Towards Risk Adjusted Performance Appraisal of Indian Mutual Funds


Atanu Das,



Mutual fund,Risk adjusted performance,Sharp index,Optimal portfolio,


This paper is based on the study of mutual funds in India which is understood to be one of the most vibrant in the money market. This paper analyses a set of representative schemes from heterogeneous group of different fund houses. There are well established criteria to judge their performance absolutely and also in relative terms. This paper deals with the analysis of risk-returns parameters of different mutual fund schemes and the relation between the risk preference of the investors and the risk adjusted performance (RAP) measure based on real time data. Various tests are applied to evaluate the performance of mutual funds based on well established measures and those tests have been used to rank the funds accordingly. Some hypotheses are constructed and tested to find out whether there are significant differences in their absolute and RAP. The paper also proposed an easy and practical path to solve an optimal portfolio problem containing the various mutual fund schemes. The analysis is carried out with the help of William Sharpe’s single index model and result could of use to substantial investors who are choosing an optimum portfolio of various mutual funds.


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