MUTUAL FUNDS INVESTMENT ANALYSIS IN NEPAL

Abstract

The study aims to analyze the determinants of mutual funds’ performance in Nepal for period 2018/19 to 2022/23 using interest rate, fund size, dividend payout ratio, fund assets growth and management fees as independent variable while return on assets and return on equity as dependent variables. This study employed descriptive and casual research design. This study select 10 mutual fund as a sample using purposive sampling method. The result showed that return on equity is negatively impacted by fund size and DPR where fund size is statistically significant at 5% level of significance while DPR is significant at 10% level of significance respectively. So, there is linear relationship of ROE with fees, IR, assets growth, DPR and size of firms. ROA is negatively impacted by management fees and it is not significant even at 10% level of significance. Similarly, ROA is positively impacted by interest rate, Size, DPR and fund assets growth, where Size, interest rate and DPR is statistically significant at significance level of 5% respectively. So, there is linear relationship of ROA with Fees, IR, Assets growth, Size and DPR of firms which is similar with the findings of Hammouda et al. (2023) and Haralaya (2022) but contradict with Tian et al. (2022) and Rahman (2021).