Risk and return analysis of selected Balanced Mutual funds

Shivani Agrawal; meghna jain

Abstract

Mutual fund is regarded as an important form of investment as it becomes difficult for the investors to understand about where or when to invest and hence the professional managers make it easy for the people to gain benefits from the mutual funds. The investors are provided different options while investment and the ratio of investment between equity and debt also varies, based on which the customers plan out their investment in the type of fund which suits them. The mutual funds are distributed through the brokers and the customers could easily select mutual funds of their own choice. There is risk and return difference in the type of mutual funds. The returns of selected Mid-cap mutual funds have been evaluated based on Historical Returns wherein returns for a period of 1 week, 1 month, 3 months, 6 months, 1 year, 2 year, 3 years, 5 years and YTD have been considered. Based on Annual returns, the return for 2019 – 2023 has been considered. Treynor's Ratio, Jenson's Alpha, Sharpe's ratio, standard deviation, and beta have all been used to assess the risk of particular mutual funds. The balanced funds are such wherein investment is made in Equity and debt in a balanced manner, hence people invest in this fund for getting benefits of equity and debt.