Skip to main content
SpringerLink
Log in

Investment Patterns and Quarterly Trading Flexible Strategies of Indian Mutual Funds Industry

  • Chapter
  • First Online:
Flexible Work Organizations

Part of the book series: Flexible Systems Management ((FLEXSYS))

  • 1323 Accesses

Abstract

This work first provides a basic understanding of the internal business processes related to mutual fund industry of India; then decipher that all players follow translucent flexible strategies in their disclosures of portfolios and the resultant outcome explains that external actors have equal flexible strategies. The momentum profit seasonality and the relation between this seasonality and institutional ownership, suggests tax loss selling and institutional window dressing play substantial roles in driving stock return momentum. This work suggests that investors trying to optimise return momentum concentrate their focus on quarter-ending and on institutions having large chunk of securities. In contrast, internally managed funds for educational institutions and foundations, which have own asset management services are not interested in window dressing of their portfolio. Finally, this work explores the flexible strategies adopted by different mutual fund management organisations on time line of their operations.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Blau, B. M., & Fuller, K. P. (2008). Flexibility and dividends. Journal of Corporate Finance, 14(2), 133–152.

    Article  Google Scholar 

  • Brown, K. C., Harlow, W. V., & Starks, L. T. (1996). Of tournaments and temptations: An analysis of managerial incentives in the mutual fund industry. Journal of Finance, 51(1), 85–110.

    Article  Google Scholar 

  • Carhart, M. M., Kaniel, R., Musto, D. K., & Reed, A. V. (2002). Leaning for the tape: Evidence of gaming behavior in equity mutual funds. Journal of Finance, 57(2), 661–693.

    Article  Google Scholar 

  • Chen, H. Y., Gupta, M. C., Lee, A. C., & Lee, C. F. (2013). Sustainable Growth Rate. Optimal growth rate, and optimal payout ratio: A joint optimization approach, journal of banking and finance, 37(4), 1205–1222.

    Google Scholar 

  • Christoffersen, P., & Pan, X. N. (2014). Equity portfolio management using option price information. Available at SSRN 2419587.

    Google Scholar 

  • Higgins, R. C. (1977). How much growth can a Firm Afford? Financial Management, 6(3), 7–16.

    Article  Google Scholar 

  • Higgins, R. C. (1981). Sustainable growth under inflation. Financial Management, 10(4), 36–40.

    Article  Google Scholar 

  • Higgins, R. C. (2008). Analysis for financial management (9th ed.). New York, NY: McGraw-Hill Inc.

    Google Scholar 

  • Musto, D. K. (1997). Portfolio disclosures and year-end price shifts. Journal of Finance, 52(4), 1563–1588.

    Google Scholar 

  • Musto, D. K. (1999). Investment decisions depend on portfolio disclosures. Journal of Finance, 54(3), 935–952.

    Google Scholar 

  • Ortiz, C., Ramírez, G., & Sarto, J. L. (2013). Assessment of window dressing using fund returns and portfolio holdings. The Spanish Review of Financial Economics, 11(2), 85–93.

    Article  Google Scholar 

  • Schiereck, D., De Bondt, W., & Weber, M. (1999). Contrarian and momentum strategies in Germany. Financial Analysts Journal, 55(6), 104–116.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Management Studies, Indian Institute of Technology Delhi, New Delhi, India

    Manoj Kumar Sharma

  2. Dr. A.P.J. Abdul Kalam Technical University - Estb. by Govt. of UP (Formerly Uttar Pradesh Technical University, Estb. by Govt. of UP), Lucknow, India

    Deepak Kumar

Authors
  1. Manoj Kumar Sharma
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Deepak Kumar
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Manoj Kumar Sharma .

Editor information

Editors and Affiliations

  1. Department of Management Studies, Indian Institute of Technology Delhi, New Delhi, India

    Sushil

  2. University of Technology Sydney, Ultimo, New South Wales, Australia

    Julia Connell

  3. Curtin Business School (CBS), Curtin University, Perth, West Australia, Australia

    John Burgess

Appendix I: Details of Funds Used as Sample for the Study

Appendix I: Details of Funds Used as Sample for the Study

Fund

Launch

Expense ratio (%)

1-year return (%)

Net assets (Cr)

Axis Equity Fund

5-Jan-10

2.59

41.42

812.02

Axis Long-Term Equity Fund

29-Dec-09

2.74

74.31

1334.79

Birla Sun Life Dividend Yield Plus Fund

26-Feb-03

2.37

58.85

1060.83

Birla Sun Life Equity Fund

27-Aug-98

2.58

65.94

794.82

Birla Sun Life Frontline Equity Fund

30-Aug-02

2.17

48.79

5038.74

Birla Sun Life Mid Cap Fund

3-Oct-02

2.43

72.08

1116.79

Birla Sun Life MNC Fund

27-Dec-99

2.72

65.18

529.57

Birla Sun Life Tax Relief 96

29-Mar-96

2.36

58.7

1515.99

Canara Robeco Equity Diversified Fund—Regular Plan

16-Sep-03

2.62

43.6

665.17

Canara Robeco Equity Tax Saver Fund—Regular Plan

31-Mar-93

2.68

49.69

714.98

DSP BlackRock Equity Fund

29-Apr-97

2.34

61.23

2004.37

DSP BlackRock Equity Fund—Institutional Plan

1-Apr-07

2.34

62.12

2004.37

DSP BlackRock Micro Cap Fund—Regular Plan

14-Jun-07

2.78

117.12

522.43

DSP BlackRock Opportunities Fund

16-May-00

2.71

49.84

516.13

DSP BlackRock Small and Mid Cap Fund—Regular Plan

14-Nov-06

2.51

85.29

1122.22

DSP BlackRock T.I.G.E.R. Fund—Regular Plan

11-Jun-04

2.47

65.6

1212.54

DSP BlackRock Tax Saver Fund

18-Jan-07

2.66

58.81

813.77

DSP BlackRock Top 100 Equity Fund—Institutional Plan

1-Apr-07

2.27

43.71

2994.93

DSP BlackRock Top 100 Equity Fund—Regular Plan

10-Mar-03

2.27

42.95

2994.93

Franklin India Bluechip Fund

1-Dec-93

2.18

40.7

5038.23

Franklin India Flexi Cap Fund

2-Mar-05

2.33

61.31

1751.98

Franklin India High Growth Companies Fund

26-Jul-07

2.64

75.19

575.24

Franklin India Prima Fund

1-Dec-93

2.5

79.46

1412.7

Franklin India Prima Plus Fund

29-Sep-94

2.31

57.87

2322.77

Franklin India Smaller Companies Fund

13-Jan-06

2.72

102.34

587.71

Franklin India Taxshield Fund

10-Apr-99

2.5

57.99

1157.71

HDFC Capital Builder Fund

1-Feb-94

2.76

59.95

509.24

HDFC Equity Fund

1-Jan-95

2.17

71.37

12886.1

HDFC Growth Fund

11-Sep-00

2.5

49.89

1082.49

HDFC Infrastructure Fund

10-Mar-08

2.87

96.69

996.29

HDFC Long-Term Advantage Fund

2-Jan-01

2.6

59.72

986.69

HDFC Mid Cap Opportunities Fund

25-Jun-07

2.42

90.01

4496.34

HDFC Taxsaver Fund

31-Mar-96

2.25

68.03

4111.12

HDFC Top 200 Fund

3-Sep-96

2.24

58.07

11657.4

HSBC Equity Fund

10-Dec-02

2.64

38.8

538.34

ICICI Prudential Dynamic Fund—Institutional I Plan

27-Mar-06

2.23

51

4253.86

ICICI Prudential Dynamic Fund—Institutional Plan

13-May-11

2.23

50.87

4253.86

ICICI Prudential Dynamic Fund—Regular Plan

31-Oct-02

2.23

49.71

4253.86

ICICI Prudential Focused Bluechip Equity Fund—Institutional I Plan

23-May-08

2.23

46.4

5884.49

ICICI Prudential Focused Bluechip Equity Fund—Regular Plan

23-May-08

2.23

45.26

5884.49

ICICI Prudential Infrastructure Fund—Regular Plan

31-Aug-05

2.33

62.38

1498.33

ICICI Prudential Tax Plan—Regular Plan

19-Aug-99

2.46

66.97

1874.08

ICICI Prudential Top 100 Fund—Regular Plan

9-Jul-98

2.77

47.6

669.56

ICICI Prudential Top 200 Fund—Regular Plan

1-Oct-94

2.6

57.11

530.15

ICICI Prudential Value Discovery Fund—Regular Plan

16-Aug-04

2.28

88.25

4114.35

IDFC Premier Equity Fund—Regular Plan

15-Sep-05

2.29

70.96

4311.16

IDFC Sterling Equity Fund—Regular Plan

7-Mar-08

2.38

64.96

1490.17

Kotak 50

29-Dec-98

2.58

45.47

616.54

Kotak Opportunities

9-Sep-04

2.68

48.21

597.6

Kotak Select Focus Fund

11-Sep-09

2.82

56.63

527.77

L&T Equity Fund

16-May-05

2.29

52.85

2123.21

L&T India Special Situations Fund

22-May-06

2.68

54.11

649.51

L&T Tax Advantage Fund

27-Feb-06

2.51

48.23

1277.15

Reliance Banking Fund

26-May-03

2.34

69.4

1656.22

Reliance Diversified Power Sector Fund

8-May-04

2.32

70.26

2036.91

Reliance Equity Opportunities Fund

28-Mar-05

2.23

70.58

6162.18

Reliance Equity Opportunities Fund—Institutional Plan

8-Aug-07

2.23

70.92

6162.18

Reliance Focused Large Cap Fund

28-Mar-06

2.46

45.32

1036.73

Reliance Growth Fund

8-Oct-95

2.2

66.3

4483.57

Reliance Growth Fund—Institutional Plan

8-Aug-07

2.2

66.63

4483.57

Reliance Long-Term Equity Fund

26-Dec-06

2.56

99.75

949.83

Reliance Pharma Fund

5-Jun-04

2.64

65.62

809.37

Reliance Regular Savings Fund—Equity Option

8-Jun-05

2.27

57.87

2317.97

Reliance Small Cap Fund

16-Sep-10

2.75

141.22

566.21

Reliance Tax Saver Fund

21-Sep-05

2.33

101.37

2439.23

Reliance Top 200 Fund—Retail Plan

8-Aug-07

2.53

59.33

818.38

Reliance Vision Fund

8-Oct-95

2.25

70.44

2706.02

Reliance Vision Fund—Institutional Plan

8-Aug-07

2.25

71.06

2706.02

SBI Bluechip Fund

14-Feb-06

2.44

52.73

930.58

SBI Contra Fund

14-Jul-99

2.24

49.5

2026.07

SBI Emerging Businesses Fund

11-Oct-04

2.37

64.43

1342.86

SBI Infrastructure Fund

6-Jul-07

2.48

56.55

534.34

SBI Magnum Equity Fund

1-Jan-91

2.37

43.25

1114.19

SBI Magnum Global Fund

30-Sep-94

2.39

77.2

1067.96

SBI Magnum Multiplier Plus Scheme

28-Feb-93

2.34

58.93

1206.03

SBI Magnum Taxgain Scheme

31-Mar-93

2.08

59.67

4371.69

Sundaram Infrastructure Advantage Fund—Regular Plan

29-Sep-05

2.85

70.96

680.66

Sundaram Select Mid Cap Fund—Institutional Plan

15-Apr-08

1.87

83.98

1963.25

Sundaram Select Mid Cap Fund—Regular Plan

30-Jul-02

2.29

83.04

1963.25

Sundaram Taxsaver

22-Nov-99

2.41

50.08

1146.6

Tata Infrastructure Fund—Plan A

31-Dec-04

2.67

55.88

748.06

Tata Pure Equity Fund—Plan A

7-May-98

2.8

38.66

661.13

Templeton India Equity Income Fund

18-May-06

2.46

48.35

945.69

UTI Dividend Yield Fund

3-May-05

2.1

44.38

3043.74

UTI Equity Fund

18-May-92

2.13

50.68

2903.94

UTI Infrastructure Fund

7-Apr-04

2.19

61.85

1522.54

UTI Leadership Equity Fund

30-Jan-06

2.46

42.26

571.09

UTI Master Equity Plan Unit Scheme

31-Mar-03

2.22

45.04

1428.55

UTI Mastershare Fund

18-Oct-86

2.21

44.8

2498.42

UTI Mid Cap Fund

7-Apr-04

2.75

112.32

963.98

UTI Opportunities Fund

20-Jul-05

2.19

46.04

4101.36

UTI Top 100 Fund

20-May-09

2.47

44.1

597.25

Rights and permissions

Reprints and permissions

Copyright information

© 2016 Springer India

About this chapter

Cite this chapter

Sharma, M.K., Kumar, D. (2016). Investment Patterns and Quarterly Trading Flexible Strategies of Indian Mutual Funds Industry. In: Sushil, Connell, J., Burgess, J. (eds) Flexible Work Organizations. Flexible Systems Management. Springer, New Delhi. https://doi.org/10.1007/978-81-322-2834-9_19

Download citation

Publish with us

Policies and ethics

Search

Navigation