Risk-Adjusted Return Analysis of Mutual Funds: An Empirical Study of the Indian Market

This empirical study investigates the risk-adjusted performance of selected mutual funds in the Indian market using standard financial metrics such as Sharpe Ratio, Treynor Ratio, and Jensen’s Alpha. The research aims to evaluate and compare equity and debt mutual funds based on their ability to deliver returns relative to the risks assumed. Data from 2016 to 2024 were analyzed to measure performance consistency, assess correlations between risk and return, and determine the statistical significance of differences among fund categories. The results reveal that equity mutual funds, particularly those managed by SBI and HDFC, consistently outperform debt funds on a risk-adjusted basis, although they also exhibit higher volatility. ANOVA and correlation analyses confirm significant differences and strong relationships between fund type, risk level, and return. These findings offer critical insights for investors and fund managers, emphasizing the importance of aligning investment choices with individual risk profiles and financial goals