Performance of unit trust in Malaysia / Siti Nurhafiza Zulkifly

Unit trust (UT) is a form of collective investment constituted under a trust deed. It allows funds to hold assets and pass profits through to the individual owners, rather than reinvesting them back into the fund. The issues rise when some of the investors found that the unit trust funds can give benefit to them and some of them are opposite. Also, some of the researchers found that the characteristics of fund can give effect to the performance of unit trust funds. Also, it is not much research attempt to identify the predictive power of fund characteristics towards the performance of unit trust funds in Malaysia. This paper examines the characteristics of fund that affect unit trust funds performance by studying 14 Malaysian equity funds over the period of three years from year 2012 to year 2014 annually. The characteristics examined include Fund Size, Management Expense Ratio, Portfolio Turnover Ratio and Fund Age. The study will be used panel data series regression method to see the relationships between dependent and independent variables. The Unit Trust Funds Performance is based on measurement of risk adjusted return of Jensen's Alpha and will be used as dependent variable and Management Expense Ratio, Fund Size, Portfolio Turnover Ratio and Fund Age will be used as independent variables.