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@article{207905,
        author = {Vilas Rahangdale and Prof. Snehal Bodele},
        title = {Investment Efficiency in India: Mutual Funds vs Direct Equity Analysis},
        journal = {International Journal of Innovative Research in Technology},
        year = {2026},
        volume = {13},
        number = {3},
        pages = {3251-3261},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=207905},
        abstract = {The present study investigates and evaluates the comparative effectiveness of mutual funds and direct equity investments within India’s financial investment landscape. With increasing participation from retail investors, choosing the right investment option has become increasingly challenging. This study focuses on evaluating which investment avenue delivers better outcomes after considering important factors such as risk, cost, and investor behaviour. 
Methodology: This research adopts a combined descriptive–analytical approach and is primarily supported by secondary information obtained from credible financial sources over a defined time period. Selected equity mutual funds are evaluated alongside benchmark indices that represent direct equity performance. Investment performance is assessed using key financial indicators such as CAGR, the Sharpe Ratio, and measures of return volatility. In addition, cost-related factors including expense ratios, transaction charges, and taxation (LTCG and STCG) are incorporated to understand actual returns. 
Key Findings: The results indicate that direct equity investments can generate relatively greater return potential during favorable economic and investment phases; however, a significant portion of these gains may be reduced due to higher costs, taxation, and inconsistent investor decisions. In contrast, mutual funds demonstrate greater stability and provide improved risk-adjusted returns, mainly due to diversification and professional management.  Practical and Theoretical Implications: This study offers a practical perspective for evaluating investment choices beyond just return comparison and helps investors make more informed decisions. It also adds value to existing research by presenting a more realistic comparison between equity-oriented mutual funds and individual equity investments within the contemporary Indian investment ecosystem.},
        keywords = {Equity mutual fund investments, Direct equity investing, Indian financial ecosystem, Investment returns, CAGR, Sharpe ratio, Cost efficiency, Taxation (LTCG/STCG), Portfolio diversification, Retail investors},
        month = {August},
        }