A Comparative Study of Selected Public & Private Sector Equity Diversified Mutual Fund Schemes in India

Abstract

This study is an effort to analyze the performance of selected Equity Diversified schemes with a view to see its impact on investor's decision making. In this study 18 Equity Diversified Mutual Funds schemes are taken as sample and the selection of schemes was on the basis of Corpus size and Returns of last 5 years. The risk free rate taken is 5.5%. In order to give an increased return in domestic savings of investors and improvement in allocation of investment in different sectors, the need and scope for mutual fund as an investment option has increased immensely. Investment in Mutual fund is restricted to Tier 1 and Tier 2 cities whereas the rural and semi urban communities. One of the reasons behind it is lack of awareness in rural and semi urban areas. There is, therefore, a strong need for improving the awareness. The Private Sector Mutual Funds have recorded much better performance as compared to the Public sector Mutual Funds mainly due to better Funds allocation, better Management and efficient performance of Portfolio Manager. This result was arrived at after calculating and comparing the Sharpe, Treynor, beta and Jensen ratio.