Author(s): Amit Bathia, Prerna Pawar, Jagabandhu Padhy, Mukund Madhav Tripathi, Nandip Vaidya and Kushagra Goel
In order to ascertain which asset pricing model best suits the risk and return structure of Indian open-ended equities mutual funds, the study evaluates three alternative models: CAPM, APT, and Fama-French. Utilizing a five-year dataset spanning from March 2018 to March 2023, the study looks at the performance of 20 Indian funds. Principal Component Analysis and regression analysis are used to assess the models' explanatory power. For data processing and visualization, the study makes use of Jamovi statistical software and Microsoft Excel. The research findings have the potential to improve the investing and risk-return decision-making of Indian mutual fund managers by providing them with a better understanding of the drivers of risk and return.