A STUDY ON PERFORMANCE OF UTI MUTUAL FUNDS

CHAPTER-1

INTRODUCTION

1.1An Overview about Mutual funds:

Mutual fund industry in India started in 1963 with the formation of Unit trust of
India at the initiative of the government of India & Reserve bank.

Though the growth rate was slow but it had accelerated from the year 1987 when
Non-UTI players entered the Industry.

In the past decade India Mutual fund Industry had seen a dramatic improvement
both qualitative wise as well as quality wise before the monopoly of the market
had seen an ending phase the ASSET UNDER MANAGEMENT( AUM ) was
Rs67 billion.

The private sector entry to the fund family raised the AUM to Rs470 in March
1993 & till april-2004 it reached the highest of RS1540 Billion.

Mutual fund industry today is one of the most preferred investment options all
over the world. It plays a crucial role in the economic development of a country.
Mutual fund’s active involvement can be seen by their dominant presence in their
money market as well as capital market. They are also found very active in the
stock market by way of ensuring stability as a supplier of large funds through
steady absorption of floating stocks. Recently they entered in the arena of the
service sector in an admirable manner.

A mutual fund is an entity in the form of a trust which pools the money of large
investors and invests the same in the different investments avenues. Such
investment may be in the form of equity shares, debt securities, money market
instruments, government securities, fixed deposits, precious metals etc. These
investment securities are professionally managed on behalf of the investors, also
known as the unit holders, who hold pro-rata share of the portfolio.

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Emergency of mutual funds in the Indian scenario is a product of constraints on

the banking sector to tap the fruits of the capital market and the reluctance of the
investors to direct in complex and erratic financial market operations since
household sectors share is much larger in the country’s savings; it is utmost
essential for the government and mutual fund managers to guide their deployment
of savings in the right direction.

“A mutual fund is a professionally-managed investment scheme, usually run by

an asset management company that brings together a group of people and invests
their money in stocks, bonds and other securities”.

As an investor, you can buy mutual fund 'units', which basically represent your
share of holdings in a particular scheme. These units can be purchased or
redeemed as needed at the fund's current net asset value (NAV). These NAVs
keep fluctuating, according to the fund's holdings. So, each investor participates
proportionally in the gain or loss of the fund.

All the mutual funds are registered with SEBI. They function within the
provisions of strict regulation created to protect the interests of the investor.

The biggest advantage of investing through a mutual fund is that it gives small
investors access to professionally-managed, diversified portfolios of equities,
bonds and other securities, which would be quite difficult to create with a small
amount of capital.

Is a trust that pools the savings of number of Investors who share a common
financial goal? The money which is collected is invested in capital market
instruments as well as money market instruments such as shares, debentures &
others. It works on the principle (Small drops of water make a big ocean). Popular
due to high return< low cost & diversified risk.

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Types of Mutual funds

I) According to Maturity period:

a) Open Ended scheme
b) Closed Ended scheme
c) Dual / Interval scheme

II) Investment Objectives:

a) Growth / Equity oriented funds
b) Income / Debt oriented funds
c) Balance funds
d) Money market mutual fund

III) Other schemes:

a) Tax savings funds
b) Bond funds
c) Government / Guilt funds
d) Index funds
e) Property funds
f) Real estate funds
g) Industries specific funds
h) Aggressive growth funds

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Importance of mutual funds

 Channelizing savings for investment.

 Offering wide portfolio investment.
 Providing better yield.
 Providing Re-search services.
 Offering tax benefits
 Supporting capital market.
 Substitute for IPO.
 Simplified record keeping.
 Keeping money market alive.
 Promoting industrial development.
 Transparency.
 Providing greater affordability and Liquidity

Advantages of mutual funds:

 Professional management.
 Variety of investment.
 Diversification.
 Low investment plan.
 Tax benefit.
 Flexibility convenient.
 Liquidity.
 Competitive return.
 Regulations.
 Low transaction cost.
 Low investment cost.

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Dis-Advantages of mutual funds:

 No Assurance.
 Fees & Expenses.
 Loss of control.
 Poor performance.
 In-efficiency of cash reserves.

Key Parties Involved in Mutual funds:

 Sponsors.
 Board of trusties.
 Custodians.
 AMC (asset management company)
 The Unit holders.

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CHAPTER 2

PROFILE OF “UNIT TRUST OF INDIA”

Unit Trust of India is a financial organization in India which was created by the
UTI Act passed by the Parliament of India on 30 December 1963 under the
direction of Col. Akash Bell. He had fought very hard and intensely to get this
organization come into reality. For more than two decades it remained the sole
vehicle for investment in the capital market by the Indian citizens. In mid- 1980s
public sector banks were allowed to open mutual funds. The real vibrancy and
competition in the MF industry came with the setting up of the
Regulator SEBI and its laying down the MF Regulations in [Link] maintained
its pre-eminent place till 2001, when a massive decline in the market indices and
negative investor sentiments after the Ketan Parekh scam created doubts about the
capacity of UTI to meet its obligations to the investors. This was further
compounded by two factors; namely, its flagship and largest scheme US 64 was
sold and re-purchased not at intrinsic NAV but at artificial price and its Assured
Return Schemes had promised returns as high as 18% over a period going up to
two decades.

As of 2010, UTI has 10 million investors.

Fearing a run on the institution and possible impact on the whole market
Government came out with a rescue package and change of management in
[Link], the UTI Act was repealed and the institution was bifurcated
into two parts .UTI Mutual Fund was created as a SEBI registered fund like any
other mutual fund. The assets and liabilities of schemes where Government had to

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come out with a bail-out package were taken over directly by the Government in a
new entity called Specified Undertaking of UTI, SUUTI still holds around 11.66
percent stake in Axis Bank, 11.77 percent in ITC and 8.18 percent in L&T.

UTI Mutual Fund is promoted by the four of the largest Public Sector Financial
Institutions as sponsors, viz., State Bank of India, Life Insurance Corporation of
India, Bank of Baroda and Punjab National Bank with each of them presently
holding an 18.5% stake in the paid up capital of UTI AMC. T Rowe Price Group
Inc. (TRP Group) through its wholly owned subsidiary T Rowe Price International
Ltd. (TRP) has acquired a 26% stake in UTI Asset Management Company
Limited (UTI AMC).

Certain reforms like improving the salary from PSU levels and affecting a VRS
were carried out UTI lost its market dominance rapidly and by end of 2005, when
the new share-holders actually paid the consideration money to Government its
market share had come down to close to 10%!

A new board was constituted and a new management inducted. Systematic study
of its problems role and functions was carried out with the help of a reputed
international consultant. Fresh talent was recruited from the private market,
organizational structure was changed to focus on newly emerging investor and
distributor groups and massive changes in investor services and funds
management carried out. Once again UTI has emerged as a serious player in the
industry. Some of the funds have won famous awards, including the Best Infra
Fund globally from Lipper. UTI has been able to benchmark its employee
compensation to the best in the market, has introduced Performance Related
Payouts and ESOPs.

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The UTI Asset Management Company has its registered office at: UTI Tower,

Gnu Block, Bandar — Karla Complex, Bandar (East), Mumbai – 400 [Link] has
over 70 schemes in domestic MF space and has the largest investor base of over 9
million in the whole industry. It is present in over 450 districts of the country and
has 150 branches called UTI Financial Centers or UFCs. About 50% of the total
IFAs in the industry work for UTI in distributing its products! India Posts, PSU
Banks and all the large Private and Foreign Banks have started distributing UTI
products. The total average Assets Under Management (AUM) for the month of
June 2008 was Rs. 530 billion and it ranked fourth. In terms of equity AUM it
ranked second and in terms of Equity and Balanced Schemes AUM put together it
ranked FIRST in the industry. This measure indicates its revenue- earning
capacity and its financial strength.

On 17th June 2016, the UTI Asset Management Company had launched - UTI
Mutual Fund android.

Besides running domestic MF Schemes UTI AMC is also a registered portfolio

manager under the SEBI (Portfolio Managers) Regulations. It runs different
portfolios for its HNI and Institutional clients. It is also running a Sharia
Compliant portfolio for its offshore clients. UTI tied up with Shinsei Bank of
Japan to run a large size India-centric portfolio for Japanese investors, For its
international operations UTI has set up its 100% subsidiary, UTI International
Limited, registered in Guernsey, Channel Islands. It has branches in London,
Dubai and Bahrain. It has set up a Joint Venture with Shinsei Bank in Singapore.
The JV has got its license and has started its operations.

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History

The mutual fund industry in India started in 1963 with the formation of
Unit Trust of India, at the initiative of the Government of India and Reserve Bank
of India. The history of mutual funds in India can be broadly divided into four
distinct phases.

Mutual fund industry is obviously growing at a tremendously space with the

mutual fund industry can be broadly put into four phases according to the
development of the sector, each phase is briefly discussed below

First Phase - 1964-1987

Unit Trust of India (UTI) was established in 1963 by an Act of Parliament. It was
set up by the Reserve Bank of India and functioned under the Regulatory and
administrative control of the Reserve Bank of India. In 1978 UTI was de-linked
from the RBI and the Industrial Development Bank of India (IDBI) took over the
regulatory and administrative control in place of RBI. The first scheme launched
by UTI was Unit Scheme 1964. At the end of 1988 UTI had ₹6,700 crores of
assets under management.

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Second Phase - 1987-1993 (Entry of Public Sector Funds)

1987 marked the entry of non-UTI, public sector mutual funds set up by public
sector banks and Life Insurance Corporation of India (LIC) and General Insurance
Corporation of India (GIC). SBI Mutual Fund was the first non-UTI Mutual Fund
established in June 1987 followed by Can bank Mutual Fund (Dec 87), Punjab
National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank
of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its
mutual fund in June 1989 while GIC had set up its mutual fund in December
[Link] the end of 1993, the mutual fund industry had assets under management
of Rs.47,004 crores.

Third Phase - 1993-2003 (Entry of Private Sector Funds)

With the entry of private sector funds in 1993, a new era started in the Indian
mutual fund industry, giving the Indian investors a wider choice of fund families.
Also, 1993 was the year in which the first Mutual Fund Regulations came into
being, under which all mutual funds, except UTI were to be registered and
governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton)
was the first private sector mutual fund registered in July 1993.

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more

comprehensive and revised Mutual Fund Regulations in 1996. The industry now
functions under the SEBI (Mutual Fund) Regulations 1996.

The number of mutual fund houses went on increasing, with many foreign mutual
funds setting up funds in India and also the industry has witnessed several mergers
and acquisitions. As at the end of January 2003, there were 33 mutual funds with
total assets of Rs,1,21,805 crores. The Unit Trust of India with ₹44,541 crores of
assets under management was way ahead of other mutual funds.

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Fourth Phase - since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI
was bifurcated into two separate entities. One is the Specified Undertaking of the
Unit Trust of India with assets under management of ₹.2,835 crores as at the end
of January 2003, representing broadly, the assets of US 64 scheme, assured return
and certain other schemes. The Specified Undertaking of Unit Trust of India,
functioning under an administrator and under the rules framed by Government of
India and does not come under the purview of the Mutual Fund Regulations.

The second is the UTI Mutual Fund, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund Regulations. With the
bifurcation of the erstwhile UTI which had in March 2000 more than ₹76,000
crores of assets under management and with the setting up of a UTI Mutual Fund,
conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking
place among different private sector funds, the mutual fund industry has entered
its current phase of consolidation and growth.

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Vision and Mission Statements:

Vision:

To be the most preferred Mutual Fund.

Mission:

 To make UTI Mutual Fund:

 The most trusted brand that is admired by all stakeholders
 The largest and most efficient wealth manager with global presence
 The best-in-class customer service provider
 The most preferred employer
 The most innovative and best wealth creator
 A socially responsible organization known for best corporate governance.

Product profile

Schemes:

A) EQUITY FUND:

* Equity provides highest long- term benefits.

* The most attractive class.

FUNDS TYPE

1) UTI-Master share Unit scheme Open Ended Fund

2) UTI- Equity Fund Open ended equity
Fund
3) UTI- Top 100 fund Open Ended Fund
4) UTI- banking sector Fund Open Ended Fund
5) UTI – Energy Fund Open Ended Fund

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B) BALANCE FUNDS:

A mutual fund that buys a combination of common stock, preferred stock, bonds,
and short-term bonds, to provide both income and capital appreciation while
avoiding excessive risk.

FUNDS TYPE

a) UTI- Unit Linked Insurance Plan Hybrid: Debt Oriented

b) UTI- C.R.T.S- 1981 Hybrid: Debt Oriented

3) UTI- Children’s career Balanced Plan Hybrid: Debt Oriented

c) DEBT FUNDS:

* More liquid than FDs

* They are more tax efficient

* You don’t lose even a day’s growth

* Your returns can be higher

* They offer greater flexible

FUNDS TYPE

1) UTI- Money Market fund Open Ended Liquidity Fund

2) UTI- Bond fund Debt: Medium term

3) UTI- G. Sec- Investment Plan Open Ended Gilt Fund

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d) SPECIALITY SCHEMES:

A mutual fund that is meant for special purposes, like Mahila Debt funds, Oldage
Retirement plans etc.

e) UTI-ETF (Exchange traded funds)

FUNDS TYPE

1) UTI Nifty Exchange traded fund ETF

2) UTI Sensex Exchange traded fund ETF

COMPETITOR’S OF UNIT TRUST OF INDIA

 Kotak gold ETF

 Reliance Pharma Fund
 ICICI Prudential FMCG
 HDFC Balance Fund
 Reliance Banking Fund
 SBI Equity Opportunity Fund

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Milestones achieved / awards received

*UTI Equity Fund has won the Morningstar India Fund Awards 2013 in the Best
Large Cap Equity Fund Category.

* UTI mutual fund wins 8 ICRA mutual fund awards 2012 awarded star fund
house of the year –debt.

*UTI Opportunities Fund has been ranked ‘A Seven Star Fund’ by ICRA/ICRA
online Ltd. and has been awarded the Gold Award for 'Best Performance' in the
category of 'Open Ended Equity-Large Cap ' for one year period ending December
31, 2011. The award for UTI Opportunities Fund indicates the Best Performance
within the stated category, which had a total of 55 similar schemes, including this
scheme.

*UTI- Treasury Advantage Fund- Institutional Plan has been ranked ‘A Seven
Star Fund’ by ICRA/ICRA online Ltd. and has been awarded the Gold Award for
'Best Performance' in the category of 'Open Ended Ultra Short Term-IP ' for one
year period ending December 31, 2011. The award for UTI- Treasury Advantage
Fund- Institutional Plan indicates the Best Performance within the stated category,
which had a total of 8 similar schemes, including this scheme.

*UTI- Gilt Advantage Fund- Long Term has been ranked ‘A Seven Star Fund’ by
ICRA/ICRA online Ltd. and has been awarded the Gold Award for 'Best
Performance' in the category of 'Open Ended Gilt ' for one year period ending
December 31, 2011. The award for UTI- Gilt Advantage Fund- Long Term
indicates the Best Performance within the stated category, which had a total of 25
similar schemes, including this scheme.

* UTI- India Lifestyle Fund has been ranked ‘A Five Star Fund’ by ICRA/ICRA
online Ltd. indicating performance among the top 4.6% in the category of 'Open
Ended Equity - Dynamic' for one year period ending December 31, 2011. The
award for UTI India Lifestyle Fund indicates Performance within the stated
category, which had a total of 103 similar schemes, including this scheme.

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* UTI- MNC Fund has been ranked ‘A Five Star Fund’ by ICRA/ICRA online
Ltd. indicating performance among the top 4.6% in the category of 'Open Ended
Equity - Dynamic' for one year period ending December 31, 2011. The award for
UTI MNC Fund indicates Performance within the stated category, which had a
total of 103 similar schemes, including this scheme.

*On the occasion Mr. Amandeep Chopra, Head-Fixed Income, UTI Asset
Management Company Ltd., said, “The consistent efforts of the fund management
team has culminated in UTI Mutual Fund winning Star Fund House of the Year
award-Debt. UTI Mutual Fund is a process oriented fund house and strives to give
investors the best risk adjusted returns.

* Mr. Anoop Bhaskar, Head of Equity, UTI AMC said,” UTI Mutual Fund
follows a sound investment policy across market cycles and maintaining
consistency to purpose has yielded results”.

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Market share:

A company's market share is its sales measured as a percentage of an industry's

total revenues.

Formula:

Total Revenue of UTI Mutual fund X 100

Total Revenue of the Mutual Fund industry

=106309/1926000x100

“Market share of UTI Mutual fund =5.51%”

However UTI is now dropped to sixth position with an AUM size of ₹ 1,06,309
crore.

Corporate Social Responsibility:

The provision of Corporate Social Responsibility is not applicable to the company

(UTI Mutual fund).

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CHAPTER-3

REVIEW OF LITERATURE AND RESEARCH

DESIGN

Mutual funds attracted the interests of academicians, researchers and financial

analysts mostly since 1986. A number of articles have been published in financial
dailies like economic times, business line and financial express, periodicals like
capital market, Business India etc., and in professional and research journals.
Literature Review on performance evaluation of mutual fund is enormous.
Various studies have been carried out in India and abroad to evaluate the
performance of mutual funds schemes from time to time. A few research studies
that have influenced substantially in preparing the thesis are discussed below in
this chapter.

Review of Literature

This is followed by Sharpe (1966) reward to variability measure, which is average

excess return on the portfolio divided by the standard deviation of the portfolio.
Sharpe (1966) developed a composite measure of performance evaluation and
imported superior performance of 11 funds out of 34 during the period 1944-63.

Michael C. Jensen (1967) conducted an empirical study of mutual funds in the

period of 1954-64 for 115 mutual funds. The results indicate that these funds are
not able to predict security prices well enough to 30 outperform a buy the market
and hold policy. The study ignored the gross management expenses to be free.
There was very little evidence that any individual fund was able to do
significantly better than which investors expected from mere random chance.

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Jensen (1968) developed a classic study; an absolute measure of performance

based upon the Capital Asset Pricing Model and reported that mutual funds did
not appear to achieve abnormal performance when transaction costs were taken
into account. Carlson (1970) evaluated the risk-adjusted performance and
emphasized that the conclusions drawn from calculations of return depend on the
time period, type of fund and the choice of benchmark. Carlson essentially
recalculated the Jensen and Shape results using annual data for 82 common stock
funds over the 1948-67 periods. The results contradicted both Sharpe and Jensen
measures.

John McDonald (1974) examined the relationship between the stated fund
objectives and their risks and return attributes. The study concludes that, on an
average the fund managers appeared to keep their portfolios within the stated risk.
Some funds in the lower risk group possessed higher risk than funds in the most
risky group.

James R.F. Guy (1978) evaluated the risk-adjusted performance of UK

investment trusts through the application of Sharpe and Jensen measures. The
study concludes that no trust had exhibited superior performance compared to the
London Stock Exchange Index.

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Deepak Agrawal (2011) in the study “Measuring Performance of Indian Mutual

Funds” touched the development of Indian capital market and deregulations of the
economy in 1992. Since the development of the Indian Capital Market and
deregulations of the economy in 1992 there have been structural changes in both
primary and secondary markets. Mutual funds are key contributors to the
globalization of financial markets and one of the main sources of capital flows to
emerging economies. Despite their importance in emerging markets, little is
known about their investment allocation and strategies. This article provided an
overview of mutual fund activity in emerging markets. It described about their
size and asset allocation. The paper is a process to analyze the Indian Mutual Fund
Industry pricing mechanism with empirical studies on its valuation. The data is
also analyzed at both the fund-manager and fund-investor levels. The study
revealed that the performance is affected by the saving and investment.

Need for the study

Mutual Fund is one of the most preferred investment alternatives for the small
investors as it offers an opportunity to invest in a diversified and professionally
managed portfolio at a relatively low cost. Over the past decade, mutual funds
have increasingly become the investor’s vehicle of choice for long-term investing.
In the mutual industry UTI is having leading and largest market share and also one
of the most favorable mutual funds investment company for the investors, In this
context there is necessity to make study, on what basis UTI mutual funds are hot
cake for the small investors and also to study the NAV of the mutual funds with
reference to UTI.

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Objectives of the study

1. To study the trends and prospects of Indian mutual funds Industry.

2. To study and analyze the UTI mutual funds.

3. To find out the NAV of Selected schemes of UTI Mutual funds

4. To study the reasons for NAV fluctuations.

Scope of the study

The present study is confined to select schemes of UTI mutual funds for the
period of 5 years.

Methodology

To achieve the objectives, the data has been collected through only Secondary
data.

Data collection

Secondary data:

The study has included scheme wise performance appraisal of various mutual
funds. Data pertaining to the performance of the funds were drawn from
secondary sources through data published by AMFI, [Link],
[Link] and [Link], [Link], [Link], mutual funds books,
journals and websites of other mutual funds.

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LIMITATIONS OF THE STUDY

 Only selected funds are included in the study.

 Results can’t be guaranteed.
 Research is carried purely on secondary data.
 Secondary data which based on UTI Mutual fund data.
 Time constraint.

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CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

1) NAV of UTI Equity Mutual Funds:

a) UTI- Banking Sector Fund :

Year NAV Increase (%) Decrease (%)

2016-17 82 41 _
2015-16 58.39 _ 12
2014-15 65.91 32 _
2013-14 47.03

2012-13 N/F
Table 4.1

Sources: [Link]

Note: N / F means NAV is not found.

INTERPRETATION:

2016-17: No Dividend declaration has been taken place and also there is huge
cash infusion into banking sector (Demonetization) so NAV of mutual fund has
been raised by 41% in the this year as compared to previous year. 2015-16: fund
has distributed dividend and capital gain to its shareholders due to this there is a
downward to the NAV say around 12%. 2014-13: In this year there is no payment
of dividend to the shareholders and market conditions were favorable to the
banking sector. 2013-14: during this time there was no increase or decrease in
NAV because no NAV history.

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b) UTI- Master share Scheme unit:

Year NAV Increase (%) Decrease (%)

2016-17 100.72 18 _
2015-16 85.31 _ 8
2014-15 93.22 43 _
2013-14 65.43

2012-13 N/F
Table 4.2

Sources: [Link]

INTERPRETATION:

2016-17: In this period Mutual funds have not distributed to its shareholders and
taxes are low so we can witness there is 18% increase in NAV.2015-16: we can
see there is a 8% decline in NAV due to payments of dividend.2014-15: In this
period Mutual funds have not distributed to its shareholders and taxes are low so
we can witness there is 43% increase in NAV.2013-14: during this time there was
no increase or decrease in NAV because no NAV history.

c) UTI Equity Funds:

Year NAV Increase (%) Decrease (%)
2016-17 114.61 16 _
2015-16 96.62 _ 5
2014-15 102.94 43 _
2013-14 71.83
2012-13 N/F
Table 4.3

Sources: [Link]

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INTERPRETATION:

2016-17: In this year there is No payment of capital gain and tax on this fund so
there is growth of 16% in this fund. During the year 2015-16 Fund has made a
payment of capital gain so there is a decline in NAV of equity fund. In 2014-15
we can see the 43% of up in NAV because no tax and there is less expenses ratio
is involved on the fund.2013-14 during this time there was no increase or decrease
in NAV because no NAV history

d) UTI Top 100 Fund:

Year NAV Increase (%) Decrease (%)
2016-17 114.61 16 _
2015-16 96.62 _ 5
2014-15 102.94 43 _
2013-14 71.83

2012-13 N/F
Table 4.4

Sources: [Link]

Interpretation:

2016-17: In this year there is payment of capital gain and tax on this fund
so there is growth of 16% in this fund. In 2015-16 Fund has made a
payment of capital gain so there is a 5% of decline in NAV of equity fund.
In 2014-15 we can see the 43% of up in NAV because no tax and there is

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less expenses ratio is involved on the fund.2013-14 during this time there
was no increase or decrease in NAV because no NAV history.

e) UTI Dividend Yield Fund:

Year NAV Increase (%) Decrease (%)
2016-2017 56 22 _
2015-16 45.87 _ 8

2014-15 49.54 35 _
2013-14 37

2012-13 N/F
Table 4.5

Sources: [Link]

Interpretation:

2016-17: In this year there is no payment of capital gain and tax on this
fund so there is growth of 22% in this fund. In 2015-16 Fund has made a
payment of capital gain so there is 8% of decline in NAV of equity fund.
2014-15 we can see the 35% of up in NAV because no tax and there is less
expenses ratio is involved on the fund.2013-14 during this time there was
no increase or decrease in NAV because no NAV history.

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2) NAV of debt Mutual Funds:

a) UTI- Money Market fund:

Year NAV Increase (%) Decrease
(%)
2016-17 4363.54 7 _
2015-16 4087.43 7 _
2014-15 3796.43 8 __
2013-14 3504.23 9 _

2012-13 3223.61
Table 4.6

Sources: [Link]

Interpretation:

2016-17: In this year there is no payment of capital gain and tax on this
fund so there is growth of 7% in this fund In 2015-16: In this year there is
No payment of capital gain and tax on this fund so there is growth of 7%
in this fund 2014-15 In this year there is no payment of capital gain and
tax on this fund so there is growth of 8% in this fund.

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b) UTI G- Sec- Investment Plan

Year NAV Increase (%) Decrease (%)

2016-17 N/F _ _
2015-16 N/F _ _
2014-15 N/F _ _
2013-14 N/F _ _

2012-13 N/F _ _
2011-12 22 _ 1
2010-11 22.22 _ _
Table 4.7

Sources: [Link]

Interpretation:

There is no NAV with regard to this fund except in the year of 2011 and 2010
moreover there is a decline in the NAV in the year of 2011.

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c) UTI Bond fund:

Year NAV Increase (%) Decrease (%)

2016-17 49.26 9 _
2015-16 45 4 _
2014-15 42.89 _ _
2013-14 N/F

2012-13 N/F
Table 4.8

Sources: [Link]

Interpretation:

In 2016-17 there is No payment of dividend to its shareholders so fund has

been increased by 9% In 2015-16: There is No payment of dividend to its
shareholders so fund has been increased by 4%. In the year of 2014-15 as
it is declared its NAV for the first time so there is no up and down in the
fund.

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d) UTI Gilt advantage Funds:

Year NAV Increase (%) Decrease (%)

2016-2017 22 16 _
2015-16 19 6 _
2014-15 18 _ _
2013-14 N/F

2012-13 N/F
Table 4.9

Sources: [Link]

Interpretation:

 2016-17: There is No payment of dividend to its shareholders so fund has

been increased by 16% and in the year of 2015-16 There is No payment of
dividend to its shareholders so fund has been increased by 6% In 2014-15
As it’s declared its NAV for the first time so there is no up and down in
the fund.

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e) UTI Monthly Income Scheme:

NAV Increase (%) Decrease (%)

2016-2017 33.17 10 _
2015-16 29.62 3 _
2014-15 28.46 _ _
2013-14 N/F

2012-13 N/F
Table 4.10

Sources: [Link]

Interpretation:

2016-17: There is No payment of dividend to its shareholders so fund has

been increased by 10%. In 2015-16: There is No payment of dividend to
its shareholders so fund has been increased by 3%. 2014-15as it’s declared
its NAV for the first time so there is no up and down in the fund.

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3) NAV of ETF (Exchange Traded Funds):

a) UTI Sensex Exchange traded fund

year NAV Increase (%) Decrease (%)

2016-17 302 18 _
2015-16 255 _ _
2014-15 N/F _ _
Table 4.11

Interpretation:

2016-17: during this period market conditions were favorable to this fund and
there was huge return from the BSE index due to there was a positive growth
(18%) in the fund. In the year of 2015-16: As it’s declared its NAV for the first
time so there is no up and down in the fund

b) UTI Nifty Exchange traded fund

Year NAV Increase (%) Decrease (%)

2016-2017 937.38 20 _
2015-16 779.59 _ _
2014-15 N/F _ _
Table 4.12

Sources: [Link]

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Interpretation:

2016-17: during this period market conditions were favorable to this fund
and there was huge return from the Nifty index due to there was a positive
growth (20%) in the fund.2015-16 As it’s declared its NAV for the first
time so there is no up and down in the fund.

c) UTI Gold ETF

Year NAV Increase (%) Decrease (%)

2016-17 2630 2
2015-16 2691 103 _
2014-15 2438 _ 6
2013-14 2618

Table 4.13

Sources: [Link]

Interpretation:

2016-17: In this fund there is a 2% of decline in the NAV due to lower rate
in gold prices and payments of Interest and high rate of taxes.2015-16:
There is a positive growth in this funds around 103% that huge difference
from the preceding year. In the year of 2014-15 Due to violation in gold in
prices fund has been declined to 6% in this year.2013-14 The NAV history
is not found.

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CHAPTER-5:
SUMMARY OF FINDINGS, SUGGESTIONS
AND CONCLUSIONS

5.1 Summary of findings:

A mutual fund is a professionally-managed investment scheme, usually
run by an asset management company that brings together a group of
people and invests their money in stocks, bonds and other securities. It’s a
trust that pools the savings of number of Investors who share a common
financial goal.
The money which is collected is invested in capital market instruments as
well as money market instruments such as shares, debentures & others.
It works on the principle (Small drops of water make a big ocean).

Equity funds are performing really well in terms of NAV & Capital
appreciation of funds namely UTI- Banking Sector fund, UTI- Equity fund
and UTI-Top 100 fund.
Debt funds have been increasing in their NAV of funds that means they
are not paying Interest and dividends to their shareholders.
ETF-Nifty Exchange Traded fund is also showing positive performance
and there is ups and down in NAV of UTI-Gold ETF as compared to other
funds.
Since I found that UTI-Equity mutual funds are the best schemes to invest
if they are bold enough to take risk so that they could expect capital gain,
less in expenses cost and tax advantage in the longer term.

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5.2 Suggestions

Well after conducting project report on “A study on performance of

UTI mutual funds” I have got few suggestions for which I would like to
suggest to the company they are mentioned below:

 The company should compete with these competitors because it

has come down to 6th position in the mutual fund industry.
 The company should facilitate the trading classes or sessions for
the investors for teaching the investment skill so that company
would expect number of investors in return.
 Last but not the list company should continue to develop the
competency advantage against its competitors for tapping the high
market share.

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Conclusion:

A mutual fund is set up in the form of a trust, which comprises a sponsor, trustees,
Asset Management Company (AMC) and custodian. The trust is established by a
sponsor or more than one sponsor who is like the promoter of a company. The
trustees of the mutual fund hold its property for the benefit of the unit holders. The
Asset Management Company (AMC), approved by SEBI, manages the funds by
making investments in various types of securities. The custodian, who is
registered with SEBI, holds the securities of various schemes of the fund in its
custody. The trustees are vested with the general power of superintendence and
direction over AMC. They monitor the performance and compliance of SEBI
Regulations by the mutual fund.

Equity Scheme primarily aims at securing for the unitholders capital appreciation
by investing the funds of the scheme in equity shares and convertible and non-
convertible bonds/ debentures of companies with good growth prospects and
money market instruments.

Last but not the least I would conclude by saying that UTI mutual fund is the best
Investment tool for invest if Investor is willing to take calculated risk so that it
could make their investment double in terms of capital gain or total return etc.

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Bibliography
Reference:

 Fund magazines of UTI schemes

 Broachers of various funds
 AMFI booklet

Webliography:

[Link]

[Link]

[Link]

[Link]

[Link]

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