Growth and Performance of Debt Mutual Fund Schemes in India

  • Kamalpreet Kaur Research Scholar, Department of Commerce, Punjabi University, Patiala, Punjab, India
  • J.S. . Pasricha Professor, Department of Commerce, Punjabi University, Patiala, Punjab, India, 98764-50493
Keywords: Mutual Funds, Long term debt schemes, Short term debt schemes, Beta, Returns.


Mutual Fund is a trust that pools the money from small investors who share common financial goal and invests the collected money in securities market. There are numerous options available to investors characterized on the basis of risk factor, return factor, tax benefits etc. Among these, debt mutual fund schemes are better for conservative investors who need regular and steady return. In the present study, the growth of debt schemes has been examined and the performance of long term and short term debt schemes have been evaluated on the basis of risk and return and further compared with respective benchmark indices viz. CRISIL Composite Bond Fund and CRISIL Short Term Bond Fund. The data was collected from secondary sources, such as official websites of AMFI, RBI, SEBI for the period 1st April, 2007 to 31st March, 2017. A major decline in resources mobilized in contrast to number of schemes was observed during the study period.  was It was observed that the returns were accelerated during last years of the study due to reduction in interest rates by RBI, though the increase in returns could not beat the benchmark index on the basis of risk and return measures. Further, it was found that the schemes of Birla Sun Life and Franklin India mutual fund performed better in terms of return and risk-adjusted measures on comparative basis.


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