Performance Evaluation and Selection of Equity Mutual Funds

Author Name : Ms. Nancy Raichel S, Dr. Smitha V Shenoy

ABSTRACT

This paper aims at the performance evaluation and selection of equitymutual funds. It analyses the performance of the mutual funds in terms of risk and returns across various sectors, building portfolios on the basis of returns. This study includes 77 funds from 17 different categories or the sectors related to equity Mutual Funds, analyzing the top 5 performing funds from all the sectors. Data from the past 5 years (from 2015 to 2019) or from the period of existence of the fund (incase the fund or the scheme is started after 2014). Analyzing the performance of the mutual funds by computing required ratios and tests helps in taking anbetter investment decisions.

The objectivesofthestudywere(a) Analysing the performance of the mutual fund in terms of return and risk. (b) Performance evaluation of Mutual funds using Sharper’s, Treynor’s and Jensen’s Ratio. (c) Comparing the expense ratio of selected Equity Mutual funds and (d) Building the portfolio of mutual funds on the basis of returns.

Key Words: EquityMutual Funds, Performance Evaluation, Return and Risk, Mutual Fund portfolios, Fund Style