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Measuring Performance Efficiency of Direct Vs Regular Plans of Mutual Funds in India: A DEA Approach


Dr. Charmi Shah, M. Aadalarasu, Priya Saraiwala, Abhilasha Mansata and Dr. Siddharth Misra
Abstract

In the growing funds market, the research of performance evaluation of mutual funds plays a vital role in the field of financial engineering. This study has been made to measure the performance efficiency of mutual fund direct and regular plans using Data Envelopment Analysis (non-parametric approach). The performance evaluation of funds was measured by considering Sharpe ratio and Expense ratio as input variables and returns as output variables and this has been continued to fairly measure the performance efficiency over different time frames using the same decision-making units (DMUs). Variable returns to scale (VRS) as considered for evaluating the performance efficiency of the funds under both the plans. The research findings will be an eye-opener for the investors to choose the plan accordingly to get better returns. Further, the findings depict that the efficiency score is related to the input variables while considering the same funds under both plans over different time frames.

Volume 11 | 04-Special Issue

Pages: 177-189