Mutual Funds
IRJC
International Journal of Marketing, Financial Services & Management Research Vol.1 Issue 7, July 2012, ISSN 2277 3622
A COMPARATIVE ANALYSIS OF MUTUAL FUND SCHEMES IN INDIA
DR. SARITA BAHL*; MEENAKSHI RANI**
*Associate Professor, P.G Department of Commerce and Management, Arya College, Ludhiana. **Research Scholar, Department of Commerce, Kurukshetra University, Kurukshetra, Haryana.
ABSTRACT The present paper investigates the performance of 29 open-ended, growth-oriented equity schemes for the period from April 2005 to March 2011 (six years) of transition economy. Monthly NAV of different schemes have been used to calculate the returns from the fund schemes. BSE-sensex has been used for market portfolio. The historical performance of the selected schemes were evaluated on the basis of Sharpe, Treynor, and Jensen’s measure whose results will be useful for investors for taking better investment decisions. The study revealed that 14 out of 29 (48.28 percent) sample 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 risk free rate. Results of Jensen measure revealed that 19 out of 29 (65.52 percent) schemes were showed positive alpha which indicated superior performance of the schemes. KEYWORDS: Jensen measure, Mutual funds, performance evaluation, Sharpe measure, Treynor measure. ______________________________________________________________________________ I. INTRODUCTION Many of the financial instruments mutual fund is one of the most attractive financial investment instrument that plays a vital role in the economy of a country. Mutual fund schemes provides new opportunities for investors. Mutual fund Industry was introduced in India 1963 with the formation of Unit Trust of India. During the last few
International Journal of Marketing, Financial Services & Management Research Vol.1 Issue 7, July 2012, ISSN 2277 3622
A COMPARATIVE ANALYSIS OF MUTUAL FUND SCHEMES IN INDIA
DR. SARITA BAHL*; MEENAKSHI RANI**
*Associate Professor, P.G Department of Commerce and Management, Arya College, Ludhiana. **Research Scholar, Department of Commerce, Kurukshetra University, Kurukshetra, Haryana.
ABSTRACT The present paper investigates the performance of 29 open-ended, growth-oriented equity schemes for the period from April 2005 to March 2011 (six years) of transition economy. Monthly NAV of different schemes have been used to calculate the returns from the fund schemes. BSE-sensex has been used for market portfolio. The historical performance of the selected schemes were evaluated on the basis of Sharpe, Treynor, and Jensen’s measure whose results will be useful for investors for taking better investment decisions. The study revealed that 14 out of 29 (48.28 percent) sample 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 risk free rate. Results of Jensen measure revealed that 19 out of 29 (65.52 percent) schemes were showed positive alpha which indicated superior performance of the schemes. KEYWORDS: Jensen measure, Mutual funds, performance evaluation, Sharpe measure, Treynor measure. ______________________________________________________________________________ I. INTRODUCTION Many of the financial instruments mutual fund is one of the most attractive financial investment instrument that plays a vital role in the economy of a country. Mutual fund schemes provides new opportunities for investors. Mutual fund Industry was introduced in India 1963 with the formation of Unit Trust of India. During the last few
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