Mutual funds: a study of selection criteria of individual investors of performance of mutual funds comparing their returns, risk, with reference to Visakhapatnam city

Abstract

Mutual Funds, being an instrument for investment, needs to meet
high standards of performance. The first and foremost issue concerning Mutual
Funds is its’ performance. Hence, the need of the hour is to evaluate the
performance of different Mutual Funds in India and keep the Mutual Fund
investors fully aware,( A Khorana and H Servaes, 2005). The performance
analysis is in order to judge the performance of mutual fund schemes with
an objective to offer investors an easy way to identify funds that have performed
better. The excessive growth of Mutual Fund industry is liable to inflate stock
prices and makes the market more vulnerable, since it does not have enough
capacity to anticipate high inflows (Grinblatt M. &M.Keloharj, 2000). In this
chapter, an attempt has been made to study the performance of selected schemes
of mutual funds. There are many techniques employed over the years in research
to analyze and predict the performance of mutual funds, (Diane Del Guercio
and Paula A. Tkac , 2002 ). The business of evaluating Mutual Funds
performance has evolved into an industry in itself. These rating systems can
provide investors with relative guidance and direction that can lead to the decent
returns. The rating companies can add much value here, as it is not a good idea
to leave style analysis even to the fund manager. The objective of this paper is to
analyze the Performance of mutual funds comparing their returns, risk, NAV
using secondary data from various companies’ websites.
KEYWORDS: Mutual fund, NAV, risk