Examining the Determinants of Financial Performance of Mutual Funds A Comparative Study of Conventional and Islamic Mutual Funds in Egypt | ||
| المجلة العلمية للدراسات التجارية والبيئية | ||
| Volume 16, Issue 3, July 2025, Pages 3789-3815 PDF (982.71 K) | ||
| Document Type: المقالة الأصلية | ||
| DOI: 10.21608/jces.2025.458668 | ||
| Authors | ||
| Mariam Mohammed Anwar El-Shafei* 1; . Ahmed Fekri Mabrouk* 2 | ||
| 1Master of Science in Business Administration in Finance | ||
| 2Acting Dean, Faculty of Business Administration Misr International University | ||
| Abstract | ||
| Background The nowadays trend towards investing in mutual funds and the growing demand for Sharia-complaint investment alternatives has raised concerns about the factors driving the financial performance of this investment vehicle and whether there is a difference between the financial performance of Islamic mutual funds and its conventional counterparts. Aim The purpose of this research is to identify the determinants of the financial performance of open-end equity Islamic and conventional mutual funds operating in the Egyptian financial market including fund age, fund size, fund objective, interest rate, inflation rate and exchange rate besides evaluating the financial performance of Islamic mutual funds against its conventional peers. Methodology The study used a quantitative approach where panel data analysis was performed through employing descriptive statistics and dynamic panel data regression models. A sample of 33 mutual funds was chosen representing 24 conventional funds and 9 Islamic during 2016-2023. Results The results has revealed that the fund objective appeared to be a poor indicator in contributing the financial performance of mutual funds. Both fund size and interest correlates positively and significantly with Growth of Hundred, Sharpe ratio and Treynor ratio; however, they correlate negatively and significantly with Jensen Alpha. Fund age has demonstrated a positive significant relationship with Growth of Hundred and a negative significant relationship with the risk-adjusted performance measures. The exchange rate has exhibited a positive and significant relationship with Growth the Hundred and Jensen Alpha; in contrast, it showed a negative and significant relationship with Sharpe ratio and Treynor ratio. | ||
| Keywords | ||
| Fund attributes; Macroeconomic variables; Risk-adjusted Performance; Fund performance; Islamic Finance | ||
|
Statistics Article View: 4 PDF Download: 1 |
||
