Article
OPEN-ENDED MUTUAL FUND SCHEMES IN INDIA BASED ON PERFORMANCE OF SELECTIVITY
The task for identifying the right mutual fund schemes and deliver excess returns over the benchmark index is a central issue for the financial academics. Certainly, the financial academics have always been devoted to develop an objective and accurate measure, which is able to assess and compare the performance and judge the abilities of the fund managers. This need has emerged out of two different dimensions. On one hand, the investors are interested to find out if the fees and expenses incurred by them are justifiable and on the other hand, the fund managers would like to reveal their importance and justify the importance of actively managed over passively managed portfolios. Consistent with a steady growth of the mutual fund industry worldwide, there is a great deal of work conducted towards the development of more sophisticated measures on performance measurement. Thus, in this chapter, a popular risk-adjusted performance measure is presented, which is used to evaluate the performance of the selected open-ended mutual fund schemes and to identify if the fund managers have superior stock selection abilities.
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