SONA GLOBAL

MANAGEMENT REVIEW

Performance Evaluation of Selected open Ended Mutual

Fund Schemes In India: An Empirical Study
P. Sathisha, K. Sakthi Srinivasanb
a
Research Scholar, VIT Business School, VIT University, Vellore-632014 | [email protected]
b
Professor – VIT Business School, VIT University, Vellore-632014 | [email protected]

Abstract
Mutual fund is one of the fastest growing sectors in India and it plays significant role in the
Indian capital market. The common investors are facing the problem in choosing the suitable
product among the multiple institutions offering variety of products and multiple options
attached with each product. This research paper is an attempt to evaluate the performance
of selected schemes of different mutual funds in India. The sample consists of 20 schemes
from the selected asset management companies over a study period of 5 years spanning from
January 2010 to December 2014. The performance of selected funds is evaluated by using
statistical tools like average rate of return of funds, standard deviation, beta, correlation,
regression analysis and risk adjusted techniques are used by using Sharpe ratio, Treynor ratio
and Jensen ratio. Benchmark index has also done for the purpose of analysis.

Keywords:Mutual fund, NAV, Schemes, Benchmark Index scenario

Introduction ended schemes. Close ended schemes have

some stipulated time period that is normally
Mutual fund refers to an institution
between 3 to 15 years. Open ended schemes
which is professionally managed by the
are available for subscription during the all
portfolio managers. Asset management
time period. These are further available in
companies mobilize the savings from the
growth, income, balanced, ELSS, FMCG,
small investors and invest in various types
ETF, gold fund and sector specific. Mutual
of securities like shares, bonds, debentures,
fund industry is doing every effort to attract
and commodities in the market based on
the investors to invest in mutual funds by
the fund’s objective. The income earned
offering innovative schemes. Moreover
from these investments will be distributed
Investors have great expectations from
to the unit holders in percentage according
mutual funds.
to the number of units owned by them. The
main advantage of the mutual fund is risk The world’s first mutual fund industry
diversification, offering tax benefits etc. was established in the US. In India, the
Mutual funds offer close ended and open mutual fund industry was established
 Sona Global Management Review | Volume 10 | Issue 3 | May 2016 93

by UTI in the year of 1963 under the act banks and post offices investment is safe
of parliament to serve as an investment but due to lower interest rates, while in
vehicle for small investors. In 1964, UTI mutual fund through professional sound
launched first scheme the unit 64 scheme. fund management. It helps to diversify the
Frequently, UTI offered various schemes to risk and yield high rate of return. In order
the investors were the only option available to analyze the best mutual fund in terms
to the investors for investment in mutual of risk and return, this study is an attempt
fund in India. After 1991, the government to evaluate the performance of selected
of India has permitted to start the bank and mutual fund schemes based on asset under
financial institutions enter into the mutual management.
fund business. From a single player the
number of players has increased to 43 and Scope of the Study
the number of schemes has increased to
more than 723 with managed assets of At present scenario, there are numerous
Rs.1, 245,077.100 Cr. as on June 2015 investment avenues available for investors
in India. The mutual fund companies are in India. However, the investors before go
regulated by securities and exchange board for the investment decision, they should
of India. There are many parties involved analyze the asset management companies in
in the mutual fund companies namely, term of fundamental like economic, industry
Asset Management Company, Sponsoring and company wise. The investors are facing
institutions, Custodians and Trustees. huge problems to select the mutual fund in
terms of risk and return. Hence, this study
The following graph shows the growth would help to the investors to choose the
of assets under management from 1965 to asset management companies according to
2015. the performance of the funds.

Review of Literature

Several studies conducted by the

researcher which is related to the
performance evaluation of mutual funds in
the Indian context.

Source: Association of Mutual Funds in India A study conducted by Kour et al. (2011)
had examined the performance evaluation of
Need of the Study open ended equity mutual fund schemes in
India. They found that, open ended equity
Mutual fund investment is quite popular mutual fund schemes have not performed
among the small and household investors, well against benchmark index. The fund
who mobilize their savings for investment managers are found to be poor in terms of
in capital market. In India, majority of the the ability of market timing and selectivity.
peoples are expecting yield higher return Bahl et al. (2012) also found evidence
on their investment by taking less risk. In
94

that the 14 out of 29 (48.27%) sample mutual funds gave high return and risk also
mutual fund schemes had outperformed less. Jacob et al. (2013) have conducted
the benchmark return in india. The result of comparative study of mutual fund schemes
Treynor measure shows that, 19 out of 29 of State bank of India and Unit trust of India.
schemes had outperformed the benchmark. They found that, the SBI Mutual fund, SBI
It shows that some of the schemes had FMCG fund is the best one in terms of risk
underperformed. Result of Jensen measure and return, as it shows highest sharpe ratio
shows that, 19 out of 29 (65.52%) schemes with higher risk. UTI floating rate fund is
were showed positive alpha which indicated the best one. It shows the highest sharpe
superior performance of the schemes. On the ratio. The investor can invest in these two
other hand, Narayanasamy et al. (2013) came schemes. Pal et al. (2014) examined the
with the evidence that there was a decrease critical analysis of selected mutual funds
in a nifty in the year 2011 which was 1493.15 in India. The study finds that, the HDFC
point. This shows a great fall in the stock Midcap opportunities and quantum long
market growth due to high inflation and term equity outperformed among all other
interest rate. Similarly, a study conducted by schemes. Gupta et al. (2011) examined
Vasantha et al. (2013) examined evaluating consideration of sources of information as
the performance of selected open ended selection criteria in mutual fund purchase
equity diversified mutual fund in India. especially the comparative study of retail
They found that, all the selected fund shows and non retail investors. They found that,
beta value of less than one which means the there is a significant difference between
funds will be less volatile than the market. retail and non retail mutual fund investors
They suggest the investors who have lower with respect factors of advertisement, shows
risk appetite should invest in HDFC Top and published returns. Another comparative
200 fund and Birla sun life front line equity analysis done by Das et al. (2008) have
fund. Zaheeruddin et al. (2013) examined conducted a study on mutual fund Vs Life
the performance evaluation of selected insurance towards the retail investors. It is
financial intermediaries’ mutual funds. They found that, the different investment pattern
found that, the investors can invest in ICICI do not provide the same level of services
fund as it is ranked in the top position as per with respect to age of the retail investors
the Sharpe, Treynor and Jensen. Similarly, in India. Although the investment patterns
Burlacanti et al. (2013) examined the provide more or less the same service, the
performance evaluation of selected equity existing differences depend on the education
funds in India. The study found that, all the level of the investors.Bansal et al. (2012)
equity mutual funds are given higher return came with the evidence that there are three
against the benchmark return in india. They mutual fund schemes are outperformed well
suggest investor’s don’t invest short term against the market namely HDFC liquid
perspective. A study conducted by Revathi fund, L&T liquid fund and Unit Trust of
et al. (2013) had examined performance India bond return according to sharpe ratio.
evaluation of selected bank equity mutual The remaining 9 mutual fund schemes
funds. They found that, when compared underperformed against the market index.
all other equity mutual funds, HDFC
 Sona Global Management Review | Volume 10 | Issue 3 | May 2016 95

Several studies conducted by the the evidence that the performance of five
researcher which is related to the performance mutual funds aggressive and remaining 33
evaluation of mutual funds in the overseas mutual funds are defensive in relation to the
context. bond index and the performance 25 mutual
funds are defensive in relation to the general
Athanasios G. et al. (2005) investigated
index of the Athens stock exchange.
Performance of mutual funds of Greece
equity funds based on the risk and return.
Objectives of the Study
They found, all the equity mutual funds show
positive value in the first three years after that 1. To evaluate the performance of selected
due to fall in the stock market mutual funds mutual fund schemes in India.
show negative return in 2000. Panayiotis et 2. To examine the risk and return
al. (2004) examined performance evaluation relationship of market volatility of the
of the bond mutual funds operating in selected equity diversified mutual funds.
Greece. They found that the performance of 3. To identify the relationship between Net
five mutual funds aggressive and remaining Asset Value and market portfolio return
33 mutual funds are defensive in relation (Index).
to the bond index and the performance 25
4. To analyze the risk adjusted performance
mutual funds are defensive in relation to the
of selected equity diversified mutual
general index of the Athens stock exchange.
funds by applying the measures of
K.Hari et al. (2014) conducted a study on
Sharpe, Treynor and Jensen.
Choice and Satisfaction towards the Mutual
Fund Investment. They found that the return
Research Methodology
factor is considered by the investor and
second factor is investment choice and third The study is descriptive and analytical in
factor is analysis and reference considered nature. For the purpose of research, there is
by the investors. Sundaram (2012) came a comparison among different open ended
with evidence that the last 20 years the mutual fund schemes and also the analysis
mutual fund markets have observed is been done on the overall performance of
tremendously diverse industry. Each country various mutual fund schemes. The study
observed different challenges faced by is purely based on secondary data which
the country historical against political, are collected through the official website
structural and legal framework. Similarly, of Association of Mutual Funds in India,
Otten et al. (2002). also found that When National Stock Exchange and Bombay Stock
compare with asset allocation of European Exchange. To evaluate the performance
and US industry Europeans prefers fixed of open ended schemes, top ten asset
income securities and US investors mostly management companies were selected as per
invested in equity funds. They conclude AUM as on 30th June 2015. Sample consists
four out of five countries (France, Italy, of 20 open ended mutual fund schemes were
Netherland and UK show positive alpha selected for the purpose of study (taking two
and Germany underperformed against the schemes each from the selected AMCs) over
market. Panayiotis et al. (2004 came with a period of five years spanning from January
96

2010 to December 2014.The NSE Nifty mutual fund schemes various measures used
used as a surrogate for market portfolio. in this study such as return, beta, standard
Daily net asset values (NAV) data of the deviation, correlation, regression analysis
schemes and the daily closing values for and risk adjusted performance measures also
the benchmark market index (NSE Nifty) used such as Sharpe, Treynor and Jensen
is used in this study. The daily returns are measures
converted into natural logarithm making
The following table shows that asset
for further analysis. Commercial Bank’s
under management of AMC and selected
Savings bank deposit rate of 4 percent is
Mutual fund schemes
used as a proxy for risk free rate of return.
In order to evaluate the performance of

Table-1: Names of the Asset Management companies, Assets under management

As on June 2015 and Selected Equity Mutual Fund Schemes

Assets under
Mutual Funds management
Mutual Fund Schemes
(as on June 2015)
(Rs. Crore)

HDFC Medium Term Opportunities Fund - Growth

HDFC Mutual fund 165,013 Option
HDFC Capital Builder Fund - Growth Option
ICICI Prudential Mid Cap Fund - Regular Plan -
ICICI Prudential Growth
155.522
Mutual Fund ICICI Prudential Corporate Bond Fund - Regular
Plan - Growth
Reliance Mutual Reliance Income Fund - Growth Plan Growth Option
144,693 Reliance Dynamic Bond Fund-Growth Plan-Growth
Fund
Option
Birla Sun Life Dynamic Bond Fund - Growth -
Birla Sun life Regular Plan
125,502
Mutual Fund Birla Sun Life Income Plus - Growth - Regular Plan
UTI Opportunities Fund-Growth Option
UTI Mutual Fund 92,730
UTI - Equity Fund-Growth Option
SBI Corporate Bond Fund - Regular Plan
SBI Mutual fund 83,693
SBI Blue Chip Fund-Regular Plan Growth

Franklin India Savings Plus Fund - Growth Option

Franklin Templeton
74,312
Mutual Fund
Franklin India Income Opportunities Fund - Growth

IDFC Dynamic Bond Fund – Growth

IDFC Mutual fund 54,498 IDFC-Money Manager Fund-Investment Plan-
Regular Plan-Growth
 Sona Global Management Review | Volume 10 | Issue 3 | May 2016 97

Kotak Mahindra Kotak Flexi-Debt - Regular Plan – Growth

48,077
Mutual fund Kotak Equity Arbitrage Fund – Growth
DSP Black Rock DSP BlackRock MIP Fund- Regular Plan - Growth
36,036 DSP BlackRock Income Opportunities Fund -
Mutual Fund
Regular Plan –Growth
Source: Association of Mutual Funds in India

Table – 2: Return, Standard deviation and Risk of open ended mutual fund schemes

Average daily
Schemes Standard deviation Beta
returns
HDFC Medium Term Opportunities
0.03 0.26 0.002
Fund - Growth Option
HDFC Capital Builder Fund - Growth
0.06 0.88 0.114
Option
ICICI Prudential Mid Cap Fund -
0.07 0.93 0.115
Regular Plan - Growth
ICICI Prudential Corporate Bond
0.03 0.12 0.001
Fund - Regular Plan - Growth
Reliance Income Fund - Growth Plan
0.03 0.25 0.004
Growth Option
Reliance Dynamic Bond Fund-Growth
0.04 0.22 0.003
Plan-Growth Option
Birla Sun Life Dynamic Bond Fund -
0.04 0.12 0.009
Growth - Regular Plan
Birla Sun Life Income Plus - Growth
0.03 0.24 -0.001
- Regular Plan
UTI Opportunities Fund-Growth
0.06 0.89 0.133
Option
UTI - Equity Fund-Growth Option 0.06 0.90 0.141
SBI Corporate Bond Fund - Regular
0.04 0.03 0.007
Plan
SBI Blue Chip Fund-Regular Plan
0.05 0.93 -0.04
Growth
Franklin India Savings Plus Fund -
0.03 0.01 0.001
Growth Option
Franklin India Income Opportunities
0.04 0.09 0.006
Fund – Growth
IDFC Dynamic Bond Fund - Growth 0.04 0.23 0.002
IDFC-Money Manager Fund- Regular
0.03 0.05 0.008
Plan-Growth
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Kotak Flexi-Debt - Regular Plan -

0.03 0.09 0.001
Growth
Kotak Equity Arbitrage Fund - Growth 0.03 0.04 0.003
DSP Black Rock MIP Fund- Regular
0.04 0.24 0.007
Plan – Growth
DSP Black Rock Income Opportunities
0.03 0.06 0.002
Fund - Regular Plan –Growth
Average 0.041 0.329 -
Market 0.04 1.064 1.000

Sources: calculated from NAV

Return and Birla Sun life dynamic bond fund

growth has the lowest standard deviation
The above table exhibits that, the
which means it is comparatively less risky to
ICICI Prudential mid cap fund-growth
the other funds as its returns are less volatile.
performed well in terms of highest returns
ICICI Prudential mid cap fund-growth
(0.07%) of all selected mutual funds. HDFC
(0.93%), SBI Blue chip fund (0.93%), UTI
Capital builders fund growth, Both UTI
- Equity Fund-Growth Option (0.90), UTI
Opportunities fund and equity fund has
Opportunities Fund-Growth Option (0.89%)
earned the next highest returns (0.06%),
gives highest volatility among all the funds
followed by SBI Blue chip fund (0.05%)
which means it is comparatively more risky
etc. ICICI Prudential corporate bond fund,
as its return are more volatile.
Reliance income fund, Birla sun life income
plus fund, Franklin India savings plus fund,
Beta
IDFC Money manager fund, Kotak flexi
debt fund, both DSP Black rock MIP fund Since, Beta value is less than 1 means the
and DSP Income opportunities fund gives fund reacts less than market reaction. All the
lowest returns (0.03%) among all the funds. funds has beta less than 1, which indicates
that the security price will be less volatile
Standard Deviation than the market.

Higher standard deviation means In order to calculate the risk-adjusted

higher risk. Franklin India savings plus returns of investment portfolios the
fund (0.01%), IDFC Money manager fund most important widely used measures of
(0.05%), ICICI Prudential corporate bond performance are:
fund (0.12%), IDFC Dynamic bond fund
(0.23%), DSP Black rock MIP fund (0.24%)
 Sona Global Management Review | Volume 10 | Issue 3 | May 2016 99

Table-3: Risk-Adjusted Performance Measures of Selected Mutual Fund Schemes

Schemes Sharpe ratio Treynor ratio Jensen Alpha

HDFC Medium Term Opportunites Fund -
-0.031 -3.228 0.04
Growth Option
HDFC Capital Builder Fund - Growth Option 0.028 0.212 0.04
ICICI Prudential MidCap Fund - Regular
0.032 0.042 0.04
Plan - Growth
ICICI Prudential Corporate Bond Fund -
-0.058 -7.065 0.04
Regular Plan - Growth
Reliance Income Fund - Growth Plan Growth
-0.035 -2.173 0.04
Option
Reliance Dynamic Bond Fund-Growth Plan-
-0.013 -0.972 0.04
Growth Option
Birla Sun Life Dynamic Bond Fund - Growth
-0.023 -2.972 0.04
- Regular Plan
Birla Sun Life Income Plus - Growth -
-0.030 5.962 0.03
Regular Plan
UTI Opportunities Fund-Growth Option 0.023 0.157 0.04
UTI - Equity Fund-Growth Option 0.021 0.136 0.04
SBI Corporate Bond Fund - Regular Plan -0.125 -5.272 0.04

SBI Blue Chip Fund-Regular Plan Growth 0.016 -0.370 0.04

Franklin India Savings Plus Fund - Growth
-0.185 -3.776 0.04
Option
Franklin India Income Opportunities Fund –
-0.032 -5.024 0.04
Growth
IDFC Dynamic Bond Fund – Growth -0.019 -1.856 0.04
IDFC-Money Manager Fund-Regular Plan-
-0.125 -7.968 0.04
Growth

Kotak Flexi-Debt - Regular Plan - Growth -0.089 -6.422 0.04

Kotak Equity Arbitrage Fund – Growth -0.148 -2.4769 0.04

DSP Black Rock MIP Fund- Regular Plan –
-0.014 -0.465 0.04
Growth
DSP Black Rock Income Opportunities Fund
-0.109 -2.833 0.04
- Regular Plan –Growth
Average -0.045 -1.676 -
Market 0.002 -2.318 -

Sources: calculated from NAVs

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Sharpe Measure equity fund growth (0.136%), HDFC capital

builders fund (0.212%) and ICICI prudential
The above table shows that, the ICICI
mid cap fund (0.04%). The other funds such
Prudential Mid cap fund (0.032%), HDFC
as HDFC medium term opportunities fund
Capital builder fund (0.028%), UTI
(-3.227%), ICICI Prudential corporate bond
Opportunities fund (0.023%),UTI Equity
fund (-7.065%), SBI corporate bond fund
fund growth (0.021%) and SBI Blue chip
(-5.272%) and franklin savings plus fund
fund (0.016%) gives the positive sharpe
(-3.776) etc gives the negative treynor ratio.
ratio which means these funds outperformed
well when compare to the other funds as
per sharpe ratio. Out of these funds all other Jensen Measure
funds gives negative sharpe ratio which
The above table shows that, 19 out of
means these funds not performed well.
20 schemes gives the highest Jensen ratio
(0.04%) and birla sun life income plus
Treynor Measure – growth gives the lowest Jensen ratio
The above table depicts that, the birla (0.03%).
sun life income plus growth gives the highest
treynor ratio (5.961%) followed by UTI
opportunities fund growth (0.157%), UTI
Table 4: Correlation Analysis of selected mutual fund schemes

Correlation

BSE
NSE MID NSE NSE
Mutual fund schemes Nifty Small BSE S&P
CAP 200 JUNIOR
cap
Birla Income Plus 0.16 0.167 0.169 0.177 0.129 0.166
Birla Sun Life Dynamic Bond 0.167 0.199 0.179 0.202 0.182 0.18
DSP Block Rock 0.179 0.129 0.099 0.127 0.124 0.103
DSP MIP FUND 0.735 0.579 0.56 0.571 0.554 0.569
Franklin saving scheme 0.128 0.099 0.064 0.102 0.125 0.125
Franklin income opportunities 0.165 0.119 0.081 0.117 0.118 0.087
HDFC Capital Builder 0.931 0.884 0.949 0.853 0.72 0.9
HDFC income fund 0.154 0.163 0.164 0.164 0.067 0.071
ICICI Corporate Bond 0.164 0.176 0.178 0.087 0.079 0.074
ICICI Mid Cap Fund 0.733 0.895 0.796 0.835 0.82 0.778
IDFC Dynamic Bond fund 0.143 0.15 0.155 0.159 0.114 0.151
IDFC Monthly Return 0.142 0.173 0.148 0.067 0.08 0.056
Kotak Equity Arbitrage Fund -0.339 -0.294 -0.334 -0.269 -0.171 -0.299
Kotak Flexi fund 0.14 0.186 0.154 0.111 0.121 0.101
 Sona Global Management Review | Volume 10 | Issue 3 | May 2016 101

Reliance Dynamic Bond Fund 0.165 0.17 0.175 0.119 0.11 0.105
Reliance Income Fund 0.161 0.163 0.169 0.108 0.096 0.092
SBI Blue Chip Fund 0.964 0.874 0.972 0.882 0.778 0.973

SBI Corporate Bond 0.101 0.167 0.133 0.167 0.189 0.144

UTI Equity fund Growth 0.972 0.891 0.982 0.857 0.729 0.931
UTI Opportunities fund 0.959 0.865 0.965 0.838 0.709 0.916

The above table exhibits, there is a positive correlation between the mutual fund
schemes and selected market indices represented by r. Similarly, It is been observed that there
is a negative correlation between the Kotak arbitrage fund and Nifty (-34% ) followed by NSE
Midcap (-29.4%), NSE 200 (-33.4%), NSE Junior (-26.9%), BSE Mid cap (-17.1%) and BSE
S&P (- 29.9%.).

Table 5: Impact of mutual fund schemes on selected market indices

Coefficients
Un standardized Std.
Independent Coefficients Coef.
Dependent Variable t Sig.
Variable Std.
B Beta
Error
Birla Sun Life
NSE Junior 0.025 0.013 0.232 1.994 0.046
Dynamic Bond
DSP Block Rock Nifty 0.016 0.003 0.280 6.100 0.000
Nifty 0.175 0.007 0.792 26.203 0.000
DSP MIP Fund NSE MID CAP 0.066 0.016 0.306 4.207 0.000
NSE Junior 0.036 0.014 0.172 2.512 0.012
Nifty 0.007 0.002 0.205 4.432 0.000
Franklin Savings
Scheme BSE Small cap 0.005 0.002 0.154 2.160 0.031

Franklin income
Nifty 0.022 0.004 0.258 5.960 0.000
opportunities
Nifty 0.302 0.094 0.369 3.218 0.001
HDFC Capital
NSE MID CAP 0.182 0.031 0.228 5.906 0.000
Builder
NSE 200 0.288 0.114 0.344 2.527 0.012
NSE MID CAP 0.502 0.044 0.589 11.319 0.000
NSE 200 0.411 0.164 0.461 2.503 0.012
ICICI Mid Cap Fund
BSE Small cap 0.31 0.024 0.374 12.657 0.000
BSE S&P -0.278 0.056 -0.301 -4.942 0.000
IDFC Monthly
NSE MID CAP 0.012 0.004 0.255 3.383 0.001
Return
Nifty -0.054 0.028 -0.672 -1.931 0.054
Kotak Equity
Arbitrage Fund NSE MID CAP -0.030 0.009 -0.391 -3.339 0.001
BSE Small cap 0.020 0.005 0.259 3.903 0.000
Kotak flexi Fund NSE MID CAP 0.010 0.003 0.233 3.030 0.002
SBI Blue Chip Fund Nifty 0.9210 0.246 0.332 3.739 0.000
SBI Corporate Bond BSE Small cap 0.002 0.001 0.164 2.297 0.022
102

Nifty 0.773 0.118 0.433 6.527 0.000

UTI Equity Fund NSE MID CAP 0.034 0.005 0.171 7.508 0.000
NSE 200 0.084 0.017 0.398 5.041 0.000
Nifty 1.298 0.203 0.6 6.399 0.000
UTI Opportunities NSE MID CAP 0.028 0.008 0.113 3.515 0.000
Fund
NSE 200 0.062 0.029 0.241 2.158 0.031

The above table depicts that, For every arbitrage fund (2%), Franklin savings
1% increases in the NIFTY value, 92.1% scheme (0.5%) and SBI Corporate bond
increases in SBI blue chip fund followed (0.02%).
by UTI equity fund (77.3% ) HDFC Capital
Similarly, for every 1% increase in
builder fund (30.2%), DSP MIP fund
BSE S&P, it is been observed that there is
(17.5%), UTI opportunities fund (13%),
decline of about 27.8% in ICICI Mid cap
Franklin income opportunities fund (2.2%),
fund. Hence, the p value shows less than
DSP block rock fund (1.6% ) and Franklin
0.05 for all the schemes. Therefore, there is
savings scheme (0.7%). It is also been
significantly impact of selected schemes on
observed that for every 1% increases in the
selected market indices.
nifty, Kotak equity arbitrage fund will fall by
5.4%.
Findings
Accordingly, 1% increase in NSE MID
CAP, it is found that, there is 50.2% increase The ICICI Prudential Mid cap fund-
in ICICI Midcap followed by HDFC Capital growth has yielded the highest average
builder fund (18.2%), DSP MIP Fund (6.6%), returns (0.07%) for the past five years
UTI equity fund (3.4%), Kotak equity when compared with all other funds. All
arbitrage fund (3%), UTI opportunities fund the selected funds show beta value of less
(2.8%) and IDFC Monthly return (1.2%). than 1 which means that the funds will be
less volatile than the market. Franklin India
Similarly, for every 1% increase in savings plus fund (0.01%), IDFC Money
NSE 200, it is been observed that, there is manager fund (0.05%) had the lowest
an increase of 28.8% in the HDFC Capital standard deviation when compare with all
builder fund followed by UTI equity fund other funds. The ICICI Prudential Mid cap
(8.4%) and UTI opportunities fund (6.2%). fund (0.032%) HDFC Capital builder fund
(0.028%), UTI Opportunities fund (0.023%),
With respect to for every 1% increase in
UTI Equity fund growth (0.021%) gives the
NSE JUNIOR, there is an increase of 3.6%
highest sharpe ratio which means these funds
in DSP MIP fund followed by Birla sun life
are outperformed well as per sharpe ratio.
dynamic bond (0.7%)
Out of 20 schemes, 5 have outperformed
Accordingly, for every 1% increase in well against the market namely Birla sun life
BSE SMALL CAP, there is 31% increase income plus fund (5.962%), HDFC Capital
in ICICI Midcap followed by Kotak equity builder fund (0.212%), UTI Opportunities
 Sona Global Management Review | Volume 10 | Issue 3 | May 2016 103

fund (0.157%), ICICI Prudential Mid have lower risk compared to the market in
cap fund (0.042%) and UIT Equity fund general. The value of beta of all the schemes
(0.136%). The remaining 14 schemes have used in the analysis and found lower than
underperformed as per the Treynor measure. one indicating that all the mutual funds
All the schemes indicate that, the Jensen are less risky and less volatile. In terms of
alpha gives positive value in case of all risk adjusted performance, sharpe measure
the select mutual fund schemes. Out of 20 indicated that out of 20 schemes, 5 schemes
schemes, 19 have gives the highest Jensen such as Prudential Mid cap fund , HDFC
ratio. Capital builder fund, UTI Opportunities
fund ,UTI Equity fund growth and SBI Blue
Suggestions chip fund have recorded positive values.
Treynor ratio indicated that 5 schemes
Every investor before they go for such as birla sun life income plus growth,
investment decision, they should analyze the UTI opportunities fund growth, UTI equity
mutual funds in terms of fund performance. fund growth, HDFC capital builders fund
The fund manager or portfolio manager and ICICI prudential mid cap fund have
should select the schemes in mutual fund outperformed against the market index.
according to the investors profiling. The fund Jensen alpha is positive in case of all the
manager should carefully select the scheme mutual fund schemes.
based on the market timing. The portfolio
manager should disclose all the information Overall ICICI Prudential Mid cap
to the investors which is related to mutual fund, HDFC Capital builder fund, UTI
fund as well as the company performance so opportunities fund, UTI equity fund growth
that the investors can easily understand the and SBI blue chip fund are best performing
company performance. The people who are funds in the sampled schemes. Franklin India
interested to invest in mutual fund schemes savings plus fund, Kotak equity arbitrage
they may invest in ICICI Prudential Mid cap fund and IDFC money manager fund have
scheme. not performed well during the study period.

Conclusion References

This study has carried out to evaluate the Athanasios G. Noulas John A.
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