A NOVEL METHOD TO ANALYZE RISK AND PERFORMANCE ANALYSIS FOR MUTUAL FUNDS

Abstract

Mutual Funds investments have attracted attention and interest in the recent times as it is considered to be safe and has provided investors with less risk at returns. The Indian market, in a similar manner, has witnessed the diversified growth of mutual funds throughout many years. From 2016 onwards, the Indian market is thronged with more than 2,500 mutual fund plans, and each plan is expected to bring higher returns than its peers. For ordinary investors, this is a challenge to choose the best investment portfolio, so it is essential to analyze the performance of these funds. In understanding and analyzing the historical performance of mutual funds, it does not assure future performance, but this may give some insight into the performance of the fund under different market conditions. In this research work, we analyzed the data and solved several research problems with the use of R Studio tool. These include measuring the performance of specific plans based on risks and returns, and compare the performance of these selected plans with the benchmark index to see if the plan's performance is better than the benchmark. We also introspect which parameters affect the schemes in a particular way based on performance and propose strategies for investing in mutual funds. Therefore, our findings are of great relevance to the investment public.