A Study on Performance Evaluation of Balanced Investment Schemes Offered by Selected Asset Management Companies

Abstract

Investing in mutual funds and diversifying the investment portfolio are two critical strategies for achieving long-term financial success. Mutual funds pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other assets. This diversification helps reduce the impact of individual stock or bond price fluctuations, thus mitigating market risk. Mutual funds are managed by experienced fund managers who conduct extensive research and analysis. These professionals make informed investment decisions, saving investors from the need to constantly monitor the market and individual securities. Diversification allows investors to balance risk and return according to their risk tolerance. By spreading investments across different asset classes and risk levels, individuals can achieve their desired risk-return profile. By harnessing the expertise of professional fund managers and diversifying across various assets, investors can navigate market fluctuations with confidence while working toward a more secure financial future. It also contributes to the field of finance by offering a comprehensive analysis of the performance of balanced mutual fund schemes, employing a range of evaluation tools, and emphasizing the critical interplay between risk and return in the investment landscape. Keywords: Balanced mutual fund scheme, Performance evaluation, Asset Management Companies (AMCs), evaluation metrics.