Growth peformance and risk analysis of diversified equity mutal funds: A study

Mutual fund is a mechanism for pooling the resources by issuing units to the investors and investing funds in securities in accordance with objectives as disclosed in offer document. Investors need to know how risky individual assets are and what their contribution to the total risk of a portfolio would be. Plenty of Mutual Funds are available where the investors can put their money. Before investing they want to know which fund gives more return, which fund is performing well, which fund is more risky etc. Mutual fund returns can be compared using mean & Compounded Annual Growth Rate. Risk can be analyzed by finding out Standard Deviation, Beta while performance analysis is based on Risk-Return adjustment. Key ratios like Sharpe ratio and Treynor ratio are used for Risk-Return analysis. Funds are compared with a benchmark, industry average, and analysis of volatility and return per unit to find out how well they are performing with respect to the market Value. Risk analysis can be done to find out the maximum possible losses in a month given the investor had made an investment in that month. The present study found that all the funds except one have outperformed the Benchmark return.