Performance Evaluation of Equity Shares and Mutual Funds with Respect to their Risk and Return

Capital market provides various investment avenues to the investors, to help them to invest in various industries and to ensure the profitable return. Among various financial products, mutual fund ensures the minimum risks and maximum return to the investors, Growth and developments of various mutual funds products in the Indian capital market has proved to be one of the most catalytic instruments in generating momentous investment growth in the capital market. The main objectives of this research work are to analysis financial performance of selected equity shares and mutual fund schemes through the statistical parameters such as (alpha, beta, standard deviation, r-squared, Sharpe ratio). The findings of this research study will be help full to investors for his future investment decisions. For this rate of return method, Beta, Standard Deviation, Sharpe ratio and Treynor ratio has been used. The study period has been taken from 1st April 2013 to 31st March 2014.The study will guide the new investor who wants to invest in equity and mutual fund schemes by providing knowledge about how to measure the risk and return of particular scrip or mutual fund scheme. The study recommends new investors to go for mutual funds rather than equities, because of high risk and market instability.