Exercise 3:

Performance of Mutual funds in India

Step 1 : Choose any two mutual funds . Provide justification for those mutual funds like why the
particular AMC chosen and why the particular fund , when they are thousands of fund available

Step 2: Download the daily NAV of the fund from AMFI website for at least 3 month from 1st Jan 2020 (
if you can collect one year data- Well and good)

Step 3 : Export both the funds NAV to an Excel sheet

Step 4 : Calculate the daily returns by using the formula ( Pt / P t-1 ) -1

Step 5: Calculate standard deviation of the daily return

Step 6 : Risk free rate is treasury bill rate, I have assumed 6% per annum

Step 7 Calculate Sharpe ratio of the fund using the formula

The Sharpe ratio uses standard deviation to measure a fund's risk-adjusted returns. The higher a fund's
Sharpe ratio, the better a fund's returns have been relative to the risk it has taken on.