Mutual Funds

A MARK ON BENCHMARKING OF MUTUAL FUNDS:

A SELECT SCHEME-WISE ANALYSIS

- G.V.SATYA SEKHAR*

Abstract:

      Are you thinking of investing in a mutual fund scheme, but do not know how to assess the performance of a fund? Already invested in a scheme, but you don’t know what to make of that performance record the fund has sent you?
      Three important considerations are: One, you should find out how the scheme has performed. Most funds give their performance for one month, three month, six month, one year, and three years and since inception. Two, find out how the fund fared in comparison with its peers? This is easy, as all you have to do is to repeat the similar exercise with the other funds, too. Look up for the performance of other funds.   Lastly, find out the performance of the fund vis-à-vis the market benchmark. For example, a diversified equity fund should be on par or above the broad index of Bombay Stock Exchange or National Stock Exchange. Similarly, you should check out relevant index if you are investing in sectors. For example, you should check the IT index if you have investments in a Technological fund or pharma sector index if you are an investor in a pharma fund.

Objectives :
  1. To make an understanding of   the procedure of Bench Marking   system.
  2. To present underlying factors in selecting bench mark by the   fund managers.
  3. To make comparative analysis of a select schemes vis-à-vis bench mark.
Keywords:   Bench Mark, Mutual Fund, Risk-Return analysis
* Asst. professor, MBA Department,   College of Management Studies, Gandhi Institute of Technology and Management (GITAM), GITAM University Campus, Visakhapatnam. Andhra Pradesh
INTRODUCTION
      Benchmarking is a process used in management and particularly strategic management, in which organizations evaluate various aspects of their processes in relation to best practice, usually within their own sector. This then allows organizations to develop plans on how to... [continues]

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