The Moderating Role of Fund Size on the Relationship between Disposition effect and Portfolio Financial Performance of Mutual Funds in Kenya

Several Kenyan mutual funds' financial performance has recently been on the downturn. Overall, variations in critical criteria reveal variable economic over time among Kenya's funds. It was crucial to assess whether portfolio pattern may be attributed behavioral investing traps. The objective of this study determine how disposition effect affected performance, and closely fund size relationship between investment traps performance. research method used a causal design. Data from panel were gathered. Over an eleven-year period, 2011 2021, secondary data obtained previously published statements. Secondary acquired using collection tool. analysis done with Stata software, version 15. unit root test, stationarity carried out. Panel regression applied. use fixed random effects also Levin-Lin-Chu Augmented Dickey-Fuller Im-Pesaran Shin tests, Philips-Peron Hadri 2000 test all evaluate validity reliability data. Jarque-Bera employed normality. In analysis, model separated Hausman test. variables distributed properly, as shown by skewedness kurtosis tests. There no approaching multicollinearity variables, according pairwise correlation study. results revealed that had negative but substantial influence funds Kenya coefficient -0.5455628. additionally found probability value 0.1560 which not significant. This therefore shows does have significant demonstrated considerable impact fund. suggested is subject sizeable yet adverse effect. According multiple study, negatively significantly impacted But when institutional investors managers are dissecting decisions, they should isolation. Based findings, stakeholders aware information insusceptible biases arising finance decision making processes.