INDEX

SR NO TOPICS PAGE NO

1 Executive Summary 2-3

2 Objectives of study of Mutual funds 4-5

3 Introduction of Mutual Funds 6-23

4 HDFC Mutual Fund 24-31

5 SBI Mutual Fund 33-43

6 Literature Review 44-46

7 Research Methodology 47

8 Data Collection(primary Data) 48-50

9 Findings & suggestions 51-58

10 Bibliography 59

11 Conclusion 60

1
 INTRODUCTION
A Mutual fund is a scheme in which several people invest their money for
a financial clause. The collected money is invested in Capital markets & the
money which they earned is divided based on the number of units which they
hold.

The Mutual fund Industry was started in India in a small way with the UTI
creating what was effectively a small savings division within the RBl.This
was fairly successful for the next 25 years as it gave investors good returns.
Due to this RBI gave a go ahead to Public sector banks & financial
institution to start Mutual Funds in India and their success gave way to Private
sector Mutual Funds.

The advantage of Mutual Funds is Diversification, Liquidity,

ProfessionalManagement, affordability, Risk, Less cost for bulk

Transaction cost, Invest in smaller denomination, suit for financial goal and

Quick and painless process.

The Disadvantages of Mutual Fund & are high expense ratios and sales
charges, management abuses, tax efficiency, poor trade execution and
misleading advertisement.

Mutual Funds have to follow specific rules and regulation which are
prescribed by the SEBI. AMFI is the apex body of all the Asset Management
companies and is registered with the S EBI. Association of Mutual Funds

2
 India has brought down the Indian Mutual Fund Industry to a. professional
and healthy market with ethical lines enhancing.

There are many types of mutual funds in India. You can classify on the
basis of BY STRUCTURE. (Open Ended Schemes.Close-Ended Schemes
& Interval schemes), BY
NATURE. (Equity Fund, Debt Fund, Balanced Fund), BY INVESTMENT
OBJECTIVE

(Growth Schemes, Income Schemes, Balanced schemes & Money Market

Schemes), OTHER SCHEMES (Tax Saving Schemes, Index Schemes, Sector
specific).

Mutual Funds are very easy to buy and sell. You can buy mutual funds
directly from company or broker. Before Investing in Mutual Funds, one has
to look at all the factors like performance of the mutual funds from last 5
years, the returns given by mutual funds from last 5 year& the company’s net
worth has to be considered.

There are two types of Mutual Funds in India Public Sector Mutual Fund & private
sector Mutual Fund.

In Public Sector Mutual Funds, there is UTI Mutual Fund, State bank of India
Mutual Funds, Bank of
Baroda Mutual Funds & in Private sector, Mutual Funds there are Birla Sun Life
Mutual, HDFC Mutual Fund, Reliance Mutual Fund, etc.

The Most trends of Mutual Funds are the aggressive expansion of Mutual Funds.
Nowadays there is a lot of Competition within the Mutual Fund as there is lot of private
sector & public sector mutual funds have entered the industry.

Returns Comparison has been done between two Mutual Fund Companies like HDFC
Mutual Fund & SBI Mutual Fund. In comparison we had taken both small & midcap

3
 companies. In which markets they have invested the investor’s money and how the returns
for the 5 years have been done. It gives you an Idea how you can and where you can
invest.

“Mutual Funds are subject to Market Risk, please read the offer document
before investing”

OBJECTIVE OF THE STUDY OF MUTUAL FUND

The objective of the study is to analyses’, in detail the growth pattern of the
mutual fund industry in India and to evaluate performance of different
schemes floating by mast preferred mutual funds in public and private sector.
The Main Objectives of this project.

 To Study about the Mutual Funds in India

 To Study about returns of the Mutual Funds

 To give brief Idea about mutual funds available in India

 To give an idea about the schemes. Available

 To study market trends in mutual funds

 To study some mutual fund
companies and their funds
 To give idea about the
regulation of mutual fund
 To study about mutual fund
schemes

4
Many individuals own mutual funds today. Indeed, mutual fund
industry is very big. It comprises of many investors financial assets,
whether for retirement or taxable saving purposes. To a large
extent. Mutual funds are investment vehicle for the majority of
households in India.

The overall study of my study on this project is to know which

companies provide better returns HDFC Mutual funds & SRI Mutual
Funds and also calculate their returns from last 5 years. We have to
examine carefully all the possibility while calculating the rerun's. I
am doing my Project on -Small size Midcap companies". We have to
make comparison so it is very useful for investors to make a decision.

5
 COMPARATIVE STUDY OF MUTUAL FUNDS IN INDIA

(Reference to HDFC Mutual Fund & SBI Mutual Fund)

Introduction of Mutual Fund

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 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 sells out the stock.
Fund manager concentration on risk-return trade off, where minimize the
risk and maximize the return trough diversification of the portfolio. The
most common features of the mutual fund unit are low cost.

6
 Most open-end Mutual funds continuously offer new shares to investors. It
is also known as open ended investment company. It is different from close
ended companies.

Investment in securities is spread across a wide cross section of industries

and sectors thus the risk is reduced. Diversification reduces the risk because
all stocks may move in the same direction in same proportion at same time.
Mutual funds 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 and losses are shared by the investors in proportion to
their investment. The mutual fund comes out with different schemes that
vary from time to time.

7
 DEFINITION OF MUTUAL FUND

“A Mutual Fund is a pool of money from numerous investors who wish to save
or make money just like you. Investing in a mutual fund can be a lot
easier than buying and selling individual stocks and bonds on your own.
Investors can sell their shares when they want”.

“A Mutual Fund is nothing more than a collection of stocks and/ or bonds. You
can think of a mutual fund as a company that brings together a group of people
and invests their portion of the holdings of the fund.”

8
 ADVANTAGES OF MUTUAL FUND

 DIVERSIFICATION

One of the biggest advantages mutual funds give you is that of immediate
diversification. You may not have enough money to spread your investments in
varied stocks and sectors, but by pooling money from thousands of similar
investors, a mutual fund spreads your investment and hence, risk. It is highly
unlikely that all the stocks will go down by the same proportion on any particular
day. This ensures that you have not kept all your eggs in one basket and are safe
from incurring huge losses from a single bad investment.

 PROFESSIONAL MANAGEMENT

Another big benefit of investing in mutual funds is the professional expertise it

provides for your investments. Asset Management Companies (AMCs) provide
qualified fund managers who, with the help of strong research teams and their own
expertise, pick the best options to meet the fund's objective. This saves you time and
the stress of constantly monitoring your investments and wondering if you made the
right buy or sell decision. With mutual funds, you do not have to worry about market
swings.

 AFFORDABILITY

You may want to buy shares of large companies or want to invest in big companies in a
particular sector of choice. However, you may not have the money to make a big
investment. Mutual funds trade in big volumes, giving their investors the advantage of

9
 lower trading costs. Anyone can start an investment in a mutual fund through a
Systematic Investment Plan (SIP) with as little as Rs. 500.

For example, say Pooja has just started her career and wishes to put aside atleast Rs
48,000 annually to go on an overseas vacation after three years. Instead of waiting to
collect a lump sum of Rs 48,000 to kick start the investment, mutual funds allow Pooja
to invest a small sum of Rs 4,000 every month, in the form of a SIP. This makes it
affordable for Pooja and at the same time keeps her goal on track.

 LIQUIDITY

An investor who is hit with a financial emergency might have to sell out in a hurry. That
can be disastrous if the assets have taken a hit at the wrong moment. It tends to
be less so in mutual funds, which swing in value less wildly because of their
diversification.

 LESS COST FOR BULK TRANASACTION

You must have noticed how price drops with increased volume, when you buy any
product. For instance, if 100g toothpaste costs Rs. 10, you might get a 500g pack for,
say, Rs. 40. The same logic applies to mutual fund units as well. If you buy multiple
units at a time, the processing fees and other commission charges will be less
compared to when you buy one unit.

 INVEST IN SMALLER DENOMINATION

By investing in smaller denominations (SIP), you get exposure to the entire stock (or
any other asset class). This reduces the average transactional expenses – you benefit
from the market lows and highs. Regular (monthly or quarterly) investments as
opposed to lump sum investments give you the benefit of rupee-cost averaging.

 SUIT FOR FINANCIAL GOAL

There are several types of mutual funds available in India catering to investors from all
walks of life. No matter what your income is, you must make it a habit to set aside
some amount (however small) towards investments. It is easy to find a mutual fund
that matches your income, expenditures, investment goals and risk appetite.

 QUICK AND PAINLESS PROCESS

10
 You can start with one mutual fund and slowly diversify. These days it is easier to
identify and handpick fund(s) most suitable for you. Maintaining and regulating the
funds too will take no extra effort from your side. The fund manager with the help of
his team of will decide when, where and how to invest. In short, their job is to
consistently beat the benchmark and deliver you maximum returns.

DISADVANTAGES OF MUTUAL FUND

 HIGH EXPENSE RATIOS AND SALES CHARGES

If you're not paying attention to mutual fund expense ratios and sales charges, they
can get out of hand. Be very cautious when investing in funds with expense ratios
higher than 1.20%, as they are considered to be on the higher cost end. Be wary
of advertising fees and sales charges in general. There are several good fund
companies out there that have no sales charges. Fees reduce overall investment
returns.

 MANAGEMENT ABUSES

Churning, turnover, and window dressing may happen if your manager is abusing his
or her authority. This includes unnecessary trading, excessive replacement, and
selling the losers prior to quarter-end to fix the books.

 TAX EFFICIENCY

Like it or not, investors do not have a choice when it comes to gains payouts in
mutual funds. Due to the turnover, redemptions, gains, and losses in
security holdings throughout the year, investors typically receive distributions from
the fund that are an uncontrollable tax event.

 POOR TRADE EXECUTION

11
 If you place your mutual fund trade any time before the cut-off time for same-day NAV,
you'll receive the same closing price NAV for your buy or sell on the mutual fund. For
investors looking for faster execution times, maybe because of short investment
horizons, day trading, or timing the market, mutual funds provide a weak execution
strategy.

 MISLEADING ADVERTISEMENT

The misleading advertisements of different funds can guide investors down the wrong
path. Some funds may be incorrectly labeled as growth funds, while others are
classified as small-cap or income. The SEC requires funds to have at least 80% of assets
in the particular type of investment implied in their names. The remaining assets are
under the discretion solely of the fund manager.

History of mutual fund

Unit trust of India was the first mutual fund set up in India in the year 1963. In early 1990s,
government allowed public sector banks and institutions to setup mutual funds. In the year 1992,
securities and exchange board of India (SEBI) act was passed. The objectives of SEBI are to
protect the interest of investors in securities and to promote the development of and to regulate
the securities market change.
As far as mutual forces are concerned SEBI formulates policies and regulate the mutual funds to
protect the interest of the investors. Security Exchange Board of India notified regulations for the
mutual funds in 1993. There after mutual funds sponsored by private sector entities are allowed
to enter the capital market. The regulation where fully revised in 1996 and have been amended
thereafter from time to time.
There are four phases in mutual funds have evolved.

First phase 1964 to 1987

Unit trust of India UTI was established on 1963 by an act of parliament it was set up by the
reserve Bank of India and functioned under the regulatory and administrative control of the
reserve Bank of India. In 1978 UTI was delinked from the RBI and the industrial development
Bank of India IDBI took over the regulatory and administrative control in the place of RBI. The
first scheme launched by UTI was unit scheme 1964.

12
Second phase 1987 to 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 Canara
Bank mutual fund December (87), Punjab national Bank mutual fund august 1989, Indian Bank
mutual fund November (89), Bank of India June (90), Bank of Baroda mutual fund October
(92).LIC established is its mutual fund in June 1989 while GIC had set up its mutual fund in
December 1990.

3rd phase 1993 to 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 avoids the 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 earths while Kothari Pioneer now we must
with (Franklin Templeton) was the first private sector mutual fund registered in July 1993. The
1993 SEBI (Mutual Fund) regulations word substitute by a more comprehensive and revised
mutual fund regulations 1996. The number of mutual fund houses went on increasing’s with
many foreign mutual funds setting up funds in India and also the industry has witnessed several
mergers and acquisitions.

Fourth phase since February 2003

In February 2003 following the people 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 acids under
management of rupees 29 835 crores at the end of January 2003 representing broadly the assets
of us 64 scheme associate return and certain other skills the specified undertaking of you trust of
India functioning under and administrative and under the rules framed by government of India
and does not come under the purview of mutual fund regulations II is the UTI mutual fund
limited sponsored by SBI PNB bob and LIC it is registered with SEBI and functions under the
mutual fund regulations with the bifurcation of the US while UTI which had in march 2010 5073
6,000 crores of assets under management and with the setting up of a metal is UTI mutual fund
conforming to the SEBI mutual fund regulations and with the recent mergers taking place among
different private sectors funds the mutual fund industry has entered is current face of
consolidation and grow.

Association of Mutual funds in India AMFI

13
With the increasing mutual fund players in India on IIT for mutual fund association in India was
generated to function as a non-profit organization association of mutual fund in India AMFI I
was incorporated on 22nd August 1995.
AMFI is an apex body of all asset management companies AMC which has been registered with
SEBI.Till date that all the AMC are that have launched mutual fund schemes are its members. Its
functions under the supervision and guidelines of its board of directors.
Association of mutual funds India has brought down the Indian mutual fund industry to a
professional and healthy market with ethical lines in enhancing.

The objectives of association of mutual funds in India

The association of mutual fund of India with 30 registered and seas of the country it has certain
defined objective the guidelines of its board of directors the objectives are as follows.

 The mutual fund association of India maintenance high professional and ethical standards
in all areas of operation of the industry.

 It also recommends and promotes the top class business practices and code of conduct
which is followed by members and related people engaged in the activities of mutual fund
and asset management including agencies connected or involved in the field of capital
markets and financial services.

14
  2
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0
0
0
0
0

w
i
t
h

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e

s
e
curities and exchange board of India SEBI and to represent to SEBI in on all matters
concerning the mutual fund industries.

 To represent the government reserve Bank of India and other bodies on all matters
relating to the mutual fund industry.
Tu undertaken nationwide Investor awareness program so as to promote proper understanding of
the construction and working of mutual funds.
To Dessisimate information on mutual fund industry and to undertake studies and research
directly and or in association with other bodies. Today late conduct of distributors including
disciplinary actions cancellation of air for violation of code of conduct. To promotes interest of
investor or unitholder.

A) BY STRUCTURE
 Open-Ended- this game allows investors to buy or sell events at any point in time. This does not
have fixed maturity date. Investors can conveniently buy and sell units at Net Asset Value related
prices. The key feature of open ended scheme is liquidity.

 Closed -Ended- closed end fund has a fixed number of shares outstanding and operates for a
fixed duration generally ranging from 3 to 15 years).The fund would be open for subscription

15
 only during a specified period and there is an even balance of buyers and sellers, so someone
would have to be selling in order for you to be able to buy it. Closed- end funds are also listed on
the stock exchange so it's traded just like other stocks on an exchange or over the counter.
Usually the redemption is also specified which means that they terminate on specified dates when
the investors can redeem their units.

 INTERVAL- Interval schemes combine the features of open-ended and close-ended funds. The
units may be traded on the stock exchange on May be open for sale or medicine during pre-
determined intervals at a NAV-related prices. Fixed maturity plans, or FMPs examples of this
type of schemes.

B) BY NATURE
 Equity Fund- Equities are a popular mutual fund category amongst retail investors. They invest
the funds into Equity holdings. the structure of the fund me very different for different schemes
and the fund managers outlook on different stocks. This phone's Asif classified depending on
investment objectives such as
a) Diversified and Equity Funds
b) Mid-cap Funds
c) Sector specified Funds
d) Tax savings Funds(ELSS)

 Debt Funds - debt funds are mutual funds that invest in fixed income securities like bones and
treasury bills. Gilt fund monthly income plans (MIPs), short term plans (STPs), liquid funds and
fixed maturity plans (FMPs) are some of the investment option in death funds. Apart from these
categories, debt funds include various funds investing in short term, medium term and long term
bonds.

 Balanced Funds - discount allows investors to enjoy growth and income at regular intervals.
Funds are invested in both equities and fixed income securities the proportion is pre- determined
and disclosed in the scheme related offer document. These are ideal for cautiously aggressive
investors.

C) BY INVESTMENT OBJECTIVE
 Growth Schemes- Growth schemes are also known as equity schemes. The aim of this scheme
is to provide capital appreciation over medium to long term. This schemes normally invest a
major part of funds in equities and look for capital appreciation.

 Income Scheme - Income scheme are also known as debt schemes. The aim of the skin is to
provide regular and steady income to the investor. These schemes invest in fixed income

16
 securities such as bonds and corporate debentures. In such schemes capital appreciation may be
limited.

 Balance Scheme - this scheme allows investors to enjoy growth and income at regular intervals.
Funds invested in bonds equities and fixed income securities; the proposal is Pretty the mind and
disclosed in the scheme related of a document. These are ideal for the cautiously aggressive
investors.

 Money Market Scheme - this is ideal for investors looking to utilize their surplus funds in short
term instruments while awaiting better options. These schemes invest in short terms instruments
for TS treasury bills certificate of deposit commercial paper and intercompany call money and
seek to provide reasonable returns for the investors.

D) OTHER SCHEMES
 Tax Saving Schemes - as the name suggests this scheme offer tax benefits to its investors. The
funds are invested in equities thereby offering long term growth opportunities. Tax saving mutual
funds (called equity linked savings schemes) has a three-year lock-in period.

 Index Schemes - Index schemes is a widely popular concept in the West. These follow a passive
investment strategy where did your investment replicate the movements of benchmark indices
like nifty Sensex, etc.

Sector Specific Schemes - Sectoral funds are invested in a specific sectors like infrastructure, IT,
Pharmaceuticals,etc. or segments of the capital market like large caps, mid- caps,etc.This scheme
provides a relative high- risk return opportunity within the equity space.

17
Comparison between FD, Bonds and Mutual Funds-Features

18
 Mutual Funds In India
The mutual fund industry in India begins in 1963, with the formation of the Unit Trust of India
(UTI) as an initiative for the government of India and the Reserve Bank of India. Much later, in
1987, SBI Mutual Fund became the first non-UTI mutual fund in India.
The year 1963 heralded a new era of mutual funds in India. It was marked by the entry of private
companies in the sector. After the Securities and Exchange Board of India (SEBI) act was passed
in 1992. The SEBI mutual fund regulation came into being in 1996.Since then the mutual fund
companies have continue to grow exponentially with foreign institutions selling shop in India
through joint ventures and acquisitions.
As the industry expanded, a non-profit organization the association of mutual funds in India
(AMFI) was established on 1995.Its objective is to promote healthy and ethical marketing
practices in the Indian mutual fund industry.SEBI has made AMFI certification mandatory for all
those engaged in selling or marketing mutual fund products.

Best Top Performing Mutual Funds in India as Per 2019

LARGE CAP MID CAP SMALL CAP MULTI CAP

Reliance Large L&T Mid Cap Fund SBI Small Cap Fund Mirae Asset India
Cap Fund Equity Fund

Aditya Birla SL HDFC Mid cap L&T Emerging Kotak Standard

Frontline Equity Opportunities Fund Business Fund Multi Cap Fund

LARGE CAP MID CAP SMALL CAP MULTI CAP

Reliance Large L&T Mid Cap Fund SBI Small Cap Fund Mirae Asset India
Cap Fund Equity Fund

Aditya Birla SL HDFC Mid Cap Fund L&T Emerging Kotak Standard
Frontline Equity Business Fund Multi Cap Fund

HDFC Top 100 DSP Mid Cap Fund HDFC Small Cap Fund Reliance Multi Cap
Fund Fund

SBI BlueChip Sundaram Mid cap Franklin India Smaller Aditya Birla SL
Fund Fund Cos Fund Equity Fund

19
 ICICI Pru Blue- Invesco India Growth Reliance Small Cap Canara Robeco
chip Fund Opportunities Fund Fund Equity Diversified

Regulatory Body of Mutual Funds in India

As far as mutual Funds are concerned, SEBI (Securities and Exchange Board of India)
formulates policies and regulate the mutual funds to protect the interest of the investor.
In January 1993, SEBI prescribed registration of mutual funds and equity in business transactions
and financial soundness while granting permissions. This would curb excessive growth of mutual
funds and protect investor’s interest by registering only the sound promoters with proven track
record and financial strength.
The offer documents of schemes launched by mutual funds and the scheme particulars are
required to be vetted by Security Exchange Board of India. A standard format for mutual fund
prospectus is being formulated.
Mutual Funds have been required to adhere to a code of advertisement.
SEBI has introduced a change in the securities control and regulation act governing the mutual
funds which have been in the market for at least 5 years are allowed to assure a maximum return
of 12%, only for one year.
The current SEBI guidelines on mutual Funds prescribe a minimum startup of rupees 50 crore for
an open ended scheme, and Rs. 20 crores for closed ended scheme, failing which application
money has to be refunded.AMFI (Association of Mutual Funds in India) have appeal to
regulatory authority of India for scrapping the minimum requirements.
Also, 50% of the directors of AMC must be independent. All mutual Funds are required to be
registered with SEBI before the launch any scheme.
The transparent well understood declaration or Net Asset Values (NVS) of mutual fund schemes
is an important issue in providing investors with information so as to the performance of the fund.
SEBI has warned some mutual Funds earlier of unhealthy market.
Trustees shall immediately report to the board of any special developments in the mutual fund.

20
NET ASSET VALUE (NAV)

The net asset value n a v of a mutual fund is a price at which the units of mutual fund are bought
and sold. It is the market value of the found after deducting is liabilities. The value of all units of
a mutual fund portfolio are calculated on a daily basis from this all expenses are there in
subtracted. The result is then divided by the total number of units the resultant value is the NAV.
NAV is also sometimes referred to as NET Book value or book value.
NAV indicates the market value of the units in a fund. So, it helps an investor keep track of the
performance about the mutual fund. Investor can calculate the actual increase in the value of the
investment AAby determining the percentage increase in the mutual fund and NAV. NAV,
therefore, gives accurate information about the performance of the mutual fund.

Calculation of NAV
Mutual fund assets usually fall under two categories- securities and cash. Securities here include
both bonds and stocks. Therefore, the total asset value of a fund will include its stocks shares and
bonds at market value. Dividend and interest accrued and liquid assets are also included in total
assets.
The formula for calculating NAV:
NAV of a mutual funds= (Assets of the Fund- Liabilities of the fund)/ Number of outstanding
units of the fund
The mutual fund itself and Austin accounting firms calculate the NAV of a mutual fund. Since
mutual Funds depend on stock markets they are usually declared after the closing hours of the
exchange. All mutual Funds are required to publish their NAV at every business day as per SEBI
guidelines. Energy is obtained after subtracting the expense ratio of a fund. This expense ratio is
the total of all expenses made by the mutual fund annually, including the operating expenses and
the management fees, distribution and marketing fees, transfer agent fees, custodian fees and
audit fees.
Example of calculation of a NAV

21
as an example, assume there to investors X and y who have invested in a mutual fund which
decided to issue about units at Rs.1/-
X invests Rs.100 and Y invested Rs.200.
The total Corpus of the mutual fund will be rupees hundred plus rupees 200 equal to rupees 300
and X will get 100 units and Y will get 200 units.
Now suppose the mutual fund manager in waste smartly over here and makes the investment
grow and the corpus become Rs.800.
The NAV will be calculated as:
NAV offer mutual funds= (Assets of the fund-Liabilities of the fund)/Number of the outstanding
units of the fund
= [Rs. 800-0]/300=2.67
=The NAV is 2.67
=So X's value of investment will be 100 units*2.67=Rs. 267/ and
= X's value of investment will be 200 units*2.67=Rs.534/
As per the regulator SEBI guidelines for mutual Funds are required to publish the NAV of the
schemes at least once a week and into leading newspapers.

22
 HDFC Mutual Fund
HDFC mutual fund has been constituted as a trust in accordance with the provisions of the Indian
trust Act, 1882,as per the terms of the trust deed dated, June 8,2000 with Housing Development
Finance Corporation Limited (HDFC)and Standard Life Investments Limited as the Sponsors or
settlers and HDFC Trustee Company Limited as the Trustee. The Trust Deed has been registered
under the Indian Registration Act, 1908. The mutual fund has been registered with the SEBI on
the registration code MF/044/00/6 on June 30, 2000.

HDFC Asset Management Company Limited (AMC)

HDFC Asset Management Company Limited (AMC) was incorporated under the companies
Act,1956, on December 10,1999, was approved to act as an ASSET MANAGEMENT
COMPANY for the HDFC Mutual Fund by SEBI vide its letter dated July 3,2000.
In terms of the investment management agreement the trustee has appointed HDFC Asset
Management Company Limited to manage the mutual funds.as per the terms of the Investment
Management Agreement, the AMC will conduct the operation of the Mutual Fund and manage
Assets of the schemes, including the schemes launched from time to time.

Funds Managed by HDFC Mutual Fund

 Equity Fund
 Balanced Funds
 Income Fund

Achievements of HDFC
 HDFC Asset Management Company (AMC) is the first AMC in India to have been assigned the
CRISIL Fund House- 1 rating.
 This is the highest fund governance and process quality rating which reflect the highest
governance levels and fund management practices at HDFC AMC.
 It is only fund house to have been assigned this rating for 2 years in succession.

Product Labeling
This product is suitable for investors who are seeking:

23
 to generate long-term capital appreciation/income
 investment predominantly in Large-Cap companies

 investors should consult their financial advisers if in doubt about whether the product is
suitable for them

24
COMPARING RETURNS OF HDFC MUTUAL FUND FOR LAST 5 YEARS
Investment Info

Investment Objective: the investment objective of the scheme is to generate long-term capital
growth from an actively managed portfolio of equity and equity-related securities icluding euity
derivatives.

FUND TYPE ENTRY LOAD AVERAGE

ASSET SIZE (RS.
CR.)

Open Ended Nil 81301.26

Investment plan Exit load Minimum

investment

Growth If redeemed between 0 year to 1 5000

year; exit load is 1%

Launch Date Fund Manager Last Dividend

3-04-2019 Chirag Setalvad 000

Benchmark Email/website Bonus

S&P BSE200 cliser@hdfcfund.com/www.hdf

cfund.com

AMC Name

HDFC Asset
Management Company
Limited

As per the above chart you can see HDFC Mutual Fund is open ended. Its average asset size is
3.35lakh crores. HDFC introduced small and mid-cap growth fund in 2008. Since then it has
given good returns.

25
PERFORMANCE OF DIFFERENT MUTUAL FUNDS

26
Portfolios Holding Of HDFC Mutual Fund

27
Asset under Management Movement

The Below Graph shows the Variation in the assets under management

Top Sector Holdings & Percentage Allocation

28
Market Capitalization

Over the past few months, HDFC Small Cap Fund has increased its exposure to cash. The cash
levels have increased from about 6% a year ago to nearly 20% in January 2018. As in February
2018, the cash level stands at 15%. Given the high valuations in the mid- and small-cap space,
the fund management has reduced the exposure to mid-caps. Midcaps initially formed about 50%
of the portfolio a year ago. However, the allocation has now dropped to around 40%. The
weightage to small-caps has ranged between 35%-40% over the past 12 months. Large-caps
account for a very small portion of the assets, hovering under 10%.

29
HDFC Mutual Fund NAV

The mutual fund NAV denotes a price at which units of a mutual fund can be bought or sold.
The market value of a fund’s holdings, less expenses is the net asset value. Per unit NAV is calculated by
dividing the net asset value of the mutual fund schemes by the number of units outstanding on the
valuation date.
The below NAV calculation shows the returns of HDFC Mutual Funds with the help of the graph

30
Performance Analysis of HDFC Mutual Fund

SBI MUTUAL FUND

SBI Mutual Fund Private Limited is a joint venture between "The State Bank of India and Societe
Generale Asset Management (France).the fund managers over Rs.42, 100 crores of Assets and has a
diverse profile of investors actively parking the investment across 38 active schemes.

At SBI mutual fund we know that every investor has unique financial goals and requires a different set of
products. This is why we have a wide range of schemes that fulfills every kind of investor’s requirements.
Each scheme is managed by devising a different strategy which is reflective of the investors profile and
carries with different risks and rewards.

31
Vision: "To be the most preferred and the largest fund house for all asset classes, with the consistent
track record of excellent returns and best Anderson customer service product innovation technology and
HR practices."

SBI funds management has emerged as one of the largest player in India advising various financial
institutions, pension funds, and local and international asset management companies.

SBI funds makes one of the largest investment management firms in India managing investment
mandates of over 5.4 million investors.

EQUITY FUNDS & SCHEMES

The primary objective of the equity asset class is to provide capital growth or appreciation by investing in
the equality and equity related instruments companies over medium and long term.

There is range of schemes available which fulfill every kind of Investors requirements. Each scheme
provides different strategy which is reflective for the investors profile and carries with it different risks
and rewards.

1) Equity Schemes

2) Debt/Income Schemes

32
3) Liquid Scheme

4) Hybrid Schemes

5) Fixed Maturity plans

6) Exchange Traded Schemes

We would be looking at only Equity Schemes.

Equity/ Growth Funds

1) SBI Magnum Equity Fund

2) SBI Magnum Global Fund

3) SBI Blue chip Fund

4) SBI Magnum Multicap Fund

5) SBI Magnum Multiplier Fund

6) SBI Small and Midcap Fund

7) SBI Magnum Midcap Fund

8) SBI Emerging Businesses Fund

Sectoral Funds

1) SBI Contra Fund

2) SBI FMCG Fund

3) SBI IT Fund

4) SBI Pharma Fund

5) SBI Banking & Financial Services Fund

Thematic Funds

1) SBI Magnum COMMA Fund

33
2) SBI Infrastructure Fund

3) SBI PSU Fund

ELSS Fund

1) SBI Magnum Tax Gain Scheme 1993

2) SBI Tax Advantage Fund-Series 1

3) SBI Tax Advantage Fund- Series 2

4) SBI Tax Advantage Fund- Series 3

Index Fund

1) SBI Index Nifty Fund

Market Neutral Strategy

1) SBI Arbitrage Opportunities Fund

But we will be only comparing the funds in SBI Small and Midcap funds.

SBI small and midcap fund is an open ended equity scheme and Palm primary invest in small and midcap
equity and equity related securities of the companies in the small and midcap segments. The portfolio
welcome price of maximum of 30 stocks.

This product is suitable to the investors who are seeking.

 Long term capital appreciation

 Investment in diversified portfolio in predominantly in equity and equity related for small and
mid-cap companies.

34
Investors should consult financial advisors if in doubt about whether the product is suitable for
them.

Objectives of the Schemes

The scheme seeks to generate income and long term capital appreciation by investing in a diversified
portfolio of predominantly in equity and equity related securities of small and midcap companies. There
can be no as variance the investment objective of the scheme will be realized.

35
Investment in Asset Backed Securities (Securitized Debt) will not exceed 10% of the net assets of
the scheme. The scheme will not invest in foreign securitized debt.

Comparing Returns of SBI Mutual Fund for Last 5 Year

FUND Type Entry Load Average Asset

size(Rs.cr.)
Open Ended Nil 2186.79 Cr as on 31 May
2019
Investment plan Exit Load Minimum Investment(Rs)
Growth If redeemed between 0 year to 1 5000
year; Exit Load is 1%
Launch Date Fund Manager Last Dividend
09-2009 Mr. R.Srinivasan 00
Benchmark Email/website Bonus
S&P BSE200 partnerforlife@sbimf.com
AMC Name
SBI Fund Management

36
Private Limited

As per the above chart you can see SBI Mutual Fund is open ended. Its average asset size is 2186.79
Crores. SBI introduced small cap and mid cap growth in 2009. Since then it has given good returns.

Performance of the SBI Mutual fund

37
Portfolio Holdings as on 31/03/2019

Stock Name % of Total AUM

INFOSYS LTD. 27.32

HCL TECHNOLOGIES LTD 8.67

BHARTI AIRTEL LTD 7.16
TATA CONSULTANCY SERVICES LTD 6.13
TECH MAHINDRA LTD 6.42
INFO EDGE (India)LTD 5.60
CYIENT LTD 5.30
COGNIZANT TECHNOLOGY SOLUTIONS 4.84
CORPORATION
NIIT TECHNOLOGIES LTD. 4.55
CASH, CASH EQUIVALENT AND OTHERS 4.33

38
Asset under Management

Asset Allocation done in various Companies

39
Top Sector Holding & Asset Portfolio

40
From the above table you can see that the market capitalization of small cap fund is 45.66% is
more as compared with mid-cap which is 44.03%.

SBI Mutual Fund NAV

The mutual fund NAV denotes a price at which units of a mutual fund can be bought or sold. The market
value of a fund’s holdings, less expenses is the net asset value. Per unit NAV is calculated by dividing the
net asset value of the net asset value of the mutual fund schemes by the number of units outstanding on
the valuation date.

41
In the above chart, the fund of SBI small cap is -0.58% as on 19th July, 2019 whereas the S&P
BSE Small Cap is -13.41%.

LITERATURE REVIEW

1) Name of the Book: - Mutual Funds in India

Author: - D.V.Ingle

ISBN no- 9788177083323

Publishing Year: - 2013

Abstract- This book provides an in-depth account of the functioning of mutual fund industry in India.
The author D.V.Ingle has described everything about Mutual Funds in India and why it is useful for small
investors who cannot directly invest in stock market and also when the mutual funds where created. This
book describes the journey of mutual funds in India.

2) Name off the Research paper: - comparative study of mutual funds of select Indian companies

Author: - Mr. Sunil M.Adhav / Dr. Pratap M Chauhan

42
 ISSN NO: - 2394-1537

Publishing Year: - 2015

Abstract: - India's mutual fund market has witness phenomenal growth over the last decade. The
consistency in the performance of mutual funds has been a major factor that has attracted many
investors. The present research is an attempt to study comparative performance of mutual funds of
selected Indian companies. The study focus on mutual fund schemes of selected Indian companies
comprising equity Debt and hybrid schemes. The total of 390 schemes comprising of 178 equity mutual
funds 138 Debt schemes and 74 hybrid schemes are selected for the study. The performance of selected
Indian companies mutual fund is analyzed with the help of Return, risk. Selected Mutual Funds are
compared with their respective benchmark.

3) Name of the Research Paper: - A study of Mutual Funds in India

Author: - Ms. Shalini Goyal/ MS Dauli Bansal

ISSN NO: - 2229-5518

Publishing Year: - 2013

Abstract: - This paper helps us to understand the study of the mutual funds in India. This paper also
says where and how we should invest Mutual Fund and why it is dangerous to directly invest in stock
market as you might have to face loss. Investing in mutual funds helps you to diversify your risk. This
study was conducted to analyze and compare different types of mutual funds in India.

4) Name of the Research Paper: - Investors preference towards mutual fund and future investments

Author: - Y Prabhavathi, N T Krishna Kishore

ISSN NO: - 2250-3153

Publishing Year: - 2013

Abstract: - The advent of mutual funds change the way the world invested their money. The start of
mutual funds given an opportunity to the common man 2 hope of high returns from their investments
when compared to other traditional sources of investment. The main focus of the study is to understand
the attitude, awareness and preferences of mutual fund investors. Most of the respondents prefer
systematic investment plans and got the source of information primarily from banks and financial
advisors. Investors preferred Mutual Funds mainly for professional fund management and better returns
and assessed funds mainly through Net Asset Values and past performance.

43
5) Name of the Research Paper: - A Study on Indian Mutual Funds Equity Diversified growth Schemes
and their Performance evaluation

Author: - Dr.D.S.Chaubey

ISSN NO: - 2249-1619

Publishing Year: - 2011

Abstract: - Indian mutual fund industry has experienced tremendous growth due to infrastructure and
also supported by high saving of funds. After liberalization and globalization of Indian economy, market
witness huge crowd towards the opinion of investing in mutual funds but investment in a particular
funds needs a lot of specification like investor's objectives cost, availability of funds, risk and return
factors etc. and thus invite fundamental study for better future and growth. This paper aims to know
how the performance of mutual funds is assessed and ranked after analyzing the NAV and their
respective returns so as to measure investment avenues.

6) Name of the Research Paper: - Investor awareness and perception about mutual Funds

Author: - Simran Saini/DR Bimal Anjum

ISSN NO: - 223157805780

Publishing Year: - 2011

Abstract: - Indian mutual fund has gained popularity in last few years. The present study analysis the
mutual fund investment in relation to investors behaviour.Investors opinion and perception has been
studied relating to various issues like type of mutual fund scheme main objective behind investing in
mutual fund scheme, role of financial advisors and brokers, investors' opinion relating to factors that
attract them to invest in mutual funds, sources of information, deficiencies in services provided by the
mutual fund managers, challenges before the Indian mutual fund industry.

44
 RESEARCH METHODOLOGY

1) Research Design:-

a) Problem Defining: - In a competitive market there are multiple mutual funds working in the Indian
market. It is necessary to know mutual fund as the performance of the mutual fund decides the future of
Mutual Fund Company. In my study I have compared return of 5 years of the mutual funds that is HDFC
Mutual Funds & SBI Mutual Funds.

b) Types of Research: - This research is qualitative and analytical in nature. Qualitative research talks
about the quality of the research work & analytical research is concerned with determining validity of
hypothesis based on analysis of facts collected.

c) Data Collection Design:-

1) Sources of Data

Primary Data: - I have used questionnaire as primary source for collecting data for my study.

45
 Secondary Data: - I have collected secondary data from various mutual funds books from various
mutual fund websites.

2) Sampling: - It represents the whole population. Odisha process of choosing samples from whole
population. I have chosen some people who have invested in mutual funds.

3) Sampling Size: - at represents how many candidates you have chosen to fill up your questionnaire. I
had chosen sample of 50 candidates.

4) Sampling Technique: - Ocean air sampling is something that is sent to the candidate who wants to
invest in mutual funds. By Questionnaire you can understand people's test and preference, so it is easy
to convince.

5) Data Interpretation: - Data interpretation is that in which we analysis the whole collected data and
try to keep it in simple words that is understable.

DATA COLLECTION

Primary Data

QUESTIONNAIRE

A Study of preference of the investors for Investment in mutual funds

1) Personal Details

a) Name:-

b) Address:-

46
c) Age:-

d) Phone

2) Educational Qualification

a) Graduation/PG b) Undergraduate c) Others

3) Occupation

a) Govt Servant. b) Pvt Sector C) Business d) Others

4) What is your Monthly family Income Approximately?

a) Upto to Rs 10000 b) Rs 10000 to 150000 c) Rs 150001 to 20000

d) Rs 20001 to 30000 e) Rs 30000 & Above

5) What kind of investment you prefer most?

a) Savings account b) Fixed Deposit c) Insurance d) Mutual Fund

e) post office-NSE. f) Shares/Debentures g) Gold/Silver h) Real Estate

i) PPF J) PF

6) While investing your Money, which factor you prefer most?

a) Liquidity b) Low Risk c) High Return d) Company Reputation

7) Have you ever Invested Money in Mutual Fund?

a) Yes b) No

8) Where do you find yourself as mutual fund investor?

a) Totally Ignorant b) partial knowledge of mutual funds c) Aware only of specific

Schemes in which you invested d) Fully aware

9) In which kind of mutual fund you would like to invest?

a) Large Cap b) Mid Cap c) small cap

47
10) How do you come to know about mutual fund?

a) Advertisement b) peer group c) Banks d) Financial advisor e) option 5

11) What future of the mutual funds allures you most?

a)Diversification b) Better return and safety c) Reduction in risk and transaction

Cost d) Tax benefit e) option 5

12) Which mutual fund scheme have you used?

a) Open ended b) Close ended c) Liquid fund d) Mid Cap

e) Regular income fund f) Growth fund g) long cap h) Sector fund

i) Option 10

13) If not invested in mutual fund than why?

a) Not aware of MF b) Higher risk c) Not any specific reason reason

d) option 4

14) In which mutual Fund have you invested?

a) SBI MF b) UTI c) HDFC MF d) Reliance e) ICICI Prudential Funds

e) JM Mutual Fund f) others specify

15) When you invest in mutual fund which mode of investment will you prefer?

a) One time Investment b) Systematic Investment Plan (SIP)

48
 FINDINGS & SUGGESTION

1) Educational Qualification

This Graph show 86.7%, the educational Qualification of the Investor have completed
Graduation.

2) Occupation

49
This graph shows that 80% of the Investors are from private sector and 20% from Business

3) What is your monthly Family income approximately?

This graph shows 40% of monthly income of investors is above 20000

& 26.7% of the investors have monthly income of 10001 to 15000 & upto 10000.

50
 4) What kind of Investment you prefer most?

This graph shows

40% Investors
prefer to deposit
their money in
savings account
whereas 20%
deposit their
money in fixed
deposit and
13.3% each in
Shares/Debentur
es and Gold/
silver and 6.7% in
Provident Fund.

5) While investing your Money, which factor you prefer most?

51
 This graph shows 53.3% of Investors look for High return whereas 33.3% of Investors look for
Low risk and 13.3% of Investors look for Liquidity.

6) Have you ever Invested Money in Mutual Fund?

This graph shows that 53.3% had invested in Mutual fund and rest 46.7% had not invested.
7) Where do you find yourself as Mutual Fund Investor?

52
This graph shows that 33.3% each of the Investor have Partial knowledge of mutual funds, fully aware
and aware only of specific schemes in which you invested.

8) In which kind of Mutual Fund you would like to invest?

This graph shows that 40% each of Investor prefer Large Cap and mid cap and 20% prefer Small Cap.

9) How did you come to know about Mutual Fund?

53
This graph shows us the 33.3% of Investor who come to know about mutual funds through
Advertisement and Banks where as 20% is financial advisor and 13.3% is option 5.

10) What Future of the Mutual Funds allures you most?

This graph shows the 46.7% of investors who invest in mutual funds so that they get better return and
safety whereas 26.7% of investors have reduction in risk and transaction and 13.3% mutual funds have
better return and safety and tax benefit.

11) Which Mutual Fund scheme have you used?

54
This graph shows that 20% each of the investors prefer growth fund and option 10 scheme 13.3% each of prefer
long cap and regular income fund and so on..

12) If not invested in mutual fund than why?

This graph represents that 46.7% people follow option 4 whereas 33.3% people do not choose because of
no specific reason and 13.3% think of higher risk 6.7% people are not aware of Mutual fund.

13) In which Mutual Fund have you invested?

55
This graph shows that 46.7% of Investors want to invest in JM Mutual Fund whereas 40% of the investor wants to
invest in others and 13.3% in Reliance.

14) When you invest in Mutual Funds which mode of investment will you prefer?

This shows the percentage of investors who are willing to Invest in Systematic Investment Plan (SIP) and 20% in one
time Investment.

56
 SUGGESTION

Suggestion to the Mutual fund Investor

1. Understand the purpose of investment: the first point to analyse before investing in a fund is to
find out whether objective matches with the scheme. If there is a mismatch in the scheme the investors
would be affected with the probable returns. For example the schemes that invest in large cap stocks is
not suitable for conservative investors. He should first try to invest in small and midcap funds. Similarly
he should pick up schemes that will specify his investment. Examples pension plans, children's plants,
and sector specific schemes. These are the schemes from where he can invest for the future.

2. Low Risk Tolerance: The investors with low risk tolerance should invest in small and mid-cap
schemes as there are relative Lee safer when compared to schemes like equity. Aggressive investors can
go for equity investments and can opt for schemes that invest in specific industry or sector.

3. Track record: investors should go through schemes track record performance against relevant
market benchmarks and its competitors.

4. Period of Investment: To get good returns on their Investments, the investors should hold the
returns for longer periods that are for 3 years to 5 years in order the schemes to generate good returns.

57
5. Cost Factors: Though the AMC is regulated, one should look at expense ratio of the fund before
investing. This is because money is deducted from the returns. A higher entry load or exit load will eat
into the returns. So you have to look at the cost factors before investing.

6. Points to be considered while departing from the Scheme: Investor should sell or redeem or
repurchase the proceeds within 10 days of redemption or repurchase. Most funds charge exit load when
the period of exit is less than 6 months. You should sell your funds when one fund is taken over by other
fund. You may also exit when your expenses on your scheme has increased.

7. Diversification: The most the amount the investors invest, the greater is the ability to a afford
diversification amount different asset classes and investment styles. Asset allocation is the way in which
one gives weightage to each asset classes. Each asset class has its own characteristic in terms of
fluctuation.

8. Continuous Monitoring: Investors should continuously monitor their portfolio and revised by
updating according to market position that their returns can be maximized.

Other factors to be considered while investing: investors should look for top performing Assets and focus
on funds latest performance. A common mistake nowadays investors do is they buy latest schemes
which have no previous history as they give good returns. one should look at the NAV while buying the
funds so that good NAV can give you good returns.

9. Starting small for small time investor: First time mutual fund investors are advised to go small on
their Investments. investors should invest in small and midcap companies and can wait for the go to
returns once they are satisfied, this should go for diversification of the funds.

10. Tax saving funds: when markets are up, it is advisable to invest in tax saver which are giving good
returns compared too many other schemes.

58
 BIBLIOGRAPHY

Website

1. www.sbimf.com

2. www.hdfcmf.com

3. www.amfiindia.com

4. www.mutualfundsindia.com

5. www.researchgate.com

6. Books on Mutual Funds in India (D.V.Ingle)

59
 CONCLUSION

Mutual fund industry now represents perhaps most appropriate opportunity for most investors. The
financial market is the most sophisticated and complex. Investors need to require to invest the in the
mutual fund industry. Mutual fund industry also gives good returns if the markets are high and you can
also suffer losses if the market does not do well or while investing fund managers make some mistakes
during investment of mutual funds.

Mutual fund returns are compared on the basis of performance of the stock market. If the stock market
do well then the phone on in which you have invested will also do well. As a market at diversify at the
loss is minimal.

In my above research I had compared SBI Mutual Fund and HDFC mutual fund. I have compared 5 years
returns which both the mutual funds have given good returns after a specified period.

Since Inception SBI Mutual Fund has given good returns of 20% where HDFC fund is has given a return of
only 14%.

But still investors prefer to invest the money in private Mutual Funds in the long run as they would feel
that they would get good returns.

60
But looking as at both Mutual Funds 3 year ratio SBI Mutual Fund has given a good return of 42% virus
HDFC given return or 25%.

"So as per my suggestion it is best for investor to invest in SBI Mutual Fund as it has given good returns".

61