Abstract: This paper aims to investigate the key macroeconomic factors influencing mutual fund returns in Albania as a developing economy. Despite the growing importance of investment funds in emerging markets, research on the relationship between macroeconomic conditions and mutual fund performance in Albania remains limited. To address this gap, stepwise multiple regression analysis is employed to identify the most significant determinants affecting mutual fund returns, using annual data on GDP growth, inflation, treasury bill rates, and monetary policy rates. The results indicate that GDP growth is the only statistically significant predictor, positively associated with fund performance, while inflation, treasury bill rates, and monetary policy rates do not exhibit a statistically significant relationship during the observed period. These findings highlight the importance of broader macroeconomic conditions, particularly economic growth dynamics, in explaining investment fund outcomes and provide useful implications for fund managers and policymakers in emerging markets.

Keywords: Mutual Fund Returns, GDP Growth, Inflation, Treasury Bill Rate, Monetary Policy Rate, Stepwise Regression, Emerging Markets

Pages: 134-143

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