ANALYSIS OF MUTUAL FUNDS

Submitted in Partial Fulfillment

for the
Degree of
Bachelor of Business Studies
By
Harsh Kanojia
(Roll No:BBS0059 ,Batch :2009-2012 )
To

DEEN DAYAL UPADHYAYA COLLEGE

University of Delhi
Shivaji Marg, Karampura New Delhi-110015

ACKNOWLEDGEMENT

Nothing concrete can be achieved without an optimal combination of inspiration and dedication. It
is only the critiques from ingenious intellectuals that helped transform a product into a quality
product
At the very outset, it is with a deep sense of gratitude that I acknowledge the able guidance received
from Dr. Yogieta Mehra , for her willingness to share her knowledge and making me work on
such a crucial and informative project. I want to show my gratitude towards Dr. Yogieta Mehra for
whom I could not express in words how much helpful she was in many ways to assist in my project.
The project owes much of its work to her generative suggestions, illuminating comments,
encouragement and ceaseless patience.
I would fail in my duty, if I do not make a special mention of all others who helped me directly
or indirectly in pursuit of this project

INDEX
CONTENTS

PAGE NO.

CHAPTER-1 INTRODUCTION TO THE TOPIC

-MEANING OF MUTUAL FUND
-HISTORY OF INDIAN MUTUAL FUND
-OBJECTIVE OF THE STUDY
-RESEARCH METHODOLOGY

1
2
7
9
10

CHAPTER-2 LITERATURE REVIEW

11
-HOW DOES MUTUAL FUND WORK
-TYPES OF MUTUAL FUND
-ADVATAGES AND DISADVANTAGES OF MUTUAL FUND
-RISKS IN MUTUAL FUND

CHAPTER-3

12
15
19
23

MARKET TRENDS

CHAPTER-4 MAJOR PLAYERS IN THE MUTUAL FUND INDUSTRY

25

29

-BANK V/S MUTUAL FUND

CHAPTER-5 REGULATORY ASPECT OF A MUTUAL FUND
- REGULATORY ASPECTS
-THE INTERNET AND THE MUTUAL FUND

42
4344
49

CHAPTER-6 ANALYSIS OF QUESTIONNAIRE

46
-ANALYSIS OF QUESTIONNAIRE

47

CHAPTER-7 ANALYSIS OF QUESTIONNAIRE

51
-ANALYSIS OF QUESTIONNAIRE

52

CHAPTER-8 FINDINGS OF THE STUDY

64
-CONCLUSION
-RECCOMENDATIONS

65
67

CHAPTER-9 LIMITATIONS
68
- LIMITATIONS
CHAPTER-10 ANNEXURE

69
70

BIBLIOGRAPHY

73

Chapter -I:
Introduction

What is a Mutual Fund

A Mutual Fund is a trust that collects the savings of a number of investors who share a common
financial goal and pools it together to create a larger resource of money. The money thus
collected is invested by the fund manager in different types of securities depending upon the
objective of the scheme. These could range from shares to debentures to money market
instruments.
The income earned through these investments and the capital appreciation realized by the
scheme are shared by its unit holders proportionately i.e. on the basis of 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 portfolio at a relatively low cost.
Anybody with any surplus money that can be invested, even as little as a few thousand rupees
can invest in Mutual Funds. Each Mutual Fund scheme has a defined investment objective and
strategy. The team undertakes this in the most professional manner. A mutual fund is thus the
ideal investment vehicle for todays complex and modern financial scenario.
Price changes in the assets are driven by global events occurring every day, in-fact every minute
in faraway places. It will be very difficult, in-fact next to impossible for an ordinary individual to
have the knowledge, skills, inclination and time to keep track of events, understand their
implications and act speedily. An individual also finds it difficult to keep track of ownership of
his assets, investments, brokerage dues and bank transactions etc. A mutual fund is the answer to
all these situations. It appoints professionally qualified and experienced staff that manages each
of these functions on a full time basis. The costs of hiring these professionals per investor are
very low, as the pool of money invested is large. In effect, the mutual fund vehicle exploits
economies of scale in all three areas - research, investments and transaction processing.

Globally, there are thousands of firms offering tens of thousands of mutual funds with different
investment objectives. Today, mutual funds collectively manage almost as much as or more
money as compared to banks.

SEBI defines mutual funds as Mutual funds means a fund established in the form of a
trust by a sponsor to raise money by the Trustee through the sale of units to the public
under one or more schemes for investing in securities in accordance with these
regulations.

There are 3 entities operating in a mutual fund . They are :

1) An agency which mobilizes savings and gets a commission

2) An investment agency which gets a prescribed rate of commission

3) A trustee institution, which is normally a Bank which holds the stock of securities of
the Mutual fund.

In India the Investment trusts are established under the Companies Act.

There are difference between Mutual funds and investment companies which can be as
follows:

In terms of objective : In case of mutual funds the mobilization of savings is from

the investors, mostly household whereas in case of investment companies it is savings of
household , corporate sector. Highest investments belongs to the promoters of the
company.
In terms of organisation : In case of Mutual funds it is as per SEBI regulations
1993 and in case of UTI as per UTI Act 1963 whereas in case of investment companies it
is as per Companies Act 1956
In terms of Capital structure : For Mutual funds initial capital would be provided
by the sponsor. Scheme wise capital is decided based on the nature of scheme . Units are
offered out of the scheme capital . No debt capital. Whereas, investment companies, on

par with industrial companies . No scheme wise capital out of the equity capital. Capital
may be debt capital also and has the advantage of gearing.
In terms of Liquidity: In Mutual funds it is close ended scheme units are traded on
the organized stock exchange . Open ended schemes offer repurchase of facility and
some ended schemes may also offer repurchase or premature encashment. Whereas, in
case of investment companies. The company share is traded on stock exchange. No
repurchase of shares.
In terms of Name of the schemes: Either open ended or close ended with a wide
variety of investment objectives whereas in case investment companies it is neither open
ended or close ended.

Thus we have seen the difference between the mutual funds and the investment
companies. Let us now understand the superiority of mutual funds over the other
investment options.

Mutual funds with the expertise and experienced management cadre can be able to secure
large varieties of high yielding Blue chip securities and show better results to the
investing public. Thus Mutual funds are gaining popularity due to the following reasons:

The basic purpose of reforms in financial sector was to enhance the generation of
domestic resources by reducing dependence on outside funds. This calls for a market
based institution. . Mutual funds are best suited for this purpose.
Ordinarily investor in the market is not sure of getting share in the normal procedure.
Investing in MF by MF companies get firm allotment. And later selling at a higher price.
So investing in MF yields higher returns to the investors.
Better knowledge of market behavior maximise gains by proper selection and timing of
investments.
Dividends and capital gains are reinvested automatically in MF and are not frittered
away.

 MF operation provide reasonable protection to investors

They create awareness about benefits of investment in capital market and thus able to
mop up large amounts
Foreign capital inflows are attracted and secures profitable investment avenues abroad for
domestic savings through the opening up of off shore funds in various foreign countries.
Disbursing funds in various industrial sectors in view of booming trend has led the
popularity of MF
Risk of loss due to ill informed and misinformed purchase / sale is reduced. Risks are
reduced due to diversification of portfolios in terms of companies and industries.
They are controlled and regulated by SEBI and considered safe.
Thus MF have many advantages even for an individual who wants to put his savings in
various places and not only earn high yields but also safe landing later when he wants to
acquire the money back.

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 five distinct phases

First Phase 1964-87

An Act of Parliament established Unit Trust of India (UTI) on 1963. 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.

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).
SBI Mutual 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.

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.

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.

Fifth Phase - 2004 Onwards (Growth and Consolidation)

The industry has also witnessed several mergers and acquisitions recently, examples of which are
acquisition of schemes of Alliance Mutual Fund by Birla Sun Life, Sun F&C Mutual Fund and
PNB Mutual Fund by Principal Mutual Fund. Simultaneously, more international mutal fund
players have entered India like Fidelity, Franklin Templeton Mutual Fund etc. There were 29
funds as at the end of March 2006. This is a continuing phase of growth of the industry through
consolidation and entry of new international and private sector players.

OBJECTIVE OF THE STUDY

This project Analysis of Mutual Funds In India has been undertaken by me
in order to:

To study what kind of mutual funds are there.

To find whether the fund gives return or not.

To study market trends of the mutual funds.

To know the regulatory framework of the funds.

To find what are the major players in the industry.

Chapter - II:
Literature Review

HOW DOES MUTUAL FUND WORK

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

A draft offer document is prepared at the time of launching the fund. Typically, it pre
specifies the investment objectives of the fund, the risk associated, the costs involved in
the process and the broad rules for entry into and exit from the fund and other areas of
operation. In India, as in most countries, these sponsors need approval from a regulator,
SEBI (Securities exchange Board of India) in our case. SEBI looks at track records of the
sponsor and its financial strength in granting approval to the fund for commencing
operations.

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

It also hires another entity to be the custodian of the assets of the fund and perhaps a third
one to handle registry work for the unit holders (subscribers) of the fund.

In the Indian context, the sponsors promote the Asset Management Company also, in which it
holds a majority stake. In many cases a sponsor can hold a 100% stake in the Asset
Management Company (AMC). E.g. Birla Global Finance is the sponsor of the Birla Sun Life
Asset Management Company Ltd., which has floated different mutual funds schemes and also
acts as an asset manager for the funds collected under the schemes.

ORGANISATION OF A MUTUAL FUND

There are many entities involved and the diagram below illustrates the organizational set
up of a mutual fund:

Organization of a Mutual Fund

Types Of Mutual Funds

Open-ended Funds
An open-end fund is one that is available for subscription all through the year. These do not have
a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value ("NAV")
related prices. The key feature of open-end schemes is liquidity.

Closed-ended Funds
A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15 years.
The fund is open for subscription only during a specified period. Investors can invest in the
scheme at the time of the initial public issue and thereafter they can buy or sell the units of the
scheme on the stock exchanges where they are listed. In order to provide an exit route to the
investors, some close-ended funds give an option of selling back the units to the Mutual Fund
through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least one of
the two exit routes is provided to the investor.

Interval Funds
Interval funds combine the features of open-ended and close-ended schemes. They are open for
sale or redemption during pre-determined intervals at NAV related prices.

Growth Funds
The aim of growth funds is to provide capital appreciation over the medium to long- term. Such
schemes normally invest a majority of their corpus in equities. It has been proven that returns
from stocks, have outperformed most other kind of investments held over the long term. Growth
schemes are ideal for investors having a long-term outlook seeking growth over a period of time.

Income Funds
The aim of income funds is to provide regular and steady income to investors. Such schemes
generally invest in fixed income securities such as bonds, corporate debentures and Government
securities. Income Funds are ideal for capital stability and regular income.

Balanced Funds
The aim of balanced funds is to provide both growth and regular income. Such schemes
periodically distribute a part of their earning and invest both in equities and fixed income
securities in the proportion indicated in their offer documents. In a rising stock market, the NAV
of these schemes may not normally keep pace, or fall equally when the market falls. These are
ideal for investors looking for a combination of income and moderate growth.

Money Market Funds

The aim of money market funds is to provide easy liquidity, preservation of capital and moderate
income. These schemes generally invest in safer short-term instruments such as treasury bills,
certificates of deposit, commercial paper and inter-bank call money. Returns on these schemes
may fluctuate depending upon the interest rates prevailing in the market. These are ideal for
Corporate and individual investors as a means to park their surplus funds for short periods.

Load Funds
A Load Fund is one that charges a commission for entry or exit. That is, each time you buy or
sell units in the fund, a commission will be payable. Typically entry and exit loads range from
1% to 2%. It could be worth paying the load, if the fund has a good performance history.

No-Load Funds
A No-Load Fund is one that does not charge a commission for entry or exit. That is, no
commission is payable on purchase or sale of units in the fund. The advantage of a no load fund
is that the entire corpus is put to work.

Tax Saving Schemes

These schemes offer tax rebates to the investors under specific provisions of the Indian Income
Tax laws as the Government offers tax incentives for investment in specified avenues.
Investments made in Equity Linked Savings Schemes (ELSS) and Pension Schemes are
allowed as deduction u/s 88 of the Income Tax Act, 1961. The Act also provides opportunities
to investors to save capital gains u/s 54EA and 54EB by investing in Mutual Funds, provided
the capital asset has been sold prior to April 1, 2005-06 and the amount is invested before
September 30, 2005-06.

Industry Specific Schemes

Industry Specific Schemes invest only in the industries specified in the offer document. The
investment of these funds is limited to specific industries like InfoTech, FMCG, and
Pharmaceuticals etc.

Index Schemes
Index Funds attempt to replicate the performance of a particular index such as the BSE Sensex or
the NSE 50

Sectoral Schemes
Sectoral Funds are those, which invest exclusively in a specified industry or a group of industries
or various segments such as 'A' Group shares or initial public offerings.

Systematic Investment Plan (SIP)

Here the investor is given the option of preparing a pre-determined number of post-dated
cheques in favour of the fund. He will get units on the date of the cheque at the existing NAV.
For instance, if on 10th May, he has given a post-dated cheque for August 10th, he will get units
on 10th August at existing NAV.

ADVANTAGES OF MUTUAL FUND

Professional Management - The primary advantage of funds (at least theoretically) is the
professional management of your money. Investors purchase funds because they do not have the
time or the expertise to manage their own portfolio. A mutual fund is a relatively inexpensive
way for a small investor to get a full-time manager to make and monitor investments. Investors
are exposed to reduced investment risk due to portfolio diversification, economies of scale in
transaction cost and professional management

Diversification - By owning shares in a mutual fund instead of owning individual stocks or

bonds, your risk is spread out. 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. In other words,
the more stocks and bonds you own, the less any one of them can hurt you (think about Enron).
Large mutual funds typically own hundreds of different stocks in many different industries. It
wouldn't be possible for an investor to build this kind of a portfolio with a small amount of
money. Small investors can participate in larger basket of securities and share the benefits of
efficiently managed portfolio by experts, and are freed from maintaining records of company
share certificates, and tracking tax rules. Mutual fund investments are less risky due to portfolio
diversification, which is possible mainly due to large funds available at their disposal. Small
investors can never spread their risks across such a wide portfolio, as can mutual funds.

Freedom from tracking investments Investors do not have to track their investments
regularly, as experts who buy and sell securities for them do the tracking. Investors are only
required to track the performance of the mutual fund.

Economies of Scale
Because a mutual fund buys and sells large amounts of securities at a time, its transaction costs
are lower than you as an individual would pay.

Liquidity
Just like an individual stock, a mutual fund allows you to request that your shares be converted
into cash at any time.

Simplicity
Buying a mutual fund is easy! Pretty well any bank has its own line of mutual funds, and the
minimum investment is small. Most companies also have automatic purchase plans whereby as
little as $100 can be invested on a monthly basis.

Freedom from tracking investments

Investors do not have to track their investments regularly, as experts who buy and sell securities
for them do the tracking. Investors are only required to track the performance of the mutual fund.

Professional management
Professionals run mutual funds, with experience in portfolio management. Analysts employed
by mutual funds analyze data and information available in a manner that cannot be matched by
the lay investor.

Tax benefits
Income tax benefits are granted to investors in mutual funds, making it more tax efficient as
compared to other comparable investment avenues.

Disadvantages of Mutual Funds

Professional Management- Did you notice how we qualified the advantage of professional
management with the word "theoretically"? Many investors debate over whether or not the socalled professionals are any better than you or I at picking stocks. Management is by no means
infallible, and, even if the fund loses money, the manager still takes his/her cut.

Costs - Mutual funds don't exist solely to make your life easier--all funds are in it for a profit.
The mutual fund industry is masterful at burying costs under layers of jargon. These costs are so
complicated that in this tutorial we have devoted an entire section to the subject.

Dilution - It's possible to have too much diversification. Because funds have smallholdings in
so many 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.

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.

No tailor-made Portfolio: Investors who invest on their own can build teir own portfolios
shares, bonds and other securities. Investing through funds means he delegates this decision to
the fund mangers. High-net-worth individuals or large corporate investors may find this to be a
constraint in achieving their objectives. However, most mutual funds help investors overcome
this constraint by offering families of schemes-a large number of different schemes within the
same fund. In each scheme there are various plans and options. An investor can choose from
different investment schemes/plan/options and construct an investment portfolio that meets his
investment objectives.

Managing a portfolio of funds: Availability of a large number of options from mutual

funds can actually mean too much choice for the investor. He may again need advice on how to
select a fund to achieve his objectives, quite similar to the situation when he has to select
individual shares or bonds to invest in. fortunately, India now has a large number of AMFI
registered and tested fund distributors and financial planners who are capable of guiding the
investors.

TYPES OF RISKS
Consider these common types of risk and evaluate them against potential rewards when you
select an investment.

Managing Risk
At times the prices or yields of all the securities in a particular market rise or fall due to broad
outside influences. When this happens, the stock prices of both an outstanding, highly profitable
company and a fledgling corporation may be affected. This change in price is due to "market
risk".

Inflation Risk
Sometimes referred to as "loss of purchasing power." Whenever inflation sprints forward faster
than the earnings on your investment, you run the risk that you'll actually be able to buy less, not
more. Inflation risk also occurs when prices rise faster than your returns. Changing interest rates
affect both equities and bonds in many ways. Investors are reminded that "predicting" which way
rates will go is rarely successful. A diversified portfolio can help in offsetting these changes.

Credit Risk
In short, how stable is the company or entity to which you lend your money when you invest?
How certain are you that it will be able to pay the interest you are promised, or repay your
principal when the investment matures?

Effect of Loss of Key Professional

An industries' key asset is often the personnel who run the business i.e. intellectual properties of
the key employees of the respective companies. Given the ever-changing complexion of few
industries and the high obsolescence levels, availability of qualified, trained and motivated
personnel is very critical for the success of industries in few sectors. It is, therefore, necessary to
attract key personnel and also to retain them to meet the changing environment and challenges
the sector offers.
Failure or inability to attract/retain such qualified key personnel may impact the prospects of the
companies in the particular sector in which the fund invests.

Exchange Risk
A number of companies generate revenues in foreign currencies and may have investments or
expenses also denominated in foreign currencies. Changes in exchange rates may, therefore, have
a positive or negative impact on companies which in turn would have an effect on the investment
of the fund.

Inbvestment Risk
The sectoral fund schemes, investments will be predominantly in equities of select companies in
the particular sectors. Accordingly, the NAV of the schemes are linked to the equity performance
of such companies and may be more volatile than a more diversified portfolio of equities.

Changes In The Government policy

Changes in Government policy especially in regard to the tax benefits may impact the business
prospects of the companies leading to an impact on the investments made by the

MAJOR PLAYERS IN THE INDIAN MUTUAL FUND INDUSTRY

Morgan Stanley Asset Management (I) Pvt. Ltd.
Morgan Stanley Dean Witter & Co. is a preeminent global financial services firm that provides a
wide range of services to major corporations, governments, financial institutions and high-networth individuals worldwide. With approximately 50,000 employees in 24 countries, the Firm
has a significant presence in every financial market. Morgan Stanley Dean Witter (MSDW)
Investment Management is the institutional asset management division of MSDW & Co. MSDW
Investment Management was established in 1975 to help governments, corporations, pension
funds and non-profit organizations meet their long-term investment objectives. MSDW
Investment Management manages US$ 385 billion for institutional and individual investors.
MSDW Investment Management manages three major offshore India funds, the India Magnum
Fund (traded on the Dublin Stock Exchange), the India Investment AG (listed on the Zurich
Stock Exchange) and the India Investment Fund (traded on the New York Stock Exchange).
The Morgan Stanley Growth Fund was launched in January 1994 and garnered an initial corpus
of Rs. 981 crores. MSGF is listed on the Mumbai, Delhi, Calcutta, Chennai and Ahmedabad
Stock Exchanges and is also traded on the National Stock Exchange. In 1997, MSGF units were
placed as eligible securities with the National Securities Depository Limited, which made it
possible for unit holders to hold units in electronic/dematerialized form.

DSP Merill Lynch Investment Managers

DSP Merrill Lynch Asset Management (India) Ltd., (a company registered under the Companies
Act, 1956) has been set up by DSPML and MLAM, to act as the Asset Management Company
(AMC) to the Fund. The AMC has been appointed as the Investment Manager to the fund,
MLAM holds 40% of the paid up share capital of the AMC, while the balance 60%
(approximately), is held by DSPML. The Investment Manager was approved by SEBI to act as
the AMC for the Mutual Fund.
Merrill Lynch Investment Managers investment philosophy is designed to seek consistent, longterm strategic performance results. Its disciplined value oriented approach to managing its
clients portfolios has been with the primary objective of seeking consistent returns over a long
period.

Birla Sunlife Asset Management Company Ltd

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

Aditya

Birla

Group,

one

of

Indian

leading

Industrial

houses.

Sun Life Assurance Company of Canada is a leading financial services organization, providing a
diversified range of risk management, wealth management and money management products for
individuals and corporations worldwide. Sun Life commenced business in Canada in 1871, and
is headquartered in Toronto with major operations in Canada, United States, United Kingdom
and Asia Pacific. Sun Life has consistently earned ratings that rank among the best in the North
American financial services sector. It has a major presence in the growing mutual fund markets

through MFS Investment Management in the U.S., and through Spectrum United Mutual Funds
in Canada. It is also active in the unit trust business in the U.K., and its near term plans include
consideration of mutual fund offerings in the Philippines.
The Aditya Birla group is a multinational group consisting of the best known companies in India
in a range of key sectors like Textiles (GRASIM), Rayon (Indian Rayon), Aluminum
(HINDALCO), Petroleum (MRPL), Finance (BGFL), Fertilizers (Indo-Gulf). Birla Mutual Fund
offers investment Schemes which aim to cater to every need of the investor. Drawing on the
expertise of a worldwide staff of over 10,000 people and a network of more than 65,000 agents
and distributors, Sun Life is committed to providing not just products and services, but solutions
for clients financial and risk management needs.

Kothari Pioneer Asset Management Company Ltd.

Kothari Pioneer Mutual Fund is sponsored by the Investment Trust of India Ltd. of the H C
Kothari Group and Pioneer Investment Management Inc.(PIM) of The Pioneer Group Inc.,USA.
Kothari Pioneer is one of India s first mutual fund in the private sector. Today, it manages
Rs.2700 crores in assets for over 650,000 investors across a range of growth, balanced, income,
liquid and tax saving funds.
The sponsors of the fund are Pioneer Investment Management (PIM), USA and the Investment
Trust of India, who together bring more than 120 years of experience in financial services. PIM
currently manages over $24 billion in assets worldwide on behalf of individual and institutional
investors. Based in Boston, Pioneer has financial services operations in Germany, Ireland,
Poland, Czech Republic, India and Russia. Its flagship fund, Pioneer Fund, was founded in 1928
and is the fourth oldest mutual fund in the United States.

Sun F & C Asset Management (India) Pvt. Ltd.

SUN F&C Asset Management (India) Pvt. Ltd. is an equal joint venture between Foreign &
Colonial Emerging Markets Ltd. U.K. and SUN Securities (India) Pvt. Ltd. Foreign & Colonial,
established in 1868, is one of Europe s leading asset management groups. F&C is a part of Hypo
Bank, one of Germany s oldest and largest banks and has been investing in the Indian stock
markets since 1993. SSIL is an Indian subsidiary company of Sun Group. Its activities consist of
principal investment and investment management operations in emerging markets and
technologies

as

well

as

international

commercial

activities.

SUN F&C currently manages and advises India Performance Fund (an offshore fund), SUN F&C
Value Fund (a domestic fund) and F&C sponsored Indian Investment Company SICAV
(INDICO).
SUN F&C launched its Indian operations by becoming the domestic advisor to FCEMs INDICO
fund. It has since then launched India Performance Fund, an offshore fund, in 1996 and five
domestic schemes - Value Fund (1997), Money Value Fund (1998), Balanced Fund (1999),
Emerging Technologies Fund (2005-06), Monthly Income Plan (2005-06) and Resurgent India
Equity Fund (2005-06). Over the last 5 years, the Company has built a strong track record of
managing asset classes, equity and debt. Today, Sun F&C manages/advises a corpus of over
Rs.1000 crore (US$230 mn), of which over 50% is equity. This corpus is spread over 8 schemes,
6 domestic and 2 offshore. A team of 56 people spread over 8 location service almost 80,000
customers.

UNIT TRUST OF INDIA

Every year, millions of Indians entrust their savings to Unit Trust of India to build up a
financially secure future. This faith and confidence of investors stem from UTI's commitment, as
reflected in its long track record to ensure its investors, safety, liquidity and attractive yield on
their investments.
Set up in 1964, by an Act of Parliament, UTI Act 1963, UTI has grown into one of the biggest
players and carved out a special position in the Indian capital market.
Today, UTI manages an aggregate portfolio of Rs. 72,698 Crore as on 31/12/1999 and services
45 million investor accounts under 90 saving schemes catering to varying needs of different
classes of investors.
UTI has a servicing and distribution network of 53 branch offices, 320 District Representatives
and about 87,000 agents. It provides a complete range of services to its investors, at a low gross
cost of less than 1.01 percent of invisible funds and does not charge any asset management fee.
UTI is a symbol of trust and confidence among Indian investors. In the last seven years, the
number of schemes managed by UTI increased from 35 to 92, while the number of unit holding
accounts recorded a sevenfold increase from 65 lakhs to over 450 lakhs.

UTI's expanding product range cover a broad spectrum of investment goals and includes open
end and closed-end income and capital accumulation funds. Among the most popular are Unit
Scheme 1964 and Master series equity schemes such as Mastershare, Masterplus, Master Equity
Plans, etc.
UTI also manages schemes aimed at meeting specific needs like

Low cost insurance cover (ULIP)

Monthly income needs of retired persons and women.
Income and liquidity needs of religious and charitable institutions and trusts.
Building up funds to meet cost of higher education and career plans for children.
Future wealth and income needs of girl child and women.
Building savings to cover medical insurance at old age.
Wealth accumulation to meet income needs after retirement.
Individual household investors account for 99% of UTI's investor accounts and about 65% of
unit capital of UTI schemes. Products are distributed through a marketing force of about 87,000
commission-based canvassing agents trained to explain the products and provide related services
support to investors.
Today, these agents are supervised by 320 Chief Representatives who guide the investors,
organize, train and motivate the agents in their respective areas of operation (specified districts)
Investors under various schemes of UTI are now serviced through 53 UTI branches, 213
collection centers and offices of 6 Registrar and Transfer Agencies appointed by UTI. Besides
there are 52 franchises offices, which
accept applications and distribute certificates to unit holders. UTI has set up its own associate
company, UTI-Investor Services Limited (UTIISL), to meet the growing needs of unit holder
servicing.

UTI is also currently implementing a technology upgradation program, involving networking of

on-line computer systems at UTI's offices, and offices of Registrars and Transfer Agencies. This
would enable UTI to improve service quality significantly.
UTI publishes weekly/daily NAVs for all its listed schemes and offers a prospectus for every
scheme. It also publishes half-yearly results for all schemes and releases information on portfolio
as also largest shareholding for growth schemes and Unit Scheme 1964. UTI adheres to
disclosure requirements specified by SEBI.

Equity Investing:
More than fifty percent of total funds of UTI Schemes are invested in equity. UTI is the largest
operator in the Indian equity market with total investments worth Rs 35,007.83 crores at book
value. Its various funds collectively hold stocks in more than 1500 Indian companies and account
for over 8 percent of the market capitalization of all listed scripts on the Bombay Stock
Exchange.
Corporate debt:
UTI is one of the main providers of debt finance to the corporate sector. Investment in corporate
debt instruments account for 38 percent of the total investible funds. Credit market operations
cover a range of instruments including publicly issued and privately placed debentures, bonds
and medium term notes. UTI's debt portfolio quality is represented by 98 percent performing
assets.

HDFC AMC (ASSET MANAGEMENT COMPANY)

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 wide with its letter dated 30th june 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.
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 single most important factor that drives HDFC Mutual Fund is its belief to give the investor
the chance to profitably invest in the financial market, without constantly worrying about the
market swings. To realize this belief, HDFC Mutual Fund has set up the infrastructure required to
conduct all the fundamental research and back it up with effective analysis. Our strong emphasis
on managing and controlling portfolio risk avoids chasing the latest fads and trends.
HDFC Asset Management Company (AMC) is the first AMC in India to have been assigned the
CRISIL Fund House Level 1 rating. This is its highest Fund Governance and Process Quality
Rating which reflects the highest governance levels and fund management practices at HDFC
AMC It is the only fund house to have been assigned this rating for two years in succession.
Over the past, we have won a number of awards and accolades for our performance.
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.

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.
Banks v/s Mutual Funds
CHARACTERISTI BANKS

MUTUAL

CS
Returns

FUNDS
Better

Administrative exp.
Risk
Investment options
Network

Low
High
Low
Less
High penetration

Liquidity
Quality of assets
Interest calculation

improving
At a cost
Better
Not transparent
Transparent
Minimum balance between 10th. Everyday

Guarantee

& 30th. Of every month

Maximum Rs.1 lakhs on deposits None

Low
Moderate
More
Low

but

REGULATORY ASPECT OF A MUTUAL FUND

Schemes of a Mutual Fund
The asset management company shall launch no scheme unless the trustees approve such
scheme and a copy of the offer document has been filed with the Board.
Every mutual fund shall along with the offer document of each scheme pay filing fees.
The offer document shall contain disclosures which are adequate in order to enable the
investors to make informed investment decision including the disclosure on maximum
investments proposed to be made by the scheme in the listed securities of the group
companies of the sponsor
The mutual fund and asset Management Company shall be liable to refund the
application money to the applicants
If the mutual fund fails to receive the minimum subscription amount referred to in clause
(a) of sub-regulation (1)
If the moneys received from the applicants for units are in excess of subscription as
referred to in clause (b) of sub-regulation (1).
The asset management company shall issue to the applicant whose application has been
accepted, unit certificates or a statement of accounts specifying the number of units
allotted to the applicant as soon as possible but not later than six weeks from the date of
closure of the initial subscription list and or from the date of receipt of the request from
the unit holders in any open ended scheme.

Rules Regarding Advertisement

 The offer document and advertisement materials shall not be misleading or contain any
statement or opinion, which are incorrect or false.
Investment Objectives and Valuation Policies:
The price at which the units may be subscribed or sold and the price at which such units
may at any time be repurchased by the mutual fund shall be made available to the
investors.

General Obligations
Every asset management company for each scheme shall keep and maintain proper books
of accounts, records and documents, for each scheme so as to explain its transactions and
to disclose at any point of time the financial position of each scheme and in particular
give a true and fair view of the state of affairs of the fund and intimate to the Board the
place where such books of accounts, records and documents are maintained.
The financial year for all the schemes shall end as of March 31 of each year.
Every mutual fund shall have the annual statement of accounts audited by an auditor who
is not in any way associated with the auditor of the asset management company.

Procedure for Action In Case Of Default

On and from the date of the suspension of the certificate or the approval, as the case may be,
the mutual fund, trustees or asset management company, shall cease to carry on any activity
as a mutual fund, trustee or asset management company, during the period of suspension, and
shall be subject to the directions of the Board with regard to any records, documents, or
securities that may be in its custody or control, relating to its activities as mutual fund,
trustees or asset management company.

Restrictions on Investments
A mutual fund scheme shall not invest more than 15% of its NAV in debt instruments
issued by a single issuer, which are rated not below investment grade by a credit rating
agency authorized to carry out such activity under the Act. Such investment limit may be
extended to 20% of the NAV of the scheme with the prior approval of the Board of
Trustees and the Board of asset Management Company.
A mutual fund scheme shall not invest more than 10% of its NAV in an rated debt
instruments issued by a single issuer and the total investment in such instruments shall
not exceed 25% of the NAV of the scheme. All such investments shall be made with the
prior approval of the Board of Trustees and the Board of asset Management Company.
No mutual fund under all its schemes should own more than ten per cent of any
company's paid up capital carrying voting rights.
Such transfers are done at the prevailing market price for quoted instruments on spot
basis.
The securities so transferred shall be in conformity with the investment objective of the
scheme to which such transfer has been made.
A scheme may invest in another scheme under the same asset management company or
any other mutual fund without charging any fees, provided that aggregate inter scheme
investment made by all schemes under the same management or in schemes under the
management of any other asset management company shall not exceed 5% of the net
asset value of the mutual fund.
The initial issue expenses in respect of any scheme may not exceed six per cent of the
funds raised under that scheme.
Every mutual fund shall buy and sell securities on the basis of deliveries and shall in all
cases of purchases, take delivery of relative securities and in all cases of sale, deliver the
securities and shall in no case put itself in a position whereby
it has to make short sale or carry forward transaction or engage in badla finance.

 Every mutual fund shall, get the securities purchased or transferred in the name of the
mutual fund on account of the concerned scheme, wherever investments are intended to
be of long-term nature.
Pending deployment of funds of a scheme in securities in terms of investment objectives
of the scheme a mutual fund can invest the funds of the scheme in short term deposits of
scheduled commercial banks.
No mutual fund scheme shall make any investment in;
Any unlisted security of an associate or group company of the sponsor; or
Any security issued by way of private placement by an associate or group company of the
sponsor; or
The listed securities of group companies of the sponsor which is in excess of 30% of the
net assets [of all the schemes of a mutual fund.
No mutual fund scheme shall invest more than 10 per cent of its NAV in the equity shares
or equity related instruments of any company. Provided that, the limit of 10 per cent shall
not be applicable for investments in index fund or sector or industry specific scheme.
A mutual fund scheme shall not invest more than 5% of its NAV in the equity shares or
equity related investments in case of open-ended scheme and 10% of its NAV in case of
close-ended scheme.

Chapter-III:
Research Design &
Methodology

Research Methodology
This project started by meetings different people in order to get information about the
mutual funds. Then I thoroughly examined the various activities of mutual funds.
Then I visited various websites of the mutual fund to know the recent and upcoming
trends of mutual funds.
I went forward collecting the data of Mutual Funds through different web sites.
I have keep a track on the return given by different mutual fund and also calculated
the Sensex return of last two years i.e from January 2010 December 2011 .

I have used different ratios to analyse mutual fund like: Sharpe Ratio
Beta Value
Alpha Value
Tracking Error
Treynor Ratio

Flow Chart

Meetings different people in order to get information about the

mutual funds.

Visited various websites of the mutual .fund to collect data.

Calculate return of Mutual fund and Sensex from

January 2010 December 2011.

Analyse different Mutual funds by using different methods egBeta ,Alpha value etc.

On the basis of analysis draw conclusion.

Chapter - IV: Data

Collection and
Analysis

Tools and Techniques

Sharpe Ratio
The Sharpe ratio tells us whether a portfolio's returns are due to smart investment decisions or a
result of excess risk. This measurement is very useful because although one portfolio or fund can
reap higher returns than its peers, it is only a good investment if those higher returns do not come
with too much additional risk. The greater a portfolio's Sharpe ratio, the better its risk-adjusted
performance has been. A negative Sharpe ratio indicates that a risk-less asset would perform
better than the security being analyzed.

Beta Ralue
Beta is calculated using regression analysis, and you can think of beta as the tendency of a
security's returns to respond to swings in the market. A beta of 1 indicates that the security's price
will move with the market. A beta of less than 1 means that the security will be less volatile than
the market. A beta of greater than 1 indicates that the security's price will be more volatile than
the market. For example, if a stock's beta is 1.2, it's theoretically 20% more volatile than the
market.
Many utilities stocks have a beta of less than 1. Conversely, most high-tech Nasdaq-based stocks
have a beta of greater than 1, offering the possibility of a higher rate of return, but also
posing more risk.

Treynor Ratio

the Treynor ratio is a risk-adjusted measure of return based on systematic risk. It is similar
to the Sharpe ratio, with the difference being that the Treynor ratio uses beta as the
measurement of volatility.
Also known as the "reward-to-volatility ratio"

Tracking Error
Tracking errors are reported as a "standard deviation percentage" difference. This measure
reports the difference between the return an investor receives and that of the benchmark he or she
was attempting to imitate.

Standard Deviation
Standard deviation is a statistical measurement that sheds light on historical volatility. For
example, a volatile stock will have a high standard deviation while the deviation of a stable blue
chip stock will be lower. A large dispersion tells us how much the return on the fund is deviating
from the expected normal returns.

Alpha Value
Alpha of any financial security indicates the minimum level of return which an investor can
expect from that security.
The income looking investor can invest in the stocks with high alpha values.

Analysis of Mutual funds

ICICI Prudential Infrastructure Fund - Retail Plan (G)

Fund Snapshot:
Structure

Open Ended Equity fund

Fund Manager

Sankaran Naren

Fund Objective

To

provide

distribution

capital
to

unit

appreciation
holders

and
by

income
investing

predominantly in equity/equity related securities of

the

companies

belonging

to

infrastructure

development and the balance in debt securities and

money market instruments including call money.
Inception Date

16th Aug, 2005

Fund Size

Rs. 1,711.81 Crores

Face Value (Rs./Unit)

Rs. 10

NAV (as on 30th April, 2007)

Growth option : Rs. 19.19

Dividend option : Rs. 14.91

Minimum Investment

Rs. 5000

Expense Ratio

1.93%

Benchmark
Asset Size (Rs cr)

S&P CNX Nifty

2,091.20 (Dec-30-2011)

http://www.moneycontrol.com/mutual-funds/nav/icici-prudential-infrastructure-fund-retailplan/returns-calculator-MPI108.html

UTI Infrastructure Fund

Fund Snapshot:
Structure

Open Ended Equity fund

Fund Manager

Sanjay Dongre

Fund Objective

To provide Capital appreciation through investing in

the stocks of the companies engaged in the sectors
like Metals, Building materials, oil and gas, power,

chemicals, engineering etc. The fund will invest in

the stocks of the companies which form part of
Infrastructure Industries.
Inception Date

7th april, 2004

Fund Size

Rs. 812.19 Crores

Face Value (Rs./Unit)

Rs. 10

NAV (as on 30th March, 2007)

Growth option : Rs. 25.99

Dividend option : Rs. 18.99

Minimum Investment

Rs. 5000

Benchmark

BSE 100

Asset Size (Rs cr)

2,045.80 (Dec-30-2011)

http://www.moneycontrol.com/mutual-funds/nav/uti-infrastructure-fund/returns-calculatorMUT065.html

DSP BlackRock India T.I.G.E.R. Fund - Regular Plan (G)

Fund Snapshot:

Structure

Open Ended Equity fund

Fund Manager

Soumendra Nath Lahiri

Fund Objective

An open ended diversified equity Scheme, seeking to

generate capital appreciation, from a portfolio that is
substantially constituted of equity securities and equity
related securities of corporates, which could benefit
from structural changes brought about by continuing

liberalization in economic policies by the Government

and/or from continuing investments in infrastructure,
both by the public and private sector
Inception Date

25th May, 2004

Face Value (Rs./Unit)

Rs. 10

NAV (as on 30th April, 2007)

Growth - Rs. 34.1240

Dividend - Rs. 19.311

Minimum Investment

Rs. 5000

Benchmark

BSE 100

Asset Size (Rs cr)

1,637.00 (Dec-30-2011)
http://www.moneycontrol.com/mutual-funds/nav/dsp-blackrock-india-t-i-g-e-r-fund-regularplan/returns-calculator-MDS039.html

Canara Robeco Infrastructure (G)

Fund Snapshot:

Structure

Open Ended Equity fund

Fund Manager

Umesh Kamath

Fund Objective

To generate income / capital appreciation by investing

in equities and equity related instruments of companies
in the infrastructure sector.

Inception Date

9th november, 2005

Face Value (Rs./Unit)

Rs. 10

NAV (as on 30th April, 2007)

Growth - Rs. 15.05

Dividend - Rs. 12.86

Minimum Investment

Rs. 5000

Benchmark

BSE 100

Asset Size (Rs cr)

119.70 (Dec-30-2011)
http://www.moneycontrol.com/mutual-funds/nav/canara-robeco-infrastructure/returns-calculatorMCA040.html
Birla Sun Life New Millennium (G)
Fund Snapshot:

Structure

Open Ended Equity fund

Fund Manager

Atul Pankar
A multi-sector open-ended growth scheme with the
objective of long term growth of capital, through a
portfolio with a target allocation of 100%
equity,focusing on investing in technology and
technology dependent companies hardware peripherals
and components, software, telecom, media, internet and
e-commerce and other technology enabled companies
The secondary objective is income generation and
distribution of dividend.

Fund Objective

Inception Date

15th January, 2000

Face Value (Rs./Unit)

Rs. 10

NAV (as on 30th April, 2007)

Growth - Rs

Dividend - Rs.
Minimum Investment

Rs. 5000

Benchmark

BSE TECK

Asset Size (Rs cr)

48.80 (Dec-30-2011)
http://www.moneycontrol.com/mutual-funds/nav/birla-sun-life-new-millennium/returnscalculator-MAC025.html

HDFC Growth Fund (G)

Fund Snapshot:

Structure

Open Ended Equity fund

Fund Manager

Srinivas Rao Ravuri

To generate long term capital appreciation from a
portfolio that is invested predominantly in equity and
equity related instruments

Fund Objective

Inception Date

11th September, 2000

Face Value (Rs./Unit)

Rs. 10

NAV (as on 30th April, 2007)

Growth - Rs
Dividend - Rs.

Minimum Investment

Rs. 5000

Benchmark

BSE SENSEX

Asset Size (Rs cr)

1,228.30 (Dec-30-2011)

http://www.moneycontrol.com/mutual-funds/nav/hdfc-growth-fund/returns-calculatorMHD001.html

IDFC Equity Fund - Plan A (G)

Fund Snapshot:

Structure

Open Ended Equity fund

Fund Manager

Kenneth Andrade
The investment objective of the scheme is to seek to
generate capital growth from a portfolio of
predominantly equity and equity related
instruments(Including Equity derivatives) The scheme
may also invest in debt and money market instruments
to generate reasonable income.

Fund Objective

Inception Date

16th May, 2006

Face Value (Rs./Unit)

Rs. 10

NAV (as on 30th April, 2007)

Growth - Rs
Dividend - Rs.

Minimum Investment

Rs. 5000

Benchmark

BSE 500

Asset Size (Rs cr)

368.90 (Dec-30-2011)
http://www.moneycontrol.com/mutual-funds/nav/idfc-equity-fund-plan-a/returns-calculatorMAG106.html

JPMorgan India Equity Fund (G)

Fund Snapshot:

Structure

Open Ended Equity fund

Fund Manager
Fund Objective

Harshad Patwardhan
The investment objective of the Scheme is to generate
income and long-term capital growth from a diversified
portfolio of predominantly equity and equity-related
securities including equity derivatives.

Inception Date

19th April , 2007

Fund Size

Rs.

Face Value (Rs./Unit)

Rs. 10

NAV (as on 30th April, 2007)

Growth - Rs
Dividend - Rs.

Minimum Investment

Rs. 5000

Benchmark

BSE200

Asset Size (Rs cr)

319.60 (Dec-30-2011)
http://www.moneycontrol.com/mutual-funds/nav/jpmorgan-india-equity-fund/returns-calculatorMJP001.html

ANALYSIS OF DIFFERENT MUTUAL FUNDS

SENSE SENSE
SENSEX
ICICI
X
X
RETURN
INFRA
OPENI CLOSI
(%)
(%)
NG
NG
January17365.3 16357.9 -5.80125848
-5.2
2010
7
6
February16339.3 16254.2 -0.52095191
-1.5
2010
2
March-2010 16255.3 17527.7 7.827832471
5.2
3
7
April -2010 17555.0 17503.4 -0.29376179
0.9
4
7
May - 2010 17536.8 16666.4 -4.96360238
-3.8
6
June 2010 16942.8 17534.0 3.489796858
5.0
2
9
July - 2010 17679.3 17992.0 1.768504933
4.1
4
0
Augest-2010 17911.3 18032.1 0.674434198
-1.4
1
1
September- 18215.2 19956.3 9.558239017
6.4
2010
8
4
October20094.1 19941.0 -0.76176551
-2.9
2010
1
4
November- 20272.4 19405.1 -4.27865546
-4.1
2010
9
December- 19529.9 20389.0 4.398773374
1.2
2010
9
7
Januray20621.6 18395.9 -10.7927558
-10.1
2011
1
7
February18425.1 17700.9 -3.93087069
-2.7
2011
8
1
March-2011 17982.2 19290.1 7.273271243
4.1
8
8
April -2011 19463.1 19292.0 -0.87904759
-0.4
1
2
May 2011 19224.0 18232.0 -5.16000295
-3.2
2
6

UTI
INFRA
(%)

DSP (%)

CANARA
(%)

-5.6

-4.1

-4.5

-2.0

-1.8

-3.1

3.3

4.7

6.8

-0.4

2.0

2.4

-3.6

-2.5

-1.4

6.9

6.7

5.1

-0.3

2.0

0.6

-1.2

2.0

2.0

5.8

5.2

4.7

-2.1

-1.6

-3.1

-7.0

-5.5

-5.4

-0.4

-2.3

0.7

-10.4

-11.9

-7.2

-4.2

-4.0

-2.5

4.7

4.3

5.7

-1.2

0.4

1.5

-2.9

-2.4

-3.1

June 2011
July - 2011
August
2011
September2011
October2011
November2011
December2011
AVERAGE
RETURN
STD DEV

18527.1
2
18974.9
6
18352.2
3
16585.1
16225.9
7
17540.5
5
16555.9
3

18693.8
6
18209.5
2
16416.3
3
16698.0
7
17804.8

0.899977978

0.1

-1.0

-0.7

-1.1

-4.0339479

-1.5

-2.1

-1.9

0.9

-10.5485818

-9.0

-9.2

-8.0

-6.5

0.681153566

-3.1

-3.5

-2.2

-1.1

9.730265741

5.7

4.4

4.3

3.5

17008.3
4
15543.9
3

-3.0341694

-8.4

-9.2

-8.6

-7.8

-6.11261343

-8.4

-10.4

-8.7

-6.9

-0.61707232
5.666242852

SHARPE
RATIO

-0.2412661

BETA
ALPHA
TRACKIN
G ERROR
TREYNOR
RATIO

January2010
February2010
March2010
April -2010
May - 2010
June

5.666242852

-1.375
4.8480
61
0.4383
2
1.0681
23
0.7158
9
4.8480
61
1.9894
7

-2.15
4.921029

-1.44167
4.86173
3

-0.58931

-0.4508
0.99899
5

1.021518
-1.51965

-0.825
4.312898
-0.36518
1.111245

4.921029

-0.82521
4.86173
3

-0.13928
4.312898

-2.83891

-2.19387

-1.41733

SENSEX
OPENIN
G
17365.37

SENSEX
CLOSIN
G
16357.96

SENSEX
RETURN(
%)
-5.80125848

BIRLA
(%)

HDFC
(%)

IDFC
(%)

-5.1

-4.0

-6.5

JP
MORGAN(
%)
-5.4

16339.32

16254.2

-0.52095191

0.1

-1.9

0.5

0.6

16255.33

17527.77

7.827832471

0.5

4.2

4.7

4.5

17555.04
17536.86
16942.82

17503.47
16666.4
17534.09

-0.29376179
-4.96360238
3.489796858

2.7
-4.6
5.5

1.9
0.8
6.7

-0.4
-2.5
7.3

2.3
-1.9
7.3

2010
July - 2010
Augest2010
September2010
October2010
November2010
December2010
Januray2011
February2011
March2011
April -2011
May 2011
June
2011
July - 2011
August
2011
September2011
October2011
November2011
December2011
AVERAGE
RETURN
STD DEV
SHARPE
RATIO

17679.34
17911.31

17992.00
18032.11

1.768504933
0.674434198

2.1
-1.2

2.3
2.8

2.2
-0.5

3.4
0.6

18215.28

19956.34

9.558239017

5.8

7.2

10.8

8.0

20094.11

19941.04

-0.76176551

-1.8

-1.3

-2.3

-0.6

20272.49

19405.1

-4.27865546

-2.3

-2.7

-3.6

-3.6

19529.99

20389.07

4.398773374

7.5

0.5

2.9

1.0

20621.61

18395.97

-10.7927558

-8.6

-9.7

-10.5

-10.7

18425.18

17700.91

-3.93087069

-4.6

-2.1

-1.2

-2.0

17982.28

19290.18

7.273271243

2.5

4.6

5.3

4.9

19463.11
19224.02
18527.12

19292.02
18232.06
18693.86

-0.87904759
-5.16000295
0.899977978

-2.3
-2.6
-0.4

0.6
-1.3
0.9

-1.4
-2.4
1.1

-0.5
-1.3
2.0

18974.96
18352.23

18209.52
16416.33

-4.0339479
-10.5485818

-2.0
-12.5

-2.0
-8.5

-2.2
-9.0

-1.3
-7.4

16585.1

16698.07

0.681153566

2.2

-0.2

-2.2

-2.5

16225.97

17804.8

9.730265741

10.5

6.8

9.6

6.6

17540.55

17008.34

-3.0341694

-5.4

-7.4

-7.7

-7.4

16555.93

15543.93

-6.11261343

0.1

-5.5

-5.4

-6.2

0.61707232

-0.579

0.3041666
7

-0.5583

-0.4

5.1044
72
0.2603
926
0.9547
712
1.1683
296
5.1044

4.60826
09
0.09674
7
1.09363
13

5.4581
345
0.2397
034
0.9689
969
0.8487
429
5.4581

5.666243
-0.02346

BETA
ALPHA
TRACKIN

5.666243

0.85713
83
4.60826

4.873442
-0.23597
1.046738
0.133081
4.873442

G ERROR
TREYNOR
RATIO

72
1.3921
311

09
0.40766
3

345
1.3501
936

-1.09865

Chapter - V: Findings,
Conclusions, and
Recommendations