A STUDY ON PERFORMANCE EVALUATION OF SELECTEDOPEN-ENDED EQUITY MUTUAL FUND SCHEMES IN INDIA

Hajee. CMA. Dr. M. Sheik Mohamed 1 and Mr. M. Kaja Muhaideen 2 . 1. Professor and Principal (Rtd.,) Jamal Mohamed College, Tiruchirappalli. 2. Ph.D Reserch Scholar in JIM and Assist Prtanofessor, Department of Business Administration, Jamal Mohamed College, Tiruchirappalli. ...................................................................................................................... Manuscript Info Abstract ......................... ........................................................................ Manuscript History

Objectives Based Schemes:-Growth Schemes:-Growth schemes are designed to provide optimum returns through capital appreciation over medium to long term. Major parts of their fund are invested in equities.
Income Schemes:-If you are looking for regular and steady returns go for income schemes. These schemes generally invest in fixed income securities such as bond and corporate debentures.
Balanced Schemes:-Balanced funds give you the best of growth and income schemes. A balanced fund invests both in equities and fixed income securities. Their returns are generally less volatile as compared to pure equity fund.
Liquid Schemes:-Liquid schemes are also known as money market schemes. These schemes generally invest in safer short-term instruments such as treasury bills, certificated of deposit, commercial paper and government securities.
Other Schemes:-Tax Saving Schemes:-If you are investing because you want to save tax, go for these schemes. They offer deduction from gross total income to the investors, at present, under Sec. 80C of the Income Tax Act.

Sector Specific Funds:-
Sector specific funds take advantage of the boom or expected upturn in a particular industry or sector by investing in them.

Literature Review:-
Literature on mutual fund performance evaluation is enormous. A few research studies that have influenced the preparation of this paper substantially are discussed in this section.
Mishra, et al.,(2002) measured mutual fund performance using lower partial moment. In this paper, measures of evaluating portfolio performance based on lower partial moment are developed. Risk from the lower part ial mo ment is measured by t aking into account only t h ose st ates in which return is below a pre-specified "target rate" like risk-free rate. Kshama Fernandes (2003)  The objective of the study was to know the various investment avenues and the investors risk preference towards it and to find out the preference level of investors on various capital market instruments. The research article found few things like; 44% of investors are between age group of 31 -40, and they are influenced by their friend and relatives. It is concluded with the point that, though the stock market is subjected to high risk, by using derivatives the loss can be minimized to an extent.

Rama Devi.V and Nooney Lenin Kumar (2009):-
This study conducted to compare the performance of Indian and foreign equity mutual funds, to examine the performance of different equity mutual fund schemes on the basis of risk-return parameters and to investigate the performance of Indian and foreign equity mutual fund schemes on risk-adjusted measures. So this study found that the objectives of the study had been significant based on the hypothesis 4 .

SathyaSwaroopDebasish. (2009):-
In this study, an attempt had been made to the performance of selected schemes of mutual funds based on risk-return relationship models and measures. A total of 23 schemes offered by six private sector mutual funds and three public sector mutual funds have been studied over the time period April 1996 to March 2009 (13 years). The analysis had been made on the basis of mean return, beta risk, and coefficient of determination, Sharpe ratio, Treynor ratio and Jensen Alpha. The overall analysis found Franklin Templeton and UTI being the best performers and Birla Sun life, HDFC and LIC mutual funds showing poor below-average performance when measured against the risk-return relationship models.

RaheelGohar, Sohail Ahmed, and Urfa Niazi. (2009):-
This study was conducted to analyze and compare the performance of different types of mutual funds in Pakistan, and concluded that equity funds outperform income funds. These funds are further classified into broker backed and institutional backed funds for detail analysis. Findings showed that within equity funds, broker backed category showed better performance than institutional funds. On the other hand, among income funds, institutional funds are outperforming broker backed funds. This study further concludes that equity fund managers possess significant market timing ability and institutions funds managers are able to time their investments, but brokers operated funds did not show market timing ability 10 . 2050

Scope of The Study:-
The scope of the study objective is to investigate the return on investment in share market and to understand the fund sponsor qualities influencing the selection of MF Schemes. Also to find out that how far the mutual fund schemes are able to win the confidence of the investors. The researcher"s study is considering the three years performance of the mutual fund schemes in India. Now, the researcher study purpose is to know the return on investment in share market and the mutual fund schemes. The research was carried out to define how investor should invest in terms of making right choice of investment in best MF schemes, in addition which techniques should be used so that they can get the better returns from the markets. For conducting the study help of certain tools were taken such as journals and Market Information from Online.
Objectives of the Study:- To appraise the performance of mutual fund industry in India under the regulated environment.  To analyze the trends in returns of selected mutual funds schemes.  To identify the best mutual fund schemes in selected periods

Hypothesis:-
Ho: There is no significant difference in performance of various Mutual Fund schemes with special reference to Level of Return.

Limitations of the Study:-
 Since the study is mostly based on the secondary data, the shortcomings of the use of secondary data are inevitable.  Time is short to conduct the study and best schemes only six schemes has been taken for analysis.  Sample size is too small.