Mutual Fund Industry in India

Topics: Mutual fund, Investment, Financial services Pages: 163 (53722 words) Published: February 15, 2013
The Indian mutual fund industry has definitely come a long way since it‘s inception in 1964. With the entry of private sector Mutual funds in 1993 the industry has witnessed serious competition. Therefore, it becomes essential to examine how the mutual funds have performed, and whether the trust imposed in them by the Indian investor is not out of place.

In India, at present, there are many mutual funds operating both in public and private sector. These compete with each other for mobilizing of funds with individual investors and other organization by offering attractive returns, minimum risk, high safety and prompt liquidity.

Investors and organization would like to know the comparative performance of each so as to select the best mutual fund or investment company. For this, evaluation of the performance of mutual funds and their portfolios becomes necessary. In India the research is not that exhaustive as in other countries like US, UK, Australia, Singapore and Japan, but some researchers have shown their interest in examining various aspect of mutual funds performance. Major contributors to this research are:


Obadullah & Sridhar (1991) Sarkar (1991) Adhikari & Bhosle (1994) Kale & Uma (1995) Gupta & Sehgal (2000)

Evaluation of Managed Portfolios


Jayadev (1998) Ramesh Chander (1998) Rao & Venkateshwarlu (1998) Sethu (2001) Amitabh Gupta (2001)

Methodology followed in the study is as follows:

Nature of the study: the study under taken is descriptive in nature, which tends to use Survey data and the relation ship studied will not casual in nature.

Universe: All Equity Schemes (Growth). Sample Size: Twenty-seven (27) Mutual Funds. Sample Elements: ABN Amro Mutual Fund Birla Sunlife Mutual Fund. BoB Mutual Fund. Canbank Mutual Fund. Deutsche Mutual Fund. DSP Merrill Lynch Mutual Fund Escorts Mutual Fund Fidelity Mutual Fund Franklin Templeton Mutual Fund HDFC Mutual Fund HSBC Mutual Fund

Evaluation of Managed Portfolios


ING Vysya Mutual Fund JM Financial Mutual Fund Kotak Mahindra Mutual Fund LIC Mutual Fund Morgan Stanley Mutual Fund PRINCIPAL Mutual Fund Prudential ICICI Mutual Fund Reliance Mutual Fund Sahara Mutual Fund SBI Mutual Fund Standard Chartered Mutual Fund Sundaram Mutual Fund Tata Mutual Fund Taurus Mutual Fund UTI Mutual Fund

Data Collection: For the purpose of evaluation, secondary data has been collect-ed from Various magazines, journals, books, newspapers and Internet websites.

Tools used in analysis: To analyze the collected data I used all the Quantitative and Qualitative techniques. The tools used for the collection of data were Daily NAV‘s of the schemes from the Newspaper and various Internet websites. Published material available in the library. Articles from various newspaper and journals.

Evaluation of Managed Portfolios


Use of Sharpe ratio, Treynor ratio, Jensen measure, Fama‘s net selectivity measure, and M2 approach.

Objective of the study The study aims to give a deep insight of the mutual fund industry with special emphasis on equity schemes, since these schemes are going to benefit the investors in the time to come as the stock market is soaring high and is expected to perform excellently in the future also. The mutual funds industry is going to be one of the safest & most promising avenues that is available to the investors at this point of time.

The objective of this project to evaluate the investment performance of selected mutual funds schemes (Equity) during the period of October 2005 to December 2005. The study tests the following in respect of performance evaluation of the Indian Mutual Funds

The performance of sample schemes is distinctly superior in comparisons to the relevant benchmark portfolio. The investment objectives of the mutual fund schemes are related to their systematic risk and total variability. To Rank them on the basis of their performance. For ease of presentation the decimal places has...

Bibliography: Evaluation of Managed Portfolios
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