To Study the Mutual Fund Investment Return Against the Rising Inflation in Malaysia

Abstract

The primary objective in investment had been no doubt to overcome the inflation pressure within the economy over time to avoid losing out purchasing power as well as increasing the dollar value through investing and hence creating higher wealth for the individuals. The benchmark for the rising inflation rate in Malaysia had been concerning for the investors which triggered the motivation of the study to explore the study on mutual fund investment return in comparison against the inflation rate for the country. With this, the quantitative analysis had been introduced with the correlation analysis and regression analysis to test the significance of the relationship between the mutual fund investment return and the inflation rate in Malaysia. The results had shown existence of negative correlation between the two variables but remained not significant from inflation rate to influence the investment return of mutual fund. In addition, the comparative analysis conducted had been evidenced to show greater return on average for the past 11 years of study to surpass the inflation rate in Malaysia. With the higher return on investment for mutual as negative correlation against the inflation growth, it is recommended for the investors to invest in mutual fund especially in the time of recession in the country.