TARUN B PATEL MO:- 9925596229 , 9274364044

DECLARATION

I, the undersigned, Tarun.B.Patel, M.B.A Semester- IV . Student of Om

Vindhyavasini Institute of Management, affiliated to Saurashtra University,
Rajkot; here by declare that the Comprehensive Research Report on “Performance
Comparison of Growth Schemes of Selected Mutual Funds ” is my original
research work-study. It is purely submitted as my Research Study work, which is
a part of M.B.A. curriculum and it is not submitted for the award of any other
degree/diploma or other similar titles to any other institute/organization or
university.

TARUN.B.PATEL
M.B.
A Sem 4th
Mo:-992596229

Date:

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TARUN B PATEL MO:- 9925596229 , 9274364044

PREFACE

The corporate world is now becoming more and more competitive due to
globalization as well as due to emergence of many industrial sectors. Highly
professional people come from business school. So from this angle our Om
Vindhyavasini Institute of Management of Saurashtra University has granted
M.B.A. program.
This M.B.A. program provides an opportunity for this type of Research
Report knowledge.
Through this financial analysis report we know how to use finance in
business. Today the finance manager is not in a passive role of a scorekeeper of the
accounting information and arranging funds whenever directed to do so. Rather he
occupies a key position in top management and plays a dynamic role in solving the
complex management problems.
This financial analysis report was so zestful and accomplished our
expectation.

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ACKNOWLEDGMENT
I am indebted to Mr.Chintan Vora, Faculty of OMVVIM., for providing an opportunity
of preparing “A Comparative research on “ Performance Comparison of Growth Schemes of
Selected Mutual Funds “ and allowing me to use the resources of the institution during this
project and also for his valuable support for this project.

I am also thankful to the other faculty members of the OMVVIM College for extending
their valuable support for this project.

Finally I would also like to thank my Friends, who are always a source for inspiration for
me, for showing their understanding, patience and for all their possible help for the preparation
of this project

T
ARUN.B.PATEL
M.B.
th
A Sem 4

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EXECUTIVE SUMMARY
The Indian mutual fund industry came into existence with the establishment of Unit Trust
of India in 1964. Unit Trust of India was not efficient enough to expand the mutual fund market.
In late 1980’s nationalized bank sponsored mutual funds came into existence which helped
mutual fund industry to expand its market.

The private sector mutual fund entered the industry during early 1990’s with greater
variety of products and better services. They introduced different kinds of products satisfying the
needs of the different classes of investors.

The major limitation of mutual fund industry in India is the lack of awareness among the
investors. Most of the investors are not at all aware about what is mutual fund? How it
functions? How money collected from investors are invested, etc against which in America more
than eighty million people or one half of the households invest in mutual funds. That means that,
in the United States alone, trillions of dollars are invested in mutual funds.

Mutual fund industry depends on gaining the trust of investors. Once the investors trust is
gained it is easy to convince them to invest in mutual funds. The investors are attracted based on
the performance of the mutual funds rather than winning the trust of investors. The performance
of mutual funds is variable, sometimes it may go up and sometimes it may come down. It is also
not sure that the past performance will be repeated in the current period. Still the investors are
attracted based on the past performance of mutual funds. The Indian mutual fund industry should
come out of this limitation. They should try to attract the investors by gaining their trust rather
than showing the past performance of mutual funds.

Most of the investors are not aware about the professional fund managers of the mutual
funds. They invest in the mutual funds based of the returns which mutual fund yields. The
investors are not aware that the fund managers of mutual funds do systematic analysis of the

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companies in which they are going to invest; they give suggestions to the companies which are
not performing well. Therefore the mutual fund industry should try to promote about their
professional fund managers, which would help the industry to attract the investors and expand its
market.

The mutual fund industry in India is still in the developing stage. Many of the mutual
fund companies are presently functioning in the urban area, but in country like India where the
substantial part of total population lives in the rural area, also the mutual fund companies needs
to expand their business in the unexplored rural areas which will lead to the substantial increase
in the total amount which is invested in mutual funds.

The basic functioning of mutual fund depends on the equity and debt market. The
portfolio of different mutual funds companies constitutes of the investments in any of these
markets depending upon the type and scheme of mutual fund.

Whenever any of the above mentioned market goes down the respective fund is affected. For
example if the market has gone down by 30% but the mutual fund’s NAV has gone down only
by 10% than the investor should understand that the fund manager of such scheme is really
efficient. But rather than having such a long view the investors thought is limited to short run
and they think that the scheme in which they have invested is not good and they withdraw their
money by incurring losses which is one of the major limitation of the investors investing in
mutual funds, which the mutual fund company must try to overcome by increasing the awareness
regarding the basic functioning of mutual funds and making the customers aware regarding the
difference between the absolute and relative returns.