These funds come under low risk low return category. In volatile times it is advisable to invest in large cap funds. Liquid funds : Liquid funds are used primarily as an alternative to short-term fix deposits.
Liquid funds invest with minimal risk like money market funds. Most funds have a lock-in period of a maximum of three days to protect against procedural primarily banking glitches, and offer redemption proceeds within 24 hours. The minimum investment size in a liquid fund varies from Rs. Liquid funds invest in short-term debt instruments with maturities of less than one year. Therefore, they invest in money market instruments, short-term corporate deposits and treasury. The maturity of instruments held is between three and six months.
A liquid fund provides good liquidity, low interest rate risk and the prevailing yield in the market. Liquid funds have the restriction that they can only have 10 per cent or less mark-to-market component, indicating a lower interest rate risk. He assumes that the investor can eliminate unsystematic risk by holding a diversified portfolio.
Hence his performance measure denoted as TP is the excess return over the risk free rate per unit of systematic risk, in other words it indicates risk premium per unit of systematic risk. The formula is given by: The formula in terms of market is: Here the numerator is Higher the ratio, better is the performance of the fund. He measures the performance as the excess return provided by the portfolio over the expected CAPM returns. Where, If the ratio is positive then we should invest in the fund or otherwise reject.
The object of the test is to find out whether the two independent estimates of population variance differ significantly or whether the two samples be regards as drawn from the normal populations. F- Test is based on ratio of variance. The ANOVA single factor imply ratio of variance, the average variation with the average of the average. It tells what proportion of variation in the dependent variable is explained by the independent variable.
The potential advantage of mutual fund investment is the diversification of portfolio. Diversification reduces the unique or unsystematic or diversifiable risk and thus improves the performance. The diversification extent can be measured by the value of coefficient of determination r2. A low r2 value indicates the fund has large scope for diversification. A comparison of diversification degree and unique risk is made for clarity.
Research design included an outline of what the researcher will do from writing the hypothesis and its operational implication to the final analysis of data. Decisions regarding what, when, how much, by what means concerning an inquiry or a research study constitute a research design, further more researcher design means arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure.
Good researcher design is often features like flexible, appropriate, efficient, and economical. Here hypothesis testing research is those where the researcher tests the hypothesis of casual relationship between variables.
Researcher ensures the minimization of bias and maximization reliability of the evidence collected. Coding should be done carefully to avoid error in coding and for this purpose the reliability of researcher to be believed. Fund managers of the assets management company also do the researcher to identify the market and would find period to buy, to hold and to sell the scrip.
Fund managers having good researcher team who continuous analysis of economic market, fundamental analysis, efficient market and technical analysis of the particular index. Today researcher team should identify the international financial market and how international financial instruments value could identified.
Financial crisis affect market total risk and total return, its indicate how to diversified the portfolio, how to totally remove the unsystematic risk.
Researcher decided proper plan to action and define variable. Variable also identified dependent and independent. Researcher specified research processing and analyzing of the data. Sampling Unit: The sample unit included Equity funds, balanced funds, liquid funds, money market, and debt funds.
All the schemes having different ratings. Sample Period: Sample study should take from period April to April Sample size: Liquid Funds 1. Escorts Liquid Fund 2. Sahara Liquid Fixed Pricing 3. Reliance Equity Fund Debt Fund 1. Religare Short Term Debt Fund 2. Axis Equity Fund 2. SBI Bluechip Fund 3. Canara Robecco Balanced Fund 2. Kotak Balanced Fund 3. The return on the market portfolio is computed as: The logarithmic mean is computed to obtain mean monthly market return.
The returns thus obtained are absolute returns and are retained throughout the study. The variance and standard deviation are computed from logarithmic monthly returns. The error term ep is an approximation for unique risk. There are unequal sample observations and non-identical time periods for the selected mutual fund schemes.
It is assumed that beta is stationary during the period. The regression also provides the value of r2 coefficient of determination that gives the strength of co-relation between the market and the fund returns and indicates the extent of diversification.
Thus the two indices rank the schemes differently. Results of Jensen measure revealed that 12 out of 30 schemes were showed positive alpha which indicated superior performance of the schemes and remaining 18 schemes had negative alphas.
Table — 1 Ranking of sample schemes on the basis of sharpe, treynor, jensen measure april to march S. Results of the study showed that that 14 out of 30 sample mutual fund schemes had outperformed the benchmark return. All the schemes have represented positive returns. A study on factors affecting investment on mutual funds andd its preference of retail investor Vol. Amirtha vishwav vidyapeetham: International journal of scientific and research publication.
Jensen, M. The performance of mutual funds Vol. Journal of finance. Measuring performance of india mutual funds. Indore: socail science research network.
Nimalathasan , MR. Kumar Gandhi. Mutual fund financial performance analysis-A comparative study on equity diversified schemes equity mid cap schemes. Performance evaluation of selected category of public sector mutual fund schemes in indi Vol. Performance evalution of equity mutual funds on selected equity large cap funds Vol.
Trichy: International journal of business and management invention. Performance evaluation of india mutual funds. Evaluating the performance of some selected open ended equity diversified mutual fund in india mutual fund industry Vol. Sarita bahl, M. A comparative analaysis of mutual fund schemes in india Vol. Shanthanu mehta , Charmi shah. Preference of investors for mutual fund and its performance evalution Vol. Gujarat: Pacific Business Review International.
Maharastra: International journal of research in finance and marketing. Performance evaluation of open ended schemes of mutual funds Vol. All rights reserved by www. Comparative study of performance evaluation of mutual funds schemes of india companies Vol. Annapoorna , Pradeep K. Ashok Bantwar , Mr. Krunal Bhuva. Performance evalution of selected indian equity diversified mutual fund schemes:An empirical study.
Subha , MS. Jaya bharathi. An empirical study on the performance of selected mutual fund schems in India. One of the key benefits of mutual fund investing is that your money is managed by professional money managers who have years of investing experience. It is the ease of buying and selling an investment. Mutual Funds offer superior liquidity compared to some of the other instruments as you can buy and sell them anytime you want. The performance of mutual funds is measured in terms of the returns it delivers.
Mutual funds have historically delivered returns better than every other investment option like Bank FDs. Therefore, you don't need large sums to start investing. As mutual funds invest in a basket of stocks, bonds, etc. Mutual funds are regulated by the SEBI.
The tight regulations ensure that the mutual funds follow transparent processes and that investors' interests are protected. SIP allows you to invest a fixed sum at regular intervals. SIP is one the most recommended ways to invest in mutual funds as it is convenient and helps you average out the cost of buying mutual fund units. When you make a one-time investment, it is called lumpsum.
Lumpsum investments are generally done when people have got a big sum of money like bonuses or payment from a sale of an asset. Mutual funds in India are classified into different categories based on the asset class they invest in. Some popular categories of mutual funds are as follows. Equity mutual funds invest a majority of their assets in stocks. These funds are classified into different categories based on the market cap of the stocks they invest in.
Debt funds generate returns by lending money to corporates and the government by buying their debt papers. These funds are classified into different categories based on lending period and credit quality of the papers. Hybrid funds invest in a mix of asset classes, including equity, debt, or gold. There are multiple categories of hybrid funds based on how much they allocate across the asset classes.
Following are the popular categories of hybrid funds. The rest goes into debt. These funds generate returns by using opportunities of price difference of securities in different markets.
The list includes selected funds that have consistently delivered higher SIP returns than their peers. These are funds that provide dual benefit of wealth generation as well as tax saving. You can save up to Rs 46, in taxes every year by investing in these funds. These funds generate returns by investing in companies whose stock price is trading at a discount compared to the value of their assets.
These funds give you exposure to companies not listed on Indian stock markets thus helping you achieve geographical diversification and reducing overall portfolio risk. More than 2. Watch all Videos. If you are planning to invest in ELSS funds and avail an additional benefit of tax saving of up to Rs 46,, this blog will provide you a complete guide to choose the best fund for you.
If you are planning to invest lumpsum, you can read this blog to know which are the best mutual funds to do that. Details of each fund like past returns, expense ratio, etc. I can get all information related to investment products like mutual funds and NPS in one place. The funds have also been ranked by their experts which helps while taking investment decisions.
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