Literature Review on Mutual Funds

A study was conducted by Grinblatt and Titman (1989) to examine the superior stock selection abilities of mutual fund managers through which researcher generated abnormal returns. For this purpose a sample of 274 funds was taken from 1974 to1984. Study applied Jensen Measure and compared the abnormal returns of active and passive investment strategies both with and without transaction costs, fees, and expenses. The results showed that the actual returns of these funds do not exhibit abnormal performance indicating that investors cannot take advantage of the superior abilities of these portfolio managers by purchasing shares in the mutual funds.

Mutual Funds Review of Literature

A study was conducted by Artikis (2002) to analyze the risk adjusted performance of equity mutual funds operating in Greek from 1995-1998. For this purpose daily, weekly and monthly returns were calculated and compared with the GIASE. These funds were ranked on the basis of standard deviation, total risk, and techniques of Treynor (1965), Sharpe (1966), and Jensen. The results showed that coefficient of variations of seven mutual funds were higher than the GIASE whereas the total risk of all the seventeen mutual funds was lower than the GIASE. On the other hand Treynor (1965) index showed values higher than the General Index of the ASE.