A Comparative Study of NAV (Net Asset Value) Returns of Open-Ended and Close-Ended Mutual Funds in Pakistan

Research study is a comparative study of the returns of the two mutual funds which are close ended and open ended mutual fund, quarterly data of Net Asset Values NAV of both the funds from 2008-2012 (inclusive) was taken and the return on those NAVs was calculated through natural log (LN) function. First the normality test of Kolmogorov-Smirnov and Shapiro-Wilk indicates that the data is not normally distributed as P<0.05 in both the test; also the descriptive test verified the results of normality test as the Kurtosis and Skewness values were greater than the normal values (Kurtosis 28.11 > 3) and (Skewness 2.81 > 0), both the tests indicates that data is not normally distributed and which we cannot apply parametric test of mean equality which is T-TEST but due to abnormal nature of the data non-parametric test of mean equality which is MANN-WHITNEY U test was followed. Results of the test states that NAV return of Open end mutual fund (Median = 0.0078, U = 98.78) did not differ significantly from NAV return of Close end funds (Median = 0.0048, U = 98.21), z = −0.071. We fail to reject the null hypothesis that there is no difference between the NAV returns of Open end and Close end fund as p >.05