Factors Affecting the Investment Unit Value of Equity Funds Invested in the Stock Exchange of Thailand

Abstract

The objective of this research was to study the factors affecting the investment unit value of the top 3 large equity mutual funds, which are mutual funds managed by Kasikorn Asset Management Co., Ltd. The quarterly secondary data were used from Q1 of 2010 to Q4 of 2019. A total of 40 quarters were estimated and modeled using multiple linear regression analysis.

The study found that the factors, affecting the investment unit values ​​of the 3 equity mutual funds are at a significance level of 0.01, namely 1) the Consumer Price Index (CPI), which found to have a positive impact on the value of investment units, reflects the changes in the prices of goods and services. If the price of goods and services increases, the company's revenue and profit also tend to be increase, 2) the Private Investment Index (PII), having a negative impact, reflects the overall investment in domestic industries and services. During the study period, listed companies showed their performance at a lower level than the overall investment in the country, and 3) the policy interest rate (MPC) has been found to have a negative impact on unit value since the policy interest rate affects the overall consumption of goods and services within the country, where the low policy rate results in interest costs for business and household sectors decreased, resulting in more spending and investment.