Sanshodhan

Open Access Open Access  Restricted Access Subscription Access

Comparative Analysis of Liquid Debt Mutual Fund and Aggressive Hybrid Mutual Fund of Selected Companies from Year 2011 to 2018


Affiliations
1 C P & Berar Education Society Arts & Commerce College, Nagpur, India
 

Debt mutual funds are ideal investments for traditional investors. They are suitable for both the short-term and mediumterm investment horizon whereas Hybrid Funds is a mutual fund which provides a onestop investment mix by investing its portfolio in a combination of debt and equity instruments with an aim to balance the risk-reward ratio. The tracking of returns of funds over a period helps to forecast the future returns. Though the past performance may or may not be the same, but still the past performances is one of the influencing factors for inviting new investors and retain the investments of the current investors. As the equity and debt funds are the growth and income schemes which are usually chosen by the investors, annualized returns of selected funds are compared and appraised. The information related to the risk and return analysis of equity and debt for over eight year period is considered for comparison. The average returns, standard deviation and sharpe ratios for three years period (2016-18), five years (2014-18) and eight years (2011-18) are calculated. The random sample comprises of 12 debt and 12 hybrid funds sponsored by different AMCs is chosen. 3 years, 5 years and 8 years bond yield is considered for calculating sharpe ratio.

Keywords

No keywords
User
Notifications
Font Size

  • Ajay Khorana, “Peter Tufano, Lei Wedge (2007), “Board structure, mergers, and shareholders wealth. A study of the mutual fund industry”, “ssrn.com, 621081.

  • Grinblatt. Market & Titman. Sheridin. (1989) “Mutual Fund Performance: An Analysis of Quarterly Portfolio Holdings”, Journal of Business, Vol.62, No.3, pp. 393-416.

  • Henriksson. Roy. D. (1984) “Market Timing and Mutual Fund Performance: An Empirical Investigation,” Journal of Business part 1, Jan 1984,pp 73-96.

  • Karoui, Aymen and Meier, Iwan (2008), “performance and characteristics of mutual fund”, ssrn.com, paper no. 1313284 and pp.1-37.

  • Michael . K. Berkowitz . ( 2002 ) “Managerial quality and structure of management expenses in the US mutual fund industry”, International review of economics & finance, Vol. 11, Issue : 03, 2002 Pages 131-330.

  • Nidhi Walia and Ravi Kiran (2010), "Efficient Market Hypothesis, Price volatility and performance of Mutual Funds Efficient Market Hypothesis,' Price volatility and performance of Mutual Funds”, Global Journal of Management and Business Research, Vol. 10, issue 2. pp 42-50.

  • Rao D.N. (2005), “Investment styles and Performance of Equity Mutual Funds in India”, www.ssrn.com, paper no. 922595 and PP. 1-30.

  • Richard A. Ippolito. (1993) “On Studies of MutualFund Performance, 1962-1991”, Financial Analysts Journal, January -February, pp. 42-50.

  • Sanjay Kumar Mishra and Manoj Kumar (2011) “How mutual fund investors' objective and subjective knowledge impacts their information search and processing behaviour” Journal of Financial Services Marketing 16, 27–41, doi:10.1057/fsm.2011.1.

  • Sharpe. William F. (1966), “Mutual Fund Performance”, Journal of Business, 39, No. 1, (Jan., 1966), pp. 119-138.

  • Suppa-Aim, Teerapan (2010), “Mutual fund performance in emerging markets: the case of Thailand”, Ph.D. thesis , University of Birmingham.

  • Zakri Y. Bello, (2005), “Socially Responsible Investing and Portfolio Diversification”, The Journal of Financial Research, Vol. XXVIII, No. 1, pp.41-57.


Abstract Views: 297

PDF Views: 174




  • Comparative Analysis of Liquid Debt Mutual Fund and Aggressive Hybrid Mutual Fund of Selected Companies from Year 2011 to 2018

Abstract Views: 297  |  PDF Views: 174

Authors

Sumant L. Wachasundar
C P & Berar Education Society Arts & Commerce College, Nagpur, India
Reeta V. Sontakay
C P & Berar Education Society Arts & Commerce College, Nagpur, India

Abstract


Debt mutual funds are ideal investments for traditional investors. They are suitable for both the short-term and mediumterm investment horizon whereas Hybrid Funds is a mutual fund which provides a onestop investment mix by investing its portfolio in a combination of debt and equity instruments with an aim to balance the risk-reward ratio. The tracking of returns of funds over a period helps to forecast the future returns. Though the past performance may or may not be the same, but still the past performances is one of the influencing factors for inviting new investors and retain the investments of the current investors. As the equity and debt funds are the growth and income schemes which are usually chosen by the investors, annualized returns of selected funds are compared and appraised. The information related to the risk and return analysis of equity and debt for over eight year period is considered for comparison. The average returns, standard deviation and sharpe ratios for three years period (2016-18), five years (2014-18) and eight years (2011-18) are calculated. The random sample comprises of 12 debt and 12 hybrid funds sponsored by different AMCs is chosen. 3 years, 5 years and 8 years bond yield is considered for calculating sharpe ratio.

Keywords


No keywords

References