The Performance of Open-Ended Funds in Vietnam

Abstract

In this paper, Jensen's Alpha is used to measure the performance of 12 open-ended funds operating in Vietnam during the period from 2013 to 2021. The model found out αi and βi. After risk is taken into account, the alpha shows whether or not the portfolio performance outperforms the market. Jensen's Alpha is interpreted in terms of the sign of alpha as well as the statistical significance of the result. Having a positive αi with statistically significant indicates higher performance compared to the market, whilst having a negative αi with statistically significant indicates lower performance. If the value of αi is statistically insignificant, the portfolio has performed similarly to the market. Pooled model regression of panel data analysis is applied to compare such funds’ performance to the VN30index and then use time-series analysis to calculate for an individual fund. The results show that, on average, these 12 open-ended funds are unable to outperform the VN30 index, but only one fund operates better than the VN30 index.