Risk and Return Analysis of Closed End Nepalese Mutual Fund

Abstract

A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. This study has analyzed performance of the risk and return of closed end Nepalese mutual fund on weekly basis of return that had been trading at Nepal Stock Exchange. This study is both analytical and descriptive in nature. The study is used the model of Return, Risk and risk adjusted performance. Risk refers to relatively objective probabilities which can be computed on the basis of past experience or some prior principle. Risk may be defined as the chance of variations in actual return. Return is defined as the gain in the value of investment. The return on an investment portfolio helps an investor to evaluate the financial performance of the investment. The findings show that Beta value is low for Sanima Equity Fund as fund provides highest return for a given unit of no risk taken. The investors who need regular income can investment in Sanima Equity Fund. Keywords: Mutual fund, Risk, Return, Investors