Open Access Open Access  Restricted Access Subscription or Fee Access

Performance Measurement of Islamic Mutual Funds in Pakistan

Asaf Zia


In this research study we used 16 Islamic open ended mutual funds that are operates by different fund managers of Pakistan. Research founded that returns of funds are not to their level of risk. performance of funds managers is too poor by the help of results obtain from four model of our study Sharpe ratio, Reward to volatility, Jensen’s alpha and M-squared ( .we firstly calculated average monthly returns, net asset value and market index value and founded  that performance of Islamic Mutual Funds industry  is too poor. conclusion of  this research study  is that the Islamic mutual fund is not performing against KMI 30 index and Islamic mutual funds is not attractive and their diversification ability is too poor.


Islamic Open Ended Funds, Sharpe Ratio, Reward to Volatility, M-Squared (

Full Text:



Carhart, M. M. (1997). On persistence in mutual fund performance. The Journal of finance, 52(1), 57-82.

Elfakhani, S. M., Hassan, M. K., & Sidani, Y. M. (2007). 16 Islamic mutual funds. Handbook of Islamic Banking, 256.

El-Gamal, M. A. (2000). A basic guide to contemporary Islamic banking and finance. Houston: Rice University.

Girard, E., & Hassan, M. K. (2005). Faith-based investing–The case of Dow Jones Islamic Indices reexamined. University of New Orleans working paper, New Orleans, LA.

Grinblatt, M., & Titman, S. (1993). Performance measurement without benchmarks: An examination of mutual fund returns. Journal of Business, 47-68.

Haslem, J., Baker, H., & Smith, D. (2008). Performance and Characteristics of Actively Managed Retail Mutual Funds with Diverse Expense Ratios. Financial Services Review, 17(1), 49-68.

Jensen, M. C. (1968). The performance of mutual funds in the period 1945–1964. The Journal of Finance, 23(2), 389-416.

Razzaq, N., Gul, S., Sajid, M., Mughal, S., & Asma, B. (2012). Performance of Islamic Mutual Funds in Pakistan. Economics and Finance Review, 2(2), 16-25.

Al-Qaradawi, Y., & Zakat, F. A. (1999). A Comparative Study. London: Dar al-Taqwa Ltd.

Shah, S. A., Hijazi, S. T., & Hamdani, N. H. (2005). Performance Evaluation of Mutual Funds in Pakistan.

Sipra, N. (2006). Mutual Funds Performance in Pakistan, 1995-2004. Centre for management and Economic Research, Lahore University of Management Sciences.

Ter Horst, J. R., Nijman, T. E., & Verbeek, M. (2001). Eliminating look-ahead bias in evaluating persistence in mutual fund performance. Journal of Empirical Finance, 8(4), 345-373.

Uusmani, M. T., & Taqī ʻUs̲mānī, M. (2002). An introduction to Islamic finance (Vol. 20). Brill.


  • There are currently no refbacks.

Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.