Performance Analysis of Select Mutual Funds in India

In India there are many ways to invest and earn, but investors choose to invest only in low-risk avenues for a high profitable return. Additionally, among all other financial products, investing in mutual funds provides low risk and maximum return. Nowadays, people presume that investing in Mutual funds is the secured option. Investment portfolios of mutual funds are managed by a professional organization termed as “Asset management company”. The Indian mutual fund sector has shown an incredible growth in the recent years. AMFI formed in 1995 play an important role in developing and regulating industry in line with the guidelines of SEBI. SEBI has categorized mutual fund scheme in India which include solution-oriented schemes, index funds, equity, debt, ETF’s and fund of funds each objecting to various risk challenges. Investment Performance measurement methods calculate how much return the investment has made. This study evaluates selected mutual fund schemes in India utilizing key risk-returns such as Sharpe ratio, Compound annual growth rate, Treynor ratio, and standard deviation to give significant conclusions for informed investment decisions and focuses on evaluating five midcap fund returns and comparing different schemes based on risk-return parameters. The study suggests that investors should consider risk-adjusted performance measures and not choose funds primarily based on high returns. Among the select mutual funds, 5 midcap funds underperformed delivering low average returns in 1–5 years in contrast to the other funds delivering high average returns in 1–5 years.