INTRODUCTION TO MUTUAL FUND

1
INTRODUCTION TO MUTUAL FUND

Mutual fund is a trust that pools the savings of a number of investors

who share a common financial goal. This pool of money is invested in
accordance with a stated objective. The joint ownership of the fund is thus
“Mutual”, i.e. the fund belongs to all investors. The money thus collected is
then invested in capital market instruments such as shares, debentures and other
securities. The income earned through these investments and the capital
appreciations realized are shared by its unit holders in proportion the number of
units owned by them. Thus a Mutual Fund is the most suitable investment for
the common man as it offers an opportunity to invest in a diversified,
professionally managed basket of securities at a relatively low cost. A Mutual
Fund is an investment tool that allows small investors access to a well-
diversified portfolio of equities, bonds and other securities. Each shareholder
participates in the gain or loss of the fund. Units are issued and can be redeemed
as needed. The funds Net Asset value (NAV) is determined each day.

Investments in securities are spread across a wide cross-section of

industries and sectors and thus the risk is reduced. Diversification reduces the
risk because all stocks may not move in the same direction in the same
proportion at the same time. Mutual fund issues units to the investors in
accordance with quantum of money invested by them. Investors of mutual funds
are known as unit holders.

 SCHEMES

1. Mutual funds are allowed to start and operate both closed-end and open-
end schemes;

2
2. Each closed-end schemes must have a Minimum corpus (pooling up) of
Rs 20 crore.
3. Each open-end scheme must have a Minimum corpus of Rs 50 crore.
4. In the case of a Closed –End scheme if the Minimum amount of Rs 20
crore or 60% of the target amount, whichever is higher is not raised then
the entire subscription has to be refunded to the investors.
5. In the case of Open-Ended schemes, if the Minimum amount of Rs 50
crore or 60 percent of the targeted amount, whichever is higher, is not
raised then the entire subscription has to be refunded to the investors.

 ADVANTAGES OF MUTUAL FUND:-

• Portfolio Diversification
• Professional management
• Reduction / Diversification of Risk
• Liquidity
• Flexibility & Convenience
• Reduction in Transaction cost
• Safety of regulated environment
• Choice of schemes
• Transparency

 DISADVANTAGE OF MUTUAL FUND:-

• No control over Cost in the Hands of an Investor

• No tailor-made Portfolios
• Managing a Portfolio Funds
• Difficulty in selecting a Suitable Fund Scheme

3
 HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY

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. Though the growth was slow, but it accelerated
from the year 1987 when non-UTI players entered the Industry.

In the past decade, Indian mutual fund industry had seen a

dramatic improvement, both qualities wise as well as quantity wise.
Before, the monopoly of the market had seen an ending phase; the Assets
under Management (AUM) was Rs67 billion. The private sector entry to
the fund family raised the Anum to Rs. 470 billion in March 1993 and till
April 2004; it reached the height if Rs. 1540 billion.

The Mutual Fund Industry is obviously growing at a tremendous

space with the mutual fund industry can be broadly put into four phases
according to the development of the sector. Each phase is briefly
described as under.

First Phase – 1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of

Parliament 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 crores of assets
under management.

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

4
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). MIDCAP MUTUAL
FUND Mutual Fund was the first non- UTI Mutual Fund established in
June 1987 followed by Canbank 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 crores.

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

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.
As at the end of January 2003, there were 33 mutual funds with total
assets of Rs. 1, 21,805 crores.

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 crores as at the end of January 20014, representing broadly,

5
 the assets of US 64 scheme, assured return and certain other schemes.
The second is the UTI Mutual Fund Ltd, sponsored by MIDCAP
MUTUAL FUND, PNB, BOB and LIC. It is registered with SEBI and
functions under the Mutual Fund Regulations. Consolidation and growth.
As at the end of September, 2004, there were 29 funds, which manage
assets of Rs.153108 crores under 421 schemes.

INVESTMENT NORMS

1. No mutual fund, under all its schemes can own more than five percent of
any company’s paid up capital carrying voting rights.
2. No mutual fund, under all its schemes taken together can invest more than
10 percent of its funds in shares or debentures or other instruments of any
single company.
3. No mutual fund, under all its schemes taken together can invest more than
15 percent of its fund in the shares and debentures of any specific industry,
except those schemes which are specifically floated for investment in one
or more specified industries in respect to which a declaration has been
made in the offer letter.
4. No individual scheme of mutual funds can invest more than five percent of
its corpus in any one company’s share.
5. Mutual funds can invest only in transferable securities either in the money
or in the capital market. Privately placed debentures, securitized debt, and
other unquoted debt, and other unquoted debt instruments holding cannot
exceed 10 percent in the case of growth funds and 40 percent in the case of
income funds.

6
DISTRIBUTION

Mutual funds are required to distribute at least 90 percent of their profits

annually in any given year. Besides these, there are guidelines governing the
operations of mutual funds in dealing with shares and also seeking to ensure
greater investor protection through detailed disclosure and reporting by the
mutual funds. SEBI has also been granted with powers to oversee the
constitution as well as the operations of mutual funds, including a common
advertising code. Besides, SEBI can impose penalties on Mutual funds after
due investigation for their failure to comply with the guidelines.
ORGANISATION OF A MUTUAL FUND

There are many entities involved and the diagram below illustrates the
organizational set up of a Mutual Fund:

Mutual Funds diversify their risk by holding a portfolio of instead of only one
asset. This is because by holding all your money in just one asset, the entire

7
fortunes of your portfolio depend on this one asset. By creating a portfolio of a
variety of assets, this risk is substantially reduced.

Mutual Fund investments are not totally risk free. In fact, investing in Mutual
Funds contains the same risk as investing in the markets, the only difference
being that due to professional management of funds the controllable risks are
substantially reduced. A very important risk involved in Mutual Fund
investments is the market risk. However, the company specific risks are
largely eliminated due to professional fund management.

Kinds of Mutual Funds

Mutual funds are divided into several kinds of categories, representing the kinds
of securities the mutual fund manager invests in.

One of the largest is the fixed income category. A fixed income mutual fund

focuses on investments that pay a fixed rate of return, such as government
bonds, corporate bonds or other debt instruments. The idea is the fund portfolio
generates a lot of interest income, which can then be passed on to shareholders.

Another group falls under the moniker "index funds."  The investment strategy
is based on the belief that it is very hard, and often expensive, to try to
consistently beat the market. So the index fund manager simply buys stocks that
correspond with a major market index such as the S&P 500 or the Dow Jones
Industrial Average. This strategy requires less research from analysts and
advisors, so there are fewer expenses to eat up returns before they are passed on
to shareholders. These funds are often designed with cost-sensitive investors in
mind.

If an investor seeks to gain diversified exposure to the Canadian equity market,

he can invest in the S&P/TSX Composite Index, which is a mutual fund that

8
covers 95% of the Canadian equity market. The index is designed to provide
investors with a broad benchmark index that has the liquidity characteristics of a
narrower index. The S&P/TSX Composite Index is comprised largely of the
financials, energy and materials sectors of the Canadian stock market, with
sector allocations of 35.54%, 20.15% and 14.16%, respectively. Performance of
the fund is tracked as the percentage change to its overall adjusted market cap.

Other common types of mutual funds are money market funds, balanced

funds, sector funds, equity funds and even funds-of-funds, or mutual funds that
buy shares of other mutual funds.

Mutual Fund Fees

In mutual funds, fees are classified into two categories: annual operating

fees and shareholder fees. The annual fund operating fees are charged as an
annual percentage of funds under management, usually ranging from 1-3%. The
shareholder fees, which come in the form of commissions and redemption fees,
are paid directly by shareholders when purchasing or selling the funds.

Annual operating fees are collectively as the expense ratio. A fund's expense

ratio is the summation of its advisory fee or management fee and
its administrative costs. Additionally, sales charges or commissions can be
assessed on the front-end or back-end, known as the load of a mutual fund.
When a mutual fund has a front-end load, fees are assessed when shares are
purchased. For a back-end load, mutual fund fees are assessed when an investor
sells his shares.

Sometimes, however, an investment company offers a no-load mutual fund,

which doesn't carry any commission or sales charge. These funds are distributed
directly by an investment company rather than through a secondary party.

9
Some funds also charge fees and penalties for early withdrawals.

Clean Share Mutual Funds

If you want to get the biggest bang for your buck, you might consider mutual
funds with 'clean shares,' a relatively new class of mutual fund shares developed
in response to the U.S. Department of Labor’s fiduciary rule. According to a
recent Morningstar Inc. report, clean shares could save investors at least 0.50%
in returns as compared to other mutual fund offerings. Even better, investors
could enjoy an extra 0.20% in savings, as their advisors will now be tasked with
recommending funds that are in investors' best interests, according to the report.

Clean shares were designed, along with low-load T shares and a handful of

other new share classes, to meet fiduciary-rule goals by addressing problems
of conflicts of interest and questionable behavior among financial advisors. In
the past some financial advisors have been tempted to recommend more
expensive fund options to clients to bring in bigger commissions. Currently,
most individual investors purchase mutual funds with A shares through
a broker. This purchase includes a front-end load of up to 5% or more, plus
management fees and ongoing fees for distributions, also known as 12b-1 fees.
To top it off, loads on A shares vary quite a bit, which can create a conflict of
interest. In other words, advisors selling these products may encourage clients
to buy the higher-load offerings.

Clean shares and the other new classes eliminate this problem, by standardizing
fees and loads, enhancing transparency for mutual fund investors. “As the
Conflict-of-Interest Rule goes into effect, most advisors will likely offer T
shares of traditional mutual funds … in place of the A shares they would have
offered before,” write report co-authors Aron Szapiro, Morningstar director of
policy research, and Paul Ellenbogen, head of global regulatory solutions. “This

10
will likely save some investors money immediately, and it helps align advisors’
interests with those of their clients.”

For example, an investor who rolls $10,000 into an individual retirement

account (IRA) using a T share could earn nearly $1,800 more over a 30-year
period as compared to an average A-share fund, according to the analysis. The
report also states that the T shares and clean shares compare favorably with
“level load” C shares, which generally don’t have a front-end load but carry a
1% 12b-1 annual distribution fee.

Good as the T shares are, clean shares are even better: They provide one
uniform price across the board and do not charge sales loads or annual 12b-1
fees for fund services. American Funds, Janus and MFS are all fund
companies currently offering clean shares.

What Is a Midcap Fund?

A mid-cap fund is a pooled investment vehicle (e.g. a mutual fund or ETF) that
explicitly invests in the stocks of mid-cap companies, or companies with market
capitalizations ranging from approximately $2 billion to $10 billion.

Understanding Mid-Cap Funds

Mid-cap funds provide a diversified portfolio of mid-cap companies for
investors. Mid-cap stock funds invest in firms with established businesses.
Therefore, these companies have made equity capital markets a substantial part
of their capital structures. Overall, mid-cap companies tend to offer more
growth potential than large-cap stocks and with less volatility than the small-cap
segment. Mid-cap funds seek to capitalize on this capital appreciation potential
by creating funds that are diversified among mid-cap companies.

Many fund companies and indexes focus on mid-cap stocks with an additional
component such as growth or value. Mid-cap funds can be actively managed or

11
passively managed. The mid-cap segment of the market offers a wide range of
investment options for investors. Some of the mid-cap segment's most popular
benchmarks are the S&P MidCap 400, the Russell 1000 MidCap Index, and the
Wilshire US Mid-Cap Index. As of June 2019, the smallest member of the
Wilshire US Mid-Cap Index was valued at $1.4 billion. The largest had a
market capitalization of $14.3 billion.

Defining Midcap
"Mid-cap" is the term given to companies with a market capitalization (or
value) between $2 billion and $10 billion. As the name implies, a mid-cap
company falls in the middle between large-cap (or big-cap) and small-
cap companies. Classifications such as large-cap, mid-cap, and small-cap are
only approximations and may change over time.

Most financial advisors suggest that the key to minimizing risk is a diversified

portfolio; Investors should have a mix of small-cap, mid-cap, and large-cap
stocks. However, some investors see mid-cap stocks as a way to diversify risk
as well. Small-cap stocks offer the most growth potential, but that growth comes
with the most risk. Large-cap stocks offer the most stability, but they offer
lower growth prospects. Mid-cap stocks are a hybrid of the two, providing both
growth and stability.

Benefits of Mid-Cap Funds

Mid-cap funds have some advantages over both individual mid-cap stocks and
other fund types. While less volatile than small-cap stocks, holding only a few
mid-cap funds is usually much riskier than holding several large-cap stocks. By
investing in a mid-cap fund, investors can capture the growth potential of mid-
cap funds without company-specific risks.

12
Mid-cap funds can follow a somewhat different pattern than either large or
small stocks. Because of this they are useful for portfolio diversification.
Historically, there have been long periods when either large or small stocks
outperformed. Choosing a mid-cap fund can prevent investors from going too
far in the wrong direction.

Criticism of Mid-Cap Funds

By investing in a mid-cap fund rather than holding individual mid-cap stocks,
investors can miss out on massive gains. In particular, the CAN SLIM system
developed by William J. O'Neil is often applied successfully to mid-cap stocks.
The idea is that winning stocks can be spotted on their way up through the small
caps. By the time stocks reach the mid-cap funds, the speculators are ready to
profit. For example, O'Neil flagged Netflix (NFLX) as a top pick in 2009.
However, most investors are less successful at picking winners.

Examples of Mid-Cap Funds

Here are some examples of the market’s top mid-cap funds.

BlackRock MidCap Growth Equity Fund (BMGAX)

The BlackRock MidCap Growth Equity Fund is an actively managed mutual
fund. It seeks to invest in mid-cap companies from the Russell MidCap Growth
Index that it believes have superior growth characteristics. As of October 25,
2019, it had a year-to-date net asset value (NAV) return of 27.94%. The fund is
benchmarked to the Russell MidCap Growth Index, which had a return of
27.26%. The fund had a gross expense ratio of 1.30% and a net expense ratio of
1.05% for A-shares.

Vanguard Mid-Cap ETF (VO)

The Vanguard Mid-Cap ETF is one of the largest passive index funds in the
mid-cap market segment. The fund uses an index replication strategy to track

13
the holdings and performance of the CRSP U.S. Mid Cap Index. As of October
25, 2019, the fund has a year to date NAV return of 24.01%. The fund has an
expense ratio of 0.04%.

Large cap funds

Large cap funds are those funds which invest a larger proportion of their corpus
in companies with large market capitalization. Trustworthy, reputable and
strong are three adjectives that are often used to describe a large-cap company.
These are the old and well-established players with a track record. Such
companies typically have strong corporate-governance practices, and have
generated wealth for their investors slowly and steadily over a long term. These
corporate houses are usually among the most highly followed and well-
researched on the market. Mutual funds that invest a majority of their investible
corpus in these companies are labeled as large-cap funds.

Mid-caps

Mid-caps are those that they lie between large-caps and small-caps in terms of
company size. During a bull phase, mid-cap stocks may outperform their large-
cap counterparts, as these companies seek to expand by looking out for suitable
growth opportunities. Investors should, however, note that the underlying stocks
are more volatile than their large-cap counterparts. Mutual funds that mainly
invest in mid-cap entities are labeled mid-cap funds. Through prudent stock
selection, diversification across sectors, and market timing, fund managers aim
for better returns.

Small Cap Mutual Funds

Small-cap stocks typically have the highest growth potential, since the
underlying companies are young, and seek to expand aggressively. They are
more vulnerable to a business or economic downturn, making them more

14
volatile than large and mid-caps. Investors who are keen to invest in the small-
cap space and may not have the time to research but possess the high risk-taking
capacity can look to invest in small cap funds

15
OBJECTIVES OF THE STUDY

16
 OBJECTIVES OF THE STUDY

 To gain an understanding and knowledge of mutual funds as an

investment tools.
 To study the product profile of the company.
 To evaluate the performance of selected schemes of mutual fund of
different companies.
 To compare the mutual fund schemes on different parameters.
 To study the diversification of mutual fund.
 To know the different asset management companies involve in MUTUAL
FUND.

17
HYPOTHESIS

18
 HYPOTHESIS

 Ho (Null Hypothesis) there is no significant difference between the return generated

by mid and large cap mutual fund beach mark return.

 Alternate hypothesis (H1) there is significant difference between the return generated
by mid and large cap mutual fund beach mark return.

19
 SCOPE OF THE STUDY

SCOPE OF THE STUDY (1 full page)

 Time constraint serves will be the main limitation for the study.

20
 The study is limited only to the analysis of mutual funds and its
suitability to different investors according to their risk-taking ability.
 The study is confined to the Mutual Fund of Midcap Mutual Fund of
various component in finance.

21
 LIMITATIONS OF THE STUDY

LIMITATIONS OF THE STUDY (1 full page)

 This study is limited to Mutual fund in India only.

22
 The time is the main constraint due to which limited time period is spent on this
study.
 This study is based on secondary data available from websites, books as primary data
is not accessible.

 The period of study is for three years i.e. 2017, 2018 & 2019.

23
 RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

24
 This report is based on primary as well secondary data, however primary
data collection was given more importance since it is overhearing factor in
attitude studies. One of the most important users of research methodology is
that it helps in identifying the problem, collecting, analyzing the required
information data and providing an alternative solution to the problem .It also
helps in collecting the vital information that is required by the top management
to assist them for the better decision making both day to day decision and
critical ones.

Research Methodology decides the territory of proposed study and gives

information to the readers about adopted process of analysis for the respective
study. This includes aims for which the study is undertaken. This also clarify
time, scope, data sources etc. of proposed study. Another significant aspect is
tools and techniques which are used for the study. In brief this chapter helps to
the researcher to decide his path of research work.

In the light of the above, the research study has been undertaken to study
the selected banks to know, what policies, structural and procedural changes
taken place in these selected banks and how these changes made impact on
these banks. The other individual benefit of undertaking this research to the
researcher is to grab an opportunity to meet and discuss with Academic
Professional, Govt. Officials, regulatory Bodies of Government, Practical
Bankers, Business and Industry, Executives, State Government Officials,
Researchers and Policy Makers on various issues related to the banking sector
reforms and their impacts in India.

Research Universe:-

25
 It has been assumed that Midcap Mutual Fund of whole Customer.

Research Design:-

Application of Research:-

 Pure Research
 Applied Research

Objective of Research:-

 Descriptive
 Correlation
 Explanatory

Inquiry Mode of Research:-

 Structured Approach
 Unstructured Approach

Research type:-

It is design to describe something the characteristics of users of a given

product; the degree to which product use varies with income, ages, sex,
and other characteristics. It should not be concluded that such studies
should be simply fact gathering expeditions.

Sampling Design:-

Data has been presented with the help of Bar graph, Pie charts, Line
graphs etc.

RESEARCH DESIGN

26
 Research design is a pre-planned sketch for the explanation of a problem. It is the first
step to take and the whole research. Study will conduct on the basis of this research design. It
gives us a due that how the further process would be taking place and how would be the
research study carry into classification, interpretation and suggestions. This is a guideline for
the whole work.

SAMPLING TECHNIQUE

Convenience technique is used in exploratory research where the researcher is

interested in getting an inexpensive approximation of the truth. As the name implies, the
sample is selected because they are convenient. This non probability method is often used
during preliminary research efforts to get a gross estimate of the results, without incurring the
cost or time required to select a random sample.

 METHOD OF DATA COLLECTION:-

Data collection carried out by way of personal interview of

customers of MIDCAP MUTUAL FUND at Nagpur Branch,
questionnaires and literature review. The literature review carried out
through records of bank, customer feedbacks, journals and other
publications.

 Tools of Analysis:

The following statistical tools were used to analyze the data

1. Cross Tabulations.
2. Frequency distribution.
3. Percentage Analysis

27
 The main purpose of any data collection method is to enhance the
decision making ability of a decision maker; obviously, data collection
methods may be many.

The information we collect about you comes from the following

sources:

1. Internet.
2. Banking websites.
3. Based Questionnaire.
 SOURCES OF DATA COLLECTION:-

There are several ways of collecting the appropriate data which differ
considerably in context of money, cost, time and other sources at the
disposable of the researcher. These are two types of data.

1. Primary Data
2. Secondary Data

1. Primary Data:-

Primary data are those which are collected afresh and for the first time,
and thus happen to be original in character. In case of descriptive
research, researcher performs survey whether sample survey or census
survey, thus we obtain primary data either through

 Primary data collected by discussing with Questionnaire.

 Primary data collected by discussing with company officer.

28
2. Secondary Data:-

Secondary data are those which have already been collected by someone
else and have already been passed through statistical process. In this
project report, both types of data have been used. Mainly, secondary data
is used such as annual reports.
 Annual Reports

 Internet

 Company journal

 Various books

 Books

 Company Annual Report

Secondary data all the method of data collected can supply

quantitative data or qualitative data. Qualitative data may often be
presented in tabular or graphical form. Secondary data is that data
which has already been collected by someone else for different
purpose to yours.

29
REVIEW OF LITERATURE

30
 REVIEW OF LITERATURE

Dr. Sandeep Bansal, Deepak Garg and Sanjeev K Saini (2012), have studied
Impact of Sharpe Ratio & Treynor’s Ratio on Selected Mutual Fund Schemes.
This paper examines the performance of selected mutual fund schemes, that
the risk profile of the aggregate mutual fund universe can be accurately
compared by a simple market index that offers comparative monthly liquidity,
returns, systematic & unsystematic risk and complete fund analysis by using
the special reference of Sharpe ratio and Treynor’s ratio.
Dr. K. Veeraiah and Dr. A. Kishore Kumar (Jan 2014), conducted a research
on Comparative Performance Analysis of Select Indian Mutual Fund
Schemes. This study analyzes the performance of Indian owned mutual funds
and compares their performance. The performance of these funds was
analyzed using a five year NAVs and portfolio allocation. Findings of the
study reveals that, mutual funds out perform naïve investment. Mutual funds
as a medium-to-long term investment option are preferred as a suitable
investment option by investors.
Dr. Yogesh Kumar Mehta (Feb 2012), has studied Emerging Scenario of
Mutual Funds in India: An Analytical Study of Tax Funds. The present study
is based on selected equity funds of public sector and private sector mutual
fund. Corporate and Institutions who form only 1.16% of the total number of
investors accounts in the MFs industry, contribute a sizeable amount of Rs.
2,87,108.01 crore which is 56.55% of the total net assets in the MF industry. It
is also found that MFs did not prefer debt segment.
Dr Surender Kumar Gupta and Dr. Sandeep Bansal (Jul 2012), have done a
Comparative Study on Debt Scheme of Mutual Fund of Reliance and Birla
Sunlife. This study provides an overview of the performance of debt scheme
of mutual fund of Reliance, and Birla Sunlife with the help of Sharpe Index
after calculating Net Asset Values and Standard Deviation. This study reveals

31
that returns on Debt Schemes are close to Benchmark return (Crisil Composite
Debt Fund Index: 4.34%) and Risk Free Return: 6% (average adjusted for last
five year).
Prof. V. Vanaja and Dr. R. Karrupasamy (2013), have done a Study on the
Performance of select Private Sector Balanced Category Mutual Fund
Schemes in India. This study of performance evaluation would help the
investors to choose the best schemes available and will also help the AUM’s
in better portfolio construction and can rectify the problems of
underperforming schemes. The objective of the study is to evaluate the
performance of select Private sector balanced schemes on the basis of returns
and comparison with their bench marks and also to appraise the performance
of different category of funds using risk adjusted measures as suggested by
Sharpe, Treynor and Jensen.
E. Priyadarshini and Dr. A. Chandra Babu (2011), have done Prediction of
The Net Asset Values of Indian Mutual Funds Using Auto- Regressive
Integrated Moving Average (Arima). In this paper, some of the mutual funds
in India had been modeled using Box-Jenkins autoregressive integrated
moving average (ARIMA) methodology. Validity of the models was tested
using standard statistical techniques and the future NAV values of the mutual
funds have been forecasted.
Dr. Ranjit Singh, Dr. Anurag Singh and Dr. H. Ramananda Singh (August
2011), have done research on Positioning of Mutual Funds among Small
Town and Sub-Urban Investors. In the recent past the significant proportion of
the investment of the urban investor is being attracted by the mutual funds.
This has led to the saturation of the market in the urban areas. In order to
increase their investor base, the mutual fund companies are exploring the
opportunities in the small towns and sub-urban areas. But marketing the
mutual funds in these areas requires the positioning of the products in the
minds of the investors in a different way. The product has to be acceptable to

32
the investors, it should be affordable to the investors, it should be made
available to them and at the same time the investors should be aware of it. The
present paper deals with all these issues. It measures the degree of influence
on acceptability, affordability, availability and awareness among the small
town and sub-urban investors on their investment decisions.
Prof. Kalpesh P Prajapati and Prof. Mahesh K Patel (Jul 2012), have done a
Comparative Study On Performance Evaluation of Mutual Fund Schemes Of
Indian Companies. In this paper the performance evaluation of Indian mutual
funds is carried out through relative performance index, risk-return analysis,
Treynor's ratio, Sharp's ratio, Sharp's measure, Jensen's measure, and Fama's
measure. The data used is daily closing NAVs. The source of data is website
of Association of Mutual Funds in India (AMFI). The study period is 1st
January 2007 to 31st December, 2011. The results of performance measures
suggest that most of the mutual fund have given positive return during 2007 to
2011.
C.Srinivas Yadav and Hemanth N C (Feb 2014), have studied Performance of
Selected Equity Growth Mutual Funds in India: An Empirical Study during 1st
June 2010 To 31st May 2013. The study evaluates performance of selected
growth equity funds in India, carried out using portfolio performance
evaluation techniques such as Sharpe and Treynor measure. S&P CNX NIFTY
has been taken as the benchmark. The study conducted with 15 equity growth
Schemes (NAV ) were chosen from top 10 AMCs ( based on AUM) for the
period 1st June 2010 to 31st may 2013(3 years).
Rashmi Sharma and N. K. Pandya (2013), have done an overview of Investing
in Mutual Fund. In this paper, structure of mutual fund, comparison between
investments in mutual fund and other investment options and calculation of
NAV etc. have been considered. In this paper, the impacts of various
demographic factors on investors’ attitude towards mutual fund have been
studied. For measuring various phenomena and analyzing the collected data

33
effectively and efficiently for drawing sound conclusions, drawing pie charts
has been used and for analyzing the various factors responsible for investment
in mutual funds.
Rahul Singal, Anuradha Garg and Dr Sanjay Singla (May 2013), have done
Performance Appraisal of Growth Mutual Fund. The paper examines the
performance of 25 Growth Mutual Fund Schemes. Over the time period Jan
2004 to Dec 2008. For this purpose three techniques are used (I) Beta (II)
Sharpe Ratio (III) Treynor Ratio. Rank is given according to result drawn
from this scheme and comparison is also made between results drawn from
different schemes and normally the different are insignificant. Dhimen Jani
and Dr. Rajeev Jain (Dec 2013), have studied Role of Mutual Funds in Indian
Financial System as a Key Resource Mobiliser. This paper attempts to
identify, the relationship between AUM mobilized by mutual fund companies
and GDP growth of the India. To find out correlation coefficient Kendall’s tau
b and spearman’s rho correlation ship was applied, the data range was selected
from 1998-99 to 2009-10.
Dr. R. Narayanasamy and V. Rathnamani (Apr 2013), have done Performance
Evaluation of Equity Mutual Funds (On Selected Equity Large Cap Funds).
This study, basically, deals with the equity mutual funds that are offered for
investment by the various fund houses in India. This study mainly focused on
the performance of selected equity large cap mutual fund schemes in terms of
risk- return relationship. The main objectives of this research work are to
analysis financial performance of selected mutual fund schemes through the
statistical parameters such as (alpha, beta, standard deviation, r-squared,
Sharpe ratio).

34
DATA ANALYSIS AND INTERPRETATION

35
 DATA ANALYSIS AND INTERPRETATION

Data collection is the systematic recording of information. data analysis

involves working to uncover patterns and trends in data sets. Data
interpretation involves explaining those patterns and trends.

Scientist interprets data based on their background knowledge and experience,

thus different scientists can interpret same data in different ways.

By publishing their data and the techniques they used to analyze and interpret
that data. Scientists give the community the opportunity to both review the
data and use it in future research.

Data interpretation can be defined as applying statistical procedures to analyze

specific facts from a study or body of research. Data interpretation question
ate a part of many standardized tests.

Data analysis is considered to be important step and heart of the research in

research work. After collection of data with the help of relevant tools and
techniques, the next logical step is to analyzed and interprets data with a view
to arriving at empirical solution to the problem.

The data analysis for the present research was done quantitatively with the
help of both descriptive statistics and inferential statistic. The descriptive
statistical techniques like mean, standard deviation and for the inferential
statistic analysis of co-variance were used during data analysis.

36
MID CAP MUTUAL FUNDS AS ON FEB 2020
FOR 1 YEAR
Fund Name NAV (Rs.) AUM (Cr.) Returns Since Past Avg. Rolling
Inception
HDFC Mid- 57.43 23,788 14.7 15.22 22.03
Cap 25 Jun' 07
Opportunities
Fund
Franklin India 997.24 7,835 19.1 13.64 20.82
Prima Fund 01 Dec' 93
DSP Midcap 61.74 7,626 14.6 24.23 21.37
Fund 14 Nov' 06
Nippon India 1242.92 7,269 21.8 23.21 15.60
Growth Fund 08 Oct' 95
Kotak 43.60 6,733 12 25.46 20.40
Emerging 30 Mar' 07
Equity Fund
L&T Midcap 142.57 6,391 18.6 16.73 21.11
Fund 09 Aug' 04
Sundaram Mid 499.45 6,178 24.8 18.53 20.01
Cap Fund 19 Jul' 02
Axis Midcap 42.76 4,818 17.4 25.78 20.16
Fund 18 Feb' 11
UTI Mid Cap 107.77 3,916 14.1 17.76 20.99
Fund 30 Jul' 05
SBI Magnum 77.28 3,718 14.7 14.53 18.67
Midcap Fund 29 Mar' 05
Aditya Birla 288.93 2,505 21.4 11.97 17.15
Sun Life 03 Oct' 02
Midcap Fund
Motilal Oswal 29.03 1,986 19.4 29.28 14.76
Midcap 30 24 Feb' 14
Fund
ICICI 96.98 1,968 15.9 10.42 19.81
Prudential 28 Oct' 04
Midcap Fund
Mirae Asset 11.85 1,808 31.6 0 0.00
Midcap Fund 29 Jul' 19
Axis Emerging 13.56 1,408 10.6 24.68 4.44
Opportunities 03 Mar' 17
Fund - Series 2

37
 (1400 Days)
Edelweiss Mid 29.39 1,000 9.1 19.21 21.52
Cap Fund 26 Dec' 07
(Formerly
Edelweiss Mid
and S...
Tata Mid Cap 153.54 847 11.2 22.47 19.39
Growth Fund 01 Jul' 94
BNP Paribas 35.74 806 9.5 21.61 20.63
Mid Cap Fund 02 May' 06
Invesco India 55.27 756 14.1 22.96 21.82
Midcap Fund 19 Apr' 07
Nippon India 11.01 672 6.45 15.31 7.42
India 27 Sep' 18
Opportunities
Fund - Series
A
Axis Emerging 14.17 657 11.5 26.34 6.51
Opportunities 29 Dec' 16
Fund - Series 1
(1400 Days)
Mahindra 10.53 515 2.3 19.91 0.28
Unnati 30 Jan' 18
Emerging
Business
Yojana
Nippon India 7.80 338 -10.49 10.54 -8.53
Capital Builder 10 Nov' 17
Fund - IV -
Series B
Principal 10.70 216 50.9 0 0.00
Midcap Fund 30 Dec' 19
IDBI Midcap 11.38 197 4.11 14.11 -2.11
Fund 25 Jan' 17
Nippon India 10.40 151 1.65 15.96 -0.50
Capital Builder 23 Oct' 17
Fund - IV -
Series A
PGIM India 20.40 151 12 24.71 9.85
Midcap 02 Dec' 13

38
Opportunities
Fund
Nippon India 7.65 145 -11.64 9.77 -14.22
Capital Builder 21 Dec' 17
Fund - IV -
Series
Fund - IV - 8.85 95 -5.34 1.85 -4.95
Series C 10 Nov' 17
Sundaram 10.92 81 3.09 6.35 1.60
Value Fund - 19 May' 17
Series X
Taurus 7.93 67 -10.62 11.42 -11.46
Discovery 18 Jan' 18
(Midcap) Fund
Baroda Mid- 8.80 54 -5.61 2.09 -5.42
cap Fund 23 Nov' 17
Sundaram 47.53 52 6.31 20.97 17.21
Value Fund - 05 Sep' 94
Series III
Sundaram 9.61 49 -0.46 16.12 2.66
Value Fund - 04 Oct' 10
Series VII
Quant Mid 17.72 38 15.1 15.54 12.71
Cap Fund 05 Feb' 16
Sahara Midcap 8.51 26 -5.44 5.09 -10.71
Fund-Auto 07 Mar' 17
Payout
Sahara Midcap 59.25 11 9.79 14.44 8.62
Fund(G) 26 Feb' 01

39
FOR 3 YEAR
Fund Name NAV (Rs.) AUM (Cr.) Returns Since Past Avg. Rolling
Inception
HDFC Mid-
Cap 14.7
57.43 23,788 6.63 19.91
Opportunities 25 Jun' 07
Fund
Franklin India 19.1
997.24 7,835 6.85 17.72
Prima Fund 01 Dec' 93
DSP Midcap 14.6
61.74 7,626 9.56 18.20
Fund 14 Nov' 06
Nippon India 21.8
1242.92 7,269 10.19 13.52
Growth Fund 08 Oct' 95
Kotak 43.60 6,733 12 9.68 15.92

40
 Emerging
30 Mar' 07
Equity Fund
L&T Midcap 18.6
142.57 6,391 8.62 17.99
Fund 09 Aug' 04
Sundaram Mid 24.8
499.45 6,178 4.88 17.86
Cap Fund 19 Jul' 02
Axis Midcap 17.4
42.76 4,818 17.36 20.60
Fund 18 Feb' 11
UTI Mid Cap 14.1
107.77 3,916 5.88 17.78
Fund 30 Jul' 05
SBI Magnum 14.7
77.28 3,718 3.07 15.08
Midcap Fund 29 Mar' 05
Aditya Birla
21.4
Sun Life 288.93 2,505 3.81 15.30
03 Oct' 02
Midcap Fund
Motilal Oswal
19.4
Midcap 30 29.03 1,986 7.98 11.95
24 Feb' 14
Fund
ICICI
15.9
Prudential 96.98 1,968 5.53 14.68
28 Oct' 04
Midcap Fund
Mirae Asset 31.6
11.85 1,808 0 0.00
Midcap Fund 29 Jul' 19
Axis Emerging
Opportunities 10.6
13.56 1,408 0 0.00
Fund - Series 2 03 Mar' 17
(1400 Days)
Edelweiss Mid
Cap Fund
9.1
(Formerly 29.39 1,000 9.77 18.27
26 Dec' 07
Edelweiss Mid
and S...
Tata Mid Cap 11.2
153.54 847 10.18 15.80
Growth Fund 01 Jul' 94
BNP Paribas 9.5
35.74 806 7.67 15.75
Mid Cap Fund 02 May' 06
Invesco India 14.1
55.27 756 11.62 17.97
Midcap Fund 19 Apr' 07
Nippon India 11.01 672 6.45 0 0.00

41
 India
Opportunities
27 Sep' 18
Fund - Series
A
Axis Emerging
Opportunities 11.5
14.17 657 11.4 10.47
Fund - Series 1 29 Dec' 16
(1400 Days)
Mahindra
Unnati
2.3
Emerging 10.53 515 0 0.00
30 Jan' 18
Business
Yojana
Nippon India
Capital Builder -10.49
7.80 338 0 0.00
Fund - IV - 10 Nov' 17
Series B
Principal 50.9
10.70 216 0 0.00
Midcap Fund 30 Dec' 19
IDBI Midcap 4.11
11.38 197 3.98 3.60
Fund 25 Jan' 17
Nippon India
Capital Builder 1.65
10.40 151 0 0.00
Fund - IV - 23 Oct' 17
Series A
PGIM India
Midcap 12
20.40 151 5.74 9.04
Opportunities 02 Dec' 13
Fund
Nippon India
Capital Builder -11.64
7.65 145 0 0.00
Fund - IV - 21 Dec' 17
Series
Fund - IV - -5.34
8.85 95 0 0.00
Series C 10 Nov' 17
Sundaram
3.09
Value Fund - 10.92 81 0 0.00
19 May' 17
Series X
Taurus 7.93 67 -10.62 0 0.00
Discovery 18 Jan' 18

42
(Midcap) Fund
Baroda Mid- -5.61
8.80 54 0 0.00
cap Fund 23 Nov' 17
Sundaram
6.31
Value Fund - 47.53 52 10.05 12.01
05 Sep' 94
Series III
Sundaram
-0.46
Value Fund - 9.61 49 6.55 3.52
04 Oct' 10
Series VII
Quant Mid 15.1
17.72 38 9.05 11.74
Cap Fund 05 Feb' 16
Sahara Midcap
-5.44
Fund-Auto 8.51 26 0 0.00
07 Mar' 17
Payout
Sahara Midcap 9.79
59.25 11 8.39 7.63
Fund(G) 26 Feb' 01
FOR 5 YEAR
Fund Name NAV (Rs.) AUM (Cr.) Returns Since Past Avg. Rolling
Inception
HDFC Mid-
Cap 14.7
57.43 23,788 8.97 20.26
Opportunities 25 Jun' 07
Fund
Franklin India 19.1
997.24 7,835 8.12 16.80
Prima Fund 01 Dec' 93
DSP Midcap 14.6
61.74 7,626 10.95 17.58
Fund 14 Nov' 06
Nippon India 21.8
1242.92 7,269 8.42 14.36
Growth Fund 08 Oct' 95
Kotak
12
Emerging 43.60 6,733 11.01 16.65
30 Mar' 07
Equity Fund
L&T Midcap 18.6
142.57 6,391 10.39 17.16
Fund 09 Aug' 04
Sundaram Mid 24.8
499.45 6,178 7.99 18.28
Cap Fund 19 Jul' 02
Axis Midcap 17.4
42.76 4,818 10.88 19.35
Fund 18 Feb' 11

43
UTI Mid Cap 14.1
107.77 3,916 6.58 16.89
Fund 30 Jul' 05
SBI Magnum 14.7
77.28 3,718 7.02 14.94
Midcap Fund 29 Mar' 05
Aditya Birla
21.4
Sun Life 288.93 2,505 6.55 15.81
03 Oct' 02
Midcap Fund
Motilal Oswal
19.4
Midcap 30 29.03 1,986 8.41 12.50
24 Feb' 14
Fund
ICICI
15.9
Prudential 96.98 1,968 6.43 14.25
28 Oct' 04
Midcap Fund
Mirae Asset 31.6
11.85 1,808 0 0.00
Midcap Fund 29 Jul' 19
Axis Emerging
Opportunities 10.6
13.56 1,408 0 0.00
Fund - Series 2 03 Mar' 17
(1400 Days)
Edelweiss Mid
Cap Fund
9.1
(Formerly 29.39 1,000 8.79 19.67
26 Dec' 07
Edelweiss Mid
and S...
Tata Mid Cap 11.2
153.54 847 8.55 15.51
Growth Fund 01 Jul' 94
BNP Paribas 9.5
35.74 806 8.15 15.69
Mid Cap Fund 02 May' 06
Invesco India 14.1
Midcap Fund 55.27 756 9.33 18.42
19 Apr' 07
Nippon India
India 6.45
Opportunities 11.01 672 0 0.00
Fund - Series 27 Sep' 18
A
Axis Emerging
Opportunities 11.5
14.17 657 0 0.00
Fund - Series 1 29 Dec' 16
(1400 Days)

44
 Mahindra
Unnati
2.3
Emerging 10.53 515 0 0.00
30 Jan' 18
Business
Yojana
Nippon India
Capital Builder -10.49
7.80 338 0 0.00
Fund - IV - 10 Nov' 17
Series B
Principal 50.9
10.70 216 0 0.00
Midcap Fund 30 Dec' 19
IDBI Midcap 4.11
11.38 197 0 0.00
Fund 25 Jan' 17
Nippon India
Capital Builder 1.65
10.40 151 0 0.00
Fund - IV - 23 Oct' 17
Series A
PGIM India
Midcap 12
20.40 151 5.28 7.59
Opportunities 02 Dec' 13
Fund
Nippon India
Capital Builder -11.64
7.65 145 0 0.00
Fund - IV - 21 Dec' 17
Series
Fund - IV - -5.34
8.85 95 0 0.00
Series C 10 Nov' 17
Sundaram
3.09
Value Fund - 10.92 81 0 0.00
19 May' 17
Series X
Taurus
-10.62
Discovery 7.93 67 0 0.00
18 Jan' 18
(Midcap) Fund
Baroda Mid- -5.61
8.80 54 0 0.00
cap Fund 23 Nov' 17
Sundaram
6.31
Value Fund - 47.53 52 9.19 10.81
05 Sep' 94
Series III
Sundaram 9.61 49 -0.46 1.81 2.72

45
Value Fund -
04 Oct' 10
Series VII
Quant Mid Cap 15.1
17.72 38 0 0.00
Fund 05 Feb' 16
Sahara Midcap
-5.44
Fund-Auto 8.51 26 0 0.00
07 Mar' 17
Payout
Sahara Midcap 9.79
59.25 11 6.16 7.51
Fund(G) 26 Feb' 01

Comparative performance of DSP Midcap Fund as of January 31, 2020

NIFTY
DSP Midcap Fund MIDCA… ^ NIFTY TR… #

CAGR since Inception 14.65% 11.55% 10.25%

1 Year 21.09% 7.56% 11.84%

3 years 10.70% 6.46% 13.29%

5 Years 10.99% 7.69% 7.67%

Current Value of Rs.  10,000
Rs.  60,969.00 Rs.  42,451.33 Rs.  36,319.43
invested at inception

NAV/Index Value as of 31
Rs.  60.969 Rs.  23,315.68 Rs.  16,790.445
Jan , 2020

46
1 YEAR (PLEASE USE EITHER LINE CHART OR BAR CHART)

VARIUOS LARG CAP MF SCHEMES’ 1 YEAR RETURN COMPARED WITH

BENCHMARK RETURN

11.84

14.65 DSP Midcap Fund

Nifty Midcap Fund
Nifty TR

7.56

3 YEAR

47
 10.7

13.29 DSP Midcap Fund

Nifty Midcap Fund
Nifty TR

6.46

5 YEAR

10.7

13.29 DSP Midcap Fund

Nifty Midcap Fund
Nifty TR

6.46

48
CONCLUSION

49
 CONCLUSION (1 YEAR, 3 YEAR, 5 YEAR, SINCE
INCEPTION) 2 FULL PAGE

The conclusion allows you to have the final say on the issues you have raised in your paper,
to summarize your thoughts, to demonstrate the importance of your ideas, and to propel your
reader to a new view of the subject. It is also your opportunity to make a good final
impression and to end on a positive note.

The following Conclusion are draw on the basis of data analysis and data Interpretation.

 From data interpretation we can say mutual fund is a best investment vehicle for old,
retired, business people as well as youngster and those who want regular returns on
their investment.
 Mutual fund is also better and preferable for those who want their capital
appreciation.
 Both the companies are doing considerable achievement in mutual fund industry.
 There are also so many competitors involved those effect on both companies.
 Many of people do not have invested in mutual fund due to lack of awareness,
although they have money to invest.

50
 Brand plays important role for the investment. People invest in those companies
where they have faith or they are well known with them.
 As the awareness and income is growing the number of mutual fund investors are
also growing.
 Distribution channels are also important for the investment in mutual funds.
Financial advisors are the most preferred channel for the investment in mutual fund.

51
SUGGESTIONS

52
 SUGGESTIONS ( 1 FULL PAGE)

In my study I have found some limitation. For that I can suggest both the company following
suggestions or area of improvement.

 Midcap MFs bank should try to provide better returns to its investors.
 Midcap MFs should try to invest in better securities for better profit.
 Midcap MFs should try to satisfy their customer by better customer service or by
improving customer relationship management.
 Investor should be made fully aware of the concept of mutual fund and all the term and
condition. The most vital problem spotted is of ignorance. Investors should be made
aware of the benefits. Nobody will invest until and unless he is fully convinced.
Investors should be made to realize that ignorance is no longer bliss and what they are
losing by not investing.
 Mutual funds offer a lot of benefits which no other single option could offer. But most of
the people are not even aware of what actually a mutual fund is? They only see it as just
another investment option. So the advisors should try to change their mindset. The
advisors should target for more and more young investors. Young investors as well as
persons at the high of their career would like to go for advisors due to lack of expertise
and time.
 Mutual Fund Company needs to give the training of the individual financial advisor about
the fund/scheme and its objective, because they are the main source of influence the
investors.
 Before making any investment financial advisors should first enquire about the risk
tolerance of the investors/customers, their need and time. By considering these three
things they can take the customers into consideration.

53
BIBLIOGRAPHY

54
 BIBLIOGRAPHY (PROPER FORMAT)

 Annual Report of Midcap Mutual Fund

 Research Methodology, 2004, C.P. KOTHARI, new age international publishers.
 Financial Markets and Service, 2009, E .Gordon &K. Natragan , Himalaya
Publishing House.
 Financial service management, 2014, thakur publication.
 Invest India by Dr.Uma Shashikant
 A guide for mutual funds by Midcap Mutual Fund
 Offer documents of Midcap Mutual Fund magnum mid cap fund

Websites:-

 www.Midcap Mutual Fundmf.com

 www.amfindia.com
 www.mutualfundindia.com
 www.google.com

55