The study was conducted to evaluate the performance of Pakistan mutual funds. Mutual fund is an enterprise that puts resources into a differentiated arrangement of securities. Individuals who pay for shares of a mutual fund are its proprietors or shareholders. Out of the total 119 mutual funds, 89 mutual funds were selected for the sample of the study. The data were collected from financial statement of the Mutual Funds, Mutual Funds Association of Pakistan and State Bank of Pakistan from 1962 to 2015. In this study Capital Assets Pricing Model (CAPM) was used to evaluate the performance of Mutual funds. The Capital Assets Pricing Model (CAPM) shows that money market, equity, sharia, display insignificant effects while the income market, asset allocation, balanced and closed ended shows significant effects.