TITLE OF THE PROJECT: MUTUAL FUND

SUBMITTED BY:
NAME OF THE CANDIDATE: TANISHQ SAHA
REGISTRATION NO: 181315-21-0079
NAME OF THE COLLEGE: THE HERITAGE COLLEGE
COLLEGE UID: L180C1119

SUPERVISED BY

PROF. SOULINA BANERJEE

 Annexure- IA

Supervisor’s Certificate

This is to certify that Mr. Tanishq Saha a student of B. Com Honours in

Accounting & Finance of The Heritage College under University of Calcutta
has worked under my supervision and guidance for his project work and
prepared a project report with the title “Mutual Fund” which he is submitting, is
his genuine and original work to the best of my knowledge.

Place Signature:
Date: Name:
Designation:
Name of the college:

2
 Annexure- IB
Student’s Declaration
I hereby declare that the project work with the title ― “A COMPARATIVE
STUDY OF EQUITY LARGE CAP SCHEMES OF SELECTIVE MUTUAL
FUND AMCs IN INDIA” submitted by me for the partial fulfilment of the
degree of B.Com. Honours in Accounting & Finance under the University of
Calcutta is my original work and has not been submitted earlier to any other
University for the fulfilment of the requirement for any course of study.

I also declare that no chapter of this manuscript in whole or in part has been
incorporated in this report from any earlier work done by others or by me.
However, extracts of any literature which has been used for this report has been
duly acknowledged providing details of such literature in this reference.

Place: KOLKATA Signature:

Date:

NAME: TANISHQ SAHA

ADRESS:1/25 KANKURGACHI C.I.T.
BUILDING (ABHIJAN CLUB)
RAM KRISHNA SAMADHI ROAD
REGISTRATION NO:
181315-21-0079

3
 ACKNOWLEDGEMENT

I am thankful This dissertation examines the topic “MUTUAL FUND AND

ITS”. The report has been written as a part of the course program for
BACHELORS IN COMMERCE.

to the UNIVERSITY OF CALCUTTA, for incorporating such an exercise into

the course since it has presented me with an excellent opportunity to explore
and enjoy my analytical and report-writing skills, consequently preparing me
for my corporate future.
In addition, a special gratitude I give to our final year project supervisor, Prof.
Soulina Banerjee contribution in stimulating suggestions and encouragement
helped me to coordinate my project especially in writing this report.

Finally, I would like to express my heartfelt thanks to my parents, relatives and

friends who were a constant source of support and inspiration throughout this
project.

I am pleased to state that the whole report is just the presentation of the facts
that have been found during the project through different sources and its each
sentence is an exact representation of the information obtained and the analysis
thereof. I hope that I have manifested my sincere attempts to represent all the
information and other things to the best of my ability.

4
 INDEX
SL.NO: PARTICULARS PAGE NO:

I INTRODUCTION:
ABSTRACT 8
INTRODUCTION OF MUTUAL FUND 9
CONCEPT OF MUTUAL FUND 9
HISTORY OF MUTUAL FUND IN INDIA 10
NEED FOR STUDY 11
LITERATURE REVIEW 12-15
RESEARCH METHODOLOGY 16
II CONCEPTUAL FRAMEWORK: 17
MUTUAL FUND DEFINITION 18
TYPES OF MUTUAL FUND 19-22
HOW MUTUAL FUND WORK 22-23
MUTUAL FUND AS AN INVESTMENT OPTION 23-24
FACTORS AFFECTING MUTUAL FUND 24-25
HOW YOU GAIN FROM INVESTING IN MUTUAL FUND? 25-26
WHY INVEST IN MUTUAL FUND 26-27
ADVANTAGES OF MUTUAL FUND 28-29
DISADVANTAGES OF MUTUAL FUND 30-33
HOW DO CHOOSE MUTUAL FUND INDIA 34-38
WHAT ARE HEDGE FUND 39

5
 CHANGES INVOLVED IN MUTUAL FUND 40-41
WHO SHOULD INVEST IN MUTUAL FUND? 41-42
NATIONAL AND INTERNATIONAL SCENERIO 42-43
III PRESENTATION OF DATA, ANALYSIS AND FINDINDS
INTRODUCTION OF AXIS BLUE-CHIP FUND 45-46
V/S MIRAE ASSET LARGE CAP FUND
COMPARISON OF AXIS BLUE-CHIP FUND 47-51
V/S MIRAE ASSET LARGE CAP FUND
FINDINGS AND PRIMARY DATA 52-55
IV CONCLUSION 56
V REFERENCE 57

6
CHAPTER 1

7
 1.0. ABSTRACT
Mutual funds playing a key role in the development of India’s debt market and
have emerged as a key source of funding. Mutual funds considered as one of the
best investment options as compared to other alternatives, as low cost is the
common feature of the mutual fund. Mutual fund schemes also provide
diversified portfolio management and reducing risk and maximizing returns.
Mutual fund scheme is the most ideal investment for the common man as it
provides a professionally managed stock market and low risk with maximum
returns. The basic need and objectives of this study are to evaluate the
performance of selected debt mutual fund schemes in India and to examine the
risk and return component among these mutual funds. The present study is
based on Primary and Secondary data of two debt mutual funds launched by the
private sector companies.

Investors are advised to consider the statistical parameter to ensure the

consistent performance of the mutual fund. This study is providing some insight
into the performance of mutual fund which will help them taking rational
investment decisions and allocating their resources in the right mutual fund
schemes.

Keywords: Mutual fund performance, Debt mutual fund schemes, return, risk.

8
 1.1. INTRODUCTION OF MUTUAL FUND
Every country’s financial system consists of Financial Markets, Financial
Intermediaries, Financial Instruments. Finance is the science of money
management. Finance represents resources as funded needed for specific
activities.

When reference is made to the financial needs of an organization, the financing

is also called "funds”. “System" in the term "financial system" means a complex
or closely related group of institutions, practices, markets, transactions, claims
and obligations in the economy
There are a lot of investment avenues available today in the financial market for
an investor with an investable surplus. He can invest in Bank Deposits,
Corporate Debentures, and Bonds where there is low risk but low return. He
may invest in Stock of companies where the risk is high and the returns are also
proportionately high. The recent trends in the Stock Market have shown that an
average retail investor always lost with periodic bearish tends. People began
opting for portfolio managers with expertise in stock markets who would invest
on their behalf. Thus, we had wealth management services provided by many
institutions. However, they proved too costly for a small investor. These
investors have found a good shelter with the mutual funds.

1.2. CONCEPT OF MUTUAL FUND

A mutual fund is an investment vehicle, which pools money from investors with
common investment objectives. It then invests their money in multiple assets, in
accordance with the stated objective of the scheme. The investments are made
by an ‘asset management company’ or AMC. For example, an equity fund
would invest in stocks and equity-related instruments, while a debt fund would
invest in bonds, debentures, etc.
As an investor, you put your money in financial assets like stocks and
bonds. You can do so by either buying them directly or using investment
vehicles like mutual funds.

9
 1.3. HISTORY OF MUTUAL FUNDS IN INDIA

Mutual funds in India have come a long way since 1964 when the Unit Trust of
India was the only player.

By the end of 1988, UTI had total assets worth Rs 6,700 crore. Soon after, eight
funds were established by banks, LIC and GIC between 1987 and 1993. The
total number of schemes went up to 167 and total money invested – measured
by Assets under Management (AUM) – shot up to over Rs 61,000 crore.
In 1993, private and foreign players entered the industry, marking the third
phase. The first entrant was Kothari Pioneer Mutual fund, which launched in
association with a foreign fund.
The Securities and Exchange Board of India (SEBI) formulated the Mutual
Fund Regulation in 1996, which, for the first time, established a comprehensive
regulatory framework for the mutual fund industry. Since then, several mutual
funds have been set up by the private and joint sectors.
Currently there are around 45 mutual fund organizations in India together
handling assets worth nearly Rs 10 lakh crore. Today, the Indian mutual fund
industry has opened up many exciting investment opportunities for investors.
As a result, we have started witnessing the phenomenon of savings now being
entrusted to the funds rather than in banks alone. Mutual Funds are now perhaps
one of the most sought-after investment options for most investors.
As financial markets become more sophisticated and complex, investors need a
financial intermediary who can provide the required knowledge and
professional expertise on taking informed decisions. Mutual funds act as this
intermediary.

10
1.4. 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 prospects. It also helps in understanding
different schemes of mutual funds. Because my study depends upon prominent
funds in India and their schemes like equity, income, balance as well as the
returns associated with those schemes. The project study was done to ascertain
the asset allocation, entry load, exit load, associated with the mutual funds.
Ultimately this would help in understanding the benefits of mutual funds to
investors.

OBJECTIVE:
• To give a brief idea about the benefits available from Mutual Fund investment.
• To give an idea of the types of schemes available.
• To discuss about the market trends of Mutual Fund investment.
• To study some of the mutual fund schemes.
• To study some mutual fund companies and their funds.
• Observe the fund management process of mutual funds.
11
• Explore the recent developments in the mutual funds in India.
• To give an idea about the regulations of mutual funds.

LIMITATIONS:
• The lack of information sources for the analysis part.
• Though I tried to collect some primary data but they were too inadequate for
the purposes of the study.
• Time and money are critical factors limiting this study.
• The data provided by the prospects may not be 100% correct as they too have
their limitations.
• The study is limited to selected mutual fund schemes.

1.5. LITERATURE REVIEW

A literature review is a text of a scholarly paper, which includes the current

knowledge including substantive findings, as well as theoretical and
methodological contributions to a particular topic. Literature reviews are
secondary sources for a research work.

12
SERIAL AUTHOR YEAR TITLE OBJECTIVES FINDINGS/CONCLUSION
AND RESEARCH
NO:
METHODOLOGY
1. Yashas 2017 “A study on To know which The researcher found which
vi, R. performance schemes, give scheme was doing in a
Rajpara evaluation highest return in better way.
of selected India. To examine He also concluded that
Debt Mutual the risk and return people are gaining interest
Funds in component among to invest in debt mutual
India. these mutual funds. He also concluded
funds. To evaluate those rational investors are
and compare the more interested in debt
performance of funds rather than the other
debt mutual fund funds.
schemes of
selected
companies.
Secondary data of
top five asset
management
companies were
taken into
consideration.
NAVs, ranking
and return was
used to compare
various schemes.
2. Gurinder 2016 “Investigation The purpose of this This report analysed the
Singh of the study is to access perception of investors and
and Determinants the factors which non-investors towards
resist common Indian stock market. People

13
Navneet to Augment man in India from generally do not invest in
Kaur
Investment investing in stock stock market because of
in the Indian market and ways lack of knowledge and risk
Stock to overcome such of loss of money. Many
Market.” hesitations with the respondents feel that
sole motive to advertisement is the best
induce investment way to enhance financial
in Indian stock literacy and motivate people
market. Primary as to invest more in Indian
well as secondary stock market. Launch of
data were used and investor friendly equity
the tool SPSS schemes will also help
20was used. boost investment in stock
Hypothesis testing market.
was used by the
surveying
method.

14
3. Poonam 2017 “Performance To understand the Most of the investors like to
Devi and perception of invest in mutual funds.
Analytical investors towards Most of the people like to
study of mutual funds, to invest their money for one
various know the or three years to get returns
mutual expectation of on their investments. People
funds.” people for the invest in mutual funds to
return on mutual get higher returns and tax
funds. benefits.
Various data
interpretation
methods and
presentation
methods were
used.
Mostly, primary
data was used by
the researcher.

15
 RESEARCH METHODOLOGY

To construct this project, two types of data are used which are primary and
secondary data.
Primary data is the one which is collected specifically for the purpose of the
project with the help of a questionnaire prepared.
Secondary data refers to the statistical material which is not originated by the
investigator himself but obtained from another source which might be someone
else’s records, websites, newspapers, magazines, etc. However, it plays a
significant role in this project.
For this study, Mirae Asset Large Cap Fund and Axis Blue-chip Fund Direct
Plan have been taken for comparison.
Secondary data has been obtained from various documents, such as reports
containing benchmark, risk exposure, expense ratio, sector allocation etc.

16
CHAPTER 2

17
 2.1. DEFINATION OF MUTUAL FUND
A mutual fund is a professionally-managed investment scheme, usually run by
an asset management company that brings together a group of people and
invests their money in stocks, bonds and other securities.
-THE ECONOMIC TIMES 10TH JULY 2021 EDITION
A mutual fund is an open-end professionally managed investment fund that
pools money from many investors to purchase securities. Mutual funds are "the
largest proportion of equity of U.S. corporations."[1]:2 Mutual fund investors
may be retail or institutional in nature. The term is typically used in the United
States, Canada, and India, while similar structures across the globe include the
SICAV in Europe ('investment company with variable capital') and open-ended
investment company (OEIC) in the UK.
-WIKIPEDIA

18
 2.2. TYPES OF MUTUAL FUND SCHEMES
MUTUAL FUND SCHEME CLASSIFICATION
Mutual funds come in many varieties, designed to meet different investor goals.
Mutual funds can be broadly classified based on –
• Organisation Structure – Open ended, Close ended, Interval
• Management of Portfolio – Actively or Passively
• Investment Objective – Growth, Income, Liquidity
• Underlying Portfolio – Equity, Debt, Hybrid, Money market instruments,
Multi Asset
• Thematic / solution oriented – Tax saving, Retirement benefit, Child
welfare, Arbitrage
• Exchange Traded Funds
• Overseas funds
• Fund of funds
SCHEME CLASSIFICATION BY ORGANIZATION STRUCTURE
• Open-ended schemes are perpetual, and open for subscription and repurchase
on a continuous basis on all business days at the current NAV.
• Close-ended schemes have a fixed maturity date. The units are issued at the
time of the initial offer and redeemed only on maturity. The units of close-ended
schemes are mandatorily listed to provide exit route before maturity and can be
sold/traded on the stock exchanges.
• Interval schemes allow purchase and redemption during specified transaction
periods (intervals). The transaction period has to be for a minimum of 2 days
and there should be at least a 15-day gap between two transaction periods. The
units of interval schemes are also mandatorily listed on the stock exchanges.

SCHEME CLASSIFICATION BY PORTFOLIO MANAGEMENT

Active Funds
In an Active Fund, the Fund Manager is ‘Active’ in deciding whether to Buy,
Hold, or Sell the underlying securities and in stock selection. Active funds adopt
different strategies and styles to create and manage the portfolio.

19
 • The investment strategy and style are described upfront in the Scheme
Information document (offer document)
• Active funds expect to generate better returns (alpha) than the benchmark
index.
• The risk and return in the fund will depend upon the strategy adopted.
• Active funds implement strategies to ‘select’ the stocks for the portfolio.
Passive Funds
Passive Funds hold a portfolio that replicates a stated Index or Benchmark e.g. –
• Index Funds
• Exchange Traded Funds (ETFs)
In a Passive Fund, the fund manager has a passive role, as the stock selection /
Buy, Hold, Sell decision is driven by the Benchmark Index and the fund
manager / dealer merely needs to replicate the same with minimal tracking
error.
ACTIVE V/S PASSIVE FUNDS
Active Fund –
• Rely on professional fund managers who manage investments.
• Aim to outperform Benchmark Index
• Suited for investors who wish to take advantage of fund managers' alpha
generation potential.
Passive Funds –
• Investment holdings mirror and closely track a benchmark index, e.g.,
Index Funds or Exchange Traded Funds (ETFs)
• Suited for investors who want to allocate exactly as per market index.
• Lower Expense ratio hence lower costs to investors and better liquidity
CLASSIFICATION BY INVESTMENT OBJECTIVES
Mutual funds offer products that cater to the different investment objectives of
the investors such as –
a. Capital Appreciation (Growth)
b. Capital Preservation

20
 c. Regular Income
d. Liquidity
e. Tax-Saving
Mutual funds also offer investment plans, such as Growth and Dividend
options, to help tailor the investment to the investors’ needs.
GROWTH FUNDS
• Growth Funds are schemes that are designed to provide capital
appreciation.
• Primarily invest in growth-oriented assets, such as equity
• Investment in growth-oriented funds require a medium to long-term
investment horizon.
• Historically, Equity as an asset class has outperformed most other kind of
investments held over the long term. However, returns from Growth
funds tend to be volatile over the short-term since the prices of the
underlying equity shares may change.
• Hence investors must be able to take volatility in the returns in the short-
term.
INCOME FUNDS
• The objective of Income Funds is to provide regular and steady income to
investors.
• Income funds invest in fixed income securities such as Corporate Bonds,
Debentures and Government securities.
• The fund’s return is from the interest income earned on these investments
as well as capital gains from any change in the value of the securities.
• The fund will distribute the income provided the portfolio generates the
required returns. There is no guarantee of income.
• The returns will depend upon the tenor and credit quality of the securities
held.
LIQUID / OVERNIGHT /MONEY MARKET MUTUAL FUNDS
• Liquid Schemes, Overnight Funds and Money market mutual fund are
investment options for investors seeking liquidity and principal
protection, with commensurate returns.

21
 – The funds invest in money market instruments* with maturities not
exceeding 91 days.
– The return from the funds will depend upon the short-term interest rate
prevalent in the market.
• These are ideal for investors who wish to park their surplus funds for
short periods.
– Investors who use these funds for longer holding periods may be
sacrificing better returns possible from products suitable for a longer
holding period.

* Money Market Instruments includes commercial papers, commercial

bills, treasury bills, Government securities having an unexpired maturity
up to one year, call or notice money, certificate of deposit, usance bills,
and any other like instruments as specified by the Reserve Bank of India
from time to time.
CLASSIFICATION BY INVESTMENT PORTFOLIO
• Mutual fund products can be classified based on their underlying
portfolio composition
– The first level of categorization will be on the basis of the asset class
the fund invests in, such as equity / debt / money market instruments or
gold.
– The second level of categorization is on the basis of strategies and
styles used to create the portfolio, such as, Income fund, Dynamic Bond
Fund, Infrastructure fund, Large-cap/Mid-cap/Small-cap Equity fund,
Value fund, etc.
– The portfolio composition flows out of the investment objectives of the
scheme.

22
 2.3. HOW MUTUAL FUNDS WORK

A mutual fund allows investors to pools money with a common investment

objective. It then invests the money in various asset classes based on the
scheme’s objectives.
As an investor, you put your money in financial assets like stock, bonds and
other securities. You can either buy them directly or use investment instruments
like mutual funds. Mutual funds have certain advantages over direct
investments. For example, maybe you lack the skill to understand market trends
yourself, or do not have the time to follow the market closely. Mutual funds are
a great alternative in this case as they are managed by professionals. But how do
mutual funds work? Here is a handy guide to what you should know.
2.4. MUTUAL FUND AS AN INVESTMENT OPTION
A mutual fund is an investment vehicle that pools money from investors with a
common investment objective. It then invests the money in various asset classes
like equities and bonds based on the scheme’s objectives. An asset management
company (AMC) makes these investments on behalf of the investors. The team
that manages a mutual fund picks the stocks which investors’ money will be put
into based on clearly defined investment objectives.

23
 MUTUAL FUND INVESTMENT VIA SIP
A systematic investment plan (SIP) for mutual funds makes it easy to invest in a
disciplined way. The SIP option is similar to opening a recurring deposit (RD)
with a bank. Like in the RD, your SIP will deduct a fixed amount from your
bank at specified intervals—usually every month.
there is a key difference. The RD pays a fixed interest on your investment. The
returns from your mutual fund SIP, however, depend on the net asset value
(NAV) of the mutual fund scheme. The NAV represents the current market
value of the underlying securities, and it fluctuates daily.
A mutual fund SIP brings certain advantages to the investor:
• There is no need to worry about making lump-sum payments. You can
invest small, manageable amounts every month.
• The regular and systematic approach builds discipline among investors.
Once you place a standing instruction for auto-debit, the SIP investment
will take place automatically.
• Since the NAV fluctuates, your investment buys a different number of
units with each instalment. This has the potential to lower the average
cost of investment over time, thus maximising your returns.
2.5. FACTORS AFFECTING MUTUAL FUNDS
You need to be aware of several factors and terms when investing in a mutual
fund:
• NET ASSET VALUE:
The overall cost of a mutual fund depends on the price per fund unit, which is
known as the net asset value (NAV). The NAV helps you understand how a
specific mutual fund scheme is performing. Mutual funds invest in the securities
market. The market value of securities changes every day. So, the NAV of a
scheme also changes every day. (Read more: What is NAV?))
• ASSETS UNDER MANAGEMENT:
Mutual funds buy assets using the money they collect from investors. These
assets include stocks, bonds, and other securities. The total value of all the
assets that a mutual fund buys is called assets under management (AUM).
• FUND MANAGERS:

24
These are experts with real-time access to crucial market information. Fund
managers execute trades on the largest and most cost-effective scale. These
managers are full-time, high-level investment professionals. They monitor the
companies in which the mutual funds they manage have invested.
• INVESTMENT OBJECTIVE:
Investors invest in financial instruments to achieve a particular objective. This
could be to increase wealth, accumulate money, or simply to protect money
from inflation. Similarly, every mutual fund has a goal which it aims to achieve
on behalf of investors. This goal or investment objective of the mutual fund
could be capital appreciation—profits—in the long term, or distributing regular
fixed income as dividends.
2.6. HOW YOU GAIN FROM INVESTING IN MUTUAL FUNDS
Mutual funds help you achieve your financial goals in a number of ways:
• POWER OF COMPOUNDING:
Mutual funds harness the power of compounding. Compounding is the interest
that you earn on interest. Hence, the value of your investment keeps growing at
an ever-increasing rate. Over time, compounding can lead to a significant
increase in the value of your investment.
• DIVERSIFICATION:
Diversification is a key benefit of investing in mutual fund. It is the practice of
investing in different types of securities or asset classes. Not every asset moves
in tandem; while some rise, others fall. So, when you own both the stocks in
your portfolio, any losses from one are cancelled out by the gains in the other.
Thus, diversification reduces your overall risk.
• CAPITAL GAINS DISTRIBUTIONS:
Mutual funds distribute the profits made from selling some of their underlying
assets at higher values. This is called capital gains distribution. You can use this
to buy more mutual fund units (reinvestment).
• AUTOMATIC REINVESTMENT:
A mutual fund gives returns in two ways—dividends and an increase in value.
An increase in value can be utilised only when you sell the mutual fund units.
Dividends, on the other hand, are accessible as soon as they are distributed. You
can use the dividend amount to buy more units of the mutual fund scheme
automatically. Mutual fund dividends are tax-free for investors. However,

25
mutual funds are taxed for distributing dividends. This is mainly applicable to
debt mutual funds, not equity funds.
• FUND SWITCH/MUTUAL FUNDS EXCHANGE PRIVILEGE:
Many fund houses group a set of mutual funds together based on their
investment objectives or other factors like management. You have the option to
transfer your investment within a family of funds from one scheme to another.
This is called a fund switch or exchange privilege.
• TRANSPARENCY:
It is important that your money is in safe hands. SEBI regulations have made
the mutual funds industry quite transparent. This allows you to track your
mutual fund investments at all times. AMCs are mandated to deliver regular
updates to investors on how the funds are faring.
• VARIETY:
They say not to put all your eggs in one basket. This is true for investing as
well. Mutual fund schemes invest in a whole range of industries and sectors,
different asset types, and more. The schemes may focus on blue-chip stocks,
technology stocks, bonds, or a mix of stocks and bonds, for example. Expect to
be spoilt for choice.
• LIQUIDITY:
Open-ended mutual funds allow investors to redeem their units at any time at
the prevailing NAV. So mutual funds are highly liquid, which is beneficial for
investors.

2.7. WHY INVEST IN MUTUAL FUND?

• As investment goals vary from person to person – post-retirement
expenses, money for children’s education or marriage, house purchase,
etc. – the investment products required to achieve these goals too vary.
Mutual funds provide certain distinct advantages over investing in
individual securities. Mutual funds offer multiple choices for investment
across equity shares, corporate bonds, government securities, and money
market instruments, providing an excellent avenue for retail investors to
participate and benefit from the uptrends in capital markets. The main
advantages are that you can invest in a variety of securities for a

26
 relatively low cost and leave the investment decisions to a professional
manager.
• A mutual fund enables you to participate in a diversified portfolio for as
little as Rs 5000, and sometimes even lesser. And with a no-load fund,
you pay little or no sales charges to own them. For example, some bonds
and fixed deposits have a minimum investment amount of Rs 25,000.
Instead, you can give your money to a mutual fund, which will in turn
invest in the bonds and fixed deposits. This could be done for as little as
Rs 1000.
• Investing in mutual funds has its own convenience. You save up on
additional paper-work that comes with every transaction, the amount of
energy you invest in researching for the stocks, as well as actual market-
monitoring and conduction of transactions. With a mutual fund, you don’t
have to do any of that.
• Simply go online or place an order with your broker to buy a mutual
fund. Another big advantage is that you can move your funds easily from
one fund to another, within a mutual fund family. This allows you to
easily rebalance your portfolio to respond to significant fund management
or economic changes.
•
• RETURN RISK MATRIX
HIGHER RISK HIGHER RISK
MODERATE RETURNS HIGHER RETURNS

VENTURE CAPITAL EQUITY

BANK F/D MUTUAL FUND
POSTAL SAVINGS

LOWER RISK LOWER RISK

LOWER RETURNS HIGHER RETURNS

27
 2.8. ADVANTAGES OF MUTUAL FUND

1. Professional Management — Investors may not have the time or the

required knowledge and resources to conduct their research and purchase
individual stocks or bonds. A mutual fund is managed by full-time, professional
money managers who have the expertise, experience and resources to actively
buy, sell, and monitor investments. A fund manager continuously monitors
investments and rebalances the portfolio accordingly to meet the scheme’s
objectives. Portfolio management by professional fund managers is one of the
most important advantages of a mutual fund.
2. Risk Diversification — Buying shares in a mutual fund is an easy way to
diversify your investments across many securities and asset categories such as
equity, debt and gold, which helps in spreading the risk - so you won't have all
your eggs in one basket. This proves to be beneficial when an underlying
security of a given mutual fund scheme experiences market headwinds. With
diversification, the risk associated with one asset class is countered by the
others. Even if one investment in the portfolio decreases in value, other
investments may not be impacted and may even increase in value. In other

28
words, you don’t lose out on the entire value of your investment if a particular
component of your portfolio goes through a turbulent period. Thus, risk
diversification is one of the most prominent advantages of investing in mutual
funds.
3. Affordability & Convenience (Invest Small Amounts) — For many
investors, it could be more costly to directly purchase all of the individual
securities held by a single mutual fund. By contrast, the minimum initial
investments for most mutual funds are more affordable.
4. Liquidity — You can easily redeem (liquidate) units of open-ended mutual
fund schemes to meet your financial needs on any business day (when the stock
markets and/or banks are open), so you have easy access to your money. Upon
redemption, the redemption amount is credited in your bank account within one
day to 3-4 days, depending upon the type of scheme e.g., in respect of Liquid
Funds and Overnight Funds, the redemption amount is paid out the next
business day.
However, please note that units of close-ended mutual fund schemes can be
redeemed only on maturity. Likewise, units of ELSS have a 3-year lock-in
period and can be liquidated only thereafter.
5. Low Cost — An important advantage of mutual funds is their low cost. Due
to huge economies of scale, mutual funds schemes have a low expense ratio.
Expense ratio represents the annual fund operating expenses of a scheme,
expressed as a percentage of the fund’s daily net assets. Operating expenses of a
scheme are administration, management, advertising related expenses, etc. The
limits of expense ratio for various types of schemes have been specified under
Regulation 52 of SEBI Mutual Fund Regulations, 1996.
6. Well-Regulated — Mutual Funds are regulated by the capital markets
regulator, Securities and Exchange Board of India (SEBI) under SEBI (Mutual
Funds) Regulations, 1996. SEBI has laid down stringent rules and regulations
keeping investor protection, transparency with appropriate risk mitigation
framework and fair valuation principles.
7. Tax Benefits —Investment in ELSS up-to ₹1,50,000 qualifies for tax benefit
under section 80C of the Income Tax Act, 1961. Mutual Fund investments when
held for a longer term are tax efficient.

29
 2.9. DISADVANTAGES/ RISK FACTORS OF MUTAL FUND

STANDARD RISK FACTORS

• Mutual Fund Schemes are not guaranteed or assured return products.
• Investment in Mutual Fund Units involves investment risks such as
trading volumes, settlement risk, liquidity risk, default risk including the
possible loss of principal.
• As the price / value / interest rates of the securities in which the Scheme
invests fluctuates, the value of investment in a mutual fund Scheme may
go up or down.
• In addition to the factors that affect the value of individual investments in
the Scheme, the NAV of the Scheme may fluctuate with movements in
the broader equity and bond markets and may be influenced by factors
affecting capital and money markets in general, such as, but not limited
to, changes in interest rates, currency exchange rates, changes in
Government policies, taxation, political, economic or other developments
and increased volatility in the stock and bond markets.
• Past performance does not guarantee future performance of any Mutual
Fund Scheme.

30
SPECIFIC RISK FACTORS
RISKS ASSOCIATED WITH INVESTMENTS IN EQUITIES
• Risk of losing money:
Investments in equity and equity related instruments involve a degree of risk
and investors should not invest in the equity schemes unless they can afford to
take the risk of possible loss of principal.
• Price Risk:
Equity shares and equity related instruments are volatile and prone to price
fluctuations on a daily basis.
• Liquidity Risk for listed securities:
The liquidity of investments made in the equities may be restricted by trading
volumes and settlement periods. Settlement periods may be extended
significantly by unforeseen circumstances. While securities that are listed on the
stock exchange carry lower liquidity risk, the ability to sell these investments is
limited by the overall trading volume on the stock exchanges. The inability of a
mutual fund to sell securities held in the portfolio could result in potential losses
to the scheme, should there be a subsequent decline in the value of securities
held in the scheme portfolio and may thus lead to the fund incurring losses till
the security is finally sold.
• Event Risk:
Price risk due to company or sector specific event.
RISKS ASSOCIATED WITH INVESTMENT IN DEBT SECURITIES AND
MONEY MARKET INSTRUMENTS
Debt Securities are subject to the risk of an issuer’s inability to meet principal
and interest payments on the obligation (Credit Risk) on the due date(s) and
may also be subject to price volatility due to such factors as interest rate
sensitivity, market perception of the creditworthiness of the issuer and general
market liquidity (Market Risk).
The timing of transactions in debt obligations, which will often depend on the
timing of the Purchases and Redemptions in the Scheme, may result in capital
appreciation or depreciation because the value of debt obligations generally
varies inversely with the prevailing interest rates.

31
• Interest Rate Risk
Market value of fixed income securities is generally inversely related to interest
rate movement. Generally, when interest rates rise, prices of existing fixed
income securities fall and when interest rates drop, such prices increase.
Accordingly, value of a scheme portfolio may fall if the market interest rate
rises and may appreciate when the market interest rate comes down. The extent
of fall or rise in the prices depends upon the coupon and maturity of the
security. It also depends upon the yield level at which the security is being
traded.
• Credit Risk
This is risk associated with default on interest and /or principal amounts by
issuers of fixed income securities. In case of a default, scheme may not fully
receive the due amounts and NAV of the scheme may fall to the extent of
default. Even when there is no default, the price of a security may change with
expected changes in the credit rating of the issuer. It may be mentioned here
that a government security is a sovereign security and is safer. Corporate bonds
carry a higher amount of credit risk than government securities. Within
corporate bonds also there are different levels of safety and a bond rated higher
by a rating agency is safer than a bond rated lower by the same rating agency.
• Spread Risk
Credit spreads on corporate bonds may change with varying market conditions.
Market value of debt securities in portfolio may depreciate if the credit spreads
widen and vice versa. Similarly, in case of floating rate securities, if the spreads
over the benchmark security / index widen, then the value of such securities
may depreciate.
• Liquidity Risk
Liquidity risk refers to the ease with which securities can be sold at or near its
valuation yield-to-maturity (YTM) or true value. Liquidity condition in market
varies from time to time. The liquidity of a bond may change, depending on
market conditions leading to changes in the liquidity premium attached to the
price of the bond. In an environment of tight liquidity, necessity to sell
securities may have higher than usual impact cost. Further, liquidity of any
particular security in portfolio may lessen depending on market condition,
requiring higher discount at the time of selling.
The primary measure of liquidity risk is the spread between the bid price and
the offer price quoted by a dealer. Trading volumes, settlement periods and

32
transfer procedures may restrict the liquidity of some of these investments.
Different segments of the Indian financial markets have different settlement
periods, and such periods may be extended significantly by unforeseen
circumstances. Further, delays in settlement could result in temporary periods
when a portion of the assets of the Scheme are not invested and no return is
earned thereon or the Scheme may miss attractive investment opportunities.
At the time of selling the security, the security may become illiquid, leading to
loss in value of the portfolio. The purchase price and subsequent valuation of
restricted and illiquid securities may reflect a discount, which may be
significant, from the market price of comparable securities for which a liquid
market exists.
• Counterparty Risk
This is the risk of failure of the counterparty to a transaction to deliver securities
against consideration received or to pay consideration against securities
delivered, in full or in part or as per the agreed specification. There could be
losses to the fund in case of a counterparty default.
• Prepayment Risk
This arises when the borrower pays off the loan sooner than the due date. This
may result in a change in the yield and tenor for the mutual fund scheme. When
interest rates decline, borrowers tend to pay off high interest loans with money
borrowed at a lower interest rate, which shortens the average maturity of Asset-
backed securities (ABS). However, there is some prepayment risk even if
interest rates rise, such as when an owner pays off a mortgage when the house is
sold or an auto loan is paid off when the car is sold. Since prepayment risk
increases when interest rates decline, this also introduces reinvestment risk,
which is the risk that the principal may only be reinvested at a lower rate.
• Re-investment Risk
Investments in fixed income securities carry re-investment risk as the interest
rates prevailing on the coupon payment or maturity dates may differ from the
original coupon of the bond (the purchase yield of the security). This may result
in final realized yield to be lower than that expected at the time
The additional income from reinvestment is the "interest on interest"
component. There may be a risk that the rate at which interim cash flows can be
reinvested are lower than that originally assumed.

33
 2.10. HOW TO CHOOSE MUTUAL FUNDS IN INDIA

Mutual fund selection can be done on several parameters like return

expectation, risk tolerance, investment horizon, etc. on the investor’s part. The
asset can be mapped across parameters like an expense ratio, past performance,
fund manager experience, assets under management, etc. once you are through
with your research, you will have a clear idea of where you would want to
invest in.
Here are the key aspects to consider while selecting the right mutual fund to
invest in: -
Goals
When you invest in a Mutual Fund, your goal in terms of target date, time frame
and a return expectation should be the starting point. In the absence of a clearly
defined goal, you might be tempted to stop, exit or forget about your
investment.
Invest in direct mutual funds
• Enjoy 0% commission
• SIP starting at ₹500
A goal can be short term like purchasing utility goods, down payment for a
house or international holiday or long term like retirement or providing for
college education of children.

34
Depending upon why you are investing in the given mutual fund, you will be
able to rightly select the mutual fund type- debt mutual fund, equity mutual
fund, hybrid mutual fund. For example, for some investors the main investment
objective is to gain capital appreciation on their investments, for others, it may
be tax saving. Depending upon what you are looking forward to, your fund
selection will vary.
You can separate out your short-term goals and long-term goals and then select
the right funds based on the time horizon to take a call.
Risk
Risk comes from not knowing what you are getting into’. Before choosing a
mutual fund, the investor should analyse the risk associated with the investment
and if it aligns with the investor’s own risk profile.
Equity Mutual Fund investments are subject to volatility and thus the portfolio
might see ups and downs in the short term. Although, the returns can be
substantially higher than other types of funds. These might be suitable for
aggressive investors with a reasonably long-time frame.
Debt Mutual Fund, on the other hand are more stable, but give lower returns
than equity funds. These might be suitable for conservative investors. You can
follow the table below to understand the category you fall into based on the time
horizon and your risk profile, to select the appropriate mutual fund for yourself.

35
Liquidity
Primarily, an investor should be able to ascertain as to when is the invested
corpus needed.
If the money is needed in the near future, it should not be invested in equity
mutual funds.
The money that can be put aside for a reasonably long period of time without
worrying much about the market ups and downs should only be committed
towards equity mutual funds. This is also important because compounding
works best when money is left untouched for long periods of time. Hence, if
you want to raise money for a short period, go for Liquid Funds.
Investment Strategy
Most investors ignore this aspect of investing in mutual funds but it holds a
crucial place in the success of your investment portfolio. Investment strategy
also referred to as the investment approach is the approach that the fund house
adopts to make all the investments and holdings in the scheme. If the investment
strategy of the fund house is not in line with your investment philosophy, then a
conflict of interest will arise out of the investment ultimately leading to you
selling out your investments at undesirable prices.
Fund Performance
Fund performance matters, but not from a short-term perspective of 6 – 12
months or even one or two years. It should be considered for a reasonable time
frame. This is to ensure that the fund investments have gone through multiple
market cycles and the returns have been consistent. In case the fund has not
been able to beat its benchmark over three, five, seven or ten years, it is
reasonable to believe that the fund might not be a good investment in the future
as well. While evaluating a fund’s performance, it is important to check the
performance details of the fund Manager or the fund management team. A
strong, stable, experienced Fund management team with reasonable tenure and
proven track record would prove beneficial for investors.
Expense Ratio
The Expense Ratio is the commission or the fee charged from the investors for
the proper management of their investments. It is basically the fund manager’s
fee that is levied upon all investors for ensuring profits across the investments.
As an investor, you must target mutual funds that have a lower expense ratio as
the percentage may seem quite small but when it will be calculated across your

36
total investment portfolio, it will have a deep impact. The expense ratio is a
derivative of Assets under Management and it is believed that the higher the
AUM, the lower the expense ratio.
Entry And Exit Load
Entry load refers to the fee charged by fund houses from investors to start
investing in their mutual fund scheme. Exit load refers to the fee charged by
fund houses from investors upon exiting the mutual fund scheme. The entry
load has however been removed by most fund houses; the exit load still
remains. There might be some conditions prevalent to exit load although like
exit load will be levied only if the investor withdraws from the mutual scheme
before a set limit.
As an investor, you must look out for mutual fund schemes that have zero or
minimal entry and exit load.
Taxes
Tax consideration is an aspect investor should look into carefully before
investing in a mutual fund. As an investment vehicle, mutual funds are quite
efficient in terms of post-tax returns. When equity fund units are redeemed, the
returns so generated are taxed according to the period of holding and the
applicable tax rate.
For equity funds, Long Term Capital Gains (holding period of 12 months and
above) are taxed at 10% over and above the exemption limit of 1 Lakh.
Short Term Capital Gains (holding period of less than 12 months) are taxed at
15%.
For Debt funds, indexation benefit is available for capital gains realized.
(For these funds, a holding period of 36 months or more is considered as long
term. Any holding period which is less than 36 months is treated as short term
and the gains are added to the income of investors for tax calculation). So, take
the tax aspects of the fund category you are looking to invest in before you take
a call.
Direct Plans
There are two types of plans available for a mutual fund scheme-direct and
regular. Direct and regular Mutual Funds are different versions of the same
plan, wherein investors can directly buy required NAV units from a concerned
asset management company in the first case, while the units have to be

37
purchased through a commissioner or broker in case of the latter. A key
difference between direct Mutual Funds and regular funds is that higher returns
are usually generated in a direct Mutual Fund as no expenses are incurred as
brokerage fees.
This commission varies between 1-1.25%, depending upon the asset
management company and brokerage firm. In case of regular Mutual Funds, the
concerned Asset Management Company (AMC) pays commission to the
brokerage firm for increasing their clientele. This reduces the principal amount
of investment, thereby reducing total returns generated. Needless to say, when
we compare the expense ratios of direct mutual funds with that of regular funds,
it is lower in case of the former as direct mutual funds do not have associated
costs of brokerage.
Earlier when mutual funds were just introduced in India, going the regular route
made sense due to lack of educational resources around the subject. However,
now there are many platforms that offer you the necessary resources to make
investment decisions by yourself and hence you need not be dependent on
agents for advice and lose money on commissions.
TO SUM UP
Selecting a mutual fund is crucial to the overall success of your investment
portfolio and achieving set objectives and goals. With so many options at hand,
it is certain to get confused and land up in a tricky situation. Hence, keeping all
the relevant factors in mind and mapping the target investment across them
before making the final decision is the right move.

38
 2.11. WHAT ARE HEDGE FUNDS
While reading up about mutual funds, you may hear about hedge funds. They
are quite similar to mutual funds as they are an investment vehicle too. They too
pool money from investors, and then invest on their behalf in different
securities. That’s where their similarities end.

Here are some differences between mutual funds and hedge funds.

39
 2.12. CHARGES INVOLVED IN MUTUAL FUND

A mutual fund would provide you, professionals, to take care of your

investment. These professionals shall be having experience in the industry and
their main task is to generate a return on the investment.
All these services are available at a small fee which gets deducted from the
investment. The charges generally vary from 1-3% and this is calculated on the
investment every year.
So, if you have invested 500000 Rs and the charges are 2%, 10,000 Rs would be
deducted, and if in next year the value increases to 650000 Rs than 13000
would be deducted from the fund.
This would a summation advisory and administrative cost. In case sales
personnel is involved in he would be also paid from this only and there
wouldn’t be any additional or separate charges for the same.
A mutual fund shall charge also penalty in case the funds are withdrawal before
1 year, that’s generally is 1% of fund value. Early withdrawal also calls for
short term capital gains tax. The idea of charges is to keep you invested for a
long time.
The charges can be classified under mentioned heads
a) Entry Load
The charges that are levied when you initially invest in mutual funds. At present
Mutual Funds cannot charge entry load.
b) Exit Load

40
These are the charges which you need to pay while making redemption of your
UNITS. It has changed a lot over the period and currently if you would like to
exit before 1 year, you need to pay an exit load of 1%.
c) Fund management charges
These are the charges that AMC charges to manage the fund and meeting day to
day expense. These depend on a number of factors like AUM (asset under
manage), types of schemes, etc. Generally, equity funds charge high as compare
to debt and money market funds.
2.13. WHO SHOULD INVEST IN MUTUAL FUND?

Everyone having financial goals should have exposure to mutual funds. The
goal can be short, medium, or long term, there is a mutual fund for all types of
goal. Mutual funds help in achieving goals faster.

41
There is a mutual fund that suits all kinds of investors. There is a mutual fund
available for high-risk seekers and no seekers, there are funds available for large
investors and for small investors.
You need to assess your risk profile and time horizon. For example, if you are
risk-averse and planning for child higher education in the next three years, then
you should consider investing in debt funds. If your goal is distant far and you
can take risks also you should go for equity-like for Retirement.

4.14. NATIONAL & INTERNATIONAL SCENARIO

Average Assets Under Management (AAUM) of Indian Mutual Fund Industry

for the month of April 2021 stood at ₹ 32,42,537 crore.
Assets Under Management (AUM) of Indian Mutual Fund Industry as on April
30, 2021 stood at ₹32,37,985 crore.
The AUM of the Indian MF Industry has grown from ₹ 7.85 trillion as on April
30, 2011 to ₹32.38 trillion as on April 30, 2021 more than 4-fold increase in a
span of 10 years.
The MF Industry’s AUM has grown from ₹ 14.22 trillion as on April 30, 2016
to ₹32.38 trillion as on April 30, 2021, more than 2-fold increase in a span of 5
years.

42
The Industry’s AUM had crossed the milestone of ₹10 Trillion (₹10 Lakh
Crore) for the first time in May 2014 and in a short span of about three years,
the AUM size had increased more than two folds and crossed ₹ 20 trillion (₹20
Lakh Crore) for the first time in August 2017. The AUM size crossed ₹ 30
trillion (₹30 Lakh Crore) for the first time in November 2020. The Industry
AUM stood at ₹32.38 Trillion (₹ 32.38 Lakh Crore) as on April 30, 2021.
While the number of mutual funds registered the U.S. has remained stable at
around 8,000 for the last two decades, however the assets under management of
U.S mutual funds has more than tripled over this time, breaking the 20 trillion
U.S. dollar barrier in 2019. As of 2019, 46.4 percent of American households
owned mutual funds, with this figure not changing significantly since 2000.
Accordingly, almost twice the amount of U.S. household wealth being held in
mutual funds rather than bank accounts - a very different picture to Europe and
Japan, where many times more household wealth is held in bank accounts.
The total number of accounts (or folios as per mutual fund parlance) as on April
30, 2021 stood at 9.86 crore (98.6 million), while the number of folios under
Equity, Hybrid and Solution Oriented Schemes, wherein the maximum
investment is from retail segment stood at about 8.25 crore (82.5 million).
As mutual funds involve a third party managing the funds invested into the
market, using a mutual fund creates additional costs on investors. Costs
therefore constitute an important aspect of the mutual fund industry, as they
influence the value of an investor’s return. The expense ratio of equity mutual
funds in the United States varied noticeably depending on the fund management
style. In the case of actively managed equity funds, it was equal to 0.74 percent
in 2019, while for the passively managed equity funds the expense ratio
amounted to only 0.07 percent. Lower costs are the most popular reason
investors choose to invest in exchange traded funds (ETFs), the most common
type of passively managed equity fund.

43
CHAPTER 3

44
 3.1. INTRODUCTION ON AXIS BLUE-CHIP FUND
V/S MIRAE ASSET LARGE CAP FUND
After doing Research using Google, we can find that Axis Blue-chip Fund and
Mirae Asset Large Cap Fund are in the Top 10 Mutual Fund Companies of
India as on July, 2021. So, a comparison and a case study on these two large cap
Equity funds has been made below.

❖ AXIS BLUE-CHIP FUND

Axis Blue-chip Fund is an Equity Mutual Fund Scheme launched by Axis
Mutual Fund. This scheme was made available to investors on January 1 2013.
Shreyash Devalkar is the Current Fund Manager of Axis Blue-chip Fund Direct
Plan Growth Fund. The fund currently has an Asset Under Management of
₹25,183 Cr and the latest NAV as of June 8th 2021 is ₹45.63.
The Axis Blue-chip Fund Direct Plan Growth is rated very high risk. Minimum
SIP investment is set to 500. Minimum Lumpsum Investment is 5000. For units
in excess of 10% of the investment, 1% will be charged for redemption within
12 months.
As the name suggests, Axis Blue-chip Fund Growth invests in blue-chip stocks
or stocks of predominantly large companies, which are financially sound, and
well established. The stocks are less volatile than mid-cap and small-cap stocks,
traded frequently, and have adequate liquidity as a result. The stocks that the
Axis Blue-chip fund intends to invest in have the potential to perform long-term
due to their proven track record.
Investment Objective
The scheme aims to generate long term capital growth by investing in a
diversified portfolio predominantly consisting of equity and equity related
instruments of large cap companies.
Axis Blue Chip Fund-Direct Growth, being an equity fund, is suitable for
investors aiming for long term capital appreciation, ideally with an investment
horizon of more than 5 years. There is no lock-in period in this fund, however.
Tax Implications
Returns are taxed at 15%, if one redeems it before one year. After one year, one
is required to pay LTCG tax of 10% on returns of 1 lakh plus in a financial year.

45
 ❖ MIRAE ASSET LARGE CAP FUND
Mirae Asset Large Cap fund is an open-ended equity scheme predominantly
investing across large cap stock launched by Mirae Asset Mutual Fund on 4th
April, 2008. Mr. Gaurav Misra and Mr. Harshad Borawake is the Current Fund
Manager of Mirae Asset Large Cap Fund. The fund currently has an Asset
Under Management (AUM) of ₹25,721 Cr and the latest NAV as on 9th
July,2021 is ₹71.5930.
The Mirae Asset Large Cap fund is rated very High Risk. Minimum SIP
Investment is set to ₹1000. Minimum Lumpsum Investment is 5000. Exit load is
1% if redeemed within 1 year.
Mirae Asset Large Cap Fund aims to allocate more than 80% of the net assets
under management towards top 100 large-cap companies and may allocate up-to
20% assets towards high potential mid-cap funds. The stock selection strategy is
sector and theme agnostic. Mirae Asset Large Cap Fund Direct Growth aims to
invest in companies which are sector leaders with strong competitive advantage
for an extended period to achieve the investment objectives.
Investment Objective
The scheme aims to maximize long term capital appreciation by finding
investment opportunities resulting from Indian Economic Growth and its
structural shifts through investing in equity and equity related securities.
Tax Implications
Returns are taxed at 15%, if you redeem before one year. After 1 year, you are
required to pay LTCG Tax of 10% on returns of Rs. 1 Lakh+ in a financial year.

46
 3.2. COMPARISON ON AXIS BLUE-CHIP FUND
V/S MIRAE ASSET LARGE CAP FUND

❖ 1 YEAR NAV GRAPH OF AXIS BLUE-CHIP FUND

V/S MIRAE ASSET LARGE CAP FUND

❖ 3 YEARS NAV GRAPH OF AXIS BLUE-CHIP FUND

V/S MIRAE ASSET LARGE CAP FUND

47
❖ 5 YEARS NAV GRAPH OF AXIS BLUE-CHIP FUND
V/S MIRAE ASSET LARGE CAP FUND

RETURNS

RETURNS MIRAE ASSET AXIS BLUE-CHIP

LARGE CAP FUND FUND

48
 ❖ FUND DETAILS OF AXIS BLUE-CHIP FUND
V/S MIRAE ASSET LARGE CAP FUND

FUND DETAILS MIRAE ASSET LARGE AXIS BLUE- CHIP

CAP FUND

PROS & CONS MIRAE ASSET AXIS BLUE-CHIP

LARGE CAP FUND

49
 HOLDING ANALYSIS
HOLDING MIRAE ASSET AXIS BLUE-CHIP
ANALYSIS LARGE CAP FUND

TOP HOLDINGS
MIRAE ASSET LARGE AXIS BLUE-CHIP FUND
CAP

50
 FUND MANAGER MIRAE ASSET AXIS BLUE-CHIP
LARGE CAP FUND

ABOUT FUND MIRAE ASSET AXIS BLUE-CHIP

LARGE CAP FUND

51
 3.3. FINDINGS
PRIMARY DATA
1. ARE YOU INTERESTED IN MUTUAL FUND?
Column1

YES NO

2. DO YOU THINK MUTUAL FUND AS A FRAUD?

Column1

YES NO

52
3. HAVE YOU INVESTED IN MUTUAL FUND?
MUTUAL FUND

YES NO PLANNING TO INVEST NOT INTERESTED

4. WHAT KIND OF INVESTMENT DO YOU PREFER THE MOST?

Chart Title
45%

40%

35%

30%

25%

20%

15%

10%

5%

0%
Category 1

SAVINGS A/C FIXED DEPOSITS SHARES MUTUAL FUND

53
5. WHILE INVESTING YOUR MONEY WHICH FACTOR YOU
PREFER THE MOST?
MUTUAL FUND
40%

35%

30%

25%

20%

15%

10%

5%

0%
MUTUAL FUND

LIQUIDITY RISK HIGH RETURN COMPANY REPUTATION

6. HOW DO YOU COME TO KNOW ABOUT MUTUAL FUND?

MUTUAL FUND

ADVERTISEMENT PEER GROUP BANK FINANCIAL ADVISORY

54
7. WHICH FEATURE OF THE MUTUAL FUND ALLOW YOU MOST?
MUTUAL FUND

DIVERSIFICATION BETTER RETURN REGULAR INCOME TAX BENEFIT

8. WHERE FROM YOU PURCHASE MUTUAL FUND?

MUTUAL FUND

DIRECTLY FROM AMCS BROKERS ONLINE APPS OTHER

55
 4. CONCLUSION
Mutual Funds now represent perhaps most appropriate investment opportunity
for most investors. As financial markets become more sophisticated and
complex, investors need a financial intermediary who provides the required
knowledge and professional expertise on successful investing. As the investors
always try to maximize the returns and minimize the risk.
Mutual fund satisfies these requirements by providing attractive returns with
affordable risks.
The fund industry has already overtaken the banking industry, more funds being
under mutual funds management than deposited with bank. With the emergence
of tough competition in this sector mutual funds are launching a variety of
schemes which caters to the requirement of the particular class of investors.
Risk takers for getting capital appreciation should invest in growth, equity
schemes. Investors who need regular income should invest in income plans.
The stock market has been rising for over a period of time. This in turn has not
only protected the money invested in funds but also to help grow these
investments. This has also instilled greater confidence among fund investors
who are investing more into the market through the MF route more than ever
before.
By comparing the above-mentioned schemes, I came to know the risk and
return relation between the specified. Therefore, investors before investing in
Equity schemes should study the risk and return relation. And if the risk and
return is been matched with their planning, the only the investors should go for
Equity schemes.

56
 5. REFERRENCES
WEBSITES
www.moneycontrol.com
www.groww.in
www.economictimes.indiatimes.in
www.amfiindia.com
www.mutualfundsindia.com
www.sebi.gov.in
www.rbi.gov.in

BOOKS AND JOURNALS

Mutual Funds in India- H. Sadhak
Growth and Performance of Mutual Funds- G.S. Batra
Mutual Funds- M.S. Panigrahi
Growth, Performance and Prospects- Jaspal Singh
Mutual Funds: Growth, Performance and Prospects- Madan Gopal

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