An International Refereed Management Journal of FMS, Gurukul Kangri (Deemed to be University), Haridwar
Pranav Mishra, Neeta Ghangrekar, Sangeeta Jauhari
In the contemporary world technologies like Artificial Intelligence & Machine Learning are touching every aspect of the human life, and the mutual fund industry is not an exception. From a layman's perspective, it appears that a machine would always generate better results than a human. This paper is aimed at determining how far this presumption is true for the mutual fund schemes in the Indian context. For this,the performance of the quant fund is contrasted against a few traditional funds from the same fund house in terms of returns, risks, and vital ratios. A total of six funds were considered for the study. Lastly, an attempt is made to test the hypothesis to ascertain whether machine-driven portfolio management is better than traditional portfolio management using the one-way ANOVA as the data set proved to be normally distributed when tested using the Shapiro-Wilk test. Our results show that so far as Nippon India Mutual Fund is concerned its quant fund has failed to impress the industry through various performance parameters which raises a significant question-do we really need those quant funds?The monthly returns generated by the quant fund was found to be 20.33% below than that generated by the traditional funds under study. Even the risk expo sure of the quant fund is akin to the traditional funds compared.The outcome of this work is expected to add value both to the academic literature as well as to the professionals from the mutual fund industry.