Assessment of Equity Large Cap Fund Management in Equity Large Cap by using a Mix Active Portfolio with Passive Portfolio

Abstract

       Mutual fund management must be managed professionally by using the active portfolio in order to earn a higher return than the market for the small investors. This research aimed to assess management by using the security selection under the Treynor-Black, and the mix of active portfolio and passive portfolio under the Sharp ratio and Treynor-Black ratio. This research was quantitative research and the sample group was 105 equity large-cap funds in equity large cap during 60 months (2014-2018) by using the stratified sampling method and the data was analyzed    by using the regression analysis method. The findings revealed that; 1) the mutual fund manager madean effort to diversify all risks efficiently for higher return than the market, the higher the appraisal ratio, the higher the efficiency, and 2) the mutual fund manager who applied the active portfolio would gain more success in management compared with the passive portfolio, even the capital market was efficient under the Efficient Market Hypothesis (EMH). However, most of the equity large cap fund in equity large cap was applied by the active portfolio successfully. In addition, the findings of the research provide an advantage for retail investors in Thailand.  The investors will have to choose mutual funds that are proactive rather than passive in order to earn a higher return than the market.