Effect of Market Sentiments Over the Growth of Mutual Fund Schemes and Asset under Management: An Insight into Indian Mutual Industry

The study shows the performance of Indian Mutual Fund Schemes in terms of number of Mutual Fund houses in India, Number of Mutual Fund Schemes category wise and portfolio wise and the Asset Under management of the Mutual Fund Schemes over the years. The effect of Market Sentiments over the change in the number of schemes have been studied. Also it is observed that there is a change in the Asset Under Management during Bullish and Bearish phase. The time period selected for the study is from 2002 till 2019. The data for this purpose is collected from AMFI for the years 2002 to 2019. Portfolio wise Mutual Funds schemes are categorized into Income, growth, balanced, liquid, gilt, ELSS and ETFs. Category wise the schemes are divided into open ended schemes, close ended schemes, Assured return and Interval schemes. The performance is studied category wise since there are times when some schemes are performing good and others are underperforming and vice versa. This is due to the effect of market sentiments. It is analyzed from the study that there is an increase in the number of Mutual fund houses and schemes in India over the period. It is also found that there is an improvement in the performance of the Mutual fund schemes over the years. The effect of market sentiments is also seen on the performance of schemes. The tools applied for the purpose of this research is percentage method to calculate annual growth and CAGR to calculate overall growth over the years.