A STUDT ON COMPARATIVE ANALYSIS OF MUTUAL FUNDSWITH REFERENCE TO SELECTED FUNDED SCHEMES.

Abstract

The Mutual fund industry is one of the rapidly growing industries in the stock exchange market where it attracts the investors with its diversification nature. In mutual funds, the investment is diversified within the various equities included in that fund. It controls the risk and distributes the moderate returns where investors can expect minimum returns from the fund. In this study 14 open-ended, growth-oriented funds are considered for the study. The data was collected for the period of 2014 to 2018 (Five years) where quarterly net asset values of the selected funds are collected to calculate the return and risk of those schemes and to compare the same with the benchmark index. In this study, BSE Sensex is considered as the benchmark index. The study revealed that all the schemes are outperformed the benchmark index when the scheme returns are compared with the Sensex returns. It indicates that the performance of the fund schemes is far better than the market returns. When it comes to the risk only one scheme had better risk rate than the market risk. It means the market had a lower risk when compared to all the schemes selected in this study. It indicates that the schemes are facing diversification problems where the selected equities of those schemes are not satisfying the diversification nature of the mutual funds.

KEYWORDS: Mutual Funds, Comparative Analysis, Scheme Returns, Market Returns, Portfolio Risk, Market Risk.