ESP IJAST

ESP International Journal of Advancements in Science & Technology

ISSN: 2583-9233 / Volume 2 Issue 2 April 2024 / Page No: 11–15
Paper Id: IJAST-V2I2P103 / Doi: 10.56472/25839233/IJAST-V2I2P103
Original Article
Analysis of Bluechip Mutual Fund Schemes using ANOVA and
T-Test
Dr. A. Madhavi1, Dr. Chinnamamba Cheepuri2
1
KES’ B.K. Shroff College of Arts and M.H Shroff College of Commerce, Mumbai, India.
2
Godavari Institute of Engineering and Technology, Autonomous, Rajahmundry, India.
Received Date: 15 February 2024 Revised Date: 16 March 2024 Accepted Date: 18 April 2024

Abstract: Mutual funds have become a vital source of capital and have played a significant part in the growth of India's
financial market. Mutual funds also offer diverse portfolio management, risk reduction, and return maximization. The
best investing option for the average person is a mutual fund scheme, which offers a professionally managed stock
market, minimal risk, and maximum profits. In this study we tried to find the returns of various blue chip mutual fund
schemes using monthly Net Asset Values (NAVs). And also applied statistical techniques to know the performance of
schemes, so that it helps the investor to take decision on best investment scheme.

Keywords: Mutual Funds, NAV, Returns, ANOVA, T-test.

I. INTRODUCTION
As defined by the Securities and Exchange Board of India (SEBI) Regulations, 1993, a mutual fund is "a fund
established in the form of a trust by sponsor to raise money by the trustees through the sale of units to the public under one
or more schemes for investing in securities in accordance with the regulations" (SEBI, 1993). Furthermore, by spreading
their investments across a variety of securities through a technique called as diversification, mutual funds have grown in
popularity and success as a means for investors to participate in the financial markets in a straightforward, low-cost manner
while lowering risk. In an individual's investing plan, it could play a significant role. Through investments, they offer the
chance for capital growth and income.

Mutual funds have been the go-to long-term investment plans for many investors over the past many years and as
the Indian economy and capital markets have expanded in recent years, so number of investors is increasing every year. As
the Indian government launched economic reforms in the areas of trade, industry, and commerce to bring the Indian
economy into line with the global economy, the capital market in India saw substantial changes. Innovative new instruments
and institutions have emerged as new financial intermediaries. The demand for mutual funds and their range of operations
has increased with a focus on boosting investment deployment through markets and raising domestic savings. Consequently,
the role that mutual funds have played in the restructuring of the Indian economy.

Mutual Fund schemes are divided into 1) Equity/ Growth funds 2) Income/Bond/Fixed Income Funds 3) Hybrid Funds
4) Open Ended schemes 5) Closed Ended schemes.

II. REVIEW OF LITERATURE

Dr. Amir Rehmani(2022), Analysed the performance of various mutual Fund schemes selected from April 2010 to
March 2020 against risk free rate and market index. Researcher has applied the risk adjusted measures to find the
performance of various schemes. He found that sample funds performed out rightly well and fund managers played very
important role in selecting funds.

Dr. Amit Gupta (2020), analysed the investor’s perceptions towards risk and expectations in mutual funds.
Dr.Chirappa I B (2023), examined the performance of different mutual fund schemes and compared with SBI domestic term
deposit rates and concluded that most of the mutual fund schemes are not able to produce returns in comparison with SBI
domestic term deposits.

Dr. D. Devarajan and R. Poornima (2018), discussed about various mutual fund schemes, benefits, tax, risk and
rewards which are available to the public in India. Komal B. Sharma (2020), studied debt mutual fund schemes and also
examined the risk and return of 5 debt mutual funds and researcher observed that out of 5 mutual funds 3 are performed
well and 2 funds have not performed well.
Krishna Samaddar (2018), studied 10 equity mutual fund schemes from April 2017 to March 2018 using performance
measures and concluded that all sample schemes produced higher and better average returns than the market returns. And

This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/2.0/)

 Dr. A. Madhavi & Dr. Chinnamamba Cheepuri / ESP IJAST 2(2), 11-15, 2024

found that HDFC small cap fund is better than all other sample fund schemes taken for the study.

B. Sharmila and Dr. R. Khanchana, analyzed various mutual equity funds schemes to know best alternative from the
galaxy of investment alternatives. Time series analysis is applied to get an idea of the market conditions and best alternative.

Shivangi Agarwal, Nawazish Mirza (2017), assessed the performance of 100 mutual fund schemes which are available
in India by measuring Sharpe ratio, Treynor Ratio, Jensen’s Alpha and Value at risk. Researcher selected the period from
January 2013 to June 2016 and said 90% of the schemes have performed better when compared to their bench marks.

Dr. K. Mahesh and Sujatha S.L. (2020), studied yield of each scheme and risk involved in it and also found the
variation in prices with respect to NIFTY index and revealed that, construction and metal product sectors stand in top five
mutual fund schemes.

Dr.Naliniprava Tripathy (2004), studied the performance of 31 equity linked savings schemes of India by applying
performance evaluation measures namely, Rate of Return Measure, Treynor Measure, Sharpe Measure, Jensen Measure,
Sharpe Differential Return and Fama’s Decomposition Measure. Researcher found that only one fund has linear relationship
between return and risk. 13 mutual fund schemes are highly fluctuated as per returns are concerned. Out of 31 schemes 9
schemes performed very well and gave high returns.

A. Objectives:
1. To find the returns of various mutual fund schemes
2. To find best scheme of the mutual funds. Assuming that the Net Asset Values (NAVs) of selected samples are same
and also asses the best scheme out of selected sample schemes.

B. Data Collection:
Secondary data was collected from the Association of Mutual Funds India (AMFI) website. Net Asset Value (NAV) of
various mutual fund schemes from March 2022 to April 2023 was collected. The collected data was analyzed using statistical
techniques.

III. METHODOLOGY
To analyse the data, monthly returns and monthly average returns are calculated using monthly NAVs. ANOVA test was
conducted to know the significant difference between various mutual fund schemes. t- test was applied to find the best
scheme of the collected samples. The outcomes of the analysis are presented in the following sections

A. Summary:
Table 1: NAVs of the sample mutual funds from 1st March 2022 to 30th April 2023
Date Axis Bank of India Canara ICICI Kotak SBI Blue Chip Sundaram
Bluechi p Bluechip RobecoBluec hip Prudentia l Bluechip Fund- Large Cap
Fund Fund Regular Equity Fund - Bluechip Fund Fund - Regular Plan Fund
- Plan Regular Plan - - Growth Growth Growth
Regular Growth Growth
Plan -
Growth
01-04-2022 45.22 10.68 41.12 66.23 372.636 60.752 14.8339
02-05-2022 42.92 10.17 39.64 64.08 360.093 59.2581 14.3032
01-06-2022 41.02 9.72 38.59 62.75 351.89 57.7536 13.9089
01-07-2022 39.18 9.33 36.95 60.33 337.056 55.7778 13.3522
01-08-2022 43.53 10.39 40.49 65.74 368.502 61.0277 14.6179
01-09-2022 44.33 10.59 41.17 66.8 376.545 62.2819 14.883
03-10-2022 42.81 10.31 39.83 64.95 362.506 59.9661 14.4233
01-11-2022 44.77 10.96 42.55 69.75 385.566 64.0818 15.4466
01-12-2023 45.28 11.11 43.46 71.96 396.148 65.7815 15.9757
02-01-2023 43.77 10.74 42.13 70.07 385.332 63.8927 15.4831
01-02-2023 42.09 10.27 41.09 68.24 376.722 62.8009 14.887
01-03-2023 41.91 10.21 40.89 67.76 375.191 62.3665 14.7552

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Samples collected from Association of Mutual Funds India (AMFI) website:

Analysis of variance (ANOVA) was performed to determine the significant difference between the selected schemes.
The null hypothesis (H0) was considered as collected sample schemes are same in their returns against the alternative
hypothesis (H1) was contradict to the null hypothesis. The descriptive statistics and results of the ANOVA was shown in the
following table:2 and table:3
Table 2: Descriptive Statistics Result of ANOVA
Descriptive Statistics
Schemes Count Sum Average Variance
Axis Bluechip Fund - Regular Plan – 12 516.83 43.06917 3.31059
Growth
Bank Of India Bluechip Fund Regular Plan 12 124.48 10.37333 0.25097
Growth
Canara Robeco Blue Chip Equity Fund - 12 487.91 40.65917 3.099063
Regular Plan - Growth Option
ICICI Prudential Bluechip Fund - Growth 12 798.66 66.555 10.80261
Kotak Bluechip Fund – Growth 12 4448.187 370.6823 258.8411
Sbi Blue Chip Fund-Regular Plan Growth 12 735.7406 61.31172 8.026517
Sundaram Large Cap Fund (Formerly 12 176.87 14.73917 0.50475
Known as Sundaram Blue Chip Fund)

Table 3: Analysis of Variance (ANOVA)

Analysis of Variance (ANOVA)
Source of Variation SS df MS F P-Value F Crit
Between Schemes 1160686 6 193447.6 4754.087 9.11E- 2.218817
97
Within Schemes 3133.192 77 40.6908
Total 1163819 83

From the above ANOVA table p-value is much more less than 0.05 (0.000000<0.05). Therefore, null hypothesis was
rejected. i.e., there is a significant difference between the various schemes.
Table 4: Monthly Returns of Mutual Fund
Date Axis Bank of India Canara ICICI Kotak Bluechip SBI Sundaram
Bluechip Bluechip Fund RobecoBluechip Prudential Fund - Growth Blue Chip Large Cap
Fund - Regular Plan Equity Fund - Bluechip Fund- Fund
Regular Plan Growth Regular Plan - Fund - Regular
- Growth Growth Option Growth Plan
Growth
01-04-2022 - - - - - - -
02-05-2022 -5.09 -4.78 -3.6 -3.25 -3.37 -2.46 -3.58
01-06-2022 -4.43 -4.42 -2.65 -2.08 -2.28 -2.54 -2.76
01-07-2022 -4.49 -4.01 -4.25 -3.86 -4.22 -3.42 -4
01-08-2022 11.1 11.36 9.58 8.97 9.33 9.41 9.48
01-09-2022 1.84 1.92 1.68 1.61 2.18 2.06 1.81
03-10-2022 -3.43 -2.64 -3.25 -2.77 -3.73 -3.72 -3.09
01-11-2022 4.58 6.3 6.83 7.39 6.36 6.89 7.09
01-12-2023 1.14 1.37 2.14 3.17 2.74 2.65 3.43
02-01-2023 -3.33 -3.33 -3.06 -2.63 -2.73 -2.87 -3.08
01-02-2023 -3.84 -4.38 -2.47 -2.61 -2.23 -1.71 -3.85
01-03-2023 -0.43 -0.58 -0.49 -0.7 -0.41 -0.69 0.89
Total -6.38 -3.19 0.46 3.24 1.64 3.6 2.34
Average Return -0.53 -0.27 0.04 0.27 0.14 0.3 0.2

From the above data visualization, it was clear that returns of selected sample schemes are more or less high in
August month. Bank of India Bluechip Fund Regular Plan Growth scheme shows maximum returns in the month of August
2022 during the period, April 2022 to March 2023. In almost all months, investor got loss during the study period. And all

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 Dr. A. Madhavi & Dr. Chinnamamba Cheepuri / ESP IJAST 2(2), 11-15, 2024

schemes showed the same trend throughout the study period. Graph shows that in the month of August, September,
November and December, investors received profits and in all other months they are at loss. To assist the more benefit
schemes, t-test was applied for a randomly selected two independent schemes. Results were précised and interpretation was
given in conclusions section.

Figure 1: Monthly Returns of Mutual Fund

Table 5: Pair wise Comparison of Mutual fund Schemes

Name of the Schemes Mean Variance t Stat P(T<=t) one-tail T Critical one-tail
Axis Bank 43.0692 3.31059
Bank of India 10.3733 0.25097 60.01543 1.41032E-17 1.770933
Bank of India 10.3733 0.25097
CanaraRobeco 40.6592 3.099063 -57.3199 2.5577E-17 1.770933
CanaraRobeco 40.6592 3.099063
ICICI Prudential 66.555 10.80261 -24.0595 7.16152E-15 1.739607
ICICI Prudential 66.555 10.80261
Kotak 370.682 258.8411 -64.158 6.81265E-17 1.782288
Kotak 370.682 258.8411
SBI 61.3117 8.026517 65.60269 5.21882E-17 1.782288
SBI 61.3117 8.026517
Sundaram 14.7392 0.50475 55.23494 4.08606E-16 1.782288

From the above table indicated that Bank of India Vs Canara bank, Canara bank Vs ICICI bank and ICICI Vs Kotak
bank shows that there is left tailed test because the t-stat value is negative(-57.312,-24.059 and -64.158 respectively).
Therefore the one tail p-value is for the left tailed test is 0.0000. The t-critical value of this one tail test are 1.77, 1.74 and 1.78
respectively. Here the p value for these banks are almost 0.0000 which is less than 0.05. Thus reject hypothesis and
conclude that (Bank of I n d i a <Canara Robeco <ICICI Prudential <Kotak ) are statistically significant. In the same
way Axis bluechip Vs Bank of India, Kotak Vs SBI and SBI Vs Sundaram shows right tailed test. Here t-stat values are positive
(60.015, 65.602 and 55.235 respectively). As per the statistical theory for right tailed test the p-values for these schemes are
almost equal to one which is greater than 0.05. Therefore accept hypothesis and conclude that (Axis<Bank of India,
Kotak<SBI<Sundaram) the compared banks are not statistically significant.

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 Dr. A. Madhavi & Dr. Chinnamamba Cheepuri / ESP IJAST 2(2), 11-15, 2024

IV. CONCLUSION
To understand the performance of selected samples schemes ANOVA technique and t-test is applied. As per results it
is concluded that there is significant difference between mutual fund schemes. From the selected schemes random
comparison was made to assist the best one. Pair wise independent t-test was performed to know the maximum returns
come from which mutual fund scheme. The results describing that out of all selected schemes kotak scheme gives maximum
returns, which was statistical evidence from the selected data. Results were shown in table:5. The remaining schemes were
more are less giving same returns.

V. REFERENCES
[1] Dr. Amir Rehmani(2022), “ An Empirical Analysis Of Equity Mutual Funds Using Risk-Adjusted Performance Measures”, Asian
Journal of Research in Banking and Finance, ISSN: 2249-7323, Vol.12, Issue 4, April 2022, PP: 56-64.
[2] Dr. Amit Gupta (2020), “A Study of Investor’s Perception towards Risk in Mutual Fund Investment”, Saudi Journal of Business and
Management Studies, ISSN: 2415- 6663(print), ISSN: 2415-6671(online), 22.01.2020, PP: 64-69
[3] Dr.Chirappa I B (2023), "Risk Management - A Performance of a Mutual Fund Industry Evidence from Different Caps", Shodak: A
Journal of Historical Research, ISSN: 0302-9832, Volume:53, Issue:01, 04, January-April:2023, PP: 106-115
[4] Dr. D. Devarajan and R. Poornima (2018), “ A Study on Risk-Returns of Mutual Funds in India”, EPRA International Journal
ofEconomic and Business Review, Volume-6, Issue-3, March 2018, e-ISSN:2347-9671, p-ISSN:2349-0187
[5] Swaroop Raj Gunisity and Manoj Kumar Vandanapu, Evolving Financial Paradigms: The Impact of Intelligent Document Processing
on Accounting Automation, International Journal of Computer Engineering and Technology (IJCET), 15(2), 2024, pp.72-82 doi:
https://doi.org/10.17605/OSF.IO/B4VSM
[6] Komal B. Sharma(2020), “Performance Analysis of Mutual Fund: A Comparative Study of the Selected Debt Mutual Fund Scheme in
India”, A Global Journal of Interdisciplinary Studies, ISSN-2581-5628, Volume-III, Issue II, May 2020, PP;5-8
[7] Krishna Samaddar(2018), “A study on Performance Evaluation of Mutual Funds in India” Journal of Emerging Technologies and
Innovative Research, July 2018, Volume 5, Issue 7, PP: 475-481
[8] Dr. K. Mahesh and Sujatha S.L.(2020), “ A Study on the Risk and Return Analysis of Mutual Funds (Equity Midcap)”, International
Journal of Creative Research Thoughts, An International Open Access, Peer-Reviewed, Refereed Journal, Volume 8, Issue 5, May
2020, ISSN:2320-2882, PP: 3364-3381
[9] Dr.Naliniprava Tripathy, “An Empirical Analysis on Performance Evaluation of Mutual Funds in India: A study on Equity Linked
Savings Schemes”, ICFAI Journal of Applied Finance, July2004
[10] B. Sharmila and Dr. R. Khanchana( ), “A Study on Mining Financial Time Series Databases in Mutual Equity Funds Using Computing
Techniques”, IOSR Journal of Computer Engineering, e-ISSN:2278-0661, p-ISSN:2278-8727, PP: 09-12
[11] Shivangi Agarwal, Nawazish Mirza (2017), “A Study On The Risk-Adjusted Performance of Mutual Funds Industry In India”, Review
of Innovation and Competitiveness, Volume 3, Issue I, PP:75-93
[12] PPF Interest Rates: Check Current PPF Interest Rate for FY 2023-24 (paisabazaar.com)

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