An Exploration of the Assessment of Risk and Return within SBI's Equity Mutual Funds

Abstract

The mutual fund industry in India originated in 1963 with the establishment of the Unit Trust of India, a collaborative effort between the Indian government and the Reserve Bank of India. In recent times, mutual funds have gained substantial prominence, not only on a global scale but notably within India as well. Mutual fund companies are consistently introducing innovative strategies to appeal to a broader customer base. This research paper seeks to offer a comprehensive understanding of mutual funds, their diverse array of investment options, and an in-depth analysis of the associated risk and return factors like mean return, standard deviation and Sharpe ratio. Additionally, it focuses on the performance evaluation of specific SBI Equity Mutual Fund schemes, which play a significant role in the Indian economy. In summary, this paper explores the historical evolution of the mutual fund sector in India, the contemporary trends in the industry, and the specific focus on SBI Equity Mutual Fund schemes in terms of their performance and impact on the Indian financial landscape. Keywords: Risk, Return, SBI equity mutual fund, financial landscape, Standard deviation, Sharpe ratio.