Investors are able to combine their funds into a single investment vehicle by making use of mutual funds. This vehicle may then be used to acquire securities such as government bonds, corporate bonds, short-term money market instruments, other securities, or a combination of the assets listed above. Since the beginning of their existence, mutual funds have maintained their position as the investment choice that first-time investors pick the most often out of all the available options. The purpose of this research is to assess the efficiency of mutual funds and to investigate the roles that benefit management companies play in both the public and private spheres. The primary objective of this inquiry is to analyse the economic performance of a variety of different mutual fund schemes by using factual criteria such as beta, standard deviation, Treynor's measure, and the Sharpe ratio. The findings of the study will prove to be beneficial in assisting investors in making judgements on their subsequent investments. The mutual funds that are sponsored by public sector banks beat those that are sponsored by UTI banks and the private sector. This is due to the public sector banks' higher returns, all-positive and diversified schemes, and efficient portfolio management. This is the case due to the fact that both mutual funds sponsored by the private sector and UTI banks derive their investments from the banking industry. Since the beginning of their existence, mutual funds have been widely regarded as the best investment opportunity for individual investors. It's possible that the high investor return and little risk are the primary motivating factors for doing this. Small investors are given the option to participate in the market for securities, which enables them to expand their enterprises while also reducing the risk involved. This article makes it quite clear that one must do extensive study before investing in any mutual funds. Because investing in mutual funds is becoming an increasingly common activity, it is essential to have a solid understanding of the potential downsides as well as the potential for significant upsides. This article intends to raise awareness about the mutual fund industry in India and makes an attempt to do so throughout.