Comparative Performance of Mutual Fund With Reference of Listed Companies in Bse

COMPARATIVE PERFORMANCE OF MUTUAL FUND WITH REFERENCE OF LISTED
COMPANIES IN BSE
A first review report
Submitted by:
NAME:
P.SURESH
ROLL NUMBER:
1314MBA1192
REGISTER NUMBER: 68613200048
NEED FOR THE STUDY:

The main purpose of doing this project was to know about mutual fund and its functioning. This
helps to know in details about mutual fund industry right from its inception stage, growth and
future prospect.
To know the risk and return associated with mutual fund.
To chose best company for mutual investment between HDFC and ICICI
REVIEW OF THE LITERATURE:
Bhaskar Biswas, (2013), investigated out performance and under performance of diversified
funds. It involved studying the performance of some ten best and ten worst performing
diversified equity mutual funds for the period of last three years (2009 -2012). In this paper of
selected diversified equity funds have been analyzed by analyzing their arithmetic mean return,
risk can be analyzed by standard deviation , beta measures market sensitivity, alpha measures
the risk return relationship and Sharpe ratio measures the risk premium of portfolio.
Literature on mutual fund performance evaluation is enormous. A few research studies that
haveinfluenced the preparation of this paper substantially are discussed in this section.Sharpe,
William F. (1966) suggested a measure for the evaluation of portfolio performance.Drawing on
results obtained in the field of portfolio analysis, economist Jack L. Treynor hassuggested a new
predictor of mutual fund performance, one that differs from virtually all thoseused previously by
incorporating the volatility of a fund's return in a simple yet meaningfulmanner.Michael C.
Jensen (1967) derived a risk-adjusted measure of portfolio performance (Jensensalpha) that
estimates how much a managers forecasting ability contributes to funds returns. Asindicated by
Statman (2000), the e SDAR of a fund portfolio is the excess return of the portfolioover the
return of the benchmark index, where the portfolio is leveraged to have the benchmark indexs
standard deviation
S.Narayan Rao , et. al., evaluated performance of Indian mutual funds in a bear market
throughrelative performance index, risk-return analysis, Treynors ratio, Sharpes ratio,
Sharpesmeasure , Jensens measure, and Famas measure. The study used 269 open-ended
schemes (outof total schemes of 433) for computing relative performance index. Then after
excluding fundswhose returns are less than risk-free returns, 58 schemes are finally used for
further analysis. Theresults of performance measures suggest that most of mutual fund
schemes in the sample of 58were able to satisfy investors expectations by giving excess
returns over expected returns basedon both premium for systematic risk and total risk. Bijan
Roy, et. al., conducted an empiricalstudy on conditional performance of Indian mutual funds.
This paper uses a technique calledconditional performance evaluation on a sample of eightynine Indian mutual fund schemes .This paper measures the performance of various mutual
funds with both unconditional and conditionalform of CAPM, Treynor- Mazuy model and
Henriksson-Merton model. The effect of incorporating lagged information variables into the
evaluation of mutual fund managers performance is examined in the Indian context. The results
suggest that the use of conditioninglagged information variables improves the performance of
mutual fund schemes, causing alphasto shift towards right and reducing the number of negative
timing coefficients. Mishra, et al.,(2002) measured mutual fund performance using lower partial
moment. In this paper, measuresof evaluating portfolio performance based on lower partial
moment are developed. Risk from thelower partial moment is measured by taking into account
only those states in which return is below a pre-specified target rate like risk-free rate. Kshama
Fernandes(2003) evaluated indexfund implementation in India. In this paper, tracking error of
index funds in India is measured.The consistency and level of tracking errors obtained by some
well-run index fund suggests thatit is possible to attain low levels of tracking error under Indian
conditions. At the same time,there do seem to be periods where certain index funds appear to
depart from the discipline of indexation. K. Pendaraki et al. studied construction of mutual fund
portfolios, developed a multi-criteria methodology and applied it to the Greek market of equity
mutual funds. Themethodology is based on the combination of discrete and continuous multicriteria decision aidmethods for mutual fund selection and composition. UTADIS multi-criteria
decision aid methodis employed in order to develop mutual funds performance models. Goal
programming model isemployed to determine proportion of selected mutual funds in the final
portfolios.
PRIMARY OBJECTIVE:
To study on the comparative performance of mutual fund with reference of listed companies
in BSE
SECONDARY OBJECTIVES:
To find NAV (net asstet value) of the selected fund.
To give brief idea about the benefit available from mutual fund investment.
To give an idea of the types of schemes available
To suggest the best fund find for the investor.
To know how many peoples are satisfied by their investment (HDFC or ICICI
METHODOLOGY:
It is the way to systematically solve a problem. The methodology adopted in this study is
explained below: Research Design
A. Problem Defining:
In a competitive situation with multiple mutual funds operating in
Indian market, it is necessary to know about the performance of different mutual
funds as the performance of mutual fund decides about the future of Mutual Fund
Company. In this study my focus is upon performance of investors regarding
HDFC &ICICI. This is my problem to be studied for research.
B. Literature Survey:
I have used newspapers, magazines related to business & finance
& apart from websites.
C. Type of research:
The research is qualitative & descriptive in nature. Qualitative
research is that talk about the quality of the subject to be researched and
Descriptive research is one that describes things as exists in present.
D. Data collection Design:

I. Sources of data =
Primary Sources I have used questionnaire as primary
source for collecting data for my study.
Secondary sources I had collected my secondary data from
websites & journals.
II. Sampling =
It represents whole population. It is the processes of choosing a

sample from whole population .I have choose a sample of high class &
middle class people who have invested in mutual funds as a sample.
III. Tools =
I have used some charts (Pie chart, column chart, cylinder chart,
cone chart) and hypothesis tests (chi-square one sample T- test etc.)
IV. Sampling Size =

It represents that how many candidates youve chosen to be filled
up your questionnaire or candidates upon whom you can study. I had
chosen sample of 100 candidates.
V. Sampling Techniques =
Deliberate &
Convenience Sampling.
VI. Data Interpretation =
Data interpretation is that in which we analysis the whole
collected data & tries to give it in simple words to be understandable.
WORK DONE SO FAR:
In my research I have founded following things.
Invester have more faith HDFC mutual fund.
As the age increases investers are much satisfied, see more risk & become more risk
adverse.
Old people and windows prefer lower risk.
Investors are not highly satisfied by company rules & employee behavior
Investors think that HDFC provides better returns than ICICI
Work completed till the first review must be highlighted.
WORK TO BE DONE:
The company should advertise their tax savings plane more so that they can gain more
customers.
Some customer is asking to make it investors friendly.
LIMITATIONS:
There are some limitations of my study, those are as Following:Sample limitation: - which sample is taken by me is very small in
Size to Compare mutual fund of two companies.
Reliability: - The data collected by me is not much reliable because many investors
chosen by me have invested in HDFC.
Parameters: - All the parameters have not been taken.
Time limitation: - I had the shortage of time because of that I was not able to do my
study in a good manner.
Awareness: - Investors chosen for study are not fully aware of all the terms
and conditions related to mutual fund .So, it is very difficult
EXPECTED DELIVERABLES
To conclude we can say that mutual fund is a very much profitable tool for investment because
of its low cost of acquiring fund, tax benefit, and diversification of profits & reduction of risk.
Many investors who have invested in mutual fund have invested with HDFC and them also
thinks that it provides better returns than ICICI .There is also an affect of age on mutual fund
investors like; old people & widows want regular returns than capital appreciation. Companies
can adopt new techniques to attract more & more investors. In my study I was
suppose to do comparative analyses the mutual fund of HDFC &ICICI and I had found that
people consider HDFC better than ICICI. But ICICI have also respondents and it can increase
its investors by improving itself in some terms.
To conclude we can say mutual fund is a best investment vehicle for old & widow, as well
as to those who want regular returns on their investment.
Mutual fund is also better and preferable for those who want their capital appreciation.
Both the companies are doing considerable achievements in mutual fund industry.
There are also so many competitors involved those affects on both companies.
REFERENCES
1. The list of journal papers reviewed must be documented as per the format sent
in the guidelines earlier.

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COMPARATIVE PERFORMANCE OF MUTUAL FUND WITH REFERENCE OF LISTED

REGISTER NUMBER: 68613200048

NEED FOR THE STUDY:

D. Data collection Design:

It represents whole population. It is the processes of choosing a

IV. Sampling Size =

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