Financial Analysis on Mutual Fund Schemes in Sbi Mutual Fund
Research paper – Sandeepan Rishi (Research Scholar) commerce
Singhania University, Rajasthan
Dr. Seema Dhawan (Research Supervisor)
Financial Analysis on Mutual Fund Schemes in SBI Mutual Fund
INTRODUCTION
Mutual fund is a trust that pools money from a group of investors (sharing common financial goals) and invest the money thus collected into asset classes that match the stated investment objectives of the scheme. Since the stated investment objectives of a mutual fund scheme generally form the basis for an investor's decision to contribute money to the pool, a mutual fund can not deviate from its stated objectives at any point of time.
Every Mutual Fund is managed by a fund manager, who using his investment management skills and necessary research works ensures much better return than what an investor can manage on his/her own. The capital appreciation and other incomes earned from these investments are passed on to the investors (also known as unit holders) in proportion of the number of units they own.
Although mutual funds and hedge funds can be analyzed using very similar metrics and processes, hedge funds require an additional level of depth to address their level of complexity and their asymmetric expected returns. This article will address some of the critical metrics to understand when analyzing hedge funds, and although there are many others that need to be considered, the ones included in this article are a good place to start for a rigorous analysis of hedge fund performance.
Performance Returns
Similar to mutual fund performance analysis, hedge funds should be evaluated for both absolute and relative return performance. However, because of the variety of different hedge fund strategies and the uniqueness of each hedge fund, a good understanding of the different types of returns is necessary in order to identify them. Absolute returns give the investor an idea of where to categorize the fund in comparison to the more traditional types
Singhania University, Rajasthan
Dr. Seema Dhawan (Research Supervisor)
Financial Analysis on Mutual Fund Schemes in SBI Mutual Fund
INTRODUCTION
Mutual fund is a trust that pools money from a group of investors (sharing common financial goals) and invest the money thus collected into asset classes that match the stated investment objectives of the scheme. Since the stated investment objectives of a mutual fund scheme generally form the basis for an investor's decision to contribute money to the pool, a mutual fund can not deviate from its stated objectives at any point of time.
Every Mutual Fund is managed by a fund manager, who using his investment management skills and necessary research works ensures much better return than what an investor can manage on his/her own. The capital appreciation and other incomes earned from these investments are passed on to the investors (also known as unit holders) in proportion of the number of units they own.
Although mutual funds and hedge funds can be analyzed using very similar metrics and processes, hedge funds require an additional level of depth to address their level of complexity and their asymmetric expected returns. This article will address some of the critical metrics to understand when analyzing hedge funds, and although there are many others that need to be considered, the ones included in this article are a good place to start for a rigorous analysis of hedge fund performance.
Performance Returns
Similar to mutual fund performance analysis, hedge funds should be evaluated for both absolute and relative return performance. However, because of the variety of different hedge fund strategies and the uniqueness of each hedge fund, a good understanding of the different types of returns is necessary in order to identify them. Absolute returns give the investor an idea of where to categorize the fund in comparison to the more traditional types