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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM67714
Volume:
10 |
10 |
Oct 2026
Pages:
1-12
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
Faculty of Management Studies, Department of Business Management,
Sankalchand Patel University, Visnagar
Faculty of Management Studies, Department of Business Management,
Sankalchand Patel University, Visnagar
Faculty of Management Studies, Department of Business Management,
Sankalchand Patel University, Visnagar
Faculty of Management Studies, Department of Business Management,
Sankalchand Patel University, Visnagar
The Indian financial market has witnessed substantial transformation over the past two decades, with mutual funds emerging as a preferred investment avenue for retail and institutional investors. Mutual funds provide diversification, liquidity, and professional fund management, making them suitable for individuals with varying risk appetites and financial objectives. The industry’s growth has been supported by rising financial literacy, digital platforms, increasing disposable incomes, and regulatory initiatives by SEBI and AMFI, leading to a significant increase in Assets Under Management (AUM). This study undertakes a comparative secondary data analysis of equity, debt, and hybrid mutual fund categories in India to evaluate their risk–return dynamics. Equity funds are characterized by high return potential but greater volatility, debt funds emphasize stability and predictable income, while hybrid funds balance risk and reward by combining equity and debt components. The analysis also considers the impact of macroeconomic variables such as inflation, interest rates, and market volatility, alongside policy measures including taxation reforms introduced in the Union Budget 2024–26, which notably altered the tax treatment of debt mutual funds. The findings of this research aim to provide insights into the relative performance of mutual fund categories, enabling investors, fund managers, and policymakers to make informed decisions. By systematically evaluating risk-adjusted returns and category-specific characteristics, the study contributes to the broader literature on mutual fund performance and offers practical guidance for navigating India’s evolving financial landscape.
KEYWORDS
The evaluation of mutual funds in India demonstrates the dynamic interplay between risk–return characteristics, macroeconomic conditions, and regulatory reforms. Equity funds continue to be the most effective vehicle for long-term wealth creation, offering high returns but accompanied by significant volatility. Debt funds, while traditionally valued for stability and tax efficiency, have lost some attractiveness following the Union Budget 2026–27 reforms that removed indexation benefits. Hybrid funds emerge as a balanced alternative, appealing to moderate-risk investors by combining equity growth with debt stability. The findings highlight that mutual fund performance is not solely determined by market forces but is also shaped by fiscal policies, taxation structures, and investor sentiment. This underscores the importance of aligning investment decisions with both risk appetite and the evolving policy environment. From a research perspective, this study bridges critical gaps by providing a comparative secondary data analysis of equity, debt, and hybrid funds in the Indian context, integrating risk–return metrics with macroeconomic and policy variables. The insights generated are valuable for investors seeking optimal fund selection, fund managers designing competitive products, and policymakers aiming to sustain investor confidence in the mutual fund industry.
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Publication Date
10/7/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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Conflict of Interest
The authors declare no conflict of interest related to this research work.
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