My Bhavik Winter M. F Compare

Comparison of Five Mutual fund Companies in Equity & Debt Funds Schemes
Sr. No 1
1.1) 1.2) 1.3) 1.4) 1.5) 1.6) 1.7) 1.8) 1.9)
Profile of industry
History of Mutual fund industry Concept of Mutual fund Advantages of Mutual fund Limitation of Mutual fund Structure of Mutual fund in India Types of Mutual fund Other types of Mutual fund Broad types of Mutual fund Risks associated with Mutual fund
Navnirman Institute of Management 1
1.1). History of 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 history of mutual funds in India can be broadly divided into four distinct phases.
First Phase 1964-87:Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of assets under management. Second Phase 1987-1993 (Entry of Public Sector Funds):-
1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). 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. At the end of 1993, the mutual fund industry had assets under management of Rs.47, 000 cores
Third Phase1993-2003(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. As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805 crores. The Unit Trust of India with Rs.44,541 crores of assets under management was way ahead of other mutual funds.
Fourth Phase since February 2003:In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs.29,835 crores as at the end of January 2003, representing broadly, the assets of US 64 scheme, assured return and certain other schemes. The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000 cores of assets under management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking place among different private sector funds, the mutual fund industry has entered its current phase of consolidation and growth. As at the end of September, 2004, there were 29 funds, which manage assets of Rs.153108 corers under 421 schemes. Navnirman Institute of Management 3
Evolution of Industry
The graph indicates the growth of assets over the years. Growth in Assets under Management
How a mutual fund set up

A mutual fund is set up in the form of a trust, which has sponsor, trustees, asset Management Company (AMC) and custodian. The trust is established by a sponsor or more than one sponsor who is like promoter of a company. The trustees of the mutual fund hold its property for the benefit of the unit holders. Asset Management Company (AMC) approved by SEBI manages the funds by making investments in various types of securities. Custodian, who is registered with SEBI, holds the securities of various schemes of the fund in its custody. The trustees are vested with the general power of superintendence and direction over AMC. They monitor the performance and compliance of SEBI Regulations by the mutual fund. SEBI Regulations require that at least two thirds of the directors of trustee company or board of trustees must be independent i.e. they should not be associated with the sponsors. Also, 50% of the directors of AMC must be independent. All mutual funds are required to be registered with SEBI before they launch any scheme. However, Unit Trust of India (UTI) is not registered with SEBI (as on January 15, 2002).
1.2). Concept of Mutual Fund:What is Mutual Fund?
INVESTOR
Invest / Pool Their money
Profit/Loss from Portfolio Of investments
Mutual Fund Co. (Pool of money)
Investing a Number of Stocks/Bonds
Profit/Loss from individual Of investments
Market (Fluctuates)
A Mutual Fund is a common pool of money in to which investors with common investment objective place their contributions that are to be invested in accordance with the stated investment objective of the scheme. The investment manager would invest the money collected from the investor in to assets that are defined/ permitted by the stated objective of the scheme. For example, an equity fund would invest equity and equity related instruments and a debt fund would invest in bonds, debentures, gilts etc.
Working of Mutual Fund

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. Thus a mutual fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. The Flow Chart below describes broadly the working of a MUTUAL FUND:
1.3). Advantages of Mutual Fund:S. No.
Advantage
Particulars Mutual Funds invest in a well-diversified portfolio of securities which enables investor to hold a diversified investment portfolio (whether the amount of investment is big or small). Fund manager undergoes through various research works and has better investment management skills which ensure higher returns to the investor than what he can manage on his own. Investors acquire a diversified portfolio of securities even with
1.
Portfolio Diversification
2.
Professional Management
3.
Less Risk
a small investment in a Mutual Fund. The risk in a diversified portfolio is lesser than investing in merely 2 or 3 securities.
Low 4. Transaction Costs
Due to the economies of scale (benefits of larger volumes), mutual funds pay lesser transaction costs. These benefits are passed on to the investors. An investor may not be able to sell some of the shares held by
5.
Liquidity
him very easily and quickly, whereas units of a mutual fund are far more liquid. >Mutual funds provide investors with various schemes with
6.
Choice of Schemes
different investment objectives. Investors have the option of investing in a scheme having a correlation between its investment objectives and their own financial goals. These schemes further have different plans/options Funds provide investors with updated information pertaining to
7.
Transparency the markets and the schemes. All material facts are disclosed to investors as required by the regulator.
1.4). Disadvantages of Mutual fund:S. No.
Disadvantage
Particulars
Costs Control Investor has to pay investment management fees and fund 1. Not in the Hands of an Investor distribution costs as a percentage of the value of his investments (as long as he holds the units), irrespective of the performance of the fund. The portfolio of securities in which a fund invests is a decision No Customized Portfolios taken by the fund manager. Investors have no right to interfere in the decision making process of a fund manager, which some investors find as a constraint in achieving their financial objectives. Difficulty in 3. Selecting a Many investors find it difficult to select one option from the plethora of funds/schemes/plans available. For this, they may
2.
Suitable Fund have to take advice from financial planners in order to invest in Scheme the right fund to achieve their objectives.
1.5). Structure of Mutual Fund in India:Mutual Funds in India follow a 3-tier structure.
1) Sponsor:There is a Sponsor who thinks of starting a mutual fund. The Sponsor approaches the Securities & Exchange Board of India (SEBI), which is the market regulator and also the regulator for mutual funds.
2) Trustees:Once SEBI is convinced, the sponsor creates a Public Trust as per the Indian Trusts Act, 1882. Trusts have no legal identity in India and cannot enter into contracts, hence the Trustees are the people authorized to act on behalf of the Trust. Contracts are entered into in the name of the Trustees. Once the Trust is created, it is registered with SEBI after which this trust is known as the mutual fund
3) Asset management company:This is the role of the Asset Management Company Trustees appoint the Asset Management Company (AMC), to manage investors money. The AMC in return charges a fee for the services provided and this fee is borne by the investors as it is deducted from the money collected from them. The AMCs Board of Directors must have at least 50% of Directors who are independent directors. The AMC has to be approved by SEBI. The AMC functions under the supervision of its Board of Directors, and also under the direction of the Trustees and SEBI. It is the AMC, which in the name of the Trust, floats new schemes and manage these schemes by buying and selling securities. In order to do this the AMC needs to follow all rules and regulations prescribed by SEBI and as per the Investment Management Agreement it signs with the Trustees.
Fund structure
AMC Trust
Sponsor
1.6). Types of Mutual funds:There are mainly two type of mutual fund.
1).Open-ended Fund:An open-ended Mutual fund is one that is available for subscription and repurchase on a continuous basis. These Funds do not have a fixed maturity period. Investors can conveniently buy and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis. The key feature of open-end schemes is liquidity.
2).Close-ended Fund:A close-ended Mutual fund has a stipulated maturity period e.g. 5-7 years. The fund is open for subscription only during a specified period at the time of launch of the scheme. 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 the units 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 i.e. either repurchase facility or through listing on stock exchanges. These mutual funds schemes disclose NAV generally on weekly basis.
1.7). Other types of Mutual fund:1.) Load fund & No Load fund:-
A)Loadfund:Mutual Funds incur various expenses on marketing, distribution, advertising, portfolio churning, fund manager's salary etc. Many funds recover these expenses from the investors in the form of load. These funds are known as Load Funds. A load fund may impose following types of loads on the investors: 1. Entry Load - Also known as Front-end load, it refers to the load charged to an investor at the time of his entry into a scheme. Entry load is deducted from the investor's contribution amount to the fund. 2. Exit Load - Also known as Back-end load, these charges are imposed on an investor when he redeems his units (exits from the scheme). Exit load is deducted from the redemption proceeds to an outgoing investor. 3. Deferred Load - Deferred load is charged to the scheme over a period of time. 4. Contingent Deferred Sales Charge (CDSC) - In some schemes, the percentage of exit load reduces as the investor stays longer with the fund. This type of load is known as Contingent Deferred Sales Charge.
B)No-loadfund:known as No-load Funds
All those funds that do not charge any of the above mentioned loads are
2) Tax-exempt Fund | Non-Tax-exempt Fund:-
A) Tax-exempt Fund:Funds that invest in securities free from tax are known as Tax-exempt Funds. All open-end equity oriented funds are exempt from distribution tax (tax for distributing income to investors). Long term capital gains and dividend income in the hands of investors are tax-free.
B) Non-Tax-exempt Fund:Funds that invest in taxable securities are known as Non-Tax-exempt Funds. In India, all funds, except open-end equity oriented funds are liable to pay tax on distribution income. Profits arising out of sale of units by an investor within 12 months of purchase are categorized as short-term capital gains, which are taxable. Sale of units of an equity oriented fund is subject to Securities Transaction Tax (STT). STT is deducted from the redemption proceeds to an investor.
1.8). Broad types of Mutual fund:-
Explain above type in brief:-
1) Equity fund:Equity funds are considered to be the more risky funds as compared to other fund types, but they also provide higher returns than other funds. It is advisable that an investor looking to invest in an equity fund should invest for long term i.e. for 3 years or more. There are different types of equity funds each falling into different risk bracket. In the order of decreasing risk level, there are following types of equity funds:
Comparison of Five Mutual fund Companies in Equity & Debt Funds Schemes a. Aggressive Growth Funds - In Aggressive Growth Funds, fund managers aspire for maximum capital appreciation and invest in less researched shares of speculative nature. Because of these speculative investments Aggressive Growth Funds become more volatile and thus, are prone to higher risk than other equity funds. b. Growth Funds - Growth Funds also invest for capital appreciation (with time horizon of 3 to 5 years) but they are different from Aggressive Growth Funds in the sense that they invest in companies that are expected to outperform the market in the future. Without entirely adopting speculative strategies, Growth Funds invest in those companies that are expected to post above average earnings in the future. c. Speciality Funds - Speciality Funds have stated criteria for investments and their portfolio comprises of only those companies that meet their criteria. Criteria for some speciality funds could be to invest/not to invest in particular regions/companies. Speciality funds are concentrated and thus, are comparatively riskier than diversified funds.. There are following types of speciality funds: i. Sector Funds: Speciality Funds have stated criteria for investments and their portfolio comprises of only those companies that meet their criteria. Criteria for some speciality funds could be to invest/not to invest in particular regions/companies. Speciality funds are
concentrated and thus, are comparatively riskier than diversified funds.. There are following types of speciality funds: ii. Foreign Securities Funds: Foreign Securities Equity Funds have the option to invest in one or more foreign companies. Foreign securities funds achieve international diversification and hence they are less risky than sector funds. However, foreign securities funds are exposed to foreign exchange rate risk and country risk.
Comparison of Five Mutual fund Companies in Equity & Debt Funds Schemes iii. Mid-Cap or Small-Cap Funds: Funds that invest in companies having lower market capitalization than large capitalization companies are called Mid-Cap or Small-Cap Funds. Market capitalization of MidCap companies is less than that of big, blue chip companies (less than Rs. 2500 crores but more than Rs. 500 crores) and Small-Cap companies have market capitalization of less than Rs. 500 crores. Market Capitalization of a company can be calculated by multiplying the market price of the company's share by the total number of its outstanding shares in the market. The shares of Mid-Cap or Small-Cap Companies are not as liquid as of Large-Cap Companies which gives rise to volatility in share prices of these companies and consequently, investment gets risky. iv. Option Income Funds*: While not yet available in India, Option Income Funds write options on a large fraction of their portfolio. Proper use of options can help to reduce volatility, which is otherwise considered as a risky instrument. These funds invest in big, high dividend yielding companies, and then sell options against their stock positions, which generate stable income for investors. d. Diversified Equity Funds - Except for a small portion of investment in liquid money market, diversified equity funds invest mainly in equities without any concentration on a particular sector(s). These funds are well diversified and reduce sector-specific or company-specific risk. However, like all other funds diversified equity funds too are exposed to equity market risk. One prominent type of diversified equity fund in India is Equity Linked Savings Schemes (ELSS). As per the mandate, a minimum of 90% of investments by ELSS should be in equities at all times. ELSS investors are eligible to claim deduction from taxable income (up to Rs 1 lakh) at the time of filing the income tax return. ELSS usually has a lock-in period and in case of any redemption by the investor before the expiry of the lock-in period makes him liable to pay income tax on such income(s) for which he may have received any tax exemption(s) in the past.
Comparison of Five Mutual fund Companies in Equity & Debt Funds Schemes e. Equity Index Funds - Equity Index Funds have the objective to match the performance of a specific stock market index. The portfolio of these funds comprises of the same companies that form the index and is constituted in the same proportion as the index. Equity index funds that follow broad indices (like S&P CNX Nifty, Sensex) are less risky than equity index funds that follow narrow sectoral indices (like BSEBANKEX or CNX Bank Index etc). Narrow indices are less diversified and therefore, are more risky. f. Value Funds - Value Funds invest in those companies that have sound fundamentals and whose share prices are currently under-valued. The portfolio of these funds comprises of shares that are trading at a low Price to Earning Ratio (Market Price per Share / Earning per Share) and a low Market to Book Value (Fundamental Value) Ratio. Value Funds may select companies from diversified sectors and are exposed to lower risk level as compared to growth funds or speciality funds. Value stocks are generally from cyclical industries (such as cement, steel, sugar etc.) which make them volatile in the short-term. Therefore, it is advisable to invest in Value funds with a long-term time horizon as risk in the long term, to a large extent, is reduced. g. Equity Income or Dividend Yield Funds - The objective of Equity Income or Dividend Yield Equity Funds is to generate high recurring income and steady capital appreciation for investors by investing in those companies which issue high dividends (such as Power or Utility companies whose share prices fluctuate comparatively lesser than other companies' share prices). Equity Income or Dividend Yield Equity Funds are generally exposed to the lowest risk level as compared to other equity funds.
2) Debt / Income fund:Funds that invest in medium to long-term debt instruments issued by private companies, banks, financial institutions, governments and other entities belonging to various sectors (like infrastructure companies etc.) are known as Debt / Income Funds. Debt funds are low risk profile funds that seek to generate fixed current income (and not capital appreciation) to investors. In order to ensure regular income to investors, debt (or income) funds distribute large fraction of their surplus to investors. Although debt securities are generally less risky than equities, they are subject to credit risk (risk of default) by the issuer at the time of interest or principal payment. To minimize the risk of default, debt funds usually invest in securities from issuers who are rated by credit rating agencies and are considered to be of "Investment Grade". Debt funds that target high returns are more risky. Based on different investment objectives, there can be following types of debt funds: a. Diversified Debt Funds - Debt funds that invest in all securities issued by entities belonging to all sectors of the market are known as diversified debt funds. The best feature of diversified debt funds is that investments are properly diversified into all sectors which results in risk reduction. Any loss incurred, on account of default by a debt issuer, is shared by all investors which further reduces risk for an individual investor. b. Focused Debt Funds* - Debt funds that invest in all securities issued by entities belonging to all sectors of the market are known as diversified debt funds. The best feature of diversified debt funds is that investments are properly diversified into all sectors which results in risk reduction. Any loss incurred, on account of default by a debt issuer, is shared by all investors which further reduces risk for an individual investor.
Comparison of Five Mutual fund Companies in Equity & Debt Funds Schemes c. High Yield Debt funds - As we now understand that risk of default is present in all debt funds, and therefore, debt funds generally try to minimize the risk of default by investing in securities issued by only those borrowers who are considered to be of "investment grade". But, High Yield Debt Funds adopt a different strategy and prefer securities issued by those issuers who are considered to be of "below investment grade". The motive behind adopting this sort of risky strategy is to earn higher interest returns from these issuers. d. Assured Return Funds - Although it is not necessary that a fund will meet its objectives or provide assured returns to investors, but there can be funds that come with a lock-in period and offer assurance of annual returns to investors during the lock-in period. Any shortfall in returns is suffered by the sponsors or the Asset Management Companies (AMCs). These funds are generally debt funds and provide investors with a low-risk investment opportunity. However, the security of investments depends upon the net worth of the guarantor (whose name is specified in advance on the offer document). To safeguard the interests of investors, SEBI permits only those funds to offer assured return schemes whose sponsors have adequate net-worth to guarantee returns in the future. In the past, UTI had offered assured return schemes (i.e. Monthly Income Plans of UTI) that assured specified returns to investors in the future. UTI was not able to fulfill its promises and faced large shortfalls in returns. Eventually, government had to intervene and took over UTI's payment obligations on itself. Currently, no AMC in India offers assured return schemes to investors, though possible. e. Fixed Term Plan Series - Fixed Term Plan Series usually are closed-end schemes having short term maturity period (of less than one year) that offer a series of plans and issue units to investors at regular intervals. Unlike closedend funds, fixed term plans are not listed on the exchanges. Fixed term plan series usually invest in debt / income schemes and target short-term investors. The objective of fixed term plan schemes is to gratify investors by generating some expected returns in a short period.
3) Gilt fund:Also known as Government Securities in India, Gilt Funds invest in government papers (named dated securities) having medium to long term maturity period. Issued by the Government of India, these investments have little credit risk (risk of default) and provide safety of principal to the investors. However, like all debt funds, gilt funds too are exposed to interest rate risk.
4) Money market / liquid market:Money market / liquid funds invest in short-term (maturing within one year) interest bearing debt instruments. These securities are highly liquid and provide safety of investment, thus making money market / liquid funds the safest investment option when compared with other mutual fund types. However, even money market / liquid funds are exposed to the interest rate risk. The typical investment options for liquid funds include Treasury Bills (issued by governments), Commercial papers (issued by companies) and Certificates of Deposit (issued by banks).
5) Hybrid fund:As the name suggests, hybrid funds are those funds whose portfolio includes a blend of equities, debts and money market securities. Hybrid funds have an equal proportion of debt and equity in their portfolio. There are following types of hybrid funds in India: a. Balanced Funds - The portfolio of balanced funds include assets like debt securities, convertible securities, and equity and preference shares held in a relatively equal proportion. The objectives of balanced funds are to reward investors with a regular income, moderate capital appreciation and at the same time minimizing the risk of capital erosion. Balanced funds are appropriate for conservative investors having a long term investment horizon. b. Growth-and-Income Funds - Funds that combine features of growth funds and income funds are known as Growth-and-Income Funds. These funds invest in companies having potential for capital appreciation and those known for issuing high dividends. The level of risks involved in these funds is lower than growth funds and higher than income funds. Navnirman Institute of Management 21
Comparison of Five Mutual fund Companies in Equity & Debt Funds Schemes c. Asset Allocation Funds - Mutual funds may invest in financial assets like equity, debt, money market or non-financial (physical) assets like real estate, commodities etc.. Asset allocation funds adopt a variable asset allocation strategy that allows fund managers to switch over from one asset class to another at any time depending upon their outlook for specific markets. In other words, fund managers may switch over to equity if they expect equity market to provide good returns and switch over to debt if they expect debt market to provide better returns. It should be noted that switching over from one asset class to another is a decision taken by the fund manager on the basis of his own judgment and understanding of specific markets, and therefore, the success of these funds depends upon the skill of a fund manager in anticipating market trends.
6) Commodity fund:Those funds that focus on investing in different commodities (like metals, food grains, crude oil etc.) or commodity companies or commodity futures contracts are termed as Commodity Funds. A commodity fund that invests in a single commodity or a group of commodities is a specialized commodity fund and a commodity fund that invests in all available commodities is a diversified commodity fund and bears less risk than a specialized commodity fund. "Precious Metals Fund" and Gold Funds (that invest in gold, gold futures or shares of gold mines) are common examples of commodity funds.
7) Real estate fund:Funds that invest directly in real estate or lend to real estate developers or invest in shares/securitized assets of housing finance companies, are known as Specialized Real Estate Funds. The objective of these funds may be to generate regular income for investors or capital appreciation.
8) Exchange traded fund:Exchange Traded Funds provide investors with combined benefits of a closedend and an open-end mutual fund. Exchange Traded Funds follow stock market indices and are traded on stock exchanges like a single stock at index linked prices. The biggest advantage offered by these funds is that they offer diversification, flexibility of holding a single share (tradable at index linked prices) at the same time. Recently introduced in India, these funds are quite popular abroad.
9) Fund of fund:Mutual funds that do not invest in financial or physical assets, but do invest in other mutual fund schemes offered by different AMCs, are known as Fund of Funds. Fund of Funds maintain a portfolio comprising of units of other mutual fund schemes, just like conventional mutual funds maintain a portfolio comprising of equity/debt/money market instruments or non financial assets. Fund of Funds provide investors with an added advantage of diversifying into different mutual fund schemes with even a small amount of investment, which further helps in diversification of risks. However, the expenses of Fund of Funds are quite high on account of compounding expenses of investments into different mutual fund schemes.
1.9). Risks Associated With Mutual Funds:-
The price of a security may be affected because of the overall sentiment in the market. Sentiment means how most people in the market fell.
1. Economic Risk:The price of securities may fluctuate because the expectation about the national economy whether the economy as a whole is slowing to other competing economies.
2. Interest Rate Risk:Changes in interest rate (which occur due to changes in supply and demand for money) influences securities process. In case of fixed income securities, the impact is direct. If interest rate rises, price falls and vice versa. Fall in interest rate may benefit share prices because cost of funds to companies may move down, hence their profit may go up.
3. Credit Risk:The risk of failure on part of a borrower to meet interest and principal amount obligations.
4. Regulatory Risk:Price of securities may be affected due to changes in law, procedures, import export policy etc.
5. Industry Risk
A particular security may be affected due to certain developments peculiar to that industry.
6. Technology Risk:Discovery of new processes or radical changes in technology used by certain companies may affect prices of shares of that company. This is also known as risk of obsolescence.
7. Environment Risk:Certain companies may be adversely affected because of certain restriction imposed on them by the authorities for protection of the environment.
8. Event Risk:Sometimes an event such as an accident or an earthquake may influences prices of securities because the event may cripple the operations of a company temporarily or permanently.
9. Country Risk:A country in financial difficulty may impose restriction on trade and capital flows affecting investments made in that country.
CH-2
2.1) 2.2) 2.3) 2.4) 2.5)
Profile of Company
Detail of Birla sun life mutual fund Detail of HDFC mutual fund Detail of Reliance mutual fund Detail of LIC mutual fund Detail of Principal mutual fund
2.1) Birla Sun life Mutual Fund:Since its inception in 1994, BIRLA SUN LIFE Mutual Fund has emerged as one of Indias largest Mutual Fund managing assets of a large investors base. The fund offers a range of investment options, which include diversified and sector specific equity schemes, fund of fund schemes, hybrid and monthly income funds, a wide range of debt and treasury products and offshore funds. BIRLA SUN LIFE Mutual Fund was set up in the year 1994. It provides a range of investment products on equity and fixed income asset classes. It is one of the leading Mutual Funds in India and has been recipient of various awards for its investment performance.
Vision:To be the most trusted name in investment and wealth management, to be the preferred employer in the industry and to be a catalyst for growth and excellence of the asset management business in India.
Mission:To consistently purse investors wealth optimization by: Achieving superior and consistent investment results. Creating a conductive environment to hove and retains talent. Providing customer delight. Institutionalizing system-approach in all aspects of functioning. Upholding highest standards of ethical values at all times.
AMC of Birla Sun Life Mutual Fund:BIRLA SUN LIFE AMC LTD; the investment managers of BIRLA SUN LIFE Mutual Fund, is a joint venture between the Aditya Birla Group and The Sun Life Financial Services Inc. of Canada. The joint venture brings together the Aditya Birla Groups experience in the Indian market and Sun lifes global experience. BIRLA SUN LIFE AMC follows a long-term, fundamental research based approach to investment. The approach is to identify companies, which have excellent growth prospects and strong fundamentals. The fundamentals include the quality of the companys management, sustainability of its business model and its competitive position, amongst other factors.
2.2) HDFC Mutual Fund:HDFC Mutual Fund is one of the largest mutual fund and well established fund house in the country with consistent and above average fund performance across categories since its incorporation on December 10, 1999. While our past experience does make us a veteran but when it comes to investments, we have never believed that experience is enough. 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 2 years in succession. Over the past, we have won a number of awards and accolades for our performance. HDFC trustee Company Ltd, a company incorporated under the Companies Act, 1956 is the trustee to HDFC Mutual Fund vides the Trust deed dated June 8, 2000 as amended from time-to-time. HDFC trustee Company Ltd, is wholly owned subsidiary of HDFC. As On 31st January, Number of Investors: 3,150,172
2010Average Asset Under Management: 51,420.713 cores
Vision:To be a dominant player in Indian Mutual Fund space, recognized for its high level of ethical and professional conduct and commitment towards enhancing investors interest.
AMC of HDFC Mutual Fund:HDFC Asset Management Company Ltd was incorporate under the Companies Act, 1956 on December 10, 1999 and was approved to act as an Asset Management Company for HDFC Mutual Fund by SEBI vide its letter dated July 3, 2000. In terms of the investment management agreement, trustee has appointed the HDFC Asset Management Co. Ltd to mange the mutual fund. The paid up capital of AMC is 251.161 cores.
2.3) Reliance Mutual Fund:RELIANCE Mutual Fund is one of Indias leading Mutual Fund, with average Asset Under Management of Rs. 76,168 crores ( AAUM for 31st Jan, 2009) and an investor base of over 71.38 Lacs* (* There may be a minor change in the investor count). Reliance Mutual Fund, a part of the Reliance- Anil Dhirubhai Ambani Group, is one of the fastest growing Mutual Funds in the country. Reliance Mutual Fund offers investors a well-rounded portfolio of products to meet varying investors requirements and has presence in 118 cities across the country. Reliance Mutual Fund constantly endeavors to launch innovative products and customer services initiatives to increase value to investors. Reliance Capital Ltd. is one of Indias leading and fastest growing private sector financial services companies and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital Ltd, has interest in asset management, life and general insurance, private equity and proprietary investment, stock broking and other financial services.
Vision:
To be globally respected wealth creator with an emphasis on customer care and a culture of good corporate governance.
Mission:
To create and nurture a world-class, high performance environment aims at delighting our customers.
AMC of Reliance Mutual Fund:Reliance Capital Asset Management ltd, a company registered under the companies act, 1956 was appointed to act as the investment manager of Reliance Mutual Fund. Reliance Capital Asset Management ltd was approved as the AMC for the mutual fund by SEBI vide their letter no IIMARP/1264/95 dated June 30, 1995. The mutual fund has entered into an investment management. Agreement (IMA) with Reliance Capital Asset Management ltd dated May 12, 1995 and was amended on Aug 12, 1997 in line with SEBI (Mutual Fund) Regulations, 1996. Pursuant to this IMA, Reliance Capital Asset Management ltd is authorized to act as investment manager of Reliance Mutual Fund. The net worth of the AMC including preference shares as on Sep 30, 2007 is Rs. 152.02 crores. Reliance Mutual Fund has launched 35 schemes till date. Reliance Mutual Fund schemes are managed by Reliance Capital Asset Management ltd; a subsidiary of Reliance Capital Ltd, which holds 93.37% of the paid-up capital of Reliance Capital Asset Management ltd, the balance paid up capital being held by minority shareholders.
2.4) LIC Mutual Fund:Set up of the fund Life Insurance Corporation of India set up LIC Mutual Fund on 19th June 1989 and contributed Rs. 2 Crores towards the corpus of the Fund. LIC Mutual Fund was constituted as a Trust in accordance with the provisions of the Indian Trust Act, 1882. The settlor is not responsible for the management of the Trust. The settlor is also not responsible or liable for any loss or shortfall resulting in any of the schemes of LIC Mutual Fund. The Trustees of the LIC Mutual Fund have exclusive ownership of Trust Fund and are vested with general power of superintendence, discretion and management of the affairs of the Trust. LIC Mutal Fund Asset Management Company Ltd. was formed on 20th April 1994 in compliance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1993.
AMC of HDFC Mutual Fund:The Company commenced business on 29th April 1994. The Trustees of LIC Mutual Fund have appointed LIC Mutual Fund Asset Management Company Ltd. as the Investment Managers for LIC Mutual Fund. The Trustees are responsible for appointing a Custodian. The Trustees should also ensure that the activities of the Trust and the Asset Management Company are in accordance with the Trust Deed and the SEBI Mutual Fund Regulations as amended from time to time. The Trustees have also to report periodically to SEBI on the functioning of the Fund. The investors under the schemes can obtain a copy of the Trust Deed, the text of the concerned Scheme as also a copy of the Annual Report, on a written request made to the LIC Mutual Fund Asset Management Company Ltd. at a nominal price of Rs. 10/-.
2.5). Principal Mutual Fund:Principal Mutual Fund (formerly known as IDBI-PRINCIPAL Mutual Fund) has been constituted as a Trust in accordance with the provisions of the Indian Trusts Act, 1882 (2 of 1882). The Mutual Fund is registered with SEBI under Registration No. MF/019/94/0, dated December 13, 1994. The Fund was initially set up by Industrial Development Bank of India (IDBI) in 1994 by execution of a Trust Deed dated November 25, 1994, under which IDBI was the sole Settlor, Subsequently, on March 31, 2000, Principal Financial Services Inc. USA became the deemed sponsor (along with the IDBI) by acquiring 50% stake in IDBI-PRINCIPAL Asset Management Company Limited. In June 2003, Principal Financial Services Inc. USA became the sole sponsor by acquiring 100% stake in IDBI-PRINCIPAL Asset Management Company Limited, through its wholly owned subsidiary Principal Financial Group (Mauritius) Limited (Principal Mauritius). Accordingly, Principal Mauritius, Punjab National Bank and Vijaya Bank have 65%, 30% and 5% respectively of all the rights, title, interest and obligations as co-settlors to Principal Mutual Fund.
Mission:
Our mission is to generate consistent and sustainable returns for our investors. To achieve this objective, we continue to practice the values that stand at the core of our professional philosophy. Excellence in investment techniques along with the best of personnel in the industry allows us to achieve consistent top quality in all our endeavors.
AMC of Principal Mutual Fund:Principal PNB Asset Management Company Private Limited (in association with Vijaya Bank) is a joint venture between Principal Financial Group (Mauritius) Limited, subsidiary of Principal Financial Services Inc., USA (member of Principal Financial Group) and two of the largest banks in India: Punjab National Bank (PNB) and Vijaya Bank. Since beginning operations in India, Principal has been positioned at the forefront of long-term investment solutions for both retail and institutional investors through its mutual fund plans. Its diverse investment options, coupled with value-added services, have positioned Principal as an innovator in the Indian Mutual Fund Industry. Today, around 9 lakh investors have entrusted us with managing their assets worth over` 5,764 crores (Average Assets Under Management as of December 31, 2010).
Sr. No 3
3.1) 3.2) 3.3) 3.4) 3.5) 3.6)
Theoretical Framework
Concept of NAV Concept of standard deviation Concept of return (Rx) Concept of custodian Role of AMC Role of registrars & transfer agents
3.1). Net Asset Value:The net asset value of the fund is the cumulative market value of the assets fund net of its liabilities. In other words, if the fund is dissolved or liquidated, by selling off all the assets in the fund, this is the amount that the shareholders would collectively own. This gives rise to the concept of net asset value per unit, which is the value, represented by the ownership of one unit in the fund. It is calculated simply by dividing the net asset value of the fund by the number of units. However, most people refer loosely to the NAV per unit as NAV, ignoring the "per unit".
The Following Formula Is Utilized For Calculating NAV Per Unit: NAV = Total Assets Total Liabilities Total no. Of outstanding shares For example, If the market value of securities of a mutual fund scheme is Rs 200 lakhs and the mutual fund has issued 10 lakhs units of Rs. 10 each to the investors, then the NAV per unit of the fund is Rs.20. NAV is required to be disclosed by the mutual funds on a regular basis - daily or weekly - depending on the type of scheme.
3.2). Standard Deviation:

Its a measure of the risk of individual securities or portfolios. It is a statistical measure of the volatility of rate of return; i.e, the degree to which returns vary around the average return. Its a measure of degree to which a funds return varies from its previous returns or from the average of all similar funds. The larger the standard deviation, the greater the likelihood that a securitys performance will fluctuate from the average return. Hence the lower it is the better the portfolio will be.
3.3). Return (Rx):

Return means income received on an investment plus any change in market price usually expressed as a present of the beginning market price of the investment. But from the investors point of view, the most important outcome from an investment is the rate of return. The return from an investment is the realizable cash flow earned by its owner during a given period of time. The Following Formula Is Utilized For Calculating Rate of Return Rate of return (%) = Closing NAV Opening NAV *100 Opening NAV
For Example, Following data indicate the 5 monthly NAVs of equity top 100 funds find out the Rate of Return of this particular scheme.
Months 01-Jan-08 01-Feb-08 01-Mar-08 01-Apr-08 01-May-08 NAV 75.65 67.81 61.88 63.97 64.31
Rate of return (%) =
67.81-75.65 *100 75.65
-10.36
3.4). Concept of Custodian:A custodians role is safe keeping of physical securities and also keeping a tab on the corporate actions like rights, bonus and dividends declared by the companies in which the fund has invested. The Custodian is appointed by the Board of Trustees. The custodian also participates in a clearing and settlement system through approved depository companies on behalf of mutual funds, in case of dematerialized securities. Navnirman Institute of Management 38
3.5). Role of AMC:The role of the AMC is to manage investors money on a day to day basis. Thus it is imperative that people with the highest integrity are involved with this activity. The AMC cannot deal with a single broker beyond a certain limit of transactions. The AMC cannot act as a Trustee for some other Mutual Fund. The responsibility of preparing the OD lies with the AMC. Appointments of intermediaries like independent financial advisors (IFAs), national and regional distributors, banks, etc. is also done by the AMC. Finally, it is the AMC which is responsible for the acts of its employees and service providers As can be seen, it is the AMC that does all the operations. All activities by the AMC are done under the name of the Trust, i.e. the mutual fund.
3.6). Role of Registration & Transfer:Registrars and Transfer Agents (RTAs) perform the important role of maintaining investor records. All the New Fund Offer (NFO) forms, redemption forms (i.e. when an investor wants to exit from a scheme, it requests for redemption) go to the RTAs office where the information is converted from physical to electronic form. How many units will the investor get, at what price, what is the applicable NAV, what is the entry load, how much money will he get in case of redemption, exit loads, folio number, etc. is all taken care of by the RTA
Sr. No 4
4.1) 4.2) 4.3) 4.4) 4.5) 4.6) 4.7)
Research Methodology
Objective of study Important of study Research Design (type) Collection type Analysis of data Limitation of study Scope of study
4.1). Objective of Study:Objective of study are as follow. Compare and analyze the data & schemes of different companies and to see which company is giving better return to the investors. To study different funds & schemes as a investor point of view of the companies. To get the knowledge of the mutual fund industry. To get practical exposure of the mutual fund.
4.2). Importance of the study: The company can know the data of other companies and compare with them. This study is important for who wants to invest in different mutual fund companys schemes and which companys schemes give more return to the investors.
4.3). Research Design (Type):A) Type of research design:This study is descriptive because, it available data. gives useful information from
B) Population: Various schemes of five mutual fund company and comparison with each other.
C) Sample Frame: List of schemes of mutual fund.
D) Scaling technique:Scaling is a process creating a continuum on which measured objects are located. For this project following scaling technique is used.
a) Ordinal scale:A ranking scale in which numbers are assigned to the objects to indicate the relative extent to which some characteristics is possessed. Thus it is possible to know whether an object has more of a characteristics than some other object e.g. Quality ranking
4.4). Collection Type:

A) Types of data:No primary data or analytical tools are included in this study. The entire used in the project are secondary data.
4.5). Analysis:A) Data analysis:The data analysis is done on the basis of following mention performance measure of factor: (1) Standard deviation (2) Rate of return
4.6). Limitation of Study:The limitations of the project are as follow. As the data are collected through secondary source (like internet and fact
sheet of various mutual fund companies) it is not sure that data are accurate and complete. Hence more dependence on secondary data may affect the quality of the project. Due to time constraints comparisons has been done only between 5 mutual fund companies. Hence the findings and the conclusion drawn may not fully represent the entire mutual fund industry. The scope of mutual fund industry is very wide so as to analyze each and every facet of it. If there is any error in data, all through they collected from official websites may influence the result & finding
4.7). Scope of Study:It is very helpful for those who want to invest in mutual funds and its also helpful to identify or study of other mutual fund schemes and funds. One can go for further study on the basis of this research.
The below table is showing the Comparison of 5 mutual fund companies in Equity fund & Debt fund schemes.
Company Name (5.1) EQUITY FUND
HDFC
BIRLA SUN LIFE
RELIANCE
LIC
PRINCIPAL
Growth fund scheme Tax-sever(ELSS) scheme Index fund scheme Top 100 fund scheme Opportunities scheme
(5.2) DEBT FUND
Income fund Floating long term fund Gilt long term fund Saving fund
(5.3)
Finding Navnirman Institute of Management 44
5.1) Equity Fund:Company Name HDFC BIRLA SUN LIFE RELIANCE LIC PRINCIPAL
Growth fund scheme Tax-sever(ELSS) scheme

EQUITY FUND
Index fund scheme TOP-100 scheme Opportunities fund scheme
5.1.1). Equity Growth Fund Scheme:The below table is showing monthly average NAV of five Mutual fund Companies in Equity growth fund scheme for 3 years from Jan-2008 to Dec-2010. NAV of Equity Growth Fund Scheme
Months 01-Jan-08 01-Feb-08 01-Mar-08 01-Apr-08 01-May-08 01-Jun-08 01-Jul-08 01-Aug-08 01-Sep-08 01-Oct-08 01-Nov-08 01-Dec-08 01-Jan-09 01-Feb-09 01-Mar-09 01-Apr-09 01-May-09 01-Jun-09 01-Jul-09 01-Aug-09 01-Sep-09 01-Oct-09 01-Nov-09 01-Dec-09 01-Jan-10 01-Feb-10 01-Mar-10 01-Apr-10 01-May-10 01-Jun-10 01-Jul-10 01-Aug-10 01-Sep-10 01-Oct-10 01-Nov-10 01-Dec-10 HDFC 75.65 67.81 61.88 63.97 64.31 58.29 54.43 59.04 57.21 45.99 41.35 41.45 39.32 37.32 36.71 43.48 51.48 57.58 58.27 61.43 65.73 68.53 70.37 72.27 73.00 70.81 73.67 76.04 75.27 78.67 82.17 85.35 91.57 93.80 93.52 89.94 BIRLA SUN LIFE 285.92 247.95 214.76 219.17 224.96 198.86 178.81 190.90 179.82 141.72 127.32 130.12 126.14 119.88 120.06 142.95 173.51 197.20 196.94 209.08 222.71 229.75 236.63 246.53 251.86 239.06 249.49 257.90 246.34 251.68 262.83 272.43 288.88 296.15 293.06 282.75 RELIANCE 383.26 369.64 335.47 347.96 347.33 334.84 319.23 330.34 324.24 257.60 271.84 249.54 241.23 240.65 243.18 262.45 288.69 301.69 333.47 333.43 340.83 358.81 352.71 371.51 445.16 437.79 447.00 456.36 442.77 462.36 468.25 477.20 492.79 499.13 481.62 480.98 LIC 32.27 27.58 22.55 23.95 24.42 21.46 20.18 21.75 20.74 15.82 13.88 14.33 14.4 13.79 13.77 16.31 19.52 21.95 21.6 22.63 23.93 24.2 24 24.67 24.92 23.57 24.68 25.17 24.3 24.83 25.85 26.37 28.05 29.37 28.91 28.4 PRINCIPAL 49.47 44.96 40.17 40.09 40.24 37.03 33.84 34.69 33.38 27.58 24.88 24.7 24.91 24.67 24.23 26.61 28.35 30.12 29.53 30.95 30.84 30.64 30.47 31.27 31.71 30.41 32.27 35.08 35.51 35.82 37.11 39.36 40.71 41.4 43.42 44.59
Comparision of NAV of Equity Growth Fund Scheme

600.00 500.00
Monthly Avg. NAV
400.00
300.00
200.00
100.00
0.00
01/Jul/08
01/Jul/09
01/Feb/08
01/Sep/08
01/Feb/09
01/Sep/09
01/Feb/10
01/Jul/10
01/May/08
01/May/09
01/May/10
01/Dec/08
01/Dec/09
01/Sep/10
01/Aug/08
01/Aug/09
01/Mar/08
01/Mar/09
01/Mar/10
01/Aug/10
01/Nov/08
01/Nov/09
HDFC
BIRLA SUN LIFE
RELIENCE
LIC
PRINCIPAL
Interpretation: The above graph represents average monthly movement of NAV for chosen five Mutual fund Equity growth fund scheme. One can easily infer from the above graph that in spite of difference in NAV value of all Companies scheme the all move in more or less same direction with almost same magnitude. Navnirman Institute of Management 47
01/Nov/10
01/Dec/10
01/Apr/08
01/Apr/09
01/Apr/10
01/Jun/08
01/Jun/09
01/Oct/08
01/Oct/09
01/Jun/10
01/Jan/08
01/Jan/09
01/Jan/10
01/Oct/10
The below table is showing monthly average rate of return of five Mutual fund Companies in Equity growth fund scheme for 3 years from Jan-2008 to Dec-2010.
Rate of Return of Equity Growth Fund Scheme

Months 01-Jan-08 01-Feb-08 01-Mar-08 01-Apr-08 01-May-08 01-Jun-08 01-Jul-08 01-Aug-08 01-Sep-08 01-Oct-08 01-Nov-08 01-Dec-08 01-Jan-09 01-Feb-09 01-Mar-09 01-Apr-09 01-May-09 01-Jun-09 01-Jul-09 01-Aug-09 01-Sep-09 01-Oct-09 01-Nov-09 01-Dec-09 01-Jan-10 01-Feb-10 01-Mar-10 01-Apr-10 01-May-10 01-Jun-10 01-Jul-10 01-Aug-10 01-Sep-10 01-Oct-10 01-Nov-10 HDFC -10.37 -8.74 3.38 0.52 -9.35 -6.64 8.47 -3.10 -19.60 -10.10 0.25 -5.14 -5.09 -1.64 18.46 18.41 11.83 1.21 5.41 7.00 4.27 2.68 2.70 1.00 -2.99 4.04 3.21 -1.01 4.53 4.44 3.87 7.29 2.44 -0.30 -3.82 BIRLA SUN LIFE -13.28 -13.38 2.05 2.64 -11.60 -10.08 6.77 -5.80 -21.19 -10.16 2.20 -3.06 -4.96 0.15 19.06 21.38 13.65 -0.13 6.16 6.52 3.16 3.00 4.18 2.16 -5.08 4.36 3.37 -4.48 2.17 4.43 3.65 6.04 2.52 -1.04 -3.52 RELIANCE -3.55 -9.25 3.72 -0.18 -3.60 -4.66 3.48 -1.85 -20.55 5.53 -8.20 -3.33 -0.24 1.05 7.92 10.00 4.50 10.53 -0.01 2.22 5.28 -1.70 5.33 19.83 -1.65 2.10 2.09 -2.98 4.42 1.27 1.91 3.27 1.29 -3.51 -0.13 LIC -14.53 -18.24 6.21 1.96 -12.12 -5.96 7.78 -4.64 -23.72 -12.26 3.24 0.49 -4.24 -0.15 18.45 19.68 12.45 -1.59 4.77 5.74 1.13 -0.83 2.79 1.01 -5.42 4.71 1.99 -3.46 2.18 4.11 2.01 6.37 4.71 -1.57 -1.76 PRINCIPAL -9.12 -10.65 -0.20 0.37 -7.98 -8.61 2.51 -3.78 -17.38 -9.79 -0.72 0.85 -0.96 -1.78 9.82 6.54 6.24 -1.96 4.81 -0.36 -0.65 -0.55 2.63 1.41 -4.10 6.12 8.71 1.23 0.87 3.60 6.06 3.43 1.69 4.88 2.69
Analysis of Rate of Return of Equity Growth Fund Scheme

25.00 20.00 15.00 10.00 5.00 0.00 -5.00 -10.00 -15.00 -20.00 -25.00 -30.00 01/Jul/08 01/Jul/09 01/Feb/08 01/Sep/08 01/Feb/09 01/Sep/09 01/Feb/10 01/Jul/10 01/May/08 01/May/09 01/May/10 01/Dec/08 01/Dec/09 01/Sep/10 01/Aug/08 01/Aug/09 01/Aug/10 01/Mar/08 01/Mar/09 01/Mar/10 01/Nov/08 01/Nov/09 01/Nov/10 01/Dec/10 01/Apr/08 01/Apr/09 01/Apr/10 01/Jan/08 01/Jan/09 01/Oct/08 01/Oct/09 01/Jan/10 01/Oct/10 01/Jun/08 01/Jun/09 01/Jun/10
percentage return (%)
HDFC
BIRLA SUN LIFE
RELIENCE
LIC
PRINCIPAL
Interpretation: The above graph represents average monthly movement of return for chosen five Mutual fund Equity growth fund scheme. One can easily infer from the above graph that return series of all companies scheme. The all line move in more or less same direction with almost same magnitude. Navnirman Institute of Management 49
Average Return & Standard Deviation of Equity Growth Fund Scheme of Five Companies.
HDFC BIRLA SUN LIFE 0.79 0.34 7.72 8.69 RELIANCE 0.87 6.61 LIC 0.04 8.92 PRINCIPAL -0.12 5.94
Average return Std deviation
Interpretation: Above table shows the average return and standard deviation of Equity growth scheme of five Mutual fund Companies. It is shown in above table that average return of HDFC, Birla Sun Life, Reliance, LIC and Principal are 0.79, 0.34, 0.87, 0.04 and 0.12 respectively. Whereas standard deviation of HDFC, Birla Sun Life, Reliance, LIC and Principal are 7.72, 8.69, 6.61, 8.92 and 5.94 respectively. It is clear from the above table that Reliance yields highest return whereas is having minimum S.D as compared to other four Companies. So if one wants invest money in Equity growth scheme one should go with Reliance and if more than one then HDFC and Birla Sun life could rank second and third respectively.
5.1.2). Equity Tax Sever (ELSS) Scheme:The below table is showing monthly average NAV of five Mutual fund Companies in Equity tax sever (ELSS) scheme for 3 years from Jan-2008 to Dec2010. NAV of Equity Tax Sever Scheme
Months 01-Jan-08 01-Feb-08 01-Mar-08 01-Apr-08 01-May-08 01-Jun-08 01-Jul-08 01-Aug-08 01-Sep-08 01-Oct-08 01-Nov-08 01-Dec-08 01-Jan-09 01-Feb-09 01-Mar-09 01-Apr-09 01-May-09 01-Jun-09 01-Jul-09 01-Aug-09 01-Sep-09 01-Oct-09 01-Nov-09 01-Dec-09 01-Jan-10 01-Feb-10 01-Mar-10 01-Apr-10 01-May-10 01-Jun-10 01-Jul-10 01-Aug-10 01-Sep-10 01-Oct-10 01-Nov-10 01-Dec-10 HDFC 139.41 122.65 106.29 106.83 106.83 106.83 89.71 89.71 96.57 76.43 66.03 66.43 66.06 63.50 60.75 72.61 85.66 96.93 99.36 106.86 115.56 120.02 124.76 128.76 131.53 127.92 131.90 135.62 133.02 137.74 143.98 149.57 158.99 164.40 163.18 159.25 BIRLA SUN LIFE 15.80 13.63 12.10 12.28 12.49 11.13 10.16 10.83 10.10 7.99 7.10 7.13 7.07 6.89 6.84 8.14 9.54 10.65 10.35 11.08 11.70 11.86 12.02 12.50 12.77 12.09 12.65 13.07 12.37 12.60 13.08 13.54 14.40 14.53 14.49 14.42 RELIANCE 16.26 15.96 14.31 14.72 14.59 13.92 13.25 13.79 13.68 11.42 11.87 11.03 10.95 10.85 10.98 11.77 12.65 13.22 14.47 14.37 14.59 15.34 15.13 15.93 19.15 18.75 19.21 19.50 19.00 19.93 20.50 21.01 21.94 21.80 21.02 21.37 LIC 36.36 30.87 27.08 27.77 28.11 24.63 22.74 24.25 23.11 18.13 16.22 16.72 16.44 15.86 16.02 18.81 22.34 24.70 24.34 25.29 26.81 26.74 26.31 27.22 27.37 26.06 27.15 27.61 26.49 27.25 28.44 29.04 31.00 32.23 31.78 31.27 PRINCIPAL 124.47 105.94 89.25 84.94 85.32 75.54 66.77 70.65 66.28 49.04 42.37 42.64 41.78 39.44 38.98 45.77 52.75 58.07 58.62 62.32 66.38 68.29 69.61 71.40 71.97 69.68 72.68 74.06 71.51 73.14 75.70 77.64 81.56 84.31 83.91 81.92
Comparision of NAV of Equity Tax Sever Seheme

350.00
Monthly Avg. NAV
300.00 250.00 200.00 150.00 100.00 50.00 0.00 01/Jul/08 01/Jul/09 01/Feb/08 01/Sep/08 01/Feb/09 01/Sep/09 01/Feb/10 01/Jul/10 01/Dec/08 01/Dec/09 01/Sep/10 01/May/08 01/May/09 01/May/10 01/Aug/08 01/Aug/09 01/Aug/10 01/Mar/08 01/Mar/09 01/Mar/10 01/Nov/08 01/Nov/09 01/Nov/10 01/Dec/10 01/Apr/08 01/Apr/09 01/Apr/10 01/Jan/08 01/Jan/09 01/Oct/08 01/Oct/09 01/Jan/10 01/Oct/10 01/Jun/08 01/Jun/09 01/Jun/10
HDFC
BIRLA SUN LIFE
RELIENCE
LIC
PRINCIPAL
Interpretation: The above graph represents average monthly movement of NAV for chosen five Mutual fund Equity tax sever (ELSS) scheme. One can easily infer from the above graph that in spite of difference in NAV value of all Companies scheme. The all move in more or less same direction with almost same magnitude. Navnirman Institute of Management 52
The below table is showing monthly average rate of return of five Mutual fund Companies in Equity tax sever (ELSS) scheme for 3 years from Jan-2008 to Dec2010. Rate of Return of Equity Tax Sever (ELSS) Scheme
Months 01-Jan-08 01-Feb-08 01-Mar-08 01-Apr-08 01-May-08 01-Jun-08 01-Jul-08 01-Aug-08 01-Sep-08 01-Oct-08 01-Nov-08 01-Dec-08 01-Jan-09 01-Feb-09 01-Mar-09 01-Apr-09 01-May-09 01-Jun-09 01-Jul-09 01-Aug-09 01-Sep-09 01-Oct-09 01-Nov-09 01-Dec-09 01-Jan-10 01-Feb-10 01-Mar-10 01-Apr-10 01-May-10 01-Jun-10 01-Jul-10 01-Aug-10 01-Sep-10 01-Oct-10 01-Nov-10 HDFC -12.02 -13.33 0.51 0.00 0.00 -16.03 0.00 7.64 -20.85 -13.60 0.60 -0.56 -3.87 -4.33 19.52 17.97 13.16 2.50 7.55 8.15 3.86 3.94 3.21 2.15 -2.75 3.11 2.82 -1.91 3.54 4.53 3.88 6.30 3.41 -0.75 -2.41 BIRLA SUN LIFE -13.73 -11.21 1.48 1.71 -10.86 -8.77 6.61 -6.74 -20.94 -11.12 0.48 -0.87 -2.56 -0.69 18.90 17.28 11.59 -2.76 6.99 5.62 1.37 1.36 4.01 2.17 -5.33 4.59 3.37 -5.37 1.86 3.82 3.50 6.33 0.88 -0.25 -0.47 RELIANCE -1.82 -10.34 2.84 -0.90 -4.60 -4.76 4.04 -0.77 -16.55 3.98 -7.09 -0.71 -0.90 1.19 7.14 7.47 4.58 9.45 -0.69 1.51 5.11 -1.36 5.28 20.24 -2.07 2.42 1.53 -2.56 4.88 2.84 2.52 4.42 -0.63 -3.57 1.62 LIC -15.08 -12.28 2.54 1.23 -12.40 -7.67 6.67 -4.69 -21.57 -10.53 3.07 -1.67 -3.50 1.00 17.43 18.74 10.55 -1.46 3.91 6.01 -0.24 -1.62 3.47 0.53 -4.78 4.18 1.69 -4.06 2.89 4.35 2.12 6.74 3.99 -1.42 -1.58 PRINCIPAL -14.89 -15.75 -4.83 0.44 -11.46 -11.62 5.82 -6.19 -26.02 -13.59 0.62 -2.02 -5.60 -1.16 17.42 15.26 10.09 0.94 6.31 6.53 2.86 1.94 2.57 0.80 -3.19 4.30 1.91 -3.45 2.28 3.50 2.57 5.05 3.38 -0.48 -2.38
Analisys of Rate of Return of Equity Tax Sever (ELSS) Scheme

30.00
Percentage return (%)
20.00 10.00 0.00 -10.00 -20.00 -30.00 01/Jul/08 01/Jul/09 01/Feb/08 01/Sep/08 01/Feb/09 01/Sep/09 01/Feb/10 01/Jul/10 01/Dec/08 01/Dec/09 01/Sep/10 01/May/08 01/May/09 01/May/10 01/Aug/08 01/Aug/09 01/Mar/08 01/Mar/09 01/Mar/10 01/Aug/10 01/Nov/08 01/Nov/09 01/Nov/10 01/Dec/10 01/Apr/08 01/Apr/09 01/Apr/10 01/Jun/08 01/Jun/09 01/Oct/08 01/Oct/09 01/Jun/10 01/Jan/08 01/Jan/09 01/Jan/10 01/Oct/10
HDFC
BIRLA SUN LIFE
RELIENCE
LIC
PRINCIPAL
Interpretation: The above graph represents average monthly movement of return for chosen five Mutual fund Equity tax sever (ELSS) scheme. One can easily infer from the above graph that return series of all Companies scheme went down during 1-Sep-08 after then return series of Principal, Reliance & Birla sun life went up during 1-April-2009. Then again return series of Reliance went up during 1-Dec-09. Navnirman Institute of Management 54
Average Return & Standard Deviation Equity Tax Sever (ELSS) Scheme Of Five Companies.
HDFC 0.74 8.51
BIRLA SUN LIFE 0.07 8.11
RELIANCE 0.96 6.11
LIC -0.10 8.15
PRINCIPAL -0.80 8.68
Interpretation: Above table shows the average return and standard deviation of Equity tax sever (ELSS) scheme of five Mutual fund Companies. It is shown in above table that average return of HDFC, Birla Sun Life, Reliance, LIC and Principal are 0.74, 0.07, 0.96, -0.10 and -0.80 respectively. Whereas standard deviation of HDFC, Birla Sun Life, Reliance, LIC and Principal are 8.51, 8.11, 6.11, 8.15 and 8.68 respectively. It is clear from the above table that Reliance yields highest return whereas is having minimum S.D as compared to other four Companies. So if one wants invest money in Equity tax sever (ELSS) scheme one should go with Reliance and if more than one then HDFC and Birla Sun life could rank second and third respectively.
5.1.3). Equity Index Sensex Scheme:The below table is showing monthly average NAV of four Mutual fund Companies in Equity Index Sensex scheme for 3 years from Jan-2008 to Dec-2010. Here, Reliance Company doesnt provide this scheme. So data is not mention in below table. NAV of Equity Index Sensex Fund Scheme
Months 01-Jan-08 01-Feb-08 01-Mar-08 01-Apr-08 01-May-08 01-Jun-08 01-Jul-08 01-Aug-08 01-Sep-08 01-Oct-08 01-Nov-08 01-Dec-08 01-Jan-09 01-Feb-09 01-Mar-09 01-Apr-09 01-May-09 01-Jun-09 01-Jul-09 01-Aug-09 01-Sep-09 01-Oct-09 01-Nov-09 01-Dec-09 01-Jan-10 01-Feb-10 01-Mar-10 01-Apr-10 01-May-10 01-Jun-10 01-Jul-10 01-Aug-10 01-Sep-10 01-Oct-10 01-Nov-10 01-Dec-10 HDFC 171.41 153.75 137.71 142.96 145.69 128.75 119.22 128.10 120.69 92.49 81.37 82.63 80.18 77.46 78.25 94.98 111.18 124.00 122.73 129.27 137.49 139.13 140.07 143.13 142.77 136.28 144.56 146.28 139.71 144.17 148.86 151.72 162.54 169.28 167.69 166.55 BIRLA SUN LIFE 58.74 52.91 48.33 49.74 50.22 44.34 41.11 44.24 41.44 32.25 28.10 29.00 28.40 27.98 28.83 34.34 40.19 44.37 43.49 45.72 48.77 49.20 49.59 50.97 50.96 48.51 51.52 52.38 50.09 51.62 53.47 54.46 58.85 60.56 59.90 59.78 LIC 38.10 34.28 32.01 33.77 34.11 29.57 26.61 28.48 26.66 19.99 17.90 18.32 17.99 17.42 17.75 21.49 25.21 27.78 27.58 28.84 30.63 31.01 31.19 31.86 31.75 30.32 32.27 32.72 31.32 32.26 33.38 33.91 36.34 37.88 37.50 32.72 PRINCIPAL 36.16 32.61 29.94 30.97 31.16 27.69 25.89 27.63 26.08 19.83 17.42 17.57 15.75 15.44 15.79 18.93 22.22 24.29 23.76 25.02 26.74 27.02 27.26 27.93 27.86 26.64 28.31 28.74 27.47 28.34 29.30 29.82 31.94 33.23 32.88 27.93
Comparision of NAV of Equity Index Sensex Fund Scheme

180.00 160.00
Monthly Avg. NAV
140.00 120.00 100.00 80.00 60.00 40.00 20.00 0.00 01/Jul/08 01/Jul/09 01/Feb/08 01/Sep/08 01/Feb/09 01/Sep/09 01/Feb/10 01/Jul/10 01/May/08 01/May/09 01/May/10 01/Dec/08 01/Dec/09 01/Sep/10 01/Aug/08 01/Aug/09 01/Mar/08 01/Mar/09 01/Mar/10 01/Aug/10 01/Nov/08 01/Nov/09 01/Nov/10 01/Dec/10 01/Apr/08 01/Apr/09 01/Apr/10 01/Jun/08 01/Jun/09 01/Oct/08 01/Oct/09 01/Jun/10 01/Jan/08 01/Jan/09 01/Jan/10 01/Oct/10
HDFC
BIRLA SUN LIFE
LIC
PRINCIPAL
Interpretation:The above graph represents average monthly movement of NAV for chosen four Mutual fund Equity Index Sensex fund scheme. One can easily infer from the above graph that in spite of difference in NAV value of all Companies scheme. The all move in more or less same direction with almost same magnitude.
The below table is showing monthly average rate of return of four Mutual fund Companies in Equity Index Sensex scheme for 3 years from Jan-2008 to Dec2010. Rate of Return of NAV of Equity Index Sensex Fund Scheme
Months 01-Jan-08 01-Feb-08 01-Mar-08 01-Apr-08 01-May-08 01-Jun-08 01-Jul-08 01-Aug-08 01-Sep-08 01-Oct-08 01-Nov-08 01-Dec-08 01-Jan-09 01-Feb-09 01-Mar-09 01-Apr-09 01-May-09 01-Jun-09 01-Jul-09 01-Aug-09 01-Sep-09 01-Oct-09 01-Nov-09 01-Dec-09 01-Jan-10 01-Feb-10 01-Mar-10 01-Apr-10 01-May-10 01-Jun-10 01-Jul-10 01-Aug-10 01-Sep-10 01-Oct-10 01-Nov-10 HDFC -10.31 -10.43 3.81 1.91 -11.63 -7.40 7.44 -5.78 -23.37 -12.02 1.55 -2.97 -3.38 1.01 21.38 17.06 11.53 -1.02 5.33 6.36 1.19 0.68 2.18 -0.25 -4.54 6.07 1.19 -4.49 3.20 3.25 1.92 7.13 4.15 -0.94 -0.68 BIRLA SUN LIFE -9.92 -8.67 2.94 0.97 -11.71 -7.28 7.61 -6.32 -22.18 -12.86 3.18 -2.04 -1.50 3.04 19.11 17.06 10.40 -2.00 5.14 6.65 0.89 0.80 2.78 -0.03 -4.81 6.22 1.66 -4.37 3.05 3.59 1.85 8.07 2.90 -1.09 -0.20 LIC -10.02 -6.61 5.48 1.03 -13.32 -10.02 7.03 -6.38 -25.04 -10.43 2.34 -1.81 -3.14 1.90 21.06 17.32 10.17 -0.72 4.56 6.23 1.25 0.57 2.15 -0.36 -4.49 6.40 1.41 -4.29 3.00 3.49 1.59 7.16 4.24 -1.02 -12.75 PRINCIPAL -9.80 -8.19 3.43 0.60 -11.11 -6.53 6.73 -5.62 -23.96 -12.17 0.87 -10.37 -1.93 2.23 19.89 17.43 9.28 -2.16 5.30 6.88 1.02 0.88 2.48 -0.25 -4.39 6.27 1.53 -4.41 3.15 3.41 1.75 7.11 4.06 -1.06 -15.05
Analysis of Rate of Return of Equity Index Sensex Fund Scheme

30.00
Percentage return(%)
20.00 10.00 0.00 -10.00 -20.00 -30.00 01/Jul/08 01/Jul/09 01/Feb/08 01/Sep/08 01/Feb/09 01/Sep/09 01/Feb/10 01/Jul/10 01/Dec/08 01/Dec/09 01/Sep/10 01/May/08 01/May/09 01/May/10 01/Aug/08 01/Aug/09 01/Mar/08 01/Mar/09 01/Mar/10 01/Aug/10 01/Nov/08 01/Nov/09 01/Nov/10 01/Dec/10 01/Apr/08 01/Apr/09 01/Apr/10 01/Jun/08 01/Jun/09 01/Oct/08 01/Oct/09 01/Jun/10 01/Jan/08 01/Jan/09 01/Jan/10 01/Oct/10
HDFC
BIRLA SUN LIFE
LIC
PRINCIPAL
Interpretation:The above graph represents average monthly movement of return for chosen four Mutual fund Equity Index Sensex fund scheme. One can easily infer from the above graph that return series of all Companies scheme went down during 1-Sep-08 after then return series all Companies scheme went up during 1-March-2009. After then medium fluctuate during the every Months. And at the end of year 1-Nov-2010 again return series all Companies scheme went down.
Average Return & Standard Deviation Equity Index Sensex Scheme of Five Companies.
HDFC
Average return Std deviation 0.26 8.32
BIRLA SUN LIFE

0.37 8.01
LIC
-0.06 8.66
PRINCIPAL
-0.36 8.62
Interpretation:Above table shows the average return and standard deviation of Equity Index Sensex scheme of four Mutual fund Companies. It is shown in above table that average return of HDFC, Birla Sun Life, LIC and Principal are 0.26, 0.37, -0.06 and 0.36 respectively. Whereas standard deviation of HDFC, Birla Sun Life, LIC and Principal are respectively 8.32, 8.01, 8.66 and 8.62 respectively. It is clear from the above table that Birla sun life yields highest return whereas is having minimum S.D as compared to other three companies. So if one wants invest money in equity Index Sensex scheme one should go with Birla sun life and if more than one then HDFC could second rank.
5.1.4). Equity Top-100 Scheme:The below table is showing monthly average NAV of four Mutual fund Companies in Equity Top-100 scheme for 3 years from Jan-2008 to Dec-2010. Here, Reliance Company doesnt provide this scheme. So data is not mention in below table. NAV of Equity Top 100 Scheme
Months 01-Jan-08 01-Feb-08 01-Mar-08 01-Apr-08 01-May-08 01-Jun-08 01-Jul-08 01-Aug-08 01-Sep-08 01-Oct-08 01-Nov-08 01-Dec-08 01-Jan-09 01-Feb-09 01-Mar-09 01-Apr-09 01-May-09 01-Jun-09 01-Jul-09 01-Aug-09 01-Sep-09 01-Oct-09 01-Nov-09 01-Dec-09 01-Jan-10 01-Feb-10 01-Mar-10 01-Apr-10 01-May-10 01-Jun-10 01-Jul-10 01-Aug-10 01-Sep-10 01-Oct-10 01-Nov-10 01-Dec-10 HDFC 162 147.36 132.77 137.04 140.28 126.83 117.86 129 125.5 100 88.84 90.45 89.33 85.96 86.37 105.03 124.63 142.96 146.53 154.48 164.27 171.59 175.28 178.18 178.55 172.59 181.05 185.91 182.69 189.14 197.16 204.8 218.77 227.25 227.59 222.26 BIRLA SUN LIFE 21.74 19.21 17.04 17.60 17.91 16.06 14.82 15.57 14.90 12.37 11.39 11.60 11.40 11.18 11.18 12.86 14.89 16.55 16.47 17.55 18.68 19.08 19.54 20.21 20.47 19.43 20.29 20.69 19.91 20.53 21.25 21.90 23.20 24.09 24.06 23.80 LIC 9.65 9.16 8.24 8.25 8.42 7.48 6.87 7.38 7.18 5.64 4.97 5.01 5.07 4.95 4.81 5.58 6.32 7.19 7.01 7.28 7.56 7.78 7.65 7.93 8.17 7.64 8.03 8.19 7.80 7.91 8.19 8.30 8.65 9.13 8.98 8.77 PRINCIPAL 24.44 22.58 20.89 20.82 20.41 18.97 18.30 18.87 18.44 16.23 14.99 15.06 15.37 15.08 14.82 15.98 16.74 17.85 17.94 18.76 17.81 17.23 16.99 17.50 17.72 17.00 18.13 20.05 20.68 20.80 21.35 22.80 23.80 24.16 25.76 27.83
Comparision of NAV of Top-100 Scheme

250
Monthly Avg. NAV
200
150
100
50
0 01/May/08 01/May/09 01/May/10 01/Jul/08 01/Jul/09 01/Feb/08 01/Sep/08 01/Feb/09 01/Sep/09 01/Feb/10 01/Jul/10 01/Dec/08 01/Dec/09 01/Sep/10 01/Aug/08 01/Aug/09 01/Mar/08 01/Mar/09 01/Mar/10 01/Aug/10 01/Nov/08 01/Nov/09 01/Nov/10 01/Dec/10 01/Apr/08 01/Apr/09 01/Apr/10 01/Jun/08 01/Jun/09 01/Oct/08 01/Oct/09 01/Jun/10 01/Jan/08 01/Jan/09 01/Jan/10 01/Oct/10
HDFC
BIRLA SUN LIFE
LIC
PRINCIPAL
Interpretation:The above graph represents average monthly movement of NAV for chosen four Mutual fund Equity Top-100 scheme. One can easily infer from the above graph that in spite of difference in NAV value of Birla sun life company scheme is more than other three companies. The NAV value of three company move direction with almost same magnitude.
The below table is showing monthly average rate of return of four Mutual fund Companies in Equity Top-100 scheme for 3 years from Jan-2008 to Dec-2010. Rate of Return of Equity Top - 100 Scheme
Months 01-Jan-08 01-Feb-08 01-Mar-08 01-Apr-08 01-May-08 01-Jun-08 01-Jul-08 01-Aug-08 01-Sep-08 01-Oct-08 01-Nov-08 01-Dec-08 01-Jan-09 01-Feb-09 01-Mar-09 01-Apr-09 01-May-09 01-Jun-09 01-Jul-09 01-Aug-09 01-Sep-09 01-Oct-09 01-Nov-09 01-Dec-09 01-Jan-10 01-Feb-10 01-Mar-10 01-Apr-10 01-May-10 01-Jun-10 01-Jul-10 01-Aug-10 01-Sep-10 01-Oct-10 01-Nov-10 HDFC -9.04 -9.90 3.22 2.36 -9.59 -7.07 9.45 -2.71 -20.32 -11.16 1.81 -1.24 -3.77 0.48 21.60 18.66 14.71 2.50 5.43 6.34 4.46 2.15 1.65 0.21 -3.34 4.90 2.68 -1.73 3.53 4.24 3.88 6.82 3.88 0.15 -2.34 BIRLA SUN LIFE -11.64 -11.30 3.30 1.76 -10.32 -7.76 5.10 -4.34 -16.96 -7.95 1.89 -1.75 -1.93 0.01 15.04 15.74 11.17 -0.48 6.57 6.40 2.15 2.44 3.43 1.27 -5.06 4.40 1.97 -3.75 3.10 3.53 3.03 5.96 3.80 -0.13 -1.06 LIC -5.09 -10.00 0.10 2.04 -11.16 -8.19 7.46 -2.74 -21.40 -11.93 0.92 1.11 -2.30 -2.81 15.85 13.31 13.74 -2.43 3.89 3.83 2.91 -1.73 3.73 2.98 -6.53 5.14 2.02 -4.81 1.46 3.56 1.37 4.11 5.64 -1.71 -2.30 PRINCIPAL -7.59 -7.52 -0.30 -2.00 -7.03 -3.56 3.15 -2.30 -11.98 -7.64 0.50 2.04 -1.88 -1.76 7.87 4.74 6.63 0.50 4.57 -5.04 -3.24 -1.41 3.00 1.27 -4.07 6.65 10.59 3.17 0.55 2.63 6.82 4.40 1.50 6.63 8.02
Analysis of Rate of Return of Top-100 Scheme

25.00 20.00
Percentage Return (%)
15.00 10.00 5.00 0.00 -5.00 -10.00
-15.00
-20.00 -25.00 01/Jul/08 01/Jul/09 01/May/08 01/May/09 01/May/10 01/Feb/08 01/Sep/08 01/Feb/09 01/Sep/09 01/Feb/10 01/Jul/10 01/Dec/08 01/Dec/09 01/Aug/08 01/Aug/09 01/Mar/08 01/Mar/09 01/Mar/10 01/Aug/10 01/Sep/10 01/Apr/08 01/Apr/09 01/Apr/10 01/Jan/08 01/Jan/09 01/Jun/08 01/Jun/09 01/Jan/10 01/Oct/08 01/Oct/09 01/Jun/10 01/Nov/08 01/Nov/09 01/Oct/10 01/Nov/10
HDFC
BIRLA SUN LIFE
LIC
PRINCIPAL
Interpretation:The above graph represents average monthly movement of return for chosen four Mutual fund Equity Top-100 scheme. One can easily infer from the above graph that return series of LIC & Birla sun life scheme went down during 1-Sep-08 after then return series of HDFC scheme very huge went up during 1-March-09. And return series of LIC & HDFC scheme went up during 1-April-09. Return series of principal scheme same went up & down during this three year. Navnirman Institute of Management 64
Average Return & Standard Deviation Equity Top-100 Scheme of Five Companies.
HDFC 1.23 8.10 BIRLA SUN LIFE 0.50 7.06 LIC 0.00 7.39 PRINCIPAL 0.51 5.32
Interpretation:Above table shows the average return and standard deviation of Equity Top100 scheme of four Mutual fund Companies. It is shown in above table that average return of HDFC, Birla Sun Life, LIC and Principal are 1.23, 0.50, 0.00, and 0.51 respectively. Whereas standard deviation of HDFC, Birla Sun Life, LIC and Principal are 8.10, 7.06, 7.39 and 5.32 respectively. It is clear from the above table that HDFC yields highest return whereas is having maximum S.D as compared to other three Companies. So its risk is very high when principal gives less return as compare to HDFC but its risk is very low compare to three companies. So if one wants invest money in equity top-100 schemes one should go with HDFC as well as principal. And if more than one then Birla Sun life could second rank.
5.1.5). Equity Opportunity Scheme:The below table is showing monthly average NAV of four Mutual fund Companies in Equity opportunity scheme for 3 years from Jan-2008 to Dec-2010. Here, Principal Company doesnt provide this scheme. So data is not mention in below table. NAV of Equity Opportunity Fund Scheme
Months 01-Jan-08 01-Feb-08 01-Mar-08 01-Apr-08 01-May-08 01-Jun-08 01-Jul-08 01-Aug-08 01-Sep-08 01-Oct-08 01-Nov-08 01-Dec-08 01-Jan-09 01-Feb-09 01-Mar-09 01-Apr-09 01-May-09 01-Jun-09 01-Jul-09 01-Aug-09 01-Sep-09 01-Oct-09 01-Nov-09 01-Dec-09 01-Jan-10 01-Feb-10 01-Mar-10 01-Apr-10 01-May-10 01-Jun-10 01-Jul-10 01-Aug-10 01-Sep-10 01-Oct-10 01-Nov-10 01-Dec-10 HDFC 12.59 11.14 9.61 9.81 9.9 9.07 8.37 9.05 8.37 6.9 6.08 6.08 6.09 5.77 5.57 6.61 7.7 8.84 9.02 9.8 10.63 11.12 11.49 12.06 12.55 12.3 12.88 12.57 13.32 13.82 14.62 15.14 16.06 16.69 16.78 16.08 BIRLA SUN LIFE 57.57 51.30 45.98 47.54 48.55 43.70 39.11 40.66 37.89 28.17 24.50 23.57 22.77 21.67 22.04 26.61 31.76 36.04 36.49 41.04 44.18 45.51 47.06 48.94 50.48 48.86 51.64 53.55 51.01 51.31 53.34 53.67 55.60 57.92 57.55 57.22 RELIANCE 25.31 24.42 22.04 22.62 22.19 21.30 20.25 21.13 20.77 16.40 17.55 16.05 15.49 15.25 15.56 16.74 18.17 18.98 20.92 21.13 22.10 23.25 23.24 25.11 31.10 30.61 31.68 32.20 31.45 33.17 34.28 35.04 36.61 36.22 35.05 36.11 LIC 23.50 20.54 17.77 18.00 17.78 15.57 15.01 15.97 15.13 11.60 10.47 10.91 10.72 10.36 10.42 12.22 14.28 15.60 15.42 15.98 16.92 16.91 16.83 17.29 17.52 16.66 17.50 17.75 16.92 17.38 18.10 18.46 19.78 20.53 20.25 20.07
Comparision of NAV of Equity Opportunity Scheme

70 60 50 40 30 20
Avg. Monthly NAV
10
0 01/Jul/08 01/Jul/09 01/Feb/08 01/Sep/08 01/Feb/09 01/Sep/09 01/Feb/10 01/Jul/10 01/May/08 01/May/09 01/May/10 01/Dec/08 01/Dec/09 01/Sep/10 01/Aug/08 01/Aug/09 01/Aug/10 01/Mar/08 01/Mar/09 01/Mar/10 01/Nov/08 01/Nov/09 01/Nov/10 01/Dec/10 01/Apr/08 01/Apr/09 01/Apr/10 01/Jan/08 01/Jan/09 01/Oct/08 01/Oct/09 01/Jan/10 01/Oct/10 01/Jun/08 01/Jun/09 01/Jun/10
HDFC
BIRLA SUN LIFE
RELIENCE
LIC
Interpretation:The above graph represents average monthly movement of NAV for chosen four Mutual fund Equity opportunity scheme. One can easily infer from the above graph that in spite of difference in NAV value all companies scheme. The all move in more or less same direction with almost same magnitude. Navnirman Institute of Management 67
Comparison of Five Mutual fund Companies in Equity & Debt Funds Schemes The below table is showing monthly average rate of return of four Mutual fund Companies in Equity opportunity scheme for 3 years from Jan-2008 to Dec2010. Rate of Return of NAV of Equity Opportunity Fund Scheme
Months 01-Jan-08 01-Feb-08 01-Mar-08 01-Apr-08 01-May-08 01-Jun-08 01-Jul-08 01-Aug-08 01-Sep-08 01-Oct-08 01-Nov-08 01-Dec-08 01-Jan-09 01-Feb-09 01-Mar-09 01-Apr-09 01-May-09 01-Jun-09 01-Jul-09 01-Aug-09 01-Sep-09 01-Oct-09 01-Nov-09 01-Dec-09 01-Jan-10 01-Feb-10 01-Mar-10 01-Apr-10 01-May-10 01-Jun-10 01-Jul-10 01-Aug-10 01-Sep-10 01-Oct-10 01-Nov-10 HDFC -11.52 -13.73 2.08 0.92 -8.38 -7.72 8.12 -7.51 -17.56 -11.88 0.00 0.16 -5.25 -3.47 18.67 16.49 14.81 2.04 8.65 8.47 4.61 3.33 4.96 4.06 -1.99 4.72 -2.41 5.97 3.75 5.79 3.56 6.08 3.92 0.54 -4.17 BIRLA SUN LIFE -10.90 -10.37 3.38 2.14 -9.99 -10.51 3.96 -6.80 -25.64 -13.04 -3.78 -3.40 -4.83 1.69 20.77 19.32 13.48 1.25 12.48 7.65 3.01 3.40 3.99 3.16 -3.21 5.68 3.69 -4.73 0.58 3.97 0.62 3.60 4.16 -0.64 -0.58 RELIANCE -3.51 -9.77 2.64 -1.89 -4.02 -4.95 4.35 -1.70 -21.04 6.99 -8.53 -3.47 -1.55 2.03 7.55 8.54 4.49 10.22 1.01 4.58 5.20 -0.02 8.03 23.86 -1.60 3.50 1.66 -2.35 5.47 3.36 2.21 4.49 -1.06 -3.22 3.00 LIC -12.59 -13.52 1.34 -1.23 -12.43 -3.62 6.43 -5.30 -23.31 -9.72 4.13 -1.70 -3.32 0.58 17.19 16.92 9.25 -1.21 3.69 5.85 -0.08 -0.47 2.73 1.33 -4.90 5.02 1.46 -4.70 2.73 4.15 1.97 7.17 3.80 -1.34 -0.93
Analysis of Rate of Return of Equity Opportunity Scheme

30.00 20.00 10.00 0.00 -10.00 -20.00 -30.00 01/Jul/08 01/Jul/09 01/May/08 01/May/09 01/May/10 01/Feb/08 01/Sep/08 01/Feb/09 01/Sep/09 01/Feb/10 01/Jul/10 01/Dec/08 01/Dec/09 01/Aug/08 01/Aug/09 01/Mar/08 01/Mar/09 01/Mar/10 01/Aug/10 01/Sep/10 01/Apr/08 01/Apr/09 01/Apr/10 01/Jan/08 01/Jan/09 01/Jun/08 01/Jun/09 01/Jan/10 01/Oct/08 01/Oct/09 01/Jun/10 01/Nov/08 01/Nov/09 01/Oct/10 01/Nov/10
HDFC
BIRLA SUN LIFE
RELIENCE
LIC
Interpretation:The above graph represents average monthly movement of return for chosen four Mutual fund Equity opportunity scheme. One can easily infer from the above graph that return series of all companies scheme went down during 1-Sep-08 after then return series of LIC, HDFC & Birla sun life went up during 1-March-2009. Then again Reliance went up during 1-Dec-09. Navnirman Institute of Management 69
Average Return & Standard Deviation Equity Opportunity Scheme of Five Companies.
HDFC
RELIANCE 1.27 7.18
LIC -0.13 7.95
1.03 8.21
Interpretation:Above table shows the average return and standard deviation of Equity opportunity scheme of four mutual fund Companies. It is shown in above table that average return of HDFC, Birla Sun Life, Reliance and LIC are 1.03, 0.39, 1.27 and 0.13 respectively. Whereas standard deviation of HDFC, Birla Sun Life, Reliance and LIC are 8.21, 9.02, 7.18, and 7.95 respectively. It is clear from the above table that Reliance yields highest return whereas is having minimum S.D as compared to other three companies. So if one wants invest money in Equity opportunity scheme one should go with Reliance and if more than one then HDFC and Birla Sun life could rank second and third respectively
5.2) Debt Fund:Company Name HDFC BIRLA SUN LIFE Income fund Floating long term fund DEBT FUND Gilt long term fund Saving fund RELIANCE LIC PRINCIPAL
5.2.1). Debt Income Fund Scheme:The below table is showing monthly average NAV of five mutual fund companies in Debt Income scheme for 3 years from Jan-2008 to Dec-2010. NAV of Debt Income Fund
Months 01-Jan-08 01-Feb-08 01-Mar-08 01-Apr-08 01-May-08 01-Jun-08 01-Jul-08 01-Aug-08 01-Sep-08 01-Oct-08 01-Nov-08 01-Dec-08 01-Jan-09 01-Feb-09 01-Mar-09 01-Apr-09 01-May-09 01-Jun-09 01-Jul-09 01-Aug-09 01-Sep-09 01-Oct-09 01-Nov-09 01-Dec-09 01-Jan-10 01-Feb-10 01-Mar-10 01-Apr-10 01-May-10 01-Jun-10 01-Jul-10 01-Aug-10 01-Sep-10 01-Oct-10 01-Nov-10 01-Dec-10 HDFC 18.23 18.34 18.2 17.99 18.16 18.02 17.87 17.92 18.03 17.92 18.3 19.99 20.45 20.06 19.99 20.83 20.84 20.78 20.96 20.81 20.87 20.9 21.17 21.22 21.31 21.24 21.32 21.54 21.8 21.83 21.92 21.93 21.08 21.12 22.22 22.3 BIRLA SUN LIFE 29.63 29.85 29.57 29.42 29.69 29.67 29.61 29.81 30.22 30.03 30.65 33.80 34.26 33.07 32.58 33.06 32.79 32.78 33.04 32.78 33.11 33.32 33.65 33.74 33.78 33.77 33.87 34.11 34.40 34.43 34.55 34.62 34.77 34.87 35.00 34.96 RELIANCE 25.96 25.86 25.77 25.63 25.82 25.61 25.55 25.73 25.80 26.10 26.42 28.63 30.04 29.58 29.42 30.16 30.14 29.99 30.29 30.05 30.05 30.08 30.34 30.25 30.86 30.86 30.93 31.04 31.21 31.24 31.29 31.18 31.27 31.31 31.33 31.50 LIC 10.53 10.61 10.69 10.76 10.84 10.92 11.00 11.09 11.18 11.29 11.39 11.48 11.57 11.65 11.71 11.78 11.83 11.88 11.94 12.00 12.04 12.10 12.14 12.19 12.24 12.29 12.34 12.40 12.44 12.50 12.55 12.61 12.67 12.73 12.79 12.85 PRINCIPAL 12.20 12.21 12.13 12.34 12.46 12.42 12.43 12.42 12.33 12.25 12.22 12.31 12.47 12.44 12.29 12.95 13.02 13.02 12.98 12.93 13.00 12.71 12.74 12.95 13.40 12.11 11.90 12.05 12.13 12.10 12.09 12.15 12.12 12.14 12.28 12.38
Comparision of Nav of Debt Income Fund Scheme

40
Monthly Avg. NAV
35 30 25 20 15 10 5 0 01/May/08 01/May/09 01/May/10 01/Jul/08 01/Jul/09 01/Feb/08 01/Sep/08 01/Feb/09 01/Sep/09 01/Feb/10 01/Jul/10 01/Dec/08 01/Dec/09 01/Sep/10 01/Aug/08 01/Aug/09 01/Mar/08 01/Mar/09 01/Mar/10 01/Aug/10 01/Nov/08 01/Nov/09 01/Nov/10 01/Dec/10 01/Apr/08 01/Apr/09 01/Apr/10 01/Jun/08 01/Jun/09 01/Oct/08 01/Oct/09 01/Jun/10 01/Jan/08 01/Jan/09 01/Jan/10 01/Oct/10
HDFC
BIRLA SUN LIFE
RELIENCE
LIC
PRINCIPAL
Interpretation:The above graph represents average monthly movement of NAV for chosen five Mutual fund Debt Income fund scheme. One can easily infer from the above graph that in spite of difference in NAV value all Companies scheme. The all move in more or less same direction with almost same magnitude.
Comparison of Five Mutual fund Companies in Equity & Debt Funds Schemes The below table is showing monthly average rate of return of five Mutual fund Companies in Debt Income scheme for 3 years from Jan-2008 to Dec-2010 Rate of return of Debt income fund scheme
Months 01-Jan-08 01-Feb-08 01-Mar-08 01-Apr-08 01-May-08 01-Jun-08 01-Jul-08 01-Aug-08 01-Sep-08 01-Oct-08 01-Nov-08 01-Dec-08 01-Jan-09 01-Feb-09 01-Mar-09 01-Apr-09 01-May-09 01-Jun-09 01-Jul-09 01-Aug-09 01-Sep-09 01-Oct-09 01-Nov-09 01-Dec-09 01-Jan-10 01-Feb-10 01-Mar-10 01-Apr-10 01-May-10 01-Jun-10 01-Jul-10 01-Aug-10 01-Sep-10 01-Oct-10 01-Nov-10 HDFC 0.60 -0.76 -1.15 0.94 -0.77 -0.83 0.28 0.61 -0.61 2.12 9.23 2.30 -1.91 -0.35 4.20 0.05 -0.29 0.87 -0.72 0.29 0.14 1.29 0.24 0.42 -0.33 0.38 1.03 1.21 0.14 0.41 0.05 -3.88 0.19 5.21 0.36 BIRLA SUN LIFE 0.75 -0.96 -0.48 0.89 -0.06 -0.20 0.66 1.39 -0.64 2.08 10.26 1.38 -3.47 -1.48 1.48 -0.82 -0.04 0.80 -0.77 1.01 0.62 1.00 0.25 0.12 -0.02 0.29 0.72 0.85 0.09 0.35 0.19 0.45 0.29 0.36 -0.13 RELIANCE -0.37 -0.34 -0.55 0.73 -0.82 -0.22 0.69 0.27 1.17 1.22 8.37 4.93 -1.53 -0.53 2.50 -0.05 -0.50 0.98 -0.79 -0.01 0.10 0.88 -0.30 2.02 0.01 0.22 0.34 0.55 0.10 0.15 -0.35 0.30 0.11 0.07 0.56 LIC 0.80 0.74 0.71 0.73 0.67 0.81 0.83 0.80 0.98 0.85 0.79 0.83 0.65 0.54 0.54 0.42 0.44 0.55 0.44 0.39 0.46 0.38 0.37 0.44 0.39 0.40 0.47 0.39 0.42 0.47 0.45 0.45 0.46 0.50 0.46 PRINCIPAL 0.10 -0.63 1.72 0.97 -0.31 0.01 -0.07 -0.71 -0.62 -0.31 0.78 1.31 -0.24 -1.23 5.41 0.47 0.07 -0.37 -0.35 0.50 -2.22 0.29 1.62 3.50 -9.65 -1.72 1.25 0.68 -0.29 -0.03 0.44 -0.21 0.16 1.15 0.79
Analysis of Rate of Return of Debt Income Fund Scheme

15.00
10.00 5.00 0.00 -5.00 -10.00 -15.00 01/Jul/08 01/Jul/09 01/Feb/08 01/Sep/08 01/Feb/09 01/Sep/09 01/Feb/10 01/Jul/10 01/Dec/08 01/Dec/09 01/Sep/10 01/May/08 01/May/09 01/May/10 01/Mar/08 01/Mar/09 01/Mar/10 01/Aug/08 01/Aug/09 01/Aug/10 01/Nov/08 01/Nov/09 01/Nov/10 01/Dec/10 01/Apr/08 01/Apr/09 01/Apr/10 01/Jun/08 01/Jun/09 01/Oct/08 01/Oct/09 01/Jun/10 01/Jan/08 01/Jan/09 01/Jan/10 01/Oct/10
HDFC
BIRLA SUN LIFE
RELIENCE
LIC
PRINCIPAL
Interpretation:The above graph represents average monthly movement of return for chosen five Mutual fund Debt Income scheme. One can easily infer from the above graph that return series of HDFC, Birla sun life, Reliance scheme went up during 1-Nov-08 after then return series of Principal went up during year 1-March-09 and again return series of Principal went down during the year 1-Jan-10.While return series of LIC went stable move. Navnirman Institute of Management 75
Average Return & Standard Deviation Debt Income Scheme of Five Companies.
HDFC Average return Std deviation 0.60 1.52
RELIANCE 0.57 2.27
LIC 0.57 0.69
PRINCIPAL 0.07 0.37
Interpretation:Above table shows the average return and standard deviation of Debt Income scheme of five mutual fund Companies. It is shown in above table that average return of HDFC, Birla Sun Life, Reliance, LIC and Principal are 0.60, 0.49, 0.57, 0.57 and 0.07 respectively. Whereas standard deviation of HDFC, Birla Sun Life, Reliance, LIC and Principal are 1.52, 1.97, 2.27, 0.69 and 0.37 respectively. It is clear from the above table that HDFC yields highest return whereas is having minimum S.D as compared to Birla sun life & Reliance companies. So if one wants invest money in Debt income schemes one should go with HDFC. While Reliance & LIC yields same return, but S.D of LIC is less as compare to Reliance Company. So Risk of LIC is less risk as compare to Reliance Company. if more than one then LIC and Reliance could rank second and third respectively.
5.2.2). Debt Floating Rate Long Term Fund Scheme:The below table is showing monthly average NAV of four mutual fund companies in Debt floating rate long term fund scheme for 3 years from Jan-2008 to Dec-2010.Here, Principal Company doesnt provide this scheme. So data is not mention in below table NAV of Debt Floating Rate Long Term Scheme
Months 01-Jan-08 01-Feb-08 01-Mar-08 01-Apr-08 01-May-08 01-Jun-08 01-Jul-08 01-Aug-08 01-Sep-08 01-Oct-08 01-Nov-08 01-Dec-08 01-Jan-09 01-Feb-09 01-Mar-09 01-Apr-09 01-May-09 01-Jun-09 01-Jul-09 01-Aug-09 01-Sep-09 01-Oct-09 01-Nov-09 01-Dec-09 01-Jan-10 01-Feb-10 01-Mar-10 01-Apr-10 01-May-10 01-Jun-10 01-Jul-10 01-Aug-10 01-Sep-10 01-Oct-10 01-Nov-10 01-Dec-10 HDFC 13.18 13.3 13.39 13.49 13.61 13.69 13.82 13.94 14.06 14.17 14.27 14.38 14.51 14.61 14.7 14.85 14.92 15.06 15.19 15.23 15.33 15.44 15.44 15.61 15.69 15.75 15.8 15.89 15.97 16.01 16.08 16.11 16.2 16.27 16.34 16.4 BIRLA SUN LIFE 13.18 13.28 13.38 13.48 13.59 13.68 13.78 13.90 14.00 14.12 14.22 14.31 14.41 14.50 14.59 14.70 14.78 14.86 14.96 15.06 15.17 15.29 15.40 15.49 15.58 15.67 15.75 15.83 15.89 15.95 16.03 16.10 16.18 16.26 16.35 16.44 RELIANCE 12.45 12.54 12.62 12.71 12.80 12.89 12.98 13.08 13.18 13.29 13.39 13.50 13.60 13.69 13.77 13.86 13.92 13.98 14.04 14.10 14.16 14.21 14.27 14.32 14.37 14.42 14.46 14.53 14.58 14.66 14.74 14.81 14.88 14.96 15.03 15.08 LIC 12.79 12.91 13.00 13.10 13.21 13.30 13.41 13.52 13.64 13.76 13.87 13.98 14.10 14.20 14.28 14.36 14.43 14.51 14.58 14.66 14.72 14.80 14.86 14.92 14.98 15.04 15.11 15.18 15.24 15.30 15.37 15.45 15.52 15.58 15.65 15.70
Comparision of NAV of Debt Floating Rate Long Term Scheme

18
16
Monthly Avg. NAV
14 12 10 8 6 4 2 0 01/Jul/08 01/Jul/09 01/Feb/08 01/Sep/08 01/Feb/09 01/Sep/09 01/Feb/10 01/Jul/10 01/Dec/08 01/Dec/09 01/Sep/10 01/May/08 01/May/09 01/May/10 01/Aug/08 01/Aug/09 01/Mar/08 01/Mar/09 01/Mar/10 01/Aug/10 01/Nov/08 01/Nov/09 01/Nov/10 01/Dec/10 01/Apr/08 01/Apr/09 01/Apr/10 01/Jun/08 01/Jun/09 01/Oct/08 01/Oct/09 01/Jun/10 01/Jan/08 01/Jan/09 01/Jan/10 01/Oct/10
HDFC
BIRLA SUN LIFE
RELIENCE
LIC
Interpretation:The above graph represents average monthly movement of NAV for chosen four Mutual fund Debt floating rate long term scheme. One can easily infer from the above graph that in spite of difference in NAV value all companies scheme. The all move in more same direction with almost same magnitude.
Comparison of Five Mutual fund Companies in Equity & Debt Funds Schemes The below table is showing monthly average rate of return of four Mutual fund Companies in Debt floating long term scheme for 3 years from Jan-2008 to Dec-2010 Rate of Return of Debt Floating Rate Long Term Fund
Months 01-Jan-08 01-Feb-08 01-Mar-08 01-Apr-08 01-May-08 01-Jun-08 01-Jul-08 01-Aug-08 01-Sep-08 01-Oct-08 01-Nov-08 01-Dec-08 01-Jan-09 01-Feb-09 01-Mar-09 01-Apr-09 01-May-09 01-Jun-09 01-Jul-09 01-Aug-09 01-Sep-09 01-Oct-09 01-Nov-09 01-Dec-09 01-Jan-10 01-Feb-10 01-Mar-10 01-Apr-10 01-May-10 01-Jun-10 01-Jul-10 01-Aug-10 01-Sep-10 01-Oct-10 01-Nov-10 HDFC 0.91 0.68 0.75 0.89 0.59 0.95 0.87 0.86 0.78 0.71 0.77 0.90 0.69 0.62 1.02 0.47 0.94 0.86 0.26 0.66 0.72 0.00 1.10 0.51 0.38 0.32 0.57 0.50 0.25 0.44 0.19 0.56 0.43 0.43 0.37 BIRLA SUN LIFE 0.71 0.75 0.76 0.86 0.65 0.71 0.85 0.77 0.84 0.68 0.66 0.70 0.63 0.63 0.74 0.55 0.56 0.67 0.61 0.75 0.83 0.69 0.58 0.60 0.54 0.55 0.50 0.36 0.39 0.48 0.44 0.48 0.53 0.56 0.55 RELIANCE 0.69 0.65 0.72 0.67 0.71 0.71 0.77 0.79 0.80 0.79 0.76 0.75 0.70 0.56 0.63 0.45 0.45 0.42 0.44 0.40 0.38 0.38 0.35 0.37 0.36 0.31 0.43 0.37 0.57 0.52 0.47 0.51 0.49 0.48 0.32 LIC 0.90 0.73 0.80 0.84 0.65 0.83 0.80 0.87 0.90 0.83 0.78 0.83 0.74 0.58 0.55 0.45 0.55 0.54 0.53 0.43 0.49 0.41 0.42 0.44 0.39 0.43 0.46 0.40 0.42 0.48 0.46 0.47 0.42 0.42 0.31
Analysis of Rate of Return of Debt Floating Rate Long Term Scheme

1.20
1.00 0.80 0.60 0.40 0.20 0.00 01/Jul/08 01/Jul/09 01/Feb/08 01/Sep/08 01/Feb/09 01/Sep/09 01/Feb/10 01/Jul/10 01/May/08 01/May/09 01/May/10 01/Dec/08 01/Dec/09 01/Sep/10 01/Aug/08 01/Aug/09 01/Aug/10 01/Mar/08 01/Mar/09 01/Mar/10 01/Nov/08 01/Nov/09 01/Nov/10 01/Dec/10 01/Apr/08 01/Apr/09 01/Apr/10 01/Jan/08 01/Jan/09 01/Oct/08 01/Oct/09 01/Jan/10 01/Oct/10 01/Jun/08 01/Jun/09 01/Jun/10
HDFC
BIRLA SUN LIFE
RELIENCE
LIC
Interpretation:The above graph represents average monthly movement of return for chosen four Mutual fund Debt floating rate long term fund scheme. One can easily infer from the above graph that return series of HDFC scheme went more up & down. When return series of Birla sun life scheme went same up & down. Another return series of Reliance & LIC scheme went down during the year from 1-Jan-08 to 1-Dec-2010. Navnirman Institute of Management 80
Average Return & Standard Deviation Debt Floating Rate Long Term of Five Companies.
HDFC 0.63 0.26 BIRLA SUN LIFE 0.63 0.13 RELIANCE 0.55 0.16 LIC 0.59 0.18
Interpretation:Above table shows the average return and standard deviation of Debt floating rate long term scheme of four mutual fund Companies. It is shown in above table that average return of HDFC, Birla Sun Life, Reliance and LIC are 0.63, 0.63, 0.55 and 0.59 respectively. Whereas standard deviation of HDFC, Birla Sun Life, Reliance and LIC are 0.26, 0.13, 0.16 and 0.18 respectively. It is clear from the above table that HDFC and Birla sun life yields highest return whereas is having S.D of Birla sun life is less as compared to HDFC Company. So risk of Birla sun life is less as compare to HDFC. So if one wants invest money in Debt floating rate long term scheme one should go with Birla sun life. If more than one then HDFC and LIC could rank second and third respectively.
5.2.3). Debt Gilt Long Term Fund Scheme:The below table is showing monthly average NAV of four Mutual fund Companies in Debt gilt long term fund scheme for 3 years from Jan-2008 to Dec-2010.Here, LIC Company doesnt provide this scheme. So data is not mention in below table NAV of Debt Gilt Long Term Fund Scheme
Months 01-Jan-08 01-Feb-08 01-Mar-08 01-Apr-08 01-May-08 01-Jun-08 01-Jul-08 01-Aug-08 01-Sep-08 01-Oct-08 01-Nov-08 01-Dec-08 01-Jan-09 01-Feb-09 01-Mar-09 01-Apr-09 01-May-09 01-Jun-09 01-Jul-09 01-Aug-09 01-Sep-09 01-Oct-09 01-Nov-09 01-Dec-09 01-Jan-10 01-Feb-10 01-Mar-10 01-Apr-10 01-May-10 01-Jun-10 01-Jul-10 01-Aug-10 01-Sep-10 01-Oct-10 01-Nov-10 01-Dec-10 HDFC 17.02 17.24 16.91 16.52 16.83 16.69 16.67 16.8 17 17.22 17.59 19.22 19.39 18.61 18.2 18.68 18.72 18.49 18.56 18.3 18.29 18.28 18.47 18.46 18.55 18.54 18.64 18.78 19.03 19.07 19.1 19.04 19.17 19.23 19.35 19.39 BIRLA SUN LIFE 22.81 22.98 22.57 22.24 22.26 22.17 22.04 22.09 22.24 22.11 22.67 25.15 25.32 24.13 23.48 23.89 23.77 23.58 23.72 23.45 23.53 23.71 24.01 23.98 23.92 23.91 23.93 24.00 24.27 24.16 24.14 24.10 24.17 24.22 24.39 24.41 RELIANCE 10.55 10.84 10.93 10.94 10.95 10.61 10.60 10.35 10.29 10.84 11.09 12.28 12.10 11.75 11.56 11.76 11.83 11.73 11.71 11.62 11.65 11.59 11.68 11.69 11.80 11.78 11.80 11.82 11.88 11.87 11.88 11.83 11.85 11.87 11.90 11.95 PRINCIPAL 16.48 16.50 16.38 15.70 15.60 15.62 15.63 15.64 15.55 15.60 15.64 15.90 16.00 15.84 15.05 15.99 16.00 16.11 16.18 16.12 16.29 15.89 16.02 16.54 16.92 15.72 15.56 15.44 15.39 15.31 15.31 15.30 15.24 15.50 15.71 15.56
Comparision of Nav of Debt Gilt Long Term Fund Scheme

30
Monthly Avg. NAV
25 20 15 10 5 0 01/Jul/08 01/Jul/09 01/Feb/08 01/Sep/08 01/Feb/09 01/Sep/09 01/Feb/10 01/Jul/10 01/Dec/08 01/Dec/09 01/Sep/10 01/May/08 01/May/09 01/May/10 01/Mar/08 01/Mar/09 01/Mar/10 01/Aug/08 01/Aug/09 01/Aug/10 01/Nov/08 01/Nov/09 01/Nov/10 01/Dec/10 01/Apr/08 01/Apr/09 01/Apr/10 01/Jun/08 01/Jun/09 01/Oct/08 01/Oct/09 01/Jun/10 01/Jan/08 01/Jan/09 01/Jan/10 01/Oct/10
HDFC
BIRLA SUN LIFE
RELIENCE
PRINCIPAL
Interpretation:The above graph represents average monthly movement of NAV for chosen four Mutual funds Debt gilt long term scheme. One can easily infer from the above graph that in spite of difference in NAV value all Companies scheme. The all move in more or less same direction with almost same magnitude.
Comparison of Five Mutual fund Companies in Equity & Debt Funds Schemes The below table is showing monthly average rate of return of four Mutual fund companies in Debt gilt long term scheme for 3 years from Jan-2008 to Dec-2010 Rate of Return of Debt Gilt Long Term Fund Scheme
Months 01-Jan-08 01-Feb-08 01-Mar-08 01-Apr-08 01-May-08 01-Jun-08 01-Jul-08 01-Aug-08 01-Sep-08 01-Oct-08 01-Nov-08 01-Dec-08 01-Jan-09 01-Feb-09 01-Mar-09 01-Apr-09 01-May-09 01-Jun-09 01-Jul-09 01-Aug-09 01-Sep-09 01-Oct-09 01-Nov-09 01-Dec-09 01-Jan-10 01-Feb-10 01-Mar-10 01-Apr-10 01-May-10 01-Jun-10 01-Jul-10 01-Aug-10 01-Sep-10 01-Oct-10 01-Nov-10 HDFC 1.29 -1.91 -2.31 1.88 -0.83 -0.12 0.78 1.19 1.29 2.15 9.27 0.88 -4.02 -2.20 2.64 0.21 -1.23 0.38 -1.40 -0.05 -0.05 1.04 -0.05 0.49 -0.05 0.54 0.75 1.33 0.21 0.16 -0.31 0.68 0.31 0.62 0.21 BIRLA SUN LIFE 0.73 -1.76 -1.45 0.08 -0.43 -0.56 0.23 0.67 -0.57 2.52 10.95 0.68 -4.70 -2.69 1.72 -0.51 -0.78 0.60 -1.15 0.33 0.80 1.23 -0.11 -0.24 -0.05 0.07 0.31 1.11 -0.45 -0.09 -0.17 0.28 0.24 0.69 0.09 RELIANCE 2.72 0.81 0.15 0.05 -3.09 -0.13 -2.30 -0.61 5.35 2.31 10.78 -1.47 -2.89 -1.61 1.65 0.61 -0.78 -0.20 -0.76 0.28 -0.58 0.77 0.11 0.96 -0.14 0.14 0.16 0.55 -0.13 0.12 -0.44 0.16 0.17 0.29 0.39 PRINCIPAL 0.08 -0.69 -4.16 -0.68 0.13 0.10 0.08 -0.62 0.34 0.25 1.69 0.60 -0.96 -5.00 6.19 0.09 0.69 0.45 -0.38 1.01 -2.45 0.85 3.24 2.30 -7.11 -0.99 -0.80 -0.33 -0.50 0.01 -0.07 -0.43 1.75 1.36 -0.93
Analysis of Rate of Return of Debt Gilt Long Term Fund

12.00 10.00 8.00 6.00 4.00 2.00 0.00 -2.00 -4.00 -6.00 -8.00 -10.00 01/Jul/08 01/Jul/09 01/Feb/08 01/Sep/08 01/Feb/09 01/Sep/09 01/Feb/10 01/Jul/10 01/Dec/08 01/Dec/09 01/Sep/10 01/May/08 01/May/09 01/May/10 01/Aug/08 01/Aug/09 01/Mar/08 01/Mar/09 01/Mar/10 01/Aug/10 01/Nov/08 01/Nov/09 01/Nov/10 01/Dec/10 01/Apr/08 01/Apr/09 01/Apr/10 01/Jun/08 01/Jun/09 01/Oct/08 01/Oct/09 01/Jun/10 01/Jan/08 01/Jan/09 01/Jan/10 01/Oct/10
Percentage Return(%)
HDFC
BIRLA SUN LIFE
RELIENCE
PRINCIPAL
Interpretation:The above graph represents average monthly movement of return for chosen four Mutual funds Debt gilt long term scheme. One can easily infer from the above graph that return series of HDFC, Birla sun life, Reliance scheme went up during 1-Nov-08. after then return series of this three companies went down & up during 1-Feb-09 to 1-April-09.After return series of this three companies went to stable during the year from 1-May-09 to 1-Nov-10.While return series of principal went up during the year 1-March-09 & down during the year 1-Jan-2010 .
Average Return & Standard Deviation Debt Gilt Long Term Scheme of Five Companies.
HDFC Average return Std deviation 0.39 2.04 BIRLA SUN LIFE 0.22 2.25 RELIANCE 0.38 2.36 PRINCIPAL -0.14 2.23
Interpretation:Above table shows the average return and standard deviation of Debt gilt long term scheme of four mutual fund Companies. It is shown in above table that average return of HDFC, Birla Sun Life, Reliance and Principal are 0.39, 0.22, 0.38 and -0.14 respectively. Whereas standard deviation of HDFC, Birla Sun Life, Reliance and Principal are 2.04, 2.25, 2.36 and 2.23 respectively. . It is clear from the above table that HDFC yields highest return whereas is having minimum S.D as compared to other three companies. So if one wants invest money in Debt gilt long term scheme one should go with HDFC and if more than one then Reliance and Birla Sun life could rank second and third respectively.
5.2.4). Debt Regular Saving Fund Scheme:The below table is showing monthly average NAV of three Mutual fund Companies in Debt regular saving fund scheme for 3 years from Jan-2008 to Dec2010.Here, HDFC & Principal Company doesnt provide this scheme. So data are not mention in below table NAV of Debt Regular Saving Fund Scheme
Months 01-Jan-08 01-Feb-08 01-Mar-08 01-Apr-08 01-May-08 01-Jun-08 01-Jul-08 01-Aug-08 01-Sep-08 01-Oct-08 01-Nov-08 01-Dec-08 01-Jan-09 01-Feb-09 01-Mar-09 01-Apr-09 01-May-09 01-Jun-09 01-Jul-09 01-Aug-09 01-Sep-09 01-Oct-09 01-Nov-09 01-Dec-09 01-Jan-10 01-Feb-10 01-Mar-10 01-Apr-10 01-May-10 01-Jun-10 01-Jul-10 01-Aug-10 01-Sep-10 01-Oct-10 01-Nov-10 01-Dec-10 BIRLA SUN LIFE 14.80 14.91 15.01 15.11 15.21 15.31 15.41 15.54 15.65 15.79 15.91 16.02 16.14 16.24 16.33 16.42 16.48 16.54 16.62 16.68 16.74 16.81 16.86 16.91 16.97 17.03 17.08 17.15 17.21 17.28 17.35 17.42 17.50 17.59 17.69 17.78 RELIANCE 11.01 11.05 11.11 11.17 11.22 11.23 11.25 11.31 11.29 11.38 11.36 11.42 11.70 11.68 11.70 11.97 11.93 11.91 12.02 12.03 12.04 12.13 12.23 12.21 12.60 12.63 12.68 12.72 12.74 12.81 12.83 12.82 12.87 12.89 12.86 12.91 LIC 12.55 12.72 12.83 12.91 12.99 13.06 13.05 13.16 13.25 13.33 13.41 13.52 13.64 13.75 13.84 13.92 13.99 14.06 14.13 14.20 14.25 14.32 14.38 14.43 14.49 14.55 14.61 14.68 14.73 14.79 14.86 14.93 15.00 15.07 15.14 15.21
Comparision of Nav of Debt Regular Saving Fund Scheme

20
Monthly Avg. NAV
18 16 14 12 10 8 6 4 2 0 01/Jul/08 01/Jul/09 01/Feb/08 01/Sep/08 01/Feb/09 01/Sep/09 01/Feb/10 01/Jul/10 01/May/08 01/May/09 01/May/10 01/Dec/08 01/Dec/09 01/Sep/10 01/Aug/08 01/Aug/09 01/Mar/08 01/Mar/09 01/Mar/10 01/Aug/10 01/Nov/08 01/Nov/09 01/Nov/10 01/Dec/10 01/Apr/08 01/Apr/09 01/Apr/10 01/Jan/08 01/Jan/09 01/Jun/08 01/Jun/09 01/Jan/10 01/Oct/08 01/Oct/09 01/Jun/10 01/Oct/10
BIRLA SUN LIFE
RELIENCE
LIC
Interpretation:The above graph represents average monthly movement of NAV for chosen three mutual funds Debt regular saving scheme. One can easily infer from the above graph that in spite of difference in NAV value all companies scheme. The all move in more or less same direction with almost same magnitude.
Comparison of Five Mutual fund Companies in Equity & Debt Funds Schemes The below table is showing monthly average rate of return of three Mutual fund companies in Debt regular saving scheme for 3 years from Jan-2008 to Dec2010 Rate of Return of Debt Regular Saving Scheme
Months 01-Jan-08 01-Feb-08 01-Mar-08 01-Apr-08 01-May-08 01-Jun-08 01-Jul-08 01-Aug-08 01-Sep-08 01-Oct-08 01-Nov-08 01-Dec-08 01-Jan-09 01-Feb-09 01-Mar-09 01-Apr-09 01-May-09 01-Jun-09 01-Jul-09 01-Aug-09 01-Sep-09 01-Oct-09 01-Nov-09 01-Dec-09 01-Jan-10 01-Feb-10 01-Mar-10 01-Apr-10 01-May-10 01-Jun-10 01-Jul-10 01-Aug-10 01-Sep-10 01-Oct-10 01-Nov-10 BIRLA SUN LIFE 0.71 0.71 0.61 0.69 0.63 0.71 0.81 0.73 0.89 0.77 0.68 0.73 0.62 0.59 0.56 0.37 0.37 0.45 0.36 0.35 0.40 0.31 0.31 0.36 0.33 0.33 0.41 0.35 0.37 0.43 0.41 0.46 0.50 0.56 0.52 RELIANCE 0.40 0.54 0.49 0.49 0.03 0.24 0.51 -0.19 0.81 -0.15 0.51 2.44 -0.19 0.19 2.33 -0.39 -0.10 0.88 0.13 0.03 0.77 0.79 -0.14 3.21 0.27 0.37 0.27 0.19 0.53 0.15 -0.04 0.36 0.17 -0.19 0.39 LIC 1.35 0.86 0.62 0.66 0.50 -0.04 0.80 0.71 0.58 0.62 0.83 0.92 0.77 0.63 0.64 0.45 0.50 0.54 0.46 0.40 0.46 0.39 0.38 0.42 0.39 0.41 0.47 0.40 0.41 0.47 0.45 0.46 0.45 0.50 0.43
Analysis of Rate of Return of Debt Regular Saving Scheme

3.5 3 2.5 2 1.5 1 0.5 0 -0.5 -1 01/Dec/08 01/May/08 01/May/09 01/Dec/09 01/May/10 01/Apr/08 01/Apr/09 01/Nov/08 01/Nov/09 01/Apr/10 01/Jan/08 01/Jan/09 01/Jan/10 01/Mar/08 01/Mar/09 01/Mar/10 01/Nov/10 01/Feb/08 01/Feb/09 01/Feb/10 01/Jun/08 01/Jun/09 01/Aug/08 01/Aug/09 01/Jun/10 01/Aug/10 01/Jul/08 01/Jul/09 01/Oct/08 01/Oct/09 01/Jul/10 01/Sep/08 01/Sep/09 01/Sep/10 01/Oct/10
Percentage return (%)
BIRLA SUN LIFE
RELIENCE
LIC
Interpretation:The above graph represents average monthly movement of return for chosen three Mutual funds Debt regular saving scheme. One can easily infer from the above graph that return series of Reliance went to more up during the year 1-Dec-08, 1-March-09& 1-Dec-09 & also give negative return. When return series of Birla sun life & LIC went to stable in his position. But not gave negative return.
Average Return & Standard Deviation of Debt Regular Saving Scheme of Five Companies.
BIRLA SUN LIFE Average return Std deviation 0.52 0.17 RELIANCE 0.46 0.76 LIC 0.55 0.23
Interpretation:Above table shows the average return and standard deviation of Debt regular saving scheme of three mutual fund Companies. It is shown in above table that average return of Birla Sun Life, Reliance and LIC are 0.52, 0.46, and 0.55 respectively. Whereas standard deviation of Birla Sun Life, Reliance and LIC are 0.17, 0.76 and 0.23 respectively. It is clear from the above table that LIC yields highest return whereas is having minimum S.D as compared to reliance so if one wants invest money in Debt regular saving scheme one should go with LIC and if more than one then Birla Sun life and Reliance could rank second and third respectively.
5.3) Finding
This study shows that NAV value of HDFC, Birla sun life, Reliance, LIC, & principal Mutual fund companies of Equity & Debt fund schemes from the year 1January-2008 to 31-December-2010. Equity based five schemes that are Top-100, Tax sever (ELSS), Index (Sensex), Equity growth and Equity opportunity taken for all
five companies for the analysis. Also in Debt based four schemes that are Debt Income, Floating rate long term, Gilt long term and regular saving are taken for all five companies. In Equity fund for top-100 scheme HDFC Company gave highest return as compare to other three companies, and its Standard deviation was also high. In Tax sever (ELSS) scheme Reliance company gave highest return as compare to other four companies, but its Standard deviation was low. So it performed very well. In index (Sensex) scheme Birla sun life gave highest return as compare to other three companies, but its Standard deviation was low. So it performed also very well. In Equity growth scheme Reliance Company gave highest return as compare to other four companies, but its Standard deviation was low. So it performed very well. In Equity opportunity scheme HDFC gave highest return as compare to other three companies, and its Standard deviation was also high. In Debt fund for Debt income scheme HDFC Company gave highest return as compare to other three companies, but its Standard deviation was low. So it performed very well. In Floating rate long term scheme HDFC & Birla sun life companies gave highest return as compare to other two companies, but Standard deviation was less of Birla sun Life Company as compare to HDFC Company. So Birla sun life performed very well. In Gilt long term scheme HDFC Company gave highest return as compare to other three companies, but its Standard deviation was low. So it performed very well. In Regular saving scheme LIC Company gave highest return as compare to other two companies, and its Standard deviation was also high.
6). Conclusion
From the above analysis , it is clear that many of the schemes of particular company gives higher return with lowest risk as compared to other company with the same type of scheme. It indicates the good decision making on the part of fund manager which in turn fulfills the main purpose of wealth maximization of the investors for which they are charged. And what makes the fund more reliable for investment as compared to the same fund offered by other companies. One more thing which needs attention is that, it is always better to take calculated risk rather than investing abruptly. And this kind of analysis will provide one with at least basic idea about risk return characteristics of any instrument.
Bibliography
Books:Prasana Chandra, Finance Management, Fifth Edition, Tata Mcgaraw Hils New Delhi. Cooper and Schndler Business Research Methodology Seventh Edition, Tata Mcgaraw Hils New Delhi.
Websites:http://www.investopedia.com/articles/mutualfund/05/MFhistory.asp http://www.birlasunlife.com/birlasunlife/Mutual_Fund/BSLAMC_Nav/fundinfo_NA V.aspx http://www.reliancemutual.com/NAV/NAV.aspx http://www.hdfcfund.com/NAVCorner/ http://www.principalindia.com/navsheet.aspx http://www.licmutual.com/Mf_NAVHist.aspx

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Comparison of Five Mutual fund Companies in Equity & Debt Funds Schemes

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How a mutual fund set up

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1.2). Concept of Mutual Fund:What is Mutual Fund?

Invest / Pool Their money

Profit/Loss from Portfolio Of investments

Mutual Fund Co. (Pool of money)

Investing a Number of Stocks/Bonds

Profit/Loss from individual Of investments

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Working of Mutual Fund

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1.3). Advantages of Mutual Fund:S. No.

Low 4. Transaction Costs

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1.4). Disadvantages of Mutual fund:S. No.

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B)No-loadfund:known as No-load Funds

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2) Tax-exempt Fund | Non-Tax-exempt Fund:-

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1.8). Broad types of Mutual fund:-

Explain above type in brief:-

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1.9). Risks Associated With Mutual Funds:-

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2010Average Asset Under Management: 51,420.713 cores

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3.2). Standard Deviation:

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3.3). Return (Rx):

Rate of return (%) =

67.81-75.65 *100 75.65

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C) Sample Frame: List of schemes of mutual fund.

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4.4). Collection Type: