Analysis of performance of mutual funds of SBI and HDFC: A comparative study

This study examines how well mutual fund schemes from the State Bank of India (SBI) and HDFC Bank have performed from 2015 to 2025. It focuses on six types of funds: flexi cap, small cap, liquid, large- and mid-cap, equity hybrid, and arbitrage funds. This study examines fund performance using annual returns and risk measures such as the Sharpe ratio, Sortino ratio, beta, and Jensen's alpha. The results show that performance changes depending on the fund and period. HDFC funds usually perform better in the short-to medium-term, while SBI funds are stronger over longer periods in some categories. HDFC funds are more volatile but often provide better risk-adjusted returns. SBI funds typically have safer risk profiles. There are strong positive links between the SBI and HDFC funds in most categories, showing similar performance trends. However, flexi cap and equity hybrid funds do not show any significant links. The liquid and arbitrage funds from both companies were almost the same. The fund manager’s skill, shown by Jensen's alpha, varies but is generally positive for both companies, meaning that they can often beat benchmarks. These findings highlight the need to consider returns, risk, time, and investment goals when selecting mutual funds. While HDFC funds have advantages in many areas, SBI funds are still competitive, especially for cautious investors. This study provides useful insights for investors and financial advisors to compare SBI and HDFC mutual fund options.