Advances in Consumer Research
Issue 4 : 520-529
Original Article
Risk-Adjusted Performance Evaluation of Selected Equity Mutual Fund Schemes
 ,
1
Associate Professor, Sahrdaya Institute of Management Studies, Kodakara
2
MBA Graduate, Sahrdaya Institute of Management Studies, Kodakara
Abstract

The present study evaluates the risk-adjusted performance of selected open-ended equity mutual fund schemes in India, focusing on Midcap, Infrastructure, Flexicap, and Smallcap categories. The shift from traditional bank deposits to mutual funds are analyzed and evaluated as investors seek higher returns and a better understanding of risk dynamics. Fund returns were calculated over this five-year period (April 2019 to March 2024) using secondary data sourced from AMFI, SEBI, and NSE, while risk and risk-adjusted returns were analyzed for the one-year period of April 2023 to March 2024. The study employs key financial metrics such as Beta, Standard Deviation, Sharpe Ratio, Treynor’s Ratio, and Jensen’s Alpha to evaluate fund performance. Key findings revealed that HDFC Midcap Fund demonstrated lower beta values, indicating reduced volatility, and superior risk-adjusted returns in the Midcap category. Similarly, Nippon Power and Infrastructure Fund excelled in the Infrastructure category with high Sharpe and Treynor’s ratios, HDFC Flexicap Fund showed strong performance with lower volatility and favorable risk-adjusted returns in the Flexicap category, and Nippon Smallcap Fund outperformed in the Smallcap category with higher Sharpe and Treynor’s ratios, signifying superior risk-adjusted returns. This comprehensive evaluation provides valuable insights for investors, emphasizing the importance of risk-adjusted performance metrics in making informed investment decisions in a dynamic financial market. Overall, the infrastructure fund category showed the most consistent outperformance across all risk-adjusted metrics.

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