Performence of mutual fund by. karan gujrati

1
DISSERTATION PROJECT REPORT
ON
“PERFORMANCE MUTUAL FUNDS”
Submitted to the Deptt. Of Business Administration
Under the Guidance of
Dr. Mayank Malviya
By
Karan Gujrati
Session: 2015-17

2
ACKNOWLEDGEMENT
Before we get into thick of things. I would like to add a few words of
appreciation for the people who have been a part of this project right from its
inception. The writing of this project has been one of the significant academic
challenges I have faced and without the support, patience and guidance of the
people involved, this task would not have been completed. It is to them I owe
my deepest gratitude.
It gives me immense pleasure in presenting this project report on
“Performance of Mutual Fund”. It has been my privilege to have a team of
project guide who have assisted me from the commencement of this project.
The success of this project is a result of sheer hard work, and determination
put in by me with the help of my project guide. I hereby take this opportunity
to add a special note of thanks for Dr. Mayank Malviya, who undertook to act
as my mentor despite his many other academics and professional
commitments. His wisdom, knowledge and commitment to the highest
standardsinspired and motivated me. Without his insight, supportand energy
this project wouldn’t have kick started and neither would have reached
fruitfulness.
I also felt heartiest sense of obligation to my library staff members and
seniors, who helped me in collection of data and resource material and also in
its processing as well as drafting manuscript. The project is dedicated to all
those people, who helped me while doing this project.

3
DECLARATION
I hereby declare the project work entitled “Performance of Mutual Funds”
submitted to the Shambhunath Institute of Management, Allahabad (Dr. APJ
Abdul Kalam Technical University) is a record of an original work done by me
under the guidance of Dr. Mayank Malviya, Assistant Professor of Master of
Business Administration department, and this project work is submitted in
the partial fulfillment of the requirements for the award of the degree of
Master of Business Administration in Finance.
The results embodied in this thesis have not been submitted to any other
University or Institute for the award of any degree or diploma.
Karan Gujrati
Roll No. 1572770011

4
Table of Contents
 Acknowledgement
 Declaration
S. No. Contents Page No.
1. Executive Summary 5
2. Literature Review 7
3. Introduction to the Mutual Fund 10
4. History Of Mutual Fund 13
5. Advantages of Mutual Funds 16
6. Disadvantages of Mutual Funds 17
7. Types of Mutual Fund Scheme 18
8. Working of Mutual Fund 21
9. Research Methodology 22
10. 5 ways to measure Mutual Fund Risk 24
11. Overview and Analysis 28
12. Types of Funds taken for Analysis 44
13. Analysis and Interpretation of Largecap funds 49
14. Analysis and Interpretation of Midcap Funds 56
15. Analysis and Interpretation of Smallcap Funds 63
16. Analysis and Interpretation of Sector Funds 70
17. Analysis and Interpretation of Diversified Funds 76
18. Findings 83
20. Suggestion and Recommendation 84
21. Conclusion 85
22. Bibliography 86

5
Executive summary
Mutualfund isa scheme where many peopleinvest for a common cause that is
to get returns. The money is collected for the investors and is invested in
capital market and the returns are divided on the basis of units an individual
possess.
In this project I have covered the performance of mutual funds as mutual
fund.
Also the study is conducted to observe that why people do not invest in
mutual funds as the major disadvantage of mutual funds that it contains
hidden cost like processing fees, purchase fees, exchange fees, Management
fees, over diversification possible tax consequences, and the inability of
management to guarantee a superior return.
And the major advantages of investing in any of the mutual fund scheme are
professional management and the liquidity. Mutual funds instead of giving
high liquidity and a good managementof fundspeopledo notwant to investin
mutual funds.
Mutual funds are very easy to buy and sell off. One can directly approach the
fund company and their broker to assist them in purchase and sale of the
mutual funds. Unlike share prices fluctuate continuously the NAV of the
mutual funds also do. Before investing in any of the funds one should do a
proper study of the scheme and must go through its objective, risk associated
with it, the overall of that particular scheme and the fund’s manager track
record. One should read the overall offer documents clearly as they are also
subjected to market risk.
There are many types of mutual funds. You can classify funds based structure
(Open ended and close ended), Nature (equity, debt, balanced), Investment
objective (growth, income, money market, etc.).

6
One of the most important trends which mutual funds have observed was the
aggressive expansion of foreign owned companies and decline of private
sectors and nationalized banks.
Mutual funds are regulated by SEBI and numerous of developments and
enhancements to the regulatory frameworks.
Mutualfundsindustryis currently witnessing losses about 33 lakhs investors,
measured in terms of individualaccountsor folios. This is the fifth consecutive
year of loss of folios by mutual funds.

7
Literature Review
M.S.ANNAPOORNA AND PRADEEP K. GUPTA
Professor and Director, SVMVV Institute of Management Studies,'
Mahnantha Gangothri Campus, ILKAL.
Asst. Professor, BLDEA's, A. S. Patil College of Commerce,
(MBA Programme), Bijapur, Karnataka.
Abstract:
Mutual fund industry has experienced a drastic growth in the past two
decades. Increase in the number of schemes with increased mobilization of
funds in the past few years notes the importance of Indian mutual funds
industry. To fulfill the expectations of millions of retail investors, the mutual
funds are required to function as successful institutional investors. Proper
assessment of various fund performance and their comparison with other
funds helps retail investors for making investment decisions. The main aim of
this paper is to evaluate the performanceof mutualfund schemes ranked 1 by
CRISILand compare these returns with SBI domestic term deposit rates.
Considering the interest of retail investors simple statistical techniques like
averages and rate of returns are used. The results obtained from the study
clearly depicts that, in most of the cases the mutual fund schemes have failed
even to provide the return of SBI domestic term deposits.
KEYWORDS: Performance, Mutual Funds, CRISIL, Credit Rating Agency
REVIEW OF LITERATURE Ippolito R. A. (1992) concluded that the investors
prefer mutual funds which have a record of positive return in the past [3].
Sapar & Narayan(2003) evaluates the performance of 269 open ended
schemes of mutual funds in a bear market using relative performance index,

8
risk-return analysis, Treynor's ratio, Sharp's ratio, Sharp's measure, Jensen's
measure, and Fama's. The results obtained advocate that most of the mutual
fund schemes in the sample outperformed the investor's expectations by
giving excess return over expected return based on premium for systematic
risk and total risk[5]. Sathya Swaroop Debasish (2009) studied the
performance of 23 schemes offered by six private sector mutual funds and
three public sector of mutual funds based on risk-return relationship models
and measuresit over the time period of 13 years (April 1996 to March 2009).
The analysis has been made on the basis of mean return, beta risk, co-efficient
of determination, Sharpe ratio, Treynor ratio and Jensen Alpha. The overall
analysisconcludesFranklin Templeton and UTI being the best performersand
Birla SunLife, HDFC and LIC mutual funds showing below-average
performance when measured against the risk-return relationship models [5].
Dhume and Ramesh (2011) conducted a study to analyze the performance of
the sector funds. The sectors considered were Banking, FMCG, Infrastructure,
Pharma and Technology. The study used different approaches of performance
measures. Findings of study revealed that all the sector funds have
outperformed the market except infrastructure funds [7]. Deepak Agarwal
(2011), Mutual fund contributes to globalization of financial markets and is
one among the main sources for capital formation in emerging economies. He
analyzed the pricing mechanism of Indian Mutual Fund Industry, data at both
the fund-manager and fund-investor levels. There has been incredible growth
in the mutual fund industry in India, attracting large investments from
domestic and foreign investors. Tremendous increase in number of AMCs
providingampleof opportunity to the investors in the form of safety, hedging,
arbitrage, limited risk with better returns than any other long-term securities
has resulted in attracting more investors towards mutual fund investments
[1]. R. Anitha, et. al., (2011), in their study evaluated the performance of
public-sector and privatesector mutual funds for the period from 2005 to
2007. Selected funds were analyzed using Statistical tools like Mean, Standard
Deviation and Co-efficient of Variation. The performance of all funds has
shown volatility during the period of study making it difficult to earmark one
particular fund which could outperform the other consistently [2]. Kalpesh
PPrajapati and Mahesh K Patel (2012) evaluated the performance of Indian

9
mutualfundsusingrelativeperformanceindex, risk-return analysis, Treynor's
ratio, Sharp's ratio, Sharp's measure, Jensen's measure, and Fama's measure.
The data used is daily closing NAVs from 1st January 2007 to 31st December,
2011 and concluded that most of the mutual funds have given positive return
during the period of study [6]. Shivani Inder and Shikha Vohra (2012), the
paper evaluates the long run performance of the selected index fund schemes
and make comparativeanalysis of the performance of these funds on the basis
of the risk-return for the period of 6 years (January, 2005 to December, 2011).
The results indicate that index A COMPARATIVE ANALYSIS OF RETURNS OF
MUTUALFUND SCHEMESRANKED 1 BY CRISILTactfulManagementResearch
Journal • Volume 2 Issue 1 • Oct 2013 2 funds are just the follower of market.
They try to capture market sentiments, good as well as bad, and thus perform
as the market performs [9]. P Alekhya (2012), undertaken the study to
evaluate the comparative performance of public and private sector mutual
fund schemes. The paper focused on the performance of Mutual fund equity
scheme for past 3 years from 2009 to 2011. Funds were ranked according to
Sharpes, Treynors and Jensons performance measure [4].

10
INTRODUCTION TO THEMUTUAL FUND
Mutualfund is trust that pools the savings of a number of investors who share
a common financial goal. This pool of money is invested in accordance with a
stated objective. The joint ownership of the fund is thus “Mutual”, i.e. the fund
belongs to all investors. The money thus collected is then invested in capital
market instruments such as shares, debentures and other securities. The
income earned through these investments and the capital appreciations
realized are shared by its unit holders in proportion the number of units
owned by them. Thus a mutual fund is the most suitable investment for the
common man as it offers an opportunity to invest in a diversified,
professionally managed basket of securities at a relatively low cost. A Mutual
Fund is an investment tool that allows small investors access to a well-
diversified portfolio of equities, bonds and other securities. Each shareholder
participates in the gain or loss of the fund. Units are issued and can be
redeemed as needed. The fund’s Net Asset Value (NAV) is determined each
day.
These securities are spread across a wide cross-section of industries and the
sectors and thus the risk is reduced. Diversification reduces the risk because
all stocks may not move in the same direction in the same proportion at the
same time. Mutual fund issues units to the investors in accordance with

11
quantum of money invested by them. Investors of mutual fund are known as
unit holders. When an investors subscribes for the units of a mutual fund, he
becomes part owner of the assets of the fund in the same proportion as his
contribution amount put up with the corpus (the total amount of the fund).
Mutual Fund investor is also known as a mutual fund shareholder or a unit
holder. Any change in the value of the investments made in the Net Asset
Value (NAV) of the scheme. NAV is defined as the market value of the Mutual
Fund Scheme’s assets net of its liabilities. NAV of a scheme calculated by
dividing the market value of scheme’s assets by the total number of units
issued to the investors.
Definition:
“Mutualfundsarecollectivesavingsandinvestment vehicles where savings of
small (or sometimes big) investors are pooled together to invest for their
mutual benefit and returns distributed proportionately”
“A mutualfund isan 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 asset is invested according to an
investment objective into the fund’s portfolio of investments. Aggressive
growth fundsseek long term capital growth by investingprimarily in stocks of
fast growing smaller companiesor market segments. Aggressivegrowth funds
are also called capital appreciation fund”.
Why we select Mutual Fund?
The risk return trade-off indicates that if investor is willing to take
higher risk then correspondingly he can expect higher return 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

12
invest in capital protected fundsand 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
fund investments risk free.
This is because the money that is pooled in are not invested only in
debts funds which are less riskier but 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 derivatives
markets which are considered very volatile.
Risk Return Matrix
HIGHER RISK
MODERATE REURNS
HIGHER RISK
HIGHER RETURNS
LOWER RISK
LOWER RETURNS
LOWER RISK
HIGHER RETURNS
Venture
Capital
Equity
Bank
FD
Postal
Savings
Mutual
Funds

13
History of Mutual Fund in India:
The mutual fund industry in India started in 1963 with the formation of Unit
Trust of India (UTI) at the initiative of the ReserveBank of India(RBI) and the
Government of India. The objective then was to attract small investors and
introducethem to market investments. Since then, the history of mutualfunds
in India can be broadly divided into six distinct phases:
Phase I (1964-87): Growth Of UTI:
In 1963, UTI was established by an Act of Parliament. As it was the only entity
offering mutual funds in India, it had a monopoly. Operationally, UTI was set
up by the Reserve Bank of India (RBI), but was later delinked from the RBI.
The first scheme, and for long one of the largest launched by UTI, was Unit
Scheme 1964. Later in the 1970s and 80s, UTI started innovating and offering
different schemes to suit the needs of different classes of investors. Unit
Linked Insurance Plan (ULIP) was launched in 1971. The first Indian offshore
fund, India Fund was launched in August 1986. In absolute terms, the
investible funds corpus of UTI was about Rs 600 crores in 1984. By 1987-88,
the assets under management (AUM) of UTI had grown 10 times to Rs 6,700
crores.
Phase II (1987-93): Entry of Public Sector Funds:
The year 1987 marked the entry of other public sector mutual funds. With the
opening up of the economy, many public sector banks and institutions were
allowed to establish mutualfunds. The State Bank of India established the first
non-UTIMutualFund, SBI MutualFund in November 1987. This was followed

14
by Canbank MutualFund, LIC MutualFund, Indian Bank Mutual Fund, Bank of
IndiaMutualFund, GIC MutualFund and PNB Mutual Fund. From 1987-88 to
1992-93, theAUM increased from Rs 6,700 crores to Rs 47,004 crores, nearly
seven times. Duringthis period, investorsshowed a marked interest in mutual
funds, allocating a larger part of their savings to investments in the funds.
Phase III (1993-96): Emergence of Private Funds:
A new era in the mutual fund industry began in 1993 with the permission
granted for the entry of private sector funds. This gave the Indian investors a
broader choice of 'fund families' and increasing competition to the existing
public sector funds. Quite significantly foreign fund management companies
were also allowed to operate mutual funds, most of them coming into India
through their joint ventures with Indian promoters. The private funds have
brought in with them latest product innovations, investment management
techniques and investor-servicing technologies. During the year 1993-94, five
private sector fund houses launched their schemes followed by six others in
1994-95.
Phase IV (1996-99): Growth and SEBI Regulation:
Since 1996, the mutual fund industry scaled newer heights in terms of
mobilization of funds and number of players. Deregulation and liberalization
of the Indian economy had introduced competition and provided impetus to
the growth of the industry. A comprehensive set of regulations for all mutual
funds operating in India was introduced with SEBI (Mutual Fund)
Regulations, 1996. These regulations set uniform standards for all funds.
Erstwhile UTI voluntarily adopted SEBI guidelines for its new schemes.
Similarly, the budget of the Union government in 1999 took a big step in
exempting all mutual fund dividends from income tax in the hands of the

15
investors. During this phase, both SEBI and Association of Mutual Funds of
India (AMFI) launched Investor Awareness Programme aimed at educating
the investors about investing through MFs.
Phase V (1999-2004): Emergence of a Large and Uniform Industry:
The year 1999 marked the beginning of a new phase in the history of the
mutual fund industry in India, a phase of significant growth in terms of both
amount mobilized from investors and assets under management. In February
2003, the UTI Act was repealed. UTI no longer has a special legal status as a
trust established by an act of Parliament. Instead it has adopted the same
structure as any other fund in India - a trust and an AMC. UTI Mutual Fund is
the present name of the erstwhile Unit Trust of India (UTI). While UTI
functioned under a separate law of the Indian Parliament earlier, UTI Mutual
Fund is now under the SEBI's (Mutual Funds) Regulations, 1996 like all other
mutual funds in India. The emergence of a uniform industry with the same
structure, operations and regulations make it easier for distributors and
investorsto dealwith any fund house. Between 1999 and 2005 the size of the
industry hasdoubled in terms of AUM which have gone from above Rs 68,000
crores to over Rs 1, 50,000 crores.
Phase VI (From 2004 Onwards): Consolidation and Growth:
The industry has lately witnessed a spate of mergers and acquisitions, most
recent ones being the acquisition of schemes of Allianz Mutual Fund by Birla
Sun Life, PNB MutualFund by Principal, among others. At the same time, more
international players continue to enter India including Fidelity, one of the
largest funds in the world.

16
Advantages of Mutual Fund:
 Professional Management:
The basic advantage of fundsis that, they are professionally managed
by well qualified professional. Investorspurchasefundsbecause they
do not have the time or the expertise to manage their own portfolio.
 Portfolio Diversification:
Purchasing units in mutual funds instead of buying individual stocks
or bonds, the investors risk is spread out and minimized up to
certain extent. The idea behind diversification is to invest in a large
number of assets so that a loss in any particular investment is
minimized by gains in others.
 Economies of Scale:
Mutual fund buy and sell large amounts of securities at a time, thus
help to reducing transaction costs, and help to bring down the
average cost of the unit for their investors.
 Liquidity:
Just like an individual stock, mutual fund also allows investors to
liquidate their holdings as and when they want.
 Simplicity:
Investments in mutual fund are considered to be easy, compare to
other available instruments in the market, and the minimum
investment is small.

17
Disadvantages of Mutual Fund:
 Professional Management:
Some funds don’t perform according to the market, as their
management is not dynamic enough to explore the available
opportunity in the market, thus investor lose their money.
 Costs:
The biggest source of AMC income is generally from the entry and
exit load which they charge from investors, at the time of purchase.
The mutual fund industries are thus charging extra cost under layers
of jargon.
 Dilution:
Because funds have small holdings across different companies, high
returnsfrom a few investments often don’t make much difference on
the overall return. Dilution is also the result of a successful fund
getting too big. When money pours into funds that have had strong
success, the manager often has trouble finding a good investment for
all the new money.
 Taxes:
When making decisions about your money, fund managers don’t
consider your personal tax situation.

18
Types of Mutual Funds scheme in India
Wide variety of Mutual funds scheme exists to cater to the needs such
as financial position, risk tolerance and return expectations etc. thus mutual
fundshasvariety of flavors, Beinga collection of many stocks, an investorscan
go for picking a mutual fund might be easy. There are over hundreds of
mutual fund scheme to choose from. It s easier to think of mutual funds in
categories, mentioned below:-
1.On the basis of Structure:
Open- Ended Schemes: An open ended fund is one of that is
available for subscription throughout year. These do not have a
fixed maturity. Investorscan conveniently buy and sell units at Net
Asset Value (NAV) related prices. The key feature of open end
schemes is liquidity, where you can buy and sell the mutual fund
unit at any time.
Close- Ended Schemes: These schemes have a pre specified
maturity period. One can invest directly in the scheme at the time
of the initial issue. Depending on the structure of the scheme there
are two exit options available to an investor after the initial offer
period closes. First, the investors can transact (buy or sell) the
units of the scheme on the stock exchanges where they are listed.

19
Interval Scheme: Interval schemes are that scheme, which
combines the features of open ended and close ended schemes.
The units may be traded on the stock exchange or may be open for
sale or redemption duringpredetermined intervals at NAV related
prices.
2. On the basis of Nature:
Equity Fund: These funds invest a maximum part of their principal
amount into equities holdings. The structure of the fund may vary
different for different schemes and the fund manager’s outlook on
different stocks.
Debt Fund: 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 paper.
BalancedFunds: 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 funds. Equity part
provided growth and the debt part provided stability in returns.

20
3.On the basis of Investment Objective:
Growth Scheme: These schemes are also known as equity schemes.
The aim of these schemes is 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 Scheme: These 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.
MoneyMarketSchemes:Theseschemes aim to provideeasy liquidity,
preservation of capital and moderate income. These schemes
generally invest in safer, short term instruments such as treasury
bills, certificates of deposits, commercial paper and inter-bank
money.

21
Working of Mutual Funds
The mutual funds collect money directly or through brokers from investors.
The money is invested in various instruments depending on the objective of
the scheme. The income generated by selling securities or capital appreciation
of these securities is passed on to the investors in proportion to their
investment in the scheme. The instruments are divided into units and the
value of the units will be reflected in Net Asset Value or NAV of the unit. NAV
is the market value of the assets of the scheme minus its liabilities. The per
unit NAV is the net asset value of the scheme divided by the number of units
outstanding on the valuation date. Mutual funds companies provide daily net
asset value of their scheme to their investors. NAV is important, as it will
determine the price at which you buy or redeem the units of a scheme.
Depending on the load structure of the scheme, you have to pay entry or exit
load.

22
RESEARCH METHODOLOGY
OBJECTIVES:
Objectives of this study are to analyze the past performance of the various
Mutual Fund Schemes on the Basis of their Historical NAV’s and application of
statistical tool on the same. This helps in understanding the performance of
mutual schemes in terms of both risk as well as return involved.
METHODOLOGY:
A sample of 5 schemes each from 5 different types of funds is being taken.
Types of Funds taken are follows:
 Large cap funds
 Mid cap funds
 Small cap funds
 Sector funds
 Diversified funds
Analysis has been done by using following statistical tools:
 Annualized Return: It indicates the return over the periods of
time.
 Standard Deviation: It shows the historical volatility.
 Beta: it measures the volatility or systematic risk of a security or a
portfolio in comparison to the market as a whole.
 SharpeRatio: Itindicates the Risk Return performanceof Portfolio

23
SIGNIFICANCE:
 Able to learn the various analytical tools of mutual fund like Beta,
Standard Deviation, Compounded annual growth rate and Sharpe Ratio.
 Get complete overview of the Mutual fund industries in India.
 Able to know the past performance of various Mutual funds Scheme.
 Investors are able to know the investment pattern and market trend of
investing in various sectors.
LIMITATIONS:
 Sample size is limited factor, only last five years of data has been taken.
 Past performance may not guarantee the future return.
 Micro level data have been taken in analysis; Macro level data may affect
returns.

24
5 Ways to Measure Mutual Fund Risk
There are five main indicators of investment risk that apply to the analysis
of stocks, bonds and mutual fund portfolios. They are alpha, beta, r-
squared, standard deviation and the Sharpe ratio. These statistical measures
are historical predictors of investment risk/volatility and are all major
components of modern portfolio theory (MPT). The MPT is a standard
financial and academic methodology used for assessing the performance
of equity, fixed-income and mutual fund investments by comparing them to
market benchmarks.
All of these risk measurements are intended to help investors determine
the risk-reward parameters of their investments. In this article, we'll give a
brief explanation of each of these commonly used indicators.
Alpha
Alpha is a measureof an investment's performance on a risk-adjusted basis. It
takes the volatility (price risk) of a security or fund portfolio and compares its
risk-adjusted performance to a benchmark index. The excess return of the
investment relative to the return of the benchmark index is its "alpha."
Simply stated, alpha is often considered to represent the value that a portfolio
manager adds or subtracts from a fund portfolio's return. A positive alpha of
1.0 means the fund has outperformed its benchmark index by 1%.
Correspondingly, a similar negative alpha would indicate an
underperformance of 1%. For investors, the more positive an alpha is, the
better it is.

25
Beta
Beta, also known as the "beta coefficient," is a measure of the volatility,
or systematic risk, of a security or a portfolio in comparison to the market as a
whole. Beta is calculated using regression analysis, and you can think of it as
the tendency of an investment'sreturn to respond to swings in the market. By
definition, the market has a beta of 1.0. Individual security and portfolio
values are measured according to how they deviate from the market.
A beta of 1.0 indicates that the investment's price will move in lock-step with
the market. A beta of less than 1.0 indicates that the investment will be less
volatile than the market, and, correspondingly, a beta of more than 1.0
indicates that the investment's price will be more volatile than the market. For
example, if a fund portfolio's beta is 1.2, it's theoretically 20% more volatile
than the market.
Conservative investors looking to preserve capital should focus on securities
and fund portfolios with low betas, whereas those investors willing to take on
more risk in search of higher returns should look for high beta investments.
R-Squared
R-Squared is a statistical measure that represents the percentage of a fund
portfolio's or security's movements that can be explained by movements in a
benchmark index. For fixed-incomesecurities and their correspondingmutual
funds, the benchmark is the U.S. Treasury Bill, and, likewise with equities
and equity funds, the benchmark is the S&P 500 Index.

26
R-squared values range from 0 to 100. According to Morningstar, a mutual
fund with an R-squared value between 85 and 100 has a performance record
that is closely correlated to the index. A fund rated 70 or less would not
perform like the index.
Mutual fund investors should avoid actively managed funds with high R-
squared ratios, which are generally criticized by analysts as being
"closet" index funds. In these cases, why pay the higher fees for so-called
professional management when you can get the same or better results from
an index fund?
Standard Deviation
Standard deviation measures the dispersion of data from its mean. In plain
English, the more that data is spread apart, the higher the difference is from
the norm. In finance, standard deviation is applied to the annual rate of
return of an investment to measure its volatility (risk). A volatile stock would
have a high standard deviation. With mutual funds, the standard deviation
tells us how much the return on a fund is deviating from the expected
returns based on its historical performance.
Sharpe Ratio
Developed by Nobel laureate economist William Sharpe, this ratio measures
risk-adjusted performance. It is calculated by subtracting the risk-free rate of
return (U.S. Treasury Bond) from the rate of return for an investment and
dividing the result by the investment's standard deviation of its return.

27
The Sharpe ratio tells investors whether an investment's returns are due
to smart investment decisions or the result of excess risk. This measurement
is very useful because although one portfolio or security can reap higher
returns than its peers, it is only a good investment if those higher returns do
not come with too much additional risk. The greater an investment's Sharpe
ratio, the better its risk-adjusted performance.
The Bottom Line
Many investors tend to focus exclusively on investment return, with little
concern for investment risk. The five risk measures we have just discussed
can provide some balance to the risk-return equation. The good news for
investors is that these indicators are calculated for them and are available on
several financial websites, as well as being incorporated into many
investment research reports. As useful as these measurements are, keep in
mind that when considering a stock, bond or mutual fund investment,
volatility risk is just one of the factors you should be considering that can
affect the quality of an investment.

28
Overview& Analysis of some MutualFunds
Reliance Mutual Fund:
Reliance Mutual Fund is India’s leading Mutual Fund with Quarter Average
Assets under management (AAUM) of ₹1,02,066 crores.
Reliance Mutual Fund, a part of the Reliance- Anil Dhirubhai Ambani Group, is
one of the fastest growing mutual funds in the country. Reliance Mutual fund
offers investors a well- rounded portfolio of products to meet varying investor
requirements and has presence in 159 cities across the country. Reliance Mutual
fund constantly endeavors to launch innovative products and customer service
initiatives to increase value to investors. “Reliance Mutual Fund schemes are
managed by Reliance Capital Asset Management Limited, a subsidiary of Reliance
Capital Limited, which holds 93.37% of the paid-up capital of RCAM.

29
The schemes that I have taken for analysis from Reliance Mutual Fund are:
RelianceBankingFund(G) [under sector fund]: The primary investment
objective of the Scheme is to seek to generate continuous returns by
actively investing in equity and equity related or fixed income securities
of companies in the Banking sector.
Fund Overview:
RelianceMediaandEntertainment Fund(G) [under sector fund]: The
primary investment objective of the scheme is to generate consistent
returns by investing in equity/ equity related or fixed income securities
of media and entertainment and other associated companies.
Fund overview:
Fund Types: Open Ended
Investment Plan: Growth
Asset Sizes: ₹ 87.64 crores
Inception Date Jan 2013
Benchmark Nifty Media Index
Fund Manager Mr. Sailesh Raj Bhan
Fund Type: Open ended
InvestmentPlan: Growth
Inception Date: May 2003
Benchmark: CNX Bank Index
Fund Manager: Mr. Shrey Loonker

30
RelianceVision (G) [under large cap fund]: Seeks to provide long term
capital appreciation by primarily investing in growth oriented stocks.
Fund Overview:
Asset sizes: ₹ 2986.18 crores
Inception Date: Sep 1995
Benchmark: S&P BSE 100
Fund Manager: Mr. Ashwani Kumar
UTI Mutual Fund:
UTI Mutual Fund was started in 14 January, 2003 by UTI Trustee Co.
Pvt. Ltd. for managing the schemes of UTI Mutual Fund. UTI Asset
Management Company (AMC) provides professionally managed back
office support for all business services of UTI Mutual Fund in
accordance with the provision of the Investment Management
Agreement, the Trust Deed, the SEBI Regulations and the objectives of
the schemes.

31
The schemes that I have taken for analysis from UTI Mutual Fund are:
UTI Infrastructure Fund(G) [under sector fund]:Investment Objective is
capital appreciation by investing in the companies engaged in the
sectors like Metals, Real Estate, Oil, Gas, Power, Chemicals, Engineering
etc.
Fund Overview:
Fund Types Open Ended
Inception Date: Aug 2005
Fund Manager: Mr. Sanjay Ramdas Dongre
UTI Large Equity Fund (G) [under large cap fund]: The scheme is
designed specifically for large corporate investors and as well as high
net worth investors who would like to invest large amount in exclusive
Scheme which allows entry and exit at NAV.
Fund Overview:
Fund Manager: Mr. Ajay Tyagi

32
UTI MidCapFund[under Mid cap fund]: its aim to provide to investors
growth of capital over a period of time by investing in mid cap stock, as
well as to make periodical distribution of income from investment in
stocks of respective sectors of the Indian economy.
Fund Overview:
SBI Mutual Fund:
SBI Mutual fund is the India’s largest bank sponsored mutual fund and has a
track record in judicious investments and consistent wealth creation. The
fund traces its lineage to SBI – India’s largest banking enterprise. The
institution has grown immensely since its inception and today it is India’s
largest bank, patronized by over 80% of the top corporate houses of the
country.
Benchmark: Nifty Free Float Midcap 100 In
Fund Manager: Mr. Lalit Gopalan Nambiar

33
SBI Mutual fund is a joint venture between the State Bank of India and Society
General Asset Management, one of the world’s leading fund management
companies that manages over US$ 500 Billion worldwide.
In twenty years of operation, the fund has launched 38 schemes and
successfully redeemed fifteen of them. In the process it has rewarded it’s
investors handsomely with consistent returns.
A total of over 5.8 million investors have responded their faith in the wealth
generation expertise of the Mutual Fund.
Today, the fund manages over ₹ 42,100 corers of assets and has a diverse
profile of investors actively parking their investments across 38 active
schemes. SBI Mutual is the first bank –sponsored fund to launch an offshore
fund Resurgent India Opportunities Fund.
The schemes that I have taken for analysis from SBI Mutual Fund are:
SBI Magnum Sector Umbrella- Pharma (G) [under sector fund]: It
provided the investor’s maximum growth opportunity through equity
investments in stocks of growth oriented sector called Pharma in long
run.
Fund Overview:
Inception Date: June 1999
Benchmark: S&P BSE Healthcare
Fund Manager: Mr. Tanmaya Desai

34
SBI Magnum Equity Fund (G) [under large cap fund]: To provide
investors long term capital appreciation along with the liquidity of an
open-ended scheme. The scheme will invest in a diversified portfolio of
equities of high growth companies.
Fund Overview:
Inception Date: Nov 2006
Benchmark: Nifty 50 Index
Fund Manager: Mr. R. Srinivasan
Awards and Achievements
SBI Mutual fund (SBIMF) has been the proud recipient of the ICRA Online
Award-* times, CNBC TV- 18 Crisi Award 2006- 4 Awards, The Lipper Award
(Year 2005-06) and the most recently with the CNBC TV- 18 Crisil Mutual
Fund Award 2007 and 5 Awards for our Schemes.

35
Franklin Templeton Mutual Fund:
Franklin Templeton Investments is one of the largest financial services groups
in the world based at San Mateo, California USA. The group has US$ 850
Billion in assets under management globally.
Franklin Templeton has offices in 33 locations across India and manages
average AUM of ₹ 66, 94,692.09 Lakh for over 22 lakh investors (as on 31
March, 2016).
The schemes that I have taken for analysis from Franklin Templeton Mutual
Fund are:
Franklin India Bluechip Fund (G) [under the large cap fund]: The
scheme seeks aggressive growth and aims to provide medium to long
term capital appreciation through investment in shares of quality
companies and by focusing on well established large sized companies.
Fund Overview:
Assets sizes: ₹ 7638.63 crores
Inception Date: Oct 1993
Benchmark: S&P BSE Sensex
Fund Manager: Mr. Srikesh Nair

36
JM Financial Mutual Fund:
It is one of the India’s first private sector Mutual funds- an integral part of the
first wave that commenced operations in 1993-94. It is a part of JM Financial
Group, which has a rich heritage, built over three decade.
Group’s origins can be traced back to the 1950s when the Kampani family
began to get involved in India’s then capital markets. JM Financial &
Investment Consultancy Services was founded on September15, 1973.
JM Financial Asset Management Private Limited started operations in
December 1994 with a simultaneous launch of three funds- JM Financial
Mutual Fund offers a bouquet of funds that caters to the diverse needs of both
its institutional and individual investors.
The schemes that I have taken for analysisfrom JM Financial MutualFund are:
JM LargecapEquity Fund (G) [under the large cap fund]: The scheme
aims to provide long term capital appreciation from a portfolio that is
invested predominantly in equity and equity related instruments in the
Healthcare sector.
Fund Overview:
Assets sizes: ₹ 761.11 crores
Inception Date: Dec 1994
Fund Manager: Mr. Chaitanya Choksi

37
JM HighLiquidityFund(D): Thescheme seeks to provideincomeby way
of dividend and capital gains through investment in debt and money
market instruments. Secondary objective is capital appreciation.
Fund Overview:
Investment Plan: Debt
Benchmark: Crisil Liquid Fund Index
Fund Manager: Ms. Shalini Tibrewala
Birla Sun Life Mutual Fund:
Birla Sun Life Asset Management Company Ltd. (BSLAMC) is a joint
venture between the Aditya Birla Group and the Sun Life Financial
Services Inc. of Canada. The joint venture brings together the Aditya
Birla Group’s experience in the Indian market and Sun Life’s global
experience.

38
The schemes that I have taken for analysis from Birla Sun Life Mutual
fund are:
BirlaSunLifeAdvantageFund [under large cap fund]: To achieve long-
term growth of capital through investments mainly in equity related
instruments.
Fund Overview:
Inception Date: Jan 2013
Fund Manager: Mr. Satyabrata Mohanty
BirlaSunLifeSmall& MidcapFund[under small cap fund]: It objective
is to generate consistent long-term capital appreciation by investing
predominantly in equity and equity related securities of companies
considered to be small and mid cap. It may also invest a certain portion
of its corpus in fixed income securities including money market
instruments, in order to meet liquidity requirements from time to time.
Fund Overview:
Inception Date: Apr 2007
Fund Manager: Mr. Jayesh Gandhi

39
Kotak Mahindra Mutual Fund:
Kotak Mahindra is one of the 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
corporate. Kotak Mahindra Asset Management Company Limited (KMAMC), a
wholly owned subsidiary of KMBL, is the Asset Manager for Kotak Mahindra
MutualFund (KMMF). KMAMC, started operations in December 1998 and has
over 10 lakh investors in various schemes. KMMF offers schemes catering to
investors with varying risk- return profiles and was the first fund house in
country to launch dedicated gilt scheme investing only in government
securities.
The schemes that I have taken for analysis from Kotak Mahindra Mutual fund
are:
Kotak Midcap Regular Plan [under mid cap fund]: The investment
objective of Kotak Midcap is to generate capital appreciation from a
diversified portfolio of equity and equity related securities. The scheme
predominantly invests in companies in the mid benefit of potential
growth offered by mid cap stocks which are likely to become tomorrows
large caps.

40
Fund Overview:
Fund Manager: Mr. Pankaj Tibrewal
Kotak EquityArbitrageFund Regular Plan: The scheme seeks to generate
regular income and capital appreciation by investing in a portfolio of
medium term debt and money market instruments.
Fund Overview:
Inception Date: Feb2014
Benchmark: Crisil Composite Bond Index
Fund Manager: Mr. Deepak Agrawal
L & T Mutual Fund:
L & T Mutual Fund is one of the premier mutual funds in India that serves the
investment needs of investors through a suite of acclaimed mutual fund
schemes. With world class investment management practices and an equally

41
competent fund management team, L & T Mutual Fund helps its investors
reach their financial goals.
Whether you are an individual investor, institution, or finance professional,
you can gain from the products and expertise that we offer.
L & T MutualFund isbacked y oneof the most trusted and valued brand, L & T
Finance- incorporated as Non Banking Finance Company in November 1994,
has earned the trust of thousands of investors by adapting well to the
changing marketing dynamics and emerging as a profitable venture despite
the turbulences in the Financial market over the past few years.
The schemes that I have taken for analysis from L & T Mutual fund are:
L & T MidcapFund [under the small cap]: The scheme aims to generate
capital appreciation by investing primarily in midcap stocks. The
investment universe would primarily comprise of companies that have
a market capitalization ranging from ₹ 300 to ₹ 3000 crore.
Fund Overview:
Investment Plan: Equity
Inception Date: Jun 2004
Fund Manager: Mr. Soumendra Nath Lairi

42
TATA Mutual Fund:
TATA Mutualfund hasearned the tryst of lakhs of investors with its consistent
performance and world class service.
The Tata Asset Management philosophy is centered on seeking consistent,
long term results. Tata Asset Management aims at overall excellence, within
the framework of transparent and rigorous risk controls.
Tata Mutual Fund offers investors a broad range of managed investment
products in various asset classes and risk parameters, with operational
flexibility to suit their varied investment needs.
The schemes that I have taken for analysis from TATA Mutual fund are:
TATA Dividend Yield Fund(G) [under Diversified fund]: To provide
income distribution and /or medium to long term capital gains by
investing predominantly in high dividend yield stocks.
Fund Overview:
Inception Date: Sept 2004
Fund Manager: Mr. Nainesh Rajani & Mr. Rupesh Patel

43
HDFC Mutual Fund:
HDFC Asset Management Company Ltd (AMC) was incorporated under the
Companies Act 1956, on December 10, 1999, and was approved to act as an
Asset ManagementCompany for the HDFC Mutual Fund by SEBI vide its letter
dated July 3, 2000.
In termsof the InvestmentManagementAgreement, the trustee has appointed
the HDFC Asset Management Company Limited to manage the Mutual Fund
some are HDFC Growth Fund, HDFC Equity Fund, HDFC Top 200 Fund, HDFC
Capital Builder Fund, HDFC Core & Satellite Fund, HDFC Premier Multi cap
Fund & HDFC Index Fund.
The schemes that I have taken for analysis from HDFC Mutual fund are:
HDFCTop 200Fund: The scheme seeks capital appreciataion and would
invest up to 90 percent equity and the remaining in debt instruments.
Also, the stocks would be drawn from the companies in the BSE 200
Index as well as 200 largest capitalized companies in India.
Fund Overview:
Asset sizes: ₹ 12,704.21 crores
Fund Manager: Mr. Rakesh Vyas

44
Types of Funds taken for analysis:
 Large Cap Funds:
These are those types of Funds which invest their money in large Blue
chip Companies, having with a market capitalization of more than
₹ 1000 crores.
Investing in large cap is a low risk return preposition because such
funds are widely research and information available.
One of the advantage of large cap funds are that they are less volatile
than mid cap and small cap funds because investors are investing in this
types of fund for a long term prospective and help to keep these fund
away from the volatility of the markets.
Top performer under this category:
I. Franklin IndiaBlueChip: Its Compounded Annualized Returns of
last 5 years is 13.13%.
II. L&TEquity fundgrowth: Its Compounded Annualized Returns of
III. SBIBlue chipFundRegularGrowth: Its Compounded Annualized
Returns of last 5 years is 18.8%.
IV. ICICI Prudential Top 100 Fund Growth: Its Compounded
Annualized Returns of last 5 years is 15.8%.
V. UTI EquityFundGrowth: : ItsCompounded Annualized Returns of

45
 Mid Cap Funds:
This type of funds invest their money in mid sizes companies.
Companies having market Capitalization between the ₹ 500 crores to ₹
1000 croresare come under the mid cap companies. Mid Cap Funds are
very volatile and tends to fall if the market is fall in bad times. But this
gives good return in short term.
I. ICICI Prudential mid cap fund: Its Compounded Annualized
II. Sundaram Select mid cap fund: Its Compounded Annualized
III. BirlaSunlifemidcap fund: ItsCompoundedAnnualizedReturnsof
IV. L & T mid capfund: Its Compounded Annualized Returns of last 5
years is 25.7%.
V. SBImagnummid capfund: ItsCompoundedAnnualized Returnsof

46
 Small Cap Funds:
These types of funds are investing their money in Small size companies.
Companies having market capitalization up to ₹ 500 crores come under
the categories of Small Cap companies. Small Cap Funds are more
volatile than Mid Cap & Large Cap Funds. Its Risk-Return Matrix are
very high.
I. RelianceSmallcap fund: Its Compounded Annualized Returns of
II. DSP Black rock Small cap fund: Its Compounded Annualized
III. Edelweiss Smallcapfund: ItsCompounded Annualized Returns of
IV. MiraeAssetEmergingBluechipfund:Its Compounded Annualized
V. Kotak EmergingEquity Scheme- Regular Plan: Its Compounded

47
 Sector Funds:
These types of funds are investing their money in particular sector of
the economy. Such as Infrastructure, Banking, Retail, FMCG etc. These
funds are more volatile than Diversified funds having stocks of many
sectors. These fundsarerisk –reward category. These typesof funds are
only for the short term investors, who are able to take high risk ability.
I. TATA Infrastructurefund: ItsCompounded AnnualizedReturnsof
II. Franklin Infotech fund: Its Compounded Annualized Returns of
III. ICICIPru FMCGfund: Its Compounded Annualized Returns of last
5 years is 17.6%.
IV. ReliancePharmafund: ItsCompoundedAnnualized Returnsof last
5 years is 19.4%.
V. UTI Transport and Logistic fund: Its Compounded Annualized

48
Diversified Funds:
I. IDFCPremiumEquityfund-plan A: Its Compounded Annualized
II. Relianceregular saving fund-Equity growth: Its Compounded
III. HDFCTop 200 Growth: Its Compounded Annualized Returns of
IV. BirlasunlifefrontlineEquity fund: Its Compounded Annualized
V. TATA Ethicalfund: Its Compounded Annualized Returns of last 5
years is 15.5%.

49
Statistical tools helps for analyze the 5 schemes
each from 5 diiferent types of funds and
Interpretation
Large Cap Funds.
1. Compound Annual Growth Rate (CAGR):
Year/
Scheme
Franklin India Blue
chip Fund
L&T Equity
Fund Growth
SBI Bluechip
Fund Regular
Growth
ICICI Pru. Top
100 Fund
Growth
UTI Equity
Fund Growth
Last 1 20.97% 24.2% 19.2% 30.1% 17.1%
Last 3 18.37% 21.7% 22.5% 20.3% 19.1%
Last 5 13.13% 15.0% 18.8% 15.8% 17.4%
2. Standard Deviation:
Year/
Scheme
Franklin India
Blue chip Fund
L&T Equity
Fund Growth
SBI Bluechip
Fund Regular
Growth
ICICI Pru. Top
100 Fund
Growth
UTI Equity
Fund Growth
Last 1 20.70% 19.20% 21.12% 18.99% 22.05%
Last 3 25.86% 22.14% 23.25% 22.14% 23.82%
Last 5 33.65% 26.87% 27.67% 26.87% 30.83%

50
3. Beta
Year/
Scheme
Franklin India
Blue chip Fund
L&T Equity
Fund Growth
SBI Bluechip
Fund Regular
Growth
ICICI Pru.
Top 100
Fund Growth
UTI Equity
Fund Growth
Last 1 1 1 1 1 1
Last 3 0.96 1.06 0.91 0.98 0.98
Last 5 0.90 0.80 0.69 0.80 0.95
4. Sharpe Ratio
Year/
Scheme
Franklin India
Blue chip Fund
L&T Equity
Fund Growth
SBI Bluechip
Fund Regular
Growth
ICICI Pru.
Top 100
Fund Growth
UTI Equity
Fund Growth
Last 1 0.75 0.84 1.05 0.86 0.81
Last 3 0.94 0.97 1.16 1.01 0.88
Last 5 1.22 1.17 1.38 1.22 1.13

51
Graphically RepresentationonPerformanceof MutualFund in
Large Cap Funds
Interpretation
 In last 1 year, in comparison to return 1 the risk is less than 0.207 and
the future prospects of this fund’s return are 0.75.
 In last 3 years, in comparison to return 0.96 the risk is less than 0.258
and the future prospects of this fund’s return are 0.94.
and the future prospects of this fund’s return are 0.1.22.
 In comparison to the relation of risk and return to last 3 years and 5
years as comparison to last 1 year, I analyze that the return is more in
comparison to risk. In the 3rd and 5th years the risk is increased in
comparison to 1st year and the return is going to be reduced. So it is find
out that the investment in this fund in the initial stage is beneficial and if
the fund holds for future prospects the return may be reduced.
0.75
0.94
1.22
0
0.2
0.4
0.6
0.8
1
1.2
1.4
Last 1 year Last 3 years Last 5 years
Franklin India Bluechip Fund
Standard Deviation
Beta
Sharpe Ratio

52
Interpretation
 In comparison to the relation of risk and return to the last 1 year and
the 5 years to last 3 years, I analyze that the return is more in
comparison to risk. In the 1st and 5th years the risk is increased in
comparison to 3rd years and the return is going to be reduced. So it is
find out that the investment in this fund in the mid-term is beneficial
and if the fund holds for shorter period and longer period the return
may be reduced.
0.84
0.97
1.17
0
0.2
0.4
0.6
0.8
1
1.2
1.4
L&T Equity Fund Growth
Standard Deviation
Beta
Sharpe Ratio

53
Interpretation
comparison to 1st year and the return is going to be decreased. So it is
find out that the investment in this fund in the short term is more
beneficial if the fund holds for long run the return may be reduced.
1.05
1.16
1.38
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
SBI Bluechip Fund Regular Growth
Standard Deviation
Beta
Sharpe Ratio

54
Interpretation
 In comparison to the relation of risk and return relation to last 3 years
and 5 years as comparison to last 1 year, I analyze that the return is
more in comparison to risk. In the 3rd and 5th years the risk is increased
in comparison to 1st year and the return is going to be decreased. So it is
0.86
1.01
1.22
0
0.2
0.4
0.6
0.8
1
1.2
1.4
ICICI Pru Top 100 Fund Growth
Standard Deviation
Beta
Sharpe Ratio

55
Interpretation
comparison to 1st year and the return is going to be decreased. So it is
0.81
0.88
1.13
0
0.2
0.4
0.6
0.8
1
1.2
UTI Equity Fund Growth
Standard Deviation
Beta
Sharpe Ratio

56
Mid Cap Funds.
Year/
Scheme
ICICI Pru. Mid cap
Fund
Sundram
Select Mid
cap Fund
Birla Sun Life
Mid cap Fund
L&T Mid cap
Fund
SBI Magnum
Mid cap Fund
Last 1 38.5% 44.2% 39.3% 43.7% 31.6%
Last 3 31.6% 36.3% 31.4% 36.8% 31.2%
Last 5 22.3% 24.4% 20.9% 24.7% 26.8%
Year/
Scheme
ICICI Pru. Mid cap
Fund
Sundram
Select Mid
cap Fund
Birla Sun Life
Mid cap Fund
L&T Mid cap
Fund
SBI Magnum
Mid cap Fund
Last 1 18.72% 18.72% 18.72% 17.45% 17.45%
Last 3 18.97% 18.98% 18.97% 16.63% 16.63%
Last 5 22.92% 22.92% 22.92% 20.77% 20.77%

57
3. Beta
Year/
Scheme
ICICI Pru. Mid cap
Fund
Sundram
Select Mid
cap Fund
Birla Sun Life
Mid cap Fund
L&T Mid cap
Fund
SBI Magnum
Mid cap Fund
Last 1 1 1 1 1 1
Last 3 1.09 1.17 1.10 1.09 0.91
Last 5 0.91 0.91 0.91 1.19 1.19
4. Sharpe Ratio
Year/
Scheme
ICICI Pru. Mid
cap Fund
Sundram Select
Mid cap Fund
Birla Sun Life
Mid cap Fund
L&T Mid cap
Fund
SBI Magnum
Mid cap Fund
Last 1 1.30 1.41 1.28 2.17 1.95
Last 3 1.32 1.43 1.30 2.07 1.86
Last 5 1.59 1.72 1.57 2.58 2.32

58
Mid Cap Funds
Interpretation
 In comparison to the relation of risk and return to last 1 year and 5
years as comparison to last 3 year, I analyze that the return is somehow
more in comparison to risk. In the 1st and 5th years the risk is little
increased in comparison to 3rd year and the return is going to be
decreased. So it is find out that the investment in this fund in the
midterm is more beneficial if the fund holds for short term and long
term the return may be reduced.
1.3 1.32
1.59
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
ICICI Pru Mid cap Fund
Standard Deviation
Beta
Sharpe Ratio

59
Interpretation
comparison to risk. In the 1st and 5th years the risk is increased in
comparison to 3rd year and the return is going to be decreased. So it is
find out that the investment in this fund in the midterm is more
beneficial if the fund holds for short term and long term the return may
be reduced.
1.41 1.43
1.72
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
Sundram Select MidCap Fund
Standard Deviation
Beta
Sharpe Ratio

60
Interpretation
comparison to risk. In the 1st and 5th years the risk is little increased in
comparison to 3rd year and the return is going to be decreased. So it is
be reduced.
1.28
1.43
1.57
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
Birla Sunlife MidCap Fund
Standard Deviation
Beta
Sharpe Ratio

61
Interpretation
years as comparison to last 5 year, I analyze that the return is somehow
more in comparison to risk. In the 1st and 3rd years the risk is little
increased in comparison to 5th year and the return is going to be
decreased. So it is find out that the investment in this fund in the long
term is more beneficial if the fund holdsfor short term and mid term the
return may be reduced.
2.17
2.07
2.58
0
0.5
1
1.5
2
2.5
3
L&T MidCap Fund
Standard Deviation
Beta
Sharpe Ratio

62
Interpretation
years as comparison to last 5 years, I analyze that the return is more in
comparison to risk. In the 1st and 3rd years the risk is little changed in
comparison to 5th year and the return is going to be increased. So it is
find out that the investment in this fund in the long term is more
beneficial if the fund holds for short term and midterm the return may
be reduced.
1.95
1.86
2.32
0
0.5
1
1.5
2
2.5
SBI Magnum MidCap Fund
Standard Deviation
Beta
Sharpe Ratio

63
Small Cap Funds.
Year/
Scheme
Reliance
Small cap
Fund
DSP Blackrock
Small cap
Fund
Edelweiss
Small cap
Fund
Mirae Asset
Emerging
Bluechip Fund
Kotak
Emerging
Equity Scheme
Last 1 43.0% 48.0% 31.7% 47.8% 45.1%
Last 3 40.1% 34.5% 33.0% 38.4% 38.3%
Last 5 28.8% 23.1% 24.5% 28.7% 24.3%
Year/
Scheme
Reliance
Small cap
Fund
DSP Blackrock
Small cap
Fund
Edelweiss
Small cap
Fund
Mirae Asset
Emerging
Bluechip Fund
Kotak
Emerging
Equity Scheme
Last 1 17.86% 17.41% 16.01% 17.41% 16.23%
Last 3 16.67% 19.07% 19.07% 19.07% 16.67%
Last 5 20.97% 23.15% 23.15% 23.15% 20.97%

64
3. Beta
Year/
Scheme
Reliance
Small cap
Fund
DSP Blackrock
Small cap
Fund
Edelweiss
Small cap
Fund
Mirae Asset
Emerging
Bluechip Fund
Kotak
Emerging
Equity Scheme
Last 1 1 1 1 1 1
Last 3 1.22 1.05 1.16 0.97 1.06
Last 5 1.23 0.92 0.92 0.92 1.23
4. Sharpe Ratio
Year/
Scheme
Reliance
Small cap
Fund
DSP Blackrock
Small cap
Fund
Edelweiss
Small cap
Fund
Mirae Asset
Emerging
Bluechip Fund
Kotak
Emerging
Equity Scheme
Last 1 2.13 1.62 1.06 1.59 1.61
Last 3 1.99 1.78 1.27 1.75 1.65
Last 5 2.50 2.16 1.54 2.12 2.07

65
SmallCap Funds
Interpretation
comparison to risk. In the 1st and 5th years the risk is little changed in
comparison to 3rd years and the return is going to be increased. So it is
find out that the investmentin this fund in the midterm and long term is
more beneficial if the fund holds for short term the return may be
reduced.
2.13
1.99
2.5
0
0.5
1
1.5
2
2.5
3
Reliance SmallCap Fund
Standard Deviation
Beta
Sharpe Ratio

66
Interpretation
comparison to risk. In the 1st and 5th years the risk is changed in
be reduced.
1.62
1.78
2.16
0
0.5
1
1.5
2
2.5
DSP BlackRockSmallCap Fund
Standard Deviation
Beta
Sharpe Ratio

67
Interpretation
be reduced.
1.06
1.27
1.54
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
EdelweissSmallCap Fund
Standard Deviation
Beta
Sharpe Ratio

68
Interpretation
comparison to 1st year and the return is going to be increased. So it is
find out that the investment in this fund in the Short term is more
beneficial if the fund holds for mid term and long term the return may
be reduced.
1.59
1.75
2.12
0
0.5
1
1.5
2
2.5
Mirae Asset Emerging BlueChip Fund
Standard Deviation
Beta
Sharpe ratio

69
Interpretation
 In last 3 years, in comparison to return 1.06 the risk is less than .166
comparison to risk. In the 1st and 3rd years the risk is increased in
comparison to 5th years and the return is going to be increased. So it is
beneficial if the fund holds for short term and mid term the return may
be reduced.
1.61 1.65
2.07
0
0.5
1
1.5
2
2.5
Kotak Emerging Equity Scheme
Standard Deviation
Beta
Sharpe Ratio

70
Sector Funds.
Year/
Scheme
TATA
Infrastructure
Fund
Frankflin
Infotech Fund
ICICI Pru.
FMCG Fund
Reliance
Pharma Fund
UTI Transport
& Logistic
Fund
Last 1 36.2% 9.2% 24.7% 11.61% 33.0%
Last 3 26.7% 6.2% 16.4% 16.2% 36.4%
Last 5 11.2% 12.2% 17.4% 19.3% 28.3%
Year/
Scheme
TATA
Infrastructure
Fund
Frankflin
Infotech Fund
ICICI Pru.
FMCG Fund
Reliance
Pharma Fund
UTI Transport
& Logistic
Fund
Last 1 16.83% 61.69% 20.63% 35.11% 17.28%
Last 3 20.10% 43.44% 26.03% 25.82% 18.81%
Last 5 31.74% 29.15% 24.25% 23.50% 20.74%

71
3. Beta
Year/
Scheme
TATA
Infrastructure
Fund
Frankflin
Infotech Fund
ICICI Pru.
FMCG Fund
Reliance
Pharma Fund
UTI Transport
& Logistic
Fund
Last 1 1 1 1 1 1
Last 3 1.30 0.81 0.92 0.84 1.19
Last 5 1.82 1.12 0.28 0.38 0.49
4. Sharpe Ratio
Year/
Scheme
TATA
Infrastructure
Fund
Frankflin
Infotech Fund
ICICI Pru.
FMCG Fund
Reliance
Pharma Fund
UTI Transport
& Logistic
Fund
Last 1 0.79 0.12 0.64 0.88 1.20
Last 3 0.95 0.09 0.81 0.65 1.31
Last 5 1.5 0.06 0.75 0.59 1.44

72
Graphically RepresentationonPerformanceof Mutual Fund in
Sector Funds
Interpretation
comparison to risk. In the 1st and 3rd years the risk is changed in
be reduced.
0.79
0.95
1.5
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
TATA InfrastructureFund
Standard Deviation
Beta
Sharpe Ratio

73
Interpretation
comparison to risk. In the 1st and 3rd years the risk is changed in
be reduced.
0.12 0.09 0.06
0
0.2
0.4
0.6
0.8
1
1.2
Frankflin Infotech Fund
Standard Deviation
Beta
Sharpe Ratio

74
Interpretation
comparison to risk. In the 3rd and 5th years the risk is changed in
comparison to 1st years and the return is going to be increased. So it is
be reduced.
0.64
0.81
0.75
0
0.2
0.4
0.6
0.8
1
1.2
ICICI Pru FMCG Fund
Standard Deviation
Beta
Sharpe ratio

75
Interpretation
be reduced.
0.88
0.65
0.59
0
0.2
0.4
0.6
0.8
1
1.2
Reliance Pharma Fund
Standard Deviation
Beta
Sharpe ratio

76
Diversified Funds.
Year/
Scheme
IDFC Premium
Equity Fund
Reliance Regular
Saving Fund
HDFC Top
200 Growth
Birla Sun Life
Frontline
Equity Fund
TATA Ethical
Fund
Last 1 21.0% 30.2% 42.9 31.2% 11.6%
Last 3 22.9% 22.1% 20.0% 20.8% 15.6%
Last 5 18.9% 15.5% 13.5% 16.9% 15.0%
Year/
Scheme
IDFC Premium
Equity Fund
Reliance
Regular Saving
Fund
HDFC Top
200 Growth
Birla Sun Life
Frontline
Equity Fund
TATA Ethical
Fund
Last 1 18.50% 33.04% 21.73% 21.73% 19.55%
Last 3 19.48% 33.87% 26.95% 26.95% 22.96%
Last 5 22.98% 36.07% 30.54% 30.54% 26.92%

77
3. Beta
Year/
Scheme
IDFC Premium
Equity Fund
Reliance
Regular
Saving Fund
HDFC Top
200 Growth
Birla Sun Life
Frontline
Equity Fund
TATA Ethical
Fund
Last 1 1 1 1 1 1
Last 3 0.97 1.18 1.21 1.02 0.72
Last 5 0.78 0.18 0.43 0.44 0.64
4. Sharpe Ratio
Year/
Scheme
IDFC Premium
Equity Fund
Reliance
Regular Saving
Fund
HDFC Top
200 Growth
Birla Sun Life
Frontline
Equity Fund
TATA Ethical
Fund
Last 1 0.97 0.87 0.63 0.81 0.65
Last 3 1.03 0.90 0.79 1.00 0.77
Last 5 1.21 0.95 0.89 1.13 0.90

78
Diversified Funds
Interpretation
be reduced.
0.97
1.03
1.21
0
0.2
0.4
0.6
0.8
1
1.2
1.4
IDFC Premium equity Fund
Standard Deviation
Beta
Sharpe Ratio

79
Interpretation
 In last 1 year, in comparison to return 1 the risk is less than 0.33 and the
future prospects of this fund’s return are 0.87.
comparison to 3rd year and the return is going to be increased. So it is
find out that the investment in this fund in the mid term is more
be reduced.
0.87 0.9
0.95
0
0.2
0.4
0.6
0.8
1
1.2
1.4
Reliance Regular Savings Fund
Standard Deviation
Beta
Sharpe ratio

80
Interpretation
find out that the investment in this fund in the mid term is more
be reduced.
0.63
0.79
0.89
0
0.2
0.4
0.6
0.8
1
1.2
1.4
HDFC Top 200 Growth
Standard Deviation
Beta
Sharpe Ratio

81
Interpretation
find out that the investment in this fund in the short term and mid term
is more beneficial if the fund holds for long term the return may be
reduced.
0.81
1
1.13
0
0.2
0.4
0.6
0.8
1
1.2
Birla Sunlife Frontline Equity Fund
Standard Deviation
Beta
Sharpe Ratio

82
Interpretation
be reduced.
0.65
0.77
0.9
0
0.2
0.4
0.6
0.8
1
1.2
TATA Ethical Fund
Standard Deviation
Beta
Sharpe Ratio

83
Findings
I analyze that in large cap fund the investors get better return in the
initial stage as comparison to long term but the future prospects in the
large cap funds is not beneficial for the shorter period so the investors
can hold funds for the long term i.e. minimum 3 years.
I analyze that in mid cap fund the investors get better return in the mid
term period as comparison to short term but the future prospects in the
mid cap funds is not beneficial for the mid term so the investors can
hold for the long term (5 years).
I analyzethat in the small cap fund theinvestors get better return in the
mid term and long term but the risk is high and the futureprospectsin
the small cap fundsisbeneficial in the long term period.
I analyzethat the sector fund is morevolatility in naturethere is a huge
differencesinvolved in return and also futureprospects.
I analyzethat the diversified fund theinvestorsget better return in
Short term and mid term but the risk is going to be increased and the
futureprospectsin these fundsis beneficial in the longterm.
Dueto the unawarenessof the investmentfactors of the MutualFund in
the differenttime perspectivethe investor can investfor wrongperiod
and the opportunity to earn return cannotbe achieved.

84
Suggestions and Recommendations
The most vital problem spotted is of ignorance. Investors should be
made aware of the benefits. Nobody will invest until and unless he is
fully convinced. Investors should be made to realize that ignorance is no
longer bliss and what they are losing by not investing.
Mutual funds offer a lot of benefit which no other single option could
offer. But most of the people are not aware of what actually a mutual
fund is? The only see it as just another investment option. So the
advisorsshould try to change their mindsets. The advisors should target
for more and more young investors.
I suggest that large cap fund gives better return with low risk as
comparison to another types of funds.
In large cap funds the prices are higher as comparison to others, but the
funds are more secure and more chances to get better return as
comparison to from others.

85
Conclusion
While going through the research process, researcher draws some conclusion
on the basis of analysis of each factor that are affecting those facts of this
research study.
From the analysis of the collected data following conclusions have been
made:-
I would like to conclude that for the expansion and development of
funds the investors don’t invest in one security, invest in mutual fund
and make portfolio.
Mutual fund is the better avenue for the investment purpose for the
expansion and development of funds.

86
Bibliography
http://moneycontrol.com
http://investopedia.com
http://www.bluechipindia.co.in/
http://www.theses.com/
The Economic Times
Value Research Online
Research Methodology: Methods and Techniques
(C.R. Kothari)

Performence of mutual fund by. karan gujrati

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Performence of mutual fund by. karan gujrati

Similar to Performence of mutual fund by. karan gujrati (20)

Recently uploaded

Recently uploaded (20)

Performence of mutual fund by. karan gujrati