Title:-A Comparative Analysis of Risk-Adjusted Performance and Long-Term Wealth Creation of Selected Equity Mutual Funds in India Download
Authors:-Mrs Prathima A/Dr. Hanmanth Mustari

Author’s Details :

1. Mrs Prathima A

Vice principal, Sri Ramakrishna college, Mangalore and Research scholar, Karnatak University, Dharwad.

2. Dr Hanmanth Mustari

Assistant Professor, Department of PG Studies in commerce, Karnatak University, Karwar.

Date of Publication (ONLINE) :-17-08-2026
Online Publication Certificate No. :- IJCBM/2311

DOI :-10.71037/ijcbm.v2i3.11

How to cite this article:
A Mrs Prathima /Mustari Dr. Hanmanth, “A Comparative Analysis of Risk-Adjusted Performance and Long-Term Wealth Creation of Selected Equity Mutual Funds in India” IJCBM, Vol-2, Issue-3, July-Sept., 2026, Page No. :-128-140. URL : https://ijcbm.gyanvividha.com/wp-content/uploads/2026/09/Mrs-Prathima-A-Dr.-Hanmanth-Mustari-IJCBM-vol-2-issue-3-July-Sept.-2026-pp-128-140.pdf

Abstract : This study examines the risk-adjusted perfor-mance and wealth creation ability of selected equity mutual funds in India. The objectives are to evaluate and compare the performance of selected funds, assess their capacity to generate long-term wealth, and examine whether funds with superior risk-adjusted performance also create higher wealth for investors. The analysis is based on monthly Net Asset Value data obtained from the Association of Mutual Funds in India, benchmark index data from the National Stock Exchange, and the 91-day Treasury bill yield from the Reserve Bank of India as the proxy for the risk-free rate. The study period covers January 2023 to July 2025. Monthly returns were calculated from NAV data, and risk-adjusted performance was evaluated using the Sharpe ratio, Treynor ratio and Jensen’s alpha. Wealth creation was assessed through cumulative return, compound annual growth rate and terminal wealth, assuming an initial investment of ₹1 at the beginning of the study period. The results reveal variation in both risk-adjusted performance and wealth generation among the selected funds. ICICI Mutual Fund shows the highest Sharpe ratio and Jensen’s alpha, while SBI Mutual Fund records the highest Treynor ratio. LIC Mutual Fund generates the highest cumulative return, CAGR and terminal wealth. The comparison of rankings indicates that funds with stronger risk-adjusted performance do not always produce the highest wealth outcomes. The findings emphasise the importance of evaluating mutual funds using both performance and wealth indicators.

Keywords: Equity mutual funds, Risk-adjusted performance, Wealth creation, Sharpe ratio, Treynor ratio, Jensen’s alpha.

Publication Details:

Journal : Indian Journal of Commerce, Business & Management (IJCBM)

ISSN : 3108-057X (Online)

3108-1282 (Print)

Published In : Volume-2 | Issue-3, July-Sept., 2026.

Page Number(s) : 128-140

Publisher Name :

Mrs Anubha Chaudhary | https://ijcbm.gyanvividha.com | E-ISSN 3108-057X | P-ISSN 3108-1282