Performance Evaluation Of Mutual Fund And Reliance Mutual Fund: Litearture Review
Despite the existing of a mutual fund industry for over four and half decades in India, there have been only a few studies, which examined the performance of Indian mutual fund using standard methodology a brief review of this studies is now presented below: Mishra evaluated performance over a period, April 1992 to December 1996. The sample size was 24 public sector sponsored mutual funds. The performance was evaluated in terms of rate of return, Treynor, Sharpe and Jenson’s measures of performance. The study also addressed beta’s instability issues. The study concluded dismal performance of PSU mutual funds in India, in general, during the period, 1992-1996.
G. Sethu used weekly NAV data for 18 open-ended growth schemes in India for the period April 1995-July 1999. His study used three alternatives indices for equity market viz. NSE Nifty, BSE Sensitive Index and S&P CNX 500. The 91-day treasury auction rate was used as the risk free rate. He concluded that the fund portfolios are not adequately diversified; the excess returns after adjusting for systematic risk is zero and the portfolios do not show any market timing. ” Singh and Singh have highlighted the fact that mutual funds have not attained equal status as their counterparts in USA, UK and other developed countries. It has emphasized on the gradual but slow growth of mutual funds in India giving an exclusive attention to the UTI as it was through to be the pioneers in this field. The private, money market funds, offshore mutual funds has been critically analyzed. Gupta, study was conducted with the primary objective to evaluate the performance of selected mutual funds schemes and to apply test for analyzing timing abilities of the mutual funds managers during the period April 1, 1994 to march 31, 1999 it also examines the growth and development of the mutual fund industry in India during the period 1987 to September 1999. However, No conclusive evidence was available which could warrant the study to accept its performance as superior.
Kumar Vikas evaluated the performance of 2o mutual funds schemes managed by five mutual funds using monthly NAV for period between 1st Jan 2000 to 31 st Dec 2009 for 1o year i. e. 120 months. The rate of return was compared with the BSE National 1oo index over the period. The performance was evaluated in the term of rate of return, total risk (i. e. S. D. ), systematic risk (i. e. Beta), coefficient of determination and risk adjusted performance suggested by Sharpe (1966), Treynor (1965) and Jensen (1968). The outcome shows that out of 20 schemes selected equity schemes shows better return as compared to debt and balanced schemes.
