A Study on Performance Evaluation of Private Sector Mutual Fund Schemes

Abstract

The present study attempts to evaluate the performance of top 4 private sector mutual fund houses. The sample included a total of 20 growth schemes, 5 each from 4 private sector mutual funds. Benchmark/market index and risk free rate used for comparing the performance. Period of the study is from 2006-07 to 2018-19 i.e. 156 months. For analysis, monthly NAV of selected schemes taken along with monthly closing value of S&P BSE SENSEX, NIFTY 50 as market index and 91 days treasury bills taken as risk free return. Sharpe ratio, Treynor ratio and Jensen measure used for the purpose of risk return analysis. The findings of the study revealed that ICICI Prudential Saving Fund ranked 1st by Sharpe ratio, Nippon India Equity Hybrid Fund ranked 1st by Theynor Ratio, ICICI Prudential Value Discovery Fund ranked 1st by Jensen ratio, ICICI Prudential Value Discovery Fund ranked 1st by Beta. Out of selected 20 schemes 20, 13, 20, 13 schemes outperformed as compared to market index by Sharpe, Treynor, Jensen and Beta Ratios. Overall performance of selected schemes is satisfactory.  

 Keywords: Risk-Return Analysis, Performance, Sharpe, Treynor, Jensen, Beta.