A MAJOR PROJECT REPORT ON

“study on performance of mutual funds in India”

Submitted in partial fulfilment of requirement of

Bachelor of Business Administration

BBA-VI Semester (Evening)

Batch 2021-2024

Submitted to: Submitted by:

Dr. Ruchi Singhal Abhijeet Singh

Designation Enrolment No.

Associate Professor 03324501721

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL,

KALKAJI
 ACKNOWLEDGEMENT

Any accomplishment requires the effort of many people, and this work is no different.
Racing against time and fast approaching deadlines, the fact that I was able to
complete this project on time would not have been possible without the help and
support of many people. I thank all of them whose patience and support were very
instrumental. I also thank them for making me learn the ethics and culture of corporate
world. The kind of value addition that I have done to my existing knowledge base is
exceptional and I will cherish all these moments throughout my life.
It gives me immense pleasure in mentioning the name of my project guide Ms. Ruchi
Singhal who’s helping hand led to the completion of my project.
I would also like to thank my family and friends for providing me with monetary as well
as non-monetary support, as and when required.

Their trust patience is now coming out in form of this.

 CERTIFICATE

This is to certify that the study conducted by Abhijeet Singh entitled “study on
performance of mutual funds in India” being submitted in the partial fulfilment of
BBA 2021-2024, GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY, is faithful
record of the Bonafede research work carried out by him under my supervision and
guidance. This major project report is his original work and has not been submitted to
this or any other report university/institution for the award of any other degree or
diploma.
 STUDENT UNDERTAKING

I, ABHIJEET SINGH, a student of business administration from JIMS, Kalkaji hereby declare
that I have completed MAJOR PROJECT REPORT on “study on performance of mutual funds
in India” as part of course requirement.
I further declare that the information in this project is true and original to the best of my
knowledge.

ABHIJEET SINGH
INDEX
 Particulars Page No

Acknowledgement 2

Certificate 3

Student undertaking 4

Executive Summary 6

Introduction 8

Objectives 16

Literature review 18

Research methodology 21

Data Analysis & interpretation 26

Limitations 38

Limitations 41

Conclusion 46

Bibliography 49
 FIGURES
FIG. NO. Page No

1.1 16

1.2 17

5.1 49

5.2 49

5.3 50

5.4 50

5.5 50

5.6 51

5.7 51

5.8 52

5.9 52

5.10 53

5.11 53
 TABLES
TABLES NO. Page No

1.1 14

2.1 28

2.2 39
 EXECUTIVE SUMMARY

Mutual fund is an important and good source of investment options for investors. This source helps
the investors in earning better returns compared to other source of investment. In India most of the
people does not have the adequate knowledge on the subject of mutual fund. They feel that
investment in mutual is unsafe and its like gambling. The lack of awareness and misunderstanding
about mutual fund leads to low investment in this industry. There is a need to raise public
awareness by enlightening people about the advantages of investing in mutual funds.

This report Contains information on the performance of chosen companies from various mutual
fund schemes. The study’s major goal is to figure out why SBI mutual fund schemes outperform
when compared to other company’s mutual fund schemes and to scrutinize the risk and return of
various funds.

In the upcoming year mutual fund industry has bright future. As in India companies are focusing
young people and adopting modern technology aspect in this industry. It makes buying and selling
aspect easy and convenient for the investors.

This project gave a knowledge exposure and I was able to understand the performance of fund
and customer behaviour towards mutual fund. In this project report the first part includes industry
and company related information, vision, mission, SWOT Analysis and financial reports of the
company. Second section consists of background of the study and literature review of the learning.
Third parts consist of research design and Forth part consists with data interpretation and analysis.
Last part deals with Findings, Suggestions and Conclusion.

Benefits of mutual funds

Mutual funds are managed by professionals organised firm called AMC (Asset Management
Company) through professional fund managers who actively manage investment portfolio of
various mutual fund schemes which deliver following benefits to investors:

(1) Portfolio Diversification: Mutual Funds invest in a diversified portfolio of financial

instruments which enables a small investor to hold a diversified investment portfolio even if
the amount of investment is small.

(2) Low Risk: Even with a small amount of investment, Investors can acquire a diversified
portfolio of financial instruments. The risk in a diversified portfolio of mutual fund scheme is
lesser than investing directly in only 2 or 3 shares or bonds.
 (3) Low Transaction Costs: Due to the economies of scale mutual funds incur lesser
transaction costs. These benefits are shared with the investors.

(4) Liquidity: Units of a mutual fund can be redeemed easily with the funds being credited
directly to the investors account though ECS payment.

(5) Choice: Mutual funds offer investors with variety of schemes with diverse investment
objectives. Investors, therefore, have a plenty of investing in a scheme matching their
financial goals. These schemes further provide various plans/options e.g. dividend option or
growth option or reinvestment option etc.

(6) Transparency: Funds provide investors with latest information related to the markets and
the schemes. All material facts are revealed to investors as per the guidelines of SEBI and
AMFI. They provide on a daily basis latest NAV to investors.

(7) Flexibility: Investors are also provided flexibility by Mutual Funds. Investors can transfer
their units from a debt scheme to an equity scheme or a balanced scheme through
systematic transfer plan option (STP). Option of systematic investment through
monthly/quarterly instalments (SIP) and systematic withdrawal at regular intervals (SWP) is
also offered to the investors in open-ended schemes.

(8) Safety: Mutual Fund industry is fully regulated under SEBI rules where the interests of
the investors are safeguarded. All funds have to be registered with SEBI and complete
compliance with the rules and transparency is ensured.

(9) Professional management: Mutual funds’ portfolios are managed by expert professional
managers possessing skills and qualifications to analyse the performance and prospects of
companies. They actively manage portfolios through close monitoring on a daily basis,
which is not possible for a retail investor.
 List of Abbreviations

CF - Contra Fund
GCF - Growth Contra Fund
DP - Direct Plan
GLCF - Growth Large Cap Fund
GMCF - Growth Multi Cap Fund
RP – Regular Plan
FEQ - Focused Equity Fund
MCF - Mid Cap Fund
TAF - Tax Advantage Fund
LMCF - Large & Mid Cap Fund
GSCF - Growth Small Cap Fund
FMF - Focused Multicap Fund
GVF - Growth Value Fund
GCF - Growth Contra Fund
GFF - Growth Focused Fund
GCRF - Growth Credit Risk Fund
GDBF - Growth Dynamic Bond Fund
GMLDF - Growth Medium to Long Duration Fund
GMD - Growth Medium Duration
GLD - Growth Low Duration
GFLF - Growth Floater Fund
GLF - Growth Liquid Fund
GGF - Growth Gilt Fund
GBPF - Growth Banking and PSU Fund
GUSD - Growth Ultra Short Duration Fund
GSD - Growth Short Duration Fund
GOCB - Growth Option Corporate Bond Fund
GCBF - Growth Corporate Bond Fund
GMMF - Growth Money Market Fund
 CHAPTER 1
INTRODUCTION
 CHAPTER 1
INTRODUCTION

Mutual funds have become an attractive investment option over the past few years. Exchange
Fund is an investment company that builds a bridge between investors, real estate investors and
private equity lenders. Mutual funds offer investment options to retail investors or individual
investors, and those who are not familiar with the stock market may still want to invest their funds
in the stock market a little. A mutual fund is a pure intermediary that does the basic job of buying
and selling security for the safety of investors or unit owners. Mutual Fund is the ideal place for
small investors and large institutional investors to invest in today's complex modern environment.
The mutual fund industry in India has been around for more than five decades. It has its origins
with the establishment of the Indian Government Unit Trust of India in 1964. With the growth of the
mutual fund industry, the Indian market has established many public sector funds since 1987 and
private sector funds since 1993.

Mutual Fund invites prospective investors to participate in the fund by offering a variety of options
to suit the needs of investors. Growth plans are ideal for longterm investors and want to grow for a
while. Each investment has a risk factor and their risk profile varies depending on the variable
return rate.

There are certain aspects of risk in all investments and the risk profile varies according to
the variable return. The operation of the mutual fund has generated much interest in academic
circles. One section of academia generally believes that mutual funds may not be able to beat the
market with their active fund management, contrast to the efficient market hypothesis. It is
important for investors to know whether a fund of mutual fund managers can make the best return
by justifying the management fees they charge. This estimate describes the fund performance of
risk-adjusted returns on dividend-based mutual funds. Mutual Funds Mutual Funds have advanced
in the industry and the proper valuation process helps to eliminate misunderstandings and help
small investors determine the level of investment in various mutual fund schemes, thereby
increasing returns while reducing risk. Growing animosity in the market is pushing fund managers
to satisfy investors and management. Investors and fund managers need regular performance
appraisal of mutual funds in terms of returns associated with risk-free securities and stock market
directories. The primary capital market is very passive and isolated. Unorganized, private player
theaters play an important role in managing the country's cash flow.
 UTI is one of the largest and oldest mutual funds in the country. Later, other private sector
companies and financial institutions adopted the policy and began raising funds through mutual
funds. India is one of the fastest growing economies in the world. Unlocking a huge potential
market for the mutual fund industry; this will accelerate the growth of the industry.

Notably, there is huge and potential growth in the mutual fund area. The mutual fund industry is
very promising based on continuous improvement activities in the region and is expected to grow
in the near future.

The concept of joint venture capital investment is not new; Mutual funds became popular after
World War II. One does not have the knowledge, skills, time and track to understand the meaning
of events, save their money, act quickly and solve all these problems. Mutual fund is an ideal
investment vehicle for today's complex and sophisticated environment for small investors, big
investors and companies. In fact, Mutual Fund Economy spends on three areas of research,
investment and transaction processing.

Meaning of Mutual Fund

A mutual fund is an investment vehicle created by raising money from many investors to invest in a
variety of investment options, including stocks, money market instruments, bonds and other
assets.

Mutual funds are run by professional money managers who invest money in various asset classes
with the aim of providing income or capital gains to investors. A portfolio of mutual funds must be
carefully constructed to meet the above objectives of the prospectus. A well-diversified fund can
reduce risk significantly, but does not completely eliminate diversification risk. A well-diversified
portfolio can yield great results at very low risk, but there is always a certain percentage of risk
content that applies to all investment methods. 1.2 History of mutual funds Mutual funds came into
existence in India and the UTI Act was enacted in 1963. The Union Fund Industry of India began in
1963 with the establishment of the Unit Trust of India, the Government of India, and the Reserve
Bank of India. The history of mutual funds in India can be broadly classified into six different
categories.
 Table 1.1

Phase I (1964 to 1987): Growth of UTI

In 1963, the UTI introduced legislation. It is the only co-financing company in India. For its work,
UTI was set up by the Reserve Bank of India (RBI), but was later removed from the Reserve Bank.
The 1964 project was one of the first major innovations UTI introduced in a long time.

In the 1970s and 80s, UTI began to get creative and offer a variety of strategies to meet the needs
of a variety of investors. The Unit Linked Insurance Plan (ULIP) was introduced in 1971. India's
first offshore fund, the India Fund, was launched in August 1986. In short, the amount excluded
from the UTI Group was Rs 600 crore in 1984. In 1987-88, UTI's Asset under Management (AUM)
increased tenfold to Rs 6,700 crore.

Phase II (1987 to 1993): Entry of Public Sector Fund In 1987,

it entered into other government agencies for related payments. When the economy began, many
community banks and institutions were allowed to set up mutual funds. State Bank of India opened
its first SBI Mutual Fund and Non-UTI

Mutual Fund in November 1987. This is followed by LIC Mutual Fund, GIC Mutual Fund, Canara
Bank Mutual Fund, Bank of India Mutual Fund, Indian Bank Mutual Fund and PNB Treasury. In the
meantime, investors have a vested interest in mutual funds and invest most of their savings in
investments.

Phase III (1993 to 1996): Emergence of Private Funds:

 A new era in the Flexible Fund industry began in 1993 with the approval of private equity funds.
This has given Indian investors a wider choice of ‘mutual funds’ and increased competition for
existing public sector funds. Most accredited foreign fund management companies are also
allowed to spend their money, most of which are coming to India for plans to meet with Indian
consultants. Private funds have introduced new product technologies, investment management
strategies and investment expertise. Five private fund houses were opened in 1993-94 and six
more private fund houses opened in 1994-95.

Phase IV (1996 to 1999): Growth and SEBI Regulation

Since 1996, the subsidiary fund industry has set new heights by combining revenue and player
numbers. Deregulation and liberalization of the Indian economy began to compete and this sector
accelerated the growth.

1996 SEBI (Mutual Fund) Regulations Announces Complete Procedures for All Funds Working in
India. These rules make all money worth appealing. At the time, UTI voluntarily adopted SEBI
guidelines for its new programs. Similarly, the 1999 Federal Government Budget Revenue Fund
took a major step toward freeing all investors from the hands of investors. To this end, SEBI and
the Association of Mutual Funds of India (AMFI) have launched the Investor Awareness Program.

Phase V (1999 to 2004): Emergence of a Large and Uniform

Since 1999 marks a new phase in the history of the mutual fund industry in India and is an
important step for the growth in the amount of money raised from investors and AUMs. The UTI Act
was repealed in February 2003. Instead, we adopt the same function as any other fund in India -
trust and AMC.

UTI Mutual Fund is the current name of the same Unit Trust of India (UTI). UTI Mutual Fund is now
subject to SEBI (Mutual Fund) regulations, like all other mutual funds in India.

UTI Mutual Fund is the current name of the same Unit Trust of India (UTI). UTI Mutual Fund is now
subject to SEBI (Mutual Fund) regulations, like all other mutual funds in India.

Phase VI (From 2004 Onwards): Consolidation and Growth

The sector has grown over time through Birla Sun Life Alliance Mutual Fund Programs and
Principal PNB Mutual Fund. Meanwhile, many international players, including Fidelity, one of the
world's largest currencies, are making their way into India.

1.3 Organization Structure of Mutual Funds

The Mutual funds have organizational flexibility according to the Security Exchange Board of India
guide, the Indian Security Board has defined the mandate and responsibility of Trustee Companies
and Aeest Management Company. Purposes of control, motivation, regulate, protect investors the
right and effective trading of units. Mutual Performance startup fund with investors saving their
money in a mutual fund, rather than a Mutual Fund manager managing finance and investing in
strategic strategies. In accordance with specific objectives the scheme manager selected the clips.
The unit price will be higher when the fund manager investment policy builds on the financial
market. The return of the units is subject to the return of the fund and a well- functioning financial
market. It also affects the international stock market, the eventual rejection of currency economic
policy. Below is a graph showing how the process was going on for investors in it make a profit. A
mutual fund manager who has a great deal of responsibility within the return and how to act risk
reduction. When the fund offers high returns on high risk, investors attract investment extra bag for
the same scheme

Mutual fund organization for SEBI construction and design is required through the sooth operations
of companies and achieved the ambitions of desire. Forwarding agent once the role of the fund's
savings and the unit's holders hold an account statement, but department maintenance is a certain
Property Management company. Custodian manages all of the fund units in a personal creation
 form. Sponsor had decided that a keeper in which an investor buys a fund and sells a unit.
Application forms, purchase receipt and other requests received by the transfer agent, men are
among investors as chest management companies.

1.4 Securities and Exchange Board of India (SEBI)

Here the government of India consists of the SEBI by the rules of the 1992 in parliament. It’s the
more regulated all capital market that the raises the funs in the securities of capital market like,
stocks of debenture and shares. Mutual funds have exit viable associational investor in capital
market securities. Here the under the SEBI all kinds the work defined. SEBI is to all the mutual
fund to be registered with SEBI. That is all to guide the investment activity operate the mutual fund
activity. MF can grow up through the public sectors in all kind of the foreign companies are
government regulated by the regulated. SEBI also to allow Asset Management Company (AMC)
making the investment in keep the different securities. Possessor, registered with SEBI, catch the
securities of various schemes of the fund in its custody. And that is the regulation two third of the
directors of Trustee Company or board of trustees must be free.

Association of Mutual Funds in India (AMFI)

In then increased the MF a player in the whole country, that is requires mutual funds associated
with the in organization. It was incorporated on 22nd August as Association of Mutual Funds in
India (AMFI), 1995. AMFI is a peak body of all Asset Management Companies (AMC) which has
that is required to register with the SEBI. At the since AMCs to have a launched of mutual funds
schemes are its member. This is function under the regulation and to guidance if its boards.
Associations of Mutual Funds India have brought below the Indian clean moral and professionally
work in mutual funds

The Association of Mutual Funds in India of objectives are:

The Association of Mutual Funds of India works with 30 registered AMCs of the country. There is
the lot of aim of the board of directors

The objectives are as follows:

 In India a high professional job and a good work ethic in affiliate finance in India.

 It should also bring together the best celebrities and the kindest people you can find and aim to
invest as well

 This association also to connect with the good faith behavior people with the association.

 AMFI that is the order to increase the most concept of the increased the working capital and the
try to understand of the mutual funds.

 It’s to lead the increased to grow the mutual funds association in the era of the market trends

1.5 Classification of mutual funds

Based on the maturity period

Open-ended funds: An Open-ended fund is available to pay and can be redeemed continuously. It
is available for year-round subscriptions and investors can buy and sell units at NET ASSET
VALUE (NAV) related prices. These fees are of no cost the day of maturity. An important feature of
the open bag used.

Close-ended Funds: The Close-ended fund is a fund with defined maturity periods, for example
5-7 years. These funds are open for registration sometime during the initial implementation. These
the currency is written on a known stock exchange.

Exchange traded funds: Consolidated transfer funds include opening and endingend features
money. These funds can be traded on shares of stock and are open for sale or repurchase at
predetermined NET ASSET Value (NAV) prediction.

Unit investment trusts: UTIs are offered to the public only once they are created. They have the
duration of the planned maturity and the fixed security portfolio determined at the time of creation.

Based on investment objectives

 Equity / Growth Funds: Equity funds invest at least 65% of its companies in equity and equity
related security. These investments can invest in a variety of industries or focus on one or more of
them industrial sectors. These types of funds are ideal for long-term investors as well ambition with
high risk.

Debt / income: Debt / income usually invests in securities such as bonds, which are consolidated
debates, government security and financial instruments. These investments are investing in small
quantities 65% of their corpus in fixed income securities. By investing in debt instruments, these
investments provide low risk and strong revenue to investors for savings. These fees are common
be more flexible than equity funds and generate average earnings.

Balanced / Hybrid Funds: Balanced funds invest in both utilities and inbound services in line with
the purpose of investing a predetermined investment These funds provide both the stability of
returns and capital appreciation for investors.

Market money / liquid market: The money market / liquor invests in a safe and temporary
appliance such as Treasury bills, deposit certificates and trading papers for less than 91 years
days. The purpose of the money market / finance offered is to provide easy, economical savings
and income.

Gilt funds: It invest only in government securities. Although these amounts are borne there is no
credit risk, it is associated with interest rate risk. These investments are safe as they invest in them
government securities.

Other schemes

Tax saving funds: Tax savings schemes provide tax deductions for investors under certain
arrangements of the Income Tax Act1961. These are programs that are used to grow and invest
primarily. As an equity plan, they are especially suited for investors who have a risky appetite and
intend to generate more medium and longterm information

Index Funds: The portfolio of these plans contains only those shares represents the index and
weight assigned to each stock relative to the stock weight in the shell.

Sector-specific Funds: Sector-specific funds only invest in the protection of those categories
industries as defined in the information department of the scheme. The return on these
investments it depends on the performance of the specific industry / industry.

1.6 Benefits of Mutual Funds

 An investor can invest directly in individual securities or indirectly through financial intermediary.
Globally, mutual funds have established themselves as investment strategies to an investing
investor.

Professional management: The average investor does not have a knowledge of the functions of
capital markets and which they do not have great resources to get the benefits of investing.
Therefore, he needs professional help. Not only expensive for 'Rent resources' expert but difficult
for them identify a real expert. Related fees are regulated professional managers with the required
skills and performance analysis experience and prospects for companies. They make a decent
amount of money Strategy, impossible for each investor.

Portfolio diversification: An investor is at risk if he puts all his money into one text. Related
investment funds in many companies in all different industries and categories. These variations
reduce the risk of investment. Reduction in transaction costs: Compared to direct and investing in
the capital market, investing in capital it is not as expensive as the economic benefit of the scale is
passed on to investors

Liquidity: Generally, investors cannot sell secured securities easily, while the mutual funds occur,
they can disappear easily their investment by selling their units in the fund if it is open plan or sell
in stock if it's a close program.

Convenience: Investing in mutual funds reduces paperwork, time-saving and easy money making.

Flexibility: Mutual funds provide a family of schemes, too investors have the option to transfer
their reserves from one system to another.

Tax Benefits: Mutual fund investors are now enjoying income tax benefits. Separation received
from joint debt Plans are exempted from tax on the total limit of Rs 9,000 is permitted under
section 80L of the Income Tax Act.

Transparency: Mutual Funds publicly announce portfolio every month. So the investor knows
where his money is spent and if not be happy with a portfolio they can release in a short time.

Stability to the stock market: The Mutual funds are huge the number of funds that provide them
economies of scale through which they can deduct any losses in the stock market as well continue
to invest in the stock market. In addition, mutual Investments boost the financial growth of the
market and the financial market

Equity research: Mutual funds can be access to information as well information needed for
investment as they are of great value research and equity research groups are also available.
 1.7 Summary

In this chapter we have discuss about the introduction of mutual fund, history of mutual fund,
organization structure of mutual fund, classification of mutual fund and benefits of mutual fund. In
this chapter we cover all things which is related to mutual fund. In next chapter we discuss about
the literature review
CHAPTER 2

OBJECTIVES
 OBJECTIVES OF THE STUDY

 Evaluation of Investment Returns: Investors analyse the performance of mutual funds to

assess the returns generated over a specific period. This evaluation helps investors make
informed decisions about whether to invest or divest from a particular mutual fund.

 Risk Assessment: Understanding the performance of mutual funds allows investors to

assess the level of risk associated with investing in a particular fund. Risk metrics such as
standard deviation, beta, and Sharpe ratio are used to gauge the volatility and risk-adjusted
returns of mutual funds.

 Portfolio Diversification: Analysing mutual fund performance aids investors in constructing

a well-diversified investment portfolio. By evaluating the performance of funds across
different asset classes and investment styles, investors can mitigate risk and enhance
portfolio returns.
 CHAPTER 3

REVIEW OF LITERATURE
 2.1 Mutual Funds Performance

 Hsieh, Teborbi, Wen-min lu and Nai-yu liu (2020):

Considering mutual fund performance across many countries, various researches were conducted
to understand the performance. In Taiwan, a study was conducted by Teborbi, Lu and Liu (2020) to
measure the decision quality and capital market efficiencies. They used two stage envelop analysis
using 155 mutual funds during 2007-16 and developed a market competition matrix helping fund
managers or investors to improve their operating and portfolio performance and allocation of
resources. Different effectiveness varies widely over time the first years of the study period was a
main finding. They found efficiency to be stable in recent years but lower compared to early years.
Eight of the 155 mutual funds surveyed here have the highest decisions efficiency and energy
efficiency of magnets depending on the performance of the funds in the bench collection.

 Ghoul & Kavoui (2017):

In this section the studies which have measure mutual funds performance was cited. Considering
other non-financial dimensions Ghoul & kavoui (2017) investigated mutual funds performance and
linked it with CSR (Corporate Social Responsibility) study revealed that high CSR funds have
lower performance as compared to low CSR funds. The CSR enhance or reduce the mutual funds
performance, however to adopt a dichotomous approach by comparing a group of funds that
shows in ethical standard to the remaining funds it is known as a conventional funds. As comparing
the SRI (Socially Responsible Investment) to conventional method and it ignores the intensity of
social securing among SRI funds. In this study two opposing arguments have been proposed in
the mutual funds performance and to explain the relationship between performance & social
responsibility.

 Andreu, Saez & Sarto (2017):

This paper analyzes the investment decision based on portfolio holdings and measures additional
value from different operating sources such as final selection strategies, market timing and time
 horizon. According to Andreu, Saez & Sarto (2017) the result show that security selection is the
main contributor to fund performance across the sample period considered or the asset pricing
model used. The evidence of market timing ability is mixed with low significance. The researchers
are analyzing the relationship between mutual fund performance and other different components or
fund characteristics, They find the comparison of other funds to the top funds are significantly
smaller & more concentrated. Regarding the market timing ability result is less uniform & differs
mainly depending upon the methodology use. To the measure used the timing ability were
proposed by Treynor & Mazuy (1996) and Henrikson& Merton (1981) both are return based
measures that captures a changes in relationship between systemic risk & stock market return in a
regression model, and the timing ability is biased because the beta is time varying.

 Carlos, Amparo & Emili (2016):

In this section the study which have been analyze the commonly used the persistence of mutual
funds performance over the period of 1990-2015. In the first stage, this study to contribute the how
these methodologies are biased towards the finding evidence regarding persistence too easily and
In the second stage, he take a repetitive portfolio approach which assess the performance of
measured by a following suggestions based on the past mutual funds performance and also to
show the importance of both estimating persistence by differentiate among fund style gaps and
considering the cross sectional significance of repetitive portfolios. In summary, their results show
evidence of differences in performance and persistence depending on a period under analysis in
the last 25 years. The first third of the sample time is funds they were able to contribute some
value added before calculating the financial and cost effect. This is enable desistence on
existence, especially the case for the leading financiers, because they are capable of being
productive value without Interruption. However, in the last and most recent time fund had a
significant negative impact, therefore, in contrast to the first two results low seasons, it was not
easy to expect any kind of continuity with the added value of excellent funds, because there never
was.

 Ulf Herrmann & Hendrik Scholz (2012):

In this section, the study have analyzes the performance of hybrid mutual funds. Ulf & Hendrik
(2012) investigated the study that covers 520 hybrid mutual funds that cover the period from
10/1998 to 12/2009. In this study they employ two extended carhart models which includes bond
factors to analyze the performance of hybrid mutual funds. Using quarterly measurement interval
and daily returns, they present an innovative return-based approach to decompose total
performance into style-shifting performance and in-quarter abnormal performance. In additional, it
 split into two total style-shifting performance into active and passive components. By analyzing
several simulated investment strategies this are possible benefits of these performance measures.
It shows that hybrid mutual funds (i) are less active than their averages, (ii) show a good quarter of
abnormal performance and style-changing skills, and (iii) show temporary persistence in quarterly
performance and not styleshifting skills. Their findings shows that exhibit negative and significant
total performance and alpha of the hybrid mutual funds. To active inter-quarterly style shifts is
about zero and not significant due to performance contribution.

 Javier Vidal-Garcia (2012)

In this section, the study have examines the European equity mutual funds between 1988 and
2010 for their performance and persistence in performance of styleconsistent. By using six
European countries as a large survivorship bias-free sample, they documented benchmark-
adjusted returns over longer periods as well as more than 1 year time period. They find
economically and statistically significant performance persistent for time horizons of up to 36
months, although persistence for the top and bottom performers it is much more pronounced.
Thus, past performance have explanatory power for investors and future performance of European
mutual funds as they can obtain useful evidence from past performance data. Their research aims
to provide investment styles are segmented in European financial markets and evidence on
whether countries. Their main contribution is to find that the investor can actively select a different
European funds for a continuous performance, consistent with European risk factors.

 Bialkowski & Otten (2011):

This paper analyze that the evidence on the performance of mutual funds emerging 17 | P a g e
market. To studying an emerging market provides an excellent opportunity to test whether the
insufficiency of mutual funds in developed and highly efficient markets to beat the market, also
holds in less efficient market. Bialkowski & Otten (2011) controlled sample of 140 funds. To the use
of selection bias this paper presents an overview of the polish mutual fund industry and
investigates the mutual funds performance. The latter study is done using the Carhart (1997) 4-
factor asset pricing model. The influence of fund characteristics on risk-adjusted performance is
considered, also they add mutual fund performance and persistence in performance in an
emerging market using selection bias controlled database using multi factor asset pricing models.

 W.J. , Bertin & Prather (2009):

This paper analyze that the rapid growth in a category of mutual funds to introduce as funds of
funds (FOFs). This study to show the comparison between the funds of funds (FOFs) performance
 relative to traditional equity mutual funds and funds that FOFs. These funds distinguish them by
investing shares of other mutual funds alternatively buying individual securities, this provide a
unique opportunity to examine the several issues regarding to the mutual funds management,
services and performance. This study also to enhance the performance due to management
expertise and better risk return trade off than traditional mutual funds. W.J., Bertin and Prather
(2009) analyze funds of funds (FOFs) performance in terms of funds management structure and
provide a systemic approach to selecting best FOFs.

 Rob Bauer, Kees Koedijk & Roger Otten (2004)

In this section, the study analyzes using a global database containing 103 UK, German and US
funds and extends and reviews previous research on the performance of a mutual fund. By using a
The Carhart-factor-factor model [Carhart, Journal of Finance 57 (1997) 57] overcomes the problem
with measuring most of the previous ethical studies has been. After controlling the investment
style, they find no evidence of a significant difference in risk-adjusted returns between conventional
and ethical funds for the period 1990-2001. Finally, their performance which, surprisingly are not
incrementally capable. Finally, measuring their performance is so strong in the inclusion of ethical
indicators, ironically, that they are less able to explain the flexibility of an ethical mutual fund return
variation. The purpose of their paper is to previous research to review and extend on ethical
mutual funds. They investigate the investment styles of control and ethical funds in performance
routines for their biasing influences.
Year Author Study Remarks
2020 Hsieh, Mutual fund performance: Different effectiveness
Tebourbi, The decision quality and varies widely over time
Wen-min lu & capital magnet the first years of the
Nai-yu liu efficiencies. study period. They
found efficiency to be
stable in recent years
but lower
compared to early years.
2017 Ghoul & Kavoui Mutual fund performance High CSR
and Corporate social (Corporate
Responsibility (CSR). SocialResponsibility
) funds performed
poor.
2017 Andreu, Saez & Mutual funds The top funds are
Sarto performance attribution smaller and more
and market timing using concentrated than
portfolio other funds.
holdings.
2016 Carlos, On the robustness of It was impossible to
Amparo & persistence in mutual fund expect any kind of
Emili performance. continuity with the
added value of
excellent funds,
because it never existed.
2012 Ulf Herrmann & Style-shifting abilities, In their empirical study
Hendrik Scholz Hybrid Mutual funds, They find no clear
Performance persistence evidence that hybrid
& Total performance mutual funds possess
abilities to successfully
shift style exposures on
a
quarterly basis.
2012 Javier Style analysis, Mutual European Mutual funds
Vidal- funds, Performance show strong evidence
Garcia persistence & Portfolio of persistence of high
management performance, lasting in
investment styles,
annually and over long
periods of time.
2011 Bialkowski & Emerging market mutual Weak legal institutions
Otten fund performance. and a large
underdeveloped capital
market it can influence
the performance of the
mutual
Fund.
2009 W.J. , Bertin & Management structure Compared to the FOFs
Prather and the performance of (funds of funds)
funds of mutual funds. performance related to
traditional equity mutual
funds and FOFs.
2004 Rob Bauer, Ethical investments, They found that
Kees Koedijk & Mutual funds, standard indices
Roger Otten Performance evaluation & perform better than
Style analysis ethical indices in
explaining ethical
mutual
fund returns.
Table 2.1 Mutual Funds Performance

2.1 Mutual Funds Performance Evaluation

 Luís Oliveira, TomásSalen, José Dias Curto1 & Nuno Ferreira1 (2019):
By means of the models recommended by (Treynor & Mazuy, 1966;
Henriksson& Merton, 1981), the present-day research explores the choice
and scheduling skills of mutual fund administrators to signify the training of
these approaches as a method to accomplish exceptional
 accomplishment.163 European equity mutual funds that shadowed lively
organization plans bordered by January 2000 and December 2016, there was
no slightly suggestion that fund administrators used market place
effectiveness abilities to go before the market activities. However, the inequity component
of profits represents marginally encouraging findings, not with standing the weak total
presentation.

 Tchamyou, Asongu, &Nwachukwu (2018):

The paper examines the impacts of data irregularity (stuck between the
realized arrival and the anticipated arrival) on top of market place scheduling
in the mutual fund business. Used For the objective, we utilize a board of
1488 effective wide open- end mutual funds used for the phase 2004-2013.
We utilize fund-specific time-active betas. Information irregularity is assessed
as the specification variation of individual risk. The dataset is disintegrated
interested in five market place basics in request to highlighting the strategy
consequences of our conclusions along with deference to (i) equity, (ii) fixed
income, (iii) tax preferred mutual funds, (iv)alternative and (v) allocation. The
practical proof is founded on endogeneity-robust Discrepancy and Method
Generalized Technique of Minutes. The resulting conclusions are formed.
Initial, data lopsidedness generally pursues the similar tendency as instability,
with a greater understanding to market place take the risk of experience. Next,
fund managers have a tendency to increase their threat experience in period
of high-level (low) market cash flow. Third, there is evidence of merging in
equity funds. We may consequently suggest that fairness monies with reduce
market probability experience are holding-up with their colleagues with greater
coverage. To variation in market place circumstances. The paper adds the
limited information on top of market effectiveness in the mutual fund industry
with time-vibrant betas, info irregularity and an endogeneity-strong practical
method.

 Renu Ghosh (2012):

Mainly in this research paper performance evaluation is based on risk and
return of selected mutual fund. In earlier research paper there are many ratios
like risk-return analysis, Treynor’s ratio, Sharpe’s ratio, Jensen’s measure and
Fama’s measure are used here. For your kind information here researcher
choose the data of NAVs (Daily Closing time) in between 1st January 2010 to
31st December 2013. I this paper researcher choose Public and Private
sponsored three Vice Versa also choose three private (Foreign) mutual
scheme. At the result out of nine mutual fund scheme three are performing
very well in the selected market and names are given into the research
 paper. In conclusion private foreign company sponsored Mutual fund are
performing very well.
Panwar and Madhumati have found the difference between Public sponsored
and Private Sponsored Mutual funds companies and they are concluded that
public sponsored companies are very well performing.
Mutual funds outpaces the standard like market and elasticity the profit of
change even after ward addition back up the organization dues then contacts
budgets (Otten and Bams, 2000; Rao and Ravindran,2003; Petajisto,2013;
Kumar,2011; Essayyad,1988) but the conflicting consequences stood agreed
through the trainings (Jayadev,1996 and Cai et al.,1997) that mutual funds fail
the standard for the reason that they have a tendency to provide in larger
shares along with low down hardback- to-market place percentages.

 Larry J. Prather (2012):

Incentive meant for mutual fund managers is frequently structured around the
similar approach such as flat tire wage blended with a percentage of holdings
under supervision. Below this call option-like payoff structure, this asymmetric
flow- performance relation implies that out pacing executives will power
compensated along with better reimbursement, but managers getting poorer
profits remain not punished by smaller costs. During result, this
disproportionate flow-performance relative makes enticements used for
finance executives to change the probability of their collections.
Numerous studies say linked a convex stream-performance bond, as mutual
fund shareholders tend to participate in funds with glittering performing as well
as perform not punish in adequate performing equally. Finance managers say
consequently an inducement to take away unnecessary risk to boost potential
likely fund arrivals since their payment varies principally on the properties
below administration. This reason to change risk is especially solid in moment
intervals in which streams are extremely vulnerable to an incremental
difference in performing.

 Xiujuan Zhao a, Shouyang Wang b, Kin Keung Lai(2011):

In this Paper for checking the performance of mutual fund they are adopting
DEA model with two quadratic constrained. Risk and return are mainly two
factors of any financial institution on any nation for getting the performance of
 any mutual fund.

Risk and return provide proper information to the management for getting
proper action. Here author Introducing two quadratic constrained DEA Model.
Here for testing the performance of Mutual fund they must choose the twenty-
five-sample data from Chinese market. Here they are finding the root reasons
for its inefficiency.
Mutual funds are quite popular as one of the investment tools for ordinary
people coming from small business for getting diversified investments. Mutual
fund managed asset demand increased and securing fund from expanded
sources
For comparative performance usually applied for systematic analysis method
and it also called as data envelopment. After reviewing this paper, there are
two main factors which is affecting mutual fund i.e. Risk and Return. Those
implemented on 25 mutual funds of and we track the data of 2005 and 2006.

 Murhandi, Wernerp-Ria (2010):

In this research work market timing and selectivity is the key parameters of
evaluating the performance of Indian mutual fund. Here the data framework
state by Treynor and Mazuay and Henriksen also Merton. Researcher used
the twenty-five relative data set by using balanced penal over the seventeen-
month timeline. Accordingly, they find only four mutual funds are performing
very well in defined factors like Market timing and Stock selection.
The Mutual fund development is banked supported by products growing by
investment, so everyone can easily understand the how to manage the
investment and time management for same. For understanding the
performance of mutual fund Treynor developing the methods and it called
Treynor Ratio. Many experimental studies in USA demonstrated that action
plan management not able to beat the market. There are so many researches
take place to take perfect evaluation of Indian Financial System of Mutual fund
its very effective.

 TalatAfza (2009):
In this section, the study has analyzed the performance evaluation of hybrid
mutual funds. Purpose of the study to provide details guideline for Pakistan
Mutual fund manager to managing the fund. It is very important for Pakistani
fund manager and small investor with significant variable. Here we found that
in this research paper Sharpe ration used very extensively for cross sectional
data and to focus on different mutual fund in Pakistan. The consistency of
effectiveness of Management is central
focus of many researchers. Researcher state that positive fund return consistency is not
found in many fund managers in Pakistan for managing mutual fund’s performance.
Management Effectiveness and its consistency is focus area of many researchers.
Effective market theory state that fund manager has not that much capacity to generate
the positive fund return.
For achieve the goal fund manager choose many management strategies for
managing mutual fund in Pakistan. Different kinds of trainings have been
strong-minded to be estimated different variable of mutual fund.

 Dr S Narayan Rao (2003):

While reviewing this paper Indian Mutual fund market getting through or its
depending on relative performance Index, risk and return, Treynor’s ratio,
Sharp’s ratio and many other performance evaluation methods are
introducing. Here the researcher used closing data of NAVs of month between
the September 1998 to April 02 and they consider 269 out of 433 open ended
schemes for evaluation. The performance state that mostly all Mutual fund
scheme satisfied customer’s expectation by giving very high rate of return.

While reviewing this paper, researchers use following performance evaluation

parameters for evaluating India mutual fund.

1. Relative Performance Index

2. Risk and Return
3. Treynor’s ratio
4. Sharpe’s Measure and his ratio
5. Jensen’s ration and his Measure
6. Fama’s Ratio and his measure.
By using this they are evaluating Indian financial system of Mutual fund.

 J. Sawicki, (2001):
Numerous surveys assessing the movement of funds interested in and out of
U.S. mutual funds take note of a convexity in the performing flow relative as
well as extend some reasons for the obvious shareholder callousness to bad
performing. In this research stakeholder reaction to previous presentation is
calculated in a separate setting: the Australian comprehensive resources
marketplace. The findings verify that,
 like the U.S. mutual fund shareholder, ordinary depositors in Australia
respond to new performing. Though, regularity is not found in generally
experiments. Proof that small, youthful funds are prospective chauffeurs of the
disproportionate reaction impact is likewise given.

 Nevertheless, Chevalier and Ellison (1997)

These writers say that these findings occur from the practical conclusions that
the out pacing resources be given a bigger influx of investment, although
mutual funds with Chevalier and Ellison (1997) novelty that the poorest
accomplishment reserves consume the lowermost risk-winning inducements,
though the resources with higher temporary revenues upsurge their risk.
Likewise, worse implementation does not knowledge as significant spending
of big bucks.

A solid correlation among previous performing and the proprietor of assets

exists in our version, certainly this is the marketplace system that certifies that
not any certainty is not available performing occurs. Adjusting the pattern to
the endowment streams and survivorship rates, we need these elements of
the statistics are stable along with the huge margin (80%) of working
executives having at least sufficient expertise to make it to back up their fees.
Year Author Study Remarks
Table 2.2
2019 Luís Oliveira Market Timing and There was no slightly Mutual
, Tomás Salen Selectivity: An suggestion that fund Funds
, José Dias Empirical administrators used
Curto1 & Nuno Investigation of marketplace
Ferreira1 European Mutual effectiveness abilities
Fund Performance to go before the
market
activities.
Performance evaluation

2009 Talat Afza Performance Here Author

evaluation of Pakistan Introducing Five
Mutual Fund. Parameter to get
performance of
Mutual
fund.
2003 Narayan Performance Researcher state that the
Rao Sapar Evaluation of India market timing and the
Mutual funds selectivity is very
important factor for
evolution of
mutual fund.
2001 J.Sawicki Investors' The U.S. mutual fund
differential shareholder, ordinary
response to depositors in Australia
managed fund respond to new
performance performing. Though, a
comparable retort
irregularity is not found
in
generally experiments
1997 Nevertheles Mutual fund flows Here Author Introducing
s, Chevalier and performance in six Parameter to get
and Ellison rational markets. performance of Mutual
fund and mainly focus on
 NAVs at Day end and risk
and
return.

2018 Nwachukw Effects of The dataset is disintegrated

u asymmetric interested in five marketplace
&Tchamyo information on basics in request to highlighting
u market timing in the the strategy consequences of
, Asongu mutual fund Industry our conclusions along with
deference to (i) equity, (ii) fixed
income, (iii) tax preferred
mutual funds, (iv)
alternative and (v)
allocations

2012 Renu Ghosh Performance Here Author introducing six

evaluation of Pakistan Parameter to get performance of
Mutual Fund. Mutual fund.
2012 Larry J. Prather Performance In this paper researcher
evaluation of Pakistan Introduction two factor
Mutual Fund. which is affecting most
i.e. Risk and Return and
other ration method which is
derived in this
paper.
2011 Xiujuan Zhao a, Analysis of Mutual In this paper researcher
Shouyang fund performance Introduction two factor
Wang b, Kin evaluation based on which is affecting most i.e.
Keung Lai endogenous Risk and Return.
c, benchmarks
2010 Murhandi Performance Here Author using the Two
, Werner- Evaluation of Mutual main Parameter of mutual fund
Ria fund in Indonesia evaluation in this research
paper i.e. risk return many
more ratio
illustrated in this paper.

2.2 Model
Sharpe Ratio:

 Sharpe Ratio was developed by Nobel laureate William F.

Sharpe. “Sharpe ratio is used to measure the performance of an
investment compared to its risk. The ratio is the average return
earned in excess of the risk free rate per total risk”.
 Formula:
Sharpe Ratio = (Average fund returns − Risk-free Rate) /
Standard Deviation of fund returns

Treynor Ratio:

 The Treynor ratio also known as the reward-to-volatility ratio, it

shows “the risk adjusted return of large cap mutual funds. Risk in
the Treynor Ratio refers to systemic risk as measured by a
portfolios Beta”.
 Formula:
Treynor Ratio = (Average fund returns − Risk-free Rate) / Beta of the
portfolio

Beta:

 “Beta measures the tendency of a portfolios return to change in

response to changes in return for the overall market”.
 Formula:
Beta = covariance/variance

Jensen’s Alpha:
  Jensen’s measure is a risk adjusted performance measure that
represents “the average return on an investment compared to a
return suggested by the CAPM (capital asset pricing model)”.
 Formula:
Jensen Alpha = {(Fund return-Risk free return) – (Funds beta)
*(Benchmark return- risk free return)

Standard Deviation:

 “It is measure of the amount of variation or dispersion of a

set of values”.

 Formula:
Standard Deviation (SD) = Square root of Variance (V)

Variance (V) = (Sum of squared difference between each

monthly return and its mean / number of monthly return data –
1).
 Sehgal & Babbar (2017):
In this Section, the study examines of the purpose is Performing a quantitative
performance appraisal based on the alternative asset pricing models to
evaluate the performance of related funds and provide the best. The
conditional version of Carhart's (1997) model was found to be the largest to
measure the proper functioning in the Indian context. The success of
conditional model son top of the unconditional models highlighting that fund
managers manage their portfolios mightily. Besides, these findings are very
important to researchers, since they have been non-conditional and
standardized test manuals small in emerging markets including India, this
study
 contributes to the literature an evaluation of the performance of the mutual
fund by suggesting a benchmark for good performance the Indian money fund
industry.

 Himanshu Puri (2012):

In this section, the study analyze to make an attempt was made to study the
effectiveness of the selected schemes of mutual fund based on the risk-return
relationship model and various measures. The balance mutual fund schemes
are the most preferred by Indian investors due to their limited portfolio of
equity and debt.

 Athanasios G. Noulas, John A. Papanastasiou and John Lazaridis (2005):

In this section, the studies that the assessment is based on risk and return
analysis. Risk is measured by the coefficient of variance and systematic risk.
The results show that there is a positive relationship between risk and overall
return, while betting because all the funds is less than one. The results show
that there is a huge difference between the equity mutual funds for risk and
return. Generally, high risk is associated with high return. The beta of all
mutual funds is smaller than one in a four-year period.

2.3 Summary
This chapter contain the literature review which established the theoretical
framework for the study. It include all the research study on mutual fund
performance, mutual fund performance evaluation and model. And in the
next chapter we discuss about the research methodology.
 CHAPTER 4

RESEARCH METHODOLOGY
 RESEARCH METHODOLOGY

It is crucial to pay close attention to the method used in conducting the research as it directly
affects the validity, reliability, and applicability of the results obtained. Therefore, it is necessary to
provide further information on the research method used over the course of this investigation. It
equips the researcher with criteria for determining whether a certain set of techniques and
procedures is suitable for a given problem. It is beneficial for other researchers to be able to
examine the researcher's choices in how the study is conducted; thus, it is important for the
researcher to make those choices and their rationales explicit.

RESEARCH PROBLEM:
The first step in every research project is to formulate a clear statement of the problem. The
study's goal is to learn more about the different types of sales promotions employed by
Britannia and its competitors in the same industry. With this research, the company hopes to
improve its future sales expansion strategies by pinpointing which promotional strategies
would be most beneficial

RESEARCH DESIGN:

A research design is a plan for collecting and analysing data that aims to maximize efficiency while
maintaining fidelity to the study's stated goals. The term "research design" may also refer to the
larger framework developed before beginning an investigation. Research is the hypothetical
system inside which examination is directed; it is the arrangement for how data will be gathered,
quantified, and analysed.

The following classes may be used to organize different types of research methods:
- Research approach in the case of exploratory studies.
- Research methodology in cases when descriptive studies are being undertaken.
- Methodology for studies including diagnostic techniques.
- Research plan for hypothesis-testing experiments if any are conducted.

Since empirical research relies only on experience or observation and frequently fails to
adequately explore systems and theories, this study employs a different research strategy. This
kind of study is grounded in data and produces results that can be verified by direct observation or
controlled experimentation.

The following should be prioritized in the planning of such studies, and the following is a suggested
framework for designing empirical research:

- The first step of every research project is to create a working definition.

- Plans for data collection need to be formulated.
Considerations for Sample Selection

SAMPLE DESIGN

A sample design is a predetermined plan for selecting individuals to be included in the data
collection process from a larger population. It's impossible to perform as much research as
would be ideal due to constant constraints on both time and money. Due to these limitations,
the information we currently possess should be sufficiently accurate to be universally
representative. Since there is no other choice, a sample will have to do.

Sample Size: 100 responders

DATA COLLECTION:

Acceptable data must be gathered since it is frequently found that the present facts are inadequate
when trying to find a solution to any real-world situation. When a subject has been chosen and a
strategy for the study has been drafted, the following step is to begin the process of data collection.
When deciding the strategy for gathering information to use for the review, the specialist should
remember the two sorts of information accessible: essential and optional.

Where the Data Came From:

The researcher has access to basically two different types of data, which are as follows:

- Primary Data
- Secondary Data

Primary Data:
 The term "primary data" refers to information that has never been obtained before by anybody
other than the researcher themselves, using their own independent means and efforts. There are a
variety of techniques that may be used to gather information, such as interviews with a questioner.

Secondary Data:

The phrase "secondary data" is used to describe information used by the author which was already
collected by someone else first-hand.

The different approaches used for collecting data, include:

- The technique of observation

- Method of Interviewing
- Questionnaire technique
- Other Sources

Questionnaires are an integral part of my present study.

Questionnaires and in-person interviews were the main tools for primary data collection in this
study.
 CHAPTER 5

DATA ANALYSIS AND INTREPRETATION

Q.1 Gender
From the all respondents there are 53.3% female and 46.7% male. It is show that there ismore
number of females than males.
 Gender

46.7
53.3

males females

Figure5.1
Q.2 what is your profession?
From all the respondents more respondents are professionals and business person than
Government employees & others

profession

10

21.7

23.3 45

govt employee professional business person other

Figure 5.2

Q.3 what is your annual income?

From all the respondents 33.3% peoples are there whose annual income is in between 3 lakh to5
lakh which is higher than other

annual income

20.00%
25.00%

21.70%

33.33%

below 10000 100000-300000 300000-500000 above 500000

Figure 5.3

Q.4 have you ever invested?

From all the respondents 91.7% peoples have invested in mutual funds and 8.3% people are there
who have not invested in mutual fund

ever invested
8.3

91.7

yes yes

Figure 5.4
Q5 Which end-scheme do you feel is good?
From all the respondents 60% have invested in open ended scheme and 40% people have invested in close
ended scheme.

open/close

40

60

open ended close ended

Figure 5.5

Q.6 You have invested in which type of Mutual Fund?

From all the respondents 65% peoples are there who have invested in equity mutual fund whichis more than
debt & hybrid mutual fund.

types of funds

13.3

21.7

65

equity funds debt funds hybrid funds

Figure 5.6
Q.7 If equity then, in which category? Please select the appropriate fund according to the answer
of From
all the respondents 40.9% people prefer to invest in diversified equity funds, 22.7% people prefer
to invest in Tax Saving Schemes, 20.5% people prefer to invest in mid cap funds and other prefer
to invest in sector specific funds

Sales

22.70%

40.90%

15.90%

20.50%

diversified equity funds mid cap funds sector specific funds tax saving funds
Figure 5.7

Q.8 If debt then, in which category? Please select the appropriate fund according to the answer of.
From all the respondents 38.8% people prefer to invest in income funds, 21.7% people prefer to
invest in short term plans, 15.8% people prefer to invest in guilt funds & liquid funds
and other prefer to invest in MIPS

Sales

15.80% 15.80%

21.10%

36.80%

10.50%

gifts funds income funds MIPS short term plans liquid funds

Figure 5.8
 Q.9 How long would you like to hold your Mutual Funds' Investments?

From all the respondents 35% people like to invest for 3-5 years, which is higher than others.

year

7%

28%

30%

35%

0-3 year 3-5 year 5-10 year 10 and above

Figure 5.9

Q.10 How do you rate the risks associated with Mutual Funds?

Out of all respondents 73.3% people feel that mutual funds is associated with moderate risk.

risk

8.30%
18.30%

73.30%

low moderate high

Figure 5.10
 Q.11 Which among the following principles do you consider while selecting a Mutual Fund? Out of all the
respondents 51.7% of peoples consider the past performance before investing in mutual fund and
30% of people enquiring about the fund manager which is more no. than other.

principle while selecting mutual funds

equiring about the funds manager finding about its past performace
identifying your own objevctives other
Figure 5.11

CHAPTER 6
LIMITATIONS
 LIMITATIONS

1. Sample Bias: The market survey's sample may not fully represent the diverse demographic
and geographic characteristics of Tiger Biscuit consumers. Sampling bias could arise from
limitations in sampling methods or inadequate representation of certain consumer
segments, potentially impacting the generalizability of findings.

2. Response Bias: Respondents' responses in the survey may be influenced by social

desirability bias or recall bias, leading to overestimation or underestimation of certain
attitudes or behaviours related to Tiger Biscuit. Additionally, non-response bias could affect
 the reliability of survey results if certain consumer groups are disproportionately
underrepresented.

3. Questionnaire Design: The effectiveness of the survey questionnaire in capturing relevant

insights and addressing research objectives may be limited by factors such as question
wording, response options, and survey length. Inadequate piloting or validation of the
questionnaire could result in ambiguous or biased responses, affecting the validity of survey
findings.

4. Data Collection Methods: The reliance on self-reported data through online surveys or
telephone interviews may introduce limitations in data accuracy and reliability. Respondents'
subjective interpretations or misinterpretations of survey questions could lead to
inaccuracies in responses, undermining the robustness of the survey data.

5. Temporal Factors: Market conditions, consumer preferences, and competitive dynamics are
subject to change over time. The findings of the market survey may reflect a snapshot of the
market at a specific point in time and may not capture long-term trends or emerging
developments relevant to Tiger Biscuit's market performance.

6. Competitive Intelligence: Access to proprietary data or competitor information may be

limited, constraining the depth of competitive analysis in the market survey. Incomplete
information about competitor strategies, market positioning, or consumer perceptions could
restrict the comprehensiveness of insights into Tiger Biscuit's competitive landscape.

7. Resource Constraints: Limitations in budget, time, or personnel may impact the scope and
scale of the market survey, restricting the ability to conduct extensive data collection,
analysis, or follow-up research. Resource constraints could compromise the depth and
breadth of insights generated from the survey findings.

8. External Factors: External factors such as economic conditions, regulatory changes, or

unforeseen events (e.g., public health crises) could influence consumer behaviour and
market dynamics in ways that are beyond the scope of the market survey. These external
factors may introduce uncertainties or limitations in interpreting survey findings and
projecting future market trends.

Acknowledging these limitations is essential for interpreting the findings of the market
survey accurately and making informed decisions based on the available data. Mitigating
these limitations through careful methodological considerations, triangulation of data
sources, and ongoing monitoring of market trends can enhance the reliability and validity of
the survey findings.

CHAPTER 7 FINDINGS
AND RECOMMEDATION
 Introduction

In the previous chapter, we have completed Sharpe ratio, Treynor ratio,

Jensen ratio and paired sample t-test with their interpretation of data
analysis, from that we examine the findings of the study.

It is helpful this study creates information that the mutual funds are provided
investors wide range of investments option according to risk and returns. In
India mutual funds are playing most important role. The small investors are
also invest in mutual fund schemes. Small investors are well advised to
analyze the returns and risk parameters of mutual funds, and in the event of
high stock market volatility, mutual funds are the best sources of investment
for sure and adequate returns in the right direction.

5.1 Findings of the study

There are major findings along with discussion of the research on mutual
fund schemes are

 It is a study on performance evaluation of mutual fund scheme to get

more return and safety of the mutual fund.

 The investor as a strictly follow SEBI rules and regulation.

 The investor who bears high risk will be getting high returns.

 Yes, there is an impact of COVID19 on mutual fund schemes in India as we

compare the last two years data. There is highly impact on the returns due
to COVID19.

 In Sharpe Ratio, the higher ratio is to earn the higher return. According to
the Sharpe Index Performance of Equity Mutual Fund Schemes we have
 found out that the SBI - GSCF growth Sharpe’s ratio is 0.1040 and in
Sharpe Index Performance of Debt Mutual Fund Schemes we have found
out that the IDFC Government Securities - GGF (DP) growth Sharpe’s ratio
is -0.6244 on the basis of higher return it stands on 1st rank.

 Treynor Ratio, the higher ratio is to earn the higher return. According to the
Treynor Index Performance of Equity Mutual Fund Schemes we have
found out that the SBI - GSCF Treynor ratio is 0.2621 and in Treynor Index
 of Debt Mutual Fund Schemes we have found out that the LIC MF Debt
- GBPF Treynor ratio is 3.0079 on the basis of higher return it stands on
1st rank.

 Jensen Ratio, the higher ratio is to earn the higher return. According to the
Jensen Index Performance of Equity Mutual Fund Schemes we have found
out that the SBI - GSCF Jensen Ratio is 0.1294 and in Jensen Index
Performance of Debt Mutual Fund Schemes we have found out that the
IDFC Government Securities - GGF (DP) Jensen ratio is 0.0435 on the
basis of higher return it stands on 1st rank.

 From all the above ratios, SBI - GSCF get better returns and had the better
performance than all the other Equity mutual funds schemes.

 The investor can recognize and analyze the risk and return of the mutual
fund scheme by using this analysis.

 Most of people think that investment in stock market or Mutual Fund is of

high risk therefore they don’t invest in them.
CHAPTER 8
CONCLUSION
Mutual funds are one of the best investments ever made because they are
cost effective and easy to invest in all equity and debt schemes. Various
external causes affect the fund performance it is suggestible for the investor
to choice the right scheme according to their return and objective of the
scheme and it is always advisable to invest in equity schemes for longer
period of time. The Crisis like COVID19 have been impact on mutual fund
schemes so the investor can see the returns which are the giving the higher
return during this crisis period. As from our report the investor can analyze
the better performance Mutual fund schemes in which they want to invest
their money.
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 Annexure

Q1. Gender

(a) Male

(b) Female

Q2. What is your profession?

(a) Government Employees

(b) Business person
(c) Professional
(d) Other

Q3. What is your annual income?

a) Below 100000
(b)100000-300000
(c)300000-500000
(d)Above 500000

Q4. Have you ever invested in mutual fund?

(a)Yes
(b) No

Q5. Which end-scheme do you feel is good?

(a)Open ended
(b)Close ended

Q.6 You have invested in which type of Mutual Fund?

(a)Equity Fund
(b)Debt Fund
(c)Hybrid fund

Q.7 If equity then, in which category? Please select the

appropriate fund according to the answer of
A.
(a)diversified equity funds
(b)mid cap funds
(c)sectors specified funds
(d)tax saving schemes

Q8. If debt then, in which category? Please select the

appropriate fund according to the answer of

(a)Gilt funds
(b)Income funds
(c)MIPS
(d)Short term plans
(e)Liquid funds

Q9. How long would you like to hold your Mutual Funds'
Investments?

(a)0-3 years
(b)3-5 years
(c)5-10 years
(d)10 and above

Q 10. How do you rate the risks associated with Mutual

Funds?

(a)Low
(b)Moderate
(c)High

Q 11. Which among the following principles do you consider

while selecting a Mutual Fund?

(a)Enquiring about the fund manager

(b)Finding about its past performance
(c)Identifying its own objectives
(d)Others