AN EXPLORATORY STUDY OF MUTUAL FUNDS PERFORMANCE IN INDIA
Dr. Ramchandra D. Patil
Assistant Professor, Bharati Vidyapeeth (Deemed to be University) Department of Management Studies (Off Campus), Navi Mumbai, Maharashtra, India,
firstname.lastname@example.org , ORCID ID: 0000-0001-7019-227X
Dr. Manisha Waghmode
Assistant Professor, Bharati Vidyapeeth’s Institute of Management Studies & Research, Navi Mumbai, Affiliated to University of Mumbai, Maharashtra, India, email@example.com , ORCID ID: 0000-0002-4008-5614
Dr. Manisha Shukla
Associate Professor, Bharati Vidyapeeth’s Institute of Management Studies & Research, Navi-Mumbai, Affiliated to University of Mumbai, Maharashtra, India, firstname.lastname@example.org , ORCID ID: 0000-0002-6153-2540
Dr. Pratap Desai
Associate Professor, Bharati Vidyapeeth Deemed to be University IMRDA ,Sangli Maharashtra, India, email@example.com,ORCID ID:0000-0002-4943-3240
The aim of the current research paper was to examine the performance of mutual fund schemes in India from the financial year 2010–11 to 2019–2020 in terms of Assets Under Management (AUM). Demonetization’s effects on mutual fund performance in 2016 were also envisioned to be studied in relation to mutual fund scheme performance in previous years.
The current study’s basis is secondary data that was collected from a variety of sources, notably SEBI annual reports. For the purpose of this analysis, the performance of mutual fund investments during the previous ten years, from 2010–11 to 2019–20, has been used. Additionally, the researcher used several statistical techniques, like descriptive statistics, correlation, and coefficients of variation, to assess the data that had been collected. The following types of mutual fund schemes have been taken into account in the current study: exchange traded funds, balanced schemes, income/debt-oriented, growth/equity-oriented, and fund of funds investing overseas. The data are classified, and the outcomes are presented, using tabular and graphical representations.
According to the present study, all mutual fund schemes have had consistent performance over the past 10 years. Whereas, during the duration of the study period, the contribution of income/debt oriented mutual fund schemes to total Assets Under Management (AUM) has consistently been the most significant. In terms of Average Annual Growth Rate (AAGR), mutual fund schemes have performed 14.76 per cent. In comparison to other mutual fund schemes, exchange traded funds with an AAGR of 26.93 per cent and balanced funds with an AAGR of 25.10 per cent exhibit high growth rates. Additionally, it was found that the demonetization resulted in a nearly 50% fall in the yearly growth rate of mutual fund schemes in 2016 compared to 2015.
Research Limitations/ implications:
The present study is confined to the performance of Mutual Fund Schemes in India. It based purely on the secondary data collected for 10 years’ time period starting from 2010-11 till 2019-20. The study’s objectives are stated, and the performance of mutual fund scheme during the previous ten years is examined using secondary data collected from SEBI annual reports only. The study is restricted to the effects of demonetization, which can be extended further considering other factors. The study’s scope is limited to India only.
This research examined the performance of mutual fund schemes in India in terms of Assets Under Management (AUM) from 2010–11 to 2019–2020. Five different types of mutual funds schemes were used in this study to analyze the performance of mutual funds over a ten-year period in India. It compared the impact of demonetization on mutual fund performance in 2016 to that of mutual fund scheme performance in earlier year. For analysing the performance of the investments in mutual funds in India statistical techniques such as descriptive statistics, coefficient of variation, average annual growth rate (AAGR), compounded annual growth rate (CAGR), correlation between various types of funds are determined to find out the relationship between various kinds / schemes of mutual funds.The research may be beneficial in developing future policy for the mutual fund company.
Keywords: Securities, Financial Assets, Compound Growth Rate, Exchange Traded Funds, Balanced Funds.