Performance evaluation of equity oriented large cap mutual funds in India (A study with reference to select asset management companies)

Investors with their saving can participate in investment game either directly or indirectly. To say in more specific, investors with huge savings at their disposal and capabilities invest in their own capacity can direct or indirect avenues of investment. In this context, mutual funds comes to the rescue of those investors who want channelise their savings indirectly. Over a period of time, mutual fund emerged as a gate-way for small investors to enter into big companies with their small investment. To do so, the present study has examined five Asset Management Companies (AMC's) are found operating equity oriented large cap schemes. Hence, researcher has purposively chosen one scheme from each AMC's over a period of 06 years from 2007–08 to 2012–12. Accordingly, funds have been ranked by taking into account their performance measures using standard deviation (σ), beta (β), co-efficient of determination (R²), Treynor's, Sharpe, Jensen, Fama and M² measures. Thus, a fund that scored the highest of the average of the said parameters has been ranked as the best and same method has been adopted in ranking the rest of the funds.