Risk And Return Analysis of Aggressive Hybrid Funds Offered by Indian Banking Industry: A Comparative Approach

Abstract

This paper presents a comprehensive analysis of aggressive hybrid mutual funds offered by the Indian banking industry. The study evaluates the risk and return characteristics of these funds, aiming to provide insights and recommendations for investors seeking to invest in this category. The research employs a quantitative research design, utilizing historical data from nine selected funds operating between 2019 and 2022. Various performance metrics, including standard deviation, beta, Sharpe ratio, Treynor ratio, and Jensen's alpha, are used to assess risk-adjusted returns and volatility. Findings reveal significant variations in the performance of different funds, with some consistently delivering attractive risk-adjusted returns, while others display moderate fluctuations. Notably, Canara's mutual fund emerges as the best performer, exhibiting exceptional risk-adjusted returns and positive excess returns beyond market expectations. On the other hand, BOI's and Bandhan's mutual funds fall into the underperforming category with comparatively lower risk-adjusted returns and excess returns.