Financial and Banking Strategic Studies

Analysis of the refinement fund's portfolio from start-up to sectorfund; comparison of theory with practice

Document Type : Original Article

Authors

Meysam Kaviani 1
Mohammad Salar Aghaee 2

1 Department of Management and Accounting, Karaj Branch, Islamic Azad University, Karaj, Iran

2 Department of Finance Management, Karaj Branch, Islamic Azad University, Karaj, Iran.

https://doi.org/10.22105/fbs.2023.183226
Abstract
Today, Exchange-Traded Funds (ETFs) are very attractive due to their low fees, potential tax efficiency, stock-like characteristics, ease of trading during trading hours, and ability to provide creative solutions for investors. As the result, growth of tradable funds in Tehran the Stock Exchange has increased since Since 2012. the basis of the formation of these funds from must an investment perspective be scientific, this article analyzes the refinement fund by considering the price and yield data of this fund and the assets in it using analysis. correlation and regression a the results showed that the Refinement fund did not have pricing and diversification efficiency and the percentage of investment in the assets of this fund, considering the Sharpe model, indicated that the fund's portfolio was not optimal at the time of establishment. The results also showed that, in the case of segmenting this fund, it is necessary to consider the correlation coefficient between the industry of which the fund is made up and the total index, and it is necessary to rebalance the fund with the aim of reducing risk and increasing efficiency. 

Keywords

Refinement fund
Sector fund
Theory
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Financial and Banking Strategic Studies
Volume 1, Issue 3
Autumn 2023
Pages 167-177

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