Abstract:
The main objective of this study is to examine the performance of mutual funds in term of
their risk and return of Islamic and conventional funds in Pakistan. For the analysis the data
was taken from the period 2010-2013. The samples of 3 Islamic and 3 Conventional
Mutual funds were selected out of 119 open ended funds for the period of 4 years. The
procedures used for the assessment of mutual funds are “Sharpe Ratio”, ‘Treynor’s Index”
and “Information Model”. The output has been judged statistically and graphically. The
finding of this study reveal that the Islamic mutual funds are performing well as compare to
the conventional mutual funds because these Islamic mutual funds are paying better interest
rate as compare to the conventional Mutual Funds, the reason for paying high interest is
that Islamic Mutual Funds plays defensive tactic that gives them foundation to retain in the
market.
