A comparative Study of Selected Market Capitalization Based Mutual Fund Schemes in India

Abstract

All risk-seeker finds its better to invest their saving money in those investment avenues which give higher returns even if it involves more risk. Equity-based Mutual Funds might be a favourable option for them. India’s Mutual Fund sector has experienced significant growth over the past decade. They cover a vast range of investment options for individual and institutional investors. Among these, equity or stock based Mutual Fund schemes have garnered significant attention due to their possibility for higher returns, though they have higher risk also as compared to other fund types. This study targets three equity based Mutual Fund schemes, namely accounts: large, medium and small cap funds to the top ten Mutual Fund houses that hold for approx. 78% of assets specifically under management (AUM) to assess variations in the risk-return profile of various Mutual Fund schemes based on annual returns from the year 2020 to 2024. For analysis purposes, descriptive statistics and ANOVA are mainly used to check the variability among the schemes. After examination of the study, it’s found that there is significant variation in risk-returns profiles of large, mid and small cap funds in every year excluding only the exceptional year 2022.  The findings will help investors produce informed decisions by highlighting the risk and return variation of these schemes, thereby optimizing their portfolio returns. The study concludes with recommendations for investors based on different risk appetites and investment goals, alongside potential implications for fund managers.