Performance Measurement of Bank-Sponsored Funds: A Conventional Approach

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The paper studies the performance of selected public sector bank-sponsored mutual funds in India using conventional measures. The data for the study has been captured from two leading public sector bank-sponsored fund houses, namely SBI Fund Management Pvt. Ltd. and UTI Asset Management Co. Ltd., to examine their performances. The study uses maximum numbers of leading risk-adjusted interventions, like the Sharpe index, Treynor index, information ratio, Jensen’s alpha, Fama’s selectivity measure, and M-squared. The result of the study unveils that most of the sampled schemes executed well in terms of return and professional management of funds by the fund managers. The work also reveals that the SBI fund house is a slightly better performer than the UTI fund house, in terms of efficient schemes and professional management of the portfolio. The study concludes that stakeholders must make wise choices in their investments by looking at all the risk measures and returns, and other developed measures.

Keywords: Mutual Funds, Performance Measurement, Professional Management, Bank-Sponsored Funds

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