A Comparative Study of NAV (Net Asset Value) Returns of Open-Ended and Close-Ended Mutual Funds in Pakistan

International Journal of Information, Business and Management, Vol. 7 No. 1 Feb., 2015, ISSN 2076-9202

377 Pages Posted: 21 Dec 2015

See all articles by Nawaz Ahmad

Nawaz Ahmad

RTS (Research, Trainings, and Solutions); Institute of Business Management (IoBM)

Imamuddin Khoso

University of Sindh

Rizwan Ahmed

Indus University

Date Written: February 3, 2015

Abstract

Research study is a comparative study of the returns of the two mutual funds which are close ended and open ended mutual fund, quarterly data of Net Asset Values NAV of both the funds from 2008-2012 (inclusive) was taken and the return on those NAVs was calculated through natural log (LN) function. First the normality test of Kolmogorov-Smirnov and Shapiro-Wilk indicates that the data is not normally distributed as P<0.05 in both the test; also the descriptive test verified the results of normality test as the Kurtosis and Skewness values were greater than the normal values (Kurtosis 28.11 > 3) and (Skewness 2.81 > 0), both the tests indicates that data is not normally distributed and which we cannot apply parametric test of mean equality which is T-TEST but due to abnormal nature of the data non-parametric test of mean equality which is MANN-WHITNEY U test was followed. Results of the test states that NAV return of Open end mutual fund (Median = 0.0078, U = 98.78) did not differ significantly from NAV return of Close end funds (Median = 0.0048, U = 98.21), z = −0.071. We fail to reject the null hypothesis that there is no difference between the NAV returns of Open end and Close end fund as p >.05.

Keywords: Close end mutual fund, Net Asset Value, Open ended mutual fund

JEL Classification: C12, C14, G12

Suggested Citation

Ahmad, Nawaz and Khoso, Imamuddin and Raheem, Ahmed, A Comparative Study of NAV (Net Asset Value) Returns of Open-Ended and Close-Ended Mutual Funds in Pakistan (February 3, 2015). International Journal of Information, Business and Management, Vol. 7 No. 1 Feb., 2015, ISSN 2076-9202. Available at SSRN: https://ssrn.com/abstract=2696888

Nawaz Ahmad (Contact Author)

RTS (Research, Trainings, and Solutions) ( email )

9th Nishat Lane, DHA 6
9th Nishat Lane, DHA 6
Karachi, Sindh 75500
Pakistan
00923009292422 (Phone)

Institute of Business Management (IoBM) ( email )

Plot # 84
Korangi Creek
Karachi, Sindh 75190
Pakistan

HOME PAGE: http://www.faculty.iobm.edu.pk/staff/nawaz-ahmad/

Imamuddin Khoso

University of Sindh ( email )

Jamshoro, Sindh
Pakistan

Ahmed Raheem

Indus University ( email )

ST-2D, Block 17, Gulshan-e-Iqbal
Gulshan-e-Iqbal
Karachi, Sindh 75300
Pakistan

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