Authors : Dr. Rajendran Jayashree; Rawad Jamal Abdulaziz Alzadjali; Talal Mohammed Ashraf Albalushi

Volume/Issue : Volume 11 - 2026, Issue 3 - March

Google Scholar : https://tinyurl.com/4np8bbjc

Scribd : https://tinyurl.com/y8hkndx9

DOI : https://doi.org/10.38124/ijisrt/26mar463

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.

Abstract : The mutual fund industry in Oman has evolved significantly over recent decades, becoming an essential investment avenue for individuals and institutions seeking diversified, professionally managed financial products. Despite this growth, there remains a need for comprehensive empirical evaluation of fund performance, particularly regarding the risk–return dynamics of bank‑issued mutual funds. This study systematically examines the performance of mutual funds offered by three major Omani banks—Bank Muscat, National Bank of Oman (NBO), and Ahli Bank—comprising of growth funds. The objective is to evaluate their performance through key financial metrics and provide insights into the trade‑off between risk and return across different fund types. The research employs a quantitative methodology, utilizing secondary data extracted from the Muscat Stock Exchange (MSX), financial statements, bank fund fact sheets, and published reports. Growth fund performance is assessed using a five‑year dataset from 2019 to 2024. Performance indicators include average return, cumulative return, annualized return, Sharpe ratio, Treynor ratio, Jensen’s alpha, beta, and standard deviation. These metrics offer a holistic view of both total and systematic risk, as well as the funds’ ability to generate excess returns relative to market exposure. The findings reveal substantial variations in risk–return behaviour among the selected funds. Among the growth funds, Bank Muscat’s Growth Fund demonstrates the strongest long‑term performance with an average annual return of 17.22%. Growth funds, by design, target long‑term capital appreciation and are therefore inherently exposed to higher volatility relative to income‑based instruments. However, the performance differentiation across Omani bank‑issued growth funds has not been extensively analyzed in prior literature. This study addresses this gap by applying key financial metrics— average return, standard deviation, beta, Sharpe ratio, Treynor ratio, and Jensen’s alpha—to assess both total and systematic risk exposure and the funds’ ability to generate excess returns relative to the market. Growth funds present higher return potential but exhibit substantial volatility and inconsistent compensation for market risk. The study concludes that investors should evaluate mutual funds based on risk‑adjusted metrics rather than absolute returns, while fund managers should enhance diversification and adjust portfolio strategies to improve long‑term performance. The findings contribute to the limited literature on Omani mutual funds, providing valuable insights for investors, policymakers, and financial institutions aiming to strengthen the mutual fund ecosystem in emerging markets.

Keywords : Growth Mutual Funds, Risk–Return Analysis, Sharpe Ratio, Treynor Ratio, Jensen’s Alpha, Systematic Risk.

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