Monthly Market Risk Update: April 2024 [SlideShare]
MF and SIP: Mutual Funds and Systematic Investment Plan
1.
2. “A STUDY ON PERFORMANCE OF SYSTEMATIC
INVESTMENT PLAN AND PERFORMANCE EVALUATION
OF SELECTED MUTUAL FUNDS AT MAHINDRA FINANCE”
Kamal Ega
3. INTRODUCTION
Mutual Fund
A mutual fund is a pool of money which is
collected from many investors and it is invested by
an asset management company to achieve some
common objective of the investors.
Advantages of mutual fund
Professional Management
Diversification
Choice of Schemes
Tax Benefits
Liquidity
Well Regulated
Flexibility
5. Systematic Investment Plan
A Systematic Investment Plan (SIP) is a vehicle
offered by mutual fund to help investors save
regularly.
Like each drop of water makes an ocean, similarly
small savings in SIP results into large fund in the
future. Under SIP, a certain amount of money
of invested at regular daily/ weekly/ monthly
intervals which results into huge savings at the
end. SIP can rightly be called as "disciplined
mode of investment" as a form of discipline is
maintained in SIP.
6. NEED FOR THE STUDY
Generally most of the investors are eager to
park their fund in Mutual Funds with a view of
earning more returns with level of risk so find the
good fund.
A study is required to analyze the
performance of selected funds and performance of
SIP in different funds in Mutual Fund Industry.
This study provides opportunity to assess the
SIP performance in the different market volatility
conditions.
7. The Study has been carried on the Selected Mutual Fund
schemes such as
1. Tata Growth Fund (G)
2. Sahara Growth Fund (G)
3. HDFC Growth Fund (G)
4. Reliance Growth Fund (G)
The study is basically to evaluate the performances of
Growth Fund (G) schemes by taking the last five years NAV
i.e., 2007-2011.
We can estimate future rate of returns to invest in the
mutual funds to gain an save the money
SCOPE OF THE STUDY
8. OBJECTIVES OF THE STUDY
To find the performance of SIP
To Assess SIP, protected against market
conditions volatility
To find the fluctuations in Units purchased,
and Units allocated
To evaluate the performance of selected
funds
To compare the performance of selected
funds returns against their bench mark.
9. SOURCES OF DATA
My study consists of secondary data
Research Type : Exploratory Research
Data Sources : Websites, Reference Books, Fact sheets
Analytical Tools : Beta, Standard Deviation, Trey-nor &
Sharpe Measures
10.
11. Formulas Used
Expected Returns
variance=
STANDARD DEVIATION =
Beta=
Treynor Ratio = Sharpe Ratio =
20. SIP Performance of selected Mutual Funds
FUNDS RETURN
1. Tata Growth Fund (G) 45,666.24
2. Sahara Growth Fund (G) 45,110.50
3. HDFC Growth Fund (G) 50,117.52
4. Reliance Growth Fund (G) 46,717.88
45,666.24 45,110.50
50,117.52
46,717.88
42,000.00
44,000.00
46,000.00
48,000.00
50,000.00
52,000.00
1. Tata Growth
Fund (G)
2. Sahara Growth
Fund (G)
3. HDFC Growth
Fund (G)
4. Reliance
Growth Fund (G)
RETURN OF SIP
RETURN
21. SELECTED FUNDS RETURN VS RISK
FUNDS RETURN RISK
1. Tata Growth Fund (G) 18.15263 59.31417
2. Sahara Growth Fund (G) 69.86345 156.7574
3. HDFC Growth Fund (G) 18.17553 51.7225
4. Reliance Growth Fund (G) 8.006968 8.118373
18.15263
69.86345
18.17553
8.006968
59.31417
156.7574
51.7225
8.118373
0
20
40
60
80
100
120
140
160
180
1. Tata Growth
Fund (G)
2. Sahara Growth
Fund (G)
3. HDFC Growth
Fund (G)
4. Reliance
Growth Fund (G)
RETURN
RISK
22. BETA Values of the FUNDS
Funds S&P500
Index
BETA
VALUES
1. Tata Growth Fund (G) 1 2.249
Aggressive
Fund
2. Sahara Growth Fund (G) 1 2.108
3. HDFC Growth Fund (G) 1 1.865
4. Reliance Growth Fund (G) 1 -0.333 Defensive Fund
2.249 2.108
1.865
-0.333-0.5
0
0.5
1
1.5
2
2.5
1. Tata Growth
Fund (G)
2. Sahara
Growth Fund (G)
3. HDFC Growth
Fund (G)
4. Reliance
Growth Fund
(G)
S&P500 Index
Fund Performance
23. Treynor & Sharpe
FUNDS Treynor Sharp
Tata Growth Fund (G) 4.069 0.1543
Sahara Growth Fund (G) 28.872 0.3882
HDFC Growth Fund (G) 4.919 0.1773
Reliance Growth Fund (G) 2.982 -0.1223
4.069
28.872
4.919
2.982
0.1543 0.3882 0.1773
-0.1223
-5
0
5
10
15
20
25
30
35
Tata Growth Fund
(G)
Sahara Growth Fund
(G)
HDFC Growth Fund
(G)
Reliance Growth
Fund (G)
Treynor
Sharp
24. FINDINGS
Analysis of SYSTMATIC INVESTMENT PLAN show high
return from HDFC Growth Fund (G) is 50,117.52, low
return from Sahara Growth Fund (G) is 45,110.50.
Performance analysis of mutual fund show high
average return from Sahara Growth Fund (G) is
69.86345, low average return from Reliance Growth
Fund (G) is 8.006968.
Calculation of Standard Deviation show high risk is
156.7574 from Sahara Growth Fund (G) , low risk is
8.118373 from Reliance Growth Fund (G)
25. Calculation of Funds Returns vs.
Benchmark Returns show high performance
from Tata Growth Fund (G) is Greater than the
Bench Mark i.e.2.249>1, Low performance
from Reliance Growth fund - Retail plane (G)
is Less than the Bench Mark i.e. 1>-0.333.
Calculation of Treynor Ratio show High
Treynor ratio of Sahara Growth Fund (G) is
28.872, and low Treynor ratio of Reliance
Growth Fund (G) is 2.982.
Calculation of Sharp Ratio show High
Sharpe ratio of Sahara Growth Fund (G) is
0.3882, and Negative Sharpe ratio of
Reliance Growth Fund (G) is -0.1223
26. SUGGESTIONS
The SIP performance of HDFC Growth Fund (G) is high
so it is good to invest.
Investor on SIP need to know about changes between
price and units.
Performance of sip and selected fund not same in
some funds so investor need to consider all required
things.
27. CONCLUSION
Regular investment in sip can develop discipline in
investor’s savings, and it provides riskless return.
High risk provide high return and less risk provide less
return, so to find good fund investor need to consider
standard deviation, beta and Treynor & Sharpe ratio
values.
28. Thanks to
Internal Guide
Dr. C. VISWANATHA REDDY,
Associate professor, SVIM
External Guide
S. V. Krishna Rao,
State Head, Investment Products
Mahindra Finance