Risk-Adjusted Performance Analysis of Conservative Hybrid Mutual Funds: A Comparative Study of Public and Private Sector Schemes in India

Abstract

In the Indian capital market, wide range of investment avenues are available for individuals looking to grow their wealth, including equity shares, bonds, treasury bills, corporate bonds, and mutual funds. Among these alternatives, mutual funds have emerged as one of the most preferred investment options due to their potential to generate attractive returns while offering diversification and professional management. In recent years, mutual funds have gained significant popularity as they pool funds from multiple investors and invest in a diversified portfolio of securities in accordance with predefined investment objectives. Their professional management and ease of investment make them particularly suitable for small investors with limited financial expertise or time. The present study was undertaken to compare some selected conservative hybrid mutual fund schemes of the Indian mutual fund industry for a period from January 2020 to December 2024. The main focus was on evaluating and comparing the performance of these funds and comparing their risk-return characteristics. The analysis was based on historical NAVs, BSE S&P 500 data, and Factsheets published by various AMCs, etc. Various statistical tools such as Rate of Return (RoR), Jensen Alpha, Beta, Standard Deviation, Sharpe Ratio, and Treynor’s Ratio for were used to assess performance and risk-adjusted returns. The findings indicate that Kotak Debt Hybrid Fund (private sector) and Canara Robeco Conservative Hybrid Fund (public sector) outperformed over the five-year study period. The study highlights the importance of evaluating risk tolerance and investment objectives before selecting mutual fund schemes. Furthermore, investors should carefully analyze historical performance and risk indicators to ensure that their investment choices align with their financial goals and risk preferences.