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CHAPTER 1
CONCEPTUAL OVERVIEW

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CONCEPTUAL OVERVIEW

1. BASICS OF MUTUAL FUND


A mutual fund is a financial intermediary that allows a group of investors to pool
their money together with a predetermined investment objective. The mutual fund
will have a fund manager who is responsible for investing the gathered money into
specific securities (stocks or bonds). When investors invest in a mutual fund, they are
buying units or portions of the mutual fund and thus on investing becomes a unit
holder of the fund.
Mutual funds are considered as one of the best available investments as compare to
others they are very cost efficient and also easy to invest in, thus by pooling money
together in a mutual fund, investors can purchase stocks or bonds with much lower
trading costs than if they tried to do it on their own. But the biggest advantage to
mutual funds is diversification, by minimizing risk & maximizing returns.
Mutual funds are set up to buy many stocks. Beyond that, investors can diversify
even more by purchasing different kinds of stocks which helps to spreading out
investors money across different types of investments and hence, reduces risk
tremendously up to certain extent.
It could take you weeks to buy all these investments, but if you purchased a few
mutual funds you could be done in a few hours because mutual funds automatically
diversify in a predetermined category of investments.

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CHAPTER 2
RESEARCH METHODOLOGY

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2.1) OBJECTIVES:
Objective of this study is to analyze the Past Performance of the various Mutual
Funds Schemes on the Basis of there Historical NAVs and application of statistical
tools on the same. This helps in understanding the performance of mutual fund
schemes in terms of both risk as well as return involved.
2.2 METHODOLOGY:
A Sample of 5Schemes each from 5different types of Funds is being taken.
Types of Funds taken are follows:

Diversified funds
Large cap funds
Mid cap funds
Small cap funds
Sector funds

Analysis has been done by using following Statistical tools:

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


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

in comparison to the market as a whole.


Standard Deviation: It shows the historical volatility.
Annualized Return: It indicate the return on return over the period of times.

2.3 SIGNIFICANCE:

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

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


Get complete overview of Mutual Fund industries in India.
Able to know the past performance of various Mutual Funds Schemes.

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Investors are able to know the investment pattern and market trend of
investing in various sectors.

2.4 LIMITATIONS:

Samples sizes is limited factor, only last fives years of Data has been taken.
Past performance may not guarantee the future return.
Micro level data have been taken in analysis; Macro level data may affect the
returns.

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CHAPTER 3
THEORETICAL BACKGROUND

3.1 Mutual Fund:


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A Mutual Fund is kinds of trust that pools the savings of a number of investors,
investors who share a common financial goal. The money thus collected is then
invested in capital market instruments such as shares, debentures and other
securities. The income earned through these investments and the capital appreciation
realized is shared by its unit holders in proportion to the number of units owned by
them. Thus a Mutual Fund is the most suitable investment for the common man as it
offers an opportunity to invest in a diversified, professionally managed basket of
securities at a relatively low cost.

3.1.1

Advantages of Mutual Fund:

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


professionally managed by well qualified professional. Investors purchase funds
because they do not have the time or the expertise to manage their own portfolio.

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


stocks or bonds, the investors risk is spread out and minimized up to certain extent.
The idea behind diversification is to invest in a large number of assets so that a loss
in any particular investment is minimized by gains in others.

c) Economies of Scale - Mutual fund buy and sell large amounts of securities at a
time, thus help to reducing transaction costs, and help to bring down the average cost
of the unit for their investors.

d)Liquidity - Just like an individual stock, mutual fund also allows investors to
liquidate their holdings as and when they want.

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e) Simplicity - Investments in mutual fund is considered to be easy, compare to other
available instruments in the market, and the minimum investment is small. Most
AMC also have automatic purchase plans whereby as little as Rs. 2000, where SIP
start with just Rs.50 per month basis.

3.1.2 Disadvantages of Mutual Fund:


a) Professional Management- Some funds dont perform according to the market,
as their management is not dynamic enough to explore the available opportunity in
the market, thus investor lose their money.

b) Costs The biggest source of AMC income is generally from the entry & exit
load which they charge from investors, at the time of purchase. The mutual fund
industries are thus charging extra cost under layers of jargon.

c) Dilution - Because funds have small holdings across different companies, high
returns from a few investments often don't make much difference on the overall
return. Dilution is also the result of a successful fund getting too big. When money
pours into funds that have had strong success, the manager often has trouble finding
a good investment for all the new money.

d) Taxes - when making decisions about your money, fund managers don't consider
your personal tax situation. For example, when a fund manager sells a security, a
capital-gain tax is triggered, which affects how profitable the individual is from the
sale. It might have been more advantageous for the individual to defer the capital
gains liability

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3.2 History of Mutual Fund in India:
The mutual fund industry in India started in 1963 with the formation of Unit Trust of
India, at the initiative of the Government of India and Reserve Bank of India. The
history of mutual funds in India can be broadly divided into four distinct phases:

First Phase-(1964-87):

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set
up by the Reserve Bank of India and functioned under the Regulatory and
administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from
the RBI and the Industrial Development Bank of India (IDBI) took over the
regulatory and administrative control in place of RBI. The first scheme launched by
UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of assets
under managements
Second Phase 1987-93(Entry of Public sector funds):
1987 marked the entry of non- UTI, public sector mutual funds set up by public
sector banks and Life Insurance Corporation of India (LIC) and General Insurance
Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund
established in June 1987 followed by Can bank Mutual Fund (Dec 87), Punjab
National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of
India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual
fund in June 1989 while GIC had set up its mutual fund in December 1990.
At the end of 1993, the mutual fund industry had assets under management of Rs.47,
004 crores.

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Third Phase- 1993-2003(Entry of Private sector funds):
With the entry of private sector funds in 1993, a new era started in the Indian mutual
fund industry, giving the Indian investors a wider choice of fund families. Also, 1993
was the year in which the first Mutual Fund Regulations came into being, under
which all mutual funds, except UTI were to be registered and governed. The
erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first
private sector mutual fund registered in July 1993.
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more
comprehensive and revised Mutual Fund Regulations in 1996. The industry now
functions under the SEBI (Mutual Fund) Regulations 1996.
The number of mutual fund houses went on increasing, with many foreign mutual
funds setting up funds in India and also the industry has witnessed several mergers
and acquisitions. As at the end of January 2003, there were 33 mutual funds with
total assets of Rs. 1, 21,805 crores. The Unit Trust of India with Rs.44, 541 crores of
assets under management was way ahead of other mutual funds.

Fourth Phase since February 2003:


In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was
bifurcated into two separate entities. One is the Specified Undertaking of the Unit
Trust of India with assets under management of Rs.29,835 crores as at the end of
January 2003, representing broadly, the assets of US 64 scheme, assured return and
certain other schemes. The Specified Undertaking of Unit Trust of India, functioning
under an administrator and under the rules framed by Government of India and does
not come under the purview of the Mutual Fund Regulation
The second is the UTI Mutual Fund, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund Regulations. With the
bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000
crores of assets under management and with the setting up of a UTI Mutual Fund,
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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.

A graph indicates the growth of assets over the years.

3.3 Types of Mutual Funds Schemes:


3.3.1 ON THE BASIS OF STRUCTURE:
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a) Open - Ended Schemes:
An open-end fund is one that is available for subscription throughout the year.
These do not have a fixed maturity. Investors can conveniently buy and sell units
at Net Asset Value ("NAV") related prices. The key feature of open-end schemes
is liquidity, where you can buy and sell the mutual fund unit at any time.
b) Close - Ended Schemes:
These schemes have a pre-specified maturity period. One can invest directly in
the scheme at the time of the initial issue. Depending on the structure of the
scheme there are two exit options available to an investor after the initial offer
period closes. First, the Investors can transact (buy or sell) the units of the
scheme on the stock exchanges where they are listed. Second, some close-ended
schemes provide an additional option of selling the units directly to the Mutual
Fund through periodic repurchase at the schemes NAV. SEBI Regulations ensure
that at least one of the two exit routes is provided to the investor.
c) Interval Schemes:
Interval Schemes are that scheme, which combines the features of open-ended
and close-ended schemes. The units may be traded on the stock exchange or may
be open for sale or redemption during pre-determined intervals at NAV related
prices.

3.3.2 ON THE BASIS OF NATURE:


a) Equity fund:
These funds invest a maximum part of their Principal amount into equities
holdings. The structure of the fund may vary different for different schemes
and the fund managers outlook on different stocks. Equity investments are
meant for a longer term, thus Equity funds rank high on the risk-return matrix.
b) Debt funds:
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The objective of these Funds is to invest in debt papers. Government
authorities, private companies, banks and financial institutions are some of the
major issuers of debt papers. By investing in debt instruments, these funds
ensure low risk and provide stable income to the investors.

c) Balance fund:
They are a mix of both equity and debt funds. They invest in both equities and
fixed income securities, which are in line with pre-defined investment objective
of the scheme. These schemes aim to provide investors with the best of both the
Funds.

Equity part provides growth and the debt part provides stability in

returns.

3.3.3 ON THE BASIS OF INVESTMENT OBJECTIVE:

a) Growth Schemes:
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These Schemes are also known as equity schemes. The aim of these schemes
is to provide capital appreciation over medium to long term. These schemes
normally invest a major part of their fund in equities and are willing to bear
short-term decline in value for possible future appreciation
b) Income Schemes:
These are also known as debt schemes. The aim of these schemes is to
provide regular and steady income to investors. These schemes generally
invest in fixed income securities such as bonds and corporate debentures.
Capital appreciation in such schemes may be limited

c) Money Market Schemes:


These Schemes aim to provide easy liquidity, preservation of capital and
moderate income. These schemes generally invest in safer, short-term
instruments, such as treasury bills, certificates of deposit, commercial paper
and inter-bank call money.

3.3.4 Types of Funds taken for analysis:


a) Large Cap Funds:
These are those types of Funds which invest their money in large Blue chip
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Companies, having with a market capitalization of more than Rs 1000 crores.
Investing in large cap is a low risk-return preposition because such funds are
widely research and information available.
One of the advantage of large cap funds are that they are less volatile than mid
cap and small cap funds because investors are investing in this types of fund
for a long term prospective and help to keep these fund away from the
volatility of the markets.
Top Performer under this category:
1) HDFC Top 200: Its Compounded Annualized Returns of last 5
years is 24.5%.
2) Reliance Large Cap Fund: Its Compounded Annualized Returns
of last 5 years is 22.6%.
3) Franklin India Blue Chip: Its Compounded Annualized Returns
of last 5 years is 20.7%.
4) Kotak 30: Its Compounded Annualized Returns of last 5 years is
19%.
5) DSPML Top 100 Equity: Its Returns of last year is 18.4%.

b) Mid Cap Funds:


This types of Funds invest their money in mid sizes companies. Companies
having market Capitalization between the Rs 500crores to Rs 1000 crores are
come under the mid cap companies. Mid Cap Funds are very volatile and
tends to fall if the market is fall in bad times. But this gives good return in
short term.
Top Performer under this category:
1) IDFC Premier equity fund: Its Compounded Annualized Returns
of last 5 years is 29.2%.
2)Sundaram select mind cap fund (G): Its Compounded Annualized
Returns of last 5 years is 24.8%.
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3) Reliance Growth: Its Compounded Annualized Returns of last 5
years is 23%.
4) Birla Sun life mid cap fund: Its Compounded Annualized Returns
of last 5 years is 21.9%.
5) L&T mid cap fund: Its Compounded Annualized Returns of last 5
years is 17%.

c) Small Cap Funds:


These types of Funds are investing their money in Small size companies.
Companies having market capitalization up to Rs 500 crores come under the
categories of Small Cap companies. Small Cap Funds are more volatile than
Mid Cap & Large Cap Funds. Its Risk-Return Matrix are very high.
Top performer under this category:
1) L&T Small cap fund:
2) JP Morgan India smaller companies fund(G)
3) HSBC Small cap fund
4) Sundaram select small cap fund (G):

d) Sector Funds:
These types of Funds are investing their money in particular sector of the
economy. Such as infrastructure, Banking, Retail, FMCG, ect. These Funds
are more volatile than Diversified funds having stocks of many sectors. These
Funds are high risk -reward category. These types of Funds are only for the
short term investors, who are able to take high risk ability.
Top Performer funds under this category:
1) Reliance Diversified Power sector fund (G): Its Compounded
Annualized Returns of last 5 years is 27.8%.
2) Reliance Banking fund (G): Its Compounded Annualized Returns
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of last 5 years is 25.7%.
3) Reliance Pharma (G): Its Compounded Annualized Returns of
last 5 years is 25.4%.
4) ICICI Prudential infrastructure fund (G): Its Compounded
Annualized Returns of last 5 years is 20.5%.
5) UTI Banking sector fund (G): Its Compounded Annualized
Returns of last 5 years is 20.4%.

e) Diversified funds:
These are a kind of funds which invest there most of there money in different
sectors like FMCG, Infrastructure, Pharma, ect. This helps to Diversified there
Risk into various sectors. If one sector is going down then other sector may
compensate the loss. These types of funds give consistent return without much
volatility in long term.
Top Performer Funds under this category:
1) IDFC Premium Equity fund-planA (G): Its Compounded
Annualized Returns of last 5 years is 26.9%.
2) Reliance regular saving fund-Equity growth: Its Compounded
Annualized Returns of last 5 years is 26% return.
3) HDFC Top 200- Growth: Its Compounded Annualized Returns of
last 5 years is 21.5%.
4) HDFC Equity fund (G): Its Compounded Annualized Returns of
last 5 years is 21.3%.
5) Birlasunlife frontline Equity fund: Its Compounded Annualized
Returns of last 5 years is 21.2%.

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CHAPTER 2
THEORETICAL BACKGROUND

4.1 RELIANCE MUTUAL FUND:


Reliance Mutual Fund is Indias leading Mutual Fund with Quarter Average Assets
under management (AAUM) of Rs 102066Crores.
Reliance Mutual Fund, a part of the Reliance - Anil Dhirubhai Ambani Group, is one
of the fastest growing mutual funds in the country. RMF offers investors a wellrounded portfolio of products to meet varying investor requirements and has
presence in 159 cities across the country. Reliance Mutual Fund constantly endeavors
to launch innovative products and customer service initiatives to increase value to
investors. "Reliance Mutual Fund schemes are managed by Reliance Capital Asset
Management Limited., a subsidiary of Reliance Capital Limited, which holds
93.37% of the paid-up capital of RCAM.

The schemes that I have taken for analysis from Reliance Mutual Fund are:
4.1.1 RELIANCE BANKING FUND (G) [under Sector Fund]: The primary
investment objective of the Scheme is to seek to generate continuous returns by
actively investing in equity and equity related or fixed income securities of
companies in the Banking Sector.
Fund overview:
Fund TypesInvestment PlanAssets sizes[Type text]

Open Ended
Growth
Rs1466 Crores
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Launches dateBenchmarkFund Manager-

May21, 2003
Bank Nifty
Mr. Sunil Singhania

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


Fund]: The primary investment objective of the Scheme is to generate consistent
returns by investing in equity / equity related or fixed income securities of media
& entertainment and other associated companies.
Fund overview:
Fund TypesInvestment PlainAssets sizesLaunch dateBenchmarkFund Manager-

Open Ended
Growth
Rs112.05 crores
Sep 27, 2007
NA
Mr. Sailesh Raj Bhan

4.1.3 RELIANCE VISION (G) [under large cap fund]: Seeks to provide long term
capital appreciation by primarily investing in growth oriented stocks.
Fund overview:
Fund TypesInvestment PlanAssets SizesLaunch dateBench markFund Manager-

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Open Ended
Growth
Rs 61crores
Aug8, 2007
BSE 100
Mr. Ashwani Kumar

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4.2 UTI MUTUAL FUND:


UTI Mutual Fund was started in 14, January 2003 by UTI Trustee Co, Pvt. Ltd. for
managing the schemes of UTI Mutual Fund. UTIAMC provides professionally
managed back office support for all business services of UTI Mutual Fund in
accordance with the provisions of the Investment Management Agreement, the Trust
Deed, the SEBI Regulations and the objectives of the schemes.
Since February 3, 2004, UTIAMC is also a registered portfolio manager under the
SEBI for undertaking portfolio management services. UTIAMC also acts as the
manager and marketer to offshore funds through its 100 % subsidiary, UTI
International Limited, registered in Guernsey, Channel Islands.
UTIAMC presently manages a capital of over Rs. 65, 38,724.42 lakhs as on 31st
December 2010. UTI Mutual Fund has a track record of managing a variety of
schemes catering to the needs of every class of citizens. It has a nationwide network
consisting 148 UTI Financial Centers (UFCs) and UTI International offices in
London, Dubai and Bahrain.
UTIAMC has a well-qualified, professional fund management team, which has been
fully empowered to manage funds with greater efficiency and accountability in the
sole interest of the unit holders.
UTIMF has consistently reset and upgraded transparency standards. All the branches,
UFCs and registrar offices are connected on a robust IT network to ensure costeffective quick and efficient service.
The schemes that I have taken for analysis from UTI Mutual Fund are:
4.2.1 UTI INFRASTRUCTURE FUND(G) [under Sector Fund] : Investment
Objective is capital appreciation by investing in the companies engaged in the
sectors like Metals, Real Estate, Oil ; Gas, Power, Chemicals, Engineering etc.
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Fund overview:
Fund TypesInvestment PlanAssets SizesLaunch dateBench markFund Manager-

Open Ended
Growth
Rs 1581crores
Apr7, 2004
BSE 100
Mr. Sanjay Dongre

4.2.2 UTI LARGE EQUITY FUND (G) [under large cap Fund]: The Scheme is
designed specifically for large corporate investors and as well as high net worthy
investors who would like to invest large amount in exclusive Scheme which allows
entry and exit at NAV.
Fund overview:
Fund TypesInvestment PlanAssets SizesLaunch dateBench markFund Manager-

Open Ended
Growth
Rs 2170crores
may18, 1992
BSE sensitive index
Mr. Anoop Bhaskar

4.2.3 UTI MID CAP FUND [ under Mid cap fund]: Its aims to provide to investors
growth of capital over a period of time by investing in mid cap stock ,as well as to
make periodical distribution of income from investment in stocks of respective
sectors of the Indian economy.
Fund overview:
Fund TypesInvestment PlanAssets SizesLaunch date[Type text]

Open Ended
Growth
Rs 375crores
Apr 07, 2004
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Bench markFund Manager-

CNX mid cap


Mr. Anoop Bhaskar

4.3 SBI MUTUAL FUND:


SBI Mutual Fund is Indias largest bank sponsored mutual fund and has a track
record in judicious investments and consistent wealth creation. The fund traces its
lineage to SBI - Indias largest banking enterprise. The institution has grown
immensely since its inception and today it is India's largest bank, patronized by over
80% of the top corporate houses of the country.
SBI Mutual Fund is a joint venture between the State Bank of India and Society
General Asset Management, one of the worlds leading fund management
companies that manages over US$ 500 Billion worldwide.
In twenty years of operation, the fund has launched 38 schemes and successfully
redeemed fifteen of them. In the process it has rewarded it's investors handsomely
with consistent returns.
A total of over 5.8 million investors have reposed their faith in the wealth generation
expertise of the Mutual Fund.
Today, the fund manages over Rs. 42,100 crores of assets and has a diverse profile of
investors actively parking their investments across 38 active schemes.
The fund serves this vast family of investors by reaching out to them through
network of over 130 points of acceptance, 29 investor service centers, 59 investor
service desks and 6 Investor Service Points.
SBI Mutual is the first bank-sponsored fund to launch an offshore fund Resurgent
India Opportunities Fund.
The schemes that I have taken for analysis from SBI Mutual Fund are:
4.3.1SBI MAGNUM SECTOR UMBRELLA-PHARMA (G) [under sector Fund]:
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It provides the investors maximum growth opportunity through equity investments
in stocks

of growth oriented sector called Pharma in long run.

Fund overview:
Fund TypesInvestment PlanAssets SizesLaunch dateBench markFund Manager-

Open Ended
Growth
Rs 39.69 crores
JUL 14, 1999
BSE health care
Mr. Sohini Andani

4.3.2 SBI MAGNAM EQUITY FUND (G)[ under large cap Fund]: To provide
investors long term capital appreciation along with the liquidity of an open-ended
scheme. The scheme will invest in a diversified portfolio of equities of high growth
companies.
Fund overview:
Fund TypesInvestment PlanAssets SizesLaunch dateBench markFund Manager-

Open Ended
Growth
Rs 469 crores
jan 1, 1991
BSE 100
Mr. R Srinivasan

4.3.3 SBI MAGNUM MID CAP FUND [under mid cap Fund]: To provide
investors with opportunities for long term growth in capital along with the liquidity
of an open ended scheme by investing predominantly in a well diversified basket of
equity stocks of companies and in debt and money market instruments.
Fund overview:
Fund TypesInvestment PlanAssets Sizes[Type text]

Open Ended
Growth
Rs 303crores
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Launch dateBench markFund Manager-

Mar 17.2005
CNX MID CAP
Mr. Sohini Andani

4.4 FRANKLIN TEMPLETION MUTUAL FUND:


Franklin Templeton Investments is one of the largest financial services groups in the
world based at San Mateo, California USA. The group has US$ 642.3 billion in
assets under management globally.
Franklin Templeton has offices in 33 locations across India and manages average
AUM of Rs. 42142.21 crores for over 22 lakhs investors (as on September 30, 2010).

The schemes that I have taken for analysis from FRANKLIN TEMPLETION Mutual
Fund are:
4.4.1 FRANKLIN TEMPLETION FMCG FUND [under Sector Fund]: The
scheme aims to achieve long term capital appreciation through exclusively investing
in shares of Fast Moving Consumer Goods Companies.
Fund overview:
Fund TypesInvestment PlanAssets SizesLaunch dateBench markFund Manager-

Open Ended
Growth
Rs 51crores
Mar 31.1999
NA
Anil Prabhudas

4.5 JM FINANCIAL MUTUAL FUND:

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It is one of India 's first private sector mutual funds-an integral part of the first wave
that commenced operations in 1993-94.It is a part of JM Financial Group , which has
a rich heritage, built over three decade. Group's origins can be traced back to the
1950s when the Kampani family began to get involved in India's then capital
markets. JM Financial & Investment Consultancy Services was founded on
September 15, 1973.
JM Financial Asset Management Private Limited started operations in December
1994 with a simultaneous launch of three funds-JM Liquid Fund (now JM Income
Fund), JM Equity Fund and JM Balanced Fund. Today, JM Financial Mutual Fund
offers a bouquet of funds that caters to the diverse needs of both its institutional and
individual investors.
Its mission is to manage risk effectively while generating top quartile returns across
all product categories. We believe that to cultivate investor loyalty, we must provide
a safe haven for their investments. We are focussed on helping our investors realize
their investment goals through prudent advice, judicious fund management, accurate
research, and strong systems of managing risk scientifically.
The schemes that I have taken for analysis from JM FINANCIAL Mutual Fund are:
4.5.1 JM LARGE CAP FUND (G) [under large cap Fund]: The Scheme aims to
provide long term capital appreciation from a portfolio that is invested
predominantly in equity and equity related instruments in the Healthcare sector.
Fund overview:
Fund TypesInvestment PlanAssets SizesLaunch dateBench markFund Manager-

Open Ended
Growth
Rs5.1 crores
Jun 9.2004
BSE Health care sector
Mr. Sanjay Chhabaria

4.5.2 JM MID CAP FUND [under mid cap Fund]: The investment objective of the
Scheme is to provide capital appreciation by primarily investing in mid cap fund.
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Fund overview:
Fund TypesInvestment PlanAssets SizesLaunch dateBench markFund Manager-

Open Ended
Growth
Rs9.7 crores
Jun 9.2004
BSE 500
Mr. Sanjay Chhabaria

4.5.3 JM SMALL & MID CAP FUND (G)[under small cap Fund]: The investment
objective of the Scheme is to provide capital appreciation by primarily investing in
small cap and mid-cap stocks.
Fund overview:
Fund TypesInvestment PlanAssets SizesLaunch dateBench markFund Manager-

Open Ended
Growth
Rs 58 crores
Mar 9, 2007
CNX MID CAP
Mr. Sanjay Chhabaria

4.6BIRLA SUNLIFE MUTUAL FUND:


Birla Sun Life Asset Management Company Ltd. (BSLAMC) is a joint venture
between the Aditya Birla Group and the Sun Life Financial Services Inc. of Canada.
The joint venture brings together the Aditya Birla Group's experience in the Indian
market and Sun Life's global experience.
Birla Sunlife Mutual Fund is established in 1994 .It offer a range of investment
options, including diversified and sector specific equity schemes, fund of fund
schemes, hybrid and monthly income funds, a wide range of debt and treasury
products and offshore funds. BSLAMC is one of the largest team of research
analysts in the industry, dedicated to tracking down the best companies to invest in.
BSLAMC strives to provide transparent, ethical and research-based investments and
wealth management services.

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The schemes that I have taken for analysis from BIRLA SUNLIFE

Mutual Fund

are:
4.6.1BIRLASUNLIFE ADVANTAGE FUND [under Large cap Fund]: To achieve
long-term growth of capital through investments mainly in equity and equity related
instruments.
Fund overview:
Fund TypesInvestment PlanAssets SizesLaunch dateBench markFund Manager-

Open Ended
Growth
Rs 414 crores
Feb 24, 1995
BSE Sensitive index
Mr. Ajay Argal

4.6.2BIRLASUNLIFE SMALL & MID CAP FUND [under small cap Fund]:
It objective is to generate consistent long-term capital appreciation by investing
predominantly in equity and equity related securities of companies considered to be
small and mid cap. It may also invest a certain portion of its corpus in fixed income
securities including money market instruments, in order to meet liquidity
requirements from time to time.
Fund overview
Fund TypesInvestment PlanAssets SizesLaunch dateBench markFund Manager-

Open Ended
Growth
Rs 189 crores
Apr 9, 2007
CNX MID CAP
Mr. Ankit Sancheti

4.7 KOTAK MAHINDRA MUTUAL FUND:

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Kotak Mahindra is one of India's leading financial institutions, offering complete
financial solutions that encompass every sphere of life. From commercial banking, to
stock broking, to mutual funds, to life insurance, to investment banking, the group
caters to the financial needs of individuals and corporate.
The group has a net worth of Rs.7,911 crore and employs around 20,000 employees
across its various businesses, servicing around 7 million customer accounts through a
distribution network of 1,716 branches, franchisees and satellite offices across more
than 470 cities and towns in India and offices in New York, California, San
Francisco, London, Dubai, Mauritius and Singapore.
Kotak Mahindra Asset Management Company Limited (KMAMC), a wholly owned
subsidiary of KMBL, is the Asset Manager for Kota Mahindra Mutual Fund
(KMMF). KMAMC started operations in December 1998 and has over 10 Lac
investors in various schemes. KMMF offers schemes catering to investors with
varying risk - return profiles and was the first fund house in the country to launch a
dedicated gilt scheme investing only in government securities.

The schemes that I have taken for analysis from KOTAK MAHINDRA

Mutual

Fund are:
4.7.1 KOTAK MAHINDRA MID CAP FUND [under mid cap Fund]: The
investment objective of Kotak Midcap is to generate capital appreciation from a
diversified portfolio of equity & equity related securities. The scheme predominantly
invests in companies in the mid market capitalization segment across sectors. The
scheme is well positioned to provide the benefit of potential growth offered by mid
cap stocks which are likely to become tomorrows large caps.

Fund overview:
Fund TypesInvestment Plan[Type text]

Open Ended
Growth
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Assets SizesLaunch dateBench markFund Manager-

Rs 254 crores
jan 28, 2005
CNX Nifty junior
Mr. Pankaj Tibrewal

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


capital appreciation from a portfolio created by investing predominantly in openended diversified equity schemes of Mutual Funds registered with SEBI.
Fund overview:
Fund TypesInvestment PlanAssets SizesLaunch dateBench markFund Manager-

Open Ended
Growth
Rs 49 crores
Aug 09, 2004
NA
Mr. Sajit Pisharodi

4.8 SUNDARAM BNB PARIBAS MUTUAL FUND:


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

is

the

heart

of

our

business

belief.

Being in the financial sector for a long time has given us a great understanding of the
Indian economy and that guides us while picking the companies for its Funds. Once
it unearth a potential opportunity, its Financial Experts spend countless time to
research the companies, to see what will deliver the best returns for your money. Its
financial experts are fine tuned to the larger global picture and all its complexities as
well as the intricacies of the Indian market. We track global economic trends and
market behaviour to better understand the domestic markets. We are constantly on
the trail of promising opportunities and once identified, a new theme is thoroughly
researched and tested on various platforms before being offered to the investing
public.
The schemes that I have taken for analysis from

SUNDARAM BNB PARIBAS

Mutual Fund are:


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4.8.1 SUNDARAM SELECT MID CAP FUND (G) [under mid cap fund]:
Sundaram Select Mid Cap Fund is an open ended equity scheme that seeks capital
appreciation by investing in diversified stocks that are generally termed as mid -caps.
Fund overview:
Fund TypesInvestment PlanAssets SizesLaunch dateBench markFund Manager-

Open Ended
Growth
Rs 2294 crores
Jul 19, 2002
BSE Mid cap index
Mr. Satish Ramanathan

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


fund]: The primary investment objective of the scheme is to generate consistent longterm returns by investing predominantly in equity/equity related instruments of
companies that can be termed as small cap.
Fund objective:
Fund TypesInvestment PlanAssets SizesLaunch dateBench markFund Manager-

Open Ended
Growth
Rs 364 crores
Jan 24, 2006
BSE Small cap index
Mr. Satish Ramanathan

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


fund]:
It seeks to achieve capital appreciation by investing in a well diversified basket of
equities and equity-related instruments. Income generation would be the secondary
consideration.
Fund Overview:
Fund TypesInvestment PlanAssets Sizes[Type text]

Open Ended
Growth
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Launch dateBench markFund Manager-

4.9 L & T MUTUAL FUND:


L&T Mutual Fund is one of the premier mutual funds in India that serves the
investment needs of investors through a suite of acclaimed mutual fund schemes.
With world class investment management practices and an equally competent fund
management team, L&T Mutual Fund helps its investors reach their financial goals.
Whether you are an individual investor, institution, or finance professional, you can
gain from the products and expertise that we offer.
L&T Mutual Fund is backed by one of the most trusted and valued brands, L&T
Finance incorporated as Non Banking Finance Company in November 1994, has
earned the trust of thousands of investors by adapting well to the changing marketing
dynamics and emerging as a profitable venture despite the turbulences in the
Financial market over the past few years.

The schemes that I have taken for analysis from L & T Mutual Fund are:
4.9.1 L & T SMALL CAP FUND [under small cap fund]: The scheme seeks to
generate long term capital appreciation by investing predominantly in equity and
equity related instruments of companies with small cap.
Fund overview:
Fund TypesInvestment PlanAssets SizesLaunch dateBench mark[Type text]

Open Ended
Growth
Rs 20 crores
Dec 20, 2007
BSE Small cap index
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Fund Manager-

Mr. Anant Deep Katre

4.10 TATA MUTUAL FUND:


Tata Mutual Fund has earned the trust of lakhs of investors with its consistent
performance and world-class service.
It manages around Rs20,854.00 crores (average AUM for the quarter of OctoberDecember 2010) worth of assets across its varied offerings. Tata Mutual Fund offers
an investment option for everyone, whether you are a businessman or salaried
professional, a retired person or housewife, an aggressive investor or a conservative
capital builder.
The Tata Asset Management philosophy is centered on seeking consistent, long-term
results. Tata Asset Management aims at overall excellence, within the framework of
transparent and rigorous risk controls.
Tata Mutual Fund offers investors a broad range of managed investment products in
various asset classes and risk parameters, with operational flexibility to suit their
varied investment needs.
It offer a wide range of services to assist investors have a fulfilling and rewarding
financial planning experience with us. It have designed our services keeping in mind
the needs of our investors, giving them a smooth and hassle-free financial planning
process.
The schemes that I have taken for analysis from TATA Mutual Fund are:
1.10.1 TATA DIVIDENT YIELD FUND (G) [under Diversified fund]: To Provide
income distribution and / or medium to long term capital gains by investing
predominantly in high dividend yield stocks.
Fund overview:
Fund Types[Type text]

Open Ended
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Investment PlanAssets SizesLaunch dateBench markFund Manager-

Growth
Rs 177 crores
Oct 27, 2004
BSE Sensitive index
Mr. Mahendra Jajoo / Sachin Relekar

4.11 HDFC MUTUAL FUND:


HDFC Asset Management Company Ltd (AMC) was incorporated under the
Companies Act, 1956, on December 10, 1999, and was approved to act as an Asset
Management Company for the HDFC Mutual Fund by SEBI vide its letter dated July
3, 2000.
In terms of the Investment Management Agreement, the Trustee has appointed the
HDFC Asset Management Company Limited to manage the Mutual Fund. The paid
up capital of the AMC is Rs. 25.161 crore. The AMC is managing 28 open-ended
schemes of the Mutual Fund some are HDFC Growth Fund, HDFC Equity Fund,
HDFC Top 200 Fund, HDFC Capital Builder Fund, HDFC Core & Satellite Fund,
HDFC Premier Multi-Cap Fund, and HDFC Index Fund.
The AMC is also managing 7 closed ended Schemes some are HDFC Long Term
Equity Fund, HDFC Infrastructure Fund, and HDFC Fixed Maturity Plans - Series
XI, HDFC Fixed Maturity Plans - Series XII.The AMC is also providing portfolio
management / advisory services.
The schemes that I have taken for analysis from HDFC MUTUAL FUND are:
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4.11.1 HDFC TOP200 FUND [under Diversified fund]: It objective is to generate
long term capital appreciation by investing in a portfolio of equities and equity
linked instruments drawn from the BSE 200 Index.
Fund Overview:
Fund TypesInvestment PlanAssets SizesLaunch dateBench markFund Manager-

Open Ended
Growth
Rs. 9425 crores
Oct 27, 2004
BSE 200 index
Mr. Prashant Jain

4.12 RELIGARE MUTUAL FUND:


Religare Mutual Fund is managed by Religare Asset Management Company Limited,
a subsidiary of Religare Securities Limited (RSL). The AMC was incorporated on
May 20, 2005 and the mutual fund was set up on July 24, 2006.
It manages Assets around Rs104 billion dollars. Religare Asset Management aims to
serve investment needs of individual investors, corporate and institutions through
mutual funds and sub-advised portfolios. Its product portfolio is managed by
individually focused management teams to create optimum balance and results. They
are committed to providing financial care and top class service. They subscribe to
sustainable business models and process that factor in the dynamism of the business
in fast changing market scenarios.
The schemes that I have taken for analysis from

Religare Mutual Fund are:

4.12.1 RELIGARE SMALL &MID CAP FUND [under small cap fund]:
The Scheme seeks to provide long term capital appreciation by investing in a
portfolio that is predominantly constituted of equity and equity related
instruments of mid and small cap companies.
Fund overview:
Fund TypesOpen Ended
Investment PlanGrowth
Assets SizesRs 22.4 crores
Launch dateJan 7, 2008
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Bench markFund Manager-

NA
Mr. Vinay Paharia

CHAPTER 5
DATA ANALYSIS

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5.1 Diversified Funds:


1) CAGR

Yr/Schemes

Tata Dividend
yield

Kotak

Reliance

Sundaram

Equity

Diversified

Balance

FOF

Power

fund

HDFC
TOP200

Last 1 yrs

103.78

86.03

96

71.52

102.25

Last3 yrs

20.3

13.08

32.07

12.61

20.7

Last 5yrs

19.14

21.11

40.16

16.47

29.14

INTERPRETATIONS:
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a) In last 1yr HDFC, Tata and Reliance gave maximum return of 102.2%, 103.7%
and 96% respectively, Followed by Kotak and Sundaram by 86.03% and 71.5%
respectively.
b) In last 3 & 5 yrs, Reliance gave maximum return against its competitors.

2) Standard Deviation
Yrs/Schemes Tata

Kotak

Reliance

Sundaram

HDFC

Dividend

Equity

Diversified

Balance fund

TOP200

Last 1 yrs

yield
0.071419205

FOF
power
0.09292427 0.101266115

0.068953248

0.0932788

Last 3 yrs

0.099664831

0.09966483 0.111054683

0.082246954

0.0968572

Last 5yrs

0.087110732

0.11201375 0.09839249

0.085491183

0.0841035

INTERPRETATIONS:
a) As far as the Standard Deviation in last 1 yrs is concern, it is high in Reliance,
which is 0.1 and low in Sundaram (0.068).
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b) In last 3years, again Reliance has high Standard Deviation about 0.011 followed
by Kotak and Tata by0.09 both.
c) But in last5 yrs, Kotak is highly volatile followed by Reliance and Tata.

3) Beta
Yrs/Schemes Tata

Kotak

Reliance

Sundaram

Equity

Diversified

Balance fund TOP200

Power
0.970784506

0.839178531

0.889744

Last 1 yrs
Last 3 yrs

0.173402004 0.1508907 0.100171515

0.094652253

0.127550

Last 5yrs

-0.01188823

0.120147547

0.167198

Dividend

yield
FOF
0.685522556 0.91563 3

0.1985720 0.970784506

HDFC

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

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b) In last 3 yrs all the funds are less volatile with Nifty, but in last 5 yrs Reliance has
high Beta of 0.97, so it has high volatility.
c) Tata dividend has low Beta in all the year.

4) Sharpe Ratio
Yrs/Schemes Tata

Kotak

Reliance

Sundaram

HDFC TOP200

Dividend

Equity

Diversified

Balance

Last 1 yrs

yield
2.82288

FOF
1.92184

power
1.941195962

fund
1.78291329 2.189613153

Last3 yrs

0.54053

0.36523

0.75575441

0.34489246 0.551588391

Last 5yrs

0.46532

0.68236

0.991355024

0.50778455 0.82590418

INTERPRETATIONS:
a) As far as last 1 yr is concern, Tata has highest Sharpe ratio (2.8), followed by
HDFC (2.1), Reliance (1.94), Kotak (1.92) and Sundaram (1.7) .
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b) In last 3 yrs & 5 yrs, Reliance has highest Sharpe Ratio against its competitors.
c) Tata has low Beta in all the years.

5.2 Sector Fund


1) CAGR (in %)
Yr/Schemes Reliance

Franklin

Banking(G) FMCG(G)

UTI

SBI

infrastructure(G) magnum

Reliance
Media&Ent(G)

Last1 yrs

120.55

68.57

66.77

Pharma(G)
112.96
18.94

Last3 yrs

30.21

17.52

10.89

3.61

2.07

Last 5yrs

25.37

21.73

23.23

12.31

88.77

INTERPRETATIONS:
a) In last1 years, Reliance Banking and SBI gave highest return of 120% and 112.9%
respectively against its competitors.
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b) In last 3 years, Reliance Banking gave highest return of 30.2%. And In last 5 yr,
Reliance Media & Ent give maximum return of 88.7%.

2) Standard Deviation
Yr/Schemes

Reliance

Franklin

UTI

SBI

banking(G)

FMCG(G)

infrastructure(G) magnum

Reliance
Media&Ent(G)

Last1 yrs

0.128943375

0.054102785 0.094154994

Pharma(G)
0.095626797 0.107992407

Last3 yrs

0.115829428

0.060318612 0.104597968

0.109212679 0.118757826

Last 5yrs

0.102489584

0.060205922 0.09752141

0.09470864

0.104554454

INTERPRETATIONS:
a) In all the three years is concern Reliance Banking has highest Standard Deviation,
so it is highly volatile as compare to its competitors.
b) Franklin FMCG is less volatile as compare to its competitors, so it is less Risky to
invest in this Fund.
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3) Beta
Yr/Schemes Reliance
banking(G)

Franklin

UTI

SBI magnum Reliance

FMCG(G)

infrastructure(G)

Pharma(G)

Media&Ent(G)

Last1 yrs

1.230722931 0.162919496 0.914220081

0.85286803

1.031589083

Last3 yrs

0.213887277 0.054444645 0.096699523

0.130467228

0.231784503

Last 5yrs

0.248025961 0.093340307 0.145949941

0.168794462

0.26664004

INTERPRETATIONS:
a) In last 1 yr, Reliance Banking has high Beta of 1.2, so it is highly volatile as
compare to its competitors.

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b) Overall, Franklin FMCG is less volatile as compare to its competitors, so it is less
Risky to invest in this Fund.

4) Sharpe ratio
Yr/Schemes

Reliance

Franklin

UTI

SBImagnum

Reliance

banking(G)

FMCG(G)

infrastructure(G) Pharma(G)

Last1 yrs

1.867210636

2.60860683 1.550735632

1.919779766

1.738190637

Last3 yrs

0.701616713

0.59406659 0.296815592

0.125784902

-0.044702739

Last 5yrs

0.642094973

0.76680298 0.611539329

0.339000122

0.40984207

Media&Ent(G)

INTERPRETATIONS:
a) In last 1 yr Franklin FMCG has highest Sharpe Ratio of 2.6 as compare to its
competitors, so it is good indicator for it.
b) In last 3 yrs Reliance Banking & Franklin FMCG has high Sharpe Ratio of 0.7
and 0.5respectively and Reliance Media & Ent. has lowest of -0.4.
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c) In last 5 yrs, Franklin has highest Sharpe ratio of 0.7 and SBI has lowest of 0.3.

5.3 Large cap Funds


1) CAGR
Yrs/Schemes Reliance

UTI

JM large
cap

Birlasunlife

SBI magnum

adv fund

eq

vision

equity(G)

last 1 yrs

88.44

82.65

48.28

14.48

94.09

last 3 yrs

14.1

16.34

0.8

8.24

37.61

last 5 yrs

23.39

18.02

7.94

18.16

21.11

INTERPRETATIONS:
a) In last 1 yr, CAGR of SBI, Reliance vision & UTI has high by94%, 88.4%, and
82.6% respectively, as compare to its competitors.
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b) In last 3&5 yrs SBI gave highest return of about 37.6% &21.1% respectively.
c) Overall, Birlasunlife adv. Fund gave least return.

2) Standard Deviation
Yrs/Schemes Reliance

UTI

JM large

Birlasunlife

SBI magnum

Last 1 yrs

vision
equity(G)
0.09991376 0.0744288

cap
0.0783383

adv fund
0.115973242

eq
0.097667168

Last 3 yrs

0.10018448 0.0833512

0.0888638

0.112693896

0.105668883

Last 5 yrs

0.08864059 0.0780083

0.0813522

0.096871642

0.095151301

INTERPRETATIONS:
a) In last 1, 3&5 years, Birlasunlife adv. fund has high Standard Deviation, so it is
highly volatile as compare to its competitors.
b) Overall, UTI equity is least volatile fund among its competitors, so it is better to
invest in such a less risky fund.
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3) Beta
Yrs/Schemes Reliance

UTI

JM large

Birlasunlife

SBI magnum

Last 1 yrs

vision
equity(G)
0.17248455 0.7078600

cap
0.7575292

adv fund
1.128608674

eq
0.93092074

Last 3 yrs

0.13229572 0.1190345

0.0703577

0.165711517

0.139890907

Last 5 yrs

0.17248455 0.1607937

0.1049985

0.206156923

0.182037128

INTERPRETATIONS:

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a) In last 1 yr, Birlasunlife has a high Beta of 1.1 as compare to its competitors,
which shows high volatility.
b) In last 1yr, Reliance vision has low Beta (0.17)
c) JM large cap in last 3&5 yrs also has low Beta about 0.7 &0.1 respectively, so it is
less risky and safer to invest.
4) Sharpe Ratio
Yr/Schemes

Reliance

UTI

vision

equity(G)

JM large cap

Birlasunlife

SBI magnum eq

adv fund

Last 1 yrs

2.194170308 0.01409560

0.3844196

1.741029813 1.80743058

Last 3 yrs

0.377029792 0.46218302

-0.0158758

0.237019813 0.200605215

Last 5 yrs

0.646034027 0.5301262

0.2093977

0.485836378 0.53402252

INTERPRETATIONS:

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a) In last 1 yr Reliance vision, SBI eq& Birlasunlife

has high Sharpe Ratio about

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

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

respectively, which shows its poor Performance.

5.4 Midcap Fund


1) CAGR
Yrs/Schemes JM midcap

SBI magnum UTI

Kotak

Sundaram

mid cap

midcap

midcap

select mid cap

Last1yrs

110

119.2

129.86

109.6

139.49

Last3 yrs

7.9

1.2

13.14

5.2

15.94

Last 5yrs

14.54

16.86

16.49

17.19

28.38

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INTERPRETATIONS:
a) In last 1 yr, Sundaram midcap gave highest return about 139.4%, followed byUTI,
SBI and JM by 129.8%, 119%, and 110% respectively, and Kotak gave lowest retun
of 109.6%
b) In last 3&5 yrs, Sundaram gave highest return about 15.9% & 28.3% respectively.
And SBI gave lowest return.

2) Standard Deviation
Yrs/Schemes JM

SBI magnum UTI midcap

Kotak

Sundaram

midcap

mid cap

midcap

select mid cap

Last1yrs

0.1182776

0.156138896

0.1040285

0.1010611

0.150454556

Last3 yrs

0.1129622

0.144536727

0.1173093

0.1118037

0.130397639

Last 5yrs

0.102009

0.229935443

0.105609

0.09941857 0.109763284

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INTERPRETATIONS:
a) In last 1 yr, Standard Deviation of SBI midcap has very high about 0.15which
shows high volatility. Followed by Sundaram about 0.11.
b) In last 3& 5yrs, alsoSBI shows high Standard Deviation about 0.14 & 0.22.

3) Beta
Yrs/Schemes JM midcap

SBI magnum UTI

Kotak

Sundaram

mid cap

midcap

midcap

select mid cap

Last1yrs

1.143846

1.512159602

0.998759

0.9419961

1.428028244

Last3 yrs

0.154830

0.187077319

0.157491

0.1782199

0.184278143

Last 5yrs

0.192531

0.229935443

0.207778

0.21723842

0.21284543

INTERPRETATIONS:
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a) In last 1 yr, Beta of SBI and Sundaram has high about 1.5 &1.4 respectively, as
compare to its competitors .UTI and Kotak

shows low Beta about0.99 &0.94

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

4) Sharpe Ratio
Yrs/Schemes JM

SBI magnum

UTI midcap

Kotak

Sundaram select

midcap

mid cap

midcap

mid cap

last1yrs

1.883957

1.590404948

2.3660246

2.1446380

1.81157006

last3 yrs

0.230390

0.143719771

0.3559378

0.1710649

0.115906618

last 5yrs

0.388877

0.435169362

0.437773

0.48133648

0.682191305

INTERPRETATIONS:
a) In last 1year Sharpe Ratio of UTI is highest about 2.3 followed by
Kotak(2.1),JM(1.88),Sundaram(1.81) and SBI(1.5).

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b) In last 3 years, UTI & JM shows highest Sharpe ratio about 0.35 & 0.23
respectively. SBI showed lowest about 0.14.
c) In last 5 years, Sundaram (0.68) shows highest Sharpe ratio and JM (0.38) shows
lowest.

5.5 Small cap Fund


1) CAGR
Yrs/Schemes Sundaram JM

small Birlasunlife

L&T small Religare

small cap

& mid cap

small&mid cap

cap

small&mid

Last 1yr

9.4

113.48

140.75

119.77

cap
133.77

Last 3 yrs

6.51

-17.27

4.26

-14.99

7.36

Last 5 yrs

INTERPRETATIONS:

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a) In last 1 yr, Birlasunlife small midcap gave highest return about140.7% followed
by Religare small& midcap, L&T & JM about 133.7, 119.7%, and 113.4%
respectively.
b) In last 3 yr, Religare small cap give highest return about 7.3% against its
competitors.JM small cap gave -17%.

2) Standard Deviation
Yrs/Schemes Sundaram
small cap

JM small & Birlasunlife

L&T

Religare

mid cap

small&mid

small

small&mid cap

cap
0.119329293

cap
0.102897 0.084923964

Last1yr

0.052904985 0.14490943

Last3 yrs

0.098308914 0.160988697 0.122212359

0.138513 0.11489531

Last5 yrs

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INTERPRETATIONS:
a) JM small cap Funds have high Standard deviation, which shows high volatility as
compare to its competitors.
b) Sundaram small cap shows least standard deviation, which shows its strength.

3) Beta
Yrs/Schemes Sundaram
small cap

JM small & Birlasunlife

L&T

Religare

mid cap

small

small&mid cap

small&mid

Last 1yr

cap
0.757755664 1.277975835 1.132571413

cap
0.923006 0.791631306

Last3 yrs

0.156519161 0.233322213 0.179818858

0.491886 0.442382937

Last5 yrs

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INTERPRETATIONS:
a) In last 1 yr, there is high Beta in JM small&mid cap (1.2) and low in Sundaram
small cap(0.7)
b) In last 3 yrs,L&T and Religare shown high Beta about 0.49&0.44. Sundaram has
low Beta about 0.15.

4) Sharpe Ratio
Yrs/Schemes Sundaram
small cap

JM small & Birlasunlife

L&Tsmall

Religare

mid cap

cap

small&mid

small&mid

Last 1yr

cap
0.740297547 1.624960177 2.216180638

cap
2.258105041 2.902924217

Last 3 yrs

-0.52788846

-0.16756146

0.165643299

-0.32554

0.323392115

Last 5 yrs

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INTERPRETATIONS:
a) In last 1 yr, Religare small& midcap shows highest Sharpe ratio of 2.9 against its
competitors, whereas Sundaram shows lowest, which is0.74.
b) In last 3 yrs,again Religare shows high Sharpe ratio of 0.32 and low in Sundaram
about -.052.

CHAPTER 6
FINDINGS

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


6.1.1Performance Sheet (Diversified Funds)
Fig (in %)
Schemes

CAGR

CAGR

CAGR

Rank1 yr

Rank 2yrs

Rank 3yrs

1.Tata dev

(1yrs)
100

(3yrs)
20.3

(5yrs)
19.14

2.Kotak eq

86.03

13.08

21.11

3.Reliance

100

32.07

40.16

diversified
4.Sundaram Bal

71.52

12.61

16.47

5.HDFC

102.25

20.7

29.14

TOP50

6.1.2 Performance Sheet (Sector Funds)


Fig (in %)
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Schemes

CAGR

CAGR

CAGR

Rank1 yr

Rank 2yrs

Rank 3yrs

1.Reliance Banking

(1yrs)
120.55

(3yrs)
251.23

(5yrs)
25.37

2.Franklin FMCG

68.68

17.52

21.73

3.UTI infrastructure

66.77

10.89

23.23

4.SBI Pharma
5.Reliance

112.96
18.94

3.61
20.9

12.31
88.77

5
2

5
1

2
5

Media&Ent

6.1.3Performance Sheet (Large cap Funds)


Fig (in %)
Schemes

CAGR

CAGR

CAGR

Rank1 yr

Rank 2yrs

Rank 3yrs

1.Reliance Vision

(1yrs)
88.44

(3yrs)
14.1

(5yrs)
23.39

2.UTI Eq

82.65

16.34

18.02

3.JM largecap
4.Birlasunlife adv
5.SBI Eq

48.58
14.48
94.19

0.8
8.24
37.61

7.94
18.16
21.11

4
5
1

5
4
1

5
3
2

6.1.4Performance Sheet (Midcap Fund)


Fig (in %)

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Schemes

CAGR

CAGR

CAGR

Rank1 yr

Rank 2yrs

Rank

1JM midcap

(1yrs)
110

(3yrs)
7.9

(5yrs)
14.54

3yrs
5

2.SBI mid cap

119.2

1.2

16.86

3.UTI midcap

129.86

13.14

16.49

4.Kotak midcap

109.6

5.2

17.19

5.Sundaram midcap

139.49

15.94

28.38

6.1.5Performance Sheet (Small cap Fund)


Fig (in %)
Schemes

CAGR(

CAGR CAGR Rank1 yr

Rank 2yrs

Rank 3yrs

1.Sundaram small

1yrs)
9.4

(3yrs)
6.51

(5yrs)

cap
2.JM small&mid cap 113.48

-17.27

3.Birlasunlife small 140.75

4.26

midcap
4.L&T smallcap

119.75

-14.99

5.Religare small

133.77

7.36

midcap

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6.2Finding &suggestions
6.2.1Diversified Funds
a) The Performance of Tata Dividend & HDFC top200 are better than there
competitors because there Sharpe ratio & CAGR are relatively high against there
competitors, there Beta & Standard Deviation both are low.
b) The Performance of Reliance Diversified & Sundaram are poor because of there
low Sharpe ratio & CAGR. Also they are more risky as compare to there competitors
because of there high Beta.
c) I would suggest giving first priority to HDFC TOP200 and second to Tata
Dividend.

6.2.2 Sector Funds


a) The Performance of Reliance Banking on the Basis of CAGR is outperforming as
compare to its competitors. Its Sharpe ratio is also good after Franklin FMCG.
b) Those who want to take high return as well as risk Reliance Banking is good for
them because its Beta is also high among its competitors.

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

6.2.3 Large cap Funds


a) SBI & Reliance vision both have good CAGR and Sharpe ratio, But Reliance have
very less Beta as compare to SBI, so Reliance should be the priority for investment.
b) JM large cap & Birlasunlife adv both is poor performer as far as CAGR and
Sharpe ratio is concern, so try to avoid them.
6.3.4 Mid cap Funds
a) Sundaram select mid cap is the top performer in term of CAGR and Sharpe ratio,
but have relatively high Beta, It is good for Risk taking investors.
b) UTI is second best performer, also have low Beta as compare to Sundaram select
mid cap, so it is good for safe investment.
c) CAGR & Sharpe ratio of SBI is relatively low and its Beta and Standard Deviation
are very high as compare to its competitors, so try to avoid it.

6.3.5 Small cap Funds


a) Sharpe ratio and CAGR of Religare are relatively high, also its Beta is low, and so
it is good to invest in this fund.
b) Sundaram small cap has very low CAGR & Sharpe ratio.

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.

CHAPTER 6
REFRENCES

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6.1 Books:
1) Donald E Fischer ,Security Analysis & Portfolio Management

6.2) Web sites:


1) http://www.bluechipindia.co.in/
2) http://www.franklintempletonindia.com
3) http://www.utimf.com
4) http://www.hdfcfund.com/
5) http://mutualfund.birlasunlife.com
6) http://reliancemutual.com/
7) http://investopedia.com
8) http://money.rediff.com
9) http://moneycontrol.com

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