Abstract

This concept note explains the methodology involved in analyzing the risk weighted performance of a mutual fund. It analyzes the risk weighted performance of Morgan Stanley Growth Fund, a close ended equity mutual fund with its benchmark BSE 200, BSE Sensex and other close and open ended equity mutual funds including IDFC Enterprise Equity Fund, Taurus Star Share Fund, DSPML Tiger and Magnum Multiplier Fund. The note evaluates the fund’s performance based on three different measures namely Sharpe’s Ratio, Treynor’s Ratio and Jensen’s Alpha to rank the performance of these equity mutual funds. This concept note is designed for students of Finance curriculum and can be discussed with the chapter on Portfolio Management and Security Analysis. It can also be discussed in a training program for executives employed in Mutual Fund companies.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• 0

Keywords

Mutual Funds, Risk and Return, Risk Weighted Performance, Morgan Stanley Growth Fund, IDFC Enterprise Equity Fund, Taurus Star Share Fund, DSPML Tiger Fund, Magnum Multiplier Fund, Portfolio Management, Security Analysis, Close-ended Mutual Fund, Open-ended Mutual Fund, Sharpe's Ratio, Treynor's Ratio, Jensen's Alpha, SEBI Guidelines for Mutual Funds, Beta, Standard Deviation, Mutual Fund Performance Benchmark, Risk Free Return