A Linear Programming Approach for Efficiency Measurement of Selected Mutual Funds in India
摘要
The study assesses the performance of certain Indian mutual funds, highlighting the industry's efforts to adapt to economic shifts. Despite quick reactions to investor perceptions, mutual funds are still catching up. Non-parametric Data Envelopment Analysis (DEA) is employed, using linear programming to evaluate efficiency scores and optimal input/output values. Factors considered include beta, costs, initial capital, variance, total assets, and performance metrics like alpha, annual return, and Sharpe ratio. Findings reveal that only HDFC, ICICI Prudential, and SBI mutual funds score 1 in efficiency, outperforming others. Birla Sunlife, HDFC, ICICI Prudential, Nippon India, and SBI lead in efficiency, while Axis Bank, Kotak, and UTI trail. This research aids Indian investors in gauging mutual fund efficiency.