Asian Journal of Research in Banking and Finance
Year : 2011, Volume : 1, Issue : 3
First page : ( 94) Last page : ( 111)
Online ISSN : 2249-7323.

Investigating performance of equity-based mutual fund schemes and Comparison with Indian equity market

Loomba Jatinder, Assistant Professor

JK Business School, Gurgaon, Haryana, India.

Online published on 14 December, 2011.

Abstract

In the backdrop of liberalization and private participation in the Indian mutual fund industry, the challenge to survive and retain investor confidence has been a prime are of concern for fund managers. For small investors who do not have the time or the expertise to take direct investment decision in equities successfully, the alternative is to invest in mutual funds. The performance of the mutual fund products become more complex in context of accommodating both return and risk measurements while giving due importance to investment objectives. The main objective of this paper is to evaluate the performance and growth of Indian mutual funds vis-à-vis the Indian equity market. For the purpose of this study, Franklin Templeton Large Cap Equity mutual funds have been studied over the time period of 15^th Sept 2010 to 15^th Sept 2011 (1 year). Performance evaluation of mutual funds is one of the preferred areas of research where a good amount of study has been carried out. The area of research provides diverse views of the same. The analysis has been made on the basis of Sharpe ratio, Maan Whitney's U-Test and Kruskal Wallis Test. The overall analysis finds that Nifty returns outperformed Franklin Templeton Large Cap Equity Scheme returns. Kruskal Wallis H-test was applied to know whether the returns significantly differ or not and the results indicated that the returns of schemes don't differ significantly.

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Keywords

Mutual Fund, Sharpe Ratio, Stock Returns.

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