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Ten Myths of Performance Evaluation of Mutual Funds: a Snapshot View

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  • G.V. Satya Sekhar

    (GITAM University, India)

Abstract

There are numerous studies conducted to examine the performance of mutual funds of the developed capital markets based on age-old models. This paper is intended to examine the trends in modeling dimensions of measuring performance of mutual funds during last 50 years. This paper is intended to examine some basic myths about performance evaluation of mutual funds. There are several studies on this issue. It is observed that the opinions of scholars are deviating and not correlating with the results. For instance, persistence of performance is not confidently proved by the scholars. There are various reasons which are exhaustive and to mention a few like: market fluctuations, market timing ability, and competition in the industry.

Suggested Citation

  • G.V. Satya Sekhar, 2016. "Ten Myths of Performance Evaluation of Mutual Funds: a Snapshot View," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 5(1), pages 59-65, February.
    • Handle: RePEc:ods:journl:v:5:y:2016:i:1:p:59-65
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    References listed on IDEAS

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    1. David A. Volkman & Mark E. Wohar, 1995. "Determinants Of Persistence In Relative Performance Of Mutual Funds," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 18(4), pages 415-430, December.
    2. Sanjay Rastogi & Pradeep Saxena, 2013. "An Analysis of Public and Private Sector Banks Performance Using CAMEL Model," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 2(4), pages 268-278.
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    8. Angel Mirchev & Sv. Lesidrenska & Mihail Ivanov, 2013. "Management of Regional Projects and EU Funding Mechanisms," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 2(4), pages 263-267.
    9. G.V. Satya Sekhar, 2012. "Trends in global mutual funds: a future vision," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 1(1), pages 8-14.
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    11. Carhart, Mark M, 1997. " On Persistence in Mutual Fund Performance," Journal of Finance, American Finance Association, vol. 52(1), pages 57-82, March.
    12. Jagan Gaur & Mihir Dash, 2015. "Macroeconomic Factors and Performance of Indian Stock Market," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 4(1), pages 11-15.
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    15. Chang, Jow-ran & Hung, Mao-wei & Lee, Cheng-few, 2003. "An Intertemporal CAPM Approach to Evaluate Mutual Fund Performance," Review of Quantitative Finance and Accounting, Springer, vol. 20(4), pages 415-433, June.
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    Cited by:

    1. repec:vpr:ecbook:373 is not listed on IDEAS
    2. Vishwas B. & N. Sivakumar, 2016. "Mutual Fund Portfolio Hedging Using Index Futures: An Empirical Analysis," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 5(3), pages 203-210, August.

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