Mutual Funds Harsh

8/19/2019 Mutual Funds Harsh

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ANALYSIS OF MUTUAL FUNDS

Submitted in Partial Fulfillmentfor the

Degree ofBachelor of Buine Studie

B!

"arh #ano$ia%&oll No'BBS(()* ,Batch '+((*,+(-+ .

To

DEEN DAYAL UPADHYAYA COLLEGEUniversity of Delhi

Shivaji Marg, ara!"#ra Ne$ Delhi%&&''&(


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ACKNOWLEDGEMENT

Nothing concrete can be achie/ed 0ithout an o1timal combination of in1iration and dedication2 It

i onl! the criti3ue from ingeniou intellectual that hel1ed tranform a 1roduct into a 3ualit!

1roduct

At the /er! outet4 it i 0ith a dee1 ene of gratitude that I ac5no0ledge the able guidance recei/ed

from Dr. Yogieta Mehra 4 for her 0illingne to hare her 5no0ledge and ma5ing me 0or5 on

uch a crucial and informati/e 1ro$ect2 I 0ant to ho0 m! gratitude to0ard Dr. Yogieta Mehra for

0hom I could not e61re in 0ord ho0 much hel1ful he 0a in man! 0a! to ait in m! 1ro$ect2

The 1ro$ect o0e much of it 0or5 to her generati/e uggetion4 illuminating comment4

encouragement and ceaele 1atience2

I 0ould fail in m! dut!4 if I do not ma5e a 1ecial mention of all other 0ho hel1ed me directl!or indirectl! in 1uruit of thi 1ro$ect


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INDEX CONTENTS PAGE NO.

CHAPTER-1 INTRODCTION TO THE TOPIC - ,M7ANIN8 OF MUTUAL FUND +

,"ISTO&Y OF INDIAN MUTUAL FUND 9

,OB:7;TI


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,I,LIOGRAPHY 9>

Chater -I

I/tro02tio/


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What i3 a Mta4 $/0

A Mutual Fund i a trut that collect the a/ing of a number of in/etor 0ho hare a common

financial goal and 1ool it together to create a larger reource of mone!2 The mone! thu

collected i in/eted b! the fund manager in different t!1e of ecuritie de1ending u1on the

ob$ecti/e of the cheme2 Thee could range from hare to debenture to mone! mar5et

intrument2

The income earned through thee in/etment and the ca1ital a11reciation realied b! the

cheme are hared b! it unit holder 1ro1ortionatel! i2e2 on the bai of the number of unit

o0ned b! them2

Thu a Mutual Fund i the mot uitable in/etment for the common man a it offer an

o11ortunit! to in/et in a di/erified4 1rofeionall! managed 1ortfolio at a relati/el! lo0 cot2

An!bod! 0ith an! ur1lu mone! that can be in/eted4 e/en a little a a fe0 thouand ru1ee

can in/et in Mutual Fund2 7ach Mutual Fund cheme ha a defined in/etment ob$ecti/e and

trateg!2 The team underta5e thi in the mot 1rofeional manner2 A mutual fund i thu the

ideal in/etment /ehicle for toda!E com1le6 and modern financial cenario2

Price change in the aet are dri/en b! global e/ent occurring e/er! da!4 in,fact e/er! minute

in fara0a! 1lace2 It 0ill be /er! difficult4 in,fact ne6t to im1oible for an ordinar! indi/idual to

ha/e the 5no0ledge4 5ill4 inclination and time to 5ee1 trac5 of e/ent4 undertand their

im1lication and act 1eedil!2 An indi/idual alo find it difficult to 5ee1 trac5 of o0nerhi1 of

hi aet4 in/etment4 bro5erage due and ban5 tranaction etc2 A mutual fund i the an0er to

all thee ituation2 It a11oint 1rofeionall! 3ualified and e61erienced taff that manage each

of thee function on a full time bai2 The cot of hiring thee 1rofeional 1er in/etor are

/er! lo04 a the 1ool of mone! in/eted i large2 In effect4 the mutual fund /ehicle e61loit

economie of cale in all three area , reearch4 in/etment and tranaction 1roceing2


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8loball!4 there are thouand of firm offering ten of thouand of mutual fund 0ith different

in/etment ob$ecti/e2 Toda!4 mutual fund collecti/el! manage almot a much a or more

mone! a com1ared to ban52

S7BI define mutual fund a G Mutual fund mean a fund etablihed in the form of a

trut b! a 1onor to raie mone! b! the Trutee through the ale of unit to the 1ublic

under one or more cheme for in/eting in ecuritie in accordance 0ith thee

regulationH2

There are > entitie o1erating in a mutual fund 2 The! are '

-. An agenc! 0hich mobilie a/ing and get a commiion

+. An in/etment agenc! 0hich get a 1recribed rate of commiion

>. A trutee intitution4 0hich i normall! a Ban5 0hich hold the toc5 of ecuritie of

the Mutual fund2

In India the In/etment trut are etablihed under the ;om1anie Act2

There are difference bet0een Mutual fund and in/etment com1anie 0hich can be a

follo0'

I/ ter53 o6 o78e2ti9e ' In cae of mutual fund the mobiliation of a/ing i from

the in/etor4 motl! houehold 0herea in cae of in/etment com1anie it i a/ing of

houehold 4 cor1orate ector2 "ighet in/etment belong to the 1romoter of the

com1an!2

I/ ter53 o6 orga/i3atio/ In cae of Mutual fund it i a 1er S7BI regulation

-**> and in cae of UTI a 1er UTI Act -*> 0herea in cae of in/etment com1anie it

i a 1er ;om1anie Act -*)

I/ ter53 o6 Caita4 3tr2tre ' For Mutual fund initial ca1ital 0ould be 1ro/ided

b! the 1onor2 Scheme 0ie ca1ital i decided baed on the nature of cheme 2 Unit are

offered out of the cheme ca1ital 2 No debt ca1ital2 =herea4 in/etment com1anie4 on


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1ar 0ith indutrial com1anie 2 No cheme 0ie ca1ital out of the e3uit! ca1ital2 ;a1ital

ma! be debt ca1ital alo and ha the ad/antage of gearing2

I/ ter53 o6 Li:i0it; In Mutual fund it i cloe ended cheme unit are traded on

the organied toc5 e6change 2 O1en ended cheme offer re1urchae of facilit! and

ome ended cheme ma! alo offer re1urchae or 1remature encahment2 =herea4 in

cae of in/etment com1anie2 The com1an! hare i traded on toc5 e6change2 No

re1urchae of hare2

I/ ter53 o6 Na5e o6 the 32he5e3 7ither o1en ended or cloe ended 0ith a 0ide

/ariet! of in/etment ob$ecti/e 0herea in cae in/etment com1anie it i neither o1en

ended or cloe ended2

Thu 0e ha/e een the difference bet0een the mutual fund and the in/etment

com1anie2 Let u no0 undertand the u1eriorit! of mutual fund o/er the other

in/etment o1tion2

Mutual fund 0ith the e61ertie and e61erienced management cadre can be able to ecure

large /arietie of high !ielding G Blue chi1H ecuritie and ho0 better reult to the

in/eting 1ublic2 Thu Mutual fund are gaining 1o1ularit! due to the follo0ing reaon'

The baic 1ur1oe of reform in financial ector 0a to enhance the generation of

dometic reource b! reducing de1endence on outide fund2 Thi call for a mar5et

baed intitution2 2 Mutual fund are bet uited for thi 1ur1oe2

Ordinaril! in/etor in the mar5et i not ure of getting hare in the normal 1rocedure2

In/eting in MF b! MF com1anie get firm allotment2 And later elling at a higher 1rice2So in/eting in MF !ield higher return to the in/etor2

Better 5no0ledge of mar5et beha/ior ma6imie gain b! 1ro1er election and timing of

in/etment2

Di/idend and ca1ital gain are rein/eted automaticall! in MF and are not frittered

a0a!2


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MF o1eration 1ro/ide reaonable 1rotection to in/etor

The! create a0arene about benefit of in/etment in ca1ital mar5et and thu able to

mo1 u1 large amount

Foreign ca1ital inflo0 are attracted and ecure 1rofitable in/etment a/enue abroad for

dometic a/ing through the o1ening u1 of off hore fund in /ariou foreign countrie2

Diburing fund in /ariou indutrial ector in /ie0 of booming trend ha led the

1o1ularit! of MF

&i5 of lo due to ill informed and miinformed 1urchae ? ale i reduced2 &i5 are

reduced due to di/erification of 1ortfolio in term of com1anie and indutrie2

The! are controlled and regulated b! S7BI and conidered afe2

Thu MF ha/e man! ad/antage e/en for an indi/idual 0ho 0ant to 1ut hi a/ing in

/ariou 1lace and not onl! earn high !ield but alo afe landing later 0hen he 0ant to

ac3uire the mone! bac52

HISTORY O$ THE INDIAN MTAL $ND INDSTRY

The mutual fund indutr! in India tarted in -*> 0ith the formation of Unit Trut of India4 at the

initiati/e of the 8o/ernment of India and &eer/e Ban5 the2 The hitor! of mutual fund in India

can be broadl! di/ided into fi/e ditinct 1hae

$ir3t Pha3e < 1*&"-)(

An Act of Parliament etablihed Unit Trut of India %UTI. on -*>2 It 0a et u1 b! the &eer/e

Ban5 of India and functioned under the &egulator! and adminitrati/e control of the &eer/e

Ban5 of India2 In -*9C UTI 0a de,lin5ed from the &BI and the Indutrial De/elo1ment Ban5 of

India %IDBI. too5 o/er the regulator! and adminitrati/e control in 1lace of &BI2 The firt

cheme launched b! UTI 0a Unit Scheme -*@2

Se2o/0 Pha3e < 1*)(-1**! =E/tr; o6 P74i2 Se2tor $/03>


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-*C9 mar5ed the entr! of non, UTI4 1ublic ector mutual fund et u1 b! 1ublic ector ban5 and

Life Inurance ;or1oration of India %LI;. and 8eneral Inurance ;or1oration of India %8I;.2

SBI Mutual Fund 0a the firt non, UTI Mutual Fund etablihed in :une -*C9 follo0ed b!

;anban5 Mutual Fund %Dec C9.4 Pun$ab National Ban5 Mutual Fund %Aug C*.4 Indian Ban5

Mutual Fund %No/ C*.4 Ban5 of India %:un *(.4 Ban5 of Baroda Mutual Fund %Oct *+.2 LI;

etablihed it mutual fund in :une -*C* 0hile 8I; had et u1 it mutual fund in December

-**(2

Thir0 Pha3e < 1**!-?++! =E/tr; o6 Pri9ate Se2tor $/03>

=ith the entr! of 1ri/ate ector fund in -**>4 a ne0 era tarted in the Indian mutual fund

indutr!4 gi/ing the Indian in/etor a 0ider choice of fund familie2 Alo4 -**> 0a the !ear in

0hich the firt Mutual Fund &egulation came into being4 under 0hich all mutual fund4 e6ce1t

UTI 0ere to be regitered and go/erned2 The ert0hile #othari Pioneer %no0 merged 0ith

Fran5lin Tem1leton. 0a the firt 1ri/ate ector mutual fund regitered in :ul! -**>2

The -**> S7BI %Mutual Fund. &egulation 0ere ubtituted b! a more com1reheni/e and

re/ied Mutual Fund &egulation in -**2 The indutr! no0 function under the S7BI %Mutual

Fund. &egulation -**2

$orth Pha3e < 3i/2e $e7rar; ?++!

In Februar! +((>4 follo0ing the re1eal of the Unit Trut of India Act -*> UTI 0a bifurcated

into t0o e1arate entitie2 One i the S1ecified Underta5ing of the Unit Trut of India 0ith aet

under management of &2+*4C>) crore a at the end of :anuar! +((>4 re1reenting broadl!4 theaet of US @ cheme4 aured return and certain other cheme2 The S1ecified Underta5ing of

Unit Trut of India4 functioning under an adminitrator and under the rule framed b!

8o/ernment of India and doe not come under the 1ur/ie0 of the Mutual Fund &egulation2


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$i6th Pha3e - ?++" O/@ar03 =Gro@th a/0 Co/3o4i0atio/>

The indutr! ha alo 0itneed e/eral merger and ac3uiition recentl!4 e6am1le of 0hich are

ac3uiition of cheme of Alliance Mutual Fund b! Birla Sun Life4 Sun F; Mutual Fund and

PNB Mutual Fund b! Princi1al Mutual Fund2 Simultaneoul!4 more international mutal fund

1la!er ha/e entered India li5e Fidelit!4 Fran5lin Tem1leton Mutual Fund etc2 There 0ere +*

fund a at the end of March +((2 Thi i a continuing 1hae of gro0th of the indutr! through

conolidation and entr! of ne0 international and 1ri/ate ector 1la!er2

O,#ECTIE O$ THE STDY

Thi 1ro$ect BA/a4;3i3 o6 Mta4 $/03 I/ I/0ia ha been underta5en b! mein order to',

• To tud! 0hat 5ind of mutual fund are there2

• To find 0hether the fund gi/e return or not2

• To tud! mar5et trend of the mutual fund2

• To 5no0 the regulator! frame0or5 of the fund2

• To find 0hat are the ma$or 1la!er in the indutr!2


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Chater - II

Literatre Re9ie@


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HOW DOES MTAL $ND WORK

The 0or5ing of Mutual Fund can be briefl! tated in the form of the 1oint belo0' ,

• A draft offer document i 1re1ared at the time of launching the fund2 T!1icall!4 it 1re

1ecifie the in/etment ob$ecti/e of the fund4 the ri5 aociated4 the cot in/ol/ed in

the 1roce and the broad rule for entr! into and e6it from the fund and other area of

o1eration2 In India4 a in mot countrie4 thee 1onor need a11ro/al from a regulator4

S7BI %Securitie e6change Board of India. in our cae2 S7BI loo5 at trac5 record of the

1onor and it financial trength in granting a11ro/al to the fund for commencing

o1eration2

• A 1onor then hire an aet management com1an! to in/et the fund according to the

in/etment ob$ecti/e2

• It alo hire another entit! to be the cutodian of the aet of the fund and 1erha1 a third

one to handle regitr! 0or5 for the unit holder %ubcriber. of the fund2


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In the Indian conte6t4 the 1onor 1romote the Aet Management ;om1an! alo4 in 0hich it

hold a ma$orit! ta5e2 In man! cae a 1onor can hold a -((J ta5e in the Aet

Management ;om1an! %AM;.2 72g2 Birla 8lobal Finance i the 1onor of the Birla Sun Life

Aet Management ;om1an! Ltd24 0hich ha floated different mutual fund cheme and alo

act a an aet manager for the fund collected under the cheme2

ORGANISATION O$ A MTAL $ND

There are man! entitie in/ol/ed and the diagram belo0 illutrate the organiational et

u1 of a mutual fund'

Orga/iatio/ o6 a Mta4 $/0


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T;e3 O6 Mta4 $/03

• Oe/-e/0e0 $/03

An o1en,end fund i one that i a/ailable for ubcri1tion all through the !ear2 Thee do not ha/e

a fi6ed maturit!2 In/etor can con/enientl! bu! and ell unit at Net Aet


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• I/2o5e $/03

The aim of income fund i to 1ro/ide regular and tead! income to in/etor2 Such cheme

generall! in/et in fi6ed income ecuritie uch a bond4 cor1orate debenture and 8o/ernment

ecuritie2 Income Fund are ideal for ca1ital tabilit! and regular income2

• ,a4a/2e0 $/03

The aim of balanced fund i to 1ro/ide both gro0th and regular income2 Such cheme

1eriodicall! ditribute a 1art of their earning and in/et both in e3uitie and fi6ed income

ecuritie in the 1ro1ortion indicated in their offer document2 In a riing toc5 mar5et4 the NA<

of thee cheme ma! not normall! 5ee1 1ace4 or fall e3uall! 0hen the mar5et fall2 Thee are

ideal for in/etor loo5ing for a combination of income and moderate gro0th2

• Mo/e; Maret $/03

The aim of mone! mar5et fund i to 1ro/ide ea! li3uidit!4 1reer/ation of ca1ital and moderate

income2 Thee cheme generall! in/et in afer hort,term intrument uch a treaur! bill4

certificate of de1oit4 commercial 1a1er and inter,ban5 call mone!2 &eturn on thee cheme

ma! fluctuate de1ending u1on the interet rate 1re/ailing in the mar5et2 Thee are ideal for

;or1orate and indi/idual in/etor a a mean to 1ar5 their ur1lu fund for hort 1eriod2

• Loa0 $/03

A Load Fund i one that charge a commiion for entr! or e6it2 That i4 each time !ou bu! or

ell unit in the fund4 a commiion 0ill be 1a!able2 T!1icall! entr! and e6it load range from

-J to +J2 It could be 0orth 1a!ing the load4 if the fund ha a good 1erformance hitor!2

•

No-Loa0 $/03A No,Load Fund i one that doe not charge a commiion for entr! or e6it2 That i4 no

commiion i 1a!able on 1urchae or ale of unit in the fund2 The ad/antage of a no load fund

i that the entire cor1u i 1ut to 0or52


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• TaF Sa9i/g S2he5e3

Thee cheme offer ta6 rebate to the in/etor under 1ecific 1ro/iion of the Indian Income

Ta6 la0 a the 8o/ernment offer ta6 incenti/e for in/etment in 1ecified a/enue2

In/etment made in 73uit! Lin5ed Sa/ing Scheme %7LSS. and Penion Scheme areallo0ed a deduction u? CC of the Income Ta6 Act4 -*-2 The Act alo 1ro/ide o11ortunitie

to in/etor to a/e ca1ital gain u? )@7A and )@7B b! in/eting in Mutual Fund4 1ro/ided

the ca1ital aet ha been old 1rior to A1ril -4 +((),( and the amount i in/eted before

Se1tember >(4 +((),(2

• I/03tr; Se2i6i2 S2he5e3

Indutr! S1ecific Scheme in/et onl! in the indutrie 1ecified in the offer document2 Thein/etment of thee fund i limited to 1ecific indutrie li5e InfoTech4 FM;84 and

Pharmaceutical etc2

• I/0eF S2he5e3

Inde6 Fund attem1t to re1licate the 1erformance of a 1articular inde6 uch a the BS7 Sene6 or

the NS7 )(

• Se2tora4 S2he5e3

Sectoral Fund are thoe4 0hich in/et e6clui/el! in a 1ecified indutr! or a grou1 of indutrie

or /ariou egment uch a A 8rou1 hare or initial 1ublic offering2

S;3te5ati2 I/9e3t5e/t P4a/ =SIP>

"ere the in/etor i gi/en the o1tion of 1re1aring a 1re,determined number of 1ot,dated

che3ue in fa/our of the fund2 "e 0ill get unit on the date of the che3ue at the e6iting NA


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ADANTAGES O$ MTAL $ND

Pro6e33io/a4 Ma/age5e/t , The 1rimar! ad/antage of fund %at leat theoreticall!. i the 1rofeional management of !our mone!2 In/etor 1urchae fund becaue the! do not ha/e the

time or the e61ertie to manage their o0n 1ortfolio2 A mutual fund i a relati/el! ine61eni/e

0a! for a mall in/etor to get a full,time manager to ma5e and monitor in/etment2 In/etor

are e61oed to reduced in/etment ri5 due to 1ortfolio di/erification4 economie of cale in

tranaction cot and 1rofeional management

Di9er3i6i2atio/ , B! o0ning hare in a mutual fund intead of o0ning indi/idual toc5 or

bond4 !our ri5 i 1read out2 The idea behind di/erification i to in/et in a large number of

aet o that a lo in an! 1articular in/etment i minimied b! gain in other2 In other 0ord4

the more toc5 and bond !ou o0n4 the le an! one of them can hurt !ou %thin5 about 7nron.2

Large mutual fund t!1icall! o0n hundred of different toc5 in man! different indutrie2 It

0ouldnt be 1oible for an in/etor to build thi 5ind of a 1ortfolio 0ith a mall amount of

mone!2 Small in/etor can 1artici1ate in larger ba5et of ecuritie and hare the benefit of

efficientl! managed 1ortfolio b! e61ert4 and are freed from maintaining record of com1an!

hare certificate4 and trac5ing ta6 rule2 Mutual fund in/etment are le ri5! due to 1ortfolio

di/erification4 0hich i 1oible mainl! due to large fund a/ailable at their di1oal2 Small

in/etor can ne/er 1read their ri5 acro uch a 0ide 1ortfolio4 a can mutual fund2

$ree0o5 6ro5 tra2i/g i/9e3t5e/t3 In/etor do not ha/e to trac5 their in/etment

regularl!4 a e61ert 0ho bu! and ell ecuritie for them do the trac5ing2 In/etor are onl!

re3uired to trac5 the 1erformance of the mutual fund2

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E2o/o5ie3 o6 S2a4e

Becaue a mutual fund bu! and ell large amount of ecuritie at a time4 it tranaction cot

are lo0er than !ou a an indi/idual 0ould 1a!2

Li:i0it;

:ut li5e an indi/idual toc54 a mutual fund allo0 !ou to re3uet that !our hare be con/erted

into cah at an! time2

Si54i2it;

Bu!ing a mutual fund i ea! Prett! 0ell an! ban5 ha it o0n line of mutual fund4 and the

minimum in/etment i mall2 Mot com1anie alo ha/e automatic 1urchae 1lan 0hereb! a

little a -(( can be in/eted on a monthl! bai2

$ree0o5 6ro5 tra2i/g i/9e3t5e/t3

In/etor do not ha/e to trac5 their in/etment regularl!4 a e61ert 0ho bu! and ell ecuritie

for them do the trac5ing2 In/etor are onl! re3uired to trac5 the 1erformance of the mutual fund2

Pro6e33io/a4 5a/age5e/t

Profeional run mutual fund4 0ith e61erience in 1ortfolio management2 Anal!t em1lo!ed

b! mutual fund anal!e data and information a/ailable in a manner that cannot be matched b!

the la! in/etor2

TaF 7e/e6it3

Income ta6 benefit are granted to in/etor in mutual fund4 ma5ing it more ta6 efficient a

com1ared to other com1arable in/etment a/enue2

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19/52

Di3a09a/tage3 o6 Mta4 $/03

Pro6e33io/a4 Ma/age5e/t, Did !ou notice ho0 0e 3ualified the ad/antage of 1rofeional

management 0ith the 0ord Ktheoreticall!K Man! in/etor debate o/er 0hether or not the o,

called professionals are an! better than !ou or I at 1ic5ing toc52 Management i b! no meaninfallible4 and4 e/en if the fund loe mone!4 the manager till ta5e hi?her cut2

Co3t3 , Mutual fund dont e6it olel! to ma5e !our life eaier,,all fund are in it for a 1rofit2

The mutual fund indutr! i materful at bur!ing cot under la!er of $argon2 Thee cot are o

com1licated that in thi tutorial 0e ha/e de/oted an entire ection to the ub$ect2

Di4tio/ , It 1oible to ha/e too much di/erification2 Becaue fund ha/e mallholding in

o man! different com1anie4 high return from a fe0 in/etment often dont ma5e much

difference on the o/erall return2 Dilution i alo the reult of a ucceful fund getting too big2

=hen mone! 1our into fund that ha/e had trong ucce4 the manager often ha trouble

finding a good in/etment for all the ne0 mone!2

TaFe3 , =hen ma5ing deciion about !our mone!4 fund manager dont conider !our 1eronal

ta6 ituation2 For e6am1le4 0hen a fund manager ell a ecurit!4 a ca1ital,gain ta6 i triggered4

0hich affect ho0 1rofitable the indi/idual i from the ale2 It might ha/e been more

ad/antageou for the indi/idual to defer the ca1ital gain liabilit!2

No tai4or-5a0e Port6o4io In/etor 0ho in/et on their o0n can build teir o0n 1ortfolio

hare4 bond and other ecuritie2 In/eting through fund mean he delegate thi deciion to

the fund manger2 "igh,net,0orth indi/idual or large cor1orate in/etor ma! find thi to be acontraint in achie/ing their ob$ecti/e2 "o0e/er4 mot mutual fund hel1 in/etor o/ercome

thi contraint b! offering familie of cheme,a large number of different cheme 0ithin the

ame fund2 In each cheme there are /ariou 1lan and o1tion2 An in/etor can chooe from

different in/etment cheme?1lan?o1tion and contruct an in/etment 1ortfolio that meet hi

in/etment ob$ecti/e2


20/52

Ma/agi/g a ort6o4io o6 6/03 A/ailabilit! of a large number of o1tion from mutual

fund can actuall! mean too much choice for the in/etor2 "e ma! again need ad/ice on ho0 to

elect a fund to achie/e hi ob$ecti/e4 3uite imilar to the ituation 0hen he ha to elect

indi/idual hare or bond to in/et in2 fortunatel!4 India no0 ha a large number of AMFI

regitered and teted fund ditributor and financial 1lanner 0ho are ca1able of guiding the

in/etor2

TYPES O$ RISKS

;onider thee common t!1e of ri5 and e/aluate them againt 1otential re0ard 0hen !ou

elect an in/etment2

Ma/agi/g Ri3

At time the 1rice or !ield of all the ecuritie in a 1articular mar5et rie or fall due to broad

outide influence2 =hen thi ha11en4 the toc5 1rice of both an outtanding4 highl! 1rofitable

com1an! and a fledgling cor1oration ma! be affected2 Thi change in 1rice i due to Kmar5et

ri5K2

I/64atio/ Ri3

Sometime referred to a Klo of 1urchaing 1o0er2K =hene/er inflation 1rint for0ard fater

than the earning on !our in/etment4 !ou run the ri5 that !oull actuall! be able to bu! le4 not

more2 Inflation ri5 alo occur 0hen 1rice rie fater than !our return2 ;hanging interet rate

affect both e3uitie and bond in man! 0a!2 In/etor are reminded that K1redictingK 0hich 0a!

rate 0ill go i rarel! ucceful2 A di/erified 1ortfolio can hel1 in offetting thee change2

Cre0it Ri3

In hort4 ho0 table i the com1an! or entit! to 0hich !ou lend !our mone! 0hen !ou in/et

"o0 certain are !ou that it 0ill be able to 1a! the interet !ou are 1romied4 or re1a! !our

1rinci1al 0hen the in/etment mature


21/52

E66e2t o6 Lo33 o6 Ke; Pro6e33io/a4

An indutrie 5e! aet i often the 1eronnel 0ho run the buine i2e2 intellectual 1ro1ertie of

the 5e! em1lo!ee of the re1ecti/e com1anie2 8i/en the e/er,changing com1le6ion of fe0

indutrie and the high obolecence le/el4 a/ailabilit! of 3ualified4 trained and moti/ated

1eronnel i /er! critical for the ucce of indutrie in fe0 ector2 It i4 therefore4 necear! to

attract 5e! 1eronnel and alo to retain them to meet the changing en/ironment and challenge

the ector offer2

Failure or inabilit! to attract?retain uch 3ualified 5e! 1eronnel ma! im1act the 1ro1ect of the

com1anie in the 1articular ector in 0hich the fund in/et2

EF2ha/ge Ri3

A number of com1anie generate re/enue in foreign currencie and ma! ha/e in/etment or

e61ene alo denominated in foreign currencie2 ;hange in e6change rate ma!4 therefore4 ha/e

a 1oiti/e or negati/e im1act on com1anie 0hich in turn 0ould ha/e an effect on the in/etment

of the fund2

I/79e3t5e/t Ri3

The ectoral fund cheme4 in/etment 0ill be 1redominantl! in e3uitie of elect com1anie in

the 1articular ector2 Accordingl!4 the NA< of the cheme are lin5ed to the e3uit! 1erformance

of uch com1anie and ma! be more /olatile than a more di/erified 1ortfolio of e3uitie2

Cha/ge3 I/ The Go9er/5e/t o4i2;;hange in 8o/ernment 1olic! e1eciall! in regard to the ta6 benefit ma! im1act the buine

1ro1ect of the com1anie leading to an im1act on the in/etment made b! the


22/52

MA#OR PLAYERS IN THE INDIAN MTAL $ND INDSTRY

Morga/ Sta/4e; A33et Ma/age5e/t =I> P9t. Lt0.

Morgan Stanle! Dean =itter ;o2 i a 1reeminent global financial er/ice firm that 1ro/ide a

0ide range of er/ice to ma$or cor1oration4 go/ernment4 financial intitution and high,net,

0orth indi/idual 0orld0ide2 =ith a11ro6imatel! )(4((( em1lo!ee in +@ countrie4 the Firm

ha a ignificant 1reence in e/er! financial mar5et2 Morgan Stanle! Dean =itter %MSD=.

In/etment Management i the intitutional aet management di/iion of MSD= ;o2 MSD=In/etment Management 0a etablihed in -*9) to hel1 go/ernment4 cor1oration4 1enion

fund and non,1rofit organiation meet their long,term in/etment ob$ecti/e2 MSD=

In/etment Management manage US >C) billion for intitutional and indi/idual in/etor2

MSD= In/etment Management manage three ma$or offhore India fund4 the India Magnum

Fund %traded on the Dublin Stoc5 76change.4 the India In/etment A8 %lited on the urich

Stoc5 76change. and the India In/etment Fund %traded on the Ne0 Yor5 Stoc5 76change.2

The Morgan Stanle! 8ro0th Fund 0a launched in :anuar! -**@ and garnered an initial cor1u

of &2 *C- crore2 MS8F i lited on the Mumbai4 Delhi4 ;alcutta4 ;hennai and Ahmedabad

Stoc5 76change and i alo traded on the National Stoc5 76change2 In -**94 MS8F unit 0ere

1laced a eligible ecuritie 0ith the National Securitie De1oitor! Limited4 0hich made it

1oible for unit holder to hold unit in electronic?dematerialied form2

DSP Meri44 L;/2h I/9e3t5e/t Ma/ager3


23/52

DSP Merrill L!nch Aet Management %India. Ltd24 %a com1an! regitered under the ;om1anie

Act4 -*). ha been et u1 b! DSPML and MLAM4 to act a the Aet Management ;om1an!

%AM;. to the Fund2 The AM; ha been a11ointed a the In/etment Manager to the fund4

MLAM hold @(J of the 1aid u1 hare ca1ital of the AM;4 0hile the balance (J

%a11ro6imatel!.4 i held b! DSPML2 The In/etment Manager 0a a11ro/ed b! S7BI to act a

the AM; for the Mutual Fund2

Merrill L!nch In/etment Manager in/etment 1hiloo1h! i deigned to ee5 conitent4 long,

term trategic 1erformance reult2 It dici1lined /alue oriented a11roach to managing it

clientE 1ortfolio ha been 0ith the 1rimar! ob$ecti/e of ee5ing conitent return o/er a long

1eriod2

,ir4a S/4i6e A33et Ma/age5e/t Co5a/; Lt0

Birla Sun Life AM; Ltd2 i a $oint /enture bet0een Sun Life Aurance ;om1an! of ;anada and

the Adit!a Birla 8rou14 one of Indian leading Indutrial houe2

Sun Life Aurance ;om1an! of ;anada i a leading financial er/ice organiation4 1ro/iding adi/erified range of ri5 management4 0ealth management and mone! management 1roduct for

indi/idual and cor1oration 0orld0ide2 Sun Life commenced buine in ;anada in -C9-4 and

i head3uartered in Toronto 0ith ma$or o1eration in ;anada4 United State4 United #ingdom

and Aia Pacific2 Sun Life ha conitentl! earned rating that ran5 among the bet in the North

American financial er/ice ector2 It ha a ma$or 1reence in the gro0ing mutual fund mar5et


24/52

through MFS In/etment Management in the U2S24 and through S1ectrum United Mutual Fund

in ;anada2 It i alo acti/e in the unit trut buine in the U2#24 and it near term 1lan include

conideration of mutual fund offering in the Phili11ine2

The Adit!a Birla grou1 i a multinational grou1 coniting of the bet 5no0n com1anie in India

in a range of 5e! ector li5e Te6tile %8&ASIM.4 &a!on %Indian &a!on.4 Aluminum

%"INDAL;O.4 Petroleum %M&PL.4 Finance %B8FL.4 Fertilier %Indo,8ulf.2 Birla Mutual Fund

offer in/etment Scheme 0hich aim to cater to e/er! need of the in/etor2 Dra0ing on the

e61ertie of a 0orld0ide taff of o/er -(4((( 1eo1le and a net0or5 of more than )4((( agent

and ditributor4 Sun Life i committed to 1ro/iding not $ut 1roduct and er/ice4 but olution

for client financial and ri5 management need2

Kothari Pio/eer A33et Ma/age5e/t Co5a/; Lt0.

#othari Pioneer Mutual Fund i 1onored b! the In/etment Trut of India Ltd2 of the " ;

#othari 8rou1 and Pioneer In/etment Management Inc2%PIM. of The Pioneer 8rou1 Inc24USA2

#othari Pioneer i one of India firt mutual fund in the 1ri/ate ector2 Toda!4 it manage

&2+9(( crore in aet for o/er )(4((( in/etor acro a range of gro0th4 balanced4 income4

li3uid and ta6 a/ing fund2

The 1onor of the fund are Pioneer In/etment Management %PIM.4 USA and the In/etment

Trut of India4 0ho together bring more than -+( !ear of e61erience in financial er/ice2 PIM

currentl! manage o/er +@ billion in aet 0orld0ide on behalf of indi/idual and intitutional

in/etor2 Baed in Boton4 Pioneer ha financial er/ice o1eration in 8erman!4 Ireland4

Poland4 ;ech &e1ublic4 India and &uia2 It flaghi1 fund4 Pioneer Fund4 0a founded in -*+Cand i the fourth oldet mutual fund in the United State2


25/52

S/ $ C A33et Ma/age5e/t =I/0ia> P9t. Lt0.

SUN F; Aet Management %India. P/t2 Ltd2 i an e3ual $oint /enture bet0een Foreign

;olonial 7merging Mar5et Ltd2 U2#2 and SUN Securitie %India. P/t2 Ltd2 Foreign ;olonial4

etablihed in -CC4 i one of 7uro1e leading aet management grou12 F; i a 1art of "!1o

Ban54 one of 8erman! oldet and larget ban5 and ha been in/eting in the Indian toc5

mar5et ince -**>2 SSIL i an Indian ubidiar! com1an! of Sun 8rou12 It acti/itie conit of

1rinci1al in/etment and in/etment management o1eration in emerging mar5et and

technologie a 0ell a international commercial acti/itie2

SUN F; currentl! manage and ad/ie India Performance Fund %an offhore fund.4 SUN F;


26/52

NIT TRST O$ INDIA

7/er! !ear4 million of Indian entrut their a/ing to Unit Trut of India to build u1 a

financiall! ecure future2 Thi faith and confidence of in/etor tem from UTI commitment4 a

reflected in it long trac5 record to enure it in/etor4 afet!4 li3uidit! and attracti/e !ield on

their in/etment2

Set u1 in -*@4 b! an Act of Parliament4 UTI Act -*>4 UTI ha gro0n into one of the bigget

1la!er and car/ed out a 1ecial 1oition in the Indian ca1ital mar5et2

Toda!4 UTI manage an aggregate 1ortfolio of &2 9+4*C ;rore a on >-?-+?-*** and er/ice@) million in/etor account under *( a/ing cheme catering to /ar!ing need of different

clae of in/etor2

UTI ha a er/icing and ditribution net0or5 of )> branch office4 >+( Ditrict &e1reentati/e

and about C94((( agent2 It 1ro/ide a com1lete range of er/ice to it in/etor4 at a lo0 gro

cot of le than -2(- 1ercent of in/iible fund and doe not charge an! aet management fee2

UTI i a !mbol of trut and confidence among Indian in/etor2 In the lat e/en !ear4 the

number of cheme managed b! UTI increaed from >) to *+4 0hile the number of unit holding

account recorded a e/enfold increae from ) la5h to o/er @)( la5h2

http://var/www/apps/conversion/tmp/scratch_2/overview3.htm%23mfihttp://var/www/apps/conversion/tmp/scratch_2/overview3.htm%23mfihttp://var/www/apps/conversion/tmp/scratch_2/overview3.htm%23mfihttp://var/www/apps/conversion/tmp/scratch_2/overview3.htm%23mfi


27/52

UTI e61anding 1roduct range co/er a broad 1ectrum of in/etment goal and include o1en

end and cloed,end income and ca1ital accumulation fund2 Among the mot 1o1ular are Unit

Scheme -*@ and Mater erie e3uit! cheme uch a Materhare4 Mater1lu4 Mater 73uit!

Plan4 etc2

UTI alo manage cheme aimed at meeting 1ecific need li5e

♦ Lo0 cot inurance co/er %ULIP.

♦ Monthl! income need of retired 1eron and 0omen2

♦ Income and li3uidit! need of religiou and charitable intitution and trut2

♦ Building u1 fund to meet cot of higher education and career 1lan for children2

♦ Future 0ealth and income need of girl child and 0omen2

♦ Building a/ing to co/er medical inurance at old age2

♦ =ealth accumulation to meet income need after retirement2

Indi/idual houehold in/etor account for **J of UTI in/etor account and about )J of

unit ca1ital of UTI cheme2 Product are ditributed through a mar5eting force of about C94(((

commiion,baed can/aing agent trained to e61lain the 1roduct and 1ro/ide related er/ice

u11ort to in/etor2

Toda!4 thee agent are u1er/ied b! >+( ;hief &e1reentati/e 0ho guide the in/etor4

organie4 train and moti/ate the agent in their re1ecti/e area of o1eration %1ecified ditrict.

In/etor under /ariou cheme of UTI are no0 er/iced through )> UTI branche4 +->

collection center and office of &egitrar and Tranfer Agencie a11ointed b! UTI2 Beide

there are )+ franchie office4 0hich

acce1t a11lication and ditribute certificate to unit holder2 UTI ha et u1 it o0n aociate

com1an!4 UTI,In/etor Ser/ice Limited %UTIISL.4 to meet the gro0ing need of unit holder

er/icing2


28/52

UTI i alo currentl! im1lementing a technolog! u1gradation 1rogram4 in/ol/ing net0or5ing of

on,line com1uter !tem at UTI office4 and office of &egitrar and Tranfer Agencie2 Thi

0ould enable UTI to im1ro/e er/ice 3ualit! ignificantl!2

UTI 1ublihe 0ee5l!?dail! NA)4((92C> crore at boo5

/alue2 It /ariou fund collecti/el! hold toc5 in more than -)(( Indian com1anie and account

for o/er C 1ercent of the mar5et ca1italiation of all lited cri1t on the Bomba! Stoc5

76change2

Cororate 0e7t

UTI i one of the main 1ro/ider of debt finance to the cor1orate ector2 In/etment in cor1orate

debt intrument account for >C 1ercent of the total in/etible fund2 ;redit mar5et o1eration

co/er a range of intrument including 1ublicl! iued and 1ri/atel! 1laced debenture4 bond

and medium term note2 UTI debt 1ortfolio 3ualit! i re1reented b! *C 1ercent 1erforming

aet2

HD$C AMC =ASSET MANAGEMENT COMPANY>

"DF; Aet Management ;om1an! Ltd %AM;. 0a incor1orated under the ;om1anie Act4

-*)4 on December -(4 -***4 and 0a a11ro/ed to act a an Aet Management ;om1an! for the

"DF; Mutual Fund b! S7BI 0ide 0ith it letter dated >(th $une +(((2


29/52

The regitered office of the AM; i ituated at &amon "oue4 >rd Floor4 "2T2 Pare5h Marg4 -*4

Bac5ba! &eclamation4 ;hurchgate4 Mumbai Q @(( (+(

In term of the In/etment Management Agreement4 the Trutee ha a11ointed the AM; to

manage the mutual fund2

A 1er the term of the In/etment Management Agreement4 the AM; 0ill conduct the

o1eration of the Mutual Fund and manage aet of the cheme4 including the cheme

launched from time to time

The ingle mot im1ortant factor that dri/e "DF; Mutual Fund i it belief to gi/e the in/etor

the chance to 1rofitabl! in/et in the financial mar5et4 0ithout contantl! 0orr!ing about the

mar5et 0ing2 To realie thi belief4 "DF; Mutual Fund ha et u1 the infratructure re3uired to

conduct all the fundamental reearch and bac5 it u1 0ith effecti/e anal!i2 Our trong em1hai

on managing and controlling 1ortfolio ri5 a/oid chaing the latet fad and trend2

"DF; Aet Management ;om1an! %AM;. i the firt AM; in India to ha/e been aigned the

R;&ISIL Fund "oue Le/el Q -E rating2 Thi i it highet Fund 8o/ernance and Proce ualit!

&ating 0hich reflect the highet go/ernance le/el and fund management 1ractice at "DF;

AM; It i the onl! fund houe to ha/e been aigned thi rating for t0o !ear in ucceion2

O/er the 1at4 0e ha/e 0on a number of a0ard and accolade for our 1erformance2

The AM; i managing +@ o1en,ended cheme of the Mutual Fund /i2 "DF; 8ro0th Fund

%"8F.4 "DF; Balanced Fund %"BF.4 "DF; Income Fund %"IF.4 "DF; Li3uid Fund %"LF.4

"DF; Long Term Ad/antage Fund %"LTAF.4 "DF; ;hildren 8ift Fund %"DF; ;8F.4

"DF; 8ilt Fund %"8ILT.4 "DF; Short Term Plan %"STP.4 "DF; Inde6 Fund4 "DF;

Floating &ate Income Fund %"F&IF.4 "DF; 73uit! Fund %"7F.4 "DF; To1 +(( Fund

%"T+((.4 "DF; ;a1ital Builder Fund %";BF.4 "DF; Ta6Sa/er %"TS.4 "DF; Prudence

Fund %"PF.4 "DF; "igh Interet Fund %""IF.4 "DF; ;ah Management Fund %";MF.4

"DF; MF Monthl! Income Plan %"MIP.4 "DF; ;ore Satellite Fund %";SF.4 "DF;

Multi1le Yield Fund %"MYF.4 "DF; Premier Multi,;a1 Fund %"PM;F.4 "DF; Multi1le

Yield Fund 2 Plan +(() %"MYF,Plan +(().4 "DF; uarterl! Inter/al Fund %"IF. and "DF;

Arbitrage Fund2


30/52

The AM; i alo managing C cloed ended Scheme of the "DF; Mutual Fund /i2 "DF;

Long Term 73uit! Fund4 "DF; Mid,;a1 O11ortunitie Fund4 "DF; Fi6ed Maturit! Plan4

"DF; Fi6ed Maturit! Plan , Serie II4 "DF; Fi6ed Maturit! Plan , Serie III4 "DF; Fi6ed

Maturit! Plan , Serie I


31/52

REGLATORY ASPECT O$ A MTAL $ND

• S2he5e3 o6 a Mta4 $/0

The aet management com1an! hall launch no cheme unle the trutee a11ro/e uch

cheme and a co1! of the offer document ha been filed 0ith the Board2

7/er! mutual fund hall along 0ith the offer document of each cheme 1a! filing fee2

The offer document hall contain dicloure 0hich are ade3uate in order to enable the

in/etor to ma5e informed in/etment deciion including the dicloure on ma6imum

in/etment 1ro1oed to be made b! the cheme in the lited ecuritie of the grou1

com1anie of the 1onor

The mutual fund and aet Management ;om1an! hall be liable to refund the

a11lication mone! to the a11licant

If the mutual fund fail to recei/e the minimum ubcri1tion amount referred to in claue

%a. of ub,regulation %-.

If the mone! recei/ed from the a11licant for unit are in e6ce of ubcri1tion areferred to in claue %b. of ub,regulation %-.2

The aet management com1an! hall iue to the a11licant 0hoe a11lication ha been

acce1ted4 unit certificate or a tatement of account 1ecif!ing the number of unit

allotted to the a11licant a oon a 1oible but not later than i6 0ee5 from the date of

cloure of the initial ubcri1tion lit and or from the date of recei1t of the re3uet from

the unit holder in an! o1en ended cheme2

• R4e3 Regar0i/g A09erti3e5e/t


32/52

The offer document and ad/ertiement material hall not be mileading or contain an!

tatement or o1inion4 0hich are incorrect or fale2

In/etment Ob$ecti/e and


33/52

• Re3tri2tio/3 o/ I/9e3t5e/t3

A mutual fund cheme hall not in/et more than -)J of it NA< in debt intrument

iued b! a ingle iuer4 0hich are rated not belo0 in/etment grade b! a credit ratingagenc! authoried to carr! out uch acti/it! under the Act2 Such in/etment limit ma! be

e6tended to +(J of the NA< of the cheme 0ith the 1rior a11ro/al of the Board of

Trutee and the Board of aet Management ;om1an!2

A mutual fund cheme hall not in/et more than -(J of it NA< in an rated debt

intrument iued b! a ingle iuer and the total in/etment in uch intrument hall

not e6ceed +)J of the NA< of the cheme2 All uch in/etment hall be made 0ith the

1rior a11ro/al of the Board of Trutee and the Board of aet Management ;om1an!2

No mutual fund under all it cheme hould o0n more than ten 1er cent of an!

com1an! 1aid u1 ca1ital carr!ing /oting right2

Such tranfer are done at the 1re/ailing mar5et 1rice for 3uoted intrument on 1ot

bai2

The ecuritie o tranferred hall be in conformit! 0ith the in/etment ob$ecti/e of the

cheme to 0hich uch tranfer ha been made2

A cheme ma! in/et in another cheme under the ame aet management com1an! or

an! other mutual fund 0ithout charging an! fee4 1ro/ided that aggregate inter cheme

in/etment made b! all cheme under the ame management or in cheme under the

management of an! other aet management com1an! hall not e6ceed )J of the net

aet /alue of the mutual fund2

The initial iue e61ene in re1ect of an! cheme ma! not e6ceed i6 1er cent of the

fund raied under that cheme2

7/er! mutual fund hall bu! and ell ecuritie on the bai of deli/erie and hall in all

cae of 1urchae4 ta5e deli/er! of relati/e ecuritie and in all cae of ale4 deli/er the

ecuritie and hall in no cae 1ut itelf in a 1oition 0hereb!

it ha to ma5e hort ale or carr! for0ard tranaction or engage in badla finance2


34/52

7/er! mutual fund hall4 get the ecuritie 1urchaed or tranferred in the name of the

mutual fund on account of the concerned cheme4 0here/er in/etment are intended to

be of long,term nature2

Pending de1lo!ment of fund of a cheme in ecuritie in term of in/etment ob$ecti/e

of the cheme a mutual fund can in/et the fund of the cheme in hort term de1oit of

cheduled commercial ban52

No mutual fund cheme hall ma5e an! in/etment in

An! unlited ecurit! of an aociate or grou1 com1an! of the 1onor or

An! ecurit! iued b! 0a! of 1ri/ate 1lacement b! an aociate or grou1 com1an! of the

1onor or

The lited ecuritie of grou1 com1anie of the 1onor 0hich i in e6ce of >(J of the

net aet of all the cheme of a mutual fund2

No mutual fund cheme hall in/et more than -( 1er cent of it NA< in the e3uit! hare

or e3uit! related intrument of an! com1an!2 Pro/ided that4 the limit of -( 1er cent hall

not be a11licable for in/etment in inde6 fund or ector or indutr! 1ecific cheme2

A mutual fund cheme hall not in/et more than )J of it NA< in the e3uit! hare or

e3uit! related in/etment in cae of o1en,ended cheme and -(J of it NA< in cae of

cloe,ended cheme2


35/52

Chater-IIIRe3ear2h De3ig/

Metho0o4og;


36/52

Re3ear2h Metho0o4og;

Thi 1ro$ect tarted b! meeting different 1eo1le in order to get information about the

mutual fund2 Then I thoroughl! e6amined the /ariou acti/itie of mutual fund2

Then I /iited /ariou 0ebite of the mutual fund to 5no0 the recent and u1coming

trend of mutual fund2

I 0ent for0ard collecting the data of Mutual Fund through different 0eb ite2

I ha/e 5ee1 a trac5 on the return gi/en b! different mutual fund and alo calculatedthe Sene6 return of lat t0o !ear i2e from #a/ar; ?+1+


37/52

$4o@ Chart

Meeting different 1eo1le in order to get information about themutual fund2

On the bai of anal!i dra0 concluion2

Anal!e different Mutual fund b! uing different method eg,Beta 4Al1ha /alue etc2

;alculate return of Mutual fund and Sene6 from#a/ar; ?+1+


38/52

Chater - I DataCo44e2tio/ a/0

A/a4;3i3


39/52

Too43 a/0 Te2h/i:e3

Share Ratio

The Shar1e ratio tell u 0hether a 1ortfolio return are due to mart in/etment deciion or areult of e6ce ri52 Thi meaurement i /er! ueful becaue although one 1ortfolio or fund can

rea1 higher return than it 1eer4 it i onl! a good in/etment if thoe higher return do not come0ith too much additional ri52 The greater a 1ortfolio Shar1e ratio4 the better it ri5,ad$uted 1erformance ha been2 A negati/e Shar1e ratio indicate that a ri5,le aet 0ould 1erform better than the ecurit! being anal!ed2

,eta Ra4eBeta i calculated uing regreion anal!i4 and !ou can thin5 of beta a the tendenc! of aecurit! return to re1ond to 0ing in the mar5et2 A beta of - indicate that the ecurit! 1rice0ill mo/e 0ith the mar5et2 A beta of le than - mean that the ecurit! 0ill be le /olatile thanthe mar5et2 A beta of greater than - indicate that the ecurit! 1rice 0ill be more /olatile than

the mar5et2 For e6am1le4 if a toc5 beta i -2+4 it theoreticall! +(J more /olatile than themar5et2

Man! utilitie toc5 ha/e a beta of le than -2 ;on/erel!4 mot high,tech Nada3,baed toc5ha/e a beta of greater than -4 offering the 1oibilit! of a higher rate of return4 but alo 1oing more ri52

Tre;/or Ratio


40/52

the Tre;/or ratio i3 a ri3-a083te0 5ea3re o6 retr/ 7a3e0 o/ 3;3te5ati2 ri3. It i3 3i5i4ar

to the Share ratio @ith the 0i66ere/2e 7ei/g that the Tre;/or ratio 3e3 7eta a3 the

5ea3re5e/t o6 9o4ati4it;.

A43o /o@/ a3 the Jre@ar0-to-9o4ati4it; ratioJ

Tra2i/g Error

Trac5ing error are re1orted a a Ktandard de/iation 1ercentageK difference2 Thi meaurere1ort the difference bet0een the return an in/etor recei/e and that of the benchmar5 he or he0a attem1ting to imitate2

Sta/0ar0 De9iatio/Standard de/iation i a tatitical meaurement that hed light on hitorical /olatilit!2 Fore6am1le4 a /olatile toc5 0ill ha/e a high tandard de/iation 0hile the de/iation of a table blue

chi1 toc5 0ill be lo0er2 A large di1erion tell u ho0 much the return on the fund i de/iatingfrom the e61ected normal return2

A4ha a4e

Al1ha of an! financial ecurit! indicate the minimum le/el of return 0hich an in/etor cane61ect from that ecurit!2

The income loo5ing in/etor can in/et in the toc5 0ith high al1ha /alue2

A/a4;3i3 o6 Mta4 6/03

ICICI Pr0e/tia4 I/6ra3tr2tre $/0 - Retai4 P4a/ =G>

$/0 S/a3hot

Structure O1en 7nded 73uit! fund

Fund Manager San5aran Naren

Fund Ob$ecti/e To 1ro/ide ca1ital a11reciation and income

ditribution to unit holder b! in/eting


41/52

1redominantl! in e3uit!?e3uit! related ecuritie of

the com1anie belonging to infratructure

de/elo1ment and the balance in debt ecuritie and

mone! mar5et intrument including call mone!2

Ince1tion Date -th Aug4 +(()

Fund Sie &2 -49--2C- ;rore

Face (th A1ril4 +((9. 8ro0th o1tion ' &2 -*2-*

Di/idend o1tion ' &2 -@2*-

Minimum In/etment &2 )(((

761ene &atio -2*>J

Benchmar5 SP ;N Nift!

A33et Sie =R3 2r>

+4(*-2+( %Dec,>(,+(--.

htt1'??0002mone!control2com?mutual,fund?na/?icici,1rudential,infratructure,fund,retail, 1lan?return,calculator,MPI-(C2html

TI I/6ra3tr2tre $/0

$/0 S/a3hot


Fund Manager San$a! Dongre

Fund Ob$ecti/e To 1ro/ide ;a1ital a11reciation through in/eting in

the toc5 of the com1anie engaged in the ector

li5e Metal4 Building material4 oil and ga4 1o0er4

http://www.moneycontrol.com/mutual-funds/nav/icici-prudential-infrastructure-fund-retail-plan/returns-calculator-MPI108.htmlhttp://www.moneycontrol.com/mutual-funds/nav/icici-prudential-infrastructure-fund-retail-plan/returns-calculator-MPI108.htmlhttp://www.moneycontrol.com/mutual-funds/nav/icici-prudential-infrastructure-fund-retail-plan/returns-calculator-MPI108.htmlhttp://www.moneycontrol.com/mutual-funds/nav/icici-prudential-infrastructure-fund-retail-plan/returns-calculator-MPI108.html


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chemical4 engineering etc2 The fund 0ill in/et in

the toc5 of the com1anie 0hich form 1art of

Infratructure Indutrie2

Ince1tion Date 9th a1ril4 +((@

Fund Sie &2 C-+2-* ;rore

Face (th March4 +((9. 8ro0th o1tion ' &2 +)2**

Di/idend o1tion ' &2 -C2**


Benchmar5 BS7 -((

A33et Sie =R3 2r> +4(@)2C( %Dec,>(,+(--.

htt1'??0002mone!control2com?mutual,fund?na/?uti,infratructure,fund?return,calculator,MUT()2html

DSP ,4a2Ro2 I/0ia T.I.G.E.R. $/0 - Reg4ar P4a/ =G>

$/0 S/a3hot


Fund Manager Soumendra Nath Lahiri

Fund Ob$ecti/e An o1en ended di/erified e3uit! Scheme4 ee5ing to

generate ca1ital a11reciation4 from a 1ortfolio that i

ubtantiall! contituted of e3uit! ecuritie and e3uit!

related ecuritie of cor1orate4 0hich could benefit

from tructural change brought about b! continuing

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43/52

liberaliation in economic 1olicie b! the 8o/ernment

and?or from continuing in/etment in infratructure4

both b! the 1ublic and 1ri/ate ector

Ince1tion Date +)th Ma!4 +((@

Face (th A1ril4 +((9. 8ro0th , &2 >@2-+@(

Di/idend , &2 -*2>--


Benchmar5 BS7 -((

A33et Sie =R3 2r>

-4>92(( %Dec,>(,+(--.

htt1'??0002mone!control2com?mutual,fund?na/?d1,blac5roc5,india,t,i,g,e,r,fund,regular, 1lan?return,calculator,MDS(>*2html

Ca/ara Ro7e2o I/6ra3tr2tre =G>

$/0 S/a3hot


Fund Manager Umeh #amath

Fund Ob$ecti/e To generate income ? ca1ital a11reciation b! in/eting

in e3uitie and e3uit! related intrument of com1anie

in the infratructure ector2

Ince1tion Date *th no/ember4 +(()

http://www.moneycontrol.com/mutual-funds/nav/dsp-blackrock-india-t-i-g-e-r-fund-regular-plan/returns-calculator-MDS039.htmlhttp://www.moneycontrol.com/mutual-funds/nav/dsp-blackrock-india-t-i-g-e-r-fund-regular-plan/returns-calculator-MDS039.htmlhttp://www.moneycontrol.com/mutual-funds/nav/dsp-blackrock-india-t-i-g-e-r-fund-regular-plan/returns-calculator-MDS039.htmlhttp://www.moneycontrol.com/mutual-funds/nav/dsp-blackrock-india-t-i-g-e-r-fund-regular-plan/returns-calculator-MDS039.html


44/52

Face (th A1ril4 +((9. 8ro0th , &2 -)2()

Di/idend , &2 -+2C


Benchmar5 BS7 -((

A33et Sie =R3 2r>

--*29( %Dec,>(,+(--.

htt1'??0002mone!control2com?mutual,fund?na/?canara,robeco,infratructure?return,calculator,

M;A(@(2html

,ir4a S/ Li6e Ne@ Mi44e//i5 =G>

$/0 S/a3hot


Fund Manager Atul Pan5ar

Fund Ob$ecti/eA multi,ector o1en,ended gro0th cheme 0ith theob$ecti/e of long term gro0th of ca1ital4 through a 1ortfolio 0ith a target allocation of -((Je3uit!4focuing on in/eting in technolog! andtechnolog! de1endent com1anie hard0are 1eri1heraland com1onent4 oft0are4 telecom4 media4 internet ande,commerce and other technolog! enabled com1anieThe econdar! ob$ecti/e i income generation andditribution of di/idend2

Ince1tion Date -)th :anuar!4 +(((

Face (th A1ril4 +((9. 8ro0th , &

http://www.moneycontrol.com/mutual-funds/nav/canara-robeco-infrastructure/returns-calculator-MCA040.htmlhttp://www.moneycontrol.com/mutual-funds/nav/canara-robeco-infrastructure/returns-calculator-MCA040.htmlhttp://www.moneycontrol.com/mutual-funds/nav/canara-robeco-infrastructure/returns-calculator-MCA040.htmlhttp://www.moneycontrol.com/mutual-funds/nav/canara-robeco-infrastructure/returns-calculator-MCA040.html


45/52

Di/idend , &2


Benchmar5 BS7 T7;#

A33et Sie =R3 2r>

@C2C( %Dec,>(,+(--.

htt1'??0002mone!control2com?mutual,fund?na/?birla,un,life,ne0,millennium?return,calculator,MA;(+)2html

HD$C Gro@th $/0 =G>

$/0 S/a3hot


Fund Manager Srini/a &ao &a/uri

Fund Ob$ecti/eTo generate long term ca1ital a11reciation from a

1ortfolio that i in/eted 1redominantl! in e3uit! ande3uit! related intrument

Ince1tion Date --th Se1tember4 +(((


Di/idend , &2


Benchmar5 BS7 S7NS7

A33et Sie =R3 2r>

-4++C2>( %Dec,>(,+(--.

http://www.moneycontrol.com/mutual-funds/nav/birla-sun-life-new-millennium/returns-calculator-MAC025.htmlhttp://www.moneycontrol.com/mutual-funds/nav/birla-sun-life-new-millennium/returns-calculator-MAC025.htmlhttp://www.moneycontrol.com/mutual-funds/nav/birla-sun-life-new-millennium/returns-calculator-MAC025.htmlhttp://www.moneycontrol.com/mutual-funds/nav/birla-sun-life-new-millennium/returns-calculator-MAC025.html


46/52

htt1'??0002mone!control2com?mutual,fund?na/?hdfc,gro0th,fund?return,calculator,M"D((-2html

ID$C E:it; $/0 - P4a/ A =G>

$/0 S/a3hot


Fund Manager #enneth Andrade

Fund Ob$ecti/e

The in/etment ob$ecti/e of the cheme i to ee5 to

generate ca1ital gro0th from a 1ortfolio of 1redominantl! e3uit! and e3uit! related

intrument%Including 73uit! deri/ati/e. The chemema! alo in/et in debt and mone! mar5et intrument

to generate reaonable income2

Ince1tion Date -th Ma!4 +((


Di/idend , &2


Benchmar5 BS7 )((

A33et Sie =R3 2r>

>C2*( %Dec,>(,+(--.

htt1'??0002mone!control2com?mutual,fund?na/?idfc,e3uit!,fund,1lan,a?return,calculator,MA8-(2html

#PMorga/ I/0ia E:it; $/0 =G>

http://www.moneycontrol.com/mutual-funds/nav/hdfc-growth-fund/returns-calculator-MHD001.htmlhttp://www.moneycontrol.com/mutual-funds/nav/hdfc-growth-fund/returns-calculator-MHD001.htmlhttp://www.moneycontrol.com/mutual-funds/nav/idfc-equity-fund-plan-a/returns-calculator-MAG106.htmlhttp://www.moneycontrol.com/mutual-funds/nav/idfc-equity-fund-plan-a/returns-calculator-MAG106.htmlhttp://www.moneycontrol.com/mutual-funds/nav/hdfc-growth-fund/returns-calculator-MHD001.htmlhttp://www.moneycontrol.com/mutual-funds/nav/hdfc-growth-fund/returns-calculator-MHD001.htmlhttp://www.moneycontrol.com/mutual-funds/nav/idfc-equity-fund-plan-a/returns-calculator-MAG106.htmlhttp://www.moneycontrol.com/mutual-funds/nav/idfc-equity-fund-plan-a/returns-calculator-MAG106.html


47/52

$/0 S/a3hot


Fund Manager "arhad Pat0ardhan

Fund Ob$ecti/eThe in/etment ob$ecti/e of the Scheme i to generate

income and long,term ca1ital gro0th from a di/erified 1ortfolio of 1redominantl! e3uit! and e3uit!,related

ecuritie including e3uit! deri/ati/e2

Ince1tion Date -*th A1ril 4 +((9

Fund Sie &2


Di/idend , &2


Benchmar5 BS7+((

A33et Sie =R3 2r>

>-*2( %Dec,>(,+(--.

htt1'??0002mone!control2com?mutual,fund?na/?$1morgan,india,e3uit!,fund?return,calculator,M:P((-2html

http://www.moneycontrol.com/mutual-funds/nav/jpmorgan-india-equity-fund/returns-calculator-MJP001.htmlhttp://www.moneycontrol.com/mutual-funds/nav/jpmorgan-india-equity-fund/returns-calculator-MJP001.htmlhttp://www.moneycontrol.com/mutual-funds/nav/jpmorgan-india-equity-fund/returns-calculator-MJP001.htmlhttp://www.moneycontrol.com/mutual-funds/nav/jpmorgan-india-equity-fund/returns-calculator-MJP001.html


48/52

ANALYSIS O$ DI$$ERENT MTAL $NDS

SENSE

X

OPENI

NG

SENSE

X

CLOSI

NG

SENSEX

RETRN

=>

ICICI

IN$RA

=>

TI

IN$RA

=>

DSP => CANARA

=>

#a/ar;-

?+1+

-9>)2>9

->)92*

,)2C(-+)C@C ,)2+ ,)2 ,@2- ,@2)

$e7rar;-

?+1+

->>*2>+

-+)@2+ ,(2)+(*)-*- ,-2) ,+2( ,-2C ,>2-

Mar2h-?+1+ -+))2>> -9)+9299 92C+9C>+@9- )2+ >2> @29 2C

Ari4 -?+1+ -9)))2(@

-9)(>2@9

,(2+*>9-9* (2* ,(2@ +2( +2@

Ma; - ?+1+ -9)>2C

-2@ ,@2*>(+>C ,>2C ,>2 ,+2) ,-2@

#/e < ?+1+ -*@+2C+

-9)>@2(*

>2@C*9*C)C )2( 2* 29 )2-

#4; - ?+1+ -99*2>@

-9**+2((

-29C)(@*>> @2- ,(2> +2( (2

Age3t-?+1+ -9*--2>

-

-C(>+2-

-

(29@@>@-*C ,-2@ ,-2+ +2( +2(

Sete57er-

?+1+

-C+-)2+C

-**)2>@

*2))C+>*(-9 2@ )2C )2+ @29

O2to7er-

?+1+

+((*@2--

-**@-2(@

,(29-9))- ,+2* ,+2- ,-2 ,>2-

No9e57er-

?+1+

+(+9+2@*

-*@()2- ,@2+9C))@ ,@2- ,92( ,)2) ,)2@

De2e57er-

?+1+

-*)+*2**

+(>C*2(9

@2>*C99>>9@ -2+ ,(2@ ,+2> (29

#a/ra;-

?+11

+(+-2-

-C>*)2*9

,-(29*+9))C ,-(2- ,-(2@ ,--2* ,92+

$e7rar;-?+11

-C@+)2-C

-99((2*-

,>2*>(C9(* ,+29 ,@2+ ,@2( ,+2)

Mar2h-?+11 -9*C+2+C

-*+*(2-C

92+9>+9-+@> @2- @29 @2> )29

Ari4 -?+11 -*@>2--

-*+*+2(+

,(2C9*(@9)* ,(2@ ,-2+ (2@ -2)

Ma; < ?+11 -*++@2(+

-C+>+2(

,)2-(((+*) ,>2+ ,+2* ,+2@ ,>2-


49/52

#/e < ?+11 -C)+92-+

-C*>2C

(2C***99*9C (2- ,-2( ,(29 ,-2-

#4; - ?+11 -C*9@2*

-C+(*2)+

,@2(>>*@9* ,-2) ,+2- ,-2* (2*

Ag3t )+2+

>

-@-2>

>

,-(2)@C)C-C ,*2( ,*2+ ,C2( ,2)

Sete57er-

?+11

-)C)2- -*C2(9

(2C--)>) ,>2- ,>2) ,+2+ ,-2-

O2to7er-

?+11

-++)2*9

-9C(@2C *29>(+)9@- )29 @2@ @2> >2)

No9e57er-

?+11

-9)@(2))

-9((C2>@

,>2(>@-*@ ,C2@ ,*2+ ,C2 ,92C

De2e57er-

?+11

-)))2*>

-))@>2*>

,2--+->@> ,C2@ ,-(2@ ,C29 ,2*

AERAGE

RETRN

,(2-9(9+>+-1.375 -2.15 -1.44167 -0.825

STD DE )2+@+C)+ 4.848061 4.921029

4.861733 4.312898

SHARPE

RATIO-0.2412661

-

0.4383

2 -0.58931 -0.4508 -0.36518

,ETA 1.068123 1.021518

0.99899

5 1.111245

ALPHA -0.7158

9 -1.51965 -0.82521 -0.13928

TRACKIN

G ERROR

)2+@+C)+ 4.848061 4.921029

4.86173

3 4.312898

TREYNOR

RATIO

-

1.9894

7 -2.83891 -2.19387 -1.41733

SENSEX

OPENIN

G

SENSEX

CLOSIN

G

SENSEX

RETRN=

>

,IRLA

=>

HD$C

=>

ID$C

=>

#P

MORGAN

>

#a/ar;-

?+1+

-9>)2>9 ->)92* ,)2C(-+)C@C ,)2- ,@2( ,2) ,)2@

$e7rar;-

?+1+

->>*2>+ -+)@2+ ,(2)+(*)-*- (2- ,-2* (2) (2

Mar2h-

?+1+

-+))2>> -9)+9299 92C+9C>+@9- (2) @2+ @29 @2)

Ari4 -?+1+ -9)))2(@ -9)(>2@9 ,(2+*>9-9* +29 -2* ,(2@ +2>

Ma; - ?+1+ -9)>2C -2@ ,@2*>(+>C ,@2 (2C ,+2) ,-2*

#/e @2(* >2@C*9*C)C )2) 29 92> 92>


50/52

?+1+

#4; - ?+1+ -99*2>@ -9**+2(( -29C)(@*>> +2- +2> +2+ >2@

Age3t-

?+1+

-9*--2>- -C(>+2-- (29@@>@-*C ,-2+ +2C ,(2) (2

Sete57er-

?+1+

-C+-)2+C -**)2>@ *2))C+>*(-9 )2C 92+ -(2C C2(

O2to7er-

?+1+

+((*@2-- -**@-2(@ ,(29-9))- ,-2C ,-2> ,+2> ,(2

No9e57er-

?+1+

+(+9+2@* -*@()2- ,@2+9C))@ ,+2> ,+29 ,>2 ,>2

De2e57er-

?+1+

-*)+*2** +(>C*2(9 @2>*C99>>9@ 92) (2) +2* -2(

#a/ra;-

?+11

+(+-2- -C>*)2*9 ,-(29*+9))C ,C2 ,*29 ,-(2) ,-(29

$e7rar;-

?+11

-C@+)2-C -99((2*- ,>2*>(C9(* ,@2 ,+2- ,-2+ ,+2(

Mar2h-?+11

-9*C+2+C -*+*(2-C 92+9>+9-+@> +2) @2 )2> @2*

Ari4 -?+11 -*@>2-- -*+*+2(+ ,(2C9*(@9)* ,+2> (2 ,-2@ ,(2)

Ma; < ?+11 -*++@2(+ -C+>+2( ,)2-(((+*) ,+2 ,-2> ,+2@ ,-2>

#/e 2C (2C***99*9C ,(2@ (2* -2- +2(

#4; - ?+11 -C*9@2* -C+(*2)+ ,@2(>>*@9* ,+2( ,+2( ,+2+ ,-2>

Ag3t )+2+> -@-2>> ,-(2)@C)C-C ,-+2) ,C2) ,*2( ,92@

Sete57er-

?+11

-)C)2- -*C2(9 (2C--)>) +2+ ,(2+ ,+2+ ,+2)

O2to7er-?+11

-++)2*9 -9C(@2C *29>(+)9@- -(2) 2C *2 2

No9e57er-

?+11

-9)@(2)) -9((C2>@ ,>2(>@-*@ ,)2@ ,92@ ,929 ,92@

De2e57er-

?+11

-)))2*> -))@>2*> ,2--+->@> (2- ,)2) ,)2@ ,2+

AERAGE

RETRN

(2-9(9+>+ ,(2)9* (2>(@-9

,(2))C> ,(2@

STD DE5.666243

5.1044

72

4.60826

09

5.4581

345 4.87344

SHARPE

RATIO-0.02346

-

0.2603926

-

0.096747

-

0.2397034 -0.2359

,ETA 0.9547712

1.09363

13

0.9689

969 1.04673

ALPHA -1.1683

296

0.85713

83

-

0.8487

429 0.13308

TRACKIN 5.666243 5.1044 4.60826 5.4581 4.87344


51/52

G ERROR 72 09 345

TREYNOR

RATIO

-

1.3921

311

-

0.40766

3

-

1.3501

936 -1.0986


52/52

;ha1ter ,

Mutual Funds Harsh

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