Vol. 1, Issue 1, Part A (2019)

Mutual funds serve as financial intermediaries that pool resources from investors and allocate them across a variety of securities. Profits are shared among investors after deducting associated costs. SBI Mutual Fund, launched in 1987 and headquartered in Mumbai, is a joint venture between the State Bank of India and Amundi Asset Management. This study aims to assess the stock selection capabilities and market timing proficiency of various SBI mutual fund schemes. The results show that while all the selected schemes display strong stock selection abilities (positive alpha values), none demonstrate effective market timing skills (negative gamma values).