ANNAMALAI UNIVERSITY

PROFORMA FOR APPROVAL OF

PROJECT PROPOSAL
(Strike out whichever is not applicable)

Enrolment Number:2492000023
1. Name and Address of the Student : SHAIK FAYAZ AHAMED

Ramaiah Institute of Management Sciences

#11,6th Main, Pipeline Road,
MSRIT Post, M.S.Ramaiah Nagar,
Bengaluru-560054

2. Subject Area of the Project : FINANCE

3. Title of the Project : A COMPARATIVE STUDY OF MULTICAP
(In capital letters) MUTUAL FUND SCHEMES OF SBI MUTUAL
FUND AND ICICI MUTUAL FUND
4. Name and Official Address of the Research : Ms. CHANDRIKA C
Supervisor. (Bio-Data should be enclosed) Ramaiah Institute of Management Sciences
#11,6th Main, Pipeline Road,
MSRIT Post, M.S.Ramaiah Nagar,
Bengaluru-560054

Signature of the Student :

Date :
Signature of the Research Supervisor:
Name:
Academic Year : 2021-2022
Number of Candidates
(Number of candidates should not exceed Five for
a Research supervisor in an academic year)
Encl : 1. Synopsis
2. Bio- Data of the Research Supervisor
(for office use only)

Scrutinised by Approved / To Resubmitted

Head – Management Wing

SYNOPSIS ON
 A COMPARATIVE STUDY OF MULTICAP MUTUAL FUND
SCHEMES OF SBI MUTUAL FUND AND ICICI MUTUAL FUND

By

SHAIK FAYAZ AHAMED

2492000023

Guide Name

Ms CHANDRIKA C

For partial fulfillment of the requirements of final year MBA curriculum of

Two years Full time MBA (Industry Integrated) Programme.

Submitted to:

Through
 CONTENTS

Sl no Particulars Page no

1 INTRODUCTION
1 –5

2 REVIEW OF LITERATURE
6– 8

3
METHODOLOGY 9 –12

4 PROPOSED PLAN OF WORK

13

5 EXPECTATION 13- 14

6 REFERENCE 15
1.INTRODUCTION:

A. AREA OF PROJECT:

The main purpose of doing this project was to know about mutual fund and its functioning of
SBI and ICICI bank. This helps to know in details about mutual fund industry right from its
inception stage, growth and future prospects.

It is also helps in understanding different schemes of mutual funds .Because my study

depends upon prominent funds in India and their schemes like equity, income, balance as
well as the returns associated with those schemes.

The project study was done to ascertain the asset allocation, entry load, exit load, associated
with the mutual fund. Ultimately this would help in understanding the benefits of mutual fund
to investors.

B. INDUSTRY DETAILS:

MUTUAL FUNDS:

Mutual funds are one of the most popular investment options these days. A mutual fund is an
investment vehicle formed when an asset management company (AMC) or fund house pools
investments from several individuals and institutional investors with common investment
objectives. A fund manager, who is a finance professional, manages the pooled investment.

The fund manager purchases securities such as stocks and bonds that are in line with the
investment mandate.

Mutual funds are an excellent investment option for individual investors to get exposure to an
expert managed portfolio. Also, you can diversify your portfolio by investing in mutual funds
as the asset allocation would cover several instruments.

Investors would be allocated with fund units based on the amount they invest. Each investor
would hence experience profits or losses that are directly proportional to the amount they
invest. The main intention of the fund manager is to provide optimum returns to investors by

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 investing in securities that are in sync with the fund’s objectives. The performance of mutual
funds is dependent on the underlying assets.

The mutual fund investors are allocated with fund units proportional to the amount they have
invested. The returns that an investor would get will depend on the number of fund units held
by them. Each fund unit has exposure to all the securities that the fund manager has chosen to
include in the portfolio. Holding fund units does not provide investors with the voting rights
of any company.

By investing in mutual funds, the investors need not worry about the concentration risk as the
fund manager mitigates this by investing across several instruments. Therefore, investing in
mutual funds is an excellent way of diversifying your investment portfolio. The price of the
fund unit of a mutual fund is referred to as the net asset value (NAV). It is the price at which
you buy or sell fund units of a mutual fund scheme. The NAV of a mutual fund is calculated
by dividing the total worth of assets in the portfolio, minus liabilities. All mutual fund units
are sold and bought at the prevailing NAV of the mutual fund.

Advantages
 Increased opportunity for diversification: A fund diversifies by holding many
securities. This diversification decreases risk.
 Daily liquidity: In the United States, mutual fund shares can be redeemed for
their net asset value within seven days, but in practice the redemption is often much quicker.
This liquidity can create asset–liability mismatch which poses challenges, which in part
motivated an SEC liquidity management rule in 2016.
 Professional investment management: Open-and closed-end funds hire
portfolio managers to supervise the fund's investments.
 Ability to participate in investments that may be available only to larger
investors. For example, individual investors often find it difficult to invest directly in foreign
markets.
 Service and convenience: Funds often provide services such as check writing.
 Government oversight: Mutual funds are regulated by a governmental body
 Transparency and ease of comparison: All mutual funds are required to report
the same information to investors, which makes them easier to compare to each other.

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 Disadvantages
Mutual funds have disadvantages as well, which include:

 Fees
 Less control over the timing of recognition of gains
 Less predictable income
 No opportunity to customize

Banking sector

As per the reserve bank of India (RBI), India banking sector is sufficiently capitalized and
well regulated .The financial and economic conditions in the country are for superior to any
other country in the world credit, market and liquidity risk studies suggest that Indian banks
are generally resilient and have withstood the global downturn well.

Indian banking industry has recently witnessed the roll out of innovative banking models like
payments and small finance banks.RBI new measures may go a long way in helping the
restructuring of the domestic banking industry.

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The digital payment system in India has evolved the most among 25 countries with India’s
immediate payment services(IMPS)being the only system at level five in the faster payment
innovation index(FPII).

Top ten banks in India :

1. HDFC BANK

2. AXIS BANK

3. ICICI BANK

4. STATE BANK OF INDIA

5. BANK OF BARODA

6. KOTAK MAHINDRA BANK

7. PUNJAB NATIONAL BANK

8. BANK OF INDIA

9. INDUSIND BANK

10. CANARA BANK

STATE BANK OF INDIA (SBI):

It is an Indian multinational public sector bank and financial services statutory body

headquartered in Mumbai, Maharashtra. SBI is the 43rd largest bank in the world and ranked
221st in the Fortune Global 500 list of the world's biggest corporations of 2020, being the
only Indian bank on the list. It is a public sector bank and the largest bank in India with a
23% market share by assets and a 25% share of the total loan and deposits market. It is also
the fifth largest employer in India with nearly 250,000 employees.

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ICICI BANK LIMITED:

It is an Indian financial services company with its registered office in Vadodara, Gujarat, and
corporate office in Mumbai, Maharashtra. It offers a wide range of banking products and
financial services for corporate and retail customers through a variety of delivery channels
and specialized subsidiaries in the areas of investment banking, life, non-life
insurance, venture capital and asset management. The bank has a network of 5,275 branches
and 15,589 ATMs across India and has a presence in 17 countries.
The bank has subsidiaries in the United Kingdom and Canada; branches in United
States, Singapore, Bahrain, Hong Kong, Qatar, Oman, Dubai International Finance Centre,
China and South Africa; as well as representative offices in United Arab
Emirates, Bangladesh, Malaysia and Indonesia. The company's UK subsidiary has also
established branches in Belgium and Germany.

C.STATEMENT OF RESEARCH PROBLEM:

Mutual fund have designed in various financial instruments based on preference of

investors.The concept of mutual fund is of recent origin. Some have benefited from it and
many are not even aware of such mode of investment. some of the investors with their limited
knowledge on this mode, invest in it expecting return higher than those provided under time
deposits in commercial banks and if the expected yield do not come up instead turn to
backfire, they quit from this study is conducted with aim to understand the extent of
awareness of mutual fund in investors and steps in familiarizing them among potential
investors.

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2. REVIEW OF LITERATURE:

1. Kamboj Deepika, Jagotra Shukrant(2017):
An Empirical Study on the Performance of Select Multicap Equity Mutual Funds
in India.
The study discusses several industry trends such as increase in mutual fund accounts
and schemes, changing consumer preferences towards equity mutual funds and the
increasing role of retail investors in the overall mutual fund market. While barriers
continue to act as deterrents, the overall industry is poised to reach INR20, 00, 000
crore in terms of AUM by FY18

2. Shiji Shukla and Babita Kadakia (2018):

A Comparative Study on the Financial Performance of Selected Mutual Fund

Schemes

Mutual Fund, today, has emerged as one of the most popular financial investment tools.
The mutual fund industry is the rising and fast growing segment of the Indian Financial
Market. It provides a variety of schemes to suit the needs and risk return profile of
different categories of investors. Mutual funds help the small and medium size
investors to participate in today’s complex and modern financial scenario. Investors can
participate in the mutual fund by buying the units of the fund.

3. Mr. Omkar Umesh Bachal(2018)

Comparative analysis of multi-cap category mutual funds of different asset

management companies

which is invested in a securities are professionally overseen for the benefit of the unit-
holders. Multi-cap mutual funds are invest in different securities which can put resources
into stocks crosswise over market capitalization. These fund portfolio securities put
resources into stocks (portfolio includes substantial large, midcap and small cap stocks)
crosswise over market capitalization.

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 4.Deepa M Priya,Ramasubbian Hemavathy(2019):

A Comparative Study on Performance of Equity Mutual Funds

fields and has given out the higher level of performance for the past few years the mutual
funds has been growing at faster rate level of risk is in Small cap funds and next to that
midcap funds stands with good returns.

5.Anuja Magdum1, CA. Girish A. Samant (2019):

A Comparative Study on Mutual Fund Schemes of Selected AMC’s in India

Mutual funds are becoming a popular avenue for investment. Investors, who want enjoy the
benefits of returns of stock market but less aware of it, for them mutual fund is the best
investment option. The Indian mutual fund industry’s asset under management has crossed 25
Lakh Crore. There are numbers of schemes which can satisfy the different needs of investors.

6. Ms. Vandana Sharma & Dr. Swati Mishra(2020):

ANALYZING PERFORMANCE TREND OF OPEN ENDED EQUITY MUTUAL
FUNDS IN INDIA

A mutual fund is a trust that pools the savings of a number of investors who share a familiar
monetary goal. The money consequently composed is invested by the fund manager in
various types of securities keeping in mind the objective of the scheme. These investment
options could range from equity to debt to money market instruments. The profit earned
through these investments and the capital appreciation realized by the mutual fund scheme is
shared by its unit holders in fraction to the number of units owned by them. Thus a mutual
fund is the most suitable investment for the common man.

7.Munawar Sayyad(2020)

A Study of Indian Mutual Fund Schemes

This paper calculates the Portfolio Change Measure (PCM) developed by Grinblatt and
Titman for a sample of 744 equity schemes of Indian mutual funds over a minimum period
of more than 2 years and less than 11 years. PCM, based on holding of assets, is a measure

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which is free from ‘benchmark’ biases arising out of usage of a ‘benchmark’ portfolio. So by
using PCM as a measure, this paper, without using any benchmark, attempts to assess
whether the selected mutual fund managers were able to add value and exhibit superior skills
on the average and thus making a case for active fund management over a passive buy and
hold strategy
8. ADHIKARI, KINGSHUK; DEY, NIKHIL BHUSAN; MAZUMDER,
MAHFUZ ALOM(2020)

PERFORMANCE OF EQUITY ORIENTED MUTUAL FUNDS SCHEMES IN

INDIA: AN ANALYSIS

The performance analysis of mutual fund schemes is one of the most important areas of
interest not only for the mutual fund investors but also for the researchers of various
countries of the world. There are numbers of mutual fund schemes exist in the market and it
is very difficult for the researchers to analyse the performance of mutual fund schemes over
a long period of time as well it is also very difficult to choose the right schemes for
investment purpose. The present study makes an attempt to analyse the performance of ten
equity oriented mutual fund schemes with growth options over a period of ten years from
April 2005 to March 2015. In order to evaluate the performance of mutual fund schemes, the
study examines the return, risk and risk-adjusted returns using Sharpe, Treynor, and Jensen
measures. 
9.Dr.P.Venkatesh,Dr.V.Selvakumar,Dr.D.ShanthiRevathi,Dr.K. Maran,
(2020)
A Study on Performance Analysis of Selected Mutual Fund Schemes in India

In India, there are various investment avenues available for investors to invest and earn
profitable return. Among the others financial products, investment in mutual fund ensures
the minimum risks and maximum return to the investors. The need and scope of the mutual
fund operation has increased as the emphasis is being made on increase in domestic savings
and improvement in diversification of investments.

10.Ms. O.S. Kruthika, Dr. N. Prakash(2021)

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 Innovative Practices in Mutual Fund with Special Reference to Financial Sector

The rise of Mutual Fund Industry is in the growth face in India and it has created its edge in
the personal finance industry and has opened up opportunities to young investors in order to
diversify their investments across assets for small investments. Mutual funds provide a
higher interest rate when compared to the interest rate offered by banks for savings account. 

3. METHODOLOGY:

This Report is based on primary as well as secondary data,however primary data collection
was given more important since it is overhearing factor in attitude studies.

One of the most important users of Research Methodology is that it helps in identifying the
problem, collecting, analyzing the required information or data and providing an alternative
solution to the problem.It also helps in collecting the vital information that is required by the
top management to assist them for the better decision making both day to day decisions and
critical ones.

A. Objective:
 To know whether the investment decision have impact on the investor who makes investment
in mutual fund.
 To compare the performance of SBI Multicap Mutual fund and ICICI Multicap Mutual fund.
 To discuss about the market trends of Multicap mutual fund investments.
 To evaluate the performance of selected banks Multicap mutual fund.
 To measure the risk return relationship and market volatility of selected mutual funds.

B. SOURCES OF DATA COLLECTION

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 The study is based on the secondary data for the past of three years and for this data will
be collected through money control, websites and journals.

C.TOOLS USED FOR DATA ANALYSIS

The main tool is used for data analysis is money control for measuring of mutual fund of
two selected companies through various statistical techniques like Rate of Return, Standard
deviation, sharpe Ratio and Treynor’s Measure.

a)Rate of Return

A rate of return (RoR) is the net gain or loss of an investment over a specified time period,
expressed as a percentage of the investment’s initial cost. When calculating the rate of return
determining the percentage changes from the beginning of the period until the end. There are
two major numbers needed to calculate the rate of return:

Current value: the current value of the item.

Original value: the price at which you purchased the item

Then, apply these values to the rate of return formula:

Rate of return = ((Current value - original value) / original value) x 100

The outcome is always reflected as a percentage, so the formula requires multiplying by 100
to get the percentage. If this percentage is a positive number, then profit or gain on
investment. If the percentage is a negative number, loss on the investment.

b)Standard of 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.

Calculating Standard Deviation

We can find the standard deviation of a set of data by using the following formula:

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Where:

Ri = the return observed in one period (one observation in the data set)

R avg = the arithmetic mean of the returns observed

n = the number of observations in the dataset

c)The Sharpe’s Measure:

The Sharpe ratio measures performance that is risk-adjusted. It is calculated by subtracting

the risk-free rate of return for an investment from the rate of return and dividing the outcome
by the standard deviation of the return of the investment. The Sharpe ratio informs investors
whether the returns of an investment are due to wise investment choices or an excess risk
outcome. The higher the Sharpe ratio of an investment, the better its risk-adjusted-
performance.

Given below, is the Sharpe Ratio formula:

Sharpe Ratio = Excess Returns (Average returns-Risk-free return)/Standard deviation of

fund returns

d) Treynor’s Measure:

Treynor ratio shows the risk adjusted performance of the fund. Here the denominator is the
beta of the portfolio. Thus, it takes into account the systematic risk of the portfolio.

Jack Treynor extended the work of William Sharpe by formulating Treynor ratio.

Formula for Treynor ratio: (Rp-Rf)/Beta

Where,

Rp: Return on the portfolio

Rf: Risk free rate

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 B: Beta, the sensitivity of the portfolio to changes in the overall market.

All risk-averse investors would like to maximize this value. While a high and positive
treynor‟s index shows a superior risk adjusted performance of fund, a low and negative
treynor‟s index is an indication of unfavorable performances

D.LIMITATION

 The research will conduct within a limited duration. So a detailed and comprehensive study
could not be made
 The findings and conclusions are based on knowledge and experience of the researcher
sometime may subject to bias
 The research will be considered only for multi-cap mutual funds schemes in SBI and ICICI
Mutual Funds.
 The study is limited for 3 years only.

4.Proposed plan of work:

TIME PERIOD WORK TO BE DONE

1st – 2nd WEEK INTRODUCTION

3rd –5th WEEK LITERATURE REVIEW

6th –7th WEEK Data collection

8th – 9th WEEK ANALYSIS OF DATA COLLECTED

10th – 11th WEEK FINDINGS OF THE RESEARCH

12th WEEK SUBMISSION OF REPORT

5.EXPECTATION:
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 In this Research project of mutual fund I’m expecting that the, Past performance of a mutual
fund may not be a guarantee of future results but if you know how to analyze fund performance,
if you know what to look for and what to avoid,you can make better investment decisions, which
can increase the odds that future performance will meet or exceed your expectations.

BIBLIOGRAPHY:

 Kamboj Deepika, Jagotra Shukrant, An Empirical Study on the Performance of Select

Multicap Equity Mutual Funds in India, volume 4,issue 2,(2017)

 Shiji Shukla and Babita Kadakia, A Comparative Study on the Financial Performance of
Selected Mutual Fund Schemes, International Research Journal of Indian
 mr.omkar umesh bachal, Comparative analysis of multi-cap category mutual funds of
different asset management companies, Indian journals. com, volume 6,issue 10,(2018)

 Deepa M Priya, Ramasubbian Hemavathy, A Comparative Study on Performance of

Equity Mutual Funds, asian journal management, volume 10,issue 3,(jan 2019)

 Anuja Magdum1, CA. Girish A. Samant, A Comparative Study on Mutual Fund Schemes of
Selected AMC’s in India, International Journal of Trend in Scientific Research and
Development (IJTSRD),volume 7, Conference Issue | FIIITIPM(march 2019)

 Ms. Vandana Sharma & Dr. Swati Mishra, ANALYZING PERFORMANCE TREND OF
OPEN ENDED EQUITY MUTUAL FUNDS IN INDIA, JOURNAL OF CRITICAL
REVIEWS, Volume 7,Issue 15(july 2020)

 Munawar Sayyad, A Study of Indian Mutual Fund Schemes, Vol. 9 No. SI : Special
Issue (nov 2020)

 Adhikari,king shuk ,dey,Nikhil bhusan,mazumder, mahfuz alom, Performance of equity

oriented mutual funds schemes in India,An Analysis,clear international journal of research in
commerce & management,volume 11,Issue 10(oct 2020)

 Dr. P. Venkatesh,Dr.V.Selvakumar,Dr.D.ShanthiRevathi,Dr. K. Maran, A Study on

Performance Analysis of Selected Mutual Fund Schemes in India, Solid State Technology
Volume: 63 Issue: 2s,(2020)

 Ms.O.S.Kruthika,Dr.N.Prakash,Innovative Practices in Mutual Fund with Special Reference

to Financial Sector,International journal of leadership,innovation,society and
sustainability,Volume 1(Jan 2021)

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6.REFERENCES:

https://www.researchgate.net

https://www.referenceforbusiness.com

https://www.oxfordreference.com

https://en.wikipedia.org/wiki/Mutual_fund

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