GROWTH FUNDS AMONG VARIOUS ASSET MANAGEMENT

COMPANIES
A first review report
(Submitted by NAVEENKUMAR R, Roll No:1415MBA0079,Reg No: 68614100072)
1. NEED FOR THE STUDY.
Mutual Fund is a topic which is of enormous interest not only to researchers all over the
world, but also to investors.
India's mutual fund and stock market has witnessed phenomenal growth over the last few
years.
Mutual funds as a medium-to-long term investment option are preferred as a suitable
investment option by investors.
The mutual fund industry in India has seen dramatic improvements in quantity as well as
quality of product and service offerings in recent years.
Mutual Fund industry today, with about 34 players and more than five hundred schemes,
is one of the most preferred investment avenues in India.
2. REVIEW OF LITERATURE
A mutual fund is a common pool of money in to which investors with common
investment objective place their contributions that are to be invested in accordance with the
stated investment objective of the scheme. The investment manager would invest the money
collected from the investor in to assets that are defined by the stated objective of the scheme. For
example, an equity fund would invest equity and equity related instruments and a debt fund
would invest in bonds, debentures, gilts etc.
A Mutual Fund is a trust that pools the savings of a number of investors who share a
common financial goal. The money thus collected is then invested in capital market instruments
such as shares, debentures and other securities. The income earned through these investments
and the capital appreciation realised are shared by its unit holders in proportion to the number of
units owned by them. Thus a Mutual Fund is the most suitable investment for the common man

as it offers an opportunity to invest in a diversified, professionally managed basket of securities a

relatively low cost.
The advantages of investing in a Mutual Fund are:
Professional Management
Diversification
Convenient Administration
Return Potential
A number of studies on evaluating the performance of Indian Mutual Fund Schemes have been
conducted in India and foreign countries. Review of some of the studies is presented in the
following discussion: Jayadev (1996) evaluated the performance of two growth-oriented mutual funds namely
Mastergain and Magnum express by using monthly returns. Jensen, Sharpe and Treynor
measures have been applied in the study and the pointed out that according to Jensen and
Treynor measure Mastergain have performed better and the performance of Magnum was poor
according to all three measures.
Afza and Rauf (2009) in their study of open-ended Pakistani mutual funds performance using
the quarterly data for the period of 1996-2006. The study measure the fund performance by using
Sharpe ratio with the help of pooled time-series and cross sectional data and also focused on
different attributes such as fund size, expenses, age, turnover and liquidity. The results found
significant impact on fund performance. Debasish (2009) studied the performance of selected
schemes of mutual funds based on risk and return models and measures.
Sondhi and Jain (2010) examined the market risk and investment performance of equity
mutual funds in India. The study used a sample of 36 equity fund for a period of 3 years. The
study examined whether high beta of funds have actually produced high returns over the study
period. The study also examined that open-ended or close ended categories, size of fund and the
ownership pattern significantly affect risk-adjusted investment performance of equity fund.
The results of the study confirmed with the empirical evidence produced by fama (1992) that
high beta funds (market risks) may not necessarily produced high returns. The study revealed
that the category, size and ownership have been significantly determinant of the performance of
mutual funds during the study period.
Prabakaran and Jayabal (2010) evaluated the performance of mutual fund schemes. The study
conducted a sample of 23 schemes were chosen as per the priority given by the respondents in
Dharmapuri district covered a period from April 2002 to March 2007. The study used the
methodology of Sharpe, Jensen and Fama for the performance evaluation of mutual funds.
The results of the study found that 13 schemes out of 23 schemes selected had superior
performance than the benchmark portfolio in terms of Sharpe ratio, 13 schemes had superior
performance of Treynor ratio and 14 schemes had superior performance according to Jensen
measure. The Famas measure indicated in the study that the returns out of diversification were
less. Thus the India Mutual funds were not properly diversified.

3.1 PRIMARY OBJECTIVE

To study the performance of mutual funds of the selected companies
To identify the risk and return profile of the mutual funds
To know the which companies to give the better returns with low risk
To offers the investors to get right kind of schemes of Mutual Funds
To evaluate the performance different equity schemes based on data and rate of return
To suggest the investor about which mutual fund should be invest in better sector

3.2 SECONDARY OBJECTIVES

The scope of the project is confined to the mutual fund industry and my project deals
with only Mutual Funds performance.
The project considered the growth funds only.
The N.A.V considered on the basis of N.S.E and B.S.E
The Study is restricted to explain only the returns provided by the Mutual Funds from
various schemes.
The Study is restricted to explain only the returns provided by the Mutual Funds from
various schemes.

METHODOLOGY

A Research work requires a lot of information to be gathered. This information can be

gathered through 2 sources.
Primary Data
Secondary Data
Primary Data: - Primary source of data collection: In this method, we collect the data for the
first time i.e., first hand information through surveys, observations etc.,
Secondary Data: - Secondary source of data collection: In this method, we collect the
information which is readily available. The present project work is completely depending on
secondary sources of information gathering.
DATA COLLECTION
In the present project work the data has been collected from readily available source that
is secondary data like websites newspapers and magazines the sample size taken for study 5
companies.
The web Sites Visited
www.amfiindia.com
www.mutualfundindia.com
DATA ANALYSIS
Data for monthly closing price for the benchmark index (BSE-Sensex) were collected
from web site of Bombay Stock Exchange (www.bseindia.com). The present project work as
been analyzed using time series analysis with graphical presentation the formulae applied in the
calculation of Returns are as follows
Nav Returns
1. Average Returns =ri/n

2. Risk Returns =

5. WORK DONE SO FAR

Identification of research needs and its objective.

Methodology for collecting data chosen.
Data collection from various websites.
Formula used for data analysis.

6. WORK TO BE DONE

Tabular column preparation.

Data Collection and interpretation.
Concluding analysis result.
Future work.

7. LIMITATIONS
I have selected only few funds. So the study is not extensive.
The study was conducted for a period of 6weeks, so it could not be conducted intensively.
It is only limited to mutual fund industry.
The analysis is based on historical data and thus indicates the past performance which
may not always be indicative of the future performance..
It is very difficult to understand the investor attitude.
8 EXPECTED DELIVERABLES
Analyzed report on various Asset Management companies.
Calculation of Risk and return of different Asset Management Companies.
Line chart report based on interpretation of collected data.
REFERENCES

Books
1. Financial Management - I M Pandey - Tata Mc Graw Hill Publishing Limited.
2. Consumer Behavior 8th edition - Leon G. Anand Leslie Lazar Kunak - Prentice-hall India
publication.
3.

A Comparative analysis of mutual fund schemes in INDIA Dr. SARITHA BAHL;

MEENAKSHI RANI

Web sites:
www.amfindia.com
www.sebi.com
www.mutualfundindia.com
www.bseindia.com

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