EXECUTIVE SUMMARY

Mutual fund is a scheme in which numerous people deposit cash for a common
monetary goal. The collected money are deposited in capital market , debt and various
other instruments, which they earn , is divided based on number of units which they
hold. Every individual always wishes to get a good return on his / her investments
because depositor makes investments from the part of salary. Among various option on
investment there are different types of funds to be invested i.e. the equity market is
considered to be one of most avenues even though it involves high risk. Since risk is
high in investments the depositor needs to make analysis of funds which helps them to
identify the risk and return factor in funds in which every person wishes to deposit their
money into it. In this outlook, a study has been undertaken to analyse the performance
of the selected funds- Mirae Asset Large Cap Fund- Regular Plan, HSBC Multi Cap
Fund-Regular Plan, DSP Mid Cap Fund-Regular Plan, Kotak Small Cap Fund-Regular
Plan, Axis Blue Chip Large Cap Fund-Regular Plan, SBI Magnum Multi Cap Fund-
Regular Plan, L&T Mid Cap Fund -Regular Plan, HDFC Small Cap Fund-Regular Plan.
This project is undertaken at Grow Wealth, Bangalore as a part of MBA program with
respect to Study on Performance of Indian Equity funds. Main objective of this project
is to study risk and return factor, to compare performance of selected schemes with
standard Nifty 50 Index. The research is based on NAV values and market price on
equity. The closing price of NAV for each day for 10 year period from period of 1 Jan
2010 to 31 Dec 2019 are gathered from AMFI website. To analyse results statistical
tools like Sharpe index, Jensen index, Treynor index, Beta, Standard deviation is used
to see whether funds under perform or over perform the market index. From analysis
part I found out that overall Mirae Asset Fund is performing good when compared to
other schemes. Secondly, Kotak Small Cap Fund is better as though it generates good
returns. Thirdly L&T Mid Cap fund is also fair compared to other schemes. This study
helps to get a fair idea of different funds with respect of time where he should think to
invest money so that it would help depositors before investing in equity schemes to take
good decisions for their saving where they want to invest money.
 CHAPTER 1

INTRODUCTION

1.1 INTRODUCTION ABOUT PROJECT

I have done a 6 week internship and 4th Sem project at Grow Wealth, Rajajinagar
Bangalore. which is a proprietorship firm. It is a wealth consultancy firm which helps
their clients in giving right financial solutions to all stages of life from youth to
retirement people. This project focus on the study of performance analysis in Indian
selected equity funds.

1.2 INDUSTRY PROFILE

Introduction to Mutual Funds

Mutual fund is a kind of depositing of cash or a trust regularly run by a asset

management company. Where money is gathered from various depositors who have a
shared investment goal. And these money is deposited in the company through various
options like shares and bonds etc. The combination of holdings of these mutual funds
is called as portfolio. The income that is obtained from this investment is shared in
proportion by the holders for the particular number of units held by depositors.

Based on performance of securities mutual fund value can be obtained. So, when you
are able to purchase the units of mutual fund more precisely you are buying the
performance of the portfolio. Unlike stock, mutual funds does not give any voting
rights, so the price of the fund is represented as Net asset value (NAV). NAV are
obtained from subtracting total assets from total liabilities. These funds are listed on
Securities Exchange Board of India (SEBI) where provisions is generated to safeguard
the interest of the depositors.

So MF will able to determine as best appropriate savings option for all peoples as it
offers to be invested in basket of securities ( stocks, bonds) that can be managed at a
low cost which is also diversified in various sectors.
History of Mutual Fund (MF)

In India MF Business has been established during 1963 which was set up by Unit trust
of India (UTI) as a lead of GOI and RBI. MF history is vastly divided into 4 phases.

PHASE 1 (1964 - 1987)

During this phase there was a start of Unit trust of India. Till 1987 this trust was only
MF performer in the country. It began its processes in 1964 with an opinion of
encouraging people to do investments , savings, gains and profits in the company from
managements. During this period UTI had a slow growth in 1988. At year end it had
an Asset under management (AUM) of 6700 crores.

PHASE 2 ( 1987 – 1993)

During this period there was an entrance of public sector funds. This funds was
established by public sector banks and LIC. The 1st ever fund was SBI MF which was
introduced in 1987 June and also various other banks such as Bank of Baroda in 1992,
PNB in August 1989. At the end of the year it had an AUM of 47,004 crores.

PHASE 3 ( 1993 – 2003)

In this period there was an entrance of public sector funds gave way for area in Indian
MF providing the depositors a broad options for fund categories. It was the period were
the 1st MF rules had been come to picture under which all MF excluding UTI which
was to be governed and registered . Kothari pioneer (AMC) which is now with Franklin
Templeton which was a 1st private sector MF which was introduced in 1993 in July. In
2003 there had been only 33 MF’s . At the end of the year it had an AUM of 44,541
crores.

PHASE 4 ( Since February 2003)

During this period UTI had been categorized in to two different categories in Feb 2003.
One of the entity is UTI with an AUM of 29,835 crores. Second UTI fund is generated
by Punjab bank, LIC and SBI with an AUM of 76000 crores. This phase was entered
into growth and consolidation phase.
The below table represents how the AUM has grew in the following years.

Table No 1.2 : AUM for following years

YEARS AMOUNT (AUM)

1964 – 1987 6700 crores
1987 – 1993 47,004 crores
1993-2003 44,541 crores
Since Feb 2003 87,190 crores
March 2007 3,26,388 crores
March 2010 6,13, 979 crores
March 2014 8,25, 240 crores
March 2015 10,82,757 crores
July 2016 15,00,000 crores

Growth in Mutual Funds

The Concept of MF was introduced by Robert Fleming at Europe particularly in Great

Britain in 19th Century. The 1st deposit trust named “ Foreign & colonial investment”
was established during the period 1868, which assured finances of investors to manage
the funds by scattering financial investments over numerous stocks, Open – ended funds
were the first ever MF which was begun in the year 1924.

The Outbreak of the second World war and great depression loosened the speed of
growth of MF industry this impacted share market place in the year 1929. In the year
1950’s and 60’s New innovations of products and services was the main motive for
popularity of the funds. The 1st ever International stock MF was established in 1940 at
United states. During 1986 new additions like International Bonds were added.

This made rival essentially in bank and mutual fund industry mainly due to factor in
size. The MF industry have seen the AUM growth in 2019 is significantly higher than
7.5% growth in 2018. In 2019 mutual funds have added 3,15 lakh crore to the asset base
for encouraging investor confidence. As per Association of MF’s in India (AMFI)
AUM had been rose by 13% i.e. 23.62 lakh crore at the end of Dec 2018. Overall at
present we have 44 (AMC) in India and 35 are private area firms, which together have
2500 MF schemes. All these AMC are a part of Association of Mutual Funds (AMFI).
List of Top Asset Management Companies in India

1. ICICI Prudential limited

This company is mainly based on life insurance. It was founded in the year 12 Dec
2000. Its headquarters is located in Mumbai. The main product of this company is
insurance. The total assets as per 31st march 2019 is 1604.10 billion. This company was
begun by ICICI bank limited and prudential corporation. It began its processes in the
year2001 and has been among top players in insurance sector. This was the 1st insurance
company to be listed in NSE and BSE.

2. HDFC Company limited

It is an Indian financial service company .HDFC was founded in the year 1977 and
headquarters is located in Mumbai , Maharashtra. In the year 2000 HDFC Asset
management company had been launched the MF schemes .Insurance regulatory
decided to make registration to HDFC as a private sector insurance company.

3. Reliance Nippon limited

This company operates as an insurance company and one of largest AMC. It was
founded in 2001. The company mainly provides health insurance, saving , investment ,
retirement, child, and health plans. It mainly serves for the individuals and businesses
in India. The company established its processes in 1995 as an asset manager. During
the period they launched 2 schemes reliance growth fund and vision fund.

4. UTI company limited

UTI fund is on of the largest fund and it was the only fund performer in year1963. Its
headquarters is located in Mumbai, Maharashtra. The products and services of unit trust
of India are mutual funds, private equity, portfolio management service . this company
was sponsored by 4 largest public sectors.

5. Kotak Mahindra limited

It is a private sector bank its headquarters is located in Mumbai and founded in the year
Feb 2003. The company is mainly in to providing products and various services to
people and retail clients. The service they provide is personal finance, investment
banking, general and life insurance.
1.3 COMPANY PROFILE

Fig No 1.3 : Company Profile

Grow Wealth is a wealth Consultancy firm which was established in the year 2007, by
Mr. Deepesh Mehta who is a BBM management graduate and a certified financial
planner with over 12 years’ experience in wealth management. Grow Wealth
specializes in offering customised financial solutions to investors both domestic as well
as those based overseas. It is a registered distributor under AMFI and also provides
various services under one area which helps them to maximize the value of their
investments. In initial stages the clients were around 15-25 but later on it increased to
280. The firm gives the right financial solutions to client at all stages of life from youth
to retirement.
The team of Grow Wealth are as follows:

1. Geeta Jain ( Client support executive)

She handles the operations and also gives instructions to the clients regarding the
investments. Geeta knows every client and family background and aware about what
work needs to be done and when.

2. Shilpashree (Assistant financial planner)

Shilpa helps the clients in placing and aligning the goal for an investor. Which makes
them much easier to focus on what they require. She plays an important role in planning.

3. Susheela Morab (Assistant manager)

/She is very enthusiastic, energetic, and youngest member of the team. Based on the
experience from hospitality field which helps the clients to easily connected.

4. Sujata Iyer ( Research head)

She gives best investment advice to the clients and has an eye on the investments and
further plans along with Deepesh

1.4 PROMOTERS OF GROW WEALTH

Grow Wealth is a proprietorship Firm. The founder of Grow Wealth is Mr. Deepesh
Mehta, who is a BBM Management Graduate from Seshadripuram College, Bangalore.
He is a certified financial planner. He has conducted many investor awareness programs
and also educates the students at various educational institutions on different topics
regarding finance and investment matter and also spreads financial literacy across the
Bangalore and different cities. He has recently authored a book which was published
by CNBC named ‘Power your child’s financial future’ where every parents and
individual must be aware about the 7 strategies which is mentioned in this book.
1.5 VISION MISSION & QUALITY POLICY

Vision

The vision of Grow Wealth is to be a partner of their clients throughout their journey
in advising the right financial solutions to the investors to get a reasonable return.

Mission

Mission of Grow Wealth is making the investors happy by utilizing their money to the
best use, that helps them to achieve their dreams and long term future goals of an
investor.

Quality policy

• Delivering the right financial solutions to every family.

• Encouraging the clients to reach their goals.
• Delivering the excellent customer services and avoiding biased advice.
• Meeting the clients requirements.
• Generating maximum benefits to the stakeholders.

1.6 PRODUCTS AND SERVICES PROFILE

Fig No 1.6 : Financial advisor

Fig No 1.6 : Mutual Funds Fig No 1.6 : Health Insurance

Products and services of Grow Wealth Company are as follows:

• Grow Wealth company provides customer financial solutions to the clients across
Bangalore and abroad.
• They also conduct awareness programs in the educational institutions.
• Grow Wealth provides right financial advices to their clients for achieving their
long term goals for all stages of life from youth to retirement people.
• Mr. Deepesh also engages the students on the certain topics regarding personal
finance and investments.
• They provide customer service and avoid biased advices and also empowering the
clients to reach their target.
• They deliver right mutual funds advices to every family.

1.7 AREAS OF OPERATIONS

Grow Wealth is proprietorship firm they operate in Bangalore, and provides many
services under one single umbrella they are mainly into providing financial solutions
both domestic as well as overseas.
1.8 INFRASTRUCTURE FACILITIES

Infrastructure is one of essentials among the different elements which helps the working
way in the organization. Consequently a large portion invest their valuable time and
money in enhancing the infrastructure resources. Better infrastructure facilities will
help organization in motivating employees in order to complete goals and objectives.

Various infrastructure facilities involve in the following

• Free parking facility

For all the employees as well as visitors are provided with sufficient parking
facilities, separately for two wheeler and four wheeler.
• First Aid
First aid facility is must for all the industry. If any accident occurred while
working immediate first aid facility will be given.
• Refreshment
Snacks, tea and coffee in between the working hours will be given.
• water and electricity
The company has provided 24 hours water supply as well as electricity facility.
• Canteen facility
Breakfast, lunch and other facilities will be given to all the employees.
• Other facilities includes
Centralized AC facilities, Sufficient seating facilities for all the visitors, they
also have research cabin. Every employees have their own computers.

1.9 COMPETITOR’S

The competitors of Grow Wealth are

• Sharekhan limited
It is the biggest retail brokerage firm in India and online trading firm. Founded
in the year Feb 2000. This company provides wide range of products and
services including mutual fund supply, securities brokerage etc. there are 4800+
employees and 153 branches.
 • Karvy stock broking limited
Karvy is the private firm, it was founded in 1983. Its headquarters located in
Hyderabad and Telangana. It is supervised by C Parthasarathy as a chairman.
There are 30,000+ employees , 900 offices. They are into financial services like
finance, insurance, broking, investment banking etc. It recently started its
business through e-commerce to enable medium firms to go online to sell their
products.
• Angel broking limited
It is a stock broking firm and founded in year 1987. The services of angel limited
is equity trading, portfolio management service, mutual funds, life insurance,
health insurance, investment advisory etc.
• Indiabulls
It is a conglomerate headquartered in Gurgaon. They are mainly into the
business of consumer finance and wealth management. It was founded in Jn
2000. It is the second largest housing finance company.
• Motilal Oswal Securities
Motilal Oswal Securities which concentrated their operations in many financial
services like retail broking, wealth management, investment banking. The
company was founded in 1987 . In 1988 it got ownership in Bombay stock
exchange. In 2000 it also introduced depository participant services.

1.10 SWOT ANALYSIS

Strength

• Grow Wealth has the clients across the world in India as well as overseas
• It has multi-channel Services that helps the Customer.
• It has a good Customer Relationship.
• It is an AMFI registered distributor for Mutual funds.

Weakness

• Only one office situated in Bangalore.

• The investors have less awareness because of low publicity.
• Less scope of performance appraisal of workers.
Opportunities

• Adding of New clients.

• Satisfied clients give word of mouth reference and publicity.
• Customer satisfaction
• International expansion
• Growth in Indian Economy
• New Services

Threats

• Increase in number of competitors.

• Change in government policies.

1.11 FUTURE GROWTH AND PROSPECTUS

• Government has changed exemptions rules so there will be less options for
investment.
• Mutual funds becomes a good option for customers.
• Addition of New Clients.
• Improves in better tax efficiency.
• Increase Number of employees in the organization.
 CHAPTER 2

CONCEPTUAL BACKGROUND AND LITERATURE

REVIEW

2.1 THEORETICAL BACKGROUND OF THE STUDY

Introduction to MF’s

Mutual fund is a collection of cash where various depositors invest money for certain
goals. The money that is collected thus is invested in stocks, traded instruments and
different securities etc. In turn they get units as each value which is also referred as
Net Asset Value. NAV can be obtained from deducting total assets and total liabilities.
The money deposited in these capital market place instruments depends on objectives
and profit or loss being shared in proportion by the investors. Investors have 2 choices
to invest. One is they can invest directly in individual securities. The other way is to
invest indirectly in the form of financial intermediary. These instruments or Mutual
fund invest in various asset classes such as Equity, Corporate debt, Sovereign debt,
gold etc. This gives an investor the advantage of diversifying his/her investments across
asset classes. Diversification helps the Investors to reduce the risk as all stocks may not
be fluctuating in the same way at the similar time. These funds can also be invested in
various securities.

The funds gain popularity after second world war, at present there are many firms which
provides mutual fund schemes to the investors with different objectives. Today funds
are collecting more money when compared to bank. To start up an investment in funds
certain documents is to be prepared. The documents tell about the objective of
investment, cost which is involved to make the process, risk involved in it, and rules
and regulations to be followed for entry and exit of the fund.

Every MF is considered to spread the risk around in market gains. Some of the funds
hold high volume of risk and but also high rewards but some hold moderate risk.
Commonly there are different ways to invest here is a detailed look at the most types
of MF’s.
Types of Mutual Fund

Mutual Funds

Investment Structure

Long Term fund Medium Term Short Term fund

fund

Equity Funds Balanced Funds Debt Funds

(long term >7 (medium term (short term 1-3
yrs) 3-7 yrs) yrs)

Index
(for longfund
term > Debt Oriented Open
7 yrs ) funds Liquid fund
funds
(<1 yr)
Large Cap
Equity Oriented
funds Income fund Closed
Multi Cap funds

Asset Allocator Gilt fund

Mid Cap

Floating rate
Small Cap
fund

Sectoral Fund
Short term bond

Medium term
bond

Fig no 2.1 : Types of funds

 MF’s are divided into Two parts

I. Investment
• Equity funds
• Balanced funds
• Debt funds
II. Structure
• Open funds
• Closed funds

Investment

1. Equity funds (EF’s)

EF’s can be termed as growth funds. 65% of funds are invested in equities or stocks .
Their aim is to reach long term capital growth. They invest across various sectors of the
economy that helps them in investment which avoids high risk. The term period is more
than 7 years. Equity funds buy stocks in publicly traded companies.

Different types of equity mutual funds are as follows:

a. Index fund

Index funds invests in schemes which mirror the composition of major stock may be
indices like NIFTY, BSE Sensex and so on. These funds give returns similar to the
index. In Index funds portfolio is comprised of stocks which represent index and
weightage to each stock. Therefore the returns will be high or less by the Index.

b. Large Capital

Large Capital companies are the top 100 Indian company as per their market capital.
These are transparent and makes the investors to find information. They generate stable
revenue and earnings.

c. Multi Capital

Multi capital are a type of diversified funds which can be invested in stocks across the
market. They consists of a group which includes various groups of funds. They are less
risky compare to small and mid-capital.
d. Mid Capital

These are the market capital companies where the amount ranges between 101-250.
The risk involved in this is much more compared to large stocks and less when
compared to small stocks.

e. Small Capital

Small capital companies have an amount less than 251 and below. They have a balanced
growth potential

f. Sectoral funds

The kind of schemes which invest in companies of a particular segment such as

Banking and IT sectors etc are called as sector funds. They have a tendency to create
long term capital obligation by contributing equities as per the development in the
sector.

2. Balanced funds

Balanced fund also called as hybrid funds which consist of stock and bonds. This is a
best option for intermediate-term investors. They commonly have 60% is reserved to
stocks and 40% for bonds.

Different types of balanced funds are as follows:

a. Debt Oriented fund

These schemes put their investments in government securities and other types of
Corporate Debt. The debt funds market volatility is less compared to equity. Net asset
value is affected because of the floating interest rates. These funds also hold some
amounts in equity stocks to provide slightly better returns than pure debt funds.

b. Equity Oriented fund

Equity funds invest in equity stocks, about 60% of portfolios are invested in these
stocks. They are for high risk appetite investors and offers high returns, the main
objective is to provide capital appreciation for long term investments. The remaining
amount is invested in debt, money market instruments which helps in reducing the risk.
c. Asset Allocator

Asset allocation fund is a mix of various classes where the fund provides investors a
diversified portfolio which is held in fixed percentages or allowed weightage from the
market i.e. stocks, bonds which are spread for diversification.

3. Debt funds

Debt funds are types of MF’s that deposits different kinds of debt instruments like
bonds, commercial paper, treasury bills which are fixed income securities with maturity
over short period and long period . They are usually for the individuals who are not
willing to invest in high risk equity market. People mainly invest money to reduce the
tax so that an individual can prefer debt funds as an investment option. The term period
varies from 1-3 years.

Different types of debt funds are as follows:

a. Liquid fund

Liquid fund are short term funds in the money market. The maturity period for these
investments is 91 days. These funds provides safety of capital to the investors. There is
a low risk, compared to other funds these funds offer higher returns in the bank. There
is no specified limit of withdrawal amount in this fund. These are meant for parking
funds for a short term < 1 year.

b. Income fund

It helps investors in generating income over a short duration of time with safety. Price
of income funds are not fixed, this generates the diversification of investments in a
particular sector of a portfolio.

c. Guilt fund

Guilt funds are government based funds issued by central and state government. The
maturity period of this fund is 3 years these have high liquid market which can be easily
bought and sold which helps in preserving the capital with the moderate returns. When
compared to equity fund it offers lower return.
d. Floating rate fund

These schemes deposit in debt securities with fluctuating rates that are usually linked
to standard rate like MIBOR (Mumbai Interbank Offer Rate). Mibor is the interbank
rate of India. It is the charge of interest charged by bank for a short period of loan to
alternative bank.

e. Short term debt

Short term debt means company’s loans and liabilities which will not become due for
one year in the balance sheet. The maturity value is not exceeding 12 months.

f. Medium term debt

Medium term is also called as intermediate debt. Where the maturity value is 2 to 10
years.

BASED ON STRUCTURE

a. Open-ended funds

Open end funds allows depositors to enter and exit the funds anytime. Funds have no
limitation on amount of units. In turn they receive NAV at the period of re-selling. Such
firms pledge assets in secondary market. They usually do not contribute in the primary
market the same goes with the pension funds and life insurance company. Unlimited
number of shares can be sold by the open-end investments company and hence keep
going bigger.

b. Closed-end funds

These funds are open available to be purchased of the customers /investors on a specific
period at a specified number of shares to be traded in a day. Any further transactions to
repurchasing those units happen done in optional markets, these are recorded. These
units can be purchased from the existing investors. Individuals can also interchange
these units by offering different purchases. The cost during which these units could
have a chance to be recovered relies upon the cost which would connect on NAV.
Advantages of MF’s

1. Advanced portfolio Management

Expert portfolio director who buys and sells bonds, stocks hired by paying management
fee a part of expense ratio. They are relatively a minor fee to pay for assistance to
organization of investment portfolio.

2. Re-investment of premium

As re-investment premium and various interest salary is announced for fund that is
spent for the buying the extra shares in Mutual fund, so that will help investments to
grow much better.

3. Risk Reduction

The group of risk is reduced by the practice of diversification because usually Mutual
funds will deposit from 50-200 securities. Many index stock Mutual funds own 1000+
specific stock places.

4. Convenience and fair pricing

Mutual funds remains easy and common to purchase. Funds regularly have smallest
investment deposits and are exported only after the end of a day at closing NAV which
foregone the fluctuation in price throughout the day and also has numerous
opportunities as the trader practice.

Disadvantages of Mutual Fund

1. High Sales Charges and expense ratio

The lack of awareness to mutual fund expenditure ratios and sales fees may lead to
investments going out of hand. So it is important to be very careful when participating
in funds with expenditure ratio more than 1.21% as they are considered as higher cost
at the end.

2. Poor-trade Performance

If an individual place a MF trade earlier the time he will receive the same closing price
for his buying and selling the NAV on the mutual fund.
3. Loss of Control

The directors of MF’s take the decision’s about buying and selling but when it comes
to the investors they usually trust the third person and deposit.

4. Trading limitations

Though MF are highly liquid and open – ended funds they cannot be sold or purchased
during the trading hours. Only after the end of day they can be traded.

5. wide choices

As there are Many schemes available it becomes difficult to the depositor to choose the
best to get high returns with a low managed cost.

Overview of 8 selected schemes

1. Mirae Asset Large Cap Fund

The investment purpose of mirae asset scheme is to create a long term capital
obligation. The scheme is accessible under Regular and Direct plan with a joint
portfolio. It was founded in 4th April 2008. The trust manager is Mr. Misra and Mr.
Harshad Borawake. Mr. Misra comes have a 24 years’ experience and manages total
funds. Mr. Harshad is research analyst. Risk is moderately high. Minimal investment is
Rs.5000 and withdrawal amount is Rs.1000. Minimum no of cheques can e used is 5.
Minimum SIP investment is Rs.1000. The trust management invests in big companies.

2. HSBC Multi Cap Fund

The trust management team can invest in any companies. It was started in 24 Feb 2004.
The risk is moderately high compared to other funds, minimum investment is Rs.5000
and withdrawal of the amount is Rs. 1000 number of cheques to be used is 12 and Sip
investment is about Rs.500. The trust manager is Neelotpal Sahai.

3. DSP Mid Cap Fund

The management team can deposit in any medium sized companies. This was launched
in 14 Nov 2006. The risk is moderately high. Minimum to be invested and withdrawal
and also SIP to invest is about Rs. 500. Minimum no of cheques to be used here is 6.
The trust is managed by Resham jain.
4. Kotak Small Cap Fund

The management team allows to deposit in smaller companies, launched in 24 Feb

2005. Least amount to be deposited is Rs. 5000 and SIP and withdrawal amount to be
reserved at Rs.1000. the trust manager is Pankaj tibrewal.

5. Axis Blue Chip Large Cap Fund

Funds can be deposited in big companies. It launched in 5 Jan 2010. The minimum
deposit amount is Rs. 5000. Withdrawal amount is Rs.1000 and Sip investment is about
Rs.500. Cheques can be used here is 6. The trust manager is Shreyas Devalkar.

6. SBI Magnum Multi Cap Fund

The trust management team can invest in any companies. It was started in 29 Sep 2005.
The risk is moderately high compared to other funds, minimum investment is Rs.1000
and withdrawal of the amount is Rs. 500 number of cheques to be used is 12 and Sip
investment is about Rs.500. The trust manager is Upadhyay.

7. L&T Mid Cap Fund

The management team can deposit in any medium sized companies. This was launched
in 09 Aug 2004. The risk is moderately high. Minimum to be invested Rs.5000 and
withdrawal is Rs 500,also SIP to invest is about Rs. 500. Minimum no of cheques to be
used here is 6. The trust is managed by Mr. Naik.

8. HDFC Small Cap Fund

The management team allows to deposit in smaller companies, launched in 3 April

2008. Least amount to be deposited is Rs. 5000 and SIP and withdrawal amount to be
reserved at Rs.500. trust manager is Chirag Setalvad.

2.2 LITERATURE REVIEW

1) Jack (1965) He has created a methodology that calculates the performance of mutual
fund that is shown as a reward in volatility , that can be defined as too much return on
average of group.

2) Sharpe (1966) He has developed a technique that evaluates the performance

evaluation using a composite measure and he also imported extraordinary or superior
performance.
3) Sujith Sudhakar (1996) The study is based on investment in mutual funds and
equity based on income earning and capital appreciation during the period 1992-94. It
has shown that depositors of mutual funds are employed. The depositors concentrated
on diversification in funds, and then they opted combination of fund and equity.
Another best way they founded by taking the survey about 80% of respondents choose
UTI funds. Other funds was not proved by the investment in public. The main factor
which impacted here is investors of middle class was the first investors to hold portfolio
a longer period of time.

4) National Council of applied Economic Research (2000) The factors which

influence the decision was found by NCAER in this paper, it is the difference in
investors perception in process of investing on the foundation of difference in investors
outlook of age and gender.

5) K. Pendaraki (2001) He studied portfolio construction of mutual funds. He also

constructed a criteria that has several methodology and also which are used in equity
mutual funds. This method is created on continuous and discrete mixture of numerous
methods of decision of mutual funds for selection.

6) Michael k Berkowitz (2002) The performance of comparison is based on fees and

changes made by mutual funds. There had been a differences between high and low
quality funds. They analyzed that high level managers had a positive opinion on fees
and performance and low level managers had a negative impact. The result impacted
that directors are responsible for safeguarding the shareholder’s interest would be
inefficient.

7) Roshini Jayam (2002) In this study equity has a good chance of gratitude in the
future. Researcher reviewed that depositors should judge their asset and also risk before
option schemes. Diversified funds was much better when compared to others. The
researcher suggested that systematic withdrawal was best for investors.

8) S Narayan Rao (2003) The performance is based on MF’s based on performance

index and return analysis. This study includes the use of open-ended scheme which
were finalized for further procedure. That resulted excess return and expected return
based on whole risk.
9) D N Rao (2005) This learning “Investment working of MF’s in India” has classified
in to 419 open end organizations and analyzed the open end schemes for the financial
year 2005-06. Pertaining the styles of Investment he has also tested the hypothesis to
find the performance in the differences. A comparison of 21 open ended dividend was
originate that seventeen plans have given high earnings at a higher risk.

10) K Selvavinayagam (2012) In this article “study on performance of debt and equity”
he explained about the MF’s and also explained about many types of MF’s like equity
hybrid , and guilt fund etc. This study mainly focuses on performance schemes in equity
and debt fund which helps the investors to generate a best investment option. The tools
used here is standard deviation, beta which is usually done by Calculating treynor
measure, sharpe measure. With the help of secondary data they have chosen 5 years
fund value of equity and debt.

11) Deepak Agarwal (2011) In the study “computing the mutual funds” touched the
impact of regulations in the economy 1992 and also expansion of capital marketplace
in India. Mutual funds have been taken the contributors for the globalization in financial
market. The study analyzed about the individual saving habits and fund managers which
affects the industry.

12) Dimple Batra (2012) she has done a comparison of lump sum and systematic
investment plan. She has explained about the investments for the investors to either opt
directly or indirectly. The objective of the comparison is used by data envelopment
analysis using Jensen measure. This study suggests that young investors are preferring
systematic investment plan than the aged people.

13) Mahesh P Patel (2012) In this study performance estimation of Indian funds
touched the impact of Indian funds where it is carried through relative index , sharp
measure, Jensen measure, and treynor measure. Information has been chosen from
website called Association of MF’s , the data is collected from the period of 1 Jan
2007 to 31 Dec 2011. Closing value of NAV has been taken for conducting a research.
This study suggests that performances of funds have given positive returns from 2007
to 2011.
14) R Narayanaswamy (2013) He explains that the capital market provides investors
various options to invest in different industries and earn a profitable return. Therefore
he says opting mutual funds for the purpose of investment is very important. In this
study performance is based on equity funds that are offered for investments from
various fund houses in areas of risk and return bond. Main purpose of work is to
analyzing the performance of selected equity funds through different statistical tools
like alpha, beta and sharpe ratio. This study will help the investors for making future
decision’s.

15) PT Yash (2014) In this study he has been taken to analyze the earnings and
measures of equity and debt organizations from the data. The tools used here is SD,
Beta, Sharpe and Treynor ratio. The study suggests that from evaluating all the equity
funds , UTI has been resulted the best and the lowest SD and maximum charge of
alpha.

16) Dhanraj Sharma (2014) In this study, effort has been done to evaluate
performance selected equity funds on risk free rate and bench mark return for 5 years.
The sample data has been consisting of 10 growth equity funds which belong to 5 public
and 2 private funds. To obtain results tested through coefficient of variation, sharp ratio,
Jenson ratio. Closing value of NAV and market index value is considered for data. The
training period ranges since April 2007 to March 2012. Study resulted that from 10
schemes, 3 have underperformed the market and 7 have low total risk compared to
market where all the schemes have given high returns than risk free rate. This study
suggest that market place return has affected at 5%.

17) Sudhakar (2016) A learning based on selected equity oriented assets in India he
has explained about the mutual funds and entered in the era1964. From this there has
been attraction of various depositors and investigation groups. A learning has made an
effort to analyse equity growth fund. 80 funds were selected during the period 2005 to
2015. Study evaluated functioning of schemes founded on returns variables. Many
variables were included in the study like gold prices, interest rates etc. Research
concluded that fund and economic issues are affected in the analysis of funds.
hypothesis was tested at 95% level.
18) Geeta Rani (2017) The study is based on selected topper schemes he has explained
the funds which are more effective instruments for small and medium investors which
offers them to participate in capital market. And also facility of diversification helps
investors to invest in different schemes. Over a period of time UTI has played a
monopoly player in the industry. The main objective of the investigation is estimate
the performance of funds on basis of CRISIL ranking. To analyse the performance
mean return, standard deviation, were considered. From this research Tata equity found
to be good performer among the selected scheme during the period of April 2016 to
March 2017.

19) Hamdani (2018) The study is based on equity MF and factors that affect
performing of depositor. The study evaluates that analysis of equity fund by hazard
performance anticipated by treynor and inspects the factors using fund size and
inflation. To achieve the research objectives total 19 equity sampling technique from a
time of 2011 to 2015. The study concluded that equity funds tends to fluctuate because
of planning skill and fund size depends on performance.

20) Shailesh Singh Thakur (2019) The present paper is to do a comparison of rank
performance and growth oriented fund schemes. Some of the funds opted for the
research are Franklin fund, UTI, HDFC and so on. The comparison is done by taking
Closing NAV from a period of Nov 2013 to Dec 2018. Nifty Index have been taken as
market portfolio. Evaluation is done on the base of CAGR, Average returns. It revealed
that Franklin fund have performed good compared to other funds. To consider the nifty
index it has generated negative returns.

2.3 LITERATURE GAP

The different aspects of literature associated with MF of researchers over the years are
collected and studied . Most of the research are done using analysing equity schemes
by Sharpe, Treynor and Jensen index and also they have chosen closing value of NAV.
But there are enormous time gap present for great investigation on aspects of selected
funds. Thus to fill this time gap of research our study mainly focus on the selected
Equity MF schemes and there performance evaluation in comparison with Benchmark
Index. Also Risk-return adjustment of the each selected fund is analysed.
 CHAPTER 3

RESEARCH DESIGN

3.1 STATEMENT OF THE PROBLEM

The investment in equity MF schemes consist of a risk factor but at the same time it
have a scope to gain potential profit. Since in equity MF schemes the fund manager
deposit in equity shares which are exposed to different types of risk like market risk,
price risk, political risk, industry risk, domestic and global economy risk etc. Since each
depositor has their own capacity to take risk they should have a clear cut information
about the risk associated with each type of equity MF ‘s which they are selected to
invest their money and what is return they are gaining over a period of time. Also equity
MF’s performance depends up on how stock market moves. Hence in this study
Selected funds are evaluated by using Sharpe, Treynor and Jensen to analyse hazard
factors are poor or good

3.2 NEED FOR THE STUDY

In the present world there are various amount of funds so that depositors are more
confused about on which they have to invest. Investment plays a very important role in
economic development a nation. So, investment contains a risky factor because
depositor will invest a part of saving to earn more.

This is conducted for the following reasons:

• To understand the concept of MF’s.

• To study various types of MF’s.
• To have an idea about how much risk is associated with the equity mutual funds.
• To understand the performance of the selected funds over period of time and
what factors influence for better performance.
• To get an awareness about various factors which influence the investment in
mutual funds.
3.3 OBJECTIVES OF THE STUDY

• To study Risk and return of selected MF schemes.

• To evaluate the performance of selected funds using Sharpe, Treynor, Jensen.
• To compare the performance of selected MF schemes with the benchmark-
Nifty 50 index.
• To suggest investors for opting the best funds among the selected equity mutual
fund schemes.

3.4 SCOPE OF THE STUDY

This study includes 8 equity fund schemes – Mirae asset Large Cap Fund -Regular Plan
, HSBC Multi Cap Fund-Regular Plan , DSP Mid Cap Fund- Regular Plan, Kotak Small
Cap Fund-Regular Plan, Axis blue chip Large Cap Fund-Regular Plan, SBI Magnum
Multi Cap Fund-Regular Plan, L&T fund Mid Cap Fund - Regular Plan, HDFC Small
Cap Fund - Regular Plan. The study covers performance of 8 fund schemes by
calculating Average return, SD, and Beta value over a period of 10 years from 2010 to
2019. It also studies the fund’s operation in comparison with Benchmark Index Nifty
50. Study also focuses on risk and return factor of funds are evaluated, to evaluate the
performance Funds are compared with benchmark ( NIFTY 50 ) market return to
evaluate performing of funds. Research is based on NAV values and market price on
equity. This study helps a depositor to choose best option in investing by evaluating of
selected funds.

3.5 RESEARCH METHODOLOGY

Type of research

The type of study adopted is Descriptive Research which is also called as statistical
research. It describes the data and charactering about the people or phenomenon being
studied.

Method of data collection

Secondary data

The main source of data includes secondary sources like websites, Reports, magazines,
Literatures, newspaper, articles etc.
In this study daily closed NAV of selected MF schemes for a period of ten years i.e.
from 4 Jan 2010 to 31 Dec 2019 are gathered from websites – moneycontrol.com and
www.amfiindia.com website. The daily closed Nifty 50 index value is collected
directly from NSE website – https://in.investing.com . Further we took 91 days treasury
bill of GOI as on 2019 (6.40%) as a replacement of risk free return.

TOOLS USED FOR ANALYSIS

To analyze whether funds are outperformed or underperformed when compared to

Benchmark index Nifty 50 succeeding tools have been used.

• Average return of selected MF are calculated using daily closed NAV value of
funds.
• Total risk – SD and Beta (Systematic risk) were calculated.
• Risk and return factor of schemes were measured by calculating Sharpe,
Treynor and Jensen.

Average returns : Evaluation assessment is done by comparing the returns with the
standard portfolio. In this learning, the returns have been called as normal returns. This
return is gained by taking mean of day to day returns, whereby every day returns are
calculated by utilizing NAV fund scheme.

Return = Todays NAV - Yesterday’s NAV X 100

Today’s NAV

Standard Deviation (SD) : It is also a tool in statistics which helps in measuring the
variations of returns from the actual value, it can also be shown by symbol “ sigma” (б)
SD can be calculated by formula

SD = ∑ ( x-x)²

n
Beta (β) : Beta is a degree of systematic risk. Mostly it shows the level of stability
associated with fund as compared to Standard . Any fund which is nearer to 1 then it
indicates performance is similar to Index. If the fund is less than 1 then in indicates less
volatile when compared to benchmark index or market as a whole. If beta value of a
fund is more than 1 which indicates volatility is more when compared to bench mark
index or market volatility as a whole.

β = Covariance

Variance

Sharpe Index: This index assesses fund’s extra return of risk. This portion indicates
relationship linking portfolio’s return over risk-free return and whole risk, which is
computed in terms of SD. High-level and positive represents that superior performance
of fund whereas low-level and negative represents unfavourable performance of fund.
When sharpe is higher than standard , the fund performance is higher in the market
place and vice-versa.

Sharpe Index = Rp – Rf

SD

Where,

Rp : Average rate of return of selected scheme

Rf : average risk free rate of return

SD: Standard Deviation

Treynor Index: It measures the relationship between funds extra return over hazard
free which is measured by beta. The bigger treynor degree superior portfolio has
performed . Usually, if treynor degree is more standard comparison, the portfolio has
beated the marketplace and representing larger hazard. By operating with beta , we
take on portfolio which is broadened.

Treynor Index = Rp – Rf

β
Where,

Rp : Average rate of return of selected schemes

Rf : Risk- free return

β : Beta of selected schemes

Jensen Index: Jensen Index is risk adjusted performance measure that indicates
average return on portfolio. It is also referred as alpha. If value is positive then portfolio
is able to earn excess returns i.e. it indicates that it has beat the market with their stock.

Jensen measure = Rf + β ( Ri – Rf)

Where,
Rf : Risk -free rate of selected schemes
Rp: Average rate of return
β : Beta of selected schemes
Regression Analysis:

To test the following Hypothesis regression analysis tool is used . Regression analysis
is a tool worked to determine change in one variable for given sum of change in another.
From this we can know the unknown variable from the known value of different
variable.

3.6 HYPOTHESES

Null Hypotheses (H0) : Selected Equity Mutual fund schemes return does not depend
upon the Benchmark index - Nifty 50 return.

Alternative Hypotheses (H1) : Selected Equity Mutual Fund Schemes return depends
upon the Benchmark index – Nifty 50 returns.

3.7 LIMITATIONS

• The study focuses on 10 year historical data of funds.

• The study is restricted to the information and data available from Internet
websites.
• For future performance Historical data cannot be taken as a perfect measure.
• Due to Finance and time constrains only 8 schemes are taken into consideration.
3.8 CHAPTER SCHEME

The Chapter Scheme Includes following Chapters

Chapter 1 : An overview of MF: This chapter includes the following that presents
Introduction, History of MF, development of shared reserves, It also contains Profile of
organization, vision, mission, Policies. Products & Services, Structure of offices,
Particular region of operation, Competitor’s, SWOT examination and Future Growth
and Prospectus.

Chapter 2 : Conceptual Framework of MF: This chapter presents Theoretical

Background and Literature Review : Theoretical Background, Types of MF’s,
Advantages and drawbacks of funds and Literature Review.

Chapter 3 : Research Design: This chapter presents Statement of the issue , Required
for the Study, Objective of the Study, Scope of the Review , Research Methodology ,
Limitations and Chapter Scheme.

Chapter 4 : Analysis and Interpretation : This chapter provides analysis and

explanation with related tables and graphs of the data gathered. Often included are
findings derived from statistical methods.

Chapter 5 : Findings, Conclusion and Suggestions : This chapter represents overall

summary of findings, Conclusions, and Recommendations.
 CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

Data analysis is one of the main part in decision making. Data analysis is done to
recognize the particular problems of business . Various techniques to analyze the data
to find out the results of the company. The main intension of this data analysis is to
study the risk adjusted returns of the selected 8 Equity funds.

1. Statistical description of return and risk of equity schemes

The performance assessment is done by comparing the returns of MF scheme with
returns to Nifty 50 Index which is Benchmark of market place.

Table no 4.1 : Table showing Average Return, SD and Beta value of Eight Selected
Equity MF Schemes And Nifty 50 Index of ten year from 2010 to 2019.

Sl. MF Scheme Name Average Standard Beta

No ROR Deviation
1 Mirae Asset Large Cap Fund - 0.05446 0.9417281 0.61821
Regular Plan
2 HSBC Multi Cap Fund- Regular 0.01507 1.0470674 0.91176
Plan
3 DSP Mid Cap Fund-Regular Plan 0.01442 1.1876688 0.79725

4 Kotak Small Cap Fund-Regular 0.03188 0.9655972 0.58715

Plan
5 Axis Blue Chip Large Cap Fund- 0.02170 1.0329707 0.89568
Regular Plan
6 SBI Magnum Multi Cap Fund- 0.02170 1.031703 0.86261
Regular Plan
7 L&T Mid Cap Fund-Regular 0.02491 1.0331294 0.74544
Plan
8 HDFC Small Cap Fund- Regular 0.01712 1.0519649 0.82292
Plan
9 NIFTY 50 Index 0.03305 0.9892055 1
Graph No 4.1 : Chart showing Return and risk of Equity Schemes

Risk and Return

1.4 1.2
1.2 1
1 0.8
0.8
0.6
0.6
0.4 0.4
0.2 0.2
0 0

Average ROR Standard Deviation Beta

Interpretation : Above table and Graph 4.1 shows Average Risk and return of selected
schemes and Benchmark Index – Nifty 50 of ten year’s period from 4th Jan 2010 to 31st
Dec 2019. From above table we observed that Mirae Asset Large Cap Fund have
performed better than other schemes since its average return was higher i.e. 0.05446
when compared to other schemes and Nifty 50 Index average return – 0.03305 also
have a lower SD and Beta value – 0.9417281 and 0.61821 respectively when compared
to other funds. Mirae Asset out performed when compared to Nifty 50 Index which has
SD 0.9892055 and beta 1 which indicates Mirae asset fund have less risk and volatile
when compared to market as a whole. The fund’s return adjustment was good. DSP
Mid Cap Fund performed poor among 8 funds having least average return 0.01442 and
high SD 1.1876688 indicating low return and high risk. i.e. fund’s risk adjustment was
poor. Kotak Small Cap Fund is in the second position and having average return
0.013188 and SD 0.9655972. L&T Mid Cap Fund was in third position which has
average return 0.02491 but has higher SD 1.0331294 indicating high risk. We observed
that SD values of 8 funds DSP Mid Cap Fund and HDFC Small Cap Fund got higher
values among selected funds. i.e. 1.1876688 and 1.0519649 respectively indicating that
these funds have exposed to high risk. Beta values of all the eight equity funds are less
than 1 indicating they are less volatile when compare to Nifty 50 Index. Kotak Small
Cap Fund got at least beta value 0.58715 when compared to funds.
2. Sharpe Index

Sharpe calculates the fund’s over return per unit of its risk. This measure specifies the
relationship between the portfolio ‘s extra return over risk - free return and whole risk
of the collection, which measured in terms of standard deviation. The results of the
Sharpe measures of the selected MF schemes are given below.

Table No 4.2: showing Sharpe Index of 8 selected Equity MF Schemes and Nifty
50 Index.

Sl. No MF Scheme Name Sharpe Index

1 Mirae Asset Large Cap Fund - -0.010128189
Regular Plan
2 HSBC Multi Cap Fund- Regular -0.04672173
Plan
3 DSP Mid Cap Fund-Regular Plan -0.0417431

4 Kotak Small Cap Fund-Regular -0.033260346

Plan
5 Axis Blue Chip Large Cap Fund- -0.040942788
Regular Plan
6 SBI Magnum Multi Cap Fund- -0.041286494
Regular Plan
7 L&T Mid Cap Fund-Regular Plan -0.037833305

8 HDFC Small Cap Fund- Regular -0.044557475

Plan
9 NIFTY 50 Index -0.031285751
Graph No 4.2 : Chart showing Sharpe Index

Sharpe Index
0

-0.005

-0.01

-0.015

-0.02

-0.025

-0.03

-0.035

-0.04

-0.045

-0.05

Interpretation : Above Table and Graph 4.2 shows Sharpe Index of 8 Equity Funds
and Nifty 50. Above table we observed that Mirae Asset Large Cap Fund have
performed better than other schemes since its showing high performance i.e. -
0.010128189 when compared to other schemes and Nifty 50 Index is -0.031285751.
HSBC Multi Cap Fund performed poor among 8 equity funds having low performance
i.e. -0.04672173 indicating funds risk adjustment factor was poor. Kotak Small Cap
Fund is in second position having a return -0.33260346. L&T Mid Cap Fund was in
third position which has a return -0.037833305. we observe that other funds have low
performance among selected 8 Equity funds respectively compared to Nifty 50 i.e. -
0.031285751.

2. Treynor Index: This shows the connection of fund over risk free hazard and market
place risk which is calculated by beta. The greater value of Treynor measure, the
progress of performance is better.
Table No 4.3: showing Treynor Index of 8 selected Equity MF Schemes and Nifty
50 Index.

Sl. No MF Scheme Name Treynor Index

1 Mirae Asset Large Cap Fund -Regular -0.01542
Plan
2 HSBC Multi Cap Fund- Regular Plan -0.05365

3 DSP Mid Cap Fund-Regular Plan -0.06218

4 Kotak Small Cap Fund-Regular Plan -0.05469

5 Axis Blue Chip Large Cap Fund- -0.04721

Regular Plan
6 SBI Magnum Multi Cap Fund- Regular -0.04937
Plan
7 L&T Mid Cap Fund-Regular Plan -0.06094

8 HDFC Small Cap Fund- Regular Plan -0.05695

9 Nifty 50 Index -0.030948038

Graph No 4.3 : Chart showing Treynor Index

Treynor Index
0

-0.01

-0.02

-0.03

-0.04

-0.05

-0.06

-0.07
Interpretation : Above Table and Graph 4.3 shows Treynor Index of 8 Equity Funds
and Nifty 50. Above table we observed that Mirae Asset Large Cap Fund have
performed better than other schemes since its showing high performance i.e. -0.01542
when compared to other schemes and Nifty 50 Index is -0.030948038. DSP Mid Cap
Fund performed poor among 8 equity funds having low performance i.e. -0.06218
signifying funds risk adjustment factor was poor. Axis Blue Chip Fund is in second
position having a return -0.04721. SBI Magnum was in third position which has a return
-0.04937. we observe that other funds have low performance among selected 8 Equity
funds respectively compared to Nifty 50 i.e. -0.030948038.

3. Jensen Index: Jensen degree is one of way to decide if scheme is gaining the return
over its level. If it indicates positive then schemes is gaining over returns.

Table No 4.4: showing Jensen Index of 8 selected Equity MF Schemes and Nifty
50 Index.

Sl. No MF Scheme Name Jensen Index

1 Mirae Asset Large Cap Fund -Regular 0.04567
Plan
2 HSBC Multi Cap Fund- Regular Plan 0.03694

3 DSP Mid Cap Fund-Regular Plan 0.04031

4 Kotak Small Cap Fund-Regular Plan 0.04657

5 Axis Blue Chip Large Cap Fund- 0.03711

Regular Plan
6 SBI Magnum Multi Cap Fund- 0.03853
Regular Plan
7 L&T Mid Cap Fund-Regular Plan 0.04188

8 HDFC Small Cap Fund- Regular Plan 0.03957

9 Nifty 50 Index 0.033051963

Graph No 4.4: Chart showing Jensen Index

Jensen Index
0.05
0.045
0.04
0.035
0.03
0.025
0.02
0.015
0.01
0.005
0

Interpretation : Above Table and Graph 4.4 shows Jensen Index of 8 Equity Funds
and Nifty 50. We observed that Kotak Small Cap Fund is showing good performance
i.e. 0.04657 compared to other schemes and Nifty 50 Index return i.e. 0.033051963.
HSBC Multi Cap Fund is showing poor performance i.e. 0.03694 but better compared
to Nifty 50 Index 50 i.e. 0.033051963. Mirae Asset Large Cap Fund is in second
position having a return of 0.04567. L&T Mid Cap Fund was in third position which
has return of 0.04188. we can observe that other performance have performed better
compared to Nifty 50 Index i.e. 0.033051963.
Test of Regression Analysis

Table No 4.5 : Table showing calculation of Regression Analysis test

MF Scheme Name R value R Square F- P –

Value Significance value
Mirae Asset Large Cap 0.638225386 0.407331644 0.0 0.0
Fund -Regular Plan
HSBC Multi Cap Fund- 0.845645072 0.715115589 0.0 0.0
Regular Plan
DSP Mid Cap Fund- 0.651734392 0.424757718 0.0 0.0
Regular Plan
Kotak Small Cap Fund- 0.675263102 0.455980257 0.0 0.0
Regular Plan
Axis Blue Chip Large 0.842267789 0.709415029 0.0 0.0
Cap Fund-Regular Plan
SBI Magnum Multi Cap 0.814072137 0.662713444 0.0 0.0
Fund- Regular Plan
L&T Mid Cap Fund- 0.701961535 0.492749996 0.0 0.0
Regular Plan
HDFC Small Cap Fund- 0.759804217 0.577302448 0.0 0.0
Regular Plan

Interpretation : The R value explains linear relationship between independent variable

and dependent variable. From above table R value ranges from 0.63822 to 0.84564
which indicates selected MF depends upon Nifty 50 index return. The R square explains
percentage change in independent variable will explain change in dependent variable
values. In this study HSBC Multi Cap Fund-Regular plan have higher value of R –
0.84564 and R square value 0.71511 (71.52%) which indicates fund return is strongly
in linear relationship to Nifty 50 returns i.e. 71.52% percentage change in nifty 50 return
will define the change in HSBC fund return. Here, F value and P value is less than 5%
significance level i.e. 0.05, indicates independent variable nifty 50 return is associated
with changes in dependent variable selected MF returns. Hence null hypothesis is
rejected and alternative hypothesis is accepted.
 CHAPTER 5

FINDINGS, CONCLUSION AND SUGGESTION

5.1 FINDINGS

• Some schemes have given best performance, some have given bottom level
performance.
• The returns are somehow interrelated in the MF schemes because positive
returns and negative returns are same described period of all schemes. It shows
these schemes are affected the changes in the market.
• All the schemes have given negative returns based on fluctuations in the market
it gives average returns.
• Overall Mirae Asset Have performed better when compared to other schemes.
• Overall HSBC Multi Cap Fund and DSP Mid Cap Fund is showing poor
performance.
• Secondly, Kotak Small Cap Fund is doing good. In third position L&T Mid Cap
fund is also generating Fair Return.
• Hence if investor wants to invest he can opt for Mirae asset Large Cap Fund for
long term investment as it provides good returns and risk adjusted performance
is better.

5.2 CONCLUSION

The results shows that out of eight only Mirae Asset Large Cap Fund have lesser value
than the benchmark which shows high performance in Sharpe measure. Treynor index
reveals that one out of eight equity schemes is greater than benchmark comparison.
Jensen measure reveals that eight out of eight equity schemes are showing good
performance compared to Nifty 50 . In performance of combination of 8 schemes
Sharpe and Treynor is showing negative performance and Jensen measure is performing
positive. By this we can conclude that comparison of schemes with benchmark some
schemes are performing good. Further fund manager should focus on market
movements and impact with taking time as consideration ,where he should think
rationally while investing depositors money.
This evaluation would be helpful for investors before depositing in certain schemes to
take appropriate decisions for their saving where they wish to deposit cash.

5.3 SUGGESTION

• If an investor is looking for good returns in a long term basis it is better to invest
in Mirae Asset Large Cap Fund because it has performed well among selected
funds.
• If an investor is looking for consistent return across selected ones then he can
choose for Kotak Small Cap fund because it is in second position among 8
schemes.
• If an investor is looking for Fair Returns he also has an option to deposit in L&T
Mid Cap Fund.
• If Alpha is more than 1.0 means then it has outperformed Benchmark Index and
if it is -1.0 then it is underperforming Benchmark Index.
• Beta helps in measuring the Index if value is more than 1 then it indicates high
volatile, if less than 1 it indicates less volatile.
• Greater Sharpe and Treynor ratio represents High risk adjustable performance,
so depositor is suggested to choose with high Sharpe ratio and Treynor ratio.
• If Jensen value is positive it represents outperformance of Fund and Vice-versa.
• For good returns it is safe to keep these schemes in hand for long term but it is
important for one’s financial position , risk appetite with plan the opt to invest.
• If an investor has no idea about investing he can look for Experienced ,
disciplined Management team i.e. one should know fund managers and their
past record.
 BIBLIOGRAPHY

Webliography
www.happyinvestor.com
www.moneycontrol.com
https://www.happyinvestor.in
https://www.happyinvestor.in/about-us/
https://www.amfiindia.com
www.mutualfunds.com
https://www.valuesearchonline.com
https://in.investing.com

Journals
Annual reports of Study on Mutual Funds
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