Performance evaluation analysis with various techniques for A-type mutual funds

Under the assumption of perfect market there are no frictions in the economy and cost of capital of the firms equals to investor returns. Nonetheless in reality markets are not perfect and transaction costs which stems from frictions cause cost of capital and investor return to be different. In an attempt to minimize transaction costs financial intermediaries come into stage. Mutual funds are one of the most important financial intermediaries whose assets constitute an important part of countries' GDP. Large portfolios managed by mutual funds have lead researchers to question mutual fund performance. Especially in developed markets there are so many studies that examine that topic from different perspectives by using different methods. Nonetheless there is limited number of studies which examines fund performance from perspective of emerging markets. This study attempts to investigate mutual fund performance for Turkish mutual funds for the period between 2003Q1-2013Q4. It is noteworthy to mention that data availability is a big constraint in measurement of mutual fund performance especially for emerging markets, like it is the case in this study. In the empirical part different types of methods that exist in worldwide literature are used. In conclusion mutual fund managers are not found successful as they are expected.