Factors Influencing Return on Investment in Equity Mutual Fund in Thailand
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Abstract
In this study, we focused on the analysis of influencing factors, which are involved return on investment in equity mutual fund in Thailand. This study was a quantitative study. The set of sampling data came from 274 equity mutual funds, which reach out 5 years or more maturity date at the end of 2020. From 2016 to 2020, rate of return was measured from the change in net asset value plus dividend. As mentioned above, internal factors are examined by systematic risk measured by beta, total risk measured by standard deviation. And fund-specific factors are composed of financial ratios and fund maturity. External factors are indicated by Gross Domestic Product growth. Multiple Linear Regression is applied to investigate the influencing factors of return rate on investment in equity mutual fund. The results showed that both internal and external factors statistically significantly influence return rate in equity mutual fund. The positive influencing factors, which are arranged in descending order, are working capital to total asset and Gross Domestic Product growth. The negative influencing factors, which are arranged in descending order, are standard deviation, asset turnover and fund maturity. The results from this study confirmed the importance of both internal and external factors in equity mutual fund investment. Investors suggested to choose to invest in equity mutual funds with high working capital. And they should not choose to invest in equity mutual funds with high total risk and high asset turnover.
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