A Performance Analysis of Select Public and Private Mutual Funds

Abstract

Investors growing interest in mutual funds is evidenced by the fact that newlineover the last some year investment is growing tremendously in mutual funds. newlineThe significance of this investment has heightened interest in performance newlineevaluation by both practitioners and academic researchers. Although claims newlineof superior performance are often used to market mutual funds to investors, newlineacademic studies of mutual fund performance find that as a group the fund newlinemanagers fail to create value for investors. newlineIt is a known fact that Mutual Fund Institutions in India have grown newlinesignificantly during the last decade. These institutions certainly play a newlinecrucial role in the Indian economy. The rapid growth of Mutual Funds has newlinecompelled us to take a deeper look into their Investment Policy and newlineperformance of Mutual Funds, taking into account the expectations of newlineinvestors, ability of Fund Managers and market timings of the Portfolio newlineManagers. This would enable investors to assess how much returns has been newlinegenerated by Portfolio Managers and what risk level was assumed in newlinegenerating such funds. Similarly, Fund Managers would be able to identify newlinetheir fund performance over the time. The study on performance evaluation newlinealso provides a mechanism for identifying strengths and weaknesses of Fund newlineManagers in the investment process in different market conditions, which newlinehelp them to take corrective actions. Many studies have been conducted to newlineanalyses the performance of Mutual Funds using different models and newlinevariables. Only few studies have evaluated the performance of Mutual Funds newlineby using more variables for the purpose of predicting accurate result. Hence newlinethe present study is an attempt to analyze performance analysis taking into newlineiii newlineconsideration the various performance indicators of selected Mutual Fund newlineSchemes by using different variables. newlineOBJECTIVES OF THE STUDY: newlineIndian mutual fund industry is featured by a plethora of mutual fund newlineschemes consisting of varying portfolio mix, investment objectives and newlineexpertise of professional fund management.