1

“A COMPARATIVE STUDY OF EQUITY BASED

MUTUAL FUND OF RELIANCE AND HDFC”

Deepak Agrawal1

Deepak Patidar2

Abstract

Mutual funds are key contributors to the globalization of financial markets and one

of the main sources of capital flows to emerging economies. Despite their

importance in emerging markets, little is known about their investment allocation

and strategies. This article provides an overview of mutual fund activity in

emerging markets. It describes about their size and their asset allocation. All fund

managers are not successful in the formation of the portfolio and so the study also

focuses on the empirically testing on the basis of fund manager performance and

analysing data at the fund-manager and fund-investor levels. The study reveled

that the performance is affected by the saving and investment habits of the people

and at the second side the confidence and loyalty of the fund Manager and

rewards- affects the performance of the MF industry in India.

Key words: Net Asset Value (NAV), Asset Under Management (AUM)

1. Assistant Professor , (Faculty of Management), Indore Institute of Science Technology, Devi Ahilya University, Indore (M.P.), India. e.mail: prof.deepakagrawal@rediffmail.com

2. Research scholar, Truba College of Engineering & Technology, Devi Ahilya University, Indore (M.P.), India. e.mail: patidar.deep@gmail.com Ph. No. 99932-98866

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I. Introduction

A mutual fund is a pool of money, collected from investors, and is invested according to

certain investment options. A mutual fund is a trust that pools the savings of a number of

investors who share a common financial goal. A mutual fund is created when investors put

their money together. It is therefore a pool of the investor’s funds. The money thus

collected is then invested in capital market instruments such as shares, debentures and

other securities. The income earned through these investments and the capital

appreciations realized are shared by its unit holders in proportion to the number of units

owned by them.

The most important characteristics of a fund is that the contributors and the beneficiaries

of the fund are the same class of people, namely the investors. The term mutual fund

means the investors contribute to the pool, and also benefit from the pool. There are no

other claimants to the funds. The pool of funds held mutually by investors is the mutual

fund.

A mutual funds business is to invest the funds thus collected according to the wishes of the

investors who created the pool. Usually, the investors appoint professional investment

managers, to manage their funds. The same objective is achieved when professional

investment managers create a product and offer it for investment to the investor. This

product represents a share in the pool, and pre states investment objectives. Thus a mutual

fund is the most suitable investment for the common man as it offers an opportunity to

invest in a diversified, professionally managed basket of securities at a relatively low cost.

Investors in the mutual fund industry today have a choice of 39 mutual funds, offering

nearly 500 products. Though the categories of product offered can be classified under

about a dozen generic heads, competition in the industry has led to innovative alterations

to standard products. The most important benefit of product choice is that it enables

investors to choose options that suit their return requirements and risk appetite. Investors

can combine the options to arrive at their own mutual fund portfolios that fit with their

financial planning objectives.

1.1 Concept

Mutual fund is a mechanism for pooling the resources by issuing units to the investors

and investing funds in securities in accordance with objectives as disclosed in offer

document.

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Fig. 1: Mutual Fund Operation Flow Chart

www.utiicm.com

1.2 ORGANISATION OF A MUTUAL FUND

There are many entities involved and the diagram below illustrates the organizational set

up of a mutual fund.

Fig. 2: Organizational set up of a mutual fund

www.utiicm.com

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1.3 Phases of the Indian Mutual Fund industry

First Phase – 1964-87 (Established Unit Trust of India (UTI)).

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

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

Fourth Phase – since February 2003 (Growth Phase).

During the various phases the Assets Under Management (AUM) has been increased

from Rs. 67 billion in 1963 to 6899 billion Rupees as in July’ 2009.

II Literature Review:

Jensen (1967) derived a risk-adjusted measure of portfolio performance (Jensen’s alpha)

that estimates how much a manager’s forecasting ability contributes to fund’s returns.

Sharpe, William (1994) suggested the ‘Sharp- Ratio technique for the measurement for

the performance measurement of the MF. Berkowitz et.al,(1997), supports the argument

& states that, past fund performance influences individual investment decisions along

with implying strong incentives for managers increase the performance of Mutual funds.

Mishra, Rehman (2000) measured MF performance using lower partial moment Risk

from the lower partial moment is measured by taking into account only those states in

which return is below a pre-specified “target rate” like risk-free rate. Brealey and

Mayers (2002) supported Quality of Earnings as a key performance measure. Earnings

can be manipulated by adopting different accounting policies. Further supported by

Grahm et al. (2002), analyst rely on the primarily data, reported cash flows and the use

of the accounting conservations in evaluating companies. Ramasamy et al, (2003),

agreed that three elements consistent past performance, size of funds & cost of

transaction effects the performance.

Roy & Deb (2003) used conditional performance evaluation on a sample of 89 Indian

MF schemes measuring with both unconditional and conditional form of CAPM model.

The results suggest that the use of conditioning lagged information variables improves

the performance of mutual fund schemes, causing alphas to shift towards right and

reducing the number of negative timing coefficients. Rao, Ravindran (2003) evaluated

performance in a bear market through Relative Performance Management index & risk –

return analysis.

Panwar et.al (2005) uses Residual Variance (RV) as the measure of MF portfolio

diversification. RV has a direct impact on shape fund performance measure. Kacperczyk

et.al (2005) demonstrated that unabsorbed information create values for some funds.

Return gap helps to predict future fund performance & investors should use additional

measures to evaluate the performance.

Agrawal (2006) analyze the Indian Mutual Fund Industry pricing mechanism with

empirical studies on its valuation. The study reveled that the performance is affected

saving and investment habits of the people.

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III. Research Methodology

3.1 Objectives of the study:

1. To make a comparative analysis of equity based mutual fund in India.

2. To analyse the performance of private sector Mutual Funds: Reliance liquidity fund

alongwith HDFC liquidity fund.

3.2 Database & Methodology:

a) Database for the current Study:

i) NAV selected for the short term & medium term ranging within 1 week to 3 years

(period from 1st April, 2006 to 31 March, 2008) along with the index- value of BSE

SENSEX is also considered for the same period.

ii) Secondary data is used for the analysis which is collected through various sources

like internet, books of journals and newspaper articles.

b) Methodology:

Mispricing of the Mutual funds can be evaluated by comparing the return on market

and return on stock. During the pricing period of the return on stock is negative, then it

indicates overpricing and if are positive indicates under pricing. Relative performance

measurement is used to measure the performance of the MF with SENSEX. The

various statistical tools have been used to compare the performance of the funds.

Standard Deviation (SD) – It’s significance lies in the fact that sample is free from

defects of sampling , it measures the absolute dispersion, the greater the SD, greater

will be magnitude of the deviation of the values from their mean. Small SD means

high degree of uniformity & homogeneity of a series. The actual mean is considered

for the given Tabulated data .

The square of standard deviation of returns gives the Variance. Coefficient of variation

(COV) is found by dividing standard deviation by mean returns.

Beta:

Beta is a fairly commonly used measure of risk. It basically indicates the level of

volatility associated with the fund as compared to the benchmark. The success of beta

is heavily dependent on the correlation between a fund and its benchmark. If the fund

portfolio doesn’t have a relevant benchmark index than a beta would be grossly

inadequate. A beta that is greater than one means that fund is more volatile than the

benchmark, while a beta of less than one means that the fund is less volatile than the

index. A fund with a beta very close to 1 means the fund’s performance closely match

the index or benchmark.

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The Sharpe Measure: In this model, performance of fund is evaluated on the basis of sharp ratio, which is a

ratio of returns generated by the fund over and above risk free rate of return and the

total risk associated with it. According to Sharpe, it is the total risk of the fund that the

investor are concerned about so, the model evaluates fund on the basis of reward per

unit of total risk, symbolically, it can be return as :

Sharpe index (Si) = (Rp – Rf )/ σ p

Where, Si= Sharp index ratio

σ p =Standard deviation of the portfolio return.

Rp= Portfolio average return

Rf = Risk free rate of interest.

While a high and positive Sharpe Ratio shows a superior risk adjusted performance of

a fund, a low and negative Sharpe Ratio is an indication of unfavorable performance.

Treynor’s Performance Index:

The Treynor Index is a measure with which you may measure the performance of

your portfolio over a given period of time. The important aspect of the Treynor Index

is that this performance indicator takes into consideration the risk of the portfolio.

In order to use the Treynor Index, you must know three things; the portfolio return, the

risk-free rate of return, and the beta of the portfolio. For the risk-free rate of return,

you may use the average return (over the period of time) of some government bond or

note. The beta of the portfolio is a measure of the systematic risk of the portfolio.

Using the beta, rather than the standard deviation (as in the Sharpe Index), you are

assuming that the portfolio is a well diversified portfolio.

Formula for the index:

p

RfRpTn

β

−=

Treynor = (Portfolio Average Return - Risk-Free Return) / Beta co-efficient of the

portfolio

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IV. Reliance Mutual Fund The Reliance Mutual Fund is one of the most popular and leading mutual fund in India.

The Fund is owned by Anil Dhirubhai Ambani Group and with respect to net worth it

ranks among the top three of all the private financial service providers in India. It is an

ISO 9001:2000 certified company, which offers innovative mutual fund products to a wide

pool of customers. The Reliance mutual fund products are available in hundred and fifteen

cities across India. It is one of the fastest growing mutual fund in India and the main

reason of its popularity is that it has a wide portfolio of products that meets the

requirements of each and every type of investors. The Reliance Mutual Fund is headed by

Mr. Vikrant Gugnani - the CEO of the company.

Details of Reliance Mutual Fund:

• The schemes of Reliance Mutual Fund are being managed by Reliance Capital Asset

Management Ltd, which is a subsidiary of Reliance.

• Reliance Capital Ltd holds 93.37% of the paid-up capital of the Reliance Capital Asset

Management Ltd.

• The value of the cumulative assets that are being managed (also called Assets Under

Management (AUM)) amounted to Rs. 80,779 crores, as on Dec 31st 2007.

• The investor base of Reliance Mutual Fund is over 43.67 lakh.

Equity/Growth Schemes:

The aim of growth funds is to provide capital appreciation over the medium to long- term.

Such schemes normally invest a major part of their corpus in equities. Such funds have

comparatively high risks. These schemes provide different options to the investors like

dividend option, capital appreciation, etc. and the investors may choose an option

depending on their preferences. The investors must indicate the option in the application

form. The mutual funds also allow the investors to change the options at a later date.

Growth schemes are good for investors having a long-term outlook seeking appreciation

over a period of time.

Reliance Equity Fund – Growth (3-Star Fund ICRA Online MF Rank3 Year-March 2009)

FUND FACTS

Objectives of the Fund

The primary investment objective of the scheme is to seek to generate capital appreciation

& provide long-term growth opportunities by investing in a portfolio constituted of equity

& equity related securities of top 100 companies by market capitalization & of companies

which are available in the derivatives segment from time to time and the secondary

objective is to generate consistent returns by investing in debt and money market securities.

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Fund features

Type of Scheme Open Ended

Nature Equity

Option Growth

Inception Date Mar 28, 2006

Face Value

(Rs/Unit)

10

Fund Size in Rs. Cr. 2232.02 as on Jun

30, 2009

Fund Manager Sunil Singhania.

SIP

STP

SWP

Expense ratio(%) 1.87

Portfolio Turnover

Ratio (%)

114

Last Dividend

Declared

-NA-

Minimum Investment

(Rs)

380053

Purchase

Redemptions

Daily

NAV Calculation Daily

Entry Load Amount Bet. 0 to 19999999 then Entry load is 2.25%. and

Amount Bet. 20000000 to 49999999 then Entry load is 1.25%.

and Amount greater than 50000000 then Entry load is 0%.

Exit Load If redeemed bet. 0 Year to 1 Year; and Amount Bet. 0 to

49999999 then Exit load is 1%. and Amount greater than

50000000 then Exit load is 0%.

Net Asset Value (NAV) Latest NAV 12.76 as on Jul 15, 2009

Benchmark Index - S&P Nifty 4,233.50 as on Jul 15, 2009

52 - Week High 13.54 as on Jun 10, 2009

52 - Week Low 8.21 as on Mar 9, 2009

PORTFOLIO Attribute

P/E 21.90 as on Jun – 2009

P/B 3.74 as on Jun – 2009

Dividend Yield 1.16 as on Jun – 2009

Market Cap (Rs. in crores) 71,812.69 as on Jun – 2009

Large 55.20 as on Jun – 2009

Mid 18.27 as on Jun – 2009

Small NA

Top 5 Holding (%) 27.60 as on May – 2009

No. of Stocks 21

Expense Ratio (%) 1.87

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Fig: 3 STYLE BOX

Sector Allocation (%)

Auto & Auto ancillaries 3.89

Banks 10.75

Computers - Software & Education 10.11

Current Assets 24.33

Diversified 1.20

Entertainment 3.72

Housing & Construction 4.70

Metals 1.45

Miscellaneous 2.20

Oil & Gas, Petroleum & Refinery 9.88

Pharmaceuticals 8.81

Power Generation, Transmission & Equip 4.85

Steel 2.96

Telecom 9.52

Textiles 1.63

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Fig. 4: Sector wise allocation of Reliance Equity Growth Fund

Figure 5: Asset Allocation (%)

Asset Allocation (%)

75.67

24.33

Asset Alocation

Equity

Debt

Cash & Eq.

Equity Debt Cash & Equivalent

75.67 0.00 24.33

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V. HDFC Mutual Fund

HDFC Mutual Fund is governed by HDFC Asset Management Company Limited

(AMC). The HDFC mutual fund was approved by SEBI in June 2000. Equity Funds,

Balanced Funds, and Debt Funds are the mutual fund schemes offered by HDFC

Mutual Fund.

An Overview of HDFC Mutual Fund-

HDFC Mutual Fund has witnessed significant growth in the past few years. It is

regulated by HDFC Asset Management Company Limited (AMC) which works as an

Asset Management Company (AMC) for HDFC Mutual Fund. HDFC Asset

Management Company Limited (AMC) is a Joint Venture concern between the large-

scale housing finance company HDFC and British investment firm Standard Life

Investments Limited.

The HDFC Asset Management Company Limited conducts the activities carried out by

the HDFC Mutual Fund and manages the assets of various mutual fund schemes. The

August 2006 report states that the fund has assets of Rs. 25,892 crores under Asset

Management Company (AMC).

HDFC Asset Management Company Limited (AMC) entered into an agreement with

Zurich Insurance Company (ZIC) with the aim to develop the asset management

business in India in the year 2003. Following to this, all the mutual fund schemes of

Zurich Mutual Fund in India got transferred to HDFC Mutual Fund and gained the

name of HDFC schemes.

Details of HDFC Mutual Fund-

HDFC Asset Management Company Ltd (AMC) was set up on December 10, 1999

under the Companies Act, 1956. It got the approval to function as an Asset

Management Company for the HDFC Mutual Fund by SEBI on June 30, 2000. AMC

was appointed in order manage the HDFC Mutual Fund. The registered office of HDFC

Asset Management Company Limited (AMC) is located at Ramon House, 3rd Floor,

H.T. Parekh Marg, 169, Backbay Reclamation, Churchgate, Mumbai - 400 020.

Schemes of HDFC Mutual Fund-

• HDFC Equity Fund

• HDFC Prudence Fund

• HDFC Capital Builder Fund

• HDFC Tax Saver

• HDFC Top 200 Fund

• HDFC High Interest Fund

• HDFC Cash Management Fund

• HDFC Sovereign Gilt Fund

Equity Funds, Balanced Funds, and Debt Funds are the broad categories of mutual fund

schemes offered by HDFC Mutual Fund.

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HDFC EQUITY FUND – GROWTH (3-STAR FUND ICRA Online MF Rank3 Year-March 2009)

FUND FACTS

OBJECTIVE

Aims at providing capital appreciation through investments predominantly in equity

oriented securities

FUND FEATURES

Type of Scheme Open Ended

Nature Equity

Option Growth

Inception Date Jan 1, 1995

Face Value

(Rs/Unit)

10

Fund Size in Rs.

Cr.

3870.79 as on Jun

30, 2009

Fund Manager Anand Laddha

SIP

STP

SWP

Expense ratio (%) 1.86

Portfolio

Turnover

Ratio(%)

80.18

Last Dividend

Declared

NA

Minimum

Investment (Rs)

380053

Purchase

Redemptions

Daily

NAV Calculation Daily

Entry Load Amount Bet. 0 to 49999999 then Entry load is 2.25%. and

Amount greater than 50000000 then Entry load is 0%.

Exit Load If redeemed bet. 0 Month to 12 Month; and Amount Bet. 0 to

49999999 then Exit load is 1%. and Amount greater than

50000000 then Exit load is 0%.

NET ASSET VALUE (NAV)

Latest NAV 176.82 as on Jul 17, 2009

Benchmark Index - CNX500 3,542.20 as on Jul 17, 2009

52 - Week High 178.02 as on Jun 10, 2009

52 - Week Low 91.23 as on Mar 9, 2009

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Portfolio Attributes

Fig 6: Style Box

Auto & Auto ancillaries 2.87

Banks 18.89

Chemicals 0.41

Computers - Software & Education 9.33

Consumer Durables 4.50

Current Assets 2.97

Electricals & Electrical Equipments 7.18

Engineering & Industrial Machinery 1.18

Entertainment 6.17

Fertilizers, Pesticides & Agrochemicals 0.85

Finance 6.39

Food & Dairy Products 5.74

Housing & Construction 6.10

Oil & Gas, Petroleum & Refinery 4.79

Personal Care 1.32

Pharmaceuticals 13.23

Power Generation, Transmission & Equip 1.68

Printing & Stationary 1.05

Steel 0.47

Telecom 3.11

Textiles 0.77

Transport & Travel 1.02

P/E 21.00 as on Jun - 2009

P/B 3.90 as on Jun - 2009

Dividend Yield 1.57 as on Jun - 2009

Market Cap (Rs. in crores) 38,760.36 as on Jun - 2009

Large 53.56 as on Jun - 2009

Mid 40.49 as on Jun - 2009

Small 2.98 as on Jun - 2009

Top 5 Holding (%) 21.96 as on May - 2009

No. of Stocks 50

Expense Ratio (%) 1.86

Sector allocation (%)

Fig. 7 : Sector wise allocation of HDFC Equity Growth Fund

Asset Allocation (%)

Equity Debt

97.03 0.00

Figure 7: Asset Allocation %

Sector allocation (%)

allocation of HDFC Equity Growth Fund

Cash & Equivalent

2.97

97.03

2.97

Asset Alocation

Equity

Debt

Cash & Eq.

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Equity

Cash & Eq.

15

Findings:

Sensex Returns

Table 1: Sensex Returns

YEAR BEGINNING CLOSING SENSEX RETURNS %

2006 11342.96 13072.1 15.244169

2007 12811.93 15644.44 22.108379

2008 15771.72 9708.5 -38.443619

Reliance Mutual Equity Fund- Growth

Table 2: NAV & Sensex returns

YEAR

BEGINNING

NAV

END

NAV

NAV

RETURN

SENSEX

RETURNS

2006 10.16 11.04 8.661417323 15.244169

2007 10.64 13.28 24.81203008 22.108379

2008 13.36 9.29 -30.46407186 -38.443619

Total 3.009375542 -1.091071

Mean 1.003125181 -0.3636903

Standard Deviation 28.42268355 33.1562976

Beta

0.56180175

covariance of y to x 617.6111755

variance of y 1099.34007

Assumed risk free

return in % 8

Tp -12.4543486

Tm -8.36369033

Sp -0.24617221

Sm -0.25225043

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HDFC Mutual Equity Fund- Growth

Table 3: NAV & Sensex returns on HDFC Equity Fund

1. Overall both funds have disclosed negative returns, but in comparison to the Sensex

returns they performed fairly well :

Reliance equity growth fund HDFC equity growth fund

SD of Sensex returns 33.15 33.15

SD of Funds returns 28.42 31.33

SD of Reliance equity growth fund is lower to the HDFC equity growth fund supports

lower level of risk hence found more stable, where as SD of Sensex is high in both

cases indicates they have not performed as per benchmark index.

2. Beta (β) of both funds is less than 1 means the funds are less volatile than the Index.

Where as, HDFC equity growth fund is more volatile 0.628 in comparison to Reliance

equity growth fund 0.5618. Funds with beta close to 1 means the funds performance

closely match the benchmark index.

3. Treynor’s Performance Index (Sp): the relationship between a given market return

and the funds return is given by the characteristic line. It measures the fund

performance with the market performance. The slope of the line reflects the volatility

of a fund’s return. A steep slope indicates the fund is very sensitive to the market

YEARS

BEGINNING

NAV

END

NAV

NAV

RETURNS

SENSEX

RETURNS

2006 119.5 142.602 19.3322176 15.244169

2007 136.747 165.79 21.2384915 22.108379

2008 164.84 108.85 -33.96627 -38.44362

Total 6.60443877 -1.091071

Mean

2.20147959 -0.36369

standard deviation 31.3366889 33.156298

Beta 0.62838928

covariance of y to x

690.8135125

variance of y 1099.34007

Assumed risk free

return in % 8

Tp -9.227592858

Tm -8.363690333

Sp -0.185039346

Sm -0.25225043

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performance and less inclination indicates lower sensitivity. The result revealed that

the investor would prefer HDFC growth fund because it offers negative but better

returns (-0.18) in comparison to Reliance growth fund (-0.246) for the same level of

risk exposer.

4. Sharpe’s Performance Index- It measures the risk premium of the portfolio relative to

the total amount of risk in the portfolio. This risk premium is the difference between

the portfolios average rate of return and the riskless rate of return. This index assigns

the highest value to assets that have best risk – adjusted average rate of return. The

larger the Sp, better the fund has performed. HDFC growth fund ranked as better fund

because its index (-0.185) is lower than Reliance growth fund (-0.2416). Although the

SD is higher in comparison to the Reliance growth fund but HDFC growth fund better

performed by using sharp’s measure.

VI. Outcomes: Mutual Fund Company must possess the following points:

a) Professional Management — AMC must be managed by the Professional who

should research, selects, and monitors the performance of the securities the fund

purchases.

b) Diversification — Diversification is an investing strategy that can be neatly

summed up as "Don't put all your eggs in one basket." Spreading your investments

across a wide range of companies and industry sectors can help lower your risk if a

company or sector fails. Some investors find it easier to achieve diversification

through ownership of mutual funds rather than through ownership of individual

stocks or bonds.

c) Affordability — Some mutual funds accommodate investors who don't have a lot

of money to invest by setting relatively low dollar amounts for initial purchases,

subsequent monthly purchases, or both.

d) Liquidity — Mutual fund investors can readily redeem their shares at the current

NAV — plus any fees and charges assessed on redemption — at any time.

e) Past performance influences the future performance of the funds.

f) Performance of the funds can be drastically improved by the better incentives to

the fund manager.

g) High rate of domestic savings and a fast –developing liberalizing economy can

elevate the growth of MF Sector in our country.

Conclusion :

Study reveled that financial analysts rely primarily on financial statement analysis i.e

Balance sheet, Profit and loss statements, cash flow statements in evaluating

companies reported financial results, and where as less use of technical analysis was

found. The desired β should be 1 but rarely it is found so, from the portfolios it is

evident that the best portfolios during the period are in the range of 0.04 - 1.212

(Bodhanwala, 2006). The negative returns reported in the research were due to the

depressed monetary market .

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VII. References & Bibliography: Special thanks to my colleague Mr. Sahilesh S. Thakur for helping in statistical

testing.

a) Text:

V.K.Bhalla, Investment Management, New Delhi, S. Chand, 2008.

Punithavathy Pandian, Security Analysis and Portfolio Management, New Delhi,

Vikas Publishing House Pvt. Ltd., 2007

b) Newspapers and Magazines articles:

Editor, “Increase of Cash Flow under Equity Schemes”, Business Bhaskar , Indore edition ,

August 28, 2009, p.11.

b) Journals articles:

Agrawal Deepak (2006), “Measuring Performance of Indian Mutual Funds”, LNCT-MER

Prabandhan & Taqniki, Vol. I (1) Sept 2007, pp. 179-185.

Bala Ramasamy, Matthew C.H.Yeung (2003), “Evaluating mutual funds in an emerging

market: factors that matter to financial advisors”, International Journal of Bank

Marketing, Vol.21, Issue 3, pp.122-136.

Bodhanwala J Ruzbeh (2006), “An Empirical study on analyzing How Fund managers in

India Analyze Financial Reports with special focus on quality of reported earnings”,

ICFAI University Journals of Applied Finance, Vol.12, No.9, September 2006, pp.5-38.

Divya Nigam (2006), “MF: A Prospering Reality”, ICFAI University Journals, Vol VII,

issue- II, pp.49-59.

Graciela L. Kaminsky, Richard K. Lyons and Sergio L. Schmukler (2006), “Mutual Fund

Investment in Emerging Markets: An Overview”, University of California, Berkeley, and

the National Bureau of Economic Research, Vol. 1, Paper No. 2529.

Marcin T. Kacperczyk, Clemens Sialm and Lu Zheng (2008), "Unobserved Actions of Mutual Funds", The Review of Financial Studies, Vol. 21, No. 6 (November), pp.2379-

2416.

Michael C. Jensen (1967), “ The Performance of Mutual Funds in the period 1945-1964”,

Journal of Finance, Vol. 23, No. 2, pp. 389-416.

Michael K. Berkowitz et, (1997), “Management Compensation and the Performance of

Mutual Funds”, University of Toronto, Department of Economics in its series Working

Papers with number berk-97-01.

Mishra, Mahmud Rahman, (2001) “Measuring mutual fund performance using lower

partial moment”, Global Business Trends, Contemporary Readings , 2001 edition.

Brealey Richard A and Mayers Stewart C (2002), “Principles of Corporate Finance”, Mc.

Graw Hill, New York.

19

Graham Carol M, Cannice Mark v and Sayre Todd (2002), “ Analysing Financial

Analysts”, Journal of Management Research.

Sharad Panwar & Dr. R. Madhumathi ( 2005), “Characteristics & performance evaluation

of selected Mutual Funds in India” , 9th Indian Institute of Capital Market Conference,

Mumbai.

c) Webliography :

Bijan Roy, Saiket Sovan Deb (2003), “The conditional performance of Indian mutual

funds: an empirical study”, Working paper, http://papers.ssrn.com/sol3/papers.cfm?

abstract_id=593723, Accessed on Aug. 22, 2009.

S. Narayan Rao , M. Ravindran (2003), “Performance Evaluation of Indian Mutual

Funds”, Working paper , www.papers.ssrn.com/sol3/papers.cfm?abstract_id=433100,

Accessed on July 10, 2009.

d) Web Resources:

www.bseindia.com www.amfiindia.com www.valueresearchonline.com

www.mutulfundsindia.com www.hdfcfund.com www.finance.indiamart.com

www.reliancemutual.com www.ssrn.com www.utiicm.com

e) Search engine: www.google.com

Fig. 8 : Growth in Assets under Management (AUM)

Source: http://www.amfiindia.com/showhtml.aspx?page=mfindustry

20

Table 4: AUM

Assets Under Management (AUM) as at the end of JUL-2009 (Rs in Lakhs)

Sr No Mutual Fund Name

Average AUM For The Month

Excluding Fund of

Funds - Domestic but

including Fund of Funds - Overseas

Fund Of Funds -

Domestic

1 AIG Global Investment Group Mutual Fund 179720.20 0

2 Baroda Pioneer Mutual Fund 401700.70 0

3 Benchmark Mutual Fund 121924.73 0

4 Bharti AXA Mutual Fund 26337.00 0

5 Birla Sun Life Mutual Fund 5733178.38 1781.19

6 Canara Robeco Mutual Fund 785430.01 0

7 DBS Chola Mutual Fund 273339.10 0

8 Deutsche Mutual Fund 1430882.92 0

9 DSP BlackRock Mutual Fund 1726245.01 0

10 Edelweiss Mutual Fund 6791.24 0

11 Escorts Mutual Fund 20450.05 0

12 Fidelity Mutual Fund 932861.36 3063.56

13 Fortis Mutual Fund 885743.93 8948.83

14 Franklin Templeton Mutual Fund 2763009.83 21548.36

15 Goldman Sachs Mutual Fund N/A N/A

16 HDFC Mutual Fund 8336610.28 0

17 HSBC Mutual Fund 888356.21 0

18 ICICI Prudential Mutual Fund 7332855.79 2751.16

19 IDFC Mutual Fund 2270876.85 1279.43

20 ING Mutual Fund 231452.18 18256.69

21 JM Financial Mutual Fund 774963.60 0

22 JPMorgan Mutual Fund 370046.90 0

23 Kotak Mahindra Mutual Fund 3124639.80 15674.93

24 LIC Mutual Fund 3509369.28 0

25 Mirae Asset Mutual Fund 22682.72 0

26 Morgan Stanley Mutual Fund 216731.55 0

27 PRINCIPAL Mutual Fund 923475.06 0

28 Quantum Mutual Fund 6754.46 24.23

29 Reliance Mutual Fund 10833438.02 0

30 Religare AEGON Mutual Fund N/A N/A

31 Religare Mutual Fund 1223954.32 0

32 Sahara Mutual Fund 20719.69 0

33 SBI Mutual Fund 3415791.97 0

34 Shinsei Mutual Fund 20325.82 0

35 Sundaram BNP Paribas Mutual Fund 1334677.03 0

36 Tata Mutual Fund 2059359.02 0

37 Taurus Mutual Fund 64728.21 0

38 UTI Mutual Fund 6725189.19 0

Grand Total 68994612.41 73328.38

Source: http://www.amfiindia.com/AUMReport_Frm_Po.aspx?rpt=fwise