Market Timing and Stock Selection Ability of Fund Managers in India: An analysis of Selected Equity Diversified Mutual Funds

Abstract

This study analyses the stock selection and market timing ability of the 52 selected Indian equity diversified mutual fund (growth) schemes for the period from 1^st April 2009 to 31^st March 2019 using Jensen, Treynor-Mazuy and Henriksson-Merton Model.  The study has focused only on actively managed equity diversified schemes for which the stock selection ability and market timing ability is relevant. As far as the stock selection ability is concerned study provides ample evidence of good performance. However there is little evidence of fund managers exhibiting market timing skills.