Mutual funds: Performance evaluation of select debt schemes

Abstract

Mutual funds are one of the important financial instruments for the financial sector. Mutual funds provide an opportunity for investors to invest in a variety of diversified portfolio investments and also help to achieve their financial objectives. The mutual fund industry has been responding veritably fast in the Indian financial market in the last ten years as it provides further promising results to investors. The Indian mutual fund industry has over the last year seen a dramatic improvement in terms of volume as well as the quality of the product and service offerings in recent times. The study measures the performance of Mutual Fund (MF) schemes in India with special reference to public and private debt mutual fund schemes. A total of 16 schemes were selected from the four asset management companies. The evaluation was attained by applying various financial tools like Rate of Return, Standard Deviation, Beta, Sharpe Ratio, Jenson Ratio, and Treynor Ratio. The data contained comes from the various authorized websites and factsheets of funds. When public and private mutual funds were analogized, the private mutual fund companies were commencing much better than public mutual fund companies for the investors to invest in.