Project Report

on
Performance Evaluation of Equity Based Mutual Funds in India

Submitted in Partial Fulfillment of the Requirement of

Master of Business Administration (MBA)

Project Guide Submitted by:

Dr. Vikas Dahiya Abhay Dhankard
Associate Professor 03561203922
Batch: 2022-2024

Submitted to:
BANARSIDAS CHANDIWALA INSTITUTE OF PROFESSIONAL
STUDIES, DWARKA, NEW DELHI
(Approved by AICTE & Affiliated to Guru Gobind Singh Indraprastha University)

1
 BONAFIDE CERTIFICATE

This is to certify that as per best of my belief the project entitle “Performance
Evaluation of Equity Based Mutual Funds in India” is the bona-fide research
work carried out by Abhay Dhankard, 03561203922 student of MBA, BCIPS,
Dwarka, New Delhi during March 2024 to June 2024, in partial fulfillment of the
requirements for the Degree of Master of Business Administration.
He / She has worked under my guidance.

Name: Dr. Vikas Dahiya

Research Project Guide
Date:

Counter signed by

Name:
HOD / Director
Date:

2
 DECLARATION

I hereby declare that this Final Research Project Report titled “Performance
Evaluation of Equity Based Mutual Funds in India” submitted by me to
Banarsidas Chandiwala Institute of Professional Studies, Dwarka is a bona-fide
work undertaken by me during the period from March 2024 to June 2024 and it
has not been submitted to any other University or Institution for the award of any
degree diploma / certificate or published any time before.

(Signature of the Student) Date: / / 2024

Name: Abhay Dhankard
Enroll. No.: 03561203922

3
 INDEX

S.NO. PARTICULARS PAGE NO. SIGNATURE

- EXECUTIVE SUMMARY

1. Chapter- 1 INTRODUCTION/BACK GROUND OF 6-10

THE STUDY

2. Chapter-2 LITERATURE REVIEW 11-14

3. Chapter- 3 RESEARCH OBJECTIVES 15-16

 Research Objectives
 Research Question
4. Chapter- 4 RESEASRCH METHODOLOGY 17-19
 Research Design
 Data Collection
 Tools

5. Chapter- 5 DATA ANALYSIS 20-25

 Data Result
 Interpretation

6. Chapter-6 FINDINGS, CONCLUSIONS AND 26-31

SUGGESTIONS
 Major Findings
 Conclusion
 Suggestions
 Limitations of the study

4
 EXECUTIVE SUMMARY

The project on the comparison and analysis of top 12 equity based mutual fund schemes in
India via NAV (Net Assets Value) and Total Return. Twelve companies has been categorised
in Large cap funds, Mid cap funds and Small cap funds. The report aims to investors in
making informed decisions regarding potential investments in top 12 equity based mutual
funds companies.

The analysis covers the period of 2021 and 2022 and examines various financial tools such
as SD (Standard Deviation), β (Beta), Sharpe Ratio and Jensen‟s Alpha are utilized to provide
insights into funds performance, volatility, risk and return.

Mutual funds are popular financial intermediaries and manage disposable income of the
investors so as to bring them benefits of equity investment. The mutual funds in India has
caught the attention of millions of investors with diverse interests around the basic principles
of investments viz., safety, liquidity and returns.

The findings reveals that large caps funds has performed very less than mid cap funds and small
cap funds in last two years. While Jensen‟s ratio of small cap funds indicates that these funds
has provide great return to the investors.

The tables show the NAV and total returns on the funds. Additionally, it also shows the analysis
of equity based mutual funds by the standard deviation, beta, sharpe ratio and Jensen alpha.

Every mutual funds predominantly invest in company equities and hence are risky investments.
While choosing to invest in equity mutual funds, the investors expect not only risk premium
but also better return than the market portfolio. Risk Premium refers to the returns earned by
the investors in excess of risk free return.

This project report serves as a valuable resource for seeking insights into the performance of
equity mutual funds and provides a further analysis and decision-making.

5
CHAPTER -1
Introduction

6
INTRODUCTION

Future is uncertain nobody know what will be happen in future but every one wants to be safe
from future uncertain events. Financial security is the most important factor for every human
beings life. Investment is to allocate money in the aim of some benefit in the future.

It involves the decisions like, where to invest, when to invest and how much to invest. General
publics are attracted by capital market but number of problems connected with it. It is very
difficult to understand the complexities involved in the stock market operation and it is not so
easy to judge the fluctuations in stock price. Mutual fund is a medium which helps to mobilize
money from investors to invest in different financial instruments with the investment objectives
agreed upon between the mutual fund and the investors when investors access to market,
through mutual fund, they avail of the professional fund management services offered by an
assets management company. They able to produce a desired amount of a desired effect.

The primary role of a mutual fund is to help the investors in earning return on building their
wealth with low risk. Mutual fund seek to mobilize money from all possible investors. The
money that is raised from investors ultimately benefits governments companies and other
entities, directly or indirectly to raise moneys to invest in various project or pay various
expenses.

MUTUAL FUND TREND AND DEVELOPMENT:

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at
the initiative of the Government of India and Reserve Bank of India. The history of mutual
funds in India can be broadly divided into four distinct phases.

First Phase - 1964-1987

Unit Trust of India (UTI) was established in 1963 by an Act of Parliament. It was set up by
the Reserve Bank of India and functioned under the Regulatory and administrative control of
the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial
Development Bank of India (IDBI) took over the regulatory and administrative control in place

7
of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had
Rs. 6,700 crore of assets under management.

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

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.

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

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 crores as at the end of January 2003.

8
Parties Involved In Mutual Funds

It is the governing authority of stock market. Mutual

SEBI
funds legal framework is regulated by SEBIs guidelines.
Investor is another speculator (who takes on high risks for
high rewards)but one whose primary objective are to safeguard
Investors
the principle investment, a steady income and capital
appreciation.
The mutual fund has been formed as a public trust and trustees
managethe trust. They are primarily accountable for protecting
Trustees
the interest of mutual fund investors.
SEBI approved asset management company manage the fund
by making investment in various types of securities. It manages

Asset Management the investment portfolios o the schemes and handles various

Company other routine activities incidental to the mutual fund business.

Its income comes from the
management fees it charges for schemes it manages.
They earn commission for bringing in investors into the
Distributors
schemes of mutual fund. This commission is an expense for the
schemes.
An investor holding in mutual fund schemes is typically
followed by theschemes RTA (Registrar and transfer Agent).
Registers
Some AMC‟s prefer to handle it in house.
As the name suggests, a custodian of the securities preserves
Custodian/
the custody of the securities in which the scheme invests.
Depository
Therefore, for an investment transaction of mutual fund,
custodian receives or gives delivery.

9
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):

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

10
 CHAPTER 2

Literature Review

11
 Sharad Panwar and Dr. R. Madhumathi (2006) The study used sample of public-sector
sponsored & private-sector sponsored mutual funds of varied net assets to investigate the
differences in characteristics of assets held, portfolio diversification, and variable effects of
diversification on investment performance for the period May, 2002 to May, 2005. The
study found that public-sector sponsored funds do not differ significantly from private-
sector sponsored funds in terms of mean returns%. However, there is a significant
difference between public-sector sponsored mutual funds and private-sector sponsored
mutual funds in terms of average standard deviation, average variance and average
coefficient of variation (COV). The study also found that there is a statistical difference
between sponsorship classes in terms of e SDAR (excess standard deviation adjusted
returns) as a performance measure. When residual variance (RV) is used as the measure of
mutual fund portfolio diversification characteristic, there is a statistical difference between
public-sector sponsored mutual funds and private-sector sponsored mutual funds for the
study period. The model built on testing the impact of diversification on fund performance
and found a statistical difference among sponsorship classes when residual variance is used
as a measure of portfolio diversification and excess standard deviation adjusted returns as
a performance measure. RV, however, has a direct impact on Sharpe fund performance
measure.

 Edwin J. Elton and Martin J. Gruber (2011) In it we review the modern literature on the
characteristics and performance of mutual funds. Key articles on open end stock and bond
funds, closed end funds and exchange traded funds are reviewed. Topics range from
measuring and predicting performance to explaining pricing and growth.

 Sahil Jain and Dr. Aditi Gangopadhyay (2012) The last decade has seen a tremendous
growth in the mutual fund industry. As per the latest data the assets under management in
this industry is more than Rs 6.8 thousand billion. Today the Indian market is flooded with
more than a thousand mutual fund schemes, promising better returns than others. In this
paper an attempt has been made to analyze the performance of equity based mutual funds.
A total of 45 schemes offered by 2 private sector companies and 2 public sector companies,
have been studied over the period April 1997 to April 2012 (15 years). The analysis has
been made using the risk-return relationship and Capital Asset Pricing Model (CAPM). The
12
 overall analysis finds that HDFC and ICICI have been the best performers, UTI an average
performer and LIC the worst performer which gave below- expected returns on the risk-
return relationship.

 C. Edward Chang, Walt A. Nelson, H. Doug Witte (2012) The purpose of this paper is
to compare the financial performance of green and traditional mutual funds in the USA.
Design/methodology/approach - A total of 131 green mutual funds identified by US SIF,
were compared with the averages of all traditional mutual funds in their respective
Morningstar categories. Performance measures analyzed included annualized rates of
return, expense ratios, and Sharpe ratios, among others. Most data pertained to at least the
past three years, while other data pertained to the most recent 5 to 15 years. Findings - The
results demonstrate that green mutual funds have generated lower returns and similar risks
compared to traditional mutual funds in their respective Morningstar categories. Green
mutual funds have underperformed on a risk‐ adjusted basis. Research
limitations/implications - Since there is no formal definition of a green mutual fund, the
researcher and investor must make a subjective call in assessing which funds invest
“green”. However, at least in this early stage in the history of green investing, green mutual
funds have underperformed their peers. Originality/value - Results confirm the limitations
of green investing as suggested by various researchers, among them Sharpe, Rudd and
Kurtz and DiBartolomeo. Results stand in contrast to Corson and Van Dyck and Statman,
among others, which reported no significant underperformance for socially responsible
investments.
 Ms. Shilpi Pala, Prof. Arti Chandani (2014) Mutual funds allow for portfolio
diversification and relative risk aversion through collection of funds from the households
and investment of the same in the stock and debt markets. Fixed- Income Funds in India
are a kind of mutual fund which makes investment in debt securities that have been issued
either by the companies, banks, or government. Fixed- Income Funds in India are also
known as debt funds and income funds. Using various statistical measures the present study
aims to evaluating the performance of a few selected income or debt mutual funds schemes
of India on the basis of their daily NAV. Popularity of income schemes has only increased
in the last decade. Income mutual funds they have seen tremendous growth in their number
of schemes from 91 on 31st march 2001 to 330 on 31st march 2010. 506 in 2008 was the
13
 maximum ever in terms of total schemes floating in the market. This category has seen a
decline only twice in the last decade. First fall was posted in the year 2003 and the second
fall was reported in the year 2010. One striking fact which comes to light is the huge
percentage contribution of income schemes towards the total AUM of the Indian mutual
funds industry.

 K.J. Martijn Cremers, Jon A. Fulkerson and Timothy B. Riley (2019) Just over 20
years have passed since the publication of Carhart‟s landmark 1997 study on mutual funds.
Its conclusion—that the data did “not support the existence of skilled or informed mutual
fund portfolio managers”—was the capstone of an academic literature beginning with
Jensen (1968) that formed the „conventional wisdom‟ that active management does not
create value for investors. In this paper, we review the literature on active mutual fund
management since the publication of Carhart (1997) to assess the extent to which current
research still supports the conventional wisdom. Our review of the most recent literature
suggests that the conventional wisdom is too negative on the value of active management.

 Shivam Tripathi and Dr. Gurudutta P. Japee (2020) In India capital market provide
various investment avenues to the investors, to assist them to take a position in various
industries and to make sure the profitable return. Among various financial products, open-
end fund ensures the minimum risks and maximum return to the investors, Growth, and
developments of varied mutual funds products has proved to be one among the foremost
catalytic instruments in generating momentous investment growth within the capital
market. During this context, close monitoring and evaluation of mutual funds became
essential. Therefore, choosing profitable mutual funds for investment may be a vital issue.
This study deals with the equity mutual funds that are offered for investment by the varied
fund houses in India, this study mainly focused on the performance of selected equity(large-
cap, mid-cap, small-cap) open-end fund schemes in terms of a risk-return relationship. The
most objective of this research work is to analyse the financial performance of selected
open-end fund schemes through statistical parameters like (Jenson‟s alpha, beta, standard
deviation, Sharpe ratio). The researcher concluded that 10 funds out of 15 performed well
in a highly volatile market. The researcher found that an investor must consider risk ratios
of the fund before investing. The findings of this research study are going to be help full to
investors for his future investment decisions.
14
 CHAPTER 3

The Objective of the study

15
 The Objective of the study

The primary objective of the research study titled “Performance Evaluation of Equity Based
Mutual Funds in India” is to facilitate investment decision-making by providing investors
insights.
The study aims to achieve the following objectives:

1. To study the performance of top 12 equity mutual fund schemes in various categories
Large cap, Mid cap and Small cap.

2. To study the comparing of NAV of different Equity based Mutual Funds

3. To find out the performance of Equity based Mutual Funds in different category.

16
 CHAPTER 4
Research Methodology

17
Research methodology is a collective term for the structured process of conducting research.
There are many different methodologies used in various types of research and the term is
usually considered to include research design, data gathering and data analysis.

DATA COLLECTION
To gather the necessary data for the analysis, a combination of primary and secondary data
sources was utilized. Primary data was obtained through company factsheets. Secondary data
sources is collected from industry reports, scholarly articles, and relevant publications. The use
of both primary and secondary data sources enhances the comprehensiveness and accuracy of
the analysis.

SAMPLING METHODS
Descriptive method is used in this research study.

STATISTICAL TOOLS USED FOR ANALYSIS

 Jensen’s Alpha: Alpha essentially is the contrast between the profits a financial specialist
anticipates from a fund, A positive alpha methods the fund has beaten its benchmark
index. Though a negative alpha shows an underperformance of the fund. The more
positive an alpha the more advantageous for an investor.
 Beta: Beta is a proportion of the unpredictability of a specific fund in comparison with
the market, all in all, that is, the degree to which the fund's return is affected by market
factors. Beta is determined to utilize a factual tool called regression analysis.' By
definition, the market benchmark index of Sensex and Nifty has a beta of 1.0.
Conservative speculators should concentrate on mutual funds with low beta. Aggressive
financial specialists can pick to put resources into mutual funds that have a higher beta
incentive for higher returns.
 Standard deviation: The total risk (showcase, security-specific and portfolio) of a
mutual fund is estimated by Standard Deviation' (SD). In mutual funds, the standard
deviation discloses to us how much the return on a fund is going astray from the normal
profits based on its historical execution. At the end of the day can be said it assesses the
volatility of the fund. The standard deviation of a fund estimates this risk by estimating
how much the funds fluctuate in connection to its normal return of a fund over a while.
As such, it is a proportion of the consistency of a mutual fund's return. A higher SD
18
 number shows that the net asset value (NAV) of the mutual fund is progressively unstable
and, it is less secure than a fund with a lower SD.
 Sharpe ratio: Sharpe Ratio (SR) is another significant measure that assesses the return
that a fund was created for the risk taken. The risk here is estimated by SD. It is utilized
for funds that have a low relationship with the benchmark index. This ratio encourages an
investor to know whether it is a sure thing to park money into these funds by taking the
quantum of risk. The higher the Sharpe ratio (SR), the better a fund's return to the measure
of risk taken. As it were, a mutual fund with a higher SR is better since it suggests that it
has created higher returns for each unit of risk that was taken. Unexpectedly, a negative
Sharpe ratio demonstrates that a risk-free asset would perform superior to anything the
reserve being investigated.

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 CHAPTER 5

Data Analysis and Interpretation

20
 Table 1- NAV & Return

Large Cap Fund

No. Fund Name NAV for Return for NAV for Return for
2021(₹) 2021(%) 2022(₹) 2022(%)
1 Nippon India Large 49.55 29.81 55.16 9.73
Cap Fund

2 SBI Bluechip Fund 60.98 25.55 63.64 3.06

3 Edelweiss Large Cap 54.5 23.05 56.34 1.99

Fund

4 Canara Robeco 41.61 24.21 41.95 -0.64

Bluechip Equity Fund

At the end of the year 2021 NAV & TOTAL RETURN for selected schemes (Nippon India
Large Cap Fund 49.55 and 29.81%, SBI Bluechip Fund 60.98 & 25.55%, Edelweiss Large Cap
Fund 54.5 & 23.05%, Canara Robeco Bluechip Equity Fund 41.61 & 24.21%)

At the end of the year 2022 NAV & TOTAL RETURN for selected schemes (Nippon India
Large Cap Fund 55.16 and 9.73%, SBI Bluechip Fund 63.64 & 3.06 %, Edelweiss Large Cap
Fund 56.34 & 1.99%, Canara Robeco Bluechip Equity Fund 41.95 & (-0.64%))

Mid Cap Fund

No. Fund Name NAV for Return for NAV for Return for
2021(₹) 2021(%) 2022(₹) 2022(%)
1 Quant Mid Cap Fund 117.89 32.73 138.09 74.11

2 Motilal Oswal Midcap 45.67 54.50 50.56 71.04

Fund

21
 3 PGIM India Midcap 44.45 61.99 43.71 -2.37
Opportunities

4 SBI Magnum Midcap 141.04 50.54 145.33 1.55

Fund

At the end of the year 2021 NAV & TOTAL RETURN for selected schemes (Quant Mid Cap
Fund 117.89 & 32.73%, Motilal Oswal Midcap Fund 45.67 & 54.50%, PGIM India Midcap
Fund 44.45 & 61.99%, SBI Magnum Midcap Fund 141.04 & 50.54%)

At the end of the year 2022 NAV & TOTAL RETURN for selected schemes (Quant Mid Cap
Fund 138.09 & 74.11%, Motilal Oswal Midcap Fund 50.56 & 71.04%, PGIM India Midcap
Fund 43.71 & (-2.37%), SBI Magnum Midcap Fund 145.33 & 1.55%)

Small Mid Cap

No. Fund Name NAV for Return for NAV for Return for
2021(₹) 2021(%) 2022(₹) 2022(%)
1 Quant Small Cap Fund 132.38 86.27 144.95 7.52
2 Nippon India Small 87.3 72.63 93.01 4.92
Cap Fund
3 ICICI Prudential 51.15 59.45 54.09 4.93
Smallcap Fund
4 Kotak Small Cap Fund 167.52 69.08 162.37 -4.01

At the end of the year 2021 NAV & TOTAL RETURN for selected schemes (Quant Small Cap
Fund 132.38 & 86.27%, Nippon India Small Cap Fund 87.3 & 72.63%, ICICI Prudential
Smallcap Fund 51.15 & 59.45%, Kotak Small Cap Fund 167.52 & 69.08%)

At the end of the year 2022 NAV & TOTAL RETURN for selected schemes (Quant Small Cap
Fund 144.95 & 7.52%, Nippon India Small Cap Fund 93.01 & 4.92%, ICICI Prudential
Smallcap Fund 54.09 & 4.93%, Kotak Small Cap Fund 162.37 & (-4.01%))

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 Table 2 - RISK RATIOS

Large Cap Fund

No. Fund Name STANDARD BETA SHARPE JENSEN’S

DEVIATION RATIO APLHA
1 Nippon India Large Cap 16.29 1.03 1.58 4.13
Fund

2 SBI Bluechip Fund 14.72 0.97 1.36 0.37

3 Edelweiss Large Cap Fund 13.94 0.93 1.49 1.47

4 Canara Robeco Bluechip 13.34 0.89 1.41 0.38

Equity Fund

Nippon India Large Cap Fund, it has a Standard deviation of fund is 16.29, Beta value of fund
is 1.03, Sharpe ratio is 1.58 and Jenson‟s alpha is 4.13.
SBI Bluechip Fund, it has a Standard deviation of fund is 14.72, Beta value of fund is 0.97,
Sharpe ratio is 1.36 and Jenson‟s alpha is 0.37.
Edelweiss Fund, it has a Standard deviation of fund is 13.94, Beta value of fund is 0.93, Sharpe
ratio is 1.49 and Jenson‟s alpha is 1.47.
Canara Robeco Bluechip Equity Fund, it has a Standard deviation of fund is 13.34, Beta value
of fund is 0.89, Sharpe ratio is 1.41 and Jenson‟s alpha is 0.38.

Mid Cap Fund

No. Fund Name STANDARD BETA SHARPE JENSEN’S

DEVIATION RATIO APLHA

1 Quant Mid Cap Fund 16.99 0.8 1.88 9.28

2 Motilal Oswal Midcap Fund 15.1 0.84 2.19 9.34

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 3 PGM India Midcap 16.9 0.94 1.94 6.02
Opportunities

4 SBI Magnum Midcap Fund 15.78 0.9 2.01 6.23

Quant Mid Cap Fund, it has a Standard deviation of fund is 16.99, Beta value of fund is 0.8,
Sharpe ratio is 1.88 and Jenson‟s alpha is 9.28.
Motilal Oswal Midcap Fund, it has a Standard deviation of fund is 15.1, Beta value is 0.84,
Sharpe ratio is 2.19 and Jenson‟s alpha is 9.34.
PGM India Midcap Opportunities, it has a Standard deviation of fund is 16.9, Beta value of
fund is 0.94, Sharpe ratio is 1.94 and Jenson‟s ratio is 6.02.
SBI Magnum Midcap Fund, it has a Standard deviation of fund is 15.78, Beta value of fund is
0.9, Sharpe ratio is 2.01 and Jenson‟s ratio is 6.23.

Small Cap Fund

No. Fund Name STANDARD BETA SHARPE JENSON’S

DEVIATION RATIO APLHA

1 Quant Small Cap Fund 23.68 0.96 2.12 17.63

2 Nippon India Small Cap 17.95 0.86 2.19 10.12

Fund

3 ICICI Prudential Smallcap 17.98 0.84 2.09 9.33

Fund

4 Kotak Small Cap Fund 17.16 0.79 2.12 9.45

Quant Small Cap Fund, it has a Standard deviation of fund is 23.68, Beta of fund is 0.96, Sharpe
ratio is 2.12 and Jenson‟s alpha is 17.63.
Nippon India Small Cap Fund, it has a Standard deviation of Fund is 17.95, Beta of fund is
0.86, Sharpe ratio is 2.19 and Jenson‟s alpha is 10.12.
ICICI Prudential Smallcap Fund, it has a Standard deviation of fund is 17.98, Beta of fund is
0.84, Sharpe ratio is 2.09 and Jenson‟s alpha is 9.33.
24
Kotak Small Cap Fund, it has a Standard deviation of fund is 17.16, Beta of fund is 0.79, Sharpe
ratio is 2.12 and Jenson‟s alpha is 9.45.

25
 CHAPTER 6

Findings, Suggestions & Conclusions

26
 Findings

 In Large cap funds, Nippon India Large Cap Fund (Growth) has a standard deviation
of fund is 16.29 and beta value of the fund is 1.03 which means the fund is very high
volatile and where it has Sharpe‟s Ratio of the fund is 1.58 and Jenson‟s Alpha of fund
is 4.13 which says that the fund is a better risk-adjusted return to benchmark indices
and it has performed well by providing a better return to the investors.
 In Canara Robeco Bluechip Equity Fund it has a standard deviation of fund is 13.34
and beta value of the fund is 0.89 which means the fund is very low volatile and where
it has Sharpe‟s Ratio of the fund is 1.41 and Jenson‟s Alpha of fund is 0.38 which says
that the fund is a better risk-adjusted return to benchmark indices and it has not
performed well by providing a low return to the investors if we compare with other
Large cap fund.
 In Mid cap funds, Quant Mid Cap Fund has a standard deviation of fund is 16.99 and
beta value of the fund is 0.8 which means the fund is very high volatile and where it
has Sharpe Ratio of the fund is 1.88 and Jenson‟s Alpha of fund is 9.28 which says that
the fund is a risk-adjusted return to benchmark indices which is not good other Mid cap
fund but it has performed well by providing a good return to the investors.
 SBI Magnum Midcap Fund has a standard deviation of fund is 15.78 and beta value of
the fund is 0.9 which means the fund is low volatile and where it has Sharpe ratio of
the fund is 2.01 and Jenson‟s Alpha of fund is 6.23 which says that the fund is a better
risk-adjusted return to benchmark indices and it has performed well by providing better
return to the investors.
 In Small cap funds, Quant Small Cap fund has a standard deviation of fund is 23.68 and
beta value of the fund is 0.96 which means the fund is very high volatile and it has
Sharpe ratio of the fund is 2.12 and Jenson‟s Alpha of fund is 17.63 which says that the
fund is a better risk-adjusted return to benchmark indices and it has performed better
by providing a better return to the investors.
 Kotak Small Cap Fund has a standard deviation of fund is 17.16 and beta value of the
fund is 0.79 which is low volatile other than the small cap funds and it has Sharpe ratio
is 2.12 and Jenson‟s Alpha of fund is 9.45 which say that the fund is a better risk-
adjusted return to benchmark indices and it has not performed good other than the small
cap funds and provided low return.

27
 Suggestions

 The primary concern of investors unsure about buying equity funds during market highs
is that since the markets have peaked, the prices are likely to fall. Hence, they try to stay
away. While intraday traders try to buy low and sell high, this can be a dangerous
approach for investors.
 Investors must look at the long-term performance of the schemes.
 They must avoid emotions based decisions.
 Choose schemes based on your investor profile.
 Investors should get as much knowledge as possible about the taxes that apply to the
mutual funds of their choosing and the exemptions available to them.
 Investors do not need to be regularly monitored after being invested because they maintain
producing returns over time. On the other hand, it makes sense to keep an eye on the
performance once a month or so to determine whether the units kept are likely to be sold.
Regular monitoring might assist you in selling or redeeming at a high value.

28
 Conclusion

For the foregoing performance analysis of the selected twelve equity funds, it‟s clear that large
cap funds has performed very less than the mid cap funds and small caps funds. In the ultimate
analysis, it may be concluded that all the funds have performed well in the high volatile market
movement expect SBI Bluechip Fund, Edelweiss Large Cap Fund and Canara Robeco
Bluechip Equity Fund. Therefore, investors need to consider statistical parameter like Jenson‟s
alpha, beta, standard deviation, Sharpe ratios while investing in mutual funds apart from
considering NAV and Total Return to ensure consistent performance of mutual funds.

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 Limitations of the study

 Only 12 funds are selected for the study due to time constraints.
 In addition, to equity open ended growth schemes may also be considered.
 Only a simple evaluation was done against the market performance.
 The lack of transparency regarding the process of managing fund portfolios creates a
further limitation on the assessment of the value of active management.

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 BIBLIOGRAPHY

Research Paper Refered:-

1. Sharad Panwar and Dr. R. Madhumathi 2006- Characteristics and Performance
Evaluation of Selected Mutual Funds in India
2. Edwin J. Elton and Martin J. Gruber 2011- Mutual Funds
3. Sahil Jain and Dr. Aditi Gangopadhyay (2012)- Analysis of Equity Based Mutual Funds
in India
4. C. Edward Chang, Walt A. Nelson, H. Doug Witte (2012)- Management Research
Review Emerald Article: Do green mutual funds perform well
5. Ms. Shilpi Pala , Prof. Arti Chandani (2014)- A Critical Analysis Of Selected Mutual
Funds In India
6. K.J. Martijn Cremers, Jon A. Fulkerson and Timothy B. Riley (2019)- A Review of the
Past 20 Years of Academic Literature on Actively Managed Mutual Funds
7. Shivam Tripathi and Dr. Gurudutta P. Japee (2020)- Performance Evaluation of
Selected Equity Mutual Funds in India

Websites:-
 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=876402
 https://pages.stern.nyu.edu/eelton/Mutual%20Funds4-13-11.pdf
 https://www.semanticscholar.org/paper/Analysis-of-Equity-Based-Mutual-Funds-in-
India-Jain-Gangopadhyay/75ec541dd284a73bf674954b5520d82cdc6e217e
 https://www.ingentaconnect.com/content/mcb/mrr/2012/00000035/00000008/art0000
3
 https://core.ac.uk/download/pdf/82473845.pdf
 https://www.cfainstitute.org/en/research/financial-analysts-journal/2019/0015198X-
2019-1628555
 https://archive.org/details/65-71mfshivam_202012

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