Performance Evaluation of Equity Funds: A Case Study of Aditya Birla Sun Life Frontline Equity

Abstract

This study evaluates the effectiveness of mutual fund investments, focusing on the Aditya Birla Sun Life Frontline Equity Fund. It examines key factors such as investor awareness, investment duration, sector allocation, transparency in communication, and satisfaction with fund performance. The research seeks to determine how well the fund's strategies align with investors' risk tolerance and financial goals. Primary data was collected through an offline survey of 100 respondents from the Mehsana region in Gujarat, utilizing a random sampling method. The target population included individuals aged between 18 and 60 years, both male and female, with occupations up to retirement, who are knowledgeable about mutual funds. The study investigates the primary reasons for choosing the fund, benchmarks for performance evaluation, perceptions of communication transparency, and sector preferences for technology-focused investments. Furthermore, it explores factors influencing investors' likelihood of recommending the fund and identifies commonly used metrics for evaluating equity fund performance. Secondary data was sourced from the Internet, books, and magazines to complement the primary findings. Statistical analyses, including Chi-square and ANOVA tests, were employed to examine relationships between variables and to assess differences among investor groups. These analyses provided deeper insights into the fund's management effectiveness, investor satisfaction, and performance metrics.  The findings offer valuable insights into the fund's ability to deliver consistent returns, manage risks, and meet investor expectations, contributing to an improved understanding of mutual fund performance and investment decision-making processes.