Performance of Mutual Funds and Mutual Fund Manager in Pakistan

Abstract

Purpose: This study examined the performance of mutual fund and mutual fund manager in Pakistan during the period of Jul, 2006 to Jun, 2016. The objective is to found the funds’ performance through risk and return and ability to forecast the funds return by mutual fund manager. Methodology/Design: The data will be used from the authentic source of SBP publication (State Bank of Pakistan) and MUFAP (Mutual fund association of Pakistan) of 54 mutual funds working in Pakistan. The data will be analyzed by using Statistical tests of Sharpe ratio, Sortino ratio, Treynor measure and Information ratio. Results: Results indicated that fund returns are found positive and significant against risk free securities but funds return against the market return and fund manager ability to forecast fund returns is found negative and insignificant the rate of return of an investment made in mutual funds. Originality/Value: Islamic funds and Sortino and Information ratio based on our knowledge have not been studied by the previous researchers.