EXECUTIVE SUMMARY

The mutual funds are the trusts which collect the savings by many investors who are having a
common financial goal. The money which is collected is invested in the capital instruments like
debentures, shares and other securities.
The mutual fund helps the investors to pool their money into diversified selection of securities which
is managed by professionals. The mutual fund offers a selection of innovative products like fixed
maturity plans, sector funds and many more.
The main objective of investor is to minimize the risk and maximise the return. The market and the
credit risk can be reduced through diversification. The mutual funds are the smartest ways for the
people to invest their money. The people prefer Bank as the first priority to invest and Mutual fund
as second priority.
The study is conducted on the performance evaluation of equity funds at Anand Rathi financial
services Ltd. This project helps to know about the concept of mutual fund and how to evaluate the
performance of equity funds. The Statistical tools used to evaluate is mean, standard deviation and
the Performance measures used for the study are Sharpes ratio, Treynors ratio and Jensen ratio and
also it helps to know about which equity fund is doing better. The main objective of the study is to
find out the return and risk of equity funds, to compare the performance of equity funds with BSE
Sensex and see if it is outperforming the market and to calculate Sharpe, Jensen and Treynors ratio
to the equity funds and rank them.
The major finding is the selected equity funds for the study are performing well, all selected equity
funds returns are more than the market return so the selected equity funds for the study is
outperforming the market. According to Sharpes, Treynors and Jensens ratio index funds are not
performing well and UTI-MNC fund (UGS10000) is performing well.

CHAPTER- 1
1.1 INTRODUCTION ABOUT THE INTERNSHIP:
Internship is an integral part of students academic curriculum. The period of internship is 10
weeks helps to bridge the gap between knowledge and its application. It helps the students to
gain insights and exposure to the industry. It helps to know about the functioning of the
company and work environment. It enables student to understand the problem of the
company and suggest ways to overcome the problems.

1.2 TOPIC CHOSEN FOR THE STUDY:

PERFORMANCE EVALUATION OF EQUITY MUTUAL FUNDS.

1.3 NEED FOR THE STUDY:

Mutual funds are the best investment for small investors. By looking at the growth of assets
under managements we can say it gained immense popularity in the current situation.
However, the growth of assets under management in India is low as compared to other global
economies.
There is a need to study about mutual fund operations, types of mutual funds and how far
equity funds giving returns. Today there is lot of mutual funds available in the market, the
investors find difficulties to examine the mutual fund performances. Thus it is very important
to measure the performance of the equity funds and it helps investor to invest in the best
mutual fund.

1.4 OBJECTIVES OF THE STUDY:

1. To find out the risk and return of equity funds.
2. To compare the performance of equity funds with Sensex and see if it is
outperforming the market.
3. To calculate Sharpe, Jensen and Trenors ratio to the equity funds and rank them.

1.5 SCOPE OF STUDY:

This study is regarding performance evaluation of equity mutual funds. It covers the six type
of equity mutual funds namely Diversified equity, Equity linked tax saving scheme(ELSS),
large capital equity fund, Index equity fund, sector equity fund, and mid cap equity fund.
Also, it further covers two schemes under each of the above mentioned six type equity mutual
funds. On the whole it covers risk and return comparison of equity fund schemes with BSE
SENSEX. The whole analysis is based on NAV of each equity funds and the period of NAV
is from 01-01-2011 to 31-12-2015.

1.6 RESEARCH METHODOLOGY:

NATURE OF DATA:
The data is collected in following ways:
1. Primary data
2. Secondary data

PRIMARY DATA is collected through personal discussion with company staff.

SECONDARY DATA:

The NAV values are taken from the website www.amfIndia.com

The BSE values are taken from www.bseIndia.com

The theoretical aspects are taken from textbooks.

SAMPLING POPULATION
The equity funds of India.

SAMPLING TECHNIQUE: Convenience sampling

SAMPLE SIZE:
Six types of equity funds are selected. In each type, two schemes are considered for study.
The selected equity fund schemes are launched on or before 01-01-2011 are taken into
consideration. The risk free rate of investment is taken as 7.27 which is the interest rate on
the 5 year government securities.

TOOLS AND TECHNIQUES:

Statistical techniques used for the study:
1. Mean
2. Standard deviation
Performance measure used for the study:
1. SHARPES RATIO
2. TREYNORs RATIO
3. JENSEN RATIO

RESEACH DESIGN:
Descriptive research
It is the study of existing facts to come to a conclusion. In this study tried to analyze the past
performance of the equity funds. The study is done on different types of equity funds to know
if it outperforms the market or not.

HYPOTHESIS:
H1: The equity mutual funds are outperforming the market.

1.7 REVIEW OF LITERATURE:

1. Ms Dhanalakshmi K (2013) conducted a study on performance on the investment of
mutual funds with HDFC and SBI. She used Alpha measure, Beta, Sharpe Ratio,
Jensens Measure and Treynor Ratio. The major findings from this study are the
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investment in HDFC balanced, equity and gilt mutual funds are better than the SBI
funds over the last three years.
2. Prof. Mahesh K Patel and Prof. Kalpesh Prajapathi (2012) did a study on
performance evaluation of mutual fund schemes of India. In this study they did risk
and return analysis and calculated Famas measure, Jensens ration, Sharpes ratio and
Treynors ratio. They have taken daily closing NAVs to calculate all the Ratio and
the period of coverage is from January 1st 2007 to December 31st 2011. The major
finding by this study is the mutual funds have given good returns during 2007 to
2011.

3. Sukhwinder Kaur Dhanda and Dr. G. S. Batra (2012) they did a study on
performance evaluation of selected open ended schemes in term of risk and return.
They used standard deviation, Beta, Sharpe ratio and Treynor ratio. They used BSE30 as a benchmark to study the performance of mutual funds. The period of coverage
is 1st April 2009 to 31st march 2011. The major findings is only three schemes are
performed better than benchmark.

4. Panwar and Madhu mathi (2006) they did a study on performance and characteristics
of mutual funds. They used sample of public sector sponsored fund and private sector
sponsored mutual fund of different net assets. They statistical tool used for this study
are standard deviation, variance and average co efficient of variation to investigate the
differences in characteristics of assets. The major finding is the public sector
sponsored funds and private sector sponsored fund is performing same in terms of
returns but not in terms of variance, standard deviation and co efficient of variation.

1.8 LIMITATIONS OF THE STUDY

Only two schemes are taken in each type of equity funds.

Daily NAV would have given more precise result, monthly NAV is taken for
study.

Only 5 years data is taken for the study the whole data would have given clear
picture.
4

The study is limited to equity funds.

Only three measures are taken to evaluate the equity funds namely Treynors,
Jensens and Sharpes ratio.

CHAPTER - 2
INDUSTRY AND COMPANY PROFILE
2.1 INDUSTRY PROFILE

2.1.1 INTRODUCTION
The stock is nothing but the share of the company which is held by group or an individual. It
represents outstanding asset of the company which is payable to shareholders after giving of
secured and unsecured debt.
Stock markets: It is a market where selling and buying of listed and unlisted securities takes
place. It facilitates pubic to trade in securities.
The market is divided into two:

1. Primary market
2. Secondary market

Primary market is the place or a market where the first time or the new issue of the shares
are offered to public. It is also called as new issue market.
Secondary market is a place or a market where the securities which are issued in the
primary market are traded.

2.1.2 Stock Exchanges: Stock Exchanges are well planned market place. It is a mutual
organization or corporation where the members of the organization get together to buy or sell
securities. The members act as agents for their customers and also as principals for their own
accounts. A stock exchange gives facilities like issue and deliverance of securities and other
financial instruments. It also facilitates the payment of dividends and incomes. The stock
exchanges are a market for old securities, where already issued shares are bought and sold.

2.1.3 SEBI (SECURITIES AND EXCHANGE BOARD OF INDIA):

The securities and exchange board of India is established by government of India by an
executive resolution in 1988 and it was upgraded as fully statutory board or autonomous body

by securities and exchange board of India. The separate power has given to stock exchanges
on behalf of government control for the development and regulation of the market.

2.1.4 THE OBJECTIVES OF THE BOARD ARE:

1. The main aim is to guard the interest of securities
2. To promote the securities market and to the development of securities market

2.1.5 MAJOR STOCK EXCHANGE IN INDIA:

BSE (Bombay stock exchange)
NSE (National stock exchange)

Bombay stock exchange:

BSE is the Asians first and fastest stock exchange in world which was established in 1875. It
has the 6 micro seconds speed and from the past 140 years BSE is the leading exchange
group. The bourse was established in 1875 as The Native Share and Stock Brokers
Association. BSE has a broad share holder-base. It is also a demutualised and corporatized
entity with two leading global exchanges as a partner such as Singapore Exchange and
Deutsche Bourse. BSE provides stage for trading in equity, debt, mutual funds and
derivatives. It helps to SMEs (small and medium enterprises) by acting as a market for
trading in equity.
In BSE There is more than 5500 companies are listed and BSE is the worlds No. 1 exchange
in listed members, the listed companies on BSE has a total market capitalization of 1.64
Trillion USD as of Sep 2015.

NSE (National stock exchange):

The National Stock Exchange of India Limited (NSE) was established in 1992 and it is
located in Mumbai. It is the Indias leading stock exchange. It was the first demutualized
electronic exchange in the country. NSE was the first exchange to provide a modern and fully
automated screen-based electronic trading system in India which helps in giving easy buying
and selling of securities across India.

NSE holds 12th place in largest stock exchanges as of 23 January 2015. It has the market
capitalization US$ 65 trillion. The most used index by investors around the world as a
barometer of the Indian capital markets is 50 stock index.

2.1.6 FUNCTIONS OF STOCK EXCHANGE:

Providing a ready market to investors: it helps public to trade securities which are
already issued by providing ready market to investors, speculators and industrial
enterprises.

Providing facilities for working: it gives opportunities to the investors to perform

their activities in the stock exchange with all their resources.

Safeguarding the activities of investors: It makes fair judgment and directors will
disclose all material facts to their respective share holders so it helps in safeguarding
activities for investors.

Operating a compensation fund: when the investor suffers loss due to speculating
dealing in the stock exchange it gives compensation to investors and also operate it.

Creating the discipline: The rules of the stock exchanges are very strict which are
designed to protect its members and general public so this helps in creating discipline
among its members.

Checking of equilibrium: The securities are checked before it is admitted for the
listing and checked.

Maintenance of liquidity: Banks and Insurance Company purchases securities by

stock exchange, these securities are marketable which means it can be converted into
cash easily. So the bank holds securities instead of cash in their reserves so the stock
exchange helps in maintaining liquidity in banking system.

Promotion of saving habit: It is platform of savings to general public. This leads to

investments of funds by public in government or private securities so it promotes the
habit of saving.

Promotion of capital formation: It helps the public to save the money and
investment in the government securities, by this government will get money to do
projects of social value and national importance.

2.1.7 FEATURES OF STOCK EXCHANGE

Market for securities: It is a market where securities of corporate, government

and semi government bodies are traded.

Deals in second hand securities: The securities which are already issued in the
primary market are traded in the stock exchange.

Regulates trade in securities: It does not trade any securities in its account. It
ensures that the trading is fair and also it provides the infrastructure which is
necessary and facilitates to trade in securities for its members.

Allow dealing only listed securities :

The securities which are not listed will not allow trading in the stock exchange,
the stock exchange maintains a list of securities which can be traded in stock
exchange.

Transactions are done only by members: The outsiders or direct investors are
not allowed to trade in the stock exchange only the members of stock exchange
can trade in stock exchange.

Working as per rules: The stock exchange follows the guidelines given by SEBI.

Specific location:

The particular market place is fixed where the registered

brokers come together to conduct trading activities.

2.1.8 THE FINANCIAL SERVICE INDUSTRY:

Financial services is nothing but the economic services given by the finance industry, finance
industry means the businesses which manage money. It includes credit card companies, credit
unions, accountancy, insurance companies, stock brokerages investment funds, consumer
finance companies and government sponsored enterprises.

India financial system is divided into:

1. Money market.
2. Capital market.
1. Money market: it is a market which deals with transaction related to short-term
instruments with maturity period less than one year.

Money market is further divided into organized money market and unorganized
money market. The unorganized money market considers players like money lenders,
chits funds etc and organized sector considers commercial banks.
2. Capital market:

capital market deals with transaction related to long term

instruments with maturity period greater than one year.

2.2 COMPANY PROFILE

ANAND RATHI FINANCIAL SERVICES LTD
2.2.1 BACKGROUND OF THE COMPANY:
Anand rathi is a investment bank with full service which was founded by Mr Anand Rathi
and Pradeep gupta in 1994. It offers various services to public like corporate finance, wealth
management, advisory services, investment banking and also brokerage and distribution
services in the area of equities, commodities, structured products, bonds, corporate deposits
and loans to corporations, high net worth individuals, institutions and families..
The firm has lot of branches in India it operates in 1200 locations through its branches,
representative officers/associate companies and sub brokers. it is also present in international
locations such as Hong Kong, Dubai and London. The Anand Rathi has employees over 2500
professionals.
The philosophy followed by the company is client centric which mainly focus on maintaining
the highest standards of ethics, excellence and professionalism and also to provide long term
value addition to clients.
The activities of the firm are classified into different client groups that is individuals,
institutions, private clients and corporate. In 2009 Anand Rathi got the award of best
domestic private bank in India in the fifth annual private banking poll of Asia Money.
Citigroup venture capital international company joined Anand Rathi as a financial partner.
Citigroup is known for venture capital and private equity. The Anand Rathi has a well
organised research teams and it is placed each unit to satisfy the financial needs of customers.
The Anand Rathi group is a member of NSE (National stock exchange), BSE ( Bombay stock
exchange), National commodity exchange (NCDX), Multi commodity exchange (MCX),
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National securities depository limited (NSDL), United stock exchange(USE), ARN holder
and Central depository services limited (CDSL).

2.2.2 NATURE OF BUSINESS

1. Commodities
2. Derivatives
3. Equities
4. IPOs- Initial public offerings
5. Mutual funds
6. Insurance- life and non life insurance
7. Corporate fixed deposits
8. Bonds

2.2.3 VISION MISSION AND QUALITY POLICY

VISION: To become a leader in innovation and to become the first choice for
clients and employees

MISSION: To be Indias first multinational providing complete financial services

solution across the globe

QUALITY POLICY: At Anand rathi, Employees are always determined for

betterment of their own set standards and also improvement in achieving total quality
management.

2.2.4 PRODUCTS AND SERVICES

INVESTMENT SERVICES:
For investments Anand rathi prefers client centric approach because they believe that
every customer is unique their objectives and the financial goals of each customer is
different. They have categorized clients into two categories privilege and preferred.
Privilege- these are the customers who come to Anand Rathi for availing specific
product and service. Product requirements are pre defined and they pick from wide
range of offerings by Anand rathi.

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Preferred - These are the type of customers to whom Anand Rathi offers customised
financial planning solutions through detail client profiling. Here investments are
strategically planned to meet financial goals and objectives of the customer.
WEALTH MANAGEMENT:
Anand Rathi has a good wealth management modes and it gives constant returns and
protects wealth by employing suitable safety nets and estate planning solutions.
Anand Rathi is ranked as no 1 private bank in both the years 2009 and 2010, by their
clients in an international private banking poll conducted by Asia money magazine.
Clients voted Anand rathi as the best domestic private bank in India for 5 consecutive
years from 2009 to 2013. This shows the faith and trust of clients on Anand Rathi.
INVESTMENT BANKING:
Anand Rathi investment banking has grown into a leading partner for mid cap growth
companies. It is a leading investment focused on the middle market in India. The
firms core principle is integrity and dedication to the clients success. It offers clients
high quality products and unbiased advice. It has group of experts and experienced
professionals recruited from global financial institutions.
INSTITUTIONAL EQUITY:
Anand Rathi is the Indias leading broker in institutional equity which provides
superior corporate access, inclusive and broad research coverage, market lending
trading in mid and small cap market companies. It became the Go-To house by for
small and mid market by organising industry leading investors conferences and
meets, providing high quality research reports and executing transactions.

2.2.5 AREA OF OPERATION

GLOBAL: Bangkok, Dubai, Hong Kong, Singapore.
NATIONAL:
Andhra Pradesh

Kerala

Assam

Madhya Pradesh

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Bihar

Maharashtra

Chhattisgarh

Orissa

Delhi

Punjab

Goa

Rajasthan

Gujarat

Tamil Nadu

Haryana

Uttar Pradesh

Jammu and Kashmir

Uttaranchal

Jharkhand

West Bengal

Karnataka

REGIONAL:
Bengaluru

Banahatti

Bailhongal

Bellary

Belgaum

Bijapur

Davangere

Dandeli

Dharwad

Gadag

Gulbarga

Hospet

Hubli

Harihar

Kolar

Kundapur

Manglore

Mysore

Nipani

Raichur

Ranebennur

Shivmoga

Sirsi

Tumkur

Udupi

Yadgiri

2.2.6 OWNERSHIP PATTERN:

Founder

- Anand Rathi

Co-founder and vice chairman

- Pradeep gupta

Managing director

- Amith rathi

Executive director

- Prithi gupta

Director

- Supriya rathi

Independent directors

- Rahul yadav, C.D Arha, Mr.S A Dave

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2.2.7 COMPETITORS:
The main competitors are

Angel stock broking limited:

It is a stock broking firm established in 1987 and it is also a member of BSE, NSE,
NCDEX and MCX. The company has 8500 franchised outlets all over India. The
services offered by Angel Broking are depository services, online stock broking,
commodity trading, wealth management solutions, and portfolio management
services. The Company published many research reports related to investment
broking

Sherkhan stock broking limited:

It is Indias leading online retail broking started in 2000. It is serving 950000
customers with 1529 outlets across 450 cities. It has spread its branches outside India
it is also present in USA and Oman. It offers variety of services like trade execution in
futures, commodities, execution in equities, structured products and commodities,
portfolio management. It is the member of NSE and BSE. It has a mobile app called
share mobile through this app one can trade.

Way to wealth stock broking limited:

It is an investments consultancy firm started in 1984 and the firm is popular for
making investing simpler and gives more profit to investors. It has more than 1000
wealth managers across India.

HDFC Securities limited: It is a subordinate of HDFC bank. It is leading and oldest

stock broking in India which is founded in 2000. The head quarter is situated in
Mumbai. It is a member of BSE and NSE. It has the online trading portal.

2.2.8 ACHIEVEMENTS/AWARDS
2015: The best wealth manager of India by capital finance international.
2014: winner of best domestic private bank and best private bank of India by Asia money
poll of polls.

14

2013: It is recognised as one of the top 10 performers in equity segment by BSE and also got
award of best private bank in India in Asia money private banking polls.
2012: In ET Star mine awards the Anand rathi selected as 1st in stock picker, 1st in overall
stock picker, and 1st in stock picker- consumer category.

MILE STONES:

In 1994 company was started by Mr. Pradeep Gupta and Mr. Anand Rathi

In 1995 set up a research deck.

In 1999 started retail broking services.

In 2001 started wealth management services.

In 2003 introduced real estate services and commodities brokerage.

In 2005 Real estate private equity launched.

In 2007 citi group venture capitalists joined as a financial partner.

In 2014 it became best domestic private bank in India.

ACQUISITIONS:
By Anzgrindlay

: $1.34bn from august 2000.

By Hong Kong consumer bank

: $1.32bn

By Thailand nakornthan bank

: $320 million

By Indonesia bank per-mata

: $366 million from October 2004.

By Korea First Bank

: $ 3.3 billion from Apr. 2005.

2.2.9 FUTURE PROSPECTS AND GROWTH:

The Indian economy is growing very quickly and it helps to increase in the investment.
The shares are offerings to public in near future.
By client centric approach creating good faith with the clients than other competitors.

15

 To establish new branches to serve affluent and aggressive traders through highly
skilled financial advisors.
The customers being served through central call or web solutions.
To render best financial services by upgrading the servicing process.
New initiatives in portfolio management services and commodities trading.
To be a lead manager for many forth coming IPO issues.
To extend the wings of customer care desk.
To increase the client base from existing.

2.2.10 SWOT ANALYSIS:

SWOT analysis is a tool used by the companies to know about their strength, weakness,
opportunities and threats. It is used to assess an industry and to develop strategies to be
competitive in industry. It helps the firm to achieve its objectives and to minimise the
obstacles to achieve required results. It is used as a business concept since 1960.
Strengths:
It is very consistent in growth performance and profitability.
The company follows rotation of employees, this helps the staff always be ready to
replace others.
The company is very much accessible to clients because it has more than 400
branches all over the world.
It is customer centric in its operations.
It has other products like general insurance, life insurance and mutual fund.
They have qualified and technical experts.
It is one of the Indias leading broking house.
Online and offline trading facility
Weakness:
The charges of Anand Rathi are high.
The company does not have its own product.
The SEBI rules are strict and severe.
Due to competition the profit is declined.

16

Opportunities:
The company can increase the awareness among the clients and increase the business.
The company can come up with new products and services.
There are opportunities to tap the FOREX market.
Opportunities for the expansion and additional capital investment.
In Indian economy the financial sectors are in boom stage, this is the advantage to
broking house.
Threats:
Many new brokers entering the field.
Nowadays the banks are providing mutual funds services along with their regular
services.
Changing of the government policies.
Price war between the competitors.

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CHAPTER - 3
THEORITICAL BACKROUND OF THE STUDY
3.1 MUTUAL FUND:
A mutual fund is a organization or a trust which accepts the savings by many investors who is
having a common financial goal. The collected money are invested in capital market
instruments like debenture, shares and others securities. The incomes gained from the mutual
funds are shared by all the investors or mutual fund holders. It is best investment for common
man because it gives an opportunity to invest in a variety of securities which is professionally
managed by the organization. The cost of investing in mutual fund is low compared to
directly investing in shares.

3.2 WORKING OF MUTUAL FUND:

Investors

Fund
manager

Returns

Securities

Step1: the investor will give his money to fund manager.

Step2: The fund manager invests the collected money into securities.
Step3: by investing in securities fund manager gets returns.

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Step4: The returns are distributed to mutual fund holders in the proportion of units owned by
the investors.

3.3 THE IMPORTANT TERMS OF MUTUAL FUNDS:

Fund Sponsor:
It is a corporate or body which originate the mutual funds. It is body or company acting
individually or combining with another body which is established to set up and to complete
the formalities to launch a mutual fund.

Trust:
Mutual fund trusts are managed by a trust company or by the board of Trustees. A Trust
Company is a body of individuals or corporate body which manages the mutual funds. The
board of trustees in India manages the majority of the mutual funds. The portfolio of
securities is not directly managed by the trustees. The portfolios are managed by AMC (asset
management companies) as per the SEBI mutual funds regulations.

Asset Management Company (AMC)

The asset management company is appointed by the trustees and it is approved by SEBI, the
AMC functions under the direction of the SEBI and trustees. SEBI act as a investment
manager to the trust. The board of directors will supervise the AMC. On behalf of trust the
AMC manages investment schemes according to SEBI regulations.

OTHER
Other than the above some constituents involved in some funds such as depositors and
custodians, banks transfer and distributors.
The custodian helps in safe keeping and safe guarding of securities, the bankers helps in the
financial dealings of the fund. The agents help in redemption and issues of units of mutual
funds.

3.4 RISK RETURN TRADE OFF:

It means if investor is ready to take high risk then the investor can expect high returns and
vice versa. Because high risk securities will give high returns. If the investor wanted to invest
in low risk instruments the investor will get low returns. For instance: if an investor invests in
19

bank fixed deposit, the investor will get reasonable return with minimum risk but when the
investor selects the capital market the investor may get more return than the bank but it is
more risk than the bank.

The investors prefer to invest in mutual funds because it provide various facilities like
diversification, liquidity, professional management and convenience. The mutual funds
investments are not risk free investments but the money collected in mutual funds are
invested not only in the less riskier fund like debt fund but also invest in the stock market.
The stock markets are the high risk investments but one can expects higher returns.

3.5 HISTORY OF INDIAN MURUAL FUNDS INDUSTRY

The government of India and reserve bank initiated to start mutual fund industry in 1963 and
formed unit of trust of India. The history of mutual funds can be explained to four stages.
In 1963 The RBI (Reserve bank of India) and Government of India initiated to start mutual
fund industry and formed unit trust of India. The history can be explained by four stages.

FIRST PHASE FROM 1964 TO 1987

In 1963 The Reserve bank of India established united trust of India (UTI) by the act of
parliament, before 1978 UTI functions under the regulatory and administrative control of RBI
afterward IDBI took over administrative and regulatory control. In 1964 UTI launched unit
scheme which is first scheme of UTI.

SECOND PHASE FROM 1987 TO 1993

It is the period where the non- UTI, public sector funds entered into mutual funds. The LIC
(life insurance corporation and GIC (General insurance corporation) started public sector
mutual fund. The first non UTI mutual fund is SBI mutual fund which was established in
June 1987 and the second is Can bank mutual fund later GIC, Punjab national banks, Indian
bank, bank of Baroda, bank of India and LIC had set up its mutual funds.

THIRD PHASE FROM 1993 TO 2013

In 1993 new era in mutual fund started this is the time where the private sector funds entered
into mutual fund industry. The private sector funds helped the investors to get a wide range of
funds. Erstwhile Kothari Pioneer is the first private sector mutual fund registered in July

20

1993. The mutual fund regulations are started in 1993 in which except UTI every fund should
be governed and registered.
The 1993 mutual fund Industry was functioning under the SEBI Mutual Fund Regulations. In
this stage the mutual funds are increased many foreign mutual funds was set up and also lot
of mergers and acquisitions were happened in 1993, At the end of 2003 the 33 mutual funds
has the total assets of Rs 1,21,805 cores.

FOURTH PHASE FROM February 2003

The UTI (Unit trust of India) divided into two separate entities in 2003:

The first one is specified undertaking of unit trust of India. it is functioning by the
rules and regulations set by government of India. It has the assets under management
of Rs 29,835 crores at the end of 2003.

The Second one is UTI mutual funds limited. It is sponsored by SBI, PNB, BOB and
LIC and it is registered with SEBI. It functions under the mutual fund regulations. At
the end of 2004 the UTI mutual fund ltd has 29 funds and they manage 421 schemes
which have assets of 153108 cores.

3.6 BENEFITS OF MUTUAL FUNDS:

Professional Management: Mutual Funds offer the variety of services to the

investors. The experts and the skilled professionals analyses the performance of
companies and selects suitable investment to investors.

Diversification Mutual funds helps the investors to diversify the money by investing
in a more number of companies of various industries and sectors. The diversification
of investment helps the investor to reduce the risk because all the industry will not fall
at the same time. One can diversify their investment with low cost by investing in
mutual funds.

Return potential: The potential of returns in mutual fund is high because mutual
funds are invested in securities which are performing well.

Liquidity: liquidity means the case to convert the mutual funds into cash, In closed
end schemes the mutual funds can be sold in the stock exchanges at market price in
case of open ended schemes the net asset value of the funds are returned to the
investors.
21

Low Costs: Mutual funds are costs less to invest compared to directly investing in
capital market. The custodial, brokerage and other fees are less when compared to
directly investing in capital market.

Transparency: The mutual fund gives information about how much invested and the
proportion invested. Is also discloses all the matters which are related to the mutual
fund schemes.

Flexibility: The investors can invest in a series of schemes like regular withdrawal
plans, regular investment plans and dividend reinvestment plan so the investor can
switch to another company stocks according to needs and convenience.

Choice of schemes: Mutual Funds provide a variety of schemes. One can invest in
the scheme which satisfies his needs and objectives.

Affordability: The mutual fund helps small investors to invest in high grade stocks
with less investment who finds difficult to invest in high rating stocks.

Well Regulated: all mutual funds are well regulated and are registered with SEBI and
all mutual funds follows the rules and regulations of SEBI. The mutual funds follow
strict regulations which are designed to protect interest of investors. The SEBI
monitors the operations of mutual funds.

3.7 TYPES OF MUTUAL FUNDS

There is a lot of mutual fund schemes are offered to the investors. There are more than 100
schemes to the investors. The mutual fund divided by following ways:

On the basis:

BY STRUCTURE

Open-ended funds

This type of fund does not have fixed maturity period and the main feature of this fund is
liquidity. It can be subscribed all through the year. The investors trade this type of fund at
NAV (net asset value).

22

Closed ended Funds

This type of funds can be subscribed only during certain period. It has a maturity
period ranging from 3 to 15 years. At the time of initial issue the investor can
subscribe the share after that they can trade the schemes on stock exchanges. This
scheme has a route to exit, these funds has an option of selling back to mutual fund
companies at NAV.

Interval funds
These funds have both the feature of close ended and open ended schemes. These
funds can buy and sell in the stock exchange and it is also has an option of redemption
of fund at NAV related price.

BY NATURE

Equity funds: These type of funds invest maximum part of collected money into
equity related instruments or equity holdings. It may show loss because of fluctuation
of share prices, however the fluctuations will not affect in the long term. Historically
equity funds are performed well in the long term so to take good returns one should
invest in equity funds for a longer period time at least for 3 to 5 years.
Equity funds are divided into:
Index funds: It is a type of equity fund in which the portfolios of securities
are constructed to match the market index like S & P index 500. It has low
operating expenses, low portfolio turnover and broad market exposure.
Equity diversified funds: This is the type of equity fund which 100 percent
of the capital is invested in the equity shares of different sectors to reduce the
risk of the fund. The diversification of the fund helps to reduce risk because all
sectors does not affect at a time. It has less chances of huge loss.
Large-cap equity funds: It is a type of equity fund which invests a major
portion of their collected money into the companies which has large market
capitalization. These funds offer sustainable and stability returns over a period

23

of time. Large market capitalization companies are companies whose market

capital is more than $10bilion.
It is a type of equity funds which the fund is invested in the stocks of mid size
companies which are still developing companies.
Mid cap Equity funds; It is a type of equity fund in which the funds is
invested in the stocks of mid size companies which are still developing
companies mid-sized firm are generally ranging from $2 billion to $10 billion
in market capital.
Sector funds; In this type of mutual fund the whole money which is collected
are invested in the business that operates in the same sector or in the same
industry. There is no advantage of diversification in this fund.
ELSS: Equity linked savings schemes are the fund which has tax benefits for
HUF and individuals under the income tax act of 1961, According to section
80c up to Rs 1 lakh investment in ELSS equity fund is exempted from tax.

Debt fund: In this type of equity fund the whole money which is collected are
invested in the debt instruments. It invests mainly in fixed income instruments like
government of Indian securities, bonds, debentures and money market instruments
such as commercial paper, certificate of deposit and call money. It is a low risk
investment and gives stable income to investors.
It is further divided into:
Gilt Funds: This type of funds invests the collected money in the securities
like government of India debt papers which is issued by government. This
fund does not have risk but it is associated with interest rate risk. This scheme
is the safest schemes among all.
Income funds: These types of funds invest their major collected money into
various debt instruments like corporate debentures, bonds and government
securities.

24

 MIPs: these funds invest their maximum corpus in debt instruments and they
invest minimum corpus in equities. The fund gets benefit of both equity and
debt market. These funds rank high on risk return matrix when compared to
other debt schemes.
These funds invest both in equity and debt instruments. The minimum portion
of collected money is invested in equities and maximum in debt instruments.
Short term plans (STP): These funds are invested in the short term papers
like commercial paper and certificate of deposits and a small portion in
corporate debentures. The time period is normally 3 to 6 months.
Liquid funds: these funds also called as money market schemes. These funds
provide liquidity and preservation of capital. These funds invests in the short
term instruments like treasury bills, inter-bank call money market, CPs and
CDs these funds invests for a period of 1 day to 3 months. These funds main
feature is liquidity which means it is easy to convert into easy. These funds
normally invest in money market instruments such as certificate of deposits
and commercial papers. The time period is normally 1 day to 3 months.

Balance fund: these funds are combination of both debt and equity funds as the name
suggests in invests in mix with equities and fixed income securities. The investment in
equity helps in the growth and the investment in the debts helps to get stability of
returns.

BY INVESTMENT OBJECTIVE

Growth schemes: These funds are also named as equity schemes. The major part of
collected money is invested in equities. The main aim is to provide the capital
appreciation to the investors for medium or long term investment.

Income schemes: These schemes are also named as debt schemes. It invests the
collected money into the fixed income securities like debentures and bonds. The main

25

aim is to provide regular and steady income to the investors. The capital appreciation
is limited.

Balanced schemes: These funds invest their collected money in both fixed income
securities as well as shares in the proportion 50:50. The main aim is to provide
income and growth. In this scheme the incomes are earned periodically.

Money market scheme: These funds invest the collected money into short term
instruments or money market instruments like certificate of deposit, treasury bills,
commercial paper and inter-bank call money. The main aim of these funds is to
provide liquidity.

3.8 FUTURE OF MUTUAL FUNDS IN INDIA:

Indian mutual fund industry has reached Rs. 2,57,499 at the end of march 2006. During the
rest of decade the expected growth is 13.4%.According to the current growth rate the assets
of the mutual fund will be doubled. The total assets of all scheduled commercial banks
expected to be Rs. 40,90,000. Mutual funds are the best investment because it earns high
returns with reasonable safety. The both small and big investors can invest in mutual funds
that suited to their needs and objectives. The debt and equity funds are attracted investments
but from last one year the performance of equity funds are disappointing the investors.
As The recent survey by price water house coopers indicates mutual funds are not just
responsible for mismanaging their risks and also indicates not giving necessary information
to the investors regarding facing of risk which results in an agitated investor may change his
investments to other avenues. Hence it is decided to educate the investors for the mutual
benefit. Safe avenues such as debt funds are generated by banks and the debt funds are the
safe investments. It cannot be comparable the inflow of funds in banks and debt funds. The
lack of understanding is the main factor contributing to the above cause which is caused by
intermediarys improper guidance. One of the issues by the industry is investors education,
so far it has been cared less. The main intentions of the industries are not to think of why the
person wanted to invest and on what he wants to invest but keeping their eyes on the amount
he invests. Of course it was not there in the cards to educate compulsorily the investors but
we have to change the things regarding the investors. "it requires 3 years to educate an
investor is the big lie which is used to utilize the unclaimed money as the income by the
26

funds" a certification programme has started for the intermediaries by AMFI which is
mandatory for them and the risks to be faced by the investors which were involved in the
scheme on which investor going invest is the main aim of AMFI and also to help the
investors on what he is going to invest and to choose the right fund .even though the investors
are ready to invest but due to lack of picking the right fund they are to be educated regarding
the how to choose fund. It is not only their guilty but also the duty of industry to guide them
in the every step of investment.
If the industry ignores the above matter they have to pay for the aspect associated with the
industry.
Investors are not only important for the industries but also for the mutual funds .It is the right
of every investor to ask the questions regarding the funds as per their risk bearing capacity.
As per the investors need it is most important to educate the investor to pick the schemes
which help them to accomplish their financial objectives.
If the investors are educated well in advance then the risks to be faced after the investment by
the investors can be overcome and can make the investors to invest faithfully on the industry
and the investor education is the only key for mutual fund which helps to run the same
investor for a long period in the same industry .it also results in educating the intermediaries.

3.9 FREQUENTLY USED TERMS IN MUTUAL FUNDS

NET ASSET VALUE (NAV)
NAV is the difference between the market value of the asset and the liabilities of the scheme.
The NAV is calculated as net asset value of the scheme divided by the number of units
outstanding on the valuation date.

REPURCHASE PRICE:
Repurchase price is a price at which the mutual fund schemes are repurchased by the mutual
fund companies. Normally it is purchased in NAV of the scheme.

SALE PRICE:
It is the price in which one can buy the mutual fund. It is also called as offer price. The sales
load also included in sale price.

27

SALES LOAD:
At the time of selling the charge is collected by a scheme called as front end load. If there is
no charge is called as no load scheme.

REDEMPTION PRICE:
It is the price in which the mutual funds are redeemed. The mutual funds are redeemed on
their units on maturity in closed ended schemes.

3.10 DISADVANTAGE OF MUTUAL FUND:

High Expense Ratios and Sales Charges In mutual fund there is expense ratio which
is higher than 1.20% and it also has advertising fees and sales charges in general.

Professional management: Some funds are not dynamic enough to explore

opportunity in the market due to lack professional management.

Cost-at the time of purchase the entry and exit load is high.

Dilution the funds have only small holdings in different companies. The funds get
high returns only from a few investments and it does not make much different on the
overall return.

28

CHAPTER - 4

DATA ANALYSIS AND INTERPRETATION

4.1 OPERATIONAL DEFINATIONS OF THE CONCEPTS
4.1.1 NET ASSET VALUE (NAV)
The amount which is collected by selling all the assets in the fund when it is dissolved or
liquidated is given to the shareholders. This amount is known as NAV. The performances of
mutual fund schemes are denoted by NAV. The NAV varies on day to day basis. The money
collected by selling all the assets of fund, this money are given to the share holders that
amount is called NAV. It is calculated by dividing the net asset value of the fund by the
number of units outstanding.
Calculation of Net Asset Value
Market value of investments
Net asset value =
No. of units outstanding

The important part in calculation of NAV is The valuation of the assets owned by the fund.
Once it is calculated it is easy to determine NAV. The complete method for the calculation
of the net asset value is:
NAV = current assets and other assets + market value of investments+ accrued
income- accrued expenses current liabilities and other liabilities.

4.1.2 RETURN
Returns are the amount of revenue generated by an investment over a period of time.
Total return is calculated by:
R= income + (-) price appreciation or depreciation

29

CALCULATION OF HISTORICAL RETURN

(End period NAV- beginning period NAV)

R=
Beginning period NAV

4.1.3 REQUIRED RATE OF RETURN

In valuing the asset the calculation of rate of return is significant and it is also important in
both real and financial investment decisions. The minimum expected rate of return which is
needed to promote the investor to purchase the security is called as required rate of return.
Required rate of return = risk free rate of return + risk premium

4.1.4 RISK
Risk is defines as the probability that the actual returns or outcomes of investment different
from the expected outcome or return of investment. It also refers to variability or dispersion.
If return of the assets has no variability or dispersion then it has less risk. To measure the risk
of the portfolio there is various ways the commonly used to measure the risk are :
1. Variance
2. Beta
STANDARD DEVIATION AND VARIANCE
Standard deviation ( ) is a statistical tool to measure the dispersion or the deviation from the
mean. This is used by investors to measure the risk involved in the investments. It is widely
used to determine unsystematic risk.
Formula:

30

VARIANCE: variance is nothing but the square of standard deviation (

) and it is used to

measure the risk.

Formula
(X-X)2
2

N-1
Where:
X : return of stock
X : arithmetic mean of the return

2 : variance of the return

N : number of periods

BETA:
Beta is measure of Systematic Risk. It measures the sensitivity of the stock. In other words it
is the sensitivity of a security to the market movements. The beta measure is mostly accepted
measure in the world.
Beta of a portfolio can be calculated as
Beta () = COV (ri,rm )/Variance of Market
Where
Rm= return of the market M
Ri= return of the portfolio

(Ri-Ri)(Rm-Rm)
COV(Ri,Rm) =
(N-1)
31

(Rm-Rm)2
2

Variance of market: =
(N-1)
Where:
Ri : return of portfolio A
Ri: average rate of return of portfolio A
Rm: return of market
Rm: Average rate of return of market.
N: number of periods

4.1.5 SHARPES RATIO:

Sharpes ratio is developed by Sharpe in 1966 and it is denoted by S. It gives a single value
based on the single value the mutual funds can be ranked. It also called as the reward to
variability ratio. Sharpes ratio is mainly focus on the standard deviation which is used as the
measure of risk.
Sharpes ratio is calculated by:

Rp - Rf
Sharpes ratio (S)=

p
Rp : average rate of return of portfolio A
Rf: Average rate of return on a risk free
investment

p: standard deviation of return of portfolio A

32

4.1.6 TREYNORS RATIO:

Treynors ratio is called as the reward to volatility ratio. The Treynor considers portfolio beta
as the measure of risk. According to Treynors assumption the unsystematic risk can be
minimised by holding a diversified portfolio by the investor. The Treynors ratio is denoted
by T.
Formula for Treynors Ratio:

Rp Rf
T=
p
Rp : average rate of return of portfolio A
Rf: Average rate of return on a risk free investment
p: beta of portfolio A

4.1.7 JENSENS RATIO:

It is also known as risk adjusted return measure Jensen. The Jensen tried to construct a
measure of absolute performance on a risk adjusted basis. It is a measure of absolute
performance because a defined standard is set and against that standard the performance is
measured.
Formula for Jensen Ratio:

Jensen Ratio p

= Rp - [Rf + a(Rm-Rf)]

Where:

Rp : average rate of return of portfolio A

Rf : Average rate of return on a risk free investment
33

a : beta of portfolio A
Rm: average rate of return of market.

4.2 DIVERSIFIED EQUITY FUNDS:

4.2.1 TABLE SHOWING THE RETURNS OF DIVERSIFIED EQUITY FUNDS AND
BSE SENSEX:
UTI

ICICI
RETURNS NAV

BSE

Date

NAV

RETURNS SENSEX

Jan-11

56.4

Feb-11

54.05

-4.167%

105.26

-3.564%

17823.4

-2.752%

Mar-11

58.13

7.549%

115.89

10.099%

19445.22

9.099%

Apr-11

60.78

4.559%

114.91

-0.846%

19135.96

-1.590%

May-11

60.68

-0.165%

111.75

-2.750%

18503.28

-3.306%

Jun-11

62.52

3.032%

112.5

0.671%

18845.87

1.852%

Jul-11

64.05

2.447%

109.75

-2.444%

18197.2

-3.442%

Aug-11

60.59

-5.402%

99.67

-9.185%

16676.75

-8.355%

Sep-11

61.21

1.023%

98.64

-1.033%

16453.76

-1.337%

Oct-11

61.8

0.964%

104.76

6.204%

17705.01

7.605%

Nov-11

58.52

-5.307%

94.25

-10.032%

16123.46

-8.933%

Dec-11

56.75

-3.025%

89.1

-5.464%

15454.92

-4.146%

Jan-12

60.56

6.714%

101.79

14.242%

17193.55

11.250%

Feb-12

64.57

6.622%

106.94

5.059%

17752.68

3.252%

Mar-12

67.48

4.507%

105.63

-1.225%

17404.2

-1.963%

109.15

34

RETURNS

18327.76

Apr-12

67.98

0.741%

104.29

-1.269%

17318.81

-0.491%

May-12

65.49

-3.663%

97.58

-6.434%

16218.53

-6.353%

Jun-12

66.64

1.756%

104.8

7.399%

17429.98

7.470%

Jul-12

66.03

-0.915%

105.28

0.458%

17236.18

-1.112%

Aug-12

67.59

2.363%

105.11

-0.161%

17429.56

1.122%

Sep-12

70.06

3.654%

114.65

9.076%

18762.74

7.649%

Oct-12

70.43

0.528%

113.99

-0.576%

18505.38

-1.372%

Nov-12

72.42

2.826%

119.46

4.799%

19339.9

4.510%

Dec-12

74.49

2.858%

121.65

1.833%

19426.71

0.449%

Jan-13

72.21

-3.061%

122.35

0.575%

19894.98

2.410%

Feb-13

68.54

-5.082%

114.4

-6.498%

18861.54

-5.194%

Mar-13

68.04

-0.730%

112.27

-1.862%

18835.77

-0.137%

Apr-13

72.62

6.731%

117.6

4.747%

19504.18

3.549%

May-13

76.21

4.944%

118.31

0.604%

19760.3

1.313%

Jun-13

73.03

-4.173%

115.61

-2.282%

19395.81

-1.845%

Jul-13

72.28

-1.027%

112.31

-2.854%

19345.7

-0.258%

Aug-13

69.32

-4.095%

109.22

-2.751%

18619.72

-3.753%

Sep-13

73.46

5.972%

113.99

4.367%

19379.77

4.082%

Oct-13

76.51

4.152%

124.73

9.422%

21164.52

9.209%

Nov-13

77.78

1.660%

124.08

-0.521%

20791.93

-1.760%

Dec-13

82.4

5.940%

129.46

4.336%

21170.68

1.822%

Jan-14

77.3

-6.189%

123.93

-4.272%

20513.85

-3.103%

Feb-14

78.65

1.746%

128.06

3.333%

21120.12

2.955%

35

Mar-14

86.93

10.528%

139.38

8.840%

22386.27

5.995%

Apr-14

86.11

-0.943%

140.34

0.689%

22417.8

0.141%

May-14

95.35

10.730%

156.09

11.223%

24217.34

8.027%

Jun-14

103.94

9.009%

168.49

7.944%

25413.78

4.940%

Jul-14

105.08

1.097%

169.71

0.724%

25894.97

1.893%

Aug-14

112.11

6.690%

176.04

3.730%

26638.11

2.870%

Sep-14

119.39

6.494%

180.55

2.562%

26630.51

-0.029%

Oct-14

122.86

2.906%

187.38

3.783%

27865.83

4.639%

Nov-14

132.41

7.773%

196.48

4.856%

28693.99

2.972%

Dec-14

134.27

1.405%

193.96

-1.283%

27499.42

-4.163%

Jan-15

143.48

6.859%

202.42

4.362%

29182.95

6.122%

Feb-15

148.55

3.534%

202.24

-0.089%

29361.5

0.612%

Mar-15

150.75

1.481%

198.24

-1.978%

27957.49

-4.782%

Apr-15

145.2

-3.682%

197

-0.626%

27011.31

-3.384%

May-15

150.52

3.664%

202.36

2.721%

27828.44

3.025%

Jun-15

150.35

-0.113%

200.72

-0.810%

27780.83

-0.171%

Jul-15

159.21

5.893%

209.52

4.384%

28114.56

1.201%

Aug-15

153.64

-3.499%

202.09

-3.546%

26283.09

-6.514%

Sep-15

151.55

-1.360%

201.46

-0.312%

26154.83

-0.488%

Oct-15

153.81

1.491%

205.25

1.881%

26656.83

1.919%

Nov-15

149.89

-2.549%

203.81

-0.702%

26145.67

-1.918%

Dec-15

151.26

0.914%

199.93

-1.904%

26117.54

-0.108%

36

4.2.2 TABLE SHOWING RISK, RETURN AND BETA OF DIVERSIFIED EQUITY

FUNDS:
UTI

MNC ICICI

FUND

Prudential

(UGS

multi cap BSE

10000)

fund

SENSEX

TOTAL RETURNS

105%

68%

41%

MEAN RETURN (X)

1.773%

1.147%

0.698%

SD ( )

4.24%

4.89%

4.44%

Rf

7.27%

7.27%

7.27%

BETA ()

0.689376534 1.044656

4.2.3 GRAPH SHOWING DIVERSIFIED EQUITY FUNDS:

6

4
SD
3

BETA
RETURNS(%)

0
UTI MNC FUND

ICICI Prudential multi cap fund

INTERPRETATION:

The above table 4.2.2 shows both the funds performance is better than the
market. The risk of ICICI prudential multi cap fund is high, but the returns are low
compared to UTI MNC fund so among both the funds UTI MNC is better as it
gives more returns for lower risk.
37

4.3 EQUITY LINKED SAVINGS SCHEME (ELSS)

4.3.1 TABLE SHOWING THE CALCULATION OF RETURNS OF EQUITY
LINKED SAVINGS SCHEME AND BSE SENSEX:
TATA

AXIS
RETURNS

NAV

BSE

Date

NAV

RETRNS

Jan-11

45.36

Feb-11

43.52

-4.06%

11.49

-3.12%

17823.4

-2.75%

Mar-11

46.91

7.79%

12.42

8.09%

19445.22

9.10%

Apr-11

47.44

1.13%

12.52

0.81%

19135.96

-1.59%

May-11

46.45

-2.09%

12.47

-0.40%

18503.28

-3.31%

Jun-11

46.98

1.14%

12.87

3.21%

18845.87

1.85%

Jul-11

46.56

-0.89%

12.84

-0.23%

18197.2

-3.44%

Aug-11

43.92

-5.67%

12.12

-5.61%

16676.75

-8.36%

Sep-11

43.42

-1.14%

11.98

-1.16%

16453.76

-1.34%

Oct-11

45.54

4.88%

12.61

5.26%

17705.01

7.60%

Nov-11

42.32

-7.07%

11.63

-7.77%

16123.46

-8.93%

Dec-11

38.69

-8.58%

11.08

-4.73%

15454.92

-4.15%

Jan-12

41.81

8.06%

12.04

8.66%

17193.55

11.25%

Feb-12

42.13

0.77%

12.51

3.90%

17752.68

3.25%

Mar-12

41.86

-0.64%

12.51

0.00%

17404.2

-1.96%

Apr-12

41.6

-0.62%

12.79

2.24%

17318.81

-0.49%

May-12

39.53

-4.98%

12.08

-5.55%

16218.53

-6.35%

Jun-12

41.68

5.44%

12.81

6.04%

17429.98

7.47%

Jul-12

42.16

1.15%

12.83

0.16%

17236.18

-1.11%

Aug-12

42.82

1.57%

13.13

2.34%

17429.56

1.12%

Sep-12

45.14

5.42%

14.25

8.53%

18762.74

7.65%

Oct-12

44.91

-0.51%

14.1

-1.05%

18505.38

-1.37%

Nov-12

47.29

5.30%

14.76

4.68%

19339.9

4.51%

Dec-12

46.06

-2.60%

14.81

0.34%

19426.71

0.45%

Jan-13

46.32

0.56%

14.7

-0.74%

19894.98

2.41%

Feb-13

43.93

-5.16%

14.07

-4.29%

18861.54

-5.19%

Mar-13

43.71

-0.50%

14.15

0.57%

18835.77

-0.14%

11.86

38

SENSEX

RETURNS

18327.76

Apr-13

44.75

2.38%

14.83

4.81%

19504.18

3.55%

May-13

45.59

1.88%

15.35

3.51%

19760.3

1.31%

Jun-13

44.96

-1.38%

14.84

-3.32%

19395.81

-1.84%

Jul-13

44.13

-1.85%

14.66

-1.21%

19345.7

-0.26%

Aug-13

42.5

-3.69%

14.05

-4.16%

18619.72

-3.75%

Sep-13

44.64

5.04%

14.72

4.77%

19379.77

4.08%

Oct-13

47.98

7.48%

16.14

9.65%

21164.52

9.21%

Nov-13

47.25

-1.52%

16.72

3.59%

20791.93

-1.76%

Dec-13

47.19

-0.13%

17.26

3.23%

21170.68

1.82%

Jan-14

45.92

-2.69%

16.78

-2.78%

20513.85

-3.10%

Feb-14

47.29

2.98%

17.78

5.96%

21120.12

2.96%

Mar-14

50.25

6.26%

19.17

7.82%

22386.27

5.99%

Apr-14

50.16

-0.18%

19.28

0.57%

22417.8

0.14%

May-14

55.32

10.29%

21.23

10.11%

24217.34

8.03%

Jun-14

59.66

7.85%

23

8.34%

25413.78

4.94%

Jul-14

60.68

1.71%

23.9

3.91%

25894.97

1.89%

Aug-14

62.85

3.58%

25.15

5.23%

26638.11

2.87%

Sep-14

65.13

3.63%

25.95

3.18%

26630.51

-0.03%

Oct-14

66.5

2.10%

27.09

4.39%

27865.83

4.64%

Nov-14

69.24

4.12%

28.34

4.61%

28693.99

2.97%

Dec-14

67.28

-2.83%

28.69

1.24%

27499.42

-4.16%

Jan-15

72.05

7.09%

30.43

6.06%

29182.95

6.12%

Feb-15

70.52

-2.12%

30.75

1.05%

29361.5

0.61%

Mar-15

70.21

-0.44%

31.06

1.01%

27957.49

-4.78%

Apr-15

66.98

-4.60%

30.01

-3.38%

27011.31

-3.38%

May-15

70.12

4.69%

30.9

2.97%

27828.44

3.03%

Jun-15

68.11

-2.87%

30.69

-0.68%

27780.83

-0.17%

Jul-15

72.19

5.99%

31.45

2.48%

28114.56

1.20%

Aug-15

69.42

-3.84%

30.76

-2.19%

26283.09

-6.51%

Sep-15

69.94

0.75%

30.61

-0.49%

26154.83

-0.49%

Oct-15

70.74

1.14%

30.93

1.05%

26656.83

1.92%

Nov-15

71.26

0.74%

30.11

-2.65%

26145.67

-1.92%

39

Dec-15

72.89

2.29%

30.61

1.66%

26117.54

-0.11%

4.3.2 TABLE SHOWING RISK, RETURN AND BETA OF ELSS EQUITY FUNDS:
TATA
INDIA

AXIS LONG

TAX

TERM

SAVING

EQUITY

BSE

FUND

FUND

SENSEX

TOTAL RETURNS

53%

101%

41%

MEAN RETURN (X)

0.890%

1.703%

0.698%

SD ( )

4.14%

4.15%

4.44%

Rf

7.27%

7.27%

7.27%

BETA ()

0.829833

0.84917

4.3.3 GRAPH SHOWING ELSS EQUITY FUNDS:

4.5
4
3.5
3
2.5

SD
BETA

RETURNS(%)
1.5
1
0.5
0
TATA India tax saving fund

AXIS long term equity fund

40

INTERPRETATION:

The above table 4.3.2 shows both the funds performance is better than the
market. The risk of Axis long term equity fund is high and returns also high
compared to Tata India tax saving fund. So among both funds Axis long term
equity fund is better as it gives more returns.

4.4 INDEX EQUITY FUNDS:

4.4.1 TABLE SHOWING THE RETURNS OF INDEX EQUITY FUNDS AND BSE
SENSEX

KOTAK

LIC

NIFTY

NOMURA
RETURNS

BSE

DATE

NAV

NAV

RETURNS

Jan-11

554.43

Feb-11

537.08

-3.13%

29.43

-3.10%

17823.4

-2.75%

Mar-11

587.3

9.35%

32.2

9.41%

19445.22

9.10%

Apr-11

578.82

-1.44%

31.73

-1.46%

19135.96

-1.59%

May-11

560.52

-3.16%

30.69

-3.28%

18503.28

-3.31%

Jun-11

571.78

2.01%

31.26

1.86%

18845.87

1.85%

Jul-11

555.82

-2.79%

30.39

-2.78%

18197.2

-3.44%

Aug-11

507.75

-8.65%

27.86

-8.33%

16676.75

-8.36%

Sep-11

502.06

-1.12%

27.56

-1.08%

16453.76

-1.34%

Oct-11

541.09

7.77%

29.62

7.47%

17705.01

7.60%

Nov-11

490.78

-9.30%

26.92

-9.12%

16123.46

-8.93%

Dec-11

469.5

-4.34%

25.78

-4.23%

15454.92

-4.15%

Jan-12

528.23

12.51%

28.9

12.10%

17193.55

11.25%

Feb-12

547.01

3.56%

29.89

3.43%

17752.68

3.25%

Mar-12

538.07

-1.63%

29.41

-1.61%

17404.2

-1.96%

Apr-12

532.97

-0.95%

29.12

-0.99%

17318.81

-0.49%

May-12

501.71

-5.87%

27.43

-5.80%

16218.53

-6.35%

30.37

SENSEX

RETURNS

18327.76

41

Jun-12

540.21

7.67%

29.46

7.40%

17429.98

7.47%

Jul-12

536.06

-0.77%

29.22

-0.81%

17236.18

-1.11%

Aug-12

539.73

0.68%

29.4

0.62%

17429.56

1.12%

Sep-12

585.39

8.46%

31.84

8.30%

18762.74

7.65%

Oct-12

576.89

-1.45%

31.36

-1.51%

18505.38

-1.37%

Nov-12

603.8

4.66%

32.78

4.53%

19339.9

4.51%

Dec-12

606.42

0.43%

32.91

0.40%

19426.71

0.45%

Jan-13

619.59

2.17%

33.55

1.94%

19894.98

2.41%

Feb-13

584.51

-5.66%

31.66

-5.63%

18861.54

-5.19%

Mar-13

583.82

-0.12%

31.6

-0.19%

18835.77

-0.14%

Apr-13

608.98

4.31%

32.95

4.27%

19504.18

3.55%

May-13

606.4

-0.42%

33.36

1.24%

19760.3

1.31%

Jun-13

593.2

-2.18%

32.6

-2.28%

19395.81

-1.84%

Jul-13

584.4

-1.48%

32.1

-1.53%

19345.7

-0.26%

Aug-13

557.2

-4.65%

30.58

-4.74%

18619.72

-3.75%

Sep-13

584.58

4.91%

32.01

4.68%

19379.77

4.08%

Oct-13

642.38

9.89%

35.13

9.75%

21164.52

9.21%

Nov-13

629.72

-1.97%

34.4

-2.08%

20791.93

-1.76%

Dec-13

642.79

2.08%

35.06

1.92%

21170.68

1.82%

Jan-14

610.56

-5.01%

33.86

-3.42%

20513.85

-3.10%

Feb-14

629.45

3.09%

34.87

2.98%

21120.12

2.96%

Mar-14

672.43

6.83%

37.19

6.65%

22386.27

5.99%

Apr-14

671.44

-0.15%

37.15

-0.11%

22417.8

0.14%

May-14

725.83

8.10%

40.05

7.81%

24217.34

8.03%

Jun-14

766.73

5.63%

42.32

5.67%

25413.78

4.94%

Jul-14

780.59

1.81%

43.05

1.72%

25894.97

1.89%

Aug-14

804.88

3.11%

44.34

3.00%

26638.11

2.87%

Sep-14

806.03

0.14%

44.36

0.05%

26630.51

-0.03%

Oct-14

842.69

4.55%

46.3

4.37%

27865.83

4.64%

Nov-14

859.78

2.03%

47.7

3.02%

28693.99

2.97%

Dec-14

829.11

-3.57%

45.95

-3.67%

27499.42

-4.16%

Jan-15

881.58

6.33%

48.8

6.20%

29182.95

6.12%

42

Feb-15

885.08

0.40%

48.95

0.31%

29361.5

0.61%

Mar-15

851.48

-3.80%

47.03

-3.92%

27957.49

-4.78%

Apr-15

820.32

-3.66%

45.3

-3.68%

27011.31

-3.38%

May-15

846.23

3.16%

46.68

3.05%

27828.44

3.03%

Jun-15

843.05

-0.38%

46.53

-0.32%

27780.83

-0.17%

Jul-15

861.94

2.24%

47.51

2.11%

28114.56

1.20%

Aug-15

805.75

-6.52%

44.38

-6.59%

26283.09

-6.51%

Sep-15

804.14

-0.20%

44.22

-0.36%

26154.83

-0.49%

Oct-15

816.96

1.59%

44.85

1.42%

26656.83

1.92%

Nov-15

803.92

-1.60%

44.08

-1.72%

26145.67

-1.92%

Dec-15

804.98

0.13%

44.07

-0.02%

26117.54

-0.11%

4.4.2 TABLE SHOWING RISK, RETURN AND BETA OF INDEX EQUITY FUNDS:
LIC NOMURA MF
KOTAK NIFTY INDEX FUND-

BSE

ETF

NIFTY

SENSEX

TOTAL RETURNS

43.66%

43.33%

41.20%

MEAN RETURN (X)

0.74%

0.734%

0.698%

SD ( )

4.67%

4.57%

4.444%

Rf

7.27%

7.27%

7.27%

BETA ()

1.044151

1.024343

43

4.4.3 GRAPH SHOWING INDEX EQUITY FUNDS

5
4.5
4

3.5
3
SD

2.5

BETA

RETURN(%)

1.5
1
0.5
0
KOTAK NIFTY ETF

LIC NOMURA MF INDEX FUNDNIFTY

INTERPRETATION:

The above table 4.4.2 shows both the funds performance is better than the
market. The risk of Kotak nifty ETF fund is high and the return is also slightly
high compared to LIC nomura index fund. So the performance of both the funds is
almost at par.

4.5 LARGE CAPITAL EQUITY FUNDS:

4.5.1 TABLE SHOWING THE RETURNS OF LARGE CAPITAL EQUITY FUNDS
AND BSE SENSEX
FRANKLIN

SBI
RETURNS

BSE

DATE

NAV

NAV

RETURNS

Jan-11

30.62

Feb-11

29.39

-4.02%

13.37

-4.98%

17823.4

-2.75%

Mar-11

31.67

7.76%

14.56

8.90%

19445.22

9.10%

Apr-11

31.32

-1.11%

14.62

0.41%

19135.96

-1.59%

May-11

30.82

-1.60%

14.27

-2.39%

18503.28

-3.31%

Jun-11

31.21

1.27%

14.34

0.49%

18845.87

1.85%

14.07

44

SENSEX

RETURNS

18327.76

Jul-11

30.78

-1.38%

14.15

-1.32%

18197.2

-3.44%

Aug-11

28.59

-7.12%

13.04

-7.84%

16676.75

-8.36%

Sep-11

28.02

-1.99%

12.77

-2.07%

16453.76

-1.34%

Oct-11

29.58

5.57%

13.44

5.25%

17705.01

7.60%

Nov-11

27.19

-8.08%

12.53

-6.77%

16123.46

-8.93%

Dec-11

25.99

-4.41%

11.98

-4.39%

15454.92

-4.15%

Jan-12

28.76

10.66%

13.25

10.60%

17193.55

11.25%

Feb-12

29.8

3.62%

13.82

4.30%

17752.68

3.25%

Mar-12

29.3

-1.68%

13.78

-0.29%

17404.2

-1.96%

Apr-12

28.98

-1.09%

13.79

0.07%

17318.81

-0.49%

May-12

27.17

-6.25%

13.2

-4.28%

16218.53

-6.35%

Jun-12

28.82

6.07%

13.94

5.61%

17429.98

7.47%

Jul-12

28.68

-0.49%

14.16

1.58%

17236.18

-1.11%

Aug-12

28.86

0.63%

14.49

2.33%

17429.56

1.12%

Sep-12

31.14

7.90%

15.46

6.69%

18762.74

7.65%

Oct-12

30.67

-1.51%

15.53

0.45%

18505.38

-1.37%

Nov-12

32.57

6.19%

16.34

5.22%

19339.9

4.51%

Dec-12

33.14

1.75%

16.56

1.35%

19426.71

0.45%

Jan-13

33.26

0.36%

16.87

1.87%

19894.98

2.41%

Feb-13

30.88

-7.16%

16.16

-4.21%

18861.54

-5.19%

Mar-13

30.3

-1.88%

16.14

-0.12%

18835.77

-0.14%

Apr-13

31.46

3.83%

16.72

3.59%

19504.18

3.55%

May-13

31.68

0.70%

16.78

0.36%

19760.3

1.31%

Jun-13

31.06

-1.96%

16.22

-3.34%

19395.81

-1.84%

Jul-13

29.83

-3.96%

15.81

-2.53%

19345.7

-0.26%

Aug-13

28.09

-5.83%

15.02

-5.00%

18619.72

-3.75%

Sep-13

29.93

6.55%

15.95

6.19%

19379.77

4.08%

Oct-13

33.07

10.49%

17.48

9.59%

21164.52

9.21%

Nov-13

33.1

0.09%

17.31

-0.97%

20791.93

-1.76%

Dec-13

33.85

2.27%

17.81

2.89%

21170.68

1.82%

Jan-14

32.48

-4.05%

17.54

-1.52%

20513.85

-3.10%

Feb-14

33.59

3.42%

18.11

3.25%

21120.12

2.96%

45

Mar-14

36.72

9.32%

19.13

5.63%

22386.27

5.99%

Apr-14

37.01

0.79%

19.18

0.26%

22417.8

0.14%

May-14

40.73

10.05%

20.92

9.07%

24217.34

8.03%

Jun-14

43.47

6.73%

22.5

7.55%

25413.78

4.94%

Jul-14

44.33

1.98%

22.99

2.18%

25894.97

1.89%

Aug-14

47.22

6.52%

24

4.39%

26638.11

2.87%

Sep-14

48.22

2.12%

24.67

2.79%

26630.51

-0.03%

Oct-14

51.3

6.39%

25.32

2.63%

27865.83

4.64%

Nov-14

53.98

5.22%

26.54

4.82%

28693.99

2.97%

Dec-14

53.67

-0.57%

26.33

-0.79%

27499.42

-4.16%

Jan-15

57.62

7.36%

27.98

6.27%

29182.95

6.12%

Feb-15

57.98

0.62%

28.36

1.36%

29361.5

0.61%

Mar-15

57.88

-0.17%

28.37

0.04%

27957.49

-4.78%

Apr-15

55.67

-3.82%

27.55

-2.89%

27011.31

-3.38%

May-15

57.95

4.10%

28.29

2.69%

27828.44

3.03%

Jun-15

57.2

-1.29%

28.43

0.49%

27780.83

-0.17%

Jul-15

58.97

3.09%

29.33

3.17%

28114.56

1.20%

Aug-15

55.38

-6.09%

27.8

-5.22%

26283.09

-6.51%

Sep-15

55.34

-0.07%

27.76

-0.14%

26154.83

-0.49%

Oct-15

55.93

1.07%

28.25

1.77%

26656.83

1.92%

Nov-15

55.74

-0.34%

28.23

-0.07%

26145.67

-1.92%

Dec-15

54.91

-1.49%

28.44

0.74%

26117.54

-0.11%

46

4.5.2 TABLE SHOWING RISK, RETURN AND BETA OF LARGE CAPITAL

EQUITY FUNDS
FRANKLIN

SBI

INDIA

BLUE

OPPORTUNITIES CHIP

BSE

Column1

FUND

FUND

SENSEX

TOTAL RETURNS

65%

76%

41%

MEAN RETURN (X)

1.10%

1.28%

0.70%

SD ( )

4.73%

4.15%

4.44%

Rf

7.27%

7.27%

7.27%

BETA ()

0.999828569

0.880277

4.5.3 GRAPH SHOWING LARGE CAPITAL EQUITY FUNDS

5
4.5
4
3.5
3
SD

2.5

BETA

RETURNS(%)

1.5

1
0.5
0
FRANKLIN INDIA OPPORTUNITIES
FUND

SBI BLUE CHIP FUND

INTERPRETATION:

The above table 4.5.2 shows both the funds performance is better than the
market. The risk of Franklin India opportunities fund is high but the returns are
low compared to SBI blue chip fund. So among both the funds SBI blue chip fund
is better as it gives more returns for lower risk.
47

4.6 SECTOR EQUITY FUND

4.6.1 TABLE SHOWING THE RETURNS OF SECTOR EQUITY FUNDS AND BSE
SENSEX
ICICI(BFSI)

ICICI(TECH)
RETURNS

NAV

BSE

DATE

NAV

RETURNS

Jan-11

17.47

Feb-11

17.06

-2.35%

18.11

-5.28%

17823.4

-2.75%

Mar-11

19.16

12.31%

19.04

5.14%

19445.22

9.10%

Apr-11

18.79

-1.93%

18.28

-3.99%

19135.96

-1.59%

May-11

18.2

-3.14%

17.99

-1.59%

18503.28

-3.31%

Jun-11

18.43

1.26%

18.5

2.83%

18845.87

1.85%

Jul-11

18.24

-1.03%

17.53

-5.24%

18197.2

-3.44%

Aug-11

15.78

-13.49%

15

-14.43%

16676.75

-8.36%

Sep-11

15.7

-0.51%

15.53

3.53%

16453.76

-1.34%

Oct-11

16.51

5.16%

17.08

9.98%

17705.01

7.60%

Nov-11

14.4

-12.78%

16.33

-4.39%

16123.46

-8.93%

Dec-11

13.24

-8.06%

16.53

1.22%

15454.92

-4.15%

Jan-12

16.3

23.11%

17.07

3.27%

17193.55

11.25%

Feb-12

17.13

5.09%

18.62

9.08%

17752.68

3.25%

Mar-12

17.14

0.06%

18.56

-0.32%

17404.2

-1.96%

Apr-12

17.29

0.88%

18.36

-1.08%

17318.81

-0.49%

May-12

16.12

-6.77%

18.33

-0.16%

16218.53

-6.35%

Jun-12

17.59

9.12%

18.88

3.00%

17429.98

7.47%

Jul-12

18.03

2.50%

17.58

-6.89%

17236.18

-1.11%

Aug-12

17.78

-1.39%

18.65

6.09%

17429.56

1.12%

Sep-12

20.01

12.54%

19.58

4.99%

18762.74

7.65%

Oct-12

20.32

1.55%

18.88

-3.58%

18505.38

-1.37%

Nov-12

21.95

8.02%

19.53

3.44%

19339.9

4.51%

Dec-12

22.8

3.87%

19.36

-0.87%

19426.71

0.45%

Jan-13

22.91

0.48%

21.01

8.52%

19894.98

2.41%

Feb-13

20.93

-8.64%

21.38

1.76%

18861.54

-5.19%

Mar-13

20.6

-1.58%

21.33

-0.23%

18835.77

-0.14%

19.12

SENSEX

RETURNS

18327.76

48

Apr-13

22.1

7.28%

19.34

-9.33%

19504.18

3.55%

May-13

22.18

0.36%

19.66

1.65%

19760.3

1.31%

Jun-13

21

-5.32%

20.19

2.70%

19395.81

-1.84%

Jul-13

18.72

-10.86%

22.54

11.64%

19345.7

-0.26%

Aug-13

17.08

-8.76%

24.11

6.97%

18619.72

-3.75%

Sep-13

18.37

7.55%

25.06

3.94%

19379.77

4.08%

Oct-13

21.08

14.75%

27.98

11.65%

21164.52

9.21%

Nov-13

21.33

1.19%

28.89

3.25%

20791.93

-1.76%

Dec-13

22.2

4.08%

31.47

8.93%

21170.68

1.82%

Jan-14

19.82

-10.72%

32.06

1.87%

20513.85

-3.10%

Feb-14

20.49

3.38%

33.87

5.65%

21120.12

2.96%

Mar-14

23.97

16.98%

30.46

-10.07%

22386.27

5.99%

Apr-14

24.96

4.13%

30.34

-0.39%

22417.8

0.14%

May-14

28.9

15.79%

30.25

-0.30%

24217.34

8.03%

Jun-14

30.8

6.57%

33.31

10.12%

25413.78

4.94%

Jul-14

30.33

-1.53%

34.94

4.89%

25894.97

1.89%

Aug-14

31.2

2.87%

36.86

5.50%

26638.11

2.87%

Sep-14

31.43

0.74%

38.48

4.40%

26630.51

-0.03%

Oct-14

33.6

6.90%

38.75

0.70%

27865.83

4.64%

Nov-14

36.21

7.77%

41.18

6.27%

28693.99

2.97%

Dec-14

37.51

3.59%

39.76

-3.45%

27499.42

-4.16%

Jan-15

39.24

4.61%

41.74

4.98%

29182.95

6.12%

Feb-15

39.2

-0.10%

43.31

3.76%

29361.5

0.61%

Mar-15

36.45

-7.02%

40.51

-6.47%

27957.49

-4.78%

Apr-15

36.1

-0.96%

37.78

-6.74%

27011.31

-3.38%

May-15

37.54

3.99%

40.35

6.80%

27828.44

3.03%

Jun-15

37.09

-1.20%

38.57

-4.41%

27780.83

-0.17%

Jul-15

39

5.15%

41.57

7.78%

28114.56

1.20%

Aug-15

36.09

-7.46%

41.97

0.96%

26283.09

-6.51%

Sep-15

36.4

0.86%

42.83

2.05%

26154.83

-0.49%

Oct-15

35.55

-2.34%

42.32

-1.19%

26656.83

1.92%

Nov-15

35.85

0.84%

41.33

-2.34%

26145.67

-1.92%

49

Dec-15

34.8

-2.93%

41.33

0.00%

26117.54

-0.11%

4.6.2 TABLE SHOWING RISK, RETURN AND BETA OF SECTOR EQUITY FUNDS
ICICI
prudential

ICICI

banking

and prudential

financial

technology

BSE

services fund

fund

SENSEX

TOTAL RETURNS

85%

87%

41%

MEAN RETURN (X)

1.43%

1.47%

0.70%

SD ( )

7.33%

5.55%

4.44%

Rf

7.57%

7.57%

7.57%

BETA ()

1.44873888

0.590764183

4.6.3 GRAPH SHOWING SECTOR EQUITY FUNDS

8
7
6
5
SD

BETA
3

RETURNS(%)

2
1

0
ICICI prudential banking and financial
services fund

ICICI Prudential technology fund

50

INTERPRETATION:

The above table 4.6.2 shows both the funds performance is better than the
market. The risk of ICICI prudential banking and financial services fund is high
but the returns are low compared to ICCI prudential technology fund. So among
both the funds ICICI prudential technology fund is better as it gives more returns
for lower risk.

4.7 SMALL AND MID CAP EQUITY FUND:

4.7.1 TABLE SHOWING THE RETURNS OF SMALL AND MID CAP EQUITY
FUND AND BSE SENSEX
JP

MIRAE

BSE

MORGAN
Date

NAV

RETURNS

NAV

RETURNS

Jan-11

7.36

Feb-11

7.03

-4.48%

9.84

-3.34%

17823.4

-2.75%

Mar-11

7.61

8.25%

10.73

9.04%

19445.22

9.10%

Apr-11

7.83

2.89%

11.04

2.89%

19135.96

-1.59%

May-11

7.8

-0.38%

11.28

2.17%

18503.28

-3.31%

Jun-11

7.79

-0.13%

11.52

2.13%

18845.87

1.85%

Jul-11

8.01

2.82%

11.51

-0.09%

18197.2

-3.44%

Aug-11

7.34

-8.36%

10.77

-6.43%

16676.75

-8.36%

Sep-11

7.17

-2.32%

10.73

-0.37%

16453.76

-1.34%

Oct-11

7.34

2.37%

10.94

1.96%

17705.01

7.60%

Nov-11

6.76

-7.90%

10.31

-5.76%

16123.46

-8.93%

Dec-11

6.28

-7.10%

9.54

-7.47%

15454.92

-4.15%

Jan-12

7.01

11.62%

10.72

12.37%

17193.55

11.25%

Feb-12

7.4

5.56%

11.39

6.25%

17752.68

3.25%

Mar-12

7.57

2.30%

11.56

1.49%

17404.2

-1.96%

Apr-12

7.55

-0.26%

11.43

-1.12%

17318.81

-0.49%

May-12

7.3

-3.31%

10.96

-4.11%

16218.53

-6.35%

Jun-12

7.56

3.56%

11.47

4.65%

17429.98

7.47%

10.18

51

SENSEX

RETURNS

18327.76

Jul-12

7.55

-0.13%

11.46

-0.09%

17236.18

-1.11%

Aug-12

7.73

2.38%

11.81

3.05%

17429.56

1.12%

Sep-12

8.36

8.15%

12.85

8.81%

18762.74

7.65%

Oct-12

8.31

-0.60%

12.92

0.54%

18505.38

-1.37%

Nov-12

8.76

5.42%

13.33

3.17%

19339.9

4.51%

Dec-12

9.09

3.77%

13.9

4.28%

19426.71

0.45%

Jan-13

8.96

-1.43%

13.78

-0.86%

19894.98

2.41%

Feb-13

8.51

-5.02%

12.86

-6.68%

18861.54

-5.19%

Mar-13

8.31

-2.35%

12.68

-1.40%

18835.77

-0.14%

Apr-13

8.54

2.77%

13.17

3.86%

19504.18

3.55%

May-13

8.75

2.46%

13.26

0.68%

19760.3

1.31%

Jun-13

8.44

-3.54%

12.69

-4.30%

19395.81

-1.84%

Jul-13

8.09

-4.15%

12.18

-4.02%

19345.7

-0.26%

Aug-13

7.75

-4.20%

11.75

-3.53%

18619.72

-3.75%

Sep-13

8.27

6.71%

12.4

5.53%

19379.77

4.08%

Oct-13

8.9

7.62%

13.62

9.84%

21164.52

9.21%

Nov-13

9.09

2.13%

14.18

4.11%

20791.93

-1.76%

Dec-13

9.71

6.82%

15.09

6.42%

21170.68

1.82%

Jan-14

9.22

-5.05%

14.92

-1.13%

20513.85

-3.10%

Feb-14

9.67

4.88%

15.96

6.97%

21120.12

2.96%

Mar-14

10.67

10.34%

17.16

7.52%

22386.27

5.99%

Apr-14

10.83

1.50%

17.49

1.92%

22417.8

0.14%

May-14

13.02

20.22%

19.79

13.15%

24217.34

8.03%

Jun-14

14.33

10.06%

21.7

9.65%

25413.78

4.94%

Jul-14

14.07

-1.81%

21.87

0.78%

25894.97

1.89%

Aug-14

14.62

3.91%

23.22

6.17%

26638.11

2.87%

Sep-14

15.35

4.99%

24.87

7.11%

26630.51

-0.03%

Oct-14

16.05

4.56%

25.76

3.58%

27865.83

4.64%

Nov-14

17.36

8.16%

27

4.81%

28693.99

2.97%

Dec-14

17.8

2.53%

27.87

3.22%

27499.42

-4.16%

Jan-15

18.74

5.28%

29.25

4.95%

29182.95

6.12%

Feb-15

19.03

1.55%

29.29

0.14%

29361.5

0.61%

52

Mar-15

19.39

1.89%

29.24

-0.17%

27957.49

-4.78%

Apr-15

18.47

-4.74%

28.6

-2.19%

27011.31

-3.38%

May-15

19.36

4.82%

29.55

3.32%

27828.44

3.03%

Jun-15

19.29

-0.36%

29.9

1.18%

27780.83

-0.17%

Jul-15

20.45

6.01%

31.76

6.22%

28114.56

1.20%

Aug-15

19.58

-4.25%

30.33

-4.50%

26283.09

-6.51%

Sep-15

19.35

-1.17%

30.51

0.59%

26154.83

-0.49%

Oct-15

19.34

-0.05%

30.91

1.31%

26656.83

1.92%

Nov-15

19.39

0.26%

31.35

1.42%

26145.67

-1.92%

Dec-15

19.47

0.41%

31.79

1.40%

26117.54

-0.11%

4.7.2 TABLE SHOWING RISK, RETURN AND BETA OF SMALL AND MID CAP
EQUITY FUNDS
JP MORGAN

MIRAE Asset

India Mid and

emerging blue chip

small cap fund

fund

BSE SENSEX

TOTAL RETURNS

106%

121%

41%

MEAN RETURN (X)

1.79%

2.05%

0.70%

SD ( )

5.27%

4.66%

4.44%

Rf

7.27%

7.27%

7.27%

BETA ()

0.940673053

0.860871

53

4.7.3 GRAPH SHOWING SMALL AND MID CAP EQUITY FUNDS

5
4.5
4
3.5
3
SD

2.5

BETA

RETURNS(%)

1.5
1
0.5
0
JP morgan india mid and small cap
fund

MIRAE asset emerging blue chip fund

INTERPRETATION:

The above table 4.7.2 shows both the funds performance is better than the
market. The risk of J P Morgan India mid and small cap fund is high but the
returns are low compared to Mirae asset emerging blue chip fund. So among both
the funds Mirae asset emerging blue chip fund is better as it gives more returns for
lower risk.

54

TABLE 4.8 COMPARISON OF MUTUAL FUND USING INDICES

Mutual fund

SD

UTI-MNC

BETA RETU

MKT

SHARP TREYN

RNS

RETURN

OR

JENSON

4.24%

.689

1.77%

.698%

.4999

.01692

.01103

ICICI prudential multi 4.89%

1.04

1.14%

.698%

.1104

.0051

.0044

.849

1.70%

.698%

.2644

.0129

.0101

.829

.890%

.698%

.6877

.0034

.0020

1.044

.74%

.698%

.0286

.0012

.0003

1.02

.734%

.698%

.0281

.0012

.0003

.9998

1.10%

.698%

.1051

.0049

.0040

4.15%

.880

1.28%

.698%

.1633

.0076

.0059

emerging 4.66%

.860

2.05%

.698%

.2256

.0168

.0136

.9406

1.79%

.698%

.2256

.0126

.0110

1.44

1.43%

.698%

.1127

.0057

.0069

.590

1.47%

.698%

.1551

.0145

.0080

fund(UGS10000)

cap fund
Axis long term equity 4.15%
fund
Tata India tax saving 4.14%
fund
Kotak nifty ETF

4.67%

LIC nomura index fund- 4.57%

nifty
Franklin

India 4.73%

opportunities fund
SBI blue chip fund
Mirae

asset

blue chip fund

JP morgan India mid and 5.27%
small cap fund
ICICI prudential banking 7.33%
and

financial

services

fund
ICICI

prudential 4.44%

technology fund.

INTERPRETATION:
The above table 4.8 shows ICICI prudential banking and financial services fund has the
highest risk while the return is 1.43% and The Tata India tax saving fund has the minimum
risk among all. The Mirae asset emerging blue chip fund is giving highest return and LIC
Nomura index fund-nifty is giving lowest return among all. All selected equity funds are
55

performing better than the benchmark Sensex index and provides more return than the market
return. JP Morgan India mid and small cap fund is highly volatile to the market and ICICI
prudential technology fund is less volatility to market among all.
According to Sharpes the TATA India tax saving fund is performing well, according to
Treynors ratio UTI-MNC fund (UGS 10000) is performing well and according to Jensens
ratio Mirae asset emerging blue chip fund is performing well and the least in all the ratio is
LIC nomura index fund nifty.

TABLE 4.9 RANKING OF EQUITY MUTUAL FUNDS

SL.no MUTUAL FUNDS

SHARPE

TRENOR

JENSON

UTI-MNC fund(UGS10000)

ICICI prudential multi cap fund

Axis long term equity fund

Tata India tax saving fund

10

10

Kotak nifty ETF

11

11

11

LIC nomura index fund-nifty

12

12

12

Franklin India opportunities fund

10

SBI blue chip fund

Mirae asset emerging blue chip fund

10

JP morgan India mid and small cap 4

and 8

fund
11

ICICI

prudential

banking

financial services fund

12

ICICI prudential technology fund.

56

CHAPTER - 5

5.1 FINDINGS:

ICICI prudential banking and financial services fund has the highest risk and Tata
India tax saving fund has the lowest risk among all.

Mirae asset emerging blue chip fund has the highest return among all and LIC nomura
index fund-nifty has lower return among all.

It is observed that all the equity funds are performing better than the benchmark BSE
Sensex and provides more return than the market return.

According to Sharpes ratio Tata India tax saving fund has performed well and the
LIC nomura index fund-nifty is not performing well among all.

According to Treynors ratio UTI-mnc fund has performed well and the LIC nomura
index fund-nifty is not performing well among all.

According to Jensons alpha mirae asset emerging blue chip fund is performing well
and the LIC nomura index fund-nifty is not performing well among all.

Investment in equity funds are is more attractive because of the returns.

5.2 SUGGESIONS
The investors will opt mutual funds to invest because the mutual funds are less risky
compared to investment in equity directly.

ICICI prudential banking and financial services fund has the highest risk and also it
gives more return so it is best suitable for high risk taker.

Tata India tax saving fund has the low returns and the risk involved also low so it is
best suitable for low risk takers.

Franklin India opportunities fund has the average risk among all so it is best suitable
for the investors who want to take moderate risk.

UTI-MNC fund (UGS10000) is raked well among all three measures, it has very low
risk and the returns are more than market so this fund is good to invest.

57

5.3 CONCLUSION
The investment in mutual fund is a very good opportunity for the small investors and also
for common man. It offers an opportunity to invest in diversified and professionally
managed securities at a very low cost. Mutual fund is a diversified portfolio and investor
get an opportunity to invest in more equity shares which are selected through the asset
management company which will minimise risk and maximise return.
The investors should have knowledge about mutual fund before making any investment
decision. While investing in equity funds the returns as well as risk also should be taken
into account. The risk and return are related to each other. The investor should do careful
evaluation, analysis of market and performance evaluation before investing in the equity
funds.
Over all, all the selected equity funds have performed well during 2011 to 2015 and they
are outperforming the market.

58

BIBILOGRAPHY:
Books:
1. Prasanna Chandra, Investment analysis and portfolio management, 2 nd edition,2005.
2. Prasanna Chandra, Financial management, 8th Edition,2009.
Articles:
1. Ms Dhanalakshmi k (2013), A Comparative analysis on performance of SBI and
HDFC equity, balanced and gilt mutual fund vidyaniketan journal of management
and research vol.1 Issue-2 July December 2013.
2. Prof. Kalpesh p Prajapathi and Prof. Mahesh. K. Patel (2012) Comparative study on
performance evaluation of mutual fund schemes of Indian Companies International
refereed research Journal of Arts, Science & Commerce E-ISSN 2229-4686 ISSN
2231-4172 VOL-III, Issue3(3), July 2012 [47].
3. Sukhwinder Kaur Dhanda, Dr G.S. Batra and Dr. Bimal Anjum (2012).
Performance evaluation of selected open ended mutual funds in India. International
journal of marketing, financial services & management Research Vol.1 No.1, January
2012, ISSN 2277 3622.
4. Sharad Panwar and Dr. R. Madhumathi (2006) Characteristics and performance
evaluation of selected mutual funds in India. Indian institute of India, Madras.

WEBILOGRAPHY
1. https://www.rathi.com/
2. http://www.moneycontrol.com/mutual-funds/best-funds/equity.html
3. http://portal.amfiindia.com/NavHistoryReport_Frm.aspx
4. http://portal.amfiindia.com/NavHistoryReport_Frm.aspx

59

ANNEXTURE

60

61

62