Institute Of Management Development And Research Page 38 The data that has been

Institute of management development and research page

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Institute Of Management Development And Research Page 38
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The data that has been collected is secondary data from the company’s records, monthly published factsheet, internet, previous project reports. 3.4 SCOPE OF THE STUDY The Mutual Fund industry is laying an important role in the industrial and economic growth of the country. A Mutual fund uses the money collected from investors to buy those assets, which are specifically permitted by its stated investment objective. Thus, an Equity Fund would buy mainly Equity assets-ordinary shares, preference shares, warrants etc. A bond fund would mainly buy debt instruments such as debentures, bonds or government securities. It is these assets, which are owned by the investors in the same proportions as their contribution bears to the total contribution of all investors put together. Volatility measures help investors to know a fund’s riskiness. It also helps them to select appropriate fund as per investment objective. These measures of return are often used to evaluate the performance of a portfolio. These ratios help to make the performance of one portfolio comparable to that of another portfolio by making an adjustment for risk. The ratios help to analyze various situations affecting the funds and are also useful for judging credit worthiness of a particular fund. Volatility analysis helps to appraise efficiency of performance in relation to those other companies in the same industry. Techniques of risk and return can be used as an effective mechanism to provide suggestion to an investor of HDFC Mutual Fund. Hence it is beneficial to the managers as well. 3.5 LIMITATIONS OF THE STUDY The study is based on secondary data. The analysis is based on only one company. The study is restricted to limit duration (2 months). Risk management is the wide topic and it’s difficult to analyze thoroughly with in the short period. Analysis is based on Equity Schemes only. There are only five schemes considered for the study. Institute Of Management Development And Research Page 39
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Analysis is based on Equity Schemes only. Debt Schemes are not considered because of time constraint. The study is of HDFC Regular Plan Growth Funds Performance. CHAPTER IV DATA ANALYSIS & INTERPRETATION Institute Of Management Development And Research Page 40
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4.1 TO STUDY THE CALCULATION OF VOLATILITY MEASURES MEASURING RISK Since assuming risk is inherent to the investment process, mutual fund investors must be adequately and consistently rewarded for the risks they assume. Prudent research means searching for fund managers who consistently produce returns justifying the risks they have taken. Modern portfolio theory research developed a number of statistics that make it possible to more precisely quantify the relationship between risk and return. These measurements help determine Funds volatility (Standard Deviation).
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  • Fall '17
  • Mahvish ali

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