A

PROJECT SYNOPSIS

ON

A COMPARITIVE STUDY OF MUTUAL FUNDS

AT

ICICI BANK

K. NAGALAXMI

1175-23-672- 066

DEPARTMENT OF BUSINESS MANAGEMENT

SAROJINI NAIDU VANITHA MAHA VIDYALAYA
(AFFILIATED TO OSMANIA UNIVERSITY)
EXHIBITION GROUNDS, NAMPALLY
HYDERABAD - 500001(2023-2025)
 DECLARATION

I, K. NAGALAXMI hereby declare that this project synopsis titled " A COMPARITIVE
STUDY ON MUTUAL FUNDS” in “ICICI BANK.” submitted by me to the Department of
Business Management, Osmania University, is a Bonafide work undertaken by me and it is not
submitted to any other University of Institution for the award of any degree/diploma/certificate
or published any time before.

K. NAGALAXMI
1175-23-672-066 Signature of the Student
 CERTIFICATE

This is to certify that K NAGALAXMI (H.T.NO. 1175-23-672-066) is a bonafide student of this

college for the academic years 2023-2025. She has submitted the project synopsis titled “A
COMPARATIVE STUDY ON MUTUAL FUNDS” undertaken at “ICICI BANK ".

GUIDE SIGNATURE DIRECTOR SIGNATURE

 INDEX

S.NO TABLE OF CONTENT PAGE NO

CHAPTER-1 INTRODUCITON

1.1 STATEMNT OF THE PROBLEM

1.2 OBJECTIVES OF THE STUDY

1.3 NEED OF THE STUDY

1.4 SCOPE OF THE STUDY

1.5 RESEARCH METHODOLOGY

1.6 LIMITATIONS OF THE STUDY

CHAPTER-2 REVIEW OF LITERATURE

CHAPTER-3 INDUSTRY AND COMPANY PROFILE

CHAPTER-4 DATA ANALYSIS AND INTERPRETATION

CHAPTER-5 FINDINGS, CONCLUSIONS AND

SUGGESTIONS

5.1 FINDINGS

5.2 CONCLUSIONS

5.3 SUGGESTIONS

BIBLIOGRAPHY

ANNEXURE
1.1 TITLE OF THE PROJECT
A COMPARITIVE STUDY OF MUTUAL FUNDS

1.2 STATEMENT OF THE PROBLEM

The increasing popularity of mutual funds as a preferred investment option has led to a wide

variety of schemes available in the market, including equity, debt, hybrid, and sector-specific

funds. However, the challenge faced by investors is selecting the most suitable fund that aligns

with their financial objectives, risk tolerance, and investment horizon. The performance of these

funds varies significantly, with differences in risk-return characteristics and overall performance.

This study aims to conduct a comparative analysis of various mutual fund schemes, focusing on

evaluating their risk-adjusted returns, volatility, and performance relative to benchmark indices.

The findings will provide valuable insights to investors, helping them make informed decisions

and optimize their portfolios for better returns while managing associated risks.
1.3 INTRODUCTION:

A mutual fund is a trust designed to pool the savings of multiple investors who share a common

financial goal. The pooled money is invested according to a stated objective, and the fund is

collectively owned by all its investors, hence the term “mutual.” The collected funds are invested

in capital market instruments such as shares, debentures, and other securities. Income earned

through these investments, along with any capital appreciation, is distributed among the unit

holders in proportion to the number of units they own.

Mutual funds provide an opportunity for individual investors to participate in a diversified,

professionally managed portfolio of securities at a relatively low cost. This diversification, which

spans across various industries and sectors, helps reduce risk. By spreading investments across a

broad range of assets, mutual funds minimize the impact of any single security's poor

performance on the overall fund.

Investors in a mutual fund, also known as unit holders or shareholders, are allocated units based

on their investment amount. When an investor buys units of a mutual fund, they become a part-

owner of the fund's assets in proportion to their investment. The value of these investments is

reflected in the Net Asset Value (NAV) of the mutual fund scheme. NAV is calculated by

subtracting the fund’s liabilities from the market value of its assets and then dividing this net

value by the total number of units issued. This daily calculation provides a transparent measure

of the fund's value, allowing investors to monitor their investments effectively.

HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at

the initiative of the Government of India and Reserve Bank. Though the growth was slow, but

it accelerated from the year 1987 when non-UTI players entered the industry. In the past

decade, Indian mutual fund industry had seen a dramatic improvement, both qualities wise as

well as quantity wise. Before, the monopoly of the market had seen an ending phase; the Assets

Under Management (AUM) was Rs67 billion. The private sector entry to the fund family

raised the Aum to Rs. 470 billion in March 1993 and till April 2004; it reached the height if Rs.

1540 billion. The Mutual Fund Industry is obviously growing at a tremendous space with the

mutual fund industry can be broadly put into four phases according to the development of the

sector. Each phase is briefly described as under.

First Phase – 1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament by the Reserve

Bank of India and functioned under the Regulatory and administrative control of the Reserve

Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank

of India (IDBI) took over the regulatory and administrative control in place of RBI. The first

scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores

of assets under management.

Second Phase – 1987-1993 (Entry of Public Sector Funds)

1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks

and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India

(GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987

followed by Can bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89),

Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct

92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in

December 1990.At the end of 1993, the mutual fund industry had assets under management of

Rs.47,004 crores.

Third Phase – 1993-2003 (Entry of Private Sector Funds)

1993 was the year in which the first Mutual Fund Regulations came into being, under which all

mutual funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer

(now merged with Franklin Templeton) was the first private sector mutual fund registered in

July 1993.

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and

revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual

Fund) Regulations 1996. As at the end of January 2003, there were 33 mutual funds with total

assets of Rs. 1,21,805 crores.

Fourth Phase – since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated

into two separate entities. One is the Specified Undertaking of the Unit Trust of India with

assets under management of Rs.29,835 crores as at the end of January 2003, representing

broadly, the assets of US 64 scheme, assured return and certain other schemes

The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is

registered with SEBI and functions under the Mutual Fund Regulations. consolidation and

growth. As at the end of September, 2004, there were 29 funds, which manage assets of

Rs.153108 crores under 421 schemes.

Structure of the Indian mutual fund industry:

The Indian mutual fund industry is dominated by the Unit Trust of India and which has a total

corpus of Rs 700bn collected from more than 20 million investors. The UTI has many fund

/schemes in all categories i.e. equity, balanced, income etc. with some being open ended and

some being closed ended. The United Scheme 1964 commonly referred to as US64, which is a

balanced fund, is the biggest scheme with a corpus of about Rs 200bn URI was floated by

financial institution and is governed by a special act of the parliament. Most of its investors

believe that the UTI is government owned and controlled, which, while legally incorrect, is

true for all practical purposes.

The second largest categories of mutual funds are the ones floated by nationalized banks. Can

bank Asset management floated by Canara Bank and SBI Funds Management floated by the

State Bank of India are the largest of these. GIC AMC floated by General Insurance
Corporation and Jeevan Bima Sahayog AMC floated by the LIC are some of the prominent

ones. The aggregate corpus of funds managed by this category of AMC’s is about Rs 150

billion

The third largest categories of the mutual funds are the once floated by the private sector and

by the foreign asset management companies. The largest of these are Prudential ICICI AMC

and Birla SUN LIFE AMC. The aggregate corpus of the asset managed by this category of

AMC s is in excess of Rs 250bn.

Recent Trends in the Mutual Fund Industry

1. Increased Foreign Participation: Foreign-owned mutual fund companies are expanding

their footprint in the market, bringing significant capital and expertise. Their entry has led

to greater competition and has driven improvements in service standards and product

innovation within the industry.

2. Decline of Traditional Nationalized Bank AMCs: Mutual funds launched by

nationalized banks in the early 1990s, along with some smaller private sector AMCs, are

experiencing a decline. These firms often struggled with understanding the mutual fund

business and maintaining service quality, leading to poor performance and market exit.

3. Restructuring and Consolidation: The mutual fund industry is witnessing substantial

restructuring. Some private sector AMCs are merging with others or being acquired by

foreign firms. This consolidation aims to improve operational efficiency and market

position.

4. Technological Advancements: There is a growing adoption of advanced technology in

mutual fund operations, including digital platforms for investing, robo-advisors, and
 sophisticated analytics. This trend is enhancing accessibility, transparency, and efficiency

in fund management.

5. Focus on Investor Education and Enhanced Disclosure: There is an increased

emphasis on educating investors and improving transparency. Foreign firms and

progressive domestic AMCs are setting higher standards for disclosure practices, aiming

to build investor trust and ensure better-informed investment decisions.

6. Rise of ESG (Environmental, Social, and Governance) Funds: Investment in ESG-

focused mutual funds is gaining traction as investors seek to align their portfolios with

ethical and sustainable practices. This trend reflects a growing awareness of corporate

social responsibility and sustainable investing.

7. Growth of Passive Investment Products: The popularity of passive investment

strategies, including index funds and Exchange-Traded Funds (ETFs), is rising. These

products offer cost-effective, diversified investment options and are attracting a growing

number of investors.

8. Shift Towards Direct Mutual Fund Investments: Investors are increasingly bypassing

traditional distribution channels in favor of direct mutual fund investments through online

platforms. This shift is driven by lower costs and greater control over investment choices.

These trends highlight the evolving landscape of the mutual fund industry, characterized by
increased competition, technological innovation, and a stronger focus on investor needs and
preferences.
A mutual fund is a type of professionally managed investment fund that pools money from many
investors to purchase securities such as stocks, bonds, money market instruments, and other
assets. Mutual funds are operated by professional money managers, who allocate the fund's
investments and attempt to produce capital gains and/or income for the fund's investors.
SOME KEY FEATURES OF A MUTUAL FUND ARE AS FOLLOWS
Professional Management
Each fund’s investments are chosen and monitored by qualified professionals who use this
money to create a portfolio. That portfolio could consist of stocks, bonds, money market
instruments, or a combination of all of these.
Fund Ownership
An investor owns shares of a mutual fund, not the individual securities. Mutual funds permit
investors to invest small amounts of money. The pool can be used to buy even those securities
which would have been out of reach for a common individual investor. Thus, investors in mutual
funds benefit from being involved in a large pool of cash invested by other people.
Diversified Investment
Mutual funds have a diversified investment portfolio, which helps in minimizing the risk as the
fluctuation in prices of the individual securities has less effect on the fund’s performance.

BENEFITS OF MUTUAL FUNDS

Risk Diversification
Mutual funds help to diversify the risk associated with the securities because the overall risk of
the particular mutual fund is proportionately divided among all the unit holders of the mutual
fund.
Operated by Professional Manager
Mutual funds are managed and operated by professional managers who are experts in this
particular field, so the unit holders enjoy the professional operation of these mutual funds.
Passive Investment Style
Mutual funds are a passive investment style in which the owners of the units do not participate
directly, but they keep these units passively. They don’t need to participate directly, they only
have to purchase the units and keep them in a passive way.

CLASSIFICATION OF MUTUAL FUNDS

BASED ON MATURITY PERIOD
Open-Ended Funds:
An open-ended fund is a fund that is available for subscription and can be redeemed on a
continuous basis. It is available for subscription throughout the year, and investors can buy and
sell units at Net Asset Value (NAV) related prices. These funds do not have a fixed maturity
date. The key feature of an open-ended fund is liquidity.
Close-Ended Funds:
A close-ended fund is a fund that has a defined maturity period, for example, 5-7 years. These
funds are open for subscription for a specified period at the time of the initial launch. These
funds are listed with a recognized stock exchange.
Exchange-Traded Funds:
Exchange-traded funds combine the features of open-ended and close-ended funds. These funds
may trade on stock exchanges and are open for sale or redemption at predetermined intervals on
the prevailing Net Asset Value (NAV).
Unit Investment Trusts:
Unit Investment Trusts (UTIs) are also issued to the public only once when they are created.
They have a fixed maturity period and a fixed portfolio of securities, which is determined at the
time of creation.

BASED ON INVESTMENT OBJECTIVES OR ASSET CLASS

Equity/Growth Funds:
Equity funds invest a minimum of 65% of their corpus in equity and equity-related securities.
These funds may invest in a wide range of industries or focus on one or more industry sectors.
These types of funds are suitable for investors with a long-term outlook and a higher risk
appetite.
Types of Equity Funds:
Large Cap Fund:
An open-ended equity scheme predominantly investing in large-cap stocks. The minimum
investment in equity and equity-related instruments of large-cap companies shall be 80% of total
assets.
Mid Cap Fund:
An open-ended equity scheme predominantly investing in mid-cap stocks. The minimum
investment in equity and equity-related instruments of mid-cap companies shall be 65% of total
assets.
Small Cap Fund:
An open-ended equity scheme predominantly investing in small-cap stocks. The minimum
investment in equity and equity-related instruments of small-cap companies shall be 65% of total
assets.
Multi-Cap Fund:
An open-ended equity scheme investing across large-cap, mid-cap, and small-cap stocks. The
minimum investment in equity and equity-related instruments of large-cap companies shall be
65% of total assets.
ELSS (Equity Linked Saving Schemes):
An open-ended equity-linked saving scheme with a statutory lock-in of 3 years and tax benefits.
The minimum investment in equity and equity-related instruments shall be 80% of total assets.

Debt/Income Funds:
Debt/income funds generally invest in securities such as bonds, corporate debentures,
government securities, and money market instruments. These funds invest a minimum of 65% of
their corpus in fixed-income securities. By investing in debt instruments, these funds provide low
risk and stable income to investors with preservation of capital. These funds tend to be less
volatile than equity funds and produce regular income.
Types of Debt Funds:
Liquid Fund:
An open-ended liquid scheme whose investment is into debt and money market securities with a
maturity of up to 91 days only.
Ultra Short Duration Fund:
An open-ended ultra-short-term debt scheme investing in debt and money market instruments
with Macaulay duration between 3 months and 6 months.
Low Duration Fund:
An open-ended low-duration debt scheme investing in debt and money market instruments with
Macaulay duration between 6 months and 12 months.
Short Duration Fund:
An open-ended short-term debt scheme investing in debt and money market instruments having
maturity up to 1 year.
Medium to Large Duration Fund:
An open-ended medium-term debt scheme investing in debt and money market instruments with
Macaulay duration between 4 years and 7 years. Portfolio Macaulay duration greater than 7
years.
Money Market Fund:
An open-ended debt scheme investing in money market instruments having maturity up to 1
year.
Corporate Bond Fund:
An open-ended debt scheme predominantly investing in AA+ and above rated corporate bonds.
The minimum investment in corporate bonds shall be 80% of total assets.

Balanced/Hybrid Funds:
Balanced Funds invest in both equities and fixed-income instruments in line with the
predetermined investment objective of the scheme. These funds provide both stability of returns
and capital appreciation to investors.
TYPES OF HYBRID FUNDS:
Aggressive Hybrid Fund:
An open-ended hybrid scheme investing predominantly in equity and equity-related instruments.
Investment in equity and equity-related instruments shall be between 65% and 80% of total
assets, while investment in debt instruments shall be between 20% and 35% of total assets.
Balanced Hybrid Fund:
An open-ended scheme investing in equity and debt instruments. The investment in equity and
equity-related instruments shall be 40% and 60% of total assets, while investment in debt
instruments shall be between 40% and 60%. No arbitrage is permitted in these schemes.
Conservative Hybrid Fund:
An open-ended hybrid scheme investing predominantly in debt instruments, with between 75%
and 90% of total assets, while investment in equity and equity-related instruments shall be 10%
and 25% of total assets.

OTHER SCHEMES
Tax Saving Funds:
Tax-saving schemes offer tax rebates to investors under specific provisions of the Income Tax
Act 1961. These are growth-oriented schemes and invest primarily in equities. Like an equity
scheme, they largely suit investors with a higher risk appetite and aim to generate appreciation
over the medium to long run.
Index Funds:
Index Funds replicate the performance of a particular index such as the BSE Sensex or the S&P
CNX Nifty. The portfolio of these schemes consists of only those stocks that represent the index,
and the weightage assigned to each stock is aligned to the stock’s weightage in the index.
Sector-Specific Funds:
Sector-specific Funds invest in the securities of only those sectors or industries as specified in
the scheme information department. The returns in these funds are dependent on the performance
of the respective sector/industries.

IMPORTANT KEY WORDS RELATED TO MUTUAL FUNDS

NAV: Net Asset Value refers to the total value of the related mutual fund scheme. It shows the
overall value which may vary every day as per the changes in the market.
Units: The value of a mutual fund is divided into units as per the number of persons it is sold.
The value of each unit changes every day.
Unit Holder: The investor who purchases the units of mutual funds is called a unit holder. He/she
may keep as many units as he/she wants.

Future scenario:

1. Enhanced Digital Transformation: The mutual fund industry is expected to see

continued digital transformation with increased adoption of technology. This includes

advanced digital platforms, AI-driven investment tools, blockchain for transparency, and

enhanced robot-advisory services, making investing more accessible and efficient.

2. Growth of Sustainable Investing: The demand for ESG (Environmental, Social, and

Governance) and impact investing is anticipated to grow. Investors are likely to

increasingly prioritize funds that align with their values and ethical standards, leading to a

rise in ESG-focused mutual funds and sustainable investment products.

3. Expansion of Passive Investment Options: Passive investment strategies, including

index funds and ETFs, are expected to continue growing in popularity due to their cost-

effectiveness and simplicity. This trend will likely drive innovation in passive products

and lead to more diverse offerings.

4. Increased Regulatory Scrutiny and Compliance: As the industry evolves, regulatory

bodies are expected to implement stricter regulations to protect investors and ensure

market stability. This will include enhanced disclosure requirements, transparency

standards, and measures to prevent market manipulation.

5. Personalization and Customization: There will be a growing emphasis on personalized

investment solutions. Mutual fund companies are likely to leverage big data and AI to

offer tailored investment strategies and customized portfolios that cater to individual

investor needs and preferences.

6. Rise of Direct-to-Consumer Models: The shift towards direct mutual fund investments

is expected to continue, driven by the growth of online investment platforms and direct

distribution channels. This trend will enable investors to bypass traditional

intermediaries, potentially lowering costs and increasing engagement.

7. Integration of Fintech Innovations: Financial technology (fintech) innovations, such as

automated portfolio management, real-time analytics, and digital wallets, will become

more integrated into mutual fund operations, enhancing the overall investor experience.

8. Globalization of Investment Opportunities: With increasing globalization, investors

will have more access to international markets through mutual funds. This will include

expanded opportunities for cross-border investments and global diversification.

9. Focus on Financial Education: As the industry grows and becomes more complex, there

will be a greater emphasis on financial literacy and education. Mutual fund companies

and regulatory bodies are expected to invest more in educating investors about their

options and the risks associated with different investment products.

10. Increased Competition and Consolidation: The mutual fund industry may experience

further consolidation as firms seek to gain scale and efficiency. Increased competition

will drive innovation and may lead to more diverse and competitively priced investment

products.
CATEGORIES OF MUTUAL FUND:
Mutual funds can be classified as follow:

 Based on their structure:

  Open-ended funds: Investors can buy and sell the units from the fund, at any point

of time.

 Close-ended funds: These funds raise money from investors only once. Therefore,

after the offer period, fresh investments cannot be made into the fund. If the fund is

listed on stocks exchange the units can be traded like stocks (E.g., Morgan Stanley

Growth Fund). Recently, most of the New Fund Offers of close-ended funds

provided liquidity window on a periodic basis such as monthly or weekly.

Redemption of units can be made during specified intervals. Therefore, such funds

have relatively low liquidity.

 Based on their investment objective:

Equity funds: These funds invest in equities and equity related instruments.

With fluctuating share prices, such funds show volatile performance, even

losses. However, short term fluctuations in the market, generally smoothens out

in the long term, thereby offering higher returns at relatively lower volatility. At

the same time, such funds can yield great capital appreciation as, historically,

equities have outperformed all asset classes in the long term. Hence, investment

in equity funds should be considered for a period of at least 3-5 years. It can be

further classified as:

 I) Index funds- In this case a key stock market index, like BSE Sensex or Nifty is tracked.

Their portfolio mirrors the benchmark index both in terms of composition and individual

stock weightages.

ii) Equity diversified funds- 100% of the capital is invested in equities spreading across

different sectors and stocks.

iii) Dividend yield funds- it is similar to the equity diversified funds except that they invest in

companies offering high dividend yields.

iv) Thematic funds- Invest 100% of the assets in sectors which are related through some

theme.

e.g. -An infrastructure fund invests in power, construction, cements sectors etc.

v) Sector funds- Invest 100% of the capital in a specific sector. e.g. - A banking sector fund

will invest in banking stocks.

vi) ELSS- Equity Linked Saving Scheme provides tax benefit to the investors.

Balanced fund:

Their investment portfolio includes both debt and equity. As a result, on the risk-return ladder,

they fall between equity and debt funds. Balanced funds are the ideal mutual funds vehicle for

investors who prefer spreading their risk across various instruments. Following are balanced

funds classes:

Debt-oriented funds -Investment below 65% in equities.

Equity-oriented funds -Invest at least 65% in equities, remaining in debt.

Debt fund: They invest only in debt instruments, and are a good option for investors averse to

idea of taking risk associated with equities. Therefore, they invest exclusively in fixed-income

instruments like bonds, debentures, Government of India securities; and money market

instruments such as certificates of deposit (CD), commercial paper (CP) and call money. Put

your money into any of these debt funds depending on your investment horizon and needs.

I) Liquid funds- These funds invest 100% in money market instruments; a large portion being

invested in call money market.

ii) Gilt funds ST- They invest 100% of their portfolio in government securities of and T-bills.

iii) Floating rate funds - Invest in short-term debt papers. Floaters invest in debt instruments

which have variable coupon rate.

iv) Arbitrage fund- They generate income through arbitrage opportunities due to mis-pricing

between cash market and derivatives market. Funds are allocated to equities, derivatives and

money markets. Higher proportion (around 75%) is put in money markets, in the absence of

arbitrage opportunities.

v) Gilt funds LT- They invest 100% of their portfolio in long-term government securities.

vi) Income funds LT- Typically, such funds invest a major portion of the portfolio in long-term

debt papers.
vii) MIPs- Monthly Income Plans have an exposure of 70%-90% to debt and an exposure of

10%-30% to equities.

viii) FMPs- fixed monthly plans invest in debt papers whose maturity is in line with that of the fund.

INVESTMENT STRATEGIES:

1. Systematic Investment Plan: under this a fixed sum is invested each month on a fixed date of a

month. Payment is made through postdated cheques or direct debit facilities. The investor gets fewer

units when the NAV is high and more units when the NAV is low. This is called as the benefit of Rupee

Cost Averaging (RCA)

2. Systematic Transfer Plan: under this an investor invest in debt-oriented fund and give instructions

to transfer a fixed sum, at a fixed interval, to an equity scheme of the same mutual fund.

3. Systematic Withdrawal Plan: if someone wishes to withdraw from a mutual fund then he can

withdraw a fixed amount each month.

RISK V/S. RETURN:
 Who can invest?

Who can invest in Mutual Funds in India:

First of all, distributors need to be aware of who mutual fund units.

Mutual funds in India are open to investment by

1) Residents including:

 Resident Indian Individuals.

 Indian Companies/Partnership Firms.

 Indian Trust/Charitable Institutions.

 Banks/Financial Institutions.

 Non-Banking Finance Companies.

 Insurance Companies.

 Provident funds.

 Mutual funds.

2) Non-Residents including:

 Non-Resident Indians, and Persons of Indian Origin.

 Overseas Corporate Bodies (OCBs) and

3) Foreign entities, viz.

 Foreign Institutional Investors (FII) registered with SEBI.

  Foreign citizens/ entities are not allowed to invest in mutual funds in India.

1.4 OBJECTIVES OF THE STUDY

 To analyze the overall risk of selected mutual fund schemes.

 To assess the systematic risk of the selected mutual fund schemes.

 To compare the returns of the selected mutual fund schemes with a benchmark

index.

 To perform a peer comparison of the selected mutual fund schemes.

 To evaluate the overall performance of the selected mutual fund schemes in

terms of risk and return.

1.6 RESEARCH METHODOLOGY

The research methodology is designed to identify the problem, collect and analyze relevant

information, and provide alternative solutions to support better decision-making. It is particularly

important in attitude studies, as it aids in gathering crucial data needed by management for both

routine and critical decisions.

Data Sources

1. Primary Data: The primary focus of the research is on primary data, which was collected

through direct interactions with individuals. This method is critical for obtaining accurate and

relevant insights for the study.

2. Secondary Data: Secondary data was used for reference purposes only. This data was gathered

from various journals and websites to support and contextualize the primary data findings.

Duration of Study

The study was conducted over a period of 45 days.

Sampling

1. Sampling Procedure:

o The sample was selected from individuals who are businessmen or government

employees, regardless of their investment status or usage of mutual fund services.

 o Data collection involved personal visits, formal and informal discussions, and the

completion of a prepared questionnaire.

2. Sample Size:

o The sample size for the project was limited to 100 individuals.

3. Sample Design:

o Data analysis was conducted using mathematical and statistical tools.

o The results were presented through various visual aids, such as bar graphs and line

graphs, to illustrate the findings effectively.

Data Analysis

o The collected data was analyzed using appropriate mathematical and statistical methods.

o Findings were presented using graphical representations, including bar graphs and line

graphs, to ensure clarity and ease of understanding.

HYPOTHESIS :

o H1 (Alternative Hypothesis): There is a significant difference in the risk-return

performance of different mutual fund schemes (equity, debt, hybrid, etc.).

o H2 (Alternative Hypothesis): Mutual fund schemes that are actively managed provide

better risk-adjusted returns than passively managed funds.

o H3 (Alternative Hypothesis): There is a positive correlation between the risk level of a

mutual fund scheme and its potential return.

 o H4 (Alternative Hypothesis): Mutual fund schemes with higher volatility tend to offer

higher returns in comparison to those with lower volatility.

o H0 (Null Hypothesis): There is no significant difference in the risk-return performance

of different mutual fund schemes.

1.6.1 NEED OF THE STUDY

The study of the mutual funds industry is crucial for several reasons. First, as financial literacy

improves, there is a growing need to assess and bridge the knowledge gap regarding mutual

funds among potential investors. Second, understanding investor preferences is essential as the

mutual fund sector expands, allowing stakeholders to tailor products and services to meet market

demands. Third, insights into investor behavior, including preferred fund types and investment

strategies, help asset management companies design better products. Fourth, evaluating how

investors manage risk and benefit from diversification can improve risk management strategies

within mutual funds. Finally, the study provides valuable information on how regulatory changes

and industry practices impact investor behavior, aiding policymakers in ensuring the sector’s

growth and stability.

1.6.2 SCOPE OF THE STUDY

A big boom has been witnessed in Mutual Fund Industry in recent times. A large number of

new players have entered the market and trying to gain market share in this rapidly improving

market.

The research was carried on in Hyderabad. I have collected the information of different mutual

funds branches where I completed my Project work. I surveyed on my Project Topic “A

Comparative study of Mutual Fund Industry” on the visiting to individual & government

offices employee.

The study will help to know the interest & preferences of the customers, which company,

portfolio, mode of investment, option for getting return and so on they prefer. This project

report may help the company to make further planning and strategy.
1.6.3 DATA COLLECTION METHODS:

1. Primary Data: The primary focus of the research is on primary data, which was collected

through direct interactions with individuals. This method is critical for obtaining accurate and

relevant insights for the study.

2. Secondary Data: Secondary data was used for reference purposes only. This data was gathered

from various journals and websites to support and contextualize the primary data findings. But

most of the data was collected through the secondary data.

1.6.4 TOOLS FOR THE ANALYSIS:

1. Sharpe Ratio
S=Rp−Rf/σp

Where:

 S = Sharpe Ratio
 Rp = Return of the portfolio or investment
 Rf = Risk-free rate (often the return on government bonds or T-bills)
 σp = Standard deviation of the portfolio's excess return (this represents the risk or volatility)
2.Beta
β=Cov (Ri, Rm)/Var (Rm)

Where:

 β = Beta of the stock or portfolio

 Cov (Ri, Rm) = Covariance between the return of the stock (or portfolio) R1 and the return of the
market Rm

 Var (Rm) = Variance of the market’s returns

3. Standard Deviation
PERIOD OF THE STUDY

The study will be conducted over a period of 45 days. The initial phase will involve

literature review and gathering background information about comparative study of

mutual funds. The second phase will include data collection, which may involve surveys,

interviews, or observations of different mutual funds branches. The final phase will focus

on data analysis, interpretation of findings, and writing the final report. This timeframe

ensures comprehensive research, adequate data collection, by analysis the data.

LIMITATIONS OF THE STUDY

 The time period given for study is very limited.

 Sample size is limited.

 The study may not have time to exposure all dimension.

 CHAPTER - II

REVIEW OF LITERATURE
REVIEW OF LITERATURE:

1. Author: M. Ghosh & K. J. Ray (2021)

Title: A Comparative Study of Mutual Fund Performance: Assessing Volatility and Risk-Adjusted
Returns
Journal Name: Global Finance Review
Abstract: This paper conducts a comparative study of mutual fund performance by focusing on
the volatility and risk-adjusted returns of various equity and debt mutual funds. The authors use
standard deviation and Sharpe ratio as key performance indicators to measure volatility and
returns. The study finds that equity funds exhibit higher returns but also show significant
volatility compared to debt funds. However, the risk-adjusted returns of equity funds are
generally superior, suggesting that equity funds may offer better value for investors with a higher
risk tolerance.

2. Author: N. L. Sharma & M. S. Rathi (2021)

Title: Comparative Performance of Index Funds vs. Actively Managed Funds
Journal Name: Journal of Asset Management
Abstract: This study compares the performance of index funds with actively managed mutual
funds. It uses performance metrics such as return on investment, Sharpe ratio, and alpha to
assess both types of funds. The study finds that while index funds are less costly and provide
returns similar to the market average, actively managed funds have the potential for higher
returns. The paper suggests that investors should evaluate their investment objectives before
choosing between these two options.
3. Author: P. S. Gupta & N. K. Sahu (2020)
Title: The Comparative Study of Mutual Fund Schemes: Evaluating Risk and Return in the Indian
Market
Journal Name: Journal of Investment and Portfolio Management
Abstract: This study provides an in-depth comparative analysis of the performance of various
mutual fund schemes in India. By evaluating funds across different categories such as large-cap,
mid-cap, and sectoral funds, the research investigates their performance using risk metrics like
standard deviation and beta, along with return metrics such as total return and average return.
The results show that while large-cap funds tend to offer steady returns, mid-cap and sectoral
funds present higher risk but also have the potential for higher returns.

4. Author: R. Kumar & A. Singh (2020)

Title: A Comparative Study of Sectoral Mutual Funds in India
Journal Name: Global Journal of Finance and Economics
Abstract: This study evaluates the performance of sectoral mutual funds in India, focusing on the
risk-return characteristics of funds targeting specific sectors like IT, healthcare, and
infrastructure. The research finds that sectoral funds can offer higher returns but also pose
greater risk due to sector-specific volatility. The study emphasizes the importance of thorough
sectoral analysis and diversification before investing in sectoral funds to mitigate potential risks
5. Author: Ramesh B. & K. Meenakshi (2019)
Title: Comparative Study of Equity and Debt Mutual Funds in India: An Empirical Analysis
Journal Name: International Journal of Economics and Business Research
Abstract: This paper presents an empirical analysis comparing the performance of equity and
debt mutual funds in India over a period of 10 years. The authors use performance metrics like
the Sharpe ratio, beta, and the alpha coefficient to assess the risk-return relationship. The study
finds that equity funds outperform debt funds in terms of returns, especially during bullish
market trends, but debt funds are less volatile and more stable during market downturns. The
authors suggest that a diversified portfolio that includes both equity and debt funds is optimal
for investors seeking to balance risk and return effectively.

6. Author: M. I. Mishra & P. S. Kumar (2019)

Title: Comparative Study of Open-ended and Closed-ended Mutual Funds in India
Journal Name: Journal of Financial Research
Abstract: This study compares the performance of open-ended and closed-ended mutual funds
in India, evaluating risk and return using Sharpe ratio and standard deviation. The research finds
that closed-ended funds tend to offer better returns but are less liquid compared to open-ended
funds. It also discusses the advantages and disadvantages of each type of fund, recommending
that investors consider their liquidity needs and risk preferences before choosing between open-
ended and closed-ended mutual funds.
7. Author: P. Sharma & A. Gupta (2019)
Title: Impact of Market Conditions on Mutual Fund Performance
Journal Name: Journal of Financial Analysis
Abstract: This study examines the impact of changing market conditions on the performance of
mutual funds in India. The analysis shows that mutual funds tend to perform better during bull
markets but experience greater volatility during bearish trends. The research suggests that
investors should align their mutual fund investments with market forecasts and adjust their
portfolios to account for market fluctuations.

8. Author: Sandeep S. (2018)

Title: Risk and Return Characteristics of Mutual Funds: A Comparative Analysis
Journal Name: Journal of Financial Studies
Abstract: This paper examines the risk-return dynamics of mutual funds with a focus on equity,
hybrid, and debt funds. It compares these funds using performance indicators like the Sharpe
ratio, Treynor ratio, and Standard Deviation. The study finds that while equity mutual funds
generally provide higher returns, they are accompanied by higher volatility, making them more
suited for risk-tolerant investors. Debt funds, on the other hand, offer stable returns with lower
risk but do not outperform equity funds significantly in terms of returns.
9. Author: Shalini Gupta & Amit Gupta (2018)
Title: A Study of Risk and Return of Mutual Fund Schemes: A Comparative Analysis of Growth
and Dividend Options
Journal Name: Asia-Pacific Journal of Management Research and Innovation
Abstract: This study focuses on a comparative analysis of mutual fund schemes that offer growth
and dividend options. By analyzing their risk-return profiles over a five-year period, the paper
examines how the choice between growth and dividend affects overall portfolio performance.
The study finds that growth funds provide higher long-term capital appreciation, while dividend
funds offer regular income with relatively lower risk. The paper emphasizes the role of investor
preferences in selecting between growth or dividend options.

10. Author: D. Sharma & K. Gupta (2018)

Title: Mutual Fund Performance: A Comparative Study of Large-Cap and Mid-Cap Funds
Journal Name: International Journal of Business and Finance
Abstract: This paper compares the performance of large-cap and mid-cap mutual funds in India.
By evaluating risk and return over a 7-year period, the research finds that large-cap funds
provide more stable returns but with slower growth, while mid-cap funds offer higher growth
potential at a greater risk. The study concludes that investors should assess their risk appetite
and investment horizon before choosing between these two types of funds.
11. Author: S. Tiwari & N. Agarwal (2018)
Title: Mutual Funds and Investor Behavior: A Comparative Analysis of Growth vs. Dividend
Options
Journal Name: Journal of Investment Strategies
Abstract: This paper analyzes investor behavior towards mutual funds offering growth and
dividend options. Using performance analysis tools, the study evaluates the risk-return profile of
both options over a 5-year period. The findings reveal that growth options yield higher returns
over the long term, whereas dividend options provide more consistent income but with
relatively lower returns. The paper concludes by suggesting that investors should align their
investment choices with their financial goals and risk tolerance.

12. Author: R. Prakash & D. Yadav (2017)

Title: Comparative Performance of Mutual Funds in India: A Risk-Return Analysis
Journal Name: Indian Journal of Finance
Abstract: This research paper explores the performance of Indian mutual funds by assessing
both equity and hybrid funds over a 5-year period. By employing key financial metrics such as
alpha, beta, and the Sharpe ratio, the study evaluates the risk-adjusted returns. The analysis
concludes that actively managed mutual funds tend to perform better than passive funds in
terms of returns, but they also come with increased risk. Additionally, the study highlights that
hybrid funds, which combine both equity and debt, offer a balanced approach with moderate
returns and lower risk exposure.
13. Author: J. K. Patil & P. K. Reddy (2017)
Title: Evaluating Risk-Return Performance of Debt and Equity Mutual Funds
Journal Name: International Journal of Financial Engineering
Abstract: This study investigates the risk-return performance of debt and equity mutual funds.
By employing measures like standard deviation, Sharpe ratio, and Treynor ratio, the paper
compares the two types of funds over a 7-year period. The findings suggest that equity funds
have higher returns but also higher risk, while debt funds offer lower risk with moderate returns.
The study recommends a balanced approach for investors with a moderate risk appetite to
invest in both equity and debt mutual funds for optimal returns.

14. Author: K. R. Reddy & S. B. Singh (2017)

Title: Comparing the Volatility of Equity and Debt Mutual Funds in India
Journal Name: Indian Journal of Capital Markets
Abstract: This paper compares the volatility levels of equity and debt mutual funds over a 5-year
period using standard deviation and beta as volatility measures. The research shows that equity
funds exhibit higher volatility but also offer better returns. On the other hand, debt funds are
more stable but offer lower returns. The study concludes that equity funds are more suitable for
long-term investors with a higher risk tolerance, while debt funds are ideal for conservative
investors.
15. Author: M. S. A. Khan (2015)
Title: A Comparative Study of Performance of Mutual Funds in India
Journal Name: International Journal of Research in Finance and Marketing
Abstract: This study investigates the performance of various mutual funds in India by comparing
risk and return characteristics. The research evaluates both equity and debt mutual funds across
different categories, assessing their performance using risk-adjusted return measures like Sharpe
ratio and Jensen’s alpha. The findings indicate that equity mutual funds have higher returns but
also face higher risk compared to debt funds. The study concludes that investors should consider
their risk tolerance when choosing mutual funds and emphasizes the importance of
diversification.

16. Author: A. Agarwal & B. S. Sharma (2016)

Title: Risk and Return Analysis of Mutual Funds in India
Journal Name: Journal of Financial Markets
Abstract: This study analyzes the risk-return characteristics of mutual funds in India over a 10-
year period. Using performance metrics like standard deviation, Sharpe ratio, and beta, the
authors compare both actively and passively managed funds. The results show that actively
managed equity funds outperform passive funds in terms of returns, though they are more
volatile. The paper concludes that investors should carefully assess their risk tolerance and
consider actively managed funds for higher returns, while also acknowledging the inherent risk
involved.
17. Author: S. Mishra & T. Iyer (2016)
Title: Analysis of the Performance of Sector-Specific Mutual Funds in India
Journal Name: Journal of Indian Finance
Abstract: This paper explores the performance of sector-specific mutual funds, with a focus on
funds invested in sectors like technology and energy. By using return analysis and risk metrics,
the study finds that while sector-specific funds have the potential for high returns, they also
come with considerable risk due to sectoral dependence. The paper suggests that investors
should carefully consider the volatility of these sectors before investing.

18. Author: R. Kumar & S. R. Sharma (2020)

Title: A Comparative Study of Mutual Fund Schemes and Their Impact on Portfolio Returns
Journal Name: Indian Journal of Investment Studies
Abstract: This research compares different types of mutual funds and their impact on portfolio
returns. By analyzing a range of funds, including equity, hybrid, and bond funds, the study
provides insights into how each type affects the overall portfolio. The findings suggest that
equity funds provide high returns but at a cost of increased risk, while hybrid funds provide a
balanced approach with moderate risk and return.
19. Author: S. Tiwari & N. Agarwal (2018)
Title: Mutual Funds and Investor Behavior: A Comparative Analysis of Growth vs. Dividend
Options
Journal Name: Journal of Investment Strategies
Abstract: This paper analyzes investor behavior towards mutual funds offering growth and
dividend options. Using performance analysis tools, the study evaluates the risk-return profile of
both options over a 5-year period. The findings reveal that growth options yield higher returns
over the long term, whereas dividend options provide more consistent income but with
relatively lower returns. The paper concludes by suggesting that investors should align their
investment choices with their financial goals and risk tolerance.

20. Author: S. A. Gupta & R. K. Yadav (2018)

Title: Evaluating the Role of Mutual Funds in Portfolio Diversification
Journal Name: International Journal of Portfolio Management
Abstract: This paper examines the role of mutual funds in portfolio diversification, comparing
various fund types such as equity, debt, hybrid, and index funds. The study assesses the
correlation of mutual funds with stock market returns and their effectiveness in reducing
portfolio risk. The research concludes that mutual funds significantly enhance diversification,
helping investors to manage market risks better while improving overall portfolio returns.
 CHAPTER – III
COMPANY PROILE
 CHAPTER – IV
DATA ANALYSIS
AND
INTERPRETATION
1. What is your age group?

Table 4.1: Age Group Distribution of Respondents

Options No. of Percentage

Respondents
Below 25 25 25%
25-35 30 30%
36-45 20 20%
Above 45 25 25%

Age Group Distribution of Respondents

35
30%
30
25% 25%
25
20%
20

15

10

0
Below 25 25-35 36-45 d Above 45

No. of Respondents

FIGURE 4.1: Age Group Distribution of Respondents

INTERPRETATION

The age group distribution of respondents reveals that the majority fall within the 25-35 age
bracket, making up 30% of the respondents. The next largest group is those under 25 years,
representing 25% of the sample. An equal number of respondents, 25%, are from the age groups
below 25 and above 45, indicating a balanced representation across younger and older age
segments. The group aged 36-45 constitutes 20%, making it the smallest category. This data
suggests a fairly diverse age range among the respondents, with a focus on young adults and
middle-aged individuals.
2. What is your occupation?

Table 4.2: Occupation Distribution of Respondents

Options No. of Respondents Percentage

Student 41 41%
Salaried Employee 30 30%
Business Owner 15 15%
Retired 14 14%

Occupation Distribution of Respondents

45
41%
40
35
30 30%

25
20
15 15% 14%
10
5
0
Student Salaried Employee Business Owner Retired

No. of Respondents

FIGURE 4.2: Occupation Distribution of Respondents

INTERPRETATION

The occupation distribution of respondents shows that the largest group, comprising 41%, are
students. This is followed by salaried employees, who make up 30% of the respondents.
Business owners represent 15% of the sample, while retirees account for the smallest portion,
with 14%. This indicates a significant presence of students in the survey, with a notable number
of working professionals. The smaller percentages of business owners and retirees reflect a less
dominant presence of these groups within the sample.
3. What is your annual income range?

Table 4.3: Annual Income Range of Respondents

Options No. of Respondents Percentage

Below ₹5 Lakhs 25 25%
₹5-10 Lakhs 30 30%
₹10-20 Lakhs 25 25%
Above ₹20 20 20%
Lakhs

Annual Income Range of Respondents

35
30%
30
25% 25%
25
20%
20

15

10

0
Below ₹5 Lakhs ₹5-10 Lakhs ₹10-20 Lakhs Above ₹20 Lakhs

No. of Respondents

FIGURE 4.3: Annual Income Range of Respondents

INTERPRETATION

The annual income distribution of respondents indicates that the majority earn between ₹5-10
Lakhs, accounting for 30% of the sample. The next largest group, 25%, falls in both the "Below
₹5 Lakhs" and "₹10-20 Lakhs" categories, reflecting a balanced presence of lower and middle-
income earners. The smallest group, 20%, earns above ₹20 Lakhs, suggesting a relatively
modest percentage of higher-income respondents. This income distribution portrays a sample
with a larger concentration of individuals in the middle-income range, while also capturing a
notable share of those with lower and higher earnings.
4. Are you currently investing in mutual funds?

Table 4.4: Respondents Currently Investing in Mutual Funds

Options No. of Percentage

Respondents
Yes 67 67%
No 33 33%

Respondents Currently Investing in Mutual Funds

80
70 67%

60
50
40
33%
30
20
10
0
Yes No

No. of Respondents

FIGURE 4.4: Respondents Currently Investing in Mutual Funds

INTERPRETATION

The data shows that a majority of respondents, 67%, are currently investing in mutual funds,
indicating a strong interest in this investment option. On the other hand, 33% of the respondents
are not investing in mutual funds, suggesting a significant portion of the population still remains
outside the mutual fund investment space. This distribution highlights a favorable inclination
towards mutual funds, with two-thirds of respondents actively participating in them while a third
are yet to engage in such investments.
5. If yes, which financial institution do you prefer for mutual funds?

Table 4.5: Preferred Financial Institutions for Mutual Funds

Options No. of Percentage

Respondents
ICICI Bank 45 45%
SBI 20 20%
HDFC Bank 25 25%
Others 10 10%

Preferred Financial Institutions for Mutual Funds

50
45%
45
40
35
30
25%
25
20%
20
15
10%
10
5
0
ICICI Bank SBI HDFC Bank Others

No. of Respondents

FIGURE 4.5: Preferred Financial Institutions for Mutual Funds

INTERPRETATION

Among the respondents who are investing in mutual funds, ICICI Bank emerges as the most
preferred financial institution, with 45% of respondents choosing it for their investments. SBI
follows with 20%, while 25% of respondents prefer HDFC Bank for their mutual fund
investments. A smaller segment, 10%, opts for other financial institutions. This suggests that
ICICI Bank holds a dominant position in the mutual fund space, with HDFC Bank also
maintaining a significant share, while SBI and other institutions have comparatively fewer users.
6. What type of mutual funds are you most interested in?

Table 4.6: Type of Mutual Funds Interested in by Respondents

Options No. of Respondents Percentage

Equity Funds 58 58%
Debt Funds 15 15%
Hybrid Funds 15 15%
Tax-saving Funds 12 12%

Type of Mutual Funds Interested in by Respondents

70

60 58%

50

40

30

20 15% 15% 12%

10

0
Equity Funds Debt Funds Hybrid Funds Tax-saving Funds

No. of Respondents

FIGURE 4.6: Type of Mutual Funds Interested in by Respondents

INTERPRETATION

The data reveals that the majority of respondents, 58%, are most interested in equity funds,
indicating a strong preference for higher-risk, potentially higher-return investments. Debt funds
and hybrid funds each attract 15% of the respondents, suggesting a moderate interest in safer,
more balanced investment options. Tax-saving funds are the least favored, with only 12%
expressing interest in them. This distribution highlights a dominant inclination towards equity
funds among the respondents, with a notable but smaller share opting for debt and hybrid funds.
7. What is your primary reason for investing in mutual funds?

Table 4.7: Primary Reason for Investing in Mutual Funds

Options No. of Respondents Percentage

Wealth Creation 33 33%
Tax Benefits 22 22%
Retirement 18 18%
Planning
Short-term Gains 27 27%

Primary Reason for Investing in Mutual Funds

35 33%

30 27%
25 22%
20 18%

15

10

0
Wealth Creation Tax Benefits Retirement Planning Short-term Gains

No. of Respondents

FIGURE4.7: Primary Reason for Investing in Mutual Funds

INTERPRETATION

The primary reasons for investing in mutual funds are varied among respondents. A significant
33% invest primarily for wealth creation, reflecting a long-term financial growth mindset. Tax
benefits come next, with 22% of respondents prioritizing them, indicating a keen interest in tax-
saving opportunities. Retirement planning is the focus for 18% of the respondents, suggesting
that a smaller proportion is using mutual funds as a tool for securing their future. Lastly, 27% of
respondents are motivated by short-term gains, showing that many individuals view mutual
funds as a vehicle for immediate financial returns.
8. How do you select a mutual fund scheme?

Table 4.8: Method of Selecting Mutual Fund Schemes

Options No. of Respondents Percentage

Bank Recommendation 41 41%
Past Performance 18 18%
Expert Advice 12 12%
Online Research 29 29%

Method of Selecting Mutual Fund Schemes

45
41%
40
35
30 29%

25
20 18%
15 12%
10
5
0
Bank Recommenda- Past Performance Expert Advice Online Research
tion

No. of Respondents

FIGURE 4.8: Method of Selecting Mutual Fund Schemes

INTERPRETATION

When selecting a mutual fund scheme, the majority of respondents, 41%, rely on bank
recommendations, highlighting the importance of professional guidance in their investment
decisions. A significant portion, 29%, prefers to conduct online research, reflecting a growing
trend of self-research in investment decisions. Past performance is considered by 18% of
respondents, suggesting that historical returns still influence choices, though not as strongly as
other factors. Expert advice is sought by 12% of the respondents, indicating a smaller but notable
reliance on external expertise.

9. Which factor do you consider most while choosing a mutual fund?

Table 4.9: Key Factor Considered While Choosing Mutual Funds

Options No. of Percentage

Respondents
Risk Level 25 25%
Returns 54 54%
Fund Manager’s Reputation 10 10%
Tax Benefits 11 11%

Key Factor Considered While Choosing Mutual Funds

60
54%
50

40

30 25%

20
10% 11%
10

0
Risk Level Returns Fund Manager’s Tax Benefits
Reputation

No. of Respondents

FIGURE 4.9: Key Factor Considered While Choosing Mutual Funds

INTERPRETATION

When choosing a mutual fund, the most significant factor for respondents is returns, with 54%
prioritizing potential returns above all other considerations. Risk level is the next most important
factor, with 25% of respondents considering it the most critical aspect in their decision-making
process. A smaller proportion, 11%, focuses on tax benefits, while just 10% consider the fund
manager's reputation to be the most important. This indicates that respondents predominantly
value the returns of a mutual fund, with risk and tax benefits also playing a role, though to a
lesser extent.
10. How often do you track your mutual fund investments?

Table 4.10: Frequency of Tracking Mutual Fund Investments

Options No. of Percentage

Respondents
Daily 10 10%
Weekly 15 15%
Monthly 37 37%
Rarely 38 38%

Frequency of Tracking Mutual Fund Investments

40 37% 38%
35
30
25
20
15%
15
10%
10
5
0
Daily Weekly Monthly Rarely

No. of Respondents

FIGURE 4.10: Frequency of Tracking Mutual Fund Investments

INTERPRETATION

The frequency with which respondents track their mutual fund investments shows a varied
approach. The majority, 38%, track their investments rarely, indicating that most respondents are
not actively monitoring their mutual funds on a regular basis. A significant portion, 37%, track
their investments on a monthly basis, while 15% check their mutual funds weekly. Only 10% of
respondents track their investments daily, suggesting that most investors do not feel the need for
constant monitoring. This data highlights a more passive investment style among respondents,
with the majority engaging in periodic or minimal tracking of their investments.
11. Are you aware of the mutual fund schemes offered by ICICI Bank?

Table 4.11: Awareness of Mutual Fund Schemes Offered by ICICI Bank

Options No. of Percentage

Respondents
Yes 83 83%
No 17 17%

Awareness of Mutual Fund Schemes Offered by ICICI

Bank

90 83%
80
70
60
50
40
30
20 17%
10
0
Yes No

No. of Respondents

FIGURE4.11: Awareness of Mutual Fund Schemes Offered by ICICI Bank

INTERPRETATION

The data indicates a high level of awareness regarding ICICI Bank’s mutual fund schemes, with
83% of respondents confirming their familiarity with these investment options. Meanwhile, 17%
of respondents are not aware of the mutual fund schemes offered by the bank, suggesting a need
for further outreach and marketing efforts. The strong awareness percentage reflects ICICI
Bank’s effective presence in the mutual fund market, though there remains an opportunity to
educate the remaining segment of potential investors.
12. Which mutual fund schemes from ICICI Bank have you invested in?

Table 4.12: Mutual Fund Schemes Invested in from ICICI Bank

Options No. of Respondents Percentage

ICICI Prudential Equity Fund 22 22%
ICICI Prudential Balanced Advantage Fund 11 11%
ICICI Prudential Liquid Fund 10 10%
None of the Above 57 57%
57%

Mutual Fund Schemes Invested in from ICICI Bank

60
40 22%
11% 10%
20
0

No. of Respondents

FIGURE 4.12: Mutual Fund Schemes Invested in from ICICI Bank

INTERPRETATION

The data from Table 4.12 reveals the investment preferences of respondents in mutual fund
schemes from ICICI Bank. A significant majority, 57% of respondents, have not invested in any
of the listed ICICI mutual fund schemes. Among those who have invested, the ICICI Prudential
Equity Fund is the most popular choice, attracting 22% of respondents. The ICICI Prudential
Balanced Advantage Fund follows with 11% of investors, while the ICICI Prudential Liquid
Fund has the lowest participation at 10%. This indicates that while some investors prefer ICICI
mutual funds, a larger proportion of respondents either invest in other schemes or do not
participate in mutual funds from ICICI Bank at all.
13. How would you rate ICICI Bank’s mutual fund services?

Table 4.13: Rating of ICICI Bank’s Mutual Fund Services

Options No. of Respondents Percentage

Excellen 30 30%
t
Good 50 50%
Average 12 12%
Poor 8 8%

Rating of ICICI Bank’s Mutual Fund Services

60
50%
50

40
30%
30

20
12%
10 8%

0
Excellent Good Average Poor

No. of Respondents

FIGURE 4.13: Rating of ICICI Bank’s Mutual Fund Services

INTERPRETATION

The data from Table 4.13 highlights the respondents' perception of ICICI Bank's mutual fund
services. A majority, 50% of respondents, rated the services as "Good," indicating overall
satisfaction. Additionally, 30% of respondents rated them as "Excellent," reflecting a strong
positive sentiment. Meanwhile, 12% of respondents considered the services "Average," and a
smaller portion, 8%, rated them as "Poor." This suggests that while most investors are satisfied
with ICICI Bank’s mutual fund services, there is still room for improvement to enhance
customer experience and address concerns from the less satisfied respondents.
14. What is the primary reason you chose ICICI Bank for mutual funds?

Table 4.14: Primary Reason for Choosing ICICI Bank for Mutual Funds

Options No. of Respondents Percentage

Trusted Brand 38 38%
Better Returns 22 22%
Customer Service 20 20%
Convenient Investment Process 20 20%

38%
Primary Reason for Choosing ICICI Bank for Mutual
Funds
22% 20%
40 20%
30
20
10
0
an
d ns ice ss
Br tur erv oce
d Re S Pr
te er er en
t
rus tt om
T Be st tm
Cu ves
In
e nt
ni
nve
Co

No. of Respondents

FIGURE 4.14: Primary Reason for Choosing ICICI Bank for Mutual Funds

INTERPRETATION

The data from Table 4.14 reveals the primary reasons respondents chose ICICI Bank for mutual
fund investments. The most common reason, cited by 38% of respondents, is that ICICI Bank is
a trusted brand, reflecting strong brand loyalty and reliability. Better returns attracted 22% of
investors, while both customer service and a convenient investment process were equally
important for 20% of respondents each. This indicates that while financial performance plays a
role, trust, ease of investment, and service quality are also key factors influencing investment
decisions in ICICI Bank’s mutual funds. The findings highlight that investors consider multiple
aspects before making investment decisions, and ICICI Bank’s reputation plays a significant role
in attracting customers.
15. What improvements would you suggest for ICICI Bank’s mutual fund
services?

Table 4.15: Suggested Improvements for ICICI Bank’s Mutual Fund Services

Options No. of Percentage

Respondents
Higher Returns 18 18%
More Investment Options 28 28%
Better Customer Support 27 27%
Digital Investment Process 27 27%

Suggested Improvements for ICICI Bank’s Mutual

Fund Services
30 28% 27% 27%
25
20 18%
15
10
5
0
ns s rt es
s
ur on po
t ti p oc
r R e
t Op Su tP
r
he en er en
Hi
g m om tm
st st s
ve Cu ve
In er l In
e
or Be
tt
g ita
M Di

No. of Respondents

FIGURE 4.15: Suggested Improvements for ICICI Bank’s Mutual Fund

Services

INTERPRETATION

The data from Table 4.15 highlights the suggested improvements for ICICI Bank’s mutual fund
services based on respondent feedback. The most common recommendation, given by 28% of
respondents, is the need for more investment options, indicating a demand for greater portfolio
diversity. Better customer support and a more digital investment process were each suggested by
27% of respondents, reflecting the importance of enhanced service and seamless online
transactions. Additionally, 18% of respondents emphasized the need for higher returns, showing
that financial performance remains a key concern. These findings suggest that improvements in
investment variety, customer service, and digital accessibility could enhance investor
satisfaction.

16. Compared to other banks, how do you rate ICICI Mutual Funds in terms
of returns?

Table 4.16: Comparison of ICICI Mutual Funds' Returns with Other Banks

Options No. of Respondents Percentage

Better than Others 41 41%
Same as Others 36 36%
Worse than Others 12 12%
Not Sure 11 11%

Comparison of ICICI Mutual Funds' Returns with

Other Banks
45 41%
40 36%
35
30
25
20
15 12% 11%
10
5
0
Better than Others Same as Others Worse than Others Not Sure

No. of Respondents

FIGURE 4.16: Comparison of ICICI Mutual Funds' Returns with Other

Banks

INTERPRETATION

The data from Table 4.16 presents a comparison of ICICI Mutual Funds' returns with those of
other banks based on respondent opinions. A majority, 41% of respondents, believe that ICICI
Mutual Funds offer better returns compared to other banks, indicating a positive perception of
the bank’s financial performance. Another 36% feel that ICICI Mutual Funds provide returns
similar to those of other banks, suggesting a competitive standing in the market. Meanwhile,
12% of respondents consider ICICI’s returns worse than others, and 11% are unsure about the
comparison. These findings indicate that while ICICI Mutual Funds are generally viewed
favorably, there is still a segment of investors who perceive room for improvement.

17. Which bank do you think provides better customer support for mutual
funds?

Table 4.17: Bank with Better Customer Support for Mutual Funds

Options No. of Percentage

Respondents
ICICI Bank 32 32%
SBI 23 23%
HDFC Bank 25 25%
Others 20 20%

Bank with Better Customer Support for Mutual Funds

35
32%
30
25%
25 23%
20%
20

15

10

0
ICICI Bank SBI HDFC Bank Others

No. of Respondents

FIGURE 4.17: Bank with Better Customer Support for Mutual Funds

INTERPRETATION

The data from Table 4.17 highlights respondents' opinions on which bank provides better
customer support for mutual funds. ICICI Bank leads with 32% of respondents considering its
customer support superior, indicating strong trust in its services. HDFC Bank follows with 25%,
while SBI is preferred by 23% of respondents, showing that these banks also have a significant
share of satisfied customers. Additionally, 20% of respondents believe that other banks offer
better support, suggesting that competition in customer service remains strong. These findings
indicate that while ICICI Bank is rated highest, other banks are also recognized for their service
quality, making customer support a key area for competitive advantage.

18. Which bank’s mutual funds offer the best tax-saving schemes?

Table 4.18: Best Tax-Saving Schemes Offered by Banks' Mutual Funds

Options No. of Percentage

Respondents
ICICI Bank 45 45%
SBI 25 25%
HDFC Bank 20 20%
Others 10 10%

Best Tax-Saving Schemes Offered by Banks' Mutual

Funds
50
45%
45
40
35
30
25%
25
20%
20
15
10%
10
5
0
ICICI Bank SBI HDFC Bank Others

No. of Respondents

FIGURE 4.18: Best Tax-Saving Schemes Offered by Banks' Mutual Funds

INTERPRETATION

The data from Table 4.18 highlights respondents' opinions on which bank offers the best tax-
saving mutual fund schemes. ICICI Bank leads with 45% of respondents selecting it as the best
option, indicating strong investor confidence in its tax-saving schemes. SBI follows with 25%,
while HDFC Bank is chosen by 20% of respondents, showing that these banks also have a
significant presence in this segment. Additionally, 10% of respondents believe that other banks
offer better tax-saving schemes. These findings suggest that ICICI Bank is perceived as the top
choice for tax-saving mutual funds, but competition from SBI and HDFC Bank remains strong.
19. Do you think ICICI Bank’s mutual fund advisory services are helpful?

Table 4.19: Helpfulness of ICICI Bank’s Mutual Fund Advisory Services

Options No. of Respondents Percentage

Yes, very helpful 23 23%
Somewhat helpful 41 41%
Not helpful at all 11 11%
Never used their 25 25%
services

Helpfulness of ICICI Bank’s Mutual Fund Advisory

Services

45 41%
40
35
30 25%
23%
25
20
15 11%
10
5
0
Yes, very helpful Somewhat helpful Not helpful at all Never used their
services

No. of Respondents

FIGURE 4.19: Helpfulness of ICICI Bank’s Mutual Fund Advisory Services

INTERPRETATION

The data from Table 4.19 reflects respondents' opinions on the helpfulness of ICICI Bank’s
mutual fund advisory services. A majority, 41% of respondents, find the services somewhat
helpful, indicating that while they provide value, there may be areas for improvement.
Additionally, 23% of respondents consider them very helpful, showing strong satisfaction among
a smaller group. However, 11% believe the services are not helpful at all, highlighting a need for
better advisory support. Furthermore, 25% of respondents have never used these services,
suggesting a lack of awareness or engagement. These findings indicate that while ICICI Bank’s
advisory services are generally perceived positively, increasing awareness and improving service
quality could enhance customer experience.

20. Would you recommend ICICI Bank’s mutual funds to others?

Table 4.20: Likelihood of Recommending ICICI Bank’s Mutual Funds to

Others

Options No. of Percentage

Respondents
Yes, definitely 55 55%
Maybe 25 25%
No 10 10%
Not sure 10 10%

Likelihood of Recommending ICICI Bank’s Mutual

Funds to Others

60 55%
50
40
30 25%
20 10% 10%
10
0
Yes, definitely Maybe No Not sure

No. of Respondents

FIGURE 4.20: Likelihood of Recommending ICICI Bank’s Mutual Funds to

Others

INTERPRETATION

The data from Table 4.20 shows the likelihood of respondents recommending ICICI Bank’s
mutual funds to others. A majority, 55% of respondents, would definitely recommend ICICI
Bank’s mutual funds, reflecting strong satisfaction and confidence in the bank’s offerings.
Another 25% would recommend them maybe, indicating some uncertainty or conditional
approval. However, 10% of respondents would not recommend the mutual funds, and 10% are
unsure. These results suggest that while a large portion of customers is willing to recommend
ICICI Bank’s mutual funds, there is a segment of respondents with reservations or lack of
certainty regarding their experience.

CHAPTER-V

FINDINGS

SUGGESTIONS

CONCLUSION
 FINDINGS

 CICI Bank offers a variety of mutual funds through ICICI Prudential Mutual Fund:
o Equity Funds: High risk, potentially high returns.
o Debt Funds: Lower risk, stable returns.
o Hybrid Funds: Combination of equity and debt, moderate risk and returns.
o Tax Saving Funds (ELSS): Offers tax benefits under Section 80C of the Income
Tax Act, with equity exposure.
o Liquid Funds: Short-term debt instruments, high liquidity, low risk.
o Index Funds: Passive funds, replicate a specific market index.
 Performance:
o ICICI equity funds often outperform benchmark indices like Nifty and Sensex.
o Debt funds provide steady returns, especially during low market risk periods.
o Hybrid funds balance risk and return, suitable for moderate growth and stability.
 Fees:
o Competitive expense ratios within the industry.
o Exit loads (penalties) apply if investments are redeemed within 1 to 3 years.
o Nominal transaction fees depending on the type of fund and transaction method
(online or offline).
 Risk vs. Return:
o Equity Funds: High risk, high return.
o Debt Funds: Low risk, stable returns.
o Hybrid Funds: Moderate risk, balanced returns.
 Investor Services:
o ICICI offers a user-friendly online platform for mutual fund investments via
ICICI Direct.
 o Personalized advisory services to help clients choose the best funds.
o Systematic Investment Plans (SIPs) available for regular investments, catering to
small investors.

SUGGESTIONS

1. Diversify Your Portfolio:

o Consider allocating your investments across different fund categories (equity,
debt, hybrid, liquid) based on your risk tolerance and financial goals. This will
help balance risk and return.
2. Focus on Fund Performance:
o Analyze the historical performance of ICICI mutual funds. Compare returns with
benchmark indices like Nifty, Sensex, or other industry standards. Past
performance can give insights, but remember it’s not a guarantee for future
results.
3. Review Expense Ratios:
o Pay attention to the expense ratios of the funds you are considering. Lower
expense ratios can lead to higher returns in the long run, especially for equity and
debt funds.
4. Consider Tax Efficiency:
o For tax-saving, consider ICICI’s Equity Linked Savings Schemes (ELSS). These
funds provide tax deductions under Section 80C of the Income Tax Act, making
them a good choice for long-term investors looking to reduce their taxable
income.
5. Evaluate SIPs:
o If you're a long-term investor, Systematic Investment Plans (SIPs) are a great
option. They allow you to invest small amounts regularly and benefit from rupee
cost averaging. SIPs also help in disciplining your investment approach.
6. Understand Risk Profiles:
 o Different mutual funds come with different risk levels. Equity funds are more
volatile but offer higher returns, while debt funds are less risky with stable
returns. Hybrid funds offer a middle ground. Always choose funds according to
your risk appetite.
7. Monitor Fund Manager's Track Record:
o Evaluate the performance of the fund manager. A fund's success is often
influenced by the expertise and track record of its manager. Consistently good
fund managers are likely to perform well over time.

CONCLUSION

In conclusion, ICICI Bank’s mutual funds offer a diverse range of investment options catering to
different risk profiles, financial goals, and investor preferences. The funds provided by ICICI
Bank, especially through ICICI Prudential Mutual Fund, cover categories such as equity, debt,
hybrid, liquid, and tax-saving funds (ELSS), ensuring that investors can choose products that
align with their risk tolerance and investment horizon.

ICICI’s equity funds have generally shown strong performance, often outperforming benchmark
indices, which makes them an attractive option for risk-tolerant investors seeking high returns.
Debt funds, on the other hand, offer stability and steady returns, making them suitable for
conservative investors looking for low risk. Hybrid funds strike a balance, providing a mix of
equity and debt for moderate risk and return.

The expense ratios of ICICI’s mutual funds are competitive within the industry, ensuring that
investors are not overburdened with costs, thereby maximizing returns in the long run.
Additionally, the availability of Systematic Investment Plans (SIPs) and personalized advisory
services makes mutual fund investments accessible and convenient for a wide range of investors,
whether they are new to investing or seasoned.

For tax-conscious investors, ICICI’s ELSS funds provide both tax-saving benefits under Section
80C and the potential for high returns due to their equity exposure. The tax advantages,
combined with the long-term growth potential of these funds, make them particularly attractive
for investors looking to reduce their taxable income.

Overall, ICICI Bank’s mutual fund offerings are robust and well-suited for investors with
varying financial goals. By understanding the different fund categories, evaluating performance,
and carefully considering risk and tax implications, investors can optimize their portfolios for
long-term growth and stability. Additionally, the easy-to-use platforms and professional advisory
services offered by ICICI further enhance the investment experience.

ICICI Mutual Funds are a reliable choice for investors looking to diversify their portfolios,
benefit from professional fund management, and make informed, tax-efficient investment
decisions.

BIBLIOGRAPHY
 BIBLIOGRAPHY

Books:

 Anuja Magdum, C. G. (March 2019). A Comparative Study on Mutual Fund Schemes of

Selected AMCs in India. International Journal of Trend in Scientific Research and

Development (IJTSRD).

 Arthy B, A. A. (Aug. 2015). A Study on Factors Affecting Investment in Mutual Funds

and Its Preference of Retail Investors. International Journal of Scientific and Research

Publications.

 Badri Vishal, M. (2013). A Study on Mutual Funds with Due Reference to SBI Mutual

Funds. Global Journal of Commerce and Management Perspectives.

  Deepika Sharma, P. L. (May 2011). Comparative Study of Selected Equity Diversified

Mutual Schemes. IJCSMS International Journal of Computer Science and Management

Studies.

 Dr. M. Ravichandran, A. J. (May 2017). A Study on Performance Evaluation of Mutual

Fund Schemes in India. International Journal of Advanced Education and Research.

 Dr. Nidhi Sharma, H. A. (Feb. 2019). Performance Analysis of Mutual Funds: A

Comparative Study of the Selected Hybrid Mutual Fund Schemes in India.

 Dr. Sarita Bhal, M. R. (July 2012). A Comparative Analysis of Mutual Fund Schemes in

India. International Journal of Marketing & Management Research.

 Dr. Sriprakash Soni, P. B. (April 2015). Comparative Analysis of Mutual Fund Schemes

Available in Kotak Mutual Fund and HDFC Mutual Fund. International Journal of

Research in Finance and Marketing.

 Dr. K.M. Sudha, H. D. (2020). Comparative Study on Selected Mutual Funds. JETIR.

 Ganapathi, R. (2015). Investors' Perception Towards Mutual Funds: An Empirical Study

with Reference to Coimbatore City. Journal of Management Research and Analysis.

 News papers

 Television channel

 Mutual fund hand book

 Fact sheet and statement

WEBSITES:

 www.sbimf.com

 www.moneycontrol.com

 www.amfiindia.com
  www.onlineresearchonline.com

 Www. Mutualfundsindia.com

 https://www.vnsgu.ac.in/iqac/naac/c1/c13/c134/files/
12sYFXIAO5OpbOO6X9JBXSLDSypIiR8ZC.pdf

ANNEXURE
1. What is your age group?
o a) Below 25
o b) 25-35
o c) 36-45
o d) Above 45
2. What is your occupation?
o a) Student
o b) Salaried Employee
o c) Business Owner
o d) Retired
3. What is your annual income range?
o a) Below ₹5 Lakhs
o b) ₹5-10 Lakhs
o c) ₹10-20 Lakhs
o d) Above ₹20 Lakhs
4. Are you currently investing in mutual funds?
o a) Yes
o b) No

5. If yes, which financial institution do you prefer for mutual funds?

o a) ICICI Bank
o b) SBI
 o c) HDFC Bank
o d) Others
6. What type of mutual funds are you most interested in?
o a) Equity Funds
o b) Debt Funds
o c) Hybrid Funds
o d) Tax-saving Funds
7. What is your primary reason for investing in mutual funds?
o a) Wealth Creation
o b) Tax Benefits
o c) Retirement Planning
o d) Short-term Gains
8. How do you select a mutual fund scheme?
o a) Bank Recommendation
o b) Past Performance
o c) Expert Advice
o d) Online Research
9. Which factor do you consider most while choosing a mutual fund?
o a) Risk Level
o b) Returns
o c) Fund Manager’s Reputation
o d) Tax Benefits

10. How often do you track your mutual fund investments?

a) Daily
b) Weekly
c) Monthly
d) Rarely
11.Are you aware of the mutual fund schemes offered by ICICI Bank?
a) Yes
b) No
12.Which mutual fund schemes from ICICI Bank have you invested in?
a) ICICI Prudential Equity Fund
b) ICICI Prudential Balanced Advantage Fund
c) ICICI Prudential Liquid Fund
d) None of the Above
13.How would you rate ICICI Bank’s mutual fund services?
a) Excellent
b) Good
c) Average
d) Poor
14.What is the primary reason you chose ICICI Bank for mutual funds?
a) Trusted Brand
b) Better Returns
c) Customer Service
d) Convenient Investment Process
15.What improvements would you suggest for ICICI Bank’s mutual fund services?
a) Higher Returns
b) More Investment Options
c) Better Customer Support
d) Digital Investment Process
16.Compared to other banks, how do you rate ICICI Mutual Funds in terms of returns?
a) Better than Others
b) Same as Others
c) Worse than Others
d) Not Sure
17.Which bank do you think provides better customer support for mutual funds?
a) ICICI Bank
b) SBI
c) HDFC Bank
d) Others
18.Which bank’s mutual funds offer the best tax-saving schemes?
a) ICICI Bank
b) SBI
c) HDFC Bank
d) Others
19.Do you think ICICI Bank’s mutual fund advisory services are helpful?
a) Yes, very helpful
b) Somewhat helpful
c) Not helpful at all
d) Never used their services
20.Would you recommend ICICI Bank’s mutual funds to others?
a) Yes, definitely
b) Maybe
c) No
d) Not sure