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A

PROJECT REPORT
ON

“COMPARATIVE ANALYSIS OF
SELECTED EQUITY SCHEMES IN
MUTUAL FUNDS”
Conducted at HDFC Ltd. Chandigarh

Submitted in partial fulfillment of the requirements for the


two years full time Masters of Business Administration of
Punjab Technical University, Jalandhar
(Session-2008-09)

SUBMITTED BY
DALJEET SINGH SAINI
ROLL NO 7081222669
CERTIFICATE OF COMPLETION

This is to certify that Mr. DALJEET SINGH SAINI of MBA (4TH semester) has

successfully completed his project titled “Comparative Analysis of Selected

Equity Schemes in Mutual Funds” under the guidance of Professor Shipra

Pathak (Faculty IGCE). The project is in the partial fulfillment of his MBA

curriculum (2007-2009).

Dated Professor Shipra Pathak

(Project Guide)
DECLARATION

To

The Director

Gian Jyoti Institute of Management & Technology

Phase - 2, Mohali

Respected Sir,

I, the undersigned, hereby declare that the Summer Training Report entitled

“Comparative Analysis of Selected Equity Schemes in Mutual Funds”

submitted by me is a result of my own work under continuous guidance and kind

co-operation of my Project Guide, Mrs. Harpinder Kaur. I have not submitted this

training report to any other university for the award of any degree.

SIMRAN ARORA
ACKNOWLEDGEMENT

“Appreciation can make a day, even change a life. Your willingness to put it into

words is all that is necessary”.

Two months of training at HDFC Ltd. has been a great learning experience for

me. I express my gratitude to the company for extending this opportunity to me.

I truly acknowledge the cooperation and help made by Mr. PRABHUJEEV

SINGH BAJAJ, my project guide at HDFC Ltd, Chandigarh.

I take this opportunity to thank Mrs. HARPINDER KAUR, my course coordinator

and project incharge for her able guidance, continuous support and cooperation

throughout my project. I also thank Dr. MONIKA AGGARWAL for guiding my

judgment, constantly pushing the upper limits of my capabilities and encouraging

me to deliver more.

And I sincerely thank my family and friends for the constant support and help in

the successful completion of my project.

SIMRAN ARORA
TABLE OF CONTENTS

CHAPTER NO. TOPIC PAGE NO.

1 INTRODUCTION

1.1 INDUSTRY PROFILE

2 RESEARCH METHODOLOGY

3 FUND COMPARISON

4 COMPARATIVE ANALYSIS

5 CONCLUSION

6 SUGESSIONS

7 BIBLIOGRAPHY
EXECUTIVE SUMMARY

Mutual funds are a topic, which is of interest to both investors and academicians

all over the world. Mutual Funds as a medium-to-long term investment option are

preferred as a suitable investment option by investors. However, with so many

market entrants and a plethora of schemes available to the investors, the

question is the choice of mutual fund.

The study focuses on this problem of mutual fund selection by investors. It

involves performance evaluation of five mutual funds based on the evaluation

models: Sharpe, Standard Deviation, Alpha and Beta.

It is to be noted that while analyzing the performance of a mutual fund both

qualitative and quantitative measures should be considered. The performance

measures used in the study only depict the quantitative result based on the past

return and risk associated with it. And the other factors such as fund manager’s

background, experience and his style etc have not been taken in to

consideration.

This report starts with the basics on Mutual Funds and its present industry

scenario. Then, an overview of HDFC Ltd and HDFC Mutual Funds has been

given along with the study on performance evaluation of mutual funds.


CHAPTER-1

INTRODUCTION
INTRODUCTION
A Smart investor is the one who is able to correctly plan and decide in which

profitable and safe instrument to invest. To lock up one’s hard-earned money in

a savings bank account is not enough to counter the monster of inflation.

One has to look into various factors before deciding on the instruments in

which to invest. To save is not enough. One must invest wisely and get

maximum returns. A sound investment is one which gives the investor

reasonable returns after deducting outgo of tax as well as the invisible tax of

inflation.

The meaning of a mutual fund is a form of collective investment that pools

money from many investors and invests their money in stocks, bonds, short-

term money market instruments, and/or other securities. Mutual funds are

money-managing institutions set up to professionally invest the money pooled

in from the public. These schemes are managed by Asset Management

Companies (AMC), which are sponsored by different financial institutions or

companies.

In a mutual fund, the fund manager trades the fund's underlying securities,

realizing capital gains or losses, and collects the dividend or interest income.

The investment proceeds are then passed along to the individual investors. The

value of a share of the mutual fund, known as the net asset value per share

(NAV), is calculated daily based on the total value of the fund divided by the

number of shares currently issued and outstanding.


Mutual funds are one of the best investments ever created because they are

very cost effective and very easy to invest in. By pooling money together in a

mutual fund, investors can purchase stocks or bonds with much lower trading

costs than if they tried to do it on their own. A mutual fund is the ideal

investment vehicle for today’s complex and modern financial scenario.

Though still at a nascent stage, Indian MF industry offers a plethora of

schemes and serves broadly all type of investors. The range of products

includes equity funds, debt, liquid, gilt and balanced funds. There are also

funds meant exclusively for young and old, small and large investors.

Moreover, the setup of a legal structure, which has enough teeth to safeguard

investors’ interest, ensures that the investors are not cheated out of their hard-

earned money. All in all, benefits provided by them cut across the boundaries

of investor category and thus create for them, a universal appeal.

Investors of all categories could choose to invest on their own in multiple

options but opt for mutual funds for the sole reason that all benefits come in a

package.
CHAPTER-1.1

INDUSTRY
PROFILE
1.1.1 CONCEPT

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

share a common financial goal. The money thus collected is then invested in

capital market instruments such as shares, debentures and other securities.

The income earned through these investments and the capital appreciation

realized is shared by its unit holders in proportion to the number of units owned

by them.

For the individual investor, mutual funds provide the benefit of having someone

else manage your investments and diversify your money over many different

securities that may not be available or affordable to you otherwise. Today,

minimum investment requirements on many funds are low enough that even

the smallest investor can get started in mutual funds.

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.

A mutual fund, by its very nature, is diversified—its assets are invested in many

different securities. Beyond that, there are many different types of mutual funds

with different objectives and levels of growth potential, furthering your chances

to diversify.
1.1.2 WORKING OF A MUTUAL FUND

Investors pool their money with the fund manager and then the fund manager

invests the money in securities. These securities further generate returns. These

returns are then passed back to investors.


(i)

1.1.3 ORGANISATION OF A MUTUAL FUND

There are many entities involved and the diagram below illustrates the

organizational set up of a mutual fund:


1.1.4 MUTUAL FUND: RELATIONSHIP AMONGST

THE ENTITIES INVOLVED

SPONSOR

What a promoter to a company, a sponsor is to a mutual fund. “Sponsor” is

defined under SEBI Regulations as any person who is acting alone or in

combination with another body corporate, establishes a mutual fund. The

sponsor initiates the idea to set up a mutual fund. It could be registered

company, scheduled bank or financial institution.

In order to run a mutual fund in India, the sponsor has to obtain a license from

SEBI. For this, a sponsor has to satisfy certain conditions, such as on capital

track record (at least 5 years operation in financial services), default-free

dealings and a general reputation of fairness.


♦ TRUSTEES

Trustees are like internal regulators in a mutual fund, and their job is to protect

the interest of the unit holders. Trustees are appointed by sponsors, and can

either be individuals or corporate bodies. In order to ensure they are impartial

and fair, SEBI rules mandate that at least two third of the trustees be

independent i.e. not having any association with the sponsor.

Trustees float and market schemes and secure necessary approvals. They

check if the asset management company’s investments are within defined limits

and whether the fund’s assets are protected. Trustees can be held accountable

for financial irregularities in the mutual fund.

♦ ASSET MANAGEMENT COMPANY (AMC)

An Asset Management Company is the entity formed by the sponsor to run a

mutual fund. It’s the AMC that employs fund managers and analysts, and other

personnel. It’s the AMC that handles all operational matters of a mutual fund-

from launching schemes to managing them to interacting with investors. It also

exercises due diligence on investments, and submits quarterly reports to the

trustees. The people in the AMC who should matter the most to you are those

who take investment decisions. There is the head of the fund house, generally

referred to as Chief Executive Officer (CEO). Under him comes the Chief

Investment Officer (CIO), who shapes the fund’s investment philosophy, and

fund managers, who manages its schemes. A team of analysts, who track

market, sectors and companies, assists them.


♦ CUSTODIAN

A custodian handles the investment back office of a mutual fund. Its

responsibilities include receipt and delivery of securities, collecting income-

distributing dividends, segregating assets and settlement between schemes.

The sponsor of a mutual fund cannot act as a custodian to the mutual fund.

This condition, formulated in the interest of the investors, ensure that the assets

of a mutual fund are not in the hands of its sponsors.

♦ REGISTRAR

Registrar also known as Transfer Agents handles all investor related services.

This includes issuing and redeeming units, sending fact sheets and annual

reports. Some fund houses handle such functions in house, others outsource it

to registrar. Most mutual funds, in addition to registrar, also have investor

service centers of their own in some cities.


1.1.5 INDIAN MUTUAL FUND INDUSTRY- ITS

ORIGIN

The mutual fund industry in India started in 1963 with the formation of Unit Trust

of India, at the initiative of the Government of India and Reserve Bank the. The

history of mutual funds in India can be broadly divided into four distinct phases:

First Phase – 1964-87

An Act of Parliament established Unit Trust of

India (UTI) in 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. At the end of

1988 UTI had Rs.6, 700 crores of assets under management.

Second Phase – 1987-1993 (Entry of Public Sector Funds)

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

sector banks and Life Insurance Corporation of India (LIC) and General

Insurance Corporation of India (GIC).


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). 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)

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. It is 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.

The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It

is registered with SEBI and functions under the Mutual Fund Regulations. The

graph below illustrates the growth of assets over the years:


1.1.6 MUTUAL FUND INDUSTRY - RECENT TIMES

The Indian Mutual fund industry has witnessed a sea change in the way it

operates, in the regulatory and investor attitude towards Mutual fund products.

From a single player the number of players has increased to 30 and the

number of schemes has swelled to 640. The total assets under management

have risen to Rs 326,329 crores from Rs 231,045 Crores in March 2006.

Reliance claimed to be the leader with the largest AUM of Rs 46307 Crores as

of March 2007. Following was ICICI Prudential and UTI Mutual Fund with AUM

of Rs.37870 Crores and Rs.35488 Crores respectively. Standard Chartered

Mutual Fund had asset under management of Rs 11549 Crores.

Fixed maturity plans (FMP s) have been a popular in the past six months, may

be due to the rising interest rate scenario. The percentage of FMP of the total

industry corpus has also increased as compared to previous years.

According to a study AUM as a percentage of GDP in the developed nations

ranges from 30%-60% of GDP, whereas it is only 8% of GDP in India.

However, the emergence of India as a major investment destination is good for

the mutual fund industry as it is witnessing entry of big names like JP Morgan,

UBS, Aegon and AIG augurs well for the industry as not only these global

investment management firms bring with them the expertise gained

internationally but also bring the best international practices in terms of

performances and investor services which will benefit the industry in catching

up with the developed countries.


1.1.7 ROAD TO FUTURE

By December 2004, Indian mutual fund industry reached Rs 1,50,537 crores. It is

estimated that by 2010 March-end, the total assets of all scheduled commercial

banks should be Rs 40,90,000 crores. The annual composite rate of growth is

expected 13.4% during the rest of the decade. In the last 5 years we have seen

annual growth rate of 9%. According to the current growth rate, by year 2010,

mutual fund assets will be double.

Some facts for the growth of mutual funds in India

♦ 100% growth in the last 6 years.

♦ Numbers of foreign AMC’s are in the queue to enter the Indian markets like

Fidelity Investments, US based, with over US$1trillion assets under

management worldwide.

♦ Our saving rate is over 23%, highest in the world. Only channelizing these

savings in mutual funds sector is required.

♦ We have approximately 29 mutual funds which are much less than US having

more than 800. There is a big scope for expansion.

♦ 'B' and 'C' class cities are growing rapidly. Today most of the mutual funds

are concentrating on the 'A' class cities. Soon they will find scope in the

growing cities.

♦ SEBI allowing the MF's to launch commodity mutual funds.

♦ Emphasis on better corporate governance.


ADVANTAGES OF MUTUAL FUNDS

♦ Professional Management

Mutual Funds provide the services of experienced and skilled professionals,

backed by a dedicated investment research team that analyses the performance

and prospects of companies and selects suitable investments to achieve the

objectives of the scheme.

♦ Diversification

Mutual Funds invest in a number of companies across a Broad cross-section of

industries and sectors. This diversification reduces the risk because seldom do

all stocks decline at the same time and in the same proportion. You achieve this

diversification through a Mutual Fund with far less money than you can do on

your own.

♦ Convenient Administration

Investing in a Mutual Fund reduces paperwork and helps you avoid many

problems such as bad deliveries, delayed payments and follow up with brokers

and companies. Mutual Funds save your time and make investing easy and

convenient.

♦ Return Potential

Over a medium to long-term, Mutual Funds have the potential to provide a higher

return as they invest in a diversified basket of selected securities.


♦ Low Costs

Mutual Funds are a relatively less expensive way to invest compared to directly

investing in the capital markets because the benefits of scale in brokerage,

custodial and other fees translate into lower costs for investors.

♦ Liquidity

In open-end schemes, the investor gets the money back promptly at net asset

value related prices from the Mutual Fund. In closed-end schemes, the units can

be sold on a stock exchange at the prevailing market price or the investor can

avail of the facility of direct repurchase at NAV related prices by the Mutual Fund.

♦ Transparency

You get regular information on the value of your investment in addition to

disclosure on the specific investments made by your scheme, the proportion

invested in each class of assets and the fund manager's investment strategy and

outlook.

♦ Flexibility

Through features such as regular investment plans, regular withdrawal plans and

dividend reinvestment plans, you can systematically invest or withdraw funds

according to your needs and convenience.

♦ Well regulated

All Mutual Funds are registered with SEBI and they function within the provisions

of strict regulations designed to protect the interests of investors. The operations

of Mutual Funds are regularly monitored by SEBI.


DRAWBACKS OF MUTUAL FUNDS

♦ No Guarantees

There is no guarantee that the mutual fund will always do well and provide good

returns to its unit holders, as no investment is risk free. However, risk is

minimized to some extent by investing in mutual funds.

♦ Fees and Commissions

All funds charge administrative fees to cover their operational expenses. Some

funds also charge sales commissions or “loads” to compensate financial

consultants or planners, brokers etc.

♦ Taxes

Most actively managed funds sell anywhere from 20% to 70% of the securities in

their portfolio during a typical year. If the fund makes a profit on its sales, the

investor has to pay tax on the income he receives even if he reinvests the money

he made.

♦ Management risk

The risk that an investor is taking here is that someone else is managing his

money. He depends on the fund manager to make the right decision regarding

the portfolio. If the manager does not perform as one had hoped then the

investor may not make as much money as he had expected. Given these
drawbacks, if the fund is managed well by taking timely decisions whether to hold

or buy/sell stocks, the mutual fund is sure to build a reputation in the market.

BANKS V/S MUTUAL FUNDS

BANKS MUTUAL FUNDS

RETURNS Low Better

ADMINISTRATIVE
High Low
EXP.

RISK Low Moderate

INVESTMENT
Less More
OPTIONS

NETWORK High penetration Low but improving

LIQUIDITY At a cost Better

QUALITY OF ASSETS Not transparent Transparent

INTEREST Minimum balance between


Everyday
CALCULATION 10th. & 30th. Of every month

Maximum Rs.1 lakh on


GUARANTEE None
deposits
MUTUAL FUNDS - TYPES OF SCHEMES

Wide variety of Mutual Fund Schemes exists to cater to the needs such as

financial position, risk tolerance and return expectations etc. The table below

gives an overview into the existing types of schemes in the Industry:

Mutual Funds
(Types of Schemes)

By
By Load Other
Investment By Nature
Structure Schemes
Objective

♦Growth schemes ♦Open-Ended Schemes ♦Entry Load ♦ Tax-Saving

Schemes
♦ Income Schemes ♦ Close-Ended Schemes ♦ Exit ♦Fixed Maturity Plans

Load
♦Balanced Schemes ♦CDSC ♦ Index Schemes
♦ Physical Assets ♦ Hedge Funds
On the basis of Investment, mutual funds are classified as:

♦Equity/growth fund:

This is a scheme that invests only in equity. When investing in stocks, an investor

cannot be sure of the investment tenure or returns. As a thumb-rule, the longer a

stock is held, the higher the gains. An investor stands a better chance of a

substantial appreciation if he invests in stock-based funds.

The aim of growth funds is to provide capital appreciation in the value of

investment. Such schemes normally invest a majority of there corpus in equities.

It has been proven that returns from stocks ,have outperformed most other kind

of investment held over the long term. Growth funds concentrate on value

appreciation of securities and not on the regularity of income. However, the risk

involved in such funds is higher than the income funds.

The various types of equity schemes are as follows:

Equity Diversified Schemes


Diversification – Mutual funds reduce the risk by investing in all the sectors.

Instead of putting all your money in one sector or company it's better to invest in

various good performing sectors as you reduces the risk of getting involved in a

particular sector/company which may perform or may not. This is an ideal

category for those who want to participate in the stock market but have little

money to invest in blue chip stocks.

Sector fund

An equity scheme that invests in shares of companies operating in specific

industries is called a sector fund. For instance, a pharma fund would invest only

in pharmaceutical companies. Sector funds are risky as they are susceptible to

cyclical influences - it is unlikely that the market will favour a particular sector for

too long. These are schemes whose objective is to invest only in equity of those

companies which are existing in specific sector like FMCG, Banking, Telecom,

Oil etc. Sectoral Funds tend to have a very high risk reward ratio and investors

should be careful of investing all there money in these schemes.

Equity-linked savings schemes

The major portion of investment in ELSS schemes is in equity and offers 20 per

cent tax rebates under Section 88, subject to a maximum investment of Rs

10,000 annually. Dividends are tax-free. As an ELSS is linked to the market, it

can earn substantially more than other Section 88 schemes, which offer fixed

rates of return to a maximum of 11 per cent.


♦ Debt/Income fund:

This fund invests in fixed income instruments such as debentures (bonds) and

various money market instruments. The aim of income funds is to provide regular

and steady income to investors. The investments are made in stocks yielding

higher returns and capital appreciation is of small importance. Such funds

distribute the income earned by them periodically amongst the investors.

Bonds can be issued by companies or by the government (state or central).

Bonds are rated by independent credit rating agencies such as Crisil/CARE/

ICRA, which verify the company’s ability to honor its interest commitments.

The NAV of a debt fund does not fluctuate as much as that of an equity fund. The

conservative investors like to go for capital safety and this scheme is best for

them.

The various types of Debt Schemes are as follows:

Monthly Income Plans

These schemes are intended to give monthly income, but since mutual funds are

subject to market risk, they do not provide assured returns. Those who seek

monthly income should invest into this scheme. In the current scenario where

debt market is very volatile its better to invest in hybrid funds like MIP with

suitable time for capital appreciation.


Gilt fund

Gilts are securities issued by the central government and are said to carry

sovereign or minimal risk. Gilt schemes invest in government securities. Apart

from being the most liquid securities in the debt market, government securities

are eligible for liquidity support. Gilt funds invest in government securities and the

investors who want to avail the benefits of capital safety with government security

should invest into this scheme.

Money market mutual funds (MMMF)

This fund invests exclusively in money market instruments. These instruments

include treasury bills, government securities with an unexpired maturity of upto

one year, call or notice money, commercial paper, commercial bills accepted by

banks and certificate of deposits. These funds have a minimum lock-in period of

15 days. Those who are seeking income in short term investments of six-eight

months with more liquidity should invest in this scheme.

Liquid fund

A liquid fund is the same as a money market fund, but avoids a lock-in period.

Most of them lock funds in for up to three days to protect against banking

procedural inefficiencies. Used as an alternative to current account balances, a

liquid fund is ideally suited to investors who want to park their funds for a very

short time -- seven to eight days. The minimum investment in these funds is

Rs.25,000.
Junk Bond Schemes

Junk bond schemes invest in securities that are below investment grade. The

hope is that attractive returns in such poor-quality investments would more than

make up for the higher risk of losing the entire investment in some cases.

“High yield” bonds is a politically correct way of referring to junk bonds. SEBI

guidelines limit investment in unrated securities and securities that are below

investment grade to 25 percent of the net assets of any scheme. Therefore,

currently it is not yet possible to have a full-fledged junk bond scheme in India.

♦ Balanced fund:

Balanced schemes invest in both equity and debt, with 50-65 per cent in equity

and the rest in debt. It is important to know the stocks to bonds ratio in a fund to

understand the risks and rewards structure. The aim of balanced funds is to

provide growth and regular income. The debt investments ensure a basic interest

income, which the fund manager hopes to top up with capital gains on the

investment portfolio. However, losses can eat into the basic interest income and

capital.

♦ Physical assets:

Technically, mutual funds can invest in any asset. This includes real estate,

precious metals (gold, silver), other metals (aluminum, steel), oil and

commodities. The regulatory frame work in India however does not currently

permit Mutual Funds to invest in physical assets.


Mutual Funds are classified on the basis of their nature into:

♦ Open-end Schemes:

These are schemes that do not have a fixed maturity. The mutual fund ensures

liquidity by announcing sale and re-purchase prices for the units of such a

scheme on an ongoing basis. Investors who wish to exit from an open-end

scheme can offer their units to the mutual fund for redemption, generally called

re-purchase. These repurchase rates are based upon the net current assets

value of the fund. Thus, open-ended funds provide better liquidity to the

investors. Similarly, the mutual funds can sell new units to investors desirous of

participating in the scheme, generally called sale. Every such transaction results

in a change in the unit capital of the scheme. The unit capital increases, when

additional units are sold; and decreases if existing units are re-purchased.

♦ Close-end Schemes:

These are schemes that have a fixed maturity. Unlike open-ended funds the

corpus of close-ended funds is fixed and an investor can subscribe directly to the

scheme only at the time of initial issue. After the initial issue is closed, a person

can buy or sell the units of the scheme in the secondary market i.e. the stock

exchanges where these are listed. It is always easier to manage a close-ended

scheme as the fund managers can evolve long term investment strategies

depending upon the life of the scheme.

Other Schemes-
♦ Tax Saving Schemes:

Mutual funds may be designed to suit the tax payers. These schemes offer tax

rebates to the investors under specific provisions of the Indian Income Tax laws,

1961 as the Government offers tax incentives for investment in specified avenues.

Ex: equity linked saving schemes (ELSS). Pension schemes launched by the

mutual funds also offer tax benefits. These schemes ensure tax benefits to the

investors besides some income and small appreciation in value of units.

♦ Fixed Maturity Plans / Serial Schemes:

Fixed Maturity Plans seek to eliminate risk of capital loss by investing in a pre-

specified debt security. Thus, if an investor is desirous of investing for 4 years, he

can invest in a fund that will invest in a pre-specified 4-year security. On maturity,

the scheme would redeem the security and pay the investor. The investor however

can exit earlier.

Index Funds:

Index funds replicate the portfolio of a particular index such as BSE sensitive

index, NSE fifty index. These schemes invest in the securities in the same

weightage comprising an index. NAVs of such schemes will rise or fall in

accordance with rise or fall in the index, though not exactly in the same percentage

due to some factors known as “tracking error” in technical terms.

♦ Hedge Funds or Leveraged Funds:


Hedge funds are leveraged funds where the fund manager invests a mix of funds

belonging to its investors (unit capital and reserves) and funds from lenders

(borrowed funds). A leveraging of two would mean that for every Re 1 of unit

capital, an additional Rs 2 is borrowed, thus investing Rs 3 in the market.

Borrowed funds have interest and repayment obligations that are independent of

how the market performs. Thus, in bad market conditions, a non-leveraged fund

only needs to bear a loss a leveraged fund would also need to generate additional

resources to meet the interest and repayment obligations on borrowed funds.

On the basis of Load Structure,

Mutual Funds are classed into load and no-load funds. There are three basic types

of loads: front-end (entry), back-end (exit) and contingent deferred sales charge

(CDSC). Funds normally avoid charging loads at both ends. No-load funds do not

charge any load fees.

♦ Entry load:

Entry loads are charged at the time of buying into the fund. This is the resale price

or the price at which units can be bought after the initial offer period.

♦ Exit load:

An exit load is charged at the time of redeeming units from the scheme This price

is the repurchase or redemption price. An investor might find an exit load

preferable to an entry load as he can anticipate and counter the effects of the load.

♦ Contingent deferred sales charge:


A CDSC is imposed only under certain conditions. For instance, a debt fund could

charge a load of 0.5 per cent for investments of over Rs 50,000 redeemed within

six months. While most equity funds charge either entry or exit loads, most debt

funds, because of lower returns, charge only a CDSC.

On the basis of Geography,

♦ Country / Region funds:

Country funds invest in securities from a specific country or region. The underlying

belief is that the chosen country or region is expected to demonstrate superior

performance, which in turn would be favorable for the securities (equity or debt) of

that country.

♦ Offshore funds:

Offshore funds mobilize money from investors for investment outside their country.

FREQUENTLY USED TERMS

Net Asset Value (NAV):

Commonly written as NAV, Net Asset Value is the current value in rupees of a

single share in a mutual fund. It's the fund's assets minus its liabilities divided by
the number of outstanding shares. A fund's NAV is calculated at the end of each

business day. You can track a fund's NAV like you would the price of an

individual stock. If the NAV goes down over time, it's bad; if it goes up, it's good.

Sale Price:

The price at which Mutual Fund is willing to sell the units to investor is known as

sales price. An investor, who buys or invests, pays the sales price. It is also

called Offer Price. It may include a sales load.

Repurchase Price:

The price at which Mutual Fund is willing to buy the units back from the investor

is known is known as repurchase price. That is, the price at which investor can

sell his holdings to Mutual Fund. It is the price at which a close-ended scheme

repurchases its units and it may include a back-end load.

Redemption Price:

Redemption price is the price at which open-ended schemes repurchase their

units and close-ended schemes redeem their units on maturity. Such prices are

NAV related.

Systematic Investment Plan (SIP):

These are best suited for young people who have started their careers and need

to build their wealth. SIPs entail an investor to invest a fixed sum of money at

regular intervals in the Mutual fund scheme that the investor has chosen. An

investor opting for SIP in xyz Mutual Fund scheme will need to invest a certain
sum on money every month/quarter/half-year in the scheme. It is far better to

invest a small amount of money regularly, rather than save up to make one large

investment.

Systematic Withdrawal Plan (SWP):

These plans are best suited for people nearing retirement. In these plans, an

investor invests in a mutual fund scheme and is allowed to withdraw a fixed sum

of money at regular intervals to take care of his expenses.


CHAPTER-1.2

COMPANY
PROFILE
INTRODUCTION TO HDFC LIMITED

Helping Indians experience the joy of home ownership. The road to success is a

tough and challenging journey in the dark where only obstacles light the path.

However, success on a terrain like this is not without a solution. As we found out

nearly three decades ago, in 1977, the solution for success is customer

satisfaction. All you need is the courage to innovate, the skill to understand your

clientele and the desire to give them your best.

Today, nearly three million satisfied customers whose dream we helped realize,

stand testimony to our success.

Our objective, from the beginning, has been to enhance residential housing stock

and promote home ownership. Now, our offerings range from hassle-free home

loans and deposit products, to property related services and a training facility.

We also offer specialized financial services to our customer base through

partnerships with some of the best financial institutions worldwide.


HOUSING FINANCE SECTOR
Against the milieu of rapid urbanization and a changing socio-economic scenario,

the demand for housing has grown explosively. The importance of the housing

sector in the economy can be illustrated by a few key statistics. According to the

National Building Organization (NBO), the total demand for housing is estimated

at 2 million units per year and the total housing shortfall is estimated to be 19.4

million units, of which 12.76 million units is from rural areas and 6.64 million units

from urban areas. The housing industry is the second largest employment

generator in the country. It is estimated that the budgeted 2 million units would

lead to the creation of an additional 10 million man-years of direct employment

and another 15 million man-years of indirect employment.

Having identified housing as a priority area in the Ninth Five Year Plan (1997-

2002), the National Housing Policy has envisaged an investment target of Rs.

1,500 billion for this sector.

In order to achieve this investment target, the Government needs to make low

cost funds easily available and enforce legal and regulatory reforms.

BACKGROUND
HDFC was incorporated in 1977 with the primary objective of meeting a social

need – that of promoting home ownership by providing long-term finance to

households for their housing needs. HDFC was promoted with an initial share

capital of Rs.100 million.


HDFC or Housing Development Finance Corporation Limited, founded in

1977 by Hasmukhbhai Parekh, is an Indian company which is primarily in the

business of providing home loans.

BUSINESS OBJECTIVES
The primary objective of HDFC is to enhance residential housing stock in the

country through the provision of housing finance in a systematic and professional

manner, and to promote home ownership. Another objective is to increase the

flow of resources to the housing sector by integrating the housing finance sector

with the overall domestic financial markets.

ORGANISATIONAL GOALS

♦ To develop close relationships with individual households,

♦ To maintain its position as the premier housing finance institution in the country,

♦ To transform ideas into viable and creative solutions,

♦ To provide consistently high returns to shareholders, and


♦ To grow through diversification by leveraging off the existing client

base.

HDFC BANK LIMITED

The Housing Development Finance Corporation Limited (HDFC) was

amongst the first to receive approval from the Reserve Bank of India to set

up a bank in the private sector. The bank was incorporated in August 1994

in the name of HDFC Bank Limited, with its registered office in Mumbai.

HDFC MUTUAL FUND


HDFC Fund is a dominant player in the Indian mutual fund space,

recognized for its high levels of ethical and professional conduct and a

commitment towards enhancing investor interests.

HDFC STANDARD LIFE INSURANCE COMPANY LIMITED

HDFC and Standard Life first came together for a possible joint venture, to

enter the Indian Life Insurance market, in January 1995.

HLSIL

Home Loan Services India Private Limited is a wholly owned subsidiary of HDFC

Ltd. The company has been floated as a distribution arm of HDFC with an

objective of offering doorstep service to prospective clients of HDFC group.

HLSIL offers financial management solutions to individuals encompassing among

other products Home Loans, Life Insurance, Mutual Funds, Fixed Deposits and

property Solutions.

HDFC CHUBB GENERAL INSURANCE COMPANY LTD

With over one century of experience in the field of non-life insurance from Chubb

and HDFC's expertise from the financial segment, HDFC Chubb General

Insurance Company Limited has the consumer insight to make its product range

world class and comprehensive.


INTELENET GLOBAL SERVICES LIMTED

Two leading global investors - HDFC and Barclays - provide the financial backing

Intelenet needs to lead in a global marketplace. HDFC is India's leading financial

services conglomerate, while Barclays is a venerable financial services group

headquartered in the United Kingdom, ranking among the Top 10 banks in the

world based on market capitalization.

At the same time, their combined financial strength provides Intelenet with the

ability to remain on the cutting edge of BPO processes while simultaneously

maintaining corporate growth and achieving the goals and objectives set forth by

our customers.

HDFC REALTY

HDFC Realty is a new, organized electronic marketplace for properties. HDFC

Realty provides the entire gamut of real estate services, bringing together the

"clicks world" and the "bricks world" in a revolutionary and user-friendly way.

They are making available the best guidance and the most professional,

transparent, efficient service to the real estate customer.

HDFC SECURITIES LIMITED

HDFC Securities Ltd was promoted by the HDFC Bank & HDFC with the

objective of providing the diverse customer base of the HDFC Group and other

investors, a capability to transact in the Stock Exchanges & other financial


market transactions. HDFC Securities Ltd provides you with the necessary tools

to allocate, select and manage your investments wisely, and also support it with

the highest standards of service, convenience and hassle-free trading tools.

HDFC MUTUAL FUND

VISION

To be a dominant player in the Indian mutual fund space recognized for its high

levels of ethical and professional conduct and a commitment towards enhancing

investor interests.

INTRODUCTION

HDFC Mutual Fund has been one of the best performing mutual funds in the last

few years. HDFC Asset Management Company Limited (AMC) functions as an

Asset Management Company for the HDFC Mutual Fund.

AMC is a joint venture between housing finance giant HDFC and British

investment firm Standard Life Investments Limited. It conducts the operations of

the Mutual Fund and manages assets of the schemes, including the schemes

launched from time to time. As of Aug 2006, the fund has assets of Rs.25,892

crores under management.


IN 2003, following a decision by the Zurich Insurance Company (ZIC), the

Sponsor of Zurich India Mutual Fund, to divest its asset management business in

India, AMC had entered into an agreement with ZIC to acquire the asset

management business. Consequently, all the schemes of Zurich Mutual Fund in

India had been transferred to HDFC Mutual Fund and renamed as HDFC

schemes.
LIST OF HDFC MUTUAL FUNDS
HDFC ASSET MANAGEMENT COMPANY LIMITED
(AMC)

HDFC Asset Management Company Ltd (AMC) was incorporated under the

Companies Act, 1956, on December 10, 1999, and was approved to act as an

Asset Management Company for the HDFC Mutual Fund by SEBI vide its letter

dated June 30, 2000.

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 present shareholding pattern of the AMC is as follows:

PARTICULARS % OF THE PAID UP CAPITAL

HDFC Limited 50.10

Standard Life Investments Ltd. 49.90


Zurich Insurance Company (ZIC), the Sponsor of Zurich India Mutual Fund,

following a review of its overall strategy, had decided to divest its Asset

Management business in India. The AMC had entered into an agreement with

ZIC to acquire the said business, subject to necessary regulatory approvals.

The AMC is managing 3 close ended schemes viz.

♦ HDFC Fixed Investment Plan,

♦ HDFC Long Term Equity Fund and

♦ HDFC Fixed Maturity Plans

And 22 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 (formerly HDFC Tax Plan 2000)(HTP),

♦ 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 Tax Saver (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. (HPM) and

♦ HDFC Multiple Yield Fund - Plan 2005 (HMY2005)

The AMC is also providing portfolio management / advisory services and such

activities are not in conflict with the activities of the Mutual Fund.

HDFC Ltd provides a variety of investment services through varied types of

mutual funds to its customers. The following are some of the top mutual fund

schemes which HDFC is currently providing according to different investment

objectives-

♦ HDFC Growth Fund:

HDFC Growth fund is an open-ended growth scheme with the primary objective

of the scheme to generate long term capital appreciation from a portfolio that is

invested predominantly in equity and equity-related instruments.


Features:

Asset allocation: Equity and equity-related Instruments; 80%-100%

Debt securities, Money Market Instruments; 0%-20%

Plans / Options: Growth and Dividend. The dividend plan offers payout and re-

investment facility.

Minimum application amount:

• New investors: Rs. 5,000 and multiples of Rs. 100 thereafter.

• Existing Investors: Rs. 1,000 and in multiples of Rs. 100 thereafter.

Entry Load:

• An Entry load of 2.25% is payable in respect of each purchase if units are

less than Rs. 5 Crore in value.

• A no entry load is payable if the units purchased are equal to or greater

than 5 crore in value.

Exit Load: Nil

♦ HDFC Prudence Fund:

HDFC prudence fund scheme is an open-ended balance scheme. The

investment objective of this scheme is to provide periodic returns and capital

appreciation over a long period of time from a judicious mix of equity and debt

investments with an aim to prevent / minimize any capital erosion.


Features:

Asset allocation: Equity and equity-related Instruments; 40%-60%

Debt securities, Money Market Instruments; 60% - 40%

Plans / Options: Growth and Dividend. The dividend plan offers dividend payout

and re-investment facility.

Minimum application amount:

• New investors: Rs. 5,000 and multiples of Rs. 100 thereafter.

• Existing Investors: Rs. 1,000 and in multiples of Rs. 100 thereafter.

Entry Load:

• An Entry load of 2.25% is payable in respect of each purchase if units are

less than Rs. 5 Crore in value.

• A no entry load is payable if the units purchased are equal to or greater

than 5 crore in value.

Exit Load:

• An exit load of 1% is payable if units are redeemed / switched out within

one year from the date of allotment.

♦ HDFC Top 200 Fund:

HDFC Top 200 fund is an open-ended growth scheme; the primary objective of

the scheme to generate long term capital appreciation from a portfolio of equity

and equity-related instruments primarily drawn from the companies in BSE 200

index.
Features:

Asset allocation: Equity and equity-related Instruments; Up to 100%

Debt and Money Market Instruments; not more than 20%

Plans / Options: Growth and Dividend. The dividend plan offers dividend re-

investment facility.

Minimum application amount:

• New investors: Rs. 5,000 and multiples of Rs. 100 thereafter.

• Existing Investors: Rs. 1,000 and in multiples of Rs. 100 thereafter.

Entry Load:

• An Entry load of 2.25% is payable in respect of each purchase if units are

less than Rs. 5 Crore in value.

• A no entry load is payable if the units purchased are equal to or greater

than 5 crore in value.

Exit Load: Nil

♦ HDFC Long Term advantage Fund and Tax Saver:

HDFC Long Term advantage fund and Tax Saver; is an open-ended equity linked

savings schemes with the lock in period of 3 years.

Features:

Investment Objective:

HDFC long-term advantage fund: The primary objective of the scheme is to

generate long-term capital appreciation from a portfolio that is invested

predominantly in equity and equity-related instruments.


HDFC Tax Saver: The primary objective of the scheme is to achieve long-term

growth of capital.

Plans / Options: Growth and Dividend. The dividend plan offers dividend payout

and re-investment facility.

Minimum application amount:

• For new and existing investors: Rs. 500 and in multiples of Rs. 500

thereafter.

Entry Load:

• An Entry load of 2.25% is payable in respect of each purchase if units are

less than Rs.5 Crore in value.

• A no entry load is payable if the units purchased are equal to or greater

than 5 crore in value.

Exit Load: Nil

♦ HDFC Equity Fund:

HDFC equity fund is an open-ended growth scheme; the primary objective of the

scheme to achieve capital appreciation

Features:

Plans / Options: Growth and Dividend. The dividend plan offers dividend payout

and re-investment facility.

Minimum application amount:

• New investors: Rs. 5,000 and multiples of Rs. 100 thereafter.

• Existing Investors: Rs. 1,000 and in multiples of Rs. 100 thereafter.


Entry Load:

• An Entry load of 2.25% is payable in respect of each purchase if units are

less than Rs.5 Crore in value.

• A no entry load is payable if the units purchased are equal to or greater

than 5 crore in value.

Exit Load: Nil

♦ HDFC Capital Builder Fund:

HDFC Capital Builder fund is an open-ended growth scheme; the primary

objective of the scheme to achieve capital appreciation in the long term.

Features:

Plans / Options: Growth and Dividend. The dividend plan offers dividend payout

and re-investment facility.

Minimum application amount:

• New investors: Rs. 5,000 and multiples of Rs. 100 thereafter.

• Existing Investors: Rs. 1,000 and in multiples of Rs. 100 thereafter.

Entry Load:

• An Entry load of 2.25% is payable in respect of each purchase if units are

less than Rs. 5 Crore in value.

• A no entry load is payable if the units purchased are equal to or greater

than 5 crore in value.

Exit Load: Nil


♦ HDFC Index Fund:

HDFC index fund is an open-ended index linked scheme;

Features:

Plans / Options: This scheme has three plans; Nifty Plan, Sensex plan and

Sensex Plus Plan. At present, each plan offers growth option only.

Minimum application amount:

• New investors: Rs. 5,000 and multiples of Rs. 100 thereafter.

• Existing Investors: Rs. 1,000 and in multiples of Rs. 100 thereafter.

Entry Load: Nil

Exit Load:

• An exit load of 1% is payable if units are redeemed / switched out within

one year from the date of allotment if the purchase / switch in of units are

less than Rs.5 Lacs.

• No exit load is payable if the purchase / switch in of units are equal to or

greater than Rs.5 Lacs.

♦ HDFC Balanced Fund:

HDFC balanced fund is an open-ended balanced scheme; the primary objective

of the scheme to generate capital appreciation along with current income from

the combine portfolio of equity -equity related instruments and debt – money

market instrument.
Features:

Plans / Options: Growth and Dividend. The dividend plan offers dividend payout

and re-investment facility.

Minimum application amount:

• New investors: - Rs. 5,000 and multiples of Rs. 100 thereafter.

• Existing Investors: - Rs. 1,000 and in multiples of Rs. 100 thereafter.

Entry Load:

• An Entry load of 2.25% is payable in respect of each purchase if units are

less than Rs.5 Crore in value.

• A no entry load is payable if the units purchased are equal to or greater

than 5 crore in value.

Exit Load: Nil.


CHAPTER-2

RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY

RESEARCH PROBLEM

In this project, I have tried to study the performance of certain Mutual Fund

schemes on the basis of their returns, risk and performance. This performance

study of mutual funds utilizes the four quantitative performance measures based

on past records.

OBJECTIVES OF THE STUDY

♦ To evaluate the performance of the five equity schemes selected

for the study.

♦ To find out the risk and return level of selected equity diversified mutual funds.

♦ To give a comparative and descriptive analysis of the portfolios and

top holdings these funds.

♦ To know which one of the selected equity scheme is doing very well and which is

the best to invest in.

DATA SOURCE

In order to achieve the various stated objectives secondary data available on the

subject was used and other necessary information has been collected from the

HDFC Ltd. Mandi and other Mutual Fund Houses, newspapers, journals,

magazines etc.
TOOLS APPLIED

Data collected from various secondary sources was used for comparing the

Mutual fund schemes using Sharpe ratio, Standard Deviation, Beta and Alpha

value measures of risk and performance of mutual funds.

STANDARD DEVIATION

Standard Deviation is a measure that allows you to evaluate the volatility of the

funds. Put differently it allows you to measure the consistency of the returns.

Volatility is often a direct indicator of the risk taken by the fund. The Standard

Deviation of a fund measures this risk by measuring the degree to which the fund

fluctuates in relation to its average return over a period of time.

A security that is volatile is also considered higher in risk because its

performance may change quickly in either direction at any moment.

SHARPE RATIO

It is a ratio developed by Bill Sharpe to measure risk-adjusted performance.

Sharpe ratio is the returns generated by a fund over and above risk free rate of

return and the total risk associated with it (standard deviation).

As standard deviation represents the total risk experienced by a fund, the Sharpe

ratio reflects the returns generated by undertaking all possible risks. A higher

Sharpe ratio is therefore better as it represents a higher return generated per unit
of risk. It is calculated by subtracting the risk free rate from the rate of return for a

portfolio and dividing the result by the standard deviation of the portfolio returns.

This ratio tries to quantify how a fund performs relative to the risk it takes.

BETA

Beta is a statistical measure that shows how sensitive a fund is to market moves.

It compares a fund's volatility against the sensex. The beta value for an index

itself is taken as one. Therefore, if a fund has a beta higher than value 1, it

means it's moving up and down more than the rest of the market.

A fund with a beta greater than 1 is considered more volatile than the market,

and a fund with a beta less than 1 means less volatile.

Investors dream of stocks that enjoy positive beta whenever the market goes up,

and negative beta whenever the market goes down.

ALPHA

Alpha is a measure of the difference between a fund's expected return and its

real return. While analyzing the performance of a fund, we would like to know

how much was attributable to the market as a whole, and how much due to

manager’s ability to select stocks. Alpha can be seen as a measure of a fund

manager's performance. This is what the fund has earned over and above what it

was expected to earn. Thus, this is the value added by the fund manager's

investment decisions.

A high alpha (more than 1) is a good thing. A negative alpha means the fund is

under performing.
In this report, an attempt has been made to compare the various selected equity

diversified schemes. The schemes selected for comparison are open ended

equity schemes of various Mutual fund houses.

The various mutual fund schemes (equity diversified) which have been

selected for comparison are:

♦ HDFC Equity Fund

♦ Reliance Vision Fund

♦ Franklin India Prima Plus

♦ SBI Magnum Contra Fund

♦ DSP Merrill Lynch Top 100 Equity Fund

The comparison of the funds has been done on the basis of following

parameters:

♦ PORTFOLIO

The sub parameters to be considered under portfolio are-

Market Capitalization

Portfolio Turnover

Asset under Management


Sectoral Holdings.

♦ RETURNS

NAV

1 year

3 year

Returns since inception

♦ RISK AND VOLATILITY

The sub parameters for analysis are:

Standard Deviation

Sharpe Ratio

Beta

Alpha

♦ ENTRY LOAD, EXIT LOAD, BENCHMARK, INVESTMENT STYLE.


CHAPTER-3

FUND
COMPARISON
1. HDFC EQUITY FUND - GROWTH

FUND OBJECTIVE:
The scheme is aimed at generating long-term capital appreciation by

predominantly investing in equity oriented securities.

FUND STYLE:

Investment style of the manager is growth pattern. The

capitalization of fund is categorized as large.

FUND DETAILS:

ASSET MANAGEMENT COMPANY HDFC Asset Management Ltd.

LAUNCH DATE December, 1994

FUND MANAGER Chandresh Nigam

TYPE OF SCHEME Open-Ended

NATURE OF SCHEME Equity

STYLE OF INVESTMENT Large Cap

TOTAL ASSETS (RS. IN CRORES) 4517 (29/06/ 2007)

BENCHMARK INDEX BSE 100


• Amt. Bet. 0 to 49999999 - 2.25%
ENTRY LOAD
Amt. greater than 50000000 - 0%
EXIT LOAD 0%
PORTFOLIO CHARACTERISTICS:

Asset Allocation
As on 30/06/07 % Net Assets
Equity 98.76
Debt 0.00
Others 1.24

Asset Allocation
98.76
100
80
60
40 % Net Assets

20 1.24
0
0
Debt

Others
Equity

MARKET CAPITALISATION % OF PORTFOLIO


Giant 33.94

Large 13.41

Mid 45.10

Small 4.91
SECTORAL ALLOCATION:

As on 30/06/07 % NET ASSETS


Computers - Software & Education 11.76
Diversified 10.21
Pharmaceuticals 9.92
Electricals & Electrical Equipments 9.42
Banks 7.5
Entertainment 6.94
Oil & Gas, Petroleum & Refinery 6.81
Finance 6.06
Auto & Auto ancillaries 5.95
Electronics 5.11

Com puters
6% 15%
7% Diversified
Pharm aceuticals
8%
13% Electricals
Banks
Entertainm ent
9% Oil & Gas
Finance
9% 12% Autom obiles
9% 12% Electronics
TOP 10 HOLDINGS:

COMPANY % NET ASSETS

Crompton Greaves Ltd 5.33

Larsen & Toubro Ltd 5.23

Amtek Auto Ltd 4.52

Reliance Industries Ltd 4.33

Punj Lloyd Ltd. 4.23

Bharat Heavy Electricals Ltd 4.09

Infosys Technologies Ltd 3.6

State Bank of India 3.49

CMC Ltd 3.28

Divis Laboratories Limited 3.25

PERFORMANCE:
(20/07/07)

LAST 1 LAST 3 SINCE


YEAR YEARS INCEPTION
HDFC EQUITY
55.74 53.24 25.41
FUND–GROWTH (%)
2. RELIANCE VISION – GROWTH
FUND OBJECTIVE:

The scheme aims to generate capital appreciation by primarily investing in growth

oriented stocks.

FUND STYLE:

Investment style of the manager is growth pattern.

The capitalization of fund is categorized as large.

FUND DETAILS:

ASSET MANAGEMENT COMPANY Reliance Capital Asset Management Ltd.


LAUNCH DATE October, 1995
FUND MANAGER Kunj Bansal
TYPE OF SCHEME Open-Ended
NATURE OF SCHEME Equity-Diversified
STYLE OF INVESTMENT Large Cap
TOTAL ASSETS (RS. IN CRORES) 3103.37 (29/06/ 2007)
BENCHMARK INDEX BSE 100
• Amt. Bet. 0 to 19999999 - 2.25%
ENTRY LOAD Amt. Bet. 20000000 to 49999999 -1.25%
Amt. greater than 50000000 - 0%
If redeemed bet. 0 to 6 Months;
& Amt. Bet. 0 to 49999999 - 1%
EXIT LOAD If redeemed bet. 6 to 12 Months;
& Amt. Bet. 0 to 49999999 - 0.5%
Amt. greater than 50000000 - 0%.
PORTFOLIO CHARACTERISTICS:

Asset Allocation
As on 30/06/07 % Net Assets
Equity 86.4
Debt 0.00
Others 13.6

Asset Allocation

100 86.4
80
60
40 % Net Assets
13.6
20
0
0
Debt

Others
Equity

MARKET CAPITALISATION % OF PORTFOLIO


Giant 37.70

Large 22.08

Mid 32.73

Small 7.49

SECTORAL ALLOCATION:
As on 29/07/07 % NET ASSETS
Diversified 14.24
Computers - Software & Education 10.31
Pharmaceuticals 8.48
Auto & Auto ancillaries 6.45
Power Gen., Transmission & Equip 5.89
Banks 5.49
Telecom 4.50
Electronics 4.50
Miscellaneous 3.71
Housing & Construction 3.58

Diversified
6% 5%
20% Com puters
7%
Pharm aceuticals
7% Autom obiles
Pow er
Banks
Telecom
8% 15% Electronics
Miscllaneous
9%
13% Construction
10%

TOP 10 HOLDINGS:
COMPANY % NET ASSETS
Divis Laboratories Ltd 8.48

Larsen & Toubro Ltd 5.67

Reliance Industries Ltd 5.60

Infosys Technologies Ltd 5.59

Alstom Projects India Ltd 4.65

Reliance Communication Ventures Ltd 4.50

Siemens Ltd 4.50

HDFC Bank Ltd 3.70

Jai Prakash Associates Ltd 3.58

Grasim Industries Ltd 2.97

PERFORMANCE:
(20/07/07)

LAST 1 LAST 3 SINCE


YEAR YEARS INCEPTION
RELIANCE VISION –
56.88 53.04 29.7
GROWTH (%)
3. FRANKLIN INDIA PRIMA PLUS – GROWTH

FUND OBJECTIVE:
The scheme aims to provide growth of capital and regular dividend from a portfolio

of equity, debt and money market instruments and focusing on wealth creating

companies across all sectors.

FUND STYLE:

Investment style of the manager is growth pattern. The

capitalization of fund is categorized as large.

FUND DETAILS:
Franklin Templeton Asset Management
ASSET MANAGEMENT COMPANY
(India) Pvt. Ltd.
LAUNCH DATE September, 1994

FUND MANAGER Sukumar Rajah

TYPE OF SCHEME Open-Ended

NATURE OF SCHEME Equity Diversified

STYLE OF INVESTMENT Large Cap

TOTAL ASSETS (RS. IN CRORES) 1290 (29/06/ 2007)

BENCHMARK INDEX BSE 100


Amt. Bet. 0 to 49999999 - 2.25%
ENTRY LOAD
Amt. greater than 50000000 - 0%
If redeemed bet. 0 to 6 Months - 1%
EXIT LOAD If redeemed bet. 6 to 12 Months - 0.5%
PORTFOLIO CHARACTERISTICS:

Asset Allocation
As on 30/06/07 % Net Assets
Equity 93.33
Debt 0.01
Others 6.67

Asset Allocation
93.33
100
80
60
40 % Net Assets

20 6.67
0.01
0
Debt

Others
Equity

MARKET CAPITALISATION % OF PORTFOLIO


Giant 33.81

Large 39.09

Mid 25.31

Small 1.79

SECTORAL ALLOCATION:
As on 29/06/07 % NET ASSETS
Diversified 13.04
Banks 11.06
Entertainment 10.70
Telecom 8.69
Finance 8.40
Computers - Software & Education 7.15
Auto & Auto ancillaries 6.59
Electronics 3.57
Paints 3.48
Housing & Construction 3.36

Diversified
5% 4%
5% 17% Banks
Entertainm ent
9%
Telecom
15% Finance
Com puters
Autom obiles
9%
Electronics
Paints
11% 14% Construction
11%
TOP 10 HOLDINGS:

COMPANY % NET ASSETS

Bharati Tele – Ventures 5.44

Reliance Industries Ltd 4.63

Infosys Technologies Ltd 4.61

Motor Industries Co (MICO) 4.45

Kotak Mahindra Bank Ltd 4.38

Television Eighteen India Ltd 4.35


Housing Development Finance
4.20
Corporation Ltd (HDFC)
Siemens Ltd 3.57
Infrastructure Development Finance
3.49
company
Zee Telefilms Ltd 3.33

PERFORMANCE:
(20/07/07)

LAST 1 LAST 3 SINCE


YEAR YEARS INCEPTION
FRANKLIN INDIA
63.88 50.48 24.25
PRIMA PLUS (%)

4. SBI MAGNUM CONTRA FUND


FUND OBJECTIVE:

The scheme aims to provide the investors maximum growth opportunity through

equity investments in stocks of growth oriented sectors.

FUND STYLE:

Investment style of the manager is a blend between

growth and value. The capitalization of the fund is

categorized as large.

FUND DETAILS:

ASSET MANAGEMENT COMPANY SBI Funds Management Pvt. Ltd


LAUNCH DATE July, 1999

FUND MANAGER Pankaj Gupta

TYPE OF SCHEME Open-Ended

NATURE OF SCHEME Equity Diversified

STYLE OF INVESTMENT Large Cap

TOTAL ASSETS (RS. IN CRORES) 1837.0 (29/06/ 2007)

BENCHMARK INDEX BSE 100


• Amt. Bet. 0 to 49999999 - 2.25%
ENTRY LOAD
Amt. greater than 50000000 - 0%
If redeemed bet. 0 to 6 Months;
EXIT LOAD & Amt. Bet. 0 to 49999999 - 1%
Amt. greater than 50000000 - 0%

PORTFOLIO CHARACTERISTICS:

Asset Allocation
As on 29/06/07 % Net Assets
Equity 90.05
Debt 4.48
Others 5.47

Asset Allocation

100 90.05
80
60
40 % Net Assets

20 4.48 5.47
0
Debt

Others
Equity

MARKET CAPITALISATION % OF PORTFOLIO


Giant 27.54

Large 26.10

Mid 39.43

Small 6.93

Tiny 1.09

SECTORAL ALLOCATION:

As on 29/06/07 % NET ASSETS


Diversified 10.43
Housing & Construction 8.03
Auto & Auto ancillaries 7.88
Electricals & Electrical Equipments 7.23
Pharmaceuticals 6.19
Steel 6.09
Banks 5.75
Engineering & Industrial Machinery 5.48
Oil & Gas, Petroleum & Refinery 5.16
Cement 4.32

Diversified
6% 16%
8% Construction
Automobile
8%
12% Electricals
Pharmaceuticals
Steel
Banks
9%
Engineering
12% Oil & Gas
9%
9% 11% Cem ent

TOP 10 HOLDINGS:

COMPANY % NET ASSETS

Reliance Industries Ltd 4.84


Jaiprakash Associates Ltd 4.34

Praj Industries Ltd 3.99

Bharat Heavy Electricals Ltd (BHEL) 3.79

State Bank Of India 3.52

Crompton Greaves Ltd 3.44

Hindustan Zinc Ltd 3.30

Welspun-Gujarat Stahl Rohen Ltd 3.19

Mahindra & Mahindra Ltd 2.84


Zee Entertainment Enterprises Ltd. 2.53

PERFORMANCE:
(20/07/07)

LAST 1 LAST 3 SINCE


YEAR YEARS INCEPTION
SBI MAGNUM
61.72 67.56 35.19
CONTRA FUND (%)

5. DSP MERRILL LYNCH TOP 100 EQUITY FUND -


GROWTH

FUND OBJECTIVE:
The Fund is seeking to generate capital appreciation, from a portfolio that largely

consists of equity and equity related securities of the 100 largest corporates, by

market capitalization, listed in India.

FUND STYLE:

Investment style of the manager is a blend between

growth and value. The capitalization of the fund is

categorized as large.

FUND DETAILS:

ASSET MANAGEMENT COMPANY DSP Merrill Lynch Fund Managers Ltd


LAUNCH DATE February, 2003

FUND MANAGER Apoorva Shah

TYPE OF SCHEME Open-Ended

NATURE OF SCHEME Equity Diversified

STYLE OF INVESTMENT Large Cap

TOTAL ASSETS (RS. IN CRORES) 438.7 (29/06/ 2007)


BENCHMARK INDEX BSE 100
Amt. Bet. 0 to 49999999 - 2.25%
ENTRY LOAD
Amt. greater than 50000000 - 0%
EXIT LOAD 0%

PORTFOLIO CHARACTERISTICS:

Asset Allocation
As on 30/06/07 % Net Assets

Equity 92.28

Debt 2.55

Others 5.17

Asset Allocation
MARKET CAPITALISATION % OF PORTFOLIO
Giant
100 92.28 52.46

80
Large 36.00
60
Mid 11.54
40 % Net Assets
Small N.A
20 2.55 5.17
0
Debt

Others
Equity

SECTORAL ALLOCATION:

As on 29/06/07 % NET ASSETS


Oil & Gas, Petroleum & Refinery 12.92
Computers - Software & Education 12.63
Banks 11.61
Diversified 10.06
Finance 7.63
Telecom 5.32
Power Gen., Transmission & Equip 5.11
Electricals & Electrical Equipments 5.00
Pharmaceuticals 4.90
Housing & Construction 4.73

Oil & Gas


6% 6% 15% Com puters
6% Banks
6% Diversified
16%
Finance
Telecom
Pow er
7% Electricals
10% Pharmaceuticals
15% Construction
13%

TOP 10 HOLDINGS:

COMPANY % NET ASSETS

Bharati Tele – Ventures 5.32

Reliance Industries Ltd 4.45

Reliance Petroleum Ltd 4.37

Larsen & Toubro Limited 4.27

Infosys Technologies Ltd 4.19

Bharat Electronics Ltd 3.95

HCL Technologies Ltd 3.92


Housing Development Finance
3.67
Corporation Ltd (HDFC)
Satyam Computer Services Ltd 3.52

State Bank of India (SBI) 3.28

PERFORMANCE:
(20/07/07)

LAST 1 LAST 3 SINCE


YEAR YEARS INCEPTION
DSPML TOP 100
EQUITY FUND - 59.60 50.77 54.47
GROWTH (%)
CHAPTER-4

COMPARATIVE
ANALYSIS
RATING ON THE BASIS OF RISK ADJUSTED

RETURN:

Return alone should not be considered as the basis of measurement of the

performance of a mutual fund scheme, it should also include the risk taken by the

fund manager because different funds will have different levels of risk attached to

them. Risk associated with a fund, in a general, can be defined as variability or

fluctuations in the returns generated by it. The higher the fluctuations in the returns

of a fund during a given period, higher will be the risk associated with it. Therefore,

the schemes have been rated on the basis of the risk associated with their returns.

♦ STANDARD DEVIATION

The Total Risk of a given fund is measured in terms of standard deviation of

returns of the fund. It gives you a 'quality rating' of an average. The Standard

Deviation is the amount by which the numbers that go into an average deviate from

that average. In other words, standard deviation tells us how much the values have

deviated from the average of the values.

It is a comprehensive risk measure that considers both market return and company

return. A higher value of standard deviation means higher risk. But higher standard

deviation does not mean that fund is a bad fund in comparison to fund having

lesser standard deviation. If the fund is giving more returns with higher standard

deviation than the other fund having low returns, then higher standard deviation

does not matter much.

Variation = b = ∑ (return-mean) 2
Standard deviation = σ = √b

HDFC RELIANCE FRANKLIN SBI DSPML

EQUITY VISION INDIA MAGNUM TOP 100

FUND PRIMA PLUS CONTRA

STANDARD 5.66
5.34 5.80 5.58 6.31
DEVIATION

6.4 6.31
STANDARD DEVIATION
6.2
STANDARD DEVIATION

6
5.8
5.8 5.66
5.58
5.6
5.34
5.4

5.2

4.8
HDFC Equity Reliance Vision Franklin India SBI Magnum DSPML Top 100
Prim a Plus Contra

FUNDS
ANALYSIS

A higher value of standard deviation means higher risk. A high Standard Deviation

may be a measure of volatility, but it does not necessarily mean that such a fund is
worse than the one with a low Standard Deviation. If the first fund is a much higher

performer than the second one, the deviation will not matter much.

# The highest standard deviation amongst all the equity diversified funds is that of

SBI Magnum Contra. This fund falls in the category of high risk and high returns.

# Reliance Vision is having average risk associated with it.

# HDFC Equity Fund is having the least risk associated with it in comparison to all

other schemes and thus, it is considered as one of the most stable returns giving

fund.

♦ SHARPE RATIO
It is a ratio developed by Bill Sharpe to measure risk-adjusted performance. It is

calculated by subtracting the risk free rate from the rate of return for a portfolio and

dividing the result by the standard deviation of the portfolio returns.

This ratio tries to quantify how a fund performs relative to the risk it takes. It is a

ratio of returns generated by the fund over and above risk free rate of return and

the total risk associated with it (standard deviation). Symbolically it is written as

SI = (Ri - Rf)
σ
Where SI = Sharpe Index

Ri = Return on the fund

Rf = Risk free rate of return

σ = Standard Deviation

HDFC RELIANCE FRANKLIN SBI DSPML

EQUITY VISION INDIA PRIMA MAGNUM TOP 100

FUND PLUS CONTRA

SHARPE 0.63 0.60 0.57 0.67 0.56


0.68 0.67

0.66
0.64 0.63

0.62
0.6
SHARPE

0.6
SHARPE
0.58 0.57
0.56
0.56
0.54
0.52
0.5
HDFC Equity Reliance Vision Franklin India SBI Magnum DSPML Top 100
Prim a Plus Contra

FUNDS

ANALYSIS

At times high returns are generally associated with a high degree of volatility. We

accept this volatility only because we want higher returns. The Sharpe ratio

represents this trade off between risk and returns. A higher Sharpe ratio is

therefore better as it represents a higher return generated per unit of risk.

# SBI Magnum Contra is having the highest Sharpe ratio of 0.67 followed by HDFC

Equity Fund with 0.63 and Reliance Vision with 0.60.

# It implies that SBI Magnum Contra gives highest returns against per unit of risk in

comparison to the other schemes.


♦ BETA

Beta is a measure of risk that, when applied to investment portfolios, provides

useful statistical information. It is a statistical measure that shows how sensitive a

fund is to market moves. It compares a fund's volatility against the sensex. The

beta value for an index itself is taken as one. Therefore, if a fund has a beta higher

than value 1, it means it's moving up and down more than the rest of the market.

A fund with a beta greater than 1 is considered more volatile than the market, and

a fund with a beta less than 1 means less volatile.

If, for example, a fund has a beta of 1.03 in relation to the BSE sensex, the fund

has been moving 3% more than the index. Therefore, if the BSE Sensex increased

10% the fund would be expected to increase 10.30%.

Investors dream of stocks that enjoy positive beta whenever the market goes up,

and negative beta whenever the market goes down. In other words, Investors

expecting the market to be bullish may choose funds exhibiting high betas, which

increase investors’ chances of beating the market. If the investor expects the

market to be bearish in the near future, the funds that have betas less than 1 are a

good choice because they would be expected to decline less in value than the

index.
HDFC RELIANCE FRANKLIN SBI MAGNUM DSPML

EQUITY VISION INDIA PRIMA CONTRA TOP 100

FUND PLUS

BETA 0.87 0.90 0.89 0.93 0.96

0.98
0.96
0.96
0.94 0.93

0.92
0.9
BETA

0.9 0.89 BETA


0.88 0.87

0.86
0.84
0.82
HDFC Equity Reliance Vision Franklin India SBI Magnum DSPML Top 100
Prim a Plus Contra

FUNDS
ANALYSIS

It is a measure of systematic risk and compares the sensitivity of value of a

security with the movement in the market. In this analysis the standard for “Beta” is

taken as ranging from 0.5 to 1.0. The reason being “Beta” above 1 represents the

movement of fund being aggressive with the movement of market. This holds

irrespective of the direction of movement of the market. Safety being important, it is

better to invest in a fund having beta less than one. So that if the market falls then

your fund will fall less than the market.

# We can see that

the betas of nearly all the funds are similar apart from beta of DSPML Top 100,

followed by SBI Magnum Contra. This implies that these funds are very volatile.

# The movement of DSPML Top 100 which is nearing 1 with a value of 0.96 will be

almost in sync with the movement of the market.


♦ ALPHA

Alpha is a measure of the difference between a fund's expected return and its real

return. Alpha must be evaluated in the context of a fund's beta (volatility) and R-

squared (benchmark index).

Alpha can provide a deeper perspective on the performance of equity schemes to

a mutual fund investor. While analyzing the performance, we would like to know

how much was attributable to the market as a whole, and how much due to

manager’s ability to select stocks. Value added by the manager indicates (or

alpha) indicates the return that is not attributable to the market, or in other words,

the added value the manager achieved over and above the result of the market.

A high alpha (more than 1) is a good thing. A negative alpha means the fund is

under performing.

HDFC RELIANCE FRANKLIN SBI MAGNUM DSPML

EQUITY VISION INDIA CONTRA TOP 100

FUND PRIMA PLUS

ALPHA 1.01 1.00 0.77 1.67 0.55


1.8 1.67
1.6
1.4
1.2
1.01 1
ALPHA

1
0.77 ALPHA
0.8
0.55
0.6
0.4
0.2
0
HDFC Equity Reliance Vision Franklin India SBI Magnum DSPML Top 100
Prim a Plus Contra

FUNDS

ANALYSIS

A positive alpha implies that a fund has performed better than expected, given its

level of risk. In other words, it measures the gap between the funds expected

return and its actual return. So higher the alpha, better are the returns.

# SBI Magnum Contra has the highest alpha of 1.67. It indicates that the fund

manager has efficiently distributed the funds in a diversified portfolio.

# Followed by SBI Magnum Contra, is HDFC Equity Fund with an alpha of 1.01.
# The lowest alpha is of DSPML Top 100 being 0.55; while the beta of this fund is

the maximum.

RATING ON THE BASIS OF RETURN:

HDFC RELIANCE FRANKLIN SBI DSPML

EQUITY VISION INDIA MAGNUM TOP 100

FUND PRIMA PLUS CONTRA

RETURNS
55.74 56.88 63.88 61.72 59.60
(Last 1 year)

RETURNS
53.24 53.04 50.48 67.56 50.77
(Last 3 yrs)

80
1 Year Returns
67.56
70 63.88 3 Year Returns
61.78 59.6
55.74 56.88
60 53.24 53.04
50.48 50.77
50
ALPHA

40
30
20

10
0
HDFC Equity Reliance Vision Franklin India SBI Magnum DSPML Top 100
Prima Plus Contra

FUNDS
ANALYSIS

ON THE BASIS OF 1 YEAR RETURNS:

# While comparing 1 year returns of the five equity schemes, it is found that

FRANKLIN INDIA PRIMA PLUS has the highest return of 63.88%. It means that in

short term, this fund is giving very good returns.

# It is closely followed by SBI MAGNUM CONTRA with a value of 61.78%.

# DSPML TOP 100 has a value of 59.60% and is again a good short term return

giving fund.

ON THE BASIS OF 3 YEAR RETURNS:

# While comparing 3 year returns, it is found that SBI MAGNUM CONTRA has the

highest return of 67.56%. It means that this fund is giving high returns in short term

as well as long term.

# FRANKLIN INDIA PRIMA PLUS which is having the highest returns in last one

year, is having the lowest 3 year returns among all the five funds. It means that the

fund is giving high returns in short term only.

# It is seen that both HDFC EQUITY FUND and RELIANCE VISION FUND are

having somewhat similar 1 year and 3 year returns. It means that both these funds

are giving stable returns in short term as well as long term and are thus providing

the benefit of stable returns to their investors.


FUND COMPARISON AT A GLANCE

RANKS STANDARD SHARPE BETA ALPHA RETURNS


DEVIATION RATIO (Last 3 yrs)

SBI MAGNUM
1 6.31 0.67 0.93 1.67 67.56
CONTRA

HDFC EQUITY
2 5.34 0.63 0.87 1.01 53.24
FUND

RELIANCE
3 5.80 0.60 0.90 1.00 53.04
VISION

FRANKLIN
INDIA PRIMA 4 5.58 0.57 0.89 0.77 50.48
PLUS

DSPML TOP
5 5.66 0.56 0.96 0.55 50.77
100
CHAPTER-5

CONCLUSION
CONCLUSION

It can be inferenced from the results above that SBI Magnum Contra has out

performed in all the five performance evaluation measures. Hence, it can be

concluded that it is the best performing fund during the period of study amongst the

five funds selected for study. Although the fund is having the highest standard

deviation, it is concluded that the fund falls in the category of high risk and high

returns.

Close to SBI Magnum Contra is HDFC Equity Fund. The overall performance of

this fund is favorable as the results of this fund are ranked second amongst the five

funds of the study in all the measures used in evaluation.

DSPML Top 100 is a highly volatile fund having the lowest alpha amongst all the

five funds while the beta of this fund is the maximum.

In all, it can be concluded from the study above that the top three performing funds

according to the study are SBI Magnum Contra, HDFC Equity Fund and Reliance

Vision.

Mutual funds are an uprising trend amongst investors as they ensure high returns.

A good mutual fund company is known by its AMC and its choicest stock selection

skills. In order to be accountable for the selection of funds, the performance

indicators discussed above reveal the overall performance of the schemes relative

to the risk associated with them.


The Mutual fund industry is growing at an impressive pace. A host of factors such

as increased competition, product innovation to drive growth have contributed to

tap the latent needs of investors, including retail investors, who have begun to look

at mutual funds as a suitable investment avenue. These factors have attributed

significantly to the growth of mutual fund industry in India, particularly in the recent

times. However, there still remains a huge scope of improvement to catch up with

the standard level of the developed economies.


CHAPTER-6

SUGGESTIONS
SUGGESTIONS AND RECOMMENDATIONS

♦ In India, less than 3% of household savings are put into mutual funds. There is

great potential for mutual funds in the Indian market. Therefore, more awareness

must be created among people about the good returns which the mutual funds

have generated in the past, which are very high in comparison to other

investment options.

♦ Entry load usually varies from 2 to 2.25%. Therefore, a few no load based funds

should be introduced. Thus, it would attract more and more customers for the

industry and lead to its expansion.

♦ Whatever fee is charged by a fund house, it should be linked to its performance.

So that the investor feels that it is a fair game and he is not being charged

heavily, when he is not getting anything in return.

♦ More and more Capital Guaranteed Funds should be introduced. This would

encourage more and more people and thus would lead to expansion of mutual

funds industry.

♦ There should be more advertisement so that people can be aware of different

schemes of mutual funds and policies.

♦ All the vital information should be disclosed properly to the investors while

investment so that they can fully understand the policies of mutual funds.
CHAPTER-7

BIBLIOGRAPHY
BIBLIOGRAPHY
www.mutualfundsindia.com

www.valueresearchonline.com

www.amfiindia.com

www.moneycontrol.com

www.myiris.com

www.hdfc.com

www.easyMF.com

www.reliancemutual.com

www.sbimf.com

www.templetonindia.com

Monthly Factsheets issued by the companies.

Sankaran Sundar, Indian Mutual Funds – Handbook, Vision Books, 2007

AMFI Mutual Fund Testing Programme – Workbook, Third Edition, May 2006

Gupta Shashi K, Financial Services, 2007

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