Comparative Analysis of Mutual Fund With India Infoline by Nikita Chinchane - New

A PROJECT REPORT
ON
COMPARATIVE ANALYSIS OF MUTUAL FUND ON THE BASIS OF ALPHA, BETA, AND STANDARD DEVIATION
FOR
INDIA INFOLINE, PUNE
BY
NIKITA BHARAT CHINCHANE
MBA Semester III
Project Guide Prof. VAISHAMPAYAN
In Partial Fulfillment of the Requirements of the Two-Year Full-Time PGPM Programme of the SMVIM (St. Mira Vishwakarma Institute Of Management) Pune
AY: 2007-08
ACKNOWLEDGEMENT
I take this opportunity to express my deepest gratitude to all those people, without those spontaneous support, guidance, encouragement and understanding, this project would never had reached completion.
It was my privilege to work with India Infoline Ltd. I am indebted to Kamlesh Tiwari (Branch Manager), Chetan Singh Rajpurohit (Sales Manager) who acted as philosopher and guide through all the stages of completion of the project.
Mere words of gratitude will never suffice to their valuable guidance, patience and faith shown in my work.
I would also like to avail this opportunity to express my sincere thanks and profound gratitude to my project guide Prof (Vaishamparan), whose valuable knowledge and guidance have me complete this project successfully.
I acknowledge the timely help extended by all my colleagues and all the unmentioned names from the concerned field.
INDEX
Sr.No.
TOPIC
Page no.
EXECUTIVE SUMMARY
RESEARCH OBJECTIVE
SCOPE OF PROJECT
RESEARCH METHODOLGY
FINDINGS AND ANALYSIS
LIMITATIONS
ABOUT INDIA INFOLINE
INTRODUCTION OF MUTUAL FUND
12
COMPARISON OF MUTUAL FUND
37
10
CONCLUSION
11
BIBLIOGRAPHY
Executive Summary
The
project
has
been
carried
out
at
India
Infolin e Ltd
with
the
title
Comparative Analysis of Mutual Fund on the basis o f Alpha, Beta and Standard Deviation.
The main function of having analysis of Mutual fund is to pinpoint the strong points and weaknesses of mutual fund schemes.
For this I have taken the following parameters:
Analyzing Mutual Fund using:-
1. Alpha: - I came to know how particulars Mutual Fund schemes performed related to what it was expected to do.
2. Beta:- By comparing Mutual Fund on the basis of beta we come to know how volatile a particular Mutual Fund as related to stock market is.
3. Standard Deviation:- The standard deviation of a fund measures this risk by measuring the degree to which the fund fluctuates in relation to its mean return.
4. Schemes selected for project:-
Equity Diversified
Balanced Fund
Debt fund
Liquid fund
RESEARCH OBJECTIVE:
To evaluate investment performance of selected mutual funds in terms of risk and return. Also to analyze the performance of mutual fund schemes on the basis of various parameters. Primarily to understand the basic concepts of Mutual fund and its benefits as an investment avenue.
Secondly, to compare and evaluate the performance of different schemes of mutual
fund companies on the basis of risk, return and volatility
SCOPE OF PROJECT:
The Schemes were categorized and selected on evaluating their performance and relative risk. The scope of the project is mainly concentrated on the different categories of the mutual funds such as equity schemes, debt funds, balanced funds and liquid fund.
RESEARCH METHODOLGY:
Research Methodology is a very organized and systematic medium through which a particular case or problem can be solved. It is analytical, descriptive and quantitative research where the comparison between the different mutual fund schemes is made on the
basis of risk, volatility and return.
FINDINGS AND ANALYSIS:
The collection of information is based on the secondary probe. The information has been collected through various books, and internet.
An attempt has been made to evaluate the performance of the selected mutual fund schemes. Performance of mutual fund schemes has been evaluated by using the following performance measures
a) Risk
b) Standard Deviation.
c) Beta
LIMITATIONS:
To get an insight in the process of risk and return and deployment of funds by fund manager is difficult.
The project is unable to analyse each and every scheme of mutual funds to create awarness about risk and return. The risk and return of mutual fund schemes can change according to the market conditions
ABOUT THE COMPANY
INDIA INFOLINE:
INDIA INFOLINE is a one-stop financial services shop, most respected for quality of its advice, personalized service and cutting-edge technology.
VISION is to be the most respected company in the financ ial services space.
India Infoline Ltd:
India Infoline Ltd is listed on both the leading stock exchanges in India, viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE). The India Infoline group, comprising the holding company, India Infoline Ltd and its subsidiaries, straddles the entire financial services space with offerings ranging from Equity research, Equities and derivatives trading, Commodities trading, Portfolio Management Services, Mutual Funds, Life Insurance, Fixed deposits, GoI bonds and other small savings instruments to loan products and Investment banking. India Infoline also owns and manages the websites, www.indiainfoline.com and www.5paisa.com .
India Info line Ltd, being a listed entity, is regulated by SEBI (Securities and Exchange Board of India). It undertakes equities research which is acknowledged by none other than Forbes as 'Best of the Web' and 'a must read for investors in Asia'.
India Infoline's research is available not just over the internet but also on international wire services like Bloomberg , Thomson First Call and Internet Securities where it is amongst the most read Indian brokers.
Its various subsidiaries are in different lines of business and hence are governed by different regulators.
Geographical presence
IIL has pan-India presence across 94 cities. It started off with major branches in metros and now it is focusing on Tier II and III cities. In Q1-FY07 the company opened 56 branches, taking the total number of branches to 233 branches. Almost 50%of the revenue comes from centers in Maharashtra and Delhi.
Followed by other regions.
Investment Highlights
Strong growth in Industry volumes and rising retail participation Average daily volumes in the equity markets (cash and derivative combined) have increased by 72%from to Rs.167bn in FY 05 to Rs.288bn in FY 06.With the economy growing at 78% a mounting per capita income and growing BPO culture, there is a new class of young investors, which are moving towards the equity market.
IIL is majorly present in the retail segment. With the rising income levels, risk- taking ability of people and the confidence in the India Inc, participation from the retail crowd is increasing y-o-y. IIL is aggressively increasing its presence by opening branches in
different cities. In FY QI-07, they roll out 56 new branches and acquired 25000 new customers. And it expects them to have 350 and 430 branches by FY 08 respectively.
The subsidiaries of India Info line Ltd are:
India Infoline Securities Pvt Ltd:
India Infoline Securities Pvt Ltd is a 100% subsidiary of India Infoline Ltd, which is engaged in the businesses of Equities broking and Portfolio Management Services. It holds memberships of both the leading stock exchanges of India viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE). It offers broking services in the Cash and Derivatives segments of the NSE as well as the Cash segment of the BSE.
India Infoline Commodities Pvt Ltd:
India Infoline Commodities Pvt Ltd is a 100% subsidiary of India Infoline Ltd, which is engaged in the business of commodities broking. They have memberships with the MCX and NCDEX, two leading Indian commodities exchanges, and has recently acquired membership of DGCX.
India Infoline Distribution Co Ltd (IILD):
India Infoline Distribution Co Ltd is a 100% subsidiary of India Infoline Ltd and is engaged in the business of distribution of Mutual Funds, IPOs, Fixed Deposits and other small savings products. It is one of the largest 'vendor-independent' distribution houses and has a wide pan-India footprint of over 232 branches coupled with a huge number of 'feet-on-street', which help source and service customers across the length and breadth of India.
Mortgages & Loans:
IILD has also entered the business of distribution of mortgages and loan products during the year 2005-2006.
India Infoline Insurance Services Ltd:
India Infoline Insurance Services Ltd is also a 100% subsidiary of India Infoline Ltd and is a registered Corporate Agent with the Insurance Regulatory and Development Authority (IRDA). It is the largest Corporate Agent for ICICI Prudential Life Insurance Co Ltd, which is India's largest private Life Insurance Company.
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India Infoline Investment Services Ltd:
India Infoline Investment Service Ltd is also a 100% subsidiary of India Infoline Ltd. It has an NBFC licence from the Reserve Bank of India (RBI) and offers marginfunding facility to the broking customers.
Management of India infoline:
Mr. Nirmal Jain
Nirmal Jain is the founder and Chairman of India Info line Ltd. He holds an MBA degree from IIM Ahmedabad, and is a Chartered Accountant and a Cost Accountant. He has had an impeccable professional and academic track record. He then joined hands with two local brokers to set up their equity research division Inquire, in 1994. His work set new standards for equity research in India. In 1995, he founded his own independent financial research company, now known as India Info line Ltd.
Mr. R Venkataraman
Venkataraman is the co-promoter and Executive Director of India Infoline Ltd. He holds a B.Tech degree in Electronics and Electrical Communications Engineering from IIT Kharagpur and an MBA degree from IIM Bangalore. He has held senior managerial positions in various divisions of ICICI Limited, including ICICI Securities Limited, their investment banking joint venture with J P Morgan of USA and with BZW and Taib Capital Corporation Limited. He has also held the position of Assistant Vice President with G E Capital Services India Limited in their private equity division.
The Board of Directors
Apart from Nirmal Jain and R Venkataraman, the Board of Directors of India Infoline comprises:
Mr Sat Pal Khattar (Non Executive Director)
Mr Sanjiv Ahuja (Independent Director)
Mr Nilesh Vikamsey (Independent Director)
Mr Kranti Sinha (Independent Director)
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INTRODUCTION TO 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 invested by the fund manager in different types of securities depending upon the objective of the scheme.
These could range from shares to debentures to money market instruments. The income earned through these investments and the capital appreciation realized by the scheme are shared by its unit holders in proportion to the number of units owned by them (pro rata).
Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed portfolio at a relatively low cost. Anybody with an investible surplus of as little as a few thousand rupees can invest in Mutual Funds.
Each Mutual Fund scheme has a defined investment objective and strategy
mutual fund is the ideal investment vehicle for todays complex and modern financial scenario. Markets for equity shares, bonds and other fixed income instruments, real estate, derivatives and other assets have become mature and information driven. Price changes in these assets are driven by global events occurring in faraway places.
A typical individual is unlikely to have the knowledge, skills, inclination and time to keep track of events, understand their implications and act speedily. An individual also finds it difficult to keep track of ownership of his assets, investments, brokerage dues and bank transactions etc.
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Draft offer document is to be prepared at the time of launching the fund. Typically, it pre specifies the investment objectives of the fund, the risk associated, the costs involved in the process and the broad rules for entry into and exit from the fund and other areas of operation. In India, as in most countries, these sponsors need approval from a regulator, SEBI (Securities exchange Board of India) in our case. SEBI looks at track records of the sponsor and its financial strength in granting approval to the fund for commencing operations.
A sponsor then hires an asset management company to invest the funds according to the investment objective. It also hires another entity to be the custodian of the assets of the fund and perhaps a third one to handle registry work for the unit holders (subscribers) of the fund.
In the Indian context, the sponsors promote the Asset Management Company also, in which it holds a majority stake. In many cases a sponsor can hold a 100% stake in the Asset Management Company (AMC). E.g. Birla Global Finance is the sponsor of the Birla Sun Life Asset Management Company Ltd., which has floated different mutual funds schemes and also acts as an asset manager for the funds collected under the schemes.
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ORGANIZATION OF A MUTUAL FUND
There are many entities involved and the diagram below illustrates the organizational set up of a mutual fund
Organization of a Mutual Fund
A Mutual Fund is set up in the form of trust, which has sponsor, trustees, asset management company (AMC), and custodian. The trust is established by sponsor or more than one sponsor who is like a promoter of company. The trustee of mutual fund holds its property for the benefit of unit holders. Asset Management Company (AMC) approved by SEBI manages the funds by making investments in various types of securities. Custodian, who registered with SEBI, holds the securities 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 mutual fund.
SEBI regulations required 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 sponsors. Also, 50% of the directors of the AMC must be independent. All mutual funds are required to be registered with SEBI before they launch their schemes.
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MAJOR MUTUAL FUND COMPANIES IN INDIA
ABN AMRO MUTUAL FUND
ABN AMRO Mutual Fund was setup on April 15, 2004 with ABN AMRO Trustee(India) Pvt. Ltd. as the Trustee Company. The AMC, ABN AMRO Asset Management (India) Ltd. was incorporated on November 4, 2003. Deutsche Bank A G is the custodian of ABN AMRO Mutual Fund.
BIRLA SUN LIFE MUTUAL FUND
Birla Sun Life Mutual Fund is the joint venture of Aditya Birla Group and Sun Life Financial. Sun Life Financial is a global organization evolved in 1871 and is being represented in Canada, the US, the Philippines, Japan, Indonesia and Bermuda apart from India. Birla Sun life Mutual Fund follows a conservative long-term approach to investment. Recently it crossed a AUM of
Rs.10, 000 crores.
BANK OF BARODA MUTUAL FUND
Bank of Baroda Mutual Fund or BOB Mutual Fund was setup on October 30, 1992 under the sponsorship of Bank of Baroda. BOB Assets Management Company Limited is the AUM of BOB Mutual Fund and was incorporated on November 5, 1992. Deutsche Bank AG is the custodian.
HDFC MUTUAL FUND
HDFC Mutual Fund was setup on June 30, 2000 with two sponsors namely
Housing Development Finance Corporation Limited and Standard Life Investments Limited.
ING VYSYA MUTUAL FUND
ING Yysya Mutual Fund was setup on February 11, 1999 with the same named Trustee Company. It is a joint venture of Vysya and ING. The AMC, ING Investment Management (India) Pvt. Ltd. was on corporaed on April 6, 1998.
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PRUDENTIAL ICICI MUTUAL FUND
The mutual fund of ICICI is a joint venture with Prudential Plc. Of America, one of the largest life insurance companies in the US of A. Prudential ICICI Mutual Fund was setup on 13 October, 1993 with two sponsors, Prudential Plc. and the AMC is Prudential ICICI Asset Management Company Limited incorporated on 22 June, 1993.
SAHARA MUTUAL FUND
Sahara Mutual Fund was setup on July 18, 1996 with Sahara India financial Corporation Ltd. as the sponsor. Sahara Assets Management Company Private Limited incorporated on August 31, 1995 works as the AMC of Sahara Mutual Fund. The paid up capital of the AMC stands at Rs.25.8 crore.
STATE BANK OF INDIA MUTUAL FUND
State Bank of India Mutual Fund is the first Bank sponsored Mutual Fund to launch offshore fund, the India Magnum Fund with a corpus of Rs.225 crore approximately. Today it is the largest Bank sponsored Mutual Fund in India. They already launched 35 schemes out of which 15 have already yield handsome returns to investors. State Bank of India Mutual Fund has more than Rs.5, 500 crores as AUM. Now it has an investor base of over 8 lakhs spread over 18 schemes.
TATA MUTUAL FUND
TATA Mutual Fund is a Trust under the Indian Trust Act, 1882. the sponsors for Tata Mutual Fund are Tata Sons Ltd., and Tata Investment Corporation Ltd. the investment manger is Tata management Limited is one of the fastest in the country with more than Rs.7,703 Crore(as on 2005) of AUM.
KOTAK MAHINDRA ASSTE MANAGEMENT COMPANY
Kotak Mahindra Asset Management Company is a subsidiary of KMBL. It is presently having more than 1, 99,818 investors in its various schemes. KMAMC stared its operations in December 1998. Kotak Mahindra Mutual Fund offers schemes catering to investors with varying risk return profiles. It was the first company to launch to dedicated gilt scheme investing only in government securities.
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UNIT TRUST OF INDIA MUTUAL FUND
UTI Asset Management Company Private Limited, established in Jan 24, 2003 manages the UTI Mutual Fund with the support of UTI Trustee Company Private Limited. UTI Asset Management Company presently manages a corpus of over Rs.20, 000 crore. The sponsors of UTI Mutual Fund are Bank of Baroda, Punjab National Bank, State Bank of India, and Life Insurance Corporation of India. The schemes of UTI Mutual Fund are Liquid Funds, assets Management Funds, Index Funds and Balanced Funds.
RELIANCE MUTUAL FUND
Reliance Mutual Fund was established as trust under Indian Trusts Act, 1882.The sponsor of RMF is Reliance Capital Limited and Reliance Capital Trustee Co. Limited is the Trustee. It was registered on June 30, 1995 as Reliance Mutual Fund which was changed on March 11, 2004. Reliance Mutual Fund was formed for launching of various schemes under which, units are issued to the public with a view to contribute to the capital market and to provide investors the opportunities to make investments in diversified securities.
STANDARD CHARTERED MUTUAL FUND
Standard Chartered Mutual Fund was setup on March 13, 2000 sponsored by Standard Chartered Bank. The Trustee is Standard Chartered Trustee Company Pvt. Ltd. Standard Chartered Asset Management Company Pvt. Ltd is the AMC which was incorporated with SEBI on December 20, 1999.
FRANKLIN TEMPLETON MUTUAL FUND
The group, Franklin Templeton investment is a California based company with a global AUM of US $409.2(as on 2005). It is one of the largest financial service group in the world. Investors can buy or sell the Mutual Fund through their financial advisor or through mail or through their website. They have open end Diversified Equity schemes, Open end Sector Equity schemes, Open end Hybrid schemes, Open end tax saving schemes, Open end income and liquid schemes, Closed end Income schemes and Open end Fund of Funds schemes to offer.
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MORGAN STANLEY MUTUAL FUND
Morgan Stanley is a world wide financial services company and its leading in the market in securities, investment management and credit services. Morgan Stanley investment management was established in the year 1975. it provides customized asset management services and products to governments, corporations, pension funds and non profit organizations. Its services are also extending to high net worth individuals and retail investors. In India it is known as Morgan Stanley investment management Private Ltd. and its AMC is Morgan Stanley Mutual Fund. This is the first closed end diversified equity scheme serving the needs of Indian retail investors focusing on the long term capital appreciation.
ESCORT MUTUAL FUNDS
Escort Mutual Funds was set up on April 15th, 1996 with Escorts Finance Ltd. as its sponsor. The Trustee Company is Escorts Investments Trust Ltd.. its AMC was incorporated on Dec1st, 95 with the name Escorts Asset Management Ltd.
ALLAINCE CAPITAL MUTUAL FUND
Allaince Capital Mutual Fund was set up on December 30, 1994 with Alliance Capital Management Corp. of Delaware (USA) as sponsor. The Trustee is ACAM Trust Company Pvt. Ltd. and AMC, the Alliance Capital Asset Management India Pvt. Ltd. with the corporate office in Mumbai.
BENCHMARK MUTUAL FUND
Benchmark Mutual Fund was setup on June 12, 2001 with Niche Financial
Services Pvt. Ltd. as the sponsor and Benchmark Trustee Company Pvt. Ltd. as the trustee Company. incorporated on October 16, 2000 and headquartered in Mumbai, Benchmark Assets Management Company Pvt. Ltd. is the AMC.
CAN BANK MUTUAL FUND
Can Bank Mutual Fund was setup on December 19, 1987 with Canara Bank acting as the sponsor. Canara bank investment Management Service Ltd. incorporated on March 2, 1993 is the AMC. The Corporate Office of the AMC is in Mumbai.
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CHOLA MUTUAL FUND
Chola Mutual Fund under the sponsorship of Cholamandalam Investment & Finance Company Ltd. was setup on January 3, 1997. Cholamandalam Trustee Co. Ltd. is the Trustee Company and AMC is Cholamandalam AMC Limited.
LIC MUTUAL FUND
Life Insurance Corporation on India setup LIC Mutual Fund on 19th June 1989. It contributed Rs.2 crore 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 Company started its bsiness on 29th April 1994. The Trustees of LIC Mutual Fund have appointed Jeevan Bima Sahayog Asset Management Company Ltd. as the Investment Managers for mutual fund.
GIC MUTUAL FUND
GIC Mutual Fund, sponsored by General Insurance Corporation of India, a government of India undertaking and the four Public Sector General Insurance Companies, viz. National Insurance Co. Ltd, the New India Assurance Co. Ltd. the Oriental Insurance Co. Ltd and United India Insurance Co. Ltd and is constituted as a Trust in Accordance with the provisions of the Indian Trusts Act, 1882.
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Types of Mutual Funds
Mutual fund schemes may be classified on the basis of its structure and its investment objective.
By Structure:
Open-ended Funds
An open-end fund is one that is available for subscription all through the year. These do not have a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value ("NAV") related prices. The key feature of open-end schemes is liquidity.
Closed-ended Funds
A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15 years. The fund is open for subscription only during a specified period. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where they are listed. In order to provide an exit route to the investors, some close-ended funds give an option of selling back the units to the Mutual Fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor.
Interval Funds
Interval funds combine the features of open-ended and close-ended schemes. They are open for sale or redemption during pre-determined intervals at NAV related prices.
By Investment Objective:
Growth Funds:
The aim of growth funds is to provide capital appreciation over the medium to long- term. Such schemes normally invest a majority of their corpus in equities. It has been proven that returns from stocks, have outperformed most other kind of investments held over the long term. Growth schemes are ideal for investors having a long-term outlook seeking growth over a period of time.
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Income Funds:
The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures and Government securities. Income Funds are ideal for capital stability and regular income.
Balanced Funds:
The aim of balanced funds is to provide both growth and regular income. Such schemes periodically distribute a part of their earning and invest both in equities and fixed income securities in the proportion indicated in their offer documents. In a rising stock market, the NAV of these schemes may not normally keep pace, or fall equally when the market falls. These are ideal for investors looking for a combination of income and moderate growth.
Money Market Funds
The aim of money market funds is to provide easy liquidity, preservation of capital and moderate income. These schemes generally invest in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and interbank call money. Returns on these schemes may fluctuate depending upon the interest rates prevailing in the market. These are ideal for Corporate and individual investors as a means to park their surplus funds for short periods.
Load Funds:
A Load Fund is one that charges a commission for entry or exit. That is, each time you buy or sell units in the fund, a commission will be payable. Typically entry and exit loads range from 1% to 2%. It could be worth paying the load, if the fund has a good performance history.
No-Load Funds:
A No-Load Fund is one that does not charge a commission for entry or exit. That is, no commission is payable on purchase or sale of units in the fund. The advantage of a no load fund is that the entire corpus is put to work.
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Other Schemes:
Tax Saving Schemes:
These schemes offer tax rebates to the investors under specific provisions of the Indian Income Tax laws as the Government offers tax incentives for investment in specified avenues. Investments made in Equity Linked Savings Schemes (ELSS) and Pension Schemes are allowed as deduction u/s 88 of the Income Tax Act, 1961. The Act also provides opportunities to investors to save capital gains u/s 54EA and 54EB by investing in Mutual Funds, provided the capital asset has been sold prior to April 1, 2000 and the amount is invested before September 30, 2000.
Special Schemes:
Industry Specific Schemes:
Industry Specific Schemes invest only in the industries specified in the offer document. The investment of these funds is limited to specific industries like InfoTech, FMCG, Pharmaceuticals etc.
Index Schemes:
Index Funds attempt to replicate the performance of a particular index such as the BSE Sensex or the NSE 50.
Sectoral Schemes:
Sectoral Funds are those, which invest exclusively in a specified industry or a group of industries or various segments such as 'A' Group shares or initial public offerings.
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BENEFITS OF MUTUAL FUND INVESTMENT
Professional Management:
Mutual Funds provide the services of experienced and skilled professionals, backed by a dedicated investment research team that analyses the performance and prospects of companies and selects suitable investments to achieve the objectives of the scheme.
Diversification:
Mutual Funds invest in a number of companies across a broad cross-section of industries and sectors. This diversification reduces the risk because seldom do all stocks decline at the same time and in the same proportion. You achieve this diversification through a Mutual Fund with far less money than you can do on your own.
Convenient Administration:
Investing in a Mutual Fund reduces paperwork and helps you avoid many problems such as bad deliveries, delayed payments and follow up with brokers and companies. Mutual Funds save your time and make investing easy and convenient.
Return Potential:
Over a medium to long-term, Mutual Funds have the potential to provide a higher return as they invest in a diversified basket of selected securities.
Low Costs:
Mutual Funds are a relatively less expensive way to invest compared to directly investing in the capital markets because the benefits of scale in brokerage, custodial and
other fees translate into lower costs for investors.
Liquidity:
In open-end schemes, the investor gets the money back promptly at net asset value related prices from the Mutual Fund. In closed-end schemes, the units can be sold on a stock exchange at the prevailing market price or the investor can avail of the facility of direct repurchase at NAV related prices by the Mutual Fund.
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Transparency:
You get regular information on the value of your investment in addition to disclosure on the specific investments made by your scheme, the proportion invested in each class of assets and the fund manager's investment strategy and outlook.
Flexibility:
Through features such as regular investment plans, regular withdrawal plans and dividend reinvestment plans, you can systematically invest or withdraw funds according to your needs and convenience.
Affordability
Investors individually may lack sufficient funds to invest in high-grade stocks. A mutual fund because of its large corpus allows even a small investor to take the benefit of its investment strategy.
Choice of Schemes
Mutual Funds offer a family of schemes to suit your varying needs over a lifetime.
Well Regulated
All Mutual Funds are registered with SEBI and they function within the provisions of strict regulations designed to protect the interests of investors. The operations of Mutual Funds are regularly monitored by SEBI.
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LIMITATION OF MUTUAL FUND INVESTMENT
1.
No Control Over Cost:
An Investor in mutual fund has no control over the overall costs of investing. He pays an investment management fee (which is a percentage of his investments) as long as he remains invested in fund, whether the fund value is rising or declining. He also has to pay fund distribution costs, which he would not incur in direct investing.
However this only means that there is a cost to obtain the benefits of mutual fund services. This cost is often less than the cost of direct investing.
2.
No Tailor-Made Portfolios:
Investing through mutual funds means delegation of the decision of portfolio composition to the fund managers. The very high net worth individuals or large corporate investors may find this to be a constraint in achieving their objectives.
However, most mutual funds help investors overcome this constraint by offering large no. of schemes within the same fund.
3.
Managing A Portfolio Of Funds:
Availability of large no. of funds can actually mean too much choice for the investors. He may again need advice on how to select a fund to achieve his objectives.
AMFI has taken initiative in this regard by starting a training and certification program for prospective Mutual Fund Advisors. SEBI has made this certification
compulsory for every mutual fund advisor interested in selling mutual fund.
a.
Taxes:
During a typical year, most actively managed mutual funds sell anywhere from 20 to 70 percent of the securities in their portfolios. If your fund makes a profit on its sales, you will pay taxes on the income you receive, even if you reinvest the money you made.
b.
Cost of Churn:
The portfolio of fund does not remain constant. The extent to which the portfolio changes is a function of the style of the individual fund manager i.e. whether he is a buy and hold type of manager or one who aggressively churns the fund. It is also dependent
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on the volatility of the fund size i.e. whether the fund constantly receives fresh subscriptions and redemptions. Such portfolio changes have associated costs of brokerage, custody fees etc. that lowers the portfolio return commensurately.
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Net Asset Value (NAV)
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". We also abide by the same convention.
Calculation of NAV
The most important part of the calculation is the valuation of the assets owned by the fund. Once it is calculated, the NAV is simply the net value of assets divided by the number of units outstanding. The detailed methodology for the calculation of the asset value is given below.
Asset value is equal to
Sum of market value of shares/debentures
Liquid assets/cash held, if any
Dividends/interest accrued Amount due on unpaid assets
Expenses accrued but not paid
HISTORY OF MUTUAL FUND:
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Mutual Funds in India (1964-2000)
The end of millennium marks 36 years of existence of mutual funds in this country. The ride through these 36 years is not been smooth. Investor opinion is still divided. While some are for mutual funds others are against it.
UTI commenced its operations from July 1964 .The impetus for establishing a formal institution came from the desire to increase the propensity of the middle and lower groups to save and to invest. UTI came into existence during a period marked by great political and economic uncertainty in India. With war on the borders and economic turmoil that depressed the financial market, entrepreneurs were hesitant to enter capital market.
UTI commenced its operations from July 1964 "with a view to encouraging savings and investment and participation in the income, profits and gains accruing to the Corporation from the acquisition, holding, management and disposal of securities." Different provisions of the UTI Act laid down the structure of management, scope of business, powers and functions of the Trust as well as accounting, disclosures and regulatory requirements for the Trust.
The opening up of the asset management business to private sector in 1993 saw international players like Morgan Stanley, Jardine Fleming, JP Morgan, George Soros and Capital International along with the host of domestic players join the party. But for the equity funds, the period of 1994-96 was one of the worst in the history of Indian Mutual Funds.
1999-2000 Year of the funds
Mutual funds have been around for a long period of time to be precise for 36 yrs but the year 1999 saw immense future potential and developments in this sector. This year signaled the year of resurgence of mutual funds and the regaining of investor confidence in these MFs. This time around all the participants are involved in the revival of the funds the AMCs, the unit holders, the other related parties. However the
sole factor that gave lifr to the revival of the funds was the Union Budget. The budget brought about a large number of changes in one stroke. An insight of the Union Budget on mutual funds taxation benefits is provided later.
It provided centrestage to the mutual funds, made them more attractive and provides acceptability among the investors. The Union Budget exempted mutual fund
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dividend given out by equity-oriented schemes from tax, both at the hands of the investor as well as the mutual fund. No longer were the mutual funds interested in selling the concept of mutual funds they wanted to talk business which would mean to increase asset base, and to get asset base and investor base they had to be fully armed with a whole lot of schemes for every investor .So new schemes for new IPOs were inevitable. The quest to attract investors extended beyond just new schemes. The funds started to regulate themselves and were all out on winning the trust and confidence of the investors under the aegis of the Association of Mutual Funds of India (AMFI)
One cam say that the industry is moving from infancy to adolescence, the industry is maturing and the investors and funds are frankly and openly discussing difficulties opportunities and compulsions.
Future Scenario
The asset base will continue to grow at an annual rate of about 30 to 35 % over the next few years as investors shift their assets from banks and other traditional avenues. Some of the older public and private sector players will either close shop or be taken over.
Out of ten public sector players five will sell out, close down or merge with stronger players in three to four years. In the private sector this trend has already started with two mergers and one takeover. Here too some of them will down their shutters in the near future to come.
But this does not mean there is no room for other players. The market will witness a flurry of new players entering the arena. There will be a large number of offers from various asset management companies in the time to come. Some big names like Fidelity, Principal, Old Mutual etc. are looking at Indian market seriously. One important reason for it is that most major players already have presence here and hence these big names would hardly like to get left behind.
The mutual fund industry is awaiting the introduction of derivatives in India as
this would enable it to hedge its risk and this in turn would be reflected in its Net Asset Value (NAV).
SEBI is working out the norms for enabling the existing mutual fund schemes to trade in derivatives. Importantly, many market players have called on the Regulator to
29
initiate the process immediately, so that the mutual funds can implement the changes that
are required to trade in Derivatives.
GROWTH IN ASSETS UNDER MANAGEMENT
RECENT TRENDS IN MUTUAL FUND INDUSTRY
30
The most important trend in the mutual fund industry is the aggressive expansion of the foreign owned mutual fund companies and the decline of the companies floated by nationalized banks and smaller private sector players. Many nationalized banks got into the mutual fund business in the early nineties and got off to a good start due to the stock market boom prevailing then. These banks did not really understand the mutual fund business and they just viewed it as another kind of banking activity.
Few hired specialized staff and generally chose to transfer staff from the parent organizations. The performance of most of the schemes floated by these funds was not good. Some schemes had offered guaranteed returns and their parent organizations had to bail out these AMCs by paying large amounts of money as the difference between the guaranteed and actual returns. The service levels were also very bad.
Most of these AMCs have not been able to retain staff, float new schemes etc. and it is doubtful whether, barring a few exceptions, they have serious plans of continuing the activity in a major way. The experience of some of the AMCs floated by private sector Indian companies was also very similar. They quickly realized that the AMC business is a business, which makes money in the long term and requires deep-pocketed support in the intermediate years.
Some have sold out to foreign owned companies, some have merged with others and there is general restructuring going on. The foreign owned companies have deep pockets and have come in here with the expectation of a long haul. They can be credited with introducing many new practices such as new product innovation, sharp improvement in service standards and disclosure, usage of technology, broker education and support etc. In fact, they have forced the industry to upgrade itself and service levels of organizations like UTI have improved dramatically in the last few years in response to the competition provided by these.
31
WHY SHOULD INVESTORS INVEST IN MUTUAL FUND?
An investor avails of the service of experienced and skilled professionals who are backed by a dedicated of companies and selects suitable investments to achieve the objectives of the schemes.
Mutual funds invest in a number of companies across a broad cross- section of industries and sectors. This diversification reduces the risk because seldom do all the stocks decline at the same time and in the same proportion. The investors achieve this diversification through a mutual fund with far less money than you can do on our own.
Investing in a mutual fund reduces paperwork and helps an investor avoid many problems such as bad deliveries, delayed payments and unnecessary follow.
32
EMERGING ISSUES IN MUTUAL FUND
Rating of Mutual Fund Schemes:
Total returns has been the criteria for measuring the performance of mutual fund. Therefore, CRISIL has development a composite performance ranking which measures performance for each of the open- ended schemes. According to CRISIL, this measures is applicable only to those schemes, which are at least two years old and disclose 100% of their portfolios.
Changes in Mutual Fund due to the Advent of Net:
As per SEBI regulations, bond funds and equity funds can charge a maximum of 2.25% and 2.5% as administrative fees, respectively. Mutual Funds could bring down their administrative costs to 0.75%, if trading is done online and consequently improves the return potential of their schemes. Mutual Funds could provide better advise or servise to their investors through the Net.
New Norms on NPA Classification:
The Malegan committee has made important recommendations regarding norms on classification of NPAs in debt securities and norms for valuation of liquid securities in a mutual fund schemes. The committee has recommended that debt securities held by mutual fund in their portfolio can be classified as NPA, if the principal or interest is not received for six months. The mutual funds will have to disclose the NPAs to unit holders in a half-yearly basis.
INFLUENCE OF TECHNOLOGY:
A majority of the mutual fund have their own websites providing basic information relating to the schemes. Mutual Fund have begun to use electronic fund transfer method top remit their dividends and redemption proceeds. However, the most significant influence of technology is seen in servicing investors. So technology can bridge the gap between investor education and products positioning.
PRODUCT INNOVATION:
Product innovation is an emerging feature in the mutual fund industry in India. Most of the products offered by mutual fund can be divided among three classes of cash
33
funds, income funds and equity funds. The year 2002 was different in that the products offered were far more innovative. Templeton India launched a debt fund that would invest predominantly in floating rate bonds.
INDICES FOR MUTUAL FUNDS:
The AMFI has recently launched four indices for gilt funds and another set of indices for balanced funds, bond funds, monthly income plans and liquid funds. The indices, which have been developed and will be maintained by ICICI securities and finance companied and CRISIL.com, respectively, will be mandated for use by mutual funds to enable the comparison of performance.
FUNDS OF FUNDS:
The SEBI may soon permit mutual funds to float a new category of funds called funds of funds, which will invest in other mutual fund schemes. These scheme will enable people to invest in different mutual funds schemes through a single find.
34
MUTUAL FUND BEST PRCTICES
THE PRACTICE OF RESTFUL
Risk- Reward Relationship:
A clear and direct relationship of risk with reward has to be developed and the concept instilled in the mind of the investor, and this is the basis of all classification of Mutual Fund.
Ease of Business:
The business of Mutual Fund is not an easy one. It is easy only for the ones who have either been in the business for a long time, or for the people, institutions which have been in the investment space for a long time and are willing to experiment and learn from their mistake, and can be flexible.
Service:
The service provision ought to be flawless, for after all, Mutual Fund is a service, and the only way the number of customers can be increased and the existing ones retained is by providing a higher level of service, thereby increasing customer satisfaction.
Trust / Transparency:
A high level of transparency has to be built into the system of processes and investments in Mutual Fund. This is of vital importance as the terms Transparency and Trust, in the case of Mutual Funds is synonyms. T rust in the firm would come only with transparency. And with Trust would come more business.
Fairness to Investors:
This, of course, is an offshoot of the previous point that we made. No business can survive unless it is fair to the customer. However, what is important here is that it has to be made evidently clear that the firm is actually being fair to its customers. Modesty doesnt help, and this has to be told to your customers so that they actually notice.
Utility:
35
The objective of the investment have to be always kept in mind while marketing Mutual Fund, for if there is a deviation, its utility is lost, or the customers remain unsatisfied.
Liquidity:
This has again and again highlighted, for it the basic premise that most investors invest in Mutual Fund only because of the high level of liquidity. There has to be a good market development for your issue, so that there is a ready market available for them.
COMPARATIVE STUDY OF MUTUAL FUNDS ON THE BASES OF ALPHA,
BETA AND STANDARD DEVIATION
ALPHA:-
36
Measures how much if any of the extra risk helped the fund outperform its corresponding benchmark. Using beta, alpha's computation compares the fund's performance to that of the benchmark's risk-adjusted returns and establishes if the fund's returns outperformed the market's, given the same amount of risk. For example, if a fund has an alpha of 1, it means that the fund outperformed the benchmark by 1%. Negative alphas are bad in that they indicate that the fund under performed for the amount of extra, fund-specific risk that the fund's investors undertook.
BETA :-
Beta is useful statistical measure, which determines the volatility, or risk, of a fund in comparison to that of its index or benchmark. A fund with a beta very close to 1 means the fund's performance closely matches the index or benchmark. A beta greater than 1 indicates greater volatility than the overall market, and a beta less than 1 indicates less volatility than the benchmark.
STANDARD DEVIATION :-
The standard deviation essentially reports a fund's volatility, which indicates the tendency of the returns to rise or fall drastically in a short period of time. A security that is volatile is also considered higher risk because its performance may change quickly in either direction at any moment. The standard deviation of a fund measures this risk by measuring the degree to which the fund fluctuates in relation to its mean return.
37
SENSEX RETURNS:
SENSEX MONTH RETURNS March April May June July -0.14 0.14 0.02 -0.17 0.11
CALCULATION OF RETURNS ON MUTUAL FUND SCHEMES:
BALANCE FUND:
TATA BALANCED FUND (GROWTH)
PRU ICICI FUND (GROWTH)
HDFC PRUDENCE FUND (GROWTH)
MAGNUM BALANCE FUND (GROWTH)
JM BALANCED FUND (GROWTH)
38
TATA BALANCED FUND
DATE
NAV
DATE
NAV
DATE
NAV
DATE
NAV
DATE
NAV RETUR N (%)
RETURN (%) 1-Mar 2-Mar 5-Mar 6-Mar 7-Mar 8-Mar 9-Mar 12-Mar 13-Mar 14-Mar 16-Mar 19-Mar 20-Mar 21-Mar 22-Mar 23-Mar 26-Mar 28-Mar -1.30% -3.23% 1.10% 1.10% -0.91% 2.36% -0.84% 0.80% 0.82% -1.96% -0.60% 1.33% 0.24% 0.93% 1.87% 0.31% -0.41% -1.17% 2-Apr 3-Apr 4-Apr 5-Apr 9-Apr 10-Apr 11-Apr 12-Apr 13-Apr 16-Apr 17-Apr 18-Apr 19-Apr 20-Apr 23-Apr 24-Apr 25-Apr 26-Arp
RETURN (%) -1.94 0.74% 1.06% 0.55% 1.64% 0.28% 0.50% -0.13% 1.52% 1.74% -0.47% 0.01% 0.06% 1.08% 0.10% 0.81% 0.16% -0.13% 3-May 4-May 7-May 8-May 9-May 10-May 11-May 14-May 15-May 16-May 17-May 18-May 21-May 22-May 23-May 24-May 25-May 28-May
RETURN (%) 1.16% -0.39% -0.23% -0.44% 0.07% 0.01% 0.26% 0.83% 0.08% 1.19% 0.83% -0.05% 0.59% 0.24% -0.28% -0.62% 0.55% 0.37% 1-Jun 4-Jun 5-Jun 6-Jun 7-Jun 8-Jun 11-Jun 12-Jun 13-Jun 14-Jun 15-Jun 18-Jun 19-Jun 20-Jun 21-Jun 22-Jun 25-Jun 26-Jun
RETURN (%) 0.09% -0.49% 0.62% -1.10% -0.09% -0.59% -0.22% -0.11% -0.45% 1.18% 0.04% -0.25% 1.11% 0.75% 0.70% -0.23% 0.31% 0.48% 2-Jul 3-Jul 4-Jul 5-Jul 6-Jul 9-Jul 10-Jul 11-Jul 12-Jul 13-Jul 16-Jul 17-Jul 19-Jul 20-Jul 23-Jul 24-Jul 25-Jul 26-Jul
0.34% 0.74% 0.17% -0.27% 0.52% 0.45% -0.39% 0.14% 1.17% 0.83% 0.17% -0.68% 0.83% 0.07% 0.94% 0.14% -0.75% -0.09%
27-Apr 30-Apr
-0.78% 0.61%
29-May 30-May 31-May
0.71% -0.47% 0.79% 5.20%
27-Jun 28-Jun 29-Jun TOTAL Avg.
-0.31% 0.29% 0.95% 2.68%
27-Jul 30-Jul 31-Jul TOTAL Avg.
2.66% 0.01% 1.67% 8.67%
TOTAL Avg. RETURNS
0.44%
TOTAL Avg.
-1.85%
TOTAL
- Avg. 0.092325 RETURNS 0.25%
0.02%
RETURNS
RETURNS
0.13%
RETURNS
0.41%
39
PRU ICICI BALANCED FUND
DATE
NAV
DATE
NAV
DATE
NAV
DATE
NAV
DATE
NAV RETUR N (%)
RETURN (%) 1-Mar 2-Mar 5-Mar 6-Mar 7-Mar 8-Mar 9-Mar 12-Mar 13-Mar 14-Mar 16-Mar 19-Mar 20-Mar 21-Mar 22-Mar 23-Mar 26-Mar 28-Mar 1.05% -1.66 -3.23% 1.44% -0.86% 2.54% -0.70% 0.34% 0.76% -2.11% 0.00% 1.11% 0.76% 0.70% 1.71% -0.15% -0.59% -1.31% 2-Apr 3-Apr 4-Apr 5-Apr 9-Apr 10-Apr 11-Apr 12-Apr 13-Apr 16-Apr 17-Apr 18-Apr 19-Apr 20-Apr 23-Apr 24-Apr 25-Apr 26-Apr 27-Apr 30-Apr
RETURN (%) -1.92% 0.80% 0.64% 0.39% 1.57% -0.12% 0.42% -0.47% 1.96% 1.20% -0.66% 0.38% -0.12% 1.24% 0.03% 0.66% 0.37% -0.23% -1.33% 0.03% 3-May 4-May 7-May 8-May 9-May 10-May 11-May 14-May 15-May 16-May 17-May 18-May 21-May 22-May 23-May 24-May 25-May 28-May 29-May 30-May 31-May
RETURN (%) 1.03% -0.74% -0.34% -0.60% 0.09% 0.09% 0.55% 1.15% 0.17% 0.79% 0.79% -0.17% 1.01% 0.06% -0.39% -0.58% 0.59% 0.83% 0.55% -0.79% 0.41% 1-Jun 4-Jun 5-Jun 6-Jun 7-Jun 8-Jun 11-Jun 12-Jun 13-Jun 14-Jun 15-Jun 18-Jun 19-Jun 20-Jun 21-Jun 22-Jun 25-Jun 26-Jun 27-Jun 28-Jun 29-Jun
RETURN (%) 0.16% -0.60% 0.55% -1.62% -0.06% -0.56% 0.03% -0.20% -0.59% 1.27% 0.03% -0.34% 0.92% 0.78% 0.22% -0.47% -0.06% 0.36% -0.17% 0.19% 0.85% 2-Jul 3-Jul 4-Jul 5-Jul 6-Jul 9-Jul 10-Jul 11-Jul 12-Jul 13-Jul 16-Jul 17-Jul 19-Jul 20-Jul 23-Jul 24-Jul 25-Jul 26-Jul 27-Jul 30-Jul 31-Jul
0.02% 0.90% -0.22% -0.08% 0.14% 0.57% -0.30% 0.30% 0.97% 0.59% -0.21% -0.16% 0.83% 0% 0.69% 0.21% -0.92% -0.18% -2.70% -0.24% 1.61%
TOTAL Avg. RETURNS
-0.20% TOTAL Avg. 0.25% RETURNS
4.84%
TOTAL Avg.
4.50%
TOTAL Avg.
0.69%
TOTAL Avg.
1.90%
0.24%
RETURNS
0.21%
RETURNS
0.03%
RETURNS
0.09%
40
HDFC PRUDENCE FUND

DATE NAV RETURN (%) 1-Mar 2-Mar 5-Mar 6-Mar 7-Mar 8-Mar 9-Mar 12-Mar 13-Mar 14-Mar 16-Mar 19-Mar 20-Mar 21-Mar 23-Mar 26-Mar 28-Mar DATE NAV RETURN (%) 2-Apr 3-Apr 4-Apr 5-Apr 9-Apr 10-Apr 11-Apr 12-Apr 13-Apr 16-Apr 17-Apr 18-Apr 19-Apr 20-Apr 23-Apr 24-Apr 25-Apr 26-Apr DATE NAV RETURN (%) 3-May 4-May 7-May 8-May 9-May 10-May 11-May 14-May 15-May 16-May 17-May 18-May 21-May 22-May 23-May 24-May 25-May 28-May DATE NAV RETURN (%) 1-Jun 4-Jun 5-Jun 6-Jun 7-Jun 8-Jun 11-Jun 12-Jun 13-Jun 14-Jun 15-Jun 18-Jun 19-Jun 20-Jun 21-Jun 22-Jun 25-Jun 26-Jun DATE NAV RETURN (%) 2-Jul 3-Jul 4-Jul 5-Jul 6-Jul 9-Jul 10-Jul 11-Jul 12-Jul 13-Jul 16-Jul 17-Jul 19-Jul 20-Jul 23-Jul 24-Jul 25-Jul 26-Jul
0.15% -1.05% -3.39% 0.09% -1.34% 1.91%

-0.19%
-1.50% 0.52% 0.75% 0.61% 1.49% 0.55% 0.83%

-0.47%
0.79% -0.57% -0.12% -0.59% 0.22%

-0.01%
0.71% -0.57% 0.72% -0.88% -0.11%

-0.36%
0.72% 0.67% -0.51% -0.34% 0.28% 0.75%

-0.24% -0.06%
0.48% 1.37% 0.30% 0.62% 0.11%

-0.30%
0.15%
-0.66% -0.15%
0.66% 0.29%
-1.42% -0.14%
0.97% 1.50%
-0.73%
1.17% 0.28% 0.66%

-0.65%
1.17% 0.16%
-0.24%
0.68% 0.72% 0.98%

-0.24% -0.31%
0.09% 0.01% 0.45% 0.13% 0.24% 0.55%

-0.26%
0.57% 0.24% 0.01%

-0.85%
0.69% 1.12% 0.41%

-0.32%
1.02% 0.13% 0.57%

-0.07% -0.42%
-1.18%
0.37% 1.21%
0.21% 0.37%
0.19%
27-Apr 30-Apr
-0.41%
0.33%
-0.42%
27-Jun 28-Jun 29-Jun TOTAL Avg. RETURNS
0.11%
-0.09%
27-Jul 30-Jul 31-Jul TOTAL Avg. RETURNS
-1.49% -0.04%
0.81%
0.88% 4.64% 0.22%
0.71% 3.15% 0.15%
1.73% 4.35% 0.21%
TOTAL Avg. RETURNS
-3.78% -0.22%
TOTAL Avg. RETURNS
6.13% 0.31%
TOTAL Avg. RETURNS
41
MAGNUM BALANCE FUND

DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV RETUR N (%) 2-Jul 3-Jul 4-Jul 5-Jul 6-Jul 9-Jul 10-Jul 11-Jul 12-Jul 13-Jul 16-Jul 17-Jul 19-Jul 20-Jul 23-Jul 24-Jul 25-Jul 26-Jul 27-Jul 30-Jul 0.65% 0.86% 0.08% -0.36% 0.13% 0.72% -0.13% 0.23% 0.72% 0.56% 0.53% -0.53% 0.63% -0.08% 0.28% -0.13% -0.35% 0.08% -2.54% 0.31%
RETURN (%) 1-Mar 2-Mar 5-Mar 6-Mar 7-Mar 8-Mar 9-Mar 12-Mar 13-Mar 14-Mar 16-Mar 19-Mar 20-Mar 21-Mar 23-Mar 26-Mar 28-Mar 0.89% -1.38% -2.64% 1.01% -0.60% 2.09% -0.71% 0.21% 0.72% -1.96% -0.70% 1.46% 0.57% 0.63% 1.42% -0.06% -0.50% -1.12% 2-Apr 3-Apr 4-Apr 5-Apr 9-Apr 10-Apr 11-Apr 12-Apr 13-Apr 16-Apr 17-Apr 18-Apr 19-Apr 20-Apr 23-Apr 24-Apr 25-Apr 26-Apr 27-Apr 30-Apr
RETURN (%) -2.00% 0.52% 0.88% 0.39% 1.34% 0.32% 0.35% -0.56% 1.41% 1.65% -0.57% 0.60% 0.03% 1.11% 0.03% 1.16% 0.86% -0.39% -1.16% 0.51% 3-May 4-May 7-May 8-May 9-May 10-May 11-May 14-May 15-May 16-May 17-May 18-May 21-May 22-May 23-May 24-May 25-May 28-May 29-May 30-May
RETURN (%) 0.45% -0.28% -0.31% -0.78% 0.31% 0.14% 0.48% 0.75% -0.08% 1.36% 0.60% 0.33% 0.62% 0.00% -0.30% -0.11% 0.54% 0.27% 0.99% -0.27% 1-Jun 4-Jun 5-Jun 6-Jun 7-Jun 8-Jun 11-Jun 12-Jun 13-Jun 14-Jun 15-Jun 18-Jun 19-Jun 20-Jun 21-Jun 22-Jun 25-Jun 26-Jun 27-Jun 28-Jun
RETURN (%) 0.32% -0.24% 0.05% -1.01% -0.05% -0.94% -0.35% -0.44% -0.33% 0.90% 0.24% 0.00% 1.27% 0.83% 0.37% -0.29% -0.16% 0.35% -0.11% 0.26%
31-May TOTAL Avg. RETURNS -0.04% -0.67% TOTAL Avg. RETURNS 0.32% 6.48% TOTAL Avg. RETURNS
0.19% 4.90%
29-Jun TOTAL Avg.
0.92% 1.59%
31-Jul TOTAL Avg.
1.34% 3.00%
0.23%
RETURNS
0.08%
RETURNS
0.14%
42
JM BALANCED FUND
DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV RETUR N (%)
RETURN (%)
RETURN (%) -
RETURN (%)
RETURN (%)
1-Mar 2-Mar 5-Mar 6-Mar 7-Mar
0.36% -1.04% -2.75% 0.66% -1.68%
2-Apr 3-Apr 4-Apr 5-Apr 9-Apr
1.92% 0.70% 0.37% 0.78% 1.28% -
3-May 4-May 7-May 8-May 9-May
1.57% -0.88% -0.46% -0.30% 0.00%
1-Jun 4-Jun 5-Jun 6-Jun 7-Jun
0.04% -0.14% -0.04% -1.23% -0.67%
2-Jul 3-Jul 4-Jul 5-Jul 6-Jul
1.08% 1.50% 1.04% -0.58% 1.48%
8-Mar 9-Mar 12-Mar 13-Mar 14-Mar
3.28% -1.06% 1.07% 0.83% -1.37%
0.05% 0.72% 0.18% 2.37% 2.67% -
10-May 11-May 14-May 15-May 16-May
0.30% 0.13% 0.51% -0.13% 1.18%
-0.90% -0.28% -0.75% -0.42% 1.39%
0.06% 0.57% 0.51% 1.22% 0.57%
16-Mar 19-Mar
-0.51% 1.30%
17-Apr 18-Apr
0.94% 0.26% -
17-May 18-May
0.79% -0.08%
15-Jun 18-Jun
0.74% -0.75%
16-Jul 17-Jul
0.57% -0.39%
20-Mar 21-Mar
0.69% 0.37%
19-Apr 20-Apr
0.30% 0.90% -
21-May 22-May
0.70% 0.70%
19-Jun 20-Jun
0.88% 0.67%
19-Jul 20-Jul
0.72% -0.26%
22-Mar 23-Mar
1.55% 0.04%
23-Apr 24-Apr
0.51% 0.50%
23-May 24-May
-0.61% -0.70%
21-Jun 22-Jun
0.65% 0.41%
23-Jul 24-Jul
1.14% -0.24%
26-Mar
-0.45%
25-Apr
0.85% -
25-May
0.12%
25-Jun
-0.34%
25-Jul
-1.11%
28-Mar
-1.62%
26-Apr
0.30% -
28-May
0.87%
26-Jun
0.35%
26-Jul
0.95%
27-Apr 30-Apr
1.02% 0.69%
0.66% -0.90% 1.69% 5.16%
0.59% 1.11% -0.16% 1.15%
-3.04% 1.35% 1.35% 8.49%
TOTAL Avg. RETURNS
-0.33% TOTAL Avg. -0.02% RETURNS
7.23%
TOTAL Avg.
0.36%
RETURNS
0.25%
RETURNS
0.05%
RETURNS
0.40%
43
Sense x Return s
(Sm-Sm)*
(Sm-mean)*
(Mm-mean)*
Month
tata bal
(Sm-mean)
(Mm-mean)
(Mm-Mm)
(Sm-mean)
(Mm-mean)
March April May June July TOTAL mean
-0.14 0.14 0.02 -0.17 0.11 -0.04 -0.008
0.02 -0.09 0.25 0.13 0.41 0.72 0.144
-0.132 0.148 0.028 -0.162 0.118
-0.1240 -0.2340 0.1060 -0.0140 0.2660
0.016368 -0.034632 0.002968 0.002268 0.031388 0.01836
0.0004 0.0081 0.0625 0.0169 0.1681 0.256
0.015376 0.054756 0.011236 0.000196 0.070756 0.030525
BET A
0.01836/ 0.08028 0.2286996
ALPHA
0.1458296
Standard Deviation 0.030525
PRU Month sensex returns ICICI (Sm-mean) (Tm-mean) (Sm-Sm)*(Tm-Tm) (Tm-mean)*(tm-mean) (Tm-mean)*(tm-mean)
March April May June July TOTA L MEAN
-0.14 0.14 0.02 -0.17 0.11
0.25 0.24 0.21 0.03 0.09
-0.132 0.148 0.028 -0.162 0.118
0.086 0.076 0.046 -0.134 -0.074
-0.011352 0.011248 0.001288 0.021708 -0.008732
0.007396 0.005776 0.002116 0.017956 0.005476
0.007396 0.005776 0.002116 0.017956 0.005476
-0.04 -0.008
0.82 0.164
0.01416
BET A
0.01416/ 0.08028 0.1654111
ALPH A
0.174 0.006
Standard Deviation
44
MAG Month sensex returns BAL (Sm-mean)
(Mmmean) (Sm-Sm)*(Tm-Tm) (Tm-mean)*(tm-mean)
March April May June July TOTAL MEAN
-0.14 0.14 0.02 -0.17 0.11
-0.04 0.32 0.23 0.08 0.14
-0.132 0.148 0.028 -0.162 0.118
-0.186 0.174 0.084 -0.066 -0.006
-0.186 0.174 0.084 -0.066 -0.006
0.034596 0.030276 0.007056 0.004356 0.013924
-0.04 -0.008
0.73 0.146
0.012
BETA 0.012/ 0.08028 0.149476831
ALPHA Standard Deviation
0.1522422 0.0137
sense x return s -0.14 0.14 0.02 -0.17 0.11
HDFC
(Sm-
(Mm-
(Sm-Sm)*(Tm-
(Tm-mean)*(tm-
Month March April May June July
Pru -0.22 0.31 0.22 0.15 0.21
mean) -0.132 0.148 0.028 -0.162 0.118
mean) -0.354 0.176 0.086 0.016 0.076
Tm) 0.046728 0.026048 0.002408 -0.002592 0.008968
mean) 0.125316 0.030976 0.007396 0.000256 0.005776
TOTAL
-0.04
0.67
0.08156
45
MEA N
-0.008
0.134
BETA 0.08156/ 0.08028 1.015944195
0.142127554 0.0524
(MmMonth March April May June July TOTAL MEAN sensex returns -0.14 0.14 0.02 -0.17 0.11 -0.04 -0.008 JM BAL -0.02 0.36 0.25 0.05 0.4 1.04 0.208 (Sm-mean) -0.132 0.148 0.028 -0.162 0.118 mean) -0.228 0.152 0.042 -0.158 0.192 (Sm-Sm)*(Tm-Tm) 0.030096 0.022496 0.001176 0.025596 0.022656 0.10202 (Tm-mean)*(tm-mean) 0.017424 0.021904 0.000784 0.026244 0.013924
BET A
0.10202/ 0.08028
0.218166418
1.270802192
0.0185
SCHEMES
TATA PRU ICICI HDFC
BETA
0.2286996 0.174 1.314365517
ALPHA
0.146 0.165 0.142
S.D .
0.031 0.006 0.0524
MAG BAL JM BAL
0.132383266 1.24
0.152 0.218
0.0137 0.0185
INTERPRETATION:
BETA:
This indicates that HDFC Schemes in balance fund has given return with par with SENSEX. The highest volatility shown in balance fund is by JM Morgan Balance fund. And the least volatility is been shown by Magnum Balance Fund.
Alpha:
46
Alpha of JM Morgan is the higgest, this indicate that with the given risk the fund has given good return. It indicate that JM Morgan strategy is that, it takes comparatively more risk but at the same time it gives good return. The less return is given by TATA Balance Fund.
Standard Deviation:
Standard Deviation indicate volatility in the performance. From the Balance Fund it indicates that HDFC has high volatility in its portfolio.
Investors who do not want to take much risk normally go for Balanced Funds.in Balance Fund also investors who are risk averse can go for Pru ICICI as has less beta that is it is less volatile but at the same time it is giving good returns.
47
EQUITY FUND:
DSP ML Equity Fund
Reliance Vision Fund
Magnum Multicap Fund
Birla Midcap Fund
Franklin India Opportunities Fund
48
EQUITY DIVERSIFIED
DSP ML Equity Fund

DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV RETUR N (%)
RETURN (%)
RETURN (%) -
RETURN (%)
RETURN (%)
1-Mar 2-Mar 5-Mar 6-Mar 7-Mar 8-Mar 9-Mar
1.80% -1.69% -4.45% 1.26% -1.00% 2.34% -0.52%
2-Apr 3-Apr 4-Apr 5-Apr 9-Apr 10-Apr 11-Apr
1.63% 0.76% 1.23% 0.87% 1.81% 0.24% 0.32% -
3-May 4-May 7-May 8-May 9-May 10-May 11-May
1.39% -0.57% -0.09% -0.74% 0.54% 0.57% 0.86%
1-Jun 4-Jun 5-Jun 6-Jun 7-Jun 8-Jun 11-Jun
0.81% -0.45% 0.59% -1.96% -0.20% -0.75% -0.12%
2-Jul 3-Jul 4-Jul 5-Jul 6-Jul 9-Jul 10-Jul
1.53% 0.86% 0.14% -0.41% 0.26% 0.74% -0.05%
12-Mar 13-Mar 14-Mar
0.57% 0.80% -1.98%
12-Apr 13-Apr 16-Apr
0.77% 1.40% 2.10% -
2.00% 0.56% 1.53%
12-Jun 13-Jun 14-Jun
0.31% -0.58% 0.92%
11-Jul 12-Jul 13-Jul
0.49% 1.21% 0.44%
16-Mar
-0.38%
17-Apr
0.10%
17-May
1.01%
15-Jun
0.14%
16-Jul
0.07%
19-Mar 20-Mar 21-Mar 22-Mar 23-Mar 26-Mar 1.27% 0.72% 0.65% 1.50% -0.19% -0.70% 18-Apr 19-Apr 20-Apr 23-Apr 24-Apr 25-Apr 0.23% 0.12% 1.53% 0.13% 1.31% 0.53% 28-Mar -1.31% 26-Apr 0.07% 27-Apr 30-Apr 1.48% 0.96% 29-May 30-May 31-May TOTAL Avg. RETURNS -0.07% -1.31% TOTAL Avg. RETURNS 0.45% 9.03% TOTAL Avg. RETURNS 0.46% 0.97% -0.54% 0.72% 9.75% 27-Jun 28-Jun 29-Jun TOTAL Avg. RETURNS 0.14% -0.34% 0.44% 1.01% 2.87% 27-Jul 30-Jul 31-Jul TOTAL Avg. RETURNS 0.18% -3.88% 0.79% 1.46% 3.83% 28-May 0.94% 26-Jun 0.55% 26-Jul 0.54% 18-May 21-May 22-May 23-May 24-May 25-May 0.10% 1.06% 0.27% -0.73% -0.93% 0.83% 18-Jun 19-Jun 20-Jun 21-Jun 22-Jun 25-Jun -0.58% 1.18% 1.12% 1.19% -0.33% -0.08% 17-Jul 19-Jul 20-Jul 23-Jul 24-Jul 25-Jul -0.93% 0.69% 0.01% 0.78% -0.23% -0.68%
49
Reliance Vision Fund - (G)

DATE NAV RETUR N (%) DATE NAV DATE NAV DATE NAV DATE NAV RETUR N (%)
RETURN (%) -
RETURN (%)
RETURN (%)
1.25% -2.32% -4.74% 1.31% -0.97% 3.96% -1.29%
2-Apr 3-Apr 4-Apr 5-Apr 9-Apr 10-Apr 11-Apr
2.36% 1.09% 0.84% 0.87% 2.30% 0.48% 0.15% -
1.94% -0.21% -0.34% -0.78% 0.42% 0.01% 0.80%
1-Jun 4-Jun 5-Jun 6-Jun 7-Jun 8-Jun 11-Jun
0.54% -0.93% -0.18% -1.18% -0.12% -0.70% 0.22%
2-Jul 3-Jul 4-Jul 5-Jul 6-Jul 9-Jul 10-Jul
0.85% 0.50% 0.62% -0.18% 0.70% 1.19% -0.55%
0.17% 1.10% -2.52%
0.06% 1.98% 1.28% -
1.00% 0.21% 1.04%
-0.27% -0.55% 1.29%
11-Jul 12-Jul 13-Jul
-0.19% 1.78% 0.39%
16-Mar 19-Mar 20-Mar 21-Mar 22-Mar 23-Mar
-0.66% 1.52% 0.77% 0.67% 2.14% -0.03%
17-Apr 18-Apr 19-Apr 20-Apr 23-Apr 24-Apr
0.83% 0.35% 0.11% 1.32% 0.23% 1.02%
17-May 18-May 21-May 22-May 23-May 24-May
1.34% -0.26% 0.63% 0.74% -0.84% 0.31%
15-Jun 18-Jun 19-Jun 20-Jun 21-Jun 22-Jun
0.13% 0.24% 1.68% 1.27% 0.45% 0.07%
16-Jul 17-Jul 19-Jul 20-Jul 23-Jul 24-Jul
0.39% -0.71% 1.49% 0.02% 0.49% 0.02%
26-Mar 28-Mar
-1.11% -1.52%
25-Apr 26-Apr
0.68% 0.69% -
25-May 28-May
0.32% 0.72%
25-Jun 26-Jun
0.39% 0.18%
25-Jul 26-Jul
-0.79% 0.36%
27-Apr 30-Apr
1.41% 1.00%
0.96% -0.52% 1.02% 8.51%
-0.27% 0.70% 0.71% 3.67%
-2.42% 0.19% 1.54% 5.69%
TOTAL Avg. RETURNS
-2.27%
TOTAL Avg.
9.73%
TOTAL Avg.
-0.13%
RETURNS
0.49%
RETURNS
0.41%
RETURNS
0.17%
RETURNS
0.27%
50
Magnum Multicap Fund (G)

DATE NAV RETUR RETUR N (%) 2-Apr 3-Apr 4-Apr 5-Apr 9-Apr 10-Apr 11-Apr 12-Apr 13-Apr 16-Apr 17-Apr 18-Apr 19-Apr 20-Apr 23-Apr DATE NAV DATE NAV RETUR DATE NAV RETUR DATE NAV RETUR
N (%) 1-Mar 2-Mar 5-Mar 6-Mar 7-Mar 8-Mar 9-Mar 12-Mar 13-Mar 14-Mar 16-Mar 19-Mar 20-Mar 21-Mar 22-Mar
N (%) 3-May 4-May 7-May 8-May 9-May 10-May 11-May 14-May 15-May 16-May 17-May 18-May 21-May 22-May 23-May
N (%) 1-Jun 4-Jun 5-Jun 6-Jun 7-Jun 8-Jun 11-Jun 12-Jun 13-Jun 14-Jun 15-Jun 18-Jun 19-Jun 20-Jun 21-Jun
N (%) 2-Jul 3-Jul 4-Jul 5-Jul 6-Jul 9-Jul 10-Jul 11-Jul 12-Jul 13-Jul 16-Jul 17-Jul 19-Jul 20-Jul 23-Jul
0.62% -1.65% -4.13% 1.46% -1.15% 3.50% -1.20% 0.57% 0.92% -2.11% -1.15% 1.45% 1.14% 1.13% 2.24%
-2.65% 0.64% 1.07% 1.20% 1.88% 0.20% 0.20% -0.82% 1.58% 2.56% -0.85% 0.20% -0.73% 1.13% 0.40%
1.04% -0.38% -0.84% -1.30% -0.20% -0.59% 0.26% 1.72% 0.00% 1.23% 0.64% 0.00% 0.89% 0.25% -0.50%
0.81% -1.05% 0.44% -1.75% -0.57%

-0.83% -0.32% -0.19% -0.58%
1.11% 0.86% -0.06% 0.18% 0.91% 0.72%

-0.36% -0.12%
1.38% 1.12%
-0.41% -0.70%
1.37% 0.39%
-0.32%
1.22% 1.20% 0.63%
1.12% 0.64% 0.87%
0.14% -0.68% -1.24%
2.04% 0.84% -0.26% -1.47% 0.32%
-0.89% 0.45% 1.72% 0.69% -1.61% 1.07% 3.65%
22-Jun 25-Jun 26-Jun 27-Jun 28-Jun 29-Jun TOTAL Avg.
-0.44% -0.06%
24-Jul 25-Jul 26-Jul 27-Jul 30-Jul 31-Jul TOTAL Avg.
0.12%
-0.86%
0.44%
-0.75%
0.70%
-3.40%
0.19% 1.25% 1.08%
0.00% 2.09% 5.91%
TOTAL Avg. RETURN S
-0.14%
TOTAL Avg.
7.48%
TOTAL Avg.
-0.01%
RETURN S
0.37%
RETURN S
0.17%
RETURN S
0.05%
RETURN S
0.28%
51
Birla Midcap Fund (G)

DATE NAV RETURN (%) 1-Mar 2-Mar 5-Mar 6-Mar 7-Mar 8-Mar 9-Mar 12-Mar 13-Mar 14-Mar 16-Mar 19-Mar DATE NAV RETURN (%) 2-Apr 3-Apr 4-Apr 5-Apr 9-Apr 10-Apr 11-Apr 12-Apr 13-Apr 16-Apr 17-Apr 18-Apr DATE NAV RETURN (%) 3-May 4-May 7-May 8-May 9-May 10-May 11-May 14-May 15-May 16-May 17-May 18-May DATE NAV RETURN (%) 1-Jun 4-Jun 5-Jun 6-Jun 7-Jun 8-Jun 11-Jun 12-Jun 13-Jun 14-Jun 15-Jun 18-Jun DATE NAV RETURN (%) 2-Jul 3-Jul 4-Jul 5-Jul 6-Jul 9-Jul 10-Jul 11-Jul 12-Jul 13-Jul 16-Jul 17-Jul
0.21% -0.96% -4.75% 0.29% -1.49% 2.37%

-0.61%
-1.48% 0.52% 1.05% 0.64% 1.72% 1.14% 0.84% -0.26% 1.29% 1.66% 0.00% 0.36%
0.51% 0.43% -0.29% -0.38% 0.24% 0.59% 1.33% 1.75% 0.37% 1.64% 0.27% 0.11%
-0.08% -0.70% 0.48% -0.84% -0.18%

-0.49% -0.18% -0.61% -0.49%
1.24% 0.66% 0.98% -0.01% 0.30% 1.00%

-0.63%
0.50% 0.87%
-1.67% -0.57%
0.64% 1.47% 1.40% 1.10%

-0.76%
1.19% 0.44% 0.07%
0.78%
0.82% 0.39% 1.29% 0.32%

-0.52%
19-Apr 20-Apr 23-Apr 24-Apr 25-Apr 26-Apr 27-Apr 30-Apr
0.27% 0.49% -0.16% 1.66% 0.77% -0.32% -0.68% 0.88%
21-May 22-May 23-May 24-May 25-May 28-May 29-May 30-May 31-May
1.31% 0.16% -0.48% -0.70% 0.47% 1.24% 0.35% -0.41% 1.11% 9.62% 0.46%
19-Jun 20-Jun 21-Jun 22-Jun 25-Jun 26-Jun 27-Jun 28-Jun 29-Jun TOTAL Avg. RETURNS
1.03% 1.69% 0.62%

-0.40%
19-Jul 20-Jul 23-Jul 24-Jul 25-Jul 26-Jul 27-Jul 30-Jul 31-Jul TOTAL Avg. RETURNS
0.91%
-0.35%
0.55%
-0.25% -0.85%
0.21% 0.26% 0.00% 0.66% 0.95% 3.63% 0.17%
-1.44%
1.02%
-2.74%
0.60% 1.44% 7.72% 0.37%
TOTAL Avg. RETURNS
-4.17% -0.23%
TOTAL Avg. RETURNS
10.39% 0.52%
TOTAL Avg. RETURNS
52
Franklin India Opportunities Fund - (G)

DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV RETUR N (%) 2-Jul 3-Jul 4-Jul 5-Jul 6-Jul 9-Jul 10-Jul 11-Jul 12-Jul 13-Jul 16-Jul 17-Jul 19-Jul 20-Jul 23-Jul 24-Jul 25-Jul 0.84% 1.25% 0.13% -0.56% 0.57% 0.43% -0.12% 0.33% 1.67% 0.80% 0.63% -1.56% 0.32% -0.34% 1.04% -0.46% -0.64%
RETURN (%) 1-Mar 2-Mar 5-Mar 6-Mar 7-Mar 8-Mar 9-Mar 12-Mar 13-Mar 14-Mar 16-Mar 19-Mar 20-Mar 21-Mar 22-Mar 23-Mar 26-Mar 0.08% -1.25% -4.53% 0.98% -2.63% 4.33% -0.86% 1.74% 1.41% -1.65% -0.52% 0.95% 1.07% 1.02% 1.17% 0.21% -0.74% 2-Apr 3-Apr 4-Apr 5-Apr 9-Apr 10-Apr 11-Apr 12-Apr 13-Apr 16-Apr 17-Apr 18-Apr 19-Apr 20-Apr 23-Apr 24-Apr 25-Apr
RETURN (%) -1.31% 0.35% -0.17% 0.86% 2.13% 1.23% 0.20% 0.70% 1.43% 1.56% -1.12% 0.33% -0.16% 1.37% -0.09% 0.65% 1.65% 3-May 4-May 7-May 8-May 9-May 10-May 11-May 14-May 15-May 16-May 17-May 18-May 21-May 22-May 23-May 24-May 25-May
RETURN (%) 0.58% -0.22% -0.55% -0.78% 0.27% 0.03% 0.69% 1.30% 0.01% 1.72% 1.03% -0.34% 1.08% 0.67% -0.79% 0.05% 0.18% 1-Jun 4-Jun 5-Jun 6-Jun 7-Jun 8-Jun 11-Jun 12-Jun 13-Jun 14-Jun 15-Jun 18-Jun 19-Jun 20-Jun 21-Jun 22-Jun 25-Jun
RETURN (%) 0.22% -1.01% 0.27% -2.11% -0.59% -0.29% -0.09% -0.29% -0.25% 2.07% -0.18% -0.01% 1.24% 1.09% 0.34% 0.55% 0.47%
28-Mar
-1.37%
0.12% -1.42% -0.04%
28-May 29-May 30-May 31-May
1.92% 1.06% -0.56% 0.64% 7.99%
26-Jun 27-Jun 28-Jun 29-Jun TOTAL Avg.
0.88% -0.53% 0.74% 0.37% 2.89%
26-Jul 27-Jul 30-Jul 31-Jul TOTAL Avg.
1.04% -4.39% 0.54% 1.68% 3.20%
TOTAL Avg. RETURNS
-0.59% TOTAL Avg. -0.03% RETURNS
8.27%
TOTAL Avg.
0.41%
RETURNS
0.73%
RETURNS
0.14%
RETURNS
0.15%
53
EQUITY DIVERSIFIED
DSP (Sm(Sm-mean)*(Sm(Tmmean)*(tmmean) 0.039864 0.032264 0.006384 0.014904 -0.006136 0.017424 0.021904 0.000784 0.026244 0.013924 mean) 0.091204 0.047524 0.051984 0.008464 0.002704
sensex Month March April May June July returns -0.14 0.14 0.02 -0.17 0.11
ML Eq -0.07 0.45 0.46 0.14 0.18
(Smmean) -0.132 0.148 0.028 -0.162 0.118
(Dmmean) -0.302 0.218 0.228 -0.092 -0.052
Sm)*(TmTm)
TOTAL MEAN
-0.04 -0.008
1.16 0.232
0.08728
BET A
0.08728/ 0.08028 1.087194818
0.241 0.036
sense x return s -0.14 0.14 0.02 -0.17 0.11
(Sm-
(Rm-
(Sm-Sm)*(Tm-
(Tm-mean)*(tm-
Month March April May June July
Rel VIS -0.13 0.49 0.41 0.17 0.27
mean) -0.132 0.148 0.028 -0.162 0.118
mean) -0.372 0.248 0.168 -0.072 0.028
Tm) 0.049104 0.036704 0.004704 0.011664 0.003304
mean) 0.138384 0.061504 0.028224 0.005184 0.000784
54
TOTAL MEAN
-0.04 -0.008
1.21 0.242
0.10548
BETA 0.10548/0.08028 1.313901345
0.2525 0.057
(MmMonth sensex returns Mag Mul (Sm-mean) mean) (Sm-Sm)*(Tm-Tm) (Tm-mean)*(tm-mean)
March April May June July
-0.14 0.14 0.02 -0.17 0.11
-0.01 0.37 0.17 0.05 0.28
-0.132 0.148 0.028 -0.162 0.118
-0.182 0.198 -0.002 -0.122 0.108
0.024024 0.029304 -0.000056 0.019764 0.012744
0.033124 0.039204 0.00 0.014884 0.011664 0.016095686
TOTAL MEAN
-0.04 -0.008
0.86 0.172
0.18466
BETA 0.08578/ 0.08028
ALPHA
0.181
1.068510214
Standard Deviation
0.0161
sense x return s -0.14
Birla
(Sm-
(Bm-
(Sm-Sm)*(Tm-
(Tm-mean)*(tm-
Month March
Mid -0.23
mean) -0.132
mean) -0.488
Tm) 0.064416
mean) 0.017424
55
April May June July TOTAL MEAN
0.14 0.02 -0.17 0.11
0.52 0.46 0.17 0.37
0.148 0.028 -0.162 0.118
0.262 0.202 -0.088 0.112
0.038776 0.005656 0.014256 0.013216
0.021904 0.000784 0.026244 0.013924
-0.04 -0.008
1.29 0.258
0.13632
BETA 0.13632/0.08028 1.698056801

sensex
Fran Ind

(Sm(Bm(Sm-Sm)*(Tm-
0.272 0.0952
(Tm-mean)*(tm-
Month March April May June July TOTA L MEAN
returns -0.14 0.14 0.02 -0.17 0.11
Opp
mean) -0.132 0.148 0.028 -0.162 0.118
mean) -0.31 0.13 0.45 -0.14 -0.13
Tm) 0.04092 0.01924 0.0126 0.02268 -0.01534
mean) 0.0961 0.0169 0.2025 0.0196 0.0169
-0.03 0.41 0.73 0.14 0.15
-0.04 -0.008
1.4 0.28
0.0801
BETA 0.0801/0.08028 0.997757848
0.288 0.087
SCHEMES BETA ALPHA

DSP ML Eq 1.09 0.241
S.D .
0.03 6 0.05 7 0.01 6 0.09 5
Rel VIS
1.31
0.252
Mag Mul
1.07
0.181
Birla Mid Fran Ind Opp
1.698
0.272
0.998
0.288
0.08 7
56
INTERPRETATION
BETA:
Beta of Birla Midcap Equity Scheme is the highest, this indicate that the risk profile of Birla Mutual Fund for Equity schemes is more. In equity schemes all the above mention schemes have shown volatility as compared to SENSEX.
But Franklin India Opportunies Fund has shown less volatility as compared to other Equity Mutual Fund.
ALPHA:
The highest return is given by Franklin India Opportunies Fund. But the risk taken by this fund is less. Magnum Multicap fund has shown volatility at par with SENSEX but among the Equity Schemes this fund has given less returns.
STANDARD DEVIATION:
Birla and Franklin Equity Mutual Fund has shown more deviation in its Movement. Therefore these fund has shown more volatility in its performance.
For investors who invest in Equity Fund for getting more returns as compared to other schemes, thereofore in order to get more returns they have to take more risks. Investors who donot want to take risk but want to get more returns can go for Franklin India Opportunies Fund
GILT FUND:
DSP ML G-SEC FUND
57
MAGNUM GILT FUND(SHORT TERM)
HDFC GILT LONG TERM PLAN
PRU ICICI GILT FUND(INVESTMENT)
BIRLA GILT PLUS REGULAR FUND
DSP ML G-Sec Fund A
DATE
NAV
DATE
NAV
DATE
NAV
DATE
NAV
DATE
NAV RETUR N (%) 2-Jul 3-Jul 4-Jul 5-Jul 6-Jul 9-Jul 0.64% 0.42% 0.15% -0.03% 0.40% -0.05% 0.03% 0.06% 0.01% 0.19% 0.45%
RETURN (%) 1-Mar 2-Mar 5-Mar 6-Mar 7-Mar 8-Mar 9-Mar 12-Mar 13-Mar 14-Mar 16-Mar 0.26% -0.05% 0.02% -0.01% 0.04% -0.21% 0.05% 0.35% -0.11% -0.06% -0.29% 2-Apr 3-Apr 4-Apr 5-Apr 9-Apr 10-Apr 11-Apr 12-Apr 13-Apr 16-Apr 17-Apr
RETURN (%) -0.95% 0.08% -0.12% 0.48% 0.33% -0.01% -0.04% -0.18% -0.05% 0.08% 0.20% 3-May 4-May 7-May 8-May 9-May 10-May 11-May 14-May 15-May 16-May 17-May
RETURN (%) 0.13% -0.05% 0.14 0.20% 0.17% -0.23% -0.22% 0.13% 0.18% 0.08% -0.03% 1-Jun 4-Jun 5-Jun 6-Jun 7-Jun 8-Jun 11-Jun 12-Jun 13-Jun 14-Jun 15-Jun
RETURN (%) 0.09% 0.04% -0.10% -0.20% 0.16% -0.18% -0.50% 0.01% -0.10% 0.32% 0.29%
0.06% -0.25% 0.21% 0.51% 0.04% -0.20% 0.12%
18-Apr 19-Apr 20-Apr 23-Apr 24-Apr 25-Apr 26-Apr 27-Apr 30-Apr
0.01% 0.07% -0.17% 0.60% 0.09% -0.36% -0.37% -0.05%
18-May 21-May 22-May 23-May 24-May 25-May 28-May 29-May 30-May 31-May
-0.16% 0.36% 0.02% -0.14% -0.08% 0.15% 0.40% -0.09% -0.02% 0.18% 14.98%
18-Jun 19-Jun 20-Jun 21-Jun 22-Jun 25-Jun 26-Jun 27-Jun 28-Jun 29-Jun TOTAL Avg.
0.35% -0.10% -0.10% 0.00% -0.01% 0.30% -0.22% -0.14% 0.25% 0.05% 0.21%
17-Jul 19-Jul 20-Jul 23-Jul 24-Jul 25-Jul 26-Jul 27-Jul 30-Jul 31-Jul TOTAL Avg.
0.21% 0.12% 0.37% -0.09% -0.19% 0.06% -0.15% 0.30% -0.58%
TOTAL Avg. RETURNS
0.48%
TOTAL Avg.
-0.36%
TOTAL Avg.
2.32%
0.03%
RETURNS
-0.02%
RETURNS
0.71%
RETURNS
0.01%
RETURNS
0.12%
58
Magnum Gilt Fund - Short Term

DATE NAV RETURN (%) 1-Mar 2-Mar 5-Mar 6-Mar 7-Mar 8-Mar 9-Mar 12-Mar 13-Mar 14-Mar 16-Mar 19-Mar 0.00% 0.02% 0.06% 0.02% 0.02% 0.02% 0.02% 0.11% 0.02% 0.02% 0.04% 0.07% 2-Apr 3-Apr 4-Apr 5-Apr 9-Apr 10-Apr 11-Apr 12-Apr 13-Apr 16-Apr 17-Apr 18-Apr DATE NAV RETURN (%) 0.07% 0.02% 0.02% 0.02% 0.08% 0.02% 0.02% 0.02% 0.02% 0.07% 0.02% 0.02% 3-May 4-May 7-May 8-May 9-May 10-May 11-May 14-May 15-May 16-May 17-May 18-May DATE NAV RETURN (%) 0.07% 0.02% 0.07% 0.02% 0.02% 0.02% 0.02% 0.07% 0.02% 0.02% 0.04% 0.04% 1-Jun 4-Jun 5-Jun 6-Jun 7-Jun 8-Jun 11-Jun 12-Jun 13-Jun 14-Jun 15-Jun 18-Jun DATE NAV RETURN (%) 0.07% 0.09% 0.03% 0.03% 0.03% 0.03% 0.08% 0.03% 0.03% 0.03% 0.03% 0.08% 2-Jul 3-Jul 4-Jul 5-Jul 6-Jul 9-Jul 10-Jul 11-Jul 12-Jul 13-Jul 16-Jul 17-Jul DATE NAV RETURN (%) 0.07% 0.07% 0.10% 0.18% 0.16% 0.32% 0.02% 0.02% 0.02% 0.02% 0.07% 0.02%
0.02% 0.02% 0.02% 0.02% 0.07% 0.04%
0.02% 0.03% 0.08% 0.02% 0.02% 0.02% 0.02% 0.07%
21-May 22-May 23-May 24-May 25-May 28-May 29-May 30-May 31-May
0.09% 0.04% 0.04% 0.04% 0.04% 0.20% 0.02% 0.02% 0.03% 0.95%
19-Jun 20-Jun 21-Jun 22-Jun 25-Jun 26-Jun 27-Jun 28-Jun 29-Jun TOTAL Avg.
0.03% 0.03% 0.03% 0.03% 0.08% 0.03% 0.03% 0.09% 0.03% 0.94%
19-Jul 20-Jul 23-Jul 24-Jul 25-Jul 26-Jul 27-Jul 30-Jul 31-Jul TOTAL Avg.
0.05% 0.01% 0.18% 0.02% 0.02% 0.02% 0.01% 0.04% 0.01% 1.43%
TOTAL Avg. RETURNS
0.61%
TOTAL Avg.
0.68%
TOTAL Avg.
0.03%
RETURNS
0.03%
RETURNS
0.05%
RETURNS
0.04%
RETURNS
0.07%
59
HDFC Gilt Fund Long Term Plan

DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV RETUR N (%) 2-Jul 3-Jul 4-Jul 5-Jul 6-Jul 9-Jul 10-Jul 11-Jul 12-Jul 13-Jul 16-Jul 17-Jul 19-Jul 20-Jul 0.19% 0.03% 0.16% 0.17% -0.09% 0.29% -0.07% -0.03% 0.04% -0.02% 0.06% 0.12% 0.06% 0.12%
RETURN (%) 1-Mar 2-Mar 5-Mar 6-Mar 7-Mar 8-Mar 9-Mar 12-Mar 13-Mar 14-Mar 16-Mar 19-Mar 20-Mar 21-Mar 0.26% -0.06% -0.02% 0.09% 0.08% -0.33% -0.02% 0.34% -0.12% -0.06% -0.30% 0.06% -0.20% 0.10% 2-Apr 3-Apr 4-Apr 5-Apr 9-Apr 10-Apr 11-Apr 12-Apr 13-Apr 16-Apr 17-Apr 18-Apr 19-Apr 20-Apr
RETURN (%) 0.06% -0.90% 0.09% -0.18% 0.37% 0.39% -0.14% -0.11% -0.10% -0.06% 0.13% 0.17% 0.08% 0.04% 3-May 4-May 7-May 8-May 9-May 10-May 11-May 14-May 15-May 16-May 17-May 18-May 21-May 22-May
RETURN (%) 0.13% -0.03% 0.10% 0.16% 0.12% -0.23% 0.00% 0.15% 0.15% 0.08% -0.03% -0.06% 0.23% -0.05% 1-Jun 4-Jun 5-Jun 6-Jun 7-Jun 8-Jun 11-Jun 12-Jun 13-Jun 14-Jun 15-Jun 18-Jun 19-Jun 20-Jun
RETURN (%) 0.06% -0.01% -0.07% -0.21% 0.16% -0.25% -0.92% 0.03% -0.17% 0.58% 0.34% 0.48% -0.10% -0.08%
22-Mar 23-Mar 26-Mar 28-Mar
0.53% 0.04% -0.23% 0.13%
23-Apr 24-Apr 25-Apr 26-Apr 27-Apr 30-Apr
-0.08% 0.55% 0.03% -0.29% -0.29% -0.01%
-0.05% -0.02% 0.18% 0.38% -0.06% -0.04% 0.16% 1.27%
21-Jun 22-Jun 25-Jun 26-Jun 27-Jun 28-Jun 29-Jun TOTAL Avg.
0.06% 0.04% 0.07% -0.06% -0.09% 0.16% 0.02% 0.04%
23-Jul 24-Jul 25-Jul 26-Jul 27-Jul 30-Jul 31-Jul TOTAL Avg.
0.59% -0.20% -0.26% 0.12% -0.26% 0.30% -0.51% 0.81%
TOTAL Avg. RETURNS
0.29% TOTAL Avg. 0.02% RETURNS
-0.25%
TOTAL Avg.
-0.01%
RETURNS
0.06%
RETURNS
0.00%
RETURNS
0.04%
60
Pru ICICI Gilt Fund (Investment)

DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV RETUR N (%) 2-Jul 3-Jul 4-Jul 5-Jul 6-Jul 9-Jul 10-Jul 11-Jul 12-Jul 13-Jul 16-Jul 17-Jul 19-Jul 20-Jul 23-Jul 24-Jul 25-Jul 0.31% 0.34% 0.11% 0.09% 0.47% 0.40% 0.04% 0.07% -0.08% 0.17% 0.34% 0.15% 0.14% 0.46% -0.17% -0.27% 0.14%
RETURN (%) 1-Mar 2-Mar 5-Mar 6-Mar 7-Mar 8-Mar 9-Mar 12-Mar 13-Mar 14-Mar 16-Mar 19-Mar 20-Mar 21-Mar 22-Mar 23-Mar 26-Mar 0.04% -0.04% 0.02% 0.00% 0.02% 0.00% 0.03% 0.03% 0.00% -0.02% 0.05% 0.07% 0.08% 0.17% 0.03% -0.05% 0.07% 1-Mar 2-Mar 5-Mar 6-Mar 7-Mar 8-Mar 9-Mar 12-Mar 13-Mar 14-Mar 16-Mar 19-Mar 20-Mar 21-Mar 22-Mar 23-Mar 26-Mar
RETURN (%) 0.04% -0.09% 0.01% 0.22% 0.07% 0.01% 0.02% -0.04% 0.07% 0.06% 0.00% 0.08% 0.04% 0.08% 0.27% 0.07% -0.17% 3-May 4-May 7-May 8-May 9-May 10-May 11-May 14-May 15-May 16-May 17-May 18-May 21-May 22-May 23-May 24-May 25-May
RETURN (%) 0.09% -0.05% -0.05% 0.09% 0.02% -0.09% 0.01% 0.17% 0.06% 0.05% -0.04% 0.00% 0.08% -0.01% 0.05% -0.05% 0.11% 1-Jun 4-Jun 5-Jun 6-Jun 7-Jun 8-Jun 11-Jun 12-Jun 13-Jun 14-Jun 15-Jun 18-Jun 19-Jun 20-Jun 21-Jun 22-Jun 25-Jun
RETURN (%) -0.04% -0.05% -0.02% 0.01% 0.00% -0.09% 0.14% 0.10% -0.05% -0.05% 0.10% 0.24% -0.05% 0.01% 0.02% -0.01% -0.04%
28-Mar
28-Mar 30-Apr
-0.07% -0.03%
0.15% -0.05% -0.06% 0.10% 0.58%
0.06% -0.12% 0.13% -0.02% 0.27%
-0.28% 0.53% -0.49%
TOTAL Avg. RETURNS
0.50%
TOTAL Avg.
0.64%
TOTAL Avg.
2.47%
0.03%
RETURNS
0.03%
RETURNS
0.03%
RETURNS
0.01%
RETURNS
0.12%
61
Birla Gilt Plus - Regular

DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV RETUR N (%) 0.00% -0.04% 0.04% -0.19% 0.12% -0.19% -0.09% -0.01% -0.03% 0.04% 0.05% 0.12% -0.05% -0.02% 0.03% 0.00% 0.12% 2-Jul 3-Jul 4-Jul 5-Jul 6-Jul 9-Jul 10-Jul 11-Jul 12-Jul 13-Jul 16-Jul 17-Jul 19-Jul 20-Jul 23-Jul 24-Jul 25-Jul 0.29% 0.07% 0.47% 0.39% 0.03% 0.54% -0.03% -0.04% 0.10% -0.08% 0.15% 0.33% 0.05% 0.12% 0.51% -0.13% -0.11%
RETURN (%) 1-Mar 2-Mar 5-Mar 6-Mar 7-Mar 8-Mar 9-Mar 12-Mar 13-Mar 14-Mar 16-Mar 19-Mar 20-Mar 21-Mar 22-Mar 23-Mar 26-Mar 0.04% -0.03% -0.03% 0.10% 0.01% -0.15% -0.01% 0.08% -0.02% 0.02% 0.00% 0.05% -0.05% 0.03% 0.13% 0.02% 0.02% 2-Apr 3-Apr 4-Apr 5-Apr 9-Apr 10-Apr 11-Apr 12-Apr 13-Apr 16-Apr 17-Apr 18-Apr 19-Apr 20-Apr 23-Apr 24-Apr 25-Apr
RETURN (%) 0.00% -0.01% 0.02% 0.01% 0.11% 0.03% -0.03% -0.02% 0.02% 0.03% 0.07% 0.02% 0.09% 0.03% 0.04% 0.75% 0.08% 3-May 4-May 7-May 8-May 9-May 10-May 11-May 14-May 15-May 16-May 17-May 18-May 21-May 22-May 23-May 24-May 25-May
RETURN (%) 0.08% 0.01% 0.06% 0.05% 0.03% -0.03% -0.01% 0.12% 0.15% 0.07% -0.05% -0.10% 0.23% -0.04% 0.00% -0.02% 0.05% 1-Jun 4-Jun 5-Jun 6-Jun 7-Jun 8-Jun 11-Jun 12-Jun 13-Jun 14-Jun 15-Jun 18-Jun 19-Jun 20-Jun 21-Jun 22-Jun 25-Jun
RETURN (%)
28-Mar 30-Mar
0.04% 0.03%
-0.26% -0.17% -0.04%
0.07% -0.03% -0.01% 0.04% 0.67%
-0.10% -0.10% 0.22% 0.01% -0.07%
0.16% -0.13% 0.17% -0.04% 2.82%
TOTAL Avg. RETURNS
0.28%
TOTAL Avg.
0.77%
TOTAL Avg.
0.01%
RETURNS
0.04%
RETURNS
0.03%
RETURNS
0.00%
RETURNS
0.13%
62
sensex Month March April May June July TOTAL MEAN returns -0.14 0.14 0.02 -0.17 0.11 -0.04 -0.008
DSP ML
(Smmean) -0.132 0.148 0.028 -0.162 0.118
(Bmmean) -0.14 -0.19 0.54 -0.16 -0.05
(Sm-Sm)*(TmTm) 0.01848 -0.02812 0.01512 0.02592 -0.0059 0.0255
(Tm-mean)*(tmmean) 0.0196 0.0361 0.2916 0.0256 0.0025
0.03 -0.02 0.71 0.01 0.12 0.85 0.17
BETA 0.0255/0.08028
0.1725
0.317638266
0.057
sensex Month returns Magnum (Sm-mean) (Bm-mean) (Sm-Sm)*(Tm-Tm) (Tm-mean)*(tm-mean)
-0.14 0.14 0.02 -0.17 0.11 -0.04 -0.008
0.03 0.03 0.05 0.04 0.07 0.22 0.044
-0.132 0.148 0.028 -0.162 0.118
-0.014 -0.014 0.006 -0.004 0.026
0.001848 -0.002072 0.000168 0.000648 0.003068 0.000592
0.000196 0.000196 0.0000360 0.000016 0.000676
BETA 0.00059/ 0.08028 0.007349278
0.044 0.0027
63
sensex Month March April May June July TOTAL MEAN returns -0.14 0.14 0.02 -0.17 0.11 -0.04 -0.008 HDFC 0.02 -0.01 0.06 0 0.04 0.11 0.022
(Smmean) -0.132 0.148 0.028 -0.162 0.118
(Bmmean) -0.002 -0.032 0.038 -0.022 0.018
(Sm-Sm)*(TmTm) 0.000264
(Tm-mean)*(tmmean) 0.000004
-0.004736 0.001024 0.001064 0.003564 0.002124 0.00228 0.001444 0.000484 0.000324
BETA 0.00228/ 0.08028 0.028400598
0.022 0.00057
sensex Month March April returns -0.14 0.14
Pru ICICI 0.03 0.03
(Smmean) -0.132 0.148
(Bmmean) -0.014 -0.014
(Sm-Sm)*(TmTm) 0.001848 -0.002072
(Tm-mean)*(tmmean) 0.000196 0.000196
May June July TOTAL MEAN
0.02 -0.17 0.11 -0.04 -0.008
0.03 0.01 0.12 0.22 0.044
0.028 -0.162 0.118
-0.014 -0.034 0.076
-0.000392 0.000196 0.005508 0.001156 0.008968 0.01386 0.005776
BETA 0.01386/ 0.08028 0.17264574
0.045 0.0024
sensex Month returns Birla (Sm-mean)
(Bmmean) (Sm-Sm)*(Tm-Tm) (Tm-mean)*(tm-mean)
March April May
-0.14 0.14 0.02
0.01 0.04 0.03
-0.132 0.148 0.028
-0.032 -0.002 -0.012
0.004224
0.001024
-0.000296 0.000004 -0.000336 0.000144
64
June July TOTAL MEAN
-0.17 0.11 -0.04 -0.008
0 0.13 0.21 0.042
-0.162 0.118
-0.042 0.088
0.006804 0.010384 0.02078
0.001764 0.007744
BETA
0.02078/ 0.08028 0.25884405
ALPHA
0.044
0.003 Standard Deviation 2
SCHEMES DSPML G-SEC FUND MAGNUM GILT FUND HDFC GILT FUND PRU ICICI GILT FUND BIRLA GILT PLUS
BETA 0.318
ALPHA 0.173
S.D. 0.057
0.007 0.028
0.044 0.022
0.0027 0.00057
0.173 0.259
0.045 0.044
0.0024 0.0032
INTERPRETATION
BETA:
Beta of DSP ML G-Sec Fund is the highest, which indicate that volatility in this specific schemes is more as compared to other fund. But at the same time Magnum Gilt Fund and HDFC Gilt Fund has shown less risky investments.
ALPHA:
Returns on HDFC Gilt Fund is less but it has shown volatility also.But DSP ML G-Sec Fund has taken risk but at the same time it has generated positive returns.
STANDARD DEVIATION:
DSP ML G-Sec has shown more deviation as compared to other G-sec funds.
65
HDFC LIQUID FUND
PRU ICICI LIQUID
MAGNUM INSTACASH
TEMPLETON INDIA LIQUID PLUS
JM BASIC FUND
66
HDFC Liquid Fund

HDFC Liquid Fund
DATE NAV RETUR N (%) 2-Apr 3-Apr 4-Apr 5-Apr 6-Apr 8-Apr 9-Apr 10-Apr 11-Apr 12-Apr 13-Apr 15-Apr 16-Apr 17-Apr 18-Apr 19-Apr 20-Apr 22-Apr 23-Apr 24-Apr 0.13% 0.03% 0.03% 0.03% 0.02% 0.05% 0.02% 0.02% 0.02% 0.02% 0.02% 0.05% 0.02% 0.02% 0.03% 0.02% 0.02% 0.05% 0.02% 0.02% 1-Mar 2-Mar 4-Mar 5-Mar 6-Mar 7-Mar 8-Mar 9-Mar 11-Mar 12-Mar 13-Mar 14-Mar 16-Mar 19-Mar 20-Mar 21-Mar 22-Mar 23-Mar 25-Mar 26-Mar DATE NAV RETUR N (%) 0.00% 0.02% 0.04% 0.02% 0.02% 0.02% 0.02% 0.02% 0.04% 0.02% 0.02% 0.02% 0.05% 0.07% 0.03% 0.03% 0.03% 0.03% 0.05% 0.03% 2-May 3-May 4-May 6-May 7-May 8-May 9-May 10-May 11-May 13-May 14-May 15-May 16-May 17-May 18-May 20-May 21-May 22-May 23-May 24-May DATE NAV RETUR N (%) 0.07% 0.02% 0.02% 0.05% 0.02% 0.02% 0.02% 0.02% 0.02% 0.05% 0.03% 0.02% 0.02% 0.03% 0.02% 0.05% 0.02% 0.02% 0.02% 0.02% 1-Jun 3-Jun 4-Jun 5-Jun 6-Jun 7-Jun 8-Jun 11-Jun 12-Jun 13-Jun 14-Jun 15-Jun 17-Apr 18-Jun 19-Jun 20-Jun 21-Jun 22-Jun 24-Apr 25-Jun DATE NAV RETUR N (%) 0.07% 0.03% 0.01% 0.01% 0.01% 0.01% 0.01% 0.03% 0.01% 0.02% 0.02% 0.02% 0.02% 0.03% 0.02% 0.02% 0.02% 0.01% 0.02% 0.04% 2-Jul 3-Jul 4-Jul 5-Jul 6-Jul 8-Jul 9-Jul 10-Jul 11-Jul 12-Jul 13-Jul 15-Jul 16-Jul 17-Jul 19-Jul 20-Jul 22-Jul 23-Jul 24-Jul 25-Jul DATE NAV RETUR N (%) 0.07% 0.02% 0.02% 0.02% 0.02% 0.04% 0.02% 0.02% 0.02% 0.02% 0.02% 0.04% 0.02% 0.02% 0.04% 0.02% 0.03% 0.02% 0.02% 0.02%
0.03% 0.02% 0.02% 0.05% 0.03%
27-Mar 28-Mar
0.03% 0.03%
0.02% 0.05% 0.02% 0.02% 0.02% 0.02% 0.71%
26-Jun 27-Jun 28-Jun 29-Jun
0.02% 0.02% 0.02% 0.02%
26-Jul 27-Jul 29-Jul 30-Jul
0.02% 0.02% 0.03% 0.02%
TOTAL Avg. RETURNS
0.79%
TOTAL Avg.
0.64%
TOTAL Avg.
TOTAL Avg.
0.54%
TOTAL Avg.
0.61%
0.03%
RETURNS
0.03%
RETURNS
0.03%
RETURNS
0.02%
RETURNS
0.03%
67
Pru ICICI Liquid

DATE NAV RETURN (%) 1-Mar 2-Mar 4-Mar 5-Mar 6-Mar 7-Mar 8-Mar 9-Mar 11-Mar 12-Mar 13-Mar 14-Mar 16-Mar 19-Mar 20-Mar 21-Mar 22-Mar 23-Mar 25-Mar 26-Mar 27-Mar 28-Mar 0.05% 0.02% 0.04% 0.02% 0.02% 0.02% 0.02% 0.02% 0.04% 0.02% 0.02% 0.02% 0.05% 0.07% 0.03% 0.03% 0.03% 0.03% 0.05% 0.03% 0.03% 0.03% 2-Apr 3-Apr 4-Apr 5-Apr 6-Apr 8-Apr 9-Apr 10-Apr 11-Apr 12-Apr 13-Apr 15-Apr 16-Apr 17-Apr 18-Apr 19-Apr 20-Apr 22-Apr 23-Apr 24-Apr 25-Apr 26-Apr DATE NAV RETURN (%) 0.16% 0.03% 0.03% 0.03% 0.03% 0.05% 0.02% 0.02% 0.02% 0.02% 0.02% 0.05% 0.02% 0.03% 0.03% 0.03% 0.03% 0.05% 0.03% 0.03% 0.02% 0.03% 2-May 3-May 4-May 6-May 7-May 8-May 9-May 10-May 11-May 13-May 14-May 15-May 16-May 17-May 18-May 20-May 21-May 22-May 23-May 24-May 25-May 27-May DATE NAV RETURN (%) 0.05% 0.02% 0.02% 0.05% 0.02% 0.02% 0.02% 0.02% 0.02% 0.05% 0.02% 0.02% 0.02% 0.02% 0.02% 0.05% 0.02% 0.02% 0.02% 0.02% 0.02% 0.05% 1-Jun 3-Jun 4-Jun 5-Jun 6-Jun 7-Jun 8-Jun 10-Jun 11-Jun 12-Jun 13-Jun 14-Jun 15-Jun 17-Apr 18-Jun 19-Jun 20-Jun 21-Jun 22-Jun 24-Apr 25-Jun 26-Jun DATE NAV RETURN (%) 0.05% 0.03% 0.02% 0.02% 0.02% 0.02% 0.01% 0.03% 0.01% 0.01% 0.01% 0.01% 0.01% 0.04% 0.02% 0.02% 0.02% 0.02% 0.02% 4.00% 0.02% 0.02% 2-Jul 3-Jul 4-Jul 5-Jul 6-Jul 8-Jul 9-Jul 10-Jul 11-Jul 12-Jul 13-Jul 15-Jul 16-Jul 17-Jul 19-Jul 20-Jul 22-Jul 23-Jul 24-Jul 25-Jul 26-Jul 27-Jul DATE NAV RETURN (%) 0.11% 0.02% 0.02% 0.02% 0.02% 0.04% 0.02% 0.02% 0.02% 0.02% 0.02% 0.03% 0.02% 0.02% 0.04% 0.02% 0.04% 0.02% 0.02% 0.02% 0.02% 0.02%
0.03% 0.05% 0.03%
0.02% 0.02% 0.02% 0.02% 0.67%
0.02% 0.03% 0.03%
29-Jul 30-Jul
0.03% 0.02% 0.01%
TOTAL Avg. RETURNS
0.69%
TOTAL Avg.
0.89%
TOTAL Avg.
TOTAL Avg.
4.51%
TOTAL Avg.
0.66%
0.03%
RETURNS
0.04%
RETURNS
0.03%
RETURNS
0.18%
RETURNS
0.03%
68
Magnum InstaCash
DATE NAV RETUR RETUR N (%) 0.00% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.01% 0.01% 0.01% 0.01% 0.02% 0.02% 0.02% 0.02% 1-Jul 2-Jul 3-Jul 4-Jul 5-Jul 6-Jul 7-Jul 8-Jul 9-Jul 10-Jul 11-Jul 12-Jul 13-Jul 14-Jul 15-Jul 16-Jul 17-Jul 19-Jul 20-Jul 22-Jul 23-Jul 0.06% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.01% 0.01% 0.02% 0.01% 0.01% 0.01% 0.02% 0.02% 0.03% 0.01% 0.02% 0.01% DATE NAV DATE NAV DATE NAV DATE NAV
N (%) 1-Mar 2-Mar 3-Mar 4-Mar 5-Mar 6-Mar 7-Mar 8-Mar 9-Mar 10-Mar 11-Mar 12-Mar 13-Mar 14-Mar 16-Mar 17-Mar 18-Mar 19-Mar 20-Mar 21-Mar 22-Mar 0.0599 0.0002 0.0002 0.0002 0.0002 0.0002 0.0002 0.0002 0.0002 0.0002 0.0002 0.0002 0.0002 0.0002 0.0005 0.0003 0.0002 0.0003 0.0003 0.0003 0.0002 2-Apr 3-Apr 4-Apr 5-Apr 6-Apr 7-Apr 8-Apr 9-Apr 10-Apr 11-Apr 12-Apr 13-Apr 14-Apr 15-Apr 16-Apr 17-Apr 18-Apr 19-Apr 20-Apr 21-Apr 22-Apr
RETURN (%) 0.06% 0.02% 0.03% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.03% 0.06% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02%
RETURN (%) 1-May 2-May 3-May 4-May 5-May 6-May 7-May 8-May 9-May 10-May 11-May 12-May 13-May 14-May 15-May 16-May 17-May 18-May 19-May 20-May 21-May 1-Jun 2-Jun 3-Jun 4-Jun 5-Jun 6-Jun 7-Jun 8-Jun 9-Jun 10-Jun 11-Jun 12-Jun 13-Jun 14-Jun 15-Jun 16-Jun 17-Jun 18-Jun 19-Jun 20-Jun 21-Jun
RETURN (%)
23-Mar 24Mar 25-Mar 26-Mar 27-Mar 28-Mar 31-Mar
0.0003 0.0003 0.0003 0.0003 0.0003 0.0003 0.001
0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02%
0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02%
22-May 23-May 24-May 25-May 26-May 27-May 28-May 29-May 30-May 31-May 0.66% 0.000212
22-Jun 23-Jun 24-Jun 25-Jun 26-Jun 27-Jun 28-Jun 29-Jun
0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02%
24-Jul 25-Jul 26-Jul 27-Jul 28-Jul 29-Jul 30-Jul 31-Jul
0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01%
TOTAL Avg. RETURNS
0.0674
TOTAL Avg.
0.62% 0.000221
TOTAL Avg.
TOTAL Avg.
0.52% 0.000185
TOTAL Avg.
0.48% 0.000164 8
0.002407
RETURNS
1 RETURNS
9 RETURNS
7 RETURNS
69
Templeton India Liquid Plus

DATE NAV RETUR N (%) 1-Mar 2-Mar 4-Mar 5-Mar 6-Mar 7-Mar 8-Mar 9-Mar 11-Mar 12-Mar 13-Mar 14-Mar 16-Mar 19-Mar 20-Mar 21-Mar 22-Mar 23-Mar 25-Mar 26-Mar RETURN (%) 2-Apr 3-Apr 4-Apr 5-Apr 6-Apr 8-Apr 9-Apr 10-Apr 11-Apr 12-Apr 13-Apr 15-Apr 16-Apr 17-Apr 18-Apr 19-Apr 20-Apr 22-Apr 23-Apr 24-Apr RETURN (%) RETURN (%) DATE NAV DATE NAV DATE NAV DATE NAV RETUR N (%)
0.00% 0.02% 0.04% 0.02% 0.02% 0.02% 0.02% 0.02% 0.04% 0.02% 0.02% 0.02% 0.04% 0.06% 0.02% 0.04% 0.03% 0.01% 0.06% 0.02%
0.073 0.00% 0.02% 0.02% 0.02% 0.04% 0.02% 0.02% 0.02% 0.02% 0.02% 0.04% 0.02% 0.03% 0.03% 0.02% 0.03% 0.04% 0.02% 0.02%
2-May 3-May 4-May 6-May 7-May 8-May 9-May 10-May 11-May 13-May 14-May 15-May 16-May 17-May 18-May 20-May 21-May 22-May 23-May 24-May
0.073 0.02% 0.02% 0.04% 0.02% 0.02% 0.02% 0.03% 0.02% 0.04% 0.02% 0.02% 0.02% 0.02% 0.02% 0.04% 0.02% 0.02% 0.02% 0.02%
1-Jun 3-Jun 4-Jun 5-Jun 6-Jun 7-Jun 8-Jun 10-Jun 11-Jun 12-Jun 13-Jun 14-Jun 15-Jun 17-Jun 18-Jun 19-Jun 20-Jun 21-Jun 22-Jun 24-Jun
0.073 0.04% 0.02% 0.02% 0.02% 0.02% 0.02% 0.03% 0.01% 0.01% 0.01% 0.02% 0.02% 0.03% 0.02% 0.02% 0.01% 0.07% 0.01% 0.02%
2-Jul 3-Jul 4-Jul 5-Jul 6-Jul 8-Jul 9-Jul 10-Jul 11-Jul 12-Jul 13-Jul 15-Jul 16-Jul 17-Jul 19-Jul 20-Jul 22-Jul 23-Jul 24-Jul 25-Jul
0.00% 0.02% 0.02% 0.06% 0.01% 0.03% 0.01% 0.01% 0.01% 0.01% 0.01% 0.02% 0.01% 0.01% 0.03% 0.01% 0.03% 0.01% 0.01% 0.01%
27-Mar 28-Mar
0.02% 0.01%
0.02% 0.02% 0.02% 0.04% 0.02%
0.02% 0.04% 0.02% 0.03% 0.02% 0.02%
0.01% 0.03% 0.02% 0.02% 0.02%
0.01% 0.01% 0.03% 0.01% 0.01%
TOTAL
0.49%
TOTAL
0.0057 TOTAL
0.079 0.0030 4
TOTAL
0.0782 0.0031 3
TOTAL
0.40%
Avg.
Avg.
0.0031 5
Avg.
Avg.
Avg.
0.03%
RETURNS RETURNS
0.0002
RETURNS
RETURNS
RETURNS
70
DATE
NAV RETURN (%) 1-Mar 2-Mar 4-Mar 5-Mar 6-Mar 7-Mar 8-Mar 9-Mar 11-Mar 12-Mar 13-Mar 14-Mar 16-Mar 19-Mar 20-Mar 21-Mar 22-Mar 23-Mar 25-Mar 26-Mar 27-Mar 28-Mar 0.70% -1.61% -4.31% 0.06% -0.74% 2.81% -0.11% 0.73% 1.67% -2.46% -0.73% 1.18% -0.11% 0.84% 2.10% 0.70% -0.11% -1.08%
DATE
NAV RETURN (%)
DATE
NAV RETURN (%)
DATE
NAV RETURN (%)
DATE
NAV RETURN (%)
2-Apr 3-Apr 4-Apr 5-Apr 6-Apr 8-Apr 9-Apr 10-Apr 12-Apr 13-Apr 16-Apr 17-Apr 18-Apr 20-Apr 22-Apr 23-Apr 24-Apr 25-Apr 26-Apr 27-Apr
-2.34% 1.45% 1.43% 1.08% 2.25% 0.26% 1.73% -0.10% 1.18% 1.78% -0.75% 0.70% -0.90% 1.06% 0.15% 1.55% 1.18% -0.24% -1.07% 1.67%
2-May 3-May 4-May 6-May 7-May 8-May 9-May 10-May 11-May 13-May 14-May 15-May 16-May 17-May 18-May 20-May 21-May 22-May 23-May 24-May 25-May
1.21 -0.53% 0.10% -1.15% 0.05% 0.44% 1.11% 1.82% -0.89% 1.85% 0.33% 0.65% 0.78% 0.64% -0.68% -0.59% 0.74% 1.87% 1.03% 1.64% 0.65%
1-Jun 3-Jun 4-Jun 5-Jun 6-Jun 7-Jun 8-Jun 10-Jun 11-Jun 13-Jun 14-Jun 17-Jun 18-Jun 19-Jun 20-Jun 22-Jun 24-Jun 25-Jun 26-Jun 27-Jun 28-Jun
0.56% -1.57% 0.34% -0.98% 0.23% -0.73% 0.20% -0.26% -0.46% 1.07% 0.40% 0.33% 0.78% 2.07% 1.84% -0.51% 0.10% 0.36% -0.77% 1.12% 1.57%
2-Jul 3-Jul 4-Jul 5-Jul 6-Jul 8-Jul 9-Jul 10-Jul 11-Jul 12-Jul 13-Jul 15-Jul 16-Jul 17-Jul 19-Jul 20-Jul 22-Jul 23-Jul 24-Jul 25-Jul 26-Jul
1.15% 2.05% 0.41% -0.21% 1.81% 1.29% -0.40% 1.11% 1.82% 1.06% -0.58% -0.86% 0.97% 0.18% 1.44% 0.29% -1.26% 0.02% -2.94% -0.04% 2.43%
TOTAL Avg. RETURNS
-0.47
TOTAL Avg.
12.07%
TOTAL Avg.
1.31%
TOTAL Avg.
5.69%
TOTAL Avg.
9.74%
-0.02611
RETURNS
0.006035
RETURNS
0.06231
RETURNS
0.0027095
RETURNS
0.0046381
71
LIQUID FUNDS
sensex Month returns
HDFC Liq
(Smmean)
(Bmmean)
(Sm-Sm)*(TmTm)
(Tm-mean)*(tmmean)
March April May June July TOTA L MEAN
-0.14 0.14 0.02 -0.17 0.11 -0.04 -0.008
0.03 0.03 0.03 0.02 0.03 0.14 0.028
-0.132 0.148 0.028 -0.162 0.118
0.002 0.002 0.002 -0.008 0.002
-0.000264 0.000296 0.000056 0.001296 0.000236 0.00162
0.000004 0.000004 0.000004 0.000064 0.000004
BETA 0.00162/ 0.08028 0.02018

Pru ICICI Month sensex returns Liquid (Sm-mean)
ALPH A
0.028
Standard Deviation 0.000027
(Bm-mean)
(Sm-Sm)*(Tm-Tm)
(Tm-mean)*(tm-mean)
March April May
-0.14 0.14 0.02
0.03 0.04 0.03
-0.132 0.148 0.028
-0.032 -0.022 -0.032
0.004224 -0.003256 -0.000896
0.001024 0.000484 0.001024
June July TOTA L MEAN
-0.17 0.11
0.18 0.03
-0.162 0.118
0.118 -0.032
-0.019116 -0.003776
0.013924 0.001024
-0.04 -0.008
0.31 0.062
-0.02282
0.005834117
BETA -0.02282/0.08028 -0.2843
ALPHA
0.059725959 0.0058
Standard Deviation
72
sensex Month returns magnum (Sm-mean) (Bm-mean)
(Sm-Sm)* (Tm-Tm) (Tm-mean)*(tm-mean)
-0.14 0.14 0.02 -0.17 0.11 -0.04 -0.008
0.0024 0.0002 0.00021 0.00018 0.0002 0.00319 0.000638
-0.132 0.148 0.028 -0.162 0.118
0.002032 -0.000268224 -0.000168 -0.000024864 -0.000158 -0.000004424 -0.000188 0.000030456
0.00000413 0.00000003 0.00000002 0.00000004 0.00000003 0.00000183
-0.000168 -0.000019824 -0.00028688
BETA -0.00029/ 0.08028 -0.00361
0.000609412 0.00000183
Templeton sensex Month returns India Liquid Plus (Sm-mean) (Bm-mean) (Sm-Sm)*(TmTm) (Tm-mean)*(tm-mean)
-0.14 0.14 0.02 -0.17 0.11 -0.04 -0.008
0.03 0.003 0.003 0.003 0.00016 0.03916 0.007832
-0.132 0.148 0.028 -0.162 0.118
0.022168 -0.002926176 -0.004832 -0.000715136 -0.004832 -0.000135296 -0.004832 0.000782784
0.00049142 0.000023348 0.000023348 0.000023348 0.000058860
-0.007672 -0.000905296 -0.00389912
BETA -0.0039/ 0.08028 -0.04858
0.007443448 0.00021
sensex Month returns
JM Basic Fund (Sm-mean) (Bm-mean)
(Sm-Sm)*(TmTm) (Tm-mean)*(tm-mean)
-0.14 0.14 0.02 -0.17 0.11 -0.04 -0.008
-0.00026 0.006 0.06231 0.0027 0.0046 0.075349 0.01507
-0.132 0.148 0.028 -0.162 0.118
-0.0153308 -0.0090698 0.0472402 -0.0123698 -0.0104698
0.002023666 -0.00134233 0.001322726
0.000235033 8.22613E-05 0.002231636
0.002003908 0.000153012 -0.001235436 0.000109617 0.002772532 0.000934968
BETA 0.00277/ 0.08028
ALPHA 73
0.015346086
0.0345
Standard Deviation
0.00093
SCHEMES HDFC Liq Pru ICICI Magnum Templeton India JM Basic Fund
BETA 0.02018 -0.284 -0.0036
ALPHA 0.028 0.06 0.0006
S.D. 0.000027 0.01 0
-0.049
0.007
0.00021
0.0345
0.015
0.0093
INTERPRETATION:
BETA
In Liquid most of the schemes has shown more volatility except HDFC Liquid
Fund and JM Basic Fund. All other funds has been volatile as compared to SENSEX.
ALPHA
As the nature of Liquid Fund is to provide easy liquidy to investors, therefore the return accepted from this type of fund is also less. Among these funds Magnum Instacash has given less returns as compared to other funds.
STANDARD DEVIATION Among the above mentioned schemes Pru ICICI has shown more volatility in its portfolio. But Magnum Insta cash has shown no deviation in its portfolio.
Therefore for short term investors HDFC Liquid Fund is suitable as it has given returns and at the same time in has not shown much volatility as compared to SENSEX returns.
RECOMMENDATIONS
74
Remember to pack the following investment gems in your luggage as you set forth on your financial journey. These guideposts reinforce and expand the key points covered throughout Building Your Mutual Fund Portfolio.
Diversify for investment success: Develop a solid plan based on your age, time horizon, liquidity needs, income and risk tolerance. Stick with it until your circumstances change.
Periodically rebalance your holdings to your original asset allocation benchmark: By doing this, you will wind up selling shares in expensive funds and reinvesting in cheaper ones.
Invest as much as you can in stock funds: As a rough rule, try to hold a percentage at least equal to 100 minus your age i n stocks. Senior citizens might consider 110 minus their ages to avoid growing too conservative.
Dont hop from fund to fund: Traders often lag the long-range returns of the stock and bonds markets.
Set your sights on building wealth slowly: Get rich quick schemes often backfire. People who amass fortunes through speculation frequently also learn how it feels to get poor quickly.
Keep it simple: Basic investment plans often work best on the quest for wealth.
Avoid gimmicks: Dont invest in anything you dont understand. Pai n vanilla funds survive the test of time better than faddish peers that make use of derivatives and other arcane strategies.
Do your home work before starting out: Never buy or sell Mutual Funds solely on the basis of tips. If a suggestion seems to have merit, do your own analysis.
Focus on risk, return and cost when evaluating funds: Keep in mind that a funds risk and expenses are easier to predict than its return.
Judge past performance with a grain of salt: Historic returns dont always predict future results, especially if a funds management or investment style has changed recently.
Dont neglect the prospectus: Youll find the guts of this document in the financial - highlights. Look for past expense rat ions, portfolio turnovers, total annual returns and year to year changes in assets.
75
Consider hiring a stockbroker or financial planner if you need help with your portfolio: Just make sure the individual is competent and will your needs. The more you understand about investment risks, return and costs, better you can evaluate the kind of jobs your advisor is doing.
Dont overlook estate planning in your investment game plan: A living trust has important advantage over a will.
Make sure your Mutual Fund accounts are titled correctly: Individual, joint, custodial and trust account are four common alternatives. The manners of titling takes precedence over any instructions in your heirs know about your accounts.
Take advantage of fund company service: Telephone reps often can furnish answers to your questions.
Let time work for you: At 10 percent annually the long run average ret urn on stocks your money doubles every 7.3 years, quadruples every 14.6 years and expands tenfold every 24.2 years.
Emphasize time over market timing: Buy good stock funds and stay with them for the long haul. Even professional have trouble predicting the markets next move.
Invest regularly: Its been demonstrated that you can do well over the long haul even if you invest money each year at or near the markets annual peak.
Recognize that the risk of being in stock decreases as your holding period lengthens: Known as time diversification, it works because the good years far outweigh the bad over lengthy period. On average, seven out of every ten years are winners in the stock market.
Save as much of your paycheck as you can: The older you get and the higher
your income, the larger the percentage you should strive to set aside.
Consider painless and efficient automatic investment plans, as offered by many fund companies. Your monthly investment go straight into your chosen fund from either a bank account or your paycheck.
Pay attention to what T-bills yield relative to stocks: by dividing the yield on the former by the yield on the latter, when 91 days T-bills yield more than twice the sensex 30s yield, it could signal that stocks have become overpriced.
76
Conversely, recognize the excellent value offered by stocks any time the Tbills /stock yield ration is considerably below 2. At the extreme, stock market condition could be highly favorable when both numbers are about equal.
Dont expect good or bad times to last forever. Stocks can stay overvalued or undervalued for surprisingly long stretches, but bull markets always come to an end, and so do bear markets.
Use standard deviation instead of beta to evaluate a mutual fund risk: The former is a pure, unbiased measure of volatility, which is not tied to a particular stock-price index as is beta. Standard deviation measures the extent to which returns bob up and down around their average.
Examine your funds composite PE ratio: The average price earnings ratio for all the stocks it holds. If a funds PE is well above that of the sensex 30s, it faces greater possible losses in a correction or bear market.
Remember that volatile funds might not be so bad when held in appropriate proportions within a broad portfolio. Combining funds that rise and fall at different times could result in an overall smoother ride.
Combine funds that follow the growth and value stock picking styles: as one style normally is out of favour when the other is in. your portfolios fluctuations will be less erratic if you include investments from both camps.
Dont give up stock funds, even if youre retired: A 65 year old retiree can expect to live another 20 years or so. If you need income, take your dividends in cash. If thats insufficient, make systematic withdrawals from a diversified portfolio.
But dont set up a systematic withdrawal plan without forst calculating how long your capital will last: given your expected return and withdrawal
rate. Considering the impact of taxes and inflation, you risk depleting your nest egg if your annual withdrawal rate exceeds about 6 percent.
Stay away from funds that are not members of reputable families: Unless you know the manager has an excellent record. In particular, avoid tiny funds those with assts less than 400 million unless they are promising members of an established group
77
Dont assume that laggard funds will bounce back: Long term losers have perennially poor performance records, along with outsized expenses, a small and declining asset base, high portfolio turnover and, sometimes, legal problems.
Dont look to your nest egg for thrills and excitement: Some times, relatively dull investments, such as index funds, are best.
Keep in minds that about 70 percent of actively managed funds under perform the market: because operating expenses, transaction costs and cash holdings lower returns. This represents the main argument in favor of index funds.
Favor index funds for a meaningful core portion of your stock allocation:
say 25 to 50 percent or so. With these portfolios you need not worry that a fund manager might jump ship. With a passive approach, it doesnt matter so much whos in control.
Beware of gimmicks when shopping for an index fund: Avoid enhanced index portfolios that claim they can outperform the sensex or other benchmarks. Plain vanilla products with rock bottom costs are best.
Include small cap and international funds in your portfolio for better risk adjusted performance: Younger investors with long time horizons should take a significant stake in these categories.
Look beyond a funds name to its actual investment policies and portfolio holdings.
Avoid small stock portfolios with assets greater than 20,000 million or so unless youre convinced the management is exceptionally talented.
Keep in mind that small stocks move in cycles of five to seven years, during which they either outperform or underperform the large blue chips.
Conversely, do take bigger positions in small stocks when theyre cheap:
Small companies represent excellent value when the PE of any funds approximates that of the sensex.
Dont hesitate to venture abroad: International investing is a great way to round
out a portfolio, since about two-thirds of world stock market values exist outside India.
Lean to international rather than global funds for your over-seas exposure:
The former invest exclusively in foreign markets, whereas the latter have stakes in
78
stateside stocks as well. With international funds, you can fine tune your
overseas
exposure more precisely.
Check the foreign weightings of your domestic stock funds: which could hold up to 15 percent or more of their assets in non- Indian issues to try to improve performance. You may already have more international exposure than you think.
Maintain modest stake in emerging stock markets: as well if you have a lengthy investment horizon. Developing nations offer exciting long term growth potential.
Dont expect international diversification to reduce your portfolios volatility all the time: Normally, it works reasonably well, but during a global panic, all the worlds major stock exchanges could tumble together .
CONCLUSION:
I order to study the concept of mutual fund we should note that a mutual fund is a trust that pools the money of several investors and manages investments on behalf. The fund collects this money from investors through various schemes. Each schemes is differentiated by its objectives of investments or in other words a broadly defined purpose of how the collected money is going to be involved.
79
Investors invest in mutual fund due to following advantages: they have professional management, diversification, convenient administration, return potential, low cost, liquidity.
By comparing the above mentoined schemes I came to know the risk and return relation between the specified schemes. Therefore investors before investing in any Mutual Fund schemes they should study the risk and return relation. And if the risk and returns is been matched with their planning, then only the investors should go for Mutual Fund schemes.
So the future of mutual funds in India is bright, because it meets investor s needs perfectly. This will give boost to Indian investors and will attract foreign investors also. It will lead to the growth of strong institutional framework that can support the capital markets in the long run.
BIBLIOGRAPHY:
www.indiainfoline.com
www.amfiindia.com
www.mutualfunds.com
www.investopidia.com
80
MUTUAL FUNDS IN INDIA
BY: Nalini Prava Tripathy
AMFI WORK BOOK
81
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A PROJECT REPORT

INDIA INFOLINE, PUNE

NIKITA BHARAT CHINCHANE

MBA Semester III

Project Guide Prof. VAISHAMPAYAN

FINDINGS AND ANALYSIS

ABOUT INDIA INFOLINE

INTRODUCTION OF MUTUAL FUND

COMPARISON OF MUTUAL FUND

For this I have taken the following parameters:

Analyzing Mutual Fund using:-

4. Schemes selected for project:-

Secondly, to compare and evaluate the performance of different schemes of mutual

fund companies on the basis of risk, return and volatility

basis of risk, volatility and return.

FINDINGS AND ANALYSIS:

ABOUT THE COMPANY

India Infoline Ltd:

Followed by other regions.

The subsidiaries of India Info line Ltd are:

India Infoline Securities Pvt Ltd:

India Infoline Commodities Pvt Ltd:

India Infoline Distribution Co Ltd (IILD):

Mortgages & Loans:

India Infoline Insurance Services Ltd:

India Infoline Investment Services Ltd:

Management of India infoline:

Mr. Nirmal Jain

The Board of Directors

Mr Sat Pal Khattar (Non Executive Director)

Mr Sanjiv Ahuja (Independent Director)

Mr Nilesh Vikamsey (Independent Director)

Mr Kranti Sinha (Independent Director)

INTRODUCTION TO MUTUAL FUND

ORGANIZATION OF A MUTUAL FUND

Organization of a Mutual Fund

SEBI regulations required that at least two thirds of the directors of

MAJOR MUTUAL FUND COMPANIES IN INDIA

ABN AMRO MUTUAL FUND

BIRLA SUN LIFE MUTUAL FUND

Rs.10, 000 crores.

BANK OF BARODA MUTUAL FUND

HDFC MUTUAL FUND

ING VYSYA MUTUAL FUND

PRUDENTIAL ICICI MUTUAL FUND

SAHARA MUTUAL FUND

STATE BANK OF INDIA MUTUAL FUND

TATA MUTUAL FUND

KOTAK MAHINDRA ASSTE MANAGEMENT COMPANY

UNIT TRUST OF INDIA MUTUAL FUND

RELIANCE MUTUAL FUND

STANDARD CHARTERED MUTUAL FUND

FRANKLIN TEMPLETON MUTUAL FUND

MORGAN STANLEY MUTUAL FUND

ESCORT MUTUAL FUNDS

ALLAINCE CAPITAL MUTUAL FUND

BENCHMARK MUTUAL FUND

CAN BANK MUTUAL FUND

CHOLA MUTUAL FUND

LIC MUTUAL FUND

GIC MUTUAL FUND

Types of Mutual Funds