Performance Evaluation of US Mutual Funds – a look at ‘Growth Funds’, ‘Growth and Income Funds’ and ‘Income Funds’ -

Abstract

This study evaluates the performances of domestic equity mutual funds in the US. Three performance measurement models act as tools in measuring the performances. Using monthly data from January 1993 to December 2012, it is found that funds, on average, underperform the benchmark across the entire period. Moreover, it is also shown that amongst the three style categories of funds, ‘Growth Funds’ report the lowest average abnormal performance as compared to ‘Growth and Income Funds’ and ‘Income Funds’.