A STUDY ON RELATIONSHIP BETWEEN RISK AND RETURN OF THE SELECTED MUTUAL FUND SCHEMES

An average investor can consider investing surplus funds in capital market instruments, which may provide returns in the form of dividends, interest, or capital gains. Among the various investment avenues, mutual funds are considered one of the best avenues for investment. Before investing, an investor should assess whether the investment avenue can provide returns that justify the level of risk involved. A common and average investors are often not capable of calculating the relationship between risk and return. Therefore, this paper analyzes how much return each mutual fund scheme is generating per unit of risk associated with it. The primary objective of this paper is to examine the return generated per unit of risk for the selected mutual fund schemes. The risk-adjusted performance of the selected schemes was evaluated using the Sharpe Ratio and Treynor Ratio.