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The last decade has seen a tremendous growth in the mutual fund industry. Today the Indian market is flooded with more than a thousand mutual fund schemes, promising better returns than others. Mutual Funds are essentially investment vehicles where people with comparable investment objective come together to pool their money and then invest accordingly. With the increase in domestic savings and development in employment of investment through markets, the need and scope for mutual fund operation has improved immensely. But about 75% people are still investing in Post office, MIS and bank deposit because of the lack of awareness in rural areas. For saving investors’ money, it becomes necessary to evaluate the performance of mutual fund portfolio so that investors can make their investment decisions rationally. This evaluation would help in checking the main idea of “putting all eggs in different baskets” behind mutual funds and analyzing that the idea is good for investors or not. This study of Performance evaluation would help the investors to choose the best schemes available and will also help the AUM’s in better portfolio construction and can rectify the problems of underperforming schemes. Hence in this paper an attempt has been made to evaluate the performance of index funds among SBI & UTI (public sector) and HDFC & ICICI (private sector) on the basis of monthly returns compared to benchmark returns over the period of 3 years and to appraise the performance of different category of funds using risk adjusted measures as suggested by Sharpe, Treynor and Jensen.
Keywords:
Mutual Fund, Index Funds, Risk-Return, Performance Evaluation
Cite Article:
"Performance Evaluation of Index Schemes: A Comparison of Public and Private Sector Mutual Funds in India", International Journal of Science & Engineering Development Research (www.ijrti.org), ISSN:2455-2631, Vol.3, Issue 11, page no.35 - 42, November-2018, Available :http://www.ijrti.org/papers/IJRTI1811007.pdf
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000204860
ISSN:
2456-3315 | IMPACT FACTOR: 8.14 Calculated By Google Scholar| ESTD YEAR: 2016
An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 8.14 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator