Assessment Of Mutual Fund Performance Using Distance Based Multi - Criteria Decision Making Techniques - An Indian Perspective
DOI:
https://doi.org/10.33516/rb.v44i1.17-38pKeywords:
Mutual Fund Performance, Equity Fund, Multi-Criteria Decision Making (MCDM), Evaluation based on Distance from Average Solution (EDAS), Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS), Entropy Method for Criteria Weight.Abstract
With integration of financial market, and many initiatives taken by Govt. of India like Digital India and financial inclusion, the Indian capital market has witnessed significant changes over last few years. Mutual Fund industry has grown significantly in the last decade attracting a large number of customers. However, Mutual Fund’s (MF) performance depends on several criteria. From an investor’s point of view, it is imperative to assess performance of MFs based on appropriate criteria to form a portfolio. In this study, we have assessed performance of some selected Equity Funds (EF) under a set of criteria based on risk and return in a Multi-Criteria Decision Making (MCDM) framework using two distance-based techniques such as TOPSIS & EDAS. Entropy method has been applied for determining criteria weight. Spearman’s rank correlation test has been conducted and it has been found that the rankings by two methods are quite consistent.Downloads
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