Literature review

The following is a brief account of research articles published in books, financial dailies, magazines and research journals by academicians, professionals and journalists explaining the concepts of mutual funds, its importance, features, schemes, investment pattern, method of reading a mutual fund prospectus, how to choose a scheme and significance of IMFI in the economic development of India. A brief account of the research works of Indian academicians are as follows: Research papers
Sondhi H J and Jain P K (2005) examined 17 public and 19 private sector mutual fund equity schemes. The mean and median returns for the aggregate period (1993-2002) were lower than the returns on 364 days treasury bills, and higher than the BSE 100 index. Alliance Equity fund was the top performer and Canbonus and LIC Dhanvikas(I) were the worst performers. They hypothesized that majority of the sample schemes earned returns better than the market. Private equity schemes had superior performance due to its popularity; fund management practices, well-researched stock selection and timing skills. More than three-fourth of public sector schemes were unable to achieve better returns in spite of higher investor confidence associated with high safety. The funds did not show consistency in performance.

Muthappan P K and Damodharan E (2006) evaluated 40 schemes for the period April 1995 to March 2000. The study identified that majority of the schemes earned returns higher than the market but lower than 91 days Treasury bill rate. The average risk of the schemes was higher than the market. 15 schemes had an above average monthlyreturn. Growth schemes earned average monthly return. The risk and return of the schemes were not always in conformity with their stated investment objectives. The sample schemes were not adequately diversified, as the average unique risk was 7.45 percent with an average diversification of 35.01 percent. 23 schemes outperformed both in terms of total risk and systematic risk. 19 schemes with positive alpha values indicated superior performance. The study concludes that, the Indian Mutual Funds were not properly diversified.

Sanjay Kant Khare (2007) opined that investors could purchase stocks or bonds with much lower trading costs through mutual funds and enjoy the advantages of diversification and lower risk. The researcher identified that, with a higher savings rate of 23 percent, channeling savings into mutual funds sector has been growing rapidly as retail Muthappan P K & Damodharan E , Risk-Adjusted Performance Evaluation of Indian Mutual Funds Schemes, Finance India, Vol. XX(3), (September 2006), pp.965-983.Sanjay Kant Khare 2007, Mutual Funds: A Refuge for Small Investors, Southern Economist, (January 15, 2007), pp.21-24.Chapter IIinvestors were gradually keeping out of the primary and secondary market. Mutual

funds have to penetrate into rural areas with diversified products, better corporate governance and through introduction of financial planners.

Bhavin A Patel*1, Gaurav Lodha2 and Vadher RN3( 2011) had pursued a detailed study in which he indicated that A proper evaluation measure will get rid of the confusion and help investors to decide the relatively better investment in various mutual fund schemes. Thisstudy observed that HDFC Prudence Fund-Growth, Canara Robeco Balance - Growth, DSP BlackrockBalance Fund Growth; are the top three funds on the basis of CAGR for the last five years. These funds have also outperformed the CRISIL Balance Fund Index over the period of last5 years. Canara Robeco Balanced Growth Scheme is relatively more volatile with highest standard deviation, Beta as well as Treynor ratio. The study observed that Canara Robeco Balance Growth isthe most aggressive hybrid mutual fund whereas Escort Balance Fund - Growth is relatively least a more defensive fund. (Journal of Advances in Developmental Research ISSN: 0976-4704 (Print), e-ISSN: 0976-4844 (Online)J.Adv.Dev.Res. Volume 2, No.2, December 2011)

Dr Binod Kumar Singh (2012) has evaluated that that most of respondents are still confused about the mutual funds and have not formed any attitude towards the mutual fund for investment purpose. It has been observed that most of the respondents having lack of awareness about the various function of mutual funds. Moreover, as far as the demographic factors are concerned, gender, income and level of education have significantly influence the investors attitude towards mutual funds. On the other hand the other two demographic factors like age and occupation have not been found influencing the attitude of investors towards mutual funds. As far as the benefits provided by mutual funds are concerned, return potential and liquidity have been perceived to be most attractive by the invertors followed by flexibility, transparency and affordability. Apart form the above, in India there is a lot of scope for the growth of mutual fund (International Journal of Research in Management ISSN 2249-5908 Issue2, Vol. 2 (March-2012) )

Magazines and Articles Money Today (june 2012) has anlaysed various small cap, mid cap nd large cap mutual funds . It also has briefed about the trends and recent developments of mutual funds in India MUTUAL FUND ( advanced ) NCFM module gives a depth study of Mutual funds in India , various rules and regulations associated with it. It also brings about awareness of how to invest in mutual funds