Performance Evaluation of selected Mutual Funds in India

Abstract

In this paper the performance evaluation of Indian mutual funds is carried out through risk-return analysis, Treynor's ratio, Sharpe's ratio, and a risk-adjusted measure of portfolio performance (known as “Jensen's Alpha”) that estimates the predictive ability of the fund manager and the relationship between mutual fund return and market return is expressed through correlation. The data used is monthly closing and opening NAVs. The source of data is website of Association of Mutual Funds in India (AMFI). Study period is from April 2013 to March 2016. Five Equity mutual fund schemes were used for the analysis. The result of the study is that, UTI Equity Fund, Birla Sunlife Equity Fund, and TATA Pure Equity Fund has shown high returns and low risk and there is a positive relationship between market index and all selected equity linked mutual fund schemes and UTI Equity Fund has an excess positive return than the expected return determined by the fund manager at the initial stage of an investment. So the manager who predicted the expected return of UTI Equity Fund is considered as the best performer.