PERFORMANCE ANALYSIS OF MUTAL FUNDS IN INDIA: A COMPARATIVE STUDY OF EQUITY BASED SCHEMES

Abstract

The performance evaluation of Mutual Funds is a vital matter of concern to the fund managers, Investors, and the Researchers alike. The core competence of a company is to meet the objectives and need of its investors and to provide optimum return for their risk. This study tries to find out the risk and return allied with the mutual funds. Mutual fund industry has experienced a tremendous growth in the past two decades. Increase in the number of schemes with increased mobilization of funds in the past few years notes the importance of Indian mutual funds industry. To fulfil the expectations of millions of retail investors, the mutual funds are required to function as successful institutional investors. Proper assessment of various fund performance and their comparison with other funds helps retail investors for making investment decisions.The present paper investigates the performance of top 20 equity based mutual fund schemes (ranked on the basis of AUM size) for the period from April 2013 to March 2016 (three years). Daily NAV of different schemes have been used to calculate the returns from the fund schemes. BSE-sensex has been used for market portfolio. The analysis has been made using the risk-return relationship and Capital Asset Pricing Model (CAPM). The performance of the selected schemes were evaluated on the basis of Sharpe, Treynor, and Jensen’s measure whose results will be useful for investors for taking better investment decisions.