Performance Evaluation of Nepalese Mutual Fund

Abstract

This study analyzes the financial performance of mutual fund on account of risk adjusted performance evaluation techniques: Sharpe's ratio. This study incorporates the examination of the effect of market index return, Treasury bill rate and systematic risk on performance. As in Sharpe's ratio, market index return is taken as dependent variables; on the other hand, Treasury bill rate and systematic risk are taken as predictor variables. Findings imply that mutual funds in Nepal have not satisfactory performance based on Sharpe's ratio. Likewise, study further exposes that market index return, systematic risk are significant and positively influences the Sharpe's ratio where as treasury bill is significant and negatively influence on the Sharpe's ratio performance of the Nepalese mutual funds. Hence, market index return, Treasury bill rate and systematic risk have major effect on the performance based on Sharpe's ratio in Nepal