Evaluating The Soundness of Selected Infrastructure Mutual Fund Scheme of State Bank of India from 2010 to 2014

Portfolio means a range of investments. It includes shares, bonds, debentures, and mutual funds. A Mutual fund is a pool of financial resources. It collects the savings from small investors, invest them in Government and other corporate securities and earn income through interest and dividends besides capital gains. It works on the principle of, “Small drops of water make a big Ocean”. (Gordon and Natarajan, 2007). The range of investments gives importance to Mutual funds, which play a significant role in financial intermediation development of capital markets and growth of the financial sector. In the investment market, one fund is not suitable to meet the vast requirements of all investors. Therefore, many types of funds are available to the investor. The main two types of mutual funds are Open-ended and Close-ended funds. This paper evaluates the Open-ended infrastructure mutual fund schemes in State Bank of India.

The infrastructure sector is one of growing sector in Indian economy. The power of Indian economy lies on the development of infrastructure. If we have the proper infrastructure in the form of transport, power, bridges and so on, we can easily reach the target of our GDP in the forthcoming 12th plan. In this paper, an attempt is made to evaluate the performance of SBI infrastructure mutual fund schemes, on the basis of portfolio returns compared to benchmark returns. NAV values were collected from the AMFI India. The data relating to S&P CNX Nifty index is collected from the NSE India. Thus, it is analyzed by using Risk-return analysis, Sharpe's Measure and Treynor's Measure to evaluate the performance. Sharpe Measure and Treynor Measure are often used to rank the performance of the portfolio or mutual fund managers. The study shows that investors have made quite good returns in Mutual Funds.