Nigerian Journal of Banking and Financial Issues (NJBFI)

MUTUAL FUNDS SCHEME AND CAPITAL MARKET PERFORMANCE IN GHANA

Abstract

The study examined the impact of mutual fund scheme on performance of Ghanaian stock markets between the periods 2016 to 2022. Specifically, the study examined the impact of close ended fund, open ended fund and unit trust fund on Ghana stock market capitalization. Monthly data were obtained from the Ghana Securities and Exchange Commission bulletin 2023. The research study adopted econometric technique such as the Augmented Dicky Fuller unit root test and ordinary least squared test to determine the impact of mutual fund on performance of Ghanaian stock market. Findings revealed that open ended fund, close ended fund and unit trust fund are significant and positive to Ghana stock market capitalization. The study concludes that investors should invest in mutual funds scheme as it provides adequate return on investments. Above all, the study believed that investors should increase their investment appetite in mutual fund scheme (open ended, close ended and unit trust) as it provides higher return on investments than other categories of investments in the capital market.