MUTUAL FUND FINANCIAL

PERFORMANCE ANALYSIS:
A COMPARATIVE STUDY ON EQUITY
DIVERSIFIED SCHEMES AND EQUITY
MID-CAP SCHEMES.

D V SRAVANI
1424-17-672-094
ABSTRACT
This article focused on the financial performance
analysis of mutual fund schemes (equity diversified
schemes and equity mid-cap schemes) of selected
banks (State Bank of India, Canara Bank- Public
Bank, ICICI Bank, HDFC Bank-Private Bank).The
objectives of this research work is to analysis the
financial performance of selected mutual fund
schemes through the statistical parameters
(Standard Deviation, Beta and Alpha) and ratio
analysis (Sharpe Ratio, Treynor Ratio, Jenson Ratio,
Information Ratio)
INTRODUCTION
The SEBI regulations, 1993 defines a mutual fund as “a
fund in the form of a trust by a sponsor, to raise money
by the trustees through the sale of units to the public,
under one or more schemes, for investing in securities in
accordance with these regulations”
A mutual fund is a professionally-managed firm of
collective investments that pools money from many
investors and invests it in stocks, bonds, short-term
money market instruments, and/or other securities. The
value of a share of the mutual fund, known as the net
asset value per share (NAV), is calculated daily based on
the total value of the fund divided by the number of
shares currently issued and outstanding
CONCEPT OF MUTUAL FUNDS
TYPES OF MUTUAL FUND
SCHEME
• the mutual fund industry of India is continuously
evolving. Along the way, several industry bodies
are also investing towards investor education. Yet,
according to a report by Boston Analytics, less
than 10% of our households consider mutual
funds as an investment avenue. It is still
considered as a high-risk option.
• Various types of mutual funds categories are
designed to allow investors to choose a scheme
based on the risk they are willing to take, the
investable amount, their goals, the investment
term, etc.
FRAME WORK
• In this research paper, the researcher took only
two schemes and four banks taken as sample.
The aim is to evaluate, compare and rank the
financial performance of the mutual fund
schemes. The data collected from the secondary
source
• This research finding will be useful to the
investors and the mutual fund company, in the
investors‟ point of view that the investors can
understand that financial performance of the
selected schemes of selected banks, in the same
way the mutual fund organization can benefit
with this research findings by understand the
acceptance level of the mutual fund schemes.
REVIEW OF LITERATURE
Review of the literature plays an important role in
any research, it is considering the importance of
mutual funds and several academicians have tried
to study the performance of various mutual funds.
Literature on mutual fund performance evaluation is
enormous. Herewith some of the research studies
that have influenced the preparation of this study
substantially are discussed in this section
CONCLUSIONS
• This study also creates awareness among the investor
community thereby before choosing the mutual fund
scheme, the investor should undergo fact sheet
thoroughly and he has to choose the best one. Among
the Open ended – Midcap schemes, HDFC Capital
Builder (G) is the preferred and recommended one for
the investors based on the past performance analysis
using Treynors, Sharpe, and Information ratio, Alpha
index. And Among the Open ended – Equity Diversified
schemes, Canara Robeco Equity Diversified (G), is the
preferred and recommended one for the investors
based on the past performance analysis using
Treynors, Sharpe, and Information ratio.
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