Performance Evaluation of Collective Investment Schemes in Ghana

Abubakar Musah

International Journal of Empirical Finance, 2014, vol. 3, issue 4, 202-211

Abstract: The performance of collective investment schemes (CISs) provides investors with an opportunity to know how well or otherwise CISs perform before choosing a CIS to invest in. Raw returns are usually reported by CIS managers in Ghana, mostly in their annual reports. However, higher raw returns do not necessarily reflect superior performance. A risk – adjusted performance measure can better reflect the performance of a collective investment scheme. This study therefore evaluated the performance of ten CISs in Ghana in terms of average returns and on a risk – adjusted basis using the classic approaches – the Sharpe ratio, the Treynor index and the Jensen alpha over the period 2007 – 2012. It also compared the performances of equity, money market and balanced CIS over the period. Data were hand – collected from CIS reports. The results showed that CISs in Ghana have performed poorly over the period 2007 – 2012 across the three performance measures. The balanced funds performed better than the money market and equity CISs.

Keywords: performance evaluation; collective investment schemes; Treynor index; Jensen alpha; Sharpe index (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations:

Downloads: (external link)
http://rassweb.org/admin/pages/ResearchPapers/Paper%204_1497045065.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rss:jnljef:v3i4p4

Access Statistics for this article

More articles in International Journal of Empirical Finance from Research Academy of Social Sciences
Bibliographic data for series maintained by Danish Khalil ().