Performance of select debt oriented mutual funds in the pre and post recession period: An Indian scenario

The US recession as an aftermath of the sub-prime crisis is a major concern for the developing countries. The ramifications of the said crisis are very critical for the concerned economies, particularly for the financial sectors. In India, the real sector was by and large insulated to the spill over effect of subprime crisis while, given the integrated nature of the global financial activities, the financial sector was mostly exposed to it. The present study attempts to investigate the impact of US recession on the performance of the mutual fund industry in India. For this purpose selected debt oriented mutual funds schemes are considered and analysed using the conventional time dummy regression model. The results obtained in this paper point towards a significant adverse effect of the recession on the return of some mutual fund schemes.