Performance and Analysis of Mutual Funds in India

1
PROJECT REPORT - 2016
Summer Internship Project At
Topic
“A Study on Performance and Analysis of Mutual
Funds in India”
Submitted by: ADITYA MAHINDRAKAR
Guided by:
Mr. SHYAM SUTRAVE (Arth Chakra Advisory Services)
Supported by:
Mr.RAJIV VASUDEVAN (Vice President)
Ms.D.BHAVANI SHARMA (Asst. Vice president)

2
Summer Project Certificate
This is to certify that Mr. Aditya Mahindrakar, a student of Carlton Business
School has worked on a summer project titled “A Study on Performance and
Analysis of Mutual Funds in India”atUTI Mutual Fund, Hyderabad after
Semester – 2 in partial fulfillment of the requirement for the two year full
time Under Graduate Programme. This is his original work to the best of my
knowledge.
Date:
Signature
Mr.RajivVasudevan:
Ms.D.BhavaniSharma:

3
Declaration
I hereby declare that the following project titled “A Study on Performance and
Analysis of Mutual Funds in India” is an authentic work done by me. This is
to declare that all the work indulged in the competition of this work such as
research, data collection, analysis is a profound and honest work of mine
under the guidance of Mr. ShyamSutrave (ArthChakra Advisory Services).
Date:
Place: Hyderabad Aditya. M

4
Acknowledgement
I would like to thank the employees of “UTI Asset Management Company
Ltd.” and ArthChakra Advisory Services for giving me an opportunity to
intern with them. The training at the company was held over a period of 45
days. During this period, I was guided by the experts of the mutual fund
industry.
The project report and the learning process would not have been possible
without their inputs and guidance at critical points of the project. They
imparted to me the knowledge of mutual funds and shared with me the
practical marketing techniques of mutual funds. I express my thanks to
every one of them. These 45days were very important to me as it helped me
in going beyond the class room and get a practical feel of how things
worked.

5
Table of Contents
Sr. No
Title Page no.
1 Executive Summary of Mutual Funds 6
2 About UTI AMC Ltd. 7
3 History of Indian Mutual Fund Industry (Phases) 8
4 Objectives of Mutual Fund 10
5 Types of Mutual fund 11
6 Structure of Mutual Fund 14
7 Calculation of Risk Factors (Volatility) 15
8 Advantages & Disadvantages of Mutual Funds 16
9 Top 42 AMC’s Quarterly Average AUM (Chart) 18
10 Comparison of Schemes 20
11 Research Methodology 30
12 Sample of Questionnaire 31
13 Data Analysis & Interpretation 35
14 Conclusion 48
15 References 49

6
Executive Summary
Definition of Mutual Fund
A Mutual Fund is a trust that pools together the savings of a number of investors who
share a common financial goal. A mutual fund is nothing more than a collection of
stocks and/or bonds. You can think of a mutual fund as a company that brings together
a group of people and invests their money in stocks, bonds, and other securities. Each
investor owns shares, which represent a portion of the holdings of the fund.
The money thus collected is then invested in capital market instruments such as shares,
debentures and other securities.
You can make money from a mutual fund in three ways:
 Income is earned from dividends on stocks and interest on bonds. A fund pays out
nearly all of the income it receives over the year to fund owners in the form of a
distribution.
 If the fund sells securities that have increased in price, the fund has a capital gain. Most
funds also pass on these gains to investors in a distribution.
 If fund holdings increase in price but are not sold by the fund manager, the fund's
shares increase in price. You can then sell your mutual fund shares for a profit.

7
About UTI Asset Management Co.Ltd.
Type Public
Industry Mutual Fund
Founded 1964
Headquarters Mumbai, Maharashtra
Managing Director Leo Puri
Slogan Haq, ekbehtarzindagika
Website www.utimf.com

8
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.
 The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had
Rs.6, 700crores 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 public sector
banks and Life Insurance Corporation of India (LIC) and General Insurance
Corporation(GIC) of India.
 SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987

9
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 investors a wider choice of fund families.
 In 1993 was the year in which the first Mutual Fund Regulations came into being, under
which all mutual funds, except UTI were to be registered and governed.
Fourth Phase – since February 2003
 In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was
divided into two separate entities.
 One is the Specified Undertaking of the Unit Trust of India with assets under
management of Rs.29, 835crores as at the end of January 2003.
 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.

10
Objectives of Mutual Funds
Growth
While all funds share fundamental objectives, they vary widely in their investment
focus. For example, some are categorized as "growth" funds because their main
objective is to produce the largest possible returns over time, often without producing
immediate income in the form of dividends. To achieve that, they invest primarily in
equity stocks and other potentially high-return -- or high loss -- investments. Some are
relatively conservative, investing primarily in proven companies. Others are more
aggressive in search of returns, putting capital into emerging industries and new
economies that offer higher risks but potentially higher rewards. Growth funds are
good for young investors with long-term goals.
Income
Another common objective of mutual funds is income. Income-oriented funds are more
conservative, investing in a mixture of bonds, guaranteed-interest vehicles and stocks
that pay regular dividends. These funds can also provide a degree of long-term growth,
but their primary purpose is to generate a reliable income for their investors.
Retirement is an obvious time to buy income funds, but they have other uses. An
inheritance or other financial windfall can be invested in dividend funds to provide a
higher standard of living, or additional cash flow to meet specific goals. They're also a
way to turn a large settlement into income if you're ever disabled.
Capital Preservation
Sometimes, all an investor really wants is a safe place to park some money while riding
out a bad market. Bank accounts can serve that purpose, though they pay little interest
in most cases. Money market funds are a better option. They're specialized mutual
funds that act much like a savings account, but pay a better return. They're invested in
especially safe instruments such as treasury bills, which are issued by and backed by
the government. Your cash remains accessible on relatively short notice, and can be
withdrawn or re-invested as conditions improve. Conservative bond funds are less
liquid, but also useful for capital preservation.

11
TYPES OF MUTUAL FUNDS IN INDIA

12
Types of funds according to the structure
Open-ended Fund: An open-ended Mutual fund is one that is available for
subscription and repurchase on a continuous basis. These Funds do not have a fixed
maturity period.
Close-ended Fund :A close-ended Mutual fund has a stipulatedmaturity 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.
Types of funds according to Investment Objective
A scheme can also be classified as growth fund, income fund, or balanced fund
considering its investment objective.
Growth / Equity Oriented Scheme
The aim of growth funds is to provide capital appreciation over the medium to long-
term.
Such funds have comparatively high risks.
These schemes provide different options to the investors like dividend option, capital
appreciation, etc.
Income / Debt Oriented Scheme
The aim of income funds is to provide regular and steady income to investors.
Such schemes generally invest in fixed income securities such as bonds, corporate
debentures, Government securities and money market instruments.
Such funds are less risky compared to equity schemes.

13
Balanced Fund
The aim of balanced funds is to provide both growth and regular income as such
schemes invest both in equities and fixed income securities in the proportion indicated
in their offer documents.
These are appropriate for investors looking for moderate growth.
Money Market
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,
commercial paper and government securities, etc.
These funds are appropriate for corporate and individual investors as a means to park
their surplus funds for short periods.

14
STRUCTURE of the Mutual fund

15
Calculation of Risk factors in the mutual funds
When considering a fund's volatility, an investor may find it difficult to decide
which fund will provide the optimal risk-reward combination. There are five main
indicators of investment risk that apply to the analysis of stocks, bonds andmutual
fund portfolios.
They are,
 Alpha
 Beta
 R-Squared
 Standard Deviation
 Sharpe Ratio
 The Bottom Line
These statistical measures are historical predictors of investment risk/volatility and are
all major components of modern portfolio theory (MPT). The MPT is a standard
financial and academic methodology used for assessing the performance of equity,
fixed-income and mutual fund investments by comparing them to market benchmarks.
All of these risk measurements are intended to help investors determine the risk-
reward parameters of their investments.

16
ADVANTAGES OF MUTUAL FUNDS
 Portfolio diversification
It enables him to hold a diversified investment portfolio even with a small amount of
investment like Rs. 2000/-.
 Professionalmanagement:
The investment management skills, along with the needed research into available
investment options, ensure a much better return as compared to what an investor can
manage on his own.
 Reduction/Diversification of Risks
The potential losses are also shared with other investors.
 Reduction of transaction costs
The investor has the benefit of economies of scale; the funds pay lesser costs because
of larger volumes and it is passed on to the investors.
 Wide Choice to suit risk-returnprofile
Investors can choose the fund based on their risk tolerance and expected returns.
• Liquidity
Investors may be unable to sell shares directly, easily and quickly. When they invest in
mutual funds, they can cash their investment any time by selling the units to the fund if
it is open-ended and get the intrinsic value. Investors can sell the units in the market if
it is closed-ended fund.
• Convenience and Flexibility

17
Investors can easily transfer their holdings from one scheme to other; get updated
market information and so on. Funds also offer additional benefits like regular
investment and regular withdrawal options.
• Transparency
Fund gives regular information to its investors on the value of the investments in
addition to disclosureof portfolio held by their scheme, the proportion invested in each
class of assets and the fund manager's investment strategy and outlook.
DISADVANTAGES OF MUTUAL FUNDS
• No control over costs
The investor pays investment management fees as long as he remains with the fund,
even while the value of his investments are declining. He also pays for funds
distribution charges which he would not incur in direct investments.
• No tailor-made portfolios
The very high net-worth individuals or large corporate investors may find this to be a
constraint as they will not be able to build their own portfolio of shares, bonds and
other securities.
• Managing a portfolio of funds
Availability of a large number of funds can actually mean too much choice for the
investor. So, he may again need advice on how to select a fund to achieve his
objectives.
• Delay in redemption
Ittakes 3-6 days for redemption of the units and the money to flow back into the
investor’s account.

18
AMC wise Quarterly Average AUM
Sr.
No
Mutual Fund
Name
No. of
schemes
QAAUM
Date
QAAUM (Rs.
Cr)
Prev
Date
Prev
QAAUM
(Rs. Cr)
Inc/Dcr
(Rs. Cr)
1
ICICI Prudential
Mutual Fund
1155 Mar-16 175960.6 Dec-15 178492.23 -2531.67
2
HDFC Mutual
Fund
1481 Mar-16 175266.2 Dec-15 171183.66 4082.49
3
Reliance Mutual
Fund
1007 Mar-16 159095.5 Dec-15 157506.08 1589.46
4
Birla Sun Life
Mutual Fund
717 Mar-16 136152.1 Dec-15 135841.05 311.06
5 SBI Mutual Fund 651 Mar-16 107114 Dec-15 100399.85 6714.19
6 UTI Mutual Fund 1164 Mar-16 106134.3 Dec-15 105893.6 240.68
7
Franklin
Templeton
Mutual Fund
200 Mar-16 67840.76 Dec-15 71683.33 -3842.57
8
Kotak Mahindra
Mutual Fund
406 Mar-16 58719.02 Dec-15 55094.35 3624.67
9
IDFC Mutual
Fund
415 Mar-16 52038.34 Dec-15 54511.46 -2473.12
10
DSP Blackrock
Mutual Fund
384 Mar-16 39915.72 Dec-15 38816.51 1099.21
11
Axis Mutual
Fund
252 Mar-16 37764.52 Dec-15 34563.47 3201.05
12
Tata Mutual
Fund
322 Mar-16 31545.05 Dec-15 31252.46 292.59
13 L&T Mutual Fund 240 Mar-16 25558.02 Dec-15 24661.13 896.89
14
DHFL Pramerica
Mutual Fund
473 Mar-16 23825.77 Dec-15 24484.8 -659.03
15
Sundaram
Mutual Fund
476 Mar-16 23571.91 Dec-15 21691.55 1880.36
16
Invesco Mutual
Fund
228 Mar-16 19513.71 Dec-15 19785.94 -272.23
17
JM Financial
Mutual Fund
179 Mar-16 16160.9 Dec-15 15867.77 293.13
18 LIC Mutual Fund 169 Mar-16 13068.81 Dec-15 12134.66 934.15
19
Baroda Pioneer
Mutual Fund
103 Mar-16 9639.94 Dec-15 9234.56 405.38
20
CanaraRobeco
Mutual Fund
142 Mar-16 8020.23 Dec-15 7493.96 526.27
21
HSBC Mutual
Fund
156 Mar-16 7902.39 Dec-15 8373.89 -471.5
22
IDBI Mutual
Fund
88 Mar-16 6871.01 Dec-15 7537.45 -666.44
23
JPMorgan
Mutual Fund
136 Mar-16 6389.63 Dec-15 7469.49 -1079.86
24
Goldman Sachs
Mutual Fund
18 Mar-16 6101.4 Dec-15 6851.79 -750.39

19
25
Indiabulls
Mutual Fund
54 Mar-16 5289.54 Dec-15 4916.75 372.79
26
PRINCIPAL
Mutual Fund
122 Mar-16 5281.06 Dec-15 5878.75 -597.69
27
BNP Paribas
Mutual Fund
114 Mar-16 5097.07 Dec-15 5004.98 92.09
28
MotilalOswal
Mutual Fund
31 Mar-16 4689.21 Dec-15 4548.18 141.03
29
Taurus Mutual
Fund
65 Mar-16 3948.58 Dec-15 3503.34 445.24
30
Mirae Asset
Mutual Fund
45 Mar-16 3125.93 Dec-15 2791.2 334.73
31
Union KBC
Mutual Fund
57 Mar-16 2872.75 Dec-15 2665.14 207.61
32
BOI AXA Mutual
Fund
76 Mar-16 2385.01 Dec-15 2356.14 28.87
33
Edelweiss
Mutual Fund
61 Mar-16 1658.62 Dec-15 1610.43 48.19
34
Peerless Mutual
Fund
57 Mar-16 985.24 Dec-15 1024.41 -39.17
35
IL & FS Mutual
Fund
6 Mar-16 922.96 Dec-15 900.29 22.67
36
Quantum Mutual
Fund
15 Mar-16 660.93 Dec-15 655.32 5.61
37
PPFAS Mutual
Fund
2 Mar-16 613.57 Dec-15 629.32 -15.75
38
IIFL Mutual
Fund
15 Mar-16 370.59 Dec-15 309.33 61.26
39
IIFCL Mutual
Fund
1 Mar-16 357.98 Dec-15 342.94 15.04
40
Escorts Mutual
Fund
60 Mar-16 285.59 Dec-15 292.22 -6.63
41
Sahara Mutual
Fund
68 Mar-16 99.29 Dec-15 106.87 -7.58
42
Shriram Mutual
Fund
4 Mar-16 37.17 Dec-15 37.12 0.05

20
Comparison of schemes of UTI with the
schemes of other Asset Management
Companies
UTI M.F & BIRLA SUN LIFE M.F
Fund Category: Theme based (MNC)
Fund name Year of Inception
Asset Under Management
(AUM)
UTI MNC Fund July, 1998 Rs.1963 cr
Birla Sun Life MNC Fund April, 1994 Rs.3382 cr
24.01%
33.32%
38.62%
4.05%
25.75%
9.95%
59.23%
5%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
Giant or Mega
cap
Large cap Mid cap Small
Market Capitalisation
UTI MNC Fund
Birla Sun Life MNC Fund

21
2.6
12.8
0.86
16.36
2.4
18.3
0.87
17.54
0
5
10
15
20
Expense Ratio Alpha Beta Standard deviation
Volatility Measures
UTI MUTUAL Fund
BIRLA MNC Fund
0.63%
27.36%
19.50% 18.12%
1.77%
32.35%
22.42%
18.53%
0.00%
10.00%
20.00%
30.00%
40.00%
1 Yr Return 3 Yr Return 5 Yrs Return Since Inception
Returns
UTI MNC
Birla MNC

22
UTI M.F& SBI M.F
Fund Category: Pharma Sector
(AUM)
UTI Pharma& Healthcare fund June, 1999 Rs.311 cr
SBI Pharma fund July, 1999 Rs.997 cr
32.50%
39.03%
24.03%
4.40%
30.64%
23.99%
36.07%
9.31%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
Giant or Mega cap Large cap Mid cap Small
UTI Pharma
SBI Pharma
2.88
1.12 0.94
16.62
2.46
6.63
0.99
18.5
0
5
10
15
20
Volatility Measures
UTI Pharma
SBI Pharma

23
-3.40%
21.02%
16.84% 15.71%
-1.70%
28.13%
24.27%
18.54%
-15.00%
-5.00%
5.00%
15.00%
25.00%
35.00%
Returns
UTI Pharma
SBI Pharma

24
UTI M.F & FRANKLIN TEMPLETON M.F
Fund Category: Large Cap
Fund name
Year of Inception Asset Under Management
(AUM)
UTI Equity Fund May, 1992 Rs.4994 cr
Franklin India Flexi Cap Fund March, 2005 Rs.2864 cr
53.07%
28.30%
18.63%
0%
50.70%
24.15% 22.81%
2.34%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Giant or Mega
cap
Large cap Mid cap Small
UTI Equity
Franklin India Flexi Cap
2.34
6.66
0.95
15
2.31
10.89
0.95
15.32
0
5
10
15
20
Volatility Measures
UTI Equity
Franklin India Flexi Cap

25
2.68%
19.79%
13.51% 12.37%
2.36%
24.60%
14.25%
17.77%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
Returns
UTI Equity
Franklin India Flexi

26
UTI M.F & HDFC M.F
Fund Category: Mid Cap
Fund name Year of inception
(AUM)
UTI Mid-Cap fund April, 2004 Rs.3321 cr
HDFC Mid-Cap fund June, 2007 Rs.10997 cr
4.30%
17.30%
59.30%
18.70%
2.30%
23%
62.80%
11.60%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
Giant or Mega cap Large cap Mid cap Small
UTI Mid-Cap
HDFC Mid-Cap
2.4
19.32
1
18.9
2.32
15.8
0.97
17.5
0
5
10
15
20
25
Volatility Measures
UTI Mid-cap
HDFC Mid-Cap

27
6.23%
38.49%
21.60% 20.03%
8.69%
33.20%
20.06%
16.84%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
Returns
UTI Mid-Cap
HDFC Mid-Cap

28
UTI M.F & ICICI M.F
Fund Category: Liquid Plus
(AUM)
UTI Floating Rate fund August, 2003 Rs.4771 cr
ICICI Prudential Savings fund November, 2005 Rs.6079 cr
8.58% 8.97% 8.93%
7.39%
8.36% 8.78% 9.04%
8.13%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
1 Yr Return 3 Yrs Return 5 yrs Return Since Inception
Returns
UTI Floating Rate
ICICI Prud Savings
AAA
21%
A1+
36%
AA
33%
Others
10%
Credit Rating Break-Up
(UTI Floating Rate Fund)

29
AAA, 14.00%
A1+, 30.00%
AA, 39.00%
Others,
17.00%
Credit Rating Break-Up
(ICICI Prud Savings Fund)

30
RESEARCH METHODOLOGY
ThisReport is based on primary as well assecondary data, however primary data
collection was given more important since it is overhearing factor in attitude studies.
One of the most important uses of Research Methodology is that it helps in
identifying the problem, collecting, analyzing the required information or data and
providing an alternative solution to the problem.
a) Research Design:Descriptive Design
b) Data Collection Method:Survey Method
c) Universe: Hyderabad
d) Sampling Method: The sample was collected through personalvisits and office visits,
formally and informal talks and through filling up the Questionnaire prepared. The data
has been analyzed by using mathematical or statistical tools.
e) Sample Size: 70 respondents
f) Data Collection Instrument: Structured Questionnaire
g) Sample Design: Data has been presented with the help of various Pie charts.

31
QUESTIONNAIRE
A study of preferences of the investors for investment in mutual funds.
1. What kind of investments you prefer most? Pl tick (√). All applicable
a. Saving account b. Fixed deposits c. Insurance d. Mutual Fund
e. Post Office-NSC, etc. f. Shares/Debentures g. Gold/ Silver h. Real Estate
i. PPF j. PF
2. While investing your money, which factor you prefer most? Any one
Liquidity Low Risk High Return Company reputation
3. Have you ever invested your money in mutual fund?
Yes No
If yes,
a) Where do you find yourself as a mutual fund investor?
Totally ignorant [ ]
Partial knowledge of mutual funds [ ]
Aware only of any specific scheme in which you invested [ ]
Fully aware [ ]
b)How do you come to know about the Mutual fun
a. Advertisement b. Peer Group c. Banks d. Financial Advisors

32
If no,
If not invested in Mutual Fund then why?
Not aware of MF Higher risk Not any specific reason
4. Which feature of the mutual funds attract you most?
Diversification Better return and safety Risk reduction
Less transaction cost Regular income Tax benefit
5. In which Mutual Fund you have invested? Please tick (√). All applicable.
a. SBI MF
b. UTI
c. HDFC
d. Reliance
e. ICICI Prudential
f. Others, specify
6. When you invest in Mutual Funds which mode of investment will you prefer?
a. One time investment b. Systematic Investment Plan (SIP)
7. Where from you purchase mutual funds?
a. After taking advice from MF distributor or advisor
b. Directly from the AMCs
c. Online Purchase

33
8. Which AMC will you prefer to invest?
a. SBIMF
b. UTI
c. Reliance
d. HDFC
e. Kotak
f. ICICI
g. Others, specify
9. Which type of fund are you investing in Mutual Funds?
a. Equity fund
b. Liquid fund
c. Balanced fund
d. Sectoral fund
e. Debt fund
f. Tax-saving fund
Mention Fund name -
10.How would you like to receive the returns every year?
a. Dividend payout b. Dividend re-investment c. Growth in NAV
11. Personal Details:
(a). Name:-
(b). Addr: - Contact No:-
(c). Age:-
(d) Email ID:

34
(e). Occupation. Pl tick (√)
Govt. Sec Pvt. Sec Business Agriculture Others
(g). what is your monthly family income approximately? Pl tick (√).
Up to 10000/-
10000-30000/-
30000-60000/-
60000 & above
(h) What is the percentage of savings from your total income?
<10%
10-25%
25-50%
>50%
Any Suggestions:
-----THANK U-----

35
DATA ANALYSIS &INTERPRETATION
1. Analysis according to the kind of investments
Interpretation
Here, it is been found that 48% peopleare investing in mutual funds.
Then the second highest number of people who are investing into fixed deposits and real
estate (i.e., 18%).
The least percentage is 2%, who are investing into PPF (Public Provident Fund).
Savings
a/c, PF
8%
FD, Real estate
18%
Insurance,
gold,silver
13%
Mutual Fund
48%
PO-NSC
5%
PPF
2%
Shares,
debentures
6%

36
2. Analysis according to the factors they prefer most
while investing in Mutual Funds
Interpretation
Here, it is been found that most of the investors (i.e., 44%) of mutual fund prefer
high returns while investing money in mutual fund.
30% of people prefer low risk as their factor while investing into mutual fund.
Liquidity is preferred by 14% of investors and the least number of people who
prefer company reputation (12%).
Liquidity
14%
Low risk
30%High return
44%
Company
reputation
12%

37
3. Analysis according to the investors of Mutual Fund
Interpretation
From the above pie chart, we can analyse that 71% of the total data are the
investors of the mutual fund and 21% have never invested in Mutual Funds.
YES
71%
NO
29%

38
4.Analysis according to the sources of Mutual Fund
Interpretation
From the above pie chart, it’s been found that 60% of the investors of mutual
fund invest their money after taking the advice from Individual Financial Advisors.
And, 13% from Banks and the rest of 27% of the investors have the information
through advertisement.
Advt
27%
Banks
13%
Financial
advisors
60%

39
5.Analysis according to the most attractive features of
Mutual Fund
Interpretation
Here, it is been found that 26% of people while investing into mutual funds see
for the better return and 21% of people for better diversification in their portfolio.
Diversification
21%
Better return
26%
Risk reduction
15%
Less transaction
cost
6%
Regular income
13%
Tax benefit
19%

40
6.Analysis according to the mode of investment
Interpretation
It can be clearly stated from the above pie chart that, 57% of the investors like to
invest in Systematic Investment Plan (SIP) as the investor feels that they are more
comfortable to save through SIP than the one-time investment.
While 43% of the investors find SIP as very burdensome, and they are more
reluctant to save in one-time investment.
One time
investment
43%
SIP
57%

41
7.Analysis according to the most preferred Asset
Management Company (AMC)
Interpretation
From the above pie chart, it is clearly stated that 41% of the investors prefer to
invest in the UTI Mutual Fund.
The second highest numbers of people (26%) prefer SBI to invest their money.
SBI
26%
UTI
41%
Reliance
7%
HDFC
12%
Kotak
2%
ICICI
12%

42
8.Analysis according to the type of fund
Interpretation
As it can be clearly stated that almost 41% of investors invest in Equity/Growth
fund where 100% of money invest in stocks of different companies as per fund’s
objective.
Sectoral and Tax-saving schemes are used by 32% of the investors.
While the least number of people are investing in debt and liquid schemes.
Equity
41%
Liquid
9%
Balanced
10%
Sectoral
16%
Debt
8%
Tax saving
16%

43
9. Analysis according to the mode of receiving returns every
year
Interpretation
From the above pie chart we can predict that almost 70% of the investors who are
investing in mutual funds like to receive the returns in the form of Growth option
to get better compounding returns.
And, the rest 30% like receiving the returns in the form of dividend pay-out and
re-investment.
17%
13%
70%
Dividend pay-out
Dividend re-investment
Growth in NAV

44
10.Analysis according to the occupation
Interpretation
The above chart concludes that 70% of the investors of mutual fund are from the
private sector because to diversify their investments in a better manner to get
maximum returns.
The least number of people (8%) are from the Government sector and they want
to invest in traditional investment methods like: FDs,PPF,Post office savings etc. to
get fixed and guaranteed returns.
70%
8%
10%
12%
Pvt sector
Govt sector
Business
Others
(students,agriculture)

45
11. Analysis according to the monthly family income
Interpretation
Here, we can tell that the investors who earn more than Rs.60000/- per month
are the major investors of the mutual fund (49%).
While 23% of the people who invest in the mutual fund fall under the income
category of Rs.30000-60000/- per month.
(Rs.5000-
30000)
28%
(Rs.30000-
60000)
23%
(Rs.60000 &
above)
49%

46
12.Analysis according to the percentage of savings from
total income
Interpretation
Here, it can be clearly stated from the above chart that 46% of the investors have
the savings of 10-25% from their total income and this needs to increase further
by educating clients about Mutual Funds.
36%
46%
16%
2%
Less than 10%
10-25%
25-50%
More than 50%
Savings

47
13.Analysis according to the Age
Interpretation
From the above chart, we can tell that 28% of the total investors of mutual fund
are of aged 36-45.
The second highest number of people who are of age 26-35 are investing in the
mutual funds because they have a lot of savings at that particular age.
below 25
14%
26-35
26%
36-45
28%
46-55
18%
56 & above
14%

48
CONCLUSION
Mutualfunds now represent perhapsmost appropriate investment
opportunityfor most investors. As financialmarkets become more
sophisticatedand complex, investors need a financialintermediary
who provides the required knowledge and professional expertise on
successful investing.
In MutualFund industry, advisors are the backbone and they advise
as per the objective of client.
Equity and BalancedMutual Fundsare made for the clients who
want to invest for longer period.
People who want to invest for shorter period like less than 2-3
years; they should invest under Debt MutualFunds, because risk is
lesser as compared with 100% EquityMutual Funds.
People who want safer returns and high liquidity,they have the
option of LiquidPlus category. This fund is alternativeto Current
and Savings a/c.
People who want to save on regular basis like monthly or quarterly
mode they can opt for Systematic Investment Plan (SIP), which gives
stable returns over a period of time.

49
References
Websites
1. www.valueresearchonline.com
2. www.amfiindia.com
3. www.moneycontrol.com/mutualfundindia
4. www.arthchakra.com

Performance and Analysis of Mutual Funds in India

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

En vedette

En vedette (20)

Similaire à Performance and Analysis of Mutual Funds in India

Similaire à Performance and Analysis of Mutual Funds in India (20)

Dernier

Dernier (20)

Performance and Analysis of Mutual Funds in India