DETERMINANTS AND PREDICTION OF MUTUAL FUNDS PERFORMANCE

Abstract

Mutual funds are a very important and distinct segment of the financial market. Mutual funds group money from different investors and spend in different investment foundations like stocks, shares, bonds etc. A specialized fund manager manages these, and earnings are paid in form of dividends. Some arrangements guaranteed fixed returns that are less in risk and some offer dividends built on the market variations and prices. Mutual funds have to be contributed in units and the buying or sale is reliant on NAV (Net Asset Value), taking into respect the exit and entry load aspects into account. There are several funds and arrangements accessible in mutual fund marketplace. People recognize how much risk they can digest and based on that have to choose arrangements. With the rising risk wish, increasing pay, and swelling consciousness, mutual funds in India are attractive and a favored choice to invest in. During the period of last 4-5 years, there has been a visible rise and an intense growth in the Indian MF industry with many private actors adding and bringing worldwide capability to the Indian MF Industry. Risk may be defined as the chance of differences in actual return. Return is defined as the gain in the worth of asset. The return on an investment portfolio aids an investor to assess the financial performance of the investment. This study aims to perform an analysis on some of the mutual fund schemes that are available in India and to provide an insight into the determinants that affect the mutual fund performance in different time span. The study also tries to make use of data analytics to predict the performances of selected mutual fund schemes and to indicate/recommend the schemes which are good investment options for an individual in the short span as well as for the long term.