INTRODUCTION

MUTUAL FUNDS

Mutual fund is the pool of the money, based on the trust who invests the savings of a
number of investors who shares a common financial goal, like the capital appreciation and
dividend earning. The money thus collect is then invested in capital market instruments
such as shares, debenture, and foreign market. Investors invest money and get the units as
per the unit value which we called as NAV (net assets value). Mutual fund is the most
suitable investment for the common man as it offers an opportunity to invest in diversified
portfolio management, good research team, professionally managed Indian stock as well
as the foreign market, the main aim of the fund manager is to taking the scrip that have
under value and future will rising, then fund manager sell out the stock. Fund manager
concentration on risk – return trade off, where minimize the risk and maximize the return
through diversification of the portfolio. The most common features of the mutual fund
unit are low cost.

ADVANTAGES OF MUTUAL FUNDS

Mutual funds have designed to provide maximum benefits to investors, and fund manager
have research team to achieve schemes objective. Assets Management Company has
different type of sector funds, which need to proper planning for strategic investment and
to achieve the market return.

• Portfolio Diversification: Mutual Funds invest in a well-diversified portfolio of

securities which enables investor to hold a diversified investment portfolio (whether
the amount of investment is big or small).

• Professional Management: Fund manager undergoes through various research

works and has better investment management skills which ensure higher returns to
the investor than what he can manage on his own.

• Less Risk Investors acquire a diversified portfolio of securities even with a small
investment in a Mutual Fund. The risk in a diversified portfolio is lesser than
investing in merely 2 or 3 securities.

• Low Transaction Costs: Due to the economies of scale (benefits of larger

volumes), mutual funds pay lesser transaction costs. These benefits are passed on to
the investors.

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 • Liquidity: An investor may not be able to sell some of the shares held by him very
easily and quickly, whereas units of a mutual fund are far more liquid.

• Choice of Schemes: Mutual funds provide investors with various schemes with
different investment objectives. Investors have the option of investing in a scheme
having a correlation between its investment objectives and their own financial
goals. These schemes further have different plans/options

• Transparency: Funds provide investors with updated information pertaining to the

markets and the schemes. All material facts are disclosed to investors as required by
the regulator

• Flexibility: Investors also benefit from the convenience and flexibility offered by
Mutual Funds. Investors can switch their holdings from a debt scheme to an equity
scheme and vice-versa. Option of systematic (at regular intervals) investment and
withdrawal is also offered to the investors in most open-end schemes.

• Safety: Mutual Fund industry is part of a well-regulated investment environment

where the interests of the investors are protected by the regulator. All funds are
registered with SEBI and complete transparency is forced.

DISADVANTAGE OF MUTUAL FUNS

The mutual fund not just advantage of investor but also has disadvantages for the funds.
The fund manager not always made profits but might creates loss for not properly
managed. The fund have own strategy for investment to hold, to sell, to purchase unit at
particular time period.

• Costs Control Not in the Hands of an Investor: Investor has to pay investment
management fees and fund distribution costs as a percentage of the value of his
investments (as long as he holds the units), irrespective of the performance of the
fund

• No Customized Portfolios: The portfolio of securities in which a fund invests is a

decision taken by the fund manager. Investors have no right to interfere in the
decision making process of a fund manager, which some investors find as a
constraint in achieving their financial objectives.

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• Difficulty in Selecting a Suitable Fund Scheme: Many investors find it difficult to
select one option from the plethora of funds/schemes/plans available. For this, they
may have to take advice from financial planners in order to invest in the right fund
to achieve their objectives

TYPES OF MUTUAL FUNDS

4
 STATEMENT OF THE PROBLEM

Savings are excess of income over expenditure for any economic unit. Savings flows
into investment for a return but savings kept as cash are non productive and do not
earn anything. Savings are invested in assets depending on their risk and return
perception of investors like return but at the same time they dislike risks making an
investment a difficult art which people lacks.
There are different investment methods. Mutual funds are one among them. An
investment program funded by shareholders that trade in diversified holdings and is
professionally managed. The mutual fund companies appoint efficient and
professional fund managers but the selection for the scheme lies in the hands of the
investors himself. It requires adequate skills here comes role of financial firms. This
study analysis various mutual funds schemes and it will help to evaluate which
scheme is better.

Few research questions in this respect are:

How well have mutual funds performed in terms of returns and risk during the given
period? If the mutual funds have completely over performed the market? How the
mutual funds are performing in different schemes? To access the expectation level of
the mutual funds. Why people in India investing in mutual funds & what are is their
attitude towards this type of investment? If the investors are happy with the
performance? What is the impact of regulatory norms on mutual funds and are the
norms being followed. Is the present type of fund execution data spread sufficient?
These are the some questions that the study tries to answer.

5
 RESEARCH PAPERS REVIEWED

Author
& year Topic Objectives Methodology Findings
A Study of Investors To know investor view Source : primary data Most of the people are

1 Perception towards towards Mutual fund Sample Size: 30 hesitant in going for
Mutual Funds in the To know the awareness Tools : Chi Square new age investments
Mane, P.
City of Aurangabad of mutual fund in like mutual funds.
(2016)
Aurangabad people People prefer less
To know the preference riskier investment
of people for investment
A comparative study To compare mutual fund source: primary data Equity investment is

2 of Mutual Fund investment with direct secondary data more favored.

Investment vs Equity equity investment. Sample size: 100 Proper education is
Pasalkar,
Investment of Indian To study the preferences Respondents required about mutual
N.V.
Individual Investors of individual investors method: Simple funds.
(2015)
investing in mutual random sampling
funds.
To study the present
practices of mutual fund
investors.

3 A comparative To study the Source: secondary All the funds are

performance
performance of selected data having positive
evalution of selected
mutual funds mutual funds schemes Tools: standard correlation with Nifty.
Shukla, S.
under different 5 deviation, beta, alpha,
(2015)
categories R squared, Sharpe
To examine the return ratio
from the above selected
mutual funds
To know whether the
mutual funds are able to
provide reward to

6
 variability and volatility
To identify security
market return with fund
return for the study
period.
Growth and To analyse Growth of descriptive research Private sector have
Performance of Asset Under Management Source: secondary increased their asset
4 Indian Mutual Fund To analyse the growth of data base manifold
Ramanujam, Industry during Past Asset under Management
V., Decade Institution Wise. The asset under
Bhuvaneswari To examine Sector wise management has
,A mutual fund sales and shown growth in all
(2015) mutual fund redemption. the sectors
To analyse the Scheme
wise resource
mobilization by mutual
fund
To examine the total
number of Schemes and
Number of folios
Comparative To study the various Source: Secondary Election result, Crisis,

5 Analysis of Mutual schemes available at Data Inflation, Budget and

Fund Schemes Kotak Mutual Fund and Method: Convenience any such big events
available at Kotak HDFC Mutual Fund. Sampling. (factors) affect on the
Bhutada, M.
Mutual Fund and To analyze and Tools : Standard performance of
(2015)
HDFC Mutual Fund compare the performance Deviation, Sharpe Mutual Fund Schemes.
of different mutual fund Ratio, Beta, R Risk taken by different
schemes offered by Squared, Alpha schemes, Alpa & Beta
Kotak Mutual Fund and ratio and portfolio are
HDFC Mutual Fund. the major reasons
To know the factors that behind the difference
affects on the in performance of both
performance of mutual Mutual Fund Schemes
fund schemes.
To find out the best
scheme available for
investors by comparing

7
 their performance.
To compare the similar
schemes of Kotak
Mutual Fund with HDFC
Mutual Fund and
find out the reasons behind
the difference in their
performances.
Investors’ Perception To analysis the impact of Source: Primary data
Investors’ perception
6 And Attitude demographic factors in Size:50 respondents
is dependent on the
Towards Mutual influencing buyers Method: Random
demographic profile.
Fund As An decision. sampling method
Sharma, P., Liquidity, flexibility,
Investment Option To identify the intensity Descriptive statistical
Agarwal, P. tax savings, service
of various factors that Tool: Rank and Chi –
(2015) quality and
positively and adversely Square
transparency etc. are
affect buyer’s decision.
the factors which have
a higher impact on
perception of investors
Perceptions of To explore the important Source: primary data. Mutual funds are
Investors towards
7 aspects of Mutual Funds Secondary data looked upon as a
Mutual Funds: An
Analytical Study in affecting the perception Size: 136respondents transparent and low
Odisha
of mutual fund investors. Tools: descriptive cost investment
Mishra, R.
To examine the statistics, Exploratory vehicle.
(2015)
difference of perception factor Analysis and ‘t’ Return and future
of large and small mutual test respective ar important
fund investors on the factors.
basis of the explored
aspects of mutual funds

Performance To study the Source: secondary Majority of funds

8 evaluation of mutual performance of selected data. selected for study have

funds: A study of diversified equity mutual Tools : Standard outperformed under
selected diversified funds in india deviation, beta, Sharpe Ratio as well
Chawala, P.
equity mutual funds To compare the coefficient of as Treynor Ratio.
S.
in india. performance of selected determination.
(2014)
diversified equity mutual
funds in india.

8
 Performance To examine the risk and Data: secondary data Open-ended debt
evaluation of debt return component among Tool: arithmetic mean, mutual funds have not
9 mutual fund schemes these mutual funds. standard deviation, performed better than
in india To study the relationship beta, co-efficient of
KAUR,R. between NAV and determination, Sharpe, The benchmark
(2014) market portfolio return Treynor, Jensen Alpha indicators.
(BSE Sensex). and Fama‟s Measure. average return of the
To evaluate the return of schemes is less than
these mutual funds the market index.
according to the Fama‟s
model
Investor’s To analyze to what Size:100 respondents Investors prefer high
Preferences towards extend the mutual fund is Method: convenient return at low level of

10 Mutual Fund Industry effective as an Source: Primary data risk, safety liquidity.
in Trichy investment mode to the Secondary data. Investors are willing to
investors. Tools : Chi-square take moderate and low
Rathnamani,
To study the growth of test, Pearson level risk.
V.
mutual fund industry in Correlation, cross
(2013)
India. tabulation
To analyze the investors
awareness and
perception regarding
Mutual fund investment.
To find preference of
investors about different
investment avenue
To find out which factors
attracts investors to
invest in mutual fund
A Study On The To evaluate the Source: secondary large cap schemes

11 Performance Of performance of different data outperformed the

Selected Large Cap mutual fund schemes on category averaged and
And Small & Mid the basis of returns and the bench mark
Vanaja, V.,
Cap Mutual Fund comparison with their indices.
Karrupasamy,
Schemes In India bench marks.
R.
To appraise the
(2013)
performance of different

9
 category of funds using
risk adjusted measures as
suggested by Sharpe,
Treynor and Jensen.
To find out if there is a
significant difference in
the performance of
different category of
funds.
Performance To study the Source: secondary All the funds have

12 Evaluation of Equity performance of a growth data performed well in the

Mutual Funds (On scheme of a selected Tools: standard high volatile market
Selected Equity mutual funds deviation, beta, alpha,
Narayanasam
Large Cap Funds) To examine the return R squared, Sharpe
y, R.
from the selected mutual ratio
Rathnamani,
fund
V.
To know whether the
(2013)
mutual funds are able to
provide reward to
variability and volatility
To identified security
market return with fund
return.
Preferences of To identify the factors Source: Primary data High return and tax

13 investors for that influences the Secondary Data benefits are preferred
investment in mutual preferences of the Method: Descriptive factors.
funds in india investors for investment research
Rana, D.
in mutual funds Tools: factor analysis, Bank is the main
(2013)
To analyze investment and Chi- square test factor as distribution
options other than mutual channel for
funds investment.
To plan for promotion of
mutual fund investment
in Kumaun Division of
India.

10
 Performance To investigate the Tools: Standard For Indian small
evaluation of mutual financial performance deviation , (Beta investors mutual funds

14 funds in India with of the mutual funds value) covariance, are best investment
special reference to with the tools of return, Sharpe’s ratio option.
Zaheeruddin,
selected financial standard deviation and ,Treynor's ratio
M.,
intermediaries beta.
Sivakumar, P.
To evaluate the selected
Reddy, S.
funds assessment on the
(2013)
basis of various
performance ratios
(Sharpe, Treynor,
Jensen)
To compare HDFC,
Birla sun life and ICICI
equity performance
with the S&P CNX
Nifty Index, to give
rankings of mutual
funds by their
outstanding
performance
A Study on To find out the Source: Secondary
HDFC fund has
Performance performance of equity data
outperformed
15 Evaluation of mutual funds in selected Tools : Sharpe’s
the benchmark from
Selected Banks banks. Performance Index,
Revathy, S. sundram growth funds.
Equity Mutual Funds To analyze the risk and Treynor Performance
Santhi, V.
return of selected banks index, Standard
(2013)
in equity mutual funds. Deviation
To compare the
performance among the
selected banks in equity
mutual funds.
To identify the suitable
equity mutual fund
among selected banks
equity mutual funds

11
 Investor’s preference To find out the most Size: 300 Investors. Maximum investors

16 towards mutual fund preferred Investment Source: Primary Data are aware about Banks
in comparison to Avenue of the investors Method: Snowball & LIC investment
other investment of Mathura. Sampling avenues only.
Agrawal, G.,
avenues To analyze the Return is the main
Jain, M.
investor’s preference criterion of investors
(2013)
towards investment in regarding their
mutual funds when investments .
other investment
avenues are also
available in the market.
To find the main bases
of different investment
avenues, an investor
thinks before investing.
To find out the overall
criterion of investors
regarding investment.
Evaluating the To evaluate the Source: secondary HDFC Top when

17 Performance of some performance of selected data compared with all

selected open ended open ended equity Method: descriptive other funds.
equity diversified diversified Mutual fund and analytical in There is low variation
Subashini, K.
Mutual fund in in India nature exists between market
(2013)
Indian mutual fund To measure the risk - Tools; index and fund
Industry return relationship and Co- variance performance of
market volatility of the Beta. HDFC.
selected mutual funds Standard deviation.
To analyze the risk Correlation.
adjusted performance Co-efficient of
the selective open ended variation
equity diversified
mutual fund through
various techniques
To suggest strategies to
invest in a profitable
mutual fund

12
 Performance To analyse Risk and Data: Secondary data Mutual funds are best

18 evaluation of select Returns of select equity Tools: Average option for small
equity funds in india funds Growth Rate (AGR), investors.
Burlakan,K.
To evaluate equity Compounded Annual
Chiruvoori,R.
funds and suggest Growth Rate (CAGR),
V.
investors about Standard Deviation,
(2013)
outperforming funds Beta, Sharpe Index
model, Treynor model
A study on To study the socio- Risk free returns are

19 investment avenues economic profile of Source: primary Data more preferred.

with particular select individual Method: stratified Majority of the
reference to mutual investors. convenience sample respondents prefer
USHARANI,
fund To assess their saving Size:150 individual growth scheme and
M.
objectives. income scheme.
(2012)
To identify the
preferred savings
avenue of the
respondents.
to identify their
preferred mutual
scheme.
Comparative study To evaluate and Source: Secondary Most of the mutual

20 on performance compare the data fund have given

evaluation of mutual performance of equity Tools: Beta, Standard positive return during
fund schemes of diversified mutual fund Deviation, Sharpe’s 2007 to 2011.
Prajapati,
Indian companies schemes of selected Index, Treynor, HDFC and Reliance
K.P.,
companies Jensen’s absolute mutual fund have
Patel, M.K.
To compare the measure, Fama’s performed well as
(2012)
performance of equity measure compared to the
diversified mutual fund Sensex return
schemes of selected
companies vis-à-vis the
market

13
 Performance To classify the mutual Source: secondary Competition among

21 evaluation of private fund schemes into data the private and public
and public sponsored different categories and Tool; Treynor ratio, players has increased
Kumar, l.n.,
mutual funds in india analyze the performance Sharpe Ratio and the choice of mutual
Devi, v.R.
of different private and Jensen ratio. funds schemes to the
(2011)
public mutual funds. investors
To evaluate performance
of different mutual funds .
schemes on the basis of
risk- return parameters
and benchmark indices.
To appraise performance
of private and public
mutual funds using risk
adjusted measures as
suggested by Sharpe,
Treynor, and Jensen.
To find out if there is a
significant difference in
the performance of
private and public
mutual funds.
Performance To examine the funds Tools: return, standard Future of Mutual

22 evaluation of open sensitivity to the market deviation, coefficient Funds in India has lot
ended schemes fluctuation in the terms of determination, Beta, of positive things.
KUMAR, V.
of mutual funds of Beta. Sharpe ratio, Treynor Competition between
(2011)
To appraise the ratio, Jenson’s private and public
performance of mutual measures. players is increasing.
funds with regard to
risk-return adjustment,
the model suggested by
Sharp, Treynore and
Jensen

14
 An empirical study To gain practical Data collection- Mutual fund is a

23 on indian mutual insight into application Secondary data unique financial

funds equity of Sharpe’s, Treynor’s & Sampling technique- instrument for
diversified growth Jenson’s ratios. To Judgment sampling beginners.
Ali, S.I.N.
schemes” and their understand the Sample size- 13 India Private financial
(2008)
performance interdependence of funds mutual fund player’s Indian
evaluation & Index (BSE 200) economy has excelled
To evaluate the with positive note.
Performance & rank/rate
the funds on the basis of
aforesaid ratios.
An Empirical Study To determine the Data: secondary The Sharpe Ratio
on the Performance performance of select Tool: Sharpe ratio indicates good
24 of Select Mutual open end mutual fund Treynor ratio performance by
Subha, M.V. Fund Schemes in schemes using various Jensen differential majority of the
Bharath,J. India statistical measures like return measure scheme.
(2007) Sharpe ratio, Treynor Sharpe differential The returns of the
ratio, and Jensen return measure, and funds are also positive.
Differential measure. Fama’s components of
To analyze the investment
risk-return relationships performance
of the select open ended
mutual fund schemes.
Analysis of To examine the Market risk and

25 components of degree of correlation that Data Source: market return factors

investment exists between fund and secondary data have shown closer
Anand,S.
performance – an market return correlation with the
Murugaiah,V.
empirical study of To understand the fund return.
(2003)
mutual funds in india impact of fund specific Mutual funds were not
characteristics on able to compensate the
performance investors for the
To evaluate the additional risk that
diversification and they have taken by
selectivity skills of fund investing in the mutual
mangers funds.

15
 BOOK REVIEWED

Title: MANAGING INVESTMENTS

Author: PRASANNA CHANDRA
Published: 1998
Pages: 388
Managing investments provides a guided tour of the so-called ‘complex’ world of
investments and seeks to improve your skills in playing the investment game.
The book:
Describe the characteristics of various Investment options available to
investors.

Discusses how the capital market functions.

Explains the techniques used by professionals.

For analyzing and valuing investment option.

Discusses the implications of modern research in the field of investments.

Presents a framework for portfolio management.

Provides insights into the strategies followed by the investment wizards of

the world.

Sensities the reader to pitfalls in the investment game.

Offers a set of guidelines for investors with varying inclinations.

The book is organized into four parts as follows:

Part 1 Investment settings

Consisting three chapters
Chapter 1 provides an overview of the field of investments.
Chapter 2 describes the features of various investment alternatives.
Chapter 3 explains how the securities market functions.

16
Part 2 Investment Analysis
Consisting three chapters
Chapter 1 helps to understand the basic methods of analyzing fixed income
instruments this chapter seeks to provide such grounding.
Chapter 2 this chapter looks at the determinants of intrinsic value and examines a
frame work helpful in estimating them.
Chapter 3 this chapter discusses the basic premises of technical analysis, explains
the more commonly used tools of technical analysis, and evaluate the usefulness of
technical analysis.

Part 3 Investment Managements

Consisting of four chapters
Chapter 1this chapter highlights on the key insights provided by two seminal
developments, viz, the efficient market theory and the assets pricing theory.
Chapter 2 discusses the process of portfolio management.
Chapter 3 this helps us to resolve the key issues related to the process of
investment management and investment decisions.
Chapter 4 seeks to provide s concise view of the methods and different strategies
followed by Investment experts.

Part 4 Technical Supplements

Consisting of four chapters
Chapter 1 focus on the concepts and financial techniques which is useful in
improving the quality of security valuation.
Chapter 2 discusses the future and options are employs by portfolio,
Chapter 3 discusses the basic of portfolio theory and asset pricing theories.
Chapter 4 discusses the issues in portfolio management.

17
 RESEARCH GAP

The study done here has few gaps which are to be filled up and studied further.
Analysis of performance and comparison of mutual funds in India, in terms of
growth, size and volume has to be provided to build up a strong study. A degree of
correlation is very important between funds and market return and the impact of
funds specific characteristic on the fund performance. This correlation has to be
developed so as to have a better idea on how one parameter can affect the other.
Evaluation of ratios performance and ranks has to be focused more on the basis of
foreside ratios so as to get a better understanding of interdependence among funds
and index.

18
 JUSTIFICATION

The mutual fund is an important financial institution which can play a significance
role in the development of any country. If they perform in an efficient way and to
the expectation of the investing public, then a large number of investors can be
attracted towards these.
Today it is noticed that s large number of mutual funds schemes has been floated in
the market. It is very difficult for average investors to examine their performance.
Thus, it is very important to evaluate the performance of the mutual funds so that
the retail investors can make valued judgment for selecting the mutual funds for
their investment purpose. Further, it is also significant to know which mutual funds
is functioning as the prescribed regulatory norms whether the investment decisions
have been taken by the fund managers as per the guideline, or not. It is essential to
ensure due diligence, transparency and safety in portfolio selection by the mutual
funds.

19
 OBJECTIVES

To examine the trends in term of growth and volume of mutual funds in India.

To evaluate and compare the performance of different mutual funds schemes

on the basis of return.

To suggest strategies to invest in a profitable mutual funds.

20
 HYPOTHESIS

Ho1: There is no significant difference in the volume and growth of selected

mutual fund schemes on growing trend in India.

Ho2: There is no significant difference in the performance of different mutual

funds schemes on the basis of return.

21
 RESEARCH METHODOLOGY

Research methodology is a way to solve the research problem systematically.

While designing the research work the following will be adopted.

TYPE OF STUDY:

This type of study is basically Exploratory in nature (when a study is undertaken

with the objective either to explore an area where little is known or to investigate the
possibilities of undertaking a particular research).

SAMPLING TECHNIQUE

Sampling techniques used is Stratified random sampling (where the

population is divided into different subgroups or strata, then randomly
selects the final subjects).

SAMPLINF DESIGN

To study the financial performance of mutual funds, the sampling frame will be selected
after considering the number og mutual funds, asset under management and the
schemes of mutual funds currently operating in India. Out of 44 mutual funds
companies having total AUM of ₹ 1447431.49, top seven companies will be selected
which are having 70 percent AUM of the total schemes in the market. There schemes
will be divided under 4 broad categories – Equity funds, Debt Funds, Hybrid funds and
Liquid funds. Further 25 percent of the total current schemes prevailing in the market
will be taken. Schemes comparison will be made on the basis of their year of inception.
The time period of the study will be from 2013-14 to 2017-18.The schemes launched
after 31’Mar’2015 will not be considered.

DATA COLLECTION

For the purpose of the study, two sets of data have been collected. One set of data has
been collected from secondary sources which include the Capital Market, Chartered
Financial Analyst, Outlook, SEBI annual reports, RBI Reports on Currency and Finance,
RBI Bulletin, Management Accountant, Portfolio Organizer, Economic and Political
Weekly, Finance India etc. The data relating to growth of mutual fund industry and
regulatory framework of mutual fund will be collected from www.sebi.gov.in. Mutual

22
fund schemes will be collected on quarterly basis (first date of each quarter) for the
study period from the Financial Express, Economic Times, Business Standard and
various websites such as www.amfiindia.com, www.mutualfundindia.com. In case, first
day of any quarter being a holiday, NAV of the next working day was taken as NAV of
a fund does not change on a holiday. For evaluating market return and risk, S&P CNX
Nifty, BSE Sensex, BSE 100, BSE 200 have been taken as benchmark indices.

ANALYSIS OF DATA

The performance of selected funds will be evaluated using average rate of return of fund,
standard deviation, Risk/Return, Sharpe Ratio, Treynor ratio and Jensen ratio. Return
alone should not be considered as the basis of measurement of the performance of a
mutual fund scheme. Risk associated with a fund, in a general, can be defined as
variability or fluctuations in the returns generated by it. The higher the fluctuations in
the returns of a fund during a given period, higher will be the risk associated with it.
Standard deviation is a statistical measure of the range of a fund's performance, and is
reported as an annual number. When a fund has a high standard deviation, its range of
performance has been very wide, indicating that there is a greater potential for volatility.
The most common measures that combine both risk and reward are Treynor ratio,
Sharpe Ratio and Jensen ratio

RISK ANALYSIS;

1. Standard Deviation: it allows us to evaluate the volatility of the fund. The

standard deviation measures the risk by measuring the degree which the
fund fluctuates in relation to its mean return

2. Beta: It measures the volatility of a fund’s return, relative to a given index.

3. Coefficient of Determination: a number that indicates the proportion of

the variance in the dependent variable that is predictable from the
independent variable.

RETURN ANALYSIS;

Average Return will be calculated for analyzing return on Mutual Funds.

23
PERFORMANCE ANALYSIS

1. Treynor’s index :
(Rp – Rf) ÷ βp
Higher value of Treynor’s index indicates better performance of portfolio and vice versa.
The Treynor’s measure of portfolio performance is relative measure that ranks the funds
in terms of risk (market risk) and return. The index is also termed as reward to volatility
ratio.

2. Sharpe’s index :
(Rp – Rf) ÷ σp
Higher value of Sharpe’s index indicates better performance of portfolio and vice versa.
The Sharpe’s measure of portfolio performance is also relative measure that ranks the
funds in terms of risk (total risk) and return. The ratio is also termed as reward to
variability ratio.

3. Jensen’s Measure :
αP = rP – [rf + βP ( rm – rf ) ]
Jensen's measure is one of the ways to help determine if a portfolio is earning the proper
return for its level of risk. If the value is positive, then the portfolio is earning excess
returns..

4. R Squared:
This is a measure of correlation of a fund’s movement to that of an index.

24
 CHAPTERIZATION

Chapter-1: INTRIDUCTION

1.1 Brief introduction about mutual funds

1.2 Advantage of mutual funds
1.3 Disadvantage of mutual funds
1.4 Types of mutual funds

Chapter-2: RESEARCH METHODOLOGY

2.1Review of literature
2.2Research Gap
2.3Objective of the study
2.4Hypothesis of the study
2.5Sampling design
2.6Data collection
2.7Data analysis tools

Chapter-3: PROFILE OF SELECTED MUTUAL FUNDS

Chapter-4: OVERVIEW OF MUTUAL FUNDS

4.1 Concept of Mutual Funds

4.2 Present scenario of mutual funds
4.3 Importance of mutual funds
4.4 Classification of mutual funds
4.5 Growth trend of mutual funds
4.6 Why should investors invest in mutual funds
4.7 Risk involved in mutual funds

25
Chapter-5: REGULATORY FRAMEWORK AND ORGANIZATION OF
MUTUAL FUNDS IN INDIA

5.1 Introductions
5.2Regulation of mutual funds
5.3SEBI guideline for mutual funds
5.4General guidelines
5.5Key financial terms
5.6Schems of mutual funds
5.7Organization of mutual funds
5.8Fund manager of the asset management company
5.9Role of Association of mutual funds of India
5.10Major Mutual funds companies in India

Chapter-5: DATA ANALYSIS & INTERPRETATION

Chapter -6: FINDING, CONCLUSION & SUGGESTIONS

Annexure
References
Bibliography
Webliography

26
 REFERENCES
(as on 1’Sep’2016)

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