Iycee Charles de Gaulle Summary 8. as hypothesis are taken into considerations.

8. as hypothesis are taken into considerations.


8.1 Major Findings

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

8.2 Recommendations

8.3 Expectation from Study

8.4 Limitations of study     

Conclusion and Future scope of study

schemes of mutual funds selected for study are following

fund scheme (HDFC & SBI Mutual funds)

fund scheme (HDFC & SBI Mutual funds)

is known for higher risk and higher return

is known for stable returns and low risk

this is very much clear that fluctuation in stock market affect the value of
risk and return of fund irrespective of another factors .Indian market seen
back to back scandals in last decay since SEBI become more mature to tackle the
issues of market. In 2014 is better in comparison to last years but in 2015
again hit the market and returns of most high rated fund perform badly not only
my schemes under study. And in 2016 to 2017both the schemes perform much better
than past. In this period behave like ladder and snake but all funds in single
portfolio don’t follow the same track and behave differently in terms of risk
and return. In year 2013 to 2017 growth fund scheme keeping horizon period more
than 5 year gives much better result than balance fund schemes But old love of
Meerut people always stick them to traditional instrument and only public
sector fund while vive rent Delhi people believe in R of private mutual
fund irrespective of age or gender and qualification so they are in better
position to gain more profit out of good investment. And second most important
part of study after objective and problem statement. Hypothesis must frame keep
in mind tentative solution and all possible ranges and options. So as many as
hypothesis are taken into considerations. The depth of study go on increasing
so there is more scope for reader future researcher ,investor and Asset
management company. As long as my study concerned about most popular mutual
fund houses one is SBI belong to public sector and one is HDFC of private
sector and two most popular schemes one balance fund scheme and one Growth fund




is observed that even though mutual fund industry seems to grow in India the
growth is concentrated both with respect to investor category and place. It is
dominated by Institutional investors and all researches are solving the problem
of big investors somebody needed to talk about common investor especially about
the rural India

cities and debt oriented schemes leaving huge scope for growth. But large

of investor are still outside the umbrella of the industry. The reach of the
fund houses to different segments of investors is still a key challenge. One
possible solution could be achieved by new research by financial literacy and
awareness to stimulate investors in mutual fund investment. This will attract
investors towards mutual fund investment. The limited distribution network and
investor service can be enhanced for wider reach beyond large cities

Penetration in rural India by


As per prediction of Moody and S global agencies
that India in 2020 will be destinations of more than 900 million smart phones.

Now rural India is going to grasp technology very fast so
with the help of technology mutual could also flourish in bib way.

Financial services are so huge that can absorbed many
investor and they all be benefited equally.

Mobile is not only way of communication man to man but
can be channel of transferring cash and credit along with financial product.

Additional connections of telecom are realty of the day
and people from all over world are coming to India to invest in technology as
well as in financial product like mutual fund.

Now technology has change the face of world in big way
now common people are connected to main stream to avail advantages of growth
and development.

GPRS is boon for getting timely up adaptation about the
schemes of financial products


In our country we allow NRI in big way to invest in
Indian mutual funds. As this is well known facts that India stock market sees
the positive movement when dollar comes in to the market   and see the blow while NRI pullout their
investment. Mostly NRI are more interested to invest in Indian real   estate but performance of last decay shows
that   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 is
24-25%. These dramatic figures again  
carry the attention of NRI   and
bring back to mutual funds

 It is observed that even
though mutual fund industry seems to grow in India the growth is concentrated
both with respect to investor category and place.

is time to manage the prosperity of Indian investors because size of stock
market increasing day by day now it reached to fourteen trillions dollar. But
this also indicate good move of million people towards financial product rather
than being trapped in old love of real estate and gold but one thing is also
surprising that major holding in mutual funds still remain with institutional
investors only. This major challenge before mutual fund house remain constant
and  movement of bigger player is good
and bad both if Institutional investor pull their investment market cress  and if they remain invested things go right
and the base remain acute this has very strange impact in future MF industry


We will plan to organize numbers of programs in the form
of Diaspora to attract the old Indian friends in series of ongoing aim  every year of 9 January .we celebrate
prewash-debus and called numbers of delegates 
from  different countries this
year this event is very unique because political dignitaries from 34 countries
about 92 politician   and  all are agree to invest in India



8.1 Major

After computation of average returns of both the schemes
growth fund and balance fund of both the house of mutual from 2010 onwards
shows fluctuations from bench mark value BSE 100

2011 is bad year for Indian mutual fund industry
in same both the schemes show negative return

In 2012 SBI Equity growth fund is better option
than HDFC Equity growth fund due to higher standard deviation

In 2010 HDFC Equity growth is better option due
to higher Sharpe ratio

In 2012 SBI Equity growth fund has marginally
higher 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 Trenyer
ratio than SBI Equity fund so in term of risk to return HDFC equity fund is
better option

In 2010 to 2013 both the schemes have lower beta
so in this period in terms of fluctuations both lies in same territory

In year 2010 2013 both the schemes give lower
value of Treynor ratio that means low return to risk

In 2012 SBI balance fund shows higher standard
deviation than HDFC balance but giving good return

In year 2010 to 2013 HDFC Balance fund shows
higher value of jenses ratio so in same period HDFC Balance fund is better

Past record of the organization is a very
significant factor for investing in mutual fund.

Growth prospects are another factor which is
significant for the investors to invest in public sector and private sector
mutual fund schemes.

Credit ratings by different credit rating
agencies are a significant factor which influences the perception of investors.

Market fluctuations significantly influence the
investors for investment decisions

Portfolio selection and selecting the types of
securities is a very significant

Criterion for judging the   performance of mutual funds.

HDFC Equity fund has higher value of jenses
ratio 6.8317

While in same period SBI Equity fund has very
less value of jense ratio only 0.7751

2016 continuously having more value of jense
ratio by HDFC Equity fund that is 303.4922

While in same period SBI Equity fund has only
value of jense is much blew 34.7388

2015 Again HDFC Equity (6.1075) fund beat the
SBI Equity fund (-0.703)

Result: in all the cases of 2015.2016 and 2017
HDFC Equity fund is far better option than S BI Equity fund

In 2014   SBI (E) has higher ratio jense ratio than
HDFC(E) so the systematic risk of SBI(E) is much better diversified  and reduced so return naturally is increased
for SBI(E)

In 2017 HFC balance fund shows higher Jensen

In 2016 HDF balance fund shows higher Jensen
ratio 23.8938 while SBI balance fund

Has much lesser value 4.0964

Result: In these entire years HDFC balance fund
is better option

In 2014 SBI (B) fund has higher jeans ratio that
means in given situation systematic risk of SBI (B) is better diversified than

 Performance of SBI
growth fund (2010-2017)




3 year

5 year

SBI magnum

Large cap




 Table 8.1.1

Source: Economic time

SBI growth fund shows good returns as horizon period
increases the returns are also increases that quite evident by table

One year 12.9%

Three year 14.4%

Five year 20.1%



 SBI schemes 10
years ago. But a steady improvement in performance has now made this fund most
popular among the retail investor in mid cap categories.

The fund has managed a strong climb up the ratings ladder
from just one star in 2014 to five stars in 2017, without any fail in
performance in current years.

In terms of market-cap tilt, the fund is more mid-cap
tilted than its peers. In the 2015year or so, the large-cap allocation has been
at 45-55% at most times, with mid-cap weights at 25-35% small cap exposure of
about 15-20 %. The ttuff years for blue chips. Though the performance has been
more muted in 2016, this show has led to its 3year and 5year returns defeating
its category by 4 to 5 % points and benchmark by a comfortably 7-10 percentage

Table 11 HDFC-EQ-LC (20011 to2017)




Accumulative return






Table Growth fund scheme of HDFC gives better and much
higher  return  than 
SBI growth fund scheme

After deducting expenses net percentage is 32.1%






If investor is young and willing to stay in longer time .So
investor should invest in equity oriented schemes

investor needed money in short time so investor need to invest in Debt oriented

must think beyond return rather focus on whole performance of the fund

investor should not relay on statistical values only like alpha ,beta, standard
deviation simple logic chose the good scheme matching with objective and be

should not run after brand but chose good schemes than brand and not invest all
money into single scheme

situation comes and all the indicator shows negative value in this period don’t
take panic its right time to invest more



The game changers are expected to supplement this trend

1. The demographic shift towards a younger workforce that
is more aligned with technology will provide the industry with a larger
customer base;

 2. The expected
growth of HNIs augurs well for the industry, especially in the context of the
ticket size of their investment and preference for equity;

 3. If e-commerce
platforms are allowed to sell mutual funds coupled with simpler e-KYC process,
this would open up a larger market for mutual funds;

 4. Replicating the
model adopted for Jan Dhan savings accounts as well as using the payment banks
to sell mutual funds, could lead to further increase in the customer base;

 5. Using analytics
and data-driven models would help to retain and mine the customers better;

 6. Deploying
technology to build user-friendly models for customer engagement would resonate
better with the young and technologically savvy customer bases


The study is limited to SBI growth fund scheme and HDFC
growth fund scheme

Study also done for SBI Balance fund scheme and HDF  Balance fund scheme

Only two schemes are taken for comparative analysis.

The study is limited to just finding the risk and return
associated 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 2017

The study focus on only two cities of India Delhi and

8.3 Expectation
from my study

My study is based on primary and secondary data as
primary data is collected from two major cities of India which represent truly
country as well as other countries because both cities are centre of many
foreigners. So my study is not only serving the academic need but also doing
great job of serving country by making aware about most modern financial
instrument mutual to the masses so that they could achieve their financial goal
and 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 also
useful in nation building