8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
1/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
INDUSTRY PROFILE
The Indian broking industry is one of the oldest trading industries that
have been around even before the establishment of the BSE in 1875. Despite
passing through a number of changes in the post liberalisation period, the
industry has found its way towards sustainable growth. With the purpose of
gaining a deeper understanding about the role of the Indian stock broking
industry in the countrys economy, we present in this section some of the
industry insights gleaned from analysis of data received through primaryresearch.
i. On the basis of geographical concentration, the West region has the
maximum representation of 52%. Around 24% firms are located in the
North, 13% in the South and 10% in the East
ii. 3% firms started broking operations before 1950, 65% between 1950-
1995 and 32% post 1995.
iii. In the cash market, around 34% firms trade at NSE, 14% at BSE and
52% trade at both exchanges. In the derivative segment, 48% trade at
NSE, 7% at BSE and 45% at both, whereas in the debt market, 31% trade
at NSE, 26% at BSE and 43% at both exchanges.
iv. Trading, IPOs and Mutual Funds are the top three products offered with
90% firms offering trading, 67% IPOs and 53% firms offering mutual fund
transactions
v. In terms of various areas of growth, 84% firms have expressed interest in
expanding their institutional clients, 66% firms intend to increase FII
clients and 43% are interested in setting up JV in India and abroad
vi. In terms of IT penetration, 62% firms have provided their website and
around 94% firms have email facility.
AMC ENGINEERING COLLEGE BANGALORE Page 1
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
2/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
TERMINAL:
Branches & Sub-Brokers:
The maximum concentration of branches is in the North, with as many as
40% of all branches located there, followed by the Western region, with 31%
branches. Around 24% branches are located in the South and East constitutes
for 5% of the total branches of the total sample.
In case of sub-brokers, almost 55% of them are based in the South. West
and North follow, with 30% and 11% sub-brokers respectively, whereas East
has around 4% of total sub-brokers.
AMC ENGINEERING COLLEGE BANGALORE Page 2
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
3/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
Financial Markets:
The financial markets have been classified as cash market, derivatives
market, debt market and commodities market. Cash market, also known as spot
market, is the most sought after amongst investors. Majority of the sample
broking firms are dealing in the cash market, followed by derivative and
commodities.
In the cash market, around 34% firms trade at NSE, 14% at BSE and
52% trade at both exchanges. In the equity derivative market, 48% of the
sampled broking houses are members of NSE and 7% trade at BSE, while 45%
of the sample operates in both stock exchanges. Around 43% of the broking
houses operating in the debt market, trade at both exchanges with 31% and
26% firms uniquely at NSE and BSE respectively.
AMC ENGINEERING COLLEGE BANGALORE Page 3
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
4/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
Products
The firm offers trading and various investment related value added
services. The sustained growth of the economy in the past couple of years has
resulted in broking firms offering many diversified services related to IPOs,
mutual funds, company research etc. However, the core trading activity is still
the predominant form of business, forming 90% of the firms in the sample.
Additionally, a host of other value added services such as fundamental and
technical analysis, investment banking, arbitrage etc are offered by the firms at
different levels.
AMC ENGINEERING COLLEGE BANGALORE Page 4
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
5/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
COMPANY PROFILE
2. 1.Background and inception of the company.
Geojit financial services limited was founded by Mr. C. J. George in 1987
as a partnership for doing broking business in Cochin Stock Exchange. In 1994,
the business was taken over by Geojit Financial Services Ltd... A joint venture
between Mr. C. J. George and the Kerala State Industrial Development
Corporations Ltd (KSIDC). In the following year, the company came up with an
IPO and the shares were listed in the various stock exchanges in India in 1995.
The company stands as the first member of NSE, the first company give
depository services in South India. Geojit Securities Ltd. is Indias first internet
brokerage firm. It has been active in the field of capital markets for 15 years. It is
a leading retail broker listed on major stock exchange and has 100 offices across
the country. The company has been growing at over 300% annually and has anet worth of over Rs.13 cr. The company endeavours to provide the best service
at the lowest possible cost to investors. The aim is supported by well qualified
human resource and constant up-gradation of technology. The company
possesses the largest pool of certified professionals in the Indian stock broking
industry.
2.2) Nature of the business carried.
Depository services
Stock Broking
Commodity futures
Distribution of financial products
Portfolio management services
Software development and sales
Loan against shares and warehouse receipts
AMC ENGINEERING COLLEGE BANGALORE Page 5
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
6/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
2.3)VISION, MISSION & QUALITY POLICIES:
VISION:
The vision of GEOJIT BNP PARIBAS is to be leading financial and
commodities markets intermediary for individual and institutional clients
from India and Overseas.
They continually strive to raise their products and service standards by
intelligent application of technology and processes.
MISSION:
They understand and respect customers needs to consistently deliver
total quality solution through constants skills up-gradation.
They believe that the company culture help to attract and retain the best
talent.
They uphold uncompromising ethical standards and strive to maintain adistinctive identity in public mindshare through innovation and quality.
They are committed to achieve profitable progress consistently.
They freely share their investments experience across all ages and strata
of society to encourage wise investments for a better future.
QUALITY POLICY
Talented, efficient and competent team of youngsters rolling out high
profile applications for the global business community, keeping in mind
true quality, total customer satisfaction, delivering on time, right time,
every time.
We, at Geojit Technologies, are always striving for continued
improvement and betterment of our own set standards in achieving total
quality management.
AMC ENGINEERING COLLEGE BANGALORE Page 6
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
7/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
The quality of the products and services delivered by Geojit
Technologies to customers is the concern of every personnel in the
organization.
2.4) PRODUCTS/SERVICES PROFILE:
Services Provided By GEOJIT BNP PARIBAS:
GEOJIT BNP PARIBAS Ltd. Plays a key role in India Capital Market by
giving different financial services to the investors. The company is regarded as
Indias first on-line share brokers and the first internet share trading firm in India.
The scope of GEOJIT BNP PARIBAS Ltd and various functions can be clubbed
under the following heads-
Equities (Broking Services through)
National Stock Exchange (NSE)
The Stock Exchange, Mumbai (BSE)
Derivatives(NSE)
Index Futures
Index Options
Stock Futures
Stock Options
Depository Services-NSDL
All DP services available at all branches
Delivery of shares through internet (Speed-e)
AMC ENGINEERING COLLEGE BANGALORE Page 7
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
8/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
Off market Transactions
Internet Services
Portfolio Management
GEOJIT BNP PARIBAS Ltd. Is SEBI registered portfolio Manager (Reg
no. 1N000316). They offer discretionary portfolio management services
to those who can invest a minimum of Rs. 5, 00,000. The initial
investment to the portfolio can be made either by transferring the
existing shares or by cash.
AMC ENGINEERING COLLEGE BANGALORE Page 8
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
9/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
2.5) AREAS OF OPERATION:-
Globally
Abu Dhabi
Bahrain
Dubai
Kawait
Mascat
Ras Alkhaimah
Sharjah
Nationally
Delhi
Kerala
Karanataka
Goa
Timal Nadu
Andhra Pradesh
Maharashtra
Madhya Pradesh
Rajasthan
Gujarat
Uttar Pradesh
West Bengal
Regional
AMC ENGINEERING COLLEGE BANGALORE Page 9
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
10/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
Belgaum
Bangalore
Hubli
Davangere
Tumkur
Mysore
2.6) OWNERSHIP PATTERN
AMC ENGINEERING COLLEGE BANGALORE Page 10
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
11/79
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
12/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
2.7) COMPETITORS INFORMATION
INDIABULLS
Indiabulls Group is one of Indias top Business houses with
businesses spread over Real Estate, Infrastructure, Financial Services,
Securities, Retail, Multiplex and Power sectors. The group companies are
listed on important Indian and Overseas markets. Indiabulls has been
conferred the status of a Business Superbrand by The Brand Council,
Superbrands India.
INDIA INFOLINE
The India Info line group, comprising the holding company, India
Info line Limited and its wholly-owned subsidiaries, straddle the entire
financial services space with offerings ranging from Equity research,
Equities and derivatives trading, Commodities trading, Portfolio
Management Services, Mutual Funds, Life Insurance, Fixed deposits,
Gold bonds and other small savings instruments to loan products and
Investment banking.
SHAREKHAN
Sharekhan Limited was formerly known as SSKI Investor Services
Private Limited. The company is based in Mumbai, India. Sharekhan
Limited offers online security broking and portfolio services to institutions
and large corporate houses as well as individual investors.
EDELWEISS CAP
Edelweiss is one of the leading financial services company in India.
Its current businesses include investment banking, securities broking, and
investment management. They provide a wide range of services to
corporations, institutional investors and high net-worth individuals.
AMC ENGINEERING COLLEGE BANGALORE Page 12
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
13/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
HSBC
HSBC Securities Services, "HSS", is a dedicated provider of
securities services to a wide range of corporate and institutional clients,
including investment managers, insurance funds, pension funds, charityfunds, and private, commercial and central banks and government
agencies.
2.8) INFRASTRUCTURE FACILITIES:-
WELFARE FACILITIES:-
Every employee is provided with the facilities such as, PF, Health
Insurance, Mediclaim along with their spouse and children, ESI, ESOP for
outstanding performers, Performance Appraisal for efficient and
extraordinary workers and for employees above 35yrs. Age is provided with
free health checkup annually.
Also the high authority members are provided with the transport facilities
and many more.
.
RESEARCH FACILITIES:-
A separate R and D department functions in finding out the information
about the area when they are planning to start up a new branch.
Also they function in providing the detailed information about the companys
performance in the market and about the Customers changing preferences
according to the changing environment.
AMC ENGINEERING COLLEGE BANGALORE Page 13
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
14/79
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
15/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
2.10) WORK FLOW MODEL:
2.11) FUTURE GROWTH AND PROSPECTS:-
Geojit BNP Paribas today is a leading retail financial services company in
India with a growing presence in the Middle East. The company rides on its rich
experience in the capital market to offer its clients a wide portfolio of savings andinvestment solutions. The gamut of value-added products and services offered
ranges from equities and derivatives to Mutual Funds, Life & General Insurance
and third party Fixed Deposits. The needs of over 495,000 clients are met via
multichannel services - a countrywide network of over 500 offices, phone
service, dedicated Customer Care centre and the Internet.
Strategic joint ventures and business partnerships in the Middle East haveprovided the company access to the large Non-Resident Indian (NRI) population
AMC ENGINEERING COLLEGE BANGALORE Page 15
Surveillance
Admin. Server
Internet
Cloud
D P Interface
(Proposed)
GEOJIT
Internet Server
Bank Interface
(Proposed)NSE Terminal
(Stock Exchange)
Clients
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
16/79
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
17/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
MCKENSYS 7 S FRAME WORK WITH SPECIAL REFERENCE
TO THE ORGANIZATION UNDER STUDY
INDRODUCTION
Two persons who developed this model, Tom Peters and Robert
Waterman, have been consultant at Mckinsey & co. so the 7S-Model is
popularly known as Mckinsey 7S. They published their 7-SModel in their
articleStructure is not Organization (1980) and in their books The art of
Japanese and Management (1981) and In search of excellence (1982).
AMC ENGINEERING COLLEGE BANGALORE Page 17
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
18/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
Strategy
Strategy is a plan an organization formulates to gain a substantial
advantage over the competition. Strategy is the art of devising and
employing a system of activities that mobilizes all resources towards a
valuable goal. Strategy is the determination of basic long term goals and
objectives of an enterprise, and the adoption of course of action and the
allocation of resources available for carrying out these goals.
Companys Strategy
Strategy comprises of actions a company plans in response to or in
anticipation of changes in its external environment. Being a company of
the stature that it is, Geojit cannot afford to work without objectives. An
overall group objective is already set and all the employees are driventowards that. Geojit believes that no individual is as big as the
organization itself. Competition is the key to survival. Geojit updates itself
of the surrounding competition which is always good and bring out service
and related products to beat the competition.
Structure
Structure describes the hierarchy of authority and accountability in the
organization. These relationships are frequently diagrammed in
organizational charts. Most organizations use some mix of structures
pyramidal, matrix or networked ones to accomplish their goals. A structure
is the formalizing of relationships, roles and responsibilities in order to
organize and perform work.
AMC ENGINEERING COLLEGE BANGALORE Page 18
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
19/79
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
20/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
Systems
SYSTEMS refer to the processes used to manage the organization.
Systems include
Management Information Systems
Innovation Systems
Performance Management Systems
Financial Systems / Capital Allocation Systems
Compensation System / Reward System
Customer Satisfaction Monitoring System
A system is defined process or set of processes that links and orders
activities to enable work to be done and goals to be achieved. System in
simple words is the formal and informal procedures including
compensation systems, management information systems and capital
allocation systems that govern everyday activity.
Companys Systems
The organization has laid down strict rules and regulations for its
employees. It follows a specific entry and exit timing for all its employees.
Each employee has to follow a specific dress code depending on his line
of work or duty. All junior staff members will have to report to the
designated senior staff member, daily attendance register to the HR
department, is duly processed at the end of each month.
Style
Style of leadership or relationship refers to the manner in which an
individual uses his or her talents, values, knowledge, judgment and
attitudes to lead and relate to others. Style expresses the persons
character. Style is the leadership approach; also the way in which the
AMC ENGINEERING COLLEGE BANGALORE Page 20
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
21/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
organizations employees present themselves to the outside world, to
suppliers and customers. In simple words, a style is the pattern of
behavior, which a leader adopts in influencing the behavior of his followers
(Subordinates) in the organization context.
Companys Style
The culture of the organization consists of two components:
Organizational Culture - the dominant values and beliefs, and norms,
which have developed over time and become relatively enduring, features
of the organization.
Management Style - This is more of what the managers do, than what they
say. How do the companys managers spend their time? What their
attention focused on? Symbolism- the creation and maintenance of
meaning is the fundamental responsibility of managers. Its Chairman who
sits at the Head Office in Cochin heads the organization. At all other
branches across the country, Regional Managers have been appointed.The Chairman will take decisions related to the group as such. Regional
Heads will take all other decisions relevant to the regions and their line of
work. Each and every manager is responsible and accountable for his or
her decisions and its subsequent implementations. By and large the
decision-makings are decentralized for day-to-day affairs. Only key
decisions are made at the Head Office.
Staff
Staffing may be defined as filling and keeping filled the positions in the
organization structure. This is done by identifying work force requirements,
inventorying the people available and recruiting, selecting, placing,
promoting, appraising, planning the careers of, compensating and training
AMC ENGINEERING COLLEGE BANGALORE Page 21
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
22/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
or otherwise developing both candidates and current job holders so that
tasks are accomplished effectively and efficiently.
Companys Staff
The human resource management is processes used to develop
managers, socialization processes and ways of shaping basic values of
management cadre, ways of introducing young recruits to the company,
and ways of helping to manage the careers of employees.
CATEGORIES DUTIES RESPONSIBILITY
HUMAN RESOURCE
MANAGER
1) To maintain the
Human Resource in the
organization
2) To maintain
personnel files of all
employees
1) To maintain the
relationship between the
employee and employer
2) To select right person
for the right job
FINANCE MANAGERTo manage the funds of
the organization
1) Planning of funds
2) Arranging for internal aswell as External Audit
MARKETING MANAGER
To know the current
happenings in the
market and make
relative changes
1) To assist the middle and
lower level staff
2) Responsibility is to
increase the sale of the
company
Skills
A skill is the ability, knowledge, understanding and judgment to
accomplish a task. Skills may be defined as what the company does best;
the distinctive capabilities and competencies that reside in their
organization.
Companys Skills
AMC ENGINEERING COLLEGE BANGALORE Page 22
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
23/79
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
24/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
Establishing a leadership position in all chosen areas of business.
In the process, become the crucial link between the industry, finance and
people.
Geojits adherence to its core values-integrity, enterprise and innovation
has earned it an enviable reputation amongst all the intermediaries and
regulatory authorities of the capital and financial markets.
AMC ENGINEERING COLLEGE BANGALORE Page 24
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
25/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
SWOT ANALYSIS
Strengths
Every organization has some strength. In some cases this is obvious, for
example, dominant market shares. In other cases, it is a matter of
perspective, for instance, a company is very small and hence has the
ability to move fast. It is important to note that companies that are in a bad
position also have strengths. Whether these strengths are adequate is anissue for analysis.
Companys Strengths
It was the first to start Depository Services through the internet in
India.
It was the first Online Trading Brokerage in India by offering trading
facilities through the Net.
It was the first Online brokerage house to launch integrated internet
trading system for both cash and derivatives segments.
It was the first to start an all-women branch exclusively for women
investors.
The company has the largest pool of certified professionals in the
Indian Stock Broking Industry.
AMC ENGINEERING COLLEGE BANGALORE Page 25
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
26/79
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
27/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
retains a positive outlook on business aspects and that the
companys initiatives will help it to grow substantially in the near
future.
Threats
No organization is immune to threats. These could be internal, such as
falling productivity, or they could be external, such as lower priced
international competition.
Companys Threats
The threats faced by the company are mainly external in nature.
The major threat to the business of the company is on account of
the developments on the political and technical fronts.
The nature of the Companys business is cyclical depending upon
the business cycle. The Companys business flourishes or remains
depressed depending on the movement of the business cycle.
Enhanced competition among the brokers with ever increasing net
work is also a risk that the company faces.
The entry of banks to broking will lead to further competition in the
business of the company.
AMC ENGINEERING COLLEGE BANGALORE Page 27
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
28/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
ANALYSIS OF FINANCIAL STATEMENT
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH
2009
Sch.
No.
For the Year
Ended
31st March 2009
For the Year
Ended
31st March 2008INCOMEIncome from operations 12 1,406,065,233 1,915,854,181Other income 13 188,166,490 121,870,403
1,594,231,723 2,037,724,584
EXPENDITURE
Employee costs 14 430,864,623 410,593,592Operating expenses 15 485,856,183 573,119,731Establishment & Other
expenses16 372,435,978 320,455,068
Interest 17 1,118,610 1,491,013Depreciation 4 101,322,357 62,096,335
1,391,597,751 1,367,755,739
PROFIT BEFORE TAX &
EXCEPTIONAL ITEM202,633,972 669,968,845
Exceptional item:
Profit on sale of long term non-
trade investment- 47,430,477
PROFIT BEFORE TAX 202,633,972 717,399,322
Provision for tax- Current 57,090,000 251,700,000- Deferred (3,843,822) (19,843,400)- Fringe Benefit 4,200,000 3,250,000
57,446,178 235,106,600NET PROFIT 145,187,794 482,292,722
Balance brought forward from
previous year564,667,164 303,530,650
PROFIT AVAILABLE FOR
APPROPRIATION709,854,958 785,823,372
Less: Appropriations
AMC ENGINEERING COLLEGE BANGALORE Page 28
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
29/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
Transfer to General Reserve 30,000,000 50,000,000Proposed Dividend on Equity
Share Capital111,705,932 146,293,609
Corporate Dividend Tax 18,151,809 24,862,5992007-08 Dividend on shares
allotted under ESOP Scheme359,141 -
160,216,882 221,156,208BALANCE CARRIED TO
BALANCE SHEET -Schedule
3
549,638,076 564,667,164
AMC ENGINEERING COLLEGE BANGALORE Page 29
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
30/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
BALANCE SHEET AS ON 31ST MARCH 2009
AMC ENGINEERING COLLEGE BANGALORE Page 30
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
31/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
ANALYSIS OF FINANCIAL STATEMENT
GEOJIT BNP PARIBAS FINANCIAL SERVICES LTD. ANNUALRESULTS
Industry: Finance - General Chairman /
ChairPerson:
A P KurianISINNo
INE007B01023
52WeekHigh
53 BookValue
12.24 FaceValue
1
BSE
Code
532285 52Week
Low
15 EPS 0.65 P/E 56.52
NSECode
GEOJITBNPP P/BV 2.99 DivYield
1.37 MarketCap.
820.54
AMC ENGINEERING COLLEGE BANGALORE Page 31
Sch.
No
As at
31st March 2009
As at
31st March 2008SOURCES OF FUNDS
Shareholders Funds
Share capital 1 223,411,864 208,990,870Monies pending allotment - 89,522,754Employee stock options
outstanding
2 14,712,153 9,285,887
Reserves and Surplus 3 2,522,467,393 2,117,726,2992,760,591,410 2,425,525,810
Deferred Tax Liability (Net) - 2,177,822TOTAL 2,760,591,410 2,427,703,632
APPLICATION OF FUNDS
Fixed Assets 4Gross Block 666,634,104 456,531,343Less: Accumulated
Depreciation
214,138,800 125,564,979
452,495,304 330,966,364
Capital Work -in- Progress 3,638,383 17,303,275Net Block 456,133,687 348,269,639Investments 5 1,504,369,055 1,471,909,936
Deferred Tax Asset (Net) 1,666,000 -Current Assets, Loans &
Advances
Sundry Debtors 6 413,734,664 647,351,693Cash & Bank Balances 7 1,441,114,513 1,260,258,310Other Current Assets 8 10,680,030 5,145,148
Loans & Advances 9 1,381,230,122 1,253,993,2823,246,759,329 3,166,748,433
Less :
Current Liabilities &
Provisions
Liabilities 10 1,893,161,610 1,886,474,259Provisions 11 555,175,051 672,750,117
2,448,336,661 2,559,224,376Net Current Assets 798,422,668 607,524,057
TOTAL 2,760,591,410 2,427,703,632
Significant Accounting Policies
and Notes to Accounts
18
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
32/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
AMC ENGINEERING COLLEGE BANGALORE Page 32
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
33/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
DIFFERENT RATIO
CURRENT RATIO = CURRENT ASSETSCURRENT LIBILITIES
EARNING PER SHARE = EARNING AFTER TAXNO. OF SHARES OUTSTANDING
NET PROFIT MARGIN RATIO = PROFIT AFTER TAXSALES
FIXED ASSET TURNOVER ASSETS = NET SALESFIXED ASSESTS
Ratios Mar ' 09 Mar ' 08 Mar ' 07
Current Ratio 1.32 1.23 2.09
Reported EPS (Rs.) 0.64 2.31 1.01
Net Profit Margin (%) 9.15 23.72 19.16Fixed Assets Turnover
Ratio 2.41 4.90 3.85
AMC ENGINEERING COLLEGE BANGALORE Page 33
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
34/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
LEARNING EXPERIENCE:-
It was a very good and pleasant experience to work with the people who
are very enthusiastic and highly dedicated in their work within the
organization.
The basic knowledge about the online trading of the shares, derivatives,
commodities etc. was taught by the dealers and the other employees too.
The manager was highly co-operative and informative regarding the stock
market and their organization details.
The details about the steps to be followed to open an account and trading
processes were provided by the back office staffs.
It was really informative, knowledge based environment to students like
us, who will get exposed to the actual practical situations about the
current market conditions.
The technical analysis about the movement of the stock prices and the
market indices values due to several factors which bring major impact on
the countrys economy.
Thus, totally a brief knowledge about the current market condition
analysis and the co-operative working nature within an organization was
taught by the company in charges.
I would thank each and every person of this organization who has helped
me directly or indirectly to complete my project successfully and get a
corporate field exposure.
At last but not the least I thank my non-staff guide in helping me out to
complete my project efficiently.
AMC ENGINEERING COLLEGE BANGALORE Page 34
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
35/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
GENERAL INTRODUCTION
Research design simply means a search for facts & answers to the
questions and problems. A research design is a purposeful scheme of action
proposed to be covered out in a sequence during the process or research
focusing on the problem to be tackled. It is a guideline for a researcher to enable
him to keep track of his action and to know whether he has moving in the right
direction in order to achieve the goals. The design has specific presentation of
the various steps in the process of research.
I. STATEMENT OF THE PROBLEM
In the current economic scenario interest rates and inflation have
high volatility in the share prices and also in stock market have made
investors confused, one finds it difficult to take decisions on investments.
This is primarily, because investments are risky in nature and investors
have to consider various factors before investing in investment avenues.
Therefore the study aims in knowing the risks & returns of every stock.
II. OBJECTIVES OF THE STUDY
Primary objective
To evaluate the performance of mutual fund scheme i,e Balanced fund-
Growth option with respect to bench mark of BSE- sensex.
Secondary objectives
To study mutual fund industry in India
To study different mutual funds schemes
To make decisions to invest in mutual funds
To know the risk and return of selected companies shares.
AMC ENGINEERING COLLEGE BANGALORE Page 35
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
36/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
III. SCOPE OF THE STUDY
One of the most important functions of the market index is to showin which direction the set of scrips are heading towards. The market index
as a benchmark against which, the investor evaluate the risk and return of
their institutional portfolio. Market indicator is one of the economic
indicators, if the index is heading upwards; it shows that economy is in a
boom, investors purchasing power is high, and market is bullish. If the
index is downtrend, it signifies slack period in the economy and market is
bearish. If the historical data is projected it shows future trends, by thehelp of this investor can forecast and take decisions accordingly to buy or
sell or to hold the securities. This research seeks to investigate and
constructively contribute to help.
The investors understand the risk and return of selected securities
in comparison with market index.
It also helps investor to understand the working of market index
and their related concepts.
IV. METHODOLOGY
The methodology followed for the current study as follows:
Research Design: is the specification of methods and procedures for acquiring
the information needed. It is the overall operational pattern or framework of the
project that stipulates what information is to be collected from which sources, by
what methods. The current study is aimed at determining the financial
performance of the firm, so descriptive design has been followed.
Geojit BNP Paribas Ltd, taken as a case study to analyse the financial
performance of a firm, for which recent 2 years financial statements selected to
calculate accounting ratios and comparing these statements over the previous
period comparative and common size analysis is used.
Sources of Data: the required information has been collected form followingsources,
AMC ENGINEERING COLLEGE BANGALORE Page 36
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
37/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
Primary sources: it is discussed with the company executives in collecting
information regarding functioning of the firm and technical aspects, as well as
with the internal guide to learn how to analyze financial performance of the
company.
Secondary data: All secondary data has been collected from the Company
Website, Internet, The required information are also collected form respective
FACT SHEETS of different companies & website of mutual fund India.com,
Global research study is also adhered.
V. LIMITATIONS OF THE STUDY
This study is based on the secondary data collected from Mutual fund
India.com information; no other efforts have been made to verify their
correctness.
Possibility of errors in data collection.
The time period for the project was limited only Ten Weeks And
information provided is limited to the extent of internet and journals.
The analysis is strictly based on the share price and unit price information.
MUTUAL FUND INDUSTRY IN INDIA
The origin of mutual fund industry in India is with the introduction of the
concept of mutual fund by UTI in the year 1963. Though the growth was slow,
but it accelerated from the year 1987 when non-UTI players entered the industry.
In the past decade, Indian mutual fund industry had seen a dramatic
improvement, both qualities wise as well as quantity wise. Before, the monopoly
of the market had seen an ending phase; the Assets under Management (AUM)
was Rs. 67bn. The private sector entry to the fund family rose the AUM to Rs.
470 bn in March 1993 and till April 2004, it reached the height of 1540 bn.
AMC ENGINEERING COLLEGE BANGALORE Page 37
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
38/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
The main reason of its poor growth is that the mutual fund industry in
India is new in the country. Large sections of Indian investors are yet to be
intellectuated with the concept. Hence, it is the prime responsibility of all mutual
fund companies, to market the product. The mutual fund industry can be broadlyput into four phases according to the development of the sector. Each phase is
briefly described as under.
First phase -1964-1978
Unit Trust of India (UTI) was established on 1963 by an Act of Parliament.
It was set up by the Reserve Bank of India and functioned under the Regulatory
and administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took
over the regulatory and administrative control in place of RBI. The first scheme
launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700
crores of assets under management.
Second phase-1987-1993 (Entry of public sector funds)
Entry of non-UTI mutual funds. SBI Mutual Fund was the first followed by
Can bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89),
Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda
Mutual Fund (Oct 92).
LIC in 1989 and GIC in 1990.The end of 1993 marked Rs.47, 004 as assets
under management.
Third phase-1993-2003 (Entry of private sector funds)
With the entry of private sector funds in 1993, a new era started in the
Indian mutual fund industry, giving the Indian investors a wider choice of fund
families. Also, 1993 was the year in which the first Mutual Fund Regulations
came into being, under which all mutual funds, except UTI were to be registered
and governed. The erstwhile Kothari Pioneer (now merged with Franklin
Templeton) was the first private sector mutual fund registered. The 1993 SEBI
(Mutual Fund) Regulations were substituted by a more comprehensive and
AMC ENGINEERING COLLEGE BANGALORE Page 38
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
39/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
revised Mutual Fund Regulations in 1996. The industry now functions under the
SEBI (Mutual Fund) Regulation 1996.
Fourth phase-since February 2003
This phase had bitter experience for UTI. It was bifurcated into two
separate entities. One is the Specified Undertaking of the Unit Trust of India with
AUM of Rs.29,835 crores (as on January 2003). The Specified Undertaking of
Unit Trust of India, functioning under an administrator and under the rules
framed by Government of India and does not come under the purview of the
Mutual Fund Regulations.
The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB
and LIC. It is registered with SEBI and functions under the Mutual Fund
Regulations. With the bifurcation of the erstwhile UTI which had in March 2000
more than Rs.76,000 crores of
AUM and with the setting up of a UTI Mutual Fund, conforming to the SEBIMutual Fund Regulations, and with recent mergers taking place among different
private sector funds, the mutual fund industry has entered its current phase of
consolidation and growth. As at the end of September, 2004, there were 29
funds, which manage assets of Rs.153108 crores under 421 schemes.
FUTURE OF MUTUAL FUNDS IN INDIA
By December 2004, Indian mutual fund industry reached Rs 1,50,537
crore. It is estimated that by 2010 March-end, the total assets of all scheduled
commercial banks should be Rs 40900 crores The annual composite rate of
growth is expected 13.4% during the rest of the decade. In the last 5 years we
have seen annual growth rate of 9%. According to the current growth rate, by
year 2010, mutual fund assets will be double.
AMC ENGINEERING COLLEGE BANGALORE Page 39
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
40/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
Some facts for the growth of mutual funds in India
100% growth in the last 6 years.
Number of foreign AMC's are in the que to enter the Indian markets like
Fidelity Investments, US based, with over US$1trillion assets under
management worldwide.
Our saving rate is over 23%, highest in the world. Only channelizing these
savings in mutual funds sector is required.
We have approximately 29 mutual funds which is much less than US
having more than 800. There is a big scope for expansion.
'B' and 'C' class cities are growing rapidly. Today most of the mutual funds
are concentrating on the 'A' class cities. Soon they will find scope in the
growing cities.
Mutual fund can penetrate rurals like the Indian insurance industry with
simple and limited products.
SEBI allowing the MF's to launch commodity mutual funds.
Emphasis on better corporate governance.
Trying to curb the late trading practices.
Introduction of Financial Planners who can provide need based advice.
AMC ENGINEERING COLLEGE BANGALORE Page 40
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
41/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
MUTUAL FUNDSMeaning
A mutual fund is a trust that pools the money of many investors -- its
shareholders -- to invest in a variety of different securities. Investments may be
in stocks, bonds, money market securities or some combination of these. Those
securities are professionally managed on behalf of the shareholders, and each
investor holds a pro rata share of the portfolio -- entitled to any profits when the
securities are sold, but subject to any losses in value as well.
A mutual fund, by its very nature, is diversified -- its assets are invested in
many different securities. Beyond that, there are many different types of mutual
funds with different objectives and levels of growth potential, furthering your
chances to diversify.
ADVANTAGES OF MUTUAL FUND INVESTMENT
Professional Management
Diversification
Convenient Administration
Return Potential
Low Costs
Liquidity
Transparency
Flexibility
Affordability
Well Regulated
AMC ENGINEERING COLLEGE BANGALORE Page 41
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
42/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
TYPES OF MUTUAL FUNDS
Mutual fund schemes may be classified on the basis of its structure and its
investment objectives.
ON THE BASIS OF ITS STRUCTURE
_Open-ended Funds
An open-end fund is one that is available for subscription all through the
year. These do not have a fixed maturity. Investors can conveniently buy and sell
units at Net Asset Value (NAV) related prices. The key feature of open-end
schemes is liquidity.
Closed-ended Funds
A closed-end fund has a stipulated maturity period which generally
ranging from 3 to 15 years. The fund is open for subscription only during a
specified period. Investors can invest in the scheme at the time of the initial
public issue and thereafter they can buy or sell the units of the scheme on the
stock exchanges where they are listed. In order to provide an exit route to the
investors, some close-ended funds give an option of selling back the units to the
Mutual Fund through periodic repurchase at NAV related prices. SEBI
regulations stipulate that at least one of the two exit routes is provided to the
investor
AMC ENGINEERING COLLEGE BANGALORE Page 42
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
43/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
ON THE BASIS OF INVESTMENT OBJECTIVE\SCHEMES OFMUTUAL FUND
Growth / Equity Oriented Scheme
The aim of growth funds is to provide capital appreciation over the
medium to long- term. Such schemes normally invest a major part of their corpus
in equities. Such 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
Income / Debt Oriented Scheme
The aim of income funds is to provide regular and steady income toinvestors. Such schemes generally invest in fixed income securities such as
bonds, corporate debentures, Government securities and money market
instruments. Such funds are less risky compared to equity schemes. These
funds are not affected because of fluctuations in equity markets.
Balanced Scheme
The aim of balanced funds is to provide both growth and regularincome as such schemes invest both in equities and fixed income securities in
the proportion indicated in their offer documents. These are appropriate for
investors looking for moderate growth. They generally invest 40-60% in equity
and debt instruments. These funds are also affected because of fluctuations in
share prices in the stock markets. However, NAVs of such funds are likely to be
less volatile compared to pure equity funds.
Money Market or Liquid Fund
These funds are also income funds and their aim is to provide easy
liquidity, preservation of capital and moderate income. These schemes invest
exclusively in safer short-term instruments such as treasury bills, certificates of
deposit, commercial paper and inter-bank call money, government securities,
etc. Returns on these schemes fluctuate much less compared to other funds.
AMC ENGINEERING COLLEGE BANGALORE Page 43
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
44/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
Gilt Fund
These funds invest exclusively in government securities. Government
securities have no default risk. NAVs of these schemes also fluctuate due tochange in interest rates and other economic factors as is the case with income
or debt oriented schemes.
Index Funds
Index Funds replicate the portfolio of a particular index such as the BSE
Sensitive index, S&P NSE 50 index (Nifty), etc, these schemes invest in the
securities in the same weightage comprising of an index. NAVs of such
schemes would rise or fall in accordance with the rise or fall in the index, thoughnot exactly by the same percentage due to some factors known as terms.
Necessary disclosures in this regard are made in the offer document of the
mutual fund scheme.
AMC ENGINEERING COLLEGE BANGALORE Page 44
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
45/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
THEORY OF PORTFOLIO MANAGEMENT
Portfolio is a combination of securities such as stocks, bonds, and money
market instruments.. Diversification of investments helps to spread risk over
many assets. A diversification of securities gives the assurance of obtaining the
anticipated return on the portfolio. In a diversified portfolio. Some securities may
not perform as expected, but others may exceed the expectation and the actual
return of the portfolio reasonably close to the anticipated one.
PROCESS OF PORTFOLIO MANAGEMENT
Portfolio management can be described as a systematic, continuous, dynamicand flexible process, which involves:
Identifying and specifying an investors objective, preferences and
constraints to develop clear investment policies.
Developing strategies by choosing optimal combinations of financial and
real assets available in the market and implementing the strategies
Monitoring the market conditions, relative asset values, and the investors
circumstances
Making adjustments in the portfolio to reflect significant changes in one or
more relevant variables
PORTFOLIO CONSTRUCTION
AMC ENGINEERING COLLEGE BANGALORE Page 45
Specification and qualification of investor
objectives, constraints and Preferences
Relevant economic, social, political
sectors and security considerations
Portfolio construction and revision, asset
allocation, portfolio optimization. security
selection, implementation and execution
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
46/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
Portfolio is a combination security such as stocks, bonds and money
marketing instruments. The process of blending together broad assets classes
so as to obtain optimum return with minimum risk is called portfolio construction.
PORTFOLIO EVALUATIONThe portfolio theory is the basis of portfolio management and relates to
the efficient portfolio investment in financial and physical assets, including
shares and debentures of companies. A portfolio of an individual or a corporate
unit is the holding of securities and investment in financial assets. These
holdings are the result of individual preferences and decisions of the holders
regarding risk and return and a host of other considerations.
Portfolio evaluation can be done under three heads, they are
Sharpe index model
Treynor model
Jensen model
SHARPE PERFORMANCE INDEX MODEL
William Sharpe has suggested a new model. Instead of comparing the
risk of each scrip to every other scrip, it can be compared with market risk, which
leads to the comparison of market return to Scrip Return. He takes into account
only the systematic Risk on the Portfolio (Beta). The two major factors which
influence his performance are the return achieved and the level of risk that the
portfolio is exposed to.
Market returns being related positively to risk, evaluation has to take into
account:
1. Rate of returns or excess return over risk free rate.
2. Level of Risk both Systematic (Beta) and Unsystematic and residual risks
through proper diversification.
Sharpe index = Rp - RfP
Rp = Average return on the portfolio
Rf = Average risk free rate
AMC ENGINEERING COLLEGE BANGALORE Page 46
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
47/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
P= Standard deviation ofportfolio return
TREYNOR PERFORMANCE INDEX
In treynors measure the risk measure of standard deviations namely, total
risk of the portfolio is replaced by market risk, measured by beta, which is not
diversification. The measure is calculated by dividing the portfolio beta (a
measure of market, or systematic risk) into the average difference between the
portfolio's returns and returns on a risk-free asset
Treynor measure = Rp - Rf
pRp = Average return on the portfolio
Rf= Average risk free rate
p = Weighted average for portfolio
AMC ENGINEERING COLLEGE BANGALORE Page 47
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
48/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
ANALYSIS, INTERPRETATION OF RESULTS
PERFORMANCE ANALYSIS OF 6 MUTUAL FUNDS OFDIFFERENT COMPANYS
1. UTI Balanced fund: The fund facts are as follows
Fund Objective.
Aims to invest in portfolio pf equity/equity related securities and fixed
income securities (Debt and money market instrument) with a view to generate
regular income together with capital appreciation.
Fund Feature.
Type of scheme: Open ended
Nature : Equity and Debt
Option : Growth
Launch date : Jan 20, 1995
NAV : 43
Corpus (Rs cr) : 726.7 as on dec. 31, 08
Entry load : Nil
Exit load : = 3 Years - NIL.
Fund Manager : Amandine Chopra
AMC ENGINEERING COLLEGE BANGALORE Page 48
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
49/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
Table 1. Showing the Portfolio investment of UTI Balanced fund
SECTOR ALLOCATION (%)
Auto & Auto Ancillaries 1.94
Bank 18.88
Cements 6.25
Computers software & education 4.68
Current Assets 2.93
Electrical & Electrical equipments 4.37
Electronics 3.51
Engineering & Industrial machinery 5.08Fertilizers & Pesticides agro chemicals 0.96
Finance 27.94
Glass & ceramics 0.73
Hotels & Restaurants 0.52
House & Constructing 0.65
Metals 0.62
Oil & Gas petroleum refine 5.5
Pharmaceuticals 2.95
Power generation, transmission & equipments 4.42
Rubber & tyres 0.86
Securities 3.38
Steel 1.13
Sugar 0.21
Telecom 1.25
Tobacco & pan masala 1.24
AMC ENGINEERING COLLEGE BANGALORE Page 49
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
50/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
Asset Allocation (%)
Equity DebtCash &
Equivalent
57.41 21.29 21.3
AMC ENGINEERING COLLEGE BANGALORE Page 50
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
51/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
TABLE 2 SHOWINGCALCULATIONOFMEAN , STANDARDDEVIATIONAND BETA FOR1 YEAR ofUTI Balanced fund
UTI
Days Ri Rm Ri-Ri Ri-Ri2 Rm-RmRm-Rm2
(Rm-Rm)(Ri-Rm)
Jan-09 -0.3725 -0.3660 -0.4148 0.1721 -0.6330 0.4007 0.2626
Feb-09 0.3875 -0.2947 0.3452 0.1191 -0.5617 0.3155 -0.1939
Mar-09 0.1779 0.4804 0.1356 0.0184 0.2134 0.0455 0.0289
Apr-09 -1.906 0.9717 -1.9491 3.7989 0.7047 0.4966 -1.3735
May-09 1.6975 1.4483 1.6552 2.7397 1.1813 1.3954 1.9553
Jun-09 0.1255 -0.0119 0.0832 0.0069 -0.2789 0.0778 -0.0232
Jul-09 0.1384 0.3580 0.0962 0.0092 0.0910 0.0082 0.0087
Aug-09 -0.066 0.0434 -0.1084 0.0117 -0.2235 0.0499 0.0242
Sep-09 0.2275 0.4156 0.1852 0.0343 0.1486 0.0220 0.0275
Oct-09 -0.2543 -0.3397 -0.29663 0.0879 -0.6067 0.3681 0.1799Nov-09 0.3695 0.3495 0.327233 0.1070 0.0825 0.0068 0.0270
Dec-09 -0.0164 0.1510 -0.05884 0.0034 -0.1159 0.0134 0.0068
0.0423 0.2671 7.1091 0.0017 3.2005 0.9305
Ri
Rm
Mean 0.0423 Mean 0.2671
Std 0.8039 Std 0.5394
Beta 0.2907
AMC ENGINEERING COLLEGE BANGALORE Page 51
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
52/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
Data Analysis
Interpretation:
The UTI has a portfolio investment in that it has invested more on finance i.e.
27.94%. The overall asset allocation is more on equity i.e. 57.41% . The
calculation of mean and standard deviation shows that 0.0423 and 0.8039
respectively. The beta is .291, risk free rate is 8% taken as on basis of
assumption. On the basis of these data the Sharpes measure is better than
Treynors measure, i.e. -.O22is greater than -.061.
AMC ENGINEERING COLLEGE BANGALORE Page 52
Measures
Sharpe = Rp-Rf / sd 0.0423-6/0.8039 -.O22
Treynor = Rp-Rf /Bp 0.0423-6/.291 -.061
Funds Mean StandardDeviation
Beta Risk free
UTI Balanced fund 0.0423 0.8039 .291 6%
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
53/79
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
54/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
Table 3 showing Portfolio investment of LIC Balanced fund
Auto & Auto Ancillaries 1.37
Bank 16.65
Current Assets 34.46
Electrical & Electrical equipments 3.9
Engineering & Industrial machinery 7.37
Entertainment 0.67
Finance 5.23
House & Constructing 3.74
Metals 0.81
Miscellaneous 0Oil & Gas petroleum refine 10.65
Power generation, transmission & 10.84
Steel 1.78
Telecom 0.32
Textiles 1.25
AMC ENGINEERING COLLEGE BANGALORE Page 54
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
55/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
Asset Allocation (%)
Equity DebtCash &
Equivalent
64.6 0 35.4
Table 4 showing calculation of mean ,standard deviation and Beta for
1 yearof LIC Balanced fund
AMC ENGINEERING COLLEGE BANGALORE Page 55
LIC
Days Ri RmRm-Rm
Rm-Rm2 Ri-Ri Ri-Ri2
(Rm-Rm)(Ri-Ri)
Jan-09 0.1027 -0.3660 -0.6330 0.4007 0.0372 0.0014 -0.0236
Feb-09 -0.0102 -0.2947 -0.5617 0.3156 -0.0757 0.0057 0.0425
Mar-09 0.2946 0.4805 0.2135 0.0456 0.2291 0.0525 0.0489
Apr-09 -1.8598 0.9717 0.7047 0.4966 -1.9253 3.7066 -1.3568
May09 1.5469 1.4483 1.1813 1.3955 1.4814 2.1945 1.7500
Jun-09 0.0620 -0.0120 -0.2790 0.0778 -0.0035 0.0000 0.0010
Jul-09 0.2728 0.3581 0.0911 0.0083 0.2073 0.0430 0.0189Aug-09 -0.0219 0.0434 -0.2236 0.0500 -0.0874 0.0076 0.0195
Sep-09 0.3639 0.4156 0.1486 0.0221 0.2984 0.0891 0.0443
Oct-09 -0.4289 -0.3397 -0.6067 0.3681 -0.4944 0.2444 0.3000
Nov-09 0.2922 0.3496 0.0826 0.0068 0.2267 0.0514 0.0187
Dec-09 0.1720 0.1511 -0.1159 0.0134 0.1065 0.0114 -0.0124
0.0655 0.2671 3.2005 0.8511Ri
Rm
Mean 0.0655 Mean 0.2671
Std 0.7632 Std 0.5394
Beta 0.2659
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
56/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
Data Analysis
Mersures
Sharpe = Rp-Rf / P .0655-.06/.7632 .0072Treynor = Rp-Rf /Bp .0655-.06/.266 .021
Interpretation:
The LIC has a portfolio investment in that it has invested more on current assets
i.e. 34.46%. The overall asset allocation is more on equity i.e. 64.66% . The
calculation of mean and standard deviation shows that 0.0655 and 0.7632
respectively. The beta is 0.2659, risk free rate is 6% taken as on basis of
assumption. On the basis of these data the Treynors measure is better than
Sharpes measure, i.e. .0072 is greater than .021.
AMC ENGINEERING COLLEGE BANGALORE Page 56
Funds Mean Standard
Deviation
Beta Risk free
LIC Balanced fund-G
0.06550.7632 0.2659
6%
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
57/79
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
58/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
table 5 showing Portfolio investment of ING Balanced fund
AMC ENGINEERING COLLEGE BANGALORE Page 58
SECTOR ALLOCATION (%)
Auto & Auto Ancillaries 3.76Bank 15.37
Computer software & education 5.59
Consumer & durables 0.73
Electrical & Electrical equipments 25.06
Engineering & Industrial machinery 2.57
Fertilizers & pesticides Agrochemicals 3.15
Finance 4.78
House & Constructing 2.06Miscellaneous 0.11
Oil & Gas petroleum refine 12.18
Pharmaceuticals 4.57
Plastic 1.15
Power generation, transmission & equipments 4.93
Shipping 0.9
Steel 2.55
Telecom 4.89
Tobacco & panmasala 3.21
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
59/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
Asset Allocation (%)
Equity DebtCash &Equivalent
74.94 0 25.06
AMC ENGINEERING COLLEGE BANGALORE Page 59
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
60/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
Table 6 showing calculation of mean, standard deviation and Beta for
1 year of ING Balanced fund
Data Analysis
Funds Mean StandardDeviation
Beta Risk free
ING Balanced fund-G 0.061 0.9906 0.1717
6%
INTERPRETATION
The ING has a portfolio investment in that it has invested more on Electrical and
electrical equiptment i.e. 25.06%. The overall asset allocation is more on equity
i.e. 74.94% . The calculation of mean and standard deviation shows that 0.061
and 0.9906 respectively. The beta is 0.1717 , risk free rate is 8% taken as on
AMC ENGINEERING COLLEGE BANGALORE Page 60
Months Ri Rm Rm-Rm Rm-Rm2 Ri-Ri Ri-Ri2
(Rm-Rm)(Ri-Ri)
Jan-09 -0.1069 -0.3660 -0.6330 0.4007 -0.1679 0.0282 0.1062
Feb-09 -0.0423 -0.2947 -0.5617 0.3155 -0.1033 0.0107 0.0580
Mar-09 0.1878 0.4804 0.2134 0.0455 0.1268 0.0161 0.0270
Apr-09 -2.6264 0.9712 0.7047 0.4966 -2.6874 7.2223 -1.8938
May-09 1.8129 1.4483 1.1813 1.3954 1.7519 3.0693 2.0695
Jun-09 0.1682 -0.0112 -0.2789 0.0778 0.1072 0.0115 -0.0299
Jul-09 0.3584 0.3580 0.0910 0.0082 0.2974 0.0885 0.0270
Aug-09 0.2831 0.0434 -0.2235 0.0499 0.2221 0.0493 -0.0496
Sep-09 0.3359 0.4156 0.1486 0.0220 0.2749 0.0756 0.0408
Oct-09 -0.2494 -0.3397 -0.6067 0.3681 -0.3104 0.0964 0.1883Nov-09 0.3729 0.3495 0.0825 0.0068 0.3119 0.0973 0.0257
Dec-09 0.2336 0.1510 -0.1159 0.0134 0.1726 0.0298 -0.0200
Sum 0.0606 0.2671 0.0011 3.2005 -0.0039 10.7950 0.5496
ING Balanced fund BSE 100 SNSEX
mean 0.061 mean 0.2671
Std 0.9906 Std 0.5394
Beta 0.1717
MersuresSharpe = Rp-Rf / P .061-.06/.991 .001Treynor = Rp-Rf /Bp .061-.06/.1717. .0058
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
61/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
basis of assumption. On the basis of these data the Sharpes measure is better
than Treynors measure, i.e. .001 is greater than .0058
4. Sundaram BNP Balanced fund Growth
Fund objective
The scheme seeks to generate capital appreciation & current
income through a mix of investment in equity & fixed income securities.
Fund Feature
Type of scheme : Open ended
Nature :Equity and Debt
Option : Growth
Launch date : May 25, 2000
NAV : 25.65
Corpus (Rs cr) : 29 as on dec 31, 08
Entry load : Nil
Exit load : Redemptions: For all investmet of 1% of he applicable NAV
If redeemed or switched out
Fund Manager : Satish ramanath,Rahul pal
AMC ENGINEERING COLLEGE BANGALORE Page 61
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
62/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
Ttable 7 Showing Portfolio investment of Sundaram BNP
Balanced fund
SECTOR ALLOCATION (%)
Auto & Auto Ancillaries 0.57
Bank 2.62
Cement 2.25
Computer software & education 4.03
Current Assets 4.13
Diversified 5.87
Electrical & Electrical equipments 6.19
Engineering & Industrial machinery 6.5
Fertilizers & pesticides Agrochemicals 1.16
Finance 15.45
House & Constructing 11.66
Oil & Gas petroleum refine 9.53
Pharmaceuticals 0.48
Steel 8.23
Telecom 1.39
AMC ENGINEERING COLLEGE BANGALORE Page 62
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
63/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
Asset Allocation (%)
Equity DebtCash &
Equivalent67.07 28.81 4.12
AMC ENGINEERING COLLEGE BANGALORE Page 63
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
64/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
Table 8 showing calculation of mean,standard deviation and Beta for
1 year of Sundaram BNP Balanced fund
Data Analysis
Funds Mean StandardDeviation
Beta Risk free
AMC ENGINEERING COLLEGE BANGALORE Page 64
Days Ri Rm Rm-Rm Rm-Rm2 Ri-Ri Ri-Ri2 (Rm-Rm)(Ri-Ri)Jan-09 -0.1167 -0.3660 -0.6330 0.4007 -0.1667 0.0278 0.10554
Feb-09 -0.0387 -0.2947 -0.5617 0.3155 -0.0887 0.0078 0.04984
Mar-09 -0.5513 0.4804 0.2135 0.0455 -0.6013 0.3616 -0.12838
Apr-09 -1.3267 0.9717 0.7047 0.4966 -1.3767 1.8953 -0.9701
May-09 2.4539 1.4483 1.1813 1.3954 2.4038 5.7787 2.8397
Jun-09 -0.4476 -0.0112 -0.279 0.0778 -0.4976 0.2476 0.1388
Jul-09 0.2213 0.3580 0.0910 0.0082 0.1713 0.0293 0.0156
Aug-09 0.2489 0.0434 -0.2235 0.0499 0.1989 0.0395 -0.0445
Sep-09 -0.1623 0.4156 0.1486 0.0220 -0.2123 0.0451 -0.0315
Oct-09 -0.2797 -0.3397 -0.6067 0.3681 -0.3297 0.1087 0.2001
Nov-09 0.3049 0.3496 0.0826 0.0068 0.2549 0.06490.0210
Dec-09 0.2903 0.1510 -0.1159 0.0134 0.2403 0.0577-0.0278
0.0496 0.2671 3.20052.1682
Ri Rm
Mean 0.0496 Mean 0.0496 0.2671
Std 0.8875 Std 0.8875 0.5394
Beta 0.6774
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
65/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
SundaramBNP Paribas 0.0496 0.8875 0.6774
6%
INTERPRETATION
The Sundaram BNP has a portfolio investment in that it has invested more on
Finance i.e. 15.45%. The overall asset allocation is more on equity i.e. 67.07% .
The calculation of mean and standard deviation shows that 0.0496 and 0.8875
respectively. The beta is 0.6774, risk free rate is 6% taken as on basis of
assumption. On the basis of these data the Sharpes measure is better than
Treynors measure, i.e. -.017 is greater than -.022.
5. Birla sun life balanced fund growth
Fund objectiveThe scheme aims to balance income requirement with growth of capital
balanced mix of investment in equity & debt.
Fund Feature
Type of scheme: Open ended
Nature : Equity and Debt
Option : Growth
Launch date : oct 4,1999
NAV : 25.78
Corpus (Rs cr) : 82.24 as on dec 31,08
Entry load : Nil
Exit load : Nil
AMC ENGINEERING COLLEGE BANGALORE Page 65
Mersures
Sharpe = Rp-Rf / P .045-.06/.8875 -.017Treynor = Rp-Rf /Bp .045-.06/..6774 -.022
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
66/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
Fund Manager : A.Balasubramania
AMC ENGINEERING COLLEGE BANGALORE Page 66
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
67/79
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
68/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
Asset Allocation (%
Table 10 showing calculation of mean, standard deviation and Beta
for 1 yearof Birla sun life Balanced fund-Growth
Days Ri Rm Rm-RmRm-Rm2 Ri-Ri Ri-Ri2
(Rm-Rm)(Ri-Ri)
Jan-09 -0.3641 -0.3660 0.0990 0.0098 -0.3911 0.1530 -0.0387
Feb-09 -0.0353 -0.2947 0.0277 0.0008 -0.0623 0.0039 -0.0017
Mar-09 -0.0246 0.4805 -0.7475 0.5587 -0.0516 0.0027 0.0385
Apr-09 -1.5783 0.9717 -1.2387 1.5344 -1.6053 2.5770 1.9885
May-09 1.7579 1.4483 -1.7153 2.9423 1.7309 2.9962 -2.9691
Jun-09 -0.0288 -0.0120 -0.2550 0.0650 -0.0558 0.0031 0.0142
Jul-09 0.2976 0.3581 -0.6251 0.3907 0.2706 0.0732 -0.1692
Aug-09 0.0506 0.0434 -0.3104 0.0964 0.0236 0.0006 -0.0073Sep-09 0.0625 0.4156 -0.6826 0.4660 0.0355 0.0013 -0.0243
Oct-09 -0.2580 -0.3397 0.0727 0.0053 -0.2850 0.0812 -0.0207
Nov-09 0.2582 0.3496 -0.6166 0.3802 0.2312 0.0535 -0.1426
Dec-09 0.1873 0.1511 -0.4181 0.1748 0.1603 0.0257 -0.0670
0.0271 0.2671 6.6243 -1.3994
Ri. Rm
Mean 0.0271 Mean 0.2671
Std 0.7368 Std 0.5394
Beta -0.2112
AMC ENGINEERING COLLEGE BANGALORE Page 68
Equity DebtCash &
Equivalent
60.29 36.55 3.16
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
69/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
Data Analysis
INTERPRETATION
The Birla Sun has a portfolio investment in that it has invested more on Banks
i.e. 21.67%. The overall asset allocation is more on equity i.e. 60.29% . The
calculation of mean and standard deviation shows that 0.0271 and 0.7368
respectively. The beta is -0.2112, risk free rate is 6% taken as on basis of
assumption. On the basis of these data the Treynors measure is better than
Sharpes measure, i.e. .156 is greater than -.045.
AMC ENGINEERING COLLEGE BANGALORE Page 69
Funds Mean StandardDeviation
Beta Risk free
Birla sun life 0.0271 0.7368 -0.2112 6%
Mersures
Sharpe = Rp-Rf / P .027-.06/.7368 -.045
Treynor = Rp-Rf /Bp .027-.06/-.2112 .156
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
70/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
6. HDFC Balanced fund growth
Fund objective
The primary objective of the scheme is to generate capital appreciationalong with current income form a combined portfolio of equity & equity related
&debt money market instruments.
Fund feature
Type of scheme : Open ended
Nature : Equity and Debt
Option : Growth
Launch date : Aug 10,2000.NAV : 25.30
Corpus (Rs cr) : 82.37 as on dec 31,08
Entry load : Nil
Exit load : 1%, if the value is less than Rs. 5crore and within 1 year, if
Nil
Fund Manager : Chirag setalvad.
AMC ENGINEERING COLLEGE BANGALORE Page 70
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
71/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
Table 11 showing Portfolio investment of HDFC Balanced fund-Growth
AMC ENGINEERING COLLEGE BANGALORE Page 71
SECTOR ALLOCATION (%)Auto & autoanciliaries 6.52
Bank 14.44
Cement 5.67
Chemicals 1.57
Computer software & education 4.97
Consumer & durables 3.31
Current assets 1.97
Electrical & electrical equipment 4.98
Engineering & Industrial machinery 3.59
Fertilizers & pesticides Agrochemicals 4.3
Finance 16.88
House & Constructing 0.91
Oil & Gas petroleum refiner 8.61
Paper 2.02
Personal care 2.52Pharmaceuticals 9.95
Plastics 0.96
Steel 0.88
Telecom 2.57
Tobacco & pan masala 3.81
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
72/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
Asset Allocation (%)
Table 12 showing calculation of mean, standard deviation and Betafor 1 year of HDFC Balanced fund-Growth
Days Ri Rm Rm-RmRm-Rm2 Ri-Ri Ri-Ri2
(Rm-Rm)(Ri-Ri)
Jan-09 -0.3616 -0.3660 0.0990 0.0098 -0.3708 0.1375 -0.0367
Feb-09 -0.3716 -0.2947 0.0277 0.0008 -0.3807 0.1449 -0.0106
Mar-09 0.2644 0.4805 -0.7475 0.5587 0.2553 0.0652 -0.1908
Apr-09 -2.0926 0.9717 -1.2387 1.5344 -2.1017 4.4173 2.6034
May-09 1.2435 1.4483 -1.7153 2.9423 1.2343 1.5236 -2.1173
Jun-09 0.1260 -0.0120 -0.2550 0.0650 0.1169 0.0137 -0.0298
Jul-09 0.4792 0.3581 -0.6251 0.3907 0.4701 0.2210 -0.2938
Aug-09 -0.0047 0.0434 -0.3104 0.0964 -0.0139 0.0002 0.0043
Sep-09 0.4501 0.4156 -0.6826 0.4660 0.4410 0.1945 -0.3010
Oct-09 -0.1156 -0.3397 0.0727 0.0053 -0.1247 0.0156 -0.0091
Nov-09 0.2962 0.3496 -0.6166 0.3802 0.2870 0.0824 -0.1770
Dec-09 0.1963 0.1511 -0.4181 0.1748 0.1872 0.0350 -0.0783
0.0091 0.2671 6.6243 -0.6366
Ri
Mean 0.0091
Rm
Mean 0.2671
Std 0.7892 Std 0.5394
Beta -0.0961
Data Analysis
AMC ENGINEERING COLLEGE BANGALORE Page 72
Equity DebtCash &
Equivalent67.59 15.41 17.00
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
73/79
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
74/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
.
Table 13 Showing Ranking of different Mutual Fund Scheme.
Table 14 Showing Points Allotments to Mutual Fund to assign
ranks.
FundsMea
n
StandardDeviatio
nBeta
Sharpe
Treynor
Points Ranks
UTI balanced fund-G 4 4 5 5 5 23 5
LIC Balanced fund-G
1 2 4 1 3 11 1
ING Balanced fund-G
2 6 3 2 4 17 4
Sundaram BNPParibas
3 5 6 3 6 23 6
Birla sun life5 1 2 6 2 16 3
HDFC Balanced-G 6 3 1 4 1 15 2
AMC ENGINEERING COLLEGE BANGALORE Page 74
Funds MeanStandardDeviation
Beta Sharpe'sTreynor'sRankings
UTI balanced fund-G 0.0423 0.8039 .291 -.O22 -.061 1
LIC Balanced fund-G 0.0655 0.7632 0.2659 .0072 .021 6
ING Balanced fund-G 0.061 0.9906 0.1717 .001 .0058 5
Sundaram BNPParibas
0.0496 0.8875 0.6774 -.017 -.022 2
Birla sun life 0.0271 0.7368 -0.2112 -.045 .156 7
HDFC Balanced-G 0.0091 0.7892 -0.0961 -.0645 .529 3
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
75/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
INTERPRETATION
1. Beta:- In this category all the funds have all most the same beta value. In
this Bearish market condition the fund, which has least Beta, is considered
has good beta value. We can evaluate the performance by comparing the
beta values. HDFC &Birla sun life both the funds have least volatile, where
has Sundaram BNP has more volatile compare to other six funds.
2. Mean:- It indicates the average return of mutual fund schemes .In this
case LIC Balanced Growth has highest value of mean and HDFC
Balanced G fund has least value.
3. Standard Deviation:- For a better return deviation should be zero with
respect to mean value. LIC Balanced Growth has highest value of mean but
at the same time Birla Sun Life has least value of Standard Deviation. INGBalanced fund-G has more deviate from its daily average return
4. Sharpe ratio:- The Sharpe Ratio is a measure of excess return per unit of
total risk. Higher the Sharpe Ratio, the better. LIC Balanced fund-G has
highest Sharpe ratio value because it is less risk than other funds
schemes.
5.Treynor ratio:- It is a measure of excess return per unit of systematic
risk. Sundaram BNP Paribas has least value of Treynor ratio it indicates thatreturn is less than risk but at the same time HDFC Balanced-G has highest
value. It means that performance of HDFC is much betterthan other funds.
AMC ENGINEERING COLLEGE BANGALORE Page 75
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
76/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
9.1 FINDINGS
1. Performance Evaluation of mutual funds on the basis of Sharpes measure by
taking into consider the Beta, Standard deviation & Average return.
The Birla sun life fund is having return value of 0.0271% whose Beta &
Standard are -0.2112& 0.7368.
ING Balanced fund-G is having highest standard deviation value of
0.9906 whose beta & return are 0.1717 & 0.061.
Sundaram BNP Paribas is having highest beta value of 0.6774 which is
having more risk compared to other nine funds..
2. Sharpes index top position to LIC Balanced fund-G with the value of .0072 &
its return is 0.0655 & the beta is 0.2659 & its standard deviation is 0.7632.
.
3. Treyners index top position to HDFC Balanced-G fund with the value of .529
& its return is 0.0091 & its standard deviation is 0.7892.
4. LIC & Birla sun life funds both are also performing well according to Treyners
index with the value of .021 & .156.
AMC ENGINEERING COLLEGE BANGALORE Page 76
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
77/79
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
78/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
CONCLUSION
After studying & analyzing different mutual fund schemes the following
conclusions can be made: The most important consideration while making
investment decision was Return aspect followed by Safety, Liquidity and
Taxability On the basis of the analysis the performance of the schemes
during the study period Can be concluded to be good those who want to
eliminate the risk element but still want to reap a better then it would be
advisable to go for debt or arbitrage schemes, which ensure both safety and
return.
So the future of mutual funds in India is bright, because it meets investors needs
perfectly this will give boost to Indian investors and will attract foreign investors
also. It will lead to the growth of strong institutional framework that can support
the capital markets in the long run
AMC ENGINEERING COLLEGE BANGALORE Page 78
8/7/2019 erformance of mutual fund scheme i,e Balanced fund-Growth option with respect to bench mark of BSE- sensex.
79/79
PERFORMANCE EVALUATION OF MUTUAL FUND SCHEME
BIBLIOGRAPHY
Books:
Security analysis and Portfolio management: Punithavathy
Pandian
Business Research metholodgy: Kotari
Key information memorandums.
Franklin Templeton KIM
Reliance mutual fund KIM
SBI mutual fund KIM
Www.amfiindia.com / Historical NAVs of mutual fund schemes
www.mutualfundindia.com
www.geojitbnpparibas.com
www.theeconomictimes.com
http://www.mutualfundindia.com/http://www.geojitbnpparibas.com/http://www.mutualfundindia.com/http://www.geojitbnpparibas.com/Top Related