Assessing Energy Mutual Funds: Performance, Risks, and Managerial Skills

Author(s)/Creator(s)

Srinvias Nippani
Davinder Malhotra

Publication Title

International Journal of Financial Studies

Document Type

Article

Abstract/Description

This study investigates the risk-adjusted performance of energy equity mutual funds across a 23-year period, employing the Cumulative Wealth Index (CWI) to gauge their long-term performance relative to benchmark indices. Despite inherent volatility due to the energy sector’s cyclical nature, these funds consistently outperformed benchmarks based on monthly returns, showcasing resilience amid market fluctuations. However, challenges emerged during the COVID-19 pandemic, with notable improvements post-vaccination. Utilizing a multi-factor model, the research highlights the interconnectivity of energy equity mutual funds with broader market movements and systemic factors. Despite their primary focus on the energy sector, these funds exhibit sensitivity to larger market trends, rendering them susceptible to market dynamics. Additionally, an assessment of portfolio manager expertise reveals some proficiency in security selection post-vaccinations against COVID-19.

Department

Accounting and Finance

First Page

20

DOI

10.3390/ijfs12010020

Volume

12

Issue

1

ISSN

2227-7072

Date

2-1-2024

Citation Information

Nippani, Srinvias and Malhotra, Davinder, "Assessing Energy Mutual Funds: Performance, Risks, and Managerial Skills" (2024). Faculty Publications. 4.
https://digitalcommons.tamuc.edu/busi-faculty-publications/4