The Performance of Islamic Unit Trust Funds in Malaysia: Does Persistence Exist?
The paper examines Islamic unit trust fund's performance and evaluates whether the performance persists over severa1 time periods. On average, overall funds' performance as well as each fund performance is evaluated. Besides using raw return, this paper also uses Sharpe index, Treynor i...
Saved in:
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Kolej Universiti Islam Malaysia
2012
|
| Subjects: | |
| Online Access: | http://ddms.usim.edu.my/handle/123456789/5297 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Summary: | The paper examines Islamic unit trust fund's performance and evaluates whether the performance persists over severa1 time periods.
On average, overall funds' performance as well as each fund
performance is evaluated. Besides using raw return, this paper also uses
Sharpe index, Treynor index as well as Jensen Alpha index to evaluate
the funds' performance. Evaluating persistence in performance is done
by comparing &e performance measures on year to year basis starting
1999 to 2003 and also on several time intervals of one (1999)' two
(1W9-2000)' three (1999-2001), four (1999-2002) and five (1999-2003)
years. In addition, this study also ranks each trust fund according to
the performance indicator. Top 25% and bottom 25% of the funds
in the ranking are then analyzed to look at persistence in being in the
place through the differing time intervals. The results show that
persistence in performance of the overall funds, on average, cannot be
proved in the differing time periods. However, the result differ when
each fund is being evaluated . Some funds persist in performance while
the others do not. Similar results are also shown in the ranking
performance. Thus, the evidence of the persistence in performance
could give some hints to the potential investors to carefully choose which funds to commit. |
|---|