ZENITH International Journal of Business Economics & Management Research
Year : 2012, Volume : 2, Issue : 6
First page : ( 153) Last page : ( 160)
Online ISSN : 2249-8826.

Are mutual funds out-performing market?

Arora Haritika

Research Scholar, Department of Commerce and Business Management, Guru Nanak Dev University, Amritsar, Punjab, India.

Abstract

A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors to buy stocks, bonds, short-term money market instruments, and/or other securities. Most mutual funds are actively managed. Active fund managers aim at strategy of careful stock selection, where the manager makes specific investments with the goal of outperforming an investment benchmark index. In this paper, top 5 equity diversified open ended mutual funds (Rated by ICRA online) are compared with benchmark (BSE SENSEX) on bases of their log return. Findings revealed that there is insignificant difference between mutual fund’s return and Sensex. Though these equity diversified mutual funds are said to active managed portfolios, but they are failed outperform the market instead of their active management by experienced fund managers

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Keywords

Active portfolio management, Equity Diversified, Mutual Fund, Outperforming Benchmark.

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