Performance Evaluation and Growth of Selected Islamic Mutual Funds Schemes: an Analytical Study

Abstract

The most popular way to invest is through mutual funds in today's world. Profitability is particularly high in the Saudi financial market for mutual fund companies. Investors prefer Islamic mutual funds over non-Islamic mutual funds because they believe they are more secure and risk-free. This research aims to vary the customer preferences toward Islamic mutual funds, which offer higher returns within the Saudi economic market. All these will be identified as victimization sure key facts. With the assistance of those critical facts, a capitalist will analyze dissimilar mutual funds and put his cash in an exceeding fund that fits his exposure perception. This study evaluated the Mutual fund returns using, Maximum returns, Minimum returns, and Average returns compounded by the annual growth rate. The standard deviation and risk per average return (standard deviation/average return) have been used to evaluate the risk and return of the funds. Furthermore, fund managers assess the fund’s performance in terms of –Performance for the existing year (YTD) of the fund. As a result of the research, it was discovered that the overall performance of mutual investments in Saudi Arabia's economic market was better than expected for all the selected funds.