STUDY ON QUALITY OF PROCEDURES IN COMMODITY EXCHANGES

A Project Submitted to

University of Mumbai for partial completion of the degree of

Bachelor in Management Studies

Under the Faculty of Commerce and Management

By

Riddhi Mahesh Pathari

ROLL NO: 242

Under the Guidance of

Dr. Chandra Hariharan Iyer

B.K Birla College of Arts, Science and Commerce (Autonomous),

Kalyan

(2021-2022)

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 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and the depth is so enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions in the
completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance To do this project

Iwould like to thank the Director, Principal and Coordinator of the College for providing the necessary
facilities required for completion of this project.

I take this opportunity to thank my project guide Dr. Chandra Hariharan Iyer,For moral support and
guidance

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 CERTIFICATE

This is to certify that Ms. Riddhi Mahesh Pathari has worked and duly completed her Project Work for the
degree of Bachelors in Management Studies under the Faculty of Commerce and her project is entitled,
_______________________ Title of the pentitl Role of fund manager in Mutual fund under my
supervision. I further certify that the entire work has been done by the learner under my guidance and
that no part of it has been submitted previously for any degree or Diploma of any University.

It is her own work and facts reported by her personal findings and investigation

It Dr. Chandra Hariharan Iyer

Name and signature of Guiding Teacher

Date of Submission: 23rd Oct 2021

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 DECLARATION BY LEARNER

I the undersigned Miss Riddhi Mahesh Pathari here by, declare that the

Work embodied in this project work titled Role of fund manager in mutual fund, forms my own
contribution to the research work Carried out under the guidance of Dr. Chandra Hariharan Iyer is a
result of my Own research work and has not been previously submitted to any other University For any
other Degree/ Diploma to this or any other university.

Wherever reference has been made to previous works of others, it has been clearly Indicated as such and
included in the bibliography.

I, here by further declare that all information of this document has been obtained and presented in
accordance with academic rules and ethical conduct.

Riddhi Mahesh pathari

Certified by

Name and Signature of student

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CONTENTS

1Chapter 1: Introduction

1.1 Introduction

1.2 Background of the study

1.3 Problem Statement

1.4 Research Objectives

1.5 Research Questions

1.6 Scope of the study

1.7 Significance of the Study

1.8 Definition of Key Terms

1.9 Chapterisation schemes

2 Chapter 2: Review of literature

2.1 introduction

2.2 Review of Related Literature

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2.3 Underlying/Underpinning Theory

2.4 Research Framework/Theoretical Framework

2.5. Hypotheses development

3 Chapter 3: Research methodology

3.1 Introduction

3.2 Research Design

3.3 Population

3.4 The Sampling Technique

3.5 Data Collection Procedure

3.6 Research Instruments

3.6.1 Format of questionnaire designede

3.7 Statistical Methods

3.7.1 Analytical Tools applied for the study

4 Chapter 4: Data analysis

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Chapter 5: summary of findings

5.1 Major Findings (Hypotheses Testing)

5.1.1 Research problem 1

5.1.2 Research problem 2

5.1.3 Research problem 2

5.1.4 Research problem 4

5.2 Implications of findings

5.2.1 Objective 1

5.2.2 Objective 2

5.2.3 Objective 3

5.2.4 Objective 4

Chapter 6: discussion, recommendations and conclusions

6.1 Discussion on findings

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6.1.1 Objective 1

6.1.2 Objective 2

6.1.3 Objective 3

6.1.4 Objective 4

6.2 Recommendations

6.3 Conclusion

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 Chapter 1. INTRODUCTION

1.1 INTRODUCTION

A mutual fund is both an investment and an actual company. This dual nature may seem strange, but
it is no different from how a share of AAPL is a representation of Apple Inc. When an investor buys
Apple stock, he is buying partial ownership of the company and its assets. Similarly, a mutual fund
investor is buying partial ownership of the mutual fund company and its assets. The difference is that
Apple is in the business of making innovative devices and tablets, while a mutual fund company is in
the business of making investments.
If a mutual fund is construed as a virtual company, its CEO is the fund manager, sometimes called its
investment adviser. The fund manager is hired by a board of directors and is legally obligated to work
in the best interest of mutual fund shareholders. Most fund managers are also owners of the fund.
There are very few other employees in a mutual fund company. The investment adviser or fund
manager may employ some analysts to help pick investments or perform market research. A fund
accountant is kept on staff to calculate the fund’s NAV, the daily value of the portfolio that determines
if share prices go up or down. Mutual funds need to have a compliance officer or two, and probably
an attorney, to keep up with government regulations.

As an investor, when you choose to invest in a mutual fund, it involves building a portfolio of securities.
It is the fund managers who, based on research and analysis, make the decisions about buying and
selling. Your portfolio can be managed actively or passively. If your portfolio is passively managed, it
is based on an established index, and the components are chosen by keeping in mind the underlying
index. In case of an actively managed portfolio, the fund manager picks the components of the
portfolio. These fund managers play a decisive role in the performance of active mutual fusions

Mutual fund managers have to design funds keeping in mind the reporting standards as per the
regulatory guidelines. The building of a fund takes into account the objectives of the investors, the

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 strategies, risks, expenses and various policies. Fund managers are responsible for ensuring that the
investors are aware and abide by these details and rules. It is also the responsibility of the fund
manager to make sure that all the documents are furnished on time and following the laws and
regulations
Investors typically earn a return from a mutual fund in three ways:

Income is earned from dividends on stocks and interest on bonds held in the fund’s portfolio. A fund
pays out nearly all of the income it receives over the year to fund owners in the form of a distribution.
Funds often give investors a choice either to receive a check for distributions or to reinvest the
earnings and get more shares.
If the fund sells securities that have increased in price, the fund has a capital gain. Most funds also
pass on these gains to investors in a distribution.

If fund holdings increase in price but are not sold by the fund manager, the fund’s shares increase in
price. You can then sell your mutual fund shares for a profit in the market. Most mutual funds are part
of a much larger investment company; the biggest have hundreds of separate mutual funds. Some of
these fund companies are names familiar to the general public, such as Fidelity Investments, The
Vanguard Group, T. Rowe Price, and Oppenheimer.

1.2 background study

Mutual funds performance is one of the most commonly studied topics in Investments area in the
majority countries. This is because the availability of Data and importance of mutual funds as vehicle
for investment in the stock Market. Mutual funds provide many benefits to their investors. Such
benefits Are as follow. They reduce the risk of investing in the stock market by Diversification, mutual
funds provide such as record keeping, providing market Updates, suggestions on investment
opportunities and so on. They provide Professional management by experts in the stock market.
Mutual funds also Reduce transaction costs for investors in the sense that the only performance That
investors need to see is of the fund and not the stocks or the assets held by The fund and can easily
make decisions on that basis. By pooling of investment Funds, they allow small investors to hold a
diversified portfolio. The fund Portfolio is also professionally managed and monitored by professionals
in the Market who have both experience and information for profitable security Selection. The
benefits of mutual funds mentioned above are consistent with The ones also identified by Sipra
(2006). The important thing that the investors need to note down and pay attention is That the past
performance does not always guarantee future performance.
Return is not the whole matter in investment. Instead choosing the fund that Offer great return,
investors need to create a good diversification and efficient Performance on recent date that will give
a better result than only return in the Future dates. Mutual Funds provide an investment opportunity
to individual Investors which are professionally managed. Mutual funds cater to the needs of
Especially those investors who do not have much understanding of the financial Markets, providing
them with an opportunity to hold the diversified portfolios Thus minimizing the overall risk of their

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 investment. Mutual funds are getting much popularity around the world. This is because Mutual funds
today have assets under management worth not millions or Billions but trillions of dollars. Mutual
funds have been in existing for a long Time, U.S being the pioneer in mutual funds industry where the
growth of Mutual funds started after the World War II when the mutual funds had assets Worth $1.2
billion which then reached $6 trillion by 2002 (Mahoney, 2004). I’m .Indonesia, the recast dana has
been traded since 1995 as the Undang-undang No. 8 taunt 1995 was published. As the way for easier
investment process was Created, the progress of development of the mutual fund went rapidly till
1997. The capital market plays a very important role as an efficient tool of cashflow From the investors
which have more capital to the company which is in need of Money.
The capital market is a place where the mutual funds are being sold Along with the others type of
investment such as stocks, bonds, unit link, etc. Without capital market, the efficiency to direct access
to the capital will be Decreased. When the exchange market is successful in managing the capital
Market, the efficiency rate and value of capital will be effected for they can be Intermediated by lower
financial instution under the capital market.

I analyze the performance of Japanese open-type stock mutual funds for the 1981—1992
period. The results show that, regardless of the performance measures and benchmarks
employed, most of the Japanese mutual funds underperform the benchmarks by between 3.6%
and 10.8% per annum. These funds tend to invest more in large stocks with low book-to-market
ratios. But this feature does not explain the underperformance. A potential explanation is the
dilution effect caused by inflows of funds. In Japan, a new investor of an open-type fund only
pays in the after-tax value of the net asset value. We conduct a bootstrap experiment to assess
the magnitude of this dilution effect.

Authorized users may be able to access the full text articles at this site. The Review of Financial
Studies is a major forum for the promotion and wide dissemination of significant new research
in financial economics. As reflected by its broadly based editorial board, the Review balances
theoretical and empirical contributions. The primary criteria for publishing a paper are its quality
and importance to the field of finance, without undue regard to its technical difficulty. Finance is
interpreted broadly to include the interface between finance and economics.

1.3 Problem Statement

Japan’s stagnant mutual fund industry is hunting for revitalization amid an aging, shrinking population
and unmotivated retail investors who prefer to sit on cash.

If the industry’s problems are not addressed, it will lead to a severe slowdown in the availability of
fresh capital, according to the Japan International Asset Management Center Promotion (JIAM), an
organization that is working with Japan’s government on the drive to revive the sector

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 We need to upgrade our investment capabilities in Japan, otherwise … we cannot support our
aging society,” JIAM’s representative director, Keiichi Aritomo, told CNBC. He pointed to an
example: The returns from pension funds will not be sufficient to support Japan’s retirees unless
there’s real change, he said.

A high savings rate in the country — a result of a risk averse population — is exacerbating the
issue. Money is not sufficiently being put to work, leading to low returns. Pension funds are also
not doing well because their assets aren’t being diversified enough, according to Aritomo.

That all could compound into a big problem: If returns are insufficient, then support for the aged
would have to be financed from taxes, which is an unrealistic option as it would become too
much of a burden on young workers, he said.

1.4 Research Objectives

We analyze the performance of Japanese open-type stock mutual funds for the 1981–1992 period.
The results show that, regardless of the performance measures and benchmarks employed, most of
the Japanese mutual funds underperform the benchmarks by between 3.6% and 10.8% per annum.
These funds tend to invest more in large stocks with low book-to-market ratios. But this feature does
not explain the underperformance. A potential explanation is the dilution effect caused by inflows of
funds. In Japan, a new investor of an open-type fund only pays in the after-tax value of the net asset
value. We conduct a bootstrap experiment to assess the magnitude of this dilution effect.
Most people have neither the time nor interest to research and select individual stocks and bonds for
their investment portfolios, and that’s where mutual funds come in. Mutual funds can invest in a
variety of stocks, bonds and other assets, giving you diversification, which means a decline in value in
any one stock or bond won’t significantly hurt your overall return. A handful of well-chosen mutual
funds or index funds can offer a diversified portfolio that allows the individual investor to spend his
or her time on other pursuits. Thousands of mutual funds are available that can satisfy the objectives
of different types of investors.

Diversification of Assets
Investors are often advised that they shouldn’t “put all their eggs in one basket.” Investors who have
too high of a percentage of their assets in one or two stocks can be severely affected if one of the
companies goes belly-up. Most financial experts say investors should have at least 15 stocks in their
portfolios. It takes a lot of time and effort to keep up with that many companies. Conversely, mutual
funds hold a number of stocks, which gives investors instant diversification and protects them from a
sharp decline in any one holding.

Identifying Steady Income Opportunities

Other fund investors care more about receiving income from their investments. Numerous stock
funds invest in companies with high dividend payouts. Bond funds also can provide steady income, as

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 can funds that invest in real estate investment trusts, or REITs. All these income-focused funds pass
the yields along to their investors, usually on a monthly or quarterly basis. Yields of 3 percent to 7
percent are often available with income-oriented mutual funds.

Growth Funds
Growth funds primarily contain stocks that represent an ownership stake in a company. Small-cap
stocks typically have high risk, since smaller companies have a higher failure rate. However, small
companies also have the most growth potential, so stocks with relatively small total market values
have the potential for high investment returns. These are often called small capitalization, or simply
small-cap, stocks, referring to market capitalization, meaning the total value of company shares.
Companies with a high market capitalization are called large capitalization, or large-cap, stocks.

Large-cap stocks are less volatile, but like small cap stocks, they expose investors to risk: if the
company issuing the stock goes bankrupt, the stocks usually become worthless. People who buy
individual stocks rely on the performance of a few stocks.Mutual funds, by contrast, contain
thousands of stocks. Shareholders therefore don’t rely entirely on the performance of any one
company or type of stock

1.5 Research Questions

What is the fund’s goal?

Does it fit the objectives of your portfolio? How long do you have to invest (I.e. what’s your timeline)?
What are your personal goals? Does it provide regular income? Does it work with your other investments?
These are all important factors your chosen mutual fund(s) should align with to ensure you feel confident
about making the right investment decision.

How risky is it?

You can make or lose money on a mutual fund says Mike Cunningham, Certified Financial Planner
professional at Educators Financial Group. “Usually, the higher the potential returns, the higher the risk.”
One of the key roles of a financial advisor is to ensure clients are invested correctly based on their risk
tolerance. According to Polara, 76% of investors said they had a risk tolerance conversation with their
advisor in the past year. Discuss the fund’s level of risk with your financial advisor and whether it’s suitable
for you.

Who manages the fund?

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The portfolio manager is key to the success of a mutual fund. So it makes sense to know this person’s
education and experience. Also don’t be shy about asking them questions. Do they run other funds? How
successful have they been? What is their investment style? Has the fund’s management changed a lot
over the years? High turnover can be a warning sign.

How will I be taxed?

If you don’t hold the fund in a registered plan, do you know what types of distributions are usually made
and how they’re taxed? Do you know how capital gains (or losses) are taxed? Knowing upfront about how
much you’ll have to pay in tax will prevent any surprises down the road.

ARE JAPANESE MUTUAL FUNDS A GOOD INVESTMENT?

A strong case for investing in Japanese funds can be made based on several different factors including
earnings and ROE growth, reasonable valuations, and a stable political environment. These another
factors make them an attractive long-term investment opportunity.

HOW DO I PICK JAPANESE MUTUAL FUNDS?

When investing in businesses located in Japan, it’s usually smart to choose active rather than passive
mutual funds. Active fund managers with feet on the street perform in-depth, company-specific
research to build a concentrated portfolio of high-quality Japanese companies.

HOW MUCH OF MY PORTFOLIO SHOULD I ALLOCATE TO JAPAN?

U.S. investors tend to have a home-country bias. So, despite having the third-largest economy in the
world and comprising approximately 6% of global GDP, coupled with a strong growth trajectory, Japan
is often under-allocated in U.S. investor portfolios. When developing your optimal portfolio allocation
strategy, consider not only Japan’s growth potential but also its relative position in the global
economy.

CAN U.S. INVESTORS PURCHASE JAPANESE MUTUAL FUNDS?

Yes. Residents of the U.S. can invest in Japan by purchasing shares in Japanese mutual funds. The
Hennessy Funds are specifically designed to allow U.S. investors to easily invest in the Japanese
market.

ARE JAPANESE EQUITIES CURRENTLY UNDERVALUED?

Japanese large-cap- and small-cap equities are both currently undervalued as represented by the
Tokyo Price Index (TOPIX). This makes Japanese funds compelling from a valuation standpoint.

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1.6 Scope of the study

In my project the scope is limited to some prominent mutual funds in the mutual fund industry. I
analyzed the funds depending on their schemes like equity, income, balance. But there is so many
other schemes in mutual fund industry like specialized (banking, infrastructure, pharmacy) funds,
index funds etc. My study is mainly concentrated on equity schemes, the returns, in income schemes
the rating of CRISIL, ICRA and other credit rating agencies.
Scope of Mutual Funds has grown enormously over the years. In the first age of mutual funds,when
the investment management companies started to offer mutual funds, choices were few. Even though
people invested their money in mutual funds as these funds offered them diversified investment
option for the first time. By investing in these funds they were able to diversify their investment in
common stocks, preferred stocks, bonds and other financial securities. At the same time they also
enjoyed the advantage of liquidity. With Mutual Funds, they got the scope of easy access to their
invested funds on requirement.

But, in todays world, Scope of Mutual Funds has become so wide, that people sometimes take long
time to decide the mutual fund type, they are going to invest in. Several Investment Management
Companies have emerged over the years who offer various types of Mutual Funds, each type carrying
unique characteristics and different beneficial features.To understand the broad scope of Mutual
Funds we need to discuss the main types of Mutual Funds that are normally offered by the Mutual
Companies.
Scope of Mutual Funds has grown enormously over the years. … By investing in these funds they were
able to diversify their investment in common stocks, preferred stocks, bonds and other financial
securities. At the same time they also enjoyed the advantage of liquidity

1.7 Significance of the Study

Mutual fund is a company that pools money from many investors and invests the money in securities
such as stocks, bonds, and short-term debt. The combined holdings of the mutual fund are known as
its portfolio. Investors buy shares in mutual funds. Each share represents an investor’s part ownership
in the fund and the income it generates.
Mutual funds are a popular choice among investors because they generally offer the following
features:

Professional Management. The fund managers do the research for you. They select the securities
and monitor the performance.

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Diversification or “Don’t put all your eggs in one basket.” Mutual funds typically invest in a range of
companies and industries. This helps to lower your risk if one company fails.
Affordability. Most mutual funds set a relatively low dollar amount for initial investment and
subsequent purchases.
Liquidity. Mutual fund investors can easily redeem their shares at any time, for the current net asset
value (NAV) plus any redemption fees.

Most mutual funds fall into one of four main categories – money market funds, bond funds, stock
funds, and target date funds. Each type has different features, risks, and rewards.

Money market funds have relatively low risks. By law, they can invest only in certain high-quality,
short-term investments issued by U.S. corporations, and federal, state and local governments.
Bond funds have higher risks than money market funds because they typically aim to produce higher
returns. Because there are many different types of bonds, the risks and rewards of bond funds can
vary dramatically.
Stock funds invest in corporate stocks. Not all stock funds are the same. Some examples are:
Growth funds focus on stocks that may not pay a regular dividend but have potential for above-
average financial gains.
Income funds invest in stocks that pay regular dividends.
Index funds track a particular market index such as the Standard & Poor’s 500 Index.
Sector funds specialize in a particular industry segment.
Target date funds hold a mix of stocks, bonds, and other investments. Over time, the mix gradually
shifts according to the fund’s strategy. Target date funds, sometimes known as lifecycle funds, are
designed for individuals with particular retirement dates in mind.

Investors buy mutual fund shares from the fund itself or through a broker for the fund, rather than
from other investors. The price that investors pay for the mutual fund is the fund’s per share net asset
value plus any fees charged at the time of purchase, such as sales loads.

Mutual fund shares are “redeemable,” meaning investors can sell the shares back to the fund at any
time. The fund usually must send you the payment within seven days.

Before buying shares in a mutual fund, read the prospectus carefully. The prospectus contains
information about the mutual fund’s investment objectives, risks, performance, and expenses. See
How to Read a Mutual Fund Prospectus Part 1, Part 2, and Part 3 to learn more about key information
in a prospectus.

Mutual funds allow investors to benefit from diversified portfolios by grouping investments
Together and these investment groupings typically differ according to investment style. Owing to
The purported skill involved in actively managing investors’ money, active mutual funds typically
Charge higher fees than exchange-traded funds (ETFs) that seek to mimic the market returns. Despite
Plethora of literature being available for US mutual funds, relatively little focus has been given to
Japanese mutual funds1.
This paper contributes to the literature by using popular performance measures to infer the

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 Active managers’ skill level in Japan2 by analyzing Japanese mutual fund performance over
management
cross-sectional returns, thus establishing the four-factor CAPM model as a valid benchmark.
This paper adds to the existing literature by discussing the interaction between stock-picking and
market timing abilities. The stock picking ability of each fund is analyzed using the Jensen’s alpha
measure, defined as the “average incremental rate of return on the portfolio per unit of time which
is solely due to the managers’ ability to forecast future security prices” Jensen (1968). Forecasting
security prices is analogous to stock picking since managers would not buy stocks if they forecast
them to perform poorly. If a fund’s alpha is positive (negative) this implies that managers exhibit good
(poor) stock selection ability. The greater granularity of this measure compared to EW also means
the distribution of funds’ alphas can be examined.

1.8 Definition of Key Terms

A mutual fund is a type of security that enables investors to pool their money together into one
professionally managed investment. Mutual funds can invest in stocks, bonds, cash, and/or other
assets. These underlying security types, called “holdings,” combine to form one mutual fund, also
called a “portfolio.”
Mutual funds give small or individual investors access to professionally managed portfolios of equities,
bonds, and other securities. Each shareholder, therefore, participates proportionally in the gains or
losses of the fund. Mutual funds invest in a vast number of securities, and performance is usually
tracked as the change in the total market cap of the fund—derived by the aggregating performance
of the underlying investments
KEY TAKEAWAYS
A mutual fund is a type of investment vehicle consisting of a portfolio of stocks, bonds, or other
securities.
Mutual funds give small or individual investors access to diversified, professionally managed portfolios
at a low price.
Mutual funds are divided into several kinds of categories, representing the kinds of securities they
invest in, their investment objectives, and the type of returns they seek.
Mutual funds charge annual fees (called expense ratios) and, in some cases, commissions, which can
affect their overall returns.
The overwhelming majority of money in employer-sponsored retirement plans goes into mutual
funds.

Mutual Fund Loads

Loads are fees charged to the investor when buying or selling certain types of mutual funds. There are
four types of loads: Front-end loads are charged up front (at the time of purchase) and average around

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5% but can be as high as 8.5%. For example, if you invest $1,000 with a 5% front load, the load amount
will be $50.00, and therefore your initial investment will actually be $950. Back-end loads, also called
“contingent deferred sales charges,” are charged only when you sell a back-loaded fund.

Mutual Fund Share Class:

Each mutual fund has a share class, which is basically a classification of how the fund charges fees.
There are several different types of mutual fund share classes, each with its own advantages and
disadvantages, most of which center upon expenses.

Expense Ratio
Even if the investor uses a no-load fund, there are underlying expenses that are indirect charges for
use in the fund’s operation. The expense ratio is the percentage of fees paid to the mutual fund
company to manage and operate the fund, including all administrative expenses and 12b-1 fees. The
mutual fund company would take those expenses out of the fund prior to the investor seeing the
return. For example, if the expense ratio of a mutual fund were 1.00%, and you were to invest
$10,000, the expense for a given year would be $100.

Index Funds
An index, with regard to investing, is a statistical sampling of securities that represent a defined
segment of the market. For example, the S&P 500 Index is a sampling of approximately 500 large-
capitalization stocks. Index funds are simply mutual funds that invest in the same securities as its
benchmark index. The logic in using index funds is that, over time, the majority of active fund
managers are not able to outperform the broad market indexes.

Market Capitalization
With investment securities, market capitalization (or “market cap”), refers to the price of a share of
stock multiplied by the number of shares outstanding. Many equity mutual funds are categorized
based on the average market capitalization of the stocks that the mutual funds own. This is important
because investors need to be sure of what they are buying. Large-cap stock funds invest in stocks of
corporations with large market capitalizations, typically higher than $10 billion. These companies are
so large that you have probably heard of them, or you may even purchase goods or services from
them on a regular basis. Some large-cap stock names include Wal-Mart, Exxon Mobil, GE, Pfizer, Bank
of America, Apple, and Microsoft

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1.7 Chaptalization schemes

A mutual fund categorized by market cap (i.e., small-cap, mid-cap or large-cap) indicates the size of
the companies in which the fund invests, not the size of the mutual fund. Market cap is calculated by
the number of shares outstanding, multiplied by the current market price of one share. Thus, a
company with one million shares outstanding, selling at $100 per share, would carry a $100 million
market cap.
Small-Cap Funds
Small-cap funds typically include companies with market caps of less than $2 billion. However, the
dividing line can change and exact definitions can vary between funds and brokerage houses.
Generally speaking, smaller companies are engaged in the early stages of business operations. They’re
presumed to have significant growth potential but aren’t as financially stable or established as larger
companies. Many mutual funds cannot take large positions in small-cap stocks without filing with the
SEC, which has the added benefit of greater transparency.

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 2 Chapter 2: Review of literature

2.Introduction

Mutual funds are sine qua non for the development of the capital markets and creation of equity cult
in the economy. Mutual funds mobilize saving from large number of investors and invest these funds
in shares and another securities. The return obtained from the mutual fund investments is shared
among the investors, called shareholders or unit holders, in proportion to their investment.
The formation of Unit Trust of India marked the evolution of the mutual fund industry in the year
1963. The primary objective at that time was to attract the small investors and it was made possible
through the collective efforts of the Government of India and the Reserve Bank of India.

Mutual fund is an important segment of the financial system.…show more content…

A number of studies on evaluating the performance of Indian Mutual Fund Schemes have been
conducted in India and foreign countries. Review of some of the studies is presented in the following
discussion: -

Jayadev (1996) evaluated the performance of two growth-oriented mutual funds namely Mastergain
and Magnum express by using monthly returns. Jensen, Sharpe and Treynor measures have been
applied in the study and the pointed out that according to Jensen and Treynor measure Mastergain
have performed better and the performance of Magnum was poor according to all three measures.

Afza and Rauf (2009) in their study of open-ended Pakistani mutual funds’ performance using the
quarterly data for the period of 1996-2006. The study measure the fund performance by using Sharpe
ratio with the help of pooled time-series and cross sectional data and also focused on different
attributes such as fund size, expenses, age, turnover and liquidity. The results found significant impact
on fund

In line with the importance of asset returns and volatility, a non-negligible volume of studies about a
significant number of countries has made use of Sharpe indices in order to evaluate the performance
of mutual funds and relate it with their investment styles.

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2.2 Review of Related LLiterature

Tracer study is an approach which widely being used in most organization especially in the educational
institutions to track and to keep record of their students once they havegraduated from the institution.
Through tracer study, an institution able to evaluate the quality of education given to their graduates by
knowing the graduates placements and positions in thesociety which later can be used as a benchmark in
producing more qualified and competitive graduates. There are books that we can use as a tool for
studying different aspects of education and for studying the pres

The recent financial crisis that was triggered by the Lehman Brothers collapse has led to worldwide
renewed interest in the effects of non-standard policies on asset performance. Not surprisingly, therefore,
there has been a growing volume of literature concerning QE impacts on asset prices in the last few years,
indicative of the importance of non-conventional policy throughout markets. In the case of Japan (inter
alia), Hanisch (2017) [6] argues that a monetary policy shock that raises the monetary base has a positive
strong effect on stock prices the real economy through the stock price channel (Honda et al., (2013) [4]).
Specifically, Lambert and Ueda (2014) [59] argue that there is no clear effect of monetary easing on bank
stock valuation, whereas Reza et al. (2015) [60] and Hosono and Isobe (2014) [3] support that QE
effectiveness may be affected by imperfect pass-through to asset prices. Moreover, Wang et al. (2015) [2]
by employing a value-at-risk methodology provide evidence that right-tails of U.S. and Japanese stock
returns decrease, whereas left-tails of markets increase due to QE. Therefore, this paper tries to shed light
on this direction by investigating the performance and style of equity funds over a QE versus a non-QE
period in Japan. 3. Data and Methodology In order to empirically investigate the Japanese funds’
performance and style over the pre- and post-Lehman Brothers collapse, data were collected from the
Yahoo Finance database (https://finance.yahoo.com/). Due to respecting the data availability constraints
and aiming to cover a range of different fund managers, our analysis is concentrated on eight particular
mutual funds, presented in Table 1. Monthly data are used covering the period from April 2005–
September 2008 (pre-crisis period), as well as from ctober 2008–March 2016 (crisis and post-crisis period,
called the ‘’post-crisis period’’). The post-crisis period coincides with the period of Quantitative Easing
during which the Japanese financial markets have been influenced. Table 1. Mutual funds’ symbols and
years of holding. Table 3.1. Performance Analysis In the first step of our methodology, which is based on
a Capital Asset Pricing Model (CAPM), we evaluate the performance of each mutual fund.

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2.3 Underlying/Underpinning Theory

As already mentioned earlier in this article, in the recent years, IS studies employSocio-technical theories
to guide their studies. The use of the theories to underpin Studies is mainly in the areas of qualitative
interpretive research. This is primarily Because of the interplay between technical and non-technical
factors which are involved in the field of IS. Underpinning theories are referred to, by Gregor (2002) as
Theories for understanding social context in IS studies. The theories are intended to Explain “how” and
“why” things happen in the way that they do.The theory which underpins a study is often viewed as a
lens. In Orlikowski (2000), the word “lens” is used in the sense of assessment, where certain features are
Focused upon and emerge, and where the rest of the picture falls into the background. Lenses are used
as an analytical tool to aid interpretation and analysis of data in research. The analysis of the data
determines and shapes the results of the study. The Analysis of data is fundamental to any study. Hence,
the tool (theory) used in the analysis is deemed critical. How data is collected and analysed is within the
frame of the Theory which underpin the study.One of the significance factors of underpinning theories is
that they encompass Both technical and social contexts within phenomena under study. A theory which
Underpins a study is characteristically relied upon for rationales such as: To help exhume the dependence
and relationships which exist among actors Within an environment.Provides guidance in the
interpretation of empirical data which was gathered Over time and within a contex Creates awareness of
social events, processes and activities which takes Place in the development, implementation and practice
of information technology and systems.

The theory which underpins a study is potentially to help find the factors that make A difference either in
the development or implementation, or both of information systems in organisations. The aim is to gain
better understanding of the socio-technical Dynamics in organisations, institutions and how people
interact with the systems, so As to solve current or emerging problems. The notion of socio-technical
systems is not New. It emerged in the 1950’s that through the interaction between people and technology
in the course of innovation, socio-technical context do exist

Reduces the gap of assumptions and prediction of actions within a context.Mutual funds are often
classified by their principal investments: money market funds, bond or fixed income funds, stock or equity
funds, or hybrid funds.[1] Funds may also be categorized as index funds, which are passively managed
funds that track the performance of an index, such as a stock market index or bond market index, or
actively managed funds, which seek to outperform stock market indices but generally charge higher fees.
Primary structures of mutual funds are open-end funds, closed-end funds, unit investment trusts.

2.4 Research Framework/Theoretical Framework

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A theoretical framework consists of concepts and, together with their definitions and reference to
relevant scholarly literature, existing theory that is used for your particular study. The theoretical
framework must demonstrate an understanding of theories and concepts that are relevant to the topic of
your research paper and that relate to the broader areas of knowledge being considered.

The theoretical framework is most often not something readily found within the literature. You must
review course readings and pertinent research studies for theories and analytic models that are relevant
to the research problem you are investigating. The selection of a theory should depend on its
appropriateness, ease of application, and explanatory power.

The theoretical framework strengthens the study in the following ways:

An explicit statement of theoretical assumptions permits the reader to evaluate them critically.

The theoretical framework connects the researcher to existing knowledge. Guided by a relevant theory,
you are given a basis for your hypotheses and choice of research methods.

Articulating the theoretical assumptions of a research study forces you to address questions of why and
how. It permits you to intellectually transition from simply describing a phenomenon you have observed
to generalizing about various aspects of that phenomenon.

Having a theory helps you identify the limits to those generalizations. A theoretical framework specifies
which key variables influence a phenomenon of interest and highlights the need to examine how those
key variables might differ and under what circumstances.

By virtue of its applicative nature, good theory in the social sciences is of value precisely because it fulfills
one primary purpose: to explain the meaning, nature, and challenges associated with a phenomenon,
often experienced but unexplained in the world in which we live, so that we may use that knowledge and
understanding to act in more informed and effective ways.

identify the determinants of mutual fund performance. Mutual funds have grown in the global financial
scene since the 1890s. Past studies have examined various issues associated with mutual funds. However,
in Malaysia, mutual fund related studies are rather limited. While most global researches observe the
determinants of conventional mutual fund performance, the literature in Malaysia focuses only on a
comparison of the performance of mutual funds. Hence, this study aims to fill that gap by providing a
framework to assess the determinants of mutual fund performance. More specifically, the study proposes
a conceptual framework to determine the effect of historical return, fund governance, timing and
selection skills on mutual fund performance. The advancement of the study can be found through the use
of theory of performance and mutual fund fees as a mediator in determining the performance of mutual
fund fees. Methodology/Technique – A quantitative approach based on secondary data will be used in
this study. Multivariate regression analysis and structural equation modelling is also used to evaluate the
relationship between the variables. Findings – A conceptual framework is proposed based on the Theory
of Performance. The model fit and the mediating role of mutual fund fees will be confirmed after the
collection of the research data. It is expected that historical return, fund governance, timing and selection
skills will affect mutual fund performance and mutual fund fees will mediate the relationship between the
two. Novelty – This study will provide a new perspective on mutual fund performance by using the Theory

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of Performance. In addition, the mediating role of mutual fund fees is further examined in relation to the
specified determinants and mutual fund performance.

2.5. Hypotheses developments

Small investors face lot o f problems while investing in the share market due to lack o f Professional know-
how, limited money, lack o f information etc. Mutual funds have come As a much needed help to these
investors. It is a special type o f investment instrument Through which the investor’s savings are pooled
and invested by expert fund managers in A wide variety o f portfolios consisting o f equity shares and debt
instruments in such a Way that the risk is minimized and safety o f the investment is ensured. .1 .1 .
Monthly Income Plans ( M IPs ) invests maximum o f their total corpus in debt instruments while they take
minimum exposure in equities. It gets benefit o f both equit And debt market. The primary objective is
generation o f regular return beating the Inflation, through investment in Debt and Money Market Schem
es. Secondary objective Is generation o f long term capital appreciation by investing a portion o f funds in
Equity Market. These funds have long term time horizon and are more tax efficient as comparedTo fixed
deposits. .1 .2 . M IP schemes rank slightly high on the risk-retum m atrix when compared with Other debt
schemes. Since MIPs are market-linked, to the extent o f their equity portfolio Which is generally o f the
order o f 15-20% , they are less risky than balanced funds where They usually have a 6 0 -7 0 % exposure
to equities, but riskier than pure debt funds. One Cannot accurately forecast how the equity and debt
markets will behave over any Reasonable period. It raises the risk o f capital erosion and non-payment o
f dividend for Investors.

Most MIP fund managers have been aggressive in the past for increasing their Equity exposure to up to
30% when they were bullish about the stock market. While this May boost the overall returns o f the fund
during a bull market, the fund N A V may take abating during market fall. However, the fund manager’s
skill plays an important role inDeciding the proportion o f share in equities as well as the choosing the
right equity shares Having future potential.

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The Efficient Fund Hypothesis is a wonderful idea that few people embrace. Instead, most investors go to
brokers for advice, or the media, or they try to self-manage accounts based on the news of the day. Only
after losing to the markets for years do some people throw in the towel and turn to the EFH.

EFH should not be confused with EMH – the efficient market hypothesis. Eugene Fama coined the term
“efficient market” in his 1960s Ph.D. dissertation, Random Walks in Stock Market Prices. EMH theorist
believe that current security prices reflect all available information and that no amount of analysis will
improve upon the market’s result. This idea is also important in EFH, but is it not paramount.

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 3 Chapter 3: Research methodology

3.1 Introduction

Research may be defined as the systematic and objective analysis and Recording of control
observation that may lead to generation principles or Theories resulting in prediction and possibly
ultimate control of the Events. Research means careful, critical inquiry or examination in Seeking facts
or principles for ascertaining something. Research is Directed towards finding a solution of a problem.
Clifford Woody –“Research is the process which includes defining and Redefining problems,
formulating hypothesis or suggested solution, Collecting, organizing and evaluating data; making
deductions and Reaching conclusions and at last carefully testing the conclusions to Determine
whether they fir the formulating hypothesis.” Martyn Shuttleworth—“In the broadest sense of the
word, the definition Of research includes any gathering of data, information and facts for the
Advancement of knowledge.” Creswell –“Research is a process of steps used to collect and analyse
Information to increase our understanding of a topic or issue”. It consists Of three steps: Pose a
question, collect data to answer the question, and Present an answer to the question.-The Merriam-
Webster Online Dictionary defines research in more detail As “a studious inquiry or examination;
especially :investigation or Experimentation aimed at the discovery and interpretation of facts,
Revision of accepted theories or laws in the light of new facts, or practical Application of such new or
revised theories or laws”. Redman and Mory define research as a “systematized effort to gain new
Knowledge”.
Research: Research in common parlance refers to “a search for Knowledge”. One can also define
research as a scientific and systematic Search for pertinent information on a specific topic. In fact,
research is An art of scientific investigation. The advanced learner‟s dictionary of Current English lays
down the meaning of research as “a careful Investigation or inquiry especially through search for new
facts in any Branch of knowledge”
It refers to the overall approach to a problem which could be put into a Practice in a research
process, from the theoretical underpinnings to the Collection and analysis of data (Collis and Hussey,
2003). It is a way to Systematically solve the research problem. It may be understood as a Science of
studying how research is done scientifically. To provide a Proper representation a comprehensive
approach is to be adopted and Put in action. A researcher adopts sequential steps to understand the
Research problem, accordingly plans the techniques and the methodology For the work undertaken.

26
An understanding and clarity of the statistical Tools to be applied, the reasoning and relevancy behind
the same is to be Decided by the researcher. Hence knowing the research methods or Techniques is
not sufficient but also the methodology is equally Important Therefore it is necessary for the
researcher to design a Methodology suited to the research problem. In order to gain an
Understanding of the effect of the research undertaken various Methodologies can be applied which
could be publication research, Interviews, surveys and other research techniques. It may be inclusive
of Both present and historical information. Methodology is the method Adopted by the researcher
for the collection of the data. The research is Conducted with the help of various methods of data
collection which are Dependent on the nature and scope of research work

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3.2Research Design

Research methodology is the path through which researchers need to conduct their research. It shows
the path through which these researchers formulate their problem and objective and present their result
from the data obtained during the study period. This research design and methodology chapter also shows
how the research outcome at the end will be obtained in line with meeting the objective of the study. This
chapter hence discusses the research methods that were used during the research process. It includes the
research methodology of the study from the research strategy to the result dissemination. For emphasis,
in this chapter, the author outlines the research strategy, research design, research methodology, the
study area, data sources such as primary data sources and secondary data, population consideratio and
sample size determination such as questionnaires sample size determination and workplace site exposure
measurement sample determination, data collection methods like primary data collection methods
including workplace site observation data collection and data collection through desk review, data
collection through questionnaires, data obtained from experts opinion, workplace site exposure
measurement, data collection tools pretest, secondary data collection methods, methods of data analysis
used such as quantitative data analysis and qualitative data analysis, data analysis software, the reliability
and validity analysis of the quantitative data, reliability of data, reliability analysis, validity, data quality
management, inclusion criteria, ethical consideration and dissemination of result and its utilization
approaches. In order to satisfy the objectives of the study, a qualitative and quantitative research method
is apprehended in general. The study used these mixed strategies because the data were obtained from
all aspects of the data source during the study time. Therefore, the purpose of this methodology is to
satisfy the research plan and target devised by the researcher

The research design is intended to provide an appropriate framework for a study. A very significant
decision in research design process is the choice to be made regarding research approach since it
determines how relevant information for a study will be obtained; however, the research design process
involves many interrelated decisions

This study employed a mixed type of methods. The first part of the study consisted of a series of well-
structured questionnaires (for management, employee’s representatives, and technician of industries)
and semi-structured interviews with key stakeholders (government bodies, ministries, and industries) in
participating organizations. The other design used is an interview of employees to know how they feel
about safety and health of their workplace, and field observation at the selected industrial sites was
undertaken.

Descriptive research concentrates on finding facts to ascertain the nature of Something as it exists. In
contrast analytical research is concerned with Determining validity of hypothesis based on analysis of facts
collected. Applied research is carried out to find answers to practical problems to be solved And as an aid

29
in decision making in different areas including product design, Process design and policy making.
Fundamental research is carried out as more To satisfy intellectual curiosity, than with the intention of
using the research Findings for any immediate practical aplication.Quantitative research studies such
aspects of the research subject which are not Quantifiable, and hence not subject to measurement and
quantitative analysis. In Contrast quantitative research makes substantial use of measurements and
Quantitative analysis techniques. Conceptual research is involves investigation of thoughts and ideas and
Developing new ideas or interpreting the old ones based on logical reasoning. In Contrast empirical
research is based on firm verifiable data collected by either Observation of facts under natural condition
or obtained through experimentation.

Some Other Types of Research: All other types of research are variations of One or more of the above
stated approaches, based on either the purpose of Research, or the time required to accomplish research,
on the environment in which Research is done, or on the basis of some other similar factor. Form the
point of View of time, we can think of research either as one-time research or longitudinal Research.

3.3 Population

Population size at a given moment of time is one of the basic characteristic, which demographic
statistics observes. All data refer to the resident population of the Czech Republic, irrespective of
citizenship. Since 2001, the figures also include (in accordance with the Population and Housing
census 2001) foreigners with long-term stay and foreigners with granted asylum status Since 1st May
2004, in accordance with amendment to the Act No. 326/1999., the figures also include citizens of the
European Union with temporary stay on the territory of the Czech Republic, and citizens of other
countries with long-term stay.

Number of inhabitants is specified by decisive point in time, territory or other characteristics (e.g. sex,
age, marital status etc.).

Start-period population:g. it is the number of inhabitants in a given area at the beginning of the
observed period; it is usually a calendar year. It could also be the beginning of the half-year, quarter
of year or a month. For example in case of calendar year, the population on 1st January is the
population at midnight between 31st December previous year and 1st January of the reference year.

End-period population: it is the number of inhabitants in a given area at the end of the observed
period. For example in case of calendar year, the population on 31st December is the population at
24:00 (midnight) on 31st December of the reference year.

The population on 31st December is generally identical with the population on 1st January the following
year. The only exceptions are territorial reorganizations (the size of given territory can be changed

30
with effect on 1st January) or the years when the population census took place since its results are
reflected on data on population concerning the whole year in demographic statistics

Mid-period population: it is the number of inhabitants in a given area at the moment, which was
chosen as the middle of reference period. In the Czech Republic the mid-year population is the
number of inhabitants in a given area at midnight between 30th June and 1st July of the reference year.
Mid-period population in half-year or quarter of year is the average of mid-period population in given
months and, mid-period population in month is the average of start-period and end-period population
of given month.

Mid-period population is used as the base for the calculation of demographic indicators, but also
economic statistics indicators. Marriage rate, pregnancy rate, divorce rate etc., as well as gross
domestic product are expressed per given number of inhabitants (1,000 or 1 etc.) and their calculation
is based on mid-period population.

3.4 The Sampling Technique

Sampling is a technique of selecting individual members or a subset of the population to make

statistical inferences from them and estimate characteristics of the whole population. Different
sampling methods are widely used by researchers in market research so that they do not need to
research the entire population to collect actionable insights.

It is also a time-convenient and a cost-effective method and hence forms the basis of any research
design. Sampling techniques can be used in a research survey software for optimum derivation.

For example, if a drug manufacturer would like to research the adverse side effects of a drug on the
country’s population, it is almost impossible to conduct a research study that involves everyone. In
this case, the researcher decides a sample of people from each demographic and then researches
them, giving him/her indicative feedback on the drug’s behavior.

Types of sampling: sampling methods

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Sampling in market research is of two types – probability sampling and non-probability sampling. Let’s
take a closer look at these two methods of sampling.

Probability sampling: Probability sampling is a sampling tech nonique where a researcher sets a
selection of a few criteria and chooses members of a population randomly. All the members have an
equal opportunity to be a part of the sample with this selection parameter.
Non-probability sampling: In non-probability sampling, the researcher chooses members for research
at random. This sampling method is not a fixed or predefined selection process. This makes it difficult
for all elements of a population to have equal opportunities to be included in a sample.

Simple random sampling:. One of the best probability sampling techniques that helps in saving time
and resources, is the Simple Random Sampling method. It is a reliable method of obtaining
information where every single member of a population is chosen randomly, merely by chance. Each
individual has the same probability of being chosen to be a part of a sample.

Cluster sampling: Cluster sampling is a method where the researchers divide the entire population
into sections or clusters that represent a population. Clusters are identified and included in a sample
based on demographic parameters like age, sex, location, etc. This makes it very simple for a survey
creator to derive effective inference from the feedback.

Systematic sampling:. Researchers use the systematic sampling method to choose the sample
members of a population at regular intervals. It requires the selection of a starting point for the
sample and sample size that can be repeated at regular intervals. This type of sampling method has a
predefined range, and hence this sampling technique is the least time-consuming.

Stratified random sampling: Stratified random sampling is a method in which the researcher divides
the population into smaller groups that don’t overlap but represent the entire population. While
sampling, these groups can be organized and then draw a sample from each group separately.

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33
3.5 Data Collection Procedure

As it is indicated in the title, this chapter includes the research methodology of the dissertation. In
more details, in this part the author outlines the research strategy, the research method, the research
approach, the methods of data collection, the selection of the sample, the research process, the type
of data analysis, the ethical considerations and the research limitations of the project. The research
held with respect to this dissertation was an applied one, but not new. Rather, numerous pieces of
previous academic research exist regarding the role of DMOs in promoting and managing tourist
destinations, not only for Athens in specific, but also for other tourist destinations in Greece and other
places of the world. As such, the proposed research took the form of a new research but on an existing
research subject. In order to satisfy the objectives of the dissertation, a qualitative research was held.
The main characteristic of qualitative research is that it is mostly appropriate for small samples, while
its outcomes are not measurable and quantifiable (see table 3.1). Its basic advantage, which also
constitutes its basic difference with quantitative research, is that it offers a complete description and
analysis of a research subject

3.6 Research Instruments

A Research Instrument is a tool used to collect, Measure, and analyze data related to your research
Interests. These tools are most commonly used in Health sciences, social sciences, and education to
Assess patients, clients, students, teachers, staff, etc. AResearch instrument can include interviews,
tests, Surveys, or checklists.The Research Instrument is usually determined by Researcher and is tied
to the study methodology.This document offers some examples of research Instruments and study
methods.

Observation (watching what people do) is a type of correlational (non-experimental) method Where
researchers observe ongoing behavior
Structured Observations: Research conducted at a specific place, time, where participants Are
observed in a standardised procedure. Rather than writing a detailed description of all Behaviors
observed, researchers code observed behaviors according to a previously agreed Upon scale.
Naturalistic Observation: The study the spontaneous behavior of participants in natural Surroundings.
The researcher simply records what they see in whatever way they see it.
Participant Observation: A variation on natural observations where the researcher joins in and
Becomes part of the group they are studying to get a deeper insight into their lives.

34
3.6.1 Format of questionnaire designede

A questionnaire is a list of questions or items used to gather data from respondents about their
attitudes, experiences, or opinions. Questionnaires can be used to collect quantitative and/or
qualitative information. Questionnaires are commonly used in market research as well as in the social
and health sciences. For example, a company may ask for feedback about a recent customer service
experience, or psychology researchers may investigate health risk perceptions using questionnaires.
Questionnaires can be self-administered or researcher-administered. Self-administered
questionnaires are more common because they are easy to implement and inexpensive, but
researcher-administered questionnaires allow deeper insights.

A good questionnaire should be valid, reliable, clear, interesting and succinct.

Valid
A valid questionnaire should ask what it intends to ask, i.e. the questions should be phrased in such a
way that the respondent understands the objective of the question. To achieve this, the questionnaire
should be reviewed by the “content expert” during the pilot test (e.g. if the target respondent is a
diabetic patient, then a diabetic patient should comment whether he understands the questionnaire).
Any uncertainties and queries should be clarified till the question is clearly understood.

Reliable
A reliable questionnaire should yield the same answer if the same question is posed to the respondent
repeatedly in a short span of time. This can be achieved by performing a “test-retest”, i.e. administer
the same questionnaire to the respondent a second time and check for consistency of the answer.
Any discrepancy in the answers could be due to lack of clarity of the questions and this should be
reviewed and rephrased.

Interesting
An interesting questionnaire is more likely to be completed by the respondent and hence yields a
better response rate. This requires the researcher to put some thoughts into asking questions that
are relevant to the respondent and in a logical sequence.

Succinct
A succinct questionnaire asks questions that aim to answer only the research objectives. Any
questions beyond the scope of the research should be excluded. It is common for researchers to “cast
the net wider” so that they will collect more data, regardless of whether these data are important or
not. This usually happens when the researcher has not properly thought through the research
objectives

A good questionnaire should be valid, reliable, clear, succinct and interesting. It is important to design
the questionnaire based on a conceptual framework, scrutinise each question for relevance and
clarity, and think of the analysis you are going to perform at the end of the day.

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3.7 Statistical Methods

Statistical methods are mathematical formulas, models, and techniques that are used in statistical
analysis of raw research data. The application of statistical methods extracts information from
research data and provides different ways to assess the robustness of research outputs.
Statistics is the discipline that concerns the collection, organization, analysis, interpretation, and
presentation of dataIn applying statistics to a scientific, industrial, or social problem, it is conventional
to begin with a statistical population or a statistical model to be studied. Populations can be diverse
groups of people or objects such as “all people living in a country” or “every atom composing a
crystal”. Statistics deals with every aspect of data, including the planning of data collection in terms
of the design of surveys and experiments.

The word “statistics” is used in 3 main ways:

1. Common meaning: factual information involving Numbers. A better word for this is data.

2. Precise meaning: quantities which have been Derived from sample data, e.g. the mean (or
Average) of a data set

3. Common meaning: an academic subject which Involves reasoning about statistical quantities

The three main areas of the Subject of statistics

1.Descriptive statistics – describing and summarising Data sets using pictures and statistical quantities

2.Inferential statistics – analysing data sets and Drawing conclusions from them

3.Probability – the study of chance events governed By rules (or laws

Data types

In statistics it is vital to understand what types of data You are working with.

There are three main types:

Q Nominal – categories that do not have a natural Order, e.g. gender, eye colour, types of building

36
Q Ordinal – categories which have a natural order but Are not numerical, e.g. Likert scales

Q Scale/continuous – numerical data ordered against A constant scale, e.g. date, temperature, length,
weight, Frequency

3.7.1 Analytical Tools applied for the study

A researcher requires many data – gathering tools or techniques. Tests Are the tools of
measurement and it guides the researcher in data Collection and also in evaluation. Tools may
vary in complexity, Interpretation, design and administration. Each tool is suitable for the
Collection of certain type of information.One has to select from the available tools those
which will Provide data he seeks for testing hypothesis. It may happen thatExisting research
tools do not suit the purpose in some situation, so Researcher should modify them or
construct his own.

Different tools used for data collection may be;

1. Questionnaires
2. Interviews
3. Schedules
4. Observation Techniques
5. Rating Scales

Questionnaire:

It is list of questions related to one topic. It may be defined as;“A questionnaire is a systematic
compilation of questions that are Submitted to a sampling of population ultimo from which
information is desired

“In general, the word questionnaire refers to a device for securing Answers to questions by
using a form which the respondent fills in Himself.

The Interview:

Interview is a two way method which permits an exchange of ideas and

Information. “Interviewing is fundamentally a process of social interaction.”

37
 “The interview constitutes a social situation between two persons, the Psychological process
involved requiring both individuals mutually Respond though the social research purpose of
the interview call for a Varied response from the two parties concerned.”

Schedule:

When a researcher is using a set of questionnaires for interview purpose It is known as

schedule. “Schedule is the name usually applied to set of questions, which are Asked and filled
by an interviewer in a face to face situation with Another.”

Observation Technique:

This is most commonly used technique of evaluation research. It is used For evaluating
cognitive and non-cognitive aspects of a person. It is used In evaluation performance,
interests, attitudes, values towards their life Problems and situations. It is most useful
technique for evaluating the Behaviors of children
It is technique of evaluation in which behavior are observed in a natural Situations.

“It is thorough study based on visual observation. Under this Technique group behaviors and
social institutions problems are Evaluated.”

Rating Scale:

Ratting is term applied to express opinion or judgment Regarding some situation, object or
character. Opinions are usually Expressed on a scale of values; rating techniques are devices
by which Such judgments may be quantified.

“Rating is an essence and direct observation.”

“A rating scale ascertains the degree, intensity and frequency of A variable.”

Use the following tools to collect or analyze data:

38
 4 Chapter 4: overview of Data collected

The aim of this paper is to analyze the performance of a mutual fund by applying statistical tools and
secondary research on the previous ten years’ annual returns of the fund and coming up with a conclusion
based on the results of the findings. Analysis of the previous ten years’ annual returns will be used to
analyze the risk and return of the mutual fund and propose suitable conclusions pertaining to future
investments in the mutual funds.The mutual fund under consideration has not displayed a consistent
upward or downward trend. It seems that market forces and the external environment have played a
great role in influencing the returns of the mutual fund. The annual returns of the mutual fund for the
past ten years

The mutual fund investment is a very good opportunity to get a high premium on investments although it
possesses a higher degree of risk than other mutual funds. The mutual fund shows great potential for
reaping higher returns but there is greater risk associated with this mutual fund than with other funds in
the industry The conclusion to be drawn from the above analysis is: investment in this mutual fund is not
a bad option if the investor is ready to take a significantly higher amount of risk apart from the existing
market risk.

4.1 1 Response Rate

OVERVIEW OF DATA COLLECTED:

The data collected for this research study is been collected by the circulation of questionnaire created by
using Google forms. The data is collected from Mumbai suburban region by using questionnaire 62
response have Been collected by various respondent which belong to various status, gender, or
educational background from Throughout the Mumbai suburban region. Question have been framed and
asked on various variables or Problems which affects the quality of procedures in Commodity Exchanges.

RESPONSE RATE:

The data has been collected for this research study by the circulation of questionnaire by using google
forms In the Mumbai suburban region. The response rate collected by using the questionnaire for this
research study Is at 62 responses from various group of responded from the Mumbai suburban region as
a sample size for the Research study.

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PROFILE OF RESPONDENTS:

The data collected for this research study is been done by using questionnaire. The profile of the
responded Are as follows:

1. Student:

The first profile of the responded is the student who are being doing graduation in the field of the finance
and Financial market or else who have knowledge related finance.

2. Professional:

The second type of the responded is professionals responded who are having the knowledge in the field
of Finance and financial market or else are the people who have knowledge in the field of finance but are
not Related directly to this field of finance.

3. Business class:

The third type of the responded is business class responded who are having their business in the field
of finance And financial market or else are the people who have knowledge in the field of finance but
are not related Directly to this field of finance.

4. Service class:

The forth type of the responded is service class responded who are working or having the job in the field
of Finance and financial market or else are the people who have knowledge in the field of finance but are
not Related directly to this field of finance.

4.1 3Reliability Test

Reliability is the consistency of our measurement, or the degree to which an instrument measures the
same Way each time it is used under the same condition with the same subjects. A measure is considered
reliable if A person’s score on the same test given twice is similar. It is important to remember that
reliability is not Measured, it is estimated. There are two ways that reliability is usually estimated:
test/retest and internal

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Percentage Anylisis

Pie charts

In the above figure out of 62 response 46.8% people were between 20-30 age group
45.2% people were below 20 age 4.8% people were above 40

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In the above figure out of 62 response 64.5% people say yes
And rest of the people that means 30.6% people were say maybe

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From the above figure 43.5% people were choose
Balance plan 33.9% people were choose Equity plan
21% people were choose income plan

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On the above figure

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In the above figure risk rate are 36 for 58.1% then comes 14 for 22.6% then it’s comes to 6 for
9.7% 5 for 8.1 % and 1 for 1.6%

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46
In the above figure listing there money 24.4% people were respond to the Liquidity 46.8% people
for the low Risk 48.4% people were respond to the high Return and rest of1.6% people respond
to the I don’t know

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In the above figure 37.1% people were like to receive their return in dividend Payout 30.6%
people were would like dividend re investment 30.6% people in worth in net value

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In the above figure 50% people says better return 24.2% people says regular income 14.5%
people says tax benefit and 11.3% people says for the diversification

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In the above figure 38.7% people say lack of knowledge prevent them fro investing their money
24.2 % people says lack of confidence 21% says difficulty in selection and 11.3% says from the
bitter past experience

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 Chapter 5: Summary of findings

This research were based on mutual fund and the people who know about mutual fund and collect
their response This study helped us to find some of the various variables of the aspect for knowledge
of mutual fund their risk their Returns their percentage of return

5.1 Major Findings ( hypotheses testing)

Highly volatile market, do you think Mutual Funds are a destination for Investments?

This study help us to find out the response out of 62 64.5% people say yes

And rest of the people that means

30.6% people were say maybe for the highly volatile market

Mutual Fund Plan do you consider the best?

43.5% people were choose

Balance plan 33.9% people were choose Equity plan

21% people were choose income plan

How long would you like to hold your Mutual Funds’ Investments?

38.7% people were like to hold their mutual fund for 1-3 years
29% people for the 4-6 years
16.1% people for the 7-10 year and
16.1 % for the more than 10 years

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How do you rate the risks associated with Mutual Funds?

Risk rate are 36 for 58.1%

then comes 14 for 22.6%
then it’s comes to 6 for 9.7% 5 for 8.1 % and 1 for 1.6%

While listening your money which factor you prefer more ?

37.1% people were like to receive their return in dividend Payout

30.6% people were would like dividend re investment
30.6% people in worth in net value

How would you like to receive the return every year

50% people says better return

24.2% people says regular income
14.5% people says tax benefit and 11.3% people says for the diversification

Which factors prevent you to invest in mutual fund ?

38.7% people say lack of knowledge prevent them fro investing their money

24.2 % people says lack of confidence 21% says difficulty in selection and 11.3% says from the bitter
past experience

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5.2 Implications of findings

Many of the methods and tools described in this handbook lead naturally from collecting and
analysing data (i.e., establishing what the problem is) to planning what needs to be done to address
the issues raised. For example, a healthwalk may reveal that part of a community is using a water
source particularly vulnerable to pollution for its drinking water. Indeed, we have seen in Chapter 5
the impact of information gathered during a healthwalk on project design and implementation.
Similarly, information from focus group discussions and semi-structured interviews may reveal a
higher incidence of diarrhoea among this group. Presentation of these findings to the community will
almost inevitably lead to a discussion of what needs to be done to remedy the situation, moving the
emphasis from data collection to implementation. Thus a hygiene evaluation study does not end with
the presentation of findings. It should lead to follow-up action on the basis of the findings.

Whether or not participatory approaches are given importance in the evaluation, the end result of
the study will be the identification of high risk hygiene practices which currently exist, embedded in a
context of local physical conditions, beliefs, and ideas. You will almost inevitably advocate that follow
up action should include hygiene promotion activities. The goal of any hygiene promotion project
must be to influence people to abandon the high risk practices identified in favour of low risk, safe
practices. But, what influences people’s decisions to change their normal practice? Many studies have
shown that the answer to this question is “not received knowledge alone.” Commonly, four factors
influencing behavioural change are identified:

• Facilitation. The new practice makes life easier for the person adopting it.
• Understanding. The new practice makes sense in the context of existing local knowledge/ideas.
• Approval. Important and respected people in the community approve of and have adopted the
practice.
• Ability to make change. It is physically possible for the person concerned to make the necessary
changes.
Research implications suggest how the findings may be important for policy, practice, theory, and
subsequent research. Research implications are basically the conclusions that you draw from your
results and explain how the findings may be important for policy, practice, or theory. However, the
implications need to be substantiated by evidence and the study’s parameters need to be explained
and the limitations taken into account to avoid over-generalization of results.

Recommendations urge specific actions to be taken with regard to policy, practice, theory, or
subsequent research. They are specific suggestions that you make with regard to further research on
the topic. For instance, you can make recommendations on subsequent research that can be
conducted, especially, if there is an interest in generalizing the findings beyond the study’s
parameters. You may have identified gaps in the literature that should be addressed, and to which
your study may or may not have contri

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 Chapter 6: discussion, recommendations and conclusions

6.1 Discussion on findings

Conclusion and recommendations are important in the research process. Conclusions interpret
the findings of the research. It answers the statement of the problem and accepts or rejects the
hypothesis. Recommendations come after the conclusions, these are the researcher’s opinions
supported by the research findings The interpretations given by the researcher of the significance
of the findings of a research project for the client’s business, along with recommendations for
action. You can include references in the conclusion, but it is advisable not to include any new
references. This is because you do not have space in the conclusion to discuss any new
references in enough detail.

The idea of strategy implementation might at first seem quite straightforward, Namely that the strategy
is formulated and then implemented. However, Transforming strategies into action is a far more complex
and difficult task and This was confirmed in the review of strategy implementation literature. This is
Further corroborated by the research results from this study which showed that Respondents were far
less satisfied with the actions associated with strategy Implementation, than with strategic planning. In
addition, based on the Findings from the literature review, a number of impeders of strategy
Implementation were identified. The research findings confirmed that Numerous of these impeders are
also eminent in the failure of strategy Implementation in the South African hotel industry.

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The use of strategic planning and implementation principles The first research objective investigated the
extent to which strategic planning And implementation principles and concepts of strategic management
are Used within the hotel industry in South Africa. A number of conclusions can be drawn from the results
presented in chapter Four and which pertains to the first research objective. Although the sample

6.2 Recommendations

The final section involves the last part of your academic performance; how to launch the results and
conclusions into the future. Is there a need for further investigation and how? What are the perspectives
of your results and conclusions? The Perspectives are where you once again broaden the thesis, and point
out where your results can be implemented. Recommendations are sometimes included in the
Conclusions.

The fourth stage is to draw some recommendations for action to be taken on the basis of the analysis,
interpretation, and judgement of study findings. The Recommendations section of a report normally
follows the discussion and conclusions and should address the following questions.

• What are the implications of the findings, based on your analysis, interpretation, and judgements? What
are the implications:

• for your particular project?

• for other projects that may be interested to learn from your findings?

• for any other interested parties, such as researchers?

• What should be done by your project and other stakeholders on the basis of the analysis, interpretation,
and judgement of your study results?

6.3 Conclusion

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You can include references in the conclusion, but it is advisable not to include any new references. This is
because you do not have space in the conclusion to discuss any new references in enough detail. To close
the discussion without closing it off, you might do one or more of the following: Conclude with a quotation
from or reference to a primary or secondary source, one that amplifies your main point or puts it in a
different perspective.

When you first skim an article, it may be useful to go straight to the Conclusion and see if you can figure
out what the thesis is since it is usually in this final section. The research gap identified in the introduction
indicates what the researchers wanted to look at; what did they claim, ultimately, when they completed
their research? What did it show them—and what are they showing us—about the topic? Did they get the
results they expected? Why or why not? The thesis is not a sweeping proclamation; rather, it is likely a
very reasonable and conditional claim.

Nearly every research article ends by inviting other scholars to continue the work by saying that more
research needs to be done on the matter. However, do not mistake this directive for the thesis; it’s a
convention. Often, the authors provide specific details about future possible studies that could or should
be conducted in order to make more sense of their own study’s conclusions

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