Você está na página 1de 150

A REPORT

ON

(A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN


INDIA)

BY

JAGJEET KAUR

0943970021

A Report submitted in partial fulfillment of

the requirements of

MBA program

Distribution list:

Prof NISHANT DUBLISH (MGBS GZB.) MR .


NIKHIL GIROTRA

BRANCH HEAD
(SBIMF,NOIDA)
A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 2


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

ACKNOWLEDGEMENT

A journey is easier when you travel together. Interdependence certainly helps and is valuable
than independence.

It is my pleasure to thank many people who made the working on this project possible.

It is difficult to overstate my gratitude to my company guide Mr Nikhil Girotra who had


always been there to guide and motivate me all throughout my project-writing period. With his
enthusiasm, inspiration, and his great efforts to explain various concepts clearly and simply, in an
absolutely different manner, I was motivated to write this project

I am grateful to all my faculty guide Prof NISHANT DUBLISH who kept an eye on the
progress of my work and were always available when I needed his advices.

And at last but not the least, I would not forget my parents who had been always there by my
side to morally support me.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 3


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

TABLE OF CONTENTS

Page no

1. Abstract 5
2. Objective of the project 6
3. Company profile 7-9
4. Investments 10-15
5. Mutual fund industry 16-44
6. Balanced Mutual Fund 45-46
7. Name of funds selected in sample for analysis 47
8. Data 48-91
9. Research methodology used 92-96
10. Analysis 97-127
11. Conclusion 128
12. Recommendation 129
13. Bibliography 130
14. Questioner 131-132
15. Annexure ----

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 4


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

ABSTRACT
Mutual Fund is one of the most growing sectors in the industry. The summer training at SBI
MUTUAL FUND is a tool to get an experience of practical corporate world so that one could
understand the working environment and experience the fluctuations of the corporate world in
just a span of 3 months.
As mentioned in the Project Proposal submitted earlier, I am doing a project where-in I am
supposed to give a Comparative analysis of the balanced mutual funds. The project will include
detail study in the mutual fund industry and will provide the basic knowledge of it in which a
comparison between the top 21 balanced schemes(hybrid-equity oriented) would also be done
on the basis of their past performance taking into consideration various measuring parameters
which are taken by the consideration of investors response like fund manager exp, beta factor,
portfolio PE, diversification of portfolio return%, NAV change and Sharpe ratio. All these
measures are compulsory in order to fulfill the objectives of the project. The experience of
working with ‘SBIMF’ has given me significant knowledge and exposure to various arenas of
corporate working culture. As the spirit of a project lies in not merely getting theoretical
knowledge, but to get practical experience of the industry and to prepare ourselves for
tomorrow’s managerial trust. SBIMF has enabled me to relate our theoretical knowledge to the
practical scenarios., the organization have provided all the inputs required for us to groom our
managerial skills

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 5


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

OBJECTIVE
 To understand all about mutual fund industry

 What an investor check to know the performance before investing in a fund

 How the fund manager have the impact on the fund

 How the diversification has the impact on the fund

 How the volatility in stock market has the impact on the performance of the fund

 To know which is the best balanced mutual fund floated in the market

 To give a recommendation to the investors that which is the safest balanced fund to
invest

 To give a suggestion to my company where our fund lacks in the market & how it should
be rectified

 After all as a management trainee I will try to gain some valuable knowledge from my
seniors in the organization as well as from my faculty guide which will help me in the
future.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 6


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

COMPANY PROFILE
It is India’s largest bank sponsored mutual fund and has an enviable track record in judicious
investments and SBI Mutual Fund consistent wealth creation.

The fund traces its lineage to SBI - India’s largest banking enterprise. The institution has grown
immensely since its inception and today it is India's largest bank, patronized by over 80% of the
top corporate houses of the country.

SBI Mutual Fund is a joint venture between the State Bank of India and Société Générale Asset
Management, one of the world’s leading fund management companies that manages over US$
500 Billion worldwide.

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 consistently high
returns. . SBI Mutual is the first bank-sponsored fund to launch an offshore fund – Resurgent
India Opportunities Fund

A total of over 4.6 million investors have reposed their faith in the wealth generation expertise of
the Mutual Fund.

Schemes of the Mutual fund have consistently outperformed benchmark indices and have
emerged as the preferred investment for millions of investors and HNI’s.

Today, the fund manages over Rs. 28500 crores of assets and has a diverse profile of investors
actively parking their investments across 36 active schemes.

The fund serves this vast family of investors by reaching out to them through network of over
130 points of acceptance, 28 investor service centers, 46 investor service desks and 56 district
organizers.

AWARDS

SBI Mutual Fund (SBIMF) has been the proud recipient of the ICRA Online Award - 8 times,
CNBC TV - 18 Crisil Award 2006 - 4 Awards, The Lipper Award (Year 2005-2006) and most
recently with the CNBC TV - 18 Crisil Mutual Fund of the Year Award 2007 and 5 Awards for
our schemes.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 7


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

SCHEMES OFFERED

EQUITY SCHEMES

The investments of these schemes will predominantly be in the stock markets and endeavor will
be to provide investors the opportunity to benefit from the higher returns which stock markets
can provide. However they are also exposed to the volatility and attendant risks of stock markets
and hence should be chosen only by such investors who have high risk taking capacities and are
willing to think long term. Equity Funds include diversified Equity Funds, Sectoral Funds and
Index Funds. Diversified Equity Funds invest in various stocks across different sectors while
sectoral funds which are specialized Equity Funds restrict their investments only to shares of a
particular sector and hence, are riskier than Diversified Equity Funds. Index Funds invest
passively only in the stocks of a particular index and the performance of such funds move with
the movements of the index.

Magnum COMMA Fund


Magnum Equity Fund
Magnum Global Fund
Magnum Index Fund
Magnum MidCap Fund
Magnum Multicap Fund
Magnum Multiplier Plus 1993
Magnum Sector Funds Umbrella
MSFU - FMCG Fund
MSFU - Emerging Businesses Fund
MSFU - IT Fund
MSFU - Pharma Fund
MSFU - Contra Fund
SBI Arbitrage Opportunities Fund
SBI Blue chip Fund
SBI Infrastructure Fund - Series I
SBI Magnum Taxgain Scheme 1993
SBI ONE India Fund
SBI TAX ADVANTAGE FUND - SERIES I

DEBT SCHEMES

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 8


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Debt Funds invest only in debt instruments such as Corporate Bonds, Government Securities and
Money Market instruments either completely avoiding any investments in the stock markets as in
Income Funds or Gilt Funds or having a small exposure to equities as in Monthly Income Plans
or Children's Plan. Hence they are safer than equity funds. At the same time the expected returns
from debt funds would be lower. Such investments are advisable for the risk-averse investor and
as a part of the investment portfolio for other investors.

Magnum Children`s Benefit Plan


Magnum Gilt Fund
Magnum Gilt Fund (Long Term)
Magnum Gilt Fund (Short Term)
Magnum Income Fund
Magnum Income Plus Fund
Magnum Income Plus Fund (Saving Plan)
Magnum Income Plus Fund (Investment Plan)
Magnum Insta Cash Fund
Magnum InstaCash Fund –Liquid Floater Plan
Magnum Institutional Income Fund
Magnum Monthly Income Plan
Magnum Monthly Income Plan Floater
Magnum NRI Investment Fund
SBI Capital Protection Oriented Fund - Series I
SBI Debt Fund Series
SDFS 15 Months Fund
SDFS 90 Days Fund
SDFS 13 Months Fund
SDFS 18 Months Fund
SDFS 24 Months Fund
SDFS 30 DAYS
SDFS 30 DAYS
SDFS 60 Days Fund
SDFS 180 Days Fund
SDFS 30 DAYS
SBI Premier Liquid Fund
SBI Short Horizon Fund
SBI Short Horizon Fund - Liquid Plus Fund
SBI Short Horizon Fund - Short Term Fund

BALANCED SCHEMES

Magnum Balanced Fund invests in a mix of equity and debt investments. Hence they are less risky
than equity funds, but at the same time provide commensurately lower returns. They provide a
good investment opportunity to investors who do not wish to be completely exposed to equity

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 9


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

markets, but is looking for higher returns than those provided by debt funds.

Magnum Balanced Fund


Magnum NRI Investment Fund - FlexiAsset Plan
INVESTMENTS

“INVESTMENT IS A SCIENCE AND NOT AN ART”

Savings form an important part of the economy of any nation. With the savings invested in
various options available to the people, the money acts as the driver for growth of the country.
Indian financial scene too presents a plethora of avenues to the investors. Though certainly not
the best or deepest of markets in the world, it has reasonable options for an ordinary man to
invest his savings.

Investments, unlike works of art, cannot afford the luxury of experimenting. Investing is not
guesswork. It takes more than just a 'tip', it needs training to plan, instinct to pick and sheer
intellect to make it work for the investor. Human nature is fickle, his wants keep changing.

An investment can be described as perfect if it satisfies all the needs of all investors. So, the
starting point in searching for the perfect investment would be to examine investor needs. If all
those needs are met by the investment, then that investment can be termed the perfect
investment.

Most investors and advisors spend a great deal of time understanding the merits of the thousands
of investments available in India. Little time, however, is spent understanding the needs of the
investor and ensuring that the most appropriate investments are selected for him.

The Investment Needs of an Investor

The investment needs of an investor are simply his lifestyle needs converted into financial terms.
These include the normal living expenses, accommodation, food, as well as education, health,
recreation, transport, special occasions like marriages, festivals etc. These needs are defined not
only in current terms but also over the rest of the life. These needs tend to remain the same over

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 10


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

the years. It is the current lifestyle and the lifestyle desired in future that determines the attitude
of investor towards investments.

By and large, most investors have eight common needs from their investments: 1. Security of
Original Capital; 2. Wealth Accumulation; 3. Comfort Factor; 4. Tax Efficiency; 5. Life Cover;
6. Income; 7. Simplicity; 8. Ease of Withdrawal; 9. Communication.

 Security of original capital: The chance of losing some capital has been a primary need.
This is perhaps the strongest need among investors in India, who have suffered regularly
due to failures of the financial system.

 Wealth accumulation: This is largely a factor of investment performance, including


both short-term performance of an investment and long-term performance of a portfolio.
Wealth accumulation is the ultimate measure of the success of an investment decision.

 Comfort factor: This refers to the peace of mind associated with an investment.
Avoiding discomfort is probably a greater need than receiving comfort. Reputation plays
an important part in delivering the comfort factor.

 Tax efficiency: Legitimate reduction in the amount of tax payable is an important part of
the Indian psyche. Every rupee saved in taxes goes towards wealth accumulation.

 Life Cover: Many investors look for investments that offer good return with adequate
life cover to manage the situations in case of any eventualities.

 Income: This refers to money distributed at intervals by an investment, which are usually
used by the investor for meeting regular expenses. Income needs tend to be fairly
constant because they are related to lifestyle and are well understood by investors.

 Simplicity: Investment instruments are complex, but investors need to understand what is
being done with their money. A planner should also deliver simplicity to investors.

 Ease of withdrawal: This refers to the ability to invest long term but withdraw funds
when desired. This is strongly linked to a sense of ownership. It is normally triggered by
a need to spend capital, change investments or cater to changes in other needs. Access to
a long-term investment at short notice can only be had at a substantial cost.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 11


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

 Communication: This refers to informing and educating investors about the purpose and
progress of their investments. The need to communicate increases when investments are
threatened.

It is also pertinent to differentiate between needs and wants. Wants can be described as transient
needs. Wants focus on the short-term, and often lead to long-term investment disappointment.

 Security of original capital is more important when performance falls.


 Performance is more important when investments are performing well.
 Failures engender a desire for an increase in the comfort factor.

Perfect investment would have been achieved if all the above-mentioned needs had been met to
satisfaction. But there is always a trade-off involved in making investments. As long as the
investment strategy matches the needs of investor according to the priority assigned to them, he
should be happy.

The Ideal Investment strategy should be a customized one for each investor depending on his
risk-return profile, his satisfaction level, his income, and his expectations. Accurate planning
gives accurate results. And for that there must be an efficient and trustworthy roadmap to achieve
the ultimate goal of wealth maximization.

Power of Compounding –

The Power of Compounding can give astounding results. The chart shows how saving at a more
than average rate of 20% can make the savings increase substantially over the next 20 years. A 1
lakh savings today can increase to close to Rs. 38 lakhs in 20 years time. Here we assume that
annual compounding is done at the same rate as the investment rate throughout the period of
investment.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 12


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Designing an investment strategy is a structured process that begins with analyzing the needs of
the customer and profiling them according to the risk appetite of the investor. The next step
involves internalizing and mapping these needs and matching them with the available avenues
for investing. Next in line is evaluating and selecting a basket of low cost-high return investment
products that matches the best with the investor’s profile. This basket of investment products
represents the optimum portfolio of the investor. As is rightly been said that Perfection is a
journey, not a destination; continuous monitoring and Portfolio Management is the most
important task.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 13


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Investment Avenues in India

Traditionally, Indian investors have been going for investment avenues ranging from low return-
low risk Fixed Deposits to high risk-high-return Share Markets. Till nineties, investors were
enjoying high interest rates in the range of 16-22 % on Fixed Deposits. With the outset of a
liberalized era and opening of Indian economy interest rates softened and Fixed Deposits were
no longer the preferred choices of many investors. They looked out beyond the traditional
products. These risk savvy investors turned to the stock market which had been giving good
returns on select scrips.

Conventionally, Indian investors were investing in the following avenues:

Fixed Deposits – They cover the fixed deposits of varied tenors offered by the commercial banks
and other non-banking financial institutions. These are generally a low risk prepositions as the
commercial banks are believed to return the amount due without default. By and large these FDs
are the preferred choice of risk-averse Indian investors who rate safety of capital & ease of
investment above all parameters. Largely, these investments earn a marginal rate of return of 6-
8% per annum.

Government Bonds – The Central and State Governments raise money from the market through
a variety of Small Saving Schemes like national saving certificates, Kisan Vikas Patra, Post
Office Deposits, Provident Funds, etc. These schemes are risk free as the government does not
default in payments. But the interest rates offered by them are in the range of 7% - 9%.

Money-back Insurance - Insurance in India is mostly sold and bought as investment products.
They are preferred because of their add-on benefits like financial life-cover, tax-savings and
satisfactory returns. Even if one does not manage to save money and invest regularly in financial
instruments, with insurance, the policyholder has no choice. If he does not pay his premiums on
time, his insurance cover will lapse. Money-back Insurance schemes are used as investment
avenues as they offer partial cash-back at certain intervals. This money can be utilized for
children’s education, marriage, etc.

Endowment Insurance – These policies are term policies. Investors have to pay the premiums
for a particular term, and at maturity the accrued bonus and other benefits are returned to the
policyholder if he survives at maturity.

Bullion Market – Precious metals like gold and silver had been a safe haven for Indian
investors since ages. Besides jewellery these metals are used for investment purposes also. Since
last 1 year, both Gold and Silver have highly appreciated in value both in the domestic as well as
the international markets. In addition to its attributes as a store of value, the case for investing in
gold revolves around the role it can play as a portfolio diversifier.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 14


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Stock Market – Indian stock markets particularly the BSE and the NSE, had been a preferred
destination not only for the Indian investors but also for the Foreign investors. This is evident
from the fact that FIs are buying huge stakes on the Indian bourses. Although Indian Markets had
been through tough times due to various scams, but history shows that they recovered very fast.
Many scrips had been value creators for the investors. People have earned fortunes from the
stock markets, but there are people who have lost everything due to incorrect timings or selection
of fundamentally weak companies.The psyche of Indian investors has changed a lot in the past
few years. They are becoming more risk-savvy. But side by side they have become more
demanding too. Various institutions have come up with a variety of innovative products catering
to the requirements of a variety of investors’. These include:

Mutual Funds - There is a collection of investors in Mutual funds that have professional fund
managers that invest in the stock market collectively on behalf of investors. Mutual funds offer a
better route to investing in equities for lay investors. A mutual fund acts like a professional fund
manager, investing the money and passing the returns to its investors. All it deducts is a
management fee and its expenses, which are declared in its offer document.

Unit Linked Insurance Plans - ULIPs are remarkably alike to mutual funds in terms of their
structure and functioning; premium payments made are converted into units and a net asset value
(NAV) is declared for the same. In traditional insurance products, the sum assured is the corner
stone; in ULIPs premium payments is the key component.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 15


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

CONCEPT OF MUTUAL FUND


A mutual fund is a trust that pools the savings of a number of investor who share a common
financial purpose or goal. The investors buy units in the total pool of money. The money thus
collected from all investors or unit holders is further invested in capital market instruments such
as shares, debentures, and various other types of securities. This money then generates capital
appreciation from the money invested in capital markets. The investments of the total pool of
money are done by a fund manager of the Mutual fund according to the fund objectives. The
capital appreciation generated by fund is distributed among the unit holders depending upon their
share or the number of units held by them. Mutual fund is like a vehicle for investing in stocks
and bonds together with a small amount of money.

For an example if an investor decides to buy a stock say BHEL which trades close to Rs.2500,
then to buy 100 shares, the investor would have to invest Rs.250,000 which every retail investor
may not be able to invest. Moreover, his risk will also be high as the investment is not
diversified, thus the risk also increases. If the share price falls the investor looses his money. So,
for those investors who do not have high risk taking ability and wealth to invest such huge
money, for those investors, mutual funds are a safer investment.

FLOWCHART OF MUTUAL FUND

INVESTORS

Investors pool their


money with mutual Returns transferred to
fund stocks and bonds investors

MUTUAL FUND

Mutual fund invests in Returns (Profit/loss) on


different stocks and stocks and bonds
bonds

MARKET SECURITIES

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 16


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

HISTORY OF MUTUAL FUND


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 the. 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 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)

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 Insurance Corporation of India (GIC).
SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987 followed by
Canbank 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 mutual fund 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.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 17


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

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 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 mergers and 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 of assets 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 was bifurcated
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 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 assets under management
and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 18


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

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.

Currently, apart from UTI there are 10 bank and institution sponsored mutual funds and 24
private sector mutual funds.

The mutual fund sector in India comprises –

A) Unit Trust Of India


I. Administrator, for government guaranteed schemes
II. UTI AMC, for market related schemes

B) Bank sponsored

I. BOB Asset Management Co. Ltd.


II. Canbank Investment Management Services Ltd.
III. PNB Asset Management Co. Ltd.
IV. SBI Funds Management Ltd.

C) Institutions

I. GIC Asset Management Co. Ltd.


II. IDBI Principal Asset Management Co. Ltd.
III. (to shift to “JV – Predominantly Foreign”, with Principal buying
out IDBI’s stake)
IV. IL & FS Asset Management Co. Ltd.
V. Jeevan Bima Sahayog Asset Management Co. Ltd.

D) Private Sector

1. Indian
I. BenchMark Asset Management Co. Ltd.
II. Cholamandalam Asset Management Co. Ltd.
III. Escorts Asset Management Ltd.
IV. J.M. Capital Management Ltd.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 19


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

V. Kotak Mahindra Asset Management Co. Ltd.


VI. Reliance Capital Asset Management Ltd.

2. Joint Ventures - Predominantly Indian


I. Birla Sun Life Asset Management Pvt. Co. Ltd.
II. Credit Capital Asset Management Co. Ltd.
III. DSP Merrill Lynch Investment Managers (India) Ltd.
IV. First India Asset Management Private Ltd.
V. HDFC Asset Management Company Ltd.
VI. Sundaram Newton Asset Management Company
VII. Tata TD Waterhouse Asset Management Private Ltd.

3. Joint Ventures - Predominantly Foreign


I. Alliance Capital Asset Management (India) Pvt. Ltd.
II. Deutsche Asset Management (India) Pvt. Ltd.
III. Dundee Investment Management & Research (Pvt.) Ltd.
IV. (in the process of winding up all schemes)
V. HSBC Asset Management (India) Private Ltd.
VI. ING Investment Management (India) Pvt. Ltd.
VII. Morgan Stanley Investment Management Pvt. Ltd.
VIII. Prudential ICICI Management Co. Ltd.
IX. Standard Chartered Asset Mgmt Co. Pvt. Ltd.
X. Sun F & C Asset Management (I) Pvt. Ltd.
XI. Templeton Asset Management (India) Pvt. Ltd.
XII. Zurich Asset Mgmt. Company(I) Pvt. Ltd.
XIII. (in the process of being taken over by HDFC AMC)
XIV. Miraie asset mutual fund

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 20


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Growth of Mutual fund industry since inception

SOURCE:AMFI

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 21


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Asset under management under various AMCs


SOURCE : AMFI

Assets Under Management (AUM) as at the end of Feb-2011 (Rs in Lakhs)


Average AUM For The Month
Mutual Fund Name Excluding Fund
Fund Of Funds
Of Funds
1. ABN AMRO Mutual Fund 751549.13 24299.73
2. AIG Global Investment Group
340055 0
Mutual Fund
3. Benchmark Mutual Fund 495472.31 0
4. Birla Sun Life Mutual Fund 3470409.17 1848.17
5. BOB Mutual Fund 8469.73 0
6. Canara Robeco Mutual Fund 292977.62 0
7. DBS Chola Mutual Fund 316509.36 0
8. Deutsche Mutual Fund 1440485.42 7078.38
9. DSP Merrill Lynch Mutual Fund 1913862.35 162166.22
10. Escorts Mutual Fund 14692.87 0
11. Fidelity Mutual Fund 940284.5 4738.57
12. Franklin Templeton Mutual Fund 2990169.24 24830.99
13. HDFC Mutual Fund 4629197.3 0
14. HSBC Mutual Fund 1668528.07 0
15. ICICI Prudential Mutual Fund 5927765.29 3755.4
16. ING Mutual Fund 984471.13 80010
17. JM Financial Mutual Fund 1353479.92 0
18. JPMorgan Mutual Fund 253731.32 0
19. Kotak Mahindra Mutual Fund 2096808.42 36531.26
20. LIC Mutual Fund 1562818.83 0
21. Lotus India Mutual Fund 976388.07 0
22. Mirae Asset Mutual Fund N/A N/A
23. Morgan Stanley Mutual Fund 360658.14 0
24. PRINCIPAL Mutual Fund 1339785.14 0
25. Quantum Mutual Fund 6405.85 0

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 22


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

26. Reliance Mutual Fund 9353167.56 0


27. Sahara Mutual Fund 21095.54 0
28. SBI Mutual Fund 2949296.85 0
29. Standard Chartered Mutual Fund 1414072.91 3957.31
30. Sundaram BNP Paribas Mutual
1370533.56 27480.8
Fund
31. Tata Mutual Fund 2020460.72 0
32. Taurus Mutual Fund 36880.66 0
33. UTI Mutual Fund 5246471.4 0
Grand Total 56546953.38 376696.83

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 23


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

REGULATORY STRUCTURE OF MUTUAL FUND IN INDIA

The structure of mutual fund in India is governed by SEBI (Mutual fund) regulations, 1996
(herein after referred to as SEBI regulations). These regulations make it mandatory for mutual
funds to have a three tier structure of segment company (AMC). The sponsor is the promoter of
mutual fund, and appoints the trustees. The trustees are responsible to the investors in the mutual
fund and appoint the AMC for managing the investment portfolio. The AMC is the business face
of the mutual fund, as it manages all affairs of the mutual fund. The mutual fund and the AMC
have to be registered with SEBI.

SEBI regulations also provide for who can be a sponsor, trustee and AMC, and specify the
format of agreements between these entities. These entities provide for the rights, duties and the
obligations of these three entities.

The “Sponsor” means any person who comes up acting alone or in combination with another
body corporate, establishes a Mutual fund (MF). The sponsor must contribute atleast 40 percent
of the net worth of the Investment Managed and meet the eligibility criteria. Described under the
Securities and Exchange Board of India (Mutual funds) Regulations 1996, in brief, the sponsor is
a company that sponsors (contributes capital) to the formation of the fund.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 24


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

STRUCTURE OF MUTUAL FUND


Mutual funds can be structured in the following ways:-

 Company form, in which investors hold shares of mutual fund. In this structure, the
management of the fund is in the hands of an elected board, which in turn appoints
investment managers to manage the fund.
 Trust form, in which the funds of the investors are held by a trust, on behalf of investors.
The trust appoints investment managers and monitors their functioning, in the interest of
investors.

The company formed of organization is very popular in the United States. In India, mutual
funds are organized as trusts. The trust is created by Sponsor, who is actually the entity
interested in creating the mutual fund business. The trust is either managed by a Board of
Trustees, or by a trustee company formed for this purpose. The investors’ funds are held by
the trust. The MuF is constituted as a trust in accordance with the provisions of the India
Trusts Act, 1882. This is because trusts in India enjoy certain benefits like low tax on
income, liability limited to the unit capital etc. which mutual fund should poses. The Trustee
is usually a company (Corporate body) or a Board of Trustees (Body of individuals). The
main responsibility of the trustee is to safeguard the interest of the unit holders and ensure
that the AMC functions in the interest of investors and in accordance with the Securities and
Exchange Board of India (SEBI) (Mutual Fund Regulations 1996).

Atleast two-third directors of the trustee are independent directors who are not associated
with the sponsor in any manner. It is this nature of the mutual fund trust that allows for
mutual funds to be safe for individual investors.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 25


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

ASSET MANAGEMENT COMPANY


After formation of the mutual fund, the trustees taking charge and a scheme being launched,
money can be collected from investors.

This money needs to be managed by a separate entity called Asset Management Company. It
is this separate company that has all the professional money managers and that does the
actual job of managing investor money and its moving to and from the investors.

The trustees appoint the AMC as the investment manager of the mutual fund. The AMC is
required to be approved by the Securities and Exchange board of India (SEBI) to act as an
Asset Management Company of the mutual fund. The AMC is required to have a net worth
of atleast 10 crores at all times.

Types of AMCs

In India, the regulator lists five types of AMCs

1. Owned by banks
2. Owned by Financial institutions
3. Owned by Private sector companies
4. Owned by Institutional investors
5. Jointly owned by India and foreign sponsors
6. Sponsors

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 26


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

AMFI – Association of Mutual Fund in India

AMFI, Association of Mutual funds in India is the heading body of all the registered Asset
Management Companies. It was incorporated on Aug 22, 1995 as a non profit organization.
As of now all the 30 Asset Management Companies that have launched mutual fund schemes
are its members.

Objectives of AMFI:-

 To define and maintain high professional and ethical standards in all areas of
operation of mutual fund industry.
 To recommend and promote best business practices and code of conduct to be
followed by members and others engaged in the activities of mutual fund and asset
management including agencies connected and involved in the field of capital markets
and financial services.
 To interact with the Securities and Exchange Board of India (SEBI) and to
represent to SEBI on all matters concerning the mutual fund industry.
 To represent to the Government, Reserve Bank of India and other bodies on all
matters relating to the mutual fund industry.
 To develop the cadre of well trained Agent distributors and to implement a
programme of training and certification for all intermediaries and other engaged in the
industry.
 To undertake nation wide investor awareness programme so as to promote proper
understanding of the concept and working of MFs
 To disseminate information on mutual fund industry and to undertake studies and
research directly and in association with other bodies.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 27


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

ADVANTAGE OF MUTUAL FUND

 Professional Management
Mutual funds enjoy experienced professionals called ‘fund managers’ to manage a portfolio
of securities for its investors on a full-time basis, and decide on basis of extensive research. A
fund is managed by an individual/team choosing investments best matching the fund’s
objectives. These professionals are typically very well educated and experienced and
understand their role very well so as to give good performance with minimal possible risk to
investor money.

 Simplicity
Mutual funds provide services like custody, tax reporting, cash management and record-
keeping in a simple and cost-effective way. They also provide with periodical reporting, fund
performance updates for their clients. All this provides the customers with a lot of saving of
time, confusion and tension as the mutual fund takes care of all the extra burden of investing.

 Diversification
Diversifying investments helps reducing the impact of a single investment on the investor’s
portfolio. Mutual funds introduce diversification by holding a variety of securities and this
allows a more diversified portfolio than an individual investor would be able to comfortably
manage independently and at a much lesser cost. Mutual fund gives an opportunity to invest
in many markets and sectors, which may not happen unless the investor possesses a lot of
money, reach and time available with him.

 Regulated
Mutual funds are registered with SEBI and they function within the strict provisions for
protecting the interests of investors. SEBI regularly and closely monitor the operations of
mutual fund. This ensures that the investments of investors are in safe hands – which may not
be the case if the investor invests directly through a broker who may or may not act in the
best interests of the investor.

 Variety
Within the broad investment categories of equity, debt, and money market investor may
select among a variety of investment opportunities. Today there are more than 900 mutual
funds available in India, with unique objectives and styles to suit most preferences of
investor.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 28


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

 Low costs

Primarily, mutual fund charges a fee that is based on the gross value of the investors’
investment. The Mutual fund industry consists of many competing firms and hundreds of
schemes, the level of expenses and fee are competently managed and regulations have fixed
margin for the same. It works out relatively cheaper than an individual approach towards
asset management where the broker may charge much higher costs.

 Liquidity
Mutual fund units are generally liquid investments that can be sold on any business day or
predetermined dates. Mutual funds statutorily buy/redeem their units on every business day.
The redemption price or net asset value (NAV) is regularly advertised in newspapers. And
investors may either trade or redeem their units in the market.

 Transparency

Investors may seek regular information on the value of their investments directly from the
mutual fund or through public media. Additionally information on proportion to be invested
in different assets classes, FM’s strategy and opinion disclosure on the specific investments
made by the scheme, the proportion invested in each class of assets and the fund manager’s
investment strategy and outlook is readily made available by mutual fund atleast on a
monthly basis. This gives the investor comfort regarding how the investment is performing
and where the money is being invested.

 Flexibility
Several features are made into mutual fund which makes investment for the investors quite
flexible and there is always a fund for an investors requirement these features are SIP,
Dividend payout, Dividend reinvestment plans, and others so the investor may invest
according to her convenience.

 Affordability
Individual investor may lack adequate finances to invest in high cost stocks. A mutual fund
has large corpus that allows even a small investor to take exposure to a diversified portfolio
for as little as Rs. 500 a month.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 29


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

DISADVANTAGES OF MUTUAL FUNDS


Mutual fund investments are meant to benefit from good fund management of a diversified
portfolio. While this means the fund may be a great alternative fit most average Indians,
some investors also diversify into other investment alternatives because of some of the
following disadvantages:

 Fixed costs not related to performance


Investors are required to pay loads, fees, and other expenses irrespective of the performance
of the fund. This hurts badly especially when the fund house has anyway not performed well!

 Price uncertainty
Mutual funds declare the unit prices or NAV a few hours after the close of market so real
time information regarding the prices is not available, as in case of shares.

 Lack of Control

Flexibility of churning or making up the desired portfolio at any given time is not available to
the investors. It is the sole discretion of the Fund Manager. The investor cannot directly
influence the investments the Fund Manager make or how and when he makes them.

 Risks and costs


Volatile markets may create fluctuations in the value of a mutual fund investment.
Fees/expenses related with investing in mutual fund do not actually occur when buying
securities.

 No Guarantees
The investment in mutual fund could fall and be less than the principal invested. Returns are
not guaranteed or insured by the government. Despite of professional management
outperforming results may not be guaranteed.

 Diversification
Diversification, though it reduces risk, simultaneously it also limits the possible growth of a
concentrated investment. Also, diversification does reduce the exposure to market risk. The
investor has to weigh the nature of the advantages and the disadvantages and allocate the
amount of money to mutual funds that he/she does not want to manage directly as a good
fund manager can create substantial wealth over a period of time. The advisors’ job comes in
understanding how much wealth to allocate to mutual funds, what kind of mutual funds etc.
depending on the investors objectives and the risk profile. For example, if the investors want
high returns and are not so worried about the stock market movement in the short term, the
advisor can select some of the best stock based mutual funds.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 30


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

TYPES OF MUTUAL FUND

 Mutual fund based on participation

 Open ended Mutual Funds


Open ended mutual fund does not have a fixed number of units. It
continues to sell and buyback units to/from investors during its lifetime
and is therefore called ‘open’ to buy and sell opportunities. This means
investors nay put money into the fund or withdraw whenever they want.
Units of open ended mutual fund are bought and sold at their current
NAVs and relevant loads.

 Closed ended Mutual funds


Closed ended mutual fund issues shares to the public through a new fund
offer (NFO). These funds normally have a preset maturity (and not before
that). Closed ended mutual fund is called so because investments in
Closed ended mutual fund can be only made at the time of the New Fund
Offer (NFO) and thereafter it can be bought or sold only on stock
exchanges where they are listed (if they are listed) or sold off when the
fund matures.

These funds typically have a three to five-year commitment period and


sale options are limited – either you have to wait till maturity or sell in the
exchange at a discount if the Closed ended mutual fund is listed.

Interval Mutual Funds (IMF)


Internal Mutual fund combines the features of open-ended mutual fund
and closed-ended mutual fund, the fund is open for the sale or redemption
during pre-determined intervals – that is they are open ended on some
days and closed-ended on most of the days. fund from time to time offers
to buy back a stated proportion of its shares from unit holders.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 31


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Unit holders are not obliged to accept these offers and sell these shares
back to the fund.

Theoretically, Interval Mutual fund is similar to close ended, just the


difference being that:

 The units are not traded on the stock market.


 The units are subject to periodic repurchase offers by the fund.

 Different Mutual Funds based


on Option
 Growth Option
Under the growth scheme, the mutual fund does not declare dividend.
Instead, the returns to the investors are in the form of capital appreciation
of the units held; the NAV moves depending on the market movement of
the investments’ value. This is comparable to a cumulative interest paying
fixed deposit – where the interest is not paid regularly but added to the
amount one gets at time of maturity.

 Dividend Payout option


Dividend Declaring Mutual Fund declares a dividend whenever it has
surplus/profits (though they are not bound to declare dividends – it is the
sole discretion of the funds.

Example – NAV (Net Asset Value of an equity fund grows from Rs. 25 to Rs. 40
after 9 months and the fund declares a dividend of Rs. 9 per unit. This will convert
60% of the STCG into a tax-free income.

 Dividend Reinvestment
In dividend Re-investment mutual fund the fund declares a dividend but
reinvests the same into the fund by acquiring additional units of the fund
on the dividend declaration day. This means that the investor does not get
cash income but gets additional units as dividend.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 32


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Example – A owns 100 units of (face value Rs 10) a fund whose current NAV is
30. Thus his investment value is Rs 3,000 (100 x 30).

Now, the scheme declares a dividend of 20%. (a percentage of face value) i.e.
Rs 2 per unit.

Consider the effect on the various options:

Pre declaration of dividend


Growth Dividend Dividend
payout reinvestment

NAV (Rs) 30 30 30

Units 100 100 100

Value (Rs) 3,000 3,000 3,000

Post declaration of dividend

NAV (Rs) 30 28 28

Units 100 100 107.14

Value (Rs) 3,000 2800 3,000

Dividend received in cash NIL Rs 200 NIL

Additional units NIL NIL 7.14

What option an investor should select depends both on what the objective is
(regular income- for which dividend option should be selected - or long term
capital growth- for which growth option should be selected) AND what the tax laws
are (for e.g., if dividends are taxed more than capital gains for a particular kind of
scheme, one should select the growth option)

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 33


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

 Different Mutual Funds on


Basis of Investment Objectives

 EQUITY MUTUAL FUNDS:


This is a category of mutual funds that invests in primary and secondary equities
(shares) without specific preferences to certain stocks or sectors. (Equity Mutual
Funds have to have a minimum exposure of 65% into equities at any given point
of time) Equity Mutual Funds invest corpus of the fund primarily in the stocks of
public listed companies and are also allowed to invest upto 10% of the corpus in
unlisted companies. Many mutual funds invest primarily in companies of
particular types and are thus classified according to the underlying asset.

Equity fund managers employ different styles of stock picking when they make
investment decisions. Equity Mutual Funds are not suitable for investors seeking
regular income or those interested in short-term returns. They are ideal for
investors who have a long-term investment horizon.

The objective of such funds is typically growth of capital over the medium term
with reduced risk through diversification. The diversified equity fund managers
typically spread their investments across a wide variety of instruments to avoid
risk and to maximize returns while focused funds take huge exposures in specific
stocks and sectors to achieve returns.

1). Diversified Equity

There are slight differences between diversified equity funds in how they are
managed (Note that another difference between these funds is whether they are
open ended or closed ended):

1.1) Large-cap

 These funds make investments in companies with larger market capitalizations


(that is, companies whose share capital is valued very highly) .
 These companies are typically companies with a large share of sales and
profits in their respective industries and are leading indicators/ bellwethers of
their industry’s situation
 Typically included in the BSE 100 indices (or, NSE Nifty/NSE Junior Nifty).
Largecap companies are typically called ‘bluechips’ if they are included in the
BSE 30 or S&P Nifty indices.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 34


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

 These funds , since they invest in the best companies, are relatively the safest
of the diversified equity fund category as their NAV does not fluctuate as
much as others mentioned below.
1.2) Mid-cap

 These are funds that make investments in emerging companies or challenger


organizations- that is, companies with potential to turn into large-caps over a
period of time.
 Potential returns are high —but volatility also higher as they may fall in and
out of favour with stock markets from time to time as sentiments change.
 These funds are typically benchmarked to the NSE Midcap Index/ BSE
Midcap Index though fund houses may have in-house definitions on what they
call midcap, large cap etc. Information on what the fund decides it would
invest in is included in the key information memorandum / offer document.
1.3) Multi-cap

 Truly diversified funds with broad investment objective investing across


various market capitalizations, sectors and themes.
 Good Multi-cap funds are an ideal mix of defensive and growth themes
 Higher risk (higher potential returns) than largecap funds but lower (lower
returns potential) than midcaps.
 When these funds do not change their largecap versus midcap portions too
aggressively, DCWM calls them blended funds.
1.4) ELSS Schemes

 Also known as tax savings schemes (the amount of money invested carries
Sec 80 C benefits upto a maximum of Rs 1 lakh), these are closed ended
equity schemes
 Typically managed as blended funds (that is, across market capitalization) or
multicap funds though different styles abound in different fund houses and in
different market conditions.

2) Focused Funds:

2.1) Sector (SEMF)


Unlike diversified equity funds, these funds focus on a narrower set of themes, indices or sectors
to maximize returns potential. This allows investors to hold more specific exposures that they
desire, if they do not wish too much diversification in the portfolio. Sectoral-equity Mutual Fund

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 35


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

confine their investments primarily to a particular sector of the market such as pharma,
technology, infrastructure, utilities etc. The scheme is to permit investors to place their calls on
explicit industries or sectors, which they perceive having strong growth potential.

Sectoral-equity Mutual Fund are more liable to changes in a particular industry than funds
holding a diversified portfolio in many industries. Due to focused portfolios SEMF may produce
incredible gains or losses, depending on the sector performance.

Eg: Between 1998 and 2000, IT funds delivered returns in excess of 150% as IT stocks did
extremely well but when the markets crashed (Sensex fell from a high of about 6000 to a low of
2700 within a short time frame), IT funds fell much faster and more compared to diversified
equity funds.

2.2) Thematic
These funds fall somewhere between diversified funds and sector funds in
that they take exposures to broad themes that may include several sectors
but not as many as a diversified fund allows. Funds may have broad
themes like consumerism, Capex, exports etc which include several sub
sectors. Ex, a fund that has a ‘consumer’ theme may invest in several
sectors like media, telecom, banking, auto etc though it may not invest in
others like steel, pharma etc.

2.3) Index (IEMF)


Index Equity Mutual Fund constructs its portfolio by buying equity of all
the corporates that compose a particular index ,and normally in the
proportions equal to the weightage of those stocks in the index same
ratios, thereby exactly mirroring the performance of a market index.
Index Equity Mutual Fund is a form of passive investing as the manager
has no say or does not directly controls the constitution of the fund. There
is no risk of underperforming the markets. Next, they offer diversification
across a multiplicity of sectors since index stocks are generally a basket of
20-25 sectors thus reducing risks.
• Passively managed funds that invest in an index or its constituents
• Objective is to mirror index performance and minimize ‘tracking
error’.
• Returns and risk in line with index movements
• Ideal for investors who believe fund managers cannot continuously
outperform indices.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 36


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

2.4) Exchange Traded


Exchange Traded Funds are baskets of securities that are traded, on an
exchange. Unlike regular Open Ended Mutual Funds, Exchange Traded
Funds can be bought and sold throughout the trading day like any stock.
Exchange Traded Funds charge lower annual expenses than index mutual
funds.
However, investor must pay a brokerage to buy and sell ETF units, which
can be a important drawback for those who trade frequently or invest
regular sums of money. An exchange traded fund is similar to an index
fund in that it will primarily invest in the securities of companies that are
included in a selected market index. However it may choose to invest only
in a representative sample of those securities only. The investment
objective of an ETF is to achieve the same return as a particular market
index.

 Debt Funds
Debt Funds are also known as Income Schemes as they primarily invest in debt
securities such as debentures, corporate bonds, and government securities, which
generate a regular flow of income to the fund. DF are meant particularly for
investors with relatively less appetite for risk and have an intention to earn returns
higher than what are possible to earn from other relatively safer avenues like
Fixed Deposits.

 LONG TERM DEBT FUNDS


1.1) Income Mutual (IMF)
Income Mutual Fund invests in bonds, money markets and debentures
with medium and long-term maturities. These schemes mainly aim current
income and steady capital appreciation.
Hence they distribute a substantial part of the surplus by way of dividend
distribution. Income Mutual Fund usually declares quarterly /half yearly
dividends. Income Mutual Funds are best suited for a conservative
investor, who is looking for regular income and has medium/long term
investment horizon.

1.2) Gilt funds

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 37


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

This scheme primarily invests in Government Debt. Hence the investor


usually does not have to worry about credit risk since Government Debt is
generally credit risk free. However, these funds suffer from interest rate
risk.

2) SHORT TERM DEBT OPTIONS


2.1) Liquid Income
Liquid Income Mutual Funds have a shorter maturity than Income Mutual
Funds. In the present scene of low interest rates and less bank deposit
rates, Liquid Income Mutual Funds offer safety, convenience and
liquidity. LIMFs are better than current account deposits is that one may
earn returns for short duration (even one day and holidays). There are no
loads applicable in Liquid Income Mutual Funds. Internationally, investors
prefer parking their short term surpluses in money market and liquid funds
rather than short term bank deposits, both because they are more tax
efficient , equally liquid (that is, funds can be accessed as and when
required) and generate better returns.

2.2) Money Market


Money market funds are by and large the safest and most secure of MFs.
The objective of a MMF is to protect principal while giving a modest
return.
Money market funds invest exclusively in money market instruments.
Money market instruments are types of debt that mature in less than a
year’s time and are extremely liquid. Treasury bills make up most of the
money market instruments. Securities in the Money Market mutual funds
are relatively risk-free. Money market funds schemes generally invest in
treasury bills, certificates of deposit, commercial paper and inter-bank call
money. Returns on these schemes fluctuate and is correlated to the interest
rates prevailing in the market. These are best for Corporates and HNIs as a
means to park their excess funds for shorter time.

2.3) Floating Rate Plans


The basic distinguishing feature of a floating rate scheme is that it invests
in securities whose interest rates get reset at periodic intervals (daily,
monthly, quarterly, semi annually etc). The effort involved in constantly
having to rejuggle the portfolio to adjust to the changing interest rate

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 38


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

scenario (that income funds and gilt funds have to do- please read chapter
on bonds later to understand why this may be required) is eliminated.
A floating rate investment option can be seen as a product in which the
capital value of the investment does not fluctuate while the coupon rate
payable varies in line with interest rates. In contrast, in a fixed rate
investment option, the capital value fluctuates while the coupon payment
is fixed (see chapter on bonds for understanding how prices of bonds and
interest rates move in the opposite direction).
In the case of a floating rate investment option, the total return would be
higher if the interest rate goes up after the investment. The total return
would be lower if interest rates decline. In contrast, if you hold a fixed rate
investment option to maturity, changes in interest rates will have only a
little impact on the total return. The losses or gains in such a case due to
changes in interest rates would be purely notional.

 HYBRID FUNDS
Hybrid investments mix debt and equity in various proportions to enable an investor to
allocate assets as pre his or her risk profile and goals in life. While the debt portion should
typically provide protection, the equity portion strives for returns.

1). Balanced Mutual (BMF)

Balanced Mutual fund is commonly known as an aggressive hybrid fund. It invests in a


combination of equity shares, preferred stock, bonds, and short-term bonds, to provide both
capital appreciation and revenue income at the same time avoiding unwarranted risk. It is a
single Mutual fund that combines both growth (equities) and income (bonds) objectives.
Such diversified holdings make sure that these funds will handle bear runs in the stock
market without too much of a loss. However you can understand that balanced funds will
usually not grow as an Equity fund (especially during a bull market). Balanced Mutual fund
are perfect for investors looking for a blend of income and judicious growth.

2). Fund of Funds (FOF)

A FOF invests in other mutual funds. As a Mutual fund invests in a number of different
securities, a FOF holds shares of many different mutual funds. FOF are intended to realize
better diversification than conventional MF. FOF buys many different funds which
themselves invest in many different stocks. FOFs are funds that invest in other mutual funds,
instead of directly investing in stocks and debt market instruments.

 The rationale of these schemes is to provide the benefits of multiple fund


managers in one scheme while making returns from the underlying asset classes.
 Please note that they can come in a variety of styles —from pure equity, hybrid
and pure debt.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 39


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Investors

Trading funds

(Fund of funds)

Underlying fund 1 Underlying fund 2 Underlying fund 3

3). Monthly Income Plans

These schemes typically invest between 5%- 20% in equity and the rest in bonds and are
typically targeted at retail investors looking for a marginal exposure to equity but want overall
stability in their assets.

 Designed with objective of giving a regular, stable return to investors


 Monthly Income Plans invest in debt with a marginal equity exposure
 Returns depend on levels of equity exposure and the quality /maturity of
bonds held.

4). Arbitrage Funds

 Aim to replicate returns of debt funds without the price risks of a debt
fund.
 Use a strategy involving simultaneous purchase and sale of identical or
equivalent instruments from two or more markets in order to benefit from a
discrepancy in prices.
 Typically designed for zero capital risk, and returns comparable to most
fixed income instruments.
5). Capital Protection Funds
 Recently cleared by SEBI to be launched in Indian markets.
 Ideal substitute for Bank Deposits and any other fixed income instruments and
would offer the upside of equity without risk to capital.
These funds however, are closed-ended and returns should typically be in line with a
balanced fund.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 40


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Common terms used in Mutual fund industry

 NAV: NAV or Net Asset Value of the fund is in a way the price of the fund. Technically, it
is the ‘cumulative market value of the assets of the fund net of its liabilities’. ‘NAV per unit’
is simply the net value of assets divided by the number of units outstanding. Buying and
selling into funds is done on the basis of NAV-related prices (that is, NAV plus some
additional cost that will be explained below- see What is Entry and exit load?).
NAV is calculated as follows:
NAV= (Market value of the fund’s investments + Receivables + Accrued Income—
Liabilities-Accrued Expenses) / Number of Outstanding units

The NAV of a mutual fund are required to be published in newspapers. The NAV of an open end
scheme should be disclosed on a daily basis and the NAV of a close end scheme should be
disclosed at least on a weekly basis. These can also be found on the fund’s website and
www.amfiindia.com

 Entry/exit load: A Load is a charge, which the mutual fund may collect on entry and/or exit
from a fund. A load is levied to cover the up-front cost incurred by the mutual fund for
selling the fund (remember that the mutual fund has some operational costs as well as has to
pay the distributor some commission).

Some funds do not charge any entry or exit load. These funds are referred to as ‘No Load Fund’.

Funds usually charge an entry load ranging between 1.00% and 2.25%. Exit loads typically vary
between 0.5% and 2.25%. For e.g. Let us assume an investor invests Rs. 10,000/- and the current
NAV is Rs.13/-. If the entry load levied is 1.00%, the price at which the investor invests is
Rs.13.13 per unit. The investor receives 10000/13.13 = 761.6146 units. (Note that units are
allotted to an investor based on the amount invested and not on the basis of no. of units
purchased). Let us now assume that the same investor decides to redeem his 761.6146 units. Let
us also assume that the NAV is Rs 15/- and the exit load is 0.50%. Therefore the redemption
price per unit works out to Rs. 14.925. The investor therefore receives 761.6146 x 14.925 =
Rs.11367.10.

 CDSC: Exit or Back-end load funds charge commission at the time of redemption by the
investor. If this is charged irrespective of any condition at the time of exit, its called an exit
load. If it is charged with conditions / contingency (for example, investors redeeming in less
than 6 months an amount less than Rs lakh would be charged 0.25% exit load), it is a CDSC
though people use CDSC/Exit interchangeably.

The objective of CDSC is to discourage short term investments in a scheme meant for the
medium or long term.

 Fund offer document: A Fund Offer document is a document that offers you all the
information you could possibly need about a particular scheme and the fund launching that
scheme. That way, before you put in your money, you’re well aware of the risks etc involved.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 41


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

This has to be designed in accordance with the guidelines stipulated by SEBI and the
prospectus must disclose details about:
o Investment objectives
o Risk factors and special considerations
o Summary of expenses
o Constitution of the fund
o Guidelines on how to invest
o Organization and capital structure
o Tax provisions related to transactions
o Financial information
 Sales / Purchase Price: Sales / Purchase Price is the price paid to purchase a unit of the fund.
If the fund has no entry load, then the sales price is the same as the NAV. If the fund levies
an entry load, then the sales price would be higher than the NAV to the extent of the entry
load levied.
 Redemption Price: Redemption price is the price received on selling units of open-ended
scheme. If the fund does not levy an exit load, the redemption price will be same as the NAV.
The redemption price will be lower than the NAV in case the fund levies an exit load.
 Repurchase Price: Repurchase Price is the price at which a close-ended scheme repurchases
its units. Repurchase can either be at NAV or can have an exit load.
 Switch: Some Mutual Funds provide the investor with an option to ‘shift’ his investment
from one scheme to another within that fund without having to redeem/sell from one scheme
and then repurchase/ subscribe another one. For this option the fund may levy a switching
fee. Switching allows the Investor to alter the allocation of their investment among the
schemes in order to meet their changed investment needs, risk profiles or changing
circumstances during their lifetime.
 Systematic Investment Plan (SIP): This money that you give to the fund house each month
enables you to buy units of a fixed amount at different time periods. Hence you get more
units when the NAV is less and less units when NAV is more thus effectively averaging the
cost. That is, you buy less at higher prices and buy more at lower prices without bothering
about which way the equity market is going. In the long term, this works out to be a much
better strategy for an investor planning for a large corpus years down the line.
 SIP has 4 fundamentals benefits.

1. Compounding - It is amazing to understand that you may compound your returns


by investing a small sum of money regularly from an early age rather than bigger sums at a
later date. Earlier the investments better the compounding and hence superior will be the
payback.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 42


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Example : Consider three people Anil, Rajiv & Sunil who started investing
at different age levels.

Anil was the first one to start Rs 10000 per annum at 25, Rajiv at
30 & Sunil at 35 years of age. Assuming a compounded return of 9% p.a.,
the graph shows how returns differ depending on hen you start investing.

When all three are at age 60, we see that Anil has over Rs. 23 lacs, Rajiv
about Rs. 15 lacs and Sunil just Rs. 9 lacs. The key, therefore, lies in
starting early, and giving your investments time to grow

2. Light on the wallet - Average per capita income of an Indian is approximately only Rs
2,000 a month), and investing Rs 5,000 at one-time entry in a mutual fund is not feasible (2.5 times
the monthly income). So mutual funds give the SIP route so that he may invest as low as Rs 500 in
SIP for 12 months (Only 25% of his monthly income).

3. Convenience: Investor need not regularly track the market to make his investments. He just gives
post dated cheques to the SIMF. The Mutual fund will withdraw the money on desired date and
credit the units bought to investor’s account. Mutual fund will give a periodical account statement
showing the details of the investments, amount, number of units, and average cost of each unit and
the market worth of the investment.

4. Rupee Cost Averaging: No one knows the best time to invest every time. It would be difficult for
even for an expert to predict the market every time. Studies have repetitively highlighted the
capability of stocks to do better than other asset classes like debt, gold, property over the long-term.
The only question that remains is when and where? The answer is the simple discipline of averaging
i.e. to invest a fixed sum every month could help in wealth creation we would tend to buy more
when the prices are less and buy less when the prices are high.

This predetermined market timing mechanism is known as “Rupee Cost Averaging” and the SIP
route allows you to do this averaging through mutual funds.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 43


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

 Systematic Withdrawal Plan (SWP)

Systematic Withdrawal Plan lets you automatically redeem a prearranged amount of your mutual
fund holdings each month. SWPs are an ideal way to supplement your monthly cash flow, meet
minimum withdrawal requirements, or move assets between the funds.

SWP is a no-charge service. When you set up your SWP, cash proceeds from each redemption
(minimum balance maintained @ 25% of the holding at any given point of time) are given to you in
the form of post-dated cheques (six monthly cheques at par, which enables you to get the funds
lodged).

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 44


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

BALANCED MUTUAL FUND

Balanced Fund
A balanced fund is geared toward investors who are looking for a mixture of safety, income and
modest capital appreciation. The amounts that such a mutual fund invests into each asset class
usually must remain within a set minimum and maximum.

Although they are in the "asset allocation" family, balanced fund portfolios do not materially
change their asset mix. This is unlike life-cycle, target-date and actively managed asset-
allocation funds, which make changes in response to an investor's changing risk-return appetite
and age, or overall investment market conditions

Balanced fund is also known as hybrid fund. It is a type of mutual fund that buys a combination
of common stock, preferred stock, bonds, and short-term bonds, to provide both income and
capital appreciation while avoiding excessive risk.

Balanced funds provide investor with an option of single mutual fund that combines both growth
and income objectives, by investing in both stocks (for growth) and bonds (for income). Such
diversified holdings ensure that these funds will manage downturns in the stock market without
too much of a loss. But on the flip side, balanced funds will usually increase less than an all-
stock fund during a bull market.

Investing in Balanced Mutual Funds


If you are trying to find the best balanced mutual funds, you will have to know which
characteristics you are looking for before you invest your money. A balanced mutual fund is
classified as a mutual fund which is invested in common stock, bonds, and preferred stock with
capital appreciation and low risk. This means that you will be able to invest in the mutual fund
without having to worry about whether or not you will lose money in the future, since the
company has proven to show positive profit and investment traits. A balanced mutual funds is
also a good idea if you are just starting to invest in mutual funds, since these type of companies
will also be good for stock market investing, and you won't have to run the risk of the company
losing money while you have invested funds in it. However, mutual funds are 'liquid', which
means you can remove your funds at any time until you find that it is safe to invest in that
particular mutual fund.

Balanced mutual funds are also a safe investment because you can get the best of both worlds..
You can invest in the stock market by buying stock in the companies you are investing in.
Similarly you may be able to secure more investments as a result of balanced mutual funds.
Some of the best performing balanced mutual funds offer additional investment options, so if you
are considering this type of investment, you must talk to your financial advisor about the
investment trends of the company and the best way to start investing your funds.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 45


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Additional Information
Once you have invested in balanced mutual funds, you will also have to think about your
finances as a whole in order to continue making sound investment choices. The best balanced
mutual funds will help you to maintain your current income; so that even if you are investing
money every month in a company, you can still have the money you need to maintain your
standard of living. There is also room for long-term growth when you are investing in a balanced
mutual fund. so you can enjoy the success of the mutual fund over a long period of time, even
though it may be at a slower, steadier rate than some high-income companies that are of high-risk
for investors.

Balanced mutual funds do not offer high returns like equity funds (or pure stock funds), which
means that you may not make a huge profit from investing in the balanced mutual funds, but
there are lots of risk for in investing in these types of funds. so if you are still learning about
investing and want to make sure that you are making the best moves with your money, it may be
best to invest in one balanced mutual fund at a time in order to chart the progress of the mutual
fund effectively.

How to Find Balanced Mutual Funds


If you want to invest in balanced mutual funds, or if you want to make additional investments
after you have started a mutual fund, you can visit several investment companies to find out more
information about balanced mutual funds that are both local and international.

You should also find out about the stocks and bonds that are involved in a balanced mutual fund.
The bonds may grow at varying paces, which may make it a bit risky to invest in a balanced
mutual fund at certain times.. But the investment will still be a safe.

A detailed consultation with a financial advisor will let you know whether or not you are in the
right place to invest in the best balanced mutual funds, or if you want to know more about best
performing balanced mutual funds. You should make sure that you have taken a detailed look
into your finances to see how much you can afford to invest every month in a balanced mutual
fund. You will also learn more about the stock market by making different advancements in your
balanced mutual fund investment strategies. You will be able to build up your financial portfolio
so that you can make high-risk investments in the future without being much cautious about
making the next move in your finances

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 46


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

NAME OF FUNDS SELECTED IN SAMPLE FOR ANALYSIS

1. DSPML
Balanced
2. LIC Balance
(G)
3. Reliance
Balanced -G
4. Kotak
Balance - G
5. PRINCIPAL
Bal- G
6. Canara
Balance - G
7. BOB
Balnced-G
8. Escorts
Balanced - G
9. Birla Balance
-G
10. ING
BALANCE-
G
11. TATA
BALANED-
G
12. Birla SunLife
95 - G
13. SBIMagnum
Bal -G
14. HDFC
Balanced - G
15. Escorts
Oppor - G
16. ICICI
PruBalanced-
G
17. Sundaram
Balance -G
18. JM Balanced
- Growth
19. HDFC
Prudence - G
20. UTI
Balanced - G

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 47


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

21. Franklin
Balanc -G

DATA

Birla Balance-G

The Scheme aims to balance income requirements with growth of capital through balanced
mix of investment in equity and debt

Type of Scheme Open Ended A


Fund Manager
Nature Equity & Debt Balasubramaniam .
Option Growth SIP
Inception Date Oct 4, 1999
STP
Face Value (Rs/Unit) 10
108.7 as on Apr 30, SWP
Fund Size in Rs. Cr.
2008 Expense ratio(%) 2.46
Portfolio Turnover
24
Ratio(%)

Asset Management Company Birla Sunlife


Asset
Management
Company
Ltd.

Current Stats & Profile Trailing Returns


As on 16 May 2008 Fund Category
Year to Date -13.00 -15.31
Latest NAV
1-Month 3.78 3.82
32.12 3-Month 0.28 -4.27
(16/05/08) 1-Year 13.02 15.63
52-Week High 3-Year 22.02 24.71
5-Year 27.80 32.67

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 48


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

37.62 Return Since Launch 14.49 --


(07/01/08) Returns upto 1 year are absolute and over 1
52-Week Low year are annualised.
28.65
(13/06/07)
Fund Category

Hybrid:
Equity-oriented
Type

Open
End
Launch Date

October
1999
Risk Grade

Below
Average
Return Grade

Below
Average
Net Assets (Cr)

108.70
(30/04/08)
Benchmark

Crisil
Balanced

Relative Performance (Fund Vs Category Average)

Asset Allocation
As on 30/04/10 % Net Assets
Equity 71.39

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 49


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Debt 21.97
Others 6.64
Portfolio Concentration

As on 30/04/10 % Net Assets

Top 3 Sectors 35.16

Top 5 Holdings 29.38

Top 10 Holdings 48.47

Top Holdings As on 30/04/08

Name of Holding Instrument % Net Assets

Infrastructure Devp. Fin. Co. Bonds 7.32


Citibank N A. Bonds 6.72
ITC Equity 5.56
E I D-Parry (I) Equity 5.33
7.38% G O I 2015 GOI Securities 4.46
Novartis India Equity 4.44
Mahindra & Mahindra Equity 4.01
Pfizer Equity 3.81
Reliance Industries Equity 3.61
Infosys Technologies Equity 3.23
Radico Khaitan Equity 3.22
B O C India Equity 2.96
7.61% Oil Bond 2015 GOI Securities 2.63
United Phosphorus Ltd. Equity 2.23
Indraprastha Gas Equity 2.09
Bharti Airtel Equity 2.07
Wipro Equity 2.02
Oil & Natural Gas Corpn. Equity 1.90

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 50


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Tata Chemicals Equity 1.87


Wyeth Equity 1.85
Tata Motors Equity 1.77
Shaw Wallace & Co. Equity 1.68
H C L Technologies Equity 1.65
Infrastructure Devp. Fin. Co. Equity 1.63
Indian Oil Equity 1.61
Indicates an increase or decrease or no change in holding since last portfolio
Indicates a new holding since last portfolio
Sector Weightings
As on 30/04/10 % Net Assets
Consumer Non-Durable 12.78
Health Care 11.91
Technology 10.47
Chemicals 8.03
Energy 7.28
Automobile 6.93
Diversified 5.33
Financial Services 4.18
Services 3.23
Construction 1.24

Birla Sun Life 95-G

The scheme aims to generate long term growth of capital and current income from a
portfolio of equity and fixed income securities.

Type of Scheme Open Ended A Balasubramaniam


Fund Manager
Nature Equity & Debt .
Option Growth SIP
Inception Date Feb 11, 1995
STP
Face Value (Rs/Unit) 10
173.75 as on Apr 30, SWP
Fund Size in Rs. Cr.
2010 Expense ratio(%) 2.42
Portfolio Turnover
41
Ratio(%)

Asset Management Company Birla Sunlife Asset Management Company Ltd.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 51


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

2nd Floor, Tower B Ahura Centre, 96 A D,


Mahakali Caves Road, Andheri(E)
Mumbai - 400093 Tel.- 56928000

Current Stats & Profile Trailing Returns


As on 16 May 2008 Fund Category
Year to Date -16.95 -15.31
Latest NAV
1-Month 7.08 3.82
220.29 3-Month -4.01 -4.27
(16/05/08) 1-Year 16.70 15.63
52-Week High 3-Year 27.61 24.71
275.75 5-Year 35.15 32.67
(07/01/08) Return Since Launch 26.64 --
52-Week Low Returns upto 1 year are absolute and over 1
year are annualised.
190.24
(18/05/07)
Fund Category

Hybrid:
Equity-oriented
Type

Open
End
Launch Date

February
1995
Risk Grade

Above
Average
Return Grade

Average
Net Assets (Cr)

173.75
(30/04/08)
Benchmark

Crisil
Balanced

Relative Performance (Fund Vs Category Average)

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 52


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Asset Allocation Portfolio Concentration


As on 30/04/08 % Net Assets As on 30/04/08 % Net Assets
Equity 63.57 Top 3 Sectors 29.47
Debt 28.55 Top 5 Holdings 30.24
Others 7.89 Top 10 Holdings 47.63

Top Holdings As on 30/04/08

Name of Holding Instrument % Net Assets

Power Finance Corpn. Bonds 10.40


Rallis India Equity 5.84
L I C Housing Fin. Bonds 5.79
ICICI Bank Bonds 4.17
Infosys Technologies Equity 4.04
ITC Equity 3.80
Reliance Industries Equity 3.76
Trent Equity 3.72
8.3% G O I 2023 GOI Securities 3.23
Glenmark Pharma. Equity 2.89
National Bank Agr. Rur. Devp Bonds 2.87
Bharti Airtel Equity 2.77
United Breweries Equity 2.63
Rashtriya Chem & Fert. Equity 2.46
B O C India Equity 2.20
State Bank of Indore Bonds 2.08

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 53


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Jai Prakash Associates Equity 2.06


Indian Oil Equity 1.99
Satyam Computer Services Equity 1.98
Nestle India Equity 1.92
Bharati Shipyard Equity 1.86
Infrastructure Devp. Fin. Co. Equity 1.79
Housing Dev. & Infrastructure Equity 1.78
Gujarat Gas Co. Equity 1.67
E T C Networks Equity 1.64
Indicates an increase or decrease or no change in holding since last portfolio
Indicates a new holding since last portfolio
Sector Weightings
As on 30/04/08 % Net Assets
Diversified 10.34
Services 10.34
Technology 8.79
Energy 7.21
Consumer Non-Durable 7.00
Financial Services 6.75
Chemicals 4.66
Health Care 2.89

Basic/Engineering 2.68
Construction 1.78
Automobile 1.14

BoB Balance-G

To generate long term capital appreciation along with stability through a well balanced
portfolio of equity & debt instruments.

Type of Scheme Open Ended Fund Manager Deepak Acharya .


Nature Equity & Debt SIP
Option Growth
STP
Inception Date Sep 3, 2003
Face Value (Rs/Unit) 10 SWP
0.79 as on Mar 31, Expense ratio(%) 1.08
Fund Size in Rs. Cr.
2008 Portfolio Turnover
21
Ratio(%)

Asset Management Company Bank Of Baroda Asset Management Company Ltd

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 54


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

105, 10th Floor,


Maker Chamber - III, Nariman Point
Mumbai - 400023 Tel.- 22853323

Current Stats & Profile Trailing Returns


As on 16 May 2008 Fund Category
Year to Date -22.42 -15.31
Latest NAV
1-Month 0.82 3.82
26.95 3-Month -9.26 -4.27
(16/05/08) 1-Year 12.20 15.63
52-Week High 3-Year 18.73 24.71
35.6 5-Year -- 32.67
(07/01/08) Return Since Launch 23.46 --
52-Week Low Returns upto 1 year are absolute and over 1
year are annualised.
23.61
(21/08/07)
Fund Category

Hybrid:
Equity-oriented
Type

Open
End
Launch Date

Septemb
er 2003
Risk Grade

High
Return Grade

Below
Average
Net Assets (Cr)

0.88
(29/02/08)
Benchmark

Crisil
Balanced

Relative Performance (Fund Vs Category Average)

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 55


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Asset Allocation Portfolio Concentration


As on 30/04/08 % Net Assets As on 30/04/08 % Net Assets
Equity 67.00 Top 3 Sectors 49.75
Debt 0.00 Top 5 Holdings 60.94
Others 33.00 Top 10 Holdings 67.00

Top Holdings As on 30/04/08

Name of Holding Instrument % Net Assets

Others Cash 33.00


Larsen & Toubro Equity 26.55
Siemens Equity 17.11
B O C India Equity 6.09
Ranbaxy Laboratories Equity 6.06
Reliance Communications Equity 5.13
Henkel India Equity 3.89
India Cements Equity 2.17
Indicates an increase or decrease or no change in holding since last portfolio
Indicates a new holding since last portfolio
Sector Weightings
As on 30/04/08 % Net Assets
Diversified 26.55
Basic/Engineering 17.11
Chemicals 6.09
Health Care 6.06
Technology 5.13
Consumer Non-Durable 3.89
Construction 2.17

Canara Robeco Balance-G

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 56


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Aims to provide combination of long term capital appreciation and income from a
balanced portfolio of equity and fixed income securities.

Type of Scheme Open Ended Fund Manager U.P. Bhat .


Nature Equity & Debt SIP
Option Growth
STP
Inception Date Feb 1, 1993
Face Value (Rs/Unit) 10 SWP
139.27 as on Mar Expense ratio(%) 1.23
Fund Size in Rs. Cr.
31, 2008 Portfolio Turnover
21
Ratio(%)

Asset Management Company Canara Robeco Asset Management Company Ltd.


Mr. R. Swamination Construction House, 4Th Floor
5, Walchand Hirachand Marg, Ballard Estate
Mumbai - 400001 Tel.- 56585042

Current Stats & Profile Trailing Returns


As on 16 May 2008 Fund Category
Year to Date -15.50 -15.31
Latest NAV
1-Month 3.80 3.82
45.37 3-Month -1.82 -4.27
(16/05/08) 1-Year 18.83 15.63
52-Week High 3-Year 31.59 24.71
55.54 5-Year 34.36 32.67
(07/01/08) Return Since Launch 12.46 --
52-Week Low Returns upto 1 year are absolute and over 1
year are annualised.
38.21
(18/05/07)
Fund Category

Hybrid:
Equity-oriented
Type

Open
End
Launch Date

January
1993

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 57


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Risk Grade

Average
Return Grade

Above
Average
Net Assets (Cr)

147.75
(30/04/08)
Benchmark

Crisil
Balanced

Relative Performance (Fund Vs Category Average)

Asset Allocation Portfolio Concentration


As on 30/04/08 % Net Assets As on 30/04/08 % Net Assets
Equity 73.40 Top 3 Sectors 37.99
Debt 8.92 Top 5 Holdings 25.35
Others 17.68 Top 10 Holdings 41.96

Top Holdings As on 30/04/08

Name of Holding Instrument % Net Assets

Reliance Industries Equity 7.08


Larsen & Toubro Equity 6.10
ITC Equity 4.46
Reliance Infrastructure Equity 3.86

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 58


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

BHEL Equity 3.85


Axis Bank Equity 3.75
Tata Steel Equity 3.42
Reliance Communications Equity 3.34
Punj Lloyd Equity 3.21
SBI Equity 2.89
Tata Power Equity 2.83
Bharti Airtel Equity 2.43
Reliance Petroleum Equity 2.04
Sterlite Industries (India) Equity 2.04
Reliance Capital Equity 2.04
7% Power Finance Corpn. Bonds 1.96
7.1% Food Corporation of India 28/02/2010 Bonds 1.96
Zee Entertainment Enterprises Equity 1.95
7.15% Indian Oil 10/06/2012 Bonds 1.95
National Thermal Power Corp. Equity 1.66
HDFC Bank 22/07/2008 Certificate of Deposit 1.56
Infosys Technologies Equity 1.54
HDFC Bank Equity 1.54
HDFC Bank 21/07/2008 Certificate of Deposit 1.49
Mahindra & Mahindra Equity 1.36
Indicates an increase or decrease or no change in holding since last portfolio
Indicates a new holding since last portfolio
Sector Weightings
As on 30/04/08 % Net Assets
Energy 18.02
Financial Services 11.11
Technology 8.86
Diversified 7.78
Basic/Engineering 6.93
Consumer Non-Durable 5.53
Metals & Metal Products 5.46
Construction 4.30
Automobile 2.38
Services 2.25
Health Care 0.78

DSPML Balanced-G

Seeks to generate long term capital appreciation and current income from a portfolio
constituted of equity and equity related securities as well as fixed income securities.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 59


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Type of Scheme Open Ended Fund Manager Apoorva Shah .


Nature Equity & Debt SIP
Option Growth
STP
Inception Date May 14, 1999
Face Value (Rs/Unit) 10 SWP
484.33 as on Mar Expense ratio(%) 1.98
Fund Size in Rs. Cr.
31, 2008 Portfolio Turnover
1.6651
Ratio(%)

Asset Management Company DSP Merrill Lynch Fund Managers


Tulsiani Chambers, West Wing, 11th Floor,
Nariman Point
Mumbai - 400021 Tel.- 66578000

Current Stats & Profile Trailing Returns


As on 16 May 2008 Fund Category
Year to Date -13.81 -15.31
Latest NAV
1-Month 4.23 3.82
50.17 3-Month -0.59 -4.27
(16/05/08) 1-Year 22.04 15.63
52-Week High 3-Year 31.07 24.71
59.752 5-Year 35.39 32.67
(04/01/08) Return Since Launch 19.59 --
52-Week Low Returns upto 1 year are absolute and over 1
year are annualised.
41.338
(21/08/07)
Fund Category

Hybrid:
Equity-oriented
Type

Open
End
Launch Date

May
1999
Risk Grade

Below
Average
Return Grade

High

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 60


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Net Assets (Cr)

542.10
(30/04/08)
Benchmark

Crisil
Balanced

Relative Performance (Fund Vs Category Average)

Asset Allocation Portfolio Concentration


As on 30/04/08 % Net Assets As on 30/04/08 % Net Assets
Equity 67.38 Top 3 Sectors 34.47
Debt 24.68 Top 5 Holdings 33.28
Others 7.95 Top 10 Holdings 44.53

Top Holdings As on 30/04/08

Name of Holding Instrument % Net Assets

HDFC Floating Rate Notes 12.54


IDBI Floating Rate Bond 11.07
Reliance Industries Equity 4.50
Infosys Technologies Equity 2.71
Satyam Computer Services Equity 2.46

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 61


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Larsen & Toubro Equity 2.41


HDFC Equity 2.36
Hindustan Unilever Equity 2.35
Tata Power Equity 1.68
Oil & Natural Gas Corpn. Equity 1.54
Nestle India Equity 1.51
Bharti Airtel Equity 1.42
Bombay Dyeing & Mfg. Co. Equity 1.42
Hero Honda Motors Equity 1.30
Educomp Solutions Ltd. Equity 1.28
Asian Paints (I) Equity 1.24
Axis Bank Equity 1.22
Cairn India Ltd. Equity 1.20
Bharat Electronics Equity 1.20
U T V Software Communications Equity 1.19
BEML Equity 1.19
Tata Chemicals Equity 1.16
New Delhi Television Equity 1.14
EIH Equity 1.11
Gujarat Alkalies & Chemicals Equity 1.08
Indicates an increase or decrease or no change in holding since last portfolio
Indicates a new holding since last portfolio
Sector Weightings
As on 30/04/08 % Net Assets
Energy 13.28
Technology 12.52
Financial Services 8.67
Consumer Non-Durable 5.85
Services 5.58
Chemicals 4.87
Diversified 3.40
Health Care 3.32
Construction 2.48
Automobile 2.38
Textiles 2.38

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 62


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Basic/Engineering 2.06
Metals & Metal Products 1.34

Escorts Balanced Fund-G

Seeks to generate long term capital appreciation and current income from a well
diversified portfolio of equity shares and fixed income securities.

Type of Scheme Open Ended Fund Manager K. K. Mittal .


Nature Equity & Debt SIP
Option Growth
STP
Inception Date Mar 20, 2001
Face Value (Rs/Unit) 10 SWP
4.35 as on Jan 31, Expense ratio(%) 2.25
Fund Size in Rs. Cr.
2008 Portfolio Turnover
133.72
Ratio(%)

Asset Management Company Escorts Asset Management Ltd.


11, Scindia House
Connaught Circus
New Delhi - 110001 Tel.- 3321654

Current Stats & Profile Trailing Returns


As on 16 May 2008 Fund Category
Year to Date -25.45 -15.31
Latest NAV
1-Month 2.86 3.82
57.9085 3-Month -8.89 -4.27
(16/05/08) 1-Year 15.73 15.63
52-Week High 3-Year 28.88 24.71
81.2532 5-Year 35.04 32.67
(07/01/08) Return Since Launch 27.79 --
52-Week Low Returns upto 1 year are absolute and over 1
year are annualised.
49.3877
(13/06/07)
Fund Category

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 63


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Hybrid:
Equity-oriented
Type

Open
End
Launch Date

March
2001
Risk Grade

Above
Average
Return Grade

Above
Average
Net Assets (Cr)

3.63
(30/04/08)
Benchmark

Crisil
Balanced

Relative Performance (Fund Vs Category Average)

Asset Allocation Portfolio Concentration


As on 30/04/08 % Net Assets As on 30/04/08 % Net Assets
Equity 66.15 Top 3 Sectors 33.58
Debt 32.06 Top 5 Holdings 44.00

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 64


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Others 1.79 Top 10 Holdings 67.61

Top Holdings As on 30/04/08

Name of Holding Instrument % Net Assets

ICICI Bank Bonds 13.10

Export-Import Bank Bonds 10.80


Andhra Bank Bonds 7.59
Reliance Communications Equity 6.37
Maruti Suzuki India Equity 6.14
Ranbaxy Laboratories Equity 5.29
Petronet LNG Equity 5.08
Infrastructure Devp. Fin. Co. Equity 4.91
BHEL Equity 4.72
Reliance Industries Equity 3.61
Pyramid Saimira Theatre Equity 3.59
Karuturi Global Equity 3.36
Northgate Technologies Equity 3.17
Punjab National Bank Equity 2.67
Apollo Tyres Equity 2.15
HDFC Bank Equity 2.10
ACC Equity 2.09
ITC Equity 2.03
G A I L (I) Equity 1.96
National Thermal Power Corp. Equity 1.76
BGR Energy Systems Equity 1.58
Transformers & Rectifiers (I) Equity 1.22
Himachal Futuristic Equity 1.14
Kernex Microsystems (India) Equity 0.80
12.25% Karnataka SDL GOI Securities 0.57
Indicates an increase or decrease or no change in holding since last portfolio
Indicates a new holding since last portfolio
Sector Weightings
As on 30/04/08 % Net Assets
Energy 12.41
Technology 11.48

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 65


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Financial Services 9.69


Automobile 8.29
Basic/Engineering 7.52
Consumer Non-Durable 5.39
Health Care 5.29
Services 3.59
Construction 2.09
Consumer Durable 0.40

FT India Balanced-G

The fund aims to provide long term capital appreciation and current income by investing in
equity and equity related securities and high quality fixed income instruments.

Type of Scheme Open Ended Sachin Padwal-


Nature Equity & Debt Desai , Mr. Ninad
Fund Manager
Option Growth Deshpande , Anand
Inception Date Dec 10, 1999 Radhakrishnan .
Face Value (Rs/Unit) 10 SIP
287.84 as on Mar STP
Fund Size in Rs. Cr.
31, 2008
SWP
Expense ratio(%) 2.33
Portfolio Turnover
NA
Ratio(%)

Asset Management Company Templeton Asset Management (India) Pvt. Ltd.


Wockhardt Towers, 4th Floor,
Bandra Kurla Complex,
Mumbai - 400051 Tel.- 67519100

Current Stats & Profile Trailing Returns


As on 16 May 2008 Fund Category

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 66


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Year to Date -13.73 -15.31


1-Month 4.09 3.82
Latest NAV
3-Month -4.62 -4.27
40.167 1-Year 17.73 15.63
(16/05/08) 3-Year 27.48 24.71
52-Week High 5-Year 33.56 32.67
47.0374 Return Since Launch 17.91 --
(12/12/07) Returns upto 1 year are absolute and over 1
52-Week Low year are annualised.

34.33
(13/06/07)
Fund Category

Hybrid:
Equity-oriented
Type

Open
End
Launch Date

Decemb
er 1999
Risk Grade

Average
Return Grade

Average
Net Assets (Cr)

312.06
(30/04/08)
Benchmark

Crisil
Balanced

Relative Performance (Fund Vs Category Average)

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 67


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Asset Allocation Portfolio Concentration


As on 30/04/08 % Net Assets As on 30/04/08 % Net Assets
Equity 67.72 Top 3 Sectors 43.10
Debt 29.88 Top 5 Holdings 27.81
Others 2.40 Top 10 Holdings 49.55

Top Holdings As on 30/04/08

Name of Holding Instrument % Net Assets

Sundaram Finance Debenture 6.30


Reliance Industries Equity 6.08
HDFC Equity 5.69
Kotak Mahindra Bank Equity 4.97
GE Money Financial Services Debenture 4.78
Bharti Airtel Equity 4.71
Indian Retail ABS Tr.85 A1B (ICICI Bank) Structured Obligation 4.37
Larsen & Toubro Equity 4.37
HDFC Bank Equity 4.16
G E Capital Services Debenture 4.14
Infosys Technologies Equity 3.98
Satyam Computer Services Equity 3.81
Grasim Industries Equity 3.55
ICICI Bank Equity 3.39
Export-Import Bank Debenture 3.23
ABB Equity 2.96
HDFC Bank Debenture 2.80
Hero Honda Motors Equity 2.19
BHEL Equity 2.18
Marico Equity 1.77
Maruti Suzuki India Equity 1.65
MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 68
A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Sterlite Industries (India) Equity 1.52


Reliance Communications Equity 1.49
Cummins India Equity 1.33
Loan Securitisation Trust - Bajaj Auto (ICICI Bank) Structured Obligation 1.24
Indicates an increase or decrease or no change in holding since last portfolio
Indicates a new holding since last portfolio
Sector Weightings
As on 30/04/08 % Net Assets
Financial Services 20.25
Technology 13.99
Diversified 8.86
Basic/Engineering 7.40
Energy 6.08
Automobile 5.54
Consumer Non-Durable 1.87
Health Care 1.65
Metals & Metal Products 1.52
Services 0.53
Construction 0.03

HDFC Balanced-G

The primary objective of the Scheme is to generate capital appreciation along with current
income form a combined portfolio of equity & equity related and debt & money market
instruments.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 69


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Type of Scheme Open Ended Fund Manager Chirag Setalvad .


Nature Equity & Debt SIP
Option Growth
STP
Inception Date Aug 10, 2000
Face Value (Rs/Unit) 10 SWP
Fund Size in Rs. Cr. 100.47 as on Mar Expense ratio(%) 2.21
31, 2008 Portfolio Turnover 18.28
Ratio(%)

Asset Management Company HDFC Asset Management Company Limited


Ramon House, 3rd Floor, H.T. Parekh Marg
169, Backbay Reclamation, Churchgate
Mumbai - 400020 Tel.- 22029111

Current Stats & Profile Trailing Returns


As on 16 May 2008 Fund Category
Year to Date -11.89 -15.31
Latest NAV
1-Month 2.84 3.82
36.005 3-Month -4.32 -4.27
(16/05/08) 1-Year 15.19 15.63
52-Week High 3-Year 21.23 24.71
41.979 5-Year 27.90 32.67
(04/01/08) Return Since Launch 17.92 --
52-Week Low Returns upto 1 year are absolute and over 1
year are annualised.
31.219
(13/06/07)
Fund Category

Hybrid:
Equity-oriented
Type

Open
End
Launch Date

August
2000
Risk Grade

Average
Return Grade

Below
Average
Net Assets (Cr)

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 70


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

107.09
(30/04/08)
Benchmark

Crisil
Balanced

Relative Performance (Fund Vs Category Average)

Asset Allocation Portfolio Concentration


As on 30/04/08 % Net Assets As on 30/04/08 % Net Assets
Equity 69.86 Top 3 Sectors 29.49
Debt 26.40 Top 5 Holdings 31.01
Others 3.74 Top 10 Holdings 52.42

As on
Top Holdings
30/04/08

Name of Holding Instrument % Net Assets

Reliance Industries Equity 7.57

Coromandel Fertilisers Equity 6.93

Balkrishna Inds. Equity 5.56

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 71


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Loan Securitisation Trust - Grasim Industries


Structured Obligation 5.54
Ltd.
Sun Pharmaceutical Inds. Equity 5.41

Federal Bank Equity 4.50


Non Convertible
HDFC 4.49
Debenture
Non Convertible
Indian Oil 4.39
Debenture
Loan Securitisation Trust - Bajaj Auto Ltd. Structured Obligation 4.23

ITC Equity 3.80

ICICI Bank Equity 3.70


Credit Asset Trust Series XVII (Shriram
Structured Obligation 3.68
Trading Finance)
Biocon Equity 3.66

Larsen & Toubro Equity 3.62

KEC International Equity 3.43

Infosys Technologies Equity 3.27

Crompton Greaves Equity 3.05

Sadbhav Engineering Equity 2.95


SBI Non Convertible 2.41
Debenture
Blue Star Equity 2.06

Bank of Baroda Equity 2.06

Amtek Auto Equity 2.06

V I P Industries Equity 1.89

BHEL Equity 1.78

Loan Securitisation Trust - Reliance Industries


Structured Obligation 1.66
Ltd.
Indicates an increase or decrease or no change in holding since last portfolio

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 72


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Indicates a new holding since last portfolio


Sector Weightings
As on 30/04/08 % Net Assets
Financial Services 10.26
Chemicals 10.16
Health Care 9.07
Basic/Engineering 8.26
Automobile 7.62
Energy 7.57
Consumer Non-Durable 3.80
Diversified 3.62
Technology 3.27
Construction 2.95
Consumer Durable 2.06
Metals & Metal Products 1.22

HDFC Prudence-G

The fund aims to provide periodic returns and capital appreciation over a long period of
time, from a judicious mix of equity and debt investments, with the aim to prevent/
minimise any capital erosion.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 73


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Type of Scheme Open Ended Fund Manager Prashant Jain .


Nature Equity & Debt SIP
Option Growth
STP
Inception Date Jan 31, 1994
Face Value (Rs/Unit) 10 SWP
2629.41 as on Mar Expense ratio(%) 1.87
Fund Size in Rs. Cr.
31, 2008 Portfolio Turnover
48.04
Ratio(%)

Asset Management Company HDFC Asset Management Company Limited


Ramon House, 3rd Floor, H.T. Parekh Marg
169, Backbay Reclamation, Churchgate
Mumbai - 400020 Tel.- 22029111

Current Stats & Profile Trailing Returns


As on 16 May 2008 Fund Category
Year to Date -18.27 -15.31
Latest NAV
1-Month 2.57 3.82
133.092 3-Month -6.60 -4.27
(16/05/08) 1-Year 12.49 15.63
52-Week High 3-Year 27.91 24.71
166.484 5-Year 37.19 32.67
(04/01/08) Return Since Launch 22.31 --
52-Week Low Returns upto 1 year are absolute and over 1
year are annualised.
118.062
(24/05/07)
Fund Category

Hybrid:
Equity-oriented
Type

Open
End
Launch Date

January
1994
Risk Grade

Below
Average
Return Grade

Above
Average
Net Assets (Cr)

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 74


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

2,790.31
(30/04/08)
Benchmark

Crisil
Balanced

Relative Performance (Fund Vs Category Average)

Asset Allocation Portfolio Concentration


As on 30/04/08 % Net Assets As on 30/04/08 % Net Assets
Equity 74.92 Top 3 Sectors 30.05
Debt 21.11 Top 5 Holdings 19.90
Others 3.97 Top 10 Holdings 33.46

Top Holdings As on 30/04/08

Name of Holding Instrument % Net Assets

ICICI Bank Equity 6.48


Dr. Reddy's Lab Equity 3.48
National Bank Agr. Rur. Devp Non Convertible Debenture 3.41
HDFC Non Convertible Debenture 3.27
ICICI Bank Commercial Paper 3.26
AIA Engineering Equity 3.04
ITC Equity 2.72
Apollo Tyres Equity 2.68
Divi's Laboratories Ltd. Equity 2.59
Zee Entertainment Enterprises Equity 2.53

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 75


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

SBI Equity 2.45


Glaxosmithkline Con. Health Equity 2.39
Crompton Greaves Equity 2.38
Oil & Natural Gas Corpn. Equity 2.28
Bank of Baroda Equity 2.28
SBI Non Convertible Debenture 2.22
United Phosphorus Ltd. Equity 2.05
KEC International Equity 1.96
Amtek Auto Equity 1.90
Elecon Engineering Co. Equity 1.81
Maytas Infra Equity 1.80
Federal Bank Equity 1.76
Dishman Pharma & Chemicals Equity 1.71
Gammon India Equity 1.69
Sundaram Finance Non Convertible Debenture 1.63
Indicates an increase or decrease or no change in holding since last portfolio
Indicates a new holding since last portfolio
Sector Weightings
As on 30/04/08 % Net Assets
Financial Services 13.40
Health Care 9.01
Basic/Engineering 7.64
Consumer Non-Durable 7.52
Automobile 7.13
Services 6.76
Chemicals 5.93
Construction 5.61
Metals & Metal Products 5.00
Energy 4.12
Textiles 2.15
Diversified 0.65
Technology 0.00 '

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 76


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

ICICI Pru Balanced-G

Aims to invest in equity and debt oriented securities so as to give investor balanced
returns

Type of Scheme Open Ended Rahul Goswami ,


Nature Equity & Debt Fund Manager Munzal Shah ,
Option Growth Amit Mehta .
Inception Date Oct 7, 1999 SIP
Face Value
10 STP
(Rs/Unit)
361.34 as on Apr SWP
Fund Size in Rs. Cr.
30, 2008 Expense ratio(%) 2.26
Portfolio Turnover
183
Ratio(%)

Asset Management Company ICICI Prudential


Asset Management
Company Ltd.
8th Floor, Peninsula
Tower
Ganpatrao Kadam
Marg, Lower Parel
Mumbai - 400013
Tel.- 24997000
Current Stats & Profile Trailing Returns
Latest NAV 39.37 (16/05/08) As on 16 May 2008 Fund Category
52-Week High 47.94 (07/01/08) Year to Date -16.77 -15.31
52-Week Low 34.71 (21/08/07) 1-Month 4.35 3.82
Hybrid: Equity- 3-Month -5.84 -4.27
Fund Category
oriented 1-Year 10.68 15.63
Type Open End 3-Year 25.02 24.71
Launch Date October 1999 5-Year 31.59 32.67
Risk Grade Average Return Since
17.25 --
Return Grade Average Launch
Net Assets (Cr) 361.34 (30/04/08) Returns upto 1 year are absolute and

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 77


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Benchmark Crisil Balanced over 1 year are annualised.

Relative Performance (Fund Vs Category Average)

Allocation Portfolio Concentration


As on 30/04/08 % Net Assets As on 30/04/08 % Net Assets
Equity 67.71 Top 3 Sectors 29.37
Debt 23.42 Top 5 Holdings 30.63
Others 8.87 Top 10 Holdings 49.81

Top Holdings As on 30/04/08

Name of Holding Instrument % Net Assets

Power Finance Corpn. Bonds 8.32


Reliance Industries Equity 8.14
8.2% G O I 2022 GOI Securities 5.49
Nifty Futures Equity Derivatives 5.08
ICICI Bank Equity 3.60
Larsen & Toubro Equity 3.51
AIA Engineering Equity 3.51
HDFC Debenture 3.47
Jain Irrigation Systems Equity 2.97
BHEL Equity 2.86
SBI Bonds 2.86
L I C Housing Fin. Bonds 2.78

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 78


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Century Textiles & Inds. Equity 2.55


Punjab National Bank Equity 2.47
Time Technoplast Equity 2.44
Sterlite Industries (India) Equity 2.41
Reliance Communications Equity 2.40
Sadbhav Engineering Equity 2.39
Bharti Airtel Equity 2.37
Aditya Birla Nuvo Equity 2.10
Voltas Equity 1.93
Sterlite Technologies Equity 1.79
Zee Entertainment Enterprises Equity 1.77
Grasim Industries Equity 1.72
SAIL Equity 1.67
Indicates an increase or decrease or no change in holding since last portfolio
Indicates a new holding since last portfolio
Sector Weightings
As on 30/04/08 % Net Assets
Diversified 11.81
Technology 8.84
Energy 8.72
Metals & Metal Products 8.54
Financial Services 8.40
Chemicals 5.41
Construction 3.86
Basic/Engineering 2.86
Services 2.71
Automobile 1.48

ING Balanced-G

The fund seeks to generate long term growth of capital and current income from a portfolio
of equity and fixed income securities.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 79


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Type of Scheme Open Ended Mr Ramanathan K ,


Fund Manager
Nature Equity & Debt Ankit Sancheti .
Option Growth SIP
Inception Date Apr 17, 2000
STP
Face Value (Rs/Unit) 10
6.89 as on Mar 31, SWP
Fund Size in Rs. Cr.
2008 Expense ratio(%) 2.50
Portfolio Turnover
114
Ratio(%)

Asset Management Company ING Investment Management (India) Pvt Ltd.


17, Lincoln Lodge,
Altamount Road,
Mumbai - 400036 Tel.- 39827999

Current Stats & Profile Trailing Returns


As on 16 May 2008 Fund Category
Year to Date -15.74 -15.31
Latest NAV
1-Month 4.17 3.82
22.49 3-Month -4.70 -4.27
(16/05/08) 1-Year 18.87 15.63
52-Week High 3-Year 23.64 24.71
27.05 5-Year 29.23 32.67
(04/01/08) Return Since Launch 10.54 --
52-Week Low Returns upto 1 year are absolute and over 1
year are annualised.
18.89
(21/08/07)
Fund Category

Hybrid:
Equity-oriented
Type

Open
End
Launch Date

April
2000
Risk Grade

Average
Return Grade

Average

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 80


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Net Assets (Cr)

7.20
(30/04/08)
Benchmark

Crisil
Balanced

Relative Performance (Fund Vs Category Average)

Asset Allocation Portfolio Concentration


As on 30/04/08 % Net Assets As on 30/04/08 % Net Assets
Equity 76.83 Top 3 Sectors 40.72
Debt 15.72 Top 5 Holdings 29.90
Others 7.45 Top 10 Holdings 42.50

Top Holdings As on 30/04/08

Name of Holding Instrument % Net Assets

HDFC Debenture 13.63


Reliance Industries Equity 6.97
Infosys Technologies Equity 3.34
HDFC Equity 3.08
Bharti Airtel Equity 2.88
ITC Equity 2.82
Larsen & Toubro Equity 2.55
BHEL Equity 2.52
ICICI Bank Equity 2.41
Reliance Communications Equity 2.30

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 81


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

HDFC Bank Equity 2.18


L I C Housing Fin. Equity 2.10
Shriram Transport Finance Debenture 2.09
Oil & Natural Gas Corpn. Equity 2.06
Maruti Suzuki India Equity 2.00
DLF Ltd. Equity 1.89
Divi's Laboratories Ltd. Equity 1.88
Sun Pharmaceutical Inds. Equity 1.86
Sintex Industries Equity 1.82
Reliance Petroleum Equity 1.76
Tata Consultancy Services Equity 1.73
Glenmark Pharma. Equity 1.68
Ranbaxy Laboratories Equity 1.67
Jai Prakash Associates Equity 1.64
Bharati Shipyard Equity 1.63
Indicates an increase or decrease or no change in holding since last portfolio
Indicates a new holding since last portfolio
Sector Weightings
As on 30/04/08 % Net Assets
Energy 16.42
Financial Services 12.57
Technology 11.73
Diversified 10.33
Health Care 7.09
Services 5.57
Basic/Engineering 5.05
Consumer Non-Durable 4.18
Automobile 2.00
Construction 1.89

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 82


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

JM Balanced-G

Aims to provide investors with liquidity and current income alongwith capital
appreciation.

Type of Scheme Open Ended Sanjay Kumar


Fund Manager
Nature Equity & Debt Chhabaria .
Option Growth SIP
Inception Date Dec 22, 1994
STP
Face Value
10 SWP
(Rs/Unit)
Fund Size in Rs. 59.23 as on Mar Expense ratio(%) 2.50
Cr. 31, 2008
Portfolio Turnover
108.94
Ratio(%)

Asset Management Company JM Financial Asset


Management Private
Ltd.
5th Floor, A Wing ,
Laxmi Tower
Bandra Kurla Complex.

Mumbai - 400051 Tel.-


39877777
Current Stats & Profile Trailing Returns
Latest NAV 26.2186 (16/05/08) As on 16 May 2008 Fund Category
52-Week High 34.7544 (02/01/08) Year to Date -22.90 -15.31
52-Week Low 22.5575 (24/03/08) 1-Month 5.50 3.82
Fund Category Hybrid: Equity- 3-Month -7.66 -4.27
oriented 1-Year 9.47 15.63
Type Open End 3-Year 26.54 24.71
Launch Date December 1994 5-Year 27.41 32.67
Risk Grade Above Average Return Since
16.56 --
Return Grade Average Launch
Net Assets (Cr) 62.92 (30/04/08) Returns upto 1 year are absolute and
Benchmark Crisil Balanced over 1 year are annualised.

Relative Performance (Fund Vs Category Average)

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 83


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Asset Allocation Portfolio Concentration


As on 30/04/08 % Net Assets As on 30/04/08 % Net Assets
Equity 75.70 Top 3 Sectors 43.83
Debt 16.43 Top 5 Holdings 32.66
Others 7.87 Top 10 Holdings 57.79

Top Holdings As on 30/04/08

Name of Holding Instrument % Net Assets

Century Textiles & Inds. Equity 7.13


I V R C L Infra. & Projects Equity 6.83
Union Bank of India Floating Rate Bond 6.68
3i Infotech Equity 6.34
Unitech Equity 5.68
Karnataka Bank Equity 5.41
Balrampur Chini Mills Equity 5.15
ICICI Bank Equity 5.08
Citifinancial Consumer Finance Privately Placed Debts 4.79
Maharashtra Seamless Equity 4.70
Ruchi Soya Inds. Equity 4.14
Unitech Equity Derivatives 3.70
PSL Equity 3.05
BHEL Equity 2.93
Citicorp Maruti Fin. Privately Placed Debts 2.57
Cholamandalam DBS Finance Equity 2.39

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 84


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Emco Equity 2.33


Renaissance Jewellery Equity 2.11
Andhra Bank Equity 2.05
Areva T&D India Equity 1.99
Kalindee Rail Nirman Equity 1.37
IRFC Floating Rate Bond 1.28
Apollo Tyres Equity 1.28
Era Infra Engineering Equity 1.21
Mcnally Bharat Engg. Co. Equity 0.82
Indicates an increase or decrease or no change in holding since last portfolio
Indicates a new holding since last portfolio
Sector Weightings
As on 30/04/08 % Net Assets
Construction 19.61
Financial Services 14.93
Consumer Non-Durable 9.29
Metals & Metal Products 7.75
Basic/Engineering 7.25
Diversified 7.13
Technology 6.34
Consumer Durable 2.11
Automobile 1.28
Energy 0.01

Kotak Balance

The objective of the Scheme is to achieve growth by investing in equity and equity related
instruments, balanced with income generation by investing in debt and money market
instruments.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 85


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Type of Scheme Open Ended Ritesh Jain , Krishna


Nature Equity & Debt Fund Manager Sanghvi , Sanjib
Option Growth Guha .
Inception Date Nov 29, 1999 SIP
Face Value (Rs/Unit) 10 STP
69.6 as on Mar 31,
Fund Size in Rs. Cr. SWP
2008
Expense ratio(%) 2.50
Portfolio Turnover
100.99
Ratio(%)

Asset Management Company Kotak Mahindra Asset Management Company Ltd.


5A, 5th Floor, Bakhtawar,
229, Nariman Point
Mumbai - 400021 Tel.- 56384444

Current Stats & Profile Trailing Returns


Latest NAV 22.993 (16/05/08) As on 16 May 2008 Fund Category
52-Week High 34.091 (04/01/08) Year to Date -18.13 -15.31
52-Week Low 21.287 (04/04/08) 1-Month 4.21 3.82
Hybrid: Equity- 3-Month -6.13 -4.27
Fund Category
oriented 1-Year 21.18 15.63
Type Open End 3-Year 28.64 24.71
Launch Date November 1999 5-Year 35.07 32.67
Risk Grade Above Average Return Since Launch 21.36 --
Return Grade Above Average Returns upto 1 year are absolute and over 1 year
Net Assets (Cr) 75.87 (30/04/08) are annualised.
Benchmark Crisil Balanced

Relative Performance (Fund Vs Category Average)

Asset Allocation Portfolio Concentration


As on 30/04/08 % Net Assets As on 30/04/08 % Net Assets
Equity 66.16 Top 3 Sectors 32.65

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 86


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Debt 22.47 Top 5 Holdings 27.29


Others 11.37 Top 10 Holdings 39.56

Top Holdings As on 30/04/08

Name of Holding Instrument % Net Assets

IRFC Bonds 6.63


BHW Birla Home Finance Debenture 6.58
Citicorp Finance Debenture 5.27
Reliance Industries Equity 4.82
ICICI Bank Debenture 3.99
Oil & Natural Gas Corpn. Equity 2.72
Kotak Mahindra Bank Term Deposits 2.64
Larsen & Toubro Equity 2.47
HDFC Equity 2.25
Bharti Airtel Equity 2.19
Axis Bank Equity 2.01
ITC Equity 1.81
Infosys Technologies Equity 1.79
SBI Equity 1.78
Reliance Communications Equity 1.73
Satyam Computer Services Equity 1.65
Tata Steel Equity 1.62
Reliance Infrastructure Equity 1.60
Welspun-Gujarat Stahl Rohren Equity 1.54
SAIL Equity 1.52
Union Bank of India Equity 1.48
Nagarjuna Construction Co. Equity 1.40
Aditya Birla Nuvo Equity 1.34
G A I L (I) Equity 1.31
Punj Lloyd Equity 1.30
Indicates an increase or decrease or no change in holding since last portfolio
Indicates a new holding since last portfolio
Sector Weightings
As on 30/04/08 % Net Assets
Energy 13.73
Financial Services 10.31

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 87


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Technology 8.61
Metals & Metal Products 8.30
Construction 7.19
Services 5.13
Diversified 4.79
Basic/Engineering 2.74
Consumer Non-Durable 1.81
Automobile 0.97
Chemicals 0.96
Health Care 0.95
Consumer Durable 0.67

LICMF Balanced-G

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 88


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

The Scheme aims to provide regular flow of dividend and capital appreciation
especially when the unit are held for a longer period.

Type of Scheme Open Ended Bichitra


Fund Manager
Nature Equity & Debt Mahapatra .
Option Growth SIP
Inception Date Jan 1, 1991
STP
Face Value
10 SWP
(Rs/Unit)
Fund Size in Rs. 24.53 as on Mar Expense ratio(%) 1.75
Cr. 31, 2008
Portfolio Turnover
67
Ratio(%)

Last Divdend Declared NA


Minimum Investment
1000
(Rs)
Purchase Redemptions Daily
NAV Calculation Daily
Amount Bet. 0 to 10000000 then Entry load is 2.25%. and
Entry Load
Amount greater than 10000001 then Entry load is 0%.
Exit Load Exit Load is 0%.
Asset Management Company Jeevan Bima Sahyog Asset Management
Company Ltd.
Industrial Assurance Building, 4 th Floor
Opp. Churchgate Station
Mumbai - 400020 Tel.- 22885971
Current Stats & Profile Trailing Returns
Latest NAV 54.7488 (16/05/08) As on 16 May 2008 Fund Category
52-Week High 76.7747 (03/01/08) Year to Date -26.53 -15.31
52-Week Low 42.7939 (13/06/07) 1-Month 5.71 3.82
Hybrid: Equity- 3-Month -6.77 -4.27
Fund Category
oriented 1-Year 24.55 15.63
Type Open End 3-Year 25.78 24.71
Launch Date November 2003 5-Year -- 32.67
Risk Grade High Return Since
21.29 --
Return Grade Above Average Launch
Net Assets (Cr) 27.40 (30/04/08) Returns upto 1 year are absolute and
Benchmark Crisil Balanced over 1 year are annualised.

Relative Performance (Fund Vs Category Average)

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 89


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Asset Allocation Portfolio Concentration


As on 30/04/08 % Net Assets As on 30/04/08 % Net Assets
Equity 70.98 Top 3 Sectors 40.52
Debt 25.62 Top 5 Holdings 39.56
Others 3.39 Top 10 Holdings 65.90

Top Holdings As on 30/04/08

Name of Holding Instrument % Net Assets

Era Infra Engineering Debenture 10.95


Core Projects & Technologies Equity 7.54
DLF Universal Ltd. Debenture 7.37
Bajaj Hindusthan Debenture 7.30
Power Grid Corpn. Equity 6.40
Lanco Infratech Equity 5.89
Larsen & Toubro Equity 5.48
Infrastructure Devp. Fin. Co. Equity 5.18
Bharti Airtel Equity 4.92
Reliance Communications Equity 4.87
National Thermal Power Corp. Equity 4.31
Jaiprakash Hydro-Power Equity 3.87
PTC India Equity 3.80
Astra Microwave Products Equity 3.40
PVR Ltd. Equity 2.90
Punj Lloyd Equity 2.00
Power Finance Corpn. Equity 1.77
SAIL Equity 1.69
Century Textiles & Inds. Equity 1.59
UCO Bank Equity 1.54

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 90


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Hindustan Oil Exploration Co. Equity 1.06


Srei Infrastructure Finance Equity 1.04
Apollo Tyres Equity 1.00
Mercator Lines Equity 0.73
Indicates an increase or decrease or no change in holding since last portfolio
Indicates a new holding since last portfolio
Sector Weightings
As on 30/04/08 % Net Assets
Energy 19.44
Technology 13.19
Construction 7.89
Financial Services 7.76
Textiles 7.54
Diversified 7.07
Services 5.40
Metals & Metal Products 1.69
Automobile 1.00

Magnum Balanced-G

The fund
Type aims to provide
of Scheme to its Investors growth through capital
Open Ended Sanjay Sinha,
appreciation. It also plans to provide periodic
Fundincome through declaration of
Manager
Nature Equity & Debt Pankaj Gupta .
dividends.
Option Growth SIP
Inception Date Oct 31, 1995
STP
Face Value
10 SWP
(Rs/Unit)
Fund Size in Rs. 371.06 as on Mar Expense ratio(%) 2.35
Cr. 31, 2008
Portfolio
Turnover 20
Ratio(%)

Asset Management Company SBI Funds Management Ltd.


191, Maker Tower E Wing,

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 91


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Cuffe Parade
Mumbai - 400005 Tel.- 22180221
Current Stats & Profile Trailing Returns
Latest NAV 42.29 (16/05/08) As on 16 May 2008 Fund Category
52-Week High 53.43 (04/01/08) Year to Date -19.42 -15.31
52-Week Low 36.5 (13/06/07) 1-Month 1.95 3.82
Hybrid: Equity- 3-Month -7.14 -4.27
Fund Category
oriented 1-Year 15.70 15.63
Type Open End 3-Year 29.77 24.71
Launch Date October 1995 5-Year 42.37 32.67
Risk Grade Average Return Since Launch 20.09 --
Return Grade High Returns upto 1 year are absolute and over 1
Net Assets (Cr) 408.89 (30/04/08) year are annualised.
Benchmark Crisil Balanced

Relative Performance (Fund Vs Category Average)

Asset Allocation Portfolio Concentration


As on 30/04/08 % Net Assets As on 30/04/08 % Net Assets
Equity 69.60 Top 3 Sectors 35.69
Debt 14.64 Top 5 Holdings 22.16
Others 15.76 Top 10 Holdings 34.62

Top Holdings As on 30/04/08

Name of Holding Instrument % Net Assets

Magma Shrachi Finance Non Convertible Debenture 6.11


Reliance Industries Equity 6.08
HDFC Non Convertible Debenture 3.66
Larsen & Toubro Equity 3.56

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 92


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

BHEL Equity 2.75


Sintex Industries Equity 2.60
Oil & Natural Gas Corpn. Equity 2.58
Blue Star Equity 2.47
SBI Equity 2.43
Infosys Technologies Equity 2.39
ICICI Bank Equity 2.38
Kotak Mahindra Bank Certificate of Deposit 2.33
Nagarjuna Construction Co. Equity 2.26
Reliance Communications Equity 2.12
Bharti Airtel Equity 2.04
BL Kashyap & Sons Equity 1.95
I V R C L Infra. & Projects Equity 1.90
Sterlite Industries (India) Equity 1.77
Shree Cement Equity 1.70
S K F India Equity 1.65
Sun Pharmaceutical Inds. Equity 1.60
ITC Equity 1.46
Sesa Goa Equity 1.44
Sagar Cements Equity 1.31
U T V Software Communications Equity 1.29
Indicates an increase or decrease or no change in holding since last portfolio
Indicates a new holding since last portfolio
Sector Weightings
As on 30/04/08 % Net Assets
Energy 12.18
Construction 12.04
Technology 11.47
Diversified 7.28
Basic/Engineering 5.60
Financial Services 5.43
Metals & Metal Products 3.22
Services 2.60
Consumer Durable 2.47
Automobile 2.32
Health Care 1.60

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 93


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Consumer Non-Durable 1.46

Principal Balanced-G

Aims to generate long term capital appreciation and current income by investing in a
portfolio of equity, equity related securities and fixed income securities.

Type of Scheme Open Ended Fund Manager Pankaj Tibrewal .


Nature Equity & Debt SIP
Option Growth
STP
Inception Date Jan 14, 2000
Face Value SWP
10
(Rs/Unit) Expense ratio(%) 2.42
Fund Size in Rs. 138.78 as on Mar
Portfolio Turnover
Cr. 31, 2008 114
Ratio(%)

Asset Management Company PRINCIPAL PNB


Asset Management
Company Pvt. Ltd.
3rd Floor, Exchange
Plaza, B-wing
A NSE Building,
Bandra Kurla
Complex, Bandra-E
Mumbai - 400051 Tel.-
22021111
Current Stats & Profile Trailing Returns
Latest NAV 27.12 (16/05/08) As on 16 May 2008 Fund Category
52-Week High 33.06 (04/01/08) Year to Date -16.35 -15.31
52-Week Low 22.19 (13/06/07) 1-Month 4.95 3.82
Hybrid: Equity- 3-Month -4.44 -4.27
Fund Category
oriented 1-Year 20.96 15.63
Type Open End 3-Year 22.79 24.71
Launch Date December 1999 5-Year 32.86 32.67
Risk Grade Above Average Return Since
12.61 --
Return Grade Average Launch
Net Assets (Cr) 91.07 (30/04/08) Returns upto 1 year are absolute and
Benchmark Crisil Balanced over 1 year are annualised.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 94


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Relative Performance (Fund Vs Category Average)

Asset Allocation Portfolio Concentration


As on 30/04/08 % Net Assets As on 30/04/08 % Net Assets
Equity 66.14 Top 3 Sectors 34.96
Debt 25.52 Top 5 Holdings 32.06
Others 8.34 Top 10 Holdings 48.04

Top Holdings As on 30/04/08

Name of Holding Instrument % Net Assets

Federal Bank Commercial Paper 12.39


Reliance Industries Equity 6.70
IDBI Commercial Paper 5.00
UCO Bank Commercial Paper 4.13
SBI Equity 3.84
Tata Steel Equity 3.33
Reliance Capital Equity 3.29
ITC Equity 3.22
Bajaj Holdings & Investment Equity 3.14
State Bank of Patiala Commercial Paper 3.00
Tech Mahindra Equity 2.55
ICICI Bank Equity 2.42
Jai Prakash Associates Equity 2.34
ABG Shipyard Equity 2.31
United Breweries Equity 2.11
Pantaloon Retail (India) Equity 2.09
HDFC Equity 2.08
Grasim Industries Equity 2.07
Gillette Equity 2.01

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 95


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Bharti Airtel Equity 2.00


Oil & Natural Gas Corpn. Equity 1.96
Kotak Mahindra Bank Equity 1.92
Indian Bank Equity 1.88
Mahindra & Mahindra Equity 1.87
Mundra Port & Special Economic Zone Equity 1.79
Indicates an increase or decrease or no change in holding since last portfolio
Indicates a new holding since last portfolio
Sector Weightings
As on 30/04/08 % Net Assets
Financial Services 18.94
Energy 8.66
Metals & Metal Products 7.36
Automobile 7.32
Consumer Non-Durable 6.78
Diversified 5.62
Technology 4.55
Services 4.09
Basic/Engineering 2.23
Chemicals 0.59

Reliance Regular Savings Balanced

The primary investment objective of this option is to generate consistent returns and
appreciation of capital by investing in a mix of securities comprising of equity, equity
related instruments & fixed income instruments.

Type of Scheme Open Ended Ashwani Kumar ,


Nature Equity & Debt Fund Manager Prashant
Option Growth R.Pimple .
Inception Date May 10, 2005 SIP
Face Value
10 STP
(Rs/Unit)
27.4 as on Apr 30, SWP
Fund Size in Rs. Cr.
2008 Expense ratio(%) 2.25
Portfolio Turnover
130
Ratio(%)

Asset Management Company Reliance Capital


Asset Management

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 96


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Ltd.
Kamala Mills
Compound, Trade
World, B - Wing
7th Floor, Senapati
bapat marg, Lower
parel (West)
Mumbai - 400013
Tel.- 30414800

Current Stats & Profile Trailing Returns


Latest NAV 14.5335 (16/05/08) As on 16 May 2008 Fund Category
52-Week High 17.5339 (04/01/08) Year to Date -15.60 -15.31
52-Week Low 11.7373 (13/06/07) 1-Month 4.77 3.82
Hybrid: Equity- 3-Month -4.28 -4.27
Fund Category
oriented 1-Year 21.88 15.63
Type Open End 3-Year -- 24.71
Launch Date May 2005 5-Year -- 32.67
Risk Grade Not Rated Return Since
13.18 --
Return Grade Not Rated Launch
Net Assets (Cr) 27.40 (30/04/08) Returns upto 1 year are absolute and
Benchmark Crisil Balanced over 1 year are annualised.

Relative Performance (Fund Vs Category Average)

Asset Allocation Portfolio Concentration


As on 30/04/08 % Net Assets As on 30/04/08 % Net Assets
Equity 70.53 Top 3 Sectors 37.66
Debt 0.00 Top 5 Holdings 34.81
Others 29.47 Top 10 Holdings 60.58

Top Holdings As on 30/04/08

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 97


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Name of Holding Instrument % Net Assets

Others Cash 29.47


Reliance Industries Equity 7.63
National Thermal Power Corp. Equity 7.18
Wipro Equity 7.14
DLF Ltd. Equity 6.43
ICICI Bank Equity 6.42
Bharat Electronics Equity 5.84
Take Solutions Equity 5.50
Divi's Laboratories Ltd. Equity 5.48
Century Textiles & Inds. Equity 4.78
Siemens Equity 4.17
BHEL Equity 3.47
Bank of Baroda Equity 3.45
Grasim Industries Equity 3.03
Indicates an increase or decrease or no change in holding since last portfolio
Indicates a new holding since last portfolio
Sector Weightings
As on 30/04/08 % Net Assets
Energy 14.82
Technology 12.97
Financial Services 9.87
Diversified 7.81
Basic/Engineering 7.65
Construction 6.43
Services 5.50
Health Care 5.48

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 98


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Sundaram BNP Paribas Balanced Reg-G

The scheme seeks to generate capital appreciation and current income through a mix
of investments in Equities and Fixed Income Securities.

Type of Scheme Open Ended Satish Ramanathan


Fund Manager
Nature Equity & Debt , Rahul Pal .
Option Growth SIP
Inception Date May 25, 2000
STP
Face Value
10 SWP
(Rs/Unit)
46.04 as on Mar Expense ratio(%) 2.49
Fund Size in Rs. Cr.
31, 2008
Portfolio Turnover
17
Ratio(%)

Asset Management Company Sundaram Asset


Management Co.
Ltd.
46, Whites Road
2nd Floor,
Royapettah
Chennai - 600014
Tel.- 28583362
Current Stats & Profile Trailing Returns
Latest NAV 39.4636 (16/05/08) As on 16 May 2008 Fund Category
52-Week High 46.8763 (07/01/08) Year to Date -14.47 -15.31
52-Week Low 33.834 (13/06/07) 1-Month 4.25 3.82
Hybrid: Equity- 3-Month -7.12 -4.27
Fund Category
oriented 1-Year 17.22 15.63
Type Open End 3-Year 24.41 24.71
Launch Date May 2000 5-Year 29.51 32.67
Risk Grade Below Average Return Since
18.77 --
Return Grade Average Launch
Net Assets (Cr) 44.35 (30/04/08) Returns upto 1 year are absolute and
Benchmark Crisil Balanced over 1 year are annualised.

Relative Performance (Fund Vs Category Average)

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 99


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Asset Allocation Portfolio Concentration


As on 30/04/08 % Net Assets As on 30/04/08 % Net Assets
Equity 68.15 Top 3 Sectors 45.90
Debt 23.59 Top 5 Holdings 38.33
Others 8.26 Top 10 Holdings 63.43

Top Holdings As on 30/04/08

Name of Holding Instrument % Net Assets

Reliance Industries Equity 8.90

SBI Equity 8.56

Tata Steel Equity 7.37

6.7% Power Finance Corpn. 01/09/2010 Bonds 6.76

8.6% Mahindra & Mahindra Financial Services 15/09/2008 Bonds 6.73

ICICI Bank Equity 5.82

8.2% G O I 2022 GOI Securities 5.59

ABB Equity 5.27

Union Bank of India 23/04/2012 Debenture 4.51

HDFC Equity 3.91

Glenmark Pharma. Equity 3.74

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 100


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Oil & Natural Gas Corpn. Equity 3.20

SAIL Equity 2.96

Grasim Industries Equity 2.91

BHEL Equity 2.59

ING Vysya Bank Equity 2.50

Jindal Saw Equity 2.46

Larsen & Toubro Equity 2.30

Tata Consultancy Services Equity 1.97

United Phosphorus Ltd. Equity 1.28

Bharti Airtel Equity 1.15

Sundaram-Clayton Equity 0.53

Wabco-TVS India Ltd. Equity 0.39

Rural Electrification Corpn. Equity 0.21

OnMobile Global Equity 0.12


Indicates an increase or decrease or no change in holding since last portfolio
Indicates a new holding since last portfolio
Sector Weightings
As on 30/04/08 % Net Assets
Financial Services 20.80
Metals & Metal Products 12.79
Energy 12.31
Basic/Engineering 7.86
Diversified 5.22
Health Care 3.74
Technology 3.24

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 101


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Chemicals 1.28
Automobile 0.91

Tata Balanced-G

Aims to invest in equity and debt oriented securities so as to give investor balanced returns.

Type of Scheme Open Ended Fund Manager M Venugopal .


Nature Equity & Debt SIP
Option Growth
STP
Inception Date Oct 7, 1995
Face Value (Rs/Unit) 10 SWP
229.05 as on Apr 30, Expense ratio(%) 2.42
Fund Size in Rs. Cr.
2008 Portfolio Turnover
68
Ratio(%)

Asset Management Company Tata Asset Management


Private Limited
Mulla House, Ground Floor,
51, M. G. Road, Fort
Mumbai - 400001 Tel.-
66315191

Current Stats & Profile Trailing Returns


As on 16 May 2008 Fund Category
Year to Date -18.63 -15.31
Latest NAV
1-Month 4.50 3.82
62.3556 3-Month -6.52 -4.27
(16/05/08) 1-Year 17.63 15.63
52-Week High 3-Year 27.31 24.71
78.9112 5-Year 36.80 32.67
(04/01/08) Return Since Launch 18.48 --
52-Week Low Returns upto 1 year are absolute and over 1
year are annualised.
53.1613
(13/06/07)
Fund Category

Hybrid:
Equity-oriented
Type

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 102


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Open
End
Launch Date

October
1995
Risk Grade

Average
Return Grade

Average
Net Assets (Cr)

229.05
(30/04/08)
Benchmark

Crisil
Balanced

Relative Performance (Fund Vs Category Average)

Asset Allocation Portfolio Concentration


As on 30/04/08 % Net Assets As on 30/04/08 % Net Assets
Equity 68.98 Top 3 Sectors 27.78
Debt 21.87 Top 5 Holdings 18.87
Others 9.15 Top 10 Holdings 30.12

Top Holdings As on 30/04/08

Name of Holding Instrument % Net Assets

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 103


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Export-Import Bank Debenture 6.42


State Bank of Mysore Debenture 4.00
Hindustan Unilever Equity 3.27
Power Finance Corpn. Debenture 2.61
Reliance Industries Equity 2.57
Reliance Communications Equity 2.38
National Bank Agr. Rur. Devp Debenture 2.23
IRFC Debenture 2.22
Aditya Birla Nuvo Equity 2.22
HDFC Debenture 2.20
Nestle India Equity 2.03
Corporation Bank Debenture 2.00
Tanla Solutions Ltd. Equity 1.84
Tata Steel Equity 1.79
Union Bank of India Equity 1.72
Axis Bank Equity 1.72
Larsen & Toubro Equity 1.70
I V R C L Infra. & Projects Equity 1.68
Jindal Steel & Power Equity 1.57
Century Textiles & Inds. Equity 1.52
Tata Chemicals Equity 1.42
Crompton Greaves Equity 1.40
BHEL Equity 1.40
Gujarat Mineral Devp. Corpn. Equity 1.40
Shiv-Vani Oil & Gas Equity 1.39
Indicates an increase or decrease or no change in holding since last portfolio
Indicates a new holding since last portfolio
Sector Weightings
As on 30/04/08 % Net Assets
Metals & Metal Products 10.16
Basic/Engineering 8.88
Financial Services 8.74
Energy 8.57
Technology 6.45
Diversified 6.30
Consumer Non-Durable 6.11
Construction 4.69
Services 4.04
Chemicals 3.87
Automobile 1.17

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 104


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

UTI Balanced-G

Aims to invest in portfolio of equity/equity related securities and fixed income


securities (debt & money market instruments) with a view to generating regular
income together with capital appreciation.

Type of Scheme Open Ended Amandeep


Fund Manager
Nature Equity & Debt Chopra .
Option Growth SIP
Inception Date Feb 12, 1995
STP
Face Value
10 SWP
(Rs/Unit)
987.63 as on Mar Expense ratio(%) 2.02
Fund Size in Rs. Cr.
31, 2008
Portfolio Turnover
11.88
Ratio(%)

Asset Management Company UTI Asset


Management
Company Ltd.
UTI Towers, GN
Bloack
Bandra Kurla
Complex, Bandra
(E)
Mumbai - 400051
Tel.- 6678 6666
Current Stats & Profile Trailing Returns
Latest NAV 63.83 (16/05/08) As on 16 May 2008 Fund Category
52-Week High 77.13 (07/01/08) Year to Date -15.66 -15.31
52-Week Low 55.89 (13/06/07) 1-Month 3.13 3.82
Hybrid: Equity- 3-Month -6.26 -4.27
Fund Category
oriented 1-Year 13.90 15.63
Type Open End 3-Year 20.66 24.71
Launch Date March 1995 5-Year 26.71 32.67
Risk Grade Average Return Since
20.92 --
Return Grade Below Average Launch
Net Assets (Cr) 1,047.37 (30/04/08) Returns upto 1 year are absolute and
Benchmark Crisil Balanced over 1 year are annualised.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 105


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Relative Performance (Fund Vs Category Average)

Asset Allocation Portfolio Concentration


As on 30/04/08 % Net Assets As on 30/04/08 % Net Assets
Equity 73.14 Top 3 Sectors 35.68
Debt 22.96 Top 5 Holdings 23.72
Others 3.90 Top 10 Holdings 37.76

As on
Top Holdings
30/04/08

Name of Holding Instrument % Net Assets

Reliance Industries Equity 5.99

SBI Equity 4.87


Corporate Loan Securitisation Trust Series
Structured Obligation 4.33
49
Larsen & Toubro Equity 4.30

BHEL Equity 4.23

Grasim Industries Equity 3.01

HDFC Equity 2.87


Siemens Equity 2.78

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 106


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Satyam Computer Services Equity 2.73

Axis Bank Equity 2.65

Infosys Technologies Equity 2.60

Madras Cements Equity 2.58


Non Convertible
HDFC 2.35
Debenture
HDFC Deep Discount Bonds 2.22

Reliance Communications Equity 2.21


Non Convertible
L I C Housing Fin. 2.03
Debenture
Canara Bank Term Deposits 1.91

Tata Steel Equity 1.87

Bharat Electronics Equity 1.84

Bank Of India Equity 1.74

Tata Power Equity 1.73


Non Convertible
Reliance Industries 1.69
Debenture
Hindalco Inds. Equity 1.62

National Thermal Power Corp. Equity 1.50

Tata Chemicals Equity 1.44


Indicates an increase or decrease or no change in holding since last portfolio
Indicates a new holding since last portfolio
Sector Weightings
As on 30/04/08 % Net Assets
Financial Services 14.26
Basic/Engineering 10.83
Technology 10.59

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 107


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Energy 9.23
Diversified 8.35
Construction 6.76
Automobile 3.84
Metals & Metal Products 3.63
Health Care 2.08
Chemicals 1.44
Consumer Non-Durable 1.29
Services 0.84

RESEARCH METHODOLOGY
In this I have used the primary data analysis as well as the secondary data analysis.

PRIMARY DATA ANALYSIS

In the primary data analysis I have analyze what the investor check to know the performance of
the fund before making an investment. According to that analysis I have taken the parameters
for the secondary data analysis.

SECONDARY DATA ANALYSIS

The fundamental analysis for the comparison of Balanced funds, to study and analyze the funds,
certain parameters have been selected to deduce the conclusive study. 21mutual funds have been
selected on which the study focuses on. The funds are:

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 108


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

1. DSPML
Balanced
2. LIC Balance
(G)
3. Reliance
Balanced -G
4. Kotak
Balance - G
5. PRINCIPAL
Bal- G
6. Canara
Balance - G
7. BOB
Balnced-G
8. Escorts
Balanced - G
9. Birla Balance
-G
10. ING
BALANCE-
G
11. TATA
BALANED-
G
12. Birla SunLife
95 - G
13. SBIMagnum
Bal -G
14. HDFC
Balanced - G
15. Escorts
Oppor - G
16. ICICI
PruBalanced-
G
17. Sundaram
Balance -G
18. JM Balanced
- Growth
19. HDFC
Prudence - G
20. UTI
Balanced - G
21. Franklin
Balanc -G

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 109


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

To evaluate the above funds, following parameters have been chosen to rank the mutual funds:

Fundamental analysis

A.

 1 year return
 AUM of mutual fund
 Beta ratio
 Sharpe ratio
 PE ratio
 Fund manager
 Top 10 stocks in the fund
 Top 3 sectors of investment
B.

 % CHANGE IN NAV IN THE YEAR


 % CHANGE IN NAV DURING MARKET CRASH 2008

The parameters have been arranged in two parts A & B.

Weightage allotted:

Part A – 80%

Part B – 20%

Part A

 1 year return – the buyers for mutual fund are those who, with returns, also want safety of
their funds. Investors of Balanced mutual funds are usually who do not want to invest all
money in equity but also conservatively foresee a balanced return from their investments.
Period of 1 year is a sufficient time period where various variations of the stock market can
be noticed.
 Corpus of fund – this parameter has been selected to compare the funds and provide a
consolidated rankings
 Beta ratio - A measure of the volatility, or systematic risk, of a security or a portfolio .
Also known as "beta coefficient". Beta is calculated using regression analysis, and you can
think of beta as the tendency of a security's returns to respond to swings in the market. A beta

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 110


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

of 1 indicates that the security's price will move with the market. A beta of less than 1 means
that the security will be less volatile than the market. A beta of greater than 1 indicates that
the security's price will be more volatile than the market. For example, if a stock's beta is 1.2,
it's theoretically 20% more volatile..
 P/E Ratio- In general, a high P/E suggests that investors are expecting higher
earnings growth in the future compared to companies with a lower P/E.

 Sharpe’s index = (Rp – Rf) . σp


Rp = Portfolio return over a period
Rf = Risk-free return over a period
σp = Total risk, standard deviation of portfolio return
Higher value of Sharpe’s index indicates better performance of portfolio and vice versa. The
Sharpe’s measure of portfolio performance is also relative measure that ranks the funds in
terms of risk (total risk) and return. The ratio is also termed as reward to variability ratio.

 Fund manager – fund manager is the driver of the mutual fund. He is the person responsible
for the performance of the mutual fund. The fund manager uses his skills and prior
experience to create the portfolio of stocks and other financial instruments. The fund
manager’s experience has been taken for evaluation (experience as fund manager).
 Top 10 stocks in the fund – the weights of top 10 stocks in the portfolio has been considered
for evaluation for the comparative study
 Top 3 sectors of investment – the weights of top 3 sectors in the portfolio has been
considered for evaluation for the comparative study
The above mentioned parameters have been weighed to find the best performing balanced mutual
fund in the following manner:

Parameters
Upto 1 Upto 3 Upto 5 Upto Above
Weights year year years 5
Fund manager 3 10 20 30 50

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 111


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

experience
100-700 700 -1200 Above 1200
<100 Cr Cr cr cr
Corpus 1 10 20 30 50
Upto 90% 65 - 75% 55 - 65% 55 % below
Top 10 stocks in
portfolio 1 10 20 30 50
40% -
Above 50% 50% 30% - 40% 30% below
Top 3 sector in portfolio 1 10 20 30 50
>1 0to.5 .5to.75 .75to1
Risk ratio (beta) 1 0 50 30 10
Upto 0.15 0.15- .25 .25 - .5 >.5
Sharpe Ratio 1 10 20 30 50
Upto 10% 10 - 15% 15 - 20% Above 20%
Yearly return 1 10 20 30 50
Valuation ratio (PE ) >20 15to20 5to15 0-5
1 10 20 30 50
Total 10

Part B

 NAV 52 week low and 52 week high – this parameter has been taken into consideration to
find the variation of the funds’ NAV over a period of 52 weeks.
 % fall in NAV during the market crash. As I have to check which fund performs on the
BEAR market.

PARAMETERS
0to 30% 30-45% 45to65% >65%
% CHANGE IN NAV IN THE YEAR 10 20 30 50

% CHANGE IN NAV DURING (-15to (-10to-


MARKET CRASH >-20% -20)% 15)% <-10%

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 112


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

10 20 30 50

ANALYSIS
As in SBIMF my work was to deal with 45 BROKERS, IFA, BANKERS therefore I had made
my questioner according to that & filled it by them.

1. 1.Which field you suggest to invest your money in?


 Equity
 Mutual funds
 Fixed deposits
 Money market instrument
 Insurance
Analysis:- The investor mostly invest near about 40% in equity, 30% in mutualfund, 15% in
insurance & rest are in others .

Investment

15%

40%
15%
Equity
Mutualfund
Insurance
Others
30%

2.what are the general parameters an investor check before making an investment?

 Fund manager
 Reputation of the AMC
 Service provide by the AMC

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 113


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

 Portfolio diversification
From the research it clear that 50% of the investors check the fund manager details, 40%
investors check the portfolio diversification, 7% investors check the services provided by the
AMC, 3% investors check Reputation of the AMC.

CHECKINGDETAILS

3%
7%

50% FUND MANAGER DETAILS


PORTFOLIO DIVESIFICATION
40%
SERVICES PROVIDED BY AMC
REPUTATION OF AMC

3.what are the other technical factors an investors check before investment?

 Standard deviation
 Mean

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 114


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

 Beta ratio
 Fama ratio
From the analysis it is clear that 40% of investors check the Beta ratio, 25% investors check
Standard Deviation, 20% investors check Fama ratio & 15% investors check the Mean.

TECHNICALFACTORS

20%
40%
BETA
15%
SD
MEAN
FAMA
25%

4.What are the other parameters you will suggest to check before investment?

 Sharpe ratio

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 115


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

 Portfolio PE
 Correlation
 Treynor
Analysis shows that 40% of clients prefers to check Sharpe ratio, 40% PE of portfolio, 13%
Treynor & 7% clients prefers to check correlation.

TECHNICALPARAMETERS

7%
13%
40%
PORTFOLIO PE
SHARPE RATIO
TREYNOR
40% CORRELATION

5.Which type of returns an investor check before investment?

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 116


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

 YTD
 1Month
 1 Year
 3Year
Analysis shows that 45% of the investors check 1 YR return,20% YTD, 25%1MONTH return
& 10% of the investors check the 3 YR return.

RETURN CHECK
20%

45% 1YR
3YR
1MONTH
YTD
25%

10%

6. which type of NAV factors an investors check before investment?

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 117


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

 1 Month % change in NAV


 1 Year % change in NAN
 NAV change in Bull market
 NAV change in Bear market
Analysis shows that 41% investors check the NAV change in Bear market, 43% investors check
1 YR% change in NAV, 11% 1 Month change in NAV& 5% investors check the NAV change in
Bull market.

NAVCHANGE

5%

43%
1YR CHANGE
41%
1MONTH CHANGE
CHANGE IN BEAR MARKET

11% CHANGE IN BULL MARKET

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 118


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

7.Give your suggestions what the other factors investors have to check .

After taking the fee back from the clients it is clear that near about 46% are saying I have to
check the AUM of the fund, 30% says I have to check the Sortino ratio, 18% says to check
the R-square& 16% suggested to check the other factors.

SUGGESTEDFACTORS

16%

46%
AUM
30% R-SQUARE
SORTINO
OTHERS
18%

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 119


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

After analyzing the primer data it is clear that different investors have different perception to
check the performance of the mutual funds.
After all it is clear from analysis that the following parameters are the most important parameters
for checking the performance of the mutual funds.
1. FUND MANAGER
2. BETA RATIO
3. SHARPE RATIO
4. PORTFOLIO DIVESIFICATION
5. 1 YR RETURN O FTHE FUND
6. % OF NAV CHANGE IN BEAR MARKET
7. % CHANGE OF NAV IN 1YR
8. PORTFOLIO PE RATIO
9. AUM OF THE FUND

Therefore I have taken above parameters for my fund performance analysis in secondary data
analysis.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 120


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

FINDINGS FROM THE SECONDARY DATA ANALYSIS

DSPMLBalance (G)

points awarded (Xi) Wi wi xi

Fund manager experience 20 3 60

Corpus 20 1 20

Top 10 stocks in portfolio 50 1 50

Top 3 sector in portfolio 50 1 50

Risk ratio (beta) 50 1 50

Sharpe Ratio 30 1 30

Yearly return 50 1 50

Valuation ratio (PE ) 10 1 10


SUM 320

DSPMLBalance (G) 32

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 121


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

LIC Balance (G)

points awarded (Xi) Wi wi xi

Fund manager experience 20 3 60

Corpus 10 1 10

Top 10 stocks in portfolio 50 1 50

Top 3 sector in portfolio 30 1 30

Risk ratio (beta) 0 1 0

Sharpe Ratio 30 1 30

Yearly return 50 1 50

Valuation ratio (PE ) 10 1 10


SUM 240

LIC Balance (G) 24

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 122


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Reliance Balanced -G

points awarded (Xi) Wi wi xi

Fund manager experience 30 3 90

Corpus 10 1 10

Top 10 stocks in portfolio 30 1 30

Top 3 sector in portfolio 30 1 30

Risk ratio (beta) 10 1 10

Sharpe Ratio 30 1 30

Yearly return 50 1 50

Valuation ratio (PE ) 10 1 10


SUM 260

Reliance Balanced -G 26

Kotak Balance - G

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 123


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

points awarded (Xi) Wi wi xi


Fund manager
experience 20 3 60

Corpus 10 1 10
Top 10 stocks in
portfolio 50 1 50

Top 3 sector in portfolio 30 1 30

Risk ratio (beta) 10 1 10

Sharpe Ratio 30 1 30

Yearly return 50 1 50

Valuation ratio (PE ) 10 1 10


SUM 250

Kotak Balance - G 25

PRINCIPAL Bal- G

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 124


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

points awarded (Xi) Wi wi xi

Fund manager experience 20 3 60

Corpus 20 1 20

Top 10 stocks in portfolio 50 1 50

Top 3 sector in portfolio 50 1 50

Risk ratio (beta) 10 1 10

Sharpe Ratio 30 1 30

Yearly return 50 1 50

Valuation ratio (PE ) 10 1 10


SUM 280

PRINCIPAL Bal- G 28

Canara Balance - G

points awarded (Xi) Wi wi xi

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 125


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Fund manager experience 20 3 60

Corpus 20 1 20

Top 10 stocks in portfolio 50 1 50

Top 3 sector in portfolio 30 1 30

Risk ratio (beta) 0 1 0

Sharpe Ratio 30 1 30

Yearly return 50 1 50

Valuation ratio (PE ) 10 1 10


SUM 250

Canara Balance - G 25

BOB Balnced-G

points awarded (Xi) Wi wi xi

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 126


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Fund manager experience 20 3 60

Corpus 10 1 10

Top 10 stocks in portfolio 50 1 50

Top 3 sector in portfolio 50 1 50

Risk ratio (beta) 0 1 0

Sharpe Ratio 30 1 30

Yearly return 30 1 30

Valuation ratio (PE ) 10 1 10


SUM 240

BOB Balnced-G 24

Escorts Balanced - G

points awarded (Xi) Wi wi xi

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 127


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Fund manager experience 50 3 150

Corpus 10 1 10

Top 10 stocks in portfolio 30 1 30

Top 3 sector in portfolio 50 1 50

Risk ratio (beta) 0 1 0

Sharpe Ratio 30 1 30

Yearly return 50 1 50

Valuation ratio (PE ) 10 1 10


SUM 330

Escorts Balanced - G 33

Birla Balance - G

points awarded (Xi) Wi wi xi

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 128


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Fund manager experience 50 3 150

Corpus 20 1 20

Top 10 stocks in portfolio 50 1 50

Top 3 sector in portfolio 50 1 50

Risk ratio (beta) 30 1 30

Sharpe Ratio 30 1 30

Yearly return 50 1 50

Valuation ratio (PE ) 10 1 10


SUM 390

Birla Balance - G 39

ING BALANCE-G

points awarded (Xi) Wi wi xi

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 129


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Fund manager experience 20 3 60

Corpus 10 1 10

Top 10 stocks in portfolio 50 1 50

Top 3 sector in portfolio 30 1 30

Risk ratio (beta) 10 1 10

Sharpe Ratio 30 1 30

Yearly return 50 1 50

Valuation ratio (PE ) 10 1 10


SUM 250

ING BALANCE-G 25

TATA BALANED-G

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 130


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

points awarded (Xi) Wi wi xi

Fund manager experience 20 3 60

Corpus 20 1 20

Top 10 stocks in portfolio 50 1 50

Top 3 sector in portfolio 30 1 30

Risk ratio (beta) 0 1 0

Sharpe Ratio 30 1 30

Yearly return 50 1 50

Valuation ratio (PE ) 10 1 10


SUM 250

TATA BALANED-G 25

Birla SunLife 95 - G

points awarded (Xi) Wi wi xi

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 131


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Fund manager experience 50 3 150

Corpus 20 1 20

Top 10 stocks in portfolio 50 1 50

Top 3 sector in portfolio 50 1 50

Risk ratio (beta) 30 1 30

Sharpe Ratio 30 1 30

Yearly return 50 1 50

Valuation ratio (PE ) 10 1 10


SUM 390

Birla SunLife 95 - G 39

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 132


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

SBIMagnum Bal -G

points awarded (Xi) Wi wi xi

Fund manager experience 50 3 150

Corpus 20 1 20

Top 10 stocks in portfolio 50 1 50

Top 3 sector in portfolio 30 1 30

Risk ratio (beta) 0 1 0

Sharpe Ratio 30 1 30

Yearly return 50 1 50

Valuation ratio (PE ) 10 1 10


SUM 340

SBIMagnum Bal -G 34

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 133


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

HDFC Balanced - G

points awarded (Xi) Wi wi xi

Fund manager experience 50 3 150

Corpus 20 1 20

Top 10 stocks in portfolio 50 1 50

Top 3 sector in portfolio 50 1 50

Risk ratio (beta) 10 1 10

Sharpe Ratio 30 1 30

Yearly return 30 1 30

Valuation ratio (PE ) 10 1 10


SUM 350

HDFC Balanced - G 35

Escorts Oppor - G

points awarded (Xi) Wi wi xi

Fund manager experience 50 3 150

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 134


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Corpus 20 1 20

Top 10 stocks in portfolio 50 1 50

Top 3 sector in portfolio 50 1 50

Risk ratio (beta) 10 1 10

Sharpe Ratio 30 1 30

Yearly return 20 1 20

Valuation ratio (PE ) 10 1 10


SUM 340

Escorts Oppor - G 34

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 135


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

ICICI PruBalanced-
G

points awarded (Xi) Wi wi xi


Fund manager
experience 50 3 150

Corpus 20 1 20
Top 10 stocks in
portfolio 50 1 50

Top 3 sector in portfolio 50 1 50

Risk ratio (beta) 0 1 0

Sharpe Ratio 30 1 30

Yearly return 20 1 20

Valuation ratio (PE ) 10 1 10


SUM 330

ICICI PruBalanced-
G 33

Sundaram Balance -G

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 136


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

points awarded (Xi) Wi wi xi

Fund manager experience 20 3 60

Corpus 20 1 20

Top 10 stocks in portfolio 50 1 50

Top 3 sector in portfolio 20 1 20

Risk ratio (beta) 0 1 0

Sharpe Ratio 30 1 30

Yearly return 30 1 30

Valuation ratio (PE ) 10 1 10


SUM 220

Sundaram Balance -G 22

JM Balanced - Growth

points awarded (Xi) Wi wi xi

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 137


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Fund manager experience 30 3 90

Corpus 20 1 20

Top 10 stocks in portfolio 50 1 50

Top 3 sector in portfolio 20 1 20

Risk ratio (beta) 10 1 10

Sharpe Ratio 30 1 30

Yearly return 20 1 20

Valuation ratio (PE ) 20 1 20


SUM 260

JM Balanced - Growth 26

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 138


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

HDFC Prudence - G

points awarded (Xi) Wi wi xi

Fund manager experience 50 3 150

Corpus 50 1 50

Top 10 stocks in portfolio 50 1 50

Top 3 sector in portfolio 30 1 30

Risk ratio (beta) 10 1 10

Sharpe Ratio 30 1 30

Yearly return 30 1 30

Valuation ratio (PE ) 10 1 10


SUM 360

HDFC Prudence - G 36

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 139


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

UTI Balanced - G

points awarded (Xi) Wi wi xi


Fund manager
experience 20 3 60

Corpus 30 1 30
Top 10 stocks in
portfolio 50 1 50

Top 3 sector in portfolio 30 1 30

Risk ratio (beta) 10 1 10

Sharpe Ratio 30 1 30

Yearly return 30 1 30

Valuation ratio (PE ) 10 1 10


SUM 250

UTI Balanced - G 25

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 140


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Franklin Balanc -G

points awarded (Xi) Wi wi xi

Fund manager experience 20 3 60

Corpus 20 1 20

Top 10 stocks in portfolio 50 1 50

Top 3 sector in portfolio 30 1 30

Risk ratio (beta) 10 1 10

Sharpe Ratio 30 1 30

Yearly return 30 1 30

Valuation ratio (PE ) 10 1 10


SUM 240

Franklin Balanc -G 24

PART –B ANALYSIS

POINTS FOR 1YEAR DIFF POINTS FOR NAV FALL IN TOTAL


Fund Name % IN NAV MARKET CRASH POINT
DSPML Balanced 30 50 80
LIC Balance (G) 50 30 80

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 141


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Reliance Balanced
-G 30 30 60
Kotak Balance - G 30 20 50
PRINCIPAL Bal-
G 30 20 50
Canara Balance -
G 30 20 50
BOB Balnced-G 30 30 60
Escorts Balanced -
G 30 20 50
Birla Balance - G 20 20 40
ING BALANCE-G 30 20 50
TATA BALANED-
G 30 30 60
Birla SunLife 95 -
G 30 50 80
SBIMagnum Bal
-G 30 30 60
HDFC Balanced -
G 20 20 40
Escorts Oppor - G 30 30 60
ICICI
PruBalanced-G 20 20 40
Sundaram Balance
-G 20 20 40
JM Balanced -
Growth 30 30 60
HDFC Prudence -
G 20 30 50
UTI Balanced - G 20 20 40
Franklin Balanc
-G 20 20 40

FINAL SCORE

FA +
Final score Part A Weight Final A Part B Weight Final B FB
DSPML Balanced 32 0.8 25.6 80 0.2 16 41.6
LIC Balance (G) 24 0.8 19.2 80 0.2 16 35.2

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 142


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

Reliance Balanced
-G 26 0.8 20.8 60 0.2 12 32.8
Kotak Balance - G 25 0.8 20 50 0.2 10 30
PRINCIPAL Bal- G 28 0.8 22.4 50 0.2 10 32.4
Canara Balance - G 25 0.8 20 50 0.2 10 30
BOB Balnced-G 24 0.8 19.2 60 0.2 12 31.2
Escorts Balanced -
G 33 0.8 26.4 50 0.2 10 36.4
Birla Balance - G 39 0.8 31.2 40 0.2 8 39.2
ING BALANCE-G 25 0.8 20 50 0.2 10 30
TATA BALANED-
G 25 0.8 20 60 0.2 12 32
Birla SunLife 95 - G 39 0.8 31.2 80 0.2 16 47.2
SBIMagnum Bal -G 34 0.8 27.2 60 0.2 12 39.2
HDFC Balanced -
G 35 0.8 28 40 0.2 8 36
Escorts Oppor - G 34 0.8 27.2 60 0.2 12 39.2
ICICI PruBalanced-
G 33 0.8 26.4 40 0.2 8 34.4
Sundaram Balance
-G 22 0.8 17.6 40 0.2 8 25.6
JM Balanced -
Growth 26 0.8 20.8 60 0.2 12 32.8
HDFC Prudence -
G 36 0.8 28.8 50 0.2 10 38.8
UTI Balanced - G 25 0.8 20 40 0.2 8 28
Franklin Balanc -G 24 0.8 19.2 40 0.2 8 27.2

Conclusion

As per the analysis prepared above, the BIRLA SUNLIFE 95 fund has proved to be the best
balanced fund out of our selected funds. The fund has outperformed funds of various AMCs.
Also the other performing funds are DSPML BALANCED,BIRLA BALANCED, MAGNUM
BALANCE&ESCORT OPPOR FUND. The ranking of the funds is as follows:

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 143


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

FUND RANKS
Fund Total Score Rank
Birla SunLife 95 - G 47.2 1
DSPML Balanced 41.6 2
Birla Balance - G,SBIMagnum Bal -G,Escorts Oppor - G 39.2 3
HDFC Prudence - G 38.8 4
Escorts Balanced - G 36.4 5
HDFC Balanced - G 36 6
LIC Balance (G) 35.2 7
ICICI PruBalanced-G 34.4 8
Reliance Balanced -G,JM Balanced - Growth 32.8 9
Principal Balanced (G) 32.4 10
Tata Balanced 32 11
BoB Balance-G 31.2 12
Kotak Balance,ING BALANCE-G,Canara Balance - G 30 13
UTI Balanced - G 28 14
Franklin Balanc -G 27.2 15
Sundaram Balance -G 25.6 16

Recommendations

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 144


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

The fund is recommended for those investors who do not have a high-risk taking ability. The
analysis has been of the above funds has been done till April 2010. Therefore, the investment in
the BIRLA SUNLIFE 95-G,HDFC Prudence fund , DSPML Balance, Magnum Balance, Escort
opportunity & BIRLA Balance are recommended at this point of time as the fund hav
outperformed among all other balanced funds.

Recommendations to SBIMF:

As comparing with BIRLA SUNLIFE 95-G fund sbi magnum is facing the problem in the risk
factor(beta) & the portfolio diversification.

1 .Fund managers have to take steps to minimize the risk factor (beta) compared to the sensex
beta.

2 . Fund managers have to change their portfolio allocation in sector allocation as they have
not diversified the portfolio properly.

3. Also SBIMF have to give the proper service to the investors so that AUM will increase.

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 145


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

BIBILOGRAPHY

Websites:
 www.amfi.com
 www.valueresearchonline.com
 www.moneycontrol.com
 www.mutualfundsindia.com
 www.Sbimf.com
 www.crisil.com
 www.moneyterms.co.uk

Books

 “Khan MY (1997) – Financial Services - Tata Mc Graw Hills”.

 “Malhotra Naresh (2002) Marketing Research - Prentice Hall of India”.

 “Michael Violano (2001) Retail Banking Resources & technologies ”.

 “Bhole LM, Financial Institutions and Markets - Tata Mc Graw Hills”.

Magazines:-

 Business Week

 Outlook Money

 Business India

 Business World
 Dalal Street
QUESTIONARY FOR THE PRIMARY DATA ANALYSIS
WHAT ARE THE PARAMETERS TO CHECK THE PERFORMANCE OF THE
MUTUALFUNDS

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 146


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

(Please bold the most applicable option)

CONTACT INFORMATION:

Name: __________________________________________________

Address: ________________________________________________

City: ___________________________________________________

Phone :( O) ______________________ (R) ____________________

OTHER INFORMATION:

Age:

Marital status:

 Single
 Married

Occupation: (tick one)

 Businessman
 Executive
 Government Service
 Academics
 Employee in a firm
 Self-employed
 Others ________________________ (Please Specify)
1.Which field you suggest to invest your money in?
 Equity
 Mutual funds
 Insurance
 Others

2.what are the general parameters an investor check before making an investment?

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 147


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

 Fund manager
 Reputation of the AMC
 Service provide by the AMC
 Portfolio diversification

3.what are the other technical factors an investors check before investment?

 Standard deviation
 Mean
 Beta ratio
 Fama ratio

4.What are the other parameters you will suggest to check before investment?

 Sharpe ratio
 Portfolio PE
 Correlation
 Treynor

5.Which type of returns an investor check before investment?

 YTD
 1Month
 1 Year
 3Year

6. which type of NAV factors an investors check before investment?

 1 Month % change in NAV


 1 Year % change in NAN
 NAV change in Bull market
 NAV change in Bear market

7.Give your suggestions what the other factors investors have to check .

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 148


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 149


A COMPARATIVE ANALYSIS OF BALANCED MUTUAL FUNDS IN INDIA

MEWAR GIRLS BUSINESS SCHOOL, GAZIABAD PAGE 150