2015

Permanent URI for this collection

https://escholar.umt.edu.pk/handle/123456789/3992

Browse

Browsing 2015 by Author "Muhammad Adnan Izhar"

Now showing 1 - 1 of 1
  • No Thumbnail Available
    Item
    Investigation of performance and volatility of Pakistani Conventional mutual funds
    (UMT, Lahore, 2015-08) Muhammad Adnan Izhar
    Purpose: The main purpose of this research is to investigate the differences in terms of performance and volatility between conventional and Islamic mutual fund in the context of Pakistani capital market. The study determines the mutual funds that an investor considers significant while making his investment. Design/methodology/approach: To achieve the objectives of this research standard method used for evaluating the mutual funds performance and volatility, for example, ARCH/ GARCH model. Secondary data used in research and 5 equity based mutual funds taken from conventional sector as well as from Islamic sector. This study covered the time period from 2007 to 2013. KSE-30 Index used as benchmark for conventional mutual funds and KMI-30 Index used as benchmark for Islamic mutual funds. Findings: The study concludes that KMI-30 index is more volatile than all Islamic mutual funds and market gave high positive returns as compared to Islamic mutual funds and KSE-30 index is highly volatile than all conventional mutual funds and gave more positive returns than all mutual funds. The overall performance of conventional mutual funds is better than the Islamic mutual funds because conventional mutual funds gave high positive returns and majority of returns of Islamic mutual funds were in negative. The conventional mutual funds of Pakistan are more volatile than Islamic mutual funds as it can be seen through GARCH parameters. Research limitations/implications: The main limitation is that the samples of conventional and Islamic mutual funds were from equity side. The findings could be better validated if the sample includes the other types of mutual funds. Practical implications: The study assist decision making specialists to have a better look at efficient ways of selecting mutual fund’s techniques. The research findings expected to be useful to the financial institutions, managers as well as practitioners in the area of investment decision-making. Investors may get benefit by this research that where they have to invest to secure their investment. Originality/value: So far there is no published evidence on the relative performance and volatility of equity based conventional and Islamic mutual funds in Pakistan. Therefore, this study adds new knowledge to the literature of mutual funds