Document Type
Article
Publication Date
2-26-2024
Abstract
This study investigates the risk-adjusted performance of energy equity mutual funds across a 23-year period, employing the Cumulative Wealth Index (CWI) to gauge their long-term performance relative to benchmark indices. Despite inherent volatility due to the energy sector’s cyclical nature, these funds consistently outperformed benchmarks based on monthly returns, showcasing resilience amid market fluctuations. However, challenges emerged during the COVID-19 pandemic, with notable improvements post-vaccination. Utilizing a multi-factor model, the research highlights the interconnectivity of energy equity mutual funds with broader market movements and systemic factors. Despite their primary focus on the energy sector, these funds exhibit sensitivity to larger market trends, rendering them susceptible to market dynamics. Additionally, an assessment of portfolio manager expertise reveals some proficiency in security selection post-vaccinations against COVID-19.
Recommended Citation
Malhotra, Davinder K. and Nippani, Srinivas, "Assessing Energy Mutual Funds: Performance, Risks, and Managerial Skills" (2024). School of Business Faculty Papers. Paper 6.
https://jdc.jefferson.edu/sbfp/6
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 License.
Language
English
Comments
This article is the author's final published version in International Journal of Financial Studies, Volume 12, Issue 1, 2024, Article number 20.
The published version is available at https://doi.org/10.3390/ijfs12010020.
Copyright © 2024 by the authors