A comparative performance analysis of bank muscat & Oryx Mutual Fund in Oman

This study aims to examine the comparative performance of Bank Muscat and Oryx Mutual Fund in Oman. To evaluate the performance of fund a sample of six years has been selected on the basis of monthly returns compared to benchmark returns. For this purpose statistical tools average, standard deviation, beta, co-efficient of determination, systematic and unsystematic risk and the risk adjusted performance measures suggested by Treynor (1965), Sharpe (1966) and Fama's (1972) measures are employed. The return analysis reveals that Oryx schemes performed better as compared to Bank Muscat scheme when evaluate to the benchmark. However, the Bank Muscat scheme is more volatile as compared to the Oryx scheme. The beta value of both the schemes is less than one which indicates that these are defensive schemes in nature and less sensitive to the market forces. It is found that Oryx fund has performed better according to Sharpe and Bank Muscat scheme has outperformed the benchmark according to Treynor measure. On the basis of R², Bank Muscat fund is well diversified whereas Oryx scheme is not well diversified which increased the unsystematic risk. Oryx fund is found to be good in earning better returns either adopting marketing or in selecting under priced securities whereas Bank Muscat fund was not.