Risk & return analysis of performance of mutual fund schemes in India

Abstract

This paper has investigated the performance of the risk and returns analysis of select mutual funds schemes in India. Their performance is analyzed in comparison to BSE-Sensex and the monthly yield on 91-Day Treasury bills for risk-free rate of return. For testing the performance, the researcher selected growth oriented mutual fund schemes floated by UTI mutual fund during 1st April 2007 to 31st March 2016. This study examines six open-ended equity schemes with growth option being launched by UTI Mutual Funds. Monthly NAV as declared by the relevant schemes have been used in this study for the period of ten years i.e., April 2007 to March 2016. BSE-Sensex has been used for market portfolio. The historical performance of the selected schemes were evaluated on the basis of Sharpe, Treynor, and Jensen’s measure whose results will be useful for investors for taking better investment decisions. From the result, the standard deviation and beta value is also low for UTI Dividend Yield fund. This fund provides highest return for a given unit of risk taken. The investor who needs regular income can invest in UTI Dividend Yield fund.