Evaluating The Performance Of Selected Asset Management Companies In India: An Empirical Analysis

Abstract

This study examines the financial performance of NIFTY 50, HDFC Mutual Fund, and SBI Mutual Fund from 2018 to 2023, focusing on risk-adjusted returns using the Sharpe and Treynor ratios. The research highlights the fluctuations in these ratios over the years, particularly during significant market events such as the COVID-19 pandemic. The study finds that all three entities experienced notable volatility in their risk-adjusted performance, with NIFTY 50, HDFC, and SBI posting negative ratios in 2018, followed by a strong recovery in 2019. The pandemic in 2020 caused significant declines, with the Sharpe and Treynor ratios plummeting to their lowest levels across the board. However, the second half of 2020 and 2021 marked a remarkable recovery, with HDFC and SBI outperforming NIFTY 50 in terms of risk-adjusted returns. The analysis also reveals that while HDFC exhibited more pronounced fluctuations, it delivered the highest returns during periods of recovery. The study concludes that despite market volatility, all three entities demonstrated resilience, with strong recoveries in 2021 and renewed stability in 2023, underscoring their capacity to generate positive risk-adjusted returns. These findings offer valuable insights into the performance dynamics of asset management companies (AMCs) in India and provide a basis for informed investment decisions.