Abstract

The stock selection is considered to be the core of the investment process This involves identifying and selecting undervalued securities which are expected yield good results in the future In practice fund managers are expected to earn superior returns for unit holders consistently as being professionals therefore possession of superior skills to collect and analyze the data with the purpose to select the right type of securities for the portfolio is a must for them The present work is based on the review of many studies both foreign and Indian studies relating to mutual funds The mutual fund industry in India consists of public sector private sector and foreign funds All the three sectors are studied to analyse the selectivity performance on the basis of sponsorship of funds However from these only active funds belongings to Growth Income Balanced and Tax-Saving Schemes were selected for the study In this paper stock selectivity skills of sample fund managers were tested using Jensen s Alpha and Fama s net selectivity measures models