Performance Evolution of Unit Trust of India Mutual Funds

Abstract

Mutual funds are the significant financial intermediary collecting funds mainly from small investors and investing them in financial market securities. Thus, the mutual funds industry offer several benefits to the investors like diversification, professional management, tax benefits, transparency, liquidity, flexibility, choice of schemes and low cost etc. The paper tries to find out the performance of mutual funds in public sector in respect of four parameters i.e.  mobilization of funds,  redemption/repurchase, cumulative net assets position and net inflow/outflow with the help of Trend Analysis, Growth Rate, Fixed-Base Index, Link-Relative Index, Coefficient of Correlation, ‘t’ test and Coefficient of Determination. The study covers the period of twelve years i.e. from the year 1998-99 to 2009-10. The study based on the secondary data which has been collected from the fact books and published annual reports for the period of twelve years. The paper found that there is a good sound position in the public sector mutual funds with respect to mobilization of funds and redemption/repurchase during the study period. Further, the study indicates that there is a divergent trend is observed in respect of the cumulative net assets position and inflow/outflow of the funds. The paper also found that there is the high degree of relationship between the different-variables of mutual funds.

Keywords: Cumulative net assets position, Mobilization of funds, Public sector mutual funds, Redemption/ repurchase, and Net inflow/outflow.