The performance of Malaysian equity funds for the period January 2001 - December 2005 / Lailly Nor Halisa Ahmad Tugi

This research paper aims to empirically examine the performance of Malaysian equity funds based on the specific types of funds, namely growth funds and balance funds. Using a sample of 19 unit trust funds for the period from January 2001 until December 2005, the study analyzes the funds risk-adjusted performance, selectivity and market timing abilities of fund managers and the level of diversification achieved by these funds. It is also to show that all types of funds are out-perform the market or under-perform the market. To investigate the fund risk-adjusted performance of unit trust fund can be measure by Jensen's model (1968). The fund manager market timing skills and selectivity performance are measures using Treynor and Mazuy (1966) model because enables investigation of the behavior of systematic risk decisions by fund managers. The degree of diversification of all types of funds is significantly high.