Equity Mutual Funds Project

EQUITY MUTUAL FUNDS

AT BAJAJ

MANORANJAN PATRA

In partial fulfillment of requirement for PGDM Bharatiya Vidya Bhavan,

Mr. Sambit MohantyBranch Manager Bajaj Capital, Bhubaneswar

BHUBANESWAR KENDRA

BHAVAN’S CENTRE FOR COMMUNICATION & MANAGEMENT

1

PROJECT REPORT ON

EQUITY MUTUAL FUNDS

AT BAJAJ CAPITAL, BHUBANESWAR

Submitted By:

MANORANJAN PATRABM0308BM048

In partial fulfillment of requirement for PGDM Bharatiya Vidya Bhavan, Bhubaneswar Kendra, ORISSA

Under the guidance of

Mr. T.N. Shukla Faculty

Bajaj Capital, Bhubaneswar Bharatiya Vidya Bhavan

BHUBANESWAR KENDRA


Bhubaneswar Kendra, ORISSA

Mr. T.N. ShuklaFaculty

Bharatiya Vidya Bhavan


39,KHARVEL NAGAR,UNIT

STUDENT

I hereby undertake and declare that this submission is my original work and, to the best of my knowledge and belief, it contains no material previously published or written by another person nor material which has been accepted for the award of any other degree or diploma of any Institute or other University of higher learning , except where due acknowledgement has been made in the text.

Signature

Name of Student: Manoranjan Patra

2

39,KHARVEL NAGAR,UNIT-III,BBSR-751001,ORISSA

JUNE-2009

STUDENT DECLARATION

I hereby undertake and declare that this submission is my original work and, to the best of my knowledge and belief, it contains no material previously published or written by another person nor

been accepted for the award of any other degree or diploma of any Institute or other University of higher learning , except where due acknowledgement has been made in

Name of Student: Manoranjan Patra

751001,ORISSA

I hereby undertake and declare that this submission is my original work and, to the best of my knowledge and belief, it contains no material previously published or written by another person nor

been accepted for the award of any other degree or diploma of any Institute or other University of higher learning , except where due acknowledgement has been made in

Registration No. BIM0308BM048

Certificate by guide

This is to certify that work entitled Project title” piece of work done by Student’s name Manoranjanguidance and supervision for the partial fulfillment of degree of PGDBM, Bharatiya Vidya Bhavan, Bhubaneswar.

To the best of my knowledge and belief the thesis:

a. Embodies the work of the candidate himself.b. Has duly been completed.c. Fulfills the requirements of the rules and regulations relating to the

summer internship of the institute. d. Is up-to the standard both in

being referred to the

3

Registration No. BIM0308BM048

Certificate by guide

This is to certify that work entitled Project title” Equity Mutual ne by Student’s name Manoranjan Patra under my

guidance and supervision for the partial fulfillment of degree of PGDBM, Bharatiya Vidya Bhavan, Bhubaneswar.

the best of my knowledge and belief the thesis:

Embodies the work of the candidate himself.Has duly been completed.Fulfills the requirements of the rules and regulations relating to the summer internship of the institute.

to the standard both in respect to contents and language for being referred to the examiner.

Mutual Funds” is a Patra under my

guidance and supervision for the partial fulfillment of degree of PGDBM,

Fulfills the requirements of the rules and regulations relating to the

respect to contents and language for

Signature of the Faculty Guide

Name of Faculty guide Date:

CERTIFICATE OF APPROVALThis is to certify that the report entitled:

Submitted by Mr. MANORANJAN PATRABharatiya Vidya Bhavan, Bfulfillment of the requirements for the award of the degree of Diploma in Management (PGDM)her under the able guidance of Bhavan, Bhubaneswar Kendra, Orissa

4

Signature of the Faculty GuideName of Faculty guide: Mr. .T.N. Shukla

CERTIFICATE OF APPROVALThis is to certify that the report entitled:

“EQUITY MUTUAL FUNDS”

In BAJAJ CAPITAL LIMITED

BHUBANESWAR

MANORANJAN PATRA (Regn.No BIMO308BMO48)havan, Bhubaneswar Kendra, Orissa towards partial

fulfillment of the requirements for the award of the degree of Post Graduate Diploma in Management (PGDM) is a bona fide record of the work carried out by her under the able guidance of Mr.T.N.SHUKLA, faculty, BharBhavan, Bhubaneswar Kendra, Orissa.

(Regn.No BIMO308BMO48), hubaneswar Kendra, Orissa towards partial

Post Graduate is a bona fide record of the work carried out by

faculty, Bharatiya Vidya

VICE PRINCIPAL

ACKNOWLEDGEMENT

With regard to my Project with Equity

to thank each and every one who offered help, guideline and

support whenever required.

First and foremost I would like to express gratitude

to Manager BAJAJ CAPITAL and other staffs for their support

and guidance in the Project work.

guide, Mr. Sambit Mohanty

timely suggestions.

Mr.T.N.Shukla of Bharatiya Vidya B

encouragement and

project.

5

DIRECTOR

ACKNOWLEDGEMENT

With regard to my Project with Equity Mutual Funds I would like


support whenever required.



Project work. I am extremely grateful to my

Mr. Sambit Mohanty for his valuable guidance and

I would like to thank my faculty guide

r.T.N.Shukla of Bharatiya Vidya Bhavan for constant

ncouragement and valuable guidance & support for this

DEAN

Funds I would like




I am extremely grateful to my

for his valuable guidance and

I would like to thank my faculty guide

for constant

valuable guidance & support for this

MANORANJAN PATRA

Executive summary

Chapter I Objective Scope Limitation

Chapter II

Introduction Company Profile Product profile

Chapter III

Review Research Methodology

Chapter IVMutual funds(Description & Classification)

6

PATRA

Contents

ObjectiveScope Limitation

IntroductionCompany ProfileProduct profile

Review Of LiteratureResearch Methodology

Mutual funds(Description & Classification)

Chapter V

Equity Mutual Funds And Its Performance How To Select an Equity Fund Data Analysis and Interpretation Findings Conclusion

Annexure

Bibliography

7

Equity Mutual Funds And Its PerformanceHow To Select an Equity FundData Analysis and InterpretationFindingsConclusion

Bibliography

Equity Mutual Funds And Its Performance

EXECUTIVE SUMMARY

Researcher had undergone thispartial fulfillment of Post Graduate Diploma in Management of the BCCM, Bhubaneswar. The project assigned to me

This project has done on equity mutualmutual funds, which reveals the

People’s knowledge about

People’s choice

Performance of

Cause of choosing equity based mutual funds.

The principal methodology adopted in the project was conclusive surveys, which was conducted with the help of questionnaires and in depth interview with the same for the collection of primary data, and Internet, previous project report, magazines etc., were used for secondary data.

8

EXECUTIVE SUMMARY

had undergone this project in, Bajaj Capital Ltd. Bhubaneswar, as a Post Graduate Diploma in Management of the BCCM,

Bhubaneswar. The project assigned to me is –“EQUITY MUTUAL

roject has done on equity mutual funds and specially on equity or growth which reveals the –

knowledge about mutual fund.

choice about investment portfolio in mutual fund.

erformance of equity mutual funds in the market.

Cause of choosing equity based mutual funds.

The principal methodology adopted in the project was conclusive surveys, which was conducted with the help of questionnaires and in

erview with the same for the collection of primary data, and Internet, previous project report, magazines etc., were used for secondary data.

Ltd. Bhubaneswar, as a Post Graduate Diploma in Management of the BCCM,

MUTUAL FUNDS”.

equity or growth

about investment portfolio in mutual fund.

The principal methodology adopted in the project was conclusive surveys, which was conducted with the help of questionnaires and in

erview with the same for the collection of primary data, and Internet, previous project report, magazines etc., were used for secondary data.

Chapter – 1

OBJECTIVES

SCOPE

LIMITATIONS

9

OBJECTIVES

LIMITATIONS

The overall objectives of this project are as under

To know market status of equity funds.

To know performance of

To know the cause of

To know how equity funds work.

To know the best equity fund available in the market

To undergo through the Summer Training for the partial fulfillment of the

PGDM program of BCCM, Bhubaneswar

10

OBJECTIVES

objectives of this project are as under:

market status of equity funds.

performance of equity funds.

To know the cause of choosing equity funds.

To know how equity funds work.

To know the best equity fund available in the market.

undergo through the Summer Training for the partial fulfillment of the

PGDM program of BCCM, Bhubaneswar.undergo through the Summer Training for the partial fulfillment of the

All the fingers of a hand are not the same.

income, expenditure, saving habits, environment, etc.

differs from each other as per the above factors. Due to this the financial

requirement and ability to get the

person so the financial market especially the Mutual Fund market caters to a vast

area from each of these aspects stated above.

This project is based on the Equi

analysis on the equity or growth mutual funds

on secondary data and it can be used to have the exact figure of investment in

Mutual Funds, especially in equity funds

making by knowing the opinion of customer, the management ca

accordingly. The proper analysis on the equity fu

these funds will help the layman to

maximizing the percentage of equity funds in his portfolio.

11

Scope

All the fingers of a hand are not the same. People differ from each other

income, expenditure, saving habits, environment, etc. Their requirement also

from each other as per the above factors. Due to this the financial

requirement and ability to get the investment requirement differ from person to

financial market especially the Mutual Fund market caters to a vast

area from each of these aspects stated above.

project is based on the Equity funds, which is a brief

equity or growth mutual funds. As the project report is fully based

and it can be used to have the exact figure of investment in

in equity funds. Also the report can be used for decision

making by knowing the opinion of customer, the management can take decision

proper analysis on the equity funds and the past performance of

will help the layman to take decision for investing in mutual funds and

of equity funds in his portfolio.

other upon their

Their requirement also

from each other as per the above factors. Due to this the financial

requirement differ from person to

financial market especially the Mutual Fund market caters to a vast

ty funds, which is a brief

report is fully based

and it can be used to have the exact figure of investment in

. Also the report can be used for decision

n take decision

nds and the past performance of

take decision for investing in mutual funds and

I. There is vast informatio

at a time in the report.

II. Some comparisons can

III. New funds are entering the market and boo

cannot be given

IV. As mutual funds performance is calculated by comparing the current

records with its pas

one cannot do research by

12

Limitations

There is vast information about mutual funds, which can

at a time in the report.

Some comparisons cannot be done due to the nature of the funds.

New funds are entering the market and booming, so their past records

not be given for their non-existence in the market.

As mutual funds performance is calculated by comparing the current

records with its past performances of a long period (1 yr.,3 yr.,5 yr,)

research by giving only current data.

n about mutual funds, which cannot be given

nature of the funds.

ming, so their past records

As mutual funds performance is calculated by comparing the current

(1 yr.,3 yr.,5 yr,)

CHAPTER-II

INTRODUCTION

COMPANY PROFILE

PRODUCT PROFILE

13

INTRODUCTION

COMPANY PROFILE

PRODUCT PROFILE

Mutual fund is a trust that pools the savings of a number of investors who share a common financial goal. This pool of money is invested in accordance with a stated objective. The joint ownership of the fund is thus “Mutual”, i.e. the fund belongs to all icollected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proporti

Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest A Mutual Fund is an investment tool that allows small investors access to a well-diversified portfolio of equities, bonds and other securities. Each shareholder participates in the gain or loss of the fund. Units are issued and can be redeemed as needed. The funds Net Asset value (NAV) is determined each day.

Equity mutual funds are also known as stock mutual funds. Equity mutual funds invest pooled amounts of money in the stocks of public companies. Stocks represent part ownership, or equity, in companies, and the aim of stoccompanies increase over time. Stocks are often categorized by their market capitalization (or caps), and can be classified in three basic sizes: small, medium, and large. Many mutual funds invest primarily in companies of one of these sizes and are thus classified as largeor small-cap funds.

Equity fund managers employ different styles of stock picking when they make investment decisions for their portfolios. Some fund managers use a value appsearching for stocks that are undervalued when compared to other similar companies. Another approach to picking is to look primarily at growth, trying to find stocks that are growing faster than their competitors, or the market as a whole.building a portfolio of both growth and value stocks. Since equity funds invest in stocks, they have the potential to generate more returns. On the other hand they carry greater risks too.

14

Introduction

Mutual fund is a trust that pools the savings of a number of investors who share a common financial goal. This pool of money is invested in accordance with a stated objective. The joint ownership of the fund is thus “Mutual”, i.e. the fund belongs to all investors. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion the number of units owned by them.

Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest A Mutual Fund is an investment tool that allows small investors

ersified portfolio of equities, bonds and other securities. Each shareholder participates in the gain or loss of the fund. Units are issued and can be redeemed as needed. The funds Net Asset value (NAV) is determined each day.

Equity mutual funds are also known as stock mutual funds. Equity mutual funds invest pooled amounts of money in the stocks of public companies. Stocks represent part ownership, or equity, in companies, and the aim of stock ownership is to see the value of the companies increase over time. Stocks are often categorized by their market capitalization (or caps), and can be classified in three basic sizes: small, medium, and large. Many mutual funds

s of one of these sizes and are thus classified as large

Equity fund managers employ different styles of stock picking when they make investment decisions for their portfolios. Some fund managers use a value appsearching for stocks that are undervalued when compared to other similar companies. Another approach to picking is to look primarily at growth, trying to find stocks that are growing faster than their competitors, or the market as a whole. Some managers buy both kinds of stocks, building a portfolio of both growth and value stocks. Since equity funds invest in stocks, they have the potential to generate more returns. On the other hand they carry greater risks too.

Mutual fund is a trust that pools the savings of a number of investors who share a common financial goal. This pool of money is invested in accordance with a stated objective. The joint

nvestors. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciations realized

Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest A Mutual Fund is an investment tool that allows small investors

ersified portfolio of equities, bonds and other securities. Each shareholder participates in the gain or loss of the fund. Units are issued and can be redeemed as needed. The

Equity mutual funds are also known as stock mutual funds. Equity mutual funds invest pooled amounts of money in the stocks of public companies. Stocks represent part

k ownership is to see the value of the companies increase over time. Stocks are often categorized by their market capitalization (or caps), and can be classified in three basic sizes: small, medium, and large. Many mutual funds

s of one of these sizes and are thus classified as large-cap, mid-cap

Equity fund managers employ different styles of stock picking when they make investment decisions for their portfolios. Some fund managers use a value approach to stocks, searching for stocks that are undervalued when compared to other similar companies. Another approach to picking is to look primarily at growth, trying to find stocks that are growing faster

Some managers buy both kinds of stocks, building a portfolio of both growth and value stocks. Since equity funds invest in stocks, they have the potential to generate more returns. On the other hand they carry greater risks too.

Though still now the financial crisis is going on except the past week,market had a bad time going onmore returns to the customers.slowly and steadily becoming the most preferable investment equity funds is growing.

Instead of market downside, more and more people are now investors are entering the market. Household saving contribute about 75 to 80 percent to the level of national savings. From about 10 percent saving of GDP in 1950, domestic savings have increased to 27.40 percentGDP has grown substantially and with that, the level of savings too has grown in absolute and relative terms. The level of savings can be stepped up to 30 percent or even more of GDP, provided investors are assured of a reasonable rfiscal incentives .Mutual funds, especially the equity funds investment market.

15

Though still now the financial crisis is going on except the past week,market had a bad time going on, the equity mutual funds are continuously giving more and more returns to the customers. So the equity funds are on the peak now. As mutual funds are slowly and steadily becoming the most preferable investment now a day, the preference for

Instead of market downside, more and more people are now investors are entering the market. Household saving contribute about 75 to 80 percent to the level of national savings. From about 10 percent saving of GDP in 1950, domestic savings

27.40 percent of GDP in 2004-2005. During these five decades, the level of GDP has grown substantially and with that, the level of savings too has grown in absolute and relative terms. The level of savings can be stepped up to 30 percent or even more of GDP, provided investors are assured of a reasonable real rate of return and are offered adequate fiscal incentives .Mutual funds, especially the equity funds will one of the leaders in the

Though still now the financial crisis is going on except the past week, the stock the equity mutual funds are continuously giving more and

eak now. As mutual funds are , the preference for

Instead of market downside, more and more people are now investing; new investors are entering the market. Household saving contribute about 75 to 80 percent to the level of national savings. From about 10 percent saving of GDP in 1950, domestic savings

decades, the level of GDP has grown substantially and with that, the level of savings too has grown in absolute and relative terms. The level of savings can be stepped up to 30 percent or even more of GDP,

eal rate of return and are offered adequate will one of the leaders in the

History and Corporate Profile of Bajaj Capital Limited

Bajaj Capitals Limited was incorporated in 1964 at New Delhi. It started as an investment

consultancy company rendering advice for profitable investments in Company Deposits and

Shares. Since then the organizations has grown by leaps and bounds,

network of 65 self owned offices and thousands of Broker Associates spread across the country

enable them to be one of the India's largest retail fund mobiliser for debit instruments

years , they have also became India’s b

deposits/debentures/bonds/units/mutual funds/gift

corporate deposits etc. They are also providing Car finance, Insurance

specialized NRI services, Financial Planning etc. services for our clients. They added a new

dimension to the industrial finance in India in each in early 60's by innovating

instrument: Company Deposits.

About 5,000 prospective investors daily visit

seek our expert investment guidance. Bajaj Capital started its operations from New Delhi. After

its success in New Delhi, it extended its activities to oth

Bombay, Calcutta and Madras in order to cater to the needs of lakhs of investors and thousands

of corporate clients. After its success in these metropolitan cities, Bajaj Capital opened offices in

other important cities of India like Bangalore, Ahmedabad, Hyderabad, Luckno

Ghaziabad, Noida, Faridabad, etc.. In addition to its offices at these places Bajaj Capital has

about 8,000 representatives Broker Associates in all the nooks and corners of India.

In order to help its non

corporate and other securities in India,

(UK) Limited.

16

Company profile




Shares. Since then the organizations has grown by leaps and bounds, at present they have a


enable them to be one of the India's largest retail fund mobiliser for debit instruments

years , they have also became India’s best known corporate fund raiser in the shape of fixed

deposits/debentures/bonds/units/mutual funds/gift-hedged securities, equity shares/inter

They are also providing Car finance, Insurance – both life and general,

ervices, Financial Planning etc. services for our clients. They added a new

dimension to the industrial finance in India in each in early 60's by innovating

About 5,000 prospective investors daily visit our various offices throughout the country to


it extended its activities to other metropolitan cities of India i.

and Madras in order to cater to the needs of lakhs of investors and thousands


other important cities of India like Bangalore, Ahmedabad, Hyderabad, Luckno



In order to help its non-resident Indian investor clients, to make investments in

e and other securities in India, Bajaj Capital has its associates in UK, ie. Bajaj Capital




at present they have a


enable them to be one of the India's largest retail fund mobiliser for debit instruments. And in 34

est known corporate fund raiser in the shape of fixed

hedged securities, equity shares/inter-

both life and general,

ervices, Financial Planning etc. services for our clients. They added a new

dimension to the industrial finance in India in each in early 60's by innovating a new financial

our various offices throughout the country to


er metropolitan cities of India i.e.

and Madras in order to cater to the needs of lakhs of investors and thousands


other important cities of India like Bangalore, Ahmedabad, Hyderabad, Lucknow, Chandigarh,



to make investments in

ssociates in UK, ie. Bajaj Capital

Bajaj Capital has NRI clients in USA, UK, Wes

Australia, Canada, France, New Zealand, Mauritius, Thailand, Singapore, UAE, Kuwait, Dubai,

Egypt, Saudi Arabia, etc. and is providing them a complete range of services.

Now after 34 years of its wo

nooks and corners of India and also has presence in important countries of the world through its

Broker Associates and Clients.

Bajaj Capital is one of the largest

financial instruments like Companies Fixed Deposits, Unit trust of India's Schemes, Mutual

Funds, Bonds, Debentures, Small Savings Schemes, Equities, etc.

They have one of the largest “retail network” among all the financial intermed

country today with 63 full fledged offices manned by about 300 financial experts and a strong

team of over 6000 agents/representatives strategically located in every nook and corner of India.

Over the last 34 years of operations they have dev

of over 5,25,000 individually investors and nearly 2000 institutional investors.

In addition to investment planning and services, they are offering to their clients a

complete range of “personal Financial Planning” pr

Finance against property/Securities, etc.

1. Bajaj Capital Limited

SEBI approved Merchant Bankers and Investment Consultants/Dealer on OTC Exchange of

India.

2. Bajaj Capital Financial Services

(Member, Delhi Stock Exchange Association Ltd.)

3. Bajaj Capital (UK) Limited

(Investment Services for NRIs & FIIs)

17

Bajaj Capital has NRI clients in USA, UK, West Germany, Italy, Netherland, Denmark,


Egypt, Saudi Arabia, etc. and is providing them a complete range of services.

Now after 34 years of its working, Bajaj Capital is geographically present in all the


Bajaj Capital is one of the largest mobiliser of Public savings in India in shape of various


Funds, Bonds, Debentures, Small Savings Schemes, Equities, etc.

They have one of the largest “retail network” among all the financial intermed



Over the last 34 years of operations they have developed a loyal and dedicated clientele

of over 5,25,000 individually investors and nearly 2000 institutional investors.


complete range of “personal Financial Planning” products including Insurance, Auto Finance,

Finance against property/Securities, etc.

Main Group of Companies


Bajaj Capital Financial Services

(Member, Delhi Stock Exchange Association Ltd.)

(Investment Services for NRIs & FIIs)

t Germany, Italy, Netherland, Denmark,


rking, Bajaj Capital is geographically present in all the


ia in shape of various


They have one of the largest “retail network” among all the financial intermediaries in the



eloped a loyal and dedicated clientele


oducts including Insurance, Auto Finance,


Meaning of the BAJAJ CAPITAL Logo

Our logo depicts Lord Ganesha who is the source of all our values and ethics in business.

o The large ears of Lord Ganesha remind us to hear more. We listen carefully to our clients to understand their needs.

o The weight of the trunk on the mouth symbolises silence. We work silently, without blowing our own trumpet.

o The long trunk symbolises conprovide the best investment opportunities for our clients.

o The heavy posture of Ganesha symbolises stability. We help our clients to attain financial stability through wise investments.

o Lord Ganesha is knownWe emulate His example and try our best to help our clients attain prosperity by proper financial planning.

o Our logo has a yellow background. Yellow is the colour of gold, which symbolises wealth. ABrihaspati, the guru and counsellor of the Gods. We offer our clients sage counsel to make their wealth grow.

o The letters are inincessant activity. It symbolises our aggressive quest for your wellhappiness.

o The white streak represents the trunk of Lord Ganesha. White is the colour of satva guna, and implies our selfless commitment to your life

Bajaj Capital Limited is the first Corporate Body in India engaged in financial

Services/merchant banking activities. It was incorporated in 1963.

Bajaj Capital is the first Merchant Banking company in India which introduced new

financial instruments, i.e. “Company Deposits” in early 1960's First “ Fixed Deposit Receipt”

and “Application Form” were designed by them on behalf of Oberoi Hotels EIL Limited

(Formely known as Associated Hotels of India Ltd.)

Bajaj Capital is the first Merchant Banking company

Banking activities i.e. Financial Supermarket way back in 1963: managing public issues,

18

Meaning of the BAJAJ CAPITAL Logo


The large ears of Lord Ganesha remind us to hear more. We listen carefully to our clients to understand their needs. The weight of the trunk on the mouth symbolises silence. We work silently, without blowing our own trumpet. The long trunk symbolises continuous exploration. We explore all avenues to provide the best investment opportunities for our clients. The heavy posture of Ganesha symbolises stability. We help our clients to attain financial stability through wise investments. Lord Ganesha is known as the remover of obstacles and bestower of prosperity. We emulate His example and try our best to help our clients attain prosperity by proper financial planning. Our logo has a yellow background. Yellow is the colour of gold, which symbolises wealth. According to Vedic lore, it is also the colour associated with Brihaspati, the guru and counsellor of the Gods. We offer our clients sage counsel to make their wealth grow. The letters are in red. Red is the colour of rajas, “ symbolising power and

nt activity. It symbolises our aggressive quest for your well

The white streak represents the trunk of Lord Ganesha. White is the colour of satva guna, and implies our selfless commitment to your life-long happiness

First Time First


Services/merchant banking activities. It was incorporated in 1963.


. “Company Deposits” in early 1960's First “ Fixed Deposit Receipt”


(Formely known as Associated Hotels of India Ltd.)

Bajaj Capital is the first Merchant Banking company in India to start full fledged Merchant



The large ears of Lord Ganesha remind us to hear more. We listen carefully to our

The weight of the trunk on the mouth symbolises silence. We work silently,

tinuous exploration. We explore all avenues to

The heavy posture of Ganesha symbolises stability. We help our clients to attain

as the remover of obstacles and bestower of prosperity. We emulate His example and try our best to help our clients attain prosperity by

Our logo has a yellow background. Yellow is the colour of gold, which ccording to Vedic lore, it is also the colour associated with

Brihaspati, the guru and counsellor of the Gods. We offer our clients sage counsel

“ symbolising power and nt activity. It symbolises our aggressive quest for your well-being and

The white streak represents the trunk of Lord Ganesha. White is the colour of long happiness



. “Company Deposits” in early 1960's First “ Fixed Deposit Receipt”


in India to start full fledged Merchant


dealing in Equity/Preference shares, bonds, Fixed Deposits, Inter Corporate Deposits, Tax

Savings schemes, mutual Fund Schemes,

Bajaj Capitals is the first Merchant Banking company in India to open branches throughout

the country. Now, we have 65 branches, 7000 sub

in every nook and corner of India.

Bajaj Capital is the first and the only Retail Merchant Banking company in India where about

7000 to 8000 prospective investors visit everyday in its various offices.

Bajaj Capital is the first Merchant Banking /Financial services Company which has a team of

300 professionals like Chartered Accountants, MBA's, Bankers, Financial Experts, etc.

Bajaj Capital is the first Merchant Banking company which has its in

Department in order to protect the interests of its investor clients.

Bajaj Capitals is the first comp

legal aid to its clients.

Bajaj Capital is the first Merchant Banking Company in India to open an office in United

Kingdom – Bajaj Capital (UK) Ltd.

“ WE ARE ALWAYS STRIVING TO GIVE THE BEST SERV

FACILITIES TO OUR CORPORATE AND INDIVIDUAL CLIENTS.”

“With Us Sky Is not The Limit, It is the beginning”

19


Savings schemes, mutual Fund Schemes, etc.


the country. Now, we have 65 branches, 7000 sub- brokers and 5 lacs regular investor clients

in every nook and corner of India.

the only Retail Merchant Banking company in India where about

7000 to 8000 prospective investors visit everyday in its various offices.


Chartered Accountants, MBA's, Bankers, Financial Experts, etc.

Bajaj Capital is the first Merchant Banking company which has its in-house Credit Rating

Department in order to protect the interests of its investor clients.

Bajaj Capitals is the first company which has its in-house Legal Cell which provides free


Bajaj Capital (UK) Ltd.

“ WE ARE ALWAYS STRIVING TO GIVE THE BEST SERVICES AND


“With Us Sky Is not The Limit, It is the beginning”



brokers and 5 lacs regular investor clients

the only Retail Merchant Banking company in India where about


Chartered Accountants, MBA's, Bankers, Financial Experts, etc.

house Credit Rating

house Legal Cell which provides free


ICES AND


WHO'S WHO IN BAJAJ CAPITAL LIMITED

SL. DESIGNATION

1. Chairman

2. Managing Director

3. Vice President(operations&

4. Director and Chief Executive

5. Director & Head(Sub-Broker Division)

6. Director & Head(Systems Developments)

7. Financial Controller

8. Manager(Institutional Investment)

9. Company Secretary

10. Manager(Money Market)

11. Manager(Accounts & taxation)

12. Manager (EDP)

13. Manager (Administration)

14. Manager(HRD)

15. Regional Co-ordination Manager




19. Regional Manager (South)

20. Regional Manager (West)

21. Regional Manager (East)

22. Regional Manager (East)

23. Manager ( Sub-Brokers Division)

20

WHO'S WHO IN BAJAJ CAPITAL LIMITED

DESIGNATION Name

Mr.K.K. Bajaj

Mr. Rajiv Bajaj

Vice President(operations& new projects) Mr. Sanjiv Bajaj

Director and Chief Executive Mr. Anil K. Chopra

Broker Division) Mr. C.P. Bhatia

Director & Head(Systems Developments) Mr. Ravi Kapoor

Mr. B.B. Suri

Manager(Institutional Investment) Mr. Vijay Pal Singh

Mr. Raman Bawa

Manager(Money Market) Mr. Ranpreet Singh

Manager(Accounts & taxation) Mr. P. K. Birla

P) Mr. Rakesh Sharma

Manager (Administration) Col. J.S. Oberoi

Ms. Anita Gambhir

ordination Manager Mr. Raj K. Dhall

ordination Manager Mr. Rajiv Sharma

ordination Manager Mr. R.S. Barthwal

ordination Manager Mr. K.S. Rana

er (South) Mr. George Thomas

Regional Manager (West) Mr. Harish Sabharwal

Mr. Biman Chakravarthy

Mr. P.K. Mitra

Brokers Division) Mr. Manish Chopra

Mr. Rajiv Bajaj

Mr. Sanjiv Bajaj

Anil K. Chopra

Mr. C.P. Bhatia

Mr. Ravi Kapoor

Mr. B.B. Suri

Mr. Vijay Pal Singh

Mr. Raman Bawa

Mr. Ranpreet Singh

Mr. P. K. Birla

Mr. Rakesh Sharma

Col. J.S. Oberoi

Ms. Anita Gambhir

Mr. Raj K. Dhall

harma

Mr. R.S. Barthwal

Mr. K.S. Rana

Mr. George Thomas

Mr. Biman Chakravarthy

Mr. P.K. Mitra

Mr. Manish Chopra

8 Reasons why to invest through Bajaj Capital Limited

1. Old Establishment – Bajaj Capital is one of the oldest and largest Investment Consultancy

Company in India in operation since 1964. In fact, companies Fixed Deposit line was

introduced for the first time in India in early 1960's by Bajaj Capital.

2. Vast and Modern Infrastructu

over the country. It covers all Metros and other important financial centres. They have a team

of over 300 highly experienced employees including MBAs, Cas, Financial Analysts,

Investment Consultants, Law Graduates and Stock Market experts. Our operations are fully

computerised.

3. SEBI Authorisation – Bajaj Capital is authorised by Securities & Exchange Board of India

(SEBI), a Government body specially created for investor's protection. As

notification SEBI has warned that “Dealing with unregistered Brokers is risky and SEBI will

not be in a position to entertain any complaints against such unregistered Brokers.

4. After Sales Service – “Service with a smile” is their motto. Their

specially trained to provide highly personalised and professional advice to their investor

clients. Their role does not end when the client has made the investment. They are known for

their excellent “After Sales Services”.

5. Vast Variety of “Schemes”

individual requirements of their clients keeping in view their return expectation. They are full

fledged “Financial Supermarket” offering advice to their clients for i

following schemes :--

A) Fixed Deposit with Government Companies and other rep

(choice of over 200 companies)

B) Mutual Funds – Both Growth and Income Schemes

C) Unit trust of India – All Schemes

21

Reasons why to invest through Bajaj Capital Limited

Bajaj Capital is one of the oldest and largest Investment Consultancy


introduced for the first time in India in early 1960's by Bajaj Capital.

Vast and Modern Infrastructure – Bajaj Capital has a vast network of 65 offices spread all



Consultants, Law Graduates and Stock Market experts. Our operations are fully

Bajaj Capital is authorised by Securities & Exchange Board of India

(SEBI), a Government body specially created for investor's protection. As



“Service with a smile” is their motto. Their investment Consultant are



their excellent “After Sales Services”.

-- They offer the largest variety of investment schemes suited to


fledged “Financial Supermarket” offering advice to their clients for investment in the

A) Fixed Deposit with Government Companies and other reputed Public limited companies

choice of over 200 companies)

Both Growth and Income Schemes

All Schemes

Reasons why to invest through Bajaj Capital Limited

Bajaj Capital is one of the oldest and largest Investment Consultancy


Bajaj Capital has a vast network of 65 offices spread all



Consultants, Law Graduates and Stock Market experts. Our operations are fully

Bajaj Capital is authorised by Securities & Exchange Board of India

(SEBI), a Government body specially created for investor's protection. As per recent



investment Consultant are



They offer the largest variety of investment schemes suited to


nvestment in the

uted Public limited companies

D) New issues of Share/Debenture

E) Taxable and Tax-free Bonds

F) Portfolio Advisory Services for high

G) Trading in UTI 1964 and Public Sector Bonds

H) Investment Advisory Services for Non

6) Investor Protection – They have a full fledged investor protection cell which currently

monitors/analyses performance and health of companies helping them give unbiased

investment advice.

7) Large number Of Satisfied Clients

vast and dedicated clientele of around 52,500 individual investor spread all over India. The

list of their clients includes cream of Indian Society retired Governor

Bureaucrats, and top Corporate Executives, Army & Civil officers and Housewives etc..

Around 2,000 Trusts and institutions also value their expert professional advice and deal

through them.

22

D) New issues of Share/Debenture

Bonds

F) Portfolio Advisory Services for high net worth clients.

G) Trading in UTI 1964 and Public Sector Bonds – Taxable and Tax free

H) Investment Advisory Services for Non-Resident Indians.

They have a full fledged investor protection cell which currently


Large number Of Satisfied Clients – Last but not the least, their biggest strength is their


list of their clients includes cream of Indian Society retired Governor



They have a full fledged investor protection cell which currently


Last but not the least, their biggest strength is their


list of their clients includes cream of Indian Society retired Governors, Diplomats,



Mission, Aims & Objectives of Bajaj Capital

Bajaj Capital's Mission Statement

The focus of our organization is to be the Services. It is our continuous Endeavour to be a achieve their financial goals.

Our Aims

To serve our clients with utmost dedication and integrity so that we exceed their expectations and build enduring relationships.

To offer unparalleled quality of service through complete knowledge of products, constant innovation in services and use of the latest technology.

To always give honest and unbiased financial advice and earn our clients' everlasting trust.

To serve the community by educating individuals on the merits of Financial Planning and in turn help shape a financially strong society.

To create value for all stake holders by ensuring profitable growth. To build an amicable environment that accords respect to every individual and permits

their personal growth. To utilize the power of teamwork to function as a

organization.

SEBI RegistrationBajaj Capital Limited is a Category Registration No. INM000010544, valid through September 30, 2008.

Professionals at your serviceBajaj Capital's Investment Banking Services are delivered by the Investment Banking Group, a crack team of highly qualified, experienced and motivated professionals.

Comprehensive ServiceWe provide a range of highly specialized services that needs. We are capable of handling everything, right from basic paperwork to devising creative, innovative and sophisticated solutions to meet the unique problems of our clients.

Strong Research BaseBajaj Capital is a strongly research

23

Mission, Aims & Objectives of Bajaj Capital

Statement

The focus of our organization is to be the most useful, reliable and efficient provider of Financial Services. It is our continuous Endeavour to be a trustworthy advisor to our clients, helping them

To serve our clients with utmost dedication and integrity so that we exceed their expectations and build enduring relationships.To offer unparalleled quality of service through complete knowledge of products,

n in services and use of the latest technology.To always give honest and unbiased financial advice and earn our clients' everlasting

To serve the community by educating individuals on the merits of Financial Planning and financially strong society.

To create value for all stake holders by ensuring profitable growth.To build an amicable environment that accords respect to every individual and permits

To utilize the power of teamwork to function as a family and build a seamless

Strength of Bajaj Capital

Bajaj Capital Limited is a Category - I Merchant Banker registered with SEBI, bearing Registration No. INM000010544, valid through September 30, 2008.

Bajaj Capital's Investment Banking Services are delivered by the Investment Banking Group, a crack team of highly qualified, experienced and motivated professionals.

We provide a range of highly specialized services that are customized to meet your specific needs. We are capable of handling everything, right from basic paperwork to devising creative, innovative and sophisticated solutions to meet the unique problems of our clients.

Bajaj Capital is a strongly research-driven organization. The Bajaj Capital Centre for Investment

provider of Financial to our clients, helping them

To serve our clients with utmost dedication and integrity so that we exceed their

To offer unparalleled quality of service through complete knowledge of products,

To always give honest and unbiased financial advice and earn our clients' everlasting

To serve the community by educating individuals on the merits of Financial Planning and

To build an amicable environment that accords respect to every individual and permits

family and build a seamless

I Merchant Banker registered with SEBI, bearing

Bajaj Capital's Investment Banking Services are delivered by the Investment Banking Group, a

are customized to meet your specific needs. We are capable of handling everything, right from basic paperwork to devising creative, innovative and sophisticated solutions to meet the unique problems of our clients.

driven organization. The Bajaj Capital Centre for Investment

Research comprises highly qualified and talented professionals who constantly monitor the market and collect, collate, analyses and disseminate valuable inforclose coordination with the Investment Banking Group, providing vital inputs on a daily basis.

Unparalleled ReachWith over 120 offices in 50 cities and a network of over 10,000 Advisor Associates, we assure you a pan-India reach.

Unblemished ReputationBajaj Capital has an unblemished track record of over 40 years, and is among one of the most respected Financial Services companies in the country.

Excellent Industry RelationshipsBajaj Capital enjoys extremely cordial relationships wmarkets such as banks, insurance companies, mutual fund houses, PF Trusts, educational trusts, etc.

The company is also given the “THE BEST WORKPLACES 2008”

WORKPLACE AWARD”.

24

Research comprises highly qualified and talented professionals who constantly monitor the market and collect, collate, analyses and disseminate valuable information. BCCIR works in close coordination with the Investment Banking Group, providing vital inputs on a daily basis.

With over 120 offices in 50 cities and a network of over 10,000 Advisor Associates, we assure

Bajaj Capital has an unblemished track record of over 40 years, and is among one of the most respected Financial Services companies in the country.

Bajaj Capital enjoys extremely cordial relationships with major institutions in the financial markets such as banks, insurance companies, mutual fund houses, PF Trusts, educational trusts,

The company is also given the “THE BEST WORKPLACES 2008” & “THE SMART

Research comprises highly qualified and talented professionals who constantly monitor the mation. BCCIR works in

close coordination with the Investment Banking Group, providing vital inputs on a daily basis.

With over 120 offices in 50 cities and a network of over 10,000 Advisor Associates, we assure

Bajaj Capital has an unblemished track record of over 40 years, and is among one of the most

ith major institutions in the financial markets such as banks, insurance companies, mutual fund houses, PF Trusts, educational trusts,

& “THE SMART

We offer a wide spectrum of Investment Banking Services to our clients in the Private and Public sectors.

IPOs/FPOsAs part of our Issue Management services, we:

Lead Manage public offerings of Equity and Debt under Book Built as well as Fixed Price Methods

Provide issue management services Syndicate, underwrite and distribute the securities to a nationwide client base We have consistently been one of the larges

income securities.

Private Placements/Preferential Issues

As part of our Private Placement and Preferential Issues services, we:

Advice our clients on regulatory norms and compliance requirements Structure and design the instrument(s) along with their valuations Draft the necessary resolutions and shareholders agreements/documents Identify the prospective investors Negotiate the terms of investment

Takeovers/Acquisitions/Consolidation

We provide advisory services to our clients on potential takeover targets with the objective of taking over of the management/assets/businesses/brands. This includes

Working out takeover strategies a Offering advice on regulatory and compliance norms Working out takeover/acquisition costs and budget Drafting advertisements, offer documents, share purchase agreements/documents Offering advice on funding options and post

Buy-backs and De-listing Buy-back and de-listing are reverse corporate interventions in the capital of the enterprise. Our services in this regards includes:

Advising our clients on necessity, need and requirement of buycapital market conditions ,working out optimal buyadvice on the most suitable mode and method of buyand compliance norms .

25

Services of Bajaj Capital

We offer a wide spectrum of Investment Banking Services to our clients in the Private and Public

As part of our Issue Management services, we:

Lead Manage public offerings of Equity and Debt under Book Built as well as Fixed

Provide issue management services Syndicate, underwrite and distribute the securities to a nationwide client base We have consistently been one of the largest mobilisers of funds for debt and fixed

Private Placements/Preferential Issues

As part of our Private Placement and Preferential Issues services, we:

Advice our clients on regulatory norms and compliance requirements sign the instrument(s) along with their valuations

Draft the necessary resolutions and shareholders agreements/documents Identify the prospective investors Negotiate the terms of investment

Takeovers/Acquisitions/Consolidation

ices to our clients on potential takeover targets with the objective of taking over of the management/assets/businesses/brands. This includes

Working out takeover strategies a€“ friendly as well as hostile Offering advice on regulatory and compliance norms Working out takeover/acquisition costs and budget Drafting advertisements, offer documents, share purchase agreements/documents Offering advice on funding options and post-acquisition consolidation stra

listing listing are reverse corporate interventions in the capital of the

enterprise. Our services in this regards includes: Advising our clients on necessity, need and requirement of buy-backs given certain

tal market conditions ,working out optimal buy-back pricing strategies offering advice on the most suitable mode and method of buy-back apart from relevant regulatory

We offer a wide spectrum of Investment Banking Services to our clients in the Private and Public

Lead Manage public offerings of Equity and Debt under Book Built as well as Fixed

Syndicate, underwrite and distribute the securities to a nationwide client base t mobilisers of funds for debt and fixed

ices to our clients on potential takeover targets with the objective of

Drafting advertisements, offer documents, share purchase agreements/documents acquisition consolidation strategies.

listing are reverse corporate interventions in the capital of the

backs given certain back pricing strategies offering

back apart from relevant regulatory

Drafting offer documents, astrategies. Project Finance / Term Loans / Working Capital SyndicationWe work very closely with a large number of banks in public and private sector apart from the government-owned banksNegotiating interest rates and other terms and conditions with the interested banks and obtaining sanction lettersOffering advice on loan agreements and documents, and loan drawl schedules.

Advisory Services for Corporate and Capital Structuring and Restructuring Consolidation and divestment of businesses, activity with regard to consolidation of shareholding; enhancing the Market Valuation and generating Cash Reserves. We advise our clients on Corporate and Capital Structuring and Restructuring with the clear objective of enhancing valuations of the enterprise in the long

FCCBs/GDRs/ADRsWe provide advisory and consultancy services to corporate on how to raise funds from the overseas capital markets. Our overseas associates facilitate and advise our Accordingly, we help our clients to design and structure the instruments, and prepare term sheets. In addition, we also offer advice on regulatory and compliance norms documentation, raising funds from identified investors listing and t

Wide range services

We offer a comprehensive range of services including financial planning and investment advice, and the entire gamut of financial instruments and companies, both public and private. In addition, we also provide helping you complete all the formalities, and help you keep regular track of your investments.

These services and products are delivered through our network of 109 Bajaj CapitalCenters located all over the country.

We are also a SEBI-approved Category I Merchant Bankertop institutions and corporate houses every year, and offer Indian (NRIs) and High Net worth Clients

What you can expect from of Bajaj Capital

Sound, research-based advice Unbiased, independent and need Prompt, courteous service Honest, ethical dealings, Accesability

26

Drafting offer documents, advising on funding options and post buyProject Finance / Term Loans / Working Capital Syndication

We work very closely with a large number of banks in public and private sector apart owned banksNegotiating interest rates and other terms and

ons with the interested banks and obtaining sanction lettersOffering advice on loan agreements and documents, and loan drawl schedules.

Advisory Services for Corporate and Capital Structuring and Restructuring Consolidation and divestment of businesses, entities, and units have become very prominent activity with regard to consolidation of shareholding; enhancing the Market Valuation and generating Cash Reserves. We advise our clients on Corporate and Capital Structuring and

bjective of enhancing valuations of the enterprise in the long

We provide advisory and consultancy services to corporate on how to raise funds from the overseas capital markets. Our overseas associates facilitate and advise our clients through us. Accordingly, we help our clients to design and structure the instruments, and prepare term sheets. In addition, we also offer advice on regulatory and compliance norms documentation, raising funds from identified investors listing and trading in securities.

Wide range services of Bajaj Capital

We offer a comprehensive range of services including financial planning and investment advice, and the entire gamut of financial instruments and investment products of almost all major

oth public and private. In addition, we also provide investment assistancehelping you complete all the formalities, and help you keep regular track of your investments.

These services and products are delivered through our network of 109 Bajaj CapitalCenters located all over the country.

approved Category I Merchant Banker. We raise resources for over 1,000 top institutions and corporate houses every year, and offer specialized services

High Net worth Clients.

of Bajaj Capital

based advice Unbiased, independent and need-based advice Prompt, courteous service Honest, ethical dealings, Accesability

dvising on funding options and post buy-back business Project Finance / Term Loans / Working Capital Syndication

We work very closely with a large number of banks in public and private sector apart owned banksNegotiating interest rates and other terms and

ons with the interested banks and obtaining sanction lettersOffering advice on loan agreements and documents, and loan drawl schedules.

Advisory Services for Corporate and Capital Structuring and Restructuring entities, and units have become very prominent

activity with regard to consolidation of shareholding; enhancing the Market Valuation and generating Cash Reserves. We advise our clients on Corporate and Capital Structuring and

bjective of enhancing valuations of the enterprise in the long-term.

We provide advisory and consultancy services to corporate on how to raise funds from the clients through us.

Accordingly, we help our clients to design and structure the instruments, and prepare term sheets. In addition, we also offer advice on regulatory and compliance norms documentation,

We offer a comprehensive range of services including financial planning and investment advice, of almost all major

investment assistance by helping you complete all the formalities, and help you keep regular track of your investments.

These services and products are delivered through our network of 109 Bajaj Capital Investment

. We raise resources for over 1,000 to Non-Resident

FINANCIAL PLANNING SERVICES

✔ Investment planning✔ Retirement planning✔ Insurance planning✔ Children's future planning✔ Tax planning ✔ Short term cash flow planning

They have a well trained professional team comprising MBA's, CA's, CS's, Financial Analysts, Financial Planners, Investment Experts

Generations of trust :

Families have trusted them with their investment over three generations Grandson. They have used their Investment Advisory and Financial Planning schemes to achieve lifetime investment success. They believe that experience can be bought but trust has to be earned.

1) Their Greatest asset is the trust of their clients which they have reposed in them for over 4 decades.

2) They enjoy the patronage of over half a million inve

Clientele

They are recognized as one of the largest fund mobilisers in the country. The investors constitute a community of over 6 lac individual investors and over 2500 institutions like Corporates, Charitable Trusts, Educational institutions, NGO's and Scientific Research Organizations.

They are truly independent and services that are best suited for them.

As one of the oldest investment Advisory Companies,

helps them scan through hundreds of products from across the market place, to pick only

those that truly meet their needs.

They can be doubly sure that the advice they will give to them will be totally impartial.

27

FINANCIAL PLANNING SERVICES

Short term cash flow planningTeam:

They have a well trained professional team comprising MBA's, CA's, CS's, Financial Analysts, Financial Planners, Investment Experts, Insurance Experts, and Law Graduates.

Families have trusted them with their investment over three generations – from Father to Son to Grandson. They have used their Investment Advisory and Financial Planning schemes to achieve

They believe that experience can be bought but trust has to be

Their Greatest asset is the trust of their clients which they have reposed in them for over 4

They enjoy the patronage of over half a million investors across India.

Clientele – Their Biggest Asset :

They are recognized as one of the largest fund mobilisers in the country. The investors constitute a community of over 6 lac individual investors and over 2500 institutions like

Trusts, Educational institutions, NGO's and Scientific Research

They are truly independent and unbiased investment advisors, suggesting products and services that are best suited for them.As one of the oldest investment Advisory Companies, they have a research team that


those that truly meet their needs.


They have a well trained professional team comprising MBA's, CA's, CS's, Financial Analysts,

from Father to Son to Grandson. They have used their Investment Advisory and Financial Planning schemes to achieve

They believe that experience can be bought but trust has to be

Their Greatest asset is the trust of their clients which they have reposed in them for over 4

They are recognized as one of the largest fund mobilisers in the country. The investors constitute a community of over 6 lac individual investors and over 2500 institutions like

Trusts, Educational institutions, NGO's and Scientific Research

uggesting products and

they have a research team that



What is an investment Centre?

✔ Bajaj Capitals innovated the concept of Investment Centres back in 1964.

✔ An investment Centre is a retail shop where you can walk in to get free advice on where,

when and how to invest your money.

✔ Bajaj Capitals complete range of Investm

Services are available through its chain of investments Centres all over India.

Investment Advisory Products offered by Bajaj Capitals:

Company Fixed Deposits: ---

Company fixed deposits offer better returns than bank deposits with minimum lock

periods. Bajaj Capitals offer you a range of 300 Company Fixed Deposits.

Bonds and Debentures: ---

Bajaj Capital arranges Government of India Relief Bonds, whi

offer infrastructure Bonds (Tax Saving Bonds),Capital Gains Tax Saving Bonds, Bonds from

Central and State Government institutions.

Mutual Funds: ---

Mutual Funds are the only investment option that gives you market related,

through proper diversification of risks by investing in debt and equity instruments. Bajaj Capitals

offers you a range of over 100 Equity Funds, Debt Funds, and Liquid Funds.

Life Insurance: ---

Life insurance provides for dependants in

and protects your ability to meet accumulation, education and marriage goals.

General Insurance: ---

General insurance provides for auto, home and personal liability protection to protect you from a

stroke of misfortune that would take away the wealth you earned for so many years.

Pension Schemes: ---

A Pension Schemes is a savings plan that provides you with income during retirement.

28

investment Centre?

Bajaj Capitals innovated the concept of Investment Centres back in 1964.

An investment Centre is a retail shop where you can walk in to get free advice on where,

when and how to invest your money.

Bajaj Capitals complete range of Investment Advisory products and Financial Planning

Services are available through its chain of investments Centres all over India.

Investment Advisory Products offered by Bajaj Capitals:

---

Company fixed deposits offer better returns than bank deposits with minimum lock

periods. Bajaj Capitals offer you a range of 300 Company Fixed Deposits.

Bajaj Capital arranges Government of India Relief Bonds, which are tax-free bonds. We also


Central and State Government institutions.

Mutual Funds are the only investment option that gives you market related,


offers you a range of over 100 Equity Funds, Debt Funds, and Liquid Funds.

Life insurance provides for dependants in case of a mishap. It replaces earning power if disabled,

and protects your ability to meet accumulation, education and marriage goals.




An investment Centre is a retail shop where you can walk in to get free advice on where,

ent Advisory products and Financial Planning

Company fixed deposits offer better returns than bank deposits with minimum lock-in-

free bonds. We also


Mutual Funds are the only investment option that gives you market related, realistic returns


case of a mishap. It replaces earning power if disabled,




Housing Loans: ---

They arrange for housing loans at their doorstep

offering competitive interest rates.

Car/Scooter insurance: ---

They offer automobile solutions to safeguard their vehicle from every mishap, ensuring them

very easy and hassle-free procedures.

Financial Planning Services Offered By Bajaj Capitals

Financial Planning is the process of meeting their life's goal through proper management of their

finances. At Bajaj Capitals they are dedicated to the Financial Planning approach and give them

advice only after understanding their financial needs.

Financial Planning Includes: ---

Investment Planning: --

At Bajaj Capitals they help their clients to plan investments so that they may reach

their personal goals by investing according to the risks that

implement their recommend mix of investments.

✔ Cash Flow Budgeting – They analyse clients income expenses, assets and liabilities to see

which budgeting techniques can help them reach their current and long term financial

✔ Protection for yourself and your family (Insurance Planning)

helps them protect themselves and their dependent s (if any) against any unforeseen odds.

Future Goals Funding :--

Children's education and marriage planning

saving for their children's higher education and marriage well in advance by suggesting

prudent investment avenues.

Asset Purchase: -- They help them accumulate funds to purchase a house , car or other assets

by suggesting monthly savings plans and other investment instruments to make your money

29

They arrange for housing loans at their doorsteps, from leading Housing Finance Companies,

offering competitive interest rates.


free procedures.

g Services Offered By Bajaj Capitals: ---



derstanding their financial needs.


their personal goals by investing according to the risks that they can bear. After planning they

implement their recommend mix of investments.

They analyse clients income expenses, assets and liabilities to see

which budgeting techniques can help them reach their current and long term financial

Protection for yourself and your family (Insurance Planning): The insurance policies


Children's education and marriage planning: -- They help their clients start planning and


They help them accumulate funds to purchase a house , car or other assets

suggesting monthly savings plans and other investment instruments to make your money

s, from leading Housing Finance Companies,





they can bear. After planning they

They analyse clients income expenses, assets and liabilities to see

which budgeting techniques can help them reach their current and long term financial goals.

: The insurance policies


They help their clients start planning and


They help them accumulate funds to purchase a house , car or other assets

suggesting monthly savings plans and other investment instruments to make your money

grow to the required amounts.

Tax Planning: -- They help them reach their personal goals by planning their taxes and by

helping them invest in tax saving instruments that

Retirement Planning: --- To ensure that their clients enjoy their retirement without financial

hardships, they urge them to make their own pension plans like Public Provident Fund, with

their help.

Bajaj Capital'

“PREMIER CLIENT GROUP” offers Wealth Management Services for High Net Worth

Individuals.

They offer tailor made investments Advisory and Financial Planning Services exclusively to

meet the needs of high net worth individuals.

✔ Value added service assignments.

✔ Dedicated relationship managers

✔ Periodic portfolio reviews.

✔ Regular updates of portfolio valuation

✔ Need-Based advice.

FINANCIAL PLANNING GROUP” offers comprehensive Financial

term investors.

They take a comprehensive approach to planning their future by including in each

financial plan, solutions in all the following areas:

➔ Investment Planning

➔ Insurance Plannning

➔ Cash Flow Budgeting

➔ Goal Planning

➔ Tax planning

➔ Retirement planning

30

grow to the required amounts.

They help them reach their personal goals by planning their taxes and by

helping them invest in tax saving instruments that fit their personal portfolio and situation.

To ensure that their clients enjoy their retirement without financial


Bajaj Capital's Specialty Service Groups :



meet the needs of high net worth individuals. Some of the additional services offered are:

Value added service assignments.

Dedicated relationship managers

Regular updates of portfolio valuation

FINANCIAL PLANNING GROUP” offers comprehensive Financial Planning Services for long


financial plan, solutions in all the following areas:

They help them reach their personal goals by planning their taxes and by

fit their personal portfolio and situation.

To ensure that their clients enjoy their retirement without financial




Some of the additional services offered are:

Planning Services for long


Bajaj Capitals Value Added Services:

Regular Information Update

the World of Investments.

Need based Advice – They give their clients customized advice only after understanding

their needs and priorities.

Research Based Advice – Their professional research helps their clients with advice that is

thorough and based on dynamics, Government policies and a close mo

developments.

Free investment health check

assessing their risks tolerance level and recommend them a suitable asset allocation model.

Door-to-door service – They have a vast net

get services at your doorsteps.

Regular Information – They keep their clients updated on the latest opportunities in the world

of investments through their in

Accessibility – They have branches spread out across India, covering almost every nook and

corner of the country.

Tailor made Solutions – Clients get easy transactions through our “investment Centres” even

with a mere phone call.

Specialisation in all Client Segments

celebrities, professionals, ambassadors, army officers and others.

24-Hour Availability – They are available to their clients 24 hours a day, on their websites,

www.bajajcapital.com.

31

Bajaj Capitals Value Added Services:

– They keep their clients updated on the latest opportunities in

They give their clients customized advice only after understanding

Their professional research helps their clients with advice that is

thorough and based on dynamics, Government policies and a close monitoring of global

Free investment health check – They help their clients achieve their financial goals by


They have a vast network of branches all over India, helping you to

get services at your doorsteps.

They keep their clients updated on the latest opportunities in the world

of investments through their in-house publications.

They have branches spread out across India, covering almost every nook and

Clients get easy transactions through our “investment Centres” even

Specialisation in all Client Segments – They offer Financial Planning for housewives,

celebrities, professionals, ambassadors, army officers and others.

They are available to their clients 24 hours a day, on their websites,

They keep their clients updated on the latest opportunities in

They give their clients customized advice only after understanding

Their professional research helps their clients with advice that is

nitoring of global

They help their clients achieve their financial goals by


work of branches all over India, helping you to

They keep their clients updated on the latest opportunities in the world

They have branches spread out across India, covering almost every nook and

Clients get easy transactions through our “investment Centres” even

They offer Financial Planning for housewives,

They are available to their clients 24 hours a day, on their websites,

Bajaj Capital's in

Bajaj Capital investors India

decision in matters relating to investments, based on the principles of financial planning.

Money Multiplying News: --

options available for them for investment

Investors Select Lists: -- A monthly list of the latest investment options covering all financial

products like Company FDs, Equity Mutual Funds, Debt Mutual Funds, Insurance Schemes,

and others.

Investment Outlook : -- A monthly rese

equity markets. Also gives a technical trend analysis of the market.

Tax Planning Guide: -- An annual guide that educates the client how on how to avail certain

exemptions, deductions, rebates, and relieve

Guide to Financial Independence

independent.

Voluntary Retirement Scheme Guide

according to their needs after they take voluntary retirement

Reasons why invest only through Bajaj Capitals?

40 Years of service to investors

Advisory Companies in India, in operation since 1964.

Nationwide Presence and modern Infrastructure

offices all over the country and a team of over 450 highly motivated professionals. Their

operations are fully computerised.

SEBI Authorization – Securities and Exchange Board o

merchant bankers, investment advisors and financial planners.

After sales service – Their role doesn't end when clients have made their investments. They

feel obliged to solve their queries even after they have invested with

Vast variety of schemes – They are full

their clients on a large variety of financial products.

32

Bajaj Capital's in-house publications For Investors :

Bajaj Capital investors India: --- A monthly magazine, that helps their clients take the right


-- A fortnightly magazine that helps clients choose their best

options available for them for investments during that period.

A monthly list of the latest investment options covering all financial


A monthly research report that gives an overview of the debt and

equity markets. Also gives a technical trend analysis of the market.

An annual guide that educates the client how on how to avail certain

exemptions, deductions, rebates, and relieves, in order to minimize their tax liability.

Guide to Financial Independence: -- A practical financial guide on how to be financially

Voluntary Retirement Scheme Guide: A special guide that helps clients plan their finances

needs after they take voluntary retirement

Reasons why invest only through Bajaj Capitals?

40 Years of service to investors – Bajaj Capital is one of the oldest and largest Investment

Advisory Companies in India, in operation since 1964.

Presence and modern Infrastructure: -- Bajaj Capitals has a vast network of 96


operations are fully computerised.

Securities and Exchange Board of India (SEBI) is an authorised

merchant bankers, investment advisors and financial planners.

Their role doesn't end when clients have made their investments. They

feel obliged to solve their queries even after they have invested with them.

They are full-fledged “ financial Supermarket” offering advice to

their clients on a large variety of financial products.

helps their clients take the right


A fortnightly magazine that helps clients choose their best

A monthly list of the latest investment options covering all financial


arch report that gives an overview of the debt and

An annual guide that educates the client how on how to avail certain

s, in order to minimize their tax liability.

A practical financial guide on how to be financially

: A special guide that helps clients plan their finances

Bajaj Capital is one of the oldest and largest Investment

Bajaj Capitals has a vast network of 96


f India (SEBI) is an authorised

Their role doesn't end when clients have made their investments. They

fledged “ financial Supermarket” offering advice to

Research Centre – They have large Research Centre, where experts constantly monitor and

analyse the industry, economy and various schemes performances to give them unbiased

investment advice.

Independent Investment Advice

Advisory companies. They are not promoted by any bank, mutual fund or NBFC, and ar

hence able to give truly neutral advice.

Strength – Their largest strength is their vast and dedicated clientele of around 6 lac

individual investors all over India.

Bajaj Capital now introduces 360 degree financial investments.

Experience the power of Bajaj Capital's 360º Financial Planning

The only thing permanent in life is change. Times change. People change. So does life. You expect life to be much better tomorrow than it is today. Tomorrow, you hope to fulfill all your dreams and aspirations. But what happens if things take an untoward turn? Or, if there is an eventuality? Perhaps it's time for you to change the way you plan your inve

33

They have large Research Centre, where experts constantly monitor and

ndustry, economy and various schemes performances to give them unbiased

Independent Investment Advice – They are one of India's few independent Investment

Advisory companies. They are not promoted by any bank, mutual fund or NBFC, and ar

hence able to give truly neutral advice.

Their largest strength is their vast and dedicated clientele of around 6 lac

individual investors all over India.

Bajaj Capital now introduces 360 degree financial investments.

Bajaj Capital's 360º Financial Planning

The only thing permanent in life is change. Times change. People change. So does life. You expect life to be much better tomorrow than it is today. Tomorrow, you hope to fulfill all your

hat happens if things take an untoward turn? Or, if there is an eventuality? Perhaps it's time for you to change the way you plan your investment.

They have large Research Centre, where experts constantly monitor and

ndustry, economy and various schemes performances to give them unbiased

They are one of India's few independent Investment

Advisory companies. They are not promoted by any bank, mutual fund or NBFC, and are

Their largest strength is their vast and dedicated clientele of around 6 lac

The only thing permanent in life is change. Times change. People change. So does life. You expect life to be much better tomorrow than it is today. Tomorrow, you hope to fulfill all your

hat happens if things take an untoward turn? Or, if there is an stment.

Fixed Deposits

CANFIN HOMES LTD

CEAT LIMITED

HDFC LIMITED

HUDCO

ICICI HOME FINANCE

J.K. LAXMI CEMENT LTD.

J.K. INDUSTRIES LTD.

JAGATJIT INDUSTRIES LTD.

JAIPRAKASH ASSOCIATES LTD.

JCT LIMITED

JINDAL STEEL & POWER LTD.

JK PAPER LIMITED

KERALA TRAN DEV. FIN LTD.

LIC HOUSI NG FINANCE LTD.

MADRAS FERTILIZERS LTD.

NATIONAL HOUSING BANK(SUNIDHI SCHEME)

PNB HOUSING FINANCE

SHRIRAM PISTON & RINGS LTD.

SIDBI

SURYA ROSHNI LTD.

TATA MOTORS LTD.

TELEVISION LTD.

LUCAS-TVS LTD.

DELPHI-TVS DIESEL SYSTEMS LTD.

LIFE INSURANCE COMPANIES

BIRLA SUNLIFE

AVIVA

ICICI PRUDENTIAL

KOTAK MAHINDRA

LIC

RELIANCE LIFE INSURANCE

34

Product profile

CANFIN HOMES LTD

ICICI HOME FINANCE

J.K. LAXMI CEMENT LTD.

J.K. INDUSTRIES LTD.

JAGATJIT INDUSTRIES LTD.

JAIPRAKASH ASSOCIATES LTD.

JINDAL STEEL & POWER LTD.

JK PAPER LIMITED

KERALA TRAN DEV. FIN LTD.

NG FINANCE LTD.

MADRAS FERTILIZERS LTD.

NATIONAL HOUSING BANK(SUNIDHI SCHEME)

PNB HOUSING FINANCE

SHRIRAM PISTON & RINGS LTD.

SURYA ROSHNI LTD.

TATA MOTORS LTD.

TELEVISION LTD.

TVS LTD.

TVS DIESEL SYSTEMS LTD.

ANIES

BIRLA SUNLIFE

ICICI PRUDENTIAL

KOTAK MAHINDRA

RELIANCE LIFE INSURANCE

SBI LIFE

TATA AIG

BAJAJ ALLIANZ

ING VAISYA

MUTUAL FUNDSEquity funds

SBI Magnum Sector Fund umbrela SBI Magnum Index Fund SBI Magnum Multicap Fund SBI Magnum Multiplier SBI Magnum Tax Gain SBI Growth Fund Tata Growth Fund Birla Advantage Fund DSP ML Equity Fund DSP ML TOP 100 Equity Fund Franklin India Bluechip Fund HDFC Equity Fund HDFC Growth Fund HDFC TOP 200 Fund Prudential ICICI Discovery Fund Prudential ICICI Growth Fund Prudential ICICI Power Fund Reliance Growth Fund Sundaram India Leadership Fund Sundaram Select Focus Fund ABN AMRO Equity Fund HDFC MUTUAL FUND

Balanced fund

Duetche Mutual fund Sundaram Debt fund UTI debt funds SBI Debt fund series Sundaram balanced funds SBI Mutual fund Birla Balance Fund

35

BAJAJ ALLIANZ

SBI Magnum Sector Fund umbrelaSBI Magnum Index Fund

ap Fund

DSP ML TOP 100 Equity FundFranklin India Bluechip Fund

Prudential ICICI Discovery FundPrudential ICICI Growth FundPrudential ICICI Power Fund

Sundaram India Leadership Fundocus Fund

ABN AMRO Equity FundHDFC MUTUAL FUND

s

http://www.bajajcapital.com/investments/mutual-funds/soft copy/sbi/equity/index fund.pdf

http://www.bajajcapital.com/investments/mutual-funds/soft copy/sbi/equity/magnum mulitcap.pdf

http://www.bajajcapital.com/investments/mutual-funds/soft copy/sbi/equity/magnum multiplier.pdf

http://www.bajajcapital.com/investments/mutual-funds/soft copy/sbi/equity/taxgain.pdf

http://www.bajajcapital.com/investments/mutual-funds/soft copy/sbi/equity/sbi equity.pdf

http://www.bajajcapital.com/investments/mutual-funds/equity-funds.php#tata

http://www.bajajcapital.com/investments/mutual-funds/equity-funds.php#birla

http://www.bajajcapital.com/investments/mutual-funds/equity-funds.php#dsp

http://www.bajajcapital.com/investments/mutual-funds/equity-funds.php#dsp1

http://www.bajajcapital.com/investments/mutual-funds/equity-funds.php#frank

http://www.bajajcapital.com/investments/mutual-funds/equity-funds.php#hdfc

http://www.bajajcapital.com/investments/mutual-funds/equity-funds.php#hdfc1

http://www.bajajcapital.com/investments/mutual-funds/equity-funds.php#hdfc2

http://www.bajajcapital.com/investments/mutual-funds/equity-funds.php#pru

http://www.bajajcapital.com/investments/mutual-funds/equity-funds.php#pru1

http://www.bajajcapital.com/investments/mutual-funds/equity-funds.php#pru2

http://www.bajajcapital.com/investments/mutual-funds/equity-funds.php#reliance

http://www.bajajcapital.com/investments/mutual-funds/equity-funds.php#sund

http://www.bajajcapital.com/investments/mutual-funds/equity-funds.php#sund1

http://www.bajajcapital.com/investments/mutual-funds/equity-funds.php#abn

http://www.bajajcapital.com/investments/mutual-funds/soft copy/forms12/DWS-KIM-Com-Full.pdf

http://www.bajajcapital.com/investments/mutual-funds/soft copy/sundaram/debt schemes.pdf

http://www.bajajcapital.com/investments/mutual-funds/soft copy/UTI/uti DEBT.pdf

http://www.bajajcapital.com/investments/mutual-funds/soft copy/sundaram/equity schemes.pdf

http://www.bajajcapital.com/investments/mutual-funds/soft copy/sundaram/equity schemes.pdf

http://www.bajajcapital.com/investments/mutual-funds/balanced-funds.php#birla

DSP ML Balanced Fund FT India Balanced Fund HDFC Balanced Fund HDFC Prudence Fund Prudential ICICI Balance Fund Sundaram Balanced Fund Tata Balanced Fund Birla sunlife Mutual Fund

Debt funds

HDFC HSBC SBI Magnum Income Plus Fund SBI Magnum gilt fund SBI Magnum Income Fund SBI Magnum Monthly Income Plan Templeton Floating Rate Income Fund Birla Floating Rate Income Fund Templeton Floating Rate Income Fund Deutsche Floating Rate Fund HDFC Floating Rate Income Fund HDFC Floating Rate Income Fund Deutsche Floating Rate Fund Grindlays Floating Rate Fu Grindlays Floating Rate Fund SBI Magnum fund NRI Prudential ICICI Floating Rate Fund

Liquid funds

Duetche Mutual fund Institutional Income Fund SBI Magnum Insta Cash Fund SBI Magnum Insta Cash Sundaram Equity funds SBI Sector Umbrela UTI Equity funds

36

Prudential ICICI Balance FundSundaram Balanced Fund

und

SBI Magnum Income Plus Fund

SBI Magnum Income FundIncome Plan

Templeton Floating Rate Income Fund - STPIncome Fund - STP

Templeton Floating Rate Income Fund - LTPating Rate Fund

HDFC Floating Rate Income Fund - STPIncome Fund - LTP

Deutsche Floating Rate FundGrindlays Floating Rate Fund -LTPGrindlays Floating Rate Fund - STP

ICICI Floating Rate Fund - LTP

Institutional Income FundSBI Magnum Insta Cash Fund

http://www.bajajcapital.com/investments/mutual-funds/balanced-funds.php#dsp

http://www.bajajcapital.com/investments/mutual-funds/balanced-funds.php#ft

http://www.bajajcapital.com/investments/mutual-funds/balanced-funds.php#hdfc

http://www.bajajcapital.com/investments/mutual-funds/balanced-funds.php#hdfc1

http://www.bajajcapital.com/investments/mutual-funds/balanced-funds.php#pru

http://www.bajajcapital.com/investments/mutual-funds/balanced-funds.php#sund

http://www.bajajcapital.com/investments/mutual-funds/balanced-funds.php#tata

http://www.bajajcapital.com/investments/mutual-funds/soft copy/HDFC-Forms.pdf

http://www.bajajcapital.com/investments/mutual-funds/soft copy/hsbc.pdf

http://www.bajajcapital.com/investments/mutual-funds/soft copy/sbi/debt/sbi income fund.pdf

http://www.bajajcapital.com/investments/mutual-funds/soft copy/sbi/debt/Magnum Income Plus.pdf

http://www.bajajcapital.com/investments/mutual-funds/soft copy/sbi/debt/sbi mip.pdf

http://www.bajajcapital.com/investments/mutual-funds/debt-funds.php#te



http://www.bajajcapital.com/investments/mutual-funds/debt-funds.php#bi








http://www.bajajcapital.com/investments/mutual-funds/debt-funds.php#temp

http://www.bajajcapital.com/investments/mutual-funds/debt-funds.php#temp

http://www.bajajcapital.com/investments/mutual-funds/debt-funds.php#de



http://www.bajajcapital.com/investments/mutual-funds/debt-funds.php#hdf

Chapter – III

REVIEW OF LITERATURE

RESEARCH METHODOLOGY

37



REVIEW

To give a complete shape of project report, the researcher have given through the following books, journals and websites about which I have given detail below.

BOOK

“INVESTMENT” by BODIE, MARCUS,PITABAS MOHANTY

Findings : To know aout

JOURNALS & REPORTS

“PORTFOLIO ORGANSIER”

Findings: Current knowledge about mutual fund and equity market

“INVESTORS INDIA”

Findings: All information about investment instruments

ECONOMIC TIMES

AMFI(BASIC MODULE)

Findings: complete knowledge about mutual funds

WEBSITES

www.mutufundsindia.com

www.amfiindia.com

www.mfea.com

Findings: complete knowledge about mutual funds

www.sebigov.in

38


To give a complete shape of project report, the researcher have given through the following books, journals and websites about which I have given detail below.

by BODIE, MARCUS,PITABAS MOHANTY

To know aout the investments done in the market

“PORTFOLIO ORGANSIER” OF ICFAI UNIVERSITY PRESS

urrent knowledge about mutual fund and equity market

“INVESTORS INDIA” OF BAJAJ CAPITAL

information about investment instruments

ECONOMIC TIMES

AMFI(BASIC MODULE)

complete knowledge about mutual funds

www.mutufundsindia.com

complete knowledge about mutual funds

To give a complete shape of project report, the researcher have given through the following

OF ICFAI UNIVERSITY PRESS

Findings: Security Exchange Board of india’s home website ,which gives knowledge about both mutual funds and equ

www.nse.com

Findings: To find out whether these funds are performing better or not with

Comparison to the benchmarks

www.bajajcapital.com

findings: Investors switch between different funds at different times,and dyanamically manage their portfolio in order to achieve high managing the mutual funds portfolio is done on their behalf by fund of funds


Reasearch Design

Research design of my project is analytical

Sources of data

The data which I have collected are from journals, books and different websites written above.

39

Security Exchange Board of india’s home website ,which gives knowledge about both mutual funds and equity market

To find out whether these funds are performing better or not with

Comparison to the benchmarks

www.bajajcapital.com

Investors switch between different funds at different times,and e their portfolio in order to achieve high returns.

managing the mutual funds portfolio is done on their behalf by fund of funds


Research design of my project is analytical

The data which I have collected are from secondary sources from the industry profile, different ks and different websites written above.

Security Exchange Board of india’s home website ,which gives knowledge

To find out whether these funds are performing better or not with

Investors switch between different funds at different times,and returns. This task of

managing the mutual funds portfolio is done on their behalf by fund of funds.

from the industry profile, different

http://www.nse.com/

http://www.nse.com/

http://www.nse.com/

http://www.nse.com/

http://www.nse.com/

http://www.nse.com/

Chapter-IV

MUTUAL FUNDS

(Description & Classification

40

(Description & Classification)

Mutual Fund is an instrument of investing money. Nowadays, bank rates have fallen down and are generally below the inflation rate. Therefore, keeping large amounts of money in baa wise option, as in real terms the value of money decreases over a period of time.

One of the options is to invest the money in stock market. But a common investor is not informed and competent enough to understand the mutual funds come to the rescue.

A mutual fund is a group of investors operating purchase a diverse portfolio of stocks or bonds. Mutual funds are highly cost efficienteasy to invest in. By pooling money together in a mutual fund, investors can purchase stocks or bonds with much lower trading costs than if they tried to do it on their own.units to the investors in accordance with quantum of mutual funds are known as “Unitholders

The profits or losses are shared by the investors in proportion to their investments. The mutual funds normally come out with a number of schemes with differenobjectives, which are launched from time to time. A mutual fund is required to be registered with Securities and Exchange Board of India (SEBI) which regulates securitiit can collect funds from the public.

Investments may be in stocks, bonds, money market securities or some combination of these. Those securities are professionally & efficiently managed on behalf of the shareholders, and each investor holds a pro rata share of the portfolio when the securities are sold, but subject to any losses in value as well.

A mutual fund is just the connecting bridge or a financial intermediary that

allows a group of investors to pool their money together with a predetermined i

objective. The mutual fund will have a fund manager who is responsible for investing the

gathered money into specific securities (stocks or bonds). When you invest in a mutual fund,

you are buying units or portions of the mutual fund and thus on

shareholder or unit holder of the fund

units of mutual funds they hold as per the NAVs.

41

Mutual funds

Mutual Fund is an instrument of investing money. Nowadays, bank rates have fallen down and are generally below the inflation rate. Therefore, keeping large amounts of money in baa wise option, as in real terms the value of money decreases over a period of time.

One of the options is to invest the money in stock market. But a common investor is not informed and competent enough to understand the intricacies of stock market. This is where mutual funds come to the rescue.

a group of investors operating through a fund manager to purchase a diverse portfolio of stocks or bonds. Mutual funds are highly cost efficienteasy to invest in. By pooling money together in a mutual fund, investors can purchase stocks or bonds with much lower trading costs than if they tried to do it on their own. Mutual fund issues units to the investors in accordance with quantum of money invested by them. Investors of

Unitholders”.

The profits or losses are shared by the investors in proportion to their investments. The mutual funds normally come out with a number of schemes with differenobjectives, which are launched from time to time. A mutual fund is required to be registered with Securities and Exchange Board of India (SEBI) which regulates securities markets before

funds from the public.

nvestments may be in stocks, bonds, money market securities or some combination of these. Those securities are professionally & efficiently managed on behalf of the shareholders, and each investor holds a pro rata share of the portfolio -- entitled to any when the securities are sold, but subject to any losses in value as well.


allows a group of investors to pool their money together with a predetermined i



you are buying units or portions of the mutual fund and thus on investing becomes a

shareholder or unit holder of the fund. The investors profit and loss are determined as per the

units of mutual funds they hold as per the NAVs.

Mutual Fund is an instrument of investing money. Nowadays, bank rates have fallen down and are generally below the inflation rate. Therefore, keeping large amounts of money in bank is not a wise option, as in real terms the value of money decreases over a period of time.

One of the options is to invest the money in stock market. But a common investor is intricacies of stock market. This is where

through a fund manager to purchase a diverse portfolio of stocks or bonds. Mutual funds are highly cost efficient and very easy to invest in. By pooling money together in a mutual fund, investors can purchase stocks or

Mutual fund issues money invested by them. Investors of

The profits or losses are shared by the investors in proportion to their investments. The mutual funds normally come out with a number of schemes with different investment objectives, which are launched from time to time. A mutual fund is required to be registered

es markets before

nvestments may be in stocks, bonds, money market securities or some combination of these. Those securities are professionally & efficiently managed on behalf of the

entitled to any profits when the securities are sold, but subject to any losses in value as well.


allows a group of investors to pool their money together with a predetermined investment



investing becomes a

The investors profit and loss are determined as per the

NAV = Total value of the fund……………….

No. of shares currently issued and

History of the Indian mutual fund industry:

The government of India set up Unit Trust of India in 1963 by an act on parliament. UTI functioned under the regulatory and administrative control of the Reserve Bank of India till 1978. The Industrial Development Bank of India took over the regulatory and administrative control that year. The first scheme launched by UTI was Unit Scheme 1964 or the infamous Unit 64. The second phase of the mutual fund industry began with the public sector banks and LInsurance Corporation of India and General Insurance Corporation of India setting up their own mutual funds in 1987. Finally, in 1993 Kothari Pioneer (now merged with Franklin Templeton) became the first private sector mutual fund to start operations isector as well as foreign funds set up shop after that. In 1996, a comprehensive and revised Mutual Fund regulation was put in place. The industry now functions under Sebi (Mutual Fund) regulations, 1996.

The industry faced its toughest challenge when the US 64 fiasco shattered the confidence of investors. However, in 2003, the government bifurcated the erstwhile UTI. One entity manages the assets of US 64 and some assured return schemes. The other is a regular mutual fund under the Sebi regulations. Thanks to the boom in the stock market, UTI managed to clean up its act and continue to enjoy the confidence of several investors. The whole industry also came out of the controversy without any major setbacks.

Categorie

Mutual funds can be classified as follow:

Based on their structure:

Open-ended funds: Investors can buy and sell the units from the fund, at any point of time.

Close-ended funds: These funds raise money from investors only once. Therefore, after

the offer period, fresh investments can not be made into the fund. If the fund is listed on a

stocks exchange the units can be traded like stocks (E.g., Morgan Stanley Growth Fund).

Recently, most of the New Fund Offers of close

on a periodic basis such as monthly or weekly. Redemption of units can be made during

specified intervals. Therefore, such funds have relatively low liquidity.

42

Total value of the fund………………. No. of shares currently issued and outstanding

History of the Indian mutual fund industry:

The government of India set up Unit Trust of India in 1963 by an act on parliament. UTI functioned under the regulatory and administrative control of the Reserve Bank of India till

al Development Bank of India took over the regulatory and administrative control that year. The first scheme launched by UTI was Unit Scheme 1964 or the infamous Unit 64. The second phase of the mutual fund industry began with the public sector banks and LInsurance Corporation of India and General Insurance Corporation of India setting up their own mutual funds in 1987. Finally, in 1993 Kothari Pioneer (now merged with Franklin Templeton) became the first private sector mutual fund to start operations in the country. A host of private sector as well as foreign funds set up shop after that. In 1996, a comprehensive and revised Mutual Fund regulation was put in place. The industry now functions under Sebi (Mutual Fund) regulations, 1996.

d its toughest challenge when the US 64 fiasco shattered the confidence of investors. However, in 2003, the government bifurcated the erstwhile UTI. One entity manages the assets of US 64 and some assured return schemes. The other is a regular mutual fund under the Sebi regulations. Thanks to the boom in the stock market, UTI managed to clean up its act and continue to enjoy the confidence of several investors. The whole industry also came out of the controversy without any major setbacks.

Categories of mutual funds:

Mutual funds can be classified as follow:

Based on their structure:

Investors can buy and sell the units from the fund, at any point of

These funds raise money from investors only once. Therefore, after



y, most of the New Fund Offers of close-ended funds provided liquidity window


specified intervals. Therefore, such funds have relatively low liquidity.

The government of India set up Unit Trust of India in 1963 by an act on parliament. UTI functioned under the regulatory and administrative control of the Reserve Bank of India till

al Development Bank of India took over the regulatory and administrative control that year. The first scheme launched by UTI was Unit Scheme 1964 or the infamous Unit 64. The second phase of the mutual fund industry began with the public sector banks and Life Insurance Corporation of India and General Insurance Corporation of India setting up their own mutual funds in 1987. Finally, in 1993 Kothari Pioneer (now merged with Franklin Templeton)

n the country. A host of private sector as well as foreign funds set up shop after that. In 1996, a comprehensive and revised Mutual Fund regulation was put in place. The industry now functions under Sebi (Mutual Fund) regulations, 1996.

d its toughest challenge when the US 64 fiasco shattered the confidence of investors. However, in 2003, the government bifurcated the erstwhile UTI. One entity manages the assets of US 64 and some assured return schemes. The other is a regular mutual fund working under the Sebi regulations. Thanks to the boom in the stock market, UTI managed to clean up its act and continue to enjoy the confidence of several investors. The whole industry also came out

Investors can buy and sell the units from the fund, at any point of

These funds raise money from investors only once. Therefore, after



ended funds provided liquidity window


Based on their investment objective:

Equity funds: These funds invest in equities and equity related instruments. With

fluctuating share prices, such funds show volatile performance, even losses. However,

short term fluctuations in the market, generally smoothens out in th

offering higher returns at relatively lower volatility. At the same time, such funds can

yield great capital appreciation as, historically, equities have outperformed all asset

classes in the long term. Hence, investment in equity fund

period of at least 3-5 years. It can be further classified as:

i) Index funds- In this case a key stock market index, like BSE Sensex or Nifty is tracked. Their portfolio mirrors the benchmark index both in terms of compoweightages.

ii) Equity diversified funds- 100% of the capital is invested in equities spreading across different sectors and stocks.

iii|) Dividend yield funds- it is similar to the equity diversified funds excecompanies offering high dividend yields.

iv) Thematic funds- Invest 100% of the assets in sectors which are related through some theme.e.g. -An infrastructure fund invests in power, construction, cements sectors etc.

v) Sector funds- Invest 100% of the capital in a specific sector. e.g. invest in banking stocks.

vi) ELSS- Equity Linked Saving Scheme provides tax benefit to the investors.

Balanced fund: Their investment portfolio includes both debt and

risk-return ladder, they fall between equity and debt funds. Balanced funds are the ideal mutual

funds vehicle for investors who prefer spreading their risk across various instruments. Following

are balanced funds classes:

i) Debt-oriented funds -Investment below 65% in equities.

ii) Equity-oriented funds -Invest at least 65% in equities, remaining in debt.

43

estment objective:

These funds invest in equities and equity related instruments. With


short term fluctuations in the market, generally smoothens out in the long term, thereby



classes in the long term. Hence, investment in equity funds should be considered for a

5 years. It can be further classified as:

In this case a key stock market index, like BSE Sensex or Nifty is tracked. Their portfolio mirrors the benchmark index both in terms of composition and individual stock

100% of the capital is invested in equities spreading across different

it is similar to the equity diversified funds except that they invest in companies offering high dividend yields.

Invest 100% of the assets in sectors which are related through some theme.An infrastructure fund invests in power, construction, cements sectors etc.

Invest 100% of the capital in a specific sector. e.g. - A banking sector fund will

Equity Linked Saving Scheme provides tax benefit to the investors.

Their investment portfolio includes both debt and equity. As a result, on the

return ladder, they fall between equity and debt funds. Balanced funds are the ideal mutual


Investment below 65% in equities.

Invest at least 65% in equities, remaining in debt.

These funds invest in equities and equity related instruments. With


e long term, thereby



s should be considered for a

In this case a key stock market index, like BSE Sensex or Nifty is tracked. sition and individual stock

100% of the capital is invested in equities spreading across different

pt that they invest in

Invest 100% of the assets in sectors which are related through some theme.

A banking sector fund will

equity. As a result, on the

return ladder, they fall between equity and debt funds. Balanced funds are the ideal mutual


Debt fund: They invest only in debt instruments, and are a good option for investors averse to

idea of taking risk associated with equities. Therefore, they invest exclusively in fixed

instruments like bonds, debentures, Government of India securities; and money market

instruments such as certificates of deposit (CD), commercial paper (CP) and call money. Put

your money into any of these debt funds depending on your investment horizon and needs.

i) Liquid funds- These funds invest 100% in money market instruments, a large portion being invested in call money market.

ii)Gilt funds ST- They invest 100% of their por

iii)Floating rate funds - Invest in shortwhich have variable coupon rate.

iv)Arbitrage fund- They generate income through arbitrage opportunities due to

between cash market and derivatives market. Funds are allocated to equities, derivatives and

money markets. Higher proportion (around 75%) is put in money markets, in the absence of

arbitrage opportunities.

v)Gilt funds LT- They invest 100% of

vi) Income funds LT- Typically, such funds invest a major portion of the portfolio in longdebt papers.

vii) MIPs- Monthly Income Plans have an exposure of 70%10%-30% to equities.

viii)FMPs- fixed monthly plans invest in debt papers whose maturity is in line with that of the fund.

44

They invest only in debt instruments, and are a good option for investors averse to

associated with equities. Therefore, they invest exclusively in fixed



ur money into any of these debt funds depending on your investment horizon and needs.

These funds invest 100% in money market instruments, a large portion being

They invest 100% of their portfolio in government securities of and T

Invest in short-term debt papers. Floaters invest in debt instruments which have variable coupon rate.

They generate income through arbitrage opportunities due to



They invest 100% of their portfolio in long-term government securities.

Typically, such funds invest a major portion of the portfolio in long

Monthly Income Plans have an exposure of 70%-90% to debt and an exposure of

fixed monthly plans invest in debt papers whose maturity is in line with that of the

They invest only in debt instruments, and are a good option for investors averse to

associated with equities. Therefore, they invest exclusively in fixed-income



ur money into any of these debt funds depending on your investment horizon and needs.

These funds invest 100% in money market instruments, a large portion being

tfolio in government securities of and T-bills.

term debt papers. Floaters invest in debt instruments

They generate income through arbitrage opportunities due to mis-pricing



term government securities.

Typically, such funds invest a major portion of the portfolio in long-term

90% to debt and an exposure of

fixed monthly plans invest in debt papers whose maturity is in line with that of the

45

Risk v/s. return:

Working of mutual fund

Chapter - V

EQUITY MUTUAL

HOW TO SELECT AN EQUITY FUND

DATA ANALYSIS AND INTERPRETATION

FINDINGS

CONCLUSION

46

MUTUAL FUNDS AND ITS PERFORMANCE

TO SELECT AN EQUITY FUND

ATA ANALYSIS AND INTERPRETATION

CONCLUSION

FUNDS AND ITS PERFORMANCE

Equity mutual funds are also known as stock mutual funds. Equity mutual funds invest pooled amounts of money in the stocks of public companies.several properties. Funds may have a specific style, for example, value or growthrepresent part ownership, or equity, in companies, and the aim of stock ownership is to see the value of the companies increase over time. Stocapitalization (or caps), and can be classified in three basic sizes: small, medium, and large. Many mutual funds invest primarily in companies of one of these sizes and are thus classified as large-cap, mid-cap or smallpicking are said to be actively managed, whereas index funds try as well as possible to mirror specific stock market indices

Equity fund managers employ different styles of stock picking when decisions for their portfolios. Some fund managers use a value approach to stocks, searching for stocks that are undervalued when compared to other similar companies. Another approach to picking is to look primarily at growth, trying ttheir competitors, or the market as a whole. Some managers buy both kinds of stocks, building a portfolio of both growth and value stocks. Since equity funds invest in stocks, they have the potential to generate more returns. On the other hand they carry greater risks too.

Fund assets are typically mainly in stock, with some amount of cash, which is generally quite small, as opposed to bonds, notes, or othterm growth through capital gains, although historically dividends have also been an important source of total return. Specific equity funds may focus on a certain sector of the market or may be geared toward a certain level of risk.

Equity funds Index funds -

Index funds invest in securities to mirror a market index, such as the S&P 500. An index fund buys and sells securities in a manner that mirrors the composition of the selected index. The fund's performance tracks the underlying index's performance. Turnover of securities in an index fund's portfolio is minimal. As a result, an index fund generally has lower management costs than other types of fund

47

Equity funds

Equity mutual funds are also known as stock mutual funds. Equity mutual funds invest pooled amounts of money in the stocks of public companies. Stock funds can be distinguished by several properties. Funds may have a specific style, for example, value or growthrepresent part ownership, or equity, in companies, and the aim of stock ownership is to see the value of the companies increase over time. Stocks are often categorized by their market capitalization (or caps), and can be classified in three basic sizes: small, medium, and large. Many mutual funds invest primarily in companies of one of these sizes and are thus classified

small-cap funds. Funds which involve some component of stock picking are said to be actively managed, whereas index funds try as well as possible to mirror

Equity fund managers employ different styles of stock picking when they make investment decisions for their portfolios. Some fund managers use a value approach to stocks, searching for stocks that are undervalued when compared to other similar companies. Another approach to picking is to look primarily at growth, trying to find stocks that are growing faster than their competitors, or the market as a whole. Some managers buy both kinds of stocks, building a portfolio of both growth and value stocks. Since equity funds invest in stocks, they have the

ore returns. On the other hand they carry greater risks too.

Fund assets are typically mainly in stock, with some amount of cash, which is generally quite small, as opposed to bonds, notes, or other securities. The objective of an equity fund is long

m growth through capital gains, although historically dividends have also been an important source of total return. Specific equity funds may focus on a certain sector of the market or may be geared toward a certain level of risk.

Equity funds are of following types –

Index funds invest in securities to mirror a market index, such as the S&P 500. An index fund buys and sells securities in a manner that mirrors the composition of the selected

The fund's performance tracks the underlying index's performance. Turnover of securities in an index fund's portfolio is minimal. As a result, an index fund generally has lower management costs than other types of fund

Equity mutual funds are also known as stock mutual funds. Equity mutual funds invest pooled can be distinguished by

several properties. Funds may have a specific style, for example, value or growth Stocks represent part ownership, or equity, in companies, and the aim of stock ownership is to see the

cks are often categorized by their market capitalization (or caps), and can be classified in three basic sizes: small, medium, and large. Many mutual funds invest primarily in companies of one of these sizes and are thus classified

Funds which involve some component of stock picking are said to be actively managed, whereas index funds try as well as possible to mirror

they make investment decisions for their portfolios. Some fund managers use a value approach to stocks, searching for stocks that are undervalued when compared to other similar companies. Another approach

o find stocks that are growing faster than their competitors, or the market as a whole. Some managers buy both kinds of stocks, building a portfolio of both growth and value stocks. Since equity funds invest in stocks, they have the

ore returns. On the other hand they carry greater risks too.

Fund assets are typically mainly in stock, with some amount of cash, which is generally quite The objective of an equity fund is long-

m growth through capital gains, although historically dividends have also been an important source of total return. Specific equity funds may focus on a certain sector of the

Index funds invest in securities to mirror a market index, such as the S&P 500. An index fund buys and sells securities in a manner that mirrors the composition of the selected

The fund's performance tracks the underlying index's performance. Turnover of securities in an index fund's portfolio is minimal. As a result, an index fund generally has

Index Funds replica

index, S&P NSE 50 index (Nifty), etc these schemes invest in the securities in the same

weight age comprising of an index. NAVs of such schemes would rise or fall in accordance

with the rise or fall in the index, though not exactly by the same percentage due to some

factors known as “ tracking error” in technical terms. Necessary disclosures in this regard are

made in the offer document of the mutual fund scheme.

funds launched by the mutual funds, which are traded on the stock exchanges

TOP 10 OPEN ENDED INDEX FUNDS

Rank Scheme Name

1 HDFC Index Fund - Sensex Plus Plan

2 ICICI Prudential Index Fund

3 LIC MF Index Fund - Sensex Advantage Plan - Growth

4 Birla Sun Life Index Fund Growth

5 ING Nifty Plus Fund - Growth

6 Franklin India Index Fund Nifty Plan - Growth

7 HDFC Index Fund - Nifty Plan

8 Franklin India Index Fund Sensex Plan - Growth

9 Canara Robeco Nifty Index Growth

10 UTI Nifty Fund - Growth

48

Index Funds replicate the portfolio of a particular index such as the BSE Sensitive



se or fall in the index, though not exactly by the same percentage due to some


made in the offer document of the mutual fund scheme. There are also exchange

funds launched by the mutual funds, which are traded on the stock exchanges.

TOP 10 OPEN ENDED INDEX FUNDS

Scheme Name Date NAV (Rs.)

Last 12 Months

Sensex Plus Jun 18 , 2009 161.71 -1.29

ICICI Prudential Index Fund Jun 18 , 2009 39.47 -4.86

Sensex Growth

Jun 18 , 2009 25.51 -6.5

Birla Sun Life Index Fund - Jun 18 , 2009 42.56 -7.19

Growth Jun 18 , 2009 21.21 -7.34

Franklin India Index Fund - NSE Jun 18 , 2009 33.48 -7.38

Nifty Plan Jun 18 , 2009 37.74 -7.38

Franklin India Index Fund - BSE Jun 18 , 2009 40.04 -7.51

Canara Robeco Nifty Index - Jun 18 , 2009 22.62 -7.52

Growth Jun 18 , 2009 26.67 -7.65

te the portfolio of a particular index such as the BSE Sensitive



se or fall in the index, though not exactly by the same percentage due to some


There are also exchange traded index

.

Last 12 Months

Since Inception

1.29 26.26

4.86 20.65

16.4

7.19 23.92

7.34 15.18

7.38 19.37

7.38 20.58

7.51 19.16

7.52 18.98

7.65 11.06

Growth funds - A growt

rapidly. Growth companies tend development rather than pay dividends. Growth funds are focused on generating capital gains rather than income. Growth funds are those mutual funds that aim to achieve capital apprecinvesting in growth stocks. They focus on those companies, which are experiencing significant earnings or revenue growth, rather than companies that pay out dividends. Growth funds tend to look for the fastestwilling to take more risk and pay a premium for their stocks in an effort to build a portfolio of companies with above- In India, growth funds became popular after the tremendous companies during the post economic reforms period. The rapid growth of Indian industry attracted investors’ money to sectors of high growth and as a resultbeing.

Objective of Growth Funds

The objective of growth funds is to achieve capital appreciation by in stocks of those companies, which are registering significant earnings or revenue growth. Growth funds offer tremendous opportunities for growth, when the financial market is bullish.

In general, growth funds are more volatile than other types of funds, rising more than other funds in bull markets and falling more in bear markets. Only aggressive investors, or those with enough time to make up for short

Dividend Yield Funds or Value Funds

This is a fund that invests in "value" stocks. Companies rated as value stocks usually are older, established businesses that pay dividends. In thisfund, the co. gives part of it profit to mutual fund ho

Thematic funds –Thematic funds identify themes based on global trends or unique criteria as part of their stock picking guidelines. Some funds may focinvestment process. DWS Global Themes Equity Fund and DBS Shenton Global Opportunities Fund are example of global equity funds that have explicit global themes.

A thematic fund invests in a single many as 12-15 sectors, so it’s pretty diversified in that sense. The theme is not just one or two sectors, rather a broader opportunity encompassing several sectors. For instance, the outsourcing opportunity is not restricted to technology; it includes manufacturing and pharma among other sectors. The capital goods and infrastructure theme includes several sectors.

49

A growth fund invests in the stocks of companies that are growing

rapidly. Growth companies tend to reinvest all or most of their profits for research and development rather than pay dividends. Growth funds are focused on generating capital gains

Growth funds are those mutual funds that aim to achieve capital apprecinvesting in growth stocks. They focus on those companies, which are experiencing significant earnings or revenue growth, rather than companies that pay out dividends. Growth funds tend to look for the fastest-growing companies in the market. Growth managers are willing to take more risk and pay a premium for their stocks in an effort to build a portfolio of

-average earnings momentum or price appreciation. In India, growth funds became popular after the tremendous growth of the Indian

companies during the post economic reforms period. The rapid growth of Indian industry attracted investors’ money to sectors of high growth and as a result growth funds came into

wth funds is to achieve capital appreciation by in stocks of those companies, which are registering significant earnings or revenue growth. Growth funds offer tremendous opportunities for growth, when the financial market is bullish.

unds are more volatile than other types of funds, rising more than other funds in bull markets and falling more in bear markets. Only aggressive investors, or those with enough time to make up for short-term market losses, should buy these funds.

or Value Funds -

This is a fund that invests in "value" stocks. Companies rated as value stocks usually are older, established businesses that pay dividends. In thisfund, the co. gives part of it profit to mutual fund holders, which is called dividend.

Thematic funds identify themes based on global trends or unique criteria as part of their stock picking guidelines. Some funds may focus on just one major theme as the backbone for their investment process. DWS Global Themes Equity Fund and DBS Shenton Global Opportunities Fund are example of global equity funds that have explicit global themes.

A thematic fund invests in a single theme, but there are several sectors within it, maybe as 15 sectors, so it’s pretty diversified in that sense. The theme is not just one or two

sectors, rather a broader opportunity encompassing several sectors. For instance, the portunity is not restricted to technology; it includes manufacturing and pharma

among other sectors. The capital goods and infrastructure theme includes several sectors.

companies that are growing

to reinvest all or most of their profits for research and development rather than pay dividends. Growth funds are focused on generating capital gains

Growth funds are those mutual funds that aim to achieve capital appreciation by investing in growth stocks. They focus on those companies, which are experiencing significant earnings or revenue growth, rather than companies that pay out dividends. Growth

wth managers are willing to take more risk and pay a premium for their stocks in an effort to build a portfolio of

average earnings momentum or price appreciation. growth of the Indian

companies during the post economic reforms period. The rapid growth of Indian industry growth funds came into

wth funds is to achieve capital appreciation by in stocks of those companies, which are registering significant earnings or revenue growth. Growth funds offer

unds are more volatile than other types of funds, rising more than other funds in bull markets and falling more in bear markets. Only aggressive investors, or those

term market losses, should buy these funds.

This is a fund that invests in "value" stocks. Companies rated as value stocks usually are older, established businesses that pay dividends. In this types of mutual

, which is called dividend.

Thematic funds identify themes based on global trends or unique criteria as part of their stock us on just one major theme as the backbone for their

investment process. DWS Global Themes Equity Fund and DBS Shenton Global Opportunities Fund are example of global equity funds that have explicit global themes.

theme, but there are several sectors within it, maybe as 15 sectors, so it’s pretty diversified in that sense. The theme is not just one or two

sectors, rather a broader opportunity encompassing several sectors. For instance, the portunity is not restricted to technology; it includes manufacturing and pharma

among other sectors. The capital goods and infrastructure theme includes several sectors.

Sectoral Funds –These are the funds/schemes which invest in the securities of only those sectors or industries as

specified in the offer documents. e.g. Pharmaceuticals, Software, Fast Moving Consumer

Goods (FMCG), Petroleum stocks, etc. The returns in these funds are dep

performance of the respective sectors/industries. While these funds may give higher returns,

they are more risky compared to diversified funds. Investors need to keep a watch on the

performance of those sectors/industries and must exit at an

TOP10 OPENENDED SECTORAL EQUITY FUNDS

Rank Scheme Name

1 Reliance Banking Fund

2 UTI Thematic Banking Sector Fund - Growth

3 UTI Thematic Transportation and Logistics Fund - Growth

4 Sahara Infrastructure Fund Variable Pricing - Growth

5 Sahara Infrastructure Fund Fixed Pricing - Growth

6 Taurus Infrastructure Fund Growth

7 Reliance Pharma Fund

8 Reliance Diversified Power Sector Fund - Institutional - Growth

9 Reliance Diversified Power Sector Fund - Growth

10 UTI MNC Fund - Growth

50

These are the funds/schemes which invest in the securities of only those sectors or industries as


Goods (FMCG), Petroleum stocks, etc. The returns in these funds are dep



performance of those sectors/industries and must exit at an appropriate time.

TOP10 OPENENDED SECTORAL EQUITY FUNDS


Last 12 Months

Reliance Banking Fund - Growth Jun 18 , 2009 58.58 17.22

UTI Thematic Banking Sector Jun 18 , 2009 26.11 15.02

Thematic Transportation Growth

Jun 18 , 2009 14.83 7.39

Sahara Infrastructure Fund -Growth

Jun 18 , 2009 14.06 5.79

Sahara Infrastructure Fund -Growth

Jun 18 , 2009 13.75 5.01

Taurus Infrastructure Fund - Jun 18 , 2009 10.86 4.12

Reliance Pharma Fund - Growth Jun 18 , 2009 25.34 3.06

Reliance Diversified Power Sector Growth

Jun 18 , 2009 59.12 1.54

Reliance Diversified Power Sector Jun 18 , 2009 60.45 1.4

Growth Jun 18 , 2009 34.79 1.16

These are the funds/schemes which invest in the securities of only those sectors or industries as


Goods (FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the



Last 12 Months

Since Inception

17.22 33.82

15.02 19.94

7.39 7.75

5.79 11.2

5.01 10.43

4.12 3.67

3.06 20.26

1.54 -12.86

1.4 42.16

1.16 13.14

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=RC030

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=UT159

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=FI030




http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=TR012





Diversified Equity Funds

A mutual fund scheme that achieves the benefits of diversification by investing in the stocks of companies across a large number of sectors. As a result, it minimizes the risk of exposure to a single company or sectorequities, except for a very small portion in liquid money market securities, but is not focused on any one or few sectors or shares, may be termed a diversified equity fund. While exposed to all equity price risk diversified equthrough diversification. They have mainly market risk expose. Such general proposal proposes but diversified funds are clearly at the lower risk level than the growth funds

TOP10 OPEN-ENDED

Rank Scheme Name

1 Sundaram BNP Paribas Financial Services Opportunities Fund Retails - Growth

2 Sundaram BNP Paribas Media & Entert Opportunities Fund - Growth

3 JM Mid Cap Fund - Growth

4 Birla Sun Life Dividend Yield Plus Growth

5 UTI Opportunities Fund

6 ICICI Prudential Focused Equity Fund - Institutional I -

7 Sahara Growth Fund -

8 Benchmark Equity And Derivative Opportunities Fund - Growth

9 HDFC Top 200 - Growth

10 ICICI Prudential Focused Equity Fund - Retail - Growth

51

Diversified Equity Funds –

mutual fund scheme that achieves the benefits of diversification by investing in the stocks of companies across a large number of sectors. As a result, it minimizes the risk of exposure to a single company or sector. Diversified equity fund is a fund, that seeks to invest only on equities, except for a very small portion in liquid money market securities, but is not focused on any one or few sectors or shares, may be termed a diversified equity fund. While exposed to all equity price risk diversified equity fund seek to reduce the sector or stock specific risk through diversification. They have mainly market risk expose. Such general proposal proposes but diversified funds are clearly at the lower risk level than the growth funds

ENDED DIVERSIFIED EQUITY FUNDS


Last 12 Months

Sundaram BNP Paribas Financial Services Opportunities Fund -

Jun 18 , 2009

12.66 26.04

Sundaram BNP Paribas Media & Entert Opportunities Fund - Retails

Jun 18 , 2009

12.02 20.06

Growth Jun 18 , 2009

19.51 11.93

Birla Sun Life Dividend Yield Plus - Jun 18 , 2009

50.55 10.13

UTI Opportunities Fund - Growth Jun 18 , 2009

18.56 8.41

ICICI Prudential Focused Equity Growth

Jun 18 , 2009

10.6 6.64


63.42 6.18

Benchmark Equity And Derivative Growth

Jun 18 , 2009

11.18 6.12


138.98 5.82

ICICI Prudential Focused Equity Growth

Jun 18 , 2009

10.49 5.64

mutual fund scheme that achieves the benefits of diversification by investing in the stocks of companies across a large number of sectors. As a result, it minimizes the risk of exposure

hat seeks to invest only on equities, except for a very small portion in liquid money market securities, but is not focused on any one or few sectors or shares, may be termed a diversified equity fund. While exposed

ity fund seek to reduce the sector or stock specific risk through diversification. They have mainly market risk expose. Such general proposal proposes

DIVERSIFIED EQUITY FUNDS

Last 12 Months

Since Inception

26.04 25.94

20.06 20.06

11.93 14.38

10.13 29.27

8.41 17.11

6.64 5.59

6.18 31.14

6.12 7.06

5.82 23.22

5.64 4.57

ELSS – Equity Linked Saving Scheme provides tax benefit to the investors. They operate like any other growth fund ( and that’s why are as risky). However, as investor in these schemes gets an income-tax rebate of 20 per cent (for a maximum of Rs 10,000) under section 88. Essentially an incentive for the investor ( who is otherwise investing in fixedincome instruments like the Public Provident Fund primarily for saving tax on his orannual salary or business income) a chance to participate in capital appreciation that can be delivered by investing in equity shares. That’s also why these schemes also come with a three-year lock- in period. Also while other tax planning schemeELSS offers no such assurance.

TOP10 OPENENDED ELSS(TAX) FUNDS

Rank Scheme Name

1 Sahara Taxgain - Growth

2 Sundaram BNP Paribas Taxsaver - (Open Ended Fund)

3 Reliance Tax Saver Fund Growth

4 Taurus Taxshield - Growth

5 HDFC Taxsaver - Growth

6 HSBC Tax Saver Equity Fund Growth

7 Religare Tax Plan - Growth

8 Fidelity Tax Advantage Fund Growth

9 Franklin India TaxshieldGrowth

10 Franklin India Index Tax Fund

52

Equity Linked Saving Scheme provides tax benefit to the investors. They operate like any other growth fund ( and that’s why are as risky). However, as investor in these

tax rebate of 20 per cent (for a maximum of Rs 10,000) under section 88. Essentially an incentive for the investor ( who is otherwise investing in fixedincome instruments like the Public Provident Fund primarily for saving tax on his orannual salary or business income) a chance to participate in capital appreciation that can be delivered by investing in equity shares. That’s also why these schemes also come with a

in period. Also while other tax planning schemes guarantee returns, an ELSS offers no such assurance.

TOP10 OPENENDED ELSS(TAX) FUNDS


Last 12 Months


24.87 3.86

Sundaram BNP Paribas Taxsaver (Open Ended Fund) - Growth

Jun 18 , 2009

32.77 0.92

Reliance Tax Saver Fund - Jun 18 , 2009

13.8 0.06


25.59 -0.81


142.11 -1.34

Tax Saver Equity Fund - Jun 18 , 2009

10.25 -2.08


11.12 -2.2

Fidelity Tax Advantage Fund - Jun 18 , 2009

13.74 -3.76

Franklin India Taxshield - Jun 18 , 2009

138.88 -3.87

Franklin India Index Tax Fund Jun 18 , 2009

32.84 -6.88

Equity Linked Saving Scheme provides tax benefit to the investors. They operate like any other growth fund ( and that’s why are as risky). However, as investor in these

tax rebate of 20 per cent (for a maximum of Rs 10,000) under section 88. Essentially an incentive for the investor ( who is otherwise investing in fixed-income instruments like the Public Provident Fund primarily for saving tax on his or her annual salary or business income) a chance to participate in capital appreciation that can be delivered by investing in equity shares. That’s also why these schemes also come with a

s guarantee returns, an

Last 12 Months

Since Inception

27.72

16.38

9.14

13.3

24.55

0.99

4.39

10.08

29.44

15.38

How to Select an Equity Fund

Compare a fund with its peers

One of the basic fundamental of benchmarking is to evaluate funds with in the same category. For example, if you are evaluating the performance of a thematic fund, say IT based fund, then you should compare its performance with another similar IT bawith banking sector fund for example will not give the correct picture. Comparing a fund over stock market cycle (boom and bust) will give investors a good idea about how the fund has fared.

Compare returns against those of the bench

Every fund mentions a benchmark index in the Offer Document. It can be BSE 100, BSE 200, Nifty or any other index. The benchmark index serves as a guidepost for both the fund manager and the investor. Compare how the fund has fared against thea period of 3-5 years. The funds that have outperformed their benchmark indices during stock market volatility must be given a close look.

Compare against the fund's own performance

Apart from comparing a fund with its peers and bencits historical performance. By evaluating a fund against its own historical performance, you can get an idea about consistent performers.

Current scenario of equity funds

With stock markets reigning at its all time of investors without caring a damn about their risk profiles are looking at investing in equities and / or equity funds. Large corporate houses too have been lured by the equity mania. As a result of this, Mutual Funds are raking in huge monies in the equity segment.

The total AUM of the industry stood at Rs.2007. Out of this Rs. 42,461 crores representing almost 26% wasis an increase of over 80% in the last one year. The mutual fund with highest equity funds under management is UTI MF, having almost Rs. 7,800 croresector players, Franklin Templeton is at the top with an equity corpus of Rs. HDFC MF comes next with Rs. 4559.24 crores in its equity segment. The five top funds in this category account for 58% of the total equity funds in the mutual funds industry. True to the general perception about mutual funds that they are a mthe diversified equity schemes had the highest corpus with over 80% of the famong the top 5 players below.

53

How to Select an Equity Fund

peers:

One of the basic fundamental of benchmarking is to evaluate funds with in the same category. For example, if you are evaluating the performance of a thematic fund, say IT based fund, then you should compare its performance with another similar IT based fund. Comparing it with banking sector fund for example will not give the correct picture. Comparing a fund over stock market cycle (boom and bust) will give investors a good idea about how the fund has

Compare returns against those of the benchmark index:

Every fund mentions a benchmark index in the Offer Document. It can be BSE 100, BSE 200, Nifty or any other index. The benchmark index serves as a guidepost for both the fund manager and the investor. Compare how the fund has fared against the benchmark index over

5 years. The funds that have outperformed their benchmark indices during stock market volatility must be given a close look.

Compare against the fund's own performance:

Apart from comparing a fund with its peers and benchmark index, investors should evaluate its historical performance. By evaluating a fund against its own historical performance, you can get an idea about consistent performers.

Current scenario of equity funds

With stock markets reigning at its all time high, Equity is the buzzword these days. All kinds of investors without caring a damn about their risk profiles are looking at investing in equities and / or equity funds. Large corporate houses too have been lured by the equity

Mutual Funds are raking in huge monies in the equity segment.

The total AUM of the industry stood at Rs.164674.07 crores as on June . Out of this Rs. 42,461 crores representing almost 26% was in the equity segment. This

n increase of over 80% in the last one year. The mutual fund with highest equity funds under management is UTI MF, having almost Rs. 7,800 crores in its kitty. Among the private sector players, Franklin Templeton is at the top with an equity corpus of Rs. HDFC MF comes next with Rs. 4559.24 crores in its equity segment. The five top funds in this category account for 58% of the total equity funds in the mutual funds industry. True to the general perception about mutual funds that they are a means of diversifying across stocks, the diversified equity schemes had the highest corpus with over 80% of the f

below.

One of the basic fundamental of benchmarking is to evaluate funds with in the same category. For example, if you are evaluating the performance of a thematic fund, say IT based fund,

sed fund. Comparing it with banking sector fund for example will not give the correct picture. Comparing a fund over stock market cycle (boom and bust) will give investors a good idea about how the fund has

Every fund mentions a benchmark index in the Offer Document. It can be BSE 100, BSE 200, Nifty or any other index. The benchmark index serves as a guidepost for both the fund

benchmark index over 5 years. The funds that have outperformed their benchmark indices during stock

hmark index, investors should evaluate its historical performance. By evaluating a fund against its own historical performance, you

high, Equity is the buzzword these days. All kinds of investors without caring a damn about their risk profiles are looking at investing in equities and / or equity funds. Large corporate houses too have been lured by the equity

Mutual Funds are raking in huge monies in the equity segment.

164674.07 crores as on June in the equity segment. This

n increase of over 80% in the last one year. The mutual fund with highest equity funds in its kitty. Among the private

sector players, Franklin Templeton is at the top with an equity corpus of Rs. 6637.4 crores. HDFC MF comes next with Rs. 4559.24 crores in its equity segment. The five top funds in this category account for 58% of the total equity funds in the mutual funds industry. True to

eans of diversifying across stocks, the diversified equity schemes had the highest corpus with over 80% of the funds in equities

Over the last six months the equity corpus of the industry swelled by more than Rs. 12,000 crores. In this the diversified schemes and tax planning schemes saw rise of about Rs. 12,650 crores and Rs. 232.2 crores respectively. But there was a fall in the csectoral schemes. Major gainers in the equity segment over last 6 months remained Reliance MF, which mopped up Rs. 1888 crores. Franklin closely followed at Rs. 1809 croreMutual Fund was at a distant third place growing by Rs. 14corpus inflated by Rs. 1151 croreNew Fund Offer made by each of these AMCs.

So diversified equity funds has the better preference than the other equity funds becausediversification of stocks and ELSS schemes are giving better return due to their locking system of 3 years as long term investments.

0

20

40

60

80

100

DIVERSIFIED

54

Over the last six months the equity corpus of the industry swelled by more than Rs. 12,000 crores. In this the diversified schemes and tax planning schemes saw rise of about Rs. 12,650

and Rs. 232.2 crores respectively. But there was a fall in the corpus of index and sectoral schemes. Major gainers in the equity segment over last 6 months remained Reliance MF, which mopped up Rs. 1888 crores. Franklin closely followed at Rs. 1809 croreMutual Fund was at a distant third place growing by Rs. 1435 crores and Tata MFs equity corpus inflated by Rs. 1151 crores. But the major factor helping in this growth remained the New Fund Offer made by each of these AMCs.

So diversified equity funds has the better preference than the other equity funds becausediversification of stocks and ELSS schemes are giving better return due to their locking system of 3 years as long term investments.

TAX PLANNING INDEX SECTOR

Over the last six months the equity corpus of the industry swelled by more than Rs. 12,000 crores. In this the diversified schemes and tax planning schemes saw rise of about Rs. 12,650

orpus of index and sectoral schemes. Major gainers in the equity segment over last 6 months remained Reliance MF, which mopped up Rs. 1888 crores. Franklin closely followed at Rs. 1809 crores. HDFC

35 crores and Tata MFs equity . But the major factor helping in this growth remained the

So diversified equity funds has the better preference than the other equity funds because of its diversification of stocks and ELSS schemes are giving better return due to their locking

SECTOR

Yearly return of

SECTORSAUTO

UTI TRANSPORTATION AND JM AUTO SECTOR

BANKRELIANCE BANKING RETAILUTI BANKING SECTOR REGJM FINANCIAL SERVICES SECTOR

FMCGICICI PRUDENTIAL FMCGMAGNUM FMCGFRANKLIN FMCG

INDEX FUNDSTATA INDEX SENSEX BICICI PRUDENTIAL INDEX RETAILUTI SUNDERICICI PRUDENTIAL SPICEFRANKLIN INDIA INDEX NSE NIFTYPRINCIPAL INDEXLICMF INDEX NIFTYMAGNUM INDEXHDFC INDEX NIFTYUTI NIFTY INDEXCANARA ROBECO NIFTY INDEX

INTERPRETATION:-The above table shows return and 2008. In auto sector, both of the funds done due to the upside of the automobile marketmutual funds have given better result in comparison to its return in the equity marketof the banking sectors, rn 2007and in the mutual fund industry. affected the banking funds. Except the Allahabad Bankprevious year. In case of the FMCG sector equity funds, one fund have given better result2008 and the other two funds had comparatively less return than 2007.And the index funds adepended on the index - SENSEXsome earned better return and others earned poor return.

55

Yearly return of equity mutual funds sector wise(Table-1)

SECTORS 2007AUTO

UTI TRANSPORTATION AND LOGISTICS 17.370.97

BANKRELIANCE BANKING RETAIL 66.49UTI BANKING SECTOR REG 76.95JM FINANCIAL SERVICES SECTOR 95.11

FMCGICICI PRUDENTIAL FMCG 42.75

28.3823.03

INDEX FUNDS0

ICICI PRUDENTIAL INDEX RETAIL 46.6346.6546.78

FRANKLIN INDIA INDEX NSE NIFTY 52.2253.6254.7956.4665.3452.21

CANARA ROBECO NIFTY INDEX 49.48

The above table shows return of sector-wise mutual funds in 2007 and 2008. In auto sector, both of the funds gives better return in 2008 than 2007

upside of the automobile market in 2008. But the automobilehave given better result in comparison to its return in the equity market

2007 was the more profitable than 2008, both in the equity sector and in the mutual fund industry. The banking sector faced a heavy loss in 2007. That’s why it affected the banking funds. Except the Allahabad Bank, no bank gave better return than the

In case of the FMCG sector equity funds, one fund have given better result2008 and the other two funds had comparatively less return than 2007.And the index funds a

SENSEX & NIFTY , and the stock market is volatile in its nature, some earned better return and others earned poor return.

2008

49.3959.17

39.3246.3258.18

27.4333.0345.38

0.0650.3950.7751.4952.1152.4252.7353.2653.4951.9951.50

wise mutual funds in 2007 2007. This effect is

. But the automobile sectorised have given better result in comparison to its return in the equity market. In case

profitable than 2008, both in the equity sector The banking sector faced a heavy loss in 2007. That’s why it

better return than the In case of the FMCG sector equity funds, one fund have given better result in

2008 and the other two funds had comparatively less return than 2007.And the index funds are the stock market is volatile in its nature,

Return of equity funds monthly, quarterly, half

Funds,which gave good return

Scheme Name1 Mth %

DBS Chola Midcap Fund -Growth

10.74

JM Basic Fund - Growth 9.42

JM Mid Cap Fund - Growth 10.70

JM Small & Mid-Cap Fund -Regular - Growth

13.53

Principal Junior Cap Fund -Growth

8.90

Sahara Midcap Fund -Growth

12.38

SBI Magnum Midcap Fund -Growth

13.88

SBI Magnum Sector Umbrella - Emerging Businesses - Growth

14.94

Sundaram BNP paribas capex opportunities fund- Growth

9.26

Taurus Infrastructure Fund -Growth

16.15

INTERPRETATION

The Table-2 is showing the best equity funds returnand 3 years. From the above funds, TAURUS INFRASTRUCTURE FUND

56

Return of equity funds monthly, quarterly, half-yearly, yearly and in 3 years

Funds,which gave good return as on 18th june 2009

(Table-2)

Performance in different time periods

1 Mth % 3 Mths % 6 Mths % 1 Yr %

10.74 75.78 50.27 -12.99

9.42 102.98 60.21 -37.34

10.70 70.54 76.56 11.93

13.53 81.23 26.87 -58.12

8.90 91.77 68.49 -0.21

12.38 80.73 54.21 -7.75

13.88 88.41 58.50 -24.90

14.94 89.94 55.77 -21.58

9.26 81.24 50.01 -9.83

16.15 108.5 77.74 4.12

is showing the best equity funds return as per 1 month,3 months, 6 months, 1 year funds, TAURUS INFRASTRUCTURE FUND-GROWTH

yearly, yearly and in 3 years

in different time periods(IN %)

1 Yr % 3 Yrs %

10.26

6.14

6.81

N/A

11.10

12.29

4.65

4.05

16.04

N/A

months, 6 months, 1 year GROWTH has the

http://www.mutualfundsindia.com/open_tax_sect.asp?perform_on=30days



http://www.mutualfundsindia.com/open_tax_sect.asp?perform_on=1yr

http://www.mutualfundsindia.com/open_tax_sect.asp?perform_on=3yrs

best return in 1 month, 3 months, and 6 months. In 1 year, JM MIDCAP FUNDin 3 years, SUNDARAM BNP PARIBAS CAPEX OPPORTUNITIES FUNDbest performer. But from overall point of view, all midcap funds all good performers are the growth funds.

So, it is clear that midmutual fund field. Also the mid cap co.s are performing good in the recession time, they are also the good performers in mutual fund.

EQUITY FUNDS

SCHEMES

HDFC Arbitrage Fund - IP -Growth

HDFC Arbitrage Fund - Retail Growth

ICICI Prudential Equity & Derivatives Fund - I O - IP -Growth

ICICI Prudential Equity & Derivatives Fund - I O - Retail Growth

IDFC Arbitrage Fund - Plan A (Regular) - Growth

The above table shows the equitarbitrage funds and the other twosanticipation, and the security market is in the recession period, these funds are giving more and more less return.

57

in 1 month, 3 months, and 6 months. In 1 year, JM MIDCAP FUNDin 3 years, SUNDARAM BNP PARIBAS CAPEX OPPORTUNITIES FUND-GROWTH arebest performer. But from overall point of view, all midcap funds have given the good return and all good performers are the growth funds.

So, it is clear that mid-cap funds and growth funds are the good performers in the ld. Also the mid cap co.s are performing good in the recession time, they are also

the good performers in mutual fund.

EQUITY FUNDS GIVING BAD RETURN

Table-3

1 month 3 months 6 months 1 year

- 0.19 1.17 3.08 7.36

Retail - 0.18 1.11 2.95 7.10

-1.07 1.23 3.10 6.58

Retail -1.08 1.08 2.86 6.26

Plan A 0.42 0.61 1.97 5.41

equity funds ,which gave bad return. Two of the above table are arbitrage funds and the other twos are derivatives fund. As derivatives are related to the anticipation, and the security market is in the recession period, these funds are giving more and

in 1 month, 3 months, and 6 months. In 1 year, JM MIDCAP FUND-GROWTH and GROWTH are the

have given the good return and

cap funds and growth funds are the good performers in the ld. Also the mid cap co.s are performing good in the recession time, they are also

1 year 3 years

7.36 N/A

7.10 N/A

6.58 N/A

6.26 N/A

5.41 N/A

y funds ,which gave bad return. Two of the above table are are derivatives fund. As derivatives are related to the

anticipation, and the security market is in the recession period, these funds are giving more and

EQUITY FUNDS SECTOR WISE RETURN IN %

SCHEMES

Franklin Pharma Fund -Growth

Reliance Pharma Fund -Growth

SBI Magnum Sector Umbrella - Pharma - Growth

UTI Growth Sector Fund -Pharma and Healthcare -Growth

INTERPRETATION –

In pharma sector, in 1 month and 3 months6 months, FRANKLIN PHARMA FUND has the best return. But in long term periods, RELIANCE PHARMA FUND is the best. always a reasonable return to its customers, evemarket and equity funds, it is not a looser. This sector is a trusted sector for investment.Ranbaxy, Dr.Reddy’s are giving reasonable return always inthe pharma sector equity funds.

58

EQUITY FUNDS SECTOR WISE RETURN IN %

PHARMA SECTOR

Table-4


11.12 42.97 38.25 -0.77

13.81 44.99 32.24 3.06

15.41 57.21 37.54 -22.95

7.24 27.85 19.89 -12.93

and 3 months SBI MAGNUM UMBRELLA has the best return, 6 months, FRANKLIN PHARMA FUND has the best return. But in long term periods, RELIANCE PHARMA FUND is the best. Pharma sector is the only sector , which is giving always a reasonable return to its customers, even in the recession period. Both in the share market and equity funds, it is not a looser. This sector is a trusted sector for investment.

eddy’s are giving reasonable return always in spite of slowdown. This also affect

3 years

8.98

18.47

-4.85

5.85

SBI MAGNUM UMBRELLA has the best return, in 6 months, FRANKLIN PHARMA FUND has the best return. But in long term periods,

Pharma sector is the only sector , which is giving n in the recession period. Both in the share

market and equity funds, it is not a looser. This sector is a trusted sector for investment.spite of slowdown. This also affect

SCHEMES

Birla Sun Life New Millennium - Growth

DSP BlackRock Technology.com Fund - Reg Growth

Franklin Infotech Fund -Growth

ICICI Prudential Technology Fund - Growth

Kotak Tech Fund

Tata Life Sciences and Technology Fund - Appr

INTERPRETATION –

Here, in 1month, 3 months, 6 months and in 1 year performance, the TATA LIFE SCINCES AND TECHNOLOGY FUNDSTECHNOLOGY.COM FUND has the best top performers of these sectors,comparison with other sectors.

59

INFOTECH SECTOR

Table-5

1 month 3 month 6 month 1 year

5.47 56.75 32.50 -26.23

Reg -10.19 53.89 32.36 -26.03

10.96 45.48 38.58 -21.53

ICICI Prudential Technology 13.81 52.07 37.17 -32.36

5.54 43.03 33.59 -25.09

14.07 61.03 57.79 -2.47

1month, 3 months, 6 months and in 1 year performance, the TATA LIFE SCINCES AND TECHNOLOGY FUNDS-APPR has the best return and in 3 years, DSP BLACKROCK TECHNOLOGY.COM FUND has the best return. As here given returns are the returns of the top performers of these sectors, it shows that this sector is not giving better return in

1 year 3 years

26.23 2.05

26.03 12.26

21.53 -2.13

32.36 -0.67

25.09 -6.25

9.32

1month, 3 months, 6 months and in 1 year performance, the TATA LIFE SCINCES APPR has the best return and in 3 years, DSP BLACKROCK

As here given returns are the returns of the it shows that this sector is not giving better return in

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=PI016

BANKING AND FINANCIAL SERVICES SECTOR

SCHEMES

JM Financial Services Sector Fund - Growth

Reliance Banking Fund -Growth

Reliance Banking Fund - IP -Growth

Religare Banking Fund -Growth

Sahara Banking and Financial Services Fund - Growth

Sundaram BNP Paribas Financial Services Opportunities Fund - Ret -Growth

INTERPRETATION

In one month, return of all are below FINANCIAL SERVICES FUND PARIBAS FINANCIAL SERVICES RELIANCE BANKING FUND and it also gave good return 32.49%.BANKING AND FINANCIAL SERVICES FUND is the better scheme in banking and financial service sector. This sector is going in loss now. No bank except Allahabad Bank gave better result in 2008. Though SBI and some other banks have given reasonable return 2009, banking sector funds are still giving negative return. Here it can be seen that in 3 month return ,they have given good result, but in one month, their return is poor, because currently fall So current return are below 1.

60

BANKING AND FINANCIAL SERVICES SECTOR

Table-6


-0.10 44.15 1.23 -32.52

-1.87 79.19 42.54 17.22

-1.87 79.19 42.54 N/A

0.51 65.97 29.63 N/A

0.42 86.82 72.72 N/A

-2.61 82.03 37.53 26.04

are below 1. In 3 months and 6 months SAHARA BANKIFINANCIAL SERVICES FUND has the highest return . In 1 year, SUNDARAM BNP PARIBAS FINANCIAL SERVICES FUND is the best and in 3 years, there exists only the

and it also gave good return 32.49%. So, overally SAHARA BANKING AND FINANCIAL SERVICES FUND is the better scheme in banking and financial

is going in loss now. No bank except Allahabad Bank gave better ough SBI and some other banks have given reasonable return 2009, banking

sector funds are still giving negative return. Here it can be seen that in 3 month return ,they have given good result, but in one month, their return is poor, because currently fall of banking stocks.

3 years

N/A

32.49

N/A

N/A

N/A

N/A

1. In 3 months and 6 months SAHARA BANKING AND SUNDARAM BNP

3 years, there exists only the So, overally SAHARA

BANKING AND FINANCIAL SERVICES FUND is the better scheme in banking and financial is going in loss now. No bank except Allahabad Bank gave better

ough SBI and some other banks have given reasonable return 2009, banking sector funds are still giving negative return. Here it can be seen that in 3 month return ,they have

of banking stocks.

http://www.mutualfundsindia.com/fundfactsheet1.asp?sname=SN372





INFRASTRUCTURE SECTOR

SCHEMES

AIG Infrastructure and Economic Reform Fund - IP -Growth

Birla Sun Life Infrastructure Fund - Plan A - Growth

Canara Robeco Infrastructure Fund - Growth

ICICI Prudential Banking and Financial Services Fund -Retail - Growth

ICICI Prudential FMCG -Growth

ICICI Prudential Infrastructure Fund - FII Growth

ICICI Prudential Infrastructure Fund - Growth

Sahara Infrastructure Fund -Variable Pricing - Growth

Taurus Infrastructure Fund -Growth

Tata Infrastructure Fund -Growth

INTERPRETATION

As per the above table, TAURUS IFRASTRUCTURE FUND best return, but in long term periods (FUND is the best player. The infrastructure sector has the growth period now and it is thewhich is giving the best return in the equity funds. Infrastructure funds are also the leaders in the overall equity funds. AMCs are n

61

INFRASTRUCTURE SECTOR

Table-7


5.97 63.95 44.65 -9.41

3.31 69.27 48.95 -4.20

1.43 66.90 53.76 -3.68

0.62 71.00 37.17 N/A

7.86 22.64 14.76 -21.80

0.39 46.45 34.85 -6.38

0.34 46.17 34.40 -7.08

6.95 63.56 51.78 5.79

16.15 108.05 77.74 4.12

2.82 59.97 41.26 -12.19

ble, TAURUS IFRASTRUCTURE FUND is the leader, which is giving the periods (1 year and 3 years), SAHARA INFRASTRUCTURE

FUND is the best player. The infrastructure sector has the growth period now and it is thewhich is giving the best return in the equity funds. Infrastructure funds are also the leaders in the overall equity funds. AMCs are now introducing more and more NFOs in this sector.

3 years

N/A

14.97

18.60

N/A

4.94

N/A

25.00

19.76

N/A

17.83

is the leader, which is giving the SAHARA INFRASTRUCTURE

FUND is the best player. The infrastructure sector has the growth period now and it is the sector, which is giving the best return in the equity funds. Infrastructure funds are also the leaders in the

in this sector.







SCHEMES

Bharti AXA Tax Advantage Fund - Eco - Growth

Bharti AXA Tax Advantage Fund - Reg - Growth

Birla Sun Life Tax Plan -Growth

Birla Sun Life Tax Relief 96 -Growth

Canara Robeco Equity Taxsaver - Growth

DBS Chola Taxsaver Fund -Growth

ICICI Prudential Taxplan -Growth

ING Tax Saving Fund -Growth

JM Tax Gain Fund - Growth

Sahara Taxgain - Growth

INTERPRETATION

This table shows the tax saving schemes return. In 1 month, ING TAX SAVING FUND is the best return giver. In 3 months and 6 months, DBS CHOLA TAXSAVER is the best player. But in long term period both in 1 year and 3 years, the SAHARA TAXGAIN GROWTH FUND isthe fund which gave the highest return. Though most of them are the new comers in the market, but SAHARA TAXGAIN is the best player in the tax saver schemes.

62

TAX SAVING SCHEMES

Table-8


2.07 66.16 N/A N/A

2.07 66.05 N/A N/A

4.53 53.01 37.30 -12.71

2.15 67.43 48.35 -10.13

1.82 68.61 N/A N/A

5.15 70.93 49.42 -9.70

7.48 61.05 46.06 -12.52

7.81 60.49 45.31 -25.03

7.94 55.17 33.08 -35.34

6.81 58.82 42.78 3.86

This table shows the tax saving schemes return. In 1 month, ING TAX SAVING FUND is the best return giver. In 3 months and 6 months, DBS CHOLA TAXSAVER is the best player. But in long term period both in 1 year and 3 years, the SAHARA TAXGAIN GROWTH FUND isthe fund which gave the highest return. Though most of them are the new comers in the market, but SAHARA TAXGAIN is the best player in the tax saver schemes.

1 year 3 years

N/A

N/A

12.71 N/A

10.13 N/A

N/A

5.81

12.52 7.01

25.03 1.34

35.34 N/A

16.76

This table shows the tax saving schemes return. In 1 month, ING TAX SAVING FUND is the best return giver. In 3 months and 6 months, DBS CHOLA TAXSAVER is the best player. But in long term period both in 1 year and 3 years, the SAHARA TAXGAIN GROWTH FUND isthe fund which gave the highest return. Though most of them are the new comers in the market,

Equity funds are the funds having both high risk and high return.

Pure equity funds are volatile in nature.

Growth equity funds are giving good return .

Mid cap equity funds are also giving good return.

Sectoral equity funds have also high risk share market.

Though equity funds have risks, tof the mutual fund holders.

In 2007 and 2008, Diversified equity funds were the best preferences ,but now it is the equity funds has the better market.

63

Findings

Equity funds are the funds having both high risk and high return.

are volatile in nature.

Growth equity funds are giving good return .

Mid cap equity funds are also giving good return.

Sectoral equity funds have also high risk – high return and they can be volatile as the

Though equity funds have risks, they are still giving better return and also the preference of the mutual fund holders.

In 2007 and 2008, Diversified equity funds were the best preferences ,but now it is the equity funds has the better market.

high return and they can be volatile as the

hey are still giving better return and also the preference

In 2007 and 2008, Diversified equity funds were the best preferences ,but now it is the

The Mutual fund industry is on uprising moment. It have a good prospect in our country. Due to the pure volatility in the stock market, people are now looking for the mutual fund market for their big investments. As share market has high risk high return,return but with safety, they choose mutual funds and mainly the equity funds those are giving better return in the market. As People have better knowledge about the share markets, they are choosing equity funds for their that’s why I m presented the analysis for what people should choose the equity funds for their investments. The NFOs are entering the market, mainly based on the infrastructure sectorised funds. The equity funds are the only market, in which more and more types of funds can be created as per the situations. Now global funds ,which contains the investment in foreign co.s are a new concept of equity funds Though equity funds are not always affectebut it can be affected by its volatility. So, the investors should have better knowledge about the portfolio of the funds before investing in it . It is no doubt that equity funds have a bright future in Indian Investment Market and it is now is in the way of the excellence.

64

CONCLUSION

The Mutual fund industry is on uprising moment. It have a good prospect in our country. Due to the pure volatility in the stock market, people are now looking for the mutual fund market for their big investments. As share market has high risk high return, and people are looking for better

but with safety, they choose mutual funds and mainly the equity funds those are giving better return in the market. As People have better knowledge about the share markets, they are

investment, but I have done my research in an analytical view, that’s why I m presented the analysis for what people should choose the equity funds for their investments. The NFOs are entering the market, mainly based on the infrastructure sectorised

. The equity funds are the only market, in which more and more types of funds can be Now global funds ,which contains the investment in foreign co.s are

a new concept of equity funds Though equity funds are not always affected by the stock market, but it can be affected by its volatility. So, the investors should have better knowledge about the portfolio of the funds before investing in it . It is no doubt that equity funds have a bright future

d it is now is in the way of the excellence.

The Mutual fund industry is on uprising moment. It have a good prospect in our country. Due to the pure volatility in the stock market, people are now looking for the mutual fund market for

and people are looking for better but with safety, they choose mutual funds and mainly the equity funds those are giving

better return in the market. As People have better knowledge about the share markets, they are investment, but I have done my research in an analytical view,

that’s why I m presented the analysis for what people should choose the equity funds for their investments. The NFOs are entering the market, mainly based on the infrastructure sectorised

. The equity funds are the only market, in which more and more types of funds can be Now global funds ,which contains the investment in foreign co.s are

d by the stock market, but it can be affected by its volatility. So, the investors should have better knowledge about the portfolio of the funds before investing in it . It is no doubt that equity funds have a bright future

To prepare my report I have taken the help of some websites & books.

These are :

www.mfea.com

www.mutualfundindia.com

www.amfiindia.com

www.sebigov.in

“INVESTMENT” BY BODDI, KANE, MARCUS,PITABAS MOHANTY

INVESTMENT ANALYSIS & PORTFOLIO MANAGEMENT”

PRASANNA CHANDRA.

65

BIBLIOGRAPHY


BY BODDI, KANE, MARCUS,PITABAS MOHANTY

NALYSIS & PORTFOLIO MANAGEMENT” BY


BY BODDI, KANE, MARCUS,PITABAS MOHANTY

BY

Documents

Equity Mutual Funds Project