39882974 Portfolio Management

A portfolio is a collection of investments held by an institution or a private individual. In

building up an investment portfolio a financial institution will typically conduct its own

investment analysis, whilst a private individual may make use of the services of a financial

advisor or a financial institution which offers portfolio management services. Holding a portfolio

is part of an investment and risk-limiting strategy called diversification. By owning several

assets, certain types of risk (in particular specific risk) can be reduced. The assets in the portfolio

could include stocks, bonds, options, warrants, gold certificates, real estate, futures contracts,

production facilities, or any other item that is expected to retain its value.

Portfolio management involves deciding what assets to include in the portfolio, given the

goals of the portfolio owner and changing economic conditions. Selection involves deciding

what assets to purchase, how many to purchase, when to purchase them, and what assets to

divest. These decisions always involve some sort of performance measurement, most typically

expected return on the portfolio, and the risk associated with this return (i.e. the standard

deviation of the return). Typically the expected returns from portfolios, comprised of different

asset bundles are compared.

The unique goals and circumstances of the investor must also be considered. Some investors are

more risk averse than others. Mutual funds have developed particular techniques to optimize

their portfolio holdings.

Thus, portfolio management is all about strengths, weaknesses, opportunities and threats in

the choice of debt vs. equity, domestic vs. international, growth vs. safety and numerous

other trade-offs encountered in the attempt to maximize return at a given appetite for risk.

http://en.wikipedia.org/wiki/Standard_deviation

http://en.wikipedia.org/wiki/Standard_deviation

http://en.wikipedia.org/wiki/Risk

http://en.wikipedia.org/wiki/Expected_return

Aspects of Portfolio Management:

Basically portfolio management involves

A proper investment decision making of what to buy & sell

Proper money management in terms of investment in a basket of assets so as to

satisfy the asset preferences of investors.

Reduce the risk and increase returns.

OBJECTIVES OF PORTFOLIO MANAGEMENT:

The basic objective of Portfolio Management is to maximize yield and minimize risk. The other

ancillary objectives are as per needs of investors, namely:

Regular income or stable return

Appreciation of capital

Marketability and liquidity

Safety of investment

Minimizing of tax liability.

NEED FOR PORTFOLIO MANAGEMENT:

The Portfolio Management deals with the process of selection securities from the number of

opportunities available with different expected returns and carrying different levels of risk and

the selection of securities is made with a view to provide the investors the maximum yield for a

given level of risk or ensure minimum risk for a level of return.

Portfolio Management is a process encompassing many activities of investment in assets and

securities. It is a dynamics and flexible concept and involves regular and systematic analysis,

judgment and actions. The objectives of this service are to help the unknown investors with the

expertise of professionals in investment Portfolio Management. It involves construction of a

portfolio based upon the investor’s objectives, constrains, preferences for risk and return and

liability. The portfolio is reviewed and adjusted from time to time with the market conditions.

The evaluation of portfolio is to be done in terms of targets set for risk and return. The changes

in portfolio are to be effected to meet the changing conditions.

Portfolio Construction refers to the allocation of surplus funds in hand among a variety of

financial assets open for investment. Portfolio theory concerns itself with the principles

governing such allocation. The modern view of investment is oriented towards the assembly of

proper combinations held together will give beneficial result if they are grouped in a manner to

secure higher return after taking into consideration the risk element.

The modern theory is the view that by diversification, risk can be reduced. The investor can

make diversification either by having a large number of shares of companies in different regions,

in different industries or those producing different types of product lines. Modern theory believes

in the perspectives of combination of securities under constraints of risk and return.

ELEMENTS:

Portfolio Management is an on-going process involving the following basic tasks.

Identification of the investors objective, constrains and preferences which help

formulated the invest policy.

Strategies are to be developed and implemented in tune with invest policy formulated.

This will help the selection of asset classes and securities in each class depending upon

their risk-return attributes.

Review and monitoring of the performance of the portfolio by continuous overview of

the market conditions, company’s performance and investor’s circumstances.

Finally, the evaluation of portfolio for the results to compare with the targets and needed

adjustments have to be made in the portfolio to the emerging conditions and to make up

for any shortfalls in achievements (targets).

Specification and quantification of investor objectives, constraints, and preferences

Portfolio policies and strategies

Capital market expectations

Relevant economic, social, political sector and security considerations

Monitoring investor related input factors

Portfolio construction and revision asset allocation, portfolio optimization, security selection, implementation and execution

Monitoring economic and market input factors

Attainment of investor objectives

Performance measurement

Schematic diagram of stages in portfolio management:

Process of portfolio management:

The Portfolio Program and Asset Management Program both follow a disciplined process to

establish and monitor an optimal investment mix. This six-stage process helps ensure that the

investments match investor’s unique needs, both now and in the future.

1. IDENTIFY GOALS AND OBJECTIVES :

When will you need the money from your investments? What are you saving your money

for? With the assistance of financial advisor, the Investment Profile Questionnaire will guide

through a series of questions to help identify the goals and objectives for the investments.

2. DETERMINE OPTIMAL INVESTMENT MIX:

Once the Investment Profile Questionnaire is completed, investor’s optimal investment mix

or asset allocation will be determined. An asset allocation represents the mix of investments

(cash, fixed income and equities) that match individual risk and return needs.

This step represents one of the most important decisions in your portfolio construction,

as asset allocation has been found to be the major determinant of long-term portfolio

performance.

PORTFOLIO RISK:

Risk on portfolio is different from the risk on individual securities. This risk is reflected by in the

variability of the returns from zero to infinity. The expected return depends on probability of the

returns and their weighted contribution to the risk of the portfolio.

RETURN ON PORTFOLIO:

Each security in a portfolio contributes returns in the proportion of its investment in security.

Thus the portfolio of expected returns, from each of the securities with weights representing the

proportionate share of security in the total investments.

RISK – RETURN RELATIONSHIP :

The risk/return relationship is a fundamental concept in not only financial analysis, but in every

aspect of life. If decisions are to lead to benefit maximization, it is necessary that

individuals/institutions consider the combined influence on expected (future) return or benefit as

well as on risk/cost. The requirement that expected return/benefit be commensurate with

risk/cost is known as the "risk/return trade-off" in finance. All investments have some risks. An

investment in shares of companies has its own risks or uncertainty. These risks arise out of

variability of returns or yields and uncertainty of appreciation or depreciation of share prices,

loss of liquidity etc. and the overtime can be represented by the variance of the returns.

Normally, higher the risk that the investors take, the higher is the return.

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HISTORY OF THE MAHINDRA & INDIAN MUTUAL FUND INDUSTRY

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

initiative of the Government of India and Reserve Bank. The history of mutual funds in India can

be broadly divided into four distinct phases

First Phase – 1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the

Reserve Bank of India and functioned under the Regulatory and administrative control of the

Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development

Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The

first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6, 700

cores of assets under management.

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

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

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

(GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987 followed

by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank

Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC

established its mutual fund in June 1989 while GIC had set up its mutual fund in December

1990.

At the end of 1993, the mutual fund industry had assets under management of Rs.47,004 crores.

Third Phase – 1993-2003 (Entry of Private Sector Funds)

With the entry of private sector funds in 1993, a new era started in the Indian mutual fund

industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in

which the first Mutual Fund Regulations came into being, under which all mutual funds, except

UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with

Franklin Templeton) was the first private sector mutual fund registered in July 1993.

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and

revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual

Fund) Regulations 1996.

The number of mutual fund houses went on increasing, with many foreign mutual funds setting

up funds in India and also the industry has witnessed several mergers and acquisitions. As at the

end of January 2003, there were 33 mutual funds with total assets of Rs. 1, 21,805 corers. The

Unit Trust of India with Rs.44,541 crores of assets under management was way ahead of other

mutual funds.

Fourth Phase – since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated

into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets

under management of Rs.29,835 crores as at the end of January 2003, representing broadly, the

assets of US 64 scheme, assured return and certain other schemes. The Specified Undertaking of

Unit Trust of India, functioning under an administrator and under the rules framed by

Government of India and does not come under the purview of the Mutual Fund Regulations.

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

with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the

erstwhile UTI which had in March 2000 more than Rs.76,000 crores of assets under management

and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund

Regulations, and with recent mergers taking place among different private sector funds, the

mutual fund industry has entered its current phase of consolidation and growth. As at the end of

September, 2004, there were 29 funds, which manage assets of Rs.153108 crores under 421

schemes.

The graph indicates the growth of assets over the years.

GROWTH IN ASSETS UNDER MANAGEMENT

Erstwhile UTI was bifurcated into UTI Mutual Fund and the Specified Undertaking of the Unit

Trust of India effective from February 2003. The Assets under management of the Specified

Undertaking of the Unit Trust of India has therefore been excluded from the total assets of the

industry as a whole from February 2003 onwards.

OBJECTIVE OF STUDY

A study to find the returns, variance, & standard deviation of dividend and growth fund

of Mahindra Financial services.

Based on the returns I tried to correlate these two funds, to know whether there exist

positive or negative correlations.

Factors influencing the performance of dividend fund and growth fund

LIMITATIONS

1. In this study the number of funds considered is only two funds of Mahindra Financial

services and they are dividend fund and growth fund.

2. The data collected for a period of one year i.e., from January 2008 to December 2008.

3. In this study the statistical tools used are risk, return, average, variance, correlation.

4. In this study specific data is collected.

METHODOLOGY

Arithmetic average or mean:

The arithmetic average measures the central tendency. The purpose of computing an average

value for a set of observations is to obtain a single value, which is representative of all the items.

The main objective of averaging is to arrive at a single value which is a representative of the

characteristics of the entire mass of data and arithmetic average or mean of a series(usually

denoted by x) is the value obtained by dividing the sum of the values of various items in a series

(sigma x) divided by the number of items (N) constituting the series.

Thus, if X1,X2……………..Xn are the given N observations. Then

X= X1+X2+……….Xn

N

RETURN

Current price-previous price *100

Previous price

STANDARD DEVIATION:

The concept of standard deviation was first suggested by Karl pearson in 1983.it

may be defined as the positive square root of the arithmetic mean of the squares of deviations of

the given observations from their arithmetic mean. In short S.D may be defined as “Root Mean

Square Deviation from Mean”

It is by far the most important and widely used measure of studying dispersions.

For a set of N observations X1, X2……..Xn with mean X,

Deviations from Mean: (X1-X),(X2-X),….(Xn-X)

Mean-square deviations from Mean:

= 1/N (X1-X) 2+(X2-X) 2+………. + (Xn-X) 2

=1/N sigma(X-X) 2

Root-mean-square deviation from mean, i.e.

VARIANCE:

The square of standard deviation is known as Variance.

Variance is the square root of the standard deviation:

Variance = (S.D) 2

Where, (S.D) is standard deviation

CORRELATION

Correlation is a statistical technique, which measures and analyses the degree or extent to

which two or more variables fluctuate with reference to one another. Correlation thus denotes the

inter-dependence amongst variables. The degrees are expressed by a coefficient, which ranges

between –1 and +1. The direction of change is indicated by (+) or (-) signs. The former refers to

a sympathetic movement in a same direction and the later in the opposite direction.

Karl Pearson’s method of calculating coefficient (r) is based on covariance of the

concerned variables. It was devised by Karl Pearson a great British Biometrician.

This measure known as Pearsonian correlation coefficient between two variables (series)

X and Y usually denoted by ‘r’ is a numerical measure of linear relationship and is defined as the

ratio of the covariance between X and Y (written as Cov(X,Y) to the product of standard

deviation of X and Y

Symbolically

r = Cov (X,Y)

SD of X, Y

= Σ xy/N = ΣXY

SD of X, Y N

Where x =X-X, y=Y-Y

Σxy = sum of the product of deviations in X and Y series calculated with reference to their

arithmetic means.

X = standard deviation of the series X.

Y = standard deviation of the series Y.

ABOUT THE COMPANY

INTRODUCTION

The Securities market is a place where suppliers and users of capital meet to share each other’s

vision and aspirations and nowhere a balance is sought to be achieved between the diverse

interests of market participants. Securities decouple individual acts of saving from those of

investment over time, space and entity and thus allow savings to occur without a concomitant

investment. Moreover, availability of yield bearing securities makes present consumption,

inducing people to save more. The composition of savings changes, with less saving held in the

form of idle money or unproductive assets simply because more divisible and liquid assets are

available.

The securities market avoids allocation of saving to low yielding enterprises and hence forces

them to improve performance through movement of their share prices in the market and the

threat of takeover. This improves efficiency of resource use and thereby significantly increases

the return on investment. As a result, savers and investors are constrained not by individual

abilities but by the economy’s ability to invest and save, which inevitably enhances savings and

investment in the economy. Thus the securities market converts a given stock of invisible

resources into a larger flow of goods and services and promotes economic growth.

MARKET – ECONOMY LINK:-

Two renowned economists, Levine and Zeros investigated the empirical link between stock

market behavior and long-run economic growth. Their findings suggest that stock market

development is positively associated with economic growth and that instrumental variable

procedures indicate a strong connection between predetermined components of the stock market

and economic growth in the long run. They studied whether measures of stock market liquidity,

as measured by the value if stock trading relative to the market size and size of the economy, is

positively and significantly correlated with current and future rates of economic growth, capital

accumulation and productivity growth. In fact, there are theoretical and empirical studies that

have established casual robust (statistically significant) two-way relationship between

developments in the securities market and economic growth.

Sharp rise in market indicators:-

The benchmark indicates namely the Sensex and the S&P CNX NIFTY generated astounding

returns of 40.08% and 34.08% respectively in 2005. The market capitalization of BSE grew form

Rs.15,396 billion at the end of November, 2005 registering growth of over 50%. The market

capitalization of NSE IN CASH SEGMENT GREW FROM Rs. 11,210 billion for 2003-2004 to

Rs. 15,856 billion for 2004-05 registering growth of 41% and Rs.21,668 billion at the end of

November,2004.

OVERVIEW OF THE INDIAN ECONOMY :-

As per macroeconomic assessment of; 2004 of India conducted by Asian development outlook,

2005 in FY2004 march 31(ended 31 march 31st 2005), the economy remained buoyant. GDP

GREW by 7.0% during the first 2 quarters of FY 2004, following 8.5% growth in FY 2003. for

the year FY 2005; the GDP growth is estimated at 6.9%. This strong expansion is on account of

marked improvement in investment as reflected in the leading macro indicators, such as

production and imports of capital good, production of commercial vehicles and non food credit

off-take moreover, strong growth in consumer durables in FY 2004 also indicates a pick up in

consumption demand.

Bullish expectations, driven by buoyant growth and rising corporate profits, are reflected in the

recent boom in stock prices. After decline in quite sharply during April-May 2004 in the run up

to elections (and the formation of the new coalition government), the market has rebounded to

reach record levels of market capitalization, Despite fluctuations during the year, the sensex

market index closed at 7193.85 on June 30,2005 to record a 50.01% increase for 52 weeks of FY

2004. The volatility of the index during December 2004 and January 2005 reflects the

movements in portfolio investments by foreign institutional investors, primarily on account of

expectations of an increase in the US Federal Funds rate.

Indian Financial Sector & Capital Markets:-

The Indian Financial Sector has seen a dramatic change in the last few years. The investors

have regained confidence and the economy of the county is booming. The reasons being, the

establishment and empowerment of the SEBI, screen-based nation wide trading,

dematerialization and electronic transfer of securities, rolling settlement and derivatives trading.

As a result both regulatory framework and efficiency of trading and settlement have improved.

With the economic boom, large amount of savings and investments is expected due to increase in

ITEM 2005 2006 2007 2008

GDP growth 6.5 6.9 6.1 7

GDI/GDP 26.5 26.5 27 27.5

Inflation (WPI) 6 4.2 3 3.5

Money supply

(M3) growth

14.6 14.5 12.5 13.9

Fiscal /GDP -9.1 -8.8 -8.5 -8

Merchandise

Export growth

23.2 14.1 13.8 13.2

Merchandise

import growth

39 19.7 15.4 14.4

Current account/

GDP

-1 -1 -1.4 -1.9

the income level and the population. Hence many new financial services companies are entering

the Indian markets and providing various financial services to the retail and corporate sector.

The existing financial services companies are competing with the new entrants by upgrading

their infrastructure facilities and expanding their distribution channels.

The BSE Limited and NSE have over7, 199(Nov-05) and 1,025 (Nov-05) listed companies

respectively. The average daily turnover of the BSE and NSE has increased over the time.

Trends in the Capital Market:-

Over the past 10 years, Indian Capital Markets have seen a major consolidation. The NSE

market Turnover of our company for both capital and F&O segment; has increased from Rs.

94,270 million for FY 2003 to Rs. 1,89,272 million for FY 2005 and Rs. 28,826 million for the

month, November 2005.

Internet Stock Trading Market:-

Internet stock-trading in India is a new phenomenon and began as recently as January 2000.

Although there are quite a few e-brokers, the industry is still in a nascent stage. However, there

has been a steady growth in Internet trading volumes. It can be attributed to growing

sophistication of retail investors, reduction in the cost of a personal computer, higher tele-

density, availability of reliable Internet connectivity and sophistication Internet trading products.

Commodity Exchange:-

With the setting up of the commodities exchanges, the dynamics in the Commodities trading

has also revolutionized. The market is developing at a very fast pace with the setting up of Multi

Commodity Exchange (MCX), National Commodities and Derivatives Exchange (NCDEX) and

National Multi Commodity Exchange of India Ltd. (NMCE). As a result, more awareness is

being created across India with a lot of investors participating in the commodities market. Some

of the commodities where trading takes place is Gold, Silver, Copper, Castor Seed, Gram

(Chana), Soya Rubber etc.

INTRODUCTION:-

A subsidiary of Mahindra & Mahindra Limited, we are one of India’s leading non-

banking finance companies. Focused on the rural and semi-urban sector, we provide finance for

utility vehicles, tractors and cars and have the largest network of braches e=covering these areas.

Our goal is to be the preferred provider of retail financing services in the rural and semi-urban

areas of India, while our strategy is to provide a range of financial products and services to our

customers through our national wide distribution network.

A subsidiary of Mahindra & Mahindra Limited, we are one of India’s leading non-banking

finance companies, tractors and cars and have the largest network of branches covering these

areas. Our goal is to be the preferred provider of retail financing services in the rural and semi-

urban areas of India, while our strategy is to provide a range of financial products and services to

our customers through our nation wide distribution network.

GROUP STRUCTURE:-

We are a company with a strong foundation and a shining legacy, growing every day to

create a legacy of our own. Our leading promoter Mahindra & Mahindra holds the majority of

our Equity Shares and is also a leading tractor and UV manufacturer with over 60 year’

experience in the Indian market. As a supplement to our business, in May 2004, we started an

insurance broking business through our wholly owned subsidiary, Mahindra Insurance Brokers

Limited.

PRODUCT PORTFOLIO:-

At Mahindra Finance we have a wide range of products and services, with something to

suit everyone’s needs. Right from finance for two wheelers, tractors, farm equipment, cars and

utility vehicles to commercial vehicles and construction equipment, we also have a group of

experts providing investment advice, surveying available market products and choosing the most

suitable to our customers’ needs.

COMPANY OVERVIEW :-

Tech mahindra limited formerly known as Mahindra-British Telecom Limited was

incorporated in the year 1986. The company is a partnership between Mahindra & Mahindra and

British Telecommunications plc. The company has software development centers across six

cities in India and one in UK and 13 sales offices across America, Europe and Asia-Pacific and

around 15,000 professionals servicing clients across various telecom segments. The company’s

service offerings range from applications development and maintenance, solution integration,

product engineering and lifecycle management and testing to high-end and value-added services,

such as consulting, managed platforms and managed services. With its clients spread over 40

countries, Tech Mahindra is amongst India’s top ten software exporters. Company is the global

leader in providing end-to-end IT services and solutions to the Telecom Industry. Tech Mahindra

Businesses through well-established methodologies, tools and techniques backed by its stringent

quality processes. Tech Mahindra is ISO 9001:2000 certified and is also assessed at SEICMMI

Level 5. Tech Mahindra is also BS7799 certified across all development centers. Mahindra &

Mahindra, India’s fifth largest commercial group, in partnership with BT Plc (BT), Europe’s

second largest telecom service provider, Tech Mahindra has grown rapidly to become the top 10

largest software exporter in India.

PRODUCTS & SERVICES:-

Company offers different kind of It services, Research & Development services and

Business Process Outsourcing, In It services it offers services like Solution Integration,

Application Development & Management, Consulting / Advisory, Managed Services, Product

Engineering etc. Company is providing services to premium telecom companies worldwide for

nearly two decades. It combines deep domain expertise in Operations Support Systems and

Business Support Systems intellectual leadership and a global workforce advantage to provide

services to leading players in the telecom ecosystem. Tech Mahindra providers a wide variety of

services ranging from IT strategy and consulting to system integration, design, application

development, implementation, maintenance and product engineering.

FINANACIALS:-

Results for 01-jul-2006 to –sep-2006

Financial Results Rs.lakhs

Net Sales 64140.00

Other Income 640.00

Gross Income 647780.00

Staff Cost 20680.00

Total Expenditure (Excluding Other

Expenditure) 20680.00

Other Expenditure 27600.00

Total Expenditure 48280.00

Profit Before Depreciation &

Taxes 16500.00

Depreciation 48280.00

Profit before Tax 15500.00

Provision for Taxation -2000.00

Adjusted Net Profit 17500.00

Face Value of Share (in Rs.) 10.00

Paid-up Equity Share Capital 11590.00

Reserves Excluding Revalution

Reserves 92180.00

Basic EPS(in Rs.) 15.50

Diluted EPS(in Rs.) 13.63

RECENT DEVELOPMENTS :-

Tech Mahindra has plans invest around Rs billion in expansion plans over the next three

years. The money will be invested into various campuses planned by Tech Mahindra and an

expansion of seat capacity at some of its existing centers. It has been grated land in Pune,

Hyderabad and Chandigarh. Company is also focusing on special ECONOMIC ZONES AND

THIS WOULD BE THE MODEL FOR ALL ITS CAMPUSES.

Telecom gear manufacturer Motorola and It services company called Canvasm\M to

develop innovative applications for telecom subscribers. The joint venture company called

CanvasM will enable network service providers and enterprises to launch applications such as

mobile wallet, m-commerce, entertainment applications and productivity applications. Whereas

Tech Mahindra will bring its experience in applications development and integration capabilities,

Motorola will contribute through its application portfolio and service delivery platform.

CanvasM will be headquartered in Noida. The joint venture will set up a research and

development centre in Noida and Bangalore.

Tech Mahindra is planning to acquire a system integration company and a network

management company in Europe. The company is in talks with a few IT and telecom services

companies for acquisitions in Germany and Sweden too. As the company is more focused on the

telecom industry, it sees a huge market in European countries, where the network management

and system integration market is growing and the company wants to cash in on. Tech Mahindra

has also decided to se up a technology development centre in Chandigarh as part of its drive to

win new customers.

Tech Mahindra, provider of telecom software sees more work on Internet protocol

coming its way. The company is partnering one of its parents and client British Telecom (BT), to

help it roll out its internet protocol based 21st century network project. The 21CN project is a

Euro 10 billion project spread over five years. Company is in initial phase of the rollout cycle

and expects that the number of IP-based network rollouts is a trend that will grow.

Company got a five-year deal with British Telecom (BT) on Dec. 20 to provide strategic

sourcing services. The contract is expected to create revenue for the company, in excess of USD

1 billion over this period. The company will support BT’s planned growth of managed services

to business customers around the globe and continue to provide ongoing services related to BT’s

internal systems, processes and re-usable platforms. Both the companies will work together on

creating and operating a global delivery organization, by leveraging and augmenting the

company’s existing delivery centers, to achieve greater flexibility and efficiencies in addressing

client requirements. Tech Mahindra and BT Group have worked together for 20years on various

projects.

VALUATION:-

Tech Mahindra has built long-term sustainable relationships with telecom customers

through delivery of IT services that help them to achieve greatest competitive advantage in the

telecom marketplace. At present BT share in company’s revenue is over 60% and company is de-

risking its revenue concentration. For this company is looking for North America and Europe.

Company is also looking towards emerging markets across Africa and the Middle East because

of the new operator rollouts that are

Currently taking place in those regions. At CMP, stock is trading at 24.84 X multiple of its

FY2008.Estimated EV/EBITDA. We recommend investors to “BUY” “Tech Mahindra

Ltd”.With medium to long-term investment horizon.

HISTORY:-

We were incorporated on January 1, 1991 as Maxi Motors Financial Services Limited

and received certificate of commencement of business on February 19, 1991. The name was

change to Mahindra Financial Services Limited on November3, 1992. We are registered with the

RBI as an NBFC with effect from September4, 1998 under Section 451A of the Reserve Bank of

India Act 1934.

Key Events in our business history

Calendar Year Event

1993 Commenced financing of M&M UVs

1995 First branch opened outside Mumbai, at Jaipur

1996 Commenced financing M&M dealers for purchase of tractors

1998 Launched pilot project for retail tractor financing

1999 Commenced tractor retail financing in rural and semi-urban areas

2001 Total Assets crossed Rs. 10 billion

2002 Commenced financing of non-M&M vehicles Received Tier II debt from

International Finance Corporation our first securitization transaction of Rs. 434.8

million

2004 Long term credit rating of AA+/Stable

Branch opened in Port Blair

Listing of non convertible debentures on Base on the wholesale debt market segment

securitization of tractor assets of Rs.256.6 million

2005 Tie-up with HPCL MIBL became our wholly owned subsidiary Commenced

distribution of third part mutual funds.

Following a successful IPO, subscribed nearly 27 times more, Mahindra & Mahindra

Financial Services Ltd (MMFSL) priced its shares at Rs 200 each. The original price band for the

issue of two crore shares of Rs 10 each, for cash at a premium decided through the book-built

process, had been fixed at Rs 170-200 a share.

Mahindra & Mahindra Financial Services Limited has informed that Mr. Narayan

Shankar has ceased to be the Company Secretary of the company with effect from October 26,

2006. Ms. Angarika Baviskar would continue to hold the post of Deputy Company Secretary and

Compliance Officer of the company.

ANALYSIS:-

Liquidity:-

One could think have two distinct though related concepts of liquidity. First is monetary

demand for goods/assets. Then trends in monetary liquidity would generally get reflected in

short-term interest rates; low short term rated signifying easy liquidity. This concept of liquidity

is commonly talked about and commented upon. In the context of specific markets viz.

commodities or equities, depth of market is generally related to volume of trading are routinely

indicated to trading. In popular stock market parlance, volume of trading are routinely indicated

to signify ease/frequency of trading. However, to talk about liquidity without reference to price is

hardly meaningful. Market liquidity is considered as capacity of financial markets to absorb

temporary fluctuations in demand and supply without undue dislocations in prices. These two

concepts of liquidity are linked as increase in monetary liquidity may lead to higher demand for

securities and would reflect in higher security prices. A increase in monetary liquidity would

lead to lower interest rated. It is through the increase in security prices the yield would be

brought in alignment with interest rated. However, market liquidity should be considered an

important indicator of the sate of market.

Elasticity of trading:

The proposed new measure to monitor liquidity is similar to price elasticity measure. It is

measured as price elasticity of trading volumes. It can be computed for individual stocks or

group thereof. It can be computed for any period of time (day of month). The main advantage is

it can be computed by anyone who has access to information on prices and volumes of trading

data.

Coefficient of Elasticity of = %change in trading volume

TRADOMG (CET) %change in price

range of CET is quite wide: from + infinity to – infinity.

The coefficient would be positive when the direction of changes in changes in volume and price

is same while it would be negative when the directions are different. High values of CET would

indicate that price changes are accompanied by high volume of transaction. When large sized

transaction take place with little or no change in price , value of CET would approach infinity

and indicate

High liquidity. As a measure of elasticity, the sign of CET may not be very relevant, but with its

sign, the information content will be enriched. CET, together with price trends would convey a

lot of information about state of the market: either for individual scrip or the whole market.

Normally there would be inverse relationship between prices and quality demanded but in case

of asset markets as expected prices have more important role, it would be difficult to envisage

any ex ante relationship between prices and volumes.

GRAPHICAL REPRESENTATION OF RETURNS OF HDFC AMRO MUTUAL FUND FOR THE

MONTH OF JAN-2008

-2.00

0.00

2.00

4.00

6.00

1 3 5 7 9 11 13 15 17 19

RETURNS, VARIANCE AND STANDARD DEVIATION OF HDFC INCOME

FUNDS FOR THE MONTH OF JAN-2008

GRAPHICAL REPRESENTATION

The above graph represents the returns of HDFC income fund it shows that there is continuous

rise and fall in net asset value. If we see the table the monthly mean is 0.44 with price variation

of 2.21and risk factor being 1.49. Thus it can be said that risk is very high when compared to

returns.

RETURNS, VARIANCE AND STANDARD DEVIATION OF HDFC INCOMEFUNDS FOR THE MONTH OF FEB-2008

S NO Date NAV RETURNS (X-XBAR) (X-XBAR)2 SD140

1 2-Jan-07 147.29 5.20 4.76 22.682 3-Jan-07 148.07 0.53 0.53 0.283 4-Jan-07 147.74 -0.22 0.20 0.044 5-Jan-07 147.40 -0.23 0.19 0.045 8-Jan-07 145.68 -1.17 -0.74 0.556 9-Jan-07 144.72 -0.66 -0.23 0.057 10-Jan-07 143.58 -0.78 -0.36 0.138 11-Jan-07 146.01 1.69 2.12 4.48 9 12-Jan-07 148.87 1.96 2.38 5.69

10 15-Jan-07 150.55 1.12 1.55 2.4011 16-Jan-07 151.02 0.32 0.74 0.5512 17-Jan-07 152.25 0.82 1.24 1.5413 18-Jan-07 152.74 0.32 0.75 0.5614 19-Jan-07 151.61 -0.74 -0.32 0.1015 22-Jan-07 151.86 0.17 0.59 0.3516 23-Jan-07 150.67 -0.78 -0.36 0.1317 24-Jan-07 151.30 0.42 0.85 0.7218 25-Jan-07 152.60 0.85 1.28 1.6419 29-Jan-07 151.95 -0.43 0.00 0.00

MEAN 0.44 VARIANCE 2.21 1.49


MONTH OF FEB-2008

-4.00

-3.00

-2.00

-1.00

0.00

1.00

2.00

3.00

1 3 5 7 9 11 13 15 17 19 Series1

S NO Date NAV RETURNS (X-XBAR) (X-XBAR)2 SD1 1-Feb-07 152.42 0.31 0.69 0.472 2-Feb-07 153.66 0.82 1.20 1.433 5-Feb-07 154.57 0.59 0.97 0.934 6-Feb-07 154.47 -0.06 0.31 0.105 7-Feb-07 155.35 0.57 0.95 0.896 8-Feb-07 154.96 -0.25 0.13 0.027 9-Feb-07 153.79 -0.76 -0.38 0.148 12-Feb-07 150.46 -2.17 -1.79 3.209 13-Feb-07 149.50 -0.64 -0.26 0.07

10 14-Feb-07 149.33 -0.11 0.27 0.0711 15-Feb-07 153.19 2.58 2.96 8.7512 19-Feb-07 153.28 0.06 0.44 0.1913 20-Feb-07 151.62 -1.08 -0.71 0.5014 21-Feb-07 150.85 -0.51 -0.13 0.0215 22-Feb-07 148.96 -1.25 -0.87 0.7616 23-Feb-07 145.58 -2.27 -1.89 3.5917 26-Feb-07 145.88 0.21 0.58 0.3418 27-Feb-07 145.43 -0.31 0.07 0.0019 28-Feb-07 141.23 -2.89 -2.51 6.32

MEAN -0.38 VARIANCE 1.46 1.21



rise and fall in net asset value. If we see the table the monthly mean is -0.38 with price variation

of 1.46 and risk factor being 1.21. Thus it can be said that risk is very high when compared to

returns.

GRAPHICAL REPRESENTATION OF RETURNS OF HDFC AMRO MUTUAL FUND FOR THE MONTH OF

MAR-2008

-5.00

-4.00

-3.00

-2.00

-1.00

0.00

1.00

2.00

3.00

1 3 5 7 9 11 13 15 17 19 Series1

RETURNS, VARIANCE AND STANDARD DEVIATION OF HDFC INCOMEFUNDS FOR THE MONTH OF MAR-2008

S NO Date NAV RETURNS (X-XBAR) (X-XBAR)2 SD1 1-Mar-07 143.68 1.73 1.75 3.082 2-Mar-07 140.53 -2.19 -2.17 4.723 5-Mar-07 134.74 -4.12 -4.10 16.814 6-Mar-07 136.86 1.58 1.60 2.555 7-Mar-07 135.17 -1.24 -1.22 1.486 8-Mar-07 138.69 2.60 2.62 6.897 9-Mar-07 138.03 -0.47 -0.45 0.218 12-Mar-07 139.39 0.99 1.01 1.029 13-Mar-07 140.46 0.77 0.79 0.62

10 14-Mar-07 136.75 -2.64 -2.62 6.8811 15-Mar-07 137.87 0.82 0.84 0.7112 16-Mar-07 136.66 -0.88 -0.86 0.7413 19-Mar-07 138.28 1.19 1.21 1.4614 20-Mar-07 139.42 0.82 0.84 0.7115 21-Mar-07 141.30 1.35 1.38 1.8916 22-Mar-07 144.22 2.06 2.08 4.3417 23-Mar-07 144.18 -0.03 -0.01 0.0018 26-Mar-07 142.96 -0.85 -0.83 0.6819 28-Mar-07 140.26 -1.89 -1.87 3.48






returns.


MONTH OF APR-2008

-3.00

-2.00

-1.00

0.00

1.00

2.00

3.00

1 3 5 7 9 11 13 15 17 19

Series1

RETURNS, VARIANCE, AND STANDARD DEVIATION OF HDFC INCOMEFUNDS FOR THE MONTH OF APR-2008

S NO Date NAV RETURNS (X-XBAR) (X-XBAR)2 SD1 2-Apr-07 136.75 -2.50 -2.87 8.252 3-Apr-07 137.88 0.83 0.46 0.213 4-Apr-07 140.01 1.54 1.17 1.384 5-Apr-07 141.04 0.74 0.37 0.145 9-Apr-07 144.22 2.25 1.88 3.546 10-Apr-07 144.48 0.18 -0.19 0.047 11-Apr-07 144.62 0.10 -0.26 0.078 12-Apr-07 143.40 -0.85 -1.22 1.489 13-Apr-07 146.36 2.07 1.70 2.89

10 16-Apr-07 149.17 1.92 1.55 2.4111 17-Apr-07 148.13 -0.70 -1.07 1.1312 18-Apr-07 148.28 0.10 -0.26 0.0713 19-Apr-07 147.67 -0.41 -0.78 0.6114 20-Apr-07 149.70 1.37 1.00 1.0015 23-Apr-07 149.69 -0.01 -0.38 0.1416 24-Apr-07 151.08 0.93 0.57 0.3217 25-Apr-07 151.56 0.31 -0.05 0.0018 26-Apr-07 151.76 0.13 -0.23 0.0519 27-Apr-07 150.19 -1.03 -1.40 1.96






returns.

RETURNS, VARIANCE AND STANDARD DEVIATION OF HDFC INCOMEFUNDS FOR THE MONTH OF MAY-2008


MONTH OF MAY-2008

-1.50

-1.00

-0.50

0.00

0.50

1.00

1.50

2.00

2.50

1 3 5 7 9 11 13 15 17 19

Series1

S NO Date NAV RETURNS (X-XBAR) (X-XBAR)2 SD1 3-May-07 153.17 1.98 1.64 2.692 4-May-07 151.52 -1.07 -1.42 2.013 7-May-07 151.31 -0.14 -0.48 0.234 8-May-07 150.17 -0.75 -1.10 1.205 9-May-07 150.14 -0.02 -0.37 0.136 10-May-07 149.40 -0.49 -0.83 0.697 11-May-07 149.98 0.39 0.05 0.008 14-May-07 152.09 1.40 1.06 1.129 15-May-07 152.67 0.39 0.04 0.00

10 16-May-07 154.31 1.07 0.73 0.5311 17-May-07 155.09 0.50 0.16 0.0312 18-May-07 154.67 -0.27 -0.61 0.3813 21-May-07 156.18 0.98 0.64 0.4114 22-May-07 156.70 0.33 -0.01 0.0015 23-May-07 156.26 -0.28 -0.62 0.3916 24-May-07 155.37 -0.57 -0.91 0.8417 25-May-07 156.35 0.63 0.29 0.0818 28-May-07 158.64 1.47 1.12 1.2619 29-May-07 160.17 0.96 0.62 0.39






returns.

RETURNS, VARIANCE AND STANDARD DEVIATION OF HDFC INCOMEFUNDS FOR THE MONTH OF JUN-2008


MONTH OF JUN-2008

-2.00

-1.50

-1.00

-0.50

0.00

0.50

1.00

1.50

2.00

1 3 5 7 9 11 13 15 17 19

Series1

S NO Date NAV RETURNS (X-XBAR) (X-XBAR)2 SD1 1-Jun-07 161.90 1.08 0.97 0.942 4-Jun-07 160.88 -0.63 -0.74 0.553 5-Jun-07 161.66 0.48 0.36 0.134 6-Jun-07 159.35 -1.43 -1.54 2.375 7-Jun-07 158.50 -0.53 -0.65 0.426 8-Jun-07 157.93 -0.36 -0.48 0.237 11-Jun-07 158.85 0.59 0.47 0.228 12-Jun-07 158.75 -0.07 -0.18 0.039 13-Jun-07 157.55 -0.76 -0.87 0.76

10 14-Jun-07 159.78 1.42 1.30 1.6911 15-Jun-07 159.94 0.10 -0.02 0.0012 18-Jun-07 159.06 -0.55 -0.66 0.4413 19-Jun-07 160.97 1.20 1.08 1.1714 20-Jun-07 162.68 1.06 0.95 0.9015 21-Jun-07 163.95 0.78 0.67 0.4416 22-Jun-07 163.00 -0.58 -0.69 0.4817 25-Jun-07 163.48 0.29 0.18 0.0318 26-Jun-07 164.29 0.50 0.38 0.1519 27-Jun-07 163.61 -0.42 -0.53 0.28





of 0.59 and risk factor being 0.77 thus it can be said that risk is very high when compared to

returns.

RETURNS, VARIANCE AND STANDARD DEVIATION OF HDFC INCOMEFUNDS FOR THE MONTH OF JUL-2008

S NO Date NAV RETURNS (X-XBAR) (X-XBAR)2 SD


MONTH OF JUL-2008

-1.00

-0.50

0.00

0.50

1.00

1.50

2.00

1 3 5 7 9 11 13 15 17 19

Series1

1 2-Jul-07 166.65 1.86 1.55 2.392 3-Jul-07 167.92 0.76 0.45 0.213 4-Jul-07 167.16 -0.45 -0.76 0.584 5-Jul-07 166.71 -0.27 -0.58 0.345 6-Jul-07 167.91 0.72 0.41 0.176 9-Jul-07 169.81 1.13 0.82 0.677 10-Jul-07 169.19 -0.36 -0.67 0.458 11-Jul-07 169.53 0.20 -0.11 0.019 12-Jul-07 171.57 1.20 0.89 0.80

10 13-Jul-07 171.95 0.22 -0.09 0.0111 16-Jul-07 171.71 -0.14 -0.45 0.2012 17-Jul-07 170.31 -0.82 -1.13 1.2713 18-Jul-07 170.13 -0.11 -0.42 0.1814 19-Jul-07 172.02 1.11 0.80 0.6515 20-Jul-07 172.56 0.31 0.00 0.0016 23-Jul-07 174.41 1.07 0.76 0.5817 24-Jul-07 174.39 -0.01 -0.32 0.1018 25-Jul-07 172.96 -0.82 -1.13 1.2819 26-Jul-07 173.46 0.29 -0.02 0.00






returns.


MONTH OF AUG-2008

-5.00

-4.00-3.00

-2.00-1.00

0.001.00

2.003.00

4.00

1 3 5 7 9 11 13 15 17 19Series1

RETURNS, VARIANCE AND STANDARD DEVIATION OF HDFC INCOMEFUNDS FOR THE MONTH OF AUG-2008

S NO Date NAV RETURNS (X-XBAR) (X-XBAR)2 SD1 1-Aug-07 165.82 -4.40 -4.13 17.072 2-Aug-07 167.25 0.86 1.14 1.293 3-Aug-07 169.18 1.15 1.43 2.034 6-Aug-07 167.66 -0.90 -0.63 0.395 7-Aug-07 168.46 0.48 0.75 0.566 8-Aug-07 171.66 1.90 2.18 4.747 9-Aug-07 168.50 -1.84 -1.57 2.478 10-Aug-07 166.58 -1.14 -0.86 0.759 13-Aug-07 167.49 0.55 0.82 0.67

10 14-Aug-07 167.41 -0.05 0.22 0.0511 16-Aug-07 160.87 -3.91 -3.64 13.2212 17-Aug-07 158.65 -1.38 -1.11 1.2313 20-Aug-07 161.45 1.77 2.04 4.1514 21-Aug-07 156.00 -3.38 -3.11 9.6515 22-Aug-07 157.77 1.14 1.41 1.9916 23-Aug-07 156.45 -0.84 -0.56 0.3217 24-Aug-07 158.57 1.36 1.63 2.6518 27-Aug-07 163.29 2.98 3.25 10.5519 28-Aug-07 164.07 0.48 0.75 0.57

MEAN -0.27 VARIANCE 3.91 1.978174




of 3.91 and risk factor being 1.978174 Thus it can be said that risk is very high when compared

to returns.


MONTH OF SEP-2008

-1.00

0.00

1.00

2.00

3.00

4.00

5.00

1 3 5 7 9 11 13 15 17 19

Series1

RETURNS, VARIANCE AND STANDARD DEVIATION OF HDFC INCOMEFUNDS FOR THE MONTH OF SEP-2008

S NO Date NAV RETURNS (X-XBAR) (X-XBAR)2 SD1 3-Sep-07 170.66 4.02 3.49 12.212 4-Sep-07 170.67 0.00 -0.52 0.273 5-Sep-07 170.55 -0.07 -0.59 0.354 6-Sep-07 171.93 0.81 0.29 0.085 7-Sep-07 172.11 0.11 -0.42 0.176 10-Sep-07 172.50 0.22 -0.30 0.097 11-Sep-07 171.56 -0.54 -1.07 1.148 12-Sep-07 171.16 -0.23 -0.76 0.579 13-Sep-07 171.69 0.31 -0.21 0.04

10 14-Sep-07 170.65 -0.61 -1.13 1.2811 17-Sep-07 170.48 -0.10 -0.62 0.3812 18-Sep-07 172.74 1.32 0.80 0.6413 19-Sep-07 176.39 2.11 1.59 2.5314 20-Sep-07 177.42 0.58 0.06 0.0015 21-Sep-07 178.49 0.61 0.08 0.0116 24-Sep-07 179.89 0.79 0.26 0.0717 25-Sep-07 179.56 -0.18 -0.71 0.5018 26-Sep-07 180.00 0.24 -0.28 0.0819 27-Sep-07 180.96 0.53 0.01 0.00





of 1.07 and risk factor being 1.04 Thus it can be said that risk is very high when compared to

returns.

RETURNS, VARIANCE AND STANDARD DEVIATION OF HDFC INCOMEFUNDS FOR THE MONTH OF OCT-2008


MONTH OF OCT-2008

-4.00

-2.00

0.00

2.00

4.00

6.00

1 3 5 7 9 11 13 15 17 19

Series1

S NO Date NAV RETURNS (X-XBAR) (X-XBAR)2 SD1 1-Oct-07 184.17 1.77 1.13 1.272 3-Oct-07 186.08 1.04 0.39 0.153 4-Oct-07 185.77 -0.16 -0.81 0.664 5-Oct-07 186.05 0.15 -0.50 0.255 8-Oct-07 182.43 -1.94 -2.59 6.726 9-Oct-07 187.39 2.72 2.07 4.287 10-Oct-07 189.83 1.30 0.65 0.438 11-Oct-07 193.14 1.74 1.09 1.209 12-Oct-07 189.76 -1.75 -2.39 5.74

10 15-Oct-07 195.81 3.19 2.54 6.4411 16-Oct-07 195.70 -0.06 -0.71 0.5012 17-Oct-07 192.44 -1.66 -2.31 5.3413 18-Oct-07 186.01 -3.35 -3.99 15.9614 19-Oct-07 181.37 -2.49 -3.14 9.8515 22-Oct-07 181.98 0.34 -0.31 0.1016 23-Oct-07 191.23 5.08 4.43 19.6317 24-Oct-07 193.97 1.44 0.79 0.6218 25-Oct-07 197.38 1.76 1.11 1.2319 26-Oct-07 203.73 3.21 2.56 6.58






returns.


MONTH OF NOV-2008

-5.00

-4.00

-3.00

-2.00

-1.00

0.00

1.00

2.00

3.00

4.00

1 3 5 7 9 11 13 15 17 19Series1

RETURNS, VARIANCE AND STANDARD DEVIATION OF HDFC INCOMEFUNDS FOR THE MONTH OF NOV-2008

S NO Date NAV RETURNS (X-XBAR) (X-XBAR)2 SD1 1-Nov-07 209.25 2.71 2.74 7.522 2-Nov-07 211.37 1.02 1.05 1.103 5-Nov-07 208.30 -1.46 -1.42 2.034 6-Nov-07 205.49 -1.35 -1.32 1.735 7-Nov-07 204.62 -0.42 -0.39 0.156 8-Nov-07 201.74 -1.41 -1.38 1.907 12-Nov-07 199.97 -0.88 -0.85 0.728 13-Nov-07 203.63 1.83 1.86 3.479 14-Nov-07 209.76 3.01 3.04 9.27

10 15-Nov-07 210.78 0.49 0.52 0.2711 16-Nov-07 210.36 -0.20 -0.17 0.0312 19-Nov-07 212.45 1.00 1.03 1.0613 20-Nov-07 209.10 -1.58 -1.55 2.3914 21-Nov-07 200.77 -3.98 -3.95 15.6115 22-Nov-07 199.73 -0.52 -0.48 0.2316 23-Nov-07 201.55 0.91 0.94 0.8817 26-Nov-07 204.86 1.65 1.68 2.8118 27-Nov-07 204.04 -0.40 -0.37 0.1419 28-Nov-07 201.96 -1.02 -0.99 0.98






returns.

RETURNS, VARIANCE AND STANDARD DEVIATION OF HDFC INCOME


MONTH OF DEC-2008

-4.00

-3.00

-2.00

-1.00

0.00

1.00

2.00

3.00

4.00

1 3 5 7 9 11 13 15 17 19

Series1

FUNDS FOR THE MONTH OF DEC-2008

S NO Date NAV RETURNS (X-XBAR) (X-XBAR)2 SD1 3-Dec-07 207.92 2.95 2.41 5.832 4-Dec-07 207.71 -0.10 -0.64 0.413 5-Dec-07 211.80 1.97 1.43 2.054 6-Dec-07 212.08 0.13 -0.41 0.175 7-Dec-07 213.23 0.54 0.00 0.006 10-Dec-07 213.45 0.10 -0.43 0.197 11-Dec-07 216.94 1.64 1.10 1.208 12-Dec-07 218.36 0.65 0.11 0.019 13-Dec-07 217.75 -0.28 -0.82 0.67

10 14-Dec-07 216.85 -0.41 -0.95 0.9111 17-Dec-07 209.76 -3.27 -3.81 14.5012 18-Dec-07 209.39 -0.17 -0.71 0.5113 19-Dec-07 209.84 0.22 -0.32 0.1014 20-Dec-07 210.04 0.09 -0.44 0.2015 24-Dec-07 214.74 2.24 1.70 2.8916 26-Dec-07 217.68 1.37 0.83 0.6917 27-Dec-07 218.80 0.51 -0.03 0.0018 28-Dec-07 219.86 0.48 -0.05 0.0019 31-Dec-07 223.32 1.58 1.04 1.08






returns.

GRAPHICAL REPRESENTATION OF RETURNS OF ABN AMRO MUTUAL FUND FOR THE

MONTH OF JAN-2008

-2.50-2.00-1.50-1.00-0.500.000.501.001.502.002.50

1 3 5 7 9 11 13 15 17 19

Series1

RETURNS, VARIANCE AND STANDARD DEVIATION OF ABN INCOMEFUNDS FOR THE MONTH OF JAN-2008

S.NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD27.3

1 2-Jan-07 27.52 0.81 0.72 0.522 3-Jan-07 27.76 0.87 0.79 0.623 4-Jan-07 27.82 0.22 0.13 0.024 5-Jan-07 27.72 -0.36 -0.45 0.205 8-Jan-07 27.4 -1.15 -1.24 1.546 9-Jan-07 27.22 -0.66 -0.74 0.557 10-Jan-07 26.7 -1.91 -2.00 3.998 11-Jan-07 27.23 1.99 1.90 3.619 12-Jan-07 27.75 1.91 1.82 3.33

10 15-Jan-07 27.9 0.54 0.45 0.2111 16-Jan-07 28.03 0.47 0.38 0.1412 17-Jan-07 28.14 0.39 0.31 0.0913 18-Jan-07 28.26 0.43 0.34 0.1214 19-Jan-07 28.03 -0.81 -0.90 0.8115 22-Jan-07 28 -0.11 -0.19 0.0416 23-Jan-07 27.42 -2.07 -2.16 4.6517 24-Jan-07 27.55 0.47 0.39 0.1518 25-Jan-07 27.79 0.87 0.79 0.6219 29-Jan-07 27.72 -0.25 -0.34 0.11



The above graph represents the returns of ABN income fund it shows that there is continuous



returns.

RETURNS, VARIANCE AND STANDARD DEVIATION OF ABN INCOMEFUNDS FOR THE MONTH OF FEB-2008


MONTH OF JAN-2008

-5.00

-4.00

-3.00

-2.00

-1.00

0.00

1.00

2.00

3.00

4.00

1 3 5 7 9 11 13 15 17 19Series1

S.NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD1 1-Feb-07 27.5 -0.79 -0.26 0.072 2-Feb-07 27.7 0.73 1.27 1.603 5-Feb-07 27.86 0.58 1.12 1.244 6-Feb-07 27.86 0.00 0.54 0.295 7-Feb-07 28.06 0.72 1.26 1.586 8-Feb-07 27.98 -0.29 0.25 0.067 9-Feb-07 27.49 -1.75 -1.21 1.478 12-Feb-07 26.31 -4.29 -3.75 14.109 13-Feb-07 26.11 -0.76 -0.22 0.05

10 14-Feb-07 26.04 -0.27 0.27 0.0711 15-Feb-07 26.77 2.80 3.34 11.1612 19-Feb-07 26.9 0.49 1.02 1.0513 20-Feb-07 26.67 -0.86 -0.32 0.1014 21-Feb-07 26.79 0.45 0.99 0.9815 22-Feb-07 26.43 -1.34 -0.81 0.6516 23-Feb-07 25.75 -2.57 -2.03 4.1417 26-Feb-07 25.79 0.16 0.69 0.4818 27-Feb-07 25.81 0.08 0.62 0.3819 28-Feb-07 24.96 -3.29 -2.76 7.59






returns.

GRAPHICAT REPRESENTATION OF RETURNS OF ABN AMRO MUTUAL FOND FOR THE

MONTH OF MAR-2008

-6.00

-4.00

-2.00

0.00

2.00

4.00

1 3 5 7 9 11 13 15 17 19 Series1

RETURNS, VARIANCE AND STANDARD DEVIATION OF ABN INCOMEFUNDS FOR THE MONTH OF MAR-2008

S.NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD1 1-Mar-07 25.06 0.40 0.42 0.182 2-Mar-07 24.49 -2.27 -2.25 5.073 5-Mar-07 23.29 -4.90 -4.88 23.784 6-Mar-07 23.73 1.89 1.91 3.665 7-Mar-07 23.35 -1.60 -1.58 2.496 8-Mar-07 24.17 3.51 3.53 12.497 9-Mar-07 23.97 -0.83 -0.80 0.658 12-Mar-07 24.27 1.25 1.27 1.629 13-Mar-07 24.67 1.65 1.67 2.79

10 14-Mar-07 24.05 -2.51 -2.49 6.2011 15-Mar-07 24.23 0.75 0.77 0.6012 16-Mar-07 24.05 -0.74 -0.72 0.5213 19-Mar-07 24.36 1.29 1.31 1.7214 20-Mar-07 24.64 1.15 1.17 1.3715 21-Mar-07 24.85 0.85 0.88 0.7716 22-Mar-07 25.41 2.25 2.28 5.1817 23-Mar-07 25.44 0.12 0.14 0.0218 26-Mar-07 25.19 -0.98 -0.96 0.9219 28-Mar-07 24.76 -1.71 -1.68 2.84






returns.

RETURNS, VARIANCE AND STANDARD DEVIATION OF ABN INCOME

GRAPHICAL REPRESENTATION OF RETURNS OF ABN AMRO MUTUAL FOND FOR THE

MONTH OF APR-2008

-4.00

-3.00

-2.00

-1.00

0.00

1.00

2.00

3.00

4.00

1 3 5 7 9 11 13 15 17 19

Series1

FUNDS FOR THE MONTH OF APR-2008

S.NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD1 2-Apr-07 24.07 -2.79 -3.26 10.642 3-Apr-07 24.26 0.79 0.31 0.103 4-Apr-07 24.39 0.54 0.06 0.004 5-Apr-07 24.65 1.07 0.59 0.355 9-Apr-07 25.29 2.60 2.12 4.506 10-Apr-07 25.41 0.47 0.00 0.007 11-Apr-07 25.43 0.08 -0.40 0.168 12-Apr-07 25.3 -0.51 -0.99 0.979 13-Apr-07 26.01 2.81 2.33 5.44

10 16-Apr-07 26.55 2.08 1.60 2.5611 17-Apr-07 26.23 -1.21 -1.68 2.8212 18-Apr-07 26.24 0.04 -0.44 0.1913 19-Apr-07 26.33 0.34 -0.13 0.0214 20-Apr-07 26.91 2.20 1.73 2.9915 23-Apr-07 26.89 -0.07 -0.55 0.3016 24-Apr-07 27.43 2.01 1.53 2.3517 25-Apr-07 27.59 0.58 0.11 0.0118 26-Apr-07 27.55 -0.14 -0.62 0.3819 27-Apr-07 27.04 -1.85 -2.33 5.41






returns.

GRAPHICAL REPRESENTATION OF RETURNS GOF ABN AMRO MUTUAL FOND FOR THE

MONTH OF MAY-2008

-1.50

-1.00-0.50

0.000.50

1.001.50

2.002.50

3.00

1 3 5 7 9 11 13 15 17 19

Series1

RETURNS, VARIANCE AND STANDARD DEVIATION OF ABN INCOMEFUNDS FOR THE MONTH OF MAY-2008

S.NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD1 3-May-07 27.59 2.03 1.55 2.412 4-May-07 27.35 -0.87 -1.35 1.823 7-May-07 27.19 -0.59 -1.07 1.134 8-May-07 26.99 -0.74 -1.22 1.485 9-May-07 27.26 1.00 0.52 0.276 10-May-07 27.15 -0.40 -0.88 0.787 11-May-07 27.33 0.66 0.18 0.038 14-May-07 27.77 1.61 1.13 1.289 15-May-07 27.9 0.47 -0.01 0.00

10 16-May-07 28.59 2.47 1.99 3.9711 17-May-07 28.94 1.22 0.74 0.5512 18-May-07 28.94 0.00 -0.48 0.2313 21-May-07 29.24 1.04 0.56 0.3114 22-May-07 29.36 0.41 -0.07 0.0015 23-May-07 29.07 -0.99 -1.47 2.1616 24-May-07 28.83 -0.83 -1.31 1.7117 25-May-07 29.04 0.73 0.25 0.0618 28-May-07 29.38 1.17 0.69 0.4819 29-May-07 29.59 0.71 0.23 0.05






returns.

GRAPHICAL REPRESENTATION OF RETUNS OF ABN AMRO MUTUAL FONDAS FOR THE MONTH

OF JUN-2008

-3.00

-2.00

-1.00

0.00

1.00

2.00

3.00

1 3 5 7 9 11 13 15 17 19

Series1

RETURNS, VARIANCE AND STANDARD DEVIATION OF ABN INCOMEFUNDS FOR THE MONTH OF JUN-2008

S.NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD1 1-Jun-07 29.7 0.37 0.24 0.062 4-Jun-07 29.49 -0.71 -0.84 0.713 5-Jun-07 29.62 0.44 0.31 0.094 6-Jun-07 28.87 -2.53 -2.67 7.115 7-Jun-07 28.62 -0.87 -1.00 1.006 8-Jun-07 28.35 -0.94 -1.08 1.167 11-Jun-07 28.42 0.25 0.11 0.018 12-Jun-07 28.19 -0.81 -0.94 0.899 13-Jun-07 28.08 -0.39 -0.52 0.28

10 14-Jun-07 28.71 2.24 2.11 4.4511 15-Jun-07 28.75 0.14 0.00 0.0012 18-Jun-07 28.67 -0.28 -0.41 0.1713 19-Jun-07 29.18 1.78 1.64 2.7014 20-Jun-07 29.69 1.75 1.61 2.6015 21-Jun-07 30.04 1.18 1.04 1.0916 22-Jun-07 30.12 0.27 0.13 0.0217 25-Jun-07 30.21 0.30 0.16 0.0318 26-Jun-07 30.4 0.63 0.49 0.2419 27-Jun-07 30.32 -0.26 -0.40 0.16






returns.


MONTH OF JUL-2008

-1.50

-1.00

-0.50

0.00

0.50

1.00

1.50

2.00

2.50

1 3 5 7 9 11 13 15 17 19

Series1

RETURNS, VARIANCE AND STANDARD DEVIATION OF ABN INCOMEFUNDS FOR THE MONTH OF JUL-2008

S.NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD1 2-Jul-07 30.97 2.14 1.66 2.772 3-Jul-07 31.6 2.03 1.55 2.423 4-Jul-07 31.65 0.16 -0.32 0.104 5-Jul-07 31.46 -0.60 -1.08 1.175 6-Jul-07 31.68 0.70 0.22 0.056 9-Jul-07 32.02 1.07 0.59 0.357 10-Jul-07 31.78 -0.75 -1.23 1.518 11-Jul-07 32.05 0.85 0.37 0.149 12-Jul-07 32.61 1.75 1.27 1.61

10 13-Jul-07 32.96 1.07 0.59 0.3511 16-Jul-07 33.11 0.46 -0.02 0.0012 17-Jul-07 33.04 -0.21 -0.69 0.4813 18-Jul-07 32.83 -0.64 -1.12 1.2414 19-Jul-07 33.18 1.07 0.59 0.3415 20-Jul-07 33.05 -0.39 -0.87 0.7616 23-Jul-07 33.41 1.09 0.61 0.3717 24-Jul-07 33.48 0.21 -0.27 0.0718 25-Jul-07 33.04 -1.31 -1.79 3.2219 26-Jul-07 33.18 0.42 -0.06 0.00






returns.

GARPHICAL REPRESENTATION OF RETURNS OF ABN MUTUAL FUND FOR THE MONTH OF

AUG-2008

-8.00

-6.00

-4.00

-2.00

0.00

2.00

4.00

6.00

1 3 5 7 9 11 13 15 17 19Series1

RETURNS, VARIANCE AND STANDARD DEVIATION OF ABN INCOMEFUNDS FOR THE MONTH OF AUG-2008

S.NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD1 1-Aug-07 31.02 -6.51 -6.02 36.202 2-Aug-07 31.21 0.61 1.11 1.223 3-Aug-07 31.68 1.51 2.00 4.004 6-Aug-07 31.21 -1.48 -0.99 0.985 7-Aug-07 31.25 0.13 0.62 0.396 8-Aug-07 31.8 1.76 2.25 5.087 9-Aug-07 31.1 -2.20 -1.71 2.928 10-Aug-07 30.39 -2.28 -1.79 3.209 13-Aug-07 30.76 1.22 1.71 2.93







returns.

RETURNS, VARIANCE AND STANDARD DEVIATION OF ABN INCOMEFUNDS FOR THE MONTH OF SEP-2008

GRAPHICAL REPRESEANTATION OF RETURNS OF ABN AMRO MUTUAL FUND FOR THE

MONTH OF SEP-2008

-2.00

-1.00

0.00

1.00

2.00

3.00

4.00

5.00

1 3 5 7 9 11 13 15 17 19

Series1

S.NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD1 3-Sep-07 31.42 4.66 3.88 15.042 4-Sep-07 31.55 0.41 -0.37 0.143 5-Sep-07 31.33 -0.70 -1.48 2.204 6-Sep-07 31.71 1.21 0.43 0.185 7-Sep-07 31.58 -0.41 -1.20 1.436 10-Sep-07 31.9 1.01 0.23 0.057 11-Sep-07 31.85 -0.16 -0.94 0.898 12-Sep-07 32.06 0.66 -0.13 0.029 13-Sep-07 32.45 1.22 0.43 0.19

10 14-Sep-07 32.31 -0.43 -1.22 1.4811 17-Sep-07 32.26 -0.15 -0.94 0.8812 18-Sep-07 32.54 0.87 0.08 0.0113 19-Sep-07 33.49 2.92 2.13 4.5514 20-Sep-07 33.86 1.10 0.32 0.1015 21-Sep-07 34.65 2.33 1.55 2.4016 24-Sep-07 35.27 1.79 1.00 1.0117 25-Sep-07 34.93 -0.96 -1.75 3.0618 26-Sep-07 34.74 -0.54 -1.33 1.7719 27-Sep-07 34.77 0.09 -0.70 0.49






returns.

GRAPHICAL REPRESENTATION OF RETURNS OF ABN AMRO MUTUSL FUND FOR THE

MONTH OF OCT-2008

-6.00

-4.00

-2.00

0.00

2.00

4.00

6.00

8.00

1 3 5 7 9 11 13 15 17 19

Series1

RETURNS, VARIANCE AND STANDARD DEVIATION OF ABN INCOMEFUNDS FOR THE MONTH OF OCT-2008

S.NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD1 1-Oct-07 35.84 3.08 2.37 5.632 3-Oct-07 36.5 1.84 1.14 1.293 4-Oct-07 36.82 0.88 0.17 0.034 5-Oct-07 36.49 -0.90 -1.60 2.565 8-Oct-07 35.37 -3.07 -3.77 14.246 9-Oct-07 37.17 5.09 4.38 19.227 10-Oct-07 37.99 2.21 1.50 2.258 11-Oct-07 38.8 2.13 1.43 2.049 12-Oct-07 38.03 -1.98 -2.69 7.23

10 15-Oct-07 39.31 3.37 2.66 7.0811 16-Oct-07 39.44 0.33 -0.37 0.1412 17-Oct-07 38.45 -2.51 -3.21 10.3313 18-Oct-07 36.68 -4.60 -5.31 28.1714 19-Oct-07 35.48 -3.27 -3.98 15.8115 22-Oct-07 35.31 -0.48 -1.18 1.4016 23-Oct-07 37.59 6.46 5.75 33.0917 24-Oct-07 38.19 1.60 0.89 0.7918 25-Oct-07 38.48 0.76 0.05 0.0019 26-Oct-07 39.43 2.47 1.76 3.11






returns.

RETURNS, VARIANCE AND STANDARD DEVIATION OF ABN INCOMEFUNDS FOR THE MONTH OF NOV-2008


MONTH OF NOV -2008

-6.00

-4.00

-2.00

0.00

2.00

4.00

6.00

1 3 5 7 9 11 13 15 17 19

Series1

S.NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD1 1-Nov-07 40.87 3.65 3.53 12.482 2-Nov-07 41.35 1.17 1.06 1.113 5-Nov-07 41.1 -0.60 -0.72 0.524 6-Nov-07 40.52 -1.41 -1.53 2.345 7-Nov-07 40.66 0.35 0.23 0.056 8-Nov-07 40.14 -1.28 -1.40 1.967 12-Nov-07 39.62 -1.30 -1.41 2.008 13-Nov-07 40.25 1.59 1.47 2.169 14-Nov-07 41.43 2.93 2.81 7.91

10 15-Nov-07 41.42 -0.02 -0.14 0.0211 16-Nov-07 41.52 0.24 0.12 0.0112 19-Nov-07 42.04 1.25 1.13 1.2813 20-Nov-07 41.09 -2.26 -2.38 5.6614 21-Nov-07 39.1 -4.84 -4.96 24.6315 22-Nov-07 39.02 -0.20 -0.32 0.1016 23-Nov-07 39.77 1.92 1.80 3.2517 26-Nov-07 40.64 2.19 2.07 4.2818 27-Nov-07 40.61 -0.07 -0.19 0.0419 28-Nov-07 40.19 -1.03 -1.15 1.33






returns.

RETURNS, VARIANCE AND STANDARD DEVIATION OF ABN INCOMEFUNDS FOR THE MONTH OF DEC-2008

S.NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD

GRAPHICAL REPRESENTATION OF RETURNS OF ABN MUTUAL FUND FOR THE MONTH OF

DEC-2008

-6.00

-4.00

-2.00

0.00

2.00

4.00

6.00

1 3 5 7 9 11 13 15 17

Series1

1 3-Dec-07 42.12 4.80 4.10 16.812 4-Dec-07 42.64 1.23 0.53 0.283 5-Dec-07 43.43 1.85 1.15 1.324 6-Dec-07 43.3 -0.30 -1.00 1.005 7-Dec-07 43.44 0.32 -0.38 0.146 10-Dec-07 43.46 0.05 -0.66 0.437 11-Dec-07 44.07 1.40 0.70 0.498 12-Dec-07 44.68 1.38 0.68 0.479 13-Dec-07 44.52 -0.36 -1.06 1.12

10 14-Dec-07 44.51 -0.02 -0.72 0.5311 17-Dec-07 42.52 -4.47 -5.17 26.7612 18-Dec-07 42.35 -0.40 -1.10 1.2113 19-Dec-07 42.26 -0.21 -0.91 0.8414 20-Dec-07 42.13 -0.31 -1.01 1.0215 24-Dec-07 43.46 3.16 2.45 6.0316 26-Dec-07 44.47 2.32 1.62 2.6317 27-Dec-07 44.38 -0.20 -0.90 0.8218 28-Dec-07 44.9 1.17 0.47 0.2219 31-Dec-07 45.76 1.92 1.21 1.47






returns.

RETURNS, VARIANCE AND STANDARD DEVIATION OF BIRLA INCOMEFUNDS FOR THE MONTH OF JAN-2008

S NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD11

1 2-Jan-07 11.1 0.91 0.75 0.572 3-Jan-07 11.22 1.08 0.93 0.86

GRAPHICAL REPRESENTATION OF RETURNS OF BIRLA AMRO MUTUAL FUND FOR THE

MONTH OF JAN-2008

-2.00

-1.50

-1.00

-0.50

0.00

0.50

1.00

1.50

1 3 5 7 9 11 13 15 17 19Series1

3 4-Jan-07 11.19 -0.27 -0.42 0.184 5-Jan-07 11.13 -0.54 -0.69 0.485 8-Jan-07 11.03 -0.90 -1.05 1.116 9-Jan-07 10.91 -1.09 -1.24 1.547 10-Jan-07 10.81 -0.92 -1.07 1.158 11-Jan-07 10.92 1.02 0.86 0.759 12-Jan-07 11.05 1.19 1.04 1.07

10 15-Jan-07 11.12 0.63 0.48 0.2311 16-Jan-07 11.15 0.27 0.12 0.0112 17-Jan-07 11.23 0.72 0.56 0.3213 18-Jan-07 11.33 0.89 0.74 0.5414 19-Jan-07 11.28 -0.44 -0.60 0.3515 22-Jan-07 11.33 0.44 0.29 0.0816 23-Jan-07 11.17 -1.41 -1.57 2.4517 24-Jan-07 11.24 0.63 0.47 0.2218 25-Jan-07 11.32 0.71 0.56 0.3119 29-Jan-07 11.32 0.00 -0.15 0.02



The above graph represents the returns of BIRLA income fund it shows that there is continuous



returns.

RETURNS, VARIANCE AND STANDARD DEVIATION OF BIRLA INCOMEFUNDS FOR THE MONTH OF FEB-2008

S NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD1 1-Feb-07 11.32 0.00 0.48 0.232 2-Feb-07 11.47 1.33 1.80 3.263 5-Feb-07 11.49 0.17 0.65 0.434 6-Feb-07 11.44 -0.44 0.04 0.005 7-Feb-07 11.53 0.79 1.27 1.60


MONTH OF FEB-2008

-5.00

-4.00

-3.00

-2.00

-1.00

0.00

1.00

2.00

3.00

1 3 5 7 9 11 13 15 17 19 Series1

6 8-Feb-07 11.51 -0.17 0.31 0.097 9-Feb-07 11.28 -2.00 -1.52 2.318 12-Feb-07 10.87 -3.63 -3.16 9.969 13-Feb-07 10.82 -0.46 0.02 0.00

10 14-Feb-07 10.83 0.09 0.57 0.3311 15-Feb-07 11.1 2.49 2.97 8.8312 19-Feb-07 11.12 0.18 0.66 0.4313 20-Feb-07 11.06 -0.54 -0.06 0.0014 21-Feb-07 11 -0.54 -0.06 0.0015 22-Feb-07 10.91 -0.82 -0.34 0.1116 23-Feb-07 10.7 -1.92 -1.45 2.0917 26-Feb-07 10.77 0.65 1.13 1.2818 27-Feb-07 10.74 -0.28 0.20 0.0419 28-Feb-07 10.31 -4.00 -3.52 12.42






returns.

RETURNS, VARIANCE AND STANDARD DEVIATION OF BIRLA INCOMEFUNDS FOR THE MONTH OF MAR-2008

S NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD1 1-Mar-07 10.44 1.26 1.26 1.602 2-Mar-07 10.34 -0.96 -0.95 0.913 5-Mar-07 9.94 -3.87 -3.86 14.934 6-Mar-07 9.98 0.40 0.41 0.175 7-Mar-07 9.84 -1.40 -1.40 1.966 8-Mar-07 10.1 2.64 2.65 7.007 9-Mar-07 10.06 -0.40 -0.39 0.15


MONTH OF MAR-2008

-5.00

-4.00

-3.00

-2.00

-1.00

0.00

1.00

2.00

3.00

1 3 5 7 9 11 13 15 17 19 Series1

8 12-Mar-07 10.07 0.10 0.10 0.019 13-Mar-07 10.19 1.19 1.20 1.43







returns.


MONTH OF APR-2008

-4.00

-3.00

-2.00

-1.00

0.00

1.00

2.00

3.00

1 3 5 7 9 11 13 15 17 19Series1

RETURNS, VARIANCE AND STANDARD DEVIATION OF BIRLA INCOMEFUNDS FOR THE MONTH OF APR-2008

S NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD1 2-Apr-07 9.98 -2.92 -3.23 10.452 3-Apr-07 10.05 0.70 0.39 0.153 4-Apr-07 10.09 0.40 0.08 0.014 5-Apr-07 10.18 0.89 0.58 0.335 9-Apr-07 10.4 2.16 1.85 3.416 10-Apr-07 10.48 0.77 0.45 0.217 11-Apr-07 10.56 0.76 0.45 0.208 12-Apr-07 10.54 -0.19 -0.50 0.259 13-Apr-07 10.72 1.71 1.39 1.94

10 16-Apr-07 10.83 1.03 0.71 0.5111 17-Apr-07 10.79 -0.37 -0.68 0.4712 18-Apr-07 10.79 0.00 -0.31 0.1013 19-Apr-07 10.81 0.19 -0.13 0.0214 20-Apr-07 10.88 0.65 0.33 0.1115 23-Apr-07 10.85 -0.28 -0.59 0.3516 24-Apr-07 11 1.38 1.07 1.1417 25-Apr-07 11.09 0.82 0.50 0.2518 26-Apr-07 11.01 -0.72 -1.04 1.0719 27-Apr-07 10.9 -1.00 -1.31 1.73






returns.


MONTH OF MAY-2008

-1.00

-0.500.00

0.50

1.001.50

2.00

2.503.00

3.50

1 3 5 7 9 11 13 15 17 19

Series1

RETURNS, VARIANCE AND STANDARD DEVIATION OF BIRLA INCOMEFUNDS FOR THE MONTH OF MAY-2008

S NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD1 3-May-07 11.21 2.84 2.30 5.282 4-May-07 11.32 0.98 0.44 0.193 7-May-07 11.27 -0.44 -0.99 0.974 8-May-07 11.18 -0.80 -1.34 1.815 9-May-07 11.26 0.72 0.17 0.036 10-May-07 11.34 0.71 0.16 0.037 11-May-07 11.41 0.62 0.07 0.018 14-May-07 11.56 1.31 0.77 0.599 15-May-07 11.53 -0.26 -0.81 0.65

10 16-May-07 11.68 1.30 0.76 0.5711 17-May-07 11.75 0.60 0.05 0.0012 18-May-07 11.76 0.09 -0.46 0.2113 21-May-07 11.86 0.85 0.30 0.0914 22-May-07 11.92 0.51 -0.04 0.0015 23-May-07 11.91 -0.08 -0.63 0.4016 24-May-07 11.84 -0.59 -1.13 1.2817 25-May-07 11.9 0.51 -0.04 0.0018 28-May-07 12 0.84 0.29 0.0919 29-May-07 12.08 0.67 0.12 0.01






returns.


MONTH OF JUN-2008

-1.50

-1.00

-0.50

0.00

0.50

1.00

1.50

2.00

1 3 5 7 9 11 13 15 17

Series1

RETURNS, VARIANCE AND STANDARD DEVIATION OF BIRLA INCOMEFUNDS FOR THE MONTH OF JUN-2008

S NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD1 1-Jun-07 12.2 0.99 0.92 0.842 4-Jun-07 12.08 -0.98 -1.06 1.123 5-Jun-07 12.09 0.08 0.01 0.004 6-Jun-07 11.98 -0.91 -0.99 0.975 7-Jun-07 11.97 -0.08 -0.16 0.036 8-Jun-07 11.87 -0.84 -0.91 0.837 11-Jun-07 11.85 -0.17 -0.24 0.068 12-Jun-07 11.73 -1.01 -1.09 1.199 13-Jun-07 11.65 -0.68 -0.76 0.58

10 14-Jun-07 11.82 1.46 1.38 1.9111 15-Jun-07 11.9 0.68 0.60 0.3612 18-Jun-07 11.84 -0.50 -0.58 0.3413 19-Jun-07 11.95 0.93 0.85 0.7314 20-Jun-07 12.11 1.34 1.26 1.5915 21-Jun-07 12.17 0.50 0.42 0.1816 22-Jun-07 12.19 0.16 0.09 0.0117 25-Jun-07 12.23 0.33 0.25 0.0618 26-Jun-07 12.23 0.00 -0.08 0.0119 27-Jun-07 12.25 0.16 0.09 0.01






returns.


MONTH OF JUL-2008

-1.50

-1.00

-0.50

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

1 3 5 7 9 11 13 15 17 19

Series1

RETURNS, VARIANCE AND STANDARD DEVIATION OF BIRLA INCOMEFUNDS FOR THE MONTH OF JUL-2008

S NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD1 2-Jul-07 12.64 3.18 2.84 8.052 3-Jul-07 12.75 0.87 0.52 0.273 4-Jul-07 12.73 -0.16 -0.50 0.254 5-Jul-07 12.71 -0.16 -0.50 0.255 6-Jul-07 12.79 0.63 0.28 0.086 9-Jul-07 12.83 0.31 -0.03 0.007 10-Jul-07 12.74 -0.70 -1.05 1.108 11-Jul-07 12.73 -0.08 -0.42 0.189 12-Jul-07 12.95 1.73 1.38 1.91

10 13-Jul-07 13.07 0.93 0.58 0.3411 16-Jul-07 13.18 0.84 0.50 0.2512 17-Jul-07 13.08 -0.76 -1.11 1.2213 18-Jul-07 13.08 0.00 -0.35 0.1214 19-Jul-07 13.19 0.84 0.49 0.2415 20-Jul-07 13.15 -0.30 -0.65 0.4216 23-Jul-07 13.17 0.15 -0.19 0.0417 24-Jul-07 13.12 -0.38 -0.73 0.5318 25-Jul-07 12.96 -1.22 -1.57 2.4519 26-Jul-07 13.07 0.85 0.50 0.25






returns.


MONTH OF AUG-2008

-4.00

-3.00

-2.00

-1.00

0.00

1.00

2.00

3.00

1 3 5 7 9 11 13 15 17 19Series1

RETURNS, VARIANCE AND STANDARD DEVIATION OF BIRLA INCOMEFUNDS FOR THE MONTH OF AUG-2008

S NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD1 1-Aug-07 12.63 -3.37 -3.12 9.722 2-Aug-07 12.71 0.63 0.88 0.783 3-Aug-07 12.83 0.94 1.19 1.424 6-Aug-07 12.7 -1.01 -0.77 0.595 7-Aug-07 12.72 0.16 0.41 0.166 8-Aug-07 12.92 1.57 1.82 3.317 9-Aug-07 12.76 -1.24 -0.99 0.988 10-Aug-07 12.61 -1.18 -0.93 0.869 13-Aug-07 12.7 0.71 0.96 0.93

10 14-Aug-07 12.62 -0.63 -0.38 0.1511 16-Aug-07 12.31 -2.46 -2.21 4.8812 17-Aug-07 12.18 -1.06 -0.81 0.6513 20-Aug-07 12.3 0.99 1.23 1.5214 21-Aug-07 11.94 -2.93 -2.68 7.1715 22-Aug-07 12.02 0.67 0.92 0.8416 23-Aug-07 12.01 -0.08 0.17 0.0317 24-Aug-07 12.16 1.25 1.50 2.2418 27-Aug-07 12.45 2.38 2.63 6.9319 28-Aug-07 12.44 -0.08 0.17 0.03






returns.


MONTH OF SEP-2008

-2.00

-1.00

0.00

1.00

2.00

3.00

4.00

1 3 5 7 9 11 13 15 17 19

Series1

RETURNS, VARIANCE AND STANDARD DEVIATION OF BIRLA INCOMEFUNDS FOR THE MONTH OF SEP-2008

S NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD1 3-Sep-07 12.88 3.54 3.04 9.212 4-Sep-07 12.97 0.70 0.20 0.043 5-Sep-07 12.96 -0.08 -0.58 0.344 6-Sep-07 13 0.31 -0.19 0.045 7-Sep-07 12.96 -0.31 -0.81 0.666 10-Sep-07 12.95 -0.08 -0.58 0.347 11-Sep-07 12.94 -0.08 -0.58 0.348 12-Sep-07 12.92 -0.15 -0.66 0.439 13-Sep-07 13.06 1.08 0.58 0.34

10 14-Sep-07 12.93 -1.00 -1.50 2.2411 17-Sep-07 12.91 -0.15 -0.66 0.4312 18-Sep-07 13.01 0.77 0.27 0.0713 19-Sep-07 13.23 1.69 1.19 1.4114 20-Sep-07 13.28 0.38 -0.12 0.0215 21-Sep-07 13.33 0.38 -0.13 0.0216 24-Sep-07 13.5 1.28 0.77 0.6017 25-Sep-07 13.5 0.00 -0.50 0.2518 26-Sep-07 13.59 0.67 0.16 0.0319 27-Sep-07 13.67 0.59 0.09 0.01






returns.


MONTH OF OCT-2008

-4.00

-3.00

-2.00

-1.00

0.00

1.00

2.00

3.00

4.00

5.00

1 3 5 7 9 11 13 15 17 19

Series1

RETURNS, VARIANCE AND STANDARD DEVIATION OF BIRLA INCOMEFUNDS FOR THE MONTH OF OCT-2008

S NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD1 1-Oct-07 13.98 2.27 1.78 3.152 3-Oct-07 14.29 2.22 1.73 2.983 4-Oct-07 14.25 -0.28 -0.77 0.604 5-Oct-07 14.12 -0.91 -1.40 1.975 8-Oct-07 13.78 -2.41 -2.90 8.416 9-Oct-07 14.24 3.34 2.85 8.107 10-Oct-07 14.53 2.04 1.54 2.388 11-Oct-07 14.77 1.65 1.16 1.349 12-Oct-07 14.65 -0.81 -1.30 1.70

10 15-Oct-07 15.05 2.73 2.24 5.0111 16-Oct-07 15.18 0.86 0.37 0.1412 17-Oct-07 14.8 -2.50 -3.00 8.9713 18-Oct-07 14.41 -2.64 -3.13 9.7814 19-Oct-07 14.02 -2.71 -3.20 10.2315 22-Oct-07 14.04 0.14 -0.35 0.1216 23-Oct-07 14.57 3.77 3.28 10.7817 24-Oct-07 14.6 0.21 -0.29 0.0818 25-Oct-07 14.75 1.03 0.54 0.2919 26-Oct-07 14.95 1.36 0.86 0.75






returns.


MONTH OF NOV-2008

-5.00

-4.00

-3.00

-2.00

-1.00

0.00

1.00

2.00

3.00

1 3 5 7 9 11 13 15 17 19 Series1

RETURNS, VARIANCE AND STANDARD DEVIATION OF BIRLA INCOMEFUNDS FOR THE MONTH OF NOV-2008

S NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD1 1-Nov-07 14.91 -0.27 -0.23 0.052 2-Nov-07 14.97 0.40 0.44 0.203 5-Nov-07 14.98 0.07 0.11 0.014 6-Nov-07 14.9 -0.53 -0.49 0.245 7-Nov-07 14.83 -0.47 -0.43 0.196 8-Nov-07 14.58 -1.69 -1.65 2.717 12-Nov-07 14.54 -0.27 -0.24 0.068 13-Nov-07 14.84 2.06 2.10 4.429 14-Nov-07 15.09 1.68 1.72 2.97

10 15-Nov-07 15.11 0.13 0.17 0.0311 16-Nov-07 15.19 0.53 0.57 0.3212 19-Nov-07 15.48 1.91 1.95 3.8013 20-Nov-07 15.29 -1.23 -1.19 1.4114 21-Nov-07 14.65 -4.19 -4.15 17.1915 22-Nov-07 14.48 -1.16 -1.12 1.2616 23-Nov-07 14.61 0.90 0.94 0.8817 26-Nov-07 14.86 1.71 1.75 3.0618 27-Nov-07 14.83 -0.20 -0.16 0.0319 28-Nov-07 14.81 -0.13 -0.10 0.01






returns.


MONTH OF DEC-2008

-4.00

-3.00-2.00

-1.00

0.001.00

2.00

3.004.00

5.00

1 3 5 7 9 11 13 15 17 19

Series1

RETURNS, VARIANCE AND STANDARD DEVIATION OF BIRLA INCOMEFUNDS FOR THE MONTH OF DEC-2008

S NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD1 3-Dec-07 15.45 4.32 3.54 12.562 4-Dec-07 15.55 0.65 -0.13 0.023 5-Dec-07 15.82 1.74 0.96 0.924 6-Dec-07 15.91 0.57 -0.21 0.045 7-Dec-07 15.96 0.31 -0.46 0.216 10-Dec-07 16.07 0.69 -0.09 0.017 11-Dec-07 16.36 1.80 1.03 1.068 12-Dec-07 16.54 1.10 0.32 0.109 13-Dec-07 16.51 -0.18 -0.96 0.92

10 14-Dec-07 16.58 0.42 -0.35 0.1211 17-Dec-07 16.08 -3.02 -3.79 14.3912 18-Dec-07 15.95 -0.81 -1.59 2.5113 19-Dec-07 15.91 -0.25 -1.03 1.0614 20-Dec-07 15.8 -0.69 -1.47 2.1615 24-Dec-07 16.19 2.47 1.69 2.8616 26-Dec-07 16.53 2.10 1.32 1.7517 27-Dec-07 16.49 -0.24 -1.02 1.0418 28-Dec-07 16.81 1.94 1.16 1.3519 31-Dec-07 17.12 1.84 1.07 1.14






returns.

GRAPHICAL REPRESENTATION OF RETURNS OF FIDELITY AMRO MUTUAL FUND OFR THE

MONTH OF JAN-2008

-2.00

-1.00

0.00

1.00

2.00

3.00

4.00

5.00

6.00

1 3 5 7 9 11 13 15 17 19

Series1

RETURNS, VARIANCE AND STANDARD DEVIATION OF FIDELITY INCOMEFUNDS FOR THE MONTH OF JAN-2008

S NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD20

1 2-Jan-07 21.055 5.28 4.81 23.182 3-Jan-07 21.2 0.69 0.23 0.053 4-Jan-07 21.169 -0.15 -0.61 0.374 5-Jan-07 21.158 -0.05 -0.51 0.265 8-Jan-07 20.974 -0.87 -1.33 1.776 9-Jan-07 20.821 -0.73 -1.19 1.427 10-Jan-07 20.563 -1.24 -1.70 2.898 11-Jan-07 20.848 1.39 0.93 0.869 12-Jan-07 21.376 2.53 2.07 4.29

10 15-Jan-07 21.538 0.76 0.30 0.0911 16-Jan-07 21.535 -0.01 -0.47 0.2312 17-Jan-07 21.608 0.34 -0.12 0.0113 18-Jan-07 21.653 0.21 -0.25 0.0614 19-Jan-07 21.648 -0.02 -0.48 0.2315 22-Jan-07 21.733 0.39 -0.07 0.0016 23-Jan-07 21.628 -0.48 -0.94 0.8917 24-Jan-07 21.689 0.28 -0.18 0.0318 25-Jan-07 21.932 1.12 0.66 0.4419 29-Jan-07 21.785 -0.67 -1.13 1.28



The above graph represents the returns of FIDELITY income fund it shows that there is

continuous rise and fall in net asset value. If we see the table the monthly mean is 0.46 with price

variation of 2.02 and risk factor being 1.42 thus it can be said that risk is very high when

compared to returns.

RETURNS, VARIANCE AND STANDARD DEVIATION OF FIDELITY INCOMEFUNDS FOR THE MONTH OF FEB-2008

GRAPHICAL REPRESENTATION OF RETURNS OF FIDELITY AMRO MUTUAL FUND FOR THE

MONTH OF FEB-2008

-4.00

-3.00

-2.00

-1.00

0.00

1.00

2.00

3.00

1 3 5 7 9 11 13 15 17 19Series1

S NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD1 1-Feb-07 21.804 0.09 0.47 0.222 2-Feb-07 22.041 1.09 1.47 2.163 5-Feb-07 22.148 0.49 0.87 0.764 6-Feb-07 22.225 0.35 0.73 0.535 7-Feb-07 22.47 1.10 1.49 2.216 8-Feb-07 22.47 0.00 0.38 0.157 9-Feb-07 22.239 -1.03 -0.64 0.428 12-Feb-07 21.587 -2.93 -2.55 6.499 13-Feb-07 21.551 -0.17 0.22 0.05

10 14-Feb-07 21.461 -0.42 -0.03 0.0011 15-Feb-07 22.013 2.57 2.96 8.7412 19-Feb-07 22.04 0.12 0.51 0.2613 20-Feb-07 21.814 -1.03 -0.64 0.4114 21-Feb-07 21.83 0.07 0.46 0.2115 22-Feb-07 21.552 -1.27 -0.89 0.7916 23-Feb-07 21.074 -2.22 -1.83 3.3617 26-Feb-07 21.079 0.02 0.41 0.1718 27-Feb-07 20.925 -0.73 -0.35 0.1219 28-Feb-07 20.214 -3.40 -3.01 9.09




continuous rise and fall in net asset value. If we see the table the monthly mean is -0.38 with

price variation of 1.90 and risk factor being 1.38 thus it can be said that risk is very high when



MONTH OF MAR-2008

-5.00

-4.00-3.00

-2.00

-1.000.00

1.00

2.003.00

4.00

1 3 5 7 9 11 13 15 17 19Series1

RETURNS, VARIANCE AND STANDARD DEVIATION OF FIDELITY INCOMEFUNDS FOR THE MONTH OF MAR-2008

S NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD1 1-Mar-07 20.416 1.00 0.99 0.972 2-Mar-07 20.108 -1.51 -1.52 2.313 5-Mar-07 19.31 -3.97 -3.98 15.854 6-Mar-07 19.607 1.54 1.53 2.335 7-Mar-07 19.404 -1.04 -1.05 1.106 8-Mar-07 20.028 3.22 3.20 10.267 9-Mar-07 19.836 -0.96 -0.97 0.948 12-Mar-07 19.99 0.78 0.76 0.589 13-Mar-07 20.224 1.17 1.16 1.34








GRAPHICAL REPRESENTATOIN OF RETURNS OF FIDELITY AMRO MUTUAL FUND FOR THE

MONTH OF APR-2008

-3.00

-2.00

-1.00

0.00

1.00

2.00

3.00

1 3 5 7 9 11 13 15 17 19

Series1

RETURNS, VARIANCE AND STANDARD DEVIATION OF FIDELITY INCOMEFUNDS FOR THE MONTH OF APR-2008

S NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD1 2-Apr-07 19.743 -2.31 -2.70 7.312 3-Apr-07 19.94 1.00 0.60 0.363 4-Apr-07 20.181 1.21 0.81 0.664 5-Apr-07 20.346 0.82 0.42 0.185 9-Apr-07 20.728 1.88 1.48 2.196 10-Apr-07 20.838 0.53 0.13 0.027 11-Apr-07 20.862 0.12 -0.28 0.088 12-Apr-07 20.774 -0.42 -0.82 0.679 13-Apr-07 21.108 1.61 1.21 1.46

10 16-Apr-07 21.472 1.72 1.33 1.7611 17-Apr-07 21.318 -0.72 -1.12 1.2412 18-Apr-07 21.409 0.43 0.03 0.0013 19-Apr-07 21.409 0.00 -0.40 0.1614 20-Apr-07 21.688 1.30 0.91 0.8215 23-Apr-07 21.618 -0.32 -0.72 0.5216 24-Apr-07 21.904 1.32 0.92 0.8617 25-Apr-07 22.067 0.74 0.35 0.1218 26-Apr-07 22.137 0.32 -0.08 0.0119 27-Apr-07 21.769 -1.66 -2.06 4.25








MONTH OF MAY-2008

-1.00

-0.50

0.00

0.50

1.00

1.50

2.00

1 3 5 7 9 11 13 15 17 19

Series1

RETURNS, VARIANCE AND STANDARD DEVIATION OF FIDELITY INCOMEFUNDS FOR THE MONTH OF MAY-2008

S NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD1 3-May-07 22.133 1.67 1.26 1.592 4-May-07 22.008 -0.56 -0.97 0.953 7-May-07 21.911 -0.44 -0.85 0.724 8-May-07 21.751 -0.73 -1.14 1.305 9-May-07 21.768 0.08 -0.33 0.116 10-May-07 21.798 0.14 -0.27 0.077 11-May-07 21.864 0.30 -0.11 0.018 14-May-07 22.263 1.82 1.42 2.009 15-May-07 22.349 0.39 -0.02 0.00

10 16-May-07 22.708 1.61 1.20 1.4311 17-May-07 22.938 1.01 0.60 0.3612 18-May-07 22.93 -0.03 -0.44 0.2013 21-May-07 23.08 0.65 0.24 0.0614 22-May-07 23.173 0.40 -0.01 0.0015 23-May-07 23.042 -0.57 -0.97 0.9516 24-May-07 22.873 -0.73 -1.14 1.3117 25-May-07 23.034 0.70 0.29 0.0918 28-May-07 23.178 0.63 0.22 0.0519 29-May-07 23.511 1.44 1.03 1.06








MONTH OF JUN-2008

-2.50

-2.00

-1.50

-1.00

-0.50

0.00

0.50

1.00

1.50

1 3 5 7 9 11 13 15 17 19 Series1

RETURNS, VARIANCE AND STANDARD DEVIATION OF FIDELITY INCOMEFUNDS FOR THE MONTH OF JUN-2008

S NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD1 1-Jun-07 23.637 0.54 0.48 0.232 4-Jun-07 23.473 -0.69 -0.75 0.563 5-Jun-07 23.629 0.66 0.61 0.374 6-Jun-07 23.177 -1.91 -1.97 3.885 7-Jun-07 23.048 -0.56 -0.61 0.386 8-Jun-07 22.929 -0.52 -0.57 0.337 11-Jun-07 22.906 -0.10 -0.16 0.028 12-Jun-07 22.799 -0.47 -0.52 0.279 13-Jun-07 22.644 -0.68 -0.74 0.54

10 14-Jun-07 22.939 1.30 1.25 1.5511 15-Jun-07 23.008 0.30 0.24 0.0612 18-Jun-07 22.98 -0.12 -0.18 0.0313 19-Jun-07 23.277 1.29 1.24 1.5314 20-Jun-07 23.535 1.11 1.05 1.1115 21-Jun-07 23.759 0.95 0.90 0.8016 22-Jun-07 23.692 -0.28 -0.34 0.1117 25-Jun-07 23.687 -0.02 -0.08 0.0118 26-Jun-07 23.805 0.50 0.44 0.1919 27-Jun-07 23.751 -0.23 -0.28 0.08







RETURNS, VARIANCE AND STANDARD DEVIATION OF FIDELITY INCOME


MONTH OF JUL-2008

-1.00

-0.50

0.00

0.50

1.00

1.50

2.00

1 3 5 7 9 11 13 15 17 19

Series1

FUNDS FOR THE MONTH OF JUL-2008

S NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD1 2-Jul-07 24.123 1.57 1.21 1.462 3-Jul-07 24.389 1.10 0.74 0.553 4-Jul-07 24.421 0.13 -0.23 0.054 5-Jul-07 24.336 -0.35 -0.71 0.505 6-Jul-07 24.498 0.67 0.31 0.096 9-Jul-07 24.706 0.85 0.49 0.247 10-Jul-07 24.594 -0.45 -0.81 0.668 11-Jul-07 24.527 -0.27 -0.63 0.409 12-Jul-07 24.792 1.08 0.72 0.52

10 13-Jul-07 24.961 0.68 0.32 0.1011 16-Jul-07 25.01 0.20 -0.16 0.0312 17-Jul-07 24.962 -0.19 -0.55 0.3013 18-Jul-07 25.008 0.18 -0.18 0.0314 19-Jul-07 25.362 1.42 1.06 1.1115 20-Jul-07 25.345 -0.07 -0.43 0.1816 23-Jul-07 25.486 0.56 0.20 0.0417 24-Jul-07 25.56 0.29 -0.07 0.0018 25-Jul-07 25.368 -0.75 -1.11 1.2319 26-Jul-07 25.419 0.20 -0.16 0.03








MONTH OF AUG-2008

-5.00

-4.00

-3.00

-2.00

-1.00

0.00

1.00

2.00

3.00

1 3 5 7 9 11 13 15 17 19 Series1

RETURNS, VARIANCE AND STANDARD DEVIATION OF FIDELITY INCOMEFUNDS FOR THE MONTH OF AUG-2008

S NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD1 1-Aug-07 24.277 -4.49 -4.22 17.792 2-Aug-07 24.463 0.77 1.04 1.083 3-Aug-07 24.698 0.96 1.24 1.534 6-Aug-07 24.404 -1.19 -0.91 0.845 7-Aug-07 24.524 0.49 0.77 0.596 8-Aug-07 24.977 1.85 2.12 4.517 9-Aug-07 24.657 -1.28 -1.01 1.018 10-Aug-07 24.341 -1.28 -1.01 1.019 13-Aug-07 24.499 0.65 0.92 0.85





continuous rise and fall in net asset value. If we see the table the monthly mean is -0.28 with

price variation of 3.37 and risk factor being 1.84 thus it can be said that risk is very high when



MONTH OF SEP-2008

-1.00

-0.50

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

1 3 5 7 9 11 13 15 17 19

Series1

RETURNS, VARIANCE AND STANDARD DEVIATION OF FIDELITY INCOMEFUNDS FOR THE MONTH OF SEP-2008

S NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD1 3-Sep-07 24.838 3.31 2.75 7.572 4-Sep-07 24.89 0.21 -0.35 0.123 5-Sep-07 24.877 -0.05 -0.61 0.374 6-Sep-07 25.106 0.92 0.37 0.135 7-Sep-07 25.017 -0.35 -0.91 0.836 10-Sep-07 25.044 0.11 -0.45 0.207 11-Sep-07 24.929 -0.46 -1.01 1.038 12-Sep-07 24.872 -0.23 -0.78 0.619 13-Sep-07 25.056 0.74 0.18 0.03

10 14-Sep-07 24.934 -0.49 -1.04 1.0911 17-Sep-07 24.913 -0.08 -0.64 0.4112 18-Sep-07 25.18 1.07 0.52 0.2713 19-Sep-07 25.774 2.36 1.80 3.2514 20-Sep-07 25.86 0.33 -0.22 0.0515 21-Sep-07 26.15 1.12 0.57 0.3216 24-Sep-07 26.446 1.13 0.58 0.3317 25-Sep-07 26.407 -0.15 -0.70 0.4918 26-Sep-07 26.497 0.34 -0.21 0.0519 27-Sep-07 26.689 0.72 0.17 0.03







RETURNS, VARIANCE AND STANDARD DEVIATION OF FIDELITY INCOME


MONTH OF OCT-2008

-4.00-3.00-2.00-1.000.001.002.003.004.005.006.00

1 3 5 7 9 11 13 15 17 19

Series1

FUNDS FOR THE MONTH OF OCT-2008

S NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD1 1-Oct-07 27.163 1.78 1.28 1.642 3-Oct-07 27.556 1.45 0.95 0.913 4-Oct-07 27.599 0.16 -0.34 0.114 5-Oct-07 27.53 -0.25 -0.74 0.555 8-Oct-07 27.017 -1.86 -2.36 5.566 9-Oct-07 27.814 2.95 2.46 6.037 10-Oct-07 28.251 1.57 1.08 1.168 11-Oct-07 28.557 1.08 0.59 0.359 12-Oct-07 28.021 -1.88 -2.37 5.62

10 15-Oct-07 28.844 2.94 2.44 5.9711 16-Oct-07 28.867 0.08 -0.41 0.1712 17-Oct-07 28.309 -1.93 -2.43 5.8913 18-Oct-07 27.495 -2.88 -3.37 11.3614 19-Oct-07 26.773 -2.63 -3.12 9.7415 22-Oct-07 26.756 -0.06 -0.56 0.3116 23-Oct-07 28.124 5.11 4.62 21.3317 24-Oct-07 28.271 0.52 0.03 0.0018 25-Oct-07 28.505 0.83 0.33 0.1119 26-Oct-07 29.196 2.42 1.93 3.72








MONTH OF NOV-2008

-4.00

-3.00

-2.00

-1.00

0.00

1.00

2.00

3.00

4.00

1 3 5 7 9 11 13 15 17 19

Series1

RETURNS, VARIANCE AND STANDARD DEVIATION OF FIDELITY INCOMEFUNDS FOR THE MONTH OF NOV-2008

S NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD1 1-Nov-07 29.648 1.55 1.49 2.212 2-Nov-07 29.966 1.07 1.01 1.023 5-Nov-07 29.902 -0.21 -0.27 0.084 6-Nov-07 29.705 -0.66 -0.72 0.525 7-Nov-07 29.592 -0.38 -0.44 0.196 8-Nov-07 29.204 -1.31 -1.37 1.887 12-Nov-07 28.824 -1.30 -1.36 1.858 13-Nov-07 29.273 1.56 1.50 2.249 14-Nov-07 30.223 3.25 3.18 10.14

10 15-Nov-07 30.137 -0.28 -0.35 0.1211 16-Nov-07 30.204 0.22 0.16 0.0312 19-Nov-07 30.438 0.77 0.71 0.5113 20-Nov-07 30.023 -1.36 -1.42 2.0314 21-Nov-07 28.942 -3.60 -3.66 13.4015 22-Nov-07 28.874 -0.23 -0.30 0.0916 23-Nov-07 29.084 0.73 0.67 0.4417 26-Nov-07 29.629 1.87 1.81 3.2918 27-Nov-07 29.582 -0.16 -0.22 0.0519 28-Nov-07 29.475 -0.36 -0.42 0.18







RETURNS, VARIANCE AND STANDARD DEVIATION OF FIDELITY INCOMEFUNDS FOR THE MONTH OF DEC-2008


MONTH OF DEC-2008

-5.00

-4.00-3.00

-2.00

-1.000.00

1.00

2.003.00

4.00

1 3 5 7 9 11 13 15 17 19Series1






CORRELATION OF RETURNS BETWEEN ABN AMRO & BIRLA FROM JAN – 08 TO JUNE – 08

S.NO ABN(x) BIRLA(y) X=(x-MEAN) Y=(y-MEAN) X*Y x^2 Y^2

S NO Date NAV RETURN (X-XBAR) (X-XBAR)2 SD1 3-Dec-07 30.464 3.36 2.85 8.152 4-Dec-07 30.564 0.33 -0.17 0.033 5-Dec-07 31.013 1.47 0.97 0.944 6-Dec-07 30.987 -0.08 -0.58 0.345 7-Dec-07 31.116 0.42 -0.08 0.016 10-Dec-07 31.054 -0.20 -0.70 0.497 11-Dec-07 31.479 1.37 0.87 0.758 12-Dec-07 31.713 0.74 0.24 0.069 13-Dec-07 31.575 -0.44 -0.94 0.88

10 14-Dec-07 31.557 -0.06 -0.56 0.3111 17-Dec-07 30.4 -3.67 -4.17 17.3612 18-Dec-07 30.292 -0.36 -0.86 0.7313 19-Dec-07 30.285 -0.02 -0.52 0.2714 20-Dec-07 30.342 0.19 -0.31 0.1015 24-Dec-07 31.16 2.70 2.20 4.8216 26-Dec-07 31.686 1.69 1.19 1.4117 27-Dec-07 31.74 0.17 -0.33 0.1118 28-Dec-07 31.999 0.82 0.32 0.1019 31-Dec-07 32.348 1.09 0.59 0.35


CORRELATION OF RETURNS BETWEEN ABN AMRO &

BIRLA FROM JAN-08 TO JUNE-08

-0.60

-0.40

-0.20

0.00

0.20

0.40

0.60

1 2 3 4 5 6

ABN(x)

BIRLA(y)

1 JAN 0.09 0.15 -0.02 0.05 0.00 0.00 0.002 FEB -0.54 -0.48 -0.64 -0.58 0.37 0.41 0.343 MAR -0.02 0.00 -0.13 -0.11 0.01 0.02 0.014 APR 0.47 0.31 0.37 0.21 0.08 0.14 0.055 MAY 0.48 0.55 0.38 0.44 0.17 0.14 0.206 JUN 0.13 0.08 0.03 -0.02 0.00 0.00 0.00

MEANx 0.10 ∑X ∑Y ∑XY ∑x^2 ∑Y^2MEANy 0.10 0.00 0.00 0.63 0.71 0.59

CORRELATION SQRT(∑X^2∑Y^2)

∑XY 0.63

∑X^2∑Y^2 0.42 0.65

CORRELATION( r ) 0.97

GRAPHICAL REPRESENTATION OF ABN AMRO & BIRLA

The above graph represents the correlation between ABN AMRO & BIRLA; it reveals that there

exists a strong positive correlation between both the companies in the first half of the year. Here

the correlation lies closer to 1. which indicates a good correlation, thus we can say that both the

companies are going according to market conditions.

CORRELATOIN OF RETURNS BETWEEN ABN AMRO

AND BIRLA FOR THE PERIOD OF JUL-08 TO DEC-08

-1.00

0.00

1.002.00

3.00

4.00

1 2 3 4 5 6

Series1

Series2

CORRELATION OF RETURNS BETWEEN ABN AMRO & BIRLA FROM JUL– 08 TO

DEC– 08

S NO ABN(x) BIRLA(y) X=(x-MEAN) Y=(y-MEAN) X*Y X^2 Y^2

1 JUL 1.35 0.35 -0.20 0.04 -0.01 0.04 0.002 AUG 0.49 -0.25 -1.06 -0.55 0.59 1.13 0.313 SEP 3.11 0.50 1.56 0.20 0.31 2.44 0.044 OCT 1.33 0.49 -0.22 0.19 -0.04 0.05 0.045 NOV 1.47 -0.04 -0.08 -0.34 0.03 0.01 0.126 DEC 0.00 0.78 -1.55 0.47 -0.73 2.41 0.22

MEAN x 1.55 ∑X ∑Y ∑XY ∑X^2 ∑Y^2MEAN y 0.31 0.00 0.00 0.87 6.07 0.72


∑XY 0.87

∑X^2∑Y^2 4.39 2.094897022


GRAPHICAL REPRESENTATION OF ABN AMRO & BIRLA

The above graph represents the correlation between ABN AMRO & BIRLA; it reveals that there

exists a slight positive correlation between both the companies in the second half of the year.

Here the correlation lies closer to 0. Which indicates a good correlation, thus we can say that

both the companies are going according to market conditions.

CORRELATOIN OF RETURNS BETWEEN ABN AMRO

AND FIDELITY FOR THE PERIOD OF JAN-07 TO JUN-08

-1.00

-0.50

0.00

0.50

1.00

1 2 3 4 5 6

Series1

Series2

CORRELATION OF RETURNS BETWEEN ABN AMRO & FIDELITY FROM JAN – 08 TO JUNE – 08

S NO ABN(x)FIDELITY(y) X=(x-MEAN) Y=(y-MEAN)

X*Y X^2 Y^2

1 JAN 0.09 0.46 -0.02 0.30 0.00 0.00 0.092 FEB -0.54 -0.38 -0.64 -0.54 0.35 0.41 0.293 MAR -0.02 0.01 -0.13 -0.15 0.02 0.02 0.024 APR 0.47 0.40 0.37 0.24 0.09 0.14 0.065 MAY 0.48 0.41 0.38 0.25 0.09 0.14 0.066 JUN 0.13 0.06 0.03 -0.10 0.00 0.00 0.01

MEAN x 0.10 ∑X ∑Y∑XY ∑X^2 ∑Y^2

MEAN y 0.16 0.00 0.00 0.54 0.71 0.54


∑XY 0.54

∑X^2∑Y^2 0.38 0.616984452


GRAPHICAL REPRESENTATION OF ABN AMRO & FIDELITY

The above graph represents the correlation between ABN AMRO & FIDELITY; it reveals that

there exists a strong positive correlation between both the companies in the first half of the year.

Here the correlation lies closer to 1. which indicates a good correlation, thus we can say that both

the companies are going according to market conditions.

CORRELTION OF RETURNS BETWEEN ABN AMRO AND FIDILTY FOR THE PERIOD OF JUL-08 TO DEC-08

-1.00

-0.50

0.00

0.50

1.00

1 2 3 4 5 6

Series1Series2

CORRELATION OF RETURNS BETWEEN ABN AMRO & FIDELITY FROM JUL– 08 TO DEC– 08

S NO ABN(x)FIDELITY(y) X=(x-MEAN) Y=(y-MEAN)

X*Y X^2 Y^2

1 JUL 0.48 0.36 0.10 0.08 0.01 0.01 0.012 AUG -0.49 -0.28 -0.88 -0.56 0.49 0.77 0.313 SEP 0.79 0.56 0.40 0.27 0.11 0.16 0.074 OCT 0.70 0.49 0.32 0.21 0.07 0.10 0.045 NOV 0.12 0.06 -0.26 -0.22 0.06 0.07 0.056 DEC 0.70 0.50 0.32 0.22 0.07 0.10 0.05



∑XY 0.80

∑X^2∑Y^2 0.65 0.804669252


GRAPHICAL REPRESENTATION OF ABN AMRO & FIDELITY

The above graph represents the correlation between ABN AMRO & FIDELITY; it reveals that

there exists a strong positive correlation between both the companies in the second half of the

year. Here the correlation almost 1. which indicates a good correlation, thus we can say that both


CORRELTION OF RETURNS BETWEEN ABN AMRO AND HDFC FOR THE PERIOD OF JAN-08 TO JUN-08

-0.60

-0.40

-0.20

0.00

0.20

0.40

0.60

1 2 3 4 5 6

Series1

Series2

CORRELATION OF RETURNS BETWEEN ABN AMRO & HDFC FROM JAN – 08 TO JUNE – 08

S NO ABN(x)HDFC(y) X=(x-MEAN) Y=(y-MEAN)

X*Y X^2 Y^2

1 JAN 0.09 0.44 -0.02 0.30 0.00 0.00 0.092 FEB -0.54 -0.38 -0.64 -0.52 0.33 0.41 0.273 MAR -0.02 -0.02 -0.13 -0.17 0.02 0.02 0.034 APR 0.47 0.37 0.37 0.22 0.08 0.14 0.055 MAY 0.48 0.34 0.38 0.20 0.07 0.14 0.046 JUN 0.13 0.11 0.03 -0.03 0.00 0.00 0.00

MEAN x 0.10 ∑X ∑Y∑XY ∑X^2 ∑Y^2

MEAN y 0.14 0.00 0.00 0.51 0.71 0.48


∑XY 0.51

∑X^2∑Y^2 0.34 0.581513842


GRAPHICAL REPRESENTATION OF ABN AMRO & HDFC

The above graph represents the correlation between ABN AMRO & HDFC; it reveals that there


the correlation lies closer to 1. which indicates a good correlation, thus we can say that both the


CORRELTION OF RETURNS BETWEEN ABN AMRO AND HDFC FOR THE PERIOD OF JUL-08 TO DEC-08

-1.00

-0.50

0.00

0.50

1.00

1 2 3 4 5 6

Series1Series2

CORRELATION OF RETURNS BETWEEN ABN AMRO & HDFC FROM JUL– 08 TO DEC– 08

S NO ABN(x)HDFC(y) X=(x-MEAN) Y=(y-MEAN)

X*Y X^2 Y^2

1 JUL 0.48 0.31 0.10 0.02 0.00 0.01 0.002 AUG -0.49 -0.27 -0.88 -0.56 0.49 0.77 0.313 SEP 0.79 0.52 0.40 0.24 0.09 0.16 0.064 OCT 0.70 0.65 0.32 0.36 0.12 0.10 0.135 NOV 0.12 -0.03 -0.26 -0.32 0.08 0.07 0.106 DEC 0.70 0.54 0.32 0.25 0.08 0.10 0.06



∑XY 0.87

∑X^2∑Y^2 0.81 0.898292407


GRAPHICAL REPRESENTATION OF ABN AMRO & HDFC

The above graph represents the correlation between ABN AMRO & HDFC; it reveals that there

exists a strong positive correlation between both the companies in the second half of the year.



CORRELTION OF RETURNS BETWEEN HDFC AMRO AND

FIDELITY FOR THE PERIOD OF JAN -08 TO JUN -08

-0.50

0.00

0.50

1.00

1 2 3 4 5 6

Series1

Series2

CORRELATION OF RETURNS BETWEEN HDFC & FIDELITY FROM JAN – 08 TO JUNE – 08

S NO HDFC(x)FIDELITY(y) X=(x-MEAN)

Y=(y-MEAN) X*Y X^2 Y^2

1 JAN 0.44 0.46 0.30 0.30 0.09 0.09 0.092 FEB -0.38 -0.38 -0.52 -0.54 0.28 0.27 0.293 MAR -0.02 0.01 -0.17 -0.15 0.02 0.03 0.024 APR 0.37 0.40 0.22 0.24 0.05 0.05 0.065 MAY 0.34 0.41 0.20 0.25 0.05 0.04 0.066 JUN 0.11 0.06 -0.03 -0.10 0.00 0.00 0.01

MEAN x 0.14 ∑X ∑Y∑XY ∑X^2 ∑Y^2

MEAN y 0.16 0.00 0.00 0.50 0.48 0.54


∑XY 0.50

∑X^2∑Y^2 0.26 0.506234475


GRAPHICAL REPRESENTATION OF HDFC & FIDELITY

The above graph represents the correlation between HDFC & FIDELITY; it reveals that there


the correlation almost 1. which indicates a good correlation, thus we can say that both the


CORRELTION OF RETURNS BETWEEN HDFC AMRO AND FIDELITY FOR THE PERIOD OF JUL -08 TO DEC -08

-0.50

0.00

0.50

1.00

1 2 3 4 5 6

Series1

Series2

CORRELATION OF RETURNS BETWEEN HDFC & FIDELITY FROM JUL– 08 TO DEC– 08

S NO HDFC(x)FIDELITY(y) X=(x-MEAN)

Y=(y-MEAN) X*Y X^2 Y^2

1 JUL 0.31 0.36 0.02 0.08 0.00 0.00 0.012 AUG -0.27 -0.28 -0.56 -0.56 0.31 0.31 0.313 SEP 0.52 0.56 0.24 0.27 0.06 0.06 0.074 OCT 0.65 0.49 0.36 0.21 0.08 0.13 0.045 NOV -0.03 0.06 -0.32 -0.22 0.07 0.10 0.056 DEC 0.54 0.50 0.25 0.22 0.06 0.06 0.05

MEAN x 0.29 ∑X ∑Y∑XY ∑X^2 ∑Y^2

MEAN y 0.28 0.00 0.00 0.58 0.66 0.53


∑XY 0.58

∑X^2∑Y^2 0.35 0.595608788


GRAPHICAL REPRESENTATION OF HDFC & FIDELITY

The above graph represents the correlation between HDFC & FIDELITY; it reveals that there

exists a strong positive correlation between both the companies in the second half of the year.



CORRELTION OF RETURNS BETWEEN HDFC AMRO AND

BIRLA FOR THE PERIOD OF JAN -08 TO JUN -08

-1.00

-0.50

0.00

0.50

1.00

1 2 3 4 5 6

Series1

Series2

CORRELATION OF RETURNS BETWEEN HDFC & BIRLA FROM JAN – 08 TO JUNE – 08

S NO HDFC(x)BIRLA(y) X=(x-MEAN) Y=(y-MEAN) X*Y X^2 Y^2

1 JAN 0.44 0.15 0.30 0.05 0.02 0.09 0.002 FEB -0.38 -0.48 -0.52 -0.58 0.30 0.27 0.343 MAR -0.02 0.00 -0.17 -0.11 0.02 0.03 0.014 APR 0.37 0.31 0.22 0.21 0.05 0.05 0.055 MAY 0.34 0.55 0.20 0.44 0.09 0.04 0.206 JUN 0.11 0.08 -0.03 -0.02 0.00 0.00 0.00

MEAN x 0.14 ∑X ∑Y∑XY ∑X^2 ∑Y^2

MEAN y 0.10 0.00 0.00 0.47 0.48 0.59


∑XY 0.47

∑X^2∑Y^2 0.28 0.532525268


GRAPHICAL REPRESENTATION OF HDFC & BIRLA

The above graph represents the correlation between HDFC & BIRLA; it reveals that there exists

a strong positive correlation between both the companies in the first half of the year. Here the

correlation lies closer to 1. which indicates a good correlation, thus we can say that both the


CORRELTION OF RETURNS BETWEEN HDFC AMRO

BIRLA FOR THE PERIOD OF JUL -08 TO DEC -08

-0.50

0.00

0.50

1.00

1 2 3 4 5 6

Series1Series2

CORRELATION OF RETURNS BETWEEN HDFC & BIRLA FROM JUL– 08 TO DEC– 08

S NO HDFC(x)BIRLA(y) X=(x-MEAN) Y=(y-MEAN) X*Y X^2 Y^2

1 JUL 0.31 0.35 0.02 0.04 0.00 0.00 0.002 AUG -0.27 -0.25 -0.56 -0.55 0.31 0.31 0.313 SEP 0.52 0.50 0.24 0.20 0.05 0.06 0.044 OCT 0.65 0.49 0.36 0.19 0.07 0.13 0.045 NOV -0.03 -0.04 -0.32 -0.34 0.11 0.10 0.126 DEC 0.54 0.78 0.25 0.47 0.12 0.06 0.22

MEAN x 0.29 ∑X ∑Y∑XY ∑X^2 ∑Y^2

MEAN y 0.31 0.00 0.00 0.65 0.66 0.72


∑XY 0.65

∑X^2∑Y^2 0.48 0.693439965


GRAPHICAL REPRESENTATION OF HDFC & BIRLA

The above graph represents the correlation between HDFC & BIRLA; it reveals that there exists

a strong positive correlation between both the companies in the second half of the year. Here the

correlation lies closer to 1. which indicates a good correlation, thus we can say that both the


SUGGESTIONS

Select your investments on economic grounds.

Public knowledge is no advantage.

Buy stock with a disparity and discrepancy between the situation of the firm - and the

expectations and appraisal of the public (Contrarian approach vs. Consensus approach).

Buy stocks in companies with potential for surprises.

Take advantage of volatility before reaching a new equilibrium.

Listen to rumors and tips, check for yourself.

Don’t put your trust in only one investment. It is like “putting all the eggs in one basket

“. This will help lesson the risk in the long term.

The investor must select the right advisory body which is has sound knowledge about the

product which they are offering.

Professionalized advisory is the most important feature to the investors. Professionalized

research, analysis which will be helpful for reducing any kind of risk to overcome.

Conclusion

If the companies have strong positive correlation it indicates good correlation. Then the

companies are going according to market conditions. If the market price increases the companies

share prices are increases or vice-versa.

If the companies have negative correlation then the companies are going opposite to market

conditions. If the market price increases the companies share prices are decreases or vice-versa.

But here all the combinations have positive correlation it indicates good correlation, so we can

conclude all the companies are going according to the market conditions. If the market price

increases the companies share prices are increases or vice-versa.

Here correlation coefficient declines risk should decline. But here there is no declines in

correlation so no reduce in risk.

Investors invest in any of these combinations they get profits. Why because here all the

combinations risk is very high.

If assets are less than perfectly positively correlated, diversification can reduce the risk.

BIBLIOGRAPHY

Books

Security Analysis & Portfolio Management - Fishers & Jordon

Financial Management – M.Y. Khan

Financial Management – Prasanna Chandra

News Papers

Business Line

Times of India

India Today

Magazines

Business world

Websites

www.amfiindia.com

www.sebi.com

www.google.com

www.ingvysyabank.com

http://www.ingvysyabank.com/

http://www.google.com/

http://www.sebi.com/

http://www.amfiindia.com/

39882974 Portfolio Management

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