PROMINENT

MUTUAL Risk and Return

Analysis
FUNDS
About Mutual Funds
• A mutual fund is a pool of money managed by a professional Fund
Manager.
• It is a trust that collects money from a number of investors who share a
common investment objective and invests the same in equities, bonds,
money market instruments and/or other securities. And the income /
gains generated from this collective investment is distributed
proportionately amongst the investors after deducting applicable
expenses and levies, by calculating a scheme’s “Net Asset Value” or
NAV. Simply put, the money pooled in by a large number of investors is
what makes up a Mutual Fund.
Mutual Fund Scheme Classification
1.Organisation Structure – Open ended, Close ended, Interval
2.Management of Portfolio – Actively or Passively
3.Investment Objective – Growth, Income, Liquidity
4.Underlying Portfolio – Equity, Debt, Hybrid, Money market
instruments, Multi Asset
5.Thematic / solution oriented – Tax saving, Retirement benefit, Child
welfare, Arbitrage
6.Exchange Traded Funds
7.Overseas funds
8.Fund of funds
Risk Factors
• Mutual Fund Schemes are not guaranteed or assured return products.
• Investment in Mutual Fund Units involves investment risks such as trading volumes,
settlement risk, liquidity risk, default risk including the possible loss of principal.
• As the price / value / interest rates of the securities in which the Scheme invests
fluctuates, the value of investment in a mutual fund Scheme may go up or down.
• In addition to the factors that affect the value of individual investments in the Scheme,
the NAV of the Scheme may fluctuate with movements in the broader equity and
bond markets and may be influenced by factors affecting capital and money markets
in general, such as, but not limited to, changes in interest rates, currency exchange
rates, changes in Government policies, taxation, political, economic or other
developments and increased volatility in the stock and bond markets.
• Past performance does not guarantee future performance of any Mutual Fund
Scheme.
Advantages of investing in mutual funds
Professional Management

Risk Diversification

Affordability

Liquidity

Tax Benefits

Low Cost

Well Regulated
Prominent Large Cap Funds
NIPPON INDIAN LARGE CAP FUND
DIRECT- GROWTH

KOTAK BLUECHIP FUND - DIRECT

PLAN - GROWTH

HDFC TOP 100 FUND

SBI BLUECHIPFUND- DIRECT PLAN -

GROWTH

ICICIPRUDENTIAL BLUECHIP FUND

- DIRECT PLAN - GROWTH
Prominent Medium Cap Funds
Kotak Emerging Equity Fund

SBI Magnum Midcap Fund

Taurus Discovery (Midcap) Fund

Edelweiss Mid Cap Fund

Axis Midcap Fund

Prominent Small Cap Funds
KOTAK SMALL CAP FUND -
GROWTH

UNION SMALL CAP FUND DIRECT

GROWTH

HDFC SMALL CAP FUND GROWTH

AXIS SMALL CAP FUND DIRECT

GROWTH

SBI SMALL CAP DIRECT PLAN

GROWTH
 Risk-Return Analysis
NIPPON INDIAN LARGE CAP FUND DIRECT- GROWTH

Standard Deviation 21.94 19.25 High Volatility

Beta 0.97 0.86 High Volatility

Better Risk Adjusted

Sharpe Ratio 0.55 0.39
Returns
Better Risk Adjusted
Treynor’s Ratio 0.12 0.09
Returns
Better Risk Adjusted
Jension’s Ratio 0.65 -0.91
Returns

In the last 10 years fund has give a return of 318.40%, while in the last 3 years fund has performed 91.12%.

• This fund has a high volatile returns.

• As compared to other funds, this fund has high volatile fund performance.
 Risk-Return Analysis
HSBC LARGE CAP FUND DIRECT-GROWTH

Standard Deviation 21.7 19.25 High Volatility

Beta 0.99 0.86 High Volatility
Sharpe Ratio 0.38 0.39 Poor risk adjusted returns
Treynor’s Ratio 0.08 0.09 Poor risk adjusted returns
Jension’s Ratio -2 -0.91 Poor risk adjusted returns

Fund has improved its performance compared to similar funds in the Large Cap Fund. Existing investors can continue their
SIPs/ investments in this fund. Other investors can also start a fresh investments in this fund.

In the last 10 years fund has give a return of 65.22%, while in the last 3 years fund has performed 219.76%.
• This fund has a high volatile returns.
• As compared to other funds, this fund has high volatile fund performance.
Risk-Return Analysis

Scheme Name 3Y Return 5Y Return Standard Deviation Beta

Kotak Emerging
Equity Fund 27% 16% 18.06 0.98

SBI Magnum Midcap

Fund 29% 14% 19.24 1.06

Taurus Discovery
(Midcap) Fund 21% 11% 17.53 0.89

Edelweiss Mid Cap

Fund 27% 14% 17.72 0.99
Graphical Representation

BETA VALUE STANDARD DEVIATION

1.1 19.5

1.05 19

1 18.5

0.95 18

0.9 17.5

0.85 17

0.8 16.5
Kotak Emerging SBI Magnum Taurus Discovery Edelweiss Mid Cap Kotak Emerging SBI Magnum Taurus Discovery Edelweiss Mid Cap
Equity Fund Midcap Fund (Midcap) Fund Fund Equity Fund Midcap Fund (Midcap) Fund Fund
Interpretation
• From the above table, we can see that the SBI Magnum Midcap Fund has the highest 3-year return of 29%,
followed by Kotak Emerging Equity Fund with a return of 27%. However, when it comes to 5-year returns, SBI
Magnum Midcap Fund has a return of 14%, while Kotak Emerging Equity Fund has a return of 16%.

• In terms of risk, SBI Magnum Midcap Fund has the highest standard deviation of 19.24, followed by Kotak
Emerging Equity Fund with a standard deviation of 18.06. This means that these two funds are more volatile
compared to the other two funds.

• When it comes to beta, SBI Magnum Midcap Fund has the highest beta of 1.06, indicating that it is more
sensitive to the market compared to the other funds. On the other hand, Taurus Discovery (Midcap) Fund has
the lowest beta of 0.89, which means it is less sensitive to the market.
Risk-Return Analysis

Fund Name 3-year return 5-year return Standard Deviation Beta

Axis Midcap Fund 22.60% 21.70% 15.37 0.97

HDFC Mid-Cap
Opportunities Fund 21.80% 19.90% 15.72 0.95

Quant Mid Cap Fund 22.70% 21.20% 15.85 0.98

PGIM India Midcap

Opportunities Fund 23.00% 20.90% 15.65 0.98
Nippon India Growth
Fund 19.20% 16.90% 16.50 0.93

UTI Mid Cap Fund 18.30% 16.70% 15.50 0.95

Graphical Representation

Standard Deviation Beta Value

16.4 0.98
16 0.96
15.6 0.94
15.2 0.92
14.8 0.9
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Interpretation
• Based on the provided data, it is evident that all the funds have delivered strong returns over the past three
and five years. The PGIM India Midcap Opportunities Fund stands out with the highest 3-year return of 23%,
while the Nippon India Growth Fund has the lowest 3-year return of 19.2%.

• When it comes to evaluating the risk measures of these funds, standard deviation is a metric that reflects
their returns' volatility, while beta indicates how sensitive the funds are to market changes. It is noteworthy
that all the funds have a standard deviation within a narrow range of 15.37 to 16.5, indicating that their
volatility levels are relatively similar. However, the PGIM India Midcap Opportunities Fund and Quant Mid
Cap Fund have slightly higher betas than the others, which means that they are more responsive to market
movements.
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