Date of Award
Doctor of Management (DMgt)
John Pourdehnad, PhD
Larry M. Starr, PhD
DK Malhotra, PhD
The growth in the US mutual fund industry has remained slow, despite the recent upside blow in the overall market attributed to the global pandemic. The mutual fund industry is still observing a fee crisis and slower yearly growth, but the compression occurs short-term with more drastic results. Mutual funds that would serve these “new normal” requirements need to be future-fit. In this dissertation, I focus on the following questions: Do sector mutual funds add value to investors` portfolios by contributing a better risk-adjusted rate of return? Is there evidence of performance consistency? Do portfolio managers require different skills in portfolio management mutual funds? Should mutual fund portfolio managers opt for interactive planning as compared to predictive modeling for managing the mutual fund?
The study found that the benchmarked index outperformed the sector mutual fund and provided a better risk-adjusted return. This suggests that investors would be better off using a benchmarked index rather than a sector mutual fund. Additionally, the manager's experience does not seem to impact the return from a sector mutual fund, indicating that investors do not need to worry about who is managing their mutual fund. Finally, collective aspects of sector mutual funds (e.g., portfolio returns and performance) are two different scenarios, so investors should be careful when comparing these metrics.
Kazmi, Syed A., "Evaluating the Performance of Sector Mutual Funds" (2022). Full-Text Theses & Dissertations. 29.