SBI Mutual Fund Schemes: An Analysis of Risk & Return

Mutual fund companies are financial intermediaries providing financial services to small investors through mobilization of funds, when the investors invest in a mutual fund they are buying units of the mutual fund and become a unit holder of the fund. Mutual funds provide a readymade option to households for portfolio diversification as well as relative risk aversion. Performance of mutual funds depends on the performance of the underlying portfolio. If one or more schemes perform badly in the portfolio, that can affect the investment decisions of investors and may get them out from the scenario of the wealth creation process. For saving investor‟s money from such a hazard, it becomes necessary to evaluate the performance of mutual fund portfolio so that investors can take their investment decisions rationally. This paper evaluates the risk & return analysis of five equity open- ended SBI mutual fund schemes in India for the period from 1st Jan 2018 to 31st Jan 2019. Each selected scheme represents different sectors like Banking sector, Technology, FMCG & Pharma and Infrastructure. Statistical tools like average, standard deviation, beta have been used for analysis. The study concludes that SBI Technology fund stands on 1st position because it is providing a good return of 18.12 % as compared to other schemes.