Mutual funds in India help spread out investors' money across different types of investments to reduce risk. A study looked at selected mutual fund schemes from 2008 to 2012 compared to Sensex returns. The managers' efficiency in stock selection was analyzed using Alpha, Beta, and RSQ. The study found that the return variability of the mutual fund schemes ranged from moderate to high, suggesting they may not be as stable as believed. The fund managers were not very efficient in selecting stocks for all the funds. Investors should carefully consider their options before investing in mutual funds.