Performance Evaluation of Public Sector Mutual Funds - Evidences From India

Abstract

Mutual Funds schemes are important investment avenues for small investors to reap economic benefits from the otherwise complex and dynamic capital market. The main objective of this research paper is enlighten small investors in terms of analysing mutual fund schemes for better decision making. This study has considered seven public sector mutual fund schemes over a period of five years. The parameters used are Year on Year Return, Simple Average Return Over the Investment Period, Standard Deviation and Sharpe Index. The results of the study indicate that all public sector mutual fund schemes have given better returns than the risk free returns offered by post office schemes. It was also observed that though standard Deviation and Sharpe Index are statistically superior tools the investor must also incorporate Simple Average Return over the Investment Period for better decisions.