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The IUP Journal of Financial Risk Management
A Study on the Performance of Large Cap Equity Mutual Funds in India
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Mutual funds are best investment avenues for a large number of investors in recent days. Risk and return are the basic features of mutual fund. The present study evaluates and compares the performance of large cap equity funds of four asset management companies (L&T, DHFL Pramerica, HDFC and Principal Mutual Fund). The results of the study show that L&T India Large Cap Equity Fund outperforms the benchmark index, i.e., NSE Nifty 50, in terms of all measurement ratios. The performance of Principal Large Cap Fund and HDFC Top 200 is moderate and they also outperform the benchmark index. However, DHFL Pramerica Large Cap Equity Fundís performance is very poor as compared to other selected funds.

 
 
 

ndia is the fastest growing largest economy in the world and it has been consistently registering high growth rate after introduction of Liberalization Privatization Globalization (LPG) in 1991. The economic growth rate was 7.6% in 2015-16. But still Indian economy is labeled as a developing economy in the world. The urgent need of the hour is to increase the overall production to make India a developed country by 2020. But this process requires huge amounts of investment in production activities. There are many ways to channelize funds from savers to production activities. Mutual fund is one of the best ways in channelizing especially the funds from small and medium investors to production activities, as India is a country with a large number of small and medium savers. The total gross amount mobilized by the mutual fund industry was 97,68,100 cr in the 2013-14 financial year. So, the mutual fund industry has been playing a significant role in the progress of the economy of India by becoming the key industry in providing capital to economic activities.

In recent days, mutual funds have been getting a lot of attention from small and medium investors. The investment in equity scheme is a common decision of a majority of aggressive investors as it is the only fund to give maximum return to investors as compared to other kinds of mutual funds. In equity fund itself, there are many diversified schemes available for investors like large cap equity fund, mid-cap equity fund, small-cap equity fund, sector fund, thematic fund, etc. These equity schemes carry different amounts of risk and return to investors. Therefore, a study on risk and return of equity schemes is necessary for every investor to make an appropriate investment decision to achieve wealth maximization objective. From the related literature, it is observed that none of the research studies focused on the performance of large cap equity funds. Hence, the present study on the performance of large cap equity mutual funds in India is undertaken to fill this gap and to give fruitful information to the investors and fund managers to make best decisions regarding investment of fund.

 
 
 

Financial Risk Management Journal, Asset management companies (L&T, DHFL Pramerica, HDFC and Principal Mutual Fund),Liberalization Privatization Globalization (LPG) .