Comparative Study On The Performance Of The Islamic And The Conventional Unit Trust With The Market Portfolio

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Date
2003-03
Authors
KADER SULTAN, MOHAMAD HARIS
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Abstract
This thesis is concerned with investigating the investment performance by comparing the Conventional Unit Trust and the Islamic Unit Trust with the market portfolio by ranking the performance of both the unit trusts for the period of 1990 to 2001. We will investigate whether the fund managers from both the unit trusts could predict security prices correctly. Besides that we will also investigate whether there is a consistency in the performance of both the unit trusts. The research has been divided into three periods, which are pre-economic crisis, economic crisis and post-economic crisis. The methods used were developed by Jensen (1968) and Sharpe (1966). From the findings, we could see that both the Islamic and the Conventional Unit Trusts do not perform better than the market portfolio for all the three periods and also the overall period from 1990 to 2001. Fund managers in general are unable to predict security prices as there is no consistency in the performance of both the trusts funds.
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Comparative Study On The Performance Of The Islamic , And The Conventional Unit Trust With The Market Portfolio
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