Abstract
This research is an attempt to empirically analyse the strategic behaviour i.e. selectivity and timing skills of mutual fund managers and persistence in performance of mutual funds in Pakistan using data set of thirty-three open end equity based mutual funds from June 2008-2016. Strategic behaviour has been analysed through proposed methodology by Jensen Alpha, Treynor & Mazuy and Henriksson & Merton. Persistence in risk adjusted performance has been evaluated using Sharpe, Treynor and Sortino measures. Results indicate that only few mutual fund managers possess either significant selectivity or outstanding timing skills in Pakistan. This implies that most of the mutual fund managers are either speculative or inside traders. Persistence in performance of mutual funds is not strong enough because performance of fewer mutual funds exceeds the performance of capital market. Mutual funds that exhibit positive risk premium also exhibited underperformance after the adjustment of risk factor.
Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
