A STUDY ON THE IMPACT OF MACROECONOMIC VARIABLES ON MUTUAL FUNDS PERFORMANCE USING REGRESSION ANALYSIS

Abstract

Mutual funds have grown in importance in the Indian financial system during the last ten years, gaining traction in the banking, private, and government sectors. Today's investors prioritize getting the highest returns, necessitating precise forecasting models. This makes it difficult for managers to estimate future net asset values (NAVs). This study uses multiple and stepwise regressions to examine how macroeconomic factors—such as gold, silver, foreign exchange rates, crude oil, the BSE, NSE, money market value, and inflation—affect SBI Net Asset Values. Finding important variables, estimating a high R2 value, and improving forecasting accuracy by removing less important variables are the objectives.