CHAPTER-2

RESEARCH METHODOLOGY

Objectives:

This project has been made to study about mutual funds, so the purpose of study includes
following objectives-

1. To understand the concept and working of mutual funds.

2. To compare and analyze the performance of selected mutual fund schemes on the basis of
risk and past returns.

3. To know the investment pattern of investor in mutual funds.

The schemes names are-

 Hdfc Equity Fund- Growth

 Fidelity Equity Fund- Growth
 Reliance Vision Fund- Growth
 Franklin India Blue Chip Fund- Growth

The ratios used for comparison on the basis of risk are-

 Beta ratio
 Sharpe ratio
 Treynor ratio
 Alpha ratio

Scope:

The project is based on HDFC mutual fund. The project is teach us that we are invest in
HDFC mutual fund or not. This information is based on information which is collected
from various sources. On base on this project we understand the positive point of the
HDFC mutual fund. Various advantages and disadvantages also. After preparing this
project we actually understand the HDFC mutual fund.

Limitation:

 Some of the persons were not so responsive.

 Possibility of error in data collection because many of investors may have not given
actual answers of my questionnaire.

 Sample size is limited to 200 visitors out of these only 120 had invested in Mutual
Fund. The sample Size may not adequately represent the whole market.

 Some respondents were reluctant to divulge personal information which can affect the
validity of all responses.

 The research is confined to a certain part.

Research- “Research comprises defining and redefining problems ,formulating

hypothesis or suggested solutions, collecting, organizing and evaluating data; making
deductions and reaching conclusions; and at last carefully testing the conclusions to
determine whether they fit the formulating hypothesis”.
- clifford woody

Research methodology has many dimensions. It includes not only research methods but also
consists the logic behind the methods used in the context of the study and explains why only a
particular method of technique had been used so that search lend themselves to proper
evaluation. Thus in a way it is a written game plan for concluding research. Therefore in order
to solve our research problem, it is necessary to design a research methodology for the problem
as the same may differ from problem to problem.

RESEARCH DESIGN- Research design is the conceptual structure within which the research

is conducted. Its function is to provide for the collection of relevant evidence with minimum
expenditure of effort, time and money. But how this can be achieved depends on the research
purpose,
Research design is of mainly three types-
1. Exploratory research
2. Descriptive research
3. Experimental research

Exploratory Research- It focuses on the discovery of ideas and is generally based on primary

data. It is preliminary investigation which does not have a rigid design. This is because a
researcher engaged in exploratory study may have to focus as a result of new ideas and
relationship among the variables.

Descriptive Research- This kind of research is concerned with describing the characteristics of
a particular individual or of a group. In this kind of research primary and secondary both type of
data is used. As my project is comparative analysis of performance of mutual fund schemes on
the basis of past data about NAV’S and PAST RETURNS. I have collected data from secondary
sources. So my research study is based on “Descriptive Research Design”.

Experimental research- This is also called hypothesis-testing research. In it the researcher tests
the hypothesis of causal relationship between variables.

Data collection- The objectives of the project are such that secondary data is required to

achieve them. So secondary data was used for the project. The mode of collecting secondary
data are magazines, books, newspapers, and websites company’s brochures.
So my project contains the “Descriptive Research Design”. So data is taken from secondary
sources.

Methodology for Customer Survey

Target Population: All customers of HDFC Bank.

Survey Frame: I chose HDFC Banks to conduct my survey.

Sampling Element: Individuals.

Sample Size: 100 customers.

Sample Area: Mumbai Suburbs

Type of data used: Primary data.

Tools Used: Questionnaire

Gender: Males and Females

Age: 25 years to 70 years