Abstract
This study conducts a regression analysis between the efficiency scores and
the explanatory variables. Data was collected for explanatory variables like
age of the mutual fund, size of fund family, number of funds in funds family,
and volatility (beta). As this study used input oriented model, mutual funds
were categorized and relatively evaluated on the basis of similar outcomes
and inputs charged. Out of 44 mutual funds understudy, only 7 of the mutual
funds were cost efficient. This indicates that nearly 37 of the mutual funds
under study have more costs associated to them as compared to the return they
are offering to the investors. It has been safely assumed that all the mutual
funds, which are below the efficiency frontier, should compare themselves with
the industry benchmark efficient mutual funds. In order to make these
inefficient mutual funds reach the optimum and higher efficiency score, the
fund managers should check every input and determine the slack they can
afford to reduce the input without reducing the output generating from it.
Authors
1-Romana Bangash Assistant Professor, Department of Management Sciences, Institute of Management Sciences, Peshawar, KP, Pakistan.2-Arif Hussain Assistant Professor, IBL, Abdul Wali Khan University Mardan, Mardan, KP, Pakistan. 3-Muhammad Hassan Azhar MS Scholar (Management Sciences), Institute of Management Sciences, Peshawar, KP, Pakistan.
Keywords
Performance Evaluation, Mutual Funds, Data Envelopment Analysis
DOI Number
10.31703/gssr.2018(III-II).14
Page Nos
212-236
Volume & Issue
III - II
