A Review of Mutual Fund Performance in India: Evidence, Trends and Research Gaps

The research paper critically analyses the literature on the performance of Indian mutual funds. It aims to better understand changing patterns in mutual fund performance evaluation and to recommend opportunities for further research. The study examines published research articles, academic studies, regulatory reports, and mutual fund industry data. It looks at both classic and new ways for analysing mutual fund performance. This research relies on secondary sources and does not include an original statistical analysis of mutual fund NAV data. Previous studies have focused mostly on mutual fund industry growth and performance indicators such as the Sharpe ratio, Treynor ratio, and Jensen's alpha. Recent research has focused on benchmark comparisons, investment fees, return consistency, active versus passive fund management, and the influence of shifting market conditions. According to the SPIVA India year-end 2025 report, many actively managed mutual funds failed to outperform their benchmark indexes over ten years, with performance varying across shorter duration. The study suggests future research should focus on return consistency, investment costs, market conditions, downside risk, and comparisons between active and passive funds. This review can assist researchers and investors in gaining a better understanding of mutual fund performance.