COMPARATIVE STUDY ON AXIS MUTUAL FUND AND

KOTAK MAHINDRA MUTUAL FUND

Project submitted in partial fulfilment of the requirements for the Award of the Degree

MASTER OF BUSINESS ADMINISTRATION

OF

MYSORE UNIVERSITY

By

PERAVALI ASHOK

Registration no:17MB2274

Under the guidance of

PROF.SIDDANAGOUDA POLICEPATIL

Assisstant Professor

ACHARYA BANGALORE B SCHOOL

MYSORE UNIVERSITY

2018 – 2019

1
 DECLARATION BY THE STUDENT

I hereby declare that “COMPARATIVE ANALYSIS OF AXIS MUTUAL FUND AND

KOTAK MAHINDRA MUTUAL FUND” is the result of the project work carried out
by me under the guidance of PROF.SIDDANAGOUDA POLICEPATILin partial
fulfilment for the award of master’s degree in Business Administration by Mysore
University.

Place: Name: Peravali Ashok

Date: Register Number: 17MB2274

2
 CERTIFICATE OF ORIGINALITY

Date:

This is to certify that the dissertation titled “COMPARATIVE ANALYSIS OF AXIS

MUTUAL FUND AND KOTAK MAHINDRA MUTUAL FUND” is an original work
of Mr Ashok.P, bearing University Register Number 17MB2274 an is being submitted in
partial fulfilment for the award of the master’s degree in Business Administration of
Mysore University. The report has not been submitted earlier either to this University
/Institution for the fulfilment of the requirement of a course of study. Mr. Peravali Ashok
is guided by prof.Siddanagouda Policepatil who is the Faculty Guide as per the
regulations of Mysore University.

Signature of Faculty Guide Signature of Director / Principal /HOD

Date Date

3
 ACKNOWLEDGEMENT

I would like to express my gratitude towards all the people who have helped me with the
successful completion of this project. Without their encouragement, active guidance and
cooperation this project would not have been a success.

I would like to gratefully acknowledge Mysore University, this opportunity, Acharya

Bangalore B-School, for facilitating the completion of this project, Our Director,

Dr. H.R VENKATESHA, for his support and my guide, PROF.SIDDANAGOUD

POLICEPATIL , for his active guidance in successfully completing this project.
I also express my deep gratitude to all who have contributed for the timely completion of
this project.

Ashok.P 17MB2274

4
 INDEX

CHAPTERS
PAGENO
 INTRODUCTION 6-10

 OBJECTIVES OF THE STUDY 11

 NEED FOR THE STUDY 12

 RESEARCH METHODOLOGY 13

 LIMITATIONS OF THE STUDY 14

CHAPTER 1

 LITERATURE REVIEW 15-32

CHAPTER 2
 COMPANY PROFILE 33-45

CHAPTER 3
 DATA ANALYSIS AND INTERPRATATION 46-77

CHAPTER 4
 FINDINGS 78-79

CHAPTER 6
 SUGGESTIONS 80-82
 CONCLUSION 83

5
 INTRODUCTION OF MUTUAL FUNDS

A mutual fund is a common pool of money into which investors place their
contributions that are to be invested in accordance with a stated objective. The ownership
of the fund is thus joint or "mutual"; the fund belongs to all investors. A single investor's
ownership of the fund is in the same proportion as the amount of the contribution made
by him or her bears to the total amount of the fund.
Mutual Funds are trusts, which accept savings from investors and invest the same
in diversified financial instruments in terms of objectives set out in the trusts deed with
the view to reduce the risk and maximize the income and capital appreciation for
distribution for the members. A Mutual Fund is a corporation and the fund manager's
interest is to professionally manage the funds provided by the investors and provide a
return on them after deducting reasonable management fees.
The objective sought to be achieved by Mutual Fund is to provide an opportunity
for lower income groups to acquire without much difficulty financial assets. They cater
mainly to the needs of the individual investor whose means are small and to manage
investors portfolio in a manner that provides a regular income, growth, safety, liquidity
and diversification opportunities.

DEFINITION:
“Mutual funds are collective savings and investment vehicles where savings of small (or
sometimes big) investors are pooled together to investor their mutual benefit and returns
distributed proportionately”

6
"A mutual fund is an investment that pools your money with the money of an unlimited
number of other investors. In return, you and the other investors each own shares of the
fund. The fund's assets are invested according to an investment objective into the fund's
portfolio of investments. Aggressive growth funds seek long-term capital growth by
investing primarily in stocks of fast-growing smaller companies or market segments.
Aggressive growth funds are also called capital appreciation funds".

Why Select Mutual Fund?

The risk return trade-off indicates that if investor is willing to take higher risk then
correspondingly he can expect higher returns and vice versa if he pertains to lower risk
instruments, which would be satisfied by lower returns. For example, if an investor opt
for bank FD, which provide moderate return with minimal risk. But as he moves ahead to
invest in capital protected funds and the profit-bonds that give out more return which is
slightly higher as compared to the bank deposits but the risk involved also increases in the
same proportion.
Thus investors choose mutual funds as their primary means of investing, as Mutual funds
provide professional management, diversification, convenience and liquidity. That doesn't
mean mutual and investments risk free.
This is because the money that is pooled in are not invested only in debts funds which are
less riskier but are also invested in the stock markets which involves a higher risk but can
expect higher returns. Hedge fund involves a very high risk since it is mostly traded in the
Bank
derivatives market which is considered very volatile.
FD MUTUAL
POSTAL
FUND RETURN RISK MATRIX
SAVING

HIGHER RISK HIGHER RISK

VENTURE
EQUITYMODERATE RETURNS HIGHER RETURNS
CAPITAL

LOWER RISK LOWER RISK

LOWER RETURNS HIGHER RETURNS

ADVANTAGES OF MUTUAL FUNDS:

7
If mutual funds are emerging as the favorite investment vehicle, it is because of the many
advantages they have over other forms and the avenues of investing, particularly for the
investor who has limited resources available in terms of capital and the ability to carry out
detailed research and market monitoring. The following are the major advantages offered
by mutual funds to all investors:
1. Portfolio Diversification:
Each investor in the fund is a part owner of all the fund's assets, thus enabling him
to hold a diversified investment portfolio even with a small amount of investment that
would otherwise require big capital.
2. Professional Management:
Even if an investor has a big amount of capital available to him, he benefits
from the professional management skills brought in by the fund in the management of the
investor's portfolio. The investment management skills, along with the needed research
into available investment options, ensure a much better return than what an investor can
manage on his own. Few investors have the skill and resources of their own to succeed in
today's fast moving, global and sophisticated markets.
3. Reduction/Diversification Of Risk:
When an investor invests directly, all the risk of potential loss is his own, whether he
places a deposit with a company or a bank, or he buys a share or debenture on his own or
in any other from. While investing in the pool of funds with investors, the potential losses
are also shared with other investors. The risk reduction is one of the most important
benefits of a collective investment vehicle like the mutual fund.
4. Reduction Of Transaction Costs:
What is true of risk as also true of the transaction costs. The investor bears all the costs of
investing such as brokerage or custody of securities. When going through a fund, he has
the benefit of economies of scale; the funds pay lesser costs because of larger volumes, a
benefit passed on to its investors.
5. Liquidity:
Often, investors hold shares or bonds they cannot directly, easily and quickly sell. When
they invest in the units of a fund, they can generally cash their investments any time, by
selling their units to the ånd if open-ended, or selling them in the market if the fund is
close-end. Liquidity of investment is clearly a big benefit.
6. Convenience And Flexibility:
Mutual fund management companies offer many investor services that a direct
market investor cannot get. Investors can easily transfer their holding from one scheme to
the other; get updated market information and so on.
7. Tax Benefits:
Any income distributed after March 31, 2002 will be subject to tax in the
assessment of all Unit holders. However, as a measure of concession to Unit holders of
open-ended equity oriented funds, income distributions for the year ending March 31,
2003, will be taxed at a concessional rate of 10.5%.
8
In case of Individuals and Hindu Undivided Families a deduction upto Rs. 9,000 from the
Total Income will be admissible in respect of income from investments specified in
Section 80L, including income from Units of the Mutual Fund. Units of the schemes are
not subject to Wealth-Tax and Gift-Tax.

8. Choice of Schemes:
Mutual Funds offer a family of schemes to suit your varying needs over a lifetime.

9. Well Regulated:
All Mutual Funds are registered with SEBI and they function within the provisions of
strict regulations designed to protect the interests of investors. The operations of Mutual
Funds are regularly monitored by SEBI.
10. Transparency:
You get regular information on the value of your investment in addition to disclosure
on the specific investments made by your scheme, the proportion invested in each class of
assets and the fund managed s investment strategy and outlook.

DISADVANTAGES OF INVESTING THROUGH MUTUALFUNDS:

1. No Control Over Costs:
An investor in a mutual fund has no control of the overall costs of investing. The investor
pays investment management fees as long as he remains with the fund, albeit in return for
the professional management and research. Fees are payable even if the value of his
investments is declining. A mutual fund investor also pays fund distribution costs, which
he would not incur in direct investing. However, this shortcoming only means that there is
a cost to obtain the mutual fund services.
2. No Tailor-Made Portfolio:
Investors who invest on their own can build their own portfolios of shares and bonds and
other securities. Investing through fund means he delegates this decision to the fund
managers. The very-high-net-worth individuals or large corporate investors may find this
to be a constraint in achieving their objectives. However, most mutual fund managers
help investors overcome this constraint by offering families of funds in a large number of
different schemes- within their own management company. An investor can choose from
different investment plans and constructs a portfolio to his choice.
3. Managing A Portfolio Of Funds:
Availability of a large number of funds can actually mean too much choice for the
investor. He may again need advice on how to select a fund to achieve his objectives,
quite similar to the situation when he has individual shares or bonds to select.
4. The Wisdom Of Professional Management:

9
That's right, this is not an advantage. The average mutual fund manager is no better at
picking stocks than the average nonprofessional, but charges fees.
5. No Control:
Unlike picking your own individual stocks, a mutual fund puts you in the
passenger seat of somebody else's car.

10
OBJECTIVES OF THE STUDY
 To present an overview of mutual funds.
 To evaluate the performance of AXIS MUTUAL FUND, KOTAK MAHINDRA
MUTUAL FUND.
 To understand the nature of various mutual fund schemes offered by these two
companies.
 To offer suitable suggestions based on findings of the study.

11
 NEED FOR STUDY

The basic purpose of the study is to give broad idea on mutual funds and analyze
various schemes to highlight the diversified investment that mutual fund offers to its
investors.
 To study the basic concepts and trends in the mutual fund industry.
 The study enables a fresh investor to understand easily the various benefits offered by
mutual funds and their working in the market.
 To give a brief idea on the growth and dividend schemes of various types of funds
according to their investments.
 The study will definitely help the company and the researcher to analyze the present
situation of various schemes and to know whether these funds are performing to their
expectations or not.
 At the end of the study, I conclude that what type of investments would be ideal with
reference to the risk taking abilities of the investors and which type of investments
would suit their financial needs and analysis.

12
RESEARCH METHODOLOGY
The collection of data refers to a planned gathering of information relevant to the subject
matter of the study from the units under investigation the method of collection of data
depends mainly upon the nature, objective and scope of the inquiry on one hand and
available of resources and time on the other hand. Data may be classified into primary
and secondary data, depending upon the nature and mode of collection.
Mainly the data is collected from
1) Primary data
2) Secondary data

2. Secondary data:
The secondary data means the data that are already available i.e. they refer to the data,
which have already been collected and analyzed by someone else. Secondary data may
either be published data or unpublished data.
The following are the sources of secondary data
 Broachers of organization.
 Company manuals and records.
 Fact sheets and key information memorandum.
 Websites.
 Newspaper - THE ECONOMIC TIMES
 Journals
 Company website
 www.money control.com

13
LIMITATIONS OF STUDY
 This study is conducted in a short period of time i.e., 8 weeks which is not
sufficient to go in-depth.
 There is a difficulty in getting a continuous data relating to a past period regarding
the mutual fund schemes.
 Lack of additional information due to confidential matters.
 The present study is limited to selected mutual funds and selected companies
.

14
CHAPTER – 1

Literature review

15
MUTUAL FUND

INTRODUCTION:
A mutual fund is a trust that pools the savings of a number of investors who share
a common financial goal. The primary role is to assist investors in earning an income or
building their wealth, by participating in the opportunities available in various securities
markets. The money thus collected is then invested by the fund manager in different types
of securities. These could range from shares to debentures, from government bond to
money market instruments, depending upon the scheme’s stated objective. The
investment are spread across sectors, thus, risk is diversified, because all stocks may not
move in the same direction or in the same proportion at the same time.
In simpler terms, mutual funds are like baskets. Each basket holds certain types
of stocks, bonds or a blend of stocks and bonds to combine for one mutual fund portfolio.
For example, an investor who buys a fund called XYZ International Stock is buying one
investment security the basket that holds dozens or hundreds of stocks from all around the
globe, hence the "international" moniker.
It's also important to understand that the investor does not actually own the underlying
securities the holdings but rather a representation of those securities; investors own
shares of the mutual fund, not shares of the holdings. For example, if a particular mutual
fund includes shares of stock in Apple, Inc. (AAPL) among other portfolio holdings, the
mutual fund investor does not directly own Apple stock.
Instead, the mutual fund investor owns shares of the mutual fund. However, the investor
can still benefit by the appreciation of shares in AAPL.
Since mutual funds can hold hundreds or even thousands of stocks or bonds, they are
described as diversified investments. The concept of diversification is similar to the idea
of strength in numbers. Diversification helps the investor because it can reduce market
risk compared to buying individual securities.

16
MUTUAL FUND DEFINITION:
“A mutual fund is an investment security that enables investors to pool their
money together into one professionally managed investment. Mutual funds can invest in
stocks, bonds, cash or a combination of those assets. The underlying Security types
called holdings, combine to form one mutual fund, also called a portfolio”.

THE MUTUAL FUND INDUSTRY IN INDIA:

The origin of mutual fund industry in India is with the introduction of the
concept of mutual fund by UTI in the year 1963. Though the growth was slow, but it
accelerated from the year 1987 when non-UTI players entered the industry. In the past
decade, Indian mutual fund industry had seen dramatic improvements, both quality wise
as well as quantity wise. Before, the monopoly of the market had seen an ending phase;
the Assets under Management (AUM) was Rs. 67bn. The private sector entry to the fund
family raised the AUM to Rs. 470 bn in March 1993 and till April 2004; it reached the
height of 1,540bn.
The AUM of the Indian Mutual Funds Industry into comparison, the total of it is less than
the deposits of SBI alone, constitute less than 11% of the total deposits held by the Indian
banking industry.
The main reason of its poor growth is that the mutual fund industry in India is new in the
country. Large sections of Indian investors are yet to be intellectuated with the concept.
Hence, it is the prime responsibility of all mutual fund companies, to market the product
correctly abreast of selling. The mutual fund industry can be broadly put into four phases
according to the development of the sector. Each phase is briefly described as under.

17
FIRST PHASE – 1968:
Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up
by the Reserve Bank of India and functioned under the Regulatory and administrative
control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the
Industrial Development Bank of India (IDBI) took over the regulatory and administrative
control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the
end of 1988 UTI had Rs.6,700 cores of assets under management.

SECOND-PHASE 1987-1993:
Entry of non-UTI mutual funds. SBI Mutual Fund was the first followed by Can bank
Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank
Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92).
LIC in 1989 and GIC in 1990. The end of 1993 marked Rs.47, 004 as assets under
management.

THIRD PHASE – 1993-2000:

With the entry of private sector funds in 1993, a new era started in the Indian
mutual fund industry, giving the Indian investors a wider choice of fund families. Also,
1993 was the year in which the first Mutual Fund Regulations came into being, under
which all mutual funds, except UTI were to be registered and governed. The erstwhile
Kothari Pioneer (now merged with Franklin Templeton) was the first private sector
mutual fund registered in July 1993.
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more
comprehensive and revised Mutual Fund Regulations in 1996. The industry now
functions under the SEBI (Mutual Fund) Regulations 1996.
The number of mutual fund houses went on increasing, with many foreign mutual
funds setting up funds in India and also the industry has witnessed several mergers and
acquisitions. As at the end of January 2003, there were 33 mutual funds with total assets
of Rs. 1, 21,805 cores. The Unit Trust of India with Rs.44, 541 cores of assets under
management was way ahead of Other mutual funds.

FOURTH PHASE-SINCE FEB 2003:

This phase had bitter experience for UTI. It was bifurcated into two separate
entities. One is the Specified Undertaking of the Unit Trust of India with AUM of Rs.29,
835 crores (as on January 2003). The Specified Undertaking of Unit Trust of India,
functioning under an administrator and under the rules framed by Government of India
and does not come under the purview of the Mutual Fund Regulations.
The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund Regulations. With the
18
bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76, 000 cores of
AUM and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual
Fund Regulations, and with recent mergers taking place among different private sector
funds, the mutual fund industry has entered its current phase of consolidation and growth.
As at the end of September, 2004, there were 29 funds, which manage assets of
Rs.153108 cores under 421 schemes.

On the Growth Track:

After an initial slow growth, this four-decades aged industry slowly but steadily began to
see significant growth during the recent period of 1993-2005. The AUMs during this
period swelled phenomenally from mere Rs 47,000 crore in March 1993 to Rs 3,26,388
crore by March 2007.previously, the AUMs had been on a decline. The situation reversed
as, riding on a positive market sentiment, a slew of new offerings from mutual fund
houses swelled the AUMs, which stood at Rs 3,26,388 crore in March 2007. This was a
revolutionary shift in the industry with an all-round increase of Rs 94,080 crore in AUM.

REGULATORY STRUCTURE OF MUTUAL FUNDS IN INDIA:

The structure of mutual funds in India is guided by the SEBI. Regulations,
1996.These regulations make it mandatory for mutual åtnd to have three structures of
sponsor trustee and asset Management Company. The sponsor of the mutual fund and
appoints the trustees. The trustees are responsible to the investors in mutual fund and
appoint the AMC for managing the investment portfolio. The AMC is the business face of
the mutual fund, as it manages all the affairs of the mutual fund. The AMC and the mutual
fund have to be registered with SEBI.

SEBI REGULATIONS:
 As far as mutual funds are concerned, SEBI formulates policies and regulates the
mutual funds to protect the interest of the investors.
 SEBI notified regulations for the mutual funds in 1993. Thereafter, mutual funds
sponsored by private sector entities were allowed to enter the capital market.
 The regulations were fully revised in 1996 and have been amended thereafter
from time to time.
 SEBI has also issued guidelines to the mutual funds from time to time to protect
the interests of investors.
 All mutual funds whether promoted by public sector or private sector entities
including those promoted by foreign entities are governed by the same set of
Regulations. The risks associated with the schemes launched by the mutual funds
sponsored by these entities are of similar type. There is no distinction in
regulatory requirements for these mutual funds and all are subject to monitoring
and inspections by SEBI.

19
  SEBI Regulations require that at least two thirds of the directors of trustee
company or board of trustees must be independent i.e. they should not be
associated with the sponsors.
 Also, 50% of the directors of AMC must be independent. All mutual funds are
required to be registered with SEBI before they launch any scheme.
 Further SEBI regulations, inter-alia, stipulate that MFs cannot guarantee return in
any scheme and that each scheme is subject to 20 : 25 condition [i.e minimum 20
investors per scheme and one investor can hold more than 25% stake in the corpus
in that one scheme.
also SEBI has permitted MFs to launch schemes overseas subject various restrictions and
also to launch schemes linked to Real Estate, Options and Futures, Commodities, etc,

ASSOCIATION OF MUTUAL FUNDS IN INDIA (AMFI):

With the increase in mutual fund players in India, a need for mutual fund
association in India was generated to function as a non-profit organisation. Association of
Mutual Funds in India (AMFI) was incorporated on 22nd August, 1995.
AMFI is an apex body of all Asset Management Companies (AMC) which has been
registered with SEBI. till date all the AMCs are that have launched mutual fund schemes
are its members. It functions under the supervision and guidelines of its Board of
Directors.
Association of Mutual Funds India has brought down the Indian Mutual Fund
Industry to a professional and healthy market with ethical lines enhancing and
maintaining standards. It follows the principle of both protecting and promoting the
interests of mutual and as well as their unit holders.

The Objectives of Association of Mutual Funds in India:

The Association of Mutual Funds of India works with 30 registered AMCs of the
country. It has certain defined objectives which juxtaposes the guidelines of its Board of
Directors. The objectives are as follows:
• This mutual fund association of India maintains high professional and ethical
standards in all areas of operation of the industry.
• It also recommends and promotes the top class business practices and code of
conduct which is followed by members and related people engaged in the activities of
mutual fund and asset management. The agencies who are by any means connected or
involved in the field of capital markets and financial services also involved in this code of
conduct of the association.
• AMFI interacts with SEBI and works according to SEBIs guidelines in the mutual
fund industry.
• Association of Mutual Fund of India do represent the Government of India, the
Reserve Bank of India and other related bodies on matters relating to the Mutual Fund
Industry. It develops a team of well qualified and trained Agent distributors. It
implements a programme of training and certification for all intermediaries and other
engaged in the mutual fund industry. AMFI undertakes all India awareness programme
20
for investors in order to promote proper understanding of the concept and working of
mutual funds.
• At last but not the least association of mutual fund of India also disseminate
information on Mutual Fund Industry and undertakes studies and research either directly
or in association with other bodies.

FUTURE OF MUTUAL FUNDS IN INDIA:

By March 2007, Indian mutual fund industry reached Rs 3, 26,388 crore. It is
estimated that by 2010 March-end, the total assets of all scheduled commercial banks
should be Rs 40,90,000 crore. The annual composite rate of growth is expected 13.4%
during the rest of the decade. In the last 5 years we have seen annual growth rate of 9%.
According to the current growth rate, by year 2010, mutual fund assets will be double.

STRUCTURE OF A MUTUAL FUND:

India has a legal framework within which Mutual Fund have to be constituted. In
India open and close-end funds operate under the same regulatory structure i.e. as unit
Trusts. A Mutual Fund in India is allowed to issue open-end and close-end schemes under
a common legal structure. The structure that is required to be followed by any Mutual
Fund in India is laid down under SEBI (Mutual Fund) Regulations.

The Fund Sponsor:

Sponsor is defined under SEBI regulations as any person who, acting alone or in
combination of another corporate body establishes a Mutual Fund. The sponsor of the
fund is akin to the promoter of a company as he gets the fund registered with SEBI. The
21
sponsor forms a trust and appoints a Board of Trustees. The sponsor also appoints the
Asset Management Company as and managers. The sponsor either directly or acting
through the trustees will also appoint a custodian to hold funds assets. All these are made
in accordance with the regulation and guidelines of SEBI.
As per the SEBI regulations, for the person to quality as a sponsor, he must contribute at
least 40% of the net worth of the Asset Management Company and possesses a sound
financial track record over 5 years prior to registration.
Mutual Funds as Trusts:
A Mutual Fund in India is constituted in the form of Public trust Act, 1882. The
Fund sponsor acts as a settlor of the Trust, contributing to its initial capital and appoints a
trustee to hold the assets of the trust for the benefit of the unit-holders, who are the
beneficiaries of the trust. The fund then invites investors to contribute their money in
common pool, by scribing to "units" issued by various schemes established by the Trusts
as evidence of their beneficial interest in the fund. It should be understood that the fund
should be just a "pass through" vehicle. Under the Indian Trusts Act, the trust of the fund
has no independent legal capacity itself, rather it is the Trustee or the Trustees who have
the legal capacity and therefore all acts in relation to the trusts are taken on its behalf by
the Trustees. In legal parlance the investors or the unit-holders are the beneficial owners
of the investment held by the Trusts, even as these investments are held in the name of the
Trustees on a day-to-day basis. Being public trusts, Mutual Fund can invite any number
of investors as beneficial owners in their investment schemes.
Trustees:
A Trust is created through a document called the Trust Deed that is executed by
the fund sponsor in favour of the trustees. The Trust- the Mutual Fund — may be
managed by a board of trustees- a body of individuals, or a trust company- a corporate
body. Most of the funds in India are managed by Boards of Trustees. While the boards of
trustees are governed by the Indian Trusts Act, where the trusts are a corporate body, it
would also require to comply with the Companies Act, 1956. The Board or the Trust
company as an independent body, acts as a protector of the of the unit-holders interests.
The Trustees do not directly manage the portfolio of securities. For this specialist
function, the appoint an Asset Management Company. They ensure that the Fund is
managed by ht AMC as per the defined objectives and in accordance with the trusts deeds
and SEBI regulations.
The Asset Management Companies:
The role of an Asset Management Company (AMC) is to act as the investment
manager of the Trust under the board supervision and the guidance of the Trustees. The
AMC is required to be approved and registered with SEBI as an AMC. The AMC of a
Mutual Fund must have a net worth of at least Rs. 10 Crores at all times. Directors of the
AMC, both independent and non independent, should have adequate professional
expertise in financial services and should be individuals of high morale standing, a
condition also applicable to other key personnel of the AMC. The AMC cannot act as a
Trustee of any other Mutual Fund. Besides its role as a fund manager, it may undertake
specified activities such as advisory services and financial consulting, provided these
activities are run independent of one another and the AMC's resources (such as personnel,

22
systems etc.) are properly segregated by the activity. The AMC must always act in the
interest of the unit-holders and reports to the trustees with respect to its activities.

Custodian and Depositories:

Mutual Fund is in the business of buying and selling of securities in large
volumes. Handling these securities in terms of physical delivery and eventual safekeeping
is a specialized activity. The custodian is appointed by the Board of Trustees for
safekeeping of securities or participating in any clearance system through approved
depository companies on behalf of the Mutual Fund and it must fulfill its responsibilities
in accordance with its agreement with the Mutual Fund. The custodian should be an entity
independent of the sponsors and is required to be registered with SEBI. With the
introduction of the concept of dematerialization of shares the dematerialized shares are
kept with the Depository participant while the custodian holds the physical securities.
Thus, deliveries of a fund's securities are given or received by a custodian or a depository
participant, at the instructions of the AMC, although under the overall direction and
responsibilities of the Trustees.
Bankers:
A Fund's activities involve dealing in money on a continuous basis primarily
with respect to buying and selling units, paying for investment made, receiving the
proceeds from sale of the investments and discharging its obligations towards operating
expenses. Thus the Fund's banker plays an important role to determine quality of service
that the fund gives in timely delivery of remittances etc.
Transfer Agents:
Transfer agents are responsible for issuing and redeeming units of the Mutual
Fund and provide other related services such as preparation of transfer documents and
updating investor records. A fund may choose to carry out its activity in-house and charge
the scheme for the service at a competitive market rate. Where an outside Transfer agent
is used, the fund investor will find the agent to be an important interface to deal with,
since all of the investor services that a fund provides are going to be dependent on the
transfer agent.

TYPES OF MUTUAL FUNDS SCHEMES IN INDIA

23
 Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial
position, risk tolerance and return expectations etc. thus mutual funds has Variety of
flavors, Being a collection of many stocks, an investors can go for picking a mutual fund
might be easy. There are over hundreds of mutual funds scheme to choose from. It is
easier to think of mutual funds in categories, mentioned below

A. BY STRUCTURE:
1. Open - Ended Schemes:
An open-end fund is one that is available for subscription all through the year. These do
not have a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value
("NAV") related prices. The key feature of open-end schemes is liquidity.
2. Close - Ended Schemes:
A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15
years. The fund is open for subscription only during a specified period. Investors can
invest in the scheme at the time of the initial public issue and thereafter they can buy or
sell the units of the scheme on the stock exchanges where they are listed. In order to
provide an exit route to the investors, some close-ended funds give an option of selling
back the units to the Mutual Fund through periodic repurchase at NAV related prices.
SEBI Regulations stipulate that at least one of the two exit routes is provided to the
investor.

24
 3. Interval Schemes:
Interval Schemes are that scheme, which combines the features of open-ended and closed
ended schemes. The units may be traded on the stock exchange or may be open for sale or
redemption during pre-determined intervals at NAV related prices.

B. BY NATURE:
1. Equity Fund:
These funds invest a maximum part of their corpus into equities holdings. The
structure of the fund may vary different for different schemes and the fund manager's
outlook on different stocks. The Equity Funds are sub-classified depending upon their
investment objective, as follows:
• Diversified Equity Funds
• Mid-Cap Funds
• Sector Specific Funds
Tax Savings Funds (ELSS) Equity investments are meant for a longer time horizon, thus
Equity funds rank high on the risk-return matrix.
2. Debt Funds:
The objective of these Funds is to invest in debt papers. Government authorities,
private companies, banks and financial institutions are some of the major issuers of debt
papers. By investing in debt instruments, these funds ensure low risk and provide stable
income to the investors. Debt funds are further classified as:
 Gilt Funds: Invest their corpus in securities issued by Government, popularly known
as Government of India debt papers. These Funds carry zero Default risk but are
associated with Interest Rate risk. These schemes are safer as they invest in papers
backed by Government.
 Income Funds: Invest a major portion into various debt instruments such as bonds,
corporate debentures and Government securities.
 MIPs: Invests maximum of their total corpus in debt instruments while they take
minimum exposure in equities. It gets benefit of both equity and debt market. These
scheme ranks slightly high on the risk-return matrix when compared with other debt
schemes.
 Short Term Plans (STPs): Meant for investment horizon for three to six months.
These funds primarily invest in short term papers like Certificate of Deposits (CDs)
and Commercial Papers (CPS). Some portion of the corpus is also invested in
corporate debentures.
 Liquid Funds: Also known as Money Market Schemes, These funds provides easy
liquidity and preservation of capital. These schemes invest in short-term instruments
like Treasury Bills, inter-bank call money market, CPS and CDs. These funds are
meant for short-term cash management of corporate houses and are meant for an

25
 investment horizon of 3 months. These schemes rank low on risk-return matrix and
are considered to be the safest amongst all categories of mutual funds.

3. Balanced Funds/ hybrid funds:

As the name suggest they, are a mix of both equity and debt funds. They invest
in both equities and fixed income securities, which are in line with pre-defined investment
objective of the scheme. These schemes aim to provide investors with the best of both the
worlds. Equity part provides growth and the debt part provides stability in returns.
Further the mutual funds can be broadly classified on the basis of investment parameter
viz, Each category of funds is backed by an investment philosophy, which is pre-defined
in the objectives of the fund. The investor can align his own investment needs with the
funds objective and invest accordingly.

C. BY INVESTMENT OBJECTIVE:
 Growth Schemes:
Growth Schemes are also known as equity schemes. The aim of these schemes is
to provide capital appreciation over medium to long term. These schemes normally invest
a major part of their fund in equities and are willing to bear short-term decline in value
for possible future appreciation.
 Income Schemes:
Income Schemes are also known as debt schemes. The aim of these schemes is to
provide regular and steady income to investors. These schemes generally invest in fixed
income securities such as bonds and corporate debentures. Capital appreciation in such
schemes may be limited.
 Balanced Schemes:
Balanced Schemes aim to provide both growth and income by periodically
distributing a part of the income and capital gains they eam. These schemes invest in both
shares and fixed income securities, in the proportion indicated in their offer documents
(normally 50:50).
 Money Market Schemes:
Money Market Schemes aim to provide easy liquidity, preservation of capital and
moderate income. These schemes generally invest in safer, short-term instruments, such
as treasury bills, certificates of deposit, commercial paper and inter-bank call money.

 Load Funds:
A Load Fund is one that charges a commission for entry or exit. That is, each
time you buy or sell units in the fund, a commission will be payable. Typically entry and

26
exit loads range from 1% to 2%. It could be worth paying the load, if the fund has a good
performance history.
 No-Load Funds:
A No-Load Fund is one that does not charge a commission for entry or exit.
That is, no commission is payable on purchase or sale of units in the fund. The advantage
of a no load fund is that the entire corpus is put to work.

D. OTHER SCHEMES
 Tax Saving Schemes:
Tax-saving schemes offer tax rebates to the investors under tax laws
prescribed from time to time. Under Sec.88 of the Income Tax Act, contributions made to
any Equity Linked Savings Scheme (ELSS) are eligible for rebate.
 Index Schemes:
Index schemes attempt to replicate the performance of a particular index such
as the BSE Sensex or the NSE 50. The portfolio of these schemes will consist of only
those stocks that constitute the index. The percentage of each stock to the total holding
will be identical to the stocks index weightage. And hence, the returns from such schemes
would be more or less equivalent to those of the Index.
 Sector Specific Schemes:
These are the funds/schemes which invest in the securities of only those
sectors or industries as specified in the offer documents. e.g. Pharmaceuticals, Software,
Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in these and
are dependent on the performance of the respective sectors/industries. While these funds
may give higher returns, they are more risky compared to diversified funds. Investors
need to keep a watch on the performance of those sectors/industries and must exit at an
appropriate time.

NET ASSET VALUE (NAV):

Since each owner is a part owner of a mutual fund, it is necessary to establish
the value of his part. In other words, each share or unit that an investor holds needs to be
assigned a value. Since the units held by investor evidence the ownership of the fund's
assets, the value of the total assets of the fund when divided by the total number of units
issued by the mutual and gives us the value of one unit. This is generally called the Net
Asset Value (NAV) of one unit or one share. The value of an investor's part ownership is
thus determined by the NAV of the number of units held.

CALCULATION OF NAV:

27
 Let us see an example. If the value of a fund's assets stands at Rs. 100 and it has 10
investors who have bought 10 units each, the total numbers of units issued are 100, and
the value of one unit is Rs. 10.00 (1000/100). If a single investor in fact owns 3 units, the
value of his ownership of the fund will be Rs. 30.00(1000/100*3). Note that the value of
the fund's investments will keep fluctuating with the market-price movements, causing
the Net Asset Value also to fluctuate. For example, if the value of our fund's asset
increased from Rs. 1000 to 1200, the value of our investors holding of 3 units will now be
(1200/100*3) Rs. 36. The investment value can go up or down, depending on the markets
value of the fund's assets.
WHY SHOULD INVESTORS INVEST IN MUTUAL FUND:
An investor avails of the service of experienced and skilled professionals who are
backed by a dedicate of companies and selects suitable investments to achieve the
objectives of the schemes.
 Mutual funds invest in a number of companies across a broad cross-section of
industries and sectors. This diversification reduces the risk because seldom do all the
stocks decline at the same as in the same proportion. The investors achieve this
diversification through a mutual fund with far less money than you can do on our
own.
 Investing in a mutual fund reduces paperwork and helps an investor void many
problem such a bad deliveries delayed payments and unnecessary follow.

TYPES OF RISKS:
Systematic Risk - systematic risk influences a large number of assets. A significant
political event, for example, could affect several of the assets in your portfolio. It is
virtually impossible to protect yourself against this type of risk.
Unsystematic Risk - un systematic risk is sometimes referred to as "specific risk". This
kind of risk affects a very small number of assets. An example is news that affects a
specific stock such as a sudden strike by employees. diversification is the only way to
protect yourself from unsystematic risk.
Measures for calculating risk:
ALPHA :
37 measures how much if any of the extra risk helped the fund outperform its
corresponding benchmark. Using beta, alpha’s computation compares the fund’s
performance to the benchmark’s risk – adjusted returns and establishes if the fund’s
returns outperformed the market ‘s. given the same amount of risk. For example, if a fund
has an alpha of 1, it means that the fund outperformed the benchmark by 1%. Negative
alpha are bad in that they indicate that the fund underperformed for the amount of extra,
fund-specific risk that the fund’s investors under took.
Eg: Index is 10%,
Fund ‘X’= 11%
Actual return is = 13%
28
 Alpha = Actual- expected returns: 13% - 11% = 2%.

BETA:
Beta is useful statistical measure, which determines the volatility, or risk, of a fund
in comparison to that of its index per benchmark. A fund with a beta very close to I mean
the fund’s performance closely matches the index or benchmark. A beta greater than I
indicate greater volatility than the overall market, and a beta less than I indicates les
volatility than the benchmark.
Benchmark = 1
Beta > 1 – volatile / risky
Beta < 1 – less volatile / stable.

STANDARD DEVIATION :
The standard deviation essentially reports a fund’s volatility, which indicates the
returns to area or fall drastically in a short period of time. A security that is also
considered higher risk because its performance may change quickly in either direction at
any moment. The standard deviation of a fund measure this risk by measuring the degree
to which the fund fluctuates in relation to its mean returns.

EMERGING ISSUES IN MUTUAL FUNDS:

RATING OF MUTUAL FUNDS SCHEME:
Total returns has been the criteria for measuring the performance of mutual fund.
Therefore CRISIL has development a composite performance ranking which measures
performance for each of the open-ended scheme. According to CRISIL. This measure is
applicable only to those schemes, which are at least two years old and disclose 100% of
their portfolios.
CHANGES OF MUTUAL FUNDS DUE TO THE ADVENT OF NET:
As per SEBI regulations, bond funds and equity funds can change a maximum of
2.25% and 2.5% as a administrative fees, respectively. Mutual funds could bring down
their administrative costs to 0.75%, if trading is done online and consequently improves
the return potential of their investors though the Net.
NEW NORM ON NPS CLASSICFICATION:
The Malegaon committee has made important recommendations regarding norms on
classification of NPAs in debt securities and norms for valuation of liquids securities in a
mutual fund sche4mes. The committee has recommended that debt securities held by
Mutual fund in their portfolio can be classified as NPA, if Mutual funds will have to
disclose the NPAs to unit holders in a half-yearly basis.
INFLUENCE OF TECHNOLOGY:

29
 A majority of the Mutual fund have their own websites providing basic information
relating to the schemes. Mutual fund have to use electronic fund transfer method top
remit their dividends and redemption proceeds. However the most significant influence of
technology is seen in serving investors. So technology can bridge the gap between
investor education and products positioning.
PRODUCT INNOVATION :
Product innovation is an emerging feature in the Mutual fund industry in India. Most
of the products offered by Mutual fund can be divided among three classes pf cash 34
funds, income funds and equity funds. The year 2002 was different in that the products
offered were far more innovative. Templeton India launched a debt fund that would invest
predominantly in floating rate bonds.
INDICES FOR MUTUAL FUNDS:
The AMFI has recently launched four indices for gilt funds and another set of indices
for balanced funds, monthly income planed and liquid funds. The indices, which have
been developed and will be maintain by icici securities and finance complained and
CRISIL .com, respectively, will be mandated for use by Mutual funds to enable the
comparison of performance.
FUNDS OF FUNDS:
The SEBI may soon permit mutual funds to float a new category of funds called
“funds of funds “, which will invest in other Mutual fund schemes. These schemes will
enable people to invest in different Mutual funds schemes through a single fund.
LIQUIDITY: :
This has again and again highlighted, for it the basic premise that most investors in
Mutual fund only because of the high level of liquidity. There has to be as good market
development for your issue, so that there is a ready market available for them.

SYSTEMATIC INVESTMENT PLAN (SIP):

It is a disciplined investment plan which helps reduce propensity to market
fluctuations. SIP is an option of investing in a mutual fund scheme at regular intervals.
SIP investments can help you reach your financial goals by taking advantage of averaging
your investment, and power of compounding. SIP in also known as Rupee cost
averaging, as buying at different intervals bring down the average cost of the units.
A lump sum is a single payment of money. as opposed a to a series of payments
made over time. It is just like a recurring deposit with the post office or bank where you
put in a small amount every month. The difference here is that the amount is invested in a
mutual fund.
SIP mainly helps us to get addicted to an investment principle:-
Income- savings = expenditure, instead of following the principle of –
Income- expenditure = savings

30
SIP can be used an any type of mutual fund. Equity or fixed income. This strategy is best
used in an equity fund where and investor can capture the volatility in the equity markets
to reduce that cost of investment. The NAV of any fund is determined by the market price
of the stocks the fund has invested in. A very important aspect to kept in mind is the entry
and exit load charged by all mutual funds. In a normal investment most funds either
charge entry load or exit load. But in a SIP along with an entry load charged for each
installment, an exit load is charged if program is with draw before a specific period. This
period could vary from six months to two years.

BENEFITS OF SIP:
 Investments are consistent and steady.
 Power of compounding; more the size of investment, more the earnings .
 Power of rupee cost averaging; Market’s volatility shall work wonders for you.
 It enables to overcome spreading and encourage savings, thereby securing
future.
 It is an entirely mechanized process and involves no complications.
 A flexible mode of investment for all mutual funds investors.
 Possible to make small payments with SIP.
 Prevents investors from speculating in highly volatile financial markets.

SYSTEMATIC TRANSFER PLAN(STP):

An STP is a plan that allows investors to periodically transfer a certain amount /
switch (redeem) certain units from one scheme and invest in another scheme of the same
mutual fund house.
Thus at regular intervals an amount/number of units you choose is transferred from
one mutual fund scheme to another of your choice. STP is done only between the same
fund house

BENEFITS OF STP:
 STP transfers funds to bank account at regular intervals.
 It is used when investor doesn’t want to withdraw the entire amount.
 STP helps in creating a monthly income from investments on periodic basis.
 Investor keeps getting returns on invested amount rather than withdrawing it.
 STP helps in rebalancing the portfolio by reallocating investments from debt to
equity or vice versa.

31
SYSTEMATIC WITHDRAWAL PLAN(SWP):
Systematic withdrawal plan allows an investor to withdraw a designated sum of
money and units from the fund account at pre-defined regular intervals.
It allows investors a certain level of independence from market instability and helps in
avoiding market timing.

BENEFITS OF SWP:
 Monthly Regular Income - SWP helps in creating a regular flow of money from
investments on a periodic basis, i.e., on a monthly or quarterly basis.
 Tax Benefit - Instead of selling all the units at once, spanning the income across
multiple intervals can lower the total tax. It is a tax efficient way of receiving regular
income.
 Avoid market fluctuations - It saves an investor from market fluctuations, as regular
with drawal average out return value.

32
Company profile

INVESTMENT PLANS OF AXIS MUTUAL FUND

Axis Bank was the first of the new private banks to have begun operations in
1994, after the Government of India allowed new private banks to be established. The
Bank was promoted jointly by the Administrator of the specified undertaking of the Unit
Trust of India (UTI), Life Insurance Corporation of India (LIC) and General Insurance
Corporation of India (GIC) and other four PSU insurance companies, i.e. National
Insurance Company Ltd., The New India Assurance Company Ltd. Company Ltd. And
United India Insurance Company Ltd. 405.17 crores with the public holding (other than
promoters and GDRs) at 53.09%.
The Bank’s Registered Office is at Ahmedabad and its Central Office is
located at Mumbai. The bank has a very wide network of more than 1000 branches and
extension counters ( as on 31st march 2010). The Bank has a network of over 4055 ATMs
( as on 31st march 2010) providing 24 hours a day banking convenience to its customers.
This is one of the largest ATM networks in the country.
The Bank has strengths in both retail and corporate banking and is committed to
adopting the best industry practices internationally in order to achieve excellence.
Axis Mutual Fund was incorporated in January 2009 and launched its first
scheme in October the same year. The fund house is sponsored by Axis Bank Ltd. and its
trustee is Axis Mutual Fund Trustee Ltd. As of March 2018, Axis Mutual Fund manages
assets worth Rs.77,325.41 crore. Deutsche Bank A.G is the custodian for all its mutual
fund schemes except for Axis Gold ETF which is taken care by the Bank of Nova Scotia.
Axis Mutual Fund boasts of a well-rounded product suite comprising of over 50 schemes.
Sponsor: Axis Bank Limited
Trustee: Axis Mutual Fund Trustee Limited
Investment Manager: Axis Asset Management Company Ltd.
Statutory Details: Axis Mutual Fund, a trust set up under the provisions of the Indian
Trusts Act, 1882.
TYPES OF FUNDS OFFERED BY AXIS MUTUAL FUND:
Axis Mutual Fund offers mutual fund schemes in 3 categories - Equity, Debt and
Hybrid. The equity category has 6 schemes, debt has 9 schemes, and the hybrid category
has 5 schemes.
The following mentioned funds are briefly explained below:

33
 EQUITY FUNDS:
Equity funds (or growth funds) invest over 65% of their corpus in stocks, equities and
equity-related securities of companies – effectively making the investor a part owner of
all the securities in the fund’s portfolio. The objective of these funds is long-term capital
appreciation and involves a high level of risk, with the highest potential rewards. Axis
Mutual Fund offers 5 schemes in this category and they are
1. Axis Blue chip Fund (Regular Growth) - This fund was formerly known as Axis
Equity Fund and it primarily invests in large cap shares.
o Investment Objective - To invest in a portfolio that offers a wider scope by
mainly investing in a mix of equity, equity-related stocks, and derivatives of
large cap companies.
o Ideal for - Investors looking for capital gains over long term and who desire
to invest in a diversified portfolio comprising of equity-related instruments.
2. Axis Focused 25 Fund - This is an open-ended equity scheme that makes
investments in up to 25 companies which the fund manager feels will offer
compounded returns.
o Investment Objective - To bring about appreciation in capital over long term
by investing in a blended portfolio of equity and equity-related instruments of
up to 25 companies.
o Ideal for - Investors with a low risk appetite and who wish to receive capital
gains over a longer duration.
3. Axis Midcap Fund - This open-ended equity scheme concentrates its investments in
midcap companies having the potential to deliver elevated growth and the investment
strategy embeds risk management into it.
o Investment Objective - To accomplish capital gains for the investor over long
term by focusing its investments in the stocks of midcap companies.
o Ideal for - Investors who are looking to grow their capital over a longer
duration and is willing to take high risks.
4. Axis Multicap Fund - This is an open-ended equity scheme that invests in diversified
portfolio comprising of large cap, mid cap, and small cap stocks.
o Investment Objective - To offer capital appreciation to investors by
investing in a mix of equity and equity-related instruments.
o Ideal for - Investors with an appetite for high risks and who wish to
grow their capital over long term.
5. Axis Long Term Equity Fund - Investors who wish to enjoy tax benefits while also
gaining satisfactory returns on their investment can go for the Axis Long Term Equity
Fund. This is an open-ended equity-linked savings scheme (ELSS) with a lock-in
period of 3 years. The fund balances its investments between large and midcap
companies and offers tax benefits under Section 80C of the Income Tax Act, 1961.

34
 o Investment Objective - To produce gainful returns for the investor by
investing in a diversified portfolio of equity and equity-related instruments.
o Ideal for - Investors who are looking at achieving gains in capital over a
longer duration while also enjoying tax benefits.

DEBT FUNDS:
Mutual funds that invest in fixed income assets such as government securities,
treasury bills, corporate bonds, and other money market instruments are known as Debt
Funds. Axis Mutual Fund offers 9 debt funds and they’ve been explained below:
1. Axis Liquid Fund - This is an open-ended liquid scheme that offers low risks and
moderate returns to the investor.
 Investment Objective - To provide high liquidity, reasonable returns, and
low risk by investing in debt securities and money market instruments.
 Ideal for - Investors who have low risk appetite and wish to grow their
capital.
2. Axis Treasury Advantage Fund (Regular Growth) - This is an open-ended debt
scheme which offers high liquidity and has an average maturity of 293 days.
 Investment Objective - To provide most favorable returns to investors by
investing in a mixture of short term debt and money market instruments.
 Ideal for - Investors who are looking to invest for a short term and wish to have
spare cash in their bank accounts.
3. Axis Short Term Fund (Regular Growth) - This open-ended debt scheme allocates
its portfolio to corporate bonds and money market instruments for a duration of 1 to 3
years. The fund is targeted at capturing opportunities in the short duration segment,
 Investment Objective - To generate steady returns by following a low-
risk strategy of investment through a portfolio of money market
instruments and debt securities.
 Ideal for - Investors seeking regular income while retaining liquidity over
medium to short term.
4. Axis Dynamic Bond Fund (Regular Growth) - With an average maturity of 2.1
years, this fund is an open-ended scheme with portfolio allocation across all segments.
At the moment, the duration of the fund is 1.7 years.
 Investment Objective - To offer optimal returns to the investor by
actively managing a portfolio of money market and debt instruments.
 Ideal for - Investors who wish to gain optimal returns over medium to
long term.
5. Axis Corporate Debt Fund (Regular Growth) - Previously known as Axis
Corporate Debt Opportunities Fund, this scheme invests primarily in AA+ and above
rated corporate bonds.
35
  Investment Objective - To provide stable income and capital gains by
concentrating its investments in corporate debt.
 Ideal for - Investors looking at achieving steady returns and having a
moderate risk appetite.
6. Axis Strategic Bond Fund - This fund was previously known as Axis Regular
Savings Fund and it invests in portfolios the Macaulay duration of which ranges from
3 years to 4 years. These funds are actively managed and its primary investment is on
corporate bonds.
 Investment Objective - To maintain liquidity of the folio and generate
maximum returns for investors.
 Ideal for - Investors seeking optimal returns on their investments over
medium term.
7. Axis Credit Risk Fund - This open-ended debt scheme was formerly known as Axis
Fixed Income Opportunities Fund and it invests mainly in AA and below rated
corporate bonds.
 Investment Objective - To provide steady returns across the credit and
yield spectrum by investing mainly in debt and money market instruments.
 Ideal for - Investors who have a moderate risk appetite and who wish to
achieve capital gains.
8. Axis Gilt Fund - This scheme was formerly known as Axis Constant Maturity 10-
year Fund and focuses its investments in government securities. Mimicking returns of
a 10-year government security is the intent of this scheme which has 9.4 years as the
average maturity.
 Investment Objective - To create superior quality liquid vehicle by
investing in government securities.
 Ideal for - Investors who are looking for risk-free returns and capital
appreciation when investing for medium and long durations.
9. Axis Banking and PSU Debt Fund - This is an open-ended liquid scheme that offers
low risks and moderate returns to the investor.
 Investment Objective - Generating steady returns by investing mainly in
money market and debt instruments that are issued by PSUs (Public
Sector Units), banks, and PFIs (Public Financial Institutions).
 Ideal for - Investors looking for frequent income in short and medium
durations and who wish to invest in securities issued by banks, PSUs, and
PFIs.
HYBRID FUNDS:
These funds invest in both, equities and fixed income instruments in
accordance with pre-determined investment objectives. Effectively, they provide the
stability of returns and appreciation of capital to investors. The general investment pattern

36
is 60% in equity and 40 in debt. Axis Mutual Fund offers 6 schemes and it has been
described below:
1. Axis Equity Saver Fund - It is an open-ended hybrid scheme that invests in a mix of
equity, debt, and arbitrage opportunities. The fund is relatively less volatile and
generates income through investments in multi-class assets.
 Investment Objective - To generate and optimise long-term returns for
the investor by diversifying the portfolio to reduce volatility.
 Ideal for - Investors looking at accomplishing returns over medium to
longterm and who wish to diversify their portfolio.
2. Axis Dynamic Equity Fund - It is an open-ended dynamic asset allocation fund that
invests in a portfolio of equity and equity-related instruments. It also invests in debt
securities and money market instruments. By actively allocating assets, the fund aims
to control risks thereby achieving fruitful returns for the investor.
 Investment Objective - By investing in a mixed portfolio of equity and
equity-related instruments, the fund hopes to offer capital appreciation to
investors.
 Ideal for - Investors willing to take high risks and over a long term, wish
to get satisfactory returns on their investment
3. Axis Regular Saver Fund - This fund was formerly known as Axis Income Saver
Fund and it predominantly invests in debt instruments.
 Investment Objective - Offer capital appreciation and regular income to
investors by investing in debt and money market securities.
 Ideal for - Investors looking to achieve capital gains while also receiving
steady income over medium to long term.
4. Axis Children’s Gift Fund (No Lock – In - Regular Growth) - This is an open-
ended balanced scheme that presents a great way to save for your child’s education or
any other dream that he/she wishes to pursue. The fund is relatively less volatile and
offers a longer holding period so that your investments have a longer time to grow.
 Investment Objective - To fetch good returns for the investor by investing
in equity and equity related instruments.
 Ideal for - Investors who wish to invest in the future of their child by
growing their investments over long term.
5. Axis Arbitrage Fund - This open-ended scheme was formerly known as Axis
Enhanced Arbitrage Fund and its primary investment is on arbitrage opportunities.
 Investment Objective - To leverage ‘low volatility absolute returns’
strategy to fetch good returns for the investor while taking advantage of
arbitrage opportunities, debt, and money market instruments.
 Ideal for - Investors with a desire to receive income over short or medium
duration and wish to invest in arbitrage opportunities that prevails in the
cash and derivatives sectors in the equity market.

37
Other Funds from Axis Mutual Fund:
In this category, Axis Mutual Fund offers 3 schemes the features of which have
been described below:
1. Axis Gold ETF - This is an open-ended scheme that replicates/tracks the domestic
price of gold.
 Investment Objective - To produce returns for the investor that
commensurate with the performance of gold.
 Ideal for - Investors who wish to achieve capital gains over a medium and
long term and who prefer to invest in gold securities.
2. Axis Gold Fund - This is an open-ended Fund of Fund (FOF) scheme that invests
in units of Axis Gold ETF, an exchange-traded fund (ETF) having physical gold as an
underlying asset. No demat account is required to invest in this scheme.
 Investment Objective - To produce returns that matches the returns offered
by Axis Gold ETF.
 Ideal for - Investors who are looking to grow their capital over a medium or
long term and who wish to invest in gold ETF.
3. Axis Nifty ETF - This is an open-ended exchange-traded fund that tracks the Nifty
50 Index consisting of 50 companies that are spread across 12 segments. This scheme
follows an efficient low-cost strategy and offers protection to investors against short-
term outflows and inflows.
 Investment Objective - To generate returns for the investor that
commensurates with the returns offered by Nifty 50 Index but will be subject
to tracking errors.
 Ideal for - Investors who seek capital gains over medium to long term and
who prefer investing in equity and its associated instruments enclosed in the
Nifty 50 Index.

INVESTMENT PLANS OF KOTAK MAHINDRA MUTUAL FUND

38
 Kotak Mahindra is one of India's leading financial institutions, offering
complete financial solutions that encompass every sphere of life. From commercial
banking, to stock broking, to mutual funds, to life insurance, to investment banking, the
group caters to the financial needs of individuals and corporates.
The group has a net worth of Rs.7,911 crore and employs around 20,000
employees across its various businesses, servicing around 7 million customer accounts
through a distribution network of 1,716 branches, franchisees and satellite offices across
more than 470 cities and towns in India and offices in New York, California, San
Francisco, London, Dubai, Mauritius and Singapore.
Kotak Mahindra Asset Management Company Limited (KMAMC), a wholly
owned subsidiary of KMBL, is the Asset Manager for Kotak Mahindra Mutual Fund
(KMMF). KMAMC started operations in December 1998 and has over 10 Lac investors
in various schemes. KMMF offers schemes catering to investors with varying risk - return
profiles and was the first fund house in the country to launch a dedicated gilt scheme
investing only in government securities.
Established in 1985, the Kotak Mahindra group has been one of India's reputed
financial organizations. In February 2003, Kotak Mahindra Finance Ltd, the group's
flagship company was given the license to carry on banking business by the Reserve
Bank of India (RBI). This approval creates banking history since Kotak Mahindra
Finance Ltd. is the first non-banking finance company in India to convert itself in to a
bank as Kotak Mahindra Bank Ltd.The Bank offers comprehensive business solutions
that include Trade Services, Cash Management Service and Credit facilities, keeping in
mind the needs of the business community. Kotak Mahindra Bank has over 212 branches
spread across 124 locations in the country offering both traditional banking products and
investment advisory services. The Bank has the products, the experience, the
infrastructure and most importantly the commitment to deliver pragmatic, end-to-end
solutions that really work.
Sponsor:KotakMahindraBankLimited
Trustee: Kotak Mahindra Trustee Company Limited
Investment Manager: Kotak Mahindra Asset Management Company Limited
(KMAMCL).
Statutory Details: Kotak Mahindra Mutual Fund, a trust set up under the Provisions of the
Indian Trusts Act, 1882. Kotak Mahindra Asset Management Company Limited, the Asset
Management Company incorporated under the Companies Act, 1956 and authorized by
SEBI to act as Investment Manager to the Schemes of Kotak Mahindra Mutual Fund.

39
 Types of funds offered by Kotak Mahindra Mutual Fund:
Axis Mutual Fund offers mutual fund schemes in 3 categories - Equity, Debt and
Hybrid. The equity category has 7 schemes, debt has 10 schemes, and the hybrid category
has 4 schemes.
The following mentioned funds are briefly explained below:
EQUITY FUNDS:
Equity funds (or growth funds) invest over 65% of their corpus in stocks,
equities and equity-related securities of companies – effectively making the investor a
part owner of all the securities in the fund’s portfolio. The objective of these funds is
long-term capital appreciation and involves a high level of risk, with the highest potential
rewards. Kotak Mahindra Mutual Fund offers 5 schemes in this category and they are
1. Kotak Blue chip Fund - This fund was is also known as Erstwhile Kotak 50 and it
primarily invests in large cap shares.
o Investment Objective - To generate capital appreciation from a portfolio of
predominantly equity & equity related securities of large cap companies.
o Ideal for - Investors looking for capital gains over long term and who desire
to invest in a diversified portfolio comprising of equity-related instruments.
2. Kotak Standard Multi cap Fund - This fund is also known as Erstwhile Kotak
select focus fund . It is an open-ended equity scheme that invests in diversified
portfolio comprising of large cap, mid cap, and small cap stocks.
o Investment Objective – To generate long-term capital appreciation from
a portfolio of predominantly equity & equity related securities. generally
focused on a few selected sectors across market capitalisation..
o Ideal for - Investors with an appetite for high risks and who wish to grow
their capital over long term.
3. Kotak small cap Fund – This fund is also known as Erstwhile kotak mid cap. It is
an open-ended equity scheme concentrates its investments in midcap companies
having the potential to deliver elevated growth and the investment strategy embeds
risk management into it.
o Investment Objective - To generate capital appreciation from a diversified
portfolio of equity and equity related securities by investing predominantly in
small cap companies.
o Ideal for - Investors who are looking to grow their capital over a longer
duration and is willing to take high risks.
4. Kotak Equity Opportunities Fund – This fund is also known as Erstwhile Kotak
Opportunities. It is an open-ended equity scheme concentrates its invest
predominantly in a mix of large and midcap stocks from various sectors, which look
promising, based on the growth pattern in the economy.
o Investment Objective - To generate capital appreciation from a diversified
portfolio of equity and equity related securities.
40
 o Ideal for - Investors who are looking to grow their capital over a longer
duration and is willing to take high risks.
5. Kotak Emerging Equity scheme - This is an open-ended equity scheme that invests
in diversified portfolios of mid cap stocks.
o Investment Objective - To generate long-term capital appreciation from a
portfolio of equity & equity related securities predominantly in mid cap
companies.
o Ideal for - Investors with an appetite for high risks and who wish to grow
their capital over long term.
6. Kotak India EQ Contra Fund – This fund is also known as Erstwhile Kotak Classic
Equity Fund. It is an open-ended equity scheme that invests in diversified portfolios
of different sectors.
o Investment Objective - To produce gainful returns for the investor by
investing in a diversified portfolio of equity and equity-related instruments.
o Ideal for - Investors who are looking at achieving gains in capital over a
longer period of time.
7. Kotak Infrastructure and Economic Reform Fund – This is an open ended equity
scheme which mainly contributes to infrastructure and economic development of
India.
o Investment Objective - To generate long-term capital appreciation from a
diversified portfolio of predominantly equity and equity-related securities of
companies involved in economic development of India as a result of potential
investments in infrastructure and unfolding economic reforms. There is no
assurance that the investment objective of the Scheme will be achieved.
o Ideal for - Investors with an appetite for high risks and who wish to grow
their capital over long term.
DEBT FUNDS:
A debt fund is set up with the primary objective of generating stable income
returns and preservation of capital. A large portion of the corpus is invested in fixed-
income securities like government securities (GILTS), corporate debentures and money
market instruments. These funds are far less volatile than equity funds, but also deliver
substantially lower rewards. There is safety of capital, but only moderate growth. . Kotak
Mahindra Mutual Fund offers 10 debt funds and they’ve been explained below:
1. Kotak Mahindra Liquid Scheme – This fund is also known as Erstwhile Kotak
Liquid Scheme. It is an open-ended debt scheme that offers low risks and moderate
returns to the investor.
 Investment Objective - To provide reasonable returns and high level of
liquidity by investing in debt and money market instruments of different
maturities so as to spread risk across different kinds of issuers in the debt
markets.

41
  Ideal for - Investors who have low risk appetite and wish to grow their
capital.
2. Kotak Dynamic Bond Fund - This fund is also known as Erstwhile Kotak Flexi
Debt Scheme. It is an open- ended debt scheme. With an average maturity of 3.7
years, this fund is an open-ended scheme with portfolio allocation across all segments.
At the moment, the duration of the fund is 2.9 years.
 Investment Objective - To maximize returns through an active
management of a portfolio of debt and money market securities.
 Ideal for - Investors who wish to gain optimal returns and risk involved is
moderately low.
3. Kotak Banking and PSU Debt Fund - This is an open-ended liquid scheme that
offers low risks and moderate returns to the investor.
 Investment Objective – To generate income by predominantly investing
in debt & money market securities issued by Banks, Public Sector
Undertaking (PSUs), Public Financial Institutions (PFI), Municipal Bonds
and Reverse repos in such securities, sovereign securities issued by the
Central Government and State Governments or any security
unconditionally guaranteed by the Govt. of India.
 Ideal for - Investors looking for frequent income in short and medium
durations and who wish to invest in securities issued by banks, PSUs, and
PFIs and risk involved is moderately low.
4. Kotak Corporate Bond Fund – This is an open ended debt scheme it invests
primarily in AA+ and above rated corporate bonds.
 Investment Objective – To generate income by investing in debt and
money market securities across the yield curve and predominantly in AA+
and above rated corporate securities. The scheme would also seek to
maintain reasonable liquidity within the fund.
 Ideal for - Investors looking at achieving steady returns and having a
moderate risk appetite.
5. Kotak Mahindra Gilt Unit Scheme - 98 Investment Plan – It is an open-ended
fund dedicated to gilt unit scheme.
 Investment Objective - To generate risk free returns through investments
in sovereign securities issued by the Central and/or State Government(s)
and / or reverse repos in such securities.
 Ideal for - Investors who are looking for risk to be moderate and capital
appreciation when investing for medium and long durations.
6. Kotak Credit Risk Fund – This fund is also known as Erstwhile Kotak Income
Opportunities Fund. It is an open-ended debt scheme and it invests mainly in AA and
below rated corporate bonds.
 Investment Objective - To generate income by investing in debt and
money market securities across the yield curve and predominantly in AA
42
 rated and below corporate securities. The scheme would also seek to
maintain reasonable liquidity within the fund.
 Ideal for - Investors who have a moderate risk appetite and who wish to
achieve capital gains.
7. Kotak Low Duration Fund - This is an open-ended debt scheme and the fund is
focused on low duration securities with portfolio macaulay duration between 6
months and 12 months.
 Investment Objective - To generate income through investment primarily
in low duration debt & money market securities. There is no assurance or
guarantee that the investment objective of the scheme will be achieved.
 Ideal for - Investors seeking regular income while retaining liquidity over
medium to short term.
8. Kotak Savings Fund – This fund is also known as Erstwhile Kotak Treasury
Advantage Fund. It is an open-ended debt scheme which offers high liquidity and
has an average maturity of 3 to 6 months.
 Investment Objective - To generate returns through investments in debt and
money market instruments with a view to reduce the interest rate risk. However,
there is no assurance or guarantee that the investment objective of the scheme
will be achieved.
 Ideal for - Investors who are looking to invest for a short term and wish to have
spare cash in their bank accounts.
9. Kotak Bond - This fund is an open-ended debt scheme and it invests in portfolios in
duration of which ranges from 1year and above.
 Investment Objective - To create a portfolio of debt instruments such as
bonds, debentures, Government Securities and money market instruments,
including repos in permitted securities of different maturities, so as to
spread the risk across different kinds of issuers in the debt markets.
 Ideal for - Investors seeking optimal returns on their investments over
medium term.
10. Kotak Medium Term Fund- With an average maturity of 2.9 years, this fund is an
open-ended scheme with portfolio allocation across all segments. At the moment, the
duration of the fund is 2.1 years.
 Investment Objective - To generate regular income and capital
appreciation by investing in a portfolio of medium term debt and money
market instruments. There is no assurance or guarantee that the investment
objective of the scheme will be achieved.
 Ideal for - Investors who wish to gain optimal returns over medium to
long term.

43
HYBRID FUNDS:
Hybrid funds invest in a mix of equity and debt securities and offers
diversification to the investors thereby mitigating the risks. Kotak Mahindra Mutual
Fund offers 4 schemes and it has been described below:
1. Kotak Equity Savings Fund - It is an open-ended hybrid scheme that invests in a
mix of equity, debt, and arbitrage opportunities. The fund is relatively less volatile and
generates income through investments in multi-class assets.
 Investment Objective - To generate capital appreciation and income by
predominantly investing in arbitrage opportunities in the cash and
derivatives segment of the equity market, and enhance returns with a
moderate exposure in equity & equity related instruments.There is no
assurance or guarantee that the investment objective of the scheme will be
achieved.
 Ideal for - Investors looking at accomplishing returns over medium to
long term and who wish to diversify their portfolio.
2. Kotak Equity Hybrid - This fund is also known as Erstwhile Kotak Balance. It is
an open ended hybrid scheme and it predominantly invests in equity and equity
related instruments.
 Investment Objective - To achieve growth by investing in equity and
equity related instruments, balanced with income generation by investing
in debt and money market instruments.
 Ideal for - Investors looking to achieve capital gains while also receiving
steady income over medium to long term.
3. Kotak Debt Hybrid – This is fund is also known as Erstwhile Kotak Monthly
Income plan. It is an open-ended hybrid fund and Monthly income is not assured and
is subject to availability of distributable surplus that invests in a portfolio basket
comprising of equity, equity related securities, debt instruments.
 Investment Objective - To enhance returns over a portfolio of debt
instruments with a moderate exposure in equity and equity related
instruments. By investing in debt securities, the Scheme will aim at
generating regular returns, while enhancement of return is intended
through investing in equity and equity related securities. The Scheme may
also use various derivative and hedging products from time to time, in the
manner permitted by SEBI.
 Ideal for - Investors who wish to achieve capital appreciation and have
an appetite for risk.
4. Kotak Equity Arbitrage Fund - This open-ended hybrid scheme and its primary
investment is on arbitrage opportunities.
 Investment Objective - To generate capital appreciation and income by
predominantly investing in arbitrage opportunities in the cash and
derivatives segment of the equity market, and by investing the balance in
debt and money market instruments.
44
  Ideal for - Investors with a desire to receive income over short or
medium duration and wish to invest in arbitrage opportunities that
prevails in the cash and derivatives sectors in the equity market.
Other Funds from Kotak Mahindra Mutual Fund:
In this category, Kotak Mahindra Mutual Fund offers 2 schemes the features of
which have been described below:
1. Axis Gold ETF - This is an open-ended gold exchange traded fund that
replicates/tracks the domestic price of gold.
 Investment Objective - To generate returns that are in line with the returns on
investment in physical gold, subject to tracking error.
 Ideal for - Investors who wish to achieve capital gains over a medium and
long term and who prefer to invest in gold securities.
2. Kotak Nifty ETF - This is an open-ended exchange-traded fund and this scheme is
eligible under Rajiv Gandhi Equity Saving Scheme (RGESS) for tax deduction under
section 80 CCG as announced in the union budget 2012-13.
 Investment Objective - To provide returns before expenses that closely
correspond to the total returns of the S&P CNX Nifty subject, to tracking
errors.
 Ideal for - Investors who seek capital gains over medium to long term and
who prefer investing in equity and its associated instruments enclosed in the
Nifty 50 Index.
Fund of funds:
A fund of funds (FOF) – also referred to as a multi-manager investment – is an
investment strategy in which a fund invests in other types of funds. This strategy invests
in a portfolio that contains different underlying assets instead of investing directly in
bonds, stocks and other types of securities. In this Kotak Mahindra Mutual fund offers 4
schemes. They are
1. Kotak Asset Allocator Fund:
Kotak Asset Allocator Fund is an open ended fund of funds scheme. The
investment objective of the scheme is to generate long-term capital appreciation from a
portfolio created by investing in specified open-ended equity, and debt schemes of Kotak
Mahindra Mutual Fund. However, there is no assurance that the investment objective of
the Scheme will be realized.
2. Kotak Gold Fund:
Kotak Gold Fund of Fund is an open ended fund of funds scheme. The investment
objective of the scheme is to generate returns by investing in units of Kotak Gold
Exchange Traded Fund.
3. Kotak US Equity Fund:
The primary investment objective of the scheme is to provide long term capital
appreciation by investing in units of a fund that invests predominantly in equity and
45
equity-related securities of companies having assets, products or operations in the United
States. However, there is no assurance that the objective of the scheme will be realized.
4. Kotak Global Emerging Market Fund:
Kotak Global Emerging Market Fund is an open-ended equity scheme. The
investment objective of the scheme is to provide long-term capital appreciation by
investing in an overseas mutual fund scheme that invests in a diversified portfolio of
securities as prescribed by SEBI from time to time in global emerging markets.

46
 CHAPTER 2,3&4
DATA ANALYSIS
DATA INTERPRETATION

47
COMPARASION BETWEEN
UNDER EQUITY FUNDS
Axis blue chip fund & Kotak blue chip fund.
UNDER DEBT FUNDS
Axis banking and psu debt fund & Kotak banking and psu debt fund.
UNDER BALANCED FUNDS
Axis arbitrage fund & Kotak equity arbitrage fund.
OTHER FUNDS
Axis Nifty ETF & Kotak Nifty ETF.

48
UNDER EQUITY FUND

1) . AXIS BLUE CHIP FUND (REGULAR PLAN – G)

Fund type Open ended

Investment type Growth

Launch date Feb 01,2010

Bench mark NIFTY 50

Asset size Rs 4220.94. Cr (Jan30, 2019)

Minimum investment 5,000

Last dividend N/A

Bonus N/A

Fund manager Shreyash Develkar

NAV: 28.500
RETURN (NAV as on 30th jan 2019)

49
 PERIOD RETURN (%)
1 year 20.3
2 year 18.8
3 year 12.2
4 year 18.9

RETURN
25

20

15

10

0
1 year 2 year 3 yea r 4 yea r
RETURN

ASSET ALLOCATION (%)

ASSET PERCENTAGE(%)

Equity 84.26

Debt 0.35

Other 0.00

Mutual funds 0.00

Money market 0.22

Cash /call 15.17

Analysis and Interpretation:
It is observed that the percentage of return is fluctuating over the years. Initially it is
20.3% in the 1st year, decrease in the 2nd year to 18.8%, and 3rd year decreases to 12.2%,
50
but it is drastically increase in the 4th year of 18.9%. and Investors who are looking to
invest money for at least 3-4 years and looking for high returns. At the same time, these
investors should also be ready for possibility of moderate losses in their investments.

2 ) KOTAK BLUE CHIP FUND (REGULAR PLAN – G)

Fund type Open ended

Investment type Growth

Launch date Dec 29, 1998

Bench mark NIFTY 50

Asset size Rs.1085.59 Cr ( JUN 30, 2018 )

Minimum investment Rs. 5,000

Last dividend Rs.1.00

Bonus NA

Fund manager Harish Krishnan

NAV: 234.982
RETURN (NAV as on 7th August 2018)

PERIOD
RETURN (%)
1 year 9.7
2 year 12.1
3 year 9.0
4 year 18.6

51
 RETURNS

RETURNS

ASSET ALLOCATION :

ASSET PERCENTAGE(%)

Equity 95.76

Debt 0.49

Other 1.66

Mutual fund 0.00

Money market 0.00

Cash /call 2.09

ANALYSIS & INTERPRETATION:

It is observed that the percentage of return is fluctuating over the years. Initially it is
9.7% in the 1st year, increase in the 2nd year to 12.1%, and 3rd year decreases to 9.0%, but
there is a tremdous increase in the 4 th year of 18.6%. and Investors who are looking to
invest money for at least 3-4 years and looking for high returns. At the same time, these
investors should also be ready for possibility of moderate losses in their investments.

52
COMPARISION BEWTEEN ( 1 AND 2)

AXIS BLUECHIP FUND – (REGULAR PLAN-G)

KOTAK BLUECHIP FUND – (REGULAR PLAN-G)

SCHEME AXIS BLUE CHIP KOTAK BLUE CHIP

FUND(G) FUND(G)
FUND CLASS LARGE CAP LARGE CAP

FUND TYPE OPEN ENDED OPEN ENDED

SCHEME ASSET IN CR 4220.92 Cr 1085.59 Cr

INCEPTION DATE FEB 01,2010 DEC 29,1998

BENCH MARK NIFTY 50 NIFTY 50

MIN INVESTMENT 5000 5000

AMC/FUND FAMILY AXISASSET KOTAK MAHINDRA ASSET

MANAGEMENT MANAGEMENT COMPANY
COMPANY LTD LTD
AMC ASSET 77,325.41 Cr 7911 Cr

BETA VALUE 0.87 0.95

ALPHA VALUE 1.89 -1.73

STANDARD DEVIATION 12.99 13.52

SHARPE RATIO 0.50 0.48

LATEST NAV (AUG 10th 28.56 235.22

2018)
RETURN (IN 4 YR) 18.69% 18.37

RANK 12/61 15/61

53
Analysis and interpretation:

The nature of these two funds namely Axis blue chip fund (regular plan-g) and
Kotak blue chip fund (regular plan-g) are equity mutual fund with a growth option. All
these equity funds are ranked by CRISIL and minimum investment for Axis blue chip
fund and Kotak blue chip fund is 5000.

AMC of Axis blue chip fund (regular plan-g) is 77,325.41 Cr and Kotak blue chip fund
(regular plan-g) is 7911 Cr

Sharpe ratio:
Sharpe ratio of axis blue chip fund is 0.50 and Kotak blue chip fund is 0.48 compare these
companies axis blue chip fund having more ratio than the Kotak blue chip fund, so it has
been able give had better return the amount of risk.

Standard deviation:

Standard deviation of axis blue chip fund is 12.99 and Kotak blue chip fund is 13.52
compare these two companies axis blue chip fund having less than the Kotak blue chip
fund, so it indicates more predictable so higher chance of axis blue chip fund will
continue giving similar returns in future also.

Beta:

Beat of axis blue chip is 0.87 and Kotak blue chip fund beta is 0.95 compare these two
companies axis blue chip fund gives more performance because it is low beta

Kotak blue chip fund (regular plan-g) having high ratio i.e., (risk adjusted return)
when compared to Axis blue chip fund.

54
UNDER DEBT FUNDS

1. AXIS BANKING & PSU DEBT FUND (REGULAR PLAN-G)

Fund type Open ended

Investment type Growth

Launch date June 08, 2012

Bench mark CRISIL Short Term Bond Fund

Asset size Rs.179.06 Cr( January 31, 2019 )

Minimum investment 5000

Last dividend N.A

Bonus N.A

Fund ,manager Aditya Pagaria

NAV: 1,633.921
RETURN (NAV as on 7th August 2018)

PERIOD
RETURN (%)
1 year 6.1
2 year 7.1
3 year 7.5
4 year 8.3

55
 RETURNS

RETURNS

ASSET ALLOCATION
ASSET PERCENTAGE(%)

Equity 0.00

Debt 92.55

Other 0.00

Mutual fund 0.00

Money market 0.00

Cash / call 7.45

ANALYSIS & INTERPRETATION:

56
The nature of the fund is debt mutual fund with a growth option. This was launched on
June 08,2012 with a benchmark being CRISIL short term bond fund, the fund rated as
good by CRISIL. The minimum investment in the scheme is Rs.5000 and at present
Rs.179.06 Crs of fund is under asset management there is no entry load for the fund and
exit load is zero. As the nature of mutual fund is debt mutual fund the total asset
allocation is being invested in debt securities with 92.55% in government securities and
the remaining 7.45 in cash/call.

The NAV of the fund is RS. 1,633.921during 30 th January 2018 and has fluctuated
during the period of the study.

57
2. KOTAK BANKING & PSU DEBT FUND( REGULAR PLAN-G)

Fund type Open ended

Investment Type Growth

Launch date Jan 01, 1999

Bench mark CRISIL short term bond fund

Asset size Rs.205.92 Cr ( March 31, 2019 )

Minimum investment RS 5,000

Last dividend NA

Bonus NA

Fund manager Crisil short term bond fund index

NAV: 39.788
RETURN (NAV as on 7th August 2018)

PERIOD RETURN (%)

1 year 4.3
2 year 6.8
3 year 7.5
4 year 8.7

58
 RETURNS

RETURNS

ASSET ALLOCATION
ASSET PERCENTAGE(%)

Equity 0.00

Debt 87.97

Other 0.00

Mutual fund 0.00

Money market 0.48

Cash / call 11.55

ANALYSIS & INTERPRETATION:

59
The nature of the fund is debt mutual fund with a growth option. This was launched on
Jan 01,1999 with a benchmark being CRISIL short term bond fund, the fund rated as
good by CRISIL. The minimum investment in the scheme is Rs.5000 and at present
Rs.205.92 Crs of fund is under asset management there is no entry load for the fund but
has an exit load. As the nature of mutual fund is debt mutual fund the total asset allocation
is being invested in debt securities with 87.97% and the remaining11.55% in cash/call and
0.48% in money market.

The NAV of the fund is Rs. 39.788 during 30 th January 2018 and has fluctuated
during the period of the study.

COMPARISION BETWEEN (1 AND 2)

60
AXIS BANKING AND PSU DEBT FUND (REGULAR PLAN-G)
KOTAK BANKING AND PSU DEBT FUND(REGULAR PLAN-G)
SCHEME AXIS BANKING &PSU KOTAK BANKING AND
DEBT FUND(REGULAR PSU DEBT
PLAN-G) FUND(REGULAR PLAN-
G)
FUND CLASS BANKING AND PSU BANKING AND PSU FUND
FUND
FUND TYPE OPEN ENDED OPEN ENDED
SCHEME IN ASSET CR 179.06 Cr 205.92 Cr
INCEPTION DATE JUN 08,2012 JAN 01,1999
BENCH MARK CRISIL short term bond CRISIL short term bond fund
fund
MIN INVESTMENT 5000 5000

AMC / FUND FAMILY AXIS ASSET KOTAK MAHINDRA

MANAGEMENT ASSET MANAGEMENT
COMPANY LTD COMPANY LTD
AMC ASSET 77,325.41 Cr 7911 Cr
LATEST NAV(AUG 10th 1,636.298 39.830
2018)
BETA VALUE 2.06 3.84
ALPHA VALUE 5.23 9.13
STANDARD DEVIATION 0.84 1.73
SHARPE RATIO 0.90 0.46
RETURN 8.33 8.63
( IN 4 YEAR)
RANK 3/7 6/14

Analysis and interpretation:

The nature of these two funds namely Axis banking and PSU debt fund (regular
plan-g) and Kotak banking and PSU debt fund (regular plan-g) are debt funds with a
growth option. All these debt funds are ranked by CRISIL and minimum investment for
Axis banking and PSU debt fund and Kotak banking and PSU debt fund is 5000.

61
AMC of Axis banking and PSU debt fund (regular plan-g) is 77,325.41 Cr and Kotak
banking and PSU debt fund (regular plan-g) is 7911 Cr.
Sharpe ratio of Axis banking and PSU debt fund is 0.90 and Kotak banking and
PSU debt fund is 0.46. Standard deviation for Axis banking and PSU debt fund is 0.84
and Kotak banking and PSU debt fund is 1.73.

Sharpe ratio:
Sharpe ratio of Axis banking and PSU debt fund is 0.90 and Kotak banking and PSU debt
fund is 0.46. Compare these companies axis banking and PSU debt fund having more
ratio than the Kotak banking and debt fund, so it has been able give had better return the
amount of risk.

Standard deviation:

Standard deviation for Axis banking and PSU debt fund is 0.84 and Kotak banking and
PSU debt fund is 1.73 compare these two companies axis banking and PSU debt fund
having more than the Kotak banking and PSU debt fund, so it indicates more predictable
so higher chance Kotak banking and PSU debt fund will continue giving similar returns in
future also.

Beta:

Beat of axis banking and PSU debt fund is 2.06 and Kotak banking and PSU debt fund
beta is 3.84 compare these two companies axis banking and PSU debt fund gives more
performance because it is low beta

Kotak banking and PSU debt fund (regular plan-g) having high ratio i.e.,(risk
adjusted return) when compared to Axis banking and PSU debt fund.

UNDER BALANCED
1. AXIS ARBITRAGE FUND(REGULAR PLAN-G)

62
 Fund type Open ended

Investment Type Growth

Launch date April 08,2014

Bench mark CRISIL liquid fund

Asset size Rs. 1048.52 Cr ( January 31,

2019 )

Minimum investment Rs 5000

Last dividend N.A

Bonus N.A

Fund manager Ashwin Patni / Devang Shah

NAV: 12.861
RETURN (NAV as on 30th January 2018)

PERIOD RETURN (%)

1 year 5.9
2 years 6.0
3 years 6.0
4 years 6.2

63
 RETURNS

RETURNS

ASSET ALLOCATION:
Asset PERCENTAGE(%)

Equity 65.82

Debt 24.55

Other -65.82

Mutual fund 0.00

Money market 12.74

Cash / call 62.71

64
ANALYSIS & INTERPRETATION:

The nature of the fund is balanced mutual fund with a growth option. This was launched
on APRIL 08, 2014 with a benchmark being CRISIL Liquid fund, the fund rated as good
by CRISIL, The minimum investment in the scheme is Rs.5000 and at present Rs.1048.52
cr. of fund is under asset management there is no entry load for the fund but has an exit
load.
As it is balanced fund it is invests in equity and debt. The allocation of fund for
equity is 65.82 and debt is 24.55 and remaining 62.71% in cash/call and has fluctuated
during the period of the study.

65
1. KOTAK EQUITY ARBITRAGE FUND(REGULAR PLAN-G)

Fund type Open ended

Investment type Growth

Launch date Sep 21,2005

Bench mark CRISIL Liquid fund

Asset size Rs. 4924.02 Cr (January 30, 2019)

Minimum investment Rs 5000

Last dividend NA

Bonus NA

Fund manager Deepak Gupta

NAV: 25.359
RETURN (NAV as on 30th January 2019)

PERIOD RETURN (%)

1 year 6.1
2 years 6.1
3 years 6.2
4 years 7.4

66
 RETURNS

RETURNS

ASSET ALLOCATION:

ASSET PERCENTAGE(%)

Equity 65.24

Debt 20.27

Other -65.25

Mutual fund 8.32

Money market 3.91

Cash / call 67.51

ANALYSIS & INTERPRETATION:

67
The nature of the fund is balanced mutual fund with a growth option. This was launched
on SEP 21,2005 with a benchmark being CRISIL Liquid fund, the fund rated as good by
CRISIL, The minimum investment in the scheme is Rs.5000 and at present Rs.4924.02
Crs of fund is under asset management there is no entry load for the fund but has an exit
load.

The NAV of the fund is Rs.25.359 during 30th January 2019 and has fluctuated
during the period of the study.

68
COMPARATION BETWEEN (1 AND 2)
1 AXIS ARBITRAGE FUND(REGULAR PLAN – G)
2 KOTAK EQUITY ARBITRAGE FUND(REGULAR PLAN – G)
SCHEME AXIS ARBITRAGE KOTAK EQUITY ARBITRAGE
FUND(REGULAR PLAN – FUND(REGULAR PLAN –G)
G)
FUND CLASS Arbitrage fund Arbitrage fund

FUND TYPE Open ended Open ended

SCHEME IN ASSET 1048.52 Cr 4925.02 Cr

INCEPTION DATE April 08,2014 Sep 21,2005

BENCH MARK CRISIL Liquid fund CRISIL Liquid fund

MIN INVESTMENT 5000 5000

AMC / FUND FAMILY AXIS ASSET KOTAK MAHINDRA ASSET

MANAGEMENT MANAGEMENT COMPANY
COMPANY LTD LTD
AMC ASSET 77,325.41 Cr 7911 Cr

BETA VALUE 0.71 0.83

ALPHA VALUE 1.02 1.46

STANDARD 0.53 0.36

DEVIATION
SHARPE RATIO -1.02 0.97

LATEST NAV (AUG 12.875 25.386

10th 2018)
RETURN ( IN 4 6.2% 7.36%
YEARS)
RANK 10/15 1/10

ANALYSIS AND INTERPRETATION:

69
 The nature of two funds are namely Axis arbitrage fund (regular plan - g)
and Kotak equity arbitrage fund (regular plan – g) are balanced mutual fund with growth
option and all three funds are ranked by CRISIL.
Minimum investment of Axis arbitrage fund and Kotak equity arbitrage fund is RS.5000.
AMC of Axis arbitrage fund (regular plan-g) is 77,325.41 Cr. and Kotak equity arbitrage
fund (regular plan – g) is 7911 cr.
Sharpe ratio of Axis arbitrage fund is -1.02 and Kotak equity arbitrage fund is -0.97.
Kotak equity arbitrage fund having high Sharpe ratio (risk adjusted return) when
compared to Axis arbitrage fund.

OTHER FUNDS

70
1. AXIS GOLD FUND (REGULAR PLAN-G)

Fund type Open ended

Investment type Growth

Launch date Oct 20,2011

Bench mark Price of gold

Asset size RS. 50.33 Cr (January 31, 2019)

Minimum investment RS 5000

Last dividend NA

Bonus NA

Fund manager Anurag Mittal

NAV: 9.481
RETURN (NAV as on 30th January 2019)

PERIOD RETURN (%)

1 year 4.7
2 years - 4.7
3 years 3.4
4 years -1.2

71
 RETURNS

RETURNS

ASSET ALLOCATION:

ASSET PERCENTAGE (%)

Equity 0.00

Debt 0.00

Other 0.00

Mutual fund 100.19

Money market 0.00

Cash / call 0.19

72
ANALYSIS & INTERPRETATION:

The nature of the fund is opened ended mutual fund with a growth option. This was
launched on OCT 20, 2011 with a benchmark being price of gold, the fund rated as good
by CRISIL, The minimum investment in the scheme is Rs.5000 and at present Rs.50.33
Cr. of fund is under asset management there is no entry load for the fund but has an exit
load.

The NAV of the fund is Rs.9.481 during 30 th Jan 2019 and has fluctuated during
the period of the study.

73
2. KOTAK GOLD FUND (REGULAR PLAN-G)

Fund type Open ended

Investment type Growth

Launch date March 18,2011

Bench mark Price of gold

Asset size RS. 158.71 Cr (January 30, 2019)

Minimum investment RS. 10000

Last dividend NA

Bonus NA

Fund manager Abhishek Bisen

NAV: 12.434
RETURN (NAV as on 30 january2019)

PERIOD RETURN (%)

1 year 4.0
2 years - 3.3
3 years 4.8
4 years -0.4

74
 RETURNS

RETURNS

ASSET ALLOCATION:

ASSET PERCENTAGE (%)

Equity 0.00

Debt 0.00

Other 0.00

Mutual fund 99.35

Money market 0.00

Cash / call 0.65

ANALYSIS & INTERPRETATION:

The nature of the fund is open ended mutual fund with a growth option. This is launched
on MARCH 18,2011with a benchmark being Price of gold, the fund rated as good by
CRISIL, The minimum investment in the scheme is Rs.10000 and at present Rs.158.71 Cr
of fund is under asset management there is no entry load for the fund but has an exit load.
The NAV of the fund is Rs.12.424 during 30 January 2019 and has fluctuated during the
period of the study.

75
 COMPARATION BETWEEN (1 AND 2)
1 AXIS GOLD FUND(REGULAR PLAN –G)
2 KOTAK GOLDFUND(REGULAR PLAN – G)
SCHEME AXIS GOLD FUND(REGULAR KOTAK GOLD
PLAN – G) FUND(REGULAR PLAN –
G)
FUND CLASS Fund of funds Fund of funds

FUND TYPE Open ended Open ended

SCHEME IN ASSET 50.33 Cr 158.71 Cr

INCEPTION DATE Oct 20,2011 March 18, 2011

BENCH MARK Price of gold Price of gold

MIN INVESTMENT 5000 10000

AMC / FUND FAMILY AXIS ASSET MANGEMENT KOTAK MAHINDRA ASSET

COMPANY LTD MANAGEMENT COMPANY
LTD
AMC ASSET 77,325.41 Cr 7911 Cr

BETA VALUE 1.16 0.98

ALPHA VALUE - 2.25 - 1.06

STANDARD 14.56 12.18

DEVIATION
SHARPE RATIO - 0.16 - 0.09

LATEST NAV (AUG 10th 9.381 12.381

2018)
RETURN ( IN 4 YEAR) - 1.55% - 0.73%

RANK 22/22 20/22

ANALYSIS AND INTERPRETATION:

76
 The Axis gold fund and Kotak gold fund are fund of funds with growth option and
these two funds is ranked by CRISIL.
Minimum investment of Axis gold fund is Rs.5000 and Kotak gold fund is Rs.10000.
AMC of Axis gold fund is 77,325.41 Cr and Kotak gold fund is7911 Cr.
Sharpe ratio of Axis gold fund is – 0.16 and Kotak gold fund is -0.09.
Kotak gold fund having high Sharpe ratio (risk adjusted return) when compared to Axis
gold fund.

77
 CHAPTER -5
Findings

FINDINGS

 EQUITY FUNDS :
 Axis blue chip fund (regular plan-g) beta value of 0.87 and Kotak blue chip
fund(regular plan - g) having beta value of 0.95.
 Sharpe ratio of Axis blue chip fund is 0.50 and Kotak blue chip fund is 0.48.
78
 Kotak blue chip fund(regular plan- g) having high sharpe ratio of 0.48 when
compared to Axis blue chip fund(regular plan- g).
 DEBT FUNDS:
 Beta value of Axis banking and psu debt fund is 2.06 and Kotak banking and psu
debt fund is 3.84.
 Sharpe ratio of Axis banking and psu debt fund(regular plan - g) is 0.90 and Kotak
banking and psu debt fund(regular plan-g) is 0.46.
 Kotak banking and psu debt fund(regular plan-g) is having high sharpe ratio of
0.46 when compared to axis banking and psu debt fund (regular plan-g).
 BALANCED FUND :
 Beta value of Axis arbitrage fund(regular plan-g) is 0.71 and Kotak equity
arbitrage fund(regular plan-g) is 0.83.
 Sharpe ratio of Axis arbitrage fund(regular plan-g) is -1.02 and Kotak equity
arbitrage fund(regular plan-g) is -0.97
 Kotak equity arbitrage fund(regular plan-g) having high sharpe ratio of -0.97
when compared to axis arbitrage fund.
 OTHER FUNDS:
 Beta value of Axis gold fund (regular plan-g) is 1.16 and Kotak gold fund(regular
plan-g) is 0.98.
 Sharpe ratio of Axis gold fund(regular plan-g) is -0.16 and Kotak gold
fund(regular plan-g) is -0.09.
 Kotak gold fund(regular plan-g) having high sharpe ratio of -0.09when compared
to axis gold fund.

79
 Chapter -6
Suggestion and Conclusion

80
SUGGESTIONS

TO MUTUAL FUND COMPANIES

 Disclosure of risk – funds should disclose the level of risk associated with
investment in the fund return in offer documents.
 While investing the agent /sales men should clearly explain the investors all the
features both positive as well as negative associated with fund.
 The details both facts and figures should be in English and the figures must be
explained.
 The fact books may be printed in regional languages so that penetration in rural
areas may be achieved.
 Along with internet access the customers queries about any schemes should be
answerable.
 Educating the public and investors through workshops and seminars.

TO THE INVESTORS

 Understand the purpose of investment first analyze before investing in a fund is to

find out wether the objective matches with the scheme.
 The investors ith less risk tolerance should go for debt scheme , as they are
relatively safer when compared to equity.
 Investors should go through the scheme’s track record , performance against
relevant market benchmark and its competitors.
 Investor should look at expense ratio of fund before investing.
 One can buy units at par, however,it is not advantage to buy a mutual fund during
NFO. Should wait and see the performance before investing in it.

81
CONCLUSION:

Mutual funds now represent perhaps most appropriate investment opportunity for
most investors. As financial markets become more sophisticated and complex, investors
need a financial intermediary who provides the required knowledge and professional
expertise on successful investing. As the investor always try to maximize the returns and
minimize the risk. Mutual Fund satisfies these requirements by providing attractive
returns with affordable risks. The fund industry has already overtaken the banking
industry, more funds being under mutual fund management than deposited with banks.
With the emergence of tough competition in this sector mutual funds are launching a
variety of schemes which caters to the requirement of the particular class investors. Risk
takers for getting capital appreciation should invest in growth, equity schemes. Investors
who are in need of regular income should invest in income plans.

Axis Mutual Fund and Kotak Mahindra Mutual Fund are performing good with
their net asset values and the prices of each is fluctuating day by day i.e., increase or
decrease. From this two mutual funds Kotak Mahindra Mutual Fund is good to the initial
investors to get a lumpsum returns over a period of time. The initial investment is
minimum of 5000 which is affordable to the middle income group people. Sharpe Ratio is
high for Kotak Mahindra Mutual fund compared to Axis Mutual Fund.

Mutual funds provide major benefits to common man who wants to make his life better
than previous.

“If mutual funds succeed in chipping away at bank deposits, even a triple digit
growth is possible over the next the few years

82
BIBLIOGRAPHY

BOOKS REFERRED

 The Economic Times

 Factsheet and statements of axis bank and Kotak Mahindra bank
 NISM book

WEBSITES

 WWW.NSEINDIA.COM
 WWW.MONEYCONTROL.COM
 WWW.INDIAINFOLINE.COM
 WWW.EQUITYMASTER.COM
 WWW.BSEINDIA.COM
 WWW.SEBI.GOV.IN
 WWW.FINANCIALEXPRESS.COM
 WWW.VALUERESEARCHONLINE.COM
 WWW.ECONOMICSTIMES.COM
 WWW.BANKBAZAAR.COM
 WWW,VALUREASERCH.COM

83
84
85