An empirical study on examining the influence of mutual fund investment growth on equity market performance

¹ Department of MBA, KG Reddy College of Engineering and Technology, Moinabad, Hyderabad, India
² Department of Management Studies, B V Raju Institute of Technology, Narsapur, Medak District, Telangana, India
³ Department of MBA, KG Reddy College of Engineering and Technology, Moinabad, Hyderabad, India
⁴ Department of CSE, GRIET, Hyderabad, Telangana, India
⁵ Lovely Professional University, Phagwara, Punjab, India.

^* Corresponding author: sureshcareercatcher@gmail.com

Abstract

In the realm of financial markets, understanding the interplay between mutual fund investment growth and equity market performance is paramount for investors, fund managers, and policymakers alike. This empirical study embarks on a comprehensive exploration of this intricate relationship, employing advanced econometric techniques to dissect historical data and uncover underlying patterns and dynamics. Building upon hypotheses positing significant associations between mutual fund investment growth and equity market performance, the study delves into regression analysis and statistical modelling to discern causality and quantify the impact of mutual fund investments on equity market behavior. In addition, the study investigates the influence of mutual fund performance metrics, such as annualized return, on equity market returns, shedding light on the part of mutual funds in shaping market outcomes. Despite inherent limitations, including data constraints and potential endogeneity issues, the findings contribute valuable empirical evidence and actionable insights for stakeholders navigating financial markets. Through its rigorous empirical approach and robust analytical framework, this study advances financial research and informs decision-making processes, empowering stakeholders to navigate the complex landscape of investments and market participation effectively.The findings contribute to a deeper understanding of how mutual fund investments impact equity market performance, offering valuable implications for the various players in navigating financial markets.