DISSERTATION SYNOPSIS ON

“Mutual Fund Analysis in Delhi/NCR”

Under the guidance of

Faculty Mentor: Student Name:

Neeraj Sanghi Harshit Goswami

Professor BM-019071
INTRODUCTION
A mutual fund is a trust that collects the savings of a number of investors who share a common
financial goal and pool it together to create a larger resource of money. The money thus collected
is invested by the fund manager in different types of securities depending upon the objective of
the scheme. These could range from shares to debentures to money market instruments. The
securities could be further subdivided into technology securities, pharmaceutical securities,
FMCG securities etc. The income earned through these investments and the capital appreciation
realized by the scheme are shared by its unit holders proportionately i.e. on the basis of the
number of units owned by them (pro rata).

Thus, mutual fund is the most suitable investment for the common man as it offers an
opportunity to invest in a diversified, professionally managed portfolio at a relatively low cost.

Anybody with any surplus money that can be invested, even as little as a few thousand rupees
can invest in mutual funds. Each mutual fund scheme has a defined investment objective and
strategy. The team undertakes this in the most professional manner.

OBJECTIVE OF THE STUDY

 The primary objective of the project is to gain detailed insight into this industry.
 The primary objective of the research was to determine the perception of the Indian
investor towards mutual funds.
 To analysis the performance of top mutual funds in India.

LITERATURE REVIEW
S.Narayan Rao, evaluated performance of Indian mutual funds a bear market through relative
performance index, risk- return analysis, treynor’s ratios, sharpe’s ratios, sharpe’s measure,
Jensen’s measure, and Fama’s measure. The study used 269 open-ended schemes (out of total
schemes of 433) for computing relative performance index. Then after excluding funds whose
returns are less than risk-free returns, 58 schemes are finally used for further analysis. The results
of performance measures suggest that most of mutual funds schemes in the sample of 58 were
able to satisfy investor’s expectations by giving excess returns over expected returns based on
both premium for systematic risk and total risk.

Bijan Roy, conducted an empirical study on conditional performance of Indian mutual funds.
This paper uses a technique called conditioned performance evaluation on a sample of eighty-
nine Indian mutual fund schemes. This paper measures the performance of various mutual funds
with both unconditional and conditional form of CAPM, Treynor-Morton model. The effect of
incorporating lagged information variables into the evaluation of mutual funds manager’s
performance is examined in Indian context. The results suggest that the use of conditioning
lagged information variables improves the performance of mutual funds schemes, causing
alphasto shifts towards right and reducing the number of negatives timing coefficients.

Kshama Fernandes (2003) evaluated index fund implementation in India. In the paper, tracking
error of index funds in India is measured. The consistency and level of tracking errors obtained
by some well-run index fund suggests that it is possible to attain low levels of tracking error
under Indian conditions. At the same time, there do seem to be periods where certain index funds
appear to depart from the discipline of indexation.

RESEARCH METHODOLOGY:

A. Research Design:
The research design of this study is descriptive research design.

B. Sample Design:
I. Sample Unit:
In this study I have taken those people who have invested in mutual funds as a
sample unit.

II. Sample Size:

I have taken 100 responses as a sample size to analyze my data.
 III. Sampling Technique:
I have used convenience sampling technique in this study.

IV. Sampling Area:

Sampling area in this study belongs to Delhi/NCR.

C. Data Collection:
i. Sources:
I have used primary and secondary data as a source of my data collection.
There are mainly two methods of primary data collection i.e. survey method
and observation method. I have used survey method for data collection in my
research.

ii. Tools:
For this research I choose questionnaire as a tool for primary data collection
and internet for the secondary data collection.

D. Data Analysis:
i. Statistical Tools/ Techniques:
Statistical tool/ technique which I have used to analyze my primary data is
Microsoft Excel.

ii. Inferences:
In order to draw out meaningful conclusions from data collected I have used
Microsoft excel tools like pie charts bar graph etc.

EXPECTED OUTCOME:
 To understand the financial behavior of the mutual fund investors in connection with the
preferences of brand (AMC), Products, Channels etc.
 To understand how mutual funds work.
 To see how much they invest in mutual funds.