Authors: Uppunuti Sai Charan, Associate Professor Dr. M.P. Suri Ganesh
Abstract: Mutual funds have emerged as one of the most preferred investment avenues for individual and institutional investors, offering diversification benefits, professional management, and relatively lower risk compared to direct equity investments. This study analyzes the mutual fund portfolio and associated risks with special reference to HDFC Bank — one of India's leading private sector banks and a major distributor of mutual fund products. Using secondary data spanning FY 2021–22 to FY 2025–26, the study evaluates four representative HDFC mutual fund schemes — Large Cap, Mid Cap, Focused, and Dynamic Debt — through key financial metrics including average annual return, Compound Annual Growth Rate (CAGR), standard deviation, beta, Sharpe ratio, and coefficient of variation. The findings reveal that equity-oriented schemes, particularly HDFC Mid Cap Fund and HDFC Focused Fund, significantly outperformed the benchmark index over the study period, though with higher volatility. HDFC Dynamic Debt Fund demonstrated stability and defensive characteristics suitable for conservative investors. The study concludes that a diversified portfolio approach combining growth and stability-oriented schemes offers the most balanced risk-return outcome for investors.
