A Study On Risk and Return Analysis of Mutual Funds Mid-Cap and Small-Cap On BSE

Abstract

This study evaluates the return performance and risk characteristics of selected companies suitable for mutual-fund and equity investment analysis over the period 2021–22 to 2025–26. Using a balanced dataset of 1,239 daily observations for each company, the study examines closing-price trends, open-to-close returns, intraday volatility, half-year performance, return-risk measures and relationships among selected securities. The findings show substantial differences in long-term price appreciation, with TVS Motor recording the highest increase of 471.3%, followed by Federal Bank at 228.9% and Torrent Power at 205.4%, while Canara Bank and Astral Ltd. recorded declines over the study period. Although all companies experienced periodic negative half-year performance, no company achieved positive average intraday returns, and all return-risk ratios were negative. The Kruskal-Wallis test indicated no significant difference in half-year average intraday returns, whereas the Brown-Forsythe test revealed significant differences in volatility across companies. The results suggest that volatility and downside risk differentiate securities more clearly than average intraday returns. The study concludes that investors should consider return trends together with volatility, diversification, position sizing, fundamental factors and risk tolerance when making investment decisions.