International Research Journal of Engineering and Technology (IRJET)
e-ISSN: 2395 -0056
Volume: 04 Issue: 02 | Feb -2017
p-ISSN: 2395-0072
www.irjet.net
TREND AND PERFORMANCE OF SELECTED MUTUAL FUNDS 1 Dr. Shanthi Rangasamy, 2 M. Sathiya Priya 1
Assistant Professor, Department of Management, Kaamadhenu Arts and Science College, Erode, Tamilnadu, India 2
Research Scholar, Department of Management, Kaamadhenu Arts and Science College, Erode, Tamilnadu, India
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Abstract - The study was conducted to find out the
performance evaluation of various company mutual fund schemes. The main objectives of this study is to analyse the risk and return of the schemes and to evaluate the performance of selected companies equity, debt balanced scheme using Treynor, Sharpe, Jensen measure etc.,. This study mainly focused on debt and equity balanced funds .The study will be carried out using the secondary data and observed the transaction of the securities trading and movements of funds. 5 mutual funds were selected for this study and they are Birla Sunlife Adv Fund Plan B (G), HDFC Equity Fund Growth Option, ICICI Prudential Dynamic Plan(G), Birla Sunlife Dynamic Bond Fund(G) and HDFC High Interest Fund(G).The data have been collected from particular company’s annual reports. This study is an attempt to the evaluate the various companies mutual fund schemes with respect to 4 financial years (2012-2016) Key Words: Performance evaluation, Mutual funds, Investors, Trend analysis, Investment
1.INTRODUCTION Mutual funds provide the services of experienced and skilled professionals, backed by a dedicated investment research team that analyze the performance and prospects of companies and suitable investment to achieve the objectives of the scheme, More investor friendly regulatory measures have been taken both by SEBI to protect the investor and by the government to and investor return though tax benefits. A comprehensive setup regulation for all mutual funds operating India was introduced with SEBI (mutual funds) regulations, 1996 these regulations, set uniform standards for all funds. Putting the AUM of the India mutual fund industry in to comparison, the total of it is less than the deposits of SBI alone, constitute less than 11% of the total deposits held by the Indian banking industry. The main reason of its poor growth is that the mutual fund industry in India is new in the country. Large sections of Indian investors are yet to be created awareness with the concept. Hence it is the prime responsibility of all mutual fund companies, to market the product correctly abreast of selling.
Š 2017, IRJET
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2. REVIEW OF LITERATURE Tripathy (2007) highlighted the various facets of mutual funds. The study identified the various challenges to be encountered by mutual funds in future and concluded that the key to the success of mutual fund industry is the perceived confidence of the investors in the organization in total. Another study reported poor performance of many selected schemes and suggests that the managers of the schemes have to redesign and change the investment pattern 13 by identifying the likely phases in the market (bullish / bearish) well in advance and emerging stocks on a continuous basis. Sankaran (2008) studied the growth and future prospects of mutual fund industry in India. The study also examined the regulatory framework of mutual funds in India and pointed out that regulations should be strengthened for ensuring better service to the investors. SatyaSwaroop (2009) evaluated the performance of 23 equity based mutual funds during the period April 1996 to March 2009. He used the Sharpe ratio, Treynor ratio and Jensen measure in his study and concluded that in the public sector UTI mutual fund schemes and in the private sector Franklin Templeton schemes out- performed the market. Khurana & Panjwani (2010) used the Sharpe, Treynor and Jensen measure in order to evaluate the performance of fifteen (15) open ended hybrid mutual fund schemes . The study finds that all the schemes have out-performed the market in terms of most of the measures used in the study except ICICI Prudential Balanced Fund-G and Principal Balanced Fund-G. Rao and Daita (2011) analyzed the influence of fundamental factors such as economy, industry and company on the performance of mutual funds. With the help of correlation matrix, Augmented Dicky-Fuller (ADF) test and Granger casualty test, they tried to find out the relationship between real economic variables and their impact on the performance of mutual funds. The study concluded that the real economic variables are not significantly influencing the investment in ISO 9001:2008 Certified Journal
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