This study examines the performance of equity mutual funds in relation to their benchmark indices, highlighting variations in fund efficiency and management effectiveness. The analysis employs risk-adjusted performance measures, including the Sharpe Ratio, Jensen’s Alpha, and Treynor’s Ratio, to evaluate returns relative to risk. The findings reveal a diverse performance landscape, where some funds demonstrate superior risk-adjusted returns and effective portfolio management, while others exhibit significant underperformance, indicating potential shortcomings in investment strategies and managerial decision-making. The results emphasize the importance of incorporating risk, volatility and managerial skill into mutual fund evaluation. Overall, the study provides valuable insights for investors seeking to optimize portfolio selection and make informed investment decisions within the equity mutual fund segment.