A STUDY ON RISK AND RETURN ANALYSIS OF EQUITY MUTUAL FUNDS USING SECONDARY MARKET DATA

Equity mutual funds have emerged as a significant investment avenue for both retail and institutional investors seeking long-term capital appreciation and portfolio diversification in modern financial markets. With the rapid expansion of the mutual fund industry, the need for systematic evaluation of fund performance in terms of risk and return has become increasingly important. Despite the wide availability of mutual fund schemes, investors often face challenges in determining whether these funds generate adequate returns relative to the level of risk undertaken. This study examines the risk–return characteristics of selected equity mutual funds using secondary market data obtained from published financial reports, mutual fund fact sheets, and financial databases.

The study adopts a quantitative research design and evaluates key performance indicators such as average return, standard deviation, and beta to measure return performance and market risk exposure. Descriptive statistics, correlation analysis, and regression analysis are employed to investigate the relationship between risk and return. The empirical analysis reveals a strong positive association between risk indicators and mutual fund returns, indicating that funds with relatively higher volatility tend to generate superior returns over the study period.

The findings highlight the importance of risk-adjusted performance evaluation in mutual fund investment decisions. The study concludes that equity mutual funds generally provide competitive market-linked returns, but their performance significantly depends on risk management and portfolio strategy. The research contributes to capital market literature by offering empirical insights into mutual fund performance evaluation and provides practical implications for investors, portfolio managers, and policymakers.