Comparative investment strategy between stock markets and major mutual funds

Abstract

We have three main sections in this report. Section 1 deals with the comparative investment strategy between Stock Markets and major Mutual Funds of India. We have taken fifteen top mutual funds of India , five from Equity Oriented Funds , Five from Debt Oriented Funds and five from Balanced Funds. We have done extensive comparative analysis between Nifty and these fifteen funds. We have used Correlation Analysis of Daily , Weekly and Monthly Returns of these fifteen funds w.r.t Nifty. Our study also included Beta Book Analysis for Mutual Funds and Portfolio Comparison Ratios (Sharpe Ratio , Treynor Ratio, Jensen Ratio and Information Ratio). Section 2 deals with the comparison between Nifty and the major Indian Sub-Indices namely Bank Nifty , CNX IT , CNX Midcap and Defty. We found that CNX IT leads it average Daily / Weekly and Monthly Returns for the last one year. The last section of this report focuses on the Analysis of the Effects of Global Indices on Nifty . We have considered five global indices from Nikkei in Japan to Dow Jones in US. We have done an extensive study of the impact of the Asian , European and US Markets on Nifty. The common thread across all these three sections is the Nifty and we have done a comparative analysis w.r.t Mutual Funds , Indian Sub-Indices and also studied the correlation with Global Indices.