1.1.

ABOUT THE STUDY

The role of mutual funds has started to gain more momentum in a world of uncertain
finances and it proves to be a dependable source of investment . This is quite evident from
the significant investments that has been made in mutual funds in India..A mutual fund is a
professionally managed investment fund that pools money from many investors to purchase
securities. These investors may be retail or institutional in nature. Mutual funds have
advantages and disadvantages compared to direct investing in individual securities.
A mutual fund is a type of financial vehicle made up of a pool of money collected from many
investors to invest in securities such as stocks, bonds, money market instruments, and other
assets. Mutual funds are operated by professional money managers, who allocate the fund's
assets and attempt to produce capital gains or income for the fund's investors. A mutual
fund's portfolio is structured and maintained to match the investment objectives stated in its
prospectus.
Mutual funds give small or individual investors access to professionally managed portfolios
of equities, bonds and other securities. Each shareholder, therefore, participates
proportionally in the gains or losses of the fund. Mutual funds invest in a vast number of
securities, and performance is usually tracked as the change in the total market cap of the
fund—derived by the aggregating performance of the underlying investments.
Mutual funds pool money from the investing public and use that money to buy other
securities, usually stocks and bonds. The value of the mutual fund company depends on the
performance of the securities it decides to buy. So, when you buy a unit or share of a mutual
fund, you are buying the performance of its portfolio or more precisely, a part of the
portfolio's value.
That's why the price of a mutual fund share is referred to as the net asset value (NAV) per
share, sometimes expressed as NAVPS. A fund's NAV is derived by dividing the total value of
the securities in the portfolio by the total amount of shares outstanding. Outstanding shares
are those held by all shareholders, institutional investors, and company officers or insiders.
Mutual fund shares can typically be purchased or redeemed as needed at the fund's current
NAV, which unlike a stock price doesn't fluctuate during market hours, but is settled at the
end of each trading day.
The average mutual fund holds hundreds of different securities, which means mutual fund
shareholders gain important diversification at a low price. Consider an investor who buys
only Google stock before the company has a bad quarter. He stands to lose a great deal of
value because all of his dollars are tied to one company. On the other hand, a different
investor may buy shares of a mutual fund that happens to own some Google stock. When
Google has a bad quarter, she only loses a fraction as much because Google is just a small
part of the fund's portfolio.
Types of Mutual Funds

Mutual funds are divided into several kinds of categories, representing the kinds of securities
they have targeted for their portfolios and the type of returns they seek.
 Equity Funds
The largest category is that of equity or stock funds. As the name implies, this sort of
fund invests principally in stocks. Within this group is various sub-categories. Some
equity funds are named for the size of the companies they invest in small-, mid- or
large-cap. Others are named by their investment approach: aggressive growth,
income-oriented, value, and others. Equity funds are also categorized by whether they
invest in domestic (U.S.) stocks or foreign equities.
(A) Growth Fund
A growth fund is a diversified portfolio of stocks that has capital appreciation as its
primary goal, with little or no dividend payouts. The portfolio mainly consists of
companies with above-average growth that reinvest their earnings into expansion,
acquisitions and/or research and development (R&D). Most growth funds offer higher
potential capital appreciation but usually at above-average risk.

(B) Dividend Mutual Fund

Dividend mutual funds are stock mutual funds that primarily invest in companies that
pay dividends, which are profits that companies share with stock shareholders.Dividends
can be received as a source of income or they can be used to buy more shares of the
mutual fund. Most investors who buy dividend mutual funds are usually looking for a
source of income, which is to say that the investor would like steady and reliable
payments from their mutual fund investment.

(C) Dividend Re-investment

The dividend reinvestment option is quite different. Dividends that would otherwise be
paid out to investors in the fund are used to purchase more shares in the fund. Again,
cash is not paid out to the investor when dividends are paid on the stocks in the fund.
Instead, cash is automatically used by the fund's administrators to buy more fund units
on behalf of the investors and transfer them to individual investors' accounts. This
method increases the number of shares owned over time and typically results in the
account growing in value at a faster rate than if dividends were not reinvested. Many
investment companies offer this service to shareholders at no cost.Investors realize a
capital gain upon the sale of their units in the fund, which in the case of the dividend
reinvestment option will probably be more fund units than they started with.

 Debt Fund
A debt fund is an investment pool, such as a mutual fund or exchange-traded fund, in
which core holdings are fixed income investments. A debt fund may invest in short-term
or long-term bonds, securitized products, money market instruments or floating
rate debt. The fee ratios on debt funds are usually lower, on average, than equity
funds because the overall management costs are lower.

 Index Fund
An index fund is a type of mutual fund with a portfolio constructed to match or track
the components of a financial market index, such as the Standard & Poor's 500
Index (S&P 500). An index mutual fund is said to provide broad market exposure, low
operating expenses and low portfolio turnover. These funds follow their benchmark
index no matter what the state of the markets is.
Index funds are generally considered ideal core portfolio holdings for retirement
accounts, such as individual retirement accounts (IRAs) and 401(k) accounts.
Legendary investor Warren Buffett has recommended index funds as a safe haven for
savings for the sunset years Rather than try to pick out individual stocks, he has said,
it makes more sense for the average investor to buy all of the companies of the S&P
500 at the low cost an index fund offers.
 Sector Fund
A sector fund is a fund that invests solely in businesses that operate in a particular
industry or sector of the economy. Sector funds are commonly structured as mutual
funds or exchange-traded funds (ETFs).
 1.2 INDUSTRY PROFILE
MUTUAL FUND AN INVESTMENT PLATFORM

Mutual fund is an investment company that pools money from small investors and invests in
a variety of securities, such as stocks, bonds and money market instruments. Most open-end
Mutual funds stand ready to buy back (redeem) its shares at their current net asset value,
which depends on the total market value of the fund's investment portfolio at the time of
redemption. Most open-end Mutual funds continuously offer new shares to investors. It is
also known as an open-end investment company, to differentiate it from a closed-end
investment company.

Mutual funds invest pooled cash of many investors to meet the fund's stated investment
objective. Mutual funds stand ready to sell and redeem their shares at any time at the fund’s
current net asset value: total fund assets divided by shares outstanding. Mutual funds invest
pooled cash of many investors to meet the fund's stated investment objective. Mutual funds
stand ready to sell and redeem their shares at any time at the fund’s current net asset value:
total fund assets divided by shares outstanding.

In Simple Words, Mutual fund is a mechanism for pooling the resources by issuing units to
the investors and investing funds in securities in accordance with objectives as disclosed in
offer document.

Investments in securities are spread across a wide cross-section of industries and sectors and
thus the risk is reduced. Diversification reduces the risk because not all stocks may move in
the same direction in the same proportion at the same time. Mutual fund issues unitst o the
investors in accordance with quantum of money invested by them.

Investors of Mutual fund are known as unit holders. The profits or losses are shared by the
investors in proportion to their investments. The Mutual funds normally come out with a
number of schemes with different investment objectives which are launched from time to
time.

In India, A Mutual fund is required to be registered with Securities and Exchange Board of
India (SEBI) which regulates securities markets before it can collect funds from the public.
In Short ,a Mutual fund is a common pool of money in to which investors with common
investment objective place their contributions that are to be invested in accordance with the
state d investment objective of the scheme. The investment manager would invest the money
collected from the investor in to assets that are defined/ permitted by the stated objective of
the scheme. For example, an equity fund would invest equity and equity related instruments
and a debt fund would invest in bonds, debentures, gilts etc. Mutual fund is a suitable
investment for the common man as it offers an Opportunity to invest in a diversified,
professionally managed basket of securities at a relatively low cost.

CATEGORIES OF MUTUAL FUND

1.BASED ON THEIR STURCTURE

 OPEN ENDED FUNDS
 CLOSE ENDED FUND
2 BASED ON INVESTMENT OBJECTIVE
 BALANCED EQUITY FUNDS
 EQUITY FUNDS
 DEBT FUNDS
 LIQUID FUNDS
 INDEX FUNDS
 ELSS
 DIVIDEND YEILD
 DIVIDEND REINVESTMENT
 GILT FUNDS
 INCOME FUNDS
 DIVERSIFIED THEMATIC FUND
 FMPS FUNDS
 SECTOR FUND
 FLOATING RATE
 ARBITRAGE FUNDS
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 a 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:

1. Index funds- In this case a key stock market index, like BSE Sensex or Nifty is tracked.
Their portfolio mirrors the benchmark index in terms of both composition and individual
stock weightages.

2. Equity diversified funds- 100% of the capital is invested in equities spreading across
different sectors and stocks.

3. Dividend yield funds- it is similar to the equity-diversified funds except that they invest in
companies offering high dividend yields.

4. 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.

5. Sector funds- Invest 100% of the capital in a specific sector. e.g. - A banking sector fund
will invest in banking stocks.

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

➢Balanced fund :Their investment portfolio includes both debt and equity.
As a result, the risk-return ladder, they fall between equity and debt funds.
Balanced funds are the idealmutual 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.

1. Liquid funds- These funds invest 100% in money market instruments, a large portion
being invested in call money market.

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

3. Floating rate funds - Invest in short-term debt papers. Floaters invest in debt instruments,
which have variable coupon rate.
4. Arbitrage fund- They generate income through arbitrage opportunities due to miss-
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.

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

6. Income funds LT- Typically, such funds invest a major portion of the portfolio in long-
term debt papers.

7. MIPs- Monthly Income Plans have an exposure of 70%-90% to debt and an exposure of
10%-30% to equities.

8. 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 post-dated 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.

ORGANISATION OF MUTUAL FUND

THE STRUCTURE CONSISTS OF:

SPONSOR

Sponsor is the person who acting alone or in combination with another body corporate
establishes a mutual fund. Sponsor must contribute at least 40% of the net worth of the
Investment managed and meet the eligibility criteria prescribed under the Securities and
Exchange Board of India (Mutual Fund) Regulations, 1996. The sponsor is not responsible or
liable for any loss or shortfall resulting from the operation of the Schemes beyond the initial
contribution made by it towards setting up of the Mutual Fund.

TRUST

The Mutual Fund is constituted as a trust in accordance with the provisions of the Indian
Trusts Act, 1882 by the Sponsor. The trust deed is registered under the Indian Registration
Act, 1908.

TRUSTEE

Trustee is usually a company (corporate body) or a Board of Trustees (body of individuals).

The main responsibility of the Trustee is to safeguard the interest of the unit holders and
ensure that the AMC functions in the interest of investors and in accordance with the
Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, the provisions of
the Trust Deed and the Offer Documents of the respective Schemes. At least 2/3rd directors
of the Trustee are independent directors who are not associated with the Sponsor in any
manner.

ASSET MANAGEMENT COMPANY (AMC)

The AMC is appointed by the Trustee as the Investment Manager of the Mutual Fund. The
AMC is required to be approved by the Securities and Exchange Board of India (SEBI) to act
as an asset management company of the Mutual Fund. At least 50% of the directors of the
AMC are independent directors who are not associated with the Sponsor in any manner. The
AMC must have a net worth of at least 10 cores at all times.

REGISTRAR AND TRANSFER AGENT

The AMC if so authorized by the Trust Deed appoints the Registrar and Transfer Agent to the
Mutual Fund. The Registrar processes the application form, redemption requests and
dispatches account statements to the unit holders. The Registrar and Transfer agent also
handles communications with investors and updates investor records.

DISTRIBUTION CHANNELS:

Mutual funds posses a very strong distribution channel so that the ultimate customers doesn’t
Face any difficulty in the final procurement. The various parties involved in distribution of
mutual funds are:

Direct marketing by the AMCs: the forms could be obtained from the AMCs directly. The
investors can approach to the AMCs for the forms. some of the top AMCs of India are;
Reliance ,Birla Sunlife, Tata, SBI magnum, Kotak Mahindra, HDFC, Sundaram, ICICI,
Mirae Assets, CanaraRobeco, Lotus India, LIC, UTI etc. whereas foreign AMCs include:
Standard Chartered, Franklin Templeton, Fidelity, JP Morgan, HSBC, DSP Merill Lynch, etc.
1. Broker/ sub broker arrangements: the AMCs can simultaneously go for broker/sub-
broker to popularize their funds. AMCs can enjoy the advantage of large network of
to these brokers ans sub-brokers.

2. Individual agents, Banks, NBFC: investors can procure the funds through
individualagents, independent brokers, banks and several non- banking financial
corporations too,whichever he finds convenient for him.

PURPOSE OF MEASURING AND EVALUATING

Every investor investing in the mutual funds is driven by the motto of either wealth creation
or wealth increment or both. Therefore it’s very necessary to continuously evaluate the funds’
performance with the help of factsheets and newsletters, websites, newspapers and
professional advisors like HDFC AMC. If the investors ignore the evaluation of funds’
performance then he can lose hold of it any time. In this ever-changing industry, he can face
any of the following problems:
1.Variation in the funds’ performance due to change in its management/
objective.
2.The funds’ performance can slip in comparison to similar funds.
3. There may be an increase in the various costs associated with the fund.
4 .Beta, a technical measure of the risk associated may also surge.
5. The funds’ ratings may go down in the various lists published by
independent rating agencies.
6. It can merge into another fund or could be acquired by another fund
house.

Performance measures:

Equity funds: the performance of equity funds can be measured on the

basis of: NAV Growth, Total Return; Total Return with Reinvestment at
NAV, Annualized Returns and Distributions, Computing Total Return (Per
Share Income and Expenses, Per Share Capital Changes, Ratios, Shares
Outstanding), the Expense Ratio, Portfolio Turnover Rate, Fund Size,
Transaction Costs, Cash Flow, Leverage.

Debt fund: Likewise, the performance of debt funds can be measured on

the basis of: Peer Group Comparisons, The Income Ratio, Industry
Exposures and Concentrations, NPAs, besides NAV Growth, Total Return
and Expense Ratio.

Liquid funds: the performance of the highly volatile liquid funds can be
measured on the basis of: Fund Yield, besides NAV Growth, Total Return
and Expense Ratio.

Concept of benchmarking for performance evaluation:

Every fund sets its benchmark according to its investment objective. The funds performance
is measured in comparison with the benchmark. If the fund generates a greater return than the
benchmark then it is said that the fund has outperformed benchmark , if it is equal to
benchmark then the correlation between them is exactly 1. And if in case the return is lower
than the benchmark then the fund is said to be underperformed.

Some of the benchmarks are:

1. Equity funds: market indices such as S&P CNX nifty, BSE100, BSE200, BSE-PSU, BSE
500 index, BSE bankex, and other sectoral indices.

2. Debt funds: Interest Rates on Alternative Investments as Benchmarks, I-Bex Total Return
Index, JPM T-Bill Index Post-Tax Returns on Bank Deposits versus Debt Funds.

3. Liquid funds: Short Term Government Instruments’ Interest Rates as Benchmarks, JPM T-
Bill Index.

To measure the fund’s performance, the comparisons are usually done

with:
i) Market index.
ii) Funds from the same peer group.
iii) Other similar products in which investors invest their funds.

FINANCIAL PLANNING FOR INVESTORS REFERRING TO MUTUAL FUNDS:

Investors are required to go for financial planning before making investments in any mutual
fund. The objective of financial planning is to ensure that the right amount of money is
available at the right time to the investor to be able to meet his financial goals. It is more than
mere tax planning.

Steps in financial planning are:

1. Asset allocation.
 2. Selection of fund.
3. Studying the features of a scheme.
In case of mutual funds, financial planning is concerned only with broad asset allocation,
leaving the actual allocation of securities and their management to fund managers. A
fund manager has to closely follow the objectives stated in the offer document, because
financial plans of users are chosen using these objectives.

OBJECTIVES:
I)Mutual funds combine the advantage of each of the investment products: mutual fund
is one such option which can invest in all other investment options. Its principle of
diversification allows the investors to taste all the fruits in one plate. just by investing in it,
the investor can enjoy the best investment option as per the investment objective.

II) Dispense the shortcomings of the other options: every other investment option has
more or less some shortcomings. Such as if some are good at return then they are not safe, if
some are safe then either they have low liquidity or low safety or both....likewise, there exists
no single option which can fit to the need of everybody. But mutual funds have definitely
sorted out this problem. Now everybody can choose their fund according to their investment
objectives.

III) Returns get adjusted for the market movements: as the mutual funds are managed by
experts so they are ready to switch to the profitable option along with the market movement.
Suppose they predict that market is going to fall then they can sell some of their shares and
book profit and can reinvest the amount again in money market instruments.

IV) Flexibility of invested amount: Other then the above mentioned reasons, there exists
one more reason which has established mutual funds as one of the largest financial
intermediary and that is the flexibility that mutual funds offer regarding the investment
amount. One can start investing in mutual funds with amount as low as Rs. 500 through SIPs
and even Rs. 100 in some cases.

Not all award-winning funds may be suitable for everyone

Many investors feel that a simple way to invest in Mutual funds is to just keep investing in
award winning funds. First of all, it is important to understand that more than the awards; it is
the methodology to choose winners t at is more relevant.

A rating firm generally elaborates on the criteria for deciding the winner’s i.e. consistent
performance, risk adjusted returns, total returns and protection of capital. Each
of these factors is very important and ha s its significance for different categories of funds.

Besides, each of these factors has varying degree of significance for different kinds of
investors. For example, consistent return really focuses on risk. If someone is afraid of
negative returns, consistency will be a more import ant measure than tot al ret urn i.e. Growth
in NAV as well as dividend received.

A fund can have very impressive total returns overtime, but can be very volatile and tough for
a risk adverse investor. Therefore, all the ward winning funds in different categories may not
be suitable for everyone. Typically, when one has to select funds, the first step should be to
consider personal goals and objectives. Invest ors need to decide which element they value
the most and the n prioritize the other criteria
 1.3. COMPANY PROFILE

Angel Broking is an Indian Stock

Broking firm established in 1987.
The company is a member of the
Bombay Stock Exchange (BSE),
National Stock Exchange (NSE),
National Commodity & Derivatives Exchange Limited (NCDEX) and Multi Commodity
Exchange of India Limited (MCX). It is a depository participant with Central Depository
Services Limited (CDSL). The company has 8500+ sub-brokers and franchisee outlets in
more than 850 cities across India.
We are a leading stock-broking and wealth management firm, headquartered in India. We
operate on a unique retail-focused stock trading model that provides revolutionary trading
platforms and expertise to a diversified client base.
Angel Broking, Ltd. provides retail personal financial services in India. The company offers
e-broking, portfolio management, mutual fund, private client group, commodities broking,
investment advisory, wealth management, IPO, and depository services. The company was
founded in 1987 and is based in Mumbai, India.
Angel Broking Limited is one of the leading and professionally managed stock broking firm
involved in quality services and research. Angel Broking Limited is a corporate member of
The Stock Excange, Mumbai. The membership of the company with The Stock Exchange
Mumbai was originally in the name of Mukesh R. Gandhi, which was eventually turned into
a corporate membership in the name of Angel Broking Limited.
Angel Broking Limited is managed by Mr. Dinesh Thakkar and he is well supported by Mr.
Mukesh Gandhi, a fifteen years veteran in the market. The group is well supported by a
professional and qualified research team and efficient operations and back office team, which
comprises of highly dedicated and qualified individuals. Angel has an in-house, state of art
research department.
The company Angel Broking provides financial services to retail clients. Their services
include online stockbroking, depositoryservices, commoditytradingand investmentadvisory
services.
Wealth management solutions such as personal loans and insurance are also delivered by this
company. In 2006, the company started its Portfolio Management Services (PMS), IPOs
business and Mutual Funds Distribution (MFD) arm. The company publishes research reports
on areas related to investment broking.
Angel Broking's tryst with excellence in customer relations began in 1987. Today, Angel has
emerged as one of the most respected Stock-Broking and Wealth Management Companies in
India. With its unique retail-focused stock trading business model, Angel is committed to
providing ‘Real Value for Money’ to all its clients.
Angel believes in reaching out to the customer at the farthest end rather than by reaching out
to them. The company in its endeavour to give its client the best has opened up several
branches all over Mumbai, which are efficiently integrated with the Head Office.
Angel Broking Limited is primarily into retail stock broking, with a customer base of retail
investors, which has been increasing at a compounded growth rate of 100% every year. The
company has huge network sub-brokers in Mumbai and other places outside Mumbai,
registered with SEBI, who act as chanel partners for the company. The company presently
has a total staff strength of around 150 employees who are spread accordingly across the head
office and all the branches.
Angel has empowered its physical presence throughout India through various strategies
which it has been adopting efficiently and effectively over a period of time, like opening up
of branches at various places, tie-ups with various agencies and sales agents, buy-outs of
smaller regional outfits and appointment of sub-brokers and franchisees. Moreover Angel has
been tapping and including high net-worth and self-employed individuals it its vast array of
clients.
Angel has always strived in the direction of delivering ultimate client satisfaction and
developing stronger bonds with its customers and chose partners. Angel has a vision to
introduce new and innovative products and services regularly. Moreover Angel has been one
among the pioneers to introduce the latest technological innovations and integrate it
efficiently within its business.
1.3.1. PRODUCTS
Angel Broking offers products such as Angel Eye, Angel SpeedPro, Angel Trade and Angel
Swift for online trading. Angel Eye is a browser trading application; SpeedPro is a trading
platform application; Angel Trade offers an online trading platform for share investors, while
Swift consists of a trading app for small devices.
1.3.2. AWARDS
• 2009 - 'Broking House with Largest Distribution Network' Award and 'Best Retail
Broking House' Award at BSE IPF-D&B Equity Broking Awards
• 2012 - BSE IPF-D&B Equity Broking Award for ‘Best Retail Broking House’
• 2012-13 - Among BSE Top 10 Performers in Equity Segment (Retail Trading) FY
2012-13
• 2013 - BSE-IPF D&B Equity Broking Award for ‘Broking House with Largest
Distribution Network’
• 2013 - BSE-IPF D&B Equity Broking Award for 'Best Retail Equity Broking House'
• 2013-14 - Awarded ‘Top Three Clients Traded Members in Equity’ by the BSE
• 2014 - BSE-IPF D&B Equity Broking Award for ‘Broking House with Largest
Distribution Network’.

1.3.3. ANGEL GROUP

• Angel Broking Pvt.Ltd
• Angel Commodities Broking Pvt.Ltd
• Angel Securities Ltd

1.3.4. CORE VALUES

Our Vision
To provide best value for money to investors through innovative products,
trading/investments strategies, state of the art technology and personalized service.
Our Motto
To have complete harmony between quality-in-process and continuous improvement to
deliver exceptional service that will delight our Customers and Clients.
Our CRM Policy: Customer is King
“A Customer is the most Important Visitor on our premises. He is not dependent on us, but
we are dependent on him. He is not an interruption in our work. He is the purpose of it. He is
not an outsider in our business. He is part of it. We are not doing him a favor by serving him.
He is doing us a favor by giving us an opportunity to do so.” - Mahatma Gandh
Business Philosophy
Ethical practices & transparency in all our dealings
Customers interest above our own
Always deliver what we promise
Effective cost management
Our Quality Assurance Policy
We are committed to providing world-class products and services which exceed the
expectations of our customers, achieved by teamwork and a process of continuous impro

1.3.5. LIST OF TRADING SERVICES PROVIDED BY ANGEL BROKING

1) Equity
2) Derivatives
3) Commodities
4) Life Insurance
5) Mutual Fund
6) Depository Services
7) PMS Portfolio Management
8) Currency Trading
9) Investment Management Advisory
10) IPO
11) Demat Account
12) Trading Account
13) Intraday Trading Tips

1.3.5.1. EQUITY
Intraday Trading
Investing in shares or stock market is inarguably the best route to long-term wealth
accumulation. However, it can also be a very risky proposition due to high risk-return trade-
off prevalent in the stock market. Hence, it is more appropriate to take help of an experienced
and trustworthy expert who will guide you as to when, where and how to invest.
Angel provides guidance in the exciting world of stock market with suitable trading solutions
and value-added tools and services to enhance your trading experience.
Online Equity Trading
Three different online products tailored for traders & investors
Customized single screen Market Watch for multiple exchanges
Real-time rates
Flash news & intra-day calls
Intra-day & historical charts with technical tools
Online research
E-broking & back-office software training
Quality Research
Wide range of daily, weekly and special Research reports
Expert Sector Analysts with professional industry experience
Advisory
Real-time market information with News updates
Investment Advisory services
Dedicated Relationship Managers
Portfolio Management Services
Support
24x7 Web-enabled Back Office
Centralized Help Desk
Live Chat support system
1.3.5.2. DERIVATIVES TRADING
The derivative segment is a highly lucrative market that gives investors an opportunity to
earn superlative profits (or losses) by paying a nominal amount of margin. Over past few
years, Future & Options segment has emerged as a popular medium for trading in financial
markets. Future contracts are available on Equities, Indices, Currency and Commodities.
Angel with its membership as Trading and Clearing Member of NSE F&O Segment and BSE
Derivatives Segment, provides you a gateway to the exciting world of derivative market.
1.3.5.3. COMMODITIES
Commodities Derivative market has emerged as a new avenue for investors to create wealth.
Today, Commodities have evolved as the next best option after stocks and bonds for
diversifying the portfolio. Based on the fundamentals of demand and supply, Commodities
form a separate asset class offering investors, arbitrageurs and speculators immense potential
to earn returns.
Angel aims to harness the immense potential of the Commodities market by providing you a
simple yet effective interface, research and knowledge.
The Angel Advantage
Angel provides user-friendly online platforms for commodity trading in the leading
commodity exchanges.
Online Trading
Three different online products tailored for traders & investors
Single screen customized Market-Watch for MCX & NCDEX with BSE & NSE
Streaming quotes

Top quality Research

In house research on more than 25 commodities
Highly skilled Analysts with professional industry experience
Daily, Weekly and Monthly Research Reports
Pro-active Relationship Management
Active advisory desk
Efficient & nationwide network
Seminars, workshops and investment camps for investors
1.3.5.4. LIFE INSURANCE
Ensure your family’s well-being by securing their future with a life insurance policy. No
financial planning is complete without life insurance. Angel offers an array of life insurance
products like Term Plans, Endowment Plans, Money back Plans, Children Life Insurance
Plans and ULIP Plans to meet your individual insurance requirements.
The Angel Advantage
Low and affordable Premium with maximum life cover
Assistance at your doorstep
Tailor made plans to suit your financial needs
Help desk for all your queries
Hassle free and transparent dealings
1.3.5.5. MUTUAL FUNDS
Investing in a Mutual fund is an excellent way of diversifying risk as well as portfolio. Angel
presents its Mutual fund services that strive to meet all your mutual fund investment needs.
We have a wide spectrum of investment schemes from all top mutual fund houses.
Angel also provides recommendations based on in-depth research, mutual fund performance
and mutual fund ratings to help meet your investment goals.
The Angel Advantage
Pan India presence
Online and offline transaction facility
Schemes from all major fund houses
Latest MF News and Fund Manager views
Latest New Fund Offers (NFO)
Information and tools to help you select the right scheme
Dedicated Customer Help desk
24x7 Web-enabled Client Back Office
1.3.5.6. DEPOSITORY SERVICES
Enjoy the dual benefits of trading and depository services under one roof and experience
efficient, risk-free and prompt depository service. Angel is registered as a Depository
Participant with CDSL. We are also a member of the Bombay Stock Exchange (BSE),
National Stock Exchange (NSE) and the two leading Commodity Exchanges in the country–
NCDEX & MCX.
Angel Advantage
Automated pay-in facility
Access information – Anytime, Anywhere
Quarterly demat statements with valuation
Statements on demand
View Demat A/C statement online
Competitive transaction charges
Enjoy exclusive benefits by registering with us:
No risk of loss, wrong transfer, mutilation or theft of share certificates
Hassle free automated pay-in of your sell obligation with no need for physical instruction
Reduced paper work
Speedy settlement process resulting in increased liquidity of your securities
Instant disbursement of non-cash benefits like Bonus and Rights
Efficient pledge mechanism
Wide branch coverage
Personalized services of trained Help desk
No charges for extra Transaction statement and Holding statement
Combined monthly 'Bill-cum-Transaction-cum-Holding-cum-Ledger' statement of your
investments
You can avail of the 'Basic Service Demat Account' scheme introduced by SEBI. For details
contact your branch
With reference to SEBI Circular no. CIR/MIRSD/12/2013 dated December 04, 2013
regarding Simplification of demat account opening process, The existing Beneficial Owner-
Depository Participant Agreements stands to be replaced with a common document Rights
and Obligations of the Beneficial Owner and Depository Participant. The same is given
herewith. Kindly take note of the same.

1.3.5.7. PORTFOLIO MANAGEMENT SERVICES

Portfolio Management Service is a highly customized service offering a range of investment
options best suited in the current market scenario. Angel offers professional Portfolio
Management Service (PMS) to HNI’s who seek customized solutions to realize their
investment goals. Our Portfolio Managers are equipped to design an investment portfolio
across various investment avenues like Equities, Fixed Deposits, Bonds etc. in sync with your
unique needs.
Approach to PMS
Diversification of portfolio for containing non systematic risks in equity market.
Active risk management
Active review and rebalancing
Expert management
Best Retail Broking House and Broking House with the Largest Distribution Network –
award by DNB (2009)
Strong risk management
Experienced and strong fund management team
Efficient and personalized client servicing
No entry load on investment
No lock in period for the investment.
Flexibility to switch from one strategy to other(Charges applicable)
Additional purchase facility
Withdrawal facility for any amount above Rs 25lacs.
Benefits at Angel
Investment in companies that have a strong competitive advantage over their peers
Well laid-out investment philosophy
Pro-active management of funds
Dedicated Relationship Manager
Quarterly newsletter from fund management team
Committed parentage
Minimum Investment:Rs. 25lacs and Multiples of Rs 1 thereof
Mode- Either Cheque payment or Stock Transfer or combination thereof
Service Proposition
Online-Access to Portfolio – Login Id and Password
Monthly fund performance and fund manager ‘s views on e-mails
Quarterly performance report statement in a new form
CA certified Profit & Loss account and Balance Sheet of investments
Dedicated fund coordinator for fund-related queries
Centralized team of service coordinators for hassle-free servicing
Event-based interaction with fund management team
Servicing from large network of branches across India
1.3.5.8. CURRENCY TRADING
The global increase in trade and foreign investments has led to inter-connection of many
national economies. This and the resulting fluctuations in exchange rates, has created a huge
international market for Forex rendering investors another exciting avenue for trading. The
Forex market offers unmatched potential for profitable trading in any market condition or any
stage of the business cycle.

Indian Forex Market

In terms of daily turnover in 2010, India is the 16th largest market in the world. India’s
market share in World FX Market increased from 0.1 % in 1998 to 0.9% in 2010. As per
Latest RBI Data, Daily FX Indian Market volumes are $50 Billion in 2009.
Indian Currency Futures Market – Present Status
Currency Futures Trading was launched in India on 29th August, 2008 on NSE. NSE &
MCX’SX are the major 2 exchanges presently. “United Stock Exchange of India” is the
upcoming exchange promoted by Bank of India, Federal Bank, MMTC & Jaypee Capital
along with 9 other banks. The FX market in India is regulated by The Foreign Exchange
Management Act, 1999 or FEMA, Presently Daily Turnover on both exchanges averages Rs.
35000 crores. Banks are active participants on the exchanges. NRIs & FIIs are not permitted
to trade as of now. Currency markets offer investors a step into the world of Forex. The
global increase in trade and foreign investments has led to inter-connection of many national
economies. This and the resulting fluctuations in exchange rates, has created a huge
international market for Forex rendering investors another exciting avenue for trading. The
Forex market offers unmatched potential for profitable trading in any market condition or any
stage of the business cycle.
NRI SERVICES : Living in a foreign country never weakens the thread that binds you to
your homeland. Angel Broking understands the varied needs of the NRIs and value their
patronage. We offer a bouquet of products and services for NRIs.
Our Service Matrix:
• NRI services desk for personalized assistance to NRI and PIO clients
• Dedicated offline equity dealing desk
• Online equity trading platforms
• Depository services
• 24x7 back office
• NRI investment advisory desk
• PMS
• IPO and mutual funds
• Insurance and personal loan solutions
• Banking support
• Pan Card assistance

1.3.5.9. INVESTMENT MANAGEMENT ADVISORY

Even a seasoned investor knows that effective timing of markets is not possible. Therefore,
professional and expert advice is essential to generate superior returns from the stock market.
At Angel, we offer you investment advisory services with ternary objective of superior
returns, risk minimization and portfolio diversification. Supported by a highly specialized and
dedicated Research team, Angel follows a client-centric approach to offer customized
solutions.
Personalized Services
• One-to-One communication between client and Relationship Managers
• Effective investment advice and Research reports for clients
• Daily Calls before market hours
Investment management is an important part of life today. It’s all the more important
considering that investment done without investment management may lead to below par
returns or even negative returns that may arise if a proper investment advisory is missing.
With growth in global economy the money market has also seen tremendous growth and
opportunities for investment are much more than they were before. This face makes
investment management critical considering you need a comprehensive investment advisory
that studies the options available and makes the best decision for you based on your risk
appetite. Angel broking does investment management for its clients through various
investment advisory services as below – Angel Gold is a planning based investment advisory
service with a highly disciplined approach to investment management aiming to enhance
returns, minimize risks and diversify portfolio.
Also for regular clients Angel provides SMS investment advisory services called Market in
your pocket that includes daily stock views, investment views, market news and technical
calls.
1.3.5.10. IPO
Online IPO provides clients the facility to conveniently apply for the various IPO’s without
any paper work. This electronic interface also allows online payment for IPO through 20
different banks.
1.3.5.11. DEMAT ACCOUNT
Demat Account came into existence in India in 1996, stocks and shares were issued and
traded in physical paper form. With the age of computers and Technology, shares and
securities are held electronically in a Dematerialized form (Demat Account), instead of the
investor taking physical possession of certificates. It allows you to buy, sell as well as
transact conveniently without the need of any paperwork. You can open demat account by
registering with a Stock Broker like Angel Broking.
Is demat account necessary
Nowadays, practically all trades are settled in dematerialized form. Although the market
regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of upto 500
shares to be settled in physical form, however trading using a demat account is widely
accepted, hence it is advisable to have a demat account for dealing in Stocks and Shares. .
Advantages of Demat Account
• Environment Friendly - Less of Paperwork since securities held in electronic form.
• secure and convenient way to keep track of shares
• Quick Settlement
• Saves Time
• No Storage Risk – Unlike paper certificates dematerialized stocks and shares can’t be
stolen or damage or forgeds
• All in ONE - Trade in Equity, gold ETFs and commodity futures
• Effective Management
Open Demat & Trading Account with Angel Broking
• Broking presence in the industry since 1987
• Technology enabled demat and trading account services
• Technical and Fundamental research guidance
1.3.5.12. TRADING ACCOUNT
Online Trading Account
Just buying the shares of a company is not enough. They should be sold through online
trading to generatereturnsandmakemoney.
To buy and sell shares, you need to open a trading account with a broker. A broker is an
intermediary of the Stock Exchange. Only registered members can operate in the stock
market. An investor can trade by executing a deal only through a registered broker such as
Angel Broking or through a SEBI-registered sub-broker.
Trading Account Features
The trading account is used mainly for buying and selling of shares. An investor doesn’t
require a trading account to store shares and in certain cases when their trading is done by
another individualtraderorcompany.
The bank account should be linked to the investor’s trading account to carry out monetary
transactions. An online trading account provides a secure platform to do share trading with
advancedsecurityfeatures.
An online trading account usually comes with add-on software for PC and mobile apps for
trading anytime, anywhere. These high-end technology solutions are specially designed with
an intuitive user-interface for making expert trading decisions. Some of the features of a
trading account software application are Portfolio tracker, tick-by-tick updates, interactive
charts etc.
Investment Brokers/Advisors provide personalized advice to investors who open a trading
account with them at competitive brokerage charges.

1.3.5.13. INTRADAY TRADING TIPS

Intraday Trading (Same Day Trading)
Intraday Trading, also known as Day Trading, is a simple process of buying and selling
stocks on the same day instead of waiting for delivery after 2 days. Otherwise, people trading
in stock markets who buy stocks get the delivery in their demat account after the settlement
process is over, which takes 2 days (T+2) from the day transaction takes place.
Advantages of Intraday Trading
• No need to worry about market update news that comes at night
• Efficient money management
• Price fluctuations gives many opportunities for profit-making
• Easy Trading in liquid markets
• Lower brokerage
• Intraday traders can create short position in the cash segment if they have a bearish
view on the stock
Intraday Trading Tips
• Study the types of stocks of companies you want to invest in
• Buy shares of different companies from different sectors
• Buy/Sell for intraday and square off the position as soon as desired profit is achieved
• Check the trend patiently using technical analysis and accordingly, go for fewer
transactions
• Trade only in high liquidity stocks (preferably NSE 200 stocks)
• Always use protective stop losses
• Do not carry forward a loss making intraday tr
 2.1.NEED FOR THE STUDY

Mutual funds is an important financial instrument that plays an effective role in development
of the country by way of increasing national income by investing in funds of various financial
instruments.Although it is possible for an individual investor to understand Indian companies
(and investing) in such an environment, the process can become fairly time consuming.

This study helps to compare various funds of competing fund house performances and its
functioning such that it helps an average investor to make valued decisions in selecting
themutual fund scheme that matches their investment objective.It basically helps to know
therisk involved in mutual funds and the returns that they derive from it.It helps in
understanding and developing various SIP schemes.
 2.2.OBJECTIVES OF THE STUDY
Primary Objective
To make a comparative performance analysis of Systematic investment planning schemes of
competing mutual funds.
Secondary Objectives
 To compare the performance of SIP schemes of various mutual funds.
 To analyse the risk adjusted returns of selected mutual funds.

 To get an insight in the process of risk, return and deployment of funds.

 To find whether the funds have underperformed or outperformed by comparing them

with the market return.

 To find whether the growth oriented Mutual Fund are earning higher returns than the
benchmark returns (or market Portfolio/Index returns) in terms of risk.

2.3.SCOPE OF THE STUDY

The scope of the study is relatively wide as it analyses the performance of selected mutual
funds based on the ratings given by various agencies. The schemes are categorized
and selected on evaluating their performance and risk.The scope of the project is
mainly concentrated on the different schemes of mutual funds.The ideal portfolio is
created by analyzing the risk pattern of the schemes and distributing the overall risk to
earn maximum returns.
The study analyses how exactly the investors get returns for their investment in mutual
funds.From the organization point of view this study will surely help those to improve
the quality of the service provided to mutual fund investors.

2.4.LIMITATIONS OF THE STUDY

• The study is limited only to the analysis of different schemes of different fund houses
and its suitability to different investors according to their risk-taking ability.
• The study is based on secondary data available from monthly fact sheets, websites and
other books, as primary data was not accessible.
• The study is limited by the detailed study of top 5 Fund Houses.
• The study is based on the assumption that all investors have the same information
and beliefs about the distribution of returns.
• The study excludes the entry and the exit loads of the mutual funds.
 2.5.REVIEW OF LITERATURE

Dr. K. Veeraiah and Dr. A. Kishore Kumar (Jan 2014), conducted a research on
Comparative Performance Analysis of Select Indian Mutual Fund Schemes. This study
analyzes the performance of Indian owned mutual funds and compares their performance.
The performance of these funds was analyzed using a five year NAVs and portfolio
allocation. Findings of the study reveals that, mutual funds out perform naïve investment.
Mutual funds as a medium-to-long term investment option are preferred as a suitable
investment option by investors.

C.SrinivasYadav and Hemanth N C (Feb 2014), have studied Performance of Selected

Equity Growth Mutual Funds in India: An Empirical Study during 1 st June 2010 To 31st May
2013. The study evaluates performance of selected growth equity funds in India, carried out
using portfolio performance evaluation techniques such as Sharpe and Treynor measure. S&P
CNX NIFTY has been taken as the benchmark. The study conducted with 15 equity growth
Schemes (NAV ) were chosen from top 10 AMCs ( based on AUM) for the period 1st June
2010 to 31st may 2013(3 years).

Mrs.V. Sasikala and Dr. A. Lakshmi (Jan 2014) have studied The MutualFund
Performance Between 2008 And 2010: Comparative Analysis. The paperentitled
“comparative analysis of mutual fund performance between 2008 &2010. The paper was
undertaken to know the after meltdown period risks and returns of 2008 top hundred mutual
funds and compare with 2010 top hundred mutual funds published in Business today. The
analysis of alpha, beta, standard deviation, Sharpe ratio and R-squared are declare high, low,
average, above average and below average of risks and return of funds.

VibhaLamba (Feb 2014), has done an analysis of Portfolio Management in India. The
purpose of present study is to analyse the scope and importance of portfolio management in
India. This paper also focuses on the types and steps of portfolio management which a
portfolio manager should take to provide maximum returns and minimum risk to his clients
for their investments.

Dr. N. K. Sathya Pal Sharma and Ravikumar. R (2013), have done the Analysis of the
Risk and Return Relationship of Equity Based Mutual Fund in India. In this paper an attempt
has been made to analyze the performance of equity based mutual funds. A total of 15
schemes offered by 2 private sector companies and 2 public sector companies, have been
studied over the period April 1999 to April 2013 (15years). The analysis has been made using
the risk-return relationship and Capital Asset Pricing model (CAPM).

S. Palani and P. Chilar Mohamed (Dec 2013) have done study of Public and Private Sector
Mutual Fund in India. Development of capital market in a country is an important
prerequisite which only would enable industrial development, Business growth and there by
contribution towards economic development. Without any doubt it could be stated that
economic development, measured in the form of growth in GDP or NNP is one of the
objectives of every country in the world. A well integrated Financial System alone could
hasten economic growth which it does through channelizing productive resources towards
industrial growth and development.

JafriArshadHasan, (2013), has studied The Performance Evaluation of Indian Mutual Fund
Industry past, Present and Future. This article will discuss the past performance of the Indian
mutual fund industry and the pace of growth it achieved after being succumbed to regulatory
changes by SEBI, international factors and its non performance that affected the industry and
its sentiments. It will also analyse the future implications of the current changes that are being
implemented by the regulator.

Dr.S. Vasantha, Uma Maheswari and K.Subashini, (Sep 2013), Evaluating the
Performance of some selected open ended equity diversified Mutual fund in Indian mutual
fund Industry. The main objective of this research paper is to evaluate the performance of
selective open ended equity diversified Mutual fund in the Indian equity market. For the
purpose of conducting this study HDFC top 200 fund(g).Reliance top 200(g).ICICI
Prudential top 200(g). Canara Robeco equity diversified fund(g).Birla Sun Life frontline
equity (g) mutual funds have been studied over the period of 60 months data which is from
January 2008 to December 2012.

Rashmi Sharma and N. K. Pandya (2013), have done an overview of Investing in Mutual
Fund. In this paper, structure of mutual fund, comparison between investments in mutual
fund and other investment options and calculation of NAV etc. have been considered. In this
paper, the impacts of various demographic factors on investors’ attitude towards mutual fund
have been studied. For measuring various phenomena and analyzing the collected data
effectively and efficiently for drawing sound conclusions, drawing pie charts has been used
and for analyzing the various factors responsible for investment in mutual funds.

Rajiv G. Sharma (Aug 2013) has done a Comparative Study on Public and Private Sector
Mutual Funds in India. The study at first tests whether there is any relation between
demographic profile of the investor and selection of mutual fund alternative from among
public sector and private sector. For the purpose of analysis perceptions of selected investors
from public and private sector mutual funds are taken into consideration. The major factors
influencing the investors of public and private sectors mutual funds are identified. The factors
under consideration to compare between perceptions of public and private sector mutual fund
investors are Liquidity, Security, Flexibility, Management fee, Service Quality, Transparency,
Returns and Tax benefits.

Dr. E. Priyadarshini (2013), has done Analysis of the Performance of Artificial Neural
Network Technique for Forecasting Mutual Fund Net Asset Values. In this paper, the Net
Asset Values of four Indian Mutual Funds were predicted using Artificial Neural Network
after eliminating the redundant variables using PCA and the performance was evaluated using
standard statistical measures such as MAPE, RMSE, etc.

Rahul Singal, AnuradhaGarg and Dr Sanjay Singla (May 2013), have done Performance
Appraisal of Growth Mutual Fund. The paper examines the performance of 25 Growth
Mutual Fund Schemes. Over the time period Jan 2004 to Dec 2008. For this purpose three
techniques are used (I) Beta (II) Sharpe Ratio (III) Treynor Ratio. Rank is given according to
result drawn from this scheme and comparison is also made between results drawn from
differentschemes and normally the different are insignificant.

DhimenJani and Dr. Rajeev Jain (Dec 2013), have studied Role of Mutual Funds in Indian
Financial System as a Key Resource Mobiliser. This paper attempts to identify, the
relationship between AUM mobilized by mutual fund companies and GDP growth of the
India. To find out correlation coefficient Kendall’s tau b and spearman’s rho correlation ship
was applied, the data range was selected from 1998-99 to 2009-10.
Dr. R. Narayanasamy and V. Rathnamani (Apr 2013), have done Performance Evaluation
of Equity Mutual Funds (On Selected Equity Large Cap Funds).This study, basically, deals
with the equity mutual funds that are offered for investment by the various fund houses in
India. This study mainly focused on the performance of selected equity large cap mutual fund
schemes in terms of risk- return relationship. The main objectives of this research work
are to analysis financial performance of selected mutual fund schemes through the statistical
parameters such as (alpha, beta, standard deviation, r-squared, Sharpe ratio).

Prof. V. Vanaja and Dr. R. Karrupasamy (2013), have done a Study on the Performance of
select Private Sector Balanced Category Mutual Fund Schemes in India. This study of
performance evaluation would help the investors to choose the best schemes available and
will also help the AUM’s in better portfolio construction and can rectify the problems of
underperforming schemes. The objective of the study is to evaluate the performance of
select Private sector balanced schemes on the basis of returns and comparison with their
bench marks and also to appraise the performance of different category of funds using risk
adjusted measures as suggested by Sharpe, Treynor and Jensen.

Dr. D. Rajasekar (Sep 2013), has done a Study on Investor`s Preference Towards Mutual
Funds With Reference To Reliance Private Limited, Chennai - An Empirical Analysis. The
data was analyzed using the statistical tools like percentage analysis, chi square, weighted
average. The report was concluded with findings and suggestions and summary. From the
findings, it was inferred overall that the investor are highly concerned about safety and
growth and liquidity of investments. Most of the respondents are highly satisfied with the
benefits and the service rendered by the Reliance mutual funds.

S. Palani and P. Chilar Mohamed (Dec 2013) have done study of Public and Private Sector
Mutual Fund in India. Development of capital market in a country is an important
prerequisite which only would enable industrial development, Business growth and there by
contribution towards economic development. Without any doubt it could be stated that
economic development, measured in the form of growth in GDP or NNP is one of the
objectives of every country in the world. A well integrated Financial System alone could
hasten economic growth which it does through channelizing productive resources towards
industrial growth and development.
JafriArshadHasan, (2013), has studied The Performance Evaluation of Indian Mutual Fund
Industry past, Present and Future. This article will discuss the past performance of the Indian
mutual fund industry and the pace of growth it achieved after being succumbed to regulatory
changes by SEBI, international factors and its non performance that affected the industry and
its sentiments. It will also analyse the future implications of the current changes that are being
implemented by the regulator.

Dr.S. Vasantha, Uma Maheswari and K.Subashini, (Sep 2013), Evaluating the
Performance of some selected open ended equity diversified Mutual fund in Indian mutual
fund Industry. The main objective of this research paper is to evaluate the performance of
selective open ended equity diversified Mutual fund in the Indian equity market. For the
purpose of conducting this study HDFC top 200 fund(g).Reliance top 200(g).ICICI
Prudential top 200(g). Canara Robeco equity diversified fund(g).Birla Sun Life frontline
equity (g) mutual funds have been studied over the period of 60 months data which is from
January 2008 to December 2012.

Dr. Yogesh Kumar Mehta (Feb 2012), has studied Emerging Scenario of Mutual Funds in
India: An Analytical Study of Tax Funds. The present study is based on selected equity funds
of public sector and private sector mutual fund. Corporate and Institutions who form only
1.16% of the total number of investors accounts in the MFs industry, contribute a sizeable
amount of Rs. 2,87,108.01crore which is 56.55% of the total net assets in the MF industry. It
is also found that MFs did not prefer debt segment.

DrSurender Kumar Gupta and Dr. SandeepBansal (Jul 2012), have done a Comparative
Study on Debt Scheme of Mutual Fund of Reliance and Birla Sunlife. This study provides an
overview of the performance of debt scheme of mutual fund of Reliance, and Birla Sunlife
with the help of Sharpe Index after calculating Net Asset Values and Standard Deviation. This
study reveals that returns on Debt Schemes are close to Benchmark return (Crisil Composite
Debt Fund Index: 4.34%) and Risk Free Return: 6% (average adjusted for lastfive year).

Prof. Kalpesh P Prajapati and Prof. Mahesh K Patel (Jul 2012), have done a Comparative
Study On Performance Evaluation of Mutual Fund Schemes Of Indian Companies. In this
paper the performance evaluation of Indian mutual funds is carried out through relative
performance index, risk-return analysis, Treynor's ratio, Sharp's ratio, Sharp's measure,
Jensen's measure, and Fama's measure. The data used is daily closing NAVs. The source of
data is website of Association of Mutual Funds in India (AMFI). The study period is 1st
January 2007 to 31st December, 2011. The results of performance measures suggest that most
of the mutual fund have given positive return during 2007 to 2011.

Dr. Mamta Shah (Dec 2012) has done research on Marketing Practices of Mutual Funds.
Development of an economy necessarily depends upon its financial system and the rate of
new capital formation which can be achieved by mobilizing savings and adopting an
investment pattern, be its self-financing (i.e. direct or indirect) where financial intermediaries
like banks, insurance and other financial companies come in the picture and mediate between
savers and borrowers of funds. In the same way there are different types of investors and each
category of investors differs in its objectives and hence it is imperative for investment
managers to choose an appropriate investment policy for the group they are dealing with,
further managing the investment is a dynamic and an ongoing process.

Abhishek Kumar (October 2012), have studied Trend in Behavioral Finance and Asset
Mobilization in Mutual Fund Industry of India. This paper tries to analyze some of the key
issues noted below:
1. To understand the growth and the potential of Mutual Fund industry and analyze its
success.
2. An exhaustive cross performance study of Mutual fund industry by analyzing around 1025
mutual fund schemes of India.
3. Performance analyses of various mutual fund schemes and its contributions to assets
management during the study period (2002-2009).
4. Insight about the performance of the mutual fund under short term and longterm period and
5. Investor’s behavior in allocating their investments among various assets available in the
market compared to Mutual funds in the changing economic Scenario.

B. Raja Manner and Dr. B. Ramachandra Reddy (Oct 2012), Review and Performance of
Select Mutual Funds Operated By Private Sector Banks: Axis Equity and Kotak 50 Funds –
Growth Option. The two mutual funds (i) Axis Equity (G) and (ii) Kotak 50 (G) are reviewed
in detail with a brief introduction of the fund houses itself. The funds are then statistically
evaluated by correlation with the benchmark. S&P CNX Nifty, standard deviation, Sharpe’s
Index. Treynor’s Ratio, Jenson’s alpha, Fama’s Measure and M2.

E. Priyadarshini and Dr. A. Chandra Babu (2011), have done Prediction of The Net Asset
Values of Indian Mutual Funds Using Auto- Regressive Integrated Moving Average (Arima).
In this paper, some of the mutual funds in India had been modeled using Box-Jenkins
autoregressive integrated moving average (ARIMA) methodology. Validity of the models was
tested using standard statistical techniques and the future NAV values of the mutual funds
have been forecasted.

Dr. Ranjit Singh, Dr.Anurag Singh and Dr. H. Ramananda Singh (August
2011), have done research on Positioning of Mutual Funds among Small Town and Sub-
Urban Investors. In the recent past the significant proportion of the investment of the urban
investor is being attracted by the mutual funds. This has led to the saturation of the market in
the urban areas. In order to increase their investor base, the mutual fund companies are
exploring the opportunities in the small towns and sub-urban areas. But marketing the mutual
funds in these areas requires the positioning of the products in the minds of the investors in a
different way. The product has to be acceptable to the investors, it should be affordable to the
investors, it should be made available to them and at the same time the investors should be
aware of it. The present paper deals with all these issues. It measures the degree of influence
on acceptability, affordability, availability and awareness among the small town and sub-
urban investors on their investment decisions.

Dr. Ashok Khurana and KavitaPanjwani (Nov, 2010), have analysed Hybrid Mutual
Funds. Mutual fund returns can be compared using Arithmetic mean & Compounded Annual
Growth Rate. Risk can be analyzed by finding out Standard Deviation, Beta while
performance analysis is based on Risk-Return adjustment. Key ratios like Sharpe ratio and
Treynor ratio are used for Risk-Return analysis. Funds are compared with a benchmark,
industry average, and analysis of volatility and return per unit to find out how well they
are performing with respect to the market Value at Risk analysis can be done to find out the
maximum possible losses in a month given the investor had made an investment in that
month. Based on the quantitative study conducted company a fund is chosen as the best fund
in the Balance fund growth schemes.
RESEARCH METHODOLOGY
3.1.1 RESEARCH
Research is a process in which the research wishes to find out the end result for a given
problem and thus the result for a given problem and thus the solution helps in the future
course of action.
3.1.2 RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically. It is necessary for the
researcher to know not only the research methods/techniques, but also the methodology.
Researcher not only need to know how to develop certain indices or test but they also need to
know which of these methods or techniques are relevant and which are not relevant and what
would they mean and indicate and why.

3.1.3 RESEARCH DESIGN

A research design is the arrangement of conditions for collection and analysis of data
in a manner that aims to combine relevance to the research purpose with economy in
procedure. In fact, the research design is the conceptual structure within which research is
conducted. It constitutes the blue print for the collection, measurement and analysis of data.
3.1.4 TYPE OF RESEARCH USED IN THE STUDY
The type of research that is carried out is analytical in nature since the research mainly
deals with facts or information already available, and analyzes them to make a critical
evaluation of the material and finding a solution to the problem. The analytical research is
mainly done based on the secondary data which is already published.
3.1.5 SOURCE OF DATA
The data collected for the study are primarily secondary in nature. Secondary data
means data that are already available in the hands of the public which are collected by the
government, companies, regulatory authority to ensure the transparency in the trading
activity. Secondary data for this study have been collected from news papers, websites,
journals, books, reports by management, scholars, and researchers.

3.1.6 PERIOD OF STUDY

The study was conducted for the past one year starting from January 1 2018 to December 31
2018. The schemes are selected on the basis of rating method.

3.1.7 SCHEMES SELECTED FOR THE STUDY

SCHEME NAME CATEGORY
Adityabirlasunlifesmallcap fund – Growth Equity-Smallcap
HDFC Smallcap fund – Growth Equity-Smallcap
ICICI Prudential Smallcap fund – Growth Equity-Smallcap
Reliance Smallcap fund- Growth Equity-Smallcap
SBI Smallcap fund – Growth Equity-Smallcap
Aditya Birla Sunlife Midcap fund – Growth Equity- Midcap
HDFC Midcap Opportunities fund – Growth Equity-Midcap
ICICI Prudential Midcap fund – Growth Equity – Midcap
Reliance Focused equity fund- Growth Equity – Midcap
SBI Magnum Midcap fund – Growth Equity-Midcap
Aditya Birla Frontline Equity fund –Growth Equity-Largecap
HDFC largecap fund – Growth Equity –Largecap
ICICI Prudential bluechip fund – Growth Equity-Largecap
Reliance Largecap fund – Growth Equity – Largecap
SBI Bluechip fund – Growth Equity- Largecap

3.1.8 TOOLS USED FOR DATA ANALYSIS

A)PERFORMANCE EVALUATION
 Sharpe ratio
 Treynor ratio
 Jensen ratio
B) RISK MEASURES
 Standard deviation
 Beta (β)

A)PERFORMANCEMEASURE
 Sharpe ratio:
The Sharpe ratio was developed by Nobel laureate William F.Sharpe and is used to help
investors understand the return of an investment compared to its risk. Subtracting the risk-
free rate from the mean return allows an investor to better isolate the profits associated with
risk-taking activities. Generally, the greater the value of the Sharpe ratio, the more attractive
the risk-adjusted return.the Sharpe measure of portfolio performance is also relative measure
that ranks the fund in terms of funds(total risk) and return.

 Treynor ratio:
The Treynor ratio, also known as the reward-to-volatility ratio, is a performance metric for
determining how much excess return was generated for each unit of risk taken on by a
portfolio.Excess return in this sense refers to the return earned above the return that could
have been earned in a risk-free investment. Although there is no true risk-free
investment, treasury bills are often used to represent the risk-free return in the Treynor ratio.
Risk in the Treynor ratio refers to systematic risk as measured by a portfolio's beta. Beta
measures the tendency of a portfolio's return to change in response to changes in return for
the overall market.TheTreynor ratio was developed by Jack Treynor, an American economist
who was one of the inventors of the Capital Asset Pricing Model (CAPM).

 Jensen Alpha’s:
The Jensen’s Alpha formula was used for the first time by Michael Jensen back in 1986.
Jensen is a well-known economist who specializes in dealing with financial economics.
Initially, he discovered this measure to track the performance of a hedge fund manager. The
purpose of this formula was to gauge whether hedge fund managers can outperform markets
on a consistent basis. After a comprehensive study, Jensen’s results stated that the events of
hedge fund managers outperforming the markets were quite rare.

 Trend Analysis:
Trend analysis is a technique used in technical analysis that attempts to predict the future
stock price movements based on recently observed trend data. Trend analysis is based on the
idea that what has happened in the past gives traders an idea of what will happen in the
future. There are three main types of trends: short-intermediate- and long-term.

RISK MEASURES
 Standard Deviation
It is a measure of variability in returns. It is the square root of variance.The higher the
standard deviation,higher will be the risk and vice versa.Standard deviation is a number used
to tell how measurements for a group and spread out form the average(mean),expected
value.A low standard deviation means most of the numbers are very close the average, a high
standard deviation means that the numbesa are spread out.while standard deviation does
measure how far typically values tend to be from the mean,other measure are available,an
example is the mean absolute deviation,which might be considered a more direct measure of
average distance compared to the root means suare distance inhernet in standard deviation.
 Beta
It is the diversifiable risk that indicates the variability in the portfolio return caused by
changes in the economy of the market.The percentage changes in the price of the market
index.
NƩXY-ƩXƩY
β=
NƩX²-N(Ʃ)²
 β =1.0 indicates fund with average risk and
would move precisely in line with the market.An index fund would have beta close to
1.
 β >1.0 indicates fund with above average risk.Its returns would be more volatile
thanthe market return i.e .the fund is more aggressive than market.
 β<1.0 indicates fund with below average risk variability in its return would be
comparatively lower than the market variability i.e.the fund is more conservative.
 β<0(Negative Beta) means an inverse relationship between the fund and
market,implying the fund return moves in the direction opposite to that of market.
 3.2 DATA ANALYSIS AND INTERPRETATION
TABLE 3.2.1 RISK AND RETURN OF SMALL CAP FUND-GROWTH

RETURN ON STANDARD
FUND HOUSE PORTFOLIO DEVIATION BETA

Aditya Birla Sunlife Mutual Fund -0.3422 0.36119 4.16788

Hdfc Mutual Fund -0.0312 0.00244 -0.0326

Icici Prudential Mutual Fund 0.0108 0.00302 -0.0494

Reliance Mutual Fund -0.0106 0.00320 -0.0558

Sbi Mutual Fund 0.0089 0.003143 0.04807
FINDINGS
The above analysis shows that the risk and return performance of varioussmall cap funds
over the period of past one year january1 2018 to December 31 2018.The return performance
of adityabirlasunlifesmallcap fund is at -0.3422 and HDFC Smallcap fund is at -0.0312 and
ICICI Prudential Mutual fund is at 0.0108 and Reliance smallcap fund is at -0.0106 and SBI
smallcap fund is at 0.0089.Beta value of Adityabirlasunlifesmallcap fund is above 1.It
indicates fund’s stock return is more volatile than the market return.
The standard deviation indicates the higher standard deviation indicates higher risk, lower
Standard Deviation indicates lower in risk. The evident thatover the study period the Standard
Deviation is higher inAdityaBirlaSunlifeSmallcapfund with 0.36119 and lower in HDFC
Smallcap fund with 0.00244.
INFERENCE
It is inferred that the performance of ICICI Prudential Smallcap fund has goodreturn and
Hdfcsmallcap fund is supposed to have less risk. The volatility and risk of
Adityabirlasunlifesmallcap is relatively very high when compared to that of other small cap
funds.
3.2.2.TABLE SHOWING THE RISK AND RETURN OF MIDCAP FUND-GROWTH

FUND HOUSE RETURN ON STANDARD BETA

PORTFOLIO DEVIATION
Aditya Birla Sunlife Mutual Fund -0.0133 0.0485 -0.809

Hdfc Mutual Fund -0.0052 0.00282 0.0504

Icici Prudential Mutual Fund -0.0042 0.0021 0.0332
Reliance Mutual Fund 0.00475 0.00434 -0.045
Sbi Mutual Fund -0.0078 0.00299 0.0282
FINDINGS
The above analysis shows that the risk and return performance of various Midcapfunds over
the period of past one year January1 2018 to December 31 2018.The return performance of
Adityabirlasunlife midcap fund is at -0.0133 and HDFC midcap fund is at -0.0052 and ICICI
Prudential Midcap fund is at 0-0.0042 and Reliance Midcap fund is at 0.00475 and SBI
Midcap fund is at-0.0078.
Beta value of HDFC Midcap fund is less than 1.It indicates fund’s stock return is less volatile
than the market return.The evident that over the study period the Standard Deviation is higher
in AdityaBirlaSunlifemidcap fund with 0.0485 and lower in ICICI Prudential midcap fund
with 0.0021.
INFERENCE
It is inferred that the performance of Reliance midcap fund has good return and Icici midcap
fund supposed to have less risk.The volatility and risk of HDFC Midcap fund is relatively
very high when compared to that of other small cap funds.

3.2.3.TABLE SHOWING THE RISK AND RETURN OF LARGECAP FUND-

GROWTH
FUND HOUSE RETURN ON STANDARD BETA
PORTFOLIO DEVIATION
AdityabirlaFrontlineMutualFund -0.0013 0.0021 -0.033

Hdfc Mutual Fund -0.0029 0.0022 -0.038

Icici Mutual Fund -0.0041 0.0019 0.0412

Reliance Mutual Fund 0.0012 0.0022 0.0391

Sbi Mutual Fund 0.7920 0.2743 -2.891

FINDINGS
The above analysis shows that the risk and return performance of various Largecapfunds
over the period of past one year january1 2018 to December 31 2018.The return performance
of andAdityabirlaLargecap fund is at -0.0013 and HDFC largecap fund is at -0.0029 and
ICICI Prudential bluechip fund is at -0.0041 and Reliance largeap fund is at 0.0012 and SBI
Bluechip fund is at 0.7920.
Beta value of SBI Bluechipfund is less than 0.It indicates fund has an inverse relationship
between the fund and the market.The evident that over the study period the Standard
Deviation is higher SBI largecap fund with 0.2743 and lower in ICICI prudential bluechip
fund with 0.0019.
INFERENCE
It is inferred that the performance of SBIBluechipfund has good return and AdityaBirla
Sunlife Frontline Equity Fund is supposed to have less risk.The volatility and risk of SBI
Bluechip Fund is relatively very low when compared to that of other small cap funds.

TABLE 3.2.4. SMALLCAP SHARPE PERFORMANCE MEASURE- SHARPE INDEX

VALUE RANK
FUND HOUSE
 1
Aditya birlasunlife mutualfund 1.0098
5
HDFCmutual fund 9.3129
7.8020 4
ICICI prudential mutual fund
7.3458 2
Reliance mutual fund

-7.4424 3
SBI mutual fund

FINDINGS:
Sharpe ratio greater than 1 is considered acceptable to good by investors . From the above
table it is found that .ADITYA BIRLASUNLIFE SMALLCAP FUND has a relative high
performance with minimum risk providing average return of 1.0098 ratio than the other
schemes and HDFC SMALLCAP FUND has performed lower with maximum risk providing-
9.3129 ratio. Negative sharpe ratio is found when excess return is negative.
INFERENCE
Adityabirlasunlifesmallcap fund had performed better in 2018 compared to all the other
schemes. Other schemes such as HDFC Mutual fund,ICICI Prudential MutualFund,Reliance
Mutual Fund,SBI Mutual Fund are found to be negative and had performed worse in 2018.

CHART 3.2.4. SMALLCAP SHARPE PERFORMANCE MEASURE- SHARPE

INDEX

TABLE 3.2.5. MIDCAP FUND SHARPE PERFORMANCE MEASURE - - SHARPE

INDEX
 FUND HOUSE VALUE RANK
Aditya birlasunlife mutualfund 0.7376 1
HDFCmutual fund 8.1395 3
ICICI prudential mutual fund 10.573 5
Reliance mutual fund 5.0725 2
SBI mutual fund 8.2428 1
FINDINGS
ADITYABIRLA SUNLIFE MIDCAP FUND has performed higher with minimum risk
providing average return of 0.7376 ratio than the other schemes and ICICI PRUDENTIAL
SMALLCAP FUND has performed lower with maximum risk providing -10.573 ratio.
Negative sharpe ratio is found when excess return is negative.
INFERENCE
According to the midcap fund analysis, ,it is inferred that AdityaBirlaSunlife Midcap fund
had performed better in 2018 compared to all the other schemes. Other schemes such as
HDFC Mutual fund,ICICI Prudential MutualFund,Reliance Mutual Fund,SBI Mutual Fund
are found to be negative and had performed worse in 2018.

CHART 3.2.5. MIDCAP FUND SHARPE PERFORMANCE MEASURE - - SHARPE

INDEX

TABLE 3.2.6 LARGECAP FUND SHARPE PERFORMANCE MEASURE-SHARPE

INDEX
FUND HOUSE VALUE RANK
Aditya birlasunlife mutualfund -10.471 4
HDFCmutual fund -9.9318 3
 ICICI prudential mutual fund 11.550 5
Reliance mutual fund 9.8584 2
SBI mutual fund 0.20670 1

FINDINGS
SBI MUTUAL FUND has performed higher with minimum risk providing average return of
0.206070 ratio than the other schemes and ICICI PRUDENTIAL MUTUAL FUND has
performed lower with maximum risk providing -11.550 ratio.
INFERENCE
According to largecap fund analysis, A value between 0 and 1 signifies that the returns
derived are better than the risk-free rate, but their excess risks exceed their excess returns. it
is inferred that sbilargecap fund had performed better in 2018 compared to all the other
schemes.Negative sharpe ratio is found when excess return is negative.Therefore the other
schemes such as HDFC Mutual fund,ICICI Prudential MutualFund,Reliance Mutual
Fund,AdityaBirlaSunlife Mutual Fund are found to be negative and had performed worse in
2018.
CHART 3.2.6. LARGECAP FUND SHARPE PERFORMANCE MEASURE -
SHARPE INDEX

TABLE3.2.7. SMALLCAP FUND TREYNOR PERFORMANCE MEASURE-

TREYNOR INDEX

FUND HOUSE VALUE RANK

ADITYA BIRLA SUNLIFE MUTUAL FUND -0.875 4

 HDFC MUTUALFUND 0.6983 1

ICICI PRUDENTIAL MUTUAL FUND 0.4772 2

RELIANCE MUTUAL FUND 0.4222 3

SBI MUTUAL FUND -0.4866 5

FINDINGS
HDFC SMALLCAP FUND has performed higher with minimum risk providing 0.6983
ratio than the otherschemes and SBI SMALLCAP FUND has performed lower with
maximum risk providing -0.4866 ratio.
INFERENCE
According to the smallcap fund analysis, It is inferred that HDFC smallcap fund had
performed better in 2018 compared to all the other schemes.Negative treynor ratio is found
when beta and riskfree rate is negative.Aditya birla Sunlife Mutual fund and SBI Mutual fund
is supposed to have negative beta value that results in negative treynor ratio which indicates
that the performance of the investment return in both the funds were worse.

CHART 3.2.7.MIDCAP FUND TREYNOR PERFORMANCE MEASURE –

TREYNOR INDEX

TABLE 3.2.8 MIDCAP FUND TREYNOR PERFORMANCE MEASURE- TREYNOR

INDEX
FUND HOUSE VALUE RANK

Aditya Birla Sunlife Mutual Fund 0.0442 3

Hdfc Mutualfund -0.4561 4

Icici Prudential Mutual Fund -0.6900 5

Reliance Mutual Fund 0.5021 2

Sbi Mutual Fund 7.794 1

FINDINGS
SBI MIDCAP FUND has performed higher with minimum risk providing 0.7376 ratio than
the other schemes and ICICI PRUDENTIAL MIDCAP FUND has performed lower with
maximum risk providing -0.6900 ratio. . Negative treynor ratio is found when beta and
riskfree rate is negative.

INFERENCE
According to the midcap fund analysis, it is inferred that SBI midcap fund had performed
better in 2018 compared to all the other schemes. HDFC Midcap Opportunities fund and
ICICI Prudential Midcap fund is supposed to have negative beta value that results in
negative treynor ratio which indicates that the performance of the investment return in both
the funds were worse.

CHART 3.2.8 MIDCAP FUND TREYNOR PERFORMANCE MEASURE- TREYNOR

INDEX

TABLE 3.2.89 LARGECAP FUND TREYNOR PERFORMANCE MEASURE-

TREYNOR INDEX
 FUND HOUSE VALUE RANK

Aditya Birla Sunlife Mutual Fund 0.6665 1

Hdfc Mutualfund 0.5925 2

Icici Prudential Mutual Fund -0.5378 5

Reliance Mutual Fund 0.5729 3

Sbi Mutual Fund 0.0195 4

FINDINGS
ADITYA BIRLA SUNLIFEFRONTLINE EQUITY FUND has performed higher with
minimum risk providing 0.6665 ratio than the other schemes and ICICI PRUDENTIAL
BLUECHIP FUND has performed lower with maximum risk providing -0.5378 ratio
.
INFERENCE
According to the largecap fund analysis,it is inferred that ADITYABIRLASUNLIFE largecap
fund had performed better in 2018 compared to all the other schemes.Negative treynor ratio
is found when beta and riskfree rate is negative. ICICI Prudential Bluechip fundis supposed
to have negative beta value that results in negative treynor ratio which indicates that the
performance of the investment return in the fund was worse.

CHART 3.2.9 LARGECAP FUND TREYNOR PERFORMANCE MEASURE-

TREYNOR INDEX

TABLE 3.2.10. SMALLCAP FUND JENSEN PERFORMANCE MEASURE

- JENSEN INDEX
 FUND HOUSE VALUE RANK

Aditya Birla Sunlife Mutual Fund -0.4409 5

Hdfc Mutualfund -0.0222 1
Icici Prudential Mutual Fund -0.0226 3
Reliance Mutual Fund -0.0225 2
Sbi Mutual Fund -0.2428 4

FINDINGS
HDFC SMALLCAP FUND has performed higher with minimum risk providing - 0.222 ratio
than the other schemes and ADITYABIRLA SUNLIFE SMALLCAP FUND has performed
lower with maximum risk providing -0.4866 ratio. Negative alpha indicates that the portfolio
has not earned its required return and a negative alpha value of 1.0 indicates an
underperformance of 1 percent.
INFERENCE
According to the smallcap fund analysis, It is inferred that HDFC smallcap fund had
performed better in 2018 compared to all the other schemes. A fund's return and its risk both
contribute to its alpha. Further, if a fund has a high beta, it's quite possible for it to have a
negative alpha. HDFC Smallcap Fund has not earned its actual required return and the other
funds’ performance is respectively considered to be far less than HDFC Smallcap fund.

CHART 3.2.10. SMALLCAP FUND JENSEN PERFORMANCE MEASURE

- JENSEN INDEX

TABLE 3.2.11 MIDCAP FUND JENSEN PERFORMANCE MEASURE-JENSEN

INDEX
 FUND HOUSE VALUE RANK

Aditya Birla Sunlife Mutual Fund -0.021 1

Hdfc Mutualfund -0.024 3

Icici Prudential Mutual Fund -0.025 4

Reliance Mutual Fund -0.030 5
Sbi Mutual Fund -0.023 2

FINDINGS
ADITYA BIRLA SUNLIFE MIDCAP FUND has performed higher with minimum risk
providing 0.21ratio than the other schemes and RELIANCE MIDCAP FUND has performed
lower with maximum risk providing -0.6900 ratio.
INFERENCE
According to the midcapfundanalysis,it is inferred that ADITYABIRLA SUNLIFE
midcapfund had performed better in 2018 compared to all the other schemes.Negative alpha
indicates that the portfolio has not earned its required return. Therefore,AdityaBirla Sunlife
Midcap Fund has not earned its actual required return and the other fund’s respectively
considered to be far less than AdityaBirla Sunlife Midcap Fund.

CHART 3.2.11 MIDCAP FUND JENSEN PERFORMANCE MEASURE-JENSEN

INDEX

TABLE 3.2.12 LARGECAP FUND JENSEN PERFORMANCE MEASURE-JENSEN

INDEX
 FUND HOUSE VALUE RANK

Aditya Birla Sunlife Mutual Fund -0.022 3

Hdfc Mutualfund -0.0219 1

Icici Prudential Mutual Fund -0.0234 4

Reliance Mutual Fund -0.0217 2

Sbi Mutual Fund 0.1253 5

FINDINGS
ADITYA BIRLA SUNLIFE MUTUAL FUND has performed higher with minimum risk
providing 0.6665 ratio than the other schemes and ICICIPRUDENTIAL MUTUAL FUND
has performed lower with maximum risk providing -0.5378 ratio.
INFERENCE
According to the largecap fund analysis,it is inferred that ADITYABIRLA frontline equity
fund had performed better in 2018 compared to all the other schemes.Negative alpha
indicates that the portfolio has not earned its required return. Therefore,AdityaBirla Sunlife
Midcap Fund has not earned its actual required return and the other fund’s respectively
considered to be far less than AdityaBirla Sunlife Midcap Fund.Whereas Reliance Largecap
Fund also had performed better closely related with AdityaBirlaSunlife largecap Fund.

CHART 3.2.12 LARGECAP FUND JENSEN PERFORMANCE MEASURE-JENSEN

INDEX

TABLE 3.2.13 MONTHLY RETURNS OF ADITYABIRLA SUNLIFE SMALLCAP

AND S&P BSE SENSEX-TREND ANALYSIS
 DATE ADITYA BIRLA S&P BSE
SUNLIFE SENSEX
SMALLCAP FUND
JAN 18
-0.03087 0.05577
FEB 18
0.08277 0.066479
MAR 18
-0.10268 0.004608
APR 18
-0.0481 0.002896
MAY 18
-0.08859 0.06162
JUN 18
-0.93065 0.027615
JUL 18
-0.92394 -0.06257
AUG 18 -0.92371 -0.04927
SEP 18
-0.23132 0.05087
OCT 18 0.26846 -0.00348
NOV 18
-0.25123 -0.00286
DEC 18
0.22483 -0.04952
INFERENCE
In the above analysis we can find that the returns on this particular fund is high in the month
of October even when the performance of the market is in negative trend. Moving with trend,
and not against them, will lead to profit for an investor. In certain periods the movement of
ADITYABIRLA SUNLIFE SMALLCAP is not found to be in pace with the market index.
and hence supposed to have an inverse relationship. Moreover, the market volatility is high
and it had affected the stock return performance of adityabirlasunlifesmallcap fund.
CHART 3.2.13 MONTHLY RETURNS OF ADITYABIRLA SUNLIFE SMALLCAP
AND S&P BSE SENSEX-TREND ANALYSIS

TABLE 3.2.14 MONTHLY RETURNS OF HDFC SMALLCAP FUND ND S&P BSE

SENSEX-TREND ANALYSIS
 DATE HDFC S&P BSE
SMALLCAP SENSEX
FUND
JAN 18 -0.00043 0.0055
FEB 18 0.00161 0.0664
MAR 18 -0.00176 0.0046
APR 18 0.00400 0.00286
MAY 18 -0.00176 0.0616
JUN 18 -0.00295 0.0276
JUL 18 0.00152 -0.0625
AUG 18 0.00175 -0.0492
SEP 18 -0.0054 0.0508
OCT 18 0.00007 -0.0034
NOV 18 0.00039 -0.0028
DEC 18 0.00074 -0.0495

INFERENCE
In the above analysis we can find that the returns on this particular fund is high in the month
of April even when the performance of the market is in positive trend. In certain periods the
movement of HDFC SMALLCAP FUND is not found to be in pace with the market index.
And hence supposed to have an inverse relationship. Moreover ,the market volatility is high
and it had also affected the stock return performance of HDFC Smallcap fund.

CHART 3.2.14 MONTHLY RETURNS OF ADITYABIRLA SUNLIFE SMALLCAP

AND S&P BSE SENSEX-TREND ANALYSIS
TABLE 3.2.15 MONTHLY RETURNS OF ICICI PRUDENTIAL SMALLCAP FUND
AND S&P BSE SENSEX
 DATE ICICI PRUDENTIAL S&P BSE
SMALLCAP FUND SENSEX
JAN 18 0.000128 0.005567
FEB 18 -0.00199 0.066478
MAR 18 -0.00254 0.004608
APR 18 0.00225 0.002862
MAY 18 -0.00299 0.061629
JUN 18 -0.00418 0.027615
JUL 18 0.00149 -0.06257
AUG 18 0.00107 -0.04927
SEP 18 -0.00813 0.05087
OCT 18 -0.00051 -0.00348
NOV 18 0.001294 -0.00286
DEC 18 0.00111 -0.04952

INFERENCE
In the above analysis we can find that the returns on this particular fund is high in the month
of Aprilwhen the performance of the market is in positive trend. In certain periods the
movement of ICICI PRUDENTIAL Smallcap Fund. is not found to be in pace with the
market index. And hence supposed to have an inverse relationship.The market volatility is
high and it had also affected the stock return performance of ICICI PRUDENTIAL
Smallcap Fund.
CHART 3.2.15 MONTHLY RETURNS OF ADITYABIRLA SUNLIFE SMALLCAP
AND S&P BSE SENSEX-TREND ANALYSIS

DATE RELIANCE S&P BSE

SMALLCAP SENSEX
FUND
JAN 18 -0.00103 0.005567
TABLE FEB 18 -0.0046 0.066478 3.2.16 MONTHLY RETURNS
OF MAR 18 -0.00305 0.004608 RELIANCE SMALLCAP
FUND AND APR 18 0.00382 0.002862 S&P BSE SENSEX-TREND
ANALYSIS MAY 18 -0.00291 0.061629
JUN 18 -0.0028 0.027615
JUL 18 0.001184 -0.06257
AUG 18 0.003019 -0.04927
SEP 18 -0.00725 0.05087
OCT 18 -0.00044 -0.00348
NOV 18 0.000909 -0.00286
DEC 18
0.000389 -0.04952
INFERENCE
In the above analysis we can find that the returns on this particular fund is high in the month
of August even when the performance of the market is in negative trend. In certain periods
the movement of RELIANCE Smallcap Fund. is not found to be in pace with the market
index. And hence supposed to have an inverse relationship.The market volatility is high and
it had also affected the stock return performance of ICICI PRUDENTIAL Smallcap Fund.

CHART 3.2.16 MONTHLY RETURNS OF RELIANCE SMALLCAP FUND AND S&P

BSE SENSEX-TREND ANALYSIS
TABLE 3.2.17 MONTHLY RETURNS OF SBI SMALLCAP FUND AND S&P BSE
SENSEX-TREND ANALYSIS

DATE SBI S&P BSE

SMALLCAP SENSEX
FUND
JAN 18 0.001054 0.005567
 FEB 18 0.000876 0.066478
MAR 18 -0.0014 0.004608
APR 18 -0.00661 0.002862
MAY 18 0.002884 0.061629
JUN 18 0.002133 0.02615
JUL 18 -0.00408 -0.06257
AUG 18 -0.00291 -0.04927
SEP 18 0.003844 0.05087
OCT 18 -0.00361 -0.00348
NOV 18 -0.00205 -0.00286
DEC 18 -0.00084 -0.04952

INFERENCE
In the above analysis we can find that the returns on this particular fund is high in the month
of September when the performance of the market is in positive trend. In certain periods the
movement of SBI BSmallcap Fund. is not found to be in pace with the market index. And
hence supposed to have an inverse relationship The market volatility is high and it had also
affected the stock return performance of SBI Smallcap fund.

CHART 3.2.17 MONTHLY RETURNS OF SBI SMALLCAP FUND AND S&P BSE
SENSEX-TREND ANALYSIS
TABLE 3.2.18 MONTHLY RETURNS OF ADITYA BIRLA SUNLIFE MIDCAP FUND
AND S&P BSE SENSEX-TREND ANALYSIS
 DATE ADITYA BIRLA S&P
SUNLIFEMIDCAP BSE
FUND SENSEX
JAN 18
-0.03491 0.05567
FEB 18
-0.03642 0.06647
MAR 18
-0.03387 0.004608
APR 18
0.060936 0.002862
MAY 18
-0.04762 0.061629
JUN 18
-0.03956 0.027615
JUL 18
0.034468 -0.06257
AUG 18
0.024182 -0.04927
SEP 18
-0.12003 0.05087
OCT 18
-0.00416 -0.00348
NOV 18
0.017235 -0.00286
DEC 18
0.019588 -0.04952

INFERENCE
In the above analysis we can find that the returns on this particular fund is high in the month
of Aprilwhen the performance of the market is in positive trend. In certain periods the
movement AdityaBirlaSunlife Midcap Fund is not found to be in pace with the market index.
And hence supposed to have an inverse relationship The market volatility is high and it had
also affected the stock return performance of AdityaBirlaSunlife Midcap Fund.

CHART 3.2.18 MONTHLY RETURNS OF ADITYA BIRLA SUNLIFE MIDCAP FUND

AND S&P BSE SENSEX-TREND ANALYSIS
TABLE 3.2.19 MONTHLY RETURNS OF HDFC MIDCAP OPPORTUNITIES FUND
AND NIFTY 50-TREND ANALYSIS

DATE HDFC MIDCAP NIFTY 50

 OPPORTUNITIES
FUND
JAN 18 -0.0012 -0.0356
FEB 18 -0.00135 -0.0485
MAR 18 -0.0015 -0.03613
APR 18 0.004016 0.06186
MAY 18 -0.00239 -0.00029
JUN 18 -0.00196 -0.00203
JUL 18 0.002074 0.05993
AUG 18 0.001455 0.0285
SEP 18 -0.00715 -0.06421
OCT 18 -0.00036 -0.04975
NOV 18
0.000723 0.04719
DEC 18 0.001374 -0.0013

INFERENCE
In the above analysis we can find that the returns on this particular fund is high in the month
of Aprilwhen the performance of the market is in positive trend. In certain periods the
movement HDFC Midcap Opportunities Fund is not found to be in pace with the market
index. And hence supposed to have an inverse relationship .The market volatility is high and
it had also affected the stock return performance of HDFC Midcap opportunities Fund.

CHART 3.2.19 MONTHLY RETURNS OF HDFC MIDCAP OPPORTUNITIES FUND

AND NIFTY 50-TREND ANALYSIS
TABLE 3.2.20 MONTHLY RETURNS OF ICICI PRUDENTIAL MIDCAP FUND AND
S&P BSE SENSEX

DATE ICICI S&P

PRUDENTIAL BSE
MIDCAP FUND SENSEX
JAN 18
0.00112 0.005567
FEB 18
0.001711 0.066478
MAR 18
-0.00024 0.004608
 APR 18
-0.00474 0.002862
MAY 18
0.000738 0.061629
JUN 18
0.00173 0.027615
JUL 18
-0.00254 -0.06257
AUG 18
-0.00188 -0.04927
SEP 18
0.00278 0.05087
OCT 18
-0.00212 -0.00348
NOV 18
-0.00062 -0.00286
DEC 18
-0.00103 -0.04952

INFERENCE
In the above analysis, we can find that the returns on this particular fund is high in the month
of Septemberwhen the performance of the market is in positive trend. In certain periods the
movement of ICICI Prudential Midcap Fund is not found to be in pace with the market index.
And hence supposed to have an inverse relationship .The market volatility is high and it had
also affected the stock return performance of ICICI Prudential Midcap Fund.

CHART 3.2.20 MONTHLY RETURNS OF ICICI PRUDENTIAL MIDCAP FUND

AND S&P BSE SENSEX
 DATE RELIANCE S&P BSE
FOCUSED EUITY SENSEX
FUND
JAN 18
-0.00061 0.005567
FEB 18
-0.00221 0.006648
TABLE 3.2.21 MAR 18 MONTHLY
-0.00275 0.004608
RETURNS OF APR 18 RELIANCE
0.002371 0.002862
FOCUSED MAY 18 EQUITY FUND
-0.00106 0.061629
AND S&P BSE JUN 18 SENSEX-TREND
-0.00168 0.027615
ANALYSIS JUL 18
0.002456 -0.06257
AUG 18
0.000694 -0.04927
SEP18
-0.00587 0.05087
OCT 18
0.011991 -0.00348
NOV 18
0.001446 -0.00286
DEC 18
0.000925 -0.04952
INFERENCE
In the above analysis, we can find that the returns on this particular fund is high in the month
of October even when the performance of the market is in negative trend. In certain periods
the movement of Reliance Focused Equity fund. is not found to be in pace with the market
index. And hence supposed to have an inverse relationship .The market volatility is high and
it had also affected the stock return performance of Reliance Focused Equity fund.
CHART 3.2.21 MONTHLY RETURNS OF RELIANCE FOCUSED EQUITY FUND
AND S&P BSE SENSEX-TREND ANALYSIS

TABLE 3.2.22 MONTHLY RETURNS OF SBI MAGNUM MIDCAP FUND AND S&P
BSE SENSEX-TREND ANALYSIS

DATE SBI S&P BSE

 MAGNUM SENSEX
MIDCAP
FUND
JAN 18
-0.00157 0.005567
FEB 18
-0.00118 0.66478
MAR 18
-0.00138 0.004608
APR 18 0.002523 0.002862
MAY 18 -0.00391 0.061629
JUN 18 -0.0026 0.027615
JUL 18 0.00166 -0.06257
AUG 18 0.001996 -0.04927
SEP 18 -0.00707 0.05087
OCT 18
-0.00052 -0.00348
NOV 18
0.001687 -0.00286
DEC 18
0.001008 -0.04952

INFERENCE
In the above analysis, we can find that the returns on this particular fund is high in the month
of August even when the performance of the market is in negative trend. As an average
thisfund has performed with average fluctuation in fund return. In certain periods the
movement of. of SBI Magnum Midcap Fund.is not found to be in pace with the market
index. And hence supposed to have an inverse relationship .The market volatility is high and
it had also affected the stock return performance of SBI Magnum Midcap Fund.
CHART 3.2.22 MONTHLY RETURNS OF SBI MAGNUM MIDCAP FUND AND S&P
BSE SENSEX-TREND ANALYSIS

TABLE 3.2.23 MONTHLY RETURNS OF ADITYA BIRLA SUNLIFE FRONTLINE

EQUITY FUND AND S&P BSE SENSEX

DATE ADITYA BIRLA FRONTLINE S&P BSE

EQUITY FUND SENSEX
 JAN 18 0.000844 0.005567
FEB 18 -0.00246 0.066478
MAR 18 -0.00157 0.004608
APR 18 0.002615 0.002862
MAY 18 -0.00068 0.061629
JUN 18 -0.00066 0.027615
JUL 18 0.002349 -0.06257
AUG 18 0.001336 -0.04927
SEP 18 -0.0047 0.05087
OCT 18 -0.00104 -0.00348
NOV 18 0.002001 -0.00286
DEC 18 0.000392 -0.04952

INFERENCE

In the above analysis, we can find that the returns on this particular fund is high in the month
of November even when the performance of the market is in negative trend. In certain
periods the movement of Aditya Birla Frontline equity Fund is not found to be in pace with
the market index. And hence supposed to have an inverse relationship . As an average this
fund has performed with average fluctuation in fund return.The market volatility is high and
it had also affected the stock return performance of Aditya Birla Frontline equity Fund.

CHART 3.2.23 MONTHLY RETURNS OF ADITYA BIRLA SUNLIFE FRONTLINE

EQUITY FUND AND S&P BSE SENSEX
TABLE 3.2.24 MONTHLY RETURNS OF HDFC LARGECAP FUND AND S&P BSE
SENSEX

DATE HDFC S&P BSE

LARGECAP SENSEX
FUND
Jan-18 0.001785 0.005567
Feb-18 -0.0034 0.066478
Mar-18 -0.00261 0.004608
 Apr-18 0.002409 0.002862
May18 -0.00039 0.067629
Jun-18 -0.00099 0.027615
Jul-18 0.0029 -0.06257
Aug-18 0.002462 -0.04927
Sep-18 -0.00347 0.05087
Oct-18 -0.00057 -0.00348
Nov-18 0.00074 -0.00286
Dec-18 0.00084 -0.04952

INFERENCE

In the above analysis, we can find that the returns on this particular fund is high in the month
of July even when the performance of the market is in negative trend. In certain periods the
movement of HDFC largecap Fund is not found to be in pace with the market index. And
hence supposed to have an inverse relationship. As an average this fund has performed with
average fluctuation in fund return.The market volatility is high and it had also affected the
stock return performance of HDFC largecap Fund.

CHART 3.2.24 MONTHLY RETURNS OF HDFC LARGECAP FUND AND S&P BSE
SENSEX
TABLE 3.2.25 MONTHLY RETURNS OF ICICI PRUDENTIAL BLUECHIP FUND
AND NIFTY 50-TREND ANALYSIS

DATE ICICI PRUDENTIAL NIFTY 50

BLUECHIP FUND

JAN 18 0.001064 -0.0356

FEB 18 -0.00225 -0.0485
MAR 18 -0.00167 -0.03613
APR 18 0.002372 0.06186
 MAY 18 -0.00017 -0.00029
JUN 18 -0.00082 -0.00203
JUL 18 0.002378 0.05993
AUG 18 0.001946 0.0285
SEP 18 -0.00371 -0.06421
OCT 18 -0.00133 -0.04975
NOV 18 0.001045 0.04719
DEC 18 0.000715 -0.0013

INFERENCE
In the above analysis, we can find that the returns on this particular fund is high in the month
of Julywhen the performance of the market is in positive trend. In certain periods the
movement of ICICI Prudential Bluechip Fund is not found to be in pace with the market
index. And hence supposed to have an inverse relationship. As an average this fund has
performed with average fluctuation in fund return.The market volatility is high and it had
also affected the stock return performance of ICICI Prudential Bluechip Fund.

CHART 3.2.25 MONTHLY RETURNS OF ICICI PRUDENTIAL BLUECHIP FUND

AND NIFTY 50-TREND ANALYSIS
TABLE 3.2.26 MONTHLY RETURNS OF RELIANCE LARGECAP FUND AND S&P
BSE SENSEX

DATE RELIANCE S&P BSE

LARGECAP SENSEX
FUND
JAN 18 0.001162 0.005567
FEB 18 -0.00243 0.066478
 MAR 18 -0.00244 0.004608
APR 18 0.002706 0.002862
MAY 18 -0.00097 0.061629
JUN 18 -0.00076 0.027615
JUL 18 0.00271 -0.06257
AUG 18 0.002598 -0.04927
SEP 18 -0.00432 0.05087
OCT 18 -0.0005 -0.00348
NOV 18 0.001337 -0.00286
DEC 18 0.00073 -0.04952

INFERENCE
In the above analysis, we can find that the returns on this particular fund is high in the month
of August even when the performance of the market is in negativetrend. In certain periods
the movement of Reliance largecap fund is not found to be in pace with the market index.
And hence supposed to have an inverse relationship. As an average this fund has performed
with average fluctuation in fund return.The market volatility is high and it had also affected
the stock return performance of Reliance largecap fund.

CHART 3.2.26 MONTHLY RETURNS OF RELIANCE LARGECAP FUND AND S&P

BSE SENSEX
TABLE 3.2.27 MONTHLY RETURNS OF SBI BLUECHIP FUND AND S&P BSE
SENSEX

DATE SBI BLUECHIP S&P BSE

FUND SENSEX
Jan 18 0.00052 0.005567
Feb 18
-0.00173 0.006648
Mar 18
-0.00087 0.004608
Apr 18
0.00275 0.002862
May 18
-0.00095 0.061629
 Jun 18
0.0012 0.027615
Jul 18
0.00207 -0.06257
Aug 18
0.00108 -0.04927
Sep 18
-0.00491 0.05087
Oct 18
-0.00134 -0.00348
Nov 18
0.00235 -0.00286
Dec 18
0.95024 -0.04952

INFERENCE
In the above analysis, we can find that the returns on this particular fund is very high in the
month of December even when the performance of the market is in negativetrend. In certain
periods the movement of SBI Bluechip Fund is not found to be in pace with the market index.
And hence supposed to have an inverse relationship. As an average this fund has
performed.The market volatility is high and it had also affected the stock return performance
of SBI Bluechip Fund.

CHART 3.2.27 MONTHLY RETURNS OF SBI BLUECHIP FUND AND S&P BSE
SENSEX
 3.3 SUMMARY OF FINDINGS

 It is found that the performance of ICICI Prudential Smallcap fund has goodreturn
and Hdfcsmallcap fund is supposed to have less risk. The volatility and risk of
Adityabirlasunlifesmallcap is relatively very high when compared to that of other
small cap funds.

 It is evident that the performance of Reliance midcap fund has good return and Icici
midcap fund supposed to have less risk.The volatility and risk of HDFC Midcap fund
is relatively very high when compared to that of other small cap funds.

 It is found that the performance of SBIBluechipfund has good return and AdityaBirla
Sunlife Frontline Equity Fund is supposed to have less risk.The volatility and risk of
SBI Bluechip Fund is relatively very low when compared to that of other small cap
funds.

 According to smallcap fund analysis,Adityabirlasunlifesmallcap fund had performed

better in 2018 compared to all the other schemes. Other schemes such as HDFC
Mutual fund,ICICI Prudential MutualFund,Reliance Mutual Fund,SBI Mutual Fund
are found to be negative and had performed worse in 2018.

 According to the midcap fund analysis, ,it is found that AdityaBirlaSunlife Midcap
fund had performed better in 2018 compared to all the other schemes. Other schemes
such as HDFC Mutual fund,ICICI Prudential MutualFund,Reliance Mutual Fund,SBI
Mutual Fund are found to be negative and had performed worse in 2018.

 According to largecap fund analysis, it is evident that sbilargecap fund had performed
better in 2018 compared to all the other schemes.Therefore the other schemes such as
HDFC Mutual fund,ICICI Prudential MutualFund,Reliance Mutual
Fund,AdityaBirlaSunlife Mutual Fund are found to be negative and had performed
worse in 2018.
 According to the smallcap fund analysis, It is analysed that HDFC smallcap fund had
performed better in 2018 compared to all the other schemes.Aditya birla Sunlife
Mutual fund and SBI Mutual fund is supposed to have negative beta value .

 According to the midcap fund analysis, it is found that SBI midcap fund had
performed better in 2018 compared to all the other schemes. HDFC Midcap
Opportunities fund and ICICI Prudential Midcap fund is supposed to have negative
beta value which indicates that the performance of the investment return in both the
funds were worse.

 According to the largecap fund analysis,it is found that ADITYABIRLASUNLIFE

largecap fund had performed better in 2018 compared to all the other schemes. ICICI
Prudential Bluechip fundis supposed to have negative beta value that results in
negative treynor ratio which indicates that the performance of the investment return in
the fund was worse.

 According to the smallcap fund analysis, It is evident that.,HDFC Smallcap Fund has
not earned its actual required return and the other funds’ performance is respectively
considered to be far less than HDFC Smallcap fund.

 According to the midcapfund analysis,it is found that ADITYABIRLA SUNLIFE

midcapfund had performed better in 2018 compared to all the other schemes.
Therefore,AdityaBirla Sunlife Midcap Fund has not earned its actual required return
and the other fund’s respectively considered to be far less than AdityaBirla Sunlife
Midcap Fund.

 According to the largecap fund analysis,it is inferred that ADITYABIRLA frontline

equity fund had performed better in 2018 compared to all the other schemes.
Therefore,AdityaBirla Sunlife Midcap Fund has not earned its actual required return
and the other fund’s respectively considered to be far less than AdityaBirla Sunlife
Midcap Fund.Whereas Reliance Largecap Fund also had performed better closely
related with AdityaBirlaSunlife largecap Fund
 In the above analysis we can find that the returns on this particular fund is high in the
month of October even when the performance of the market is in negative trend. In
certain periods the movement of ADITYABIRLA SUNLIFE SMALLCAP is not
found to be in pace with the market index. and hence supposed to have an inverse
relationship. Moreover, the market volatility is high and it had affected the stock
return performance of adityabirlasunlifesmallcap fund.

 In the above analysis we can find that the returns on this particular fund is high in the
month of April even when the performance of the market is in positive trend. In
certain periods the movement of HDFC SMALLCAP FUND is not found to be in
pace with the market index. And hence supposed to have an inverse relationship.
Moreover ,the market volatility is high and it had also affected the stock return
performance of HDFC Smallcap fund.

 In the above analysis we can find that the returns on this particular fund is high in the
month of Aprilwhen the performance of the market is in positive trend. In certain
periods the movement of ICICI PRUDENTIAL Smallcap Fund. is not found to be in
pace with the market index. And hence supposed to have an inverse relationship.The
market volatility is high and it had also affected the stock return performance of
ICICI PRUDENTIAL Smallcap Fund.

 In the above analysis we can find that the returns on this particular fund is high in the
month of August even when the performance of the market is in negative trend. In
certain periods the movement of RELIANCE Smallcap Fund. is not found to be in
pace with the market index. And hence supposed to have an inverse relationship.The
market volatility is high and it had also affected the stock return performance of
RELIANCE Smallcap Fund.

 In the above analysis we can find that the returns on this particular fund is high in the
month of September when the performance of the market is in positive trend. In
certain periods the movement of SBI BSmallcap Fund. is not found to be in pace with
the market index. And hence supposed to have an inverse relationship The market
volatility is high and it had also affected the stock return performance of SBI
Smallcap fund.
 In the above analysis we can find that the returns on this particular fund is high in the
month of Aprilwhen the performance of the market is in positive trend. In certain
periods the movement AdityaBirlaSunlife Midcap Fund is not found to be in pace
with the market index. And hence supposed to have an inverse relationship The
market volatility is high and it had also affected the stock return performance of
AdityaBirlaSunlife Midcap Fund.

 In the above analysis we can find that the returns on this particular fund is high in the
month of Aprilwhen the performance of the market is in positive trend. In certain
periods the movement HDFC Midcap Opportunities Fund is not found to be in pace
with the market index. And hence supposed to have an inverse relationship .The
market volatility is high and it had also affected the stock return performance of
HDFC Midcap opportunities Fund.

 In the above analysis, we can find that the returns on this particular fund is high in the
month of Septemberwhen the performance of the market is in positive trend. In
certain periods the movement of ICICI Prudential Midcap Fund is not found to be in
pace with the market index. And hence supposed to have an inverse relationship .The
market volatility is high and it had also affected the stock return performance of
ICICI Prudential Midcap Fund.

 In the above analysis, we can find that the returns on this particular fund is high in the
month of October even when the performance of the market is in negative trend. In
certain periods the movement of Reliance Focused Equity fund. is not found to be in
pace with the market index. And hence supposed to have an inverse relationship .The
market volatility is high and it had also affected the stock return performance of
Reliance Focused Equity fund.

 In the above analysis, we can find that the returns on this particular fund is high in the
month of August even when the performance of the market is in negative trend. As an
average thisfund has performed with average fluctuation in fund return. In certain
periods the movement of. of SBI Magnum Midcap Fund.is not found to be in pace
with the market index. And hence supposed to have an inverse relationship .The
 market volatility is high and it had also affected the stock return performance of SBI
Magnum Midcap Fund

 In the above analysis, we can find that the returns on this particular fund is high in the
month of November even when the performance of the market is in negative trend. In
certain periods the movement of Aditya Birla Frontline equity Fund is not found to be
in pace with the market index. And hence supposed to have an inverse relationship .
As an average this fund has performed with average fluctuation in fund return.The
market volatility is high and it had also affected the stock return performance of
Aditya Birla Frontline equity Fund.

 In the above analysis, we can find that the returns on this particular fund is high in the
month of July even when the performance of the market is in negative trend. In
certain periods the movement of HDFC largecap Fund is not found to be in pace with
the market index. And hence supposed to have an inverse relationship. As an average
this fund has performed with average fluctuation in fund return.The market volatility
is high and it had also affected the stock return performance of HDFC largecap
Fund.

 In the above analysis, we can find that the returns on this particular fund is high in the
month of Julywhen the performance of the market is in positive trend. In certain
periods the movement of ICICI Prudential Bluechip Fund is not found to be in pace
with the market index. And hence supposed to have an inverse relationship. As an
average this fund has performed with average fluctuation in fund return.The market
volatility is high and it had also affected the stock return performance of ICICI
Prudential Bluechip Fund

 In the above analysis, we can find that the returns on this particular fund is high in the
month of August even when the performance of the market is in negativetrend. In
certain periods the movement of Reliance largecap fund is not found to be in pace
with the market index. And hence supposed to have an inverse relationship. As an
average this fund has performed with average fluctuation in fund return.The market
volatility is high and it had also affected the stock return performance of Reliance
largecap fund.
 In the above analysis, we can find that the returns on this particular fund is very high
in the month of December even when the performance of the market is in
negativetrend. In certain periods the movement of SBI Bluechip Fund is not found to
be in pace with the market index. And hence supposed to have an inverse
relationship. As an average this fund has performed.The market volatility is high and
it had also affected the stock return performance of SBI Bluechip Fund.
 3.4 SUGGESTIONS

 In terms of investment period, investors who want to park their funds for a longer
term they should invest in equity oriented funds which provide good returns over 5-
years. But in case of short term needs, it is better to invest in Debt funds.
 Returns are not the only criteria to be looked at while selecting an appropriate fund;
they don’t showcase the overall performance. Hence an investor should look at the
various statistical tools like standard deviation, Sharpe ratio, beta and alpha values.
 Investors should avoid funds displaying negative Sharpe ratio and alpha values. They
can instead park their capital in other categories of funds with better ratios or risk-free
assets.
 An investor should avoid investing the entire amount in one type of mutual fund.
They can further diversify their portfolio by investing in different categories of mutual
funds.
 For an investor with very high risk appetite, sector specific funds seem appropriate,
for moderate and high risk takers, Equity Large-Cap funds and Equity Mid-Cap are
suggested respectively. For investors who are old and want steady income and safety
of investment, debt funds are the most appropriate choice.
 The general perception of the stock market is such that investors liquidate their
holding in times of market turmoil, but the beneficial strategy to be followed is to
invest when the markets are down so that when it bounces back, the investors are left
with very high returns.
 It is very important to invest when the NAV values are low, since it would give more
no. of units to the investors and thus the dividend will also be more. Or the next best
option is to take the SIP (Systematic Investment Plan) route which equalizes the
volatility of the market to a certain extent.
 Apart from risk and return, it is necessary to look at the expense ratio charged by the
funds. Investors should make sure that in case of debt funds the expense ratios are less
than 1% and in case of equity they should avoid funds which charge extremely high
as it will reduce their net earnings.
 Also they should look at the P/E ratios, if it well above that of the benchmark then it
faces greater possible losses in a correction or bear market.
 It is imperative that the investors look at the break-up of the holdings of a fund in
terms of sector and capitalization. This would give them a picture about how
aggressive a fund’s strategy is; one should look out for funds with high P/B ratios.
 Finally, an investor should not choose a fund based on the AMC but rather on the past
performance and the credibility of the fund manager. It is the fund managers who run
the funds not the AMC.
 3.5 CONCLUSION

The findings show that mutual funds as an investment option have displayed tremendous
growth potential when the markets are optimistic and when wise choices are made. They have
performed better than traditional investment options in the long term and thus help investor
beat inflation to some extent. It is of paramount importance that investors do not make a rash
decision simply by looking at the return figures generated by an individual fund, they should
compare funds based on the risk and return analysis and find out which fund is giving better
returns commensurate to the risk taken. Statistical analysis helps investors make a wise
decision looking at facts based on numbers instead of just going by their gut feeling. Also
compared to the traditional options, mutual funds provide a more professional approach
towards investment and some amount of diversification. The mutual fund industry in India is
still in its nascent stages when compared to its American and European counterparts, which
means that there is still a huge untapped market and potential for good returns. A thorough
analysis clubbed with timely investments might prove Mutual Funds to be an excellent form
of investment.