study are only those with the growth option as this will not warrant any dividendadjustments to the published NAV data. The sample period spans over the 2003-2007.
1,3,5 yrs absolute returns were calculated for all the 19 schemes.1,3,5 yrs Excess returns were also calculated as absolute returns doesn't account for overall market movements.we then used have used Sharpe's, Treynor's and Jensen'smeasures which takes into account not only the market performance but also theriskiness of the scheme.
III PERFORMANCE ANALYSIS
We started the performance evaluation by looking at raw returns which is defined asunder:WhereRt = Daily return of a mutual fund in the period t NAVt = Daily net asset value per unit of the mutual fund in the period tSince the sample is restricted only to growth oriented schemes there is nointermediate income and hence no adjustments for dividends are required. Return aloneshould not be considered as the basis of measurement of the performance of a mutualfund scheme, it should also include the risk taken by the fund manager becausedifferent funds will have different levels of risk attached to them. Risk associated with afund, in a general, can be defined as variability or fluctuations in the returns generated by it.The higher the fluctuations in the returns of a fund during a given period, higher will bethe risk associated with it. These fluctuations in the returns generated by a fund areresultant of two guiding forces.First, general market fluctuations, which affect all the securities, present in the market,called market risk or systematic risk and second, fluctuations due to specific securities present in the portfolio of the fund, called unsystematic risk. The total risk of themutual funds under consideration is measured by the standard deviation of the dailyreturns which was calculated as follows: Where,S = Standard deviation (total risk) of the mutual fundn = Number of daily returns