Performance Evaluation of Select Mutual Fund Schemes in India-A Comparative Study

Abstract

Mutual funds are collective savings and investment vehicles where savings of investors are pooled together to invest for their mutual benefit and returns distributed proportionately. The objective sought to he achieved by Mutual Fund is to provide an opportunity for lower income groups to acquire good return without much difficulty. They cater mainly to the. needs of the individual investor in a manner that provides a regular income, growth, safety, liquidity and diversification opportunities. So, there is a need for the mutual fund investors to evaluate the performance of schemes before deciding on investments. Past performance is taken as reference by many investors. The present paper investigates the performance of 9 funds from three different companies for the period from April 2007 to March 2012 (five years). Yearly NAV of different schemes have been used to calculate the returns from the fund schemes. NSE-Nifty has been used for market portfolio. The historical performance of the selected schemes were evaluated on the basis ofSharpe, Treynor, and Jensen's measure whose results will be useful for investors for taking better investment decisions. The results of various statistical measures are tabulated and consolidated to get a comprehensive picture of the performance of the selected schemes.