A Multi-Metric Performance Evaluation of Indian Mutual Funds: Evidence from Arbitrage, Hybrid, and Balanced Advantage Schemes

Abstract: This paper examines the performance of 20 mutual fund schemes from 2020 to 2025 across Arb, Agg Hybrid, and Blc Adv categories using key risk-adjusted measures such as the Sharpe Ratio, Treynor Ratio, and Jensen’s Alpha. The analysis shows that most funds failed to beat their benchmarks, with only a few displaying positive Sharpe Ratios and all reporting negative alpha. Among the categories, Blc Adv funds offered relatively better risk-adjusted results, while AFs delivered the weakest performance. Overall, the study highlights the difficulty active fund managers faced during a strong market phase and suggests that low-cost passive options and DPs may be more suitable for many investors.

Keywords: Mutual Fund Performance, Sharpe Ratio, Treynor Ratio, Jensen's Alpha, Risk-Adjusted Returns, Benchmark Comparison, Underperformance, Active Management, Passive Investment, Portfolio Strategy, Financial Benchmarking, Investment Analysis, Fund Selection, Market Returns, Risk Management.