MUTUAL FUNDS - RESEARCH

PAPERS REVIEWS

Nihil Agrawal & Salil Aryan

19021141073 - 19021141097
 EFFECTIVENESS OF VALUE ADDED SERVICE IN
PUBLIC SECTOR BANKS - A FACTOR ANALYSIS
Public sector banks provide various value added services to the customers. The awareness
level of customers is increasing day by day. Their expectations are also increasing for choice
of choosing the product and services. The Public sector banks offering Value Added Services
like bill payments, transfer of money, enquiring account balances, buying and selling of
financial instruments such as securities, credit cards, mutual funds, ATM cum debit card,
insurance policy, demat accounts and so on. Creation of all those facilities involves very
huge investment. So it’s most important to increase the usage of Value Added Services
among the customers to improve the operational efficiency and get maximum benefit from
the investment made in these facilities.
After doing the factor analysis the researcher found that the selected 29 factors related to
customers’ satisfaction towards value added services offered by the public sector banks into
two major factors representing Tangible Value Added Services and Intangible Value Added
Services and noticed that customers’ satisfaction towards value added services has
increased for Tangible Value Added Services and also increased for Intangible Value Added
Services and these two factors are having significant impact on the overall customers
satisfaction towards value added services provided by the public sector banks in Erode
district.
[ CITATION MSU17 \l 16393 ]

The Impact of External Funds Flows on Forex

Reserves of India
FDI and FII play a key role in any country foreign exchange reserves and are essential for the
developing economies like India. Bi-variate Correlation is applied on the FDI, FII and Rupees
vs. Dollar rate and observed that Variables have strong positive correlation among them.
Regression analysis is implemented on Rupees vs. Dollar, FDI and FII it was observed that
exchange rate fluctuation has impact on FII and FDI. Granger causality test was applied on
FII, FDI and forex reserve and it was found that FII and FDI are having the impact on forex
reserves.
In the equity market investment comes from internal flow and external flows. Foreign
investments are influencing the Indian investments. Foreign investments are the integral
part of the equity investments and present study found that their decisions get influenced
by the exchange rate movements. The Indian investor should not only consider the
fundamental values of the company or the technical analysis but they should also
concentrate on FDI, FII and Exchange rate movements. Hence, the researcher thinks there is
further scope to do research in this field by considering various macro level factors which
influences the FDI and FII flows such as the commodity price movements, political stability,
and interest rate fluctuation.
[ CITATION AKo16 \l 16393 ]

Robust Benchmarking of Indian Mutual Funds-A

Partial Frontier Approach
Performance analysis of mutual funds is usually made on the basis of return-risk framework.
Traditionally, excess return (over risk-free rate) to risk ratios were used for the purpose
mutual fund evaluation. Subsequently, the application of non-parametric mathematical
programming techniques in the context of performance evaluation facilitated multi-criteria
decision making. However, the estimates of performance on the basis of conventional
programming techniques like DEA and FDH are affected by the presence of outliers in the
sample observations. The present, accordingly uses more robust benchmarking techniques
for evaluating the performance of sectorial mutual fund schemes based on observations for
the second half of 2010.
In India, the mutual fund industry has gained in terms of size and depth over the years in
response to the introduction of more competition and the institution of global best practices
in the matter of regulation/operation. Of late, sectoral funds are having growing popularity
in the Indian market in view of the superior returns provided by them relative to diversified
equity funds in a bullish market. Conventionally, the performance of mutual fund is
evaluated in the context of return-risk framework. Two partial frontier methods have been
used for the estimation of fund performance. The USP of both the techniques is that the
researcher can make a trade-off between sample coverage and robustness by choosing
appropriate model parameters. Indeed, this study shows that robust performance
evaluation is attained both in case of point and bootstrap estimates only considering 25% of
the sample observations.
[CITATION Ram15 \l 16393 ]

Risk-adjusted Performance Evaluation of Indian

Mutual Fund Schemes
This research paper evaluates the performance of mutual fund schemes in India using risk-
adjusted measures of performance evaluation, namely, Sharpe ratio and Treynor ratio, for a
sample of 100 Indian mutual fund schemes selected on the basis of availability of
consecutive data during the period 1st April 2000 to 31st March 2008. The findings suggest
that the overall performance of mutual fund schemes during the study period was mixed.
The results of Sharpe ratios of mutual fund schemes revealed that during the full study
period, Sharpe ratios of 52 per cent of schemes were better than the Sharpe ratios of their
benchmark indices. It was also found that 42 per cent of growth schemes, 40 per cent of tax
planning schemes, 75 per cent of income schemes and 91 per cent of balanced schemes,
respectively, had performed better than their respective indices in terms of Sharpe ratio.
During the full study period, 70 per cent of mutual fund schemes had higher Treynor ratios
than those of their respective indices. Analysis further revealed that in the full study period,
64 per cent of growth schemes, 60 per cent of tax planning schemes, 76 per cent of income
schemes and 100 per cent of balanced schemes, respectively, had better Treynor ratios than
the Treynor ratios of their benchmark indices.
On examining the performance of mutual fund schemes, the researcher finds out that
equity-oriented mutual fund schemes have done well during the bull phase in favourable
market conditions. However, most of them could not earn better returns for their investors
in comparison to their respective benchmark indices. The absence of performance
persistence signifies that past performance is in no way implicated for the future. Fund
managers did not seem to possess the ability to identify under or overpriced securities and
to forecast the market trend. The returns of equity-oriented schemes may further improve if
the managers of equity schemes improve portfolio management skills.
[ CITATION Kav15 \l 16393 ]

Comparative Study of Various Mutual Funds

Schemes in India
A comparative study of various mutual funds schemes in India is studied. Sharpe Index
Model is used to evaluate the performance of the most preferred chosen randomly the
public and private sector mutual funds schemes in India. Statistical tools are also used to
calculate some measures of interest of the different mutual funds schemes.
The core of this research provides the valuable information regarding the performance of
the different mutual funds undertaken. The application of the Sharpe index made it feasible
to give performance and then the ranking of these funds. This ranking make it easy for an
investor to choose the fund and scheme among the given and then decide his portfolio
accordingly.
It has seen enormous expansion in the size of mutual fund industry in India. Especially, the
private sector has shown galloping growth.
[ CITATION DKK10 \l 16393 ]
 Relationship Between The Performance And Size
Of The Balanced Mutual Funds In India
This paper is to examine the relationship between the performance and size of the balanced
mutual funds in India and with the help of suitable tools & techniques. Except the two
studies, there were no further studies to check-out whether there is any relationship
between the size of the funds and their performance. First study found that the size of the
fund affects the fund behavior and reported that funds suffer from diminishing returns to
scale and suggest that funds should alter their investment behavior as assets under
management increases. In the Indian context, second study did not find out any conclusive
evidence to support the viewpoint that the size of the fund affects the performance of
open-ended equity mutual funds
They found out that the size doesn’t significantly affect the performance of the few sizes of
balanced mutual funds and on overall basis. But in few cases (aspects) of the selected size of
Balanced Mutual Funds, size does significantly affect the performance like; fund size affects
the Return, Return / Risk, and Sharpe’s ratios of Small Sized Balanced Mutual Funds;
performance of Medium Sized Balanced Mutual Funds in opposite direction; and the risk of
Large Sized Balanced Mutual Funds.

[ CITATION Ume14 \l 16393 ]

A Study on the Performance of Large Cap Equity

Mutual Funds in India
Mutual funds are best investment avenues for a large number of investors in recent
days. Risk and return are the basic features of mutual fund. The present study evaluates and
compares the performance of large cap equity funds of four asset management companies
(L&T, DHFL Pramerica, HDFC and Principal Mutual Fund). The results of the study show that
L&T India Large Cap Equity Fund outperforms the benchmark index, i.e., NSE Nifty 50, in
terms of all measurement ratios. The performance of Principal Large Cap Fund and HDFC
Top 200 is moderate and they also outperform the benchmark index. However, DHFL
Pramerica Large Cap Equity Fund’s performance is very poor as compared to other selected
funds.

[ CITATION Pra17 \l 16393 ]

Problems and Prospects of Mutual Funds

in India
This study attempts to examine the factors responsible for this contradictory state of mutual
funds in India so as to throw light on its future prospects.
The Mutual Funds have their own set of problems regarding costs, services, regulations,
profitability, participation, financial instability and others, which have been causing big
concern to investors. The growing realisation on such issues is adversely affecting the
investors’ stake in mutual funds industry in India. But, fostering economic variables in the
country are giving faith for its vividness.

[ CITATION DrJ14 \l 16393 ]

A Study on the Performance of Large Cap Equity

Mutual Funds in India
Mutual funds are best investment avenues for a large number of investors in recent days.
Risk and return are the basic features of mutual fund. The present study evaluates and
compares the performance of large cap equity funds of four asset management companies
(L&T, DHFL Pramerica, HDFC and Principal Mutual Fund). The results of the study show that
L&T India Large Cap Equity Fund outperforms the benchmark index, i.e., NSE Nifty 50, in
terms of all measurement ratios. The performance of Principal Large Cap Fund and HDFC
Top 200 is moderate and they also outperform the benchmark index. However, DHFL
Pramerica Large Cap Equity Fund’s performance is very poor as compared to other selected
funds.
L&T India Large Cap Equity Fund outperforms the benchmark index and its performance is
also high as compared to other selected schemes during the study period. Subsequently, the
risk-adjusted performance of Principal large cap fund is better compared to the remaining
two schemes, while the performance of HDFC Top 200 and DHFL Pramercia Large Cap Equity
Funds is moderate. So, according to researcher, the investors of the selected schemes of
mutual fund are advised to revise their portfolio to include better performing funds in it and
achieve the investment objective.
[ CITATION Prag17 \l 16393 ]

A Study of Trend in Asset Allocation among Public

and Private Sector Sponsored Mutual Funds in
India and its Impact on the Performance of Open-
ended Equity Funds
This paper attempts to study the impact of asset allocation on the performance of the open-
ended equity funds of AMC’s under study. The present study aims to understand through
prudent examination, state of sector preference by top ranked AMC’s in the country. 5
AMCs have been selected for the study, viz., UTI and SBI from public sector sponsored funds
and Reliance, ICICI and HDFC from private sector sponsored funds based on the market
share enjoyed by them in the industry.
The data has been analyzed by using Beta, Sharpe’s differential, Jensen’s Alpha and Chi-test
has been applied to test the significance of the hypothesis.
It was found that there was no significant difference in the performance of the Public and
Private sector companies based on sector preferred for asset allocation.

[ CITATION Poo14 \l 16393 ]

References
Arora, K. (2015). Risk-adjusted Performance Evaluation of Indian Mutual Fund Schemes. Paradigm,
80-94.

Bheemanagouda, P. Y. (2017). A Study on the Performance of Large Cap Equity Mutual Funds in
India. IUP Journal of Financial Risk Management, 16.

Gupta, P. (2014). A Study of Trend in Asset Allocation among Public and Private Sector Sponsored
Mutual Funds in India and its Impact on the Performance of Open-ended Equity Funds. A
Journal of Management Sciences, 20.

Kanethia, D. (2010). Comparative Study of Various Mutual Funds Schemes in India . Amity Global
Business Review, 60-76.

Kotishwar, A. (2016). The Impact of External Funds Flows on Forex Reserves of India. Journal of
International Economics, 4-12.

M. SURESH KUMAR, D. G. (2017). EFFECTIVENESS OF VALUE ADDED SERVICE IN PUBLIC SECTOR

BANKS - A FACTOR ANALYSIS. CLEAR International Journal of Research in Commerce &
Management, 24.

Prakash Yalavatti, B. (2017). A Study on the Performance of Large Cap. IUP Journal of Financial Risk
Management, 30-44.

Sinha, R. P. (2015). Robust Benchmarking of Indian Mutual Funds-A Partial Fronter Approach.
International Journal of Financial Management, 16.

Solanki, U. (2014). RELATIONSHIP BETWEEN THE PERFORMANCE AND SIZE. International Journal of
Business & Engineering Research, 12.

Tomer, D. J., & Khan, P. N. (2014). Problems and Prospects of Mutual Funds. Journal of Commerce &
Management Thought, 32.