A Study on Mutual Fund’s Risk Evaluation and Ranking of Indian Equity Mutual Funds
Keywords:
Direct plan, fund performance, mutual fund, small & midcap fund, riskAbstract
The mutual fund sector in India has been growing recently. In just five years, from 2013 to 2018, the average asset under management has increased by more than threefold (AMFI, 2018). SEBI’s main motive behind this is to protect direct plan investors from the cost of the commission. As in the direct plans, there are no intermediaries involved, like distributors or brokers. The prime aim of the study is to judge mutual fund risk evaluation and ranking in the Indian mutual fund industry after the introduction of direct plans. The study found that DSPBR microcap fund and small cap, Franklin India Smaller Companies Fund, SBI Small & Midcap Fund, and HDFC Mid-Cap Opportunities Fund were top funds from 2015 to 2017 but did not perform well in 2018. The top-performing funds had higher risk compared to other funds in the study. To gain higher profit with less risk, it is advisable to analyse funds’ performance and risk.
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