Comparative Study of Various Sectorial Mutual Funds

Abstract

Mutual fund is a trust that pools the savings of a number of investorswho share a common financial goal. Money collected from investors is invested in capital market instrument such as shares, debentures and other securities. Income earned through these investments and the capital appreciations realized are shared by its units holder in proportion to the number of units owned by them. Thus a mutual fund is the most suitable investment to the common man as it offers an opportunity, to invest in a diversified, professionally managed basket of securities at relatively low cost. This paper attempts to discuss various types of sectorial mutual funds and its comparative analysis between two mutual funds from each category. Furthermore Sharpes, Treynors ratios are also being used along with hypothesis testing to substantiate the validity of the test.