Journal Press India^®

Author Details ( * ) denotes Corresponding author

Purpose: The present study has been undertaken with the object of examining the market timing abilities of Indian fund managers to reward higher return to the investors. Design/Methodology/Approach: For the purpose of the study, schemes have been taken from 1994-95 to 2001-2002. A total of 31 schemes over the seven-year period are selected. The following fund from UTI, LIC, Can Bank, IND Bank, PNB Bank, SBI, BOI Bank mutual fund has taken for study. The risk is calculated on the basis of month end Net Asset values. Further BSE national index assessed as market index or benchmark. The returns are computed on the basis of the Net Asset Values and the NAVs are adjusted assuming dividends are reinvested at the ex-dividend NAV Findings: The results indicated here do not lend support to the hypothesis that Indian fund managers are able to time the market correctly. There is only one scheme where market timing ability of the fund managers was exhibited Research Limitations The major limitation of the study is no hedging instruments available for them to hedge the market uncertainties. Managerial Implications The implications of the research will be helpful in the developed capital market. Originality/Value This study showcased the original work of the authors in the field of market analysis.

Keywords

NAV, Mutual funds, Market Analysis, Up Market, Down Market

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