A Performance Study on Sectoral and Diversified Mutual Fund Among Selective AMC’s

A Performance Study on Sectoral and Diversified Mutual Fund Among Selective AMC’s

Dr. R. Chandrasekaran Professor

B. Com Finance, Dr. N. G. P. Arts and Science College (Autonomous), Coimbatore

Mr. Aafreen P (III B.com Finance),

Dr. N. G. P Arts and Science College (Autonomous), Coimbatore

Abstract

This study examines the performance of sectoral and diversified mutual funds managed by selected Asset Management Companies (AMCs) in order to determine their risk-return profiles and investor preferences. Sectoral funds, which focus on certain industries, produce better returns but are more volatile, whereas diversified funds provide consistent returns by investing across numerous sectors. Statistical approaches such as Sharpe Ratio, t-tests, and regression analysis were used to analyze primary data from 80 investors as well as secondary data from 2013-2024. The findings show that sectoral funds produce better long-term gains but are more risky, whereas diversified funds provide consistent performance with lower volatility. The study focuses on the impact of AMCs, fee ratios, and market circumstances on mutual fund performance, providing significant insights for investors, analysts, and policymakers looking to optimize investing strategies.

Keywords

Mutual Funds, Sectoral Funds, Diversified Funds, Asset Management Companies, Investment Performance, Risk-Return Analysis, Investor Preferences.