The relationship between the characteristics of managers and the returns of investment funds

Number of pages: 113 File Format: word File Code: 29825
Year: 2014 University Degree: Master's degree Category: Librarianship
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  • Summary of The relationship between the characteristics of managers and the returns of investment funds

    Dissertation for receiving Master's degree (M.A)

    Field: Accounting

    Tension: Accounting

    Dissertation abstract (including summary, objectives, implementation methods and results obtained):

    The growth and development of capital markets and the emergence of investment funds as an important institution in the capital markets to attract small savings and funds to the capital markets, making the performance of investment funds an important issue And it has become significant. Different researches have been done in connection with the performance of investment funds. However, no research has been done regarding the relationship between the characteristics of managers and the efficiency of investment funds. Based on this, we have selected the statistical population including 49 investment funds with variable capital that started operating three months before the beginning of 2012 and tested them in 2012 and used linear regression method to analyze the data. The results of the research show that among the variables tested, the characteristics of managers, including education, experience, and risk-taking, have a direct relationship with the performance of investment funds, and no significant relationship has been observed between the age of managers and performance, and the age of managers with their risk-taking.

    Key words: investment funds, performance, education, age, risk-taking, experience

    1 statement of the research problem:

    Currently, the category Investment is considered as one of the basic and necessary prerequisites for moving from a traditional economy to a developed and advanced economy, in such a way that simultaneously with the growth of industries and their increasing need for financial resources, as well as due to the unresponsiveness of the banking system in providing financial services to applicants, due to the special characteristics of the money market (short-term financing), the vital role of the capital market is revealed and the necessity of its expansion is manifested. With the aim of providing long-term resources for investment in various economic sectors, the capital market has played a major role in advanced economic growth and development, and the stock exchange, as the main part of the capital market, welcomes small and large investors with any amount of initial capital. However, regardless of the numerous advantages of investing in the stock exchange, activities in this area require special investment expertise and skills, which are not possible except by spending time and gaining experience. Therefore, the best suggestion for ordinary investors without previous experience in the field of investing in the stock market in order to reduce investment risk is to buy investment units in investment funds, because investment funds are a well-known tool in the secondary markets and are one of the most important financial institutions that play a large role in providing financial resources and directing it to its capacity. Although the history of their establishment dates back to the 18th century, the first stock investment fund in Iran has started its operations since the beginning of 2017, and in this short period of time, it has proven its efficiency and numerous benefits to the public.

    One of the reasons for the success of investment funds is the arguments that introduce them as the most appropriate way for the general public to participate in the capital market, because on the other hand, the fund manager deals with specialized management and deals with stock transactions with expert analysis. and on the other hand, the investor can see the result of his investment in less than 2 days and can easily exit the market without worrying about closing the symbols or the sales queue.

    It is worth mentioning here that various factors are involved in the return of investment funds, and informed investors seek to obtain maximum profit from their investment activities by identifying and using these effective factors. More useful solutions can be provided on the efficiency of funds to increase the efficiency of investment funds and in turn attract more capital in the capital markets. So far, there are many influential variables in the returns of funds, such as environmental and managerial factors, age of funds, costs of funds, value of issuance and cancellation of funds, ownership of real and legal investors, stocks of industries in the portfolio of funds and so on. It is known that the personal characteristics of managers, such as the level of education and the quality of academic education, their experiences, skills and other characteristics, have been less investigated.It is known that the personal characteristics of managers, such as the level of education and the quality of their academic education, experiences, skills and other characteristics, have been less investigated, and these characteristics are also influential in the professional judgments of fund managers in investment decisions, and a part of the performance of investment funds can be considered to be derived from these personal characteristics of managers. Therefore, in this research, we intend to investigate the validity of this hypothesis that there is a relationship between the characteristics of investment fund managers and their returns. 1-2 The importance of the research topic and the motivation for choosing it: Despite the fact that investment funds are one of the most important institutions in attracting small capital to the capital markets and started working in the literature of the Iranian capital market in 1387, and with the passage of time, many investors have become interested in these institutions, but relatively little research has been done on the personal characteristics of investment fund managers. The research has been done and for the increasing efficiency of the capital market and the acceleration of the country's economic development, the necessary research should be done in this regard. 

    1-3 Research Objectives:

    One of the important objectives of this research is to provide a suitable platform for the growth and development of investment funds with higher returns than other investment methods and the appointment of qualified managers and, in turn, attract more capital in the capital markets and ultimately help the economic growth and development of the country.

    1-4 research questions:

    Is the education of investment fund managers effective in the returns of the funds ?

    Is the work history of managers effective in the return of investment funds?

    Is the age of managers effective in the return of their investment funds?

    Is the risk-taking of managers effective in the return of investment funds?

    Is there a relationship between the age and risk-taking of managers?

    1-5 research hypotheses:

    There is a relationship between the education of managers and the return of investment funds.

    There is a relationship between the work history of managers and the return of investment funds.

    There is a relationship between the age of managers and the return of investment funds.

    There is a relationship between the risk-taking of managers and the return of investment funds.

    There is a relationship between the age of managers and the risk-taking of managers.

     

     

     

    1-6 research methods:

    The purpose of the applied research and the method of data collection is descriptive and survey research, and since the researcher seeks to investigate the relationship between two components, this research is a correlational research.

    The main tool for collecting information is a questionnaire, interview, and library.

    1-7 The statistical population and its size:

    The statistical population in this research, according to the research variables, consists of managers of investment funds with variable capital from the beginning of 2012 to the end of 2012.

    1-8 Data collection methods:

    In this research, library and field methods are used to collect data and information. In the library section, the theoretical foundations and background of the research are mainly collected from articles obtained from the Internet and books, theses, and specialized magazines in Persian and Latin that are available. In the field section, a questionnaire will be used to collect the required data and information. In addition, if necessary, interviews with technical experts will be conducted in order to collect the required data.

    1-9 Information analysis method:

    After collecting the statistical data, Excel software will be used for summarizing and the required calculations, and SPSS and Eviews software will also be used to perform statistical tests and other required calculations

    1-10 Variables and keywords:

    Investment: A mutual fund is an institution that collects financial resources from people and invests in a diverse portfolio of securities. These funds have been created according to the definition in the Securities Market Law approved by the Islamic Council in December 2014 and as a suitable alternative to common portfolios.

  • Contents & References of The relationship between the characteristics of managers and the returns of investment funds

    List:

    Title

    Page Title

    Chapter One: Plan general. 1

    1-1 Statement of the research problem 2

    1-2 The importance of the research topic and the motivation for choosing it 3

    1-3 Research objectives 4

    1-4 Research questions. 4

    1-5 research hypotheses. 4

    1-6 Research method 5

    1-7 Statistical population and its size 5

    1-8 Information gathering method 5

    1-9 Information analysis method 5

    1-10 Variables and keywords 5

    Chapter two: theoretical studies. 8

    2-1 Introduction. 9

    2-2 Definition of investment funds. 11

    2-3 History of investment funds. 12

    2-4 background of mutual investment funds in Iran. 13

    2-4-1- Before the approval of the Securities Market Law. 13

    2-4-2 after the approval of the Securities Market Law. 13

    2-5 Objectives of investment funds. 14

    2-5-1 income. 14

    2-5-2 growth. 14

    2-5-3 Income and growth. 14

    2-6 Laws related to the establishment and supervision of investment funds. 15

    2-6-1 Laws of investment funds in Iran. 15

    2-6-2 Laws of investment funds in other countries 16

    1-6-2-1 Law of investment companies in the United States 16

    2-6-2-2 Laws related to temporary capital companies in Malaysia. 17

    2-7 types of investment funds based on the specific goals of each fund. 18

    2-7-1 Common stock investment funds. 18

    2-7-2 Balanced investment funds. 18

    2-7-3 bond investment funds or premium shares. 18

    2-7-4 Specialized investment funds. 19

    2-7-5 Investment funds with dual purpose. 19

    2-7-6 Money market funds. 19

    2-7-7 Growth and development funds. 20

    2-7-8 index funds. 20

    2-7-9 exchangeable funds. 20

    2-7-10 Municipal bond funds 21

    2-7-11 International investment funds. 21

    2-8 General classification of investment funds. 21

    2-8-1 Companies with fixed and variable capital. 21

    2-8-1-1 Management company or fund with fixed capital (closed capital) 21

    2-8-1-2 Management company or fund with variable capital (open capital) 22

    2-8-2 Diversified and non-diversified funds. 23

    2-8-2-1 Various funds. 23

    2-8-2-2 non-diverse boxes. 23

    2-8-3 Classification of mutual funds based on sales fees. 23

    2-8-3-1 Funds with fees. 23

    2-8-3-2 Fee-free funds. 25

    2-8-4 Fund classification based on investment horizon. 25

    2-8-4-1 Short-term funds. 25

    2-8-4-2 Long-term funds. 26

    2-9 pillars of investment funds. 28

    2-10 The Mutual Fund Industry in the United States 31

    2-10-1 Legal Structure. 31

    2-10-2 pillars. 32

    2-11 Inter-institutional structure. 35

    2-11-1 Inter-institutional structure in the United States 35

    2-11-2 Inter-institutional structure of mutual investment funds in Iran. 36

    2-12 Features and benefits of investment funds. 37

    2-12-1 Professional management 37

    2-12-2 Economies due to scale 38

    2-12-3 Liquidity possibility of investment units 38

    2-12-4 Social mission of investment units. 39

    2-12-5 Diversification of securities portfolio and risk reduction. 39

    2-13 Disadvantages of investment funds. 39

    2-14 Prospectus of investment funds. 40

    2-15 types of expenses in investment funds. 41

    2-15-1 Costs of the pillars. 41

    2-15-2 periodic fee. 42

    2-15-3 Issuance and cancellation costs. 43

    2-16 Net asset value of investment funds. 43

    2-17 How to price the assets of investment funds in the United States 45

    2-18 Types of profit distribution methods in mutual investment funds. 46

    2-19 Financial reporting requirements in investment funds. 47

    2-19-1 Statements of assets and liabilities along with the table of investments 48

    2-19-2 Statement of profit and loss.49

    2-19-2-1 Incomes from transitory capital. 49

    2-19-2-2 Fund expenses. 49

    2-19-2-3 increase or decrease in net assets 49

    2-19-3 statement of changes in capital 49

    2-19-4 cash flow statement. 49

    2-20 return on investment. 51

    2-21 return on investment in the fund. 51

    2-21-1 Cash profit of each investment unit. 51

    2-21-2 Capital gains from sold assets 52

    2-21-3 Capital gains from existing assets. 52

    2-22 Risk. 52

    2-22-1 Types of risk. 53

    2-23 Risk taking. 53

    2-23-1 Characteristics effective in risk taking. 54

    2-23-2 Risk preferences. 55

    2-24 Risk and return framework 56

    2-25 Investment managers 56

    2-25-1 Fund manager. 56

    2-25-2 Investment manager. 57

    2-25-2-1 CFA certificate. 58

    2-25-2-2 MBA degree. 59

    Research background. 60

    Summary of chapter 63

    Chapter three: research method. 64

    3-1 Introduction. 65

    2-3 definition of research. 65

    3-3 research methods. 66

    3-4 Statistical population and its volume. 66

    3-5 sample volume and measurement method. 66

    3-6 information gathering methods. 66

    3-7 research assumptions. 68

    3-8 research variables. 68

    3-8-1 Net Daily Value of Fund Assets (NAV) 68

    3-8-2 Real Return on Investment in Mutual Fund. 69

    3-8-3 risk tolerance. 69

    3-8-4 Education. 69

    3-8-5 work records. 70

    3-9 The method of analysis and hypothesis testing. 70

    3-9-1 Regression analysis. 70

    3-9-2 The significance test of the model. 72

    3-9-3 The significance test of research variables. 73

    3-9-4 Tests related to the assumptions of the linear regression model. 73

    3-9-4-1 The assumption of normality of the residuals: 74

    3-9-4-2 The assumption of non-collinearity between independent variables. 74

    3-9-4-3 The assumption of independence of the remainders 75

    3-9-4-4. The assumption of homogeneity of the variance of the residuals 75

    3-9-5 Deciding to reject or accept the hypotheses 77

    Chapter four: Data analysis 78

    4-1 Introduction. 79

    4-2 Descriptive statistics of research variables. 79

    4-3 The normality test of the distribution of the dependent variable of the research. 82

    4-4 Correlation between research variables. 83

    4-5 The results of the test of research hypotheses. 84

    4-5-1 Estimation of the model. 84

    4-5-2 Interpretation of the results of the first research hypothesis test. 85

    4-5-3 Interpretation of the results of the second research hypothesis test. 86

    4-5-4 Interpretation of the results of the third research hypothesis test. 86

    4-5-5 Interpretation of the results of the fourth research hypothesis test. 87

    4-5-6 Interpretation of the results of the fifth research hypothesis test. 87

    4-6 chapter summary. 88

    Chapter five: conclusions and suggestions. 89

    5-1 Introduction. 90

    5-2 summary and conclusion. 90

    5-2-1 Test results of the first research hypothesis. 91

    5-2-2 The results of the second research hypothesis test. 92

    5-2-3 The results of the third research hypothesis test. 92

    5-2-4 The results of the fourth research hypothesis test. 93

    5-2-5 The results of the fifth research hypothesis test. 93

    5-3 Research proposals. 94

    5-3-1 Suggestions based on research results. 94

    5-3-2 Other research proposals. 95

    5-3-3 Suggestions for future research. 95

    Resources and sources. 96

     

    Source:

     

    Persian sources

    Azer, Adel. Mansour Momeni (1389). "Statistics and its application in management", Volume 1, 14th edition, Semat Publishing House, Tehran.

    Pi. Jones, Charles. (1943) Investment Management, translated and adapted by Dr. Reza Tehrani and Asgar Noorbakhsh, 5th edition-88. Bazargan, Abbas and Elaha Hijazi (2010). "Research Methods in Behavioral Sciences", 21st edition, Age Publishing House, Tehran.

    Suri, Ali, (2009), Econometrics, first edition, Cultural Publishing House, Tehran.

The relationship between the characteristics of managers and the returns of investment funds