Drivers of Mutual Fund Pricing of the Nepalese Stock Market
Abstract
This study aims to explore the relationship between mutual fund market prices and critical determinants in the context of Nepal, including net asset value, age of mutual funds, expense ratio, fund size, stock market index, and interest rate. The applied multiple regression model used monthly data from May 2021 to April 2023, comprising 208 monthly observations. The model focused on understanding the impact of net asset value, mutual fund age, and stock market index, among other factors, on mutual fund market prices. The study identified net asset value, mutual fund age, and the stock market index as pivotal drivers significantly influencing mutual fund market prices. These findings emphasize their crucial importance for fund managers, investors, policymakers, and other market participants, providing valuable insights to facilitate informed decision-making. The research outcomes empower stakeholders with valuable insights and knowledge. Fund managers, investors, policymakers, and other market participants can capitalize on the research insights as they not only optimize their decision-making processes but also contribute to the overall development and efficiency of the Nepalese mutual fund market. This study enhances understanding of mutual fund dynamics by comprehensively analyzing the relationship between market prices and their determinants. Identifying primary drivers – net asset value, mutual fund age, and stock market index, provides novel insights, paving the way for future research in this domain.
Keywords: age of mutual funds, expense ratio, interest rate, net asset value, stock market index.
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