PERFORMANCE EVALUATION OF INDIAN EQUITY MUTUAL FUND SCHEMES IN INDIA

Abstract

We study the performance of equity mutual fund schemes in India using for Sharpe, Treynor and Jensen measures.  Data used for the study is eight equity schemes of Indian mutual funds daily NAV for the period from Jan 01, 2014 to Dec 31, 2018. We have calculated Net Asset Values (NAV) of equity schemes daily returns, standard deviation, beta to test these three measures. NSE Nifty used as proxy, average returns of eight schemes is used as portfolio returns and 91 days treasury bills average returns are used as risk free rate of return. We test the three measures using individual schemes and portfolio performance. The result shows that the performance of the schemes thirteen percent is positive and eighty seven percent is negative when we use Sharpe measure and Treynor measure and hundred percent positive in Jensen measure. We also calculated performance of portfolio in which Sharpe and Treynor measures are showing negative and Jensen is showing positive performance. By this we conclude that comparison of schemes with its benchmark is performing better. It would be helpful for investors before investing in equity schemes to take good decisions for their saving where they want to invest money.