TO EVALUATE WHETHER ONE TIME INVESTMENT OR SYSTEMATIC INVESTMENT PLAN (SIP) WOULD GIVE HIGHER RETURNS AND TO FIND OUT THE TOP FIVE SCHEMES ON THE BASIS OF RETURN IN THE SAME - A CASE STUDY OF HDFC BANK

Indian Mutual fund industry has witnessed a structural transformation during the past many years. Systematic Investment Plans (SIP) is among the most successful financial innovations grown at a fairly rapid pace in emerging markets and India is no exception to it. This paper aims at evaluating the performance of SIP plans against one time investment. HDFC mutual funds return has been compared with the HDFC SIP return for the past 10 year period from April1, 2001 to Feb, 28,2011.For this purpose we have used annual returns based on NAV(Net Asset Value).CRISIL has been used as a proxy for benchmark return, while annual yields on 364-day Treasury bill as a surrogate for the Risk free rate of Return.The investment performance has been measured in terms of Sharpe’s Ratio, Treynor’s Ratio and Jensen Ratio. The Empirical result reported that SIP Plans has performed better than the one time investment. After that, from the various SIP Plans available top five plans have been found out by doing ranking of the Returns from the various kinds of SIP Plans.