A Study on The Performance of Mutual Funds in India: A Comparative Analysis

Abstract

Mutual funds have become increasingly popular as investment options in India nowadays. Investors can invest in mutual funds for portfolio diversification and long-term financial goals. The purpose of this study is to assess how different types of mutual fund perform in India which include equity, debt and hybrid funds. The study uses the comparative analysis method and relies on secondary data from mutual fund schemes, financial statements and other publications. Returns, risk-adjusted returns (Sharpe ratio), expense ratios, and portfolio turnover are key performance measures of selected mutual funds measured and analysed. The results show that return-wise equity funds beat debt and hybrid funds, but it will have more risk as well. While hybrid funds give you balanced equity and debt funds for investment, debt funds give you more stable returns albeit at a lower risk. Considering our findings, we make suggestions to investors on making right choices and optimal investment in mutual funds.