Performance evaluation of distinct Categories of Mutual Funds

Meghna Jain; Ms. Sonam Budhrani

Abstract

A mutual fund is only such an investment which is offering diverse types of products which could satisfy all the kinds of investors based on the risk and return level. For creating more wealth, it is especially important that investors in India prefer not only the traditional investment options like fixed deposit savings account etc. They should move ahead towards Mutual Funds, which is offering many products which are based on different risk levels of the customers. The equity Mutual Funds involve a lot of which may or may not be successful in the long term. The highest AUM is of ICICI Prudential Bluechip Fund. The highest standard deviation is of Taurus Large cap Equity Fund and lowest Sharpe ratio is of Taurus Large cap Equity Fund. For calculation of Sharpe Ratio, risk free rate that has been considered is 4.09% and the risk-free rate has been considered based on 91-day T-Bill. As represented in the study, among Flexi cap mutual funds, the highest 1-month return is of Quant Active Fund, highest 3-month return is of HDFC Flexi Cap Fund, highest 6-month return is of Quant Active Fund, highest 1 year return is of HDFC Flexi Cap Fund and highest 3 years return is of Quant Active Fund.