Risk And Return Analysis Of Midcap Funds

(with special reference to selected Asset Management Companies in India)

Abstract

A mutual fund is a sort of collective investment vehicle that collects money from a large number of individuals and invests it in order to achieve a certain goal, with returns given to participants on a pro-rata basis in proportion to their investment. Investing in mutual funds does not eliminate risk; nevertheless, based on the total number of assets managed by the AMCs, the investor must bear the entire expense ratio, which affects the investment's returns and determines whether the returns are influenced by market returns. This study selects ten asset management companies based on their CRISEL ratings, with DSP having a higher standard deviation and higher returns than the other AMCs, and HDFC being more volatile. Just a couple AMCs. Finally, we accept the null hypothesis, implying that there is no substantial causal association between all AMC mid-cap funds and the benchmark index S&P BSE 150. However, Axis mid-cap funds and L&T mid- cap funds have unidirectional Granger causation with the S&P BSE 150 benchmark index, therefore we reject the null hypothesis.