Performance Evaluation Of Balanced Mutual Fund Schemes In Indian Scenario

Indian Investors are risk averse and thus they prefer to invest in safe securities giving them decent returns. There are lots of investment alternatives available to them. But according to past experience, Mutual Fund Industry is having the safest image. Number of investors investing in this industry is rising day-by-day, so it becomes important for them as well as fund houses to know the performance of their mutual funds. In this paper, an attempt has been made to study the performance of selected balanced schemes of mutual funds based on risk-return relationship models and various measures. Balanced schemes of mutual funds are the ones which are mostly preferred by Indian investors because of their balanced portfolio in equity and debt. A total of 30 schemes offered by various mutual funds have been studied over the time period September 2007 to August 2010 (3 years). The analysis has been made on the basis of mean return, beta risk, total risk, Sharpe ratio, Treynor ratio and Jensen Alpha. The overall analysis finds HDFC (Growth) Mutual fund being the best performer and JM Financial (Dividend) Mutual fund showing poor below-average performance when measured against the risk-return relationship models.