Volatility of funds’ benchmark indices on the performance of domestic growth oriented equity mutual funds in India

Indians always wanted a hand-in-hand supporter and an advisor for parking their hard-earned money. Direct investments Capital Market are like a stranger to the Indians. This led to the sprouting of mutual fund industry. Mutual fund are professionally managed investment funds which pool money from many investors and invest them in shares and securities. The investment decision of mutual fund is professionally managed by the fund managers. With those investments the mutual fund generates returns which are passed back to the investors. The volatility of the Indian Share Market has a greater influence over the performance of mutual fund investments. This made the researcher to analyze the effect of Funds’ Benchmark Indices over the net asset values of mutual funds. The researcher evaluated the performance of fifty-one equity mutual funds operating in India. Overall, the findings revealed thatthere is significant impact of Funds’ Benchmark Indices on the net asset value of the selected equity mutual funds.