Performance Evaluation of Different Equity Mutual Funds in India

Abstract

India is witnessing a big boom in mutual fund industry. A large no of new players have entered the market. Th e Indian mutual funds industry is witnessing a rapid growth as a result of infrastructural development, increase in personal fi nancial assets, and rise in foreign participation. With the growing risk appetite, rising income, and increasing awareness, mutual funds in India are becoming a preferred investment option compared to other investment vehicles like Fixed Deposits (FDs) and postal savings that are considered safe but give comparatively low returns. Mutual funds are one of the most favoured investment routes for the small and medium investors across the world. Ideally, Mutual funds provide opportunities for small investors to participate in the capital market without assuming a very high degree of risk. In few years Mutual Fund has emerged as a tool for ensuring one's fi nancial well being. Mutual Funds have not only contributed to the India growth story but have also helped families tap into the success of Indian Industry. As information and awareness is rising more and more people are enjoying the benefi ts of investing in mutual funds. Th e study deals with the performance of various Mutual Funds and compares it with the respective bench mark index in the market. Sharpe&Treynor method, beta, standard deviation is used. Th e beta analysis shows that the funds are highly volatile Th e major fi ndings here is that all funds underwent a deep decline in the year 2008 due to fi nancial crisis&in the year 2009 stock market showed a upward trend.