Abstract
Evaluating the Performance of Various Mutual Fund Schemes in India – For the developing countries like India, capital market plays vital role in stabilizing the economy as well as strengthening the performance of the industries. There is lot of investment opportunity available for the investors. He/she may invest in bank deposits, corporate bonds, debentures and etc…, these are the low risk investment as well as providing low return to the investors. Another option may be investing in shares, which are high risk in nature and also providing high return to the investors. For reducing the risk the investor may approach the portfolio manager to invest in a capital market on behalf of them, now we have wealth management services which are provided by many financial institutions. However these institutions are not providing better investment avenues for the small investors because of the cost which is incurred in it.
For these purpose only the importance of the mutual funds are increased recent years. And also most of the investors are preferred to invest in a mutual fund for reducing the risk and for the assured return. It has a presence in both capital market and a money market. Mutual fund is a financial intermediary which allows a group of investors to pool up their money to invest in various avenues like debentures, equity shares, money market instruments, fixed deposits, government securities and etc… mutual fund is also having a fund manager who is responsible for the investing a poll of money into the various securities. This is one of the professional investments which are managed by the fund managers to deploy the savings of the investors in a right direction. It also played an important role in an individual investment strategy too.
To discuss the performance of the mutual fund it has well diversified investment portfolio so it may provide assured return to the investors. While the investors invest in a mutual fund, which represents that the investors had a portion of the fund that they already hold. The holding portion may differ from the schemes they invest. The holding portion is based on the amount they invest. When we compare share to the mutual fund, shares has a price like that mutual fund has a NAV. In a detail NAV represent the unit price of the fund or the value the investor may buy and sell the unit of the fund. NAV may calculate on a daily basis with a combined value of bond, shares and securities after deducting the allowance expenses. When the investor plan to invest in a mutual fund they should not concentrate on the NAV value, rather than they have to check the performance consistency of the fund.
Mutual fund industry has seen a lot of changes in the past few years, because of the lot of multinational companies coming in to the country, and bringing their professional investors to manage the fund worldwide in an effective way. Now the investors have a multiple option for the investments based on the schemes like open ended, close ended, income oriented, growth oriented, and etc… There have lot of studies which is conducted to measure the performance of the mutual fund schemes, and showed that most of the mutual funds are able to provide well diversification, professional management and liquidity.
Problem Statement
The mutual funds are growing enormously, so the investment management companies are used to provide investment opportunities in mutual funds. It is the best way for the investor to diversify their investments in a various securities. It is also reduced their risk and make an assurance for a return. Analysing the performance of the mutual funds through performance index models is helping the investor to identify the best performed funds and to take the decision. The present research is to find the application of performance index and evaluate the reliability of the results.
Objectives of the Study
- To find out the risk and return on selected mutual fund schemes.
- To evaluate the performance of the mutual funds.
- To rank the mutual funds based on their performance.
- To suggest suitable mutual fund scheme to the investor.
Scope of the Study
The present research comprises of 15 large cap mutual fund schemes which is offered by various financial institution, banks and unit trust of India. For this research 5 years data are used for analyzing the performance of the mutual fund. The monthly returns are compiled on the basis of NAV, and also compared with the benchmark for the evaluation. The performance of mutual fund will be analyzed through and the performance index model with the comparison of market return. The evaluation also provides guidance for identifying strengths and weaknesses of fund managers in the investment process, which helps the investors to take corrective actions. This evaluation will help the investors best mutual fund scheme under large cap. Now a day’s most of the mutual fund scheme are a having unique characteristics.
Limitations of the Study
- Only Equity- Growth oriented schemes are considered for the research.
- The research analyzed the 5 years of data which is insufficient to draft a precise result.
- It only used the statistical tools like Sharpe ratio, Jensen’s ratio, Treynor’s ratio, Beta and Standard deviation. It fails to address the other parameters.
- Only open ended schemes are considered for the purpose.
Components of a Project Report
A project report varies according to the MBA final year project course at top colleges, depending on the consequences and the requirements of the concerned project. But broadly, a project covers the following components:
- Title page
- Table of contents
- Introduction
- Background of the project
- Project objectives
- Methodology
- Results
- Discussion and Analysis
- Conclusion
- Bibliography or references
- Appendices
Project Report Pages : 80
Can be used in : Finance Final Year Project
Delivery Time : Within 2 hours.
Support / Query : Call +91-7449000533
Email [email protected]
