Risk-Return Dynamics in Indian Equity Mutual Funds: Decoding 10-Year Performance Across Large-, Mid-, and Small-Cap Segments

Abstract

This study is based on the analysis of the risk and returns of the selected large-cap, mid-cap, and smallcap funds equity mutual fund schemes for the period of 10 years from 2015-2024.

The main objective of the study was to analyze the risk and return of the selected equity mutual fund schemes and to find the relationship between return and volatility for past 10 years. To acquire an overview of the current performance patterns of the Indian mutual fund, secondary data have been used and collected from several websites AMCs, AMFIs, moneycontrol.com, newspapers, journals, books, and magazines. The proper statistical and mathematical techniques, such as beta, standard deviation, covariance, Sharpe ratio, and Treynorratio, were used to analyze the current study.

The study found that the small-cap funds were having highest returns as compare to the large-cap and mid-cap equity funds schemes. The study concluded that the schemes had low risk and provided consistent returns to the investors over a period of time. The study suggested that the investors need to analyze carefully before investing in any mutual funds as it involves market risk and different funds are performing in different way.