Mutual Fund Performance: Evidence from India
Mahfooz Alam, PhD, Finance in the department of Business Administration, Faculty of Management Studies and Research, Aligarh Muslim University, India.
Manuscript received on November 11, 2019. | Revised Manuscript received on November 20 2019. | Manuscript published on 30 November, 2019. | PP: 11714-11723 | Volume-8 Issue-4, November 2019. | Retrieval Number: D4284118419/2019©BEIESP | DOI: 10.35940/ijrte.D4284.118419
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: We empirically examine fund managers’ stock selection and market timing ability using various risk-adjusted measures such as CAPM and multifactor models of Fama-French (1993) and Carhart (1997) to gauge mutual fund performance in India. The sample consists of 183 actively managed equity-oriented funds and covers the period from April 2000 to March 2018. The study, on the whole, documents some evidence of positive and significant stock selection ability but fails to yield any notable evidence of market timing ability of fund managers. Our results are robust according to various risk-adjusted performance evaluation techniques, sub-period analysis, excluding the crisis period and at the individual fund level. The findings of our study are in line with the previous studies that report limited selectivity skill and market timing ability among fund managers. The main implication of the study is that active portfolio management may not be very rewarding in comparison to a passive investment strategy.
Keywords: Indian Mutual Funds, Market Timing, Performance Evaluation, Stock Selection Skills.
Scope of the Article: Performance Evaluation of Networks.