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

The paper aims to examine the impact of statistical risk measures on the investment decisions of a fund manager responsible for managing investments in mutual funds schemes. This has been done using a case-study approach wherein performance and fundamentals of select mutual fund schemes run by Nippon India Mutual Fund (Reliance Mutual Funds) were analysed to find the linkage. To facilitate the study, the paper uses intra-firm comparison wherein it compares different fund schemes each catering to a different purpose and a different class of investors. Further to support inferences, the paper uses past data and factors in past decisions of fund managers of various schemes run by Reliance Mutual Funds.