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Comparison of Performance of Selected Open-Ended Equity and Debt Mutual Fund Schemes


Affiliations
1 Assistant Professor, Department of Commerce, Loyola College, Chennai., India
 

Purpose: The numerous organisations that provide a range of funds are making it difficult for retail investors to choose an investment that is acceptable to them. During the pandemic, global market systems were disturbed, notably hurting market returns.

Design: Evaluate the open-ended schemes’ performance concerning equity and debt in mutual funds. The sample contains 10 schemes chosen from ten of the BSE 30 corporate schemes from January 2018 to December 2022. The performance of selected funds is examined to determine various statistical tools such as the daily average return, standard deviation, beta, and risk-adjusted value (Treynor and Jensen ratios). A benchmark index has also been created for analysis.

Findings: The results of the performance evaluation showed that equity schemes had a comparatively better return with moderate risk compared to debt schemes, but at the same time, the risk would be lower in debt schemes compared to equity. This study will help investors to identify good schemes and asset management firms should enhance the performance of their equity schemes to attract investors who are eager to pick the market’s portfolio structure. It is critical to identify and investigate the reasons for changes in time and market structure.


Keywords

Mutual funds, risk analysis, Jenson alpha, beta, market return, NAV.
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  • Comparison of Performance of Selected Open-Ended Equity and Debt Mutual Fund Schemes

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Authors

V. Prabakaran
Assistant Professor, Department of Commerce, Loyola College, Chennai., India
P. Smitha
Assistant Professor, Department of Commerce, Loyola College, Chennai., India
P.V. Saravanan
Assistant Professor, Department of Commerce, Loyola College, Chennai., India
K.C. Mini Mathew
Assistant Professor, Department of Commerce, Loyola College, Chennai., India

Abstract


Purpose: The numerous organisations that provide a range of funds are making it difficult for retail investors to choose an investment that is acceptable to them. During the pandemic, global market systems were disturbed, notably hurting market returns.

Design: Evaluate the open-ended schemes’ performance concerning equity and debt in mutual funds. The sample contains 10 schemes chosen from ten of the BSE 30 corporate schemes from January 2018 to December 2022. The performance of selected funds is examined to determine various statistical tools such as the daily average return, standard deviation, beta, and risk-adjusted value (Treynor and Jensen ratios). A benchmark index has also been created for analysis.

Findings: The results of the performance evaluation showed that equity schemes had a comparatively better return with moderate risk compared to debt schemes, but at the same time, the risk would be lower in debt schemes compared to equity. This study will help investors to identify good schemes and asset management firms should enhance the performance of their equity schemes to attract investors who are eager to pick the market’s portfolio structure. It is critical to identify and investigate the reasons for changes in time and market structure.


Keywords


Mutual funds, risk analysis, Jenson alpha, beta, market return, NAV.

References





DOI: https://doi.org/10.23862/kiit-parikalpana%2F2023%2Fv19%2Fi2%2F223465