Journal Press India^®

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This study employs Data Envelopment Analysis (DEA) to assess the relative efficiency of 30 Indian equity mutual funds in the Large-Cap and Equity Linked Savings Scheme (ELSS) categories over the period 2018–2023. Efficiency is measured using four input variables-standard deviation, portfolio turnover ratio, beta (systematic risk), and expense ratio and one output variable, the Sharpe Ratio, representing risk-adjusted performance. The analysis identifies the most efficient funds within each category and provides directional benchmarks for improving underperforming funds. Findings reveal that ELSS funds exhibit a higher incidence of relative efficiency compared to Large-Cap funds. Specifically, efficiency improvements in Large-Cap funds require a significant reduction in portfolio turnover, whereas ELSS funds would benefit most from lower return volatility. These insights offer practical implications for investors, fund managers, and asset management firms seeking to optimize mutual fund performance in the Indian context.

Keywords

Mutual funds; Portfolio turnover; Expense ratio; DEA; ELSS

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