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Performance Of Mutual Funds In India : A Comparative Analysis Of SBI Mutual

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Research · October 2018

DOI: 10.9790/487X-2010013643

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IOSR Journal of Business and Management (IOSR-JBM)
e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 20, Issue 10. Ver. I (October. 2018), PP 36-43
www.iosrjournals.org

Performance Of Mutual Funds In India : A Comparative

Analysis Of SBI Mutual Funds And HDFC Mutual Funds
Manisha Raj1, Tanya Verma2 , Shruti Bansal3 , Aashita Jain4
1
Assistant Professor, Amity School of Economics, Amity University, Noida, Uttar Pradesh
2
Student, Amity School of Economics, Amity University, Noida, Uttar Pradesh
3
Student, Amity School of Economics, Amity University, Noida, Uttar Pradesh
4
Student, Amity School of Economics, Amity University, Noida, Uttar Pradesh
Corresponding Author: Tanya Verma

Abstract: India is emerging as the next big investment destination, courtesy its high savings and investment
rate, as compared to other Asian economies. In present changing market environment, mutual funds are seen as
a transparent and low cost investment option which attracts investorsand help in the growth of the industry.
Normally, The Private Sector Mutual Funds have recorded much better performance as compared to the Public
sector Mutual Funds mainly due to better Funds allocation, better Management and efficient performance of
Portfolio Manager. Thus, this study is an effort to analyze and compare the performance of Growth and
Balanced Mutual Funds of one Private Sector Mutual Fund i.e. HDFC Mutual Fund and one Public Sector
Mutual Fund i.e. SBI Mutual Fund.
----------------------------------------------------------------------------------------------------------------------------- ----------
Date of Submission: 04-10-2018 Date of acceptance: 19-10-2018
----------------------------------------------------------------------------------------------------------------------------- ----------

I. Introduction
Mutual funds in India is rapidly growing mainly due to the infrastructural development and also due to
the conception of Indians as they consider mutual funds to be an optimum investment vehicle. The major pros
for the investors are risk reduction, expert professional management, diversified portfolio,tax benefit and
economies of scale. According to a research report published by RNCOS on “Indian Mutual Fund Industry”,
mutual fund industry of India is growing at a rapid pace . But stocks in which the funds are invested are prone to
risks. Thus, there is a necessity to analyze the risk and return of the Mutual Funds. Some Mutual funds have
performed well and some did not and thus investors incurred losses due to movements of the stocks in the
market. The movements of the stocks depend on the performance of a particular firm, or the stage in which the
industries is etc. With this background, the current study has been undertaken to find the risk and return
involved in the SBI mutual funds in comparison with the HDFC mutual funds for the investors to invest.

II. Literature Review

Ms. Dhanalakshmi K (2013) carried out a research on the topic ,“A Comparative Analysis On
Performance Of SBI And HDFC Equity, Balanced And Gilt Mutual Fund” with a view to compare and analyze
the performances of SBI and HDFC Mutual Funds which special reference to Equity, Gilt and Balanced Mutual
Funds using Sharpe Ratio, Treynor Ratio and Jensen Ratio. The study covers only three years’ performance of
the funds, i.e. from January 2010 to December 2012. She concluded that the funds fluctuated in their
performance according to the market conditions i.e. the volatility in the market affected the returns of the
schemes in the year 2010 and 2011, but the performance of the schemes revived better in the year 2012. Overall
the study conducted revealed that investment in HDFC (Equity, Balanced, Gilt) Mutual Fund is better when
compared to the SBI Mutual funds over the specified time period.
Dr. Rajesh Manikraoji Naik and M R Senapathy (2013) conducted a research on the topic,” A
Comparative Study On The Performance Of Mutual Funds SBI Mutual Funds V/S Others” wherein they
compared the 1 year performance (from 2011-2012) of SBI Magnum Equity Mutual Fund with HDFC top 100
Mutual Fund on the basis of Standard Deviation, Sharpe ratio and Beta. Conclusively the authors said that, both
HDFC Mutual Fund and SBI Mutual fund are good funds to invest in and there is only a marginal difference
between them.
Dr. Vinay Kandpal and Prof. P. C. Kavidayal (2014) carried out a research on the topic, ”A
Comparative Study of Selected Public & Private Sector Equity Diversified Mutual Fund Schemes in India”
wherein they also took HDFC Premier Multi Cap, HDFC Growth and HDFC Core and Satellite Mutual Funds
under the category of Private Sector Mutual Funds, to compare with the 5 year (2008-2013) performances of
selected Public Sector Mutual Funds on the basis of Standard Deviation, Beta, Jensen ratio, Sharpe ratio, R

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 Performance Of Mutual Funds In India : A Comparative Analysis Of SBI Mutual Funds And HDFC
Squared and P/E ratio. The authors found that HDF Premier Multi Cap and HDFC Core and Satellite Mutual
Funds have a beta greater than 1 indicating higher risk and hence can be considered by the investors while
investing. It was also found that HDFC Growth Fund is the best scheme among its peers as it has the maximum
Sharpe ratio and it also ranked second as per Treynor Ratio. On the basis of this, the authors concluded that the
Private sector mutual fund schemes performed better than the Public sector mutual fund schemes in the
specified time period.
Babasab Patil (2012) undertook a research on the topic ,”The Analysis and Comparative Study of SBI
and HDFC Mutual funds” wherein he applied various statistical techniques like Standard Deviation, Variance,
Covariance and Correlation to evaluate the risks and returns of SBI Magnum Equity Fund-Growth and HDFC
Equity Fund-Growth over the time period of 1 year (from 2nd Apr. 2007 to 31st Mar. 2008). He concluded that
SBI Magnum Equity fund had higher risk and higher return when compared to HDFC Equity fund but when
investor’s expectations are considered, the author believed that both the funds underperformed.
Mrinal Manish (2010) carried out a research on the topic ,”Comparative analysis of Mutual Funds
with special reference to SBI Mutual Funds” wherein he compared the 5 year performances of SBI Magnum
Contra and SBI Magnum Equity with some selected Private Sector Mutual funds in order to ascertain the returns
and risk offered by these funds. After considering all the statistical parameters, it was found that Magnum
Contra was the best fund in the category.
.
III. Objectives of the Study
1. To analyze and compare the performances of SBI and HDFC Mutual Fund with special reference to Equity
and Balanced Mutual Funds and identify the best amongst them.
2. To understand the risk and return relationships for each mutual fund scheme under consideration using
different statistical measures.
3. To compare schemes return and risk with benchmark i.e. S&P BSE 100

IV. Material And Methods

The present study is based on the analysis of secondary data which is collected from reviewing
different research papers and articles published by different authors . The data of NAV is collected for the
period from 1st May’16 to 31st Apr’17. The data so collected has been tabulated and analyzed with the help of
MS Excel. The benchmark index for this study is taken to be the broad-100 shared base BSE National Index.
Hence it would cover the majority percentage of different scheme portfolios and therefore is expected to provide
better performance benchmark. Risk free rate of return, which refers to that minimum return on investment that
has no risk of losing the investment over which it is earned, has been taken as the Indian Government 10 year
bond rate of year 2016, i.e. 7.52%.

METHOD-
1) RETURNS = NAVCURRENT CLOSE – NAVPREVIOUS CLOSE
2) STANDARD DEVIATION-

Where, x = return of portfolio; x (or y) = average return of portfolio; N = number of months

3) CORRELATION COEFFICIENT-
It shows linear dependency between fund returns and returns of the benchmark index. The correlation
coefficient here is calculated using MS Excel.
If 0.5<r<1 , then there is high positive correlation between the fund returns and the benchmark returns.
If 0<r<0.5 , then there is low positive correlation between the fund returns and the benchmark returns.
4) R-SQUARED-
It is calculated by squaring the correlation coefficient ( r ) and multiplying it by 100.
5) BETA-
Beta, also known as the "beta coefficient," is a measure of the volatility, or systematic risk, of a security or a
portfolio in comparison to the market as a whole.
Beta here is calculated as-r(p,b) . S.D.p/S.Db
Where,

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 Performance Of Mutual Funds In India : A Comparative Analysis Of SBI Mutual Funds And HDFC
r(p,b) = correlation coefficient between the returns of the concerned portfolio and the returns of the benchmark
index. (BSE 100) , S.D.p= Standard Deviation of the concerned portfolio , S.D. b = Standard Deviation of the
benchmark index (BSE 100)
6) ALPHA-
Alpha measures the difference between a fund's actual returns and its expected performance, given its level of
risk. A fund's alpha is often considered to represent the value that a portfolio manager adds to or subtracts from
a fund's return above and beyond a relevant index's risk/reward profile.
Alpha (α) here is calculated as =X - β(Y)
where,
X = average return to NAV returns; Y = average return to market index, β=Beta
7) SHARPE RATIO-
The Sharpe ratio formula is:

Where,
Ra= Concerned portfolio return , Rf = Risk Free Rate , σ = Portfolio’s Standard Deviation
Sharpe ratio can be used to rank the desirability of fund or portfolio.
8) TREYNOR RATIO-
The Treynor ratio is a measurement of the returns earned in excess of that which could have been earned on an
investment that has no diversifiable risk , per each unit of market risk assumed.
The higher the Treynor ratio, the better the performance of the portfolio under analysis.
Formula:

Where,
T= Treynor ratio , Ri= Portfolio I’s return , Rf = Risk Free Rate , β= Portfolio I’s Beta

V. Results
1) RETURNS
Table 1 : NAV and monthly returns of HDFC Growth fund and SBI Magnum Equity Fund for the year
2016-17
Months/Name of fund HDFC Growth fund SBI Magnum Equity
Fund
NAV Returns NAV Returns
Apr’16 125.443 72.984
May’16 127.764 2.321 73.431 0.747
Jun’16 132.274 4.51 76.538 3.107
July’16 137.821 5.55 78.088 1.55
Aug’16 142.798 4.977 82.586 4.5
Sep’16 146.363 3.565 84.093 1.44
Oct’16 145.551 -0.812 83.537 -0.556
Nov’16 149.586 4.035 83.91 0.373
Dec’16 142.162 -7.424 78.761 -5.149
Jan’17 140.393 -1.769 77.184 -1.577
Feb’17 150.357 9.964 80.864 3.68
Mar’17 155.037 4.68 83.175 2.311
Apr’17 159.331 4.294 86.004 2.829

It can be computed from Table 1, that the rate of return of HDFC Growth Fund for the year 2016-17 is
85.066% , i.e. returns have almost increased 2 manifold whereas for SBI Magnum Equity fund, the rate of return
is 278.71% , i.e. returns have almost increased 4 manifold.

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 Performance Of Mutual Funds In India : A Comparative Analysis Of SBI Mutual Funds And HDFC
Table 2 : The NAV and monthly returns of HDFC Balanced fund and SBI Magnum Balanced Fund for
the year 2016-17
Months/ Name of Fund HDFC Balanced SBI Magnum Balanced
Fund Fund
NAV Returns NAV Returns
Apr’16 106.399 94.799
May’16 108.288 1.889 96.027 1.228
Jun’16 111.241 2.953 98.361 2.334
July’16 114.108 2.867 100.578 2.217
Aug’16 118.473 4.365 104.197 3.619
Sep’16 121.52 3.047 104.96 0.763
Oct’16 122.081 0.561 105.095 0.135
Nov’16 124.371 2.29 108.253 3.158
Dec’16 120.844 -3.527 103.537 -4.716
Jan’17 119.326 1.0518 100.579 -2.958
Feb’17 125.357 6.031 105.677 5.098
Mar’17 127.33 1.973 106.974 1.298
Apr’17 131.068 3.738 109.155 2.181

It can be computed from Table 2, that the rate of return of HDFC Balanced Fund for the year 2016-17
is 97.88%, i.e. returns have almost increased 2 manifold whereas for SBI Magnum Balanced fund, the rate of
return is 77.6% , i.e. the returns have almost increased more than half.

2) STANDARD DEVIATION

Table 3 : Calculation of Standard Deviation of HDFC Balanced Fund

MONTHS NAV RETURNS (x) x- y (x-y)^2

Apr’16 106.399
May’16 108.288 1.889 -0.166 0.027
June’16 111.241 2.953 0.897 0.804
July’16 114.108 2.869 0.811 0.657
Aug’16 118.473 4.365 2.31 5.33
Sep’16 121.52 3.047 0.992 0.984
Oct’16 122.081 0.561 -1.494 2.232
Nov’16 124.371 2.29 0.235 0.055
Dec’16 120.844 -3.527 -5.582 -31.15
Jan’17 119.326 -1.518 -3.635 13.213
Feb’17 125.357 6.031 3.976 15.808
Mar’17 127.33 1.973 -0.082 0.006
Apr’17 131.068 3.738 1.683 2.832
Total= 24.669 Total= 73.092

Here, y(Mean) = 24.669/12 = 2.055

We know,
So, Standard Deviation of the fund is = (73.092/12) 1/2 = 2.468

Table 4 : Calculation of Standard Deviation of SBI Magnum Balanced Fund

MONTHS NAV Returns (x) x-y (x-y)^2
Apr’16 94.799
May’16 96.027 1.228 0.032 0.001
Jun’16 98.361 2.334 1.138 1.295
July’16 100.578 2.217 1.021 1.042
Aug’16 104.197 3.619 2.423 5.87
Sep’16 104.96 0.763 -0.433 0.187
Oct’16 105.095 0.135 -1.061 1.12
Nov’16 108.253 3.158 1.962 3.849
Dec’16 103.537 -4.716 -5.912 34.951
Jan’17 100.579 -2.958 -4.154 17.255
Feb’17 105.677 5.098 3.902 15.225
Mar’17 106.974 1.298 0.102 0.01
Apr’17 109.155 2.181 0.985 0.97
Total= 14.357 TOTAL=81.769

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 Performance Of Mutual Funds In India : A Comparative Analysis Of SBI Mutual Funds And HDFC
y(Mean) = 14.357/12 = 1.196
So, Standard Deviation of the fund is = (81.769/12) 1/2 = 2.61

Table 5 : Calculation of Standard Deviation of HDFC Growth Fund

MONTHS NAV Returns(x) x-y (x-y)^2
Apr’16 125.443
May;16 127.764 2.321 0.593 0.351
Jun’16 132.24 4.51 1.686 2.842
July;16 137.821 5.55 2.726 7.431
Aug’16 142.798 4.977 2.153 4.635
Sep’16 146.363 3.565 0.741 0.549
Oct’16 145.551 -0.812 -3.636 13.22
Nov’16 149.586 4.035 1.211 1.466
Dec’16 142.162 -7.424 -10.248 105.021
Jan’17 140.393 -1.769 -4.593 21.095
Feb’17 140.357 9.964 7.14 50.579
Mar’17 155.037 4.68 1.856 3.44
Apr’17 159.331 4.294 1.47 2.16
Total= 33.89 TOTAL=
272.781

Y(mean) = 33.89/12 = 2.824

So, Standard Deviation of the fund is = (272.781/12) 1/2= 4.21

Table 6 : Calculation of Standard Deviation of SBI Magnum Equity Growth Fund

MONTHS NAV RETURNS (x) x-y (x-y)^2
Apr’16 72.684
May’16 73.431 0.747 -0.357 0.127
Jun’16 76.538 3.107 2.003 4.012
July’16 78.088 1.55 0.446 0.198
Aug’16 82.586 4.5 3.396 11.532
Sep’16 84.093 1.44 3.336 0.112
Oct’16 83.537 -0.556 -1.66 2.75
Nov’16 83.91 0.373 -0.731 0.53
Dec’16 78.761 -5.149 -6.253 39.1
Jan’17 77.184 -1.577 -2.681 7.18
Feb’17 80.864 3.68 2.576 6.635
Mar’17 83.175 2.311 1.207 1.454
Apr’17 2.829 1.725 2.975
Total= 13.255 TOTAL= 76.607

Y(mean)= 13.255/12 = 1.104

So, Standard Deviation of the fund is = (76.607/12) 1/2 = 2.52

3) CORRELATION COEFFICIENT
The returns of HDFC Growth Fund, HDFC Balanced Fund, SBI Growth Fund and SBI Balanced Fund
have been compared to the returns of the benchmark S&P BSE 100 over the same time period i.e. 2016-17 and
then an attempt is made to find the correlation and hence the correlation coefficient ( r ) between them.

Table 7 : Returns of the S&P BSE 100 over the time period of 1 st May’16-31st Apr’17

MONTHS POINTS RETURNS (x)

Apr’16 7818.4
May’16 7952.2 133.82
Jun’16 8284.23 332.03
July’16 8486.19 201.96
Aug’16 8852.99 366.8
Sep.’16 8999.65 146.66
Oct.’16 8863.71 -135.94
Nov’16 8920.18 56.47
Dec’16 8436.01 -484.17
Jan’17 8398.72 -37.29
Feb’17 8999.55 650.83
Mar’17 9251.54 251.99
Apr’17 9494.36 242.82

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 Performance Of Mutual Funds In India : A Comparative Analysis Of SBI Mutual Funds And HDFC
Table 8 : The correlation coefficient ( r ) of SBI Magnum Equity Fund, SBI Magnum Balanced Fund,
HDFC Growth Fund and HDFC Balanced Fund
Type Of Fund/ Name of Bank SBI HDFC
Growth Fund 0.938 0.956
Balanced Fund 0.882 0.955

4) R-SQUARED

Table 9 : The r-squared value of SBI Magnum Equity Fund, SBI Magnum Balanced Fund, HDFC
Growth Fund and HDFC Balanced Fund
Type of Fund/ Name of Bank SBI HDFC
Growth Fund 87.98 91.39
Balanced Fund 77.79 91.20

5) BETA

Table 10 : Calculation of Standard Deviation of S&P BSE 100

MONTHS POINTS RETURNS (x) x-y (x-y)^2
Apr’16 7818.4
May’16 7952.2 133.82 100 10000
Jun’16 8284.23 332.03 188.21 35423.0041
July’16 8486.19 201.96 58.14 3380.2596
Aug’16 8852.99 366.8 222.98 49720.0804
Sep.’16 8999.65 146.66 2.84 8.0656
Oct.’16 8863.71 -135.94 -279.76 78265.6576
Nov’16 8920.18 56.47 -87.35 7630.0225
Dec’16 8436.01 -484.17 -627.99 394371.44
Jan’17 8398.72 -37.29 -181.11 32800.8321
Feb’17 8999.55 650.83 507.01 257059.14
Mar’17 9251.54 251.99 108.17 11700.748
Apr’17 9494.36 242.82 99 9801
Total=1725.98 Total= 890160.452

Y(mean) = 1725.98/ 12 = 143.82

So, Standard Deviation of BSE 100 is = (890160.452/12) 1/2 = 272.36
Beta of a Fund is calculated as – r(p,b) . S.D.p/S.Db
 HDFC Growth Fund
r(p.b) = 0.956 , S.D.p = 4.21 , S.D.b = 272.36
Beta = 0.956 x 4.21/272.36 = 0.0147
 SBI Magnum Equity Fund
r(p,b) = 0.938 , S.D.p= 2.52 , S.D.b = 272.36
Beta = 0.938 x 2.52/ 272.36= 0.00867
 HDFC Balanced fund
r(p,b)= 0.955 , S.D.p = 2.468 , S.D.b= 272.36
Beta = 0.955 x 2.468/272.36 = 0.00865
 SBI Magnum Balanced Fund
r(p.b)= 0.882 , S.D.p = 2.61 , S.D.b = 272.36
Beta = 0.882 x 2.61/272.36 = 0.00845

6) ALPHA
Alpha is calculated by = X - β(Y)
 HDFC Growth Fund =
X = 2.824
Beta = 0.0147
Y = 143.83
Alpha = 2.824 – 0.0147(143.83) = 0.71
 SBI Magnum Equity Fund =
X = 1.104
Beta = 0.00867
Y = 143.83
Alpha = 1.104 – 0.00867 (143.83)= -0.143
 HDFC Balanced Fund

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 Performance Of Mutual Funds In India : A Comparative Analysis Of SBI Mutual Funds And HDFC
X = 2.055
Beta = 0.00865
Y = 143.83
Alpha = 2.055 – 0.00865(143.83)= 0.811
 SBI Magnum Balanced Fund
X = 1.196
Beta = 0.00845
Y = 143.83
Alpha = 1.196 – 0.00845 (143.83) = -0.019

7) SHARPE RATIO
Sharpe Ratio is calculated by = (Rp– Rf) / S.D.p
 HDFC Growth Fund
Rp= 85.006 , Rf = 7.52 ,S.D.p = 4.21
Sharpe Ratio = (85.006-7.52) / 4.21 = 18.4
 SBI Magnum Equity Fund
Rp= 278.71 , Rf = 7.52 , S.D.p = 2.52
Sharpe Ratio = (278.71 – 7.52) / 2.52 = 107.61
 HDFC Balanced Fund

Rp = 97.88 , Rf = 7.52 , S.D.p = 2.468

Sharpe Ratio = (97.88 – 7.52) / 2.468 = 36.61

 SBI Magnum Balanced Fund

Rp= 77.6 , Rf = 7.52 , S.D.p = 2.61
Sharpe Ratio = (77.6-7.52) / 2.61 = 26.85

8) TREYNOR RATIO
Treynor Ratio is calculated by= (Rp- Rf) / βp
 HDFC Growth Fund
Βeta = 0.0147
Treynor ratio = (85.006-7.52)/ 0.0147
= 5271.1

 SBI Magnum Equity Fund

β= 0.00867
Treynor Ratio = (278.71 – 7.52)/ 0.00867
= 31279.12

 HDFC Balanced Fund

Β= 0.00865
Treynor Ratio = (97.88 – 7.52) / 0.00865
= 10466.242
 SBI Balanced Fund
Β= 0.00845
Treynor ratio- (77.6-7.52) / 0.00845
= 8293.45

VI. Findings and Conclusion

1) It was found that the rate of return of HDFC Balanced Fund (97.88%) was more than that of SBI Magnum
Balanced Fund (77.6%) , but on the other hand , rate of return of SBI Growth Fund (278.71%) was more
than that of HDFC Growth Fund (85.066%). Collectively, it was found that the rate of returns of SBI
Mutual Funds were relatively higher than HDFC Mutual Funds.
2) Standard Deviation of HDFC Balanced Fund (2.418) was less than that of SBI Magnum Balanced Fund
(2.61) i.e. HDFC Balanced Fund was less volatile than SBI Magnum Balanced Fund. But on the other hand,
Standard Deviation of HDFC Growth Fund (4.21) was more than the S.D. of SBI Magnum Equity Fund
(2.52). Collectively, it can be seen that SBI Mutual Funds were having low S.D. when compared to HDFC
Mutual Funds ,thus depicting less historical volatility and less risk involvement.

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 Performance Of Mutual Funds In India : A Comparative Analysis Of SBI Mutual Funds And HDFC
3) It was found that correlation coefficient ( r ) of both HDFC Balanced Fund (0.955) and HDFC Growth Fund
(0.956) was more than that of SBI Balanced Fund (0.882) and SBI Magnum Equity Fund (0.938).
Conclusively, it can be said that HDFC Mutual Funds is highly positively related to the benchmark index ,
i.e. it is highly replicating the benchmark which is every fund’s goal.
4) Same could be said when R-Squared values of both the funds are compared, that collectively, HDFC
Mutual Funds have a higher R-Squared Value (lying between 85%-100%) thus indicating that the fund's
performance patterns have been in line with the benchmark index.
5) Beta of HDFC Balanced Fund (0.00865) was more than that of SBI Magnum Balanced Fund (0.00845) and
same is the case of HDFC Growth Fund (0.0147) with SBI Magnum Growth Fund (0.00867) . Collectively,
it could be said that Beta of whole of the SBI Mutual Funds was less than that of HDFC Mutual funds thus
indicating that their investment will be less volatile than the market and therefore less risk involvement.
6) Both the SBI Magnum Equity Fund (-0.143) and SBI Magnum Balanced Fund (-0.019) have a negative
alpha , thus depicting that they underperformed in comparison to the benchmark index.
7) It was found that the Sharpe Ratio of HDFC Balanced Fund (36.61) was more than that of SBI Balanced
Fund (26.85) , but on the other hand, Sharpe Ratio of SBI Growth Fund ( 107.61) was more than that of
HDFC Growth Fund (18.4) . Collectively, it was found that Sharpe Ratio of SBI Mutual Funds is relatively
higher than that of HDFC Mutual Funds, indicating that the fund is performing well in respect to the risk
associated with it. Hence, SBI Mutual Funds can be ranked above HDFC Mutual Funds when it comes to
desirability of the fund.
8) Treynor Ratio of HDFC Balanced Fund (10466.242) is higher than that of SBI Magnum Balanced Fund
(8293.45) , but on the other hand, Treynor ratio of HDFC Growth Fund (5271.1) is less than that of SBI
Growth Fund (31279.12). Collectively, it was found that Treynor ratio of SBI Mutual Funds as a whole is
relatively higher than that of HDFC Mutual Funds indicating that the fund’s performance in accordance to
systematic risk is high.
9) Conclusively, it was found that the SBI Mutual Funds as a whole relatively performed better than HDFC
Mutual Funds as it had higher returns ; low Standard Deviation, implying low volatility ; Low Beta Values ,
implying less risk involved ; High Sharpe Ratio, thus ranking first when it comes to the desirability of the
fund and high Treynor ratio indicating that the fund’s performance in accordance to systematic risk is high.

VII. Limitations and scope for further research

1) In the present study, only the Growth and Balanced Schemes of Mutual Funds have been taken into
consideration. A similar study could be done by including other types of schemes as well viz. , Debt Funds,
Sector-Specific Funds, etc.
2) Only one year (1st May’16-31st Apr’17) has been considered for analyzing and comparing the performances
of Mutual Funds schemes. This time period could be extended so as to view the overall performance of the
Mutual Fund Schemes.
3) Limited no. of statistical tools have been used to analyze the performance of Mutual Funds. It could be
increased so as to come down at a conclusion with precision.
4) The returns and hence the performance of the mutual fund schemes have been compared only to the returns
and performance of S&P BSE 100. Same can be done with various other benchmarks and different risk free
return which is taken as Indian Government 10 year bond rate in the present study.

References
[1]. Ms. Dhanalakshmi K – “A Comparative Analysis On Performance Of SBI And HDFC Equity, Balanced And Gilt Mutual Fund” -
Vidyaniketan Journal of Management and Research, Volume 1, Issue 2, July-December 2013
[2]. Babasab Patil- “A Project Report On The Analysis And Comparative Study Of SBI and HDFC Mutual Fund.”
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IOSR Journal of Business and Management (IOSR-JBM) is UGC approved Journal with Sl.
No. 4481, Journal no. 46879.

Tanya Verma. "Performance Of Mutual Funds In India : A Comparative Analysis Of SBI

Mutual Funds And HDFC Mutual Funds." IOSR Journal of Business and Management (IOSR-
JBM) 20.10 (2018): 36-43.

DOI: 10.9790/487X-2010013643 www.iosrjournals.org 43 | Page

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