The comparison of performance between conventional unit trust fund and Islamic unit trust fund: risk-return trade off under Amanah Mutual Berhad, Cimb Asset Management Berhad And Public Mutual Berhad / Nurul Ayumie Mohd Shariff

Unit Trust is one of the investment tools which pools the savings of the public and managed by professional fund managers or organizations. This paper aims the findings of a study that examined the performance of Islamic unit trust funds in comparison with the conventional unit trust fund under three companies which are Amanah Mutual Berhad, CIMB Asset Management Berhad and Public Mutual Berhad. The objectives of the study were to compare their risks and returns profiles and compare the consistency of performance ranking. The performance of both funds was analyzed over period of 60 months commencing from 2008 to 2012 and evaluated based on the standard performance measures for funds known as Adjusted Sharpe, Treynor and Adjusted Jensen Alpha Indices. The composite index of Kuala Lumpur Stock Exchange (KLSE) represented the market benchmark for the Conventional funds while Islamic funds used Syariah index as proxy for the market. The findings revealed that on average, the conventional funds failed to outperform the performance of Islamic funds