A MUTUAL FUND INDEX APPROACH TO TESTING MARKET EFFICIENCY: A CASE OF NIFTY INDEX

Over the past two decades mutual funds have emerged as one of the key participant<br>in Indian equity markets. Apart from attracting retail investors and supplying liquidity in the<br>markets, mutual funds have also provided illustrations for theoretical experiments. One such<br>theoretical experiment is testing of capital market efficiency using mutual fund portfolio<br>performance. Market efficiency as a concept proposed by Eugene Fama in 1970 and went<br>onto prove to be one of the pivotal contribution in asset pricing model developments, proven<br>rightfully with earning a Nobel award to Fama.