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Regional College of Management Autonomous

Chakadola Vihar, Chandrasekharpur Bhubaneswar - 751023, Orissa

An Project Report On Organisation Study And Risk And Return of Mutual fund With

Submited By Manoj Das Gupta (1001247109)

UNDER THE GUIDANCE AND SUPERVISION OF

PROF. VISHWAJIT RAWAT SENIOR PROFESSOR RCMA

MR. RAKESH KASHWANI BRANCH MANAGER RELIGARE SECURITIES LTD

Certificate

This is to certify that this report is the result of Internship undergone by Manoj Das Gupta the register number 1001247109 at RELIGARE SECURITIES LIMITED, under the guidance and supervision of PROF.VISHWJIT RAWAT. This has not formed a Basis for the award of any degree/diploma for any college.

Place: Bhubaneswar Date:

PROF:VISHWJIT ROUT (FACULTY GUIDE)

Guides Certificate
This to certify that this report titled An Organizational study and risk and return analysis of mutual funds at Religare securities Limited is the result of Internship undertaken by MANOJ DAS GUPTA bearing the register number 1001247109 at RELIGARE SECURITIES Limited, Varanasi, under my guidance and supervision. This has not formed a basis for the award of any degree/ diploma for any university.

Place: Bhuwaneswar Date:

(MANOJ DAS GUPTA) Reg.No: 1001247109

Acknowledgment

The internship training which I underwent for last 5 weeks at Religare securities limited from 23rd May 2011 to 30th June 2011 has been most enthralling weeks of my life. It was a great pleasure to work in one of the major financial service providing firm. This project is made successful by the combining efforts of a no. of officials whose knowledge and experience have helped me a lot. This project cannot completed unless and until, I fulfil my duty of thanking those persons to whom I deeply indebted. I wish to express my deep gratitude towards them to their whole hearted support and existence. Firstly I would like to thank PROF: PRABIR PAL DIRECTOR, Regional College of Management Autonomous, Bhuwaneswar, who has given his valuable support during my Internship. I am also extremely thankful to Prof VISHWAJIT RAWAT, Regional College of Management Autonomous, who has guided me to do this project by giving valuable suggestion and advice.

Further, I am grateful to Mr. RAKESH KASHWANI Branch manager Religare securities limited to allow me to go my internship in their organization. They all guided during the training period and helped me in each and every step to prepare this report.

At the end I am also thankful to my friends to help me in preparing my report.

Contents

PART A

EXECUTIVE SUMMARY RELIGARE ENTERPRISES LIMITED AN INTRODUCTION PROMOTERS MISSION AND VISION STATEMENTS INDUSTRY PROFILE SUBSIDIARIES COMPANIES OF RELIGARE ENTERPRISE LIMITED THE REGISTERED OFFICE OF RSL BOARD OF DIRECTORS OF RSL KEY PERSONS OF RELIGARE SECURITIES LIMITED FINANCIAL PERFORMANCE OF RELIGARE SECURITIES LIMITED STRATEGY THE RELIGARE EDGE PRODUCT PORTFOLIO IN RELIGARE ENTERPRISE LIMITED PRODUCTS OFFERED BY RELIGARE SECURITIES LIMITED ORGANIZATION STRUCTURE BRANCH STRUCTURE DEPOSITORY PARTICIPANT SERVISES MUTUAL FUNDS INSURANCE MARKETING SWOT ANALYSIS STRENGTHS WEAKNESS OPPORTUNITIES THREATS

SUGGESTIONS AND RECOMMENDATIONS BIBLIOGRAPHY

Content

PART B

INTRODUCTION TO MUTUAL FUND BACKGROUND OF THE STUDY CONCEPT OF MUTUAL FUND SCHEMES OF MUTUAL FUNDS ADVANTAGES OF MUTUAL FUND DISADVANTAGES OF MUTUAL FUND RISK INVOLVED IN MUTUAL FUNDS STATEMENT OF THE PROBLEM OBJECTIVES OF THE STUDY SCOPE OF THE STUDY LIMITATIONS OF THE STUDY RESEARCH DESIGN SAMPLE DESIGN CALCULATION OF RETURN AND RISK OF SELECTED MUTUAL FUND SCHEMES CALCULATED RISK AND RETURN OF DIFFERENT MUTUAL FUNDS INTERPRETATION FINDINGS & RECOMMENDATIONS CONCLUSION BIBLIOGRAPHY

Executive summary

The P.G.D.M course offered by the REGIONAL COLLEGE OF MANEGEMENT AUTONOMOUS BHUWANESWAR has from its 5 own unique syllabus that requires its P.G.D.M students to undertake an internship with any of the leading business houses for a period ranging weeks to 6 weeks. The purpose of this internship is to enable the students to appreciate and understand the practical world vis--vis the theoretical input administered during regular academic sessions. This helps in creating Managers who are equipped with the experience of linking the theoretical inputs with those of practical exposure and come out with creative solutions / ideas in Enhancing the business. In partial fulfilment of PG.D.M degree of RCMA . The company chosen was Religare securities limited. Religare is one of the leading equity and securities firm in India. The company currently handles almost 4-5% of the total volumes traded on NSE and in the realm of online trading and investments it currently holds a share of close to 8% of the market, as per some recent published reports. This project is a study of organizational structure in RELIGRE SECURTIES LTD and the RISK AND RETURN ANALYSIS OF MUTUAL FUNDS.

PART A ORGANIZATIONAL STUDY

RELIGARE ENTERPRISES LIMITED


VALUES THAT BIND

An Introduction

Religare

is

financial

services

company

in

India,

offering

a wide range of financial products and services targeted at retail investors, high net Religare They is worth individuals by 7 the and corporate of and and institutional Laboratories clients. Limited. and

promoted from

promoters offices

Ranbaxy 43

operate

regional

sub-regional

offices

have a presence in 498 cities and towns controlling 1837 locations managed by them and their Business Associates all over India, as well as a representative office in London. While the majority of their offices provide the full complement of our services, they also have dedicated offices for clients investment banking, institutional brokerage, portfolio management services and priority client services.

They employed approximately 10,000 fulltime employees as on March 31, 2011. Their employees are broadly categorized into seven departments: sales, operations, technology, risk management, research, administration and support.

Registered and Corporate Office of the Company

Registered Office Address:-

Delhi: D3,P3B,District Centre, Saket, New Delhi - 110017, India. T: +91-11-3912-5000 F: +91-11-3912-6050 Corporate Office Address:Noida: A-3, 4, 5, Sector-125, Noida, Uttar Pradesh - 201 301, India. T: +91-0120-339-1000 Mumbai: GYS Infinity, Paranjpe B Scheme, Subhash Road, Near Garware House, Vile Parle (E), Mumbai - 400057 T: +91-022-6673-7100

Promoters
The following individuals are the Promoters of the Company:

1. Mr. Malvinder Mohan Singh; and 2. Mr. Shivinder Mohan Singh.

Mr. Malvinder Mohan Singh

Chairman and one of our Promoters, graduated in Economics from St. Stephens College, Delhi and holds an MBA degree from the Fuqua School of Business, Duke University, U.S.A. Mr. Singh is the CEO and managing director of Ranbaxy Laboratories Limited. Mr. Singh joined Ranbaxy Laboratories Limited in 1998 and worked through various functions of general management, sales and marketing, finance and business development. Prior to being appointed as CEO and managing director of Ranbaxy Laboratories Limited (RLL),he was RLLs global operations, responsible for as President Pharmaceuticals. Mr. Singh is also a

member of the National Council for the CII and is co-chairman of the CII National Committee on Intellectual Property Rights, Research and Development, Technology and Innovation. Further, Mr. Singh is a member of the Young Global Leaders Forum, which is an initiative of the World Economic Forum. Mr. Singh is on the Board of Visitors of Duke University and member of the Board of Trade, Ministry of Commerce and Industry, Government of India. As the Director of the Company,

he has been responsible for advising and counselling management on corporate decisions, providing strategic guidance and oversight, approving managements business plans, and monitoring the Companys performance against the strategic business plans, overseeing management of the business on a regular basis, ensuring ethical behaviour and compliance with various laws and regulations.

Mr. Shivinder Mohan Singh One of their Promoters, graduated with a B.A. (Hons.) degree in mathematics from St. Stephens College, Delhi and Singh holds is an on MBA the degree of with specialization of RLL, in health of sector Aspens management from the Fuqua School of Business, Duke University, U.S.A. Mr. board directors fellow India Leadership Initiative and board of visitors of Fuqua School of Business, Duke University, U.S. He held the position of Chief Operating Officer of the Fortis Hospital, Mohali for two years, during which he led his team in developing a strong work culture. He has also led the acquisition of Escorts Heart Institute & Research Centre has Limited been (EHIRCL) by Fortis Healthcare Limited and is currently the managing director of EHIRCL. As the Director of the Company, he providing business basis, strategic plans, and ethical guidance and oversight, the responsible for advising and counselling management on corporate decisions, approving managements monitoring behaviour Companys performance against the

strategic business plans, overseeing management of the business on a regular ensuring and compliance with various laws and regulations.

MISSION AND VISION STATEMENTS

Vision
To in the build Religare as a globally and trusted present brand it

financial

services

domain

as the Investment Gateway of India

Mission
Providing financial care driven by the core values of diligence and transparency.

Brand Essence
Religare is wealth creation driven by ethical and dynamic processes for

INDUSTRY PROFILE
India is one of the fastest growing economies in the world with a rapidly expanding financial services sector. After

adjustments for purchasing power parity, Indias economy is the fourth largest in the world in terms of Gross Domestic Product (GDP). An efficient securities market provides the necessary channel for flow of resources from the providers of capital to the users of capital for economic development. The overall growth of the economy and activity are also important of resources. factors, which determine availability

Indian Finacial Sector

The Indian financial services industry has Experienced significant growth in the last few years. There has been a considerable broadening and deepening of the Indian financial markets due to various financial market reforms undertaken by the Indian regulators, the introduction of innovative financial instruments in recent years and the entry of sophisticated domestic and international financial services participants. Sectors such as banking, asset management and brokerage have been liberalized to allow private sector involvement, which has contributed to the development and modernization of the financial services sector.

This is particularly evident in the non-banking financial services sector, such as brokerage, residential mortgage and insurance services, where new products and expanding delivery channels have helped these sectors to achieve high growth rates recently.

Financial services accounted for approximately 14% of total GDP in fiscal 2007. The combined average daily turnover of the BSE and the NSE for different market segments has increased from approximately Rs. 4.8 billion in March 1996 to approximately Rs. 312.1 billion in March 2006. Over this period, there has also been a substantial growth in the market for other financial products such as insurance, and mutual funds.

Industry Outlook
Existing low penetration levels, increasing affordability of

credit and rising income levels have led to a growing demand for retail financial products. India has a substantial retail investor base throughout the country that has a large pool of untapped surplus funds. The market confidence of small investors has increased with growing levels of education and financial awareness, and the strengthening of regulatory systems. The financial services industry is undergoing consolidation. In the future, it is expected that market share will be captured by financial services providers who can offer a complete range of financial products and services.

COMPANYS HISTORY
Religare enterprise limited:Religare was originally incorporated as Vajreshwari Cosmetics Private Limited on January 30, 1984. The name of the Company was subsequently changed to Religare Enterprises Private Limited pursuant to a special resolution of our shareholders dated January 10, 2006. The fresh certificate of incorporation consequent to the change of name was granted to our Company on January 31, 2006, by the Registrar of Companies, Punjab, Himachal Pradesh & Chandigarh at Jalandhar. The status of our Company was changed to a public limited company by a special resolution of the members dated July 14, 2006. The fresh certificate of incorporation consequent to the change of name was granted to their Company on August 11, 2006, by the Registrar of Companies, NCT at New Delhi. Historically, they conducted business as separate companies. Their business was carried on by Fortis Securities Limited, Fortis Comdex Limited and Fortis Finvest Limited, some of which were subsidiaries of certain of their Promoter Group companies. In order to integrate their financial services operations under the Religare name, the Company acquired a controlling stake in Fortis Securities Limited, Fortis Comdex Limited and Fortis Finvest Limited and subsequently, acquired a 100% stake in these entities and in Religare Insurance Broking Limited and Religare Venture Capital Private Limited. These entities are now their Companys subsidiaries.

SUBSIDIARY COMPANIES RELIGARE ENTERPRISE LIMITED

OF

Subsidiaries companies of Religare enterprise limited


Religare AMC Limited

Religare Finvest Limited

Asset Management Business Portfolio Management

Lending and Distribution business

AEGON Religare Life Insurance Co. Ltd.

Religare Insurance Broking Limited


Life Insurance Company, JV with Aegon(26%), Religare(44%), and Bennett & Coleman(30%)

Life Insurance Broking Business Non-Life Insurance Broking Business

Religare Macquarie Wealth Mgmt. Ltd.

Religare Arts Initiative Limited


JV with Macquarie for Wealth Management Business

Business of Art Art Gallery Art Advisory

Religare Securities Limited


Religare Venture Capital Limited

Retail Equity Broking Online Investment Portal Depository Services

Private Equity and Investment Manager

Religare Commodities Limited

Religare Insurance Holding Company Limited

Commodity Broking Business

Religare Capital Markets Limited


PE and M&A Advisory Institutional Broking Investment Banking

Religare Realty Limited (RRL):-

Religare Finance Ltd.

Capital Market Financing

BOARD OF DIRECTORS OF RSL


The Board of Directors of RSL currently comprises the following persons:

Mr. Sunil Godhwani Chairman and Managing Director Mr Shachindra Nath Group CEO Mr. Anil Saxena Chief Financial Officer Mr. Harpal Singh Non Executive Director Mr. Deepak Ramchand Sabnani Independent Director Ms. Kathryn Matthews Independent Director Mr. Padam Bahl Independent Director Mr. J. W. Balani Independent Director Ms. Sunita Naidoo Independent Director Mr. Stuart D Pearce Independent Director Mr. R. K. Shetty Alternate to Mr. J. W. Balani Capt. G. P. S. Bhalla Alternate to Mr. Deepak Sabnani

Key persons of Religare securities limited:Mr.Sunil Godhwani is the CEO and Managing Director of our Company. He is a Graduate in chemical engineering and has a master degree in industrial engineering and finance from Polytechnic Institute, New York. He has more than 20 years experience in business. Mr. Godhwani joined our Board on July 13, 2006. He was appointed as CEO And Managing Director of our Company on April 9, 2007. Mr.Godhwani is also the managing director of Fortis Financial Services Limited. Prior to becoming the Managing Director of our Company,

Mr. Shachindra Nath (Group Chief Executive Officer) Religare Enterprises Ltd., aged 39 years, carries the overall responsibility for managing all pivotal operations of the group. He is associated with Religare since the year 2000 and is prominently known as a dynamic strategist.Mr. Nath started his professional career immediately after his graduation at theage of 21 years and worked as Commercial Trainee with Garware Wall Ropes, after which alongside his legal studies worked as consultant to gain hands on experience in Finance, Costing and Taxation. He then moved to run a Non Woven Plant with a Carpet Export Company. He has over 16 years of experience in the financial services industry.

Mr Anil Saxena (Chief Financial Office) plays a crucial role as the preserver of assets, cost and value-adding growth as he takes the final call in managing prosperity, funding the groups aggressive growth plans and keeping the faith of the stakeholders, our biggest asset. He is responsible for ensuring that investments give stable growth, good corporate affairs and risk management. He received Bachelors degree in Commerce from the University of Delhi. He is a member of the Institute of Chartered Accountants of India as well as the Institute of the Cost and Works Accountants of India. He has over 16 years of experience in the financial services industry and is with Religare since the past 9 years.

Financial Performance of Religare securities limited:Balance sheet


Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity sharesoutstanding (Lacs) 2,629.83 1,025.74 493.99 20.89 380.01 11.28 585.01 34.87 92.03 760.84 262.80 29.78 30.00 643.97 500.00 87.85 179.54 -91.69 496.81 5.10 491.71 21.42 10.57 10.86 7.53 5.56 1.97 291.79 0.04 0.06 -0.02 72.50 25.67 4.54 21.12 3.73 0.36 3.37 0.01 0.56 0.05 0.51 0.07 0.01 0.01 289.81 72.52 22.22 75.40 3.50 291.79 18.85 72.50 127.81 0.18 25.00 76.29 25.00 76.08 405.24 64.40 223.89 50.00 3.65 1,800.16 -

(Rs crore)
Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

2,408.07 617.19

2,583.28 2,518.64 556.72

2,653.85 2,023.55 545.28

2,583.28 2,518.64 556.72

1278.14 762.90

STRATEGY

Increase geographical presence:-

They intend to further expand the scale of their operations, explore new distribution channels and increase their reach and client base domestically and internationally. They are focused on increasing the

number of our client relationships through our network of offices across India. Their emphasis is on expanding the scale of operations as well as growing network in the smaller Indian cities, which they believe present attractive opportunities to grow their client base and revenues. They also intend to establish offices in key overseas markets, including the Middle East and Western Europe. As the global profile of the Indian financial markets overseas services. improves, institutional Their they and expect to experience Indian be significant in interest Indian their from

non-resident emphasis

investors on

financial proposed for their

initial as

will

using

international

offices

supplementary

distribution

channels

offerings in the Indian markets and on channelling Indian investments in the international our financial markets. in Our long-term international by strategy up

includes

participation

overseas

financial

markets

setting

regulated financial services companies in such jurisdictions.

Expand our Internet-based delivery

They plan to significantly enhance our on-line trading capabilities our and other have established and their on-line offerings. trading They system also to

complement

products

services

have

established a dedicated advisory desk for on-line services and a sales force of direct marketers that they expect in the next several months to increase to 2,500 covering technological significant that an platform in and 100 cities. They believe that we have the systems in place to accommodate and clients. and service

increases

on-line

trading

accounts product

They believe will enable

Internet-based,

easily scalable

delivery model

us to respond effectively to the competitive challenges of discount equity brokerages and eventually move into delivering a wider range of products and services on-line.

Grow existing product lines and expand our products and services portfolio:They seek continually to introduce new products that provide clients access to a range of financial products and services to suit their varied needs. In addition to growing our traditional equity brokerage business, we intend to develop their recent initiatives such as

commodities services.

and are

insurance establishing

brokerage separate

and subsidiaries

personal to handle

credit different

They

product lines which we expect will form significant parts of our business going will forward. be In particular, in and we intend Wealth that wealth management Services will be services Limited; located in be this possibly already

located banking

Religare

Management services

investment

transaction

advisory

Religare Capital Markets Limited; and PLS and other consumer lending will located in Religare will enable us Finance to and better Limited. develop We these believe businesses, We have

reorganization in conjunction

with

Indian

international

partners.

applied to SEBI to sponsor an AMC in a joint venture with Aegon International N.V., a global provider of insurance and pension services.

Continue to develop client relationships:We plan to grow our business primarily by growing the number of client relationships as we believe that increased client relationships will add stability to our business. We seek to build on existing relationships and also focus on bringing into our portfolio major, multi-national corporations, large profitable public sector corporations and middle market companies. We also believe that the rapid growth in the middle market company sector offers us a significant opportunity to provide a wide variety of financial services and products to this segment. We also seek to offer our clients diversified products and services to increase our revenues percentage.

Strategic acquisitions and alliances:They seek to pursue strategic acquisition opportunities to enhance our capabilities, their address and specific technical an industry opportunities grow base. to their The

enhance operations Indian

further

industry

expertise, client

geographically and brokerage industry

benefit is

from

expanded

experiencing

significant

consolidation

involving the growth of corporate brokerage houses and increasing marginalization of small and regional brokers. Stricter regulatory and higher capital requirements have hastened this process, which provides opportunities for well-capitalized,

professionally-managed corporate brokers, such as us, to acquire smaller participants and brokers associated with regional exchanges. We intend to target selectively such brokers for acquisition to expand our retail business.

The Religare edge


Pan India footprint Ethical business practices Nationwide presence including Mandi Locations for in-depth and firsthand information Offline/Online delivery models Powerful research and analytics supported by a pool of highly skilled Research Analysts Single window for all investment needs through your unique CRN

PRODUCT PORTFOLIO

Product portfolio in Religare enterprise limited:They have divided our product and service offering under three broad client interface categories: Retail Spectrum, Wealth Spectrum and Institutional Spectrum.

Retail Spectrum:- covers equity brokerage services, commodity brokerage services, personal financial services (financial planning for the retail investor, including the distribution of mutual funds, savings products, life insurance and initial public offerings (IPOs) and personal credit (personal loans services (PLS) and loans against shares (LAS)).Retail Spectrum focuses on clients who keep less than Rs. 2.5 million on a continuing basis, in the form of either equity trading account margin, mutual fund investment, portfolio management investments or insurance premiums paid up. Wealth Spectrum:- covers products and services which are geared to service high net worth individuals and provide wealth advisory services (on an asset allocation model), PMS (discretionary equity investments), priority client equity services (non-discretionary equity trading services), art initiatives (an art fund which they intend shortly to launch as an investment diversification product) and international equity investment advisory services. equity trading account margins, mutual Wealth Spectrum focuses on investments, portfolio clients who keep at least Rs. 2.5 million on a continuing basis or more in the form of fund management investment or insurance premiums paid up. Institutional Spectrum:- covers products and services which cater under one service offering to corporate and institutional clients, including domestic mutual funds, FIIs, banks and corporate customers.The Institutional Spectrum provides services to the institutional investor community through institutional brokerage and investment banking services. We also link corporate clients with a transaction advisory group,which consists of account managers through whom institutional clients are able to access the full range of our services.

Products offered by Religare securities limited:-

-Equity & Derivatives -Depository -Portfolio Management - International Advisory -Institutional Broking - Investment Banking Services Services

Equity and derivatives:-Trading in Equities with Religare truly empowers you for your investment needs. A highly process driven, diligent approach backed by powerful Research & Analytics and one of the best in class dealing rooms ensures that you have a superlative experience. Further, Religare also has one of the largest retail networks, with its presence in more than 900 locations across more than 320 towns & cities. This means, you can walk into any of these branches and connect to our highly skilled and dedicated relationship managers to get the best services. You could also choose to enjoy the freedom to execute your own trade through our online mechanism. Depository:-RSL provides depository services to investors as a Depository Participant India Limited links with NSDL and CDSL. The Depository system in issuers, and Depository clearing Participants, houses / Depositories clearing National of

Securities Depository Limited (NSDL) and Central Depository Services (India) (CDSL) Corporation Stock Exchanges. These facilitate holding of securities in dematerialized form and securities transactions are processed by means of account transfers.

Portfolio Management Services


They are registered with SEBI to provide PMS. They offer fully discretionary portfolio management services to provide individualized services for clients for a variety of asset classes to fit the investors specific investment parameters. We currently have five PMS products: Caterpillar, Panther, Tortoise, Elephant and Leo. These products are designed for the varying preferences, objectives, risk tolerance and investment horizons of their customers.PMS operate on a multi-fund manager approach where the fund manager team is headed by a chief investment officer and each scheme is supported by a fund manager and one research analyst with its own operations, risk and customer support team.

Existing products under our PMS are:


Panther Panther is targeted at investors who are willing to take high risks for high returns. It is an aggressive scheme that is positioned across sectors and market caps and has a high portfolio turnover. Investment strategy includes investments across sectors with a view to take advantage of various market conditions and identifies stocks which have high volatility buy potential. This product also aggressively uses derivatives for hedging and maximizing returns from the portfolio.

Tortoise Tortoise aims to achieve gradual growth in portfolio value over a period of time by way of careful and judicious investment in fundamentally strong and attractively valued shares. It is a moderate scheme that promises medium risks and medium returns along with medium portfolio turnover. Its investment strategy includes investment across sectors to take advantage of lower valuation of companies with high growth potential and a consistent track record over a longer period of time.

Elephant Elephant aims to generate steady returns over a longer investment horizon by investing in securities selected from the BSE 100 and NSE 100 indices. This plan is suitable for the low risk and low return investor with a strategy to invest in blue chip companies, as these companies have steady performance and reduced liquidity risk in the market. The plan identifies and selects stocks with long-term growth prospects trading at modest relative valuations.

Caterpillar Caterpillar aims to achieve capital appreciation over a long period of time by investing in a diversified portfolio. The scheme offers high risks and high returns but with a low portfolio turnover. Its investment strategy includes investment in shares which are poised to receive a re-rating due to a change in business, potential attractiveness for a particular sector in the future or business diversification leading to a better operating performance. The scheme identifies and selects stocks in the early stages of an upturn and in sectors currently ignored by the market.

Leo
Leo is aimed at retail customers and structured to provide medium to long-term capital appreciation by investing in stocks across the market capitalization range. This scheme is a mix of moderate and aggressive investment strategies. Its aim is to have a balanced portfolio comprising selected Tortoise regulatory limits. investments from both and Panther. Exposure to derivatives is taken within permissible

International Advisory
International Advisory Fund Management Services (AFMS) - A new horizon for international investments: They provide their wealth clients an opportunity to invest in international financial instruments (currently limited to the US). Equities, Mutual Funds and Debts are some of the key instruments available and the clients have the option to choose from various asset allocation modules.

Why Invest Overseas?


Avenues for enhancing returns, minimizing risk and portfolio

diversification Global outreach of opportunities Pre-approved route for resident individuals to invest (Healthy Govt. Patronage and favorable regulatory developments)

Institutional Broking Services:The mission of this division is to institutionalize and implement a process driven approach to cater to the needs of leading corporate houses and institutions.

The division would like to be seen as a one stop investment gateway and knowledge repository for its clients servicing their unique and sophisticated needs. The division is structured as a separate SBU and is housed out of Mumbai, manned by a small yet fleet footed and extremely skilled group of top notch professionals drawn from the best in the industry. The key highlights of our service platter are: Highly skilled, dedicated dealing, research and sales teams Dealing capabilities on the NSE, BSE and in the cash and derivatives segment In-depth, detailed and insightful coverage of more than 60 stocks across diverse sectors. The sectors covered are FMCG, Hotels, Media, Pharma, Auto, Cement, Steel pipes, Logistics, Telecom, Construction and much more.

Investment Banking:-

Their relationships with

investment private

banking equity

professionals firms, other

maintain financial

businesses,

institutions and high net worth individuals and provide them with corporate finance and investment banking advice. They have divided our investment banking business into merchant banking and transaction advisory services. Their investment banking services are being expanded to include underwriting public equity offerings, mergers and acquisitions advisory services, corporate restructuring services, placement of private debt and equity offerings and rendering general investment banking and transaction advisory services. They provide innovative, integrated and best-fit solutions to their corporate customers. It is continuous endeavor to provide value enhancement through diverse financial solutions on an ongoing basis, through offerings like Corporate Debt, Private Equity, IPO, ECB, FCCB, GDR/ADR etc.

Investment Banking with Religare offers the following services:


Corporate Finance
they focus on finding right and relevant partners for their clients , who not only help in adding value but also improve the future valuation of the organization. We specialize in structured financing and providing advisory services related to financial planning, modeling and advising on financial requirements.

Corporate finance products offered by they: Placement of Debt Syndication of Domestic Loan / Foreign Currency Loan Securitization Debt Swap & Loan Restructuring Short Term Corporate Debt Working Capital (Cash Credit & Short term Loan) Capital Market Instruments Overseas Acquisition Placement of Equity (Private Equity) Both for listed and unlisted companies

Merchant Banking
IPO/FPO/RIGHTS Mergers & Acquisitions Corporate Advisory Services ADR/GDR/FCCB BUY BACK OF SHARES

ORGANIZATIONAL STRUCTURE

ORGANIZATIONAL STRUCTURE

Mutual funds and insurance:In addition to the products and services offered by Religare securities a separate section is present in the branch Which handles distribution of mutual funds, life and non-life products. The employees of Religare securities are equipped with the knowledge of other products present in Religare enterprise limited

FUNCTIONS OF DEPARTMENTS
DEPOSITORY PARTICIPANT SERVISES:
FRONT OFFICE:
In front office the following services are done.

shares to physical form

BACK OFFICE:
Maintenance of all demat accounts. Giving intimation related to the due of AMC.s to their account holders. Sends quarterly information to the holders related to the holdings.

MARKETING:
In this department where the demat account is marketed, marketing executives are seeks for prospective customers, they helps in opening of an account and provide other door to door services.

ACCOUNTS:
1. Maintaining the purchases stores department. 2. Internal auditing. 3. Payments and receipts.

MUTUAL FUNDS:MARKETING

Religare has mainly under taken the distribution of financial products at commission basis; part of this mutual fund marketing is also one of the functions. In these functions executives sells almost all the mutual fund schemes. Executives market the mutual fund schemes by

1 direct selling 2. Telemarketing

INSURANCE
MARKETING:
Religare markets all companies life and non-life insurances products Such as ICICI, BIRLA SUNLIFE, TATA AIG, LIC etc.

Executives market the insurance products by

1. Direct marketing 2. Tele marketing

BACK OFFICE:
In this department it maintains the necessary records of the clients insurance and mutual funds which are taken by the Religare

SWOT ANALYSIS

Strengths
Regional management for retail branch network Geographical distribution with deep penetration in India Diversified product portfolio Distinctive expertise with focused servicing model Geared to address the competitive challenges of discount

brokerage through online investment portal

Weakness:
Insufficient Not well known Less human resource Advertisement policy

Opportunities:

Increase in the number of investors entering the stock market Growing IPO issues Can make of technology to market product (e-selling).

Threats:
Existing Competitors

Market Uncertainty Broad economic factors like inflation etc.

SUGGESTIONS AND RECOMMENDATIONS


1) Giving Multi department skill, Multi work skill training to employees in order to give the tough competition to competitors and also employees become more skilled.

2)

Competitors like Karvy, Indiabulls, etc. are known better than Religare. The company lacks publicity. A good portion of the general public is not quite aware of the existence of such an investment firm like Religare, which caters to most of the available investing instruments. The company could undertake promotional activities with the general public as the target group. They could make aware of the services they render to the public. This could attract new customers which can be transformed into a long lasting relationship? This could be put into action by having print advertisements in papers like The Economic Times, Business Line, and Financial Express etc. Advertisement in CNBC-India could give a very good brand image to the company. 3) The company acts as a mediatory for most of the

investment options. It gives people access to a wide variety of mutual funds, Insurance schemes etc for third party companies. The company can start its own mutual fund and start investing in stocks, debts and government securities. It has a special and dedicated Research Desk who is into constant monitoring of the share markets. It can take advantage of this and start a separate mutual fund. People will have good confidence in this and the business can also be profitable.

4)

As presently the human resource is less compared to competitors, the operations of the branch can be increased by increasing the human resource.

BIBILOGRAPHY:

. www.religare.in

PART B RISK AND RETURN ANALYSIS OF MUTUAL FUNDS

RESEARCH EXTRACT

In the current economic scenario interest rates are falling and fluctuation in the share market has put investors in confusion. One finds it difficult to take decision on investment. This is primarily, because of investments are risky in nature and investors have to consider various factors before investing in investment avenues. These factors include risk, return, volatility of shares and liquidity. The main objective of comparing investment in different mutual fund schemes is to analyze the performance of mutual funds by using risk, return as a parameter. Historical data were taken for calculating risk, return. Analysis has done on percentage method for comparing mutual fund schemes. Compare to equities mutual funds are less risky with stable returns and mutual funds gives the investor a diversified portfolio. Those who have well knowledge in equity market they can go for equity investments rather that investing in mutual funds because no control on the expenses made by the fund manager. The study will guide new clients who want to invest in mutual fund schemes by providing knowledge about how to measure the risk and return of particular scrip or mutual fund scheme. The study recommends new investors to go for mutual funds rather than equities, because of high risk and market instability.

INTRODUCTION TO MUTUAL FUND


Background of the study
The mutual fund industry in India started in 1964 with the formation of Unit Trust of India, at the initiative of the Government of India. The 1993 SEBI Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996.The end of millennium marks 40 years of existence of mutual funds in this country.The ride through these 40 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 in to existence during a period marked by great political and economic turmoil that depressed the financial market; entrepreneurs were rather hesitant to enter the capital markets.

Concept of Mutual Fund

A mutual fund is a trust that pools the money of many investors:-

Its shareholders to invest in a variety of Different securities. Investments may be in stocks, combination of these bonds, money market securities or some

Those securities are professionally managed on behalf of the shareholders, entitled and to each any investor profits holds when a the prorate share are of the sold, portfolio securities

but subject to any losses in value as well. A mutual fund is a group of investors operating through a fund manager to purchase a diverse portfolio of stocks or bonds. There are myriad kinds of mutual funds, each with its own goals and methodologies. Whether or not a mutual fund is a good investment is a matter of much public debate, with many claiming they are excellent for the average person, and others saying they are simply a poor way to invest. For the individual investor, mutual funds provide the benefit of having someone else manage your investments, take care of recordkeeping for your account, and diversify your rupees over many different securities that may not be available or affordable to you otherwise. Today, minimum investment requirements on many funds are low enough that even the smallest investor can get started in mutual funds. A mutual fund, by its very nature, is diversified its assets are invested in many different securities. Beyond that, there are many different types of mutual funds with different objectives and levels of growth potential, furthering your chances to diversify.

Schemes of Mutual funds. (1) Schemes according to maturity period:A mutual fund scheme can be classified into open-ended scheme or close ended scheme depending on its maturity period.

Open-ended Scheme:
An open-ended fund or scheme is one that is available for subscription and repurchase on a continuous basis. These schemes do not have a fixed maturity period. Investors can conveniently buy and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis.

The key feature of open-end schemes is liquidity.

Close-ended Scheme:
A close-ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The fund is open for subscription only during a specified period at the time of launch of the scheme. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where the units are listed. In order to provide an exit route to the investors, some close-ended funds give an option of selling back the units to the mutual fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor i.e. either repurchase facility or through listing on stock exchanges. These mutual funds schemes disclose NAV generally on weekly basis.

(2) Schemes according to Investment Objective:A scheme can also be classified as growth scheme, income scheme, or balanced scheme considering its investment objective. Such schemes may be openended or close-ended schemes as described earlier. Such schemes may be classified mainly as follows:

Growth / Equity Oriented Scheme:


The aim of growth funds is to provide capital appreciation over the medium to long term. Such schemes normally invest a major part of their corpus in equities. Such fund shave comparatively high risks. These schemes provide different options to the investors like dividend option, capital appreciation, etc. and the investors may choose an option depending on their preferences.

Income / Debt Oriented Scheme:


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, Government securities and money market instruments. Such funds are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets.

Balanced Scheme:
The aim of balanced funds is to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. These are appropriate for investors looking for moderate growth. They generally invest 40-60% in equity and debt instruments. These funds are also affected because of fluctuations in share prices in the stock markets. However, NAVs of such funds are likely to be less volatile compared to pure equity funds.

Money Market or Liquid Fund:


These funds are also income funds and their aim is to provide easy liquidity, preservation of capital and moderate income. These schemes invest exclusively in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-banks call money, government securities, etc. Returns on these schemes fluctuate much less compared to other funds. These funds are appropriate for corporate and individual investors as a means to park their surplus funds for short periods.

Gilt Fund:
These funds invest exclusively in government securities.

Government securities have no default risk. NAVs of these schemes also fluctuate due to change in interest rates and other economic factors as is the case with income or debt oriented schemes.

Index Funds:
Index Funds replicate the portfolio of a particular index such as the BSE Sensitive index, S&P NSE 50 index (Nifty), etc, these schemes invest in the securities in the same weight age comprising of an index. NAV.s of such schemes would rise or fall in accordance with the rise or fall in the index, though not exactly by the same percentage due to some factors known as "tracking error" in technical terms. Necessary disclosures in this regard are made in the offer document of the mutual fund scheme.

Sector Specific Schemes:


These are the funds/schemes which invest in the securities of only those sectors or industries as specified in the offer documents. E.g. Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the performance of the respective sectors/industries.

Tax Saving Schemes:


These schemes offer tax rebates to the investors under specific provisions of the Income Tax Act, 1961 as the Government offers tax incentives for investment in specified avenues. e.g. Equity Linked Savings Schemes (ELSS).

Pension schemes launched by the mutual funds also offer tax benefits. These schemes are growth oriented and invest pre-dominantly in equities. Their growth opportunities and risks associated are like any equity oriented scheme.

Advantages of Mutual Fund :


1. Professional Investment Management:By pooling the funds of thousands of investors, mutual funds provide full-time, high level professional management that few individual investors can afford to obtain independently. Such management is vital to achieving results in today's complex markets. Your fund managers' interests are tied to yours, because their compensation is based not on sales commissions, but on how well the fund performs.

2. Diversification:Mutual funds invest in a broad range of securities. This limits investment risk by reducing the effect of a possible decline in the value of any one security. Mutual fund shareowners can benefit from diversification techniques usually available only to investors wealthy enough to buy significant positions in a wide variety of securities.

3. Low Cost:If you tried to create your own diversified portfolio of 50 stocks, you'd need at least Rs.1, 00,000 and you'd pay thousands of rupeesin commissions to assemble your portfolio. A mutual fund lets you participate in a diversified portfolio for as little as Rs.10, 000, and sometimes less. And if you buy a noload fund, you pay or no sale charges to own them.

4. Convenience and Flexibility:You own just one security rather than many, yet enjoy the benefit of a diversified portfolio and a wide range of services. Fund managers decide what securities to trade, clip the bond coupons, collect the interest payments and see that your dividends on portfolio securities are received and your rights exercised.

5. Quick, Personalized Service:Most funds now offer extensive websites with a host of shareholder services for immediate access to information about your fund account. Or a phone call puts you in touch with a trained investment specialist at a mutual fund company shares. who can provide information you can use to make your own investment choices, assist you with buying and selling your fund

6. Ease of Investing:You may open or add to your account and conduct transactions or business with the fund by mail, telephone or bank wire. You can even arrange for automatic monthly investments by authorizing electronic fund transfers from your checking account in any amount and on a date you choose.

7. Total Liquidity, Easy Withdrawal:You can easily redeem your shares anytime you need cash by letter, telephone, bank wire or check, depending on the fund. Your proceeds are usually available within a day or two.

8. Life Cycle Planning:With no-load mutual funds, you can link your investment plans to future individual and family needs and make changes as your life cycles change. You can invest in growth funds for future college tuition needs,then move to income funds for retirement, and adjust your investments as your needs change throughout your life.

9. Market Cycle Planning:For investors who understand how to actively manage their portfolio, mutual fund investments can be moved as market conditions change. You can place your funds in equities when the market is on the upswing and move into money market funds on the downswing or take any number of steps to ensure that your investments are meeting your needs in changing market climates.

10. Investor Information:Shareholders receive regular reports from the funds, including details of transactions on a year-to-date basis. The current net asset value of your shares (the price at which you may purchase or redeem them) appears in the mutual fund price listings of daily newspapers. You can also obtain pricing and performance results for the all mutual funds at this site, or it can be obtained by phone from the fund.

11. Periodic Withdrawals:If you want steady monthly income, many funds allow you to arrange for monthly fixed checks to be sent to you, first by distributing some or all of the income and then, if necessary, by dipping into your principal.

12. Dividend Options:You can receive all dividend payments in cash. Or you can have them reinvested in the fund free of charge, in which case the dividends are automatically compounded. This can make a significant contribution to your longterm investment results.

13. Automatic Direct Deposit:You can usually arrange to have regular, third-party payments such as Social Security or pension checks -- deposited directly into your fund account. This puts your money to work immediately, without waiting to clear your checking account, and it saves you from worrying about checks being lost in the mail.

14. Recordkeeping Service:With your own portfolio of stocks and bonds, you would have to do your own record keeping of purchases, sales, dividends, interest, short-term and long-term gains and losses. Mutual funds provide confirmation of your transactions and necessary tax forms to help you keep track of your investments and tax reporting.

15. Safekeeping:When you own shares in a mutual fund, you own securities in many companies without having to worry about keeping stock certificates in safe deposit boxes or sending them by registered mail. You don't even have to worry about handling the mutual fund stock certificates; the fund maintains your account on its books and sends you periodic statements keeping track of all your transactions.

Disadvantages of Mutual Fund:


There are certainly some benefits to mutual fund investing, but you

should also be aware of the drawbacks associated with mutual funds.

1. No Insurance:Mutual funds, although regulated by the government, are not insured against losses. The Federal Deposit Insurance Corporation (FDIC) only insures against certain losses at banks, credit unions, and savings and loans, not mutual funds. That means that despite the risk-reducing diversification benefits provided by mutual funds, losses can occur, and it is possible (although extremely unlikely) that you could even lose your entire investment.

2. Dilution:Although diversification reduces the amount of risk involved in investing in mutual funds, it can also be a disadvantage due to dilution. For example, if a single security held by a mutual fund doubles in value, the mutual fund itself would not double in value because that security is only one small part of the funds holdings. By holding a large number of different investments, mutual funds tend to do neither exceptionally well nor exceptionally poorly.

3. Fees and Expenses:Most mutual funds charge management and operating fees that pay for the fund's management expenses (usually around 1.0% to 1.5% per year). In addition, some mutual funds charge high sales commissions,

12b-1 fees, and redemption fees. And some funds buy and trade shares so often that the transaction costs add up significantly. Some of these expenses are charged on an ongoing basis, unlike stock investments, for which a commission is paid only when you buy and sell (see Investor Guide University: Fees and Expenses).

4. Poor Performance:Returns on a mutual fund are by no means guaranteed. In fact, on average, around 75% of all mutual funds fail to beat the major market indexes, like the S&P 500, and a growing number of critics now question whether or not professional money managers have better stock-picking capabilities than the average investor.

5. Loss of Control:The managers of mutual funds make all of the decisions about which securities to buy and sell and when to do so. This can make it difficult for you when trying to manage your portfolio. For example, the tax consequences of a decision by the manager to buy or sell an asset at a certain time might not be optimal for you. You also should remember that you trust someone else with your money when you invest in a mutual fund.

6. Trading Limitations:Although mutual funds are highly liquid in general, most mutual funds (called open ended funds) cannot be bought or sold in the middle of the trading day. You can only buy and sell them at the end of the day, after they've calculated the current value of their holdings.

7. Size:Some mutual funds are too big to find enough good investments. This is especially true of funds that focus on small companies, given that there is strict rules about how much of a single company a fund may own. If a mutual fund has $5 billion to invest and is only able to invest an average of $50 million in each, then it needs to find at least 100 such companies to invest in; as a result, the fund might be forced to lower its standards when selecting companies to invest in.

8. Inefficiency of Cash Reserves:Mutual funds usually maintain large cash reserves as protection against a large number of simultaneous withdrawals. Although this provides investors with liquidity, it means that some of the fund's money is invested in cash instead of assets, which tends to lower the investor's potential return.

9. Different Types:The advantages and disadvantages listed above apply to mutual funds in general. However, there are over 10,000 mutual funds in operation, and these funds vary greatly according to investment objective, size, strategy, and style. Mutual funds are available for virtually every investment strategy (e.g. value, growth), every sector (e.g. biotech, internet), and every country or region of the world, so even the process of selecting a fund can be tedious.

Risk Involved in Mutual Funds

All investments involve some form of risk, which should be evaluated them potential rewards when an investment is selected.

Managing risk At times the prices or yields of all the securities in a particular market rise or fall due to broad outside influences. When this happens, the stock prices of both an outstanding, highly profitable company and a fledgling corporation may be affected. This change in price is due to market risk. Interest rate risk sometimes referred to as .loss of purchasing power.Whenever inflation sprints forward faster than the earnings on your investment, you run the risk that you will actually be able to buy less, not more. Inflation risk also occurs when prices rise faster than your returns.

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

Inflation risk Changing interest rates affect both equities and bonds in many ways. Investors are reminded that .predicting. Which way rates will go is rarely successful. A diversified portfolio can help in offsetting these changes. Effect of loss of key professional and inability to adopt an industry.

Key asset

is often the personnel who run the business i.e. intellectual

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

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

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

Changes in government policy


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

Statement of the Problem


In the current economic scenario fluctuation in the share market has put investors in confusion. One finds it difficult to take decision on investment. This is primarily, because investments are risky in nature and investors have to consider various factors before investing in investment avenues. Therefore the study aims at comparing mutual fund schemes in form their risk, return &liquidity and also creating awareness about Mutual Fund Schemes among the investors.

Objectives of the Study


Saving money is not enough. Each of us also need to invest ones savings intelligently in order to have enough money available for funding the higher education of ones children, for buying a house, or for ones own golden years. But the rapidly growing number of investment avenues often led to confusion. Objectives of the study are to provide information to goals and attitude to risk. individual investors regarding their risk, and choosing the best investment options to match their

1. To compare Mutual Fund Schemes in respect of their risk & return. 2. Analyzing the performance of mutual fund schemes. 3. Provide information about pros and cons of investing in Mutual Funds.

Scope of the study.


The project primarily deals with mutual funds, The study is limited to

compare different mutual fund schemes in respect of their risk, & return The study covers 2 sectors (FMGC and infrastructure),Index Fund Sensex Plan and Midcap Fund 12 randomly selected mutual fund schemes(3 for each segment) out of mutual fund industry in India for comparison. The analysis is strictly based on unit price information. Other company performance indicators are not considered. It focuses on every month ending closing prices of during the period from1ST JUNE, 2004 to 31ST JUNE, 2007.

Limitations of the Study


The time period for the project was limited to only one and half month and information provided is limited to the extent of internet and journals

Research Design
The whole study can be termed as comparative study. It is also a desk research hence; there is no field work and collection of primary date for this research. The study centers on comparing different mutual fund schemes in respect of their risk, return and liquidity. However, with the objective and scope of the study in mind, it was decided to base the study on return series of selected mutual fund schemes. Since it is not possible to compare all the Mutual Fund Schemes due to time and resource constraints, sampling techniques were considered. Randomly selected samples will facilitate inference of the population, in our case mutual fund industry in India. Hence by stratified random sampling 12 mutual fund schemes out of whole mutual fund industry were selected. Mutual funds schemes were selected according to their weight age of the FMGC, infrastructure midcap and sensex stocks in the portfolio of schemes. Monthly unit prices of the selected from historical data. In order to avoid bias, at least three years monthly data was decided to be necessary. The reference period is from 1ST JUNE, 2004 to 31ST JUNE, 2007.

Sample Design
1. Relative population: - mutual fund industry in India. 2. Sampling frame:-list of population, elements from which sample

is drawn

3. Method of sampling:

- stratified random sampling.

Stratification or division of population into homogeneous group was done on the basis of mutual fund schemes.
4. Variables: - monthly calculated risk and returns were used for

comparing different mutual fund schemes Sample Size:-12 mutual fund schemes were selected. Sample Description:-

Calculation of Return and Risk of Selected Mutual Fund Schemes Calculation of risk and return of FMGC funds ICICI Prudential FMCG
R 2007 2007 2007 2007 2007 2007 2007 2008 2008 2008 2008 2008 2008 2008 2008 2008 2008 2008 2008 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2010 2010 2010 2010 2010 2010 June July August September October November December January February March April May June July August September October November December January February March April May June July August September October November December January February March April May June 11.11 11.73 12.72 13.16 12.87 15.18 16.72 17.34 17.52 18.06 18.85 20.85 21.48 24.21 27.87 29.72 27.04 29.96 32.48 34.1 35.43 39.46 40.4 36.8 33.25 33.09 36.75 39.06 38.71 41.13 40.47 41.61 39.42 39.07 38.74 41.98 42.45 Total 5.580558056 8.439897698 3.459119497 -2.20364741 17.94871795 10.14492754 3.708133971 1.038062284 3.082191781 4.374307863 10.61007958 3.021582734 12.70949721 15.11771995 6.637961966 -9.01749663 10.79881657 8.411214953 4.987684729 3.900293255 11.37454135 2.382159149 -8.91089108 -9.64673913 -0.48120300 11.06074343 6.285714286 -0.89605734 6.25161457 -1.60466812 2.816901408 -5.26315789 -0.88787417 -0.84463783 8.363448632 1.119580753 3.996363847 r1 3.996363847 3.996363847 3.996363847 3.996363847 3.996363847 3.996363847 3.996363847 3.996363847 3.996363847 3.996363847 3.996363847 3.996363847 3.996363847 3.996363847 3.996363847 3.996363847 3.996363847 3.996363847 3.996363847 3.996363847 3.996363847 3.996363847 3.996363847 3.996363847 3.996363847 3.996363847 3.996363847 3.996363847 3.996363847 3.996363847 3.996363847 3.996363847 3.996363847 3.996363847 3.996363847 3.996363847 r-r1 1.584194209 4.443533851 -0.53724435 -6.20001126 13.9523541 6.148563689 -0.28822987 -2.95830156 -0.91417206 0.377944016 6.613715729 -0.97478111 8.71313336 11.1213561 2.641598119 -13.0138604 6.802452721 4.414851106 0.991320882 -0.09607059 7.378177502 -1.61420469 -12.9072549 -13.6431029 -4.47756685 7.06437958 2.289350439 -4.89242119 2.255250723 -5.60103197 1.179462439 -9.25952174 -4.8842380 -4.84100167 4.367084785 -2.87678309 Total SD (r-r1)2 2.509671291 19.74499309 0.288631492 38.44013967 194.668185 37.80483544 0.083076461 8.75154814 0.835710567 0.142841679 43.74123574 0.950198219 75.91869294 123.6845616 6.978040623 169.3605647 46.27336302 19.49091029 0.982717091 0.009229559 54.43750325 2.605656809 166.59723 186.1342589 20.04860494 49.90545885 5.241125431 23.93578515 5.086155823 31.37155916 1.391131644 85.73874289 23.85578106 23.43529723 19.07142952 8.275880972 1497.790748 6.450216939

Return=(P1/P0*100)-100 Where, P1 = Current month price, P0 = Previous month price R1= R/n, where n=number of months. R1= 3.9963638 SD=(R-R1)2/n =1497.790748/36 = 6.450216939

Risk and return of ICICI Prudential FMCG

Factor Risk Return

Percentage 6.450216939 3.9963638

SBI Magnum Sector Umbrella FMCG

R 2007 2007 2007 2007 2007 2007 2007 2008 2008 2008 2008 2008 2008 2008 2008 2008 2008 2008 2008 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2010 2010 2010 2010 2010 2010 June July August September October November December January February March April May June July August September October November December January February March April May June July August September October November December January February March April May June 9.47 10.16 10.94 11.3 11.65 13.36 13.43 13.21 13.61 13.52 13.5 14.58 14.97 16.47 16.88 17.33 16.69 17.3 18.56 19.91 21.75 15.72 16.64 13.83 14.02 13.51 14.23 14.57 14.81 14.68 14.34 14.34 12.97 13.07 13.62 14.16 13.85 7.286166843 7.677165354 3.290676417 3.097345133 14.67811159 0.523952096 -1.63812360 3.028009084 -0.66127847 -0.14792899 8 2.674897119 10.02004008 2.489374621 2.665876777 -3.69301788 3.654883164 7.283236994 7.273706897 9.241587142 -27.7241379 5.852417303 -16.8870192 1.373825018 -3.63766048 5.32938564 2.389318342 1.647220316 -0.87778528 -2.31607629 0 -9.55369595 0.771010023 4.208110176 3.964757709 -2.18926553 Total

r1 1.363752338 1.363752338 1.363752338 1.363752338 1.363752338 1.363752338 1.363752338 1.363752338 1.363752338 1.363752338 1.363752338 1.363752338 1.363752338 1.363752338 1.363752338 1.363752338 1.363752338 1.363752338 1.363752338 1.363752338 1.363752338 1.363752338 1.363752338 1.363752338 1.363752338 1.363752338 1.363752338 1.363752338 1.363752338 1.363752338 1.363752338 1.363752338 1.363752338 1.363752338 1.363752338 1.363752338 1.363752338

r-r1 5.922414505 6.313413016 1.926924079 1.733592795 13.31435925 -0.83980024 -3.00187594 1.664256746 -2.02503081 1.511681332 6.636247662 1.311144781 8.656287742 1.125622283 1.302124439 -5.05677022 2.291130826 5.919484656 5.909954559 7.877834804 -29.0878902 4.488664965 -18.2507715 0.01007268 -5.00141282 3.965633302 1.025566004 0.283467978 -2.24153761 -3.67982863 -1.36375233 -10.9174482 -0.59274231 2.844357838 2.601005371 -3.55301787 Total Sd

(r-r1)2 35.07499357 39.85918392 3.713036406 3.005343978 177.2721622 0.705264447 9.01125917 2.769750517 4.10074978 2.285180449 44.03978303 1.719100638 74.93131748 1.267025523 1.695528056 25.57092512 5.24928046 35.0402986 34.92756289 62.0602812 846.1053603 20.14811317 333.0906629 0.000101459 25.01413023 15.72624749 1.051785628 0.080354094 5.024490893 13.54113876 1.859820439 119.1906772 0.351343452 8.090371511 6.765228942 12.62393602 1972.96179 7.403005752

Return Where, P1= P0=

(P1/P0*100)-100

Current Previous

month month

price, price

R1= R/n, where n=number of months.

R1= 1.363752338 SD = (R- R1)2/n =1972.96179/36 =7.403005752

Risk and return of SBI Magnum Sector Umbrella FMCG Fund

Factor Risk Return

Percentage 7.403005752 1.363752338

Franklin FMCG Fund

R 2007 2007 2007 2007 2007 2007 2007 2008 2008 2008 2008 2008 2008 2008 2008 2008 2008 2008 2008 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2010 2010 2010 2010 2010 2010 June July August September October November December January February March April May June July August September October November December January February March April May June July August September October November December January February March April May June 13.79 14.31 14.65 15.4 14.97 16.87 18.12 18.74 19.34 19.62 19.68 21.56 22.41 24.05 26.26 27.98 25.87 28.32 30.07 31.89 33.83 37.05 38.34 33.58 32.95 32.76 34.76 35.5 35.92 35.52 34.91 35.57 33.33 32.59 33.36 35.57 34.98 Total 3.770848441 2.375960867 5.119453925 -2.79220779 12.69205077 7.409602845 3.421633554 3.201707577 1.447776629 0.305810398 9.552845528 3.942486085 7.318161535 9.189189189 6.549885758 -7.54110078 9.470429068 6.179378531 6.052544064 6.083411728 9.518179131 3.481781377 -12.4152321 -1.87611673 -0.57663125 6.105006105 2.128883774 1.183098592 -1.11358574 -1.71734234 1.890575766 -6.29744166 -2.22022202 2.362687941 6.62470024 -1.65870115 2.754708549

r1 2.754708549 2.754708549 2.754708549 2.754708549 2.754708549 2.754708549 2.754708549 2.754708549 2.754708549 2.754708549 2.754708549 2.754708549 2.754708549 2.754708549 2.754708549 2.754708549 2.754708549 2.754708549 2.754708549 2.754708549 2.754708549 2.754708549 2.754708549 2.754708549 2.754708549 2.754708549 2.754708549 2.754708549 2.754708549 2.754708549 2.754708549 2.754708549 2.754708549 2.754708549 2.754708549 2.754708549

r-r1 1.016139891 -0.37874768 2.364745375 -5.54691634 9.937342219 4.654894296 0.666925005 0.446999028 -1.30693192 -2.44889815 6.798136979 1.187777536 4.563452986 6.43448064 3.795177208 -10.2958093 6.715720519 3.424669982 3.297835514 3.328703178 6.763470581 0.727072827 -15.1699406 -4.63082528 -3.3313398 3.350297556 -0.62582477 -1.57160995 -3.86829429 -4.47205089 -0.86413278 -9.05215021 -4.97493057 -0.39202060 3.86999169 -4.4134097 Total Sd

(r-r1)2 1.032540279 0.143449807 5.592020691 30.7682809 98.75077037 21.66804091 0.444788962 0.199808131 1.708071045 5.997102158 46.21466639 1.410815475 20.82510315 41.4025411 14.40337004 106.0036899 45.10090209 11.72836448 10.87571908 11.08026485 45.74453431 0.528634896 230.1271003 21.44454283 11.09782492 11.22449371 0.391656649 2.46995786 14.96370076 19.99923918 0.746725467 81.94142349 24.74993419 0.153680157 14.97683568 19.4781852 975.3887794 5.205202471

Return = (P1/P0*100)-100 Where, P1= P0= Current Previous month month price, price

R1= R/n, where n=number of months.

R1= 2.754708549 S=(R-R1)2/n =975.3887794 = 5.205202471

Risk and return of Franklin FMCG Fund

Factor Risk Return

Percentage 5.205202471 2.754708549

Average risk and return of FMGC FUNDS

NAME ICICI Prudential SBI Umbrella - FMCG Franklin FMCG Fund AVG

RISK 3.996363847 Magnum Sector 7.403005752 5.205202471 6.352808387

RETURN 6.450216939 1.363752338 2.754708549 2.704941578

FINDINGS:Sbi magnum sector umbrella-FMGC has the highest risk factor of 7.4/month

Icici prudential FMCG has the highest return of 3.99/month

Calculation of risk and return of infrastructure ICICI Prudential Infrastructure

R 2008 2008 2008 2008 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2010 2010 2010 2010 2010 2010 September October November December January February March April May June July August September October November December January February March April May June 10.73 9.66 10.83 11.67 12.68 13.18 13.71 15.04 12.98 12.04 12.46 13.82 14.04 14.77 15.78 16.03 16.63 15.13 13.71 14.91 15.89 16.51 Total -9.97204100 12.11180124 7.756232687 8.654670094 3.943217666 4.02124431 9.700948213 -13.6968085 -7.24191063 3.48837209 10.91492777 1.591895803 5.199430199 6.838185511 1.584283904 3.742981909 -9.01984365 -9.38532716 8.7527352 6.572769953 3.901825047 2.355218603

r1 2.355218603 2.355218603 2.355218603 2.355218603 2.355218603 2.355218603 2.355218603 2.355218603 2.355218603 2.355218603 2.355218603 2.355218603 2.355218603 2.355218603 2.355218603 2.355218603 2.355218603 2.355218603 2.355218603 2.355218603 2.355218603

r-r1 -12.3272596 9.756582639 5.401014084 6.299451491 1.587999063 1.666025707 7.34572961 -16.0520271 -9.59712923 1.13315349 8.559709166 -0.7633228 2.844211597 4.482966908 -0.77093469 1.387763306 -11.3750622 11.74054577 6.397516627 4.21755135 1.546606444 Tota SD

(r-r1)2 151.9613295 95.1909048 29.17095314 39.68308909 2.521741023 2.775641655 53.9597435 257.6675745 92.10488955 1.284036832 73.26862101 0.582661697 8.089539606 20.0969923 0.59434031 1.925886994 129.3920414 137.8404149 40.92821899 17.78773939 2.391991494 1159.218352 7.429729059

Return Where,

(P1/P0*100)-100

P1= Current month price, P0= Previous month price R1= R/n, where n=number of months. R1= 2.355218603 SD = (RR1)2/n

= 1159.218352/21 = 7.429729059

Risk and return of ICICI Prudential Infrastructure Fund

Factor Risk Return

Percentage 7.429729059 2.355218603

Birla Infrastructure Fund


R 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2010 2010 2010 2010 2010 2010 March April May June July August September October November December January February March April May June 10.41 10.99 9.83 8.94 9.02 9.9 10.77 11.23 12.08 12.09 12.33 11.37 11.3 12.28 13.06 13.82 Total 5.571565802 -10.5550500 -9.05391658 0.894854586 9.756097561 8.787878788 4.271123491 7.569011576 0.082781457 1.985111663 -7.78588807 -0.61565523 8.672566372 6.351791531 5.819295559 2.11677123 r1 2.11677123 2.11677123 2.11677123 2.11677123 2.11677123 2.11677123 2.11677123 2.11677123 2.11677123 2.11677123 2.11677123 2.11677123 2.11677123 2.11677123 2.11677123 r-r1 3.454794572 -12.6718212 -11.1706878 -1.22191664 7.639326331 6.671107558 2.154352261 5.452240346 -2.03398977 -0.13165956 -9.9026593 -2.73242646 6.555795142 4.235020301 3.702524329 Total
SD

(r-r1)2 11.93560554 160.5750544 124.7842662 1.493080284 58.35930679 44.50367605 4.641233666 29.72692479 4.137114396 0.017334242 98.06266136 7.466154375 42.97844994 17.93539695 13.70868641 620.3249454 6.43078505

Return Where, P1= P0=

(P1/P0*100)-100

Current Previous

month month

price, price

R1= R/n, Where n=number of months. R1= 2.11677123 SD = (R- R1)2/n = 620.3249454/15

= 6.43078505

Risk and return of Birla Infrastructure Fund Percentage 6.43078505 2.11677123

Factor Risk Return

Tata Infrastructure Fund


R 2008 2008 2008 2008 2008 2008 2008 2008 2008 2008 2008 2008 2009 2009 2009 2006 2009 2009 2009 2009 2009 2009 2009 2009 2010 2010 2010 2010 2010 2010 January February March April May June July August September October November December January February March April May June July August September October November December January February March April May June 10.06 10.54 10.59 10.74 11.22 11.19 11.99 13.04 14 12.55 14.22 14.97 16.78 17.4 19.91 21.74 19.09 17.68 17.55 19.35 20.73 22 23.95 24 24.23 22.06 22.02 23.79 25.52 27.15 Total 4.771371769 0.474383302 1.416430595 4.469273743 -0.26737967 7.149240393 8.757297748 7.36196319 -10.3571428 13.30677291 5.274261603 12.09084836 3.694874851 14.42528736 9.191361125 -12.1895124 -7.38606600 -0.73529411 10.25641026 7.131782946 6.126386879 8.863636364 0.208768267 0.95833333 -8.95583986 -0.18132366 8.038147139 7.27196301 6.387147335 3.708737375 r1 3.708737375 3.708737375 3.708737375 3.708737375 3.708737375 3.708737375 3.708737375 3.708737375 3.708737375 3.708737375 3.708737375 3.708737375 3.708737375 3.708737375 3.708737375 3.708737375 3.708737375 3.708737375 3.708737375 3.708737375 3.708737375 3.708737375 3.708737375 3.708737375 3.708737375 3.708737375 3.708737375 3.708737375 3.708737375 r-r1 1.062634395 -3.23435407 -2.29230678 0.760536368 -3.97611705 3.440503018 5.048560373 3.653225815 -14.0658802 9.598035534 1.565524229 8.382110989 -0.01386252 10.71654998 5.48262375 -15.8982497 -11.0948033 -4.44403149 6.547672882 3.423045571 2.417649504 5.154898989 -3.4999691 -2.75040404 -12.6645772 -3.89006103 4.329409764 3.563225635 2.678409961 Total SD (r-r1)2 1.129191856 10.46104627 5.254670373 0.578415567 15.80950683 11.83706102 25.48796184 13.34605886 197.8489867 92.1222861 2.45086611 70.25978462 0.00019217 114.8444435 30.05916319 252.7543465 123.094662 19.74941591 42.87202016 11.71724098 5.845029125 26.57298358 12.24978375 7.564722391 160.3915167 15.13257488 18.74378891 12.69657692 7.173879917 1308.048177 6.716033766

Return = (P1/P0*100)-100 Where, p1= Current month price, P0= Previous month price R1= R/n,

Where n=number of months. R1= 3.708737375 SD=(R-R1)2/n = 1308.048177/29 = 6.716033766

Risk and return of Tata Infrastructure Fund

Factor Risk Return

Percentage 6.716033766 3.708737375

AVERAGE RISK AND RETURN OF INFRASTRUCTURE FUNDS


NAME ICICI Prudential Infrastructure Fund Birla Infrastructure Fund Tata Infrastructure Fund AVG RISK 7.429729059 6.43078505 6.716033766 6.858849292 RETURN 2.355218603 2.11677123 3.708737375 2.726909069

Findings:ICICI Prudential Infrastructure Fund has the highest risk factor of 9.83 Tata Infrastructure Fund has the highest return of 3.71

Calculation risk and return of SENSEX INDEX FUNDS Franklin India Index Fund - BSE Sensex Plan
R 2007 2007 2007 2007 2007 2007 2007 2008 2008 2008 2008 2008 2008 2008 2008 2008 2008 2008 2008 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2010 2010 2010 2010 2010 2010 June July August September October November December January February March April May June July August September October November December January February March April May June July August September October November December January February March April May June 13.73 14.81 14.88 15.97 16.18 17.71 18.77 18.63 19.01 18.38 17.4 18.85 20.4 21.68 22.2 24.54 22.47 24.96 26.66 28.07 29.31 31.86 33.44 39.42 29.97 29.94 32.68 34.73 36.11 38.11 38.33 39.11 35.93 36.25 38.55 40.39 40.79 Total 7.86598689 0.472653612 7.325268817 1.31496556 9.456118665 5.985319029 -0.74587107 2.03972088 -3.31404523 5.33188248 8.333333333 8.222811671 6.274509804 2.398523985 10.54054054 -8.43520782 11.08144192 6.810897436 5.288822206 4.41752761 8.700102354 4.959196485 17.88277512 -23.9726027 -0.1001001 9.151636607 6.272949816 3.973509934 5.538631958 0.577276305 2.034959562 -8.13091281 0.890620651 6.344827586 4.773022049 0.990344145 3.330213119 r1 3.330213119 3.330213119 3.330213119 3.330213119 3.330213119 3.330213119 3.330213119 3.330213119 3.330213119 3.330213119 3.330213119 3.330213119 3.330213119 3.330213119 3.330213119 3.330213119 3.330213119 3.330213119 3.330213119 3.330213119 3.330213119 3.330213119 3.330213119 3.330213119 3.330213119 3.330213119 3.330213119 3.330213119 3.330213119 3.330213119 3.330213119 3.330213119 3.330213119 3.330213119 3.330213119 3.330213119 r-r1 4.535773771 -2.85755950 3.995055699 -2.01524755 6.125905546 2.65510591 -4.07608418 1.290492238 -6.64425835 -8.662095 5.003120215 4.892598553 2.944296685 -0.93168913 7.210327422 -11.7654209 7.7512288 3.480684317 1.958609087 1.087314491 5.369889236 1.628983366 14.552562 -27.3028158 -3.43031321 5.82142348 2.942736698 0.643296815 2.208418839 -2.75293681 -1.29525355 -11.4611259 -2.43959246 3.014614468 1.442808931 -2.33986897 Total SD (r-r1)2 20.57324371 8.165646331 15.96047004 4.061222721 37.52671876 7.049587395 16.61446232 1.665370217 44.14616913 75.03190018 25.03121188 23.9375206 8.668882971 0.868044641 51.98882153 138.42513 60.08154797 12.11516332 3.836149556 1.182252802 28.8357104 2.653586807 211.7770608 745.4437538 11.76704878 33.88897143 8.659699273 0.413830792 4.87711377 7.578661097 1.677681777 131.3574076 5.951611407 9.087900389 2.081697611 5.474986815 1768.456238 7.008836166

Return Where, P1= P0=

(P1/P0*100)-100

Current Previous

month month

price, price

R1= R/n, where n=number of months.

R1= 3.330213119 SD = (RR1)2/n

= 1768.456238/36 = 7.008836166

Risk and return of Franklin India Index Fund - BSE Sensex Plan

Factor Risk Return

Percentage 7.00883616 3.330213119

Reliance Index Fund - Sensex Plan


R 2008 2008 2008 2008 2008 2008 2008 2008 2008 2008 2008 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2010 2010 2010 2010 2010 2010 February March April May June July August September October November December January February March April May June July August September October November December January February March April May June 10.19 9.64 9.26 10.15 10.99 11.7 12.03 13.4 12.17 13.52 14.46 15.21 15.83 17.1 18.25 15.86 15.95 16.06 17.41 18.48 19.21 20.15 20.22 21 19.13 19.29 20.43 21.38 21.57 Total -5.39744847 -3.94190871 9.611231102 8.275862069 6.460418562 2.820512821 11.38819618 -9.17910447 11.09285127 6.952662722 5.186721992 4.076265615 8.02274163 6.725146199 -13.0958904 0.567465322 0.689655172 8.405977584 6.145893165 3.95021645 4.893284748 0.347394541 3.857566766 -8.90476190 0.836382645 5.909797823 4.650024474 0.88868101 2.901279853 r1 2.901279853 2.901279853 2.901279853 2.901279853 2.901279853 2.901279853 2.901279853 2.901279853 2.901279853 2.901279853 2.901279853 2.901279853 2.901279853 2.901279853 2.901279853 2.901279853 2.901279853 2.901279853 2.901279853 2.901279853 2.901279853 2.901279853 2.901279853 2.901279853 2.901279853 2.901279853 2.901279853 2.901279853 r-r1 -8.29872833 -6.84318856 6.709951249 5.374582216 3.55913871 -0.08076703 8.486916324 -12.0803843 8.191571421 4.051382869 2.285442139 1.174985762 5.121461777 3.823866346 -15.9971702 -2.33381453 -2.21162468 5.504697731 3.244613312 1.048936598 1.992004895 -2.55388531 0.956286913 -11.8060417 -2.0648972 3.00851797 1.748744621 -2.01259884 Total SD (r-r1)2 68.86889192 46.82922975 45.02344576 28.886134 12.66746835 0.006523313 72.02774868 145.9356856 67.10184235 16.41370315 5.223245771 1.380591541 26.22937074 14.62195383 255.9094564 5.446690265 4.891283726 30.30169711 10.52751555 1.100267986 3.968083501 6.522330185 0.91448466 139.382622 4.263800478 9.051180376 3.05810775 4.0505541 1030.603909 6.066900564

Return = (P1/P0*100)-100 Where, P1= Current month price, P0= Previous month price R1= R/n, where n=number of months. R1= 2.901279853 SD = (R- R1)2/n = 1030.603909/28 =6.066900564

Factor Risk Return

Percentage 6.066900564 2.901279853

LIC MF Index Fund - Sensex Plan

R 2007 2007 2007 2007 2007 2007 2007 2008 2008 2008 2008 2008 2008 2008 2008 2008 2008 2008 2008 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2010 2010 2010 2010 2010 2010 June July August September October November December January February March April May June July August September October November December January February March April May June July August September October November December January February March April May June 11.61 12.17 12.15 12.73 12.15 12.81 13.84 14.38 14.34 14.5 13.9 14.99 16.48 17.31 17.55 18.61 16.69 18.85 20.12 21.3 22.02 23.61 25.02 22.78 23.73 23.97 25.23 26.79 27.8 29.12 29.18 29.71 27.25 27.35 28.78 29.74 30.22 Total 4.823428079 -0.16433853 4.773662551 -4.55616653 5.43209876 8.040593286 3.901734104 -0.27816411 1.115760112 -4.13793103 7.841726619 9.939959973 5.036407767 1.386481802 6.03988604 -10.3170338 12.94188137 6.737400531 5.864811133 3.38028169 7.220708447 5.972045743 -8.95283773 4.170324846 1.011378003 5.256570713 6.183115339 3.770063457 4.748201439 0.206043956 1.816312543 -8.28004039 0.366972477 5.228519196 3.335649757 1.613987895 2.818597095

r1 2.818597095 2.818597095 2.818597095 2.818597095 2.818597095 2.818597095 2.818597095 2.818597095 2.818597095 2.818597095 2.818597095 2.818597095 2.818597095 2.818597095 2.818597095 2.818597095 2.818597095 2.818597095 2.818597095 2.818597095 2.818597095 2.818597095 2.818597095 2.818597095 2.818597095 2.818597095 2.818597095 2.818597095 2.818597095 2.818597095 2.818597095 2.818597095 2.818597095 2.818597095 2.818597095 2.818597095

r-r1 2.004830984 -2.98293563 1.955065456 -7.37476363 2.61350167 5.221996191 1.083137009 -3.09676121 -1.70283698 -6.95652813 5.023129523 7.121362878 2.217810672 -1.43211529 3.221288945 -13.1356309 10.12328427 3.918803435 3.046214038 0.561684595 4.402111352 3.153448648 -11.7714348 1.351727751 -1.80721909 2.437973618 3.364518244 0.951466361 1.929604344 -2.61255313 -1.00228455 -11.0986374 -2.45162461 2.4099221 0.517052661 -1.2046092 Total SD

(r-r1) 4.019347274 8.897904989 3.822280938 54.38713861 6.83039098 27.26924422 1.17318578 9.589930005 2.899653793 48.39328362 25.23183021 50.71380924 4.918684175 2.050954212 10.37670246 172.5448004 102.4808844 15.35702036 9.279419964 0.315489584 19.37858435 9.944238376 138.5666778 1.827167913 3.266040849 5.943715362 11.31998301 0.905288236 3.723372922 6.825433906 1.004574324 123.179754 6.010463269 5.807724529 0.267343455 1.451083325 899.973401 4.999926113

Return Where, P1= P0=

(P1/P0*100)-100

Current Previous

month month

price, price

R1= R/n, where n=number of months. R1= 2.818597095 SD = = (RR1)2/n

899.973401/36

=4.999926113

Risk and return of LIC MF Index Fund- Sensex Plan

Factor Risk Return

Percentage 3.760593672 2.818597095

Average risk and return of SENSEX INDEX FUNDS


NAME Franklin India Index Fund BSE Sensex Plan Reliance Index Fund - Sensex Plan LIC MF Index Fund - Sensex Plan AVG RISK RETURN

7.008836166 3.330213119 6.066900564 2.901279853 4.999926113 2.818597095 6.025220948 3.016696689

Findings:Franklin India Index Fund - BSE Sensex Plan has the highest risk factor of 7.01/month and also highest return of 3.33

Calculation funds

of

risk

and

return

of midcap

HSBC Midcap Equity Fund


R 2008 2008 2008 2008 2008 2008 2008 2008 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2010 2010 2010 2010 2010 2010 May June July August September October November December January February March April May June July August September October November December January February March April May June 10.29 10.44 11.81 12.9 14.02 12.93 14.13 14.9 15.89 16.36 18.63 19.38 16.93 14.53 14.65 16.05 17 17.53 19.33 19.76 20.75 18.75 18.18 19.51 20.49 21.71 Total 1.457725948 13.12260536 9.229466554 8.682170543 -7.7746077 9.280742459 5.449398443 6.644295302 2.957835116 13.87530562 4.025764895 -12.6418988 -14.176018 0.825877495 9.556313993 5.919003115 3.117647059 10.26811181 2.224521469 5.010121457 -9.63855421 -3.04 7.315731573 5.023065095 5.954123963 3.306749904 r1 3.306749904 3.306749904 3.306749904 3.306749904 3.306749904 3.306749904 3.306749904 3.306749904 3.306749904 3.306749904 3.306749904 3.306749904 3.306749904 3.306749904 3.306749904 3.306749904 3.306749904 3.306749904 3.306749904 3.306749904 3.306749904 3.306749904 3.306749904 3.306749904 3.306749904 r-r1 -1.84902395 9.81585546 5.92271665 5.375420639 -11.0813576 5.97399255 2.142648539 3.337545398 -0.34891478 10.56855572 0.719014992 -15.9486487 -17.482768 -2.4808724 6.24956409 2.612253212 -0.18910284 6.961361905 -1.08222843 1.703371554 -12.9453041 -6.34674990 4.00898167 1.716315191 2.647374059 Total SD (r-r1) 3.41888959 96.35101842 35.07857252 28.89514705 122.7964864 35.68858706 4.590942764 11.13920929 0.121741529 111.69437 0.516982558 254.3593975 305.6472051 6.154727908 39.05705131 6.823866842 0.035759886 48.46055957 1.171218384 2.901474651 167.5808988 40.28123434 16.07193403 2.945737836 7.00858941 1348.791603 7.345179651

Return Where,

(P1/P0*100)-100

P1= Current month price, P0= Previous month price R1= R/n, Where n=number of months. R1= 3.306749904 SD = = = (RR1)2/n

1348.791603/25

7.345179651

Risk and return of HSBC Midcap Equity Fund Factor Risk Return Percentage 7.345179651 3.306749904

Kotak Midcap Fund

R 2008 2008 2008 2008 2008 2008 2008 2008 2008 2008 2008 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2010 2010 2010 2010 2010 2010 February March April May June July August September October November December January February March April May June July August September October November December January February March April May June 10.17 9.98 10.31 11.02 10.95 12.13 13.7 14.22 12.8 14.32 15.03 16.16 17.16 17.79 20.2 17.75 15.1 15.27 16.77 17.29 18.12 19.02 19.69 20.67 19.31 19.25 20.71 21.97 23.25 Total -1.86823992 3.306613226 6.886517944 -0.63520871 10.77625571 12.94311624 3.795620438 -9.9859353 11.875 4.958100559 7.51829674 6.188118812 3.671328671 13.54693648 -12.1287128 -14.9295774 1.125827815 9.823182711 3.100775194 4.800462695 4.966887417 3.522607781 4.977145759 -6.57958393 -0.31071983 7.584415584 6.084017383 5.826126536 3.244263416

r1 3.244263416 3.244263416 3.244263416 3.244263416 3.244263416 3.244263416 3.244263416 3.244263416 3.244263416 3.244263416 3.244263416 3.244263416 3.244263416 3.244263416 3.244263416 3.244263416 3.244263416 3.244263416 3.244263416 3.244263416 3.244263416 3.244263416 3.244263416 3.244263416 3.244263416 3.244263416 3.244263416 3.244263416

r-r1 -5.11250333 0.06234981 3.642254528 -3.87947212 7.531992292 9.698852825 0.551357022 -13.2301987 8.630736584 1.713837143 4.274033324 2.943855396 0.427065255 10.30267307 -15.3729762 -18.1738408 -2.11843560 6.578919295 -0.14348822 1.556199279 1.722624001 0.278344365 1.732882343 -9.82384735 -3.55498325 4.340152168 2.839753967 2.58186312 Total SD

(r-r1)2 26.13769038 0.003887499 13.26601804 15.05030399 56.73090788 94.06774611 0.303994566 175.0381581 74.48961398 2.937237751 18.26736085 8.666284591 0.182384732 106.1450723 236.3283999 330.2884924 4.487769398 43.28217909 0.02058887 2.421756196 2.967433449 0.077475586 3.002881215 96.50797684 12.63790591 18.83692084 8.064202592 6.666017171 1356.87666 6.961313146

Return = (P1/P0*100)-100 Where, P1= price, P0= price R1= R/n, Where n=number of months. R1=3.244263416 SD=(R-R1)2/n = 1356.87666/28 =6.961313146 Previous month Current month

RISK AND RETURN OF KOTAK MIDCAP FUND

Factor Risk Return

Percentage 6.961313146 3.244263416

SBI Magnum Midcap Fund

R 2008 2008 2008 2008 2008 2008 2008 2008 2008 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2010 2010 2010 2010 2010 2010 April May June July August September October November December January February March April May June July August September October November December January February March April May June 10.07 10.61 10.52 11.77 13.4 13.85 12.73 14.21 15.12 16.82 17.07 19.07 20.79 18.12 16.01 15.86 17.74 18.87 19.91 22.06 22.18 23.53 21.4 20.95 22.27 23.44 25.17 Total 5.362462761 -0.84825636 11.88212928 13.84876805 3.358208955 -8.08664259 11.62608013 6.403940887 11.24338624 1.486325803 11.71646163 9.019402202 -12.8427128 -11.6445916 -0.93691442 11.85372005 6.369785795 5.511393747 10.79859367 0.543970988 6.086564472 -9.05227369 -2.10280373 6.30071599 5.253704535 7.380546075 3.866614076

r1 3.866614076 3.866614076 3.866614076 3.866614076 3.866614076 3.866614076 3.866614076 3.866614076 3.866614076 3.866614076 3.866614076 3.866614076 3.866614076 3.866614076 3.866614076 3.866614076 3.866614076 3.866614076 3.866614076 3.866614076 3.866614076 3.866614076 3.866614076 3.866614076 3.866614076 3.866614076

r-r1 1.495848684 -4.71487043 8.015515201 9.982153978 -0.50840512 -11.9532566 7.75946604 2.53732681 7.376772167 -2.38028827 7.849847552 5.152788126 -16.7093269 -15.5112056 -4.8035285 7.987105974 2.503171718 1.64477967 6.931979595 -3.32264308 2.219950396 -12.9188877 -5.96941781 2.434101914 1.387090459 3.513931999 Total SD

(r-r1)2 2.237563286 22.23000325 64.24848394 99.64339804 0.258475767 142.8803452 60.20931337 6.438027342 54.4167676 5.665772266 61.62010659 26.55122547 279.2016061 240.5975019 23.0738861 63.79386184 6.265868652 2.705300164 48.05234111 11.03995709 4.928179761 166.8976612 35.63394905 5.924852128 1.924019941 12.34771809 1448.786185 7.464753551

Return Where, p1= P0=

(P1/P0*100)-100

Current Previous

month month

price, price

R1= R/n, Where n=number of months.

R1= 3.866614076 SD = = = (RR1)2/n

1448.786185/26 7.464753551

Risk and return of SBI Magnum Midcap Fund

Factor Risk Return

Percentage 7.464753551 3.866614076

Average

risk

and

return
RISK

of

MIDCAP

FUND

NAME HSBC Midcap Equity Fund Kotak Midcap Fund SBI Magnum Midcap Fund AVG

RETURN 3.306749904 3.244263416 3.866614076 3.472542465

7.345179651 6.961313146 7.464753551 7.257082116

FINDINGS
SBI magnum midcap fund has the highest risk factor of 7.26 and highest return of 3.47

Calculated risk and return of different mutual funds

Type of mutual funds FMCG sector mutual funds Infrastructure sector mutual funds Index (sensex plan ) mutual funds Midcap mutual funds

AVG risk 6.352808387 6.858849292 6.025220948 7.257082116

AVG return 2.704941578 2.726909069 3.016696689 3.472542465

Interpretation:
Mutual fund schemes are subjected to market risk.

return of 3.47% followed by index mutual fund with an average return of 3.01%,infrastructure sector mutual funds average of 2.72% and FMCG sector mutual funds average of 2.7%

7.26% followed by infrastructure sector mutual funds average of 6.85%, FMCG sector mutual funds average of 6.35% and index(sensex plan) mutual funds average of 6.02%.

followed by index(sensex plan),infrastructure and FMCG mutual funds

Findings & Recommendations


Saving money is not enough. Each of us also needs to invest one's savings intelligently in order to have enough money available for funding the higher education of ones Children, for buying a house, or for ones own golden years.

Findings
Investments in mutual fund schemes are subjected to market risk. Now a days investments in mutual fund schemes are increases because of falling interest rates and awareness of equity capital and mutual fund Schemes in the minds of investors. Investment in mutual fund schemes gives diversified portfolio to investors. Standard deviation is one of the best ways for finding risk of scrips mutual fund Units. On the basis of above statements it has proved higher the risk higher the return and lower the risk lower the return. In case of mutual funds(open ended) liquidity is very high, with in three working days mutual funds will converted into cash and liquidity of equity is based on demand and supply conditions of the market for a particular scrip

Recommendations
Now a days Indian capital market is attracting more and more foreign institutional investors (FII.s) because of economic stability and increasing growth rate, it leads to gradual increase in the stock market indices.

This is the right time to invest in share and mutual funds because of above reason. Interest rates are changing gradually and equity markets are booming because of this is reason investors can move from bank deposits to mutual funds and equities. Equity market needs thorough research & analysis in comparison to mutual funds manager.

Five basic norms of smart investing:


Investors must have a portfolio approach to wealth. One must analyze one's risk appetite. One must possess a long-term outlook Never forget to do homework and analysis. It is essential to have control over one's emotions. Investment in mutual fund schemes are subjected to market risk.

Following are the recommendations given to investors for investing rationally in mutual fund schemes Aggressive Growth Funds
Investors who can assume the risk of potential loss in value of their investment in the hope of achieving substantial and rapid gains. They are not suitable for investors who must conserve their principal or who must maximize current income.

Growth Funds
Although growth funds are more conservative than aggressive growth funds, they are still relatively volatile. They are suitable for growthoriented investors but not investors who are unable to assume risk or who are dependent on maximizing current income from their investments.

Growth and Income Funds


Growth and income funds have low to moderate stability of principal and moderate potential for current income and growth. They are suitable for investors who can assume some risk to achieve growth of capital but who also want to maintain a moderate level of current income.

Fixed-Income Funds
Fixed-income funds are suitable for investors who want to maximize current income and who can assume a degree of capital risk in order to do so. Again, carefully read the prospectus to learn if a fund's investment policy with respect to yield and risk coincides with your own objectives.

Balanced/Equity Income funds


Balanced and equity income funds are suitable for conservative investors who want high current yield with some growth.

Money Market Funds


Money market funds are suitable for conservative investors who want high stability of principal and moderate current income with immediate liquidity.

CALCULATED RISK AND RETURN OF ALL 12 MUTUAL FUNDS


FMGC FUNDS RETURN ICICI Prudential FMCG SBI Magnum Sector Umbrella - FMCG Fund Franklin FMCG Fund INFRASTRUCTURE FUNDS ICICI Prudential Infrastructure Fund Birla Infrastructure Fund Tata Infrastructure Fund 7.429729059 6.43078505 2.355218603 2.11677123 7.403005752 5.205202471 1.363752338 2.754708549 6.450216939 3.996363847 RISK

6.716033766

3.708737375

SENSEX PLAN INDEX FUNDS


Franklin India Index Fund - BSE Sensex Plan Reliance Index Fund Sensex Plan LIC MF Index Fund Sensex Plan 4.999926113 2.818597095 6.066900564 2.901279853 7.008836166 3.330213119

MIDCAP FUNDS
HSBC Midcap Equity Fund Kotak Midcap Fund SBI Magnum Midcap Fund 7.345179651 6.961313146 7.464753551 3.306749904 3.244263416 3.866614076

Conclusion
This study helps new clients of the company who are interested in investing in mutual funds to understand about mutual funds and their different types and how to analysis risk and return of funds and which one to chose depending on their risk handing ability mutual

BIBLIOGRAPHY: WWW.MONEYCONTROL.COM WWW.MUTUALFUNDSINDIA.COM MUTUAL FUND TRAINING COURSE BOOK