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ANALYSIS OF MUTUAL FUND INDUSTRIES 00719103909

SUMMER TRAINING PROJECT REPORT

ON

ANALYSIS OF MUTUAL FUND INDUSTRIES

&

CASE STUDY OF KOTAK MAHINDRA

Summer Training Project Report

Submitted for Partial Fulfillment for the Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION (MBA)

UNDER THE SUPERVISION OF

Mr. NITIN GOEL

Asst. professor

SUBMITTED BY:

NITIN GARG

00719103909

GITARATTAN INTERNATIONAL BUSINESS SCHOOL

(Affiliated to GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY)

ROHINI, NEW DELHI 110085

(2009-11)

Gitarattan International Business School


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CERTIFICATE

Gitarattan International Business School 2


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DECLARATION

I, NITIN GARG, a student of Gitarattan International Business school, Rohini (affiliated

to GGSIP University, Delhi), here by declare that this project is the record of authentic

work carried out by me during the academic year 2009-2011 and has not been submitted

to any other university or institute towards the award of any degree.

An attempt has been made by me to provide all relevant and important details

regarding the topic to support the theoretical edifice with concrete research evidence.

This will be helpful to clean the fog surrounding the various aspects of the topic.

I hope that this project will be beneficial for the organization.

Place: New Delhi NITIN GARG

Date: MBA (00719103909)



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ACKNOWLEDGEMENT

I would like to thank my guide Mr. NITIN GOEL for her valuable guidance, the

enthusiasm and supervision for doing this project work. Special thanks to my parents who

very keen in my studies and project work throughout till completion of the project.

I am very thankful to my faculty teacher Mr. NITIN GOEL whos academic and

professional knowledge and vast experience helped me to complete this project work and

special thanks to Guru Gobind Singh Indraprastha University and Gitarattan International

Business School for providing me all their help and environment reaching up to this

point. I would also like to thank my colleagues whose supports were unforgettable.

However, I accept the sole responsibility for any possible errors of omission and would

be extremely grateful to the readers of this project report if they bring such mistakes to

my notice.

NITIN GARGMBA (00719103909)



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TABLE OF CONTENTS

1. EXECUTIVE SUMMARY 6

2. INTRODUCTION 8

Introduction 9

Scope of the study 27

Objectives of the study 28

Limitations of the study 28

Company profile 29

Competitors 31

3. REVIEW OF LITERATURE 34

4. RESEARCH METHODOLOGY AND DESIGN 36

5. HISTORY OF MUTUAL FUNDS 38

6. DATA ANALYSIS AND INTERPRETATION 41

7. FINDINGS 49

8. CONCLUSION 50

9. BIBLIOGRAPHY 52

10. APPENDIX 54



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EXECUTIVE SUMMARRY



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EXECUTIVE SUMMARY

I, NITIN GARG, devoted my training duration in study and analysis of Kotak Mahindra

Mutual Fund Business.

Mutual funds are growing as one of the secure and safe Investment option in current

economic scenario. Thus, performance evaluation of mutual fund is a vital matter of

concern to Investors as well as the fund managers, and researchers.

The core competence of the company is to meet objectives and the needs of the investors

and to provide optimum return for their risk. This study tries to find out the risk and

return allied with the mutual funds.

This project paper is segmented into three sections to explore the link between

conventional subjective and statistical approach of Mutual Fund analysis. To start with,

the first section deals with the introductory part of the paper by giving an overview of the

Mutual fund industry and company profile.

This section also talks about the theory of portfolio analysis and the different measures of

risk and return used for the comparison.

The second section details on the need, objective, and the limitations of the study. It also

deals with the data interpretation and analysis part wherein all the key measures related to

risk and return are done with the interpretation of the results.

The third section deals with detailed analysis of Kotak Mahindra Mutual Fund

performance with comparative analysis of the Mutual Fund Industry as well as the

competitors.While the Fourth and last section deals with the Research Methodology, Data Analysis

using various economic and financial indicators.

At the end, it illustrates the suggestions and findings based on the analysis done in the

previous sections and finally it deals with conclusion part.



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INTRODUCTION



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INTRODUCTION

A mutual fund is a trust that collects the savings of a number of investors who share a common

financial goal and pools it together to cerate a larger resource of money. The money thus

collected is invested by the fund manager in different types of securities depending upon the

objective of the scheme. These could range from shares to debentures to money market

instruments. The securities could be further subdivided into technology securities,

pharmaceutical securities, FMCG securities etc. The income earned through these investments

and the capital appreciation realized by the scheme are shared by its unit holder proportionately

i.e on the basis of the number of units owned by them (pro rata)

Thus a mutual fund is the most suitable investment for the common man as it offers an

opportunity to invest in a diversified, professionally managed portfolio at a relatively low cost.

Anybody with any surplus money that can be invested, even a little as a few thousand rupees can

invest in Mutual funds. Each Mutual fund scheme has a defined investment objective and

strategy. The team undertakes this in the most professional manner.

Markets for equity shares, debentures, bonds and other fixed income instruments; real estate,

derivatives and other assets have reached their maturity and are driven by latest up-to-date



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information. A Mutual Fund is thus the ideal investment vehicle for todays complex and modern

financial scenario.

Price changes in these assets are driven by global events occurring every day, in-fact every

minute in faraway places. It will be very difficult, in-fact next to impossible for an ordinaryindividual to have the knowledge, skills, inclination and time to keep track of events, understand

their implications and act speedily. An individual also finds it difficult to keep tack of ownership

of his assets, investments, brokerage dues and bank transactions etc. A mutual fund is the answer

to these entire situation. It appoints professionally qualified and experience staff that manages

each of theses functions on a full time basis. The costs of hiring these professionals per investor

are very low, as the pool of money invested is large. In effect, the mutual fund vehicle exploits

economic of scale in all three area-research, investment and transaction processing.

While the concept of individuals coming together to invest money collectively is not new, the

mutual fund in its preset form is a 20th century phenomenon. In fact, mutual funds gained

popularity only after the Second World War. Globally, there are thousand of firms offering tens

of thousands of Mutual Funds with different investment objectives. Today, mutual funds

collectively manage almost as such as or more money as compared to banks.

What are Mutual Funds?

Mutual Funds are among the most popular investment in the market. Many people buy them

because of their competitive returns. Others like them because they are easy to buy and sell. Still

others cite the fact that mutual funds, because they hold numerous investments, can spread risk.

A mutual fund, also called an investment company, is an investment vehicle, which pools the

money of many investors. The fund's manager uses the money collected to purchase securities

such as stocks and bonds. The securities purchased are referred to as the fund's portfolio.

When you give your money to a mutual fund, you receive shares of the fund in return. Each share

represents an interest in the fund's portfolio. The value of your mutual fund shares will rise and

fall depending upon the performance of the securities in the portfolio. Like a shareholder in a

corporation, you will receive a proportional share of income and interest generated by the



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portfolio. You can receive these distributions either in cash or as additional shares of the fund. As

a shareholder, you also have certain shareholder voting rights.

A professional money manager manages a mutual funds portfolio. The manager's business is to

choose securities, which are best, suited for the portfolio. The mutual fund manager will invest inmany different securities. This diversification of portfolio assets means that you as an investor

have not pinned all your hopes on one company's success. Also, because the portfolio holds many

securities, the negative impact that any one company may have on the fund is diminished. While

diversification is a benefit of mutual fund investing, a mutual fund is still impacted, either

favorably or unfavorably, by the ups and downs of the market in general.

Mutual funds provide a relatively easy way to invest. Most funds have a minimum investment of

$1000. In addition, a mutual fund stands ready to buy back, or redeem, your shares at any time.

This liquidity allows you to get your money when needed. There is no guarantee, however, that

your shares at the time of redemption will not have decreased in value.

The biggest advantage to mutual funds is diversification. You could make money from a mutual

fund in three ways:

Income is earned from dividends declared by mutual fund schemes from time to time.

If the fund sells securities that have increased in price, the fund has a capital gain. This is

reflected in the price of each unit. When investors sell these units at prices higher thantheir purchase price, they stand to make a gain.

If fund holdings increase in price but are not sold by the fund manager, the fund's unit

price increases. You can then sell your mutual fund units for a profit. This is tantamount

to a valuation gain.



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How does Mutual Funds Work?

The working of Mutual funds can be briefly stated in the form of the points below:

A draft offer document is prepared at the time of launching the fund. Typically, it pre-

specified the investment objectives of the fund, the risk associated, the costs involved in the

process and the broad rules for entry into the exists from the fund and other areas of

operations. In India, as in most countries, these sponsors nee approval from a regulator,

SEBI(Securities Exchange Board of India) in our case. SEBI looks at track records of the

sponsor and its financial strength in granting approval to the fund for commencing

operations.

A sponsor then hires an asset management company to invest the funds according to the

investment objective.

It also hires another entity to be the custodian of the assets of the fund and perhaps a third

one to handle registry work for the unit holder(subscribers) of the fund

In the Indian context, the sponsors promote the Asset Management Company also, in which it

holds a majority stake. In many cases a sponsor can hold a

100% stake in the Asset Management Company(AMC).


Invest

Fund Manager

Securities

Returns

Pool theirmoney with

Invest inGenerates

Passedback to


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TYPES OF MUTUAL FUNDS

Mutual Fund Schemes may be classified on the basis of its structure and its investment objective.

This classification is shown below:

Open ended Funds

An open-end fund is one that is available for subscription all through the year. These do not

have a fixed maturity. Investors can conveniently buy and sell units at Net Assets

Value(NAV) related prices. The key feature of open end schemes is liquidity.

Closed ended Funds

A closed end fund has a stipulated maturity period which generally ranging from 3 to 15

years. The fund is open for subscription only during a specified period. Investors can invest

in the scheme at the time of the initial public issue and thereafter they can bury or sell the

units of the scheme on the stock exchanges where they are listed. In order to provide an exit



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route to the investors, some close ended funds given an option of selling back the units to the

Mutual Fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate

that at least one of the two exit routes is provided to the investors.

Interval Funds

Interval funds combine the features of open ended and close ended schemes. They are open

for sale or redemption during pre-determined intervals at NAV related prices.

Growth Funds

The aim of growth funds is to provide capital appreciation over the medium to long term.

Such Schemes normally invest a majority of their corpus in equities. It has been proven that

returns form stocks, have outperformed most other kind of investments held over the long

term. Growth schemes are ideal for investors having a long term outlook seeking growthover a period of time.

Income Funds

The aim of income funds is to provide regular and steady income to investors. Such schemes

generally invest in fixed income securities such as bonds, corporate debentures and

Government securities. Income Funds are ideal for capital stability and regular income.

Balance Funds

The aim of balanced funds is to provide both growth and regular income. Such schemes

periodically distribute a part of their earning and invest both in equities and fixed income

securities in the proportion indicated in their offer documents. In a rising stock market, the

NAV of these schemes may not normally keep pace, or fall equally when the market falls.

These are ideal for investors looking for a combination of income and moderate growth.

Money Market Funds

The aim of money market funds is to provide easy liquidity, preservation of capital and

moderate income. These schemes generally invest in safer short-term instruments such as

treasury bills, certificates of deposit, commercial paper and inter-bank call money. Returns

on these schemes may fluctuate depending upon the interest rates prevailing in the market.

These are ideal for Corporate and individual investors as a means to park their surplus funds

for short periods.



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Load Funds

A Load fund is one that charges a commission for entry or exit. That is, each time you buy or

sell units in the fund, a commission will be payable. Typically entry and exit loads range

from 1% to 2%. It could be worth paying the load, if the fund has a good performance

history.

No load Funds

A no-Load Fund is one that does not charge a commission for entry or exit. That is, no

commission is payable on purchase or sale of units in the fund. The advantage of a no load

und is that the entire corpus is put to work.

Tax Saving Scheme

These schemes offer tax rebates to the investors under specific provisions of the Indian

Income Tax laws as the Government offers tax incentives for investment in specified

avenues. Investments made in Equity Linked Saving Schemes(ELSS) and Pension Schemes

are allowed as deduction u/s 88 of the Income Tax Act,1961. The Act also provides

opportunities to investors to save capital gains u/s 54EA and 54 EB by investing in Mutual

Funds, provided the capital asset has been sold prior to April 1, 2000 and the amount is

invested before September 30, 2000.

Industry Specific Schemes

Industry Specific schemes invest only in the industries specified in the offer document. The

investment of these funds is limited to specific industries like InfoTech, FMCG and

Pharmaceuticals etc.

Index Schemes

Index Funds attempt to replicate the performance of a particular index such as the BSE

Sensex or the NSE 50

Sectoral Schemes

Sectoral Funds are those, which invest exclusively in a specified industry or a group of

industries or various segments such as A Group shares or initial public offerings.



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NET ASSET VALUE (NAV)

Before venturing into the market related functional aspects of Mutual Funds, it is important to

understand the evaluation criteria of these funds. Just as a business is evaluated by the level of its

profits, a mutual fund is assessed on the basis of its Net Asset Value.

The net asset value of the fund is the cumulative market value of the assets fund net its liabilities.

In other words, if the fund is dissolved or liquidated, by selling off all the assets in the fund, this

is the amount that the shareholders would collectively own. This gives rise to the concept of net

asset value per unit, which is the value, represented by the ownership of one unit in the fund. It is

calculated simply by dividing the net asset value of the fund by the number of units. However, it

also refer loosely to the NAV per unit as NAV, ignoring the per unit.

To begin with NAV denotes the performance of a particular Mutual Fund Scheme. Mutual Fundsinvest the money collected from the investors in securities markets. In simple words, Net Asset

Value is the market value of the securities held by the scheme. Since market value of securities

changes every day, NAV of a scheme also varies on day-to-day basis. Mutual Funds are required

to disclose NAV on a regular basis - daily or weekly - depending on the type of scheme.

The NAV appreciates when the market value of the securities held by it go up. This indicates that

the fund is performing well. It should keep in mind that the attractiveness of the scheme is not

necessarily determined by how close the current NAV is to the Face Value at the time of Issue.

Calculation of NAV

The most important part of the calculation is the valuation of the assets owned by the fund. Once

it is calculated, the NAV is simply the net value of assets divided by the number of units

outstanding. The detailed methodology for the calculation of the assets value is given below.

NAV = Market Value of Security of a Scheme

Total Number of Unit of the Scheme

Market Value of Security =

[Total Unit Cap. + Reserves + income (net of expenses & provisions) + (-) Appreciation/(Depreciation) in investment]



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For example, if the market value of securities of a mutual fund scheme is Rs 200 lacs and the

mutual fund has issued 10 lacs units of Rs. 10 each to the investors, then the NAV per unit of the

fund is :

Rs. 200 Lacs = Rs. 20

10 Lacs

Banks v/s Mutual Funds

Characteristics Banks Mutual Funds

Returns Low Better

Administrative Expenses High Low

Risk Low Moderate

Investment options Less More

Network High penetration Low but improving

Liquidity At a cost Better

Quality of assets Not Transparent Transparent

Interest CalculationMinimum balance between 10th

and 30th of every monthEvery day

Guarantee Maximum Rs. 1 Lakhs on deposits None



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HOW TO INVEST IN MUTUAL FUNDSHOW TO INVEST IN MUTUAL FUNDS

Key elements

Fund Sponsor

The sponsor Company establishes the mutual fund in the from f a trust and registers it with

SEBI. The board of trustee holds the fund in trust for unit holders and ensures compliance

with SEBI regulations, trust deed guidelines and the terms of the assets management

agreement by the AMC.

As an investor one should check the sponsors track record. Scrutiny of the fund sponsors

track record may forewarn you against jolts like the CRB scandal. Apart from a consistent

track record, sponsor should have requisite experience and background in managing mutual

funds.

Fund Manager

The fund manager is an employee of the asset management company who formulates the

investment strategy and invests the funds. As an investor in the fund one should-Understand

the investment philosophy of the fund manager -Check the returns he has generated on fund

previously managed by him and find out whether the fund manger has delivered on the

investment objectives of the funds he has managed in the past.

Type of Schemes



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Mutual funds can offer different investment schemes. These schemes can be classified as:

1. Growth Funds Investment objective:

Capital appreciation of equity shares Investment Avenue: Equity shares of companies

with high growth Potential.

2. Income Funds Investment Objective:

Providing safety of investments and regular income Investment Avenue: Bonds,

debentures and other debt related instruments as well as equity shares of companies with

high dividend payouts. There are two (2) aspects of income funds viz. low investment

risk with constant income and high investment risk generating high income.

3. Balanced Funds Investment Objective:

Modest risk of investment and reasonable rate of return Investment Avenue: Judicious

mix of equity shares, preference shares as well as bonds, debentures and other debt

related instruments.

4. Money Market Mutual Funds(MMMFs) Investment objective:

To take advantage of the volatility in interest rates in the money market Investment

Avenue: Certificate of deposits (CDs), call money market commercial papers. Investors

who had earlier stayed away from the money market participate indirectly through

MMMFs.

5. Specialized Funds Investment Objective:

To take advantage of conditions in a particular sector or a specific income producing

security Investment Avenue: Specialized investment in securities f companies in certain

sectors or specific income producing securities.

6. Leveraged Funds Investment Objective :

To increase the value of portfolio and benefit and shareholders by gains exceeding the

cost f borrowed funds Investment Avenue: Speculative and risky investments like short

sales to take advantage of declining market.

7. Index Funds Investment Objective:

To increase the value of the portfolio in line with the benchmark index (for eg. BSE

Sensex, S&P CNX 50) Investment Avenue: Investments only in those shares that form apart of the benchmark index, in exactly the same proportion, so that the value of the index

fund varies in proportion with the benchmark index.

8. Hedge Funds Investment Objective :



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To hedge risk in order to increase the value of the portfolio Investment Avenue: Employ

speculative trading principles buy rising shares and sell shares whose prices are likely

to fall. As an investor you should invest in schemes, which meet your criteria in terms of

you need for regular income, capital appreciation, and safety of principal.

Fee and Charges

AMC charge a fee for managing the funds. As an investor in the fund we must be aware of

the fees and chares of the AMC. Two schemes with more or less similar performances would

generate different returns if one of the two schemes chares high fees.

The public offering price

A sales load represents the money received by the AMC as compensation for distributing

units. It helps the fund to meet its expenses relating to sales and literature, promotion,distribution, advertising and agent/broker commissions. The public offering Price(POP) is

the price at which an investor buys into the fund and is the function of both the NAV and

sales load.

For instance, if the Funds NAV is Rs. 12/- and the applicable sales load is 6% the POP is

NAV/(1 Sales load)=12/(1 - 0.06) = 12.77. If the investor applied for Rs. 10,000 worth of

units he would receive 783.085 units(10,000/12.77). You might be required to pay such load

charges either at the time of buying the units r at the time of selling the units. As an investoryou should be aware of such entry.

Tax implications

Investors need to understand the tax implications before investing in the schemes, as one

scheme may offer more attractive post-tax returns compared to its peers. As Union budgets

regularly offer tax benefits to mutual funds and mutual fund investors, you as an investor

must review the tax implication of mutual fund investments.



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Service levels

Service levels vary across funds. Level of communication also varies across funds. While

some disclose the fund portfolio annually, others disclose it quarterly, and some others

disclose it monthly.

Performance and NAV

Every fund is benchmarked against an index like the BSE Sensex, CNX, SNP 50, and BSE

200 etc. As an investor you must track the funds performance against the benchmark index.

Also it could be useful for the investor to compare its performance with other funds./exit

loads as they could have a material impact on returns.



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ADVANTAGES OF MUTUAL FUNDS

Professional Management.

The major advantage of investing in a mutual fund is that you get a professional money

manager to manage your investments for a small fee. You can leave the investment

decisions to him and only have to monitor the performance of the fund at regular

intervals.

Diversification.

Considered the essential tool in risk management, mutual funds make it possible for even

small investors to diversify their portfolio. A mutual fund can effectively diversify its

portfolio because of the large corpus. However, a small investor cannot have a well-

diversified portfolio because it calls for large investment. For example, a modest

portfolio of 10 bluechip stocks calls for a few a few thousands.



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Convenient Administration.

Mutual funds offer tailor-made solutions like systematic investment plans and systematic

withdrawal plans to investors, which is very convenient to investors. Investors also do not

have to worry about investment decisions, they do not have to deal with brokerage or

depository, etc. for buying or selling of securities. Mutual funds also offer specialized

schemes like retirement plans, childrens plans, industry specific schemes, etc. to suit

personal preference of investors. These schemes also help small investors with asset

allocation of their corpus. It also saves a lot of paper work.

Costs Effectiveness

A small investor will find that the mutual fund route is a cost-effective method (the AMC

fee is normally 2.5%) and it also saves a lot of transaction cost as mutual funds get

concession from brokerages. Also, the investor gets the service of a financial professional

for a very small fee. If he were to seek a financial advisor's help directly, he will end up

paying significantly more for investment advice. Also, he will need to have a sizeable

corpus to offer for investment management to be eligible for an investment advisers

services.

Liquidity.

You can liquidate your investments within 3 to 5 working days (mutual funds dispatch

redemption cheques speedily and also offer direct credit facility into your bank account

i.e. Electronic Clearing Services).

Transparency.

Mutual funds offer daily NAVs of schemes, which help you to monitor your investments

on a regular basis. They also send quarterly newsletters, which give details of the

portfolio, performance of schemes against various benchmarks, etc. They are also well

regulated and Sebi monitors their actions closely.

Tax benefits.

You do not have to pay any taxes on dividends issued by mutual funds. You also have the

advantage of capital gains taxation. Tax-saving schemes and pension schemes give you

the added advantage of benefits under section 88.

Affordability



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Mutual funds allow you to invest small sums. For instance, if you want to buy a portfolio

of blue chips of modest size, you should at least have a few lakhs of rupees. A mutual

fund gives you the same portfolio for meager investment of Rs.1,000-5,000. A mutual

fund can do that because it collects money from many people and it has a large corpus.

DISADVANTAGES OF MUTUAL FUNDS:

Professional Management

Did you notice how we qualified the advantage of professional management with the word

"theoretically"? Many investors debate over whether or not the so-called professionals are any

better than you or I at picking stocks. Management is by no means infallible, and, even if the fund

loses money, the manager still takes his/her cut. We'll talk about this in detail in a later section.

Costs

Mutual funds don't exist solely to make your life easier--all funds are in it for a profit. The

Mutual fund industry is masterful at burying costs under layers of jargon. These costs are so

complicated that in this tutorial we have devoted an entire section to the subject.

Dilution

It's possible to have too much diversification (this is explained in our article entitled "Are You

Over-Diversified?"). Because funds have small holdings in so many different companies, highreturns from a few investments often don't make much difference on the overall return. Dilution

is also the result of a successful fund getting too big. When money pours into funds that have had

strong success, the manager often has trouble finding a good investment for all the new money.

Taxes

When making decisions about your money, fund managers don't consider your personal tax

situation. For example, when a fund manager sells a security, a capital-gain tax is triggered,

which affects how profitable the individual is from the sale. It might have been moreadvantageous for the individual to defer the capital gains liability.

Equity funds

if selected in the right manner and in the right proportion, have the ability to play an important

role in achieving most long-term objectives of investors in different segments. While the



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selection process becomes much easier if you get advice from professionals, it is equally

important to know certain aspects of equity investing yourself to do justice to your hard earned

money.



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SCOPE OF THE STUDY

All the fingers of a hand are not the same. AMCS differ from each other upon their NAV, source

of investment, annual return, environment, etc. Their returns also differ from each other as per the

above factors. Due to this the financial conditions and ability to get the investment requirement

differ from person to 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 Equity funds. Which is a brief analysis on the equity or growth

mutual funds? As the project report is fully based on secondary data and it can be used to have

the exact figure of investment in Mutual Funds, especially in equity funds.

Also the report can be used for decision making by knowing the opinion of customer, the

management can take decision accordingly. The proper analysis on the equity funds and the past

performance of these funds will help the layman to take decision in mutual fund and maximizing

the percentage of equity funds in his portfolio



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OBJECTIVE OF THE STUDY

Objectives are the ends that states specifically how goal be achieved. Every study must

have an objective for which all the efforts have been done. Without objective no research

can be conducted and no result can be obtained. On the basis of objective all the research

process is followed.

The Objectives of this project are shown below:

1. To get insight knowledge about mutual funds2. To study the mutual funds performance levels in the present market

3. To compare leading mutual funds in the present market.

LIMITATIONS OF THE STUDY

The study is limited only to the analysis of different schemes

The study is based on secondary data available from monthly fact sheets, websites

and other books, as primary data was not accessible.

The study is limited by the detailed study of five mutual funds of different mutual

fund houses.



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COMPANY PROFILE

Established in 1985, the Kotak Mahindra group has been one of India's reputed financial

organizations. In February 2003, Kotak Mahindra Finance Ltd, the group's flagship

company was given the license to carry on banking business by the Reserve Bank of

India (RBI). This approval creates banking history since Kotak Mahindra Finance Ltd. is

the first non-banking finance company in India to convert itself in to a bank as Kotak

Mahindra Bank Ltd. The Bank offers comprehensive business solutions that include

Trade Services, Cash Management Service and Credit facilities, keeping in mind the

needs of the business community. Kotak Mahindra Bank has over 212 branches spread

across 124 locations in the country offering both traditional banking products and

investment advisory services. The Bank has the products, the experience, the

infrastructure and most importantly the commitment to deliver pragmatic, end-to-end

solutions that really work.

Kotak Mahindra is one of India's leading financial institutions, offering complete

financial solutions that encompass every sphere of life. From commercial banking, to

stock broking, to mutual funds, to life insurance, to investment banking, the group caters

to the financial needs of individuals and corporate.

The group has a net worth of around Rs.3,200 crore and employs around 10,800

employees across its various businesses servicing around 2.6 million customer accounts

through a distribution network of branches, franchisees, representative offices and



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satellite offices across 300 cities and towns in India and offices in New York, London,

Dubai, Mauritius and Singapore.

Kotak Mahindra Asset Management Company Limited (KMAMC), a wholly owned

subsidiary of KMBL, is the Asset Manager for Kotak Mahindra Mutual Fund (KMMF).

KMAMC started operations in December 1998 and has over 4 Lac investors in various

schemes. KMMF offers schemes catering to investors with varying risk - return profiles

and was the first fund house in the country to launch a dedicated gilt scheme investing

only in government securities.

PRODUCTS PROVIDED BY KOTAK MUTUAL FUND

Different people have different investment needs. The ability to take risks while investing

in financial products varies accordingly.

SO we present our wide range of Mutual Fund schemes, which span across the risk-

reward spectrum

KOTAK30

KOTAKOPPORCHUNITY

KOTAKLIFESTYLE

KOTAK CONTRA

KOTAK TAX SAVER

KOTAK MIDCAP

KOTAK EQUITY ARBITRAGE FUND

KOTAK SELECT FOCUS FUND

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COMPETITORS OF KOTAK MUTUAL FUND:

Birla Sun life Asset Management Company Ltd.

Birla Sun Life AMC Ltd. is a joint venture between Sun Life Assurance Company of Canada and

the Aditya Birla Group, one of the Indian leading Industrial houses.

Sun Life Assurance Company of Canada is a leading financial services organization, providing a

diversified range of risk management, wealth management and money management products for

individual and corporations worldwide. Sun Life commenced business in Canada in 1871, and

its headquartered in Toronto with major operations in Canada, United States, United Kingdom

and Asia Pacific.

It has a major presence in the growing mutual fund markets through MFS Investment

Management in the US, and through Spectrum United Mutual Funds in Canada. It is also active

in the unit trust business in the U.K., and its near term plans include consideration of mutual fund

offerings in the Philippines

SBI Funds Management Limited

SBI funds Management Ltd. is the investment manager of SBI mutual fund. SBI Mutual fund has

been constituted as a trust, sponsored by State Bank of India. Today the fund has an investor

base of over 2.8 million spread over 23 schemes. With a large network of collecting branches

and investor services centers, SBI Mutual fund constantly endeavors to get closer to its growing

family of investors. SBI is the largest public sector Bank in India with 8,836 branches all over

India.

SBI is the leader in providing loans to trade & industry. It also provides related services, which

generate significant fee-based income. It has also identified project finance and consumer

banking as key areas.



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HDFC Asset Management Company Limited

HDFC Asset Management Company Limited (AMC) was incorporated under the Companies Act

1956, on December 10, 1999 and was approved to act as an Asset Management Company for the

Mutual Fund by SEBI on June 30, 2000. The sponsor HDFC was incorporated in 1977 as first

specialized housing finance institution in India. HDFC provides financial assistance to

individuals, corporate and developers for the purchase and construction of residential housing. It

also provides property-related services, training and consultancy. In the mutual fund venture,

HDFC has tied up with Standard Life, one of the leading Insurance companies in the United

Kingdom, having vast experience in management of funds.

The sponsor HDFC was incorporated in 1977 and as a specialized housing finance institution in

India HDFC has developed a strong and dedicated team of agents that market its fixed deposit

products. These key partners would constitute the backbone of the marketing and distribution

network of Mutual Fund and will remain a central theme of the organizational frame work in

times to come.

HDFC Mutual Fund

HDFC mutual fund was setup on June 30, 2000 with two sponsors namely Housing Development

Finance Corporation Limited and Standard Life Investments Limited.

HSBC Mutual Fund

HSBC Mutual Fund was setup on May 27, 2002 with HSBC Securities and Capital Markets

(India) Private Limited as the sponsor. The Board of Trustees, HSBC Mutual Fund acts as the

Trustee Company of HSBC Mutual Fund.

ING Vysya Mutual Fund

ING Vysya Mutual Fund was setup on February 11, 1999 with the same named Trustee

Company. It is a joint venture of Vysya and ING. The AMC, ING Investment Management

(India) Private Limited was incorporated on April 6, 1998.



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Prudential ICICI Mutual Fund

The Mutual Fund of ICICI is a joint venture with Prudential Plc. Of America, one of the largest

life insurance companies in the US of America. Prudential ICICI Mutual Fund was setup on

October 13, 1993 with two sponsors Prudential Plc. And ICICI Limited. The Trustee Company

formed is prudential ICICI Trust Limited and the AMC is Prudential ICICI Asset Management

Company Limited incorporated on June 22, 1993.

Sahara Mutual Fund

Sahara Mutual Fund was setup on July 18, 1996 with Sahara India Financial Corporation Limited

as the sponsor. Sahara Asset Management Company Private Limited incorporated on August 31,

1995 works as the AMC of Sahara Mutual Fund. The paid up capital of the AMC stands at Rs.

25.8 Crore.

State Bank of India Mutual Fund

State Bank of India Mutual Fund is the first Bank sponsored Mutual Fund to launch offshore

fund, the India Magnum Fund with a corpus of Rs. 225 Cr. Approximately. Today it is the largest

Bank sponsored Mutual Fund in India. They have already launched 35 Schemes out of which 15

have already yielded handsome return to investors. State Bank of India Mutual Fund has more

than Rs. 5,500 Crores as AUM. Now it has an investor base of over 8 Lakhs spread over 18

Schemes.

Unit Trust of India Mutual Fund

UTI Asset Management Private Limited established in January 14, 2003, manges the UTI Mutual

Fund with the support of UTI Trustee Company Private Limited. UTI Asset Management

Company presently manages a corpus of over Rs. 20000 Crore. The sponsors of UTI Mutual

Fund are Bank of Baroda(BOB, Punjab National Bank(PNB), State Bank of India (SBI), and Life

Insurance Corporation of India (LIC). The schemes of UTI Mutual Fund are Liquid Funds,

Income Funds, Assets Management Funds, Index Funds, Equity Funds and Balance funds.



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Reliance Mutual Fund

Reliance Mutual Fund (RMF) was established as trust under Indian Trust Act, 1882. The

sponsor of RMF is Reliance Capital Limited and Reliance Capital Trustee Co. Limited is the

Trustee. It was registered on June 30, 1995 as Reliance Capital Mutual Fund which as changed

on March 11, 2004.

Reliance Mutual Fund was formed for launching of various schemes under which units are issued

to the Public with a view to contribute to the capital market and provide investors the

opportunities to market investments in diversified securities.

Standard Chartered Mutual Fund

Standard Chartered Mutual Fund was setup on March 13, 2000 sponsored by Standard Chartered

Bank. The Trustee is Standard Chartered Trustee Company Pvt. Ltd. Standard Chartered Asset

Management Company Pvt. Ltd. is the AMC which was incorporated with SEBI on December

20, 1999.

Franklin Templeton India Mutual Fund

The group, Franklin Templeton Investment is California(USA) based company with a global

AUM of US$ 409.2 bn.(as of April 30, 2005). It is one of the largest financial services groups in

the World. Investors can buy or sell the Mutual Fund through their financial advisor or through

mail or through their website. They have Open end Diversified Equity schemes, Open end Sector

Equity Schemes, Open end Hybrid schem3es, Open end Tax Saving Schemes, Open end Income

and Liquid Schemes, Closed end Income schemes and Open end Fund of Funds schemes to offer.

Escorts Mutual Fund

Escorts Mutual Fund was setup on April 15, 1996 with Escorts Finance Limited as its sponsor.

The Trustee Company is Escorts Investment Trust Limited. Its AMC was incorporated on

December 1, 1995 with the name Escorts Asset Management Limited.

Alliance Capital Mutual Fund



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Alliance Mutual Fund was setup on December 30, 1994 with Alliance Capital Management

Corporation of Delaware (USA) as sponsor. The Trustee is ACAM Trustee Company Pvt.

Ltd.and AMC, the Alliance Capital Asset Management India (Pvt) Limited with the corporate

office in Mumbai.



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REVIEW OF LITERATURE



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LITERATURE REVIEW

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

following books, journals and websites about which I have given detail below.

BOOKs

INVESTMENT by BODIE, MARCUS,PITABAS MOHANTY

NSIM BOOK BY NSE INDIA

JOURNALS & REPORTS

INVESTORS INDIAFindings: All information about investment instruments

AMFI(BASIC MODULE)Findings: complete knowledge about mutual funds

WEBSITES

http://www.kotakmutual.com/kmw/product/mutual-fund-products-schemes.htm

Findings: complete knowledge about kotak mutual funds products

http://www.mfea.com/InvestingBasics/LearningTopics/GetStarted/TypesFunds.asp

Findings: complete knowledge about mutual funds types and detail

http://www.mfea.com/InvestingBasics/LearningTopics/UnderstandRisk/AssessingRisk.as

p

Findings: complete knowledge about mutual funds risk and return

http://www.kotakmutual.com/kmw/product/mutual-fund-products-schemes.htmhttp://www.mfea.com/InvestingBasics/LearningTopics/GetStarted/TypesFunds.asphttp://www.mfea.com/InvestingBasics/LearningTopics/UnderstandRisk/AssessingRisk.asphttp://www.mfea.com/InvestingBasics/LearningTopics/UnderstandRisk/AssessingRisk.asphttp://www.kotakmutual.com/kmw/product/mutual-fund-products-schemes.htmhttp://www.mfea.com/InvestingBasics/LearningTopics/GetStarted/TypesFunds.asphttp://www.mfea.com/InvestingBasics/LearningTopics/UnderstandRisk/AssessingRisk.asphttp://www.mfea.com/InvestingBasics/LearningTopics/UnderstandRisk/AssessingRisk.asp


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RESEARCH Methodology &

DESIGN



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In this project work all the data used is the secondary data.

Data is collected from the various sources.

1. Fund sheet of the mutual houses.

2. Websites of mutual fund

www.kotakmutual.com

3. Websites-

http://www.mfea.com/InvestingBasics/LearningTopics/GetStarted/

TypesFunds.asp

http://www.mfea.com/InvestingBasics/LearningTopics/Understand

Risk/AssessingRisk.asp

4. Books

INVESTMENT by BODIE, MARCUS,PITABAS MOHANTY.

Graphs are use for compare the NAV, and annual return of the mutual

funds

http://www.kotakmutual.com/http://www.mfea.com/InvestingBasics/LearningTopics/GetStarted/TypesFunds.asphttp://www.mfea.com/InvestingBasics/LearningTopics/GetStarted/TypesFunds.asphttp://www.mfea.com/InvestingBasics/LearningTopics/UnderstandRisk/AssessingRisk.asphttp://www.mfea.com/InvestingBasics/LearningTopics/UnderstandRisk/AssessingRisk.asphttp://www.kotakmutual.com/http://www.mfea.com/InvestingBasics/LearningTopics/GetStarted/TypesFunds.asphttp://www.mfea.com/InvestingBasics/LearningTopics/GetStarted/TypesFunds.asphttp://www.mfea.com/InvestingBasics/LearningTopics/UnderstandRisk/AssessingRisk.asphttp://www.mfea.com/InvestingBasics/LearningTopics/UnderstandRisk/AssessingRisk.asp


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History of

Mutual FundHISTORY OF MUTUAL FUND

The origin of mutual fund industry in India is with the introduction of the concept of mutual fund

by UTI in the year 1963. This was a joint initiative of the Government of India and RBI. It held

monopoly for nearly 30 years. Since 1987, non-UTI mutual funds entered the scenario. These

consisted of LIC, GIC and public-sector bank backed Indian mutual funds. SBI Mutual fund was

the first of this kind. 1993 saw the entry of private sector players on the Indian Mutual Funds

scene. Mutual fund regulations were revised in 1996 to accommodate changing market needs.

Though the growth was slow, but it accelerated from the year 1987 when non-UTI players

entered the industry.

In the past decade, Indian mutual fund industry had seen dramatic improvements, both quality

wise as well as quantity wise. The main reason of its poor growth is that the mutual fund

industry in India is new in the country. Large sections of Indian investors are yet to be

intellectuate with the concept. Hence, it is the prime responsibility of all mutual fund companies,

to market the product correctly abreast of selling.

The mutual fund industry can be broadly put into four phases according to the development of the

sector. Each phase is briefly described as under:

First Phase-1964-87 (Monopoly of UTI)

Unit Trust of India was established on 1963 by an Act of Parliament. It was set up by theReserve Bank of India and functioned under the Regulatory and administrative control of the

Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development

bank of India(IDBI) took over the regulatory and administrative control in place of RBI. The first

scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs. 6,700 crore of

assets under management.



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Second Phase-1987-1993 (Entry of Public Sector Fund)

1987 marked the entry of non-UTI, public sector mutual funds set up by public sector banks and

Life Insurance Corporation of India(LIC) and General Insurance Corporation of India(GIC). SBI

Mutual Fund was the first non-UTI Mutual Fund established in June 1987 followed by Canbank

Mutual Fund (December 1987), Punjab National Bank Mutual Fund (August 1989), Indian Bank

Mutual Fund (November 1989), Bank of India (June 1990), Bank of Baroda Mutual

Fund(October 1992). LIC established its Mutual Fund in June 1989 while GIC had set up its

Mutual Fund in December 1990.

At the end of 1993, the mutual fund industry had assets under management of Rs. 47,004 crores.

Third Phase : 1993 1996(Entry of Private Sector Funds)

With the entry of private sector funds in 1993, a new era started in the Indian Mutual fund

industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in

which the first Mutual Funds Regulations came into being, under which all mutual funds, except

UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with

Franklin Templeton) was the first private sector mutual fund registered in July 1993.

The number of mutual fund houses went on increasing, with many foreign mutual funds setting

up funds in India and also the industry has witnessed several mergers and acquisitions. As at the

end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805 crores. The

Unit Trust of India with Rs.44,541 crores of assets under management was way ahead of other

mutual funds.

Fourth Phase since February 2003

This phase had bitter experience for UTI. It was bifurcated into two separate entities. One is the

Specified Undertaking of the Unit Trust of India with AUM of Rs.29,835 crores (as on January

2003). The Specified Undertaking of Unit Trust of India, functioning under an administrator and

under the rules framed by Government of India and does not come under the purview of the

Mutual Fund Regulations.



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The second is the Unit Trust of India Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It

is registered with SEBI and functions under the Mutual Fund. The mutual fund industry has

entered its current phase of consolidation and growth. As at the end of September, 2004, there

were 29 funds, which manage assets of Rs.153108 crores under 421schemes.

Growth of Mutual Funds during four phases



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COMPARISON OF FOUR MAJOR MUTUAL FUNDS

FRANKLIN TEMPLETON INDIA PRIMA PLUS

Mutual Fund Franklin Templeton Mutual Fund

Scheme Name Franklin India Prima Plus

Scheme Type Open Ended

Scheme Category Growth

Launch Date 29-Sep-1994

KOTAK 30 FUND

Mutual Fund Kotak Mutual Fund

Scheme Name Kotak 30



Launch Date 29-Dec-1998

Investment Objective

It is an open-ended equity growth scheme with an objectiveto generate capital appreciation from a portfolio ofpredominantly equity related securities. The portfolio willgenerally comprise of equity and equity related instrumentsof around thirty companies which may go up to thirty ninecompanies. This scheme was launched on December29;1998.Its benchmark index is S&P CNX Nifty. The funds totalcorpus as on May31, 2009 was Rs.897.26 Crores.Analyzing the funds portfolio as on May31, 2009, we gather

that majority of its corpus is allocated in the Banking sector(14.12%) followed by Construction (10.98%), Power (8.62%),Petroleum Products (6.3%).



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Fund Performance as on May31, 2009

Period % change in NAV % change in Index

Last 6 months 42.47% 60.80%1 year -12.42% -7.99%3 years 9.46% 11.53%5 years 27.31% 24.13%

Looking at the funds performance in the past six months wefind that while the fund grew by 42.47% the benchmarkindex recorded a growth 60.80%.During the past one yearthe funds growth declined by 12.42% while the benchmarkindex declined by 7.99%.Over the past three years, while thefund grew at 9.46% the benchmark index grew by11.53%.Thus, over the past three years the fund alwaysrecorded a better performance than the benchmark index.However, over the last five years, while the fund grew at27.31% the benchmark index grew by 24.13%.Sinceinception this fund has recorded a growth of 21.55%

whereas its benchmark index grew at 16.92%.This fund has a Beta of 0.90 indicating that if the growth rateof the market index changes by 1% the fund would witness achange in its growth by 0.9%.A Beta of less than one impliesthat the fund is less volatile than the market. It has aStandard Deviation of 32.41% implying that its returns varyaround the mean return value by 32.41%.Its Sharpe ratio is0.32 which gives us the extra returns generated per unit ofrisk taken. Its Portfolio Turnover rate is 202.18%.A higher

portfolio turnover ratio implies a higher expense ratio.56 Comparison of Top Five Mutual Fund Houses With Kotak MutualFund



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TATA GROWTH FUND

Mutual Fund Tata Mutual Fund

Scheme Name TATA GROWTH FUND



RELIANCE GROWTH FUND

Mutual Fund Reliance Mutual Fund

Scheme Name RELIANCE GROWTH FUND



Fund/Period 6month

s

1 year 3years

5 years SinceInception

BSL Frontline

Equity

- (-)0.88% 18.47% 29.39% 31.29

%

HDFC Equity 66.88% 0.80% 12.54% 29.44% 21.71%

ICICI PrudentialDynamic

48.18% (-)10.08%

9.38% 31.81% 34.37%

Kotak 30 42.47% (-)12.42%

9.46% 27.31% 21.55%

UTI Equity - (-)9.19% 8.16% 22.40% 10.47%

45


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Launch Date 25-Sep-1995

Comparison large cap top performing Mutual funds

1- This graph represents the scheme assets of the four major companies. The valuesmentioned in the graph are in crores

Kotak Franklin Tata Reliance

AMC Assets (Rs. Crore) 21987 20633 19438 88387



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0

20000

40000

60000

80000

100000

AMC Assets (Rs. Crore)


2- This graph represents the latest NAVs values of all the four major companies inwhich reliance capital is the one with highest NAV and Kotak is the one with the lowestNAV.


Latest NAV (Rs./Unit) 105 130 23 258



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Kotak, 105

Fra

nce, 258

3- This graph stands a symbolic representation of the annual returns of the

four major companies to their customers for the last 3 months. This

value is of 14may 2009.


Annual Return % 24.4% 19.9% 21.1% 24.5%



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24.4%

19.9

21.1

24.5%

Kotak

Franklin

Tata

Reliance

Annual Retur

4- This graph stands a symbolic representation of the annual returns of the four major

companies to their customers for the last 5 years. The value is of 14may 2009.


AnnualReturn

1 Year 2 Year 3 Year 4 Year 5 Year

Kotak 82.3% 9.3% 31.6% -34.6% 170.0%

Franklin 21.9% -22.0% -9.5% 10.6% 163.3%

Tata 2.8% -40.1% -30.0% -24.0% 81.7%

Reliance 22.8% -31.0% -33.0% -7.0% 98.0%

49


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-50.0%

0.0%

50.0%

100.0%

150.0%

200.0%

Annual RetuAs on 14th May'0

Kotak 82.3% 9.3% 31.6% -34.6% 170.0

Franklin 21.9% -22.0% -9.5% 10.6% 163.3

- - -

22.8% -31.0% -33.0% -7.0% 98.0%

1 Year 2 Year 3 Year 4 Year 5 Year

Findings

1. I found that Mutual fund is the best way to investment money in the equity

And in the share market. The fund managers will take care of our money

and give the best return according to the market conditions.



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2. With the analysis of performance of mutual fund I find that large cap

mutual fund gives the more returns.

3. by comparing the four major large cap mutual fund I find the best return

giving mutual fund in the last five years analysis.

4. kotak 30 mutual fund is the best fund to invest money in long term as well

as in the frankling tempelton mutual fund



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CONCLUSION

CONCLUSION

After going through a two months summer training , I have come to know about

different aspects of mutual funds and mutual funds industry. Mutual fund has

become one of the important avenues for investing. It is quite likely that a more

efficient portfolio can be constructed directly from funds. Thus, the two-step

process of choosing an asset allocation based on the information about benchmark

indexes and then choosing funds in each category may be one of the best

realistically attainable approaches.



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We have studied the performance of the various mutual funds of the large capital.

If we talk about the performance above data graph tells the performance over the

5 years and 1 year. And NAV. Where an investor can get a great opportunity for

them.

By comparing the various mutual fund about the return of Kotak mutual fund

gives the highest return over the all 4 compared mutual fund. Return over the 5

years and also in the 1 year return. All the 4 funds are of the large cap.

1



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BIBLIOGRAPHY

BIBLIOGRAPHY

BOOK

INVESTMENT by BODIE, MARCUS,PITABAS MOHANTY

NSIM BOOK BY NSE INDIA



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JOURNALS & REPORTS

INVESTORS INDIAFindings: All information about investment instruments

AMFI(BASIC MODULE)

WEBSITES

http://www.kotakmutual.com/kmw/product/mutual-fund-products-schemes.htm

http://www.mfea.com/InvestingBasics/LearningTopics/GetStarted/TypesFunds.asp

http://www.mfea.com/InvestingBasics/LearningTopics/UnderstandRisk/AssessingRisk.as

p

APPENDIX

http://www.kotakmutual.com/kmw/product/mutual-fund-products-schemes.htmhttp://www.mfea.com/InvestingBasics/LearningTopics/GetStarted/TypesFunds.asphttp://www.mfea.com/InvestingBasics/LearningTopics/UnderstandRisk/AssessingRisk.asphttp://www.mfea.com/InvestingBasics/LearningTopics/UnderstandRisk/AssessingRisk.asphttp://www.kotakmutual.com/kmw/product/mutual-fund-products-schemes.htmhttp://www.mfea.com/InvestingBasics/LearningTopics/GetStarted/TypesFunds.asphttp://www.mfea.com/InvestingBasics/LearningTopics/UnderstandRisk/AssessingRisk.asphttp://www.mfea.com/InvestingBasics/LearningTopics/UnderstandRisk/AssessingRisk.asp


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BOARD OF DIRECTORS: uday kotak, r. c. khanna, sukant kelkar, c.jayaram, s. a. narayan, bipin r. shah.

Directors ReportTo the Members of Kotak Mahindra Asset Management CompanyLimited

The Directors present their Sixteenth Annual Report together with the

audited accounts of your Company for the year ended March 31, 2010.

Financial Results The financial position of the Company at the end of the currentfinancial year is given below: (Rs. In Lakhs)

2009-2010 2008-2009Gross income 17,548.26 8,528.80



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Profit before Depreciation and Tax 10,108.371,788.15

Depreciation 203.18200.11

Profit before Tax 9,905.19 1,588.04

Profit after Tax 6,551.45 1,033.23Balance of Profit from previous years 1,381.96368.42

Amount available for appropriation 7,933.41 1,401.65AppropriationsDividend on Preference Shares 72.25

16.83Dividend on Equity Shares 3960.00 Corporate Dividend Tax thereon 674.29 2.86Transfer to General Reserves 656.00 Surplus carried forward to the

Balance Sheet 2570.87 1,381.96

The gross income of your Company has increased by 106% along withan increase of 10% in the expenses of the Company. The increase inthe revenue as compared to the last year has been on account ofbetter realizations along with a substantial increase in the average

assets under management. Resultantly the profits of the Companyhave increased by 530% to Rs. 65.51 crores.

DividendYour Directors recommend dividend on the preference shares at thecoupon rate i.e. 8.5% the financial year. Your Directors alsorecommend a final dividend of Rs. 14 per equity share which together



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with interim dividend of Rs. 6 paid per equity share would make totaldividend of Rs. 20 per equity share for the financial year.

CapitalThe Authorized Share Capital of the Company is Rs. 35 crores, divided

into 2,50,00,000 Equity Shares of Rs. 10 each and 1,00,00,000Preference Shares of Rs. 10 each. The issued and paid up capital of theCompany is Rs. 28.30 crores as per the break up given below:-Equity share capital: R s. 19,80,00,000Preference share capital: R s. 8,50,00,000

Total: Rs 28,30,00,000

Documents

financil ststement