A Study on Performance of Evaluation of Mutual Fund in India

Abstract

The present paper investigates the performance of open-ended, growth-oriented equity schemes for the period from April 2012 to March 2016 of the transition economy. The daily closing NAV of different schemes has been used to calculate the returns from the fund schemes. BSESensex has been used for the market portfolio. The historical performance of the selected schemes was evaluated based on Sharpe, Treynor, and Jensen's measure whose results will be useful for investors for making better investment decisions. The study revealed that 14 out of 30 mutual fund schemes had outperformed the benchmark return. The results also showed that some of the schemes had underperformed; these schemes were facing the diversification problem. In the study, the Sharpe ratio was positive for all schemes which showed that funds were providing returns greater than the risk-free rate. Results of the Jensen measure revealed that 19 out of 30 schemes were showed positive alpha which indicated superior performance of the schemes.