A STUDY ON PERFORMANCE AND EVALUATION OF

SBI AND HDFC MUTUAL FUND A PROJECT

SUBMITTED

TO

UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF THE

DEGREE OF

BACHELOR OF MANAGEMENT STUDIES PROGRAMME

GUIDELINES FOR PROJECT WORK

AT

THIRD YEAR SEMESTER VI

Under Choice Based On Credit, Grading and Semester System

(To be implemented from Academic year 2021-2022)

Board of Studies – in – Business Management

1
 A STUDY ON PERFORMANCE AND EVALUATION OF
SBI AND HDFC MUTUAL FUND

A Project Submitted To

University Of Mumbai For Partial Completion of The Degree Of

Bachelor of Management Studies

Under the Faculty of Commerce

BY

MISS. JINAL GIRISH MAKWANA

UNDER THE GUIDANCE OF

MS. SONAL HIPPALGAONKAR

CHIKISTAK SAMUHA’S

SIR SITARAM & LADY SHANTABAI PATKAR COLLAGE OF ARTS AND SCIENCE

AND

V.P. VARDE COLLAGE OF COMMERCE & ECONOMICS

SWAMI VIVEKANANDA ROAD, PIRAMAL NAGAR, GOREGAON (W)

MUMBAI, MAHARASHTRA – 400104

APRIL,2022

2
 CERTIFICATE

This is to certify that MRS. JINAL GIRISH MAKWANA has worked and duly completed

his project work for the degree of Bachelor in Commerce (Accounting Finance) under the

Faculty of Commerce in the subject of Commerce and his project is entitled,

A STUDY ON PERFORMANCE EVALUATION OF SBI AND HDFC MUTU-

AL FUND. under the supervision of guide MRS. SONAL HIPPALGAONKAR

I further certify that the entire work has been done by the learner under my guidance and that

no part of it has been submitted previously for any Degree or Diploma of any University.

It is his own work and facts reported by her/his personal findings and investigations

PROF. SONAL HIPPALGAONKAR

Date of Submission: April,2022

3
 DECLARATION BY LEARNER

I the undersigned Mrs. JINAL GIRISH MAKWANA hereby, declare that the work in this
project titled A STUDY ON PERFORMANCE AND EVALUATION OF SBI AND
HDFC MUTUAL FUND, forms my own contribution to the research work carried out under
the guidance of MRS. SONAL HIPPLAGAONKAR a result of my own research work and
has not been previously submitted to any other University for any other Degree/Diploma to
this or any other University.

Wherever reference has been made to previous work of others, it has been clearly indicated as
such and included in the bibliography.

I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

JINAL MAKWANA

Certified By

SONAL HIPPALGAONKAR

4
 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.
I would like to acknowledge the following as being idealistic channels and fresh dimensions
in the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me chance to do this
project.
I would like to thank my Principal, DR. TRISA JOSEPH PALATHINGAL for providing
the necessary facilities required for completion of this project.
I take this opportunity to thank our Coordinator, MRS.SWATI TAKKER for his moral
support and guidance.
I would also like to express my sincere gratitude towards my project guide, MRS. NICOLE
PEREIRA whose guidance and care made the project successful. I would like to thank my
College Library, for having provided various reference books and magazines related to my
project.
Lastly, I would like to thank each and every person who directly or indirectly helped me in the
completion of the project especially my Parents and Peers who supported.

5
 INDEX

Sr Name of Topic Page No.

No.
Chapter 1:- Introduction 10-36

1.1 Meaning And Definition 11-14

1.2 Origin and History Of Mutual 14-16

Fund
1.3 Concept of Mutual Fund 16-18

1.4 Advantages Of Mutual Fund 18-19

1.5 Disadvantages Of Mutual Fund 19-20

1.6 Types Of Mutual Fund 21-24

1.7 Growth in Mutual Fund Industry 24-25

1.8 Mutual Fund Organization 25-28

1.9 List of Top Performing Mutual 29-30

funds
1.10 Company profile (SBI & HDFC) 30-36

Chapter 2 :- Research 37-42

Methodology
2.1 Objectives of Study 38

2.2 Scope of the Study 38

2.3 Need of the Study 39

2.4 Limitation of the Study 39

2.5 Sample Size 40

2.6 Data Collection 40-42

Chapter 3 :- Review of 43-51

Literature

Chapter 4:- Data Analysis and 52-75

Interpretation
4.1 Data Collected by Primary Source 53-60

4.2 Data Collected by Secondary 61-75

Source

Chapter 5:- Findings, 76-85

Conclusions, Recommendations
and Annexure

6
 LIST OF GRAPHS

GRAPH TITLE PAGE

NO NO
1.1 Growth in AUM 25

4.1 Age 53

4.2 Gender 54

4.3 Qualification 55

4.4 Monthly Income 55

4.5 Knowledge of Mutual 56

Fund (Sources)

4.6 Awareness 57

4.7 Preference 58

4.8 SBI and HDFC mutual 59

fund

4.9 Investment 59

4.10 Recommendation 60

7
 LIST OF TABLES

TABLE TITLE PAGE

NO NO
1.2 List of Top Performing 29
Mutual Funds

2.1 Shares selected for 42

Secondary Data

4.1 HDFC and SBI Gilt Fund 61

4.2 HDFC and SBI Equity 62

saving funds

4.3 HDFC and SBI Income 64

Fund

4.4 HDFC and SBI small cap 65

Fund

4.5 HDFC and SBI Hybrid 67

Debt Fund

4.6 HDFC Tax Saving Fund and 68

SBI Tax Advantage
Fund

4.7 HDFC banking and PSU 70

Debt Fund and SBI
Banking and Financial
Service Fund

4.8 HDFC and SBI short term 71

Fund

4.9 HDFC and SBI Multi Asset 73

Allocation Fund

8
ABBREVIATIONS USED:

SEBI- Security and Exchange Board of India

SBI- State Bank of India

HDFC- Housing Development Finance Corporation Limited

NAV- Net Assets Value

AMC- Assets Management Companies

AAUM- Average Assets Under Management

AUM- Assets Under Management

AMFI- The Association of Mutual Funds in India

CAPM- Capital Asset Pricing Model

ELSS- Equity Linked Savings Scheme

SIP- Systematic Investment Planning

UTI- Unit Trust of India

LIC- Life Insurance Corporation of India

PNB- Punjab National Bank

BOB- Bank of Baroda

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 CHAPTER -1

INTRODUCTION

10
INTRODUCTION ON MUTUAL FUND

1.1 Meaning and definition:

Mutual funds are the most popular investment types for the investors who want to invest their
money in number of investment and don’t have that efficient knowledge regarding the
schemes. Mutual funds are no doubt an easy mode of investment in Indian capital markets.
They are easy to understand and easy to use as well with proper guide and help. It’s
sometimes called as investing in dummies too. The accessibility, versatility and easy-to-
understand structure is an attractive feature for the investors who are investing for first time
and it is also a vehicle powerful for them too.

In simpler terms mutual funds are likely baskets, each basket holds certain types of stocks,
bonds or a blend of both which form a portfolio. Since mutual funds can hold hundreds or
even more number of units of stock or bonds, they are said to be diversified investment
method. Selecting mutual funds as a mode of investment can be the good choice as it breaks
up your money as well as risk associated with the securities and help investors to earn
maximum returns.

The popularity of mutual funds, which saw dramatic increases over the years as defined
contribution retirement plans gained a foothold in the financial industry, is holding up this
year, according to the Investment Company Institute, the national trade association for
investment companies.

A mutual fund is an intermediary that pools money from a number of investors and invests
the same in a variety of different financial instruments. The income earned through these
investments and the capital appreciation realized by the scheme is shared by the investors or
unit holders, in proportion to the number of units owned by them. Mutual funds can thus be

11
considered as financial intermediaries that collect funds from investors and invest it on their
behalf. The losses and gains accrue to the investors only.

The basic idea behind mutual funds is that investors lack time, the inclination and skills
required to manage their own investments. Professional mutual fund managers are highly
experienced personnel and act on behalf of the mutual fund company that manages the
investments for the benefit of the investors in return of a management fees. The organization
that manages the investment is known as Asset Management Company [AMC]. In India,
operations of AMC are supervised by the Securities and Exchange Board of India (SEBI).

It is a trust that collects money from number of investors who share a common investment
objectives. Then, it invests the money in equities, bonds, money market instruments and other
securities. Each income/gain generated from the collective investment is distributed
proportionately amongst the investors after deducting certain expenses, by calculating a
scheme’s “Net Asset Value or NAV”. Simply put, a Mutual Fund is one of the most viable
investment options for the common man as it offers an opportunity to invest in a diversified,
professionally managed basket of securities at a relatively low cost. A mutual funds portfolio
is structured and maintained to match the investment objectives as stated in its prospectus.

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 i.e. derived by the aggregating performance of the
underlying investments. It is divided into several kinds of categories, representing the kinds of
securities that invest in, their investment objectives, and the type of returns they seek.
Mutual funds charge annual fees called expense ratios and, in some cases, commissions,
which can affect their overall returns. Investing in a share of a mutual fund is different from
investing in shares of stock. Unlike stock, mutual fund shares do not give its holders any
voting rights. A share of

a mutual fund represents investments in many different stocks or securities instead of just one
holding.

As per SEBI regulations mutual funds means a fund established in the form of a trust to raise
monies through sale of units to the public under one or more schemes for investing in
securities, in accordance with regulations. The amount raised in invested in financial assets.
Each mutual fund has its own investment objectives such as appreciation, current income,
money market income etc. Indian mutual fund industry is the fastest growing segments of the
Indian economy growing up to 22% CAGR in year 1998 to 2008.

12
For today’s complex and modern financial scenario mutual fund is the ideal
investment. Global events occurring in faraway places lead to price fluctuation in the
market. Normally individuals appoint an professional to look upon their securities and to
guide them on that basis, by these individuals also come to know the exact position of their
scheme by not directly keeping watch on the shares or securities. Research, investment and
transaction processing are the three areas where mutual funds exploit the economy more.

At the time of launching the fund a draft document is to be prepared where it specifies the
objective of the fund, the risk associated, and cost involved in the process and the rules kept in
mind before entering for investment. In India SEBI is the regulator of the market and all
changes are first submitted to SEBI. The sponsors involved are to be registered with SEBI
first and then are confirmed to work in market. SEBI keeps a record of these sponsors and
also on the working of the market whether everything is according to the procedure or not.

Sponsors are the one who not only look after the individual profiles but also hires an asset
management company to invest the funds according to the objective of investment. It also
hires another entity as a custodian of the assets of the fund and a third one to look after the
registry work for the unit holders. In the Indian context, the sponsors promote the asset
management company also, in which it holds the majority of the stake. Many a time sponsors
can hold a 100% stake in asset management company (AMC). E.g. Birla global finance is the
sponsor of the Birla Sun Life Asset management company ltd., where it acts as asset manager
as well as various mutual fund schemes are being floated by them and looked upon.

The recently created overnight fund category of the mutual fund industry has been gaining
good attraction. The average asset under management of mutual fund industry in the
overnight fund category have grown five times over the last 10 months to Rs.52,525 crore as
of January-end, against Rs.11,567 crore as of April-end. The number of folios under overnight
funds has more than doubled to 46,763 (21,363) as of January end.

Overnight fund is a new category of debt mutual fund scheme created when SEBI in October
2017, re -categorised mutual fund schemes in order to bring about uniformity in products. The
open-ended fund invests in debt and money market instruments with overnight maturity of
just one day. Overnight funds are considered most liquid and relatively safest debt schemes.
“Overnight funds are ideal for the first time investors in mutual funds and considered good
start towards building a financially sound mutual fund portfolio,” said NS Venkatesh, CEO,
AMFI.

13
 The fact that average AUMs in overnight funds have grown five times and
commensurate folios too, growing more than two times, is a good indicator of the growing
affinity of investors towards this fund category, he added.

As per SEBI regulations, mutual fund an offer guaranteed returns for a maximum period of
one year, and the offer document should disclose the name of the guarantor and how the
guarantee would be honoured. Risk is reduced a lot due to diversification as all stocks may
not move in same direction in same proportion that to at same time.
Quantum of money invested decides the number of units that the holder will get.

Features of Mutual Funds:

1. Product variety the funds are categorized as equity funds, bond funds, hybrid funds, and
money market funds.
2. Variety in terms of services and plans such as growth option, dividend option, reinvest
dividend option, SIP.
3. Professional management at low cost.
4. Diversified portfolio
5. Liquidity
6. Investors services

1.2 Origin and History of Mutual Funds :

Although historians may differ on the exact genesis of mutual funds, the origin of mutual
funds can be tracked back to a title more than one and half century ago. In
1822, King William of the Netherland formed “Societe Generale de belique”, at Brussells,
which appears to be the first mutual fund. It was intended to facilitate small investment in
foreign government loans, which offered more security and returns than the home industry.
Later on, another company was started with an objective to make cooperative investments, to
protect investors against loss by wide undertakings, and to secure large returns through
investing in industries.

While origin of mutual funds was done by Prof K. Greet Rouen horst, stating that mutual
fund dates back to the late 1700s in Europe when a Dutch merchant and broker invited
subscription from investors to form a trust to provide an opportunity to diversify for small
investors with limited means. The modern mutual fund was first introduced in Belgium in the

14
year 1822. New form of investing in groups became very popular and also spread to Great
Britain and France.

In the year 1920s mutual fund were started in US also and became a common to many
investors around. The concept of Open ended mutual fund was more popular then close ended
mutual fund. After 1950, mutual fund industry saw a rapid growth, many economies
developed and experienced this industry to be helping to boost up their economies. The year
1971 saw establishment of index fund by William Fouse and John Mcquoum. In year 1970
the introduction of no load funds witnessed that investors were not required to pay any fees or
cost of investment, leading an impact on mutual fund companies working.

Mutual fund industry in India started in 1963 with the formation of UTI at the initiative of the
government of India and RBI. The history of mutual fund in India is described as follows:

1: Introductory Phase (1963 to 1987):

Unit Trust of India (UTI) was established in 1963 by an Act of Parliament. It was set up by
the Reserve Bank of India and functioned under the Regulatory and administrative control of
the Reserve Bank of India. In 1978 UTI was de-linked from

the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and
administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme
1964. At the end of 1988 UTI had Rs.6,700 crores of assets under management.

2: Entry of Public Sector Funds (1988 to 1993):

1987 marked the entry of non-UTI, public sector mutual funds set up by public sector banks
and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India
(GIC). SBI Mutual Fund was the first non-UTI Mutual Fund established in June 1987
followed by Can bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89),
Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund
(Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund
in December 1990.

At the end of 1993, the mutual fund industry had assets under management of Rs.47,004
crores.

3: Entry of Private Sector Mutual Fund (1993 to 2003):

15
With the entry of private sector funds in 1993, a new era started in the Indian mutual fund
industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year
in which the first Mutual Fund Regulations came into being, under which all mutual funds,
except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged
with Franklin Templeton) was the first private sector mutual fund registered in July 1993.

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

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

The number of mutual fund houses went on increasing, with many foreign mutual funds
setting up funds in India and also the industry has witnessed several mergers and acquisitions.
As at the end of January 2003, there were 33 mutual funds with total assets of Rs.1,21,805
crores. The Unit Trust of India with Rs.44,541 crores of assets under management was way
ahead of other mutual funds.

4: Development phase (2003):

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated
into two separate entities. One is the Specified Undertaking of the Unit Trust of India with
assets under management of Rs. 29,835 crores as at the end of January 2003, representing
broadly, the assets of US 64 scheme, assured return and certain other schemes. The Specified
Undertaking of Unit Trust of India, functioning under and administrator and under the rules
framed by Government of India and does not come under the purview of the Mutual Fund
Regulations.

The second is the UTI Mutual Fund, sponsored by SBI, PNB, BOB and LIC. It is registered
with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the
erstwhile UTI which had in March 2000 more than Rs. 76,000 crores of assets under
management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual
Fund Regulations, and with recent mergers taking place among different private sector funds,
the mutual fund industry has entered its current phase of consolidation and growth.

5: Current Phase (2014):

Since May 2014, the industry has witnessed steady inflows and increase in the AUM as well
as the number of investor folios. As per AMFI, the industry AUM had crossed the milestone
of Rs.10 trillion for the first time in May and in short span of about three years the AUM size

16
had increased more than two folds and crossed Rs.20 trillion in August 2017, Rs.21.36 trillion
as on 31st march 2018. The number of investor folio has gone up from 3.95 crore folio as on
31-03-2014 to 7.13 crore as on 31-03-2018.

1.3 Concept of mutual fund:

Investors have a basic choice: they can invest directly in individual securities, or they can
invest indirectly through a financial intermediary. Financial intermediaries gather savings
from investors and invest these monies in a portfolio of financial assets.

A mutual fund is both an investment and an actual company. For eg. Buying a share of AAPL
is a representation of Apple Inc. An investor buys Apple stock at that time he is buying partial
ownership and its assets, similarly a mutual fund investor is buying partial ownership of the
mutual fund and not the company. Income is earned from dividends on stock and interest on
bonds held in the fund’s portfolio. If the fund sells securities that have increased in price the
fund is said to face capital gain. If a mutual fund is constructed as a virtual company, its CEO
is the Fund Manager also known as investment adviser. Board of directors have the power to
appoint fund manager.

Analysts are also appointed by the company to seek help from them regarding the securities
and to know well how those securities perform in the market. NAV is calculated by a fund
accountant on the basis of daily value of the portfolio. For individuals who don’t want to lose
their money chooses the safe way to invest and also earn good returns out of that investment.
An individual can start investing as and when he thinks to and also don’t face any barriers
while withdrawing the security. Mutual funds make it easy and less costly for investors to
satisfy their needs for return.

17
As shown in above diagram, Mutual fund is a place where investors money are pooled by
fund manager and the fund manager invests the money in securities based on investors
objective or on their risk and return takings. The securities then generates return which is then
shared to investors by the fund manager on the basis of units they have at the price of current
NAV.

Mutual fund provide the benefit of having someone else manage your investment and look
after the account and diversify your money in number of different securities. Mutual fund
have tremendous opportunities as for investment is concerned, it provides an investor the
biggest opportunity to earn a good return by just making a portfolio of your likings and
interest which helps to bifurcate risk and get high returns.

Net Asset Value:

Unlike a stock whose price changes with every passing second, mutual funds don’t trade in
real-time. Instead, mutual funds are priced based on the end of the day methodology based on
their assets and liabilities.

The term Net Asset Value (NAV) is used by investment companies to measure net assets. It is
calculated by subtracting liabilities from the value of a fund’s securities and other items of
value and dividing this by number of shares outstanding shares. Net asset value is popularly
used in newspaper mutual fund tables to designate the price per share for the fund.

The value of a collective investment fund based on the market price of securities held in its
portfolio. Units in open ended funds are valued using this measure. Closed ended investment
trusts have a net asset value but have a separate market value. NAV per share is calculated by
dividing the figure by number of ordinary shares. Investments trusts can trade at net asset
value or their price can be at a premium or discount to NAV. NAV is calculated each day by
taking the closing market value of all securities owned plus all other assets such as cash,
subtracting all liabilities, and then dividing the total net assets by the total number of shares
outstanding.If the applicable NAV is Rs.10.00 and the exit/redemption load is 1%, then the
Repurchase Price will be Rs.9.90.

Calculate NAV= Assets – Debits / Number of outstanding units.

NAV is not relevant for the investors when the amount of investment in different schemes is
the same. Higher NAV means that the scheme investment have fared well i.e. growing well.
NAV has impact on the number of units you get. It is the return generated by Mutual Fund
18
 scheme that matters. NAV is always different from Market Value. NAV does not indicate
performance of the fund. A lower NAV does not make a fund a better investment.

Fund investors often try to assess the performance of a mutual fund based on their NAV
differentials between two dates. For instance, one may likely compare the NAV on January 1
to the NAV on December 31, and see the difference in the two values as a gauge to fund’s
performance. However, changes in NAV between two dates aren’t the best representations of
mutual fund performance.

1.4 Advantages of Mutual Funds:

a) Professional Management:

Mutual Fund managers are the ones to whom investors give their money to invest so they
need to be professionally trained and experienced, on how they should constantly keep a
watch and manage the fund. As not everyone can be Wareen Buffet the managers need to be
trained so well that investor can completely rely on them. b) Instant diversification:

Since one of the primary rules of investment is to diversify portfolios, a mutual fund can be a
simple and successful way to accomplish this goal. With one investment, you will own shares
of stock in many corporations. A mutual fund portfolio combines a variety of stocks, bonds,
commodities and cash, mutual funds are, by nature, diversified. If one stock or asset goes
down, there will be others that compensate for it. This just means that the potential for losses
is spread out conservatively. c) Liquidity:

Mutual funds is the only investment way where the liquidity concept is more. If you ever want
to get out of a mutual fund, all you have to do is instruct your broker or financial advisor.
They can sell it immediately. Normally, the funds take a day to come back into your account,
but that’s not so bad. Comparatively, individual stocks would take much longer to liquidate.
By doing so you can save yourself from risk that may cause huge loss.

d) Flexibility:

Many mutual fund companies manage several different funds (e.g., money market,
fixed-income, growth, balanced, sector, index and global funds) and allow you to switch
between these funds at little or no charge. This enables you to change your portfolio balance
as and when your personal needs, financial goals or market conditions change.

19
e) Affordability:

An investor can begin buying units or shares with a relatively small amount of money (e.g.,
Rs.500 for the initial purchase). Some mutual funds also permits you to buy more units on a
regular basis with even smaller instalments. This helps an small investors also to invest their
money in mutual funds such as small traders, students who are not earning but have interest to
do so, etc.

f) Return Potential:

Over a medium to long term, Mutual Fund has the potential to provide a higher return as
investors invest in a diversified basket of selected securities. Returns offered by mutual funds
are comparatively better than any other investment.

g)Transparency:

Investors get regular information on the value of their investment in addition to

disclosure on the specific investments made by scheme, the proportion invested in each class
of assets and the fund manager’s investment strategy and outlook.

h) Numerous options:

Mutual funds provide a number of option to their investors so as to meet their diverse needs.
These options are in the form of different funds like income funds, balanced funds, liquid
funds, gilt funds, index funds, exchange traded funds, etc. investors can choose the fund of his
or her particular need in the available basket of securities.

1.5 Disadvantages of Mutual Funds:

a) Management Fees:

Mutual fund companies have to pay salaries and marketing expenses and they always get paid
first before the investors/owners get paid, and even sometimes investors are also told to pay
fees to managers. Management fees are one of the key metrics to watch out for as an investor
because they can quickly and devilishly eat into your profits over time. It is seen that higher
fees tends to slowdown the performance of the fund or the companies associated i.e. AMC.

20
 b) Locked in Clause:
There are two different types of mutual fund structures such as open ended and close ended –
one allows you to go in and out at any time. The other one is locked in for
5-7 years. With this one, if you try to take your money out earlier, you’ll get charged for it.

c) Tax Inefficiency:

Like it or not, investors do not have a choice when it comes to capital gains pay-outs in
mutual funds. Due to the turnover, redemptions, gains, and losses in security holdings
throughout the year, investors typically receive distributions from the fund that are an
uncontrollable tax event. Unlike other investments where they get tax benefit mutual funds
are still out of that pace.

d) Dilution:

While diversification averages your risks of loss, it can also dilute your profits. Hence, you
should not invest in more than seven to nine mutual funds at a time.

1.6 Types of Mutual Funds:

21
Mutual Fund can be classified as follows:

A) Based on Structure:

1. Open Ended funds:

Open ended funds can buy or sell units at any time at a price linked to NAV. It has no fixed
maturity. It is most liquid. Unit holder can buy or sell their units at the current price of NAV
to the issuing mutual fund anytime during the life of scheme.

2.Close Ended funds:

Sale can be done once only as it comes with a stipulated maturity period. The maturity period
generally range from 2 to 5 years. Investors can buy/sell units at the prevailing market prices.
The market price of such funds varies in direction to the demand and supply situation and
may be above or below the scheme’s NAV.

3. Interval funds:

Interval funds are a hybrid of open and close ended funds. While they operate mainly as close
ended funds, these funds may trade on stock exchanges and are open for sale or redemption at
predetermined intervals at the prevailing NAV.

B) Based on Investment Objective:

1. Equity Funds/ Growth funds:

An equity fund or growth fund is a mutual fund that invests principally in stocks. It can be
actively or passively (index fund) managed. Equity funds are also known as stock funds. The
main objective of these funds is to achieve long-term capital growth. Equity funds invest at
least 65% of their corpus in equity and equity-related securities. These funds may invest in a
wide range of industries/sectors or focus on one or more sectors. These funds are suitable to
invest in if you have a higher risk appetite and you have a long-term financial goal.

22
2. Balanced funds:

The fund provides regular income. The scheme invests in both equity funds and debt oriented
funds. With an aim to provide stability of returns and capital appreciation, balanced mutual
funds invest in both equities and fixed income instruments. These funds generally tend to
invest around 60% in equity and 40% in debt instruments such as bonds and debentures.

3. Dividend yield funds:

This is the fund where money is invested in large companies offering high dividends.

4. Debt or Income fund:

Debt/Income funds usually invest 65% of the amount in fixed income securities such as
bonds, corporate debentures, government securities (gilts) and money market instruments.
These funds are likely to be less volatile than equity funds.

5. Offshore funds:

These funds are for non-residential investors, they are regulated by the provisions of the
foreign countries where these funds are registered.

6. SIP:

SIP helps an investor to ride out the volatility. It is called as systematic investment plan where
a fixed amount of money is deducted from your bank A/c every month and then invested in
the scheme selected.

7. Gilt Fund:

Gilt mutual funds invest exclusively in government securities. The Gilt funds do not carry a
credit risk - where the issuer of the security can default. However, it comes with an interest
rate risk i.e. risk due to the rise or fall in interest rates.

C) Others :

1.Tax saving funds:

23
The Income Tax Act offers tax deduction under specific provisions of the Income Tax Act,
1961. Designed to generate capital growth, ELSS mutual funds invest primarily in equities
and largely suit investors with a higher risk appetite for capital appreciation. Spread over
medium to long-term, tax saving funds comes with a lockin period of 3 years.

2. Index funds:

Index funds are attached to a particular index such as the BSE SENSEX or the S&P CNX
NIFTY. Their performance is linked to the results of that index. Here, the portfolio comprises
stocks that represent an index and the weightage assigned to each stock is in line with the
identified index. Hence, the returns will be more or less similar to those generated by the
Index.

1.7 Growth in Mutual Funds Industry:

Average Assets Under Management (AAUM) of Indian Mutual Fund Industry for the month
of December 2019 has crossed a landmark of Rs.27 Lakh Crore and stood at Rs.27,25,932
crore. Assets Under Management (AUM) of Indian Mutual Fund Industry as on December 31,
2019 stood at Rs.26,54,075 crore.The AUM of the Indian MF Industry has grown from
Rs.6.65 trillion as on 31st December, 2009 to Rs.26.54 trillion as on 31st December, 2019,
about 4 fold increase in a span of 10 years. The MF Industry’s AUM has grown from
Rs.10.51 trillion as on 31st December, 2014 to Rs.26.54 trillion as on 31st December, 2019,
about 2 ½ fold increase in a span of 5 years.
Industry’s AUM had crossed the milestone of Rs.10 Lakh Crore for the first time in May 2014
and in a short span of about three years, the AUM size had increased more than two folds and
crossed Rs.20 Lakh Crore for the first time in August 2017. The Industry AUM stood at
Rs.26.54 Lakh Crore as on 31st December, 2019.

The total number of accounts or folios as per mutual fund parlance as on December 31, 2019
stood at 8.71 crore (87.1 million), while the number of folios under Equity, Hybrid and
Solution Oriented Schemes, wherein the maximum investment is from retail segment stood at
Rs.7.75 crore (77.5 million). This is 67th consecutive month witnessing rise in the no. of
folios. Thanks to the aggressive marketing campaigns by the Mutual fund regulator(s), Fund
houses and intermediaries, the fund flows into Mutual Fund Schemes have been growing

24
positively, over the last few years. So below is an chart showing growth in industry for year
2009-2018.

The Assets Under Management growth seen by the mutual fund industry in 2019 is
significantly higher than 7.5% growth witnessed in 2018. Mutual funds have added a
whopping Rs3.15 lakh crore to their asset base in 2019 on the back of robust inflows in debt
schemes and measures taken by regulator SEBI for boosting investor confidence. The AUM
growth seen by the 44-member mutual fund industry in 2019 is significantly higher than 7.5%
witnessed in 2018. However, the growth was much higher at 32% in 2017, when the asset
base expanded by over Rs 5.4 lakh crore.

Sources by AMFI India (1.1)

1.8 Mutual fund Organisation:

A mutual fund is organized as a regular corporation or a trust, depending on which method the
founders prefer. If the fund agrees to pay out all of its dividend, interest, and capital gains
profits to shareholders, the IRS won't make it pay corporate taxes. Mutual fund organisation
consists of many concepts such as unit holders, sponsors, trustees, AMC, SEBI, fund
manager, custodians. The Mutual Fund Shareholders, like the other shareholders have the
right to vote. The voting rights include, the right to elect directors during the directorial
elections, voting right to approve the alterations investment advisory contract pertaining to the
fund and provide approval for changing investment objectives or policies. The custodians
protect the portfolio securities.

25
 Mostly qualified bank custodians are used for mutual funds. The primary aim of the
Securities Exchange Board of India (SEBI) is to protect the interest of the mutual fund
investors. The SEBI has formulated several policies for better functioning and controls the
mutual funds. Below is the table showing the organisation in proper manner.

1. Trust:

A mutual fund shall be considered in the form of a trust and the instrument of trust
shall be in the form of a deed, duly registered under the provision of the indian registration
act, 1908, executed by the sponsor in favour of the trustees named in such an instrument. A
mutual fund is set up in the form of a trust, which has sponsor, trustees, Asset Management
Company and custodian.

2. Sponsor :

Sponsor means any person who, acting alone or in combination with another body
corporate, establishes a mutual fund. The trust is established by a sponsor or more than one
sponsors who is like promoter of a company.

3. Trustees:

Trustees means the Board of Trustees or the Trustee Company who hold the property
of the mutual fund in trust for the benefit of the unit holders. No trsutee shall initially or any
time therafter be appointed without prior approval by the board.

4. Asset Management Company:

AMC means a company formed and registered under the companies act, 1956 and
approved by the board under regulations act. AMC approved by SEBI manages the fund by

26
 making investments in various securities. 50% of the directors of AMC must be independent.
The AMC needs to have a minimum net worth of Rs.50 crore.
An AMC cannot invest in its own schemes.

5. Custodian:

Custodian means a person who has been granted a certificate of registration to carry
on the businees of custodian of securities under the securities and exchange board of India
regulations 1996. It also keeps an track on corporate actions such as dividend, bonus and
rights in companies where the funds are invested.

AMFI Certification:

The Association of Mutual Funds in India(AMFI) is dedicated to developing the Indian

Mutual Fund Industry on professional, healthy and ethical lines and to enhance and maintain
standards in all areas with a view to protecting and promoting the interests of mutual funds
and their unit holders.

The AMFI represents the interest of all mutual funds operating in the country. It is dedicated
to develop the Indian mutual funds industry on professional as well as on ethical front. AMFI
functions under the committee system. It is an apex body of all registered AMCs defined in its
own language. AMFI is committed to assist the investors, distributors and company members
through complication and dissemination of information pertaining to mutual funds.

AMFI, the association of all the Asset Management Companies of SEBI registered mutual
funds in India, was incorporated on August 22, 1995, as a non-profit organisation. As of now,
all the 45 Asset Management Companies that are registered with SEBI, are its members.

In July 2000, AMFI (association of mutual funds in India) launched a mutual fund testing and
certification programme for mutual fund agents, distributor advisors and employees. A
certification committee was constituted to prepare a framework for certification that included
preparation of workbook, examination modules, test procedures, eligibility standards,
education etc.

In a short span of time, AMFI has contributed significantly to improve the business practices
among mutual funds. It has very well promoted the interest of its members. Thus, AMFI,
27
 being an association of mutual funds, has been playing a key role in developing the standards
of mutual funds industry.

Few objectives of AMFI:

• To define and maintain high professional and ethical standards in all areas of operation of
mutual fund industry.
• To recommend and promote best business practices and code of conduct to be followed by
members and others engaged in the activities of mutual fund and asset management including
agencies connected or involved in the field of capital markets and financial services.
• To interact with the Securities and Exchange Board of India (SEBI) and to represent to SEBI
on all matters concerning the mutual fund industry.
• To represent to the Government, Reserve Bank of India and other bodies on all matters
relating to the Mutual Fund Industry.
• To undertake nationwide investor awareness programme so as to promote proper
understanding of the concept and working of mutual funds.
• To disseminate information on Mutual Fund Industry and to undertake studies and research
directly and/or in association with other bodies.
• To take regulate conduct of distributors including disciplinary actions (cancellation of ARN)
for violations of Code of Conduct.
• To protect the interest of investors/unit holders.

28
 1.9 List of Top performing Mutual Funds in India as per year 2020:

FUND NAME FUND TYPE AUM (Crores) 3 YEAR 5 YEAR

RETURN RETURN

Axis Blue- Large Cap Rs.11077 20.32% 12.06%

chip Fund
Axis Small Small Cap Rs.2084 16.31% 13.81%
cap fund
SBI magnum Thematic Rs.3748 10.53% 7.37%
global fund
Aditya birla Liquid 6.95% 7.36%
sun life liquid Rs.46063
fund
ICICI Long duration Rs.807 9.72% 9.79%
Prudential
long term
bond fund
Axis strategic 1229 7.91% 7.60% 8.80%
bond fund
HDFC Hybrid 20582 8.02% 10.48% 9.83%
equity fund
Kotak debt conservative Rs.252 8.41% 8.97%
hybrid fund

IDFC dynamic Dynamic asset Rs.974 10.79% 7.57%

equity fund allocation

( source paisabazaar.com)(1.2)

Tips to select best mutual funds:

• While investing in Mutual Funds, one must be aware that these funds are subject to market
risks. And hence, investments must be made keeping the risks involved into consideration.

• Higher the risk involved, higher returns can be expected.

• One must invest in mutual funds only after gaining complete knowledge of the market. Or
else one can go for an Asset Management Company.

• The simplest way to choose the mutual fund is to understand your needs and hence, your
investment objective. You may invest in Mutual Funds with the motive of growing your
money over the course of time, to avail the benefits of tax exemption and/or tax deduction on

your income, or to enjoy safe and secure returns in the long term.

29
 Things to be kept in mind while making Portfolio:

The best way to manage investments is to have a separate portfolio for each financial goal. Or
club similar goals and have portfolios for them. For example – retirement portfolio, child’s
education or marriage portfolio, etc. Once you start thinking in terms of goals, you have
precise answers to questions like how much money you need for the goal, when you need it
and what returns you should be targeting.

• Have a blueprint of what are your requirements.The blueprint tells the builder to build a
structure of a particular size and shape, with specific features, to suit the needs of its future
owners. Similarly, your portfolio should suit your needs and specifications.
• Decide on an asset allocation: it means one need to be clear on what type of investment they
need that is whether they want to invest in equity fund, debt fund, or hybrid fund.

1.10 Company Profile

SBI Mutual Funds:

SBI Mutual Fund is India‘s largest bank sponsored mutual fund and has an enviable track
record in judicious investments and consistent wealth creation. The fund traces its lineage to
SBI -India‘s largest banking enterprise. The institution has grown immensely since its
inception and today it is India's largest bank, patronized by over 80% of the top corporate

houses of the country. In eighteen years of operation, the fund has launched thirty-two
schemes and successfully redeemed fifteen of them. In the process it has rewarded it‘s
investors handsomely with consistently high returns.

The SBI Mutual Fund Trustee Company Private Limited was constituted as a Trust under the
provisions of the Indian Trust Act 1882. It is registered with the Securities and Exchange
Board of India (SEBI). SBI Mutual Fund is a joint venture between the State Bank of India

30
and Amundi, a European asset management company which is a subsidiary jointly created by
Crédit Agricole and Société Générale.

The corporate headquarter of the SBI Mutual Fund, which is India’s largest bank sponsored
mutual fund, is based out of Mumbai. It is also the first bank-sponsored fund that launched an
offshore fund, Resurgent India Opportunity Fund. Investing in SBI Mutual Funds has been
made simpler than ever before whether you are a seasoned investor or a novice in this area.
SBI Mutual Fund, with just one KYC formality that will take not more than 7 minutes of your
time. For KYC purpose one need to submit few documents such asXerox copy of PAN Card,
Passport, Aadhaar Card Voter ID or Driving License. Other central government approved
documents like NREGA job card are also accepted. For Residential proofs one can submit the
same ID proof (except PAN), if the address on it is your current residential address.
Rental/lease agreement, most utility bill and ration card can also serve the purpose. If your
permanent address and correspondence address are not the same, then submit proof for both.

As of March 2019, the SBI Mutual Fund manages assets worth Rs2.83 Lakh Crore. In early
2019, it moved past Aditya Birla and HDFC Mutual Funds to emerge as the 3rd largest
Mutual Fund body in India based on Assets under Management or AUM. The SBIMF is
registered with the Securities and Exchange Board of India or SEBI. According to the latest
reports, the SBI Bank Mutual Fund has witnessed a 7% growth in AUM in 2019. This is more
than any other competing MF.

Today, the fund manages over Rs.320662.84 crores of assets and has a diverse profile of
investors actively parking their investments across 61active schemes. The fund serves this
vast family of investors by reaching out to them through network of 100 collection branches,
26 investor service centres, 28 investor service desks and 52 districts organize.

SBI Mutual fund has many firsts to its name. It was the first Indian Mutual Fund player to
launch a ‘Contra’ fund, called the SBI Contra Fund. In 2013, SBI Mutual Fund India acquired
Daiwa Mutual Fund, part of the Daiwa Group of Japan. SBI Mutual Fund is the first in India
to launch an ESG Fund. An acronym for Environment, Social and Governance, the fund
provides resources for sustainable investment in major markets. In 2015, the Employees’
Provident Fund of India invested Rs5,000 Crore for the first time in a Mutual Fund in India
via SBI Mutual fund Sensex ETFs or Exchange Traded Funds.

31
 List of top 5 SBI Mutual Funds: (Return)

Top 5 SBI Mutual Year 1 Year 3 Year 5 Year

Fund 10

SBI Arbitrage 6.06 5.92 7.16 7.14

opportunities fund
(hybrid: arbitrage)

SBI Banking 16.1 18.74 - -

and Financial
Services fund
regular plam
(equity banking)

SBI Bluechip 9.86 11.48 17.25 11.33

fund (equity
large cap)

SBI 28.26 19.43 17.68 22.03

consumption
opportunities
fund (equity
FMCG)

SBI Dynamic 10.36 9.58 - -

asset allocation
fund (hybrid)

( Source by SBI )

32
 Key information regarding SBI mutual fund:

Mutual Fund SBI Mutual Fund

Setup Date Jun-29-1987

Incorporation Feb-07-1992
Date
Sponsor State Bank of India

Trustee SBI Mutual Fund Trustee Company Private

Limited
Chairman Mrs. Arundhati Bhattacharya

CEO / MD Mrs. Anuradha Rao

CIO Mr. Navneet Munot

Compliance Ms. Vinaya Datar

Officer
Investor Mr. RohidasNakashe
Service
Officer
Assets Rs. 320662.84 crore (Sep-30-2019)
Managed

HDFC Mutual Fund:

HDFC has had a long and inspiring journey and is currently one of the largest financial
institutions in India. Started out mainly as a company specializing in loans, it now boasts of
numerous subsidiaries, of which HDFC Mutual Fund is one. HDFC Mutual Fund was
launched on 30th June 2000 as a trust as per the provisions of the Indian Trusts Act, 1882.

HDFC has been a prominent player and has a proven track record of positive and reliable
fund performance across different market cycles and diverse asset classes. Their main focus
was to set up a solid research-backed infrastructure. Optimal management of portfolio risks
has always been their USP.HDFC Mutual Fund has left no stone unturned to cater to investors

33
from all walks of life. Be it any financial goal – long-term, short-term, retirement, tax-saving
and so on – HDFC has that plan for you. Majority of the mutual fund products they offer have
CRISIL ratings of 3 and more. Investors from any income background have a gamut of choice
in every asset classes and risk profile. In fact, the risk factor of the products range from very
low to high. Investors can choose as per their risk appetite. For instance, In short, ELSS funds
have made it easier for investors to define their financial goals – available in both close-ended
and open-ended funds.

HDFC Mutual Fund has been constituted as a trust in accordance with the provisions of the
Indian Trusts Act, 1882, as per the terms of the trust deed dated June 8, 2000 with Housing
Development Finance Corporation Limited (HDFC) and Standard Life Investments Limited
as the Sponsors / Settlers and HDFC Trustee Company Limited, as the Trustee. The Trust
Deed has been registered under the Indian Registration Act, 1908.

India’s largest and most profitable mutual fund manager with Rs.3.7 trillion in assets under
management. Started in 1999, was set up as a joint venture between Housing
Development Finance Corporation Limited (“HDFC”) and Standard Life Investments Limited
(“SLI”). During FY18-19 it carried out an initial public offering, and became a publicly listed
company in August 2018. Currently, 17% of the company is owned by the public. HDFC
Asset Management Company (“HDFC AMC”) is the investment manager to the schemes of
HDFC Mutual Fund (“HDFC MF”).

Key information regarding HDFC Mutual Fund:

Mutual Fund HDFC Mutual Fund

Setup Date Jun-30-2000

Incorporation Dec-10-1999
Date
Sponsor Housing Development Finance Corporation
Ltd. / Standard Life Investments Ltd.

Trustee HDFC Trustee Company Limited

Chairman N.A

CEO / MD Mr. Milind Barve

CIO Mr. Prashant Jain

Compliance Mr. YezdiKhariwala

Officer
34
 Investor Mr. John Mathew
Service Of-
ficer
Assets Rs. 376597.57 crore (Sep-30-2019)
Managed

According to SEBI, its net worth stood at Rs.61,402 Crore, total income at Rs.35,229 Crore,
profit (after tax) at Rs.12,163 Crore in March 2018. During FY 2018-19, the AMC reported a
increase in profit of 61%. They registered a profit of Rs.930 Crore in March 2019, a 31%
growth. For the March 2019 quarter alone, their profits stood at Rs.276 Crore. HDFC AMC
recorded a 16.2% market share in the actively-managed equity oriented schemes in FY 2018-
19. The company has around 210 branches located in more than 200 cities around India.
It has 53 Lakh investors with 91 Lakh live accounts.

35
List of top 5 HDFC Mutual Funds: (Returns)

Top 5 HDFC Year Year 5

Mutual Funds 3
HDFC Equity fund 7.82% 8.17%

HDFC Small Cap 7.61% 11.98%

fund
HDFC Hybrid 7.67% 10.58%
Equity fund
HDFC Short Term 7.76% 8.81%
Debt fund
HDFC Equity 7.75% 8.94%
Saving fund

( Source by HDFC)

It is easier than ever to shortlist any HDFC mutual fund product and invest. Know Your
Customer (KYC) and In-Person Verification (IPV) can help a financial institution
significantly. Know Your Customer or KYC process is a government and RBI mandate for all
financial institutions, including AMCs. For KYC process one needs to give few documents to
the institution for verification such as ID Proofs which includes Xerox copy of PAN Card,
Passport, Aadhaar Card, Voter ID or Driving License. Other central government
approved documents like NREGA job card are also accepted also for residential proof one
need to submit the same ID proof (except PAN), if the address on it is your current residential
address.

36
 Chapter 2

Research Methodology

37
 Research methodology:

Investor’s main objective is to earn higher returns keeping in mind the risk and
liquidity factor. With this objective in mind, an investor is looking out for various
investment avenues. Mutual funds offer comparatively better returns and have less risk as
compared to direct investment in stock market. Research methodology is a systematic
method of discovering new facts or verifying old facts, their inter-relationship, casual
explanation.

2.1 Objectives of the study:

1. To evaluate the performance of HDFC Mutual Fund and SBI Mutual fund.

2. To study the risk and returns of the policy of the mutual fund company.

3. A study on various investment schemes with both the companies i.e. HDFC & SBI.
4. To analyse which of the selected mutual funds provide better return.

2.2 Scope of the Study:

A big boom has been witnessed in mutual fund industry in recent times. A large number of
new players have entered the market and trying to gain market share in the rapidly improving
market.

The schemes of the mutual fund of the two companies (SBI and HDFC) are
categorized and selected for evaluation of their performance and concerned risk. The scope of
the study is mainly focused on the categories of the mutual funds such as equity scheme, debt
funds, balanced funds and hybrid funds or any sector specific funds of the two asset
management companies which are HDFC and SBI.

The study will help in finding of the interest and preference of the customers, portfolio
knowledge, mode of investment, risk and return an investor can bear.

38
2.3 Need of the study:

The main purpose behind selection of this topic was to know the best mutual fund company
among the two i.e. SBI and HDFC, and secondly to know about mutual fund and its
functioning. The study helped out to know mutual fund industry inside out from its start to
growth to its future perceptions.

In the study I took few of the schemes of both the companies to understand it in a better
way. As my study was on the performance evaluation of SBI and HDFC mutual fund and
their schemes like equity, debt, hybrid, and growth oriented funds, balanced as well as return
associated it was not that hard to find their data and past performance.

I also did a small questionnaire to know the awareness and the preference of the people
towards mutual fund investment. To choose best company among the two i.e. HDFC and SBI
Mutual fund.

2.4 Limitation of the study:

1. The risk and return of mutual fund schemes can change according to the market
conditions.

2. The present study was constrained by time, cost and physical limitations of the
researchers.

3. Some of the respondents were not so co-operative as they were concerned for the
information they were sharing.

4. Possibility of error in collection of data as many investors may not have given their
actual answers to my questionnaire.

5. Sample size was limited to 100 which included all age group people, occupation,
qualification.

6. The universe for the present study was restricted to Mira Road (Mumbai) and
nearby areas and if the same research would have been carried in another city, the results
may vary.

7. The perception of respondents towards mutual funds may differ according to their
personal experiences and achievements.

39
2.5 Sample size:

Residents of Mira Road (Mumbai) region who are students, working individuals

(either in service. business or profession) from organized sector, fresher’s i.e. who don’t earn
yet, and retired. Most of the respondents were of middle income group were as there were
few from high and low income group too.

2.6 Data collection :

a) Primary data collection:

For the purpose of this study, the survey method is adopted for collection of data. The data
collection instrument used is structured questionnaire. The sampling technique used is
Judgmental Sampling Method and sample size is 100 investors and sampling units included
students, salaried employees, retired group of people.

b) Secondary data collection:

Secondary data was collected from magazines, thesis reports, seminars and conference papers,
articles, websites, unpublished data, published books, journals, and newspapers, books
related to mutual funds, academic level books, etc. few ratios were also used to come to the
conclusion such as
Standard Deviation, Beta, Treynor’s, Jensen Alpha, Sharpe Ratio, Expense Ratio and also
annualized return of the fund was considered.

1. Standard deviation: value gives an idea about how volatile fund returns has been in the
past 3 years. Lower value indicates more predictable performance. It is nothing but square
root of variance. High standard deviation indicates greater volatility return and greater risk.

2. Beta: gives idea about how volatile fund performance has been compared to similar
funds in the market. Lower beta implies the fund gives more predictable performance
compared to similar funds in the market. Beta denotes only the systematic risk involved in the
security, it tells us the relationship of a company’s returns with the returns of a diversified

40
portfolio such as BSE Sensex or Nifty. Securities with value higher than 1 are known as
aggressive securities.

Beta coefficient(β)= Variance(Rm) ÷ Covariance(Re,Rm) where:

Re=the return on an individual stock

Rm=the return on the overall market

Covariance =how changes in a stock’s returns arerelated to changes in the market’s returns

Variance=how far the market’s data points spreadout from their average value

3. Treynor’s: the ratio measures the excess return earned per unit of systematic market
risk. It is computed by dividing the difference of average return of a fund and the risk free rate
by the beta of a fund. Higher the treynor ratio, better the performance of the fund. Treynor
Ratio= βp ÷ rp−rf where:

rp=Portfolio return rf=Risk-free rate βp=Beta of the portfolio

4. Jensen Alpha:The Jensen's measure, or Jensen's alpha, is a risk-adjusted performance
measure that represents the average return on a portfolio or investment, above or below that
predicted by the capital asset pricing model
(CAPM), given the portfolio's or investment's beta and the average market return. The
measure accounts for the risk-free rate of return for the time period.

Alpha = R(i) - (R(f) + B x (R(m) - R(f))) where:

R(i) = the realized return of the portfolio or investment

R(m) = the realized return of the appropriate market index

R(f) = the risk-free rate of return for the time period

B = the beta of the portfolio of investment with respect to the chosen market index

5. Sharpe Ratio: it measures the excess return earned per unit of total risk with the help of
the ratio, an investor can know the required rate of return for a risky asset. It can be computed
by dividing the funds average excess return by its total risk for the sample mutual fund
scheme as well as for benchmark portfolio. Sharpe ratio higher than the benchmark indicates
better performance than the market. Sharpe Ratio= σp ÷Rp−Rf where:

Rp=return of portfolio Rf=risk-free rate σp=standard deviation of the portfolio’s excess return

41
6. Expense ratio:The expense ratio (ER), also sometimes known as the management
expense ratio (MER), measures how much of a fund's assets are used for administrative and
other operating expenses. An expense ratio is determined by dividing a fund's operating
expenses by the average dollar value of its assets under management (AUM). Operating
expenses reduce the fund's assets, thereby reducing the return to investors.

ER=Total Fund Assets ÷ Total Fund Costs

Shares or securities selected for Secondary Data:

The following similar funds were selected to do a study.

HDFC MUTUAL SBI MUTUAL FUND

FUND
HDFC Gilt fund SBI Magnum Gilt fund

HDFC Equity Saving fund SBI Equity Saving fund

HDFC Income fund SBI Magnum Income fund

HDFC Small Cap fund SBI Small Cap fund

HDFC Hybrid Debt fund SBI Debt Hybrid

HDFC Tax Saving fund SBI Tax Advantage fund

HDFC Banking & PSU Debt SBI Banking & Financial

Fund Service Fund

HDFC Short Term Fund SBI Short Term Fund

HDFC Multi Asset Fund SBI Multi Asset Allocation

Fund

Table(2.1)

42
 CHAPTER-3

REVIEW OF LITERATURE

43
1. Varun Sagar Singal and Dr. Rishi Manrai (2018):

Performed a study on factors affecting investment in mutual funds which was published in
Journal of General Management. The study aimed at findings out the factors affecting
investment decision on mutual funds and the impact of behavioural factors on an investor. It
also stated the factors that prevented the people to invest in mutual funds. The findings helped
the companies to identify the areas required to be improved and to improve their market
strategies.

2. Inderjit Kaur, CP Gupta, KP Kaushik (2018):

A research on impact of dynamic risk strategies of mutual fund on their performance:

evidence from Indian Equity Mutual Fund, which was published in South Asian Journal of
Management. The objective of the paper was to study the impact of dynamic behaviour of
mutual fund managers on their performances. Based on data of 152 diversified growth equity
mutual funds in India from 33 AMCs for the period 2003-2013, the study found some
negative impact of dynamic risk strategy mutual funds but found more number of positive
performing mutual fund.

3. Sweta Goel, Mute Mani (2018):

A research on predictions of future performances of mutual funds on the basis of past

performances. The paper analyzed and presented the empirical evidences with regard to the
performance persistence of mutual fund schemes and examined whether their past
performances provides useful information for predicting the future performance. For the study
a sample of 44 mutual fund schemes had been analyzed for a period of 8 years form April
2005 to March 2013. Various parametric and non-parametric techniques were taken into
consideration. They used regression analysis which resulted that performance presence of
mutual fund in past do matters.

4. R. IdhayajothiDr.O. T. V. Latasri (2015):

A study on performance of SBI Mutual Fund in Tamil Nadu which was published
inInternational Journal of Advanced Research in management and Social Sciences.The study
covered level of performance of SBI mutual funds based on investment pattern, motivated
factors investment, factors influencing investor’s investment decisions, investment patterns,
investment portfolio, savings avenues, investment preference, level of satisfaction, various
mutual fund savings, problems faced by the investors and risk factors.

44
 5. Prafulla Kumar Swain and Manoranjan Dash (2017):

A research on literature review on investors' perception towards Mutual Funds with reference
to performance, risk - return, and awareness published in Indian Journal of Finance. The study
was an attempt to do a diagnostic analysis of past literature, though a lot of research had been
done on investors' perception on mutual funds. In the study performed by them, literature
review on various dimensions with respect to the measurement of performance, risk - return
trade off of mutual funds, and investors' awareness, education, and interest regarding mutual
funds was examined to clear the gateway for the upcoming researchers in the field of the
mutual fund industry.

6. Ms. Dhanalakshami K (2013):

A research on the topic a comparative analysis on performance of SBI and HDFC Equity,
Balanced and Gilt Mutual Fund where she compared and analyzed the performance of SBI
and HDFC Mutual Funds with special reference to Equity, Gilt and Balanced Mutual Funds
using ratios such as Sharpe Ratio, Treynor’s Ratio and Jensen Ratio. The study covered three
years’ performance of the funds, from January 2010 to December 2012. Study done by her
concluded that the funds fluctuate in their performance according to the market conditions i.e.
the volatility was affected by market returns of the schemes in the year 2010 and 2011,
whereas performance of the schemes revived better in the year 2012. Overall the study
conducted revealed that investment in HDFC (Equity, Balanced, and Gilt) Mutual Fund was
better when compared to the SBI Mutual funds over the specified period of time.
7. JankS (2010):

In his paper discussed on whether there are disadvantages clienteles in mutual funds
mentioned that mutual fund investors always chase past performance, even though
performance is not persistent over time. This means that investors buy mutual funds which
had high return in past. On the other hand, few investors are reluctant to withdraw their
money from the worst performing funds. This behaviour is often been attributed to the
irrationality of mutual fund investors and their appointed managers.

Sophisticated investors rationally chase past performance, because high past performance is a
signal for managerial ability. No significant differences is found between investor
composition of the worst performing funds and those with average performance.

45
8. Divya K. (2012):

In the article a comparative study on evaluation of selected Mutual Funds in India from
International Journal of Marketing and Technology suggested that managers whose
performance is below benchmark index should be relooked their investment strategies and
asset allocation system and update with the new investments. Investing styles should be
redesigned accordingly to up & down done by the market to generate superior performance.
To increase the efficiency and popularity of mutual funds, the regulator should set the
standard criteria of benchmarks which will be helpful to asset management companies and
their fund managers too which will lead to profit for investor.

9. Sonali Senapati and Shaila Srivastav (2018):

Did a research on awareness and perception about the investment in mutual funds. The
analysis suggested that the growth of investment in Mutual Funds have been increased
significantly between 2000 and 2018. Majority of the respondents saved less than 20% of
their income and maximum respondents preferred to invest in Mutual Funds. The reason
given by them for preference of Mutual Funds was high returns, diversified portfolio and low
cost. It was alsofound that 61% of the respondents preferred investing in mutual funds and
58% of the respondents in saving banks deposit. Majority of the respondents (70%) preferred
Systematic. Investment plan (SIP) rather than going for other schemes. About 70% of the
respondents got information about different funds from newspaper/internet while 58 % of the
respondents get it from Financial institutions where they appointed fund managers to look
after their funds. Very few studies were conducted on the awareness and perception about
Mutual Funds. The findings of the study were useful for fund managers in the industry and
companies associated and also for the investors too.

10. Dr. Vinay Kandpal& Prof. P C Kavidayal (2013):

Performed a research on Public and Private Sector Mutual Funds in India. He studied
following schemes of different sectors for the purpose of research schemes such as equity
diversified schemes of SBI, UTI and CANBANK Public Sector and Franklin Templeton,
HDFC and Reliance Private Sector Mutual Fund houses were selected. The paper concluded
that private sector Mutual funds have shown better performance as compared to public sector

46
 mutual funds due to better funds allocation, better management and efficient performance of
portfolio Manager.

11. James, Thomas:

A study on performance evaluation of SBI Mutual Fund selected schemes in relation to risk,
return, rivalry and market comparison.The study was helpful in tracing the performance of top
mutual funds and compared the mutual fund based on their srisk bearing capacity and
expected returns of the investors and also carried out an analysis of the portfolio of the
selected mutual fund. The study was to evaluate the SBI Mutual Funds selected schemes
performance and its rivalries and also guided the investor in selecting the right fund. Only
three most preferred Equity Growth schemes were taken into consideration i.e. SBI Magnum
equity Fund, SBI Magnum Tax Gain Fund and SBI Emerging Business Fund (Mid Cap
Scheme) of SBIMF and similar competitive schemes.The primary purpose was to study on the
risk, return and performance of various schemes at SBI Mutual Fund and its competitors. The
statistical tools such as Mean returns, Standard deviation, Beta, Alpha and also theoretical
parameters such as Sharpe's performance index, Treynor's index and Jensen index were used
for analysis.

12. N. Bhagyasree (2016):

A post graduate student did a study on performance evaluation of mutual funds in India. The
paper investigated the performance of open-ended, growth-oriented equity schemes for the
period from April 2011 to March 2015 of transition economy. A watch on daily closing NAV
of different schemes were used to calculate the returns from the fund schemes. BSE-Sensex
was used for market portfolio. Sharpe, Treynor, and Jensen’s measure were evaluated on past
performances of the schemes whose results were useful for investors for taking better
investment decisions. The study revealed that 14 out of 30 mutual fund schemes had
outperformed the benchmark return. The results also showed that some of the schemes had
underperformed; these schemes were facing the diversification problem.The Sharpe ratio
showed positive effects for all schemes which showed that funds were providing returns
greater than risk free rate. Results of Jensen measure revealed that 19 out of 30 schemes were
showing positive alpha which indicated superior performance of the schemes.

13. Dr. Shri Prakash Soni, Dr. Deepali Bankapue, Dr.MaheshBhutada, (2015):

47
 A comparative analysis of mutual fund schemes available at Kotak Mutual Fund and HDFC
Mutual fund. The study concluded that Kotak Mutual Fund schemes were more destructive in
Large Cap Equity schemes and HDFC Mutual Fund schemes were more destructive in Mid
Cap Equity schemes where as both the companies schemes were very well managed in debt
market. For Kotak Select Focus Large cap Equity fund was the best scheme, whereas for
HDFC Mid-Cap was the best scheme and also HDFC Balanced Fund was found to be the best
scheme in Balanced Fund for investment.

14. Desigan et al (2006):

Performed a study on women investors perception towards investment and found that women
investor are in decisive for investing their money in mutual funds due to various reasons like
lack of knowledge regarding investment protection and their various investment procedures,
market fluctuations, risk associated with those investments, assessment of investment and
redressal of grievances regarding various investment related problems. Savings is a habit
specially embodied into women and that’s the reason that they are a lot conscious for
investing in mutual funds with less knowledge. When women earlier were dependent on their
spouse’s income, they used to save to meet future emergencies. In those days, women didn’t
have any awareness about various investment outlets .But as time passed, the scenario has
totally changed. Nowadays women have learnt that saving is not the ultimate objective but to
invest that money in proper place is the main objective.

15. Dr.V.Rama Devi and Nooney Serein Kumar (2010):

In the paper named performance evaluation or study between Indian and foreign equity
mutual funds and evaluated the performance of different equity mutual funds on the basis of
return and risk parameters, and also evaluated performance on risk adjusted measures by
Sharpe, Treynor and Jensen. They selected Indian and foreign equity mutual funds and
classified them into categories. Foreign equity diversified as foreign equity index, tax saving,
and technology funds and similarly Indian equity funds were diversified in same categories.
In paper they concluded that both Indian and foreign equity mutual funds differed from their
respective investment style. During the study they found that there was a tremendous growth
in the industry as they have more solid funds to offer and the risk is also diversified unlike
any financial institution offers.

16. O.V.A.M.Shridevi (2018):

48
 Did an analysis on performance on selected mid cap and small cap mutual funds. The study
was to know the current status of mutual funds in India, and to measure the risk- return
relationship and market volatility of the mutual funds selected. Samples of mid cap and small
cap funds were collected and various tools like Sharpe, Treynor and Jensen were used to
measure performance.The study showed that out of the two scheme of both mid cap and small
cap funds have evidences of outperforming the benchmark return and not all the funds have
represented positive values. However from the above study it can be said that the schemes
have diversified results.

17. Nisha Malik (2013):

conducted a research paper on portfolio management where she found that portfolio is a
combination of various securities. Portfolio is constructed with the help of traditional
approach as well as modern approach. The main objective of portfolio management is to help
the investor in investing in various securities so, that risk is minimized and they get higher
yield of return. In traditional approach the constraints, investors need for current income and
constant income were analyzed. Traditional approach took the entire financial plan of the
individual investor. In the modern approach Markowitz model was used. More importance
was given in this concept to risk and return analysis

18. Y. Prabhawati, N.T. Kishore (2013) :

A study on investor’s perception towards mutual funds and future investments. The research
was conducted in Hyderabad where the data was gathered by a personal interview on few
questions. In the study it was found thatinvestors are a bit cautious in selecting the schemes,
sectors and various asset management companies. Mutual fund industry where we found
enormous growth, if better controlled by market regulators with their strict regulations, the
resources can be better allocated in an emerging market economy. And also investors will
prefer to invest in funds without any further thinking.

19. Mr. Sunil M. Adhav (2015):

India’s mutual fund market has witnessed phenomenal growth over the last decade. The
consistency in the performance of mutual fund has been a major factor that has attracted many
investors. The study was an attempt to study comparative performance of mutual fund of
selected mutual fund companies. The study focused on selected companies comprising of
Equity, Debt, Hybrid schemes. The total of 390 schemes for considered of which 178 equity

49
 funds, 138 debt schemes, and 74 hybrid schemes were selected. The performance was
analyzed with the help of risk, return of the funds and then compared with their benchmark.

20. MS Shalini Goyal and MS Dauli Bansal (2013):

The paper was about the mutual fund status in India. The paper says where and how the
investors should invest their money i.e which mutual fund should they invest in. the paper
showed the concequences of investing in mutual funds without any knowledge and how
dangerous it could be. The paper highlighted on the diversification of risk associated with
investing in mutual funds.

21. Simran Saini (2011):

Indian mutual fund industry have faced popularity in last few years. The study analyzed the
mutual fund investment in relation to investors behaviour. Their perception and behaviouris
studied relating to various issues like type of mutual fund scheme, main objective behind
investing in mutual fund scheme, role of financial advisors and broker, investors opinion
relating to factors that attract them to invest in mutual funds, sources of information,
drawbacks in the services provided by the mutual fund managers so these were few issues
found in the study.

22. Bhaskar Biswas (2012):

The study was on best performance and under performance of diversified funds, by studying
the performance of some ten best and ten worst performing diversified equity mutual funds
for the period from 2009 to 2012. Selected diversified equity funds were analyzed through
arithmetic mean return, risk analyses by standard deviation, beta measures for market
sensitivity, alpha measures the risk return relationship and Sharpe ratio measures the risk
premium of portfolio.

23. Dhanda, Batra and Anjum, (2012)

A study on performance evaluation of selected open ended schemes in terms of risk and return
relationship. Rate of return method, Beta, Standard Deviation, Sharpe and Treynor ratio were
used.BSE-30 was used as a benchmark to study the performance of mutual funds in India.
The findings of the study revealed that only three schemes were performing better.

50
24. Fiza Qureshi and Saba Qureshi (2017):

The growth of mutual fund industry did show a remarkable increase in past few years. The
current study reviewed the performance and role of mutual funds at both micro and macro
level. The study sheds light on the mutual funds and their association with market variables
and macro economy. The study discussed the great work of literature in context of fund-
return, fund-volatility, funds-variables-economy and predictive ability of mutual fund flows.
The study further proposed to examine these relationship in context of developing and
emerging markets using PVAR and GMM models. The findings of the study benefited
investors, policy makers and academicians.

25. V Kannan and SheebaFathima (2016):

Nowadays investors face the problem of choosing the best scheme among the multiple options
available in the market. The paper was an attempt to evaluate the performance of selected
schemes of different mutual funds in India. The sample consisted of 35 mutual fund
companies and 500 equity schemes. The paper gave an idea to investors on the various
indicators used to evaluate a mutual fund. NAV details of the schemes selected were collected
to find out the value, and based on that value mutual funds are ranked. The major indicators
used were Sharpe ratio, Treynor ratio, and Beta. Moving trend lines and average were used to
analyse mutual funds.

51
 CHAPTER-4

ANALYSIS AND INTERPRETATION

52
 ANALYSIS AND INTERPRETATION:

Data analysis and interpretation is the process of assigning meaning to the collected
information and determining the conclusions, significance and implications of the findings. It
is an important and exciting step in the process of research. In all research studies, analysis
follows data collection . The evaluation off under performance is considered important as it
influences the investor’s decision regarding the allocation of their money into different
mutual fund schemes. The study applies the models of Treynor,Sharpe, Standard, Deviation,
Beta, Jensen etc, for collecting secondary information.

4.1. DATA COLLECTED BY PRIMARY SOURCE:

.
Name:

1 .What is age?

Age 18-30 31-45 45-60 60 & above

Response 82.8% 14.1% 3.1% 0%

Table 4.1

Interpretation:

According to the pie chart out of around 100 respondents the most are in the age group of 18-
30 years i.e. 82.8% (approx.), the second most investors are in the age group of 31-45 years
i.e. 14.1% (approx.) and the least investors are in the age group of 45-60 years i.e. 3.1%
(approx.).
2. Gender :

Gender Male Female Prefer not to

say

Response 57.8% 42.2% 0%

Table 4.2

Interpretation:

In the following interpretation the male female ratio of our respondents is being presented
with the help of google forms in pie chart where 42.2% of them were Male, 57.8% of female
and remaining were others.

3: What is your qualification?

Under graduate Working House

Qualification graduate wife

Responses 57.8 18.8 21.9 1.5%

54
 Table 4.3

Interpretation:

Out of around 100 respondents 57.8% of them are under graduate as the sample selected was
more of college students, later 18.8% were working investors, 21.9% as graduate and the least
1.5 as other house wife.

4: What is your monthly income?

Income NIL 10000-20000 20000-40000 Above

40000
Responses 54.7% 28.1% 14.1% 3.1%

Table: 4.3

55
 Interpretation:

In occupation group of respondents i.e. investors, around 54.7% of them were having no
income because as stated the sample group used was more of under graduate, graduate which
may not be working yet, 28.1% as income group of 20000-40000 monthly, least was above
40000 with 3.1% .

5 : From where did you come to know about mutual funds?

Sources Friends Family Newspaper Advertisement

Response 29.7% 25% 10.9% 34.4%

Table: 4.5

Interpretation:

From the above chart it can be noted that the advertisement is the most important source of
information about Mutual Fund with approx. 34.4% by advertisement , 29.7% by friends,
25% by family and 10.9% through newspaper.

56
6: Are you aware about mutual fund?

Awareness Yes No Maybe

Responses 60.9% 12.5% 26.6%

Table: 4.6

Interpretation:

Out of around 100 respondents most of them knew about mutual funds very well and the
others which didn’t know about it had basic information regarding to it. 60.9% of them knew
about Mutual fund and 12.5% of them did not about mutual fund and 26.6% of them maybe
they know about mutual fund.

7: What is your preference while investing?

Preferences Risk Return Liquidity All the

above

Response 21.9% 32.8% 12.5% 32.8%

57
 Table: 4.7

Interpretation:

As in the above chart we can see that most of the investors go for all the three options i.e.
return of the security. Out of 100 respondents 32.8% of them prefer all the three factors,
32.8% of them go for return which is highest among all, risk go hand in hand with 21.9% and
liquidity go hand in hand with 12.5%

8: Are you aware of SBI and HDFC Mutual Fund?

Aware Yes No Maybe

Response 45.3% 25% 29.7%

58
 Table : 4.8

Interpretation:

Out of 100 investors many of them knew the AMC’s named SBI and HDFC. In the above
chart we can conclude very well that 45.3% of them have selected yes which indicated that
such number of respondents know about mutual fund Company, 25% of them told no and
remaining that is 29.7% went for neither yes or no.

9. In which Mutual Fund company would you invest?

Company SBI HDFC UTI NOT NIL

INVEST
Response 51.6% 43.8% 28.1% 1.6% 1.6%

59
 Table: 4.9

Interpretation:

In the chart we can see that most of the investors preferred HDFC Mutual Fund and SBI
Mutual Fund for investing their money. Out of the total respondents 43.8% of them went for
HDFC,51.6% for SBI, 28.1% for UTI and remaining 3.2% for other companies.

10: Would you recommend investing in Mutual Fund?

Recommend Yes No Maybe

Response 65.6% 9.4% 25%

Table: 4.10

Interpretation:

As found in the survey many of the investors knew about mutual fund and they also preferred
companies of their choice, so knowing that whether they would recommend others for the
same was an interesting part. So in above chart we can see that highest percentage 65.6% is
for option Yes that means investors may recommend others also to invest in mutual fund, and
very few went for maybe.
 4.2 Data collected by secondary source.

Few funds were selected of both the companies which are mentioned above in chapter 3.
Analysis is done on following basis such as return, and risk ratios.( The whole data is
calculated from Money control)

1: HDFC Gilt Fund and SBI Magnum Gilt Fund:

HDFC Gilt fund SBI Magnum Gilt
fund
Category Growth Growth

Class Gilt fund Gilt fund

Type Open-Ended Open-Ended

Inception May 07, 0001 Feb 01, 2001

date

AMC Rs.376,597.57 Rs.320,662.84

asset (in
crore)
NAV Rs.40.60410 Rs.46.42860
(in Rs)
Launch 25-July-2001 23-Dec-2000
date

(4.1)

a) Return (NAV as on February 2020):

Annualized HDFC Gilt SBI Magnum

Return Fund Gilt fund
3 year 6.72% 8.67%

5 year 7.35% 8.86%

10 year 8.17% 9.57%

61
 As we can see that above table shows the annualized return of the two funds which are HDFC
Gilt Fund and SBI Magnum Gilt Fund. The data of three, five and ten years have been taken.
The returns if compared of both the funds SBI fund gives more return as compared to HDFC
fund in all three consecutive years. SBI fund is having a return of 8.67%, 8.86% and 9.57% in
three years (3, 5,10 ). While HDFC fund shows quite a difference in returns if compared
(6.72% in 3rd year, 7.35% in 5th year, and
8.17% in 10th year)

b) RiskRatios are calculated on daily returns for last 3 years (Updated as on 31st January, 2020).

Risk Standard Beta Sharpe

Ratio Deviation

HDFC 3.39% 0.61% -0.04%

Giltfund

SBI Gilt 3.95% 0.73% 0.44%

fund

As in the above table risk ratios are used for analysis of fund. Ratios such as standard
deviation, beta and sharpe are used. The data conclude that if all three ratios are compared
SBI Magnum Gilt fund is highest then HDFC Gilt fund. HDFC fund negative in sharpe
method, while SBI have a positive 0.44 value. In beta there was not much difference.

2: HDFC Equity Saving Fund and SBI Equity Saving Fund

HDFC Equity SBI Equity

Saving Fund Saving Fund
Category Growth Growth

Class Equity Saving Equity Saving

Type Open-Ended Open-Ended

Inception May 25, 2015 N.A.

date

AMC asset Rs.376,597.57 Rs.320,662.84

(in crore)

62
 NAV Rs.37.58200 Rs.13.87370
(in Rs)
Launch 17-Sep-2004 27-May-2015
date
(4.2)

a) Return (NAV as on February 2020):

Annualized Return HDFC Equity Saving SBI Equity Saving Fund

1 year 7.34% 11.32%

2 year 3.61% 5.02%
3 year 6.03% 6.98%

As we can see that above table shows the annualized return of the two funds which are HDFC
Equity Saving Fund and SBI Equity Saving Fund. The data of one, two and three years have
been taken. As SBI fund was newly launched as compared to HDFC fund the comparison is
done to 1, 2 and 3 years. If both the funds are compared the return seen in SBI fund is more
compared to HDFC fund. HDFC fund being an old fund does not give good returns. SBI fund
was incurring 11.32% of return in 1 year and later saw a downfall in return.

b) RiskRatios are calculated on daily returns for last 3 years (Updated as on 31st January, 2020):
Risk Ratio Standard deviation Treynor Sharpe

HDFC Equity 4.55% 0.03% 0.26%

Saving Fund
SBI Equity 4.99% 0.04% 0.34%
Saving Fund

As in the above table risk ratios are used for analysis of fund. Ratios such as standard
deviation, treynor and sharpe are used. In standard deviation both the funds have high
volatility. In treynor’s ratio both the funds have almost same risk with a difference of

63
 0.01% and also in sharpe’s ratio we see similar kind of risk with not a much
difference.

3: HDFC Income Fund and SBI Magnum Income Fund:

HDFC SBI Magnum

Income Fund Income Fund
Category Normal Dividend
dividend
Class Medium to Medium to
long term long term
duration duration
Type Open-Ended Open-Ended

Inception Dec 18, 2014 Nov 30, 1998

date

AMC Rs.376,597.57 Rs.320,662.84

asset
(in crore)
NAV Rs.43.92590 Rs.50.39600
(in Rs)
Launch 19-Jan-2015 25-Nov-1998
date

(4.3)

a) Return (NAV as on February 2020):

Annualized HDFC Income SBI Magnum

Return Fund Income Fund
2year 7.91% 7.64%

3 year 5.91% 6.34%

5 year 6.57% 6.47%

As we can see that above table shows the annualized return of the two funds which are HDFC
Income Fund and SBI Magnum Income Fund. The data of one, two and three years have been
taken. If both the funds are compared the return seen in SBI fund is more compared to HDFC
fund. HDFC fund being a new fund compared to

64
 SBI fund gives much better returns. Both the funds doesn’t show much of the
differences as HDFC Fund and SBI Funds first year return if compared then gives an
difference of 0.27% only, whereas in second year HDFC’s value came down to 5.91% and
SBI’s value was 6.34% and eventually in third year saw a difference of 0.10% only.

b) RiskRatios are calculated on daily returns for last 3 years (Updated as on 31st January,
2020).

Risk Ratio Standard Beta Treynor

Deviation

HDFC Income 3.44% 1% -0.01%

Fund

SBI Magnum 2.69% 0.74% 0.03%

Income Fund

As in the above table risk ratios are used for analysis of fund. Ratios such as standard
deviation, Beta and Treynor are used. Beta value gives idea about how volatile fund
performance has been compared to similar funds in the market. Lower beta implies the fund
gives more predictable performance compared to similar funds in the market. If both the funds
are compared in respect to beta we can conclude that HDFC Income fund is much volatile
fund then SBI Magnum Income fund. Treynor’s ratio indicates how much excess return was
generated for each unit of risk taken. Higher the value means, fund has been able to give
better returns for the amount of risk taken.
According to treynor SBI fund is much better as it gives positive value.

4: HDFC Small Cap Fund and SBI Small Cap Fund:

HDFC Small SBI Small

Cap Fund Cap Fund
Category Dividend Dividend

Class Small Cap Small Cap

fund fund
Type Open-ended Open-ended

Inception Apr 03, 2008 Feb 14, 2006

date
65
 AMC Rs.376,597.57 Rs.320,662.84
asset
(in crore)
NAV Rs.20.59000 Rs.33.58570
(in Rs)
Launch 03-Apr-2008 09-Sep-2009
date
(4.4)

a) Return (NAV as on February 2020):

Annualized HDFC SBI Small

Return Small Cap Cap Fund
Fund
3 year 7.25% 13.33%

5 year 8.41% 13.52%

10 year 12.27% 18.86%

As we can see that above table shows the annualized return of the two funds which are HDFC
Small Cap Fund and SBI Small Cap Fund. The data of three, five and ten years have been
taken. The returns if compared of both the funds SBI fund gives more return as compared to
HDFC fund in all three consecutive years. Inspite of early launch of HDFC Fund it gives less
return then SBI fund.

b) RiskRatios are calculated on daily returns for last 3 years (Updated as on 31st January,
2020).

Risk Ratio Expense Ratio Sharpe

HDFC Small 2.08% 0.35%

Cap Fund
SBI Small Cap 2.2% 0.2%
Fund

66
 In the above table we have not compared the fund by any risk ratios specifically such as
standard deviation, beta or treynor but did by Sharpe ratio and Expense ratio. A good low
expense ratio is generally considered to be around 0.5% to 0.75% for an actively managed
portfolio, while an expense ratio greater than 1.5% is considered high. So if compared we can
say that both the funds are higher than 1.5% but HDFC Fund have low percentage then SBI
fund. And in sharpe ratio too HDFC Fund is high then SBI Fund.

5: HDFC Hybrid Debt Fund and SBI Debt Hybrid Fund:

HDFC Hybrid SBI Debt Hybrid

Debt Fund Fund
Category Monthly dividend Monthly dividend

Class Conservative Conservative

hybrid fund hybrid fund
Type Open-ended Open-ended

Inception Aug 12, 0003 Mar 04, 0001

date
AMC Rs.376,597.57 Rs.320,662.84
asset
(in crore)
NAV Rs.12.69560 Rs.13.03020
(in Rs)
Launch 26-Dec-2003 04-Apr-2001
date
(4.5)

a) Return (NAV as on February 2020):

Annualized HDFC Hybrid SBI Debt

Return Debt Fund Hybrid Fund
3 year 2.99% 4.26%

5 year 3.90% 5.62%

10 year 6.75% 6.63%

67
As we can see that above table shows the annualized return of the two funds which are HDFC
Hybrid Debt Fund and SBI Debt Hybrid Fund. The data of three, five and ten years have been
taken. As we can conclude that SBI fund is giving more return as compared to HDFC fund.
Only in 10th year we can see that there is increase in return of HDFC fund i.e. 6.75% which is
greater than that of SBI fund by 0.12%.

RiskRatios are calculated on daily returns for last 3 years (Updated as on 31st January, 2020).

Sharpe Jensen Beta Sharpe Jensen

Alpha Alpha

HDFC 4.85% 1.25% 0.03% -2.9%

Hybrid

SBI Debt 4% 1.01% -0.03% -2.57%

Hybrid
Fund

In the above table we have compared the fund by risk ratios specifically such as standard
deviation, beta, sharpe, jensen alpha. Both the funds show high volatility in standard deviation
method with just an difference of 0.85%, in beta calculation fund having low value is intended
to continue in future, therefore SBI fund is much more preferable. Sharpe ratio indicates how
much risk was taken to generate the returns.
Higher the value means, fund has been able to give better returns for the amount of risk taken,
SBI Fund shows an negative percent which indicates that one will get high risk to get returns.
Alpha indicates how fund generated additional returns compared to a benchmark, and both the
funds shows negative Jensen alpha value.

6. HDFC Tax Saving Fund and SBI Tax Advantage Fund:

HDFC Tax SBI Tax

Saving Fund Advantage
Fund
Category Growth Growth

Class ELSS ELSS

Type Open-Ended Close-Ended

68
 Inception Dec 18, 1995 Mar 21, 2012
date

AMC Rs.376,597.57 Rs.320,662.84

asset
(in crore)
NAV Rs.508.13200 Rs.43.90520
(in Rs)
Launch 02-Apr-1996 29-Mar-2012
date
(4.6)

a) Return (NAV as on February 2020):

Annualized HDFC SBI Tax

Return Tax Advantage
Saving Fund
Fund
2 year -1.53% 12.16%

3 year 4.26% 14.92%

5 year 4.25% 13.68%

As we can see that above table shows the annualized return of the two funds which are HDFC
Tax Saving Fund and SBI Tax Advantage Fund. The data of one, two and three years have
been taken. If both the funds are compared the return seen in SBI fund is more compared to
HDFC fund. HDFC fund being a older fund compared to SBI fund does not gives much better
returns. HDFC fund showed a loss in 2nd year and thereafter also it didn’t show much good
returns compared to SBI fund. So we conclude that SBI Tax Advantage fund is performing
better.

b) Risk Ratios are calculated on daily returns for last 3 years (Updated as on 31st January, 2020):

Risk Ratio Standard Beta Treynor Sharpe

Deviation

HDFC Tax 13.45% 0.97% 0.01% 0.08%

Saving Fund

SBI tax 15.42% 0.98% 0.11% 0.70%

Advantage
69
 Fund

In the above table we have compared the fund by risk ratios specifically such as standard
deviation, beta, sharpe, and treynor. In standard deviation method both the funds showed high
volatility but SBI fund was ahead of HDFC fund. Later in Beta method we can see that there
is less difference among the value i.e. 0.01%. and in other two formula, treynor and sharpe
SBI Tax fund is ahead of HDFC fund. Treynor ratio indicated higher the value high is the risk
so SBI fund is much riskier than HDFC Fund. While in sharpe SBI gives high value which
indicates that it will give high return as compared to HDFC fund.

8. HDFC Banking & PSU Debt Fund and SBI Banking & Financial Service Fund:

HDFC Banking & PSU SBI Banking & Financial

Debt Fund Service Fund

Category Growth Growth

Class Banking and PSU Fund The matic / sectorial

Type Open - ended Open – ended

In ception Date May 03, 2014 Feb 24, 2015

AMC asset (in crore) Rs.376,597.57 Rs.320,662.84

NAV (in Rs) Rs. 16.46560 Rs.20.71000

Launch Date 26-Mar-2014 26-Feb-2015

(4.7)

a) Return (NAV as on February 2020):

Annualized Return HDFC Banking & PSU SBI Banking &

Debt Financial Service Fund

1 year 11.28% 28.32%

2 year 8.89% 18.62%

3 year 7.94% 19.46%

70
 The above table is the comparison of two funds HDFC Banking and PSU Debt Fund and SBI
Banking & Financial Fund. The comparison is done on the basis of annualized return of 1, 2,
and 3 year. If we compare both funds we see that SBI fund is rocking by giving highest
returns in all three years then HDFC fund. SBI fund was launched one year later HDFC fund
and then too it gave much better returns. There is huge difference among both the funds, in
1st year itself SBI showed a leap with having NAV return of 28.32% while HDFC had 11.28%
and accordingly the SBI fund was ahead.

b) RiskRatios are calculated on daily returns for last 3 years (Updated as on 31st January,
2020):

Risk Ratio Standard Beta Treynor Sharpe

Deviation

HDFC Banking 2.10% 1.34% 0.01% 0.94%

& PSU Debt

Fund SBI 16.47% 0.96% 0.16% 0.91%

Banking &
Financial Service
Fund

The above table is about the comparison of performance of HDFC & SBI fund by various
methods such as Standard deviation, Beta, Treynor, Sharpe. Standard deviation of SBI
fund is more volatile than HDFC fund, which means HDFC being having low value shows
much predictable performance than SBI which have much high value. In treynor method
HDFC fund showed poor risk adjusted return while SBI gave better returns. In beta scenario
we see that value of HDFC is more than SBI, therefore SBI fund is much better.

9. HDFC Short Term Fund and SBI Short Term Fund:

HDFC Short SBI Short Term

Term Fund Fund
Category Growth Growth

Class Short Duration Short Duration

Type Open-ended Open-ended

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 Inception Apr 06, 2010 Jul 26, 2007
date
AMC Rs.376,597.57 Rs.320,662.84
asset
(in crore)

NAV Rs.22.56770 Rs.23.27960

(in Rs)

Launch 25-Jun-2010 27-Jul-2007

date
(4.8)

a) Return (NAV as on February 2020):

Annualised HDFC Short SBI Short

return Term Fund Term Fund
2 year 9.05% 8.42%

3 year 8.07% 7.45%

5 year 8.36% 7.93%

The above table is the comparison of two funds HDFC Short Term Fund and SBI Short Term
Fund. The comparison is done on the basis of annualized return of 2, 3, and 5 year. From the
comparison done it can be seen that HDFC fund have more annualised return as compared
to SBI fund. SBI Fund tends to be older than HDFC one but the returns that SBI fund is quite
less. Return indicated the performance of the fund very well, with that we can conclude that
HDFC Short Term fund is much better than SBI Short Term fund.

b) RiskRatios are calculated on daily returns for last 3 years (Updated as on 31st January,
2020):

Risk ratio Expense ratio

HDFC Short 0.39%

Term fund

SBI Short Term 0.84%

fund

72
 In the above table we have not compared the fund by any risk ratios specifically such as
standard deviation, beta or treynor’s but did by only Expense ratio. A good low expense ratio
is generally considered to be around 0.5% to 0.75% for an actively managed portfolio, while
an expense ratio greater than 1.5% is considered high. Both the funds show good low
expense ratio as both of them had ratio less than 1.5% but SBI fund had value more than
0.75% but less than 1.5% so it can be considered as good ratio. While on the other hand
HDFC fund have value less than 0.75% i.e.
0.39% which is much better than SBI if compared.

10. HDFC Multi Asset Fund and SBI Multi Asset Allocation Fund:

HDFC Multi SBI Multi

Asset Fund Asset
Allocation
Fund
Category Growth Growth

Class Multi asset Multi asset

allocation allocation
Type Open-ended Open-ended

Inception Jan 05, 2008 N.A.

date
AMC Rs.376,597.57 Rs.320,662.84
asset
(in crore)
NAV Rs.34.65500 Rs.29.45250
(in Rs)

Launch 17-Aug-2005 21-Dec-2005

date

(4.9)

a) Return (NAV as on February 2020):

Annualized HDFC Multi SBI Multi Asset

Return Asset Fund Allocation Fund

73
 3 year 6.66% 7.21%

5 year 6.98% 8.05%

10 year 8.92% 9.30%

The above table is the comparison of two funds HDFC Multi Asset Fund and SBI Multi Asset
Allocation Fund. The comparison is done on the basis of annualized return of 3, 5, and 10
year. By the comparison we can state that SBI Fund gives more annualized returns than that
of HDFC Fund. The returns of HDFC Fund were low in 3rd and 5th year but gave a rise in 10th
year with a difference of almost 2%, while on the other hand SBI Fund gave good returns
from start.

b) RiskRatios are calculated on daily returns for last 3 years (Updated as on 31st January,
2020):

Risk ratio Expense ratio

HDFC multi asset 2.76%

fund
SBI multi asset 1.9%
allocation fund

The expense ratio (ER), also sometimes known as the management expense ratio (MER),
measures how much of a fund's assets are used for administrative and other operating
expenses. A good low expense ratio is generally considered to be around 0.5% to 0.75% for
an actively managed portfolio, while an expense ratio greater than 1.5% is considered high.
Comparing both the funds state that expense ratio of both the funds are high than 1.5% which
means that they are considered to have high expense. But SBI Fund gives less value than
HDFC Fund i.e. 1.9% less than 2.76%, therefore we can say that SBI Fund is better than
HDFC Fund.

74
.

75
 Chapter-5

Conclusion and Findings

5.1 Findings:

Investments are made to earn returns but making investments involves bearing of some risks
on the part of investors. A higher return does not indicate a superior performance unless it is
compared with the level of risk taken. Higher returns may be the outcome of taking higher
risk. So, it is always important to consider risk and return for evaluating any investment

76
 alternative. Modern investment theory postulates that there is a positive relationship between
risk and return.

In the study of evaluating performance of SBI and HDFC Mutual funds their 10 similar
schemes were selected for comparison. The comparison was done on the basis of annualised
return, and risk ratios. In the study it was seen that in few funds the risk of HDFC fund was
more than that of SBI Fund but we cannot say which of the fund is better as both work side by
side. It was also examined that majority of mutual fund schemes have satisfied their investors
in terms of earnings returns commensurate to their risk and return objectives. In the study
most of the funds taken were of two categories i.e. Growth and Dividend (monthly/normal).
All the schemes have assumed relatively higher return in same cases and high risk in some but
have failed to generate that risk or return in second place.

The study also had a tax plan scheme which should generate high return at high risk which
was fulfilled by SBI tax saving scheme only. Expense ratio was used in three of the funds
named HDFC Small Cap fund & SBI Small Cap fund, HDFC Short Term fund & SBI Short
Term Fund, HDFC Multi Asset fund & SBI Multi Asset Allocation fund. In the first two
schemes HDFC Funds were better than SBI funds and in later one SBI Fund was better than
HDFC Fund.

The investors preference always lies in the money growth and handsome amount of return.
The growth and return of investment work as bread and butter for every investors. After bear
high risk in equity every investors follows the market and work accordingly. In the equity
based investments every investors prefer daily based updates because of transparency of his or
her investment. The transparency help in volatile market because ups and down.

The responses obtained on all 112 questionnaires were statistically analyzed and the results
are statistically tested. Below are the major observations drawn out of the analysis made:
• 18.50% of the investors aged were below 18 years, 43.50% investors aged between 18-
30 years, 30.60% investors aged between 31-60 years and 7.40% investors aged above 60.
• 41.10% of respondents were under graduate, 23.20% as graduate, 25.90% as working group
and remaining as 9.8% as other i.e. retired.
• 41.10% of the respondents knew about mutual funds through advertisement,

29.50% by friends, 18.80% by family and 10.70% by newspaper.

• Almost all the respondents knew about mutual funds only 18.90% of them didn’t knew
anything which were mostly of age group below 18.

77
• The preference of the investors was 41.40% for return, 35.10% for risk, return and liquidity,
and 11.70% for only risk and liquidity.
• 63.40% of them did knew about SBI & HDFC mutual funds, 21.40% didn’t knew and
remaining were confused regarding that.

5.2 Conclusion:

Indian mutual funds industry has grown several folds in terms of the number of
players, investors accounts, schemes offered, funds mobilisation and asset under
management (AUM). Mutual funds are the vibrant financial institutions which convert the
scattered savings into productive assets by investing them into capital market instruments.
These activities of mutual funds influence the short-term and long-term behaviour of savers,
growth of capital market and economy. in the process, mutual funds leads to the financial
deepening as well as intermediation. Mutual funds mobilise the savings of the people and
channelize it to the money and capital market.

Investor must be clear about the investment goals, expected returns and the desired allocation
into equities and debts. Selecting a mutual fund for investment is a filtering process that
involves eliminating funds based on the various characteristics that influence the performance
of the fund. The present study was based on both primary and secondary source of data, but
more it was towards secondary source. The information regarding mutual funds were
collected from the reports of Reserve Bank of India (RBI), Securities and Exchange board of
India (SEBI), Association of Mutual Funds in India (AMFI). Also these data of fund is
available on many online platforms like Value Research, Morning Star, and Money Control,
Paytm Money App., etc. The collected information were analyzed using the suitable portfolio
performance models such as Sharpe Ratio, Treynor Ratio, Beta, Jensen Alpha, Standard
Deviation, Expense Ratio.

The study of mutual funds revealed the investors low level of awareness and rising costs as
the mainstream problems of industry earlier, but now industry is expected to grow rapidly
owing to favourable economic and financial scenario. Competition in the industry is now
getting tougher day-by-day, which will lead to more product innovation in the market. It will
also cause a race among various mutual fund houses to offer the better returns to investors.

78
5.3 Suggestions:

The study of mutual funds indicates that low investor awareness, high cost, low
penetration, participation and misspelling by distributors are the main cause in India.
However, to make mutual funds industry as most attractive investment destination for small
investors at present as well as in upcoming time, we would need to do few changes in
regulations.

Investors education is an unspoken responsibility of the AMCs, which will inevitably lead to
increased penetration of their products. Mutual funds as institutional investors have to ensure
professional market analysis, optimum diversification of portfolio, minimising of risk and
optimising of returns.

Disclosure requirement should hold consistently across all AMCs in order for greater
transparency in the system. Information should be readily available and
communicated effectively to investors, so as to enable them to take informed decisions.

5.4 References:

1. https://www.moneycontrol.com/mutual-funds/compare-funds/all

2. Varun Sagar: Journal of general management research, vol: 5, issue 2, July 2018, page no.96-
107, Factors Affecting Investment in Mutual Funds.

3. Inderjit Kaur: A research on impact of dynamic risk strategies of mutual fund on their
performance: evidence from Indian Equity Mutual Fund, which was published in

79
 South Asian Journal of Management

Publication date 2018/1/1, Volume 25, Issue 1, Pages 1-21, Publisher AMDISA
Secretariat,

4. Sweta Goel: International Journal of Financial Services Management, page no.9

(2), May 2018 with 100 Reads DOI: 10.1504/IJFSM.2018.10014033

5. R. IdhayajothiDr.O. T. V. Latasri (2015): IOSR Journal of Business and

Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume16,

Issue6.Ver.I (Jun. 2014), PP 83-89www.iosrjournals.org.
6. Prafulla Kumar Swain and Manoranjan Dash (2017): in International Journal of

Economic Research14(9):209-19 ꞏAugust 2017with29, 461

7. Ms. Dhanalakshami K (2013):OSR Journal of Businessand Management (IOSRJBM)e-ISSN:

2278-487X, p-ISSN: 2319-7668. Volume 20, Issue 10. Ver. I (October. 2018), PP 36-
43www.iosrjournals.org
8. Jank S (2010):Published: 1 June 2013) Citation: Education Inquiry Vol. 4, No. 2, June 2013,
pp. 225–242
9. Divya K. (2012):Journal International Journals of Marketing and Technology Volume 2,
Issue 4. Pages238, 261, Publisher International Journals of Multidisciplinary Research
Academy

10. Sonali Senapati and Shaila Srivastav (2018):inThe Empirical Economics Letter

17(special):51 ꞏ December 2018 , Sept 26 2019

11. Dr. Vinay Kandpal& Prof. P C Kavidayal (2013): December 2013 with 394 Reads
Conference: "International Conference on Research in Marketing" (A Refereed International
Conference), At IIT Delhi, April 13 2014

12. N. Bhagyasree (2016): IJIRST–International Journal for Innovative Research in

Science & Technology| Volume 2 | Issue 11| April2016ISSN (online): 2349-6010

13. Dr. Shri Prakash Soni, Dr. Deepali Bankapue, Dr.MaheshBhutada, (2015):

IJRFM Volume 5, Issue 4 (April, 2015) (ISSN 2231-5985) International Journal of

80
 Research in Finance and Marketing (IMPACT FACTOR –4.088) page 69

14. Desigan et al (2006): page 64 Desigan et al. (2006), “Women Investor‟s

Perception towards Investment: An empirical Study”,Indian Journal of Marketing. Retrieved

from: http://www. google.com. (accessed on 22nd May 2010).

15. Dr.V.Rama Devi and Nooney Serein Kumar (2010):Publication date 2012

International Journal of Marketing, financial services & management research Vol.1

No. 4, April 2012, ISSN 2277 3622

16. -Journal of Arts, Science & Commerce E-ISSN2229-4686, ISSN2231-

4172International Refereed Research Journal ,www.researchersworld.com Vol–III, Issue3(3),

July 2012 [47] comparative study on performance evaluation of mutual fund schemes of
Indian companies.

17. M.S.Annapoornaand Pradeep K. Gupta: Tactful Management Research Journal • Volume 2

Issue 1 • Oct 2013

18. Deepak Agrawal, “Measuring Performance of Indian Mutual Funds” Finance

India , June 2011. Available at SSRN

19. P Alekhya, “A Study on Performance Evaluation of Public & Private Sector

Mutual Funds in India”, Asia Pacific Journal of Marketing & Management Review, Vol.1 No.
2, October 2012, Pp. 147 – 168.

20. OSR Journal of Economics and Finance(IOSR-JEF)e-ISSN: 2321-5933, p-ISSN:

2321-5925 PP66-74www.iosrjournals.org7thInternational Business Research

Conference66| PageIndian Education Society's Management College and Research Centre

Perception of Indian Investor towards investment in mutual funds with special reference to
MIP Funds

21. Panwar, Sharad and Madhmati , R.(2005). Characteristics and performance evaluation
of selected mutual funds in India. Paper presented at 9th capital markets conference. Indian
institute of capital markets, Mumbai.

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22. Malik, N.S. and Mittal, Suresh Kumar (2007). Performance evaluation of mutual funds in
India- A risk-adjusted return analysis amity management analyst. II(2).

23. Fiza Qureshi and Saba Qureshi (2017): Journal of Poverty, Investment and
Development www.iiste.org

ISSN 2422-846X An International Peer-reviewed Journal ,Vol.34, 2017

24. V Kannan and SheebaFathima (2016): Paper: Performance evaluation of selected mutual
funds schemes, Published in: International journal of research in commerce and management,
date: 07-01-2016

25. Srinivas Yadav C and Hemanth N C (2014): Asia Pacific Journal of ResearchVol: I Issue
XIV, February 2014ISSN: 2320-5504, E-ISSN-2347-4793, Performance of selected Equity growth
mutual funds in indian empirical study during 1st June 2010 to 31st May 2013.

26. Dr. Sarita Bahl and Meenakshi Rani (2012): International Journal of Marketing, Financial
Services & Management Research Vol.1 Issue 7,July 2012, ISSN 2277
3622,www.indianresearchjournals.com 67, A comparative analysis of mutual fund schemes in
India.

27. Prabakaran and Jayabal (2010): Finance India: The quaterlu journal of Indian

Institute of Finance.- Greater Noida, UP, ISSN 0970-3772, ZDB-ID 1130817-5,

Vol.24.2010,4, Page: 1347-1364. Performance evaluation of mutual fund schemes in India :
an empirical study.

28. Dr. Hitesh S. Viramgami (2009): Resource mobilization by Indian mutual fund industry,
Published in: Indian Journal of Finance, Volume 3, Issue 3, March 2009.

29. Dr. Susheel Kumar Mehta (2010): Published in: Indian Journal of Finance,

Volume 4, Issue 2, February 2010, State Bank of India vs Unit Trust of India: A Comparison
of Performance of Mutual Fund Schemes.

30. Sathya Swaroop Debasish: Investigating Performance of Equity-based Mutual Fund Schemes
in Indian Scenario, ISSN 2071-2162.

31. Jain and Gangopadhyay, (2012): Analysis of Equity Based Mutual Funds in India, DOI:
10.9790/487X-0210104.

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32. Adhav& Chauhan (2015): Comparative study of mutual funds of Selected Indian companies.
International Journal of Science, Technology & Management, Volume No.04, Issue No. 02.
pp 44 – 51. ISSN (online): 2394-1537.

33. Kumar Vipin and Preeti Bansal (2014): A Study on Investors’ Behavior towards Mutual
Funds in Rohtak, Haryana. International Journal of Engineering and Management Research.
Volume-4, Issue-1. pp 224-228. ISSN No.: 2250-0758.

34. Tarak Paul (2014): Customer Communication Dimension of Marketing Mix- A Review of
Gap between Mutual Fund Investors’ Expectation and Experience. Scholars Journal of
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2348-8875

35..https://shodhganga.inflibnet.ac.in

36..www.sbimf.com

37..https://www.moneycontrol.com

38..www.hdfcfund.com

39.https://www.amfiindia.com/

40.https://www.ijbmi.org/papers/Vol(6)9/Version-1/J0609017385.pdf

41.www.paisabazar.com

Annexure:

1. Name

2. Age criteria

a) 18-30

83
 b) 31-45
c) 45-60
d) 60 & above
3. Gender
a) Male
b) Female
c) Prefer not to say
4. Qualification
a) Undergraduate
b) Graduate
c) Working
d) Housewife
5. Monthly income
a) NIL
b) 10000-20000
c) 20000-40000
d) Above 40000
6. From where did you know to know regarding mutual fund ?
a) Friends
b) Family
c) Newspaper
d) Advertisement
7. Were you aware of mutual fund?
a) Yes
b) No
c) Maybe
8. What are your preferences while investing ?
a) Risk
b) Return
c) Liquidity
d) All the above
9. Are you aware of SBI & HDFC mutual fund ?
a) Yes
b) No

84
 c) Maybe
10. In which mutual fund would you invest in?
a) SBI
b) HDFC
c) UTI
d) Other
11. Would you recommend to invest in mutual fund ?
a) Yes
b) No
c) Maybe

85