The economic reforms initiated by the Indian government over the last two decades have resulted in growth in the Indian financial service sector. Investors are offered various investment avenues. But there are investment avenues with growing risk. Mutual funds one of the investment avenues offers investors wide opportunities in diversifying their risk. There is tremendous growth and development in the mutual fund industry. Mutual funds have emerged as the best in terms of variety, flexibility, diversification, liquidity as well as tax benefits. Besides, through mutual funds, investors can gain access to investment opportunities that would otherwise be unavailable to them due to limited knowledge and resources. Moreover, due to its development, the mutual fund serves as a channel for pooling the savings of a large number of people across the country and investing in funds. Diversification of funds helps in reducing risk. Investors are faced with a common problem in selecting funds according to their investment objective. This study concentrates on the performance evaluation of the sectorial equity mutual funds during the period from 2014 to 2018. For this purpose 20 schemes have been selected in 5 different sectors (each sector 4 funds). The investment performance has been analyzed with tools like standard deviation, beta, Sharpe, and Treynor ratios. The main aim of this study is to analyze the risk in the performance of the sectorial equity mutual funds. Past performance of mutual funds explains how the fund has performed in the past and accordingly one can expect positive or negative performance in the future as well. The results indicate that overall all the selected sectorial equity mutual fund schemes have succeeded in providing a fair rate of return to the investors. Using performance parameters like Sharpe and Treynor ratio. Banking sector funds have recorded higher performance associated with high risk and high returns when compared to other sectors. However, there is some substantiation that the two schemes aren’t performing below the market.