Certificate Performance Analysis

Certificate
This is to certify that the project report entitled, “RISK-RETURN ANALYSIS AND
COMAPARATIVE STUDY OF SELECT MUTUAL FUNDS”, submitted to Department of
Management Studies, University of Kashmir, in partial fulfillment of the requirements for the
award of the degree of Masters Of Business Administration FM, is a record of original
research work done by “Mr. Shadab Farooq & Mr. Umaid Latief, under my supervision and
guidance. The report has not formed the basis for the award of any Degree/Associateship/
Fellowship or any other similar title of any candidate of any university.
Prof. Dr. Iqbal Hakeem

Head of department, Mr. Mir Mudassir
Department of Management Studies Branch Operations Manager
University of Kashmir HDFC Bank Ltd Rajbagh
DECLARATION
We hereby declare that the project entitled “RISK-RETURN ANALYSIS AND
COMAPARATIVE STUDY OF SELECT MUTUAL FUNDS” submitted for the partial
fulfilment of the requirements for the award of the Degree of Masters of Business
Administration is our original work and the project has not formed the basis for the award of
any degree, associateship, fellowship or any other similar titles.
SHADAB FAROOQ
UMAID LATEIF
Place: Srinagar
Date: 02/07/2021
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EXECUTIVE SUMMARY
The performance analysis of mutual funds is a fundamental matter of concern to fund managers,
investors, and researchers. The core competence of the organization is to meet the aspirations,
objectives, and requirements of the investors and to give an ideal return to their risk. This study
is centered on the performance analysis of mutual funds of HDFC Asset Management Company.
The first segment gives insight into the Mutual fund industry and company profile. The
subsequent segment deals with the need, objective, scope, and limitations of this investigation. It
likewise examines the sources and the period for the data collection. The next segment deals with
the data analysis and interpretation wherein all the key techniques related to performance
analysis are done with the outcomes. In the final segment, an attempt is made to analyze the
performance of the above mentioned mutual funds with the help of risk-adjusted performance
measures such as Treynor measure, Sharpe proportion, Jensen’s Alpha, and Fama measure.
Toward the end, it shows the suggestions, findings, and conclusions based on the examination
done in the past segments.
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ACKNOWLEDGMENT
We consider it a privilege to express through the pages of this report, a few words of gratitude
and respect to those who guided and inspired us in the completion of this project report. We are
deeply indebted to Mr. Mir Mudassir , Branch Operations Manager HDFC Bank Ltd, Rajbagh
for giving us an opportunity to complete our internship project in the organization and for his
valuable time and suggestions.
We would also like to express my gratitude towards our HOD Prof. Dr. Iqbal Hakeem for
giving us this great opportunity to do a project. Without their support and suggestions, this
project would not have been completed.
And we would also like to express our gratitude towards the faculty members of Department of
Management Studies, University of Kashmir for their kind cooperation and encouragement
which helped us in completion of this project.
Umaid Lateef
Shadab Farooq
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CONTENTS
1 Industry Profile 1
1.1 Mutual Funds History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.2 Industry Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2 Company Profile 6
2.1 Company Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
3 SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
3.1 Strengths. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
3.2 Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
3.3 Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
3.4 Threats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
4 Learning Experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
4.1 Learning Experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
5 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
5.1 Concept of a Mutual Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
5.2 Operational flow of Mutual Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
5.3 Parties to Mutual Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
5.4 Types of Mutual Fund Schemes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
5.5 Advantages of Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
5.6 Disadvantages of Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
5.7 Investment Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
5.8 Organization of Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
5.9 Need of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
5.10 Objectives of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
5.11 Scope of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
5.12 Limitations of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
6 Literature Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
6.1 Literature Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7 Research Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
7.1 Research Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
7.2 Data Collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
7.3 Data Analysis Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
8 Data Analysis and Interpretation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
8.1 Data Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
8.1.1 HDFC Equity Fund Growth Option . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
8.1.2 HDFC Capital Builder Value Fund Growth Option . . . . . . . . . . . . . . . . . . . . . . . . 34
8.1.3 HDFC Tax Saver Fund Growth Option . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
8.1.4 HDFC Top 100 Fund Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
8.2 Interpretations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
9 Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
9.1 Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
9.2 Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
9.3 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
10. References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
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LIST OF TABLES
Table No. Particulars Page No.
8.1 HDFC Equity Fund Growth Option Portfolio Details 30
8.2 HDFC Equity Fund Growth Option S.D(Market) 31

Calculation
8.3 HDFC Equity Fund Growth Option S.D(Portfolio) 32
Calculation
8.4 HDFC Capital Builder Value Fund Portfolio Details. 34
8.5 HDFC Capital Builder Value Fund S.D(Market) 35

Calculation
8.6 HDFC Capital Builder Value Fund S.D(Portfolio) 36
Calculation
8.7 HDFC Tax Saver Fund Portfolio Details 38
8.8 HDFC Tax Saver Fund Growth S.D (Market) Calculation 39
8.9 HDFC Tax Saver Fund S.D Growth (Portfolio) Calculation 40
8.10 HDFC TOP 100 FUND Growth Portfolio Details 42
8.11 HDFC TOP 100 FUND S.D (Market) Calculation 43
8.12 HDFC TOP 100 FUND S.D (Portfolio) Calculation 44
8.13 Comparison of Ratios 46
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LIST OF FIGURES
Figure No. Particulars Page No.
5.1 Concept of Mutual Fund 12
5.2 Operational Flow of Mutual Fund 13
5.3 Parties to Mutual Fund 13
5.4 Types of Mutual Fund Schemes 16
5.5 Organization of Mutual Funds 20
8.1 Asset Allocation (HDFC Equity Fund) 30
8.2 Return of Fund Portfolio and Market Portfolio (HDFC 31

Equity Fund)
8.3 Asset Allocation (HDFC Capital Builder Fund) 34

Capital Builder Fund)
8.5 Asset Allocation (HDFC Tax Saver Fund) 38

Tax Saver Fund)
8.7 Asset Allocation (HDFC Top 100 Fund) 42

Top 100 Fund)
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LIST OF ABBREVATIONS AND SYMBOLS
RBI Reserve Bank of India
ADB Asian Development Bank
AMFI Association of Mutual Funds in India
BSE The Stock Exchange, Mumbai
AMC Asset Management Company
CRR Cash Reserve Ratio
CAGR Compound annual growth rate
SEBI Securities and Exchange Board of India
MF Mutual Fund
AUM Asset Under Management
SIP Systematic Investment Plan
SWOT Strength weakness opportunity threat
R&T Registrar and Transfer Agent
ELSS Equity Linked Savings Schemes
NAV Net Asset Value
ETF Exchange-Traded Funds
SD Standard Deviation
AR average periodic return
Si Sharpe Ratio
Ti Treynor's Index
αp Jensen’s Alpha
 Beta
Σ Standard Deviation
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1. Industry Profile
1.1 Mutual Funds History
Phase of Inception
The primary stage of the mutual fund industry was set apart by the setting up of the UTI. In spite
of the fact that it was cooperation between the RBI and the Indian Government, the last was soon
delinked from the everyday tasks of the Unit Trust of India. In this stage, the organization was
the sole administrator in the Indian mutual fund industry. UTI launched the Unit Linked
Insurance Plan or the ULIP in 1971. Till 1986, UTI presented a few plans and assumed an
exceptionally large part in presenting the idea of mutual funds in India. When UTI was set up
quite a long while prior, the thought was to not simply introduce the idea of mutual funds in
India; a related thought was to set up a corpus for nation development too. In this manner, in
order to empower the small mall Indian investor, the government built in several income-tax
rebates in the UTI schemes. The investible corpus of UTI expanded from 600 crores in 1984 to
6,700 crores in 1988. Clearly, the opportunity had arrived for the Indian common industry to
move into the following stage.
Entry of Public Sector

By the end of 1988, the mutual fund industry had gained its own character and numerous public
sector banks started lobbying the government for starting their own mutual fund arms .The first
non-UTI Asset Management Fund was set up by the State Bank of India in November 1987. This
AMC was immediately trailed by the formation of different AMCs by banks like Canara Bank,
Indian Bank, Life Insurance Corporation, General Insurance Corporation, and Punjab National
Bank. This opening up of the mutual fund industry delivered the ideal outcomes. In 1993, the
aggregate corpus of all the AMCs went up to Rs. 44,000 crores. Observers of this industry state
that in the subsequent stage, the base of the business expanded as well as it urged investors to
spend a higher level of their savings in mutual funds. It was clear that the mutual fund industry in
India was ready for higher development.
Entry of Private Sector

In the period 1991-1996, the Government of India had understood the significance of the
liberalization of the Indian economy. Financial sector changes were the need of the hour. India
required private sector investment for the reconstructing of the economy. Keeping this in view,
the government opened up the mutual fund industry for the private sector too. The foreign
players welcomed this move and entered the Indian market in huge numbers. In this period, 11
private players – as a team with foreign entities launched their Asset Management Funds.
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A portion of the top AMCs in the private sector were:
 ICICI Prudential AMC-This Company is a joint venture between ICICI Bank of

India and Prudential Plc of UK. It deals with a corpus of INR 2, 93,000 crores and has a
stock of in excess of 1400 schemes.
 HDFC Mutual Fund-Launched during the 1990s, the HDFC Mutual Fund oversees
more than 900 various types of funds.
 Kotak Mahindra Mutual Fund-This AMC has an advantage base of more than Rs. 1,
19,000 crores.
SEBI Interventions, Growth and AMFI
As the mutual fund industry developed further during the 1990s, the AMCs and the government
felt that it was the ideal opportunity for some regulation and control. Investors must be secured
just as a level playing ground had additionally to be set down. A couple of years back, the Indian
business had suffered a lot due to bank scams and there was a genuine danger that investors may
lose their money yet again. Subsequently, the government introduced the SEBI Regulation Act in
1996 which set out a lot of reasonable and straightforward principles for all the stakeholders. In
1999, the Indian government pronounced that all mutual fund dividends would be exempt from
income tax. The idea behind this choice was to spike the development in the mutual fund
industry. In the interim, the mutual fund industry additionally understood the significance of self-
guideline. Accordingly, it set up an industry body-the Association of Mutual Funds of India
(AMFI). One of the objectives of this body is investor education.
Phase of Steady Development and Growth

Recognizing the shortage of penetration of mutual funds in India, especially within the tier II and
tier III cities, SEBI launched numerous progressive measures in September 2012. the concept
behind these measures was to bring more transparency and security for the interest of the
stakeholders. This was SEBI’s idea to‘re-energize’ the Indian MF Industry and boost the general
penetration of mutual funds in India. The measures bore fruit within the due course by
countering the negative trend that was set due to the worldwide financial crisis. Things improved
considerably after the new government took charge at the middle. Since May ’14, the Indian MF
industry has experienced a uniform inflow and rise within the overall AUM also because the
total number of investor accounts (portfolio). Asset Management Companies in India managed a
combined worth of around Rs. 23 lakh crore of assets. Though this number looks attractive, we
still need to go an extended way so as to match the west .It is estimated that Indians save
approximately Rs. 20-30 lakh crore annually. The Indian mutual fund industry can grow
immensely if Indians started parking a better percentage of their savings in MFs. Observers say
that Indians have begun shifting a neighborhood of their savings from physical assets like
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gold and land to financial instruments like bonds and silver. However, the AMFI and therefore
the government got to encourage Indians even more for investments in mutual funds.
1.2 Industry Profile

The India mutual fund Industry is categorized on the basis of asset class (Debt oriented schemes,
Equity oriented Schemes, market, and Exchange Traded Funds & Fund of Funds), by the source
of funds (Bank Sponsored, Retail Investors, Indian Institutional Investors, Foreign Institutional
Investments, Insurance Companies, and Others). The Assets under Management (AuM) in India
mutual fund Industry stands at 24.55 trillion INR as of May 31st, 2020. The AuM in India has
grown four-fold during a decade (2010 - 2020) and aims at fourfold growth by 2025. Equity
AuMs continued to be the main contributor with 42.1% share while debt-oriented schemes
accounted for 28.8% of AuMs and the Liquid/money market accounted for 23.3% in September
2019. The strategy of digital penetration, government targeting smart cities and increased data
speeds also are facilitating the drift of asset share towards smaller cities and towns. Increased
retail contribution through SIPs shows the facility of digital penetration in India. The entire
number of folios as on May 31, 2020, stood at 91 Million, and therefore the maximum
investment is from the retail segment stood at INR 80.3 Million. The industry has seen
developing participation from families in the recent past, given developing awareness, financial
inclusion, and enhanced access to banking channels. The industry added 44.2 million folios
between March 2014 and June 2019. Almost the whole growth in folios came from the
individual investors' segment (retail & HNI), which logged a CAGR of 15.5% over this era.
Their average ticket size, too, increased from 102,000 INR in March 2014 to 169,000 INR in
June 2019. As of June 2019, 57.4% of individual investors’ AUM was into equity -oriented
funds, whereas institutional investors mainly preferred the fixed-income segment (debt and
liquid/ money market), which constituted 77.2% of their assets. SIP vehicles are largely driven
by retail investors thanks to increased financial awareness and increased digital penetrations. As
new retail investors are arising, Systematic investment plan has a gentle uptrend despite market
volatility. Total SIP accounts have increased from 10 mn in April 2016 to 27.3 mn in June 2019.
SIPs taken by investors with a long-term investing horizon give better returns and reducing
negative returns significantly. There are almost 32 Million SIP accounts as of May 2020 through
which investors regularly invest in Indian mutual fund Schemes. The SIP installment amount
might be as small as ₹ 500 per month.
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A .Bank Sponsored
1. Joint Ventures - Predominantly Indian
 - BOI AXA Investment Managers Private Limited
 - Canara Robeco Asset Management Company Limited
 - SBI Funds Management Private Limited
 - Union Asset Management Company Private Limited (formerly Union KBC Asset
Management Co. Pvt. Ltd)
2. Others
 - Baroda Asset Management India Limited (formerly known as Baroda Pioneer Asset
Management Co. Ltd.)
 - IDBI Asset Management Limited
 - UTI Asset Management Company Ltd
B. Institutions
1. Indian
 - IIFCL Asset Management Co. Ltd.
 - LIC Mutual Fund Asset Management Limited
C. Private Sector
1. Indian
 - DSP Investment Managers Private Limited
 - Edelweiss Asset Management Limited
 - Essel Finance AMC Limited
 - IDFC Asset Management Company Limited
 - IIFL Asset Management Ltd. (Formerly known as India Infoline Asset Management Co.
Ltd.)
 - IL&FS Infra Asset Management Limited (CIN U65191MH2013PLC239438)
 - Indiabulls Asset Management Company Ltd.
 - ITI Asset Management Limited
 - JM Financial Asset Management Limited
 - Kotak Mahindra Asset Management Company Limited(KMAMCL)
 - L&T Investment Management Limited
 - Motilal Oswal Asset Management Company Limited
 - PPFAS Asset Management Pvt. Ltd.
 - quant Money Managers Limited
 - Quantum Asset Management Company Private Limited
 - Sahara Asset Management Company Private Limited
 - Shriram Asset Management Co. Ltd.
 - SREI Mutual Fund Asset Management Pvt. Ltd.
 - Sundaram Asset Management Company Limited
 - Tata Asset Management Limited
 - Taurus Asset Management Company Limited
 - Trust Asset Management Private Limited
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 - YES Asset Management (India) Ltd.
2. Foreign
 - BNP Paribas Asset Management India Private Limited
 - Franklin Templeton Asset Management (India) Private Limited
 - HSBC Asset Management (India) Private Ltd.
 - Invesco Asset Management (India) Private Limited
 - Mirae Asset Investment Managers (India) Pvt. Ltd.
 - Nippon Life India Asset Management Limited
 - PGIM India Asset Management Private Limited
 - Principal Asset Management Pvt. Ltd.
3. Joint Ventures - Predominantly Indian
 - Aditya Birla Sun Life AMC Limited
 - Axis Asset Management Company Ltd.
 - HDFC Asset Management Company Limited (Corporate Identification Number -
L65991MH1999PLC123027)
 - ICICI Prudential Asset Management Company Limited
 - Mahindra Manulife Investment Management Pvt Ltd (Formerly Mahindra Asset Management
Company Pvt Ltd)
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2. Company Profile
2.1 Company Profile
HDFC Asset Management (HDFC AMC) is the investment manager to HDFC Mutual Fund
(HDFC MF) the largest mutual fund in India with total AUM of Rs.415566 Crore as of March 31
2021. HDFC AMC has a diversified asset class mix across Equity and Fixed Income/Others. It
has a countrywide network of branches along with a diversified distribution network comprising
Banks Independent Financial Advisors and National Distributors. The Company is a subsidiary
of Housing Development Finance Corporation Limited. As on 31 March 2019 the company had
more than 75000 empanelled distribution partners serviced through a total of 210 branches. As at
March 31 2019 Housing Development Finance Corporation Ltd the holding company owned
52.77% of the Company's equity share capital. The Company operates as a joint venture between
Housing Development Finance Corporation Limited ('HDFC') and Standard Life Investments
Limited ('SLI'). HDFC is one of India's leading housing finance companies. HDFC group has
emerged as a recognized financial conglomerate in India with presence in housing finance
banking life and non life insurance asset management real estate funds and education finance.
Listed companies of the HDFC group include HDFC Limited HDFC Bank Limited HDFC
Standard Life Insurance Company Limited and GRUH Finance Limited which had market
capitalizations of US$46.87 billion (Rs. 3209.38 billion) US$80.19 billion (Rs. 5490.74 billion)
US$13.41 billion (Rs. 918.01 billion) and US$3.25 billion (Rs. 222.47 billion) respectively as of
June 30 2018. SLI is an indirect subsidiary of Standard Life Aberdeen pic ('Standard Life
Aberdeen') one of the world's largest investment companies created in 2017 from the merger of
Standard Life plc and Aberdeen Asset Management PLC. SLI operates within the brand
Aberdeen Standard Investments; with its investment arm managing 575.7 billion (Rs. 49666.50
billion) of assets as of December 31 2017 making it one of the largest active managers in Europe.
Standard Life Aberdeen is listed on the London Stock Exchange and had a total market
capitalization of 9.70 billion (Rs. 876.72 billion) as of June 30 2018. The company offers a large
suite of savings and investment products across asset classes which provide income and wealth
creation opportunities to customers. As of March 31 2019 the company offered 147 schemes that
were classified into 22 equity-oriented schemes 115 debt schemes (including 72 fixed maturity
plans ('FMPs')) 3 liquid schemes and 7 other schemes (including exchange-traded schemes and
funds of fund schemes). This diversified product mix provides them with the flexibility to
operate successfully across various market cycles cater to a wide range of customers from
individuals to institutions address market fluctuations reduce concentration risk in a particular
asset class and work with diverse sets of distribution partners which helps to expand its reach.
The Company also provides portfolio management and segregated account services including
discretionary non-discretionary and advisory services to high net worth individuals ('HNIs')
family offices domestic corporate trusts provident funds and domestic and global institutions.
HDFC Asset Management Company Limited was incorporated as a public limited company on
December 10 1999 and obtained its certificate for commencement of business on March 9 2000
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from the RoC. It was approved to act as an Asset Management Company for HDFC Mutual Fund
by SEBI on 3 July 2000. In September 2000 the company's Assets under Management (AUM)
reached Rs 6.5 billion. In August 2001 Standard Life Investments became a shareholder of the
company. In September 2002 the company's AUM crossed Rs 100 billion.In June 2003 HDFC
Asset Management Company acquired Zurich Asset Management Company Limited (ZAMC)
having an AUM of Rs 34 billion. In January 2009 the company's AUM crossed Rs 500 billion. In
October 2009 the company's AUM crossed Rs 1 trillion. In March 2011 HDFC Debt Fund for
Cancer Cure was launched. In March 2014 the company launched its second CSR oriented fund
viz. HDFC Debt Fund for Cancer Cure 2014. In June 2014 the company acquired Morgan
Stanley Mutual Fund schemes having an AUM of Rs 19 billion. In September 2014 the
company's AUM crossed Rs 1.5 trillion. In May 2016 the company's AUM crossed Rs 2 trillion.
In April 2017 the company's Equity AUM crossed Rs 1 trillion. In December 2017 the
company's AUM crossed Rs 3 trillion. During the financial year the shareholders of the
Company at their meeting held on January 16 2014 approved the buy-back of equity shares of
the Company from the shareholders of the Company through tender offer. The buy-back offer
was completed within the time limits as prescribed under the Companies Act 1956 and 141500
equity shares of the Company were bought by the Company under the buy-back offer. The
present paid-up capital post the buy-back offer is Rs. 252408000/-.HDFC Asset Management
Company' promoters viz. HDFC and Standard Life Investments Limited offloaded a total of 2.54
crore shares through an initial public offer (IPO) of during the period from 25 July 2018 to 27
July 2018. There was no fresh issue of shares by the company. HDFC offloaded 85.92 lakh
shares and Standard Life Investments Limited offloaded 1.68 crore equity shares through the
IPO. The IPO was priced at Rs 1100 per share. The company's shares were listed on the bourses
on 6 August 2018. The Board of Directors recommended issue of Bonus shares in the ratio of 3:1
i.e. 3 new equity shares for every one equity share held and sub-division of equity shares of
Rs.10/- each into two equity shares of Rs. 5/- each which was approved by the Shareholders at an
extra-ordinary general meeting held on February 6 2018. Accordingly bonus shares were allotted
to the members who held the equity shares on the Record Date i.e. February 5 2018 by
capitalization of balance in the free reserves amounting to Rs. 78.96 crores. Further the equity
shares of face value of Rs. 10/- each were sub-divided into two equity shares of face value of Rs.
5/- each by way of corporate action to the shareholders who held the shares on the Record Date
i.e. February 13 2018.The Board of Directors at its meeting held on March 8 2018 have accorded
in-principle approval for issue of up to 1600000 equity shares of face value of Rs. 5/ - each of the
Company for cash consideration aggregating up to Rs. 210 crores by way of a private placement
in accordance with the provisions of Sections 23 42 and 62(1)(c) of the Companies Act 2013
read with Rule 13 of the Companies (Share Capital and Debentures) Rules 2014. During the year
2018 the Board of Directors of the Company approved taking steps to initiate the process for an
Initial Public Offering (IPO) of the Company by way of an offer for sale by Housing
Development Finance Corporation Limited (HDFC Ltd) and Standard Life Investments Limited
7|Page
(SLI) in one or more tranches such that the post dilution shareholding of HDFC Ltd is at 50.01%
and SLI at 24.99%. This is subject to relevant regulatory and other approvals as applicable.
Accordingly the Company has filed Draft Red Herring Prospectus with Securities and Exchange
Board of India on March 15 2018. The Company is presently awaiting/will require approvals
from SEBI and other regulatory authorities. The Company has successfully undertaken
Investment and Advisory services mandates during the financial year 2017-18 pursuant to
approval received from Securities and Exchange Board of India (SEBI) with respect to
undertaking Investment and Advisory services under Regulation 24(b) of the SEBI (Mutual
Fund) Regulations 1996. As on March 31 2018 the aggregate assets under investment
management/advisory services was Rs 5099 crore. During the year the Company has completed
its Initial Public Offering (IPO) through an offer for sale of equity shares. The equity shares of
the Company were listed on National Stock Exchange of India Limited and BSE Limited on
August 06 2018.Pursuant to the receipt of approval of the members at the Extra Ordinary
General Meeting of the Company held on April 18 2018 the Company issued and allotted
1433600 equity shares of the Company of Rs.5/- each at an issue price of Rs.1050/- per equity
share aggregating to Rs.1505280000/- by way of a private placement in accordance with
Sections 62(1)(c) 42 and other applicable provisions if any of the Companies Act 2013 including
the Rules framed there under. The funds raised from the issuance of private placement were
utilized for general corporate purposes including enhancement of the systems infrastructure.
HDFC Ultra Short Term Fund (the open-ended scheme) was launched in the month of September
2018. The investment objective of the Scheme is to generate regular income through investments
in Debt and Money Market Instruments while maintaining McCauley duration of the portfolio
between 3 months and 6 months. The Scheme aims to generate income through investments in a
range of debt and money market instruments. The Scheme would endeavor to generate returns
commensurate with low levels of interest rate risk. The NFO of the Scheme mobilized assets to
the tune of Rs.1161 Crore. As of March 31 2019 HDFC MF offered 147 schemes across asset
classes to meet the varying investment needs of investors.
8|Page
3. SWOT ANALYSIS
3.1 Strengths
 Rising Net Cash Flow and Cash from Operating activity.
 Efficient in managing Assets to generate Profits - ROA improving since last 2 year.
 Growth in Net Profit with increasing Profit Margin (QoQ).
 Growth in Quarterly Net Profit with increasing Profit Margin (YoY).
 Company with No Debt.
 Increasing profits every quarter for the past 2 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.
3.2 Weaknesses
 MFs decreased their shareholding last quarter
 Inefficient use of capital to generate profits - RoCE declining in the last 2 years.
 Decline in Quarterly Net Profit (YoY).
 Promoter decreasing their shareholding.
 Fall in Quarterly Revenue and Net Profit (YoY).
9|Page
3.3 Opportunities
 Rising Delivery Percentage Compared to Previous Day.
 High Momentum Scores (Technical Scores greater than 50).
 RSI indicating price strength.
3.4 Threats
 Recent Broker Downgrades in Reco or Target Price.
 Increasing Trend in Non-Core Income.
 Stocks with high PE (PE > 40).
 Insiders sold stock.
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4. Learning Experience
4.1 Learning Experience
Our internship was started on 5th May 2021 with HDFC Bank Ltd B/o RajBagh. The internship
period was for 4 weeks and we got to work on HDFC mutual funds. When we initially started we
were prejudiced with the thought that exposure towards mutual funds in a small town would be
very little but when we started we got to interact with our supervisor and was shocked to know
that a lot of people prefer mutual funds and have detailed information about this investment
opportunity and people have been investing in mutual funds from a very long time. After the
start of our internship the branch got cclosed due to the covid positive of the staff and we were
asked to work from home. Our supervisor was very helpful and provide us with the necessary
data that we used later. Because we studied the risk and return in the third semester, it was not
difficult to use this data and find the necessary information. We consider 4 schemes of HDFC
mutuals funds and calculate their risk and return and later compare their performance for better
investment opportunity. Also, we consider the effect of covid pandemic on mutual fund
performance and evaluate the better performing scheme. The study help us to develop the
concept regarding the mutual funds, its understanding, performance and how to invest in the
mutual funds. Also, we came to know about differnce between the various investment
opportunities with respect to the mutual funds. We were able to know about the advantages and
the disadvantages of the mutual funds.
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5. Introduction
5.1 Concept of a Mutual Fund
A mutual fund is a trust registered with the Securities and Exchange Board of India (SEBI)
which pools up the money from individual/corporate investors and invests that on behalf of the
investors/units holders, in equity shares, government securities, bonds, call money market etc.
The income earned through these investments and the capital appreciations realized are shared
by its unit holders in proportion to the amount of units owned by them. This pooled income is
professionally managed on behalf the unit-holders, and every investor holds a proportion of the
portfolio.
Fig 5.1
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5.2 Operational flow of Mutual Fund
The following diagram depicts the operational flow of Mutual Fund
Fig 5.2
5.3 Parties to Mutual fund

The following diagram illustrates various entities involve in organizational structure of mutual
fund:
Fig 5.3
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Investors
Every investor, given his/her financial position and private disposition, features a certain
inclination to take risks. The hypothesis is that by taking an incremental risk, it'd be possible for
the investor to earn an incremental return. A mutual fund is a solution for investors who lack the
time, the inclination, or the talents to actively manage their investment risk in individual
securities. They delegate this role to the investment trust while retaining the right and therefore
the obligation to monitor their investments in the scheme. in the absence of a mutual fund option,
the money of such “passive” investors would lie either in bank deposits or other ‘safe’
investment options, thus depriving them of the chance of earning a stronger return. Investing
through a mutual fund would make economic sense for an investor if his/her investment, over
medium to long term, fetches a return that's more than what would otherwise have earned by
investing directly.
Sponsors
Sponsor is the company, which sets up the Mutual Fund as per the provisions laid down by the
Securities and Exchange Board of India (SEBI). SEBI mainly fixes the criteria of sponsors based
on sufficient experience, net worth, and past track record.
Asset Management Company (AMC)

The AMC manages the funds of the varied schemes and employs an outsized number of
executives for investment, research, and agent servicing. The AMC also comes out with new
schemes periodically. It plays a key role in the running of a fund and operates under the
supervision and guidance of the trustees. An AMC’s income comes from the management fees, it
charges for the schemes it manages. The management fees are calculated as a percentage of net
assets managed. An AMC should employ people and bear all the establishment costs that are
associated with its activity, like for the premises, furniture, computers and other assets, etc. As
long as the income through management fees covers its expenses, an AMC is economically
viable. SEBI has issued the following guidelines for the formation of AMCs:
i) An AMC should be headed by an independent non-interested and nonexecutive
chairman.
ii) The Managing Director and other executive staff should be full-time employees of
AMC.
iii) One-half of the board of trustees of AMC should be outside directors who aren't in
any way connected with the bank.
iv) The board of directors shall not be entitled to any remuneration aside from the sitting
fees.
v) The AMCs won't be permitted to conduct other activities like merchant banking or
issue management.
Trustees
Trustees are an important link in the working of any mutual fund. They are responsible for
ensuring that investors’ interests in a scheme are taken care of properly. They do this by constant
monitoring of the operations of the various schemes. In return for their services, they are paid
trustee fees, which are normally charged to the scheme.
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Distributors
Distributors earn a commission for bringing investors into the schemes of a mutual fund. This
commission is an expense for the scheme. Based on the financial and physical resources at their
disposal, the distributors could be:
a) Tier 1 distributors who have their own or franchised network reaching out to investors all
across the country; or
b) Tier 2 distributors who are generally regional players with some reach within their region; or
c) Tier 3 distributors who are small and marginal players with limited reach.
The distributors earn a commission from the AMC.
Registrars
An investor’s holding in mutual fund schemes is often tracked by the schemes’ Registrar and
Transfer Agent (R & T). Some AMCs favor to handle this role on their own rather than
appointing R & T. The Registrar or the AMC maintains an account of the investors’ investments
and disinvestments from the schemes. Requests to invest extra money into a scheme or to redeem
money against existing investments in a scheme are processed by the R & T.
Custodian/Depository
The custodian maintains custody of the securities within which the scheme invests. This ensures
an ongoing independent record of the investments of the scheme. The custodian also follows up
on various corporate actions, like rights, bonuses, and dividends declared by investee companies.
At present, when the securities are being dematerialized, the role of the depository for such an
independent record of investments is growing. No custodian within which the sponsor or its
associates hold 50 percent or more of the voting rights of the share capital of the custodian or
where 50 percent or more of the directors of the custodian represent the interest of the sponsor or
its associates shall act as custodian for a mutual fund constituted by the same sponsor or any of
its associates or subsidiary.
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5.4 Types of Mutual Fund Schemes
Mutual Fund schemes may be classified on the basis of its structure and investment objective.
Fig 5.4
Based on Structure:
Open-ended Funds
An open-ended fund is one that is available for subscription all through the year. These do not
have a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value (NAV)
related prices. The key feature of open-end schemes is liquidity.
Closed-ended Funds
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A closed-ended fund has a stipulated maturity period which generally ranges from three to
fifteen years. The fund is open for subscription only during a specified period. Investors can
invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the
units of the scheme on the stock exchanges where they are listed. In order to provide an exit
route to the investors, some close-ended funds give an option of selling back the units to the
Mutual Fund through periodic repurchase at NAV related prices.
Interval Funds
Interval funds combine the features of open-ended and close-ended schemes. They are open for
sale or redemption during pre-determined intervals at NAV related prices.
Based on Investment Objective:
Growth Funds
The aim of growth funds is to produce capital appreciation over the medium to long- term. Such
schemes normally invest a majority of their corpus in equities. Studies have shown that returns
from stocks have outperformed most other kinds of investments held over the long term. (Baruan
Varuan (1991), Obaidulla and Sridhar (1991), Adhikari and Bhosale (1994), Gupta and Sehgal
(1997), Sapar, Narayan R. and Madava, R. (2003), Rao, D. N. (2006)) concluded that growth
schemes are ideal for investors having a long-term outlook seeking growth over a period of time.
Income Funds
The aim of income funds is to provide a regular and steady income to investors. Such schemes
generally invest in fixed income securities such as bonds, corporate debentures, and Government
securities. Income Funds are ideal for capital stability and regular income.
Balanced Funds
The aim of balanced funds is to supply both growth and regular income. Such schemes
periodically distribute a component of their earning and invest both in equities and fixed income
securities in the proportion indicated in their offer documents. in a rising exchange, the NAV of
those schemes might not normally keep up, or fall equally when the market falls. These are ideal
for investors trying to find a mixture of income and moderate growth.
Money Market Funds

The aim of money market funds is to produce easy liquidity, preservation of capital and
moderate income. These schemes generally invest in safer short-term instruments like treasury
bills, certificates of deposit, commercial paper and inter-bank call money. Returns on these
schemes may fluctuate depending upon the interest rates prevailing within the market. These are
ideal for corporate and individual investors as a method to park their surplus funds for brief
periods.
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Others:
Tax Saving
These schemes offer tax rebates to the investors under specific provisions of the Indian income
tax laws because the Government offers tax incentives for investment in specified avenues.
Investments made in Equity Linked Savings Schemes (ELSS) and Pension Schemes are allowed
as deduction u/s 88 of the income tax Act, 1961. The Act also provides opportunities to investors
to save lots of capital gains u/s 54EA and 54EB by investing in Mutual Funds.
Sector Specific
Industry Specific Schemes invest only in the industries specified in the offer document. The
investment of these funds is limited to specific industries like InfoTech, Fast Moving Consumer
Goods (FMCG), and Pharmaceuticals etc.
Index
Index Funds attempt to replicate the performance of a particular index such as the BSE Sensex
or the NSE.
Sectoral
Sectoral Funds are those, which invest exclusively in a specified industry or a group of industries
or various segments such as 'A' Group shares or initial public offerings.
Exchange Traded Funds

Exchange-Traded Funds, (ETF) are similar to their mutual fund counterparts, also track indexes.
The difference is that the stocks of individual companies that comprise a given index are bundled
into an equity-like investment vehicle that's traded on an exchange, exactly like a stock meaning
that those purchasing ETF shares can place orders for them throughout the day, and even use
limit orders to form trades. Since they're traded on an exchange and share many of the attributes
of individual equities, ETFs may also be shorted and offer underlying options as an investment
opportunity.
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5.5 Advantages of Mutual Funds
which enables
Mutual Funds invest in an exceedingly well-diversified portfolio of securities
an investor to carry a diversified investment portfolio (whether the number
of investment is big or small)
investment
Fund manager undergoes through various research works and has better
management skills which ensure higher returns to the investor than what he
can manage on his own.
in a mutual
Investors acquire a diversified portfolio of securities even with a small investment
fund. The danger in a much diversified portfolio is lesser than investing in
merely 2 or 3 securities.
 Due to the economies of scale (benefits of larger volumes), mutual funds pay lesser
transaction costs. These benefits are passed on to the investors.
 An investor might not be able to sell a number of the shares held by him very easily and
quickly, whereas units of a mutual fund are far more liquid.
 Mutual funds provide investors with various schemes with different investment
objectives. Investors have the choice of investing in a scheme having a correlation
between its investment objectives and their own financial goals. These schemes further
have different plans/options.
 Funds provide investors with updated information regarding the markets and therefore
the schemes. All material facts are disclosed to investors as needed by the regulator.
 Investors also have the benefit of the convenience and flexibility offered by
Mutual Funds. Investors can switch their holdings from a debt scheme to an equity
scheme and vice-versa. The choice of systematic (at regular intervals) investment and
withdrawal are offered to the investors in most open-end schemes.
environment
The mutual fund industry is an element of a well-regulated investment
where the interests of the investors are protected by the regulator. All funds
are registered with SEBI and complete transparency is forced.
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5.6 Disadvantages of Mutual Funds
 The investor has to pay investment management fees and fund distribution costs as a
percentage of the worth of his investments (as long as he holds the units), regardless of the
performance of the fund.
 The portfolio of securities within which a fund invests is a decision taken by the
fund manager. Investors don't have any right to interfere in the decision-making process
of a fund manager, which some investors find as a constraint in achieving their financial
objectives.
funds/schemes/plans
Many investors find it difficult to pick one option from the plethora of
available. For this, they may have to take advice from financial
planners so as to invest in the right fund to attain their objectives.
5.7 Investment Strategies
1. Systematic Investment Plan:

Under this, a fixed sum is invested every month on a particular date of a month. Payment is done
through post-dated cheques or direct debit facilities. The investor gets fewer units when the NAV
is high and more units when the NAV is low. This referred to as the advantage of Rupee Cost
Averaging (RCA).
2. Systematic Transfer Plan:

Under this, an investor invests in a debt-oriented fund and gives instructions to transfer a fixed
sum, at a fixed interval, to an equity scheme of the same mutual fund.
3. Systematic Withdrawal Plan:

If someone wishes to withdraw from a mutual fund then he can withdraw a fixed amount each
month.
5.8 Organization of Mutual Funds Fig 5.5
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5.9 Need of the Study
The mutual fund industry is growing globally and new products are emerging in the market with
all captivating promises of providing a high return. It has become difficult for investors to decide
on the most effective fund for their needs or in other words to seek out a fund that will provide a
maximum return for minimum risk. Therefore, they turn to their financial advisor to urge precise
direct investment.
The thrust of Mutual Funds is the ‘safety of the principal’ guaranteed, plus the added advantage
of capital appreciation along with the income earned in the form of interest or dividend. The
varied schemes of Mutual Funds provide the investor with a wide range of investment options in
line with his risk bearing capacities and interest besides; they also give handy return to the
investor. Mutual Funds offer an investor to invest even a small amount of money; each mutual
fund has a defined investment objective and strategy. For today's intricate and modern financial
scenario, a mutual fund is the optimal investment option.
The study is largely made to investigate the various open-ended equity schemes of HDFC Asset
Management Company to focus on the diversity of investment that mutual fund offers. Thus,
through the study, one would understand how a common person could fruitfully convert a
meager amount into a good penny by wisely investing in the right scheme which is in line with
his risk-taking abilities. This study makes use of various risk adjusted measures such as Sharpe
Ratio, Treynor Ratio, Jensen’s Alpha and Fama measure to evaluate the performance of the
aforementioned mutual fund schemes. Sharpe ratio is a performance measure, which reflects the
surplus return earned on a portfolio per unit of its total risk (standard deviation). Treynor
measure is a performance metric to evaluate the excess return produced for each risk unit taken
by a portfolio. While Jensen's alpha talks about the deviation of the actual return from it’s
expected one. Fama measure decomposes the portfolio’s total return into two main components:
systematic return and also the unsystematic return. It specifies whether or not the portfolio is
fully diversified. Hence, it's an important measure to gauge the performance of the fund
manager.
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5.10 Objectives of the Study
(i) To study whether the growth oriented mutual funds are earning higher returns
than the benchmark returns in terms of risk.
(ii) To appraise the performance of selected mutual funds using risk adjusted
measures such as Sharp Ratio, Treynor Ratio, Standard Deviation (SD), Jensen’s
Alpha and Fama measure.
(iii) To provide a proper investigation for logical and reasonable comparison and selection
of the funds.
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5.11 Scope of the Study
The present study is comprised of 4 mutual fund schemes offered by HDFC mutual fund. The
time period of this research work is from 1st January 2020 to 30th September 2020. The study
investigates the risk-return analysis of these selected schemes only. The risk-return analysis is
done through various tools such as standard deviation, Beta, R squared, Sharpe ratio, Treynor,
and Jensen. The benchmark indexes which have been used in the study are S&P BSE
SENSEX and NIFTY50. The schemes have been compared with the benchmark return to
evaluate the performance of these schemes. The schemes are:
HDFC Equity Fund Growth option
HDFC Capital Builder Fund
HDFC Tax Saver Fund
HDFC Top 200 Fund
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5.12 Limitations of the Study
(i) The study is limited only to the analysis of only four mutual fund schemes offered
by HDFC mutual fund.
(ii) The study is based on the secondary data including books, journals, periodicals,
publication of various mutual fund organizations, website of AMFI, website of
SEBI, government publications and websites of various mutual fund companies.
(iii) Since the study is based on only four schemes hence generalization is not possible.
(iv) The study excludes the exit loads of the mutual funds.
(v) Banks are free to accept deposits at any interest rate within the ceilings fixed by
the Reserve Bank of India and interest rate can vary from client to client. Hence,
there can be inaccuracy in the risk free rates.
(vi) The performance analysis is done for a short period of time ranging only 8 months
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6. Literature Review
6.1 Literature Review
The present study deals with ‘risk-return analysis of mutual funds’. A number of studies on
analyzing the Indian mutual fund Schemes have been conducted and were taken into
consideration. A review of a number of the studies is presented in the following discussion:
Shukla, S. (2015) studied the performance of selected mutual fund schemes under five different
categories in order to look at the return from the selected mutual funds. Performance
measurement was done through standard deviation, Beta, Alpha, R squared, Sharpe ratio. The
study concluded that all the funds are having a positive correlation with Nifty.
Ramanujam, V, Bhuvaneswari, A (2015) conducted a study on Growth and Performance of

Indian Mutual Fund Industry during Past Decade to analyze Growth of Asset Under
Management, analyze the growth of Asset under Management Institution Wise, examine Sector
wise mutual fund sales and mutual fund redemption, analyze the Scheme wise resource
mobilization by mutual fund, examine the total number of Schemes and Number of folios. The
study concluded Private sector has increased their asset base manifold. The asset under
management has shown growth in all the sectors.
Alekhya (2012) evaluated the performance of the Indian Mutual fund equity scheme of 3 years
past data from 2009 to 2011. The study used Beta as a measurement of sensitivity to market
fluctuations. The study ranked the funds and theoretical parameters as suggested by Sharpe,
Treynor, and Jensen. The study evaluated the Equity Fund Dividends, Growth and Balanced
Fund Dividends, Growth fund. The study identified that the SBI fund is placed ranked First
according to the analysis.
Agrawal, G.,Jain, M.(2013) studied the Investor’s preference towards mutual fund in
comparison to other investment avenues to find out the most preferred Investment Avenue of the
investors of Mathura, to analyze the investor’s preference towards investment in mutual funds
when other investment avenues are also available in the market, to find the main bases of
different investment avenues, an investor thinks before investing and to find out the overall
criterion of investors regarding investment. The study concluded that Maximum investors are
aware about Banks & LIC investment avenues only. Return is the main criterion of investors
regarding their investments.
Burlakan, K. Chiruvoori, R.V. (2013) studied the performance evaluation of select equity
funds in India in order to analyze Risk and Returns of select equity funds and to evaluate equity
funds and suggest investors about outperforming funds. Average Growth Rate, Compounded
Annual Growth Rate, Standard Deviation, Beta, Sharpe Index model and Treynor model were
used in the study. The study concluded that mutual funds are best option for small investors.
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Chawala, P.S. (2014) in their study Performance evaluation of mutual funds: A study of selected
diversified equity mutual funds in India analyzed performance of selected diversified equity
mutual funds in India and compared the performance of selected diversified equity mutual funds
in India. Standard deviation, Beta, Coefficient of determination was used measuring the
performance and the study concluded that majority of funds selected for study have
outperformed under Sharpe Ratio as well as Treynor Ratio.
Kaur, R. (2014) studied Performance evaluation of debt mutual fund schemes in India to
examine the risk and return component among these mutual funds, to study the relationship
between NAV and market portfolio return (BSE Sensex) and to evaluate the return of these
mutual funds according to the Fama’s model. Tools such as arithmetic mean, standard deviation,
beta, co-efficient of determination, Sharpe, Treynor, Jensen Alpha and Fama’s Measure were
used. The study concluded that Open-ended debt mutual funds have not performed better than
the benchmark indicators and average return of the schemes is less than the market index.
Kumar, V. (2011) studied performance evaluation of open ended schemes of mutual funds to
examine the funds sensitivity to the market fluctuation in the terms of Beta and to appraise the
performance of mutual funds with regard to risk-return adjustment, the model suggested by
Sharp, Treynor and Jensen. Tools such as return, standard deviation, coefficient of
determination, Beta, Sharpe ratio, Treynor ratio, and Jenson’s measures were used. It concluded
that Future of Mutual Funds in India has lot of positive things. Competition between private and
public players is increasing.
Mishra, R. (2015) did a study on Perceptions of Investors towards Mutual Funds: An Analytical
Study in Odisha To explore the important aspects of Mutual Funds affecting the perception of
mutual fund investors and examine the difference of perception of large and small mutual fund
investors on the basis of the explored aspects of mutual funds. Descriptive statistics, exploratory
factor Analysis and‘t’ test was used. It concluded that Mutual funds are looked upon as a
transparent and low cost investment vehicle and return and future respective are important
factors.
Narayanasam Y, R. Rathnamani, V. (2013) in their study Performance Evaluation of Equity

Mutual Funds (On Selected Equity Large Cap Funds) to study the performance of a growth
scheme of a selected mutual funds to examine the return from the selected mutual fund to know
whether the mutual funds are able to provide reward to variability and volatility and to identified
security market return with fund return. Standard deviation, Beta, Alpha, R squared, Sharpe ratio
was used in the study. The study concluded that all the funds have performed well in the high
volatile market.
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Usharani, M. (2012) in their study A study on investment avenues with particular reference to
mutual fund To study the socioeconomic profile of select individual investors to assess their
saving objectives ,to identify the preferred savings avenue of the Respondents, to identify their
preferred mutual scheme. The study concluded that Risk free returns are more preferred and
majority of the respondents prefer growth scheme and income scheme.
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7. Research Methodology
7.1 Research Design
For this research study, a descriptive research design has been applied for detailed performance
analysis of mutual fund schemes. This research design is best suited for this study due to its
exhaustive nature. The Methodology evaluates the selected Open-Ended equity schemes of
HDFC mutual fund for the purpose of risk-return analysis of the.
7.2 Data Collection
The data collected for this study is mainly from secondary sources including the monthly fact
sheets of HDFC AMC fund house and research reports from banks. The NAVs of the funds
have been taken from AMFI websites for the period of 1st Jan 2020 to 30th September 2020.
For the Benchmark prices, data has been taken from BSE and NSE websites.
7.3 Data Analysis Tools
The analysis has been done using the following tool:
1. Simple measure of returns: Rt= (NAVt- NAVt-1)/NAVt-1.

Where,
Rt is the return in month t.
NAVt is the closing net asset value of the fund on the last trading day of the month.
NAVt-1 is the closing net asset value of the fund on the last day of the previous month.
2. Standard deviation: S.D. =√1/T× (Rt-AR) 2

Where,
S.D. is the periodic standard deviation,
AR is the average periodic return,
T is the number of observations in the period for which the standard deviation is
being calculated.
Rt is the return in month t
3. Beta analysis :)  (Beta) Co-efficient = [N (∑ XY) – ∑ X ∑Y]/ [N (∑ X2) – (∑ X) 2]
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4. Sharpe Ratio (Si) = (Ri - Rf)/Si
Where,
Si is standard deviation of the fund,
Ri represents return on fund, and
Rf is risk free rate of return.
5. Treynor's Index (Ti) = (Ri - Rf)/Bi

Where,
Ri represents return on fund,
Rf is risk free rate of return, and
Bi is beta of the fund.
6. Jenson Model: E (Ri) = Rf + Bi (Rm - Rf)

Where,
E (Ri) represents expected return on fund, and
Rm is average market return during the given period,
Rf is risk free rate of return, and
Bi is Beta deviation of the fund
αp= Ri –[ Rf + Bi (Rm - Rf) ]
7. Fama Model:
Net Selectivity = (Ri – Rf)-{(σp/ σm) (Rm–Rf)}
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8. Data Analysis and Interpretation
8.1 Data Analysis
8.1.1 HDFC Equity Fund-Growth Option
Investment Objective: To generate capital appreciation/income from a portfolio, predominantly

invested in equity and equity related instruments.
Table 8.1
Fund House HDFC Mutual Fund
Launch Date 01-Jan-1995
Return Since Launch 17.45%
Benchmark NIFTY 500 TRI
Risk Moderately High
Type Open-ended
Assets Under Management ₹ 18,446 Cr
Expense ratio 1.87%
No of Stocks 49
Fund Manager Mr. Prashant Jain
Asset Allocation (HDFC Equity Fund)
Equity (99.6)
Debt(0.04)
Others(0.00)
Fig 8.1
Benchmark Index: NIFTY50TRI

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HDFC EQUITY FUND-GROWTH OPTION
Table 8.2
2 2
Month NAV NIFTY50 Ri Rm RiRm Rm-Rmav (Rm-Rmav) Rm
JAN 2020 659.652 16790.45
FEB 607.166 15726.92 -7.9566 -6.3341 50.3983 -6.28888 39.5499974 40.1213
MAR 457.735 12105.66 -24.611 -23.026 566.695 -22.9806 528.108506 530.191
APR 519.905 13884.18 13.5821 14.6916 199.543 14.7369 217.176151 215.844
MAY 499.566 13503.45 -3.9121 -2.7422 10.7276 -2.69693 7.27342177 7.51958
JUN 534.169 14527.18 6.92661 7.58125 52.5124 7.626505 58.1635824 57.4753
JUL 558.598 15645.34 4.57327 7.69702 35.2006 7.742278 59.9428662 59.2441
AUG 589.11 16110.07 5.46225 2.97041 16.2251 3.015663 9.09422179 8.82331
SEP 558.083 15916.72 -5.2668 -1.2002 6.32106 -1.15492 1.3338483 1.44043
Total -11.202 -0.3621 4.05594 0 920.642595 920.659
Average -1.4003 -0.0453 0.50699 0 115.080324
Mean Deviation (σ m) = √115.080324
= 10.72755
Beta  = 0.96(Source: https://www.moneycontrol.com)
Risk-free Rate= 5.88% (10-Year Government Bond Yield)
RETURN OF FUND PORTFOLIO AND MARKET PORTFOLIO
20
15
10
5
0
FEB MAR APR MAY JUN JUL AUG SEP Portfolio Return
-5
Market Return
-10
-15
-20
-25
-30
Fig 8.2
31 | P a g e
Table 8.3
Month NAV NIFTY50 Ri Rm Ri-Rm σ σ2
JAN 659.652 16790.45
FEB 607.166 15726.92 -7.9566 -6.3341 -1.6225 -0.2675 0.07154725
MAR 457.735 12105.66 -24.611 -23.026 -1.5854 -0.2304 0.05306461
APR 519.905 13884.18 13.5821 14.6916 -1.1095 0.24545 0.06024783
MAY 499.566 13503.45 -3.9121 -2.7422 -1.1699 0.18512 0.03427121
JUN 534.169 14527.18 6.92661 7.58125 -0.6546 0.70036 0.49051049
JUL 558.598 15645.34 4.57327 7.69702 -3.1237 -1.7687 3.12847157
AUG 589.11 16110.07 5.46225 2.97041 2.49184 3.84684 14.798188
SEP 558.083 15916.72 -5.2668 -1.2002 -4.0666 -2.7116 7.35265159
Total -11.202 -0.3621 -10.84 25.9889526
Average -1.4003 -0.0453 -1.355 3.24861908
Standard Deviation for the fund’s excess return (S.D.) σi = √ 3.2486
= 1.8024
Sharpe Index (Si) = (Ri - Rf)/ σ
= (-1.4003-5.88)/1.8024
= -3.23438
= (-1.4003-5.88)/0.96
= -7.58365
Jensen alpha (α) = Ri – [Rf +  (Rm - Rf)]
32 | P a g e
= -1.4003-[5.88+0.96(-0.0453-5.88)
= -1.592012
Expected return E (Ri) = Rf +  (Rm - Rf)
=5.88+0.96(-0.0453-5.88)
= 0.191712
Fama Measures:
= (-1.4003-5.88)-{(1.8024/10.72755) (-0.0453-5.88)}
= -6.32485
33 | P a g e
8.1.2 HDFC Capital Builder Value Fund – Growth Option
Investment Objective: To achieve capital appreciation/income in the long term by primarily

investing in undervalued stocks.
Table 8.4
Launch Date 01 Feb 1994
Type Open-ended
Assets Under Management ₹ 3,924.46 Cr
Expense Ratio 2.10%
Number of Stocks 68
Fund Manager Mr. Amit Ganatra
Asset Allocation (HDFC Capital Builder Value Fund - Growth Option)
Equity (97.80%)
Debt (2.20%)
Others (0.00%)
Fig 8.3
34 | P a g e
HDFC Capital Builder Value Fund - Growth Option
Table 8.5
2 2
NIFTY50 Ri Rm RiRm Rm-Rmav (Rm-Rmav) Rm
16790.45
15726.92 -6.518199 -6.334136 41.28716 -6.28888 39.54999955 40.1213
12105.66 -26.17177 -23.02587 602.6278 -22.9806 528.1085136 530.191
13884.18 14.685243 14.69164 215.7503 14.7369 217.1761462 215.844
13503.45 -1.863158 -2.742186 5.109125 -2.69693 7.273422683 7.51958
14527.18 7.3518825 7.581248 55.73644 7.626505 58.16357984 57.4753
15645.34 8.0977005 7.69702 62.32817 7.742278 59.9428636 59.2441
16110.07 3.5623569 2.970405 10.58164 3.015663 9.094220776 8.82331
15916.72 0.4242317 -1.200181 -0.509155 -1.15492 1.333848691 1.44043
-0.431714 -0.362059 992.9115 920.6425949 920.659
-0.053964 -0.045257 124.1139 115.0803244
= 10.72755
RETURN OF FUND PORTFOLIO AND MARKET PORTFOLIO
20
15
10
5
0
-5 JAN FEB MAR APR MAY JUN JUL AUG Portfolio Return
-10 Market Return
-15
-20
-25
-30
35 | P a g e
Fig 8.4
Table 8.6
2
Month NAV NIFTY50 Ri Rm Ri-Rm σ σ
JAN 284.327 16790.45
FEB 265.794 15726.92 -6.518199 -6.334136 -0.1840627 -0.1753558 0.030749647
MAR 196.231 12105.66 -26.17177 -23.02587 -3.1459031 -3.1371961 9.841999567
APR 225.048 13884.18 14.68524 14.69164 -0.0063967 0.0023103 0.000005337
MAY 220.855 13503.45 -1.863158 -2.742186 0.87902763 0.8877346 0.788072724
JUN 237.092 14527.18 7.351882 7.5812478 -0.2293653 -0.2206583 0.048690096
JUL 256.291 15645.34 8.0977 7.6970203 0.40068013 0.4093871 0.167597798
AUG 265.421 16110.07 3.562357 2.9704052 0.59195161 0.6006586 0.36079073
SEP 266.547 15916.72 0.424232 -1.200181 1.6244127 1.6331197 2.667079858
Total -0.431714 -0.362059 -0.0696558 13.90498576
Average -0.053964 -0.045257 -0.008707 1.73812322
Standard Deviation for the fund’s excess return (S.D.) σi = √1.73812322
= 1.3184
= (-0.053964-5.88)/ 1.3184
= -4.5009
Treynor's Index (Ti) = (Ri - Rf)/
-0.053964-5.88)/0.97
= -6.117489
Jensen alpha (α) = Ri – [Rf +  (Rm - Rf)] =-0.053964-
[5.88+0.97(-0.045257-5.88)] =
-0.186464
=5.88+0.97(-0.045257-5.88)
= 0.1325
36 | P a g e
Fama Measures:
= (-0.053964-5.88) - {(1.3184/10.72755) (-0.045257-5.88)
=-5.205809167
37 | P a g e
8.1.3 HDFC Tax Saver Fund-Growth
Investment Objective: To generate capital appreciation/income from a portfolio, comprising

predominantly of equity & equity related instruments.
Table 8.7
Launch Date March 31, 1996
Type Open-ended
Assets Under Management ₹ 6648.70Cr
Expense Ratio 2.02%
Number of Stocks 60
Fund Manager Mr. Amit B Ganatra
Asset Allocation (HDFC Tax Saver Fund - Growth)
Equity(98.39%)
Debt(1.61%)
Others(0.00%)
Fig 8.5
38 | P a g e
HDFC TAX SAVER FUND – GROWTH
Table 8.8
2 2
Month NAV NIFTY50 Ri Rm RiRm Rm-Rmav (Rm-Rmav) Rm
JAN 508.297 16790.45
FEB 467.339 15726.92 -8.057887 -6.334136 51.039758 -6.28887904 39.54999955 40.12128
MAR 355.75 12105.66 -23.87753 -23.02587 549.80083 -22.9806117 528.1085136 530.1906
APR 406.976 13884.18 14.399438 14.69164 211.55136 14.73689744 217.1761462 215.8443
MAY 397.487 13503.45 -2.331587 -2.742186 6.3936449 -2.69692838 7.273422683 7.519582
JUN 424.855 14527.18 6.8852566 7.581248 52.198836 7.626505087 58.16357984 57.47532
JUL 448.071 15645.34 5.4644526 7.69702 42.060003 7.742277675 59.9428636 59.24412
AUG 469.739 16110.07 4.8358407 2.970405 14.364407 3.015662577 9.094220776 8.823307
SEP 452.506 15916.72 -3.668633 -1.200181 4.4030236 -1.15492367 1.333848691 1.440434
Total -6.350648 -0.362059 931.81186 920.6425949 920.659
Average -0.793831 -0.045257 116.47648 115.0803244
= 10.72755
39 | P a g e
Fig 8.6
Table 8.9
2
Month NAV NIFTY50 Ri Rm Ri-Rm σ σ
JAN 508.297 16790.45
FEB 467.339 15726.92 -8.057887416 -6.33413637 -1.723751 -0.9752 0.950971002
MAR 355.75 12105.66 -23.87752788 -23.025869 -0.851659 -0.1031 0.010626565
APR 406.976 13884.18 14.39943781 14.6916401 -0.292202 0.45637 0.208274786
MAY 397.487 13503.45 -2.331587121 -2.74218571 0.410599 1.15917 1.343680227
JUN 424.855 14527.18 6.885256625 7.58124776 -0.695991 0.05258 0.002764919
JUL 448.071 15645.34 5.464452578 7.69702034 -2.232568 -1.484 2.202238607
AUG 469.739 16110.07 4.835840748 2.97040525 1.865436 2.61401 6.833043729
SEP 452.506 15916.72 -3.668633007 -1.200181 -2.468452 -1.7199 2.957981627
Total -6.350647661 -0.36205865 -5.988589 14.50958146
Average -0.793830958 -0.04525733 -0.748574 1.813697683
Standard Deviation for the fund’s excess return (S.D.) σi = √1.813697683 =
1.3467
= (-0.793831-5.88)/ 1.3467
= -4.9557
-0.793831-5.88)/0.96
= -6.95191
[5.88+0.96(-0.045257-5.88)] =-
0.985584238
=5.88+0.96(-0.045257-5.88)
= 0.19175328
40 | P a g e
Fama Measures:
= (-0.793831-5.88) - {(1.3467/10.72755) (-0.045257-5.88)
= -5.929994465
41 | P a g e
8.1.4 HDFC Top 100 Fund-Growth
Investment Objective: To provide long-term capital appreciation/income by investing

predominantly in Large-Cap companies.
Table 8.10
Launch Date October 11, 1996
Type Open-ended
Assets Under Management ₹ 15,922 Cr
Expense ratio 2.03%
No of Stocks 51
Fund Manager Mr. Prashant Jain
Asset Allocation (HDFC Top 100 Fund- Growth)
Equity (99.27%)
Debt (0.73%)
Others(0.00%)
Fig 8.7
42 | P a g e
HDFC TOP 100 FUND- Growth
Table 8.11
2 2
NAV NIFTY50 Ri Rm RiRm Rm-Rmav (Rm-Rmav) Rm
486.309 15553.18
447.436 14569 -7.9934774 -6.327838 50.5814 -6.2806786 39.44692414 40.041531
344.774 11271.15 -22.94451 -22.63608 519.374 -22.588917 510.2591919 512.391964
390.874 12919.55 13.3710779 14.62495 195.551 14.6721087 215.2707732 213.889149
377.777 12610.56 -3.3506961 -2.391647 8.01368 -2.3444876 5.496622224 5.71997426
403.367 13556.26 6.77383748 7.4992705 50.7988 7.5464296 56.94859964 56.2390573
425.299 14536.29 5.4372321 7.2293538 39.3077 7.27651296 52.94764088 52.2635566
441.927 14908.21 3.90971999 2.5585621 10.0033 2.6057212 6.789782956 6.54623978
422.143 14768.99 -4.4767575 -0.933848 4.18061 -0.8866887 0.78621688 0.87207183
-9.2735741 -0.377273 877.811 887.9457518 887.963544
-1.1591968 -0.047159 109.726 110.993219
= 10.53533194
43 | P a g e
Fig 8.8
Table 8.12
Month NAV NIFTY50 Ri Rm Ri-Rm σ σ2
JAN 486.309 15553.18
FEB 447.436 14569 -7.993477 -6.3278378 -1.665639618 -0.553602 0.30647518
MAR 344.774 11271.15 -22.94451 -22.636077 -0.308433899 0.8036037 0.64577894
APR 390.874 12919.55 13.371078 14.6249495 -1.253871674 -0.141834 0.0201169
MAY 377.777 12610.56 -3.350696 -2.3916468 -0.959049364 0.1529883 0.02340541
JUN 403.367 13556.26 6.7738375 7.49927045 -0.725432977 0.3866046 0.14946315
JUL 425.299 14536.29 5.4372321 7.22935382 -1.79212172 -0.680084 0.46251439
AUG 441.927 14908.21 3.90972 2.55856205 1.351157931 2.4631955 6.06733231
SEP 422.143 14768.99 -4.476757 -0.9338479 -3.542909614 -2.430872 5.90913867
Total -9.273574 -0.3772731 -8.896300935 13.5842249
Average -1.159197 -0.0471591 -1.112037617 1.69802812
Standard Deviation for the fund’s excess return (S.D.) σi = √1.69802812
= 1.3031
= (-1.159197-5.88)/ 1.3031
= -5.4019
-1.159197-5.88)/0.96
= -7.3325
[5.88+0.96(-0.0471591-5.88)] = -1.3492
=5.88+0.96(-0.0471591-5.88)
= 0.18993
44 | P a g e
Fama Measures:
= (-1.159197-5.88) - {(1.3031/10.5353) (-0.0471591-5.88)
= --6.306073027
45 | P a g e
8.2 Interpretation
Table 8.13
FUND σ m σi  Sharpe Treynor Jensen’s Fama
NAME ratio ratio Alpha Measure
HDFC 10.727 1.8024 0.96 -3.234 -7.584 -1.592 -6.325
Equity
Fund
HDFC 10.727 1.3184 0.97 -4.5 -6.117 -0.186 -5.206
Capital
Builder
Fund
HDFC 10.727 1.3467 0.96 -4.956 -6.951 -0.985 -5.93
Tax
Saver
HDFC 10.535 1.3031 0.96 -5.402 -7.332 -1.3492 -6.306
Top100
Standard Deviation:
Standard deviation can help us understand the consistency of an investment's return over time. A
fund with a high standard deviation shows price volatility while a fund with a low standard
deviation tends to be more predictable. In this study for HDFC Equity Fund, HDFC Capital
Builder Fund and HDFC Tax Saver fund NIFTY50 has been taken as a benchmark index while
NIFTY100 has been taken as a benchmark. The study shows that all the schemes selected for the
study have less standard deviation than benchmark index which implies that all the schemes are
less risky than the benchmark index. However HDFC Equity Fund has shown a slightly higher
standard deviation than the other three schemes. HDFC Top100 is the least risk fund according
to this study.
Beta:
Beta indicates the volatility against the benchmark index. The index benchmark has a beta of 1
and all the individual funds are ranked in accordance with their deviation from the benchmark
standard. The stock that deviates very little from the market doesn’t add a lot of risk to a fund but
it also doesn’t increase the potential for greater returns. The study showed that all the funds have
a beta of close to 1 hence showing that the stocks are less volatile than the market but at the same
time matching with the performance of the index. The study illustrates that the HDFC capital
builder fund’s beta is closest to 1.
46 | P a g e
Sharpe Ratio:
Sharpe ratio defines an investment’s risk-return relationship. A higher Sharpe ratio indicates a
better fund‘s return relative to the amount of risk taken. This study shows that all the selected
mutual fund schemes have a negative sharp ratio which indicates that the fund is poorly risk -
adjusted. Furthermore, the study shows that HDFC Top100 has the lowest Sharpe Ratio and
HDFC Equity Fund has a lesser negative Sharpe Ratio. The lesser negative Sharpe Ratio of
HDFC Equity Fund is justified by its highest standard deviation
Treynor Ratio:
The Treynor ratio gauges the excess return generated per unit of risk taken. The risk in this ratio
refers to the systematic risk which is measured using Beta. The above study shows that all the
selected mutual fund schemes have a negative Treynor Ratio which means that the schemes have
performed worse than the risk-free instruments in this case a 10-year Govt Bond Yield. HDFC
Capital Builder Fund has a better Treynor ratio when compared to all the other selected mutual
fund schemes.
Jensen’s Alpha:
Jensen’s Alpha explains whether an investment has performed better or worse than its beta. It
includes an evaluation of the returns that the fund has generated versus the returns actually
expected out of the fund given the level Beta. A higher alpha value indicates the superior
performance of the fund while a negative Alpha value indicates that the fund has performed
worse than expected. The aforementioned study shows that all the selected mutual fund schemes
have negative Alpha values which mean they have not achieved the expected return given the
level of their systematic risk. However, HDFC Capital Builder Fund has performed better when
compared to other selected schemes.
Fama Measure:
The Net Selectivity illustrates the fund manager's stock selection efficiency. It is the excess
return beyond the return necessary to compensate for the overall risk taken by the fund manager.
The higher value represents that the fund manager has earned well above the return in proportion
with the level of risk. The study shows that all the mutual fund schemes have negative net
selectivity because of higher systematic risk and unsystematic risk. This simply implies that the
the diversification is not working in these mutual fund schemes. The excess fund which could
nullify the risk are absent in all the aforementioned mutual fund schemes.
47 | P a g e
9. Findings
9.1 Findings
 The study reveals that all the mutual fund schemes have underperformed during the
period of this study. The study was a short term for a period of 2 months.
 The underperformance could be explained by the spread of the pandemic COVID -19.
The pandemic lead to the increase in the systematic risk which is evident from the data
analysis wherein every mutual fund failed to generate an excess return to nullify
systematic risk.
 The study also reveals that among the selected four mutual fund schemes HDFC Capital
Builder Fund-Growth has comparatively performed better than other schemes since it has
better Treynor’s Ratio, Jensen’s Alpha, and Fama measure. This fund is well diversified
and has earned relatively good returns keeping into consideration the spread of pandemic.
 The study revealed that investment choices can made on the basis of expected risk and
returns backed by the relationship shown by various measures used in the study.
48 | P a g e
9.2 Recommendations
 The HDFC Equity Fund and HDFC Top 100 fund managers can boost investor returns by
increasing the systemic risk of the portfolio, which can in turn be accomplished by
recognizing volatile stocks. Likewise, they can take advantage of diversification which
reduces the risk if the same return is given to the investor at a reduced risk level
 The fund manager of HDFC Capital Builder Fund can generate better returns by adopting
the marketing timing approach and selecting the underpriced stocks
 These measures used in the study are more useful to investors who are putting their
money into one diversified fund and are able to use leverage or invest in the risk -free
asset. When the investor is investing in different funds, the fund’s marginal contribution
to the portfolio’s risk and return is more important than its individual security
characteristics.
 While investing in mutual funds it is recommended to rely on other measures such as

expertise, new projects, sector impact, individual preferences instead of going ahead only
on the basis of risk and return.
 This study is based on historical data and shows the trend of past performance and does
not necessitate that the funds will perform the same in the future.
49 | P a g e
9.3 Conclusion
The growing popularity of Mutual Funds has highlighted their importance as an important
investment opportunity. Asset Management Companies pool money from small investors and
invest it in different stocks in order to give better returns to the investors. The growing size of
mutual fund industry has made it important to evaluate the performance of mutual fund schemes
in order to provide investors the information regarding risk and return. The performance analysis
has attracted a lot of attention and is preferred by every investor. This study gives an insight in
the risk-return analysis and comparative study of selected mutual fund schemes. In this study
four mutual fund schemes of HDFC Mutual Fund have been evaluated using various measures
such as Sharpe Ratio. Trenyor Ratio, Jensen’s Alpha and Fama measure in order to get a clear
picture of their performance in terms of return and risk analysis, and risk adjusted performance.
This study also draws a comparison between these schemes on the basis the aforementioned
measures. The study also utilized benchmark index like NIFTY50 and NIFTY100 for benchmark
th
values. The study is conducted for a period of 1 month from 5 th May 2021 to 5 June 2021. The
study has also highlighted the importance of risk -return and risk adjusted analysis of mutual
funds.
50 | P a g e
10. References
Analytical
Mishra, R. (2015). Perceptions of Investors towards Mutual Funds: An
Study in Odisha. International Journal on Recent and Innovation Trends in
Computing and Communication, 3(7), 4889-4892.
Retrieved from
http://www.ijritcc.org/download/1438244961.pdf
mutual Shukla, S. (2015). A comparative performance evolution of selected

funds. International Journal of Science Technology & Management, 4(2),
140-149 Retrieved from
http://www.ijstm.com/images/short_pdf/M026.pdf
 Ramanujam, V., & Bhuvaneswari, A. (2015). Growth and Performance of Indian

Mutual Fund Industry during Past Decades. International Journal of AdvanceResearch in
Computer Science andManagement Studies.3 (2) 283-290.
Retrieved from
http://www.ijarcsms.com/docs/paper/volume3/issue2/V3I2-0059.pdf
 Kaur,R.(2014). Performance evaluation of debt mutual fund schemes in

India. International Interdisciplinary Research Journal.2 (2), 180-192.
Retrieved from
http://indianresearchjournals.com/pdf/IJSS IR/2013/May/7.pdf
 Agrawal, G., & Jain, M. (2013). Investor’s Preference towards Mutual Fund In
Comparison To Other Investment Avenues. Journal of Indian research 1(4), 115-
131. Retrieved from
http://mujournal.mewaruniversity.in/JIR%201-4/15.pdf
Mutual Narayanasamy, R., & Rathnamani, V. (2013). Performance Evaluation of Equity

Funds (on Selected Equity Large Cap Funds). Journal of Business and
Management Invention, 18-24.
Retrieved from http://www.ijbmi.org/papers/Vol(2)4/version-
2/C241824.pdf
 Burlakan, K. Chiruvoori, R.V. (2013). Performance evaluation of select equity funds in

India. International Journal of Social Science & Interdisciplinary Research.2 (5), 69 -78.
Retrieved from
http://indianresearchjournals.com/pdf/IJSSIR/2013/May/7.pdf
 Usharani, M. (2012). A study on investment avenues with particular reference to

mutual fund. Excel International Journal of Multidisciplinary Management Studies, 2(1),
(286-294)
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Retrieved from
http://zenithresearch.org.in/images/stories/pdf/2012/Jan/EIJMMS/24%20_EIJMMS_VOL2_ISSUE1.pdf
 Kumar, V. (2011). Performance evaluationof open ended schemes of

mutual funds.International Journal of MultidisciplinaryResearch, 1(8),
(428-446).
Retrieved from
http://zenithresearch.org.in/images/stories/pdf/2011/Dec/zijmr/36_VOL%201_ISSUE8_ZEN.pdf

Choudhary, V., & Chawla, P. S. Performance Evaluation of Mutual Funds: A Study of
Selected Diversified Equity Mutual Funds in India.
https://doi.org/10.15242/ICEHM.ED1014025

HDFC Asset Management Company Management Information - Details of HDFC Asset
Management Company Management - The Economic Times.
Retrieved from https://economictimes.indiatimes.com/hdfc-
asset-management
companyltd/infocompanymanagement/companyid-14723.cms

HDFC Mutual Fund - Mutual Funds India - SIP Investment - Mutual Fund Investment.
Retrieved from
https://www.hdfcfund.com/
 HDFC Mutual Funds - Best Schemes, HDFC MF NAV, Performance & Returns
2019.
Retrieved, from
https://cleartax.in/s/hdfc-mutual-fund
 HDFC Top 100 Fund - Large Cap Mutual Funds - HDFC Mutual
Fund. Retrieved from https://www.hdfcfund.com/our-products/hdfc-top-
100-fund
 HSBC Mutual Fund – Mutual Fund Investment | PersonalFN.
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Certificate

COMAPARATIVE STUDY OF SELECT MUTUAL FUNDS”, submitted to Department of

award of the degree of Masters Of Business Administration FM, is a record of original

Fellowship or any other similar title of any candidate of any university.

Prof. Dr. Iqbal Hakeem

We hereby declare that the project entitled “RISK-RETURN ANALYSIS AND

COMAPARATIVE STUDY OF SELECT MUTUAL FUNDS” submitted for the partial

any degree, associateship, fellowship or any other similar titles.

done in the past segments.

valuable time and suggestions.

which helped us in completion of this project.

Table No. Particulars Page No.

8.1 HDFC Equity Fund Growth Option Portfolio Details 30

8.2 HDFC Equity Fund Growth Option S.D(Market) 31

8.5 HDFC Capital Builder Value Fund S.D(Market) 35

8.8 HDFC Tax Saver Fund Growth S.D (Market) Calculation 39

8.9 HDFC Tax Saver Fund S.D Growth (Portfolio) Calculation 40

8.10 HDFC TOP 100 FUND Growth Portfolio Details 42

8.11 HDFC TOP 100 FUND S.D (Market) Calculation 43

8.12 HDFC TOP 100 FUND S.D (Portfolio) Calculation 44

8.13 Comparison of Ratios 46

Figure No. Particulars Page No.

5.1 Concept of Mutual Fund 12

5.2 Operational Flow of Mutual Fund 13

5.3 Parties to Mutual Fund 13

5.4 Types of Mutual Fund Schemes 16

5.5 Organization of Mutual Funds 20

8.1 Asset Allocation (HDFC Equity Fund) 30

8.2 Return of Fund Portfolio and Market Portfolio (HDFC 31

8.4 Return of Fund Portfolio and Market Portfolio (HDFC 35

8.6 Return of Fund Portfolio and Market Portfolio (HDFC 39

8.8 Return of Fund Portfolio and Market Portfolio (HDFC 43

RBI Reserve Bank of India

ADB Asian Development Bank

AMFI Association of Mutual Funds in India

BSE The Stock Exchange, Mumbai

AMC Asset Management Company

CRR Cash Reserve Ratio

CAGR Compound annual growth rate

SEBI Securities and Exchange Board of India

AUM Asset Under Management

SIP Systematic Investment Plan

SWOT Strength weakness opportunity threat

R&T Registrar and Transfer Agent

ELSS Equity Linked Savings Schemes

NAV Net Asset Value

ETF Exchange-Traded Funds

AR average periodic return

1.1 Mutual Funds History

Entry of Public Sector

Entry of Private Sector

 ICICI Prudential AMC-This Company is a joint venture between ICICI Bank of

SEBI Interventions, Growth and AMFI

Phase of Steady Development and Growth

1.2 Industry Profile

 Rising Net Cash Flow and Cash from Operating activity.

 Growth in Net Profit with increasing Profit Margin (QoQ).

 Growth in Quarterly Net Profit with increasing Profit Margin (YoY).

 Company with No Debt.

 Increasing profits every quarter for the past 2 quarters.

 Annual Net Profits improving for last 2 years.

 Book Value per share improving for last 2 years.

 Company with Zero Promoter Pledge.