Performance Analysis of Mutual Funds Schemes

Mutual funds have emerged as an important investment avenue in India, offering investors opportunities for diversification, professional management, liquidity, and a wide range of risk-return combinations. The present study evaluates the performance of selected equity, debt, and hybrid mutual fund schemes in India during the calendar year 2025. The primary objective of the study is to compare the risk-adjusted performance of these three categories of mutual funds and identify their relative efficiency under varying market conditions. A sample of 30 top-performing mutual fund schemes was selected, comprising 15 equity funds, 6 debt funds, and 9 hybrid funds. Daily Net Asset Value (NAV) data for the period from 1 January 2025 to 31 December 2025 were used for the analysis. The data were collected from the Association of Mutual Funds in India (AMFI). The 91-day Treasury Bill rate was considered as the risk-free rate, while the Nifty Index was used as the market benchmark. The study employed Sharpe Ratio, Treynor Ratio, and Jensen's Alpha to evaluate the risk-adjusted performance of the selected schemes. The findings reveal considerable variations in performance across fund categories and different months of the study period. Equity mutual funds experienced relatively weak performance during January, February, July, August, and December, while showing improvement during March to June and September to October. Debt mutual funds generally demonstrated relatively stable and consistent performance, particularly corporate bond funds. Hybrid funds, especially arbitrage and multi-asset funds, also performed favorably during several months. The study concludes that mutual fund performance is influenced by changing market conditions and differs across investment categories. Therefore, investors should diversify their investments according to their risk tolerance, financial objectives, and investment horizon. Regular evaluation using risk-adjusted performance measures can assist investors in making informed investment decisions and achieving effective portfolio management.