FLOW-PERFORMANCE RELATIONSHIP OF ISLAMIC EQUITY FUNDS OF PAKISTAN

Author(s): Muhammad Munir | Malik Muhammad Faisal | Mubashar Tanveer | Mohsin Altaf

Type of publication: Journal paper

Abstract: The purpose of this study was to examine the flow-performance relationship of Islamic equity funds of Pakistan. Along with the past performance, six other variables were also used to explore the relationship. Those variables included fund’s age, fund’s size, risk, expense ratio, portfolio turnover, and market return due to their effect on fund’s flow. After gathering the data, panel data regression was used to find the results of data gathered from 10 Pakistani Islamic equity funds with a time period between July, 2014 and June, 2018. The results indicated a significant negative relationship of past performance with fund’s flow which established the presence of a significant flow-performance relationship of Islamic equity funds. Furthermore, negative relationship of fund’s flow was found with fund’s size, risk, portfolio turnover, and market return. Current study only explored of the nature of flow-performance relationship of Islamic equity fund. Current study also recommended future research directions including exploration of flow-performance relationship of fund types.

Published URL: https://www.researchgate.net/publication/335338400_Flow-Performance_relationship_of_Islamic_Equity_Funds_of_Pakistan

Date Published: April 1 2019

Publication title: Al-Qalam

Publisher: Research Gate

Place of publication: Pakistan

Pages: 439-2

Subject(s): Economics

Keywords: Mutual Funds | Flow of Funds | Fund’s Performance | Islamic Equity Fund

Depositing User: Luke Miller