1School of Management, KL University, Vaddeswaram, Guntur (Dt.), Andhra Pradesh, India.
2Dept. of Management Science, Swarna Bharathi Institute of Management Science, Pakabanda, Khammam - 2, Andhra Pradesh, India.
A mutual fund is the ideal investment vehicle for today's complex and modern financial scenario. Markets for equity shares, bonds and other fixed income instruments, real estate, derivatives and other assets have become mature and information driven. Small investors face a lot of problems in the share market due to lack of professional advice and lack of information. Mutual funds have come as a much needed help to these investors. Mutual funds which have been operating for greater than five years and performing during the period of study (i.e. 2003 – 2007) are selected for the present research. The sample for the study consists of 102 equity mutual funds comprising 56 equity diversified funds, 21equity index funds, 18 equity tax savings funds, seven equity technology funds. The performance of selected funds is evaluated using average rate of return of fund, standard deviation, Risk/Return, Sharpe Ratio, Treynor ratio and Jensen ratio. Benchmark comparison is also made as it indicates to what extent the fund managers were able to produce better performance of managed portfolio compared to the market or index portfolios.
Benchmark comparison, Sharpe Ratio, Treynor ratio and Jensen ratio
