Mutual Funds by Tripti Sao, SIBM- B

8/14/2019 Mutual Funds by Tripti Sao, SIBM- B

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MERCHANT

BANKING &

FINANCIAL

SERVICES

Assignment # 5

Mutual Funds

Submitted by:

TRIPTI SAO (11184)

July 20,2009



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Mutual Funds:

A mutual fund is a company that pools investors' money to make multiple types of investments,

known as the portfolio. Stocks, bonds, and money market funds are all examples of the types of

investments that may make up a mutual fund.

In present scenario when bank rates have fallen down and are generally below the inflation

rate, keeping large amounts of money in does not make financial sense, as in real terms the

value of money decreases over a period of time.

One can invest the money in stock market, if one wants it to grow in both nominal and real

terms. But a common investor is not informed and competent enough to understand the

intricacies of stock market. This is where mutual funds come to the rescue.

Benefits of investing in Mutual Funds:

Mutual funds are highly cost efficient and very easy to invest in. By pooling money together in a

mutual fund, investors can purchase stocks or bonds with much lower trading costs than if they

tried to do it on their own. Also, one doesn't have to figure out which stocks or bonds to buy as

this is done by qualified fund managers; so the biggest advantage of mutual funds is

diversification.

Diversification means spreading out money across many different types of investments. When

one investment is down another might be up. Diversification of investment holdings reduces

the risk tremendously.

The structure of a Mutual Fund



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How a Mutual Fund Operates:

Source: ICICI AMC website.

Entities involved in Mutual Fund’s Operations:

1. Sponsor: A company, firm, bank, investment house, financial institution or even an

individual who sets up a mutual fund is called “sponsor”. Generally the sponsor

contributes 40% of the net worth of asset management company

According to SEBI regulations, a sponsor must have adequate experience, financial

worth, a good track record and have been in the financial services business for at least

five years. The sponsor initiates the fund's activities by appointing the trustees, the AMC

and custodians.

2. Trustee: Trustees are needed to safeguard the interests of the MF. The trustee monitors

the operations of the various schemes and safeguards investor interests. The trustee

must be experienced and ensure the fund’s operations are aboveboard, in compliance

with existing regulations, and benefit the unit-holders. The trustees can also review the

AMC’s operations and transactions, including contracts with various agencies such as



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custodians and registrars. Two-thirds of the trustees should not be associated with the

sponsors in any manner. An AMC, its officers or employees shall not be eligible to act as

trustees.

3.

AMC: The Company that manages a mutual fund is called an AMC. Actually it is anorganized form of a “money portfolio manager”. An AMC may have several mutual fund

schemes with similar or varied investment objectives. The AMC hires a professional

money manager, who buys and sells securities in line with the fund's stated objective.

4. Fund Manager: Fund managers are responsible for implementing a consistent

investment strategy that reflects the goals and objectives of the fund. Normally, fund

managers monitor market and economic trends and analyse securities in order to make

informed investment decisions.

5. Custodian: A trust company, bank or similar financial institution responsible for holding

and safeguarding the securities owned within a mutual fund. A mutual fund's custodian

may also act as the mutual fund's transfer agent, maintaining records of shareholder

transactions and balances.

6. Registrar & Transfer Agents: The organization, usually a bank or a trust company, that

maintains a registry of the unit holders and number of shares held for a mutual fund,

bond or stock, and makes sure that more shares are not issued than are authorized.

Registrars and transfer agents (R&T agents) handle all paperwork involving investorservicing. Their services include processing initial public offerings, dispatch of

certificates, account statements, annual reports and dividend warrants. Some MFs

handle this work in-house.

7. Distributors: A mutual fund distributor is an entity responsible for marketing and selling

the shares of a mutual fund company. These mutual fund distributors are also known as

underwriters for the fund. The distributor is responsible for the following:

Creating prospectus for the mutual fund

Develop extensive marketing campaigns (tv, internet, magazine)

Sell the shares directly to the public

Provide a wholesale market to reach a larger number of investors.



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Types of Mutual Funds Scheme in India

Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial position, risk

tolerance and return expectations etc. The table below gives an overview into the existing types

of schemes in the Industry.

• By Structure

o Open - Ended Schemes

Open–ended schemes usually do not have a fixed maturity period and are

available for subscription and redemption on an ongoing basis. The units can be

bought and sold any time during the life of the scheme at NAV related prices

o Close - Ended Schemes

Unlike open ended schemes, closed ended schemes cannot issue new units

except in case of bonus or right issues. The number of units in a closed ended

scheme does not fluctuate on a daily basis and the total corpus of the fund

remains the same. In closed ended schemes, new investors can buy units of the

scheme only from the secondary market.

o Interval Schemes

Interval Schemes are those that combine the features of open-ended and close-

ended schemes. The units may be traded on the stock exchange or may be open

for sale or redemption during pre-determined intervals at NAV related prices.

• By Investment Objective

o Growth Schemes

Growth Schemes are also known as equity schemes. The aim of these schemes is

to provide capital appreciation over medium to long term. These schemes

normally invest a major part of their fund in equities and are willing to bear

short-term decline in value for possible future appreciation.



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o Income Schemes

The aim of income funds is to provide regular and steady income to investors.

Such schemes generally invest in fixed income securities such as bonds,

corporate debentures, Government securities and money market instruments.

Such funds are less risky compared to equity schemes. These funds are not

affected because of fluctuations in equity markets. However, opportunities of

capital appreciation are also limited in such funds. The NAVs of such funds are

affected because of change in interest rates in the country. If the interest rates

fall, NAVs of such funds are likely to increase in the short run and vice versa.

However, long term investors may not bother about these fluctuations.

o Balanced Schemes

The aim of balanced funds is to provide both growth and regular income as such

schemes invest both in equities and fixed income securities in the proportion

indicated in their offer documents. These are appropriate for investors looking

for moderate growth. They generally invest 40-60 per cent in equity and debt

instruments. These funds are also affected because of fluctuations in share

prices in the stock markets. However, NAVs of such funds are likely to be less

volatile compared to pure equity funds.

o Money Market Schemes

These funds are also income funds and their aim is to provide easy liquidity,

preservation of capital and moderate income. These schemes invest exclusively

in safer short-term instruments such as treasury bills, certificates of deposit,

commercial paper and inter-bank call money, government securities, etc Returns

on these schemes fluctuate much less compared to other funds. These funds are

appropriate for corporate and individual investors as a means to park their

surplus funds for short periods.

• Other Schemes

o Tax Saving Schemes

These schemes offer tax rebates to the investors under specific provisions of the

Income Tax Act, 1961 as the Government offers tax incentives for investment in

specified avenues. Eg Equity Linked Savings Schemes (ELSS). Pension schemes

launched by the mutual funds also offer tax benefits. These schemes are growth



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oriented and invest pre-dominantly in equities. Their growth opportunities and

risks associated are like any equity-oriented scheme.

o Special Schemes

Index Schemes

Index funds replicate the portfolio of a particular index such as the BSE Sensitive

index, S&P NSE 50 index (Nifty), etc These schemes invest in the securities in the

same weightage comprising of an index. NAVs of such schemes would rise or fall

in accordance with the rise or fall in the index, though not exactly by the same

percentage due to some factors known as "tracking error" in technical terms.

Necessary disclosures in this regard are made in the offer document of the

mutual fund scheme.

There are also exchange traded index funds launched by the mutual funds which

are traded on the stock exchanges.

Sector Specific Schemes

These are the funds/schemes which invest in the securities of only those sectors

or industries as specified in the offer documents. Eg Pharmaceuticals, Software,

Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc The returns in

these funds are dependent on the performance of the respective

sectors/industries. While these funds may give higher returns, they are more

risky compared to diversified funds. Investors need to keep a watch on the

performance of those sectors/industries and must exit at an appropriate time.They may also seek advice of an expert.

Funds of Funds It is a kind of investment fund which normally uses a particular strategy to hold a

portfolio of several other investment funds instead of directly investing in

various kinds of bonds, shares and different kind of other securities. The Fund of

Funds is often termed in other words as multi-manager investment. One can find

a great variety in Fund of Funds and all of these types have one thing in common

and that is they are all investing in various types of collective investmentscheme.



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Load or no-load fund

A load fund is one that charges a percentage of NAV for entry or exit. That is, each time one

buys or sells units in the fund, a charge will be payable. This charge is used by the mutual fund

for marketing and distribution expenses. Suppose the NAV per unit is INR10. If the entry as well

as exit load charged is 1 per cent, then the investors who buy would be required to pay

INR10.10 and those who offer their units for repurchase to the mutual fund will get only

INR9.90 per unit. The investors should take the loads into consideration while making

investment as these affect their yields/returns. However, the investors should also consider the

performance track record and service standards of the mutual fund which are more important.

Efficient funds may give higher returns in spite of loads.

A no-load fund is one that does not charge for entry or exit. It means the investors can enter

the fund/scheme at NAV and no additional charges are payable on purchase or sale of units.

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Investment in Mutual Funds:

My investment preferences (Premises for analysis):

1. I can invest in a Mutual Fund which offers Systematic Investment Plan as well as the one

which requires lump sum payment for units.

2. I have access to the information that the Mutual Funds provide in their websites as well that

is available in newspapers and on financial websites.

3. I prefer to invest in a mutual fund which has fund managers with successful and sustainable

track record of running such funds.

4. My basic objective of investing in mutual fund is to put my money in safe and growth

oriented assets.

5. Currently I have no tax obligation as such, but in one year’s time I would start paying tax. At

that time I need to invest in a scheme which is eligible for IT deduction u/s 80. So, the scheme

that I choose today should be either eligible for IT deduction (ELSS) per se or should have a

great NAV, so that redemption of its units and shifting to another scheme at any point of time

could be easy.

I have chosen equity, debt and balanced schemes of three different mutual funds for study and

analysis for the purpose of investment.

The basis for selecting these mutual funds is the trust that these funds have created among the

investor community, by way of excellent performance and their reputation for providing a

valuable investment alternative.

The comparison between various schemes has been done on the basis of Assets Allocation in

portfolio; NAV (Present, Historic, Lowest and Highest); Dividend; Absolute Returns; Fund

Manager’s performance and comparison of annualized returns with peer funds.



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These Mutual Funds are:

SBI Mutual Fund

Schemes:

Equity Scheme: Magnum Multi cap Fund

Debt Scheme: Magnum Insta Cash Fund

Balanced Scheme: Magnum Balanced Fund

Reasons for selecting SBI Mutual Fund:

Successful Track Record Of Wealth Generation

SBI Mutual Fund is India’s largest bank sponsored mutual fund and has an enviable track record

in judicious investments and consistent wealth creation.

SBI Mutual Fund is a joint venture between the State Bank of India and Société Générale Asset

Management, one of the world’s leading fund management companies that manages

over US$ 500 Billion worldwide.

Leveraging On Expertise And Experience

In its twenty years of operational history, the fund has launched 38 schemes and successfully

redeemed fifteen of them. In the process it has rewarded its investors handsomely with

consistent returns.

A total of over 5.4 million investors have reposed their faith in the wealth generation expertise

of the Mutual Fund.

Schemes of the Mutual fund have consistently outperformed benchmark indices and have

emerged as the preferred investment for millions of investors and HNI’s.

Today, the fund manages over Rs. 34,441 crores of assets and has a diverse profile of investors

actively parking their investments across 38 active schemes.

The fund serves this vast family of investors by reaching out to them through network of over

130 points of acceptance, 28 investor service centers, 46 investor service desks and 56 district

organisers.



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SBI Mutual is the first bank-sponsored fund to launch an offshore fund – Resurgent India

Opportunities Fund.

SBI Funds Management Private Limited

Key Information

Mutual Fund SBI Mutual Fund

Setup Date Jun-29-1987

Incorporation Date Feb-07-1992

Sponsor State Bank of India

Trustee SBI Mutual Fund Trustee Company Private Limited

Chairman N.A

CEO / MD Mr. Achal Kumar Gupta

CIO Mr. Navneet Munot

Compliance Officer Ms. Vinaya Datar

Investor Service Officer Mr. C A Santosh

Assets Managed Rs. 34061.04 crore (Jun-30-2009)

Auditors M/s Chandabhoy & Jasoobhoy (SBIMFTCPL), M/s Deloitte Haskins & Sells Jt Auditor

SBI Funds Mgmt P Ltd, M/s Khandelwal Jain & Co CAs Jt Auditor SBI Funds Mgmt P Ltd

Custodians Citi Bank, HDFC Bank, Stock Holding Corporation of India

Registrars Computer Age Management Services Pvt. Ltd, Computronics Financial Services (I)

Ltd, Datamatics Financial Software Services Ltd.



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DBS Chola Mutual Fund

Schemes:

Equity Scheme: DBS Chola Hedged Equity Fund

Debt Scheme: DBS Chola Freedom Income- Short Term Fund

Balanced Scheme: DBS Chola Monthly Income Plan

Reason for selecting DBS Chola Mutual Fund:

DBS Cholamandalam Asset Management Ltd. was established in 1996. The company manages

funds in excess of Rs. 2249crores (as on Jun 30th, 2008) across 23 schemes with over 2,00,000

customer accounts. Known for prudent and disciplined investment philosophy, DCAM products

cover the entire range of equity, debt and cash asset classes. DCAM is present in over 20

locations in the country and also has a strong distribution network.

DBS Cholamandalam Asset Management Co. Ltd.

Key Information

Mutual Fund DBS Chola Mutual Fund

Setup Date Jan-03-1997

Incorporation Date Apr-30-1996

Sponsor Cholamandalam DBS Finance Ltd.

Trustee DBS Cholamandalam Trustee Ltd.

Chairman N.A

CEO / MD Mr. Sanjay Sinha

CIO N.A

Compliance Officer Mr. Anish Y Shah

Investor Service Officer Mr. B. John Vijayan




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Other Details

Auditors Price Waterhouse

Custodians HDFC Bank Limited

Registrars Computer Age Management Services (P) Ltd.

Tata Mutual Fund

Schemes:

Equity Scheme: Tata Equity P/E Fund

Debt Scheme: Tata Liquidity Management Fund

Balanced Scheme: Tata Smart Investment Plan- 1

Reasons for selecting Tata Mutual Fund:

Backed by one of the most trusted and valued brands in India, Tata Mutual Fund has earned the

trust of lakhs of investors with its consistent performance and world-class service.

Tata Mutual Fund manages around Rs. 21,222.00 crores (average AUM for the month) as on

June 30, 2009 worth of assets across its varied offerings. Tata Mutual Fund offers an investment

option for everyone, whether you are a businessman or salaried professional, a retired person

or housewife, an aggressive investor or a conservative capital builder.

The Tata Asset Management philosophy is centred on seeking consistent, long-term results.

Tata Asset Management aims at overall excellence, within the framework of transparent and

rigorous risk controls.



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Tata Asset Management Limited

Key Information

Mutual Fund Tata Mutual Fund

Setup Date Jun-30-1995

Incorporation Date Mar-15-1994

Sponsor Tata Sons Limited & Tata Investment Corp. Ltd.

Trustee Tata Trustee Company Pvt Limited

Chairman Mr. S. M. Datta

CEO / MD Mr. Ved Prakash Chaturvedi

CIO N.A

Compliance Officer N.A

Investor Service Officer N.A


Auditors AMC Auditors: BSR & Associates / Scheme Auditors:M/s S.B.Bilimoria & Company

Custodians Deutsche Bank, HDFC ; CitiBank N.A. ; Standard Chartered Bank

Registrars CAMS Ltd, Karvy Computershare P Ltd, MCS Ltd



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Comparative Analysis of the Equity Schemes of the three Mutual

Funds:

SBI Mutual Fund

Magnum Multi cap Fund

Investment Objective

To provide investors with opportunities for long-term growth in capital along with the liquidity

of an open-ended scheme through an active management of investments in a diversified

basket of equity stocks spanning the entire market capitalization spectrum, debt and money

market instruments.

Performance Parameters:

1. NAV

(a) Dividend Scheme

(i) PRESENT- 10.62 (as per 15/07/2009)

Not much above the face value Rs. 10

(ii) HISTORIC-

Historic NAV Graph 22-08-2005 to 15-07-2009

Source: Moneycontrol.com

Past trend shows that the fund has been able to outperform or at least match the Sensex.



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(iii) Highest and Lowest NAV from the date of issue till date (July 15, 2009)

High 20.80

Low 6.33 The lowest NAV has been around 60% of face value and the highest 200%. At an average,

it has been able to maintain the NAV at a justified level.

(b) Growth Scheme

(i) PRESENT- 13.98 (as per 15/07/2009)

Currently performing well and NAV 30% above face value.

(ii) HISTORIC-

Historic Graph 22-08-2005 to 15-07-2009


The fund has been able to grow at least as much as the index has done.


High 23.730

Low 8.330

NAV has plunged to 8.33/- but the highest is a good indicator of the possibilities that this

fund can perform well in future.



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2. Dividend History

(a) Dividend Scheme

Record Date Dividend (Rs/unit)

18-Jan-2008 2.5

29-Jan-2007 2.0 It has declared 20% and 25% dividend apart from appreciation in NAV.

(b) Growth Scheme

No Dividends Declared Yet

3. Absolute Returns (from the date of issue till date- July 15, 2009)

(a) Dividend Scheme- 6.2%

Absolute Returns (as on Jul 15, 09)

Period Returns (%) Rank #

1 mth 4 129

3 mths 33 128

6 mths 52.2 115

1 year 4.7 132

2 year -14.8 120

3 year 22.1 116

5 year - 0

# Moneycontrol Rank within 249 Equity DiversifiedSchemes

There has been a constant up and down situation in the absolute return % of the fund. Its

ranking among the peers is not very appreciable.

(b) Growth Scheme- 39.8%



1 mth 2.7 22

3 mths 26.8 116 mths 44 9

1 year 14.4 12

2 year 3 16

3 year 43.8 10

5 year 204.6 2

# Moneycontrol Rank within 38 Equity Diversified



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Schemes

The fund has been successful in maintaining a positive rate of absolute returns over a

period of 5 years. Rankings are also good enough.

Returns have been calculated after adjusting the NAVs for dividends, & bonus, if any.

Source: moneycontrol.com

4. Fund Manager’s Performance

** Moneycontrol (MC) ranks within fund class

Manager’s ranking for this scheme 137/158 cannot be called good. It can adversely affect

the decision of investing.

Comment on overall performance and asset portfolio (please refer excel sheet):

SBI Magnum Multi cap Fund (G) may look attractive for its high NAV and high absolute returns, but

dividend scheme is not that much promising. Performance the fund disappoints, especially when its

portfolio consists of all types of equities (large cap, midcap and small cap), there could have been better

NAVs and better dividends.

Scheme Name NAV Assets

3mth 6mth 1yr 2yr 3yr Assets MC

(Rs./unit) (Rs. cr.) Rank**

SBI Magnum FMCG Fund 16.39 21.8 34.1 18.8 16.2 20.4 6.95 2/3

SBI Magnum Global Fund (G) 37.02 51.2 75.1 1.7 -23.7 22.9 1,086.99 54 / 158

SBI Magnum NRI Fund - FAP (G) 23.598 27.8 44.9 5.9 -4.9 15.8 9.58 174 / 158

SBI Magnum Emerging Busi (G) 24.95 48.8 68.7 -- -27.8 16 148.77 60 / 158

SBI Magnum Pharma Fund (G) 26.7 37.1 45.8 -7.8 -29.5 -8.7 28.3 3/5

SBI Magnum Balanced Fund (G) 40.6 26.8 44 14.4 3 43.8 428.3 12/34

SBI Magnum Midcap Fund (G) 17.13 40.5 67.6 -9.8 -35.7 9.8 314.81 43 / 158

SBI Magnum Multicap Fund (G) 14.4 33 52.2 4.7 -14.8 22.1 627.45 137 / 158

SBI Capital Protection - Sr -I 10.571 3.3 9.6 11.9 -- -- 208.56 14 / 20

SBI Tax Advantage Sr-1 (G) 9.02 28.7 51.1 3.9 -- -- 576.37 8/27

Mutual Funds managed by Ritesh Sheth / Vivek Pandey

Absolute returns (in %) as on Jul 15, 2009



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DBS Chola Hedged Equity Fund


To generate long term capital appreciation by investing in equity, equity related and derivative

instruments. The fund seeks to minimize risk by use of hedging instruments such as index and

stock derivative instruments. The aim is to generate returns with a lower volatility.


1. NAV

(a) Dividend Scheme

(i) PRESENT- 7.71 (as per 15/07/2009)

Current NAV below face value, even when other similar schemes have a more than face

value NAV.

(ii) HISTORIC-

Historic NAV Graph from 23/03/2007 to 15/07/2009


The fund has, in most of the times been ahead of the sensex, but unfortunately it is more

related to the distant past. It can be said that it is more or less tracking the sensex.



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High 12.630

Low 4.490

NAV has risen by only 26% but has dipped by more than 50% in past.

(b) Growth Scheme

(i) PRESENT- 10.86 (as per 15/07/2009)

The present NAV is not much above the face value.

(ii) HISTORIC-

Historic NAV Graph from 23-03-2007 to 15-07-2009


Not a very steady NAV; almost same as the sensex.


High 17.310

Low 6.320

In case of this fund also, the dip in NAV has been much higher than the rise in the same.



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2. Dividend History

(a) Dividend Scheme


11-Dec-2007 1.10

2- Nov-2007 1.00

16-Oct-2007 0.80

25-Sep-2007 0.60

31-May-2007 0.50

Dividend ranges from 5% to 11% of the face value, but not very attractive as other similar

funds have also declared dividends when this fund did. An average practice.

(b) Growth Scheme

No Dividends Declared Yet.


(a) Dividend Scheme: -22.9%

Absolute Returns (as on Jul 15, 09)Period Returns (%) Rank #

1 mth 2.1 213

3 mths 29.3 174

6 mths 50.7 128

1 year 6.7 113

2 year -3.3 54

3 year - 0

5 year - 0


Schemes

Absolute returns have become positive as the fund is growing, but still the ranks

disappoint.



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(b) Growth Scheme: 8.6%



1 mth 2.1 213

3 mths 29.3 1746 mths 50.7 128

1 year 6.7 113

2 year -3.3 54

3 year - -

5 year - -


Schemes

Same performance as the dividend scheme. Returns and rankings both average.




** Moneycontrol (MC) ranks within fund class

Fund managers’ performance has been appreciable, but only in case of first two schemes of

the table. In third and forth schemes, their relative rankings have been even below the totalnumber of similar schemes.

Over all comment: this scheme is as good as any other similar scheme. No extra ordinary

returns, no spectacular rankings. I believe, investment in this scheme will give only a

moderate value to my money.





DBS Chola Opportunities (G) 33.29 42.6 70.4 8.6 2.5 84.8 61.3 20 / 158

DBS Chola MIP - Regular (G) 17.805 5.7 7.3 7.8 32.2 42.8 17.28 8/32

DBS Chola Global Advantage (G) 9.15 31.8 39.3 -14.2 -36.4 -22.5 6.28 193 / 158

DBS Chola Contra Fund (G) 8.39 38.2 52 -3.2 -31.8 -5.7 9.89 174 / 158

DBS Chola Hedged Equity (G) 11.11 29.3 50.7 6.7 -3.3 -- 20.17 107 / 158

DBS Chola Infrastructure (G) 6.76 42.9 -- -12.7 -- -- 36.39 63 / 158

Mutual Funds managed by Bajrang Kumar Bafna



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Tata Mutual Fund

Tata Equity P/E Fund


The investment objective of the fund will be to provide reasonable and regular income along

with possible capital appreciation to its unit holder.


1. NAV

(a) Dividend Scheme

(i) PRESENT- 29.17 (as per 15/07/2009)

Present NAV substantially higher than the face value.

(ii) HISTORIC-





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Though the present NAV is good, the fund has always performed worse than the sensex

since its launch.


High 45.876Low 10.000

NAV never went below its face value and the rise in it has been attractive.

(b) Growth Scheme

(i) PRESENT- 29.86 (as per 14/07/2009)

Not very attractive, as units of the dividend scheme also have almost same NAV, even after

paying dividends.

(ii) HISTORIC-



Not very appreciable performance.


High 47.956

Low 10.000

Something to appreciate here, the NAV did not fall below the face value.



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2. Dividend History

(a) Dividend Scheme


25-Mar-2008 0.5023-Sep-2004 0.50

(b) Growth Scheme



(a) Dividend Scheme: 191.7%



1 mth 5.8 44

3 mths 32.9 129

6 mths 52.8 108

1 year 7.9 105

2 year -1.8 46

3 year 70.6 14

5 year 201.3 38


Schemes

The absolute returns have shown a zig zag pattern over the past 5 years’ time. Rankings

have been good on annual basis, but recent rankings cannot be called very attractive.



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1 mth 5.8 44

3 mths 32.9 1296 mths 52.8 108

1 year 7.9 105

2 year -1.8 46

3 year 70.6 14

5 year 201.3 38


Schemes

Almost same performance as the dividend scheme, while the expectation was a much

better one.




Poor rankings of the fund managers in most of the schemes does not give any confidence

about the performance of this fund.

Over all comment: not attractive enough to invest.




Tata Balanced Fund (G) 60.019 30 45.8 15.2 4.5 53.1 218.37 15 / 34

Tata Young Citizens Fund 16.667 18.8 28 15.8 3.1 32.7 157.94 23 / 34

Tata Tax Saving Fund 41.126 36.4 52.4 8.3 -12.3 31.2 137.3 23 / 27

Tata Pure Equity Fund (G) 71.949 35.5 48.8 12 0.1 52.2 359.57 86 / 158

Tata Select Equity Fund (G) 44.195 37.9 59.8 2.5 -21.9 28.8 99.98 152 / 158

Tata Life Sc & Tech Fund (G) 46.657 44.9 75.3 23.8 -8.4 32.9 37.27 4/11

Tata Growth Fund (G) 31.49 45 64.2 -0.3 -15.5 38.2 54.31 116 / 158

Tata Equity P/E Fund (G) 31.571 32.9 52.8 7.9 -1.8 70.6 135.06 70 / 158

Tata Dividend Yield Fund (G) 20.553 31.8 50.5 13.7 1.5 51.9 107.3 86 / 158

Tata Contra Fund (G) 12.028 36.8 57.8 10.4 -3.4 26.6 105.04 86 / 158

Tata Equity Management (G) 11.326 36.1 51.2 14.5 -0.6 13.1 206.88 107 / 158

Tata Infra Tax Saving Fund (G) 13.388 33 -- -- -- -- 10.23 47 / 27

** Moneycontrol (MC) Rank Within Fund Class

Mutual Funds managed by Mahendra Jajoo / Sachin Relekar




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Comparative Analysis of the Debt Schemes of the three Mutual Funds:

SBI Mutual Fund

Magnum Insta Cash Fund


To mitigate interest rate risk and generate opportunities for regular income through a portfolioinvesting predominantly in floating rate securities and money market instruments.


1. NAV

(a) Dividend Scheme

(i)

PRESENT- 10.62 (as per 15/07/2009) Not substantially above the face value.

(ii) HISTORIC-



A horizontal line of historical NAV.



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High 10.784

Low 10.252

Not much difference in highest and lowest NAVs.

(b) Growth Scheme

(i) PRESENT- 15.4353 (as per 15/07/2009)

This scheme has a little better NAV compared to the dividend scheme.

(ii) HISTORIC-



In historical NAV record also, the growth scheme has performed better than the dividend

scheme.


High 19.915

Low 13.168

Sufficiently good figures.



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(a) Dividend Scheme- 5%


Period Returns (%) Rank #1 mth 0.3 37

3 mths 1.1 28

6 mths 2.7 26

1 year 7.3 27

2 year 15.8 25

3 year 24.5 15

5 year 38.2 9

# Moneycontrol Rank within 63 Money Market

Schemes

Returns have decreased gradually over the period of 5 years and rankings have also gonedown, which suggests a deteriorating performance of the fund.




1 mth 0.4 20

3 mths 1.2 16

6 mths 3 9

1 year 7.7 11

2 year 16.4 13

3 year 25.3 9

5 year 38.9 6

# Moneycontrol Rank within 63 Money Market

Schemes

Returns can be justifies but rankings again disproves the decision of investing in this fund.





30


Only an average performance has been delivered by the fund managers in other schemes

which they managed. So, not very promising.

Over all comment: being a debt fund, this is a static return providing avenue of investment.Does not seem attractive, except in times of very unstable market conditions.




SBI Magnum Income Fund (G) 21.802 0.3 -0.4 6.5 7.1 13.9 106.25 66 / 88

SBI Magnum Insta Cash (G) 19.92 1.1 2.7 7.3 15.8 24.5 3,073.46 28 / 40

SBI Magnum Cash-Liq Floater -G 15.439 1.2 3 7.7 16.4 25.3 128.73 11/40

SBI Magnum Income Plus -IP (G) 14.737 5.6 10.5 7.4 10 21 3.76 17 / 20

SBI Magnum Income Plus-SP (G) 10.548 0.2 0.4 0.7 -0.5 1.7 1.58 66 / 88

SBI Magnum NRI - STB Plan (G) 10.93 0.1 0.3 0.9 1.7 2.8 0.23 77 / 64

SBI Magnum NRI - LTB Plan (G) 10.584 0.2 0.6 0.1 -1.9 1.4 1.71 66 / 88

SBI Magnum Income-FRP -STP (G) 13.716 1.1 2.7 9.2 15.9 23.8 14.69 11/40

SBI Magnum Income-FRP-LTRP (G) 13.465 0.9 2.3 8 14 22.4 6.88 29 / 40

SBI Magnum Income-FRP-LT IP -G 11.945 -- -- -- -- -- 0.15 16 / 32

SBI Magnum MIP - Floater (G) 11.725 2.8 4.6 3.9 5.7 15.6 10.48 26 / 32

SBI Capital Protection - Sr -I 10.571 3.3 9.6 11.9 -- -- 208.56 14 / 20


Mutual Funds managed by Ganti Murthy




31


DBS Chola Freedom Income- Short Term Fund


An income scheme with at least 80% investments in fixed income securities & balance in money

market instruments with the objective of generating regular and stable income for the unit

holders of the scheme.


1. NAV

(a) Dividend Scheme

(i) PRESENT- 13.244 (as per 15/07/2009)

(ii) HISTORIC-




High 16.036

Low 10.223



32

(b) Growth Scheme

(i) PRESENT- 14.142 (as per 15/07/2009)

(ii) HISTORIC-




High 18.320

Low 10.010





1 mth 0.4 60

3 mths 1.2 41

6 mths 2.9 35

1 year 7.5 52

2 year 16.6 37

3 year 25.6 32

5 year 36.9 27

# Moneycontrol Rank within 98 Debt - Short Term

Schemes

The returns have been quite good. But, other funds of similar kind have higher rankings,

that means they have performed better than this one.



33




1 mth 0.4 60

3 mths 1.2 416 mths 2.9 35

1 year 7.5 52

2 year 16.6 37

3 year 25.6 32

5 year 36.9 27


Schemes

Again, almost same picture in case of the growth scheme as that in the dividend scheme.




Except in one scheme, the fund managers performance has been below average.

Over all comment: debt schemes do not seem attractive- on parameter of return, growth in

NAV, dividends and expected performance.




DBS Chola Triple Ace (G) 24.314 2.6 -3.1 10.2 0.9 3.3 6.3 53 / 64

DBS Chola Freedom Inc -STF -G 14.146 1.2 2.9 7.5 16.6 25.6 580.73 50 / 64

DBS Chola Gilt - Inv Plan (G) 20.951 2.3 -9.6 3.2 9.2 20 1.15 52 / 88

DBS Chola Liquid (G) 17.873 1.1 2.6 7.3 15.6 23.9 57.34 31 / 40

DBS Chola Liquid - Inst Plus-G 18.065 1.2 2.7 7.5 16 24.5 27.82 45 / 34

DBS Chola Freedom Inc STF-IP-G 14.351 1.3 3 7.8 16.9 26 1,011.38 30 / 32


DBS Chola Short Term FRF (G) 12.989 0.6 1.2 4.7 13.5 22.8 2.48 33 / 40

DBS Chola Liquid-Super Inst -G 12.294 1.2 2.7 7.6 16.1 -- 485.04 47 / 34

DBS Chola FMP Sr6 (410 Days)-G 10.985 -- -- -- -- -- 43.85 8 /

DBS Chola FMP Sr6(Qtrly III)-G 10.272 -- -- -- -- -- 265.37 10 /

DBS Chola Treasury Mgmt. (G) 11.935 -- -- -- -- -- 0.03 2/64


Mutual Funds managed by Bekxy Kuriakose




34

Tata Mutual Fund

Tata Liquidity Management

Fund


The investment objective of the scheme is to generate reasonable returns along with high

liquidity and safety by investing in a portfolio of money market and other short term debt

instruments.


1. NAV

(a) Dividend Scheme

(i) PRESENT- 1005.652 (as per 15/07/2009)

Unlike NAVs of other similar schemes, this scheme has got a very high NAV of above Rs.

1000.

(ii) HISTORIC-





35

Very common to the debt schemes, this scheme’s NAV is also a static line against the

fluctuating sensex curve.


High 1007.501

Low 1000.000

(b) Growth Scheme

(i) PRESENT- 1234.124 (as per 15/07/2009)

The growth scheme has got a better NAV for its units, as it may or may not pay dividends.

(ii) HISTORIC-



Historic NAVs have an upward moving pattern towards the present time, which suggests a

better performance in future.


High 1234.034

Low 1000.000



36

2. Dividend History

(a) Dividend Scheme


14- July- 2009 0.41

(b) Growth Scheme






1 mth 0.2 81

3 mths 0.5 69

6 mths 1.3 57

1 year 4.6 68

2 year 11.9 51

3 year 20.4 41

5 year - 0


Schemes

The returns have been decreasing over the years. Rankings are also disappointing.




1 mth 0.2 81

3 mths 0.5 69

6 mths 1.3 571 year 4.6 68

2 year 11.9 51

3 year 20.4 41

5 year - -


Schemes



37

Same as the dividend scheme, while a better performance was expected.




The fund manager has got average rankings for all the funds he managed. His past

performance does not assure me of a superb performance of this scheme.

Over all comment: an average fund, with average returns. Not very much attractive to invest

in.




Tata Liquid Fund (App.) 2059.564 1.1 2.7 7.3 16 24.8 61.03 22 / 40

Tata Income Plus - Plan A (G) 14.329 -0.2 0.4 6.7 11.6 18.7 2.08 61 / 64

Tata Income Plus - Plan B (G) 14.37 -0.2 0.4 6.7 11.6 18.7 0.67 61 / 64

Tata Liquid Fund - HIP (G) 1488.058 1.1 2.7 7.5 16.2 25.2 47.32 41 / 34

Tata Liquid Fund - SHIP (G) 1651.153 1.2 2.9 7.7 16.7 25.9 4,471.45 26 / 34

Tata Monthly Income Fund (G) 17.64 2.7 6.5 13.3 16.2 28 22.93 20 / 32

Tata Dynamic Bond- Plan A(G) 13.852 0.4 -0.9 3 11.7 19.9 3.42 61 / 64

Tata Floating Rate - LTP (G) 13.365 -- 1.1 6.5 14.1 20.4 6.19 33 / 40

Tata Gilt RP (28/02/09) (G) 12.436 -- -- -- -- -- -- 30 / 88

Tata Gilt RP (28/02/10) (G) 12.389 -0.7 -5.3 10.3 13.8 22.6 0.26 57 / 88

Tata Gilt RP (28/02/11) (G) 12.378 -0.7 -5.3 10.3 13.6 22.5 0.03 57 / 88

Tata Gilt RP (28/02/13) (G) 12.457 -0.7 -5.3 10.3 13.8 22.6 0.03 57 / 88

Tata Gilt RP (28/02/25) (G) 12.29 -0.8 -5.3 10.3 13.8 22.6 126.12 57 / 88

Tata MIP Plus Fund (G) 14.221 6.4 11.8 12.4 12.9 26.3 37.57 21 / 32

Tata Floater Fund (G) 13.295 1.3 3.1 8.1 17.5 26.8 4,458.69 12/40

Tata Liquidity Mgmt Fund (G) 1234.183 0.5 1.3 4.6 11.9 20.4 3.93 61 / 64

Tata Treasury Manager-SHIP (G) 1013.086 -- -12 -6.9 0.8 -- 47.86 60 / 34

Tata FIPF Scheme-C1- RP (G) -- -- -- -- -- -- 10 /

Tata FIPF Scheme-C1 - IP (G) -- -- -- -- -- -- 10 /

Tata FIPF Scheme-C2- RP (G) 11.354 0.6 3.2 7.9 -- -- 0.2 7 /

Tata FIPF Scheme-C2 - IP (G) 10.461 -- -- -- -- -- 0.4 9 /

Tata FIPF Scheme-C3- RP (G) 11.448 0.7 3.7 8.6 -- -- 0.87 5 /

Tata FIPF Scheme-C3 - IP (G) -- -- -- -- -- -- 10 /

Tata Liquid Fund - SHIPP (G) -- -- -- -- -- -- 64 / 34


Mutual Funds managed by Raju Sharma




38

Comparative Analysis of the Balanced/ Hybrid Schemes of the three

Mutual Funds:

SBI Mutual Fund

Magnum Balanced Fund


To provide investors long term capital appreciation along with the liquidity of an open-ended

scheme by investing in a mix of debt and equity. The scheme will invest in a diversified

portfolio of equities of high growth companies and balance the risk through investing the restin a relatively safe portfolio of debt.


1. NAV

(a) Dividend Scheme

(i) PRESENT- 25.78 (as per 15/07/2009)

(ii) HISTORIC-





39

The fund has performed better in distant past, but has been stumbling in recent past in

maintaining its NAV at par with the sensex.


High 35.350

Low 5.459

The highest NAV suggests a good performance but the lowest one, that is almost half of

the face value indicates the high fluctuations that can occur in case of a balanced fund

which has a portfolio of both equity and debt securities.

(b) Growth Scheme

(i) PRESENT- 39.87 (as per 15/07/2009)

(ii) HISTORIC-



Fund has been able to maintain its NAV well above the market index and looks an

attractive destination for putting my money.


High 53.430

Low 4.264



40

In growth scheme also NAV has suffered a huge loss, most probably because of poor

performance of stock market.

2. Dividend History

(a) Dividend Scheme


07-Nov-2007 4.00

14-Nov-2005 3.90

19-Jan-2005 2.00

30-Jan-2004 2.00

27-Oct-2003 1.40

18-Mar-2000 3.00

Dividends of 14% to 40% suggest a good growth in the fund’s assets.

(b) Growth Scheme



(a) Dividend Scheme- 466.7%



1 mth 2.7 22

3 mths 26.8 11

6 mths 44 9

1 year 14.4 12

2 year 3 16

3 year 43.8 10

5 year 204.6 2# Moneycontrol Rank within 38 Balanced

Schemes

Both absolute returns and rankings have been very attractive, but for the distant past.

The low returns and rankings belong to one/ three or six months’ periods, which may or

may not forecast the future returns.



41




1 mth 2.7 22

3 mths 26.8 116 mths 44 9

1 year 14.4 12

2 year 3 16

3 year 43.8 10

5 year 204.6 2

# Moneycontrol Rank within 38 Balanced

Schemes

The growth scheme also has performed almost same as the dividend scheme.




The fund manager has got mixed rankings for his performance as manager of other funds.

Over all comment: the growth scheme looks attractive as it has been providing good returns

over past many years and being a balanced scheme, it has advantages of both equity and

debt markets.




SBI Magnum Global Fund (G) 37.02 51.2 75.1 1.7 -23.7 22.9 1,086.99 54 / 158

SBI Magnum NRI Fund - FAP (G) 23.598 27.8 44.9 5.9 -4.9 15.8 9.58 174 / 158

SBI Magnum Emerging Busi (G) 24.95 48.8 68.7 -- -27.8 16 148.77 60 / 158

SBI Magnum Balanced Fund (G) 40.6 26.8 44 14.4 3 43.8 428.3 12/34

SBI Magnum Multicap Fund (G) 14.4 33 52.2 4.7 -14.8 22.1 627.45 137 / 158

SBI Tax Advantage Sr-1 (G) 9.02 28.7 51.1 3.9 -- -- 576.37 8/27


Mutual Funds managed by Ritesh Sheth




42


DBS Chola Monthly Income Plan


The primary investment objective of DBS Chola Monthly Income plan is to generate Monthly

Income through investments in range of Debt, Equity and Money Market Instruments.


1. NAV

(a) Dividend Scheme

(i) PRESENT- 11.658 (as per 15/07/2009)

(ii) HISTORIC-



The NAV pattern of this scheme clearly reflects the asset allocation of it. Only 5% of its

total corpus is invested in equity, 50% in debt securities and balance in money market

securities. So, though it is a balanced fund, it is unable to make use of upward trends of stock market due to its asset allocation scheme.


High 12.942

Low 10.023



43

(b) Growth Scheme

(i) PRESENT- 17.748 (as per 15/07/2009)

(ii) HISTORIC-



Same performance as the dividend scheme.


High 17.763

Low 10.092

2. Dividend History

(a) Dividend Scheme


25- June- 2009 0.26

(b) Growth Scheme




44




Period Returns (%) Rank #1 mth 1.6 14

3 mths 5.7 16

6 mths 7.3 20

1 year 7.8 23

2 year 32.2 2

3 year 42.8 3

5 year 64 6

# Moneycontrol Rank within 32 Monthly Income Plan

Schemes

Its performance till 2 years back has been good enough to make one invest in it, but

recent performance tells another story. Returns and ranks both have fallen substantially.




1 mth 1.6 14

3 mths 5.7 16

6 mths 7.3 20

1 year 7.8 23

2 year 32.2 2

3 year 42.8 3

5 year 64 6

# Moneycontrol Rank within 32 Monthly Income Plan

Schemes

Growth scheme has performed almost same as the dividend scheme has.





45


Sufficiently good performance by fund managers in some cases, but very horrible in some

others.

Over all comment: It may be wise to invest in this scheme, when the stock market is not

performing well, but at present time, it does not look attractive.




DBS Chola Triple Ace (G) 24.314 2.6 -3.1 10.2 0.9 3.3 6.3 53 / 64

DBS Chola Freedom Inc -STF -G 14.146 1.2 2.9 7.5 16.6 25.6 580.73 50 / 64

DBS Chola Opportunities (G) 33.29 42.6 70.4 8.6 2.5 84.8 61.3 20 / 158

DBS Chola Gilt - Inv Plan (G) 20.951 2.3 -9.6 3.2 9.2 20 1.15 52 / 88

DBS Chola Growth Fund (G) 30.33 35.3 58.8 8.6 -14.1 31.8 15.81 93 / 158

DBS Chola Liquid (G) 17.873 1.1 2.6 7.3 15.6 23.9 57.34 31 / 40

DBS Chola Liquid - Inst Plus-G 18.065 1.2 2.7 7.5 16 24.5 27.82 45 / 34

DBS Chola Freedom Inc STF-IP-G 14.351 1.3 3 7.8 16.9 26 1,011.38 30 / 32


DBS Chola Midcap Fund (G) 26.72 45.6 67.5 11 -12.2 38.7 17.65 58 / 158

DBS Chola Multi-Cap Fund (G) 15.17 36.9 56.6 2.8 -23.2 8.8 19.48 128 / 158

DBS Chola Global Advantage (G) 9.15 31.8 39.3 -14.2 -36.4 -22.5 6.28 193 / 158

DBS Chola Short Term FRF (G) 12.989 0.6 1.2 4.7 13.5 22.8 2.48 33 / 40

DBS Chola Tax Saver Fund (G) 12.12 40.4 66.5 9.2 -17.4 21.2 28.46 4/27

DBS Chola Contra Fund (G) 8.39 38.2 52 -3.2 -31.8 -5.7 9.89 174 / 158

DBS Chola Liquid-Super Inst -G 12.294 1.2 2.7 7.6 16.1 -- 485.04 47 / 34

DBS Chola Hedged Equity (G) 11.11 29.3 50.7 6.7 -3.3 -- 20.17 107 / 158

DBS Chola FMP Sr6 (410 Days)-G 10.985 -- -- -- -- -- 43.85 8 /

DBS Chola FMP Sr6(Qtrly III)-G 10.272 -- -- -- -- -- 265.37 10 /

DBS Chola Treasury Mgmt. (G) 11.935 -- -- -- -- -- 0.03 2/64

DBS Chola Infrastructure (G) 6.76 42.9 -- -12.7 -- -- 36.39 63 / 158

DBS Chola Small Cap Fund (G) 4.43 41.1 -- -19.7 -- -- 20.23 86 / 158


Mutual Funds managed by Bajrang Kumar Bafna/Anant Deep Katre/Bekxy Kuriakose




46

Tata Mutual Fund

Tata Balanced Fund


The investment objective of the scheme is to provide income distribution and / or medium to

long term capital gains while at all times emphasizing the importance of capital appreciation.


1. NAV

(a) Dividend Scheme

(i) PRESENT- 39.201 (as per 15/07/2009)

Present NAV has been well above the face value and NAVs of other similar funds (SBI

Magnum Balanced Fund and DBS Chola Monthly Income Plan).

(ii) HISTORIC-



Fund has been able to not only track sensex but to perform better than it in most of the

cases.



47


High 54.597

Low 6.415

Highest NAV is good, but the lowest one has lost the value by more than 30% of the face

value.

(b) Growth Scheme

(i) PRESENT- 58.465 (as per 15/07/2009)

A better NAV than that of many other similar schemes.

(ii) HISTORIC-



Historic NAV shows similar pattern to that of the sensex.


High 78.911

Low 8.690

Highest NAV has been very attractive and the lowest one has also not lost much value

(below 15%).



48

2. Dividend History

(a) Dividend Scheme


24-Apr-2009 1.0007-Dec-2007 1.00

13-Jul-2007 2.00

01-Dec-2006 4.00

12-Jan-2005 3.00

11-Mar-2004 1.50

09-Sep-2003 1.25

03-Apr-2000 2.50

15-Jun-1999 1.25

The fund has paid regular dividends 4 years from its launch.

(b) Growth Scheme


09-Sep-2003 1.25

Unlike the general trend, the growth scheme has also paid dividend, which makes it even

more preferable for investment.





1 mth 4.9 1

3 mths 30 5

6 mths 45.8 4

1 year 15.2 10

2 year 4.5 12

3 year 53.1 7

5 year 180.4 5


Schemes



49

Excellent performance, both in past and present. There has been a substantially high rate

of return except for 2 years back.

(b) Growth Scheme: 641%

Absolute Returns (as on Jul 15, 09)Period Returns (%) Rank #

1 mth 4.9 1

3 mths 30 5

6 mths 45.8 4

1 year 15.2 10

2 year 4.5 12

3 year 53.1 7

5 year 180.4 5


Schemes

Almost same performance as the dividend scheme.





50


Fund managers have got mixed rankings. In some cases, they have got above average

rankings and in some cases, extremely poor.


Over all comment: the best scheme as per my investment preferences and expectations

about the returns. Good selection of assets (Equity & Related – 65%- 75% and Debt, MM Sec

25%- 35%) makes the fund earn better return than its competitors.




Tata Balanced Fund (G) 60.019 30 45.8 15.2 4.5 53.1 218.37 15 / 34

Tata Young Citizens Fund 16.667 18.8 28 15.8 3.1 32.7 157.94 23 / 34

Tata Tax Saving Fund 41.126 36.4 52.4 8.3 -12.3 31.2 137.3 23 / 27

Tata Pure Equity Fund (G) 71.949 35.5 48.8 12 0.1 52.2 359.57 86 / 158

Tata Life Sc & Tech Fund (G) 46.657 44.9 75.3 23.8 -8.4 32.9 37.27 4/11

Tata Index Fund Nifty Plan (A) 26.192 29 52.7 5.4 -5.8 39.1 8.17 24 / 28

Tata Index Fund Sensex Plan(A) 36.137 34.3 57.1 6.7 -6.8 36.7 6.79 13 / 28

Tata Equity Opp. Fund (G) 58.256 38.6 55.3 -3.3 -15.4 34 368.05 174 / 158

Tata Growth Fund (G) 31.49 45 64.2 -0.3 -15.5 38.2 54.31 116 / 158

Tata Equity P/E Fund (G) 31.571 32.9 52.8 7.9 -1.8 70.6 135.06 70 / 158

Tata Dividend Yield Fund (G) 20.553 31.8 50.5 13.7 1.5 51.9 107.3 86 / 158

Tata Infrastructure Fund (G) 27.897 37.8 58.1 3 -2.6 66.1 2,198.01 73 / 158

Tata Contra Fund (G) 12.028 36.8 57.8 10.4 -3.4 26.6 105.04 86 / 158Tata Equity Management (G) 11.326 36.1 51.2 14.5 -0.6 13.1 206.88 107 / 158

Tata Capital Builder Fund (G) 10.449 31.3 44.7 -7.8 -16.9 -- 151.12 137 / 158

Tata Indo-Global Infra (G) 6.517 24.6 45.3 -8.9 -- -- 1,198.99 193 / 158

Tata Growing Eco-Infra - A (G) 9.515 27.3 50.5 4.8 -- -- 33.28 193 / 158

Tata Growing Eco-Infra - B (G) 9.934 37.3 58.8 9.2 -- -- 137.27 152 / 158

Tata Infra Tax Saving Fund (G) 13.388 33 -- -- -- -- 10.23 47 / 27


Mutual Funds managed by M. Venugopal / Mahendra Jajoo




51

Superiority of Tata Balanced Fund (G) over other schemes that I

studied:

1. Though past performance is not a guarantee for future performance; but it certainly gives

an idea about the direction in which the fund is compared to the market index.

Tata Balanced Fund (G) has been ahead of almost all other schemes of similar type in terms of

Absolute returns. Though losses have also been higher than the average in some years but

considering the current upward trends in stock market, this scheme looks attractive. This

scheme invests 65% to 75% of its total pooled money in equities.

The graph below shows it.

Relative Performance (Fund Vs Category Average)

Source: http://www.valueresearchonline.com/

2. Units of this scheme have NAV of Rs. 58.465 (as per 15/07/2009), which is higher than that of

the other two of the same category- Magnum Balanced Fund and DBS Chola Monthly Income Plan as

well as those of other schemes.

A higher NAV shows better than average performance.

3. Fund managers of this scheme- M. Venugopal / Mahendra Jajoo have a good track record of

managing funds profitably.

4. Being an equity oriented fund, Tata Balanced Fund (G) has good chances to benefit from the

upward movement of the stock market. In its performance for past 5 years, it has been better thanalmost all of the funds of similar category.

5. This scheme has shown a sustainable performance in past and has a good mix of income generating

and growth oriented securities in its portfolio.



References:

Book: Investment Banking- Pratap G. Subramanyam

Websites:

1. SBI Mutual Fund: http://www.sbimf.com/

2. DBS Chola Mutual Fund: http://www.dbscholamutualfund.com/

3. Tata Mutual Fund: www.tatamutualfund.com/

4. http: //www.moneycontrol.com

5. http://www.icicipruamc.com/stat/html/amc/assist/structure.html

6. http://www.mysmp.com/mutual-funds/mutual-fund-distributors.html

7. http://www.assetmanagement.hsbc.com/in/mutual-funds/learning-

centre/investor-progrm/mut_fund_types.html 8. http://www.iinvestor.com/scripts/IIH021C1.asp?SectionId=2&CategoryId=22&Arti

cleId=1510

9. http://www.iloveindia.com/finance/mutual-funds/index.html

Mutual Funds by Tripti Sao, SIBM- B

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