A study on

Performance of mutual funds

1
CHAPTER-1
INTRODUCTION

2
INTRODUCTION
Definition of Mutual Funds:
Mutual fund is a investment vehicle made from a pool of coins collected from many
shoppers for the motive of endowing in securities like stocks, bonds, marketplace
gadgets and distinctive property.

An open-end fund is actually the concerning bridge or a monetary intermediary that

allows assemblage of customers to pool their cash along a predetermined funding
goal. The open-give up fund could have a fund supervisor who is accountable for
making an funding the assembled cash into specific securities (shares or bonds).
Once you invest at some point of an open-stop fund, you're buying gadgets or
quantities of the open-prevent reserve and accordingly on making an investment
turns into a shareholder or unit holder of the fund.

Mutual finances are taken into consideration together of the simplest to be had
investments as examine to others they're very rate successful and also easy to spend
money on, for that reason thru pooling coins collectively inside the path of an open-
end fund, consumers should buy shares or bonds with a good deal lower buying and
selling fees than in the event that they tried to try and it on their very own. However
the maximum crucial gain to mutual rate variety is diversification, with the aid of
using minimizing chance & maximizing returns

The open-give up fund is mounted around a reasonably easy concept, the mitigation
of danger through the spreading of investments across a couple of entities, which is
executed by means of the pooling of type of small investments into an outsized
bucket. But, it's far been the concern of probably the foremost problematic and
extended regulatory attempt in the records of the united states of a. The mutual fund
corporation has grown to massive proportions in international locations much like
america, in India it's nevertheless inside the phase of infancy.

The starting place of the Indian open-forestall fund employer is often traced decrease
again to 1964 whilst the Indian government, if you want to underpin small financial
savings in the u . S . And to channelize these economic financial savings to the
capital markets, determined out the unit funding take delivery of as actual with of
India (UTI). The UTI changed into setup beneath a specific statute, the unit

3
investment agree with of India Act, 1963. The unit investment accept as true with of
India launched its first open-ended equity scheme referred to as Unit sixty four in the
yr 1964, which clothed to be one the diverse essential famous open-quit fund
schemes in the u .S .. In 1987, the government authorized different public area banks
and coverage companies to marketplace open-stop fund schemes. Pursuant to the
existing rest, six public area banks and coverage agencies’ viz. Life assurance
employer of India and general coverage agency of India launched open-give up fund
schemes in the u.S.A. Of the united states.

Securities alternate Board of India, better known as SEBI, formulated the open-
surrender fund (law) 1993, which for the primary time established a entire regulatory
framework geared toward the open-give up fund industry. This established to be a
boon for the open-stop fund employer and for the reason that then numerous mutual
price range are positioned out through the non-public area also because the joint
region. Kothari Pioneer open-end fund have emerge as the primary from the personal
area to determine an open-end fund in association with a much off fund. Due to the
fact that then numerous private zone organizations have installed their personal price
range within the united states of america, making open-stop fund organization one
some of the foremost accompanied sector by way of critics and customers alike. The
percentage of personal quarter mutual finances too has long gone up unexpectedly.

4
1.2 NEED FOR THE STUDY:
The necessity for the examine of doing this challenge was to understand about
mutual price range and its functioning. The mutual rate variety are dynamic
monetary intuitions which play anprincipal role in the economic system by way of
mobilizing savings and making an funding them within the capital marketplace. The
sports of mutual price range have each short and .Long time impact on the savings in
the capital marketplace and consequently the economy .Mutual finances, agree with,
assist the technique of monetary deepening & intermediation. To banking at an
equivalent time moreover they compete with banks and different economic
institutions. India is one a number of the few international locations to day keep a
have a look at fee of boom is home financial savings.

5
1.3 OBJECTIVES OF THE STUDY:

1. To factor out the wide selection of investment options obtainable in Mutual

finances thru explaining diverse schemes presented with the resource of four
particular Asset management companies.
2. To recognize the cutting-edge trends inside the Mutual price range world.
3.To apprehend the risk and return of the varied schemes.
4. To are seeking out the numerous issues faced via Indian mutual charge range and
possible solutions.

1.4 HYPOTHESIS:

There is not any distinction among mutual fund’s performance schemes among
decided on groups.

6
1.5 SCOPE OF THE STUDY:
The scope of the examiner of mutual rate variety is restrained to the evaluation made
for a boom scheme provided via the asset controllingorganization.Each scheme is
calculated their threat and return the usage of wonderful performance size theories
The examiner analyzes the overall performance of business enterprise supported that
legitimate idea is to take delivery of to the corporate. Graphs are wont to mirror the
portfolio danger and move returned.

1.6 RESEARCH METHODOLOGY

Research Methodology is that the systematic, theoretical analysis of the techniques

Finished to a topic of have a take a look at. It encompasses the theoretical evaluation
of the frame of strategies and principles related to a department of records.
Primary records
Primary statistics are that the data it is composed with the useful resource of a
researcher from first hand resources using strategies like surveys, interviews, or
experiments.
Secondary statistics
The secondary records composed from the diverse sites, broachers, newspapers, and
corporation provide files, one among kind books and thru guidelines from the
challenge manual and from the faculty participants of our college.
Agency name: Kotak Mahindra
Source of statistics: Secondary statistics
Period of the study: 45 Days
Duration of the examine: 2015-2019
Tools &strategies: Beta, Alpha, coefficient of correlation,
Treynor’s Ratio & Sharpe’s Ratio.
Equipment AND strategies
The following parameters have been considered for evaluation:
• Beta: it's a diploma of the volatility, or systematic danger, of a protection or a
portfolio as compared to the entire marketplace or a benchmark. Beta is hired within
the Capital Asset Pricing version (CAPM), which calculates the predicted go back of

7
an asset supported its beta and predicted market returns. Beta is additionally called
the beta coefficient.
• Alpha: “Alpha" (the Greek letter α) may be a time period utilized in making an
investment to give an reason for a method's potential to triumph over the market, or
it's far "part." Alpha is therefore also frequently called “extra go back” or “abnormal
price of cross again,” which refers back to the idea that markets are efficient, then
there's no manner to systematically earn returns that exceed the vast marketplace as a
whole . Alpha is commonly applied together with beta (the Greek letter β), which
measures the large marketplace's typical volatility or danger, known as systematic
marketplace danger.
• Correlation Coefficient: The coefficient of correlation may be a statistical degree
that calculates the electricity of the relationship some of the relative movements of
the two variables.
• Treynor’s Ratio: The Treynor ratio, also raised to because the praise-to-volatility
ratio, can be a metric for figuring out what percentage more return became generated
for every unit of risk taken on through a portfolio. Excess go back at some point of
this experience refers to the cross lower back earned above the move lower back that
would are earned sooner or later of a danger-free funding. Even though there may be
no correct risk-free funding, treasury payments are regularly wont to symbolize the
threat-unfastened cross returned inside the Treynor ratio.
• Sharpe’s Ratio: The Sharpe ratio was developed via Noblest William F. Sharpe,
and is employed to help traders is aware of the go back of an funding as compared to
its hazard. The ratio is that the common return earned in extra than the chance-free
fee in line with unit of volatility or total chance.
.

8
1.7 LIMITATIONS OF THE STUDY

1. The have a look at is accompanied in brief duration, manner to which study might
not be sure altogether aspects.

2. The test is delimited best to the analysis of severa schemes and its suitability to
exceptional buyers regular with their risk-taking capability.

Three. The have a look at is primarily based on secondary statistics available from
month-to-month truth sheets, web websites; provide documents, magazines and
newspapers and many others., as primary information wasn't accessible.

4. They've a stare at is confined thru the one-of-a-kind have a study of assorted

schemes.

Five. The NAV’S are not uniform.

6. The statistics gathered for this study is not proper due to the truth some mutual
budget aren't disclosing the right facts.

7. Take a look at isn't exempt from barriers of Sharpe Treynor and Jenson degree.

Eight. Particular hazard is absolutely left out altogether the degree.

9
CHAPTER-II

THEORITICAL FRAMEWORK &

REVIEW OF LITERATURE

10
REVIEW OF LITERATURE

A Mutual Fund is a monetary intermediary which acts as a device of funding.

It collects the budget from one-of-a-kind customers to a common pool of investible

price variety after which invests the ones budget in a large kind of investment

opportunities in numerous portfolios of securities which includes cash Markets

device, corporate and government bonds and fairness stocks of joint stock

companies.

The investment can be numerous to spread risk and to make sure properly pass again

to the buyers. The Mutual funds rent expert, professionals and investment experts to

behavior funding evaluation and then to select the portfolio of securities wherein the

rate variety are to be invested.

Every investor owns gadgets, which constitute a portion of the holdings of the fund.

You could make cash from a MF in 3 methods:-

 profits is earned from dividends on stocks and interest on bonds. A Fund will pay

out nearly all income it gets over the 365 days to fund owners inside the shape of a

distribution.

 If the fund sells securities which have multiplied in price, the fund has a capital

gain. Most price range also pass on those earnings to investors inside the form of

dividends.

 If fund holdings growth in rate but aren't bought thru the fund manager, the fund’s

shares increase in fee. You can then sell your Mutual Fund gadgets for a profits.

Finances may even typically offer you with a preference every to gather a cheque for

dividends or to re-invest the equal and get greater gadgets.

1. Equity finances:

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Fairness finances are taken into consideration to be the greater volatile finances

compared to unique fund kinds, but they also provide higher returns than one-of-a-

kind finances. It is useful that an investor looking to invest in an equity fund need to

invest for long term i.E. For 3 years or greater. There are unique styles of equity rate

range each falling into wonderful threat strut. Inside the command of lowering

hazard diploma, there are succeeding forms of equity fee variety:

(1) competitive increase budget: In competitive growth fee variety, fund managers

aspire for optimum capital appreciation and put money into a reduced amount of

researched stocks of Speculative nature. Due to the ones speculative investments

aggressive growth price range end up greater risky and because of this, are prone to

better risk than one-of-a-kind equity fee range.

 increase price range: boom capital budget also invest for capital appreciation

(with time horizon of 3 to 5 years) however they'll be inimitable from aggressive

growth price range inside the experience that they invest in businesses which might

be predicted to outperform the market within the destiny. Without absolutely

adopting speculative strategies, growth finances spend money on the ones companies

which may be expected to put up above not unusual income inside the destiny.

 forte finances: specialty price range have said customs for investments and their

portfolio comprises of only the ones companies that meet their standards. Standards

for a few sturdy point price range could be to make investments/now not to make

investments especially areas/agencies. Distinctiveness budget are targeted and due to

this, are especially riskier than severa budget. There are next styles of area of

expertise finances:

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 region budget: fairness budget that put money into a specific zone/business

enterprise of the market place are referred to as region rate range. The publicity of

these price range is restrained to a particular sector (say facts generation, automobile,

Banking, pharmaceuticals or rapid shifting client gadgets) it's miles why they are

more volatile than fairness price variety that invest in a couple of sectors.

 overseas Securities budget: overseas Securities fairness fee range have the option

to spend money on one or greater overseas agencies. Overseas securities price range

accumulate international diversification and consequently they will be a lot less risky

than region price variety. But, foreign places securities budget are uncovered to

remote places trade charge hazard and united states hazard.

 Mid-Cap or Small-Cap finances: price range that capitalize in groups having

decrease market capitalization than big capitalization groups are referred to as Mid-

Cap or Small-Cap price range. Marketplace capitalization of Mid-Cap businesses is

masses a good deal much less than that of large, blue chip companies (a excellent

deal plenty much less than Rs. 2500 crores but extra than rs. 500 crores) and Small-

Cap agencies have marketplace capitalization of lots much less than Rs. 500 crores.

Marketplace Capitalization of a company can be calculated thru multiplying the

marketplace price of the organisation’s percentage via using the general large style

of its great stocks within the marketplace. The stocks of Mid-Cap or Small-Cap

organizations are not as liquid as of big-Cap agencies which gives rise to volatility in

share fees of these corporations and consequently, funding receives unstable.

 various fairness finances: except for a small quota of funding in liquid cash

market, numerous fairness budget make investments especially in equities without

any cognizance on a specific location(s). Those rate stages are nicely diverse and

decrease vicinity-specific or organisation-unique hazard. But, like severa one-of-a-

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kind budget severa equity rate range too are exposed to equity marketplace hazard.

One incredible type of numerous equity finances in India is fairness related financial

savings Schemes (ELSS). As in line with the mandate, now not much less than

ninety% of investments thru ELSS want to be in equities always. ELSS traders are

eligible to say deduction from taxable earnings (up to Rs 1 lakh) at the time of filing

the earnings tax goes back. ELSS commonly has a lock-in period and in case of any

redemption through the investor earlier than the expiry of the lock-in length makes

him susceptible to pay income tax on such profits(s) for which he may additionally

moreover have obtained any tax exemption(s) inside the beyond.

 fairness Index budget: equity Index price range obligate the goal to wholesome

the overall performance of a selected stock market index. The portfolio of these

finances incorporates of the identical groups that form the index and is constituted

within the identical percent because of the fact the index. Equity index price range

that observe sizable indices (like S&P CNX Nifty, Sensex) are

 a lot less unstable than equity index price range that examine slim sectoral indices

(like BSEBANKEX or CNX financial institution Index and so forth). Slender indices

are masses much less different and therefore, are extra unstable.

.Debt/profits price range:budget that put money into medium to long-time period

debt gadgets issued with the resource of personal groups, banks, economic

institutions, governments and exclusive entities belonging to severa sectors (like

infrastructure companies and so forth.) are known as Debt / profits budget. Debt

charge variety are low danger profile price range which might be trying to find for to

generate constant current income (and no longer capital appreciation) to customers.

With a purpose to make sure regular income to clients, debt (or income) price variety

distribute massive fraction in their surplus to consumers. No matter the truth that

14
debt securities are typically a outstanding deal a lot much less unstable than equities,

they're problem to credit score score score risk (risk of default) via using the issuer

on the time of hobby or essential rate. To reduce the risk of default, debt finances

generally spend money on securities from issuers who are rated with the aid of

manner of credit score rating rating score organizations and are considered to be of

"investment Grade". Debt fee degrees that target immoderate returns are more

unstable. Primarily based on unique funding dreams, there may be following types of

debt budget:

 diversified Debt budget: Debt budget that invest in all securities issued with the

aid of manner of entities belonging to all sectors of the market are stated as

numerous debt fee variety. The top notch feature of severa debt finances is that

investments are properly one-of-a-kind into all sectors which leads to chance

reduction. Any loss incurred, as a result of default thru a debt employer, is shared

with the useful resource of all traders which in addition reduces chance for an person

investor.

 focused Debt price range: in contrast to numerous debt budget, centered debt fee

range are slender interest finances which may be confined to investments in selective

debt securities, issued by corporations of a particular region or industry or origin.

Some examples of targeted debt rate variety are place, specialized and offshore debt

budget, price range that invest best in Tax free Infrastructure or Municipal Bonds.

Due to the fact in their narrow orientation, targeted debt budget are extra volatile in

assessment to diverse debt budge. Although not but available in India, those finances

are plausible and may be supplied to investors very soon.

 confident return price range: even though it isn't always important that a fund will

meet its dreams or provide assured returns to consumers, however there can be

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finances that consist of lock-in duration and provide assure of annual returns to

buyers all through the lock-in length. Any shortfall in returns is suffered through way

of the sponsors or the Asset management corporations (AMCs). These budgets are

usually debt price range and provide traders with a low-threat investment possibility.

But, the safety of investments is primarily based upon the internet well worth of the

guarantor (whose call is specific in advance at the provide record). To guard the

interests of traders, SEBI permits handiest the ones price range to provide confident

move again schemes whose sponsors have ok internet-properly worth to assure

returns within the future. Inside the past, UTI had provided assured go back schemes

(i.E. Month-to-month profits Plans of UTI) that assured centered returns to buyers in

the future. UTI become not able to fulfill its guarantees and faced big shortfalls in

returns. In the end, authorities had to intervene and took over UTI's rate obligations

on itself. Presently, no AMC in India gives confident return schemes to customers,

though possible.

 constant term Plan collection: fixed time period Plan series commonly are closed-

prevent schemes having short time period maturity length (of plenty much less than

three hundred and sixty five days) that offer a sequence of plans and trouble devices

to buyers at everyday periods. In contrast to closed-give up price range, constant

time period plans aren't indexed on the exchanges. Fixed term plan series normally

invest in debt / profits schemes and target short-time period investors. The objective

of fixed time period plan schemes is to

 Gratify buyers by using generating some anticipated returns in a quick length.

 1.Open-give up

 2.Closed-give up

 3.GiltFunds

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 also referred to as authorities Securities in India, Gilt budget spend money on

government papers (named dated securities) having medium to long time adulthood

period. Issued by means of the government of India, those investments have little

credit score danger (danger of default) and provide safety of most important to the

traders. But, like numerous debt budget, gilt budget too are uncovered to interest fee

danger. Interest fees and costs of debt securities are inversely related and any

exchange inside the interest prices outcomes in a alternate within the NAV of

debt/gilt price range in a opposite direction.

2. Cash marketplace/Liquid funds:

Money market / liquid price range put money into quick-term (maturing within three

hundred and sixty five days) hobby bearing debt gadgets. These securities are quite

liquid and provide protection of investment, hence being profitable marketplace /

liquid price range the safest funding desire whilst as compared with other mutual

fund kinds. However, even money market / liquid budget are exposed to the interest

fee chance. The everyday funding options for liquid finances encompass Treasury

bills (issued thru governments), business papers (issued by means of the use of

organizations) and certificates of Deposit (issued with the aid of banks).

3. Hybrid finances: as the call shows, hybrid rate range are the ones price variety

whose portfolio consists of a mix of equities, debts and coins market securities.

Hybrid budget have an equal proportion of debt and equity in their portfolio. There

are following sorts of hybrid funds in India:

 Balanced budget – The portfolio of balanced price range encompass belongings

like debt securities, convertible securities, and equity and preference stocks held in a

relatively same proportion. The objectives of balanced price range are to reward

customers with a normal earnings, moderate capital appreciation and at the same

17
time minimizing the hazard of capital erosion. Balanced charge variety are

appropriate for conservative buyers having a long time funding horizon.

 increase-and-income funds – budget that integrate capabilities of growth price

range and income finances are referred to as increase-and-profits finances. Those

budgets spend money on agencies having ability for capital appreciation and those

recognised for issuing high dividends. The degree of risks involved in those budgets

is decrease than increase charge variety and better than income rate range.

4. Debt/profits funds:

The ones finances that focus on investing in particular commodities (like metals,

meals grains, crude oil and so on.) or commodity groups or commodity futures

contracts are termed as Commodity price range. A commodity fund that invests in a

single commodity or a fixed of commodities is a specialized commodity fund and a

commodity fund that invests in all to be had commodities is a numerous commodity

fund and bears less threat than a specialised commodity fund. “treasured Metals

Fund” and Gold budget (that put money into gold, gold futures or shares of gold

mines) are common examples of commodity finances.

5. Real gift finances:

Funds that make investments without delay in actual property or lend to actual

property developers or put money into shares/securitized property of housing finance

companies, are known as specialised real estate budget. The goal of these finances

can be to generate ordinary earnings for buyers or capital appreciation.

18
CHAPTER-III

COMPANY PROFILE

19
COMPANY PROFILE

Kotak Mahindra financial institution is the fourth largest Indian private

region economic corporation with the aid of way of market capitalization, based

totally in Mumbai, Maharashtra.

Because the inception of the erstwhile Kotak Mahindra Finance limited in 1985, it's

been a ordinary and assured journey fundamental to growth and fulfillment. The

milestones of the enterprise growth tale are indexed under yr clever.

2019

Reserve financial institution of India (RBI) approves merger of ING Vysya

economic group with Kotak Mahindra financial institution effective April 1, 2019.

2019

Thrust on virtual and social with the discharge of innovative answers - first-of-its-

type absolutely blanketed social financial institution account - 'Jifi', and global's first

financial institution agnostic immediately budget switch platform using fb -

'KayPay'. Ultimately in Jan 2019, 'Jifi Saver' - a savings monetary institution account

with strong and seamless transactions on popular social networks come to be

launched.

Kotak Mahindra bank acquires 19% fairness stake in Multi Commodity change of

India limited (MCX)

Kotak Mahindra Asset control corporation Ltd. Acquires schemes of Pinebridge

Mutual Fund

Kottak Mahindra organisation announces its foray into desired coverage commercial

business enterprise

Our organizations

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A couple of organizations.One emblem.

Kotak Mahindra is solitary in all India's main banking and monetary offerings

companies, providing a huge kind of monetary offerings that embody every sphere of

lifestyles.

Kotak Mahindra financial institution Ltd

• Kotak Mahindra monetary group Ltd is a one save you shop for all banking wishes.

The financial group offers non-public finance solutions of each type from financial

savings debts to credit rating rating playing playing cards, distribution of mutual

budget to life coverage products. Kotak Mahindra economic institution offers

transaction banking, operates lending verticals, manages IPOs and presents strolling

capital loans. Kotak has absolutely absolutely one of the maximum critical and

maximum reputable Wealth manage groups in India, providing the widest kind of

answers to immoderate net well worth individuals, marketers, commercial

organisation families and employed professionals.

For added records, please go to the Kotak Mahindra economic institution net internet

site www.Kotak.Com/economic group/private-banking/

Kotak Mahindra antique Mutual existence coverage Ltd

• Kotak Mahindra prolonged-standing Mutual existence coverage Ltd is a seventy

four:26 joint project among Kotak Mahindra financial institution Ltd., its friends and

vintage Mutual area. A company that combines its worldwide strengths and

neighborhood blessings to offer its clients a large form of current existence coverage

products, assisting them takes critical economic alternatives at each degree in

existence and live financially impartial. The enterprise covers over three million

lives and is one of the fastest developing insurance agencies in India.

21
CHAPTER-IV

DATA ANALYSIS

22
DATA ANALYSIS

PORTFOLIO OF THE FUND

Equity Sector JAN 2019 Mar 2019

India Bulls Banking/Finance 17.39 16.86

ICICI Bank Banking/Finance 19.86 19.42
HDFC Bank Banking/Finance 19.72 19.20
HCL Tech Technology 14.43 19.21
Strides Arcolab Pharmaceuticals 19.25 14.83
Grasim Conglomerates 19.26 9.23
Tata Motors (D) Automotive 14.88 8.14
ITC Tobacco 10.88 6.65
Sun Pharma Pharmaceuticals 9.71 5.37
Amara Raja Batt Automotive 8.78 4.14

Table 4(a)

25

India Bulls
20 Banking/Finance
ICICI Bank Banking/Finance
HDFC Bank
Banking/Finance
15
HCL Tech Technology
Strides Arcolab
Pharmaceuticals
10 Grasim Conglomerates
ITC Tobacco
Sun Pharma
5 Pharmaceuticals
Amara Raja Batt
Automotive
0
Jan-19 Mar-19

Chart Showing Asset Allocation Of Tata Balanced Fund

23
Equity Debt Money Market Cash / Call
6% 2%
17%

75%

Figure 4.2

INTERPRETATION

From the above analysis, TATA Balanced Fund Portfolio includes seventy five.00%

equity holdings, 17.63% Debt, 6.00% cash marketplace &

coins/call 2%. It's far obvious from the records that even

though the investors have danger taking ability, they balanced

their investments with the aid of investing in Debt

additionally.

24
FUND : BIRLA OPEN-ENDED BALANCED

Purpose : The Scheme targets to balance income necessities with

growth of capital through balanced blend of funding

in equity and debt

PORTFOLIO OF THE FUND

Sector JAN 2019 Mar 2019

a Birla 19.14 16.86

B Pharmaceuticals 11.95 11.23

C Oil & Gas, Petroleum & 11.04 10.26

Refinery
D Banks 10.29 9.40

E Auto & Auto ancillaries 7.59 7.43

F Computers - Software & 4.93 5.19

Education
G Securities 2.25 4.97
H Sugar 4.22 4.87
I Tobacco & Pan Masala 4.46 4.81

J Breweries & Distilleries 6.04 4.74

K Debt 17.39 14.88
L Money market 6.70 5.40

25
Table 4 (b)

25

20

15
Sector
Jan-19
10 Mar-19

0
a B C D E F G H I J K L

5% 15%

EQUITY
DEBT
Money Market

80%

Figure 4.4

INTERPRETATION

From the above evaluation BIRLA Balanced Fund Portfolio consists of seventy

nine.72percentfairness holdings, 14.88% Debt, five.40% money marketplace. It's

miles obvious from the data even though the investors have threat taking potential,

they balanced their investments through making an investment in Debt additionally.

26
FUND : PRU ICICI OPEN-ENDED BALANCED increase

FUND

Goal : aims to spend money on equity and debt oriented securities so as

to offer investor balanced returns. PORTFOLIO OF THE FUND

Sector Jan 2019 Mar 2019

A icici 11.47 19.17

B Securities 9.75 19.52

C Oil & Gas, Petroleum & 10.90 10.83

Refinery

D Engineering & Industrial 6.74 8.58

Machinery

E Telecom 6.48 6.00

F Miscellaneous 0.00 5.31

G Finance 9.41 4.84

H Electricals & Electrical 3.64 4.36

Equipment’s

I Cement 6.35 4.09

J Steel 4.97 3.49

27
k Debt 24.98 22.08

L Money market 5.31 1.73

Table 4 (c)

30

25

20

Sector
15
Jan-19
Mar-19
10

0
A B C D E F G H I J k L

Figure 4.5

2% 22%

EQUITY
DEBT
Money Market

76%

Figure 4.6

INTERPRETATION

28
From the above evaluation Pru ICICI Balanced Fund Portfolio consists of 76.19%

fairness holdings, 22.08% Debt, 1.Seventy three% coins market. It is apparent from

the facts that even though the buyers have hazard taking capability, they balanced

their investments with the aid of the use of making an investment in Debt moreover.

29
FUND : DSP MERRILL LYNCH OPEN-ENDED BALANCED

GROWTH FUND

OBJECTIVE : Seeks to generate long term capital appreciation and

current income from a portfolio constituted of equity

and equity related securities as well as fixed income

securities.  

PORTFOLIO OF THE FUND

Sector Jan 2019 Mar 2019

A Dspmerrill lynch 19.10 2.48

B Finance 14.03 14.88

C Oil & Gas, Petroleum & 14.47 14.14

Refinery
D Engineering & Industrial 5.65 4.41

Machinery

E Fertilizers, Pesticides & 6.05 4.38

Agrochemicals

F Power Generation, 3.01 3.60

Transmission & Equip

G Housing & Construction 2.88 3.59

H Computers - Software & 5.87 3.40

30
Education
I Pharmaceuticals 3.20 2.44

J Entertainment 2.59 2.44

K Debt 20.92 37.84

L Money market 6.23 10.40

Table 4 (d)

Figure 4.7

40

35

30

25
Sector
20
Jan-19
15 Mar-19

10

0
A B C D E F G H I J k L

31
10%

52% EQUITY
DEBT
38% Money Market

Figure 4.8

INTERPRETATINON

From the above evaluation,DSP Merrill Lynch Balanced Fund Portfolio includes

51.76%equity holdings, 37.84%Debt, 10.40% cash market. It's miles glaring from

the statistics that although the traders have risk taking capability, they balanced their

investments through investing in Debt also.

32
FUND : JM FINANCIAL OPEN-ENDED BALANCED

GROWTH

OBJECTIVE : Aims to make available investors with liquidity and

current income along with capital appreciation

PORTFOLIO OF THE FUND

Sector Jan 2019 Mar 2019

A Banks 14.72 19.95

B Housing &Construction 19.14 16.70

C Finance 9.49 11.45

D Steel 11.44 11.41

E Computers – Software & 4.64 7.62

Education
F Cement 2.92 6.65

G Miscellaneous 4.58 4.19

H Tobacco &Pan masala 0.00 3.66

I Edible Oil & Vanaspati 3.99 3.50

J Rubber &Tyres 0.95

K Debt 24.91
L Money market 5.24

Figure 4 (e)

33
INTERPRETATION

From the above evaluation, Balanced Fund Portfolio includes 51.76percentfairness

holdings, 37.84%Debt, 10.Forty% cash market. It's far apparent from the records that

although the traders have chance taking ability, they balanced their investments

through investing in Debt also.

34
30

25

20

Sector
15
Jan-19
Mar-19
10

0
A B C D E F G H I J K L

Figure 4.9

2% 12%

EQUITY
DEBT
Money Market

86%

Figure 4.10

INTERPRETATION :

From the above evaluation, JM Balanced Fund Portfolio includes 86.03% fairness

holdings, 14.14% Debt, % 1.Eighty five% money market. It's miles clear from the

statistics that even though the buyers have danger taking capacity, they balanced

their investments with the aid of investing in Debt also.

35
TATA OPEN-ENDED BALANCED GROWTH FUND

DAT 1st 29th Jun 31st 26th Oct 27th 28th Feb 31stMar14

E Apr11 11 Aug 11 11 Dec 11 14

NAV 50.92 48.29 54.42 58.19 61.95 71.61 67.31

Table 4 (f)

 Fund performance and NAV values over a period of 1 year.

NAV
80

70

60

50 NAV
40

30

20

10

Figure 4.11

INTERPRETATION: From the above table we find that Tata Open ended fond

balanced growth fund is very impressive from last one year. We can see on

28thfeb2019 recorded highest Nav as 71.61. The found performance is too good to

invest for a long term base.

BIRLA OPEN-ENDED BALANCED GROWTH FUND

36
DAT 1st Apr 29th Jun 31st 26th Oct 27th Dec 28th Feb 31stMar19

E 14 14 Aug 14 14 14 19

NAV 28.37 27.18 29.63 31.66 33.18 33.54 32.19

Table 4 (g)

 Fund performance and NAV values over a period of 1 year.

NAV
35
30
25
20
NAV
15
10
5
0
2 12 2 2 13 3
r1 n 2 t1 c1 b ar
1
t Ap Ju ug1 Oc De Fe tM
1s th A th th th 1s
29 st 26 27 28 3
31

INTERPRETATION:

From the above counter we find that Birla Open ended fond balanced growth fund is

moderate from last one year. We can see on 28 thfeb 2019 recorded highest Nav as

33.54. The found performance is good to invest for a long term base.

PRU ICICI OPEN-ENDED BALANCED GROWTH FUND

DAT 1st Apr 29th Jun 31st 26th Oct 27th Dec 28th Feb 31stMar19

37
E 14 14 Aug 14 14 14 19

NAV 35.84 33.46 36.39 36.32 39.90 43.53 41.27

Table 4 (h)

 Fund performance and NAV values over a period of 1 year.

NAV
45
40
35
30
25
20 NAV
15
10
5
0
2 12 2 2 13 3
r1 n 2 t1 c1 b ar
1
Ap Ju g1 Oc De Fe M
t th u th th th st
1s 29 t A
26 27 28 31
3 1s

Figure 4.19

INTERPRETATION:

From the above investigation, we find that Pru ICICI Open ended fond Balanced

growth fund is very impressive from last one year. We can see on 28 thfeb 2019

recorded highest Nav as 43.53. The found performance is too good to invest for a

long term base.

DSP MERRILL LYNCH OPEN-ENDED BALANCED GROWTH

FUND

DAT 1st Apr 29th Jun 31st 26th Oct 27th Dec 28th Feb 31stMar19

E 14 14 Aug 14 14 14 19

38
NAV 39.33 36.97 42.50 44.56 47.46 51.92 50.14

Table 4 (i)

 Fund performance and NAV values over a period of 1 year.

NAV
60
50
40
30
NAV
20
10
0
2 12 2 2 13 3
r1 n 2 t1 c1 b ar
1
Ap Ju g1 Oc De Fe M
t th u th th th st
1s 29 t A
26 27 28 31
3 1s

Figure 4.14

INTERPRETATION:

From the above examination, we find that DSP Merrill Lynch Open ended fond

Balanced growth fund is very impressive from last one year. We can see on 28 thfeb

2019 recorded highest Nav as 51.92. The found performance is too good to invest for

a short term base.

JM FINANCIAL OPEN-ENDED BALANCED GROWTH FUND

DAT 1st Apr 29th Jun 31st 26th Oct 27th Dec 28th Feb 31stMar19

E 14 14 Aug 14 14 14 19

NAV 23.87 21.92 24.73 27.30 29.91 31.61 28.45

39
Table 4 (j)

 Fund performance and NAV values over a period of 1 year.

NAV
35
30
25
20
15 NAV
10
5
0
2 12 2 2 13 3
r1 n 2 t1 c1 b ar
1
Ap Ju g1 Oc De Fe M
t th u th th th st
1s 29 st
A
26 27 28 31
31

Figure 4.19

INTERPRETATION:

From the above analysis, we treasure that JM Financial Open ended fond balanced

growth fund is very impressive from last one year. We can see on 28 thfeb 2019

recorded highest NAV as 31.61. The found performance is too good to invest for a

short term base.

PERFORMANCE EVALUATION

The subsequent formula can be used to evaluate Mutual fund performance:-

NAVt + Dt
1
NAVt – 1

40
Where:

NAV t = per-share net asset value at the termination of year t

Dt= Capital appreciation during year.

NAV t-1 = per-share net asset value at finished of the previous year.

41
PERFORMANCE EVALUATION OF SELECTED FUNDS

NAV t-1 = 1st April, 2019

NAV t = 31st March, 2019

1) TATA Open-Ended Balanced growth Fund

NAV t-1 NAV t D t (NAV t NAV t-1)

50.9259 67.3149 16.387

Applying the formula we get-

= 67.3149+16.387- 1

50.9295

= 0.6434 x 100

= 64.34%

2) BIRLA Open-Ended Balanced growth Fund

NAV t-1 NAV t D t (NAV t NAV t-1)

28.37 32.19 3.78

Applying the formula we get-

= 32.19+3.78 - 1

28.37

= 0.2664 x 100

= 26.64%

3) PRU ICICI OPEN-ENDED BALANCED GROWTH FUND

42
NAV t-1 NAV t D t (NAV t NAV t-1)
35.84 41.27 5.43

Applying the formula we get-

= 41.27+5.43 - 1

35.84

= 0.3030 x 100

= 30.30%

4) DSP MERRILL LYNCH Open-Ended Balanced growth Fund

NAV t-1 NAV t D t (NAV t NAV t-1)

39.339 50.146 10.807

Applying the formula we get-

= 50.146+10.807 - 1

39.339

= 0.5494 x 100

= 54.94%

5) JM FINANCIAL Open-Ended Balanced growth Fund

NAV t-1 NAV t D t (NAV t NAV t-1)

23.87 28.4438 4.5738

Applying the formula we get-

43
= 28.4438+4.5738- 1

23.87

= 0.3832 x 100

= 38.32%

FUND PERFORMANCE RANKING

Name of the Fund NAV Rank

Tata open-ended Balanced Growth Fund 64.34% 1

DSP Merrill Lynch open-ended Balanced Growth 2

Fund 54.94%

JM Financial open-ended Balanced Growth Fund 3

38.32%

Pru ICICI open-ended Balanced Growth Fund

30.30% 4

Birla open-ended Balanced Growth Fund 26.64% 5

Table 4 (k)

44
5
4
4.5 3
2
3 1
1.5
0

Rank

Figure 4.16

45
Comparative Study of the performance of the Selected
AMC’s
Sharp index and Treynor index are calculated
For the month of October 2014

Sharp's Treynor Jenson

Return Risk(std Beta
Name of the Fund Rf (Rm-
(Rm) dev) (β) (Rm- (Rm-
Rf)/β
Rf)/σ Rf)/β

SBI Magnum Equity Fund -0.42 2.19 0.75 0.06 -0.22 -0.64 -0.44
Growth

-0.28 1.69 0.51 0.06 -0.20 -0.67 -0.47

Birla Sun life 95 Growth

Reliance 30 Growth -0.35 2.07 0.75 0.06 -0.20 -0.55 -0.55

TATA Equity
Management Fund -0.42 1.86 0.65 0.06 -0.26 -0.73 -0.3
Growth

Sharpe's Index
0.00
SBI Magnum Equity Birla Sunlife 95 Kotak 30 Growth TATA Equity
-0.05
Fund Growth Growth Management Fund
Gr...
-0.10

-0.15

-0.20

-0.25

-0.30

Name of the Fund

The Graphical Representation OF Sharp Index

Figure.11

46
Interpretation:
 From the above study, we can know that Birla sun life and Reliance are
giving good returns and they are in first position,
 And the second position is SBI

The
Treynor's Ratio
0.00
SBI Magnum
-0.10 Birla Sunlife 95 Kotak 30 Growth TATA Equity
Equity Fund Growth Management
Growth
-0.20 Fund Growth
-0.30
-0.40
-0.50
-0.60
-0.70
-0.80
Name of the Fund

Graphical Representation of Treynor Index:

Figure.14
INTERPRETATION
 From the above examine, we can understand Reliance is appearing well and it
is in first role
 And the second one role is SBI
 the general fashion in the decline of the market rate for numerous mutual
finances studied isn't encouraging the inventory market index has also been falling
constantly because of popular financial slowdown however the budget are ranked
considering sharp and trenyors in the order of performances

47
The
Jensen's Measure
0.00
SBI Birla Kotak 30 TATA
Magnum... Sunlife 95
-0.10 Growth Equity
Gr... Mana...
-0.20
-0.30
Axis -0.40
Title
-0.50
-0.60
-0.70
-0.80
Name of the Fund
Graphical Representation Of Jensen’s Index:

Figure.19
INTERPRETATION

 From the aboveanalysis, we can know Reliance is carrying out well and it is in first

position

 The general trend in the decline of the market price for various mutual funds studied

is not encouraging the stock market index has also been falling continuously because

Of general monetary slowdown however the price range are ranked considering sharp

and Jensen’s in the order of performances

TEST OF HYPOTHESIS:
48
Name of the Fund NAV Rank

Tata open-ended Balanced Growth Fund 64.34% 1

DSP Merrill Lynch open-ended Balanced Growth 2

Fund 54.94%

JM Financial open-ended Balanced Growth Fund 3

38.32%

Prue ICICI open-ended Balanced Growth Fund

30.30% 4

Birla open-ended Balanced Growth Fund 26.64% 5

INTERPRETATION

From the above study were compare to TATA open ended balanced growth fund
and DSP Merrill lynch open ended balanced growth rate is 64.34% is having highest
net annual value when compare to others funds. Hence BIRLA open ended growth
fund is having highest growth rate. Hence this hypothesis is rejected.

49
CHAPTER-V
FINDING
SUGGESTION
CONCLUSION

FINDINGS:

1. SHARPE’S
As in step with Sharpe overall performance measure, a immoderate Sharpe ratio is
ultimate because it suggests a advanced danger adjusted standard overall

50
performance of a fund. From the above desk Birla solar life and Reliance show a
better chance-adjusted common performance out of top4 AMC’S.
2. TREYNOR’s
As in line with TREYNOR’S ratio the Treynor’s praise to volatility - having
immoderate notable index is favorable. Consequently, as constant with this ratio
furthermore Reliance MUTUAL FUND is maximum appropriate.
Three.. JENSEN
As in line with Jensen ratio the Jensen reward to instability ratio having immoderate
first-class index is favorable. Therefore, as consistent with this ratio moreover
BIRLA SUNLIFE MUTUAL FUND is final.

4. SHARPE’S
As in keeping with Sharpe regular usual overall performance degree, a excessive
Sharpe ratio is maximum excessive best because it indicates a superior chance
adjusted common overall performance of a fund. From the above table UTI
MUTUAL price variety display the higher threat-adjusted ordinary performance
among top 6 AMC’S
5. JENSEN
As normal with Jensen ratio the Jensen reward to volatility ratio having immoderate
high-quality index is favorable. Consequently, as in line with this ratio additionally
HDFC MUTUAL price range are pinnacle of the line 

51
SUGGESTIONS:

1. Monetary desires & Time frame

2. In phrases of equity percentage and bond weightings, disadvantage chance
Three. Safety, tax blessings supplied, dividend payout insurance, vicinity attention
Four. Overall performance of severa budgets with comparable dreams for at least 3-
five years
5. Think difficult about making an funding in area finances for exceedingly
aggressive buyers
6. Close to touch with dispositions in location, evaluation portfolio regularly – look
for `load' expenses
7. Look for length and credentials
Eight. Asset duration a lot less than Rs. 25 Crores
9. Diversify, however no longer an excessive amount of
10. Invest frequently, choose

52
CONCLUSION:

From the check assessment completed it is clear that during equity

finances-BIRLA SUNLIFE MUTUAL FUND is performing thoroughly. Making an
funding inside the RELIANCE MUTUAL FUND (increase) will ends in income. By
means of seeing the overall typical overall performance RELIANCE MUTUAL
FUND is acting thoroughly. The searching for what you offer are had to be made
aware of the investment in mutual price range. The industry should hold consistency
and transparency in its management and shoppers desires. There is one hundred%
boom of mutual fund as overseas AMCS are in queue to enter the Indian markets.
Mutual funds can also penetrate in to rural areas the S-I-PMF- an necessary part of
your monetary monetary savings and wealth constructing plans.

53
BIBILIOGRAPHY
Text Books
1.L.M.Pandey, (9th edition), Financial Management, 11 e,Vikas

publications,2015

2.M.Y Khan, P K Jain, Financial management-Text and problems,

8e,Mc Grew Hill,2019

3. .Prasanna Chandra, Financial Management,10e Mc Graw

Hill,2019

4..Eugene. F.Brighan, Financial Management, Cengage

Learning,12e,2012

WEBSITES

1.WWW.AMFINDIA.COM

2.WWW.RELIGARE.COM

3.WWW.BSEINDIA.COM

4.WWW.NSEINDIA.COM

54