tailieunhanh - Determinants of Growth for Thai Mutual Fund Industry

Among funds, there are substantial differences in risk-return profiles, investment horizons, asset allocation, eligible instruments, risk tolerances, and constraints. 19 Because each fund is different and has varying goals and objectives, it is difficult to generalize about the investment strategies of SWFs as a class. For example, an oil-exporting economy may initially establish a SWF for stabilization purposes. However, if the assets under management by the SWF grow to exceed the levels needed for stabilization, the country may either change the priorities and investment strategy of the fund or establish a separate fund with a more aggressive investment approach. Thus, several countries have multiple sovereign. | International Research Journal of Finance and Economics ISSN 1450-2887 Issue 86 2012 EuroJournals Publishing Inc. 2012 http Determinants of Growth for Thai Mutual Fund Industry Sarayut Nathaphan Assistant Professor in Finance and Professor in Finance Department of Finance Thammasat Business School Thammasat University 2 Prachan Road Bangkok Thailand E-mail Pornchai Chunhachinda Assistant Professor in Finance and Professor in Finance Department of Finance Thammasat Business School Thammasat University 2 Prachan Road Bangkok Thailand Abstract Thai mutual funds industry has grown drastically and become an alternative channel of savings and investment in the past five years from 2006 to 2010 particularly as real deposit interest rates remain in negative territory. At present the country s assets under mutual fund management equal trillion or around 37 per cent of total household bank savings. Proportion of equity funds to total assets under management of the industry rose from approximately 10 percent to 15 percent. Fixed income funds play an important role determining industry growth. It is therefore essential that all stakeholders in the capital market especially investors understand the nature of the mutual fund industry both in terms of the variety of products and services and the real advantages it offers. It is especially important when Thai capital market is approaching more financial liberalization in 2015. Three determinants of mutual funds growth besides funds performance are distribution channel reputation of parent company and administrative expenses. Therefore asset management companies with better distribution channel or better access to clients through a bank s nationwide branches and with more efficient complete financial services from their parent companies leading to more efficient cost management have higher growth opportunities. Possessing the three determinants