APROJECTREPORTONTHETOPIC

“A COMPARATIVE ANALYSIS OF MUTUAL FUNDS SCHEMES”

A PROJECT SUBMITTED TO UNIVERSITY OF MUMBAI FOR
PARTIAL
COMPLETION OF THE DEGREE OF
B.COM (ACCOUNTS AND FINANCE)

UNDER THE FACULTY OF COMMERCE

By: Kiran Anil Gupta

UNDER THE GUIDANCE OF

PROF. NILANJANA MAZUMDAR

SAINATH EDUCATION TRUSTS

RAJIV GANDHI COLLEGE OFARTS, SCIENCE AND COMMERCE,
16/17, JUHU NAGAR ROAD, JUHU NAGAR, SECTOR IOA, VASHI, NAVI
MUMBAI, MAHARASHTRA- 400703.

YEAR: 2023-2024

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 CERTIFICATE

This is to clarify that “KIRAN ANIL GUPTA” has worked and duly completed her
project work for the degree of Bachelor of commerce (Accounts and Finance) under the
faculty of commerce in the subject of “ ACOMPARATIVEANALYSIS OF MUTUAL
FUNDS SCHEMES” under my supervision.

I further certify that the entire work has been done by the learner under my guidance
and that no part of it has been submitted previously for any Degree or Diploma of any
university.

It is her own work and facts reported by her personal findings and investigations.

Project Guide. Course coordinator. Principal.

INTERNAL EXAMINER EXTERNAL EXAMINER

DATE OF SUBMISSION: / 2023

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 DECLARATION BY LEARNER

I the undersigned “Kiran Anil Gupta” here by, declare that the work embodied in this

project work titled “A COMPARATIVE ANALYSIS OF MUTUAL FUNDS SCHEMES”

forms from my own contribution of the research work carried out under the the
guidance of ASS.PROF. NILANJANA MAZUMDAR is a result of my own research
work and has not been previously submitted to any other university for any other
Degree/Diploma to this or any other university.

Wherever reference has been made to the previous works of others, it has been clearly
indicated as such and included in the bibliography.

I, hereby further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

Name and Signature of learner

Mrs. Kiran Gupta

Signature of the Guiding Teacher.

ASS.PROF. NILANJANA MAZUMDAR

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 ACKNOWLEDGMENT
To list who all have helped me is difficult because they are so numerous and the debt is
so enormous.

I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do
this project.

I would like to thank my Principal, Dr Basu Kinath Pandey for providing the
necessary facilities required for the completion of this project.

I take this opportunity to thank our project guide and Coordinator Prof.
NILANJANA MAZUMDAR for her moral support and guidance.

I would like to thank my College Library, for having provided various reference books
and magazines related to my project.

Lastly, I would like to thank each and every person who directly and indirectly helped
me in the completion of the project especially my Parents and Peers who supported
me throughout my project.

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 INDEX
CHAPTER TOPIC PAGE
NO. NO
1)… Chapter ( Industry summary)
Introduction
1.1
1.2 First Phase - 1964-1987
1.3 Second Phase - 1987-1993
1.4 Third Phase - 1993-2003
1.5 Fourth Phase - Since February 2003
1.6 Parties Involved In Mutual Funds

2)… Chapter (THEORATICAL FRAME WORK )

Asset Management Company
2.1 Mutual Funds
2.2
Benefits Of Mutual Funds
2.3
2.4 Classification of Mutual Funds
2.5 Based on Investment Objectives or Asset Class
2.6 Important Key Words Related To Mutual Funds
3)… Chapter ( REVIEW OF LITERATURE)

4)… Chapter (RESEARCH METHEDOLOGY)

5)… Chapter (DATA ANALYSIS & INTERPRETATION)

6 Chapter (BIBLIOGRAPHY)
6.1
BOOK
6.2
JOURNALS
7 QUESTIONNAIRE

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 Chapter 1
INDUSTRY SUMMARY
1.1 Introduction
The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of
the Government of India and Reserve Bank of India. Mutual funds are often classified by their principal
investments: money market funds, bond or fixed income funds, stock or equity funds, or hybrid funds. Funds
may also be categorized as index funds, which are passively managed funds that track the performance of an
index, such as a stock market index or bond market index, or actively managed funds, which seek to outperform
stock market indices but generally charge higher fees. Primary structures of mutual funds are open-end funds,
closedend funds, unit investment trusts.The history of mutual funds in India can be broadly divided into four
distinct phases

1.2 First Phase - 1964-1987

Unit Trust of India (UTI) was established in 1963 by an Act of Parliament. It was set up by the Reserve Bank of
India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978
UTI was DE-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the
regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme
1964. At the end of 1988 UTI had Rs. 6,700 crore of assets under management.

1.3 Second Phase - 1987-1993 (Entry of Public Sector Funds)

1987 marked the entry of non-UTI, public sector mutual funds set up by public sector banks and Life Insurance
Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBI Mutual Fund was the first
non-UTI Mutual Fund established in June 1987 followed by Can bank Mutual Fund (Dec 87), Punjab National
Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda
Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in
December 1990.
At the end of 1993, the mutual fund industry had assets under management of Rs. 47,004 crore.

1.4 Third Phase - 1993-2003 (Entry of Private Sector Funds)

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With the entry of private sector funds in 1993, a new era started in the Indian mutual fund industry, giving the
Indian investors a wider choice of fund families. Also, 1993 was the year in which the first Mutual Fund
Regulations came into being, under which all mutual funds, except UTI were to be registered and governed. The
erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund
registered in July 1993. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive
and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund)
Regulations 1996.
The number of mutual fund houses went on increasing, with many foreign mutual funds setting up funds in
India and also the industry has witnessed several mergers and acquisitions. At the end of January 2003, there
were 33 mutual funds with total assets of Rs. 1, 21,805 crore. The Unit Trust of India with Rs. 44,541 crore of
assets under management was way ahead of other mutual funds.

1.5 Fourth Phase - Since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate
entities. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs.
29,835 crore as at the end of January 2003, representing broadly, the assets of US 64 scheme, assured return and
certain other schemes. The Specified Undertaking of Unit Trust of India, functioning under an administrator and
under the rules framed by Government of India and does not come under the purview of the Mutual Fund
Regulations.
The second is the UTI Mutual Fund, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI
and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI which had in
March 2000 more than Rs. 76,000 crore of assets under management and with the setting up of a UTI Mutual
Fund, conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking place among different
private sector funds, the mutual fund industry has entered its current phase of consolidation and growth.

1.6 Parties Involved In Mutual Funds

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 It is the governing authority of stock market. Mutual funds legal framework is
regulated by SEBI’s guidelines

SEBI

Investors Investor is another speculator (who takes on high risks for high rewards) but
one whose primary objective are to safeguard the principle investment, a
steady income and capital appreciation.

Trustees The mutual fund has been formed as a public trust and trustees manage the
trust. They are primarily accountable for protecting the interest of mutual
fund investors

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Asset Management SEBI approved asset management company manage the fund by making
Company investment in various types of securities. It manages the investment
portfolios o the schemes and handles various other routine activities
incidental to the mutual fund business. Its income comes from the
management fees it charges for schemes it manages.

Distributors They earn commission for bringing in investors into the schemes of mutual fund.
This commission is an expense for the schemes

Registers An investor holding in mutual fund schemes is typically followed by the

schemes RTA (Registrar and transfer Agent). Some AMC‟s prefer to handle it
in house.

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Custodian/ As the name suggests, a custodian of the securities preserves the custody of the
securities in which the scheme invests. Therefore, for an investment transaction
Depository
of mutual fund, custodian receives or gives delivery

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 Chapter 2 THEORATICAL FRAMEWORK
2.1 Asset Management Company

There are 44 asset management companies (AMCs) or mutual fund houses operating in India. These companies
manage the investments of investors to fetch them optimal returns. Below we have provided a list of mutual
fund houses in India.

1) Axis Asset Management Company Ltd.

2) Aditya Birla Sun Life AMC Limited

3) Baroda Asset Management India Limited

4) BNP Paribas Asset Management India Private Limited

5) BOI AXA Investment Managers Private Limited

6) Canara Robeco Asset Management Company Limited

7) DHFL Pramerica Asset Managers Private Limited

8) DSP Investment Managers Private Limited

9) Edelweiss Asset Management Limited

10) Essel Finance AMC Limited

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11) Franklin Templeton Asset Management (India) Private Limited

12) HDFC Asset Management Company Limited

13) HSBC Asset Management (India) Private Ltd.

14) ICICI Prudential Asset Management Company Limited

15) IDBI Asset Management Ltd

16) IDFC Asset Management Company Limited

17) IIFCL Asset Management Co. Ltd.

18) IIFL Asset Management Ltd.

19) IL&FS Infra Asset Management Limited

20) India bulls Asset Management Company Ltd.

21) INVESCO Asset Management (India) Private Limited

22) ITI Asset Management Limited

23) JM Financial Asset Management Limited

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24) Kotak Mahindra Asset Management Company Limited (KMAMCL)

25) L&T Investment Management Limited

26) LIC Mutual Fund Asset Management Limited

27) Mahindra Asset Management Company Pvt. Ltd.

28) Mirae Asset Global Investments (India) Pvt. Ltd.

29) Motilal Oswald Asset Management Company Limited

30) PPFAS Asset Management Pvt. Ltd.

31) Principal Asset Management Pvt. Ltd.

32) Quant Money Managers Limited

33) Quantum Asset Management Company Private Limited

34) Reliance Nippon Life Asset Management Limited

35) Sahara Asset Management Company Private Limited

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 36) SBI Funds Management Private Limited

37) Shriram Asset Management Co. Ltd.

38) SREI Mutual Fund Asset Management Pvt. Ltd.

39) Sundaram Asset Management Company Limited

40) Tata Asset Management Limited

41) Taurus Asset Management Company Limited

42) Union Asset Management Company Private Limited

43) UTI Asset Management Company Ltd.

2.2 Mutual Funds

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A mutual fund is a type of professionally managed investment fund that pools money from many investors to
purchase securities such as stocks, bonds, money market instruments and other assets. Mutual funds are
operated by professional money managers, who allocate the fund's investments and attempt to produce Capital
gains and/or income for the fund's investors.

Some Key Features of a Mutual Fund are as Follows

 Professional Management

Each fund‟s investments are chosen and monitored by qualified professionals who use this money to create a
portfolio. That portfolio could consist of stocks, bonds, money market instruments or a combination of all of
these.

 Fund Ownership

An investor owns shares of mutual fund, not the individual secures. Mutual funds permit the investors to invest
small amounts of money. The pool can be used to buy even those securities which would have been out of reach
of a common individual investor. Thus investors in mutual funds benefit from being involved in a large pool of
cash invested by other people.

 Diversified Investment

Mutual funds have a diversified investment portfolio which helps in minimizing the risk as the fluctuation in
prices of the individual securities has less effect on the fund‟s performance.

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2.3 Benefits Of Mutual Funds

 Risk Diversification

Mutual funds help to diversify the risk associated with the securities, because overall risk of the particular
mutual fund is proportionately divided among all the unit holders of mutual fund.

 Operated by Professional Manager

Mutual funds are kept and operated by the professional managers who are professional in this particular field so
the unit holders enjoy the professional Operation on these mutual funds.

 Passive Investment Style

Mutual fund is a passive investment style in which the owners of the unit holders do not participate
directly but they keep these units passively. They don‟t need to participate directly they only have to purchase
the units and keep them in passive way.

2.4 Classification of Mutual Funds

Based on Maturity Period  Open-
Ended Funds:
An open ended fund is a fund that is available for subscription and can be redeemed on a continuous basis. It is
available for subscription throughout the year and investors can buy and sell units at NET ASSET VALUE
(NAV) related prices. These funds do not have a fixed maturity date.
The key feature of an open-ended fund is liquidity.

 Close-Ended Funds:
A close ended fund is a fund that has a defined maturity period, for example 5-7 Years. These funds are open for
subscription for a specified period at the time of initial launch. These funds are listed with a recognized stock
exchange.

 Exchange Traded Funds:

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Exchange traded funds combine the features of open-ended and close-ended funds. These funds may trade on
stock exchanges and are open for sale or redemption at predetermined intervals on the prevailing NET ASSET
VALUE (NAV).

 Unit Investment Trusts:15

UTIs are also issued to the public only once when they are created. They have a fixed maturity period and a
fixed portfolio of securities which is determined at the time of creation.
2.5 Based on Investment Objectives or Asset Class
 Equity/Growth Funds:
Equity funds invest minimum 65% of its corpus in equity and equity related securities. These funds may invest
in a wide range of industries or focus on one or more industry sectors. These types of funds are suitable for
investors with a longterm outlook and higher risk appetite.

Types of Equity Funds:

a) Large Cap Fund:

An open ended equity schemes predominantly investing in large cap stocks. The minimum investment in equity
and equity related instruments of large cap companies shall be 80 % of total asset.

b) Mid Cap Fund:

An open ended equity schemes predominantly investing in mid cap stocks. The minimum investment in equity
and equity related instruments of large cap companies shall be 65 % of total asset.

c) Small cap Fund:

An open ended equity schemes predominantly investing in small cap stocks. The minimum investment in equity
and equity related instruments of large cap companies shall be 65 % of total asset.

d) Multi Cap Fund:

An open ended equity scheme investing in across large cap, mid cap, small cap stocks. The minimum
investment in equity and equity related instruments of large cap companies shall be 65 % of total asset.

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e) ELSS (Equity linked saving schemes):

An open ended equity linked saving schemes with a statutory lock in of 3 years and tax benefit. The minimum
investment in equity and equity related instruments shall be 80 % of total asset.

Debt/Income Funds:
Debt/income funds generally invest in securities such as bonds, corporate debentures, government securities
and money market instruments. These funds invest minimum 65% of their corpus in fixed income securities. By
investing in debt instruments, these funds provide low risk and stable income to16 investors with preservation
of capital. These funds tend to be less volatile than equity funds and produce regular income.

Types of Debt fund: a)

Liquid Fund:
An open ended liquid scheme whose investment is into debt and money market securities with
maturity of up to 91 days only.

b) Ultra Short Duration Fund:

An open ended Ultra-Short term debt schemes investing in debt and money market instruments with Macaulay
duration between 3 months and 6 months.

c) Low duration fund:

An open ended low duration debt scheme investing in debt and money market instruments Macaulay duration
between 6 months and 12 months.

d) Short duration Fund:

An open ended short term debt scheme investing in debt and money market instruments having maturity up to 1
year.

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e) Medium to Large Duration Fund:

An open ended medium term debt scheme investing in debt and money market instruments with Macaulay
duration between 4 years and 7 years. Portfolio Macaulay duration greater than 7 years.

f) Money Market Fund:

An open ended debt scheme investing in money market instruments having maturity up to 1 year.

g) Corporate Bond Fund:

An open ended debt scheme predominantly investing in AA+ and above rated corporate bonds. The minimum
investment in corporate bonds shall be 80 percent of total assets.

 Balanced/Hybrid Funds:
Balanced Funds invest in both equities and fixed income instruments in line with the predetermined investment
objective of the scheme. These funds provide both stability of returns and capital appreciation to investors.

Types of Hybrid Funds

a) Aggressive Hybrid Fund:

An open ended hybrid scheme investing predominantly in equity and equity related instruments. Invest in
equity and equity related instruments shall be between 65 percent and 80 percent of total asset while investment
in debt instrument shall be between 20 percent and 35 percent of total asset.

b) Balanced Hybrid Fund:

An open ended scheme investing in equity and debt instruments. The investment in equity and equity related
instruments shall be 40 percent and 60 percent of total assets while investment in debt instrument shall be
between 40 percent and 60 percent. No arbitrage is permitted in these schemes

c) Conservative Hybrid Fund:

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An open ended hybrid scheme investing predominantly in debt instruments shall be between 75 percent and 90
percent total asset while in equity and equity related instruments shall be 10 percent and 25 percent of total
assets.

 Other Schemes

 Tax Saving Funds:

Tax-saving schemes offer tax rebates to investors under specific provisions of the Income tax
Act1961. These are growth-oriented schemes and invest primarily in equities. Like an equity scheme, they
largely suit investors having a higher risk appetite and aim to generate appreciation over medium to long run.

 Index Funds:

Index Funds replicate the performance of a particular index such as the BSE Sensex or the S&P
CNX Nifty. The portfolio of these schemes consist of only those stocks that represent the index and the
weightage assigned to each stock is aligned to the stock‟s weightage in the index.

 Sector-Specific Funds:

Sector-specific Funds invest in the securities of only those sectors or industries as specified in the scheme
information department. The returns in these funds are dependent on the performance of the respective
sector/industries.
2.6.Important Key Words Related To Mutual Funds

 NAV: Net asset value refers to the total value of the related mutual fund scheme. It shows the
overall value which may vary everyday as per the changes in the market.

 Units: The value of mutual fund is divided into units as per the number of persons it is sold. The
value of each unit changes every day.

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 Unit holder: The investor who purchases the units of mutual funds is called unit holder. He/she
may keep as many units as he/she wants.

2.7 The Selected AMC‟s In India

1. ICICI Prudential Asset Management Company

“ ICICI Prudential mutual fund is the second largest asset management company in India. ICICI
prudential mutual fund was established in 1993 ”

Type Public

Industry Mutual funds

founded 1993

Headquarters Mumbai

Area served India

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Key people Mr. Nimesh Shah (MD & CEO)
Mr. S. Naren (Chief Investment Officer)
Mr. Rahul Goswami (Chief Investment Officer - Fixed Income)

Products Mutual Fund, Portfolio Management Services, Advisory Services, Real

Estate Investments

AUM Increase ₹305,739 crore (US$43 billion) (31 March 2018)

Number of 2000-2500
employees

2. HDFC Asset Management Company

HDFC provides mutual fund services through its subsidiary HDFC Asset
Management accounting
Limited. The average Assets Under Management (AUM) of HDFC Mutual Fund for the quarter Jul-13 to Sep-
13 was INR 1.03 trillion.

Operations
HDFC's distribution network spans 396 outlets (including 109 offices of HDFC's distribution company

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HDFC Sales Private Limited) which cater to approx. 2,400 towns and cities spread across India. To cater to
Non-Resident Indians, HDFC has offices in London, Singapore and Dubai and service associates in Middle
East countries.

In addition, HDFC covers over 90 locations through its outreach programmer. HDFC's marketing efforts
continue to be concentrated on developing a stronger distribution network. Home loans are also sourced
through HDFC Sales, HDFC Bank Limited and other third party direct selling Agents (DSA).
The corporation has 232 institutional owners and shareholders filing through 13D/G or 13F forms with
the Securities Exchange Commission. Largest investor amongst them is Vanguard International Growth Fund.

2. Aditya Birla Sun Life AMC Limited

Formerly known as Birla Sun Life Asset Management Company, this fund house is the 3rd largest in terms of
the AUM size.
Presently it is known as Aditya Birla Sun Life (ABSL) Asset Management Company Ltd. It is a joint
venture between the Aditya Birla Group in India and Sun Life Financial Inc of Canada. It was set up as a
joint venture in 1994.

4. Nippon Life Asst Management

With Assets under Management of approximately ₹ 2.5 Lakh crore, Reliance Mutual Fund is one of India‟s
leading mutual fund companies.

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A part of Reliance Anil Dhirubhai Ambani (ADA) Group, Reliance Mutual Fund is one of the fastest growing
AMCs in India.
Reliance Capital Limited (RCL) is the sponsor and Reliance Capital Trustee Co. Limited is the trustee of
Reliance Mutual Fund (RMF). It was registered on June 30, 1995. Reliance Mutual Fund was originally
Reliance Capital Mutual Fund and changed its name in 2004.
5. SBI Fund Management Pvt. Ltd.

SBI Funds Management Pvt. Limited is a joint venture between the State Bank of India (SBI) and financial
services company Amundi, a European Asset Management company in France. It was launched in 1987.
Ms. Anuradha Rao is the Managing Director and CEO.
In 2013, SBI Fund Guru, an investor education initiative was launched.

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 Chapter 3REVIEW OF LITERATURE

1. (Dr.K.M.Sudha, 2020) Conducted research on “Comparative Study on Selected Mutual Fund”.

The objective of the study is to comparative performance analysis fir selected mutual funds for five years and
also risks and returns of mutual funds. This study evaluates the analysis of returns that takes place for five years
and their volatility based on investment. The sources of data are secondary data.
The tools used for analysis are simple average method and standard deviation method and simple comparative
analysis method and ranking method. The findings that is not advisable to invest equity fund category as the
market undergoing fluctuations asset components are subject to high risk.

2. (Shivam Tripathi, Dr. Gurudutta P. Japee, March 2020) Conducted research on “Performance

Evaluation of Selected Equity Mutual Funds in India”. The objective of the study to know whether
mutual funds give reward to changeability and unpredictability and also identify security market return
with fund return. The data are secondary data is gathered from different sources like factsheets
of different AMCs and historical NAV and yearly return. The statistical tools Jenson‟s alpha, beta,
standard deviation and Sharpe ratio. The performance analysis of the selected 15 equity funds and clearly
identified that the 10 funds are performed well and 5 are not during the study. The findings of the study the
volatility in the market are changes in the performance of the various stocks.

3. (Anuja Magdum, March 2019) Conducted research on “A Comparative study on Mutual Fund

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Schemes of Selected AMC's in India”. The objective of this research is that to provide better returns for the
schemes promised by AMC‟s and compare the mutual fund schemes of selected public and private sector
AMC‟s in India. The data collected for the study is to consider the 5 years and for comparison 4 AMC‟s with
each other. For a risk free return fixed deposit rate are used and the data are collected from the yahoo finance,
AMFI website and value research website. The methodology used in this research is beta and CAGR. The study
has investigated the performance of equity based
MF schemes in India and the private sector can better performed compare to the public sector.

4. (Dr. Nidhi Sharma, Feb, 2019) Conducted research on “Performance Analysis of Mutual Funds: A

Comparative Study of the Selected Hybrid Mutual Fund Schemes in India”. The objective of the study is to
measure and compare the performance of the select hybrid mutual fund schemes in India. The selection of
hybrid schemes is based on top 10 ranking given by CRISIL and that rank based on the
NAVs of the schemes. The data are used is primary data and tools used in this study are NAV, average return,
beta, R- square and standard deviation.

5. (Manisha Raj, Oct.2018) Conducted research on “Performance of Mutual Funds in India: A

Comparative Analysis of SBI Mutual Funds and HDFC Mutual Fun.” The objective of the study is to
analyze and compare the performance of SBI and HDFC mutual fund with special reference to
Equity and balanced mutual fund. The study is based on the analysis of secondary data which is collected

from reviewing different research papers and articles published by different authors. The method for study is
use standard deviation, beta, alpha, Sharpe ratio, Correlation – coefficient. The research was found that the
rate of return of HDFC is higher than the SBI.

6. (Anil Kumar Goyal, June 2018) Conducted research on “A comparative study of return of selected
mutual fund schemes with nifty50”. The objective of the study is to compare average long run mutual fund of
each selected company and also compare with the nifty50 with mutual fund.

Research methodology is based on secondary data of NAVs and nifty50 collected online for the period of
one year. The nifty50 price was collected from yahoo finance. Findings for this study is the selected schemes
is compared with the monthly average of long return of benchmark nifty50 and find that SBI is better in
terms of volatility and returns.

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7. (Nadia, March,2018) Conducted research on “A Comparative Analysis of Mutual Fund

Schemes”. The objective is to analyze the risk and return of the selected fund schemes and compare the same
with BSE-Sensex and also compare the performance with the market index whether they are outperforming
or underperforming. The research methodology consists of primary and secondary

data. The secondary data collected from the various sources. The data are measuring through standard deviation,
beta, alpha and coefficient of determination. The result of this study is to find out the 14 schemes are
outperformed the benchmark returns.

8. (Rani, 2018) Conducted research on “Performance Analysis of Mutual Funds: A Study of

Balanced Schemes”. The purpose of the study is to examine the performance of selected public and private
sector mutual funds particularly for their balanced schemes during the study period. The data analysis is basics
quantitative results of selected schemes. This study provides the overall mutual fund industry of India during a
year of 2018.

9. (Anand, September,2017) Conducted research on “A Comparative Analysis on Various Mutual

Fund Schemes of HDFC and SBI as an Investment Option for Retail Investors in India”. The objective of
the study is to compare the performance of selected mutual fund and evaluate the risk and return using the
various statistical tools like CAGR (Capitalized Annual Growth Rate), Alpha, Beta, Standard Deviation and
Sharpe ratio and parameters and also analysis that which mutual fund scheme is provide better return. The
random samplings are using in this study and also the six mutual fund

schemes are compare by the researcher including equity, debt, balanced and sector specific funds. The findings
of this study that the mutual funds provide the professional approach towards the investment.

10. (N.Nandhini Devi, Dr.A.Velanganni Joseph, Sep.2017) Conducted research on “Determinants of

Mutual Fund Selection by Individual Investors in Coimbatore City”. The objective of this study is to

27
examine the factors that are considered important in selecting a mutual fund and to identify the information
influences the mutual fund investors.

To accomplish the objective, a questionnaire survey was designed to identify the fund selection criteria adopted
by mutual fund investors. The result of thestudy after analyzing the response collected from 526 mutual fund
individual investors in Coimbatore city and the print media source has high influence on mutual fund investor‟s
decision making.

11. (Dr M.Ravichandran, May 2017) Conducted research on “A study on performance evaluation
mutual fund schemes in India”. The objective of the research to identify the performance of open ended
equity mutual fund schemes and measure the performance and analysis the risk and return of their performance
and also evaluate the future investment regarding open ended equity scheme. The collection of data is on
systematic basis for analysis. The data are collected from various sources from the association of mutual fund
India, BSE India etc. the tools and techniques for analysis is used in this study is Sharpe ratio, Treynor ratio,
Jensen ratio, beta and standard deviation. The finding of this study is investigating the performance result
useful for investors for taking better investment decisions.

11. (Renuka, 2017) Conducted research on “A Comparative Study on

Performance of Mutual Funds and Its Schemes in India.” The research objective is to study about mutual
fund and also idea about regulation of mutual funds in
India.

The methodology is used the performance of selected funds is evaluated using average return, standard
deviation, beta and R-Square. This study provides some insights on mutual fund performance so as to assist the
common investors in taking the rational investment decisions for allocating their resources in correct mutual
fund schemes.

13. (N.Bhagyasree, April,2016) Conducted research on “A Study on Performance of Mutual

28
Funds in India”. The research objective is that the mutual fund is performing safe for the investor. The tools
and techniques are used in this research are Shape ratio, Treynor ratio, Jenson ratio, Beta, Standard deviation.
The result of this study is to find out the mutual funds were performing very safe for the investors and also
supervision to allow an investor to take the right decision.

14. (R. Kumar Gandhi, March 2016) Conducted research on “Performance of Selected Bank Mutual
Fund Schemes Impact in Investors Decision Making”. The objective of the research is to analyze the
performance of any mutual fund schemes in the selected banks and study the performance with the
different parameters. The sampling methods are using the convenience sampling and the sample size taken
4 schemes from public and private bank for 1 year. The tools for measuring by the standard deviation, beta,
alpha, Treynor and Sharpe ratio. Return for last one year are comparison for data analysis. The findings are
that the Canara Robeco equity tax saver schemes are performed very well.

15. (Satheesh Kumar Rangasamay, Dr. Vetrivel T. Athika M, May, 2016)

Conducted Research on “A Comparative Study on Performance of Mutual
Funds with Reference to Indian Context”

The objective of the research is to comparative performance analysis of selected mutual fund schemes in

16. various categories and also decision making regarding in the selected categories of mutual fund schemes.
The data are taken from the NSE, BSE and money control. The tools using in this study are simple average
method and standard deviation and ranking method. The finding of this study is to help the investor for
understanding the difference categories of mutual fund and evaluating the performance standard.

17. (Arthy B, Aug. 2015) Conducted research on “A Study on Factor Affecting Investment on Mutual
Fund and Its Preference of Retail Investors”. The objective of the study is to analyze the factor
influencing investing decisions of retail investors in mutual funds and investor perception and preference
towards mutual funds. The research methodology used for this study descriptive research design used in
this study. The research instrument used in the study is questionnaire and personal interview method. The

29
 sample size of the study s limited to 200 investors. The samplings are using snowball sampling and
random sampling. The findings that the tax benefits, high return, price and capital appreciation is some
major factors influence on investor decision making.

18. (Dr. Shriprakash Soni, April, 2015) Conducted research on “Comparative

Analysis of Mutual Fund Schemes available Kotak Mutual Fund and HDFC Mutual Fund”. The objective
of the study is to analyze and compare the performance of different mutual fund schemes and also know the
factor and those affect the mutual fund and find out the best scheme available for investors by comparing their
performance. The research are using with secondary data and using convenience sampling and time period of
study is 5 years. The tools and techniques are used in research in standard

deviation, Sharpe ratio, beta, alpha and R-square. Findings of the study is the companies are offering similar
types of schemes available for sectors and taking amount of risk, so they provide close returns with minimum
fluctuation.

19. (Ganapathi, 2015) Conducted research on “Mutual Fund: An Empirical Study With Reference To
Coimbatore City”. The objective is to evaluate the performance of selected mutual fund on the basis of risk-
return relationship and to examine the retail investor‟s perception towards mutual fund with reference to
Coimbatore city. The methodology used for this study is to analyze the growth and evaluate the performance of
mutual fund industry in India. To analyze the perception of retail investor towards mutual fund investment for
the decided period of time. The sample of 150 investors based on Quota sampling was used to select the
respondent around the Coimbatore city. The data collected through questionnaire and the findings of this
research that due to inability and improper management of fund manager have given a negative differential
return.

20. (Ms. Shilpi Pal, 2014) Conducted research on “A Critical Analysis of Selected Mutual Funds in India”.
The objective of the study is to study the performance of top 10 equity mutual fund schemes in various
categories and also compare the equity mutual fund. The research methodology is collecting the structural

30
 process of conducting the research. The tools for measuring by the standard26 deviation, beta, alpha,
Treynor and Sharpe ratio. Return for last one year are comparison for data analysis. The sampling has been
done on the basis of CRISIL rating. The study was found out that the midcap opportunity for invest in the
mutual fund having the better return.

21. (Badrivishal, 2013) Conducted research on “A study on Mutual Fund with Due Reference to „SBI
Mutual Funds”. The objective of this project is to study about behavior of the investors for preferring mutual
funds and understand the risk and return of the various schemes and also the productive avenue to invest in
contrast to laxity of bank investing. Then after their research design and also the nominal and interval scale are
using for data analysis. There are 50 respondents in which investors and non-investors are there. The can be
collected both primary and secondary sources. The finding of this project is the highest number of investor
come from salaried class and their 6% invest of their annual income in mutual fund.

22. (Dr. Sarita Bhal, July 2012) Conducted research on “A Comparative Analysis of Mutual Fund
Schemes in India”. The objective of the study to examine the performance of selected schemes on the basis of
risk and return and compare the performance of selected schemes with benchmark index to see the schemes is
outperforming and underperforming the benchmark. The research methodology is to select random basis and
monthly NAV of different schemes have been used for this study for the period of five years. In this study the
secondary data are used and the calculation done through standard deviation, beta, alpha and also consider the
market risk. The data are measured by the Sharpe, Jenson and Treynor ratios. For the research study the all
schemes are provide the positive returns.

23. (Sahil Jain, July-Aug.2012) Conducted research on “Analysis of Equity Based Mutual Fund in India”.
The objective if the study is to bring out a comparison between the performance of equitybased mutual
funds of public and private sector, in India. The basic tool used is CAPM (capital asset pricing model) and
calculate the expected rate of return for a portfolio, given its risk. The analysis is based on the risk-return

31
 relationship of mutual fund. The analysis finds that the private sector mutual funds have outperformed the
public sector.

24. (Subrata Roy, April 2012) Conducted research on “A Comparative Study of Mutual Fund
Performance during Recession in India”. The objective of the study is to examine the comparative risk-
adjusted performance and also comparative market timing performance of the companies. The sample
consists of 31 open ended Gilt type of mutual fund schemes selected from the public sector mutual fund.
For the analysis of data the Treynor ratio tools are used for measuring performance and the volatility ratio.
The researcher can be observed that the performance of the open ended gilt schemes of different types of
companies is not satisfactory during the recession.

25. (Deepika Sharma, May, 2011) Conducted research on “Comparative study of Selected Equity
diversified Mutual Fund Schemes”. The main objective of this study is to compare and analyze the27
equity diversified mutual fund schemes of selected mutual fund players. The data are collected through the
3 criteria in which
a) corpus size > 500 crore, b) Returns of 5 years, c) top 8 schemes on the basis of 5 years compounded
annualized returns. The tools and techniques used in study is standard deviation, Sharpe ratio to measures
volatility of returns. The samples are selected on the basis of returns of last one month, six months, one year,
three year and five year.

The performance evaluated through the alpha, beta, SD, r square, expenses ratio. The analysis on the basis of
returns over period if the time. Findings of the study is that in short run HDFC manages to be a number one in
terms of returns and in long run reliance number one position in terms of returns of last five years.

26. (Y.Maheshwari) Conducted research on “A Comparative Study on Performance of Selected Mutual

Fund in India.” The objective of the study is to analyze the return from selected mutual fund return for the
study period and performance of mutual funds with extraordinary reference to Sharpe model and Treynor
model.

32
27. The tools and techniques incorporate standard deviation, beta, alpha, Treynor and Sharpe ratio. The
information are collected from different sources like published annual reports of sponsoring agencies, online
bulletins, journal books, magazines etc. the result for the study that the negative returns with reference to lesser
then the benchmark.

Research Gap

After going through various reviews of literature, it is evident that many studies were conducted on mutual
funds. Some of them were related to investors‟ behavior, some of them specified their study on sartorial basis
and some analyzed the performance of all types of mutual funds in a combined basis, but a

very few work has been done specifically on the performance analysis of Hybrid Mutual funds. A very few
studies were also conducted on the factors that affect the performance of the mutual funds. Many researchers
went through various aspects of mutual funds, but the factors were taken into consideration by very few
researchers, so it is an area of interest for research work. This study is an attempt by the researcher to add more
research in this area. This comparative study aims to analyze and evaluate the performance of different
categories of different categories of mutual fund schemes and also to find out which fund scheme performs
better than the other fund schemes.

33
 Chapter 4

RESEARCH METHEDOLOGY

1.Research problem

“A Study on Comparative Analysis of Mutual Fund Schemes”

34
In a comparative market there are multiple mutual funds working in the Indian market. It is necessary to know
mutual fund as the performance of the mutual fund decides the future of Mutual Fund Company. In my study I
have compared 5 AMC‟s with each other and in which AMC performance is better than the other AMCs.

2. Objectives of the Research

 To analyze that which of selected mutual funds provide better return at lower the risk.

 To do comparative analysis of selected mutual fund schemes.

 To analyse risk and return of different schemes of mutual fund.

The mutual fund schemes are comparing with their benchmark return to know the performance of the schemes
and also know which mutual fund is providing the better return for the investor during the five years.

3. Sample Design
The research is based on the descriptive type of research design used in this research project.

4. Sources of Data
The sources of data are collected from the based on the secondary data. Data are collected through

online sources like NSE, BSE, and Money control, ET Money, Fincash and Morning Star etc.

5. Data collection
Secondary data has been used for this research, collected from various research papers. The study
consider the period of 5 years from 2016 to 2020.

6. Tools and Techniques

Statistical tools and techniques used in this study is Alpha, Beta, standard deviation, Sharpe ratio to measures
volatility of returns.

35
Standard Deviation () =

√−

Y = Fund Return

Sharpe ratio(S) 𝑅-𝑅𝑅

Where,

𝑅= Average Return30

𝑅= Risk free return

= Standard Deviatio

7. Sample Size

For this study 5 AMCs have been selected.

1. ICICI Prudential Mutual Fund

2. HDFC Mutual Fund

3. Aditya Birla Sun Life Mutual Fund

4. UTI Mutual Fund

5. SBI Mutual Fund

8. Report Writing :

Prepare a detailed report documenting the research

methodology, data sources, analysis framework, findings, and conclusions.

36
Present the information in a clear, concise, and organized manner, making it

accessible to stakeholders.

Equity Funds

ICICI HDFC ABSL Nippon SBI

Prudential Mutual Fund Mutual Fund
Mutual Fund India Mutual
Mutual Fund
Fund

Large cap ICICI HDFC Top 100 Aditya Nippon SBI Bluechip Fund
Fund
Prudential Birla Fund

Bluechip Fund Sun India Large Cap

Frontline Equity
Fund

Life

Midcap ICICI HDFC Aditya Birla Sun Nippon Growth SBI Magnum
Prudential Life Mid Fund Midcap Fund
Mid-Cap
Midcap
Cap Fund
Opportunities
Fund
Fund

Multicap ICICI HDFC flexi Aditya Birla Sun Nippon Multi SBI Magnum
cap Fund Life Equity Cap Fund Multicap Fund
Prudential
Fund
Multicap Fund

Small cap ICICI HDFC Small Aditya Birla Sun Nippon Small SBI Small Cap
Prudential Cap Fund Life Small Cap Fund Fund

37
 Small Cap Fund

Cap Fund

ELSS ICICI HDFC Tax Aditya Birla Sun Nippon Tax Saver SBI long term
Prudential Saver Fund Life Tax Fund equity fund
Long
Relief 96
Term Equity
Fund (Tax

Saving)

38
 Debt Fund

Low ICICI HDFC ABSL Low Nippon SBI

Prudential Duration Fund
Duration Fund Fund Fund
Savings
Fund Low Duration Low Duration Magnum Low
Fund
Duration

Short ICICI HDFC Short ABSL Nippon SBI Short Term

Prudential Term Debt Debt Fund
Duration Short Fund
Short
Fund
Fund Opportunities Short
Term Fund
Fund Term

Term

Ultra ICICI HDFC Ultra ABSL Savings Nippon SBI Magnum Ultra
Prudential Ultra Short Term Fund Short
Short Ultra
Short Term Fund Duration Fund
Duration Short
Fund
Fund Duration Fund

Medium ICICI HDFC Medium ABSL Medium Nippon SBI Magnum

Term Term Plan India Medium Duration
Duration Prudential
Classic
Debt Fund Fund
Fund Medium Term bond fund
Bond

Fund

Liquid ICICI HDFC Liquid ABSL liquid fund Nippon Liquid SBI Liquid Fund
Prudential Fund Fund
Fund
Liquid

Fund
 Money ICICI HDFC Money ABSL Money Nippon Money SBI Savings Fund
Prudential Market Manager Fund Market
Market
Money Fund
Fund
Fund 50
Market Fund

corporate ICICI HDFC ABSL Nippon SBI corporate

bond fund Corporate Corporate Bond bond fund
Prudential Prime
Bond Fund
Corporate Debt
Fund
Bond
Fund
Fund

40
 Chapter 5

DATA ANALYSIS

&

INTERPRETATION

Scheme Launc h AUM Expense 1- 2- 5- Since

name date (CRORE) ratio year % year % Year % launch
(%) rate
(%)

SBI small 05/09/2 1,604.50 2.44 -8.05 19.06 28.67 -

cap fund 009
regular
plangrowth

BOI AXA 12/12/2018 34.58 2.98 - - - 4.9

small cap
fund regular
plangrowth

HDFC small 05/04/20 6,311.85 2.12 -0.88 21.38 20.02 22.57

cap fund 08
regular
plangrowth

SBI small 18/10/2007 175.58 2.75 - 10.12 12.51 8.22

cap fund
11.55
regular
plangrowth

41
INTERPRETATION :-
Equity Small Cap Funds are those funds where, risk is

high, but returns are also high. Investors can get high returns, even there is high risk. Young investors can start
their investment in the Equity Small Cap Fund. In the public sector, SBI Small Cap Fund gives high returns of
18.76,as there is an expense ratio of 2.44, where in the private sector, HDFC Small Cap Fund gives the returns of
14.41, as there is an expense ratio of 2.12. Investment is also huge in these two funds

STATISTICAL PARAMETERS:-

- Alpha Beta R2 Share Standard

deviation
Ratio

42
SBI Small Cap 11.52 0.79 72.46 1.17 19.17

Fund

Regular Plan

Growth

HDFC Small 5.55 0.7 84.35 0.97 16.03

Cap

FundRegular

Growth Plan

ICICI -1.49 0.72 79.39 0.52 17.02

Prudential

Small

Cap Fund-
Growth

43
INTERPRETATION:-

SBI Small Cap Fund- Regular Plan Growth has the best

value of Alpha as compared to other schemes. It has 11.52 Alpha. So, it has performed better than its Beta.

HDFC Small Cap Fund- Regular Growth Plan has Alpha value 5.55. ICIC Prudential SmallCap Fund- Growth
has negative Alpha value i.e. -1.49, which indicates a fund has underperformed. All small cap schemes have a
Beta less than one. SBI Small Cap Fund- Regular Plan Growth has a Beta value of 0.79. HDFC Small Cap
Fund- Regular Growth Plan has a Beta value of 0.70 & ICICI Prudential

Small Cap Fund- Growth has 0.72 Beta value. It indicates that the investment is less risky than the market.

Each mutual fund scheme has more than 70 R-Squared, which indicates a more useful Beta figures has higher
Sharpe Ratio i.e. 1.17. HDFC has Sharpe Ratio of 0.97 & ICICI has 0.52. It indicates that SBI Small Cap Fund
has better historical risk-adjusted performance. SBI has Standard Deviation of 19.17, HDFC has Standard
Deviation of 16.03 & ICICI has 17.02. SBI has the greater Standard
Deviation than others, which indicates it has the greater fund’s volatility than others
Sharpe Ratio i.e. 1.17. HDFC has Sharpe Ratio of 0.97 & ICICI has

0.52. It indicates that SBI Small Cap Fund has better historical risk-adjusted performance. SBI has Standard
Deviation of 19.17, HDFC has Standard Deviation of 16.03 & ICICI has 17.02. SBI has the greater Standard
Deviation than others, which indicates it has the greater fund’s volatility than others.

44
INTERPRETATION:-
Scheme Launch AUM Expense 1year 3year 5year Since
name date (%) (%) (%) launch
(Crore) Ratio
Rate
(%) (%)

SBI 29/0/2005 3443.63 2.03 - 9.03 16.96 15.28

magnum
7.36
mid cap
fund
regular
plan
growth

Baroda mid 04/10/2010 44.74 3.13 - 10.89 7.34 -1.43

cap fund A
7.52
Growth
plan
growth

HDFC mid 03/06/2007 20,538.81 2.15 - 15.92 20.49 15.59

cap 0.99

Opportunit
y

45
fund
regular
plan

Growth

ICICI 28/10/2004 1518.20 2.46 - 13.97 20.03 16.93

prudential
3.01
midcap
plan
growth

Equity Mid Cap Funds are those funds where, risk is mid& returns are also mid. Investors can get mid
returns. In the public sector, SBI Mid Cap Fund gives the returns of 15.28, as there is an expense ratio of 2.03,
where in the private sector, HDFC Small Cap Fund gives the returns of 15.59, as there is an expense ratio of
2.15.

Name of the Alpha Beta R2 Share Standard

fund deviation
Ratio

SBI magnum 0.61 0.84 83.21 0.8 16.03

mid cap fund
regular plan
growth

Baroda mid -10.93 1.04 81 0.2 19.97

cap fund A

46
Growth plan
growth

HDFC midcap 2.57 0.92 92.24 0.95 16.76

Opportunity
fund regular
plan- growth

ICICI 1.96 0.92 85.78 0.89 17.26

prudential
midcap plan
growth

SBI Mid Cap Fund & HDFC Mid Cap Fund have huge investment.

47
STATISTICAL PARAMETERS –

Interpretation:

HDFC Mid Cap Fund has Alpha value of 2.57, ICICI Mid Cap Fund has1.96, SBI
Mid Cap Fund has 0.61 & Baroda Mid Cap Fund has negative Alpha value of -
10.93, which indicates that HDFC Mid Cap Fund has performed better than its Beta.
Baroda Mid Cap Fund has underperformed. SBI Mid Cap Fund has Beta value of 0.84, HDFC Mid Cap &
ICICI Mid Cap have Beta value of 0.92, which indicates that these three schemes have the investment which is
less risky than the market. Baroda Mid Cap Fund has Beta value of 1.04, which indicates that the investment is
more volatile than market.Each of the scheme has R-Squared value more than 70, which suggests that each one
has more useful Beta figure.

HDFC Mid Cap Fund has the higher Sharpe Ratio than
others i.e.95, it indicates that the fund has better historical risk-adjusted performance. Baroda Mid Cap Fund
has the greater Standard Deviation than others, which indicates it has the greater fund’s volatility.

48
Scheme Launch AUM Expense 1year 3year 5year Since
name date (%) (%) (%) launch
(Crore) Ratio
Rate
(%) (%)

SBI Blue 14/02/2006 20395.45 2.06 5.32 17.48 15.74 10.89

Chip Fund
regular
plan
growth

Baroda 22/06/2006 30.23 2.96 9.98 13.52 13.07 4.16

large cap
Growth
plan
growth

HDFC Top 11/10/2199 15,162.92 2.08 15.7 18.17 15.32 19

100 fund
regular

Plan
growth

ICICI 23/05/2008 20,100.84 2.02 9.23 15.89 14.85 14.18

49
 prudential
Blue-chip
plan
growth

INTERPRETATION:- Equity Large Cap Funds are those funds where,

risk is low & returns are also low. Investors can get moderate returns without taking risk. In the public sector,
SBI Large Cap Fund gives the returns of 10.89, as there is an expense ratio of 2.06, where in the private sector,
HDFC

Name of Alpha Beta R2 Share Standard

the fund deviation
Ratio

SBI Blue 2.54 0.9 90.92 0.87 13.2

Chip Fund

regular

50
plan
growth

Baroda -2.4 1.15 77.94 0.49 18.07

large cap
Growth
plan-
growth

HDFC Top 0.09 1.13 90.41 0.68 16.54

100 fund
regular
plan
growth

ICICI 1.27 0.93 95.74 0.79 13.24

prudential
Blue-chip
plan-
growth

Large Cap Fund gives high returns of 19, as there is an expense ratio of 2.08. But the investment in ICICI Large
Cap Fund is more than HDFC Large Cap Fund, as the fund has an expense ratio of 2.02

INTERPRETATION:-

SBI Large Cap Fund has positive & higher value of Alpha i.e. 2.54,
which indicates that it has better performance. ICICI & HDFC
Large Cap Fund have Alpha value 1.27 & 0.09 respectively. Baroda Large Cap
Fund has a negative Alpha, which shows it has under performed. SBI & ICICI Large Cap Fund have Beta
value less than one, which indicates the investment is less risky than the market. Baroda & HDFC Large Cap
Fund have Beta value more than one, which shows the investment in these schemes is more volatile than the
market. Every scheme has higher R-Squared value, which irrelevant to the fund’s performance. SBI Large
Cap Fund has higher Sharpe Ratio than others, shows the better fund’s historical risk-adjusted performance.
Baroda Large Cap Fund has higher Standard Deviation of 18.07, which indicates the greater fund’s volatility

51
Finding

1. SBI Small Cap Fund gives better returns in public sector, where HDFC Small Cap Fund gives better returns
InPrivate sector.

2. SBI Mid Cap Fund gives better returns in public sector, where HDFC Mid Cap Fund gives better returns in
private sector.

3. SBI Large Cap Fund gives better returns in public sector, where HDFC Large Cap Fund gives better returns
in-Private sector.

4. Statistical Parameters show that SBI Small Cap Fund & HDFC Small Cap Fund have high risk & better
performance as well.

5. SBI Mid Cap Fund, HDFC Mid Cap Fund & ICICI Mid Cap Fund have
performed well, as well as the investment in these schemes is less risky. Baroda Mid Cap Fund has
underperformed &more risk in the market.

6. SBI Large Cap Fund, ICICI Large Cap Fund & HDFC Large Cap Fund have performed better, where
Baroda Large Cap Fund has under performed. SBI Large Cap Fund & ICICI Large Cap Fund have less risk,
where HDFC Large Cap Fund & Baroda Large Cap Fund have more risk.

LIMITATIONS OF MUTUAL FUNDS

Although mutual fund is full of virtues yet it has some limitations. These may be listed as below•
Fluctuating Returns

52
• No Control on Fund Management:

• Diversification

• Fund Evaluation

• Past performance

• CAGR

FLUCTUATING RETURNS

Mutual fund does not guarantee a fixed return. In other words, mutual funds deal with a wide range of price
fluctuations. Professional management of a fund by a team of experts does not guarantee from bad performance
of your fund. NO

CONTROL ON FUND MANAGEMENT

All of the mutual funds are managed by expert fund managers. Many a times a

53
team of analysts support the fund manager, as an investor, none has any control your investment. All the
decisions related to investors fund are taken by fund manager.

DIVERSIFICATION

Diversification is one of the main advantages of a mutual fund. There is always the risk of diversification that it
may increase the operating cost of a fund. FUND EVALUATION A mutual fund's net asset value provides
investors the value of a fund's portfolio. Many investors may feel it difficult to extensively research and
evaluate the value of different funds. However, investors have to go through various parameters like sharpe
ratio and standard deviation to compare funds.

PAST PERFORMANCE

Advertisements and ratings issued by companies are an indicator of the past performance of a fund only. It is
important to note that excellent past performance of afund is not a guarantee of a same performance in the
future. As an investor should analyses the overall performance, transparency, ethics, compliance and

investment philosophy of a fund house across different phases in the market over a period of time.

Compound annual growth rate (CAGR)

The performance of a mutual fund i.e. the compounded annualized growth rate does not provide investors
adequate information about the amount of risk facing a mutual fund nor the process of investment involved. It
is therefore, only one of the indicators to gather the performance of a fund but it is not a comprehensive.
54
 Chapter6

BIBLIOGRA

6.1 Books :-

 Agarwal, Peensh Ranjan Mutual Funds A Comprehensive Approach to Mutual Funds, Orient Law House,
New Delhi (1996).

 Bhatt R S,Unit Trust of India and Mutual Funds,UTI Institute of Capital Market, Navi Mumbai, (1996).

 Fredman, Albert J and Wiles, Russ How Mutual Funds Work, Prentice Hall of India Private Limited, New
Delhi, (1997).

 Friend ect. Al, “A Study of Mutual Funds” U.S. Securities and Exchange Commission, USA, (1962).

 Friend, Blume, Crockett, Mutual Funds and Other Institutional Investors –A new perspective,Mc Graw Hill
Book Company, New York, (1970).

 Fuller, Russell J and James Farrell, Modern Investments & Security Analysis,Mc Graw Hill International,
New York, (1987).

 Gupta L C and Utpal K Choudhury, How Good Are Mutual Funds,Society forCapital Market Research and
Development, New Delhi, First Edition, (2001).

 Gupta L C, India’s Financial Markets & Institutions, Society for Capital MarketResearch and
Development, New Delhi (1999).

 Gupta L C, Mutual Funds and Asset Preference, Society for Capital MarketResearch and Development,
New Delhi, First Edition (1992).

 Gupta, Amitabh, Mutual Funds in India: A Study of Investment Management, Anmol Publications Pvt Ltd,
New Delhi, First Edition (2002).

55
6.2 JOURNALS :-

 Aabhas Pandya, “Have Mutual Funds passed the Test?” ICFAI

Reader,Vol.III:6,(June 2001), pp.50-51.

 Agrawal G D, “Mutual Funds and Investors’ Interest”,The Journal For Corporate Professionals Vol. XXII
(1), (January 1992), pp. 23-24.

 Agrawal, Ashok Motilal, “Mutual Funds-Emerging Trends and Prospects”, Finance India,Vol. XIV (4),
(December 2000) pp.1271-1275.

 Anagol Malati, “Role Of Self-Regulatory Organisation In Mutual Fund Industry

In India”,Chartered Financial Analyst , Vol. 7(1), (1992). p11

 Arditti, “Another Look at Mutual Fund

Performance”,Journal of Financial andQuantitative Analysis,Vol. 3, (1971)

 Arunajatesan S & Balaji S, “Mutual Funds: Bid for orderly growth”,THE HINDU Survey of Indian
Industry (2003), pp. 93-94.

 Ashutosh Joshi and Vandana, “MFs corner Rs 1 trn assets in 9 months”, BusinessStandard: Money&
Markets Section II, June 8, 2007 p.1.

 Ashutosh Joshi, “MFs to get rich with inflows from PSUs”, Business Standard:Money & Markets, Section
II, May 18, 2007, p.1.

 Atmaramani K N, “Mutual Funds: The Best Avenue for Investment”,Chartered Secretary,Vol. XXXI (1),
(January 2001) pp. 9-11.

56
 Baks Klaas P et al, “Should Investors avoid all Actively Managed Mutual Funds?A study in Bayesian
Performance Evaluation”Journal of Finance, Vol. LVI (1)(February 2001), pp. 45-83

Balaji Iyer S and Kumar Bhaskar R “Investor’s Psychology: A study of InvestorBehaviour in the Indian Capital
Market”,Finance India,Vol. XVI (4), (December2002), pp.1357-1375.

 Balzer, Leslie A “Snail Trails: Measuring Fund Manager Risk

/ReturnPerformance over time”,Journal Of Investing,Spring (1995), Vol. 4(1), pp.8-17.

 Banerjee, Arindam “Mutual Funds: Wealth Creation through

SystematicInvestment Plans”, ICFAI Portfolio Organiser, (April 2006) pp.53-58.

 Bansal L K and Gupta R K, “Mutual Funds: A case study of Master Share of UnitTrustof India”,The Indian
Journal Of CommerceVol. XLV (II), (June 1992), pp.89-96

 Bansal L K, “Challenges For Mutual Funds In India”,Chartered Secretary,Vol.21(10), (October 1991), pp.
825-26.

 Bansal L K, “Mutual Fund Investors Taken for Granted by AMCs”,Chartered Secretary, (April, 1996)
pp.114-5

Bansal, Manish “Mutual Funds: Eight Steps to nirvana”,Charterer Financial Analyst,Vol. 9(12),
(December 2003), pp. 34-40.

 Bergstresser, Daniel and Poterba, James “Do after-tax returns affect mutual fundinflows?” journal Of
Financial Economics,Vol. 63(1), (January 2002), pp. 381-414.

 Bhatia, Dilip “Mutual Fund Valuation Norms –A Review”,Chartered Secretary, Vol. XXX(12), (December
2000), pp. 1531-34.

57
 QUESTIONNAIRE
https://in.docworkspace.com/d/sICGS_YHwAZ28gq8G

“Survey of Mutual Fund Schemes”

1. Gander

a) Male

b) Female

c) Prefer but not to say

2. Age

a) Below -18

b) 18-30

c) 30-40

d) Above 40

3. Annual income

a) Below 1 Lakh

b) 1 Lakh - 2.5 Lakh

c) 2.5 Lakh - 5 Lakh

d) Above -5 Lakh
4. Do you know about Mutual Fund Schemes ?

58
a) Yes

b) No

c) Maybe

5. In this highly volatile market, do you think Mutual Funds are a destination for Investments? a) Yes

b) No

6. Which Mutual Fund Plan do you consider the best?

a) Balanced Plan

b) Equity Plans

c) Income Plans

d) Other

7. How long would you like to hold your Mutual Funds' Investments?

a) 1 to 3 Years

b) 4 to 6 Years

c) 7 to 10 Years

d) More than 10 Years

59
8. How do you rate the risks associated with Mutual Funds?

a) Low

b) Moderate

c) High

9. Which among the following principles do you consider while selecting a Mutual Fund?

a) Enquiring about the Fund Manager.

b) Finding about its past performance

c) Identifying your own objectives

d) Other

10. Which end-scheme do you feel is good? ( Open end type of mutual fund are those that does not have
restrictions on the amount of shares the fund will issue and Closed end fund is a publicly traded investment
company that raises a fixed amount of capital through an initial public offering (IPO). a) open end

b) Closed end

11. What do you think which risks usually affects Mutual Funds? (Systematic risk is the risks inherent to the
entire market segment as interest rates and unsystematic risks are specific risks as NEWS that affects specific
stock). a) Systematic Risk

b) Unsystematic Risk

12. Which among the following is the safest Investment option?

a) mutual Funds
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b) Stock Markets

c) Bank Deposits

d) Other

13. Which factors prevent you to invest in mutual fund ?

a) Bitter Past Experience

b) Lack of Knowledge

c) Lack of confidence in service being provided

d) Difficulty in selection of schemes

e) Inefficient investment advisors

f) Other

Responses :1.Gander:-

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2.Age :-

3.Annual income:-

4.Do you know about Mutual Fund Schemes ?

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5. In this highly volatile market, do you think Mutual Funds are a destination for Investments?

6. Which Mutual Fund Plan do you consider the best?

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7. How long would you like to hold your Mutual Funds' Investments?

8. How do you rate the risks associated with Mutual Funds?

9. Which among the following principles do you consider while selecting a Mutual Fund?

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10. Which end-scheme do you feel is good?

11. What do you think which risks usually affects Mutual Funds?

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12. Which among the following is the safest Investment option?

13. Which factors prevent you to invest in mutual fund ?

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Thankyou

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