Vol. 2 No. 4 (2012): Vol 2, Iss 4, Year 2012
Articles

Risk, return & performance evaluation of selected mutual fund schemes – a study on large & mid cap funds

Krunal K Bhuva
Assistant Professor at Shri Jaysukhlal Vadhar Institute of Management Studies a&b “Shri Vallabh Nikunj”, Nilkanth Nagar, Gate No.2, B/h Bombay Dying, Jamnagar -361005, GUJARAT
Ashok R. Bantwa
Assistant Professor at Shri Jaysukhlal Vadhar Institute of Management Studies “Shri Vallabh Nikunj”, Nilkanth Nagar, Gate No.2, B/h Bombay Dying, Jamnagar -361005, GUJARAT
Published December 30, 2012
Keywords
  • Mutual Funds, Performance Evaluation, Systematic Risk, Unsystematic Risk, Portfolio Return
How to Cite
K Bhuva, K., & R. Bantwa, A. (2012). Risk, return & performance evaluation of selected mutual fund schemes – a study on large & mid cap funds. Journal of Management and Science, 2(4), 348-362. https://doi.org/10.26524/jms.2012.44

Abstract

This paper studies the persistence of mutual fund performance. Academic research often
focuses on fund returns. This study intends to examine the performance of selected Large cap and Mid cap
mutual fund schemes of Indian Mutual fund industry during the study period 2007 to 2011. The performance
of selected schemes is evaluated in terms of average returns, systematic risk, and unsystematic risk and by
using different measures like: Sharpe, Jenson, Treynor and FAMA. After detailed analysis it is found that
except two all the sampled schemes have performed better than market. Supporting the established
relationship of high risk - high return, better performing schemes are exposed to higher risk. The findings also
revealed that majority of the schemes were adequately diversified and about 60% of the schemes were able to
beat the market with help of better stock selection skill of fund managers. Finding from the t-test calculations
shows that there is no difference between returns from large cap mid cap mutual funds in long run. From the
return comparison of mutual funds and market, in 2008 & 2011 large cap are underperforming than market
and in 2011 only mid cap mutual funds are showing less return than market returns.

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