ANALYSING THE PERFORMANCE OF INFRASTRUCTURE EQUITY FUNDS: AN EMPIRICAL STUDY IN THE INDIAN CONTEXT

Abstract

Indian mutual fund industry has become one of the fastest growing sectors. Thematic funds deal with a particular theme and not a specific sector. Infrastructure equity theme funds have been around for a while in the Indian markets. The main objectives of the study are: (a) to observe the portfolio characteristics of the chosen funds; and (b) to examine the performance of the chosen funds in terms of risk-return parameters. The study is based on secondary data. The period of study is from September 2008 to September 2015. Here, nine funds which are in existence for more than seven years and have net assets of more than INR 150 crore as on 30 th September, 2015 are selected. It is found that the chosen funds were heavily inclined towards equity. All the funds were defensive and outperformed the benchmark during the entire study period in terms of risk-adjusted return. Funds were adequately diversified. Further, fund managers had superior stock-picking skills.