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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM65488
Volume:
10 |
6 |
Jun 2026
Pages:
1-10
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.
Dept of Commerce,
Government City College(A), Hyderabad
Dept of Commerce,
Government City College(A), Hyderabad
The rapid expansion of the Indian mutual fund industry, with Assets Under Management surpassing Rs. 45 lakh crores by March 2025, necessitates rigorous performance evaluation to guide informed investment decisions. This study undertakes a dual-pronged empirical investigation: first, it evaluates the risk-adjusted performance of five prominent large-cap equity mutual fund schemes in India over a five-year period (FY2021-FY2025); and second, it examines investor awareness, preferences, and behavioural patterns through a structured survey of 50 retail investors in Hyderabad. Performance is measured using mean returns, standard deviation, Sharpe Ratio, Treynor Ratio, and Jensen's Alpha, benchmarked against the Nifty 50 Index. Survey data are analysed using frequency and percentage analysis. Results indicate that HDFC Top 100 Fund delivered the superior risk-adjusted performance (Sharpe Ratio: 1.150; Jensen's Alpha: 5.42%), while Axis Bluechip Fund consistently underperformed its peers and the benchmark. All funds except Axis generated positive alpha, confirming active management value for large-cap mandates. On the investor behaviour dimension, equity funds are most preferred (48%), with Systematic Investment Plans (SIPs) dominating as the investment mode (70%). Wealth creation (44%) is the primary investment motivation, and 80% of respondents are currently invested in mutual funds, reflecting a maturing retail investor culture. The study contributes to the empirical literature on emerging-market mutual fund performance and provides actionable policy implications for fund managers, SEBI, AMFI, and financial educators.
KEYWORDS
This study provides a comprehensive empirical assessment of large-cap equity mutual fund performance in India during the highly distinctive FY2021-FY2025 period, combining quantitative risk-adjusted analysis with investor behavioural survey evidence. The principal findings are threefold. First, four of the five selected large-cap funds -HDFC Top 100, ICICI Prudential Bluechip, SBI Bluechip, and Kotak Bluechip -generated meaningful positive alpha (4.30%-5.42%) and Sharpe Ratios exceeding the Nifty 50 benchmark, demonstrating that skilled active management retains value in the Indian large-cap segment. HDFC Top 100 Fund emerged as the consistent outperformer across all three risk-adjusted measures. Axis Bluechip Fund's underperformance underscores the performance risk of concentrated factor tilts over a full market cycle. Second, all four outperforming funds supported the rejection of the null hypothesis of zero alpha and zero benchmark outperformance, providing robust evidence against passive management superiority in this segment and context. Third, the investor survey reveals a maturing but still evolving retail investor landscape: SIP-led investment discipline is strong, equity fund preference is dominant, and long-term wealth creation is the primary motivator -yet financial confidence gaps persist, particularly among female and first-generation investors.
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Publication Date
6/26/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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The authors declare no conflict of interest related to this research work.
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