INVESTMENTS IN MUTUAL FUNDS DURING RECESSION AND POST-RECESSION PERIODS IN INDIAN CONTEXTAN OPTIMIZATION

Abstract

In India, there are a lot of investment avenues available to investors. But when it comes to capital market investing, retail investors’ participation is divided into active and passive ways of investing. The most appealing investment alternative for small investors is the Mutual Fund. Mutual funds provide a platform to common investors with low saving capacity to invest their funds in the capital market. The evaluation of performance of various mutual fund schemes becomes more complex for the retail investors in order to accommodate both the risk and return element while giving due importance to their investment objectives. With the changing market conditions, it may sometimes become difficult for the investors to earn a positive return consistently during all phases of market situation from a portfolio of mutual funds. In this paper, an attempt has been made to construct a well diversified portfolio of mutual funds with optimum weights assigned which may generate positive return during different phases of the market.