The IUP Journal of Applied Economics
A Critical Analysis of Indian Mutual Funds: Equity and Debt Schemes

Article Details
Pub. Date : Oct, 2021
Product Name : The IUP Journal of Applied Economics
Product Type : Article
Product Code : IJAE40721
Author Name : Joy Chakraborty, Ishani Roy and Arkaprabha Das
Availability : YES
Subject/Domain : Economics
Download Format : PDF Format
No. of Pages : 10



The present paper examines the performances of equity and debt-oriented mutual fund schemes covering the period from 2015 to 2019, concurrent to the implementation of demonetization and GST in India. A total of eight schemes, with four each from the equity and debt funds, of SBI and HDFC Asset Management Companies (AMCs), have been considered in the present study. Based on the risk-adjusted performance analyses, particularly the Treynor ratio, the selected debt schemes of HDFC Mutual Fund have outperformed the debt schemes of SBI Mutual Fund.


While investing in mutual funds, investors may buy units of varied mutual fund schemes that align with their personal goals, objectives, and strategies. There are various types of mutual fund schemes for investors, out of which the most popular and widely-accepted schemes are the equity and debt schemes. If the investors demand a steady amount of return with minimal risk, then the debt schemes give them the suitable option for investment. Again, if the investors demand a higher return with substantial risks, they can either select stand-alone equity schemes or a mix of equity and debt schemes for investment.

According to the data furnished by the Association of Mutual Funds of India (AMFI) for the period ended December 2019, the 44 Asset Management Companies (AMCs) presently operating in India collectively held assets under management worth 27.86 tn. It has been found that the top two companies, namely, HDFC AMC and SBI AMC, with total assets under management of 3.82 tn and 3.53 tn, respectively, collectively held close to 30% market share of the Indian mutual fund industry. In equity assets, SBI Mutual Fund held the leading position with 1.94 tn closely followed by HDFC Mutual Fund with 1.54 tn worth of assets. In debt assets, SBI Mutual Fund was found to be trailing behind HDFC Mutua