How Do Statistical Risk Measures Influence Investment Decisions of a Fund Manager in the Mutual Funds Industry? A Case Study on Reliance Mutual Funds

Abstract

Thepaperaimstoexaminetheimpact ofstatisticalriskmeasureson the investmentdecisions of a fund manager responsible for managing investments in mutual fundsschemes.Thishasbeendoneusingacase-studyapproachwhereinperformanceandfundamentals of select mutual fund schemes run by Nippon India Mutual Fund (Reliance MutualFunds) were analysed to find the linkage. To facilitate the study, the paper uses intra-firmcomparison wherein it compares different fund schemes each catering to a different purpose anda different class of investors. Further to support inferences, the paper uses past data and factors in past decisions of fund managers of various schemesrun by Reliance Mutual Funds.