A

Project report
on
Finance
A Study on Comparative Analysis of Mutual Funds Scheme of Select AMC
A Project Submitted to University of Mumbai
in Partial Fulfilment of Semester IV
For the award of
Master of Management Studies
in
Finance
By

Mr. / Ms. Akash Ashok Kenjale

Roll. No: 2021032

Under the Guidance of
Prof. Minal Parekh

ROHIDAS PATIL INSTITUTE OF MANAGEMENT STUDIES

(Affiliated to University of Mumbai, Approved by AICTE, New Delhi)

May, 2023

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 Shree Shankar Narayan Educational Trust

Rohidas Patil Institute of Management Studies

(Affiliated to University of Mumbai, Approved by AICTE, New Delhi)
Mahavidhyalaya Marg, Navghar Road, Bhayandar East, Thane – 401105.

CERTIFICATE

This is to certify that Mr. / Ms. Full name of the Student is a bonafide student of our Institute and the
dissertation entitled A study on Comparative Analysis of Mutual funds Schemes of select AMC's
submitted by him / her is in partial fulfilment of the semester IV for the Degree of MASTER OF
MANAGEMENT STUDIES IN Finance by the University of Mumbai during the Academic Year 2022-23.

Place: Bhayandar, Thane Dr. Bhupesh V. Rane

Date: Director
Rohidas Patil Institute of Management Studies

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 GUIDE’S CERTIFICATE

This is to certify that the Dissertation entitled A study on comparative analysis of mutual funds schemes

of select AMC’s is a bonafide record of independent research work done by Mr. / Ms. Full name of the

Student, Roll. No. 2021032 under my supervision during Academic year 22-23, submitted to the University

of Mumbai in partial fulfilment of Semester IV for the Degree of MASTER OF MANAGEMENT STUDIES

IN Finance.

Place: Bhayandar, Thane. _____________________

Date : Prof . Minal Parekh

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 DECLARATION

I Mr./Ms. Akash Ashok Kenjale hereby declare that the dissertation A study on comparative analysis of

mutual funds schemes of select AMC’s submitted to the University of Mumbai in partial fulfilment of the

semester IV for the Degree of MASTER OF MANAGEMENT STUDIES IN FINANCE is an original work

and that the dissertation has not previously formed the basis for the award of any other degree, Diploma,

Associate ship, Fellowship or other title.

Place: Bhayandar, Thane _____________________

Date: Akash Ashok Kenjale

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 EVALUATION OF DISSERTATION

1. Name of the Candidate :

2. Registration / Seat Number :

3. Name / Code of the subject :

4. Title of the Dissertation :

5. Evaluation:

Parameters Maximum Marks

Sr. No.
Marks Awarded
1 Situation analysis and Problem definition 10

2 Literature Review (secondary data) 10

3 Methodology of study 20

4 Data Analysis (Primary and Secondary data) 20

5 Conclusions and recommendations 15

6 Guide’s assessment of project progress 10

7 Viva Voce 15

Total 100

6. Name & Address of the Evaluator:

7. Signature of Evaluator with Date:

8. Signature of the Head of the Institution with seal:

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 ACKNOWLEDGEMENT

Apart from my efforts, the success of any project depends largely on the encouragement and guidelines of
many others. I take this opportunity to express my gratitude to the people who have been instrumental in the
successful completion of this project.

I would thank the Management of the Institute for providing valuable resources viz. Library, Computers with
Internet facility which is an essential pre-requisite in the successful completion of the project.

I would like to show my greatest appreciation to Prof. Minal parekh I can’t thank enough for his/her
tremendous support and help. I feel motivated and encouraged to execute my project under his/her mentorship.
Without his/her guidance this project would not have materialized.

The support received from all the respondents was vital for the success of the project. I am grateful for their
time and efforts. Last but not least, I wish to thank my parents Ashok Kenjale (Father) and Usha Kenjale
(Mother) for their continuous motivation.

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 EXECUTIVE SUMMARY

Generally, when an investor decides to study an investment options readily available in today's confusing, complex

and risky environment, he thoroughly evaluates all the investment options. While evaluating such multiple options,

he naturally considered several factors like past performance of the options under study, risks adjusted returns

from the invested plan, share in the portfolio policy, fund house, black returns i.e. percentage of interest/ dividends

and consistent rate of returns on investment, to mention a few. In the word of Warrant Buffett, "Risk comes from

not knowing what you are doing". If at all, an investor decides to follow all these options for his investment, quite

strictly, preferable he would come to a rational conclusion of an option of mutual funds. However when an investor

decides to opt for mutual funds, he proceeds with the assumptions that the performance of mutual funds is

relatively good, the return on mutual funds is better as compared to the returns on fixed deposits with bank or post

offices. The performance of mutual funds is good because of proper portfolio and risk management and it is linked

and dependent on stock market

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 INDEX

SR No Particulars Page Numbers

1 Introduction 11 - 23

2 Literature review 24 - 29

3 Objectives 30

4 Data analysis & Interpretation 31 - 48

5 Findings 49

6 Suggestions & Conclusion 50 - 51

7 Bibliography 52 – 53

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 CHAPTER 1
INDUSTRY SUMMARY

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 Introduction to Financial Markets

Financial markets typically refer to any marketplace where the trading of securities takes place, including the
stock market, bond market, FX market, and derivatives market, among others. Financial markets are
essential to the efficient operation of capitalist economies Depending on the market, these assets or securities
may be traded over the counter or on regulated exchanges (OTC). The smooth running of a capitalist society
depends on the financial markets, which deal in all varieties of securities. Failure of the financial markets
may lead to recession and job loss, among other economic repercussions. Financial markets are essential for
the efficient running of capitalist economies because they distribute resources and provide liquidity to firms
and entrepreneurs. Buying and selling financial assets is made simple by the markets. Financial markets
provide securities products that offer a return to people with extra money (investors/lenders) and make that
money accessible to others who need more cash (borrowers

One form of financial market is the stock exchange. Financial markets are created by buying and selling a
wide variety of financial instruments, such as stocks, bonds, currencies, and derivatives. To ensure that the
markets set prices that are effective and reasonable, financial markets rely largely on informational
transparency. Because of macroeconomic factors like taxation, the market prices of securities may not reflect
their true value.

While some financial markets are small and rarely active, others, such as the New York Stock Exchange
(NYSE), transact trillions of dollars’ worth of assets every day. Investors can purchase and sell shares of
publicly traded corporations on the equities (stock) market, which is a financial market. Initial public
offerings, or IPOs, are new stock issues that are sold on the main stock market. Any additional stock trading
happens on the secondary market, when investors purchase and sell securities that they already possess.

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 Indian Financial Market

The financial market in India is among the oldest in the world and is regarded as the best and fastest-
growing market among those of emerging economies. The East India Company ruled India for 200 years at
the end of the 18th century, beginning the history of the Indian capital markets. Around Mumbai, where at
least 200 to 250 securities brokers were active throughout the second part of the 19 th century. The Indian
capital market developed. Since the securities exchanges in Mumbai, Ahmedabad, and Kolkata were
founded as early as the 19th century, the financial industry in India is currently more developed than many
other industries. The overall number of stock markets in India increased to eight by the early 1960s,
including Mumbai, Ahmedabad, and Kolkata in addition to Madras, Kanpur, Delhi, Bangalore, and Pune. In
addition to the centralised NSE (National Stock Exchange) and OTCEI, India now has 21 regional securities
exchanges (Over the Counter Exchange of India). However, due to strict regulations on the market economy
that only permitted a small number of monopolies to dominate their respective industries, the stock markets
in India remained stagnant. Many industry segments, which were controlled by the corporate sector, did not
permit corporate participation. By the state-controlled public sector, which caused economic stagnation up
until the 1990s until early.

The securities markets thereafter saw a rush of IPOS that were established as the Indian economy started to
liberalise and the regulations started to be removed or eased off. As a result, numerous new businesses in
various industry sectors developed fresher goods and services. A notable aspect of the Indian economy’s
recent expansion has been the role that the country’s securities markets have played in supporting and
igniting that growth with money that has increased within the economy. This stood in stark contrast to the
early stages of growth in many of the fast-growing East Asian nations, where massive amounts of FDI
(Foreign Direct Investment) were seen as growth-stimulating in the early stages of market decontrol. High
growth throughout this time in India’s organised sector has had a significant impact because the financial
markets were vital to sustaining the mobilisation of financial resources. The well-organized Indian securities
market provided support to numerous PSUs (Public Sector Undertakings) that chose to sell off a portion of
their shares.

The government of India established the National Stock Exchange (NSE) and the Over-the-Counter
Exchange of India (OTCEI) in the middle of the 1990s with the intention of bringing about a simpler and
more open method of trading stocks. The NSE and OTCEI were intended to serve as markets for dealing in
the securities of large- and small-scale businesses, respectively. While the OTCEI struggled and has yet to
exhibit any signs of growth or development, the NSE has done well to expand and transform into the virtual
backbone of the Indian financial markets. India’s world-class IT industry has made for exceptionally
seamless IT integration with the capital market infrastructure there. The Indian stock market’s operational

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effectiveness has been raised to international standards as a result, and as a result, the nation has been able to
take advantage of its rapid expansion and draw in foreign investment like never before.

The SEBI is responsible for regulating the capital markets in India (Securities and Exchange Board of India).
After some turmoil in the capital markets, SEBI gained notoriety in the 1990s. It was necessary to take
strong measures to close various loopholes that certain market forces were using to further their own
interests. SEBI has gained power as the authority over the Indian capital markets and as one of the most
significant institutions in the nation during this early period of adversity.

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History of Mutual Fund

On the initiative of the Indian government and reserve bank, Unit Trust of India was established in 1963,
marking the beginning of the mutual fund sector in that country. Indian mutual fund history can be broadly
classified into four main phases.

First Phase – 1964-1987

A parliamentary act created the Unit Trust of India (UTI) in 1963. It was established by the Reserve Bank of
India and operated under its regulatory and managerial oversight. The Industrial Development Bank of India
(IDBI) replaced the RBI as the regulatory and administrative authority over UTI in 1978 after it was de-linked
from the RBI. Unit Scheme 1964 was UTI’s first programme to be introduced. At the end of 1988, UTI had
assets under management totalling Rs. 6,700 crore.

Second Phase – 1987-1993 (Entry of Public Sector Funds)

1987 marked the entry of non-UTI, public sector mutual funds set up by public sector banks and Life Insurance
Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBI Mutual Fund was the first
non-UTI Mutual Fund established in June 1987 followed by Can bank Mutual Fund(Dec 87), Punjab National
Bank Mutual Fund (Aug 89),Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda
Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in
December 1990.

At the end of 1993, the mutual fund industry had assets under management of Rs. 47,004 crore.

Third Phase – 1993-2003 (Entry of Private Sector Funds)

With the entry of private sector funds in 1993, a new era started in the Indian mutual fund industry, giving the
Indian investors a wider choice of fund families. Also, 1993 was the year in which the first Mutual Fund
Regulations came into being, under which all mutual funds, except UTI were to be registered and governed.
The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund
registered in July 1993.

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual
Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund)Regulations 1996.

As The number of mutual fund houses went on increasing, with many foreign mutual funds setting up funds
in India and also the industry has witnessed several mergers and acquisitions. At the end of January 2003,
there were 33 mutual funds with total assets of Rs. 1, 21,805 crore. The Unit Trust of India with Rs. 44,541
crore of assets under management was way ahead of other mutual funds.

Fourth Phase – Since February 2003

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In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate
entities. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs.
29,835 crore as at the end of January 2003, representing broadly, the assets of US 64 scheme, assured return
and certain other schemes. The Specified Undertaking of Unit Trust of India, functioning under an
administrator and under the rules framed by Government of India and does not come under the purview of the
Mutual Fund Regulations. The second Is the UTI Mutual Fund, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile
UTI which had in March 2000 more than Rs. 76,000 crore of assets under management and with the setting
up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking
place among different private sector funds, the mutual fund industry has entered its current phase of
consolidation and growth.

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Parties Involved In Mutual Funds

It is the governing authority of stock market. Mutual funds legal framework is

SEBI regulated by SEBIs guidelines.

Investor is another speculator (who takes on high risks for high rewards)but one whose
investors primary objective are to safeguard the principle investment, a steady income and
capital appreciation.

The mutual fund has been formed as a public trust and trustees manage the trust. They
trustees are primarily accountable for protecting the interest of mutual fund investors.

SEBI approved asset management company manage the fund by making investment
asset in various types of securities. It manages the investment portfolios of the schemes and
management handles various other routine activities incidental to the mutual fund business. Its
company income comes from the management fees it charges for schemes it manages.

They earn commission for bringing in investors into the schemes of mutual fund. This
distributors commission is an expense for the schemes.
An investor holding in mutual fund schemes is typically followed by the schemes RTA
registers (Registrar and transfer Agent). Some AMC‟s prefer to handle it in house.

As the name suggests, a custodian of the securities preserves the custody of the
Custodian securities in which the scheme invests. Therefore, for an investment transaction of
mutual fund, custodian receives or gives delivery.

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 Regulatory Bodies of Securities Market.
Securities Exchange Board Of India (SEBI)

The Securities Exchange and Board of India was established by the Indian government on
April 12, 1988, through an administrative body, with the goal of promoting various corporate
Securities through various stock exchanges throughout India. Its main idea is to motivate
Investors and traders by defending the rights of investors. It is operating as one of those under
The Ministry of Finance’s administrative control. The Securities and Exchange Board of India
(SEBI) was given statutory standing on January 30, 1992, through a full official ordinance,
Which was eventually replaced by the Securities and Exchange Board of India Act, 1992, after
Minor revisions. In the 1980s, the capital market underwent a great deal of change. This rising
Market and investor participation The Securities Exchange and Board of India (SEBI)
Maintains systematic oversight and control over stock market activities. There are more than
26 stock exchanges in India that are listed under SEBI. The stock market offers a venue for
Traders and investors to buy and sell shares and mutual funds. Compared to the previous few
Decades, the percentages of investors and traders have significantly increased recently. Over
Time, as stock market operations were improved, security market fraud also occurred.
Misconduct examples include the existence of numerous illegal bank transactions, unofficial
Private placement in the business world, rigging of stock prices with unofficial participants in
The stock market, and violations of the listing requirements of the stock exchange that result
in Fines, the cancellation of trading shares, authority, and a delay in the delivery of shares,
among Others. Due to a lack of appropriate criminal provisions in India’s existing legislation,
the Governments of India, stock market exchanges, and stock market intermediaries were
unable To address the investor’s complaints.

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 Association Of Mutual Funds India (AMFI)

All regulations pertaining to mutual funds, AMCs, investors, and any other registered entity or person involved
In purchasing, selling, or administering mutual funds in India are set by the Association of Mutual Funds in
India. It also makes sure that SEBI, stock exchanges, and asset management firms quickly coordinate with one
Another and that all rules are rigorously followed. A major responsibility of AMFI is to protect investors’
Requirements and interests. To ensure that investors do not experience any discrepancy when buying or selling
Mutual funds, it integrates policies and procedures. When investors redeem their earnings, it also keeps an eye
On the transactions to guard against abuse. Additionally, AMFI makes sure that every transaction is
Transparent. It keeps a tight eye on the numbers involved in transactions, the funding sources, and makes sure
Both sides have the appropriate documents. In addition, it serves as a marketing tool by drawing in new
Investors. Since its formation, it has made constant attempts to increase an investor’s access to mutual funds.
A significant step toward the expansion of the mutual fund industry may be seen in the practical movement of
The sector to significant internet platforms. Additionally, AMFI makes sure that all parties engaged in the
Mutual fund industry are legitimate individuals or entities. This is accomplished by making it a requirement
That all AMCs, advisors, intermediaries, investors, and other interested parties register themselves before
Beginning any type of trading. The finest business practises in the mutual fund industry are promoted by
AMFI, Which is also in charge of developing all laws and regulations. It has a panel that considers, hears
testimony From, and then puts into operation numerous rules and regulations to guarantee efficient corporate
procedures.

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Asset Management Companies : There are Total 44 AMC registered in India They are as follows

1) Axis Asset Management Company Ltd.

2) Aditya Birla Sun Life AMC Limited
3) Baroda Asset Management India Limited
4) BNP Paribas Asset Management India Private Limited
5) BOI AXA Investment Managers Private Limited
6) Canara Robeco Asset Management Company Limited
7) DHFL Pramerica Asset Managers Private Limited
8) DSP Investment Managers Private Limited
9) Edelweiss Asset Management Limited
10) Essel Finance AMC Limited
11) Franklin Templeton Asset Management (India) Private Limited
12) HDFC Asset Management Company Limited
13) HSBC Asset Management (India) Private Ltd.
14) ICICI Prudential Asset Management Company Limited
15) IDFC Asset Management Company Limited
16) IDBI Asset Management Ltd.
17) IIFCL Asset Management Co. Ltd.
18) IL&FS Infra Asset Management Limited
19) India bulls Asset Management Company Ltd.
20) INVESCO Asset Management (India) Private Limited
21) ITI Asset Management Limited
22) JM Financial Asset Management Limited
23) Kotak Mahindra Asset Management Company Limited
24) L&T Investment Management Limited
25) LIC Mutual Fund Asset Management Limited
26) Mahindra Asset Management Company Pvt. Ltd.
27) Motilal Oswald Asset Management Company Limited
28) Mirae Asset Global Investments (India) Pvt. Ltd.
29) PPFAS Asset Management Pvt. Ltd.
30) IIFL Asset Management Ltd.
31) Principal Asset Management Pvt. Ltd
32) Quant Money Managers Limited
33) Quantum Asset Management Company Private Limited

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34) Reliance Nippon Life Asset Management Limited
35) Sahara Asset Management Company Private Limited
36) SBI Funds Management Private Limited
37 Shriram Asset Management Co. Ltd.
38) SREI Mutual Fund Asset Management Pvt. Ltd.
39) Sundaram Asset Management Company Limited
40) Tata Asset Management Limited
41) Taurus Asset Management Company Limited
42) Union Asset Management Company Private Limited
43) UTI Asset Management Company Ltd
44) NJ Asset management company

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Mutual Funds

A mutual fund is a type of professionally managed investment fund that pools money from many investors to
purchase securities such as stocks, bonds, money market instruments and other assets. Mutual funds are
operated by professional money managers, who allocate the fund’s investments and attempt to produce Capital
gains and/or income for the fund’s investors.

Some Key Features of a Mutual Fund are as Follows

➢ Professional Management
Each fund’s investments are chosen and monitored by qualified professionals who use this money to create
a portfolio. That portfolio could consist of stocks, bonds, money market instruments or a combination of
all of these.
➢ Fund Ownership
An investor owns shares of mutual fund, not the individual secures. Mutual funds permit the Investors to
invest small amounts of money. The pool can be used to buy even those securities which would have been
out of reach of a common individual investor. Thus investors in mutual funds benefit from being involved
in a large pool of cash invested by other people.
➢ Diversified Investment
Mutual funds have a diversified investment portfolio which helps in minimizing the risk as the fluctuation
in prices of the individual securities has less effect on the funds performance.

2.2 Benefits Of Mutual Funds

➢ Risk Diversification
Mutual funds help to diversify the risk associated with the securities, because overall risk of the particular
mutual fund is proportionately divided among all the unit holders of mutual fund.
➢ Operated by Professional Manager
Mutual funds are kept and operated by the professional managers who are professional in this Particular
field so the unit holders enjoy the professional Operation on these mutual funds.
➢ Passive Investment Style
Mutual fund is a passive investment style in which the owners of the unit holders do not participate directly
but they keep these units passively. They don’t need to participate directly they only have to purchase the
units and keep them in passive way.

2.3 Classification of Mutual Funds

Based on Maturity Period

➢ Open-Ended Funds:
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 An open ended fund is a fund that is available for subscription and can be redeemed on a Continuous basis.
It is available for subscription throughout the year and investors can buy and sell units at NET ASSET
VALUE (NAV) related prices. These funds do not have a fixed maturity date. The key feature of an open-
ended fund is liquidity.
➢ Close-Ended Funds:
A close ended fund is a fund that has a defined maturity period, for example 5-7 Years. These Funds are
open for subscription for a specified period at the time of initial launch. These funds are listed with a
recognized stock exchange.
➢ Exchange Traded Funds:
Exchange traded funds combine the features of open-ended and close-ended funds. These funds may trade
on stock exchanges and are open for sale or redemption at predetermined intervals on the prevailing NET
ASSET VALUE (NAV).
➢ Unit Investment Trusts:
UTIs are also issued to the public only once when they are created. They have a fixed maturity period and
a fixed portfolio of securities which is determined at the time of creation.

2.4 Based on Investment Objectives or Asset Class

➢ Equity/Growth Funds:

Equity funds invest minimum 65% of its corpus in equity and equity related securities. These funds may invest
in a wide range of industries or focus on one or more industry sectors. These types of funds are suitable for
investors with a long-term outlook and higher risk appetite.

Types of Equity Funds:

a) Large Cap Fund:

An open ended equity schemes predominantly investing in large cap stocks. The minimum Investment in
equity and equity related instruments of large cap companies shall be 80 % of total asset.
b) Mid Cap Fund:
An open ended equity schemes predominantly investing in mid cap stocks. The minimum Investment in
equity and equity related instruments of large cap companies shall be 65 % of total asset.
c) Small cap Fund:
An open ended equity schemes predominantly investing in small cap stocks. The minimum Investment in
equity and equity related instruments of large cap companies shall be 65 % of total asset.
d) Multi Cap Fund:
An open ended equity scheme investing in across large cap, mid cap, small cap stocks. The minimum
investment in equity and equity related instruments of large cap companies shall be 65 % of total asset.
e) ELSS (Equity linked saving schemes):

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 An open ended equity linked saving schemes with a statutory lock in of 3 years and tax benefit. The
minimum investment in equity and equity related instruments shall be 80 % of total asset.
➢ Debt/Income Funds:

Debt/income funds generally invest in securities such as bonds, corporate debentures, government Securities
and money market instruments. These funds invest minimum 65% of their corpus in fixed Income securities.
By investing in debt instruments, these funds provide low risk and stable income to investors with preservation
of capital. These funds tend to be less volatile than equity funds and produce regular income.

Types of Debt fund:

a) Liquid Fund:
An open ended liquid scheme whose investment is into debt and money market securities with maturity of
up to 91 days only.
b) Ultra Short Duration Fund:
An open ended Ultra-Short term debt schemes investing in debt and money market instruments with
Macaulay duration between 3 months and 6 months.
c) Low duration fund:
An open ended low duration debt scheme investing in debt and money market instruments Macaulay
duration between 6 months and 12 months.
d) Short duration Fund:
An open ended short term debt scheme investing in debt and money market instruments having maturity
up to 1 year.
e) Medium to Large Duration Fund:
An open ended medium term debt scheme investing in debt and money market instruments with Macaulay
duration between 4 years and 7 years. Portfolio Macaulay duration greater than 7 years.
f) Money Market Fund:
An open ended debt scheme investing in money market instruments having maturity up to 1 year.
g) Corporate Bond Fund:
An open ended debt scheme predominantly investing in AA+ and above rated corporate bonds. The
minimum investment in corporate bonds shall be 80 percent of total assets.
➢ Balanced/Hybrid Funds:

Balanced Funds invest in both equities and fixed income instruments in line with the pre-determined
investment objective of the scheme. These funds provide both stability of returns and capital appreciation to
investors.

Types of Hybrid Funds

a) Aggressive Hybrid Fund:

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 An open ended hybrid scheme investing predominantly in equity and equity related Instruments. Invest in
equity and equity related instruments shall be between 65 percent and 80 Percent of total asset while
investment in debt instrument shall be between 20 percent and 35 Percent of total asset.
b) Balanced Hybrid Fund:
An open ended scheme investing in equity and debt instruments. The investment in equity and equity
related instruments shall be 40 percent and 60 percent of total assets while investment in Debt instrument
shall be between 40 percent and 60 percent. No arbitrage is permitted in these schemes
c) Conservative Hybrid Fund:
An open ended hybrid scheme investing predominantly in debt instruments shall be between 75 Percent
and 90 percent total asset while in equity and equity related instruments shall be 10 Percent and 25 percent
of total assets.

❖ Other Schemes

➢ Tax Saving Funds:

Tax-saving schemes offer tax rebates to investors under specific provisions of the Income tax Act1961.
These are growth-oriented schemes and invest primarily in equities. Like an equity Scheme, they largely
suit investors having a higher risk appetite and aim to generate appreciation Over medium to long run.

➢ Index Funds:
Index Funds replicate the performance of a particular index such as the BSE Sensex or the S&P CNX
Nifty. The portfolio of these schemes consist of only those stocks that represent the index And the
weightage assigned to each stock is aligned to the stock‟s weightage in the index.

➢ Sector-Specific Funds:
Sector-specific Funds invest in the securities of only those sectors or industries as specified in the Scheme
information department. The returns in these funds are dependent on the performance of The respective
sector/industries.

2.5 .Important Key Words Related To Mutual Funds

➢ NAV: Net asset value refers to the total value of the related mutual fund scheme. It shows the Overall
value which may vary everyday as per the changes in the market.
➢ Units: The value of mutual fund is divided into units as per the number of persons it is sold. The Value of
each unit changes every day.
➢ Unit holder: The investor who purchases the units of mutual funds is called unit holder. He/she May keep
as many units as he/she wants.

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 CHAPTER 2
REVIEW OF LITERATURE

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1) Dr.K.M.Sudha Conducted research on “Comparative Study on Selected Mutual Fund”. The study’s
goal is to compare the performance of a few chosen mutual funds over a five-year period, as well as their risks
and returns. This study assesses the five-year analysis of returns and their volatility based on investment.
Secondary data are the information sources. Simple average methods, standard deviation methods, basic
comparative analysis methods, and ranking methods are the instruments utilised for analysis. According to the
research, investing in the equities fund category is not advised because the market’s volatile asset components
provide a high risk.

2) Shivam Tripathi, Dr. Gurudutta P. Japee Conducted research on “Performance Evaluation of

Selected Equity Mutual Funds in India” The study’s goals were to determine if mutual funds reward
variability and unpredictability as well as to correlate securities market return with fund return. Secondary
data is collected from a variety of sources, including factsheets from various AMCs, historical NAV data, and
annual return data. Jenson’s alpha, beta, standard deviation, and Sharpe ratio are statistical tools. The
performance analysis of the 15 equity funds that were chosen clearly showed that 10 of the funds fared well
during the research, whereas 5 did not. The study’s conclusions show that fluctuations in the performance of
different equities are caused by market volatility.

3) Anuja Magdum Conducted research on “A Comparative study on Mutual Fund Schemes of Selected
AMC’s in India”. This study compares the mutual fund offerings of a few Indian AMCs from the public and
private sectors in order to offer greater returns on the schemes that AMCs guarantee. Data was gathered for
the study in order to compare 4 AMCs with one another during a 5-year period. Fixed deposit rates are utilised
for a risk-free return, and data is gathered from the value research, AMFI, and yahoo finance websites. Beta
and CAGR were the study methodology used. The study looked at how equity-based mutual fund schemes in
India performed, and it found that the private sector did better than the public sector

4) Dr. Nidhi Sharma The study’s goal is to evaluate and contrast the performance of a few Indian hybrid
mutual fund schemes. The top 10 rankings provided by CRISIL, which are based on the NAVs of the schemes,
are used to choose the hybrid schemes. NAV, one of the technologies utilised in this study, is used to collect
primary data.

5) Manisha Raj Conducted research on “Performance of Mutual Funds in India: A Comparative

Analysis of SBI Mutual Funds and HDFC Mutual Fund.” The study’s goal is to evaluate and contrast SBI
and HDFC mutual fund performance, particularly with regard to equity and balanced mutual funds. The study
is based on the examination of secondary information that was gathered by reading numerous research papers
and articles written by various writers. Standard deviation, beta, alpha, the Sharpe ratio, and the correlation
coefficient are the tools used in the study. The study discovered that HDFC has a higher rate of return than
SBI.

6) Anil Kumar Goyal Conducted research on “A comparative study of return of Selected mutual fund
schemes with nifty50”. The study’s goal is to compare the typical long-term mutual fund of each chosen
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company with the nifty50 mutual fund. The research approach is based on secondary data for NAVs and the
Nifty50 that was gathered online over a one-year period. The price of the Nifty50 was obtained from Yahoo
Finance. The results of this study show that SBI is superior in terms of volatility and returns when the chosen
schemes are compared to the benchmark nifty50’s monthly average long return.

7) Nadia Conducted research on “A Comparative Analysis of Mutual Fund Schemes” The goal is to
evaluate the risk and return of the chosen fund schemes to the BSE-Sensex and to determine if they are
outperforming or underperforming the market index in terms of performance. Primary and secondary data are
used in the study technique. Secondary information gathered from a variety of sources. The data are measured
using the coefficient of determination, beta, alpha, and standard deviation. This study’s conclusion is that the
14 schemes outperformed the benchmark returns.

8) Rani Conducted research on “Performance Analysis of Mutual Funds: A Study on Balanced

Schemes”. The study’s goal is to evaluate the performance of various mutual funds from the public and private
sectors, focusing on their balanced schemes over the course of the investigation. The quantitative outcomes of
particular schemes are the fundamentals of data analysis. This report gives information on India’s whole
mutual fund sector for the calendar year 2018.

9) Anand Conducted research on “A Comparative Analysis on Various Mutual Fund Schemes of HDFC
and SBI as an Investment Option for Retail Investors in India”. The goal of the study is to compare the
performance of a sample of mutual funds, assess risk and return using a variety of statistical tools, including
the Capitalized Annual Growth Rate (CAGR), beta, standard deviation, sharpe ratio, and other parameters,
and determine which mutual fund scheme offers the best return. In this study, the researcher compares six
mutual fund schemes, including equity, debt, balanced, and sector-specific funds, using random samplings.
According to the study’s findings, mutual funds offer a professional approach to investing.

10) N.Nandhini Devi, Dr.A.Velanganni Josep Conducted research on “Determinants of Mutual Fund
Selection by Individual Investors in Coimbatore City”. Examining the elements thought to be crucial in
choosing a mutual fund and determining how information affects investors in mutual funds are the goals of
this study. In order to achieve the goal, a questionnaire survey was created to determine the fund selection
standards used by mutual fund investors. The study’s findings, which were drawn from an analysis of
responses from 526 individual mutual fund investors in Coimbatore city, and a print media source, had a
significant impact on mutual fund investors’ decision-making.

11) Dr M.Ravichandran Conducted research on “A study on performance Evaluation mutual fund

schemes in India”. The goal of the research was to determine the open ended equity mutual fund schemes’
performance, quantify it, analyse the risk and return associated with it, and assess potential future investments
in such schemes. Data is gathered systematically in preparation for analysis. The information is gathered from
a number of sources, including the BSE in India and the Association of Mutual Funds in India. In this study,
the Sharpe ratio, Treynor ratio, Jensen ratio, beta, and standard deviation are employed as tools and
26
methodologies for analysis. This study looked into performance results that could help investors make wiser
investing decisions.

12) Renuka Conducted research on “A Comparative Study on Performance of Mutual Funds and Its
Schemes in India.” The goal of the study is to learn more about mutual funds and to get a sense of how they
might be regulated in India. Using an approach that includes average return, standard deviation, beta, and R-
Square, the performance of particular funds is assessed. In order to help regular investors make informed
investment decisions and allocate their funds to the appropriate mutual fund schemes, this study offers some
insights on mutual fund performance.

13) N.Bhagyasree Conducted research on “A Study on Performance of Mutual Funds in India” The
mutual fund is performing safely for the investor, which is the study’s goal. Shape, Treynor, Jenson, beta, and
standard deviation ratios are among the tools and methods employed in this study. The study’s findings
revealed that mutual funds were performing very safely for investors and that there was sufficient oversight to
enable an investor to make the proper choice.

14) R. Kumar Gandhi Conducted research on “Performance of Selected Bank Mutual Fund Schemes
Impact in Investors Decision Making”. The goal of the research is to evaluate any mutual fund schemes in
the chosen banks and examine the performance using various parameters. The convenience sampling
technique is used, with a sample size of 4 schemes drawn from public and private banks over the course of a
year. The instruments for measuring using the Treynor, Sharpe, and beta ratios. Data analysis uses returns
from the previous year as a comparison. The results show that the Canara Robeco equity tax-saving
programmes have been quite successful.

15) Satheesh Kumar Rangasamay, Dr. Vetrivel T. Athika M Conducted Research on “A Comparative
Study on Performance of Mutual Funds with Reference to Indian Context”. The study’s goals include
decision-making with regard to the chosen categories of mutual fund schemes as well as comparative
performance analysis of a few mutual fund schemes in various categories. The NSE, BSE, and money control
are used to get the data. Standard deviation, the simple average method, and the ranking approach are the
instruments used in this study. The research’s findings are intended to assist investors in comprehending the
various mutual fund types and assessing performance benchmarks.

16) Arthy B, Conducted research on “A Study on Factor Affecting Investment on Mutual Fund and Its
Preference of Retail Investors”. The objective of the study is to analyse the factor influencing investing
decisions of retail investors in mutual funds and investor perception and preference towards mutual
funds. The research methodology used for this study descriptive research design used in this study. The
research instrument used in the study is questionnaire and personal interview method. The sample size of the
study s limited to 200 investors. The samplings are using snowball sampling and random sampling. The
findings that the tax benefits, high return, price and capital appreciation is some major factors influence on
investor decision making.
27
17) Dr. Shriprakash Soni, Conducted research on “Comparative Analysis of Mutual Fund Schemes
available Kotak Mutual Fund and HDFC Mutual Fund”. The objective of the study is to analyze and
compare the performance of different mutual fund schemes and also know the factor and those affect the
mutual fund and find out the best scheme available for investors by comparing their performance. The research
are using with secondary data and using convenience sampling and time period of study is 5 years. The tools
and techniques are used in research in standard deviation, Sharpe ratio, beta, alpha and R-square. Findings of
the study is the companies are offering similar types of schemes available for sectors and taking amount of
risk, so they provide close returns with minimum fluctuation.

18) Ganapathi, Conducted research on “Mutual Fund: An Empirical Study With Reference To
Coimbatore City”. The objective is to evaluate the performance of selected mutual fund on the basis of risk-
return relationship and to examine the retail investor’s perception towards mutual fund with reference to
Coimbatore city. The methodology used for this study is to analyse the growth and evaluate the performance
of mutual fund industry in India. To analyse the perception of retail investor towards mutual fund investment
for the decided period of time. The sample of 150 investors based on Quota sampling was used to select the
respondent around the Coimbatore city. The data collected through questionnaire and the findings of this
research that due to inability and improper management of fund manager have given a negative differential
return.

19) Ms. Shilpi Pal, Conducted research on “A Critical Analysis of Selected Mutual Funds in India”. The
objective of the study is to study the performance of top 10 equity mutual fund schemes in various categories
and also compare the equity mutual fund. The research methodology is collecting the structural process of
conducting the research. The tools for measuring by the standard deviation, beta, alpha, Treynor and Sharpe
ratio. Return for last one year are comparison for data analysis. The sampling has been done on the basis of
CRISIL rating. The study was found out that the midcap opportunity for invest in the mutual fund having the
better return.

20) Badrivishal, Conducted research on “A study on Mutual Fund with Due Reference to „SBI Mutual
Funds”. The objective of this project is to study about behavior of the investors for preferring mutual funds
and understand the risk and return of the various schemes and also the productive avenue to invest in contrast
to laxity of bank investing. Then after their research design and also the nominal and interval scale are using
for data analysis. There are 50 respondents in which investors and non-investors are there. The can be collected
both primary and secondary sources. The finding of this project is the highest number of investor come from
salarie.d class and their 6% invest of their annual income in mutual fund.

21) Dr Sarita Bhal, Conducted research on “A Comparative Analysis of Mutual Fund Schemes in
India”. The objective of the study to examine the performance of selected schemes on the basis of risk and
return and compare the performance of selected schemes with benchmark index to see the schemes is
outperforming and underperforming the benchmark. The research methodology is to select random basis and

28
monthly NAV of different schemes have been used for this study for the period of five years. In this study the
secondary data are used and the calculation done through standard deviation, beta, alpha and also consider the
market risk. The data are measured by the Sharpe, Jenson and Treynor ratios. For the research study the all
schemes are provide the positive returns.

22) Sahil Jain, Conducted research on “Analysis of Equity Based Mutual Fund in India”. The objective
if the study is to bring out a comparison between the performance of equity- based mutual funds of public and
private sector, in India. The basic tool used is CAPM (capital asset pricing model) and calculate the expected
rate of return for a portfolio, given its risk. The analysis is based on the risk-return relationship of mutual fund.
The analysis finds that the private sector mutual funds have outperformed the public sector.

23) Subrata Roy, Conducted research on “A Comparative Study of Mutual Fund Performance during
Recession in India”. The objective of the study is to examine the comparative risk-adjusted performance and
also comparative market timing performance of the companies. The sample consists of 31 open ended Gilt
type of mutual fund schemes selected from the public sector mutual fund. For the analysis of data the Treynor
ratio tools are used for measuring performance and the volatility ratio. The researcher can be observed that the
performance of the open ended gilt schemes of different types of companies is not satisfactory during the
recession.

24) Deepika Sharma, May, Conducted research on “Comparative study of Selected Equity diversified
Mutual Fund Schemes”. The main objective of this study is to compare and analyse the equity diversified
mutual fund schemes of selected mutual fund players. The data are collected through the 3 criteria in which a)
corpus size > 500 crore, b) Returns of 5 years, c) top 8 schemes on the basis of 5 years compounded annualized
returns. The tools and techniques used in study is standard deviation, Sharpe ratio to measures volatility of
returns. The samples are selected on the basis of returns of last one month, six months, one year, three year
and five year. The performance evaluated through the alpha, beta, SD, r square, expenses ratio. The analysis
on the basis of returns over period if the time. Findings of the study is that in short run HDFC manages to be
a number one in terms of returns and in long run reliance number one position in terms of returns of last five
years.

25) Y.Maheshwari Conducted research on “A Comparative Study on Performance of Selected Mutual

Fund in India.” The objective of the study is to analyse the return from selected mutual fund return for the
study period and performance of mutual funds with extraordinary reference to Sharpe model and Treynor
model. The tools and techniques incorporate standard deviation, beta, alpha, Treynor and Sharpe ratio. The
information are collected from different sources like published annual reports of sponsoring agencies, online
bulletins, journal books, magazines etc. the result for the study that the negative returns with reference to lesser
then the benchmark.

29
 Objectives

The objective of the study is to analyses, in detail the growth pattern of the mutual funds industry in India
and to evaluate performance of different schemes floated by most preferred Mutual Funds in public fund in
public and private sector.

The Main Objectives of this project.

1. To Study about the Mutual Funds in India

2. To Study about returns of the Mutual Funds
3. To give brief Idea about mutual funds available in India
4. To give an idea about the schemes available
5. To study market trends in mutual funds
6. To study some mutual fund companies and their funds
7. To give idea about the regulation of mutual fund
8. To study about mutual fund schemes

30
 CHAPTER 3
DATA ANALYSIS & INTERPRETATION

31
➢ Research problem

“A Study on Comparative Analysis of Mutual Fund Schemes”

In a comparative market there are multiple mutual funds working in the Indian market. It is Necessary to know
mutual fund as the performance of the mutual fund decides the future of Mutual Fund Company. In my study
I have compared 5 AMC‟s with each other and in which AMC performance is better than the other AMCs.

➢ Sample Design

The research is based on the descriptive type of research design used in this research project.

➢ Sources of Data

The sources of data are collected from the based on the secondary data. Data are collected through Online
sources like NSE, BSE, and Money control, ET Money, Fincash and Morning Star etc.

➢ Data collection

Secondary data has been used for this research, collected from various research papers. The study Consider
the period of 5 years from 2016 to 2020.

➢ Tools and Techniques

Statistical tools and techniques used in this study is Alpha, Beta, standard deviation, Sharpe ratio To measures
volatility of returns.

1. . Alpha

Alpha is a risk-adjusted return metric. It is a measure that compares a fund’s performance to its benchmark. A
fund with alpha zero means it has delivered the same returns as the benchmark. A negative alpha indicates that
the fund has underperformed its benchmark. On the other hand, alpha greater than one indicated the fund’s
outperformance.

𝐴𝑙𝑝ℎ𝑎
= (𝑀𝑢𝑡𝑢𝑎𝑙 𝐹𝑢𝑛𝑑 𝑅𝑒𝑡𝑢𝑟𝑛 – 𝑅𝑖𝑠𝑘 𝐹𝑟𝑒𝑒 𝑅𝑒𝑡𝑢𝑟𝑛 (𝑅𝑓­)) – [(𝐵𝑒𝑛𝑐ℎ𝑚𝑎𝑟𝑘 𝑅𝑒𝑡𝑢𝑟𝑛 – 𝑅𝑖𝑠𝑘 𝐹𝑟𝑒𝑒 𝑅𝑒𝑡𝑢𝑟𝑛 (𝑅𝑓­))
∗ 𝐵𝑒𝑡𝑎]

Alpha determines how much return you can expect from your mutual fund investment. When you look at the
Alpha value of a mutual fund, you can estimate how much return the fund can potentially generate. Although
a higher Alpha number can signal higher returns, it isn’t the only indicator to use when evaluating a fund’s
performance.

32
2. Beta

Beta measures the sensitivity of a mutual fund towards the dynamic market movements. It’s a metric that
measures how volatile a mutual fund portfolio is in comparison to the overall market. Looking at a mutual
fund’s beta, you can get a sense of how the fund responds to market fluctuations. The beta of a market or
benchmark is always one. A beta of less than one suggests lesser volatility when compared to the benchmark
index. A beta greater than one suggests a high level of volatility.

𝐵𝑒𝑡𝑎 = (𝑀𝑢𝑡𝑢𝑎𝑙 𝐹𝑢𝑛𝑑 𝑅𝑒𝑡𝑢𝑟𝑛 – 𝑅𝑖𝑠𝑘 𝐹𝑟𝑒𝑒 𝑅𝑎𝑡𝑒 (𝑅𝑓­))

/ (𝐵𝑒𝑛𝑐ℎ𝑚𝑎𝑟𝑘 𝑅𝑒𝑡𝑢𝑟𝑛 – 𝑅𝑖𝑠𝑘 𝐹𝑟𝑒𝑒 𝑅𝑎𝑡𝑒 (𝑅𝑓­))

You can decide whether or not to include a mutual fund in your investment portfolio based on its beta value.
Risk-averse investors should ideally choose funds with a beta less than 1, while risk-takers can pick funds with
a high beta (greater than 1). Though beta can help you understand how risky a mutual fund is. It doesn’t give
you any information about the fund’s inherent or absolute risk.

3. Standard Deviation

Standard deviation measures the dispersion of data from its mean. Basically, the more spread out the data, the
greater the difference is from the norm. In finance, standard deviation is applied to the annual rate of return of
an investment to measure its volatility (risk). A volatile stock would have a high standard deviation. With
mutual funds, the standard deviation tells us how much the return on a fund is deviating from the expected
returns based on its historical performance.

4. Sharpe Ratio

The Sharpe ratio tells investors whether an investment's returns are due to wise investment decisions or the
result of excess risk. This measurement is useful because while one portfolio or security may generate higher
returns than its peers, it is only a good investment if those higher returns do not come with too much additional
risk. The greater an investment's Sharpe ratio, the better its risk-adjusted performance.

It is calculated by subtracting the risk-free rate of return from the rate of return for an investment and dividing
the result by the investment’s standard deviation of its return.

5. Treynor’s ratio

indicates how much excess return was generated for each unit of risk taken. Higher the value means, fund has
been able to give better returns for the amount of risk taken. It is calculated by subtracting the risk-free return,
defined as an Indian Government Bond, from the fund’s returns, and then dividing by the beta of returns.

33
➢ Sample Size

For this study 5 AMCs have been selected.

1. ICICI Prudential Mutual Fund

2. HDFC Mutual Fund

3. Aditya Birla Sun Life Mutual Fund

4. Nippon Mutual Fund

5. SBI Mutual Fund

34
 EQUITY FUNDS
ICICI HDFC ABSL NIPPON SBI MUTUAL
PRUDENTIAL MUTUAL MUTUAL INDIA FUND
MUTUAL FUND FUND MUTUAL
FUND FUND
Large Cap ICICI HDFC Top 100 ABSL frontline Nippon India SBI blue-chip
prudential blue- Fund equity fund large cap fund fund
chip fund
Midcap ICICI HDFC midcap ABSL mid cap Nippon growth SBI Magnum
prudential opportunities fund fund midcap fund
midcap fund fund
Multi cap ICICI HDFC flexi cap ABSL equity Nippon multi SBI Magnum
prudential multi fund fund cap fund multi cap fund
cap fund
Small cap ICICI HDFC small ABSL small Nippon small SBI small cap
prudential small cap fund cap fund cap fund fund
cap fund
ElSS ICICI HDFC tax ABSL tax relief Nippon tax SBI long term
prudential long saver fund 96 saver fund equity fund
term equity
fund (tax
saving)

35
 DEBT Funds

Low duration ICICI HDFC low ABSL low Nippon low SBI Magnum
fund prudential duration fund duration fund duration fund loan duration
savings fund fund
Short duration ICICI HDFC short ABSL short Nippon short SBI short term
fund prudential short term debt fund term term fund debt fund
term fund . opportunities
fund .
Ultra short ICICI HDFC ultra ABSL savings Nippon ultra SBI Magnum
duration fund prudential ultra short term fund fund short duration ultra short
short term fund fund duration fund
Medium ICICI HDFC medium ABSL medium Nippon India SBI Magnum
duration fund prudential term debt fund term plan classic bond medium
Medium term fund . duration fund
bond fund
Liquid fund ICICI HDFC liquid ABSL liquid Nippon liquid SBI liquid fund
prudential fund fund fund
liquid fund
Money market ICICI HDFC money ABSL money Nippon money SBI savings
fund prudential market fund manager fund market fund fund
money market
fund
Corporate bond ICICI HDFC ABSL Nippon prime SBI corporate
fund prudential corporate bond corporate bond debt fund bond fund
corporate bond fund fund
fund

36
 EQUITY FUND

Large cap fund

Large cap fund ICICI HDFC Top ABSL Nippon India SBI Blue chip
prudential 100 fund frontline equity large cap fund fund
blue-chip fund
fund
5 years return 11.33 10.93 9.58 11.17 8.36a
Alpha 1.93 1.87 0.66 0.65 1.26
Beta 0.94 0.97 0.92 0.97 0.96
Sharp ratio 0.57 0.56 0.49 0.55 0.53
Treynor ratio 0.13 0.13 0.11 0.12 0.12
S.D 20.66 21.62 20.81 21.94 21.24
NAV 66.1 720.957 330.73 52.69 60.5211
AUM( in CR) 34198.52 22139.22 21131.98 12524.53 33987.07

The table and chart are representing the large cap fund 5 year return, Alpha, Beta, Sharpe Ratio, treynor ratio
and SD of the all 5 selected AMC‟s. .A higher standard deviation indicates greater price volatility and risk.
Therefore ICICI has less SD. A higher Sharpe Ratio suggests a better risk-adjusted return ie ICICI has high
Sharpe Ratio compared to other. A beta of 1 means the fund moves in line with the market, while a beta
greater than 1 indicates higher volatility. A beta less than 1 suggests lower volatility. Ie ICICI has lower beta
compared to others and also less than 1 .higher Treynor Ratio implies better risk-adjusted performance hence
ICICI Prudential has 0.13 which only is same as HDFC . By analysing all risk ratios it’s can be seen that ICICI
Prudential gives better returns as compared to others .and is advisable to invest .

37
2.Mid cap fund
Mid cap fund ICICI HDFC mid cap ABSL mid cap Nippon growth SBI Magnum
prudential opportunities fund fund mid cap fund
mid cap fund
fund
5 years return 10.72 12.200 7.08 14.49 12.27
Alpha 0.27 2.61 -1.34 -0.43 3.88
Beta 0.88 0.86 0.85 0.92 0.87
Sharp ratio 0.66 0.78 0.59 0.73 0.93
Trey nor ratio 0.16 0.19 0.14 0.16 0.21
S.D 20.99 20.24 20 20.22 19.54
NAV 171.67 98.679 430 2213.4994 141.3884
AUM( in CR) 3492.87 35009.74 3436.95 12524.53 8732.60

The table and chart are representing the mid cap fund 5 year return, Alpha, Beta, Sharpe Ratio, treynor ratio
and SD of the all 5 selected AMC‟s. .A higher standard deviation indicates greater price volatility and risk.
Therefore SBI has less SD. A higher Sharpe Ratio suggests a better risk-adjusted return ie SBI has high Sharpe
Ratio compared to other. A beta of 1 means the fund moves in line with the market, while a beta greater than
1 indicates higher volatility. A beta less than 1 suggests lower volatility. Ie SBI has lower beta compared to
others and also less than 1 .higher Treynor Ratio implies better risk-adjusted performance hence SBI has higher
Treynor ratio By analysing all risk ratios it’s can be seen that SBl midcap gives better returns as compared to
others .and is advisable to invest .

38
3 Small cap funds
Small cap fund ICICI HDFC small ABSL small Nippon small SBI small cap
prudential cap fund fund fund fund
small cap
fund
5 years return 14.73 12.24 3.97 15.63 15.60
Alpha 10.59 4.46 2.59 7.81 5.82
Beta 0.74 0.89 0.84 0.92 0.77
Sharp ratio 0.91 0.98 0.61 1.12 1.00
Trey nor ratio 0.25 0.23 0.15 0.26 0.21
S.D 19.98 20.64 21.24 21.24 23.43
NAV 56.9 78.849 48.7363 89.6879 120.04
AUM( in CR) 4618.03 14648.76 2901.5 23910.18 15395.39

The table and chart are representing the small cap fund 5 year return, Alpha, Beta, Sharpe Ratio, treynor ratio
and SD of the all 5 selected AMC‟s. .A higher standard deviation indicates greater price volatility and risk.
Therefore ICICI has less SD. A higher Sharpe Ratio suggests a better risk-adjusted return ie Nippon small cap
fund has high Sharpe Ratio compared to other. A beta of 1 means the fund moves in line with the market,
while a beta greater than 1 indicates higher volatility. A beta less than 1 suggests lower volatility. Ie Nippon
has lower beta compared to others and also near to 1.higher Treynor Ratio implies better risk-adjusted
performance hence Nippon has higher Treynor ratio By analysing all risk ratios except SD it can be seen that
Nippon smallcap fund gives better returns as compared to others .and is advisable to invest ..
39
4.multi cap fund
Multi cap fund ICICI HDFC multi ABSL multi Nippon multi SBI multi cap
prudential cap fund cap fund cap fund fund
multi cap
fund
5 years return 10.76 13.32 9.28 13.14 10.68
Alpha 2.94 4.38 -1.84 4.89 -2.3
Beta 0.88 0.99 0.99 0.94 0.9
Sharp ratio 0.58 0.73 0.41 0.64 0.44
Trey nor ratio 0.14 0.16 0.09 0.16 0.1
S.D 20.69 22.06 21.42 22.63 19.66
NAV 448.95 1106.092 1073.57 173.2372 79.7579
AUM( in CR) 6289.06 31672.65 2901.5 14091.96 15395.39

The table and chart are representing the flexicap fund 5 year return, Alpha, Beta, Sharpe Ratio, treynor ratio
and SD of the all 5 selected AMC‟s. .A higher standard deviation indicates greater price volatility and risk.
Therefore SBI has less SD. A higher Sharpe Ratio suggests a better risk-adjusted return ie HDFC flexi cap
fund has high Sharpe Ratio compared to other. A beta of 1 means the fund moves in line with the market,
while a beta greater than 1 indicates higher volatility. A beta less than 1 suggests lower volatility. Ie HDFC
has lower beta compared to others and also near to 1.higher Treynor Ratio implies better risk-adjusted
performance hence Nippon & HDFC higher Treynor ratio By analysing all risk ratios except SD it can be seen
that HDFC flexi cap fund gives better returns as compared to others .and is advisable to invest ..

40
5. ElSS Funds
ElSS fund ICICI HDFC Tax ABSL Tax Nippon tax SBI Magnum
prudential saver fund relief 96 fund saver fund tax saving
long term scheme
equity fund
(tax
saving)
5 years return 10.31 9.47 4.43 5.39 10.95
Alpha 1.08 2.02 -7.97 0.7 2.06
Beta 0.93 0.93 0.86 0.95 0.9
Sharp ratio 0.54 0.64 0.11 0.49 0.66
Trey nor ratio 0.12 0.14 0.02 0.11 0.14
S.D 20.27 20.44 18.98 21.36 19.71
NAV 567.76 786.708 37.91 75.944 230.6776
AUM( in CR) 9819.278 31672.65 12755.21 14091.96 12158.347

The table and chart are representing the ELSS fund 5 year return, Alpha, Beta, Sharpe Ratio, treynor ratio and
SD of the all 5 selected AMC‟s. .A higher standard deviation indicates greater price volatility and risk.
Therefore ABSL has less SD. A higher Sharpe Ratio suggests a better risk-adjusted return ie SBI tax saving
fund has high Sharpe Ratio compared to other. A beta of 1 means the fund moves in line with the market,
while a beta greater than 1 indicates higher volatility. A beta less than 1 suggests lower volatility. Ie Nippon
tax saver fund has lower beta compared to others and also near to 1.higher Treynor Ratio implies better risk-
adjusted performance hence HDFC & SBI higher Treynor ratio By analysing all risk ratios it can be seen that
SBI Magnum tax saving fund gives better returns as compared to others and is advisable to invest .

41
 Debt Fund

• Low duration Fund

Fund name AUM( in cr) NAV Returns % as on 31st March 2023
1 year 3 year 5 year
ICICI prudential savings fund 21144.67 456.9105 5.59 5.69 6.52
HDFC Low duration fund 14779.54 49.0228 4.81 5.27 6.03
Nippon Low duration fund 6232.36 3187.3143 4.67 5.09 5.89
SBI Low duration fund 7717.27 2979.5966 4.71 4.64 5.85
ABSL Low duration fund 10045.46 564.303 5.26 5.20 6.14

The table and the chart representing low duration funds , their Asset under management (AUM) , Net asset
value ( NAV) and 5 years return of all the 5 selected Asset Management Company (AMC). Debt funds can
Abe analysed by AUM and past performance hence from the above chart ICICI prudential has given high
returns as compared to others and also the AUM of fund house is highest amongst all.

42
• Short duration fund
Fund name AUM( in cr) NAV Returns % as on 18th April 2023
1 year 3 year 5 year
ICICI prudential Short term 14797.18 50.7413 6.42 6.39 6.95
fund
HDFC Short term debt fund 11490.97 26.9649 5.41 6.04 6.97
Nippon Short term fund 5376.09 44.6371 4.77 5.63 6.40
SBI Short term debt fund 12094.16 27.2786 4.98 5.29 6.30
ABSL Short term fund 4829.25 40.3152 5.61 6.60 6.86

The table and the chart representing low duration funds , their Asset under management (AUM) , Net asset
value ( NAV) and 5 years return of all the 5 selected Asset Management Company (AMC). Debt funds can
Abe analysed by AUM and past performance hence from the above chart ICICI prudential has given high
returns as compared to others and also the AUM of fund house is highest amongst all.

43
• Ultra Short Duration Fund
Fund name AUM( in cr) NAV Returns % as on 18th April 2023
1 year 3 year 5 year
ICICI prudential Ultra Short 10735.33 23.7013 5.56 5.15 6.13
term fund
HDFC Ultra Short term fund 11346.97 12.9718 5.52 4.91 5.87
Nippon Ultra Short Duration 3906.64 3464.6979 5.47 6.02 5.09
fund
SBI Magnum Ultra Short 8969.57 5114.451 5.46 4.65 5.90
Duration fund
ABSL Savings Fund 5045.21 450.9279 5.73 5.38 6.32

The table and the chart representing low duration funds , their Asset under management (AUM) , Net asset
value ( NAV) and 5 years return of all the 5 selected Asset Management Company (AMC). Debt funds can
Abe analysed by AUM and past performance hence from the above chart ABSL saving funds has given high
returns. And HDFC has highest AUM ie both can be considered as good to invest.

44
• Medium to long term duration
Fund name AUM( in cr) NAV Returns % as on 18th April 2023
1 year 3 year 5 year
ICICI prudential bond fund 2227.83 33.5699 6.20 5.61 6.71
HDFC income fund 529.91 49.1963 4.49 3.94 5.13
Nippon Strategic Debt fund 136.29 13.1229 4.60 7.60 -1.36
SBI Magnum income fund 1537.97 59.8108 6.12 5.87 7.07
ABSL income Fund 1496.22 106.8023 4.84 6.11 7.08

The table and the chart representing low duration funds , their Asset under management (AUM) , Net asset
value ( NAV) and 5 years return of all the 5 selected Asset Management Company (AMC). Debt funds can
Abe analysed by AUM and past performance hence from the above chart ABSL income fund has given
higher returns in future also the NAV indicates the funds performance hence it is considered good to invest.

45
• Money market fund
Fund name AUM( in cr) NAV Returns % as on 18th April 2023
1 year 3 year 5 year
ICICI prudential money 8948.371 322.4841 5.88 5.03 6.06
market fund
HDFC money market fund 12835.24 4864.5625 5.82 5.11 6.14
Nippon money market fund 9362.96 3526.9975 6.03 5.05 6.17
SBI savings fund 16740.22 35.5533 5.40 4.58 5.62
ABSL money market fund 11611.08 314.3813 5.96 5.19 6.28

The table and the chart representing low duration funds , their Asset under management (AUM) , Net asset
value ( NAV) and 5 years return of all the 5 selected Asset Management Company (AMC). Debt funds can
Abe analysed by AUM and past performance hence from the above chart ABSL income fund has given
higher returns in future also the NAV indicates that HDFC money market fund is selected a best depending
upon funds performance and name of fund house . We can conclude that HDFC is good choice to invest into.

46
• Liquid fund
Fund name AUM( in cr) NAV Returns % as on 18th April 2023
1 year 3 year 5 year
ICICI Prudential Liquid Fund 36077.328 331.8645 5.79 4.20 5.22
HDFC Liquid Fund 39501.387 4400.0592 5.80 4.15 5.15
Nippon Liquid Fund 21819.532 5472.9294 5.79 4.21 5.25
SBI Liquid Fund 66721.698 3508.8075 5.80 4.20 5.19
ABSL Liquid Fund 28809.984 361.1151 5.88 4.27 5.28

The table and the chart representing low duration funds , their Asset under management (AUM) , Net asset
value ( NAV) and 5 years return of all the 5 selected Asset Management Company (AMC). Debt funds can
Abe analysed by AUM and past performance hence from the above chart Nippon liquid fund has given less
or equal returns compared to ABSL though the NAV indicates the funds performance hence it is considered
good to invest.

47
• Corporate Bond Fund
Fund name AUM( in cr) NAV Returns % as on 18th April 2023
1 year 3 year 5 year
ICICI Prudential Corporate 19736.580 25.09 6.29 6.33 7.04
Bond Fund
HDFC Corporate Bond Fund 25403.958 27.3336 5.23 6.08 7.14
Nippon Prime Debt Fund 1967.648 50.396 5.78 6.03 6.63
SBI Corporate Bond Fund 17668.696 13.1436 4.78 5.35 6.71
ABSL Corporate Bond Fund 15698.047 94.859 5.57 6.48 7.33

The table and the chart representing low duration funds , their Asset under management (AUM) , Net asset
value ( NAV) and 5 years return of all the 5 selected Asset Management Company (AMC). Debt funds can
Abe analysed by AUM and past performance hence from the above chart ABSL Corporate bond fund has
given higher returns in future also the NAV & AUM indicates the funds performance hence it is considered
good to invest.

48
 Findings

• ICICI prudential has given better returns in large cap funds as compared to others.
• SBI Magnum Mid cap fund gives high returns in mid cap funds as compared to others.
• Nippon India has given better returns in small cap fund as compared to others.
• HDFC multi cap fund gives high returns in multi cap fund as compared to others.
• SBI Magnum tax saving fund gives high returns in ELSS fund as compared to. Others.
• ICICI prudential gives better returns in low duration debt fund as compared to others.
• ICICI prudential gives high returns in short duration debt fund as compared to others.
• ABSL and hdfc both gives better returns in ultra short duration debt fund as compared to others.
• ABSL gives better returns in medium to lon term debt fund as compared to others.
• HDFC gives better in money market debt funds as compared to others.
• Nippon liquid fund has given better returns in liquid debt funds as compared to others.
• ABSL Corporate bond fund has given better returns in corporate bond funds as compared to others.

49
 Suggestion and recommendations

• If investors want to invest their money with less risk they can invest in mutual fund with proper knowledge
about Various funds and schemes are available in mutual fund.
• To earn maximum returns from mutual fund, the investors must have clear financial goals and decide your
risk Tolerance capacity.
• Remember that these ratios are just tools for analysis, and it’s essential to consider other factors like
investment objectives, fund strategy, and fees before making investment decisions.

50
 Conclusion

The conclusion of the study that the Mutual Funds as an investment option have displayed growth potential
Market and performed much better than the traditional market options in the long term helps investor to Think
about that investment. It is the importance that investors do not make a rash decision simply by Looking at the
return figures generated by an individual fund, they should compare funds based on the risk And return analysis
and find out which fund is giving better returns equivalent to the risk taken. Statistical Analysis helps investors
make a correct decision looking at facts based on numbers instead of just going by Their gut feeling. Also
compared to the traditional options, mutual funds provide a more professional Approach towards investment
and some amount of diversification.

A thorough analysis clubbed with timely Investments might prove Mutual Funds to be an excellent form of
Investment. The analysis is based on not only the return but also their other instruments like Standard
Deviation, Sharpe Ratio, Beta and Alpha. The difference between the fund actual return and its expected
Return is its Alpha. The comparisons of all equity and debt fund schemes the all schemes are having their Own
perspective.

The investor who thinks About the return without risk so they can invest in debt schemes in different duration
or period of time. The Investor who think about the more gain from the market and also they have taken risk
for the highly or Better return in future. The risk and return are on the basis of their AUM and NAV value of
the particular Schemes. The Sharpe ratio are given the information about the risk adjusted return and measure
the return Of the fund for every unit of risk as measured by the Standard Deviation. The all schemes are the
open Ended schemes and also they are having the growth in nature.

51
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