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DECLARATION
I hereby declare that this Project Report titled
PERFORMANCE OF MUTUAL FUNDS submitted by me to the
Department of Business Management, Osmania University,
Hyderabad is a bonafide work undertaken by me and it is not
submitted to any other University or Institution for the award of any
degree diploma/certificate or published any time before.
PLACE:DATE:
(M. SATYA NARAYANA)
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CERTIFICATE
This is to certify that the Project Report titled PERFORMANCE OF MUTUAL
FUNDS submitted in partial fulfillment for the award of Master of Business
Administration was carried out by M. SATYA NARAYANA under my guidance. This has
not been submitted to any other University or Institution for the award of any degree /
diploma / certificate.
PLACE:DATE:
Signature of the Supervisor
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ACKNOWLEDGEMENTI take this opportunity to thank Mr. M. KARUNAKAR Principal of M.B.A Dept .
STAN FORD PG COLLEGE, for his encouragement in doing the project work.
I would like to thank MrM. KARUNAKARHead of The Department of
M.B.A Dept. for his
I would like to thank Mrs. M. KARUNAKAR Faculty of Finance for his
guidance and suggestion and his kind help and motivation in completing the project.
I take the opportunity to express my deep and sincere gratitude to the
management ofHDFC Mutual Fund for their gesture of allowing me to undertake this
project and its various employees who lent their hand towards the completion this study.
(M. SATYA NARAYANA)
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CONTENTS
CHAPTER- 1
INTRODUCTION
CHAPTER-2
INDUSTRY PROFILE
COMPANY PROFILE
CHAPTER-3
OBJECTIVES AND METHODOLOGY
a. Objectives
b. Methodology
c. Significance of the study
d. Presentation of the study
e. Limitations
CHAPTER-4
DATA ANALYSIS & INTREPRETATION
CHAPTER-5
FINDINGS AND SUGGESTIONS
BIBLIOGRAPHY
LIST OF TABLES
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TABLE NO. TABLE TITLE PAGE NO.
9 Returns, mean, variance, standard deviation of 52
TABLE NO. TABLE TITLE PAGE NO.1 Returns, mean, variance, standard deviation of
HDFC TAX SAVER DIVIDEND PLAN for the
period of July 07
36
2 Returns, mean, variance, standard deviation of
HDFC TAX SAVER DIVIDEND PLAN for the
period of August 07
38
3 Returns, mean, variance, standard deviation of
HDFC TAX SAVER DIVIDEND PLAN for theperiod of September 07
40
4 Returns, mean, variance, standard deviation of
HDFC TAX SAVER DIVIDEND PLAN for the
period of -October 07
42
5 Returns, mean, variance, standard deviation of
HDFC TAX SAVER DIVIDEND PLAN for the period
of -November 07
44
6 Returns, mean, variance, standard deviation of
HDFC TAX SAVER DIVIDEND PLAN for the period
of -December 07
46
7 Returns, mean, variance, standard deviation of
HDFC Monthly income plan Long term plan Growth
option for the period July-07
48
8 Returns, mean, variance, standard deviation of
HDFC Monthly income plan Long term plan Growth
option for the period August-07
50
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HDFC Monthly income plan Long term plan
Growth option for the period September-0710 Returns, mean, variance, standard deviation of
HDFC Monthly income plan Long term plan
Growth option for the period October-07
54
11 Returns, mean, variance, standard deviation of
HDFC Monthly income plan Long term plan
Growth option for the period November-07
56
12 Returns, mean, variance, standard deviation of
HDFC Monthly income plan Long term plan
Growth option for the period December-07
58
13 Returns, mean, variance, standard deviation of
HDFC Floating Rate income fund long term plan-Dividend for the period July-07
60
14 Returns, mean, variance, standard deviation of
HDFC Floating Rate income fund long term plan-
Dividend for the period August-07
62
15 Returns, mean, variance, standard deviation of
HDFC Floating Rate income fund long term plan-
Dividend for the period September-07
64
16 Returns, mean, variance, standard deviation of
HDFC Floating Rate income fund long term plan-
Dividend for the period October-07
66
TABLE NO. TABLE TITLE PAGE NO.17 Returns, mean, variance, standard deviation of
HDFC Floating Rate income fund long term plan-Dividend
for the period November-07
68
18 Returns, mean, variance, standard deviation of
HDFC Floating Rate income fund long term plan-Dividend
for the period December-07
70
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19 Comparisons of various HDFC Mutual Funds For the month
of july-07
72
20 Comparisons of various HDFC Mutual Funds For the month
of August-07
73
21 Comparisons of various HDFC Mutual Funds For the month
of September-07
74
22
Comparisons of various HDFC Mutual Funds For the month
of October-07
75
23
Comparisons of various HDFC Mutual Funds For the month
of November-07
76
24 Comparisons of various HDFC Mutual Funds For the month
of December-07
77
LIST OF GRAPHS
GRAPH GRAPH TITLE PAGE NO1 Graphical presentation for HDFC Tax Saver fund For the
month of July-07
37
2 Graphical presentation for HDFC Tax Saver fund For themonth of August-07
39
3 Graphical presentation for HDFC Tax Saver fund For the
month of September-07
41
4 Graphical presentation for HDFC Tax Saver fund For the
month of October-07
43
5 Graphical presentation for HDFC Tax Saver fund For the 45
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month of November-076 Graphical presentation for HDFC Tax Saver fund For the
month of December-07
47
7 Graphical presentation for HDFC Monthly Income plan
Long Term Plan Growth option For the MonthOf July-07
49
8 Graphical presentation for HDFC Monthly Income plan
Long Term Plan Growth option For the Month
Of August-07
51
9 Graphical presentation for HDFC Monthly Income plan
Long Term Plan Growth option For the Month
Of September-07
53
10 Graphical presentation for HDFC Monthly Income plan
Long Term Plan Growth option For the Month
Of October-07
55
GRAPH GRAPH TITLE PAGE NO11 Graphical presentation for HDFC Monthly Income plan
Long Term Plan Growth option For the MonthOf November-07
57
12 Graphical presentation for HDFC Monthly Income planLong Term Plan Growth option For the MonthOf December-07
59
13 Graphical presentation for HDFC Floating Rate IncomeFund Long term Plan Dividend For the month Of July-07 61
14 Graphical presentation for HDFC Floating Rate IncomeFund Long term Plan Dividend For the month OfAugust-07
63
15 Graphical presentation for HDFC Floating Rate Income 65
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Fund Long term Plan Dividend For the month OfSeptember-07
16 Graphical presentation for HDFC Floating Rate IncomeFund Long term Plan Dividend For the month Of
October-07
67
17 Graphical presentation for HDFC Floating Rate Income
Fund Long term Plan Dividend For the month Of
November-07
69
GRAPH GRAPH TITLE PAGE NO18 Graphical Representation for HDFC Floating Rate Income
Fund Long term Plan Dividend For the month Of
December-07
71
19 Graphical Representation of various schemes for the
month of July-07
72
20
Graphical Representation of various Schemes for the
month of August-07
73
21 Graphical Representation of various schemes for themonth of September-07
74
22 Graphical Representation of various schemes for the
month of October-07
75
23 Graphical Representation of various schemes for the 76
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month of November-07
24 Graphical Representation of various schemes for the
month of December-07
77
INTRODUCTION
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INTRODUCTION TO MUTUAL FUND
Mutual fund is a trust that pools money from a group of investors (sharing common
financial goals) and invest the money thus collected into asset classes that match the stated
investment objectives of the scheme. Since the stated investment objective of a mutual fund
scheme generally forms the basis for an investor's decision to contribute money to the pool,
a mutual fund can not deviate from its stated objectives at any point of time.
Every Mutual Fund is managed by a fund manager, who using his investment management
skills and necessary research works ensures much better return than what an investor can
manage on his own. The capital appreciation and other incomes earned from these
investments are passed on to the investors (also known as unit holders) in proportion of the
number of units they own.
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When an investor subscribes for the units of a mutual fund, he becomes part owner of the
assets of the fund in the same proportion as his contribution amount put up with the corpus
(the total amount of the fund). Mutual Fund investor is also known as a mutual fund
shareholder or a unit holder.
Any change in the value of the investments made into capital market instruments (such as
shares, debentures etc) is reflected in the Net Asset Value (NAV) of the scheme. NAV is
defined as the market value of the Mutual Fund scheme's assets net of its liabilities. NAV
of a scheme is calculated by dividing the market value of scheme's assets by the total
number of units issued to the investors.
ADVANTAGES OF MUTUAL FUND
1. Portfolio Diversification: Mutual Funds invest in a well-diversified portfolio of
securities which enables investor to hold a diversified investment portfolio (whether the
amount of investment is big or small).
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2. Professional Management: Fund manager undergoes through various research works
and has better investment management skills which ensure higher returns to the investor
than what he can manage on his own.
3. Less Risk: Investors acquire a diversified portfolio of securities even with a small
investment in a Mutual Fund. The risk in a diversified portfolio is lesser than investing in
merely 2 or 3 securities.
4. Low Transaction Costs: Due to the economies of scale (benefits of larger volumes),
mutual funds pay lesser transaction costs. These benefits are passed on to the investors.
5. Liquidity: An investor may not be able to sell some of the shares held by him veryeasily and quickly, whereas units of a mutual fund are far more liquid.
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6. Choice of Schemes: Mutual funds provide investors with various schemes with different
investment objectives. Investors have the option of investing in a scheme having a
correlation between its investment objectives and their own financial goals. These schemes
further have different plans/options
7. Transparency: Funds provide investors with updated information pertaining to the
markets and the schemes. All material facts are disclosed to investors as required by the
regulator.
8. Flexibility: Investors also benefit from the convenience and flexibility offered by
Mutual Funds. Investors can switch their holdings from a debt scheme to an equity scheme
and vice-versa. Option of systematic (at regular intervals) investment and withdrawal is
also offered to the investors in most open-end schemes.
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9. Safety: Mutual Fund industry is part of a well-regulated investment environment where
the interests of the investors are protected by the regulator. All funds are registered with
SEBI and complete transparency is forced.
DISADVANTAGES OF MUTUAL FUND
1.Costs Control Not in the Hands of an Investor: Investor has to pay investment
management fees and fund distribution costs as a percentage of the value of his investments
(as long as he holds the units), irrespective of the performance of the fund.
3
2. No Customized Portfolios: The portfolio of securities in which a fund invests is a
decision taken by the fund manager. Investors have no right to interfere in the decision
making process of a fund manager, which some investors find as a constraint in achieving
their financial objectives.
3. Difficulty in Selecting a Suitable Fund Scheme: Many investors find it difficult to
select one option from the plethora of funds/schemes/plans available. For this, they may
have to take advice from financial planners in order to invest in the right fund to achieve
their objectives.
TYPES OF MUTUAL FUNDS
General Classification of Mutual Funds
Open-end Funds / Closed-end Funds
Open-end Funds:
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Funds that can sell and purchase units at any point in time are classified as Open-end
Funds. The fund size (corpus) of an open-end fund is variable (keeps changing) because of
continuous selling (to investors) and repurchases (from the investors) by the fund. An
open-end fund is not required to keep selling new units to the investors at all times but is
required to always repurchase, when an investor wants to sell his units. The NAV of an
open-end fund is calculated every day.
Closed-end Funds:
Funds that can sell a fixed number of units only during the New Fund Offer (NFO) period
are known as Closed-end Funds. The corpus of aClosed-end Fund remains unchanged at
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all times. After the closure of the offer, buying and redemption of units by the investors
directly from the Funds is not allowed. However, to protect the interests of the investors,
SEBI provides investors with two avenues to liquidate their positions:
1. Closed-end Funds are listed on the stock exchanges where investors can buy/sell
units from/to each other. The trading is generally done at a discount to the NAV of
the scheme. The NAV of a closed-end fund is computed on a weekly basis (updated
every Thursday).
2. Closed-end Funds may also offer "buy-back of units" to the unit holders. In this
case, the corpus of the Fund and its outstanding units do get changed.
Load Funds/no-load funds
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Load Funds:
Mutual Funds incur various expenses on marketing, distribution, advertising, portfolio
churning, fund managers salary etc. Many funds recover these expenses from the investors
in the form of load. These funds are known as Load Funds. A load fund may impose
following types of loads on the investors:
Entry Load Also known as Front-end load, it refers to the load charged to an
investor at the time of his entry into a scheme. Entry load is deducted from the
investors contribution amount to the fund.
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Exit Load Also known as Back-end load, these charges are imposed on an
investor when he redeems his units (exits from the scheme). Exit load is deducted
from the redemption proceeds to an outgoing investor.
Deferred Load Deferred load is charged to the scheme over a period of time. Contingent Deferred Sales Charge (CDSS) In some schemes, the percentage of
exit load reduces as the investor stays longer with the fund. This type of load is
known as Contingent Deferred Sales Charge.
No-Load Fund:
All those funds that do not charge any of the above mentioned loads are known as No-load
Funds.
Tax-exempt Funds/ Non-Tax-exempt Funds
Tax-exempt Funds:
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Funds that invest in securities free from tax are known as Tax-exempt Funds. All open-end
equity oriented funds are exempt from distribution tax (tax for distributing income to
investors). Long term capital gains and dividend income in the hands of investors are tax-
free.
Non-Tax-exempt Funds:
Funds that invest in taxable securities are known as Non-Tax-exempt Funds. In India, all
funds, except open-end equity oriented funds are liable to pay tax on distribution income.
Profits arising out of sale of units by an investor within 12 months of purchase are
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categorized as short-term capital gains, which are taxable. Sale of units of an equity
oriented fund is subject to Securities Transaction Tax (STT). STT is deducted from the
redemption proceeds to an investor
1. Equity Funds:
Equity funds are considered to be the more risky funds as compared to other fund types,
but they also provide higher returns than other funds. It is advisable that an investor
looking to invest in an equity fund should invest for long term i.e. for 3 years or more.
There are different types of equity funds each falling into different risk bracket. In the order
of decreasing risk level, there are following types of equity funds:
(1)Aggressive Growth Funds: In Aggressive Growth Funds, fund managers aspire for
maximum capital appreciation and invest in less researched shares of speculative nature.
Because of these speculative investments Aggressive Growth Funds become more volatile
and thus, are prone to higher risk than other equity funds.
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a. Growth Funds: Growth Funds also invest for capital appreciation (with time
horizon of 3 to 5 years) but they are different from Aggressive Growth Funds in the
sense that they invest in companies that are expected to outperform the market in
the future. Without entirely adopting speculative strategies, Growth Funds invest in
those companies that are expected to post above average earnings in the future.
b. Speciality Funds: Speciality Funds have stated criteria for investments and their
portfolio comprises of only those companies that meet their criteria. Criteria for
some
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speciality funds could be to invest/not to invest in particular regions/companies. Speciality
funds are concentrated and thus, are comparatively riskier than diversified funds. There are
following types of speciality funds:
1. Sector Funds: Equity funds that invest in a particular sector/industry of the market areknown as Sector Funds. The exposure of these funds is limited to a particular sector (say
Information Technology, Auto, Banking, Pharmaceuticals or Fast Moving Consumer
Goods) which is why they are more risky than equity funds that invest in multiple sectors.
2. Foreign Securities Funds: Foreign Securities Equity Funds have the option to invest in
one or more foreign companies. Foreign securities funds achieve international
diversification and hence they are less risky than sector funds. However, foreign securities
funds are exposed to foreign exchange rate risk and country risk.
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3. Mid-Cap or Small-Cap Funds: Funds that invest in companies having lower market
capitalization than large capitalization companies are called Mid-Cap or Small-Cap Funds.
Market capitalization of Mid-Cap companies is less than that of big, blue chip companies
(less than Rs. 2500 crores but more than Rs. 500 crores) and Small-Cap companies have
market capitalization of less than Rs. 500 crores. Market Capitalization of a company can
be calculated by multiplying the market price of the company's share by the total number of
its outstanding shares in the market. The shares of Mid-Cap or Small-Cap Companies are
not as liquid as of Large-Cap Companies which gives rise to volatility in share prices of
these companies and consequently, investment gets risky.
8
4. Diversified Equity Funds: Except for a small portion of investment in liquid money
market, diversified equity funds invest mainly in equities without any concentration on a
particular sector(s). These funds are well diversified and reduce sector-specific or
company-specific risk. However, like all other funds diversified equity funds too are
exposed to equity market risk. One prominent type of diversified equity fund in India is
Equity Linked Savings Schemes (ELSS). As per the mandate, a minimum of 90% of
investments by ELSS should be in equities at all times. ELSS investors are eligible to claim
deduction from taxable income (up to Rs 1 lakh) at the time of filing the income tax return.
ELSS usually has a lock-in period and in case of any redemption by the investor before the
expiry of the lock-in period makes him liable to pay income tax on such income(s) for
which he may have received any tax exemption(s) in the past.
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c. Equity Index Funds: Equity Index Funds have the objective to match the
performance of a specific stock market index. The portfolio of these funds
comprises of the same companies that form the index and is constituted in the same
proportion as the index. Equity index funds that follow broad indices (like S&P
CNX Nifty, Sensex) are
d. Less risky than equity index funds that follow narrow sectoral indices (like
BSEBANKEX or CNX Bank Index etc). Narrow indices are less diversified and
therefore, are more risky.
2.Debt/IncomeFunds:
Funds that invest in medium to long-term debt instruments issued by private companies,
banks, financial institutions, governments and other entities belonging to various sectors
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(like infrastructure companies etc.) are known as Debt / Income Funds. Debt funds are low
risk profile funds that seek to generate fixed current income (and not capital appreciation)to investors. In order to ensure regular income to investors, debt (or income) funds
distribute large fraction of their surplus to investors. Although debt securities are generally
less risky than equities, they are subject to credit risk (risk of default) by the issuer at the
time of interest or principal payment. To minimize the risk of default, debt funds usually
invest in securities from issuers who are rated by credit rating agencies and are considered
to be of "Investment Grade". Debt funds that target high returns are more risky. Based on
different investment objectives, there can be following types of debt funds:
a. Diversified Debt Funds: Debt funds that invest in all securities issued by entities
belonging to all sectors of the market are known as diversified debt funds. The best
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feature of diversified debtfunds is that investments are properly diversified into all
sectors which results in risk reduction. Any loss incurred, on account of default by a
debt issuer, is shared by all investors which further reduces risk for an individual
investor.
b. Focused Debt Funds: Unlike diversified debt funds, focused debt funds are narrow
focus funds that are confined to investments in selective debt securities, issued by
companies of a specific sector or industry or origin. Some examples of focused debt
funds are sector, specialized and offshore debt funds, funds that invest only in Tax
Free Infrastructure or Municipal Bonds. Because of their narrow orientation, focuseddebt
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c. funds are more risky as compared to diversified debt funds. Although not yetavailable in India, these funds are conceivable and may be offered to investors very
soon.
d. Assured Return Funds: Although it is not necessary that a fund will meet its
objectives or provide assured returns to investors, but there can be funds that come
with a lock-in period and offer assurance of annual returns to investors during the
lock-in period. Any shortfall in returns is suffered by the sponsors or the Asset
Management Companies (AMCs). These funds are generally debt funds and provide
investors with a low-risk investment opportunity. However, the security of
investments depends upon the net worth of the guarantor (whose name is specified in
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advance on the offer document). To safeguard the interests of investors, SEBI permits
only those funds to offer assured return schemes whose sponsors have adequate net-
worth to guarantee returns in the future. In the past, UTI had offered assured return
schemes (i.e. Monthly Income Plans of UTI) that assured specified returns to
investors in the future. UTI was not able to fulfill its promises and faced large
shortfalls in returns. Eventually, government had to intervene and took over UTI's
payment obligations on itself. Currently, no AMC in India offers assured return
schemes to investors, though possible.
e. Fixed Term Plan Series: Fixed Term Plan Series usually are closed-end schemeshaving short term maturity period (of less than one year) that offer a series of plans
and issue units to investors at regular intervals. Unlike closed-end funds, fixed term
plans are not listed on the exchanges. Fixed term plan series usually invest in debt /
income schemes and target short-term investors. The objective of fixed term plan
schemes is to
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f. Gratify investors by generating some expected returns in a short period.
g. 1.Open-end | 2.Closed-end 3.GiltFunds
Also known as Government Securities in India, Gilt Funds invest in government
papers (named dated securities) having medium to long term maturity period. Issued
by the Government of India, these investments have little credit risk (risk of default)
and provide safety of principal to the investors. However, like all debt funds, gilt
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funds too are exposed to interest rate risk. Interest rates and prices of debt securities
are inversely related and any change in the interest rates results in a change in the
NAV of debt/gilt funds in an opposite direction.
4. Money Market/Liquid Funds:
Money market / liquid funds invest in short-term (maturing within one year) interest
bearing debt instruments. These securities are highly liquid and provide safety of
investment, thus making money market / liquid funds the safest investment option when
compared with other mutual fund types. However, even money market / liquid funds are
exposed to the interest rate risk. The typical investment options for liquid funds include
Treasury Bills (issued by governments), Commercial papers (issued by companies) and
Certificates of Deposit (issued by banks).
5. Hybrid Funds:
As the name suggests, hybrid funds are those funds whose portfolio includes a blend of
equities, debts and money market securities. Hybrid funds have an equal proportion of12
debt and equity in their portfolio. There are following types of hybrid funds in India:
a. Balanced Funds The portfolio of balanced funds include assets like debt
securities, convertible securities, and equity and preference shares held in a
relatively equal proportion. The objectives of balanced funds are to reward
investors with a regular income, moderate capital appreciation and at the same time
minimizing the risk of capital erosion. Balanced funds are appropriate for
conservative investors having a long term investment horizon.
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b. Growth-and-Income Funds Funds that combine features of growth funds and
income funds are known as Growth-and-Income Funds. These funds invest in
companies having potential for capital appreciation and those known for issuing
high dividends. The level of risks involved in these funds is lower than growth
funds and higher than income funds.
6. Commodity Funds:
Those funds that focus on investing in different commodities (like metals, food grains,
crude oil etc.) or commodity companies or commodity futures contracts are termed as
Commodity Funds. A commodity fund that invests in a single commodity or a group of
commodities is a specialized commodity fund and a commodity fund that invests in all
available commodities is a diversified commodity fund and bears less risk than a
specialized commodity fund. Precious Metals Fund and Gold Funds (that invest in gold,
gold futures or shares of gold mines) are common examples of commodity funds.
13
7. Real Estate Funds:
Funds that invest directly in real estate or lend to real estate developers or invest in
shares/securitized assets of housing finance companies, are known as Specialized Real
Estate Funds. The objective of these funds may be to generate regular income for investors
or capital appreciation.
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8. Exchange Traded Funds (ETF):
Exchange Traded Funds provide investors with combined benefits of a closed-end and an
open-end mutual fund. Exchange Traded Funds follow stock market indices and are traded
on stock exchanges like a single stock at index linked prices. The biggest advantage offered
by these funds is that they offer diversification, flexibility of holding a single share
(tradable at index linked prices) at the same time. Recently introduced in India, these funds
are quite popular abroad.
9. Fund of Funds: Mutual funds that do not invest in financial or physical assets, but do
invest in other mutual fund schemes offered by different AMCs, are known as Fund ofFunds. Fund of Funds maintain a portfolio comprising of units of other mutual fund
schemes, just like conventional mutual funds maintain a portfolio comprising of
equity/debt/money market instruments or non financial assets. Fund of Funds provide
investors with an added advantage of diversifying into different mutual fund schemes with
even a small amount of investment, which further helps in diversification of risks.
However, the expenses of Fund of Funds are quite high on account of compounding
expenses of investments into different mutual fund schemes.
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LiteratureReview
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HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY
The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the
initiative of the Government of India and Reserve Bank the. The history of mutual funds in India can
be broadly divided into four distinct phases
First Phase 1964-87
Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the
Reserve 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 crores of
assets under management.
Second Phase 1987-1993 (Entry of Public Sector Funds)
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). SBIMutual Fund was the first non- UTI Mutual Fund established in June 1987 followed by Canbank
Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund
(Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). 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.
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Third Phase 1993-2003 (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 Fund 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 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised
Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund)
Regulations 1996.
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
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into
two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under
management of Rs.29,835 crores as at the end of January 2003, representing broadly, the assets of
US 64 scheme, assured return and certain other schemes. 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.
16
The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered
with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile
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UTI which had in March 2000 more than Rs.76,000 crores of assets under management and with the
setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with recent
mergers taking place among different private sector funds, 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 421 schemes.
The graph indicates the growth of assets over the years.
GROWTH IN ASSETS UNDER MANAGEMENT
Erstwhile UTI was bifurcated into UTI Mutual Fund and the Specified Undertaking of the Unit Trust
of India effective from February 2003. The Assets under management of the Specified Undertaking
of the Unit Trust of India has therefore been excluded from the total assets of the industry as a whole
from February 2003 onward
17
INDUSTRY PROFILE
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A Mutual Fund is a trust that pools the savings of a number of investors who share a common
financial goal. 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 to 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 in a diversified, professionally managed basket of securities at a relatively low
cost.
The flow chart below describes broadly the working of a mutual fund:
Mutual Fund Operation Flow Chart
Fig-1
18
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Organizations Of Mutual Funds:
There are many entities involved and the diagram below illustrates the organizational set up of a mutual fund
Organization of a Mutual Fund
Fig-2
ADVANTAGES OF MUTUAL FUNDS:
The advantages of investing in a Mutual Fund are:
Professional Management
Diversification
Convenient and Flexibility
Low Costs and Transparency
Liquidity
Choice of schemes
Tax benefits
Well regulated
19
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Disadvantage Of Mutual Funds:
No Tailor Made Portfolio
Restrictive Gains
Risk
Types of Mutual Funds:
Wide varieties of Mutual Fund Schemes exist to cater to the needs such
as financial position, risk tolerance and return expectations etc. The table below
gives an overview into the existing types of schemes in the Industry
Mutual Fund Schemes:
By Structure
Open-ended Schemes
Closed-ended Schemes
Interval Schemes
By Investment
Growth Schemes
Income Schemes
Balanced Schemes
Money Market Schemes
Other Schemes
Tax saving schemes
Special Schemes1. Index Schemes
2. Sector Special Schemes
20
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COMPANY PROFILE
VISION
To be a dominant player in the Indian mutual fund space, recognized for its high levels of ethical and
professional conduct and a commitment towards enhancing investor interests.
SPONSORS
Housing Development Finance Corporation Limited (HDFC)
HDFC was incorporated in 1977 as the first specialised mortgage company in India. HDFC provides
financial assistance to individuals, corporates and developers for the purchase or construction of
residential housing. It also provides property related services (e.g. property identification, sales
services and valuation), training and consultancy. Of these activities, housing finance remains the
dominant activity. HDFC has a client base of around 9.5 lac borrowers, around 1 million depositors,
over 91,000 shareholders and 50,000 deposit agents, as at June 30, 2007. HDFC has raised funds
from international agencies such as the World Bank, IFC (Washington), USAID, DEG, ADB and
KfW, international syndicated loans, domestic term loans from banks and insurance companies,
bonds and deposits. HDFC has received the highest rating for its bonds and deposits program for the
twelfth year in succession. HDFC Standard Life Insurance Company Limited, promoted by HDFC
was the first life insurance
21
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company in the private sector to be granted a Certificate of Registration (on October 23, 2000)
by the Insurance Regulatory and Development Authority to transact life insurance business in India.
Standard Life Investments Limited
The Standard Life Assurance Company was established in 1825 and has considerable experience in
global financial markets. The company was present in the Indian life insurance market from 1847 to
1938 when agencies were set up in Kolkata and Mumbai. The company re-entered the Indian market
in 1995, when an agreement was signed with HDFC to launch an insurance joint venture. On April
2006, the Board of The Standard Life Assurance Company recommended that it should demutualiseand Standard Life plc float on the London Stock Exchange. At a Special General Meeting held in
May voting members overwhelmingly voted in favour of this. The Court of Session in Scotland
approved this in June and Standard Life plc floated on the London Stock Exchange on 10th July
2006. Standard Life Investments was launched as an investment management company in 1998. It is
a wholly owned subsidiary of Standard Life Investments (Holdings) Limited, which in turn is a
wholly owned subsidiary of Standard Life plc. Standard Life Investments is a leading asset
management company, with approximately US$ 282 billion as at June 30, 2007, of assets under
management. The company operates in the UK, Canada, Hong Kong, China, Korea, Ireland and the
USA to ensure it is able to form a truly global investment view. In order to meet the different needs
and risk profiles of its clients, Standard Life Investments Limited manages a diverse portfolio
covering all of the major markets world-wide, which includes a range of private and public equities,
22
government and company bonds, property investments and various derivative instruments. The
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company's current holdings in UK equities account for approximately 1.8% of the market
capitalisation of the London Stock Exchange.
MANAGEMENT :
HDFC Trustee Company Limited:
a company incorporated under the Companies Act, 1956 is the Trustee to the Mutual Fund vide the
Trust deed dated June 8, 2000, as amended from time to time. HDFC Trustee Company Limited is a
wholly owned subsidiary of HDFC Limited.
HDFC Asset Management Company Limited (AMC):
was incorporated under the Companies Act, 1956, on December 10, 1999, and was approved to actas an Asset Management Company for the Mutual Fund by SEBI on July 3, 2000. The registered
office of the AMC is situated at Ramon House, 3rd Floor, H.T. Parekh Marg, 169, Backbay
Reclamation, Churchgate, Mumbai - 400 020. In terms of the Investment Management Agreement,
the Trustee has appointed HDFC Asset Management Company Limited to manage the Mutual Fund.
The paid up capital of the AMC is Rs. 45.161 crore.
The present equity shareholding pattern of the AMC is as follows:
Particulars % of the paid up equity capital
HDFC 60
Standard Life Investments Limited 40
Zurich Insurance Company (ZIC), the Sponsor of Zurich India Mutual Fund, following a review of
its overall strategy, had decided to divest its Asset Management business in India.
23
The AMC had entered into an agreement with ZIC to acquire the said business, subject to
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necessary regulatory approvals. On obtaining the regulatory approvals, the Schemes of Zurich India
Mutual Fund has now migrated to HDFC Mutual Fund on June 19, 2003.
The AMC is managing 24 open-ended schemes of the Mutual Fund viz. HDFC Growth Fund (HGF),
HDFC Balanced Fund (HBF), HDFC Income Fund (HIF), HDFC Liquid Fund (HLF), HDFC Long
Term Advantage Fund (HLTAF), HDFC Children's Gift Fund (HDFC CGF), HDFC Gilt Fund
(HGILT), HDFC Short Term Plan (HSTP), HDFC Index Fund, HDFC Floating Rate Income Fund
(HFRIF), HDFC Equity Fund (HEF), HDFC Top 200 Fund (HT200), HDFC Capital Builder Fund
(HCBF), HDFC TaxSaver (HTS), HDFC Prudence Fund (HPF), HDFC High Interest Fund (HHIF),HDFC Cash Management Fund (HCMF), HDFC MF Monthly Income Plan (HMIP), HDFC Core &
Satellite Fund (HCSF), HDFC Multiple Yield Fund (HMYF), HDFC Premier Multi-Cap Fund
(HPMCF), HDFC Multiple Yield Fund . Plan 2005 (HMYF-Plan 2005), HDFC Quarterly Interval
Fund (HQIF) and HDFC Arbitrage Fund (HAF).
The AMC is also managing 8 closed ended Schemes of the HDFC Mutual Fund viz. HDFC Long
Term Equity Fund, HDFC Mid-Cap Opportunities Fund, HDFC Fixed Maturity Plans, HDFC Fixed
Maturity Plans - Series II, HDFC Fixed Maturity Plans - Series III, HDFC Fixed Maturity Plans -
Series IV, HDFC Fixed Maturity Plans - Series V and HDFC Fixed Maturity Plans - Series VI.
The AMC is also providing portfolio management / advisory services and such activities are not in
conflict with the activities of the Mutual Fund. The AMC has renewed its registration
24
from SEBI vide Registration No. - PM / INP000000506 dated December 8, 2006 to act as a Portfolio
Manager under the SEBI (Portfolio Managers) Regulations, 1993. The Certificate of Registration is
valid from January 1, 2007 to December 31, 2009.
THE TRUSTEE
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HDFC Trustee Company Limited, a company incorporated under the Companies Act, 1956 is the
Trustee to HDFC Mutual Fund vide the Trust deed dated June 8, 2000, as amended from time to
time. HDFC Trustee Company Ltd is wholly owned subsidiary of HDFC
The Board of Directors of HDFC Trustee company Limited consists of the following eminent
persons.
o Mr. James Aird
o Mr. Anil Kumar Hirjee
o Mr. Shishir K. Diwanji
o Mr. Ranjan Sanghi
o Mr. V. Srinivasa Rangan
HDFC Asset Management Company Limited (AMC)
HDFC Asset Management Company Ltd (AMC) was incorporated under the Companies Act, 1956,
on December 10, 1999, and was approved to act as an Asset Management Company for the HDFC
Mutual Fund by SEBI vide its letter dated June 30, 2000.
The registered office of the AMC is situated at Ramon House, 3rd Floor, H.T. Parekh Marg, 169,
Backbay Reclamation, Churchgate, Mumbai - 400 020.
In terms of the Investment Management Agreement, the Trustee has appointed the AMC to manage
the Mutual Fund.
25
As per the terms of the Investment Management Agreement, the AMC will conduct the operations of
the Mutual Fund and manage assets of the schemes, including the schemes launched from time to
time.
The present equity shareholding pattern of the AMC is as follows:
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Particulars % of the paid up equity capital
Housing Development Finance Corporation Limited 60
Standard Life Investments Limited 40
Zurich Insurance Company (ZIC), the Sponsor of Zurich India Mutual Fund, following a review of
its overall strategy, had decided to divest its Asset Management business in India. The AMC had
entered into an agreement with ZIC to acquire the said business, subject to necessary regulatory
approvals.
On obtaining the regulatory approvals, the following Schemes of Zurich India Mutual Fund have
migrated to HDFC Mutual Fund on June 19, 2003. These Schemes have been renamed as follows:The AMC is also managing 8 closed ended Schemes of the HDFC Mutual Fund viz. HDFC Long
Term Equity Fund, HDFC Mid-Cap Opportunities Fund, HDFC Fixed Maturity Plans, HDFC Fixed
Maturity Plans - Series II, HDFC Fixed Maturity Plans - Series III, HDFC Fixed Maturity Plans -
Series IV, HDFC Fixed Maturity Plans - Series V and HDFC Fixed Maturity Plans - Series VI.
The AMC is also providing portfolio management / advisory services and such activities are not in
conflict with the activities of the Mutual Fund. The AMC has renewed its registration
26
from SEBI vide Registration No. - PM / INP000000506 dated December 8, 2006 to act as a Portfolio
Manager under the SEBI (Portfolio Managers) Regulations, 1993. The Certificate of Registration is
valid from January 1, 2007 to December 31, 2009.
The Board of Directors of the HDFC Asset Management Company Limited (AMC) consists of
the following eminent persons.
o Mr. Deepak S Parekh
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o Mr. N. Keith Skeoch
o Mr. Keki M. Mistry
o Mr Mark Connolly
o Mr. Hoshang S. Billimoria
o Mr. Humayun Dhanrajgir
o Mr. P. M. Thampi
o Dr. Deepak B Phatak
o Mr Rajeshwar Raj Bajaaj
o Mr. Vijay Merchant
o Ms. Renu S. Karnad
o Mr. Milind Barve
HDFC Mutual Fund Products
Schemes
Equity Funds
HDFC Infrastructure Fund HDFC Arbitrage Fund
27
HDFC Capital Builder Fund
HDFC Core & Satellite Fund
HDFC Equity Fund
HDFC Growth Fund
HDFC Long Term Equity Fund
HDFC Premier Multi-Cap Fund
HDFC Top 200 Fund
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HDFC Mid-Cap Opportunities Fund
HDFC Index Fund
HDFC Index Fund Nifty Plan
HDFC Index Fund SENSEX Plan
HDFC Index Fund SENSEX Plus Plan
Equity Linked Savings Scheme
HDFC Long Term Advantage Fund
HDFC TaxSaver
Balanced Funds
HDFC Balanced Fund
HDFC Children's Gift Fund Investment Plan
HDFC Children's Gift Fund Savings Plan
HDFC Prudence Fund
Debt Funds
HDFC Cash Management Fund - Savings Plus Plan
28
HDFC Floating Rate Income Fund Long Term Plan
HDFC Floating Rate Income Fund Short Term Plan - Retail Option
HDFC Gilt Fund Short Term Plan
HDFC Gilt Fund Long Term Plan
HDFC High Interest Fund
HDFC High Interest Fund - Short Term Plan
HDFC Income Fund
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HDFC MF Monthly Income Plan - Short Term Plan
HDFC MF Monthly Income Plan - Long Term Plan
HDFC Multiple Yield Fund
HDFC Multiple Yield Fund Plan 2005
HDFC Short Term Plan
HDFC Quarterly Interval Fund - Plan A
HDFC Quarterly Interval Fund - Plan B
HDFC Quarterly Interval Fund - Plan C
Liquid Funds
HDFC Cash Management Fund - Call Plan
HDFC Cash Management Fund - Savings Plan
HDFC Liquid Fund
HDFC Liquid Fund - PREMIUM PLAN
HDFC Liquid Fund - PREMIUM PLUS PLAN
29
Bombay Stock Exchange (BSE)
About the Bombay Stock Exchange
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Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a
rich heritage. Popularly known as "BSE", it was established as "The Native
Share Stock Brokers Association" in 1875. It is the first stock exchange in the
country to obtain permanent recognition in 1956 from the Government of India
under the Securities Contracts (Regulation) Act, 1956.The Exchange's pivotal
and pre-eminent role in the development of the Indian capital market is widely
recognized and its index, SENSEX, is tracked worldwide. Earlier an Association
of Persons (AOP), the Exchange is now a demutualised and corporative entity
incorporated under the provisions of the Companies Act, 1956,
30
BSE(Corporatisation and Demutualization) Scheme, 2005 notified by the
Securities and Exchange Board of India (SEBI).
With demutualization, the trading rights and ownership rights have been de-
linked effectively addressing concerns regarding perceived and real conflicts of
interest. The Exchange is professionally managed under the overall direction of
the Board of Directors. The Board comprises eminent professionals,
representatives of Trading Members and the Managing Director of the
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Exchange. The Board is inclusive and is designed to benefit from the
participation of market intermediaries.
In terms of organisation structure, the Board formulates larger policy issues and
exercises over-all control. The committees constituted by the Board are broad-
based. The day-to-day operations of the Exchange are managed by the
Managing Director and a management team of professionals.
31
The Exchange has a nation-wide reach with a presence in 417 cities and towns
of India. The systems and processes of the Exchange are designed to
safeguard market integrity and enhance transparency in operations. During the
year 2004-2005, the trading volumes on the Exchange showed robust growth.
The Exchange provides an efficient and transparent market for trading in
equity, debt instruments and derivatives. The BSE's On Line Trading System
(BOLT) is a proprietory system of the Exchange and is BS 7799-2-2002
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certified. The surveillance and clearing & settlement functions of the Exchange
are ISO 9001:2000 certified.
32
History of the Bombay Stock Exchange :
The Bombay Stock Exchange is known as the oldest exchange in Asia. It traces itshistory to the 1850s, when stockbrokers would gather under banyan trees in front of
Mumbai's Town Hall. The location of these meetings changed many times, as the
number of brokers constantly increased. The group eventually moved to Dalal Street
in 1874 and in 1875 became an official organization known as 'The Native Share &
Stock Brokers Association'. In 1956, the BSE became the first stock exchange to be
recognized by the Indian Government under the Securities Contracts Regulation
Act. The Bombay Stock Exchange developed the BSE Sensex in 1986,
giving the BSE a means to measure overall performance of the
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exchange. In 2000 the BSE used this index to open its derivatives
market, trading Sensex futures contracts. The development of Sensex
options along with equity derivatives followed in 2001 and 2002,
expanding the BSE's trading platform. Historically an open-cry floor trading
exchange, the Bombay Stock Exchange switched to an electronic trading
system in 1995. It took the exchange only fifty days to make this transition.
33
OBJECTIVES
ANDMETHODOLOGY
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OBJECTIVES
Statement of the problem:
The study totally attempts to know the performance of diversified funds with reference to
HDFC Mutual Fund.
Objectives of the Project:
The various objectives of the study are
Primary Objective:
To evaluate the performance of diversified equity funds for the last 1 year.
To find out the perception of investors towards various mutual funds options.
Secondary Objectives:
To know concept of mutual fund industry in India.
To get exposure about mutual fund industry
To find out which funds is performing well.
Study the volatility in Fidelity mutual fund for the period July-2007 to dec-2007
To measure return and risk of investing in HDFC mutual fund
To measure the performance of HDFC mutual fund using Sharpes Model, Treynors
Model.
To find out the correlation of HDFC mutual fund
To measure the fund performance for (July 2007-Dec-2007)
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34
RESEARCH METHODOLOGY
Research design or research methodology is the procedure of collecting, analyzing and interpreting
the data to diagnose the problem and react to the opportunity in such a way where the costs can be
minimized and the desired level of accuracy can be achieved to arrive at a particular conclusion.
The methodology used in the study for the completion of the project and the fulfillment of the
project objectives, is as follows:
Collection of Data:
Data can be collected on two types
1. Primary data
2. Secondary data.
Primary Data:
In this method I follow a structured questionnaire and this can be taken to Investors
perception towards various mutual funds schemes.
Secondary data:
In this method I collected the performance reports of the funds, company profile, Industry
profile, fund fact sheets, journals, and some information through internet.
LIMITATIONS
This study is restricted to Diversified funds only.
Different people may interpret the same analysis in different
ways.
The study is made with in the geographical boundaries of Hyderabad only.
People may not be willing to spend their time in answering the
Questions.
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35
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DATA ANALYSISAND
INTERPRETATION
Table:1Calculation of Risk of HDFC Tax saver Fund for the month of July-07
Date
NetAssetValue
Closingprice S. No.
Returns(y)
Returns(x)
Returns-Mean
(Returns-Mean)^2 x^2 x*y
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2-Jul-07 66.1314664.2
6
3-Jul-07 66.77 14806.51 1 0.98 0.97 0.78 0.61 0.94 0.95
4-Jul-07 66.6114880.2
4 2 -0.25 0.50 -0.45 0.20 0.25 -0.13
5-Jul-07 66.27 14861.89 3 -0.50 -0.12 -0.70 0.49 0.02 0.06
6-Jul-07 67.03 14964.12 4 1.14 0.69 0.95 0.90 0.47 0.78
9-Jul-07 67.42 15045.73 5 0.59 0.55 0.39 0.16 0.30 0.32
10-Jul-07 67.16 15009.88 6 -0.39 -0.24 -0.58 0.34 0.06 0.09
11-Jul-07 66.86 14910.62 7 -0.44 -0.66 -0.63 0.40 0.44 0.29
12-Jul-07 67.61 15092.04 8 1.11 1.22 0.92 0.84 1.48 1.35
13-Jul-07 67.97 15272.72 9 0.54 1.20 0.34 0.12 1.43 0.64
16-Jul-07 67.37 15311.22 10 -0.89 0.25 -1.08 1.17 0.06 -0.22
17-Jul-07 67.25 15289.82 11 -0.18 -0.14 -0.37 0.14 0.02 0.03
18-Jul-07 67.07 15301.17 12 -0.26 0.07 -0.46 0.21 0.01 -0.02
19-Jul-07 67.91 15550.13 13 1.25 1.63 1.05 1.11 2.65 2.03
20-Jul-07 68.3415565.5
5 14 0.64 0.10 0.45 0.20 0.01 0.06
23-Jul-07 68.96 15732.2 15 0.91 1.07 0.71 0.51 1.15 0.97
24-Jul-07 69.09 15794.92 16 0.18 0.40 -0.02 0.00 0.16 0.07
25-Jul-07 68.71 15699.33 17 -0.55 -0.61 -0.74 0.55 0.37 0.33
26-Jul-07 69.15 15776.31 18 0.65 0.49 0.46 0.21 0.24 0.32
27-Jul-07 67.63 15234.57 19 -2.20 -3.43 -2.39 5.73 11.79 7.55
30-Jul-07 67.43 15260.91 20 -0.30 0.17 -0.49 0.24 0.03 -0.05
31-Jul-07 68.82 15550.99 21 2.05 1.90 1.86 3.45 3.61 3.90
Average 0.19 Variance 0.84 Sum
Sum 4.08 6.00 Risk 0.91 25.47 19.34
36
Returns of HDFC Tax Saver Fund for the month of july-07
Risk free Rate 0.06
n*sum x y 406.09
Sum x 6.00
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Sum y 4.08
n*sumx^2 534.97
sumx^2 648.96
Beta -3.35
Returns 0.19
Risk 0.91
Shrpes 0.15
Treynor -0.04
Graph:1Graphical Representation of HDFC Tax Saver Dividend Plan and Bse Returns for the Month
of JUly-07
Graphical Representationfor theHDFCTaxsaverDividendPlan&BSEReturns
-4.00
-3.00
-2.00
-1.00
0.00
1.00
2.00
3.00
1 3 5 7 9 11 13 15 17 19 21
Time
Ret
Returns(y)
Returns(x)
for the Month of July are not much affected by change in market environment, as the Beta
is -3.35 which is less than the market value of Beta; the fund is not an antagonistic fund. It
generated returns 0.15.
It has the Sharpe ratio giving a risk Premium of 0.91 for every unit of Standard Deviation
Risk.
It has the Trynors ratio generating -0.04 returns above the risk free rate of return for every
unit of Systematic risk.
37
Table:2Calculation of Risk of HDFC Tax saver Fund for the month of August07
Date
NetAssetValue
Closingprice S. No.
Returns(y) Returns(x)
Returns-Mean
(Returns-Mean)^2 x^2 x*y
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1-Aug-07 66.54 14935.77 1 -3.30 -3.96 -3.41 11.62 15.65 13.06
2-Aug-07 67.07 14985.7 2 0.79 0.33 0.68 0.47 0.11 0.27
3-Aug-07 67.82 15138.4 3 1.11 1.02 1.00 1.01 1.04 1.13
6-Aug-07 66.97 14903.03 4 -1.25 -1.55 -1.36 1.85 2.42 1.95
7-Aug-07 67.22 14932.77 5 0.38 0.20 0.27 0.07 0.04 0.08
8-Aug-07 68.45 15307.98 6 1.83 2.51 1.72 2.96 6.31 4.59
9-Aug-07 67.45 15100.15 7 -1.46 -1.36 -1.57 2.46 1.84 1.98
10-Aug-07 66.94 14868.25 8 -0.76 -1.54 -0.87 0.76 2.36 1.17
13-Aug-07 67.37 15017.21 9 0.65 1.00 0.54 0.29 1.00 0.65
14-Aug-07 67.37 15000.91 10 0.00 -0.11 -0.11 0.01 0.01 0.00
16-Aug-07 64.97 14358.21 11 -3.57 -4.28 -3.67 13.50 18.36 15.28
17-Aug-07 64.14 14141.52 12 -1.28 -1.51 -1.39 1.94 2.28 1.94
20-Aug-07 65.04 14427.55 13 1.41 2.02 1.30 1.68 4.09 2.84
21-Aug-07 63.11 13989.11 14 -2.96 -3.04 -3.07 9.43 9.23 9.00
22-Aug-07 63.70 14248.66 15 0.94 1.86 0.83 0.69 3.44 1.74
23-Aug-07 63.36 14163.98 16 -0.54 -0.59 -0.65 0.42 0.35 0.32
24-Aug-07 64.24 14424.87 17 1.39 1.84 1.28 1.65 3.39 2.57
27-Aug-07 65.87 14842.38 18 2.54 2.89 2.43 5.90 8.38 7.35
28-Aug-07 66.33 14919.19 19 0.69 0.52 0.58 0.33 0.27 0.36
29-Aug-07 66.38 14993.04 20 0.08 0.50 -0.03 0.00 0.25 0.04
30-Aug-07 66.97 15121.74 21 0.89 0.86 0.78 0.61 0.74 0.76
31-Aug-07 67.92 15318.6 22 1.42 1.30 1.31 1.72 1.69 1.85
Average 0.11 Variance 2.27 Sum
Sum 2.29 2.87 Risk 1.51 67.61 55.86
38
Returns of HDFC Tax Saver Fund for the month of August07
Risk free Rate 0.06
n*sum x y 1229.01
Sum x 2.87
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Sum y 2.29
n*sumx^2 1487.37
Sumx^2 4570.82
Beta -0.40
Returns 0.11
Risk 1.51
Shrpes 0.03
Treynor -0.12
Graph:2
Graphical Representation of HDFC Tax Saver Dividend Plan and Bse Returns for the Month
of August-07
Graphical Representationfor theHDFCTaxsaver
DividendPlan&BSEReturns
-5.00
-4.00
-3.00
-2.00
-1.00
0.00
1.00
2.00
3.00
4.00
1 3 5 7 9 11 13 15 17 19 21
Time
Ret
Returns(y)
Returns(x)
It has the Sharpe ratio giving a risk Premium of 1.51 for every unit of Standard Deviation
Risk.It has the Trynors ratio generating -0.12 returns above the risk free rate of return for every
unit of Systematic risk.
The Returns generated by HDFC Tax Saver Dividend Fund for the Month of August are not
much affected by change in market surroundings, as the Beta is -0.40 which is less than the
market value of Beta; the fund is not a destructive fund. It generated returns 0.03.
39
Table:3Calculation of Risk of HDFC Tax saver Fund for themonth of September-07
Date
NetAssetValue
Closingprice S. No.
Returns(y)
Returns(x)
Returns-Mean
(Returns-Mean)^2 x^2 x*y
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3-Sep-07 68.30 15422.05 1 0.56 0.68 0.15 0.02 0.46 0.38
4-Sep-07 68.38 15465.4 2 0.12 0.28 -0.29 0.09 0.08 0.03
5-Sep-07 68.22 15446.15 3 -0.24 -0.12 -0.65 0.43 0.02 0.03
6-Sep-07 68.77 15616.31 4 0.81 1.10 0.40 0.16 1.21 0.89
7-Sep-07 68.91 15590.42 5 0.20 -0.17 -0.21 0.04 0.03 -0.03
10-Sep-07 69.02 15596.83 6 0.17 0.04 -0.24 0.06 0.00 0.01
11-Sep-07 68.79 15542.77 7 -0.34 -0.35 -0.76 0.57 0.12 0.12
12-Sep-07 68.66 15505.36 8 -0.18 -0.24 -0.60 0.36 0.06 0.04
13-Sep-07 69.13 15614.44 9 0.69 0.70 0.28 0.08 0.49 0.48
14-Sep-07 68.74 15603.8 10 -0.57 -0.07 -0.98 0.96 0.00 0.04
17-Sep-07 68.62 15504.43 11 -0.18 -0.64 -0.59 0.35 0.41 0.12
18-Sep-07 69.28 15669.12 12 0.97 1.06 0.55 0.31 1.13 1.03
19-Sep-07 70.96 16322.75 13 2.43 4.17 2.01 4.06 17.40 10.12
20-Sep-07 71.35 16347.95 14 0.55 0.15 0.14 0.02 0.02 0.08
21-Sep-07 71.95 16564.23 15 0.84 1.32 0.43 0.19 1.75 1.12
24-Sep-07 72.67 16845.83 16 1.00 1.70 0.59 0.35 2.89 1.71
25-Sep-07 72.50 16899.54 17 -0.23 0.32 -0.65 0.42 0.10 -0.07
26-Sep-07 72.80 16921.39 18 0.40 0.13 -0.01 0.00 0.02 0.05
27-Sep-07 73.16 17150.56 19 0.50 1.35 0.09 0.01 1.83 0.68
28-Sep-07 73.72 17291.1 20 0.76 0.82 0.35 0.12 0.67 0.63
Average 0.41 Variance 0.43 Sum
Sum 8.25 12.25 Risk 0.66 28.69 17.44
40
Returns of HDFC Tax Saver Fund for the month of September-07
Risk free Rate 0.06
n*sum x y 348.89
Sum x 12.25
8/2/2019 Performance of Different Schemes in Mutual Funds
56/98
Sum y 8.25
n*sumx^2 573.88
Sumx^2 823.35
Beta -0.99
Returns 0.41
Risk 0.66
Shrpes 0.54
Treynor -0.35
Graph:3
Graphical Representation of HDFC Tax Saver Dividend Plan and Bse Returns for the Month
of September-07
Graphical RepresentationfortheHDFCTaxsaver
DividendPlan&BSEReturns
-1.00
0.00
1.00
2.00
3.00
4.00
5.00
1 3 5 7 9 11 13 15 17 19
Time
Ret
Returns(y)
Returns(x)
It has the Trynors ratio generating -0.35 returns above the risk free rate of return for every
unit of Systematic risk.
It has the Sharpe ratio giving a risk Premium of 0.66 for every unit of Standard Deviation
Risk.The Returns generated by HDFC Tax Saver Dividend Fund for the Month of September are
not much affected by change in market environment, as the Beta is -0.99 which is less than the
market value of Beta; the fund is not an aggressive fund. It generated returns 0.54.
41
Table:4 Calculation of Risk of HDFC Tax saver Fund for the month of October-07
Date
NetAssetValue
Closingprice S. No.
Returns(y) Returns(x)
Returns-Mean
(Returns-Mean)^2 x^2 x*y
1-Oct-07 73.82 17328.62 1 0.14 0.22 -0.48 0.23 0.05 0.03
8/2/2019 Performance of Different Schemes in Mutual Funds
57/98
3-Oct-07 74.66 17847.04 2 1.14 2.99 0.52 0.27 8.95 3.40
4-Oct-07 74.71 17777.14 3 0.07 -0.39 -0.55 0.30 0.15 -0.03
5-Oct-07 74.87 17773.36 4 0.22 -0.02 -0.39 0.15 0.00 0.00
8-Oct-07 73.64 17491.39 5 -1.65 -1.59 -2.26 5.10 2.52 2.61
9-Oct-07 75.74 18280.24 6 2.85 4.51 2.24 5.00 20.34 12.85
10-Oct-07 76.83 18658.25 7 1.44 2.07 0.83 0.68 4.28 2.98
11-Oct-07 77.40 18814.07 8 0.75 0.84 0.13 0.02 0.70 0.62
12-Oct-07 76.44 18419.04 9 -1.25 -2.10 -1.86 3.47 4.41 2.62
15-Oct-07 79.08 19058.67 10 3.46 3.47 2.85 8.10 12.06 12.02
16-Oct-07 79.07 19051.86 11 -0.02 -0.04 -0.63 0.40 0.00 0.00
17-Oct-07 78.16 18715.82 12 -1.14 -1.76 -1.76 3.09 3.11 2.02
18-Oct-07 75.91 17998.39 13 -2.88 -3.83 -3.49 12.21 14.69 11.04
19-Oct-07 73.92 17559.98 14 -2.62 -2.44 -3.23 10.44 5.93 6.38
22-Oct-07 73.98 17613.99 15 0.07 0.31 -0.54 0.30 0.09 0.02
23-Oct-07 77.67 18492.84 16 4.99 4.99 4.38 19.18 24.90 24.92
24-Oct-07 78.50 18512.91 17 1.07 0.11 0.45 0.20 0.01 0.12
25-Oct-07 79.71 18770.89 18 1.55 1.39 0.94 0.88 1.94 2.16
26-Oct-07 81.97 19243.17 19 2.83 2.52 2.21 4.90 6.33 7.11
29-Oct-07 84.63 19977.67 20 3.25 3.82 2.64 6.94 14.57 12.40
30-Oct-07 83.89 19783.51 21 -0.87 -0.97 -1.49 2.21 0.94 0.85
31-Oct-07 83.59 19837.99 22 -0.36 0.28 -0.98 0.95 0.08 -0.10
Average 0.61 Variance 4.04 Sum
Sum 12.89 14.15 Risk 2.01 126.00 103.97
42
Returns of HDFC Tax Saver Fund for the month of October-07Risk free Rate 0.06
n*sum x y 2287.37
Sum x 14.15
Sum y 12.89
8/2/2019 Performance of Different Schemes in Mutual Funds
58/98
n*sumx^2 2772.10
Sumx^2 15877.18
Beta -0.16
Returns 0.61
Risk 2.01
Shrpes 0.28
Treynor -3.45
Graph-4
Graphical Representation of HDFC Tax Saver Dividend Plan and Bse Returns for the Month
of October-07
Graphical RepresentationfortheHDFCTaxsaver
DividendPlan&BSEReturns
-5.00
-4.00
-3.00
-2.00
-1.00
0.00
1.00
2.00
3.00
4.00
5.00
6.00
1 3 5 7 9 11 13 15 17 19 21
Time
Re Returns(y)
Returns(x)
The Returns generated by HDFC Tax Saver Dividend Fund for the Month of October are nomuch affected by change in market conditions, as the Beta is -0.16 which is less than the market
value of Beta; the fund is not a forceful fund. It generated returns 0.28.It has the Sharpe ratio
giving a risk Premium of 2.01 for every unit of Standard Deviation Risk.
It has the Trynors ratio generating -3.45 returns above the risk free rate of return for every
unit of Systematic risk.
43
Table-5Calculation of Risk of HDFC Tax saver Fund for the month of November-07
Date
NetAssetValue
Closingprice S. No.
Returns(y) Returns(x)
Returns-Mean
(Returns-Mean)^2 x^2 x*y
1-Nov-07 83.21 19724.35 1 -0.45 -0.57 -0.42 0.17 0.33 0.26
2-Nov-07 83.93 19976.23 2 0.87 1.28 0.90 0.81 1.63 1.11
5-Nov-07 83.10 19590.78 3 -1.00 -1.93 -0.96 0.92 3.72 1.92
8/2/2019 Performance of Different Schemes in Mutual Funds
59/98
6-Nov-07 82.28 19400.67 4 -0.98 -0.97 -0.95 0.90 0.94 0.95
7-Nov-07 81.99 19289.83 5 -0.36 -0.57 -0.32 0.10 0.33 0.20
8-Nov-07 80.75 19058.93 6 -1.51 -1.20 -1.48 2.19 1.43 1.81
12-Nov-07 80.12 18737.27 7 -0.77 -1.69 -0.74 0.55 2.85 1.31
13-Nov-07 81.30 19035.48 8 1.47 1.59 1.50 2.26 2.53 2.34
14-Nov-07 84.20 19929.06 9 3.58 4.69 3.61 13.05 22.04 16.79
15-Nov-07 84.61 19784.89 10 0.49 -0.72 0.52 0.27 0.52 -0.35
16-Nov-07 84.64 19698.36 11 0.03 -0.44 0.07 0.00 0.19 -0.01
19-Nov-07 85.70 19633.36 12 1.25 -0.33 1.28 1.64 0.11 -0.41
20-Nov-07 83.75 19280.8 13 -2.27 -1.80 -2.24 5.01 3.22 4.08
21-Nov-07 80.43 18602.62 14 -3.96 -3.52 -3.93 15.41 12.37 13.93
22-Nov-07 79.69 18526.32 15 -0.93 -0.41 -0.89 0.79 0.17 0.38
23-Nov-07 80.45 18852.87 16 0.96 1.76 0.99 0.99 3.11 1.69
26-Nov-07 81.99 19247.54 17 1.91 2.09 1.94 3.78 4.38 4.00
27-Nov-07 81.78 19127.73 18 -0.25 -0.62 -0.21 0.05 0.39 0.15
28-Nov-07 80.92 18938.87 19 -1.06 -0.99 -1.03 1.05 0.97 1.05
29-Nov-07 80.97 19003.26 20 0.07 0.34 0.11 0.01 0.12 0.02
30-Nov-07 82.75 19363.19 21 2.19 1.89 2.23 4.96 3.59 4.15
Average -0.04 Variance 2.62 Sum
Sum -0.74 -2.10 Risk 1.62 64.94 55.37
44
Returns of HDFC Tax Saver Fund for the month of November-07
Risk free Rate 0.06
n*sum x y 1162.78
Sum x -2.10
Sum y -0.74
n*sumx^2 1363.81
8/2/2019 Performance of Different Schemes in Mutual Funds
60/98
sumx^2 4217.66
Beta -0.41
Returns -0.04
Risk 1.62
Shrpes -0.06
Treynor 0.23
Graph-5Graphical Representation of HDFC Tax Saver Dividend Plan and Bse Returns for the Month
of November-07
Graphical RepresentationfortheHDFCTaxsaver
DividendPlan&BSEReturns
-5.00
-4.00
-3.00
-2.00
-1.00
0.00
1.00
2.00
3.00
4.00
5.00
6.00
1 3 5 7 9 11 13 15 17 19 21
Time
Re Returns(y)
Returns(x)
It has the Sharpe ratio giving a risk Premium of 1.62 for every unit of Standard Deviation
Risk.It has the Trynors ratio generating 0.23 returns above the risk free rate of return for every
unit of Systematic risk.
The Returns generated by HDFC Tax Saver Dividend Fund for the Month of November
are not much affected by change in market state of affairs, as the Beta is -0.41 which is less
than the market value of Beta; the fund is not a destructive fund. It generated returns -0.06.
45
Table-6 Calculation of Risk of HDFC Tax saver Fund for the month of December-07
Date
NetAssetValue
Closingprice S. No.
Returns(y) Returns(x)
Returns-Mean
(Returns-Mean)^2 x^2 x*y
3-Dec-07 83.62 19603.41 1 1.06 1.24 0.85 0.73 1.54 1.31
4-Dec-07 83.52 19529.5 2 -0.13 -0.38 -0.34 0.11 0.14 0.05
8/2/2019 Performance of Different Schemes in Mutual Funds
61/98
5-Dec-07 84.57 19738.07 3 1.26 1.07 1.06 1.12 1.14 1.35
6-Dec-07 84.96 19795.87 4 0.46 0.29 0.26 0.07 0.09 0.14
7-Dec-07 84.88 19966 5 -0.10 0.86 -0.30 0.09 0.74 -0.08
10-Dec-07 84.94 19930.68 6 0.08 -0.18 -0.13 0.02 0.03 -0.01
11-Dec-07 86.04 20290.89 7 1.29 1.81 1.09 1.18 3.27 2.33
12-Dec-07 86.22 20375.87 8 0.21 0.42 0.01 0.00 0.18 0.09
13-Dec-07 85.66 20104.39 9 -0.65 -1.33 -0.85 0.73 1.78 0.87
14-Dec-07 85.48 20030.83 10 -0.21 -0.37 -0.42 0.17 0.13 0.08
17-Dec-07 82.47 19261.35 11 -3.53 -3.84 -3.73 13.92 14.76 13.54
18-Dec-07 82.20 19079.64 12 -0.32 -0.94 -0.52 0.27 0.89 0.30
19-Dec-07 82.12 19091.96 13 -0.10 0.06 -0.31 0.10 0.00 -0.01
20-Dec-07 82.14 19162.57 14 0.03 0.37 -0.18 0.03 0.14 0.01
24-Dec-07 83.97 19854.12 15 2.23 3.61 2.03 4.11 13.02 8.05
26-Dec-07 85.27 20192.52 16 1.55 1.70 1.34 1.81 2.91 2.64
27-Dec-07 85.21 20216.72 17 -0.08 0.12 -0.28 0.08 0.01 -0.01
28-Dec-07 85.40 20206.95 18 0.23 -0.05 0.02 0.00 0.00 -0.01
31-Dec-07 85.92 20286.99 19 0.62 0.40 0.41 0.17 0.16 0.24
Average 0.20 Variance 1.30 Sum
Sum 3.89 5.10 Risk 1.14 40.92 30.88
46
Returns of HDFC Tax Saver Fund for the month of December-07
Risk free Rate 0.06
n*sum x y 586.74
Sum x 5.10
Sum y 3.89
n*sumx^2 777.46
sumx^2 1674.34
8/2/2019 Performance of Different Schemes in Mutual Funds
62/98
Beta -0.63
Returns 0.20
Risk 1.14
Shrpes 0.13
Treynor -0.23
Graph-6Graphical Representation of HDFC Tax Saver Dividend Plan and Bse Returns for the Month
of December-07
Graphical RepresentationfortheHDFCTaxsaver
DividendPlan&BSEReturns
-5.00
-4.00
-3.00
-2.00
-1.00
0.00
1.00
2.00
3.00
4.00
1 3 5 7 9 11 13 15 17 19
Time
R
et
Returns(y)
Returns(x)
It has the Trynors ratio generating -0.23 returns above the risk free rate of return for every
unit of Systematic risk.
It has the Sharpe ratio giving a risk Premium of 1.14 for every unit of Standard Deviation
Risk.
The Returns generated by HDFC Tax Saver Dividend Fund for the Month of December are
not much affected by change in market conditions, as the Beta is -0.63 which is less than the
market value of Beta; the fund is not a belligerent fund. It generated returns 0.13.
47
Table:7 Calculation of Risk of HDFC Monthly Income Plan Long term Plan-Growth optionfor the month of July-07.
Date
NetAssetValue
Closingprice S. No.
Returns(y) Returns(x)
Returns-Mean
(Returns-Mean)^2 x^2 x*y
2-Jul-07 15.48 14664.3
3-Jul-07 15.55 14806.5 1 0.43 0.97 0.34 0.12 0.94 0.41
4-Jul-07 15.54 14880.2 2 -0.03 0.50 -0.11 0.01 0.25-
0.01
8/2/2019 Performance of Different Schemes in Mutual Funds
63/98
5-Jul-07 15.51 14861.9 3 -0.25 -0.12 -0.33 0.11 0.02 0.03
6-Jul-07 15.53 14964.1 4 0.13 0.69 0.05 0.00 0.47 0.09
9-Jul-07 15.59 15045.7 5 0.42 0.55 0.33 0.11 0.30 0.23
10-Jul-07 15.58 15009.9 6 -0.06 -0.24 -0.15 0.02 0.06 0.01
11-Jul-07 15.61 14910.6 7 0.16 -0.66 0.08 0.01 0.44-
0.11
12-Jul-07 15.67 15092 8 0.40 1.22 0.32 0.10 1.48 0.49
13-Jul-07 15.67 15272.7 9 -0.01 1.20 -0.10 0.01 1.43-
0.02
16-Jul-07 15.7 15311.2 10 0.20 0.25 0.12 0.01 0.06 0.05
17-Jul-07 15.67 15289.8 11 -0.16 -0.14 -0.25 0.06 0.02 0.02
18-Jul-07 15.68 15301.2 12 0.06 0.07 -0.03 0.00 0.01 0.00
19-Jul-07 15.71 15550.1 13 0.19 1.63 0.10 0.01 2.65 0.30
20-Jul-07 15.72 15565.6 14 0.07 0.10 -0.02 0.00 0.01 0.01
23-Jul-07 15.77 15732.2 15 0.33 1.07 0.25 0.06 1.15 0.36
24-Jul-07 15.78 15794.9 16 0.01 0.40 -0.08 0.01 0.16 0.00
25-Jul-07 15.74 15699.3 17 -0.25 -0.61 -0.34 0.11 0.37 0.15
26-Jul-07 15.74 15776.3 18 0.05 0.49 -0.04 0.00 0.24 0.02
27-Jul-07 15.68 15234.6 19 -0.37 -3.43 -0.46 0.21 11.79 1.28
30-Jul-07 15.69 15260.9 20 0.03 0.17 -0.05 0.00 0.03 0.01
31-Jul-07 15.76 15551 21 0.45 1.90 0.37 0.13 3.61 0.86
Average 0.08 Variance 0.05 Sum
Sum 1.78 6.00 Risk 0.23 25.47 4.20
48
Returns of HDFC Monthly Income Plan long term plan growth option for themonth of july-07
Risk free Rate 0.06
n*sum x y 88.12
Sum x 6.00
Sum y 1.78
n*sumx^2 534.97
Sumx^2 648.96
8/2/2019 Performance of Different Schemes in Mutual Funds
64/98
Beta -0.68
Returns 0.08
Risk 0.23
Shrpes 0.11
Treynor -0.04
Graph:7Graphical Representation of HDFC Monthly Income Plan Long Term Plan Growth option
and Bse Returns for the Month of July-07
Graphical Representationforthe HDFCMonthly
IncomePlanLongTermPlanGrowthOption&
BSEReturns
-4.000
-3.000
-2.000
-1.000
0.000
1.000
2.000
3.000
1 3 5 7 9 11 13 15 17 19 21
Time
Ret Returns(y)
Returns(x)
The Returns generated by HDFC Monthly Income Plan-Long Term Plan-Growth option for
the Month of July are not much affected by change in market situation, as the Beta is -0.68
which is less than the market value of Beta; the fund is not an aggressive fund. It generated
returns 0.11.It has the Sharpe ratio giving a risk Premium of 0.23 for every unit of StandardDeviation Risk.
It has the Trynors ratio generating -0.04 returns above the risk free rate of return for every
unit of Systematic risk.
49
Table:8 Calculation of Risk of HDFC Monthly Income Plan Long termPlan-Growth option for the month of August-07
8/2/2019 Performance of Different Schemes in Mutual Funds
65/98
50
Returns of HDFC Monthly Income Plan long term plan growth option for themonth of August-07
Risk free Rate 0.06
n*sum x y 397.52
Date
NetAssetValue
Closingprice S. No.
Returns(y) Returns(x)
Returns-Mean
(Returns-Mean)^2 x^2 x*
1-Aug-07 15.64 14935.8 1 -0.76 -3.96 -0.77 0.59 15.65 3
2-Aug-07 15.7 14985.7 2 0.41 0.33 0.40 0.16 0.11 0
3-Aug-07 15.75 15138.4 3 0.30 1.02 0.29 0.08 1.04 0
6-Aug-07 15.73 14903 4 -0.15 -1.55 -0.16 0.03 2.42 0
7-Aug-07 15.74 14932.8 5 0.10 0.20 0.09 0.01 0.04 0
8-Aug-07 15.78 15308 6 0.27 2.51 0.27 0.07 6.31 0
9-Aug-07 15.68 15100.2 7 -0.64 -1.36 -0.65 0.42 1.84 0
10-Aug-07 15.64 14868.3 8 -0.28 -1.54 -0.29 0.08 2.36 0
13-Aug-07 15.68 15017.2 9 0.23 1.00 0.22 0.05 1.00 0
14-Aug-07 15.68 15000.9 10 0.05 -0.11 0.04 0.00 0.01 -0
16-Aug-07 15.56 14358.2 11 -0.81 -4.28 -0.81 0.66 18.36 3
17-Aug-07 15.5 14141.5 12 -0.36 -1.51 -0.37 0.13 2.28 0
20-Aug-07 15.59 14427.6 13 0.54 2.02 0.53 0.29 4.09 1
21-Aug-07 15.45 13989.1 14 -0.84 -3.04 -0.85 0.72 9.23 2
22-Aug-07 15.5 14248.7 15 0.27 1.86 0.26 0.07 3.44 0
23-Aug-07 15.46 14164 16 -0.25 -0.59 -0.26 0.07 0.35 0
24-Aug-07 15.51 14424.9 17 0.34 1.84 0.33 0.11 3.39 0
27-Aug-07 15.62 14842.4 18 0.74 2.89 0.73 0.54 8.38 2
28-Aug-07 15.65 14919.2 19 0.19 0.52 0.18 0.03 0.27 0
29-Aug-07 15.65 14993 20 -0.04 0.50 -0.05 0.00 0.25 -0
30-Aug-07 15.69 15121.7 21 0.29 0.86 0.28 0.08 0.74 0
31-Aug-07 15.78 15318.6 22 0.59 1.30 0.58 0.34 1.69 0
Average 0.01 Variance 0.21 Sum
Sum 0.17 -1.09 Risk 0.45 83.26 18
8/2/2019 Performance of Different Schemes in Mutual Funds
66/98
Sum x -1.09
Sum y 0.17
n*sumx^2 1831.70
sumx^2 6932.05
Beta -0.08
Returns 0.01
Risk 0.45
Shrpes -0.12
Treynor 0.67
Graph:8
Graphical Representation of HDFC Monthly Income Plan Long Term Plan Growth option
and Bse Returns for the Month of August-07
Graphical Representationforthe HDFCMonthly
IncomePlanLongTermPlanGrowthOption&
BSEReturns
-5.00
-4.00
-3.00
-2.00
-1.00
0.00
1.00
2.00
3.00
4.00
1 3 5 7 9 11 13 15 17 19 21
Time
Ret
Returns(y)
Returns(x)
It has the Sharpe ratio giving a risk Premium of 0.45 for every unit of Standard Deviation
Risk.It has the Trynors ratio generating 0.67 returns above the risk free rate of return for every
unit of Systematic risk.
The Returns generated by HDFC Monthly Income Plan-Long Term Plan-Growth option for
the Month of August are not much affected by change in market surroundings, as the Beta is -0.0
which is less than the market value of Beta; the fund is not an aggressive fund. It generated retur
-0.12.
51
Table-9 Calculation of Risk of HDFC Monthly Income Plan Long term Plan-Growthoption for the month of Sepetember-07
8/2/2019 Performance of Different Schemes in Mutual Funds
67/98
Date
NetAssetValue
Closingprice S. No.
Returns(y) Returns(x)
Returns-Mean
(Returns-Mean)^2 x^2 x*y
3-Sep-07 15.82 15422.1 1 0.22 0.68 0.11 0.01 0.46 0.15
4-Sep-07 15.82 15465.4 2 0.02 0.28 -0.09 0.01 0.08 0.01
5-Sep-07 15.82 15446.2 3 -0.02 -0.12 -0.12 0.01 0.02 0.00
6-Sep-07 15.86 15616.3 4 0.24 1.10 0.14 0.02 1.21 0.26
7-Sep-07 15.86 15590.4 5 0.02 -0.17 -0.09 0.01 0.03 0.00
10-Sep-07 15.87 15596.8 6 0.06 0.04 -0.05 0.00 0.00 0.00
11-Sep-07 15.85 15542.8 7 -0.10 -0.35 -0.20 0.04 0.12 0.03
12-Sep-07 15.84 15505.4 8 -0.05 -0.24 -0.16 0.02 0.06 0.01
13-Sep-07 15.86 15614.4 9 0.08 0.70 -0.03 0.00 0.49 0.0614-Sep-07 15.82 15603.8 10 -0.21 -0.07 -0.32 0.10 0.00 0.01
17-Sep-07 15.81 15504.4 11 -0.06 -0.64 -0.16 0.03 0.41 0.04
18-Sep-07 15.86 15669.1 12 0.31 1.06 0.21 0.04 1.13 0.33
19-Sep-07 15.94 16322.8 13 0.48 4.17 0.38 0.14 17.40 2.02
20-Sep-07 15.94 16348 14 -0.02 0.15 -0.12 0.02 0.02 0.00
21-Sep-07 15.96 16564.2 15 0.13 1.32 0.03 0.00 1.75 0.17
24-Sep-07 15.98 16845.8 16 0.17 1.70 0.06 0.00 2.89 0.29
25-Sep-07 15.99 16899.5 17 0.05 0.32 -0.06 0.00 0.10 0.01
26-Sep-07 16.02 16921.4 18 0.17 0.13 0.06 0.00 0.02 0.02
27-Sep-07 16.05 17150.6 19 0.19 1.35 0.09 0.01 1.83 0.26
28-Sep-07 16.11 17291.1 20 0.41 0.82 0.31 0.10 0.67 0.34
Average 0.10 Variance 0.03 Sum
Sum 2.08 12.93 Risk 0.17 28.69 4.01
52
Returns of HDFC Monthly Income Plan long term plan growth option for themonth of Sepetember-07
Risk free Rate 0.06
n*sum x y 80.18
8/2/2019 Performance of Different Schemes in Mutual Funds
68/98
Sum x 12.93
Sum y 2.08
n*sumx^2 573.88
sumx^2 823.35
Beta -0.21
Returns 0.10
Risk 0.17
Shrpes 0.26
Treynor -0.21
Graph-9Graphical Representation of HDFC Monthly Income Plan Long Term Plan Growth option
and Bse Returns for the Month of September-07Graphical Representationforthe HDFCMonthly
IncomePlanLongTermPlanGrowthOption&
BSEReturns
-1.00
0.00
1.00
2.00
3.00
4.00
5.00
1 3 5 7 9 11 13 15 17 19
Time
Re Returns(y)
Returns(x)
It has the Trynors ratio generating -0.21 returns above the risk free rate of return for every
unit of Systematic risk.
It has the Sharpe ratio giving a risk Premium of 0.17 for every unit of Standard Deviation
Risk.
The Returns generated by HDFC Monthly Income Plan-Long Term Plan-Growth option for
the Month of September are not much affected by change in market conditions, as the Beta is -0.
which is less than the market value of Beta; the fund is not an antagonistic fund. It generated
returns 0.26.
53
Table-10 Calculation of Risk of HDFC Monthly Income Plan Long term Plan-Growthoption for the month of October-07
8/2/2019 Performance of Different Schemes in Mutual Funds
69/98
Date
NetAssetValue
Closingprice S. No.
Returns(y) Returns(x)
Returns-Mean
(Returns-Mean)^2 x^2 x*
1-Oct-07 16.15 17328.6 1 0.21 0.22 0.04 0.00 0.05 0.
3-Oct-07 16.19 17847 2 0.23 2.99 0.06 0.00 8.95 0.4-Oct-07 16.14 17777.1 3 -0.28 -0.39 -0.46 0.21 0.15 0.
5-Oct-07 16.16 17773.4 4 0.15 -0.02 -0.03 0.00 0.00 0.
8-Oct-07 16.07 17491.4 5 -0.55 -1.59 -0.73 0.53 2.52 0.
9-Oct-07 16.14 18280.2 6 0.38 4.51 0.21 0.04 20.34 1.
10-Oct-07 16.17 18658.3 7 0.18 2.07 0.01 0.00 4.28 0.
11-Oct-07 16.22 18814.1 8 0.34 0.84 0.16 0.03 0.70 0.
12-Oct-07 16.17 18419 9 -0.30 -2.10 -0.47 0.23 4.41 0.
15-Oct-07 16.28 19058.7 10 0.69 3.47 0.52 0.27 12.06 2.
16-Oct-07 16.32 19051.9 11 0.21 -0.04 0.04 0.00 0.00 -0.
17-Oct-07 16.26 18715.8 12 -0.36 -1.76 -0.53 0.28 3.11 0.
18-Oct-07 16.18 17998.4 13 -0.47 -3.83 -0.65 0.42 14.69 1.
19-Oct-07 16.1 17560 14 -0.54 -2.44 -0.71 0.51 5.93 1.
22-Oct-07 16.14 17614 15 0.29 0.31 0.11 0.01 0.09 0.
23-Oct-07 16.3 18492.8 16 0.98 4.99 0.80 0.64 24.90 4.
24-Oct-07 16.43 18512.9 17 0.78 0.11 0.61 0.37 0.01 0.
25-Oct-07 16.49 18770.9 18 0.41 1.39 0.23 0.05 1.94 0.
26-Oct-07 16.57 19243.2 19 0.49 2.52 0.32 0.10 6.33 1.
29-Oct-07 16.66 19977.7 20 0.52 3.82 0.34 0.12 14.57 1.