STUDY ON RELATIONSHIP BETWEEN RISK AND RETURN OF

SELECTED EQUITY LINKED SAVING SCHEMES OF MUTUAL

FUNDS MARKETED AT KARVY PRIVATE WEALTH

CORPORATE INTERNSHIP PROGRAM PROJECT REPORT

SUBMITTED IN PARTIAL FULFILMENT OF PGDM PROGRAM 2015-17

Submitted By
Name: BHARAT NARULA
Roll No: 72
Company Mentor
Name: Mr. Rakshit Kumar
Designation: Associate Vice President
Company: Karvy Private Wealth,Delhi

Delhi

OBJECTIVE:
Study on Relationship between Risk and Return of Selected Equity Linked Saving Schemes of
Mutual Funds Marketed at Karvy Private Wealth.

Scope of the Project:

As the objective of the study is to analyse the risk adjusted return performance of the funds,
only Growth option plans are considered. The performance evaluation is based on the Net
Asset Value ( NAV ) of the fund units and therefore does not consider the costs if any, incurred
by the investor in the form of entry and exit loads and income tax on the gains.
Scope of the study is limited only to ELSS open ended schemes and study of certain
selected factors and its effect on retail investors in their investment on mutual funds,
analysing retail investors perception towards the mutual fund industry. And moreover
only those ELSS s c h e m e s o f v a r i o u s A M C a r e t a k e n i n t h i s s t u d y w h i c h
are featured in Crisil ratings as on 30 th June 2016 and have a track
r e c o r d o f m o r e t h a n 5 y e a r s . The study is limited to Delhi and NCR.

Methodology Used
RESEARCH DESIGN
This study is basically descriptive study where we are trying to study the investor
characteristics and performance of ELSS and diversified Mutual fund. To fulfill our first
objective we have tried to study the performance of ELSS mutual fund return. The second
objective is fulfilled by calculating and studying the 10 selected open ended mutual fund in
order to evaluate their risk and return. In the third objective 10 open ended diversified fund
has been chosen and compared with ELSS fund. The fourth objective is fulfilled by analyzing
the result of structured questionnaire.
TYPE OF DATA USED

Primary Primary data is the data which is the actual study that is been conducted
by the researcher. It is the data which is obtained by the direct efforts of the individual
who is conducting the study through surveys, direct observation, interviews, focus
group etc.

Secondary . It is the data which is easily available on the websites, books,

newspapers, magazines etc.

SOURCES OF DATA COLLECTION

Primary data is collected through structured questionnaire.

Secondary data is collected from different sources like Research papers , Mutual fund
Factsheet, , Websites, Karvy Report, Articles, etc.

SAMPLING METHODOLOGY
Systematic Random Sampling- It is a method of choosing a random sample from larger
population.
SAMPLE SIZE
55 Respondents
SAMPLING UNIT
Delhi NCR
STATISTICAL TOOLS AND TECHNIQUES USED

Excel
SPSS

HYPOTHESIS USED

Null hypothesis: The age of the investor and risk willingness are independent of each

other.
Null hypothesis: The age of the investor and expected return from the investment are

independent of each other.

Null hypothesis: The age of the investor and knowledge related to mutual funds are

independent of each other.

Null hypothesis: The age and gender of the investor are independent of each other.
Null hypothesis: Income of the individual investor and annual investment in a mutual
fund are independent of each other.

Limitations/Challenges Faced

a) Sample size of the study was limited to 55 only. The sample size may not represent the
whole market.
b) The study has not been conducted over an extended period of time considering both
market ups and downs. The market state has a significant influence on the buying
patterns and preferences of investors. The study cannot capture such situations.
c) The study is limited to the investors of Delhi and NCR. Therefore the inferences
cannot be generalized.
d) The study is limited to selected mutual fund scheme.
e) Time and money are factors limiting the study.

How did you overcome them?

a) In order to overcome the limitation the Random sampling was used so as to minimize
the error during SPSS analysis.
b) Only those mutual funds were selected that were ranked by Crisil ratings
c) We assumed that inference made on the sample will resemble the population.

Key learnings:

a)
b)
c)
d)

Various ratios used to calculate the performance of an ELSS mutual fund

Factors affecting the investment made by the clients in ELSS Mutual fund.
The reason behind the higher return by ELSS Fund than Diversified Mutual fund.
The future and opportunities in Mutual Fund Industry in the coming years.

Suggestions/Recommendations
a) It is found that majority of the schemes have performed very well immediately by their
launch. Hence, it is suggested to the Asset management companies, to adopt the
powerful marketing and better investment strategies to perform well in all the time.
b) It is found that there is a significant association between investment and demographic
features of respondents such as age, annual income, and occupation. Thus, it is
suggested that the Asset Management companies may launch the new Tax Saving
Mutual Fund Schemes with different benefits to attract the different category of
investors.
c) The retail investors may be divided into various groups so that right product shall be
served to the right customer

d) To increase the loyalty and trust among the investors, proper information and
knowledge should be provided to them.