A Comparative analysis of performance of selected schemes between Reliance

and ICICI Prudential Mutual Funds.

Summer Internship Project

Submitted in

Partial Fulfilment for the Award of the Degree

Master of Management Studies (MMS)

To

Thakur Institute of Management Studies and Research

As per the guidelines of

University of Mumbai

Submitted by
Parin Parag Shah
M2123084
MMS 2021 – 23

Under the Guidance of

Ms. Aarti Vyas

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 Project Completion Certificate

This is to certify that Parin Parag Shah of Thakur Institute of Management Studies and
Research has duly completed his project as part of his MMS curriculum for 2021 - 2023
at “Reliance Securities” from May 2022 on "A Comparative analysis of performance of
selected schemes between Reliance and ICICI Prudential Mutual Funds" under the
guidance of Ms. Aarti Vyas.

Ms. Aarti Vyas Dr. Pankaj Natu

(Director, TIMSR).

Signature of Guide:

Date:

2
Company Certificate

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 Student Declaration

I, Parin Parag Shah, hereby declare that the presented report of summer internship
titled “A Comparative analysis of performance of selected schemes between
Reliance and ICICI Prudential Mutual Funds” is uniquely prepared by me under
the guidance of Ms. Aarti Vyas, Finance Department, TIMSR after the completion
of two months’ work at Reliance Securities.

I also confirm that, the report is only prepared for academic requirement and not for
any other purpose. It might not be used with the interest of opposite party of the
corporation.

Parin Shah
M2123084
MMS – Finance
Batch: 2021 – 23
TIMSR

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 Acknowledgment

I would like to thank Reliance Securities and Thakur Institute of Management Studies and
Research for giving me an opportunity to learn and pursue my Summer Internship and
understand about the Finance and Research aspects.

I would like to thank and express my sincere gratitude to industry mentor Mr. Swapnil Naik.
Their brilliance and experience in this field provided me with some variable’s insight overall,
it was a great learning experience under his guidance.

Special thanks to Ms. Aarti Vyas for her valuable guidance in completing this project and
helping me to understand this project better and supporting me with her experience on the same
to make my project worth for my own benefit and also for the overall benefit of the objective
of the summer internship project.

Finally, yet importantly, I would like to express my heartfelt thanks to my beloved parents for
their blessing, my friends for their help and wishes for the successful completion of project.

My sincere and heartfelt thanks to all my teachers at the Department of MMS, Thakur Institute
of Management Studies and Research for their valuable support and guidance.

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 Executive Summary

The study mainly focused on schemes between the Reliance and ICICI Prudential mutual
funds. The mutual funds are of various types like equity, debt and balanced funds. They are
phases of mutual funds and also the advantage and disadvantage of mutual funds. Objective of
the study the recent trends of mutual funds and also to study the selected schemes and analyze
the performance of Reliance and ICICI Prudential mutual funds and identify the best amongst
them and the other one is to examine the awareness among Reliance and ICICI Prudential
mutual funds.

The sources of data are primary and secondary data. The primary data is collected by taking
the objectives into consideration and questionnaire has been prepared. The secondary data is
collected by the performance of selected schemes and overall analyze of Reliance and ICICI
Prudential mutual funds. From this study the conclusion is that the people who invest their
money in ICICI Prudential Mutual fund schemes said that it gives high returns of the selected
schemes to the investors and Reliance mutual fund schemes are more risky for gaining returns
of the selected schemes.

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 INDEX
Sr. No. Topic Page No.

1 Introduction 8 – 18

1.1 Types of Mutual funds 8 – 11

1.2 Advantage and Disadvantage of Mutual Funds 11 – 12

1.3 History of Mutual Fund 13 – 15

1.4 Reliance mutual funds schemes 15 – 16

1.5 ICICI Prudential funds schemes 17 – 18

1.6 Research Objectives 18

2 About the Organization 19 – 21

3 Review of Literature und 22 – 29

4 Data Collection 30 – 56

4.1 Primary Data 30 – 45

4.2 Secondary Data 46 – 56

4.2.1 Equity fund 46- 49

4.2.2 Debt fund 50 – 52

4.2.3 Balanced fund 53 – 56

5. Findings 57 – 58

6 Conclusion 59

7 Learning Outcomes 60

8 Bibliography 61

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 1. Introduction:

In order to invest in equities, bonds, government securities, and money market instruments, a
mutual fund pools and collects money from a number of individuals.

Professional fund managers invest the money raised through mutual fund schemes in stocks,
bonds, etc. in accordance with the investment objective of the scheme. After deducting any
necessary costs and fees, the income or profits from this collective investment scheme are
allocated equally among the investors by figuring out the "Net Asset Value" of the scheme, or
NAV. Mutual funds charges a small fee in return.

In a simple word, a mutual fund is a pool of money that is provided by a number of investors
and is managed by a professional fund manager.

In India, mutual funds are created as trusts under the Indian Trust Act of 1882 and in line with
the SEBI (Mutual Funds) Regulations of 1996.

The costs and fees that mutual funds charge to operate a scheme are regulated and are limited
by SEBI's guidelines.

1.1 Types of Mutual funds

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Based on their structure:

1. Open ended funds:

The term "open ended funds" refers to the fact that investments and redemptions are
always open in these kinds of funds. In India, open ended funds are the most common
form of mutual fund investment. These funds are perpetually open because they have
neither a lock-in period nor maturity. In general, open-ended funds are allowed to
accept public investments up to their full AUM capacity. Open ended funds base their
daily NAV calculations on the value of the underlying securities at the end of the day.
In most cases, these funds are not traded on stock exchanges.

2. Close ended funds:

Initial entry into these funds is permitted during the Initial Public Offering (IPO), after
which entry and exit are both prohibited. The redemption date for these funds is fixed.
One of the characteristics of closed-ended schemes is that they typically trade at a 23%
discount to NAV; however, the discount gets narrows as maturity nears. These funds
are only open for subscription once, and they can only be redeemed on the fixed
redemption date. With certain exceptions, the units of these funds are listed, tradeable,
and subscribers have the option to withdraw their money at any moment through the
secondary market.

Based on investment objectives:

1. Equity funds:
Equity Funds are mutual fund schemes that allocate their assets depending on the
investing goals of the underlying scheme to equities of different companies. These
funds are a great investment for capital appreciation investments since they have the
ability to generate wealth over the long term. Equity funds are a good option for
investors who want to gain exposure to the stock market and long-term investments.

2. Balanced funds:
These funds to provide a well-balanced mixture of safety, income, and capital growth.
Investment in a portfolio comprising both fixed income and equities is the approach of

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 balanced funds. A typical balanced fund will have a weighting of 40% fixed income
and 60% equities.

3. Debt funds:
Bond funds actively trade and invest in a variety of bonds. Bond funds aren't without
risk, but they are likely to pay higher returns than certificates of deposit and money
market investments. Bonds come in a wide variety of forms; thus, bond funds can differ
greatly depending on where they invest.

4. Money market or Liquid funds:

These funds are also income funds and seek to offer simple liquidity, capital
preservation, and moderate income. These schemes place more money into safe short-
term investments including Treasury Bills, CDs, and interbank call money as well as
government 24 securities, commercial paper, etc. In comparison to other funds, returns
on these plans fluctuate substantially less. These funds are appropriate for both
individual and corporate investors as a means to temporarily park their excess cash.

Terms explained:
1. Index funds:
These funds use the same investment strategy as well-known market indices like
the S&P 500 and the BSE Index. The index fund's value fluctuates in accordance
with the benchmark index.

2. Diversified funds:
These funds make investments in companies across various sectors. These funds
are generally meant for risk-takers who are not bullish about any one sector.

3. Sector funds:
These funds primarily invest in equity shares of companies in a certain industry or
business sector. Investors who have a strong bullish trend toward a certain sector are
the target audience for these funds.

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 4. Saving funds:
According to the Income Tax Act, these funds provide investors with tax benefits.
Opportunities provided under this scheme include tax refunds U/s 88 and capital
gains tax savings U/s 54EA and 54EB. They work best for investors looking for tax
concessions.

5. Gilt funds:
These funds invest Central and State government. They provide a secured return
and guarantee the safety of the principal amount because they are government-
backed bonds. They work well for long-term, medium-term investors who are risk-
averse.

6. Hedge funds:
These funds engage in extremely speculative trading. In order to boost the value of
the portfolio, they hedge risks.

1.2 Advantages and Disadvantages of Mutual funds

Advantages:

 Professional Management:
The main advantage of investing in mutual funds is that they are run by qualified and
experienced professionals who are supported by a dedicated investment research staff
that evaluates the performance and future prospects of businesses and chooses
appropriate assets.

 Portfolio Diversification:
Since diversifying portfolios is one of the fundamental principles of investing, using a
mutual fund can be an easy and effective way to achieve this objective. They make
investments in a number of companies in a wide range of sectors and industries.
Because not all equities lose money at the same time and in the same proportion,
diversification lowers risk.

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  Low Costs:
Considering the costs involved, mutual funds are among the greatest investment
options. When compared to investing directly in the capital markets, they are more
affordable because of the advantages of scale in terms of brokerage, custodial, and other
fees.

 Liquidity:
Except for equity linked savings schemes, which have a lock-in period of 3 years, you
can receive your money back from open-ended scheme from the mutual fund itself at
rates based on net asset value. Close-ended schemes allow you to sell your units on a
stock exchange at the going rate or take advantage of the direct buyback option that
some close-ended and interval plans provide you from time to time at NAV-related
rates.

 Transparency:
Account statements provide you with regular updates on the value of your investment,
and portfolio disclosures, which show the percentage invested in each asset class,
provide disclosures on the investments made by your plan. The documents relating to
the schemes detail each scheme's asset allocation and investment plan.

Disadvantages:

 High Expenses Ratios and Sales Charges:

Sales charges and cost ratios for mutual funds can go out of control if you aren't paying
attention to them. When investing in funds, which are thought to be on the higher cost
end and have expense ratios higher than 1.50 %, exercise extreme caution. Be on the
lookout for 12b-1 sales charges and advertising expenses in general. There are several
reliable fund companies that don't charge sales commissions. Charges lower total
investment returns.

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  Management Abuses:
If your management is abusing their authority, churning, turnover, and window dressing
may happen. This involves making irrational trades, replacing items too frequently, and
selling losers before the quarter's end to balance the books.

 Tax inefficiency:
Whether they like it or not, investors are forced to accept capital gains distributions
from mutual funds. Investors frequently get distributions from the fund that are an
uncontrollable tax event because of the turnover, redemptions, gains, and losses in
security holdings during the year.

 Poor Trade Execution:

You will receive the same closing price NAV for your purchase or sell on the mutual
fund if you execute your deal before the deadline for same-day NAV. Mutual funds
offer a poor execution method for investors seeking faster execution timeframes,
perhaps due to short investment horizons, day trading, or market timing.

1.3 History of Mutual Funds:

For a developed economy, a strong financial market with wide participation is crucial.
India's first mutual fund, Unit Trust of India (UTI), was established in 1963 with this broad
goal in mind at the initiative of the Indian government and Reserve Bank of India in order
to promote saving, investing, and participation in the income, profits, and gains generated
by the corporation through the purchase, holding, management, and sale of securities.

The MF Industry has expanded tremendously in recent years. The development of mutual
funds in India can be broadly divided into the following five phases:

 First Phase: – 1964 – 1987

In India, the first mutual fund company, UTI, was established in 1963 by a parliamentary act,
and it operated under the administrative and regulatory control of the Reserve Bank of India
(RBI). The Industrial Development Bank of India (IDBI) replaced the RBI as the regulatory
and administrative authority over UTI in 1978 after it was delinked from the RBI. Unit Scheme

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1964 (US '64) was UTI's initial programme. UTI had $6,700 crores in assets under management
by the end of 1988. (AUM).

 Second Phase: - 1987 = 1993 – Entry of Public sector mutual funds

Public sector banks, Life Insurance Corporation of India (LIC), and General Insurance
Corporation of India launched public sector mutual funds in 1987. (GIC). The first "non-UTI"
mutual fund was created in June 1987 by SBI Mutual Fund, which was followed by Canbank
Mutual Fund in December 1987, Punjab National Bank Mutual Fund in August 1989, Indian
Bank Mutual Fund in November 1989, Bank of India in June 1990, and Bank of Baroda Mutual
Fund in June 1990. (Oct. 1992). While GIC had formed its mutual fund in December 1990,
LIC had done so in June 1989. The MF sector had 47,004 crores in assets under management
at the end of 1993.

 Third Phase: - 1993 – 2003 – Entry of Private sector mutual funds

With the foundation of SEBI in April 1992 to safeguard the interests of investors in the
securities market, to encourage its growth, and to regulate it, the Indian securities market gained
more significance.

The first set of SEBI Mutual Fund Regulations, which apply to all mutual funds with the
exception of UTI, were established in 1993. The first private sector MF registered in July 1993
was the former Kothari Pioneer, which has since amalgamated with Franklin Templeton MF.
A new era in the Indian MF business began in 1993 with the introduction of private sector
funds, offering Indian investors a greater selection of MF products. A complete set of
restrictions, the SEBI (Mutual Fund) Regulations, 1996, which are still in effect, were revised
and added to the original SEBI MF Regulations in 1996.

Over the years, more and more international sponsors established mutual funds in India,
increasing the number of MFs. During this time, the MF sector also saw a number of mergers
and acquisitions. There were 33 MFs as of the end of January 2003, with a combined AUM of
Rs. 1,21,805 crores, of which UTI alone had an AUM of Rs. 44,541 crores.

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  Fourth Phase: - Since February 2003 – April 2014

After the Unit Trust of India Act of 1963 was repealed in February 2003, UTI was divided into
the Specified Undertaking of the Unit Trust of India (SUUTI) and the UTI Mutual Fund, which
operates in accordance with the SEBI MF Regulations. The former UTI was split into two, and
a number of private sector fund mergers occurred, ushering in the MF sector's fourth phase of
consolidation.

Following the global financial crisis in 2009, stock markets all across the world collapsed,
including those in India. The majority of investors who entered the capital market at its peak
lost money, which seriously weakened their faith in MF products. The Indian MF Industry had
already been negatively impacted by the global financial crisis and the SEBI's elimination of
Entry Load. For more than two years, the industry struggled to recover and transform itself in
an effort to maintain its economic viability, as evidenced by the slow growth in MF Industry
AUM from 2010 to 2013.

 Fifth Phase: - Since May 2014

In order to "re-energize" the Indian mutual fund industry and increase MFs' penetration, SEBI
introduced a number of progressive measures in September 2012. This was done in recognition
of the low penetration of MFs, particularly in tier II and tier III cities, and the need for greater
alignment of the interests of various stakeholders.

After the worldwide meltdown, things started to turn around thanks to the measures, and things
dramatically got better once the new government was established at the centre.

Since May 2014, the sector has experienced consistent inflows, growth in AUM, and an
increase in the number of investor folios (accounts).

o The industry's AUM reached the landmark of Rs. 10 trillion (ten lakh crore) on May
31, 2014, and in just three years, it had expanded more than twofold. In August 2017,
it reached the milestone of Rs. 20 trillion (twenty lakh crore). In November 2020, the
AUM size surpassed 30 trillion (or 30 Lakh) for the first time.
o The whole size of the Indian MF Industry increased more than five times in just ten
years, from Rs. 6.89 trillion on June 30, 2012, to Rs. 35.64 trillion on June 30, 2022.

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 o The AUM of the MF Industry increased roughly twice during the course of five years,
from Rs. 18.96 trillion to Rs. 35.64 trillion as of June 30, 2022.
o From Rs. 5.82 crore folios as of June 30, 2017, to Rs. 13.47 crore folios as of June 30,
2022, the number of investor folios has increased by more than two times in just five
years.
o In the five years since June 2017, Rs. 12.74 lakh new folios have been uploaded on
average per month.

The regulatory actions made by SEBI to re-energize the MF Business in September 2012 and
the support from mutual fund distributors in growing the retail base have had a dual effect that
has allowed the industry to increase in size.

The last mile connection between investors and MF Distributors has been greatly needed,
especially in smaller towns. This connection not only allows investors to invest in suitable
schemes but also supports investors in staying on track during periods of market volatility so
that they can benefit from mutual fund investing.

Systematic Investment Plans (SIP) have become increasingly popular over the years thanks in
large part to MF distributors. The number of SIP accounts surpassed the one crore mark in
April 2016, and as of June 30, 2022, there were 5.55 crore SIP accounts in existence.

1.4 Reliance Mutual Fund Schemes:

1. Nippon India Large Cap Fund:

Nippon India Mutual Fund has replaced Reliance Mutual Fund starting of October 2019.
Reliance Nippon Asset Management now holds a majority (75%) shareholding owned by
Nippon Life (RNAM). The organization's management and organisational structure won't
change as business operations continue.

The large cap fund of the Nippon is split in two. By investing in shares of large-cap firms, it
aims to achieve its main goal of long-term capital appreciation. While generating steady returns
through investments in money market and fixed income instruments is its secondary goal. This
Nippon Mutual Fund investment strategy looks to make investments in businesses with proven
business models and steady free cash flows that are either market leaders or have the potential

16
to become market leaders. It also makes sure that money is invested in shares of fast-growing
companies with fair valuations and excellent returns on equity.

2. Nippon India Money Market fund:

A money market mutual fund product offered by Nippon India Mutual Fund is called Nippon
India Money Market Fund Direct-Growth. Since it was established on January 1, 2013, this
fund has been around for nine years and six months. Nippon India Money Market Fund Direct-
Growth is a medium-sized fund in its category with assets under management (AUM) of
Rs. 9,123 Crores as of June 30, 2022. The cost ratio for the fund is 0.18%, which is about
average for Money Market products.

The 1-year returns on Nippon India Money Market Fund Direct-Growth are 4.05%. It has
generated 7.29% yearly returns on average since debut. The reliability of returns from the
Nippon India Money Market Fund Direct-Growth scheme is comparable to that of the majority
of funds in its class. It performs better than average at limiting losses in a down market.

The fund has a very strong credit history, meaning that it has lent to excellent-quality
customers. The default risk in this fund is higher than the category average because the majority
of funds in this category lend to stronger borrowers. The Reserve Bank of India, HDFC Bank
Ltd., Housing Development Finance Corpn. Ltd., Vedanta Ltd., and Mahindra & Mahindra
Financial Services Ltd. are among the fund's top holdings.

3. Nippon India Arbitrage fund:

A mutual fund strategy for arbitrage, Nippon India Arbitrage Fund Direct-Growth is offered
by Nippon India Mutual Fund. Since it was established on January 1, 2013, this fund has been
around for nine years and six months. Nippon India Arbitrage Fund Direct-Growth is a
medium-sized fund in its category with Rs. 10,809 Crores in assets under management (AUM)
as of June 30, 2022. The fund's 0.34% fee ratio is comparable to what most other arbitrage
funds charge. The fund now allocates 0.46% to equity and 28.77% to debt.

The 1-year Direct-Growth returns for the Nippon India Arbitrage Fund are 4.23%. It has
generated returns of 6.97% on average since start. The reliability of returns from the Nippon
India Arbitrage Fund Direct-Growth plan is comparable to that of the majority of funds in its
class. It performs better than average at limiting losses in a down market.

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The Financial, Services, Technology, Consumer Staples, and Automobile sectors make up the
majority of the equity part of the fund's investments. Compared to other funds in the category,
it has acquired less exposure to the financial and services sectors.
The fund's debt portion has a low credit rating, which indicates that the borrowers it has lent
money to are not of very high calibre. The top five holdings of the fund are: Adani Enterprises
Ltd., Reliance Liquidity Fund - Direct Plan, Reliance Liquidity Fund - Treasury Plan - Direct
Plan, and Reserve Bank of India.

1.5 ICICI Prudential Mutual Funds Schemes:

1. ICICI Prudential Bluechip Fund:

A fund managed by ICICI Prudential (Erstwhile ICICI Prudential Focused Bluechip Equity
Fund) Long-term capital growth is the goal of the ICICI Prudential Bluechip Fund, formerly
known as the ICICI Prudential Focused Bluechip Equity Fund. The collected fund money is
mostly invested in equities and equity-related securities of large-cap firms in an effort to
achieve this goal. This programme from ICICI Prudential Mutual Fund employs a benchmark
hugging technique to ensure that the portfolio is well-diversified and, as a result, lowers the
risk of concentration.

The organisation also puts money into projects that have a track record of success, are
fundamentally sound, and are able to generate reliable long-term profits. The programme builds
its portfolio using the Nifty 50 as a benchmark.

2. ICICI Prudential Liquid Fund:

ICICI Prudential Mutual Fund's ICICI Prudential Liquid Fund Direct Plan-Growth is a liquid
mutual fund strategy. Since it was established on January 1, 2013, this fund has been around
for nine years and six months. As of 30 June 2022, ICICI Prudential Liquid Fund Direct Plan-
Growth was a medium-sized fund in its category with assets under management (AUM) of
Rs. 43,502 Crores. The fund's fee ratio of 0.2% is comparable to that of the majority of other
liquid funds.

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The 1-year growth returns for the ICICI Prudential Liquid Fund Direct Plan are 3.71%. It has
generated returns of 6.82% on average since start. The ability of the ICICI Prudential Liquid
Fund Direct Plan-Growth scheme to deliver returns consistently is comparable to that of the
majority of the funds in its class. It has a mediocre capacity to limit losses in a down market.

The fund has a very strong credit history, meaning that it has lent to excellent-quality
customers. The default risk in this fund is higher than the category average because the majority
of funds in this category lend to stronger borrowers.
The Reserve Bank of India, Indian Bank, National Bank for Agriculture & Rural Development,
and National Thermal Power Corp. Ltd. are the fund's top holdings.

3. ICICI Prudential Balanced Advantage fund:

A dynamic asset allocation mutual fund strategy offered by ICICI Prudential Mutual Fund is
called ICICI Prudential Balanced Advantage-Growth. This fund was established on August 11,
2006, making it 15 years and 8 months old. ICICI Prudential Balanced Advantage-Growth is a
medium-sized fund in its category with assets under management (AUM) of Rs. 40,064 Crores
as of June 30, 2022. The fund has a higher expense ratio than the majority of other Dynamic
Asset Allocation funds, at 1.62%. Currently, the fund is allocated 32.51% to debt and 39.66%
to equities.

The 1-year growth returns for ICICI Prudential Balanced Advantage fund are 8.61%. It has
generated returns of 10.92% on average since start. Every seven years, the fund has doubled
the amount invested in it. The ability of the ICICI Prudential Balanced Advantage-Growth
scheme to deliver returns consistently is comparable to that of the majority of funds in its class.
It has a mediocre capacity to limit losses in a down market.

The equity part of the fund generally invests in the areas of the financial, energy, automotive,
technology, and consumer staples industries. Compared to other funds in the category, it has
less exposure to the financial and energy industries.
The fund's debt portion has a low credit rating, which indicates that the borrowers it has lent
money to are not of very excellent quality.
GOI, Reserve Bank of India, Reliance Industries Ltd., Infosys Ltd., and HDFC Bank Ltd. are
the top 5 holdings of the fund.

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1.6 Research Objectives:

1. To study the recent trends in mutual funds.

2. To study the selected schemes offered by Reliance mutual fund and ICICI Prudential
mutual fund
3. To analyse the performance of selected schemes of Reliance mutual fund and ICICI
Prudential mutual fund.

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 2. About the Organizations

Reliance Securities also known as Reliance smart money. Reliance Securities is one of the
Indian largest broking houses, was established in 2005. It is a broking arm of Reliance
Capital. It is one of the Indian largest broking houses with over 1 million customers and a
pan india presence at more than 1,700 locations. The company is a corporate member of both
the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) and provide
access to equities, derivatives, IPO’s, mutual funds, bonds, corporate FD’s and insurance.
The large array of financial offerings helps customers fulfilling their investment objectives
on one platform.

It aims to secure online trading platform and investment activities in a cost effective and
convenient manner. To enable wider participation. It also provides the convenience of trading
offline through variety of means including live chat, call and trade, Branch dealing desks and
network of affiliates. Focus on timely and error free execution represents its core strength.
They have the best-in-class research aim, high degree of compliance with stock exchange
regulation, ethical business standards and strong risk management capabilities. It positions
itself amongst strong and innovative brands in the financial services space. It intends to
change the way people transact in financial markets and avail financial services.

Reliance securities also aims a range of financial product, facilitated with an array of financial
planning tools, so that you can invest as per your risk appetite.

Reliance Securities product includes:

1. Broking and Distribution

2. Third Party Insurance
3. Business Associate (BA)/ Business Partner (BP)

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1. Broking and Distribution:
In this firm there are many products such as Equities, Derivatives, Currency,
IPO’s, Mutual Fund, Bonds and Corporate FD’s. In Equities firstly open demat
account and then download the app for trading and there are no charges for the
first year. In equities if you are trade in intraday, they have charges i.e., 0.025%
and in delivery they have the charges i.e., 0.25% and also have the brokerages.
In the Derivatives market they have many options that is Equity Future &
Options, Currency Future & Options, Commodities options and Interest Rate
Future. They provide IPO services; they even inform about upcoming IPOs in
details regarding all the IPO. In Mutual fund they have the Equity fund, Debt
fund, Commodity fund and Hybrid fund for the betterment of you. In bonds they
have safety, guarantee, less interest, less tax benefits, exchange traded and also
have withdrawal of the money. In Corporate FD’s they have the better interest
rates, highly liquidity and flexible payments for the people and also risks
involved in the unsecured deposits.

2. Third party insurance:

In this third-party insurance they have Care health insurance, Manipal Cigna
Insurance, DFC Life Sanchay Plus and Liberty General insurance for the
betterment of the people through this organizations.

a. Care Health Insurance:

Care Health insurance is a specialized Health insurer offering health
insurance services to employees of corporates, individual customers and
for financial inclusion as well. With Care Health Insurance operating
philosophy being based on the principal tenet of consumer centricity, the
company has consistently invested in the effective application of
technology to deliver excellence in customer servicing, product
innovation and value for money services.
It currently aims products in the retail segments for Health Insurance,
Critical Illness, Personal Accident, Top up Coverage, etc.

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 b. Manipal Cigna Insurance:
Manipal Cigna Insurance they have best insurance policy for the people
and as the commitment to the family health and well-being. Through a
wide array of comprehensive health care plans that provide easy and
lifelong access to quality healthcare, they are focused on protecting and
improving your financial, physical and emotions health.

c. HDFC Life Sanchay Plus:

HDFC life Sanchay Plus they have best insurance policy and claim ratio
and also have claim settlement. It is a non-participating, non-linked
saving insurance plan, they have Life insurance coverage is available in
the product. This document has no monetary value at any time and it is
not proof of any contract with HDFC life insurance company limited.
They have many plans like Investment plans, Health plans, Saving plans,
Children plans and the Retired plans for the betterment of the people.

3. Business Associate (BA)/ Business Partner (BP):

In this organization there is Business Associate in this they 70:30 ratio and if
any wants open the demat account on equity market they give the commission
as well as on the commodities and derivatives market. You will became the
partner with the reliance securities. In the Business Partner there is a commercial
entity with which another commercial entity has some form of alliance. These
relationships may be a contractual, exclusive bond in which both entities commit
not to ally with the third parties. It is an individual who is involved in a legal
business partnership with other individual to manage business as co-owners.

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 3. Review of Literature

 In their 2004 article "An empirical investigation of investors' opinions of mutual

funds," Jaspal Singh and Subhash Chander Due to the anticipation of earning a
higher return than with other investment products and the perception that they are
beneficial for small investors, investors believe mutual funds to be a better outlet for
investing than others. The investor who falls into the salaried and professional
categories and falls between the age range of 20 to 35 prefers daily disclosure by the
funds of their net asset worth. Investors are discouraged from continuing to park
their money in mutual funds because the funds have underperformed in comparison
to expectations and the management has been ineffective.
 In their paper "An application of multidimensional scaling model towards Brand
Positioning of Mutual Fund: A case study of Tax Saving Scheme," (Tapan k. Panda
& Nalini Pravah Tripathy) came to the conclusion that the general perception of
investors is that mutual funds have defrauded ordinary investors. Other than UTI,
the mutual fund programme leaves them disappointed. Few sane, knowledgeable
investors can be persuaded in relation to the stock market. Only a small number of
private sector funds have begun to draw the attention of investors with spectacular
growth. Mutual funds have undergone both qualitative and quantitative
developments that are notable. Therefore, a regulatory structure and method for
swiftly identifying wrongdoing by mutual funds and then swiftly punishing such
behaviour are urgently required.
 In 2016, Satish Kumar Rangasamy and others looked into the performance of mutual
funds in India. They help retail investors make decisions and assess the performance
of mutual funds. The investigator can better comprehend the various mutual fund
categories and the top performing mutual fund from a list of mutual funds due to
this study. They employed a variety of performance assessment methods, including
ranking, average return, standard deviation, and sharpe ratio. The investor will be
able to invest in the appropriate categories of mutual funds due to this.
 Biswas (2013) specifically aimed to investigate the performance of various equity
fund schemes chosen from the Indian mutual fund industry. He researches the top
ten and most significant equities mutual fund returns over the previous ten years
(2009-2013).

24
 (Jana Hili, Simon Grima, and Desmond Pace, 2016) They concentrated on two key
areas in their study: first, making major contributions to the literature, and second,
the research's practical application. Naturally, academics and researchers have
focused their attention on analysing the actions of fund managers who are mostly
based in mature and efficient economies, leaving the rising region largely
unexplored in this regard. (Rao, 2015), In this study, five portfolio performance
assessment metrics—Beta, Standard Deviation, Sharpe Ratio, Treynor Ratio, and
Jensen's Alpha—will be used to assess the fund's performance. The CNX NIFTY
Index is used as the benchmark in here. The research study by (Priyan, 2018) is
crucial for evaluating performance since it uses Sharpe's style-exposure analysis to
examine the investing strategy of large size equities mutual funds (1992). Over the
period of January 2011 to April 2015, the restricted quadratic optimisation factor
model is employed in the investigation. A rolling-period exposure style study of the
funds has been performed using a 36-month rolling-period window in order to
evaluate the dynamic drift in the style of a fund. The study's findings indicate that
the fund managers have a reasonable level of active management and decent
selection skills. (Gurunathan, 2013) examined how the expansion of large cap
mutual funds has been accompanied by the development of novel products and
servicing techniques. Regulators will need to strike a balance between properly
controlling risks and refraining from enacting pointless regulations. (Jain, 2012),
This research study was conducted over a 15-year period, from April 1997 to April
2012, with the performance examination of 45 equity mutual fund schemes offered
by two public sectors firms and two private ownership companies as the primary
emphasis. The CAPM model, which focuses on the link between risk and return, has
been utilised for performance analysis. (BHATT, 2015), According to this study,
corporate investors have made significant investments in debt funds, whilst retail
investors have a stronger preference for equity and balanced investment strategies.
The study's findings will also help the fund manager, policy makers, and AMC
design or adapt new schemes or current mutual fund schemes in accordance with the
investment sizes of the available investor groups.
 By comparing the fund return to the return on a market portfolio with a comparable
risk, Haslem (1988) predicted fund performance. To measure the fund's portfolio

25
 risk in relation to the market's portfolio risk, the beta co-efficient of the fund is
employed.
 Wherever performance evaluation is used, there will always be two essential
components: (a) a measure of return; and (b) a measure of risk, over a specific time
horizon. This is according to Hudson (1997). Only a high-quality reporting standard
and well-founded rules for computing net asset values allow for accurate evaluation
and comparison (NAV).
 In their 2000 study, Bers and Madura looked at the performance persistence of 384
domestic closed-end funds in the US. To evaluate the consistency of performance
over periods, they used the regression test. For each type of closed end fund, they
defined net asset value and market price-based performance persistence over 12, 24,
and 36-month holding periods. Over various holding durations and amongst fund
groupings, the outcomes vary slightly.
 In his article "Performance Evaluation of Indian Mutual Funds," Narayan Rao
(2002) performed research to see whether the majority of mutual fund schemes were
capable of exceeding investors' expectations for returns.
 In her analysis of fund managers' performance, Soumya Guha (2008) revealed that
on average, Indian equities fund managers were unable to surpass their style
benchmarks (William Sharpe ratio), highlighting this as one of the managers' flaws.
 Indian equity-based mutual fund performance was evaluated by Sathya Swaroop
Debashish in 2009. A total of 23 proposals were examined between April 1996 and
March 2009 (13 years). Mean return, beta risk, coefficient of determination, sharp
ratio, Treynor ratio, and Jensen alpha were used as the basis for the analysis. The
initial research was conducted using returns, and then a comparison between market
returns and return on schemes was made. It was determined that Franklin Templeton
and UTI mutual fund schemes had great results in the public and private sectors,
respectively.
 In their 2012 study, Nimalathasan and Kumar Ghandhi examined the financial
performance analysis of particular banks' equity diversified and equity mid-cap
mutual fund schemes. Their research is to analyse the financial performance of
particular mutual fund schemes using ratio analysis and statistical metrics (Standard
Deviation, Beta, and Alpha).

26
 The discussion paper "Market transparency and the marking precision of bond
mutual fund managers" by Cici G et al. (2014) noted that the TRACE (Trade
Reporting and Compliance Engine) system, which increases transparency, was
linked to significant and statistically decreased cross fund bond mark dispersion.
They also discover some evidence, although only for the pre-TRACE era, that issuer
initiations into Markit's CDS (Credit Default Swap) spread database contributed to
a reduction in bond mark dispersion. These findings reinforce the idea that
professional fund managers as well as ordinary investors are "working mainly in the
dark."
 Divya K. (2012) suggested that investment managers whose performance is below
benchmark index should take a second look at their investment strategy and asset
allocation in the article "A Comparative analysis of performance of Selected Mutual
Funds in India" from the International Journal of Marketing and Technology. For
better results, investing strategies should be revised in accordance with market ups
and downswings. The regulator should establish uniform benchmark standards that
will be useful to asset management organisations in order to boost the effectiveness
and appeal of mutual funds.
 Goel S. et al. (2012) restate that the stock selection skills and protracted tenure of
fund managers are favourable for the performance of mutual funds in their article
"A Review of Performance Indicators of Mutual Funds" from Researchers World -
Journal of Arts, Science & Commerce. The ownership style of the mutual fund and
its performance are related. Due to their superior understanding of the local market,
local mutual funds outperform overseas mutual funds in terms of performance.
Larger asset-based mutual fund businesses outperform smaller asset-based
companies in terms of performance.
 Gremlin L. (2005) provided comprehensive information regarding the operation of
the mutual fund industry in his book "Mutual Fund Industry Handbook - A
Comprehensive Guide for Investment Professionals." It has also discussed the
numerous difficulties that different industry professionals have to deal with.
Everybody who has a sincere interest in the sector can benefit from the book's wide-
ranging and thorough presentation of information and knowledge.
 In an article titled "Market Penetration and Investment Pattern of Mutual Fund
Industry" from the International Journal of Advanced Research in Management and

27
 Social Sciences, Iqbal N. (2013) notes that although mutual funds are primarily
present in urban areas, they have begun to expand into rural markets through new
product lines, new strategies for rural market penetration, and new awareness
campaigns. There will be a significant influx of investors when the rural economy
combines with the urban market. The accountability of different intermediaries,
particularly mutual funds, will multiply.
 The Indian economy's fundamentals are relatively strong, and Jani D. and Jain R.
(2013) reiterated this point in their article "Role of Mutual Funds in Indian Financial
System as a Key Resource Mobilizer" from Abhinav Journal (International Monthly
Referred Journal of Research in Management & Technology). Mutual Funds will be
a crucial resource mobilizer for the Indian financial sector as the economy expands.
In the foreseeable future, the Indian mutual fund industry is expected to have strong
expansion.
 Investors in mutual funds follow past performance, despite the fact that performance
is not consistent over time, according to Janks S. (2010) in his Discussion Paper on
"Are there disadvantaged clienteles in mutual funds?" In other words, investors
purchase mutual funds that have historically produced strong returns. Investors are
hesitant to take their money out of the worst performing funds, on the other hand.
This behaviour has frequently been linked to mutual fund investors' irrationality.
Because strong historical success is an indicator of managerial skill, sophisticated
investors logically pursue it. The investor makeup of the funds with the worst
performance did not significantly differ from that of the funds with average
performance.
 The Investor's Guide to Fidelity Funds - Winning Strategies for Mutual Fund
Investing by Martin P. and McCann B. (1998) provides excellent guidance for
investors on matters pertaining to mutual fund investing. In order to outperform the
market averages, they have encouraged investors to concentrate on areas of the
global economy that offer the highest potential for profit. Combining this strategy
with the security offered by the inherent diversity of mutual funds, mutual funds are
transformed into an investing vehicle with all the benefits of trading individual
securities and none of the drawbacks. Create a plan for choosing which funds to buy
and sell, and when, just like with any other investment. These choices shouldn't be
made based on feelings or intuition.

28
 Despite market volatility, all funds fared well during the study period, according to
an article by Narayanasamy R. and Rathnamani V. (2013) from the International
Journal of Business and Management Invention titled "Performance Evaluation of
Equity Mutual Funds (on selected Equity Large Cap Funds)." The performance of
all chosen mutual funds was impacted by the decline in NIFTY during the 2011
calendar year. Investors should take into account statistical factors like alpha, beta,
and standard deviation in addition to NAV and total return to guarantee that mutual
funds perform consistently.
 The majority of investors are aware of the various mutual fund schemes, according
to Prabhu G and Vechalekar N.M. in their study from the IOSR Journal of
Economics and Finance titled "Perception of Indian Investor towards Investment in
Mutual Funds with Special Reference to MIP Funds." Investors in mutual funds are
typically between the ages of 19 and 55. The investors are classified as having
incomes between Rs 30,000 and Rs 70,000 and above. Due to tax advantages and
portfolio diversification, investors favour mutual funds. Investor interest in the MIP
fund has been sparked by the funds' consistent returns.
 A mutual fund is a potent 29 instrument to sustain the Indian economy, as underlined
by Nair R. K. (2014) in the paper "Indian Mutual Fund Market - A tool to stabilise
Indian Economy" from the International Journal of Scientific and Research
Publications. Mutual fund products are essential in bringing together investors'
dispersed savings and directing them toward the nation's infrastructure development.
By fostering the mutual fund industry in the nation, the banks and financial
institutions are also playing a significant role.
 According to Santhi N.S. and Guru Nathan K. (2013) in their article "The growth of
Mutual Funds and Regulatory Challenges" from the Indian Journal of Applied
Research, regulators are closely monitoring any potential effects of mutual fund
products on financial stability and market volatility because the mutual fund industry
has experienced rapid growth in recent years. New products and servicing
techniques have been developed in tandem with the expansion of mutual funds.
Regulators will need to strike a balance between properly controlling risks and
refraining from enacting pointless regulations.
 The International Journal of Research in Management published an article by Singh
B K (2012) titled "A study on investors' attitude towards mutual funds as an

29
 investment choice" that reiterates the importance of educating the general public
about mutual funds. People must be made aware of the special characteristics of
investing in mutual funds. The advantages offered by mutual funds, such as return
potential and liquidity, have been seen by existing investors as being the most
alluring, followed by flexibility, transparency, and affordability.
 In their article "Investing in Mutual Fund: An Overview" from the Asian Research
Journal of Business Management, authors Sharma R. and Pandya N. K. (2013) noted
that there are still many people who are unclear about how mutual funds operate and
as a result have not yet formed a firm opinion about investing in mutual funds.
Return potential and liquidity have been seen as most alluring by current investors.
In India, there is a lot of room for mutual fund growth. Instead of taking into account
whether something is in the private or public sector, people should base their
decisions on the performance of mutual funds.
 In an article titled "Analysis of the Risk and Return relationship of Equity based
Mutual Fund in India" from the International Journal of Advancements in Research
& Technology, Sharma N. and Ravikumar R. (2013) mentioned that their study used
the Capital Asset Pricing Model to examine the performance of Equity based mutual
fund schemes (CAPM). Mutual funds for the public and private sectors have shown
strong performance throughout time. However, when performance over the previous
15 years was compared, it was shown that private sector mutual funds outperformed
public sector mutual funds. In addition to outperforming public sector mutual fund
schemes, private sector mutual fund schemes were also determined to be less risky.
 The International Journal of Innovative Research in Science, Engineering and
Technology's "Evaluating the Performance of some selected open-ended equity
diversified Mutual funds in Indian mutual fund industry" by Vasanth S. et al. (2013)
notes that the risk tolerance of an investor is crucial when choosing a mutual fund.
Investors should base their decision to invest in mutual funds on their investment
aim and evaluate the fund using a variety of parameters, including market risk,
variations in return, deviations in return, etc.
 The majority of people choose balanced funds and debt funds, according to Sehdev
R. and Ranjan P. (2014) in their work "A study on Investor's perception towards
mutual fund investing" from Scholars Journal of Economics, Business, and
Management. Following that, investors hunt for sector and equity diversified funds.

30
 The advantages and transparency, returns, redemption period, liquidity, and
institutional investor activity are the driving forces behind investors' preference for
mutual funds as an investment alternative. People rely more on the internet than any
other media outlet for information on mutual funds.
 Equity funds are performing better than debt funds, according to Srivastava S and
Malhotra S (2015) in their work "A Paradigm Shift in Risk Measuring Tools of
Mutual Fund Industry" from the International Journal of Informative & Futuristic
Research. Risk and return were discovered to have an excellent linear relationship.
When analysing the risk of certain funds, fund managers might use the Calmar ratio
and the safety-first ratio. No fund is risk-free, so investors should diversify their risk
by investing in equities and equity-related securities.

31
 4. Data Collection

Data interpretation is the process of reviewing data through some predefined processes
which will help assign some meaning to the data and arrive at a relevant conclusion. It
involves taking the result of data analysis, making inferences on the relations studied, and
using them to conclude.

4.1 Primary Data:

Following is the survey taken to understand customer behaviour towards Reliance and
ICICI Prudential mutual funds schemes.

Gender:

Gender No. of Respondents

Male 58
Female 42
Total 100

Interpretation:

Above pie chart represent analysis of gender

The respondents were 58 Male is 58% and 42 Female that 42%.

32
Age:

Age No. of Respondents

20 = 30 51
31 – 40 21
41 – 50 17
Above 50 11
Total 100

Interpretation:

Total population was divided into four different age group and as many as 51 respondents
were between the age group of 20 – 30. 21 respondents were between the age group of 31
– 40. 17 respondents were between the age group of 41 – 50 and 11 respondents were
between the age group of Above 50.

33
Occupation:

Occupation No. of respondents

Employee 18
Business 23
Students 41
Retired 13
Housewife 5
Total 100

Interpretation:

In occupation 41 people are Students, 23 people are doing Business, 18 people are
Employee, 13 people are Retired and 5 female people are Housewife.

34
Annual Income:

Annual Income No. of respondents

Below 1 lakh 41
1 – 3 lakhs 22
3 – 5 lakhs 25
Above 5 lakhs 12
Total 100

Interpretation:

In the above pie diagram 41% are annual income Below 1 lakh, 22% were between the 1 –
3 lakhs, 26% people were between the 3 – 5 lakh and 12% are Above 5 lakhs.

35
In which investment option do you invest?

Response Responses in %
Saving Account 31
Fixed Deposit 19
Real Estate 17
Mutual Funds 18
Gold/Silver 15
Total 100

Interpretation:

In this pie chart people are invest more in Saving Account is 31% then in Fixed Deposit is
19% then in Real Estate is 17% then in Mutual Funds is 18% and last 15% in Gold/Silver.

36
Do you have knowledge about investment in mutual funds?

Responses Responses in %
Yes 68
No 32
Total 100

Interpretation:

Around 68% people saying Yes and the rest of the people saying No for having knowledge
of mutual funds.

37
Do you make investment?

Response Responses in %
Yes 58
No 42
Total 100

Interpretation:

Around 58% people saying Yes and the rest of the people saying No for the making an
investment.

38
Awareness of Reliance mutual fund schemes and ICICI Prudential mutual schemes?

Responses Responses in %
Yes 62
No 38
Total 100

Interpretation:

Around 62% people saying Yes and rest of the people are saying No for the Reliance mutual
schemes and ICICI Prudential mutual schemes.

39
If you have to invest then where you will make investment?

Responses Responses in %
Nippon India Large Cap fund 12
Nippon India Money Market fund 21
Nippon India Arbitrage fund 17
ICICI Prudential Bluechip fund 21
ICICI Prudential Liquid fund 14
ICICI Prudential Balanced Advantage fund 15
Total 100

Interpretation:

In this pie diagram people saying that 12% is Nippon India Large Cap fund, 21% is Nippon
India Money Market fund and 17% is Nippon India Arbitrage fund of Reliance mutual funds
scheme and also for the ICICI Prudential mutual funds scheme people saying that 21% is
ICICI Prudential Bluechip fund, 14% is ICICI Prudential Liquid fund and 15% is ICICI
Prudential Balanced Advantage fund for making an investment.

40
According to you in which mutual fund you will get high returns?

Responses Responses in %
Nippon India Large Cap fund 13
Nippon India Money Market fund 19
Nippon India Arbitrage fund 20
ICICI Prudential Bluechip fund 19
ICICI Prudential Liquid fund 14
ICICI Prudential Balanced Advantage fund 15
Total 100

Interpretation:

In this pie diagram people saying that 13% is Nippon India Large Cap fund, 19% is Nippon
India Money Market fund and 20% is Nippon India Arbitrage fund of Reliance mutual funds
scheme and also for the ICICI Prudential mutual funds scheme people saying that 19% is
ICICI Prudential Bluechip fund, 14% is ICICI Prudential Liquid fund and 15% is ICICI
Prudential Balanced Advantage fund according to people will get high return in this mutual
fund schemes.

41
What is the most important parameter according to you?

Responses Responses in %
High returns 34
Safety 27
Liquidity 26
Flexibility 13
Total 100

Interpretation:

According to people the most important parameter of 34% is High returns, 27% is Safety,
26% is Liquidity and 13% is Flexibility.

42
In which of the mutual fund there is more risk?

Responses Responses in %
Nippon India Large Cap fund 13
Nippon India Money Market fund 16
Nippon India Arbitrage fund 21
ICICI Prudential Bluechip fund 20
ICICI Prudential Liquid fund 16
ICICI Prudential Balanced Advantage fund 14
Total 100

Interpretation:

According to people in mutual fund which is riskier are Nippon India Arbitrage fund is
21%, ICICI Prudential Bluechip fund is 20%, Nippon India Money Market fund is 16%,
ICICI Prudential Liquid fund is 16%, ICICI Prudential Balanced Advantage fund is 14%
and Nippon India Large Cap fund.

43
From how many years you are investing in mutual funds?

Responses Responses in %
1 to 5 years 41
5 to years 20
10 to 15 years 21
15 to 20 years 18
Total 100

Interpretation:

According to people 41% is 1 to 5 years, 20% is 5 to 10 years, 21% is 10 to 15 years and

rest of the 18% is 15 to 20 years are investing in mutual funds.

44
Do you prefer high risk in earning high returns in mutual funds?

Responses Responses in %
Yes 60
No 40
Total 100

Interpretation:

Around 60% people saying Yes and rest of the people i.e. 40% people saying No for the
high risk in earning of high returns in mutual fund.

45
How is your investment pattern?

Responses Responses in %
Monthly 26
Once in six months 28
Once in a year 23
Very rare 23
Total 100

Interpretation:

According to people they are invested in a investment pattern i.e. Monthly is 26%, Once in
six months is 28%, Once in a year is 23% and 23% are Very rare.

46
While investing your money which factor you prefer most?

Responses Responses in %
Liquidity 18
Low risk 23
High returns 38
Company reputation 21
Total 100

Interpretation:

According to people the money they prefer most is 38% are High returns, 23% are Low
risk, 21% are Company reputation and 18% are Liquidity.

47
4.2 Secondary Data:

The project has used three major types of funding.

4.2.1 Equity Funds

1. Nippon India Large Cap Fund

2. ICICI Prudential Bluechip Fund

Nippon India ICICI Prudential

Large Cap Fund Bluechip Fund

Fund Manager Sailesh Raj Bhan Anish Tawakley

Ashutosh Bhargava Vaibhav Dusad

Priyanka Khandelwal

Asset Under 10584.8 29981.07

Management
(AUM) in crores
Min Investment 100 100
(Rs)
Fund started 2nd January 2013 23th May 2003

Net Asset Value 50.06 63.58

(NAV)

Total securities 60 74

Top 5 holdings 30.85% 39.04%

48
Top 10 holdings 55.26% 58.71%

Average P/E 18.30 30.93

ratio

P/B ratio 2.89 5.04

1st year 13.61% 10.11%

3th year 13.39% 15.09%

5th year 10.44% 11.17%

Since inception 11.37% 13.94%

Risk Parameter Very High Moderately High

Beta The plan's average beta The plan's average beta

is 0.96%. It shows the is 0.91%. It shows the
fund routinely earns fund routinely earns
more than the more than the
benchmark index. benchmark index.

Standard The fund's average The fund's average

Deviation Standard deviation is Standard deviation is
19.23%, which means it 17.66%, which means it
is much high volatile is much high volatile

49
 than the category than the category
average. average.

Sharpe Ratio A higher risk-adjusted A higher risk-adjusted

performance of the fund performance of the fund
is indicated by the poor is indicated by the better
risk Sharpe ratio of risk Sharpe ratio of
0.34%. 0.48%.

Portfolio 73% 27%

Turnover

50
Overall Analysis:

 Both Nippon India Large cap fund and ICICI Prudential Bluechip Fund are one of
the oldest mutual funds available in the category. But as compared to one another
ICICI Prudential Bluechip fund has been operating since 19 years and the overall
experience of fund manager is much more than that of Nippon India Large Cap fund.
 If NAV of both the mutual fund plans is compared for the span of one day ICICI
Prudential Bluechip Fund has given marginally more returns than Nippon India
Large Cap Fund.
 As far as performance parameters are concerned AUM of ICICI Prudential Bluechip
Fund is nearly 3 times and also the returns are comparatively better.
 Standard Deviation and Beta factor is close to each other with Nippon India Large
Cap Fund performing marginally better than ICICI Prudential Bluechip Fund,
keeping it less volatile and almost equal to the category average.
 As far as Sharpe ratio is concerned ICICI Prudential Bluechip Fund has performed
good with a better risk adjusted return than Nippon India Large Cap Fund where it
has a poor risk adjusted return.
 ICICI Prudential Bluechip fund has performed better in handling its portfolio by
keeping its portfolio turnover ratio very less than that of Nippon India Large Cao
fund.
 Thus, considering overall factors it is marginally better to invest in ICICI Prudential
Bluechip Fund for more focused returns and consistency than Nippon India Large
Fund.

51
4.2.2 Debt Fund:

1. Nippon India Money Market fund

2. ICICI Prudential Liquid Fund

Nippon India ICICI Prudential

Money Market Liquid Fund
Fund

Fund Manager Anju Chhajer Rahul Goswami

Rohan Maru

Asset Under 9122.61 43501.98

Management
(AUM) in crores

Min Investment 500 99

(Rs)
Fund started 15th June 2005 17th November 2005

Net Asset Value 3360.49 317

(NAV)

Total securities 84 131

Top 5 holdings 21.5% 15.44%

Top 10 holdings 35.38% 26.88%

Yield to Maturity 6.32% 5.15%

52
Average Maturity 0.88 years 0.15 years

Modified 0.84 0.14

Duration (years)

1st year 3.93% 3.6%

3th year 5.07% 4.05%

5th year 6.17% 5.29%

Since inception 7.34% 7.16%

Risk Parameter Moderate Moderate

53
Overall Analysis:

 Both Nippon India Large cap fund and ICICI Prudential Bluechip Fund are one of
the oldest mutual funds available in the category. Nippon India Money Market Fund
has been operating since last 17 years and ICICI Prudential Liquid Fund has been
operating since 17 years adding to that both the fund managers have ample fund
managing experience in managing this segment.
 If NAV of both the plans is compared there is more difference between the growths
of the NAV of both the funds over the span of one day.
 As far as the AUM is considered investors have preferred ICICI Prudential Liquid
Fund over Nippon India Money Market Fund and hence it’s AUM has increased at
a higher rate than the Nippon India Money Market.
 Nippon India Money Market Fund as given more returns since its inception as well
as over the span of last 1, 3 and 5 years is more than that of ICICI Prudential Liquid
Fund.
 Modified duration of ICICI Prudential Liquid Fund is less than that of Nippon India
Money Market Fund thus indicating ICICI Prudential Liquid Fund has performed
marginally better than Nippon India Money Market Fund.
 Thus, considering the overall performance parameters, Crisil ratings and trust of
investors it has been found that both the Nippon India Money Market Fund and
ICICI Prudential Liquid Fund is better for investor,

54
4.2.3 Balanced Funds:

1. Nippon India Arbitrage fund

2. ICICI Prudential Balanced Advantage fund

Nippon India ICICI Prudential

Arbitrage Fund Balanced
Advantage Fund

Fund Manager Anand Devendra Gupta Manish Banthia

Anju Chhajer Sankaran Naren

Kinjal Desai Rajat Chandak

Ihab Dalwai
Asset Under 10809.24 40063.8
Management
(AUM) in crores

Min Investment 100 100

(Rs)
Fund started 14th October 2010 30th December 2006

Net Asset Value 21.87 50.2

(NAV)

Total securities 138 79

Top 5 holdings 13.82% 21.88%

Top 10 holdings 23.89% 32.68%

55
Yield to Maturity 6.32% 6.03%

Average P/E ratio 30.18% 28.90%

1st year 3.5% 8.61%

3th year 4.12% 12.09%

5th year 5.08% 9.59%

Since inception 6.87% 10.92%

Risk Parameter Low High

Beta The plan's average beta is The plan's average beta is

0.96%. It shows the fund 0.79%. It shows the fund
routinely earns more than routinely earns more than
the benchmark index. the benchmark index.

Standard The fund's average The fund's average

Deviation Standard deviation is Standard deviation is
0.96%, which means it is 10.92%, which means it is
much high volatile than the much high volatile than the
category average. category average.

Sharpe ratio A higher risk-adjusted A higher risk-adjusted

performance of the fund is performance of the fund is
indicated by the poor risk indicated by the poor risk
Sharpe ratio of -0.79%. Sharpe ratio of 0.55%.

56
 Portfolio 1270% 21%
Turnover

Overall Analysis:

 Both Nippon India Arbitrage Fund and ICICI Prudential Balanced Advantage Fund
are one of the oldest mutual funds available in the category. But as compared to one
another Nippon India Arbitrage Fund has been operating since last 12 years but
overall experience of fund managers of ICICI Prudential Balanced Advantage Fund
is more than that of Nippon India Arbitrage Fund.
 If NAV of both the mutual fund plans is compared for the span of one day ICICI
Prudential Balanced Advantage Fund has given marginally more returns than
Nippon India Arbitrage Fund
 As far as performance parameters are concerned AUM of ICICI Prudential Balanced
Advantage Fund is much higher and also the returns are comparatively better than
the Nippon India Arbitrage Fund.
 Standard Deviation is not close at all for the ICICI Prudential Balanced Advantage
Fund is better than that of Nippon India Arbitrage Fund and Beta is very close to

57
 each other with ICICI Prudential Balanced Advantage Fund performing marginally
better than Nippon India Arbitrage Fund.
 As far as Sharpe ratio is concerned ICICI Prudential Balanced Advantage Fund has
performed better than that of Nippon India Arbitrage Fund and has a better risk
adjusted return.
 Nippon India Arbitrage Fund has performed better in handling its portfolio by
keeping its portfolio turnover ratio is more than that of ICICI Prudential Balanced
Advantage Fund.
 Nippon India Arbitrage Fund has been able to generate more profits in its debt or
money market investments than ICICI Prudential Balanced Advantage Fund.
 Thus, considering overall factors it is marginally better to invest in ICICI Prudential
Balanced Advantage Fund for more balanced and consistent income than Nippon
India Arbitrage Fund.

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 5. Findings
 In this project I have done both primary and secondary data of the customer
perception and compare the mutual fund schemes.
 In the primary data the customer perception of the mutual fund schemes is:
o Male are the ones who do’s more investment than the Female. There is age
group of 20 – 30 do more trading. Students are the ones who do invest in the
mutual funds and Annual income is Below 1 lakh and doing investment to
get fulfil future needs.
o People perception is that they invest option on the Saving account i.e., 31%
o Overall, 68% people having knowledge about mutual funds. On the whole
58% people make investment and overall, 62% people aware about the
Reliance mutual funds schemes and ICICI Prudential mutual fund schemes.
o Some people are saying that Nippon India Money Market fund and ICICI
Prudential Bluechip fund to make the investment then in other mutual fund
schemes. Overall, 20% people invest in Nippon India Arbitrage fund to get
high returns.
o 34% people having the parameter to get High returns. Overall, 21% people
saying that Nippon India Arbitrage fund is riskier than the other mutual fund
schemes.
o 41% people are investing between the 1 to 5 years. Overall, 60% people
saying that they prefer high risks that gets the high returns.
o Overall, 28% people do invest in the pattern of Once in six months. 38%
people investing in the form of money to get the High returns.
o Overall analysis is that people have to invest in ICICI Prudential Bluechip
fund than the Nippon India Large Cap fund.
 In the secondary data I have compare the Reliance mutual fund schemes and ICICI
Prudential mutual fund schemes is:
o In the Equity fund I have compared the Nippon India Large Cap fund and
ICICI Prudential Bluechip fund.
 In this comparison NAV as well as AUM and returns of both schemes
i.e., ICICI Prudential Bluechip is better than the Nippon India Large
Cap fund.

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  Standard Deviation and Beta of the both schemes i.e., Nippon India
Large Cap fund is better and less volatile than the ICICI Prudential
Bluechip fund.
 Sharpe ratio and Portfolio turnover ratio is concerned ICICI
Prudential Bluechip fund has performed good with a better risk
adjusted and very less portfolio turnover ratio than the Nippon India
Large Cap fund.
 Overall analysis is that people have to invest in ICICI Prudential
Bluechip fund than the Nippon India Large Cap fund.
o In the Debt fund I have compared the Nippon India Money Market fund and
ICICI Prudential Liquid fund.
 In this comparison NAV as well as returns and since its inception is
Nippon India Money Market fund is better than the ICICI Prudential
Liquid fund.
 AUM (Asset Under Management) and Modified duration is
considered ICICI Prudential Liquid fund is less than the Nippon India
Money Market fund.
 Overall analysis is that in the Debt fund people have to invest both
the schemes i.e., Nippon India Money Market fund and ICICI
Prudential Liquid fund.
o In the Balanced fund I have compared the Nippon India Arbitrage fund and
ICICI Prudential Balanced Advantage fund.
 In this comparison NAV as well as performance parameters and
returns are good of ICICI Prudential Balanced Advantage fund than
the Nippon India Arbitrage fund.
 Standard Deviation as well as Beta and Sharpe ratio is concerned of
ICICI Prudential Balanced Advantage fund is better than the Nippon
India Arbitrage fund.
 Portfolio turnover ratio and also gets better profits of Nippon India
Arbitrage fund is better than the ICICI Prudential Balanced
Advantage fund.
 Overall analysis is that in the Balanced fund people have to invest in
ICICI Prudential Balanced Advantage fund than the Nippon India
Arbitrage fund.
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 6. Conclusion

One of the financial system's competitive and fastest-growing sectors is the Mutual Fund
industry in India, which has grown over time. Despite the higher risks involved in such
investments, Mutual Funds have been drawing in investors because of their expert
management and the potential for bigger returns than those offered by conventional saving
methods.

The selected schemes of Reliance mutual fund schemes in Equity fund is Nippon India
Large Cap fund, Debt fund is Nippon India Money Market fund and Balanced Fund is
Nippon India Arbitrage fund. ICICI Prudential mutual fund schemes in Equity fund is ICICI
Prudential Bluechip fund, Debt fund is ICICI Prudential Liquid fund and Balanced fund is
ICICI Prudential Balanced Advantage fund all the schemes have explained in the short
paragraph for the mutual fund of the company.

As per primary data of Reliance mutual fund schemes and ICICI Prudential mutual fund
schemes in this study. It is observed that approximately 21% followed by Nippon Money
Market fund and ICICI Prudential Bluechip mutual fund. It is also observed that
approximately 21% of Nippon India Arbitrage fund gets higher returns. Approximately 21%
of Nippon India Arbitrage fund gets the higher risks.

The performance of secondary data of Reliance and ICICI Prudential mutual fund schemes
in Equity, Debt and Balanced fund was compared in this study. It is observed that in Equity
fund there is ICICI Prudential Bluechip fund is performing well with high returns. It is also
observed that Sharpe ratio and Portfolio turnover ratio is good with risk adjusted return and
very less in ICICI Prudential Bluechip fund. In Debt fund it is observed that Nippon India
Money Market fund is performing well with high returns and NAV (Net Asset Value). It is
also observed that AUM (Asset Under Management) and modified duration is more in
Nippon India Money Market fund and gets high returns. In Balanced fund it is observed that
NAV and performance parameter are good in ICICI Prudential Balanced Advantage fund.
It is also observed that Sharpe ratio is good with risk adjusted return in ICICI Prudential
Balanced Advantage fund and gets better returns.

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 7. Learning Outcomes

 Learnt about mutual funds and different types of funds

 Learnt about advantages and disadvantages of funds and also the phases of mutual
funds
 Learnt about the selected schemes of Reliance and ICICI Prudential mutual funds
 How to make questionnaire of the selected schemes
 Comparison and performance of equity, debt and balanced funds

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 8. Bibliography

 https://en.wikipedia.org/wiki/Mutual_fund
 https://www.etmoney.com/mutual-funds/nippon-india-money-market-fund-direct-
growth/15688
 https://www.etmoney.com/mutual-funds/nippon-india-arbitrage-fund-direct-
growth/16567
 https://www.moneycontrol.com/mutual-funds/nav/nippon-india-large-cap-fund-
regular-plan/MRC155
 https://www.etmoney.com/mutual-funds/icici-prudential-liquid-fund-direct-plan-
growth/15528
 https://www.icicipruamc.com/mutual-fund/equity-funds/icici-prudential-bluechip-
fund
 https://www.etmoney.com/mutual-funds/icici-prudential-balanced-advantage-
growth/3713
 https://www-acekp-in-
timsrmumbai.knimbus.com/MFOnlineWeb/MF/CompareFunds.aspx?id=16
 https://www-acekp-in-
timsrmumbai.knimbus.com/MFOnlineWeb/MF/CompareFunds.aspx?id=16
 https://www-acekp-in-
timsrmumbai.knimbus.com/MFOnlineWeb/MF/CompareFunds.aspx?id=16
 https://www.moneycontrol.com/mutual-funds/nav/nippon-india-arbitrage-
fund/MRC600
 https://www.moneycontrol.com/mutual-funds/nav/icici-prudential-balanced-
advantage-fund/MPI126

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Plagiarism

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