Performance evaluation of bank sponsored mutual funds: the case of the Indian market

Mutual fund is an important segment of the financial system. It is non-fund based special type of institution which acts as an investment conduit. Mutual funds have emerged as dynamic financial intermediary between the suppliers and the users of money. Wide varieties of schemes are being launched by mutual fund players which often confuse the investors. In this complex scenario, this study of Performance evaluation would help the investors to choose the best schemes available and will also help the AUM's in better portfolio construction and can rectify the problems of underperforming schemes. The objective of the study is to evaluate the performance of different bank sponsored mutual fund schemes in India on the basis of returns and comparison with their bench marks and also to appraise the performance of bank sponsored mutual find schemes using risk adjusted measures as suggested by Sharpe, Treynor and Jensen. The study revealed that most of the bank sponsored mutual funds have a positive return during the period of study and majority of the schemes outperformed the market.