Comparative Study of Mutual Funds

Topics: Mutual fund, Investment, Financial services Pages: 54 (13432 words) Published: April 2, 2013
- Executive Summary
- Introduction
- Literature review
- Purpose of the study
- Objectives

UTI securities ltd. (UTISEL) has been working as an independent professional entity for providing financial intermediary and advisory services to corporate institutional and retail clientele. This project emphasis on, “The Performance of Mutual Funds with reference to Risk and Returns”, conducted at UTI Securities Ltd. In this project I have analyzed the Mutual Funds Schemes, particularly the Equity Diversified open ended (growth) schemes and evaluated the returns and the risk associated with those schemes.


❖ To know the performance of Mutual Fund of different companies.

❖ To evaluate the returns and the risk associated with mutual funds.

❖ To evaluate the investment performance of mutual funds with risk adjustment, by using the theoretical parameters as suggested by William. Sharpe, Treynor and Jensen.


Not single work is an exception to the limitations every work has got its limitations. The data collection here in this project is strictly confined to the secondary sources. No primary data was associated with the project. Collecting historical NAV is very difficult. Selection of the schemes for the study is also a very difficult task because of the wide variety of schemes. The results of the study are subjected to inconsistencies arising out of the assumptions made to make the portfolios comparable viz., sample selection procedure, portfolio proportion assumption etc.

Data source:
Secondary data - Reports from UTI securities and other reports from related websites.

An investment means employment of funds on assets (i.e. securities or mutual funds or any of the investment avenues) with the aim of earning income as well as capital appreciation. There are mainly two attributes while investing to any of the funds i.e. time and risk. There are mainly four objectives, which the investments activities will carry on. Those are: ❖ Returnfrom the investment

❖ Risk involved
❖ Liquidity
❖ Hedge against inflation
❖ Safety
❖ Convenience
There are many alternatives investment avenues which are open to the investors to suit their needs and nature .The selection of investment alternatives depends up on the required level of return and the risk tolerance level. These alternatives range from financial securities to traditional non-securities investment. Following are the various investment alternatives.

Negotiable and fixed income securities
❖ Equity shares
❖ Preference share
❖ Debentures
❖ Bonds
❖ Indira vikas patra &Kisan Vikas patra
❖ Government securities
❖ Money market securities (i.e. treasury bill, commercial paper, certificate of Deposit etc)

Non-negotiable securities
❖ Bank deposit
❖ Post office deposit
❖ NBFC deposit
❖ Tax saving schemes
❖ Public provident fund scheme
❖ National saving scheme
❖ Life insurance
❖ Mutual funds
❖ Real estate

Introduction to Mutual Funds
What is a Mutual Fund?
Like most developed and developing countries the mutual fund cult has been catching on in India. There are various reasons for this. Mutual funds make it easy and less costly for investors to satisfy their need for capital growth, income and/or income preservation.

And in addition to this a mutual fund brings the benefits of diversification and money management to the individual investor, providing an opportunity for financial success that was once available only to a select few....
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