Performance of the Indian mutual fund industry: a study with special reference to growth schemes

Abstract

Mutual funds serve those individuals inclining to invest but lack the technical investment expertise. Funds mobilized by the industry had grown by 57% and AUM by 14% during 1997-2006. Analysis of performance of seven growth schemes should that, all the sample schemes outperformed the market in terms of absolute returns without adequate returns to cover total risk. All the three risk-adjusted performance measures showed underperformance of sample schemes. Investors and fund managers agreed that, investing in mutual funds were less risky. Goodwill was the main criterion of choosing mutual fund organization. Investors were moderately satisfied with the performance and services offered by the industry.