IntroductionInvestors are broadlydivided in to three categories, they are aggressive investors, moderateinvestors and conservative investors. This moderate investors will always looksinto investment area where there is moderate risk and moderate returns. Exactlymutual funds are collective investment schemes, they specializes in investing apool of money from the investors and investing in securities such as bonds,stocks and money market instruments.
It is managed by the experts called asfund managers. Mutual funds are the most popular method ofindirect investing around the globe. Mutual funds play an important role in theeconomy of the county. In this study an attempt is made to evaluate theperformance of 10 growth mutual funds on the basis of monthly returns comparedwith benchmark returns. For this purpose, risk adjusted performance measuressuggested by Sharpe, Treynor and Jensen’s are widely known as Sharpe ratio,Treynor ratio, Jensen’s Alpha. I. LiteratureReview Researchers haveattempted to study the performance of mutual fund of all schemes, some areespecially in growth schemes and some are attempted to study the mutual fundperformance of public and private sector comparisons.Alka (2016) thisstudy attempted to evaluate the performance of Reliance open-ended growthschemes focused on large cap funds in Sensex.
Reliance FocusedLarge Cap Fund in Sensex has performed better than the other schemes incomparison of risk and return which Indicates that investors who invested inthese schemes to form well diversified portfolio did receive adequate returnper unit of total risk & systematic risk undertaking.Dr. Susheel Kumar Mehta (2010) this research attemptedto study a comparison of performance ofmutual funds schemes of UTI & SBI and analyzed their performance. The studyconcluded that preference of UTI & SBI mutual funds has been better in 2007– 08.
Lakshmi N (2010)this study is about performance of the Indian MF industry with a special referenceto growth schemes and it found out that MF serve those individuals including toinvest but lack the newline technical investment expertise. Funds mobilized bythe industry had grown new here by 57 percent and AUM by 14 percent during1997-2006. Analysis of performance of newline seven schemes should that, allthe sample schemes outperformed the newline market in terms of absolute returnswithout adequate returns to over total newline risk.D.N. Rao (2006)this study is on 4 step model to evaluate performance of mutual funds inSaudi Arabia. It studied 4 step model for selecting the right equity fund andillustrated the same in the context of equity mutual funds in Saudi Arabia.
Thestudy revealed that most of the funds invested in Arab stocks had been inexistence for less than a year and the volatility of the GCC stock marketscontributed to the relatively poor performance of these funds and theturnaround of these funds could take place only with the rallying of GCC andother Arab markets. Sharad Panwar and R. Madhumathi(2006) this study is on characteristics andperformance evaluation of selected mutual funds in India.
This paper resultedthat public sector sponsored funds also not differ significantly from privatesector sponsored funds in term of mean returns percent however they said thereis a significant difference between public sector sponsored MFs. & privatesector sponsored MFs in terms of average standard deviation, average varianceand average co-efficient of variation. II. ObjectivesOf The StudyThe objectives ofthis study are· To evaluate the trends of growth mutualfund schemes.· To evaluate and compare the performance ofgrowth mutual funds using evaluation techniques.
· To compare the selected growth mutualfunds and rank with their performance.III. Scope Of The Study.This study focuseson the relationship between performance of growth mutual fund and nifty returnsusing evaluation tools such as sharpe’s ratio, treynor, jensen’s alpha. Byobserving all these we can conclude that the fund which has highest with lessrisk shows better performance. By looking at theperformance indicators it is easier to investor to find the right growth mutualfunds. Thereby help in increase profit for the investors.
From this study, itmay also enable the researcher to find the better performing mutual fund.HypothesisThe followinghypothesis have been made.Hypothesistesting is carried out with a significance level of 0.05H0:- There is no difference inperformance between growth mutual funds and Nifty IndexHA: – There is difference in performancebetween growth mutual funds and Nifty Index IV. DataAnd MethodologyThe return of the funds can be estimated bythe average return of the select funds and the risk can be calculated by usingstandard deviation and beta. The risk adjusted return can be measured with thefunctional tools like Sharpe, Treynor’s methods.
By observing all these we canconclude that the fund which has highest with less risk shows betterperformance.