Abstract:
Information about Mutual Funds allows investors to evaluate the
performance of actively managed portfolios. In the current
economic situations the normal investor has very limited avenues
to invest their money. Numerous options are available but
factors related to risk and return are the most effecting
factors for decision.
In the last few years mutual fund industry has shown significant
progress with reference to saving mobilization and important
part of the overall financial markets. But still we are far
behind the developed countries mutual fund industry. we can
mobilize savings from masses which may be laying an idle money
at present. By doing so we would be able to improve the living
standard of our countrymen through economic prosperity. This can
be achieved through the introduction of different species of
mutual funds and their performance. The success of this sector
depends on the performance and the role of regulatory bodies.
Excellent performance and stringent regulations will increase
the popularity of mutual funds in Pakistan. To conclude some
solid results for the investor decision we have selected some
Growth funds and analyze their performances over the 5 year of
time period. In the analysis, financial performance was measured
using each fund’s annualized five year return. Relative risk was
measured using a five year standard deviation. Standard
deviation measured the amount a fund deviates from expected
returns. Funds that have a history of volatile financial
performance will demonstrate higher standard deviations and thus
have higher financial risk. All statistics were gathered from
Different companies’ websites, their offices and some other
second hand resources like regulatory bodies i.e. SECP, KSE
