A Comprehensive Study on Performance Evaluation of Ten Mutual Funds in Bangladesh

Abstract

This report includes a comparative study on performance evaluation of ten mutual funds in Bangladesh. Evaluating the performance of mutual fund industry of Bangladesh was the prime objective of this study. To fulfill the objective of the study, we have considered four models that are Sharpe ratio, Treynor ratio, Jensen’s index and Capital Asset Pricing Model. The chosen models were applied on ten randomly selected mutual funds, which include ABB1STMF, AIBL1STMF, ATCSLGF, DBH1STMF, EBL1SMF, EBLNRBMF, 1JANATAMF, 1STPRIMFMF, EXIM1STMF and FBFIF. In the first part of the report an introduction of mutual fund were provided. After that, the theoretic models were discussed. It even contains some basic financial and statistical analysis. Advanced analysis based on the adopted model were included on the last part just before summary of findings. Last of all a concluding remarks were drawn. On the analytical portion lot of charts and graphs were used to provide visual demonstration of performance and side-by-side comparison. The findings of the study reflect unstable condition of mutual fund industry in Bangladesh as none of the mutual fund was actually able to provide any sign of good performance in terms of NAV. In consideration of closing share price DBH1STMF has scored positive figure on every single models that were applied in this study, which made it the best performing mutual fund among the ten selected samples.