Performance evaluation of liquid debt mutual fund schemes in India

The majority of Indian investors want to yield the maximum returns on their investment by taking the less risk. The safest way of investment is banks and post offices but with lower interest rates the attractiveness of thses is low whereas in mutual funds the portfolio manager tries to reduce the risk and yields higher rate of returns through professional and sound portfolio management. In this paper an evaluation has been made between the performance of liquid debt mutual fund schemes with CCIL T Bill Liquidity whether the funds are outperforming or underperforming. To attempt these purposes the study has relied on secondary data. This study aims to examine the performance of open-ended liquid debt mutual funds in India. To evaluate the performance a sample of 11 liquid debt mutual fund schemes have been selected on the basis of yearly returns compared to benchmark returns. The analysis of these schemes is based on average, standard deviation, beta, co-efficient of determination (R-squared) and also analyzed with the help of risk adjusted performance measures like Treynor ratio, Sharpe ratio and Jensen ratio.