COMPARATIVE ANALYSIS OF RISK AND RETURN ON SELECT MUTUAL FUNDS

Abstract

This study analyzes the performance and risk-return characteristics of selected Indian mutual funds, comparing bank-sponsored and non-bank-sponsored Asset Management Companies (AMCs) across Small Cap, Mid Cap, and Large Cap categories over a five-year period (2019-2024). Using key financial metrics such as Standard Deviation (σ), Beta (β), Sharpe Ratio, Treynor Ratio, and Jensen’s Alpha, the research identifies the best-performing funds based on investor risk appetite. Findings reveal that AXIS Mutual Funds, a bank-sponsored AMC, exhibit the lowest risk across all categories, making them ideal for conservative investors. In contrast, NIPPON Mutual Funds, a non-bank-sponsored AMC, demonstrate higher volatility but superior risk-adjusted returns, appealing to aggressive investors. Among Small Cap funds, AXIS SMALL CAP performs best, while NIPPON MID CAP leads in the Mid Cap segment. ICICI LARGE CAP is the top performer among Large Cap funds, whereas DSP LARGE CAP consistently ranks the lowest. The study highlights that Large Cap funds generally yield lower risk-adjusted returns than Small and Mid-Cap funds. Investors should select funds based on their risk tolerance, with AXIS funds for stability, SBI funds for balanced risk, and NIPPON funds for higher returns with increased risk.