The Efficiency of Shriram Mutual Funds: A Risk-Adjusted Return Perspective

Abstract: This study looks at how Shriram Mutual Fund schemes performed on a risk-adjusted basis between 2020 and 2025, comparing them with their benchmark indices. Using annual returns, volatility, and Sharpe Ratios based on the 364-day T-bill rate, the analysis covers 16 plans across Aggressive Hybrid, Balanced Advantage, ELSS, and Flexi Cap categories. Overall, Direct plans delivered better results than Regular plans, with Flexi Cap and ELSS Direct schemes standing out. Hybrid funds—especially Aggressive Hybrid—showed weaker performance and did not compensate well for the risks taken. The findings underline that Direct equity-oriented plans tend to offer better efficiency and that metrics like the Sharpe Ratio are essential for evaluating mutual fund choices in India.

Keywords: Mutual Fund Performance, Risk-Adjusted Returns, Sharpe Ratio, Benchmark Comparison, Direct vs Regular Plans, Portfolio Optimization, Quantitative Analysis, Shriram Mutual Fund, Financial Metrics, Investment Decision- Making