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Performance Evaluation of Public & Private Mutual Fund Schemes in India

Author(s):

Prof. Dr. K N Sheth , Director, Faculty of Management, SSESGI, Rajpur, Gujarat, India; Himani Mittal, Assistant Professor, Faculty of Management, SSESGI, Rajpur, Gujarat, India; Falguni Prajapati, Assistant Professor, Faculty of Management, SSESGI, Rajpur, Gujarat, India

Keywords:

Mutual Fund, Performance Evaluation, Treynor Ratio, Sharpe Ratio, Jensen Ratio

Abstract

This days mutual funds are the most studied areas in developed and developing countries due to its efficient and effective role in reducing risk and increasing return by managing the funds professionally. Mutual funds are investment vehicle that pools together funds from small retail investor to purchase stocks, bonds or other securities. It gives the investors flexibility of buying small units of funds. Bounty of mutual funds schemes is available in the market where the investor can put their money. Before investing investors need to know the risk and returns associated with the individual mutual fund schemes and whether their performance is commensurate with the market performance or not, to base their decision upon. In this paper an attempt is made to evaluate the performance of selected public and private mutual fund schemes on the basis of five years quarterly NAV for the period of 1st January 2008 to 31st December 2012. The paper also compares the results of public sector sponsored schemes with that of private sector schemes. Sharpe, Treynor and Jensen measures were used for the evaluation of mutual fund schemes. Risk-return analysis is also done using the standard deviation and beta as the measures of risk which are further used to compare the performance of selected funds with respect to market. It was found that the sample mutual fund schemes performed either well or their performance was appropriate with the market’s performance. When public and private mutual funds were compared, the private mutual fund companies were found much more beneficial rather than public mutual fund companies for the investors to invest in.

Other Details

Paper ID: IJSRDV5I40185
Published in: Volume : 5, Issue : 4
Publication Date: 01/07/2017
Page(s): 194-198

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