Portfolio optimization of equity mutual funds - Malaysian case study

We focus on the equity mutual funds offered by three Malaysian banks, namely Public Bank Berhad, CIMB, and Malayan Banking Berhad. The equity mutual funds or equity trust is grouped into four clusters based on their characteristics and categorized as inferior, stable, good performing, and aggressive...

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Main Authors: Kilicman, Adem, Sivalingam, Jaisree
Format: Article
Language:English
Published: Hindawi Publishing Corporation 2010
Online Access:http://psasir.upm.edu.my/id/eprint/16254/
http://psasir.upm.edu.my/id/eprint/16254/1/16254.pdf
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author Kilicman, Adem
Sivalingam, Jaisree
author_facet Kilicman, Adem
Sivalingam, Jaisree
author_sort Kilicman, Adem
building UPM Institutional Repository
collection Online Access
description We focus on the equity mutual funds offered by three Malaysian banks, namely Public Bank Berhad, CIMB, and Malayan Banking Berhad. The equity mutual funds or equity trust is grouped into four clusters based on their characteristics and categorized as inferior, stable, good performing, and aggressive funds based on their return rates, variance and treynor index. Based on the cluster analysis, the return rates and variance of clusters are represented as triangular fuzzy numbers in order to reflect the uncertainty of financial market. To find the optimal asset allocation in each cluster we develop a hybrid model of optimization and fuzzy based on return rates, variance. This was done by maximizing the fuzzy return for a tolerable fuzzy risk and minimizing the fuzzy risk for a desirable fuzzy return separately at different confidence levels.
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spelling upm-162542016-03-31T08:11:48Z http://psasir.upm.edu.my/id/eprint/16254/ Portfolio optimization of equity mutual funds - Malaysian case study Kilicman, Adem Sivalingam, Jaisree We focus on the equity mutual funds offered by three Malaysian banks, namely Public Bank Berhad, CIMB, and Malayan Banking Berhad. The equity mutual funds or equity trust is grouped into four clusters based on their characteristics and categorized as inferior, stable, good performing, and aggressive funds based on their return rates, variance and treynor index. Based on the cluster analysis, the return rates and variance of clusters are represented as triangular fuzzy numbers in order to reflect the uncertainty of financial market. To find the optimal asset allocation in each cluster we develop a hybrid model of optimization and fuzzy based on return rates, variance. This was done by maximizing the fuzzy return for a tolerable fuzzy risk and minimizing the fuzzy risk for a desirable fuzzy return separately at different confidence levels. Hindawi Publishing Corporation 2010 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/16254/1/16254.pdf Kilicman, Adem and Sivalingam, Jaisree (2010) Portfolio optimization of equity mutual funds - Malaysian case study. Advances in Fuzzy Systems, 2010. art. no. 879453. pp. 1-7. ISSN 1687-7101; ESSN: 1687-711X http://www.hindawi.com/journals/afs/2010/879453/abs/ 10.1155/2010/879453
spellingShingle Kilicman, Adem
Sivalingam, Jaisree
Portfolio optimization of equity mutual funds - Malaysian case study
title Portfolio optimization of equity mutual funds - Malaysian case study
title_full Portfolio optimization of equity mutual funds - Malaysian case study
title_fullStr Portfolio optimization of equity mutual funds - Malaysian case study
title_full_unstemmed Portfolio optimization of equity mutual funds - Malaysian case study
title_short Portfolio optimization of equity mutual funds - Malaysian case study
title_sort portfolio optimization of equity mutual funds - malaysian case study
url http://psasir.upm.edu.my/id/eprint/16254/
http://psasir.upm.edu.my/id/eprint/16254/
http://psasir.upm.edu.my/id/eprint/16254/
http://psasir.upm.edu.my/id/eprint/16254/1/16254.pdf