AXIS BANK LTD

Project Report On

A COMPARITIVE ANALYSIS ON PUBLIC

AND PRIVATE SECTOR MUTUAL FUNDS

Submitted B

PRITI

Section-B (MBA 06)

Under the Supervision of

MRS. SHIKHA BHARDWAJ (Faculty)

In the partial fulfillment of the requirement for the award of

Degree of Master of Business Administration Of

GGSIP University ,Delhi Batch 2009-11

Army Institute of Management & Technology

Greater Noida-201306

1
 CERTIFICATE OF ORIGINALITY

I --------------------------------------------- Roll No ----------- Class of 2009, a

full time bonafide student of first year of Master of Business Administration

(MBA)Programme of Army Institute of Management & Technology, Greater

Noida. I hereby certify that this project work carried out by me at

and the report submitted in partial fulfillment of the requirements of the

programme is an original work of mine under the guidance of the industry

mentor--------------------------------------------------------------------- and faculty

mentor--------------------------------------- ---------------------, and is not based

or reproduced from any existing work of any other person or on any earlier

work undertaken at any other time or for any other purpose, and has not been

submitted anywhere else at any time

(Student's Signature)
Date: , 2010

2
DECLARATION

I,PRITI of MBA IIIrd sem, Army Institute of Management & Technology, hereby
declare that the summer training project titled “A Comparative Analysis of Public
Sector and Private Sector Mutual Funds” is an original work. A copy of the same has
been provided to the Axis Bank. On 31/07/10

(Signature of External) (Signature of Internal)

3
 ACKNOWLEDGEMENT

I am highly obliged to have an opportunity to thank all those who

have helped me during the course of my summer training project.
First of all I would like to thank, AXIS BANK LTD., for providing
me an opportunity to work in their organization as a trainee.
I express my sincere thanks and gratitude towards Ms. ANJALI
BHATNAGAR, ASST. MANAGER,for her kind guidance and
cooperation she extended to me during my project period. She provided me
with information as and when I required, therefore making my project a
successful one. Not to forget the helpfulness and cooperation of all the
executives of AXIS BANK LTD. would like to express my healthy
gratitude towards them.
I am thankful to Prof.SHIKHA BHARDWAJ , AIMT, Greater Noida for
her continuous motivation, encouragement and firm guidance for the
successful completion of this project report. This project has been a greater
learning outcome for me and without her help it would not have been
possible for me to complete this project.

StudentName........................................................
Signature.....................................Date............................

4
EXECUTIVE SUMMARY

Financial system facilitates the transformation of savings of individuals, government

and businesses into investments and consumption .The process of economic
development is accompanied by a corresponding and parallel growth of financial
institution. A significant outcome of this economic and financial development is the
emergence of mutual funds,leasing,depository,factoring services, merchant banking
etc.

Thus mutual funds act as a gateway to enter into big companies hitherto inaccessible to
an ordinary investor with his small investments. 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. The income earned
through these investments and the capital appreciation realized are shared by its unit
holders in proportion to the number of units owned by them.

There are many types of mutual funds, including aggressive growth fund, asset
allocation fund, balanced fund, blend fund, bond fund, capital appreciation fund, clone
fund, closed fund, crossover fund, equity fund, fund of funds, global fund, growth fund,
growth and income fund, hedge fund, income fund, index fund, international fund,
money market fund, municipal bond fund, prime rate fund, regional fund, sector fund,
specialty fund, stock fund and tax-free bond fund. Many types of mutual funds have
lead to increasing importance of selecting right scheme that fulfill the desired objectives
of investors.

This study is a relative study of debt funds of private and public sector. Debt funds are a
mutual fund aims to achieve regular and steady income to investors. These schemes
generally invest in fixed income securities such as bonds and corporate debentures.
Capital appreciation in such schemes may be limited.

The present study is attempted to make an in-depth analysis of performance of Debt

schemes. Further the study seeks to analyze the portfolio investments of public and
private sectors. And various other parameters relating to mutual funds performance are
also discussed and analyzed.

5
Table of Content

S.No Topic Page No.

1. AXIS BANK PROFILE
2. CHAPTER -1
INTRODUCTION
2.1 IMPORTANCE OF STUDY
2.2 SCOPE OF STUDY
3. CHAPTER -2
MUTUAL FUND INDUSTRY IN INDIA
4. CHAPTER -3
RESEARCH METHODOLOGY
4.1 OBJECTIVE OF STUDY
4.2 THE PRESENT STUDY
4.3 DATA SOURCE
4.4 DATA ALALYSIS
4.5 LIMITATIONS OF STUDY
5. CHAPTER -4
MUTUAL FUND PERFORMANCE
6. CHAPTER -5
FINDINGS AND CONCLUSIONS
7. BIBLOGRAPHY

6
COMPANY DESCRIPTION :

Axis Bank was the first new generation private sector bank to be established in
India under the overall reform programme initiated by the Government of India in
1991, under which nine new banking licenses were granted.
The Bank was promoted by Unit Trust of India, the largest mutual fund in India,
holding 87% of the equity. Life Insurance Corporation of India (LIC), General
Insurance Corporation Ltd and its four subsidiaries who were the co-promoters
held the balance 13%. The Bank started its operations in 1994.
Axis Bank’s first capital raising post inception was in 1998 through a public
offering of primary shares and in subsequent years through equity allotment to a
few other investors like CDC. Citicorp Banking Corporation, Bahrain, Karur Vysya
Bank and Chrys Capital leading to a dilution in UTI’s shareholding in the Bank.
Further dilution of Promotors’ shareholding happened during Q4 ended of 2004,
when the Bank raised US$ 239.30 Million of Capital through a GDR issue.
The Bank today is capitalized to the extent of Rs. 358.56 crores with the public
holding (other than promoters) at 57.60%.
The Bank's Registered Office is at Ahmedabad and its Central Office is located at
Mumbai. Presently, the Bank has a very wide network of more than 701 branch
offices and Extension Counters. The Bank has a network of over 2854 ATMs
providing 24 hrs a day banking convenience to its customers. This is one of the largest
ATM networks in the country. The Bank has strengths in both retail and corporate
banking and is committed to adopting the best industry practices internationally in order
to achieve excellence.
Axis Bank is one of the fastest growing banks in the country and has an extremely
competitive and profitable banking franchise evidenced by:
Comprehensive portfolio of banking services including Corporate Credit, Retail
Banking, Business Banking, Capital Markets, Treasury and International Banking.

7
 Axis Bank

Type Public (BSE: 532215

Industry Banking,

Financial services

Founded 1994

Headquarters Mumbai, India

Key people Adarsh Kishore

(Chairman)

Shikha Sharma

(MD & CEO)

Products Investment Banking

Commercial Banking

Retail Banking

Private Banking

Asset Management

Mortgages

Credit Cards

Revenue ▲Rs 13,745.04 crore (US$ 2.93 billion)(2009)

Net income ▲Rs. 1,812.93 crore (US$ 386.15 million)(2009)

Employees 13,389 (2010)[1]

8
 CHAPTE
R-1

INTRODUCTION
This chapter presents the introduction of mutual funds, Debt schemes of mutual funds,
organization of mutual funds, Types of mutual funds schemes, and need of mutual
funds.

INTRODUCTION

Different investments avenues are available to investors. Mutual funds also offer good
investments opportunities to the investors. Like all investments, they also carry certain
risk. The investors should compare the risks and expected yields after adjustments of
tax on various instruments while taking investments decisions. The investors may seek
advice from experts and consultants including agents and distributors of mutual funds
schemes while making investments decisions.

An efficient articulate and developed financial system is must for the rapid economic
growth and development of a country.

Financial system facilitates the transformation of savings of individuals, government

and businesses into investments and consumption. The process of economic
development is accompanied by a corresponding and parallel growth of financial
institutions. Financial institutions are business organization that act as immobilizers
and depositories of savings, and as purveyors of credit of finance. They also provide
various financial services to the country. Financial system helps in improving the
standard of living and increase the social welfare of the community by mobilizing the
savings and investing them gainfully.

It is financial system which establishes a link between savers and investors and help
converting investments ideas into reality. This link is provided by a mechanism
through which savings of different kinds of savers , small, moderate, and large savers
are pooled together and are put at the disposal of those who are able and willing to
invest. Such a mechanism includes wide varieties of institutions, which meet the
safety, liquidity, and profitability requirements of savers. These institutions grouped as
money market and capital market. Money market institutions, comprising of

9
development banks and financial institutions grants long term loans and invest in
securities of the industrial and trading concerns. The financial institutions help
reducing the risk by diversification. These institutions also engage in the services of
expert investment analysis, professional knowledge and expertise for the selection and
supervision of their investment portfolio. Thus, a financial institution can assure the
investors triple benefit of:

1. Low risk
2. Steady returns
3. Capital appreciation

A significant outcome of this economic and financial development is the emergence of

mutual funds, leasing, depository, factoring services, merchant banking etc.

Thus mutual funds act as a gateway to enter into big companies hitherto inaccessible to
an ordinary investor with his small investments.

WHAT IS A MUTUAL FUND?

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

Investments in securities are spread across a wide cross-section of industries and

sectors and thus the risk is reduced. Diversification reduces the risk because all sectors
may not move in same direction in the same proportion at the same time. Mutual fund
issues units to the investors in accordance with quantum of money invested by them.
Investors of mutual funds are known as unit holders.

10
The investors in proportion to their investments share the profits and losses. The
mutual funds normally come out with a number of schemes with different investments
objectives that are launched from time to time. A mutual fund is required to be
registered with securities and exchange board of India (SEBI), which regulates
securities market before it can collect funds from the public.

Mutual fund means a non-depository or non-banking financial intermediary, which

acts as “important vehicle for bringing wealth holders and deficit units together
indirectly”. Mutual fund is a type of investment. company which is concerned with
garnering savings of individuals and institutions and channelisation of these savings in
corporate securities in such a way as to ensure to its investors steady returns and
capital appreciation with low exposure to the risk. Thus, mutual funds facilitate the
investors to pool their funds to invest in a diversified portfolio of securities. These
funds are invested in a wide variety of securities in such a way as to minimize risk
while ensuring steady returns. The mutual funds pool the resources of the savers by
creating claims against themselves in the form of units sold to investors.

Basically, there are two types of investments companies VIZ. open end and close end.
Open end investment company continuously offer its units for sale and always stands
ready to buy securities (units)at any time. This renders the capitalization of the
company to undergo a constant changes the investors purchase and sale their units
directly with the fund. Such purchase and sale takes place invariably at the net asset
value at the time the unit holders request for redemption. Close end-company has a
fixed no of shares that can be owned by the investing public. It is just like another
incorporated association with a fixed amount of capital.

A mutual fund is a trust that pools the savings of a no 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 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 men as it offer 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:

11
 Investors
Passed
Pool their money
back
with
to

Returns Fund Manager

Generates Securities Invest in

An open-ended fund operated by an investment company which raises money from

shareholders and invests in a group of assets, in accordance with a stated set of
objectives. Mutual fund raise money by selling shares of the fund to the public, much
like any other type of company can sell stock in itself to the public. Mutual funds then
take the money they receive from the sale of their shares (along with any money made
from previous investments) and use it to purchase various investment vehicle, such as
stock, bonds and money market instruments. In return for the money they give to the
fund when purchasing shares, shareholders receive an equity position in the fund and,in
effect, in each of its underlying securities. For most mutual funds, shareholders are free
to sell their shares at any time, although the price of a share in a mutual fund will
fluctuate daily, depending upon the performance of the securities held by the fund.

12
Benefits of the mutual fund include diversification and professional money
management. Mutual funds offer choice, liquidity, and convenience, but charge fees
and often require a minimum investment. A closed-end fund is often incorrectly
referred to as a mutual fund, but is actually an investment trust. There are many types
of mutual funds, including aggressive growth fund, asset allocation fund, balanced
fund, blend fund, bond fund, capital appreciation fund, clone fund, closed fund,
crossover fund, equity fund, fund of funds, global fund, growth fund, growth and
income fund, hedge fund, index fund, international fund, money market fund,
municipal bond fund, prime rate fund, regional fund, sector fund, specialty fund, stock
fund, and tax free bond fund.

WHAT ARE DEBT SCHEMES IN MUTUAL FUNDS?

There are so many types of mutual funds. One of them is a debt schemes or income
schemes or income fund. Debt funds are mutual funds aims to achieve regular and
steady income to investors. These schemes generally invest in fixed income securities
such as bonds and corporate debentures. Capital appreciation in such schemes may be
limited.

Features:

(1) Income schemes provide return in the form of dividends.

(2) The return may be cumulative.
(3) The return may be non-cumulative on a monthly, quarterly, half yearly or yearly
basis.
(4) Mutual funds carry market risk, so no guaranteed rate of return.
(5) In addition to the regular return, there is some marginal growth also as reflected
in the bonus declared from time to time.
(6) In the view of the regular, consistence and steady flow of returns to the
investors, the corpus is invested predominantly in fixed income securities, like
debentures, bonds, govt. securities etc. of course, funds are invested in shares but
relatively at lower percentage.

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Prior to 1993 all the mutual funds floated monthly or yearly income schemes with
assured returns. This was subsequently prohibited in 1993-94 but allowed in 1995
again.

TYPES OF MUTUAL FUND SCHEMES

Wide varieties of mutual fund schemes exist to cater to the needs such as financial
position, risk tolerance and return expectations etc. The table below gives an overview
into the existing types of schemes in the industry.

TYPES OF MUTUAL FUND SCHEMES

BY STRUCTURE

• Open – Ended schemes

• Close – Ended schemes
• Interval schemes

BY INVESTMENT OBJECTIVE

• Growth schemes
• Income schemes
• Balanced schemes
• Money market schemes

OTHER SCHEMES

• Tax Saving Schemes

• Special Schemes
• Index Schemes

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• Sector Specific Schemes

Schemes according to structure:

A mutual fund scheme can be classified into open-ended scheme or close-ended

scheme depending on its maturity period.

• Open – ended fund/ scheme

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

• Close – 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 the time of the initial public 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 periodic
repurchase at NAV related prices.

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• Interval schemes

These combine the features of open-ended and close-ended schemes. They may be
traded on the stock exchange or may be open for sale or redemption during
predetermined intervals at NAV related prices.

Schemes according to investment objectives:

A scheme can also be classified as growth scheme, income scheme, or balanced

scheme considering its investment objective. Such schemes may be open-ended or
close-ended schemes as described earlier. Such schemes may be classified mainly as
follows:

• Growth / Equity oriented scheme

The aim of growth fund 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 choose
an option depending on their preferences.

• Income / debt oriented scheme

The aim of income fund is to provide regular and steady income to the 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.

• Balanced fund

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 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 document. These are appropriate for investors looking for moderate
growth. They generally invest 40-60 % in equity and debt instruments. These funds are
also affected because of fluctuations in share prices in the stock markets. However
NAVs of such funds are likely to be less volatile compared to pure equity funds.

• 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 deposits, commercial
papers and inter bank call money, government securities, etc.

Other schemes:

• Tax saving schemes

These schemes offer tax rebates to the investors under specific provisions of the
income tax act, 1961 as the government offers tax incentives for investments in
specified avenues . e.g Equity linked saving schemes (ELSS). Pension schemes
launched by the mutual funds also offer tax benefits.

• Gilt fund

These funds invest exclusively in government securities. Government securities have

no default risk. NAV of these schemes also fluctuate due to change in interest rates
and other economic factors as are the case with income or debt oriented schemes.

• Index funds

17
Index fund replicate 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 weightage comprising of an index. NAVs of such schemes would rise and fall in
accordance with the rise or fall in the index, though not exactly by the same percentage
due to some factors known as “tracking error” in technical terms.

• 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 document. E.g. pharmaceuticals, software, fast
moving consumer goods (FMCG), Petroleum stocks etc. the return in these funds are
dependent on the performance of the respective sectors/industries.

• Load or no-load fund

A load fund is one that charges a percentage of NAV for entry or exit. That is, each
time one buys or sells units in the fund, a charge will be payable. This charge is used
by the mutual fund for marketing and distribution expenses. A no-load fund is one that
does not charge for entry or exit. It means the investors can enter the fund /scheme at
NAV and no additional charges are payable on purchase or sale of units.

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 IMPORTANCE OF THE STUDY:
In view of increasing number of schemes and growing competition in mutual fund
industry, investors are finding it difficult to make a right selection of schemes. By the
emergence of both private and public sectors even a single wrong decision may put the
investor and his investments in trouble. The proper performance evaluation with expert
services removes such confusion and helps the investor in selecting right fund under
right sector.

It is with this fact in mind that the present study “debt schemes in mutual funds” (A
comparative study b/w public and private sectors) is being undertaken.

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SCOPE OF THE STUDY:

The secondary data on the size and growth of debt schemes in mutual fund industry in
India pertains to five years from January 2002 to December 2006. The scope of the
study is kept limited to the period of five years. The data for the selected schemes
pertaining to a five year period .

The study covers the ten selected schemes of top 5 schemes of both public and private
sector mutual fund houses each listed on the Indian stock exchange.

To compare debt schemes of both sectors on the basis of Benchmark index to evaluate
over-performance or under-performance of selected mutual funds. For this comparison
BSE sensex is taken as Benchmark index.

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CHAPTER – 2

MUTUAL FUND INDUSTRY IN INDIA

In this chapter, an attempt has been made to give the details regarding the history of
the Indian mutual fund industry, overview of Indian mutual fund industry, fund
mobilization, and other mutual fund information.

HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY

The mutual fund industry in India started in 1963 with the formation of Unit Trust of
India, at the initiative of the government of India and Reserve Bank. The history of
mutual funds in India can be broadly divided into four distinct phases.

First Phase – 1964-87

Unit Trust of India (UTI) was established on 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 has Rs.6,700 crores of assets under
management.

Second Phase – 1987-1993 (Entry of Public Sector Funds)

1987 marked the entry of non-UTI, public sector mutual funds set up by the 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

21
established in june 1987 followed by canbank 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.

Third Phase – 1993-2003 (Entry of Private Sector Funds)

With the entry of private sector funds in 1993, a new era started in the Indian mutual
fund industry, giving the Indian investor a wider choice of fund families. Also,1993
was the year in which the first mutual fund regulation 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.

Fourth Phase – Since February 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

22
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 returns and certain
other schemes. The specified undertaking of Unit Trust of India, functioning under an
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 ltd. 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. 76000 crores
of assets under management and with the setting up a UTI Mutual fund, confirming to
the SEBI Mutual fund regulations, and with recent mergers taking place among
different private sector firms, the mutual fund industry has entered its current phase of
consolidation and growth. As at the end of September 2004, there were 29 funds,
which manage assets of Rs. 153108 Crores under 421 Schemes. The following graph,
the figure 2.1 indicates the growth of assets over the years.

23
MUTUAL FUND INDUSTRY IN INDIA – AN OVERVIEW

In four decades of its existence in India, the mutual fund industry has gone through
several structural changes.

From the UTI’s monopoly, until 1987, when the industry was opened first two other
public sector enterprises, and then to private sector playes in 1993, it has come a long
way. The entry of private players has galvonised the sector as increased competition
has forced industry players to focus on product innovation, market penetration,
identifying new channels of distribution, and last but not the least, improving investors
service. These measures have helped the industry grow significantly from having
assets worth Rs. 47000 Crores under management in March 1993 to Rs. 150198
Crores by December 2004. However, and the industry is going to face significant
challenges in the future as the competitive pressure increases. Debt funds too have
been benefited by the soft bias in the interest rates. The volatility in the bond prices
has helped debt oriented funds delivered handsome returns. However, this is not to
take credit away from the fund managers investment management skills which played
a major role in the funds performance. However, with the industry moving up the
learning curve, significant changes in the investment environment such as increased
competition, ongoing reforms which allow mutual funds to invest abroad as well as in
derivatives instruments and increased integration of global financial markets pose
significant challenges to the industry in the country. Also, the funds need to be
investor friendly and would have to significantly improve their portfolio disclosure
practices. The key to success would be size, geographic reach, product innovation,
better investment management skills, and last but not the least, customer services.

The period from 2000 to 2005 was eventful year for the mutual fund industry. The
Indian economy, just like its global competitors slowed down significantly. There was
low credit off taken by the industry from the banking system and this led to the funds
begin part in the government securities. This coupled with the interest rate cut by the
RBI leas to an under precedent dream run in G-Sec prices. The debt funds flourished
and the investors also flocked to this funds.

MUTUAL FUND SETUP

A mutual fund is set up in the form trust, which has sponsor, trustees, asset
Management Company (AMC) and custodian. The trust is established by a sponsor or

24
more than one sponsor who is like promoter of a company the trustees of the mutual
fund hols its property for the benefit of the unit holders. Asset management Company
(AMC) approved by SEBI manages the funds by making investments in various types
of securities. Custodian, who is registered with SEBI, holds the securities of various
schemes of the fund in its custody. The trustees are wasted with the general power of
superintendence and direction over AMC. They monitor the performance and
compliance of SEBI regulations by the mutual funds.

SEBI Regulations require that at least two thirds of the directors of trustee company or
board of trustees must be independent i.e. they should not be associated with the
sponsors. Also, 50% of the directors of AMC must be independent. All mutual funds
are required to be registered with SEBI before they launch any scheme.

25
Chapter 3

RESEARCH METHODOLOGY

In this chapter, an attempt has been made to give the details regarding the research
materials and methods used to achieve the research objective besides research
objective, it consist need of the study, scope of the study, database and data collection
methods. Also, the tools of analysis and limitations of the study have been described
herein.

OBJECTIVES OF STUDY:

The objectives of the study are spelled out as under:

• To evaluate the performance of debt schemes in mutual funds in public and

private sector in India.

• To compare private and public sectors on the basis of investment pattern or

investment portfolio.

• To compare debt schemes of both sectors on the basis of Benchmark index to

evaluate over-performance or under-performance of selected mutual funds.

26
THE PRESENT STUDY
In the preceding chapter, we have seen that the mutual funds falling both in public and
private sectors have displayed significant growth from 2000. however, this growth has
posed the difficulty to investors in making the selection of suitable schemes as
presently there are more than 403 Schemes. The issue related to the choice among the
public and private sector debt funds, have become highly important because even a
single wrong decision may put the investors in financial crisis, sometimes leading to
their bankruptcy. A proper performance evaluation measure will remove such
confusion and help the small investors in selecting various mutual funds schemes for
investments. Moreover, with growing competition in the market, the fund managers
also need to satisfy themselves that management fees and research expenses are
justified dripping in view the returns generated. In this context, close monitoring and
evaluation mutual fund is very important for the investors and fund managers both. It
is against this backgroung that the present study “Performance of Schemes – a
comparative study of private and public sector mutual funds” has been undertaken.

27
DATA SOURCE:

Data is collected from secondary source related to various schemes will be taken from
various investment journals, capital market reports, research reports, related books and
internet whereas analysis is done by own.

The collected data should be analysed with suitable stastitical technique.

Table 3.1 Schemes under various selected Assets Management Companies (Dec.
2005)

Asset Management Companies No. of Debt Schemes

Public Sector
SBI 43
UTI 57
LIC 17
BOB 12
CanBank 19
Private Sector
Prudential ICICI 70
Templeton 34
HDFC 53
Reliance 101
Birla 47

Investment pattern has been analysed on selected individual schemes basis. Debt
schemes are selected on the top performance (last 3 Years) basis from selected mutual
funds from both private and public sector. Mutual funds houses are selected on the
basis of the resource mobilization or Assets under Management (AUM) of the month
Dec. 2004.

28
Table 3.2 Assets under Management (AUM) has at the end of Dec. 2005

(Rs. In Crores)

Mutual Fund Names AUM

1. ABN Amro Mutual Funds 2769
2. JM Financial Mutual Fund 2596
3. Escorts Mutual Fund 164
4. Birla Sun Life Mutual Fund 15019
5. BOB Mutual Fund 191
6. Benchmark Mutual Fund 982
7. Chola Mutual Fund 2007
8. Duetsche Mutual Fund 2535
9. DSP Merill Lynch Mutual Fund 10795
10. Fidelity Fund Mutual Fund 3663
11. Franklin Templeton Mutual Fund 17827
12. CanBank mutual Fund 2223
13. HDFC Mutual Fund 21550
14. HSBC Mutual Fund 9221
15. ING Vysya Mutual Fund 1961
16. Credit Capital Mutual Fund 232
17 Kotak Mahindra Mutual Fund 9949
18 Quantum Mutual Fund 11
19. Morgan Stanlay mutual Fund 2892
20. Principal Mutual Fund 6489
21. Prudential Mutual Fund 23502
22. Reliance Mutual Fund 24670
23. Sahara Mutual Funds 282
24. SBI Mutual Funds 13186
25. Standard chartered Mutual Fund 9411
26. Sundaram Mutual Fund 3278
27. tata Mutual Fund 9717
28. JBS Mutual Fund 5229
29. UTI Mutual Fund 29519
Total 231862

29
To carryout return and risk analysis and evaluate performance of selected schemes
according to Sharpe’s, Treynor’s and jenson’s model.

Tabel 3.3 Following are the list of selected schemes of selected Mutual funds.

Sectors Mutual Fund Houses Schemes

PUBLIC UTI (Institutions) UTI – BOND ADVANTAGE G

UTI – BOND FUND G

UTI SMALL INVESTORS

UTI GSEC G

UTI LIQUID CASH PLAN INST G

UTI LIQUID CASH PLAN

LIC (Institution) LIC BOND G

LIC GSEC G

LIC LIQUID G

LIC CHILD FUND

LIC MF SHORT TERM PLAN G

SBI (Bank Sponsered) MAGNUM INCOME G

MAGNUMM INSTA G

MAGNUM INSTA INCOME FUND SAVING

G

MAGNUM INSTA CASH STP

MAGNUM GILT STP G

CANBANK (bank CANCIGO
Sponsered)
CANLIQUID G

CANINCOME

CANLIQUID INSTA G

30
 BOB (Bank BOB INCOME G
sponsored)
BOB LIQUID G

BOB GILT G

BOB INCOME STP G

PRIVATE PRUDENTIAL ICICI PRU ICICI INC G

PRU ICICI G

PRU ICICI GILT IP G

PRU ICICI GILT TG

PRU ICICI LIIQUID INST G

FRANKLIN TEMPLETON CHILDREN ASSETS
TEMPLETON
TEMPLETON INC BUILDER ACC G

TEMPLETON INC G

TEMPLETON LIQUID G

TEMPLETON TMA G

TEMPLETON GSEC G
HDFC HDFC HIGH INTREST G

HDFC CASH MANAGEMENT SAVINGS

PLAN G

HDFC SOVEREIGN GILT PT G

HDFC SOVEREIGN GILT IP G

HDFC SOVEREIGN GILT SP G

HDFC LIQUID PREMIUM PLUS G

BIRLA BIRLA INCOME PLUS B

BIRLA GILT RP G

BIRLA GILT PF PLUS G

BIRLA GILT LIQUID G

BIRLA CASH PLUS INST PREMIUM G

BIRLA SWEEP PLAN G

31
 RELIANCE RELIANCE INC GR

RELIANCE LIQUID TP BONUS

RELIANCE LIQ TP G

RELIANCE LIQ SUPER CASH G

RELIANCE LIQ CASH G

The secondary data regarding NAV and market prices of selected schemes have been
collected for each month of entire study period.

Benchmark Comparison

Benchmark index – Crisil composite Debt fund index is used to evaluate and for
comparison of over-performance or under-performance by selected Debt-schemes.

CRISIL COMPOSITE DEBT FUND INDEX

• The composite Bond Fund index consist of tracking the returns on the
constituents like the Call index, the CP index, the AAA index, AA index and the Gilt
fund index to arrive at the Index Figures
• The weighted average methodology is used to arrive at the returns for the
composite bond funds.
• The index history is calculated from the base date of 31st March, 2002.

An index of this kind, generally serves as an indicator for all the market participants in
the category, to benchmark their performance against the index, find out the attributes
for the variation in their performance vis-à-vis the index and reshuffle their portfolio
keeping in mind the risk/reward tradeoff.

Since the resulting index is a derived index rather than a primary index, it also serves
as a benchmark for non-diversified market participants to evaluate their performance

32
against a diversified portfolio containing a mix of all the instruments in the universe of
non-equity instruments. Finally, the index is a useful tool to track volatility, charting
correlation and developing hedging instruments.

These indices have been arrived in consultation with AMFI(association of mutual

funds in India) for benchmarking the performance of individual funds in the Indian
mutual funds. Marketplace against an index that is representative of the universe of
that fund.

Index Index Day ago A Week A Month A Year

value as 31 ago 25 ago 30 Ago
on 1Aug, July,2006 July, June,2006 1Aug,2005
2006 2006
CRISIL 1267.47 1267.43 1266.43 1261.73 1232.24
composite
bond fund
index f

DATA ANALYSIS
The analysis has been carried out on one dimension: the gain to the investor in terms
of average monthly returns on their investments in debt schemes and risk associated
with these returns.

LIMITATIONS OF THE STUDY

As the study is totally based on the secondary data, so all the limitation exists, which
arises due to use of secondary data. Other side of limitations exists as less time was
available, constraint of money.

33
CHAPTER-4

MUTUAL FUND PERFORMANCE

In this chapter, an attempt has been made to give the details regarding the need to
evaluate funds performance, statistical tools, analysis and tables and total returns.

WHY MEASURE FUND PERFORMANCE

The Investors Perspective

The investor would naturally be interested in tracking the value of his investments,
whether he invests directly in the market or indirectly through mutual funds.. he would
have to make intelligent decisions on whether he gets an acceptable return on his
investments in the funds selected by him, or if he needs to switch to another fund. He
therefore needs to understand the basic knowledge of the different measures of
evaluating the performance of a fund. Only than would he be in a position to judge
correctly whether his fund is performing well or not, and make the right decision.

The Advisor’s Perspective

If u were an intermediary recommending a mutual fund to a potential investor, he

would except you to give him proper advise on which mutual funds have a good
performance track record. If u want to be an effective investment advisor, then you
too have to know hoe to measure and evaluate the performance of the different funds
that are available to the investor. The need to compare different funds performance
requires the advisor to have the knowledge of the correct and appropriate measure of
evaluating the fund performance.

34
Different Performance Measures

Remember that there are many measures of fund performance. you must find the most
suitable measure, depending on the type of fund you are looking at, the stated
investment objective of the fund and even depending on the current financial market
condition. We discuss below each type of the most common measures, along with
comments on its suitability for different types of funds, for different investments
objectives and market conditions.

THE MOST COMMON MEASURES

(1) Change in NAV

Purpose: if an investor wants to compute the return on investment between two

dates, he can simply use the Per Unit Net Asset Value at the beginning and the end
periods, and calculate the change in the value of the NAV between the two dates in
absolute and percentage terms.

Formula: for NAV change in absolute terms:

(NAV at the end of the period)-(NAV at the beginning of the period)

For NAV change in percentage terms:

(absolute change in NAV/NAV at the beginning)*100

If period is less /more than one year: for annualized NAV change:

(((absolute change in NAV/ NAV at the beginning)/months covered)*12)*100

35
Example: Thus, if a fund’s NAV was Rs 20 at the beginning of the year and Rs. 22
at the end of the year, the absolute change was Rs 2 (22-20) and percentage change
was + 10%(22-20/20*100). Now, let us assume that an investor purchases a unit in an
open-end fund at Rs 20, and its NAV after 16 months is Rs 22, the annualized NAV
change is :7.5%; (((22-20)/20)/16*12)*100

Suitability: NAV change is most commonly used by investors to evaluate fund

performance, and so is also most commonly published by the mutual fund managers.
The advantage of this measure is that it is easily understood and applies to virtually
and type of fund.

Interpretation: whether the return in terms of NAV growth is sufficient or nor

should be interpreted in light of the investment objective of the fund, current market
conditions and alternative investment returns. Thus, a long term growth fund or
infrastructure fund will give low returns in the initial years. All equity funds may give
lower returns when the markets are in a bearish phase. Doubt funds may give lower
returns when interest rates are rising.

Limitations: However, this measure does not always give the correct picture, in
cases where the fund has distributed ti investors a significant amount of dividend in the
interim period. If, in the above example year-end NAV was Rs. 22 after declaration
and payment of a dividend of Rs 1, the NAV change of 10% gives an incomplete
picture. Therefore, it is suitable for evaluating growth funds aand accumulation plans
of debts and equity funds, but should be avoided for income funds and funds with
withdrawal plans. For this reason, this measure neither is nor considered as
comprehensive as the measure described below.

36
(2) TOTAL RETURN
Purpose: This measure corrects the shortcoming of the NAV change measure, by takin
account of the dividends distributed by the fund between the two NAV dates, and
adding them to the NAV change to arrive at the total return.

Formula for total returns:

(( distributions +change in NAV)/NAV at the beginning of the period )*100

Example: lets us assume that an investor purchased 1 unit of an open –end equity
fund at Rs 20. the fund had an interim dividend distribution of Rs. 4 per unit. Now let
us assume that the NAV of the fund at year- end was Rs. 22. Thus, total returns at the
end of the year for the investor was 30%((4+(22-20))/20)*100.

Suitability: Total return is a measure suitable for all types of funds. Performance of
different types of funds can be compared on the basis of total return. Thus, during a
given period, you can find out whether a debt fund gave better returns than an equity
fund. It is also more accurate than simple NAV change, because it takes into accounts
distributions during the period. While using Total return, performance must be
interpreted in the light of market conditions and investment objective of the fund.

37
EVALUATING FUNDS PERFORMANCE

Importance of Benchmarking in evaluating fund performance

The measures described in section one are absolute, meaning that none of the measures
should be used to evaluate the fund performance in isolation. A funds performance can
only be judged in relation to investors expectations. However, it is important for the
investors to define his expectations in relation to certain. “guideposts” on what is
possible to achieve, or moderate his expectations with realistic investment alternative
available to him in the financial markets. These guidelines or indicators of
performance can be thought of as benchmark against which a fund;s performance
ought to be judged. For, example an invvestor’s expectations of returns from an equity
fund should be judged against how the overall stock market performed, in other words
by how much the index itself moved up or down and whether the fund gave a return
that was better or worse than the index movements. In this example, we can use a
market index like S&P CNX Nifty or BSE SENSEX as benchmarks to evaluate our
investor’s mutual fund performance.

While an advisor needs to look at the absolute measure of performance, he needs to

select the right benchmark to evaluate a fund’s performance, so that he can compare
the measured performance figures against the selected benchmark. How do we selesct
the right benchmark to evaluate a giben fund’s performance?

Historically, in India, investors only option were UTI schemes or blank deposits. UTI
itself tended to “BENCHMERK” its return against what interest rates were available
on blank deposits of 3/5 year maturity. Thus, for a long period, US64 scheme
dividends were compared to bank deposit interest rates and investors would be happy
if the dividend yield on US64 units were greater than comparable deposit interest rates
and investors would be happy if the dividend yield on US64 units was greater than
comparable deposit interest rate. Thus, investors in Indian mutual funds tend to
routinely compare bank interest rates with returns on mutual fund schemes. However,
with increasing investment option in the market, bank interest rates should not be used
to judge a mutual fund’s performance in all cases. Let us therefore take a look at how
to choose the correct benchmarks of mutual fund performance.

38
BASIS OF CHOOSING AN APPROPRIATE PERFORMANCE
BENCHMARK

The appropriate benchmark for any fund has to be selected by reference to:

1. The asset class it invest in. Thus, an equity fund has to be judged by an
appropriate benchmark from the equity markets, a debt fund performance against a
debt market benchmark and so on; and
2. The fund’s stated investment objective. For example, if a fund invests in long
term growth stocks, its performance ought to be evaluated against a benchmark that
captures growth stocks performance.

There are in fact three types of benchmarks that can be used to evaluate a fund’s
performance, relative to the market as a whole, relative to other mutual funds, and
relative to other comparable financial products or investment option open to the
investor.

DEBT FUNDS

Historically investors have used bank interest rate as benchmarks to judge the
performance of debt funds. However a debt fund performance ought to be judge
against a debt market index, just as an equity fund’s benchmark would be judge
against the equity market index. Further for debt funds, the kind of debt that comprises
the portfolio will also decide the index to be used. If the bond fund or debt fund in
question is is a broad based one, then a broad based debt index has to be used for this
purpose. If the debt fund is narrower government security fund, for example, then,
only the government security sub-segment of the broad based index has to be used as
the appropriate benchmark. Performance of closed-end debt funds with a clear period
of maturity, however, may be compared with bank fixed deposits of comparable
maturity, as is commonly done by investors in India.

In practice, no appropriate debt index is available in India, to be used for

benchmarking debt funds. Some analysts often used I-SEC’s I-BEX index, and its
government securities sub-segment can be used as benchmark to judge govt. sec.

39
funds. In any case, any benchmark for a debt fund must have the same portfolio
composition and the same maturity profile as the fund itself, to be comparable.

While every fund is exposed to market risks, good funds should at least match major
market indices, and be able to sustain bearish market phases better than other funds.
Good fund managers operate with a long term perspective, do not sacrifice investors
value by excessive trading which generates a high level of transaction cost, and will
turn out more consistence performance, which is more valuable than one-time high
and otherwise volatile performance record.

The investor must evaluate the fund manager’s record, how his schemes have
performed over the years. There is a difference between institution managed funds that
have a team of managers with successful records as against funds that are managed
only by individuals. The reliability and track record of these sponsors has been an
important factor in investor perceptions. In the final analysis, asset management
companies and their fund managers ought to be judged on consistency in the returns
obtained, and performance record against competing or peer group managers running
similar funds. While transaction costs incurred are also an important factor.

STATISTICAL TOOLS USED FOR ANALYZING DATA.

To come to the finding of the research project an extensive use of statistical
techniques. Following tools have been used for analysis of data.

A) Average

It has been used to calculate average market returns and average returns of mutual
funds over the period of study.

40
Average weekly Rp= Current Week -Previous week +Dividend

Market Price Market Price

Previous week Market Price

Where,

RP= return on portfolio

B) Varaince

Variance of price of mutual funds from average price has been calculated to give an
idea of fluctuation in prices.

C) Standard Deviation

Standard deviation has also been calculated for the purpose of studying fluctuations in
prices.

D) Covariance

It is used to calculate Beta, which is arrived at by dividing covariance between return

of mutual fund schemes and market return by variance of market return.

Beta=COV(Rp,Rm)

41
 VAR(Rm)

E) Return of portfolio

Denoted by Rp

Rp=NAV(t)-NAV(t-1)+Dt

NAV(t-1)

Although the formula is like above but due to the non-availability of dividend data, we
calculated Rp by this method

Rp= NAV(t)-NAV(t-1)

NAV(t-1)

Where,

NAV (t)= net asset value of the portfolio for the present month

NAV (t-1)= net asset value of the portfolio for the previous month

Dt =dividend for the period under consideration

Average monthly return

The average monthly return have been arrived by dividing the summation of the
monthly returns for individual schemes by the total number of months for which the
return is calculated.

42
F) Risk of portfolio

Denoted by Sp

Sp= (Rp-AMRp)2

Rp= return of portfolio

AMRp= average monthly return of portfolio

N= Number of observations.

G) Market return

Denoted by Rm

Rm=M.I.(t)-M.I.(t-1)*100

M.I.(t-1)

Where,

M.I. (t) market index for the present month

M.I. (t-1) market index for the previous month

43
Avg Rm = (Rm1 + Rm2 + Rm3 +…….Rmn)/N

Rm1, Rm2, Rm3,……………. Are the returns for the 1st,2nd,3rd months respectively
and so on.

H) Market risk

Denoted by Sm

Sm=

(Rm-AMRm)2

Rm= return of market

AMRm= average monthly return of market

N= Number of observation

I) Yearly returns

Beside monthly and variability therefore, yearly returns are also computed. In place of
converting monthly return into yearly returns we have derived the yearly return
according to following formula:

YrRp%= NAV at year end-NAV in beginning of year

44
 NAV at the beginning of year

J)= Beta analysis

Beta measures the systematic risk, which is undiversifiable in nature. It shows how the
price of portfolio responds to market forces beta. Beta for overall market is equal to 1.
Beta can be calculated as:

β1=COV(Rp,Rm)

VARm

Where,

COV(Rp.Rm)= covariance of portfolio and market returns.

VARm= variance of the market.

Evaluation of performance of mutual fund

The performance of portfolio is measured by combining the risk and returns levels
with a single value. The differential return earned by a portfolio may be due to the
difference in the risk exposure from that of say, the stock market index. Following are
the major methods of assessing a risk-adjusted performance.

1) Sharpe’s performance measures for portfolios

45
The sharpe’s index measures the risk premium of the portfolio relative to the total
amount of risk in portfolio. The sharpe’s index is measured as

S= rp-rf/

σp

Where,

S= Sharpe’s index

Rp= average monthly return of fund

Rf= risk free return

Here the benchmark is additional return of market over risk free return related with
market portfolio’s total risk.

RVARm= rm-rf

σm

Where,

Rm = average weekly market return

RVARm is reward to variabilityof the market

*risk free return is taken as 5.5% per annum.

46
2) Treynor’s performance measures for portfolios

Jack treynor, as measures by portfolio beta coefficients put an index of portfolio

performance that is based on systematic risk, forward. It is used to rank the interest
performance of different assets. It is a risk- adjusted rate of return measure than is
calculated by dividing the assets risk premium by their beta coefficient.

Tn = rp-rf

βp

Where,

Tn = Treynor’s index

Rp = average return on portfolio

Rf = risk free return

Bp = beta coefficient of portfolio

3) Jensen measure

The Sharpe and Treynor index models provide measure for ranking the relative
performance of various portfolios on a risk- adjusted basis according to Jensen
equilibrium average return on a portfolio would be a benchmark. Equilibrium average
return is the return of the portfolio by the market with respect to systematic risk to
portfolio. This is a return the portfolio should earn with the systematic risk.

47
EARp = rf + (rm-rf) βp

Where,

EARp is equilibrium average return of the portfolio.

Difference between equilibrium average return of the portfolio indicates superior

performance of the fund. This is called as alpha(ά )

If the alpha is positive, the portfolio has performed better and if alpha is negative it has
not shown performance upto the benchmark, i.e. the market index.

USEFULNESS OF THE STUDY

This research work also has an applied basis in nature, which can be used for further
analysis and study. It has great practical application in investment decisions. An
investment can be suggested on the basis of the study. Persons interested in investing
in capital markets can use the results of the study to make comparison between risks
and returns offered by various mutual funds and to find out the most suitable avenue
for investment in capital market.

48
LIMITATIONS OF THE STUDY

1. Time constraint

Shortage of time was a very big constraint due to which less number of mutual funds
has included in the study.

2.Rresource constraint

Availability of data was a constraint due to which only those mutual funds data is
considered which is available and also there are some MF’s whose data was not
available so their duration was shortened.

3 Daily and monthly return

In calculating beta it is desirable to use daily returns because it gives us more number
of returns and therefore improve the accuracy of beta estimate. In this case we have
taken monthly return, which may not give beta as accurate as with daily returns.

4. Period of analysis

Generally longer period gives us a more accurate estimate of beta. In this case period
of analysis is only of 3 years.

5 .Complex calculation

Though every precaution has taken due to large data and complex calculations there
may be chances of error.

Though every precaution has taken due to large data and complex calculations there
may be chances of error.

49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
Performance Treynor used the alpha for performance evaluation. Which varies from
negative values to nice average values? Here negative values shows that the related
schemes even not performed near to risk free return.

69
 CHAPTER-6

FINDINGS AND CONCLUSIONS

The major findings of the study are as follows:

1. The debt schemes in private sector yield much higher average return than the
public sector. It means that performance of private sector mutual funds is better than
the public sector mutual funds.
2. The Assets under management (AMU) of public sector was previously (5 yrs
before) more but as compared to private sector mutual funds its share in total assets is
reducing year after year.
3. The mutual fund UTI, PRUDENTIAL ICICI, HDFC, FRANKLIN
TEMPLETON has maximum assets under management till dec 2005
4. The top ten schemes among the total schemes on the basis of total return are
TEMPLETON GSEC G, MAGNUM INCOME G, PRU ICICI LIQ G, LIC CHILD
FUND, UTI MAHILA UNIT G, HDFC CASH MGMT. SAVING PLAN G, BIRLA
GILT LIQUID G among these top performers 5 out of 7 are related to private sector.
5. The variation of monthly returns varies from 0.0025 of CANBANK mutual fund
scheme to 0.2201 HDFC mutual fund scheme. Here it is clear that private sector have
low variation in returns.
6. The study of risk (β) shows that most of the schemes varies less than 50%
variation in the market.
7. The private sector funds over- perform the public sector funds because of good
investment portfolio as well as the better advisory services provided by them to
investors.
8. Private sector debt schemes related to Gilt funds provide handsome return than
the other categories of debt funds.
9. 90% Debt schemes have risk less than the market risk.

70
Conclusion
In nutshell, the performance of public sector schemes is up to the mark of Benchmark
and expectation but they are over-performed by debt schemes of private sector mutual
fund houses. And among the Top 7 schemes performance, 5 are from private sector.
Investment pattern of both the sectors are slightly different, private sector inclined
more towards Equity investment rather than Debt investment. Overall the study
indicates that private sector performance are better , even they are only a decade old.

71
 BIBLOGHAPHY
1. BHOLE L.M. - Financial institutions and Markets- Structures, Growth and
innovations

2. CHANDRA PRASSANA - The Investment Game- How to Win

3. FRANCIS JACK CLARK - Investment Analysis and Management

4. ANAND SHALINI AND MONGA G.S - Net-Savvy Banking

5. BODLA B.S. AND TURAN M.S - Performance Appraisal of Mutual Funds

6. BANSAL LALIK K- Mutual funds- Management And Working

Web Sites Visited

• www.mutualfundsindia.com
• www.valuereserch.com
• www.amfiindia.com
• www.personalfx.com
• www.nseindia.com

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