IMPACTS OF EXCHANGE RATE VOLATILITY AND INFLATION RATE ON MUTUAL FUNDS

Abstract

Examining how inflation and exchange rate fluctuation affect mutual fund performance was the aim of this research. According to the research, it is unclear how much macroeconomic factors influence mutual fund performance. Between the variables and mutual funds, some researchers find a positive link and others a negative one. Moreover, VAR model has been employed to ascertain mutual fund macroeconomic factors. Data collection has been done from Mutual Funds Association of Pakistan (MUFAP) and World Development Indicators (WDI) from 2010 -2022 in Pakistan. Interestingly, the findings showed a significant inverse association between the performance of equities funds' finances and the exchange rate. The scholarly community, managers of equity funds, and 
policymakers will find considerable value in the research findings. Moreover, the objectives of this study mainly deals (and are related to) three different theories on Mutual Funds.