• Manjunath B R
• Dr. J K Raju

Mutual Funds are subjected to market risk, and the fund schemes vary from one scheme to another, and hence the evaluation of the performance of mutual funds has turned out to be very much essential. This research deals with the Indian and Australian selected mutual fund schemes that are offered by the different management companies both in India and Australia for the period April 2008 to March 2018. The study investigated the causal relationship between the returns of customized Indian mutual fund (MIMF) in the Indian context and customized Australian mutual fund (MAMF) in the Australian context. Johansen cointegration test showed that there is one cointegrating vector as shown by Trace test and Max. Eigen statistics. MIMF and MAMF are co-integrated, and hence, a long-run equilibrium relationship exists between them. The model efficacy is checked using a normal distribution test, serial correlation test, and Heteroskedasticity ARCH effect. Hence, this study has a normal distribution, no serial correlation, and no Heteroskedasticity effects. The empirical evidence suggests that MAMF does not Granger-caused by MIMF, and thus the value of MIMF cannot be used to predict the future level of MAMF returns and vice-versa. Similarly, the empirical evidence suggests that MIMF does not Granger-caused by MAMF, and thus the value of MAMF cannot be used to predict the future level of MIMF returns and vice-versa.

Granger Causality, Heteroskedasticity, Johansen cointegration, Mutual Funds, Unit root test, VECM

"A Study on the performance evaluation of customized Indian Mutual Fund (MIMF) and customized Australian Mutual Fund (MAMF)", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 2, page no.672-686, February-2019, Available :http://www.jetir.org/papers/JETIR1902A97.pdf

"A Study on the performance evaluation of customized Indian Mutual Fund (MIMF) and customized Australian Mutual Fund (MAMF)", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 2, page no. pp672-686, February-2019, Available at : http://www.jetir.org/papers/JETIR1902A97.pdf