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ISLAMIC INVESTMENT FUNDS: AN ANALYSIS OF RISKS AND RETURNS

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Given that it is hard to believe mutual fund investors experience little over half the returns delivered by their funds, let us illustrate the above phenomenon with a hypothetical example: In Year 1, mutual fund "Red Hot" is small, has 10,000 shareholders, and returns 35%. As a result of its good performance, Red Hot attracts new money and, in Year 2, has 50,000 shareholders. As a consequence of its larger size, however, the fund delivers only 5% in Year 2....
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ISLAMIC INVESTMENT FUNDS: AN ANALYSIS OF RISKS AND RETURNS

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