An Empirical Study on Performance of Mutual Fund in India

Abstract

Stock market plays a very vital role in developing economy like India. It is becoming a darling of many small investors and also attracting the rural people in recent years. Investors usually perceive  that all capital market investment avenues are risky. Based on objectives and risk bearing capacities, investors go for different investment alternatives. Among the various investment possibilities, mutual fund seems
to be viable for all kind of investors as it is considered to be a safer mode of investment. This study is an
attempt to understand the performance of share market and to analyze the correlation of performance of mutual funds with market indices like Sensex and Nifty. As a part of this study, data is collected regarding performance of mutual funds and stock market for the last year 2007 - 08, 2008 - 09 and 2009 - 10. Top five mutual fund  (growth ) and ten index funds are taken as sampling. Thus it is analyzed by using statistical tools such as Arithmetic Mean, Standard Deviation, Correlation and Testing Hypotheses.
The study shows that, investors have made quite good returns in mutual funds like Reliance Vision Fund, HDFC Top-200 Fund etc.