Performance Evaluation of Nepalese Mutual Fund

  • Binod Ghimire Assistant Professor, Tribhuvan University, Nepal,
  • Ramesh Pant MBS Scholar, Tribhuvan University, Nepal
Keywords: Mutual fund, Sharpe's ratio, Performance evaluation, Nepal


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.