An Empirical Study on Performance of Diversified Equity Mutual Funds

Author(s) : Ratish Gupta, Shruti Maheshwari
ISSN : 0974 - 497
Year : August 2017 | Volume : 11 | Issue : 3/4

Abstract: Mutual fund in India is four decade old and growing industry. There are nearly 38 active players competing in financial market. Each of these Asset Management Companies offers a wide variety of mutual fund schemes to investors. Therefore, selection of mutual funds becomes a difficult task for investors. Most investors choose a fund based on their investment objective, return expectation and risk appetite. The present study attempts to evaluate risk and return of the various large cap and mid cap funds using financial performance evaluation techniques like Sharpe measure, Treynor, R², Standard deviation and beta. Selected categories of funds were compared to their respective market index, in order to analyze their ability to outperform the benchmark and also to assess risk of investing in these schemes. The outcome of the study suggests that small investors can expect a double digit returns if they keep a healthy ratio of large cap and mid cap funds in their portfolio.


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