Performance Evaluation of Mutual Funds in India A Comparative Study

Abstract

The development of the economy and growth of a nation is greatly influenced by the newlinedevelopment of a large and sound capital market. The efficiency of a capital market, newlinehowever, largely depends upon the existence of active and efficient financial newlineintermediaries in the system. Financial intermediaries are the entities that act as newlinemiddlemen between two parties in a financial transaction. They transfer funds from newlinethe savers to the borrowers, i.e., direct resources from the idle to the productive newlinesector, thereby accelerating investment activities in the economy. Hence, mobilization newlineof finance takes a prime position in the agenda of economic growth. newlineConstant efforts on the part of the investors for better returns and minimum risk newlineopened up a wide diversity of opportunities which resulted in financial services being newlinerecognized as a separate activity itself. An average investor cannot take investment newlinedecisions independently due to lack of sufficient knowledge of portfolio management, newlinecomplexity of investment process and fear of high risks involved. Thus, financial newlineintermediaries help the desired investors by offering its services. newlineWith growing emphasis on the adoption of a system based on the capital market, the newlinerole of mutual fund has gained great importance. Mutual fund has emerged as a strong newlinefinancial intermediary and is playing a vital role in bringing stability to the financial newlinesystem. The active role played by mutual fund in promoting economic development newlinecan be seen not only in terms of their presence in the savings market but also in the newlinemoney and capital market by mobilizing savings and channelizing these funds into newlineproductive investment. newline