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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM64988
Volume:
10 |
6 |
Jun 2026
Pages:
1-31
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.
School Of Finance & Commerce
Galgotias University
School Of Finance & Commerce
Galgotias University
School Of Finance & Commerce
Galgotias University
A functioning financial system assists economic growth through the efficient allocation of savings to profitable investments and effective use of monetary resources. In recent years, mutual funds have grown to become the largest and most commonly chosen investment avenues for both individuals and organizations, allowing the investors to get access to a diversified portfolio and earn a better return at a lower risk under the guidance of expert managers. A mutual fund is a type of intermediary between investors, that pools in funds from a large group of investors, and invest in various securities like stocks, debt, money market instruments, etc., to obtain good returns with a lower risk using diversified portfolio management techniques and expert management. The Indian Mutual Fund industry is among the most important and developing funds industry, driven by rising financial literacy, technological advancement and favorable regulatory environment. Strict measures are imposed by Securities and Exchange Board of India (SEBI) to supervise, regulate and promote mutual funds to ensure transparency and investors' interests. In a range of asset management companies in India, SBI Mutual Fund is one of the biggest fund providers and is one of the most trusted fund houses in India. It has a wide variety of scheme which are suitable to different categories of investors according to varying risk appetite and investment objectives. Strong distribution reach and the well-known brand name of SBI have been other contributing factors for its market position and popularity. Despite rising participation in mutual funds, the investors often face problems while assessing and comparing performance of different schemes. Investors assess mutual funds on return only, disregarding the associated risk. For making rational investment decisions, both risk and return are assessed simultaneously. In this study, an attempt has been made to investigate risk-return of specific SBI Mutual Fund schemes during a specified period of time. Multiple statistical and financial techniques have been used to ascertain the return against the risk involved in various schemes and investors are given interpretation. In India, mutual fund investment has more recently occupied a considerable position in investors' minds as it could render profitable return and diversify investment in the Indian capital market. However, picking out a proper mutual fund scheme has not always been an easy task as different schemes involve different levels of risk and return. This paper attempts to determine risk and return measures of five selected SBI Mutual Funds taken from different categories. SBI Mutual Fund has been chosen as a prominent fund house in India with various offerings and a wide range of funds. The time period of this study extends from 2020 to 2025 as this time is considered due to volatile market condition followed by recovery post pandemic along with change in investment behaviors and related factors. This study tries to achieve insights to investment decisions by correlating risk and return.
KEYWORDS
This study was undertaken to assess the performance of selected SBI Mutual Fund schemes through various risk and return measurements. Five selected funds; SBI Large Cap Fund, SBI Midcap Fund, SBI Small Cap Fund, SBI Equity Hybrid Fund and SBI Banking & Financial Services Fund have been taken into account. Return generating ability and risk-adjusted performance of selected five schemes were examined through various indicators of performance such as annualized returns, standard deviation, beta and Sharpe Ratio. From the study result it can be said that performance of selected five mutual funds differ according to the time period and time horizons such as SBI Midcap Fund and SBI Small Cap Fund show very strong return generating potential over long time horizons. For medium time frame, SBI Banking & Financial Services Fund shows better performance, and obtained best Sharpe Ratio also. It can be seen that SBI Equity Hybrid Fund is relatively a stable scheme with less volatility and also provides investors reasonable return. Also, this study confirmed that there is a positive relation between risk and return for the investments made through mutual funds. Thus, mutual funds offering a higher degree of return were more prone to higher risk. Moderate returns were offered by relatively safe schemes. In conclusion, we must not analyse a mutual fund purely on return value but consider other factors too such as risk also. Furthermore, study has also focused on diversified and informed investment choice. Each category of mutual fund serves specific investor need hence, the study suggested investors should carefully consider their objectives, investment time frame and risk appetite before selecting a particular fund category. According to the result of study no single mutual fund can be said best, in every situation, investment depends upon the individual circumstances. Coefficient has value of 0.874 from which there is a strong positive correlation found in between risk and return. Hence Alternative Hypothesis (H) is accepted and null hypothesis (H) is rejected. The study identifies SBI Midcap Fund as the best scheme for return generating performance over long run. The study identifies SBI Small Cap Fund as high risk generating fund. The study identifies SBI Banking & Financial Services Fund as better performing scheme based on Sharpe Ratio. The five selected SBI Mutual Funds, performed satisfactorily during the period of study and have offered investors with different investment options. The conclusion is that Mutual Funds are and will remain beneficial as an investment medium for wealth generation, diversification, portfolio building and long-term wealth creation planning, for all individuals. These results can also be helpful for investors, financial advisors and researchers involved with research on mutual funds.
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Publication Date
6/14/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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