Browsing by Author "Adimado, Kofi Selasi"

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    Performance of mutual funds in Ghana: a case study of the epack fund (1999-2004). programme: Master in Business Administration Department: Economics and Industrial Management
    (2005-11-14) Adimado, Kofi Selasi
    In this dissertation a comprehensive assessment of existing mutual fund performance models is presented. The search for the most suitable model to measure mutual fund performance is addressed using four different methods to characterize or measure performance: The arithmetic average of the monthly returns for each fund over the sample period; The Standard deviation of the monthly returns for each fund over the sample period; The Sharpe ratio; Treynor’s measure and the Jensen’s alpha. The added value of this study lies in the fact that it is a pioneer study attempting to assess performance of mutual funds in Ghana using the conventional methods of measurement outlined above using database provided by Databank and the Ghana Stock Exchange. The term Mutual funds, which is one of the most recent investment vehicles in Ghana’s Capital Market has still not been fully ingrained into the investment culture in our country. With Ghana currently having five mutual funds to its credit, it is essential that one knows what a mutual fund is as well as understand how its performance is measured. Though there was an overwhelming response of the general public to these mutual funds, the returns posted by the mutual funds at the close of 2004, were not commensurate with investor expectation. With an average existence of six months, these funds posted returns as low as 3.9%, as compared to an 8.9% return on the 182-day treasury bill for the same period. 2005, being a new year would be a test case for all the mutual funds in Ghana in that all the funds would have the benefit of a full year to deliver attractive returns to the investor.