Performance Evaluation of Close-ended Mutual Funds by Investment Objectives in Pakistan's Economy

摘要

The Purpose of this study is to measure the performance of close-ended Mutual Funds and specify them into different categories for the guidance of investors. It also identifies Funds with high and low performance according to their investment objectives. To calculate performance of close-ended mutual Funds, five ratios via Sharpe Performance Index, Trey nor Performance Index, Jensen Alpha, Sortino Ratio And Informational/ Appraisal Ratio were used. To calculate performance secondary data was collected from Karachi stock exchange (KSE) & Business Recorder web site for almost all closed-ended Mutual Funds, which have been trading in the last eight years i.e. from 2001-2008. The data was collected on monthly bases. The results measures provided under different ratio almost similar relation between risk and return except Sortino Ratio, because it dealt only with downside risk. The Ranking differentials through various measures indicate fluctuating environment of Pakistan money markets. However, in the light of varying investment objectives, the results of Funds different, in measures, causing dissimilarities in their ranking. This indicates that close-ended mutual fund industry is not a flourishing stage in Pakistan. The results suggest Fund managers to adopt such strategies that could provide maximum benefit to the investors. The study provides analytical comparison between different closed ended Mutual Fund companies providing significant guidance for fund managers as well as the investors.