Comparative Performance Evaluation of Indian Mid-Cap Mutual Funds: Evidence from Risk and Return Measures.
Keywords:
Mid-Cap Mutual Funds, Mutual Fund Performance, Risk-Adjusted Performance, Net Asset Value (NAV), Portfolio Evaluation, Assets Under Management (AUM)Abstract
The mutual fund industry in India has experienced significant growth over the past decade, leading to increased investor interest in equity-oriented investment avenues, particularly mid-cap mutual funds. Given the higher growth potential and relatively greater volatility associated with mid-cap investments, a comprehensive evaluation of their performance is essential for informed investment decision-making. The present study evaluates the performance of ten selected mid-cap mutual funds in India over the period 2017–2026 using a combination of return, risk-adjusted performance, portfolio characteristics, and fund strength indicators. The study is based on secondary data collected from reliable sources, including Value Research, the Association of Mutual Funds in India (AMFI), and the respective Asset Management Companies. Performance was assessed using established measures such as Annual Return, Compound Annual Growth Rate (CAGR), Excess Return, Standard Deviation, Beta, Alpha, Sharpe Ratio, Sortino Ratio, and Assets Under Management (AUM). In addition, a Composite Mutual Fund Performance Score (CMFPS) was developed by integrating Return Performance, Risk-Adjusted Performance, Portfolio Quality, and Fund Strength into a single evaluation framework. The findings reveal considerable variation in the performance of the selected mutual funds and indicate that no individual performance measure is sufficient to evaluate overall fund efficiency. The CMFPS provides a comprehensive basis for comparing and ranking mutual funds by simultaneously considering multiple dimensions of performance. The study offers useful insights for investors, financial advisors, and researchers by proposing a holistic framework for mutual fund performance evaluation.
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