Optimizing Fund Performance: A Communication Systems Approach to Data Mining in Large- Cap Equity Mutual Funds

Abstract

Mutual funds represent a secure and technologically driven conduit for Indian investors to engage with the dynamic Indian financial markets. These professionally managed funds strategically allocate investments across a spectrum of securities, including equities, bonds, government securities, and gold, leveraging cutting-edge information technology infrastructure for seamless operation and optimization. Within this landscape, performance emerges as a pivotal metric, driving the flow of savings into these digitally enabled funds, indicative of investors' confidence and expectations in the realm of data-driven decision-making. The core objective of this paper is to construct a robust mutual fund performance evaluation model utilizing the Statistical Package for the Social Sciences (SPSS), a sophisticated software platform renowned for its advanced analytics and predictive modeling capabilities in the information technology domain. The work focused specifically on equity mutual funds, this study meticulously examines top-rated funds within the large-cap category, drawing insights from a comprehensive validation period spanning the last fifteen years from April 2007 to March 2021. Through the systematic evaluation of various performance metrics within the context of information technology-driven analysis, this model aims to deliver actionable insights and strategic foresight, benefiting researchers, society, and financial analysts alike, while catalyzing innovation and driving positive impacts in the intersection of technology and finance.