TABLE OF CONTENT

 Introduction
 Background of study
 Objective of study
 Research methodology
 Review of literature
 Data analysis
 Results and findings
 Conclusion
 References
 Introduction
 Mutual funds are investment companies that pool money from investors at
large and offer to sell and buy back its shares on a continuous basis and use
the capital thus raised` to invest in securities of different companies.

 Process of investing in mutual fund

BACKGROUND OF THE STUDY

 Mutual Fund is a topic which is of enormous interest not only to

researchers all over the world, but also to investors. Mutual funds as
a medium-to-long term investment option are preferred as a suitable
investment option by investors. However, with several market
entrants the question is the choice of mutual fund. The study focuses
on this problem of mutual fund selection by investors. Though the
investment objectives define investor’s preference among fund types
(balanced, growth, dividend etc.) the choice of fund based on a
sponsor’s reputation remains to be probed. We focus on analyzing
the performance of mutual funds by using three models i.e. Sharpe,
Treyner and Jensen.
PROBLEM STATEMENT AND IMPORTANCE OF THE STUDY

 There are so many funds and schemes are available in mutual

fund market. Investors know that how much risk they can take.
Based on that they have to choose schemes.
 Problem is that chosen scheme provides the best return as
compare to the market and other schemes. For that certain
model available Sharpe’s model, Treynor’s model and Jenson’s
model. These models are suggested that which schemes
provide best return.
 Importance of the study is that a fund’s performance can be
judged with respects to investors’ expectation.
OBJECTIVES OF THE STUDY
 The primary object of the present project is to know about which
mutual funds gave highest performance in a short-term period.

 To know about types of mutual funds in detail.

 To know, which schemes gives highest return within one-year.
 To measure the growth oriented Mutual Fund are earning higher
returns than market Portfolio.
 To find the extent of diversification in the portfolio of securities of
sponsored mutual funds.
 To compare the performance of sponsored mutual funds using
traditional investment measures.
RESEARCH METHODOLOGY
 Research Design is the roadmap for carrying out the research activity in the
project. In our project of “Performance Evaluation of Mutual Fund” i have
carried out the research of which mutual fund is providing higher return by
comparing the returns of different mutual funds and i have also compared
whether the mutual fund can beat the market return or not.

For this research activity,

 I have selected 10 mutual funds from Indian market. All funds are in equity
growth category.
 Data has been collected from money control, value research online, and
mutual fund India web sites.
 Funds selected are mostly preferable by investors.
 Treasury bill rate of return is selected as risk free return, which is 8.5% p.a.
 Collected NAV of funds of each quarter for the year 2013 and define return.

 Defined standard deviation on the basis of Quarterly return.

 Found out average return.

 Defined beta of funds and market, S&P CNX Nifty index return is taken as
market return.

 Found out Treynor, Sharpe and Jensen ratio and performance.

 Finally we have given rank to mutual funds according to each ratio.