Study of the relative importance of factors influencing the investment funds performance -A practical study on 37 funds from the Saudi Arabia Financial Market (2010-2017)-

Abstract

The purpose of this study is to analyze the characteristics influencing the investment funds performance. To fulfill such goal, we built a sample that expresses the relationship between the independent variables (the age of the fund, the targeted venture strategy and the market factor movement) and the dependent variable (investment funds performance). This sample is applied to 37 investment funds authorized by the Saudi Stock Exchange Market for the period 2010-2017 by adopting structural equation modeling according to least square method (PLS-SEM) to indentify cause-effect relationships and the interactive effects among the study variables. The statistical analysis has demonstrated the validity of the applied model through discriminate validity and predicative ability. Furthermore, the statistical analysis and corresponding interpretations have provided realistic indicators evidencing level significance impact of both targeted venture strategy and market index movement on the investment funds performance. However, the same indicators have shown the non influence of the fund age level significance on the investment funds performance