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Topics: Investment, Mutual fund, Hedge fund Pages: 114 (14872 words) Published: January 15, 2013
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COMPARATIVE ANALYSIS OF MUTUAL FUNDS IN GHANA

USING BETA AS THE DETERMINANT FACTOR.



LIST OF TABLES

Table 2.1

Difference between a Unit Trust and a Mutual Fund

Table 2.2

Classification of Collective Investment Schemes in Ghana

Table 2.3

Performance of Collective Investment Schemes in Ghana 2010

Table 2.4

Market Share and Performance of Collective Investment Scheme in Ghana 2010

Table 4.1

Various Collective Investment Scheme with No. Shareholders, Annualized Returns of the funds

Table 4.2

Correlation Output Results of NAV, No. Shareholders and Annualized Returns of Listed CIS

Table 4.3

Annualized Returns of Four (4) Equity Fund and the Market Index (GSE-ASI)

Table 4.4

Annualized MFUND Returns and the 91-Day Treasury Rate

Table 4.5

Regression Output Result of EPACK Returns and GSE-ASI

Table 4.6

Regression Output Result of SAS Fortune Returns and GSE-ASI

Table 4.7

Regression Output Result of NTHC Equity Returns and GSE-ASI

Table 4.8

Regression Output Result of Anidaso Returns and GSE-ASI

Table 4.9

Regression Output Result of MFUND Returns and GSE-ASI

Table 4.10

Regression Output Result of EPACK Returns and GSE-ASI

Table 4.11

Summary of Regression Analysis Output Result

Table 4.12

Comparative Analysis of Four Equity Fund and one (1) Money Market Fund

LIST OF CHARTS

Chart 2.1

Performance of Funds as of the End of 2010

Chart 4.1

Scatter Plot of EPACK's Returns and GSE-ASI

Chart 4.2

Scatter Plot of SAS Fortune's Returns and GSE-ASI

Chart 4.3

Scatter Plot of NTHC Horizon's Returns and GSE-ASI

Chart 4.4

Scatter Plot of Anidaso's Returns and GSE-ASI

Chart 4.5

Scatter Plot of MFUND's Returns and GSE-ASI

Chart 4.6

Comparative of Investment Returns (2005-2010)

LIST OF ACRONYMS AND ABBREVIATIONS

APT

Arbitrage Pricing Theory

AMF

Anidaso Mutual Fund

AUM

Asset Under Management

CAPM

Capital Asset Pricing Model

CGT

Capital Gain Tax

CIS

Collective Investment Scheme

DSI

Databank Stock Index

ECOWAS

Economic Community of West African State

EFAMA

European Fund and Asset Management

EMH

Efficient Market Hypothesis

EP

Expected Return of Portfolio

EPACK

Evelyn Phyllis Angelina Carolina Kingsley

GSE

Ghana Stock Exchange

GSE-ASI

Ghana Stock Exchange All Share Index

GSE-CI

Ghana Stock Exchange Composite Index

IOSCO

International Organization of Security Commission

IPO

Initial Public Offering

MOM

Momentum Factor

MFUND

Money Market Fund

NAV

Net Asset Value

NGIS

New Generation Investment Services

NTHC

National Trust Holding Company

PNDCL

Provisional National Defense Council Law

REIT

Real Estate Investment Trust

RM

Return of Market Portfolio

RT

Investor's Risk Tolerance

SAS

Strategic African Securities

SEC

Securities and Exchange Commission

SDF

Stochastic Discount Factor

SPSS

Statistical Package Social Sciences

T-BILL

Treasury Bills

TM

Treynor and Mazuy

U

Utility of the Portfolio

VP

Variance of the Portfolio

ABSTRACT

The development of our Nation, Ghana, lies in our own hands. Our contribution to economic development goes a long way to secure us in the future. The objective of this research is to compare the various equity funds in Ghana using beta and alpha as the determinant factors. The awareness of the benefits of investment is gradually spreading among the Ghanaian population. However, many who venture into many forms of investment lack the concept of that particular investment.

Ghanaian Investors are gradually increasingly getting interested in mutual fund selection, demanding detailed mutual fund information and investment advice. Many authors have tried to clarify...

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