8. as hypothesis are taken into considerations.
8.CHAPTER – 8 CONCLUSIONS AND FUTURE SCOPE8.
1 Major Findings8.2 Recommendations 8.3 Expectation from Study8.
4 Limitations of study Conclusion and Future scope of studyTheschemes of mutual funds selected for study are followingGrowthfund scheme (HDFC & SBI Mutual funds)Balancefund scheme (HDFC & SBI Mutual funds)Firstis known for higher risk and higher returnSecondis known for stable returns and low riskAndthis is very much clear that fluctuation in stock market affect the value ofrisk and return of fund irrespective of another factors .Indian market seenback to back scandals in last decay since SEBI become more mature to tackle theissues of market. In 2014 is better in comparison to last years but in 2015again hit the market and returns of most high rated fund perform badly not onlymy schemes under study. And in 2016 to 2017both the schemes perform much betterthan past. In this period behave like ladder and snake but all funds in singleportfolio don’t follow the same track and behave differently in terms of riskand return. In year 2013 to 2017 growth fund scheme keeping horizon period morethan 5 year gives much better result than balance fund schemes But old love ofMeerut people always stick them to traditional instrument and only publicsector fund while vive rent Delhi people believe in R of private mutualfund irrespective of age or gender and qualification so they are in betterposition to gain more profit out of good investment. And second most importantpart of study after objective and problem statement. Hypothesis must frame keepin mind tentative solution and all possible ranges and options.
So as many ashypothesis are taken into considerations. The depth of study go on increasingso there is more scope for reader future researcher ,investor and Assetmanagement company. As long as my study concerned about most popular mutualfund houses one is SBI belong to public sector and one is HDFC of privatesector and two most popular schemes one balance fund scheme and one Growth fundschemes FUTURE SCOPE OF STUDYItis observed that even though mutual fund industry seems to grow in India thegrowth is concentrated both with respect to investor category and place. It isdominated by Institutional investors and all researches are solving the problemof big investors somebody needed to talk about common investor especially aboutthe rural IndiaMegacities and debt oriented schemes leaving huge scope for growth. But largeSegmentof investor are still outside the umbrella of the industry.
The reach of thefund houses to different segments of investors is still a key challenge. Onepossible solution could be achieved by new research by financial literacy andawareness to stimulate investors in mutual fund investment. This will attractinvestors towards mutual fund investment. The limited distribution network andinvestor service can be enhanced for wider reach beyond large citiesPenetration in rural India bytechnology As per prediction of Moody and S global agenciesthat India in 2020 will be destinations of more than 900 million smart phones.Now rural India is going to grasp technology very fast sowith the help of technology mutual could also flourish in bib way.Financial services are so huge that can absorbed manyinvestor and they all be benefited equally.Mobile is not only way of communication man to man butcan be channel of transferring cash and credit along with financial product.
Additional connections of telecom are realty of the dayand people from all over world are coming to India to invest in technology aswell as in financial product like mutual fund.Now technology has change the face of world in big waynow common people are connected to main stream to avail advantages of growthand development.GPRS is boon for getting timely up adaptation about theschemes of financial productsINVESTMENT IN MF BY NRIIn our country we allow NRI in big way to invest inIndian mutual funds. As this is well known facts that India stock market seesthe positive movement when dollar comes in to the market and see the blow while NRI pullout theirinvestment. Mostly NRI are more interested to invest in Indian real estate but performance of last decay showsthat real estate is giving only 14%return but in case of debt mutual average return is 19% and in case of equity base mutual fund return is24-25%. These dramatic figures again carry the attention of NRI andbring back to mutual funds It is observed that eventhough mutual fund industry seems to grow in India the growth is concentratedboth with respect to investor category and place.
Itis time to manage the prosperity of Indian investors because size of stockmarket increasing day by day now it reached to fourteen trillions dollar. Butthis also indicate good move of million people towards financial product ratherthan being trapped in old love of real estate and gold but one thing is alsosurprising that major holding in mutual funds still remain with institutionalinvestors only. This major challenge before mutual fund house remain constantand movement of bigger player is goodand bad both if Institutional investor pull their investment market cress and if they remain invested things go rightand the base remain acute this has very strange impact in future MF industry We will plan to organize numbers of programs in the formof Diaspora to attract the old Indian friends in series of ongoing aim every year of 9 January .we celebrateprewash-debus and called numbers of delegates from different countries thisyear this event is very unique because political dignitaries from 34 countriesabout 92 politician and all are agree to invest in India 8.1 MajorFindingsAfter computation of average returns of both the schemesgrowth fund and balance fund of both the house of mutual from 2010 onwardsshows fluctuations from bench mark value BSE 100· 2011 is bad year for Indian mutual fund industryin same both the schemes show negative return· In 2012 SBI Equity growth fund is better optionthan HDFC Equity growth fund due to higher standard deviation· In 2010 HDFC Equity growth is better option dueto higher Sharpe ratio· In 2012 SBI Equity growth fund has marginallyhigher Sharpe ratio than HDFC Equity growth fund so in same year · SBI Equity fund is better option· In year 2012 HDFC Equity fund has higher Trenyerratio than SBI Equity fund so in term of risk to return HDFC equity fund isbetter option· In 2010 to 2013 both the schemes have lower betaso in this period in terms of fluctuations both lies in same territory· In year 2010 2013 both the schemes give lowervalue of Treynor ratio that means low return to risk· In 2012 SBI balance fund shows higher standarddeviation than HDFC balance but giving good return · In year 2010 to 2013 HDFC Balance fund showshigher value of jenses ratio so in same period HDFC Balance fund is betteroption · Past record of the organization is a verysignificant factor for investing in mutual fund.
· Growth prospects are another factor which issignificant for the investors to invest in public sector and private sectormutual fund schemes.· Credit ratings by different credit ratingagencies are a significant factor which influences the perception of investors.· Market fluctuations significantly influence theinvestors for investment decisions· Portfolio selection and selecting the types ofsecurities is a very significant· Criterion for judging the performance of mutual funds. · HDFC Equity fund has higher value of jensesratio 6.8317· While in same period SBI Equity fund has veryless value of jense ratio only 0.7751· 2016 continuously having more value of jenseratio by HDFC Equity fund that is 303.4922· While in same period SBI Equity fund has onlyvalue of jense is much blew 34.
7388· 2015 Again HDFC Equity (6.1075) fund beat theSBI Equity fund (-0.703)· Result: in all the cases of 2015.2016 and 2017HDFC Equity fund is far better option than S BI Equity fund · In 2014 SBI (E) has higher ratio jense ratio thanHDFC(E) so the systematic risk of SBI(E) is much better diversified and reduced so return naturally is increasedfor SBI(E)· In 2017 HFC balance fund shows higher Jensenratio· In 2016 HDF balance fund shows higher Jensenratio 23.8938 while SBI balance fund · Has much lesser value 4.0964 · Result: In these entire years HDFC balance fundis better option · In 2014 SBI (B) fund has higher jeans ratio thatmeans in given situation systematic risk of SBI (B) is better diversified thanHDFC (B) Performance of SBIgrowth fund (2010-2017) Fund category 1year 3 year 5 year SBI magnum Large cap 12.9% 14.
4% 20.1% Table 8.1.1Source: Economic time SBI growth fund shows good returns as horizon periodincreases the returns are also increases that quite evident by tableOne year 12.
9%Three year 14.4%Five year 20.1% ANALYSIS OF SBI GROWTH AND BALANCE FUND SCHEMES (2014 TO 2017) SBI schemes 10years ago.
But a steady improvement in performance has now made this fund mostpopular among the retail investor in mid cap categories.The fund has managed a strong climb up the ratings ladderfrom just one star in 2014 to five stars in 2017, without any fail inperformance in current years.In terms of market-cap tilt, the fund is more mid-captilted than its peers. In the 2015year or so, the large-cap allocation has beenat 45-55% at most times, with mid-cap weights at 25-35% small cap exposure ofabout 15-20 %. The ttuff years for blue chips. Though the performance has beenmore muted in 2016, this show has led to its 3year and 5year returns defeatingits category by 4 to 5 % points and benchmark by a comfortably 7-10 percentagepoints Table 11 HDFC-EQ-LC (20011 to2017) Fund Returns Expense Accumulative return HDFC-EQ-LC 33.
18 1.17 21364 www.valueresearch.
com Table Growth fund scheme of HDFC gives better and muchhigher return than SBI growth fund schemeAfter deducting expenses net percentage is 32.1% 8.2 RECOMENDATIONSIf investor is young and willing to stay in longer time .Soinvestor should invest in equity oriented schemesIfinvestor needed money in short time so investor need to invest in Debt orientedschemesInvestormust think beyond return rather focus on whole performance of the fundCommoninvestor should not relay on statistical values only like alpha ,beta, standarddeviation simple logic chose the good scheme matching with objective and bestayInvestorshould not run after brand but chose good schemes than brand and not invest allmoney into single schemeWheneversituation comes and all the indicator shows negative value in this period don’ttake panic its right time to invest more The game changers are expected to supplement this trendfurther. 1. The demographic shift towards a younger workforce thatis more aligned with technology will provide the industry with a largercustomer base; 2. The expectedgrowth of HNIs augurs well for the industry, especially in the context of theticket size of their investment and preference for equity; 3.
If e-commerceplatforms are allowed to sell mutual funds coupled with simpler e-KYC process,this would open up a larger market for mutual funds; 4. Replicating themodel adopted for Jan Dhan savings accounts as well as using the payment banksto sell mutual funds, could lead to further increase in the customer base; 5. Using analyticsand data-driven models would help to retain and mine the customers better; 6. Deployingtechnology to build user-friendly models for customer engagement would resonatebetter with the young and technologically savvy customer bases8.4 LIMITATIONS OF STUDY The study is limited to SBI growth fund scheme and HDFCgrowth fund schemeStudy also done for SBI Balance fund scheme and HDF Balance fund schemeOnly two schemes are taken for comparative analysis.
The study is limited to just finding the risk and returnassociated with two schemes of SBI Mutual fund and HDFC Mutual fund.The study covers only the current three years’performance of the funds, i.e. January 2015 to December 2017The study focus on only two cities of India Delhi andMeerut8.3 Expectationfrom my studyMy study is based on primary and secondary data asprimary data is collected from two major cities of India which represent trulycountry as well as other countries because both cities are centre of manyforeigners. So my study is not only serving the academic need but also doinggreat job of serving country by making aware about most modern financialinstrument mutual to the masses so that they could achieve their financial goaland by investing in mutual means indirectly contributing to capital formation.
Which is by and large take care of the Indian GDP. This way my study is alsouseful in nation building