Fund Characteristics and Financial Performance of Collective Invesment Schemes in Kenya

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dc.contributor.advisorJames Gatauwaen_US
dc.contributor.authorKalekye, Sylvia Ndanu
dc.date.accessioned2024-02-02T08:28:55Z
dc.date.available2024-02-02T08:28:55Z
dc.date.issued2023-11
dc.descriptionThis Project Was Submitted to the School of Business, Economics & Tourism, in Partial Fulfillment for the Award of Degree in Master of Business Administration (Finance Option) of Kenyatta University, November, 2023en_US
dc.description.abstractA collective investment scheme is a plan where many investors who share the same financial goal pool together funds and appoint a professional manager of these funds to do the investment on their behalf at a fee. This makes investment in collective investment schemes more cost effective in accessing a several shares/ equity, bonds, fixed deposits and treasury bills. Managing performance of collective investment schemes involves use financial ratios such as liquidity ratios, profitability ratios, asset management ratios and leverage ratios. The general objective of this research project was to determine the effect fund characteristics on the financial performance of collective investment schemes in Kenya. The specific goals of the study were; to investigate the impact of that institutional factors, investment strategy, the regulatory framework and lastly to the scheme products on the performance of collective investment schemes in Kenya financially. The study was grounded on theories such as: the Capital Asset Pricing Model, the Keynesian Theory, the Arbitrage Pricing Theory and lastly the Theory of Financial Deepening. Because of the nature of the variables of the study the population characteristics, the researcher used secondary data in the study. The 21 Nairobi based CISs constituted the target population. Census was used in the study since the population is small. The researcher used the stata method in the analysis of data. Diagnostic tests and panel data modeling was carried out simultaneously. The study took ethical considerations into account The study concentrated on Collective investment schemes in Kenya which operated between 2018 and 2022, a period during which possibly some CISs that either had not existed or were just starting up leading to unbalanced panels being generated. Reliance on secondary data could also have resulted into undetected errors. The study found out and affirmed that institutional factors have a positive significant effect on Return on Investment; the findings further showed that scheme products had a moderating effect on the link between funds characteristics and CIS performance. Study findings will bridge the financial knowledge gap and also make an improvement the available financial academic reference material on financial outcomes of Kenyan Collective Investment Schemes. This study also expanded the available empirical evidence by using Return on Investment metric as a financial performance measure. The study concluded and affirmed that institutional factors have a positive significant effect on Return on Investment. The research conclusions that those fund characteristics have a positive significant effect on return on investment (ROI of the collective investment schemes. The study therefore recommended that fund managers should more actively engage in diversification policies that strengthen the funds characteristics in the firm by probably considering the technology-backed investments which will improve the financial performance of the Collective Investment Schemes. This will help in improving the available knowledge on the elements that promote Returns on Investments of emerging players in the country’s finance industry.en_US
dc.description.sponsorshipKenyatta Universityen_US
dc.identifier.urihttps://ir-library.ku.ac.ke/handle/123456789/27444
dc.language.isoenen_US
dc.publisherKenyatta Universityen_US
dc.subjectFund Characteristicsen_US
dc.subjectFinancial Performanceen_US
dc.subjectCollective Invesment Schemesen_US
dc.subjectKenyaen_US
dc.titleFund Characteristics and Financial Performance of Collective Invesment Schemes in Kenyaen_US
dc.typeThesisen_US
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