DOC

1

SR. NO CONTENTS

PG. NO.

1.

2.

3.

4

5.

6.

7.

CONCEPTUAL OVERVIEW:

RESEARCH METHODOLOGY:

2.1 Objectives

2.2 Methodology

2.3 Significance

2.4 Limitations

THEORETICAL BACKGROUND:3.1 Mutual Fund

3.2 History of Mutual Fund

3.3 Types of Mutual Fund

CASE STUDY

DATA ANALYSIS

FINDINGS

REFRENCES

5

8

8

8

9

11

13

16

22

43

64

70

Get more projects at MBAeNotes

http://www.enotesmba.blogspot.com/

2


CHAPTER 1

CONCEPTUAL OVERVIEW


3

CONCEPTUAL OVERVIEW

1. BASICS OF MUTUAL FUND

A mutual fund is a financial intermediary that allows a group of investors to pool

their money together with a predetermined investment objective. The mutual fund

will have a fund manager who is responsible for investing the gathered money into

specific securities (stocks or bonds). When investors invest in a mutual fund, they are

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

holder of the fund.

Mutual funds are considered as one of the best available investments as compare to

others they are very cost efficient and also easy to invest in, thus by pooling money

together in a mutual fund, investors can purchase stocks or bonds with much lower

trading costs than if they tried to do it on their own. But the biggest advantage to

mutual funds is diversification, by minimizing risk & maximizing returns.

Mutual funds are set up to buy many stocks. Beyond that, investors can diversify

even more by purchasing different kinds of stocks which helps to spreading out

investors’ money across different types of investments and hence, reduces risk

tremendously up to certain extent.

It could take you weeks to buy all these investments, but if you purchased a few

mutual funds you could be done in a few hours because mutual funds automatically

diversify in a predetermined category of investments.



4


CHAPTER 2

RESEARCH METHODOLOGY


5

2.1) OBJECTIVES:

Objective of this study is to analyze the Past Performance of the various Mutual

Funds Schemes on the Basis of there Historical NAV’s and application of statistical

tools on the same. This helps in understanding the performance of mutual fund

schemes in terms of both risk as well as return involved.

2.2 METHODOLOGY:

A Sample of 5Schemes each from 5different types of Funds is being taken.

Types of Funds taken are follows:

Diversified funds

Large cap funds

Mid cap funds

Small cap funds

Sector funds

Analysis has been done by using following Statistical tools:

Sharpe Ratio: It indicates the Risk-Return Performance of Portfolio.

Beta: It measures the volatility, or systematic risk, of a security or a portfolio

in comparison to the market as a whole.

Standard Deviation: It shows the historical volatility.

Annualized Return: It indicate the return on return over the period of times.

2.3 SIGNIFICANCE:

Able to learn the various analytical tools of Mutual Fund like Beta, Standard

Deviation, Compounded annual growth rate (CAGR) and Sharp Ratio.

Get complete overview of Mutual Fund industries in India.

Able to know the past performance of various Mutual Funds Schemes.

Investors are able to know the investment pattern and market trend of

investing in various sectors.



6

2.4 LIMITATIONS:

Samples sizes is limited factor, only last fives years of Data has been taken.

Past performance may not guarantee the future return.

Micro level data have been taken in analysis; Macro level data may affect the

returns.



7

3.1 Mutual Fund:


CHAPTER 3

THEORETICAL BACKGROUND


8

A Mutual Fund is kinds of trust that pools the savings of a number of investors,

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 appreciation

realized is 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.

3.1.1 Advantages of Mutual Fund:

a) Professional Management - The basic advantage of funds is that, they are

professionally managed by well qualified professional. Investors purchase funds

because they do not have the time or the expertise to manage their own portfolio.

b) Diversification - Purchasing units in a mutual fund instead of buying individual

stocks or bonds, the investors risk is spread out and minimized up to certain extent.

The idea behind diversification is to invest in a large number of assets so that a loss

in any particular investment is minimized by gains in others.

c) Economies of Scale - Mutual fund buy and sell large amounts of securities at a

time, thus help to reducing transaction costs, and help to bring down the average cost

of the unit for their investors.

d)Liquidity - Just like an individual stock, mutual fund also allows investors to

liquidate their holdings as and when they want.



9

e) Simplicity - Investments in mutual fund is considered to be easy, compare to other

available instruments in the market, and the minimum investment is small. Most

AMC also have automatic purchase plans whereby as little as Rs. 2000, where SIP

start with just Rs.50 per month basis.

3.1.2 Disadvantages of Mutual Fund:

a) Professional Management- Some funds don’t perform according to the market,

as their management is not dynamic enough to explore the available opportunity in

the market, thus investor loose there money.

b) Costs – The biggest source of AMC income is generally from the entry & exit

load which they charge from investors, at the time of purchase. The mutual fund

industries are thus charging extra cost under layers of jargon.

c) Dilution - Because funds have small holdings across different companies, high

returns 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.

d) 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 more advantageous for the individual to defer the capital

gains liability



10

3.2 History of Mutual Fund in India:

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 of India. 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’s

Second Phase –1987-93(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). SBI Mutual Fund was the first non- UTI Mutual Fund

established in June 1987 followed by Can bank 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.

Third Phase- 1993-2003(Entry of Private sector funds):



11

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 Regulation

The second is the UTI Mutual Fund, 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 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



12

place among different private sector funds, the mutual fund industry has entered its

current phase of consolidation and growth.

A graph indicates the growth of assets over the years.

3.3 Types of Mutual Funds Schemes:

3.3.1 ON THE BASIS OF STRUCTURE:



13

a) Open - Ended Schemes:

An open-end fund is one that is available for subscription throughout the year.

These do not have a fixed maturity. Investors can conveniently buy and sell units

at Net Asset Value ("NAV") related prices. The key feature of open-end

schemes is liquidity, where you can buy and sell the mutual fund unit at any

time.

b) Close - Ended Schemes:

These schemes have a pre-specified maturity period. One can invest directly in

the scheme at the time of the initial issue. Depending on the structure of the

scheme there are two exit options available to an investor after the initial offer

period closes. First, the Investors can transact (buy or sell) the units of the

scheme on the stock exchanges where they are listed. Second, some close-ended

schemes provide an additional option of selling the units directly to the Mutual

Fund through periodic repurchase at the schemes NAV. SEBI Regulations

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

c) Interval Schemes:

Interval Schemes are that scheme, which combines the features of open-ended

and close-ended schemes. The units may be traded on the stock exchange or may

be open for sale or redemption during pre-determined intervals at NAV related

prices.

3.3.2 ON THE BASIS OF NATURE:



14

a) Equity fund:

These funds invest a maximum part of their Principal amount into equities

holdings. The structure of the fund may vary different for different schemes

and the fund manager’s outlook on different stocks. Equity investments are

meant for a longer term, thus Equity funds rank high on the risk-return

matrix.

b) Debt funds:

The objective of these Funds is to invest in debt papers. Government

authorities, private companies, banks and financial institutions are some of

the major issuers of debt papers. By investing in debt instruments, these

funds ensure low risk and provide stable income to the investors.

c) Balance fund:

They are a mix of both equity and debt funds. They invest in both equities and

fixed income securities, which are in line with pre-defined investment objective

of the scheme. These schemes aim to provide investors with the best of both the

Funds. Equity part provides growth and the debt part provides stability in

returns.



15

3.3.3 ON THE BASIS OF INVESTMENT OBJECTIVE:

a) Growth Schemes:

These Schemes are also known as equity schemes. The aim of these schemes

is to provide capital appreciation over medium to long term. These schemes

normally invest a major part of their fund in equities and are willing to bear

short-term decline in value for possible future appreciation

b) Income Schemes:

These are also known as debt schemes. The aim of these schemes is to

provide regular and steady income to investors. These schemes generally

invest in fixed income securities such as bonds and corporate debentures.

Capital appreciation in such schemes may be limited

c) Money Market Schemes:

These Schemes aim 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.



16

3.3.4 Types of Funds taken for analysis:

a) Large Cap Funds:

These are those types of Funds which invest their money in large Blue chip

Companies, having with a market capitalization of more than Rs 1000 crores.

Investing in large cap is a low risk-return preposition because such funds are

widely research and information available.

One of the advantage of large cap funds are that they are less volatile than

mid cap and small cap funds because investors are investing in this types of

fund for a long term prospective and help to keep these fund away from the

volatility of the markets.

Top Performer under this category:

1) HDFC Top 200: It’s Compounded Annualized Returns of last 5

years is 24.5%.

2) Reliance Large Cap Fund: It’s Compounded Annualized Returns

of last 5 years is 22.6%.

3) Franklin India Blue Chip: It’s Compounded Annualized Returns


4) Kotak 30: It’s Compounded Annualized Returns of last 5 years is

19%.

5) DSPML Top 100 Equity: It’s Returns of last year is 18.4%.

b) Mid Cap Funds:

This types of Funds invest their money in mid sizes companies. Companies

having market Capitalization between the Rs 500crores to Rs 1000 crores are

come under the mid cap companies. Mid Cap Funds are very volatile and

tends to fall if the market is fall in bad times. But this gives good return in



17

short term.

Top Performer under this category:

1) IDFC Premier equity fund: It’s Compounded Annualized Returns


2)Sundaram select mind cap fund (G): It’s Compounded

Annualized Returns of last 5 years is 24.8%.

3) Reliance Growth: It’s Compounded Annualized Returns of last 5

years is 23%.

4) Birla Sun life mid cap fund: It’s Compounded Annualized

Returns of last 5 years is 21.9%.

5) L&T mid cap fund: It’s Compounded Annualized Returns of last

5 years is 17%.

c) Small Cap Funds:

These types of Funds are investing their money in Small size companies.

Companies having market capitalization up to Rs 500 crores come under the

categories of Small Cap companies. Small Cap Funds are more volatile than

Mid Cap & Large Cap Funds. It’s Risk-Return Matrix are very high.

Top performer under this category:

1) L&T Small cap fund:

2) JP Morgan India smaller companies fund(G)

3) HSBC Small cap fund

4) Sundaram select small cap fund (G):

d) Sector Funds:

These types of Funds are investing their money in particular sector of the



18

economy. Such as infrastructure, Banking, Retail, FMCG, ect. These Funds

are more volatile than Diversified funds having stocks of many sectors. These

Funds are high risk -reward category. These types of Funds are only for the

short term investors, who are able to take high risk ability.

Top Performer funds under this category:

1) Reliance Diversified Power sector fund (G): It’s Compounded


2) Reliance Banking fund (G): It’s Compounded Annualized


3) Reliance Pharma (G): It’s Compounded Annualized Returns of

last 5 years is 25.4%.

4) ICICI Prudential infrastructure fund (G): It’s Compounded


5) UTI Banking sector fund (G): It’s Compounded Annualized




19

e) Diversified funds:

These are a kind of funds which invest there most of there money in different

sectors like FMCG, Infrastructure, Pharma, ect. This helps to Diversified

there Risk into various sectors. If one sector is going down then other sector

may compensate the loss. These types of funds give consistent return without

much volatility in long term.

Top Performer Funds under this category:

1) IDFC Premium Equity fund-planA (G): It’s Compounded


2) Reliance regular saving fund-Equity growth: It’s Compounded

Annualized Returns of last 5 years is 26% return.

3) HDFC Top 200- Growth: It’s Compounded Annualized Returns


4) HDFC Equity fund (G): It’s Compounded Annualized Returns of

last 5 years is 21.3%.

5) Birlasunlife frontline Equity fund: It’s Compounded Annualized




20



21

4.1 RELIANCE MUTUAL FUND:

Reliance Mutual Fund is India’s leading Mutual Fund with Quarter Average Assets

under management (AAUM) of Rs 102066Crores.

Reliance Mutual Fund, a part of the Reliance - Anil Dhirubhai Ambani Group, is one

of the fastest growing mutual funds in the country. RMF offers investors a well-

rounded portfolio of products to meet varying investor requirements and has

presence in 159 cities across the country. Reliance Mutual Fund constantly

endeavors to launch innovative products and customer service initiatives to increase

value to investors. "Reliance Mutual Fund schemes are managed by Reliance Capital

Asset Management Limited., a subsidiary of Reliance Capital Limited, which holds

93.37% of the paid-up capital of RCAM.

The schemes that I have taken for analysis from Reliance Mutual Fund are:

4.1.1 RELIANCE BANKING FUND (G) [under Sector Fund]: The primary

investment objective of the Scheme is to seek to generate continuous returns by

actively investing in equity and equity related or fixed income securities of

companies in the Banking Sector.

Fund overview:

Fund Types- Open Ended

Investment Plan- Growth

Assets sizes- Rs1466 Crores

Launches date- May21, 2003

Benchmark- Bank Nifty

Fund Manager- Mr. Sunil Singhania



22

4.1.2 RELIANCE MEDIA & ENTERTAINMENT FUND(G) [under Sector

Fund]: The primary investment objective of the Scheme is to generate consistent

returns by investing in equity / equity related or fixed income securities of media

& entertainment and other associated companies.

Fund overview:


Investment Plain- Growth

Assets sizes- Rs112.05 crores

Launch date- Sep 27, 2007

Benchmark- NA

Fund Manager- Mr. Sailesh Raj Bhan

4.1.3 RELIANCE VISION (G) [under large cap fund]: Seeks to provide long term

capital appreciation by primarily investing in growth oriented stocks.

Fund overview:



Assets Sizes- Rs 61crores

Launch date- Aug’8, 2007

Bench mark- BSE 100

Fund Manager- Mr. Ashwani Kumar



23

4.2 UTI MUTUAL FUND :

UTI Mutual Fund was started in 14, January 2003 by UTI Trustee Co, Pvt. Ltd. for

managing the schemes of UTI Mutual Fund. UTIAMC provides professionally

managed back office support for all business services of UTI Mutual Fund in

accordance with the provisions of the Investment Management Agreement, the Trust

Deed, the SEBI Regulations and the objectives of the schemes.

Since February 3, 2004, UTIAMC is also a registered portfolio manager under the

SEBI for undertaking portfolio management services. UTIAMC also acts as the

manager and marketer to offshore funds through its 100 % subsidiary, UTI

International Limited, registered in Guernsey, Channel Islands.

UTIAMC presently manages a capital of over Rs. 65, 38,724.42 lakhs as on 31st

December 2010. UTI Mutual Fund has a track record of managing a variety of

schemes catering to the needs of every class of citizens. It has a nationwide network

consisting 148 UTI Financial Centers (UFCs) and UTI International offices in

London, Dubai and Bahrain.

UTIAMC has a well-qualified, professional fund management team, which has been

fully empowered to manage funds with greater efficiency and accountability in the

sole interest of the unit holders.

UTIMF has consistently reset and upgraded transparency standards. All the

branches, UFCs and registrar offices are connected on a robust IT network to ensure

cost-effective quick and efficient service.

The schemes that I have taken for analysis from UTI Mutual Fund are:

4.2.1 UTI INFRASTRUCTURE FUND(G) [under Sector Fund] : Investment

Objective is capital appreciation by investing in the companies engaged in the

sectors like Metals, Real Estate, Oil ; Gas, Power, Chemicals, Engineering etc.



24

Fund overview:




Launch date- Apr7, 2004

Bench mark- BSE 100

Fund Manager- Mr. Sanjay Dongre

4.2.2 UTI LARGE EQUITY FUND (G) [under large cap Fund]: The Scheme is

designed specifically for large corporate investors and as well as high net worthy

investors who would like to invest large amount in exclusive Scheme which allows

entry and exit at NAV.

Fund overview:




Launch date- may18, 1992

Bench mark- BSE sensitive index

Fund Manager- Mr. Anoop Bhaskar



25

4.2.3 UTI MID CAP FUND [ under Mid cap fund]: It’s aims to provide to

investors growth of capital over a period of time by investing in mid cap stock ,as

well as to make periodical distribution of income from investment in stocks of

respective sectors of the Indian economy.

Fund overview:




Launch date- Apr 07, 2004

Bench mark- CNX mid cap

Fund Manager- Mr. Anoop Bhaskar



26

4.3 SBI MUTUAL FUND:

SBI Mutual Fund is India’s largest bank sponsored mutual fund and has a track

record in judicious investments and consistent wealth creation. The fund traces its

lineage to SBI - India’s largest banking enterprise. The institution has grown

immensely since its inception and today it is India's largest bank, patronized by over

80% of the top corporate houses of the country.

SBI Mutual Fund is a joint venture between the State Bank of India and Society

General Asset Management, one of the world’s leading fund management

companies that manages over US$ 500 Billion worldwide.

In twenty years of operation, the fund has launched 38 schemes and successfully

redeemed fifteen of them. In the process it has rewarded it's investors handsomely

with consistent returns.

A total of over 5.8 million investors have reposed their faith in the wealth generation

expertise of the Mutual Fund.

Today, the fund manages over Rs. 42,100 crores of assets and has a diverse profile of

investors actively parking their investments across 38 active schemes.

The fund serves this vast family of investors by reaching out to them through

network of over 130 points of acceptance, 29 investor service centers, 59 investor

service desks and 6 Investor Service Points.

SBI Mutual is the first bank-sponsored fund to launch an offshore fund – Resurgent

India Opportunities Fund.

The schemes that I have taken for analysis from SBI Mutual Fund are:



27

4.3.1SBI MAGNUM SECTOR UMBRELLA-PHARMA (G) [under sector Fund]:

It provides the investor’s maximum growth opportunity through equity investments

in stocks of growth oriented sector called Pharma in long run.

Fund overview:



Assets Sizes- Rs 39.69 crores

Launch date- JUL 14, 1999

Bench mark- BSE health care

Fund Manager- Mr. Sohini Andani

4.3.2 SBI MAGNAM EQUITY FUND (G)[ under large cap Fund]: To provide

investors long term capital appreciation along with the liquidity of an open-ended

scheme. The scheme will invest in a diversified portfolio of equities of high growth

companies.

Fund overview:



Assets Sizes- Rs 469 crores

Launch date- jan 1, 1991

Bench mark- BSE 100

Fund Manager- Mr. R Srinivasan



28

4.3.3 SBI MAGNUM MID CAP FUND [under mid cap Fund]: To provide

investors with opportunities for long term growth in capital along with the liquidity

of an open ended scheme by investing predominantly in a well diversified basket of

equity stocks of companies and in debt and money market instruments.

Fund overview:




Launch date- Mar 17.2005

Bench mark- CNX MID CAP

Fund Manager- Mr. Sohini Andani



29

4.4 FRANKLIN TEMPLETION MUTUAL FUND :

Franklin Templeton Investments is one of the largest financial services groups in the

world based at San Mateo, California USA. The group has US$ 642.3 billion in

assets under management globally.

Franklin Templeton has offices in 33 locations across India and manages average

AUM of Rs. 42142.21 crores for over 22 lakhs investors (as on September 30, 2010).

The schemes that I have taken for analysis from FRANKLIN TEMPLETION Mutual

Fund are:

4.4.1 FRANKLIN TEMPLETION FMCG FUND [under Sector Fund]: The

scheme aims to achieve long term capital appreciation through exclusively investing

in shares of Fast Moving Consumer Goods Companies.

Fund overview:




Launch date- Mar 31.1999

Bench mark- NA

Fund Manager- Anil Prabhudas

4.5 JM FINANCIAL MUTUAL FUND:

It is one of India 's first private sector mutual funds-an integral part of the first wave

that commenced operations in 1993-94.It is a part of JM Financial Group , which has

a rich heritage, built over three decade.



30

Group's origins can be traced back to the 1950s when the Kampani family began to

get involved in India's then capital markets. JM Financial & Investment Consultancy

Services was founded on September 15, 1973.

JM Financial Asset Management Private Limited started operations in December

1994 with a simultaneous launch of three funds-JM Liquid Fund (now JM Income

Fund), JM Equity Fund and JM Balanced Fund. Today, JM Financial Mutual Fund

offers a bouquet of funds that caters to the diverse needs of both its institutional and

individual investors.

It’s mission is to manage risk effectively while generating top quartile returns across

all product categories. We believe that to cultivate investor loyalty, we must provide

a safe haven for their investments. We are focussed on helping our investors realize

their investment goals through prudent advice, judicious fund management, accurate

research, and strong systems of managing risk scientifically.

The schemes that I have taken for analysis from JM FINANCIAL Mutual Fund are:

4.5.1 JM LARGE CAP FUND (G) [under large cap Fund]: The Scheme aims to

provide long term capital appreciation from a portfolio that is invested

predominantly in equity and equity related instruments in the Healthcare sector.

Fund overview:



Assets Sizes- Rs5.1 crores

Launch date- Jun 9.2004

Bench mark- BSE Health care sector

Fund Manager- Mr. Sanjay Chhabaria



31

4.5.2 JM MID CAP FUND [under mid cap Fund]: The investment objective of the

Scheme is to provide capital appreciation by primarily investing in mid cap fund.

Fund overview:



Assets Sizes- Rs9.7 crores

Launch date- Jun 9.2004

Bench mark- BSE 500


4.5.3 JM SMALL & MID CAP FUND (G)[under small cap Fund]: The investment

objective of the Scheme is to provide capital appreciation by primarily investing in

small cap and mid-cap stocks.

Fund overview:




Launch date- Mar 9, 2007





32

4.6BIRLA SUNLIFE MUTUAL FUND:

Birla Sun Life Asset Management Company Ltd. (BSLAMC) is a joint venture

between the Aditya Birla Group and the Sun Life Financial Services Inc. of Canada.

The joint venture brings together the Aditya Birla Group's experience in the Indian

market and Sun Life's global experience.

Birla Sunlife Mutual Fund is established in 1994 .It offer a range of investment

options, including diversified and sector specific equity schemes, fund of fund

schemes, hybrid and monthly income funds, a wide range of debt and treasury

products and offshore funds. BSLAMC is one of the largest team of research

analysts in the industry, dedicated to tracking down the best companies to invest in.

BSLAMC strives to provide transparent, ethical and research-based investments and

wealth management services.

The schemes that I have taken for analysis from BIRLA SUNLIFE Mutual Fund

are:

4.6.1BIRLASUNLIFE ADVANTAGE FUND [under Large cap Fund]: To achieve

long-term growth of capital through investments mainly in equity and equity related

instruments.

Fund overview:




Launch date- Feb 24, 1995

Bench mark- BSE Sensitive index

Fund Manager- Mr. Ajay Argal



33

4.6.2BIRLASUNLIFE SMALL & MID CAP FUND [under small cap Fund]:

It objective is to generate consistent long-term capital appreciation by investing

predominantly in equity and equity related securities of companies considered to be

small and mid cap. It may also invest a certain portion of its corpus in fixed income

securities including money market instruments, in order to meet liquidity

requirements from time to time.

Fund overview




Launch date- Apr 9, 2007


Fund Manager- Mr. Ankit Sancheti



34

4.7 KOTAK MAHINDRA MUTUAL FUND:

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 Rs.7,911 crore and employs around 20,000 employees

across its various businesses, servicing around 7 million customer accounts through a

distribution network of 1,716 branches, franchisees and satellite offices across more

than 470 cities and towns in India and offices in New York, California, San

Francisco, London, Dubai, Mauritius and Singapore.

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

subsidiary of KMBL, is the Asset Manager for Kota Mahindra Mutual Fund

(KMMF). KMAMC started operations in December 1998 and has over 10 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.

The schemes that I have taken for analysis from KOTAK MAHINDRA Mutual

Fund are:

4.7.1 KOTAK MAHINDRA MID CAP FUND [under mid cap Fund]: The

investment objective of Kotak Midcap is to generate capital appreciation from a

diversified portfolio of equity & equity related securities. The scheme predominantly

invests in companies in the mid market capitalization segment across sectors. The

scheme is well positioned to provide the benefit of potential growth offered by mid

cap stocks which are likely to become tomorrows large caps.

Fund overview:



35




Launch date- jan 28, 2005

Bench mark- CNX Nifty junior

Fund Manager- Mr. Pankaj Tibrewal

4.7.2 KOTAK EQUITY FOF [under Diversified fund]: To generate long-term

capital appreciation from a portfolio created by investing predominantly in open-

ended diversified equity schemes of Mutual Funds registered with SEBI.

Fund overview:




Launch date- Aug 09, 2004

Bench mark- NA

Fund Manager- Mr. Sajit Pisharodi



36

4.8 SUNDARAM BNB PARIBAS MUTUAL FUND:

Sundaram Mutual, identifying an investment opportunity long before it manifests as

one, is the heart of our business belief.

Being in the financial sector for a long time has given us a great understanding of the

Indian economy and that guides us while picking the companies for its Funds. Once

it unearth a potential opportunity, it’s Financial Experts spend countless time to

research the companies, to see what will deliver the best returns for your money. Its

financial experts are fine tuned to the larger global picture and all its complexities as

well as the intricacies of the Indian market. We track global economic trends and

market behaviour to better understand the domestic markets. We are constantly on

the trail of promising opportunities and once identified, a new theme is thoroughly

researched and tested on various platforms before being offered to the investing

public.

The schemes that I have taken for analysis from SUNDARAM BNB PARIBAS

Mutual Fund are:

4.8.1 SUNDARAM SELECT MID CAP FUND (G) [under mid cap fund]:

Sundaram Select Mid Cap Fund is an open ended equity scheme that seeks capital

appreciation by investing in diversified stocks that are generally termed as mid -caps.

Fund overview:




Launch date- Jul 19, 2002

Bench mark- BSE Mid cap index

Fund Manager- Mr. Satish Ramanathan



37

4.8.2SUNDARAM BNB PARIBAS SELECT SMALL CAP FUND(G)[small cap

fund]: The primary investment objective of the scheme is to generate consistent

long-term returns by investing predominantly in equity/equity related instruments of

companies that can be termed as small cap.

Fund objective:




Launch date- Jan 24, 2006

Bench mark- BSE Small cap index

Fund Manager- Mr. Satish Ramanathan

4.8.3 SUNDARAM BNB PARIBAS GROWTH FUND (G)[under Diversified

fund]:

It seeks to achieve capital appreciation by investing in a well diversified basket of

equities and equity-related instruments. Income generation would be the secondary

consideration.

Fund Overview:



Assets Sizes- -

Launch date- -

Bench mark- -

Fund Manager- -



38

4.9 L & T MUTUAL FUND:

L&T Mutual Fund is one of the premier mutual funds in India that serves the

investment needs of investors through a suite of acclaimed mutual fund schemes.

With world class investment management practices and an equally competent fund

management team, L&T Mutual Fund helps its investors reach their financial goals.

Whether you are an individual investor, institution, or finance professional, you can

gain from the products and expertise that we offer.

L&T Mutual Fund is backed by one of the most trusted and valued brands, L&T

Finance – incorporated as Non Banking Finance Company in November 1994, has

earned the trust of thousands of investors by adapting well to the changing marketing

dynamics and emerging as a profitable venture despite the turbulences in the

Financial market over the past few years.

The schemes that I have taken for analysis from L & T Mutual Fund are:

4.9.1 L & T SMALL CAP FUND [under small cap fund]: The scheme seeks to

generate long term capital appreciation by investing predominantly in equity and

equity related instruments of companies with small cap.

Fund overview:




Launch date- Dec 20, 2007

Bench mark- BSE Small cap index

Fund Manager- Mr. Anant Deep Katre



39

4.10 TATA MUTUAL FUND:

Tata Mutual Fund has earned the trust of lakhs of investors with its consistent

performance and world-class service.

It manages around Rs20,854.00 crores (average AUM for the quarter of October-

December 2010) worth of assets across its varied offerings. Tata Mutual Fund offers

an investment option for everyone, whether you are a businessman or salaried

professional, a retired person or housewife, an aggressive investor or a conservative

capital builder.

The Tata Asset Management philosophy is centered on seeking consistent, long-term

results. Tata Asset Management aims at overall excellence, within the framework of

transparent and rigorous risk controls.

Tata Mutual Fund offers investors a broad range of managed investment products in

various asset classes and risk parameters, with operational flexibility to suit their

varied investment needs.

It offer a wide range of services to assist investors have a fulfilling and rewarding

financial planning experience with us. It have designed our services keeping in mind

the needs of our investors, giving them a smooth and hassle-free financial planning

process.

The schemes that I have taken for analysis from TATA Mutual Fund are:

1.10.1 TATA DIVIDENT YIELD FUND (G) [under Diversified fund]: To

Provide income distribution and / or medium to long term capital gains by investing

predominantly in high dividend yield stocks.

Fund overview:




Launch date- Oct 27, 2004



40

Bench mark- BSE Sensitive index

Fund Manager- Mr. Mahendra Jajoo / Sachin Relekar

4.11 HDFC MUTUAL FUND:

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 July

3, 2000.

In terms of the Investment Management Agreement, the Trustee has appointed the

HDFC Asset Management Company Limited to manage the Mutual Fund. The paid

up capital of the AMC is Rs. 25.161 crore. The AMC is managing 28 open-ended

schemes of the Mutual Fund some are HDFC Growth Fund, HDFC Equity Fund,



41

HDFC Top 200 Fund, HDFC Capital Builder Fund, HDFC Core & Satellite Fund,

HDFC Premier Multi-Cap Fund, and HDFC Index Fund.

The AMC is also managing 7 closed ended Schemes some are HDFC Long Term

Equity Fund, HDFC Infrastructure Fund, and HDFC Fixed Maturity Plans - Series

XI, HDFC Fixed Maturity Plans - Series XII.The AMC is also providing portfolio

management / advisory services.

The schemes that I have taken for analysis from HDFC MUTUAL FUND are:

4.11.1 HDFC TOP200 FUND [under Diversified fund]: It objective is to generate

long term capital appreciation by investing in a portfolio of equities and equity

linked instruments drawn from the BSE 200 Index.

Fund Overview:



Assets Sizes- Rs. 9425 crores

Launch date- Oct 27, 2004

Bench mark- BSE 200 index

Fund Manager- Mr. Prashant Jain

4.12 RELIGARE MUTUAL FUND:

Religare Mutual Fund is managed by Religare Asset Management Company

Limited, a subsidiary of Religare Securities Limited (RSL). The AMC was

incorporated on May 20, 2005 and the mutual fund was set up on July 24, 2006.

It manages Assets around Rs104 billion dollars. Religare Asset Management aims to

serve investment needs of individual investors, corporate and institutions through

mutual funds and sub-advised portfolios. Its product portfolio is managed by

individually focused management teams to create optimum balance and results. They

are committed to providing financial care and top class service. They subscribe to



42

sustainable business models and process that factor in the dynamism of the business

in fast changing market scenarios.

The schemes that I have taken for analysis from Religare Mutual Fund are:

4.12.1 RELIGARE SMALL &MID CAP FUND [under small cap fund]:

The Scheme seeks to provide long term capital appreciation by investing in a

portfolio that is predominantly constituted of equity and equity related

instruments of mid and small cap companies.

Fund overview:



Assets Sizes- Rs 22.4 crores

Launch date- Jan 7, 2008

Bench mark- NA

Fund Manager- Mr. Vinay Paharia



43

5.1 Diversified Funds:

1) CAGR

Yr/

Schemes

Tata

Dividend

yield

Kotak

Equity

FOF

Reliance

Diversified

Power

Sundaram

Balance

fund

HDFC

TOP200


CHAPTER 5

DATA ANALYSIS


44

Last 1 yrs 103.78 86.03 96 71.52 102.25

Last3 yrs 20.3 13.08 32.07 12.61 20.7

Last 5yrs 19.14 21.11 40.16 16.47 29.14

Tata divi-dend yield

Kotak Equity FOF

Reliance diversified

power

Sundaram balance

fund

HDFC TOP200

0

20

40

60

80

100

120

CAGR

last 1 yrslast3 yrslast 5yrs

Schemes

Perc

ent(

%)

INTERPRETATIONS:

a) In last 1yr HDFC, Tata and Reliance gave maximum return of 102.2%, 103.7%

and 96% respectively, Followed by Kotak and Sundaram by 86.03% and 71.5%

respectively.

b) In last 3 & 5 yrs, Reliance gave maximum return against its competitors.

2) Standard Deviation

Yrs/

Schemes

Tata

Dividend

yield

Kotak

Equity

FOF

Reliance

Diversified

power

Sundaram

Balance fund

HDFC

TOP200

Last 1 yrs 0.071419205 0.09292427 0.101266115 0.068953248 0.0932788



45

Last 3 yrs 0.099664831 0.09966483 0.111054683 0.082246954 0.0968572

Last 5yrs 0.087110732 0.11201375 0.09839249 0.085491183 0.0841035

Tata divident yield

Kotak Equity FOF


power

Sundaram balance fund

HDFC TOP200

0

0.02

0.04

0.06

0.08

0.1

0.12

STANDARD DEVIATION


Schemes

(in R

s)

INTERPRETATIONS:

a) As far as the Standard Deviation in last 1 yrs is concern, it is high in Reliance,

which is 0.1 and low in Sundaram (0.068).

b) In last 3years, again Reliance has high Standard Deviation about 0.011 followed

by Kotak and Tata by0.09 both.

c) But in last5 yrs, Kotak is highly volatile followed by Reliance and Tata.

3) Beta

Yrs/

Schemes

Tata

Dividend

yield

Kotak

Equity

FOF

Reliance

Diversified

Power

Sundaram

Balance fund

HDFC

TOP200

0.685522556 0.91563 3 0.970784506 0.839178531 0.889744



46

Last 1 yrs

Last 3 yrs 0.173402004 0.1508907 0.100171515 0.094652253 0.127550

Last 5yrs -0.01188823 0.1985720 0.970784506 0.120147547 0.167198

Tata divi-dent yield

Kotak Equity FOF


power

Sundaram balance

fund

HDFC TOP200-0.2

0

0.2

0.4

0.6

0.8

1

1.2

BETA


Schemes

(in R

s)

INTERPRETATIONS:

a) In last 1 yr Reliance has high Beta about 0.97 as compare to others.

b) In last 3 yrs all the funds are less volatile with Nifty, but in last 5 yrs Reliance has

high Beta of 0.97, so it has high volatility.

c) Tata dividend has low Beta in all the year.

4) Sharpe Ratio

Yrs/Schemes Tata

Dividend

yield

Kotak

Equity

FOF

Reliance

Diversified

power

Sundaram

Balance

fund

HDFC TOP200



47

Last 1 yrs 2.82288 1.92184 1.941195962 1.78291329 2.189613153

Last3 yrs 0.54053 0.36523 0.75575441 0.34489246 0.551588391

Last 5yrs 0.46532 0.68236 0.991355024 0.50778455 0.82590418

Tata divident yield

Kotak Equity FOF


power

Sundaram balance fund

HDFC TOP200

00.5

11.5

22.5

3

SHARPE RATIO


Schemes

(in R

s)

INTERPRETATIONS:

a) As far as last 1 yr is concern, Tata has highest Sharpe ratio (2.8), followed by

HDFC (2.1), Reliance (1.94), Kotak (1.92) and Sundaram (1.7) .

b) In last 3 yrs & 5 yrs, Reliance has highest Sharpe Ratio against its competitors.

c) Tata has low Beta in all the years.

5.2 Sector Fund

1) CAGR (in %)

Yr/Schemes Reliance Franklin UTI SBI Reliance



48

Banking(G) FMCG(G) infrastructure(G) magnum

Pharma(G)

Media&Ent(G)

Last1 yrs 120.55 68.57 66.77 112.96 18.94

Last3 yrs 30.21 17.52 10.89 3.61 2.07

Last 5yrs 25.37 21.73 23.23 12.31 88.77

Relian

ce ban

king(G

)

Frankli

n FMCG(G

)

UTI infra

structu

re(G)

SBI m

agnum Pharm

a(G)

Relian

ce Med

ia&En

t(G)

0

40

80

120

CAGR

last1 yrslast3 yrslast 5yrs

Schemes

Perc

enta

ge(%

)

INTERPRETATIONS:

a) In last1 years, Reliance Banking and SBI gave highest return of 120% and 112.9%

respectively against its competitors.

b) In last 3 years, Reliance Banking gave highest return of 30.2%. And In last 5 yr,

Reliance Media & Ent give maximum return of 88.7%.


Yr/Schemes Reliance

banking(G)

Franklin

FMCG(G)

UTI

infrastructure(G

SBI

magnum

Reliance

Media&Ent(G



49

) Pharma(G) )

Last1 yrs 0.128943375 0.05410278

5

0.094154994 0.09562679

7

0.107992407

Last3 yrs 0.115829428 0.06031861

2

0.104597968 0.10921267

9

0.118757826

Last 5yrs 0.102489584 0.06020592

2

0.09752141 0.09470864 0.104554454

Relian

ce ban

king(G

)

Frankli

n FMCG(G

)

UTI infra

structu

re(G)

SBI m

agnum Pharm

a(G)

Relian

ce Med

ia&En

t(G)

0

0.04

0.08

0.12

STANDARD DEVIATION


Schemes

(in R

s)

INTERPRETATIONS:

a) In all the three years is concern Reliance Banking has highest Standard Deviation,

so it is highly volatile as compare to its competitors.

b) Franklin FMCG is less volatile as compare to its competitors, so it is less Risky to

invest in this Fund.

3) Beta



50

Yr/

Schemes

Reliance

banking(G)

Franklin

FMCG(G)

UTI

infrastructure(G

)

SBI magnum

Pharma(G)

Reliance

Media&Ent(G)

Last1 yrs 1.23072293

1

0.16291949

6

0.914220081 0.85286803 1.031589083

Last3 yrs 0.21388727

7

0.05444464

5

0.096699523 0.130467228 0.231784503

Last 5yrs 0.24802596

1

0.09334030

7

0.145949941 0.168794462 0.26664004

Relian

ce ban

king(G

)

Frankli

n FMCG(G

)

UTI infra

structu

re(G)

SBI m

agnum Pharm

a(G)

Relian

ce Med

ia&En

t(G)

0

0.4

0.8

1.2

BETA


Schemes

(in R

s)

INTERPRETATIONS:

a) In last 1 yr, Reliance Banking has high Beta of 1.2, so it is highly volatile as

compare to its competitors.

b) Overall, Franklin FMCG is less volatile as compare to its competitors, so it is less

Risky to invest in this Fund.

4) Sharpe ratio



51

Yr/Schemes Reliance

banking(G)

Franklin

FMCG(G)

UTI

infrastructure(G

)

SBImagnum

Pharma(G)

Reliance

Media&Ent(G

)

Last1 yrs 1.867210636 2.6086068

3

1.550735632 1.919779766 1.738190637

Last3 yrs 0.701616713 0.5940665

9

0.296815592 0.125784902 -0.044702739

Last 5yrs 0.642094973 0.7668029

8

0.611539329 0.339000122 0.40984207

Relian

ce ban

king(G

)

Frankli

n FMCG(G

)

UTI infra

structu

re(G)

SBI m

agnum Pharm

a(G)

Relian

ce Med

ia&En

t(G)-0.5

00.5

11.5

22.5

3

SHARPE RATIO


Schemes

(in R

s)

INTERPRETATIONS:

a) In last 1 yr Franklin FMCG has highest Sharpe Ratio of 2.6 as compare to its

competitors, so it is good indicator for it.

b) In last 3 yrs Reliance Banking & Franklin FMCG has high Sharpe Ratio of 0.7

and 0.5respectively and Reliance Media & Ent. has lowest of -0.4.

c) In last 5 yrs, Franklin has highest Sharpe ratio of 0.7 and SBI has lowest of 0.3.



52

5.3 Large cap Funds

1) CAGR

Yrs/

Schemes

Reliance

vision

UTI

equity(G)

JM large

cap

Birlasunlife

adv fund

SBI magnum

eq

last 1 yrs 88.44 82.65 48.28 14.48 94.09

last 3 yrs 14.1 16.34 0.8 8.24 37.61

last 5 yrs 23.39 18.02 7.94 18.16 21.11

Relian

ce vis

ion

UTI eq

uity(G

)

JM la

rgecap

Birlasu

nlife ad

v fund

SBI m

agnum eq

020406080

100

CAGR

last 1 yrslast 3 yrslast 5 yrs

Schemes

Perc

enta

ge(%

)

INTERPRETATIONS:

a) In last 1 yr, CAGR of SBI, Reliance vision & UTI has high by94%, 88.4%, and

82.6% respectively, as compare to its competitors.

b) In last 3&5 yrs SBI gave highest return of about 37.6% &21.1% respectively.

c) Overall, Birlasunlife adv. Fund gave least return.



53


Yrs/

Schemes

Reliance

vision

UTI

equity(G)

JM large

cap

Birlasunlife

adv fund

SBI magnum

eq

Last 1 yrs 0.0999137

6

0.0744288 0.078338

3

0.115973242 0.097667168

Last 3 yrs 0.1001844

8

0.0833512 0.088863

8

0.112693896 0.105668883

Last 5 yrs 0.0886405

9

0.0780083 0.081352

2

0.096871642 0.095151301

Relian

ce vis

ion

UTI eq

uity(G

)

JM la

rgecap

Birlasu

nlife ad

v fund

SBI m

agnum eq

00.020.040.060.08

0.10.120.14

STANDARD DEVIATION


Schemes

Perc

enta

ge(%

)

INTERPRETATIONS:

a) In last 1, 3&5 years, Birlasunlife adv. fund has high Standard Deviation, so it is

highly volatile as compare to its competitors.

b) Overall, UTI equity is least volatile fund among its competitors, so it is better to

invest in such a less risky fund.



54

3) Beta

Yrs/

Schemes

Reliance

vision

UTI

equity(G)

JM large

cap

Birlasunlife

adv fund

SBI magnum

eq

Last 1 yrs 0.1724845

5

0.7078600 0.7575292 1.128608674 0.93092074

Last 3 yrs 0.1322957

2

0.1190345 0.0703577 0.165711517 0.139890907

Last 5 yrs 0.1724845

5

0.1607937 0.1049985 0.206156923 0.182037128

Relian

ce vis

ion

UTI eq

uity(G

)

JM la

rgecap

Birlasu

nlife ad

v fund

SBI m

agnum eq

00.20.40.60.8

11.2

BETA


Schemes

in(R

s)

INTERPRETATIONS:

a) In last 1 yr, Birlasunlife has a high Beta of 1.1 as compare to its competitors,

which shows high volatility.

b) In last 1yr, Reliance vision has low Beta (0.17)



55

c) JM large cap in last 3&5 yrs also has low Beta about 0.7 &0.1 respectively, so it is

less risky and safer to invest.

4) Sharpe Ratio

Yr/Schemes Reliance

vision

UTI

equity(G)

JM large cap Birlasunlife

adv fund

SBI magnum eq

Last 1 yrs 2.19417030

8

0.01409560 0.3844196 1.74102981

3

1.80743058

Last 3 yrs 0.37702979

2

0.46218302 -0.0158758 0.23701981

3

0.200605215

Last 5 yrs 0.64603402

7

0.5301262 0.2093977 0.48583637

8

0.53402252

Reliance vision

UTI equity(G) JM largecap Birlasunlife adv fund

SBI magnum eq-0.5

0

0.5

1

1.5

2

2.5

SHARPE RATIO


Scheme

Perc

enta

ge(%

)

INTERPRETATIONS:

a) In last 1 yr Reliance vision, SBI eq& Birlasunlife has high Sharpe Ratio about

2.1, 1.8 &1.7respectively, which shows good indicators.UTI has low which is.01.

b) In last 3&5 years, JM large cap has a less Sharpe ratio about -.01 &0.2

respectively, which shows its poor Performance.



56

5.4 Midcap Fund

1) CAGR

Yrs/

Schemes

JM midcap SBI magnum

mid cap

UTI

midcap

Kotak

midcap

Sundaram

select mid cap

Last1yrs 110 119.2 129.86 109.6 139.49

Last3 yrs 7.9 1.2 13.14 5.2 15.94

Last 5yrs 14.54 16.86 16.49 17.19 28.38

JM m

idcap

SBI m

agnum m

id cap

UTImidcap

Kotak m

idcap

Sundara

m selec

t mid ca

p0

4080

120160

CAGR

last1yrslast3 yrslast 5yrs

Schemes

(in R

s)

INTERPRETATIONS:

a) In last 1 yr, Sundaram midcap gave highest return about 139.4%, followed byUTI,

SBI and JM by 129.8%, 119%, and 110% respectively, and Kotak gave lowest retun

of 109.6%



57

b) In last 3&5 yrs, Sundaram gave highest return about 15.9% & 28.3% respectively.

And SBI gave lowest return.


Yrs/

Schemes

JM

midcap

SBI magnum

mid cap

UTI midcap Kotak

midcap

Sundaram

select mid cap

Last1yrs 0.1182776 0.156138896 0.1040285 0.1010611 0.150454556

Last3 yrs 0.1129622 0.144536727 0.1173093 0.1118037 0.130397639

Last 5yrs 0.102009 0.229935443 0.105609 0.09941857 0.109763284

JM midcap SBI magnum mid cap

UTImidcap Kotak midcap

Sundaram select mid

cap

0

0.05

0.1

0.15

0.2

0.25

STANDARD DEVIATION


Schemes

in (R

s)

INTERPRETATIONS:

a) In last 1 yr, Standard Deviation of SBI midcap has very high about 0.15which

shows high volatility. Followed by Sundaram about 0.11.



58

b) In last 3& 5yrs, alsoSBI shows high Standard Deviation about 0.14 & 0.22.

3) Beta

Yrs/

Schemes

JM midcap SBI magnum

mid cap

UTI

midcap

Kotak

midcap

Sundaram

select mid cap

Last1yrs 1.143846 1.512159602 0.998759 0.9419961 1.428028244

Last3 yrs 0.154830 0.187077319 0.157491 0.1782199 0.184278143

Last 5yrs 0.192531 0.229935443 0.207778 0.21723842 0.21284543

JM m

idcap

SBI m

agnum m

id cap

UTImidcap

Kotak m

idcap

Sundara

m selec

t mid ca

p0

0.40.81.21.6

BETA


Schemes

(in R

s)

INTERPRETATIONS:

a) In last 1 yr, Beta of SBI and Sundaram has high about 1.5 &1.4 respectively, as

compare to its competitors .UTI and Kotak shows low Beta about0.99 &0.94

respectively.



59

b) In last 3 & 5 years. All the Funds showed almost equal Beta.

4) Sharpe Ratio

Yrs/

Schemes

JM

midcap

SBI magnum

mid cap

UTI midcap Kotak

midcap

Sundaram select

mid cap

last1yrs 1.883957 1.590404948 2.3660246 2.1446380 1.81157006

last3 yrs 0.230390 0.143719771 0.3559378 0.1710649 0.115906618

last 5yrs 0.388877 0.435169362 0.437773 0.48133648 0.682191305

JM m

idcap

SBI m

agnum m

id cap

UTImidcap

Kotak m

idcap

Sundara

m selec

t mid ca

p0

0.51

1.52

2.5

SHARPE RATIO


Schemes

(in R

s)

INTERPRETATIONS:

a) In last 1year Sharpe Ratio of UTI is highest about 2.3 followed by

Kotak(2.1),JM(1.88),Sundaram(1.81) and SBI(1.5).

b) In last 3 years, UTI & JM shows highest Sharpe ratio about 0.35 & 0.23

respectively. SBI showed lowest about 0.14.



60

c) In last 5 years, Sundaram (0.68) shows highest Sharpe ratio and JM (0.38) shows

lowest.

5.5 Small cap Fund

1) CAGR

Yrs/

Schemes

Sundara

m small

cap

JM small

& mid cap

Birlasunlife

small&mid cap

L&T

small cap

Religare

small&mid

cap

Last 1yr 9.4 113.48 140.75 119.77 133.77

Last 3 yrs 6.51 -17.27 4.26 -14.99 7.36

Last 5 yrs

Sundaram smallcap

JM small & mid cap

Birlasunlife small&mid

cap

L&T small cap

Religare small&mid

cap-40-20

020406080

100120140160

CAGR

last 1yrlast 3 yrslast 5 yrs

Schemes

in(R

s)

INTERPRETATIONS:

a) In last 1 yr, Birlasunlife small midcap gave highest return about140.7% followed

by Religare small& midcap, L&T & JM about 133.7, 119.7%, and 113.4%

respectively.



61

b) In last 3 yr, Religare small cap give highest return about 7.3% against its

competitors.JM small cap gave -17%.


Yrs/

Schemes

Sundaram

small cap

JM small &

mid cap

Birlasunlife

small&mid

cap

L&T

small

cap

Religare

small&mid cap

Last1yr 0.052904985 0.14490943 0.119329293 0.102897 0.084923964

Last3 yrs 0.098308914 0.160988697 0.122212359 0.138513 0.11489531

Last5 yrs - - - - -

Sundaram smallcap

JM small & mid cap


cap

L&T small cap

Religare small&mid

cap

00.020.040.060.08

0.10.120.140.160.18

STANDARD DEVIATION


Schemes

(in R

s)

INTERPRETATIONS:



62

a) JM small cap Funds have high Standard deviation, which shows high volatility as

compare to its competitors.

b) Sundaram small cap shows least standard deviation, which shows its strength.

3) Beta

Yrs/

Schemes

Sundaram

small cap

JM small &

mid cap

Birlasunlife

small&mid

cap

L&T

small

cap

Religare

small&mid cap

Last 1yr 0.757755664 1.277975835 1.132571413 0.923006 0.791631306

Last3 yrs 0.156519161 0.233322213 0.179818858 0.491886 0.442382937

Last5 yrs - - - - -

Sundaram smallcap

JM small & mid cap


cap

L&T small cap

Religare small&mid

cap

00.20.40.60.8

11.21.4

BETA


Schemes

in(R

s)

INTERPRETATIONS:



63

a) In last 1 yr, there is high Beta in JM small&mid cap (1.2) and low in Sundaram

small cap(0.7)

b) In last 3 yrs,L&T and Religare shown high Beta about 0.49&0.44. Sundaram has

low Beta about 0.15.

4) Sharpe Ratio

Yrs/

Schemes

Sundaram

small cap

JM small &

mid cap

Birlasunlife

small&mid

cap

L&Tsmall

cap

Religare

small&mid

cap

Last 1yr 0.740297547 1.624960177 2.216180638 2.258105041 2.902924217

Last 3 yrs -0.52788846 -0.16756146 0.165643299 -0.32554 0.323392115

Last 5 yrs - - - - -

Sundaram smallcap

JM small & mid cap


cap

L&T small cap

Religare small&mid

cap-1-0.5

00.5

11.5

22.5

33.5

SHARPE RATIO


Schemes

(in R

s)

INTERPRETATIONS:



64

a) In last 1 yr, Religare small& midcap shows highest Sharpe ratio of 2.9 against its

competitors, whereas Sundaram shows lowest, which is0.74.

b) In last 3 yrs,again Religare shows high Sharpe ratio of 0.32 and low in Sundaram

about -.052.


CHAPTER 6

FINDINGS


65

6. Performance Sheets: Basis on Compounded annual growth rate (CAGR)

6.1.1Performance Sheet (Diversified Funds)

Fig (in %)

Schemes CAGR

(1yrs)

CAGR

(3yrs)

CAGR

(5yrs)

Rank1 yr Rank 2yrs Rank 3yrs

1.Tata dev 100 20.3 19.14 2 3 4

2.Kotak eq 86.03 13.08 21.11 4 4 3

3.Reliance

diversified

100 32.07 40.16 3 1 1

4.Sundaram Bal 71.52 12.61 16.47 5 5 5

5.HDFC

TOP50

102.25 20.7 29.14 1 2 2

6.1.2 Performance Sheet (Sector Funds)

Fig (in %)

Schemes CAGR

(1yrs)

CAGR

(3yrs)

CAGR

(5yrs)


1.Reliance Banking 120.55 251.23 25.37 1 1 2



66

2.Franklin FMCG 68.68 17.52 21.73 3 4 4

3.UTI infrastructure 66.77 10.89 23.23 3 3

4.SBI Pharma 112.96 3.61 12.31 2 5 5

5.Reliance

Media&Ent

18.94 20.9 88.77 5 2 1

6.1.3Performance Sheet (Large cap Funds)

Fig (in %)

Schemes CAGR

(1yrs)

CAGR

(3yrs)

CAGR

(5yrs)


1.Reliance Vision 88.44 14.1 23.39 2 3 1

2.UTI Eq 82.65 16.34 18.02 3 2 4

3.JM largecap 48.58 0.8 7.94 4 5 5

4.Birlasunlife adv 14.48 8.24 18.16 5 4 3

5.SBI Eq 94.19 37.61 21.11 1 1 2

6.1.4Performance Sheet (Midcap Fund)

Fig (in %)

Schemes CAGR

(1yrs)

CAGR

(3yrs)

CAGR

(5yrs)

Rank1 yr Rank 2yrs Ran

k

3yrs

1JM midcap 110 7.9 14.54 4 3 5

2.SBI mid cap 119.2 1.2 16.86 3 5 3

3.UTI midcap 129.86 13.14 16.49 2 2 4

4.Kotak midcap 109.6 5.2 17.19 5 4 2



67

5.Sundaram midcap 139.49 15.94 28.38 1 1 1

6.1.5Performance Sheet (Small cap Fund)

Fig (in %)

Schemes CAGR(

1yrs)

CAGR

(3yrs)

CAGR

(5yrs)


1.Sundaram small

cap

9.4 6.51 5 2 -

2.JM small&mid cap 113.48 -17.27 4 5 -

3.Birlasunlife small

midcap

140.75 4.26 1 3 -

4.L&T smallcap 119.75 -14.99 3 4 -

5.Religare small

midcap

133.77 7.36 2 1 -



68

6.2Finding &suggestions

6.2.1Diversified Funds

a) The Performance of Tata Dividend & HDFC top200 are better than there

competitors because there Sharpe ratio & CAGR are relatively high against there

competitors, there Beta & Standard Deviation both are low.

b) The Performance of Reliance Diversified & Sundaram are poor because of there

low Sharpe ratio & CAGR. Also they are more risky as compare to there competitors

because of there high Beta.

c) I would suggest giving first priority to HDFC TOP200 and second to Tata

Dividend.

6.2.2 Sector Funds

a) The Performance of Reliance Banking on the Basis of CAGR is outperforming as

compare to its competitors. Its Sharpe ratio is also good after Franklin FMCG.

b) Those who want to take high return as well as risk Reliance Banking is good for

them because its Beta is also high among its competitors.

c) Those who want to keep them safe and able to take less risk, for them Franklin is

better option.

6.2.3 Large cap Funds



69

a) SBI & Reliance vision both have good CAGR and Sharpe ratio, But Reliance have

very less Beta as compare to SBI, so Reliance should be the priority for investment.

b) JM large cap & Birlasunlife adv both is poor performer as far as CAGR and

Sharpe ratio is concern, so try to avoid them.

6.3.4 Mid cap Funds

a) Sundaram select mid cap is the top performer in term of CAGR and Sharpe ratio,

but have relatively high Beta, It is good for Risk taking investors.

b) UTI is second best performer, also have low Beta as compare to Sundaram select

mid cap, so it is good for safe investment.

c) CAGR & Sharpe ratio of SBI is relatively low and its Beta and Standard Deviation

are very high as compare to its competitors, so try to avoid it.

6.3.5 Small cap Funds

a) Sharpe ratio and CAGR of Religare are relatively high, also its Beta is low, and so

it is good to invest in this fund.

b) Sundaram small cap has very low CAGR & Sharpe ratio.

.



70


CHAPTER 6

REFRENCES


71

6.1 Books:

1) Donald E Fischer ,Security Analysis & Portfolio Management

6.2) Web sites:

1) http://www.bluechipindia.co.in/

2) http://www.franklintempletonindia.com

3) http://www.utimf.com

4) http://www.hdfcfund.com/

5) http://mutualfund.birlasunlife.com

6) http://reliancemutual.com/

7) http://investopedia.com

8) http://money.rediff.com

9) http://moneycontrol.com



http://moneycontrol.com/

http://money.rediff.com/

http://investopedia.com/

http://reliancemutual.com/

http://mutualfund.birlasunlife.com/

http://www.hdfcfund.com/

http://www.utimf.com/

http://www.franklintempletonindia.com/

http://www.bluechipindia.co.in/

72



73



Economy & Finance

DOC