*Associate Professor,
**Associate Professor and Ex Dean,
The present study encompasses the appraisal of mutual fund schemes and considers only those whose performance has been rated by credit rating agency. Household savings play an important role in domestic capital formation. Only a small part of the household savings in India is channelised to the capital market. Under sector allocation, MF companies preferred banking, finance, current assets, OGPR, pharmaceuticals and housing. It is observed that funds concentrated their portfolio in FMCG and Infrastructural areas.
The top three sectors in which the majority of funds were allocated are ICICI bank, RIL, Oil, Housing, Indian Railways, Finance Corporation Ltd., and Bharti Airtel. Study clearly shows that all MFs have set a pattern for allocation in banking and financial sector.
HDFC Prudence Fund-Growth has largest fund size (Rs. 1,787.25 crore) and also recorded highest returns (15.97%) from date of inception. The SBI Magnum Balance Fund-Growth outperformed with (17.56%) returns, over a period of five years and its fund size is Rs. 290.12 crore. During the last three years, DSP Black Rock Balance Fund-Growth recorded maximum returns (7.39%) among all.
It may be noted that under the balanced fund, fund size is not so important but the cost does matter. It is observed that with the moderate dividend yield, and comparatively high market capitalisation (Rs. 66,137.89 crore), Kotak Balance-Growth has: highest P/E ratio-20.48; dividend yield-1.31%; and P/B ratio-4.75; 40.01% under top five holdings; outperformed over the long period.
