Evaluation of Performance of Indian Equity Mutual Fund Schemes (Growth) Against Their Benchmark Index

All investors are expected to generate higher return than inflation rate on investments made in various financial products. The Mutual fund is the one avenue, which helps investors especially retail investors indirectly invest in capital market. As the proportion of retail investors are increase their investment in capital market through mutual fund schemes. Based on literature reviewed mutual fund scheme's performance is being measured on the basis of Compounded Annual Growth Rate (CAGR), average return, as well as risk adjusted performance measures like Sharpe ratio, Treynor ratio and Jensen's Measure and same was used for the study. The study covers the mutual fund scheme's performance against their respective scheme's benchmark index from January 2001 to December 2007. The study found that on the basis of CAGR method is produced better result than Annual average return, out of 34 fund scheme's CAGR and 30 fund scheme's were outperformed index benchmark. The schemes performance on the basis of risk adjusted measures, 28 Schemes has performed well out of 44 against their benchmark index by Sharpe ratio. The fund schemes by Treynor ratio 31 schemes outperformed against their benchmark index. Jensen's ratio of 31 fund schemes has been positive out of 44