PERFORMANCE EVALUATION OF VOLUNTARY PENSION SCHEME FUNDS IN PAKISTAN.

Abstract

Purpose: This research aims to assess the performance of Voluntary Pension Scheme Funds in Pakistan. The Study evaluates the performance of voluntary pension schemes of Pakistan in terms of performance in the sub funds of Pension Funds in Pakistan in the comparison of the benchmark settled by the regulatory in Pakistan for these funds to evaluate their performance. The Research measures & analyzes the performance of VPS Funds, and Profitability. Methodology: This is a cross sectional research for evaluating the performance of Voluntary pension scheme funds, the researcher used secondary data. The data is collected the mutual fund association of Pakistan (MUFAP), Fund Manager Reports for Voluntary Pension Scheme Funds, Annual Reports of Asset Management Companies & Stock Exchange of Pakistan. The data constituted of Dependent and independent variables where dependent variable is Profitability (Return) of Voluntary Pension Scheme Fund & the independent variable are allocation of funds in sub funds for a pension fund and change in their return in Voluntary Pension Scheme Fund from the year 2012-2017. Findings: The Findings from this research explains that the Independent Mean Test from the Return and Change in Return of Sub in the Voluntary Pension Funds are independent of each other as respectively return from the Equity, Debt and Money Market Sub Funds are all different from each other proving that market return is dependent on individual benchmark or specifics market. The study also analyzed that the Voluntary Pension Funds are increasingly growing in Pakistan. Despite of being long-term investment investors tends to focus the active allocation sides in these funds. Return from the Pension doesn’t depend on the fund size. The Benchmark settled by the Securities & Exchange Commission of Pakistan for the Income, Money Market and Equity Funds are ideal to standardized the performance of the Pension Sub Funds that being tested for the Pension Sub returns from 2012-2017 stands adequate and needs no up raise or down slide for the Asset Management Companies as its achieved over the period with effective fund management. Practical Implications: The findings from this research will help Investors, Employees, and Organizations with Provident Funds and Individuals seeking Old Age Remunerations for keeping their domestic household affairs sound to analyze the allocation of funds in the Voluntary Pension Fund Schemes. Pension Funds is a type of Investment in Pension is done usually for long term benefits it is usually an accumulation of funds with a moderate return, involving much lesser risk to the investment. Wealth management is key ingredient with the three Sub Funds in Voluntary Pension Schemes in Pakistan, this research will help them to maneuver their funds into these Sub funds of Debt, Equity and Money Market effectively.