Equity mutual funds performance in Pakistan: risk & return analysis

Raza, Syed Ali and Raza, Syed Aoun and Zia, Abassi (2011): Equity mutual funds performance in Pakistan: risk & return analysis. Forthcoming in: American Journal of Scientific Research

Abstract

The purpose of this study is to find the performance of the Pakistani mutual fund industry. The performance of these funds can be considered to be very good relative to the market portfolio. This research study is focused on Secondary source of data. Analysis apply will require to investigate the related matters of research, which includes the related data of profitability ratios comprising of 12 Asset management companies (AMCs) annual reports in different time period from 1999 to 2009 using yearly returns of the different Mutual Funds. The multiple regression method is used in this paper for the performance of the funds. The results of this research explain that Market Portfolio (MP), Pakistan Investment Bonds (PIBs) are having positive and significant impact on Yearly Return (YR) of different Mutual Funds but dividends (DIV) is having negative and insignificant impact on yearly return of mutual funds, so it is recommended that it is still in early days of mutual funds in Pakistani market. The dividend had always a negative impact on the yearly returns (YR) of mutual funds because the Net Asset Value (NAV) is decreasing after giving dividend at the end of the fiscal year. This study will also add to the body of knowledge as it can be a useful reference to other researchers who are keen to carry out studies on the performance of other types of Mutual Funds in Pakistan.

• Item Type: MPRA Paper
• Language: English
• Keywords: Yearly Return of Mutual Funds, Dividends, Market Portfolio, Pakistan Investment Bonds, and Net Asset Value
• Subjects: G - Financial Economics > G1 - General Financial Markets > G11 - Portfolio Choice ; Investment Decisions

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