Performance of Selected Mutual Fund Companies of Debt Funds Based on Sharpe Ratio

PERFORMANCE OF SELECTED MUTUAL FUND COMPANIES OF DEBT FUNDS BASED ON SHARPE RATIO AUTHOR: Dr.R.KESAVAMOORTHY Assistant Professor in Management RVS College of Arts and Science, Sulur, Coimbatore Abstract Performance of Mutual Funds: Research Objective: To compare the performance of mutual funds in relation with benchmark return of mutual funds. Variables adopted: Performance of mutual funds in relation with benchmark return of mutual funds are evaluated. Statistical Techniques: The study used Sharpe Ratio Sharpe ratio measures the risk premium of the mutual funds in connection with the total amount of risk. Sharpe ratio measures the slope of the line emanating from risk- free rate outward the mutual funds. If the Sharpe ratio is larger, it indicates the better performance of funds. Sharpe ratio is the reward to variability of the total risk of the scheme and it is a summary of mutual fund scheme’s performance adjusted for risk. The following formula is used to estimate Sharpe ratio.