4.

COMPARATIVE ANALYSIS ON THE PERFORMANCE OF MUTUAL FUNDS

BETWEEN PRIVATE & PUBLIC

ABSTRACTS

Mutual funds pool the funds of small investor and invest it in the securities. As the
investors do not know in which portfolio the fund managers will go investment, the performance
such as the risk and the return associated with each fund type will only affect the investor. Here
the risk associated with each type will vary, hence the return will also vary. Since the investors
are investing based on the scheme category such as private or public sector funds.

Costs are the biggest problems with mutual funds. These costs eat into our return and
they are the main reason why the majority of funds reason why the majority of funds end up with
sub par performance. Some cities of the industry say that mutual funds companies get away with
the fees they charges only the average investors does not understand what he/she is paying for:
fees can be broken allow into two categories.

1. On going yearly fees to keep is invested in the fund.

2. Transaction fees paid when we buy or sell shares in a fund.

This study was undertaken with the existing mutual funds in the websites. This funds are
already used by the researcher for the analysis.

This study covers various schemes for analysis. They are Escorts mutual fund, GIC
mutual fund, JM mutual fund, Kotak mutual fund, ING Vysya mutual fund, Taurus mutual fund,
Reliance mutual fund.

OBJECTIVES OF THE STUDY

Primary Objectives

 To compare the public sector and private sector mutual fund performance.
 To compare the performance of market return with indices.
METHODOLOGY OF THE STUDY

The present study was conducted at Karvy Stock Broking Limited using the secondary
data. The main sources of secondary data are obtained from company websites. Informal
discussions were made with the industry staff. During the course of discussions the staff
expresses their opinions regarding the funds.

Data collection method

Secondary data were used for analyses such as (NAV) and performance of various
schemes of the asset management companies.

The net asset value (NAV) of the funds were collected from various websites. The
benchmark indices were collected from the respective company’s fact sheets and also from the
company’s common application forms.

Research design

For this study descriptive method is used for analyzing the performance of the funds.
Descriptive research study is concerned with describing the characteristics of particular
individual or of a group. In descriptive analysis the researcher must be able to define clearly,
what he wants to measure and must find adequate methods for measuring analysis.

TOOLS USED FOR ANALYSIS

Sharpe, Treynor and Jensen Method

Portfolio performance was measured mostly in terms of returns in early days, though
there was an awareness of the concept of risk, which was difficult to quantify. Risk could not be
incorporated in evaluation, as there was no measures that combined both return and risk.
Returns on portfolios performance are Sharpe Ratio, Treynor measure and Jensen measure.
These are absolute measure of portfolio performance that can be used to rank different portfolios.
 It is concluded that LIC mutual fund doing better performance incase of bond fund.
Escort growth plan doing better performance incase of growth fund. Incase of ranking LIC MF
govt. security fund shows a better ranking in Sharpe method. And Reliance Retail Plan shows a
better ranking in Treynor method. Kotak tech shows a better ranking in Jensen method. Other
finds has to perform better according to the analysis