A Comparative Study on Performance Analysis o...

A Comparative Study on Performance Analysis of Mutual Fund Schemes with Reference to Axis Mutual Funds and SBI Mutual Funds

Author Name : Saurav Bhansali, Rajdeep Nag

ABSTRACT

A mutual Fund is a financial instrument that pools the savings of a number of investors who have a common financial objective. It is a platform for all investors to participate in capital market with professional fund houses and managements irrespective of the amount of fund they want to invest. The mutual fund is most suitable for an investor who may not have the time and professional competence for analyzing risk and return across sectors and companies at a relatively low cost. The mutual fund industry in India is growing rapidly and it can be reflected from the growth in number of fund houses, increases in number of new schemes and increases in the Asset under management of the entire fund house. The wide variety of schemes floated by the mutual fund companies give a wide choice for the investors. Among wide variety of schemes, equity schemes can be considered as a substitute for direct stock market investment. In this research paper, an attempt is made to analyze the performance of growth-oriented equity schemes of two mutual fund house on the basis of return and risk analysis. The analysis was derived by conducting various financial tests like average return, Sharpe ratio, standard deviation and expense ratio. The data was collected from the respective schemes’ website and from the website of AMFI. The study conducted provides sufficient information of risk and return associated with funds’ performance which will ultimately help the investors to choose the best mutual fund generating maximum return with minimum risk.

Index Terms: Mutual fund, Risk, Return, Investments, Equity Schemes