WELCOME

TO
PROJECT SEMINOR
 TITLE OF THE PROJECT

A STUDY ON PERFORMANCE
EVALUATION OF MUTUALFUNDS
KARVY COMPANY PVT LTD
• HYDERABAD
 INDUSTRY PROFILE
COMPANY: KARVY COMPANY PVT
LTD

EST: 1963

ANUAL PRODUCTION: 6700 CRORES

AUTHORISED BANKS: RBI,IDBI,

INDIAN BANK.
 COMPANY PROFILE
company name: KARVY COMPANY PVT LTD
Chairman:K.venkatarami Reddy
M.D: G. Madhu
EST: 1982
Annual income: 1,50,000
Branches :Hyd,Bombay,Chennai
Products: like demate a/c, debentures,insurance

b
 REASUCH METHODOLOGY
There are mainly two important sources
through which the whole data is gathered
1.primary data
2.Secondary data

Primary data:-
the primary data has been collected by interacting customer and
also staff of karvy computer share pvt ltd and also discussed with
each and every custmer collecting more data from us.
Secondary data:-
the secondary is collected from books relevant magazines and
also form the web site of www.karvycompanyshare.com.gathered
more information from SEBI (SECURITIES EXCHANGE BOARD OF
INDIA),RETURNS Etc were collected from various web sites)
 SCOPE OF THE STUDY
• The scope of the study includes the
present forformence of the mutual funds.
There trends and future scenario the enter
schemes are not take into consideration
only limited are taken from each type of
the funds of study.
 OBJECTS OF THE STUDY
 To under the various schemes of mutual
funds in India
 To study the performance of mutual funds in
india
 Measuring the performance equity -
diversification field schemes of different asset
management companies in “GROWTH PLAN
“only.
 LIMITATIONS
• Mutual funds are restricted to Equity- diversified
schemes only.
• Mutual funds are restricted to Growth plan only.
• Performance evaluation is done to four mutual
funds by taking first day of the month Net Asset
Values for two years only.
• As the study is based on three & five years data
only entire findings cannot be generalized.
 TYPES OF MUTUAL FUNDS
Mutual funds classified into five funds
1.eqity oriented fund
2.debt based fund
3.hybed fund
4.open ended fund
5.intervel fund
 Mutual funds at karvy
The Mutual Fund umbrella of Karvy consists both Open-
ended and Close-ended Mutual Funds. The following are
the various mutual fund AMCs for which Karvy acts as a
Registrar.
• BOB Mutual Fund
• BOI Mutual Fund
• DEUTSCHE Mutual Fund
• GIC Mutual Fund
• IDBI Mutual Fund
• IL & FS Mutual Fund
• MORGAN STANLEY Growth Fund
• PNB Mutual Fund
• RELIANCE Capital Mutual Fund
 MUTUAL FUNDS STATEMENTS
YEAR S&P CNX ROR(X) NAV ROR(y) X*X Y*Y X*Y X-Avg(x) Y-(Avg(y) R^2 T^2

NIFTY

2007 0.59802 0.59802 501.96 1.0245 8.2413 -8.2413 4.984 0.4027 -2.6852 18.253 3.0

2008 20.9751 0.12999 964.72 -7.6486 5.1172 11.210 0.117 -0.2166 -0.249 16.217 6.0
7

2009 26983.1 0.32162 1690.35 0.5538 6.1082 10.172 8.056 -0.025 -0.0852 29.257 35
2

2010 2 5807.6 0.04781 392.59 0.0545 0.0023 0.003 0.003 0.0189 0.0012 4.04 2
MONTH
S
Calculations:
Beta = (n* sum (x*y)-sum (x) sum (y))/n* sum (x^2)-sum (x)^2
= 0.838425
Alpha = Avg (y) – (beta*Avg (x))
= .0291
Coeff. Of Corr =
(n*sum (x*y)-sum (x)*sum(y))/((n*sum(y^2)-sum(y)^2)*(n*sum(x^2)-sum(x)^2))^(1/2)

=0 .847158
Coeff. of determination
=(0 .847158)^2 = 0.717678
Covariance = Beta * market variance
=0.004021
Var. x = 0.004796 Std.deviation x = 0.071149
Var. y = 0.004465 Std.deviation y = 0.07007
Treynor’s measure = (Avg ROR – RFR) / Beta
RFR=3%
Treynor’s measure T (m)
= -0.00134
T (I) = 0.007759
Sharpe’s measure =(Avg ROR-RFR) / S.D
S (m) = -0.016
S (I) = 0.332452
 MUTUAL FUNDS GROWTH:
• Type of the scheme:
• An open ended equity growth scheme
• Investment Objective:
• The primary investment objective of the scheme is to achieve long
term growth of long term growth of capital by investment in equity
and equity related securities through a research based investment
approach
• Asset Allocation Pattern of the scheme
• Type of InstrumentsAllocation (% of net assets)Equity & Equity
related instruments65 – 100% Debt & money market InstrumentsUp
to 35%
• Benchmark Index : BSE 100
• Name of the fund manager : Mr. Sunil singhania
• Performance of the scheme: data as on 30march, 2007
• Compounded Annual ReturnsPeriodSchemesBenchmark returns
%Last 1 Year 14.1111.70Last 2 Year51.8130.91Last 5 Year
60.7230.81Returns Since inception32.7912.88
 mutual growth fund vs BSE100

70
60
PERCENTAGE

period
50
40 Reliance returns
30
benchmark
20
returns%
10
0
1 2 3 4 5
PERIOD
 findings
• Since average rate of return of fund is greater than that of
market returns, the fund returns are beating the market
returns. So, the returns are better than the market returns.
• Since standard deviation of fund is very nearer to that of
market’s the risk is similar to that of market.
• Since Beta (0.838425) is less than that of markets beta
(1.00), the fund reacts less than the market reaction. Also
beta indicates that the funds returns would increase or
decease by 0.84% for every 1 % increase or decrease in
the market returns. This also means that the mutual fund
fluctuates 16 % less than the market index.
• Since the Treynor measure for the fund is greater than the
market’s, it indicates the funds superior risk adjusted
performance.
• Since the Sharpe measure of the fund portfolio is
substantially greater than the market portfolio, it indicates
the funds superior risk adjusted performance
• Since mutual Growth fund is having fewer
coefficients of determination and beta (0.58736&
0.74458), it has low diversification and low risk
among all the four funds. Also, on comparing the
two-year total annualized returns and betas of all
the four funds Lic is giving a high return with low
risk of 0.74458than other funds. So, lower the
beta and higher the funds performance is the
better mutual fund for investment. One might
expect the beat performance by funds with low
diversification because they apparently are
attempting to beat the market by being unique in
their selection or timing. This seems to be true
for Lic mutual fund. So one can suggest
investing in Lic mutual fund.
 CONCLUSION:
• Mutual funds assume greater importance in
a scenario of increasing inflation. With
inflation hovering around 5 % to 6 %, poised
for greater heights, investing in avenues,
which just offer breakeven returns, exposes
the investment portfolio to inflation risk.
Investment in equity either directly or
through the mutual fund route provides an
effective hedge mechanism against such a
potent threat. So, investing in mutual funds
is a better option for investors depending
upon their objective and requirements