A Study of Performance of Mutual Fund Schemes - Document

Transcript
1. 1 SR. NO CONTENTS PG. NO.1. CONCEPTUAL OVERVIEW: 52. RESEARCH
METHODOLOGY: 2.1 Objectives 8 2.2 Methodology 8 2.3 Significance 8 2.4 Limitations
93. THEORETICAL BACKGROUND: 3.1 Mutual Fund 11 3.2 History of Mutual Fund 13 3.3
Types of Mutual Fund 16 CASE STUDY4 22 DATA ANALYSIS5. 43 FINDINGS6.
64 REFERENCES. 70Get more projects at MBAeNotes
2. 2 CHAPTER 1 CONCEPTUAL OVERVIEW
3. 3 CONCEPTUAL OVERVIEW 1. BASICS OF MUTUAL FUND A mutual fund is a
financial intermediary that allows a group of investors to pool their money
together with a predetermined investment objective. The mutual fund will have
a fund manager who is responsible for investing the gathered money into
specific securities (stocks or bonds). When investors invest in a mutual fund,
they are buying units or portions of the mutual fund and thus on investing
becomes a unit holder of the fund.Mutual funds are considered as one of the
best available investments as compare to others they are very cost efficient and
also easy to invest in, thus by pooling money together in a mutual fund,
investors can purchase stocks or bonds with much lower trading costs than if
they tried to do it on their own. But the biggest advantage to mutual funds is
diversification, by minimizing risk & maximizing returns.Mutual funds are set up
to buy many stocks. Beyond that, investors can diversify even more by
purchasing different kinds of stocks which helps to spreading out investors
money

across

different

types

of

investments

and

hence,

reduces risk

tremendously up to certain extent.It could take you weeks to buy all these
investments, but if you purchased a few mutual funds you could be done in a
few hours because mutual funds automatically diversify in a predetermined
category of investments.
4. 4 CHAPTER 2 RESEARCH METHODOLOGY
5. 52.1) OBJECTIVES:Objective of this study is to analyze the Past Performance of
the various Mutual Funds Schemes on the Basis of there Historical NAVs and
application of statisticaltools on the same. This helps in understanding the
performance of mutual fund schemes in terms of both risk as well as return
involved.2.2 METHODOLOGY:A Sample of 5Schemes each from 5different types

of Funds is being taken.Types of Funds taken are follows: Diversified funds Large
cap funds Mid cap funds Small cap funds Sector funds Analysis has been done
by using following Statistical tools: Sharpe Ratio: It indicates the Risk-Return
Performance of Portfolio. Beta: It measures the volatility, or systematic risk, of a
security or a portfolio in comparison to the market as a whole. Standard
Deviation: It shows the historical volatility. Annualized Return: It indicate the
return on return over the period of times.2.3 SIGNIFICANCE: Able to learn the
various

analytical tools

of

Mutual Fund like

Beta,

Standard Deviation,

Compounded annual growth rate (CAGR) and Sharp Ratio. Get complete
overview of Mutual Fund industries in India. Able to know the past performance
of various Mutual Funds Schemes.
6. 6 Investors are able to know the investment pattern and market trend of investing in
various sectors.2.4 LIMITATIONS: Samples sizes is limited factor, only last fives years of
Data has been taken. Past performance may not guarantee the future return. Micro
level data have been taken in analysis; Macro level data may affect the returns.
7. 7 CHAPTER 3 THEORETICAL BACKGROUND
8. 8 3.1 Mutual Fund:A Mutual Fund is kinds of trust that pools the savings of a
number of investors,investors who share a common financial goal. 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 appreciation realized is shared by its unit holders in proportion to
the number of units owned by them. 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.3.1.1 Advantages of Mutual Fund:a) Professional Management - The basic
advantage of funds is that, they are professionally managed by well qualified
professional. Investors purchase funds because they do not have the time or the
expertise to manage their own portfolio.b) Diversification - Purchasing units in a
mutual fund instead of buying individual stocks or bonds, the investors risk is
spread out and minimized up to certain extent.The idea behind diversification is
to invest in a large number of assets so that a loss in any particular investment
is minimized by gains in others.c) Economies of Scale - Mutual fund buy and sell
large amounts of securities at a time, thus help to reducing transaction costs,

and

help

to

bring

down

the

average cost

of the

unit

for

their

investors.d)Liquidity - Just like an individual stock, mutual fund also allows

investors to liquidate their holdings as and when they want.
9. 9e) Simplicity - Investments in mutual fund is considered to be easy, compare
to other available instruments in the market, and the minimum investment is
small. Most AMC also have automatic purchase plans whereby as little as Rs.
2000, where SIP start with just Rs.50 per month basis.3.1.2 Disadvantages of
Mutual Fund:a) Professional Management- Some funds dont perform according
to the market,as their management is not dynamic enough to explore the
available opportunity in the market, thus investor loose there money.b) Costs
The biggest source of AMC income is generally from the entry & exit load which
they charge from investors, at the time of purchase. The mutual fund industries
are thus charging extra cost under layers of jargon.c) Dilution - Because funds
have small holdings across different companies, high returns from a few
investments often dont make much difference on the overall return. Dilution is
also the result of a successful fund getting too big. When money pours into
funds

that

have

had

strong

success,

the

manager

often

has

trouble findings good investment for all the new money.d) Taxes - when making
decisions about your money, fund managers don't consideryour personal tax
situation. For example, when a fund manager sells a security, capital-gain tax is
triggered, which affects how profitable the individual is from the sale. It might
have

been

more

advantageous

for

the

individual

to

defer

the capital

gains liability
10. 10 3.2 History of Mutual Fund in India:The mutual fund industry in India
started in 1963 with the formation of Unit Trust of India, at the initiative of the
Government of India and Reserve Bank of India. The history of mutual funds in
India can be broadly divided into four distinct phases:First Phase-(1964-87):Unit
Trust of India (UTI) was established on 1963 by an Act of Parliament. It was setup
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
fromthe 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 asset sunder managementsSecond Phase 1987-93(Entry of Public sector
funds):1987 marked the entry of non- UTI, public sector mutual funds set up
by public sector banks and Life Insurance Corporation of India (LIC) and General
InsuranceCorporation of India (GIC). SBI Mutual Fund was the first non- UTI
Mutual Fundestablished in June 1987 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 established
its mutualfund in June 1989 while GIC had set up its mutual fund in December
1990.At the end of 1993, the mutual fund industry had assets under
management of Rs.47,004 crores.
11. 11Third 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,
1993was the year in which the first Mutual Fund Regulations came into
being, under which all mutual funds, except UTI were to be registered and
governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton)
was the first private sector mutual fund registered in July 1993.The 1993 SEBI
(Mutual Fund) Regulations were substituted by a more comprehensive and
revised Mutual Fund Regulations in 1996. The industry now functions under the
SEBI (Mutual Fund) Regulations 1996.The number of mutual fund houses went
on increasing, with many foreign mutual funds setting up funds in India and also
the industry has witnessed several merger sand acquisitions. As at the end of
January 2003, there were 33 mutual funds with total assets of Rs. 1, 21,805
crores. The Unit Trust of India with Rs.44, 541 crores ofassets under
management was way ahead of other mutual funds.Fourth Phase since
February 2003:In February 2003, following the repeal of the Unit Trust of India
Act 1963 UTI wasbifurcated into two separate entities. One is the Specified
Undertaking of the Unit Trust of India with assets under management of
Rs.29,835 crores as at the end of January 2003, representing broadly, the assets
of US 64 scheme, assured return and certain other schemes. The Specified
Undertaking of Unit Trust of India, functioning under an administrator and under

the rules framed by Government of India and doesn't come under the purview of
the Mutual Fund Regulation The second is the UTI Mutual Fund, sponsored by
SBI, PNB, BOB and LIC. It isregistered 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
12. 12crores of assets under management and with the setting up of a UTI Mutual
Fund,conforming to the SEBI Mutual Fund Regulations, and with recent mergers
takingplace among different private sector funds, the mutual fund industry has entered
itscurrent phase of consolidation and growth.A graph indicates the growth of assets
over the years.
13. 133.3 Types of Mutual Funds Schemes:3.3.1 ON THE BASIS OF STRUCTURE:
a) Open - Ended Schemes: An open-end fund is one that is available for
subscription throughout 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, where you can buy and sell
the mutual fund unit at any time. b) Close - Ended Schemes: These schemes
have a pre-specified maturity period. One can invest directly in the scheme at
the time of the initial issue. Depending on the structure of the scheme there are
two exit options available to an investor after the initial offer period closes. First,
the Investors can transact (buy or sell) the units of the scheme on the stock
exchanges where they are listed. Second, some close-ended schemes provide
an additional option of selling the units directly to the Mutual Fund through
periodic repurchase at the schemes NAV. SEBI Regulations ensure that at least
one of the two exit routes is provided to the investor. c) Interval Schemes:
Interval Schemes are that scheme, which combines the features of open-ended
and close-ended schemes. The units may be traded on the stock exchange or
may be open for sale or redemption during pre-determined intervals at NAV
related prices.
14. 14 3.3.2 ON THE BASIS OF NATURE: a) Equity fund: These funds invest a
maximum part of their Principal amount into equities holdings. The structure of
the fund may vary different for different schemes and the fund managers
outlook on different stocks. Equity investments are meant for a longer term,
thus Equity funds rank high on the risk-return matrix. b) Debt funds: The

objective of these Funds is to invest in debt papers. Government authorities,

private companies, banks and financial institutions are some of the major
issuers of debt papers. By investing in debt instruments, these funds ensure low
risk and provide stable income to the investors. c) Balance fund: They are a mix
of both equity and debt funds. They invest in both equities and fixed income
securities, which are in line with pre-defined investment objective of the
scheme. These schemes aim to provide investors with the best of both the
Funds. Equity part provides growth and the debt part provides stability in
returns.
15. 15 3.3.3 ON THE BASIS OF INVESTMENT OBJECTIVE: a) Growth Schemes:
These Schemes are also known as equity schemes. The aim of these schemes is
to provide capital appreciation over medium to long term. These schemes
normally invest a major part of their fund in equities and are willing to bear
short-term decline in value for possible future appreciation b) Income Schemes:
These are also known as debt schemes. The aim of these schemes is to provide
regular and steady income to investors. These schemes generally invest in fixed
income securities such as bonds and corporate debentures. Capital appreciation
in such schemes may be limited c) Money Market Schemes: These Schemes aim
to provide easy liquidity, preservation of capital and moderate income. These
schemes generally invest in safer, short-term instruments, such as treasury bills,
certificates of deposit, commercial paper and inter-bank call money.
16. 16 3.3.4 Types of Funds taken for analysis: a) Large Cap Funds: These are
those types of Funds which invest their money in large Blue chip Companies,
having with a market capitalization of more than Rs 1000 crores. Investing in
large cap is a low risk-return preposition because such funds are widely research
and information available. One of the advantage of large cap funds are that they
are less volatile than mid cap and small cap funds because investors are
investing in this types of fund for a long term prospective and help to keep these
fund away from the volatility of the markets. Top Performer under this category:
1) HDFC Top 200: Its Compounded Annualized Returns of last 5 years is 24.5%.
2) Reliance Large Cap Fund: Its Compounded Annualized Returns of last 5 years
is 22.6%. 3) Franklin India Blue Chip: Its Compounded Annualized Returns of last
5 years is 20.7%. 4) Kotak 30: Its Compounded Annualized Returns of last 5

years is 19%. 5) DSPML Top 100 Equity: Its Returns of last year is 18.4%. b) Mid
Cap Funds: This types of Funds invest their money in mid sizes companies.
Companies having market Capitalization between the Rs 500crores to Rs 1000
crores are come under the mid cap companies. Mid Cap Funds are very volatile
and tends to fall if the market is fall in bad times. But this gives good return in
17. 17 short term. Top Performer under this category: 1) IDFC Premier equity
fund: Its Compounded Annualized Returns of last 5 years is 29.2%. 2)Sundaram
select mind cap fund (G): Its Compounded Annualized Returns of last 5 years is
24.8%. 3) Reliance Growth: Its Compounded Annualized Returns of last 5 years
is 23%. 4) Birla Sun life mid cap fund: Its Compounded Annualized Returns of
last 5 years is 21.9%. 5) L&T mid cap fund: Its Compounded Annualized Returns
of last 5 years is 17%. c) Small Cap Funds: These types of Funds are investing
their money in Small size companies. Companies having market capitalization
up to Rs 500 crores come under the categories of Small Cap companies. Small
Cap Funds are more volatile than Mid Cap & Large Cap Funds. Its Risk-Return
Matrix are very high. Top performer under this category: 1) L&T Small cap fund:
2) JP Morgan India smaller companies fund(G) 3) HSBC Small cap fund 4)
Sundaram select small cap fund (G): d) Sector Funds: These types of Funds are
investing their money in particular sector of the
18. 18 economy. Such as infrastructure, Banking, Retail, FMCG, ect. These Funds
are more volatile than Diversified funds having stocks of many sectors. These
Funds are high risk -reward category. These types of Funds are only for the short
term investors, who are able to take high risk ability. Top Performer funds under
this category: 1) Reliance Diversified Power sector fund (G): Its Compounded
Annualized Returns of last 5 years is 27.8%. 2) Reliance Banking fund (G): Its
Compounded Annualized Returns of last 5 years is 25.7%. 3) Reliance Pharma
(G): Its Compounded Annualized Returns of last 5 years is 25.4%. 4) ICICI
Prudential infrastructure fund (G): Its Compounded Annualized Returns of last 5
years is 20.5%. 5) UTI Banking sector fund (G): Its Compounded Annualized
Returns of last 5 years is 20.4%.
19. 19 e) Diversified funds: These are a kind of funds which invest there most of there
money in different sectors like FMCG, Infrastructure, Pharma, ect. This helps to
Diversified there Risk into various sectors. If one sector is going down then other sector

may compensate the loss. These types of funds give consistent return without much
volatility in long term. Top Performer Funds under this category: 1) IDFC Premium
Equity fund-planA (G): Its Compounded Annualized Returns of last 5 years is 26.9%. 2)
Reliance regular saving fund-Equity growth: Its Compounded Annualized Returns of
last 5 years is 26% return. 3) HDFC Top 200- Growth: Its Compounded Annualized
Returns of last 5 years is 21.5%. 4) HDFC Equity fund (G): Its Compounded Annualized
Returns of last 5 years is 21.3%. 5) Birlasunlife frontline Equity fund: Its Compounded
Annualized Returns of last 5 years is 21.2%.
20. 20 CHAPTER 4 CASE STUDY
21. 214.1 RELIANCE MUTUAL FUND:Reliance Mutual Fund is Indias leading Mutual Fund
with Quarter Average Assetsunder management (AAUM) of Rs 102066Crores.Reliance
Mutual Fund, a part of the Reliance - Anil Dhirubhai Ambani Group, is oneof the fastest
growing mutual funds in the country. RMF offers investors a well-rounded portfolio of
products to meet varying investor requirements and haspresence in 159 cities across
the country. Reliance Mutual Fund constantlyendeavors to launch innovative products
and customer service initiatives to increasevalue to investors. "Reliance Mutual Fund
schemes are managed by Reliance CapitalAsset Management Limited., a subsidiary of
Reliance Capital Limited, which holds93.37% of the paid-up capital of RCAM. The
schemes that I have taken for analysis from Reliance Mutual Fund are:4.1.1 RELIANCE
BANKING FUND (G) [under Sector Fund]: The primaryinvestment objective of the
Scheme is to seek to generate continuous returns by actively investing in equity and
equity related or fixed income securities ofcompanies in the Banking Sector.Fund
overview: Fund Types- Open Ended Investment Plan- Growth Assets sizes- Rs1466
Crores Launches date- May21, 2003 Benchmark- Bank Nifty Fund Manager- Mr. Sunil
Singhania
22. 224.1.2 RELIANCE MEDIA & ENTERTAINMENT FUND(G) [under Sector Fund]:
The primary investment objective of the Scheme is to generate consistent
returns by investing in equity / equity related or fixed income securities of
media& entertainment and other associated companies. Fund overview:
Fund Types- Open Ended Investment Plain- Growth Assets sizes- Rs112.05 crores
Launch date- Sep 27, 2007 Benchmark- NA Fund Manager- Mr. Sailesh Raj
Bhan4.1.3 RELIANCE VISION (G) [under large cap fund]: Seeks to provide
long term

capital appreciation

by

primarily

investing

in

growth

oriented

stocks.Fund overview: Fund Types- Open Ended Investment Plan- Growth Assets
Sizes- Rs 61crores Launch date- Aug8, 2007 Bench mark- BSE 100 Fund
Manager- Mr. Ashwani Kumar
23. 234.2 UTI MUTUAL FUND:UTI Mutual Fund was started in 14, January 2003 by UTI
Trustee Co, Pvt. Ltd. formanaging the schemes of UTI Mutual Fund. UTIAMC provides
professionallymanaged back office support for all business services of UTI Mutual Fund
inaccordance with the provisions of the Investment Management Agreement, the
TrustDeed, the SEBI Regulations and the objectives of the schemes.Since February 3,
2004, UTIAMC is also a registered portfolio manager under theSEBI for undertaking
portfolio management services. UTIAMC also acts as themanager and marketer to
offshore funds through its 100 % subsidiary, UTIInternational Limited, registered in
Guernsey, Channel Islands.UTIAMC presently manages a capital of over Rs. 65,
38,724.42 lakhs as on 31stDecember 2010. UTI Mutual Fund has a track record of
managing a variety ofschemes catering to the needs of every class of citizens. It has a
nationwide networkconsisting 148 UTI Financial Centers (UFCs) and UTI International
offices inLondon, Dubai and Bahrain.UTIAMC has a well-qualified, professional fund
management team, which has beenfully empowered to manage funds with greater
efficiency and accountability in thesole interest of the unit holders.UTIMF has
consistently reset and upgraded transparency standards. All thebranches, UFCs and
registrar offices are connected on a robust IT network to ensurecost-effective quick and
efficient service.The schemes that I have taken for analysis from UTI Mutual Fund
are:4.2.1 UTI INFRASTRUCTURE FUND(G) [under Sector Fund] : Investment Objective is
capital appreciation by investing in the companies engaged in thesectors like Metals,
Real Estate, Oil ; Gas, Power, Chemicals, Engineering etc.
24. 24Fund overview: Fund Types- Open Ended Investment Plan- Growth Assets
Sizes- Rs 1581crores Launch date- Apr7, 2004 Bench mark- BSE 100 Fund
Manager- Mr. Sanjay Dongre4.2.2 UTI LARGE EQUITY FUND (G) [under large cap
Fund]: The Scheme is designed specifically for large corporate investors and as
well as high net worthy investors who would like to invest large amount in
exclusive Scheme which allow sentry and exit at NAV. Fund overview: Fund
Types- Open Ended Investment Plan- Growth Assets Sizes- Rs 2170crores Launch
date- may18, 1992 Bench mark- BSE sensitive index Fund Manager- Mr. Anoop
Bhaskar

25. 254.2.3 UTI MID CAP FUND [ under Mid cap fund]: Its aims to provide to
investors growth of capital over a period of time by investing in mid cap stock
,aswell as to make periodical distribution of income from investment in stocks
ofrespective sectors of the Indian economy.Fund overview: Fund Types- Open
Ended Investment Plan- Growth Assets Sizes- Rs 375crores Launch date- Apr 07,
2004 Bench mark- CNX mid cap Fund Manager- Mr. Anoop Bhaskar
26. 264.3 SBI MUTUAL FUND:SBI Mutual Fund is Indias largest bank sponsored mutual
fund and has a trackrecord in judicious investments and consistent wealth creation.
The fund traces itslineage to SBI - Indias largest banking enterprise. The institution
has grown immensely since its inception and today it is Indias largest bank, patronized
by over80% of the top corporate houses of the country.SBI Mutual Fund is a joint
venture between the State Bank of India and Society General Asset Management, one
of the worlds leading fund managementcompanies that manages over US$ 500 Billion
worldwide.In twenty years of operation, the fund has launched 38 schemes
and successfully redeemed fifteen of them. In the process it has rewarded its
investors handsomely with consistent returns.A total of over 5.8 million investors have
reposed their faith in the wealth generationexpertise of the Mutual Fund.Today, the
fund manages over Rs. 42,100 crores of assets and has a diverse profile ofinvestors
actively parking their investments across 38 active schemes.The fund serves this vast
family of investors by reaching out to them through network of over 130 points of
acceptance, 29 investor service centers, 59 investorservice desks and 6 Investor Service
Points.SBI Mutual is the first bank-sponsored fund to launch an offshore fund
Resurgent India Opportunities Fund. The schemes that I have taken for analysis from
SBI Mutual Fund are:
27. 274.3.1SBI MAGNUM SECTOR UMBRELLA-PHARMA (G) [under sector Fund]:It
provides the investors maximum growth opportunity through equity investment
sin stocks of growth oriented sector called Pharma in long run.Fund overview: Fund
Types- Open Ended Investment Plan- Growth Assets Sizes- Rs 39.69 crores Launch
date- JUL 14, 1999 Bench mark- BSE health care Fund Manager- Mr. Sohini Andani4.3.2
SBI MAGNAM EQUITY FUND (G)[ under large cap Fund]: To provideinvestors long term
capital appreciation along with the liquidity of an open-endedscheme. The scheme will
invest in a diversified portfolio of equities of high growthcompanies.Fund overview:

Fund Types- Open Ended Investment Plan- Growth Assets Sizes- Rs 469 crores Launch
date- jan 1, 1991 Bench mark- BSE 100 Fund Manager- Mr. R Srinivasan
28.

284.3.3 SBI

MAGNUM

MID

CAP

FUND

[under

mid cap

Fund]:

To

provideinvestors with opportunities for long term growth in capital along with
the liquidityof an open ended scheme by investing predominantly in a well
diversified basket ofequity stocks of companies and in debt and money market
instruments.Fund overview: Fund Types- Open Ended Investment Plan- Growth
Assets Sizes- Rs 303crores Launch date- Mar 17.2005 Bench mark- CNX MID CAP
Fund Manager- Mr. Sohini Andani
29. 294.4 FRANKLIN TEMPLETION MUTUAL FUND:Franklin Templeton Investments is
one of the largest financial services groups in theworld based at San Mateo, California
USA. The group has US$ 642.3 billion inassets under management globally.Franklin
Templeton has offices in 33 locations across India and manages averageAUM of Rs.
42142.21 crores for over 22 lakhs investors (as on September 30, 2010).The schemes
that I have taken for analysis from FRANKLIN TEMPLETION MutualFund are:4.4.1
FRANKLIN TEMPLETION FMCG FUND [under Sector Fund]: Thescheme aims to achieve
long term capital appreciation through exclusively investingin shares of Fast Moving
Consumer Goods Companies. Fund overview: Fund Types- Open Ended Investment
Plan- Growth Assets Sizes- Rs 51crores Launch date- Mar 31.1999 Bench mark- NA
Fund Manager- Anil Prabhudas4.5 JM FINANCIAL MUTUAL FUND:It is one of India s first
private sector mutual funds-an integral part of the first wavethat commenced
operations in 1993-94.It is a part of JM Financial Group , which hasa rich heritage, built
over three decade.
30. 30Groups origins can be traced back to the 1950s when the Kampani family
began

toget

involved

in

Indias

then

capital

markets.

JM

Financial

&

Investment Consultancy Services was founded on September 15, 1973. JM

Financial

Asset

Management

Private

Limited

started

operations

in

December1994 with a simultaneous launch of three funds-JM Liquid Fund (now

JM Income Fund), JM Equity Fund and JM Balanced Fund. Today, JM Financial
Mutual Fundoffers a bouquet of funds that caters to the diverse needs of both its
institutional andindividual investors.Its mission is to manage risk effectively
while generating top quartile returns acrossall product categories. We believe
that to cultivate investor loyalty, we must providea safe haven for their

investments. We are focussed on helping our investors realizetheir investment

goals through prudent advice, judicious fund management, accurateresearch,
and strong systems of managing risk scientifically.The schemes that I have
taken for analysis from JM FINANCIAL Mutual Fund are:4.5.1 JM LARGE CAP FUND
(G) [under large cap Fund]: The Scheme aims toprovide long term capital
appreciation from a portfolio that is investedpredominantly in equity and equity
related instruments in the Healthcare sector. Fund overview: Fund Types- Open
Ended Investment Plan- Growth Assets Sizes- Rs5.1 crores Launch date- Jun
9.2004 Bench mark- BSE Health care sector Fund Manager- Mr. Sanjay Chhabaria
31. 314.5.2 JM MID CAP FUND [under mid cap Fund]: The investment objective of
theScheme is to provide capital appreciation by primarily investing in mid cap
fund.Fund overview: Fund Types- Open Ended Investment Plan- Growth Assets
Sizes- Rs9.7 crores Launch date- Jun 9.2004 Bench mark- BSE 500 Fund
Manager- Mr. Sanjay Chhabaria4.5.3 JM SMALL & MID CAP FUND (G)[under small
cap Fund]: The investmentobjective of the Scheme is to provide capital
appreciation by primarily investing insmall cap and mid-cap stocks. Fund
overview: Fund Types- Open Ended Investment Plan- Growth Assets Sizes- Rs 58
crores Launch date- Mar 9, 2007 Bench mark- CNX MID CAP Fund Manager- Mr.
Sanjay Chhabaria
32. 324.6BIRLA SUNLIFE MUTUAL FUND:Birla Sun Life Asset Management
Company Ltd. (BSLAMC) is a joint venturebetween the Aditya Birla Group and
the Sun Life Financial Services Inc. of Canada.The joint venture brings together
the Aditya Birla Groups experience in the Indianmarket and Sun Lifes global
experience.Birla Sunlife Mutual Fund is established in 1994 .It offer a range of
investmentoptions, including diversified and sector specific equity schemes,
fund of fundschemes, hybrid and monthly income funds, a wide range of debt
and treasuryproducts and offshore funds. BSLAMC is one of the largest team of
researchanalysts in the industry, dedicated to tracking down the best companies
to invest in.BSLAMC strives to provide transparent, ethical and research-based
investments andwealth management services.The schemes that I have taken for
analysis from BIRLA SUNLIFE Mutual Fundare:4.6.1BIRLASUNLIFE ADVANTAGE
FUND [under Large cap Fund]: To achievelong-term growth of capital through
investments mainly in equity and equity relatedinstruments. Fund overview:

Fund Types- Open Ended Investment Plan- Growth Assets Sizes- Rs 414 crores
Launch date- Feb 24, 1995 Bench mark- BSE Sensitive index Fund Manager- Mr.
Ajay Argal
33. 334.6.2BIRLASUNLIFE SMALL & MID CAP FUND [under small cap Fund]:It objective is
to generate consistent long-term capital appreciation by investingpredominantly in
equity and equity related securities of companies considered to besmall and mid cap. It
may also invest a certain portion of its corpus in fixed incomesecurities including
money market instruments, in order to meet liquidityrequirements from time to
time.Fund overview Fund Types- Open Ended Investment Plan- Growth Assets Sizes- Rs
189 crores Launch date- Apr 9, 2007 Bench mark- CNX MID CAP Fund Manager- Mr.
Ankit Sancheti
34. 344.7 KOTAK MAHINDRA MUTUAL FUND:Kotak Mahindra is one of Indias leading
financial institutions, offering completefinancial solutions that encompass every sphere
of life. From commercial banking, tostock broking, to mutual funds, to life insurance, to
investment banking, the groupcaters to the financial needs of individuals and
corporate.The group has a net worth of Rs.7,911 crore and employs around 20,000
employeesacross its various businesses, servicing around 7 million customer accounts
through adistribution network of 1,716 branches, franchisees and satellite offices
across morethan 470 cities and towns in India and offices in New York, California,
SanFrancisco, London, Dubai, Mauritius and Singapore.Kotak Mahindra Asset
Management Company Limited (KMAMC), a wholly ownedsubsidiary of KMBL, is the
Asset Manager for Kota Mahindra Mutual Fund(KMMF). KMAMC started operations in
December 1998 and has over 10 Lacinvestors in various schemes. KMMF offers
schemes catering to investors withvarying risk - return profiles and was the first fund
house in the country to launch adedicated gilt scheme investing only in government
securities.The schemes that I have taken for analysis from KOTAK MAHINDRA
MutualFund are:4.7.1 KOTAK MAHINDRA MID CAP FUND [under mid cap Fund]:
Theinvestment objective of Kotak Midcap is to generate capital appreciation from
adiversified

portfolio

of

equity

&

equity

related

securities.

The

scheme

predominantlyinvests in companies in the mid market capitalization segment across

sectors. Thescheme is well positioned to provide the benefit of potential growth
offered by midcap stocks which are likely to become tomorrows large caps.Fund
overview:

35. 35 Fund Types- Open Ended Investment Plan- Growth Assets Sizes- Rs 254
crores Launch date- jan 28, 2005 Bench mark- CNX Nifty junior Fund ManagerMr. Pankaj Tibrewal4.7.2 KOTAK EQUITY FOF [under Diversified fund]: To
generate long-termcapital appreciation from a portfolio created by investing
predominantly in open-ended diversified equity schemes of Mutual Funds
registered with SEBI.Fund overview: Fund Types- Open Ended Investment PlanGrowth Assets Sizes- Rs 49 crores Launch date- Aug 09, 2004 Bench mark- NA
Fund Manager- Mr. Sajit Pisharodi
36. 364.8 SUNDARAM BNB PARIBAS MUTUAL FUND:Sundaram Mutual, identifying an
investment opportunity long before it manifests asone, is the heart of our business
belief.Being in the financial sector for a long time has given us a great understanding of
theIndian economy and that guides us while picking the companies for its Funds.
Onceit unearth a potential opportunity, its Financial Experts spend countless time
toresearch the companies, to see what will deliver the best returns for your money.
Itsfinancial experts are fine tuned to the larger global picture and all its complexities
aswell as the intricacies of the Indian market. We track global economic trends
andmarket behaviour to better understand the domestic markets. We are constantly
onthe trail of promising opportunities and once identified, a new theme is
thoroughlyresearched and tested on various platforms before being offered to the
investingpublic.The schemes that I have taken for analysis from SUNDARAM BNB
PARIBASMutual Fund are:4.8.1 SUNDARAM SELECT MID CAP FUND (G) [under mid cap
fund]:Sundaram Select Mid Cap Fund is an open ended equity scheme that seeks
capitalappreciation by investing in diversified stocks that are generally termed as mid
-caps.Fund overview: Fund Types- Open Ended Investment Plan- Growth Assets SizesRs 2294 crores Launch date- Jul 19, 2002 Bench mark- BSE Mid cap index Fund
Manager- Mr. Satish Ramanathan
37. 374.8.2SUNDARAM BNB PARIBAS SELECT SMALL CAP FUND(G)[small capfund]: The
primary investment objective of the scheme is to generate consistentlong-term returns
by investing predominantly in equity/equity related instruments ofcompanies that can
be termed as small cap.Fund objective: Fund Types- Open Ended Investment PlanGrowth Assets Sizes- Rs 364 crores Launch date- Jan 24, 2006 Bench mark- BSE Small
cap index Fund Manager- Mr. Satish Ramanathan4.8.3 SUNDARAM BNB PARIBAS
GROWTH FUND (G)[under Diversifiedfund]:It seeks to achieve capital appreciation by

investing in a well diversified basket ofequities and equity-related instruments. Income

generation would be the secondaryconsideration.Fund Overview: Fund Types- Open
Ended Investment Plan- Growth Assets Sizes- - Launch date- - Bench mark- - Fund
Manager- 38. 384.9 L & T MUTUAL FUND:L&T Mutual Fund is one of the premier mutual funds in
India that serves theinvestment needs of investors through a suite of acclaimed mutual
fund schemes.With world class investment management practices and an equally
competent fundmanagement team, L&T Mutual Fund helps its investors reach their
financial goals.Whether you are an individual investor, institution, or finance
professional, you cangain from the products and expertise that we offer.L&T Mutual
Fund is backed by one of the most trusted and valued brands, L&TFinance
incorporated as Non Banking Finance Company in November 1994, hasearned the
trust of thousands of investors by adapting well to the changing marketingdynamics
and emerging as a profitable venture despite the turbulences in theFinancial market
over the past few years.The schemes that I have taken for analysis from L & T Mutual
Fund are:4.9.1 L & T SMALL CAP FUND [under small cap fund]: The scheme seeks
togenerate long term capital appreciation by investing predominantly in equity
andequity related instruments of companies with small cap.Fund overview: Fund
Types- Open Ended Investment Plan- Growth Assets Sizes- Rs 20 crores Launch dateDec 20, 2007 Bench mark- BSE Small cap index Fund Manager- Mr. Anant Deep Katre
39. 394.10 TATA MUTUAL FUND:Tata Mutual Fund has earned the trust of lakhs of
investors with its consistentperformance and world-class service.It manages around
Rs20,854.00 crores (average AUM for the quarter of October-December 2010) worth of
assets across its varied offerings. Tata Mutual Fund offersan investment option for
everyone, whether you are a businessman or salariedprofessional, a retired person or
housewife, an aggressive investor or a conservativecapital builder.The Tata Asset
Management philosophy is centered on seeking consistent, long-termresults. Tata
Asset Management aims at overall excellence, within the framework oftransparent and
rigorous risk controls.Tata Mutual Fund offers investors a broad range of managed
investment products invarious asset classes and risk parameters, with operational
flexibility to suit theirvaried investment needs.It offer a wide range of services to assist
investors have a fulfilling and rewardingfinancial planning experience with us. It have
designed our services keeping in mindthe needs of our investors, giving them a smooth

and hassle-free financial planningprocess.The schemes that I have taken for analysis
from TATA Mutual Fund are:1.10.1 TATA DIVIDENT YIELD FUND (G) [under Diversified
fund]: ToProvide income distribution and / or medium to long term capital gains
by investing predominantly in high dividend yield stocks.Fund overview: Fund TypesOpen Ended Investment Plan- Growth Assets Sizes- Rs 177 crores Launch date- Oct 27,
2004
40. 40 Bench mark- BSE Sensitive index Fund Manager- Mr. Mahendra Jajoo / Sachin
Relekar4.11 HDFC MUTUAL FUND:HDFC Asset Management Company Ltd (AMC) was
incorporated under theCompanies Act, 1956, on December 10, 1999, and was
approved to act as an AssetManagement Company for the HDFC Mutual Fund by SEBI
vide its letter dated July3, 2000.In terms of the Investment Management Agreement,
the Trustee has appointed theHDFC Asset Management Company Limited to manage
the Mutual Fund. The paidup capital of the AMC is Rs. 25.161 crore. The AMC is
managing 28 open-endedschemes of the Mutual Fund some are HDFC Growth Fund,
HDFC Equity Fund,
41. 41HDFC Top 200 Fund, HDFC Capital Builder Fund, HDFC Core & Satellite
Fund,HDFC Premier Multi-Cap Fund, and HDFC Index Fund.The AMC is also managing 7
closed ended Schemes some are HDFC Long TermEquity Fund, HDFC Infrastructure
Fund, and HDFC Fixed Maturity Plans - SeriesXI, HDFC Fixed Maturity Plans - Series
XII.The AMC is also providing portfolio management / advisory services.The schemes
that I have taken for analysis from HDFC MUTUAL FUND are:4.11.1 HDFC TOP200 FUND
[under Diversified fund]: It objective is to generatelong term capital appreciation by
investing in a portfolio of equities and equitylinked instruments drawn from the BSE
200 Index.Fund Overview: Fund Types- Open Ended Investment Plan- Growth Assets
Sizes- Rs. 9425 crores Launch date- Oct 27, 2004 Bench mark- BSE 200 index Fund
Manager- Mr. Prashant Jain4.12 RELIGARE MUTUAL FUND:Religare Mutual Fund is
managed by Religare Asset Management CompanyLimited, a subsidiary of Religare
Securities Limited (RSL). The AMC wasincorporated on May 20, 2005 and the mutual
fund was set up on July 24, 2006.It manages Assets around Rs104 billion dollars.
Religare Asset Management aims toserve investment needs of individual investors,
corporate and institutions throughmutual funds and sub-advised portfolios. Its product
portfolio is managed byindividually focused management teams to create optimum

balance and results. Theyare committed to providing financial care and top class
service. They subscribe to
42. 42sustainable business models and process that factor in the dynamism of the
businessin fast changing market scenarios.The schemes that I have taken for analysis
from Religare Mutual Fund are: 4.12.1 RELIGARE SMALL &MID CAP FUND [under small
cap fund]: The Scheme seeks to provide long term capital appreciation by investing in a
portfolio that is predominantly constituted of equity and equity related instruments of
mid and small cap companies. Fund overview: Fund Types- Open Ended Investment
Plan- Growth Assets Sizes- Rs 22.4 crores Launch date- Jan 7, 2008 Bench mark- NA
Fund Manager- Mr. Vinay Paharia
43. 43 CHAPTER 5 DATA ANALYSIS5.1 Diversified Funds:1) CAGR Kotak Reliance
Sundaram Tata Dividend HDFCYr/Schemes Equity Diversified Balance yield TOP200 FOF
Power fund
44. 44Last 1 yrs 103.78 86.03 96 71.52 102.25Last3 yrs 20.3 13.08 32.07 12.61 20.7Last
5yrs 19.14 21.11 40.16 16.47 29.14 CAGR 120 100 Percent(%) 80 60 40 last 1 yrs 20 last3
yrs 0 last 5yrs Tata Kotak Reliance Sundaram HDFC dividend Equity FOF diversified
balance TOP200 yield power fund SchemesINTERPRETATIONS:a) In last 1yr HDFC, Tata
and Reliance gave maximum return of 102.2%, 103.7%and 96% respectively, Followed
by Kotak and Sundaram by 86.03% and 71.5%respectively.b) In last 3 & 5 yrs, Reliance
gave maximum return against its competitors.2) Standard DeviationYrs/Schemes Tata
Kotak Reliance Sundaram HDFC Dividend Equity Diversified Balance fund TOP200 yield
FOF powerLast 1 yrs 0.071419205 0.09292427 0.101266115 0.068953248 0.0932788
45. 45Last 3 yrs 0.099664831 0.09966483 0.111054683 0.082246954 0.0968572Last
5yrs 0.087110732 0.11201375 0.09839249 0.085491183 0.0841035 STANDARD
DEVIATION 0.12 0.1 0.08 (in Rs) 0.06 0.04 last 1 yrs 0.02 last3 yrs 0 last 5yrs Tata
divident Kotak Equity Reliance Sundaram HDFC yield FOF diversified balance fund
TOP200 power SchemesINTERPRETATIONS:a) As far as the Standard Deviation in last 1
yrs is concern, it is high in Reliance,which is 0.1 and low in Sundaram (0.068).b) In last
3years, again Reliance has high Standard Deviation about 0.011 followedby Kotak and
Tata by0.09 both.c) But in last5 yrs, Kotak is highly volatile followed by Reliance and
Tata.3) BetaYrs/Schemes Tata Kotak Reliance Sundaram HDFC Dividend Equity
Diversified Balance fund TOP200 yield FOF Power 0.685522556 0.91563 3 0.970784506
0.839178531 0.889744

46. 46 Last 1 yrs Last 3 yrs 0.173402004 0.1508907 0.100171515 0.094652253 0.127550
Last 5yrs -0.01188823 0.1985720 0.970784506 0.120147547 0.167198 BETA 1.2 1 0.8
0.6 (in Rs) 0.4 last 1 yrs 0.2 last3 yrs 0 last 5yrs -0.2 Tata Kotak Reliance Sundaram HDFC
divident Equity FOF diversified balance TOP200 yield power fund Schemes
INTERPRETATIONS: a) In last 1 yr Reliance has high Beta about 0.97 as compare to
others. b) In last 3 yrs all the funds are less volatile with Nifty, but in last 5 yrs Reliance
has high Beta of 0.97, so it has high volatility. c) Tata dividend has low Beta in all the
year. 4) Sharpe RatioYrs/Schemes Tata Kotak Reliance Sundaram HDFC TOP200
Dividend Equity Diversified Balance
47. 47 yield FOF power fundLast 1 yrs 2.82288 1.92184 1.941195962 1.78291329
2.189613153Last3 yrs 0.54053 0.36523 0.75575441 0.34489246 0.551588391Last 5yrs
0.46532 0.68236 0.991355024 0.50778455 0.82590418 SHARPE RATIO 3 2.5 2 (in Rs) 1.5
1 last 1 yrs 0.5 last3 yrs 0 Tata divident Kotak Equity Reliance Sundaram HDFC last 5yrs
yield FOF diversified balance fund TOP200 power Schemes INTERPRETATIONS: a) As far
as last 1 yr is concern, Tata has highest Sharpe ratio (2.8), followed by HDFC (2.1),
Reliance (1.94), Kotak (1.92) and Sundaram (1.7) . b) In last 3 yrs & 5 yrs, Reliance has
highest Sharpe Ratio against its competitors. c) Tata has low Beta in all the years. 5.2
Sector Fund 1) CAGR (in %)
48.

48Yr/Schemes

Reliance

Franklin

UTI

SBI

Reliance

Banking(G)

FMCG(G)

infrastructure(G) magnum Media&Ent(G) Pharma(G)Last1 yrs 120.55 68.57 66.77 112.96

18.94Last3 yrs 30.21 17.52 10.89 3.61 2.07Last 5yrs 25.37 21.73 23.23 12.31 88.77 CAGR
140 Percentage(%) 120 100 80 60 40 20 0 last1 yrs last3 yrs last 5yrs Schemes
INTERPRETATIONS: a) In last1 years, Reliance Banking and SBI gave highest return of
120% and 112.9% respectively against its competitors. b) In last 3 years, Reliance
Banking gave highest return of 30.2%. And In last 5 yr, Reliance Media & Ent give
maximum return of 88.7%. 2) Standard Deviation
49.

49Yr/Schemes

infrastructure(G)

Reliance
magnum

Franklin

UTI

Media&Ent(G)

SBI

Reliance

banking(G)

FMCG(G)

Pharma(G)Last1

yrs

0.128943375

0.054102785

0.094154994

0.095626797

0.107992407Last3

yrs

0.115829428

0.060318612

0.104597968

0.109212679

0.118757826Last

5yrs

0.102489584

0.060205922 0.09752141 0.09470864 0.104554454 STANDARD DEVIATION 0.14 0.12 0.1

(in Rs) 0.08 0.06 0.04 0.02 0 last1 yrs last3 yrs last 5yrs Schemes INTERPRETATIONS: a)
In all the three years is concern Reliance Banking has highest Standard Deviation, so it

is highly volatile as compare to its competitors. b) Franklin FMCG is less volatile as

compare to its competitors, so it is less Risky to invest in this Fund. 3) Beta
50. 50Yr/Schemes Reliance Franklin UTI SBI magnum Reliance banking(G) FMCG(G)
infrastructure(G)

Pharma(G)

Media&Ent(G)Last1

yrs

1.230722931

0.162919496

0.914220081

0.85286803

1.031589083Last3

yrs

0.213887277

0.054444645

0.096699523

0.130467228

0.231784503Last

5yrs

0.248025961

0.093340307

0.145949941 0.168794462 0.26664004 BETA 1.4 1.2 1 (in Rs) 0.8 0.6 0.4 0.2 0 last1 yrs
last3 yrs last 5yrs Schemes INTERPRETATIONS: a) In last 1 yr, Reliance Banking has high
Beta of 1.2, so it is highly volatile as compare to its competitors. b) Overall, Franklin
FMCG is less volatile as compare to its competitors, so it is less Risky to invest in this
Fund. 4) Sharpe ratio
51. 51Yr/Schemes Reliance Franklin UTI SBImagnum Reliance banking(G) FMCG(G)
infrastructure(G)

Pharma(G)

Media&Ent(G)Last1

yrs

1.867210636

2.60860683

1.550735632

1.919779766

1.738190637Last3

yrs

0.701616713

0.59406659

0.296815592

0.125784902

-0.044702739Last

5yrs

0.642094973

0.76680298

0.611539329 0.339000122 0.40984207 SHARPE RATIO 3 2.5 2 (in Rs) 1.5 1 0.5 0 last1 yrs
-0.5 last3 yrs last 5yrs Schemes INTERPRETATIONS: a) In last 1 yr Franklin FMCG has
highest Sharpe Ratio of 2.6 as compare to its competitors, so it is good indicator for it.
b) In last 3 yrs Reliance Banking & Franklin FMCG has high Sharpe Ratio of 0.7 and
0.5respectively and Reliance Media & Ent. has lowest of -0.4. c) In last 5 yrs, Franklin has
highest Sharpe ratio of 0.7 and SBI has lowest of 0.3. 5.3 Large cap Funds 1) CAGR
52. 52Yrs/Schemes Reliance UTI JM large Birlasunlife SBI magnum vision equity(G) cap
adv fund eqlast 1 yrs 88.44 82.65 48.28 14.48 94.09last 3 yrs 14.1 16.34 0.8 8.24
37.61last 5 yrs 23.39 18.02 7.94 18.16 21.11 CAGR 100 90 80 Percentage(%) 70 60 50 40
last 1 yrs 30 last 3 yrs 20 10 last 5 yrs 0 Reliance UTI JM largecap Birlasunlife SBI
magnum vision equity(G) adv fund eq SchemesINTERPRETATIONS:a) In last 1 yr, CAGR
of SBI, Reliance vision & UTI has high by94%, 88.4%, and82.6% respectively, as compare
to its competitors.b) In last 3&5 yrs SBI gave highest return of about 37.6% &21.1%
respectively.c)

Overall,

Birlasunlife

adv.

Fund

gave

least

return.2)

Standard

DeviationYrs/Schemes Reliance UTI JM large Birlasunlife SBI magnum

53. 53 vision equity(G) cap adv fund eqLast 1 yrs 0.09991376 0.0744288 0.0783383
0.115973242 0.097667168Last 3 yrs 0.10018448 0.0833512 0.0888638 0.112693896
0.105668883Last 5 yrs 0.08864059 0.0780083 0.0813522 0.096871642 0.095151301

STANDARD DEVIATION 0.14 0.12 Percentage(%) 0.1 0.08 0.06 last 1 yrs 0.04 0.02 last 3
yrs 0 last 5 yrs Reliance UTI JM Birlasunlife SBI vision equity(G) largecap adv fund
magnum eq SchemesINTERPRETATIONS:a) In last 1, 3&5 years, Birlasunlife adv. fund
has high Standard Deviation, so it ishighly volatile as compare to its competitors.b)
Overall, UTI equity is least volatile fund among its competitors, so it is better toinvest in
such a less risky fund.
54. 543) BetaYrs/Schemes Reliance UTI JM large Birlasunlife SBI magnum vision
equity(G) cap adv fund eqLast 1 yrs 0.17248455 0.7078600 0.7575292 1.128608674
0.93092074Last 3 yrs 0.13229572 0.1190345 0.0703577 0.165711517 0.139890907Last
5 yrs 0.17248455 0.1607937 0.1049985 0.206156923 0.182037128 BETA 1.2 1 0.8 in(Rs)
0.6 last 1 yrs 0.4 last 3 yrs 0.2 last 5 yrs 0 Reliance UTI JM largecap Birlasunlife SBI
magnum vision equity(G) adv fund eq SchemesINTERPRETATIONS:a) In last 1 yr,
Birlasunlife has a high Beta of 1.1 as compare to its competitors,which shows high
volatility.b) In last 1yr, Reliance vision has low Beta (0.17)c) JM large cap in last 3&5 yrs
also has low Beta about 0.7 &0.1 respectively, so it isless risky and safer to invest.
55. 554) Sharpe RatioYr/Schemes Reliance UTI JM large cap Birlasunlife SBI magnum eq
vision equity(G) adv fundLast 1 yrs 2.194170308 0.01409560 0.3844196 1.741029813
1.80743058Last

yrs

0.377029792

0.46218302

-0.0158758

0.237019813

0.200605215Last 5 yrs 0.646034027 0.5301262 0.2093977 0.485836378 0.53402252

SHARPE RATIO 2.5 2 Percentage(%) 1.5 1 last 1 yrs last 3 yrs 0.5 last 5 yrs 0 Reliance UTI
equity(G)

JM

largecap

Birlasunlife

SBI

magnum

-0.5

vision

adv

fund

eq

SchemeINTERPRETATIONS:a) In last 1 yr Reliance vision, SBI eq& Birlasunlife has high

Sharpe Ratio about2.1, 1.8 &1.7respectively, which shows good indicators.UTI has low
which is.01.b) In last 3&5 years, JM large cap has a less Sharpe ratio about -.01
&0.2respectively, which shows its poor Performance.
56. 565.4 Midcap Fund1) CAGRYrs/Schemes JM midcap SBI magnum UTI Kotak
Sundaram mid cap midcap midcap select mid capLast1yrs 110 119.2 129.86 109.6
139.49Last3 yrs 7.9 1.2 13.14 5.2 15.94Last 5yrs 14.54 16.86 16.49 17.19 28.38 CAGR
160 140 120 100 (in Rs) 80 60 last1yrs 40 20 last3 yrs 0 last 5yrs JM midcap SBI magnum
UTImidcap

Kotak

Sundaram

mid

cap

midcap

select

mid

cap

SchemesINTERPRETATIONS:a) In last 1 yr, Sundaram midcap gave highest return about

139.4%, followed byUTI,SBI and JM by 129.8%, 119%, and 110% respectively, and Kotak

gave lowest retunof 109.6%b) In last 3&5 yrs, Sundaram gave highest return about
15.9% & 28.3% respectively.And SBI gave lowest return.
57. 572) Standard DeviationYrs/Schemes JM SBI magnum UTI midcap Kotak Sundaram
midcap mid cap midcap select mid capLast1yrs 0.1182776 0.156138896 0.1040285
0.1010611 0.150454556Last3 yrs 0.1129622 0.144536727 0.1173093 0.1118037
0.130397639Last 5yrs 0.102009 0.229935443 0.105609 0.09941857 0.109763284
STANDARD DEVIATION 0.25 0.2 0.15 in (Rs) 0.1 last1yrs 0.05 last3 yrs 0 last 5yrs JM
midcap SBI magnum UTImidcap Kotak Sundaram mid cap midcap select mid cap
SchemesINTERPRETATIONS:a) In last 1 yr, Standard Deviation of SBI midcap has very
high about 0.15whichshows high volatility. Followed by Sundaram about 0.11.b) In last
3& 5yrs, alsoSBI shows high Standard Deviation about 0.14 & 0.22.
58. 583) BetaYrs/Schemes JM midcap SBI magnum UTI Kotak Sundaram mid cap
midcap midcap select mid capLast1yrs 1.143846 1.512159602 0.998759 0.9419961
1.428028244Last3 yrs 0.154830 0.187077319 0.157491 0.1782199 0.184278143Last
5yrs 0.192531 0.229935443 0.207778 0.21723842 0.21284543 BETA 1.6 1.4 1.2 1 (in Rs)
0.8 0.6 last1yrs 0.4 0.2 last3 yrs 0 last 5yrs JM midcap SBI magnum UTImidcap Kotak
midcap Sundaram mid cap select mid cap SchemesINTERPRETATIONS:a) In last 1 yr,
Beta of SBI and Sundaram has high about 1.5 &1.4 respectively, ascompare to its
competitors .UTI and Kotak shows low Beta about0.99 &0.94respectively.b) In last 3 & 5
years. All the Funds showed almost equal Beta.
59. 59 4) Sharpe RatioYrs/Schemes JM SBI magnum UTI midcap Kotak Sundaram select
midcap mid cap midcap mid caplast1yrs 1.883957 1.590404948 2.3660246 2.1446380
1.81157006last3 yrs 0.230390 0.143719771 0.3559378 0.1710649 0.115906618last 5yrs
0.388877 0.435169362 0.437773 0.48133648 0.682191305 SHARPE RATIO 2.5 2 1.5 (in
Rs) 1 last1yrs 0.5 last3 yrs 0 last 5yrs JM midcap SBI magnum UTImidcap Kotak midcap
Sundaram mid cap select mid cap Schemes INTERPRETATIONS: a) In last 1year Sharpe
Ratio of UTI is highest about 2.3 followed by Kotak(2.1),JM(1.88),Sundaram(1.81) and
SBI(1.5). b) In last 3 years, UTI & JM shows highest Sharpe ratio about 0.35 & 0.23
respectively. SBI showed lowest about 0.14. c) In last 5 years, Sundaram (0.68) shows
highest Sharpe ratio and JM (0.38) shows lowest.
60. 605.5 Small cap Fund1) CAGRYrs/Schemes Sundaram JM small Birlasunlife L&T
small Religare small cap & mid cap small&mid cap cap small&mid capLast 1yr 9.4
113.48 140.75 119.77 133.77Last 3 yrs 6.51 -17.27 4.26 -14.99 7.36Last 5 yrs CAGR 160

140 120 100 80 in(Rs) 60 last 1yr 40 last 3 yrs 20 0 last 5 yrs -20 Sundaram JM small &
Birlasunlife L&T small Religare -40 smallcap mid cap small&mid cap small&mid cap cap
SchemesINTERPRETATIONS:a) In last 1 yr, Birlasunlife small midcap gave highest return
about140.7% followedby Religare small& midcap, L&T & JM about 133.7, 119.7%, and
113.4%respectively.b) In last 3 yr, Religare small cap give highest return about 7.3%
against itscompetitors.JM small cap gave -17%.
61. 612) Standard DeviationYrs/Schemes Sundaram JM small & Birlasunlife L&T Religare
small cap mid cap small&mid small small&mid cap cap capLast1yr 0.052904985
0.14490943 0.119329293 0.102897 0.084923964Last3 yrs 0.098308914 0.160988697
0.122212359 0.138513 0.11489531Last5 yrs - - - - - STANDARD DEVIATION 0.18 0.16
0.14 0.12 (in Rs) 0.1 0.08 0.06 last 1yr 0.04 0.02 last 3 yrs 0 last 5 yrs Sundaram JM small
& Birlasunlife L&T small Religare smallcap mid cap small&mid cap small&mid cap cap
SchemesINTERPRETATIONS:a) JM small cap Funds have high Standard deviation, which
shows high volatility ascompare to its competitors.b) Sundaram small cap shows least
standard deviation, which shows its strength.
62. 623) BetaYrs/Schemes Sundaram JM small & Birlasunlife L&T Religare small cap mid
cap small&mid small small&mid cap cap capLast 1yr 0.757755664 1.277975835
1.132571413 0.923006 0.791631306Last3 yrs 0.156519161 0.233322213 0.179818858
0.491886 0.442382937Last5 yrs - - - - - BETA 1.4 1.2 1 in(Rs) 0.8 0.6 last 1yr 0.4 0.2 last 3
yrs 0 last 5 yrs Sundaram JM small & Birlasunlife L&T small Religare smallcap mid cap
small&mid cap small&mid cap cap SchemesINTERPRETATIONS:a) In last 1 yr, there is
high Beta in JM small&mid cap (1.2) and low in Sundaramsmall cap(0.7)b) In last 3
yrs,L&T and Religare shown high Beta about 0.49&0.44. Sundaram haslow Beta about
0.15.
63. 634) Sharpe RatioYrs/Schemes Sundaram JM small & Birlasunlife L&Tsmall Religare
small cap mid cap small&mid cap small&mid cap capLast 1yr 0.740297547 1.624960177
2.216180638

2.258105041

2.902924217Last

yrs

-0.52788846

-0.16756146

0.165643299 -0.32554 0.323392115Last 5 yrs - - - - - SHARPE RATIO 3.5 3 2.5 2 (in Rs) 1.5
last 1yr 1 last 3 yrs 0.5 0 last 5 yrs -0.5 Sundaram JM small & Birlasunlife L&T small
Religare

-1

smallcap

mid

cap

small&mid

cap

small&mid

cap

cap

SchemesINTERPRETATIONS:a) In last 1 yr, Religare small& midcap shows highest

Sharpe ratio of 2.9 against itscompetitors, whereas Sundaram shows lowest, which

is0.74.b) In last 3 yrs,again Religare shows high Sharpe ratio of 0.32 and low in
Sundaramabout -.052.
64. 64 CHAPTER 6 FINDINGS
65. 65 6. Performance Sheets: Basis on Compounded annual growth rate (CAGR)
6.1.1Performance Sheet (Diversified Funds) Fig (in %)Schemes CAGR CAGR CAGR Rank1
yr Rank 2yrs Rank 3yrs (1yrs) (3yrs) (5yrs)1.Tata dev 100 20.3 19.14 2 3 42.Kotak eq
86.03 13.08 21.11 4 4 33.Reliance 100 32.07 40.16 3 1 1diversified4.Sundaram Bal 71.52
12.61 16.47 5 5 55.HDFC 102.25 20.7 29.14 1 2 2TOP50 6.1.2 Performance Sheet (Sector
Funds) Fig (in %)Schemes CAGR CAGR CAGR Rank1 yr Rank 2yrs Rank 3yrs (1yrs) (3yrs)
(5yrs)1.Reliance Banking 120.55 251.23 25.37 1 1 22.Franklin FMCG 68.68 17.52 21.73 3
4 43.UTI infrastructure
66.77 10.89 23.23 3 34.SBI Pharma 112.96 3.61 12.31 2 5 55.Reliance 18.94
20.9 88.77 5 2 1Media&Ent Get more projects at MBAeNotes
66. 66 6.1.3Performance Sheet (Large cap Funds) Fig (in %)Schemes CAGR
CAGR CAGR Rank1 yr Rank 2yrs Rank 3yrs (1yrs) (3yrs) (5yrs)1.Reliance Vision
88.44 14.1 23.39 2 3 12.UTI Eq 82.65 16.34 18.02 3 2 43.JM largecap 48.58 0.8
7.94 4 5 54.Birlasunlife adv 14.48 8.24 18.16 5 4 35.SBI Eq 94.19 37.61 21.11 1
1 2 6.1.4Performance Sheet (Midcap Fund) Fig (in %)Schemes CAGR CAGR CAGR
Rank1 yr Rank 2yrs Ran (1yrs) (3yrs) (5yrs) k 3yrs1JM midcap 110 7.9 14.54 4 3
52.SBI mid cap 119.2 1.2 16.86 3 5 33.UTI midcap 129.86 13.14 16.49 2 2
44.Kotak midcap 109.6 5.2 17.19 5 4 25.Sundaram midcap 139.49 15.94 28.38
111
67. 67 6.1.5Performance Sheet (Small cap Fund) Fig (in %)Schemes CAGR( CAGR CAGR
Rank1 yr Rank 2yrs Rank 3yrs 1yrs) (3yrs) (5yrs)1.Sundaram small 9.4 6.51 5 2 -cap2.JM
small&mid cap 113.48 -17.27 4 5 -3.Birlasunlife small 140.75 4.26 1 3 -midcap4.L&T
smallcap 119.75 -14.99 3 4 -5.Religare small 133.77 7.36 2 1 -midcap
68. 686.2Finding &suggestions6.2.1Diversified Fundsa) The Performance of Tata
Dividend & HDFC top200 are better than their competitors because there Sharpe ratio
& CAGR are relatively high against their competitors, there Beta & Standard Deviation
both are low.b) The Performance of Reliance Diversified & Sundaram are poor because
of therelow Sharpe ratio & CAGR. Also they are more risky as compare to there
competitorsbecause of there high Beta.c) I would suggest giving first priority to HDFC
TOP200 and second to Tata Dividend.6.2.2 Sector Fundsa) The Performance of Reliance

Banking on the Basis of CAGR is outperforming ascompare to its competitors. Its

Sharpe ratio is also good after Franklin FMCG.b) Those who want to take high return as
well as risk Reliance Banking is good forthem because its Beta is also high among its
competitors.c) Those who want to keep them safe and able to take less risk, for them
Franklin isbetter option.6.2.3 Large cap Fundsa) SBI & Reliance vision both have good
CAGR and Sharpe ratio, But Reliance havevery less Beta as compare to SBI, so Reliance
should be the priority for investment.
69. 69b) JM large cap & Birlasunlife adv both is poor performer as far as CAGR
andSharpe ratio is concern, so try to avoid them.6.3.4 Mid cap Fundsa) Sundaram
select mid cap is the top performer in term of CAGR and Sharpe ratio,but have
relatively high Beta, It is good for Risk taking investors.b) UTI is second best performer,
also have low Beta as compare to Sundaram selectmid cap, so it is good for safe
investment.c) CAGR & Sharpe ratio of SBI is relatively low and its Beta and Standard
Deviationare very high as compare to its competitors, so try to avoid it.6.3.5 Small cap
Fundsa) Sharpe ratio and CAGR of Religare are relatively high, also its Beta is low, and
soit is good to invest in this fund.b) Sundaram small cap has very low CAGR & Sharpe
ratio.
70. 70 CHAPTER 6 REFRENCES
71. 716.1 Books:
1) Donald E Fischer ,Security Analysis & Portfolio Management
6.2) Web sites:
1) http://www.bluechipindia.co.in/
2) http://www.franklintempletonindia.com
3) http://www.utimf.com
4) http://www.hdfcfund.com/
5) http://mutualfund.birlasunlife.com
6) http://reliancemutual.com/
7) http://investopedia.com
8) http://money.rediff.com
9) http://moneycontrol.com