A Study on Performance of Equity Funds and Debt Funds in Bank

A Study on Performance of Equity Funds and Debt Funds in Bank

Abstract

A mutual fund is a trust that combines the money of participants who have similar financial objectives. Mutual funds are of great interest not just to academics worldwide, but also to investors. Mutual funds are classified into many kinds, including Equity Funds, Money Market or Liquid Funds, Hybrid Funds, Debt or Income Funds, Gilt Funds, and so on. However, this research focuses on Equity Funds and Debt Funds. The research focuses on analyzing the performance of different schemes in the share trading firm's Equity Fund and Debt Fund and making recommendations based on the findings about the optimal investment scheme. 

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Standard deviation, beta, and performance measurements are employed in this research, as are Treynor Measure, Sharpe Measure, and Jensen Measure. This research only looks at the last five years of fund value and is entirely dependent on secondary data.


Introduction

A mutual fund is a trust that combines the resources of a group of investors who all have the same financial objective. The funds raised are then invested in capital market instruments such as shares, debentures, and other securities. The income generated by these assets, as well as the capital appreciation achieved, are distributed to unit holders in proportion to the number of units held. Thus, a mutual fund is the best investment for the average person since it allows them to invest in a diversified, professionally managed basket of assets at a reasonable cost. The flow chart below depicts the general operation of a mutual fund.

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Conclusion

Personal investing is influenced by an individual investor's degree of knowledge about various investment possibilities. Individuals must understand the connection between risk and return, as well as industrial sectors, economic indicators, company performance analysis methods, portfolio management strategies, and investment choices before investing in any mutual fund. This research provides a comprehensive perspective on the different analyses of Equity Funds and Debt Funds in order to determine the best return yielding fund. 


It is evident that among all funds in the Equity and Debt fund categories, HDFC TOP 200 FUND and HDFC EQUITY FUND have shown high risk and high return. This implies that the aforementioned strategies fared effectively in the market.

For More Details About a Study on Performance of Equity Funds and Debt Funds in Bank Please Visit Our Website


Or call us +91 9481545735

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