Risk and Return Analysis of Mid-Cap and Small-Cap Mutual Funds

Abstract

Comparative analysis can be carried out based on the performance of equity mutual funds or balanced mutual funds. The debt mutual funds do not provide much variation in their returns, and they have a similar risk. The study is analytical in nature. Return and risk of Small-cap and Mid-cap mutual funds have been evaluated. The mutual funds have been selected based on the AUM. The mutual funds that have the highest AUM were selected in the category of Small and Mid-cap mutual funds. The returns have been evaluated for selected mutual funds, and these returns include 1 week, 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 5 years and 10 years for Small and Mid-cap mutual funds. Further annual returns have been evaluated for the selected mutual funds for the period from 2020 to 2025. Besides returns, risks associated with Small and Mid-cap mutual funds have been considered to evaluate the best fund for investment in future. The study further considered testing of the hypothesis with the application of ANOVA for finding out significant differences in risk and return among various forms of mutual funds that have been selected.