Comparing the Performance of Private and Public Sector Mutual Funds: An Analysis of Factors Influencing Returns

Abstract

Increasing interest towards mutual funds has significantly attracted attentions of the researchers, investors in mutual fund scheme. Similarly, investment opportunities and interest towards mutual funds have also increased in Pakistan. Therefore, the aim of the research was to empirically analyse and understand the changes in performance of private and public sector of Pakistan Mutual fund. For conducting this research, researcher has relied on secondary quantitative information, and data has been derived from MUFAP on 1 private company (i.e. Al Meezan Investment Management Limited) and 1 public company (i.e. ABL Cash Fund). For data analysis, statistical tools including correlation, and T-test were used through using SPSS software. Findings show that there is a significance difference in performance of both private and public sector. As NAV and return in private sector is found to be statistically different from public sector. Additionally, risk in mutual fund of private sector is also found to be statistically different from public sector. Further, findings in the current research have also shows a negative association between return and risk of both private and public mutual funds. Findings in the current research can be used to fill a gap in previous studies. Further, findings in the current research can also be used in future studies through increasing sample size, and other factors. Moreover, it can also be used for cross countries, companies, and region.