An Evaluation on Risk and Return of Mutual Funds in India

Abstract

The Indian capital market has witnessed unprecedented developments and innovations particularly during the decades of 1980s and 1990s. The review studies have analyzed different types of mutual funds by using various measures. Hence, the present study analyzed the risk and return of mutual funds performance of top performing funds for the last three years (2008- 2010). The study concluded that beta values of top six schemes were significantly related to their market index values. The sample of schemes namely Reliance Banking Fund-Growth Plan- Growth Option and UTI Transportation and Logistics Fund - Growth are significantly related to their market value in 2010 only. All sample schemes except Reliance Banking Fund-Growth Plan-Growth Option earned negative returns in the year 2008. Results of the study indicate that the all sample schemes earned positive return in the year 2010.