Analysis Of Risk and Return in Terms of Microeconomic Factors of Selected Mutual Funds Schemes in India.

Abstract

Investing in mutual funds, among other financial instruments, ensures that investors are exposed to the least amount of risk and receive the highest possible return. As a result, it became critical to research the mutual fund performance. This study attempts to assess the performance of selected Indian mutual fund schemes using a risk-return analysis, Treynor's ratio, Sharp's ratio, and Jensen's measure based on their daily net asset value during 2011-2021. The data comes from the Association of Mutual Funds in India's website. For analysis, 27 equities funds were chosen. The results show the majority of mutual fund schemes in the sample were able to meet investor expectations by providing excess returns over projected returns based on both premium for systematic risk and total risk. The data suggest that in selected funds, Nippon India Large Cap Fund, Canara Robeco Bluechip Equity Fund, and Invesco India Large-cap Fund had the highest returns. Many portfolio managers recommend consumers invest in large-cap mutual fund schemes during times of crisis for these reasons. The analysis yields a positive result from all the schemes. The Treynor ratio, Sharpe ratio, and Jensen's ratio were used to evaluate the past performance of the selected mutual fund schemes, and the results will be useful to current and future potential investors in making informed investment/financial decisions.