A

PROJECT REPORT

ON

“A STUDY ON MUTUAL FUND INDUSTRY IN INDIA

WITH REFERENCE TO

NJ INDIA INVEST PVT. LTD. SANGLI”

SUBMITTED TO

SHIVAJI UNIVERSITY, KOLHAPUR.

FOR PARTIAL FULFILMENT OF THE AWARD OF THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION (MBA)

SUBMITTED BY

PRADIP DILIP PARLEKAR

UNDER THE GUIDANCE OF

DR. SAGAR WALWEKAR

(M.COM, PH. D)

THROUGHHE DIRECTOR

YASHWANTRAO CHAVHAN SCHOOL OF RURAL DEVLOPMENT

SHIVAJI UNIVERSITY

KOLHAPUR-416234

2022-2023
Ref. No. : HR/REC01/TR9741/07112022/10754

Date: 7th November 2022

CERTIFICATE

This is to certify that Mr. PRADIP DILIP PARLEKAR student of Yashwantrao Chavan School
Of Rural Development has successfully completed his project on "A STUDY ON MUTUAL
FUND INDUSTRY IN INDIA". The project period was from 25th August 2022 to 25th October
2022.

During this period he was found to be regular and hard working. We wish him all the Best in his
future endeavors.

Vatsal Soni
(Deputy General Manager - Human Resource)

This Letter is digitally generated and does not require signature.

07/11/2022 07:51 PM
 DECLARATION

I, the undersigned, hereby declare that this report entitled “A STUDY ON MUTUAL
FUND INDUSTRY IN INDIA” with special reference to “NJ INDIA INVEST PVT. LTD” is a
genuine and certified work prepared by me under the guidance of Dr. SAGAR WALWEKAR sir
and is my original work. The empirical findings in the report are based on the data collected by
me. The matter presented in this project report is not copied from any way, the university
authorities deem to be unfit. This work has not been submitted for the award of any diploma or
degree either in Shivaji University or any other.
This work is humbly submitted to Shivaji University for the award of the degree of
Master of Business Administration.

Place: KOLHAPUR

Date:

(PARLEKAR PRADIP DILIP)

 DEPARTMENT OF COMMERCE & MANAGEMENT
(MBA UNIT)
SHIVAJI UNIVERSITY, KOLHAPUR.

GUIDE’S CERTIFICATE

This is to certify that the project entitled “A STUDY ON MUTUAL FUND INDUSTRY IN
INDIA” with reference to NJ INDIA INVEST PVT. LTD submitted by Mr. PARLEKAR
PRADIP DILIP in partial fulfillment of his work for the award of MASTER OF BUSINESS
ADMINISTRATION (MBA) degree submitted to SHIVAJI UNIVERSITY, KOLHAPUR has
been completed under my supervision & guidance. To the best of my knowledge and belief, the
matter presented by her is original in nature and has not been copied down from any sources.
Also, this project has not been submitted earlier for the award of any degree or diploma of
SHIVAJI UNIVERSITY.

Place: KOLHAPUR

Date:

Dr. SAGAR WALWEKAR

(Project Guide)
 DEPARTMENT OF COMMERCE & MANAGEMENT
(MBA UNIT)
SHIVAJI UNIVERSITY, KOLHAPUR.

DIRECTOR’S RECOMMENDATION

Date:
To,
The Register,
Shivaji University,
Kolhapur.
Subject: M.A.B. Project Report.
Dear sir,
I am recommending the project entitled “A STUDY ON MUTUAL FUND INDUSTRY IN
INDIA” with special reference to NJ INDIA INVEST PVT. LTD, submitted by Mr.
PARLEKAR PRADIP DILIP as a partial fulfilment of the University requirements for the
awards of MASTER OF BUSINESS ADMINISTRATION (MBA) degree of SHIVAJI
UNIVERSITY, KOLHAPUR.

Place: KOLHAPUR
Date:

Dr. NITIN MALI

 ACKNOWLEDGEMENT

It gives me immense pleasure in acknowledging the invaluable assistance extended to

me by various personalities in the successful completion of this project report.
First of all, I express me since gratitude to Director and my project guide Dr. SAGAR
WALVEKAR. sir who have-been and will continue to be a source of inspiration to me. I am
grateful to him for making all the necessary facilities available to me for the completion of
project report under his guidance.
I express my sincere gratitude to Mr. GAURAV CHOUGALE Unit Manager of NJ
INDIA INVEST PVT. LTD. For allowing me to do the project in their organization. I am
thankful to them for their permissions and instructions to the concerned staff for extending
necessary co-operation and help to me, during data collection and understanding systems of the
company without which this project work would not have been possible.
Also, I extend surfeit thanks to Mr. PRADEEP PATIL Branch Manager of the company
for his valuable tips through discussion and constructive criticism, and always being a source of
inspiration for putting my best efforts to ensure the success in this project.
I take this opportunity to thank you my parents whose guidance and support has been a
motivation for me during my entire academic career and this project report is the result of it,
lastly I thank my friends who directly or indirectly helped me in completion of this project work.

Place: KOLHAPUR
Date:
(PARLEKAR PRADIP DILIP)
 EXECTIVE SUMMARY

Mutual Funds in India have seen tremendous growth in the last few decades. With a
population of 1.3 billion people and a rapidly growing economy, India presents a massive
opportunity for mutual fund companies to tap into. This study aims to provide an overview of the
mutual fund industry in India and the opportunities it presents for investors.
The study also looks at the potential risks associated with investing in mutual funds in
India, and the importance of diversification. It provides a comprehensive analysis of the Indian
mutual fund industry and concludes with a set of recommendations to ensure the continued
success of the industry.
Mutual funds are an important part of the Indian investment market, and have been
growing rapidly in recent years. This study examines the mutual fund industry in India in order
to understand the present state of the industry, its drivers, challenges, and opportunities.
This project is about studying and analyzing the performance of a few selected mutual
fund schemes. Today un investor is interested in tracking the value of his investments, whether
invested directly in the market or indirectly through Mutual Funds. This dynamic change has
taken place because of a number of reasons. With globalization and the growing competition in
the investments opportunity available he would have to make guided and rational decisions on
whether he gets an acceptable return on his investments in the funds selected by him, or if he
needs to switch to another fund.
In order to achieve such an end, the investor has to understand the basis of appropriate
preference measurement for the fund, and acquire the basic knowledge of the different measures
of evaluating the performance of the fund. Only then would he be in a position to judge correctly
whether his fund is performing well or not, and make the right decision.
The main objective of this study is to analyze the performance of the mutual fund
schemes in terms of risk and return. The report deals with a comparative study of five selected
AMCs in different mutual fund schemes.
 INDEX

CHAPTER CHAPTER NAME PAGE

NO. NO.

1. INTRODUCTION TO THE STUDY & 01-03.

METHODOLOGY

2. THEORETICAL BACKGROUND
04-16.

3. INTRODUCTION OF COMPANY 17-26.

4. ANALYSIS & INTERPRETATION OF DATA 27-36.

5. FINDING, SUGGESTION AND CONCLUSION 37-39.

6. BIBLIOGRAPHY 40.
 MBA Project Report.

CHAPTER - I
1.1. INTRODUCTION: -
A mutual fund is a financial intermediary in capital market that pools collective
investments in form of units from retail and corporate investors and maintain a portfolio
of various schemes which invest those collective investments in equity and debt
instruments on behalf of these investors. Mutual fund is expert entity which helps an
investor invest in equity and debt instruments indirectly rather than taking risk of
investing money directly in these instruments.
An ordinary investor has no expertise or knowledge to invest money directly into
equity market in India and most of the times investors lose their money due to wrong
selection of equity shares, or bonds. Hence, mutual funds as intermediary provide
expertise of portfolio management actively and diversify risk by spreading investments
from all investors in various equity shares and debt instruments. This helps investors
earn good returns at low risk compared to returns at high risk if investors invest on their
own directly in capital market.
A mutual fund is a collective reservoir or pool of funds which is managed by a
qualified and expert Fund Manager. It is a trust that takes funds from a nu mber of
investors who have a common investment goal and invests those funds in equities,
bonds, money market instruments and other securities. The income generated from this
combined portfolio is distributed proportionately amongst the investors after subt racting
relevant expenses and levies, by calculating a scheme’s ‘Net Asset Value’ or NAV.
Simply placed, the money pooled in by a large number of investors are allotted in units
by a mutual fund scheme. This pooled money invested in equity or bonds or shor t-term
securities shall grow or go down depending upon the performance of these investments.
This shall get reflected in the value of NAV.
Mutual funds are perfect for investors who either lack large sums for investment,
or for those who neither have the knowledge nor the time to research the market, yet
want to grow their wealth. In return, the fund house charges a small fee for their
professional expertise which is subtracted from the investment. The fees charged by
mutual funds are restricted to certain limits stated by the Securities and Exchange Board

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of India (SEBI). During the past few years mutual funds have achieved a favored status
when investors have been investing regularly in equity/balanced schemes through them.

1.2. NEED OF THE STUDY: -

The main purpose of doing this project was to know about mutual fund and its
functioning. This helps to know in details about mutual fund industry right from its inception
stage, growth and future prospects.
It also helps in understanding different schemes of mutual funds. Because my study
depends upon prominent funds in India and their schemes like equity, income, balance as well as
the returns associated with those schemes.
The project study was done to ascertain the asset allocation, entry load, exit load,
associated with the mutual funds. Ultimately this would help in understanding the benefits of
mutual funds to investors.

1.3. SCOPE OF THE STUDY: -

In my project the scope is limited to some prominent mutual funds in the mutual fund industry. I
analyzed the funds depending on their schemes like equity, income, balance. But there is so
many other schemes in mutual fund industry like specialized (banking, infrastructure, pharmacy)
funds, index funds etc.
My study is mainly concentrated on equity schemes, the returns, in income schemes the rating of
CRISIL, ICRA and other credit rating agencies.

1.4. OBJECTIVES OF THE STUDAY: -

➢ To give a brief information about the benefits available from Mutual Fund investment.
➢ To give an information of the types of schemes available.
➢ To discuss about the market trends of Mutual Fund investment.
➢ To study some of the mutual fund schemes and analysis them.
➢ To give an information about the regulations of mutual funds.

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1.5. RESEARCH METHODOLOGY: -

To achieve the objective of studying the stock market data has been collected. Research
methodology carried for this study can be four types
1) Primary
2) Secondary
3) Data analysis
4) Sample designing
1) Primary Data: -
The data, which has been collected for the first time and it is the original data.
In this project the primary data has been taken from NJ INDIA INVEST staff and guide of the
project.
2) Secondary Data: -
The secondary information is mostly taken from websites, books, journals, etc.
3) Data Analysis: -
The present research has been used various statistical tools and technics like percentage,
mean, graphical presentation etc.
4) Sample Designing: -
The present research selected 5 top listed companies in mutual fund like ICICI
PRUDENTIAL Mutual Fund, CANARA ROBECO Mutual Fund, HDFC mutual fund, KOTAK
mutual fund and SBI mutual fund.

1.6. LIMITATIONS OF THE STUDY: -

➢ The time constraint was one of the major problems.
➢ The study is limited to the different schemes available under the mutual funds selected.
➢ The study is limited to selected mutual fund schemes.
➢ The lack of information sources for the analysis part.

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CHAPTER – II
2.2. INTRODUCTION OF MUTUAL FUNDS: -
Mutual funds have become a very popular way to take some of the risk out of investing
in individual stocks by investors. Mutual funds are a collection of stocks selected by mutual fund
seller and sold to investors as shares in a fund. There are several types of funds that you can
invest in. Some of the more popular types are technology funds, growth funds, security funds,
and income funds. Mutual funds are very popular because they allow you to invest in a number
of stocks therefore greatly reducing the risks associated with putting your money in an individual
stock.
Mutual funds have become one of the most attractive ways for the average person to
invest their money. A mutual fund pools resources from thousands of investors and then
diversifies its investment into many different holdings such as stocks, bonds, or government
securities in order to provide high relative safety and returns.
Mutual Funds now represents perhaps the most appropriate opportunity for most investors. It is
no wonder that birthplace of mutual funds - the U.S.A.- the fund industry has already overtaken
the banking industry. The Indian industry has already started opening up many of the exciting
investment opportunities to Indian investors.
Though not insured like banks, mutual funds generally provide more return than the
current one to two percent obtainable through banks while still being one of the safest ways to
grow your money. There are an endless variety of mutual fund investment choices depending on
the degree of risk you feel comfortable with.
Mutual Funds have emerged as professional intermediaries. Besides providing the
expertise in stock market investing, these funds allow investing in small amounts and yet holding
a diversified portfolio to a limit.

2.3. HISTORY OF INDIAN MUTUAL FUND INDUSTRY: -

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 and started its operations in
1964 with the issue of units under the scheme US-64. The history of mutual funds in India can be
broadly divided into four distinct phases.

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➢ First Phase: -
1964-87 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 crores of assets under management.
➢ Second Phase: -
1987-1993 (Entry of Public Sector Funds) 1987 marked the entry of non- UTI, public
sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC)
and General Insurance Corporation of India (GIC). SBI Mutual Fund was the first non- UTI
Mutual Fund established in June 1987 followed by Canara 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 established its mutual fund in June 1989 while
GIC had set up its mutual fund in December 1990. At the end of 1993, the mutual fund industry
had assets under management of Rs.47,004 crores.
➢ Third Phase: -
1993-2003 (Entry of Private Sector Funds 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 the first Mutual Fund Regulations came into
being, under which all mutual funds, except LTI 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.
➢ Fourth Phase: -
since February 2003 In February 2003, following the repeal of the Unit Trust of India
Act 1963 UTI was bifurcated into two separate entities. One is the Specified Undertaking of the
Unit Trust of India with assets under management of Rs.29,835 crores as at the end of January
2003, representing broadly., the assets of US 64 scheme, assured return and certain other
schemes. The Specified Undertaking of Unit Trust of India, functioning under an administrator

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and under the rules framed by Government of India and does not come under the purview of the
Mutual Fund Regulations.
The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation 0
the erstwhile UTI which had in March 2000 more than Rs. 76,000 crores of assets under
management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual
Fund Regulations, and with recent mergers taking place among different private sector funds, the
mutual fund industry has entered its current phase of consolidation and growth. As at the end of
October 31, 2003, there were 31 funds, which manage assets of Rs. 126726 crores under 386
schemes.
Erstwhile UTI was bifurcated into UTI Mutual Fund and the Specified Undertaking of
the Unit Trust of India effective from February 2003. The Assets under management of the
Specified Undertaking of the Unit Trust of India has therefore been excluded from the total
assets of the industry as a whole from February 2003 onwards.
Currently Public Sector Banks like SBI, Canara Bank, Bank of India, institutions like
IDBI, GIC, LIC Foreign Institutions like Alliance, Morgan Stanley, Templeton and Private
financial
companies like HDFC, Prudential ICICI, DSP Merrill Lynch, Sundaram, Kotak Mahindra etc.
have floated their own mutual funds.

2.4. WHAT IS MUTUAL FUND?

A Mutual Fund is a vehicle for investing in stocks and bonds. It is not an alternative
investment option to stocks and bonds; rather it pools the money of several investors and invests
this in stocks, bonds, money market instruments and other types of securities. Buying a mutual
fund is like buying a small slice of a big pizza. The owner of a mutual fund unit gets a
proportional share of the fund's gains, losses, income and expenses.
A Mutual Fund is a body corporate registered with the Securities and Exchange Board of
India (SEBI), that pools up the money from individual/ corporate investors and invests the same
on behalf of the investors/unit holders, in equity shares, Government securities, Bonds, Call
money markets etc., and distributes the profits. In other words, a mutual fund allows an investor
to indirectly take a position in a basket of assets. A mutual fund pools together sums from

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individual investors and invests it in various financial instruments. Each mutual fund has its own
investment objective.
Mutual funds have become one of the most attractive ways for the average person to
invest their money. A mutual fund pools resources from thousands of investors and then
diversifies its investment into many different holdings such as stock, bonds, and securities in
order to provide highly relative safety and returns.
Each Mutual Fund with different type of schemes is managed by respective Asset
Management Company (AMC). An investor can invest his money in one or more schemes of
Mutual Fund according to his choice and becomes the unit holder of the scheme. The invested
money in a particular scheme of a Mutual Fund is then invested by fund manager in different
types of suitable stock and securities, bonds and money market instruments. Each Mutual Fund is
managed by qualified professional man, who use this money to create a portfolio which includes
stock and shares, bonds, gilt, money-market instruments or combination of all.

2.5. MUTUAL FUND STRUCTURE: -

The SEBI (Mutual Funds) Regulations 1993 define a mutual fund (MF) as a fund
established in the form of a trust by a sponsor to raise monies by the Trustees through the sale of
units to the public under one or more schemes for investing in securities in accordance with these
regulations.
These regulations have since been replaced by the SEBI (Mutual Funds) Regulations,
1996. The structure indicated by the new regulations is indicated as under.
A) The sponsor: -
The Sponsor is the creator of the fund, establishes the mutual fund and gets it registered
with SEBI and will typically hold a number of voting shares (perhaps 100) in the fund, but these
are not entitled to any distributions or share in the equity. All of the equity belongs to the
investors, typically in the form of non-voting "preferred redeemable shares" The voting shares
generally control management of the fund, apart from limited major decisions. The sponsor is the
Settlor of the Trust that holds Trust property on behalf of investors who are the beneficiaries of
the Trust. The sponsor is also required to contribute at least 40% of the capital of the asset
management company, which is formed for managing the assets of the Trust.

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B) The board of trustees: -

The mutual fund needs to be constituted in the form of a trust and the instrument of the
trust should be in the form of a deed registered under the provisions of the Indian Registration
Act, 1908. The supervisory role is fulfilled by the Board of Trustees of the Investment Company.
The board of trustees manages the MF and the sponsor executes the trust deeds in favors of the
trustees. It is the job of the MF trustees to see that schemes floated and managed by the AMC
appointed by the trustees are in accordance with the trust deed and SEBI guidelines.
C) The asset management company (AMC): -
The company that manages a mutual fund is called an AMC. For all practical purposes, it
is an organized form of a "money portfolio manager". An AMC may have several mutual fund
schemes with similar or varied investment objectives. The AMC hires a professional money
manager, who buys and sells securities in line with the fund's stated objective.
All Asset Management Companies (AMCs) are regulated by SEBI and/or the RBI (in
case the AMC is promoted by a bank). In addition, every mutual fund has a board of directors
that represents the unit holders' interests in the mutual fund.
This entity that undertakes the designing and marketing of schemes, raises money from
the public under the schemes and manages the money on behalf of its owners. To segregate the
collected funds from this entity's own funds, the corpus is placed in a legal vehicle. It is the
character of this legal vehicle that determines the character of the Fund itself. Irrespective of the
nature of the structure, what is more fundamental is that in view of the fiduciary role of the AMC
or the fund manager towards the public, there is a need for supervision of the activities of the
AMC or fund manager by a separate body. The assets of the Trust comprise of properties of the
schemes, which are floated by the asset management company with the approval of the Trustees
Schemes may have different characteristics - they may be open or closed ended or may have a
particular investment focus or portfolio composition. Finally, the safe custody of assets of the
Trust is entrusted to one or more custodians.
D) The custodian: -
Custodian holds the fund's cash and investment assets. Commonly, parts of the fund's
assets are held by one or more brokers who execute trades on behalf of the fund Custodial Fees
can also be a fixed fee or a percentage of NAV. Where a broker acts as de facto custodian, it

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usually charges on a transactional basis. Apart from these four there is registrar or a transfer
agent who acts as a key party.
E) Administrator: -
Administrator acts as registrar and transfer agent, keeps the books and records of the
fund, and calculates the NAV. Depending on the complexity of the fund, the administrator's fees
could be as little as a few thousand dollars a year or as much as 0.5 to 0.65 % of the NAV per
annum. Sometimes the administrator's fees are included within the management fee. In certain
situations, the administrator subcontracts a part of the work, particularly the NAV certification,
to the investment manager.

2.6. ADVANTAGES AND DISADVANTAGES: -

Every investment has advantages and disadvantages. But it's important to remember that
features that matter to one investor may not be important to you. Whether any particular feature
is an advantage for you will depend on your unique circumstances. For some investors, mutual
funds provide an attractive investment choice because they generally offer the following
advantages.
• Advantages: -
A) Diversification: -
Diversification is an investing strategy that can be neatly summed up as "Don't put all
your eggs in one basket." Spreading your investments across a wide range of companies and
industry sectors can help lower your risk if a company or sector fails. Some investors find it
easier to achieve diversification through ownership of mutual funds rather than through
ownership of individual stocks or bonds.
B) Affordability: -
Some mutual funds accommodate investors who don't have a lot of money to invest by
setting relatively low amounts for initial purchases, subsequent monthly purchases or both.
C) Liquidity & flexibility: -
Mutual fund investors can readily redeem their shares at the current NAV plus any fees
and charges assessed on redemption at any time Through features such as regular investment

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plans, regular withdrawal plans and dividend reinvestment plans, you can systematically invest
or withdraw funds according to your needs and convenience.
D) Easy entry and exit: -
Filling a mutual fund application or a redemption form is all that it takes while entering
or exiting a mutual fund. But with equity shares, you need to have an account with a stockbroker
(for buying & selling) and another with a depository participant. Some investors may find this
cumbersome.
E) Tax benefits: -
Section 88 for Equity Linked Saving Schemes, ability to reinvest your proceeds from
capital gains into mutual funds under section 54EA & 54EB and tax-free status for equity-
oriented funds for three years starting from April 1, 1999 are popular benefits that investors in
mutual funds can avail of.
F) Transparency: -
One gets regular information on the value of the investment in addition to disclosure on
the specific investments made by one’s scheme, the proportion invested in each class of assets
and the fund manager's investment strategy and outlook. Well Regulated-All Mutual Funds are
registered with SEBI and they function within the provisions of strict regulations designed to
protect the interests of investors. The operations of Mutual Funds are regularly monitored by
SEBI.
• Disadvantages: -
A) Costs Despite Negative Returns: -
Investors must pay sales charges, annual fees, and other expenses regardless of how the
fund performs. And, depending on the timing of their investment, investors may also have to pay
taxes on any capital gains distribution they receive even if the fund went on to perform poorly
after they bought shares.
B) Lack of Control: -
Investors typically cannot ascertain the exact make-up of a fund's portfolio at any given
time, nor can they directly influence which securities the fund manager buys and sells or the
timing of those trades.

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C) Price Uncertainty: -
With an individual stock, you can obtain real-time (or close to real-time) pricing
information with relative ease by checking financial websites or by calling your broker. You can
also monitor how a stock's price changes from hour to hour or even second to second. By
contrast, with a mutual fund, the price at which you purchase or redeem shares will typically
depend on the fund's NAV, which the fund might not calculate until many hours after you've
placed your order. In general, mutual funds must calculate their NAV at least once every
business day.

2.7. REGULATORY BODY FOR MUTUAL FUNDS: -

Securities Exchange Board of India (SEBI) is the regulatory body for all the mutual funds
mentioned above. All the mutual funds must get registered with SEBI. The only exception is the
UTI, since it is a corporation formed under a separate Act of Parliament.
• Broad Guidelines Issued by SEBI for a MF: -
SEBI is the regulatory authority of Mutual Funds. SEBI has the following broad
guidelines pertaining to mutual funds:
➢ Mutual Funds should be formed as a Trust under Indian Trust Act and should be operated
by Asset Management Companies (AMCs).
➢ Mutual Funds need to set up a Board of Trustees and Trustee Companies. They should also
have their Board of Directors.
➢ The net worth of the AMCs should be at least Rs.5 crore.
➢ AMCs and Trustees of a Mutual Fund should be two separate and distinct legal entities.
➢ The AMC or any of its companies cannot act as managers for any other fund.
➢ AMCs have to get the approval of SEBI for its Articles and Memorandum of Association.
➢ All Mutual Funds schemes should be registered with SEBI.
➢ Mutual Funds should distribute minimum of 90% of their profits among the investors
There are other guidelines also that govern investment strategy, disclosure norms and
advertising code for mutual funds.

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2.8. ROLE OF A FUND MANAGER: -

Fund managers are responsible for implementing a consistent investment strategy that
reflects the goals and objectives of the fund. Normally, fund managers monitor market and
economic trends and analyze securities in order to make informed investment decisions. Thus,
the role of fund manager is very crucial.
• Account Statement: -
When the units are bought or get allotted a statement will be issued mentioning the
number of units allotted/bought and redeemed by you. The recording of entries would be similar
to the passbook entries in the bank. In mutual fund terminology it is called Account Statement.
After investing in a mutual fund investor gets an account statement, which shows his
holding and the price at which bought units. The account statement is computer generated and
cannot be traded or transferred. The account statement shows the:
➢ holding details
➢ the number of units outstanding
➢ value of the holdings
All transactions relating to purchase units, redemption of units, dividend, reinvestment, etc
are shown in the account statement.

2.9. REGULATIONS OF MUTUAL FUNDS IN INDIA: -

In India SEBI and RBI act as regulators of mutual fund. SEBI (Mutual Fund)
REGULATIONS,1996 The provisions of this regulations pertaining to AMC are:
➢ All the schemes to be launched by the AMC need to be approved by the trustees and
copies of offer document of such schemes are to be filed with SEBI.
➢ The offer document shall contain adequate disclosure to enables the investor to make
informed decision.
➢ Advertisement in respect of schemes should be in conformity with the SEBI prescribed
advertisement code, and discloses the method and periodicity of the valuation of
investment sales and repurchase in addition to the investment objectives.
➢ The listing of close ended schemes is mandatory and every close ended scheme should
be listed on a recognized stock exchange within six months from the closure of
subscription. However, listing is not mandatory in case the scheme provides for monthly

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income or caters to the special classes of persons like senior citizen, women, children,
and physically handicapped. If the scheme discloses detail of repurchase in the offer
document: if the schemes open for repurchase within six months of closure of
subscription.
➢ Units of a close ended scheme can be opened for sale or redemption at a predetermined
fixed interval if the minimum and maximum amount of sale, redemption, and periodicity
is disclosed in the offer document.
➢ Units of a close ended scheme can also be converted into an open-ended scheme with the
consent of majority of the unit holder and disclosure is made in the offer document about
the option and period of conversion.
➢ Units of a close ended scheme may be rolled over by-passing resolution by a majority of
the shareholders.
➢ No scheme other than unit linked schemes can be opened for more than 45 days.
➢ The AMC must specify in the offer document about the minimum subscription and the
extent of over subscription, which is intended to be retained. In the case of over
subscription, all applicants applying up to 500 units must be given full allotment
subjected to over subscription.
➢ The AMC must refund the application money if minimum subscription is not received
and also the excess over subscription with in the six weeks of closure of subscription.
➢ Guaranteed returns can be provided in a scheme if such returns are fully guaranteed by
the AMC or sponsor. In such cases, there should be a statement indicating the name of
the person, and the manner in which the guarantee is to be made must be stated in the
offer document.
➢ A close ended scheme shall be wound up on redemption date, unless it is rolled over, or
if 75% of the unit holders of a scheme pass a resolution of winding up of the scheme : if
the trustee on happening of any event, requires the scheme to be wound up: or if SEBI,
so directed in the interest of investors.

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2.10. TYPES OF MUTUAL FUNDS: -

A) Open – Ended Funds: -
An open-end fund is one that is available for subscription all through the year. These do not
have a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value ("NAV")
related prices. The key feature of open-end schemes is liquidity.
B) Close-Ended Funds: -
A close ended fund makes a one-time sale of a fixed number of units. It has a fixed maturity.
It does not allow investors to buy or redeem units directly from the funds. However, to provide
liquidity to investors many closed-end funds get themselves listed on stock exchange Funds do
offer “buy-back of funds/units” thus offering another avenue for liquidity to close-ended fund
investor.
C) Interval Funds: -
Interval funds are that funds, which combines the features of open-ended and close-ended
funds. The units may be traded on the stock exchange or may be open for sale or redemption
during pre-determined intervals at NAV related prices.
D) Load or no-load Fund: -
A load fund is one that charges a percentage of NAV for entry or exit. That is, each time
one buys or sells units in the fund, a charge will be payable. This charge is used by the mutual
fund for marketing and distribution expenses. However, the investor should also consider the
performance track record and service standard of the mutual fund, which are more important.
Efficient funds may give higher returns in spite of load.
E) Load Fund: -
It is one that does charge for entry or exit. It means the investors can enter the fund/scheme
at NAV and additional charges are payable on purchase or sale of unit.
F) No-load Fund: -
It is one that does not charge for entry or exit. It means the investors can enter the fund/scheme at
NAV and no additional charges are payable on purchase or sale of unit.
G) Tax exempt Vs Non-tax exempt: -
Generally, when a fund invests in tax-exempt securities, it is called a tax-exempt fund. In
India after the 1999 Union Government Budget, all of the dividend income received from any of

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the mutual funds is tax-free in the hands of the investors. However, funds other than Equity
Funds have to pay a distribution tax, before distributing income to investors. In other words,
equity mutual fund schemes are tax-exempt investment avenues, while other funds are taxable
for distributable income.
H) Debt Funds: -
They aim to provide safety of principal and regular (monthly, quarterly or semiannually) income
by investing in bonds, corporate debentures and other fixed income instruments. The AMC in
this case will also be guided by ratings given to the issuer of debt by credit rating agencies.
Wherever a debt instrument is not rated, specific approval of the board of the AMC is required.
Since most of corporate debt is illiquid, the fund tries to provide liquidity by investing in debt of
varying maturity.
I) Equity Funds: -
They are also known as growth funds. They focus on stocks that may not pay a regular dividend
but have potential for large capital gains. They promise pure capital appreciation with equity
shares. They buy shares in companies with high potential for growth (some of which might not
pay dividends). The NAV of such a fund will tend to be erratic, since these so-called growth
shares experience high price volatility. They also make quick profits by investing in small cap
shares and by investing in initial public offerings of small companies. However, growth strategy
may differ from one fund to another.
J) Balanced Funds: -
The idea is to get the best of both the world's equity shares and debt. These are also known as
hybrid funds. Investing in equities is supposed to bring home capital appreciation, while that in
fixed income is to impart stability and assure income for distribution. The proportion of the two
asset classes depends on the fund managers' preference for risk against return. But because the
investments are highly diversified, investors reduce their market risk. Normally about 50 to 65
per cent of a portfolio's assets are invested in equity shares.

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2.11. HOW MUTUAL FUNDS CAN EARN MONEY?

A mutual fund can earn money in three different ways.
➢ Dividend Payments: -
A fund may earn income in the form of dividends and interest on the securities in its
portfolio. The fund then pays its shareholders nearly all of the income (minus disclosed
expenses) it has earned in the form of dividends.
➢ Capital Gains Distributions: -
They are paid from any profits the fund realizes from selling investments. The price of
the securities a fund owns may, increase. When a fund sells a security that has increased in price,
the fund has a capital gain. At the end of the year, most funds distribute these capital gains
DISTRIBUTIONS (minus any capital losses) to investors.
➢ Increased NAV: -
If the market value of a fund's portfolio increases after deduction of expenses and
liabilities, then the value (NAV) of the fund and its shares increases. The higher NAV reflects
the higher value of your investment.
With respect to dividend payments and capital gains distributions, funds usually will give
a choice: the fund can send a check or other form of payment, or the dividends or distributions
reinvested in the fund to buy more shares (often without paying an additional sales load.

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CHAPTER - III

INTRODUCTIO OF COMPANY

3.1. ABOUT THE COMPANY: -

The word "NJ" stands, N for Neeraj Choksi and J for Jignesh Desai the founder directors
of NJ India Invest. Seeing the growing scope of the financial service sector these two dynamic
young men, after completing their education, started their career with this sector. Both of them
decided to jump into the same field and came out with the dynamic concept of NJ Capital stock,
which is known as NJ India Invest now.
This business was started in the year 1994; it was the period when private companies
were entering the field of financial services. This was the time when NJ India Invest evolved as a
client focused need-based investment advisory firm. NJ India Invest has achieved expertise in
need-based investment of clients.
At NJ India Invest we regard Mutual Fund as one of the best investment avenues
available to satisfy any kind of investment need. NJ India Invest has a very well-trained men
power to meet the need of the clients and market. With very well qualified work force we have
gained expertise in analyzing Mutual Fund schemes and we even have achieved expertise in
carrying out In-depth study on various parameters of these different Mutual Fund schemes.
NJ India Invest is a company, which is evolved in this business from past twenty years as
a client focused need-based investment advisory firm. It has developed its own IT industry
known as Fin logic India Pvt. Ltd. Le. Technology to support clients as well as its employees in
their daily routine work.

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• Built On Trust: -
An evolving, emerging & enterprising group with its roots in the financial services sector
and today expanding into newer horizons with great passion. The vision of the group is to be
leaders in businesses driven by customer satisfaction, commitment to excellence and passion for
continued value creation for all stakeholders. This vision has helped us grow and build the trust
of our customers and associates which is at the comer’s tone of everything we do. Trust is also at
the heart of our success and the driver for passion for our success.
NJ Group is a leading player in the Indian financial services industry known for its strong
distribution capabilities. The journey of NJ began in 1994 with the establishment of NJ India
Invest Pvt. Ltd., the flagship company, to cater to investor needs in the financial services
industry. Today, the NJ Wealth Distributor Network, earlier known as the NJ Funds Network,
started in 2003 is among the largest networks of financial products distributor in India. Over the
years, NJ Group has diversified into other businesses and today has the presence in businesses
ranging from financial products distributor network, asset management, real estate, insurance
broking, training & development and technology. Our rich experience in financial services,
combined with executional capabilities and strong process & system orientation, has enabled us
to shape a rising growth trajectory in our businesses.
NJ Group is based out of Surat in Gujarat (India) and has presence in 94 locations in
India and has over 1,100+ employees.
• Vision: -
To be the leader in our field of business through.
1] Total Customer Satisfaction.
2] Commitment to Excellence
3] Determination to Succeed with strict adherence to compliance.
4] Successful Wealth Creation of our Customers
• Mission: -
Ensure creation of the desired value for our customers, employees and associates, through
constant improvement, innovation and commitment to service & quality. To provide solutions
which mee expectations and maintain high professional & ethical standards along with the
adherence to the service commitment.
NJ has various part and it is known for that:
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NJ India Invest has two broad distinct divisions of business as follows

3.2. NJ FUNDS NETWORK: -
NJ Funds Network, started in 2003, is a dedicated channel for providing independent financial
advisors or IFAs with a complete business platform for the strengthening and development of
their advisory practice. NJ offers advisors under its network will all the products; support and
services
that enables them add considerable value to their business, emerge as a 'new age professional
financial advisor' and compete confidently in the industry. NJ Funds Network is a unique, first
time in India concept that offers such comprehensive business platform to independent financial
advisors.
• NJ Wealth Advisors: -
Established as a distinct entity, NJ Wealth Advisors Pvt. Ltd. seeks to offer
comprehensive financial planning and portfolio advisory services to premium clients. With NJ
Wealth Advisors, NJ seeks to leverage the strong financial advisory and portfolio management
skills gained in over a decade of experience in the industry. NJ Wealth Advisors offers its clients
with quality, unbiased, need-based advisory services & investment solutions.
• NJ Gurukul: -
This sporadic growth in terms of need of performers in financial advisory
services has led to the crunch of available performers. Though lots of youngsters are
getting into financial advisory services, but the greatest challenge is of RIGHT
SELLING, for which adequate Training is a prerequisite. Advisory function demands
updated knowledge, backed up by honed skills to fetch effective business. Building long
term relationship with clients depends upon possessing clear edge over others in the field.
Hence continuous people development has an important role in building this fraternity.
• Technology: -
Technology has traditionally been NJ's key strength. Our offering on the technological
front is unmatched, vibrant, and comprehensive in nature. Our focus & commitment on
technology can be gauged from the fact that we have set-up distinct entity with a very strong,
talented work-force for the sole purpose of providing the best to NJ in terms of technology and
support. Technologies (India) Pvt. Ltd. does all the development & support work in-house on a

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continuous basis. It has successfully developed & implemented a powerful support system for
the mutual fund distribution business at NJ with a provision for integrating the same with other
investment products as well as the financial accounting system.
• NJ Wealth Advisors: -
Established as a distinct entity, NJ Wealth Advisors Pvt. Ltd. seeks to offer
comprehensive financial planning and portfolio advisory services to premium clients. With NJ
Wealth Advisors, NJ seeks to leverage the strong financial advisory and portfolio management
skills gained in over a decade of experience in the industry. NJ Wealth Advisors offers its clients
with quality, unbiased, need-based advisory services & investment solutions.
3.3. COMPANY PROFILE: -
• NJ Wealth - Financial Products Distributors Network: -
NJ Wealth Financial Products Distributors Network is one of India's leading and most
successful networks of distributors in the financial services industry.
Started in 2003, the NJ Wealth seeks to reach out to the common man and extend the
opportunity to create wealth through an empowered network of financial product distributors- the
NJ Wealth Partners. To its Partners, NJ Wealth provides a full service, comprehensive business
platform with end-to-end solutions critical for success in financial products distribution practice.
With it's compelling set of offerings covering every area of distribution practice, NJ Wealth has
managed to successfully transform the lives of many small and big distributors.
To the common man, NJ Wealth offers a comprehensive wealth management platform
with a wide choice of financial and non-financial products. Backed by high levels of excellence
in operational and service standards, NJ Wealth offers customers of its Partners with solutions
that truly makes a difference.
Driven by the strong vision of 'Creating Wealth and Transforming Lives', NJ Wealth's
constant advisers is to build on the ideas that are meaningful & effective in scaling business
challenges, seizing available opportunities and serving the interests of the customer.
The NJ Wealth family has grown steadily and today it has over 21,000+ NJ Wealth
Partners, spread across 94 branches in 21 states in India with over 9,70,000+ investors and over
INR 21,500+ crores+ of mutual fund assets under advice. Irrespective of the numbers though, it
is trust in us which fuels the passion for creating solutions with excellence that touch many lives,
day after day. The key offering for the NJ wealth Distributor platform is briefly mention here,
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• Product basket: -
1] Domestic mutual funds (all AMC’s).
2] Capital Markets - direct equity and ETFs
3] Fixed Deposits of companies
4] PMS products (Third party & NJ)
5] Government/ RBI/ Infrastructure bonds, Residential & commercial properties
• Partner Services: -
1] Dedicated Relationship Manager
2] Marketing & Sales support
3] Research support
4]Training & Education support
5] Dedicated Customer Care/Query management support
6] Technological support, including online business / Partners Desk with CRM & Employee
Management modules
• Customer Services: -
Online family "Client Desk" enabling single portfolio view of 'entire wealth portfolio Trading &
De-mat Account with online transacting & call-&-trade service in mutual funds, direct equity &
ETF.
NJ has created it's 360degree platform for financial advisors.

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With this philosophy, we try to offer all possible products, services and support which an
Advisor would need in his business.
The support functions are generally in the following areas.
➢ Business Planning and Strategy
➢ Training and Development – Self and of employees
➢ Products and Service Offerings
➢ Business Branding
➢ Marketing
➢ Sales and Development
➢ Technology
➢ Advisors Resources - Tools, Calculators, etc.
➢ Research
➢ Communications
3.4. TRAINING & DEVELOPMENT: -
The NJ Gurukul is a venture aimed at providing valuable training & education support to
the young, emerging talent pool in India. Started in year 2008, NJ Gurukul today offers a very
wide range of training programs across India in all major cities. NJ Gurukul is about a vision that
aspires to nurture the young talent in India and to transform them into individuals with
knowledge & skills for employment and enterprise. With special focus on the financial advisor’s
community, NJ Gurukul today, is a leading provider of training programs in the financial
services industry. NJ Gurukul offers a wide range of training programs by way of part/full time
classroom sessions being conducted at multiple locations across India. NJ Gurukul has an
institutionalized, process driven approach to training with focus on delivering uniformity in
quality & content.
The NJ Gurukul has a Board of Trainers with over 35 well qualified, professional trainers
empaneled across India for delivering training programs. Within a short time, NJ Gurukul has
trained over 35,000 participants in over 80 locations across India. NJ Gurukul is an authorized
Education Provider (EP) with FPSB India to deliver training for the prestigious Certified
Financial Planner CFPCM Certification. NJ Gurukul is also amongst the largest trainers of
Mutual Fund Distributors in India.

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3.5. SERVICES PROVIDED TO CLIENT: -

As NJ Wealth Advisor’s Global Private Client, you get comprehensive set of services that
ensure you stay informed, insightful, in command, of your investments at all times.

• Comprehensive Financial Planning: -

We all have many responsibilities and goals in our lives. We have dreams and aspirations for
a better future. But quite often we are not sure as to how we will fulfil these goals and
aspirations. Life changes over time. We may never be sure what today holds for us tomorrow.
What if something goes wrong? How do we make sure that we get what we wish?
A comprehensive Financial Plan is what you need. At NJ Wealth Advisors we offer you with
Comprehensive Financial Planning solutions which would involve.
➢ A detailed study of your goals
➢ Preparation of a comprehensive Financial Plan
➢ Monitoring of the Financial Plan on an on-going basis
At NJ Wealth Advisors we offer you with comprehensive Financial Planning Services under
the product – Life Vista.

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3.6. QUALITY PORTFOLIO ADVISORY: -

Making money is easy. Managing money is difficult. And managing money in today’s
complex financial markets with multiple products on an ongoing basis becomes even more
difficult.
As investors we often may feel the lack of time and energy to undertake monitoring and
managing of our investments in multiple avenues. This requires both dedicated efforts and skills
in portfolio management.
At NJ Wealth Advisors we realise the need for quality, unbiased portfolio advisory
services. At NJ we would aim to manage your portfolio with a superior, time tested and much
effective way of Asset Allocation keeping in mind your risk profile.
At NJ Wealth Advisors we offer you with quality Portfolio Advisory Services under the product
– Asset Vista.
• Quality online Wealth Account: -
As a premium client you would have access to one of the best online investment accounts
that offer comprehensive reports, many of which are unique in nature and give valuable insights
on our investments
Our online Wealth Account covers almost all the investment avenues that you may have:
➢ Mutual Funds – All AMCs, All Schemes

➢ Direct Equity

➢ Life Insurance

➢ Physical Assets – Gold and Property

➢ Private Equity – Business

➢ Debt Products

➢ Bank Deposits and Company Deposits

➢ RBI / Infrastructure Bonds
➢ Postal Savings – KVP, MIS, NSC
➢ Debentures
➢ Small Savings – PPF, NSS

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You would have access to Consolidated Net Asset Reports which would give you a single
view of all your investments into different avenues as given above. Further, within each of the
Asset class we have many more reports and utilities. Some of the reports covered are.

3.7. CONSOLIDATED: -
Consolidated Asset Allocation, Consolidated Net Asset, Interest Income, Profit & Loss
• Mutual Funds: -
Valuation, Transaction, Profit & Loss, Performance, Portfolio reports like - AMC / Sector
/ Equity / Credit / Debt Exposure, Weighted Average Maturity, Dividend history, etc.
• Direct Equity: -
De-mat accounts, Transaction, Valuation, Profit & Loss
• Life Insurance: -
Policy Report, Premium Reminder, Cash Flow
• Debt: -
Transaction, Interest Income, Maturity reports for different Asset
• Dedicated team: -
At NJ Wealth Advisors, we work in a team concept to provide quality, effective and
timely service to our clients. The team is designed keeping you at the beginning or the end of the
flow as the originator and the end receiver of any request or service.
The team handling you consists of the Relationship Manager and the Account Manager
who would be in direct touch with you. This would be supported by the Centralized Research
Team, the Chief Portfolio Manager and the Service Team. All the important investment
decisions and/or plans recommended to you are actually prepared and /or approved by the
Chief Portfolio Manager with inputs from the Research Team. The structure ensures that all the
Plans and recommendations that you receive are unbiased, based on true research & detailed
study, and suited to your needs.

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3.8. QUALITY CUSTOMER SERVICE: -

NJ realizes the true importance of quality customer service. The service commitments are
to guide the actions taken at NJ. Clearly stated, customers can freely communicate any such
actions/events wherein they feel that the following commitments have been breached. At NJ we
desire to honor our commitments at all points of time and to all customers without any bias.

• Quality Service: -

➢ You will receive regular portfolio reports in hard copies to serve as record

➢ All records are maintained for the plans and recommendations and minutes of all the
meetings are kept.
➢ Dedicated Account Manager directly oversees the operational support to you Quality
Advisory.

➢ True, unbiased recommendations.

➢ Each plan is unique in nature to suit your needs and profile.
➢ Defined Process followed in investment consultancy / portfolio management.
➢ All the plans are prepared and approved in line with the set process by Chief Portfolio
Manager with inputs from the Research Team.

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CHAPTER - IV

• INTRODUCTION: -

As per the objectives the present researcher has been analyzed various mutual schemes.
To study some of the mutual fund schemes and analysis them. In this study selected five listed
companies for identifying and analyzing mutual fund schemes on the basis of case study. It has
been used various statistical tools and techniques for analyzing the data and also draw the
graphical presentation for fulfilling the objectives. The detailed analysis and interpretation are as
follows:
4.1. ICICI PRUDENTIAL MUTUAL FUND: -
ICICI Prudential Asset Management Company Ltd. is a leading asset management
company (AMC) in the country focused on bridging the gap between savings & investments and
creating long term wealth for investors through a range of simple and relevant investment
solutions.
The AMC is a joint venture between ICICI Bank, a well-known and trusted name is
financial services in India and Prudential Plc, on of UK’s largest players in the financial services
sectors. Throughout these years of the joint venture, the company has forged a position of pre-
eminence in the Indian Mutual Fund industry.
The AMC manages significant Assets under Management (AUM) in the mutual fund
segment. The AMC also caters to portfolio Management Services for investors, spread across the
country, along with International Advisory Mandates for clients across international markets in
asset classes like Debt, Equity and Real Estate.
The AMC has witnessed substantial growth in scale; from 2 locations and 6 employees at
the inception of the joint venture in 1998, to a current strength of 2431 employees with a reach
across over 350 locations reaching out to an investor base of 7.5 million investors (as on March
31, 2022). The company’s growth momentum has been exponential and it has always focused on
increasing accessibility for its investors.
Driven by an entirely investor centric approach, the organization today id a suitable mix
of investment expertise, resource bandwidth and process orientation. The AMC endeavors to
simplify its investor’s journey to meet their financial goals, and give good investor experience
through innovation, consistency and sustained risk adjusted performance.

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• Categorization of ICICI Prudential Mutual Fund Scheme: -

Table No. 4.1
ICICI Prudential Blue-chip ICICI Prudential Liquid
Years Fund (Returns on %) Fund (Returns on %)
5 years 11.17 % 5.33 %
3 years 16.64 % 4.23 %
1 years 4.54 % 5.11 %
(Source: Secondary data)

Chart No. 4.1

18.00%

16.00%

14.00%

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%
5 years 3 years 1 years

ICICI Prudential Blue-chip Fund ICICI Prudential Liquid Fund

o Interpretation: -

ICICI Prudential Blue-chip Fund has provided 11.17% return over a period of 5 years,
16.64% return over a period of 3 years and 04.54% return over a period of 1 year. On the other
hand, ICICI Prudential Liquid Fund has provided 05.33% return over a period of 5 years,
04.23% return over a period of 3 years and 05.11% return over a period of 1 year.

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4.2. CANARA ROBECO MUTUAL FUND: -

We at Canara ROBECO, are India’s second oldest asset manager, in existence since
1993, when we were known as Canara bank Mutual Fund. In 2007, Canara Bank partnered with
ROBECO group by way of a joint venture and the mutual fund was renamed as Canara
ROBECO Mutual Fund. This brings together, Canara Bank’s extensive experience in the Indian
market along with ROBECO group’s global asset management experience.
Canara Bank is one of the largest state-owned banks in India, over 113 years of banking
experience, ranking 7. The bank has over 89+ million customers & 10,855+ branches. Top
Banks in 2017 by Dun & Bradstreet.
ROBECO group was founded in 1929 in Rotterdam, is a pure play asset manager.
ROBECO group has an active investment style and is known as a global leader in sustainable
investing. With a presence in 15 countries and over 873 employees, ROBECO group has key
investment centres located in Rotterdam, Zurich, Boston, Chicago, Hong Kong and Mumbai.
Canara ROBECO Mutual Fund is the second oldest Mutual Fund in India, established in
December 1987 as Canara bank Mutual Fund. Subsequently, in 2007, Canara Bank partnered
with ROBECO (now a part of ORIX Corporation, Japan) and the mutual fund was renamed as
Canara ROBECO Mutual Fund. Since then, it has consistently been one of the fastest growing
mutual funds in India in terms of AUM. Our solutions offer a range of investment options,
including diversified and thematic equity schemes, hybrid and monthly income funds and a wide
range of debt and treasury products.

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• Categorization Of CANARA ROBECO Mutual Fund Scheme: -

Table No. 4.3
Years Canara Equity Tax Saver Canara Corporate Bond
Fund (Returns on %) Fund (Returns on %)
5 years 14.48 % 6.71 %

3 years 19.10 % 5.63 %

1 years -6.90 % 3.76 %

(Source: Secondary data)

Chart No. 4.2

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%
5 years 3 years 1 years

-5.00%

-10.00%

Canara Equity Tax Saver Fund Canara Corporate Bond Fund

o Interpretation: -

Canara Equity Tax Saver Fund has given an average return of 14.48% over the past 5 years,
while Canara Corporate Bond Fund has given an average return of 6.71% over the same period.
Over the past 3 years, Canara Equity Tax Saver Fund has given an average return of 19.10%,
while Canara Corporate Bond Fund has given an average return of 5.63%. Over the past 1 year,
Canara Equity Tax Saver Fund has given a negative return of -06.90%, while Canara Corporate
Bond Fund has given an average return of 3.76%.

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4.3. HDFC MUTUAL FUND: -

We are one of India’s largest mutual fund managers with ₹4.00 trillion in assets under
management. Started in 1999, we were set up as a joint venture between Housing Development
Finance Corporation Limited (“HDFC”) and ABRDN Investment Management Limited
(erstwhile known as Standard Life Investments Limited). During FY18-19 we carried out an
initial public offering, and became a publicly listed company in August 2018. Our principal
shareholders are HDFC and ABRDN Investment Management Limited which own 52.6% and
10.2% stake, respectively. HDFC Asset Management Company (“HDFC AMC”) is the
investment manager to the schemes of HDFC Mutual Fund (“HDFC MF”).
We offer a comprehensive suite of savings and investment products across asset classes,
which provide income and wealth creation opportunities to our large retail and institutional
customer base of 10.2 million live accounts. We have a dominant position in equity investments,
with one of the highest market shares in actively managed equity-oriented funds. Our strengths
lie in delivering simple and accessible investment products for the average Indian household. We
are one of the most preferred choices for retail investors, with one of the highest market shares in
assets from individual investors. Our offering of systematic transactions further enhances our
appeal to individual customers looking to invest periodically in a disciplined and risk-mitigating
manner. Our schemes have weathered multiple market cycles and carry track records of up to 27
years. We work with diverse sets of distribution partners which helps us expand our reach.
We currently have over 80 thousand distribution partners which include mutual fund
distributors, national distributors and banks. We serve our customers and distribution partners in
over 200 cities through our network of 228 branches and 1,248 employees. Our highly stable
Management has steered the company since its inception through the ever-evolving industry. Our
consistent position as one of India’s leading asset management companies is driven by our
comprehensive investment philosophy, process and risk management. Our 30-member
investment team is highly experienced and competent with a track record of performance,
stability and a deep understanding of businesses.
We also provide portfolio management and segregated account services, including
discretionary, non-discretionary and advisory services, to high-net-worth individuals (“HNIs”),
family offices, domestic corporates, trusts, provident funds and domestic and global institutions.

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• Categorization Of HDFC Mutual Fund Scheme: -

Table No. 4.3
Years HDFC Retirement Saving HDFC Credit Risk Debt
Fund (Returns on %) Fund (Returns on %)
5 years 13.66 % 7.71 %
3 years 22.79 % 7.58 %
1 years 9.30 % 4.65 %
(Source: Secondary data)

Chart No. 4.3

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%
5 years 3 years 1 years

HDFC Retirement Saving Fund HDFC Credit Risk Debt Fund

o Interpretation: -

The HDFC Retirement Saving Fund has provided an average annual return of 13.66%
over the past 5 years, while the HDFC Credit Risk Debt Fund has provided an average annual
return of 7.71% over the same period. Over the past 3 years, the HDFC Retirement Saving Fund
has provided an average annual return of 22.79%, while the HDFC Credit Risk Debt Fund has
provided an average annual return of 7.58%. Finally, over the past 1 year, the HDFC Retirement
Saving Fund has provided an average annual return of 9.30%, while the HDFC Credit Risk Debt
Fund has provided an average annual return of 4.65%.

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4.4. KOTAK MUTUAL FUNDS: -

Kotak Mahindra Asset Management Company Limited (KMAMC) is a public limited
company registered under the Companies Act, 1956 on August 2, 1994. The company is the asse
manager of Kotak Mahindra Mutual Fund (KMMF) and a wholly and a subsidiary of Kotak
Mahindra Bank Limited (KMBL).
Kotak Mutual Fund began its operations back in December 1998. It was the first AMC to
offer a dedicated gilt fund for investing solely in Government securities.
It provides mutual fund and portfolio management services under SEBI (Mutual Funds)
Regulations, 1996 and SEBI (Portfolio Manager) Regulations, 1993.KMAMC also offers
pension fund management services through its subsidiary, the Kotak Mahindra Pension Fund
Limited.
Currently, the company offers around 261 schemes catering to the variable risk appetite
of investors. It primarily invests in AAA and AA rated companies and possesses a substantial
value of assets under management (AUM). KMAMC also provides customers with the option to
avail income tax benefits under Section 80C.
As of 31st Jan 2021, the asset under management of Kotak AMC is 284617.8 crore.
KMAMC has 86 branches spread over 82 cities in India. And has 25.9 lakh, unique
investors.

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• Categorization of Kotak Mutual Fund Scheme: -

Table No. 4.4
Years Kotak Blue-chip Find Kotak Gilt Investment PF
(Returns on %) & Trust Fund
(Returns on %)
5 years 11.19 % 8.20 %
3 years 15.71 % 6.89 %
1 years 2.51 % 3.86 %
(Source: Secondary data)

Chart No. 4.4

18.00%

16.00%

14.00%

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%
5 years 3 years 1 years

Kotak Blue-chip Find Kotak Gilt Investment PF & Trust Fund

o Interpretation: -

Kotak Blue-chip Fund has provided better returns over the past 5 years (11.19%)
compared to the Kotak Gilt Investment PF & Trust Fund (08.20%). Over the last 3 years, the
Kotak Blue-chip Fund has provided significantly higher returns (15.71%) than the Kotak Gilt
Investment PF & Trust Fund (06.89%). However, in the last year, the Kotak Gilt Investment PF
& Trust Fund has provided slightly higher returns (03.86%) than the Kotak Blue-chip Fund
(02.51%).

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4.5. SBI MUTUAL FUNDS: -

With 33 years of rich experience in fund management, we at SBI Funds Management
Ltd. (SBIFML) bring forward our expertise by consistently delivering value to our investors. We
have a strong and proud lineage that traces back to the State Bank of India (SBI) – India’s largest
bank. We are a joint Venture between SBI and AMUNDI (France), one of the world’s leading
fund management companies. A shareholder agreement in this regard has been entered on
April13,2011 between SBI & AMUNDI Assets Management.
Accordingly, SBI currently holds 63% stake in SDIFML and the 37% stake is held by
AMUNDI Asset Management through a wholly owned subsidiary, AMUNDI India Holding.
Initially this 37% holding was held by Society General Asset Management S.A (SGAM), a
subsidiary of Society General S.A (SG) which was transferred to AMUNDI June 2011 with due
approval of SEBI pursuant to SEBI (Mutual Funds) Regulations, 1996. AMUNDI Asset
Management shall provide strategic support to the company. SBI & AMUNDI Asset
management shall jointly develop the Company an asset management company of international
repute by adopting global best practices and maintaining international standards.

• Services: -
Investors are our priority. Our mission has been to establish Mutual Funds as a viable
investment option to the masses in the country. Working towards it, was developed innovative,
need-specific products and educated the investors about the added benefits of investing in capital
markets via Mutual Funds.
Todays, we have been actively managing our investors’ assets not through our investment
expertise in domestic mutual funds, but also offshore funds and portfolio management advisory
services for institutional investors.

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• Categorization Of SBI Mutual Fund Scheme: -

Table No.: - 4.5
Years SBI Contra Fund SBI Magnum Gilt Fund
(Returns on %) (Returns on %)
5 years 13.50 % 08.15 %
3 years 29.54 % 6.77 %
1 years 11.82 % 05.17 %
(Source: - Secondary data)

Chart No. 4.5

35.00%

30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%
5 years 3 years 1 years

SBI Contra Fund SBI Magnum Gilt Fund

o Interpretation: -

The SBI Contra Fund has shown a return of 13.50% over a five-year period, while the SBI
Magnum Gilt Fund has returned 8.15% over the same time period. Over three years, the SBI
Contra Fund has returned 29.54%, whereas the SBI Magnum Gilt Fund has returned 6.77%. For
one year, the SBI Contra Fund has returned 11.82%, while the SBI Magnum Gilt Fund has
returned 5.17%.

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CHAPTER – V

FINDINGS

➢ Canara Corporate Bond Fund has seen moderate returns over the past 5 years, with
returns of 6.71%. Over the past 3 years, returns have been slightly lower at 5.63%. In the
last year, it has seen a return of 3.76%. (Table No: - 4.2)
➢ The findings indicate that the HDFC Retirement Saving Fund has provided significantly
higher returns over the past 5 years and 3 years when compared to the HDFC Credit Risk
Debt Fund. However, over the past 1 year, the returns provided by the two funds are
much closer. The investor think about the debt schemes they are not having the risk
involve in the each and every scheme and the all schemes are open ended and growth in
nature.
(Table No: - 4.3)
➢ ICICI Prudential Blue-chip Fund has delivered higher returns in all time periods
compared to ICICI Prudential Liquid Fund. ICICI Prudential Blue-chip Fund has
delivered 11.17% returns in 5 years, 16.64% returns in 3 years, and 4.54% returns in 1
year. ICICI Prudential Liquid Fund has delivered 5.33% returns in 5 years, 4.23% returns
in 3 years, and 5.11% returns in 1 year. (Table No: - 4.1)
➢ It can be seen from the data that the Kotak Blue-chip Fund has outperformed the Kotak
Gilt Investment PF & Trust Fund in the last 5 years and 3 years. However, the returns on
the Kotak Gilt Investment PF & Trust Fund have been higher in the last 1 year.
(Table No: - 4.4)
➢ From the results, it can be seen that the SBI Contra Fund has outperformed the SBI
Magnum Gilt Fund in terms of returns over a five-year period, three-year period, and one
year period. (Table No: - 4.5)

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SUGGESTIONS
This study has given some suggestions for creating awareness about the mutual fund
investment and schemes so that mutual fund investors may get information that helps out in their
investment decision.
➢ Based on the findings, it is suggested that investors looking for higher returns in the long
term should invest in Canara Equity Tax Saver Fund. However, for short term, investors
should invest in Canara Corporate Bond Fund for better returns.
➢ Based on the above findings, it is suggested that investors looking to benefit from higher
returns over the long-term should invest in the HDFC Retirement Saving Fund, while
investors looking for a more conservative approach should invest in the HDFC Credit
Risk Debt Fund.
➢ Based on the analysis of the ICICI Prudential Mutual Fund Schemes, it is suggested that
investors should consider investing in the ICICI Prudential Blue-chip Fund to maximize
their returns over a long-term investment.
➢ Based on the data, it can be suggested that investors who are looking for a long-term
investment should invest in Kotak Blue-chip Fund, while investors looking for short-term
gains should invest in Kotak Gilt Investment PF & Trust Fund.
➢ Based on the results, it can be suggested that investors should consider investing in the
SBI Contra Fund as it has provided higher returns than the SBI Magnum Gilt Fund over
the given time periods.

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CONCLUSION
The conclusion of the study that the Mutual Funds as an investment option have
displayed growth potential market and performed much better than the traditional market options
in the long term helps investor to think about that investment. It is the importance that investors
do not make a rash decision simply by looking at the return figures generated by an individual
fund, they should compare funds based on the risk and return analysis and find out which fund is
giving better returns equivalent to the risk taken.
The analysis helps investors make a correct decision looking at facts based on numbers
instead of just going by their gut feeling. Also compared to the traditional options, mutual funds
provide a more professional approach towards investment and some amount of diversification.
A thorough analysis clubbed with timely investments might prove Mutual Funds to be an
excellent form of investment. The comparisons of all equity and debt fund schemes the all
schemes are having their own perspective.
The investor who thinks about the return without risk so they can invest in debt schemes
in different duration or period of time. The investor who thinks about the more gain from the
market and also, they have taken risk for the highly or better return in future. The risk and return
are on the basis of their AUM and NAV value of the particular schemes.
The mutual fund industry in India has seen tremendous growth in recent years and is
poised to become one of the world’s largest markets. The Indian mutual fund industry has seen
tremendous growth due to a variety of factors including increasing awareness about mutual
funds, improving economic conditions, and greater access to financial services. As a result, the
number of mutual fund investors has grown significantly and the mutual fund industry is
expected to continue to grow in the coming years. Despite this, the industry faces a number of
challenges including lack of transparency and inadequate regulation. In order to ensure the long-
term sustainability of the industry, it is essential that the government and regulators take steps to
increase transparency and improve regulation.

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CHAPTER - VI
BIBLIOGRAPHY

➢ Book Reference: -
1) Mutual Funds in India Challenges and Opportunities, Anant Sundararajan, SAGE
Publications, India, 2011.
2) A Guide to Investment and Regulation, by Madhav Rajan (2009).
3) Mutual Funds Theory and Practice, K.R. Shanmugam, PHI Learning Pvt Ltd, 2009.
4) Mutual Funds: A Guide to Intelligent Investing in India, Parag Parikh, Penguin India,
2018.

➢ News Papers: -
1) Economic Times
2) Business Standard
3) The Financial Express
4) Business Line

➢ Website: -
1) www.njindiainvest.com
2) www.mutualfundindia.com
3) www.moneycontrol.com
4) www.hdfcfund.com
5) www.icicipruamc.com
6) www.canararobeco.com
7) www.kotakmf.com
8) www.sbimf.com

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