PERFORMANCE ANALYSIS & INVESTORS

ATTITUDE TOWARDS MUTUAL FUNDS SCHEMES

CHAPTER I
INTORDUCTION TO THE STUDY

According to the Financial Industry Regulatory Authority (FINRA), "a mutual fund is an
investment company that pools money from many investors and invests it based on specific
investment goals." Individuals that invest in mutual funds have the right to receive profits the
funds earn.

Analyzing the performance of a mutual fund starts with understanding how the investment
company is putting the pooled assets of you and other investors to work. The starting point for
mutual-fund investors is the fund's prospectus. The prospectus contains information on the fund's
strategy and investment purpose, such as providing income or both growth and income, or
preserving capital.

Mutual fund is calculated on the basis point of Net Asset Value of investments by funds. The fair
valuation ensures that realistic prices are used to compute the value of the portfolios. Uniform
valuation practices ensure that everyone can compare the performance of different schemes
without variations.

A fund’s performance can be judged with respect to investors’ expectations. Investor has to
define his expectations in relation to certain indicators on what is possible to achieve or moderate
this with comparable investment alternatives available in the market.

Mutual funds are seemingly the easiest and the least stressful way to invest in the stock market.
Quiet a large amount of money has been invested in mutual funds during the past few years. Any
investor would like to invest in a reputed Mutual Fund organization. Understanding the attitude
of investors on their investment would help the company to increase their profits. In wealth
maximizer they believe that the investor’s attitude would result in profits.

The study revealed that the investors have a positive attitude towards their investments. The
investors mainly look into the returns earned from the investment. It was found that the
awareness towards the risk related to the investment was relatively low. Based on the analysis
Suggestions for improvement are provided.
 ABSTRACT

The project is undertaken at Wealth Maximizer Investment Services (P) ltd, under the title of
“Performance Analysis & Investor Attitude towards Mutual Funds Schemes”. The project helped
in gaining knowledge in the area of finance management, which enlightens various procedures to
guide investors.

The study aims at analyzing the performance & investors attitude towards Mutual Funds
schemes.

The types of research design are analytical research and descriptive research. The required data
are been generated using a past data information and also using a research instrument called the
questionnaire, to a sample of 200 investors are simple random sampling.

The tools used for the analysis include Net Asset Value, Percentage Analysis, chi-square, and
correlation. The analysis was divided into 2 phases which are Personal Factors and Investment
Factors. The study revealed that the performance & the investors have a positive attitude towards
their investments.

After analyzing the data through interpretation, suggestions, recommendations are formulated
from the summary of findings.
 OBJECTIVE OF THE SYUDY

Primary objective:

 To study on “Performance Analysis & Investors Attitude towards Mutual Fund schemes”
with special reference on Wealth Maximizer Investment Services ( India ) Private Ltd ,
Chennai.

Secondary objective:

 To compare the performance of the selected funds vis-à-vis the benchmark index.

 To find out the returns generated by the funds are purely attributable to market movement
or individual fund performance.

 To evaluate the performance of selected mutual fund schemes based on portfolio and
asset valuation.

 To Measure the level of investors attitude towards Mutual Funds schemes.

 SCOPE OF THE STUDY

 Performance analysis of mutual funds investments are dynamic therefore, it is necessary

to observe, study and analyze it continuously in order to make effective decision in
respect of some crucial factors[like, scrip price vs. industry moments].

 The study on performance analysis helps to find out the best plans from selected funds
list.

 The study will be useful for the company to suggest best funds to their clients and give
best portfolio maintenance in the competitive industry.

 The research study undertaken does not probe too much about whether the respondents
have a very fine insight into mutual funds. The research involves only a general study
related to the investment attitude of investors towards mutual funds. The research would
reveal results regarding the investment attitude of various investors about the particular
mutual funds and thus in turn helps the organization to identify the attitude of various
investors and to improve the marketing of mutual funds.

 The study has been done with a motive to change the attitude of the investors and help
them gain more knowledge on their investment.
 NEED OF THE STUDY

 To know about the benchmark index levels and how it is fluctuate.

 To know about the performance level of the mutual fund schemes in the different market
scenario.

 To know about the investor attitude among the selected mutual fund schemes.

 To analysis the market fluctuation by using technical analysis, this may give better lead
to investors.

LIMITATION OF THE STUDY

 The data collected from this company cannot be applied for any other related study in
other company

 The study and the conclusion drawn from this study cannot be generalized to all
situations.

 The analysis can be done past 5 years (2006-2010) and selected large cap funds only.
 CHAPTER II
INDUSTRY PROFILE

MUTUAL FUNDS INDUSTRY IN INDIA

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the
initiative of the Government of India and Reserve Bank of India. The history of mutual funds in
India can be broadly divided into four distinct phases.

First Phase – 1964-87

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 de-linked from the RBI and the Industrial Development
Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The
first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700
crores of assets under management.

Second Phase – 1987-1993 (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 Can
bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual
Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established
its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990.At the end
of 1993, the mutual fund industry had assets under management of Rs.47,004 crores.
Third Phase – 1993-2003 (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 a wider 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 erstwhile Kothari Pioneer (now merged with
Franklin Templeton) was the first private sector mutual fund registered in July 1993.The 1993
SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual
Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund)
Regulations 1996.

The number of mutual fund houses went on increasing, with many foreign mutual funds setting
up funds in India and also the industry has witnessed several mergers and acquisitions. As at the
end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805 crores. The
Unit Trust of India with Rs.44,541 crores of assets under management was way ahead of other
mutual funds.

Fourth Phase – since February 2003

In February 2003, following the repeal 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 assets
under management of Rs.29,835 crores as at the end of January 2003, representing broadly, the
assets of US 64 scheme, assured return and certain other schemes. The Specified Undertaking of
Unit Trust of India, functioning under an administrator and under the rules framed by
Government of India and does not come under the purview of the Mutual Fund Regulations.

The second is the UTI Mutual Fund, sponsored by SBI, PNB, BOB and LIC. It is registered with
SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile
UTI which had in March 2000 more than Rs.76,000 crores of assets under management and with
the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and
with recent mergers taking place among different private sector funds, the mutual fund industry
has entered its current phase of consolidation and growth.
GROWTH IN ASSETS UNDER MANAGEMENT

COMPANY PROFILE

Wealth Maximizer introduces itself as a Financial Advisors which deals with all type of
investment products and we offer personalized and professional service to Individual customers,
High Net worth Individuals (HNI’s), Corporates, NRI’s etc.

Its corporate office is at T.Nagar, it has built up with good infrastructure and nearly thirty staff
members are working with in it.

It offer best professionalized service and this is their main strength, since all their employees
having sound knowledge in this arena.

For the past four years they are running the Company with full satisfaction of their customers.
And they proudly say that it is one of the company done their business aggressively during the
market crash and so many has closed their doors during the crash but they always face all the
challenges and opened even during the crash due to Global down turn and other reasons.

The company believes in dreaming big. Dreaming inspire them to grow this excel. Customer
Service and Customer Satisfaction is their main objective and believe that nothing can or should
stop us from realizing their dreams.

The company takes pride in giving service to their customers–both individuals and institutions –
by whom known for strong professionalism and work ethics.

Mission of the Company

• Their mission is to forge strong, sustained relationships with their clients by creating
value for them.

• It does this by gaining a thorough insight into a client’s financial needs and objectives.

• Attuned to the fact that no two clients are the same, their approach to investing
underscores the need for personalized solutions in today’s financial markets.

• The company believes in longer-term investment horizons and identifying deep-value

opportunities.

• In practical terms this equates to acquisition of assets which are off their fundamental or
historic valuations, often against the current, short-term market cycle.

• This investment philosophy is reflected in the various services offered by their Wealth
and Portfolio Management advisors.

Managing Director

Mr. D. Benjamin Gnanaraj,

Our Managing Director has a strong background in commerce coupled with Management
Qualifications. He has served with number of companies and prior to floating his own company
worked with some leading financial consultants. Mr. Gnanaraj brings a wealth of experience to
his position and has many laurels to his credit in his previous employments.

Our Board of Directors:

  Mr. P. Surendran, a Master's Degree holder in Financial Services with professional
qualifications in Human Resource Management, he in addition to being the branch head
handles the human resource function of the organization. Mr. Surendran brings over five
years of experience to his functions.

 Mr. D. Paul Arokiaraj, a Master's Degree holder in Accounts background. He in addition

to being the accounts head handles the accounts of the organization. Mr.Arokiaraj brings
over seven years of experience to his functions

Our Strengths

 Qualified and Experienced team.

 Professional Outlook.
 Courteous Service.
 Strong Research and Analytical Skills.
 Wide Network.
 Client Centric Recommendations

Wealth Maximizer as a Corporate Advisor

Our quality professional team and our work-oriented dedication have propelled us to offer value-
added corporate financial services and act as a professional navigator for long term growth of our
clients.
We use a consultative approach to provide comprehensive solutions for investment professionals,
institutions, corporations and individual investors.

Our Services

We take Great Pleasure that we are dealing in following Services:

♦ Mutual Funds Capital Gain Bonds (54EC)

♦ G.O.I Bonds Post Office Schemes
♦ Equity Broking PAN Card Services
♦ Company Deposits Tax Saving Bonds
♦ KYC Services Personal Loans
♦ Insurance (Life / General) Fixed Deposits

CHAPTER III

REVIEW OF LITERATURE

 Literature Review is the documentation of a comprehensive review of the published and

unpublished work from secondary sources of data in the areas of specific interest to the
researcher.
  The main aim is to find out problems that are already investigated and those that need
further investigation.

CONCEPTUAL FRAMEWORK

A Mutual Fund is a trust that pools the savings of a number of investors who share a common
financial goal. The money thus collected is then invested in capital market instruments such as
shares, debentures and other securities.

The income earned through these investments and the capital appreciations realized are shared
by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is
the most suitable investment for the common man as it offers an opportunity to invest in a
diversified, professionally managed basket of securities at a relatively low cost. The flow chart
below describes broadly the working of a mutual fund:

Mutual Fund Operation Flow Chart

ORGANISATION OF A MUTUAL FUND

There are many entities involved and the diagram below illustrates the organizational
set up of a mutual fund:
 Organization of a Mutual Fund

ADVANTAGES OF MUTUAL FUNDS

1. Flexibility: The investments pertaining to the Mutual Fund offers the public a lot of
flexibility by means of dividend reinvestment, systematic investment plans and systematic
withdrawal plans.

2. Affordability: The Mutual funds are available in units. Hence they are highly
affordable and due to the very large principal sum, even the small investors are benefited
by the investment scheme.

3. Liquidity: In case of Open Ended Mutual Fund schemes, the investors have the option
of redeeming or withdrawing money at any point of time at the current rate of net value
asset.

4. Diversification: The risk pertaining to the Mutual Funds is quite low as the total
investment is distributed in several industries and different stocks.

5. Professional Management: The Mutual Funds are professionally managed. The

experienced Fund Managers pertaining to the Mutual Funds examine all options based on
research and experience.

6. Potential of return: The Fund Managers of the Mutual Funds gather data from leading
economists and financial analysts. So they are in a better position to analyze the scopes of
lucrative return from the investments.

7. Low Costs: The fees pertaining to the custodial, brokerage, and others is very low.

8. Regulated for investor protection: The Mutual Funds sector is regulated by the
Securities Exchange Board of India (SEBI) to safeguard the rights of the investor.
TYPES OF MUTUAL FUND SCHEMES
Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial position, risk
tolerance and return expectations etc. The table below gives an overview into the existing types
of schemes in the Industry.

Types of mutual find schemes:

 By Structure
 Open – Ended Schemes
 Close – Ended Schemes
 Interval Schemes
 By Investment
 Growth Schemes
 Income Schemes
 Balanced Schemes
 Money Market Schemes
 Other Schemes
 Tax Saving Schemes
 Special Schemes
o Index Schemes
o Sector Specific Schemes

INTERNATIONAL PAPERS:
1. According to the Global Asset Management 2006 Report form Boston Consulting Group,
India-managed assets will exceed more than $1 trillion by 2015. This means an annual growth
rate of 21% for the next nine years. The Indian mutual funds industry has been growing at a
healthy pace of 16.68 per cent for the past eight years and the trend will move further as has been
emphasized by the report. With the entrance of new fund houses and the introduction of new
funds into the market, investors are now being presented with a broad array of Mutual Fund
choices. The total asset under management of Mutual Fund industry rose by 9.45% from
Rs.309953.04 crores to 339232.46 crores in November, 2006 as published by AMFI. In 1987, its
size was Rs.1,000 crores, which went up to Rs. 4,100 crores in 1991 and subsequently touched a
figure of Rs.72,000 crores in 1998. Since then this figure has been increasing tremendously and
thus revealing the efficiency of growth in the mutual fund industry.

2. According to WARREN BUFFET says “Mutual Funds have been gaining lot of importance
in the Indian Capital Market arena from the time of launch. The growth envisioned in the Mutual
Fund Industry has made the Central Government keep a close watch on the issues pertaining to
the mutual fund industry. In this process the various governments have brought in regulations as
regard to Mutual Funds in the Budgets”

3. India's mutual fund industry is one of the brightest spots in an already fast-growing domestic
financial sector.Assets under management have swollen in the past year by almost 60 per cent to
more than Rs5,379bn ($137bn) as the country's once-conservative retail investors have been
attracted to equities by new highs on the stock market says Joe Leahy, Andrew Hill and Paul
Betts.

NATIONAL PAPERS:
 1. Dr. Rao, Narayan, evaluated the performance of Mutual Fund Schemes in a bear
market using relative performance index, risk-return analysis, Treynor’s ratio, Sharpe’s
ratio, Jensen’s measure, Fama’s measure. The study finds that Medium Term Debt Funds
were the best performing funds during the bear period of September 98-April 2002 and
58 of 269 open ended mutual funds provided better returns than the overall market
returns. (www.ssrn.com, paper no.433100 and PP.1-24).

2. “Analyzing The Mutual Fund Performance by Kothari,S.P. and Warner,Jerold

(1997),” examined the empirical properties of performance measures for mutual funds
using Simulation procedures combined with random and random-stratified samples of
NYSE and AMEX securities and other performance measurement tools employed are
Sharpe measure, Jensen alpha, Treynor measure, appraisal ratio, and Fama-French three-
factor model alpha. The study revealed that standard mutual fund performance was
unreliable and could result in false inferences. In particular, it was easy to detect
abnormal performance and market-timing ability when none exists. The results also
showed that the range of measured performance was quite large even when true
performance was ordinary. This provided a benchmark to gauge mutual fund
performance. Comparisons of their numerical results with those reported in actual mutual
fund studies raised the possibility that reported results were due to misspecification,
rather than abnormal performance. Finally, the results indicated that procedures based on
the Fama-French 3-factor model were somewhat better than CAPM based measures.(
www.ssrn.com, paper no.75871 and PP. 1-46)

3. A study by Wolasmal,Hewad on “Performance evaluation of mutual funds” looked

at some measures of composite performance that combine risk and return levels into a
single value using Treynor’s ratio, Sharpe’s ratio, Jenson’s measure. The study analyzed
the performance of 80 mutual funds and based on the analysis of these 80 funds, it was
found that none of the mutual funds were fully diversified. This implied there is still
some degree of unsystematic risk that one cannot get rid of through diversification.

INVESTORS ATTITUDES TOWARD MUTUAL FUNDS

 A strong majority of current fund owners have positive attitudes toward
funds, even though they realize owning funds carries risks and may not
always be profitable. In contrast, those who either owned funds in the
past but do not now or who indicate they do not ever expect to own funds
have far less positive attitudes toward funds. In particular, they are far
less likely to view funds as safe or profitable. Those who do not own funds
but expect to do so in the future have attitudes toward funds that are
neither as positive as those of current owners nor as negative as those of
other non-owners.

This part tries to review the literature available on the mutual funds scheme in India and abroad.
The existing studies on “Investment patterns of investors” are very few and very little
information is available about investor perceptions, preferences, attitudes and behavior. As far as
the mutual funds are concerned, there are hardly few studies undertaken earlier. All efforts in this
direction are fragmented. In spite of this limitation, a few of the parallel and related studies are
reviewed here under.

De Bond and Thaler (1985) while investigating the possible psychological basis for investor
behavior, argue that mean reversion in stock prices is an evidence of investor over reaction
where investors over emphasize recent firm performance in forming future expectations of the
investment.

Nalini and Sasikumar studied about the mutual funds in India. The main objectives of the study
were to analyze how the mutual fund schemes help to mobilize savings from the household
sector. Mutual funds have now made their presence felt in Indian financial market by mobilizing
the savings of household and corporate sectors and deploying the same in the market. The period
of study was 1987 – 91. During this period, the share of mutual funds in the household financial
savings rose from 2.3%to 3.5% and estimates showed that more than 5.6% of the total financial
savings of the Indian public were invested in mutual funds.
Gupta (1994) made a household investor survey with the objective to provide data on the
investor preferences on MF’s and other financial assets. The findings of the study were more
appropriate, at that time, to the policy makers and mutual funds to design the financial products
for the future.

Syama Sunder (1998) conducted a survey to get an insight into the mutual fund operations of
private institutions with special reference to Kothari Pioneer. The survey revealed that awareness
about Mutual Fund concept was poor during that time in small cities. Agents play a vital role in
spreading the Mutual Fund culture; open-end schemes were much preferred then; age and
income are the two important determinants in the selection of the fund/scheme; brand image and
return are the prime considerations while investing in any Mutual Fund.

 Ippolito (1992) says that fund/scheme selection by investors is based on past

performance of the funds and money flows into winning funds more rapidly than they
flow out of losing funds.

 Shanmugham (2000) conducted a survey of 201 individual investors to study the

information sourcing by investors, their perceptions of various investment strategy
dimensions and the factors motivating share investment decisions, and reports that among
the various factors, psychological and sociological factors dominated the economic
factors in share investment decisions.

 Goetzman (1997) states that there is evidence that investor psychology affect
Fund/scheme selection and switching.Anjan Chakarabarti and Harsh Rungta (2000)
stressed the importance of brand effect in determining the competitive position of the
AMCs. Their study reveals that brand image factor, though cannot be easily captured by
computable performance measures, influences the investor’s perception and hence his
fund/scheme selection.
From the above review it can be inferred that Mutual Fund as an investment vehicle is capturing
the attention of various segments of the society, like academicians, industrialists, financial
intermediaries, investors and regulators for varied reasons and deserves an in depth study.
 CHAPTER - IV

RESEARCH METHODOLOGY

Research:

Research is a process of finding solutions to a problem after a thorough study and analysis
of the situational factors.

Research Methodology:
Research methodology is the systematic method in which the research process has to be
carried out.

It concentrates on the following aspects which are necessary for an effective research process.
 Research design

 Sampling design
• Population
• Sampling technique
• Sampling size
• Sample unit
• Source of data
Primary Data
Secondary Data
• Statistical Tools

Research design:

DESCRIPTIVE RESEARCH:

The research design that is adopted in this study is descriptive design. Descriptive research is
used to obtain information concerning the current status of the phenomena to describe,
"What exists" with respect to variables or conditions in a situation.
The focus of this study was on self-reported decisions made by various investors regarding the
investment patterns in mutual funds. Thus it involves Statement of the problem, Identification of
information needed to solve the problem, Selection or development of instruments for gathering
the information, Identification of target population and determination of sampling procedure,
Design of procedure for information collection, Collection of information, Analysis of
information, Generalizations and/or predictions.
Analytical Research:
The researcher has to use facts or information already available, and analyze these to make a
critical evaluation of the material.

SAMPLING DESIGN
Sampling is the process of selecting the sample from the population.

Sample:
A part of the population selected for study in such a way that it represents the population is
called a sample.

POPULATION:
Population refers to the entire group of people, events or things of interest that the researcher
wishes to investigate.

SAMPLING TECHNIQUE:
The sampling technique used is simple random sampling. Simple random sampling is also
known as “probability sampling” or “chance sampling”. Under this sampling design, every item
of the universe has an equal chance of inclusion in the sample.

SAMPLE SIZE:
The number of individuals included in the finite sample is called the size of the sample or sample
size.
The sample size and population size of the project is
Population size: 2000
Sample size: 200
SAMPLE UNIT:
Individuals, families, corporate, partnership firms and sole proprietors were the target respondent
groups from which the data were collected.

SOURCE OF DATA:

Data were collected through both primary and secondary data sources. Primary data was
collected through questionnaires. The research was done in the form of direct personal interviews
and through telephone interviews.

PRIMARY DATA
A primary data is a data, which is collected afresh and for the first time, and thus happen to be
original in character. The primary data with the help of questionnaire were collected from
various investors.

QUESTIONNAIRE DESIGN
Proper care has been taken to ensure that the information needed match the objectives, which in
turn match the data collected through the questionnaire. The basic cardinal rules of Questionnaire
design like using simple and clear words, the logical and sequential arrangement of questions has
been taken care of.

SECONDARY DATA
Secondary data consist of information that already exists somewhere, have been collected.
Secondary data is collected from company websites, other websites, company fact sheets,
magazines and brochures.
STATISTICAL TOOLS

The statistical tools used for primary data

The data collected was tabulated and analyzed with the help of percentage analysis, weighted
average, correlation analysis and weighted average method. This is used to frame a list of
findings which is useful to give suggestions.

Percentage analysis:
The percentage method was extensively used for analysis and interpretation. It can be
generally calculated as follows
No. of respondents favorable
Percentage of respondent = x 100
Total no of respondents
Correlation

The correlation analysis deals with association between two or more variables. The
correlation does not necessary imply causation or functional relationship though the
existence of causation always implies correlation. By itself it establishes only co- variance.
It is used to find the degree of relationship between motivation and work satisfaction.

r= N ∑XY – (∑X) (∑Y)

N∑X2 – (∑X) 2 N∑Y2 __ (∑Y) 2

Here,
 r = co-efficient of correlation.

The statistical tools used for Secondary data

NET ASSET VALUE:

The Term Net Asset Value (NAV) is used by investment companies to measure net assets. It is
calculated by subtracting liabilities from the value of a fund's securities and other items of value
and dividing this by the number of outstanding shares.

REFERENCES

1. Anagh Pal,Cashing in on turmoil, Outlook Money, Oct 8,2008, Pp6

2. Preeti Singh, Investment Management Security Analysis and Portfolio Management,
Himalaya Publishing House, Eleventh Edition, 2003, Pp1
3. http://online.wsj.com/article/SB123137479520962869.html?mod=googlenews_wsj
4. Birenshah, Outlook Money, 30th July 2008, P 30, 56
5. Pradeep Kumar S. and Murugavel A., Karvy the finapolis, Volume2, Issue 3, M
http://www.bseindia.com/downloads/MutualFunds.pdf
6. http://vidyasagar.ac.in/Journal/Commerce/vol12/10th%20Article.pdf
7. http://www.utimf.com/product_services/value_added_services/sip_next.aspx
 CHAPTER – V
ANALYSIS AND INTREPRETATION

ANALYSIS OF ASSET VALUATION FOR PAST 5 YEARS:

1. For the given source of data of frontline equity fund for comparison of asset valuation and
stocks?
TABLE 5.1

PORTFOLIO ASSETS (%)

Reliance Industries Ltd 4.68
TCS Ltd 3.84
ICICI Bank 3.84
Infosys Ltd 3.80
ITC Ltd 3.74
SBI 3.46
Airtel Led 3.45
ONGC Ltd 2.82
TATA Motors Ltd 2.61
BHEL 2.42

SOURCE: SECONDARY DATA

 CHART5.1

INFERENCE:
From the above table, it is inferred that reliance industries holds the maximum asset
allocation compared with other stocks in the portfolio.

2. For the given source of data of large cap equity fund for comparison of asset valuation and
stocks?
TABLE 5.2

PORTFOLIO ASSETS (%)

Infosys 6.15
Reliance 2.62
SOURCE:SECONDARY
ICICI Bank 4.23
DATA
Cipla Ltd 3.51
HDFC Bank 3.14
ITC Ltd 2.98
Oracle Financial Service 2.89
SBI 2.85
Allahabad Bank 2.84
Bajaj Holdings & Investment Ltd 2.84
 CHART5.2

INFERENCE:
From the above table, it is inferred that infosys industries holds the maximum asset
allocation compared with other stocks in the portfolio.

3. For the given source of data of Top 200 equity fund for comparison of asset valuation and

PORTFOLIO ASSETS (%) stocks?

SBI 7.10
Infosys 3.06 TABLE5.3
ICICI Bank 5.52
Reliance 4.47
L&T Ltd 4.13
Bank Of Boroda 3.99
ITC 3.32
Titan Industries Ltd 3.10
ONGC Ltd 2.94
TC Ltd 2.89
 SOURCE: SECONDARY DATA
CHART5.3

INFERENCE:
From the above table, it is inferred that SBI industries holds the maximum asset allocation
compared with other stocks in the portfolio.
4. For the given source of data of select focus equity fund for comparison of asset valuation and
stocks?

TABLE5.4

PORTFOLIO ASSETS (%)

SBI 7.9
Infosys 6.9
TCS 3.9
ICICI 3.9
ITC Ltd 3.7
Airtel 3.6
Reliance 3.3
DR.Reddy’s Lab 3.2
Cipla 3.2
SBI 2.9

SOURCE: SECONDARY DATA

CHART5.4
INFERENCE:
From the above table, it is inferred that infosys industries holds the maximum asset
allocation compared with other stocks in the portfolio.

5. For the given source of data of vision equity fund for comparison of asset valuation and
stocks?

TABLE5.5

PORTFOLIO ASSETS (%)

SBI 8.40
Reliance Industries 4.92
ICICI 4.79
Siemens 4.78
Divi’s Lab 4.77
SOURCE:SECONDARY DATA
Maruthi Suzuki India 4.60
Glaxosmithkline(pharmacy) 4.51
ONGC Ltd 4.42
BPCL9eng) 4.38
Infosys Tech 4.20
 CHART5.5

INFERENCE:
From the above table, it is inferred that SBI industries holds the maximum asset allocation
compared with other stocks in the portfolio.

ANALYSIS OF BENCHMARKINDEX ANALYSIS FOR PAST 5 YEARS:

1. From the given source data sundaram select focus fund performance should be compared
with benchmark index?
 CHART-5.6

Sundaram Select Focus - Retail Plan (D)

INFERENCE:
From the above table, it is inferred that sundaram select focus fund has out performed the
benchmark index.

2. From the given source data frontline equity fund performance should be compared with
benchmark index?

CHART-5.7
Birla Sun Life Frontline Equity Fund - Plan A (G)

INFERENCE:
From the above table, it is inferred that frontline equity fund has out performed the benchmark
index.

3. From the given source data large cap fund performance should be compared with benchmark
index?
 CHART-5.8

Principal Large Cap Fund (D)

INFERENCE:
From the above table, it is inferred that large cap equity fund has out performed the benchmark
index.

4.From the given source data vision fund performance should be compared with benchmark
index?

CHART-5.9
Reliance Vision Fund - Retail Plan (D)

INFERENCE:
From the above table, it is inferred that vision equity fund has out performed the benchmark
index.

5.From the given source data Top 200 fund performance should be compared with benchmark
index?
 CHART-5.10

HDFC Top 200 Fund (D)

INFERENCE:
From the above table, it is inferred that Top 200 equity fund has out performed the benchmark
index.

ANALYSIS OF ANNUAL RETURNS FOR PAST 5 YEARS:

1. From the given source of data annual returns to be compared from frontline equity fund?
TABLE 5.6
YEAR ANNUAL RETURNS
2006 47.70
2007 62.26
2008 -48.50
2009 90.45
2010 18.70

INFERENCE:
From the above table, 2009 year has given the highest returns and 2008 to be the lowest.

2. From the given source of data annual returns to be compared from top 200 equity fund?

YEAR ANNUAL RETURNS

2006 37.44
2007 54.46
2008 -45.35
2009 94.46
2010 25.05

INFERENCE:
From the above table, 2009 year has given the highest returns and 2008 to be the lowest.

3. From the given source of data annual returns to be compared from select focus equity
fund?

YEAR ANNUAL RETURNS

2006 49.24
2007 79.20
2008 -52.44
2009 65.52
2010 12.53

INFERENCE:
From the above table, 2009 year has given the highest returns and 2008 to be the lowest.

4. From the given source of data annual returns to be compared from vision equity fund?

YEAR ANNUAL RETURNS

2006 45.80
2007 56.62
2008 -51.92
2009 82.13
2010 15.26

INFERENCE:
From the above table, 2009 year has given the highest returns and 2008 to be the lowest.
5.From the given source of data annual returns to be compared from large cap equity fund?

YEAR ANNUAL RETURNS

2006 48.13
2007 72.79
2008 -58.83
2009 110.14
2010 21.03

CHART5.15
INFERENCE:
From the above table, 2009 year has given the highest returns and 2008 to be the lowest.

PRIMARY DATA ANALYSIS:

1) Amount Invested in Mutual Funds?
TABLE 5.16
OPTIONS NO OF RESPONDENTS PERCENTAGE
BELOW 100000 85 85
ABOVE 100000 115 115
TOTAL 200 200
SOURCE: PRIMARY DATA

INFERENCE:
From the above table , it is inferred that out of 200 respondents , 115 investors are interest to
investing above 100000 and 85 investors are below 100000.

2) Why do you prefer a Mutual Fund?

TABLE5.17
OPTIONS NO OF RESPONDENTS PERCENTAGE
SAVINGS 66 66
RETURNS 44 44
DIVERSIFICATION 60 60
RISK TOLERENCE 30 30
TOTAL 200 200

INFERENCE:
From the above table, it is inferred that out of 200 respondents, 66 investors are savings
and 30 investors are risk tolerance.

3) What do you think is the basic difference in investing in Mutual funds rather than
Stocks?
TABLE5.18
OPTIONS NO OF RESPONDENTS PERCENTAGE
SAVINGS 77 77
RISK TOLERENCE 42 42
DIVERSIFICATION 48 48
TAX BENEFITS 33 33
TOTAL 200 200

INFERENCE:
From the above table, it is inferred that out of 200 respondents, 77 investors are savings
and 33 investors are tax benefits.

4) In which of the following have you invested?

TABLE5.19
OPTIONS NO OF RESPONDENTS PERCENTAGE
LARGE CAP FUND 59 59
SELECT FOCUS FUND 49 49
VISION FUND 40 40
FRONTLINE EQUITY 31 31
FUND
TOP 200 21 21
TOTAL 200 200

INFERENCE:
From the above table, it is inferred that out of 200 respondents, 59 investors are interest in
large cap fund and 21 investors are top 200.

5) What is the reason for you to select this mutual fund company?
TABLE5.20
OPTIONS NO OF RESPONDENTS PERCENTAGE

REPUTATION 58 58
PROVIDES GOOD 68 68
RETURNS
EXPERTS ADVICE 34 34
FUND MANAGER 22 22
PORTFOLIO 18 18
TOTAL 200 200

INFERENCE:
 From the above table, it is inferred that out of 200 respondents, 68 investors are good
returns and 18 investors are portfolio.

6) Your investment is for a period of ?

TABLE5.21
OPTIONS NO OF RESPONDENTS PERCENTAGE
< 1 year 35 35
1 – 2 year 28 28
3 years 48 48
> years 89 89
TOTAL 200 200
SOURCE: PRIMARY DATA
INFERENCE:
From the above table, it is inferred that out of 200 respondents, 89 investors are interest to
invest more than 3 years and 35 investors are less than 1 year.

7) Do you have complete knowledge of the Mutual Fund Industry?

TABLE5.22
OPTIONS NO OF RESPONDENTS PERCENTAGE
YES 64 64
FULLY 96 96
NOT AT ALL 40 40
TOTAL 200 200

SOURCE: PRIMARY DATA

INFERENCE:
From the above table, it is inferred that out of 200 respondents, 96 investors are fully
know about mutual fund and 40 investors are not at all.
 8) What type of funds have you invested in?
TABLE5.23
OPTIONS NO OF RESPONDENTS PERCENTAGE

EQUITY FUND 83 83
DEBT FUND 42 42
LIQUID FUND 35 35
INDEX FUND 24 24
BALANCED FUND 16 16
TOTAL 200 200
SOURCE: PRIMARY DATA
INFERENCE:
From the above table, it is inferred that out of 200 respondents, 83 investors are interest
invest inequity fund and 16 investors are balanced fund.

9) What is the reason for selecting this Scheme?

TABLE5.24
OPTIONS NO OF RESPONDENTS PERCENTAGE
RETURNS 39 39
PORTFOLIO 38 38
RISK MANAGEMENT 47 47
DIVIDEND 76 76
TOTAL 200 200
SOURCE: PRIMARY DATA
INFERENCE:
From the above table, it is inferred that out of 200 respondents, 76 investors are interest to
invest on based dividend and 38 investors are portfolio.

10) Have you made any investment analysis on the investment?

TABLE 5.25
OPTIONS NO OF RESPONDENTS PERCENTAGE
YES 120 120
NO 80 80
TOTAL 200 200
SOURCE: PRIMARY DATA

INFERENCE:
From the above table, it is inferred that out of 200 respondents , 120 investors are yes and 80
investors are no.

11)Are you sure about the risks related to the schemes?

TABLE5.26
OPTIONS NO OF RESPONDENTS PERCENTAGE
YES 73 73
TO AN EXTENT 83 83
NOT SURE 44 44
TOTAL 200 200

SOURCE: PRIMARY DATA

INFERENCE:
From the above table, it is inferred that out of 200 respondents, 83 investors are to an
extent and 44 investors are not sure.

12)“High Returns involve high Risks.” Do you agree?

TABLE5.27
OPTIONS NO OF RESPONDENTS PERCENTAGE
AGREE 76 76
PARTIALLY AGREE 68 68
DISAGREE 56 56
TOTAL 200 200

SOURCE: PRIMARY DATA

INFERENCE:
From the above table, it is inferred that out of 200 respondents, 76 investors are agree and
56 investors are disagree.

13)Which of the following risks do you think are attached to your investment?
TABLE5.28
OPTIONS NO OF RESPONDENTS PERCENTAGE

VOLATILITY 76 76
INTEREST RATE RISK 44 44
CREDIT RISK 35 35
INFLATION RISK 25 25
SYSTEMATIC RISK 20 20
TOTAL 200 200
SOURCE: PRIMARY DATA
INFERENCE:
From the above table, it is inferred that out of 200 respondents, 76 investors are volatility
and 20 investors are systematic risk.

QUESTIONNAIRE ON INVESTORS ATTITUDE TOWARDS MUTUAL FUNDS

PERSONAL PROFILE

Name of the Investor:

Age :
Gender : O Male O Female
Address :
Qualification : O under Graduate O Graduate
O Post Graduate O Professional Degree
Designation :
Office Address :
Mobile Residence
Contact Number(s) : -

INVESTMENT DETAILS
11) Amount Invested in Mutual Funds
O Below Rs.100, 000 O above Rs.100, 000

12) Why do you prefer a Mutual Fund?

Savings Returns Diversification Risk Tolerance

13) What do you think is the basic difference in investing in Mutual funds rather than
Stocks?
Savings Risk Tolerance Diversification Tax Benefits

14) In which of the following have you invested?

Frontline equity Fund Top 200 Mutual Funds Select Focus Fund
Vision Fund Large Cap Fund

15) What is the reason for you to select this mutual fund company?
Reputation Provides good returns Experts Advice
Fund Manager Portfolio

16) Your investment is for a period of

< 1 year 1-2 years 3 years >3 years
17) Do you have complete knowledge of the Mutual Fund Industry?
O Yes O Not fully O Not at all

18) What type of funds have you invested in?

Equity Fund Debt Fund Liquid Fund
Index Fund
Balanced Fund

19) What is the reason for selecting this Scheme?

Returns Portfolio Risk Management Dividend

20) Have you made any investment analysis on the investment?

Yes No

21) Are you sure about the risks related to the schemes?
Yes To an Extent Not Sure

22) “High Returns involve high Risks.” Do you agree?

Agree Partially Agree Disagree

23) Which of the following risks do you think are attached to your investment?
Volatility Interest rate risk Credit risk Inflation Risk
Systematic risk

24) Rank the Objectives of the investment. Rank them From 1—4(1 for the most
preferred to 4 the least preferred)
Savings
 Tax Benefits
Portfolio Management
Balanced Risk
Potential Returns

25) Reveal your level of satisfaction with regard to your fund portfolio?

1. Extremely satisfied 2. Satisfied 3. Neutral 4. Unsatisfied 5. Extremely unsatisfied

26) Do you get quality advices & services from distributors?

1. Fully Agree2.Agree3.Neutral4.Disagree5.Strongly Disagree

27) Is there a need for simplified & clear information from the mutual fund companies?

1. Fully Agree2.Agree3.Neutral4.Disagree5.Strongly Disagree

28) How do you prefer your Returns to be?

Positive Negative Doubled No Returns

20) Which payment mode do you prefer?

Direct Payment ECS Internet Executives at your door

21) How often do you monitor the performance of your investments (NAV)?

1.6 months 2. 1 year 3. 3 year 4. 5 year 5. Never

SUGGESTIONS:
 A funds performance can be judged with respect to investor’s expectations.

 It is very important to select the right benchmark to evaluate a fund’s performance.

 During a given period of time, you can find out the returns & risk related to the fund.

 Performance of different type of funds can be compared by the portfolio 7 benchmark

index.

 Believing in long terms investment with diversified portfolio & churning strategy will
help to enhance the performance of your investments.

 Adviser’s measures & evaluation of the performance of different funds are helpful to get
acceptable returns on our investments.
CONCLUSION:

To conclude analysis & evaluation done from this company depicts that their market research
and portfolio aggregation over the period of 5 years given effective & better returns, whereby
enhancing the investors returns & satisfaction.

The life stage of an investor influences his investment objective & the desirable risk level. A
young investor may enter higher return at the cost of higher risk level, say equity fund. But the
same investors when he is in nearer to retirement prefer to switch over to debt funds to minimize
risk & to ensure steady return. So a change in life stages would be one such reason to consider
switching into a fund that matches with ones needs.