Many previous studies have emphasized the performance of mutual funds, but few articles have analyzed fund managers’ abilities. Moreover, mutual-fund managers have two methods for obtaining excess returns, including timing ability and selective ability. Therefore, in this study, the performance of sixty-eight equity funds are evaluated by examining the fund manager’s timing and selective abilities. Furthermore, the time series of common financial data often exhibit a volatility-clustering phenomenon; hence, GARCH (general autoregression conditional heteroskedasticity) effects are also considered to analyze its influence. The major findings indicate that mutual funds have timing abiltity, but do not have selective ability. Also, trade-off relationships exist between timing and selective abilities. The GARCH effect does not affect the ranking of a fund’s performance; however, the results become more significant. Therefore, the GARCH effect should be incorporated into the evaluation of the timing and selective abilities of mutual-fund managers.