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

A decline in financial performance has recently been observed for a number of mutual funds Kenya. Overall, differences important metrics show inconsistent economic among Kenya's year over year. It was critical to determine whether overconfidence bias would be blame the portfolio trend while evaluating this. The goal this study ascertain impact on funds' Kenya and scrutinize moderating effect fund size relationship between funds’ employed causal research design. Study panel data were gathered. Secondary information gathered from previously released statements during period eleven years, 2011 2021. With use gathering tool, secondary Stata software version 15 used conduct analysis. test stationarity called unit root conducted. Regression using utilized. analysis with fixed random effects following tests run validity reliability data: Levin-Lin-Chu test, Augmented Dickey-Fuller Im-Pesaran Shin tests, Philips-Peron Hadri 2000 test. Jarque-Bera gauge normality. In analysis, model separated Hausman variables distributed properly, as shown by skewedness kurtosis tests. There no approaching multicollinearity variables, according pairwise correlation study. findings showed that Overconfidence had positive substantial influence regression coefficient 2.7295960. additionally found influences negatively -3.023683. Based results multiple it should underlined when making investment decisions overconfidence, 2.7295960, favorable but significant Kenyan funds. study, therefore, recommends emphasized decision-making processes.