Performance appraisal of equity schemes of indian mutual funds

In this paper an attempt is made to evaluate the performance of growth oriented equity schemes of Indian mutual funds on the basis of monthly returns compared to benchmark returns. For this purpose, risk adjusted performance measures relative performance index (RPI), Jenson ratio, Treynor's ratio, Sharpe ratio and Fama & French ratios are employed. The findings of the study suggest that majority of the mutual funds outperformed the market benchmarks. It is found that, Sahara mutual fund and Birla Sunlife outperformed the others in all the evaluation techniques employed. The results suggest that although the funds outperformed the benchmarks but even then the Indian fund managers are required to put more efforts for diversifying their portfolios as they are not diversified properly.