Market timing ability of fund managers: Indian experience

Abstract

This paper analyzes the market timing ability and stock selection skills of Indian mutual fund managers for the period 2001-12 using Treynor and Mazuy Model (1966). In order to achieve this objective, a sample of 68 open-ended equity diversified mutual fund schemes have been selected. Hie study reveals that, Indian mutual fund managers are not good at timing the market whereas, they possess excellent stock selection skills for choosing the portfolio. They are not able to outperform the market using their skill of timing ability.