Quantitative Measurement of Islamic Mutual Funds in Pakistan "Using Two Indexes KMI 30 and KSE 100"

In this research study we used 16 Islamic open ended mutual funds that are operates by different fund managers of Pakistan. Research founded that returns of funds are not to their level of risk. Performance of funds managers is too poor by the help of results obtain from four model of our study Sharpe ratio, Reward to volatility, Jensen's alpha and M-squared (M²). We firstly calculated average monthly returns, net asset value and market index value and founded that performance of Islamic Mutual Funds industry is too poor. Conclusion of this research study is that the Islamic mutual fund is not performing against KMI 30 index and KSE 100 index and Islamic mutual funds is not attractive and their diversification ability is too poor.