The efficiency of an investment fund is one of the main components in evaluating the performance of the fund. This study seeks for introducing and comparing risk and performance evaluation ratios. The paper is aimed at testing the worked out ratios and at distinguishing between the best ones for the purpose of evaluating the performance of Lithuanian mutual funds. Scientific studies show that a standard deviation, alpha, beta, Sharpe and Treynor ratios are mostly employed for identifying the performance of mutual funds that are also compared with their benchmark index to establish if these funds are outperformed and if is it worth paying management fees to investment banks for managing mutual funds. Historical data were selected for the period from 2012-01-02 to 2013-10-15 analysing the prices of monthly funds. The paper points out the areas of a practical application of the proposed model for investment fund valuation, which may not only provide valuable outcomes for practitioners but also may inspire further research on this article.

This Article examines performance of mutual funds, which are available for Lithuanian investors in Lithuanian financial market to invest in. Lithuanian mutual funds market is very new comparing with the global financial markets. Majority of mutual funds in Lithuania are imported by Scandinavian banks as well as internationally managed, only few mutual funds are managed in Lithuania. The analysis includes Lithuanian and non-Lithuanian mutual funds in Lithuanian financial market. Period from 2008 to 2016 is analysed in order to get significant results. This study aims to analyse the performances of mutual funds in Lithuanian market on the basis of risk and return criteria using different tools such as Sharpe ratio, Treynor ratio, and Jensen Alpha and others. Also there is analysed variation of these performance measures during selected time period, and discovered periods, when mutual funds perform above and below than market indices.