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TITLE

"COMPARATIVE STUDY OF GROWTH ORIENTED BALANCED


FUNDS OF VARIOUS COMPANIES WITH REFERENCE TO ING
VYSYA MUTUAL FUND"

INTRODUCTION

The capital market in India is now playing a significant role in the


mobilization of savings and allocation of capital. With over 20 million
shareholders, India has the third largest investor base in the world after USA
and Japan. The year 2006 was characterized by a tremendous bullish
secondary market activity. The funds under management with domestic
mutual funds in India have reached a figure of more than Rs. 100,000
Crores, which is approximately 10% of the deposit base of the banking
system. Out of this, around half of the funds would represent investment in
equity based funds. These figures would lead us to believe that domestic
investors are increasingly considering investing in mutual funds.

One of the best ways of growing your money is to invest in Mutual funds.
They are less volatile than the stock and security market, thus giving more
safety to the investors.

This project is an attempt to understand the mutual fund industry through a


study on the Performance Evaluation of Growth Oriented Balanced Funds
for ‘International Nederland Group’ (ING Vysya Mutual Fund).
A Mutual Fund is a trust that pools the savings of a number of investors who
share a common financial goal. The money thus collected (Known as
CORPUS) is invested by the fund manager in different types of securities
such as stocks, bonds, certificates of deposit, and various other securities
depending upon the objective of the scheme. The funds are managed by a
professional Fund Manager who decide what securities to buy, when to buy
and sell and in what quantity.

DESIGN OF THE STUDY

STATEMENT OF PROBLEM

The mutual fund industry has been reeling under the weight of the high
volatility that the market has been witnessing. The NAV's of various growth-
oriented funds have out performed the market benchmarks. This should
ensure the fact that mutual funds are the best and safest form of investments
available to the investor. The study and understanding of mutual fund
industry with special reference to the growth oriented balanced funds will
prove to be of tremendous help.

SCOPE OF STUDY
The researcher will be able to assess the performance of the growth oriented
balanced schemes. Details regarding the performance of the balanced fund
have been obtained from the records of the company, fact sheets and the
quarterly reports that are published and issued to the investors/distributors
regularly. A study covering the performance of the scheme since the
inception as against benchmark will definitely give accurate results with
respect to the comparative study of performance evaluation of the growth
oriented balanced schemes.

OBJECTIVES OF STUDY

The primary objective of the study is:


To understand growth oriented balanced funds enabled by a
comparative study between the following funds:

1. ING-VYSYA
2. BIRLA BALANCED FUND
3. PRU ICICI BALANCED FUND
4. FT INDIA BALANCED FUND
5. HDFC BALANCED FUND

• To study the past performance of these funds other objectives that


supplement the study are:
• To know the factors considered for selecting a particular mutual fund.
• To offer suggestions / recommendations on the lines of inferences
drawn.
METHODOLOGY
A. Data collection
The requisite data for the study has been collected from secondary sources
of information. The data has been obtained from the records of the company
in form of fact sheets and the prospectus issued by the companies.

B. Plan of Analysis
The project will be dealing with five open-ended balanced funds, namely
Ing-vysya, Birla Balanced Fund, Pru ICICI Balanced Fund, FT India PE
Ratio Fund, HDFC Balanced Fund, to carry on a Comparative Analysis
based on the secondary data made available by Ing-vysaya. Benchmarks are
by far the most critical aspect of the study. The benchmarks that have been
considered are ING-VSYAYA BALANCED FUND.

LIMITATIONS OF THE STUDY

The period of study is too short for performance evaluation of a fund. Hence,
the result arrived at, may not be completely accurate.

• The data collected for the comparative scheme analysis was secondary
and hence the accuracy may have been compromised.
• HSBC Composite fund index has been selected as the benchmark
portfolio, which may not be a surrogate benchmark for performance
evaluation.
• The type of the schemes was restricted to only open-ended growth
schemes. The inclusion of other schemes would have given more
accurate picture.
• This being an academic study suffers from cost and time constraints.