PERFORMANCE EVALUATION OF ISLAMIC MUTUAL FUNDS IN PAKISTAN

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.