Financial Management a Wheel to Financial Performance of Local Governments in Uganda: A Case Study of Tororo Municipal Council

Abstract

The present paper investigates the performance of growth-oriented equity schemes for the period from January 2013 to October 2016 of transition economy. Monthly NAV of these schemes have been used to calculate the returns from the fund schemes. By using CAPM model. The schemes of mutual funds chosen for study are Equity fund, of HDFC and SBI, Equity fund (magnum-200). The performance of these funds is function of market conditions, but good research always pay of better result. My research concluded that return of HDFC mutual fund is better than that of SBI mutual funds. A mutual fund is an investment vehicle that pool in the monies of several investors and collectively invests in either the equity market or the debt market or both. But traditionally we are not a hard buyer, so we don’t follow very systematic rule like drugs, first go through series of procedure and then one qualified practioner prescribed the dose. But this is not the case for general financial products but in case of Mutual fund one avail this facility by way of mutual fund advisory services. Because the structure of mutual fund is design in this manner and track record of investments in Mutual Funds are expected to grow at the bench mark rate of 15%-20% in India in the coming years. Keeping that in the background it is important to know and analyze if the investments have performed below, above or as per expectation. Mutual fund is an investment vehicle that pools the monies of many investors, and collectively invests this amount in either the equity market or the debt and money market, or both, depending upon the objective of. the scheme This means one can access either the equity or the debt market, or both, with investing directly now mutual do innovation into objective of fund by introducing liquid fund by putting some amount in this fund money slowly move to desired fund without losing any benefit. In study phase one I analyze two schemes of HDFC mutual fund and two schemes of SBI mutual fund that are growth fund schemes and balance fund schemes I found both the schemes are doing well in term of return but in 2011 both the scheme of both the mutual fund house see bad time and not beating the bench mark returns and in case of growth funds scheme of HDFC is not doing well in 2012 to 2017 but in same period SBI fund of same scheme doing better. But in case balance fund scheme after 2011 both are competing one and another in period principal is safe in case of SBI and rate of returns is high in case of HDF fund of balance fund scheme and in case of second phase of my study is conducted in Delhi and Meerut areas in different public sector and private banks. By asking close ended and open-ended questioners. We observed that despite being a lot of bombarding of continuous advertising by Mutual fund houses still investors of tier two cities are not believing on private mutual fund but in case of metro like Delhi are more aware and eager to invest in private and PSU mutual funds. In our study we touch student’s business man and working people of middle class. And found that people are hungry to invest in. Therefore, the study was conducted to compare the performance on the investment of mutual funds with HDFC and SBI. To conduct the study, the methodology adopted are Beta, Alpha measure, Sharpe Ratio, Treynor Ratio, and Jensen’s measure. Overall the study conducted revealed that investment in HDFC (Growth, Balanced) and in SBI (Growth, Balance) schemes have better return in long run there is very little impact of brand but in case short time investors are losing their money not for the bad performance of schemes but due to wrong timing and a lot of investors belonging to tire two cities like Meerut believed on traditional instruments like FD, RD, and in metro like Delhi they had good information about mutual and willing to invest in private house of mutual fund and as well PSU houses mutual funds.