Mutual Fund provides an opportunity to small investors who have not any information, skills, or knowledge of investing in capital market. The study was aimed to analyze the performance of mutual Funds industry in Pakistan. This research used monthly data of all Open Ended Mutual funds from 2005 to 2017 for generating risk adjusted return through Traditional method (Ratio method) and Modern (Model) method. Ten different portfolios of mutual funds were generated ranging from low performer to top performer in order to understand their behavior to market return. Time series regressions were applied to find the performance of these portfolios measured through above mentionedratios and models. The annual data of 44 mutual funds characteristics such as Fund size, Fund cash flow, Fund family, Expense ratio, Fund age and fund liquidity was collected to find their impact on risk adjusted return of funds. The results showed that thepast performer funds owe performing better presently due to the significance of the lagged alpha in regression.
Key words: Mutual Fund, Open Ended, Fund characteristics, Regression, Performance analysis