International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

 

OPEN-ENDED EQUITY MUTUAL FUNDS
Amporn Soongswang, Yosawee Sanohdontree

Abstract
This paper examines performances of 138 open-ended equity mutual funds managed by the seventeen asset management companies in Thailand during the period 2002-2007. Several different investment horizons of fund performances were analyzed using various evaluation methods: the Treynor ratio, Sharpe ratio, Jensen’s alpha and Data Envelopment Analysis (DEA) technique. The results suggest that performances of the funds measured by the first three methods, which are based on risk and return, significantly out-perform the market for all time-periods of investment. The abnormal returns of the funds for investors are significant and persistent. Meanwhile, those evaluated by the last method, which is a multi-criteria approach, result in varied outcomes: out-performing and under-performing, depending on time-periods of investment. However, on average, the funds’ performance is significantly positive for three-month time period of investment, at least. Finally, it is concluded that in Thailand, open-ended equity mutual funds can be a good choice for individual investors.

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