A Study on the Performance Evaluation of Selected Index Mutual Funds in India: An Empirical Analysis Under the SEBI Regulations, 2026 and AMFI Industry Landscape

Abstract

This study evaluates the risk-adjusted performance of five major Nifty 50 index mutual fund schemes in India: ICICI Prudential Nifty Index Fund (G), SBI Nifty Index Fund-REG (G), TATA Nifty Index Fund-REG (G), LIC MF Nifty Index Fund (G), and IDBI Nifty Index Fund (G). Utilizing monthly Net Asset Value (NAV) data over a four-year analytical horizon, statistical parameters including Average Return, Standard Deviation, Variance, Covariance, Correlation, and Beta were calculated alongside classic modern portfolio performance metrics—specifically the Sharpe Ratio and Treynor Ratio. The empirical findings reveal near-perfect correlation (r≥0.997) across schemes relative to the benchmark index, reflecting passive tracking fidelity. TATA Nifty Index Fund demonstrated superior risk-adjusted execution across Sharpe (0.0038) and Treynor (0.0044) metrics due to tighter total risk management. These empirical results are contextualized against SEBI's regulatory reforms—including the SEBI (Mutual Funds) Regulations, 2026, the MF Lite framework for passive schemes, and unbundled Base Expense Ratio (BER) caps—providing strategic insights for retail investors, fund managers, and asset management companies (AMCs).