Department of Financial Studies, University of Delhi, South Campus, New Delhi
This paper examines the performance of select mutual funds by using five performance measures: (a) Rate of Return Measure, (b) Sharpe Ratio, (c) Treynor Ratio, (d) Jensen Differential Return Measure, and (e) Fama's Components of Investment Performance. The study uses weekly NAV data for 73 mutual fund schemes from April 1, 1994 to March 31, 1999. The empirical results indicate a mixed performance of sample schemes. Though the performance of some private sector funds was superior there is no conclusive evidence to suggest that the performance of mutual funds was better than the relevant benchmark. It is also observed that the sample schemes are not adequately diversified. The risk and return characteristics of schemes are not in conformity with their stated objectives.
