A

PROJECT REPORT

On
“ ANALYSIS OF AXIS MUTUAL FUNDS ”
IN
NJ INDIA INVEST PVT LTD
A Project report submitted to the

R.V.R. & J.C. COLLEGE OF ENGINEERING (AUTONOMOUS)

In partial fulfillment of the requirement for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION
Submitted by
THALLAM HIMAJA NAGA MAHA SURYA

REGD NO: Y23MS112

Under the Guidance of

DR. K. SURYANARAYANA
ASSISTANT PROFESSOR

DEPARTMENT OF MANAGEMENT SCIENCES

1
 TABLE OF CONTENTS

CHAPTERNO TITLE

I INTRODUCTION

II OBJECTIVES & METHODOLOGY

III
INDUSTRY PROFILE&COMPANY PROFILE

IV
FINDINGS & SUGGESTIONS

V
BIBLIOGRAPHY

2
 INTRODUCTION

The Indian financial market offers numerous ways, apart from equity,
to invest, diversify and ensure a positively healthy portfolio. One such
method is commodity trading. The commodity market in India is over
100 years old but was officially established through a legal trading
mechanism in the year 2003. As every country relies on raw materials
to grow, the commodities markets have a special place in driving a
country’s economy and allowing investors to profit along the way.

INVESTMENT

The income that a person receives may be used for purchasing goods and
servicesthat he currently requires, or it may be saved for purchasing
goods and services that he may require in the future. In otherwords,
income can be what is spent for current consumption or saved for the
future consumption. Savings are generated when a person or an
organization abstains from present consumption for a future use. The
person savings a part of his income tries tofind a temporary repository
for his saving until they are required to finance his of the future
expenditure. This results in investment.

MEANING OF INVESTMENT

Investment is an activity that is engaged in by people who have savings,

i.e., investments are made from savings, or in other words, people invest
their savings. But all savers are not investors, investment is an activity
which is different from saving.

3
OBJECTIVES OF THE STUDY

The following are the objectives of the study

• To present an overview of mutual funds in India.

• To evaluate the performance of different schemes of diversified
and banking mutual funds.
• To understand the nature of various mutual fund schemes
offered by Angel stock broking limited.
• To analyze the trends in returns of selected mutual funds.
• To offer suitable suggestions based on findings of the study.

4
 SCOPE OF THE STUDY

 The study has been conducted to understand the position

of the various mutual fund schemes offered by Angel stock
broking ltd.

 In this study analysis was made on various funds offered by

Angel stock broking ltd.

 The study here has been limited to do analysis of six mutual

funds offered by Angel stock broking ltd.

 List of mutual funds considered for the study

1. Reliance Small Cap Fund.
2. Reliance Banking Fund.
3. ICICI Prudential Mid Cap Fund.
4. ICICI Prudential Banking and Financial Services Fund.
5. Sundaram Select Midcap Fund.

5
 NEED FOR THE STUDY

The basic purpose of the study is to give broad idea on mutual funds
and analyze various schemes to highlight the diversified investment that
mutual fund offers to its investors.

 To study the basic concepts and trends in the mutual fund industry.

 The study enables a fresh investor to understand easily the various

benefits offered by Angel stock broking ltd

 On the growth and dividend schemes of various types of funds

according to their investment objective.

 The study provides a clear idea on growth of mutual funds from past

to present scenario and its scope in the future.

 The study will definitely help the company and the researcher to

analyze the present situation of various schemes and to know

whether these funds are performing to their expectations or not.
Researcher has analyzed these mutual funds schemes with
performance measures like beta, standard deviation, etc.
 At the end of the study, one can conclude what type of investments

would be ideal with reference to the risk taking abilities of the

investors and which type of investments would suit their financial
needs and analysis.

6
 LIMITATIONS OF THE STUDY

• The study is conducted in a limited area only.

• There is a difficulty in getting a continuous data relating to a
past period regarding the mutual fund schemes.
• Lack of additional information due to confidential matters.

7
 MUTUAL FUNDS INDUSTRY:

The origin of mutual fund industry in India is with the

introduction of the concept of mutual fund by UTI in the year
1963. Though the growth was slow, but it accelerated from the
year 1987 when non-UTI players entered the industry. In the past
decade, Indian mutual fund industry had seen dramatic
improvements, both quality wise as well as quantity wise. Before,
the monopoly of the market had seen an ending phase; the Assets
under Management (AUM) was Rs. 67bn. The private sector entry
to the fund family raised the AUM to Rs. 470bn in March 1993 and
till April 2004; it reached the height of 1,540bn.

The AUM of the Indian Mutual Funds Industry into

comparison, the total of it is less than the deposits of SBI alone,
constitute less than 11% of the total deposits held by the India n
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 intellectuated with the concept. Hence, it is
the prime responsibility of all mutual fund companies, to market
the product correctly abreast of selling. The mutual fund industry
can be broadly put into four phases according to the development
of the sector. Each phase is briefly described as under.

8
 FIRST PHASE – 1968

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was
set up by the Reserve Bank of India and functioned under the Regulatory and
administrative control of the Reserve Bank of India. In 1978 UTI was de-linked
from the RBI and the Industrial Development Bank of India (IDBI) took over the
regulatory and administrative control in place of RBI. The first scheme launched
by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700 cores of
assets under management.

SECOND-PHASE 1987-1993

Entry of non-UTI mutual funds. SBI Mutual Fund was the first followed by Can
bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian
Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund
(Oct 92). LIC in 1989 and GIC in 1990. The end of 1993 marked Rs.47, 004 as
assets under management.

THIRD PHASE – 1993-2000

With the entry of private sector funds in 1993, a new era started in the Indian
mutual fund industry, giving the Indian investors a wider choice of fund families.
Also, 1993 was the year in which first Mutual Fund Regulations came into being,
under which all mutual funds, except UTI were to be registered and governed.
The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the
first private sector mutual fund registered in July 1993.

In 1993 SEBI (Mutual Fund) Regulations were substituted by a more

comprehensive and revised Mutual Fund Regulations in 1996. The industry now
functions under the SEBI (Mutual Fund) Regulations 1996.

9
 FOURTH PHASE-SCIENCE FEB 2003

This phase had bitter experience for UTI. It was bifurcated into two separate
entities. One is the Specified Undertaking of the Unit Trust of India with
AUM of Rs.29, 835 crores (as on January 2003). The Specified Undertaking of
Unit Trust of India, functioning under an administrator and under the rules
framed by Government of India and does not come under the purview of the
Mutual Fund Regulations.

FUTURE OF MUTUAL FUNDS IN INDIA

By March 2007, Indian mutual fund industry reached Rs 3, 26,388 crore. It is

estimated that by 2010 March-end, the total assets of all scheduled
commercial banks should be Rs 40, 90, 000 crore.

ORGANISATION OF MUTUAL FUND

All mutual funds comprise four constituents – Sponsors, Trustees, Asset

Management Company (AMC) and Custodians.

Sponsors
The sponsors initiate the idea to set up a mutual fund. It could be a
registered company, scheduled bank or financial institution.
A sponsor has to satisfy certain conditions, such as capital, record (at least
five years’ operation in financial services), default free dealings and general
reputation of fairness.

Trust/ Board of Trustees

Trustees hold a fiduciary responsibility towards unit holders by protecting
their interests. Trustees float and market schemes, and secure necessary
approvals. They check if the AMC’s investments are within well-defined
limits, whether the fund’s assets are protected.
10
 Fund Managers/ AMC
They are the ones who manage money of the investors. An AMC takes
decisions, compensates investors through dividends, maintains proper
accounting and information for pricing of units, calculates the NAV, and
provides information on listed schemes. It also exercises due diligence on
investments, and submits quarterly reports to the trustees. A fund’s

Custodian
Often an independent organization, it takes custody of securities and
other assets of mutual fund. Its responsibilities include receipt and delivery
of securities, collecting income- distributing dividends, safekeeping of the
units and segregating assets and settlements between schemes. Their
charges range between 0.15-0.2 percent of the net value of the holders.

Mutual Fund Companies in India:

The private sector funds started penetrating the fund families. In the same
year the first Mutual Fund Regulations came into existence with re-
registering all mutual funds except UTI. The regulations were further given a
revised shape in 1996. The concept of mutual funds in India dates back to
the year 1963. The era between 1963 and 1987 marked the existence of only
one mutual fund Company in India with Rs.67 bn assets under management
(AUM), by the end of its monopoly era, the Unit Trust of India (UTI). By the
end of the 80s decade, few other mutual fund companies in India took their
position in mutual fund market.

The new entries of mutual fund companies in India were SBI Mutual
Fund, Can bank Mutual Fund, Punjab National Bank Mutual Fund, Indian
Bank Mutual Fund, Bank of India Mutual Fund.

11
 . The succeeding decade showed a new horizon in Indian mutual
fund . industry By the end of 1993, the total AUM of the industry was
Rs.470.04 bn.

Kothari Pioneer was the first private sector mutual fund company in India
which has now merged with Franklin Templeton. Just after ten years with private
sector player penetration, the total assets rose up to Rs.1218.05 bn. Today there
are 33 mutual fund companies in India.

12
 INDUSTRY PROFILE
NJ Wealth is a financial products distributor network that offers a wealth
management platform and a business platform for partners:

Wealth management platform

NJ Wealth offers a variety of financial and non-financial products for
investors, including first-time investors and ultra-high net worth
individuals. The flagship solution is the NJ E-Wealth Account, which is a
100% online platform that allows investors to access, record, and
manage their investment portfolio.
Business platform

NJ Wealth offers a business platform for partners that includes a product

basket and solutions for building and growing a financial products
business. NJ Wealth partners can become mutual fund distributors.
Some of the features of NJ Wealth include:
 100% online transactions
 Access to a wide range of products
 Multiple payment modes, including net banking, NEFT, RTGS, ACH, and
UPI
 Ready MF scheme portfolios for different risk profiles and investment
objectives
 Multiple modes of transaction, including mobile application, email, SMS,
and call and transact.
 Ability to add multiple bank accounts.

13
MAJOR MUTUAL FUND COMPANIES IN INDIA:

ABN AMRO Mutual Fund:

ABN AMRO Mutual Fund was setup on April 15, 2004 with ABN
AMRO Trustee (India) Pvt. ltd. As the Trustee Company. The
AMC, ABN
AMRO Asset Management (India) Ltd. was incorporated on November 4,
2003.
Deutsche Bank A G is the custodian of ABN AMRO Mutual Fund.

Birla Sun Life Mutual Fund:

Birla Sun Life Mutual Fund is the joint venture of Aditya Birla
Group
and Sun Life Financial. Sun Life Financial is a global
organization evolved in 1871 and is being represented in Canada,
the US, the

Philippines, Japan, Indonesia and Bermuda apart from India. Birla Sun Life
Mutual Fund follows a conservative long-term approach to investment.
Recently it crossed AUM of Rs. 10,000 crores.

Bank of Baroda Mutual Fund (BOB Mutual Fund) :

Bank of Baroda Mutual Fund or BOB Mutual Fund was setup on

October 30, 1992 under the sponsorship of Bank of Baroda. BOB Asset

14
 HDFC Mutual Fund:
HDFC Mutual Fund was setup on June 30, 2000 with two sponsors namely

Housing Development Finance Corporation Limited and

Standard
Life Investments Limited.

HSBC Mutual Fund:

HSBC Mutual Fund was setup on May 27, 2002 with

HSBC Securities and Capital Markets (India) Private Limited as
the sponsor. Board of Trustees , HSBC Mutual Fund acts as
the Trustee Company of HSBC Mutual Fund.
ING Vysya Mutual Fund:

ING Vysya Mutual Fund was setup on February 11, 1999 with the
same named Trustee Company. It is a joint venture of

Vysya and ING. The AMC, ING Investment

Management (India) Pvt. Ltd. was incorporated on April 6, 1998 .
ICICI PRUDENTIAL Mutual Fund:

The mutual fund of ICICI is a joint venture with

ic of America, one of the largest life insurance companies in the
US of A. ICICI PRUDENTIAL Mutual Fund was setup on 13th of
October, 1993 with two sponsors, Prudential Plc. and ICICI Ltd.
The Trustee Company formed is ICICI PRUDENTIAL Trust Ltd. and the AMC is

ICICI PRUDENTIAL Asset Management Company Limited incorporated on

22nd of June, 1993.

15
Sahara Mutual Fund:

Sahara Mutual Fund was set up on July 18, 1996

India Financial Corporation Ltd. as the sponsor. Sahara Asset

State Bank of India Mutual Fund:
State Bank of India Mutual Fund is the first Bank

sponsored Mutual Fund to launch offshore fund, the India

Magnum Fund with a corpus of Rs. 225 cr. approximately. Today it is the
largest Bank sponsored Mutual Fund in India. They have already launched
35 Schemes out of which 15 have already yielded handsome returns to
investors. State Bank of India Mutual Fund has more than Rs. 5,500cr as
AUM. Now it has an investor base of over 8lakhs spread over 18 schemes.
Tata Mutual Fund:

Tata Mutual Fund (TMF) is a Trust under the Indian

Trust Act, 1882.
The sponsors for Tata Mutual Fund are Tata Sons Ltd., and
Tata
Investment Corporation Ltd. The investment manager is Tata Asset

Management Limited and its Tata Trustee Company Pvt. Limited. Tata Asset
Management Limited's is one of the fastest in the country with more than
Rs. 7,703cr (as on April 30, 2005) of

AUM.

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 Kotak Mahindra Mutual Fund:

Kotak Mahindra Asset Management Company

(KMAMC) is a subsidiary of KMBL. It is presently having
more than 1,99,818 investors in its various schemes.
KMAMC started its operations in

December 1998. Kotak Mahindra Mutual Fund offers schemes catering to

investors with varying risk - return profiles. It was the first company to

launch dedicated gilt scheme investing only in government securities.

Unit Trust of India Mutual Fund:

UTI Asset Management Company Private

Limited,
established in Jan 14, 2003, manages the UTI
Mutual Fund with the support of UTI Trustee
Company Private Limited. UTI Asset

Management Company presently manages a corpus of over Rs.20000 Crore.

The sponsorers of UTI Mutual Fund are Bank of Baroda (BOB), Punjab
National Bank (PNB), State Bank of India

Reliance Mutual Fund:

Reliance Mutual Fund (RMF) was established as

trust under
Indian Trusts Act, 1882. The sponsor of RMF is Reliance
Capital
Limited and Reliance Capital Trustee Co. Limited is the Trustee. It was
registered on June 30, 1995 as Reliance Capital Mutual

17
Standard Chartered Mutual Fund:

Standard Chartered Mutual Fund was set up on March

13, 2000
sponsored by Standard Chartered Bank. The Trustee is
Standard Chartered Trustee Company Pvt. Ltd.

Standard Chartered Asset Management Company Pvt. Ltd. is the

AMC which was incorporated with SEBI on December 20, 1999

ADVANTAGES OF MUTUAL FUNDS:

Benefits of Mutual funds:

Affordability:

18
 A mutual fund invests in a portfolio of assets, i.e. bonds, shares, etc.
depending upon the investment objective scheme. An investor can buy in to
a portfolio of equities, which would otherwise be extremely expensive.

Diversification:
You must spread your investment across different securities (stocks,
bonds, money market instruments,

Real estate, fixed deposits etc.) and different sectors (auto, textile,
information technology etc.)
Professional Management:
It is the Fund Manager's job to (a) find the best securities for the fund,
given the fund's stated investment objectives; and (b) keep track of
investments and changes in market conditions and adjust the mix of the
portfolio, as and when required.

Variety:
Mutual funds offer a tremendous variety of schemes. This variety is
beneficial in two ways: first, it offers different types of schemes to investors
with different needs and risk appetites; secondly, it offers an opportunity to
an investor to invest sums across a variety of schemes, both debt and equity.

Tax Benefits:
Any income distributed after March 31, 2002 will be subject to tax in
the assessment of all Unit holders. However, as a measure of concession to
Unit holders of open-ended equity oriented funds, income distributions for
the year ending March 31, 2003, will be taxed at a concessional rate of
10.5%.

Regulations:
Securities Exchange Board of India (“SEBI”), the mutual funds
regulator has clearly defined rules, which govern mutual funds. These rules

19
relate to the formation, administration and management of mutual funds
and also prescribe disclosure and accounting requirements.

DISADVANTAGES OF MUTUAL FUNDS:

Mutual funds have their drawbacks and may not be for everyone.
No guarantee:
No investment is risk free. If the entire stock market declines in
value, the value of mutual fund shares will go down as well, no
matter how balanced the portfolio. Investors encounter fewer risks
when they invest in mutual funds than when they buy and sell stocks
on their own.

Fees and commissions:

All funds charge administrative fees to cover their day-to-day

expenses. Some funds also charge sales commissions or "loads" to
compensate brokers, financial consultants, or financial planners.

Taxes:

During a typical year, most actively managed mutual funds sell

anywhere from 20 to 70 percent of the securities in their portfolios. If
your fund makes a profit on its sales, you will pay taxes on the
income you receive, even if you reinvest the money you made.
Management risk:

When you invest in a mutual fund, you depend on the fund's manager
to make the right decisions regarding the fund's portfolio. If the manager
does not perform as well as you had hoped, you might not make as much
money on your investment as you expected.

20
Risk/Return Trade-Off:
The most important relationship to understand is the risk-return trade-off. Higher
the risk greater the returns/loss and lower the risk lesser the returns/loss.

Market Risk:
Sometimes prices and yields of all securities rise and fall. Broad outside influences
affecting the market in general lead to this. This is true, may it be big corporations
or smaller mid-sized companies.

This is known as Market Risk. A Systematic Investment Plan (“SIP”) that works on
the concept of Rupee Cost Averaging (“RCA”) might help mitigate this risk
.
Credit Risk:
The debt servicing ability (may it be interest payments or repayment of principal)
of a company through its cash flows determines the Credit Risk faced by you. This
credit risk is measured by independent rating agencies like CRISIL who rate
companies and their paper.
AAA’ rating is considered the safest whereas a ‘D’ rating is considered poor credit
quality. A well-diversified portfolio might help mitigate this risk.

21
Investment objectives:

Schemes can be classified by way of their stated investment objective

such as Growth Fund, Balanced Fund, and Income Fund etc.

Equity oriented Schemes:

These schemes, also commonly called Growth Schemes, seek to invest
a majority of their funds in equities and a small portion in money market
instruments. Such schemes have the potential to deliver superior returns
over the long term. The NAV prices of equity fund fluctuates with market
value of the underlying stop which are influenced by external factors such as
social, political as well as economic. Reliance Growth Fund, Reliance Index
Fund are examples of equity schemes

Sector Specific:
These schemes restrict their investing to one or more pre-defined
sectors, e.g. technology sector. Since they depend upon the performance of
select sectors only, these schemes are inherently more risky than general-
purpose schemes. They are suited for informed investors who wish to take a
view and risk on the concerned sector.

22
 Debt Based Schemes:
These schemes, also commonly called Income Schemes, invest in debt
securities such as corporate bonds, debentures and government securities.
The prices of these schemes tend to be more stable compared with equity
schemes and most of the returns to the investors are generated through
dividends or steady capital appreciation. These schemes are ideal for
conservative investors or those not in a position to take higher equity risks,
such as retired individuals.

Income schemes:

These schemes invest in money markets, bonds and debentures of

corporates with medium and long-term maturities. These schemes primarily
target current income instead of capital appreciation. They therefore
distribute a substantial part of their distributable surplus tothe investor by

23
way of dividend distribution. Reliance Income Fund, Reliance Short Term
Plan and Reliance Fixed Investment Plans are examples of bond schemes.

Liquid Income Schemes:

Similar to the Income scheme but with a shorter maturity than Income
schemes. An example of this scheme is the Reliance Liquid Fund.

Money Market Schemes:

These schemes invest in short term instruments such as commercial

paper (“CP”), certificates of deposit (“CD”), treasury bills (“T-Bill”) and
overnight money (“Call”).

Gilt Funds:
This scheme primarily invests in Government Debt. Hence the investor
usually does not have to worry about credit risk since Government Debt is
generally credit risk free. Reliance Gilt Fund is an example of such a scheme.

Hybrid Schemes:
These schemes are commonly known as balanced schemes. These
schemes invest in both equities as well as debt. Reliance Balanced Fund is
examples of hybrid schemes.

Index Schemes:

The primary purpose of an Index is to serve as a measure of the

performance of the

market as a whole, or a specific sector of the market. An Index also serves as

a relevant benchmark to evaluate the performance of mutual funds. Some
investors are interested in investing in the market in general rather than
investing in any specific fund. Such investors are happy to receive the

24
returns posted by the markets. Index Funds are launched and managed for
such investors. An example to such a fund is the Reliance Index Fund.
Tax Savings Schemes:
Investors (individuals and Hindu Undivided Families (“HUFs”)) are
being encouraged to invest in equity markets through Equity Linked Savings
Scheme (“ELSS”) by offering them a tax rebate. Units purchased cannot be
assigned / transferred/ pledged / redeemed / switched – out until
completion of 3 years from the date of allotment of the respective Units.

Open ended Schemes:

The units offered by these schemes are available for sale and
repurchase on any business day at NAV based prices. Hence, the unit capital
of the schemes keeps changing each day. Such schemes thus offer very high
liquidity to investors and are becoming increasingly popular in India.

Closed Ended Schemes:

The unit capital of a close-ended product is fixed as it makes a one-

time sale of fixed number of units. These schemes are launched with an
initial public offer (IPO) with a stated maturity period after which the units
are fully redeemed at NAV linked prices. In the interim, investors can buy or
sell units on the stock exchanges where they are listed. Unlike open-ended
schemes, the unit capital in closed-ended schemes usually remains
unchanged.

Interval Schemes:

These schemes combine the features of open-ended and closed-

ended schemes. They may be traded on the stock exchange or may be open
for sale or redemption during pre-determined intervals at NAV based prices.

Process of mutual fund:

25
Structure of Mutual Funds

26
 DATA ANALYSIS

TOOLS USED FOR DATA ANALYSIS

• AVERAGE RETURN
• STANDARD DEVIATION SHARPE RATIO

AVERAGE RETURN:

Average return is the simple mathematical average of a series of

returns generated over a period of time

Average Return (Rp):

= ∑Ri ÷ N

27
 STANDARD DEVIATION:
If an asset’s return has no variability, it has no risk. An investor
analyzing a series of returns on an investment over a period of years need to
know about the variability of its returns or in other words the assets total
risk. For determining total risk standard deviation is calculated. The fund
that has high standard deviation has high variability and thus has high risk
and vice versa

Formula = ( Average fund return Particular period fund return –)2
Number of returns
SHARPE RATIO:

The Sharpe ratio is a measure for calculating risk adjusted return and
this ratio has become the industry standard for such calculations. It was
developed by Nobel laureate William [Link]. The Sharpe ratio is the
average return earned in excess of the risk free rate per unit of volatility or
total risk

S = ( Rp – Rf ) ÷ σp
Average of return on portfolio – average rate of return on a risk free investment
Standard deviation of portfolio

Table 5.1: Table showing Comparison of Axis Blue Chip Fund - Growth plan

28
& AXIS BANKING & PSU DEBT FUND- Growth plan performance for
the Year 2020

Percentage Change in NAV's in the year 2020

Month Axis blue chip Fund Axis Banking & PSU
debt Fund
Jan 9.97 19.90
Feb 13.28 22.53
Mar 3.00 3.78
Apr 2.92 -0.88
May 0.00 -1.20
Jun -4.52 -7.32
Jul 6.24 10.90
Aug 0.57 0.19
Sep 1.98 -4.83
Oct 9.35 14.88
Nov 1.79 1.63
Dec 2.48 5.78
Average Return 3.905 5.8
Standard Deviation 4.57 9.26
Sharpe Ratio 0.715 4.98

29
 Graph 5.1: Graph showing Comparison of Axis blue chip Fund -
Growth plan & Axis Banking & PSU Debt Fund - Growth plan
performance for the Year 2020

25.00
Axis Blue Chip Fund
20.00
Axis baking & PSU fund
15.00

10.00

5.00

0.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
-5.00

-10.00

From the above diagram

In the year 2020, both Axis blue chip Fund - Growth plan & Axis Banking &
PSU debt Fund - Growth plan are showing positive and negative returns as
well during the 12 months period.

 Standard Deviation for :

Axis blue chip Fund is 4.57 and

Axis Banking & PSU debt

Fund is 9.26

 Sharpe Ratio for:

Axis blue chip Fund is 0.715 and

Axis Banking & PSU debt Fund is 4.98

30
Table 5.2: Table showing Comparison of Axis Blue Chip Fund - Growth plan

& Axis Banking & PSU Debt Fund Growth plan performance for the
Year 2021

Percentage Change in NAV's in the year 2021

Month Axis blue chip Fund Axis Banking & PSU
debt Fund
Jan 2.28 1.25
Feb -6.48 -0.88
Mar -6.32 -9.45
Apr -1.57 -2.87
May 0.98 7.35
Jun -1.07 -0.08
Jul -2.21 -4.53
Aug -5.0 -15.91
Sep -1.28 -10.20
Oct 5.2 8.23
Nov 13.65 19.06
Dec 8.66 -2.05
Average Return 0.528 -0.865
Standard Deviation 6.40 9.76
Sharpe Ratio -0.77 -2.30

31
 Graph 5.2: Graph showing Comparison of Axis Blue Chip Fund - Growth
plan & Axis Banking &PSU Debt Fund - Growth plan performance for the
Year 2021

20 Axis blue chip Fund

15
Axis banking& PSU fund
10
5

0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
-5
-10

-15

-20

From the above diagram

In the year 2021, both Axis blue chip Fund - Growth plan & Axis Banking
&PSU debt Fund - Growth plan are showing both positive and negative
returns as well during 12 months period.

 Standard Deviation for:

Axis blue chip Fund is 6.40 and

Axis Banking &PSU debt

Fund is 9.76.

 Sharpe Ratio for:

Axis blue chip Fund is -0.77 and Axis Banking &PSU debt Fund is -2.30

Table 5.3: Table showing Comparison of Axis Blue Chip Fund - Growth plan
32
& AXIS BANKING & PSU DEBT Fund- Growth plan performance for
the Year 2022

Percentage Change in NAV's in the year 2022

Axis Banking & PSU
Month Axis blue chip Fund
debt Fund
Jan 5.38 7.66
Feb -4.90 -12.07
Mar 3.75 4.09
Apr 11.33 16.38
May 42.04 3.91
Jun -2.24 21.58
Jul 9.8 1.24
Aug 6.54 -1.86
Sep 4.54 4.33
Oct 0.32 -1.83
Nov -38.71 9.96
Dec 20.88 5.06

Average Return 4.824 5.03

Standard Deviation 19.87 9.5
Sharpe Ratio 1.52 5.96

From the above diagram

33
 In the year 2022, both Axis blue chip Fund - Growth plan & Axis Banking
&PSU debt Fund - Growth plan are showing both positive and negative
returns as well during 12 months period.

 Standard Deviation for :

Axis blue chip Fund is 19.87 and

Axis Banking &PSU debt

Banking Fund is 9.5

 Sharpe Ratio for :

Reliance Small Cap Fund is 1.52 and
Reliance Banking Fund is 5.96

34
 Table 5.4: Table showing comparison of Axis Blue Chip Fund
Growth plan
&Axis banking &PSU debt fund - Growth plan performance for the year 2023

Percentage Change in NAV's in the year 2023

Month Axis Blue Chip Fund Axis banking
&PSU debt fund
Jan 7.53 5.05
Feb 3.35 8.30
Mar -0.80 0.16
Apr -1.78 -6.80
May -2.50 -0.70
Jun 0.65 0.87
Jul 0.30 0.18
Aug 9.37 3.00
Sep -8.70 -11.90
Oct 4.20 4.80
Nov 6.25 0.53
Dec 2.99 -0.04

Average Return 1.749 0.262

Standard Deviation 4.86 5.5
Sharpe Ratio 1.25 -1.92

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 1 Axis blue chip fund
Axis banking
5

0
Ja Fe M Ap Ma Ju J Au Se Oc No De
-5

-1

-1

From the above diagram

In the year 2023, both Axis blue chip Fund - Growth plan & Axis Banking
&PSU debt Fund - Growth plan are showing positively and negatively returns
as well during 12 months period.

 Standard Deviation for :

Axis blue chip Fund is 4.86 and

Axis Banking &PSU debt

Fund is 5.5

 Sharpe Ratio for :

Axis blue chip Fund is 1.25 and
Axis Banking &PSU debt Fund is
-1.92

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 FINDINGS

From the data analysis of “A comparative analysis on Performance Of

Diversified and Banking Mutual Funds, the following points are found out:
For the study, the selected equity mutual funds are taken i.e., Axis blue chip
Fund - Growth plan, Axis Banking & PSU debt Fund - Growth plan, SBI Blue
chip fund, SBI Financial Services Fund, ICICI Prudential Blue Chip Fund & ICICI
Prudential Banking and Financial Services Fund. And the data considered for
the data analysis is five years (2016-2020) on monthly basis.

 In 2020, when returns are considered for all the six schemes Axis Blue

Chip Fund - Growth plan, Axis Banking &PSU debt Fund - Growth plan,
SBI Mid Blue Chip fund, SBI Financial Services Fund, ICICI Prudential
Blue Chip Fund & ICICI Prudential Banking and Financial Services Fund,
all the six schemes are showing positive returns.
In 2020, when returns are
considered for all the schemes,
two schemes gave positive
returns i.e., Axis Blue Chip Fund
- Growth plan, ICICI Prudential
Blue Chip Fund and remaining
four schemes i.e., Axis Banking
&PSU debt Fund - Growth plan,
SBI Blue Chip fund, SBI Financial

 Services Fund &ICICI Prudential Banking and Financial

Services Fund are showing negative results.
 In 2021, when returns are considered for all the six schemes Axis Blue
Chip Fund -
Growth plan, Axis Banking & PSU debt Fund - Growth plan, SBI Blue
Chip fund, SBI Financial Services Fund, ICICI Prudential Blue Chip
37
 Fund& ICICI Prudential Banking and Financial Services Fund all the six
schemes are showing positive returns.

 In 2022, when returns are considered for all the schemes, three

schemes gave positive returns i.e., Axis Blue Chip Fund - Growth plan,
SBI Blue Chip fund, ICICI Prudential Blue Chip Fund and remaining
three schemes i.e., Axis Banking & PSU debt Fund - Growth plan, SBI
Financial Services Fund &ICICI Prudential Banking and Financial
Services Fund are showing negative results.

 In 2023, when returns are considered for all the six schemes Axis Blue
Chip Fund -
Growth plan, Axis Banking & PSU debt Fund - Growth plan, SBI Blue
Chip fund, SBI Financial Services Fund, ICICI Prudential Blue Chip
Fund& ICICI Prudential Banking and Financial Services Fund all the six
schemes are showing positive returns.

SUGGESTIONS

38
 After careful observation of data analysis the investments in Mutual funds are
very profitable. The following few suggestions were given which would help the
investor to maximize the return and minimize the risk.

• average return Sharpe ratio, and standard deviation.

• A comparative study on mutual funds should be made so as to assist the
organization in its vision in order to give personalizes advice to its clients Funds
should be classified along with risk return analysis by using regarding appropriate
scheme based on their risk profile.
• Since the standard deviation of Axis Blue Chip Fund is high, investing in this kind
of fund is not suitable for conservative investors.
• Funds that hold high standard deviation value suits for the investors who opts for
Risk. Hence the company should clearly be defined about the risk taking capacity
of an investor.
• Investor who are risk averse and who looks for assured returns can invest in the
SBI Blue Chip Fund which are offering highest average return.
• Based on the analysis investing in ICICI mutual funds is very profitable that too in
closed ended funds.
• ICIC funds are giving more yields, so Investors can choose ICICI funds in their
Portfolio.

BIBLOGRAPHY

39
The readings listed here had proved to be helpful in learning and
completion of my project

TITLE AUTHOR

SECURITY ANALYSIS DOGULAS HAMILTON BELLEMORE

FINANCIAL MANAGEMENT IM PANDEY

INVESTMENT ANALYSIS AND PRASANNA CHANDRA,TATA MC GRAW

PORTFOLIO HILL PUBLICATIONS
SECURITY ANALYSIS AND PORTFOLIO S. KEVIN
MANAGEMENT

Magazines:
• Business world-the mutual fund industry
Websites:

• [Link]
• [Link]
• [Link]

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•

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