ABSTRACT

This research investigates the mutual fund industry in India. This attempt to study comparative
performance of mutual funds of selected Indian companies. India’s mutual fund market has
witnessed phenomenal growth over the last decade. Its origin, its down and up throughout
several years and tried to predict what the future may hold for the Mutual Fund Investors in the
long run. A mutual fund is an investment vehicle made up of a pool of moneys collected from
many investors for the purpose of investing in securities such as stocks, bonds, money
market instruments and other assets. A mutual fund is a professionally-managed investment
scheme, usually run by an asset management company, who allocate the fund's investments and
attempt to produce capital gainsand/or income for the fund's investors. A mutual
fund's portfolio is structured and maintained to match the investment objectives stated in
its prospectus. The securities purchased are referred to as the fund's portfolio.
Restrictions on competing products may have acted as a catalyst for the development of money
market and (short-term) bond funds. This study was analyze and compare the performance of
different types of mutual funds in India and concluded that equity funds outperform income
funds. This study further concludes that equity fund managers possess significant market timing
ability and institutions funds managers are able to time their investments, but brokers operated
funds did not show market timing ability. Further, it has been found empirically that fund
managers are able to time their investments with the conditions in the market, and possesses
significant timing ability.