STOCK SELECTION AND MARKET TIMING ABILITY OF FUND MANAGERS: ANALYSIS OF SELECTED INDIAN EQUITY FUNDS

Collective investment plans, which combine investors' resources to engage in various fund schemes, play an important role in the economy by utilising funds in various sectors such as the stock market and bond market. Since its start, the sector has seen major changes and challenges. Within the context of this research, the performance of managers controlling banking and financial funds is evaluated in terms of their ability to identify investments and their market timing abilities from April 2016 to March 2021. In this study, the Bank Nifty index acts as the benchmark. Esteemed models such as Jensen alpha, Fama net selectivity, the Traynor & Mazuy model, and the Henrikson & Merton model are used to evaluate their performance. According to the study's findings, most of the schemes examined had positive alpha, suggesting favourable performance. Furthermore, while a large proportion of fund managers have high selectivity abilities, the vast majority lack acceptable market timing skills.