Islamic Vs Conventional Mutual Funds: A Comparative Analysis from Pakistan

Abstract

The purpose of this study is the comparative analysis from Pakistan between the Islamic and Conventional mutual funds with respect to stock selectivity skills & market timing abilities of the fund managers. The funds performance is also evaluated on the basis of risk & return.Treynor & Mazuay model is used to evaluate the marketing timing and stock selectivity. The data of this study is ranging from 2014 to 2018.There are tlu-ee classes of CM F's( conventional mutual funds) and IMF's(Islamic mutual funds) which are evaluated in this study which are asset allocation funds ,income funds and equity funds. Results show that the CMF's managers have better marketing timing but poor stock selectivity skills. The IMF's have performed better with respect to normal return and excess return. The risk adjusted performance ofIMF's is better than CMF's.