Evaluating the Effectiveness of Risk Management Strategies in the Indian Mutual Fund Industry

Abstract

The study will employ a mixed-method approach, combining quantitative analysis of historical fund performance data with qualitative assessment of risk management processes and policies adopted by mutual fund companies. By examining key risk metrics such as volatility, beta, and sharpe ratio, the research aims to assess the impact of risk management strategies on the overall performance of mutual fund schemes in the dynamic and rapidly growing Indian mutual fund industry. As with any investment vehicle, mutual funds are subject to various risks that can impact investor returns, prompting mutual fund companies to employ various risk management strategies to mitigate these risks. This study seeks to evaluate the effectiveness of these strategies by analyzing different techniques employed by mutual fund companies, with the goal of identifying best practices for minimizing the impact of various risk factors on fund performance. The findings will provide valuable insights for both mutual fund companies and investors, aiding in understanding the effectiveness of risk management strategies in mitigating investment risks. By identifying and promoting best practices in risk management, this research aims to contribute to the development and sustainability of the mutual fund sector in India. Keywords: Risk management, mutual fund, market stability, investment risk