Document Type

Article

Publication Date

11-27-2024

Comments

This article is the author's final published version in Cogent Economics and Finance, Volume 12, Issue 1, 2024, Article number 2431535.

The published version is available at https://doi.org/10.1080/23322039.2024.2431535.

Copyright © 2024 The Author(s)

Abstract

This study evaluates Indian mutual funds using a variety of criteria, demonstrating a historical tendency of lower monthly returns and volatility when compared to benchmark indexes. This positive risk profile implies that it will appeal to investors who want stability. Despite COVID-19-induced market volatility, mutual funds persistently outperform benchmark indices in terms of average return per unit of risk, highlighting their potential as a dependable investment option for stability seekers. Furthermore, Indian mutual funds routinely beat benchmark indexes in risk-adjusted terms. Despite having a positive alpha, it lacked statistical significance, indicating a possible reliance on market volatility rather than managerial ability. Notably, while mutual fund managers demonstrated ability in asset selection, they lacked market timing abilities. The study also reveals that Indian mutual funds may demonstrate a considerably reduced downside risk in unfavorable market circumstances than comparable benchmarks.

Creative Commons License

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 License.

Language

English

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