Performance of active portfolio management in emerging markets with reference to “India

The purpose of the study to understand the performance of active portfolio management in emerging market and to explores the role of emerging market in investment portfolio. It was found that emerging markets, thought that their stand alone risk is very high compared to developed markets provide diversification benefit due to low correlation of their returns with developed markets. Thus, it becomes imperative that the concept is studied specifically in the context of the emerging economies of the world. The current study will also focus on comparing the performances of both the management strategies (Active and Passive strategy) in the specific context of the emerging markets and determine which of the two is most suitable for an investor to be able to outperform the market as well as generate maximum net result. This paper also examine whether Indian fund manger follow an active portfolio strategy or passive portfolio strategy. The study focuses on performance evaluation of selected actively managed India Funds.