PERFORMANCE OF MUTUAL FUND IN NEPAL

Abstract

This dissertation studies the performance of mutual fund schemes in Nepal issued by unique fund managers and has performed over four consecutive years and aims to identify the best performing funds among seven selected schemes. The study also analyzes the influence of the NEPSE Index’s movements on the financial performance of these selected mutual funds. To assess the performance, various statistical and financial tools have been implemented, including the Sharpe ratio, Treynor’s ratio, Jensen Alpha, holding period return, Net Asset Value (NAV), and correlation coefficient. The findings of this research study will provide valuable intuition into the factors influencing mutual fund performance in Nepal, particularly in relation to the impact of market fluctuations, as reflected by the NEPSE Index. Additionally, the study intends to provide useful information for investors, fund managers, and policymakers, contributing to improved decision-making and optimizing mutual fund performance within the context of Nepal's evolving capital markets.