Stock Selection Ability of Indian Mutual Fund Managers Under Conditional Models

The Mutual Funds provides alternative opportunities to investors with benefits of diversification and professional research back up. Once the objectives of investment and associated constraints have been identified, the Fund Managers could select an efficient portfolio. The Fund Managers normally identify the appropriate stock selection and develop a suitable fund management style. The ability of Fund Managers depends on the final performance of the funds. However, factors like nature of portfolio, classes of assets, and portfolio switching also determine the performance of Mutual Funds. Hence the present study proposes to examine the stock selection abilities of Fund Managers by using six variables. The study found that few sample Schemes' Managers performed with correct stock selection skills under conditional Treynor and Mazuy (TM) Model and Conditional Hendrickson and Merton (HM) Model used in the study