INTERNSHIP PROJECT

ON

PERFORMANCE ANALYSIS OF MUTUAL FUNDS IN INDIA

Submitted in partial fulfillment of the requirement for the award of the

degree of BACHELOR'S OF BUSINESS ADMINISTRATION

Under the guidance of: Submitted by:

DR. GAGANDEEP CHADHA BIKASH KUMAR

ROLL NO.: 821022
SEMESTER V

NATIONAL POST GRADUATE COLLEGE, LUCKNOW

(An autonomous college of Lucknow University)
Accredited by NAAC-Grade
CPE and Kaushal Vikas Kendra
2
 DECLARATION

Title of the Project: Performance Analysis of Mutual Funds in India

I declare that the presented Project report represents largely my

ideas and work in my own words. Where other ideas or words have
been included, I have adequately cited and listed them in the
reference materials. The work has been prepared without resorting
to plagiarism. I have adhered to all principles of academic honesty
and integrity.

3
 ACKNOWLEDGMENT

I would first like to thank my Internship guide Mr. Rachit Vishakarma

(Department manager) of Sharekhan by BNP PARIBAS Ltd. on the topic
“Performance Analysis of Mutual funds in India”. The door to Mr. Rachit
Vishakarma (Department manager) was always open whenever I ran into a
trouble spot or a bad question about my research or writing. He consistently
allowed this paper to be my work but steered me in the right direction
whenever he thought I needed it.

I would also like to acknowledge Dr. Nidhi Srviastava (HOD of the DEPARTMENT
OF MANAGEMENT at the NATIONAL POST GRADUATE COLLEGE) and Dr.
Gagandeep Chadha (Mentor for the project) as the second reader of this thesis
and I am gratefully indebted to her for her valuable comments on the thesis. I
would also like to thank Prof. Devendra Kumar Singh principal at the NATIONAL
POST GRADUATE COLLEGE.

Finally, I would like to express my very profound gratitude to my neighbours

and friends for providing me with unfailing support and continuous
encouragement throughout my study and through the process of researching
and writing this thesis. This accomplishment would not have been possible
without them.

THANK YOU.

Date: Name: Bikash kumar

Place: Lucknow Roll No.: 821022

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 TABLE OF CONTENTS

TITLE

INTERNSHIP CERTIFICATE

DECLARATION BY STUDENT

ACKNOWLEDGEMENT

CHAPTER 1 INTRODUCTION………………………………………………….Pg 7-25

Introduction to mutual funds (pg 7-8)

History of mutual funds in India (pg 8-13)

Role of SEBI in mutual fund (pg 13-14)

Association mutual funds of India (pg 14-15)

Advantages and disadvantages (pg 16-19)

Types of mutual funds (pg 20-25)

CHAPTER 2 INDUSTER OVERVIEW………………………….………….…Pg 26-31

India mutual fund market size (pg 26)

India mutual fund market analysis (pg 27)

India mutual fund market trends (pg 28-29)

India mutual fund market leaders (pg 30-31)

India mutual fund market news (pg 31)

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CHAPTER 3 COMPANY PROFILE…………………………………………..Pg 32 - 39

History of Sharekhan (pg 32-33)

About company: Sharekhan ltd (pg 33-34)

Vision and Mission (pg 35)

Products and services (pg 36)

SWOT analysis (pg 37-38)

Sharekhan competitors with active users (pg 39)

CHAPTER 4 LITERATURE REVIEW…………………………………….…Pg 40 - 41

CHAPTER 5 RESEARCH METHODOLOGY……………………………...Pg 42 - 51

Research objectives (pg 42)

Research design (pg 42)

Sample design (pg 42)

Sample size (pg 42-43)

Data analysis (pg 43-51)

CHAPTER 6 FINDINGS, CONCLUSION AND

SUGGESTIONS……………………………………......................Pg 52 - 55

BIBLIOGRAPHY……………………………………...........................................Pg 56

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 CHAPTER -1
INTRODUCTION TO MUTUAL FUNDS
A mutual fund is a collective investment vehicle that collects & pools money
from a number of investors and invests the same in equities, bonds,
government securities, money market instruments. The money collected in
mutual fund scheme is invested by professional fund managers in stocks and
bonds etc. in line with a scheme’s investment objective. The income / gains
generated from this collective investment scheme are distributed
proportionately amongst the investors, after deducting applicable expenses
and levies, by calculating a scheme’s “Net Asset Value” or NAV. In return,
mutual fund charges a small fee.

In short, mutual fund is a collective pool of money contributed by several

investors and managed by a professional Fund Manager. Mutual Funds in India
are established in the form of a Trust under Indian Trust Act, 1882, in
accordance with SEBI (Mutual Funds) Regulations, 1996.The fees and expenses
charged by the mutual funds to manage a scheme are regulated and are subject
to the limits specified by SEBI.

Mutual funds are ideal for investors who –

 Lack the knowledge or skill / experience of investing in stock markets

directly.
 Want to grow their wealth, but do not have the inclination or time to
research the stock market.
 Wish to invest only small amounts.

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 Above cycle show the process of mutual fund

HISTORY OF MUTUAL FUNDS IN INDIA

A strong financial market with broad participation is essential for a developed
economy. With this broad objective India’s first mutual fund was establishment
in 1963, namely, Unit Trust of India (UTI), at the initiative of the Government of
India and Reserve Bank of India ‘with a view to encouraging saving and
investment and participation in the income, profits and gains accruing to the
Corporation from the acquisition, holding, management and disposal of
securities’.

In the last few years the MF Industry has grown significantly. The history of
Mutual Funds in India can be broadly divided into five distinct phases as follows:

8
FIRST PHASE - 1964-1987
The Mutual Fund industry in India started in 1963 with formation of UTI in 1963
by an Act of Parliament and functioned under the Regulatory and
administrative control of the Reserve Bank of India (RBI). In 1978, UTI was de-
linked from the RBI and the Industrial Development Bank of India (IDBI) took
over the regulatory and administrative control in place of RBI. Unit Scheme
1964 (US ’64) was the first scheme launched by UTI. At the end of 1988, UTI
had ₹ 6,700 crores of Assets Under Management (AUM).

SECOND PHASE - 1987-1993 - ENTRY OF PUBLIC SECTOR MUTUAL

FUNDS
The year 1987 marked the entry of public sector mutual funds set up by Public
Sector banks and Life Insurance Corporation of India (LIC) and General
Insurance Corporation of India (GIC). SBI Mutual Fund was the first ‘non-UTI’
mutual fund established in June 1987, followed by Canbank Mutual Fund (Dec.
1987), Punjab National Bank Mutual Fund (Aug. 1989), Indian Bank Mutual
Fund (Nov 1989), Bank of India (Jun 1990), Bank of Baroda Mutual Fund (Oct.
1992). LIC established its mutual fund in June 1989, while GIC had set up its
mutual fund in December 1990. At the end of 1993, the MF industry had assets
under management of ₹47,004 crores.

THIRD PHASE - 1993-2003 - ENTRY OF PRIVATE SECTOR MUTUAL

FUNDS
The Indian securities market gained greater importance with the establishment
of SEBI in April 1992 to protect the interests of the investors in securities
market and to promote the development of, and to regulate, the securities
market.

9
In the year 1993, the first set of SEBI Mutual Fund Regulations came into being
for all mutual funds, except UTI. The erstwhile Kothari Pioneer (now merged
with Franklin Templeton MF) was the first private sector MF registered in July
1993. With the entry of private sector funds in 1993, a new era began in the
Indian MF industry, giving the Indian investors a wider choice of MF products.
The initial SEBI MF Regulations were revised and replaced in 1996 with a
comprehensive set of regulations, viz., SEBI (Mutual Fund) Regulations, 1996
which is currently applicable.

The number of MFs increased over the years, with many foreign sponsors
setting up mutual funds in India. Also the MF industry witnessed several
mergers and acquisitions during this phase. As at the end of January 2003,
there were 33 MFs with total AUM of ₹1,21,805 crores, out of which UTI alone
had AUM of ₹44,541 crores.

FOURTH PHASE - SINCE FEBRUARY 2003 – APRIL 2014

In February 2003, following the repeal of the Unit Trust of India Act 1963, UTI
was bifurcated into two separate entities, viz., the Specified Undertaking of the
Unit Trust of India (SUUTI) and UTI Mutual Fund which functions under the SEBI
MF Regulations. With the bifurcation of the erstwhile UTI and several mergers
taking place among different private sector funds, the MF industry entered its
fourth phase of consolidation.

Following the global melt-down in the year 2009, securities markets all over the
world had tanked and so was the case in India. Most investors who had entered
the capital market during the peak, had lost money and their faith in MF
products was shaken greatly. The abolition of Entry Load by SEBI, coupled with
the after-effects of the global financial crisis, deepened the adverse impact on
the Indian MF Industry, which struggled to recover and remodel itself for over
two years, in an attempt to maintain its economic viability which is evident
from the sluggish growth in MF Industry AUM between 2010 to 2013.

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 (Growth of mutual funds in 4th phase)

FIFTH (CURRENT) PHASE – SINCE MAY 2014

Taking cognisance of the lack of penetration of MFs, especially in tier II and tier
III cities, and the need for greater alignment of the interest of various
stakeholders, SEBI introduced several progressive measures in September 2012
to "re-energize" the Indian Mutual Fund industry and increase MFs’ penetration.

In due course, the measures did succeed in reversing the negative trend that
had set in after the global melt-down and improved significantly after the new
Government was formed at the Center.

Since May 2014, the Industry has witnessed steady inflows and increase in the
AUM as well as the number of investor folios (accounts).

The Industry’s AUM crossed the milestone of ₹10 Trillion (₹10 Lakh Crore) for
the first time as on 31st May 2014 and in a short span of about three years the
AUM size had increased more than two folds and crossed ₹ 20 trillion (₹20 Lakh

11
Crore) for the first time in August 2017. The AUM size crossed ₹ 30 trillion (₹30
Lakh Crore) for the first time in November 2020.

The overall size of the Indian MF Industry has grown from ₹ 8.34 trillion as on
31st October 2013 to ₹ 46.72 trillion as on 31st October 2023, more than 5 fold
increase in a span of 10 years.

The MF Industry’s AUM has grown from ₹ 22.24 trillion as on October 31, 2018
to ₹46.72 trillion as on October 31, 2023, more than 2 fold increase in a span of
5 years.

The no. of investor folios has gone up from 7.90 crore folios as on 31-Oct-2018
to 15.96 crore as on 31-October-2023, more than 2 fold increase in a span of 5
years.

On an average 13.44 lakh new folios are added every month in the last 5 years
since October 2018.

The growth in the size of the industry has been possible due to the twin effects
of the regulatory measures taken by SEBI in re-energising the MF Industry in
September 2012 and the support from mutual fund distributors in expanding
the retail base.

MF Distributors have been providing the much needed last mile connect with
investors, particularly in smaller towns and this is not limited to just enabling
investors to invest in appropriate schemes, but also in helping investors stay on
course through bouts of market volatility and thus experience the benefit of
investing in mutual funds.

MF distributors have also had a major role in popularising Systematic

Investment Plans (SIP) over the years. In April 2016, the no. of SIP accounts has
crossed 1 crore mark and as on 31st October 2023 the total no. of SIP Accounts
are 7.30 crore.

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 (Growth of mutual funds after 5th phase)

Role of SEBI in Mutual fund

SEBI is the policymaker in charge of mutual funds and also governs the sector. It
establishes guidelines for mutual funds to protect investors’ interests. Mutual
funds have significantly different investment policies and asset allocation
techniques. It is necessary to have consistency in the functioning of mutual
funds, which can be identical in schemes. It will make it easier for shareholders
to make investment decisions.
To encourage standardization and uniformity in comparable schemes, the
Mutual Fund was listed as follows:

• Debt Schemes
• Solution-Oriented Schemes
• Hybrid Schemes
• Equity Schemes
• Other Schemes

With a few exceptions, categorizing and streamlining mutual funds into these
five primary categories means that mutual fund businesses may only have one
program in each subcategory. It simplifies the fund selection process and works

13
in the best interests of investors by examining the risk choices they make
before investing in any scheme.

Association Mutual funds of India (AMFI)

The essential job of AMFI within the Mutual Fund is to protect the interests of
Indian enterprises and asset management firms. It also supports transparency
and accessibility of investments to attract more people. As a result, to make
mutual fund investments more accessible, the funds of institutions, trustees,
advisors, intermediaries, and other interested persons should be registered on
the AMFI website. There are presently 44 registered members, including 42
asset management firms that are SEBI-registered. To promote transparency in
the mutual fund business, AMFI advertising frequently warns investors of their
hazards. Through a gift from participating AMCs, AMFI has launched MF utilities,
a Mutual Fund Investment Platform. This MF utility platform is free for
investors and brings together various mutual funds to make investing simple.
Mutual funds are popular around the world due to the variety of investment
opportunities they provide. There’s much to be said for profile and preference.

Investments
An investment is the present engagement of assets around an amount of time.
The excitement of obtaining future assets could accommodate the shareholder
for either the period the assets are perpetrated, the actual inflation rate, or the
likelihood (uncertainty of future payments). People have invested because of
the urge to withdraw money from those in the present to the long term.
Institution’s shareholders estimate potential cash requirements and expect that
their profits cannot satisfy specific future needs. Another intention is the
willingness to stimulate economic growth, enabling wealth creation, as the
return on investment is not assured.

Classification of investment
Investments by persons are produced with those who intend to develop capital
growth, tax deduction, or both. There will be numerous resources that give
shareholders a confluence of investment returns and earnings. There is still a
broad range of commodity choices available to investment firms to meet their
expectations. All assets required for personal investment are usually classified
into two types:

14
Financial Assets
Significant opportunities for individual people are accessible throughout this
grade of resources. Investment funds are implicit allegations for financial assets.
They are unquantifiable and available in different forms such as securities,
stocks, investment funds, exchanged funds, property investment gets to know,
or various equity and debt in different ratios. Unintended assertions on
valuable metals such as silver and gold are categorized as investments.
Financial assets premised on their features and traits are widely labeled into:

• Debt
• Equity
• Hybrid instruments

Trend in India
India has emerged as one of the world’s significant economies, having
enormous potential for long-term growth. The Indian economy is developing
faster and is brimming with investment opportunities. According to Mckinsey,
the income of the average Indian will grow by 2025. In the years ahead, this
would result in further spending.

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ADVANTAGES OF INVESTING IN MUTUAL FUNDS
1. Professional Management — Investors may not have the time or the
required knowledge and resources to conduct their research and purchase
individual stocks or bonds. A mutual fund is managed by full-time, professional
money managers who have the expertise, experience and resources to actively
buy, sell, and monitor investments. A fund manager continuously monitors
investments and rebalances the portfolio accordingly to meet the scheme’s
objectives. Portfolio management by professional fund managers is one of the
most important advantages of a mutual fund.

2. Risk Diversification — Buying shares in a mutual fund is an easy way to

diversify your investments across many securities and asset categories such as
equity, debt and gold, which helps in spreading the risk - so you won't have all
your eggs in one basket. This proves to be beneficial when an underlying
security of a given mutual fund scheme experiences market headwinds. With
diversification, the risk associated with one asset class is countered by the
others. Even if one investment in the portfolio decreases in value, other
investments may not be impacted and may even increase in value. In other
words, you don’t lose out on the entire value of your investment if a particular
component of your portfolio goes through a turbulent period. Thus, risk
diversification is one of the most prominent advantages of investing in mutual
funds.

3. Affordability & Convenience (Invest Small Amounts) — For many

investors, it could be more costly to directly purchase all of the individual
securities held by a single mutual fund. By contrast, the minimum initial
investments for most mutual funds are more affordable.

4. Liquidity — You can easily redeem (liquidate) units of open ended mutual
fund schemes to meet your financial needs on any business day (when the
stock markets and/or banks are open), so you have easy access to your money.
Upon redemption, the redemption amount is credited in your bank account
within one day to 3-4 days, depending upon the type of scheme e.g., in respect
16
of Liquid Funds and Overnight Funds, the redemption amount is paid out the
next business day. However, the units of close-ended mutual fund schemes can
be redeemed only on maturity. Likewise, units of ELSS have a 3-year lock-in
period and can be liquidated only thereafter.

6. Well-Regulated — Mutual Funds are regulated by the capital markets

regulator, Securities and Exchange Board of India (SEBI) under SEBI (Mutual
Funds) Regulations, 1996. SEBI has laid down stringent rules and regulations
keeping investor protection, transparency with appropriate risk mitigation
framework and fair valuation principles.

7. Tax Benefits —Investment in ELSS upto ₹1,50,000 qualifies for tax benefit
under section 80C of the Income Tax Act, 1961. Mutual Fund investments when
held for a longer term are tax efficient.

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DISADVANTAGES OF INVESTING IN MUTUAL FUNDS
1. Fluctuating returns: Mutual funds do not offer fixed guaranteed
returns in that you should always be prepared for any eventuality
including depreciation in the value of your mutual fund. In other words,
mutual funds entail a wide range of price fluctuations. Professional
management of a fund by a team of experts does not insulate you from
bad performance of your fund.

2. No Control: All types of mutual funds are managed by fund managers.

In many cases, the fund manager may be supported by a team of analysts.
Consequently, as an investor, you do not have any control over your
investment. All major decisions concerning your fund are taken by your
fund manager. However, you can examine some important parameters
such as disclosure norms, corpus and overall investment strategy
followed by an Asset Management Company (AMC).

3. Diversification: Diversification is often cited as one of the main

advantages of a mutual fund. However, there is always the risk of over
diversification, which may increase the operating cost of a fund,
demands greater due diligence and dilutes the relative advantages of
diversification.

4. Fund Evaluation: Many investors may find it difficult to extensively

research and evaluate the value of different funds. A mutual fund's net
asset value (NAV) provides investors the value of a fund's portfolio.
However, investors have to study various parameters such as sharpe
ratio and standard deviation among others to ascertain how one fund
has fared compared to another which can be complicated to some extent.

5. Past performance: Ratings and advertisements issued by companies

are only an indicator of the past performance of a fund. It is important to

18
 note that robust past performance of a fund is not a guarantee of a
similar performance in the future. As an investor, you should analyse the
investment philosophy, transparency, ethics, compliance and overall
performance of a fund house across different phases in the market over
a period of time. Ratings can be taken as a reference point.

6. Costs: The value of a mutual fund may fluctuate depending on the

changing market conditions. Furthermore, there are fees and expenses
involved towards professional management of a mutual fund which is
not the case for buying stocks or securities directly in the market. There
is an entry load which has to be borne by an investor when buying a
mutual fund. Furthermore, some companies charge an exit cost as well
when an investor chooses to exit from a mutual fund.

7. CAGR: The performance of a mutual fund vis-a-vis the compounded

annualised growth rate (CAGR) neither provides investors adequate
information about the amount of risk facing a mutual fund nor the
process of investment involved. It is therefore, only one of the indicators
to gauge the performance of a fund but is far from being comprehensive.

8. Fund managers: According to experts, as an investor, you would do

well not to be carried away by the so-called 'star fund managers'. Even a
highly skilled manager can make a positive difference in the short-term
but cannot dramatically change the performance of a fund in the long-
term. Also, there is always the likelihood of a star fund manager joining
another company. It is, therefore, more prudent to examine the
processes which are followed by a fund house rather than the star appeal
of just one individual

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Types of Mutual Funds
Mutual Funds can be categorized on the basis of types of securities opted,
investment goals, risk factors, and so on.

1. On the Basis of Structure:

On the basis of the structure, mutual funds are divided into three categories,
namely:

A. Open-Ended Mutual Funds: Open-Ended Mutual Funds are the ones

that can be purchased and sold as per the need and convenience of the
investors. They are sold at the prevailing Net Asset Value (NAV) and are
considered highly liquid investments. The units of this fund are bought and sold
on a continuous basis so, the Net Asset Value (NAV) is calculated on the daily
basis, when the markets close. There is no limit to the amount of investment
and can be easily managed through Systematic Investment Plans (SIPs).

B. Close-ended Mutual Funds: Close-ended Mutual Funds can be bought

only till the New Fund Offer (NFO) is opened. Further, they come with a fixed
20
maturity date and can be redeemed only on the expiry of such date. This means
there is a restriction in the entry and exit of the investors in this type of fund
and hence, cannot be managed through Systematic Investment Plans (SIPs). In
order to compensate for the lack of liquidity, close-ended mutual funds trade
on the stock exchange.

C. Interval Funds: Interval Funds pop up to bridge the gap between Open-
Ended Mutual Funds and Close-Ended Mutual Funds. With the features of both
types of mutual funds, interval funds are offered to new investors only during
the New Fund Offer (NFO) period and then can be repurchased only by the
existing Mutual Fund House at regular intervals during the tenure of the fund
Interval Funds comes with a maturity date like a Close-Ended Mutual Funds.
However, investors can manage and adjust their holdings by selling them on
the Stock Exchange.

2. On the Basis of Asset Class:

Asset Class means grouping the securities having similar characteristics and are
falls under the same Laws and Regulations. Depending on the type of asset
class, Mutual Funds are divided into:

A. Equity Funds: Equity Funds invest in the equity shares of different

companies. The Mutual Fund Company pools the money of different investors
together and then invests them into the equity shares of the different
companies as per the investment goal of the investors. Equity Funds are
associated with high risk and the return depends on the performance of these
shares on the stock exchange.

B. Debt Funds: Debt Funds invest the money of the investors in fixed-income
securities like debentures, bonds, and treasury bills. These securities offer fix
interest and come with a maturity date. Debt funds are suitable for investors
willing to take a low risk and want to earn a regular income. Fixed Maturity
Plans (FMPs), Gilt Funds, Liquid Funds, Short-Term Plans, Long-Term Bonds, and

21
Monthly Income Plans are some of the fixed-income instruments in which debt
funds invest.

C. Money Market Funds: Money Market Funds invest in money market

instruments like bonds, T-bills, commercial paper (CP), and certificates of
deposits (CDs). Money Market Funds are short-term investments with a
maturity period of up to 1 year. These funds are the highly liquid and safest
form of investment that yields better returns with minimal risk.

D. Hybrid Funds: As the name suggests, Hybrid Funds are a combination of

equity and debt. It invests in a portfolio that consists of equity and debt
securities in a specific ratio. Generally, Hybrid funds invest in equities and debt
in a ratio of 40:60. The return and risk associated with each type are balanced
against each other.

3. On the Basis of Investment Objective:

Investors with different investment objectives can opt for any of the following
mutual fund types:

A. Growth Funds: Growth Funds invest in shares and growth sectors that
appear promising enough to yield high returns with capital appreciation
opportunities. However, everything has a bad side as well, so this fund is
associated with a high degree of risk factor making it suitable for people ready
to bear the risk.

B. Fixed-Income Funds: Fixed-Income Funds are a type of debt fund that

invest money of the investors in a portfolio consisting of debentures, bonds,
securities, and certificates of deposits that yields a fixed return. The fund
manager under this fund ensures capital protection along with offering regular
income at minimum risk.

C. Tax-Saving Funds: Tax-Saving Funds are the ones that help in wealth
maximization along with saving taxes. Such funds enjoy deduction under
section 80 of the Income Tax Act and are known as Equity Linked Saving
22
Scheme (ELSS). Tax-saving funds have gained popularity in recent years not just
because it offers tax-saving benefits, but also because it comes with a minimum
lock-in period of only 3 years.

D. Liquid Funds: Liquid Funds also belong to a category of debt funds and
invest in debt and money market instruments for a very short period of 91 days.
The main motive is to provide high liquidity with low risk and moderate return.
The maximum investment amount is up to ₹ 10,00,000 under this fund. The Net
Asset Value (NAV) for these funds is calculated for the whole year (365 days)
including the holidays and Sundays.

E. Pension Funds: Pension Funds is a long-term hybrid fund that offers a

regular return to investors after retirement. The equity component of the fund
yields a high return while the debt component balances the risk of investment.
Pension Funds are made to secure the after-retirement life and investors have
the option to withdraw the return in lum-sum or fixed proportion or in a
combination of both.

4. On the Basis of Specialty:

On the basis of a specific sector, SEBI has categorized the following Mutual
Funds as specialty funds:

A. Sector Funds: Sector Funds are designed to make investments in a

particular sector only like the Production sector, Banking, Automobiles, IT, and
pharma sector. Since these funds invest in specific and few securities, they are
associated with high risk and high return factors. Investors should keep track of
all the changing trends related to the sector to minimize the risk.

B. Index Mutual Funds: Index Mutual Funds are the types of mutual funds
that track the securities and their corresponding ratio in the market index and
make asset allocations accordingly. They are best for passive investors and
require low management. Index mutual funds opt for an investment portfolio
that is at least 95% similar to the index tracking result.

23
C. Funds of Funds: Funds of Funds also known as Multi-Manager Funds are
designed to avail the benefits of diversified investment by investing in a single
fund rather than investing in several. This means the Fund of funds invests in
other mutual funds and the return depends on the performance of the target
fund. Funds of Funds are considered safer as the portfolio is diversified and
adjusted regularly by the managers to balance the risk.

D. Commodity Mutual Funds: Commodity Mutual Funds invest in physical

commodities like gold, silver, oil, or agricultural products or invest in companies
involved in their production, exploration, or distribution, with an aim to track
the price movements of the underlying commodity. The return depends on the
performance of the commodity or the company dealing in the commodity. This
fund offers the benefits of diversified investment with a good return.

E. Inverse Funds: Inverse Funds Also known as Leveraged Funds is a sister of

an Index fund. The difference between the two is that Index Fund makes asset
allocations in accordance with the benchmark index, but inverse fund works in
the opposite direction ,i.e., it focuses on selling more securities when the value
falls just to buy them again at more low cost and to hold them till the price of
the security rises again.

5. On the Basis of Risk:

Risk is an integrated part of any type of investment, so the Mutual funds are
divided on the basis of the degree of risk involved:

A. Low-Risk Fund: A low-risk fund invests in a liquid fund or short-term fund

that is known for its low risk and moderate return. However, a low-risk fund
doesn’t claim No-Risk , there is always some risk involved. Low-risk funds do
not have any lock-in period and are highly liquid. This fund includes debt funds,
money market instruments, government Bonds, Ultra short-term investments,
and so on. This fund is suitable for people with a minimum risk-taking attitude.

24
B. Medium-Risk Fund: Medium-Risk Fund targets the hybrid portfolio that
consists of the combination of both equity and debt fund. The hybrid fund
yields high returns along with balancing the risk of investment. The lock-in
period of a moderate-risk fund is generally three to five years.

C. High-Risk Fund: High-Risk Fund earns more return as compared to any

other funds. However, the return on such funds is unpredictable and uncertain.
It is often disbelieved that High-risk funds mean equity funds, but debt funds
with a low rating are also considered high-risk funds.

25
 CHAPTER -2

INDUSTRY OVERVIEW
India Mutual Fund Market Size

 Average Assets Under Management (AAUM) of Indian Mutual Fund

Industry for the month of October 2023 stood at ₹ 47,80,422 crore.
 Assets Under Management (AUM) of Indian Mutual Fund Industry as on
October 31, 2023 stood at ₹ 46,71,688 crore.
 The AUM of the Indian MF Industry has grown from ₹8.34 trillion as on
October 31, 2013 to ₹46.72 trillion as on October 31, 2023 more than 5
fold increase in a span of 10 years.
 The MF Industry’s AUM has grown from ₹ 22.24 trillion as on October 31,
2018 to ₹46.72 trillion as on October 31, 2023, more than 2 fold
increase in a span of 5 years.
 The Industry’s AUM had crossed the milestone of ₹10 Trillion (₹10 Lakh
Crore) for the first time in May 2014 and in a short span of about three
years, the AUM size had increased more than two folds and crossed ₹ 20
trillion (₹20 Lakh Crore) for the first time in August 2017. The AUM size
crossed ₹ 30 trillion (₹30 Lakh Crore) for the first time in November 2020.
The Industry AUM stood at ₹46.72 Trillion (₹ 46.72 Lakh Crore) as on
October 31, 2023.
 The mutual fund industry has crossed a milestone of 10 crore folios
during the month of May 2021.
 The total number of accounts (or folios as per mutual fund parlance) as
on October 31, 2023 stood at 15.96 crore (159.6 million), while the
number of folios under Equity, Hybrid and Solution Oriented Schemes,
wherein the maximum investment is from retail segment stood at about
12.75 crore (127.5 million).

26
India Mutual Fund Market Analysis
 As a result of COVID-19-induced lockdowns, the mutual fund industry's
SIP collections fell by 4% to INR 96,000 crore in FY 2020-2021. This
resulted in income uncertainty. Many investors chose to halt their SIPs as
a result of the pandemic. From a peak of Rs 8,641 crore, the contribution
fell for 11 months in a row before breaking through to new highs.
 The average assets under management (AAUM) of the Indian Mutual
Fund Industry for February 2022 stood at INR 38,56,140 crore. The
industry’s AUM had crossed the milestone of INR 10 trillion (INR 10 lakh
crore) for the first time in May 2014. In around three years, the AUM
increased more than twofold, and in August 2017, it crossed INR 20
trillion (INR 20 lakh crore) for the first time. The AUM size crossed INR 30
trillion (INR 30 lakh crore) for the first time in November 2020. The
industry's AUM was INR 37.56 trillion (INR 37.56 lakh crore) as of
February 28, 2022.
 The rising digital penetration, smart cities, and increased data speeds
also facilitate the drift of asset shares toward smaller cities and towns.
The increased retail contribution through SIPs shows the level of digital
penetration in India.
 The total number of accounts (or folios, as per mutual fund parlance) as
of February 28, 2022, was 12.61 crore (126.1 million units).

27
 India Mutual Fund Market Trends
This section covers the major market trends shaping the India Mutual Fund
Market according to our research experts:

 Growth in Mutual Fund Assets

The strong performance of the equity markets and net inflows to equity
schemes led to an increase in the asset size of the mutual fund (MF) industry.
For the quarter ended December 31, 2021, the average assets under
management (AAUM) of the industry were worth INR 36.17 trillion, registering
a growth of nearly 30% over a year.

The value of the assets held by individual investors in mutual funds increased
from INR 17.18 lakh crore in February 2021 to INR 21.02 lakh crore in February
2022, an increase of 22.32%. The value of institutional assets increased from
INR 15.11 lakh crore in February 2021 to INR 17.54 lakh crore in February 2022,
recording an increase of 16.08%.

28
 Mutual Fund SIPs Register Significant Growth
Owing to the large number of new first-time investors entering the market and
the simplicity of registering SIPs through online fintech portals, the number of
SIPs and monthly collections has increased. However, the average ticket value
per SIP has decreased. In December 2021, the average SIP ticket size fell to INR
2,303 per SIP, down from INR 3,313 in December 2017. Monthly SIP receipts,
on the other hand, increased by 77% to INR 11,005 crore in December 2021,
compared to INR 6222 crore in December 2017.

According to distributors, the number of SIPs increased by 41% in the last year,
going from 3.47 crore running accounts to 4.91 crore accounts, as many new
investors entered the market.

29
 India Mutual Fund Market Leaders

S.No. AMC Assets Managed (as on 31-Mar-2023)

1. SBI Mutual Fund ₹ 700,990.72 crores

2. ICICI Prudential Mutual Fund ₹ 509,588.31 crores

3. HDFC Mutual Fund ₹ 437,876.34 crores

4. Nippon India Mutual Fund ₹287,827.85crores

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

30
India Mutual Fund Market News
 In 2022, HDFC Mutual Fund launched two new fund offers (NFOs): the
HDFC NIFTY 100 Index Fund and the HDFC NIFTY 100 Equal Weight Index
Fund. According to the fund house, the investments are geared at
investors seeking returns that are comparable to the NIFTY 100 Index and
NIFTY 100 Equal Weight Index, respectively. As of December 31, 2021,
Indian large caps accounted for 68% of the Indian-listed space in terms of
market capitalization.

 In 2021, ICICI Prudential Mutual Fund announced the launch of the ICICI
Prudential FMCG ETF. Subject to monitoring faults, the service promises
to produce returns that roughly match the returns provided by its
benchmark Nifty FMCG TRI Index in the same proportions. The fund will
be traded on both the BSE and the NSE.
31
 CHAPTER -3
COMPANY PROFILE
History
Share khan is one of the leading retail brokerage of SSKI Group (Swargiya shri
Kantilal Ishwarlal group) which is running successfully since 1922 in the country.
It is the retail broking arm of the Mumbai-based SSKI Group, which has over
eight decades of experience in the stock broking business. Share khan offers its
customers a wide range of equity related services including trade execution on
BSE, NSE, Derivatives, depository services, online trading, investment advice etc.

The firm’s online trading and investment site - www.sharekhan.com - was

launched on Feb 8, 2000. The site gives access to superior content and
transaction facility to retail customers across the country. Known for its jargon-
free, investor friendly language and high quality research, the site has a
registered base of over 2 lakh customers. The number of trading members
currently stands at over 5 lakh. While online trading currently accounts for just
over 2 per cent of the daily trading in stocks in India, Share khan alone accounts
for 27 per cent of the volumes traded online.

The content-rich and research oriented portal has stood out among its
contemporaries because of its steadfast dedication to offering customers best-
of-breed technology and superior market information. The objective has been
to let customers make informed decisions and to simplify the process of
investing in stocks.

On April 17, 2002 Share khan launched Speed Trade and Trade Tiger, are net-
based executable application that emulates the broker terminals along with
host of other information relevant to the Day Traders. This was for the first
time that a net-based trading station of this caliber was offered to the traders.

32
In the last six months Speed Trade has become a de facto standard for the Day
Trading community over the net.

About company: Sharekhan limited

Sharekhan was founded by Mumbai-based entrepreneur Shripal Morakhia in

2000. Sharekhan pioneered the Indian online retail brokerage industry and
leveraged on the first wave of digitization, when dematerialization (demat) of
securities came into effect and electronic trading was introduced in the stock
exchanges.

With a client base of over 29 lakhs, 130+ branches, and 4000+ business
partners, Sharekhan’s full-service model is ‘Designed for the serious’, on an
average, executes more than 4 lakh trades per day.

As of 2020, Sharekhan was the fifth largest full-service firm and the 8th largest
stock broker in India. What differentiates Sharekhan from discount brokers is
their in-house expert research team, RMs and branches which is designed to
help customers understand the required serious approach and leverage the
power of their experience and expertise. Sharekhan offers a comprehensive
range of trading and investment solutions, including equities, futures and
options, portfolio management services, research, mutual funds, and investor
education.

2017 - Acquisition by BNP Paribas

Sharekhan was acquired by BNP Paribas in 2017 , it was rebranded
as Sharekhan by BNP Paribas

33
.

34
VISION AND MISSION
Sharekhan practices customer centric approach to be leading broking Firm.

Vision:

 To be the top most company for providing investment advisory and

financial planning services in India.

 To be a leading investment intermediary for transaction through both

online and offline medium.

Mission:

To educate and empower the individual investor to make better investment

decisions through quality advice and superior service educate and empower.

 Research backed advice, which is easy to understand, retail specific, and

discipline.
 Total equity solutions for the entire investment process.
 Relationship management Superior service. Integrity Transparencies.
Professionalism. Information product, news, operations. Hassle free
trading. Enjoyable experience our goals are to accomplish top most
position in both online and offline medium of trade and also to remain a
customer centric organization.

35
PRODUCTS AND SERVICES

PRODUCTS
1. Portfolio Management Services (PMS)
2. F&O Solutions
3. Algo Solutions
4. Pattern Finder
5. Margin Funding

SERVICES
1. EQUITY TRADING
2. OPTIONS TRADING
3. FUTURES TRADING
4. COMMODITY TRADING
5. CURRENCY TRADING
6. MUTUAL FUNDS
7. IPO
8. FIXED DEPOSITS AND BONDS
9. NRI SERVICES

SPECIALISED SERVICES

1. SHAREKHAN CLASSIC
2. SHAREKHAN ONE
3. SUPER INVESTER
4. SUPER TRADER

36
SWOT ANALYSIS
SWOT analysis involves evaluating the Strengths, Weaknesses, Opportunities,
and Threats of a business.

Strengths:
 Established brand: Sharekhan has a well-known brand in the financial
services industry.
 Diverse product offerings: The company offers a range of financial products
and services, including equities, derivatives, mutual funds, and more.
 Technology infrastructure: A robust and efficient technological platform for
trading and investment.
 Strong customer base: Sharekhan may have a significant number of active
clients.

Weaknesses:
 Dependency on market conditions: The company's performance may be
highly dependent on the overall market conditions.
 Regulatory changes: Any changes in financial regulations can impact the
company's operations.
 Customer service issues: Potential weaknesses in customer service may
affect client satisfaction.

Opportunities:
 Growing market: The expanding financial market in India presents
opportunities for increased customer acquisition.
 Technological advancements: Embracing new technologies, such as artificial
intelligence or blockchain, can enhance services.

37
 Expansion of product/service offerings: Introduction of new financial
products or services can attract a broader customer base.
 Strategic partnerships: Collaborations with other financial institutions or
fintech companies can open up new opportunities.

Threats:
 Market competition: Intense competition from other brokerage firms and
financial institutions.
 Economic downturn: Economic instability can lead to reduced investment
activities and trading volumes.
 Regulatory risks: Changes in financial regulations can pose threats to the
company's operations.
 Cybersecurity threats: With the increasing reliance on technology, the risk
of cyberattacks is a constant concern.

38
SHAREKHAN COMPETITORS WITH ACTIVE CLIENTS

1. ICICI DIRECT 1,912,937

2. HDFC SECURITIES 1,004,103
3. KOTAK SECURITIES 999,463
4. MOTILAL SECURITIES 798,085
5. SBI SECURITIES 680,648
6. IIFL SECURITIES 423,474
7. AXIS DIRECT 325,917
8. GEOJIT 233,120
9. CHOICE BROKING 195,840

39
 CHAPTER -4
LITERATURE REVIEW

John G. McDonald (1974) examined performance of 123, mutual funds relating

it to the given objective of every fund. The results indicate a positive
relationship between objective and risk measures, i.e., risk increasing with the
target becoming more aggressive. Rate of return generally with aggressiveness
and needless to say, there is a positive relationship between return and risk.
The relationship between objective and risk-adjusted indicates that funds that
are more aggressive experienced better results, although only one-third of the
funds do better than the aggregate market.

Sapar Rao Narayan & Madava Ravindran(2003) analyzed the performance of

269 mutual fund schemes during a market using relative performance index,
risk-return analysis, Treynor's ratio, Sharp's ratio, Sharp's measure, Jensen's
measure, and Fama's. The results obtained expressed that the majority of the
mutual fund schemes within the sample extraordinarily performed the
investor's expectations by giving excessive return over expected return
supported premium for systematic risk and total risk .

Sathya Swaroop Debasish(2009) analyzed the overall performance of 23

mutual fund schemes offered by six private sector mutual funds and three
public sector mutual funds supported as risk-return relationship models
andhelped to measure it over the period of time of 13 years (April 1996 to
March 2009). The analysis has been made on the basis of mean, beta,
coefficient of determination, Sharpe ratio, Treynоr's ratio and Jensen Alpha.
The general analysis finalizes that Franklin Templeton and Unit Trust of India
are the best performers and Birla Sun Life, HDFC and LIC mutual funds showing
below-average performance when measured against the risk-return
relationship models .

40
Madhusudhan V. Jambodekar (1996) conducted a study to measure the
awareness of MFs among investors to identify the knowledge influencing the
buying decision and therefore the factors affecting the selection of a specific
fund. The study finds out that the Income Schemes and Open Ended Schemes
of mutual funds are more preferred than Growth Schemes and Close Ended
Schemes during the prevailing market conditions.

Garg (2011) analyzed the performance of top ten mutual funds that were
selected on the basis of previous years return. The study found the
performance on the basis of return, standard deviation, beta as well as Treynor,
Jensen and Sharpe indexes. The study also used Carhart’s four-factor model to
examine the performance of mutual funds. The results reveal that Reliance
Regular Saving Scheme Fund has achieved the best final score .

Deepak Agarwal (2011), He analyzed the price mechanism of Indian Mutual

Fund Industry, data related to the fund-manager as well as fund-investor levels.
In their study evaluated the performance of public-sector and private sector
mutual funds for the period of time from 2005 to 2007. Selected funds had
been analyzed by using some statistical tools like mean, standard deviation and
coefficient of variance. The performance of all the funds has shown volatility
during the time of study making it difficult to ear mark one particular
fund which could be extraordinary and perform the opposite consistently.

Selvam et. al. (2011) analyzed the risk- return relationship of Indian mutual
fund schemes. The study determined that out of thirty five sample mutual fund
schemes, eleven schemes show significant t values and all other twenty four
sample schemes don’t prove efficient relationship between the risk and return.
Consistent with t-alpha values, thirty two of the sample schemes returns aren’t
significantly different from their market returns and small numbers of sample
schemes returns are significantly different from their market returns during the
study period.

41
 Chapter -5
RESEARCH METHODOLOGY

RESEARCH OBJECTIVES:

• To analyse the performance of the selected mutual fund schemes on the basis
of their Large Cap, Mid cap and Small Cap funds.

• To understand the performance of mutual schemes in terms of both risk as

well as return.

• To examine the performance of selected schemes by using performance

evaluation models namely sharpe , Jension and treynor’s Model.

RESEARCH DESIGN:

The present study aims to analyze the performance evaluation of the mutual
fund schemes in India. The research design for this project is descriptive.

SAMPLE DESIGN:

In this study, Non Probability convenience Sampling design has been followed.

SAMPLE SIZE:

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.

42
• Large cap funds
1. ICICI Prudential Top 100 Fund Growth
2. SBI Blue-chip Fund Regular Growth
3. UTI Equity Fund Growth

• Mid cap funds

1. ICICI Prudential Mid-cap fund
2. Birla Sun life Mid-cap fund
3. SBI magnum Mid-cap fund

• Small cap funds

1. Edelweiss Small cap fund
2. Kotak Emerging Equity Scheme- Regular Plan
3. Mirae Asset Emerging Blue - chip Fund

DATA ANALYSIS
• LARGE CAP FUNDS
The investment in this type of funds is in large sized companies. Companies
having market capitalization ₹20,000 crores or above.

1. ICICI Prudential Top 100 Fund Growth

43
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.

2. SBI Blue-chip Fund Regular Growth

44
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.

3. UTI Equity Fund Growth

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.

45
• MID CAP FUNDS
The investment in this type of funds is in medium sized companies. Companies
having market capitalization above ₹ 5000 crores but less than ₹ 20,000 crores
are under the mid-cap companies. Mid-cap funds are very volatile and tend to
fall if the market falls in bad times.

1. ICICI Prudential Mid-cap fund

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.

46
 2. Birla Sun life Mid-cap fund

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.

3. SBI magnum Mid-cap fund

47
 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.

• SMALL CAP FUNDS

Companies having market capitalization up to ₹ 5000 crores come under the

categories of small-cap companies. Small-cap funds are more flexible than
Midcap & Large-cap Funds. Its risk-return matrix is very high.

1. Edelweiss Small cap fund

48
It is to be interpreted that the return is more in comparison to risk. In the 1st
and 5th years the risk is changed in comparison to 3rd years and the return is
going to be increased. So it is found out that the investment in this fund in the
midterm is more beneficial if the fund holds for short term and long term the
return may be reduced.

2. Kotak Emerging Equity Scheme- Regular Plan

49
It is analyzed that the return is more in comparison to risk in the 1st and 3rd
years the risk is increased in comparison to 5th years 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.

3. Mirae Asset Emerging Blue - chip Fund

50
It is found that the return is more in comparison to risk in the 3rd and 5th years
the risk is increased in comparison to 1st year and the return is going to be
increased. So it is found out that the investment in this fund in the Short term is
more beneficial if the fund holds for mid-term and long term the return may be
reduced.

51
 CHAPTER -6
FINDINGS, CONCLUSION AND
SUGGESTIONS
FINDINGS
LARGE CAP FUNDS:
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. 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.

3. 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.

MID CAP FUNDS

1. 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

52
 2. Birla Sun life 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.

3. SBI magnum Mid-cap fund: In the 1st and 3rd years the risk is little changed
in comparison to 5th 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.

SMALL CAP
1. Edelweiss Small cap fund: In the 1st and 5th years the risk is changed in
comparison to 3rd years and the return is going to be increased. So it is found
out that the investment in this fund in the midterm is more beneficial if the
fund holds for short term and long term the return may be reduced.

2. Mirae Asset Emerging Blue chip fund: In the 3rd and 5th years the risk is
increased in comparison to 1st year and the return is going to be increased. So
it is found out that the investment in this fund in the Short term is more
beneficial if the fund holds for mid-term and long term the return may be
reduced.

3. Kotak Emerging Equity Scheme- Regular Plan: In the 1st and 3rd years the
risk is increased in comparison to 5th years 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.

53
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.

54
SUGGESTIONS
The performance of the mutual funds depends on the previous years Net Asset
Value of the fund. All schemes are doing well. But the future is uncertain. So,
the Sharekhan ltd company should take the following steps:

1. The interface among the investors and the Mutual Fund Companies is the
agents, so the agents should have proper knowledge about Mutual Funds
as well as market so that they can help investors in their investment
decisions. The quality of agents performance and investors trust on them
can be improved only if they are permanent in nature.
2. Most of people aware of life insurance, NSC and PPF for tax saving so,
company should market various tax saving schemes of Mutual Funds and
their benefits.
3. Company should also provide knowledge about the growth rate and the
expected growth rate of Mutual Fund industry in India.
4. Most of advisors are not interested in dealing of Mutual Funds because
they don’t want to expand their services due to lack of time, so company
should provide them knowledge about single window services by which
investor can get all financial services from one place.
5. Investors have inadequate knowledge about Mutual Funds, So proper
Marketing of various schemes is required, company should arranges
more and more seminars on Mutual Funds.
6. Awareness of MF services provided by Sharekhan is also low so company
needs proper marketing of their all services by advertising, distribution of
pamphlet, arranging seminars etc
7. The company should concentrate on differentiating the portfolio of their
Mutual Funds than their competitors Mutual Funds.

55
 BIBLIOGRAPHY

FOR BOOKs:
R. Glenn Hubbard – The Mutual Fund Industry

Dr. Susanta Kumar Mishra – A Guide to Indian Mutual Fund Investment

FOR RESEARCH PAPERs:

Article in International Journal of Management Public Policy and
Research· (May 2022): Performance analysis of Mutual Funds in India.

FOR NEWSPAPERs:

Business Standard

The Times of India

FOR WEBSITEs:
https://www.amfiindia.com

https:// www.sharekhan.com

https://www.mordorintelligence.com/industry-reports/india-mutual-fund-
industry

https://www.researchgate.net

https://www.moneycontrol.com

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