Performance Evaluation and Analysis of Mutual Fund: A Research On

A Research
On
Performance Evaluation and analysis of Mutual Fund
Submitted to
Faculty of Management
In partial fulfillment of the requirement of the award for the degree of
Integrated Masters of Business Administration
GLS University
Under the guidance of
Dr. Amish Soni
Submitted by
Taher Makada (201900620010484)
[Batch: 2019-21]
MBA Semester 3
May 2020
Faculty of Management
Certificate
This is to certify that Mr. Taher Ismailbhai Makada Enrolment No.

201900620010484 student of faculty of management has successfully completed
his/her Summer Research Project on “Performance Evaluation and Analysis on
Mutual Fund” in partial fulfillment of the requirements of MBA programme of GLS
University. This is his original work and has not been submitted elsewhere.
Place: Ahmedabad
Date: 31 May, 2020
X X
Dr. HITESH RUPAREL Dr. AMISH SONI
Dean Internal Guide
II
Declaration
I am Taher Makada. Hereby declare that the present research project paper is prepared by me.
And it is my own work for that practical paper of M.B.A semester-3
I declare this paper work is an original piece of one and secondary data is acknowledged by me.
This project work has not been submitted before and any other university for any degree of course.
Place: - Ahmedabad
Date: - 31 May, 2020
III
Preface
Research methodology is the specific procedures or techniques used to identify, select, process,
and analyze information about a topic. In a research paper, the methodology section allows the
reader to critically evaluate a study’s overall validity and reliability.
Investor’s behavior is influenced by many factors during investment decision making.

Demographic profile of investors is also one of the decision influencing factors among others. The
aim of this research is to examine the effect of demographic factors on preferences.
There are various factors which effect the financial decision making of an individual of which
demographic variables like age, gender and occupation, etc.
IV
Acknowledgement
We express our sincere thanks to our research project guide, Dr. Amish Soni for guiding us right
from the inception till the successful completion of the project. We sincerely acknowledge them
for extending their valuable guidance, support for literature, critical reviews of project and the
report and above all the moral support they had provided to us with all stages of this project.
Lastly, the report would not have been completed effectively without great guidance.
Thank You.
V
Table of Contents
Declaration.................................................................................................................................................. III
Preface......................................................................................................................................................... IV
Acknowledgement ....................................................................................................................................... V
CHEPTER – 1 ............................................................................................................................................... 1
1.1 Review of Literature ......................................................................................................................... 2
CHEPTER – 2 ............................................................................................................................................. 11
Research Methodology ............................................................................................................................. 12
2.1 Research Problem ........................................................................................................................... 12
2.2 Objective of Study ........................................................................................................................... 12
2.3 Research Gap .................................................................................................................................. 13
2.4 Scope of Study ................................................................................................................................. 13
2.5 Summary of Literature review ...................................................................................................... 14
2.6 Research design ............................................................................................................................... 18
2.7 Research Tools and Techniques..................................................................................................... 18
2.8 Hypothesis........................................................................................................................................ 20
2.9 Benefits ............................................................................................................................................. 20
2.10 Limitations ..................................................................................................................................... 20
CHEPTER – 3 ............................................................................................................................................. 21
3.1 Introduction to Industry................................................................................................................. 22
3.2 Growth of Mutual Fund Industry ................................................................................................. 23
3.3 Porter Five Force Model of Mutual Fund Industry ..................................................................... 26
3.4 Key players of the industry ............................................................................................................ 29
CHEPTER – 4 ............................................................................................................................................. 30
4.1 Introduction to Mutual Fund ......................................................................................................... 31
4.2 SWOT Analysis of Selected Companies ........................................................................................ 33
CHAPTER:5 ............................................................................................................................................... 44
Data Analysis & Interpretation ............................................................................................................... 45
5.1 Beta ................................................................................................................................................... 45
5.2 Sharpe ratio ..................................................................................................................................... 49
5.3 Treynor Ratio .................................................................................................................................. 53
5.4 Standard deviation .......................................................................................................................... 57
Findings...................................................................................................................................................... 61
Conclusin ................................................................................................................................................... 63
VI
Bibliography .............................................................................................................................................. 64
INDEX of Figure
Figure 1: Porter Five Forces .................................................................................................................... 26
Figure 2: MF Industry .............................................................................................................................. 29
Figure 3: Beta Analysis For 3 year .......................................................................................................... 48
Figure 4: Sharpe Ratio Analysis .............................................................................................................. 52
Figure 5: Treynor Ratio Analysis ............................................................................................................ 56
Figure 6: Standard Deviation analysis .................................................................................................... 60
Figure 7: Overall Analysis........................................................................................................................ 61
index of Table
Table 1: Beta Analysis 2017-2018 ............................................................................................................ 45
Table 4: Sharpe Ratio of 2017-2018 ........................................................................................................ 49
Table 7: Treynor Ratio of 2017-2018 ...................................................................................................... 53
Table 10: Standard Deviation of 2017-2018 ........................................................................................... 57
Table 11: Standard Deviation of 2018-2019 ........................................................................................... 58
Table 12 : Standard Deviation of 2019-2020 .......................................................................................... 59
VII
CHEPTER – 1
Literature review
1.1 Review of Literature
The review of literature gives a broad outlook of the various research studies made in the past and
the details of such studies throw light on the future studies to be made. It also strengthens one’s
theoretical base of the research study. Above all, it helps in defining the scope of the research and
in choosing the area of research study. The deficiencies of existing studies should help in
conducting new studies and updating the relevant literature.
V Single and Dr. R Manrai, Factor Affecting in Investing in Mutual Funds – Journal of General
Management Research, Vol. 5, issue 2, July 2018, pp. 96-107. A mutual fund is special purpose
institutional set up established specifically for investment purpose and it act as an investment conduit.
According to research paper mutual funds is lower risk investment and convenience and it reduces taxes.
Shanmugam (2000), conducted a survey of individual investors with the objective to find out what
investment source investor depend on. The result explain that they are economical, sociological and
psychological factors which control investment decision. The model explained 55.6% variance in factor
affecting in mutual fund. Fundamental factor such as part of performance, experience of the fund manager,
risk, return, diversification play a very vital and pivotal role of decision-making process of investors.
(Manrai, 2018, pp. 96-107)
Dr. S.P. Dhandayuthapani, M.K. Sindhu, A Study on Performance Evaluation of Selected

Diversifying of Mutual Funds Equity Schemes, International Journal of Research Culture Society
Vol. - 2, Issue - 5, May – 2018. Mutual fund invested in a well-diversified portfolio of different
companies. The findings of the study reveal that only three schemes have performed better than
benchmark. To study the performance evaluation of selected open-ended schemes in terms of risk
and return relationship. The importance of risk and return for any investment, this paper analyses
risk adjusted returns of mutual funds and also absolute returns. They have attempted to find out if
the fund managers have outperformed the benchmark for a given risk class. This reveals that the
selection of performance measure is very important in assessing the performance of the mutual
fund. (Sindhu, 2018)
Dr. Yogesh Kumar Mehta, Emerging scenario of mutual fund in India: An Analytical study on Tax
Fuds - International Journals of Research in Finance and Marketing, Vol. 2, Issue 2, Feb, 2018 pp.
251-264. He has studied Emerging Scenario of Mutual Funds in India: An Analytical Study of Tax
2
Funds. The present study is based on selected equity funds of public sector and private sector
mutual fund. Corporate and Institutions who form only 1.16% of the total number of investors
accounts in the MFs industry, contribute a sizeable amount of Rs. 2,87,108.01 crore which is
56.55% of the total net assets in the MF industry. It is also found that MFs did not prefer debt
segment. (Sindhu, 2018, pp. 251-264)
Dr. S. Bansal, D. Garg and S. K Saini, Performance Evaluation of Indian Equity Mutual Fund
Scheme, International journals of scientific research and review, Vol, 7, Issue 2, 2018, pp. 185-
197. They have studied Impact of Sharpe Ratio & Treynor’s Ratio on Selected Mutual Fund
Schemes. This paper examines the performance of selected mutual fund schemes, that the risk
profile of the aggregate mutual fund universe can be accurately compared by a simple market index
that offers comparative monthly liquidity, returns, systematic & unsystematic risk and complete
fund analysis by using the special reference of Sharpe ratio and Treynor’s ratio. (Dr. S. Bansal,
2018, pp. 185-197)
R Sharma and N. K. Pandya, Growth of Mutual Fund Industry in India, International Journals of
Research in Finance and Marketing, Vol. 7, Issue 6, June, 2017, pp. 213-216. In this paper,
structure of mutual fund, comparison between investments in mutual fund and other investment
options and calculation of NAV etc. have been considered. In this paper, the impacts of various
demographic factors on investors’ attitude towards mutual fund have been studied. For measuring
various phenomena and analyzing the collected data effectively and efficiently for drawing sound
conclusions, drawing pie charts has been used and for analyzing the various factors responsible
for investment in mutual funds. (Pandya, 2017, pp. 213-219)
Prof. V. Vanaja and Dr. R. Karrupasamy, Performance Evaluation of Public and Private Sector in
Mutual Fund in India, Asian journal of Research in Social sciences and Humanities, Vol. 6, No. 7,
July, 2016, pp. 1532-1547. They have done a Study on the Performance of select Private Sector
Balanced Category Mutual Fund Schemes in India. This study of performance evaluation would
help the investors to choose the best schemes available and will also help the AUM’s in better
portfolio construction and can rectify the problems of underperforming schemes. The objective of
the study is to evaluate the performance of select Private sector balanced schemes on the basis of
returns and comparison with their bench marks and also to appraise the performance of different
3
category of funds using risk adjusted measures as suggested by Sharpe, Treynor and Jensen.
(karrupasamy, 2016, pp. 1532-1547)
R Sharma and N. K. Pandya, A Study on Investors Perception towards Mutual Fund Investments,
International Journal of Commerce, Business and Management, Vol. 5, No.1, Jan-Feb 2016, pp.
124-128. Running successful Mutual Fund requires complete understanding of the peculiarities of
the Indian Stock Market and also the awareness of the small investors. This study has tried to
understand the financial behavior of mutual fund investors in connection with the scheme
preference and selection. An important element in the success of a marketing strategy is the ability
to fulfill investors expectation. The results of these studies through satisfactory on the investor’s
perception about the mutual fund and the factors determining their investment decision and
preferences. The study will be useful to the mutual fund industry to understand the investor’s
perception towards mutual fund investments and the study would also be informative to the
investors. (Pandya R. S., 2016, pp. 124-128)
Dr. E. Priyadarshini, Development and Performance Evaluation of Three Novel Prediction Models
for Mutual Fund NAV Prediction, Annual Research Journal of Symbiosis Centre for Management
Studies, Pune Vol. 3, April 2015, pp. 227–238. She has done Analysis of the Performance of
Artificial Neural Network Technique for Forecasting Mutual Fund Net Asset Values. In this paper,
the Net Asset Values of four Indian Mutual Funds were predicted using Artificial Neural Network
after eliminating the redundant variables using PCA and the performance was evaluated using
standard statistical measures such as MAPE, RMSE, etc. (Priyadarshini, 2015, pp. 227-228)
Wadhwa, B. Kaur, D. & Vashist, A., Investors Attitude towards Mutual Fund Investments: A
Study of Delhi-NCR Region, International Research communication, IRC’s International journal
of Research in Social and Management Science, Vol. 3, Issue 1, Jan- Mar, 2015, pp. 29-32. They
studied the factors responsible for the selection of mutual fund as an investment option and also
analyzed the impact of various demographic variables on investors attitude towards mutual fund
by taking three hundred respondents from Delhi region. One third respondents had given positive
response and half of them had neutral response towards mutual fund. The authors found significant
association between attitude and demographic features of respondents such as: age, gender, income
4
& occupation. It was also found that no significant association between education & attitude
towards mutual fund. (Wadhwa, 2015, pp. 29-32)
Dr. Nishi Sharma, Perception of Investors towards investment in Mutual Funds with special
reference to MIP (Monthly Income Plan) Funds, - International Journals of Research in Finance
and Marketing, Vol. 3, Issue 8, Aug, 2014 pp. 104-112. She has done research on Indian Investor’s
Perception towards Mutual Funds. This paper attempts to investigate the reasons responsible for
lesser recognition of mutual fund as a prime investment option. It examines the investor’s
perception with reference to distinct features provided by mutual fund companies to attract them
for investing in specific funds/schemes. The study uses principal component analysis as a tool for
factor reduction. The paper explored three factors named as fund/scheme related attributes,
monetary benefits and sponsor’s related attributes (having respectively six, four and four variables)
which may be offered to investors for securing their patronage. The results are expected to provide
fruitful insight to mutual fund companies for tailoring their offers suitable to cater the needs and
expectations of Indian investors. (Sharma, 2014, pp. 104-112)
C.Srinivas Yadav and Hemanth N C, Performance of Selected Equity Growth Mutual Funds in
India: An Empirical Study, Feb 2014. have studied Performance of Selected Equity Growth Mutual
Funds in India: An Empirical Study during 1st June 2010 to 31st May 2013. The study evaluates
performance of selected growth equity funds in India, carried out using portfolio performance
evaluation techniques such as Sharpe and Treynor measure. S&P CNX NIFTY has been taken as
the benchmark. The study conducted with 15 equity growth Schemes (NAV) were chosen from
top 10 AMCs (based on AUM) for the period 1st June 2010 to 31st may 2013(3 years). (C Srinivas,
2014)
Dr. K. Veeraiah and Dr. A. Kishore Kumar, Research on Comparative Performance Analysis of
Select Indian Mutual Fund Schemes, International journals of scientific research and review, Jan
2014. They had conducted a research on Comparative Performance Analysis of Select Indian
Mutual Fund Schemes. This study analyzes the performance of Indian owned mutual funds and
compares their performance. The performance of these funds was analyzed using a five-year
NAVs and portfolio allocation. Findings of the study reveals that; mutual funds out perform naïve
5
investment. Mutual funds as a medium-to-long term investment option are preferred as a suitable
investment option by investors. (Kumar, 2014)
D Jani and Dr. R Jain, Role of Mutual Funds in Indian Financial System as a Key Resource
Mobiliser, Abhinav International Monthly Refereed Journal of Research in Management &
Technology, Vol. II, December 2013, pp. 85-91. This paper attempts to identify, the relationship
between AUM mobilized by mutual fund companies and GDP growth of the India. To find out
correlation coefficient Kendall’s tau b and spearman’s rho correlation ship was applied, the data
range was selected from 1998-99 to 2009-10. (Jain, 2013, pp. 85-91)
Rajiv G. Sharma, A Comparative Study on Public and Private Sector Mutual Funds in India,
International Journal of Research in Humanities and Social Sciences, Vol. 1, Issue 6, Aug 2013.
He has done a Comparative Study on Public and Private Sector Mutual Funds in India. The study
at first tests whether there is any relation between demographic profile of the investor and selection
of mutual fund alternative from among public sector and private sector. For the purpose of analysis
perceptions of selected investors from public and private sector mutual funds are taken into
consideration. The major factors influencing the investors of public and private sectors mutual
funds are identified. The factors under consideration to compare between perceptions of public
and private sector mutual fund investors are Liquidity, Security, Flexibility, Management fee,
Service Quality, Transparency, Returns and Tax benefits. (Sharma R. G., 2013)
Dr. N. K. Sathya Pal Sharma and Ravikumar. R, Analysis of the Risk and Return Relationship of
Equity Based Mutual Fund in India, International Journal of Advancements in Research and
Technology, Vol. 2, Issue 8, Aug 2013, pp. 289-295. They have done the Analysis of the Risk and
Return Relationship of Equity Based Mutual Fund in India. In this paper an attempt has been made
to analyze the performance of equity based mutual funds. A total of 15 schemes offered by 2
private sector companies and 2 public sector companies, have been studied over the period April
1999 to April 2013 (15years). The analysis has been made using the risk-return relationship and
Capital Asset Pricing model (CAPM). (Dr. N.K, 2013, pp. 289-295)
R Singal, A Garg and Dr. S Singla, Performance Appraisal of Growth Mutual Fund, International
Journal of Latest Trends in Engineering and Technology, Vol. 2 Issue 3 May 2013, pp. 355-365.
The paper examines the performance of 25 Growth Mutual Fund Schemes. Over the time period
6
Jan 2004 to Dec 2008. For this purpose, three techniques are used (I) Beta (II) Sharpe Ratio (III)
Treynor Ratio. Rank is given according to result drawn from this scheme and comparison is also
made between results drawn from different schemes and normally the different are insignificant.
(R Single, 2013, pp. 355-365)
Dr. R Narayanasamy and V. Rathnamani, Performance Evaluation of Equity Mutual Funds (on
Selected Equity large Cap Funds), International Journal of business and Management Inventions,
Vol. 2, Issue 4, 2013, pp. 18-24 In India, capital market provides various investment avenues to
the investors. The findings of this research study will be help full to investors for their future
investment decisions. The mutual fund guarantees the minimum risks and maximum return to the
investor. This study mainly focused on the performance of selected equity large cap mutual fund
schemes in terms of risk- return relationship the various statistical tools used for calculated the
performance of the selected open-ended equity mutual fund schemes. (Rathnmani, 2013, pp. 18-
24)
Jafri Arshad Hasan, The Performance Evaluation of Indian Mutual Fund Industry past, Present and
Future, International Journal of Engineering and Management Sciences, Vol. 4(2), 2013, pp. 223-
226. He has studied The Performance Evaluation of Indian Mutual Fund Industry past, Present and
Future. This article will discuss the past performance of the Indian mutual fund industry and the
pace of growth it achieved after being succumbed to regulatory changes by SEBI, international
factors and its non-performance that affected the industry and its sentiments. It will also analyze
the future implications of the current changes that are being implemented by the regulator. (Hasan,
2013, pp. 223-226)
Dr. Mamta Shah, Marketing Practices of Mutual Funds, Asian Journal of Research in Marketing,
Vol. 1, Issue 6, Dec,2012, pp. 12-29. Development of an economy necessarily depends upon its
financial system and the rate of new capital formation which can be achieved by mobilizing
savings and adopting an investment pattern, be its self-financing (i.e. direct or indirect) where
financial intermediaries like banks, insurance and other financial companies come in the picture
and mediate between savers and borrowers of funds. In the same way there are different types of
investors and each category of investors differs in its objectives and hence it is imperative for
investment managers to choose an appropriate investment policy for the group they are dealing
7
with, further managing the investment is a dynamic and an ongoing process. (Shah, 2012, pp. 12-
29)
Abhishek Kumar, Trend in Behavioral Finance and Asset Mobilization in Mutual Fund Industry
of India, International Journal of Scientific and Research Publications, Vol. 2, Issue 10, Oct 2012.
They have studied Trend in Behavioral Finance and Asset Mobilization in Mutual Fund Industry
of India. This paper tries to analyze some of the key issues noted below: 1. To understand the
growth and the potential of Mutual Fund industry and analyze its success. 2. An exhaustive cross
performance study of Mutual fund industry by analyzing around 1025 mutual fund schemes of
India. 3. Performance analyses of various mutual fund schemes and its contributions to assets
management during the study period (2002-2009). 4. Insight about the performance of the mutual
fund under short term and long-term period and 5. Investor’s behavior in allocating their
investments among various assets available in the market compared to Mutual funds in the
changing economic Scenario. (Kumar A. , 2012)
Ms. A Patro and Prof. A. Kanagaraj, Exploring the Herding Behaviour in Indian Mutual Fund
Industry, Asian Journal of Finance and Accounting, Vol. 4, no. 1, Jun,2012, pp. 189-204. The
study analyzes the trading activity of Indian mutual funds and investigates whether Indian mutual
fund managers are engaged in herding behaviour. Results are compared with previous studies in
mature as well as developing markets to determine the level of maturity of the Indian capital
market. Measure of herding developed by Lakonishok et al. (1992) has been used. (kanagarai,
2012, pp. 189-204)
Ms. K. HemaDivya, A Comparative study on Evaluation of Selected Mutual Funds in India,

International Journal for Research in Applied Science and Engineering Technology (IJRASET),
Vol. 6, Issue 5, Apr, 2012, pp. 580-584. Mutual Funds industry has grown up by leaps & bounds,
particularly during the last 2 decades of the 20th century. Proper assessment of fund performance
would facilitate the peer comparison among investment managers, help average investors
successfully identify skilled managers. Further the growing competition in the market forces the
fund managers to work hard to satisfy investors & management. Therefore, regular performance
evaluation of mutual funds is essential for investors and fund managers also. The present study is
8
confined to evaluate the performance of mutual funds on the basis of yearly returns compared with
BSE Indices. (HemaDivya, 2012, pp. 580-584)
Roy, S. & Ghosh, S.K., A Comparative Study of Mutual Fund Performance during Recession in
India, International Journal for Financial Management, Vol. 2Issue 2, Apr 2012, pp. 53-64.
Evaluated the performance of the open ended gilt mutual fund schemes for the period of 2008-
2009. They examined the risk adjusted performance, market timing performance, selectivity
performance and found that the selected mutual fund schemes were not performed well. Further,
performance of the Indian private sector mutual fund companies was better than the public sector.
Overall, it was concluded that the performance of selected open-ended gilt schemes was not
performed satisfactory during the recession period. (K, 2012, pp. 53-64)
Dr. R Singh, Dr. A Singh and Dr. H. Ramananda Singh, Positioning of Mutual Funds among Small
Town and Sub-Urban Investors. International Journal of Research in Commerce, IT and
Management, Aug, 2011. In the recent past the significant proportion of the investment of the
urban investor is being attracted by the mutual funds. This has led to the saturation of the market
in the urban areas. In order to increase their investor base, the mutual fund companies are exploring
the opportunities in the small towns and sub-urban areas. But marketing the mutual funds in these
areas requires the positioning of the products in the minds of the investors in a different way. The
product has to be acceptable to the investors, it should be affordable to the investors, it should be
made available to them and at the same time the investors should be aware of it. The present paper
deals with all these issues. It measures the degree of influence on acceptability, affordability,
availability and awareness among the small town and sub-urban investors on their investment
decisions. (Dr. R Singh, 2011)
D Sharma, P Loothra and A Sharma, Comparative Study of Selected Equity diversified Mutual
Fund Schemes, international journal of Computer science and Management studies, Vol. 11, Issue
01, May 2011, pp. 2231-5268. The present investigation is aimed to examine the performance of
safest investment instrument in the security market in the eyes of investors i.e., mutual funds by
specially focusing on equity-diversified schemes. Eight mutual fund schemes have been selected
for this purpose. The examination is achieved by assessing various financial tests like Sharpe
Ratio, Standard Deviation and Alpha. (D Sharma, 2011, pp. 2231-5268)
9
Dr. A Khurana and K Panjwani, Hybrid Mutual Funds: An Analysis, Sri Krishna International
Research and Educational consortium, Vol. 1, Issue 2, Nov, 2010. Mutual fund returns can be
compared using Arithmetic mean & Compounded Annual Growth Rate. Risk can be analyzed by
finding out Standard Deviation, Beta while performance analysis is based on Risk-Return
adjustment. Key ratios like Sharpe ratio and Treynor ratio are used for Risk-Return analysis. Funds
are compared with a benchmark, industry average, and analysis of volatility and return per unit to
find out how well they are performing with respect to the market Value at Risk analysis can be
done to find out the maximum possible losses in a month given the investor had made an
investment in that month. Based on the quantitative study conducted company a fund is chosen as
the best fund in the Balance fund growth schemes. (Panjwani, 2010)
B Ramasamy and MCH Yeung, Evaluating Mutual Funds in an Emerging market: Factors that
matters to Financial Advisors - The International Journal of Bank, Mar-2003, pp. 122-136. This
growth in the mutual fund industry in this emerging market has resulted in the increasing number
of investment companies offering a range of funds. Although the number of funds is small
compared to established market like US, the growth is high. This paper is also distinct from the
other research papers in that it concentrates on emerging market of mutual funds. The purpose of
this research paper is to identify the attributes which financial adviser consider relatively important
in mutual fund. This paper seeks to identify the factors that are considered important when
selecting a mutual fund among financial advisers in an emerging market. (Yeung, 2003, pp. 122-
136)
10
CHEPTER – 2
RESEARCH METHODOLOGY
11
Research Methodology
For a quantitative research we are using only secondary data to identify the Performance evaluation
and Analysis of Mutual Fund. Secondary data refers to data that is collected by someone other than
the user. The survey will be conducted on the basis of Stratified Sampling. According to the
researcher the Stratified sampling is adopted for selecting the sample size. The study will be
conducted residing in India. There are no such respondents in this research because it is based on
secondary data.
2.1 Research Problem
Performance Evaluation and analysis of Mutual Funds in Different situations. investors

are mostly long-term investors and they think about long term return. in a recent day a
world recession is going on and before that what are the criteria to invest in any mutual
fund and now what kind of criteria investors may be consider.
2.2 Objective of Study
1. To study or examine the behaviour of the investors of Mutual Fund under the impact of
recession.
2. To study the investment / saving pattern of various categories of investors
3. To study the performance of various demographic factors on mutual fund investment.
4. To know the most preferred mutual fund Investment Avenue or company among the
investors.
5. To study the risk behaviour of investor in Mutual fund.
6. To analyses the performance of Mutual fund in the investment industry.
7. To study the awareness of various mutual fund investment companies among investors.
12
2.3 Research Gap
Going through with all literature review, a most of the paper were included the analysis on
the investor’s perspective and most of the researcher had only covered some time limit and
some of the most popular companies. but my research is to connect both investors and
mutual fund companies and analyze both together and my research is affiliate with Indian
region.
2.4 Scope of Study
The study is purely based on the purpose to analyze the performance evaluation of mutual
funds and mutual fund industries. The research is conducted on the Auto listed company
on NSE. The time period selected for the study is 5 years period from 2015 to till now. The
study covers the area such as risk, return, investor’s attitude etc. and their impact on the
performance of the company. The study focuses on the quantitative factors that directly
affect the company.
13
2.5 Summary of Literature review
Table 2.5.1 Summary of LR
No. Author Description Conclusion

1 V Single and Dr. R Factor Affecting in Mutual fund is lower risk investment
Manrai, (July-2018) Investing in Mutual Funds and convenience and it reduces taxes.
They are economical, sociological
and psychological factors which
control investment decision. The
model explained 55.6% variance in
factor affecting in mutual fund.
2 Dr. S.P. Performance Evaluation of To study the performance evaluation
Dhandayuthapani, Selected Diversifying of of selected open-ended schemes in
M.K. Sindhu, (May- Mutual Funds Equity terms of risk and return relationship
2018) Schemes
3 Dr. Yogesh Kumar Emerging scenario of Study is based on selected equity
Mehta, (Feb-2018) mutual fund in India: An funds of public sector and private
Analytical study on Tax sector mutual fund. It is also found
Fuds that MFs did not prefer debt segment.
4 Dr. S. Bansal, D. Garg Performance Evaluation of They have studied Impact of Sharpe
and S. K Saini(2018) Indian Equity Mutual Ratio & Treynor’s Ratio on Selected
Fund Scheme Mutual Fund Schemes
5 R Sharma and N. K. Growth of Mutual Fund Structure of mutual fund, comparison
Pandya, (June-2017) Industry in India between investments in mutual fund
and other investment options and
calculation of NAV etc.
6 Prof. V. Vanaja and Performance Evaluation of This study of performance evaluation
Dr. R. Karrupasamy, Public and Private Sector would help the investors to choose
(July-2016) in Mutual Fund in India the best schemes available and will
also help the AUM’s in better
portfolio construction and can rectify
the problems of underperforming
schemes
7 R Sharma and N. K. Investors Perception This study has tried to understand the
Pandya, (Jan-Feb- towards Mutual Fund financial behavior of mutual fund
2016) Investments investors in connection with the
scheme preference and selection. An
important element in the success of a
14
marketing strategy is the ability to
fulfill investors expectation
8 Dr. E. Priyadarshini, Development and In this paper, they had evaluated on
(April-2015) Performance Evaluation of the basis of three novel prediction
Three Novel Prediction which are Net Asset Values,
Models for Mutual Fund Artificial Neural Network
NAV Prediction MAPE, RMSE,
9 Wadhwa, B. Kaur, D. Investors Attitude towards They studied the factors responsible
& Vashist, A., (Jan- Mutual Funds’ for the selection of mutual fund as an
Mar-2015) Investments: A Study of investment option and also analyzed
Delhi-NCR Region the impact of various demographic
variables on investors attitude
towards mutual fund by taking three
hundred respondents from Delhi
region
10 Dr. Nishi Sharma, Perception of Investors To investigate the reasons
(Aug-2014) towards investment in responsible for lesser recognition of
Mutual Funds with special mutual fund as a prime investment
reference to MIP (Monthly option. It examines the investor’s
Income Plan) Funds perception with reference to distinct
features provided by mutual fund
companies to attract them for
investing in specific funds/schemes
11 C.Srinivas Yadav and Performance of Selected The study evaluates performance of
Hemanth N C, (Feb- Equity Growth Mutual selected growth equity funds in India,
2014) Funds in India: An carried out using portfolio
Empirical Study performance evaluation techniques
such as Sharpe and Treynor measure
12 Dr. K. Veeraiah and Research on Comparative This study analyzes the performance
Dr. A. Kishore Performance Analysis of of Indian owned mutual funds and
Kumar, (Jan-2014) Select Indian Mutual Fund compares their performance
Schemes
13 D Jani and Dr. R Jain, Role of Mutual Funds in This paper attempts to identify, the
(Dec-2013) Indian Financial System as relationship between AUM
a Key Resource Mobiliser mobilized by mutual fund companies
and GDP growth of the India
14 Rajiv G. Sharma, Comparative Study on The study at first tests whether there
(Aug-2013) Public and Private Sector is any relation between demographic
Mutual Funds in India profile of the investor and selection
of mutual fund alternative from
15
among public sector and private
sector
15 Dr. N. K. Sathya Pal Analysis of the Risk and In this paper an attempt has been
Sharma and Return Relationship of made to analyze the performance of
Ravikumar. R, (Aug- Equity Based Mutual Fund equity based mutual funds
2013) in India
16 R Singal, A Garg and Performance Appraisal of The paper examines the performance
Dr. S Singla, (May- Growth Mutual Fund of 25 Growth Mutual Fund Schemes.
2013) Over the time period Jan 2004 to Dec
2008
17 Dr. R Narayanasamy Performance Evaluation of This study mainly focused on the
and V. Rathnamani, Equity Mutual Funds (on performance of selected equity large
(2013) Selected Equity large Cap cap mutual fund schemes in terms of
Funds) risk- return relationship the various
statistical tools used for calculated
the performance of the selected open-
ended equity mutual fund schemes
18 Jafri Arshad Hasan, Performance Evaluation of This article will discuss the past
(2013) Indian Mutual Fund performance of the Indian mutual
Industry past, Present and fund industry and the pace of growth
Future it achieved after being succumbed to
regulatory changes by SEBI,
international factors and its non-
performance that affected the
industry and its sentiments
19 Dr. Mamta Shah, Marketing Practices of financial intermediaries like banks,
(Dec-2012) Mutual Funds insurance and other financial
companies come in the picture and
mediate between savers and
borrowers of funds
20 Abhishek Kumar, Trend in Behavioral To understand the growth and the
(Oct-2012) Finance and Asset potential of Mutual Fund industry
Mobilization in Mutual An exhaustive cross performance
Fund Industry of India study of Mutual fund industry
Performance analyses of various
mutual fund schemes and its
contributions to assets management
21 Ms. A Patro and Prof. Exploring the Herding The study analyzes the trading
A. Kanagaraj, (Jun- Behaviour in Indian activity of Indian mutual funds and
2012) Mutual Fund Industry investigates whether Indian mutual
16
fund managers are engaged in
herding behaviour
22 Ms. K. HemaDivya, Comparative study on The present study is confined to
(Apr-2012) Evaluation of Selected evaluate the performance of mutual
Mutual Funds in India funds on the basis of yearly returns
compared with BSE Indices.
23 Roy, S. & Ghosh, Comparative Study of They examined the risk adjusted
S.K., (Apr-2012) Mutual Fund Performance performance, market timing
during Recession in India performance, selectivity performance
and found that the selected mutual
fund schemes were not performed
well
24 Dr. R Singh, Dr. A Positioning of Mutual In the recent past the significant
Singh and Dr. H. Funds among Small Town proportion of the investment of the
Ramananda Singh, and Sub-Urban Investors urban investor is being attracted by
(Aug-2011) the mutual funds. This has led to the
saturation of the market in the urban
areas
25 D Sharma, P Loothra Comparative Study of The examination is achieved by
and A Sharma, (May- Selected Equity diversified assessing various financial tests like
2011) Mutual Fund Schemes Sharpe Ratio, Standard Deviation
and Alpha
26 Dr. A Khurana and K Hybrid Mutual Funds: An Funds are compared with a
Panjwani, (Nov- Analysis, benchmark, industry average, and
2010) analysis of volatility and return per
unit to find out how well they are
performing
27 B Ramasamy and Evaluating Mutual Funds The purpose of this research paper is
MCH Yeung, (Mar- in an Emerging market: to identify the attributes which
2003) Factors that matters to financial adviser consider relatively
Financial Advisors important in mutual fund. This paper
seeks to identify the factors that are
considered important when selecting
a mutual fund among financial
advisers in an emerging market.
17
2.6 Research design
Fundamentally, present research can broadly be divided into two parts; the first part
consisting of an investigation of the impact of recession on the performance of various
categories of mutual funds in India and the second part including the second and third
objectives namely; to study the investment / saving pattern of various categories of
investors and to examine the behavior of the investors of Mutual Fund under the impact of
recession. Thus, first part involves usage of facts and information already available and an
analysis of this data, therefore this is an analytical research and accordingly an analytical
research design was planned. For the second part of the study (comprising of second and
third objectives) an exploratory design was developed since this involves gaining insights
and understanding the saving patterns of investors and their behavior pertaining to mutual
fund investment.
2.7 Research Tools and Techniques
The word data means any raw information, which is either quantitative or qualitative in
nature, which is of practical or theoretical use. The task of data collection begins after a
research problem has been defined and research design chalked out. While deciding about
the method of data collection, the researcher should keep in mind that there are two types
of data primary and secondary. We have used only secondary data for our research.
The present study is purely based on secondary data and information has been collected
from Annual reports published by the company. The companies are listed on NSE which
provides the useful information for the study. Also, company websites like, Money control,
published articles, literature review proved to be the major source of secondary data.
The present study is conducted on the data of some companies. As the data is secondary,
to analyze the financial performance in terms of Risk, Return, Investors behavior etc. as a
tool have been used and peer analysis is done. Statistical tools like mean, standard
deviation, correlation, ANOVA have also been used.
18
Sample Design:
• Population
Listed Company in Auto NSC
• Sample Method
The sampling technique used for the purpose of study was Strata Sampling is used.
• Research Instrument
The study carried on basis of secondary data.
• Software used
For this research mostly, we used excel.
19
2.8 Hypothesis
Ho: There is no significance difference between investment pattern & economic scenario
H1: There is a significance difference between investment pattern and economic scenario
Ho: There is no significance difference between risk and return and investors
H1: There is a significance difference between risk and return and investors
Ho: There is no significance difference between age and investment pattern

H1: There is a significance difference between age and investment pattern
2.9 Benefits
1. From the research we came to knew about awareness about various types of MF among
investors.
2. Also, how the influence of various demographic factors, risk and return plays on MF
investment preferences.
3. We can also know about the most preferred MF Investment Avenue among the investors.
2.10 Limitations
1. The sample size is restricted to NSC listed companies.

2. The study is limited to India.
3. Scope of the study is limited to selected MF avenues only.
4. Investment preferences differ among many different demographic factors, risk return,
behavior etc.
5. Due to reluctance of secondary data to get complete information; it could lead to affect the
validity of investments.
6. Considering above factors generalization of results may require further validation.
20
CHEPTER – 3
INDUSTRY OVERVIEW
21
3.1 Introduction to Industry
The term “mutual” signifies a mechanism wherein the benefits of investment accrue to all the
investors in proportion to their investment. A mutual fund is a financial intermediary which acts
as an instrument of investment. It is a financial institution through which the pooled investible
funds of investors are invested in a well-diversified portfolio of securities thus spreading and
reducing the risk and ensuring a good return (dividend or capital gains or both) to the investors.
Small and medium investors who are unable to participate in the capital market, can access the
stock market through the medium of mutual funds under the direction of an investment manager.
Investors subscribe to units of a mutual fund just as shareholders subscribe to shares of a company.
Each unit of a mutual fund represents a unit holder’s proportionate ownership of the fund’s
portfolio holdings. The investors of mutual funds are known as unit holders. The companies that
operate the mutual funds are known as Asset Management Companies (AMCs) or Investment
Managers. An AMC may float more than one fund (also called schemes), each with an objective
and investment mandate of its own.
The terms mutual fund, fund or scheme are often used interchangeably. According to Frank Reilly,
“Mutual funds are financial intermediaries, which bring a wide variety of securities within the
reach of the most modest of investors”.
According to Quarterly Market Guide to Merrill Lynch, “Mutual Fund is an investment company
that pools the money of many individuals and invests in a portfolio of stocks, bonds and /or cash
equivalents, actively managed by a portfolio manager who buys and sells securities in an attempt
to take an advantage of current or expected market conditions”.
According to Securities and Exchange Board of India Regulations, 1996 a mutual fund means “a
fund established in the form of trust to raise money through the sale of units to the public or a
section of the public under one or more schemes for investing in securities, including money
market instruments”.
22
3.2 Growth of Mutual Fund Industry
Growth of Mutual Funds in India is divided into six different phases depending on the structural
changes which have taken place in the mutual fund industry. Now, we will see time span of each
phase and development in that era.
Phase 1: Establishment and Growth of UTI (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 it continued to operate under the regulatory control of the RBI until the
two were delinked in 1978 and the entire control was transferred in the hands of Industrial
Development Bank of India (IDBI). UTI launched its first scheme in 1964 named as Unit Scheme
1964 (US-64) which attracted the largest number of investors in any single investment scheme
over the years. Starting from this scheme, UTI enjoyed complete monopoly and became the biggest
mutual fund of the country for these 23 long years up to 1964-87.
Phase 2: Entry of Public Sector Funds (1987-1993)
In 1987, Government of India permitted the Commercial Banks in the public sector to form
subsidiaries that would perform the functions of mutual funds through the amendment of Banking
Regulation Act, 1949 which earmarked as an end of an era of UTI as the sole participant in the
mutual fund sector. A number of Commercial Banks in the public sector and insurance companies
had launch mutual funds to mobilize the savings of the small investors. With the entry of public
sector funds, there was a tremendous growth in the size of mutual fund industry with net resources
mobilization.
Phase 3: Emergence of Private Sector Funds (1993-1996)
Ever since, non-UTI funds came into existence in 1987, the exclusion of private sector was being
widely criticized. As such, the mutual fund industry appeared poised for a phenomenal growth.
However, at this juncture, the shocking revelation of the 1992 securities scam shook the investor
confidence and forced SEBI to put all the forthcoming schemes of mutual funds on hold. 7
Unexpectedly, the scam did not dissuade the government from throwing open this industry to the
23
private sector. By December, 1993, thirteen companies in the private sector were permitted to
launch mutual 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. In 1993 the first
Mutual Fund regulation came into being under which all Mutual Funds, except UTI was to be
registered. The Kothari Pioneer (now merged with Franklin Templeton) was the first private sector
Mutual Fund registered in July 1993.
Phase 4: Growth and SEBI Regulation (1996-1999)
The Mutual Fund industry witnessed robust growth and strict regulations from SEBI after 1996.
The mobilization of funds and the number of players operating in the industry reached new heights
as investors started showing more interest in Mutual Funds. Investors’ interests were safe guarded
by SEBI and the government offered tax benefit to the investors. In order to encourage them, SEBI
(Mutual Funds) Regulations 1996 was introduced by SEBI that set uniform standards. The union
budget in 1999 exempted all dividend incomes in the hands of investors from income tax. As part
of these measures, SEBI issued standard offer documents and memoranda containing key
information. The guidelines issued by RBI for Money Market Funds were incorporated in the SEBI
Regulations. Various investor awareness programmers were launched during this phase both by
SEBI and Association of Mutual Fund in India (AMFI).
Phase 5: Emergence of a Large & Uniform Industry (1999- 2004)
This Phase was marked by very rapid growth of the Indian mutual fund industry & the market
share of private sector mutual funds increased significantly crossing Rs.1.00 lakh crores. The tax
break offered to mutual funds in 1999 created arbitrage opportunities for a number of institutional
players. During this Phase, there was bifurcation of UTI in SUUTI (Specified Undertaking of the
UTI) which was functioning under an administrator and under the rules framed by the Government
of India and UTI Mutual Fund Ltd. sponsored by SBI.
Phase 6: Consolidation and Growth (2004 onward…)
In February 2003, the Unit Trust of India was split into two separate entities, following the repeal
of the original UTI Act of 1963. The two separated entities were the UTI Mutual Fund (which is
24
under the SEBI regulations for MFs) and the Specified Undertaking of the Unit Trust of India
(SUUTI). Following this bifurcation of the former UTI and occurrence numerous mergers among
different private sector entities, the mutual fund industry took a step towards the phase of
consolidation.
After the global economic recession of 2009, the financial markets across the globe were at an all-
time low and Indian market was no exception to it. Majority of investors who had put in their
money during the peak time of the market had suffered great losses. This severely shook the faith
of investors in the MF products. The Indian Mutual Fund industry struggled to recover from these
hardships and remodel itself over the next two years. The situation toughened up more with SEBI
abolishing the entry load and the lasting repercussions of the global economic crisis. This scenario
is evident from the sluggish rise in the overall AUM of the Indian MF industry.
25
3.3 Porter Five Force Model of Mutual Fund Industry
A model was put forward by

Michael. E. Porter in an article in
the Harvard Business Review in
1979. This model, known as Porter's
Five Forces Model is a strategic
management tool that helps
determine the competitive
landscape of an industry. Each of
the five forces mentioned in the
model and their strengths help
strategic planners understand the
inherent profit potential within an
industry. The strengths of these
forces vary across the industry to Figure
Figure3.3.1: PorterFive
1: Porter FiveForces
Forces
industry, which means that every industry is different regarding the profitability and attractiveness.
The structure of an industry, even though it is stable, can change over time. These Porter’s five
forces are as follows:
1. Threat of New Entrants

2. Bargaining Power of Suppliers
3. Bargaining Power of Buyers
4. Threat of Substitute Products or Services
5. Rivalry Among Existing Firms
This section analyses Note on the Mutual Fund Industry in India using each of the five forces of
Porter’s model.
26
1. Threat of New Entrants:
The economies of scale are fairly difficult to achieve in the industry in which Note on the
Mutual Fund Industry in India operates. This makes it easier for those producing large
capacitates to have a cost advantage. It also makes production costlier for new entrants.
This makes the threats of new entrants a weaker force.
The product differentiation is strong within the industry, where firms in the industry sell
differentiated products rather a standardized product. Customers also look for
differentiated products. There is a strong emphasis on advertising and customer services as
well. All of these factors make the threat of new entrants a weak force within this industry.
2. Bargaining Power of Suppliers:
The number of suppliers in the industry in which Note on the Mutual Fund Industry in
India operates is a lot compared to the buyers. This means that the suppliers have less
control over prices and this makes the bargaining power of suppliers a weak force.
The product that these suppliers provide are fairly standardized, less differentiated and have
low switching costs. This makes it easier for buyers like Note on the Mutual Fund Industry
in India to switch suppliers. This makes the bargaining power of suppliers a weaker force.
3. Bargaining Power of Buyers:
The number of suppliers in the industry in which Note on the Mutual Fund Industry in
India operates is a lot more than the number of firms producing the products. This means
that the buyers have a few firms to choose from, and therefore, do not have much control
over prices. This makes the bargaining power of buyers a weaker force within the industry.
The product differentiation within the industry is high, which means that the buyers are not
able to find alternative firms producing a particular product. This difficulty in switching
makes the bargaining power of buyers a weaker force within the industry.
4. Threat of Substitute Products:
27
There are very few substitutes available for the products that are produced in the industry
in which Note on the Mutual Fund Industry in India operates. The very few substitutes that
are available are also produced by low profit earning industries. This means that there is
no ceiling on the maximum profit that firms can earn in the industry in which Note on the
Mutual Fund Industry in India operates. All of these factors make the threat of substitute
products a weaker force within the industry.
The very few substitutes available are of high quality but are way more expensive.
Comparatively, firms producing within the industry in which Note on the Mutual Fund
Industry in India operates sell at a lower price than substitutes, with adequate quality. This
means that buyers are less likely to switch to substitute products. This means that the threat
of substitute products is weak within the industry.
5. Rivalry Among Existing Firms:
The number of competitors in the industry in which Note on the Mutual Fund Industry in
India operates are very few. Most of these are also large in size. This means that firms in
the industry will not make moves without being unnoticed. This makes the rivalry among
existing firms a weaker force within the industry.
The very few competitors have a large market share. This means that these will engage in
competitive actions to gain position and become market leaders. This makes the rivalry
among existing firms a stronger force within the industry.
28
3.4 Key players of the industry
A mutual fund is set up either in the form of a trust or an investment company. The trust is
established by the Asset Management Company (AMC). The trustee holds the property of the trust
for the benefit of its unit holders. Whereas, under the investment company structure, the mutual
fund is established as a public listed company.
The AMC, as sponsor of the mutual fund, appoints its board of directors to manage its affairs, and
a custodian for holding all the assets of the investment company. An AMC is licensed by the SEBI
and is eligible to operate the mutual fund and manage its investments.
Figure 2: MF Industry
An Asset Management Company is a Non-Banking Finance Company licensed by the SEBI for
the management of mutual fund and for the benefit of the unit holders.
A trustee in the case of Mutual funds is a holding service who has administrative power for
managing the money, property or assets used in mutual funds. The trustee can be an individual
person, member of the board of directors, a company or a bank appointed with the approval of the
SEBI.
29
CHEPTER – 4
COMPANY OVERVIEW
30
4.1 Introduction to Mutual Fund
Investment is most significant key to use the surplus support of an entity for the purpose of earning
supplementary income or capital appreciation or together. The investor has to consider various
factors while making an investment decision these are as follows: risk associated with the
investment, tax benefits, liquidity, and marketability etc.
A mutual fund is a pool of money collected from many small investors which is professionally
managed by the portfolio managers. It is a type of collective investment scheme and invests it
various securities such as in stocks, bonds and short-term money market instruments. The
performance of the fund depends upon the economic condition of the country and the world as a
whole.
The performance of the fund will be evaluated in terms of rate of return, Treynor, Sharpe and
Jensen’s measure of performance. Mutual funds are considered as one of the best attractive
investment options available to small investors as compare to others alternatives because it is
managed by professional portfolio managers. Mutual Fund is a trust that pools money from
investors by selling shares of the fund like any other type of company that sells stock to the public.
The raised money is used in different securities like stocks, bonds, money markets & commodities.
Each mutual fund has common financial goal and the money is invested in accordance with the
objective. Fund is managed by a professional fund manager, who is responsible for implementing
a fund's investing strategy and managing its portfolio trading activities.
Each investor in the mutual fund participates proportionally (based upon the number of shares
owned) in the gain or loss of the fund. Any investor can invest minimum amount that is affordable
and diversify their portfolio in different sectors depending upon their interests and risks.
The two main classes of mutual funds are as following;
1) Open-Ended - This scheme allows investors to get or vend units at any situation in time.
This does not have a fixed maturity period.
• Debt/ Income - In a debt/income scheme, a major part of the investable fund is
channelized towards debentures, government securities, and other debt instruments.
31
Even 17 though capital appreciation is small, this is a fairly short risk-low return
investment avenue which is ideal for investors seeing a steady income.
• Money Market/ Liquid - This is ideal for investors looking to utilize their surplus
funds in short term instruments while awaiting better options. These schemes spend in
short-term liability instruments and try to find to provide logical returns for the
investors.
• Growth - Equities are a popular mutual fund category amongst retail investors. While
it might be a high-risk venture in the short term, investors can wait for capital
appreciation in the long time. If you are at your prime earning stage and looking for
long-term benefits, growth schemes could be an ideal investment.
• Balanced - This scheme allows investors to enjoy growth and income at regular
intervals. Funds are invested in both equities and fixed income securities; the
proportion is pre-determined and disclosed in the scheme related offer document. These
are ideal for the cautiously aggressive investors.
2) Closed-Ended - This kind of scheme have a fixed middle age period and investors can use
just through the opening period well-known as the New Issue time.
• Capital Protection - The primary objective of this scheme is to safeguard the principal
amount while trying to deliver reasonable returns. These supply in high-class fixed
profits securities with trivial coverage to equities and grown-up along with the maturity
time of the scheme.
• Fixed Maturity Plans (FMPs) - FMPs, as the name suggests, are mutual fund schemes
with a defined maturity period. These schemes usually include of debt instruments
which grown-up in line with the ripeness of the scheme, thus earning from side to side
the interest factor (also called coupons) of the securities in the portfolio. FMPs are
normally passively managed, i.e. there is no active trading of debt instruments in the
portfolio. The expenses which are charged to the scheme are hence, generally lower
than actively managed schemes.
• Interval - working as a mixture of open and closed ended schemes, it allows investors
to buy and sell their units at pre-defined intervals.
32
4.2 SWOT Analysis of Selected Companies
SWOT analysis of the brand/company with its strengths, weaknesses, opportunities & threats. In
SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and
threats are the external factors. For a conducting a research on Mutual fund we had selected some
of the well-known companies in the MF industry which are as under…
1. Canara Robeco Equity Hybrid Fund

2. HDFC Hybrid Equity Fund
3. SBI Equity Hybrid Fund
4. IDFC hybrid equity fund
5. Aditya Birla sun life equity hybrid 95 fund
6. L & T hybrid equity fund
7. Tata hybrid equity fund
8. UTI - hybrid equity fund
9. LIC mf equity hybrid fund
10. Kotak debt hybrid
4.2.1 Canara Robeco Equity Hybrid Fund:

Canara Robeco Mutual Fund is the second oldest Mutual Fund in India, established in
December 1987 as Canbank Mutual Fund. Subsequently, in 2007, Canara Bank partnered
with Robeco (now a part of ORIX Corporation, Japan) and the mutual fund was renamed
as Canara Robeco Mutual Fund. Since then, it has consistently been one of the fastest
growing mutual funds in India in terms of AuM. Our solutions offer a range of investment
options, including diversified and thematic equity schemes, hybrid and monthly income
funds and a wide range of debt and treasury products.
Strength:
This helps in understanding the core areas of the business where it beats the competition and
has the competitive advantage in the market. Strengths are generally the core competency of
the business.
33
• The banking style: In comparison to other public banks in India Canara bank articulates
the best practices and creates a good banking experience for the customers which leads to
the better brand image in the minds of the customers.
• Employment Generation: The banks employ more than 40000 people in India and hence
generates employment for the huge amount of people.
Weaknesses:
This is the pain area of the organization where it does not have the resources or skills. Business
has to work upon these areas so that they are not left behind from the competition. Though
there will be some or the other weakness but it should not be an area which takes the business
out of the market.
• Marketing is Poor: Being a public bank in India the marketing focus is very less and hence
this leads to low publicity in the market despite offering good banking facilities and
experience to the customers. Bank does not have a marketing department which focuses on
increasing the awareness of the bank in the market.
• Customer Service is Poor: The banking industry in India is very competitive and
customer service is one thing which uniquely differentiates the bank. Canara bank has not
been able to deliver a good customer service. Customers are generally not happy with the
way staff handles the queries and imparts services at the banks. Also, the online banking
facilities are not very well developed.
Opportunities:
This helps in understanding what other things a business can do with the current skills and
resources. It helps the business to know the areas where it can expand and take a lead in order
to diversify the business and expand the customer base.
• Rural Banking: The bank can explore more aspects of rural banking as the majority of
Indians are living in the rural areas and hence by fulfilling their banking needs the bank
can grow its revenue.
34
• Social Banking: In the era of social media the banks are adopting social channels and
hence catering to the needs of customers using an additional challenge and saving their
time to visit physical banks.
Threats:
This analysis helps in understanding what are the areas which can impact the business in future
or right away. So, business has to prepare itself to handle the threats in the market landscape.
Competition or increasing number of players in the market with same value proposition is a
threat to business as it directly lowers down the customer base and revenue
• Competition is Increasing from Private Sector Banks: Private sector banks are coming
up with innovative investment schemes and hence taking the share of retail customers.
• Changing Policies: Banking policies are subject to the rules and regulation of RBI and
hence any changes from RBI has a direct impact on the operations of the bank.
4.2.2 HDFC Hybrid Equity Fund:
SWOT analysis is a vital strategic planning tool that can be used by HDFC Bank Limited
managers to do a situational analysis of the firm. It is an important technique to map out the
present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) HDFC Bank Limited is
facing in its current business environment.
Strength:
• Strong distribution network: Over the years HDFC Bank Limited has built a reliable
distribution network that can reach majority of its potential market.
• Strong Free Cash Flow: HDFC Bank Limited has strong free cash flows that provide
resources in the hand of the company to expand into new projects.
Weaknesses:
35
• Limited success outside core business – Even though HDFC Bank Limited is one of the
leading organizations in its industry it has faced challenges in moving to other product
segments with its present culture.
• Days inventory is high compare to the competitors: making the company raise more
capital to invest in the channel. This can impact the long-term growth of HDFC Bank
Limited
Opportunities:
• Organization’s core competencies can be a success in similar others products field. A

comparative example could be - GE healthcare research helped it in developing better Oil
drilling machines.
• The new taxation policy can significantly impact the way of doing business and can open
new opportunity for established players such as HDFC Bank Limited to increase its
profitability.
Threats:
• The demand of the highly profitable products is seasonal in nature and any unlikely event
during the peak season may impact the profitability of the company in short to medium
term.
• New technologies developed by the competitor or market disruptor could be a serious threat
to the industry in medium to long term future.
4.2.3 SBI Equity Hybrid Fund:

Strength:
• SBI Fund Management Ltd. is a non-banking subsidiary of SBI
• SB1 Mutual Fund offers returns. safety and liquidity to its Investors.
• SB1 Fund Management Ltd acts as the Asset-Management Company (AMC) of SBI
Mutual Fund.
36
• Brand name market leadership, wide network of branches, technology, skills and high
reputation of SBI creates confidence among investors.
Weaknesses:
• Absence of qualified sales force when compared with UTI and private sector mutual funds.
• Redressal mechanism of SBI MF for Investors grievances is not satisfactory.
Opportunities:
• In recent times, the interest rates on bank deposits, PPF and NSC have been declining. The
household savers are looking for alternative avenues, which could bring higher return
Investor education is the key to the growth and survival of SBI Mutual Funds.
• India middle class population growth will be much faster than in previous years If NIII
require huge Investment opportunities t:o tap the surplus savings of the class.
Threats:
• Competition from private sector and foreign mutual funds.

• Political instability leads to a threat of capital market and better performance of mutual
funds.
• Changing economic situation and privatization of big public enterprises effect the fund
mobilization of mutual funds.
4.2.4 IDFC hybrid equity fund:

Established in 2000, we manage client investment assets of over Rs. 1 trillion (~USD 14bn)
for over 1 million investor folios representing leading institutions, body corporates, family-
offices and individual clients. We are promoted by IDFC Ltd, a widely held publicly listed
company originally set up by the Government of India as India’s premier infrastructure
finance company. IDFC AMC is today one of India’s Top 10 asset managers by AUM,
with a seasoned investment team and deep, on-the-ground presence across over 46 cities,
and serving clients across over 280 towns in India.
37
Strength:
• Rising Net Cash Flow and Cash from Operating activity.

• Effectively using its capital to generate profit - RoCE improving in last 2 years.
• Growth in Net Profit with increasing Profit Margin (QoQ).
• Company with Zero Promoter Pledge.
Weaknesses:
• Red Flag: High Interest Payments Compared to Earnings

• MACD Crossover Below Signal Line
• Inefficient use of shareholder funds - ROE declining in the last 2 years
• Inefficient use of assets to generate profits - ROA declining in the last 2 years
• Red Flag: Downgrade by Credit Rating Agency
• Companies with High Debt
• Annual net profit declining for last 2 years
• Weak Momentum: Price below Short, Medium- and Long-Term Averages.
Opportunities:
• Turnaround companies- loss to profit QoQ

• Decrease in Provision in recent results
Threats:
• Recent broker downgrades in reco or target price

• Increase in NPA in Recent Results
• RSI indicating price weakness
4.2.5 Aditya Birla sun life equity hybrid 95 fund:

Established in 1994, Aditya Birla Sun Life Mutual Fund (ABSLMF), is co-sponsored by
Aditya Birla Capital Limited (ABCL) and Sun Life (India) AMC Investments Inc. Having
38
total domestic assets under management (AUM) of close to Rs.2500 billion for the quarter
ended December 31, 2019, ABSLMF is one of the leading Fund Houses in India based on
domestic average AUM as published by the Association of Mutual Funds of India (AMFI).
ABSLMF has an impressive mix of reach, a wide range of product offerings across equity,
debt, balanced as well as structured asset classes, sound investment performance and over
7 million investor folios as of December 31, 2019.
Strength:
• Effectively using Shareholders fund - Return on equity (ROE) improving since last 2 year
• Efficient in managing Assets to generate Profits - ROA improving since last 2 year
• Growth in Quarterly Net Profit with increasing Profit Margin (YoY)
• Increasing Revenue every quarter for the past 2 quarters
• Company with Zero Promoter Pledg
• FII / FPI or Institutions increasing their shareholding
Weaknesses:
• Red Flag: High Interest Payments Compared to Earnings

• Promoter holding decreased by more than -2% QoQ
• MFs decreased their shareholding last quarter
• Companies with High Debt
• Companies with Increasing Debt
Opportunities:
• Increase in Net Cash Flow so, Companies is able to generate net cash.
Threats:
• Increase in Provisions in Recent Results
39
4.2.6 L & T hybrid equity fund:
A robust monitoring and risk management process ensures checks and balances at every
stage. Here is what happens through every step of our proprietary investment process -
GEM.
1. Generation of ideas
2. Evaluation of companies
3. Manufacturing or Monitoring of portfolios
Strength:
• Company with Low Debt

• Increasing Revenue every Quarter for the past 4 Quarters
• Strong cash generating ability from core business - Improving Cash Flow from operation
for last 2 years
• Annual Net Profits improving for last 2 years
• Book Value per share Improving for last 2 years
• Company with Zero Promoter Pledge
• FII / FPI or Institutions increasing their shareholding
Weaknesses:
• Negative Breakdown First support (LTP < S1)

• Promoter decreasing their shareholding
• Declining Net Cash Flow: Companies not able to generate net cash
• Major fall in TTM Net Profit
• Weak Momentum: Price below Short, Medium- and Long-Term Averages
Opportunities:
• Profit making company with High ROCE and Low PE companies
Threats:
40
• Increasing Trend in Non-Core Income
4.2.7 Tata hybrid equity fund:

Established in 1994, Tata Asset Management has a track record of more than 24 years in
investment management. Tata Asset Management manages investments of Tata Mutual
Fund. As a leading Indian Investment Manager, we understand that managing wealth is as
important as the creation of it.
Strength:
• Rising Net Cash Flow and Cash from Operating activity

• Company with No Debt
• Book Value per share Improving for last 2 years
• Company with Zero Promoter Pledge
Weaknesses:
• MACD Crossover Below Signal Line

• MFs decreased their shareholding last quarter
• Decline in Net Profit (QoQ)
• Decline in Quarterly Net Profit (YoY)
• Decline in Net Profit with falling Profit Margin (QoQ)
• Decline in Quarterly Net Profit with falling Profit Margin (YoY)
• Degrowth in Quarterly Revenue and Profit in Recent Results
• Recent Results: Fall in Quarterly Revenue and Net Profit (YoY)
Opportunities:
• Positive breakout (LTP > R1)
Threats:
41
• Degrowth in Revenue, Profits and Operating Profit Margin in recent results (QoQ)
• Increasing Trend in Non-Core Income
4.2.8 UTI - hybrid equity fund:

We are the seventh largest asset management company in India in terms of mutual fund
QAAUM as of September 30, 2019, according to CRISIL. With more than 11 million Live
Folios as of September 30, 2019, our client base accounts for 12.8% of the approximately
86 million folios that, according to CRISIL, are managed by the Indian mutual fund
industry. Our history and track record in the mutual fund industry, strong brand
recognition, distribution reach, performance and client relationships provide a platform for
future growth.
Strength:
• Near 52 Week High

• Strong Momentum: Price above short, medium- and long-term moving average
There is not able to find out any weakness, opportunity and threat.
4.2.9 LIC mf equity hybrid fund:

LIC Mutual Fund was established on 20th April 1989 by LIC of India. Being an associate
company of India's premier and most trusted brand, LIC Mutual Fund is one of the well-
known players in the asset management sphere. With a systematic investment discipline
coupled with a high standard of financial ethics and corporate governance, LIC Mutual
Fund is emerging as a preferred Investment Manager amongst the investor fraternity.
Weaknesses:
• Weak performer: Stock lost more than 20% in 1 month

• Weak Momentum: Price below Short, Medium- and Long-Term Averages
Threats:
• RSI indicating price weakness

42
4.2.10 Kotak debt hybrid:
Established in 1985, Kotak Mahindra Group is one of India's leading financial services
conglomerates. In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the Group's
flagship company, received banking license from the Reserve Bank of India (RBI),
becoming the first nonbanking finance company in India to convert into a bank - Kotak
Mahindra Bank Ltd. As on June 30, 2016, Kotak Mahindra Bank Ltd, has a significant
national footprint of 1,333 branches spread across 674 locations and 2,034 ATMs,
affording it the capacity and means to serve its customers through its wide presence
Strength:

Weaknesses:
• Decline in Net Profit (QoQ)

• Decline in Quarterly Net Profit (YoY)
• Decline in Net Profit with falling Profit Margin (QoQ)
• Decline in Quarterly Net Profit with falling Profit Margin (YoY)
Opportunities:
• Brokers upgraded recommendation or target price in the past three months

• Positive breakout Third resistance (LTP > R3)
• Decrease in NPA in recent results
• High Volume, High Gain
Threats:

43
CHAPTER:5
DATA ANALYSIS & INTERPRETATION
44
Data Analysis & Interpretation
5.1 Beta
A Beta coefficient can measure the volatility of an individual stock in comparison to the
unsystematic risk of the entire market. In statistical terms, beta represents the slope of the line
through a regression of data points from an individual stock's returns against those of the market.
Beta is used in CAPM, which describes the relationship between systematic risk and expected
return for assets, particularly stocks. CAPM is widely used throughout finance for pricing
risky securities and generating expected returns for assets given the risk of those assets and cost of
capital. Formula for calculating Beta is у = α + βx
Table 1: Beta Analysis 2017-2018
No. Scheme BETA Rank
1 Canara Robeco equity hybrid fund - regular plan - growth 0.7796 1
2 SBI equity hybrid fund - regular plan -growth 0.6950 3
3 IDFC hybrid equity fund-regular plan-growth 0.7257 2
4 HDFC hybrid equity fund-growth 0.6675 6
5 Aditya Birla sun life equity hybrid 95 fund - regular plan- 0.6643 7
growth
6 L&T hybrid equity fund- regular plan – growth 0.6847 4
7 Tata hybrid equity fund regular plan – growth 0.6637 8
8 UTI - hybrid equity fund - regular plan – growth 0.6678 5
9 LIC mf equity hybrid fund-regular plan-growth 0.4492 9
10 Kotak debt hybrid – growth -0.1880 10
45
growth
10 Kotak debt hybrid – growth -0.1807 10
46
growth
10 Kotak debt hybrid – growth 1.05 1
47
BETA FACTOR
2017-18 2018-19 2019-20
1.2
0.8
0.6
Beta
0.4
0.2
-0.2
-0.4
Company Name
Figure 3: Beta Analysis For 3 year
Interpretation
➢ Since Beta value is less than 1 means the fund reacts less than market reaction. All the funds
have Beta less than 1, which indicates that the securities price will be less volatile than the
market.
➢ In the year 2017-2018 top performing fund is canara robeco equity hybrid fund followed by
idfc hybrid equity hybrid fund and sbi equity hybrid fund. It means canara robeco equity hybrid
fund belongs to high risk category as compare to other selected schemes.
➢ In the year 2019-2020, Kotak debt hybrid scheme belongs to high risk category and L&T
hybrid equity belongs to low risk category as compare to other selected schemes.
48
5.2 Sharpe ratio
Sharpe ratio is the measure of risk-adjusted return of a financial portfolio. A portfolio with a higher
Sharpe ratio is considered superior relative to its peers. The measure was named after William F
Sharpe, a Nobel laureate and professor of finance, emeritus at Stanford University.
Formula for finding Sharpe Ratio: (Rp-Rf)/σp
Sharpe ratio is a measure of excess portfolio return over the risk-free rate relative to its standard
deviation. Normally, the 90-day Treasury bill rate is taken as the proxy for risk-free rate.
Table 4: Sharpe Ratio of 2017-2018
No. Scheme Sharpe ratio Rank
1 Canara Robeco equity hybrid fund - regular plan - growth -22% 9
2 SBI equity hybrid fund - regular plan -growth -8% 1
3 IDFC hybrid equity fund-regular plan-growth -20% 8
4 HDFC hybrid equity fund-growth -11% 2
5 Aditya Birla sun life equity hybrid 95 fund - regular plan- -18% 6
growth
6 L&T hybrid equity fund- regular plan – growth -13% 5
7 Tata hybrid equity fund regular plan – growth -19% 7
8 UTI - hybrid equity fund - regular plan – growth -12% 3
9 LIC mf equity hybrid fund-regular plan-growth -13% 4
10 Kotak debt hybrid – growth -41% 10
49
1 Canara Robeco equity hybrid fund - regular plan - growth -7% 1
growth
50
1 Canara Robeco equity hybrid fund - regular plan – growth -16% 2
growth
51
SHARPE RATIO
2017-18 2018-19 2019-20
0%
1 2 3 4 5 6 7 8 9 10
-20%
-40%
Ratio(%)
-60%
-80%
-100%
-120%
Company Name
Figure 4: Sharpe Ratio Analysis
Interpretation
➢ Above table represents the result of Sharpe measure of the last three financial years. In the
study, Sharpe ratio was mostly negative for all schemes which suggest that funds were
providing less returns than risk free rate.
➢ In 2017-2018, a top performing fund is SBI equity hybrid fund followed by HDFC hybrid
equity fund and UTI hybrid equity fund as per Sharpe ratio. It means SBI equity hybrid fund
provide highest return to their investor as compare to other nine schemes and which are also
less then Rp.
➢ As per Sharpe ratio a top performing fund in 2018-2019 is canara robeco equity hybrid fund,
SBI equity hybrid fund and HDFC hybrid equity fund which showed that canara robeco equity
hybrid fund provide highest return as compare to other selected schemes.
➢ In the year 2019-2020, a top performing fund is kotak debt hybrid fund followed by canara
robeco equity hybrid fund and SBI equity hybrid fund. it indicates that kotak debt hybrid fund
provide highest return.
Analyzing the Sharpe ratio, the higher the value, the more excess return. Investors can expect to
receive for the extra volatility they are exposed to by holding a riskier asset. Similarly, a risk-free
asset or a portfolio with no excess return would have a Sharpe ratio of zero.
52
5.3 Treynor Ratio
The Treynor Ratio is a portfolio performance measure that adjusts for systematic risk. In contrast
to the Sharpe Ratio, which adjusts return with the standard deviation of the portfolio, the Treynor
Ratio uses the Portfolio Beta, which is a measure of systematic risk.
formula for calculating Treynor Ratio is (Rp-Rf)/Beta
These ratios are concerned with the risk and return performance of a portfolio and are a quotient
of return divided by risk. The Treynor Ratio is named for Jack Treynor, an American economist
known as one of the developers of the Capital Asset Pricing Model.
Table 7: Treynor Ratio of 2017-2018
No. Scheme Treynor ratio Rank
1 Canara Robeco equity hybrid fund - regular plan – growth 3.90% 4
2 SBI equity hybrid fund - regular plan -growth 8.31% 1
3 IDFC hybrid equity fund-regular plan-growth 0.04% 8
4 HDFC hybrid equity fund-growth 7.12% 2
5 Aditya Birla sun life equity hybrid 95 fund - regular plan- 1.97% 7
growth
6 L&T hybrid equity fund- regular plan – growth 4.56% 3
7 Tata hybrid equity fund regular plan – growth -3.42% 9
8 UTI - hybrid equity fund - regular plan – growth 2.62% 6
9 LIC mf equity hybrid fund-regular plan-growth -9.13% 10
10 Kotak debt hybrid – growth 3.73% 5
53
1 Canara Robeco equity hybrid fund - regular plan – growth 2.63% 2
2 SBI equity hybrid fund - regular plan -growth 2.11% 3
3 IDFC hybrid equity fund-regular plan-growth -4.88% 8
4 HDFC hybrid equity fund-growth 1.72% 4
5 Aditya Birla sun life equity hybrid 95 fund - regular plan- -4.43% 7
growth
6 L&T hybrid equity fund- regular plan – growth -6.10% 10
8 UTI - hybrid equity fund - regular plan – growth -5.68% 9
9 LIC mf equity hybrid fund-regular plan-growth 0.37% 5
10 Kotak debt hybrid – growth 16.73% 1
54
1 Canara Robeco equity hybrid fund - regular plan – growth -31.78% 2
2 SBI equity hybrid fund - regular plan -growth -39.56% 3
3 IDFC hybrid equity fund-regular plan-growth -65.42% 5
4 HDFC hybrid equity fund-growth -57.8% 4
5 Aditya Birla sun life equity hybrid 95 fund - regular plan- -227.24% 7
growth
6 L&T hybrid equity fund- regular plan – growth -251.49% 10
8 UTI - hybrid equity fund - regular plan – growth -228.89% 8
9 LIC mf equity hybrid fund-regular plan-growth -225.81% 6
10 Kotak debt hybrid – growth -5.17% 1
55
TREYNOR RATIO
50.00%
0.00%
-50.00%
Ratio(%)
-100.00%
-150.00%
-200.00%
-250.00%
-300.00%
Company Name
2017-18 2018-19 2019-20
Figure 5: Treynor Ratio Analysis
Interpretation:
➢ As per Treynor ratio, it is observed that sbi equity hybrid fund scheme is again at top in the
year 2017-2018. It is indicating that sbi equity hybrid fund provide high return to their investors
as compare to other selected schemes.
➢ In the year 2018-2019, top performing scheme is kotak debt hybrid fund followed by canara
robeco equity hybrid fund and sbi equity hybrid fund. It showed that kotak debt fund provide
high return with low risk.
➢ In the year 2019-2020, Treynor ratio indicates that kotak debt hybrid fund is again at top and
canara robeco equity hybrid fund is again at second highest as compare to selected fund.
56
5.4 Standard deviation
From a statistics standpoint, the standard deviation of a dataset is a measure of the magnitude of
deviations between the values of the observations contained in the dataset. From a financial
standpoint, the standard deviation can help investors quantify how risky an investment is and
determine their minimum required return on the investment.
Table 10: Standard Deviation of 2017-2018
No. Scheme S. D Rank
1 Canara Robeco equity hybrid fund - regular plan – growth 0.20 2
growth
57
Table 11: Standard Deviation of 2018-2019
1 Canara Robeco equity hybrid fund - regular plan – growth 0.41 2
growth
58
Table 12 : Standard Deviation of 2019-2020
1 Canara robeco equity hybrid fund - regular plan - growth 0.73 2
2 Sbi equity hybrid fund - regular plan -growth 0.77 3
3 Idfc hybrid equity fund-regular plan-growth 0.90 10
4 Hdfc hybrid equity fund-growth 0.83 6
5 Aditya birla sun life equity hybrid 95 fund - regular plan- 0.85 8
growth
6 L&t hybrid equity fund- regular plan – growth 0.83 7
8 Uti - hybrid equity fund - regular plan – growth 0.86 9
9 Lic mf equity hybrid fund-regular plan-growth 0.78 4
59
STANDARD DEVIATION
1
0.9
0.8
0.7
0.6
0.48 0.47 0.46
0.45 0.45
SD
0.5 0.43 0.44 0.43

0.41
0.4
0.3 0.24
0.2
0.1
0
Company Name
2017-18 2018-19 2019-20
Figure 6: Standard Deviation analysis
Interpretation:
➢ In this comparative analysis it is observed that kotak debt hybrid scheme indicates high
return among the selected funds and in comparison, to other funds risk & the market risk,
it also has low risk. It is same for all three financial years.
➢ In the year 2017-2018, LIC mf equity hybrid fund indicates low return as compare to the
selected funds and it is also indicating high risk.
➢ In the year 2018-2019 and 2019-2020 IDFC hybrid equity fund indicates low return as
compare to selected schemes and it is also indicating high risk according to standard
deviation.
60
Findings
The Findings are the overall analysis of the Research Study made, and it is seen what all are the
measures that have been done, and what are the loopholes that have to be rectified all are mentioned
here:
Here in Research we had considered last 3 financial year’s data on the basis of that we had
calculated sharp ratio, Beta, Treynor Ratio and Standard Deviation.
→ In Financial year 2017-18 compare to other two year it mostly proved that this is mostly
preferable year for investor and according to all ratios it shows a positive growth in the
Mutual Fund Industry.
→ In this year 2018-19 most of the companies are not much progressive or not more degrative
so, in this year economic scenario was stable for investors and companies as well.
→ In 2019-20 at the beginning of January everything was hanky dory but in month of March
due to effect of Covid-19 most of economy devastated and all stock went alpha to amigo.
→ According to my point of parlance considering all three financial year out of 10 if we want
to give a rant on top so, kotak is the best to invest.
Overall Analysis
150%
100%
50%
0%
Canara SBI IDFC HDFC Aditya Birla L&T Tata UTI LIC Kotak
-50% robeco
-100%
-150%
-200%
-250%
-300%
Sharpe Ratio 2017-18 Sharpe Ratio 2018-19 Sharpe Ratio 2019-20

Treynor Ratio 2017-18 Treynor Ratio 2018-19 Treynor Ratio 2019-20
SD 2017-18 SD 2018-19 SD 2019-20
Figure 7: Overall Analysis
61
According to chart, In year 2017-18 sharpe and teynore ratio are mostly positive but in the year
2019-20 both ratio are decrease in the in the short period of time. you can see the line of the both
ratios in the graph. which are stable in first two years and decrease in last year.
Standard Deviation is measured as a opposite way means high SD is suggest worst sing and low
SD suggest boom. In the graph if we see the line of SD so it is increasing year by year means in
year 2017-18 it was low compare to other two years and in 2019-20 it was very high. which means
financial year 2017-18 was the best year for return.
62
Conclusin
Conclusion is nothing but the overall summary of the research conducted. It expresses the purpose
of the researcher behind the research along with the benefits, drawbacks of the study. With the
objective to analyze the financial health of the companies through financial indicators, the
conclusion is made on the basis of the analysis conducted.
In India, mutual funds have been getting popularity as investment opportunity. Unlike stocks, it is
considered safe and reliable one and continuously increasing its clientale i.e. unitholders. All the
selected funds outperformed the market & indicated superior risk adjusted performance.
In overall study, it reveals that Canara rebeco is most preferable company for investing in mutual
fund. Because depend on the Sharpe and Treynor ratio other companies are fluctuating in 2019-20
but this company was stable in nature. compare to other companies this company showed the lower
risk and minimal return to the investors. Further to awake the people of our country about the
framework of mutual funds where there is enough quantum of financial illiterate people, more
investigations of this kind especially by academic institutions through research students are the
need of time.
63
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A Research

In partial fulfillment of the requirement of the award for the degree of

Integrated Masters of Business Administration

Under the guidance of

Dr. Amish Soni

Taher Makada (201900620010484)

This is to certify that Mr. Taher Ismailbhai Makada Enrolment No.

Date: 31 May, 2020

Investor’s behavior is influenced by many factors during investment decision making.

Dr. S.P. Dhandayuthapani, M.K. Sindhu, A Study on Performance Evaluation of Selected

Ms. K. HemaDivya, A Comparative study on Evaluation of Selected Mutual Funds in India,

2.1 Research Problem

Performance Evaluation and analysis of Mutual Funds in Different situations. investors

2.2 Objective of Study

2.4 Scope of Study

Table 2.5.1 Summary of LR

No. Author Description Conclusion

2.7 Research Tools and Techniques

For this research mostly, we used excel.

Ho: There is no significance difference between age and investment pattern

1. The sample size is restricted to NSC listed companies.

Phase 1: Establishment and Growth of UTI (1964-1987)

Phase 2: Entry of Public Sector Funds (1987-1993)

Phase 3: Emergence of Private Sector Funds (1993-1996)

Phase 4: Growth and SEBI Regulation (1996-1999)

Phase 5: Emergence of a Large & Uniform Industry (1999- 2004)

Phase 6: Consolidation and Growth (2004 onward…)

A model was put forward by

1. Threat of New Entrants

2. Bargaining Power of Suppliers:

3. Bargaining Power of Buyers:

4. Threat of Substitute Products:

5. Rivalry Among Existing Firms:

The two main classes of mutual funds are as following;

1. Canara Robeco Equity Hybrid Fund

4.2.1 Canara Robeco Equity Hybrid Fund:

4.2.2 HDFC Hybrid Equity Fund:

• Organization’s core competencies can be a success in similar others products field. A

4.2.3 SBI Equity Hybrid Fund:

• Competition from private sector and foreign mutual funds.

4.2.4 IDFC hybrid equity fund:

• Rising Net Cash Flow and Cash from Operating activity.

• Red Flag: High Interest Payments Compared to Earnings

• Turnaround companies- loss to profit QoQ

• Recent broker downgrades in reco or target price

4.2.5 Aditya Birla sun life equity hybrid 95 fund:

• Red Flag: High Interest Payments Compared to Earnings

• Increase in Provisions in Recent Results

• Company with Low Debt

• Negative Breakdown First support (LTP < S1)

• Profit making company with High ROCE and Low PE companies

4.2.7 Tata hybrid equity fund:

• Rising Net Cash Flow and Cash from Operating activity

• MACD Crossover Below Signal Line

• Positive breakout (LTP > R1)

4.2.8 UTI - hybrid equity fund:

• Near 52 Week High

4.2.9 LIC mf equity hybrid fund:

• Weak performer: Stock lost more than 20% in 1 month

• RSI indicating price weakness

• Recent broker downgrades in reco or target price

• Decline in Net Profit (QoQ)

• Brokers upgraded recommendation or target price in the past three months