International Journal of Engineering Technology Science and Research

IJETSR
www.ijetsr.com
ISSN 2394 – 3386
Volume 5, Issue 4
April 2018

A Study on Comparative Analysis of ICICI Bank and HDFC

Bank Mutual Fund Schemes ‘MONEY ATTRACTS MONEY’

Mrs. P. Kalpana, Mrs. Seema Nazneen

Asst Prof.
School of Business Management, Anurag Group of Institutions

Abstract:- It is a well-known fact that money attracts money and but natural individuals are interesting in earning more
money in the present times than compared to the previous times due to high level inflation and reduced value of rupee
and increased cost of living. The only place where money is doubled in stock exchanges but the market suffers from high
volatility and high risk which attracts only companies, banks and high class people. People in the middle class and
below middle class find it very difficult to make investment in the exchanges as the fear losses and don’t want to risk
their hard earned money, offering solution to such money dilemma is mutual funds. The present paper brings a
comparative analysis of two popular bank mutual fund schemes.

INTRODUCTION:-
It is a well-known fact that money attracts money and but natural individuals are interesting in earning more
money in the present times than compared to the previous times due to high level inflation and reduced value
of rupee and increased cost of living. The only place where money is doubled in stock exchanges but the
market suffers from high volatility and high risk which attracts only companies, banks and high class people.
People in the middle class and below middle class find it very difficult to make investment in the exchanges
as the fear losses and don’t want to risk their hard earned money, offering solution to such money dilemma is
mutual funds. Mutual funds was first initiated by the UTI and later flourished in the market with almost every
financial institute offers mutual fund. Banks and financial institutions offer various customer pocket friendly
schemes under mutual funds that attracts the middle class and below middle class salaried employees.

Objectives of the Study:

 The primary objective of the study is to calculate and find out the risk and return of selected mutual funds
of two popular banks and make a comparative analysis.
 The secondary and supportive object to find out which scheme is doing well and which bank performs
well in the market.
Scope: The study covers mutual funds data of both the banks for a period of 100 days. And is limited only to
ICICI bank & HDFC Bank schemes.

Research Methodology:
For the study and analysis purpose primary data is collected from the company websites, stock exchanges and
newspapers. To support secondary data is also collected from various printed sources. For analysis purpose
statistical tools are used such as variance, covariance and standard deviation as a measurement of risk for beta.

MUTUAL FUNDS:-
Mutual fund is a collection of small units of funds from different investors investing in a proper system
through asset Management Company in prioritized sectors and sharing the profits earned from such
investment with the investors according to their units. Now a days people are much aware of the various

1024 Mrs. P. Kalpana, Mrs. Seema Nazneen

 International Journal of Engineering Technology Science and Research
IJETSR
www.ijetsr.com
ISSN 2394 – 3386
Volume 5, Issue 4
April 2018

schemes and slowly thr trends is shifting from tradition investment schemes such as fixed deposits and post
office deposits to modern investment tools. Even the traditional investors such as insurance companies invest
the funds in mutual fund schemes The various types of schemes available are
 Open ended schemes
 Close ended schemes
Funds offered under the scheme are:
 Equity growth fund
 Balanced growth fund
 Fixed income fund
 Indexed fund
 Specialty fund
 Fund of funds: and
 Diversify by investment style.

ANALYSIS:-
The following formulas have been used for the analysis purpose
 Return
Current day closing Price − Previous day closing price
Returns =
Previous day closing price
 Average Return
Total returns
Average Return =
Number of returns
 Risk
Risk refers dispersion of variable. It is usually measured by variance and Standard Deviation.
 Variance
Variance is the sum of square of deviations of actual returns from average returns.
∑
Variance= ( )
D=Deviation from returns
n= number of values
 Standard Deviation:
It is statistical measure of variability of a distribution around its mean. It is the square root of Variance.
Standard deviation = √Variance
 Beta Measurement and Analysis:
Beta is a measure of system risk. Beta measure the stock’s volatility in relation to the market. By definition,
the market has a beta of 1 and individual funds are ranked according to how much they deviate from market.
To calculate a stock’s beta of data is needed. First, closing stocks price for the stocks which are being
examined and closing prices for the index chosen as a proxy for the stock market (Nifty).
Beta is calculated by using the following formula
∑( )( )
Covariance =
( x-x ) = Nifty (Deviation of Nifty (D))
(y-y ) = Company funds (Deviation of Funds (D))
∑( x-x ) (y-y ) = Sum of deviation of Nifty and company’s funds

1025 Mrs. P. Kalpana, Mrs. Seema Nazneen

 International Journal of Engineering Technology Science and Research
IJETSR
www.ijetsr.com
ISSN 2394 – 3386
Volume 5, Issue 4
April 2018

N= number of values
Beta =
For the purpose of data analysis and interpretation the following ICICI prudential Mutual Funds and HDFC
mutual funds have been chosen:
 Equity funds
 Balance funds
 Debt funds
 Fund of funds
 Exchange Trade funds
Each product has been analyzed using the following tools and the results tabulated, presented graphically and
the evaluation of the same has been given under the caption 'Interpretation' below the graph.

Table – 1
Analysis Net Asset Value (NAV) of the ICICI Mutual Fund’s have been taken for the period of
01/08/2017 to 10/11/2017
Amount in Rs
DATE Market Equity Balance Debt Fund of Exchange
Index Fund Fund Fund Funds Trade
funds
AVERAGE 10047 12.54 31 54.773 48.97 273.07
Figure -2: Graphical representation of ICICI Mutual Funds Schemes of average Return
12000

10000

8000

6000

4000

2000

0
02/08/2017
04/08/2017
08/08/2017
10/08/2017
14/08/2017
17/08/2017
21/08/2017
23/08/2017
28/08/2017
30/08/2017
01/09/2017
05/09/2017
07/09/2017
11/09/2017
13/09/2017
15/09/2017
19/09/2017
21/09/2017
25/09/2017
27/09/2017
29/09/2017
04/10/2017
06/10/2017
10/10/2017
12/10/2017
16/10/2017
18/10/2017
23/10/2017
25/10/2017
27/10/2017
31/10/2017
02/11/2017
06/11/2017
08/11/2017
10/11/2017

Market Equity Fund Balance Fund Debt Fund of Funds Exchange Trade funds

Interpretation of the table and Graph:-

As it can be observed from the above table and graph all five types of mutual funds of ICICI bank market
index has been taken for different dates and exchange trade funds seems to be highest all the days and all
others maintain a consistency throughout.

1026 Mrs. P. Kalpana, Mrs. Seema Nazneen

 International Journal of Engineering Technology Science and Research
IJETSR
www.ijetsr.com
ISSN 2394 – 3386
Volume 5, Issue 4
April 2018

Table – 02
Calculation of Equity funds Risk for the period of 01/08/2017 to 10/11/2017
DATE Market Market Equity Equity D(X- ) I(Y- ) DI
Index X Returns Fund Y Returns

Total 0.0216 0.0224 0.0340 0.0338 0.0331

Average 0.0003 0.0003

 Variance:-
∑ ∑
Nifty = ( )
ICICI Balance Funds = ( )
. .
= =
( ) ( )
=3.4343 =3.4141
 Standard Deviation = √Variance
Nifty = √Variance ICICI Balance Funds= √Variance
=√ . = √3.4141
= 1.8531 = 1.8477
∑( )( )
 Covariance =
.
=

=3.3434
 Beta =
.
= .
=1.8035
Figure – 3 Graphical representation of Equity funds Returns
0.015
0.01
0.005
0 Market Returns
02/08/2017
04/08/2017
08/08/2017
10/08/2017
14/08/2017
17/08/2017
21/08/2017
23/08/2017
28/08/2017
30/08/2017
01/09/2017
05/09/2017
07/09/2017
11/09/2017
13/09/2017
15/09/2017
19/09/2017
21/09/2017
25/09/2017
27/09/2017
29/09/2017
04/10/2017
06/10/2017
10/10/2017
12/10/2017
16/10/2017
18/10/2017
23/10/2017
25/10/2017
27/10/2017
31/10/2017
02/11/2017
06/11/2017
08/11/2017
10/11/2017

-0.005 Equity Returns

-0.01
-0.015
-0.02

Interpretation:
The Equity returns and the market index are being overlapping with each other and equity value has fallen
down when compared with the market index returns. This shows the Asset management is just better from
falling down the value.

1027 Mrs. P. Kalpana, Mrs. Seema Nazneen

 International Journal of Engineering Technology Science and Research
IJETSR
www.ijetsr.com
ISSN 2394 – 3386
Volume 5, Issue 4
April 2018

Table – 3
Calculation of Balance funds Risk for the period of 01/08/2017 to 10/11/2017
DATE Marke Market Balance Balance D(X- I(Y- DI
t Index Return(X Funds Funds ) )
) Returns
(Y)
Total -0.0189 -0.0492 1.0847 0.1644 0.0651

Average -0.0003 -0.0007

 Variance
∑ ∑
Nifty = ICICI Balance Funds =
( ) ( )
. .
= =
( ) ( )
= 0.0109 =0.0016
 Standard Deviation = √Variance
Nifty = √Variance ICICI Balance Funds= √Variance
=√0.0109 = √0.0016
= 0.1044 = 0.004
∑( )( )
 Covariance =
.
=
=6.5757
Beta =
6.5757
=
0.1044
=0.0062
Figure – 4: Graphical representation of Balanced funds Returns
0.04

0.03

0.02
Market Return (X)
0.01
Balance Funds Returns(Y) D(X-
0
04/08/2017
10/08/2017
17/08/2017
23/08/2017
30/08/2017
05/09/2017
11/09/2017
15/09/2017
21/09/2017
27/09/2017
04/10/2017
10/10/2017
16/10/2017
23/10/2017
27/10/2017
02/11/2017
08/11/2017

-0.01

-0.02

Interpretation:
The Balance funds returns are more when compared with the market returns. It stands high during last
hundred working days of 2017 and there assets are managed well. Due to this the returns are being raised.

1028 Mrs. P. Kalpana, Mrs. Seema Nazneen

 International Journal of Engineering Technology Science and Research
IJETSR
www.ijetsr.com
ISSN 2394 – 3386
Volume 5, Issue 4
April 2018

Table – 4
Calculation of Debt Risk for the period of 01/08/2017 to 10/11/2017
DATE Market Market Debt Debt
Index Return Funds Funds D(X- I(Y- DI
(X) Returns ) )
(Y)
Total 0.0216 -0.0040 0.0389 0.00114 0.000001
Average 0.0003 -0.0001

 Variance
∑ ∑
Nifty = ( )
ICICI Balance Funds = ( )
. .
= =
( ) ( )
= 3.9292 = 1.4141
 Standard Deviation = √Variance
Nifty = √Variance ICICI Balance Funds= √Variance
=√3.9292 = √1.4141
= 1.9822 = 1.1891
∑( )( )
 Covariance =
.
=
= 1.1891
Beta =
1.1891
=
1.9822
= 0.5998
Figure -5: Graphical representation of Debt funds Returns
0.015
0.01
0.005
0 Market Return (X)
03/08/2017
08/08/2017
11/08/2017
17/08/2017
22/08/2017
28/08/2017
31/08/2017
05/09/2017
08/09/2017
13/09/2017
18/09/2017
21/09/2017
26/09/2017
29/09/2017
05/10/2017
10/10/2017
13/10/2017
18/10/2017
24/10/2017
27/10/2017
01/11/2017
06/11/2017
09/11/2017

-0.005 Debt Funds Returns (Y)

-0.01
-0.015
-0.02

Interpretation:
The Debt fund flow is not equal with the market returns and the risk free returns are always over lapping with
the debts. The market index will be playing main role in the returns of funds. The Asset management of debt
funds are very poor compared to other type of funds.

1029 Mrs. P. Kalpana, Mrs. Seema Nazneen

 International Journal of Engineering Technology Science and Research
IJETSR
www.ijetsr.com
ISSN 2394 – 3386
Volume 5, Issue 4
April 2018

Table -05
Calculation of Fund of Funds Risk for the period of 1/08/2017 to 27/10/2017
DATE Market Market Fund of funds Fund of Funds
Index returns Return
AVERAGE 9992.27 0.0004 48.88 6.4407
S.D 0.0064 0.0038
Beta 0.0464
Figure – 6: Graphical representation of Fund of Funds Returns
0.025
0.02
0.015
0.01
0.005
Fund of Funds Return
0
Market returns
03/08/2017
08/08/2017
11/08/2017
17/08/2017
22/08/2017
28/08/2017
31/08/2017
05/09/2017
08/09/2017
13/09/2017
18/09/2017
21/09/2017
26/09/2017
29/09/2017
05/10/2017
10/10/2017
13/10/2017
18/10/2017
24/10/2017
27/10/2017
-0.005
-0.01
-0.015
-0.02
-0.025

Interpretation:
The market returns are more than the Fund of Funds flow they are involved with the high risk. The fund of
fund flow is sometimes negative and sometimes positive due to the market index returns
Table -06
Calculation of Exchange Trade Fund Risk for the period of 1/08/2017 to 27/10/2017
DATE Market Index Market Exchange Exchange Trade
Return Trade funds funds Returns
Average 9992.27 0.000369 273.504 0.0001847
S.D 0.0064 0.0068
Beta -0.3384

Figure – 7: Graphical representation of Exchange Trade funds Returns

0.02

0.01

0 Exchange Trade funds Returns

22/092017
01/08/2017
04/08/2017
09/08/2017
14/08/2017
18/08/2017
23/08/2017
29/08/2017
01/09/2017
06/09/2017
11/09/2017
14/09/2017
19/09/2017

27/09/2017
03/10/2017
06/10/2017
11/10/2017
16/10/2017
19/10/2017
25/10/2017

-0.01 Market Return

-0.02

-0.03

1030 Mrs. P. Kalpana, Mrs. Seema Nazneen

 International Journal of Engineering Technology Science and Research
IJETSR
www.ijetsr.com
ISSN 2394 – 3386
Volume 5, Issue 4
April 2018

Interpretation:
Exchange Trade is purely depends on the international market when the funds are falling down they try to
minimize the risk. The returns are very high compared with other funds.
Table -07
Calculation of ICICI Mutual funds Sharpe and Treynor ratio
Average Standard Beta Rf Sharpe Treynor
Returns Deviation Ratio (Rm- Ratio (Rm -
Rm Rf)/SD Rf)/Beta

0.0004 0.0020 0.2764 0.0004 0 0

Equity funds

Balanced funds 0.0007 0.0055 0.7482 0.0004 0.0545 4.0096

-3.2203 0.0012 -0.0075 0.0004 -2683.916 429.4266

Debt funds

6.4407 0.0038 0.0464 0.0004 1694.8157 138.7995

Fund of Funds
0.0001 0.0068 0.3384 0.0004 -0.0441 0.0008
Exchange Trade
funds

Calculation of Sharpe Ratios

 Equity funds = (0.0004 - 0.0004)/0.2764=0
 Balanced funds = (0.0007 – 0.0004)/0.0055= 0.0545
 Debt funds = (-3.2203-0.0004)/0.0012= -2683.9166
 Fund of funds = (6.4407 – 0.0004)/0.0038= 1694.8157
 Exchange of funds = (0.0001 – 0.0004)/0.0068 = 0.0008
Figure – 8: Graphical representation of Sharpe Ratio of ICICI Mutual Funds

Sharpe Ratio (Rm-Rf)/SD

2000

0
Equity fundsBalanced fundsDebt funds Fund of Funds
Exchange Trade funds Sharpe Ratio (Rm-Rf)/SD
-2000

-4000

Interpretation:
In the above graph we can observe that the equity, balanced and Exchange trade funds remains same. The
debt has fallen due to ineffective funds management. In this Fund of funds is ranking first compared with all
funds.

1031 Mrs. P. Kalpana, Mrs. Seema Nazneen

 International Journal of Engineering Technology Science and Research
IJETSR
www.ijetsr.com
ISSN 2394 – 3386
Volume 5, Issue 4
April 2018

Calculation of Treynor Ratio

 Equity funds = (0.0004 - 0.0004)/0.2764 = 0
 Balanced funds = (0.0007 – 0.0004)/ 0.7482= 4.0096
 Debt funds = (-3.2203 -0.0004)/-0.0075 = 429.4266
 Fund of funds = (6.4407 – 0.0004)/ 0.0464 = 138.7995
 Exchange of funds = (0.0001 – 0.0004)/ -0.3384= 0.0008
Figure – 9: Graphical representation of Treynor Ratio of ICICI mutual fund

Treynor Ratio (Rm - Rf)/Beta

500
400
300
200 Treynor Ratio (Rm - Rf)/Beta
100
0
Equity fundsBalanced fundsDebt funds Fund of Funds
Exchange Trade funds

Interpretation:
In Treynor method the Equity fund, Balanced funds and exchange funds are being constant. The debt funds
are standing first among these five types of funds. Fund of funds will be standing next after debt funds.
Table – 8
Analysis Net Asset Value (NAV) of the HDFC Mutual Fund’s have been taken for the period of
01/08/2017 to 10/11/2017

DATE Market Equity Balance Debt Fund of Funds Exchange

Index Fund Fund Fund Trade
funds
AVERAGE 10046.97 12.12 31.59 38.67 9.78 1025.49

Figure – 10 Graphical representations of HDFC Mutual Funds Schemes of average

Returns
12000
10000 Market Index
8000
6000 HDFC Equity Fund
4000
2000 HDFC Balance Fund
0
HDFC Debt
04/08/2017
10/08/2017
17/08/2017
23/08/2017
30/08/2017
05/09/2017
11/09/2017
15/09/2017
21/09/2017
27/09/2017
04/10/2017
10/10/2017
16/10/2017
23/10/2017
27/10/2017
02/11/2017
08/11/2017

HDFC Fund of Funds

HDFC Exchange Trade funds

Interpretation:
The above graph represents the net asset value of the various schemes in the mutual funds. The Fund of funds
is standing next after the Exchange Trade Funds.

1032 Mrs. P. Kalpana, Mrs. Seema Nazneen

 International Journal of Engineering Technology Science and Research
IJETSR
www.ijetsr.com
ISSN 2394 – 3386
Volume 5, Issue 4
April 2018

Table – 09
Calculation of Equity fund Risk for the period of 01/08/2017 to 10/11/2017
DATE Market Market Equity Equity D(X- )
Index(X) Returns Fund Returns H(Y- DH
Y )
Total 0.0216 0.0537 0.0340 0.1979 0.0809
Average 0.0003 0.0008

 Variance
∑ ∑
Nifty = ( )
HDFC Balance Funds = ( )
. .
= =
( ) ( )
=3.4343 = 0.0019
 Standard Deviation = √Variance
Nifty = √Variance HDFC Balance Funds= √Variance
=√ . = √0.1979
= 1.8531 = 0.4448
∑( )( )
Covariance =
.
=
=8.1717
Beta =
8.1717
=
1.8531

=4.4097
Figure – 11: Graphical representation of Equity Fund Returns
0.04
0.03
0.02
0.01
0
-0.01 Market Returns
04/08/2017
10/08/2017
17/08/2017
23/08/2017
30/08/2017
05/09/2017
11/09/2017
15/09/2017
21/09/2017
27/09/2017
04/10/2017
10/10/2017
16/10/2017
23/10/2017
27/10/2017
02/11/2017
08/11/2017

-0.02
-0.03 Equity Returns

Interpretation:
The equity funds are more fluctuating when compared with the market index.The market index and the equity
returns are overlapping with each other. There is a positive flow after 24th October and falls down on 07th
November.

1033 Mrs. P. Kalpana, Mrs. Seema Nazneen

 International Journal of Engineering Technology Science and Research
IJETSR
www.ijetsr.com
ISSN 2394 – 3386
Volume 5, Issue 4
April 2018

Table – 10
Calculation of Balance fund Risk for the period of 01/08/2017 to 10/11/2017
DATE Marke Market Balance Balance
t Returns Funds funds D(X- ) H(Y- DH
Index X ReturnsY )
Total 0.0216 0.0170 0.0340 0.0194 0.0000
5 096
Average 0.0003 0.0002

 Variance
∑ ∑
Nifty = HDFC Balance Funds =
( ) ( )
. .
= =
( ) ( )
=3.4343 = 1.92555
 Standard Deviation = √Variance
Nifty = √Variance HDFC Balance Funds= √Variance
=√ . = √1.92555
= 1.8531 = 1.3876
∑( )( )
Covariance =
.
=
=9.6969
Beta =
9.6969
=
1.8531

=5.2327
Figure – 12: Graphical representation of Balance funds Returns
0.015

0.01

0.005

0 Market Returns X
04/08/2017
10/08/2017
17/08/2017
23/08/2017
30/08/2017
05/09/2017
11/09/2017
15/09/2017
21/09/2017
27/09/2017
04/10/2017
10/10/2017
16/10/2017
23/10/2017
27/10/2017
02/11/2017
08/11/2017

-0.005 Balance funds ReturnsY

-0.01

-0.015

-0.02

Interpretation:
The balance funds are at the initial stage in the market. The balance funds are running with only positive only

1034 Mrs. P. Kalpana, Mrs. Seema Nazneen

 International Journal of Engineering Technology Science and Research
IJETSR
www.ijetsr.com
ISSN 2394 – 3386
Volume 5, Issue 4
April 2018

there is no fall of funds.

Table – 11
Calculation of Debt funds Risk for the period of 01/08/2017 to 10/11/2017
DATE Market Market Debt Debt
Index Returns Fund Funds D(X- ) H(Y- ) DH
Returns

Total 0.0216 -0.0063 0.0340 0.00296 -0.009112

Average 0.0003 -0.0001

 Variance
∑ ∑
Nifty = ( )
HDFC Balance Funds = ( )
. .
= =
( ) ( )
=3.4343 = 2.9898
 Standard Deviation = √Variance
Nifty = √Variance HDFC Balance Funds= √Variance
=√ . = √2.9898
= 1.8531 = 1.7291
∑( )( )
Covariance =
.
=
= -9.2040
Beta =
−9.2040
=
1.8531

= -4.9668

Figure – 13: Graphical representation of Debt fund Returns

0.015
0.01
0.005
0 Market Returns X
03/08/2017
08/08/2017
11/08/2017
17/08/2017
22/08/2017
28/08/2017
31/08/2017
05/09/2017
08/09/2017
13/09/2017
18/09/2017
21/09/2017
26/09/2017
29/09/2017
05/10/2017
10/10/2017
13/10/2017
18/10/2017
24/10/2017
27/10/2017
01/11/2017
06/11/2017
09/11/2017

-0.005 Balance funds ReturnsY

-0.01
-0.015
-0.02

Interpretation:
The market flow is fluctuating. The balance funds returns poor performing in the last 3 months. They are just
flowing in positive flow there is no losses in this process.

1035 Mrs. P. Kalpana, Mrs. Seema Nazneen

 International Journal of Engineering Technology Science and Research
IJETSR
www.ijetsr.com
ISSN 2394 – 3386
Volume 5, Issue 4
April 2018

Table – 12
Calculation of Fund of funds Risk for the period of 01/08/2017 to 27/10/2017
DATE Market Market Fund of Fund of funds
Index Returns Funds Returns
AVERAGE 9992.27 0.0003 9.79 0.0005
S.D 0.0064 0.0076
Beta -0.0589

Figure – 14: Graphical representation of Fund of fund Returns

0.03
0.02
0.01
Market Returns
0
Fund of funds Returns
22/092017
01/08/2017
04/08/2017
09/08/2017
14/08/2017
18/08/2017
23/08/2017
29/08/2017
01/09/2017
06/09/2017
11/09/2017
14/09/2017
19/09/2017

27/09/2017
03/10/2017
06/10/2017
11/10/2017
16/10/2017
19/10/2017
25/10/2017
-0.01
-0.02
-0.03

Interpretation:
The funds of funds are involved with the high risk. They are always being par away from the market index
values. The net asset value is always fluctuating
Table – 13
Calculation of Exchange Trade fund Risk for the period of 01/08/2017 to 27/10/2017
DATE Market Market Exchange Trade Exchange
Index Returns funds Trade
Funds Returns
AVERAGE 9992.27 0.0004 1019.53 0.0004
S.D 0.0064 0.0064
Beta 0.8696

Figure – 15: Graphical representation of Exchange Trade Funds Returns

0.015
0.01
0.005
0 Market Returns
22/092017
01/08/2017
04/08/2017
09/08/2017
14/08/2017
18/08/2017
23/08/2017
29/08/2017
01/09/2017
06/09/2017
11/09/2017
14/09/2017
19/09/2017

27/09/2017
03/10/2017
06/10/2017
11/10/2017
16/10/2017
19/10/2017
25/10/2017

-0.005 Exchange Trade Funds Returns

-0.01
-0.015
-0.02

Interpretation:
The exchange trade is depending on the market index of international market. The funds are being invested in

1036 Mrs. P. Kalpana, Mrs. Seema Nazneen

 International Journal of Engineering Technology Science and Research
IJETSR
www.ijetsr.com
ISSN 2394 – 3386
Volume 5, Issue 4
April 2018

the international market and they are earning well always overlap with the market index returns.
Table – 14
Calculation of HDFC Mutual funds Sharpe and Treynor ratio
HDFC Funds Average Standard Beta Rf Sharpe Ratio Treynor
Returns Rm Deviation (Rm-Rf)/SD Ratio (Rm -
Rf)/Beta

Equity funds 0.0007 0.0085 1.168 0.0004 0.035294118 0.00025685

Balanced 0.0002 0.0001 0.002 0.0004 -2 -0.1

funds

Debt funds -4.576 0.0013 0.0064 0.0004 -3520.30769 -715.0625

Fund of 0.0005 0.0076 -0.0589 0.0004 0.013157895 -0.0016978

Funds

Exchange 0.0004 0.0064 0.8696 0.0004 0 0

Trade funds

Calculation of Sharpe Ratios

 Equity funds = (0.0007 - 0.0004)/0.0085=0.0352
 Balanced funds = (0.0002 – 0.0004)/0.0001= -2
 Debt funds = (-4.576 -0.0004)/0.0013= -3520.30
 Fund of funds = (0.0005 – 0.0004)/0.0076= 0.0131
 Exchange of funds = (0.0004 – 0.0004)/0.0064 = 0
Figure – 16: Graphical representation of Sharpe Ratio of HDFC Mutual Fund

Sharpe Ratio (Rm-Rf)/SD

2000

0
Equity fundsBalanced funds Debt funds Fund of Funds
Exchange Trade funds Sharpe Ratio (Rm-Rf)/SD
-2000

-4000

Interpretation:
In the above graph we can observe that the equity fund and fund of funds flow is always similar.
But the debt fund is involved with the high risk and its stand last among the other schemes of mutual funds.
The exchange trade funds are constant in nature they are negative.

Calculation of Treynor Ratio

 Equity funds = (0.0007 - 0.0004)/1.168 = 0.0002
 Balanced funds = (0.0002 – 0.0004)/ 0.002 = -0.1

1037 Mrs. P. Kalpana, Mrs. Seema Nazneen

 International Journal of Engineering Technology Science and Research
IJETSR
www.ijetsr.com
ISSN 2394 – 3386
Volume 5, Issue 4
April 2018

 Debt funds = (-4.576 -0.0004)/0.0064 = -715.0625

 Fund of funds = (0.0005 – 0.0004)/ -0.0589 = 0.0131
 Exchange of funds = (0.0004 – 0.0004)/ 0.8696 = 0

Figure – 17: Graphical representation of Treynor Ratio of HDFC Mutual Fund

Treynor Ratio (Rm - Rf)/Beta

200
0
-200 Equity fundsBalanced fundsDebt funds Fund of Funds
Exchange Trade funds
Treynor Ratio (Rm - Rf)/Beta
-400
-600
-800

Interpretation:
In the above graph we can observe the various position of mutual fund schemes of HDFC. The debt funds are
involved with the high risk and it stands among the few schemes. The balanced funds are standing first among
the all the schemes.

CONCLUSION
HDFC & ICICI are the two banks who always have competition of getting the high Assets. ICICI mutual
funds are not performing well as the asset management is not done in a perfect manner due to this it is getting
the huge losses. Children Gift plan is policy where people most interested to invest because it is giving high
rate of bonus and growth plan is well functioning in manner. Debt funds are also part of mutual funds but
ICICI mutual funds is into negative whereas the HDFC Mutual funds are performing well in the market. In the
mutual funds they just pool the funds from the various investor and they bank will be investing that money in
to various sectors like automobile, Pharmaceuticals, technology development and for research. In addition,
mutual funds react more strongly to analyst information when it appears to be more credible.

1038 Mrs. P. Kalpana, Mrs. Seema Nazneen