AN ENQUIRY OF THE INDIAN EQUITY MUTUAL FUNDS

Abstract

In this paper an attempt has been made to analyze performance of Equity mutual funds industry against the risk free rate and bench mark return over the five years. The sample consist of 7 growth oriented open ended equity mutual funds schemes from 5 public and 2 private mutual fund companies. Results are tested through risk return analysis, coefficient of variations, Jensen’s measure, and Treynor’s ratio, sharpe’s ratio, Fama measure & regression analysis. The data used is monthly closing NAV’s and benchmark market index closing for the study period of April 2010 to March 2015.the risk return analysis revealed that out of 10 schemes 3 have underperformed the market , 7 are found to have lower total risk than the market and all the schemes have given returns higher than risk free rates. The Treynor ratio of all the mutual funds scheme over performed the benchmark market index and Sharpe ratio of 3 mutual funds scheme underperformed the benchmark market index. The result of regression analysis suggests that benchmark market return index has statistically significant impact on mutual fund return at 5% level of significance.