Final Project On Mutual Funds in HDFC Amc

NAME: SARANG AGARWAL
ROLL NO: 70
SEMESTER: VI
COURSE: BACHELOR OF BUSINESS ADMINISTRATION
MENTOR: Dr. MANJISHTHA MAITRA
TOPIC: MUTUAL FUNDS AN INVESTMENT AVENUE
Dissertation submitted in partial fulfilment of
The requirements of the Graduate Degree in
BACHELOR OF BUSINESS ADMINISTRATION (HONOURS)
J.D. BIRLA INSTITUTE (MANAGEMENT SECTION)
KOLKATA
To,
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The Controller of Examinations

Jadavpur University,
Kolkata.
Respected Sir,
I, Sarang Agarwal, take full ownership of this work, titled MUTUAL FUNDS
AN INVESTMENT AVENUE. All the references used are well acknowledged in the
bibliography.
This Term Paper is in partial fulfilment of the requirements of Graduation
Degree in Bachelors of Business Administration (Honours) from Jadavpur University.
Yours Sincerely,
SARANG AGARWAL
REGISTRATION No.: 122401 (of 2012-2013)
ROLL No.: BBA 70
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DECLARATION
I declare the following:
The word count of the dissertation is: 12,814 words.
The material contained in this dissertation is the end result of my own work. Due
acknowledgement has been given in the bibliography and references to all sources be they
printed, electronic or personal.
I am aware that my dissertation may be submitted to a plagiarism detection service where it
will be stored in a database and compared against work submitted from this institute or from
any other institutions.
In the event that there is a high degree of similarity in content detected, further investigation
may lead to disciplinary actions including the cancellation of my degree according to
Jadavpur University rules and regulations.
I declare that ethical issues have been considered, evaluated and appropriately addressed in
this research.
I agree to an entire electronic copy or sections of the dissertation to being placed on the eleaning portal, if deemed appropriate, to allow future students the opportunity to see
examples of past dissertations and to be able to print and download copies if they so desire.
SIGNED:
DATED:
NAME: SARANG AGARWAL

ROLL NO/BATCH: Roll No. 70, Registration No. -BBA 122401, Batch of 2012-15.
MENTOR: Dr. MANJISHTHA MAITRA
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ACKNOWLEDGEMENT
I would like to express my gratitude to all those who gave me their support to complete my
dissertation. I express my feelings and gratitude and sincere thanks to the director of our
college, Dr. J. N. Mukhopadhyaya.
I am deeply indebted to my mentor/supervisor at J. D. BIRLA INSTITUE
(MANAGEMENT SECTION), Dr. Manjishtha Maitra for her unending support, direction
and guidance throughout the course of research of material for the project as well as for the
final compilation.
I am deeply indebted to my mentor/supervisor at HDFC ASSET MANAGEMENT
COMPANY LIMITED, Mr. Arghya Dutta Gupta and Mr. Ankit Agarwal for their
unending support, direction and guidance throughout the course of research of material for
the project as well as for the final compilation.
I would also like to express my heartfelt thanks to the coordinators and staff of the
Learning Resource Centre of our college, who assisted me to avail the relevant books and
allowed me to carry out the necessary research for my project work.
The various websites from which information was acquired have proved to be very helpful
and valuable sources of information in my project.
I would further like to acknowledge my parents and friends for their indispensable support to
make this project a success.
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ABSTRACT
Mutual fund industry has experienced a drastic growth in the past two decades. Increase in
the number of schemes with increased mobilization of funds in the past few years notes the
importance of Indian mutual funds industry. To fulfil the expectations of millions of retail
investors, the mutual funds are required to function as successful institutional investors.
Proper assessment of various fund performance and their comparison with other funds helps
retail investors for making investment decisions.
The main aim of this paper is to evaluate the performance of mutual fund schemes ranked 1,
2 and 3 by CRISIL and compare these returns with the benchmark indices Sensex.
Considering the interest of retail investors simple statistical techniques like averages and rate
of returns, correlation between return of schemes are used. The results obtained from the
study clearly depicts that, in most of the cases the schemes has higher return than the Sensex
but is also risky apart from UTI Top 100 Fund which thus proves to be an ideal investment.
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INDEX
SERIAL
NUMBER
1
CONTENTS
Introduction
PAGE
NUMBER
9 11
1.1
Background of the Mutual Fund Industry
1.2
National and International Scenario
10 11
1.3
Aims and Objective of the Research
11
Literature Review
2.1
Brief History On Mutual Funds In India
2.2
Advantages Of Mutual Funds
12 22
12 13
14 15
2.3
Structure Of Mutual Funds In India
15 16
2.4
Classification Of Mutual Funds
16 19
2.5
Journal Reviews
19 22
Company Profile
3.1
HDFC Asset Management Company Limited
3.2
Products Offered By HDFC AMC
23 29
23
23 30
Research Methodology
31
Data Analysis and Interpretation
32 35
Results and Conclusion
36 37
6.1
Result and Finding
36
6.2
Conclusion
36
6.3
Limitations
36 37
6.4
Scope for Further Research
37
Bibliography
38 39
Annexure
40 52
LIST OF TABLES
PAGE
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NUMBER
CORRELATION 1: Showing relationship between return of Sensex and return of
Birla Sun Life Top 100 Funds
TABLE 1: Showing the expected return and risk associated with Sensex and Birla
Sun Life Top 100 Funds and Other Ratios
UTI Top 100 Funds
TABLE 2: Showing the expected return and risk associated with Sensex and UTI
Top 100 Funds and Other Ratios
HDFC Top 200 Funds
TABLE 3: Showing the expected return and risk associated with Sensex and HDFC
Top 200 Funds and Other Ratios
LIST OF FIGURES
40
41 43
44
45 47
48
49 51
PAGE
NUMBER
GRAPH 1: Showing the difference between the risk and return of Sensex and Birla
Sun Life Top 100 Funds
40
GRAPH 2: Showing the difference between the risk and return of Sensex and UTI
Top 100 Funds
44
GRAPH 3: Showing the difference between the risk and return of Sensex and
HDFC Top 200 Funds
48
GRAPH 4: Showing the difference between the risk and return of Sensex, Birla Sun
Life Top 100 Funds, UTI Top 100 Funds and HDFC Top 200 Funds
52
1. INTRODUCTION
1.1 BACKGROUND OF THE MUTUAL FUND INDUSTRY
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[1]
Different investment avenues are available to investors. Mutual funds also offer good
investment opportunities to the investors. Like all investments, they also carry certain risks.
The investors should compare the risks and expected yields after adjustment of tax on various
instruments while taking investment decisions. The investors may seek advice from experts
and consultants including agents and distributors of mutual funds schemes while making
investment decisions. With an objective to make the investors aware of functioning of mutual
funds, an attempt has been made to provide information in question-answer format which
may help the investors in taking investment decisions.
[2]
Mutual fund is the pool of the money, based on the trust who invests the savings of a
number of investors who shares a common financial goal, like the capital appreciation and
dividend earning. The money thus collect is then invested in capital market instruments such
as shares, debenture, and foreign market. Investors invest money and get the units as per the
unit value which we called as NAV (net assets value). Mutual fund is the most suitable
investment for the common man as it offers an opportunity to invest in diversified portfolio
management, good research team, professionally managed Indian stock as well as the foreign
market, the main aim of the fund manager is to taking the scrip that have under value and
future will rising, then fund manager sell out the stock. Fund manager concentration on risk
return trade off, where minimize the risk and maximize the return through diversification of
the portfolio.
[1]
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 stocks may not move in
the 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.
The profits or losses are shared by the investors in proportion to their investments. The
mutual funds normally come out with a number of schemes with different investment
objectives which are launched from time to time. A mutual fund is required to be registered
with Securities and Exchange Board of India (SEBI) which regulates securities markets
before it can collect funds from the public.
1.2 NATIONAL AND INTERNATIONAL SCENARIO
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[3&4&5]
The Indian mutual fund industry is passing through a transformation. On one side it has
seen a number of regulatory developments while on the other the overall economy is just
recovering from the global crisis of 2008.
The mutual fund industry spanning almost two decades now has seen its share of success and
failure. It is quite commendable that we have reached a mark of almost 10 trillion INR of
assets under management as of May 2014. This has been a result of collaboration of all
industry stakeholders like the distributor, the asset management company and the regulator
who has shaped the way forward for the industry.
Indian mutual fund industry has immense potential to grow even if it is able to reach 20%
levels of the countries like Brazil and Indian investors are better informed about the benefits
of investment as compared to alternative investment avenues.
According to the Report by PWC and KPMG, Asset under Management (AUM) as
percentage of GDP in India is 4.12% as against Australia 88.22%, Germany 10.54%, Japan
7.57%, UK 18.81%, USA 61.27%, Canada 34.33%, France 59.63% and Brazil 19.95%.
It was observed that IMFI is in fast growth phase; competition is becoming fierce with
mergers and takeovers and building of brand exercise through focused advertising, better
customer service, newer distribution channels, consistent return and newer products offerings.
The mutual fund industry which witnessed downfall in 1991 when its declined to Rs.4100
core achieved significant growth in 1998 and the total industry became worth Rs.72, 000
crores and ever since this has kept increasing, revealing its efficient growth. In fact, the
months of February and March considered toughest due to large-scale redemptions to meet
tax liabilities also were active.
Despite domestic MF growing at substantially higher rate in last 3 years, it is still many times
behind US MF industry, the size of which is estimated at over US$ 12 trillion as against about
Rs.5 lakh crore of India with its market penetration of 4% of total population, compared to
49% in the US and 20% in UK. In India, MF industry manages nearly 700 schemes while US
MF industry has more than 12,000 MF schemes.
The public sector share in current MF industry size will go up from nearly 20% from less
than 10% now and that of joint sector to about 10% from 8% now The emerging trends in the
MF would be that the Commodity funds will invest in commodities such as metals, food
grains, and crude oil, commodity companies, or commodity futures contracts.
Likewise, Real estate funds will invest in real estate directly. As the competition in the Indian
MF industry will further intensify and go forward. Fund managers will, therefore, need to
deliver products that are relevant to investors. As the Indian markets and investors mature,
financial advice, product diversification, and multi-distribution channels will become critical
for long-term success.
Increasing investor awareness will help propel growth for the Indian MF industry. Investors
need to be however warned against the common fallacy of comparing returns of debt-oriented
fixed-income MFs and fixed-income products of small savings schemes without considering
the attendant risks.
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There is a need for Indian MFs to come out with innovative products that cater to the ever
changing customer requirements. In US, MFs provide products that cater to the entire life
cycle of the investor. Diversified products will keep the present momentum going for the
industry in a more competitive and efficient manner.
Source: KPMG Annual Report 2014; showing the Indian mutual fund industry
1.3AIMS AND OBJECTIVE OF THE RESEARCH

1. To get an overview of the mutual fund industry in India.
2. To understand how mutual funds have changed the way Indians invest by
comparing them with the stock index.
3. Mutual funds vs. other investment avenues.
4. As I am instructed from the internship being undertaken by me.
2. LITERATURE REVIEW
2.1 BREIF HISTORY ON MUTUAL FUNDS IN INDIA
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[2]
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 of India. The history of mutual
funds in India can be broadly divided into four distinct phases.
First Phase - 1964-1987
Unit Trust of India (UTI) was established in 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 had Rs.6700 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 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 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 Rs47004
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 investors a wider choice of fund families. Also, 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. 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.121805
crores. The Unit Trust of India with Rs.44541 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 of
India with assets under management of Rs. 29,835 crores as at the end of January 2003,
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representing broadly, the assets of US 64 scheme, assured return 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, 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 of a UTI Mutual Fund, conforming to the SEBI Mutual
Fund Regulations, and with recent mergers taking place among different private sector funds,
the mutual fund industry has entered its current phase of consolidation and growth.
Source: moneycontrol.com
2.2 ADVANTAGES OF MUTUAL FUNDS

Mutual fund investments in stocks, bonds and other instruments require considerable
expertise and constant supervision, to allow an investor to take the right decisions. Small
investors usually do not have the necessary expertise and time to undertake any study that can
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facilitate informed decisions. While this is the predominant reason for the popularity of
mutual funds, there are many other benefits that make mutual funds appealing.
Diversification Benefits:
Diversified investment improves the risk return profile of the portfolio. Optimal
diversification has limitations due to low liquidity among small investors. The large corpus of
a mutual fund as compared to individual investments makes optimal diversification possible.
Due to the pooling of capital, individual investors can derive benefits of diversification.
Low Transaction Costs:
Mutual fund transactions are generally very large. These large volumes attract lower
brokerage commissions and other costs as compared to smaller volumes of the transactions
that individual investors enter into. The brokers quote a lower rate of commission due to two
reasons. The first is competition for the institutional investors business. The second reason is
that the overhead cost of executing a trade does not differ much for large and small orders.
Hence for a large order these costs spread over a large volume enabling the broker to quote a
lower commission rate.
Availability of Various Schemes:
There are four basic types of mutual funds: equity, bond, hybrid and money market. Equity
funds concentrate their investments in stocks. Similarly bond funds primarily invest in bonds
and other securities. Equity, bond and hybrid funds are called long-term funds. Money market
funds are referred to as short-term funds because they invest in securities that generally
mature in about one year or less. Mutual funds generally offer a number of schemes to suit
the requirement of the investors.
Professional Management:
Management of a portfolio involves continuous monitoring of various securities and

innumerable economic variables that may affect a portfolio's performance. This requires a lot
of time and effort on part of the investors along with in-depth knowledge of the functioning
of the financial markets. Mutual funds are managed by fund managers generally with
knowledge and experience whose time is solely devoted to tracking and updating the
portfolio. Thus investment in a mutual fund not only saves time and effort for the investor but
is also likely to produce better results.
Liquidity:
Liquidating a portfolio is not always easy. There may not be a liquid market for all securities
held. In case only a part of the portfolio is required to be liquidated, it may not be possible to
see all the securities forming a part of the portfolio in the same proportion as they are
represented in the portfolio; investing in mutual funds can solve these problems. A fund
house generally stands ready to buy and sell its units on a regular basis. Thus it is easier to
liquidate holdings in a Mutual Fund as compared to direct investment in securities.
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Returns:
In India dividend received by investors is tax-free. This enhances the yield on mutual funds
marginally as compared to income from other investment options. Also in case of long-term
capital gains, the investor benefits from indexation and lower capital gain tax.
Flexibility:
Features of a MF scheme such as regular investment plan, regular withdrawal plans and
dividend reinvestment plan allows investors to systematically invest or withdraw funds
according to the needs and convenience.
Well Regulated:
All mutual funds are registered with SEBI and they function within the provisions of strict
regulations designed to protect the interest of investors. The SEBI regularly monitors the
operations of an AMC.
2.3 STRUCTURE OF MUTUAL FUNDS IN INDIA

In India, the mutual fund industry is highly regulated with a view to imparting operational
transparency and protecting the investor's interest. The structure of a mutual fund is
determined by SEBI regulations. These regulations require a fund to be established in the
form of a trust under the Indian Trust Act, 1882. A mutual fund is typically externally
managed. It is now an operating company with employees in the traditional sense.
Instead, a fund relies upon third parties that are either affiliated organizations or independent
contractors to carry out its business activities such as investing in securities. A mutual fund
operates through a four-tier structure. The four parties that are required to be involved are a
sponsor, Board of Trustees, an asset management company and a custodian.
Sponsor:
A sponsor is a body corporate who establishes a mutual fund. It may be one person acting
alone or together with another corporate body. Additionally, the sponsor is expected to
contribute at least 40% to the net worth of the AMC. However, if any person holds 40% or
more of the net worth of an AMC, he shall be deemed to be a sponsor and will be required to
fulfil the eligibility criteria specified in the mutual fund regulation.
Board of Trustees:
A mutual fund house must have an independent Board of Trustees, where two-thirds of the
trustees are independent persons who are not associated with the sponsor in any manner. The
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Board of Trustees of the trustee company holds the property of the mutual fund in trust for
the benefit of the unit-holders. They are responsible for protecting the unit-holder's interest.
Asset Management Company:
The role of an AMC is highly significant in the mutual fund operation. They are the fund
managers i.e. they invest investors' money in various securities (equity, debt and money
market instruments) after proper research of market conditions and the financial performance
of individual companies and specific securities in the effort to meet or beat average market
return and analysis. They also look after the administrative functions of a mutual fund for
which they charge management fee.
Custodian:
The mutual fund is required by law to protect their portfolio securities by placing them with a
custodian. Nearly all mutual funds use qualified bank custodians. Only a registered custodian
under the SEBI regulation can act as a custodian to a mutual fund.
Over the years, with the involvement of the RBI and SEBI, the mutual fund industry has
evolved in a big way giving investors an opportunity to make the most of this investment
avenue. With a proper structure in place, the industry has been able to cater to more number
of investors. With the increase in awareness about mutual funds several new players have
joined the bandwagon.
2.4 CLASSIFICATION OF MUTUAL FUNDS

Schemes According to Maturity Period:
[1]
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 which are declared
on a daily basis. The key feature 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 issue and thereafter they
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can buy or sell the units of the scheme on the stock exchanges 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.
SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor
i.e. either repurchase facility or through listing on stock exchanges. These mutual funds
schemes disclose NAV generally on weekly basis.
Schemes According to Investment Objective:
A scheme can also be classified as growth scheme, income scheme, or balanced scheme
considering its investment objective. Such schemes may be open-ended or close-ended
schemes as described earlier. Such schemes may be classified mainly as follows:
Growth / Equity Oriented Scheme
The aim of growth funds is to provide capital appreciation over the medium to long- term.
Such schemes normally invest a major part of their corpus in equities. Such funds have
comparatively high risks. These schemes provide different options to the investors like
dividend option, capital appreciation, etc. and the investors may choose an option depending
on their preferences. The investors must indicate the option in the application form. The
mutual funds also allow the investors to change the options at a later date. Growth schemes
are good for investors having a long-term outlook seeking appreciation over a period of time.
Income / Debt Oriented Scheme
The aim of income funds is to provide regular and steady income to investors. Such schemes
generally invest in fixed income securities such as bonds, corporate debentures, Government
securities and money market instruments. Such funds are less risky compared to equity
schemes. These funds are not affected because of fluctuations in equity markets. However,
opportunities of capital appreciation are also limited in such funds. The NAVs of such funds
are affected because of change in interest rates in the country. If the interest rates
fall, NAVs of such funds are likely to increase in the short run and vice versa. However, long
term investors may not bother about these fluctuations.
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. 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

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These funds are also income funds and their aim is to provide easy liquidity, preservation of
capital and moderate income. These schemes invest exclusively in safer short-term
instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank
call money, government securities, etc. Returns on these schemes fluctuate much less
compared to other funds. These funds are appropriate for corporate and individual investors
as a means to park their surplus funds for short periods.
Gilt Fund
These funds invest exclusively in government securities. Government securities have no

default risk. NAVs of these schemes also fluctuate due to change in interest rates and other
economic factors as is the case with income or debt oriented schemes.
Index Funds
Index Funds 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 or 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. Necessary disclosures in this
regard are made in the offer document of the mutual fund scheme.
There are also exchange traded index funds launched by the mutual funds which are traded
on the stock exchanges.
Other Mutual Fund Schemes:
Tax Savings Scheme
These schemes offer tax rebates to the investors under specific provisions of the Income Tax
Act, 1961 as the Government offers tax incentives for investment in specified avenues.
Equity Linked Savings Schemes (ELSS). Pension schemes launched by the mutual funds also
offer tax benefits. These schemes are growth oriented and invest pre-dominantly in equities.
Their growth opportunities and risks associated are like any equity-oriented scheme.
Fund Of Funds Scheme (FoF)
A scheme that invests primarily in other schemes of the same mutual fund or other mutual
funds is known as a FoF scheme. A FoF scheme enables the investors to achieve greater
diversification through one scheme. It spreads risks across a greater universe.
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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. Suppose the NAV per unit is Rs.10. If the entry
as well as exit load charged is 1%, then the investors who buy would be required to pay
Rs.10.10 and those who offer their units for repurchase to the mutual fund will get only
Rs.9.90 per unit. The investors should take the loads into consideration while making
investment as these affect their yields/returns. However, the investors should also consider
the performance track record and service standards of the mutual fund which are more
important. Efficient funds may give higher returns in spite of loads.
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.
2.5 JOURNAL REVIEWS

Different people have different ways of interpreting ideas in their daily life. While going
through the journals and research papers on mutual fund markets different people had
different objectives while doing their term paper on a topic common to all.
[6]
A STUDY ON INVESTORS ATTITUDE TOWARDS MUTUAL FUNDS AS AN

INVESTMENT OPTION
Dr. Binod Kumar Singh, faculty member of Amity Global Business School, Patna study on
investors attitude towards mutual funds as an investment option. Basically his paper focuses
on structure of mutual fund i.e. parties included in mutual funds, operations of mutual funds
and comparison between investment in bank and mutual fund. Singh has shown how mutual
fund is operated i.e. processes involved in mutual fund investment. Investor pool in their
money with fund manager invest in securities generates return and their return is passed back
to investor after deduction of certain fee. Singh has also shown the comparison between
investment in bank and mutual funds under certain factors like return, administrative
expenses, risk etc. Singh has also discussed about NAV (Net Asset Value) and calculation of
NAV. For measuring various phenomena and analysing the collected data effectively and
efficiently for drawing sound conclusions, Chi-square test has been used and for analysing
the various factors responsible for investment in mutual funds, ranking was done on the basis
of weighted scores and scoring was also done on the basis of scale.
[7]
PREFERENCE OF INVESTORS FOR INDIAN MUTUAL FUNDS AND ITS

PERFORMANCE EVALUATION
Dr. Shantanu Mehta analysed on the preference of investors for the mutual funds and also did
performance evaluation. The objective was to study the preference of investors and their
needs regarding mutual fund investment, what factors that influence most while buying
mutual funds. Evaluation of the performance of mutual funds schemes was done on the basis
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of their return parameters. Mutual funds have opened new vistas to millions of small
investors by virtually taking investment to their doorstep. In India, a small investor generally
goes for such kind of information, which do not provide hedge against inflation and often
have negative real returns. Thus the success of MFs is essentially the result of the combined
efforts of competent fund managers and alert investors. A competent fund manager should
analyse investor behaviour and understand their needs and expectations, to gear up the
performance to meet investor requirements. Therefore, in this current scenario it is very
important to identify needs of mutual funds investors, their preference for mutual funds
schemes and its performance evaluation. In this research paper, researcher has an objective to
know preference of mutual funds investors and performance evaluation of the preferred
schemes by the investors. The survey is undertaken of 100 educated investors of Ahmedabad
and Baroda city and the major findings reveal the major factors that influence buying
behaviour mutual funds investors, sources that investor rely more while making investment
and preferable mode to invest in mutual funds market.
[8]
A STUDY OF OPPORTUNITIES AND CHALLENGES FOR MUTUAL FUND IN

INDIA: VISION 2020
Sarish studies the opportunities and challenges for mutual fund in India with a vision of 2020.
Mutual Funds are one of the fastest growing sectors in Indian economy and have a high
potential for sustainable growth in the future. Mutual Funds help an investor by making
investment and savings option easier, affordable and accessible. Mutual funds include highly
professional management, diversification, variety, liquidity and strict government regulation
and full disclosure. Mutual funds were originated in UK and thereafter they crossed the
borders to reach other destinations. Since its beginning in 1964 there were only 25 crore
assets under management but now at the end of 2011 it has increased up to a giant figure of
700538cr.
Basically the paper focuses on mutual funds, its benefits and the drawbacks of mutual funds.
It aims at exploring the potential of mutual funds in India with the existing problems,
complexities and variables and ways of meeting the challenges for mutual funds tandem with
its potential of economic growth. Secondary Data is used to analyse and identify the
opportunities and challenges for mutual funds.
[9]
ANALYSIS OF EQUITY BASED MUTUAL FUNDS IN INDIA
Sahil Jain, Department of Mathematics, Indian Institute of Technology Roorkee has done
analysis on analysis of equity based mutual funds in India. The last decade showed a
tremendous growth in mutual fund industry. As per the latest data the asset under
management in this industry is more than 6.8 thousand billion. There are more than thousand
mutual fund schemes which promise better returns than others. This paper has made an
20 | P a g e
attempt to analyse the performance of equity based mutual schemes. The paper studies about
45 schemes offered by 2 private and 2 public sector companies have been studied over a
period of April 1997 to April 2012 (15years). Analysis has been made on the basis of risk
return relationship and Capital Asset Pricing Model (CAPM).
The paper concludes by analysing that ICICI and HDFC were the best performers while UTI
being average performer LIC being the worst performer.
[10]
PERFORMANCE EVALUATION OF EQUITY MUTUAL FUNDS (ON SELECTED

EQUITY LARGE CAP FUNDS)
Dr. R. Narayanasamy and V. Rathnamani have done performance evaluation of equity mutual
funds. India capital market provides various investment avenues to the investors, to help them
to invest in various industries and to ensure the profitable return. Among various financial
products, mutual fund ensures the minimum risks and maximum return to the investors,
Growth and developments of various mutual funds products in the Indian capital market has
proved to be one of the most catalytic instruments in generating momentous investment
growth in the capital market. In this context, close monitoring and evaluation of mutual funds
has become essential. Therefore, choosing profitable mutual funds for investment is a very
important issue. This study, basically, deals with the equity mutual funds that are offered for
investment by the various fund houses in India, This study mainly focused on the
performance of selected equity large cap mutual fund schemes in terms of risk- return
relationship. The main objective of this research work is to analysis financial performance of
selected mutual fund schemes through the statistical parameters such as (alpha, beta, standard
deviation, r-squared, Sharpe ratio). The findings of this research study will be help full to
investors for his future investment decisions.
[11]
AN ANALYSIS OF INVESTORS RISK PERCEPTION TOWARDS MUTUAL

FUNDS SERVICES
Nidhi Walia and Dr. Mrs. Ravi Kiran presents a study endeavoured to give a look on
investors perceptions towards risk-return trade off for mutual fund services. Understanding
of investors expectations from mutual funds has become necessary issue to study due to
mutual funds inability to accelerate the required pace of growth. Moreover, volatility
influencing stock market movements is turning most of investors to hold stocks with
calculated risk, in the shape of mutual funds. Thus mutual funds can prove to be most
preferred financial avenue provided it is put forth before investors in the desired form.
Financial markets are constantly becoming more efficient by providing more promising
solutions to the investors. Being a part of financial markets although mutual funds industry is
responding very fast by understanding the dynamics of investors perception towards
rewards, still they are continuously following this race in their endeavour to differentiate their
products responding to sudden changes in the economy. Thus, it is high time to understand
and analyze investors perception and expectations, and unveil some extremely valuable
information to support financial decision making of mutual funds. Financial markets are
becoming more exhaustive with financial products seeking new innovations and to some
extent innovations are also visible in designing mutual funds portfolio but these changes need
21 | P a g e
alignment in accordance with investors expectations. Thus, it has become imperative to

study mutual funds from a different angle, i.e., to focus on investors expectations and
uncover the unidentified parameters that account for their dissatisfaction. Present research
proposes to identify critical gaps in the existing framework for mutual funds and further
extend it to understand realizing the need of redesigning existing mutual fund services by
acknowledging Investor Oriented Service Quality Arrangements (IOSQA) in order to
comprehend investors behaviour while introducing any financial innovations.
[12]
INDIAN MUTUAL FUND INDUSTRY: OPPORTUNITIES AND CHALLENGES
Kale and Panchapagesan article presents an overview of the mutual fund industry in India and
the reasons for its poor penetration, which includes lack of objective research. It benchmarks
the industry globally, and raises key issues regarding the ownership and performance of
mutual funds, the sensitivity of fund flows to performance, and the importance of regulation
to its growth, all of which have been largely under researched in India. It then captures the
views of leading practitioners on these and other issues, including the challenges posed by
poor financial literacy, the equity culture in the country, and the weakly supportive regulatory
environment.
[13]
MUTUAL FUND INDUSTRY IN INDIA: AN OVERVIEW
Deepti Goel and Richa Gupta did a study to analyze how fund houses adapt themselves to
changes in regulations thereby shaping growth for the future. The landscape of the financial
sector in India is continuously evolving, accredited to regulatory changes being undertaken,
which is leading market participant like the asset management companies (AMCs) and
distributors to restructure their strategies and adopt business models which will yield
sustainable benefits. The whole paper is divided into five sections. In the first part we have
discussed the conceptual framework of mutual fund. In the next section, we have focused on
the growth of mutual fund industry in India. In the third section, we have analysed the trends
in the mutual fund industry. Then, we have discussed the challenges of mutual fund industry
and finally, the way ahead for mutual fund industry in India.
3. COMPANY PROFILE
3.1 HDFC ASEET MANAGEMENT COMPANY LIMITED
[14]
HDFC Asset Management Company Ltd (AMC) was incorporated under the Companies
Act, 1956, on December 10, 1999, and was approved to act as an Asset Management
Company for the HDFC Mutual Fund by SEBI vide its letter dated July 3, 2000.
22 | P a g e
The registered office of the AMC is situated at HUL House, 2nd Floor, H. T. Parekh Marg,
165-166, Backbay Reclamation, Churchgate, Mumbai - 400 020. The Company Identification
Number (CIN) is U65991MH1999PLC123027.
In terms of the Investment Management Agreement, the Trustee has appointed the HDFC
Asset Management Company Limited to manage the Mutual Fund. The paid up capital of the
AMC is Rs. 25.241 crore as on March 31, 2015.
3.2 PRODUCTS OFFERED BY HDFC AMC

HDFC AMC deals in equity, debt, balanced as well as some special asset class funds. Many
schemes are present under every category. Here is the brief introduction about some of these
schemes.
1) HDFC Growth Fund is an open-ended growth scheme managed under the expert
fund management skills of Srinivas Rao Ravuri. The investment objective of this
fund is to generate long-term capital appreciation from a portfolio that is invested
predominantly in equity and equity related instruments. This fund has been rolling
since 11th September of 2000. This fund has its majority holdings in equity and
equity related instruments and a certain percentage is maintained in cash and cash
equivalents (0-20%). The benchmark index for this fund is S&P BSE SENSEX.
The total AUM & total live accounts under this fund (as on 31/3/15) are
1166.15crores (Unaudited) and 103,085 units respectively.
2) HDFC EQUITY Fund (HEF) is an open-ended growth scheme managed under

the expert fund management skills of Prashant Jain. The investment objective of
this fund is to generate long-term capital appreciation. This fund has been rolling
since 1st January of 1996. This fund has its majority holdings in equity and equity
related instruments including equity derivatives and a certain percentage are
maintained in cash and cash equivalents (0-20%). The benchmark index for this
fund is CNX 500. The total AUM & total live accounts under this fund (as on
31/3/15) are 16246.66 crores (unaudited) and 637,430 units respectively.
3) HDFC TOP 200 FUND (HT200) is an open-ended growth scheme managed under
the expert fund management skills of Prashant Jain. The investment objective of
this fund is to generate long-term capital appreciation. This fund has been rolling
since 11th October of 1996. This fund has its majority holdings in equity and
equity related instruments. The investment portfolio for equity and equity linked
instruments will be primarily drawn from companies of BSE Top 200 Index
Further the scheme may also invest in listed companies that would qualify to be in
top 200 by market capitalization on the BSE even though they may not be listed
on the BSE. This includes participation in large IPOs where in the market
23 | P a g e
capitalization of the company based on issue price would make the company a
part of top 200 companies listed on the BSE based on market capitalization. The
fund has its majority holdings in equity and equity related schemes and a certain
percentage is maintained in cash and cash equivalents (which was 1.29% in
January 2015) .The benchmark index for this fund is S&P BSE 200. The total
AUM & total live accounts under this fund (as on 31/3/15) are 12950.44 crores
(unaudited) and 1,044,332 units respectively.
4) HDFC CAPITAL BUILDER PLAN (HCBF) is an open-ended growth scheme

managed under the expert fund management skills of Chirag Setalvad. The
investment objective of this fund is to generate long-term capital appreciation.
This fund has been rolling since 1st February of 1994. This fund has its majority
holdings in equity and equity related instruments by investing in companies whose
shares are quoting at prices below their value. A certain percentage is maintained
in cash and fixed income securities (0-20% max). The benchmark index for this
fund is CNX 500. The total AUM & total live accounts under this fund (as on
31/3/15) are 641.62 crores (unaudited) and 73875 units respectively.
5) HDFC CORE & SATELLITE FUND (HCSF) is an open-ended growth scheme

managed under the expert fund management skills of Vinay Kulkarni. The
investment objective of this fund is to generate long-term capital appreciation.
This fund has been rolling since 17th September of 2004. This fund has its
majority holdings in equity and equity related instruments and a certain
percentage is maintained in fixed income securities (5-10%). The benchmark
index for this fund is S&P BSE 200. The total AUM & total live accounts under
this fund (as on 31/3/15) are 285.39crores (Unaudited) and 34,300 units
respectively.
6) HDFC PREMIER MULTI-CAP FUND (HPMCF) is an open-ended growth

scheme managed under the expert fund management skills of Vinay Kulkarni.
The investment objective of this fund is to generate long-term capital appreciation
from a portfolio that is invested predominantly in diversified portfolio of mid cap
and small cap Blue Chip companies. This fund has been rolling since 6th April
2005. This fund has its majority holdings in equity and equity related instruments
and a certain percentage is maintained in cash and cash equivalents (0-20%). The
benchmark index for this fund is CNX 500. The total AUM & total live accounts
under this fund (as on 31/3/15) are 336.02 crores (Unaudited) and 50,680 units
respectively.
24 | P a g e
7) HDFC LARGE CAP FUND (HlCF) is an open-ended growth scheme managed

under the expert fund management skills of Vinay Kulkarni. The investment
objective of this fund is to generate long-term capital appreciation by investing in
large cap companies. This fund has been rolling since 18th February of 1994. This
fund has its majority holdings in equity and equity related instruments of large cap
companies and a certain percentage is maintained in debt and money market
instruments (0-20%). The benchmark index for this fund is CNX NIFTY INDEX.
The total AUM & total live accounts under this fund (as on 31/3/15) are
1238.45crores (Unaudited) and 342,305 units respectively.
8) HDFC MIDCAP OPPERTUNITIES (HMCOF) is an open-ended growth scheme

investment objective of this fund is to generate long-term capital appreciation by
investing in equity and equity related instruments of small & mid cap companies.
This fund has been rolling since 25th June of 2007. This fund has its majority
holdings in equity and equity related instruments of large cap companies and a
certain percentage is maintained in debt and money market instruments (0-25%
max). The benchmark index for this fund is CNX Midcap. The total AUM & total
live accounts under this fund (as on 31/3/15) are 7470.54 crores (Unaudited) and
492,402 units respectively
9) HDFC SMALL & MID CAP FUND (HSMF) is an open-ended growth scheme
investing in small & mid cap companies. This fund has been rolling since 3rd
April of 2008. This fund has its majority holdings in equity and equity related
instruments of mid & small cap companies and a certain percentage is maintained
in debt and money market instruments (0-25%). The benchmark index for this
fund is CNX Small Cap INDEX. The total AUM & total live accounts under this
fund (as on 31/3/15) are 515.84crores (Unaudited) and 23,535 units respectively.
10) HDFC INFRASTRUCTURE FUND (HINFR) is an open-ended equity scheme

managed under the expert fund management skills of Prashant Jain. The
investing equity & equity related securities of companies engaged in or expected
25 | P a g e
to benefit from growth & development of infrastructure. This fund has been
rolling since 10th March of 2008. This fund has its majority holdings in equity
and equity related instruments and a certain percentage is maintained in debt and
money market instruments & fixed income derivatives (0-35%). The benchmark
index for this fund is CNX 500. The total AUM & total live accounts under this
fund (as on 31/3/15) are 1717.77crores (Unaudited) and 144,798 units
respectively.
11) HDFC LONG TERM ADVANTAGE FUND (HFTAL) is an open-ended equity

linked savings scheme managed by fund manager Mr. Chirag Setalvad and Mr.
Rakesh Vyas (for Oversees Instruments). Its objective is to generate a long-term
capital appreciation. It is a Tax Saver Plan. It was introduced on January 2, 2001.
The benchmark index is S&P BSE SENSEX. The AUM and Live Accounts as on
March 31, 2015 are Rs.1135.86cr (Unaudited) and 177,918 respectively.
12) HDFC TAX SAVER (HTS) is an open-ended linked savings scheme managed by
fund manager Vinay Kulkarni. Its objective is to achieve a long-term capital
growth. It is a Tax Saver Plan. It was introduced on March 31, 1996. The
benchmark index is CNX 500. The AUM and Live Accounts as on March 31,
2015 are Rs.4680.08cr (Unaudited) and 688,497 respectively.
13) HDFC INDEX FUND (HIF) is an open-ended scheme. There are 3 types of Index
Fund- The SENSEX Plan, NIFTY Plan and the SENSEX Plus Plan. The fund
manager is Vinay Kulkarni. The benchmark index for SENSEX Plan and
SENSEX Plus Plan is S&P BSE SENSEX, for NIFTY Plan is CNX NIFTY. The
AUM for SENSEX Plan, NIFTY Plan and SENSEX Plus Plan are Rs.72.16cr,
Rs.86.11cr and Rs.115.68cr respectively. The Live accounts for the 3 plans are
3240, 3887 and 5,954 respectively.
14) HDFC INFLATION INDEXED BOND FUND (HIIBF) is an open ended scheme
and has two plans direct and regular. Objective of this fund is to generate income
and capital appreciation indexed to inflation by investing in a portfolio of inflation
indexed bonds. The fund manager is Mr. Anil Bamboli. It was introduced on 4th
March, 2013.
26 | P a g e
15) HDFC BANKING AND PSU DEBT FUND (HBPDF) is an open ended scheme
to generate regular income through investments in debt and money market
instruments consisting predominantly of securities issued by entities such as
Scheduled Commercial Banks and Public Sector undertakings. There is no
assurance that the investment objective of the Scheme will be realized. The fund
manager is Mr. Rakesh Vyas. Its inception date was 25th March 2014.
16) HDFC CORPORATE DEBT OPPORTUNITIES FUND (HCDOF) is an open

ended income scheme. Objective of this scheme is to generate regular income and
capital appreciation by investing predominantly in corporate debt. This scheme
also offers regular and direct plan. Fund managers of this scheme are Mr. Shobhit
Mehrotra and Mr. Rakesh Vyas. This scheme was introduced on 25th March 2014.
17) HDFC MEDIUM TERM OPPORTUNITIES FUND (HMTOF) is an open ended

income scheme to generate regular income through investments in Debt/Money
Market Instruments and Government Securities with maturities not exceeding 60
months. This scheme has dividend and growth option. Fund managers are Mr.
Shobhit Mehrotra and Rakesh Vyas. Inception date of this scheme was on 29th
June 2010.
18) HDFC SHORT TERM OPPORTUNITIES FUND (HSTOF) is an open ended

scheme. Objective of this scheme is to generate regular income through
investments in Debt/Money Market Instruments and Government Securities with
maturities not exceeding 30 months. Fund managers of this scheme are Mr. Anil
Bamboli and Mr. Rakesh Vyas. This scheme was introduced on 25th June 2010.
19) HDFC FLOATING RATE INCOME FUND-LONG TERM PLAN (HFRIF) is an

open ended scheme to generate regular income through investment in a portfolio
comprising substantially of floating rate debt / money market instruments, fixed
rate debt / money market instruments swapped for floating rate returns, and fixed
rate debt securities and money market instruments. Existing plans of this scheme
are dividend plan and growth plan. Fund managers are Mr. Shobhit Mehrotra and
Mr. Rakesh Vyas. Inception date of this scheme was 16th January 2003.
27 | P a g e
20) HDFC GILT FUND-LONG TERM PLAN (HGF) is an open ended income
scheme. Objective of this scheme is to generate credit risk-free returns through
investments in sovereign securities issued by the Central Government and/or State
Government. Dividend option and growth options are two plans of this scheme.
Fund manager is Mr. Anil Bamboli. This scheme was introduced on 25th July
2001.
21) HDFC HIGH INTEREST FUND- SHORT TERM PLAN (HHIF) is an open
ended scheme. Its existing plans are growth option and fortnightly dividend
option. Dividend option offers payout and reinvestment opportunity. The objective
of HDFC High Interest Fund - Short Term Plan is to generate income by investing
in a range of debt and money market instruments of various maturity dates with a
view to maximising income while maintaining the optimum balance of yield,
safety and liquidity. Fund managers of this scheme are Mr. Shobhit Mehrotra and
Mr. Rakesh Vyas. Inception date of this scheme was 6th February 2002.
22) HDFC HIGH INTEREST FUND- DYNAMIC PLAN (HHIF) is an open ended
income scheme. The objective of HDFC High Interest Fund - Dynamic Plan is to
generate income by investing in a range of debt and money market instruments of
various maturity dates with a view to maximising income while maintaining the
optimum balance of yield, safety and liquidity. Fund managers of this scheme are
Mr. Anil Bamboli and Mr. Rakesh Vyas. This scheme was introduced on 28th April
1997.
23) HDFC MULTIPLE YIELD FUND-PLAN 2005 is an open ended income scheme
to generate positive returns over medium time frame with low risk of capital loss
over medium time frame. Fund manager of this schemes are Mr. Anil Bamboli,
Mr. Chirag Setalvad, Mr. Rakesh Vyas. This fund was introduced on 17th August
2005.
24) HDFC MF MONTHLY INCOME PLAN- LONG TERM PLAN is an open ended
income scheme. Its objective is to generate regular returns through investment
primarily in Debt and Money Market Instruments. The secondary objective of the
Scheme is to generate long-term capital appreciation by investing a portion of the
28 | P a g e
Scheme`s assets in equity and equity related instruments. However, there can be
no assurance that the investment objective of the Scheme will be achieved. Fund
managers are Mr. Prashant Jain, Mr. Rakesh Vyas, and Mr. Shobhit Mehrotra.
Inception date of this fund was 26th December 2003.
25) HDFC CASH MANAGEMENT FUND-TREASURY ADVANTAGE FUND is an

open ended income scheme. Its objective is to generate regular income through
investment in debt securities and money market instruments. Fund managers are
Mr. Anil Bamboli and Mr. Rakesh Vyas. This fund was introduced on 18th
November 1999.
26) HDFC FLOATING RATE INCOME FUND-SHORT TERM PLAN is an open

ended income scheme. Its objective is to generate rregular income through
investment in a portfolio comprising substantially of floating rate debt / money
market instruments, fixed rate debt / money market instruments swapped for
floating rate returns and fixed rate debt securities and money market instruments.
Inception date of this scheme was 16th January 2003. Fund managers of this
scheme are Mr. Shobhit Mehrotra and Mr. Rakesh Vyas.
27) HDFC GILT FUND-SHORT TERM PLAN is an open ended scheme to generate
credit risk-free returns through investments in sovereign securities issued by the
Central Government and/or a State Government. This fund was introduced on 25th
July 2001 and fund manager is Mr. Anil Bamboli.
28) HDFC SHORT TERM PLAN is an open ended income scheme whose objective is
to generate regular income through investment in debt securities and money
market instrument. Inception date of this scheme was 28th February 2002. Fund
managers are Mr. Anil Bamboli and Mr. Rakesh Vyas.
29) HDFC INCOME FUND is an open ended income scheme. Its inception date was
11th September 2000. Objective of this scheme is to optimise returns while
maintaining a balance of safety, yield and liquidity. Fund managers are Mr.
Shobhit Mehrotra and Mr. Rakesh Vyas.
29 | P a g e
30) HDFC MULTIPLE YIELD FUND is an open ended income fund. This scheme
has dividend and growth option. Its objective is to generate positive returns over
medium time frame with low risk of capital loss over medium time frame.
Inception date was 17th September 2004. Fund manager of this scheme are Mr.
Rakesh Vyas, Mr. Vinay R. Kulkarni and Mr. Anil Bamboli.
31) HDFC MF MONTHLY INCOME PLAN- SHORT TERM PLAN is an open

ended income fund. The objective of this scheme is to generate regular returns
through investment primarily in Debt and Money Market Instruments. The
secondary objective of the Scheme is to generate long-term capital appreciation by
investing a portion of the Scheme's assets in equity and equity related instruments.
However, there can be no assurance that the investment objective of the Scheme
will be achieved. Fund managers are Mr. Shobhit Mehrotra, Mr. Rakesh Vyas and
Mr. Vinay R. Kulkarni. Inception date was 26th December 2003.
32) HDFC ARBITRAGE FUND is an open ended equity fund. Its objective is to
generate income through arbitrage opportunities between cash and derivative
market and arbitrage opportunities within the derivative segment and by
deployment of surplus cash in debt securities and money market instruments.
Fund manager is Mr. Anil Bamboli. Inception date is 23rd October 2007.
33) HDFC GOLD EXCHANGE TRADED FUND is an open ended exchange traded
fund. The investment objective of the Scheme is to generate returns that are in line
with the performance of gold, subject to tracking errors. Fund manager is Mr. Anil
Bamboli. Inception date is 13th august 2010.
34) HDFC GOLD FUND is an open ended fund of fund scheme investing in hdfc gold
exchange traded fund. The investment objective of the Scheme is to seek capital
appreciation by investing in units of HDFC Gold Exchange Traded Fund. Fund
manager is Mr. Anil Bamboli. Inception date is 1st November 2011.
35) HDFC BALANCED FUND is an open ended balanced scheme. The primary
objective of the Scheme is to generate capital appreciation along with current
income from a combined portfolio of equity and equity related and debt and
money market instruments. Fund manager is Mr. Chirag Setalvad. Inception date
is 11th September 2000.
30 | P a g e
36) HDFC PRUDENCE FUND is an open ended balanced scheme. The investment
objective of the Scheme is to provide periodic returns and capital appreciation
over a long period of time, from a judicious mix of equity and debt investments,
with the aim to prevent/ minimise any capital erosion. Fund manager is Mr.
Prashant Jain. Inception date is 1st February 1994.
37) HDFC DYNAMIC PE RATIO FUND OF FUNDS is an open ended fund of fund
scheme. Its objective is to seek capital appreciation by managing the asset
allocation between specified equity and debt schemes of HDFC Mutual Fund.
Fund managers are Mr. Anil Bamboli and Mr. Miten Lathia. This fund was
introduced on 6th February 2012.
38) HDFC LIQUID FUND is an open ended liquid income scheme. The primary
objective of the Scheme is to enhance income consistent with a high level of
liquidity, through a judicious portfolio mix comprising money market and debt
instruments. Fund manager is Mr. Shobhit Mehrotra. Inception date is 17th October
2000.
39) HDFC CHILDREN GIFT FUND SAVINGS PLAN is an open ended balanced
scheme. The primary objective of the Scheme is to generate long term capital
appreciation. However, there can be no assurance that the investment objective of
the Scheme / Plans will be achieved. Fund manager is Mr. Chirag Setalvad.
Inception date is 2nd March 2001.
40) HDFC CHILDREN GIFT FUND-INVESTMENT PLAN is an open ended

balanced scheme. The primary objective of the Scheme is to generate long term
capital appreciation. However, there can be no assurance that the investment
objective of the Scheme / Plans will be achieved. Fund manager is Mr. Chirag
Setalvad. Inception date is 2nd March 2001.
4. RESEARCH METHODOLOGY
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[15]
According to Clifford Woody, research comprises defining and redefining problems,

formulating hypothesis or suggested solutions; collecting, organizing and evaluating data;
making deductions and reaching conclusion; and at last carefully testing the conclusions to
determine whether they fit the formulating hypothesis. Research methodology is a way to
systematically solve the research problem. It may be understood as a science of studying how
research is done scientifically. In it we study the various steps that are generally adopted by
researcher in studying his research problem along with the logic behind it.
This term paper uses no primary data. It uses secondary data has all the information is
collected from different journals, books, and websites only. All the data, journals, information
is being collected with the help of various sources and there is no use of primary information
viz. surveys, questionnaires etc. All the data analysis is been done with the help of tables,
charts.
5. DATA ANALYSIS AND INTERPRETATION

32 | P a g e
DATA ANALYSIS AND INTERPRETATION OF CORRELATION 1, GRAPH 1 AND

TABLE 1 (refer to annexure)
Launched in October 2005, Birla Sun Life Top 100 Fund is classified in the large caporiented equity category of the CRISIL Mutual Fund Ranking. The fund has been ranked in
the top 30 percentile (CRISIL Mutual Fund Rank 1) for 10 quarters since June 2011. The
schemes objective is to provide medium- to long-term capital appreciation by investing
predominantly in equity and equity-related instruments with minimum 65 per cent exposure
to top 100 companies as measured by the market capitalisation.
The table shows the relation between the returns of the mutual fund scheme (Birla Sun Life)
and Sensex monthly returns from 2012 to 2015. After analysing the returns of the scheme it
was seen that the year 2012-13 showed a positive and a higher return when compared with
Sensex returns of 2012-13. In 2013-14 there was more or less than 1.5 times returns from the
scheme when compared with sensex. Investors earned good and healthy returns in 2014-15
from the schemes as compared to the last year as because the returns were positive and huge
as compared to last year.
The Sharpe ratio is calculated by subtracting the risk-free rate - such as that of the 1 year RBI
Treasury Bill - from the rate of return for a portfolio and dividing the result by the standard
deviation of the portfolio returns. In this case the Sharpe ratio is -1.496432942. The greater a
portfolio's Sharpe ratio, the better its risk-adjusted performance has been. A negative Sharpe
ratio indicates that a risk-less asset would perform better than the security being analyzed.
A ratio developed by Jack Treynor that measures returns earned in excess of that which could
have been earned on a riskless investment per each unit of market risk. It is similar to the
Sharpe ratio, with the difference being that the Treynor ratio uses beta as the measurement of
volatility. In this case the Treynor ratio is -0.061372565.
A risk-adjusted performance measure that represents the average return on a portfolio over
and above that predicted by the capital asset pricing model (CAPM), given the portfolio's
beta and the average market return. This is the portfolio's alpha. In fact, the concept is
sometimes referred to as "Jensen's alpha." Jensen's measure is one of the ways to help
determine if a portfolio is earning the proper return for its level of risk. In this case the
Jensens alpha is 0.01123592. If the value is positive, then the portfolio is earning excess
returns. In other words, a positive value for Jensen's alpha means a fund manager has "beat
the market" with his or her stock picking skills.
The correlation coefficient (a value between -1 and +1) tells you how strongly two variables
are related to each other. The correlation coefficient between return of sensex and return from
mutual fund (Birla Sun Life Scheme) is 0.948868646 which shows a high positive
correlation.
Bar Graph shows the comparison of risk and return between the Sensex and Birla Sun Life
Top 100 Fund Scheme. The graph clearly depicts that mutual fund scheme has a higher return
as compared to Sensex. The returns are almost 1.5times when compared to Sensex. The risk
of the scheme is also more.
33 | P a g e

Launched in January 1993, UTI Top 100 Fund is classified in the large cap-oriented equity
category of the CRISIL Mutual Fund Ranking. The fund has been ranked in the top 30
percentile (CRISIL Mutual Fund Rank 2) for 10 quarters since June 2011.The fund aims to
provide long term capital appreciation/dividend distribution by investing predominantly in
equity and equity related instruments of top 100 stocks by market capitalization. There can be
no assurance that the investment objectives of the scheme will be realized.
The table shows the relation between the returns of the mutual fund scheme (UTI Top 100
Fund) and Sensex monthly returns from 2012 to 2015. After analysing the returns of the
scheme it was seen that the year 2012-13 showed a lower return when compared with Sensex
returns of 2012-13. In 2013-14 there was a more or less equal return from the scheme when
compared with sensex. Investors earned good and healthy returns in 2014-15 from the
schemes as compared to the last year as because the returns were positive and huge as
compared to last year.
mutual fund (UTI Top 100 Fund) is 0.934134751 which shows a high positive correlation.
Bar Graph shows the comparison of risk and return between the Sensex and UTI Top 100
Fund Scheme. The graph clearly depicts that mutual fund scheme has a higher return as
compared to Sensex. The risk of the scheme is half than that as compared with sensex.
34 | P a g e
Launched in August 1996, HDFC Top 200 Fund is classified in the large cap-oriented equity
category of the CRISIL Mutual Fund Ranking. The fund has been ranked in the top 30
percentile (CRISIL Mutual Fund Rank 3) for 10 quarters since June 2011. The scheme seeks
capital appreciation and would invest up to 90 per cent in equity and the remaining in debt
instruments. Also, the stocks would be drawn from the companies in the BSE 200 Index as
well as 200 largest capitalised companies in India.
The table shows the relation between the returns of the mutual fund scheme (HDFC Top 200
Fund) and Sensex monthly returns from 2012 to 2015. After analysing the returns of the
scheme it was seen that the year 2012-13 showed a lower return when compared with Sensex
returns of 2012-13. In 2013-14 there was a more or less equal return from the scheme when
compared with sensex. Investors earned good and healthy returns in 2014-15 from the
schemes as compared to the last year as because the returns were positive and huge as
compared to last year.
mutual fund (HDFC Top 100 Fund) is 0.92940426 which shows a high positive correlation.
Bar Graph shows the comparison of risk and return between the Sensex and HDFC Top 200
Fund Scheme. The graph clearly depicts that mutual fund scheme has a higher return as
compared to Sensex. The risk of the scheme is more as compared with sensex.
DATA ANALYSIS AND INTERPRETATION OF GRAPH 4 (refer to annexure)
35 | P a g e
Comparing all the schemes together with Sensex in regards with return and risk it can be well
noticed that HDFC Top 200 Fund has the highest return and risk associated with it which can
be used by and adverse risk taking investor. Birla Sun Life Top 100 Fund gives higher return
than sensex but is more risky. UTI Top 100 Fund give a return which is higher than that of
Birla Sun Life Top 100 Fund but less than that of HDFC Top 200 Fund and is less riskier than
Sensex so it is an ideal investment scheme as returns here are more and the risks are not that
high.
Source: moneycontrol.com
6. RESULTS AND CONCLUSION

36 | P a g e
6.1 RESULT AND FINDINGS

The present study reflects that, in most of the cases mean return of UTI Top 100 Fund (G)
mutual fund schemes is more than the mean return of other mutual fund schemes and Sensex
returns.
Largecap Schemes has shown healthy returns as compared to index schemes.

UTI Top 100 Fund Scheme (G) when compared with the benchmark Sensex showed a
return much higher than the benchmark.
Birla Sun Life Top 100 Fund Scheme (G) when compared with sensex showed a
return much higher than the benchmark but was more risky as when compared with
UTI Top 100 Fund.
HDFC Top 200 Fund (G) showed the highest return but was the most risky.
There is a positive and strong correlation between the return of Largecap schemes
with that of the returns from sensex.
It can be thus said that Crisil Ranked 2 mutual fund emerges as an ideal investment.
All Largecap schemes have negative Sharpe ratio which indicates that a risk-less asset
would perform better than the security being analyzed
All Largecap schemes have negative Treynor ratio implying that the fund
outperformed the risk-free rate by betting against the market.
All Largecap schemes have positive Jensens Alpha, a positive value for Jensen's alpha
means a fund manager has "beat the market" with his or her stock picking skills.
6.2 CONCLUSION
This paper was an attempt to evaluate the performance of mutual fund schemes ranked 1, 2
and 3 by CRISIL and compare the mean returns with the benchmark indices Sensex. The
performance of all the schemes seemed volatile during the study period, as such it was quite
difficult to earmark one particular scheme that out performed consistently well during the
period of study. The results obtained from the study HDFC Top 200 Fund scheme gave the
highest return during the period taken into account. It can also be concluded that UTI Top 100
Fund mutual fund schemes have the potential to provide greater returns in long term. The
investments in mutual funds is subject to market risk and the investment decision should be
taken carefully, as there is no guarantee of return and the past performance may or may not be
occurred in future.
6.3 LIMITATIONS
The project was made solely on the information gathered from secondary data due to
limited time and resource constraints. There was no use of any primary data in the form
of market surveys, research, etc.
Due to the word limit constraint, other case studies done previously on the topic could
not be mentioned in the research paper.
37 | P a g e
6.4 SCOPE FOR FURTHER RESEARCH

There is an ample of opportunity for upgrading the research for the appraisal of mutual fund
performances. The study is limited to 3 mutual fund schemes ranked by CRISIL. In the same
way the performance of all types of mutual fund schemes of different ranking could be
possible. Various performance evaluation models can also be applied for the evaluation of
mutual fund performances
7. BIBLIOGRAHY
38 | P a g e
WEB SITES:
1. http://www.sebi.gov.in/faq/mf_faq.html (Refer to page no 9 & page no 16 - 19)
2. http://www.moneycontrol.com/investor-education/classroom/knowhistorystructureadvantagesmutual-funds-724370.html (Refer to page no 9 & page no 12 16)
3. https://www.pwc.in/en_IN/in/assets/pdfs/publications/2014/pwc-cii-indian-mutualfund-industry-at-a-glance-2014.pdf (Refer to page no 10 - 11)
4. https://www.pwc.in/assets/pdfs/financial-service/Towards_2015.p (Refer to page no
10 - 11)
5. http://www.kpmg.com/IN/en/IssuesAndInsights/ArticlesPublications/Documents/Ind
ian-Mutual-Fund-Industry.pdf (Refer to page no 10 - 11)
14. http://www.hdfcfund.com/ (Refer to page no 23 - 30)
15. http://www.qsrinternational.com/what-is-qualitative-research.aspx (Refer to page no

31)
JOURNAL REVIEWS:
6. Singh, B.K., (2012). A Study on Investors Attitude towards Mutual Funds as an
Investment Option, International Journal of Research in Management, Vol. 2, Issue
2, pp.61-70. Retrieved from http://rspublication.com/ijrm/march%2012/6.pdf (Refer
to page no 19)
7. Mehta, S., (2012). Preference of Investors for Indian Mutual Funds and its
Performance Evaluation, Pacific Business Review International, Vol. 5, Issue 3, pp.
62-76. Retrieved from http://www.pbr.co.in/PDF%20Copy/6.pdf (Refer to page no
20)
8. Sarish, (2012). A Study of Opportunities and Challenges for Mutual Fund in India:
Vision 2020, VSRD International Journal of Business and Management Research,
Vol. 2, Issue 4, pp. 170-178. Retrieved from
http://www.vsrdjournals.com/MBA/Issue/2012_04_Apr/Web/5_Sarish_652_Researc
h_Communication_Apr_2012.pdf (Refer to page no 20)
9. Jain, S., (2012). Analysis of Equity Based Mutual Funds in India, IOSR Journal of
Business and Management, Vol. 2, Issue 1, pp.1-4. Retrieved from
http://www.iosrjournals.org/iosr-jbm/papers/vol2-issue1/A0210104.pdf
(Refer to page no 21)
39 | P a g e
10. Narayanasamy, R. And Rathnamani, V., (2013). Performance Evaluation of Equity

Mutual Funds (on Selected Equity Large Cap Funds), International Journal of
Business and Management Invention, Vol. 2, Issue 4, pp. 18-24. Retrieved from
http://www.ijbmi.org/papers/Vol(2)4/version-2/C241824.pdf (Refer to page no 21)
11. Walia, N., and Kiran, R., (2009). An Analysis of Investors Risk Perception towards
Mutual Funds Services, International Journal of business Management, Vol. 4,
Issue 5, pp. 106-120. Retrieved from
http://www.ccsenet.org/journal/index.php/ijbm/article/view/1762 (Refer to page no
21 - 22)
12. Kale, R.J. And Panchapagesan, V. (2012), Indian Mutual Fund Industry:
Opportunities and Challenges, IIMB Management Review, Vol. 24, Issue 4, pp. 245258. Retrieved from
http://www.sciencedirect.com/science/article/pii/S0970389612000420
13. Goel, D. And Gupta, R., (2014) Mutual Fund Industry in India: An Overview,
International Journal of Emerging Research in Management and Technology, Vol. 3,
Issue 5, pp. 168-171. Retrieved from
http://www.ermt.net/docs/papers/Volume_3/5_May2014/V3N5-212.pdf
8. ANNEXURE
CORRELATION 1: Showing relationship between return of Sensex and return of Birla
Sun Life Top 100 Funds
40 | P a g e
Return of
Sensex
Return of Sensex
Return of Birla
Sun Life
Return of Birla
Sun Life
1
0.948868646
GRAPH 1: Showing the difference between the risk and return of Sensex and Birla Sun
Life Top 100 Funds
Risk
0.05
0.04
0.04
0.04
0.04
0.04
0.04
0.04
0.04
0.04
Sensex
Birla Sun Life
Return
0.03
0.02
0.02
0.01
0.01
0
Sensex
Birla Sun Life
Source: authors work.
TABLE 1: Showing the expected return and risk associated with Sensex and Birla Sun
Life Top 100 Funds and Other Ratios
41 | P a g e
SENSEX
Month
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
Jan-13
Feb-13
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Return
0.0049062
87
0.0635309
24
0.0746954
26
0.0111187
74
0.0112194
23
0.0764895
96
0.0137165
47
0.0450960
75
0.0044886
48
0.0241044
42
0.0519447
62
0.0013662
72
0.0354862
05
0.0131315
44
0.0184455
7
0.0025835
48
0.0375266
86
0.0408196
26
0.0920934
Return-E
D*D
0.01890641
3
0.07753105
0.0003574
52
0.06069529
9
-0.0251189
0.0036839
19
0.0006309
59
0.00278070
3
0.06248946
9
0.02771667
3
0.03109594
8
0.00951147
9
0.01010431
5
0.06594488
8
0.01536639
9
0.02148607
9
0.00086858
2
0.03244569
7
0.01658367
4
0.05152681
2
0.02681949
9
0.07809333
7.73231E06
0.0060110
64
0.0039049
34
0.0007682
14
0.0009669
58
9.04682E05
0.0001020
97
0.0043487
28
0.0002361
26
0.0004616
52
7.54435E07
0.0010527
23
0.0002750
18
0.0026550
12
0.0007192
86
0.0060985
42 | P a g e
Nov-13
Dec-13
Jan-14
Feb-14
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15
SUM OF
RETURN
E
56
0.0176044
63
0.0182162
02
0.0310254
56
0.0295541
79
0.0599499
43
0.0014084
53
0.0802728
19
0.0494042
7
0.0189342
16
0.0286982
38
0.0002853
06
0.0463873
96
0.0297195
53
0.0416313
66
0.0612205
64
0.0061182
99
0.0478180
61
0.5040045
51
0.0140001
26
VARIANCE
RISK
0.03160458
9
0.00421607
6
0.04502558
2
0.01555405
3
0.04594981
7
0.01259167
4
0.06627269
3
0.03540414
3
0.00493409
0.01469811
1
0.01428543
2
0.03238726
9
0.01571942
6
0.05563149
2
0.04722043
8
0.00788182
8
0.06181818
7
68
0.0009988
5
1.77753E05
0.0020273
03
0.0002419
29
0.0021113
86
0.0001585
5
0.0043920
7
0.0012534
53
2.43452E05
0.0002160
34
0.0002040
74
0.0010489
35
0.0002471
0.0030948
63
0.0022297
7
6.21232E05
0.0038214
88
0.0015144
92
0.03891
Source: authors work, bseindia.com
43 | P a g e
BIRLA SUN LIFE TOP 100 FUNDS

Month
Apr-12
May-12
Jun-12
Jul-12
Return
Return-E
0.0036623
41
-0.0600835
0.02333048
0.0005443
11
0.07975163
8
0.05053271
1
0.01687106
2
0.01629401
6
0.07072328
8
0.03081168
9
0.03705175
5
0.00185712
5
0.00884337
7
0.08605533
4
0.02713813
6
0.02544804
5
0.02171441
6
0.04466813
9
0.03867647
0.0063603
24
0.04308502
5
0.03740717
4
0.08496444
0.0018563
19
0.0702008
5
0.0027970
77
Aug-12
0.0033741
23
Sep-12
0.0903914
27
0.0111435
5
0.0567198
94
0.0215252
64
0.0108247
62
Oct-12
Nov-12
Dec-12
Jan-13
Feb-13
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
0.0663871
95
0.0074699
98
0.0451161
83
0.0020462
77
-0.025
0.0190083
31
0.0234168
87
0.0570753
12
0.1046325
J*J
0.0025535
55
0.0002846
33
0.0002654
95
0.0050017
84
0.0009493
6
0.0013728
33
3.44891E06
7.82053E05
0.0074055
2
0.0007364
78
0.0006476
03
0.0004715
16
0.0019952
43
0.0014958
69
0.0013992
97
0.0072189
44 | P a g e
Nov-13
Dec-13
Jan-14
Feb-14
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15
SUM OF
RETURN
E
88
0.0088214
03
0.0334840
97
0.0374461
78
0.0370696
29
0.0795856
31
0.0068446
05
0.1271792
87
0.0669763
95
0.0026233
94
0.0336786
16
0.0132476
39
0.0504077
67
0.0518584
25
0.0113412
69
0.0529484
26
0.0005177
15
0.0289169
65
0.7080529
94
0.0196681
39
9
0.02848954
1
0.01381595
8
0.05711431
6
0.01740149
1
0.05991749
3
0.01282353
4
0.10751114
8
0.04730825
7
0.02229153
3
0.01401047
7
-0.0064205
0.03073962
8
0.03219028
6
0.03100940
8
0.03328028
8
0.02018585
4
0.04858510
4
VARIANCE
58
0.0008116
54
0.0001908
81
0.0032620
45
0.0003028
12
0.0035901
06
0.0001644
43
0.0115586
47
0.0022380
71
0.0004969
12
0.0001962
93
4.12228E05
0.0009449
25
0.0010362
15
0.0009615
83
0.0011075
78
0.0004074
69
0.0023605
12
0.0019531
14
0.04419
RISK
Source: authors work, moneycontrol.com
Sharpe
-1.496432942
45 | P a g e
Ratio
Treynor
Ratio
Jensens
Alpha
-0.061372565
0.01123592
CORRELATION 2: Showing relationship between return of Sensex and return of UTI

Top 100 Funds
46 | P a g e
Return of
Sensex
Return of
Sensex
Return of
UTI
Return of
UTI
1
0.934134751
GRAPH 2: Showing the difference between the risk and return of Sensex and UTI Top
100 Funds
Risk
0.04
0.04
0.04
0.04
0.04
0.04
0.04
0.04
0.04
Sensex
UTI
Return
0.02
0.02
0.01
0.01
0.01
0.01
0.01
0
0
0
Sensex
UTI
47 | P a g e
TABLE 2: Showing the expected return and risk associated with Sensex and UTI Top
100 Funds and Other Ratios
SENSEX
Month
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
Jan-13
Feb-13
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Return
0.0049062
87
0.0635309
24
0.0746954
26
0.0111187
74
0.0112194
23
0.0764895
96
0.0137165
47
0.0450960
75
0.0044886
48
0.0241044
42
0.0519447
62
0.0013662
72
0.0354862
05
0.0131315
44
0.0184455
7
0.0025835
48
0.0375266
86
Return-E
D*D
0.01890641
3
0.07753105
0.0003574
52
0.06069529
9
-0.0251189
0.0036839
19
0.0006309
59
0.00278070
3
0.06248946
9
0.02771667
3
0.03109594
8
0.00951147
9
0.01010431
5
0.06594488
8
0.01536639
9
0.02148607
9
0.00086858
2
0.03244569
7
0.01658367
4
0.05152681
2
7.73231E06
0.0060110
64
0.0039049
34
0.0007682
14
0.0009669
58
9.04682E05
0.0001020
97
0.0043487
28
0.0002361
26
0.0004616
52
7.54435E07
0.0010527
23
0.0002750
18
0.0026550
12
48 | P a g e
Sep-13
Oct-13
Nov-13
Dec-13
Jan-14
Feb-14
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15
SUM OF
RETURN
E
VARIANCE
0.0408196
26
0.0920934
56
0.0176044
63
0.0182162
02
0.0310254
56
0.0295541
79
0.0599499
43
0.0014084
53
0.0802728
19
0.0494042
7
0.0189342
16
0.0286982
38
0.0002853
06
0.0463873
96
0.0297195
53
0.0416313
66
0.0612205
64
0.0061182
99
0.0478180
61
0.5040045
51
0.0140001
26
0.02681949
9
0.07809333
0.03160458
9
0.00421607
6
0.04502558
2
0.01555405
3
0.04594981
7
0.01259167
4
0.06627269
3
0.03540414
3
0.00493409
0.01469811
1
0.01428543
2
0.03238726
9
0.01571942
6
0.05563149
2
0.04722043
8
0.00788182
8
0.06181818
7
0.0007192
86
0.0060985
68
0.0009988
5
1.77753E05
0.0020273
03
0.0002419
29
0.0021113
86
0.0001585
5
0.0043920
7
0.0012534
53
2.43452E05
0.0002160
34
0.0002040
74
0.0010489
35
0.0002471
0.0030948
63
0.0022297
7
6.21232E05
0.0038214
88
0.0015144
92
49 | P a g e
RISK
0.03891
UTI TOP 100 FUNDS

Month
Apr-12
May-12
Jun-12
Jul-12
Return
0.0350815
02
0.0473742
2
0.0670778
72
0.0097543
35
Aug-12
0.0146690
52
Sep-12
0.0758110
01
0.0101606
03
0.0450331
13
0.0104562
74
0.0010246
56
Oct-12
Nov-12
Dec-12
Jan-13
Feb-13
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
0.0518520
89
0.0082655
78
0.0509593
14
0.0125590
73
0.0283869
32
0.0017108
64
0.0513367
93
Return-E
J*J
0.05200967
0.0027050
06
0.06430238
7
0.05014970
5
0.00717383
2
0.00225911
5
0.05888283
4
0.02708877
0.0041347
97
0.02810494
6
0.02738444
1
0.01590351
1
0.06878025
6
0.02519374
5
0.03403114
7
0.00436909
4
0.04531509
9
0.01521730
3
0.06826496
0.0025149
93
5.14639E05
5.1036E-06
0.0034671
88
0.0007338
01
0.0007898
88
0.0007499
08
0.0002529
22
0.0047307
24
0.0006347
25
0.0011581
19
1.9089E-05
0.0020534
58
0.0002315
66
0.0046601
05
50 | P a g e
Sep-13
Oct-13
Nov-13
Dec-13
Jan-14
Feb-14
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15
SUM OF
RETURN
E
0.0454938
89
0.0750405
67
0.0156793
89
0.0385554
23
0.0297715
9
0.0361823
72
0.0560501
15
0.0059035
56
0.0845110
64
0.0660260
63
0.0202010
22
0.0425310
45
0.0186681
53
0.0426695
84
0.0438090
24
0.0151629
39
0.0742174
21
0.0040978
74
0.0078074
17
0.6094140
14
0.0169281
67
0.02856572
2
0.0581124
0.03260755
6
0.02162725
6
0.04669975
7
0.01925420
5
0.03912194
8
0.02283172
3
0.06758289
6
0.04909789
6
0.00327285
5
0.02560287
8
0.00173998
6
0.02574141
7
0.02688085
7
0.03209110
6
0.05728925
4
0.01283029
3
0.02473558
4
VARIANCE
RISK
0.000816
0.0033770
51
0.0010632
53
0.0004677
38
0.0021808
67
0.0003707
24
0.0015305
27
0.0005212
88
0.0045674
48
0.0024106
03
1.07116E05
0.0006555
07
3.02755E06
0.0006626
21
0.0007225
8
0.0010298
39
0.0032820
59
0.0001646
16
0.0006118
49
0.0014816
99
0.038497
51 | P a g e
Sharpe
Ratio
Treynor
Ratio
Jensens
Alpha
-1.789018183
-0.074539347
0.002531181

HDFC Top 200 Funds
52 | P a g e
Return of
Sensex
Return of
Sensex
Return of
HDFC
Return of
HDFC
1
0.92940426
GRAPH 3: Showing the difference between the risk and return of Sensex and HDFC
Top 200 Funds
Risk
0.06
0.05
0.04
0.03
0.02
0.01
0
Sensex
HDFC
Return
0.02
0.02
0.02
0.02
0.01
0.01
0.01
0.01
0.01
Sensex
HDFC
53 | P a g e
TABLE 3: Showing the expected return and risk associated with Sensex and HDFC Top
200 Funds and Other Ratios
SENSEX
Month
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
Jan-13
Feb-13
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Return
0.0049062
87
0.0635309
24
0.0746954
26
0.0111187
74
0.0112194
23
0.0764895
96
0.0137165
47
0.0450960
75
0.0044886
48
0.0241044
42
0.0519447
62
0.0013662
72
0.0354862
05
0.0131315
44
0.0184455
7
0.0025835
48
0.0375266
86
Return-E
D*D
0.01890641
3
0.07753105
0.0003574
52
0.06069529
9
-0.0251189
0.0036839
19
0.0006309
59
0.00278070
3
0.06248946
9
0.02771667
3
0.03109594
8
0.00951147
9
0.01010431
5
0.06594488
8
0.01536639
9
0.02148607
9
0.00086858
2
0.03244569
7
0.01658367
4
0.05152681
2
7.73231E06
0.0060110
64
0.0039049
34
0.0007682
14
0.0009669
58
9.04682E05
0.0001020
97
0.0043487
28
0.0002361
26
0.0004616
52
7.54435E07
0.0010527
23
0.0002750
18
0.0026550
12
54 | P a g e
Sep-13
Oct-13
Nov-13
Dec-13
Jan-14
Feb-14
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15
SUM OF
RETURN
E
VARIANCE
0.0408196
26
0.0920934
56
0.0176044
63
0.0182162
02
0.0310254
56
0.0295541
79
0.0599499
43
0.0014084
53
0.0802728
19
0.0494042
7
0.0189342
16
0.0286982
38
0.0002853
06
0.0463873
96
0.0297195
53
0.0416313
66
0.0612205
64
0.0061182
99
0.0478180
61
0.5040045
51
0.0140001
26
0.02681949
9
0.07809333
0.03160458
9
0.00421607
6
0.04502558
2
0.01555405
3
0.04594981
7
0.01259167
4
0.06627269
3
0.03540414
3
0.00493409
0.01469811
1
0.01428543
2
0.03238726
9
0.01571942
6
0.05563149
2
0.04722043
8
0.00788182
8
0.06181818
7
0.0007192
86
0.0060985
68
0.0009988
5
1.77753E05
0.0020273
03
0.0002419
29
0.0021113
86
0.0001585
5
0.0043920
7
0.0012534
53
2.43452E05
0.0002160
34
0.0002040
74
0.0010489
35
0.0002471
0.0030948
63
0.0022297
7
6.21232E05
0.0038214
88
0.0015144
92
55 | P a g e
RISK
0.03891
HDFC TOP 200 FUNDS

Month
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
Jan-13
Feb-13
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Return
0.0108599
58
0.0656592
79
0.0722560
12
0.0166863
76
0.0145897
25
0.1082271
9
0.0187728
36
0.0505430
96
0.0241598
16
0.0214328
97
0.0796140
03
0.0103765
07
0.0506591
92
0.0057789
35
0.0415154
41
0.0504740
39
0.0386247
22
0.0500530
21
Return-E
0.02707562
5
0.08187494
6
0.05604034
5
0.03290204
4
0.03080539
2
0.09201152
3
0.03498850
4
0.03432742
8
0.00794414
9
0.00521722
9
0.09582967
1
0.02659217
4
0.03444352
4
0.02199460
3
0.05773110
8
0.06668970
7
0.05484038
9
0.03383735
4
J*J
0.0007330
89
0.0067035
07
0.0031405
2
0.0010825
44
0.0009489
72
0.0084661
2
0.0012241
95
0.0011783
72
6.31095E05
2.72195E05
0.0091833
26
0.0007071
44
0.0011863
56
0.0004837
63
0.0033328
81
0.0044475
17
0.0030074
68
0.0011449
67
56 | P a g e
Oct-13
Nov-13
Dec-13
Jan-14
Feb-14
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15
SUM OF
RETURN
E
0.1201999
95
0.0055549
17
0.0345341
32
0.0500210
28
0.0325275
24
0.0984235
6
0.0126682
6
0.1392740
2
0.0728136
43
0.0181609
09
0.0469055
69
0.0018997
62
0.0524057
72
0.0455548
8
0.0304222
91
0.0449139
47
0.0153553
74
0.0343317
52
0.5837640
28
0.0162156
67
0.10398432
8
0.01066075
0.01831846
5
0.06623669
5
0.01631185
6
0.08220789
3
0.00354740
8
0.12305835
2
0.05659797
5
0.03437657
7
0.03068990
2
0.01431590
5
0.03619010
5
0.02933921
2
0.04663795
9
0.02869828
0.03157104
1
0.05054742
VARIANCE
RISK
0.0108127
4
0.0001136
52
0.0003355
66
0.0043873
0.0002660
77
0.0067581
38
1.25841E05
0.0151433
58
0.0032033
31
0.0011817
49
0.0009418
7
0.0002049
45
0.0013097
24
0.0008607
89
0.0021750
99
0.0008235
91
0.0009967
31
0.0025550
42
0.0027539
82
0.052478
57 | P a g e
Sharpe
Ratio
Treynor
Ratio
Jensens
Alpha
-1.325971512
-0.05521313
0.062950302
GRAPH 4: Showing the difference between the risk and return of Sensex, Birla Sun Life
Top 100 Funds, UTI Top 100 Funds and HDFC Top 200 Funds
58 | P a g e
HDFC Top 200 Fund
UTI Top 100 Fund
Birla Sun Life Top 100
Bse Sensex
0.01
0.02
0.03
0.04
0.05
0.06
0.5
0.4
0.3
0.2
0.1
0
HDFC Top 200 Fund

UTI Top 100 Fund
Birla Sun Life Top 100
Bse Sensex
-0.1
-0.2
-0.3
59 | P a g e

Final Project On Mutual Funds in HDFC Amc

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Final Project On Mutual Funds in HDFC Amc

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NAME: SARANG AGARWAL

Dissertation submitted in partial fulfilment of

The requirements of the Graduate Degree in

BACHELOR OF BUSINESS ADMINISTRATION (HONOURS)

J.D. BIRLA INSTITUTE (MANAGEMENT SECTION)

The Controller of Examinations

NAME: SARANG AGARWAL

Background of the Mutual Fund Industry

National and International Scenario

Aims and Objective of the Research

Brief History On Mutual Funds In India

Advantages Of Mutual Funds

Structure Of Mutual Funds In India

Classification Of Mutual Funds

HDFC Asset Management Company Limited

Products Offered By HDFC AMC

Data Analysis and Interpretation

Results and Conclusion

Result and Finding

Scope for Further Research

1.2 NATIONAL AND INTERNATIONAL SCENARIO

1.3AIMS AND OBJECTIVE OF THE RESEARCH

Fourth Phase - since February 2003

2.2 ADVANTAGES OF MUTUAL FUNDS

Low Transaction Costs:

Availability of Various Schemes:

Management of a portfolio involves continuous monitoring of various securities and

2.3 STRUCTURE OF MUTUAL FUNDS IN INDIA

Asset Management Company:

2.4 CLASSIFICATION OF MUTUAL FUNDS

Open-ended Fund/ Scheme

Close-ended Fund/ Scheme

Growth / Equity Oriented Scheme

Income / Debt Oriented Scheme

Money Market or Liquid Fund

These funds invest exclusively in government securities. Government securities have no

Tax Savings Scheme

Fund Of Funds Scheme (FoF)

Load Or No Load Fund

2.5 JOURNAL REVIEWS

A STUDY ON INVESTORS ATTITUDE TOWARDS MUTUAL FUNDS AS AN

PREFERENCE OF INVESTORS FOR INDIAN MUTUAL FUNDS AND ITS

A STUDY OF OPPORTUNITIES AND CHALLENGES FOR MUTUAL FUND IN

ANALYSIS OF EQUITY BASED MUTUAL FUNDS IN INDIA

PERFORMANCE EVALUATION OF EQUITY MUTUAL FUNDS (ON SELECTED

AN ANALYSIS OF INVESTORS RISK PERCEPTION TOWARDS MUTUAL

alignment in accordance with investors expectations. Thus, it has become imperative to

INDIAN MUTUAL FUND INDUSTRY: OPPORTUNITIES AND CHALLENGES

MUTUAL FUND INDUSTRY IN INDIA: AN OVERVIEW

3.2 PRODUCTS OFFERED BY HDFC AMC

2) HDFC EQUITY Fund (HEF) is an open-ended growth scheme managed under

4) HDFC CAPITAL BUILDER PLAN (HCBF) is an open-ended growth scheme

5) HDFC CORE & SATELLITE FUND (HCSF) is an open-ended growth scheme

6) HDFC PREMIER MULTI-CAP FUND (HPMCF) is an open-ended growth

7) HDFC LARGE CAP FUND (HlCF) is an open-ended growth scheme managed

8) HDFC MIDCAP OPPERTUNITIES (HMCOF) is an open-ended growth scheme

10) HDFC INFRASTRUCTURE FUND (HINFR) is an open-ended equity scheme

11) HDFC LONG TERM ADVANTAGE FUND (HFTAL) is an open-ended equity

16) HDFC CORPORATE DEBT OPPORTUNITIES FUND (HCDOF) is an open

17) HDFC MEDIUM TERM OPPORTUNITIES FUND (HMTOF) is an open ended

18) HDFC SHORT TERM OPPORTUNITIES FUND (HSTOF) is an open ended

19) HDFC FLOATING RATE INCOME FUND-LONG TERM PLAN (HFRIF) is an

25) HDFC CASH MANAGEMENT FUND-TREASURY ADVANTAGE FUND is an