Sathish P, Janani Ravinagarajan
Mutual fund is an investment avenue which enables small investors to satisfy their appetite on market securities by allowing fund managers to decide for them. India has 44 mutual fund companies offering a choice over 11,000 primary schemes. Academic research conducted in the past has shown that the mutual funds have been performing in line to the benchmark standards. There has been systematic outperformance only by recent top performers. The performance of poor performing mutual fund companies has always been suggestively worse. In this paper, the performances of growth plan schemes are evaluated for the selected 10 mutual fund companies. Evaluation is done for 60 months from April 2014 to Mar 2019. Based on benchmark index and tools like standard deviation, beta is calculated along with risk adjusted techniques such as Sharpe, Treynor and Jenson ratios. The study is an addition to the existing literature and may help in improving the quality of informed decisions taken by investors with special reference to growth options provided by mutual fund companies. The study records that the growth plans provided by the top mutual fund companies (based on AAUM), did not outperform the benchmark index during the study period. Though the mutual fund schemes show less chances of procuring stable returns compared to the risk free return investments, it is also representing that long run investments are to be made to see higher returns. The large cap funds represents investments made in stable companies. Risk-averse investors who intent to invest on long run should stay invested for a minimum period of 5 years or more. The fund may not show positive return on immediate basis.