A Comparative Analysis of Public and Private Mutual Funds: A Study of SBI Mutual Funds and Aditya Birla Sun Life Mutual Funds

Abstract

Performance appraisal of mutual funds operating in the public sector and private sector provides critical insight into how ownership structure, management style, and strategic objectives influence investment outcomes. This paper compares SBI Mutual Fund, which represents the public sector, with Aditya Birla Sun Life Mutual Fund (ABSLMF), which represents the private sector. The key performance indicators that form part of the analysis include risk-adjusted returns, namely Sharpe Ratio, Treynor Ratio, and Jensen’s Alpha, besides studying the growth in NAV, fund volatility, and consistency of returns over a defined period. Results indicate that Aditya Birla Sun Life Mutual Fund schemes usually tend to exhibit higher risk-return dynamics on account of the more aggressive portfolio strategies characteristic of private-sector asset management, while SBI Mutual Fund schemes have typically pursued stability, long-term value creation, and lower risk exposure in line with conservative public-sector investment practices. The comparative analysis draws attention to differences in risk- adjusted return generation efficiency, responsiveness of fund management to market swings, and diversification patterns. The study concludes that an investor’s choice between mutual funds in the public and private sectors should be guided by their investment horizon, return expectations, and risk tolerance. It also draws on the importance of monitoring performance with changes in the market.