A Comparative Analysis of Performance of Mutual Funds Between Private and Public Sector

Abstract

The early 1990s saw the financial sector reforms in India, which led to a rapid expansion of the economy, the opening of the Indian financial market to foreign and domestic private players, a significant influx of foreign institutional investors, increased competition, and better product options for consumers. The growth of mutual funds has been one of the key developments of this decade. Mutual Funds are a type of financial intermediary that mobilizes surplus income earners' savings and directs them towards markets where there is a need for capital. In India's financial services industry, mutual funds have become a powerful financial intermediary and the area experiencing the fastest growth. Its objectives include fostering a financially diversified, effective, and competitive sector, increasing investment returns, and fostering and accelerating economic growth. Small investors who are unable to directly invest in the stock market can use this medium of investment. This project, which is titled "A Comparative Analysis of Performance of MF between Private and Public Sectors," focuses on people's preferences for different asset management firms and their historical performance. Comparing the index with market returns is one of the study's key goals. This project also aids in determining market growth and the performance of funds based on market risk. The data gathered was analyzed using descriptive statistics. Through analysis, it was discovered that the majority of investors chose growth-oriented mutual funds as their best investment option. Any investor's primary criteria are low risk and moderate returns. They gave Reliance Mutual Fund and LIC Mutual Fund products priority when choosing the asset management firm. A conclusion was reached after the data were tabulated and properly analyzed using financial tools like the Treynor, Sharpe, and Jensen method.