PERFORMANCE EVALUATION OF BALANCED FUND SCHEMES IN INDIA

Abstract

Mutual Funds over the years have gained immensely in their popularity and a fast growing sector of Indian capital and financial markets. It has become a major vehicle for mobilization of savings, especially from the small and house hold savers for investment in the capital market. The objective of this paper is to evaluate the performance of balanced fund schemes in terms of risk and return and compare with market Benchmark. The results have been foundusing benchmark portfolio during the period April 7, 2010 to March 30, 2011. Performance measures used are, Sharpe ratio, Treynor ratio, Jensen’salpha, M²measure and coefficient values. The studydirectsthat majority of the schemes have positive return and less systematic risk than the market portfolio. However, some of the schemes are not conformity with their stated objective and require more diversification.In overall, 14 balanced schemes have performed outstanding in market in terms of Sharpe &M² measure besides 15 schemes have outperformed under Treynor measure. Best performances have been found under; HDFC Children Gift Fund, HDFC Prudence Fund, HDFC Balanced Fund and ICICI Prudential Child Care Plan-SP whereas, Birla Sun life Freedom Fund,Tata Young Citizen Fund, UTI Retirement Benefit Pension Fund and UTI Mahila Unit scheme were found more volatile and worst performers among all.