A

REPORT
ON
DISSERTATION

PREPARED BY,
MR. MORE JAYESH ARUN (PMB21M1088)
MR. NARWADE ABHISHEK SUBHASH (PMB21M1093)
MR. P A C H P I N D J A Y E S H S A N J A Y (PMB21F1094)

FOR THE REQUIREMENT OF COURSE –

DISSERTATION

CONTINUOUS INTERNAL ASSESSMENT (CIA) - 1

UNDER THE GUIDANCE,

PROF. J. B. JAVHERI

SUBMITTED TO,

DEPARTMENT OF MBA
SANJIVANI COLLEGE OF ENGINEERING, KOPARGAON
 TITLE
“Comparative Analysis of Top 5 Equity Mutual Funds in India”.

Abstract:
The purpose of this research is to evaluate the performance of the mutual funds in India. In this research is to
assess the effectiveness and usefulness of mutual funds & find out the interest of shareholders.
Generally, when an investor decides to study an investment option readily available in today’s confusing,
complex and risky environment, he thoroughly evaluates all the investment options. While evaluating such
multiple options, he naturally considered several factors like past performance of the options under study,
risks adjusted returns from the invested plan, share in the portfolio policy, fund house, black returns i.e.,
percentage of interest/ dividends and consistent rate of returns on investment, to mention a few.
In the word of Warrant Buffett, “Risk comes from not knowing what you are doing”.
If at all, an investor decides to follow all these options for his investment, quite strictly, preferable he would
come to a rational conclusion of an option of mutual funds. However, when an investor decides to opt for
mutual funds, he proceeds with the assumptions that the performance of mutual funds is relatively good, the
return on mutual funds is better as compared to the returns on fixed deposits with bank or post offices. The
performance of mutual funds is good because of proper portfolio and risk management and it is linked and
dependent on stock market.

Introduction:
The Indian mutual fund industry has come a long way from its inception in 1964. There is lot of structural
transformation in the industry over the years. The competition is intense in the current scenario as there are a
variety of players in all types of fund schemes. A Mutual Fund is a trust that pools the savings of a number
of investors who share a common financial goal. The money thus collected is then invested in capital market
instruments such as shares, debentures and other securities.
Concept of Mutual Funds
Mutual Fund is essentially a mechanism of pooling together the savings of a large number of small investors
for collective investment, with an avowed objective of attractive yields and capital appreciation, holding the
safety and liquidity as prime parameters. A Mutual Fund is a trust that pools the savings of a number of
investors who share a common financial goal. The money thus collected is then invested in capital market
instruments such as shares, debentures and other securities. The income earned through these investments
and the capital appreciation realized is shared by its unit holders in proportion to the number of units owned
by them. Mutual funds are dynamic financial institutions (FIs) which play a crucial role in an economy by
mobilizing savings and investing them in the stock-market, thus establishing a direct link between savings
and the capital market. Therefore, the activities of mutual funds have both short-and long-term impact on the
savings pattern, growth of capital markets and the economy.
STATEMENT OF PROBLEM
Equity mutual funds are usually invested in companies generally to keep up with moderate risk against the
investment or an addition in diversified portfolio. Further, there is a need to compare the average returns and
performance of the selected top 5 equity funds and also to analyze the risk and returns risk of the schemes.
Therefore, the study is conducted to understand the comparative performance analysis of the top 5 equity
funds in the market over the period of 5 years. Mutual funds are among the most popular investment in the
market. Many people buy them because of their comparative returns. Few of them prefer mutual funds as
they are easy to buy or sell. However, other cite that mutual funds can spread risk. A high risk involved in
the mutual fund’s investment is the market risk. When the market is doldrums, most of the equity funds will
also experience a downturn.

OBJECTIVES OF THE STUDY

The research study was conducted with following objectives:
1. To compare average returns of selected top 5 equity mutual funds
2. To analyze that which of selected mutual funds provide better return at lower the risk.
3. To do comparative analysis of selected mutual fund schemes.
4. To study the relationship between the risk and return of Equity Shares and Mutual Fund.

Scope of the Study:

This Paper aims at studying difference between investing in shares and mutual funds. The scope of the study
of mutual funds and equities is very large but our study is limited to top 5 equity mutual funds.

REVIEW OF LITERATURE

1. (Dr.K.M. Sudha, 2020) Conducted research on “Comparative Study on Selected Mutual Fund”. The
objective of the study is to comparative performance analysis fir selected mutual funds for five years
and also risks and returns of mutual funds. This study evaluates the analysis of returns that takes place
for five years and their volatility based on investment. The sources of data are secondary data. The tools
used for analysis are simple average method and standard deviation method and simple comparative
analysis method and ranking method. The findings that is not advisable to invest equity fund category as
the market undergoing fluctuations asset components are subject to high risk.
2. (Shivam Tripathi, Dr. Gurudutta P. Japee, March 2020) Conducted research on “Performance
Evaluation of Selected Equity Mutual Funds in India”. The objective of the study to know whether
mutual funds give reward to changeability and unpredictability and also identify security market return
with fund return. The data are secondary data is gathered from different sources like factsheets of
different AMCs and historical NAV and yearly return. The statistical tools Jenson‟s alpha, beta,
standard deviation and Sharpe ratio. The performance analysis of the selected 15 equity funds and
 clearly identified that the 10 funds are performed well and 5 are not during the study. The findings of the
study the volatility in the market are changes in the performance of the various stocks.
3. (Anil Kumar Goyal, June 2018) Conducted research on “A comparative study of return of selected
mutual fund schemes with nifty50”. The objective of the study is to compare average long run mutual
fund of each selected company and also compare with the nifty50 with mutual fund. Research
methodology is based on secondary data of NAVs and nifty50 collected online for the period of one
year. The nifty50 price was collected from yahoo finance. Findings for this study is the selected schemes
is compared with the monthly average of long return of benchmark nifty50 and find that SBI is better in
terms of volatility and returns.
4. (Nadia, March,2018) Conducted research on “A Comparative Analysis of Mutual Fund Schemes”.
The objective is to analyze the risk and return of the selected fund schemes and compare the same with
BSE-Sensex and also compare the performance with the market index whether they are outperforming
or underperforming. The research methodology consists of primary and secondary data. The secondary
data collected from the various sources. The data are measuring through standard deviation, beta, alpha
and coefficient of determination. The result of this study is to find out the 14 schemes are outperformed
the benchmark returns.
5. (Rani, 2018) Conducted research on “Performance Analysis of Mutual Funds: A Study of Balanced
Schemes”. The purpose of the study is to examine the performance of selected public and private sector
mutual funds particularly for their balanced schemes during the study period. The data analysis is basics
quantitative results of selected schemes. This study provides the overall mutual fund industry of India
during a year of 2018.
6. (Dr M. Ravichandran, May 2017) Conducted research on “A study on performance evaluation
mutual fund schemes in India”. The objective of the research to identify the performance of open-
ended equity mutual fund schemes and measure the performance and analysis the risk and return of their
performance and also evaluate the future investment regarding open ended equity scheme. The
collection of data is on systematic basis for analysis. The data are collected from various sources from
the association of mutual fund India, BSE India etc. the tools and techniques for analysis is used in this
study is Sharpe ratio, Treynor ratio, Jensen ratio, beta and standard deviation. The finding of this study
is investigating the performance result useful for investors for taking better investment decisions.
7. (Renuka, 2017) Conducted research on “A Comparative Study on Performance of Mutual Funds
and Its Schemes in India.” The research objective is to study about mutual fund and also idea about
regulation of mutual funds in India. The methodology is used the performance of selected funds is
evaluated using average return, standard deviation, beta and R-Square. This study provides some
insights on mutual fund performance so as to assist the common investors in taking the rational
investment decisions for allocating their resources in correct mutual fund schemes.
8. (N. Bhagyasree, April,2016) Conducted research on “A Study on Performance of Mutual Funds in
India”. The research objective is that the mutual fund is performing safe for the investor. The tools and
 techniques are used in this research are Shape ratio, Treynor ratio, Jenson ratio, Beta, Standard
deviation. The result of this study is to find out the mutual funds were performing very safe for the
investors and also supervision to allow an investor to take the right decision.

RESEARCH METHODOLOGY
 Research problem
“A Study on Comparative Analysis of top 5 equity Mutual Fund”
In a comparative market there are multiple mutual funds working in the Indian market. It is necessary to
know mutual fund as the performance of the mutual fund decides the future of Mutual Fund Company.
In my study I have compared 5 AMC‟s with each other and in which AMC performance is better than
the other AMCs.
 Sample Design
The research is based on the descriptive type of research design used in this research project.
 Sources of Data
The sources of data comprise a secondary data. Secondary data was collected from various sources such
as:
1. Comparative Analysis
2. Case Studies
3. Expert Reviews
4. Data Analysis
5. Quantitative Data
 Data collection
Secondary data has been used for this research, collected from various research papers and Various
equity mutual funds websites. The study considers the period of 5 years.
 Tools and Techniques:
1. Rate of return
2. Risk
3. Standard Deviation is used to measure the risk of a stock.
4. Beta is calculated to know whether investment in the companies is risky or not
5. Alpha is used to measure the performance of all the funds. Alpha is a measure of an investment's
performance on a risk-adjusted basis.
6. Standard Deviation- The total risk is measured by the standard deviation of the monthly returns.
7. Sharpe technique - Sharpe devised an index of portfolio performance measure, referred to as reward
o variability ratio. the ratio of the fund portfolio’s average excess return divided by the standard
deviation of the return and giving the rank.
REFERENCES
1. Anil Kumar Goyal, T. M. (June 2018). A COMPARATIVE STUDY OF RETURNS OF
SELECTED MUTUAL FUNDS SCHEMES WITH NIFTY50. VSRD International Journal of
Business and Management Research.
2. Murthi, B. P. S., Choi, Y. K., & Desai, P. (1997). Efficiency of mutual funds and portfolio
performance measurement: A non-parametric approach. European Journal of Operational
Research, 98(2), 408-418.
3. Anuja Magdum, C. G. (March 2019). A Comparative study on Mutual Fund Schemes of Selected
AMC's in India. International Journal of Trend in Scientific Research and Devfelopment(IJTSRD).
4. Arthy B, A. A. (Aug. 2015). A Study on Factor Affecting Investment on Mutual Fund and Its
Preference of Retail Investors. International journal of scientific and research Publications.
5. Deepika Sharma, P. L. (May, 2011). Comparative Study of Selected Equity Diversified Mutual
Schemes. IJCSMS International Journal of Computer Science and Management Studies.
6. Dr M.Ravichandran, A. J. (May 2017). A Study on Performance Evaluation Mutual Fund Schemes
in India. International Journal of Advanced Education and Research.
7. Dr. Nidhi Sharma, H. A. (Feb, 2019). Performance Analysis of Mutual Funds: A Comparative
Study of the Selected Hybrid Mutual Fund Schemes in India.
8. Dr. Sarita Bhal, M. R. (July 2012). A Comparative Analysis of Mutual Fund Schemes in India.
International Journal of Marketing & Management Research.

WEBSITES
https://www.moneycontrol.com/
www.icicipruamc.com
https://www.hdfcfund.com/
https://mutualfund.adityabirlacapital.c
om/https://mf.nipponindiaim.com/
https://www.sbimf.com/
https://www.morningstar.com/
https://www.angelbroking.com/
vii