A Comparative Study on Performance of Equity Mutual Funds

 

Priya Deepa M¹, Hemavathy Ramasubbian²

¹MBA (IT) II Year, Department of Business Administration, Avinashilingam Institute for Home Science & Higher Education for Women, India

 

ABSTRACT:

The better returns makes out better investment the mutual funds provides out with various fields and has given out the higher level of performance for the past few years the mutual funds has been growing at faster rate and none the small investor can make investment and save for the future. The main objective of this study is find out the maximum returns gained by the top most companies and the result shows that the maximum level of returns and minimum level of risk is in Smallcap funds and next to that midcap funds stands with good returns. The tools used for analysis is annual return.

 

 

 

INTRODUCTION:

Diversified equity growth funds is the category that invest in a diverse mix of securities across the sector like large cap, midcap and Small cap funds. Mutual funds reduces out the risk and gives out the return than the stock market making out diversification of asset gives out better returns and the mutual funds has several category to invest. The investor can make out their investment in various sectors like equity funds, debt funds and balanced funds. The past over the mutual funds has been giving out the high level of performance and the investors get out with better returns. The measures are made to find out the whether the mutual funds is over performing or underperforming and this study helps to find out the better returns over the past three years.

 

CURRENT STATUS OF MUTUAL FUND INDUSTRY:

The average asset under management of mutual fund industry for the month of February has been raised at Rs.24,24,932 cr. The asset under management of mutual fund has been grown largely when compared to past years now the asset under management has grown up to 23.16 trillion it increased more than two third over the five years. The industry asset under management had crossed the milestone to 20 trillion over the three years and the total number of accounts as on February 28,2019 stood at 8.81 cr.

 

REVIEW OF LITERATURE:

Analysis on large, mid and small cap funds and made a findings on absolute return on multicap funds. The analysis was taken with over 50 companies of large mid and small cap funds and analyses was done with f-test and t-test and made findings that mid cap funds earn larger than small and large cap funds. The study also found that larger cap funds has the possibility to earn out the profit in certain period. (Prof.Parameshwar.H.S., Manishsoni 2018).  Study that  long term cap funds earns lower return than the mid cap funds and it takes huge days to earn out the profit and it states that large cap funds takes out more risk and it takes longer period to earn out the return. The study was analysed with f-test and t-test between large cap funds and mid cap funds. (Jenkinson et al. 2013). Evaluated the performance of selected growth mutual funds and data were taken from CNX-nifty and has been used for market portfolio return and it used with certain testing tools like sharpe ratio, treynor ratio and Jensen ratio and found out that it outperformed the benchmark return and came up with positive result (Debendra Shaw 2017).  Performance evolution of mutual fund schemes this evolution is done mainly for the small and medium investors and to make participate in capital market with low risk level. This scheme made a performance evaluated on CRISIL to find their returns, mean and standard deviation and the testing is done with three ratios mainly sharpe, Jensen treynor. (Geeta Rani, Dr.Vijay Singh Hooda 2017). Comparison of study on performance of selected mutual fund is mainly done for the retail investors and to find out the maximum return and risk and to make out the quick decision making the data are taken from the NSE and BSE and made out the findings and came up with the retail investors can make out the better result that retail investor make best investment in selected mutual funds (Satheesh Kumar Rangasamy, Dr.Vetrivel.T, Athika.M 2016). The study was analysed with selected equity mutual funds of large cap and midcap and made a comparison of both midcap and large cap to know the upward movement over the long term return and it has made the findings that both large and mid has the capacity to earn the large return and also investors has to make out the self analysis as it goes on with seasonal fluctuations (R.Nandhini, Dr.V.Rathnamani 2017). Comparison is made in various investment processes and to help in various industries the comparison is made on multicap funds three funds like large cap, midcap, small cap funds. The main objective of the study is to analyse the financial performance in terms of risk and return and from the analysis made mid and smallcap funds have the possibility to earn better return and the risk also reduces and in longcap funds it takes out the certain period to gain the profit. The tools used for the comparison is alpha, beta, r-squared, standard deviation (Suchita Shukla 2015).

 

RESEARCH OBJECTIVE:

Ÿ  Primary objective of this research paper is to find out the return of multicap funds.

Ÿ  To compare the selected equity mutual funds of largecap, midcap and Smallcap funds.

 

RESEARCH METHODOLOGY:

This study is based on the research design using secondary data. The data has been collected from published websites like BSE ltd, money control. The data is collected for the past three years. The period of the study is from 2016-2018.

 

The different companies that has been taken for analysis of three funds largecap, midcap and Smallcap funds. Smallcap funds like Frankline India smaller companies, HDFC Smallcap funds, Reliance Smallcap fund, Kotak Smallcap fund, SBI Smallcap fund. Midcap funds such as DSp midcap funds, Frankline India prima fund, HDFC midcap opportunities fund, TATA midcap funds, Sundaram midcap funds. Largecap funds such as ABSL frontline equity fund, HDFC equity fund, ICICI preduential bluechip fund, SBI bluchip fund, Frankline India bluchip fund.

 

RESULT AND DISCUSSION:

Table-1 Comparison of Largecap and midcap funds

Fund Name	2016	2017	2018
Aditya Birla Sun Life Frontline Equity Fund	7.43	30.58	-2.89
HDFC Equity Fund	7.26	36.86	-3.51
Franklin India Bluechip Fund	6.45	26.31	-3.56
ICICI Prudential Bluechip Fund	7.74	32.75	-0.8
SBI Bluechip Fund	4.83	30.23	-4.09
DSP Midcap Fund - Regular Plan	11.45	39.8	-10.1
HDFC Mid-Cap Opportunities Fund	11.35	41.66	-11.14
Franklin India Prima Fund	8.45	39.7	-9.35
Tata Midcap Growth Fund - Regular Plan	-2.22	49.78	-12.95
Sundaram Mid Cap Fund - Regular Plan	11.33	40.77	-15.33

 

From the table comparison of largecap, midcap the maximum returns gained during the year 2017. The maximum returns in largecap funds is  SBI Small Cap Fund 78.96% and HDFC Small Cap Fund - Regular Plan 60.75 and in 2018 the profit level has reduced and it is much less level of risk when compared to largecap and mid cap funds. The minimum returns in midcap during 2017 is Tata Midcap Growth Fund - Regular Plan 49.78 and Sundaram Mid Cap Fund - Regular Plan 40.77. The 2018 has reduced to the level of percent but it is only at the low level and it has performed with profitability.

 

Table-2 Comparison of Smallcap and midcap funds

Fund Name	2016	2017	2018
DSP Midcap Fund - Regular Plan	11.45	39.8	-10.1
HDFC Mid-Cap Opportunities Fund	11.35	41.66	-11.14
Franklin India Prima Fund	8.45	39.7	-9.35
Tata Midcap Growth Fund - Regular Plan	-2.22	49.78	-12.95
Sundaram Mid Cap Fund - Regular Plan	11.33	40.77	-15.33
Reliance Small Cap Fund	5.56	62.97	-16.61
Kotak Small Cap Fund - Regular Plan	8.86	44.02	-17.22
SBI Small Cap Fund	1.29	78.66	-19.53
Franklin India Smaller Companies Fund	10.19	43.46	-17.33
HDFC Small Cap Fund - Regular Plan	5.43	60.75	-8.04

 

From the table comparison of midcap and Smallcap funds the maximum returns gained during the year 2017. The high level of returns in Smallcap funds when compared to midcap and largecap funds. The maximum returns in largecap funds is  SBI Small Cap Fund 78.96% and  HDFC Small Cap Fund - Regular Plan 60.75 and in 2018 the profit level has reduced and it is much less level of risk when compared to mid cap funds. The maximum level of returns next to smallcap funds is midcap funds when compared to largecap funds. The minimum returns in midcap during 2017 is Tata Midcap Growth Fund - Regular Plan 49.78 and Sundaram Mid Cap Fund - Regular Plan 40.77. The 2018 has reduced to the level of percent but it is only at the low level and it has performed with profitability.

 

CONCLUSION:

The investor has various option to invest in shortest period and now mutual funds has given out the option to gain out the profit and diversify your profit. The maximum returns can be gained in mutual funds and Smallcap funds reducec out the risk and gives out the maximum returns. The investor can select out any mutual funds and to make out the quick profit level the Smallcap funds is highly recommended.

 

REFERENCE:

1.     Prof. Parameshwar.H.S., Manishsoni(2018) A Comparative Analysis Between Large- Cap and Mid -Cap Mutual Fund Returns. PARIPEX - INDIAN JOURNAL OF RESEARCH Volume-7 | Issue-5 | May-2018 | ISSN - 2250-1991

2.     Debendra Shaw(2017) Evaluating the Performance of Selected Growth Oriented Diversified Mutual Funds in India. International Journal of Innovative Research in Science, Engineering and Technology Vol. 6, Issue 8, August 2017.

3.     Geeta Rani, Dr.Vijay Singh Hooda(2017) Performance Evaluation of Mutual Fund Schemes: A Study of Selected Topper Schemes. IOSR Journal of Business and Management(IOSRJBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 19, Issue 10. Ver. IX. (October. 2017), PP 01-06

4.     R.Nandhini, Dr.V.Rathnamani(2017)  A Study on the Performance of Equity Mutual Funds (With special reference to equity large cap and mid cap mutual funds). IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 19, Issue 2. Ver. II (Feb. 2017), PP 67-72

5.     Satheesh Kumar Rangasamy, Dr.Vetrivel.T, Athika.M(2016) A Comparative Study on Performance of Selected Mutual Funds with reference to Indian Context. Asian Journal of Research in Social Sciences and Humanities Vol. 6, No. 5, May 2016, pp. 96-107.

6.     Suchita Shukla(2015) a comparative performance evaluation of Selected mutual funds. International Journal of Science Technology and Management Volume No.04, Special Issue No.02, February 2015.

7.     www.moneycontrol.com

8.     www.valuresearchonline.com

9.     www.morningstar.com

10.   www.investopdeia.com

 

 

 

Received on 12.04.2019                Modified on 11.05.2019

Accepted on 05.06.2019           ©AandV Publications All right reserved