Evaluation of Mutual funds Using TOPSIS Method

Abstract

. Particularly in the final two decades of the 20th century, the mutual fund business has experienced exponential growth. Accurate financial performance ratings allow for comparisons between investment managers and make it easier for average investors to choose top managers. Fund managers must put in more effort to please investors and management as a result of increased market competitiveness. Therefore, it is important for both fund managers and investors to regularly evaluate the performance of mutual funds. According to the most recent data, this sector has 6.8 trillion rupees in assets under administration. More than a thousand mutual fund plans are currently available on the Indian market, and some of them offer higher returns than others. to evaluate the performance of mutual funds that are equity-based In writing this article, an effort was made. Between April 1997 and April 2012, 45 projects from two private and two public sector organizations were examined (15 years). Analysis was conducted utilizing the capital asset pricing model and the risk-return relationship (CAPM). The top performers, according to the total analysis, are HDFC and ICICI, followed by UTI and LIC, who perform the worst. This resulted in a reduced predicted return in the risk-return relationship. The results also show that some programs do not perform well; these projects faced the problem of diversification. In the MCDM TOPSIS method, the Top 100 fund is the worst scheme in the data set, and in the data set Sensex plan is the best scheme.