A Comparative Empirical Analysis of Public and Private Sector Mutual Funds in India: Evidence from Risk–Return Dynamics and Market Cycle Performance

Paper ID: EIJTEM_2025_12_4_296-302

Author's Name: Dr.C.Viswanatha Reddy, P.Radhika

Volume: 12

Issue: 4

Year: 2025

Page No: 296-302

Abstract:

The primary aim of this study is to systematically compare the performance of public and private sector mutual funds in India by analysing their risk–return behaviour, volatility patterns, and overall managerial efficiency. The purpose is to offer meaningful insights to investors, policymakers, and fund managers regarding how ownership structure influences fund outcomes across different market cycles. Employing an empirical research design, the study relies exclusively on secondary data drawn from major mutual fund schemes over multiple years, capturing both bullish and crisis phases. Statistical tools such as descriptive statistics, Sharpe Ratio, Treynor Ratio, Jensen’s Alpha, standard deviation, t-tests, ANOVA, and regression analysis are used to evaluate performance consistency and risk-adjusted returns. The results reveal distinct sectoral differences: private sector funds often generate higher average returns but exhibit greater volatility and sensitivity to market fluctuations, while public sector funds demonstrate more stability, lower downside risk, and better performance during unstable periods. These findings align with broader market patterns, as seen in year-wise index comparisons where fund performance closely tracks macroeconomic shifts and market-wide volatility. The novelty of this study lies in combining multi-metric evaluation with index-based performance behaviour, offering a comprehensive view rather than relying on a single performance measure. The research also introduces a generalizable framework for comparative fund assessment that can be applied across emerging markets. Overall, the study is quantitative, empirical, and comparative in nature, contributing actionable insights for informed fund selection and improved mutual fund management practices.

Keywords: Public Sector, Private Sector Mutual Funds, Risk-Return Analysis, Empirical Evaluaution

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