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.
P
R = Return of the portfolio.
f
R = 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
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
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-
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

~ 16 ~
3.3 Diversified Fund
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
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)
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
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
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
mutual fund is more risky compared to other. BNP Paribas Tax Advantage Plan (G) SD low in this
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)
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
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
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
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
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-
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%.
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%
In balanced fund all mutual funds average SD is 16.29. In that HDFC Prudence Fund (G) SD high in
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
I have found Sharpe Ratio of mutual funds and its average is 0.80. In that HDFC Balanced Fund (G)
here you earn more than risk free rate. DSP BlackRock Balanced G Sharpe Ratio low compare to

~ 22 ~
3.7 Money Market Fund
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
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)
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
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
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
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
In debt fund all mutual funds average SD is 1.94. In that Sundaram Bond Saver (G) SD high in
mutual fund is more risky compared to other. PineBridge Short Term - SP (G) SD low on this
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
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
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%
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
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
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
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)
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

~ 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:-
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:
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
Diversified Fund:-
this diversified fund on the basis of return, Sharpe ratio and Alpha. Top 3 mutual funds are as
follows:
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

~ 28 ~
ELSS Fund:-
this ELSS fund on the basis of return, Sharpe ratio, Treynor ratio and Alpha. Top 3 mutual funds are
as follows:
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
Index Fund:-
this index fund on the basis of return, Sharpe ratio, Treynor ratio and Alpha. Top 3 mutual funds are
as follows:
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
Balanced Fund:-
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
than risk free rate.
Money Market Fund:-
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 ~
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
Debt Fund:-
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:
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
MIP Fund:-
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:
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
Gilt Long Term Fund:-
this gilt long term fund on the basis of return, Sharpe ratio, Treynor ratio and Alpha. Top 3 mutual
funds are as follows:
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

~ 30 ~

~ 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
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
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 to equity as an investment instrument, 6%
respondent had given 4th
preference to equity as an investment instrument, 25% respondent had
given 5th
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
% 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%
preference to the FD Bank & Corporate as an investment instrument, 1%

~ 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
% 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 the real estate as an investment
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
% 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 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
% 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 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.

~ 42 ~
Gold As Investment Instrument Given In Ranked:-
Gold As Investment Instrument Given In Ranked
Rank 1 2 3 4 5 6 7 Total
% 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 the gold as an investment
preference to the gold as an investment instrument, 16%
preference. 12%
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
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%
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
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%
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
% 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 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
% 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 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
% 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 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
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
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
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
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
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
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
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
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
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
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 ˃ χ2
tab
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
χ2
cal ˃ χ2
tab
cal ˃ χ2
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
Age
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
χ2
cal ˃ χ2
tab
cal ˃ χ2
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
Age
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
χ2
cal ˃ χ2
tab
cal ˃ χ2
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
Income
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
χ2
cal ˃ χ2
tab
cal ˃ χ2
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
Gender
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
χ2
cal > χ2
tab
cal ˃ χ2
gender of the investors and risk willingness are dependent of each other.

~ 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

~ 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.

Mutual Fund Major Research Project 2

Mutual Fund Major Research Project 2

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