A Study on the Performance of Select Open-Ended Diversified Equity Funds in India

Abstract

Mutual fund industry in India has witnessed stupendous quantitative growth, particularly since 1990s, in terms of Assets Under Management (AUM) which grew manifold since 1964, the year of inception of mutual fund business in India. In this study, twenty four open-ended diversified equity funds of seven Asset Management Companies (AMCs) have been chosen which are in existence for more than ten years as on 30th September 2012. The main objective of the study is to analyze the performance of the chosen funds in the line of risk- return parameters. The study is based on secondary. Measures such as average annualized return, annualized standard deviation, Sharpe Ratio, Treynor Ratio, Jensen alpha, beta, r-squared, and return from "Systematic Investment Plan" (SIP) are employed for the purpose of judging the overall performance of the chosen funds with respect to their benchmarks and the performance of most of the funds is found to be satisfactory.