CHAPTER-1

INTRODUCTION

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INTRODUCTION TO MUTUAL FUNDS AND TRENDS:

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 appreciations realized 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 at a relatively low cost.
The flow chart below describes broadly the working of a Mutual Fund.

A Mutual Fund is a body corporate registered with the Securities and Exchange
Board of India (SEBI) that pools up the money from individual/corporate investors and
invests the same on behalf of the investors/unit holders, in equity shares, Government
securities, Bonds, Call Money Markets etc, and distributes the profits. In other words, a
Mutual Fund allows investors to indirectly take a position in a basket of assets.

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 Mutual Fund is a mechanism for pooling the resources by issuing units to the
investors and investing funds in securities in accordance with objectives as disclosed in
offer document. Investments in securities are spread among a wide cross-section of
industries and sectors thus the risk is reduced. Diversification reduces the risk because all
stocks may not move in the same direction in the same proportion at same time. Investors
of mutual funds are known as unit holders.

The investors in proportion to their investments share the profits of losses. The
mutual funds normally come out with a number of schemes with different investment
objectives which are launched from time to time. A Mutual Fund is required to be
registered with Securities Exchange Board of India (SEBI) which regulates securities
markets before it can collect funds from the public.

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NEED OF THE STUDY

 The project’s idea is to project Mutual Fund Trends as a better avenue for
investment on a long-term or short-term basis.
 Mutual Fund is a productive package for a lay-investor with limited finances, this
project creates an awareness that the Mutual Fund is a worthy investment
practice.
 Mutual Fund is a globally proven instrument.
 Mutual Funds are ”Unit Trust” as it is called in some parts of the world has a long
and successful history, of late Mutual Funds have become a hot favorite of
millions of people all over the world.
 The driving force of Mutual Funds is the ‘safety of the principal’ guaranteed, plus
the added advantage of capital appreciation together with the income earned in the
form of interest or dividend.
 The various schemes of Mutual Funds provide the investor with a wide range of
investment options according to his risk bearing capacities and interest besides,
they also give handy return to the investor.
 Mutual Funds offers an investor to invest even a small amount of money, each
Mutual Fund has a defined investment objective and strategy.
 Mutual Funds schemes are managed by respective asset managed companies
sponsored by financial institutions, banks, private companies or international
firms.
 A Mutual Fund is the ideal investment vehicle for today’s complex and modern
financial scenario.
 The study is basically made to analyze the various open-ended equity schemes of
different Asset Management Companies to highlight the diversity of investment
that Mutual Fund offer.
 Thus, through the study one would understand how a common man could
fruitfully convert a pittance into great penny by wisely investing into the right
scheme according to his risk taking abilities.

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SCOPE OF THE STUDY

The study has been limited to analyse open –ended schemes of different asset
management companies namely SBI magnum, UTI, HDFC, Mutual funds and its trends
each scheme is analyzed according to its performance against the other, based on returns.

OBJECTIVES OF THE STUDY

1. To project Mutual Fund trends as the ‘productive avenue’ for investing activities.
2. To show the wide range of investment options available in Mutual Funds trends
by explaining its various schemes.
3. To help an investor make a right choice of investment, while considering the
inherent risk factors.
4. To understand the recent trends in Mutual Funds trends world.

LIMITATIONS OF THE STUDY

1. The study is limited only to the analysis of different schemes and its suitability to
different investors according to their risk-taking ability.

2. The study is based on secondary data available from monthly fact sheets, websites
and other books as primary data was not accessible.

The study is limited by the detailed study of various schemes of three AMCs.

RESEARCH METHODOLOGY

The methodology involves randomly selecting open-ended equity schemes of

different fund houses of the country. The data collected for this project is basically from
two sources, they are
1. Primary sources: Interview with a fund manager

2 Secondary sources: The monthly fact sheets of different fund houses and research
reports from banks. Collection of data from Internet and books

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ANALYTICAL TOOLS:

The impression created by a picture has much greater impact then detailed
explanation. Statistical data can be effectively presented in the form of diagram and
graphs. The diagram used as follows:-

Pie chart:

The pie charts are used to represent a component on a Percentage basis.each part
of a component is shown as the percentage of whole component.

Pie charts are used to represent the percentage share of equity, Debt & money
market components of balanced growth

Bar diagram:

The bar diagram are used specifically for categorical data series. They consist of
the group of equidistant rectangles, one for each group or category of data in which the
values of magnitudes are represented by length or height of rectangles.

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 CHAPTER-2

REVIEW OF LITERATURE

7
MUTUALFUNDS

DEFINITION & SETUP OF MUTUAL FUND

In “Mutual Fund Book”, published by Investment company of U.S.., “A

Mutual Fund is a financial service organization that receives money from shareholders,
invest it, earns returns on it, attempts to make it grows and aggress to pay the share
holders cash on demand for the current value of his “investment”. The investment
managers of the funds manage these savings in such a way that the risk is minimized and
steady return is ensured.
Securities and Exchange Board of India (Mutual Funds) Regulations, 1996
define ‘Mutual Fund’ as, “a fund established in the form of a trust to raise money through
the sale of units to the public or a section of the public under one or more schemes for
investing in securities, including, money market instrument

Characteristics of Mutual Funds

 A mutual fund actually belongs to the investors who have pooled their funds. The
ownership of the mutual fund is in the hands of the investors.
 A mutual fund is managed by investment professionals and others services
providers, who earn a fee their services, from the fund.
 The pool of the funds is invested in a portfolio of marketable investments. The
value of the portfolio is updated every day.
 The investor’s share in the fund is denominated by “units”. The value of the units
changes with the change in the portfolio’s value, everyday. The value of one unit
of the investment is called as the NET Asset Value or NAV
 The investment portfolio of the mutual fund is created accordingly to the stated
investment objectives of the funds.

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ORGANISATION OF A MUTUAL FUND:

There are many entities involved and the diagram below illustrates the
organizational set up of a Mutual Fund:

Mutual Fund Structure

SPONSOR:
Sponsor is the person who acting alone or in combination with another body
corporate establishes a mutual fund. Sponsor must contribute at least 40% of the net
worth of the Investment Managed and meet the eligibility criteria prescribed under the
Securities and Exchange Board of India (Mutual Funds) Regulations, 1996. The Sponsor
is not responsible or liable for any loss or shortfall resulting from the operation of the

9
Schemes beyond the initial contribution made by it towards setting up of the Mutual
Fund.
TRUST:
The trust deed provisions The Mutual Fund is constituted as a trust in
accordance with the provisions of the Indian Trusts Act, 1882 of the India Trusts Act,
1882 by the sponsor. The trust deed is registered under the Indian Registration Act, 1908.
TRUSTEE:
Trustee is usually a company (corporate body) or a Board of Trustees (body of
individuals). The main responsibility of the Trustee is to safeguard the interest of the unit
holders and Exchange Board of India (Mutual Funds) Regulations, 1996, the provisions
of the Trust Deed and the offer Documents of the respective Schemes. At least 2/3 rd
directors of the Trustee are independent directors who are not associated with the sponsor
in any manner.
ASSET MANAGEMENT COMPANY (AMC):
The AMC is appointed by the Trustee as the Investment Manager of the Mutual
Fund. The AMC is required to be approved by the Securities and Exchange Board of
India (SEBI) to act as an asset management company of the Mutual Fund. At least 50%
of the AMC are independent directors who are not associated with the Sponsor in any
manner. The AMC must have a net worth of at least 10 crore at all times.

REGISTRAR & TRANSFER AGENT:

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

Mutual Funds diversify their risk by holding a portfolio of instead of only one
asset. This is because by holding all your money in just one asset, the entire fortunes of
your portfolio depend on this one asset. By creating a portfolio of a variety of assets, this
risk is substantially reduced.
Mutual Fund investments are not totally risk free. In fact, investing in Mutual
Funds contains the same risk as investing in the markets, the only difference being that

10
due to professional management of funds the controllable risks are substantially reduced.
A very important risk involved in Mutual Fund investments is the market risk. When the
market is in doldrums, most of the equity funds will also experience a downturn.
However, the company specific risks are largely eliminated due to professional fund
management

TYPES OF MUTUAL FUNDS

TYPES OF MUTUAL FUNDS

Operational Investment Objective Asset class

Closed ended Growth Equity

Open ended Income Bond

Balanced Taxable Tax E

Money Market
(High Hybrid
Liquidity:<1yr)

Tax Free Index

International Money Market

Specialized Fund of Funds

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TYPES OF MUTUAL FUNDS SCHEMES
A Mutual Fund scheme can be classified into open-ended scheme or close-ended
scheme depending on its maturity period.

1. Open-ended Fund/Scheme
An open-ended fund scheme is one that is available for subscription and
repurchase on a continuous basis. These schemes do not have fixed maturity period.
Investors can conveniently buy and sell units at Net Asset Value (NAV) related prices
which are declared on a daily basis. The key feature of open-ended schemes is liquidity.

2. Closed-ended Fund/Scheme
A close- ended fund or scheme has a stipulated maturity period, e.g., 5-7 years.
The fund is open for subscription only during a specified period at the time of launch of
the scheme. Investors can invest in the scheme at a time of the initial public issue and
thereafter they can buy or sell the units of the scheme on the stock exchange where the
units are listed. In order to provide an exit route to the investors, some close-ended funds
give an option of selling back the units to the mutual fund through periods repurchase of
NAV-related prices. SEBI regulations stipulated that at least one of the two exit routes is
provided to the investor, i.e., either repurchase facility or through listing on stock
exchanges. These mutual fund schemes disclose NAV generally on a weekly basis.

By Investment Objective
A scheme can also be classified as growth scheme, income scheme, or balanced
scheme considering its investment objective. Such schemes may be open-ended schemes
as described earlier. Such schemes may be classified mainly as follows:

1. Growth/Equity-oriented Schemes
The aim of growth funds is to provide capital appreciation over the medium to long-
term. Such schemes normally invest a major part of their corpus in equities. Such funds
have comparatively high risks. These schemes provide different options to the investors
like dividend option, capital appreciation etc., and the investors may close an option
depending on their preference. The investors must indicate the option in the application

12
form. Mutual funds also allow investors to change the options at the later date. Growth
schemes are good for investors having a long- term outlook seeking appreciation over a
period of time.

2. Income/Debt-oriented Scheme
The aim of income funds is to provide regular and steady income to investors. Such
schemes generally invest in fixed income securities such as bonds, corporate debentures,
government securities and money market instruments. Such funds are less risky
compared to equity schemes. These funds are not affected because of fluctuations in
equity markets. However, opportunities of capital appreciation are also limited in such
funds. The NAVs of such funds are likely to increase in the short run and vice versa.
However, long-term investors may not bother about these fluctuations.

3. Balanced Fund
The aim of balanced fund is to provide both growth and regular income as such
schemes invest both in equities and fixed income securities in the proportion indicated in
their offer documents. These are appropriate for investors looking for moderate growth.
They generally invest 40%-60% in equity and instruments. The funds are also affected
because of fluctuation in share prices in the stock markets. However, NAVs of such funds
are likely to be less volatile compared to pure equity funds.

4. Money market or Liquid Fund

These funds are also income funds and their aim is to provide easy liquidity,
preservation of capital and moderate income. These schemes invest exclusively in safer
short-term instruments such as treasury bills, certificates of deposit, commercial paper
and inter-bank call money, government securities. Returns on these schemes fluctuate
much less compared to other funds are appropriate for corporate and individual investors
as a means to park their surplus funds for short periods.

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 5. Gilt Fund
These funds invest exclusively in government securities. Government securities
have no default risk. NAVs of these schemes also fluctuate due to changes in interest
rates and other economic factor as is the case with income or debt-oriented schemes.

6. Index Fund
Index funds replicated the portfolio of a particular index such as the BSE sensitive
index, S&P NSE 50 index (Nifty), etc. these schemes invest in the securities in the same
weight age comprising an index. NAVs of such schemes would rise or fall in accordance
with the rise or fall in the index, through not exactly by the same percentage due to some
factors know as ‘tracking error’ in technical terms. Necessary disclosures in this regard
are made in the offer documents of the mutual fund scheme.

These are also exchange traded index funds launched by the mutual funds are
traded on the stock exchanges.

Sector Specific Funds/Schemes

These are the funds/schemes, which invest in the securities of only those sectors
or industries as specified in the offer documents. E.g., pharmaceuticals, software, Fast
Moving Consumer Goods (FMCG), petroleum stocks, etc. the returns in these funds are
dependent on the performance of the respective sectors/industries. While these funds may
give higher returns, they are more risky compared to diversified funds. Investors need to
keep a watch on the performance of these sectors/ industries and must exit at an
appropriate time. They may also seek the advice of an export.

Tax Saving Schemes

These schemes offer tax rebates to the investors under specific provision of the
income Tax Act, 1961 as the government offers tax incentives for investment in specific
avenues e.g., Equities-linked Saving Schemes (ELLS). Pension schemes launched by the
mutual fund also offer tax benefits. These schemes are growth-oriented and invest

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predominantly in equities. Their growth opportunities and risk associated are like any
equity-oriented schemes.
Systematic Investment Plan (SIP)
Here the investor is given the option of preparing a pre-determined number of
post-dated Cheques in favor of the fund. He will get units on the date of the Cheques at
the existing NAV.

Systematic Withdrawal Plan (SWP)

As opened to the Systematic Investment Plan, the Systematic Withdrawal Plan
allows the investor the facility to withdraw a pre-determined amounts/units from his fund
at a pre-determined interval. The investor’s units will be redeemed at the existing NAV as
on the day.
ADVANTAGES OF MUTUAL FUNDS:
Professional Management:
Qualified professionals manage your money and they have research team that
continuously analyses the performance and prospects of companies. They also select
suitable investment to achieve the objectives of the schemes and expertise which will add
value to your investment. These fund managers are in a better position to manage your
investment and get higher returns.

Diversification:
The cliché, “don’t put all your eggs in one basket” really applies to the concept of
intelligent investing. Diversification lowers your risk of loss by spreading your money
across various industries. It is a rare occasion when all the stocks decline at the same time
and in the same proportion. Sector funds will spread your investment across only one
industry and it would not be wise for your portfolio to be skewed towards these types of
funds for obvious reasons.
Choice of Schemes:
Mutual Funds offer a variety of schemes that will suit your needs over a life time.
When you enter a new stage in your life, all you need to do is sit down with your
investment advisor who will help you to rearrange your portfolio to suit your altered
lifestyle.

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Affordability:
As small investors, many find that it is so not possible to buy shares of large
corporations. Mutual funds generally buy and sell securities in large volumes which allow
investors to benefit from lower trading costs. The smallest investor can get started on
mutual funds because of the minimal investment requirements. You can invest with a
minimum of Rs. 500 in a on a regular basis.

Tax Benefits:

Investments held by investors for a period of 12 months or more qualify for

Capital gains and will be taxed accordingly (10% of the amount by which the investment
appreciated, or 20% after factoring in the benefits of cost indexation, whichever is lower).
These investments also get the benefits of indexation.

Liquidity:
With open-ended funds, you can redeem all or part of your investment any time
you wish and receive the current value of the shares or the NAV related price. Funds are
more liquid than most investment in shares, deposits and bonds and the process is
standardized, making it quick and efficient so that you can get your cash in hand as soon
as possible.

Transparency:
The performance of a mutual fund is reviewed by various publications and rating
agencies, making it easy for investors to compare one to the other. Once you are part of a
mutual fund scheme, you are provided with regular updates, for examples daily NAVs, as
well as information on the specific investment made and the fund manager’s strategy and
outlook of the scheme.

Well Regulated:
All Mutual Funds are registered by SEBI and they function within the provision
of strict regulations designed to protect the interests of investors. The operations of
Mutual Funds are regularly monitored by SEBI.

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Flexibility:
Through features such as regular investment plans, regular withdrawal plans and
dividend reinvestment plans, you can systematically invest or withdraw funds
accordingly to your needs and convenience.

Low Costs:
Mutual Funds are a relatively less expensive way to invest compared to directly
investing in the capital markets because the benefits of scale in brokerage, custodial and
other fees translate into lower costs for investors.

RISKS ASSOCIATED WITH MUTUAL FUNDS

Investing in Mutual Funds, as with any security, does not come without risk. One
of the most basic economic principles is that risk and reward are directly correlated. In
other words, the greater the potential risk the greater the potential return. The types of
risk commonly associated with Mutual Funds are:
Market risk
Market risk relates to the market value of a security in the future. Market prices
fluctuate and are susceptible to economic and financial trends, supply and demand, and
many other factors that cannot be precisely predicted or controlled.
Political risk
Changes in the tax laws, trade regulations, administered prices, etc are some of
the many political factors that create market risk. Although collectively, as citizens, we
have indirect control through the power of our vote individually, as investors, we have
virtually no control.
Inflation risk
Interest rate risk relates to future changes in interest rates. For instance, if an
investor invests in a long-term debt Mutual Fund scheme and interest rates increase, the
NAV of the scheme will fall because the scheme will be end up holding debt offering
lower interest rates.

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Business risk
Business risk is the uncertainty concerning the future existence, stability, and
profitability of the issuer of the security. Business risk is inherent in all business ventures.
The future financial stability of a company cannot be predicted or guaranteed, nor can the
price of its securities. Adverse changes in business circumstances will reduce the market
price of the company’s equity resulting in proportionate fall in the NAV of the Mutual
Fund scheme, which has invested in the equity of such a company.

Economic risk

Economic risk involves uncertainty in the economy, which, in turn, can have an
adverse effect on a company’s business. For instance, if monsoons fail in a year, equity
stocks of agriculture-based companies will fall and NAVs of Mutual Funds, which have
invested in such stocks, will fall proportionately.

Credit risk:
In short, how stable is the company or entity to which you lend your money when
you invest. How certain are you that it will able to pay the interest you are promised, or
repay your principal when the investment matures?

Interest risk:
Changing interest rates affect both equities and bonds in many ways. Investors are
reminded that “predicting” which way rates wick go is rarely successful. A diversified
portfolio can help in offsetting these changes.

The broad guidelines issued for a Mutual Fund:

SEBI is the regulatory authority of Mutual Funds. SEBI has the following broad
guidelines pertaining to Mutual Funds:

 Mutual Funds should be formed as a trust under Indian Trust Act and should be
operated by Asset Management Companies.

 Mutual Funds need to set up a Board of Trustee Companies. They should also
have their Board of Directories.

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  The net worth of the Asset Management Company should be at least Rs.5 crore.

 Asset Management Companies and Trustees of a MF should be two separate and

distinct legal entities.

 The Asset Management Companies or any of its companies cannot act AS

managers for any other fund.

 Asset Management Company has to get the approval of SEBI for its articles and
Memorandum of Association.

 All Mutual Fund Schemes should be registered with SEBI.

 Mutual Funds should distribute minimum of 90% of their profits among the
investors.

ABSTRACT 1

A mutual fund us a form of collective investment that pools money from investors
and investors and invests the money in stocks, bonds, short-term .Money-market
instruments, and/or securities. The portfolio manager trades the funds underlying
securities, realizing a gain or loss, and collects the dividend or interest income. The
investment proceeds are then passed on to the individual investor.

The rationale behind a mutual fund is that there are large numbers of investors
who lack the time and or the skilled to manage their money. Hence professional fund
manager, acting on behalf of the mutual fund, manage the investments (investor’s money)
for their benefit in return for a management fee. The organization that manages the
investment is called the asset management company (AMC). Thus a mutual fund is most
suitable investment for the common man as it offers an opportunity to invest in a
diversified, professionally managed basket of securities at a relatively low cost.

There are certain criteria on the basis of which the performance of a mutual fund
can be assessed such as NAV, portfolio, risk and return as well as various expense ratios
like. Sharpe ratio, beta ratio, etc. This article also aims to give an insight on the futuristic
outlook of the mutual funds in India. New Funds are coming in the market such as Gold

19
Funds, Real Estate Funds etc. The various new trends in the field are explored to
understand Diversified growth and opportunities that are prevalent and that could be the
Probable future of Mutual Funds.

*Macro-economic factor affecting mutual funds in India & basis for evaluating fund
performance

ABSTRACT 2

This project is about how the Investor’s Behavior is changing and they are now
leaving behind the sacred investment options like the fixed deposits, company equity
linked investment options like most developed and developing countries the mutual fund
cult has been catching on in India. There are various reasons for this. Mutual funds make
it easy and less costly for investors to satisfy their need for capital growth, income
preservation.

And in addition to this a mutual fund brings the benefit of diversification and
money management to the individual investor, providing an opportunity for financial
success that was once available only to a select few. In this project I have given a brief
about economy, inflation, and equity and debt market.

Then it is explained how to cope with the inflation and how mutual fund is
one of the best investment option today. brief about mutual fund industry and the so
information about HDFC mutual fund and its various products are given.

*Changing trend of investment pattern in India and emergence mutual fund

Industry. (HDFC Asset Management Company)

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 CHAPTER- 3
INDUSTRY
&
COMPANY PROFILE

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Banking in India

Banking in India originated in the last decades of the 18th century. The oldest
bank in existence in India is the State Bank of India, a government-owned bank that
traces its origins back to June 1806 and that is the largest commercial bank in the country.
Central banking is the responsibility of the Reserve Bank of India, which in 1935
formally took over these responsibilities from the then Imperial Bank of India, relegating
it to commercial banking functions. After India's independence in 1947, the Reserve
Bank was nationalized and given broader powers. In 1969 the government nationalized
the 15 largest commercial banks; the government nationalized the six next largest in
1980.

Currently, India has 96 scheduled commercial banks (SCBs) - 27 public sector

banks (that is with the Government of India holding a stake), 31 private banks (these do
not have government stake; they may be publicly listed and traded on stock exchanges)
and 38 foreign banks. They have a combined network of over 53,000 branches and
17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector
banks hold over 75 percent of total assets of the banking industry, with the private and
foreign banks holding 18.2% and 6.5% respectively

Early history

Banking in India originated in the last decades of the 18th century. The first banks
were The General Bank of India which started in 1786, and the Bank of Hindustan, both
of which are now defunct. The oldest bank in existence in India is the State Bank of
India, which originated in the Bank of Calcutta in June 1806, which almost immediately
became the Bank of Bengal. This was one of the three presidency banks, the other two
being the Bank of Bombay and the Bank of Madras, all three of which were established
under charters from the British East India Company. For many years the Presidency
banks acted as quasi-central banks, as did their successors. The three banks merged in

22
1921 to form the Imperial Bank of India, which, upon India's independence, became the
State Bank of India.

Indian merchants in Calcutta established the Union Bank in 1839, but it failed in
1848 as a consequence of the economic crisis of 1848-49. The Allahabad Bank,
established in 1865 and still functioning today, is the oldest Joint Stock bank in India. It
was not the first though. That honor belongs to the Bank of Upper India, which was
established in 1863, and which survived until 1914, when it failed, with some of its assets
and liabilities being transferred to the Alliance Bank of Simla.

When the American Civil War stopped the supply of cotton to Lancashire from
the Confederate States, promoters opened banks to finance trading in Indian cotton. With
large exposure to speculative ventures, most of the banks opened in India during that
period failed. The depositors lost money and lost interest in keeping deposits with banks.
Subsequently, banking in India remained the exclusive domain of Europeans for next
several decades until the beginning of the 20th century.

Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The
Comptoired'Escompte de Paris opened a branch in Calcutta in 1860, and another in
Bombay in 1862; branches in Madras and Pondicherry, then a French colony, followed.
HSBC established itself in Bengal in 1869. Calcutta was the most active trading port in
India, mainly due to the trade of the British Empire, and so became a banking center.

The Bank of Bengal, which later became the State Bank of India.

The first entirely Indian joint stock bank was the Oudh Commercial Bank,
established in 1881 in Faizabad. It failed in 1958. The next was the Punjab National
23
Bank, established in Lahore in 1895, which has survived to the present and is now one of
the largest banks in India.

Around the turn of the 20th Century, the Indian economy was passing through a
relative period of stability. Around five decades had elapsed since the Indian Mutiny, and
the social, industrial and other infrastructure had improved. Indians had established small
banks, most of which served particular ethnic and religious communities.

The presidency banks dominated banking in India but there were also some
exchange banks and a number of Indian joint stock banks. All these banks operated in
different segments of the economy. The exchange banks, mostly owned by Europeans,
concentrated on financing foreign trade. Indian joint stock banks were generally
undercapitalized and lacked the experience and maturity to compete with the presidency
and exchange banks. This segmentation let Lord Curzon to observe, "In respect of
banking it seems we are behind the times. We are like some old fashioned sailing ship,
divided by solid wooden bulkheads into separate and cumbersome compartments."

The period between 1906 and 1911, saw the establishment of banks inspired by
the Swadeshi movement. The Swadeshi movement inspired local businessmen and
political figures to found banks of and for the Indian community. A number of banks
established then have survived to the present such as Bank of India, Corporation Bank,
Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India.

The fervour of Swadeshi movement lead to establishing of many private banks in

Dakshina Kannada and Udupi district which were unified earlier and known by the name
South Canara ( South Kanara ) district. Four nationalised banks started in this district
and also a leading private sector bank. Hence undivided Dakshina Kannada district is
known as "Cradle of Indian Banking".

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25
26
 HDFC MUTUAL FUND

Scheme : HDFC Equity Fund

Type : An Open - ended Growth Scheme
Inception Date : 01/01/1995
Fund Size : Rs.5400.17 Crore as on Dec 31th 2015
Asset Allocation : 95.77% in equity, 4.23%others
Minimum Investment : 5000
Entry Load : Nil
Exit Load : Below 50 lakh 0.5%, above 50lakh 1%
Investment Objective : Aims at providing capital appreciation through
investment predominantly in equity oriented
securities.

CHART SHOWING ASSET ALLOCATION OF HDFC EQUITY FUND

Interpretation: It is good to have 96%equity and no debt involved and lowest of 4% on

others. These show totally equity dominated type of investment fund. Which shows
higher risk and reward expected and factor which plays important part are market trend
and script taken for investment by investment management team and also the investor
who expect higher return on such investment.

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 HDFC OPEN-ENDED EQUITY GROWTH FUND

Jan30 June 30’ Jan 30 June 30 Dec 31

DATE
(2014) (2014) (2015) (2015) (2015)

NAV 189.91 153.17 103.75 172.87 230.25

Note: Fund performance and NAV values over a period of 2 years on half yearly basis

BAR GRAPH REPRESENTS THE PERFORMANCE OF THE FUND

(Jan2015-Dec2015)

INTERPRETATION:

The graph shows, her is higher return in every term of half yearly period when
compared to capital invested, the trend shows decreasing trend from jan2015 to Jan 2015
by 189.91% to 103.75%. These shows high amount of decrease in NAV due to high
amount investment in equity which is represent higher risk and market condition at time
of investment. And from Jan 2015 the performance has improved too much higher extent.
The fund has double till Dec 2015 when compared to Jan 2015,these shows the
investment in such fund is good for both short term and long term. and much higher
return can be expected on long term basis and is the best of all WRT to return expected
and growth/appreciation of capital.

28
 PERFORMANCE EVALUATION

We are interested in discovering if the management of a mutual fund is

performing well; that is, has management done better through its selective buying and
selling of securities than would been achieved through merely “buying the market”
picking a large number of securities randomly and holding them throughout the period?

One of the most popular ways of measuring management’s performance is by

comparing the yields for the managed portfolio with the market or with a random
portfolio.
The following formula can be used to evaluate mutual fund performance:-

= NAVt+Dt - 1 / NAVt-1

Where:
NAVt =per-share net asset value at the end of the year t.
Dt= capital appreciation during year.
NAV t-1=per-share net asset value at the end of the year t-1.

29
 CHAPTER-4
DATA ANALYSIS AND
INTERPRETATION

30
 PERFORMANCE EVALUATION OF BALANCED FUNDS

NAVt-1 = 30 June, 2017

NAVt = 31 Dec, 2017

1) SBI OPEN- ENDED BALANCED FUND

NAVt-1 NAVt D t (NAVt -- NAVt-1)

35.52 47.55 12.03

Applying the formula we get:-

= 47.55 + 12.03 - 1
35.52

= 0.6773*100

= 67.73 percentage of growth rate.

2) UTI OPEN- ENDED BALANCED FUND

NAVt-1 NAVt D t (NAVt -- NAVt-1)

52.90 72.76 19.86

Applying the formula we get:-

= 72.76 + 19.86 - 1
52.90
= 0.7508*100
= 75.08 percentage of growth rate

31
3) HDFC OPEN-ENDED INCOME FUND

NAVt-1 NAVt D t (NAVt -- NAVt-1)

31.42 45.00 14.58

Applying the formula we get:-

= 45.00+ 14.58 - 1
31.42

= 0.8644*100

= 86.44 percentage of growth rate.

BAR GRAPH SHOWING BALANCED FUND RANKING

32
INTERPRETATION:

In balanced mutual fund the HDFC NAV is high with 86.64% where as SBI
NAV is 67.76%. Through chart it can be analysed that though 67% is investment in
equities in Bearish Market, HDFC is able to limit its risk and tops the chart. And UTI is at
middle of both, higher than SBI & lower than HDFC at 75.08%. HDFC is quiet beneficial
when compared to other two, it is diversified balanced fund with a difference- for it does
not pursue anything fancy. It is meant for you, if you are scouting for chart buster with
eye popping returns.

FUND PERFORMANCE RANKING

NAME OF THE FUND NAV RANK

HDFC open-ended Balanced fund 86.64 1

UTI open-ended Balanced fund 75.08 2

SBI open-ended Balanced fund 67.73 3

33
 PERFORMANCE EVALUATION OF EQUITY FUNDS

NAVt-1 = 30 June, 2017

NAVt = 31 Dec, 2017

1) SBI OPEN- ENDED EQUITY FUND

NAVt-1 NAVt D t (NAVt -- NAVt-1)

27.68 38.59 10.91

Applying the formula we get:-

= 38.59 + 10.91 - 1
27.68

= 0.7882*100

= 78.82 percentage of growth rate.

2) UTI OPEN- ENDED EQUITY FUND

NAVt-1 NAVt D t (NAVt -- NAVt-1)

33.62 48.68 16.06

Applying the formula we get:-

= 48.68+16.06 - 1
33.62

= 0.8958*100
= 89.58 percentage of growth rate

34
3) HDFC OPEN-ENDED EQUITY FUND

NAVt-1 NAVt D t (NAVt -- NAVt-1)

153.17 230.25 87.08

Applying the formula we get:-

= 230.25+ 87.08 - 1
153.17

= 1.2164*100

= 121.64 percentage of growth rate.

BAR GRAPH SHOWING THE EQUITY FUND RANKING

35
INTERPRETATION:

In balanced mutual fund the HDFC NAV is high with 121.64% where as SBI
NAV is 78.82%. Through chart it can be analysed that though 96% is investment in
equities in Bearish Market, HDFC is able to limit its risk and tops the chart. And UTI is at
middle of both, higher than SBI & lower than HDFC at 89.58%. HDFC is quiet beneficial
when compared to other two, it is diversified equity fund with a difference- for it does not
pursue anything fancy. It is meant for you, if you are scouting for chart buster with eye
popping returns. If you want to settle for long term performer, this fund could surely be
your cup of tea.

FUND PERFORMANCE RANKING

NAME OF THE FUND NAV RANK

HDFC open-ended Equity fund 121.64 1

UTI magnum open-ended Equity fund 89.58 2

SBI open-ended Equity fund 78.82 3

36
 Trends in Mutual Fund Investing
April 2016

Washington, DC, May 28, 2016 - The combined assets of the nation’s mutual funds
increased by $43.78 billion, or 0.3 percent, to $16.18 trillion in April, according to the
INVESTMENT Company Institute’s official survey of the mutual fund industry. In the
survey, mutual fund companies report actual assets, sales, and redemptions to ICI.

Total Net Assets of Mutual Funds*

Billions of dollars

Apr 2017 Mar 2017 % change Apr 2016

Total long-term 14,617.6 14,493.9 0.9 12,645.5
Equity 8,675.4 8,577.0 1.1 7,920.1
Domestic equity 6,386.1 6,387.5 0.0 5,811.7
World equity 2,289.4 2,189.5 4.6 2,108.3
Hybrid 1,396.7 1,379.3 1.3 1,320.0
Bond 3,545.5 3,537.6 0.2 3,405.4
Taxable bond 2,968.3 2,958.1 0.3 2,881.5
Municipal bond 577.2 579.5 -0.4 523.9
Total money market 2,565.4 2,645.3 -3.0 2,573.5
Taxable money
2,322.0 2,388.3 -2.8 2,316.7
market
Tax-exempt money
243.4 257.0 -5.3 256.9
market
Total 16,183.0 16,149.2 0.3 16,219.0

37
 * Data for exchange-traded funds and funds that INVEST primarily in other mutual
funds were excluded from the series.

Note: Components may not add to the total because of rounding.

Net New Cash Flow of Mutual Funds*
Millions of dollars

Apr-17 Mar-17 Jan–Apr 2017 Jan–Apr 2016

Total long-term 5,626 15,540 74,495 1,10,264
Equity -1,377 5,049 24,766 59,488
Domestic equity -19,628 -8,783 -20,049 17,899
World equity 18,251 14,832 44,816 41,589
Hybrid 166 3,170 9,278 16,961
Bond 6,837 6,321 40,451 33,816
Taxable bond 6,432 4,839 31,334 28,959
Municipal bond 405 1,482 9,117 4,857
Total money
-81,327 -32,519 -1,61,384 -1,53,276
market
Taxable money
-67,490 -30,939 -1,53,927 -1,29,272
market

Tax-exempt money
-14,837 -1,580 -17,456 -15,004
market

Total -75,701 -17,979 -86,889 -33,012

* Data for exchange-traded funds and funds that INVEST primarily in other mutual funds
were excluded from the series.
Note: Components may not add to the total because of rounding. Highlights: Long-term
funds—equity, hybrid, and bond funds—had a net inflow of $5.63 billion in April, versus
an inflow of $15.54 billion in March.
Equity funds posted an outflow of $1.38 billion in April, compared with an inflow
of $5.05 billion in March. Among equity funds, world equity funds (U.S. funds that
INVEST primarily overseas) posted an inflow of $18.25 billion in April, versus an inflow
of $14.83 billion in March. Funds that invest primarily in the United States had an

38
outflow of $19.63 billion in April, versus an outflow of $8.78 billion in March. The
liquidity ratio of equity funds (the percentage of liquid assets over total net assets) was
3.4 percent in April, compared with 3.5 percent in March.
Hybrid funds posted an inflow of $166 million in April, compared with an inflow
of $3.17 billion in March.
Bond funds had an inflow of $6.84 billion in April, compared with an inflow of
$6.32 billion in March. Taxable bond funds had an inflow of $6.43 billion in April, versus
an inflow of $4.84 billion in March. Municipal bond funds had an inflow of $405 million
in April, compared with an inflow of $1.48 billion in March.
Money market funds had an outflow of $81.33 billion in April, compared with an
outflow of $32.52 billion in March. In April funds offered primarily to institutions had an
outflow of $56.88 billion and funds offered primarily to individuals had an outflow of
$24.44 billion.

39
 Number of Mutual Funds

Apr 2017 Mar 2017 Apr 2016

Total long-term 7,435 7,459 7,280
Equity 4,677 4,697 4,603
Domestic equity 3,248 3,264 3,231
World equity 1,429 1,433 1,372
Hybrid 663 664 626
Bond 2,095 2,098 2,051
Taxable bond 1,538 1,541 1,489
Municipal bond 557 557 562
Total money
523 526 552
market
Taxable money
361 363 379
market
Tax-exempt money
162 163 173
market
Total 7,958 7,985 7,832

* Data for exchange-traded funds and funds that INVEST primarily in other
mutual funds were excluded from the series.

40
 Exchange-Traded Funds
April, 2017
Washington, DC, May 29, 2016 - The combined assets of the nation’s
exchange-traded funds (ETFs) were $2.101 trillion in April, according to ICI. The
Institute’s monthly statistical collection also includes the value of shares issued and
redeemed by exchange-traded funds.
Statistics contained in the Institute’s monthly ETF report have been obtained from
information provided to ICI by exchange-traded funds and commodity funds. Commodity
funds are listed in the Domestic (Sector/Industry) category.

Assets of Exchange-Traded Funds by Type

Millions of dollars

April 2017 March 2017 April 2016

Total Domestic 1,256,574 1,268,915 1,055,933

Equity
Domestic (Broad-
925,199 934,414 766,226
Based)

Domestic
331,375 334,500 289,706
(Sector/Industry)

Global/International
518,792 472,549 412,480
Equity

Hybrid 3,625 3,416 1,821

Bond 321,877 318,114 263,351

All 2,100,867 2,062,991 1,733,586

41
 value of Shares Issued and Redeemed by All Exchange-Traded Funds
Millions of dollars

April 2017 March 2017 YTD 2017 YTD 2016

Gross Issuance 118,725 177,903 546,276 481,167

Gross 447,182
106,789 161,184 478,807
Redemptions

Net Issuance 11,936 26,718 67,469 33,975

Note: Components may not add to the total due to rounding.

Number of Exchange-Traded Funds by Type

April 2017 March 2017 April 2016

Total Domestic Equity 641 633 618

Domestic (Broad-Based) 323 316 302

Domestic (Sector/Industry) 318 317 316

Global/International Equity 521 514 454

Hybrid 20 20 16

Bond 273 273 248

All 1,455 1,439 1,335

42
 Highlights: Assets of all exchange-traded funds rose in April by $37.88 billion, or 1.8
percent, to $2.101 trillion. Over the past 12 months, ETF assets increased $367.28
billion, or 21.2 percent. Assets in domestic equity ETFs increased $200.64 billion
since April 2016, and global equity ETF assets rose $106.31 billion during this period.
At the end of April 2017, assets of bond funds were $321.88 billion and hybrid funds
were $3.63 billion.
During April, the value of all ETF shares issued exceeded that of shares
redeemed by $11.94 billion. In April 2016, the value of all ETF shares issued exceeded
that of shares redeemed by $19.47 billion.

Money Market Fund Holdings

May 2016

Washington, DC, June 16, 2017 - The INVESTMENT Company Institute (ICI) reports
that, as of May, prime money market funds held 25.43 percent of their portfolios in daily
liquid assets and 38.24 percent in weekly liquid assets, while government money market
funds held 62.79 percent of their portfolios in daily liquid assets and 79.98 percent in
weekly liquid assets.

Prime and Government Money Market Funds’ Daily and Weekly Liquid Assets
Percentage of total assets

Prime Money Market Funds 4/30/2017 5/31/2017

Daily liquid assets 23.32% 25.43%
All securities maturing within 1 day 18.16 21.16
Other treasury securities 5.16 4.27

Weekly liquid assets 37.61 38.24

All securities maturing within 5 days 31.14 32.33
Other treasury securities 5.02 4.24
Other agency securities 1.46 1.67
Government Money Market
4/30/2017 5/31/2017
Funds
Daily liquid assets 61.61% 62.79%
All securities maturing within 1 day 26.31 27.96
Other treasury securities 35.30 34.82

43
 Weekly liquid assets 80.24 79.98
All securities maturing within 5 days 39.45 39.52
Other treasury securities 33.08 32.75
Other agency securities 7.71 7.71

Holdings by Region of Issuer

Prime money market funds’ holdings attributable to the Americas declined from
41.57 percent in April to 41.53 percent in May. Government money market funds’
holdings attributable to the Americas rose from 84.37 percent in April to 85.75 percent in
May.

Prime and Government Money Market Funds’ Holdings, by

Region of Issuer*
Percentage of portfolio securities

Prime Money Market Funds All securities

Region 4/30/2017 5/31/2017 Difference
Americas 41.57% 41.53% -0.04
Asia and Pacific 19.61 19.45 -0.16
Europe 38.48 38.71 0.23
Supranational 0.19 0.18 -0.01
Other 0.17 0.15 -0.03
Total 100.00 % 100.00 % 0.00 %
Government Money
All securities
Market Funds
Region 4/30/2017 Region 4/30/2017
Americas 84.37% Americas 84.37%
Asia and Pacific 0.46 Asia and Pacific 0.46
Europe 16.16 Europe 16.16
Supranational 0.02 Supranational 0.02
Total 100.00% Total 100.00%
Government Money All Government Money All
Market Funds securities Market Funds securities

* Note: The region of the issuer is defined by location of the parent firm headquarters.

44
Percentages are calculated by adding up the amortized cost of all securities of the
indicated type by the region of the security’s issuer and dividing that amount by the total
amortized cost of all securities of the indicated type. The “other” category consists of
unclassified securities.

Weighted Average Maturities (WAMs) and

Weighted Average Lives (WALs)
At the end of May, prime funds had a weighted-average maturity of 38 days and
a weighted-average life of 75 days. Average WAMs and WALs are asset-weighted.
Government money market funds had a weighted-average maturity of 41 days and a
weighted-average life of 78 days.

Prime and Government Money Market Funds’ WAMs and WALs

Number of days
Prime Money Market Funds 4/30/2017 5/31/2017
Weighted Average Maturity 40 38
Weighted Average Life 78 75
Government Money Market Funds 4/30/2016 5/31/2016
Weighted Average Maturity 43 41
Weighted Average Life 82 78

Exchange-Traded Funds
April, 2017

Washington, DC, May 29, 2017 - The combined assets of the nation’s exchange-traded
funds (ETFs) were $2.101 trillion in April, according to ICI. The Institute’s monthly
statistical collection also includes the value of shares issued and redeemed by exchange-
traded funds.

Statistics contained in the Institute’s monthly ETF report have been obtained
from information provided to ICI by exchange-traded funds and commodity funds.
Commodity funds are listed in the Domestic (Sector/Industry) category.

45
 Assets of Exchange-Traded Funds by Type
Millions of dollars

April 2017 March 2017 April 2016

Total Domestic Equity 1,256,574 1,268,915 1,055,933

Domestic (Broad-Based) 925,199 934,414 766,226

Domestic (Sector/Industry) 331,375 334,500 289,706

Global/International Equity 518,792 472,549 412,480

Hybrid 3,625 3,416 1,821

Bond 321,877 318,114 263,351

All 2,100,867 2,062,991 1,733,586

Value of Shares Issued and Redeemed by All Exchange-Traded Funds

Millions of dollars

April 2017 March 2017 YTD 2017 YTD 2016

Gross Issuance 118,725 177,903 546,276 481,167

Gross 447,182
106,789 161,184 478,807
Redemptions

Net Issuance 11,936 26,718 67,469 33,975

Note: Components may not add to the total due to rounding.

Number of Exchange-Traded Funds by Type

April 2017 March 2017 April 2016

Total Domestic Equity 641 633 618

Domestic (Broad-Based) 323 316 302

46
 Domestic (Sector/Industry) 318 317 316

Global/International Equity 521 514 454

Hybrid 20 20 16

Bond 273 273 248

All 1,455 1,439 1,335

Highlights: Assets of all exchange-traded funds rose in April by $37.88 billion, or 1.8
percent, to $2.101 trillion. Over the past 12 months, ETF assets increased $367.28 billion,
or 21.2 percent. Assets in domestic equity ETFs increased $200.64 billion since April
2016, and global equity ETF assets rose $106.31 billion during this period. At the end of
April 2017, assets of bond funds were $321.88 billion and hybrid funds were $3.63
billion.

During April, the value of all ETF shares issued exceeded that of shares
redeemed by $11.94 billion. In April 2016, the value of all ETF shares issued exceeded
that of shares redeemed by $19.47 billion.

47
 Monthly UIT Deposits
May 2017

Washington, DC, June 16, 2017 - Unit INVESTMENT trusts, investment companies
that hold fixed portfolios of selected stocks or bonds, had total deposits of $4.95 billion in
May, according to statistics compiled by ICI. For comparison, deposits were $6.35 billion
in April 2017 and $5.14 billion in May 2016.

Total Deposits by Trust Type

Thousands of dollars
May 2017 Apr 2017 May 2016
Equity 4,863,294 6,231,527 5,022,625
Taxable Debt 43,268 55,452 62,082
Tax-Free Debt 38,730 66,323 48,883
Total 4,945,292 6,353,302 5,143,590

There were 119 new trusts issuing shares in May. Of that total, 110 were equity
trusts, five were taxable bond trusts, and four were tax-free bond trusts.

In terms of maturity, intermediate bond trusts having an average weighted

maturity of 5–16 years attracted the most deposits in May, with $44.79 million.

Year-end 2015 figures: Data on the market value of unit INVESTMENT trusts

48
issued and outstanding as of year-end 2016 indicates a total of 5,381 trusts with a value of
$101.15 billion. According to reports of sponsors, at year-end 2016 there were 2,287 tax-
free bond trusts, with a market value of $12.11 billion; 591 taxable bond trusts, with a
market value of $3.06 billion; and 2,503 equity trusts, with a market value of $85.96
billion.

Closed-End Fund Assets

First Quarter 2017

Washington, DC, May 18, 2017 - The combined assets of the nation’s closed-end funds
were $289.19 billion at the end of March 2016, according to ICI. The Institute’s quarterly
statistical collection also includes the value of shares issued and redeemed by closed-end
funds.

Assets of Closed-End Funds by Type

End of Period, Millions of dollars

2017:1Q 2016:4Q 2015

Equity 118,419 119,326 115,186
Domestic 87,486 88,955 81,757
Global 30,934 30,370 32,429
Bond 170,775 169,936 165,096
Domestic Taxable 57,816 56,892 58,489
Domestic Municipal 90,268 90,169 82,871
Global 22,691 22,874 23,737
Total 289,194 289,261 279,282

Note: Components may not add to the total because of rounding.

Highlights: Total closed-end fund assets decreased $67 million during the first quarter.
Equity fund assets decreased by $907 million to $118.42 billion, and bond fund assets
increased by $839 million to $170.78 billion.
For the quarter, there was $702 million in net issuance to closed-end funds,

49
compared with $943 million in the fourth quarter of 2016.There were 566 closed-end
funds at the end of the first quarter. Bond funds numbered 359, and equity funds totaled
207. There were 568 closed-end funds at year-end 2016.

Value of Shares Issued and Redeemed by All Closed-End Funds

Millions of dollars
Note: Components may not add to the total because of rounding.

2017:1Q 2016:4Q 2015 2014

Gross Issuance 878 1,246 7,859 17,012
Gross Redemptions 117 304 2,958 3,270
Net Issuance 702 943 4,901 14,742

NUMBER OF CLOSED-END FUNDS BY TYPE

2017:1Q 2016:4Q 2015
Equity 207 210 216
Domestic 123 126 141
Global 84 84 85
Bond 359 358 383
Domestic Taxable 125 124 142
Domestic Municipal 194 194 210
Global 40 40 41
Total 566 568 599

50
 CHAPTER-5

FINDINGS, SUGGESTIONS
&
CONCLUSION

51
 FINDINGS

 As per my Knowledge a fund with a better diversification of funds and opting for
changes based upon the market fluctuation. Under the eyes of efficient fund manager
can produce a high return.

 The Biggest advantage with Mutual Funds is that the investor don’t need huge
amount to be invested in all his favorite stocks and bonds. Most Mutual Funds have a
minimum investment of Rs 5000.

 In the analysis of balanced funds HDFC OPEN-ENDED BALANCED FUND

outperformed all the other two. It recorded a NAV of 86.64%.

 In the analysis of equity funds HDFC OPEN-ENDED EQUITY FUND outperformed

all the other two. It recorded a NAV of 121.64%.

 In the analysis balance & equity fund, the HDFC open-ended fund tops the chart, buy
UTI is also not so far away from it.

 The investments with higher risk will usually turn with higher reward in future
course.

 If you are scouting for chart buster with eye popping returns, HDFC is best to invest.

 If you want to settle for long term performer, HDFC could surely be your cup of tea.

52
 SUGGESTIONS

 Since the entire fund’s returns are beating the market returns and the funds are giving
good returns, investing is quite helpful to investors.

 Since most of the investors are working in the private sector it is all the more
necessary to give equity flavor to one’s investment portfolio so that they can have a
comfortable post retirement life.

 If there is a chance of withdrawal of investment, it should be made in debt

instruments.

 It is important to select the fund carefully. The most important factor while selecting a
fund is the suitability. A fund may be best available in the market if it doesn’t match
the requirement, skip the fund.

 The performance of the mutual fund over a long time horizon should be taken into
consideration. Short-term performances are like a flash in the pan and should not be
the guiding factor for any investment decision.

 Diversification is the best strategy to mitigate the downside risk in an investment

portfolio. Investments should be made in various funds so that one is exposed to all
market capitalizations.

 Investors should invest in equities for a long term, which generates higher returns and
should invest in debt funds for short term.

 Mutual funds are prior to market risk so, please read document carefully before
investing.

53
 CONCLUSIONS
 It can be said that, falling interest rates and recent developments in the investment
climate in the country, have led to investment avenues dwindling drastically. But
Mutual Funds are any day a safe bet for investors of different groups, motives and
other preferences. Since Asset Management companies offer a range of Funds
respective Investment philosophies, an investor can benefit only by investing in
appropriate fund, which shall meet his requirements.

 Manager should try to reduce the risk by investing in efficient or he should be able to
differentiate between the efficient and inefficient securities.

 The mutual fund company should concentrate on cash rich companies like the Trusts,
cash rich private companies, etc to generate, more funds for the investment.

54
BIBLIOGRAPHY

55
 BIBLIOGRAPHY
Books referred:
1. MUTUAL FUNDS IN INDIA: S .KRISHNA
MURTHY, Second Edition, chandbose,
Calcutta.
2. INVESTMENT MANAGEMENT : V.A.
AVADHANI, Fourth Edition, 2000,Himalaya
publications, Hyderabad

FACT SHEETS

SBI, UTI, HDFC MUTUAL FUND

WES SITES:
1. www.mutualfundsindia.com
2. www.bseindia.com
3. www.nseindia.com
4. www.amfiindia.com
5. www.anandrathi.com
6. www.rathi.com

JOURNALS:
1. Economic Times
2. India Today

56