ACKNOWLEDGEMENT

I would like to express my sincere gratitude to all these

individuals for mentoring and supporting me in
completing this project. My teacher Dr .Pranay Moktan
for providing me with invaluable insights and direction.
Our esteemed HOD Sujoy Chakraborty for fostering an
environment of learning and creativity within our college
.To my parents, their constant encouragement, patience,
and understanding have been the pillars of my success. I
am grateful to my friends who contributed ideas and
perspectives that enriched the project. Thank you
everyone for shaping this project and enhancing my
learning experience.

.................... ....................
Dr. Pranay muktan Sujay Chakraborty
(HEAD OF THE DEPARTMENT.)
 INDEX

ACKNOWLEDGEMENT ...........................
CHAPTER 1. ...........................
1.1 INTRODUCTION
........................... 1
........................... 1
1.1.2 RATIONALE OF THE STUDY
1.1.3 INTRODUCTION TO THE INDUSTRY
........................... 1-3

1.1.4 BENEFITS OF MUTUAL FUNDS

........................... 4

1.1.5 JUSTIFICATION
........................... 5
1.1.6 OBJECTIVES ........................... 6

CHAPTER 2. ...........................
REVIEW OF LITERATURE
........................... 7-8

CHAPTER 3.
...........................
3.1 RESEARCH METHODOLOGY ........................... 9
3.2 AMC's. OF INDIA ........................... 10- 14
CHAPTER 4. ...........................
DATA ANALYSIS & FINDINGS
........................... 15 - 35
...........................
CHAPTER 6.
........................... 36
IMPLICATIONS
CHAPTER 7. ...........................
LIMITATIONS
........................... 37

CHAPTER 8.
...........................
REFERENCES ........................... 38
CHAPTER 9. ...........................
ABSTRACTS
........................... 39
 CHAPTER 1.

INTRODUCTIONS.
 1.1. INTRODUCTION TO THE TOPIC
1.1.1. RATIONALE OF THE STUDY

There are a lot of investment avenues available today in the financial market for an investor with
an investable surplus. He can invest in Bank Deposits, Corporate Debentures, and Bonds where
there is low risk but low return. He may invest in Stock of companies where the risk is high and
the returns are also proportionately high. The recent trends in the Stock Market have shown that
an average retail investor always lost with periodic bearish tends. People began opting for
portfolio managers with expertise in stock markets who would invest on their behalf. Thus we
had wealth management services provided by many institutions. However they proved too costly
for a small investor. These investors have found a good shelter with the mutual funds.
Mutual fund industry has seen a lot of changes in past few years with multinational companies
coming into the country, bringing in their professional expertise in managing funds worldwide.
In the past few months there has been a consolidation phase going on in the mutual fund industry
in India. Now investors have a wide range of Schemes to choose from depending on their
individual profiles.

1.1.2. INTRODUCTION I THE INDUSTRY

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of
the Government of India and Reserve Bank and retained its monopoly and supremacy till banking sector mutual
fund came into operation in 1987. The history of mutual funds in India can be broadly divided into four distinct
phases. The first three phases can be viewed as pre crisis period.

First phase 1964-87:

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up
by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve
Bank of India. 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. The first scheme launched by UTI was Unit
Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of assets under management. Therefore, Phase I
commenced with the establishment of UTI in 1964 and the launch of Unit Scheme 1964 (US-64). During this
phase, UTI was the only institution offering mutual fund products and it experienced a consistent growth. UTI’s
investible funds, at market value (and including the book value of fixed assets) progressively grew from Rs.49
crores in 1965 to Rs.219 crores in 1970-71, to Rs.1126 crores in 1980-81 and further to Rs.5,068 crores by June
1987. By that date, its investor base had also grown to about 2 million investors. During this phase, US-64
became increasingly popular as an alternative to bank deposits. Master share, the equity growth fund launched

1
in 1986 was the first product in India to provide a dedicated vehicle for the entry of small investors into the
equity market. It proved to be a grand marketing success. 1986 also saw the launch of India Fund, the first
Indian off-shore fund for overseas investors which was listed on the London Stock Exchange.

Second Phase – 1987-1993 (Entry of Public Sector Funds):

The spectacular performance of UTI –specially the
first and largest open ended scheme –US 64- since its inception in 1964 and specially during 80s and upto 1997
had given the investing public a rich experience of the operation of the mutual fund. Although the monopoly of
UTI came to an end on 1987 when Govt. of India by amending Banking Regulation Act and Insurance Act
permitted commercial banks and LIC & GIC to set up mutual fund, the supremacy of different schemes of UTI
regarding aggregate investment, earning capacity, fund mobilization, dividend payment, equity investment,
capital appreciation was much more than any other mutual funds like banking sector MFs and insurance sector
MF up to 1997 due to efficient asset management. Therefore,1987 marked the entry of non- UTI, 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 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual
Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). 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 mutual fund industry had assets under management of Rs.47,004 crores.
Therefore, Phase II witnessed the advent of competition in the mutual fund industry with the launch of mutual
funds by subsidiaries of the nationalized banks and of the two insurance corporations viz. Life Insurance
Corporation of India and the General Insurance Corporation of India. In 1988, UTI also floated another off-
shore fund viz. The India Growth Fund which was listed on the New York Stock Exchange. During this phase,
there was a dramatic growth in the size of the mutual fund industry with investible funds, at market value,
increasing to Rs.53,462 crores and the number of investor accounts increasing to over 23 million. The buoyant
equity markets in 1991-92 and tax benefits under Equity-linked Savings Schemes enhanced the attractiveness of
equity funds.

Third Phase – 1993-2003 (Entry of Private Sector Funds):

With the entry of private sector funds in 1993,a new
era started in the Indian mutual fund industry, giving the Indian investors a wider choice of fund families. Also,
1993 was the year in which the first Mutual Fund Regulations came into being, under which all mutual funds,
except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin
Templeton) was the first private sector mutual fund registered in July 1993.The 1993 SEBI (Mutual Fund)
Regulations were substituted by a more comprehensive and revised Mutual Fund
Regulations in 1996. The industry now functions under the SEBI (Mutual Fund) Regulations1996.The number
of mutual fund houses went on increasing, with many foreign mutual funds setting up funds in India and also the
industry has witnessed several mergers and acquisitions. As at the end of January 2003, there were 33 mutual

2
funds with total assets of Rs. 1,21,805 crores. The Unit Trust of India with Rs.44,541 crores of assets under
management was way ahead of other mutual funds. Phase III marked the entry of private sector mutual funds
including foreign sponsors as also the prescription in 1993 by the Securities and Exchange Board of India of
mutual fund regulations. UTI’s Mastergain, launched in May 1992, was a phenomenal success with subscription
of Rs.4,700 crores from 63 lakhs applicants. The investible funds, at market value, of the industry increased to
Rs.78,655 crores and the number of investor accounts increased to 50 million.

Fourth Phase:
2003 and onward: This period saw in the initial year’s significant growth in the mutual fund
industry aided by a more positive sentiment in the capital market, significant tax benefits and improvement in
the quality of investor service. Investible funds, at market value, of the industry rose by June 2000 to over
Rs.110,000 crores with UTI having 68% of the market share. During 1999-2000, sales mobilisation reached a
record level of Rs.73,000 crores as against Rs.31,420 crores in the preceeding year. This trend has however
sharply reversed in 2000-2001 and investible funds at market value have declined and there have been
significant declines in the NAVs of funds.

IMPORTANT KEY WORDS RELATED TO MUTUAL FUND

1. NAV: Net asset value refers to the total value of the related mutual fund scheme. It shows the
overall value which may vary everyday as per the changes in the market.
2. Units: The value of mutual fund is divided into units as per the number of persons it is sold. The
value of each unit changes every day.
3. Unit holder: The investor who purchases the units of mutual funds is called unit holder. He/she
as keeps many units as he/ she units

3
 1.3 BENEFITS OF MUTUAL FUNDS

1.3.1. RISK DIVERSIFICATION

Mutual funds help to diversify the risk associated with the securities, because overall risk of the
particular mutual fund is proportionately divided among all the unit holders of mutual fund.

1.3.2. OPERATED BY PROFESSIONAL MANAGER

Mutual funds are kept and operated by the professional managers who are professional in this
particular field so the unit holders enjoy the professional Operation on these mutual funds.

1.3.3. PASSIVE INVESTMENT STYLE

Mutual fund is a passive investment style in which the owners of the unit holders do not
participate
directly but they keep these units passively. They don‟t need to participate directly they only have
to purchase the units and keep them in passive way.

4
 1.4 JUSTIFICATION OF THE RESEARCH.

The mutual fund is an important financial institution which can play a significance
role in the development of any country. If they perform in an efficient way and to the
expectation of the investing public, then a large number of investors can be attracted
towards these. Today it is noticed that s large number of mutual funds schemes has
been floated in the market. It is very difficult for average investors to examine their
performance. Thus, it is very important to evaluate the performance of the mutual
funds so that the retail investors can make valued judgment for selecting the mutual
funds for their investment purpose. Further, it is also significant to know which
mutual funds is functioning as the prescribed regulatory norms whether the
investment decisions have been taken by the fund managers as per the guideline, or
not. It is essential to ensure due diligence, transparency and safety in portfolio
selection by the mutual funds.

5
 1.5 OBJECTIVE OF THE RESEARCH

To analyse that which of selected mutual funds provide better return at lower the risk.

1. To do comparative analyse of selected mutual fund scheme

2. To analyse risk and return of different schemes of mutual funds. The mutual
fund schemes are comparing with their benchmark return to know the
performance of the schemes and also know which mutual fund is providing
better return for the invested during 5 years

6
CHAPTER 2.

REVIEW OF
LITERATURE
 PERTAINING REVIEW OF LITERATURE
OF ANALYSIS OF VARIOUS MUTUAL
FUND SCHEMES IN INDIA
1. Dr. Yogesh Kumar Mehta (Feb 2012): has studied Emerging Scenario of
Mutual Funds in India: An Analytical Study of Tax Funds. The present study is
based on selected equity funds of public sector and private sector mutual
fund. Corporate and Institutions who form only 1.16% of the total number of
investors accounts in the MFs industry, contribute a sizeable amount of Rs.
2,87,108.01 crore which is 56.55% of the total net assets in the MF industry. It
is also found that MFs did not prefer debt sectgment.
2. Dr Surender Kumar Gupta and Dr. Sandeep Bansal (Jul 2012): have done a
Comparative Study on Debt Scheme of Mutual Fund of Reliance and Birla
Sunlife. This study provides an overview of the performance of
debt scheme of mutual fund of Reliance, and Birla Sunlife with the help of Sharpe
Index after calculating Net Asset Values and Standard Deviation. This study
reveals thatreturns on Debt Schemes are close to Benchmark return
(Crisil CompositeDebt Fund Index: 4.34%) and Risk Free Return: 6%
(average adjusted for last five years).

3. Anand (September 2017) : Conducted research on “A Comparative Analysis on Various.

Mutual Fund Schemes of HDFC and SBI as an Investment Option for Retail Investors in
India". The objective of the study is to compare the performance of selected mutual fund
and evaluate the risk and return using the various statistical tools like CAGR (Capitalized
Annual Growth Rate), Alpha, Beta, standard Deviation and Sharpe ratio and parameters
and also analysis that which mutual fund scheme is provided better return. The random
samplings are using in this study and also the six mutual fund schemes are compare by
the researcher including equity, debt, balanced and sector specific funds. The findings
of this study that the mutual funds provide the professional approach towards the
investment.

7
4. Dr. Sarita Bhal, July 2012) Conducted research on “A Comparative Analysis of Mutual Fund
Schemes in India”. The objective of the study to examine the performance of selected schemes on
the basis of risk and return and compare the performance of selected schemes with benchmark index
to see the schemes is outperforming and underperforming the benchmark. The research methodology
is to select random basis and monthly NAV of different schemes have been used for this study for the
period of five years. In this study the secondary data are used and the calculation done through
standard deviation, beta, alpha and also consider the market risk. The data are measured by the
Sharpe, Jenson and Treynor ratios. For the research study the all schemes are provide the positive
returns.

5. (Dr. Nidhi Sharma, Feb, 2019) Conducted research on “Performance Analysis of Mutual Funds: A
Comparative Study of the Selected Hybrid Mutual Fund Schemes in India”. The objective of the stud
is to measure and compare the performance of the select hybrid mutual fund schemes in India. The
selection of hybrid schemes is based on top 10 ranking given by CRISIL and that rank based on the
NAVs of the schemes. The data are used is primary data and tools used in this study are NAV,
average return, beta, R- square and standard deviation.

6. (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.

7. Singh B K (2012) in an article “A study on investors’ attitude towards mutual funds as an

investment option” from International Journal of Research in Management has reiterated the
need for spreading the awareness about Mutual Funds among common masses. There is a strong
need to make people understand the unique features of investment in Mutual Funds. From the
existing investors point of view the benefits provided by mutual funds like return potential and
liquidity have been perceived to be most attractive by the invertors’ followed by flexibility,
transparency and affordability.

8
 CHAPTER 3.
RESEARCH
METHODODOLOGY
 3. RESEARCH METHODOLOGY
1. Sources of Data
The sources of data are collected from the based on the secondary data. Data are
collected through
online sources like NSE, BSE, and Money control, ET Money, Fincash and Morning
Star etc.
2. Data collection
Secondary data has been used for this research, collected from various research
papers. The study
consider the period of 5 years from 2016 to 2020.

3. Tools and Techniques

Statistical tools and techniques used in this study is Alpha, Beta, standard deviation, 3.
Sharpe ratio
to measures volatility of returns.
Standard Deviation () =
√𝑌−𝑌 ÷N
Y = Fund Return
Sharpe ratio(S) = 𝑅𝑝 - 𝑅𝑓 /
Where,
𝑅𝑝= Average Return
𝑅𝑓= Risk free return
Sample Size
For this study 5 AMCs have been selected.
1. ICICI Prudential Mutual Fund
2. HDFC Mutual Fund
3. Aditya Birla Sun Life Mutual Fund
4. UTI Mutual Fund
5. SBI Mutual Fund

9
CHAPTER 3.

AMC's OF INDIA.
 3.1 SELECTED AMC's IN INDIA.

1. ICICI Prudential mutual fund is the second largest asset management company in
India. ICICI
prudential mutual fund was established in 1993.
Type : Public
Industry : Mutual Funds
Founded : 1993
Headquarters : Mumbai, India
Area served : India
Key people : Mr. Nimesh Shah (MD & CEO)
Mr. S. Naren (Chief Investment Officer)
Mr. Rahul Goswami (Chief Investment Officer - Fixed Income)
Products : Mutual Fund, Portfolio Management Services, Advisory Services, Real
Estate Investments
AUM : Increase ₹305,739 crore (US$43 billion) (31 March 2018)
Number of employees : 2000 - 2500.

10
2. HDFC Asset Management Company
HDFC provides mutual fund services through its subsidiary HDFC Asset
Management accounting
Limited. The average Assets Under Management (AUM) of HDFC Mutual Fund for
the quarter Jul-13 to Sep-13 was INR 1.03 trillion.
Operations
HDFC's distribution network spans 396 outlets (including 109 offices of HDFC's
distribution company.
HDFC Sales Private Limited) which cater to approx. 2,400 towns and cities spread
across India..
cater to Non-Resident Indians, HDFC has offices in London, Singapore and Dubai and
service associates in Middle East countries.
In addition, HDFC covers over 90 locations through its outreach programmer. HDFC's
marketing efforts continue to be concentrated on developing a stronger distribution
network. Home loans are also through HDFC Sales, HDFC Bank Limited and other
third party direct selling Agents (DSA).
The corporation has 232 institutional owners and shareholders filing through 13D/G
or 13F forms withthe Securities Exchange Commission. Largest investor amongst
them is Vanguard International Growth fund.

11
3. Aditya Birla Sun Life AMC Limited
Formerly known as Birla Sun Life Asset Management
Company, this fund house is the 3rd largest in terms of
the AUM size.
Presently it is known as Aditya Birla Sun Life (ABSL)
Asset Management Company Ltd. It is a joint venture
between the Aditya Birla Group in India and Sun Life
Financial Inc of Canada. It was set up as a joint venture
in

12
4. Nippon Life Asst Management
With Assets under Management of approximately ₹ 2.5
Lakh crore, Reliance Mutual Fund is one of India‟s
leading mutual fund companies.
A part of Reliance Anil Dhirubhai Ambani (ADA) Group,
Reliance Mutual Fund is one of the fastest growing
AMCs in India.
Reliance Capital Limited (RCL) is the sponsor and
Reliance Capital Trustee Co. Limited is the trustee of
Reliance Mutual Fund (RMF). It was registered on June
30, 1995. Reliance Mutual Fund was originally Reliance
Capital Mutual Fund and changed its name in 2004.

13
5. SBI Fund Management Pvt. Ltd
SBI Funds Management Pvt. Limited is a joint venture between the State Bank of India
(SBI) and financial services company Amundi, a European Asset Management
company in France. It was launched in 1987. Ms. Anuradha Rao is the Managing
Director and CEO.
In 2013, SBI Fund Guru, an investor education initiative was launched.

14
 CHAPTER 4.
DATA ANALYSIS
&
FINDING
CHAPTER 5.

IMPLICATIONS
 5. IMPLICATIONS OF THE STUDY OF MUTUAL FUND SCHEMES

Investor Education: Research on mutual fund schemes can help educate investors
about the various types of funds available, their investment objectives, risk profiles,
and performance metrics. This knowledge empowers investors to make informed
decisions aligned with their financial goals.

Market Efficiency: Analyzing mutual fund schemes can contribute to the

understanding of market efficiency by assessing whether fund managers consistently
outperform or underperform benchmark indices. Insights gained from such studies
can shed light on market dynamics and the effectiveness of active management
strategies.

Portfolio Diversification: Research findings on mutual fund schemes can highlight the
importance of diversification within investment portfolios. By examining the
performance and correlations of different types of funds, investors can better allocate
their assets to minimize risk and maximize returns.

36
CHAPTER 6.

LIMITATIONS
 6. LIMITATIONS OF THE STUDY

LIMITATIONS
1. Mutual Funds of only five years are taken into account for analyzing
the performance.
2 . The comparative study is restricted to the selected schemes of asset
management companies.
3. The financial market in India is unpredictable in nature and the
future aspects of the mutual funds may vary

37
CHAPTER 7.

REFERENCES
 7. REFERENCES

• Kumar, A. Vijay (1999), Mutual Funds- a rebus galloping Indian

capital market.
• Capaul, Carlo, Ian Rowley and Sharpe, W. F. (1993), International
Value and Growth Stock Returns, Financial Analysts Journal, pp. 27-
36.
• Grinold, Richard C (1989), the Fundamental Law of Active
Management, Journal of Portfolio Management, pp. 30-37.
• Hamilton, S., H. Jo, and M. Statman (1993), The Investment
Performance of Socially Responsible Mutual Funds, Financial
Analysts Journal, Nov/Dec
• Bhole, L.M (2005), Financial Institutions and Markets, Tata
McGraw Hill publishing company Limited.
• Gupta, L.C. (2002), Household Investors survey, society for capital
market research and development, New Delhi.
• Lawrence S. Ritter, L. Silber, Principals of money, Banking and
Financial Markets.
• Madan Goyal (1993) Mutual Funds, Financial Institutions and
economic development edited by Devedra Thakur.
• S.S. Prasada Rao and G.V. Satya Sekhar, (2006), Leaders vs Laggard-
An Appraisal of Select Mutual Funds, Indian Journal of Commerce, Vol.
59, No.2.
• Sharpe W. F (1992) Asset allocation: Management style and
performance measurement, Journal of Portfolio Management, Vol. 18,
7-19 .

38
CHAPTER 8.

ABSTRACTS
 8. ABSTRACTS

Mutual funds allow for portfolio diversification and relative risk

aversion through collection of funds from the households and
investment of the same in the stock and debt markets. Fixed- Income
Funds in India are a kind of mutual fund which makes
investment in debt securities that have been issued either by the
companies, banks, or government. Fixed- Income Funds in India
are also known as debt funds and income funds.
Using various statistical measures the present study aims to evaluating
the performance of a few selected income or debt mutual
funds schemes of India on the basis of their daily NAV. Popularity of
income schemes has only increased in the last decade.
Income mutual funds they have seen tremendous growth in their
number of schemes from 91 on 31st march 2001 to 330 on 31st
march 2010. 506 in 2008 was the maximum ever in terms of total
schemes floating in the market. This category has seen a
decline only twice in the last decade. First fall was posted in the year
2003 and the second fall was reported in the year 2010. One
striking fact which comes to light is the huge percentage contribution
of income schemes towards the total AUM of the Indian mutul fund
industry.

39