Operational and Portfolio Efficiency Analysis of Commodity Mutual Funds

Abstract

The present study explains the data envelopment analysis two stage model framework for analysing the performance of mutual funds with respect to operational and portfolio execution efficiency. This method is used to analyse the selected sample of commodity mutual funds (CMFs). At the initial level a one-input/one-output setup, whereas at the next level a multi-input/one-output option is applied. From the results it is observed that CMFs are in inefficient in both their operational and portfolio execution processes. It is observed that they are operated in a very inefficient manner. The effectiveness of portfolio execution is directly linked to the efficiency of operational administration. Hence it is much required for the selected CMFs to prioritize their operational strategies to assure their success in the industry. The study framework has the chance of improving the performance and competitive advantages of not only Commodity Mutual Funds, but also other types of funds.