Perfomance Analysis of Large Cap Mutual Fund

© 2023 JETIR June 2023, Volume 10, Issue 6 www.jetir.
org (ISSN-2349-5162)
A STUDY ON PERFORMANCE OF SELECTED

LARGE CAP MUTUAL FUNDS IN INDIA
*Shaik.Rabbani **P.Haritha
Student, MBA 2 year Assistant professor
*Student,MBA II Year, Department of MBA, Annamacharaya institute of Technology &
Sciences:: Tirupati (Autonomous)
**Assistant Professor , Department of MBA, Annamacharaya Institute of Technology &
Sciences:: Tirupati (Autonomous)
ABSTRACT
Mutual funds were introduced into the Indian financial system with the intention of providing common investors
with relatively safer investment options. In this study, the researcher attempted to comprehend how various large-
cap mutual funds in India performed. Five large-cap mutual funds have been chosen for the study's purpose. The
average return, standard deviation, beta, Sharpe ratio, Jensen ratio, and Treynor ratio were some of the tools and
techniques used to obtain secondary data for the performance analysis. The discoveries portrays that Canara robeco
blue chip value reserve, Mirae resource huge cap fund,Nippon India enormous cap store showed best yield among
the chose reserves.
Keywords: Mutual Funds, Investment avenues, Evaluation of Performance
INTRODUCTION
This study aims to take investors' needs into account when investing in mutual funds, which could be helpful to
mutual fund companies when launching new schemes. Investors and portfolio managers alike benefit greatly from
analyzing mutual funds' past performance. It empowers a financial backer to access regarding how much return has
been produced by the portfolio chief and what hazard level has been accepted in creating such returns. In a similar
vein, fund managers would be able to evaluate their own performance over time as well as that of other industry
competitors.
LITERATURE REVIEW
1. A STUDY ON PERFORMANCE OF LARGE CAP MUTUAL FUNDS IN INDIA
An Empirical Study" by Dr. H. N. Nataraja and Dr.G.R.Chandrashekara. This study analyzed the performance of
10 large cap mutual funds in India over a period of 5 years (2011- 2015). The study found that these funds had
performed better than the benchmark index, and that the fund managers' stock-picking abilities had contributed
significantly to their performance.
JETIR2306163 Journal of Emerging Technologies and Innovative Research (JETIR) www.jetir.org b506
© 2023 JETIR June 2023, Volume 10, Issue 6 www.jetir.org (ISSN-2349-5162)
2.A STUDY ON PERFORMANCE EVALUATION OF LARGE CAP EQUITY MUTUAL FUNDS IN
INDIA
By A. R. Prasanna and Dr. M. V. Rajeev. This study analyzed the performance of 18 large cap equity mutual funds
in India over a period of 3 years (2014-2016). The study found that most of these funds had outperformed the
benchmark index, and that active management strategies had contributed significantly to their performance.
3. COMPARATIVE STUDY OF SELECTED LARGE CAP EQUITY MUTUAL FUNDS
.(Sunil M. Adhav & Mr. Anoop Waghmare 2013) The present research is an attempt to study comparative
performance of selected mutual funds. The study focus on selected mutual fund schemes of selected Indian
companies comprising Equity Schemes. The total 29 equity mutual funds are selected for the study. The
performance of selected mutual funds is analysed with the help of Return, risk (standard Deviation), and Sharpe
ratio
NEED OF THE STUDY
Mutual funds are a rapidly expanding sector for the Indian financial market and economy. Small and household
investors who mobilize their savings for capital market investments favor mutual fund investing. The majority of
middle-class families in India want to minimize risk in order to maximize investment returns. If you want to check
the performance of specific large-cap mutual fund schemes in India, this study will serve as a guide.
SCOPE OF THE STUDY
The study analyzes the performance of the selected mutual funds over a specific period. The study aims to identify
the top-performing large cap mutual funds and thefactors that contribute to their success.
RESERCH OBJECTIVE
To examine the returns, risks, standard deviation, beta, Sharpe ratio, Treynor ratio, and Jensen's ratio of a few
large-cap mutual fund schemes.
To break down execution assessment measures for various assets which help the financial backer to decision at
right roads venture for the productive reasons.
RESEARCH PROCESS
 Research design: For this research study longitudinal Analytical research design has been applied.
 Data collection methods: This study made use of secondary data. The Association of Mutual Funds in India,
Value Research, the websites of Asset Management Companies (AMCs), and Journals Etc. served as sources for
the secondary data.
 Tools and techniques: For the performance analysis various statistical and financial tools like Average return,
Beta , Sharpe ratio ,Jensen ratio, Treynor ratio has been applied.
DATA ANALYSIS:
AVERAGE RETURN
RANK SCHEMES AVERAGE RETURN

1 CANARA ROBECO BLUECHIP EQUITY FUND 15.49
2 ICICI PRUDENTIAL BLUECHIP FUND 15.64
3 KOTAK BLUECHIP FUND 15.54
4 NIPPON INDIA LARGE CAP FUND 18.04
5 MIRAE ASSET LARGECAP FUND 20.42
AVERAGE RETURN
25 20.42
18.04
20 15.49 15.64 15.54
RETURNS
15
10
5
0
CANARA ICICI KOTAK NIPPON MIRAE ASSET AVERAGE RETURN
ROBECO PRUDENTIAL BLUECHIP INDIA LARGE LARGECAP
BLUE CHIP B;LUECHIP FUND CAP FUND FUND
EQUITY FUND
FUND
SCHEMES
INTERPRETATION
The Average return Mirae asset large cap fund i.e., 20.42 has less risk as compared to other schemes having
moderate risk. The Average return of Canara robeco blue chip equity fund I.e.,15.49 has more risk as compared to
other schemes.
BETA
RANK SCHEMES BETA
BETA RATIO
0.99
1 0.96
0.94 0.94
0.95
BETA
0.91
0.9
0.85
CANARA ICICI KOTAK NIPPON INDIA MIRAE ASSET BETA
ROBECO BLUE PRUDENTIAL BLUECHIP LARGE CAP LARGECAP
CHIP EQUITY B;LUECHIP FUND FUND FUND
FUND FUND
SCHEMES
INTERPRETATION
The Beta of canara robeco blue chip equity fund i.e.0.91 has less risk as compared to other schemes having
moderate risk .The Beta of Nippon India Bluechip Fund i.e.0.99has more risk as compared to other schemes. Beta
indicate that one percent change in the market return causes one percent change in the fund return.
SHARPE RATIO
RANK SCHEMES SHARPE

CANARA ROBECO BLUECHIP EQUITYFUND
1 0.91
SHARPE RATIO
1.11 1.14
1.2 1.02 0.95
0.91
SHARPE RATIO
1
0.8
0.6
0.4
0.2
0 SHARPE RATIO
CANARA ICICI KOTAK NIPPON INDIA MIRAE ASSET
ROBECO BLUE PRUDENTIAL BLUECHIP LARGE CAP LARGECAP
CHIP EQUITY B;LUECHIP FUND FUND FUND
FUND FUND
SCHEMES
INTERPRETATION
It is clear from the figure that all 5 samples of mutual fund schemes had outperformed the benchmark return. The
Sharpe Ratio is the measure of average return earned in excess of the risk-free rate per unit of total risk. The Sharpe
ratio of Nippon India Large Cap fund which is 1.14 and is also ranked 1 among performance of the scheme. High
value of Sharpe ratio indicates that the fund is performing well in respect to the risk associated with it. whereas the
lowest value is CANARA ROBECO BLUECHIP EQUITY FUND which is 0.91.it indicates that the fund is not
performing well in response to the associated with it.
TREYNOR RATIO
RANK SCHEMES TREYNOR

CANARA ROBECO BLUECHIP EQUITY
1 FUND 0.16
TREYNOR RATIO
0.25 0.2 0.21
0.16 0.18 0.17
TREYNOR RATIO
0.2
0.15
0.1
0.05
0
CANARA ICICI KOTAK NIPPON INDIA MIRAE ASSET TREYNOR
ROBECO BLUE PRUDENTIAL BLUECHIP FUND LARGE CAP LARGECAP
CHIP EQUITY B;LUECHIP FUND FUND
FUND FUND
SCHEMES
INTERPREATION:
The Treynor ratio is a risk/return measure that allows investors to adjust a

portfolio returns for systematic risk A higher Treynor ratio result means a portfolio is a more suitable investment.
The Treynor ratio of Nippon India Large Cap fund which is 0.21 and is also ranked 1 among performance of the
scheme. High value of indicates that the fund is performing well in respect to the risk associated with it. whereas
the lowest value is CANARA ROBECO BLUECHIP EQUITY FUND which is 0.16.it indicates that the fund is not
performing well in response to the associated with it.
JENSEN RATIO
RANK SCHEMES JENSEN

CANARA ROBECO BLUECHIP EQUITYFUND
1 -2.16
5 MIRAE ASSET LARGECAP FUND -3.34
JENSEN RATIO
4
2.43 2.25
JENSEN RATIO
2
0.75
0
JENSEN
CANARA ROBECO ICICI PRUDENTIAL KOTAK BLUECHIP NIPPON INDIA MIRAE ASSET
-2 BLUE CHIP EQUITY B;LUECHIP FUND FUND LARGE CAP FUND LARGECAP FUND
FUND
-2.16
-4 -3.34
SCHEMES
INTERPRETATION
The Jensen ratio values are typically used to rank the performance of actively managed mutual funds and their
investment managers. A higher alpha show that the particular fund often outperforms the market. The Jensen ratio
of Canara robeco blue chip equity fund -2.16 and Mirae asset large cap fund -3.34 both funds are in
underperformance. The Jensen ratio of ICICI prudential blue-chip fund 2.43 considered a positive sign for an
investment because it suggests that the portfolio is generating higher returns than would be expected given its level
of risk
STANDARD DEVIATION
STANDARD
RANK SCHEMES
DEVIATION
STANDARD DEVIATION
18.5 18.14
STANDARD DEVIATION
18 17.5
17.5 16.83 16.8
17
16.5 16.25
16
15.5
15 STANDARD DEVIATION
SCHEMES
INTERPRETATION
The Standard Deviation Canara robeco blue chip fund i.e., 16.25 has less risk compared to other schemes having
moderate risk. The Standard deviation of Nippon asset large cap fund i.e., 18.14 has more risk as compared to
other schemes.
FINDINGS
 Taking all factors into consideration i.e., Risk and Return, investing in Mutual Fund is the best for investors who
wanted to seek long term capital gain.
 All the funds’ returns have outperformed the market index nifty 50 except Miraeasset large cap fund.
 When compared with the Standard Deviation, Nippon India large cap fund, Mirae asset large cap fund &Canara
Robeco blue chip equity funds standard deviation is more making more dispersion in the data and return with
more spread from their mean.
 When compared with the Average Returns All the funds have outperformed the Market index Nifty 50 except
Canara Robeco blue chip equity fund, Mirae Asset large cap fund During 5 has given highest average returns
i.e.,20.42 as comparedto other large cap funds.
 According to Beta, the Canara Robeco blue chip equity fund, ICICI Prudential Blue-chip fund & Kotak Blue
chip fund have much less Volatility compared to other funds.
 The Sharpe ratio of Nippon India large cap fund i.e,1.14 as compared to other funds and is also ranked 1 among
performance of the scheme. Whereas CanaraRobeco blue chip fund has the lowest Sharpe Ratio i.e.,0.91.
 The Treynor ratio of Nippon India Large Cap fund which is 0.21 and is also ranked 1 among performance of the
scheme. High value of indicates that the fund is performing well in respect to the risk associated with it. whereas
the lowest value is CANARA ROBECO BLUECHIP EQUITY FUND which is 0.16
 The Jensen ratio of Canara Robeco blue chip equity fund -2.16 and Mirae asset large cap fund -3.34 both funds
are in underperformance. The Jensen ratio of ICICI prudential blue chip fund 2.43 is considered a positive sign
for an investment because it suggests that the portfolio is generating higher returns thanwould be expected given
its level of risk.
SUGGESTIONS
 From the study it is suggested that the investors can consider investment in Miraeasset large cap fund because it
appears to be the best fund return over the period with highest return of 20.42%.
 The investors are advised to invest their savings in Nippon India large cap fund asthis fund is comparatively the
best performing fund of return & Sharpe index value.
 Advise to the investors of Nippon India large cap fund to continues as it is a less risky fund and has a positive
Treynor value.
 The study of fund Mirae asset large cap fund returns & ICICI prudential blue-chip fund returns down falling is
indicated by negative Jensen value, hence investing in the same is not recommended to the investors.
CONCLUSION
Based on the above analysis, the main findings of the study are: From foregoing performance analysis of the
selected 5 equity large cap funds, it’s clear that all the funds performed well in terms of return during the study
period expect Canara Robeco blue chip equity fund. According to Sharpe ratio, the average performance of
Nippon India large cap fund is best among the selected large cap funds during the study period. For taking
decision in investing in mutual funds, the evaluation plays a vital role.The ranking given to the Large Cap funds
attract the investment by the investors. Therefore, it is essential for investors to consider statistical parameters
like average return, beta, standard deviation, Sharpe Ratio, Jensen Ratio, Treynor Ratio while investing in
mutual funds apart from considering NAV and TOTAL RETURN in order to ensure consistent performance of
mutual funds.
REFERENCE
BHATT, P. G. (2015). An Analytical study on Investment Pattern of Fund Categories of Mutual Funds in
India. International Journal for Research in Management and Pharmacy.
Bhatt, P. G. (2015). Literature review on Investment Pattern and Performance of Selected Equity Mutual
Funds in India. INDIAN JOURNAL OF APPLIED RESEARCH.
Gurunathan, N. a. (2013). The Growth of Mutual Funds and Regulatory Challenges. INDIAN JOURNAL OF
APPLIED RESEARCH. 5) Jain, S. (2012). Analysis of Equity Based Mutual Funds in India. IOSR Journal of
Business and Management (IOSRJBM).
WEBSITES REFERED
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© 2023 JETIR June 2023, Volume 10, Issue 6 www.jetir.

A STUDY ON PERFORMANCE OF SELECTED

RANK SCHEMES AVERAGE RETURN

RANK SCHEMES SHARPE

RANK SCHEMES TREYNOR

The Treynor ratio is a risk/return measure that allows investors to adjust a

RANK SCHEMES JENSEN

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