Can investment in microfinance funds improve risk-return characteristics of a portfolio?
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11230%2F14%3A10283472" target="_blank" >RIV/00216208:11230/14:10283472 - isvavai.cz</a>
Alternative codes found
RIV/61384399:31110/14:00045834
Result on the web
<a href="http://dx.doi.org/10.3846/20294913.2014.869514" target="_blank" >http://dx.doi.org/10.3846/20294913.2014.869514</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.3846/20294913.2014.869514" target="_blank" >10.3846/20294913.2014.869514</a>
Alternative languages
Result language
angličtina
Original language name
Can investment in microfinance funds improve risk-return characteristics of a portfolio?
Original language description
This article is concerned with contribution of microfinance investment funds to a sustainable financial portfolio. With regard to the dependence of microfinance funds' returns on the performance of stock and fixed income markets in developed and emergingeconomies we find slightly negative correlation when measured by the portfolio beta measure. Our regression analysis confirms that returns on investment in microfinance investment funds exceed the returns on the market portfolio. This result together with reported near-to-zero beta estimates as a proxy for the systematic risk may be taken to be a clear financial advantage of an inclusion of microfinance assets in a portfolio compared to pure stock or bond portfolios. The results based on CAPM beta andJensen's alpha are confirmed by mean-variance spanning test. We show that the socially responsible investors may invest into microfinance without sacrifice with respect to pure financial indicators.
Czech name
—
Czech description
—
Classification
Type
J<sub>x</sub> - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)
CEP classification
AH - Economics
OECD FORD branch
—
Result continuities
Project
—
Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2014
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Technological And Economic Development Of Economy
ISSN
2029-4913
e-ISSN
—
Volume of the periodical
20
Issue of the periodical within the volume
4
Country of publishing house
LT - LITHUANIA
Number of pages
23
Pages from-to
673-695
UT code for WoS article
000346354400004
EID of the result in the Scopus database
—