A Study of Performance of Three Selected Mutual Fund Schemes of Equity Growth in The Last Five Years

A STUDY OF PERFORMANCE OF THREE SELECTED MUTUAL FUND SCHEMES OF EQUITY
GROWTH IN THE LAST FIVE YEARS
A STUDY OF PERFORMANCE OF THREE SELECTED MUTUAL

FUND SCHEMES OF EQUITY GROWTH IN THE LAST FIVE
YEARS
Project report submitted in partial fulfillment of the requirements for the award for the
degree of
MASTER OF BUSINESS ADMINISTRATION
OF
BANGALORE UNIVERSITY
By
Faheem Firdous
17YACMD054
Under the guidance of
Mr. Ravindra Kulkarni
Assistant Professor
PRESIDENCY COLLEGE
2018-2019
DECLARATION BY THE STUDENT
I, hereby, declare that “A STUDY OF PERFORMANCE OF THREE SELECTED

MUTUAL FUND SCHEMES OF EQUITY GROWTH IN THE LAST FIVE YEARS”
is the result of the project work carried out by me under the guidance of Mr. RAVINDRA
KULKARNI, (Asst. Prof.) in partial fulfillment for the award of MASTERS DEGREE IN
BUSINESS ADMINISTRATION by BANGALORE UNIVERSITY.
I also declare that this project is the outcome of my own efforts and that it has not been
submitted to any other University or Institute for the award of any other degree or Diploma or
Certificate.
Place: Bangalore Name : Faheem Firdous
Date: Registration Number: 17YACMD054

GUIDE CERTIFICATE
This is to certify that the project report, titled, “A STUDY OF PERFORMANCE OF

THREE SELECTED MUTUAL FUND SCHEMES OF EQUITY GROWTH IN THE
LAST FIVE YEARS”, submitted by FAHEEM FIRDOUS bearing registration number
17YACMD054 to BANGALORE UNIVERSITY, Bangalore for the award of Degree of
MASTERS OF BUSINESS ADMINISTRATION is a record of work carried out by him
under my guidance.
Place: Bangalore
Date: Signature:
Prof. Ravindra Kulkarni

Centre for Management Studies
Presidency College, Bangalore
ACKNOWLEDGEMENT
I would like to express my gratitude towards all the people who have helped me with the
successful completion of the project. Without their encouragement, active guidance and
cooperation this project would not have been a success.
I would like to gratefully acknowledge BANGALORE UNIVERSITY for this opportunity,

PRESIDENCY COLLEGE, for the facility for completion of this project, our dean DR. R
VENKATARAMAN for his support and my guide PROF. RAVINDRA KULKARNI, for
his active guidance in successfully completing this project.
Finally I am thankful to my parents and friends for their continued moral and material
support throughout the course and helping in finalizing the project.
STUDENT: Faheem Firdous
REGISTER NUMBER: 17YACMD054

ABSTRACT
Mutual fund is the type of investment in which the investor’s money is pooled into various
investment portfolios in order to reduce risk. The pooled money is invested in both capital
market and money market. The earnings are distributed on the basis of number of units held
by the investors. Mutual funds are easy to buy and sell. It can be either bought directly from
the fund company or through a third party. The mutual fund industry started in India in a
small way with the UTI act creating what was effectively a small savings division
within the RBI. Over a period of 25 years this grew fairly successfully and gave
investors a good return. In 1989 public sector banks and financial institutions were
allowed to float mutual funds and their success emboldened the government to allow the
private sector to foray into this area. The advantages of mutual fund are professional
management, diversification, and economies of scale, simplicity, and liquidity. The biggest
problems with mutual funds are their costs and fees it include purchase fee, redemption fee,
exchange fee, management fee, account fee & transaction costs. There are some
loads which add to the cost of mutual fund. Load is a type of commission depending on the
type of funds.
This study is based on equity based mutual funds of three companies’ viz. HDFC, Reliance
and UTI. This study mainly focuses on the growth of equity based mutual funds of the
selected companies on the basis of prices per unit and gain/loss percentages in the last five
years and to provide recommendations to the investors.
TABLE OF CONTENTS
PAGE
CHAPTER TITLE
NO
1 INTRODUCTION
1.1 INDUSTRY PROFILE 1
1.2 LIBERALIZATION 1
1.3 RBI AS AREGULATORY BODY 2
1.4 MUTUAL FUNDS 2
1.5 CONCEPT 2-3
1.6 WHY TO CHOSE MUTUAL FUNDS 3
1.7 ADVANTAGES OF MUTUAL FUNDS 4
1.8 DISADVANTAGES OF MUTUAL FUNDS 5
1.9 CATEGORIES OF MUTUAL FUNDS 5-8
1.10 RECENT TRENDS IN MUTUAL FUNDS 8-9
1.11 RELIANCE MUTUAL FUND 10
1.12 UTI MUTUAL FUND 11
1.13 HDFC MUTUAL FUND 12-13
2 BACKGROUND AND OBJECTIVES
2.1 NEED OF THE STUDY 14
2.2 STATEMENT OF THE PROBLEM 14
2.3 SCOPE OF THE STUDY 14
2.4 BACKGROUND OF THE STUDY 14-17
2.5 OBJECTIVES 17
3 TRAINING METHODS AND ACTIVITIES

3.1 RESEARCH DESIGN 18
3.2 SOURCE/TOOLS OF DATA 18
SAMPLING PLAN/SELECTION OF MUTUAL FUNDS FOR

3.3 18
THE STUDY
3.4 DATA ANALYSIS 18
3.5 ACTIVITIES 18
4 LEARNING OUTCOMES
4.1 LEARNING OUTCOMES 19
5 DATA ANALYSIS AN INTERPRETATION
5.1 HDFC EQUITY MUTUAL FUNDS 20-24
5.2 RELIANCE EQUITY MUTUAL FUNDS 25-29
5.3 UTI EQUITY MUTUAL FUNDS 30-34
COMPARISON BETWEEN THREE SELECTED MUTUAL

5.4 35-40
FUNDS
6 KEY FINDINGS AND CONCLUSION
6.1 FINDINGS 41
6.2 CONCLUSION 41
7 RECOMMENDATIONS
7.1 RECOMMENDATIONS 42
SUPPORTING DOCUMENTS
REFERENCES
LIST OF TABLES
SL. NO TABLE DESCRIPTION PAGE NO
INCREASE/DECREASE IN PRICES OF EQUITY MUTUAL

5.1.1 20
FUND IN THE YEAR 2013-14

5.1.2 21

5.1.3 22

5.1.4 23

5.1.5 24

5.2.1 25

5.2.2 26

5.2.3 27

5.2.4 28

5.2.5 29

5.3.1 30

5.3.2 31

5.3.3 32

5.3.4 33

5.3.5 34
PERFORMANCE OF SELECTED MUTUAL FUNDS ON THE

5.4.1 35
BASIS OF GAIN/LOSS PERCENTAGE FOR THE YEAR 2013-14

5.4.2 36

5.4.3 37

5.4.4 38
COMPARISON BETWEEN THREE SELECTED MUTUAL

5.4.5 FUND COMPANIES ON THE BASIS OF GAIN/LOSS 39
PERCENTAGE
LIST OF GRAPHS
SL. NO GRAPH DESCRIPTION PAGE NO
5.1.1 INCREASE/DECREASE IN PRICES OF EQUITY MUTUAL 20















5.4.1 PERFORMANCE OF SELECTED MUTUAL FUNDS ON THE 35




5.4.5 COMPARISON BETWEEN THREE SELECTED MUTUAL FUND 40

COMPANIES ON THE BASIS OF GAIN/LOSS PERCENTAGE
CHAPTER 1
INTRODUCTION
1.1 INDUSTRY PROFILE:
The primary bank originated in Asia was in the eighteenth century. With its assistance, the
final bank of Asian country that came into existence in 1986. After that Bank of geographical
region came into place, however each of these banks that were primary in nature does not
seem to be into existence now. In the year 1806, a bank was established and during the early
days it was named as Bank of Bengal and after that it was changed to the State Bank of India.
After some time, many foreign banks came into existence and started their operations in
Kolkata. Those banks were called as the Credit Lyonnais. After that one bank which finally
became the first bank fully owned by India and no other foreign players The Allahabad Bank
and it happened in the year of 1865. In the following years, Indian market expanded and there
were many banks established by the 1900s, and these banks were established in urban center
and each of those banks was shaped as the non-public possession type and these were totally
non-public banks. After that The Reserve Bank of India formally started to regulate all the
actions of these banks to maintain the smooth functioning of these banks in the year 1935.
After the independence banks of Republic of India were given full powers and were
additionally nationalized that resulted in having the more powers to the bank. The banks were
divided into two broader classes- Scheduled banks and Non-scheduled banks.
1.2 LIBERALIZATION
During early 1990s, the then Prime Minister of India and the then finance minister of India
jointly introduced a policy which was known as the liberalization and this policy helped in
abolishing the licensing system. This move of liberalization led to a quick growth in the
banking sector in India and many banks came into the market and also it led to the increase in
the Indian economy. Indian economy started growing very fast; reason being the contribution
of the banks of all sectors likes the government banks, private banks and the foreign banks.
The introduction of the foreign direct investment within the Indian industry was the major
boost to the economy which was possible only through liberalization, where the foreign
banks got authority to take a position within the Indian banks and have the choice rights and
it had a really smart impact within the Indian economy. The new banking policy changed the
sector of banking drastically and also the bankers had a different mindset till now and it
changed with the help of the introduction of these policies.
PRESIDENCY COLLEGE Page 1

1.3 RBI AS A REGULATORY BODY
Reserve bank of India was established with a share capital of rupees five crores in 1935. The
recommendation for the institution of the bank was given by Hilton Young Commission.
During the beginning period of the bank the total amount of the share capital was divided into
small amount of shares and each share was having a face value of ₹100 each and were fully
owned by the private shareholders. The government of India was having the shares which
were having the nominal value of ₹220,000. In the year of 1949 the Reserve bank of India
was finally nationalized and all other banks had to start working under the rules framed by
the RBI.
1.4 MUTUAL FUNDS:
Mutual Funds are investment funds which attract investments in different financial
instruments with the objective of reducing risks and maximizing the returns for distributing to
the members. A Mutual Fund is a corporation’s interest to realize the deposits offered by the
investors and pay back profits on them after taking some administration fees. Mutual Funds
provide opportunities for lower income groups to invest in financial assets without any
difficulty. They mainly cater the individual investors who cannot manage portfolios that
provide income, growth and diversification opportunities.
Low risks will yield low returns and vice-versa. In recent trends of the market the retail
investors have lost their chances to invest in high return securities. On the other side people
started opting for portfolios where the stocking companies invest money on behalf of
investors and they can invest in different companies.
The primary benefit of mutual fund is its diversification. When the investor has many
benefits he can invest in the mutual funds and get great opportunities in the fund schemes that
provide good economies of scale. On the other hand there are negative aspects as well, that is
they have to pay more charges in the name of fees that may lead to denial of investments in
mutual funds.

1.5 CONCEPT:
Mutual fund are institutions/trusts which get money from the investors and then the same
amount of money is invested in the diversified instruments and those instruments are
financial instruments, where the main objective is to be away from high risks and to gain
more returns.
The major role of mutual fund is to offer the investors; even if the investors are having fewer
amounts they can invest. The most important need of this investment plan is to provide
opportunities to small investors where they can achieve growth and have regular income on
the investments and also can liquidate his assets at any time. The important thing is that
investors are getting diversification of the investment through mutual fund investment.
1.6 WHY TO CHOOSE MUTUAL FUNDS:
There are various categories of investments, among those categories there is one investment
called risk returns investment that usually happens when there is a correlation between threats
and gains. If the investor is ready to get high returns on investment then he has to go for the
high risk option for his investment because it is said that where there is a high risk, the
returns will also be high.
For example; if the investors are willing to deposit their money in the bank deposits, there has
to be a medium type of returns and also there will be low risk. But for the investor there are
many other opportunities where he can invest, he can invest in the capital tools and goods and
also in the bonds that give more returns on investment. If we compare both, the better option
for investment is the mutual fund because the returns are high and the risk is comparatively
less. That is why investors choose mutual funds as prior investment.
This is the reason why investors should choose mutual funds because the pooled funds are
not only invested in the debts but it is also invested in the stock companies where both the
institutions as well as the investors expect the high returns on the investment. It depends on
the corporation where they are putting the money in, whether there is low or high risk. If
there is high risk then proportionally the investors will receive high returns on their
investment. If there is low risk then the investors cannot expect high returns on the
investment.

1.7 ADVANTAGES OF MUTUAL FUNDS:
PORTFOLIO DIVERSENESS:
Mutual fund provides a platform for the investors having either less or huge amount, they can
enjoy the diverseness of the portfolio where they can invest in different securities and they
also can have earn good benefits.
LOW RISK:
Mutual funds help the investor to invest in multiple securities which lowers the risk as
compared to investing in a single security which can involve a lot of risk. As mutual funds
invest in more than one security the risk of investing in high risk securities gets compensated.
LESS COST OF TRANSACTION:
The company pays lesser amount of transaction that is made because of the economies of
scale and they have huge benefits on their investments. As compared to other schemes mutual
fund pays less amount of money on transactions and the mutual funds companies have to pay
fewer expenses.
LIQUIDATION:
The benefit for the investor in investing in mutual funds is that sometimes he cannot sell off
the shares very fast and very quickly when invested in separate securities but in the
mechanism of mutual funds the investor has more liquidation.
FLEXIBILITY:
Mutual funds are the most flexible type of investments available. There is a choice for the
investors to change their schemes from one to another. For example, investor can shift from
debt scheme to an equity scheme. Mostly in open ended schemes the investor can pay the
regular installments and can withdraw at regular periods so that it will be easy for them to
withdraw and even pay the investment installments.

1.8 DISADVANTAGES OF MUTUAL FUNDS:
COST INCURRED IN THE FUNDS CANNOT BE CONTROLLED BY INVESTORS:
In mutual funds the investors have to pay distribution expenses and charges related to the
investment. The investors have to pay these charges as per their value of the investment
according to whatever schemes they have taken. In this type of fund the investors have to pay
some charges where they can have the security of having the mutual fund scheme and after
paying the charges then the investors investment will be clear and away from any fraud and
even the investor will be updated about the scheme which he has taken.
NO PERSONALIZED PORTFOLIO:
The fund manager takes the decisions about the portfolio securities where the funds can be
invested in and not the investors. Investor doesn’t have rights to interrupt the fund manager
while the fund manager is going to take any prompt decision or any proper action towards the
fund schemes. The investors might feel demotivated about the investment plan they have
opted for but they can’t interfere in making decisions.
VERY COMPLEX TO SELECT THE BEST:
In mutual funds it is very complex to select the best scheme which would give higher returns.
The investors think from many perspectives because every investor has a different mindset.
Where one investor takes a scheme as per the budget and others are not worried about the
budget, they may look at the return on investment and the associated risk.
1.9 CATEGORIES OF MUTUAL FUNDS:
A. BY STRUCTURE:
In this type of mutual fund there are three types of fund schemes that are discussed below:
1. OPEN ENDED FUNDS:
Mutual funds in which there are no restrictions on the value of the shares when the funds can
be issued are known as open ended funds. Most of the investors are inclined towards open

ended schemes as it provides convenience and the flexibility to the investors and it is very
easy to invest in the open fund. It is a fund that issues huge amount of shares and bonds.
An open fund scheme provides the best platform to the investors where there are no
restrictions so that they can pool the money into diversified areas or portfolio and investors
can buy the managed portfolio. To invest in the open fund scheme the investors doesn’t need
the lot of money to enter in the field of open fund, the mutual fund institutions are making it
very easy for the investors to access and to invest in the fund.
2. CLOSE ENDED FUNDS:
This is the second scheme that comes under the structure model where the funds are collected
only once then the pooling of the money is done. This means that investors have to invest
once and then they have to wait for other offers after certain period of time. This scheme has
a maturity period of 3 to 15 years. The reserve will be opened for the specific period of time.
In this scheme there is initial public offer and that time the investors can come and put the
money in the particular scheme. After investing the money then the investor will be able or to
the investor has the authority to buy or even he can sell the units whichever they have
purchased, and all those units should be listed in the stock market.
All the close funds are listed in the stock exchange and it all will be sold and bought from the
same particular stock exchange.
B. BY NATURE:
EQUITY FUND:
This is the type of funds where investors can spend most of their securities that they are
holding and these are the funds where the schemes will be different from one scheme from
another and the fund Manager has their own outlook on the new stocks. There is sub
classification of the equity funds and that are actually based on the investment objectives, and
these are as follows:
 There are diversification in this type of equity fund

 Moderate capitalization funds
 There is a specification in some sector funds
 Tax saving funds are also there

Equity funds are meant for a longer period and there will be the ratio between the risk and the
return on the investment, because wherever the risk will be more as the same they will get the
returns on their investments. These investments should be considered for a minimum of 3-5
years of time.
FUNDS THAT ARE GILT:
GILT is the collection of securities dispensed by the Government. These types of securities
are called Indian government debt papers. These are no threat funds. They are away from the
risks and these funds are associated with the interest. These schemes are much safer than the
other schemes because these funds are backed by the Government of India.
EARNINGS FUNDS:
Investors have many options while choosing the best scheme for them and that time they
have to see the scheme in two perspectives, how much risk is involved in this particular
scheme and how much they can benefit on the investment. But they have other options also
like investing the large part of the investment in debt instruments where they can buy the
bonds, securities that are issued by the Government, and corporate debentures.
BALANCED FUNDS:
Balanced fund is the combination of both equity and debt funds. The investors are investing
in both the securities as well as in equities, which have the predefined financial objectives.
The main purpose of these schemes is to give best out of the both domestic as well
international trade. There are two domains in this scheme: equity and debt, where equity
provides the growth to the investors on their investments and the debt provides benefit to the
investor in the form of stability in their returns. In this type of scheme the investors put more
efforts to spread the risk and to put that risk into diverse investments.
BY INVESTMENT STRUCTURE:
GROWING SCHEMES:
The main benefit of this scheme is that it provides the investors to increase their capital and
to grow the capital from moderate to long term. These are the schemes which are mostly
investing a major part of the investment in the equities so that it will have a great liquidity,

and they should be willing to bear the risk in order to obtain the financial objectives so that it
will have the appreciation for the capital.
PAY SCHEMES:
This scheme is commonly known as debt instrument scheme. The key element of this scheme
is to provide investors something better and in regular intervals. This scheme provides regular
income to the investors and it also allows the investors to have fixed and unchanging income.
This scheme mostly finance in the areas of fixed income that can be bonds, debentures etc.
There is a limit for the appreciation of the capital.
CASH MARKET SCHEMES:
This scheme provides better aim to the investors where they have better liquidity to their
units and the investors can preserve their capital so that they achieve growth and capital
appreciation.
These schemes are more preferable and these schemes mostly invest in the short term funds
and instruments so that the investor’s trust will be on the safer side because dealing with the
short term investments is easy and safe. All the short term instruments can be transformed
into the cash with ease and the investor has to think before he can take the decision about
which scheme he is choosing.
OTHER SCHEMES:
TAX SAVING SCHEME:
Tax saving scheme is basically a scheme where the investors get tax benefit. Investor can
make some profits out of it and the funds will be safe from the defaults or any other risks.
The investors get tax rebates where all the laws and the rules should be regulated and
prescribed from time to time. There are some sections and subsections where some of the
savings are linked to the ELSS.
1.10. RECENT TRENDS IN THE MUTUAL FUND INVESTMENT:

There are several trends in the mutual fund investment. Mutual and ETF`s funds are majorly
known for the investment sentiments where the individual investors can invest their money
and the trusts can pool the same money into different institutions so that the investors can get
the revenues and they can have a regular income. In mutual funds and ETF`s the investor is
getting a good benefit where they can the diversification for the investments.
1. INVESTING MORE IN GOLD:
Investors tend to invest in gold rather than in mutual funds because it acts as a safe and secure
investment. The investors always look for gains and where the risk will be less the investor
can invest in the same, as the prices of gold can go up within days, it helps in the high
growth.
2. LISTED FUNDS ARE GROWING AND HAVE GOOD POPULARITY:
Sometimes these funds grow very rapidly and this trend was continued till 2016. Investor can
continue in the ultra-schemes which are very low cost schemes and come under the indexing.
3. INVESTORS CAN SHIFT FROM LESS TO HIGH YIELDS:
Investors can yield high returns on their investments so those who are having the less return
schemes are shifting to high yield schemes. This provides an investor a better option to
change from one scheme to another scheme.
This is the trend where the trusts and individual investor can have bad sign problems and
there are some uncertainties where the mutual fund sector has been riddled.
4. INCOMES THAT ARE SAFE AND SECURE FOR THE INVESTORS:
Likewise the investors have shifted to invest in the gold and some of the Government
securities. In the year 2016 the investors added some holdings in taxable and some in the
bonds. In the year 2016, the very first two months of the year the investors have added more
value to some fixed incomes and the amount was around $16 billion.

1.11 RELIANCE MUTUAL FUND
Reliance Mutual Fund (RMF) started out as a consortium in 1986 below Indian Trusts Act
1882. RMF is subsidized with the aid of Reliance Capital Ltd. It was registered as Reliance
Capital Mutual Fund on June 30, 1995 which again changed on March 11, 2004. Reliance
Mutual Fund was shaped to launch diverse schemes under which units are issued to people
for contributing to the diligent marketplace and to help buyers to spend money on diverse
securities.
Reliance Mutual Fund schemes are controlled by way of Reliance Capital Asset Management
Limited, a subsidiary of Reliance Capital Limited, which holds 93.37% of paid up budget of
RCAM, the rest is held by using minority shareholders.
THE MAIN OBJECTIVES OF THE TRUST:

 To perform the action of a Mutual Fund as permitted via law and articulate and expand
diverse schemes of savings and investments for citizens in India and foreign places and
additionally shield liquidity of investments for the Unit holders;
 To provide funds to help the Unit holders earn better returns on their savings and
 To take such steps as may be necessary from time to time to realize the
effects without any limitation.

1.12. UNIT TRUST OF INDIA MUTUAL FUND
Unit Trust of India was created by the UTI act passed in the Indian parliament in 1963. For
more than twenty years it remained the only choice for investment in capital markets in India.
ITI maintained its apex position till 2001.
UTI Mutual Fund was started as a SEBI registered mutual fund on 1st February 2003. UTI
Mutual Fund is one of the biggest mutual funds in India with about 10 million accounts under
230 schemes as on 30th September 2017. Its network is spread all over the country with over
48000 certified financial advisors and 150 financial centers.

1.13 HDFC MUTUAL FUNDS
HDFC is a leading bank in India’s banking context and its mutual funds are also one of the
largest in India and it has been a long time when the HDFC bank has started mutual fund
schemes and currently now it has shown a considerate growth in the country. It is currently
one of the most known mutual funds in the market.
HDFC Bank's mission is to be a best Indian Bank. The objective is to form strong customer
franchises across diverse businesses so as to be the preferred provider of banking services for
target retail and wholesale customer segments, and to achieve high growth in profitability,
consistent with the bank's risk desire. The bank is committed to sustain the highest level of
ethical standards, professional integrity, corporate governance and regulatory compliance.
In 2017 the bank networks has been increased and the bank has got other distribution
webbing, till 30th June of 2017 the bank had around 4800 branches and 12500 (ATM`S) in
different cities and in various towns. The bank has also positioned around four lack fifty
thousand “point of sale” terminals .In the year 2017, the bank has provided two lakh thirty
five thousand seven hundred debits cards to the customers and it has also issued around
85000 credit cards. The bank has got a good strategy to achieve great excellence in the field
of banking and the bank is doing well at it because it has some four basic fundamentals to
sustain in the field of banking and always being on the top in private sector banking and those
fundamentals are:

1. Majorly focusing on customers,

2. Achieving excellence in operations,
3. Leading in the field of financial products,
4. And the people who are connected with the bank.
The bank believes that the success comes from the only two things, the standard of the people
and the efforts that the people are putting to achieve excellence in the banking sector. HDFC
is performing some continuous things in the people hiring and creating a relationship to them
so that they will get motivated towards the company and the company will also retain the
people those who are putting great efforts towards the company.

CHAPTER 2
BACKGROUND AND OBJECTIVES

2.1 NEED OF THE STUDY:

The purpose of this analytical study is to know about attractiveness of mutual fund schemes
in equity growth based category and their functioning. The study will be based on equity
growth based schemes of noticeable mutual funds in India as well as returns associated.
2.2 STATEMENT OF THE PROBLEM:
Indian financial system has been experiencing huge effect of globalization i.e. severe interest
rate cut, unstable political system, fall in exchange rates etc. which have depressed the
common investor`s opinion in selecting various investment portfolios and thus trying to look
at mutual funds as good investment opportunity. Looking at the situation, it is quite
promising to analyze how different Mutual Funds are able to attract the deposits by
introducing various schemes and how they protect the interest of the investors.
2.3 SCOPE OF THE STUDY:

The study is limited to ascertain the aspects of equity growth based mutual funds associated
with Reliance, UTI and HDFC.
2.4 BACKGROUND OF STUDY
The main aim of this research paper was to equate the performance of financial funds and
funds that are traditional in USA.
There are almost 130 green funds that were identified by US SIF to be compared and that was
under the average of all funds in the category of morning star. The performance will be
quantified and can be analyzed on the basis of returns and ratios of expenses. The data has
been pertained from last 5 to 15 years.

The results have been published then that green funds have generated very low returns on the
investments and the risks are very familiar to funds that are traditional in morning star
category.
The major purpose of this paper was to implement the best practice among all the practices
related to fund directory as prescribed by Investment Company Institute (ICI) in the year
1999. In the same year, they have followed the series where they have found some
malpractices related to the financial and fund industry.
The main aim of this study was to study the consistency that has been implemented in the
best practices among the fund industry. This clearly depicts that funds have the safety to
procure and to protect the investor from the risks that are involved in the investment and it
also diverted the management of the fund schemes from the investors.
The reason for this text is to depict the procedure for framing and registering another
investment organization. This text talks concerning the look, assess and body complications
underneath Delaware law, the United States tax income Code of 1986, this text edits and
breaks down tips and controls of the Securities and Exchange Commission ("SEC") material
for shaping and recruiting new shared supports and ever-changing over already existing
speculative stock investments into common finances under the 1940 Act and Advisers Act.

Development within the common store business among developing markets has been nice.
However, shared store examine in developing markets barely exists. This paper aims to fill
this space. Specifically, the paper reviews the relative significance of essential elements
within the alternative of common subsidized fund counsels in developing markets. Our
review centers around Malaya where the common business began within the Fifties
nevertheless picked up significance within the Eighties with the inspiration of associate
degree administration started program. The after effects of our study purpose to a few very
important parts that rule the choice of shared assets.
The vulnerability concerning whether investments in riskier and fewer effective markets
modify supervisors to 'beat the market' remains an inquiry and to answer that square measure
is needed. In like manner, the explanation for this section is to provide new bits of data on
arrangement of the U.S., European and rising Market ('EM') and notably investigates two
principle issues: alpha age and therefore the impact of the assets' qualities on their risk-
balanced performance.

The main importance of this paper was to conduct the evaluation of some standards that will
support the models so that we can judge the performance of those mutual funds and it will
help to council some of the most efficient approaches.
There is a conditional model for car hart that has been published in the year 1997 and it has
been found that it should become accepted by all the contexts so that it will get accepted.
2.5 OBJECTIVES:
 To study equity growth based mutual fund schemes of three mutual fund companies.
 To rank the three companies based on their performance.
 To analyze the current trends of Mutual Fund investment.
 To make recommendations to investors to help them in their investment in mutual funds.

CHAPTER 3
TRAINING METHODS AND ACTIVITIES
3.1 RESEARCH DESIGN
DESCRIPTIVE RESEARCH: Descriptive research is a research method that outlines the

characteristics of the population that is being studied. This methodology focuses more on the
“what” of the research subject rather than the “why” of the research subject.
3.2 SOURCES/TOOLS OF DATA:
SECONDARY DATA: Secondary data is that data which are already gathering by somebody.
This secondary data have been collected for some purpose and then only the data is available
for this study. There are some sources where from the data was collected and the sources are
Magazines, Journals, Books, Newspapers, Websites, etc. The secondary data is gathered from
Newspapers, Articles, Journals, Internet and Magazine.
3.3 SAMPLING PLAN/SELECTION OF MUTUAL FUND FOR THE

STUDY:
Out of all types of mutual fund schemes, for this study equity growth based schemes of three
select mutual fund companies were selected.
3.4 DATA ANALYSIS:
The data collected from various sources is tabulated and represented on the basis of growth
parameters and period wise. Simple tabulation is used to analyze the data. Wherever possible,
cross tabulation is done. Statistical tools of averages mean and percentages are used. For
graphical display, charts and graphs are used.
3.5 ACTIVITIES
 Referred various books and journals for collecting literature review.

 Referred various newspapers to know about the recent trends in the mutual fund industry.
 Visited college library for referring books and journals.
 Met the college guide at regular intervals for discussing the chapters of study.
 Referred various websites for collection of data.

CHAPTER 4
LEARNING OUTCOMES
4.1 LEARNING OUTCOMES
 To formulate objectives of research.

 To search and understand the literature review and formulate the research gap.
 To understand and interpret secondary data.
 To tabulate the data in MS Excel.
 To display the data in the form of tables and graphs.
 To analyze the research data.
 To come up with findings, conclusion and recommendations.

CHAPTER 5
DATA ANALYSIS AND INTERPRETATION

5.1 HDFC Equity Mutual Funds
TABLE 5.1.1
TABLE SHOWING INCREASE/DECREASE IN PRICES OF EQUITY MUTUAL

PARTICULARS OPEN PRICE HIGH PRICE LOW PRICE LAST PRICE
2013-14 2800 2820 2785 2799.74
Analysis: From the above table it can be analyzed that in the year 2013-14 the opening price
is ₹2800, high price is ₹2820, low price is ₹2785 and the last price is ₹2799.74
GRAPH 5.1.1
GRAPH SHOWING INCREASE/DECREASE IN PRICES OF EQUITY MUTUAL

FUNDS IN THE YEAR 2013-14
Interpretation: From the above graph it is interpreted that the prices of equity mutual funds
in the year 2013-14 is decreased by 0.009% which is negligible, so the investors will not get
any returns in the given year.

TABLE 5.1.2

OPEN HIGH
PARTICULARS LOW PRICE LAST PRICE
PRICE PRICE
2014-15 2509 2509 2470.02 2480.3
Analysis: From the above table it can be analyzed that in the year opening price is ₹2509,
high price is ₹2509, low price is₹2470.02 and the high price is ₹2480.3
GRAPH 5.1.2

Interpretation: From the above graph it can be interpreted that the prices of equity mutual
funds in the year 2014-14 have dropped from ₹2509 to ₹2480.3, therefor the investors will
get negative returns in this particular year.

TABLE 5.1.3

OPEN HIGH LOW LAST

PARTICULARS
PRICE PRICE PRICE PRICE
2015-16 2640 2650 2612 2620
Analysis: From the above table it can be analyzed that in the year 2015-16 the open price is
₹2640, high price is ₹2650, low price is ₹2612 and the high price is ₹2620
GRAPH 5.1.3

funds in the year 2015-16 has got down slightly which resulted in negative returns for the
investors in that particular year.

TABLE 5.1.4

OPEN HIGH LOW LAST

PARTICULARS
PRICE PRICE PRICE PRICE
2016-17 2660 2669.99 2650 2655
₹2660, high price is ₹2669.99, low price is ₹2650 and the last price is ₹2655
GRAPH 5.1.4

funds in the year 2016-17 have gone up by ₹5 per unit, so the investors will get better returns
in the said year.

TABLE 5.1.5

PARTICULARS OPEN PRICE HIGH PRICE LOW PRICE LAST PRICE
2017-18 2845 2845 2840 2840
₹2845, high price is ₹2845, low price is ₹2840 and the last price is ₹2840
GRAPH 5.1.5

funds in the year 2017-18 have decreased and thus resulted in negative returns to the
investors.

5.2 Reliance Equity Mutual Funds
TABLE 5.2.1

Particulars Open price High price Low price Last price
2013-14 2470 2470 2433.01 2433.01
Analysis: From the above graph it can be analyzed that in the year 2013-14 the open price is
₹2470, high price is ₹2470, low price is ₹2433.01 and the last price is ₹ 2433.01
GRAPH 5.2.1

funds in the year 2013-14 dropped down by 1.50% which indicates the negative returns for
the investors in the said year.

TABLE 5.2.2

2014-15 2470 2470 2433.01 2433.01
₹2470, high price is ₹2470, low price is ₹2433.01 and the last price is ₹ 2433.01
GRAPH 5.2.2

funds in the year 2014-15 got down by ₹ 36.99 per unit. So the investors will get negative
returns in this particular year.

TABLE 5.2.3

2015-16 2663.99 2663.99 2663.99 2663.99
₹2663.99, high price is ₹2663.99, low price is ₹2663.9 and the last price is ₹2663.99
GRAPH 5.2.3

funds in the year 2015-16 did not increase or decrease and were stable throughout the year.
So there was no profit or loss for the investors in the particular year.

TABLE 5.2.4

2016-17 2771.77 2777.34 2716.14 2713.5
₹2771.77, high price is ₹2777.34, low price is ₹2716.14 and the last price is ₹2713.5
GRAPH 5.2.4

Interpretation: From the above graph it can be interpreted that the price of equity mutual
funds in the year 2016-17 have shown a gradual fall from ₹2771.77 to ₹2713.5 leading to
negative returns for the investors in that year.

TABLE 5.2.5

2017-18 2798 2800 2798 2800
₹2798, open price is ₹2800, low price is ₹2798 and the last price is ₹2800
GRAPH 5.2.5

funds in the year 2017-18 have increased by ₹2 per unit. So the investors will enjoy positive
returns for that year.

5.3 UTI Equity Mutual Funds
TABLE 5.3.1

2013-14 2733 2769.9 2725.01 2766.45
₹2733, high price is ₹2769.9 low price is ₹2725.01 and the last price is ₹2766.45
GRAPH 5.3.1

funds in the year 2013-14 has shown gradual increase and thus the investors will get positive
returns in that year.

TABLE 5.3.2

2014-15 2472 2480 2455 2470.39
₹2472, high price is ₹2480, low price is ₹2470.39
GRAPH 5.3.2

funds in the year 2014-15 has come down leading to negative returns to the investors in this
year.

TABLE 5.3.3

2015-16 2620 2640 2606.6 2620
Analysis: From the above table it can be analyzed the in the year 2015-16 the open price is
₹2620, high price is ₹2640, low price is ₹2606.6
GRAPH 5.3.3

funds in the year 2015-16 have not changed. So there will be no effect on the returns of the
investors in the given year.

TABLE 5.3.4

2016-17 2630 2638 2616.55 2621.93
₹2630, ₹2638, ₹2616.55 and the last price is ₹2621.93
GRAPH 5.3.4

funds in the year 2016-17 have decreased by 0.30% per unit which leads to negative returns
to the investors in that particular year.

TABLE 5.3.5

2017-18 2823.01 2835 2823 2833.69
₹2823.01, high price is ₹2835, low price is ₹2823 and the last price is ₹2833.69
GRAPH 5.3.5

funds in the year 2017-18 have increased by 0.37% per unit. So, the investors will enjoy
positive returns in this year.

5.4 COMPARISON BETWEEN THREE SELECTED MUTUAL FUNDS
TABLE 5.4.1
TABLE SHOWING THE PERFORMANCE OF SELECTED MUTUAL FUNDS ON

THE BASIS OF GAIN/LOSS PERCENTAGE FOR THE YEAR 2013-14
HDFC Reliance UTI

Particulars
Gain/Loss (%) Gain/Loss (%) Gain/Loss (%)
2013-14 1.44 2.19 2.43
Analysis: From the above table it can be analyzed that in the year 2013-14 the gain/loss
percentage for HDFC, Reliance and UTI was 1.44%, 2.19% and 2.43% respectively.
GRAPH 5.4.1
GRAPH SHOWING THE PERFORMANCE OF SELECTED MUTUAL FUNDS ON

gain/loss %
3
2.5
2
1.5
1
0.5
0
hdfc reliance UTI
Interpretation: From the above graph it can be interpreted that UTI had performed
comparatively better than other two on the basis of gain/loss percentage in the year 2013-14

TABLE 5.4.2

HDFC Reliance UTI

Particulars
2014-15 14.5 15.08 14.71
percentage of HDFC, Reliance and UTI is 14.5%, 15.08% and 14.71% respectively.
GRAPH 5.4.2

15.1
15
14.9
14.8
14.7
14.6
14.5
14.4
14.3
14.2
hdfc reliance UTI
Interpretation: From the above graph it can be interpreted that in the year 2014-15 Reliance
had performed better as compared to other two on the basis of gain/loss percentage.

TABLE 5.4.3

HDFC Reliance UTI

Particulars
2015-16 8.4 5.11 8.16
Analysis: From the above table it can be analyzed that the gain/loss percentage for HDFC,
Reliance and UTI in the year 2015-16 is 8.4%, 5.11% and 8.16% respectively.
GRAPH 5.4.3

gain/loss %
10
0
hdfc reliance UTI
Interpretation: From the above graph it can be interpreted that in the year 2015-16 HDFC
has performed better as compared to other two on the basis of gain/loss percentage.

TABLE 5.4.4

HDFC Reliance UTI

Particulars
2016-17 6.97 3.08 8.08
percentage for HDFC, Reliance and UTI is 6.97%, 3.08% and 8.08% respectively.
GRAPH 5.4.4

gain/loss %
9
8
7
6
5
4
3
2
1
0
hdfc reliance UTI
Interpretation: From the above graph it can be interpreted that in the year 2016-17 UTI had
performed comparatively better than the other two on the basis gain/loss percentage.

TABLE 5.4.5
TABLE SHOWING THE COMPARISON BETWEEN THREE SELECTED MUTUAL

FUND COMPANIES ON THE BASIS OF GAIN/LOSS PERCENTAGE
HDFC Gain/Loss UTI Gain/Loss

Particulars Reliance Gain/Loss (%)
(%) (%)
2013-14 1.44 2.19 2.43
2014-15 14.5 15.08 14.71
2015-16 8.4 5.11 8.16
2016-17 6.97 3.08 8.08
Analysis: From the above table it is analyzed that
 HDFC gain/loss percentage

For the year 2013-14: 1.44%
For the year 2014-15: 14.5%
For the year 2015-16: 8.4%
For the year 2016-17: 6.97%
 Reliance gain/loss percentage
For the year 2013-14: 2.19%
For the year 2014-15: 15.08%
For the year 2015-16: 5.11%
For the year 2016-17: 3.08%
 UTI gain/loss percentage
For the year 2013-14: 2.43%
For the year 2014-15: 14.71%
For the year 2015-16: 8.16
For the year 2016-17: 8.08

GRAPH 5.4.5
GRAPH SHOWING THE TREND ANALYSIS COMPARISON BETWEEN THREE

SELECTED MUTUAL FUND COMPANIES ON THE BASIS OF GAIN/LOSS
PERCENTAGE
16
14
12
10
HDFC % gain/loss
8
Reliance % gain/loss
6 UTI % gain/loss
0
2013-14 2014-15 2015-16 2016-17
Interpretation: From the above graph it can be interpreted that among the selected three
mutual fund companies UTI is performing the best in the last 4 years and providing the best
returns on the basis of gain/loss percentage.

CHAPTER 6
KEY FINDINGS AND CONCLUSION

6.1 FINDINGS
The findings of the study are as follows:
 In the year 2013-14 UTI mutual funds performed better than the other two.
 In the year 2014-15 Reliance mutual funds performed better than the other two.
 In the year 2015-16 HDFC mutual funds performed better than the other two.
 In the year 2016-17 UTI mutual funds performed better than the other two.
 The trend analysis showed that UTI equity based mutual funds have performed better
than the other two in the past 5 years followed by HDFC and Reliance.
 UTI equity based mutual funds gave better returns to their investors in past 5 years
 UTI equity based mutual funds had better NAV’s as compared to that of HDFC and
Reliance.
6.2 CONCLUSION
Mutual funds now maybe most suitable investment opportunity for most buyers. As
economic markets grow to be extra sophisticated and problematic, buyers need an economic
middleman who provides the specified talents and legit evaluation on positive investing,
because the investor always try to maximize the returns and slash the risk. Mutual fund
satisfies these requisites by offering attractive returns with low priced risks. The fund
enterprise has already overtaken the banking enterprise, more funds being under mutual fund
path than deposited with banks. With the emergence of tough competitors in this sector,
mutual funds are launching a variety of schemes which caters to the requirement of the
particular category of investors. Risk takers for getting worthy appreciation should invest in
development, equity schemes. Investors who're in need of regular sales will have to invest in
income schemes.
From this study it is evident that in the last five years UTI equity based mutual funds have
shown better growth as compared to Reliance equity based mutual funds and HDFC equity
based mutual funds according to yearly growth and the aggregate profit/loss percentages.
HDFC equity based mutual fund has shown medium growth among the three selected mutual
funds and Reliance equity based mutual funds have shown minimum growth.

CHAPTER 7
RECOMMENDATIONS
7.1 RECOMMENDATIONS
Considering the findings of my research I would like to indicate the following suggestions:
 UTI equity based mutual fund is doing well in the market as compared to HDFC and
Reliance mutual funds.
 People should invest more in UTI equity based mutual funds in order to get better returns.
 Reliance mutual funds should provide better portfolios to their customers as it is having
the minimum growth among the three selected equity based mutual funds.
 People can invest in HDFC equity based mutual funds as it is also performing well
 As HDFC is doing moderately they should come up with various other portfolios to come
at par with UTI.
 The brokers and fund managers should encourage investors to invest in UTI equity based
mutual funds.

SUPPORTING DOCUMENTS
Centre for Management studies, Presidency College, Bangalore
MBA Mini Project- III semester Progress Report 1
Sl. No Particulars Details

1 Name of the Student Faheem Firdous
2 Registration Number 17YACMD054
3 Name of the College Guide MR. RAVINDRA KULKARNI
4 Title of the Project A Study of Performance of Three Selected Mutual
Fund Schemes of Equity Growth in the last Five
Years.
5 Progress report : A brief -Meetings with internal Guide:
note reflecting ,Number of 5 times for selection of topic and further guidance
meeting with Guides, related to the commencement of the project.
places visited, libraries -Places visited:
visited, books referred, Presidency College library.
meeting with persons, - Books referred:
activities taken up, Indian Banking by S.Natarajan and
preparations done for P.Parameswaram.
collection and analysis of Mutual funds by Eric Tyson.
data etc.,) - Websites referred:
www.emaraldinsights.com
www.mutualfunds.com
-Activities taken up for collection and analysis of
data:
Review of Literature is in progress and based on the
guidelines the chapter schemes will be implemented.
Date:
Signature of the Candidate Signature of College Guide

Centre for Management studies, Presidency College, Bangalore
MBA Mini Project- III semester Progress Report 2
Sl. No Particulars Details

1 Name of the Student Faheem Firdous
2 Registration Number 17YACMD054
3 Name of the College Guide MR. RAVINDRA KULKARNI
4 Title of the Project A Study of Performance of Three Selected Mutual
Fund Schemes of Equity Growth in the last Five
Years.
5 Progress report : A brief -Meetings with internal Guide:
note reflecting ,Number of 3 times for data collection schemes and further
meeting with Guides, places guidance related to the commencement of the project.
visited, libraries visited, -Places visited:
books referred, meeting Presidency College library.
with persons, activities - Books referred:
taken up, preparations done Indian Banking by S.Natarajan and P.Parameswaram.
for collection and analysis - Websites referred:
of data etc.,) www.hdfcbank.com
www.reliancemutual.com
www.utimf.com
www.moneycontrol.com
-Activities taken up for collection and analysis of
data:
Data analysis and interpretation is in progress and
based on the guidelines the chapter schemes will be
implemented.
Date:
Signature of the Candidate Signature of College Guide

REFERENCES
BOOKS REFEREED:
 S.Natarajan and P.Parameswaram, Indian Banking,2104

 Mutual Fund Industry , Lee Gremillion,
 Mutual Funds by Eric Tyson.
MAGAZINES:
 HDFC Mutual Funds

 Mutual Fund Insight
JOURNALS:
 Indian Journal of Finance.
NEWSPAPER:
 Financial Times
 International Business Times
WEBSITES:
 www.hdfcbank.com
 www.reliancemutual.com
 www.utimf.com
 www.emeraldshigh.com
 www.moneycontrol.com

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A STUDY OF PERFORMANCE OF THREE SELECTED MUTUAL FUND SCHEMES OF EQUITY

GROWTH IN THE LAST FIVE YEARS

A STUDY OF PERFORMANCE OF THREE SELECTED MUTUAL

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

Mr. Ravindra Kulkarni

DECLARATION BY THE STUDENT

I, hereby, declare that “A STUDY OF PERFORMANCE OF THREE SELECTED

Place: Bangalore Name : Faheem Firdous

Date: Registration Number: 17YACMD054

This is to certify that the project report, titled, “A STUDY OF PERFORMANCE OF

Prof. Ravindra Kulkarni

I would like to gratefully acknowledge BANGALORE UNIVERSITY for this opportunity,

STUDENT: Faheem Firdous

REGISTER NUMBER: 17YACMD054

1.1 INDUSTRY PROFILE 1

1.3 RBI AS AREGULATORY BODY 2

1.4 MUTUAL FUNDS 2

1.5 CONCEPT 2-3

1.6 WHY TO CHOSE MUTUAL FUNDS 3

1.7 ADVANTAGES OF MUTUAL FUNDS 4

1.8 DISADVANTAGES OF MUTUAL FUNDS 5

1.9 CATEGORIES OF MUTUAL FUNDS 5-8

1.10 RECENT TRENDS IN MUTUAL FUNDS 8-9

1.11 RELIANCE MUTUAL FUND 10

1.12 UTI MUTUAL FUND 11

1.13 HDFC MUTUAL FUND 12-13

2 BACKGROUND AND OBJECTIVES

2.1 NEED OF THE STUDY 14

2.2 STATEMENT OF THE PROBLEM 14

2.3 SCOPE OF THE STUDY 14

2.4 BACKGROUND OF THE STUDY 14-17

3 TRAINING METHODS AND ACTIVITIES

3.1 RESEARCH DESIGN 18

3.2 SOURCE/TOOLS OF DATA 18

SAMPLING PLAN/SELECTION OF MUTUAL FUNDS FOR

3.4 DATA ANALYSIS 18

4.1 LEARNING OUTCOMES 19

5 DATA ANALYSIS AN INTERPRETATION

5.1 HDFC EQUITY MUTUAL FUNDS 20-24

5.2 RELIANCE EQUITY MUTUAL FUNDS 25-29

5.3 UTI EQUITY MUTUAL FUNDS 30-34

COMPARISON BETWEEN THREE SELECTED MUTUAL

6 KEY FINDINGS AND CONCLUSION

SL. NO TABLE DESCRIPTION PAGE NO

INCREASE/DECREASE IN PRICES OF EQUITY MUTUAL

INCREASE/DECREASE IN PRICES OF EQUITY MUTUAL

INCREASE/DECREASE IN PRICES OF EQUITY MUTUAL

INCREASE/DECREASE IN PRICES OF EQUITY MUTUAL

INCREASE/DECREASE IN PRICES OF EQUITY MUTUAL

INCREASE/DECREASE IN PRICES OF EQUITY MUTUAL

INCREASE/DECREASE IN PRICES OF EQUITY MUTUAL

INCREASE/DECREASE IN PRICES OF EQUITY MUTUAL

INCREASE/DECREASE IN PRICES OF EQUITY MUTUAL

INCREASE/DECREASE IN PRICES OF EQUITY MUTUAL

INCREASE/DECREASE IN PRICES OF EQUITY MUTUAL

INCREASE/DECREASE IN PRICES OF EQUITY MUTUAL

INCREASE/DECREASE IN PRICES OF EQUITY MUTUAL

INCREASE/DECREASE IN PRICES OF EQUITY MUTUAL

INCREASE/DECREASE IN PRICES OF EQUITY MUTUAL

PERFORMANCE OF SELECTED MUTUAL FUNDS ON THE

PERFORMANCE OF SELECTED MUTUAL FUNDS ON THE