Introduction:The purpose of the project is to analyse the mutual funds sector in India.

These funds are a type of investment company which pools money from
the investing public and then invests this pooled money which is a larger
sum in different instruments such as bonds, stocks etc. The industry has
grown six-fold in the last 10 years and is a consolidated industry with the
top 7 AMCs holding 70% of the market share.
Objective:The group aims to determine if there is a relationship between the return
generated on funds and the AUM of the market leaders. The performance
of a mutual fund is analysed based on different ratios.
Execution:-

2. In this section we take the case of HDFC mutual fund equity funds and
analysed it on the basis of various ratios.
S.N.

Fund Name

HDFC Equity Fund

HDFC Growth Fund

HDFC TOP 200 Fund

4
5
6
7
8

HDFC Core &

Satellite Fund
HDFC Focused Large
Cap Fund
HDFC Capital Builder
Fund
HDFC Multi Cap Fund
HDFC Sensex Index
Fund
Note: The data has been
mutualfundindia.com etc

Return
0.004591
4
0.002223
51
0.004795
73
0.000682
08
0.001314
71
0.002949
69
0.000697
04
0.004124
85
taken from

Std.
Deviation

Treynor
Beta
Ratio
0.5609 0.00324
0.06924
38
8
0.5067 0.00826
0.061253
19
87
0.5347 0.00302
0.064403
73
5
0.5715 0.01002
0.071008
29
81
0.4995 0.01020
0.062695
22
72
0.5134 0.00674
0.063912
59
59
0.5523 0.01034
0.068449
31
96
0.4574 0.00500
0.072429
18
32
sources like morningstar,

Alpha
0.00194
94
0.000
783
0.00197
78
0.001
889
0.001
74
0.000
012
0.002
003
0.00078
68

Gamma
(HM
Model)
0.138667
7
0.148541
3
0.148158
2
0.273808
0.227614
0.303037
0.23308
0.038608

Beta is the measure of market risk. It relates the return of a stock or

mutual fund to a market index. It reflects the sensitivity of the funds
return to fluctuations in the market index. In this case, no fund has beta
value above 1 it means these funds are not much sensitive. Treynor
ratio measures the return per unit of systematic risk. For measuring
volatility, this ratio uses beta. A high Treynor ratio is indicative of a better
riskreward equation for those who are investing. Here in this case, all the
Treynors ratio is negative meaning that the funds return were not better
than the risk-free return. It also gives idea that investors do not have any
extra advantage if they invest in these funds.
Jensen's alpha is a measure used to determine the extra return of a fund
over the theoretical expected return. It helps to determine the stock
selection ability of fund manager. A positive alpha means that return from
the fund tends to be higher than expected given beta statistic. In this
case, we find that 3/8 schemes have alpha values which are positive. It
means 37 per cent of the sample have shown a better performance than
the benchmark. This also shows that in these cases fund managers have
selected a better stock. Gamma tells us about the market timing ability. In
this case, all the values are negative. Hence, we can infer that market
timing ability is not present in this case. Hence to conclude we can say
that the three funds namely Top 200 Fund, Equity-Growth Fund and

Sensex Fund can be considered for the investment purpose. Also the
performance of HDFC fund is average.

Learning from the project:

The project helped us explore a new area which we were not very much
familiar with. While doing the project, we came to know about new topics
which included ratios used in analysing mutual funds (treynor ratio, alpha,
beta, gamma etc) which enhanced our knowledge horizon.