A

SUMMER INTERNSHIP PROJECT REPORT ON

“RISK-RETURN AND COMPARATIVE STUDY ON MUTUAL

FUND”

Submitted for the Partial fulfillment of the requirements for the

award of the degree of

Masters in Business Administration

SUBMITTED BY:
Prateep kumar Behera
REGD NO: 2206298109

UNDER THE GUIDANCE OFUNDER THE GUIDANCE OF

FACULTY GUIDE EXTERNAL GUIDE

Mr. ABDUL MUNTAKIM KHAN Mr. TARA PRASAD BEHERA
(Asst. professor) (Senior Asst. manager)
GIFT AUTONOMOUS COLLEGE NJ WEALTH

1
 DECLARATION BY STUDENT

I, PRATEEP KUMAR BEHERA (MBA. 2022-2024), hereby declare that the project
report entitled “Risk, Return and Comparative study of Mutual Fund” is an original
work. The contents of the project report have not been published before and reflect the
work done by me during my Summer Internship of the Management of Business
Administration (MBA) at GANDHI INSTITUTE FOR TECHNOLOGY,
BHUBANESWAR with “NJ India Invest Pvt Ltd”

Date- Name-Prateep kumar Behera

Place-Bhubaneswar Regd. No.-2206298109
GIFT,BHUBANESWAR

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 COMPANY CERTIFICATE

Ref. No. : HR/REC01/TR10636/23082023/12652

Date : 23rd August 2023

CERTIFICATE

This is to certify that Mr. PRATEEP KUMAR BEHERA student of Gandhi Institute For Technology
(GIFT) has successfully completed his project on "RISK RETURN & COMPARATIVE STUDY ON
MUTUAL FUND". The project period was from 15th June 2023 to 31st July 2023.

During this period he was found to be regular and hard working. We wish him all the Best in
his future endeavors.

Vatsal Soni
(Authorised Signatory)

This Letter is digitally generated and does not require signature.

23/08/2023 11:57 AM

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4
 ACKNOWLEDGEMENT

Before we get into thick On my project “Risk, Return and Comparative study of Mutual
Fund”, I would like to add a few words of appreciation for the people who have been a part of this project
right from its inception. Any accomplishment requires the effort of many people and this work is no
different. I have been fortunate enough to get the help and guidance from many people. It is a pleasure to
acknowledge them though still it is inadequate appreciation for their contribution.

I would not have completed this journey without the help, guidance and support of certain people
who acted as guides and friends along the way. I would like to express my deepest and sincere thanks to
my mentor ASST. PROF. ABDUL MUNTAKIM KHAN my college mentor for his invaluable
guidance and help. The project could not be complete without the support and guidance.

I am also thankful to Mr. TARA PRASAD BEHERA and all my office (SENIOR ASSISTANT
MANAGER) friends and colleagues for cooperating with me at every stage of the project. They acted as
continuous source of inspiration and motivated me throughout the duration of the project helping me a lot
in completion of this project.

Prateep kumar Behera

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 TITLE INDEX

SL.NO TITLE PAGE.NO

1 INTRODUCTION 6
2 OBJECTIVE AND OF THE PROJECT 10
3 COMPANY PROFILE 11
4 LITERATURE REVIEW 24
5 RESEARCH METHODOLOGY 26
6 DATA ANALYSIS& INTERPRETATION 35
7 FINDING 45
8 LIMITATION 46
9 SUGGESTION 47
10 REFERENCES 48
11 ABBREVIATION 50
12 CONCLUSION 51
13 ANNEXURE 52

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 Executive Summary
The project was to do Market Research on “Risk, Return and Comparative study of Mutual Fund”for
NJ India Invest Pvt Ltd.
A mutual fund is a scheme in which several people invest their money for a common financial cause.
The collected money invests in the capital market and the money, which they earned, is divided based on the
number of units, which they hold. The mutual fund industry started in India in a small way with the UTI Act
creating what was effectively a small savings division within the RBI. Over a period of 25 years this grew
fairly successfully and gave investors a good return, and therefore in 1989, as the next logical step, public
sector banks and financial institutions were allowed to float mutual funds and their success emboldened the
government to allow the private sector to foray into this area. The advantages of mutual fund are
professional management, diversification, economies of scale, simplicity, and liquidity. The disadvantages of
mutual fund are high costs, over-diversification, possible tax consequences, and the inability of management
to guarantee a superior return. The biggest problems with mutual funds are their costs and fees it include
Purchase fee, Redemption fee, Exchange fee, Management fee, Account fee & Transaction Costs. There are
some loads which add to the cost of mutual fund. Load is a type of commission depending on the type of
funds. Mutual funds are easy to buy and sell. You can either buy them directly from the fund company or
through a third party. Before investing in any fund one should consider some factor like objective, risk, Fund
Manager’s and scheme track record, Cost factor etc. There are many, many types of mutual funds. You can
classify funds based Structure(open-ended & close-ended), Nature (equity, debt, balanced), Investment
objective (growth, income, money market) etc. A code of conduct and registration structure for mutual fund
intermediaries, which were subsequently mandated by SEBI. In addition, this year AMFI was involved in a
number of developments and enhancements to the regulatory framework. The most important trend in the
mutual fund industry is the aggressive expansion of the foreign owned mutual fund companies and the
decline of the companies floated by nationalized banks and smaller private sector players. Reliance Mutual
Fund, UTI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund and Birla Sun Life Mutual
Fund are the top five mutual fund company in India. Reliance mutual funding is considered to be most
reliable mutual funds in India. People want to invest in this institution because they know that this institution
will never dissatisfy them at any cost. You should always keep this into your mind that if particular mutual
funding scheme is on larger scale then next time, you might not get the same results so being a careful
investor you should take your major step diligently otherwise you will be unable to obtain the high returns.

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 INTRODUCTION

Mutual Funds have become a widely popular and effective way for investors to participate in
financial markets in an easy, low-cost fashion, while muting risk characteristics by spreading the investment
across different types of securities, also known as diversification. It can play a central role in an individual's
investment strategy. They offer the potential for capital growth and income through investment performance,
dividends and distributions under the guidance of a portfolio manager who makes investment decisions on
behalf of mutual fund unit holders. Over the past decade, mutual funds have increasingly become the
investor’s vehicle of choice for long-term investment. It becomes pertinent to study the performance of the
mutual fund. The relation between risk-return determines the performance of a mutual fund scheme. As risk
is commensurate with return, therefore, providing maximum return on the investment made within the
acceptable associated risk level helps in segregating the better performers from the laggards. Many asset
management companies are working in India, so it is necessary to study the performance of it which may be
useful for the investors to select the right mutual fund.

Mutual fund is a trust that pools the savings of number of investors who share a common financial
goal. A mutual fund is the most suitable investment for the cautious investors as it offers an opportunity to
invest in diversified professionally managed basket of securities at a relatively low cost. Investing in mutual
funds is an expert’s job in the present market scenario. A systematic investment in this instrument is bound
to give rich dividends in the long-term. That is why over 2 crore investors have faith in mutual fund. In order
to deal with mutual fund one should be AMFI certified.

Returns are the gains or losses from a security in a particular period and are usually quoted as a
percentage. What kind of returns can investors expect from the capital markets? A number of factors
influence return. Return is the motivating force and the principal reward in the investment process and it is

8
the key method available to investor in computing alternative investments. Investors wants to maximize
expected returns subject to their risk. Return of investment consist of two components.
Current return: is measured as the periodic income in relation to the beginning price to investment that is
dividend or interest
Capital return: It is simply the price appreciation or depreciation dividend by the beginning price of the asset.
for assets like equity stocks, the capital return predeterminations.
Risk: In the investing world, the dictionary definition of risk is the chance that an investment's actual
return will be different than expected. Risk means you have the possibility of losing some, or even all, of
your original investment. Low levels of uncertainty (low risk) are associated with low potential returns. High
levels of uncertainty (high risk) are associated with high potential returns. The risk and return trade-off is the
balance between the desire for the lowest possible risk and the highest possible return. Investment risks can
be divided into two categories: systematic risk and unsystematic risk.

Relevance of the Industry:-

Mutual funds are investment instruments that pool investor money and invest it in various stocks of
companies to create a diversified portfolio. They provide investors with different levels of risk and return
based on their objectives, risk tolerance, and time horizon, making the risk-return trade-off a vital factor.
Here is the importance of the risk-return trade-off in mutual funds.

● Risk management: The trade-off provides a framework to investors for assessing potential risks and
rewards for different investment opportunities.

● Return optimisation: Investors can identify investments that offer the best potential return for their
level of risk tolerance. This allows them to optimise their portfolio for investment objectives, such as capital
preservation, growth, or income.

● Diversification: The risk-return trade-off formula explains the current risk exposure in the investment
instruments included in the portfolio. This can allow investors to manage their portfolios and reduce risk by
investing in low-risk investment instruments.

Analysis and Finding:-

Risk and return in financial management is the risk associated with a certain investment and its returns.
High-risk investments yield better financial returns, and low-risk investments yield lower returns. That is,
the risk of a particular investment is directly related to the returns earned from it.

9
We will measure risk by using the standard deviation of returns. Standard deviation, for our purposes, is a
measure of the variability of returns. If stock A has a return one year of 20% and a loss of 10% the next, it
has a greater standard deviation than stock B with a return of 5% one year and a loss of 2% the next. Stock A
has more variable returns, so it is riskier and has a higher standard deviation.

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 OBJECTIVES OF THE STUDY

The objective of the project was to do Market Research on “Risk, Return and Comparative study of
Mutual Fund” for NJ India Invest Pvt Ltd. The main purpose of doing this project was to know about
mutual fund and its functioning. This helps to know in details about mutual fund industry right from its
inception stage, growth and future prospects. It also helps in understanding different schemes of mutual
funds. Because my study depends upon prominent funds in India and their schemes like equity, income,
balance as well as the returns associated with those schemes. The project study was done to ascertain the
asset allocation, entry load, exit load, associated with the mutual funds. Ultimately this would help in
understanding the benefits of mutual funds to investors.
1. To give a brief idea about the benefits available from Mutual Fund investment.
2. To evaluate and compare the performance of equity diversified mutual fund schemes of selected
companies.
3. To compare the performance of equity diversified mutual fund schemes of selected company’s vis-à-vis
the market.
4. To discuss about the market trends of Mutual Fund investment.
5. To study some mutual fund companies and their funds. Observe the fund management process of mutual
funds. Explore recent developments in the mutual funds in India.

SCOPE OF THE STUDY

1. The study covers all the information related to the Risk and Return analysis mutual fund

2. It also covers the investors risk in the investment in various mutual funds

3. To reduce the future risk in advance

4. To earn maximum profit in the mutual funds

5. Review and monitoring the performance of mutual fund.

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 COMPANY PROFILE

Name of the Company:-

NJ INDIA INVEST PVT LTD
Established Year:-
1994
Promoters:-
Mr. Neeraj Choksi & Mr. Jignesh Desai
Logo:-

Head Office:-
Udhna, Surat
Product Basket:-
1. Domestic Mutual Funds
2. Capital Markets-Direct Equity and ETFs
3. Fixed Deposits of Companies
4. PMS products
5. Government/ RBI/ Infrastructure Bonds
6. Residential & Commercial Properties

Form of Organization:-

Private Ltd

Branch Address:-
Jogi Basant building, Office no- JB1,1st Floor, Plot No- 1141, Madhusudan Nagar, Unit-4, Bhubaneswar,
Odisha-751001
Website:- www.njwealth.in, Email- njwealth@njgroup.in

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13
 HISTORY OF COMPANY

Mr. Neeraj Choksi (L) & Mr. Jignesh Desai (R) are two first generation entrepreneurs who began the
journey of ‘NJ’ in1994. The promoters of the NJ Group were friends since their college years and the bond
between Mr. Neeraj & Mr. Jignesh has been instrumental in the success of NJ. Discussing important things
before taking any decision is a habit that they have followed ever since they shared their hostel room in
Vidyanagar, where Mr. Neeraj was studying his management courses and Mr. Jignesh was into engineering.
They both have a complementary style of functioning that goes perfectly well for the business.

Driven by their passion for the financial well-being of customers & the mission for transforming
lives, the promoters have successfully put NJ at the forefront of innovation & growth. With a humble
beginning from home, the promoters have successfully shaped the group’s forays into many diversified
businesses. Both believed that ‘Trust’ has played a very important role in NJ’s journey, and in every step that
they have taken. The words of promoters aptly describe this journey of NJ – ‘Built on Trust.’

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 COMPANY OVERVIEW
INTRODUCTION:
Nj India Invest Financial Products Distributors Network, one of India's leading and most successful
networks of distributors in the financial services industry.

Started in 2003, NJ India Invest seeks to reach out to the common man and extend the opportunity to create
wealth through an empowered network of financial products distributors – the NJ Wealth Partners. To its
Partners, NJ Wealth provides a full service, comprehensive business platform with end-to-end solutions
critical for success in financial products distribution practice. With its compelling set of offerings covering
every area of distribution practice, NJ Wealth has managed to successfully transform the lives of many small
and big distributors. To the common man, NJ Wealth offers a comprehensive wealth management platform
with a wide choice of financial and non-financial products. Backed by high levels of excellence in
operational and service standards, NJ Wealth offers customers of its Partners, with solutions that truly make
a difference.

Driven by the strong vision of 'Creating Wealth and Transforming Lives', NJ Wealth's constant endeavour is
to build on the ideas that are meaningful & effective in scaling business challenges, seizing available
opportunities and serving the interests of the customer.

The NJ Wealth family has grown steadily and today it has over 35,400+* NJ Wealth Partners, spread across
165+ branches in 19 states in India with over 26,90,488+ investors and over INR 1,51,613 Cr +* of mutual
fund assets under advice. Irrespective of the numbers though, it is trust in us which fuels the passion for
creating solutions with excellence that touch many lives, day after day.
At NJ we believe in …
 Having single window, multiple solutions that are integrated for simplicity and sapience.
 Making innovations, accessions, value-additions, a constant process
 Providing customers with solutions for tomorrow which will keep them above the curve, today.

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 VISION AND MISSION

Vision

 Creating Wealth Transforming Lives

 Total customer satisfaction
 Commitment to Excellence
 Determination to succeed with strict adherence to compliance
 Successful Wealth Creation of our customers
Mission

We work towards building trusted relationship with our stakeholders, for inclusive growth through
constant process of innovation; time bound implementation and execution of ideas and technological
development. We stretch our means and go overboard to make sure that our client’s aspiration, dreams and
expectations are met with, through high service standards.

Work Philosophy
Doing the 'right' thing is a virtue most desirable. The difference between success and failure is often,
not dictated by knowledge or expertise, but by its actual application and perseverance. When it comes to
value creation for customers, it is something that we strongly strive for in all our endeavours. We are
committed to provide our customers with continuous, long-term improvements and value-additions to meet
their expectations.

Driven by passion, we continue to evolve and make the right product accessions and service innovations in
our offerings. Over the years, our passion has seen us grow from strength to strength and expand rapidly,
setting new benchmarks in the process. But to us, what really matters the most is winning the trust of our
customers.

NJ Businesses

 Wealth Advisors Network

 Asset Management
 Real Estate
 Insurance Broking
 Global Wealth Advisory
 Information Technology
 Training & Development

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 Wealth Advisors Network

The NJ Wealth Advisors Network is among India's largest and most successful network of advisors in
the financial services industry. The NJ Wealth Advisory Platform is a comprehensive, 360° platform offering
end-to-end solutions, required for a successful wealth advisory practice.

Started in 2003, the network seeks to reach out to the common man and extend the opportunity to create
wealth through sound investment principles and strategies. The NJ Wealth Advisors Network today has over
15,000* Advisors, called as NJ Partners, spread across India catering to over 12* lakh investors and having
an AUA close to Rs.10,000* Crores. The platform offers Partners with a basket of wealth products in
addition to comprehensive solutions in all important areas of business, backed by cutting edge IT services.
The Wealth Advisory Platform has managed to successfully transform the lives of many wealth advisors by
providing them with one answer to all advisory practice related concerns.

NJ Wealth Advisors Network has is presence in over 100* locations in India. The key offerings of the NJ
Wealth Advisory Platform is briefly mentioned here.

Partner Services:-
 Dedicated Relationship Manager

 Marketing & Sales support

 Research support

 Training & Education support

 Dedicated Customer Care / Query management support

 Technological support, including online business / 'Partners Desk' with CRM, Financial Planning &
Employee Management modules

Customer Services:-

Online family "Wealth/ClientDesk" enabling single portfolio view of 'entire' wealth

portfolioTrading&Demat Account with online transacting & call-&-trade service in mutual fund.

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 Asset Management

NJ has ventured in asset management business with NJ Advisory Services Pvt. Ltd., a group company,
launching its discretionary PMS products.
At the heart of NJ Advisory Services is the idea to provide customers with solutions that give them the
freedom from active management of investments while having an assurance that we would be doing so in
the best possible manner. Our conviction, matched by our passion and expertise, is all about ensuring the
peace of mind of the investor. The PMS products currently offered are aimed at meeting investor's need
for successful long-term wealth creation by following strategies that control risk and optimise returns in a
mutual fund portfolio.

NJ Advisory Services leverages upon with its rich experience in portfolio management with in-depth
knowledge & expertise in mutual funds. The decisions on the mutual fund portfolio also combine results of
time-tested proprietary research models, extensive due-diligence of fund houses, interactions with fund
managers & internal risk controls. The defined processes and smart use of technology further ensures that
the investors are offered with quality portfolio management and administrative services, ensuring a complete
peace of mind.

Products:
 Freedom Portfolio 
Objective: To stay invested in equity mutual fund schemes at all times, deliver superior portfolio returns
by selecting better performing schemes and encashing on opportunities offered by markets.

 Dynamic Asset Allocation Portfolio

Objective: To give better risk adjusted returns by deciding right pr\oportion of Equity and Debt asset
classes from time to time, and selecting consistently better performing mutual fund schemes.

Key customer services:

 Online Client PMS Desk with daily update reports

 Reporting on monthly, quarterly & annual basis through email and hard copies.

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 Real Estate
The NJ Realty venture offers an integrated service model offering end-to-end services to various
stake-holders in realty program management & execution. The idea is to associate with stakeholders and
engage actively in various stages of program management, viz. market survey, legal due diligence, land
acquisition, planning & execution of projects and managing sales & distribution through NJ Wealth Advisors
Network.

Managing realty programs is a lengthy process replete with many challenges right from program
identification to marketing. As a developer, investor or land owner, one may be keen to execute realty
projects, but may not be equipped with the right skill-sets, contacts, experience and/or know-how for the
undertaking. This is where NJ Realty can associate and help in shaping up the realty programs. NJ Realty
has acquired considerable experience in program management and is also currently engaged in multiple
programs playing diverse roles.

At the heart of NJ Realty is the philosophy of sustainability and preservation of environment. Going beyond
words, NJ Realty seeks to keep environment as one of the focal points in it's real estate business.

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 Insurance Broking

NJ Insurance Brokers Pvt. Ltd., a licensed insurance broker by IRDA, seeks to provide customers with
comprehensive solutions catering to their insurance needs.
At the heart of NJ Insurance is the strong vision for continued financial well-being for customers -
individuals and families, regardless of any circumstances. The key is to offer 'right' advice which is unbiased
and customer centric and encompasses the right risk to insure, the right coverage, the right product and at the
right time. The idea to offer clients with comprehensive solutions extends further to cover quality claim
settlement and other services.

NJ Insurance leverages from the rich experience of NJ group in financial planning and investment
management for customers. NJ Insurance Brokers has appointed Certified Insurance Advisors (CIAs) who
work with customers in identifying, fulfilling & managing their insurance needs. NJ offers a comprehensive
basket of products both in life & non-life insurance space and makes exhaustive use of technology to deliver
great value to customers.

Product basket:
.Life insurance products from leading life insurers

.General insurance products, especially Health, Motor & Personal Accident, from leading general insurers

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 Global Wealth Advisory
NJ Global Invest (Ltd.) is a new venture wherein NJ seeks to offer a Global Wealth Advisory

platform to advisors for offshore funds across the globe.

The vision at Global Wealth Advisory platform is to offer a single window for investment opportunities
across the globe to customers. The idea is to bring to customers a wide range of offshore fund schemes
(domiciled in Mauritius, Dublin and other jurisdictions), through advisors on the Global Wealth Advisory
platform. NJ Global Invest seeks to provide a offshore fund distribution platform & offshore Portfolio
Advisory services under a B2B distribution model. NJ Global Invest also desires to offer comprehensive
order routing and trade settlement facility with support services of client reporting. NJ Global Invest, is a
venture that leverages from rich experience & success of financial products advisory & distribution business
in India. Incorporated in Mauritius, NJ Global Invest is set up an offshore fund distribution company and is
a licensed 'Investment Dealer (Full-Service Dealer, excluding underwriting)" by FSC, Mauritius.

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 Information Technology

NJ Technologies, is a latest venture by NJ wherein we aim to provide quality technology solutions to

businesses in a wide range of domains.
NJ started its journey in technology with the start of Fin logic Technologies (India) Pvt. Ltd., a group
company, in year 2000. The idea then was to develop software applications to support the growing (financial
services) distribution business and manage the IT infrastructure. Over the years, the captive IT team, gained
strong domain expertise and skills in diverse areas and technology domains. Today, Fin logic team boasts of
over 250* employees with skills & rich experience in product development, software testing, infrastructure
management, R&D, project management & information security. The entire NJ Group's internal systems and
infrastructure is managed by Fin logic which also has developed many state-of-the art, proprietary
applications that power NJ's businesses.

NJ Technologies now seeks to leverage these in-house skills & expertise to help other businesses find
solutions for their business challenges. At NJ Technologies, we are keen to adopt the latest and the best
practices from the industry in delivering solutions that really work for businesses.

Solutions for businesses:

 Infrastructure Set-up and Management
 Database Management
 Customised Application Development
 Software Quality Assurance
 Information Security

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 Training & Development

The NJ Gurukul is a venture aimed at providing valuable training & education support to the young,
emerging talent pool in India. Started in year 2007, NJ Gurukul today offers a very wide range of training
programs across India in all major cities.
NJ Gurukul is about a vision that aspires to nurture the young talent in India and to transform them into
individuals with knowledge & skills for employment and enterprise. With special focus on the financial
advisor’s community, NJ Gurukul today, is a leading provider of training programs in the financial services
industry. NJ Gurukul offers a wide range of training programs by way of part / full time classroom sessions
being conducted at multiple locations across India. NJ Gurukul has an institutionalised, process driven
approach to training with focus on delivering uniformity in quality & content.

The NJ Gurukul has a Board of Trainers with over 35* well qualified, professional trainers empanelled
across India for delivering training programs. Within a short time, NJ Gurukul has trained over 30,000* in
over 50 locations across India. NJ Gurukul is an authorised Education Provider with FPSB India to deliver
training for the prestigious Certified Financial Planner Certification. NJ Gurukul is also amongst the largest
trainers of Mutual Fund Distributors in India.

Key Training Programs:

 Mutual Fund Distributors Certification by NISM for prospective NJ Wealth Advisors

 Certified Financial Planner (CFPCM) Certification by FPSB India

 Certified Personal Financial Advisor (CPFA) Certification by NISM

Products:
English4all – a distance learning / home kit for English language

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 NJ Fundz 360 Degree Support
The NJ Wealth Advisors Network is among India's largest and most successful network of advisors in
the financial services industry. The NJ Wealth Advisory Platform is a comprehensive, 360° platform offering
end-to-end solutions, required for a successful wealth advisory practice.

Technology Support
Information Technology has made our life easier and faster. At NJ, through our technological
platform we try to increase our deliverables for our business partners. State of the art technological solutions
provide an ideal integration of human element of advisory and ease of transactional processing. Through our
technological platform, you get multiple types of reporting module for your client’s investment that is
currently unmatched in the industry. You not only get valuation reports of your clients' investments which
gives you complete picture about your client’s current status as far as his investment is concerned.

Sales Support
Every NJ Fundz Network partner is provided with a Relationship Manager who remains in touch
with him on a regular basis to provide all necessary information and support. Your requirements in terms of
sales material, application forms etc would be taken care of by our sales team. Apart from regular sales
support on a daily basis NJ does:

 Regular sales meet for your clients

 Regular partner meets by inviting an industry expert to gain market insight.

 Doing joint calls for you whenever required.

 Doing sales planning and setting up sales process for your sales staff. 

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 Marketing Support
Marketing your services and products is another important aspect of growing your business. Building
your brand in the market is very important in today's competitive world. NJ understands this need and
provide marketing support through NJ Printshop. NJ Printshop provides multiple branding material which
you can order through your partner desk. Few of the marketing material available are:

 Your branded flyers, one pager about a product.

 Marketing material during a New Fund Offering

 Client centric letters, e mailers and mass SMS for your investors.

 Effective and impressive financial tools and calculators.

 Branded presentations for your clients. 

Customer Care & Back Office Support

Solving all your clients' investment related queries is just a phone call away as our customer care
executives remain available to answer and solve your queries. NJ platform also provides you facility to
submit your queries online at your partner desk platform and you can keep track of status of your query.

Customer care department strives to maintain high delivery standards by solving all queries in definite
turnaround time and to provide complete transparency and information to customers/partners regarding their
queries.

This will allow you to concentrate your efforts on business building exercise as you know all your queries
will be solved through NJ Customer Care.

Training Support
Developing soft skills in financial advisory industry is not optional but necessity as client
relationship is at the core of business. At NJ we truly believe in this fact and try to provide all necessary
training support.Continuous enhancement and up gradation of one's skills & knowledge are the needs of the
hour. Through NJ Gurukul we conduct training sessions for our partners and their employees to impart
technical skills and sales techniques. These training programs can also be tailor made and customized.

Research Support
Mutual Fund Advisory is the core competency of NJ India Invest. We believe in providing unbiased
advisory service based on single most important principle of asset allocation. Our competent research team
adds significant value to our advisory by providing regular product, schemes and market updates. Our
research team, on a regular basis does detailed analysis and study of different mutual funds schemes
available in the market and come out with list of recommended schemes. This 'Ready Reckoner' of schemes
help our partners to pick and choose a particular scheme for their investors.

23
 LITERATURE REVIEW

 Gupta and khoon (2001) examined the relationship between the portfolio risk and the number of stocks
in a portfolio in the period of september 1988 to June 1997 to determine the optimum size of portfolio
of stocks. In the study a sample of 213 stocks traded on Kuala Lumpur Stock Exchange (KLSE) were
used. The results of the study revealed that the diversification benefits are available upto the 27
securities.

 Mohammed and Devi (2004) in their study concluded that the return is equal to T bill rate and also
investor return in indian stock market is less the rate of interest provided by the fixed deposits by the
nationalized banks

 Irala and Patil (2007) also studied the concept of portfolio size and diversification by using a monthly
data during the study period of January 1999 to January 2005. The study suggested that a very high
degree of diversification was possible in india and also concluded that a portfolio size of 10-15 stocks
was found to be appropriate as the reduction in risk was only marginal thereafter.

 Manjunatha et al.(2006) found that intercept is singificantly differing from risk free rate of return and
slope is not equal to the diffence between the market return and risk free rates of return this study was
based on intercept and slope test and on the basis of this found that CAPM did not hold in Indian
context. this study also showed an inverse relationship between the portfolio returns and their betas.

 Leon et al.(2007) studied the risk expected return trade off in several European stock indices and
reported significant positive relationship between risk and return in most of the indices.

 Balios (2008) analyzed the risk and return relationship for the trading session of Athens stock exchange
(ASE) it has found the negative intraday relationship between return and risk. This study concluded that
microstructure changes should take place in order to make information incorporated into easier and
faster.This study showed positive returns from the first and last quarter of the session.

 Dhankar and Kumar (2007-2008) provided a picture of risk and return scenario in the indian stock
market. kapusuzoglu (2008) in their study calculated alpha, beta and correlation coefficients and also
explained their effects and the study also explained stock index relationship on the basis of single factor.

24
 Celik et al. (2009) investigated the risk-return trade off by using S-L CAPM for the individual stocks
and portfolios consisting of manufacturing firms listed in the ISE (Istanbul Stock Exchange). The study
used monthly returns for manufacturing industry for the period from Janaury 2002 to June 2008 (78
monthly observations). The study found the linear relationship between risk and return whereas
parameter tests are not satisfactory to conclude that the model parameters are robust.

 Bello and Adedokun (2011) examined the risk-return characteristics of Nigerian quoted firms for the
period of 2000-2004 by using monthly data and the study revealed that little scope for diversification in
this market.

 Hasan et al. (2011) investigated the risk-return relationship by using the supporting structure of CAPM
in Dhaka stock exchange by using monthly stock returns of 80 non financial companies and the result of
study did not support the theory's basic hypothesis.

 Nalla bala kalyan The main objective of the study is to give investors basic ideas of investing into the
mutual funds and encourage them to invest in those areas where they can maximize the return on their
capital. the research provided an interesting insight into awareness about the mutual funds risk taking
abilities of investors and investment options preffered etc.

25
 RESEARCH METHODOLOGY

Research methodology can be said as the process of systematic gathering of data and information for the
purpose of advancement of knowledge in a particular subject. It maycontain both present as well as
historical information. It is otherwise known as primary and secondary data.
 Primary Data:
primary data is collected throw a detailed personal interaction with managers and help of other epartment of
the company
• Secondary data:
Secondary data is collected from company documents, Reports, Profiles, Books, websites and magazines etc.
 The internet sources
 Annual report of the company
 Material provided by the company
 Fund houses
 Fact sheets, Brochures
 Fact sheets of mutual fund companies
 Business line
 Moneycontrol.com
 Mutualfundindia.com
 Indiainfoline.com
 Finance magazines

.Type of Research:-

The researcher has conducted analytical research for comparative analytics of mutual funds,Risk and Return
for investors perception.

Sample Size:-

The research has the sample size of 360 respondents of the study area having an
investment in selected mutual fund companies.The data was collected from journals and money control.
The data is about five mutual funds schemes for each : Large Cap Funds , Mid Cap Funds and Small Cap
Funds. Performance analysis of mutual fund is carried out on the basis of Mutual Funds Schemes For 1 Year,
3 Year And 5 year duration.

26
Population:-

In India are investing in mutual fund out of Total population of 140 cr. According to AMFI website as on
28th Feb,2023 , there are a total 14.42 cr Mutual Accounts(folio) in india. Less than 4 cr Indians have
invested in Mutual Funds .Folio means unique registration number with each Mutual Fund Company .Single
investor can invest in multiple mutual fund companies and will have multiple folio numbers. We will get the
idea that Retail Investor is contributing 80% of total accounts 11.54 cr .Total Asset Under Management
(AUM) in MF is Rs. 40.69 Lakhs Crore as on 28th Feb,2023.

27
Research Design:-
Our Indian financial service is virtuously structured and regulated by authorities like RBI, SEBI under which
the capital markets, money markets, etc. operates. From independence our economy is experiencing a
tremendous growth both globally as well as nationally especially with regard to mutual funds. So, this study
focuses whether the mutual funds are giving ample returns with minimum risk to the investor among the
selected growth schemes. An investor can select any mutual funds scheme based on its own risk and return.
risk is the key factor considered in selection of mutual funds scheme that suit his objectives. this fund
provides highest return for given unit of risk taken .it is expected from the mutual funds to provide better
return than to the market. it is important to evaluate the performance models.Mutual Fund Industry is a most
potential area for safe investment compare to investing on stock market directly. However there will be a
risk factor as Asset Management Companies (AMC) are investing the pooled funds in capital market that is
on debt and equity investments. Unless thorough analysis of the mutual fund investments, investors will not
come forward to invest. In this regard various parameters such as risk, return and performance of mutual
fund etc. are required to considered to assess the overall performance of mutual fund.
Data Collection Techniques and method:-
The data source in this research is secondary data, derived from data published in statistics or other journals
and information available from various sources that have been published. Data obtained from the Indonesia
Stock Exchange, the OJK website, the website regarding the capital market, the website about mutual funds,
the BAPEPAM-LK website, the Bank Indonesia website,bareksa.com, OJK Mutual funds.
Technical Data Analysis:-

The level of return of Sharia and Conventional mutual funds

a. Determine the return on mutual funds

where :
Ri = Actual return from mutual funds i
NABt = Net Asset Value at time t
NABt-1 = Net Asset Value in the previous time
b. Determine the return of mutual fund expectations

28
where :
E(Ri) = Expected Return on mutual funds i
Ri = Actual Returns from mutual funds i
n = Number of periods during the transaction

a. Determine mutual fund variance

where :
Var(Ri) = Variance of return on investment
E(Ri) = Expected return of mutual funds I
Ri = Actual Return from mutual funds
n = Number of periods during the transaction

Determine the level of risk of Islamic and conventional mutual funds.

a. Determine the standard deviation of mutual funds

where :
σi = Standard deviation of investment
Var(Ri) = Variant of Return on Investment

b. Determine Covarian Mutual Funds

where :

29
COV (Ri, Rm) = Covariance market with mutual fund investment
Ri = Mutual Fund Investment Returns
Rm = Return Market
E(Ri) = Mutual Fund Investment Expected Returns
E(Rm) = Market Expected Returns
n = Number of Analysis Periods
c. Determine the level of mutual fund portfolio fluctuation risk relative to Market Risk
(Beta) which is a Systematic risk / Market risk, namely :

where :
βi = Investment Mutual Fund Beta
COC (Ri, Rm) = Covariance Market with mutual fund investments
σ֋2= Market Variance
Determine Sharia and Conventional Mutual Fund Performance
d. Index Sharpe Method

where :
Si = Sharpe index value
E(Ri) = Mutual fund investment return
Rf = Risk free rate
σi = Mutual fund investment standard deviation

a. Index Treynor Method

where :
Ti = Treynor Index Value
E(Ri) = Mutual Fund Investment Expected Returns
Rf = Risk free rate
βi = Mutual Fund Investment Beta

30
b. Index Jensen Method

where :
E(Ri) = Expected Return on Mutual Fund Investment
E(Rm) = Market Expected Return
Rf = Risk free rate
Ri = Mutual Fund investment return
βi = Mutual Fund Investment Beta
αi = Jensen / alpha index value (Differential return)

Market Return Formula for conventional mutual funds

where :
Rm = Market Returns
IHSGt = Composite stock price index for the current month
IHSGt-1 = Composite Stock price index last month

Market Return Formula for Sharia mutual funds

where :
Rm = Market returns
ISSIt = Indonesia Sharia Stock Index now
ISSIt-1= Indonesia Sharia Stock Index last month

Market Expected Return Formula

31
where :
E(Rm) = Expected average market return
Ri = Market Returns
n = Number of periods during the transaction

1. Market variance :

where :

Var(Rm) = Variance of the market

E(Rm) = Average market returns
Rm = Marker returns
N = Period Amount during Transactio n

2. Market deviation standard :

where :
σm = Market deviation standard
Var(Rm) = Market Variance

32
 TOP TEN MUTUAL FUND INDUSTRY IN INDIA IN 2023

1. SBI Liquid Fund

AUM-63,462
CAGR-6.96
EXPENSE RATIO-0.18

2. SBI EQUITY HYBRID FUND

AUM-58,312
CAGR-15.46
EXPENSE RATIO-2.01

3. HDFC Liquid Fund

AUM-58,970cr
CAGR-6.49
EXPENSE RATIO-o.2

4. Balanced Advantage Fund

AUM-57,779cr
CAGR-18.06
EXPENSE RATIO-1.47

5. ICICI Pru Balanced Advance Fund

AUM-56.27
CAGR-5.71
EXPENSE RATIO-1.53

6. Kotak Flexicap Fund

AUM-39,236.78cr
CAGR-13.75
EXPENSE RATIO-1.53

7. Axis Bluechip Fund

AUM-33,987cr
33
CAGR-10.01
EXPENSE RATIO-1.56

8. Axis Long Term Equity Fund

AUM-32325
CAGR-14.99
EXPENSE RATIO-1.56

9. ICICI Pru Liquid Fund

AUM-43,873cr
CAGR-7.12
EXPENSE RATIO-0.29

10. SBI Bluechip Fund

AUM-36,876.32
CAGR-12
EXPENSE RATIO:-1.56

34
 DATA ANALYSIS AND INTERPRETATION

 ICICI Prudential Top 100 Fund Growth:-1

Interpretation:

In comparison to the relation of risk and return in the last 3 years and 5 years as compared to the last 1 year,
the return is more in comparison to risk. In the 3rdand 5th years the risk is increased in comparison to 1st
year and the return is going to be decreased. So it is found out that the short term investment in this fund is
more beneficial as the return decreased with the holding of the fund.

35
. Franklin India Blue chip Fund:-1.1

Interpretation:

While comparing the relation of risk and return in the last 3 years and 5 years as compared to the last 1 year,
there is high return compared to risk. In the 3rd and 5th years the risk is increased in comparison to 1st year
and the return is declining. So it is find out that The investment in this fund in the initial stage is beneficial
and if the fund holds for future prospects the return may be reduced.

36
.L&T Equity Fund Growth:-1.2

Interpretation:
It has been found that the volatility of the fund is reducing with holding of the fund and also the return is
reducing. The risk is higher in holding the fund.

37
. SBI Blue chip Fund Regular Growth:-1.3

Interpretation:
In comparison to the relation of risk and return in the last 3 years and 5 years as compared to the last 1 year,
the return is more in comparison to risk. In the 3rd and 5th year the risk is increased in comparison to 1st
year and the return is going to be decreased. Sharpe ratio shows good position during holding of funds.

38
. UTI EQUITY GROWTH FUND:-1.4

Interpretation:
In comparison to the relation of risk and return in the last 3 years and 5 years as compared to the last 1 year,
the return is more in comparison to risk. In the 3rd and 5th years the risk is increased in comparison to 1st
year. So it is found out that the investment in this fund in the short term is more beneficial if the fund holds
for long run the return may be reduced.

39
ICICI Prudential Mid Cap Fund:-1.5

Interpretation:
The volatility of the fund is found high in 3 year, while the risk is less in short term and return is also high.
The sharpe ratio is good if the fund holds for long term.

40
undaram Select Mid - Cap Fund:-1.6

Interpretation:
In comparison to the relation of risk and return in the last 1 year and 5 years as compared to the last 3 year,
the return is more in comparison to risk. In the 5th years the risk is increased in comparison to 1st and 3rd
year but the return is declining. So it is found out that the investment in this fund in the mid-term is more
beneficial.

41
Birla Sun Life MidCap Fund:-1.7

Interpretation:
In comparison to the relation of risk and return in the last 1 year and 3 years as compared to the last 5 year,
the return is more in comparison to risk. In the 1st and 5th years the risk is less
increased in comparison to 3 rd year but the return is going to be decreased.

42
L&T Mid Cap Fund:-1.8

Interpretation:

It is to be analyzed that the return is somehow more in comparison to risk in the 1st and 3rd years the risk is
comparatively increasing in 5th year and the return is going to be decreased. The sharpe ratio is also
improving with the holding of fund.

43
SBI Magnum Mid Cap Fund:-1.9

Interpretation:
It has been analyzed that the return is more in comparison to risk in the 1st and 3rd years the risk is little
changed in comparison to 5th year. Almost the risk is equivalent in all the years but the returns were
declining with the holding of the funds.

44
 FINDINGS

1. ICICI Prudential Top Large Capital Fund Growth : In the 3rd and 5th years the risk is increased in
comparison to 1st year and the return is going to be decreased. So it is found out that the investment in
this fund in the short term is more beneficial if the fund holds for long run the return may be reduced.
2. Franklin India Bluechip : In the 3rd and 5th years the risk is increased in comparison to 1st year and the
return is going to be reduced. So it is find out that The investment in this fund in the initial stage is
beneficial and if the fund holds for future prospects the return may be reduced.
3. L&T Equity fund growth : In the 1st and 5th years the risk is increased in comparison to 3rd years and
the return is going to be reduced. So it is found out that the investment in this fund in the mid-term is
beneficial and if the fund holds for a shorter period and longer period the return may be reduced.
4. SBI Blue-chip Fund Regular Growth : In the 3rd and 5th year the risk is increased in comparison to 1st
year and the return is going to be decreased. So it is found out that the investment in this fund in the
short term is more beneficial if the fund holds for long run the return may be reduced.

5. UTI Equity Fund Growth : In the 3rd and 5th years the risk is increased in comparison to 1st year and
the return is going to be decreased. So it is found out that the investment in this fund in the short term is
more beneficial if the fund holds for long run the return may be reduced.

6. ICICI Prudential Mid-cap fund : In the 1st and 5th years the risk is little increased in comparison to 3rd
year and the return is going to be decreased. So it is found out that the investment in this fund in the
mid-term is more beneficial if the fund holds for short-term and long-term the return may be reduced.
7. Sundaram Select Mid-cap fund : In the 1st and 5th years the risk is increased in comparison to 3rd year
and the return is going to be decreased. So it is found out that the investment in this fund in the mid-
term is more beneficial if the fund holds for short-term and long-term the return may be reduced.
8. Birla Sun life Mid-cap fund : In the 1st and 5th years the risk is little increased in comparison to 3 rd
year and the return is going to be decreased. So it is found out that the investment in this fund in the
mid-term is more beneficial if the fund holds for short-term and long-term the return may be reduced.
9. L & T Mid-cap fund : In the 1st and 3rd years the risk is little increased in comparison to 5th year and
the return is going to be decreased. So it is found out that the investment in this fund in the long-term is
more beneficial if the fund holds for short-term and mid-term the return may be reduced.
10. SBI magnum Mid-cap fund: In the 1st and 3rd years the risk is little changed in comparison to 5 th
year and the return is going to be increased. So it is found out that the investment in this fund in the
long-term is more beneficial if the fund holds for short-term and mid-term the return may be reduceD.

45
 LIMITATION
 We are not allowed to enter LIC offices
 Many people thought mutual fund investment is very expensive.

 The lack of information sources for the analysis part.

 Most of the people did not know anything about Mutual fund investment.
 Some Misconception about mutual fund in the market that they are very risky.
 Some of the advisors are even not aware of the mutual fund.
 Some of the advisors are even satisfied with their insurance business.
 Some of the advisors think mutual fund as equity, so they scared that their client will lose their money
by making investment in mutual fund.
 Some of the advisors are not even ready to listen about the business related to mutual fund.

 Time and money are critical factors limiting this study. 

 The study is limited only to the analysis of different schemes and its suitability to different investors and
according to their risk taking capacity to different investors.
 This study is based on a monthly fact sheet, a second data provided by the website and other books,
because the main reason is that data is not available.
 The study was limited by detailed studies of the five SBI MF. Many investors are price recipients.
 The study does not include the entry and exit loads of mutual funds.

46
 SUGGESTION
 The AMC (asset management company) should create an awareness among to the public about the
benefit of mutual fund investment.
 They can be arranging and conducting external programme at a public place to educate people and
create awareness.
 They should conduct survey to know the public opinion and question about investing in mutual fund
sector.
 Give better support to agent to work in mutual fund sector to serve their client.
 The advisors should be aware of the different ways of investments in mutual fund i.e., Lumpsum and
S.I.P.
 While making investment in mutual fund one should be aware that there always remains some risk and
it is always favourable for long term.
 Before investing in any mutual fund schemes the investors should analyse the track record of the
scheme and also they should know wether the mutual fund scheme performing well or not.
 Investor should know the risk and return profile of the mutual fund scheme wheather it is an aggressive
or conservative risk.
 Investors should consider their financial goals, risk and return before selecting the mutual fund scheme.
 It is advisable for the investors to invest more on L&T fund because it has higher return as compare to
other funds.
 And one more suggestion to investors that last preferences should be given to Aditya Birla Sunlife
Midcap Fund by considering last five years performance of the fund.
 It is better to investors to look for that mutual fund schemes, which gives high return with low risk at
a short period of time.

47
 REFRENCES
 Indian Financial System and Financial Market operations
 Financial Management by Ali & Mazumder
 AMFI work book provided by NJ India Invest Pvt Ltd.
 Selvam, Murugesan and Palanisamy, Bhuvaneswari, Analysis of Risk and Return Relationship of Indian
Equity (Dividend) Mutual Fund Schemes (2011).
 Desai Vasant, “Indian Financial System” Himalaya Publishing House, New Delhi.
 Business& Economy Magazine
 Fundz watch by NJ Group.
 Performance watch by NJ Group.
 Abdullah, M. &Parvez, K. (2012). Corporate Governance of Mutual Fund in Bangladesh.Research
Journal of Finance and Accounting, 3(6), 103-112
 Hsieh, Tebourbi, Wen-mim lu and Nai-ya liu (2020). Mutual fund performance: The decision quality
and capital magnet efficiencies. Department of international business administration; 10.1002.
 Oliveira, L., Salen, T., Curto, J. D., & Ferreira, N. (2019). Market timing and selectivity: an empirical
investigation of European mutual fund performance.Market timing and selectivity: an empirical
investigation of European mutual fund performance, (2)

48
 WEBSITE

 www.njgroup.com
 www.moneycontrol.com
 www.amfiindia.com
 www.valuesearch.com
 www.bseindia.com
 www.rbi.org.in
 www.IRDA.com
 www.prudentialchannel.com
 www.icraindia.com
 www.mutualfundindia.com

49
 ABBREVIATION

Mutual funds are one of the best investments ever made because they are cost effective and easy to invest in
all equity and debt schemes. Various external causes affect the fund performance. It is suggestible for the
investor to choose the right scheme according to their return and objective of the scheme and it is always
advisable to invest in equity schemes for a longer period of time. The results showed that in large cap funds
the investors get better return in the initial stage as compared to long term but the future prospects in the
large cap funds are not beneficial for the shorter period so the investors can hold funds for the long term i.e.
minimum 3 years. In mid cap funds the investors get better return in the mid-term period as compared to
short-term but the future prospects in the mid cap funds are not beneficial for the mid-term so the investors
can hold for the long term (5 years). In the small cap fund the investors get better returns in the mid-term
and long term but the risk is high and the future prospects in the small cap funds are beneficial in the long
term period. At last it has been found out that the unawareness of the investment factors of the Mutual Fund
in the different time perspective the investor can invest for the wrong
period and the opportunity to earn return cannot be achieved. This research is vital to help those investors
who want to invest in mutual funds rather than directly in instruments i.e. equity shares and debentures.

50
 conclusion

Mutual funds are one of the best investments ever made because they are cost effective
and easy to invest in all equity and debt schemes. Various external causes affect the fund
performance. It is suggestible for the investor to choose the right scheme according to
their return and objective of the scheme and it is always advisable to invest in equity
schemes for a longer period of time. The results showed that in large cap funds the
investors get better return in the initial stage as compared to long term but the future
prospects in the large cap funds are not beneficial for the shorter period so the investors
can hold funds for the long term i.e., minimum 3 years. In mid cap funds the investors get
better return in the mid-term period as compared to short-term but the future prospects in
the mid cap funds are not beneficial for the mid-term so the investors can hold for the
long term (5 years). In the small cap fund the investors get better returns in the mid-term
and long term but the risk is high and the future prospects in the small cap funds are
beneficial in the long-term period. At last, it has been found out that the unawareness of
the investment factors of the Mutual Fund in the different time perspective the investor
can invest for the wrong period and the opportunity to earn return cannot be achieved.
This research is vital to help those investors who want to invest in mutual funds rather
than directly in instruments i.e., equity shares and debentures

51
 ANNEXURE

1. AUM Asset Under Management

2. BOP Business Opportunity Presentation
3. MF Mutual Fund
4. NAV Net Asset Value
5. AMFI Association of Mutual Fund India
6. AMC Asset Management Company
7. SEBI Security Exchange Board of India
8. IRDAI Insurance Regulatory and Development Authority of
India.

52