Mutual Fund Major Research Project 2

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Chapter:- 1 Introduction

Of Mutual Fund

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A Mutual Fund is a trust that pools the savings of a number of investors who share a common

financial goal. The money thus collected is invested by the fund manager in different types of

securities depending upon the objective of the scheme. These could range from shares to debentures

to money market instruments. The income earned through these investments and the capital

appreciations realized by the scheme are shared by its unit holders in proportion to the number of

units owned by them (pro rata). 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 portfolio at a

relatively low cost. Anybody with an investible surplus of as little as a few thousand rupees can

invest in Mutual Funds. Each Mutual Fund scheme has a defined investment objective and strategy.

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 basic purpose of the study is to give broad idea on Mutual Funds and analyse various schemes

to highlight the diversified investment that Mutual Fund offers to its investors. Through this study

one can understand how to invest in Mutual Funds and turn the raw investment into ripen fruits by

taking wise decisions, taking the risk factors into account.

The Study covers the basic meaning, concept, structure and the organization of the Mutual Funds.

The Study is restricted to explain only the returns provided by the Mutual Funds from various

schemes.

1.1 How to Profit with Mutual Funds When you invest in a mutual fund you hope that the value will rise and you can eventually sell your

shares for a profit. This is one of the ways you can profit with mutual funds. Another way is through

capital gains. When a mutual fund sells a security for a higher price than it originally paid for it, it is

known as a capital gain. Most mutual funds distribute their capital gains to shareholders at least

annually, some more often. The last way to profit with mutual funds is with dividends or interest. If

the fund has invested in bonds or dividend-paying stocks, it must pass the dividends or interest

earned on to its shareholders. Like capital gains, this is done at least annually.

1.2 Types of Mutual Funds in India 1. Growth Funds These type funds are those which invest in the stocks of well-established, blue chip companies.

Dividends and steady income are not only goal of these types of funds. But, they are focussed on

increasing in capital gains.

2. Equity Diversified: All non-theme and non-sector funds can be classified as equity diversified funds.

3. Mid Cap: These funds invest in companies from different sectors. However they put a restriction in terms of

the market capitalization of a company, ie, they invest largely in BSE Mid Cap Stocks.

4. ELSS:

Equity Linked Savings Schemes (ELSS) is equity schemes, where investors get tax benefit up to Rs.

1 Lakh under section 80Cof the Income Tax Act. These are open ended schemes but have a lock in

period of 3 years. These schemes serve the dual purpose of equity investing as well as tax planning

for the investor; however it must be noted that investors cannot, under any circumstances, get their

money back before 3 years are over from the date of investment.

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5. Income funds These types of mutual funds are focussed on increased capital gains and steady income. Less

volatile than Aggressive Growth funds.

6. Equity Funds These funds allow an investor to own a portion of the company that they have invested in, it‟s like

having shares of a certain company. Stocks that have proven historically to be the best investment.

Also which have already outperformed all other types of investments in long term, but the risk is

high. These funds produce a greater level of current income by investing in equity securities of

companies with solid reputation and have a good record of paying dividends.

7. Balanced Funds Balanced mutual funds have a portfolio mix of bonds, preferred stocks and common stocks.

Balanced mutual funds aim to conserve investors‟ initial investment, to pay an income and to aid in

the long-term growth of both the principle and the income.

8. Fixed-Income Funds Fixed-income mutual funds are safer than equity funds, but as always, do not yield as high returns

as the latter do. These types of mutual funds are geared towards the investor who is approaching old

age and doesn‟t have many earning years left. Many investors hope to draw a steady income from

these types of mutual funds. Bond funds fall into the category of fixed-income funds.

9. Money-Market Funds These are generally the safest and most secure of mutual fund investments. They invest in the

largest, most stable securities, including Treasury bills. The chances of your capital being eroded are

very minimal. Money-market funds are risk-free. If you invest a thousand rupees, you will get that

money back. It is simply a matter of when you get it back. When investing in a money-market fund,

you should pay attention to the interest rate that is being offered, along with the rules regarding

check-writing. Money-markets have allowed investors to reap high yields on their deposits, and

have made the entire investment process more accessible to people.

The interest rates on money-market funds are changing nearly day to day. In times of inflation, these

funds have had high yields.

10. Index Funds They invest in the portfolio of a index such as BSE Sensitive index (SENSEX) , S&P NSE 50 index

(Nifty), etc. The investment is done in the securities in the same weightage comprising of an index.

You can see that the NAVs of such schemes would rise or fall in accordance with the rise or fall in

the index. It may not be exactly by the same percentage due to “tracking errors”.

11. Gilt Funds These are those funds which invest only in securities issued by the Government. This can be the

Central Govt. or even State Govts. Gilt funds are safe to the extent that they do not carry any Credit

Risk. However, it must be noted that even if one invests in Government Securities, interest rate risk

always remains.

12. Monthly Income Plans MIPs are suitable for conservative investors who along with an exposure to debt do not mind a

small exposure to equities. These funds aim to provide consistency in returns by investing a major

part of their portfolio in debt market instruments with a small exposure to equities. Thus an MIP

would be suitable for conservative investors who along with protection of capital seek some capital

appreciation as MIPs have an exposure to equities. However the monthly income is not assured.

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1.3 Advantages of Mutual Funds

1. Diversification

Diversification involves holding a wide variety of investments in a portfolio so as to mitigate risks.

Mutual funds usually spread investments across various industries and asset classes, constrained

only by the stated investment objective. Thus, by investing in mutual fund, you can avail of the

benefits of diversification and asset allocation, without investing the large amount of money that

would be required to create an individual portfolio.

2. Professional Management

Mutual funds employ experienced and skilled professionals, who conduct investment research, and

analyse the performance and prospects of various instruments before selecting a particular

investment. Thus, by investing in mutual funds, you can avail of the services of professional fund

managers, which would otherwise be costly for an individual investor.

3. Liquidity

In an open-ended scheme, unit holders can redeem their units from the fund house anytime, by

paying a small fee called an exit load, in some cases. Even with close-ended schemes, one can sell

the units on a stock exchange at the prevailing market price. Besides, some close-ended and interval

schemes allow direct repurchase of units at NAV related prices from time to time.

4. Flexibility

Mutual funds offer a variety of plans, such as regular investment, regular withdrawal and dividend

reinvestment plans. Depending upon one‟s preferences and convenience, one can invest or withdraw

funds, accordingly.

5. Cost Effective

Since mutual funds have a number of investors, the fund‟s transaction costs, commissions and other

fees get reduced to a considerable extent. Thus, owing to the benefits of larger scale, mutual funds

are comparatively less expensive than direct investment in the capital markets.

6. Well Regulated

Mutual funds in India are regulated and monitored by the Securities and Exchange Board of India

(SEBI), which strives to protect the interests of investors. Mutual funds are required to provide

investors with regular information about their investments, in addition to other disclosures like

specific investments made by the scheme and the proportion of investment in each asset class.

7. Tax Advantages Investment in mutual funds also enjoys several tax advantages. Dividends from Mutual Funds are

tax-free in the hands of the investor (This, however depends upon changes in Finance Act). Also

Capital Gain accrued from Mutual Fund investment for a period of over one year is treated as long

term capital appreciation and is tax free.

1.4 Disadvantages of Mutual Funds 1. Operational charges:

The Fund is managed by a Fund Manager employed by the Asset Management Company that

floated the fund. Obviously, they are not a non-profit organization and they are looking to make

profits themselves. They get paid by charging you a percentage of your invested money. Hence,

when you invest in a fund, you don‟t get your entire money invested. Rather, a tiny part of it is

chopped off and the remainder invested.

2. Agent’s commission/loads/brokerage:

If you are purchasing a Mutual Fund through an agent, you have to pay the agent a commission too.

If purchased through a trading account like ICICI Direct, you pay an equivalent of brokerage too.

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These transaction charges can however be avoided if you directly purchase the Mutual Fund units

through the AMC, either personally or through their website.

3. No control over investments:

You have absolutely no control over what the Fund Manager does with your money. You can‟t

advise him on how your money is to be invested. You only have to sit back and hope for the best.

4. Probability of wildly high returns reduced significantly:

A Mutual Fund contains a diversified basket of securities. If a single security outperforms by a

significant margin, the impact will be limited. In other words, there is no scope for „Multibaggers‟

as they are known in the Equity markets. Don‟t expect your investment to double or triple

overnight. However, this also limits your downside and you will not have to face almost complete

erosion of your capital. Portfolio diversification, while shielding downside, also limits your upside.

5. May not benefit from a Sectorial / Industry boom:

If you are investing in an equity diversified fund, you will find little impact of a boom in a particular

sector, particularly if it is under-represented. For example, while the banking sector enjoyed a rally

in 2004-2008, an diversified fund which investors usually invest in, was not able to take full

advantage. This disadvantage can however be offset by investing in sectorial funds if you are

convinced of the long term prospects of a particular sector like pharma, infra etc.

6. Questionable expertise of Fund Managers in Actively managed Funds:

Although conclusive evidence about Indian markets is not available, more than half the Fund

Managers in developed markets under-perform their respective benchmark indices. In a situation

like this, is it better to just invest in low cost index funds? While there may be some use for stock

picking in small cap and mid cap categories, is it really required for large caps? How has the

performance of Indian Fund managers been after adjusting for the costs? I don‟t have an answer for

these questions now, but these are important questions that need to be answered before you go for

Mutual Fund investments.

7. Personal Tax situation is not considered:

When you invest in a Mutual Fund, your money is pooled together with others and your personal

tax situation is not considered while making investment decisions. The most you can do is choose

between Growth, Dividend Payout or Dividend Reinvestment Options. Suppose you are a 20 year

old female investor who is not required to pay Income Tax as your Income does not make the cut.

Now, in a debt based fund, if there are short term capital gains triggered by selling the underlying

securities, the fund has to pay short term capital gains while you, if you had purchased that

particular security directly would not have to do so. Thus, investing through Mutual Funds can

mean that you cannot plan your investment, taking into account your unique tax situation.

8. Fluctuating corpus and need for liquidity:

This is the single biggest disadvantage of investing through Mutual Funds, especially Open ended

ones. The Fund Manager cannot really invest all his corpus in long term bets, which will fetch

excellent results over the years. He will have to maintain some liquidity because investors can easily

demand their money back by redeeming the MF units. This money will be parked in low return,

high liquidity instruments and so you won‟t fetch as good returns as you can on your invested

money. In a similar manner, due to herd behavior, when there is a bear market and good buying

opportunities present themselves, he will find his corpus reduced due to investors wanting to

redeem their units. In a bull market, when most good opportunities have exhausted, he will have to

find ways to park the excess money brought in by new investors lured by the short term results.

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Chapter:- 2 Research

Methodology

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2.1Research objective To study the performance of mutual fund in India.

To study the behavior of Indian individual investors towards the investment of their savings.

To study the perception of Indian individual investors towards the investment in mutual

fund.

2.2Method Of Data Collection

The present study was conducted by gathering both Primary and Secondary data.

1) Primary data collection method:-

The primary data was collected through a questionnaire.

2) Secondary data collection method:-

The Secondary data was collected from Research based online portals and websites of various

statutory and non-statutory organizations such as the Association of Mutual Funds in India,

Securities and Exchange Board of India.

2.3 Sample Profile:

200 respondents selected for collecting primary data.

The sample required for the study has been selected through CRISIL mutual fund ranking from the

available list of mutual fund sector in the market. Broadly the sample of 10 mutual fund sector is

taken.

The study has taken 10 broad sectors of funds

Large Cap Fund

Small & Mid Cap Fund

Diversified Fund

ELSS Fund

Index Fund

Balanced Fund

Money Market Fund

Debt Fund

MIP Fund

Gilt Long Term Fund

2.4 Period of the Study:

To find out the behavior of investor the survey was conducted for the period of two months.

To find out the performance of mutual funds the study covered a period of 5 years from 1-Jan-2009

to 31-Dec-2013 to assess the mutual fund on the basis of CRISIL mutual fund ranking.

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2.5 Tools & Methods:

1. Beta:- It is a ratio that measures the market risk of securities or a fund. If the beta ratio exceeds one, the

fund is more sensitive than funds in general to the fluctuations of the stock market. The beta may

also be negative, which means that the value of the fund will, on average, move to the opposite

direction than the general market development.

Beta measures the sensitivity of rates of return on a fund to general market movements. It also

measures the volatility of the fund, as compared to that of the overall market. The Market's beta is

set at 1.00; a beta higher than 1.00 is considered to be more volatile than the market, while a beta

lower than 1.00 is considered to be less volatile.

Beta measures the volatility of the fund‟s value relative to the volatility of the fund‟s benchmark

value. The Beta coefficient indicates the percentage change of the fund‟s value when the benchmark

value changes by one percentage point.

β = Cov(y,x)

Var(x)

Cov (y,x) = Covariance between return of fund and return of benchmark index

Var (x) = Variance of the benchmark index

2. Standard Deviation:- Standard deviation is applied to the annual rate of return of an investment to measure the

investment's volatility. Standard deviation is also known as historical volatility and is used by

investors as a gauge for the amount of expected volatility.

3. Sharpe Ratio:- Sharpe (1966) developed a composite index which is very similar to the Treynor measure. The only

difference being the use of standard deviation instead of beta, to measure the portfolio risk, in other

words except it uses the total risk of the portfolio rather than just the systematic risk.

Sp= The standard deviation of the portfolio.

PR = Return of the portfolio.

fR = Risk free rate.

While a high and positive Sharpe Ratio shows a superior risk-adjusted performance of a fund, a low

and negative Sharpe Ratio is an indication of unfavorable performance. If the Sharpe figure is

positive, the risk taken has paid off, and if the figure is negative, the returns are lower than the risk-

free rate.

4. Alpha:- A measure of performance on a risk-adjusted basis. Alpha takes the volatility (price risk) of a

mutual fund and compares its risk-adjusted performance to a benchmark index. The excess return of

the fund relative to the return of the benchmark index is a fund's alpha.

The abnormal rate of return on a security or portfolio in excess of what would be predicted by an

equilibrium model like the capital asset pricing model (CAPM).

Alpha is one of five technical risk ratios; the others are beta, standard deviation, R-squared, and the

Sharpe ratio. These are all statistical measurements used in modern portfolio theory (MPT). All of

these indicators are intended to help investors determine the risk-reward profile of a mutual fund.

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Simply stated, alpha is often considered to represent the value that a portfolio manager adds to or

subtracts from a fund'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%.

α = Ri – [ Rf + β (Rm – Rf) ] Ri = Portfolio Return

Rf = Risk Free Rate

β = Portfolio Beta

Rm = Market Return

5. Return:- A return is a measurement of how much an investment has increased or decreased in value over any

given time period. In particular, an annual return is the percentage by which it increased or

decreased over any twelve-month period.

Return = (P1 – P0)

P0

6. Treynor ratio:- A ratio developed by Jack Treynor that measures returns earned in excess of that which could have

been earned on a riskless investment per each unit of market risk.

In other words, the Treynor ratio is a risk-adjusted measure of return based on systematic risk. It is

similar to the Sharpe ratio, with the difference being that the Treynor ratio uses beta as the

measurement of volatility.

Treynor ratio is also known as the "reward-to-volatility ratio".

Treynor Ratio = Rp - Rf

β Rp:- Return Of The Portfolio

Rf:- Risk Free Rate

β:- Beta

7. Chi- square tests:-

The Chi-square test is intended to test how likely it is that an observed distribution is due to chance.

It is also called a "goodness of fit" statistic, because it measures how well the observed distribution

of data fits with the distribution that is expected if the variables are independent. A Chi-square test is

designed to analyze categorical data. That means that the data has been counted and divided into

categories.

χ2 = ∑ (F0 – Fe)

2

Fe

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2.6 Hypothesis: 1. H0: The age of the investors and risk willingness are independent of each other.

2. H0: The age of the investors and expected returns from investments are independent of each other.

3. H0: The age of the investors and knowledge related to mutual funds are independent of each

other.

4. H0: The age of the investors and features of the mutual funds that attract most of the investors are

independent of each other.

5. H0: Income of the individual investors and annual investment in a mutual funds are independent

of each other.

6. H0: Gender of the investors and risk willingness are independent of each other.

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Chapter:- 3 Data Analysis

of Mutual Fund

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3.1 Large Cap Fund

Scheme Name Return SD Beta Sharpe Treynor Alpha

IDFC Equity Fund - Plan A (G) 29.37 20.85 0.73 1.08 32.3 10.92

Quantum Long-Term Equity (G) 26.04 20.39 0.83 0.97 24.33 7.63

ICICI Pru Focused Bluechip Eqty (G) 24.65 19.89 0.83 0.9 21.92 5.91

Can Robeco Equity Divers (G) 24.22 21.95 0.9 0.84 20.23 5.72

UTI Opportunities Fund (G) 23.65 20.62 0.85 0.86 21.11 5.52

Birla SL Frontline Equity (G) 22.65 22.18 0.93 0.78 18.23 3.84

Principal Large Cap Fund (G) 22.49 22.07 0.92 0.78 18.23 3.83

HDFC Top 200 Fund (G) 22.37 23.35 0.96 0.74 17.14 3.28

UTI Equity Fund (G) 22.06 19.09 0.78 0.85 20.86 4.93

SBI Magnum Equity Fund (G) 21.71 21.79 0.91 0.76 17.61 3.28

L&T India Large Cap Fund (G) 21.66 20.08 0.84 0.8 18.93 3.9

UTI India Lifestyle Fund(G) 21.3 18.12 0.74 0.85 21.04 4.73

L&T Equity Fund (G) 21.08 20.08 0.84 0.78 18.3 3.46

SBI Blue Chip Fund (G) 21 22.83 0.95 0.7 16.09 2.28

Franklin India Bluechip (G) 20.95 19.88 0.83 1.67 18.38 3.46

Birla Sun Life Top 100 (G) 20.82 20.54 0.85 0.76 17.68 3.13

Tata Pure Equity Fund (G) 20.21 19.97 0.82 0.74 17.62 2.92

ICICI Pru Top 200 Fund (G) 20.18 21.8 0.9 0.7 15.96 2.12

ICICI Pru Top 100 Fund (G) 19.99 19.72 0.81 0.74 17.62 2.92

JPMorgan India Equity Fund (G) 19.89 20.09 0.84 0.73 16.84 2.44

UTI Dividend Yield Fund (G) 19 18.79 0.76 0.73 17.49 2.65

HDFC Focused Large-Cap (G) 18.56 22.5 0.91 0.62 14.03 0.7

UTI Master Plus US (G) 18.54 20.81 0.87 0.65 14.44 1.24

DSP-BR Top 100 Equity - RP (G) 17.81 19.95 0.82 0.64 14.62 0.86

UTI Mastershare (G) 17.5 18.86 0.78 0.67 15.35 1.24

UTI Leadership Equity Fund (G) 17.6 20.95 0.87 0.61 12.54 0.12

UTI Top 100 Fund (G) 17.56 19.53 0.8 0.64 14.69 0.84

BNP Paribas Equity Fund (G) 17.49 18.52 0.76 0.66 15.45 1.27

Kotak 50 (G) 16.97 19.59 0.8 0.62 14.03 0.42

Baroda Pioneer Growth (G) 16.01 23.38 0.98 0.51 10.46 -2.28

LIC NOMURA Equity Fund (G) 15.99 23.27 0.97 0.51 10.51 -2.25

Sundaram Select Focus - RP (G) 14.93 23.22 0.95 0.47 9.63 -2.9

IDFC Imperial Equity - Plan A (G) 14.52 0.47 0.79 0.47 10.01 -1.11

HSBC Equity Fund (G) 13.88 18.38 0.76 0.5 10.75 -1.84

Reliance Focused Large Cap - RP (G) 13.85 22.09 0.9 0.44 9.02 -3.24

UTI Contra Fund (G) 12.24 22.64 0.91 0.37 7.09 -4.76

JM Multi Strategy Fund (G) 11.89 27.18 1.1 0.32 5.16 -7.29

Average 19.48 20.42 0.86 0.7151 16.0997 1.889

For finding Sharpe Ratio, Treynor Ratio and Alpha I have taken Risk Free Rate is 8.88%, Market

Return (CNX Nifty) is 17.68%.

In the above table I have select mutual funds on the basis of CRISIL mutual fund ranking. I had

taken last 5 year data and on that basis find last 5 year return of all mutual funds. In large cap fund

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all 10 mutual fund return average is 19.48%. In that IDFC Equity Fund - Plan A (G) give a 29.37%

return in the last 5 years which is highest in these mutual funds. JM Multi Strategy Fund (G) gives

11.89% return in the last 5 years which is lowest in these mutual funds.

In large cap fund all mutual fund average SD is 20.42. In that JM Multi Strategy Fund (G) SD high

in these mutual funds, so this mutual fund volatility high compare to other mutual fund and also this

mutual fund is more risky compared to other. IDFC Imperial Equity - Plan A (G) SD low on this

mutual fund, so this mutual fund volatility low compare to other mutual fund and also this mutual

fund is less risky comparing to other.

I have found beta of mutual funds and its average is 0.86. Here in that JM Multi Strategy Fund (G)

beta high in this all mutual funds. Here JM Multi Strategy Fund (G) beta above 1 so it‟s high

volatile. IDFC Equity Fund - Plan A (G) beta is 0.73 so it‟s less volatile comparable to the other.

I have found Sharpe Ratio of mutual funds and its average is 0.7151. In that Franklin India Bluechip

(G) Sharpe Ratio high compared to other mutual funds, it gives superior risk-adjusted performance

so here you earn more than risk free rate. JM Multi Strategy Fund (G) Sharpe Ratio low compare to

other mutual funds, this fund manager also gives superior risk-adjusted performance, but compare

to other mutual fund it gives less risk-adjusted performance.

I have found treynor ratio of mutual funds and its average is 16.0997. IDFC Equity Fund - Plan A

(G) treynor ratio high compared to other mutual funds, it gives superior risk adjusted performance.

JM Multi Strategy Fund (G) treynor ratio low compared to other mutual funds, this mutual fund also

gives superior risk-adjusted performance, but compare to other mutual fund it gives less risk-

adjusted performance.

I have found Alpha of mutual funds and its average is 1.889. In that IDFC Equity Fund - Plan A (G)

Alpha high compared to other mutual funds, it gives risk-adjusted performance, here you earn more

than risk free rate. JM Multi Strategy Fund (G) Alpha negative, so it‟s low compared to other

mutual funds, negative alpha would indicate an underperformance.

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3.2 Small & Mid Cap Fund

Scheme Name Return SD Beta Sharpe Treynor Alpha

SBI Emerging Busi (G) 34 28.4 0.95 0.97 29.54 12.39

DSP-BR Micro Cap Fund - RP (G) 32.8 28.58 1 0.93 26.69 10.71

ICICI Pru Discovery Fund (G) 31.73 23.98 0.84 1.04 30.82 11.58

SBI Magnum Global Fund (G) 31.15 25.99 0.9 0.95 28.36 10.58

HDFC MidCap Opportunities (G) 30.31 21.46 0.77 1.09 31.72 11.09

SBI Magnum Midcap Fund (G) 29.67 30.38 1.04 0.81 22.89 8.13

Franklin (I) Smaller Cos (G) 29.44 25.39 0.91 0.92 26.06 9.01

IDFC Premier Equity - A (G) 29.37 20.85 0.73 1.08 32.3 10.92

Principal Emerging Bluechip(G) 29.26 27.36 0.99 0.87 23.79 8.1

Birla Sun Life MNC Fund (G) 28.34 17.79 0.6 1.18 37.39 11.59

Franklin India Prima Fund (G) 27.91 23.89 0.85 0.92 25.96 8.36

UTI Mid Cap (G) 27.78 24.58 0.88 0.89 25.1 8.08

Sundaram Select Midcap -RP (G) 27.56 29.93 1.06 0.76 20.4 5.9

DSP-BR Small & Mid Cap -RP (G) 27.26 27.01 0.98 0.82 22.05 6.66

UTI Master Value Fund (G) 26.72 24.94 0.9 0.85 23.38 7.01

IDFC Sterling Equity Fund - G 25.36 20.21 0.71 0.95 27.45 7.87

ICICI Pru MidCap Fund (G) 24.33 26.28 0.93 0.65 16.83 4.04

Tata Mid Cap Growth Fund (G) 23.98 24.03 0.86 0.78 21.19 5.09

Birla Sun Life Midcap Fund (G) 23.63 27.42 0.98 0.7 18.22 3.62

Reliance Long Term Equity (G) 20.85 23.01 0.81 0.7 18.66 3.19

Kotak Mid-Cap Fund (G) 20.58 25.63 0.93 0.64 16.02 3.31

Sundaram Rural India Fund (G) 20.3 23.27 0.83 0.66 17.42 2.38

Sundaram SMILE Fund (G) 19.5 28.68 1.03 0.56 13.36 -0.17

Sundaram Equity Multiplier (G) 16.5 23.77 0.83 0.41 9.33 -1.92

Average 26.60 25.12 0.89 0.8388 23.5388 6.98

For finding Sharpe Ratio, Treynor Ratio and Alpha I have taken Risk Free Rate is 8.88%, Market

Return (CNX Nifty) is 17.68%.

In the above table I have select mutual funds on the basis of CRISIL mutual fund ranking. I had

taken last 5 year data and on that basis find last 5 year return of all mutual funds. In small & mid

cap fund all mutual fund return average is 26.60%. In that SBI Emerging Busi (G) a give 34%

return in the last 5 years which is highest in these mutual funds. Sundaram Equity Multiplier (G)

gives 16.5% return in the last 5 years which is lowest in these mutual funds.

In small & mid cap fund all mutual funds average SD is 25.12. In that SBI Magnum Midcap Fund

(G) SD high in these mutual funds, so this mutual fund volatility high compare to other mutual fund

and also this mutual fund is more risky compared to other. Birla Sun Life MNC Fund (G) SD low

on this mutual fund, so this mutual fund volatility low compare to other mutual fund and also this

mutual fund is less risky comparing to other.

I have found beta of mutual funds and its average is 0.89. Here in that Sundaram Select Midcap -RP

(G) beta high in these mutual funds. Here Sundaram Select Midcap -RP (G) beta above 1 so it‟s high

volatile and also compared to other it‟s highly volatile. Birla Sun Life MNC Fund (G) beta is 0.6 so

it‟s less volatile comparable to the other.

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I have found Sharpe Ratio of mutual funds and its average is 0.8388. In that Birla Sun Life MNC

Fund (G) Sharpe Ratio high compared to other mutual funds, it gives superior risk-adjusted

performance so here you earn more than risk free rate. Sundaram equity multiplier (G) Sharpe Ratio

low compare to other mutual funds, this fund manager also gives superior risk-adjusted

performance, but compare to other mutual fund it gives less risk-adjusted performance.

I have found treynor ratio of mutual funds and its average is 23.5388. Birla Sun Life MNC Fund (G)

treynor ratio high compared to other mutual funds, it gives superior risk adjusted performance.

Sundaram Equity Multiplier (G) treynor ratio low compared to other mutual funds, this mutual fund

also gives superior risk-adjusted performance, but compare to other mutual fund it gives less risk-

adjusted performance.

I have found Alpha of mutual funds and its average is 6.98. In that SBI Emerging Busi (G) Alpha

high compared to other mutual funds, it gives risk-adjusted performance, so here you earn more

than risk free rate. Sundaram Equity Multiplier (G) Alpha negative, so it‟s low compared to other

mutual funds, negative alpha would indicate an underperformance.

~ 16 ~

3.3 Diversified Fund

Scheme Name Return SD Beta Sharpe Treynor Alpha

Reliance Equity Oppor - RP (G) 30.24 23.64 0.85 1 28.9 10.31

Mirae (I) Opportunities-RP (G) 27.61 23.38 0.98 0.92 22.22 7.75

Tata Ethical Fund (G) 27.26 20.52 0.8 1 27.03 9.16

HDFC Equity Fund (G) 26 24.85 1.01 0.81 19.24 5.31

L&T Special Situations(G) 25.5 24.66 1.01 0.81 19.28 5.19

Franklin High Growth Cos (G) 25.35 23.71 0.84 0.83 23.1 6.39

Tata Dividend Yield Fund (G) 25.1 19.15 0.77 0.98 25.16 7.6

UTI MNC Fund (G) 24.76 16.46 0.54 1.07 34.66 10.14

HDFC Capital Builder Fund (G) 24.75 20.69 0.85 0.91 22.44 6.47

Morgan Stanley A.C.E. (G) 24.35 22.16 0.92 0.84 20.3 5.43

Taurus Star Share (G) 23.64 28.09 1.12 0.64 14.88 1.96

ICICI Pru Dynamic Plan (G) 23.5 17.99 0.72 0.96 24.43 6.7

Birla SL India GenNext (G) 23.4 19.08 0.64 0.91 27.61 7.26

Tata Equity P/E Fund (G) 22.5 23.5 0.84 0.73 19.54 3.88

UTI Services Industries (G) 21.6 21.84 0.87 0.74 17.77 4.92

Franklin India Prima Plus (G) 21.55 20.55 0.84 0.78 18.54 3.7

SBI Magnum Multiplier Plus (G) 21.24 20.98 0.85 0.76 18.25 3.6

Birla SL Dividend Yield (G) 21.17 21.34 0.78 0.74 19.8 3.55

Franklin (I) Flexi Cap (G) 20.92 22.67 0.93 0.7 16.29 4.01

Templeton (I) Growth Fund (G) 20.59 24.46 1 0.66 14.87 1.64

DSP-BR Opportunities - RP (G) 20.31 20.29 0.84 0.74 17.38 2.86

Tata Equity Opp. Fund (G) 20.24 22.69 0.91 0.67 15.94 3.67

Birla Sun Life Equity Fund (G) 20.18 24 0.99 0.65 14.6 1.27

HDFC Growth Fund (G) 20.02 21.57 0.88 0.7 16.12 2.15

Reliance RSF - Equity (G) 19.81 26.15 1.05 0.6 13.37 2.25

Reliance Growth Fund - RP (G) 19.76 24.51 0.88 0.63 15.82 1.36

Birla SL Long Term Advan. (G) 19.71 21.56 0.88 0.68 15.79 3.39

HDFC Premier MultiCap (G) 19.59 24.21 0.97 0.62 14.32 1.11

PineBridge India Equity - SP (G) 19.22 19.96 0.79 0.7 16.99 3.81

DSP-BR Equity Fund - RP (G) 19.17 22.46 0.91 0.64 14.72 1.22

Morgan Stanley Growth (G) 19.1 21.8 0.9 0.65 14.79 1.18

Reliance Top 200 Fund-RP (G) 18.86 22.04 0.91 0.64 14.44 0.97

Principal Growth Fund (G) 18.84 20.9 0.84 0.64 14.66 1.06

HDFC Core & Satellite Fund (G) 18.82 25.08 1 0.59 13.15 1.93

Kotak Opportunities Fund (G) 17.86 22.72 0.93 0.59 13.05 1.41

HSBC India Opportunities (G) 17.65 18.7 0.76 0.66 15.28 1.2

Sundaram Growth Fund - RP (G) 17.37 23.4 0.96 0.55 11.84 -1.03

Birla SL Advantage Fund (G) 17.25 25.33 1.04 0.52 10.94 -0.08

SBI Magnum Multicap Fund (G) 16.87 21.88 0.9 0.57 12.28 -0.74

Franklin India Oppor. (G) 16.64 21.73 0.9 0.56 12.07 -0.95

SBI Contra Fund (G) 16.33 23.1 0.95 0.52 11.1 -1.69

Reliance Vision Fund - RP (G) 16.28 24.97 1.01 0.5 10.39 -2.16

~ 17 ~

Birla SL Special Situations(G) 15.77 23.96 0.96 0.49 10.36 -2.19

IDFC Classic Equity - Plan A (G) 15.5 19.85 0.81 0.48 10.39 -0.77

Average 20.96 22.33 0.89 0.71 17.37 3.10

For finding Sharpe Ratio, Treynor Ratio and Alpha I have taken Risk Free Rate is 8.88%, Market

Return (CNX Nifty) is 17.68%.

In the above table I have select mutual funds on the basis of CRISIL mutual fund ranking. I had

taken last 5 year data and on that basis find last 5 year return of all mutual funds. In diversified fund

all mutual fund return average is 20.96%. In that Reliance Equity Oppor - RP (G) has gives 30.24%

return in the last 5 years which is highest in these mutual funds. IDFC Classic Equity - Plan A (G)

gives 15.5% return in the last 5 years which is lowest in these mutual funds.

In diversified fund all mutual funds average SD is 22.33. In that Taurus Star Share (G) SD high in

these mutual funds, so this mutual fund volatility high compare to other mutual fund and also this

mutual fund is more risky compared to other. UTI MNC Fund (G) SD low on this mutual fund, so

this mutual fund volatility low compare to other mutual fund and also this mutual fund is less risky

comparing to other.

I have found beta of mutual funds and its average is 0.89. Here in that Taurus Star Share (G) beta

high in these mutual funds. Here Taurus Star Share (G) beta above 1 so it‟s high volatile and also

compared to other it‟s highly volatile. UTI MNC Fund (G) beta is 0.54 so it‟s less volatile

comparable to the other.

I have found Sharpe Ratio of mutual funds and its average is 0.71. In that UTI MNC Fund (G)

Sharpe Ratio high compared to other mutual funds, it gives superior risk-adjusted performance so

here you earn more than risk free rate. IDFC Classic Equity - Plan A (G) Sharpe Ratio low compare

to other mutual funds, this fund manager also gives superior risk-adjusted performance, but

compare to other mutual fund it gives less risk-adjusted performance.

I have found treynor ratio of mutual funds and its average is 17.37. UTI MNC Fund (G) treynor ratio

high compared to other mutual funds, it gives superior risk adjusted performance. Birla SL Special

Situations(G) treynor ratio low compared to other mutual funds, this mutual fund also gives superior

risk-adjusted performance, but compare to other mutual fund it gives less risk-adjusted

performance.

I have found Alpha of mutual funds and its average is 3.10. In that Reliance Equity Oppor - RP

(G) Alpha high compared to other mutual funds, it gives risk-adjusted performance, so here you

earn more than risk free rate. Birla SL Special Situations(G) Alpha negative, so it‟s low compared to

other mutual funds, negative alpha would indicate an underperformance.

~ 18 ~

3.4 ELSS Fund

Scheme Name Return SD Beta Sharpe Treynor Alpha

ICICI Pru Tax Plan (G) 26.97 22.15 0.9 0.94 23.6 7.69

Can Robeco Eqty TaxSaver (G) 24.86 22.53 0.91 0.85 20.99 5.81

HDFC Long Term Advantage (G) 24.32 21.4 0.87 0.87 21.24 5.76

Franklin India Tax Shield (G) 23.5 19.15 0.79 0.9 22.16 5.68

HDFC Tax Saver (G) 23.27 21.76 0.89 0.81 19.6 4.68

Reliance Tax Saver (ELSS) (G) 22.36 23.36 0.92 0.75 18.11 3.98

DSP-BRTax Saver Fund (G) 22.25 21.39 0.88 0.79 18.74 3.97

Birla SL Tax Relief 96 (G) 22 25.15 1.03 0.68 15.55 2.1

Religare Invesco Tax Plan (G) 21.61 19.9 0.8 0.81 19.55 5.74

BNP Paribas Tax Advantage Plan (G) 20.64 18.87 0.77 0.8 19.41 3.82

SBI Magnum Tax Gain (G) 20.63 21.53 0.89 0.72 16.77 2.53

IDFC Tax Advantage (ELSS) (G) 20.33 20.36 0.81 0.73 17.81 3.1

L&T Tax Advantage (G) 20.32 20.01 0.82 0.74 17.8 4.38

Birla Sun Life Tax Plan (G) 19.64 21.5 0.88 0.68 15.8 1.82

Principal Tax Savings 18.58 20.67 0.83 0.66 15.5 1.56

HSBC Tax Saver Equity Fund (G) 18.51 21.39 0.86 0.64 14.94 2.65

UTI Equity Tax Saving (G) 17.03 19.88 0.82 0.61 13.8 0.19

Sundaram Tax Saver (G) 16.89 23.44 0.95 0.54 11.12 -1.21

Principal Personal Tax Saver 16.63 21.91 0.9 0.55 12.08 0.58

Tata Tax Saving Fund 16.44 24.45 0.86 0.44 9.92 2.16

Average 20.84 21.54 0.87 0.73 17.22 3.35

For finding Sharpe Ratio, Treynor Ratio and Alpha I have taken Risk Free Rate is 8.88%, Market

Return (CNX Nifty) is 17.68%.

In the above table I have select mutual funds on the basis of CRISIL mutual fund ranking. I had

taken last 5 year data and on that basis find last 5 year return of all mutual funds. In ELSS fund all

mutual fund return average is 20.84%. In that ICICI Pru Tax Plan (G) give a 26.97% return in the last

5 years which is highest in these mutual funds. Tata Tax Saving Fund gives 16.44% return in the last

5 years which is lowest in these mutual funds.

In ELSS fund all mutual funds average SD is 21.54. In that Birla SL Tax Relief 96 (G) SD high in

these mutual funds, so this mutual fund volatility high compare to other mutual fund and also this

mutual fund is more risky compared to other. BNP Paribas Tax Advantage Plan (G) SD low in this

mutual fund, so this mutual fund volatility low compare to other mutual fund and also this mutual

fund is less risky comparing to other.

I have found beta of this mutual funds and its average is 0.87. Here in that Birla SL Tax Relief 96

(G) beta high in these mutual funds. Here Birla SL Tax Relief 96 (G) beta Above 1 so it‟s high

volatile. BNP Paribas Tax Advantage Plan (G) beta is 0.77 so it‟s less volatile comparable to the other.

I have found Sharpe Ratio of mutual funds and its average is 0.73. In that ICICI Pru Tax Plan (G)

Sharpe Ratio high compared to other mutual funds, it gives superior risk-adjusted performance so

here you earn more than risk free rate. Tata Tax Saving Fund Sharpe Ratio low compare to other

mutual funds, this fund manager also gives superior risk-adjusted performance, but compare to

other mutual fund it gives less risk-adjusted performance.

~ 19 ~

I have found treynor ratio of mutual funds and its average is 17.22. ICICI Pru Tax Plan (G) treynor

ratio high compared to other mutual funds, it gives superior risk adjusted performance. Tata Tax

Saving Fund treynor ratio low compared to other mutual funds, this mutual fund also gives superior

risk-adjusted performance, but compare to other mutual fund it gives less risk-adjusted

performance.

I have found Alpha of mutual funds and its average is 3.35. In that ICICI Pru Tax Plan (G) Alpha high

compared to other mutual funds, it gives risk-adjusted performance, so here you earn more than the

risk free rate. Sundaram Tax Saver (G) Alpha negative, so it‟s low compared to other mutual funds,

negative alpha would indicate an underperformance.

~ 20 ~

3.5 Index Fund

Scheme Name Return SD Beta Sharpe Treynor Alpha

Franklin (I) Index - BSE (G) 18.77 22.45 0.94 0.63 13.83 0.48

GS Nifty BeES 18.57 22.78 0.96 0.62 13.41 0.17

HDFC Index - Sensex Plan 17.76 22.49 0.93 0.54 11.51 0.2

UTI Nifty Index Fund (G) 17.57 22.7 0.95 0.58 12.42 -0.64

Franklin (I) Index - NSE (G) 17.52 22.79 0.95 0.53 11.07 -0.14

HDFC Index - Nifty Plan 17 22.63 0.94 0.5 10.26 -0.8

Average 17.87 22.64 0.95 0.57 12.08 -0.12

For finding Sharpe Ratio, Treynor Ratio and Alpha I have taken Risk Free Rate is 8.88%, Market

Return (CNX Nifty) is 17.68%.

In the above table I have select mutual funds on the basis of CRISIL mutual fund ranking. I had

taken last 5 year data and on that basis find last 5 year return of all mutual funds. In index fund all

mutual fund return average is 17.87%. In that Franklin (I) Index - BSE (G) give a 18.77% return in

the last 5 years which is highest in these mutual funds. HDFC Index - Nifty Plan has gives 17%

return in the last 5 years which is lowest in these mutual funds.

In index fund all mutual funds average SD is 22.64. In that Franklin (I) Index - NSE (G) SD high in

these mutual funds, so this mutual fund volatility high compare to other mutual fund and also this

mutual fund is more risky compared to other. Franklin (I) Index - BSE (G) SD low on this mutual

funds, so this mutual fund volatility low compare to other mutual fund and also this mutual fund is

less risky comparing to other.

I have found beta of mutual funds and its average is 0.95. Here in that GS Nifty BeES beta high in

these mutual funds. Here GS Nifty BeES beta below 1 so it‟s less volatile but compared to other it‟s

highly volatile. HDFC Index - Sensex Plus Fund beta is 0.93 so it‟s less volatile comparable to the

other.

I have found Sharpe Ratio of mutual funds and its average is 0.57. In that Franklin (I) Index - BSE

(G) Sharpe Ratio high compared to other mutual funds, it gives superior risk-adjusted performance

so here you earn more than risk free rate. HDFC Index - Nifty Plan Sharpe Ratio low compare to

other mutual funds, this fund manager also gives superior risk-adjusted performance, but compare

to other mutual fund it gives less risk-adjusted performance.

I have found treynor ratio of mutual funds and its average is 12.08. Franklin (I) Index - BSE (G)

treynor ratio high compared to other mutual funds, it gives superior risk adjusted performance.

HDFC Index - Nifty Plan treynor ratio low compared to other mutual funds, this mutual fund also

gives superior risk-adjusted performance, but compare to other mutual fund it gives less risk-

adjusted performance.

I have found Alpha of mutual funds and its average is -0.12. In that Franklin (I) Index - BSE (G)

Alpha high compared to other mutual funds, it gives risk-adjusted performance compares, so here

you earn more than risk free rate. HDFC Index - Nifty Plan Alpha negative, so it‟s low compare to

other mutual funds, negative alpha would indicate an underperformance.

~ 21 ~

3.6 Balanced Fund

Scheme Name Return SD Sharpe

HDFC Balanced Fund (G) 23.82 15.85 1.09

HDFC Prudence Fund (G) 23.69 19.63 0.9

Reliance RSF - Balanced (G) 21.65 18.62 0.85

Tata Balanced Fund (G) 20.6 16.39 0.87

ICICI Pru Balanced Fund (G) 19.97 13.59 1.01

ICICI Pru Balanced Adv (G) 19.68 12.45 1.03

Birla Sun Life 95 Fund (G) 18.51 16.88 0.76

Can Robeco Balance (G) 17.76 17.33 0.7

SBI Magnum Balanced Fund (G) 17.5 17.75 0.66

UTI Balanced Fund (G) 16.85 16.65 0.65

Kotak Balance 15.77 14.95 0.69

FT India Balanced Fund (G) 15.44 14.82 0.68

DSP-BR Balanced Fund (G) 15.5 16.87 0.54

Average 18.98 16.29 0.80

For finding Sharpe Ratio I have taken Risk Free Rate is 8.88%.

In the above table I have select mutual funds on the basis of CRISIL mutual fund ranking. I had

taken last 5 year data and on that basis find last 5 year return of all mutual funds. In balanced fund

all mutual fund return average is 18.98%. In that HDFC Balanced Fund (G) give a 23.82% return in

the last 5 years which is highest in these mutual funds. DSP BlackRock Balanced G gives 15.5%

return in the last 5 years which is lowest in these mutual funds.

In balanced fund all mutual funds average SD is 16.29. In that HDFC Prudence Fund (G) SD high in

these mutual funds, so this mutual fund volatility high compare to other mutual fund and also this

mutual fund is more risky compared to other. ICICI Pru Balanced Adv (G) SD low on this mutual

funds, so this mutual fund volatility low compare to other mutual fund and also this mutual fund is

less risky comparing to other.

I have found Sharpe Ratio of mutual funds and its average is 0.80. In that HDFC Balanced Fund (G)

Sharpe Ratio high compared to other mutual funds, it gives superior risk-adjusted performance so

here you earn more than risk free rate. DSP BlackRock Balanced G Sharpe Ratio low compare to

other mutual funds, this fund manager also gives superior risk-adjusted performance, but compare

to other mutual fund it gives less risk-adjusted performance.

~ 22 ~

3.7 Money Market Fund

Scheme Name Return SD Sharpe

BNP Paribas Overnight Fund -IP (G) 8.05 0.54 1.7

Birla SL FRF - STP - Reg. (G) 7.99 0.58 1.54

Templeton (I) TMA- Liquid -SIP (G) 7.92 0.61 1.48

Kotak Liquid - Plan A (G) 7.84 0.6 1.46

ICICI Pru Liquid Plan (G) 7.83 0.59 1.56

Reliance Liquidity Fund (G) 7.81 0.62 1.45

HDFC Cash Mgmt - SP (G) 7.77 0.6 1.54

UTI Liquid Cash - (Inst) (G) 7.76 0.61 1.41

Can Robeco Liquid - Reg Plan (G) 7.75 0.6 1.52

IDFC Cash Fund - Regular (G) 7.74 0.6 1.49

Tata Money Market Fund Plan A (G) 7.73 0.66 1.52

JM High Liquidity (G) 7.72 0.62 1.49

Sundaram Money-Super Inst (G) 7.72 0.64 1.51

Kotak Floater STP (G) 7.71 0.68 1.35

Baroda Pioneer Liquid -Plan A (G) 7.65 0.63 1.44

HDFC Liquid Fund (G) 7.62 0.61 1.41

Average 7.79 0.61 1.49

For finding Sharpe Ratio I have taken Risk Free Rate is 8.88%.

In the above table I have select mutual funds on the basis of CRISIL mutual fund ranking. I had

taken last 5 year data and on that basis find last 5 year return of all mutual funds. In money market

fund all mutual fund return average is 7.79%. In that BNP Paribas Overnight Fund -IP (G) gives

8.05% return in the last 5 years which is highest in these mutual funds. HDFC Liquid Fund (G)

7.62% return in the last 5 years which is lowest in these mutual funds.

In money market fund all mutual funds average SD is 0.61. In that Kotak Floater STP (G) SD higher

in these mutual funds, so this mutual fund volatility high compare to other mutual fund and also this

mutual fund is more risky compared to other. BNP Paribas Overnight Fund -IP (G) SD low on this

mutual fund, so this mutual fund volatility low compare to other mutual fund and also this mutual

fund is less risky comparing to other.

I have found Sharpe Ratio of mutual funds and its average is 1.49. In that BNP Paribas Overnight

Fund -IP (G) Sharpe Ratio high compared to other mutual funds, it gives superior risk-adjusted

performance so here you earn more than risk free rate. Kotak Floater STP (G) Sharpe Ratio low

compare to other mutual funds, this fund manager also gives superior risk-adjusted performance,

but compare to other mutual fund it gives less risk-adjusted performance.

~ 23 ~

3.8 Debt Fund

Scheme Name Return SD Sharpe

Templeton (I) ST Income -Retail (G) 9.03 1.72 2.56

Birla SL Short Term Opp-RP (G) 8.95 1.36 2.81

Birla SL Medium Term - RP (G) 8.76 1.61 2.34

Principal Income - Short Term (G) 8.31 1.44 2.92

Sundaram Bond Saver (G) 8.29 5.19 0.51

Reliance RSF - Debt - RP (G) 8.25 2.12 1.54

Principal Income - Short Term (G) 8.18 1.42 2.94

Birla SL Dynamic Bond -RP (G) 8.14 2.13 1.66

IDFC SSIF-STP Plan A (G) 7.97 1.75 2.25

HDFC High Interest - STP (G) 7.97 2.01 1.74

DWS Short Maturity - RP (G) 7.96 1.6 2.11

Reliance Short Term Fund (G) 7.84 2 1.9

HDFC Short Term Plan (G) 7.83 1.83 1.87

HDFC High Interest - STP (G) 7.81 1.99 1.74

Birla SL Short Term Fund (G) 7.81 2.36 0.98

JM Short Term Plan (G) 7.78 1.33 2.38

Can Robeco Short Term -RP (G) 7.73 1.26 2.48

ICICI Pru Income Opp.-RP (G) 7.69 4.47 0.52

JM Short Term Plan (G) 7.68 1.32 2.41

HSBC Income Fund - STP (G) 7.65 1.66 2.42

PineBridge Short Term - SP (G) 7.64 1.08 1.83

SBI Short Term Debt - RP (G) 7.63 1.42 1.82

Tata Short Term Bond Fund (G) 7.590 1.4 2.390

Kotak Bond-Short Term Plan (G) 7.57 1.99 1.5

Average 8.00 1.94 1.98

For finding Sharpe Ratio I have taken Risk Free Rate is 8.88%.

In the above table I have select mutual funds on the basis of CRISIL mutual fund ranking. I had

taken last 5 year data and on that basis find last 5 year return of all mutual funds. In debt fund all

mutual fund return average is 8%. In that Templeton (I) ST Income -Retail (G) gives 9.03% return in

the last 5 years which is highest in these mutual funds. Kotak Bond-Short Term Plan (G) gives

7.57% return in the last 5 years which is lowest in these mutual funds.

In debt fund all mutual funds average SD is 1.94. In that Sundaram Bond Saver (G) SD high in

these mutual funds, so this mutual fund volatility high compare to other mutual fund and also this

mutual fund is more risky compared to other. PineBridge Short Term - SP (G) SD low on this

mutual fund, so this mutual fund volatility low compare to other mutual fund and also this mutual

fund is less risky comparing to other.

I have found Sharpe Ratio of mutual funds and its average is 1.98. In that Principal Income - Short

Term (G) Sharpe Ratio high compared to other mutual funds, it gives superior risk-adjusted

performance so here you earn more than risk free rate. Sundaram Bond Saver (G) Sharpe Ratio low

~ 24 ~

compare to other mutual funds, this fund manager also gives superior risk-adjusted performance,

but compare to other mutual fund it gives less risk-adjusted performance.

~ 25 ~

3.9 MIP Fund

Scheme Name Return SD Sharpe

HDFC MIP - LTP (G) 12.02 6.86 0.93

Reliance MIP (G) 11.11 5.92 0.94

ICICI Prudential MIP 25 (G) 11 6.66 0.82

Birla SL MIP II-Wealth 25 (G) 10.68 6.15 0.87

Can Robeco MIP (G) 10.05 4.7 0.89

DSP BlackRock MIP Fund (G) 9.61 4.78 0.82

HSBC MIP - Savings Plan (G) 9.48 5.76 0.67

FT India MIP (G) 9.29 5.06 0.72

Tata MIP Plus Fund (G) 9.25 5.04 0.74

ICICI Pru MIP (G) 9 4.94 0.76

Birla SL MIP II-Savings 5 (G) 8.88 4.25 0.88

UTI Monthly Income Scheme (G) 8.85 3.93 0.85

HDFC MIP - STP (G) 8.76 4.52 0.71

Birla Sun Life MIP (G) 8.68 4.16 0.78

SBI Magnum MIP (G) 7.93 4.08 0.59

Kotak Monthly Income Plan (G) 7.77 5.15 0.44

LIC NOMURA MIP (G) 7.68 4.32 0.43

HSBC MIP - Regular Plan (G) 7.56 4.06 0.54

Average 9.31 5.02 0.74

For finding Sharpe Ratio I have taken Risk Free Rate is 8.88%.

In the above table I have select mutual funds on the basis of CRISIL mutual fund ranking. I had

taken last 5 year data and on that basis find last 5 year return of all mutual funds. In MIP fund all

mutual fund return average is 9.31%. In that HDFC MIP – LIP (G) has given 12.02% return in the

last 5 years which is highest in these 10 mutual funds. HSBC MIP - Regular Plan (G) gives 7.56%

return in the last 5 years which is lowest in these mutual funds.

In MIP fund all mutual funds average SD is 5.02. In that HDFC MIP - LTP (G) SD high in these

mutual funds, so this mutual fund volatility high compare to other mutual fund and also this mutual

fund is more risky compared to other. UTI Monthly Income Scheme (G) SD low on this mutual

fund, so this mutual fund volatility low compare to other mutual fund and also this mutual fund is

less risky comparing to other.

I have found Sharpe Ratio of mutual funds and its average is 0.74. In that Reliance MIP (G) Sharpe

Ratio high compared to other mutual funds, it gives superior risk-adjusted performance so here you

earn more than risk free rate. LIC NOMURA MIP (G) Sharpe Ratio low compare to other mutual

funds, this fund manager also give superior risk-adjusted performance, but compare to other mutual

fund it gives less risk-adjusted performance.

~ 26 ~

3.10 Gilt Long Term Fund

Scheme Name Return SD Beta Sharpe Treynor Alpha

ICICI Pru Gilt Inv Plan - PF (G) 13.09 11 1 0.67 6.93 1.63

Birla Sun Life GSec - LTF (G) 12.59 5.3 0.3 1.15 19.05 4.94

ICICI Pru Long Term Gilt (G) 11.62 9.8 0.9 0.61 6.48 1.27

Kotak Gilt Invt - Regular (G) 10.97 9.1 0.9 0.54 5.74 0.42

DSP-BR Govt. Sec. (G) 10.15 8.4 0.7 0.53 6.07 0.65

UTI Gilt Advantage - LTP (G) 9.98 8.9 1.3 0.47 3.18 0.78

Templeton (I) Govt Sec -CP (G) 9.07 6.2 0.8 0.52 4.01 0.9

HDFC Gilt Fund- LTP (G) 8.06 8.1 0.7 0.23 2.73 -1.53

Average 10.69 8.3 0.8 0.59 6.774 1.13

For finding Sharpe Ratio, Treynor Ratio and Alpha I have taken Risk Free Rate is 8.88%, Market

Return (CNX Nifty) is 17.68%.

In the above table I have select mutual funds on the basis of CRISIL mutual fund ranking. I had

taken last 5 year data and on that basis find last 5 year return of all mutual funds. In gilt long term

fund all mutual fund return average is 10.69%. In that ICICI Pru Gilt Inv Plan - PF (G) has gives

13.09% return in the last 5 years which is highest in these mutual funds. HDFC Gilt Fund- LTP (G)

gives 8.06% return in the last 5 years which is lowest in these mutual funds.

In gilt long term fund all mutual fund average SD is 8.3. In that ICICI Pru Gilt Inv Plan - PF (G) SD

high in these mutual funds, so this mutual fund volatility high compare to other mutual fund and

also this mutual fund is more risky compared to other. Birla Sun Life GSec - LTF (G) SD low on

this mutual fund, so this mutual fund volatility low compare to other mutual fund and also this

mutual fund is less risky comparing to other.

I have found beta of mutual funds and its average is 0.8. Here in that UTI Gilt Advantage - LTP (G)

beta high in these mutual funds. Here UTI Gilt Advantage - LTP (G) beta above 1 so it‟s high volatile

and also compared to other it‟s highly volatile. Birla Sun Life GSec - LTF (G) beta is 0.47 so it‟s less

volatile comparable to the other.

I have found Sharpe Ratio of mutual funds and its average is 0.59. In that Birla Sun Life GSec -

LTF (G) Sharpe Ratio high compared to other mutual funds, it gives superior risk-adjusted

performance so here you earn more than risk free rate. HDFC Gilt Fund- LTP (G) Sharpe Ratio low

compare to other mutual funds, this fund manager also give superior risk-adjusted performance, but

compare to other mutual fund it gives less risk-adjusted performance.

I have found the treynor ratio of mutual funds and its average is 6.774 and also found. Birla Sun Life

GSec - LTF (G) treynor ratio high compared to other mutual funds, it gives superior risk adjusted

performance. HDFC Gilt Fund- LTP (G) treynor ratio low compared to other mutual funds, this

mutual fund also gives superior risk-adjusted performance, but compare to other mutual fund it

gives less risk-adjusted performance.

I have found Alpha of mutual funds and its average is 1.13. In that Birla Sun Life GSec - LTF

(G) Alpha high compared to other mutual funds, it gives risk-adjusted performance, so here you earn

more than risk free rate. HDFC Gilt Fund- LTP (G) Alpha negative so it‟s low compared to other

mutual funds, negative alpha would indicate an underperformance.

~ 27 ~

3.11 Comparison Among Sectors

Large Cap Fund:- I have select mutual funds on the basis of CRISIL mutual fund ranking. I have found all mutual

fund returns, Sharpe ratio, Treyno Ratio and Alpha. Then after I have selected top 3 mutual funds in

this large cap fund on the basis of return, Sharpe ratio, Treynor ratio and Alpha. Top 3 mutual funds

are as follows:

Rank Scheme Name Return Sharpe Treynor Alpha

1 IDFC Equity Fund - Plan A (G) 29.37 1.08 32.3 10.92

2 Quantum Long-Term Equity (G) 26.04 0.97 24.33 7.63

3 ICICI Pru Focused Bluechip Eqty (G) 24.65 0.9 21.92 5.91

This 3 mutual fund returns are high in all mutual funds. This 3 mutual fund Sharpe Ratio high

compared to other mutual funds, it gives superior risk-adjusted performance so here you earn more

than risk free rate. This 3 mutual fund Treynor ratio high compared to other mutual funds. Also this

3 mutual fund Alpha high compared to other mutual funds, it gives risk-adjusted performance

compares to a benchmark index so here you earn more than risk free rate.

Small & Mid Cap Fund:- I have select mutual funds on the basis of CRISIL mutual fund ranking. I have found all mutual

fund returns, Sharpe ratio, Treynor ratio and Alpha. Then after I have selected top 3 mutual funds in

this Small & Mid cap fund on the basis of return, Sharpe ratio and Alpha. Top 3 mutual funds are as

follows:

Rank Scheme Name Return Sharpe Treynor Alpha

1 SBI Emerging Busi (G) 34 0.97 29.54 12.39

2 DSP-BR Micro Cap Fund - RP (G) 32.53 0.93 26.69 10.71

3 ICICI Pru Discovery Fund (G) 31.73 1.04 30.82 11.58

This 3 mutual fund returns are high in all mutual funds. This 3 mutual fund Sharpe Ratio high

compared to other mutual funds, it gives superior risk-adjusted performance so here you earn more

than risk free rate. This 3 mutual fund Treynor ratio high compared to other mutual funds. Also this

3 mutual fund Alpha high compared to other mutual funds, it gives risk-adjusted performance

compares to a benchmark index so here you earn more than risk free rate.

Diversified Fund:- I have select mutual funds on the basis of CRISIL mutual fund ranking. I have found all mutual

fund returns, Sharpe ratio, Treynor ratio and Alpha. Then after I have selected top 3 mutual funds in

this diversified fund on the basis of return, Sharpe ratio and Alpha. Top 3 mutual funds are as

follows:

Rank Scheme Name Return Sharpe Treynor Alpha

1 Reliance Equity Oppor - RP (G) 30.24 1 28.9 10.31

2 Mirae (I) Opportunities-RP (G) 27.61 0.92 22.22 7.75

3 Tata Ethical Fund (G) 27.26 1 27.03 9.16

This 3 mutual fund returns are high in all mutual funds. This 3 mutual fund Sharpe Ratio high

compared to other mutual funds, it gives superior risk-adjusted performance so here you earn more

than risk free rate. This 3 mutual fund Treynor ratio high compared to other mutual funds. Also this

3 mutual fund Alpha high compared to other mutual funds, it gives risk-adjusted performance

compares to a benchmark index so here you earn more than risk free rate.

~ 28 ~

ELSS Fund:- I have select mutual funds on the basis of CRISIL mutual fund ranking. I have found all mutual

fund returns, Sharpe ratio, Treynor ratio and Alpha. Then after I have selected top 3 mutual funds in

this ELSS fund on the basis of return, Sharpe ratio, Treynor ratio and Alpha. Top 3 mutual funds are

as follows:

Rank Scheme Name Return Sharpe Treynor Alpha

1 ICICI Pru Tax Plan (G) 26.97 0.94 23.6 7.69

2 Can Robeco Eqty TaxSaver (G) 24.86 0.85 20.99 5.81

3 HDFC Long Term Advantage (G) 24.32 0.87 21.24 5.76

This 3 mutual fund returns are high in all mutual funds. This 3 mutual fund Sharpe Ratio high

compared to other mutual funds, it gives superior risk-adjusted performance so here you earn more

than risk free rate. This 3 mutual fund Treynor ratio high compared to other mutual funds. Also this

3 mutual fund Alpha high compared to other mutual funds, it gives risk-adjusted performance

compares to a benchmark index so here you earn more than risk free rate.

Index Fund:- I have select mutual funds on the basis of CRISIL mutual fund ranking. I have found all mutual

fund returns, Sharpe ratio, Treynor ratio and Alpha. Then after I have selected top 3 mutual funds in

this index fund on the basis of return, Sharpe ratio, Treynor ratio and Alpha. Top 3 mutual funds are

as follows:

Rank Scheme Name Return Sharpe Treynor Alpha

1 Franklin (I) Index - BSE (G) 18.77 0.63 13.83 0.48

2 GS Nifty BeES 18.57 0.62 13.41 0.17

3 HDFC Index - Sensex Plan 17.76 0.54 11.51 0.2

This 3 mutual fund returns are high in all mutual funds. This 3 mutual fund Sharpe Ratio high

compared to other mutual funds, it gives superior risk-adjusted performance so here you earn more

than risk free rate. This 3 mutual fund Treynor ratio high compared to other mutual funds. Also this

3 mutual fund Alpha high compared to other mutual funds, it gives risk-adjusted performance

compares to a benchmark index so here you earn more than risk free rate.

Balanced Fund:- I have select mutual funds on the basis of CRISIL mutual fund ranking. I have found all mutual

fund returns and Sharpe ratio. Then after I have selected top 3 mutual funds in this balanced fund on

the basis of return and Sharpe ratio. Top 3 mutual funds are as follows:

Rank Scheme Name Return Sharpe

1 HDFC Balanced Fund (G) 23.82 1.09

2 HDFC Prudence Fund (G) 23.69 0.9

3 Reliance RSF - Balanced (G) 21.65 0.85

This 3 mutual fund returns are high in all mutual funds. This 3 mutual fund Sharpe Ratio high

compared to other mutual funds, it gives superior risk-adjusted performance so here you earn more

than risk free rate.

Money Market Fund:- I have select mutual funds on the basis of CRISIL mutual fund ranking. I have found all mutual

funds return and Sharpe ratio. Then after I have selected top 3 mutual funds in this Money Market

fund on the basis of return and Sharpe ratio. Top 3 mutual funds are as follows:

~ 29 ~

Rank Scheme Name Return Sharpe

1 BNP Paribas Overnight Fund -IP (G) 8.05 1.7

2 Birla SL FRF - STP - Reg. (G) 7.99 1.54

3 Templeton (I) TMA- Liquid -SIP (G) 7.92 1.48

This 3 mutual fund returns are high in all mutual funds. This 3 mutual fund Sharpe Ratio high

compared to other mutual funds, it gives superior risk-adjusted performance so here you earn more

than risk free rate.

Debt Fund:- I have select mutual funds on the basis of CRISIL mutual fund ranking. I have found all mutual

fund returns and Sharpe ratio. Then after I have selected top 3 mutual funds in this debt fund on the

basis of return and Sharpe ratio. Top 3 mutual funds are as follows:

Rank Scheme Name Return Sharpe

1 Templeton (I) ST Income -Retail (G) 9.03 2.56

2 Birla SL Short Term Opp-RP (G) 8.95 2.81

3 Birla SL Medium Term - RP (G) 8.76 2.34

This 3 mutual fund returns are high in all mutual funds. This 3 mutual fund Sharpe Ratio high

compared to other mutual funds, it gives superior risk-adjusted performance so here you earn more

than risk free rate.

MIP Fund:- I have select mutual funds on the basis of CRISIL mutual fund ranking. I have found all mutual

funds return and Sharpe ratio. Then after I have selected top 3 mutual funds in this MIP fund on the

basis of return and Sharpe ratio. Top 3 mutual funds are as follows:

Rank Scheme Name Return Sharpe

1 HDFC MIP - LTP (G) 12.02 0.93

2 Reliance MIP (G) 11.11 0.94

3 ICICI Prudential MIP 25 (G) 11 0.82

This 3 mutual fund returns are high in all mutual funds. This 3 mutual fund Sharpe Ratio high

compared to other mutual funds, it gives superior risk-adjusted performance so here you earn more

than risk free rate.

Gilt Long Term Fund:- I have select mutual funds on the basis of CRISIL mutual fund ranking. I have found all mutual

fund returns, Sharpe ratio, Treynor ratio and Alpha. Then after I have selected top 3 mutual funds in

this gilt long term fund on the basis of return, Sharpe ratio, Treynor ratio and Alpha. Top 3 mutual

funds are as follows:

Rank Scheme Name Return Sharpe Treynor Alpha

1 ICICI Pru Gilt Inv Plan - PF (G) 13.09 0.67 6.93 1.63

2 Birla Sun Life GSec - LTF (G) 12.59 1.15 19.05 4.94

3 ICICI Pru Long Term Gilt (G) 11.62 0.61 6.48 1.27

This 3 mutual fund returns are high in all mutual funds. This 3 mutual fund Sharpe Ratio high

compared to other mutual funds, it gives superior risk-adjusted performance so here you earn more

~ 30 ~

than risk free rate. This 3 mutual fund Treynor ratio high compared to other mutual funds. Also this

3 mutual fund Alpha high compared to other mutual funds, it gives risk-adjusted performance

compares to a benchmark index so here you earn more than risk free rate.

~ 31 ~

Chapter:- 4 An Analytical

Study Of Investor Perception

~ 32 ~

4.1 Analysis With Tabulations And Pie Charts

Age:-

Age 21-30 31-40 41-50 More Than 51 Total

No Of Respondents 69 33 70 28 200

% Of Respondents 34 17 35 14 100

Interpretation:-

The above pie chart shows particular Age groups of respondents who invest in mutual funds. The

Group research analyzed that the investment in mutual fund according to the age as below, I found

out that there are 34% Respondents lying between 21-30, 17% Respondents lying between 31-40,

35% Respondent between 41-50, 14% respondents lying more than 51year. As we can see the

maximum investment in a mutual fund is done by the age group of 41-50.

~ 33 ~

Gender:-

Gender Male Female Total

No Of Respondents 152 48 200

% Of Respondents 76 24 100

Interpretation:-

The above pie chart shows the gender wise classification of respondents who invest in mutual funds.

The Gender wise Analysis Interprets that 24% Female invest in mutual funds & remaining 76%

Male invest in mutual funds.

~ 34 ~

Annual Income:-

Annual Income Less Than 3 Lakh 3 to 5 Lakh 5 to 8 Lakh More Than 8 Lakh Total

No Of Respondents 40 69 60 31 200

% Of Respondents 20 34 30 16 100

Interpretation:-

The above pie chart shows the annual income of respondents who invest in mutual funds. According

to my analysis 34% respondents are in 3 to 5 lakh slot. 30% are coming in 5 to 8 lakh slot of annual

income. The other 20% have less than 3 lakh of there annual income and remaining 16% have more

than 8 lakh of the annual income.

So by doing above interpretation I found that 34% of group investing in mutual funds are having

their annual income in between 3 to 5 lakh RS.

~ 35 ~

Annual Investment In Mutual Funds:-

Annual Investment

in mutual funds Less Than 50000 50000 - 100000 100000 - 150000

More Than

150000 Total

No Of Respondents 35 73 62 30 200

% Of Respondents 17 37 31 15 100

Interpretation:-

The above pie chart shows the annual investment of respondents who invest in mutual funds.

According to my analysis 37% of the group do their annual investment of 50000 to 100000 RS in

mutual fund. 31% of the group do their annual investment of 100000- 150000 RS in mutual fund.

The other 17% do their annual investment of less than 50000 RS in mutual fund. And remaining

15% do their annual investment more the 150000RS in mutual Funds.

So by doing this analysis I found that 37% of the group having their annual investment of 50000 -

100000 RS in mutual fund.

~ 36 ~

Mutual Fund As Investment Instrument Given In Ranked:-

Mutual Fund As Investment Instrument Given In Ranked

Rank 1 2 3 4 5 6 7 Total

No Of Respondent 18 99 50 32 1 0 0 200

% Of Respondents 9 49 25 16 1 0 0 100

Interpretation:-

The Above Chart shows the effect of mutual funds as an investment instrument. The number 1

signifies that the most important of a mutual fund as an investment instrument while number 7

signifies the less importance of a mutual fund as an investment instrument. Our research interprets

that 9% respondent consider as mutual fund as an investment instrument is more preferable. 49%

respondents had given 2nd

preference, 25% respondent had given 3rd

preference to mutual fund as an

investment instrument, 16% respondent had given 4th

preference to mutual fund as an investment

instrument, 1% respondent had given 5th

preference to investment.

So by this analysis I found that everyone interested to invest in mutual fund.

~ 37 ~

Equity As Investment Instruent Given In Ranked:-

Equity As Investment Instrument Given In Ranked

Rank 1 2 3 4 5 6 7 Total

No Of Respondents 12 90 36 12 50 0 0 200

% Of Respondents 6 45 18 6 25 0 0 100

Interpretation:-

The Above Chart shows the effect of equity as an investment instrument. The number 1 signifies

that the most important of an equity as an investment instrument while number 7 signifies the less

importance of an equity as an investment instrument. Our research interprets that 6% respondent

consider as equity as an investment instrument is more preferable. 45% respondents had given 2nd

preference, 18% respondent had given 3rd

preference to equity as an investment instrument, 6%

respondent had given 4th

preference to equity as an investment instrument, 25% respondent had

given 5th

preference to investment.

So by this analysis I found that everyone interested to invest in equity as an investment instrument.

~ 38 ~

FD Bank / Corporate As Investment Instrument Given In Ranked:-

FD Bank / Corporate As Investment Instrument Given In Ranked

Rank 1 2 3 4 5 6 7 Total

No Of Respondents 0 59 129 0 0 11 1 200

% Of Respondents 0 29 65 0 0 5 1 100

Interpretation:-

The Above Chart shows the effect of FD Bank & Corporate as an investment instrument. The

number 1 signifies that the most important of the FD Bank & Corporate as an investment instrument

while number 7 signifies the less importance of the FD Bank & Corporate as an investment

instrument. Our research interprets that 0% respondent consider the FD Bank & Corporate as an

investment instrument is more preferable. 29% respondents had given 2nd

preference, 65%

respondent had given 3rd

preference the FD Bank & Corporate as an investment instrument, 5%

respondent had given 6th

preference to the FD Bank & Corporate as an investment instrument, 1%

respondent had given 7th

preference to investment.

~ 39 ~

Real Estate As Investment Instrument Given In Ranked:-

Real Estate As Investment Instrument Given In Ranked

Rank 1 2 3 4 5 6 7 Total

No Of Respondents 0 32 14 51 66 37 0 200

% Of Respondents 0 16 7 25 33 19 0 100

Interpretation:-

The Above Chart shows the effect of real estate as an investment instrument. The number 1 signifies

that the most important of the real estate as an investment instrument while number 7 signifies the

less importance of the real estate as an investment instrument. Our research interprets that 0%

respondent consider the real estate as an investment instrument is more preferable. 16% respondents

had given 2nd

preference, 7% respondent had given 3rd

preference the real estate as an investment

instrument, 25% respondent had given 4th

preference to the real estate as an investment instrument,

33% respondent had given 5th

preference to invest 19% respondent had given 6th

preference.

~ 40 ~

Bond / Debenture As Investment Instrument Given In Ranked:-

Bond / Debenture As Investment Instrument Given In Ranked

Rank 1 2 3 4 5 6 7 Total

No Of Respondents 0 70 129 0 0 0 1 200

% Of Respondents 0 35 64 0 0 0 1 100

Interpretation:-

The Above Chart shows the effect of Bond / Debenture as an investment instrument. The number 1

signifies that the most important of the Bond / Debenture as an investment instrument while number

7 signifies the less importance of the Bond / Debenture as an investment instrument. Our research

interprets that 0% respondent consider the Bond / Debenture as an investment instrument is more

preferable. 35% respondents had given 2nd

preference, 64% respondent had given 3rd

preference the

Bond / Debenture as an investment instrument, 1% respondent had given 7th

preference to the Bond

/ Debenture as an investment instrument.

~ 41 ~

Post Office Deposit As Invetment Instrument Given In Ranked:-

Post Office Deposit As Investment Instrument Given In Ranked

Rank 1 2 3 4 5 6 7 Total

No Of Respondents 0 39 128 10 22 0 1 200

% Of Respondents 0 19 64 5 11 0 1 100

Interpretation:-

The Above Chart shows the effect of Post Office Deposit as an investment instrument. The number

1 signifies that the most important of the Post Office Deposit as an investment instrument while

number 7 signifies the less importance of the Post Office Deposit as an investment instrument. Our

research interprets that 0% respondent consider the Post Office Deposit as an investment instrument

is more preferable. 19% respondents had given 2nd

preference, 64% respondent had given 3rd

preference the Post Office Deposit as an investment instrument, 5% respondent had given 4th

preference to the Post Office Deposit as an investment instrument, 11% respondent had given 5th

preference to invest 1% respondent had given 7th

preference.

~ 42 ~

Gold As Investment Instrument Given In Ranked:-

Gold As Investment Instrument Given In Ranked

Rank 1 2 3 4 5 6 7 Total

No Of Respondents 0 0 19 111 32 14 24 200

% Of Respondents 0 0 10 55 16 7 12 100

Interpretation:-

The Above Chart shows the effect of gold as an investment instrument. The number 1 signifies that

the most important of the gold as an investment instrument while number 7 signifies the less

importance of the gold as an investment instrument. Our research interprets that 0% respondent

consider the Post Office Deposit as an investment instrument is more preferable. 0% respondents

had given 2nd

preference, 10% respondent had given 3rd

preference the gold as an investment

instrument, 55% respondent had given 4th

preference to the gold as an investment instrument, 16%

respondent had given 5th

preference to invest 7% respondent had given 6th

preference. 12%

respondent had given 7th

preference.

~ 43 ~

Average Invetment Period In Mutual Fund:-

Average Investment

Period In Mutual Fund

Less Than 12

Months

12 Months To 2

Years 2 To 5 Years

More Than 5

Years Total

No Of Respondents 0 0 23 177 200

% Of Respondents 0 0 11 89 100

Interpretation:-

The above pie chart shows the average investment period in the mutual fund of respondents who

invest in it. According to my analysis 89% respondents are investing for the time period of more

than 5 years. 11% respondents are investing for the time period of 2 to 5 years.

So by doing above interpretation I found that 89% of group investing in mutual funds for the time

period of more than 5 years.

~ 44 ~

Television As Primary Sources Of Your Knowledge About Mutual Funds

As An Investment Option Given In Ranked:-

Television As primary sources of your knowledge about mutual funds as

an investment option Given In Ranked

Rank 1 2 3 4 5 Total

No Of Respondent 11 11 122 12 44 200

% Of Respondents 6 5 61 6 22 100

Interpretation:-

The Above Chart shows the effect of television as primary sources of your knowledge about mutual

funds as an investment option. The number 1 signifies that the most important of the television as

primary sources of your knowledge about mutual funds as an investment option while number 5

signifies the less television as primary sources of your knowledge about mutual funds as an

investment option. Our research interprets that 6% respondent consider the television as primary

sources of your knowledge about mutual funds as an investment option is most preferable. 5%

respondents had given 2nd

preference, 61% respondent had given 3rd

preference the television as

primary sources of your knowledge about mutual funds as an investment option, 6% respondent had

given 4th

preference to the television as primary sources of your knowledge about mutual funds as

an investment option. 22% respondents had given less preference to the television as primary

sources of your knowledge about mutual funds as an investment option.

~ 45 ~

Internet As primary sources of your knowledge about mutual funds as an

investment option Given In Ranked:-

Internet As primary sources of your knowledge about mutual funds as an

investment option Given In Ranked

Rank 1 2 3 4 5 Total

No Of Respondent 47 110 32 11 0 200

% Of Respondents 23 55 16 6 0 100

Interpretation:-

The Above Chart shows the effect of internet as primary sources of your knowledge about mutual

funds as an investment option. The number 1 signifies that the most important on the internet as

primary sources of your knowledge about mutual funds as an investment option while number 5

signifies the less important internet as primary sources of your knowledge about mutual funds as an

investment option. Our research interprets that 23% respondent consider the internet as primary

sources of your knowledge about mutual funds as an investment option is most preferable. 55%

respondents had given 2nd

preference, 16% respondent had given 3rd

preference the internet as

primary sources of your knowledge about mutual funds as an investment option, 6% respondent had

given 4th

preference to the internet as primary sources of your knowledge about mutual funds as an

investment option. 0% respondents had given less preference to the internet as primary sources of

your knowledge about mutual funds as an investment option.

~ 46 ~

News Paper As primary sources of your knowledge about mutual funds as

an investment option Given In Ranked:-

News Paper As primary sources of your knowledge about mutual funds

as an investment option Given In Ranked

Rank 1 2 3 4 5 Total

No Of Respondent 0 23 91 67 19 200

% Of Respondents 0 11 46 33 10 100

Interpretation:-

The Above Chart shows the effect of newspaper as primary sources of your knowledge about

mutual funds as an investment option. The number 1 signifies that the most important in the

newspaper as primary sources of your knowledge about mutual funds as an investment option while

number 5 signifies the less important newspaper as primary sources of your knowledge about

mutual funds as an investment option. Our research interprets that 0% respondent consider the

newspaper as primary sources of your knowledge about mutual funds as an investment option is

most preferable. 11% respondents had given 2nd

preference, 46% respondent had given 3rd

preference the newspaper as primary sources of your knowledge about mutual funds as an

investment option, 33% respondent had given 4th

preference to the newspaper as primary sources of

your knowledge about mutual funds as an investment option. 10% respondents had given less

preference to the newspaper as primary sources of your knowledge about mutual funds as an

investment option.

~ 47 ~

Scholarly Journals / Articles As primary sources of your knowledge about

mutual funds as an investment option Given In Ranked:-

Scholarly Journals / Articles As primary sources of your knowledge about

mutual funds as an investment option Given In Ranked

Rank 1 2 3 4 5 Total

No Of Respondent 92 55 43 10 0 200

% Of Respondents 46 27 22 5 0 100

Interpretation:-

The Above Chart shows the effect of scholarly journals / articles as primary sources of your

knowledge about mutual funds as an investment option. The number 1 signifies that the most

important in the scholarly journals / articles as primary sources of your knowledge about mutual

funds as an investment option while number 5 signifies the less important scholarly journals /

articles as primary sources of your knowledge about mutual funds as an investment option. Our

research interprets that 46% respondent consider the scholarly journals / articles as primary sources

of your knowledge about mutual funds as an investment option is most preferable. 27% respondents

had given 2nd

preference, 22% respondent had given 3rd

preference the scholarly journals / articles

as primary sources of your knowledge about mutual funds as an investment option, 5% respondent

had given 4th

preference to the scholarly journals / articles as primary sources of your knowledge

about mutual funds as an investment option. 0% respondents had given less preference to the

scholarly journals / articles as primary sources of your knowledge about mutual funds as an

investment option.

~ 48 ~

Friends / Relative As primary sources of your knowledge about mutual

funds as an investment option Given In Ranked:-

Friends / Relative As primary sources of your knowledge about mutual funds

as an investment option Given In Ranked

Rank 1 2 3 4 5 Total

No Of Respondent 0 13 72 58 57 200

% Of Respondents 0 7 36 29 28 100

Interpretation:-

The Above Chart shows the effect of friends / relative as primary sources of your knowledge about

mutual funds as an investment option. The number 1 signifies that the most important in the friends

/ relative as primary sources of your knowledge about mutual funds as an investment option while

number 5 signifies the less important friends / relative as primary sources of your knowledge about

mutual funds as an investment option. Our research interprets that 0% respondent consider the

friends / relative as primary sources of your knowledge about mutual funds as an investment option

is most preferable. 7% respondents had given 2nd

preference, 36% respondent had given 3rd

preference the friends / relative as primary sources of your knowledge about mutual funds as an

investment option, 29% respondent had given 4th

preference to the friends / relative as primary

sources of your knowledge about mutual funds as an investment option. 28% respondents had given

less preference to the friends / relative as primary sources of your knowledge about mutual funds as

an investment option.

~ 49 ~

Risk Willingness:-

Low Moderate High Total

No Of Respondent 12 69 119 200

% Of Respondents 6 34 60 100

Interpretation:-

The above pie chart shows a particular risk willingness of respondents who invest in mutual funds.

60% respondents are risk takers in investing in the mutual fund. The other 34% respondents are

moderate risk takers who invest in mutual fund. And remaining 6% respondents are low risk takers

who invest in mutual fund.

So by doing the above analysis I found that 60% of respondents are ready to take risks in investing

in mutual fund.

~ 50 ~

Investor Preference In Mutual Fund

Investor

Preference In

Mutual Funds

Large

Cap

Fund

Small

&

Mid

Cap

Fund

Diver

sified

Fund

Balan

ced

Fund

ELSS

Fund

Index

Fund

Money

Market

Fund

Debt

Fund

MIP

Fund

Gilt

Long

Term

Fund

Total

No Of

Respondent 176 125 143 79 85 98 84 92 58 76 1016

% Of

Respondent 17 12 14 8 8 10 8 9 6 8 100

Interpretation:-

The above pie chart shows particular investor preference in mutual funds respondents who invest in

it. According to my analysis 17% respondents invest in large cap fund. 12 % respondents invest in

small & mid cap fund. 14% respondents invest in diversified fund. 8% respondents invest in

balanced fund, ELSS fund, money market fund and gilt long term fund. 10% respondents invest in

index fund. 9% respondents invest in debt fund. 6% respondents invest in MIP fund.

So I found that 17% respondent investing in large cap fund and 6% respondent investing in MIP

fund.

~ 51 ~

Expected Return From Investments:-

Expected Return

From Investments Up To 12% 13% - 16% 17% - 20% More Than 21% Total

No Of Respondent 0 38 109 53 200

% Of Respondents 0 19 54 27 100

Interpretation:-

The above pie chart shows expected return from investments of respondents who invest in mutual

funds. We found out that there are 54% Respondents lying between 17%-20%, 27% Respondents

are expected more than 21% return from investment. 19% respondents are lying between 13% to

16%.

So I found that 54% are expecting 17%-20% return from investment.

~ 52 ~

Mutual Fund Prefer By Investore:-

Mutual Fund Prefer By

Investor

Open Ended

Schemes

Closed Ended

Schemes Both Total

No Of Respondent 36 0 164 200

% Of Respondents 18 0 82 100

Interpretation:-

The above pie chart shows mutual fund prefer by the investors of respondents who invest in mutual

funds. We found out that there are 82% Respondents who prefer both open & close ended schemes.

18% Respondents prefer open ended scheme.

So I found that 82% respondents who prefer both open & close ended schemes.

~ 53 ~

Influenced by the name of the company:-

Influenced by the name

of the company Yes No Total

No Of Respondent 16 184 200

% Of Respondents 8 92 100

Interpretation:-

The above pie chart shows influenced by the name of the company who invest in mutual funds. We

found out that there are 92% Respondents who are not influenced by the name of the company and

8% Respondents are influenced by the name of the company.

~ 54 ~

Influenced by the returns of a fund:-

Influenced by the returns

of a fund Yes No Total

No Of Respondent 137 63 200

% Of Respondents 68 32 100

Interpretation:-

The above pie chart shows influenced by the return who invest in mutual funds. We found out that

there are 68% Respondents who are influenced by the return and 32% Respondents are not

influenced by the return of the fund.

~ 55 ~

Your Self As A Mutual Fund Investor:-

Your Self As A

Mutual Fund

Investor

Totally

Ignorant

Partial

Knowledge Of

Mutual Fund

Aware Only Of Any Special

Scheme In Which You

Invested Fully Aware Total

No Of Respondent 42 47 41 70 200

% Of Respondents 21 23 21 35 100

Interpretation:-

The above pie chart shows yourself as a mutual fund investor who invest in mutual funds. We found

out that there are 35% respondents are fully aware about the mutual fund. 23% are partially aware

about the mutual funds and 21% respondents are aware only of any special scheme in which you

invested and totally ignorant about mutual funds.

So I found that 35% respondents are fully aware about the mutual fund.

~ 56 ~

Major Reason For Using Financial Advisors:-

Major Reason For

Using Financial

Advisors

Want Help

With Asset

Allocation

Don't Have Time

To Make My

Own Investment

Decision

To Explain

Various

Investment

Options

Want To Make Sure

I Am Investing

Enough To Meet My

Financial Goals Total

No Of Respondents 37 30 55 78 200

% Of Respondents 18 15 28 39 100

Interpretation:-

The above pie chart shows major reason for using financial advisor who invest in mutual funds. We

found out that there are 39% respondents are want to make sure I am investing enough to meet my

financial goals. 28% are to explain various investment options. 18% respondents want help with

asset allocation and 15% respondents haven‟t had time to make own investment decision.

So I found that 39% respondents are wanting to make sure I am investing enough to meet my

financial goals.

~ 57 ~

From Where Investor Purchase Mutual Funds:-

From Where Investor

Purchase Mutual Funds

Direct From The

AMC Brokers Only

Brokers /

Subbrokers Total

No Of Respondents 71 59 70 200

% Of Respondents 35 30 35 100

Interpretation:-

The above pie chart shows from where investor purchase mutual fund who invest in mutual funds.

We found out that there are 35% respondents are purchasing mutual fund from Brokers / Subbrokers

and another 35% respondents purchase mutual fund directly from the AMC. 30% respondents are

purchasing mutual fund from only brokers.

So I found that 35% respondents are purchasing mutual fund from Brokers / Subbrokers & directly

from the AMC.

~ 58 ~

Features Of The Mutual Fund That Attract You Most

Features Of The

Mutual Fund That

Attract You Most Diversification

Professional

Management

Reduction In Risk

And Transaction

Costs

Helps In Achieving

Long Term Goals Total

No Of Respondents 27 45 85 43 200

% Of Respondents 13 22 43 22 100

Interpretation:-

The above pie chart shows the features of the mutual fund that attract most of investor who invest in

mutual funds. We found out that there are 43% respondents are attracted from mutual fund because

here risk reduction & transaction cost. 22% respondents are attracted from mutual fund because it

helps in achieving long term goals and another 22% respondents are attracted from mutual fund

because it gives professional management. 13% respondents are attracted from mutual fund because

it provides diversification.

So I found that 43% respondents are attracted from mutual fund because here risk reduction &

transaction cost.

~ 59 ~

Most Suitable Stage To Invest In Mutual Funds:-

Most Suitable Stage

To Invest In Mutual

Funds

Young

Unmarried

Stage

Young Married

With Children

Stage

Married With

Older Children

Stage

Pre

Retirement

Stage Total

No Of Respondent 97 73 30 0 200

% Of Respondents 48 37 15 0 100

Interpretation:-

The above pie chart shows most suitable stage to invest in mutual funds who invest in mutual funds.

We found out that there are 48% respondents are thinking that young unmarried stage suitable for

investing in mutual fund. 37% respondents are thinking that young married with the child‟s stage

suitable for investing in mutual fund. 15% respondents are thinking that married with the older

child‟s stage suitable for investing in mutual fund while no one respondent think that pre retirement

stage suitable for investing in mutual fund.

So I found that 48% respondents are thinking that young unmarried stage suitable for investing in

mutual fund.

~ 60 ~

4.2 Chi-Square Calculations

Age V/S Risk Willingness

Risk Willingness

Low Moderate High Total

Age

21-30 0 16 53 69

31-40 0 0 33 33

41-50 12 36 22 70

More Than 51 0 17 11 28

Total 12 69 119 200

F0 Fe (F0 - Fe) (F0 - Fe)2

((F0 - Fe)2)/Fe

0 4.14 -4.14 17.1396 4.140

16 23.805 -7.805 60.918025 2.559

53 41.055 11.945 142.683025 3.475

0 1.98 -1.98 3.9204 1.980

0 11.385 -11.385 129.618225 11.385

33 19.635 13.365 178.623225 9.097

12 4.2 7.8 60.84 14.486

36 24.15 11.85 140.4225 5.815

22 41.65 -19.65 386.1225 9.271

0 1.68 -1.68 2.8224 1.680

17 9.66 7.34 53.8756 5.577

11 16.66 -5.66 32.0356 1.923

Chi-Square 71.388

H0: The age of the investors and risk willingness are independent of each other.

H1: The age of the investors and risk willingness are dependent of each other.

χ2 = ∑ (F0 – Fe)

2

Fe = 71.388

D.f. = (r-1) (c-1)

= 3 x 2 = 6

Table value of χ 2

on 6 D.f. And at 5% level of significance = 12.592

χ2

cal ˃ χ2tab

Here we reject null hypothesis because χ2

cal ˃ χ2

tab so here we accept the alternative hypothesis. Yes

age of the investors and risk willingness are dependent of each other.

~ 61 ~

Age V/S Expected Return From Investments

Expected Return From Investments

Up to 12% 13%-16% 17%-20% More Than 21% Total

Age

21-30 0 0 58 11 69

31-40 0 0 0 33 33

41-50 0 38 24 8 70

More Than 51 0 0 27 1 28

Total 0 38 109 53 200

F0 Fe (F0 - Fe) (F0 - Fe)2

((F0 - Fe)2)/Fe

0 0 0 0 0

0 13.11 -13.11 171.87 13.11

58 37.605 20.395 415.96 11.06

11 18.285 -7.285 53.07 2.90

0 0 0 0 0

0 6.27 -6.27 39.31 6.27

0 17.985 -17.985 323.46 17.99

33 8.745 24.255 588.31 67.27

0 0 0 0 0

38 13.3 24.7 610.09 45.87

24 38.15 -14.15 200.22 5.25

8 18.55 -10.55 111.30 6.00013

0 0 0 0 0

0 5.32 -5.32 28.30 5.32

27 15.26 11.74 137.83 9.03

1 7.42 -6.42 41.22 5.55

Chi-Square 195.629

H0: The age of the investors and expected returns from investments are independent of each other.

H1: The age of the investors and expected returns from investments are dependent of each other.

χ2 = ∑ (F0 – Fe)

2

Fe = 195.629

D.f. = (r-1) (c-1)

= 3 x 3 = 9

Table value of χ 2

on 9 D.f. And at 5% level of significance = 16.919

χ2

cal ˃ χ2tab

Here we reject null hypothesis because χ2

cal ˃ χ2

tab so here we accept the alternative hypothesis. Yes

age of the investors and expected returns from investments are dependent of each other.

~ 62 ~

Age V/S Knowledge Related TO Mutual Funds

Knowledge Related To Mutual Funds

Totally Ignorant

Partial

Knowledge Of

Mutual Fund

Aware Only Of Any

Special Scheme In

Which You Invested Fully Aware Total

Ag

e

21-30 0 11 18 40 69

31-40 0 10 23 0 33

41-50 26 26 0 18 70

More Than 51 16 0 0 12 28

Total 42 47 41 70 200

F0 Fe (F0 - Fe) (F0 - Fe)2

((F0 - Fe)2)/Fe

0 14.49 -14.49 209.96 14.49

11 16.22 -5.22 27.20 1.68

18 14.15 3.86 14.86 1.05

41 24.15 16.85 283.92 11.76

0 6.93 -6.93 48.02 6.93

10 7.76 2.245 5.04 0.65

23 6.77 16.24 263.58 38.96

0 11.55 -11.55 133.40 11.55

26 14.7 11.3 127.69 8.69

26 16.45 9.55 91.20 5.54

0 14.35 -14.35 205.92 14.35

18 24.5 -6.5 42.25 1.72

16 5.88 10.12 102.41 17.42

0 6.58 -6.58 43.30 6.58

0 5.74 -5.74 32.95 5.74

12 9.8 2.2 4.84 0.49

Chi-Square 147.602

H0: The age of the investors and knowledge related to mutual funds are independent of each other.

H1: The age of the investors and knowledge related to mutual funds are dependent of each other.

χ2 = ∑ (F0 – Fe)

2

Fe = 147.602 D.f. = (r-1) (c-1)

= 3 x 3 = 9

Table value of χ 2

on 9 D.f. And at 5% level of significance = 16.919

χ2

cal ˃ χ2tab

Here we reject null hypothesis because χ2

cal ˃ χ2

tab so here we accept the alternative hypothesis. Yes

age of the investors and knowledge related to mutual funds are dependent of each other.

~ 63 ~

Age V/S Features Of The Mutual Funds That Attract Most Of The

Investors

Features Of The Mutual Funds That Attract Most Of The Investors

Diversification

Professional

Management

Reduction in risk

and transaction

costs

Helps in

achieving long

term goals Total

Ag

e

21-30 7 28 28 6 69

31-40 9 0 24 0 33

41-50 8 12 14 36 70

More Than 51 3 5 19 1 28

Total 27 45 85 43 200

F0 Fe (F0 - Fe) (F0 - Fe)2

((F0 - Fe)2)/Fe

7 9.32 -2.32 5.36 0.58

28 15.53 12.48 155.63 10.02

28 29.33 -1.33 1.76 0.06

6 14.84 -8.84 78.06 5.26

9 4.46 4.55 20.66 4.64

0 7.43 -7.43 55.13 7.43

24 14.03 9.98 99.50 7.09

0 7.10 -7.10 50.34 7.10

8 9.45 -1.45 2.10 0.22

12 15.75 -3.75 14.06 0.89

14 29.75 -15.75 248.06 8.34

36 15.05 20.95 438.90 29.16

3 3.78 -0.78 0.61 0.16

5 6.3 -1.30 1.69 0.27

19 11.9 7.10 50.41 4.24

1 6.02 -5.02 25.20 4.19

Chi-Square 89.64

H0: The age of the investors and features of the mutual funds that attract most of the investors are

independent of each other.

H1: The age of the investors and features of the mutual funds that attract most of the investors are

dependent of each other.

χ2 = ∑ (F0 – Fe)

2

Fe = 89.64 D.f. = (r-1) (c-1)

= 3 x 3 = 9

Table value of χ 2

on 9 D.f. And at 5% level of significance = 16.919

χ2

cal ˃ χ2tab

Here we reject null hypothesis because χ2

cal ˃ χ2

tab so here we accept the alternative hypothesis. Yes

age of the investors and features of the mutual funds that attract most of the investors are dependent

of each other.

~ 64 ~

Income V/S Annual Investment In A Mutual Funds

Annual Investment In A Mutual Funds

Less Than 50000 50000 - 100000 100000 - 150000 More Than 150000 Total

Inco

me

Less Than 3 Lakh 15 24 1 0 40

3 - 5 Lakh 17 22 24 6 69

5 - 8 Lakh 3 16 27 14 60

More Than 8 Lakh 0 11 10 10 31

Total 35 73 62 30 200

F0 Fe (F0 - Fe) (F0 - Fe)2

((F0 - Fe)2)/Fe

15 7 8 64 9.14

24 14.6 9.4 88.36 6.05

1 12 -11.4 129.96 10.48

0 6 -6 36 6.00

17 12.08 4.925 24.26 2.01

22 25.2 -3.185 10.14 0.40

24 21 2.61 6.81 0.32

6 10.35 -4.35 18.92 1.83

3 10.5 -7.5 56.25 5.36

16 21.9 -5.9 34.81 1.59

27 19 8.4 70.56 3.79

14 9 5 25 2.78

0 5.43 -5.425 29.43 5.43

11 11.3 -0.315 0.10 0.01

10 10 0.39 0.15 0.02

10 4.65 5.35 28.62 6.16

Chi-Square 61.36

H0: Income of the individual investors and annual investment in a mutual funds are independent of

each other.

H1: Income of the individual investors and annual investment in a mutual funds are dependent of

each other.

χ2 = ∑ (F0 – Fe)

2

Fe = 61.36 D.f. = (r-1) (c-1)

= 3 x 3 = 9

Table value of χ 2

on 9 D.f. And at 5% level of significance = 16.919

χ2

cal ˃ χ2tab

Here we reject null hypothesis because χ2

cal ˃ χ2

tab so here we accept the alternative hypothesis. Yes

income of the individual investors and annual investment in a mutual funds are dependent of each

other.

~ 65 ~

Gender V/S Risk Willingnss

Risk Willingness

Low Moderate High Total

Gen

der

Male 12 57 83 152

Female 0 12 36 48

Total 12 69 119 200

F0 Fe (F0 - Fe) (F0 - Fe)2

((F0 - Fe)2)/Fe

12 9.12 2.88 8.29 0.91

57 52.44 4.56 20.79 0.40

83 90.44 -7.44 55.35 0.61

0 2.88 -2.88 8.29 2.88

12 16.56 -4.56 20.79 1.26

36 28.56 7.44 55.35 1.94

Chi-Square 7.99

H0: Gender of the investors and risk willingness are independent of each other.

H1: Gender of the investors and risk willingness are dependent of each other.

χ2 = ∑ (F0 – Fe)

2

Fe = 7.99

D.f. = (r-1) (c-1)

= 1 x 2 = 2

Table value of χ 2

on 2 D.f. And at 5% level of significance = 5.991

χ2

cal > χ2tab

Here we reject null hypothesis because χ2

cal ˃ χ2

tab so here we accept the alternative hypothesis. Yes

gender of the investors and risk willingness are dependent of each other.

~ 66 ~

Chapter:- 5 Findings

~ 67 ~

The age of the investors and risk willingness are dependent of each other.

The age of the investors and expected returns from investments are dependent of each other.

The age of the investors and knowledge related to mutual funds are dependent of each other.

The age of the investors and features of the mutual funds that attract most of the investors are

dependent of each other.

The income of the individual investors and annual investment in a mutual funds are dependent of

each other.

Gender of the investors and risk willingness are dependent of each other.

The majority of the investor of the mutual fund is lying between 41-50 age group.

There is a more male investor in mutual funds.

About 34% investor income lying between 3 to 5 lakh per annum.

Most of the investors have invested 50000-100000 in mutual fund annually.

Majority investors average period of investment in a mutual fund is more than 5 years.

Majority investor getting knowledge from the internet and scholarly journals / articles.

Majority investor wanted to take risks at the time of investment in mutual fund.

Majority investor prefers to invest their savings in the large cap fund, diversified fund, index

fund and debt fund.

54%, investors expected 17% - 20% return from mutual funds.

Majority investors invest their savings in open ended and close ended schemes.

92% investor not influenced by the name of the company at the time of investment in mutual

fund.

68% investor influenced by the return of a fund at the time of investment in mutual fund.

35% investor fully aware of the mutual fund.

39%, investors using a financial advisor because they want to make sure I am investing enough

to meet my financial goals.

Reduction in risk and transaction cost feature has attracted most of the investors.

~ 68 ~

Majority investor thinking that young unmarried stage is the most suitable stage to invest in

mutual fund.

~ 69 ~

Chapter:- 6 Recommendations

~ 70 ~

On the basis of observation I have suggested one mutual fund in every sector.

Large Cap

IDFC Equity Fund – Plan A (G)

Small & Mid Cap

SBI Emerging Busi (G)

Diversified

Reliance Equity Oppor - RP (G)

ELSS

ICICI Pru Tax Plan (G)

Index

Franklin (I) Index – BSE (G)

Balanced

HDFC Balanced Fund (G)

Money Market

BNP Paribas Overnight Fund -IP (G)

Debt

Templeton (I) ST Income -Retail (G)

MIP

HDFC MIP - LTP (G)

Gilt Long Term

ICICI Pru Gilt Inv Plan - PF (G)

On the basis of observation of all mutual fund sectors following 3 mutual fund sectors are beneficial for

investors.

1. Small & Mid Cap Fund

2. Diversified Fund

3. Large Cap Fund

~ 71 ~

Chapter:- 7 Conclusion

~ 72 ~

An average return of mutual funds considered is 17.38%, while investors expected 17%-20% return

from mutual funds. It means as per expectation investor get a return from the mutual fund.

Most of the investors preferred large cap fund while best returns have been provided by small &

mid cap fund, diversified fund and ELSS fund. So investor start investment in small & mid cap

fund, diversified fund and ELSS fund rather than large cap fund.

The Sharpe ratio of small & mid cap funds is higher than large cap funds. Small & mid cap fund

provided superior risk adjusted return compare to large cap fund.

The Sharpe ratio of small & mid cap fund is higher than diversified funds. Small & mid cap fund

provided superior risk adjusted return compared to a diversified fund.

The Sharpe ratio of small & mid cap fund is higher than an ELSS fund. Small & mid cap fund

provided superior risk adjusted return compare to ELSS fund.

The Sharpe ratio of balance fund is higher than large cap funds. The Balance fund provided

superior risk adjusted return compare to large cap fund.

The Sharpe ratio of balance fund is higher than large cap funds. The Balance fund provided

superior risk adjusted return compare to large cap fund.

The Sharpe ratio of balance fund is higher than ELSS funds. The Balance fund provided superior

risk adjusted return compare to ELSS fund.

The Treynor ratio of small & mid cap funds is higher than large cap funds. Small & mid cap fund

provided better risk adjusted return compare to large cap fund.

The Treynor ratio of small & mid cap fund is higher than diversified funds. Small & mid cap

fund provided better risk adjusted return compared to a diversified fund.

The Treynor ratio of small & mid cap fund is higher than an ELSS fund. Small & mid cap fund

provided better risk adjusted return compare to ELSS fund.

The Alpha of small & mid cap funds is higher than large cap funds. Small & mid cap fund

provided better risk adjusted return compare to large cap fund.

The Alpha of small & mid cap fund is higher than diversified funds. Small & mid cap fund

provided better risk adjusted return compared to a diversified fund.

The Alpha of small & mid cap fund is higher than an ELSS fund. Small & mid cap fund provided

better risk adjusted return compare to ELSS fund.

Most of the investors who lying 21-30 year age group they are willing to take high risk while

most of the investors who lying more than 51 year age group they are not willing to take higher risk.

So it proves that the young age investor willing to take high risk compares to old age investor.

~ 73 ~

Only 35% investors fully aware of the mutual fund while 65% investors not much aware of

mutual fund. So there is a need to educate investors about the advantages of mutual fund schemes.

The AMFI with the help of SEBI should arrange more and more awareness programs to

promote proper understanding of the concept and working of mutual funds.

Most of the investors prefer investing in mutual funds for five and more years. The data also

suggest a reasonable performance of mutual funds for last five years, in this way the quantitative

data support the behaviour of investors.

~ 74 ~

Chapter:- 8 Bibliography

Web site:- www.amfiindia.com

www.investopidia.com

www.bseindia.com

www.nseindia.com

www.moneycontrol.com

www.crisil.com

www.crisilratings.com

www.morningstar.in

www.yahoofinance.com

~ 75 ~

Chapter:- 9 Annexure

~ 76 ~

Questionnaire

I am doing MBA at Department of Animation School of Science, Gujarat University

and this is to acknowledge that the following survey is purely for academic purpose.

My project topic is about knowing the Investor Perception And Actual

Performance Of Mutual Fund. The identity of the respondent will be kept

confidential.

Name:- ___________________________ Occupation:-__________________

Phone:-___________________________

1) Age

21-30 31-40 41-50 More Than 50

2) Gender

Male Female

3) What is your annual income?

Less Than 2 Lakh 2-3 Lakh

3-4 Lakh More Than 4 Lakh

4) What is your annual investment in mutual fund?

Less Than 50000 50000 – 100000

100000 – 150000 More Than 150000

5) Please rank the following investment instruments according to your preference.

Mutual Fund Bond / Debenture

Equity Post Office Deposit

FD Bank / Corporate Gold

Real estate

6) What is your average investment period In Mutual Fund?

Less Than 12 Months 12 Months To 2 Years

2 To 5 Years More Than 5 Years

~ 77 ~

7) Which are the primary sources of your knowledge about mutual funds as an

investment option? Corresponding to your choices, how would you rate their

influence on your final mutual fund purchasing decision. Please rank them on a scale

of 1-5 with 1 representing Most influence and 5 representing less influence.

Rank This Source: Television

1 2 3 4 5

Most Influential Less Influential

Rank This Source: Internet

1 2 3 4 5

Most Influential Less Influential

Rank This Source: NEWS Paper

1 2 3 4 5

Most Influential Less Influential

Rank This Source: Scholarly Journals / Articles

1 2 3 4 5

Most Influential Less Influential

Rank This Source: Friends / Relative

1 2 3 4 5

Most Influential Less Influential

8) How much risk are you willing to take?

Low Moderate High

9) What is your preference in mutual funds?

Large Cap Fund Balanced Fund

Small & Mid Cap Fund Money Market Fund

Diversified Fund Debt Fund

ELSS Fund MIP Fund

Index Fund Gilt Long Term Fund

10) How much return do you expect from your investment?

Up To 12% 13% - 16%

17% - 20% More Than 21%

11) Which type of mutual fund do you prefer?

Open Ended Schemes Closed Ended Schemes

12) Do you get influenced by the name of company promoting mutual funds?

Yes No

~ 78 ~

13) Do you get influenced by the returns given by a fund?

Yes No

14) Where do you find yourself as a mutual fund investor?

Totally Ignorant

Partial Knowledge Of Mutual Funds

Aware Only Of Any Specific Scheme In Which You Invested

Fully Aware

15) What is the major reason for using financial advisors?

Want help with asset allocation

Don‟t have time to make my own investment decision

To explain various investment options

Want to make sure I am investing enough to meet my financial goals

16) From where do you purchase mutual funds?

Directly from the AMC‟s Brokers only

Brokers / Sub Broker Other Sources

17) Rank the following feature of the mutual fund that attract you most.

Diversification

Professional Management

Reduction in risk and transaction cost

Helps in achieving long term goals

18) According to you which is the most suitable stage to invest in mutual funds?

Young unmarried stage

Young married with children stage

Married with older children stage

Pre-retirement stage