Synergizing Fuzzy AHP and MAUT for Integrated Evaluation of PSU Stocks and Mutual Fund Schemes

Abstract

Purpose: The paper deals with the financial performance of public sector firms and mutual fund schemes using fuzzy Analytic Hierarchy Process (AHP) for PSU stocks in the BSE PSU Index and fuzzy Multi-Attribute Utility Theory (MAUT) for PSU mutual fund schemes with Assets under Management (AUM) of 1,000 crores and above. Methodology: We have used fuzzy AHP to analyze the performance of selected PSU stocks on key performance indicators such as EPS, P/E ratio, and Return on Equity. Fuzzy MAUT is used to evaluate the performance of eligible mutual funds over five years. Findings: High profitability is evident at BEML Ltd whereas ITI yields negative EPS and ROE. ICICI Prudential exhibits strong performance with positive Sharpe as well as Treynor ratios, whereas the Sharpe ratio of most of the other funds is negative. The PSU stock returns along with their corresponding mutual fund returns highlight the significance of performance measures in investing. Originality: The paper combines ideas from fuzzy logic with traditional financial analysis to create a more balanced approach to evaluating PSU stocks and mutual fund investments.