NAME: SARANG AGARWALROLL NO: 70SEMESTER: VICOURSE: BACHELOR OF BUSINESS ADMINISTRATIONMENTOR: Dr. MANJISHTHA MAITRATOPIC: MUTUAL FUNDS AN INVESTMENT AVENUE

Dissertation submitted in partial fulfilment of

The requirements of the Graduate Degree in

BACHELOR OF BUSINESS ADMINISTRATION (HONOURS)

J.D. BIRLA INSTITUTE (MANAGEMENT SECTION)

KOLKATA

To,

The Controller of Examinations

Jadavpur University,

Kolkata.

Respected Sir,

I, Sarang Agarwal, take full ownership of this work, titled MUTUAL FUNDS AN INVESTMENT AVENUE. All the references used are well acknowledged in the bibliography.

This Term Paper is in partial fulfilment of the requirements of Graduation Degree in Bachelors of Business Administration (Honours) from Jadavpur University.

Yours Sincerely,

SARANG AGARWAL REGISTRATION No.: 122401 (of 2012-2013) ROLL No.: BBA 70

DECLARATION

I declare the following:

The word count of the dissertation is: 12,814 words. The material contained in this dissertation is the end result of my own work. Due acknowledgement has been given in the bibliography and references to all sources be they printed, electronic or personal.

I am aware that my dissertation may be submitted to a plagiarism detection service where it will be stored in a database and compared against work submitted from this institute or from any other institutions.

In the event that there is a high degree of similarity in content detected, further investigation may lead to disciplinary actions including the cancellation of my degree according to Jadavpur University rules and regulations.

I declare that ethical issues have been considered, evaluated and appropriately addressed in this research.

I agree to an entire electronic copy or sections of the dissertation to being placed on the e-leaning portal, if deemed appropriate, to allow future students the opportunity to see examples of past dissertations and to be able to print and download copies if they so desire.

SIGNED:

DATED:

NAME: SARANG AGARWAL

ROLL NO/BATCH: Roll No. 70, Registration No. -BBA 122401, Batch of 2012-15.

MENTOR: Dr. MANJISHTHA MAITRA

ACKNOWLEDGEMENT

I would like to express my gratitude to all those who gave me their support to complete my dissertation. I express my feelings and gratitude and sincere thanks to the director of our college, Dr. J. N. Mukhopadhyaya.

I am deeply indebted to my mentor/supervisor at J. D. BIRLA INSTITUE (MANAGEMENT SECTION), Dr. Manjishtha Maitra for her unending support, direction and guidance throughout the course of research of material for the project as well as for the final compilation.

I am deeply indebted to my mentor/supervisor at HDFC ASSET MANAGEMENT COMPANY LIMITED, Mr. Arghya Dutta Gupta and Mr. Ankit Agarwal for their unending support, direction and guidance throughout the course of research of material for the project as well as for the final compilation.

I would also like to express my heartfelt thanks to the coordinators and staff of the Learning Resource Centre of our college, who assisted me to avail the relevant books and allowed me to carry out the necessary research for my project work.

The various websites from which information was acquired have proved to be very helpful and valuable sources of information in my project.

I would further like to acknowledge my parents and friends for their indispensable support to make this project a success.

ABSTRACTMutual fund industry has experienced a drastic growth in the past two decades. Increase in the number of schemes with increased mobilization of funds in the past few years notes the importance of Indian mutual funds industry. To fulfil the expectations of millions of retail investors, the mutual funds are required to function as successful institutional investors. Proper assessment of various fund performance and their comparison with other funds helps retail investors for making investment decisions. The main aim of this paper is to evaluate the performance of mutual fund schemes ranked 1, 2 and 3 by CRISIL and compare these returns with the benchmark indices Sensex. Considering the interest of retail investors simple statistical techniques like averages and rate of returns, correlation between return of schemes are used. The results obtained from the study clearly depicts that, in most of the cases the schemes has higher return than the Sensex but is also risky apart from UTI Top 100 Fund which thus proves to be an ideal investment.

INDEX SERIAL NUMBER CONTENTS PAGENUMBER

1Introduction9 11

1.1 Background of the Mutual Fund Industry9

1.2 National and International Scenario10 11

1.3 Aims and Objective of the Research11

2Literature Review12 22

2.1 Brief History On Mutual Funds In India12 13

2.2 Advantages Of Mutual Funds14 15

2.3 Structure Of Mutual Funds In India15 16

2.4 Classification Of Mutual Funds16 19

2.5 Journal Reviews19 22

3Company Profile23 29

3.1 HDFC Asset Management Company Limited23

3.2 Products Offered By HDFC AMC23 30

4Research Methodology31

5Data Analysis and Interpretation32 35

6Results and Conclusion36 37

6.1 Result and Finding36

6.2 Conclusion36

6.3 Limitations36 37

6.4 Scope for Further Research37

7Bibliography38 39

8Annexure40 52

LIST OF TABLES PAGE NUMBER

CORRELATION 1: Showing relationship between return of Sensex and return of Birla Sun Life Top 100 Funds40

TABLE 1: Showing the expected return and risk associated with Sensex and Birla Sun Life Top 100 Funds and Other Ratios41 43

CORRELATION 2: Showing relationship between return of Sensex and return of UTI Top 100 Funds44

TABLE 2: Showing the expected return and risk associated with Sensex and UTI Top 100 Funds and Other Ratios45 47

CORRELATION 3: Showing relationship between return of Sensex and return of HDFC Top 200 Funds48

TABLE 3: Showing the expected return and risk associated with Sensex and HDFC Top 200 Funds and Other Ratios49 51

LIST OF FIGURES PAGE NUMBER

GRAPH 1: Showing the difference between the risk and return of Sensex and Birla Sun Life Top 100 Funds 40

GRAPH 2: Showing the difference between the risk and return of Sensex and UTI Top 100 Funds44

GRAPH 3: Showing the difference between the risk and return of Sensex and HDFC Top 200 Funds48

GRAPH 4: Showing the difference between the risk and return of Sensex, Birla Sun Life Top 100 Funds, UTI Top 100 Funds and HDFC Top 200 Funds52

1. INTRODUCTION

1.1 BACKGROUND OF THE MUTUAL FUND INDUSTRY[1]Different investment avenues are available to investors. Mutual funds also offer good investment opportunities to the investors. Like all investments, they also carry certain risks. The investors should compare the risks and expected yields after adjustment of tax on various instruments while taking investment decisions. The investors may seek advice from experts and consultants including agents and distributors of mutual funds schemes while making investment decisions. With an objective to make the investors aware of functioning of mutual funds, an attempt has been made to provide information in question-answer format which may help the investors in taking investment decisions.[2]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 the 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 sell out the stock. Fund manager concentration on risk return trade off, where minimize the risk and maximize the return through diversification of the portfolio.[1]Mutual fund is a mechanism for pooling the resources by issuing units to the investors and investing funds in securities in accordance with objectives as disclosed in offer document.Investments in securities are spread across a wide cross-section of industries and sectors and thus the risk is reduced. Diversification reduces the risk because all stocks may not move in the same direction in the same proportion at the same time.Mutual fundissues units to the investors in accordance with quantum of money invested by them. Investors of mutual funds are known asunit holders.The profits or losses are shared by the investors in proportion to their investments. The mutual funds normally come out with a number of schemes with different investment objectives which are launched from time to time. A mutual fund is required to be registered with Securities and Exchange Board of India (SEBI) which regulates securities markets before it can collect funds from the public.

1.2 NATIONAL AND INTERNATIONAL SCENARIO

[3&4&5]The Indian mutual fund industry is passing through a transformation. On one side it has seen a number of regulatory developments while on the other the overall economy is just recovering from the global crisis of 2008. The mutual fund industry spanning almost two decades now has seen its share of success and failure. It is quite commendable that we have reached a mark of almost 10 trillion INR of assets under management as of May 2014. This has been a result of collaboration of all industry stakeholders like the distributor, the asset management company and the regulator who has shaped the way forward for the industry.Indian mutual fund industry has immense potential to grow even if it is able to reach 20% levels of the countries like Braziland Indian investors are better informed about the benefits of investment as compared to alternative investment avenues. According to the Report by PWC and KPMG, Asset under Management (AUM) as percentage of GDP in India is 4.12% as against Australia 88.22%, Germany 10.54%, Japan 7.57%, UK 18.81%, USA 61.27%, Canada 34.33%, France 59.63% and Brazil 19.95%. It was observed that IMFI is in fast growth phase; competition is becoming fierce with mergers and takeovers and building of brand exercise through focused advertising, better customer service, newer distribution channels, consistent return and newer products offerings. The mutual fund industry which witnessed downfall in 1991 when its declined to Rs.4100 core achieved significant growth in 1998 and the total industry became worth Rs.72, 000 crores and ever since this has kept increasing, revealing its efficient growth. In fact, the months of February and March considered toughest due to large-scale redemptions to meet tax liabilities also were active. Despite domestic MF growing at substantially higher rate in last 3 years, it is still many times behind US MF industry, the size of which is estimated at over US$ 12 trillion as against about Rs.5 lakh crore of India with its market penetration of 4% of total population, compared to 49% in the US and 20% in UK. In India, MF industry manages nearly 700 schemes while US MF industry has more than 12,000 MF schemes. The public sector share in current MF industry size will go up from nearly 20% from less than 10% now and that of joint sector to about 10% from 8% now The emerging trends in the MF would be that the Commodity funds will invest in commodities such as metals, food grains, and crude oil, commodity companies, or commodity futures contracts. Likewise, Real estate funds will invest in real estate directly. As the competition in the Indian MF industry will further intensify and go forward. Fund managers will, therefore, need to deliver products that are relevant to investors. As the Indian markets and investors mature, financial advice, product diversification, and multi-distribution channels will become critical for long-term success. Increasing investor awareness will help propel growth for the Indian MF industry. Investors need to be however warned against the common fallacy of comparing returns of debt-oriented fixed-income MFs and fixed-income products of small savings schemes without considering the attendant risks.There is a need for Indian MFs to come out with innovative products that cater to the ever changing customer requirements. In US, MFs provide products that cater to the entire life cycle of the investor. Diversified products will keep the present momentum going for the industry in a more competitive and efficient manner.

Source: KPMG Annual Report 2014; showing the Indian mutual fund industry

1.3 AIMS AND OBJECTIVE OF THE RESEARCH

1. To get an overview of the mutual fund industry in India. 2. To understand how mutual funds have changed the way Indians invest by comparing them with the stock index.3. Mutual funds vs. other investment avenues.4. As I am instructed from the internship being undertaken by me.

2. LITERATURE REVIEW

2.1 BREIF HISTORY ON MUTUAL FUNDS IN INDIA[2]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 - 1964-1987Unit Trust of India (UTI) was established in 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.6700 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 Canbank 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 Rs47004 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.121805 crores. The Unit Trust of India with Rs.44541 crores of assets under management was way ahead of other mutual funds.

Fourth Phase - since February 2003In 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.76000 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.

Source: moneycontrol.com

2.2 ADVANTAGES OF MUTUAL FUNDSMutual fund investments in stocks, bonds and other instruments require considerable expertise and constant supervision, to allow an investor to take the right decisions. Small investors usually do not have the necessary expertise and time to undertake any study that can facilitate informed decisions. While this is the predominant reason for the popularity of mutual funds, there are many other benefits that make mutual funds appealing. Diversification Benefits:Diversified investment improves the risk return profile of the portfolio. Optimal diversification has limitations due to low liquidity among small investors. The large corpus of a mutual fund as compared to individual investments makes optimal diversification possible. Due to the pooling of capital, individual investors can derive benefits of diversification. Low Transaction Costs:Mutual fund transactions are generally very large. These large volumes attract lower brokerage commissions and other costs as compared to smaller volumes of the transactions that individual investors enter into. The brokers quote a lower rate of commission due to two reasons. The first is competition for the institutional investors business. The second reason is that the overhead cost of executing a trade does not differ much for large and small orders. Hence for a large order these costs spread over a large volume enabling the broker to quote a lower commission rate. Availability of Various Schemes:There are four basic types of mutual funds: equity, bond, hybrid and money market. Equity funds concentrate their investments in stocks. Similarly bond funds primarily invest in bonds and other securities. Equity, bond and hybrid funds are called long-term funds. Money market funds are referred to as short-term funds because they invest in securities that generally mature in about one year or less. Mutual funds generally offer a number of schemes to suit the requirement of the investors. Professional Management:Management of a portfolio involves continuous monitoring of various securities and innumerable economic variables that may affect a portfolio's performance. This requires a lot of time and effort on part of the investors along with in-depth knowledge of the functioning of the financial markets. Mutual funds are managed by fund managers generally with knowledge and experience whose time is solely devoted to tracking and updating the portfolio. Thus investment in a mutual fund not only saves time and effort for the investor but is also likely to produce better results. Liquidity:Liquidating a portfolio is not always easy. There may not be a liquid market for all securities held. In case only a part of the portfolio is required to be liquidated, it may not be possible to see all the securities forming a part of the portfolio in the same proportion as they are represented in the portfolio; investing in mutual funds can solve these problems. A fund house generally stands ready to buy and sell its units on a regular basis. Thus it is easier to liquidate holdings in a Mutual Fund as compared to direct investment in securities. Returns:In India dividend received by investors is tax-free. This enhances the yield on mutual funds marginally as compared to income from other investment options. Also in case of long-term capital gains, the investor benefits from indexation and lower capital gain tax. Flexibility:Features of a MF scheme such as regular investment plan, regular withdrawal plans and dividend reinvestment plan allows investors to systematically invest or withdraw funds according to the needs and convenience. Well Regulated:All mutual funds are registered with SEBI and they function within the provisions of strict regulations designed to protect the interest of investors. The SEBI regularly monitors the operations of an AMC.

2.3 STRUCTURE OF MUTUAL FUNDS IN INDIA

In India, the mutual fund industry is highly regulated with a view to imparting operational transparency and protecting the investor's interest. The structure of a mutual fund is determined by SEBI regulations. These regulations require a fund to be established in the form of a trust under the Indian Trust Act, 1882. A mutual fund is typically externally managed. It is now an operating company with employees in the traditional sense.Instead, a fund relies upon third parties that are either affiliated organizations or independent contractors to carry out its business activities such as investing in securities. A mutual fund operates through a four-tier structure. The four parties that are required to be involved are a sponsor, Board of Trustees, an asset management company and a custodian. Sponsor:

A sponsor is a body corporate who establishes a mutual fund. It may be one person acting alone or together with another corporate body. Additionally, the sponsor is expected to contribute at least 40% to the net worth of the AMC. However, if any person holds 40% or more of the net worth of an AMC, he shall be deemed to be a sponsor and will be required to fulfil the eligibility criteria specified in the mutual fund regulation.

Board of Trustees:

A mutual fund house must have an independent Board of Trustees, where two-thirds of the trustees are independent persons who are not associated with the sponsor in any manner. The Board of Trustees of the trustee company holds the property of the mutual fund in trust for the benefit of the unit-holders. They are responsible for protecting the unit-holder's interest.

Asset Management Company:

The role of an AMC is highly significant in the mutual fund operation. They are the fund managers i.e. they invest investors' money in various securities (equity, debt and money market instruments) after proper research of market conditions and the financial performance of individual companies and specific securities in the effort to meet or beat average market return and analysis. They also look after the administrative functions of a mutual fund for which they charge management fee.

Custodian:

The mutual fund is required by law to protect their portfolio securities by placing them with a custodian. Nearly all mutual funds use qualified bank custodians. Only a registered custodian under the SEBI regulation can act as a custodian to a mutual fund.

Over the years, with the involvement of the RBI and SEBI, the mutual fund industry has evolved in a big way giving investors an opportunity to make the most of this investment avenue. With a proper structure in place, the industry has been able to cater to more number of investors. With the increase in awareness about mutual funds several new players have joined the bandwagon.

2.4 CLASSIFICATION OF MUTUAL FUNDSSchemes According to Maturity Period:[1]A mutual fund scheme can be classified into open-ended scheme or close-ended scheme depending on its maturity period. Open-ended Fund/ SchemeAn open-ended fund or scheme is one that is available for subscription and repurchase on a continuous basis. These schemes do not have a fixed maturity period. Investors can conveniently buy and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis. The key feature of open-end schemes is liquidity. Close-ended Fund/ SchemeA close-ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The fund is open for subscription only during a specified period at the time of launch of the scheme. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where the units are listed. In order to provide an exit route to the investors, some close-ended funds give an option of selling back the units to the mutual fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor i.e. either repurchase facility or through listing on stock exchanges. These mutual funds schemes disclose NAV generally on weekly basis.Schemes According to Investment Objective:A scheme can also be classified as growth scheme, income scheme, or balanced scheme considering its investment objective. Such schemes may be open-ended or close-ended schemes as described earlier. Such schemes may be classified mainly as follows: Growth / Equity Oriented SchemeThe aim of growth funds is to provide capital appreciation over the medium to long- term. Such schemes normally invest a major part of their corpus in equities. Such funds have comparatively high risks. These schemes provide different options to the investors like dividend option, capital appreciation, etc. and the investors may choose an option depending on their preferences. The investors must indicate the option in the application form. The mutual funds also allow the investors to change the options at a later date. Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time. Income / Debt Oriented SchemeThe aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures, Government securities and money market instruments. Such funds are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets. However, opportunities of capital appreciation are also limited in such funds. TheNAVsof such funds are affected because of change in interest rates in the country. If the interest rates fall,NAVsof such funds are likely to increase in the short run and vice versa. However, long term investors may not bother about these fluctuations. Balanced FundThe aim of balanced funds is to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. These are appropriate for investors looking for moderate growth. They generally invest 40-60% in equity and debt instruments. These funds are also affected because of fluctuations in share prices in the stock markets. However,NAVsof such funds are likely to be less volatile compared to pure equity funds. Money Market or Liquid FundThese funds are also income funds and their aim is to provide easy liquidity, preservation of capital and moderate income. These schemes invest exclusively in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money, government securities, etc. Returns on these schemes fluctuate much less compared to other funds. These funds are appropriate for corporate and individual investors as a means to park their surplus funds for short periods. Gilt FundThese funds invest exclusively in government securities. Government securities have no default risk. NAVsof these schemes also fluctuate due to change in interest rates and other economic factors as is the case with income or debt oriented schemes. Index FundsIndex Funds replicate the portfolio of a particular index such as the BSE Sensitive index, S&P NSE 50 index (Nifty), etc. These schemes invest in the securities in the sameweightagecomprising of an index. NAVsof such schemes would rise or fall in accordance with the rise or fall in the index, though not exactly by the same percentage due to some factors known as "tracking error" in technical terms. Necessary disclosures in this regard are made in the offer document of the mutual fund scheme.There are also exchange traded index funds launched by the mutual funds which are traded on the stock exchanges.Other Mutual Fund Schemes: Tax Savings SchemeThese schemes offer tax rebates to the investors under specific provisions of the Income Tax Act, 1961 as the Government offers tax incentives for investment in specified avenues. Equity Linked Savings Schemes (ELSS). Pension schemes launched by the mutual funds also offer tax benefits. These schemes are growth oriented and invest pre-dominantly in equities. Their growth opportunities and risks associated are like any equity-oriented scheme.

Fund Of Funds Scheme (FoF)A scheme that invests primarily in other schemes of the same mutual fund or other mutual funds is known as aFoFscheme.AFoFscheme enables the investors to achieve greater diversification through one scheme. It spreads risks across a greater universe. Load Or No Load FundA Load Fund is one that charges a percentage of NAV for entry or exit. That is, each time one buys or sells units in the fund, a charge will be payable. This charge is used by the mutual fund for marketing and distribution expenses. Suppose the NAV per unit is Rs.10. If the entry as well as exit load charged is 1%, then the investors who buy would be required to pay Rs.10.10 and those who offer their units for repurchase to the mutual fund will get only Rs.9.90 per unit. The investors should take the loads into consideration while making investment as these affect their yields/returns. However, the investors should also consider the performance track record and service standards of the mutual fund which are more important. Efficient funds may give higher returns in spite of loads.A no-load fund is one that does not charge for entry or exit. It means the investors can enter the fund/scheme at NAV and no additional charges are payable on purchase or sale of units.2.5 JOURNAL REVIEWSDifferent people have different ways of interpreting ideas in their daily life. While going through the journals and research papers on mutual fund markets different people had different objectives while doing their term paper on a topic common to all. [6] A STUDY ON INVESTORS ATTITUDE TOWARDS MUTUAL FUNDS AS AN INVESTMENT OPTION Dr. Binod Kumar Singh, faculty member of Amity Global Business School, Patna study on investors attitude towards mutual funds as an investment option. Basically his paper focuses on structure of mutual fund i.e. parties included in mutual funds, operations of mutual funds and comparison between investment in bank and mutual fund. Singh has shown how mutual fund is operated i.e. processes involved in mutual fund investment. Investor pool in their money with fund manager invest in securities generates return and their return is passed back to investor after deduction of certain fee. Singh has also shown the comparison between investment in bank and mutual funds under certain factors like return, administrative expenses, risk etc. Singh has also discussed about NAV (Net Asset Value) and calculation of NAV. For measuring various phenomena and analysing the collected data effectively and efficiently for drawing sound conclusions, Chi-square test has been used and for analysing the various factors responsible for investment in mutual funds, ranking was done on the basis of weighted scores and scoring was also done on the basis of scale.[7] PREFERENCE OF INVESTORS FOR INDIAN MUTUAL FUNDS AND ITS PERFORMANCE EVALUATIONDr. Shantanu Mehta analysed on the preference of investors for the mutual funds and also did performance evaluation. The objective was to study the preference of investors and their needs regarding mutual fund investment, what factors that influence most while buying mutual funds. Evaluation of the performance of mutual funds schemes was done on the basis of their return parameters. Mutual funds have opened new vistas to millions of small investors by virtually taking investment to their doorstep. In India, a small investor generally goes for such kind of information, which do not provide hedge against inflation and often have negative real returns. Thus the success of MFs is essentially the result of the combined efforts of competent fund managers and alert investors. A competent fund manager should analyse investor behaviour and understand their needs and expectations, to gear up the performance to meet investor requirements. Therefore, in this current scenario it is very important to identify needs of mutual funds investors, their preference for mutual funds schemes and its performance evaluation. In this research paper, researcher has an objective to know preference of mutual funds investors and performance evaluation of the preferred schemes by the investors. The survey is undertaken of 100 educated investors of Ahmedabad and Baroda city and the major findings reveal the major factors that influence buying behaviour mutual funds investors, sources that investor rely more while making investment and preferable mode to invest in mutual funds market.[8] A STUDY OF OPPORTUNITIES AND CHALLENGES FOR MUTUAL FUND IN INDIA: VISION 2020

Sarish studies the opportunities and challenges for mutual fund in India with a vision of 2020. Mutual Funds are one of the fastest growing sectors in Indian economy and have a high potential for sustainable growth in the future. Mutual Funds help an investor by making investment and savings option easier, affordable and accessible. Mutual funds include highly professional management, diversification, variety, liquidity and strict government regulation and full disclosure. Mutual funds were originated in UK and thereafter they crossed the borders to reach other destinations. Since its beginning in 1964 there were only 25 crore assets under management but now at the end of 2011 it has increased up to a giant figure of 700538cr. Basically the paper focuses on mutual funds, its benefits and the drawbacks of mutual funds. It aims at exploring the potential of mutual funds in India with the existing problems, complexities and variables and ways of meeting the challenges for mutual funds tandem with its potential of economic growth. Secondary Data is used to analyse and identify the opportunities and challenges for mutual funds.

[9] ANALYSIS OF EQUITY BASED MUTUAL FUNDS IN INDIASahil Jain, Department of Mathematics, Indian Institute of Technology Roorkee has done analysis on analysis of equity based mutual funds in India. The last decade showed a tremendous growth in mutual fund industry. As per the latest data the asset under management in this industry is more than 6.8 thousand billion. There are more than thousand mutual fund schemes which promise better returns than others. This paper has made an attempt to analyse the performance of equity based mutual schemes. The paper studies about 45 schemes offered by 2 private and 2 public sector companies have been studied over a period of April 1997 to April 2012 (15years). Analysis has been made on the basis of risk return relationship and Capital Asset Pricing Model (CAPM). The paper concludes by analysing that ICICI and HDFC were the best performers while UTI being average performer LIC being the worst performer.[10] PERFORMANCE EVALUATION OF EQUITY MUTUAL FUNDS (ON SELECTED EQUITY LARGE CAP FUNDS)Dr. R. Narayanasamy and V. Rathnamani have done performance evaluation of equity mutual funds. India capital market provides various investment avenues to the investors, to help them to invest in various industries and to ensure the profitable return. Among various financial products, mutual fund ensures the minimum risks and maximum return to the investors, Growth and developments of various mutual funds products in the Indian capital market has proved to be one of the most catalytic instruments in generating momentous investment growth in the capital market. In this context, close monitoring and evaluation of mutual funds has become essential. Therefore, choosing profitable mutual funds for investment is a very important issue. This study, basically, deals with the equity mutual funds that are offered for investment by the various fund houses in India, This study mainly focused on the performance of selected equity large cap mutual fund schemes in terms of risk- return relationship. The main objective of this research work is to analysis financial performance of selected mutual fund schemes through the statistical parameters such as (alpha, beta, standard deviation, r-squared, Sharpe ratio). The findings of this research study will be help full to investors for his future investment decisions.[11] AN ANALYSIS OF INVESTORS RISK PERCEPTION TOWARDS MUTUAL FUNDS SERVICESNidhi Walia and Dr. Mrs. Ravi Kiran presents a study endeavoured to give a look on investors perceptions towards risk-return trade off for mutual fund services. Understanding of investors expectations from mutual funds has become necessary issue to study due to mutual funds inability to accelerate the required pace of growth. Moreover, volatility influencing stock market movements is turning most of investors to hold stocks with calculated risk, in the shape of mutual funds. Thus mutual funds can prove to be most preferred financial avenue provided it is put forth before investors in the desired form. Financial markets are constantly becoming more efficient by providing more promising solutions to the investors. Being a part of financial markets although mutual funds industry is responding very fast by understanding the dynamics of investors perception towards rewards, still they are continuously following this race in their endeavour to differentiate their products responding to sudden changes in the economy. Thus, it is high time to understand and analyze investors perception and expectations, and unveil some extremely valuable information to support financial decision making of mutual funds. Financial markets are becoming more exhaustive with financial products seeking new innovations and to some extent innovations are also visible in designing mutual funds portfolio but these changes need alignment in accordance with investors expectations. Thus, it has become imperative to study mutual funds from a different angle, i.e., to focus on investors expectations and uncover the unidentified parameters that account for their dissatisfaction. Present research proposes to identify critical gaps in the existing framework for mutual funds and further extend it to understand realizing the need of redesigning existing mutual fund services by acknowledging Investor Oriented Service Quality Arrangements (IOSQA) in order to comprehend investors behaviour while introducing any financial innovations. [12] INDIAN MUTUAL FUND INDUSTRY: OPPORTUNITIES AND CHALLENGESKale and Panchapagesan article presents an overview of the mutual fund industry in India and the reasons for its poor penetration, which includes lack of objective research. It benchmarks the industry globally, and raises key issues regarding the ownership and performance of mutual funds, the sensitivity of fund flows to performance, and the importance of regulation to its growth, all of which have been largely under researched in India. It then captures the views of leading practitioners on these and other issues, including the challenges posed by poor financial literacy, the equity culture in the country, and the weakly supportive regulatory environment.[13] MUTUAL FUND INDUSTRY IN INDIA: AN OVERVIEWDeepti Goel and Richa Gupta did a study to analyze how fund houses adapt themselves to changes in regulations thereby shaping growth for the future. The landscape of the financial sector in India is continuously evolving, accredited to regulatory changes being undertaken, which is leading market participant like the asset management companies (AMCs) and distributors to restructure their strategies and adopt business models which will yield sustainable benefits. The whole paper is divided into five sections. In the first part we have discussed the conceptual framework of mutual fund. In the next section, we have focused on the growth of mutual fund industry in India. In the third section, we have analysed the trends in the mutual fund industry. Then, we have discussed the challenges of mutual fund industry and finally, the way ahead for mutual fund industry in India.

3. COMPANY PROFILE

3.1 HDFC ASEET MANAGEMENT COMPANY LIMITED[14]HDFC Asset Management Company Ltd (AMC) was incorporated under the Companies Act, 1956, on December 10, 1999, and was approved to act as an Asset Management Company for the HDFC Mutual Fund by SEBI vide its letter dated July 3, 2000.The registered office of the AMC is situated at HUL House, 2nd Floor, H. T. Parekh Marg, 165-166, Backbay Reclamation, Churchgate, Mumbai - 400 020. The Company Identification Number (CIN) is U65991MH1999PLC123027.In terms of the Investment Management Agreement, the Trustee has appointed the HDFC Asset Management Company Limited to manage the Mutual Fund. The paid up capital of the AMC is Rs. 25.241 crore as on March 31, 2015.3.2 PRODUCTS OFFERED BY HDFC AMCHDFC AMC deals in equity, debt, balanced as well as some special asset class funds. Many schemes are present under every category. Here is the brief introduction about some of these schemes.1) HDFC Growth Fund is an open-ended growth scheme managed under the expert fund management skills of Srinivas Rao Ravuri. The investment objective of this fund is to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related instruments. This fund has been rolling since 11th September of 2000. This fund has its majority holdings in equity and equity related instruments and a certain percentage is maintained in cash and cash equivalents (0-20%). The benchmark index for this fund is S&P BSE SENSEX. The total AUM & total live accounts under this fund (as on 31/3/15) are 1166.15crores (Unaudited) and 103,085 units respectively.

2) HDFC EQUITY Fund (HEF) is an open-ended growth scheme managed under the expert fund management skills of Prashant Jain. The investment objective of this fund is to generate long-term capital appreciation. This fund has been rolling since 1st January of 1996. This fund has its majority holdings in equity and equity related instruments including equity derivatives and a certain percentage are maintained in cash and cash equivalents (0-20%). The benchmark index for this fund is CNX 500. The total AUM & total live accounts under this fund (as on 31/3/15) are 16246.66 crores (unaudited) and 637,430 units respectively.

3) HDFC TOP 200 FUND (HT200) is an open-ended growth scheme managed under the expert fund management skills of Prashant Jain. The investment objective of this fund is to generate long-term capital appreciation. This fund has been rolling since 11th October of 1996. This fund has its majority holdings in equity and equity related instruments. The investment portfolio for equity and equity linked instruments will be primarily drawn from companies of BSE Top 200 Index Further the scheme may also invest in listed companies that would qualify to be in top 200 by market capitalization on the BSE even though they may not be listed on the BSE. This includes participation in large IPOs where in the market capitalization of the company based on issue price would make the company a part of top 200 companies listed on the BSE based on market capitalization. The fund has its majority holdings in equity and equity related schemes and a certain percentage is maintained in cash and cash equivalents (which was 1.29% in January 2015) .The benchmark index for this fund is S&P BSE 200. The total AUM & total live accounts under this fund (as on 31/3/15) are 12950.44 crores (unaudited) and 1,044,332 units respectively.

4) HDFC CAPITAL BUILDER PLAN (HCBF) is an open-ended growth scheme managed under the expert fund management skills of Chirag Setalvad. The investment objective of this fund is to generate long-term capital appreciation. This fund has been rolling since 1st February of 1994. This fund has its majority holdings in equity and equity related instruments by investing in companies whose shares are quoting at prices below their value. A certain percentage is maintained in cash and fixed income securities (0-20% max). The benchmark index for this fund is CNX 500. The total AUM & total live accounts under this fund (as on 31/3/15) are 641.62 crores (unaudited) and 73875 units respectively.

5) HDFC CORE & SATELLITE FUND (HCSF) is an open-ended growth scheme managed under the expert fund management skills of Vinay Kulkarni. The investment objective of this fund is to generate long-term capital appreciation. This fund has been rolling since 17th September of 2004. This fund has its majority holdings in equity and equity related instruments and a certain percentage is maintained in fixed income securities (5-10%). The benchmark index for this fund is S&P BSE 200. The total AUM & total live accounts under this fund (as on 31/3/15) are 285.39crores (Unaudited) and 34,300 units respectively.

6) HDFC PREMIER MULTI-CAP FUND (HPMCF) is an open-ended growth scheme managed under the expert fund management skills of Vinay Kulkarni. The investment objective of this fund is to generate long-term capital appreciation from a portfolio that is invested predominantly in diversified portfolio of mid cap and small cap Blue Chip companies. This fund has been rolling since 6th April 2005. This fund has its majority holdings in equity and equity related instruments and a certain percentage is maintained in cash and cash equivalents (0-20%). The benchmark index for this fund is CNX 500. The total AUM & total live accounts under this fund (as on 31/3/15) are 336.02 crores (Unaudited) and 50,680 units respectively.

7) HDFC LARGE CAP FUND (HlCF) is an open-ended growth scheme managed under the expert fund management skills of Vinay Kulkarni. The investment objective of this fund is to generate long-term capital appreciation by investing in large cap companies. This fund has been rolling since 18th February of 1994. This fund has its majority holdings in equity and equity related instruments of large cap companies and a certain percentage is maintained in debt and money market instruments (0-20%). The benchmark index for this fund is CNX NIFTY INDEX. The total AUM & total live accounts under this fund (as on 31/3/15) are 1238.45crores (Unaudited) and 342,305 units respectively.

8) HDFC MIDCAP OPPERTUNITIES (HMCOF) is an open-ended growth scheme managed under the expert fund management skills of Chirag Setalvad. The investment objective of this fund is to generate long-term capital appreciation by investing in equity and equity related instruments of small & mid cap companies. This fund has been rolling since 25th June of 2007. This fund has its majority holdings in equity and equity related instruments of large cap companies and a certain percentage is maintained in debt and money market instruments (0-25% max). The benchmark index for this fund is CNX Midcap. The total AUM & total live accounts under this fund (as on 31/3/15) are 7470.54 crores (Unaudited) and 492,402 units respectively

9) HDFC SMALL & MID CAP FUND (HSMF) is an open-ended growth scheme managed under the expert fund management skills of Chirag Setalvad. The investment objective of this fund is to generate long-term capital appreciation by investing in small & mid cap companies. This fund has been rolling since 3rd April of 2008. This fund has its majority holdings in equity and equity related instruments of mid & small cap companies and a certain percentage is maintained in debt and money market instruments (0-25%). The benchmark index for this fund is CNX Small Cap INDEX. The total AUM & total live accounts under this fund (as on 31/3/15) are 515.84crores (Unaudited) and 23,535 units respectively. 10) HDFC INFRASTRUCTURE FUND (HINFR) is an open-ended equity scheme managed under the expert fund management skills of Prashant Jain. The investment objective of this fund is to generate long-term capital appreciation by investing equity & equity related securities of companies engaged in or expected to benefit from growth & development of infrastructure. This fund has been rolling since 10th March of 2008. This fund has its majority holdings in equity and equity related instruments and a certain percentage is maintained in debt and money market instruments & fixed income derivatives (0-35%). The benchmark index for this fund is CNX 500. The total AUM & total live accounts under this fund (as on 31/3/15) are 1717.77crores (Unaudited) and 144,798 units respectively.

11) HDFC LONG TERM ADVANTAGE FUND (HFTAL) is an open-ended equity linked savings scheme managed by fund manager Mr. Chirag Setalvad and Mr. Rakesh Vyas (for Oversees Instruments). Its objective is to generate a long-term capital appreciation. It is a Tax Saver Plan. It was introduced on January 2, 2001. The benchmark index is S&P BSE SENSEX. The AUM and Live Accounts as on March 31, 2015 are Rs.1135.86cr (Unaudited) and 177,918 respectively.

12) HDFC TAX SAVER (HTS) is an open-ended linked savings scheme managed by fund manager Vinay Kulkarni. Its objective is to achieve a long-term capital growth. It is a Tax Saver Plan. It was introduced on March 31, 1996. The benchmark index is CNX 500. The AUM and Live Accounts as on March 31, 2015 are Rs.4680.08cr (Unaudited) and 688,497 respectively.

13) HDFC INDEX FUND (HIF) is an open-ended scheme. There are 3 types of Index Fund- The SENSEX Plan, NIFTY Plan and the SENSEX Plus Plan. The fund manager is Vinay Kulkarni. The benchmark index for SENSEX Plan and SENSEX Plus Plan is S&P BSE SENSEX, for NIFTY Plan is CNX NIFTY. The AUM for SENSEX Plan, NIFTY Plan and SENSEX Plus Plan are Rs.72.16cr, Rs.86.11cr and Rs.115.68cr respectively. The Live accounts for the 3 plans are 3240, 3887 and 5,954 respectively.

14) HDFC INFLATION INDEXED BOND FUND (HIIBF) is an open ended scheme and has two plans direct and regular. Objective of this fund is to generate income and capital appreciation indexed to inflation by investing in a portfolio of inflation indexed bonds. The fund manager is Mr. Anil Bamboli. It was introduced on 4th March, 2013.

15) HDFC BANKING AND PSU DEBT FUND (HBPDF) is an open ended scheme to generate regular income through investments in debt and money market instruments consisting predominantly of securities issued by entities such as Scheduled Commercial Banks and Public Sector undertakings. There is no assurance that the investment objective of the Scheme will be realized. The fund manager is Mr. Rakesh Vyas. Its inception date was 25th March 2014.

16) HDFC CORPORATE DEBT OPPORTUNITIES FUND (HCDOF) is an open ended income scheme. Objective of this scheme is to generate regular income and capital appreciation by investing predominantly in corporate debt. This scheme also offers regular and direct plan. Fund managers of this scheme are Mr. Shobhit Mehrotra and Mr. Rakesh Vyas. This scheme was introduced on 25th March 2014.

17) HDFC MEDIUM TERM OPPORTUNITIES FUND (HMTOF) is an open ended income scheme to generate regular income through investments in Debt/Money Market Instruments and Government Securities with maturities not exceeding 60 months. This scheme has dividend and growth option. Fund managers are Mr. Shobhit Mehrotra and Rakesh Vyas. Inception date of this scheme was on 29th June 2010.

18) HDFC SHORT TERM OPPORTUNITIES FUND (HSTOF) is an open ended scheme. Objective of this scheme is to generate regular income through investments in Debt/Money Market Instruments and Government Securities with maturities not exceeding 30 months. Fund managers of this scheme are Mr. Anil Bamboli and Mr. Rakesh Vyas. This scheme was introduced on 25th June 2010.

19) HDFC FLOATING RATE INCOME FUND-LONG TERM PLAN (HFRIF) is an open ended scheme to generate regular income through investment in a portfolio comprising substantially of floating rate debt / money market instruments, fixed rate debt / money market instruments swapped for floating rate returns, and fixed rate debt securities and money market instruments. Existing plans of this scheme are dividend plan and growth plan. Fund managers are Mr. Shobhit Mehrotra and Mr. Rakesh Vyas. Inception date of this scheme was 16th January 2003.

20) HDFC GILT FUND-LONG TERM PLAN (HGF) is an open ended income scheme. Objective of this scheme is to generate credit risk-free returns through investments in sovereign securities issued by the Central Government and/orState Government. Dividend option and growth options are two plans of this scheme. Fund manager is Mr. Anil Bamboli. This scheme was introduced on 25th July 2001.

21) HDFC HIGH INTEREST FUND- SHORT TERM PLAN (HHIF) is an open ended scheme. Its existing plans are growth option and fortnightly dividend option. Dividend option offers payout and reinvestment opportunity. The objective of HDFC High Interest Fund - Short Term Planis to generate income by investing in a range of debt and money market instruments of various maturity dates with a view to maximising income while maintaining the optimum balance of yield, safety and liquidity. Fund managers of this scheme are Mr. Shobhit Mehrotra and Mr. Rakesh Vyas. Inception date of this scheme was 6th February 2002.

22) HDFC HIGH INTEREST FUND- DYNAMIC PLAN (HHIF) is an open ended income scheme. The objective of HDFC High Interest Fund - Dynamic Plan is to generate income by investing in a range of debt and money market instruments of various maturity dates with a view to maximising income while maintaining the optimum balance of yield, safety and liquidity. Fund managers of this scheme are Mr. Anil Bamboli and Mr. Rakesh Vyas. This scheme was introduced on 28th April 1997.

23) HDFC MULTIPLE YIELD FUND-PLAN 2005 is an open ended income scheme to generate positive returns over medium time frame with low risk of capital loss over medium time frame. Fund manager of this schemes are Mr. Anil Bamboli, Mr. Chirag Setalvad, Mr. Rakesh Vyas. This fund was introduced on 17th August 2005.

24) HDFC MF MONTHLY INCOME PLAN- LONG TERM PLAN is an open ended income scheme. Its objective is to generate regular returns through investment primarily in Debt and Money Market Instruments. The secondary objective of the Scheme is to generate long-term capital appreciation by investing a portion of the Scheme`s assets in equity and equity related instruments. However, there can be no assurance that the investment objective of the Scheme will be achieved. Fund managers are Mr. Prashant Jain, Mr. Rakesh Vyas, and Mr. Shobhit Mehrotra. Inception date of this fund was 26th December 2003.

25) HDFC CASH MANAGEMENT FUND-TREASURY ADVANTAGE FUND is an open ended income scheme. Its objective is to generate regular income through investment in debt securities and money market instruments. Fund managers are Mr. Anil Bamboli and Mr. Rakesh Vyas. This fund was introduced on 18th November 1999.

26) HDFC FLOATING RATE INCOME FUND-SHORT TERM PLAN is an open ended income scheme. Its objective is to generate rregular income through investment in a portfolio comprising substantially of floating rate debt / money market instruments, fixed rate debt / money market instruments swapped for floating rate returns and fixed rate debt securities and money market instruments. Inception date of this scheme was 16th January 2003. Fund managers of this scheme are Mr. Shobhit Mehrotra and Mr. Rakesh Vyas.27) HDFC GILT FUND-SHORT TERM PLAN is an open ended scheme to generate credit risk-free returns through investments in sovereign securities issued by the Central Government and/or a State Government. This fund was introduced on 25th July 2001 and fund manager is Mr. Anil Bamboli.

28) HDFC SHORT TERM PLAN is an open ended income scheme whose objective is to generate regular income through investment in debt securities and money market instrument. Inception date of this scheme was 28th February 2002. Fund managers are Mr. Anil Bamboli and Mr. Rakesh Vyas.

29) HDFC INCOME FUND is an open ended income scheme. Its inception date was 11th September 2000. Objective of this scheme is to optimise returns while maintaining a balance of safety, yield and liquidity. Fund managers are Mr. Shobhit Mehrotra and Mr. Rakesh Vyas.

30) HDFC MULTIPLE YIELD FUND is an open ended income fund. This scheme has dividend and growth option. Its objective is to generate positive returns over medium time frame with low risk of capital loss over medium time frame. Inception date was 17th September 2004. Fund manager of this scheme are Mr. Rakesh Vyas, Mr. Vinay R. Kulkarni and Mr. Anil Bamboli.

31) HDFC MF MONTHLY INCOME PLAN- SHORT TERM PLAN is an open ended income fund. The objective of this scheme is to generate regular returns through investment primarily in Debt and Money Market Instruments. The secondary objective of the Scheme is to generate long-term capital appreciation by investing a portion of the Scheme's assets in equity and equity related instruments. However, there can be no assurance that the investment objective of the Scheme will be achieved. Fund managers are Mr. Shobhit Mehrotra, Mr. Rakesh Vyas and Mr. Vinay R. Kulkarni. Inception date was 26th December 2003.

32) HDFC ARBITRAGE FUND is an open ended equity fund. Its objective is to generate income through arbitrage opportunities between cash and derivative market and arbitrage opportunities within the derivative segment and by deployment of surplus cash in debt securities and money market instruments. Fund manager is Mr. Anil Bamboli. Inception date is 23rd October 2007.

33) HDFC GOLD EXCHANGE TRADED FUND is an open ended exchange traded fund. The investment objective of the Scheme is to generate returns that are in line with the performance of gold, subject to tracking errors. Fund manager is Mr. Anil Bamboli. Inception date is 13th august 2010.34) HDFC GOLD FUND is an open ended fund of fund scheme investing in hdfc gold exchange traded fund. The investment objective of the Scheme is to seek capital appreciation by investing in units of HDFC Gold Exchange Traded Fund. Fund manager is Mr. Anil Bamboli. Inception date is 1st November 2011.

35) HDFC BALANCED FUND is an open ended balanced scheme. The primary objective of the Scheme is to generate capital appreciation along with current income from a combined portfolio of equity and equity related and debt and money market instruments. Fund manager is Mr. Chirag Setalvad. Inception date is 11th September 2000.

36) HDFC PRUDENCE FUND is an open ended balanced scheme. The investment objective of the Scheme is to provide periodic returns and capital appreciation over a long period of time, from a judicious mix of equity and debt investments, with the aim to prevent/ minimise any capital erosion. Fund manager is Mr. Prashant Jain. Inception date is 1st February 1994.

37) HDFC DYNAMIC PE RATIO FUND OF FUNDS is an open ended fund of fund scheme. Its objective is to seek capital appreciation by managing the asset allocation between specified equity and debt schemes of HDFC Mutual Fund. Fund managers are Mr. Anil Bamboli and Mr. Miten Lathia. This fund was introduced on 6th February 2012.

38) HDFC LIQUID FUND is an open ended liquid income scheme. The primary objective of the Scheme is to enhance income consistent with a high level of liquidity, through a judicious portfolio mix comprising money market and debt instruments. Fund manager is Mr. Shobhit Mehrotra. Inception date is 17th October 2000.

39) HDFC CHILDREN GIFT FUND SAVINGS PLAN is an open ended balanced scheme. The primary objective of the Scheme is to generate long term capital appreciation. However, there can be no assurance that the investment objective of the Scheme / Plans will be achieved. Fund manager is Mr. Chirag Setalvad. Inception date is 2nd March 2001.

40) HDFC CHILDREN GIFT FUND-INVESTMENT PLAN is an open ended balanced scheme. The primary objective of the Scheme is to generate long term capital appreciation. However, there can be no assurance that the investment objective of the Scheme / Plans will be achieved. Fund manager is Mr. Chirag Setalvad. Inception date is 2nd March 2001.4. RESEARCH METHODOLOGY[15]According to Clifford Woody, research comprises defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making deductions and reaching conclusion; and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by researcher in studying his research problem along with the logic behind it.This term paper uses no primary data. It uses secondary data has all the information is collected from different journals, books, and websites only. All the data, journals, information is being collected with the help of various sources and there is no use of primary information viz. surveys, questionnaires etc. All the data analysis is been done with the help of tables, charts.

5. DATA ANALYSIS AND INTERPRETATION

DATA ANALYSIS AND INTERPRETATION OF CORRELATION 1, GRAPH 1 AND TABLE 1 (refer to annexure)Launched in October 2005,Birla Sun LifeTop 100 Fund is classified in the large cap-oriented equity category of the CRISILMutual Fund Ranking. The fund has been ranked in the top 30 percentile (CRISIL Mutual Fund Rank 1) for 10 quarters since June 2011. The schemes objective is to provide medium- to long-term capital appreciation by investing predominantly in equity and equity-related instruments with minimum 65 per cent exposure to top 100 companies as measured by the market capitalisation.The table shows the relation between the returns of the mutual fund scheme (Birla Sun Life) and Sensex monthly returns from 2012 to 2015. After analysing the returns of the scheme it was seen that the year 2012-13 showed a positive and a higher return when compared with Sensex returns of 2012-13. In 2013-14 there was more or less than 1.5 times returns from the scheme when compared with sensex. Investors earned good and healthy returns in 2014-15 from the schemes as compared to the last year as because the returns were positive and huge as compared to last year.The Sharpe ratio is calculated by subtracting the risk-free rate - such as that of the 1 year RBI Treasury Bill - from the rate of return for a portfolio and dividing the result by the standard deviation of the portfolio returns. In this case the Sharpe ratio is -1.496432942. The greater a portfolio's Sharpe ratio, the better its risk-adjusted performance has been. A negative Sharpe ratio indicates that a risk-less asset would perform better than the security being analyzed.A ratio developed by Jack Treynor that measures returns earned in excess of that which could have been earned on a riskless investment per each unit of market risk. It is similar to the Sharpe ratio, with the difference being that the Treynor ratio uses beta as the measurement of volatility. In this case the Treynor ratio is -0.061372565.A risk-adjusted performance measure that represents the average return on a portfolio over and above that predicted by the capital asset pricing model (CAPM), given the portfolio's beta and the average market return. This is the portfolio's alpha. In fact, the concept is sometimes referred to as "Jensen's alpha." Jensen's measure is one of the ways to help determine if a portfolio is earning the proper return for its level of risk. In this case the Jensens alpha is 0.01123592. If the value is positive, then the portfolio is earning excess returns. In other words, a positive value for Jensen's alpha means a fund manager has "beat the market" with his or her stock picking skills.Thecorrelationcoefficient (a value between -1 and +1) tells you how strongly two variables are related to each other. The correlation coefficient between return of sensex and return from mutual fund (Birla Sun Life Scheme) is 0.948868646 which shows a high positive correlation.Bar Graph shows the comparison of risk and return between the Sensex and Birla Sun Life Top 100 Fund Scheme. The graph clearly depicts that mutual fund scheme has a higher return as compared to Sensex. The returns are almost 1.5times when compared to Sensex. The risk of the scheme is also more.

DATA ANALYSIS AND INTERPRETATION OF CORRELATION 2, GRAPH 2 AND TABLE 2 (refer to annexure)Launched in January 1993,UTITop 100 Fund is classified in the large cap-oriented equity category of the CRISILMutual Fund Ranking. The fund has been ranked in the top 30 percentile (CRISIL Mutual Fund Rank 2) for 10 quarters since June 2011.The fund aims to provide long term capital appreciation/dividend distribution by investing predominantly in equity and equity related instruments of top 100 stocks by market capitalization. There can be no assurance that the investment objectives of the scheme will be realized.The table shows the relation between the returns of the mutual fund scheme (UTI Top 100 Fund) and Sensex monthly returns from 2012 to 2015. After analysing the returns of the scheme it was seen that the year 2012-13 showed a lower return when compared with Sensex returns of 2012-13. In 2013-14 there was a more or less equal return from the scheme when compared with sensex. Investors earned good and healthy returns in 2014-15 from the schemes as compared to the last year as because the returns were positive and huge as compared to last year.The Sharpe ratio is calculated by subtracting the risk-free rate - such as that of the 1 year RBI Treasury Bill - from the rate of return for a portfolio and dividing the result by the standard deviation of the portfolio returns. In this case the Sharpe ratio is -1.789018183. The greater a portfolio's Sharpe ratio, the better its risk-adjusted performance has been. A negative Sharpe ratio indicates that a risk-less asset would perform better than the security being analyzed.A ratio developed by Jack Treynor that measures returns earned in excess of that which could have been earned on a riskless investment per each unit of market risk. It is similar to the Sharpe ratio, with the difference being that the Treynor ratio uses beta as the measurement of volatility. In this case the Treynor ratio is -0.074539347.A risk-adjusted performance measure that represents the average return on a portfolio over and above that predicted by the capital asset pricing model (CAPM), given the portfolio's beta and the average market return. This is the portfolio's alpha. In fact, the concept is sometimes referred to as "Jensen's alpha." Jensen's measure is one of the ways to help determine if a portfolio is earning the proper return for its level of risk. In this case the Jensens alpha is 0.002531181. If the value is positive, then the portfolio is earning excess returns. In other words, a positive value for Jensen's alpha means a fund manager has "beat the market" with his or her stock picking skills.Thecorrelationcoefficient (a value between -1 and +1) tells you how strongly two variables are related to each other. The correlation coefficient between return of sensex and return from mutual fund (UTI Top 100 Fund) is 0.934134751 which shows a high positive correlation.

Bar Graph shows the comparison of risk and return between the Sensex and UTI Top 100 Fund Scheme. The graph clearly depicts that mutual fund scheme has a higher return as compared to Sensex. The risk of the scheme is half than that as compared with sensex.DATA ANALYSIS AND INTERPRETATION OF CORRELATION 3, GRAPH 3 AND TABLE 3 (refer to annexure)Launched in August 1996,HDFCTop 200 Fund is classified in the large cap-oriented equity category of the CRISILMutual Fund Ranking. The fund has been ranked in the top 30 percentile (CRISIL Mutual Fund Rank 3) for 10 quarters since June 2011. The scheme seeks capital appreciation and would invest up to 90 per cent in equity and the remaining in debt instruments. Also, the stocks would be drawn from the companies in the BSE 200 Index as well as 200 largest capitalised companies in India.The table shows the relation between the returns of the mutual fund scheme (HDFC Top 200 Fund) and Sensex monthly returns from 2012 to 2015. After analysing the returns of the scheme it was seen that the year 2012-13 showed a lower return when compared with Sensex returns of 2012-13. In 2013-14 there was a more or less equal return from the scheme when compared with sensex. Investors earned good and healthy returns in 2014-15 from the schemes as compared to the last year as because the returns were positive and huge as compared to last year.The Sharpe ratio is calculated by subtracting the risk-free rate - such as that of the 1 year RBI Treasury Bill - from the rate of return for a portfolio and dividing the result by the standard deviation of the portfolio returns. In this case the Sharpe ratio is -1.325971512. The greater a portfolio's Sharpe ratio, the better its risk-adjusted performance has been. A negative Sharpe ratio indicates that a risk-less asset would perform better than the security being analyzed.A ratio developed by Jack Treynor that measures returns earned in excess of that which could have been earned on a riskless investment per each unit of market risk. It is similar to the Sharpe ratio, with the difference being that the Treynor ratio uses beta as the measurement of volatility. In this case the Treynor ratio is -0.05521313.A risk-adjusted performance measure that represents the average return on a portfolio over and above that predicted by the capital asset pricing model (CAPM), given the portfolio's beta and the average market return. This is the portfolio's alpha. In fact, the concept is sometimes referred to as "Jensen's alpha." Jensen's measure is one of the ways to help determine if a portfolio is earning the proper return for its level of risk. In this case the Jensens alpha is 0.062950302. If the value is positive, then the portfolio is earning excess returns. In other words, a positive value for Jensen's alpha means a fund manager has "beat the market" with his or her stock picking skills.Thecorrelationcoefficient (a value between -1 and +1) tells you how strongly two variables are related to each other. The correlation coefficient between return of sensex and return from mutual fund (HDFC Top 100 Fund) is 0.92940426 which shows a high positive correlation.

Bar Graph shows the comparison of risk and return between the Sensex and HDFC Top 200 Fund Scheme. The graph clearly depicts that mutual fund scheme has a higher return as compared to Sensex. The risk of the scheme is more as compared with sensex.

DATA ANALYSIS AND INTERPRETATION OF GRAPH 4 (refer to annexure)Comparing all the schemes together with Sensex in regards with return and risk it can be well noticed that HDFC Top 200 Fund has the highest return and risk associated with it which can be used by and adverse risk taking investor. Birla Sun Life Top 100 Fund gives higher return than sensex but is more risky. UTI Top 100 Fund give a return which is higher than that of Birla Sun Life Top 100 Fund but less than that of HDFC Top 200 Fund and is less riskier than Sensex so it is an ideal investment scheme as returns here are more and the risks are not that high.

Source: moneycontrol.com6. RESULTS AND CONCLUSION

6.1 RESULT AND FINDINGSThe present study reflects that, in most of the cases mean return of UTI Top 100 Fund (G) mutual fund schemes is more than the mean return of other mutual fund schemes and Sensex returns. Largecap Schemes has shown healthy returns as compared to index schemes. UTI Top 100 Fund Scheme (G) when compared with the benchmark Sensex showed a return much higher than the benchmark. Birla Sun Life Top 100 Fund Scheme (G) when compared with sensex showed a return much higher than the benchmark but was more risky as when compared with UTI Top 100 Fund. HDFC Top 200 Fund (G) showed the highest return but was the most risky. There is a positive and strong correlation between the return of Largecap schemes with that of the returns from sensex. It can be thus said that Crisil Ranked 2 mutual fund emerges as an ideal investment. All Largecap schemes have negative Sharpe ratio which indicates that a risk-less asset would perform better than the security being analyzed All Largecap schemes have negative Treynor ratio implying that the fund outperformed the risk-free rate by betting against the market. All Largecap schemes have positive Jensens Alpha, a positive value for Jensen's alpha means a fund manager has "beat the market" with his or her stock picking skills.

6.2 CONCLUSIONThis paper was an attempt to evaluate the performance of mutual fund schemes ranked 1, 2 and 3 by CRISIL and compare the mean returns with the benchmark indices Sensex. The performance of all the schemes seemed volatile during the study period, as such it was quite difficult to earmark one particular scheme that out performed consistently well during the period of study. The results obtained from the study HDFC Top 200 Fund scheme gave the highest return during the period taken into account. It can also be concluded that UTI Top 100 Fund mutual fund schemes have the potential to provide greater returns in long term. The investments in mutual funds is subject to market risk and the investment decision should be taken carefully, as there is no guarantee of return and the past performance may or may not be occurred in future.6.3 LIMITATIONS

The project was made solely on the information gathered from secondary data due to limited time and resource constraints. There was no use of any primary data in the form of market surveys, research, etc.

Due to the word limit constraint, other case studies done previously on the topic could not be mentioned in the research paper.

6.4 SCOPE FOR FURTHER RESEARCHThere is an ample of opportunity for upgrading the research for the appraisal of mutual fund performances. The study is limited to 3 mutual fund schemes ranked by CRISIL. In the same way the performance of all types of mutual fund schemes of different ranking could be possible. Various performance evaluation models can also be applied for the evaluation of mutual fund performances

7. BIBLIOGRAHY

WEB SITES:

1. http://www.sebi.gov.in/faq/mf_faq.html (Refer to page no 9 & page no 16 - 19)

2. http://www.moneycontrol.com/investor-education/classroom/knowhistory-structureadvantagesmutual-funds-724370.html (Refer to page no 9 & page no 12 - 16)

3. https://www.pwc.in/en_IN/in/assets/pdfs/publications/2014/pwc-cii-indian-mutual-fund-industry-at-a-glance-2014.pdf (Refer to page no 10 - 11)

4. https://www.pwc.in/assets/pdfs/financial-service/Towards_2015.p (Refer to page no 10 - 11)

5. http://www.kpmg.com/IN/en/IssuesAndInsights/ArticlesPublications/Documents/Indian-Mutual-Fund-Industry.pdf (Refer to page no 10 - 11)

14. http://www.hdfcfund.com/ (Refer to page no 23 - 30)

15. http://www.qsrinternational.com/what-is-qualitative-research.aspx (Refer to page no 31)

JOURNAL REVIEWS:

6. Singh, B.K., (2012). A Study on Investors Attitude towards Mutual Funds as an Investment Option, International Journal of Research in Management, Vol. 2, Issue 2, pp.61-70. Retrieved from http://rspublication.com/ijrm/march%2012/6.pdf (Refer to page no 19)

7. Mehta, S., (2012). Preference of Investors for Indian Mutual Funds and its Performance Evaluation, Pacific Business Review International, Vol. 5, Issue 3, pp. 62-76. Retrieved from http://www.pbr.co.in/PDF%20Copy/6.pdf (Refer to page no 20)

8. Sarish, (2012). A Study of Opportunities and Challenges for Mutual Fund in India: Vision 2020, VSRD International Journal of Business and Management Research, Vol. 2, Issue 4, pp. 170-178. Retrieved from http://www.vsrdjournals.com/MBA/Issue/2012_04_Apr/Web/5_Sarish_652_Research_Communication_Apr_2012.pdf (Refer to page no 20)9. Jain, S., (2012). Analysis of Equity Based Mutual Funds in India, IOSR Journal of Business and Management, Vol. 2, Issue 1, pp.1-4. Retrieved from http://www.iosrjournals.org/iosr-jbm/papers/vol2-issue1/A0210104.pdf (Refer to page no 21)

10. Narayanasamy, R. And Rathnamani, V., (2013). Performance Evaluation of Equity Mutual Funds (on Selected Equity Large Cap Funds), International Journal of Business and Management Invention, Vol. 2, Issue 4, pp. 18-24. Retrieved from http://www.ijbmi.org/papers/Vol(2)4/version-2/C241824.pdf (Refer to page no 21)

11. Walia, N., and Kiran, R., (2009). An Analysis of Investors Risk Perception towards Mutual Funds Services, International Journal of business Management, Vol. 4, Issue 5, pp. 106-120. Retrieved from http://www.ccsenet.org/journal/index.php/ijbm/article/view/1762 (Refer to page no 21 - 22)

12. Kale, R.J. And Panchapagesan, V. (2012), Indian Mutual Fund Industry: Opportunities and Challenges, IIMB Management Review, Vol. 24, Issue 4, pp. 245-258. Retrieved from http://www.sciencedirect.com/science/article/pii/S0970389612000420 (Refer to page no 22)

13. Goel, D. And Gupta, R., (2014) Mutual Fund Industry in India: An Overview, International Journal of Emerging Research in Management and Technology, Vol. 3, Issue 5, pp. 168-171. Retrieved from http://www.ermt.net/docs/papers/Volume_3/5_May2014/V3N5-212.pdf (Refer to page no 22)

8. ANNEXURE

CORRELATION 1: Showing relationship between return of Sensex and return of Birla Sun Life Top 100 Funds

Return of SensexReturn of Birla Sun Life

Return of Sensex1

Return of Birla Sun Life0.9488686461

GRAPH 1: Showing the difference between the risk and return of Sensex and Birla Sun Life Top 100 Funds

Source: authors work.TABLE 1: Showing the expected return and risk associated with Sensex and Birla Sun Life Top 100 Funds and Other RatiosSENSEX

MonthReturnReturn-ED*D

Apr-12-0.004906287-0.0189064130.000357452

May-12-0.063530924-0.077531050.006011064

Jun-120.0746954260.0606952990.003683919

Jul-12-0.011118774-0.02511890.000630959

Aug-120.011219423-0.0027807037.73231E-06

Sep-120.0764895960.0624894690.003904934

Oct-12-0.013716547-0.0277166730.000768214

Nov-120.0450960750.0310959480.000966958

Dec-120.004488648-0.0095114799.04682E-05

Jan-130.0241044420.0101043150.000102097

Feb-13-0.051944762-0.0659448880.004348728

Mar-13-0.001366272-0.0153663990.000236126

Apr-130.0354862050.0214860790.000461652

May-130.013131544-0.0008685827.54435E-07

Jun-13-0.01844557-0.0324456970.001052723

Jul-13-0.002583548-0.0165836740.000275018

Aug-13-0.037526686-0.0515268120.002655012

Sep-130.0408196260.0268194990.000719286

Oct-130.0920934560.078093330.006098568

Nov-13-0.017604463-0.0316045890.00099885

Dec-130.0182162020.0042160761.77753E-05

Jan-14-0.031025456-0.0450255820.002027303

Feb-140.0295541790.0155540530.000241929

Mar-140.0599499430.0459498170.002111386

Apr-140.001408453-0.0125916740.00015855

May-140.0802728190.0662726930.00439207

Jun-140.049404270.0354041430.001253453

Jul-140.0189342160.004934092.43452E-05

Aug-140.0286982380.0146981110.000216034

Sep-14-0.000285306-0.0142854320.000204074

Oct-140.0463873960.0323872690.001048935

Nov-140.0297195530.0157194260.0002471

Dec-14-0.041631366-0.0556314920.003094863

Jan-150.0612205640.0472204380.00222977

Feb-150.006118299-0.0078818286.21232E-05

Mar-15-0.047818061-0.0618181870.003821488

SUM OF RETURN0.504004551

E0.014000126

VARIANCE0.001514492

RISK0.03891

Source: authors work, bseindia.comBIRLA SUN LIFE TOP 100 FUNDS

MonthReturnReturn-EJ*J

Apr-12-0.003662341-0.023330480.000544311

May-12-0.0600835-0.0797516380.006360324

Jun-120.070200850.0505327110.002553555

Jul-120.002797077-0.0168710620.000284633

Aug-120.003374123-0.0162940160.000265495

Sep-120.0903914270.0707232880.005001784

Oct-12-0.01114355-0.0308116890.00094936

Nov-120.0567198940.0370517550.001372833

Dec-120.0215252640.0018571253.44891E-06

Jan-130.010824762-0.0088433777.82053E-05

Feb-13-0.066387195-0.0860553340.00740552

Mar-13-0.007469998-0.0271381360.000736478

Apr-130.0451161830.0254480450.000647603

May-13-0.002046277-0.0217144160.000471516

Jun-13-0.025-0.0446681390.001995243

Jul-13-0.019008331-0.038676470.001495869

Aug-13-0.023416887-0.0430850250.001856319

Sep-130.0570753120.0374071740.001399297

Oct-130.1046325880.0849644490.007218958

Nov-13-0.008821403-0.0284895410.000811654

Dec-130.0334840970.0138159580.000190881

Jan-14-0.037446178-0.0571143160.003262045

Feb-140.0370696290.0174014910.000302812

Mar-140.0795856310.0599174930.003590106

Apr-140.006844605-0.0128235340.000164443

May-140.1271792870.1075111480.011558647

Jun-140.0669763950.0473082570.002238071

Jul-14-0.002623394-0.0222915330.000496912

Aug-140.0336786160.0140104770.000196293

Sep-140.013247639-0.00642054.12228E-05

Oct-140.0504077670.0307396280.000944925

Nov-140.0518584250.0321902860.001036215

Dec-14-0.011341269-0.0310094080.000961583

Jan-150.0529484260.0332802880.001107578

Feb-15-0.000517715-0.0201858540.000407469

Mar-15-0.028916965-0.0485851040.002360512

SUM OF RETURN0.708052994

E0.019668139

VARIANCE0.001953114

RISK0.04419

Source: authors work, moneycontrol.comSharpe Ratio-1.496432942

Treynor Ratio-0.061372565

Jensens Alpha0.01123592

Source: authors work.

CORRELATION 2: Showing relationship between return of Sensex and return of UTI Top 100 Funds

Return of SensexReturn of UTI

Return of Sensex1

Return of UTI0.9341347511

GRAPH 2: Showing the difference between the risk and return of Sensex and UTI Top 100 Funds

Source: authors work.TABLE 2: Showing the expected return and risk associated with Sensex and UTI Top 100 Funds and Other RatiosSENSEX

MonthReturnReturn-ED*D

Apr-12-0.004906287-0.0189064130.000357452

May-12-0.063530924-0.077531050.006011064

Jun-120.0746954260.0606952990.003683919

Jul-12-0.011118774-0.02511890.000630959

Aug-120.011219423-0.0027807037.73231E-06

Sep-120.0764895960.0624894690.003904934

Oct-12-0.013716547-0.0277166730.000768214

Nov-120.0450960750.0310959480.000966958

Dec-120.004488648-0.0095114799.04682E-05

Jan-130.0241044420.0101043150.000102097

Feb-13-0.051944762-0.0659448880.004348728

Mar-13-0.001366272-0.0153663990.000236126

Apr-130.0354862050.0214860790.000461652

May-130.013131544-0.0008685827.54435E-07

Jun-13-0.01844557-0.0324456970.001052723

Jul-13-0.002583548-0.0165836740.000275018

Aug-13-0.037526686-0.0515268120.002655012

Sep-130.0408196260.0268194990.000719286

Oct-130.0920934560.078093330.006098568

Nov-13-0.017604463-0.0316045890.00099885

Dec-130.0182162020.0042160761.77753E-05

Jan-14-0.031025456-0.0450255820.002027303

Feb-140.0295541790.0155540530.000241929

Mar-140.0599499430.0459498170.002111386

Apr-140.001408453-0.0125916740.00015855

May-140.0802728190.0662726930.00439207

Jun-140.049404270.0354041430.001253453

Jul-140.0189342160.004934092.43452E-05

Aug-140.0286982380.0146981110.000216034

Sep-14-0.000285306-0.0142854320.000204074

Oct-140.0463873960.0323872690.001048935

Nov-140.0297195530.0157194260.0002471

Dec-14-0.041631366-0.0556314920.003094863

Jan-150.0612205640.0472204380.00222977

Feb-150.006118299-0.0078818286.21232E-05

Mar-15-0.047818061-0.0618181870.003821488

SUM OF RETURN0.504004551

E0.014000126

VARIANCE0.001514492

RISK0.03891

Source: authors work, bseindia.comUTI TOP 100 FUNDS

MonthReturnReturn-EJ*J

Apr-12-0.035081502-0.052009670.002705006

May-12-0.04737422-0.0643023870.004134797

Jun-120.0670778720.0501497050.002514993

Jul-120.009754335-0.0071738325.14639E-05

Aug-120.014669052-0.0022591155.1036E-06

Sep-120.0758110010.0588828340.003467188

Oct-12-0.010160603-0.027088770.000733801

Nov-120.0450331130.0281049460.000789888

Dec-12-0.010456274-0.0273844410.000749908

Jan-130.001024656-0.0159035110.000252922

Feb-13-0.051852089-0.0687802560.004730724

Mar-13-0.008265578-0.0251937450.000634725

Apr-130.0509593140.0340311470.001158119

May-130.012559073-0.0043690941.9089E-05

Jun-13-0.028386932-0.0453150990.002053458

Jul-130.001710864-0.0152173030.000231566

Aug-13-0.051336793-0.068264960.004660105

Sep-130.0454938890.0285657220.000816

Oct-130.0750405670.05811240.003377051

Nov-13-0.015679389-0.0326075560.001063253

Dec-130.0385554230.0216272560.000467738

Jan-14-0.02977159-0.0466997570.002180867

Feb-140.0361823720.0192542050.000370724

Mar-140.0560501150.0391219480.001530527

Apr-14-0.005903556-0.0228317230.000521288

May-140.0845110640.0675828960.004567448

Jun-140.0660260630.0490978960.002410603

Jul-140.0202010220.0032728551.07116E-05

Aug-140.0425310450.0256028780.000655507

Sep-140.0186681530.0017399863.02755E-06

Oct-140.0426695840.0257414170.000662621

Nov-140.0438090240.0268808570.00072258

Dec-14-0.015162939-0.0320911060.001029839

Jan-150.0742174210.0572892540.003282059

Feb-150.004097874-0.0128302930.000164616

Mar-15-0.007807417-0.0247355840.000611849

SUM OF RETURN0.609414014

E0.016928167

VARIANCE0.001481699

RISK0.038497

Source: authors work, moneycontrol.comSharpe Ratio-1.789018183

Treynor Ratio-0.074539347

Jensens Alpha0.002531181

Source: authors work.

CORRELATION 3: Showing relationship between return of Sensex and return of HDFC Top 200 Funds

Return of SensexReturn of HDFC

Return of Sensex1

Return of HDFC0.929404261

GRAPH 3: Showing the difference between the risk and return of Sensex and HDFC Top 200 Funds

Source: authors work.TABLE 3: Showing the expected return and risk associated with Sensex and HDFC Top 200 Funds and Other RatiosSENSEX

MonthReturnReturn-ED*D

Apr-12-0.004906287-0.0189064130.000357452

May-12-0.063530924-0.077531050.006011064

Jun-120.0746954260.0606952990.003683919

Jul-12-0.011118774-0.02511890.000630959

Aug-120.011219423-0.0027807037.73231E-06

Sep-120.0764895960.0624894690.003904934

Oct-12-0.013716547-0.0277166730.000768214

Nov-120.0450960750.0310959480.000966958

Dec-120.004488648-0.0095114799.04682E-05

Jan-130.0241044420.0101043150.000102097

Feb-13-0.051944762-0.0659448880.004348728

Mar-13-0.001366272-0.0153663990.000236126

Apr-130.0354862050.0214860790.000461652

May-130.013131544-0.0008685827.54435E-07

Jun-13-0.01844557-0.0324456970.001052723

Jul-13-0.002583548-0.0165836740.000275018

Aug-13-0.037526686-0.0515268120.002655012

Sep-130.0408196260.0268194990.000719286

Oct-130.0920934560.078093330.006098568

Nov-13-0.017604463-0.0316045890.00099885

Dec-130.0182162020.0042160761.77753E-05

Jan-14-0.031025456-0.0450255820.002027303

Feb-140.0295541790.0155540530.000241929

Mar-140.0599499430.0459498170.002111386

Apr-140.001408453-0.0125916740.00015855

May-140.0802728190.0662726930.00439207

Jun-140.049404270.0354041430.001253453

Jul-140.0189342160.004934092.43452E-05

Aug-140.0286982380.0146981110.000216034

Sep-14-0.000285306-0.0142854320.000204074

Oct-140.0463873960.0323872690.001048935