A Study On Mutual Fund: Comparison Between Equity Diversification and Sector Specific Schemes

“A STUDY ON MUTUAL FUND: COMPARISON BETWEEN EQUITY
DIVERSIFICATION AND SECTOR SPECIFIC SCHEMES”
CHAPTER-1
INTRODUCTION OF MUTUAL FUND
1.1 Introduction
A mutual fund is an investment vehicle made up of a pool of moneys collected
from many investors for the purpose of investing in 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. A mutual fund's
portfolio is structured and maintained to match the investment objectives stated in
its prospectus.
Financial institutions, Banks and other Agencies setup of financial intermediaries
is required to mobilize the savings of the society, and investing rationally for
economic development. In our country, India firstly Unit Trust of India was set-up
by the Central Govt. under the UTI Act, 1963 with an objective of mobilizing
savings of middle - lower income groups and providing those opportunities to
acquire property in the form of Equity shares. As growth of UTI took place during
the period when the economy was under a control regime and securities markets
were irrelevant to industrial growth as the financial intuitions were the major
purveyors of long-term finance. Private sector mutual funds have benefited the
investors by providing them more options and better services. There are 42 mutual
funds operating with a wide branch network in our country. The present state of
mutual funds, their performance, profitability and decline of NAVs below issue
prices have been causing concern to the investors. As result of the liberalization
and globalization created a fervent environment in our country and several small
investors participated in the equity of the corporate sector. The investors who
subscribed to equity shares issued at high premium, after abolition of the office of
the Controller of the Capital Issues, have lost their investments as the market
prices of such shares are prevailing at very low rates or not quoted at all. SEBI has
raised the amount of minimum subscription in public issues and shifted to
compulsory trading of securities in dematerialized form through depositories. Due
to the changing present scenario for the investment in various sectors the one of
Acharya Institute of Graduate Studies Page 1

the sectors i.e., investment in the new vista mutual funds. In respect of mutual 2
funds how alternate opportunity of gain in income through investment and to
study the increase in the net asset value.
And there are so many problems of mutual funds such as problems of structure,
problems of investors Problems of return on investment, risk, liquidity, low cost,
investors have not getting sufficient information about investment, investor are
not aware about the right, there is no proper legal frame work for the function of
mutual fund, in the liberalization, privatization, globalization era there is need to
study the problems of mutual fund etc.
A Mutual Fund is a trust that pools the savings of a number of investors who share
a common financial goal. The money collected & invested by the fund manager in
different types of securities depending upon the objective of the scheme. These
could range from shares to debentures to money market instruments. The income
earned through these investments and its unit holders in proportion to the number
of units owned by them (pro rata) shares the capital appreciation realized by the
scheme. Thus, a Mutual Fund is the most suitable investment for the common
person as it offers an opportunity to invest in a diversified, professionally
managed portfolio at a relatively low cost. Anybody with an investible surplus of
as little as a few thousand rupees can invest in Mutual Funds. Each Mutual Fund
scheme has a defined investment objective and strategy.
Fig 1.1 Investment Chain

A mutual fund is the answer to all these situations. It appoints professionally

qualified and experienced staff that manages each of these functions on a fulltime
basis. The large pool of money collected in the fund allows it to hire such staff at a
very low cost to each investor.
In effect, the mutual fund vehicle exploits economies of scale in all three areas -
research, investments and transaction processing. While the concept of individuals
coming together to invest money collectively is not new, the mutual fund in its
present form is a 20th century phenomenon. In fact, mutual funds gained
popularity only after the Second World War. Globally, there are thousands of
firms offering tens of thousands of mutual funds with different investment
objectives. Today, mutual funds collectively manage almost as much as or more
money as compared to banks.
The Securities and Exchange Board of India (Mutual Funds) Regulations, 1996
defines a mutual fund as a „a fund established in the form of a trust to raise money
through the sale of Units to the public or a section of the public under one or more
schemes for investing in securities, including money market instruments‟.
According to the above definition, a mutual fund in India can raise resources
through sale of units to the public. It can be set up in the form of a Trust under the
Indian Trust Act.
Mutual Fund is a trust that pools together the resources of investors to make a
foray into investments in the capital market thereby making the investor to be a
part owner of the assets of the mutual fund. If the value of the mutual fund
investments goes up, the return on them increases and vice versa.
The net income earned on the funds, along with capital appreciation of the
investment, is shared amongst the unit holders in proportion to the units owned by
them. Mutual Fund is therefore an indirect vehicle for the investor investing in
capital markets.
A Mutual fund is an organization (in India this organization must be in the form of
a trust) that pools the savings of a number of investors called as unit holders who
share common goal. The money thus collected is invested by the professional fund
manager’s indifferent types of securities depending upon the objectives of the
scheme.
The return/ loss on investment are shared by the unit holders in proportion to the

number of units owned by them.

1.2 History of Mutual Fund
Global History - Introduced in Belgium in 1822. This form of investment soon
spread to Great Britain and France. Mutual funds became popular in the United
States in the 1920s and continue to be popular since the 1930s, especially open-
end mutual funds. Mutual funds experienced a period of tremendous growth after
World War II, especially in the 1980s and 1990s.
1.3 Mutual Fund Industry in India

The origin of mutual fund industry in India is with the introduction of the concept
of mutual fund by UTI in the year 1963. Though the growth was slow, but it
accelerated from the year 1987 when non-UTI players entered the industry. UTI
remained the only fund till the government allowed public sector banks to start
mutual funds in 1987. Major PSU banks like SBI, Canara Bank, Indian Bank and
Punjab National Bank started offering their products. Mutual fund giants LIC and
GIC also started their own mutual fund subsidiaries. They were all reasonably
successful as equity investments gained popularity during the bull market of the
early nineties.
In the past decade, Indian mutual fund industry had seen dramatic improvements,
both quality wise as well as quantity wise. Before, the monopoly of the market
had seen an ending phase; the Assets under Management (AUM) were Rs. 67bn.
The private sector entry to the fund family raised the AUM to Rs. 470 bn in
March 1993 and till Putting the AUM of the Indian Mutual Funds Industry into
comparison, the total of it is less than the deposits of SBI alone, constitute less
than 11% of the total deposits held by the Indian banking industry.
The main reason of its poor growth is that the mutual fund industry in India is new
in the country. Large sections of Indian investors are yet to be intellectuated with
the con April 2004; it reached the height of 1,540 bn Putting the AUM of the
Indian Mutual Funds Industry into comparison, the total of it is less than the
deposits of SBI alone, constitute less than 11% of the total deposits held by the
Indian banking industry.
The main reason of its poor growth is that the mutual fund industry in India is new
in the country. Large sections of Indian investors are yet to be intellectuated with

the concept. Hence, it is the prime responsibility of all mutual fund companies, to
market the product correctly abreast of selling. Private sector players were
allowed into the industry in 1993 after SEBI was established as the market
regulator. A host of private banks and international fund houses started their
operations and investors could choose from many innovative products. SEBI
brought out comprehensive guidelines for establishment and management of
mutual funds in 1996.
In 2003, the Unit Trust of India, which was not under SEBI regulation, was split
into two parts, UTI Mutual Fund (UTI MF) and a specified undertaking of UTI or
UTI-I. UTI MF was brought under SEBI regulations while UTI-I was kept under
direct government control since its schemes offered guaranteed returns.
1.3.1 Phases
First Phase 1964-87: Unit Trust of India (UTI) was established on 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 crores of assets under management.
Second Phase - 1987-1993 (Entry of Public Sector Funds): Entry of non-UTI
mutual funds. SBI Mutual Fund was the first 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 in
1989 and GIC in 1990. The end of 1993 marked Rs.47,004 as assets under
management.
Third Phase - 1993-2003 (Entry of Private Sector Funds): 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. As at the end of January 2003, there were 33 mutual funds with
total assets of Rs. 1,21,805 crores. The Unit Trust of India with Rs.44,541 crores
of assets under management was way ahead of other mutual funds.
Fourth Phase - Since February 2003: This phase had bitter experience for UTI.
It was bifurcated into two separate entities. One is the Specified Undertaking of
the Unit Trust of India with AUM of Rs.29,835 crores (as on January 2003). 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.
Private sector players were allowed into the industry in 1993 after SEBI was
established as the market regulator. A host of private banks and international fund
houses started their operations and investors could choose from many innovative
products. SEBI brought out comprehensive guidelines for establishment and
management of mutual funds in 1996.
The second is the UTI Mutual Fund Ltd, 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 AUM 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.
Indian Mutual Fund industry’s Average Assets Under Management (AAUM)
stood at ₹ 23.53 Lakh Crore (INR 23.53 Trillion). Average Assets Under
Management (AAUM) of Indian Mutual Fund Industry for the month of April
2020 stood at ₹ 23,52,878 crore. Assets Under Management (AUM) of Indian
Mutual Fund Industry as on April 30, 2020 stood at ₹23,93,486 crore. The AUM
of the Indian MF Industry has grown from ₹ 8.09 trillion as on 30th April, 2010 to
₹23.93 trillion as on 30th April, 2020 about 3-fold increase in a span of 10 years.
The MF Industry’s AUM has grown from ₹ 11.86 trillion as on 30th April, 2015
to

₹23.93 trillion as on 30th April, 2020, more than 2-fold increase in a span of 5
years.
The Industry’s AUM had crossed the milestone of ₹10 Trillion (₹10 Lakh Crore)
for the first time in May 2014 and in a short span of about three years, the AUM
size had increased more than two folds and crossed ₹ 20 trillion (₹20 Lakh Crore)
for the first time in August 2017. The Industry AUM stood at ₹23.93 Trillion ( ₹
23.93 Lakh Crore) as on 30th April, 2020.
The total number of accounts (or folios as per mutual fund parlance) as on April
30, 2020 crossed a landmark of 9 crore and stood at 9.04 crore (90.4 million),
while the number of folios under Equity, Hybrid and Solution Oriented Schemes,
wherein the maximum investment is from retail segment stood at about 8 crores
(80 million).
1.4 Different Types of Mutual Funds

Mutual funds offer one of the most comprehensive, easy and flexible ways to
create a diversified portfolio of investments. There are different types of mutual
funds that offer different options to suit investors diverse risk appetites.
Broadly, any mutual fund will either invest in equities, debt or a mix of both.
Further, they can be open-ended or close-ended mutual fund schemes.
Open-ended funds.
Open-ended funds - In an open-ended mutual fund, an investor can invest or enter
and redeem or exit at any point of time. It does not have a fixed maturity period.
Close-ended funds - Close-ended mutual funds have a fixed maturity date. An
investor can only invest or enter in these types of schemes during the initial period
known as the New Fund Offer or NFO period. His/her investment will
automatically be redeemed on the maturity date. They are listed on stock
exchange(s).
Various types of equity and debt mutual funds available in India:
1.4.1 Equity or growth schemes
These are one of the most popular mutual fund schemes. They allow investors to
participate in stock markets. Though categorised as high risk, these schemes also
have a high return potential in the long run. They are ideal for investors in their
prime earning stage, looking to build a portfolio that gives them superior returns

over the long-term. Normally an equity fund or diversified equity fund as it is

commonly called invests over a range of sectors to distribute the risk.
Equity funds can be further divided into three categories:

Sector-specific funds: These are mutual funds that invest in a specific sector.
These can be sectors like infrastructure, banking, mining, etc. or specific segments
like mid-cap, small-cap or large-cap segments. They are suitable for investors
having a high-risk appetite and have the potential to give high returns.
Index funds: Index funds are ideal for investors who want to invest in equity
mutual funds but at the same time don't want to depend on the fund manager. An
index mutual fund follows the same strategy as the index it is based on.
For example, if an index fund follows the BSE Index as the replicating index and
if it has a 20% weightage in let's say Stock A, then the index fund will also invest
20% of its assets in Stock A. Index funds promise returns in line with the index
they mirror. Further, they also limit the loss to the proportional loss of the index
they follow, making them suitable for investors with a medium risk appetite.
Tax saving funds: These funds offer tax benefits to investors. They invest in
equities and are also called Equity Linked Saving Schemes (ELSS). These types
of schemes have a 3-year lock-in period. The investments in the scheme are
eligible for tax deduction u/s 80C of the Income-Tax Act, 1961.
Money market funds or liquid funds: These funds invest in short-term debt
instruments, looking to give a reasonable return to investors over a short period of
time. These funds are suitable for investors with a low risk appetite who are
looking at parking their surplus funds over a short-term. These are an alternative
to putting money in a savings bank account.
Fixed income or debt mutual funds: These funds invest a majority of the money in
debt - fixed income i.e. fixed coupon bearing instruments like government
securities, bonds, debentures, etc. They have a low- risk-low-return outlook and
are ideal for investors with a low risk appetite looking at generating a steady
income. However, they are subject to credit risk.
Balanced funds: As the name suggests, these are mutual fund schemes that divide

their investments between equity and debt. The allocation may keep changing
based on market risks. They are more suitable for investors who are looking at a
combination of moderate returns with comparatively low risk.
Hybrid / Monthly Income Plans (MIP): These funds are similar to balanced funds
but the proportion of equity assets is lesser compared to balanced funds. Hence,
they are also called marginal equity funds. They are especially suitable for
investors who are retired and want a regular income with comparatively low risk.
Gilt funds: These funds invest only in government securities. They are preferred
by investors who are risk averse and want no credit risk associated with their
investment. However, they are subject to high interest rate risk.
1.5 Theoretical Background of The Topic

Equity Mutual Funds: An equity fund is a mutual fund scheme that invests
predominantly in equity stocks. In the Indian context, as per current SEBI Mutual
Fund Regulations, an equity mutual fund scheme must invest at least 65% of the
scheme’s assets in equities and equity related instruments.
Under the tax regime in India, equity funds enjoy certain tax advantages (such as,
there is no incidence of long-term capital gains tax on equity shares or equity
funds which are held for at least 12 months from the date of acquisition). As per
current Income Tax rules, an "Equity Oriented Fund" means a Mutual Fund
Scheme where the investible funds are invested in equity shares in domestic
companies to the extent of more than 65% of the total proceeds of such fund.
An Equity Fund can be actively managed or passively managed. Index funds and
ETFs are passively managed. Equity mutual funds are principally categorized
according to company size, the investment style of the holdings in the portfolio
and geography. The size of an equity fund is determined by a market
capitalization, while the investment style, reflected in the fund's stock holdings, is
also used to categorize equity mutual funds. Equity funds are also categorized by
whether they are domestic (investing in stocks of only Indian companies) or
international (investing in stocks of overseas companies). These can be broad

market, regional or single-country funds.

Some specialty equity funds target business sectors, such as health care,
commodities and real estate and are known as Sectoral Funds.

1.6 Ideal Investment Vehicle
In many ways, equity funds are ideal investment vehicles for investors that are not
as well-versed in financial investing or do not possess a large amount of capital
with which to invest. Equity funds are practical investments for most people.
The attributes that make equity funds most suitable for small individual investors
are the reduction of risk resulting from a fund's portfolio diversification and the
relatively small amount of capital required to acquire shares of an equity fund. A
large amount of investment capital would be required for an individual investor to
achieve a similar degree of risk reduction through diversification of a portfolio of
direct stock holdings. Pooling small investors' capital allows an equity fund to
diversify effectively without burdening each investor with large capital
requirements.
The price of the equity fund is based on the fund's net asset value (NAV) less its
liabilities. A more diversified fund means that there is less negative effect of an
individual stock's adverse price movement on the overall portfolio and on the
share price of the equity fund.
Equity funds are managed by experienced professional portfolio managers, and
their past performance is a matter of public record. Transparency and reporting
requirements for equity funds are heavily regulated by the federal government.
1.7 A Fund for Everyone

Equity funds are very popular amongst the retail investors among various
categories of mutual fund products. Whether it’s a particular market sector
(technology, financial, pharmaceutical), a specific stock exchange (such as the
BSE or NSE), foreign or domestic markets, income or growth stocks, high or low
risk, or a specific interest group (political, religious, brand), there are equity funds
of every type and characteristic available to match every risk profile and
investment objective that investors may have.
Largecap schemes: These schemes invest mostly in big companies and they are
less risky than other pure equity schemes. Largecap schemes are suitable for
conservative equity investors and offer modest returns.
Smallcap schemes: These schemes invest in small companies. These companies
can be extremely risky, as there will be very little information on them available
in the public domain. However, they can also offer phenomenal return. They are
suitable only for investors with a very high-risk appetite and an investment
horizon of at least seven years.
Midcap schemes: These schemes invest mostly in medium-sized companies.
These companies can be risky as they may or may not realize their full potential.
However, if they succeed, they will become large companies and investors will be
rewarded handsomely. Investors with high risk appetite should bet on these
schemes.
Equity Linked Savings Schemes (ELSS): These are the tax planning mutual fund
schemes meant for investors looking to save taxes under Section 80C of the
Income Tax Act. Investments in these funds qualify for a tax deduction of up to
Rs 1.5 lakh. Investments in ELSS have a lock-in period of three years.
Diversified equity schemes: These schemes invest across market capitalizations,
depending on the market view of the fund manager. Since the portfolio is spread
across different market capitalizations, they are less risky than mid- and small-cap
schemes, but a little riskier than largecap schemes. They are suitable for investors
with moderate risk appetite.
Equity-oriented hybrid funds: Equity-oriented hybrid funds or balanced schemes
invest in a mix of equity (at least 65 per cent) and debt. They are less volatile than
pure equity funds because of this mixed portfolio. The funds are suitable for
novices in the stock markets and very conservative equity investors.
Sector schemes: These schemes invest mostly in a particular sector or along the
lines of a defined theme. Since the investments are concentrated on a single sector
or theme, sector schemes are considered very risky. It is very important to time the
entry into and exit from them as the fortunes of sectors keep changing during
different economic cycles. They are meant for investors with an intimate
knowledge about a particular sector. Investors should invest only a small portion
of the total portfolio in sector funds.
Definition of 'Sector Specific Funds':
Definition: Mutual funds which invest in a particular sector or industry are said to
be sector-specific funds. Since the portfolio of such mutual funds consists mainly
of investment in one particular type of sector, they offer less amount of
diversification and are considered to be risky.
Description: Sector-specific funds are considered to be relatively riskier compared
to a diversified fund. As these funds take exposure in a single sector, the
concentration risk is high. Their performance is aligned with the performance of
the sector in which they are investing. As the exposure is not broad based, it
carries a high degree of risk. This type of funds is normally suitable
for a highly aggressive investor. Some of the sector-specific funds
are mentioned below:
Banking funds: These are sector-specific mutual funds having a portfolio
comprising mainly of equities of different banks. So if in general the banking
sector is performing well, one can expect good returns.
Pharma funds: These are sector-specific mutual funds which have a portfolio
comprising mainly of different pharmaceutical companies.
Technology funds: Sector-specific mutual funds which have a portfolio
comprising mainly of IT companies.
FMCG funds: Sector-specific mutual funds catering to the investments in the fast-
moving commodity goods stocks.
Why to Invest in Sector Mutual Funds?
A sector fund is a type of Mutual Fund that invests in securities of specific sectors
of the economy, such as banking, telecom, FMCG, pharmaceutical, Information
Technology (IT), and infrastructure. In other words, sector funds narrow down
your invested wealth only to the specific industry or sector. For instance, a
banking sector fund can invest in banks and a pharma fund can invest only in
stocks of pharma companies. The fund managers of these funds invest money into
shares of companies which are doing well in the market. The overall objective of
such investment is to invest in those sectors which
have a high growth potential in the near future. Read more at:
https://www.fincash.com/l/best-sector-mutual-funds
The funds can really end up making a huge profit, if the timing of investment is
accurate. One should know when to enter and exit the fund. Investors should
invest in areas of the market where they are confident about or see growth in the
future. The main idea is to tap-in on the growth of a particular industry and sector.
The other advantage of sector funds is its ability to protect you from individual
firm-specific risk. Rather than buying individual stocks, investing in sector funds
would ensure that a company’s bad performance wouldn’t affect your portfolio.
What is the difference between diversified equity scheme and ELSS? Which one
is more secure and profitable?
Diversified equity schemes and ELSS are equity schemes and both diversify
across stocks and sectors. The only difference between a diversified equity
scheme and an ELSS is that the latter offers tax benefits under Section 80C and
comes with a three-year lock- in. Diversified equity funds on the other hand do
not offer any such tax benefits. There is no proven better category. When
investing in mutual funds you should look at the funds’ past performance and
evaluate your investment based on your needs and how the fund will help you
achieve your financial goal.
CHAPTER-2
RESEARCH DESIGN
2.1 Review f Literature
Mutual funds attracted the interests of academicians, researchers and financial
analysts mostly since 1986. A number of articles have been published in financial
dailies like economic times, business line and financial express, periodicals like
capital market, Business India etc., and in professional and research journals.
Literature Review on performance evaluation of mutual fund is enormous.
Various studies have been carried out in India and abroad to evaluate the
performance of mutual funds schemes from time to time. A few research studies
that have influenced substantially in preparing the thesis are discussed below in
this chapter.
Jack Treynor (1965) developed a methodology for performance evaluation of a
mutual fund that is referred to as reward to volatility measure, which is defined as
average excess return on the portfolio. This is followed by Sharpe (1966) reward
to variability measure, which is average excess return on the portfolio divided by
the standard deviation of the portfolio.
Sharpe (1966) developed a composite measure of performance evaluation and
imported superior performance of 11 funds out of 34 during the period 1944-63.
Michael C. Jensen (1967) conducted an empirical study of mutual funds in the
period of 1954-64 for 115 mutual funds. The results indicate that these funds are
not able to predict security prices well enough to 30 outperform a buy the market
and hold policy. The study ignored the gross management expenses to be free.
There was very little evidence that any individual fund was able to do
significantly better than which investors expected from mere random chance.
Jensen (1968) developed a classic study; an absolute measure of performance
based upon the Capital Asset Pricing Model and reported that mutual funds did
not appear to achieve abnormal performance when transaction costs were taken
into account.
Carlsen (1990) evaluated the risk-adjusted performance and emphasized that the
conclusions drawn from calculations of return depend on the time period, type of
fund and the choice of benchmark. Carlsen essentially recalculated the Jensen and
Shape results using annual data for 82 common stock funds over the 1948-67
periods. The results contradicted both Sharpe and Jensen measures.
Fama (2002) developed a methodology for evaluating investment performance of
managed portfolios and suggested that the overall performance could be broken
down into several components.
John McDonald (2014) examined the relationship between the stated fund
objectives and their risks and return attributes. The study concludes that, on an
average the fund managers appeared to keep their portfolios within the stated risk.
Some funds in the lower risk group possessed higher risk than funds in the riskier
group.
James R.F. Guy (2018) evaluated the risk-adjusted performance of UK
investment trusts through the application of Sharpe and Jensen measures. The
study concludes that no trust had exhibited superior performance compared to the
London Stock Exchange Index.
2.2 Statement of The Problem

A study on mutual fund: comparison between equity diversification and sector
specific schemes.
2.3 Objectives of The Study

The basic objectives of the study are: To find out the major dissimilarity among
the return of different Equity diversified scheme and Sector specific scheme in
Mutual Fund industry. To find out if significant differences in returns of above
these two schemes exist or not. To study the difference in returns of Mutual funds
over different holding periods. To study mutual fund industry and understand it’s
functioning.
2.4 Scope of The Study

Scope of the Study is limited to only Equity Funds and Sector Specific Funds in
Mutual Funds Industry.
2.5 Operational Definition of The Concepts
Equity Funds: An equity fund is a mutual fund scheme that invests
predominantly in equity stocks. In the Indian context, as per current SEBI Mutual
Fund Regulations, an equity mutual fund scheme must invest at least 65% of the
scheme’s assets in equities and equity related instruments.
Sector Specific Funds: Mutual funds which invest in a particular sector or
industry are said to be sector-specific funds. Since the portfolio of such mutual
funds consists mainly of investment in one particular type of sector, they offer less
amount of diversification and are considered to be risky. Sector-specific funds are
considered to be relatively riskier compared to a diversified fund. As these funds
take exposure in a single sector, the concentration risk is high.
2.6 Methodology
Methodology is a way to solve the research problem in a systematic manner. It
may understand as a science of studying how the research is done significantly.
The design used for the study is descriptive method.
2.7 Data Collection

Secondary Data: Books, Magazines, Newspapers, Internet etc.
2.8 Sampling
This project has been based on the convenience sampling method.
2.9 Plan of Analysis
As we have been given only 45 days for the Overall project Preparation, we have
the lack of time which may result into the overall collection of the Information.
2.10 Limitations of The Study
 Limited time period

 The study material was not readily available.
 All the secondary data available may not be sufficient.
The project was limited to a period and is done purely for the academic purpose.
CHAPTER-3
PROFILE OF THE ORGANISATION
3.1 Mutual Funds in India
The first introduction of a mutual fund in India occurred in 1963, when the
Government of India launched Unit Trust of India (UTI). UTI enjoyed a
monopoly in the Indian mutual fund market until 1987, when a host of other
government-controlled Indian financial companies established their own funds,
including State Bank of India, Canara Bank, and Punjab National Bank. This
market was made open to private players in 1993, as a result of the historic
constitutional amendments brought forward by the then Congress-led government
under the existing regime of Liberalization, Privatization and Globalization
(LPG). The first private sector fund to operate in India was Kothari Pioneer,
which later merged with Franklin Templeton. In 1996, SEBI, the regulator of
mutual funds in India, formulated the Mutual Fund Regulation which is a
comprehensive regulatory framework.
Mutual funds are an under tapped market in India.
Deposit being available in the market less than 10% of Indian households have
invested in mutual funds. A recent report on Mutual Fund Investments in India
published by research and analytics firm, Boston Analytics, suggests investors are
holding back from putting their money into mutual funds due to their perceived
high risk and a lack of information on how mutual funds work. There are 46
Mutual Funds as of June 2013.
The primary reason for not investing appears to be correlated with city size.
Among respondents with a high savings rate, close to 40% of those who live in
metros and Tier I cities considered such investments to be very risky, whereas
33% of those in Tier II cities said they did not know how or where to invest in
such assets.
Mutual fund investments are sourced both from institutions (companies) and
individuals. Since January 2013, institutional investors have moved to investing
directly with the mutual funds since doing so saves on the expense ratio incurred.
Individual investors are, however, served mostly by Investment advisor and
banks. Since 2009, online platforms for investing in Mutual funds have also
evolved.
3.2 No. Of Amc’s In India
 ABN Amro Asset Management co. Ltd.
 Benchmark Asset Management co. Ltd.
 Birla Asset Management co. Ltd
 BOB Asset Management co. Ltd
 Canbank Asset Management co. Ltd
 Chola Asset Management co. Ltd
 Deutsche Asset Management co. Ltd
 DSP Asset Management co. Ltd
 Escorts Asset Management co. Ltd
 Fidelity Asset Management co. Ltd
 Franklin Templeton Investments
 HDFC Asset Management co. Ltd
 HSBC Asset Management co. Ltd
 ING Vysya Asset Management co. Ltd
 JM Financial Asset Management co. Ltd
 Kotak Mahindra Asset Management co. Ltd

 LIC Asset Management co. Ltd
 Morgan Stanley Asset Management co. Ltd
 Principal Asset Management co. Ltd
 Prudential ICICI Asset Management co. Ltd
 Reliance Asset Management co. Ltd
 Sahara Asset Management co. Ltd
 SBI Asset Management co. Ltd
 Standard Chartered Asset Management co. Ltd
 Sundaram Asset Management co. Ltd
 Tata Asset Management co. Ltd
 UTI Asset Management co. Ltd
3.3 Association of Mutual Funds in India (Amfi)
With the increase in mutual fund players in India, a need for mutual fund
association in India was generated to function as a non-profit organization.
Association of Mutual Funds in India (AMFI) was incorporated on 22nd August,
1995.
AMFI is an apex body of all Asset Management Companies (AMC) which has
been
registered with SEBI. Till date all the AMCs are that have launched mutual fund
schemes are its members. It functions under the supervision and guidelines of its
Board of Directors.
Association of Mutual Funds India has brought down the Indian Mutual Fund
Industry to a professional and healthy market with ethical lines enhancing and
maintaining standards.
3.4 The Objectives of Association of Mutual Funds in India
The Association of Mutual Funds of India works with 30 registered AMCs of the
country. It has certain defined objectives which juxtaposes the guidelines of its
Board of Directors. The objectives are as follows:
This mutual fund association of India maintains high professional and ethical
standards in all areas of operation of the industry. It also recommends and
promotes the top-class business practices and code of conduct which is followed
by members and related people engaged in the activities of mutual fund and asset
management. The agencies who are by any means connected or involved in the
field of capital markets and financial services also involved in this code of
conduct of the association.
About Mutual Fund: A mutual fund is a type of professionally managed collective
investment scheme that pools money from many investors to purchase securities.
While there is no legal definition of the term mutual fund, it is most commonly
applied only to those collective investment vehicles that are regulated and sold to
the general public. They are sometimes referred to as "investment companies" or
"registered investment companies". Most mutual funds are open-ended, meaning
stockholders can buy or sell shares of the fund at any time by redeeming them
from the fund itself, rather than on an exchange.
In the India, mutual funds must be registered with the Securities and Exchange
Commission, overseen by a board of directors (or board of trustees if organized as
a trust rather than a corporation or partnership) and managed by a registered
investment adviser. Mutual funds, like other registered investment companies, are
also subject to an extensive and detailed regulatory regime set forth in the
Investment Company Act of 1940. Mutual funds are not taxed on their income and
profits if they comply with certain requirements under the Indian Internal Revenue
Code.
Mutual funds have both advantages and disadvantages compared to direct
investing in individual securities. They have a long history in the India. Today
they play an important role in household finances, most notably in retirement
planning.
Mutual funds are generally classified by their principal investments.

The four main categories of funds are money market funds, bond or fixed income
funds, stock or equity funds and hybrid funds. Funds may also be categorized as
index or actively managed.
Investors in a mutual fund pay the fund’s expenses, which reduce the fund's
returns and performance. There is controversy about the level of these expenses. A
single mutual fund may give investors a choice of different combinations of
expenses (which may include sales commissions or loads) by offering several
different types of share classes.
Structure: In the India, a mutual fund is registered with the Securities and
Exchange Commission (SEC) and is overseen by a board of directors (if
organized as a corporation) or board of trustees (if organized as a trust). The board
is charged with ensuring that the fund is managed in the best interests of the fund's
investors and with hiring the fund manager and other service providers to the
fund.
The fund manager, also known as the fund sponsor or fund management
company, trades (buys and sells) the fund's investments in accordance with the
fund's investment objective. A fund manager must be a registered investment
advisor. Funds that are managed by the same fund manager and that have the
same brand name are known as a fund family or fund complex.
Mutual funds are not taxed on their income and profits as long as they comply
with requirements established in the Indian Internal Revenue Code. Specifically,
they must diversify their investments, limit ownership of voting securities,
distribute a high percentage of their income and capital gains (net of capital
losses) to their investors annually, and earn most of the income by investing in
securities and currencies.
Mutual funds pass taxable income on to their investors by paying out dividends
and capital gains at least annually. The characterization of that income is
unchanged as it passes through to the shareholders. For example, mutual fund
distributions of dividend income are reported as dividend income by the investor.
There is an exception: net losses incurred by a mutual fund are not distributed or
passed through to fund investors but are retained by the fund to be able to offset
future gains.
Mutual funds may invest in many kinds of securities. The types of securities that a
particular fund may invest in are set forth in the fund's prospectus, which
describes the fund's investment objective, investment approach and permitted
investments. The investment objective describes the type of income that the fund
seeks. For example, a capital appreciation fund generally looks to earn most of its
returns from increases in the prices of the securities it holds, rather than from
dividend or interest income. The investment approach describes the criteria that
the fund manager uses to select investments for the fund. A mutual fund's
investment portfolio is continually monitored by the fund's portfolio manager or
managers.
3.4 Advantages and disadvantages

Mutual funds have advantages compared to direct investing in individual
securities. These include:
Increased diversification: A fund must hold many securities. Diversifying reduces
risks compared to holding a single stock, bond, other available instruments.
Daily liquidity: This concept applies only to open-end funds. Shareholders may
trade their holdings with the fund manager at the close of a trading day based on
the closing net asset value of the fund's holdings. However, there may be fees
and restrictions as stated in the fund prospectus. For holders of individual stocks,
bonds, closed-end funds, ETFs, and other available instruments, there may not be
a buyer/seller for that instrument every day, making such investments less liquid.
Professional investment management: A highly variable aspect of a fund
discussed in the prospectus. Actively managed funds may have large staffs of
analysts who actively trade the fund holdings. Management of an index fund may
just passively re-balance holdings to match a market index like the Standard and
Poors 500 Index.
Ease of comparison: Since mutual funds are available from many providers, it is
generally easy to find similar funds and compare features such as expenses.
Mutual funds have disadvantages as well, which include:
 Fees
 Less control over timing of recognition of gains
 Less predictable income
 No opportunity to customize
3.5 Types
There are 3 principal types of mutual funds in the India: open-end funds, unit
investment trusts (UITs); and closed-end funds.
Exchange-traded funds (ETFs) are open-end funds or unit investment trusts that
trade on an exchange; they have gained in popularity recently. While the term
"mutual fund" may refer to all three types of registered investment companies, it is
more commonly used to refer exclusively to the open-end type.
Open-end funds: Open-end mutual funds must be willing to buy back their shares
from their investors at the end of every business day at the net asset value
computed that day. Most open-end funds also sell shares to the public every
business day; these shares are also priced at net asset value. A professional
investment manager oversees the portfolio, buying and selling securities as
appropriate. The total investment in the fund will vary based on share purchases,
share redemptions and fluctuation in market valuation. There is no legal limit on
the number of shares that can be issued.
Open-end funds are the most common type of mutual fund. At the end of 2011,
there were 7,581 open-end mutual funds in the India with combined assets of
$11.6 trillion.
Closed-end funds generally issue shares to the public only once, when they are
created through an initial public offering. Their shares are then listed for trading
on a stock exchange. Investors who no longer wish to invest in the fund cannot
sell their shares back to the fund (as they can with an open-end fund). Instead,
they must sell their shares to another investor in the market; the price they receive
may be significantly different from net asset value. It may be at a "premium" to
net asset value (meaning that it is higher than net asset value) or, more commonly,
at a "discount" to net asset value (meaning that it is lower than net asset value). A
professional investment manager oversees the portfolio, buying and selling
securities as appropriate.
At the end of 2011, there were 634 closed-end funds in the India with combined
assets of $239 billion.
Unit investment trusts: Unit investment trusts or UITs issue shares to the public
only once, when they are created. UITs generally have a limited life span,
established at creation. Investors can redeem shares directly with the fund at any
time (as with an open-end fund) or wait to redeem upon termination of the trust.
Less commonly, they can sell their shares in the open market.
Unit investment trusts do not have a professional investment manager. Their
portfolio of securities is established at the creation of the UIT and does not
change.
At the end of 2011, there were 6,022 UITs in the India with combined assets of
$60 billion.
Exchange-traded funds: A relatively recent innovation, the exchange-traded fund
or ETF is often structured as an open-end investment company, though ETFs may
also be structured as unit investment trusts, partnerships, investments trust, grantor
trusts or bonds (as an exchange-traded note). Most ETFs are index funds that
combine characteristics of both closed-end funds and open-end funds. Ideally,
ETFs are traded throughout the day on a stock exchange at a price that is close to
net asset value of the ETF holdings. ETF shares may be created or liquidated
during the trading day by the fund manager working with specialist and
institutions that profit from arbitrage trading the slight differences between the
ETF trading price and the price of the ETF holdings.
Indian Financial Market: In today’s era investor invest their funds after basic
analysis. The basic function of financial market is to facilitate the transfer of funds
from surplus sectors that is from (lenders) to deficit sectors (borrowers). If we
look at the financial cycle then we can say that households make their savings,
which is provided to industrial sectors, which earn profit and finally this profit
will go to the households in the form of interest and dividend.
3.6 About the Major Companies in the Industry
The concept of mutual funds in India dates back to the year 1963. The era between
1963 and 1987 marked the existence of only one mutual fund company in India
with Rs. 67 bn assets under management (AUM), by the end of its monopoly era,
the Unit Trust of India (UTI). By the end of the 80s decade, few other mutual fund
companies in India took their position in mutual fund market. The new entries of
mutual fund companies in India were SBI Mutual Fund, Canbank Mutual Fund,
Punjab National Bank Mutual Fund, Indian Bank Mutual Fund, Bank of India
Mutual Fund. The succeeding decade showed a new horizon in Indian mutual
fund industry. By the end of 1993, the total AUM of the industry was Rs. 470.04
bn. The private sector funds started penetrating the fund families. In the same year
the first Mutual Fund Regulations came into existence with re- registering all
mutual funds except UTI. The regulations were further given a revised shape in
1996. Kothari Pioneer was the first private sector mutual fund company in India
which has now merged with Franklin Templeton. Just after ten years with private
sector players penetration, the total assets rose up to Rs. 1218.05 bn. Today there
are 33 mutual fund companies in India.
Major Mutual Fund Companies in India –
ABN AMRO Mutual Fund: ABN AMRO Mutual Fund was setup on April 15,
2004 with ABN AMRO Trustee (India) Pvt. Ltd. as the Trustee Company. The
AMC, ABN AMRO Asset Management (India) Ltd. was incorporated on
November 4, 2003. Deutsche Bank A G is the custodian of ABN AMRO Mutual
Fund.
Birla Sun Life Mutual Fund: Birla Sun Life Mutual Fund is the joint venture of
Aditya Birla Group and Sun Life Financial. Sun Life Financial is a global
organization evolved in 1871 and is being represented in Canada, the US, the
Philippines, Japan, Indonesia and Bermuda apart from India. Birla Sun Life
Mutual Fund follows a conservative long-term approach to investment. Recently it
crossed AUM of Rs. 10,000 crores.
Bank of Baroda Mutual Fund (BOB Mutual Fund): Bank of Baroda Mutual Fund
or BOB Mutual Fund was setup on October 30, 1992 under the sponsorship of
Bank of Baroda. BOB Asset Management Company Limited is the AMC of BOB
Mutual Fund and was incorporated on November 5, 1992. Deutsche Bank AG is
the custodian.
HDFC Mutual Fund: HDFC Mutual Fund was setup on June 30, 2000 with two
sponsorers namely Housing Development Finance Corporation Limited and
Standard Life Investments Limited.
HSBC Mutual Fund: HSBC Mutual Fund was setup on May 27, 2002 with HSBC
Securities and Capital Markets (India) Private Limited as the sponsor. Board of
Trustees, HSBC Mutual Fund acts as the Trustee Company of HSBC Mutual
Fund.
ING Vysya Mutual Fund: ING Vysya Mutual Fund was setup on February 11,
1999 with the same named Trustee Company. It is a joint venture of Vysya and
ING. The AMC, ING Investment Management (India)Pvt.Ltd. was incorporated
on April 6,1998.
Prudential ICICI Mutual Fund: The mutual fund of ICICI is a joint venture with
Prudential Plc. of America, one of the largest life insurance companies in the US
of A. Prudential ICICI Mutual Fund was setup on 13th of October, 1993 with two
sponsorers, Prudential Plc. and ICICI Ltd. The Trustee Company formed is
Prudential ICICI Trust Ltd. and the AMC is Prudential ICICI Asset Management
Company Limited incorporated on 22nd of June, 1993.
Sahara Mutual Fund: Sahara Mutual Fund was set up on July 18, 1996 with
Sahara India Financial Corporation Ltd. as the sponsor. Sahara Asset Management
Company Private Limited incorporated on August 31, 1995 works as the AMC of
Sahara Mutual Fund. The paid-up capital of the AMC stands at Rs 25.8 crore.
State Bank of India Mutual Fund: State Bank of India Mutual Fund is the first
Bank sponsored Mutual Fund to launch offshor fund, the India Magnum Fund
with a corpus of Rs. 225 cr. approximately. Today it is the largest Bank sponsored
Mutual Fund in India. They have already launched 35 Schemes out of which 15
have already yielded handsome returns to investors. State Bank of India Mutual
Fund has more than Rs. 5,500 Crores as AUM. Now it has an investor base of
over 8 Lakhs spread over 18 schemes.
Tata Mutual Fund: Tata Mutual Fund (TMF) is a Trust under the Indian Trust Act,
1882. The sponsorers for Tata Mutual Fund are Tata Sons Ltd., and Tata
Investment Corporation Ltd. The investment manager is Tata Asset Management
Limited and its Tata Trustee Company Pvt. Limited. Tata Asset Management
Limited's is one of the fastest in the country with more than Rs. 7,703 crores (as
on April 30, 2005) of AUM.
Kotak Mahindra Mutual Fund: Kotak Mahindra Asset Management Company
(KMAMC) is a subsidiary of KMBL. It is presently having more than 1, 99,818
investors in its various schemes. KMAMC started its operations in December
1998. Kotak Mahindra Mutual Fund offers schemes catering to investors with
varying risk - return profiles. It was the first company to launch dedicated gilt
scheme investing only in government securities.
Unit Trust of India Mutual Fund: UTI Asset Management Company Private
Limited, established in Jan 14, 2003, manages the UTI Mutual Fund with the
support of UTI Trustee Company Private Limited. UTI Asset Management
Company presently manages a corpus of over Rs.20000 Crore. The sponsors of
UTI Mutual Fund are Bank of Baroda (BOB), Punjab National Bank (PNB), State
Bank of India (SBI), and Life Insurance Corporation of India (LIC).
The schemes of UTI Mutual Fund are Liquid Funds, Income Funds, Asset
Management Funds, Index Funds, Equity Funds and Balance Funds.
Reliance Mutual Fund: Reliance Mutual Fund (RMF) was established as trust
under Indian Trusts Act, 1882. The sponsor of RMF is Reliance Capital Limited
and Reliance Capital Trustee Co. Limited is the Trustee. It was registered on June
30, 1995 as Reliance Capital Mutual Fund which was changed on March 11, 2004.
Reliance Mutual Fund was formed for launching of various schemes under which
units are issued to the Public with a view to contribute to the capital market and to
provide investors the opportunities to make investments in diversified securities.
Standard Chartered Mutual Fund: Standard Chartered Mutual Fund was set up on
March 13, 2000 sponsored by Standard Chartered Bank. The Trustee is Standard
Chartered Trustee Company Pvt. Ltd. Standard Chartered Asset Management
Company Pvt. Ltd. is the AMC which was incorporated with SEBI on December
20, 1999.
Franklin Templeton India Mutual Fund: The group, Franklin Templeton
Investments is a California (USA) based company with a global AUM of US$
409.2 bn. (as of April 30, 2005). It is one of the largest financial services groups in
the world. Investors can buy or sell the Mutual Fund through their financial
advisor or through mail or through their website. They have Open end Diversified
Equity schemes, Open end Sector Equity schemes, Open end Hybrid schemes,
Open end Tax Saving schemes, Open end Income and Liquid schemes, closed end
Income schemes and open-end Fund of Funds schemes to offer.
Morgan Stanley Mutual Fund India: Morgan Stanley is a worldwide financial
services company and its leading in the market in securities, investment
management and credit services. Morgan Stanley Investment Management
(MISM) was established in the year 1975. It provides customized asset
management services and products to governments, corporations, pension funds
and non- profit organizations. Its services are also extended to high net worth
individuals and retail investors. In India it is known as Morgan Stanley Investment
Management Private Limited (MSIM India) and its AMC is Morgan Stanley
Mutual Fund (MSMF). This is the first close end diversified equity scheme
serving the needs of Indian retail investors focusing on a long-term capital
appreciation.
Escorts Mutual Fund: Escorts Mutual Fund was setup on April 15, 1996 with
Excorts Finance Limited as its sponsor. The Trustee Company is Escorts
Investment Trust Limited. Its AMC was incorporated on December 1, 1995 with
the name Escorts Asset Management Limited.
Alliance Capital Mutual Fund: Alliance Capital Mutual Fund was setup on
December 30, 1994 with Alliance Capital Management Corp. of Delaware (USA)
as sponsored. The Trustee is ACAM Trust Company Pvt. Ltd. and AMC, the
Alliance Capital Asset Management India (Pvt) Ltd. with the corporate office in
Mumbai.
Benchmark Mutual Fund: Benchmark Mutual Fund was setup on June 12, 2001
with Niche Financial Services Pvt. Ltd. as the sponsored and Benchmark Trustee
Company Pvt. Ltd. as the Trustee Company. Incorporated on October 16, 2000
and headquartered in Mumbai, Benchmark Asset Management Company Pvt. Ltd.
is the AMC.
Can bank Mutual Fund: Canbank Mutual Fund was setup on December 19, 1987
with Canara Bank acting as the sponsor. Canbank Investment Management
Services Ltd. incorporated on March 2, 1993 is the AMC. The Corporate Office of
the AMC is in Mumbai.
Chola Mutual Fund: Chola Mutual Fund under the sponsorship of Cholamandalam
Investment & Finance Company Ltd. was setup on January 3, 1997.
Cholamandalam Trustee Co. Ltd. is the Trustee Company and AMC is
Cholamandalam AMC Limited.
LIC Mutual Fund: Life Insurance Corporation of India set up LIC Mutual Fund on
19th June 1989. It contributed Rs. 2 Crores towards the corpus of the Fund. LIC
Mutual Fund was constituted as a Trust in accordance with the provisions of the
Indian Trust Act, 1882.The Company started its business on 29th April 1994. The
Trustees of LIC Mutual Fund have appointed Jeevan Bima Sahayog Asset
Management Company Ltd as the Investment Managers for LIC Mutual Fund.
GIC Mutual Fund: GIC Mutual Fund, sponsored by General Insurance
Corporation of India (GIC), a Government of India undertaking and the four
Public Sector General Insurance Companies, viz. National Insurance Co. Ltd
(NIC), The New India Assurance Co. Ltd. (NIA), The Oriental Insurance Co. Ltd
(OIC) and United India Insurance Co. Ltd. (UII) and is constituted as a Trust in
accordance with the provisions of the Indian Trusts Act, 1882.
CHAPTER -4
DATA ANALYSIS AND INTERPRETATION
4.1 Compare HDFC Equity Fund with others sector specific funds
1 Year Annualized Returns
HDFC Equity Funds = -5.95%
Sector Name of the Fund 1 Years
Annualized
Returns
Sector Specific Funds DSP BlackRock Natural Resources & -28.5%
Energy Fund
Sector Specific Funds Aditya Birla Sun Life India GenNext -12.2%
Fun
Sector Specific Funds ICICI Prudential Technology Fund -11.5%
Sector Specific Funds Invesco India Infrastructure Fund -10.4%
Sector Specific Funds UTI Transportation and Logistics -28.1%

Fund
Sector Specific Funds Nippon India Pharma Fund 30.3%
Sector Specific Funds Franklin Build India Fund -32.1%
Sector Specific Funds SBI Banking and Financial Services -33.5%

Fund
Sector Specific Funds Tata Banking and Financial Services -28.4%
Fund
Sector Specific Funds LIC MF Infrastructure Fund -26.4%
Average -18.08%
Table 4.1 Compare HDFC Equity Fund with others sector specific funds 1
Year Annualized Returns
Analysis:
Chart
interpretation
In 1 Years Return
HDFC Equity Funds = -5.95%
Sector Specific Funds (Average) = -18.08%
Hence, HDFC Equity Funds better returns compare to Sector Specific Funds.
0.00%
-2.00% HDFC Equity Sector Specific
Funds Funds
-4.00%
(Average)
-6.00% -
-8.00% 5.95%
-
10.00%
-
12.00%
-
14.00% -
18.08%
-
16.00%
-
18.00%
-
20.00%
HDFC Equity Funds = 8.53%
Sector Name of the Fund 3 Years Annualized

Returns
Sector Specific Funds DSP BlackRock Natural Resource -8.2%
New Energy Fund
Sector Specific Funds Aditya Birla Sun Life India Gen Fund 2.2%
Sector Specific Funds ICICI Prudential Technology Fund 8.9%
Sector Specific Funds UTI Transportation and Logistics Fu -14.0%

Sector Specific Funds Franklin Build India Fund -7.3%
Sector Specific Funds SBI Banking and Financial Serv -1.6%

Fund
Sector Specific Funds Tata Banking and Financial Serv Fund -1.7%
Average -1.47%
In 3 Years Returns
Sector Specific Funds (Average) = -1.47%
8.53
9.00% %
8.00%
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
- HDFC Equity Sector Specific
Funds Funds (Aver-
1.00% 1a.g4e7)%
-
2.00%
Sector Name of the Fund 3 Years Annualized

Returns
Sector Specific Funds DSP BlackRock Natural Resources 5.3%
& New Energy Fund
Sector Specific Funds Aditya Birla Sun Life India 7.1%
GenNext Fund
Sector Specific Funds ICICI Prudential Technology Fund 5.2%
Sector Specific Funds UTI Transportation and Logistics -4.2%
Fund
Sector Specific Funds Franklin Build India Fund 1.1%
Sector Specific Funds SBI Banking and Financial Services 6.3%
Fund
Sector Specific Funds Tata Banking and Financial Services 7.3%
Fund
Average 3.13%
In 5 Years Returns
Sector Specific Funds (Average) = 3.13%
8.17
9.00 %
%
8.00
%
7.00
% 3.13
6.00 %
%
5.00
%
4.00
% HDFC Equity Sector Specific
3.00 Funds Funds
% (Average)
2.00
%
1.00
%
0.00
%
4.2 Compare HDFC Mid Cap Opportunities Fund with others
sector specific funds
1 Year Annualized 3 Year Annualized 5 Year Annualized
Returns Returns Returns
HDFC Mid Cap -10.49% 4.90% 9.88%

Opportunities Fund
Top 10 Sector Specific -18.08% -1.47% 3.13%
Funds (Average)
Table 4.2 Compare HDFC Mid Cap Opportunities Fund with others sector
specific funds
Analysis: From the above table 4.2, we can see that the return of HDFC mid cap
opportunities fund for the 1st year is -10.49%, 3rd year is 4.90% and 5th year is
9.88%. whereas, the return of sector specific fund (average) in the 1 st year is
-18.08%, 3rd year is -1.47% and 5th year is 3.13%.
9.88%
10.00%
4.90%
5.00% 3.13%
0.00% HDFC Mid Cap

1 Year 3 Y-e1a.4r 5 Year Opportunities Fund
-5.00% Annualized 7% Annualized
Returns Annualized Returns Top 10 Sector Specific
Returns Funds (Average)
-10.00%
-10.49%
-15.00%
-20.00% -18.08%
Graph 4.2 Compare HDFC Mid Cap Opportunities Fund with others sector
specific funds
Interpretation: From the above graph 4.2, we can see that the return of sector
specific funds (average) is less performing than the HDFC mid cap opportunities
fund. Whereas in, 1st year HDFC mid cap opportunities fund return is -10.49% and
sector specific fund (average) return is -18.08%, in 3rd year HDFC mid cap
opportunities fund return is 4.90% and sector specific fund (average) return is
-1.47% and in 5th year HDFC mid cap opportunities fund return is 9.88% and
sector specific fund (average) return is 3.13%. hence, we can say that HDFC mid
cap opportunities fund is performing better than the sector specific fund (average).
4.3 Compare Aditya Birla Sun Life Frontline Equity Fund with
others sector specific funds
1 Year Annualized 3 Year Annualized 5 Year
Returns Returns Annualized
Returns
Aditya Birla Sun Life -4.91% 6.30% 9.14%
Frontline Equity Fund
Funds (Average)
Table 4.3 Compare Aditya Birla Sun Life Frontline Equity Fund with others
Analysis: from the above table 4.3, we can see that the return of Aditya Birla sun
life frontline equity fund for the 1 st year is -4.91%, 3rd year is 6.30 and 5th year is
9.14
10.00 6.30 %
% %
5.00 3.13
% %
0.00% Aditya Birla Sun Life
1 Year 3 Y-e1a.4r 5 Year Frontline Equity
-5.00%Annualized 7% Annualize Fund
-R4e.9t1urns% Annualized d Returns
- Top 10 Sector
Returns
10.00% Specific Funds
(Average)
- -
15.00% 18.08%
-
20.00%
Graph 4.3 Compare Aditya Birla Sun Life Frontline Equity Fund with others
Interpretation: from the above graph 4.3, we can see that the return of sector
specific funds (average) is less performing than the Aditya Birla sun life frontline
equity fund. Whereas in, 1st year Aditya Birla sun life frontline equity fund return
is -4.91% and sector specific fund (average) return is -18.08%, in 3rd year Aditya
Birla sun life frontline equity fund return is 6.30% and sector specific fund
(average) return is -1.47% and in 5th year Aditya Birla sun life frontline equity
fund return is 9.14% and sector specific fund (average) return is 3.13%. hence,
Aditya Birla sun life frontline equity fund is performing better than the sector
specific fund (average). 4.4 Compare Kotak Standard Multicap Fund
with others sector specific funds
1 Year 3 Year 5 Year Annualized

Annualized Annualized Returns
Returns Returns
Kotak Standard Multicap Fund -2.19% 8.85% 12.40%
Top 10 Sector Specific Funds -18.08% -1.47% 3.13%
(Average)
Table 4.4 Compare Kotak Standard Multicap Fund with others sector
specific funds
Analysis: From the above table 4.4, we can see that the return of Kotak standard
multi cap fund for the 1st year is -2.19%, 3rd year is 8.85% and 5th year is 12.40%.
whereas, the return of sector specific fund (average) in the 1 st year is -18.08%, 3rd
year is -1.47% and 5th year is 3.13%.
15.00% 12.40%
8.85%
10.00%
3.13%
5.00% Kotak Standard Multicap
0.00% Fund
-21.1Y9e 3 Y- 5 Year Top 10 Sector Specific
-5.00% %ar e1a.4r7% Annualized Funds (Average)
-10.00% Annualized Annualized Returns
Returns Returns
-15.00%
-18.08%
-20.00%
Graph 4.4 Compare Kotak Standard Multicap Fund with others sector
specific funds
specific funds (average) is less performing than the Kotak standard multi cap
fund. Whereas in, 1st year Kotak standard multi cap fund return is -2.19% and
sector specific fund ( average ) return is -18.08% , in 3 rd year Kotak standard
multi cap fund return is 8.85% and sector specific fund (average) return is -1.47%
and in 5th year Kotak standard multi cap fund return is 12.40% and sector specific
fund (average) return is 3.13%. hence, we can say that Kotak standard multi cap
fund is performing better than the sector specific fund (average).
4.5 Compare SBI Equity Hybrid Fund with others sector specific
funds
Returns
SBI Equity Hybrid 1.92% 9.24% 11.43%
Fund
Top 10 Sector -18.08% -1.47% 3.13%
Specific Funds
(Average)
Table 4.5 Compare SBI Equity Hybrid Fund with others sector specific funds
Analysis: From the above table 4.5, we can see that the return of SBI equity
hybrid fund for the 1st year is 1.92%, 3rd year is 9.24% and 5th year is 11.43%.
15.00% 11.43%
9.24%
10.00%
1.92% 3.13%
5.00% SBI Equity Hybrid Fund
0.00%
1 Year 3 Y-e1a.4r 5 Year Top 10 Sector Specific
-5.00%Annualized 7% Annualized Funds (Average)
Returns
-10.00% Annualized Returns
Returns
-15.00%
-20.00%-18.08%
Graph 4.5 Compare SBI Equity Hybrid Fund with others sector specific
funds
specific funds (average) is less performing than the SBI equity hybrid fund.
Whereas in, 1st year SBI equity hybrid fund return is 1.92% and sector specific
fund (average) return is -18.08% , in 3rd year SBI equity hybrid fund return is
9.24% and sector specific fund ( average ) return is -1.47% and in 5 th year SBI
equity hybrid fund return is 11.43% and sector specific fund (average) return is
3.13%. hence, we can say that SBI equity hybrid fund is performing better than
the sector specific fund (average).
4.6 Compare ICICI Prudential Balanced Advantage Fund with
ICICI Prudential 4.36% 8.14% 9.85%

Balanced Advantage
Fund
Funds (Average)
Table 4.6 Compare ICICI Prudential Balanced Advantage Fund with others
Analysis: From the above table 4.6, we can see that the return of ICICI prudential
balanced advantage fund for the 1st year is 4.36%, 3rd year is 8.14% and 5th year is
9.85%
8.14%
10.00%
4.36% 3.13%
5.00%
0.00% ICICI Prudential Balanced

1 Year 3 Y-e1a.r47%5 Year Advantage Fund
-5.00% Annualized AnnualizedAnnualized Top 10 Sector Specific Funds
Returns ReturnsReturns (Average)
-10.00%
-15.00%
-20.00%-18.08%
Graph 4.6 Compare ICICI Prudential Balanced Advantage Fund with others
specific funds (average) is less performing than the ICICI prudential balanced
advantage fund. Whereas in, 1st year ICICI prudential balanced advantage fund
return is 4.36% and sector specific fund (average) return is -18.08%, in 3 rd year
ICICI prudential balanced advantage fund return is 8.14% and sector specific fund
(average) return is -1.47% and in 5th year ICICI prudential balanced advantage
fund return is 9.85% and sector specific fund (average) return is 3.13%. hence, we
can say that ICICI prudential balanced advantage fund is performing better than
the sector specific fund (average).
4.7 Compare HDFC Balanced Advanced Fund with others sector
specific funds
1 Year 3 Year Annualized Returns 5 Year
Annualized Annualized
Returns Returns
HDFC Balanced Advanced Fund -1.17% 7.70% 8.24%
Top 10 Sector Specific Funds -18.08% -1.47% 3.13%

(Average)
Table4.7 Compare HDFC Balanced Advanced Fund with others sector
specific funds
Analysis: From the above table 4.7, we can see that the return of HDFC balanced
advanced fund for the 1st year is -1.17%, 3rd year is 7.70% and 5th year is 8.24%.
10.00 7.70 8.24

% % %
5.00 3.13
% %
0.00 HDFC Balanced
% -11.1Y7e 3 Y- 5 Advanced
- %ar Annualized
e1a.4r7 Year Fund
5.00% Return
Annualize Annualized
% Return
- Top 10 Sector Specific
10.00% d Returns s s
Funds (Average)
-
15.00%
-
18.08%
-
20.00%
Graph 4.7 Compare HDFC Balanced Advanced Fund with others sector
specific funds
specific funds (average) is less performing than the hdfc balanced advantage fund.
Whereas in, 1st year hdfc balanced advantage fund return is -1.17% and sector
specific fund (average) return is -18.08%, in 3rd year hdfc balanced advantage
fund return is 7.70% and sector specific fund (average) return is -1.47% and in 5 th
year hdfc balanced advantage fund return is 8.24% and sector specific fund
(average) return is 3.13%. hence, we can say that hdfc balanced advantage fund is
performing better than the sector specific fund (average).
4.8 Compare Kotak Emerging Equity Fund Regular – Growth
with others sector specific funds
1 Year Annualize 3 Year Annual 5 Year Annual
Kotak Emerging Eq -17.27% -4.49% 6.3%

Fund Regular – Growth

Funds (Average)
Table 4.8 Compare Kotak Emerging Equity Fund Regular – Growth with
Analysis: From the above table 4.8, we can see that the return of Kotak emerging
equity fund regular - growth for the 1 st year is -17.27%, 3rd year is -4.49% and 5th
year is 6.3%. whereas, the return of sector specific fund (average) in the 1 st year is
10.00%
6.30%
5.00% 3.13%
0.00% Kotak Emerging Equity

1 Year 3 Ye- 5 Year Fund
-5.00% AnnualizedAnnualized
1a.r47% Annualize Regular – Growth
Returns - d Returns
R4e.4t9 Top 10 Sector Specific
-10.00% Funds (Average)
u%rns
-15.00%
- -18.08%
-20.00% 17.27
Graph 4.8%Compare
Kotak Emerging Equity Fund Regular – Growth with
specific funds (average) is less performing than the Kotak emerging equity fund
regular - growth. Whereas in , 1st year Kotak emerging equity fund regular -
growth return is -17.27% and sector specific fund (average) return is -18.08% , in
3rd year Kotak emerging equity fund regular - growth return is -4,49% and sector
specific fund (average) return is -1.47% and in 5 th year Kotak emerging equity
fund regular - growth return is 6,3% and sector specific fund (average) return is
3.13%. Hence Kotak emerging equity fund regular - growth is performing better
than the sector specific fund (average).
4.9 Compare Axis Midcap Fund- Growth with others sector
specific funds
Returns
Axis Midcap Fund- -2.07% -7.31% 8.24%
Growth
Funds (Average)
Table 4.9 Compare Axis Midcap Fund- Growth with others sector specific
funds
Analysis: From the above table 4.9, we can see that the return of axis midcap fund
- growth for the 1st year is -2.07%, 3rd year is -7.31% and 5th year is 8.24%.
10.00% 8.24%
5.00% 3.13%
0.00% Axis Midcap

1 Year 3 Y-e1a.4r 5 Year Fund- Growth
2.07%
Annualized
-5.00% - 7% Annualized
Returns Annualized Returns Top 10 Sector Specific
Returns Funds (Average)
-10.00%
-7.31%
-15.00%
-20.00% -18.08%
Table 4.9 Compare Axis Midcap Fund- Growth with others sector specific
funds
specific funds (average) is less performing than the axis midcap fund. Whereas in,
1st year axis midcap fund return is -2.07% and sector specific fund (average)
return is -18.08%, in 3rd year axis midcap fund return is -7.31% and sector specific
fund (average) return is -1.47% and in 5th year axis midcap fund return is 8.24%
and sector specific fund (average) return is 3.13%. hence, we can say that axis
midcap fund is performing better than the sector specific fund (average).
4.10 Compare Invesco India Mid Cap - Growth with others sector
specific funds
Invesco India Mid Cap -10.73% -0.45% 2.43%
– Growth
Funds (Average)
Table 4.10 4.10 Compare Invesco India Mid Cap - Growth with others sector
specific funds
Analysis: From the above table 4.10, we can see that the return of Invesco India
mid cap - growth fund for the 1 st year is -10.73%, 3rd year is -0.45% and 5th year is
5.00% 2.433%.1
3%
0.00%
1 Year - 5 Year
-1.47%
03.4Y5 Invesco India Mid Cap –
-5.00% Annualized Annualized
e%ar Annualized Growth
Top 10 Sector Specific
-10.00% Funds (Average)
-10.73%
-15.00%
-20.00% -18.08%
Graph 4.10 4.10 Compare Invesco India Mid Cap - Growth with others
specific funds (average) is less performing than the Invesco India mid cap -
growth fund. Whereas in, 1st year Invesco India mid cap - growth fund return is
-10.73% and sector specific fund (average) return is -18.08%, in 3 rd year Invesco
India mid cap - growth fund return is -0.45% and sector specific fund (average)
return is -1.47% and in 5th year Invesco India mid cap - growth fund return is
2.43% and sector specific fund (average) return is 3.13%. hence, we can say that
Invesco India mid cap - growth fund is performing better than the sector specific
fund (average).
CHAPTER -5
SUMMARY OF FINDINGS, SUGGESTIONS
& CONCLUSIONS
5.2 Findings
 HDFC Equity Funds better returns compare to Sector Specific Funds.
 Invesco India Mid Cap - Growth better returns compare to Sector Specific
Funds in 1 Years and 3 Years but in long terms Sector Specific Funds
better returns compare to Invesco India Mic cap Growth.
 Axis Midcap Fund- Growth better returns compare to Sector Specific
Funds in all the years of Annualized Returns.
 Kotak Emerging Equity Fund Regular – Growth better returns compare to
Sector Specific Funds in 3 Years and 5 Years but 1 Year Annualized
returns approximately same.
 HDFC Balanced Advanced Fund better returns compare to Sector Specific
 ICICI Prudential Balanced Advantage Fund better returns compare to
Sector Specific Funds in all the years of Annualized Returns.
 SBI Equity Hybrid Fund better returns compare to Sector Specific Funds
in all the years of Annualized Returns.
 Aditya Birla Sun Life Frontline Equity Fund better returns compare to
Sector Specific Funds in all the years of Annualized Returns.
 Kotak Standard Multicap Fund better returns compare to Sector Specific
5.2 Suggestions
 Mutual Fund Schemes should try to provide better returns to its investors.
 People should try to invest in better securities for better profits.
 Try to satisfy their customer by better customer service or by improving
customer relationship management.
 Companies should try to make people initiative towards risk.
 Investors should be made fully aware of the concept of mutual fund & all
the terms and conditions.
 It should more emphasize in advertising, as it is the most powerful tool to
position and brand in the mindsets of customers.
 It should educate the customers about the new schemes of the Equity
Mutual Funds & Sector Specific Mutual Fund Schemes.
5.3 Conclusion
To conclude we can say that mutual fund is a very much profitable tool for
investment because of its low cost of acquiring fund, tax benefit, and
diversification of profits & reduction of risk. Many investors who have invested in
Mutual Fund have better returns than other investments. There is also an effect of
age on mutual fund investors like; old people & widows want regular returns that
capital appreciation. Companies can adopt new techniques to attract more & more
investors. I have also respondents and it can increase its investors by improving
itself in some terms.
To conclude we can say Equity Mutual Fund is a best investment for investor, as
well as to those who want regular returns on their investment.
Mutual fund is also better and preferable for those who want their capital
appreciation.
Equity Mutual Funds are doing considerable achievements in mutual fund
industry.
An equity fund is a mutual fund scheme that invests predominantly in equity
stocks. In the Indian context, as per current SEBI Mutual Fund Regulations, an
equity mutual fund scheme must invest at least 65% of the scheme’s assets in
equities and equity related instruments. Mutual funds which invest in a particular
sector or industry are said to be sector-specific funds. Since the portfolio of such
mutual funds consists mainly of investment in one particular type of sector, they
offer less amount of diversification and are considered to be risky.
But as far as longterm scenario is concerned, diversified equity funds have beaten
sectoral funds with greater margin. This leads to the conclusion that sectoral funds
can be a good investment avenue for limited period of time or for the time in
which the specific industry or sector keeps on performing high. It is not advised to
common investors to carry such funds for long period of time when chances of
getting long term below average returns increase.
BIBLIOGRAPHY
Books:
 Bodie, Kane, Marcus “Security Analysis & Portfolio Management”, 5th

edition -Tata Mc Graw hill publications.
 Brassington, F and Pettitt, S, (2000), Principles of Marketing, Second
Edition, Prentice Hall, Harlow
 C.R. Kothari, Research Methodology, New Delhi, Vikas Publishing house
Pvt. Ltd. 2007
 Dr. J.C. Verma, “Guide to – Mutual Funds & Investment Portfolio “, 2nd
edition – Bharat Publishing House.
 Kevin Keller (2009), Marketing Management (Thirteenth Edition)
 Mutual funds Data, Interpretation and Analysis by “K.G.Sahadevan”.
Published by: Prentice Hall of India.
 Marketing Management, The McGraw.Hill Company Rajan Saxena (Third
Edition)
Magazines:
 Business world
 Business & Mgt.
 Business today
Websites:
 www.mutualfund.com
 www.moneycontrol.com
 www.valueresearchonline.com
 www.amfiindia.com
 www.sebi.govt.in
 www.mutualfundsindia.com
ANNEXURE
Sectors
SL Sectors specific fund Old NAVs

No 2016 2017 2018 2019
1 DSP natural resources and 20.11 20.32 21.64 23.54
new energy fund direct
plan growth
2 Aditya Birla sun life India 70.45 68.93 71.61 75.42
Gennext direct fund
growth
3 ICICI prudential 47.33 48.25 50.43 51.45
technology direct plan
growth
4 Invesco India 16.76 17.43 14.54 15.33
infrastructure fund direct
growth
5 UTI transportation and 60.55 64.76 65.65 70.54
logistics fund direct
growth
6 Nippon India pharma fund 170.54 168.76 181.54 190.65
direct growth
7 Franklin build India fund 26.54 28.55 29.54 30.43
growth
8 SBI banking & financial 12.23 11.65 12.54 15.43
services fund direct growth
9 Tat banking and financial 14.54 12.54 13.32 15.51
services fund direct growth
10 LIC mf infrastructure fund 14.32 13.43 11.10 12.43
direct growth
1) DSP Natural Resources and New Energy Fund Direct Plan Growth
Min Investment Amt ₹500
AUM ₹269Cr
NAV (1st April 2020) 24.22
1Y Returns -28.5% (Rs. 4,290)
3Y Returns -8.2% (Rs. 16,524)
5Y Returns 5.3% (Rs. 31,590)
2) Aditya Birla Sun Life India Gennext Direct Fund Growth
Min Investment Amt ₹1,000
AUM ₹1,335Cr
NAV (1st April 2020) 77.02
1Y Returns -12.2% (Rs. 10,536)
3Y Returns 2.2% (Rs. 36,792)
5Y Returns 7.1% (Rs. 64,260)
3) ICICI Prudential Technology Direct Plan Growth

AUM ₹349Cr
NAV (1st April 2020) 53.65
1Y Returns -11.5% (Rs. 53,100)
3Y Returns 8.9% (Rs. 1,96,020)
5Y Returns 5.2% (Rs. 3,15,600)
4) Invesco India Infrastructure Fund Direct Growth
AUM ₹37Cr
NAV (1st April 2020) 16.42
1Y Returns -10.4% (Rs. 10,752)
3Y Returns -0.6% (Rs. 35,784)
5Y Returns -2.6% (Rs. 58,440)
5) UTI Transportation and Logistics Fund Direct Growth

AUM ₹973Cr
NAV (1st April 2020) 71.39
1Y Returns -28.1% (Rs. 58,314)
3Y Returns -14.0% (Rs. 1,54,800)
5Y Returns -4.2% (Rs. 2,87,400)
6) Nippon India Pharma Fund Direct Growth
AUM ₹2,851Cr
NAV (1st April 2020) 195.95
1Y Returns 30.3% (Rs. 78,180)
3Y Returns 14.4% (Rs. 2,05,920)
5Y Returns 7.4% (Rs. 3,22,200)

7) Franklin Build India Direct Fund Growth
AUM ₹851Cr
NAV 31.24
1Y Returns -32.1% (Rs. 40,740)
3Y Returns -7.3% (Rs. 1,66,860)
5Y Returns 1.1% (Rs. 3,03,300)
8) SBI Banking & Financial Services Fund Direct Growth
AUM ₹1,267Cr
NAV 13.00
1Y Returns -33.5% (Rs. 39,900)
3Y Returns -1.6% (Rs. 1,57,120)
5Y Returns 6.3% (Rs. 2,81,100)

9) Tata Banking and Financial Services Fund Direct Growth
AUM ₹407Cr
NAV 14.74
1Y Returns -28.4% (Rs. 61,100)
3Y Returns -1.7% (Rs. 1,86,940)
5Y Returns 7.3% (Rs. 2,78,100)
10) LIC MF Infrastructure Fund Direct Growth
AUM ₹41Cr
NAV 11.31
1Y Returns -26.4% (Rs. 44,160)
3Y Returns -6.8% (Rs. 1,67,760)
5Y Returns -1.6% (Rs. 2,95,200)

Equity
SL Equity funds Old Navs
No 2016 2017 2018 2019
1 Hdfc equity fund 460.69 450.51 488.54 490.43
2 Hdfc mid cap 40.83 42.93 41.87 45.91
opportunities fund
3 Aditya Birla sun life 170.45 168.93 171.61 175.54
frontline Equity fund
4 Kotak standard multi 30.45 28.93 31.61 35.42
cap fund
5 SBI equity hybrid fund 120.45 128.93 121.61 125.42
6 ICICI prudential 30.99 28.54 31.21 35.54
balanced advantage
fund
7 Hdfc balanced 150.45 158.93 151.61 155.42
advanced fund
8 Kotak emerging equity 170.77 128.76 121.09 125.88
fund regular – growth
9 Axis midcap fund – 60.77 68.76 61.65 64.87
growth
10 Invesco India mid cap - 80.81 88.76 81.09 85.88
growth
1) HDFC Equity Fund
Investment Information
Fund Type Open-Ended
Investment Plan Growth
Asset Size (Rs. Cr.) 23737.12 Cr.
Min. Investment 5000
Expense Ratio 1.24
Exit Load 1%
NAV (1st April 2020) 496.86
1 Year Return -5.95% (Rs. 56,430)
3 Year Return 8.53% (Rs. 1,64,646)
5 Year Return 8.17% (Rs. 2,75,490)
2) HDFC Mid Cap Opportunities Fund
Expense Ratio 1.17
Exit Load 1%
NAV (1st April 2020) 44.09
1 Year Return -10.49% (Rs. 53,706)
3 Year Return 4.90% (Rs. 1,71,180)
5 Year Return 9.88% (Rs. 3,29,640)
3) Aditya Birla Sun Life Frontline Equity Fund
Min. Investment 500
Expense Ratio 1.10
Exit Load 1%
NAV (1st April 2020) 186.2
1 Year Return -4.91% (Rs. 5,705)
3 Year Return 6.30% (Rs. 19,134)
5 Year Return 9.14% (Rs. 32,742)
4) Kotak Standard Multicap Fund

5) SBI Equity Hybrid Fund
Expense Ratio 1.03
Exit Load 1%
NAV (1st April 2020) 129.61
1 Year Return 1.92% (Rs. 12,230)
3 Year Return 9.24% (Rs. 39,326)
5 Year Return 11.43% (Rs. 66,858)
6) ICICI Prudential Balanced Advantage Fund
Min. Investment 500
Expense Ratio 1.06
Exit Load 1%
NAV (1st April 2020) 34.76
1 Year Return 4.36% (Rs. 6,262)
3 Year Return 8.14% (Rs. 19,465)
5 Year Return 9.85% (Rs. 32,955)
7) HDFC Balanced Advanced Fund

Expense Ratio 1.11
Exit Load 1%
NAV (1st April 2020) 159.74
1 Year Return -1.17% (Rs. 59,298)
3 Year Return 7.70% (Rs. 1,93,860)
5 Year Return 8.24% (Rs. 3,24,720)
8) Kotak Emerging Equity Fund Regular – Growth

9) Axis Midcap Fund- Growth
10) Invesco India Mid Cap - Growth
Expense Ratio 1.24
Exit Load 1%
NAV (1st April 2020) 82.87
1 Year Return -10.73% (Rs. 53,562)
3 Year Return -0.45% (Rs. 1,79,190)
5 Year Return 2.43% (Rs. 3,07,290)

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“A STUDY ON MUTUAL FUND: COMPARISON BETWEEN EQUITY

DIVERSIFICATION AND SECTOR SPECIFIC SCHEMES”

Acharya Institute of Graduate Studies Page 1

Fig 1.1 Investment Chain

Acharya Institute of Graduate Studies Page 2

A mutual fund is the answer to all these situations. It appoints professionally

Acharya Institute of Graduate Studies Page 3

number of units owned by them.

1.3 Mutual Fund Industry in India

Acharya Institute of Graduate Studies Page 4

Acharya Institute of Graduate Studies Page 5

functions under the SEBI (Mutual Fund) Regulations 1996.

Acharya Institute of Graduate Studies Page 6

1.4 Different Types of Mutual Funds

Acharya Institute of Graduate Studies Page 7

over the long-term. Normally an equity fund or diversified equity fund as it is

Equity funds can be further divided into three categories:

Acharya Institute of Graduate Studies Page 8

1.5 Theoretical Background of The Topic

Acharya Institute of Graduate Studies Page 9

market, regional or single-country funds.

Acharya Institute of Graduate Studies Page 10

1.7 A Fund for Everyone

2.2 Statement of The Problem

2.3 Objectives of The Study

2.4 Scope of The Study

2.7 Data Collection

2.10 Limitations of The Study

 Limited time period

3.1 Mutual Funds in India

 ABN Amro Asset Management co. Ltd.

 Benchmark Asset Management co. Ltd.

 Birla Asset Management co. Ltd

 BOB Asset Management co. Ltd

 Canbank Asset Management co. Ltd

 Chola Asset Management co. Ltd

 Deutsche Asset Management co. Ltd

 DSP Asset Management co. Ltd

 Escorts Asset Management co. Ltd

 Fidelity Asset Management co. Ltd

 Franklin Templeton Investments

 HDFC Asset Management co. Ltd

 HSBC Asset Management co. Ltd

 ING Vysya Asset Management co. Ltd

 JM Financial Asset Management co. Ltd

 Kotak Mahindra Asset Management co. Ltd

 Morgan Stanley Asset Management co. Ltd

 Principal Asset Management co. Ltd

 Prudential ICICI Asset Management co. Ltd

 Reliance Asset Management co. Ltd

 Sahara Asset Management co. Ltd

 SBI Asset Management co. Ltd

 Standard Chartered Asset Management co. Ltd

 Sundaram Asset Management co. Ltd

 Tata Asset Management co. Ltd

 UTI Asset Management co. Ltd

3.3 Association of Mutual Funds in India (Amfi)