How to choose investments that match your needs? A proposal for the categorization of mutual funds for Latin American emerging markets, case of Costa Rica

Maiko Zheng-Guo, Manrique Hernández-Ramírez and Martín Solís

Revista de Ciencias Económicas, 2023, vol. 41, issue 1

Abstract: Mutual funds are frequently classified according to their investment objective; however, this methodology does not guarantee that the products formed in the same group have a similar level of return, risk, and performance. For this reason, this study proposes a classification method using the conglomerate analysis technique for the 92 mutual funds in the Costa Rican market. As a result, it was possible to separate the 92 mutual funds into 8 different groups by the grouping method called partition around medoids (PAM). This proposal can facilitate investors and other actors better strategic planning and decision making from a financial perspective.

Keywords: MUTUAL FUNDS; CLUSTER ANALYSIS; INVESTORS; PARTITION AROUND MEDOIDS (PAM); COSTA RICA; FONDOS DE INVERSIÓN; INVERSIONISTAS; ANÁLISIS DE CONGLOMERADO; PARTICIÓN ALREDEDOR DE MEDOIDS (PAM); COSTA RICA (search for similar items in EconPapers)
JEL-codes: A (search for similar items in EconPapers)
Date: 2023
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