PERFORMANCE ANALYSIS OF MUTUAL FUND

Abstract

So many investment instruments are available in today’s financial market. Thus, investors are not sure which instrument provides best return. As per the financial rule of “Do not put all the eggs in one basket” investor needs a diversified portfolio, to minimize the risk. Not every investor possesses the knowledge of getting maximum returns against minimum risk. Therefore, mutual funds are preferable for such investors. But mutual fund market offers number of schemes. Investors need to choose schemes based on their risk-taking capabilities. So, the problem arises that how does a investor find a scheme in the market that provides the best return among all the schemes available in the market. To solve this there are certain model available like Jenson’s model and Sharpe’s model. These models help investor understand that which scheme is most suitable for them. The present study analyses the equity mutual funds. Various asset management companies in India offer these equity mutual funds. Main focus of the present study is to understand the performance of selected equity fund schemes in terms of a risk and return. Analysing financial performance of the selected schemes is the objective of the study, for which various statistical parameters have been used. The conclusion from the is researcher that 10 mutual fund schemes out of 15 selected schemes performed well in a highly volatile market. Researcher recommends that considering risk factor of the mutual fund must be a priority of an investor before investing. The findings from the present study will surely prove to be helpful to investors for their investment decisions.