A COMPARATIVE ANALYSIS OF PERFORMANCE OF

SELECTED ELSS MF SCHEMES.

Submitted in partial fulfilment of PGDM

PGDM BATCH 2022 - 2024

Faculty Guide Submitted by

Name: Majjiga Pallavi
Designation: Reg No: 18121

PGDM Class of 2022 – 2024

1
A COMPARATIVE ANALYSIS OF PERFORMANCE OF
SELECTED ELSS MF SCHEMES.

Submitted in partial fulfilment of PGDM

PGDM BATCH 2022 - 2024

Majjiga Pallavi
Reg No: 18121
Specialization: Finance

(Signature) (Signature)
Faculty Guide Director

(Signature)
External Examiner

PGDM Class of 2022 – 2024

2
 Declaration

I, Majjiga Pallavi hereby declare that the project titled “A COMPARATIVE ANALYSIS OF
PERFORMANCE OF SELECTED ELSS MF SCHEMES” is an original work undertaken by me
under the guidance of Dr. Deekshitulu Vempati. The report submitted is a bona-fide work of my own
efforts and has not been submitted to any institute/university/conference or published before.

Signature of the Student

Name of the Student: Majjiga Pallavi

Date:
Place: Hyderabad

3
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& Management, Boston House, Hyderabad-78 has been given the permission to do his/her summer
internship programme at our organization for the period of _____________ to _______________
under the guidance of (Name of the Corporate guide).

Name of the Company:

Address:

Date of Joining:
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Topic of the Project:

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Signature:
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4
 Faculty Guide Certificate

I, Prof. Dr Deekshitulu Vempati Certify Ms. Majjiga Pallavi that the work done and the Summer
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Signature with Seal

Date:

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with ________________________________________________(Name of the organization) from
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 Acknowledgement

I take this opportunity to express my thankfulness to who helped me in

me understand the concepts and implementing it in a practical way,
making this project a reality.

It was my privilege to word under the guidance of Dr. Deekshitulu

Vempati as he has always been supportive and encouraged me
towards the successful completion of the project.

My deep sense of gratitude to Mr. N. Shiva Kumar, Senior Manager of

Bajaj Financial Securities Ltd, for his support and guidance.

Lastly, I thank the Almighty God, my family and friends for their
constant support, strength and encouragement without which this
project would have been a distant reality.

Majjiga Pallavi

7
 FEEDBACK ON SUMMER INTERNSHIP PROGRAM
(To be filled up by the Corporate Guide/Departmental Head)

Name of the Student: Majjiga Pallavi

Title: A COMPARATIVE ANALYSIS OF PERFORMANCE OF SELECTED ELSS MF
SCHEMES.

Sl No Parameter Excellent Very Good Good Average Poor

5 4 3 2 1
1 Extent of conceptual reading &
Clarity
2 Comprehension of the project
3 Seriousness, sincerity & Thoroughness
in planning before the study started.
4 Sense of responsibility and Commitment
5 Time and quality orientation
6 Initiative, drive and enthusiasm
7 Communication effectiveness and
keeping the superiors informed about
the progress
8 Prevention of mistakes and seeking
guidance from the experienced persons
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Envisaged
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& breadth)
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vis purpose of the study
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Signature:
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Name of the Student: Majjiga Pallavi

Internship Title: A COMPARATIVE ANALYSIS OF PERFORMANCE OF SELECTED ELSS
MF SCHEMES.

Faculty Guide Consultation Corporate Guide Consultation

S. No Date Consulted Topic Signature S. No Date Consulted Topic Signature

9
 TABLE OF CONTENTS

Chapter Particulars Page No

I Executive Summary 11
Introduction
2.1 Conceptual Background 12
2.2 Objectives 18
II
2.3 Purpose 19
2.4 Methodology 19
2.5 Limitations 19
III Industry Analysis 20
IV Company Analysis 24
V Activity Specific Analysis 35
Conclusion
7.1 Findings 40
VI
7.2 Suggestions 40
7.3 Conclusion 41
VII Learnings from the SIP 42
References 42

10
 CHAPTER 1
Executive Summary

i
Executive Summary:

The performance of a few Equity Linked Savings Scheme (ELSS) mutual fund schemes is compared
in this research. In India, ELSS funds are tax-advantaged investment choices that combine the
advantages of long-term equity investments with tax deductions. This analysis's goal is to assess these
schemes' effectiveness and offer guidance to potential participants.

ELSS mutual fund schemes from HDFC MF, ICICI MF and Axis MF are the subject of the study.
Over a five-year period, performance information and financial indicators, including annual returns,
risk indicators and portfolio composition, have been gathered and examined.

By comparing portfolio return, benchmark returns and risk-free rate we can know which one from
these three AMCs are performing good and which one is having much risk to invest in.

Investors should carefully examine their risk appetite, investment horizon, and financial goals before
making investing decisions because previous performance is not a guarantee of future outcomes. It is
recommended to seek the advice of a seasoned financial advisor.

This comparative analysis offers insightful information about the performance of particular ELSS
mutual fund schemes, assisting investors in selecting investments that are in line with their financial
goals.

Before making any investment decisions, it's crucial to conduct additional research and analyse the
most recent data and performance metrics. A financial advisor should be consulted to ensure that your
investing objectives and risk tolerance are in line.

11
CHAPTER 2
Introduction

11
ii
2.1 INTRODUCTION TO MUTUAL FUNDS

Mutual funds are types of investment vehicles that pool the funds of many different individuals to
invest in a variety of securities, including stocks, bonds, and other financial instruments. They are run
by qualified fund managers who choose investments on the investors' behalf. The idea behind mutual
funds is founded on the idea of diversification, which distributes investment risk across a variety of
assets and lessens the effect of any one investment's performance on the portfolio as a whole. Investors
can have access to a variety of investment options that might otherwise be difficult or expensive to
acquire individually by making an investment in a mutual fund. Individual investors have access to
various benefits through mutual funds. To start with, they offer qualified management experience,
enabling investors to profit from the fund managers' expertise and understanding. To find possible
investment opportunities, these experts conduct in- their investments. Mutual funds also give investors
the chance to take part in a variety of asset classes and investing methods. Equity funds invest largely
in equities, fixed income funds concentrate on bonds, balanced funds blend stocks and bonds, and
speciality funds focus on certain industries or themes. Due to the variety, investors can select funds
that fit their time horizon, investing objectives, and risk tolerance. In order to cover the costs involved
with operating the fund, mutual funds levy fees and expenditures. These costs may include
administration fees, overhead costs, and sales loads (where depth study and analysis. They then base
their conclusions on their evaluation of the market environment. Liquidity is another benefit of mutual
funds. Mutual fund units, in contrast to individual stocks or bonds, may be purchased or sold at the
fund's net asset value (NAV) on any business day. This liquidity offers flexibility and convenience by
making it very simple for investors to enter or exit necessary). Before choosing an investment,
investors should carefully read the prospectus of the fund to understand the costs and fees associated.
Individual investors can easily and conveniently participate in the financial markets through mutual
funds. They provide a variety of investment options, expert management, liquidity, and diversity.
Before investing in any mutual fund, however, investors must perform their due diligence, evaluate
their personal financial goals, and comprehend the dangers involved. When selecting a mutual fund,
investors should take into account aspects including their investing objectives, risk tolerance, fees,
historical performance, and fund management. Before making an investment in a mutual fund, it's
crucial for investors to carefully read the prospectus, which contains comprehensive information on
the fund's investment aim, strategy, risks, and fees. Individual investing accounts, retirement accounts
(such IRAs and 401(k)s), and employer-sponsored retirement plans are all possible places to keep MF.

12
TYPES OF MUTUAL FUNDS:

By Structure

1. Open - Ended Schemes:

An open-end fund is one that accepts subscriptions all year round. There is no set maturity for these.
Investors can easily purchase and sell units at prices that are proportional to Net Asset Value (NAV).
Liquidity is the main characteristic of open-end schemes.

2. Close - Ended Schemes:

The specified maturity period for a closed-end fund typically ranges from three to fifteen years. Only
within that time period are subscriptions to the fund accepted. At the time of the initial public offering,
investors can purchase units of the plan and later sell them on stock exchanges where they are listed.
Some close-ended funds offer the option of selling the units back to the Mutual Fund through
recurring repurchases at NAV-related prices in order to give investors an exit route. According to
SEBI Regulations, the investor must be given access to at least one of the two exit options.

3. Interval Schemes:
This type of scheme, which combines the advantages of both open-ended and close-ended schemes, is
known as an interval scheme. The units may be offered for sale or redemption at set intervals at NAV-
related prices, or they may be traded on the stock exchange.

By Nature

1. Equity Fund:
These funds allocate the most percentage of their corpus to equity assets. Depending on the fund
manager's opinion on various companies and the various schemes, the fund structure may change.
Following are the subclassifications of the equity funds according to their investing goals:
 Diversified Equity Funds
 Mid-Cap Funds
 Sector Specific Funds

13
  Tax Savings Funds (ELSS)
Since equity investments are designed to be held for a longer period of time, equity funds score highly
on the risk-return matrix.

2. Debt Funds:
Debt funds are financial products that pool the funds of numerous investors to buy fixed-income
securities like corporate and government bonds as well as money market instruments. These funds
seek to provide returns through capital growth and interest income. Debt funds give investors an
opportunity to diversify their investment portfolio while supplying regular income and liquidity, and
are typically seen as lower risk than equity funds.
Debt funds are further classified as:
 Gilt Funds:
 Income Funds
 Monthly Income Plan (MIPs)
 Short Term Plans (STPs)
 Liquid Funds

3. Balanced Funds:
They are a mix of equity and debt funds, as their name suggests. They invest in both fixed income and
equity instruments, which is consistent with the scheme's stated investment aim. The goal of these
programmes is to provide investors the best of both worlds. Growth is provided by equity, while return
stability is provided by debt.

(Note: Also, mutual funds can be generally categorised according to an investing criteria, namely,
Each fund category is supported by an investment philosophy that is pre-defined in the objectives of
the fund. The investor can match his own investment demands to the goal of the fund and make
investments as a result.)

14
By Investment Objective:

Growth Schemes:
Growth schemes are another name for equity plans. These programmes seek to provide capital growth
over the course of a medium- to long-term period. These programmes typically invest a sizable portion
of their funds in stocks and are willing to accept a short-term value fall in exchange for potential future
appreciation.

Income Schemes:
Income schemes and debt schemes are synonyms. These schemes want to give investors a consistent
stream of income. The majority of the time, these schemes invest in fixed income products like bonds
and corporate debentures. Such plans might have a limited ability to increase capital.

Balanced Schemes:
Balanced Schemes periodically distribute a portion of the income and capital gains they generate in an
effort to provide both growth and income. These investments are made in fixed income securities and
shares in the ratio specified in the offer paperwork, which is typically 50:50.

Money Market Schemes:

Money market schemes seek to offer moderate income, convenient liquidity, and capital preservation.
The majority of the time, these schemes invest in safer, short-term products including treasury bills,
CDs, commercial paper, and inter-bank call money.

Load Funds:
A load fund is one that imposes an exit or entry commission. In other words, a commission will be due
each time you acquire or sell fund units. Usually, entry and exit loads fall between 1% and 2%. If the
fund has a strong track record of performance, paying the load can be worthwhile.

No-Load Funds:
A No-Load Fund is one that does not impose an exit or entry commission. In other words, there is no
commission due on the acquisition or selling of fund units. A no load fund has the benefit of investing
the entire corpus.

15
Other Schemes:

Tax Saving Schemes:

Tax-saving plans provide investors with tax refunds in accordance with the various tax regulations that
are periodically enacted. Contributions made to any Equity Linked Savings Scheme (ELSS) are
eligible for a reimbursement under Section 88 of the Income Tax Act.

Index Schemes:
Index schemes aim to mimic the performance of a certain index, such as the NSE 50 or the BSE
Sensex. Only the equities that make up the index will be included in the portfolio of these schemes.
The weighting of each stock relative to the overall holding will be the same as that of the stock index.
Because of this, the returns from such strategies would be roughly comparable to those of the Index.

Sector Specific Schemes:

These are the funds or schemes that invest exclusively in the securities of the industries or sectors
listed in the offer documents. Examples include stocks in pharmaceuticals, software, fast-moving
consumer goods (FMCG), and oil. The performance of the corresponding sectors and industries affects
the returns in these funds. Although some funds could offer larger returns, they are riskier than
diversified funds. Investors must monitor the success of certain sectors and industries and depart at the
right time.

16
Equity Linked Savings Scheme:

Equity Linked Savings Scheme (ELSS) is a type of mutual fund that offers tax benefits under Section
80C of the Indian Income Tax Act. ELSS funds are a desirable investment choice for people looking
for possible long-term wealth appreciation because they invest largely in equity or equity-related
products.

Tax Benefits: ELSS funds give investors tax advantages. Under Section 80C of the Income Tax Act,
investments made in ELSS funds are eligible for a tax deduction of up to Rs. 1.5 lakh in a fiscal year.
This deduction lowers taxable income, which lowers the tax obligation.

Lock-in Period: ELSS funds come with a mandatory lock-in period of three years, which is the
shortest among all tax-saving investments under Section 80C. Once invested, you cannot redeem or
withdraw the funds before the completion of the lock-in period.

Equity-oriented: Investors can access the stock market through ELSS funds, which invest primarily in
equities. When compared to other debt-oriented tax-saving strategies, this equity exposure can produce
longer-term returns that are higher, but it also carries more market risks.

Systematic Investment Plan (SIP): Systematic Investment Plans (SIPs) are a flexible way to invest
with ELSS funds. SIP enables investors to make fixed investments at predetermined intervals, like
monthly or quarterly, which aids in rupee-cost averaging and does away with the necessity for market
timing.

Diversification: ELSS funds invest in a broad portfolio of stocks from various market capitalizations
and industry sectors. The risk involved with investing in individual stocks is decreased thanks to this
diversification.

Growth and Dividend Options: Growth and dividend returns are the two main possibilities for ELSS
funds. While the dividend option distributes earnings to investors on a regular basis, the growth option
allows for returns to be reinvested back into the programme.

17
Performance and Risk: The success of ELSS funds is correlated with stock market performance.
Market conditions and the fund manager's investment choices can affect the results. Before making an
investment, it is critical to assess the fund's risk profile and past performance.

Long-term Investment: ELSS funds are made to help with tax planning and long-term wealth growth.
In order to take advantage of the potential growth of stocks and weather short-term market turbulence,
investors need have a long-term investment horizon of at least 5-7 years.

KYC Requirements: Before investing in ELSS funds, investors need to complete the Know Your
Customer (KYC) process by providing necessary documents such as identity proof, address proof, and
PAN card details.

Redemption and Exit Load: Investors can redeem their ELSS fund units after the three-year lock-in
period has ended. If units are redeemed before a set period, some funds may impose an exit load.
Before investing, it is essential to review the exit load structure of the fund.

(Note: Even while ELSS funds have the potential for higher returns and tax advantages, investing in
mutual funds is always risky. Before making any investing decisions, it is advisable to speak with a
financial counsellor or do extensive research.)

2.2 OBJECTIVES OF THE STUDY:

1. To understand Mutual Fund Industry and know which scheme gives best returns.
2. Analyse ELSS schemes of 3 different AMCs in India.
3. To help an investor (Employee) make a right choice of investing in Mutual Funds ELSS gives
them tax relief.
4. Presenting mutual funds as a "productive avenue" for investing activity.
5. To support a prudent investment decision while taking into account the underlying
risk considerations.

18
2.3 PURPOSE OF THE STUDY:

 To spread awareness among the people about Mutual Funds, it’s importance and benefits.
 Mutual Fund is a globally proven instrument.
 Although mutual funds, are "unit trusts," as they are known in some parts of the world, have a
long and profitable history, in recent years they have gained popularity among millions of
people worldwide.

2.4 METHODOLOGY:

Secondary Data: The secondary data is collected from the HDFC i.e., equity linked saving scheme fact
sheets and from books, relevant magazines and also browsed from websites.
The ratios used here are:
 Sharp Ratio – RP – RF / S
 Treynor Ratio – RM – RF / b
 Beta calculation – N( ΣXY) -  ΣX  ΣY / N( ΣX ²) – (Σx) ²

1.5 LIMITATIONS:

 This study is only limited for 3 AMCs, but this also applicable for other AMCs.
 This study is based on secondary data available on websites like moneycontrol.com.
 This study is limited only for ELSS in 3 AMCs.

19
CHAPTER 3
Industry Analysis

iii
3.1 INDUSTRY ANALYSIS OF MUTUAL FUNDS

Mutual funds are financial instruments that pool the funds of many individuals to invest in a variety of
securities, including stocks, bonds, and other assets. A mutual fund industry analysis entails evaluating
a range of variables that affect the performance, expansion, and trends of the mutual fund sector. Here
are some important factors to think about:

Market Size and Growth:

Examine the mutual fund industry's overall size, including assets under management (AUM), and
assess its yearly growth rate. Take into account elements like net inflows and outflows, the launch of
new funds, and the market share of various fund kinds.

Regulatory Environment:
Be aware of any recent changes to the rules or compliance requirements that apply to mutual funds.
Analyse how regulatory changes may affect fund operations, costs, and investor protection.

Fund Performance:
Analyse the performance of various mutual fund categories, including equities funds, fixed-income
funds, and balanced funds. Analyse data points such as average returns, risk-adjusted returns, expense
ratios, and fund manager performance histories. Determine the top-performing funds and the newest
investment trends.

Investment Trends:
Identify the current investment patterns in the mutual fund sector. This could be caused by a variety of
variables, including a rise in interest in thematic funds, passive/index funds, sustainable/ESG
investing, and alternative investments. Determine the effect these trends have on investor preferences
and capital flows.

Distribution Channels:
Consider the role that fund firms, financial advisors, brokerages, and internet platforms play in the
mutual fund distribution environment. Examine the market shares of various distribution channels and
any new distribution model developments, such as robo-advisors or direct-to-consumer platforms.

20
Competitive Landscape:
Study the mutual fund industry's competitive dynamics to better understand the competitive landscape.
Determine the major and minor players, and evaluate their market shares, product lines, financial
plans, and reputations for their brands. Analyse the entry obstacles and level of competition in the
various fund categories.

Fees and Expenses:

Examine the mutual funds' fee schedules and expense ratios. Fees for various fund types should be
compared, and the effect of fee compression on profitability should be evaluated. Think about the
move towards low-cost funds and how charge structures affect investor behaviour.

Investor Sentiment and Behavior:

Technology and Innovation: Examine how these two factors are affecting the mutual fund sector. The
development of fintech solutions, portfolio analytics, digital platforms, and automation of fund
operations are some examples of these topics. Examine how technology is influencing investor
experiences and fund management procedures. Consider the attitudes and actions of investors towards
mutual funds. Examine elements including risk tolerance, investment horizons, investor education, and
preferences for active or passive strategies. Take into account any behavioural biases that can have an
effect on investment choices and fund flows.

Global and Economic Factors:

Take into account monetary policies, geopolitical developments, and macroeconomic trends that may
have an impact on the mutual fund sector. Analyse the effects of changing regulations, interest rates,
inflation, market volatility, and other factors in various geographic areas.

(Note: You can learn more about the mutual fund industry's current situation, spot growth prospects,
and comprehend the difficulties experienced by market participants by doing a thorough examination
of these elements.)

21
ELSS ANALYSIS:

Tax Benefits:
ELSS funds are popular among investors looking to reduce their tax burden since they often qualify
for tax incentives under Section 80C of the Income Tax Act. Tax deductions for investments made in
ELSS funds are allowed up to a certain amount.

Lock-in period:
ELSS funds normally have a three-year lock-in term, during which time investors are unable to
redeem their shares. The lock-in period makes sure investors stick with their investments for a set
amount of time, which can assist in reaching long-term financial objectives.

Diversification:
ELSS funds invest in a variety of stocks that spans a range of market capitalizations and industry
sectors. As a result of this diversification, the overall portfolio's performance of individual stocks is
less affected by individual stock performance and the investment risk is spread out.

Risk and Return:

Equity investments in ELSS funds are subject to market-related risks. The returns produced by ELSS
funds are influenced by market volatility and can change according to how well the underlying stocks
perform. Before purchasing ELSS funds, investors should think about their investment horizon and
risk tolerance.

(Note: It's important to remember that market conditions, industry analyses, and mutual fund
performance—including that of ELSS funds—can change over time. Before making any investing
selections, it is wise to do extensive research, think about one's own financial objectives and risk
tolerance, and talk with a financial counsellor.)

Fig 3.1
22
 TOP 10 AMCs IN INDIA

S.No AMC Asset Managed

(as on 31-Mar-2023)
1. SBI Mutual Fund ₹ 700,990.72 crores
2. ICICI Prudential Mutual Fund ₹ 509,588.32 crores
3. HDFC Mutual Fund ₹ 437,876.34 crores
4. Nippon India Mutual Fund ₹ 287,827.85 crores
5. Kotak Mahindra Mutual Fund ₹ 284,073.77 crores
6. Aditya Birla Sun Life Mutual Fund ₹ 261,232.11 crores
7. Axis Mutual FUND ₹ 226,881.21 crores
8. UTI Mutual Fund ₹ 223,698.69 crores
9. Bandhan Mutual Fund ₹ 111,592.46 crores
10. DSP Mutual Fund ₹ 107,067.08 crores

Table 3.1

23
 CHAPTER 4
Company Analysis

iv
4.1 HDFC MUTUAL FUND COMPANY ANALYSIS:

In India, one of the top asset management firms is HDFC Mutual Fund (HDFC MF). It is a division of
HDFC Bank, one of the biggest banks in the nation's private sector. Retail and institutional clients can
choose from a large selection of investment products and services offered by HDFC MF.

Reputation and Performance:

The mutual fund industry holds a high regard for HDFC MF. It has a track record of successfully
managing assets and giving investors reliable returns over time. The business has a lengthy history of
offering top-notch investment solutions and has received numerous honours for its work.

Diverse Product Portfolio:

To meet the demands of various sorts of investors, HDFC MF provides a wide choice of investment
products. It offers a variety of specialised funds, including index funds, hybrid funds, debt funds, and
equity funds. Pension funds and systematic investment plans (SIPs) are other products offered by the
business.

Strong Fund Management staff:

HDFC MF has a talented and knowledgeable staff of fund managers who are in charge of selecting
investments. The organisation has a robust research staff to find new investment possibilities and
adheres to a clearly defined investment strategy. One of HDFC MF's primary advantages is the
knowledge of its fund managers.

Strong Distribution Network:

In India, HDFC MF has a substantial distribution network that consists of branches, wholesalers, and
online marketplaces. The organisation can reach a big investor base thanks to its broad reach and offer
its investment goods and services to clients all over the nation. The wide distribution network helps
the business expand and gain market share.

Investor Support and Education:

HDFC MF emphasises investor education and offers a range of tools and resources to assist investors
in making knowledgeable investing decisions. The company offers interactive internet platforms,
publishes research reports, and runs monthly investor awareness campaigns. This dedication to
investment education promotes client loyalty and long-term partnerships.

24
Regulatory Compliance:
The Securities and Exchange Board of India (SEBI) regulates mutual fund companies, including
HDFC MF. The business conforms with industry standards and tight regulatory requirements. This
guarantees transparency and investor protection, two important aspects of the mutual fund sector.

Brand Value:
HDFC MF benefit from its affiliation with HDFC Bank, one of India's most reputable and well-known
financial companies. The HDFC's strong brand value contributes to credibility-building and investor
attraction. Additionally, HDFC MF has a competitive advantage over other smaller market participants
thanks to its well-known brand.

(Note: Despite the advantages indicated above, before making any investment decisions it is crucial to
take into account possible dangers and market conditions. Before investing in HDFC Mutual Fund or
any other mutual fund, it is advised to speak with a financial professional or do more research focused
on your investment goals and risk tolerance.)

ELSS IN HDFC:

ELSS Overview: The ELSS funds, which are tax-saving mutual funds that qualify for tax deductions
under Section 80C of the Indian Income Tax Act, are offered by HDFC MF.
ELSS funds invest primarily in stocks, providing the possibility of financial appreciation as well as the
advantage of tax advantages.
The three-year lock-in period for ELSS funds is significant because it is the shortest of all Section 80C
tax-saving investing options.

HDFC Mutual Fund

25
4.2 ICICI MUTUAL FUNDS CPMPANY ANALYSIS:

In India, one of the top asset management firms is ICICI Mutual Fund (ICICI MF). It is a division of
ICICI Bank, one of the biggest banks in the nation's private sector. Individual and institutional
investors can choose from a large selection of investment products and services offered by ICICI MF.
Let's examine the business in the context of its key features:

Reputation and Performance:

In the Indian mutual fund sector, ICICI MF has a solid reputation. It has been in operation for a while
and has a history of delivering reliable performance across all of its funds. For its proficiency in
investment management, the business has won various accolades.

Portfolio of Products:
ICICI MF provides a wide selection of mutual funds to accommodate various investment goals, risk
tolerances, and time horizons. Equity funds, debt funds, hybrid funds, index funds, exchange-traded
funds (ETFs), and fund-of-funds are among the company's product offerings. Investors can select
funds that match their investment preferences thanks to this wide selection.

Fund Performance:
In the Indian mutual fund market, ICICI MF has shown competitive performance. Over time, its funds
have outperformed their respective benchmarks in terms of returns. It's crucial to remember that past
success does not guarantee future outcomes, so investors should do their homework before making
any selections.

Research capabilities and investment philosophy:

ICICI MF uses an investment strategy that is research-driven. A committed group of skilled fund
managers and research analysts work for the organisation; they examine market trends, spot
investment possibilities, and come to wise investment selections. It is thought that ICICI MF has
strong research capabilities, which aids in producing alpha for their funds.

Distribution Network:
ICICI MF has a wide distribution network across India, including branches, online platforms, financial
advisors, and tie-ups with various banks. This extensive reach allows the company to cater to a large
customer base and provide investment solutions to investors across different cities and towns.

26
Investor Services and Technology:
To improve the entire investor experience, ICICI MF places a strong emphasis on customer service
and has made considerable investments in technology. It offers mobile apps, online transaction
services, and online investing platforms, making it simple for investors to manage their investments.

Regulation Compliance:
The Securities and Exchange Board of India (SEBI), the nation's regulator of mutual funds, has
established rules that ICICI MF must abide by in order to do its business. Transparency and
investment protection are guaranteed when regulatory requirements are followed.

Assets Under Management (AUM):

ICICI MF's AUM serves as a key barometer of both its market presence and investor confidence. By
the time of my knowledge cutoff in September 2021, ICICI MF had a sizeable AUM, a sign of its
appeal to investors. Please be aware, though, that AUM numbers might alter over time.

(Note: Before making any investment decisions, it's crucial to conduct additional research and analyse
the most recent data and performance metrics. A financial advisor should be consulted to ensure that
your investing objectives and risk tolerance are in line.)

ELSS Offerings:

ICICI MF's ELSS funds give investors the chance to benefit from Section 80C of the Indian Income
Tax Act while taking part in the expansion of the equity market.
The statutory lock-in period for ELSS funds is three years, the shortest of all tax-saving investments
that qualify for tax deductions.
nvestors can select the ICICI MF ELSS fund that best suits their investment objectives and risk
tolerance from a variety of ELSS funds with various investment strategies and risk profiles
.

ICICI Mutual Fund

27
4.3 AXIS MUTUAL FUND COMPANY ANALYSIS:

Axis Mutual Fund is a well-known mutual fund firm in India that provides customers with a variety of
investing products and services. Axis MF, a joint venture between Axis Bank Ltd. and Schroder
Singapore Holdings Private Limited, was established in 2009. The firm seeks to meet the various
needs and objectives of its investors by offering investment solutions.

Products and Services:

Axis MF provides a range of mutual fund schemes across many asset classes, including equity funds,
debt funds, hybrid funds, and solution-oriented funds. They provide both individual and institutional
investors investment choices. To make routine investing and withdrawals easier, the organisation also
provides systematic investment plans (SIPs), systematic transfer plans (STPs), and systematic
withdrawal plans (SWPs).

Investment Philosophy:
Axis MF commits to a disciplined investment philosophy that places an emphasis on thorough
research, risk management, and the development of long-term wealth. The organisation is committed
to choosing assets of high calibre with the potential to generate steady returns over time. By spotting
investing opportunities based on basic analysis and market insights, they hope to produce alpha.

Fund Performance:
Axis MF has a history of producing competitive returns across a range of mutual fund categories.
Based on consistency, benchmark comparisons, and risk-adjusted returns, their funds' performance is
assessed. The company's website, fact sheets, and other materials allow investors to evaluate the past
success of various schemes.

Fund Managers:
The performance of mutual funds is greatly influenced by the skill of the fund managers. Axis MF
employs a group of knowledgeable and talented fund managers that are in charge of overseeing the
investment portfolios. The fund managers carry out extensive research, keep an eye on market trends,
and base their investment choices on their analysis.

28
Customer service:
Axis MF aims to offer its investors top-notch customer service. They have a strong investor support
system that includes investor education programmes, email support, customer helplines, and online
account access. Through timely and effective services, the company focuses on upholding
transparency and ensuring investor happiness.

Regulatory Compliance:
The Securities and Exchange Board of India (SEBI), which establishes rules and regulations for the
mutual fund sector, regulates Axis MF as a mutual fund business. To safeguard investors' interests and
uphold the integrity of the investing process, compliance with these standards is crucial.

Industry Recognition:
For the effectiveness of its funds and all of its services, Axis MF has won numerous industry awards
and accolades. The company's dedication to excellence, innovation, and investor-centric practises is
honoured by these honours.

(Note: It's crucial to remember that this analysis is based on general knowledge about Axis Mutual
Fund and could not be accurate at this time. Before making any investing decisions, it is advised to do
extensive research and speak with a financial expert.)

ELSS IN AXIS MUTUAL FUND:

By doing thorough research, spreading investments across industries and market caps, and upholding a
disciplined approach to investing, Axis MF places a strong emphasis on risk control. It's important to
remember that ELSS investments involve market-related risks, and investors should be ready for
changes in the value of their holdings.
Equity Linked Savings Schemes (ELSS) are a class of mutual fund schemes that invest mainly in
equity and securities with an equity component. Investments up to INR 1.5 lakh in ELSS are eligible
for a tax credit under Section 80C of the Income Tax Act of 1961, however there is a three-year lock-
in period.

AXIS Mutual Fund

29
4.4 COMPANY PROFILE

Bajaj Financial Securities Ltd

Bajaj Finserv is a diversified financial services company with a presence across consumer finance,
commercial finance, life insurance, general insurance, and asset management. The company was
formed in April 2007 as a demerger of the financial services businesses of Bajaj Auto Limited.

Bajaj Finserv has a strong track record of growth and innovation. The company has been ranked
among the top financial services companies in India by various industry bodies. In 2022, Bajaj Finserv
was ranked as the 2nd largest NBFC in India by asset size by the RBI.

Vision:
Mission:
To become one of the Largest
Broking houses with bouquet of We are dedicated to create long term
Financial Products & Services value and exceed our customer
catering to HNI & Retail customer expectations.
segment.

Heads Of The Bajaj Group Companies:

 Bajaj Finserv Limited - Sanjiv Bajaj

 Bajaj Allianz Life Insurance Company Limited - Tarun Chugh
 Bajaj Allianz General Insurance Company Limited - Tapan Singhel
 Bajaj Finance Limited - Rajeev Jain
 Bajaj Finserv District Limited - Rakesh Bhatt
 Bajaj Health Insuretech - Devang Mody
 Bajaj Housing Finance Limited - Atul Jain
 Bajaj Financial Securities Limited – manish Jain
30
Financing Of Bajaj Financial Securities Limited:

1) Margin Trade Funding: By trading with more money than you have available, you can increase
your purchasing power by using margin trade funding. The amount you must pay, referred to
as margin, is only a portion of the entire cost of the shares you have purchased. Bajaj Financial
Securities Limited (BFSL) provides the remaining funds.
2) Loan Against Securities: This type of loan is given in exchange for a portfolio of securities,
such as bonds, mutual funds, and stocks. The best way to create liquidity without losing your
assets is with this method. A loan of up to Rs. 300 crores is available to you. Over 600 equities
and 6000 mutual funds are accepted by BFSL. No fees for partial payments or foreclosure
exist. Only the loan amount that has been used is subject to interest. Based on the pledged
securities, the loan value is determined:
 Bonds & Debt MFs: 80%
 Shares & Equity MFs: 50%
3) IPO Financing: Financing for Initial Public Offerings (IPO): This is a loan instrument made
available for use in IPOs. A loan up to 350 crores of rupees is available to you. It takes 7 to 15
days to repay the loan. Minimum documentation is needed for BFSL. Shares that have been
approved may also be used as margin.
4) ESOP Financing: In the event of a funding shortfall, employees are given the ability to exercise
their ESOPs thanks to ESOP financing. Employees can readily subscribe to their ESOPs
entitled on the exercise date thanks to financing provided by BFSL.

Distribution:

Distribution is the process of selling financial products to investors. Bajaj Financial Securities has a
team of experienced distributors who can help you choose the right financial products for your needs.

 National Pension Scheme (NPS): The National Pension Scheme (NPS) is a flexible investment
programme that aids investors in making retirement plans. It is a voluntary defined
contribution plan, so the amount of pension you receive will depend on how much you
contribute and how well your investments perform over time.The NPS is a fantastic choice to
take into consideration if you're looking for a means to save for your retirement.

31
  US Investment: You can invest in US equities and ETFs through the US Investment service.
To offer this service, Vested Finance, an Investment Adviser registered with the SEC, has
collaborated with Bajaj Financial Securities. A fantastic approach to diversify your portfolio
and get exposure to the US stock market is through US investments.

BFSL offers a wide range of products and services:

Equity: We provide a wide variety of equity-related goods and services, such as trading, research, and
advising. Our research team is made up of some of the most skilled analysts in India, and our trading
platform is one of the most advanced in the sector. We also provide a range of consulting services to
support our clients in making the best possible investment choices.

 Cash Trading
 Derivative Trading
 Bulk & Block Trading
 NRI Trading
 Institutional Broking
 Commodities
 Currency

Broking Tools: To assist our clients in trading more successfully, we provide a range of broking tools.
Modern trading platforms, real-time market data, and a range of analytical tools are some of these
resources.

 Algo

 Charting

 Option Strategies

 Screeners

 Thematics

32
Distribution: We can serve a broad spectrum of consumers thanks to our robust distribution network.
A network of branches, a network of financial advisors, and an online platform make up our
distribution network.

 Mutual Funds
 International Investment
 PMS
 NPS
 Bonds
 AIF
 Structured Products

Leading: We are a major player in the financial services sector in India. We have regularly been listed
as one of India's top brokerage firms. We are additionally participants in the Bombay Stock Exchange
(BSE) and the National Stock Exchange (NSE).

 LAS
 Margin Funding
 Loan for Purchase (Bonds & Funds)
 IPO Financing
 Bond Financing
 OFS Financing
 Structured Finance

BROKING:

Purchasing and selling securities on behalf of clients is known as broking. We provide a variety of
services, such as:

Retail Broking:

Purchasing and selling assets on behalf of individual investors is known as retail broking. Various
services are offered by retail brokers to their clients, including

33
  Discount Broking: BFSL provides discount broking, which includes a minimal per-trade
brokerage fee. It's a terrific choice for those who trade regularly because of this.
 Digital Account Opening: Customers of BFSL can quickly open a trading and demat account
online. Investors who want to get going right away will find this to be a convenient choice.
 Multiple Products: Customers of BFSL have access to a variety of products, including
derivatives, mutual funds, stocks, and bonds. This gives customers the flexibility to invest in
the products that are right for them.
 Seamless Trading: A range of trading platforms, including a web platform, a mobile app, and a
phone trading service, are available from BFSL. Customers now have the freedom to conduct
business whenever and wherever they like.
 Subscription Packs: Three subscription packs are available from BFSL: The Freedom Pack, the
Beginner Pack, and the Professional Pack. The subscription packs a consumer selects will
determine the brokerage rate each trade.

HNI Broking:

Specifically, for high-net-worth individuals, there is a sort of brokerage service called HNI broking.
People having investable assets of more than 10 crores of Indian rupees are categorised as HNIs.
When compared to typical brokerage services, HNI broking services offer a variety of advantages,
including

 Pan India Presence: BFSL has offices in more than 100 cities across India, giving it a national
footprint. This makes it simple for HNI clients to obtain the assistance they require
 Dedicated RM & Dealer: For each HNI client, BFSL designates a dedicated relationship
manager (RM) and dealer. This guarantees that customers may obtain individualised service.
 Flexible Brokerages: For HNI clients, BFSL provides flexible brokerage solutions. Customers
can select the brokerage rate that best suits their needs.
 Customised Capital Market Solutions: BFSL provides HNI clients with customised capital
market solutions. Access to research, trading suggestions, and portfolio management services
are all part of this.
 Instant Pay-out: BFSL offers an instant pay-out facility for HNI clients. This allows clients to
withdraw funds from their trading account on the same day that they sell their investments.

34
35
 CHAPTER 5
Activity Specific Analysis

v
5.1 MEASUREMENTS OF MUTUAL FUNDS' PERFORMANCE:

The Indian mutual fund market, which currently has over 600 schemes and roughly 30 players, is one
of the most popular investment options. However, the average investor has difficulty choosing funds
because there are so many different plans to pick from. Qualitative factors include things like investing
strategy and management style, but the track record of the fund is also a significant predictor.
Although previous performance cannot predict future success, it is the only quantitative way to assess
how well a fund is currently performing. As a result, it's important to accurately evaluate the historical
performance of various Mutual Funds. The performance of a mutual fund scheme should not be
judged solely on the basis of return; it should also take into account the risk taken by the fund manager
because various funds will carry varying degrees of risk. In general, variability or swings in the returns
produced by a fund can be thought of as risk. The risk associated with a fund will be larger the more
its returns fluctuate over a specific time period. Two driving causes are responsible for these swings in
a fund's results. Since different funds will entail differing levels of risk, it is important to consider the
risk carried by the fund manager when evaluating the performance of a mutual fund scheme. Risk can
often be conceived of as variability or volatility in the returns generated by a fund. The greater the
variation in a fund's returns over a certain time period, the greater the risk involved. These fluctuations
in a fund's performance can be attributed to two main factors.

Since the 1960s, a number of notable authors have tried to build composite performance indexes to
evaluate portfolios by comparing alternative portfolios within a given risk class in order to calculate
the risk-adjusted returns of investment portfolios.

The most significant and popular performance indicators are:

 The Treynor Measure

 The Sharpe Measure
 Beta Calculation

35
The Treynor Measure:

This performance metric, developed by Jack Treynor, rates funds based on Treynor's Index.

This index measures the fund's excess return above the risk-free rate of return, which is typically taken
to be the return on government-backed securities because there is no credit risk involved, over a
specified time period, and the systematic risk that goes along with it (beta).

In a symbolic sense, it can be expressed as:

Treynor Ratio = Rp - Rf / β (Where, Rp is return on portfolio, Rf is risk-free rate and β is beta of

portfolio.)

The Sharpe Ratio:

The Sharpe Ratio, a ratio of returns generated by the fund above and beyond the risk-free rate of return
and the entire risk attached to it, is used in this model to assess a fund's performance.

Investors' main concern, according to Sharpe, is the fund's overall level of risk. As a result, the model
assesses investments based on reward per unit of total risk.

In a symbolic sense, it can be expressed as:

Sharpe ratio = Rm – Rf / S.D

Where, Rp is expected rate of return, Rf is risk-free rate and S.D is standard deviation of fund’s
return.

Beta Calculation:

Systematic risk is quantified in terms of beta, which indicates changes in the fund's NAV relative to
the market. The beta of a mutual fund will be larger the more responsive its NAV is to fluctuations in
the market. By comparing a mutual fund's returns to market returns, beta is calculated. Systematic risk
cannot be diversified, however unsystematic risk can be done so by investing in a variety of
instruments. We attempt to more accurately evaluate the competitive power of the Mutual Funds
relative to one another by utilising the risk return relationship.

In a symbolic sense, it can be expressed as: Beta calculation = N( ΣXY) -  ΣX  ΣY / N( ΣX ²) – (Σx) ²

36
5.2 DATA ANALYSIS:

HDFC Mutual Fund:

(Fund manager: Roshi Jain.)

Yea Rp Rm Rf X Y X² XY (X- D²
r X̄)=D

1 1.28 9.33 5.5. 3.83 -4.22 14.66 -16.16 -4.22 17.80

3 23.48 20.14 6 14.14 17.48 199.93 247.16 6.09 37.08
5 15.81 16.18 10 6.18 5.81 38.19 35.90 -1.87 3.49
40.57 45.65 21.5 24.15 19.07 252.78 265.69 58.37

Table 5.1

S.D = ∑ ( X − X ¯ ) ² / N   ∑X / N = 24.15 / 3

= 58.37 / 3 = 8.05

= 19.45

Coefficient = N (∑XY) - ∑X ∑Y / N (∑X²) – (∑X)²

= 3 (265.69) – (24.15) (19.07) / 3 (256.78) – (24.15) ²

= 1.92

Sharpe Ratio = Rm – Rf / S.D Treynor Ratio = Rp - Rf / β

= 40.57 – 21.5 / 19.45 = 45.65 – 21.5 / 1.92

= 0.98 = 12.57

37
ICICI Mutual Fund:

(Fund Manager: Harish Bihani.)

Year Rp Rm Rf X Y X² XY (X- D²
X̄)=D
1 11.26 12.74 5.5 7.24 5.76 52.41 41.70 -3.16 9.98
3 25.80 27.61 6 21.61 19.80 466.99 427.87 11.21 125.66
5 12.01 12.35 10 2.35 2.01 5.52 4.72 -8.05 64.80
49.07 52.70 21.5 31.2 27.57 524.92 474.29 200.44

Table 5.2

S.D = ∑ ( X − X ¯ ) ² / N   ∑X / N = 31.2 / 3

= 200.44 / 3 = 10.4

= 66.81

Coefficient = N (∑XY) - ∑X ∑Y / N (∑X²) – (∑X)²

= 3 (474.29) – (31.2) (27.57) / 3 (524.92) – (31.2) ²

= 0.93

Sharpe Ratio = Rm – Rf / S.D Treynor Ratio = Rp - Rf / β

= 49.07 – 21.5 / 66.81 = 52.70 – 21.5 / 0.93

= 0.41 = 33.54

38
Axis Mutual Fund:

(Fund Mnager: Mr. Jinesh Gopani)

Year Rp Rm Rf X Y X² XY (X- D²
X̄)=D
1 8.45 12.74 5.5 7.24 2.95 52.41 21.35 -3.16 9.98
3 18.15 27.61 6 21.61 12.15 466.99 262.56 11.21 125.66
5 9.13 12.35 10 2.35 -0.87 5.52 -2.09 -8.05 64.80
35.73 52.70 21.5 31.2 14.23 524.92 281.82 200.44

Table 5.3

S.D = ∑ ( X − X ¯ ) ² / N   ∑X / N = 31.2 / 3

= 200.44 / 3 = 10.4

= 66.81

Coefficient = N (∑XY) - ∑X ∑Y / N (∑X²) – (∑X)²

= 3 (281.82) – (31.2) (14.23) / 3 (524.92) – (31.2) ²

= 0.66

Sharpe Ratio = Rm – Rf / S.D Treynor Ratio = Rp - Rf / β

= 35.73 – 21.5 / 66.81 = 52.70 – 21.5 / 0.66

= 0.21 = 47.27

39
CHAPTER 6
Conclusion

vi
6.1 FINDINGS

 After comparing 3 AMCs we can see that Axis MF ELSS and ICICI MF ELSS are less risky
when compared to HDFC MF ELSS.
 But if we look into the history HDFC MF is giving more returns since the inception when
compared to Axis MF and ICICI MF.
 ELSS is a best option for an employee to invest in, as it gives a tax benefit.
 ELSS gives the investors tax relief under section 80c.
 Most of the employees in India are actually investing in MF ELSS to get a tax deduction.

6.2 SUGGESTIONS

For investors:

 Check out the ELSS funds' prior performance if you haven't already. Although previous
performance cannot predict future outcomes, it can offer information about the fund manager's
capacity to produce returns.
 Evaluate the track record, investment philosophy, and experience of the fund management. The
performance of a fund can be significantly changed by a knowledgeable and professional fund
manager.
 The fund's management expenses are shown by the expense ratio. Choose an ELSS fund with
an expense ratio that strikes a reasonable balance between price and performance by
comparing the fee ratios of several ELSS products.

For AMCs:

 Through awareness campaigns, seminars, and digital content, educate investors about the
advantages of ELSS funds, tax benefits, and long-term wealth growth.
 Offer a range of ELSS funds with various risk and investment philosophies. As a result,
investors can select funds based on their objectives and preferred methods of investing.

40
  Provide complete disclosure of all relevant ELSS fund information, such as expense ratios,
past performance, fund management information, and investment philosophies. Investor
confidence and trust are increased by transparency.

6.3 CONCLUSION

Investing in mutual funds has less risk and high return when compared to other investing platforms.
Mutual finds helps us to invest in multiple portfolios. People with low income people can also invest
in mutual funds. Investing in closed ended and ELSS gives employees tax benefit. When evaluating
ELSS funds, investors should diversify their holdings, check the track records of fund managers, think
about expense ratios, review investing methods, and evaluate the lock-in period. Investors can make
wise selections and possibly accomplish their investment objectives by adhering to these
recommendations. Asset management companies must prioritize investor education, provide a variety
of ELSS fund options, uphold transparency, offer user-friendly digital platforms and tools, place a
high priority on customer care, and contact with investors often. These methods can aid AMCs in
gaining and retaining investors, fostering trust, and providing value. Mutual Fund ELSS offers
investors the chance to cut their tax bills and invest in the stock market, and asset management
organizations can profit by providing appealing and expertly managed ELSS funds to fulfill investors'
needs. Before making any investment decisions, it's crucial to conduct additional research and analyse
the most recent data and performance metrics. A financial advisor should be consulted to ensure that
your investing objectives and risk tolerance are in line.

41
 CHAPTER 7

Learning’s from SIP and References

vii
7.1 LEARNINGS FROM SIP

 Internship give me the chance to put my academic theory to use in practical

situations. It helps close the knowledge gap between theoretical learning and
real-world application.
 Internships helped me in developing and improve vital professional abilities like
adaptability, problem-solving, teamwork, and communication. I have these skills
and gets me ready for my future careers to work with experts in a professional
context.
 Internship give me the chance to meet and interact with industry professionals.
For future employment chances, mentorship, and industry insights, developing a
network of contacts this would be helpful.
 I have also learned how to manage with people, because there are people with
different mind-set in corporate world. And when I talked to my clients I learned
so much like their investment plans and how to deal with them.

7.2 REFERENCES

https://www.hdfcfund.com/factsheet

https://www.icicipruamc.com/downloads

https://www.axismf.com/downloads

https://corporatefinanceinstitute.com/resources/data-science/beta-coefficient/

44