A STUDY ON ACTIVE AND PASSIVE MUTUAL FUND AND THEIR IMPLICATION FOR RETAIL INVESTORS AT RICCHIE RICH INVESTMENTS
A STUDY ON ACTIVE AND PASSIVE MUTUAL FUND AND THEIR IMPLICATION FOR RETAIL INVESTORS AT RICCHIE RICH INVESTMENTS
Authors:
Ms. R. Beena Jemima1, Dr. S. Satheesh Kumar2 1Student, Department of MBA, Panimalar Engineering College,
Chennai – 600123
2Assistant Professor, Department of MBA, Panimalar Engineering College, Chennai – 600123
ABSTRACT
This study analyses the performance of active and passive mutual funds and their implications for retail investors over the period from January 2021 to March 2026. The primary objective is to compare return patterns, risk-return profile, cost structure, and long-term performance of selected large-cap mutual funds. The research adopts a descriptive and analytical approach using secondary data collected from mutual fund reports, financial websites, and published sources. A sample of 15 mutual funds, including 10 active funds and 5 passive (index) funds, is selected for evaluation. Key financial indicators such as CAGR, NAV, Standard Deviation, Beta, Sharpe Ratio, Treynor Ratio, Sortino Ratio, Jensen’s Alpha, Expense Ratio, Tracking Error, and Information Ratio are used to assess performance. The findings indicate that active funds have the potential to generate higher returns during certain periods but lack consistency across all time frames. In contrast, passive funds demonstrate greater stability, lower costs, and returns aligned with benchmark indices. The study also highlights that expense ratios significantly affect net returns and that risk-adjusted measures provide a more accurate evaluation of performance. It concludes that a balanced investment approach combining both active and passive strategies can help retail investors achieve long-term financial goals while effectively managing risk and cost.
KEYWORDS: Active Mutual Funds, Passive Mutual Fund, Risk-Return Analysis, Expense Ratio, Volatility, Retail Investor