A Comparative Analysis of Large, Mid and Small Cap Mutual Funds Performance in India

The best and easy way today to make wealth is to invest in Mutual funds. Mutual funds are managed by full time professionals who are experts in returns and who can diversify your investments. The main advantage of investing in mutual funds is affordability and convenience. Here the Policy is to scatter the risk, not to put all the eggs in one basket. The best way to identify a mutual fund is to first understand the investment needs, based on which the selection of mutual funds depends. Based on the market capitalization mutual funds are divided into large, mid and small cap funds. The present study is aimed at understanding the performance of large, mid and small cap mutual funds over a period of seven years from 2015 to 2022 in India. Aim is to understand the performance of these funds and educate investor how to choose a best mutual fund for his investment. For the study 30 Large cap mutual funds and 30 mid and small cap mutual funds are considered and their performance is compared for the 1st, 3rd and 5th year.The study revealed that there is no much difference in the performance of large, mid and small cap mutual funds for the study period. But there are differences in their Apha, Beta, Sharpe and Sortino ratio when compared to the 1st, 3rd and 5th year indicating higher the ratios, higher the possibility of higher returns in the long run. This indicates the importance of expertise knowledge of fund managers in choosing appropriate funds for profit maximization. The present study will educate an investor in choosing a best mutual funds for their investment.