Comparative Analysis of Equity and Debt Schemes of Top 10 Companies from the Point of View of AUM for the Period 2005–06 to 2011–12

Mutual fund is one of the critical financial services in the financial service industry. It has grown substantially over a period of time. Equity and debt are important asset classes in the mutual fund industry. The present paper studies the co-relation between equity and debt schemes of different asset management companies for three different time periods i.e. boom for the fund industry, the period of crisis and the period of revival, post crisis. The data selected is the NAV on the weekly basis for the period 2005–06 to 2011–12. These NAVs are used to calculate annual returns of debt and equity schemes and an average of annual returns is considered for studying co-relation. Use of Spearman's Rank order co-relation reveals high co-relation between equity and debt schemes. This means increase in equity schemes corresponds to increase in debt schemes and vice versa. Appropriate diagrams, figures and tables are given for better understanding.