Performance Evaluation of Mutual Fund in India: An Empirical Study
The International Journal of Financial Management
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Title |
Performance Evaluation of Mutual Fund in India: An Empirical Study
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Creator |
Roy, Subrata; Assistant Professor, Department of Commerce, Rabindra Mahavidyalaya, Affiliated to the University of Burdwan, Champadanga, Hooghly, West Bengal, India. Email: subrata1_roy@yahoo.com
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Subject |
Mutual Fund, Market-timing, Stock selection, Net-selectivity, Diversification, Risk, Fama, Treynor & Mazuy
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Description |
In India, a large number of mutual fund schemes are available. Indian and foreign mutual fund institutions provide the schemes jointly. Generally, they provide different types of schemes like income, growth, balanced, gilt etc. These schemes are made in such a way that they fulfill certain objectives. Here, open ended balanced mutual fund schemes are considered to examine the performance in the context of Indian capital market. The study uses popular measures of Treynor & Mazuy and Fama to achieve the major objectives, namely stock-selection, market timing and diversification performances of the open-ended balanced mutual fund schemes. The basic finding of the study is that the schemes have provided satisfactory returns to the investors. But, the managers have failed to reduce the magnitude of diversifiable risk. Therefore, the schemes have excessive unsystematic risk. Moreover, the managers cannot predict the market movement at right time; as a result, the managers are unsuccessful to generate extra returns due to poor market timing performance. Similarly, the managers cannot predict the security prices correctly due to poor stock selection performance.
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Publisher |
Publishing India Group
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Date |
2015-07-15
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Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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Format |
application/pdf
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Identifier |
http://www.myresearchjournals.com/index.php/IJFM/article/view/3097
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Source |
International Journal of Financial Management; Vol 4, No 3 (2014)
2229-5682 |
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Language |
eng
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Relation |
http://www.myresearchjournals.com/index.php/IJFM/article/view/3097/3025
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Rights |
Copyright (c) International Journal of Financial Management |
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