A Comparative Study of Equity Based Mutual Fund of Reliance and HDFC

Abstract

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 provides an overview of mutual fund activity in emerging markets. It describes about their size and their asset allocation. All fund managers are not successful in the formation of the portfolio and so the study also focuses on the empirically testing on the basis of fund manager performance and analysing data at the fund-manager and fund-investor levels. The study reveled that the performance is affected by the saving and investment habits of the people and at the second side the confidence and loyalty of the fund Manager and rewards- affects the performance of the MF industry in India.

This paper was presented at the 3rd AICTE approved National Conference held at LNCT-MER, Indore on 10th October, 2009.

Keywords: Net Asset Value (NAV), Asset Under Management (AUM)

JEL Classification: G12, N25, O16