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Summer Internship Programme Presentation

“A STUDY ON PERFORMANCE EVALUATION OF SELECTED

MUTUAL FUND SCHEMES ”
Presented to :-
Jury Member
Presented by :-
Name Exam no
Goswami Prashant N 542016
Parmar Rinku 542028

S. V. Institute of Management, Kadi

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Flow of Presentation
 INTRODUCTION

 COMPANY PROFILE

 LITERATURE REVIEW

 RESEARCH METHODOLOGY

 DATA ANALYSIS AND INTERPRETATION

 FINDING

 LIMITATION

 LEARNING OUTCOMES FROM SIP IN NJ INDIA INVEST PVT.LTD AT MEHSANA

 INTRODUCTION 3
A mutual fund is a professionally-managed investment scheme, usually run by an asset management company that
brings together a group of people and invests their money in stocks, bonds and other securities.
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Mutual Fund Growth in India

Source: www.njgroup.in
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Profile of N J India Invest.Pvt.Ltd
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Profile of N J India Invest.Pvt.Ltd
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Literature Review
Author (year) Objective Tools used for Sample size & Conclusion
Performance Research Design
Measurement
Authanasis G. To paper evaluates 1. The Treynor 23 sample size is The study shows that
Noulas Johan A. the performance of technique taken & coefficient the equity funds
Papanastasiou Greek equity fund 2. The Sharpe of variation, have neither the
John Lazaridis during the period technique estimated of betas, same risk nor the
(2005) 1997-2000 3. The Jensen return of mutual same return.
technique fund, relation b/w
risk& return

Mohsamed To investigate the 1. Return 3 mutual fund Out of the selected

zaheeruddin.pinninj financial 2. Std.deviation intermediaries is to funds. they found
Sivakumar, k. performance of the 3. Beta be taken as sample one in top position to
Srinivas (jan –feb mutual funds 4. Sharpe ratio giving high return to
2013) 5. Treynor ratio the investor
6. Jensen ratio
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Literature Gap

 The performance of mutual funds study has been undertaken by researchers in foreign countries and as
well as in India. The study is being studied in depth by the researchers in all countries. This research is
on measuring performance evaluation of mutual fund scheme. There has been no research on the
performance evaluation of mutual funds scheme in period of 2013-18, so this research focuses on the
performance evaluation of mutual fund schemes.
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Research Methodology
Research objective :-

 The primary object of the present project is to know about which mutual funds gave highest
performance in a last five years .

 To investigate the financial performance of the mutual funds with the tools of return, standard
deviation and beta.

 To evaluate the selected funds assessment on the basis of various performance ratios (Sharpe,
Treynor and Jensen).
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 For this research activity,

 We have selected 10 mutual funds from the Indian market. All funds are in equity growth
category.
 Data has been collected from N J Wealth , National Stock Exchange, Value Research and
Associated of Mutual Funds in India (AMFI).
 Treasury bill rate of return is selected as a risk free return, which is 6.48% p.a.(source:
rbi.org)
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 Collected NAV of funds of each year for the year 2013-18 and define return.

 Defined standard deviation on the basis of return.

 Found out average return.

 Defined beta of funds and market, Nifty50 index return is taken as market return.

 Found out Treynor, Sharpe and Jensen ratio and performance

 Finally we have given rank to mutual funds according to each ratio.

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Data Analysis
 Mutual fund performance can be analysed through performance measurement
ratios which are used in portfolio analysis. We here are using Treynor, Sharpe,
and Jensen ratio to evaluate mutual funds and rank accordingly. Composite
portfolio performance measures have the flexibility of combining risk and
return performance into a single value. The most commonly used composite
measures are: Treynor, Sharpe and Jensen measures. While Treynor measures
only the systematic risk summarized by beta, Sharpe concentrates on total risk
of the mutual fund.
Average Return, Standard Deviation and Beta Performance 13
Sr NAME OF FUNDS AVG. RETURN S.D. (σ) Beta (β)
1 HDFC Small Cap Fund – Gr 0.095386 0.0933553 0.8495642
2 ICICI Prudential Value Discovery 0.083401 0.8531235 0.8136964
Fund Gr
3 Aditya Birla Sun Life Frontline Equity 0.068211 0.8753745 0.93286
Fund – Gr
4 SBI Magnum Multicap Fund - Gr 0.081768 0.8950855 0.906011

5 ICICI Prudential Bluechip Fund – Gr 0.068051 0.8768774 0.933875

6 Reliance Small Cap Fund – Gr 0.131042 1.0397217 0.813008

7 SBI Blue Chip Fund – Gr 0.072205 0.8387276 0.874942
8 HDFC Hybrid Equity Fund - Gr 0.063722 1.1387668 1.111525
9 Mirae Asset Emerging Bluechip Fund - 0.112681 0.936646 0.840254
Gr
10 L&T India Value Fund - Growth 0.097115 1.0308619 0.978859
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Treynor Performance
Rank Mutual Fund Treynor ratio

1 Reliance Small Cap Fund – Growth 0.1393455

2 Mirae Asset Emerging Bluechip Fund – Growth 0.1129754
3 HDFC Small Cap Fund – Growth 0.0913797
4 L&T India Value Fund – Growth 0.0810760
5 ICICI Prudential Value Discovery Fund Growth 0.0806787
6 SBI Magnum Multicap Fund – Growth 0.0706559
7 SBI Blue Chip Fund – Growth 0.0622350
8 Aditya Birla Sun Life Frontline Equity Fund – Growth 0.0540896
9 ICICI Prudential Bluechip Fund – Growth 0.0538595
10 HDFC Hybrid Equity Fund – Growth 0.0413567
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Sharpe performance
Rank Mutual Fund Sharpe index
1 HDFC Small Cap Fund Gr 0.8315

2 Mirae Asset Emerging Bluechip Fund - Gr 0.1013

3 Reliance Small Cap Fund - Gr 0.0811

4 ICICI Prudential Value Discovery Fund Gr 0.0769

5 L&T India Value Fund - Growth 0.0770

6 SBI Magnum Multicap Fund – Gr 0.0715

7 SBI Blue Chip Fund – Gr 0.0649

8 Aditya Birla Sun Life Frontline Equity Fund – Gr 0.0576

9 ICICI Prudential Bluechip Fund - Gr 0.0574

10 HDFC Hybrid Equity Fund - Gr 0.0404
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Jensen performance
Rank Mutual Fund Jensen index
1 Reliance Small Cap Fund – Gr 0.0212
2 Mirae Asset Emerging Bluechip Fund – Gr 0.0152
3 ICICI Prudential Value Discovery Fund Gr 0.0122
4 HDFC Small Cap Fund – Gr 0.0116
5 SBI Blue Chip Fund – Gr 0.0068
6 SBI Magnum Multicap Fund – Gr 0.0060
7 Aditya Birla Sun Life Frontline Equity Fund – Gr 0.0034
8 ICICI Prudential Bluechip Fund – Gr 0.0033
9 L&T India Value Fund – Growth 0.0017
10 HDFC Hybrid Equity Fund – Gr -0.0051
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Comparison of Treynor, Sharpe and Jensen Index

Rank Treynor Rank Sharpe Rank Jensen

1 Reliance Small Cap 1 HDFC Small Cap 1 Reliance Small Cap
Fund – Growth Fund - Growth Fund – Growth

2 Mirae Asset 2 Mirae Asset 2 Mirae Asset

Emerging Bluechip Emerging Bluechip Emerging Bluechip
Fund – Growth Fund – Growth Fund – Growth

3 HDFC Small Cap 3 Reliance Small Cap 3 ICICI Prudential

Fund - Growth Fund – Growth Value Discovery
Fund - Growth
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Comparison of Treynor, Sharpe and Jensen Index

Rank Treynor Rank Sharpe Rank Jensen

4 L&T India Value 4 ICICI Prudential 4 HDFC Small Cap
Fund – Growth Value Discovery Fund – Growth
Fund - Growth
5 ICICI Prudential 5 L&T India Value 5 SBI Blue Chip
Value Discovery Fund - Growth Fund - Growth
Fund – Growth

6 SBI Magnum 6 SBI Magnum 6 SBI Magnum

Multicap Fund – Multicap Fund - Multicap Fund -
Growth Growth Growth
7 SBI Blue Chip 7 SBI Blue Chip 7 Aditya Birla Sun
Fund - Growth Fund – Growth Life Frontline
Equity Fund –
Growth
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Comparison of Treynor, Sharpe and Jensen Index

Rank Treynor Rank Sharpe Rank Jensen

8 Aditya Birla Sun 8 Aditya Birla Sun 8 ICICI Prudential

Life Frontline Life Frontline Bluechip Fund -
Equity Fund – Equity Fund – Growth
Growth Growth

9 ICICI Prudential 9 ICICI Prudential 9 L&T India Value

Bluechip Fund - Bluechip Fund - Fund - Growth
Growth Growth

10 HDFC Hybrid 10 HDFC Hybrid 10 HDFC Hybrid

Equity Fund – Equity Fund – Equity Fund –
Growth Growth Growth
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Findings

 From the entire 10 schemes best scheme is Reliance Small Cap Fund Growth because in all the
two models it stands on 1st rank and also it provides good return.
 It is revels from the study that, the Reliance Small Cap Fund Growth plan giving a higher average
returns in compare to other funds.
 It is noticed that HDFC Small Cap Fund Growth giving a higher return in the Sharp Index.
 The investor who bears high risk will be getting high returns.
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Findings

 It is noticed that, the HDFC Hybrid Equity Fund Growth plan is not performing well in compare to others
fund.
 From this analysis we have found out similarity in Sharpe and Jensen’s model because more schemes are on
similar positions in these two models. Another reason behind this is that Sharpe measures total risk and
Jensen measures the predictive ability of manager, where manager always consider total risk while selecting
the security. Due to this reason both models indicate similar positions for more schemes.
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Limitation

 The data collected is basically confined to secondary sources.

 As the data is to be collected on the basis of five years only.
 It is possible that the fund that did not perform well in this five years period is performing well in long term.
 The funds which we taken it might be possible that the most of investor did not invest in it.
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Learning Outcomes From SIP In NJ India Invest Pvt Ltd At Mehsana

 In fist week of SIP Mr.Manish Ravat Sir (Branch manager ) provided the training and
some qualitative information about NJ India invest Pvt. Ltd and mutual fund industry
like,
 Give brief information about NJ India invest.
 Basic knowledge about mutual fund and its history.
 Basic knowledge about type of mutual fund.
 Basic knowledge of commission between LIC advisor and Mutual fund advisor.
 Basic information about wealth creation of advisors client in mutual fund
 After first week Mr.Jaymin Patel & Mr.Akshay Joshi(Unit Manager )They provided
training for tale calling, how to talk in person on tale calling and how to convince people
to become a mutual fund advisor and generate business opportunity program in NJ India.

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Learning Outcomes From SIP In NJ India Invest Pvt Ltd At Mehsana

 After tele calling we went from market to collect leads meeting different financial advisors from
different places like Mehsana, Kadi, Bechraji,Viramgam in other city.
 NJ organises business opportunity program for who to become mutual fund advisor.
 During summer internship program we attended three time business opportunity program which
one was organised by us in prime restaurant, Kadi. In BOP meeting we learn to meet prospective
and build relation with them. We are developing communication skills with different type of
person.
 In extra time or free time we learn that how to open e wealth account and how to see investment
and return of client in different type of scheme in mutual fund.
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Thank you …..