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A COMPARATIVE STUDY ON PERFORMANCE OF SELECTED MUTUAL FUNDS

Name : Shaik.Masum

Roll no : 1981963102

Guide : Prof.Sardar Gugloth

INDUSTRY PROFILE:

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the
initiative of the Government of India and Reserve Bank. The history of mutual funds in India can be
broadly divided into four distinct phases:

First phase-(1964-87)

Second phase – (1987-93) (Entry of Public Sector Funds)

Third phase (1993-2003)- (Entry of Private Sector Funds)

Fourth phase - since February 2003

COMPANY PROFILE:

Prudential ICICI Mutual funds (49%: 51%) a joint venture Between Prudential public
limited company, UK’s leading insurance company and ICICI Bank Ltd India's Premier
financial institution. The joint venture was formed with the key Objective of Providing the
Indian investor mutual fund products to suit a variety of investment Needs. The Prudential
ICICI Mutual funds has already launched a range of products to suit Different risk and Maturity
profiles.

ICICI Mutual funds in a span of just over eight years, has Forged a Position of pre-
eminence in the Indian Mutual Fund industry as one of the largest Prudential ICICI Mutual funds
companies in the country with assets Under management of Rs. 9,860.43 billion (as per
march31,2017). The Company manages a comprehensive range of schemes to meet the Varying
investment needs of its investors spread across 68 cities in the country.

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NEED FOR THE STUDY:

Generally, the investors invest in mutual funds to reduce the risk and increase their
returns. This study is useful to the investors to taking decisions relating to selected mutual fund
investments.

OBJECTIVES OF THE STUDY:

1. To analyse the concept and parameters of mutual funds.


2. To study the different fund schemes of different companies.
3. To compare the performance of the different mutual fund schemes of different companies.
4. To know the average returns of selected mutual funds.

RESEARCH METHODOLOGY:

Research design:

The research approach used for the study is descriptive.

Data collection sources:

Secondary Data: Company Records, Websites.

Analytical tools for the study:

During the course of study for analysis and interpretation of data the following tools are used,

 Standard Deviation

 Beta

 Sharpe’s Measure

FINDINGS:

1. The average rate of return is high in case of ICICI prudential mutual funds when compared to
other other mutual fund schemes (i.e. 28.1%)
2. SBI Magnum Balanced Fund is less volatile when compared to funds as the calculated
standard deviation value is less than other fund calculated values (i.e.17.86).
3. RELIANCE REGULAR SAVING BALANCE FUNDS has calculated BETA value of
1.20, which is higher than all the other companies represents high market risk.

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4. Among the funds, ICICI PRUDENTIAL BALANCED FUND has higher Sharpe value
(i.e. 1.04) which means it gives high returns.

SUGGESTIONS:

 Balanced funds serve conservative investors seeking growth that outpaces inflation and
income that supplements current needs.
 Retired investors looking for low risk and expenses, Balanced funds are more preferable.
 Balanced funds can be useful for those investors who have an investment horizon of 3 to 5
years
 Though these funds are similar to any security investing in financial markets, balanced funds
do not guarantee any return& investor should be cautious of guaranteed returns.

SIGNATURE OF THE GUIDE

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