Description
Mutual Funds is one of the best method for investment for obtaining maximum return through diversification of the risk into various securities. Return Risk Ratio and Single Index Model helps to the investor to evaluate the performance of the different Mutual Funds Schemes, which classifies the Higher, Normal and Low return-giving portfolio. From which investor can select the best and optimum portfolio so that investors can obtain maximum return with bearable risk
A STUDY ON PERFORMANCE OF THE EQUITY BALANCED FUND IN INDIA
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CONTENTS
• EXECUTIVE 7 SUMMARY
• CHAPTER 8 ? Mutual 9 ? Investment 10 ? Investment 13 ? Types 19 ? Advantages 22 ? Disadvantages of MF of MF of MF Alternatives in India Avenues in India Funds –Concepts 1 INTRODUCTION
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24 • CHAPTER 2 – DESIGN OF THE STUDY 26 ? OBJECTIVES 27 ? SCOPE OF THE STUDY 27 ? Period of the Study 27 ? Methodology 27 • CHAPTER 3 – THE STUDY 30 • CHAPTER 4 – ANALYSIS AND OBSERVATIONS 73 • CONCLUSION 83 • BIBLIOGRAPHY
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EXECUTIVE SUMMARY
Each investment alternative has its own strengths and weaknesses. Some options seek to achieve superior returns (like equity), but with corresponding higher risk. Other provide safety and liquidity (like PPF, FD, etc.) but at the cost of return. Mutual funds seek to combine the advantages of investing in arch of these alternatives while dispensing with the shortcomings. Indian stock market is semi-efficient by nature and, is considered as one of the most respected stock markets, where information is quickly and widely disseminated, thereby allowing each security’s price to adjust rapidly in an unbiased manner to new information so that, it reflects the nearest investment value. And mainly after the introduction of electronic trading system, the information flow has become much faster. But sometimes, in developing countries like India, sentiments play major role in price movements, or say, fluctuations, where investors find it difficult to predict the future with certainty. Some of the events affect economy as a whole, while some events are sector specific. Even in one particular sector, some companies or major market player are more sensitive to the event. So, the new investors taking exposure in the market should be well aware about the maximum potential loss, i.e. Value at risk. It would be good to diversify one’s portfolio to include equity mutual funds and stocks. The benefit of diversification are that while risk exposure from a particular asset may not be very high, it would also give the opportunity of participating in the party in the equity markets- which may have just begun- in a relatively safe manner(than investing directly into stock markets). Mutual funds are one of the best options for investors to choose from. It must be realized that the performance of different funds varies time to time. Evaluation of a fund performance is meaningful when a fund has access to an array of investment products in market. An investor can choose from a variety of funds to suit his risk tolerance, investment horizon and objective. Direct investment in equity offers capital growth but at high risk and without the benefit of diversification by professional management offered by mutual funds.
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CHAPTER: 1 - INTRODUCTION
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India presents a vast potential for investment and is actively encouraging the players especially entrance of foreign players into the market. India is also one of the few markets in the world which offers high prospects for growth and earning potential in all areas of business. In the current market scenario where there is more expenditure than one’s salary, inflation touching its high and fixed deposits going down day by day, thus net rate of return on the investments being below the inflation rate. To meet these growing requirements, the investors need to invest his disposable income to reap short as well as long term benefits. Those who do make diverse investments are able to squeeze maximum benefits. The rationale behind undertaking this project is to understand the awareness and acceptance of various investment alternatives and to make a comparative study as which mode of equity investments are preferred by individuals. That is direct equity or the mutual funds. Mutual Funds – Concept: A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciations unrealized are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. The flow chart below describes broadly the working of a mutual fund.
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Mutual Fund Operation Flow Chart
INVESTMENT AVENUES IN INDIA:
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. Banks are considered as the safest of all options, banks have been the roots of the financial systems in India. Promoted as the means to social development, banks in India have indeed played an important role in the rural enlistment. For an ordinary person though, they have acted as the safest investment avenue wherein a person deposits money and earns interest on it. The two main modes of investment in banks, savings accounts and fixed deposits have been effectively used by one and all. However, today the interest rate structure in the country is headed southwards, keeping in line with global trends. With the banks offering little above 9 percent in their fixed deposits for one year, the yields have come down substantially in recent times. Add to this, the inflationary pressures in economy and one has a position where the savings are not earning. The inflation is creeping up, to almost 8 percent at times, and this means that the value of money saved goes down instead of going up. This effectively mars any chance of gaining from the investments in banks. Just like banks, post offices in India have a wide network. Spread across the nation, they offer financial assistance as well as serving the basic requirements of communication. Among all saving options, Post office schemes have been offering the highest rates. Added to it is the fact that the investments are safe with the department being a
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Government of India entity. So, the two basic and most sought after features, such as return safety and quantum of returns was being handsomely taken care of. Though certainly not the most efficient systems in terms of service standards and liquidity, these have still managed to attract the attention of small, retail investors. However, with the government announcing its intention of reducing the interest rates in small savings options, this avenue is expected to lose some of the investors. Public Provident Funds act as options to save for the post retirement period for most people and have been considered good option largely due to the fact that returns were higher than most other options and also helped people gain from tax benefits under various sections. This option too is likely to lose some of its sheen on account of reduction in the rates offered. Another often-used route to invest has been the fixed deposit schemes floated by companies. Companies have used fixed deposit schemes as a means of mobilizing funds for their operations and have paid interest on them. The safer a company is rated, the lesser the return offered has been the thumb rule. However, there are several potential roadblocks in these. First of all, the danger of financial position of the company not being understood by the investor lurks. The investors rely on intermediaries who more often than not, don’t reveal the entire truth. Secondly, liquidity is a major problem with the amount being received months after the due dates. Premature redemption is generally not entertained without cuts in the returns offered and though they present a reasonable option to counter interest rate risk (especially when the economy is headed for a low interest regime), the safety of principal amount has been found lacking. Many cases like the Kuber Group and DCM Group fiascoes have resulted in low confidence in this option. The options discussed above are essentially for the risk-averse, people who think of safety and then quantum of return, in that order. For the brave, it is dabbling in the stock market. Stock markets provide an option to invest in a high risk, high return game. While the potential return is much more than 10-11 percent any of the options discussed above can generally generate, the risk is undoubtedly of the highest order. But then, the general principle of encountering greater risks and uncertainty when one seeks higher returns holds true. However, as enticing as it might appear, people generally are clueless as to how the stock market functions and in the process can endanger the hard-earned money.
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For those who are not adept at understanding the stock market, the task of generating superior returns at similar levels of risk is arduous to say the least. This is where Mutual Funds come into picture. Mutual Funds are essentially investment vehicles where people with similar investment objective come together to pool their money and then invest accordingly. Each unit of any scheme represents the proportion of pool owned by the unit holder (investor). Appreciation or reduction in value of investments is reflected in net asset value (NAV) of the concerned scheme, which is declared by the fund from time to time. Mutual fund schemes are managed by respective Asset Management Companies (AMC). Different business groups/ financial institutions/ banks have sponsored these AMCs, either alone or in collaboration with reputed international firms. Several international funds like Alliance and Templeton are also operating independently in India. Many more international Mutual Fund giants are expected to come into Indian markets in the near future.
GROWTH IN ASSETS UNDER MANAGEMENT
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INVESTMENT ALTERNATIVES IN INDIA:• Non marketable financial assets: These are such financial assets which gives moderately high return but can not be traded in market. Bank Deposits Post Office Schemes Company FDs PPF
? ? ? ? •
Equity shares: These are shares of company and can be traded in secondary market. Investors get benefit by change in price of share and dividend given by companies. Equity shares represent ownership capital. As an equity shareholder, a person has an ownership stake in the company. This essentially means that the person has a residual interest in income and wealth of the company. These can be classified into following broad categories as per stock market: Blue chip shares Growth shares Income shares Cyclic shares Speculative shares
? ? ? ? ? •
Bonds: Bonds are the instruments that are considered as a relatively safer investment avenues. ? ? ? ? ? ? G sec bonds GOI relief funds Govt. agency funds PSU Bonds RBI BOND Debenture of private sector co.
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•
Money market instrument: By convention, the term "money market" refers to the market for short-term requirement and deployment of funds. Money market instruments are those instruments, which have a maturity period of less than one year. ? ? ? T-Bills Certificate of Deposit Commercial Paper
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Mutual Funds- A mutual fund is a trust that pools together the savings of a number of investors who share a common financial goal. The fund manager invests this pool of money in securities, ranging the scheme. The different types of schemes are ? ? ? ? Balanced Funds Index Funds Sector Fund Equity Oriented Funds
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Life insurance: Now-a-days life insurance is also being considered as an investment avenue. Insurance premiums represent the sacrifice and the assured sum the benefit. Under it different schemes are: ? ? ? ? Endowment assurance policy Money back policy Whole life policy Term assurance policy
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Real estate: One of the most important assets in portfolio of investors is a residential house. In addition to a residential house, the more affluent investors are likely to be interested in the following types of real estate: ? ? ? Agricultural land Semi urban land Farm House
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•
Precious objects: Investors can also invest in the objects which have value. These comprises of: ? ? ? ? Gold Silver Precious stones Art objects
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Financial Derivatives: These are such instruments which derive their value from some other underlying assets. It may be viewed as a side bet on the asset. The most important financial derivatives from the point of view of investors are: ? ? Options Futures
RISK HIERARCHY OF MUTUAL FUNDS
Money Market Funds Gilt Funds
Debt Funds
Equity Funds Hybrid Funds Aggressive Growth
Flexible Asset allocation Funds
Funds
Growth Funds
Risk
High Yield Debt Funds Diversified Equity Funds
Level
Index Funds
Focused Debt Funds
Value Funds Growth and Income funds Balanced Funds Equity Income Funds
Diversified Money Market Funds Gilt Funds Debt Funds
Type of Fund
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Snapshot of Mutual Fund Schemes
Mutual Fund Type
Objective
Risk
Investment Who should Portfolio invest Those who Treasury Bills, park their Certificate of funds in Deposits, current Commercial accounts or Papers, Call short-term Money bank deposits
Investment horizon
Liquidity + Moderate Money Income + Market Reservation of Capital Shortterm Funds (Floating - shortterm)
Negligible
2 days - 3 weeks
Liquidity + Moderate Income
Call Money, Commercial Papers, Little Treasury Bills, Interest Rate CDs, Shortterm Government securities.
Those with surplus short-term funds
3 weeks 3 months
Bond Funds (Floating - Longterm) Gilt Funds Equity Funds Regular Income
Predominantly Debentures, Credit Risk Salaried & Government & Interest conservative securities, Rate Risk investors Corporate Bonds Interest Rate Government Risk securities Salaried & conservative investors Aggressive investors with long term out look.
More than 9 - 12 months
Security & Income Long-term Capital Appreciation
12 months & more
High Risk
Stocks
3 years plus
Index Funds
To generate returns that Portfolio are NAV varies indices like commensurate with index BSE, NIFTY with returns of performance etc respective indices Growth & Regular Income
Aggressive investors.
3 years plus
Balanced Funds
Balanced ratio Capital of equity and Market Risk debt funds to Moderate & and Interest ensure higher Aggressive Rate Risk returns at lower risk
2 years plus
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EQUITY SHARE / DIRECT INVESTMENT:Equity shares: These are shares of company and can be traded in secondary market. Investors get benefit by change in price of share or dividend given by companies. Equity shares represent ownership capital. As an equity shareholder, a person has an ownership stake in the company. This essentially means that the person has a residual interest in income and wealth of the company. These can be classified into following broad categories as per stock market: Blue chip shares- Shares of large, well established, financially strong companies with an impressive record of earnings and dividends. ? Growth shares-Shares of companies that have fairly entrenched positions in a growing market and which enjoy an above average rate of growth as well as profitability. ? Income shares-Share of companies that have fairly stable operations, relative limited growth opportunities, and high dividend payout ratios. ? Cyclic shares – Share of companies that have a pronounced cyclicality in their operations. ? Defensive shares- Shares of companies that are relatively unaffected by the ups and downs in general business conditions. ? Speculative shares- Shares of companies that tend to fluctuate widely because there is a lot of speculative trading in them.
?
MUTUAL FUNDS - AN INTRODUCTION:A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is invested by the fund manager in different types of securities depending upon the objective of the scheme. These could range from shares to debentures to money market instruments. The income earned through these investments and the capital appreciations realized by the schemes are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it
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offers an opportunity to invest in a diversified, professionally managed portfolio at a relatively low cost. The small savings of all the investors are put together to increase the buying power and hire a professional manager to invest and monitor the money. Anybody with an investible surplus of as little as a few thousand rupees can invest in Mutual Funds. Each Mutual Fund scheme has a defined investment objective and strategy. INCEPTION OF MUTUAL FUNDS IN INDIA:The history of mutual funds in India can be divided into 5 important phases: 1963-1987 The Unit Trust of India was the sole player in the industry. Created by an Act of Parliament in 1963, UTI launched its first product, the Unit Scheme 1964, which is even today the single largest mutual fund scheme. UTI created a number of products such as monthly income plans, children plans, equity-oriented schemes and off shore funds during this period. UTI managed assets of Rs.6,700 crores at the end of this phase. 1987-1993 In 1987 public sector banks and financial institutions entered the mutual fund industry. SBI mutual fund was the first non- UTI fund to be set up in 1987. Significant shift of investors from deposits to mutual fund industry happened during this period. Most funds were growth-oriented closed-ended funds. By the end of this period, assets under UTI’s management grew to Rs.38,247 crores and public sector funds managed Rs.8,750 crores. 1993-1996 In 1993, the mutual fund industry was open to private sector players, both Indian and foreign. SEBI’s first set of regulations for the industry were formulated in 1993, and substantially revised in 1996.Signifficant innovations in servicing, product design and information disclosure happened in this phase, mostly initiated by private players. 1996-1999 The implementation of the new SEBI regulations and the restructuring of the mutual fund industry led to rapid asset growth. Bank mutual funds were recast according to
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the SEBI recommended structure, and the UTI came under voluntary SEBI supervision. 1999-2002 This phase was marked by the rapid growth in the industry, and significant increase in market shares of private sector players. Assets crossed Rs.1,00,000 crore .The tax break offered to mutual fund in 1999 created arbitrage opportunities for a number of institutional players. Bond funds and Liquid funds registered the highest growth in this period, accounting for nearly 60% of the assets. UTI’s share of the industry dropped to nearly 50%.
TYPES OF MUTUAL FUNDS:
Open ended schemes An open-end fund is one that is available for subscription all through the year. This type of Mutual funds does not have a predefined maturity period. The key feature is liquidity. Direct dealing is another noticeable feature. One can easily buy and sell units at Net Asset Value related prices. Close ended schemes Here maturity period is predefined usually ranging from 2 to 15 years. Investment can be done directly in the scheme at the time of the initial issue and units can be brought and sold whenever units are listed in the stock exchanges.
TYPES OF SCHEMES:1. Equity/growth oriented Funds: Equity schemes are those that invest predominantly in equity shares of companies. An equity scheme seeks to provide returns by way of capital appreciation. As a class of assets, equities are subject to greater fluctuations. Hence, the NAVs of these schemes will also fluctuate frequently. Equity schemes are more volatile, but offer better returns. 2. Income Funds: The aim of income funds is to provide regular and steady income to invest. Such schemes generally invest in fixed income securities
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such as bonds, corporate debentures and government securities. Income funds are ideal for capital stability and regular income. 3. Balanced Funds: The aim of balanced funds is to provide both growth and regular income. Such schemes periodically distribute a part of their earning and invest both in equities and fixed income securities in the proportion indicated in their offer documents. 4. Money Market Funds: The aim of money market fund is to proved easy liquidity, preservation of capital and moderate income these schemes generally invest in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money. Returns on these schemes may fluctuate depending upon the invest rates prevailing in the market. These are ideal for corporate and individual investors as a means to park their surplus funds for short periods. 5. Loan Fund: A loan fund is one that changes a commission for entry or exit. That is, each time you buy or sell units in the fund, a commission will be payable. Typically entry and exit loads range form 1% to 2%. It could be worth paying the load, if the fund has a good performance history. 6. No- Load Fund: A no-load fund is one that does not change a commission for entry or exit. That is, no commission is payable on purchase or sale of unit in the fund. The advantage of a no loan fund is that the entire corpus is put to work. Other Schemes: Tax-saving funds: Also known as ELSS or equity-linked savings schemes, these funds offer benefits under Section 88 of the Income-Tax Act. So, on an investment of up to Rs 10,000 a year in an ELSS, one can claim a tax exemption of 20 per cent from his taxable income. One can invest more than Rs 10,000, but then he won’t get the Section 88 benefits for the amount in excess of Rs 10,000. The only drawback to ELSS is that one has to lock into the scheme for three years.
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In terms of investment profile, tax-saving funds are like diversified funds. The one difference is that because of the three year lock-in clause, tax-saving funds get more time to reap the benefits from their stock picks, unlike plain diversified funds, whose portfolios sometimes tend to get dictated by redemption compulsions. SPECIAL SCHEMES 1) Industry specific schemes: Industry specific schemes invest only in the industries in the offer document. The investment of these funds is limited to specific industries Info tech, FMCG, and pharmaceuticals etc. 2) Index funds These funds track a key stock market index, like the BSE (Bombay Stock Exchange) Sensex or the NSE (National Stock Exchange) S&P CNX Nifty. Hence, their portfolio mirrors the index they track, both in terms of composition and the individual stock weightings. For instance, an index fund that tracks the Sensex will invest only in the Sensex stocks. The idea is to replicate the performance of the benchmarked index to near accuracy. Index funds don’t need fund managers, as there is no stock selection involved. Investing through index funds is a passive investment strategy, as a fund’s performance will invariably mimic the index concerned, barring a minor "tracking error". Usually, there’s a difference between the total returns given by a stock index and those given by index funds benchmarked to it. Termed as tracking error, it arises because the index fund charges management fees, marketing expenses and transaction costs (impact cost and brokerage) to its unit holders. So, if the Sensex appreciates 10 per cent during a particular period while an index fund mirroring the Sensex rises 9 per cent, the fund is said to have a tracking error of 1 per cent. To illustrate with an example, assume you invested Rs 1,000 in an index fund based on the Sensex on 1 April 1978, when the index was launched (base: 100). In August, when the Sensex was at 3.457, your investment would be worth Rs 34,570, which works out to an annualised return of 17.2 per cent. A tracking error of 1 per
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cent would bring down your annualised return to 16.2 per cent. Obviously, lower the tracking error, the better are the index funds.
3) Diversified funds Such funds have the mandate to invest in the entire universe of stocks. Although by definition, such funds are meant to have a diversified portfolio (spread across industries and companies), the stock selection is entirely the prerogative of the fund manager. This discretionary power in the hands of the fund manager can work both ways for an equity fund. On the one hand, astute stock-picking by a fund manager can enable the fund to deliver market-beating returns; on the other hand, if the fund manager’s picks languish, the returns will be far lower. Returns from a diversified fund depend a lot on the fund manager’s capabilities to make the right investment decisions. A portfolio concentrated in a few sectors or companies is a high risk, high return proposition. 4) Sector funds The riskiest among equity funds, sector funds invest only in stocks of a specific industry, say IT or FMCG. A sector fund’s NAV will zoom if the sector performs well; however, if the sector languishes, the scheme’s NAV too will stay depressed. Barring a few defensive, evergreen sectors like FMCG and pharmacy, most other industries alternate between periods of strong growth and bouts of slowdowns. The way to make money from sector funds is to catch these cycles– get in when the sector is poised for an upswing and exit before it slips back.
ADVANTAGES OF MUTUAL FUNDS:1. Professional Management Qualified professionals manage money, but they are not alone. They have a research team that continuously analyses the performance and prospects of companies. They also select suitable investments to achieve the objectives of the scheme, so you see that it is a continuous process that takes time and
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expertise that will add value to investment. These fund managers are in a better position to manage investments and get higher returns. 2. Diversification The cliché, "don’t put all eggs in one basket" really applies to the concept of intelligent investing. Diversification lowers risk of loss by spreading money across various industries. It is a rare occasion when all stocks decline at the same time and in the same proportion. Sector funds will spread investment across only one industry and it would not be wise for portfolio to be skewed towards these types of funds for obvious reasons. 3. Choice of Schemes Mutual funds offer a variety of schemes that will suit investors needs over a lifetime. When they enter a new stage in life, all needed to do is sit down with investment advisor who will help to rearrange portfolio to suit altered lifestyle. 4. Affordability A small investor may find that it is not possible to buy shares of larger corporations. Mutual funds generally buy and sell securities in large volumes that allow investors to benefit from lower trading costs. The smallest investor can get started on mutual funds because of the minimal investment requirements. One can invest with a minimum of Rs. 500 in a Systematic Investment Plan on a regular basis. 5. Tax Benefits Investments held by investors for a period of 12 months or more qualify for Capital gains and will be taxed accordingly (10% of the amount by which the investment appreciated, or 20% after factoring in the benefit of cost indexation, whichever is lower). These investments also get the benefit of indexation. 6. Liquidity With open-end funds, you can redeem all or part of investment any time you wish and receive the current value of the shares or the NAV related price. Funds are more liquid than most investments in shares, deposits and bonds and
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the process is standardized, making it quick and efficient so that you can get cash in hand as soon as possible. 7. Rupee Cost Averaging Through using this concept of investing the same amount regularly, mutual funds give investor the advantage of getting the average unit price over the long-term. This reduces risk and also allows you to discipline self by actually investing every month or quarterly and not making sporadic investments. 8. The Transparency of Mutual Funds The performance of a mutual fund is reviewed by various publications and rating agencies, making it easy for investors to compare one to the other. Once you are part of a mutual fund scheme, you are provided with regular updates, for example daily NAVs, as well as information on the specific investments made and the fund manager’s strategy and outlook of the scheme. Easy To Administer Mutual funds units in modern times are not issued in the form of certificates, with a minimum denomination rather they are issued as account statement switch a facility to hold units in fraction upto 4 decimal points. Highly Regulated The governing of mutual funds by SEBI ensures that the fund activities are carried out in the best interest of the investors. DISADVANTAGES OF MUTUAL FUNDS:The following are some of the reasons which are deterrent to mutual fund investment: • Costs despite Negative Returns — Investors must pay sales charges, annual fees, and other expenses regardless of how the fund performs. And, depending on the timing of their investment, investors may also have to pay taxes on any capital gains distribution they receive — even if the fund went on to perform poorly after they bought shares.
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•
Lack of Control — Investors typically cannot ascertain the exact make-up of a fund's portfolio at any given time, nor can they directly influence which securities the fund manager buys and sells or the timing of those trades.
•
Price Uncertainty — with an individual stock, you can obtain real-time (or close to real-time) pricing information with relative ease by checking financial websites or by calling your broker. You can also monitor how a stock's price changes from hour to hour — or even second to second. By contrast, with a mutual fund, the price at which you purchase or redeem shares will typically depend on the fund's NAV, which the fund might not calculate until many hours after you've placed your order. In general, mutual funds must calculate their NAV at least once every business day, typically after the major U.S. exchanges close.
EQUITY SCHEMES:Equity schemes are those that invest predominantly in equity shares of companies. An equity scheme seeks to provide returns by way of capital appreciation. As a class of assets, equities are subject to greater fluctuations. Hence, the NAVs of these schemes will also fluctuate frequently. Equity schemes are more volatile, but offer better returns. These can be further classified into three types: 1. Diversified Equity schemes: The aim of diversified equity funds is to provide the investor with capital appreciation over a medium to long period (generally 2 – 5 years). The fund invests in equity shares of companies from a diverse array of industries and balances (or tries to) the portfolio so as to prevent any adverse impact on returns due to a downturn in one or two sectors. 2. Equity Linked Saving Schemes (ELSS): These schemes generally offer tax rebates to the investor under section 88 of the Income Tax law. These schemes generally diversify the equity risk by investing in a wider array of stocks across sectors. ELSS is usually considered a variant of diversified equity scheme but with a tax friendly offer
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3. Sectoral Fund/ Industry Specific schemes: Industry Specific Schemes invest only in the industries specified in the offer document. The investment of these funds is limited to specific industries like InfoTech, FMCG, and Pharmaceuticals etc. These are ideal for investors who have already decided to invest in particular sector or segment. Sectoral Funds tend to have a very high risk-reward ratio and investors should be careful of putting all their eggs in one basket.
CHAPTER: 2 – DESIGN OF THE STUDY
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OBJECTIVES:1. To analyse the risk and return of Mutual Funds schemes to invest on equity balanced fund – growth. 2. To rank the Mutual Funds schemes depends on the performance and to select the best Mutual Funds schemes.
SCOPE OF THE STUDY:This study was conducted to analyse the performance of the balanced Mutual Funds schemes. Selection of equity balance funds- growth are done here on the basis of their Return, Risk , Return Risk Ratio, Single Index method and performance over the years. Selection of Mutual Funds has been done on the basis of one year performance of the balanced fund from the period from 1st May 2007 to 30th April 2008. Risk Free Return is 2%. Also, 1. Only open ended funds are considered while choosing best equity balanced growth related Mutual Funds. 2. Among growth and balance schemes, only 21 balanced scheme has been taken for this study.
PERIOD OF THE STUDY:Selection of the Mutual Funds schemes was made for the period of one year performance of the Mutual Funds from 1st May 2007 to 30th April 2008.
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METHODOLOGY:
Secondary data was collected from various sources such as internet and financial magazines. The methodology for evaluating portfolio performance balanced fund is based on the Single Index Model, which determines the best portfolio performance based on beta. In this study, the various tools are used for evaluating the performance of the selected schemes. They are. 1. Return 2. Risk 3. Beta
Techniques used: 1. Risk Return Ratio 2. Single Index Model
Return: The return has been computed taking monthly NAV for the period of one year from 1st May 2007 to 30th April 2008. The NAV is adjusted assuming that dividends are reinvested. The Returns are computed as follows: R = (NAV at the end of the Month – NAV at the beginning of the Month)/ NAV at the beginning of the Month X 100 Risk: Two main measures of risk have been used in the study. 1. Standard Deviation (?) 2. Beta (?) Standard Deviation:Standard Deviation of monthly returns is taken as total risk. This measure reflects the degree to which return fluctuate around their average. Standard deviation is calculated as follows.
SD = [1/n*?(R-O)²]½
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Beta:Market risk is commonly measured by the beta coefficient BETA relates the return on a stock or mutual funds to a market index. Beta reflects the sensitivity of the funds return to fluctuations in the market index. Beta is measured as follows. ? = N(?xy - ?x. ?y) / N(?x2 – (?x)2)
ci=(?²M?i=1(?i-Rf )*?iM/?²ei)/(1+?²M?i=1(?²iM/?²ei))
Return Risk Ratio: Return Risk Ratio is measured by dividing the highest return with lowest risk.
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CHAPTER: 3 – THE STUDY
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EQUITY BALANCE FUNDS- GROWTH
21 Mutual Funds schemes performance has been taken for the purpose of analysis of this study. They are
1. BIRLA SUN LIFE BALANCE FUND - GROWTH
Objective: The Scheme aims to balance income requirements with growth of capital through balanced mix of investment in equity and debt. SCHEME PERFORMANCE (%) AS ON APR 30, 2008
1 Month 0.92 3 Months -16.08 6 Months -20.17 1 Year -23.60 3 Years 6.90 5 Years 13.32 Since Inception 10.71
Top 10 Holdings:
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Stock
Sector
P/E
Percentage of Net Assets
Qty
Value
Percentage of Change with last month 15.14 -0.21 24.69 -0.32 -13.21 NA -10.82 -3.32 NA
Cash Citibank GOI ITC Ltd EID Parry (India) Ltd
Current Assets Banks Securities Tobacco & Pan Masala Sugar
NA NA NA 18.62 127.03 7.79 8.30 17.54 9.25
8.72 7.58 5.88 5.55 5.50 5.36 4.38 3.84 3.24
NA NA NA 274,927 259,474 NA 155,062 63,596 NA
8.13 7.07 5.48 5.17 5.13 5.00 4.08 3.58 3.02
Industrial Development Banks Bank of India Ltd Novartis India Ltd Pfizer Ltd Power Finance Corporation Ltd Pharmaceuticals Pharmaceuticals Finance
Oil & Gas, Reliance Industries Ltd Petroleum & Refinery
Increase/Decrease in Fund Size since April 30, 2008 (Rs. in corers) Mutual Fund
13.93
3.13
14,977
2.92
-8.90
-11.6 Birla Mutual Fund Ahura Centre , 2nd Floor, A. 96/A-D, Mahakali Caves Road, Andheri (E) Mumbai Tel.-56928000 Birla Sunlife Asset Management Company Ltd. 2nd Floor, Tower B Ahura Centre, 96 A D, Mahakali Caves Road, Andheri(E) Mumbai - 400093 Tel.- 56928000 Computer Age Management Services Private Limited A&B, Lakshmi Bhavan 609, Anna Salai Chennai
Asset Management Company
Registrar
Fund Features:
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Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Exit Load NA 5000 Daily Daily Nil
Open Ended Equity & Debt Growth Oct 4, 1999 10 81.61 as on April, 2008
If redeemed bet. 0 Months to 12 Months; and Amount Bet. 0 to 49999999 then Exit load is 1%. and Amount greater than 50000000 then Exit load is 0%.
Asset Allocation (%):
Equity 55.44 Debt 23.12 Cash & Equivalent 21.44
2. DSP BLACKROCK BALANCED FUND - GROWTH
Objective: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. SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month -2.07 3 Months -20.15 6 Months -24.76 1 Year -27.52 3 Years 12.11 5 Years 18.49 Since Inception 14.84
Top 10 Holdings:-
31
Stock
Sector
P/E
Percentag e of Net Assets
Qty
Value
Percentage of Change with last month
Industrial Development Bank of Banks India Ltd LIC Housing Finance Finance Ltd Hindustan Lever Ltd Oil & Natural Gas Corpn Ltd Diversified Oil & Gas, Petroleum & Refinery
7.79 3.60 25.09 8.01 6.01 17.95 NA 15.92 22.99
11.41 5.17 3.72 3.06 2.74 2.54 2.20 1.83 1.63
600 25 775,204 155,851 150 170,244 NA 69,030 69,687
60.00 27.17 19.55 16.12 14.39 13.36 11.57 9.65 8.57
NA -0.17 0.68 482.79 -25.05 -29.63 122.62 -47.18 118.41
Shriram Transport Finance Finance Company Ltd Bharti Airtel Ltd CBLO Infosys Technologies Ltd HDFC Bank Ltd Telecom Current Assets Computers Software & Education Banks
Asset Allocation (%):Equity 60.19 Debt 37.05
-87.72 DSP Blackrock Mutual Fund Tulsiani Chambers, West Wing, 11th Floor, Nariman Point Mumbai Tel.-56578000 DSP Blackrock Fund Managers Tulsiani Chambers, West Wing, 11th Floor, Nariman Point Mumbai - 400021 Tel.- 66578000 Computer Age Management Services Private Limited A&B, Lakshmi Bhavan 609, Anna Salai Chennai
Cash & Equivalent 2.76
Increase/Decrease in Fund Size since April 30, 2008 (Rs. in crores) Mutual Fund
Asset Management Company
Registrar
Fund Features:
32
Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr.
Open Ended Equity & Debt Growth May 14, 1999 10 438.24 as on April 30 , 2008
Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Exit Load
NA 5000 Daily Daily Entry Load is 1%. If redeemed bet. 0 Months to 12 Months; Exit load is 1.25%.
3. HDFC BALANCED FUND – GROWTH
Objectives: 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. SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month -1.96 3 Months -21.07 6 Months -24.56 1 Year -27.90 3 Years 4.69 5 Years 12.22 Since Inception 12.90
33
Top 10 Holdings:
Percentage of Net Assets 5.99 5.46 4.94 4.91 4.65 4.49 4.41 4.07 3.91 3.83 Percentage of Value Change with last month 6.04 5.51 4.99 4.96 4.70 4.53 4.45 4.11 3.94 3.87 -8.79 -27.23 NA NA 0.11 1.05 0.75 -4.22 -0.11 2,327.85
Stock Reliance Industries Ltd
Sector
P/E
Qty 31,000 380,000 50 50 50 8 30,000 200,000 4 NA
Oil & Gas, Petroleum 13.93 & Refinery Coromandel Fertilisers Fertilizers, Pesticides 5.75 Ltd & Agrochemicals Power Finance Finance 9.25 Corporation Ltd L & T Finance Ltd Finance NA Housing Development Finance Corporation Ltd Grasim Industries Ltd Sun Pharmaceuticals Industries Ltd Federal Bank Ltd Shriram Transport Finance Company Ltd Reverse Repo Finance Cement Pharmaceuticals Banks Finance Current Assets 20.61 4.47 19.75 5.65 6.01 NA
Asset Allocation (%): Equity 69.30 Debt 29.95 Cash & Equivalent 0.75
Increase/Decrease in Fund Size since April 30, 2008 (Rs. in crores) Mutual Fund
-19.05 HDFC Mutual Fund Ramon House, 3rd Floor, H.T. Parekh Marg 169, Backbay Reclamation, Churchgate Mumbai Tel.-22029111 ,56316333 HDFC Asset Management Company Limited Ramon House, 3rd Floor, H.T. Parekh Marg 169, Backbay Reclamation, Churchgate Mumbai - 400020 Tel.- 22029111 Computer Age Management Services
Asset Management Company
Registrar
34
Private Limited A&B, Lakshmi Bhavan 609, Anna Salai Chennai
Fund Features:
Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Open Ended Equity & Debt Growth Aug 10, 2000 10 81.87 as on 30, 2008
Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Exit Load
NA 5000 Daily Daily Nil If redeemed bet. 0 Year to 1 Year; and Amount Bet. 0 to 49999999 then Exit load is 1%. and Amount greater than 50000000 then Exit load is 0%.
4. ESCORTS OPPORTUNITIES FUND – GROWTH
Objective: To generate long term capital appreciation by predominantly moving investments in a portfolio of equity and equity related securities SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month 0.01 3 Months -14.85 6 Months -20.27 1 Year -29.13 3 Years 3.16 5 Years 8.10 Since Inception 11.29
Top 10 Holdings:
35
Stock Current Assets
Sector
Percentage P/E of Net Assets 13.30 4.43 4.42
Qty NA 29,604 45,431
Value 21.75 7.24 7.23
Percentage of Change with last month -13.82 1.23 0.20
Current Assets NA Engineering & Larsen & Toubro Limited 19.55 Industrial Machinery Electricals & Bharat Heavy Electricals Electrical 21.91 Ltd Equipments Infrastructure Development Finance company ICICI BANK LTD. Finance Banks 10.14 10.78 17.95 2.25 10.78 NA NA
4.11 3.81 3.78 3.52 3.29 3.17 3.07
935,096 116,312 78,873 NA NA NA NA
6.72 6.23 6.19 5.76 5.38 5.18 5.03
11.47 94.91 NA 7.06 68.32 7.33 7.39
Bharti Airtel Ltd Telecom First Leasing Company of Finance India Ltd ICICI BANK LTD. Banks NABARD ICICI Home Finance Co Ltd Finance Finance
Asset Allocation (%):Equity 27.16 Debt 31.78 Cash & Equivalent 41.06
Increase/Decrease in Fund Size since April 30, 2008 (Rs. in crores) Mutual Fund
-10.8 Escorts Mutual Fund 11, Scindia House Connaught Circus New Delhi Tel.-23321654 ,51514100 , 32308046 Escorts Asset Management Ltd. 11, Scindia House Connaught Circus New Delhi - 110001 Tel.- 3321654 In-House - Escorts 11, Scindia House Connaught Circus New Delhi.
Asset Management Company
Registrar
Fund Features:
36
Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Exit Load NA 50000 Daily Weekly Entry Load is 0%.
Open Ended Equity & Debt Growth Feb 26, 2001 10 152.77 as on April 30 , 2008
If redeemed bet. 0 Months to 3 Months; Exit load is 0.75%. If redeemed bet. 3 Months to 6 Months; Exit load is 0.5%. If redeemed bet. 6 Months to 9 Months; Exit load is 0.25%.
5. RELIANCE REGULAR SAVINGS FUND - BALANCED – GROWTH
Objective: 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. SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month 6.54 3 Months -18.52 6 Months -21.95 1 Year -30.16 3 Years 3.10 5 Years NA Since Inception 2.9
Top 10 Holdings:
37
Stock Cash Reliance Communication Ventures Ltd. ICICI BANK LTD. Wipro Ltd Divis Laboratories Limited Sterlite Industries (India) Ltd Nagarjuna Construction Company Ltd United Phosphorus Limited (New) Oil & Natural Gas Corpn Ltd
Sector Current Assets Telecom Banks Computers - Software & Education Pharmaceuticals Metals Housing & Construction
P/E NA 25.82 10.78 13.14 17.54 14.07 8.28 26.03 8.01 13.93
Percentage of Net Assets 45.69 6.15 5.93 5.02 4.93 4.75 4.39 4.01 3.97 3.60
Qty NA 50,006 30,003 40,005 10,001 30,003 123,812 35,166 10,401 5,001
Percentage of Value Change with last month 12.38 1.67 1.61 1.36 1.34 1.29 1.19 1.09 1.08 0.97 1.20 -15.47 -20.12 -21.36 -12.20 2.77 -23.21 8.18 -29.63 -43.23
Fertilizers, Pesticides & Agrochemicals Oil & Gas, Petroleum & Refinery Oil & Gas, Petroleum Reliance Industries Ltd & Refinery
Asset Allocation (%):Equity 63.94 Debt 0.00
-3.69 Reliance Mutual Fund Kamala Mills Compound, Trade World, B - Wing 7th Floor, Senapati Bapat Marg, Lower parel (West) Mumbai Tel.-30414800 Reliance Capital Asset Management Ltd. Kamala Mills Compound, Trade World, B - Wing 7th Floor, Senapati bapat marg, Lower parel (West) Mumbai - 400013 Tel.- 30414800 Karvy Computershare Pvt. Ltd. 21, Avenue 4, Street No 1, Banjara Hills Hyderbad
Cash & Equivalent 36.06
Increase/Decrease in Fund Size since April 30, 2008 (Rs. in corers) Mutual Fund
Asset Management Company
Registrar
Fund Features: 38
Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr.
Open Ended Equity & Debt Growth May 10, 2005 10 23.41 as on April 30, 2008
Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load
NA 500 Daily Daily Amount Bet. 0 to 19999999 then Entry load is 2.25%. and Amount Bet. 20000000 to 49999999 then Entry load is 1.25%. and Amount greater than 50000000 then Entry load is 0%. If redeemed bet. 0 Year to 1 Year; and Amount Bet. 0 to 49999999 then Exit load is 1%. and Amount greater than 50000000 then Exit load is 0%.
Exit Load
6. FRANKLIN TEMPLETON INDIA BALANCED FUND – GROWTH
Objective: 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. SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month 0.12 3 Months -18.73 6 Months -23.77 1 Year -31.21 3 Years 9.98 5 Years 16.36 Since Inception 13.09
Top 10 Holdings:
39
Stock Tata Sons Ltd. Power Finance Corporation Ltd Housing Development Finance Corporation Ltd Bharti Airtel Ltd Rural Electrification Corporation HDFC Bank Ltd Reliance Industries Ltd
Sector Finance Finance Finance Telecom Electricals & Electrical Equipments Banks Oil & Gas, Petroleum & Refinery Computers Software & Education
Percentage P/E of Net Assets NA 9.25 20.61 17.95 5.07 22.99 13.93 13.01 8.49 5.48 4.96 4.81 4.77 4.57
Qty NA NA 66,288 163,700 NA 100,593 60,868
Value 33.70 21.99 14.19 12.85 12.45 12.36 11.85
Percentage of Change with last month 27.62 NA -8.66 -6.24 -0.57 -3.80 -8.89
Infosys Technologies Ltd Larsen & Toubro Limited Indian Railway Finance Corporation Ltd
15.92
4.53 4.47 4.43
83,890 47,373 NA
11.72 11.57 11.47
-20.10 -5.70 77.30
Engineering & 19.55 Industrial Machinery Finance NA
Asset Allocation (%):Equity 61.75 Debt 37.60
-40.61 Franklin Templeton Investments 1st Floor, Sakhar Bhavn, 230 Backbay Reclamation, Nariman Point, Mumbai Tel.-56325820 ,56325836 Templeton Asset Management (India) Pvt. Ltd. Wockhardt Towers, 4th Floor, Bandra Kurla Complex, Mumbai - 400051 Tel.- 67519100 Franklin Templetion Asset Managment (India) Pvt. Ltd. Franklin Templetion Centre, no.7, 3rd Cross Street, Adyar Chennai Tel.-24407000,
Cash & Equivalent 0.65
Increase/Decrease in Fund Size since April 30, 2008 (Rs. in crores) Mutual Fund
Asset Management Company
Registrar
Fund Features:-
40
Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load NA 5000 Daily Daily
Open Ended Equity & Debt Growth Dec 10, 1999 10 218.38 as on April 30 , 2008
Amount Bet. 0 to 49999999 then Entry load is 2.25%. and Amount greater than 50000000 then Entry load is 0%. If redeemed bet. 0 Months to 6 Months; and Amount Bet. 0 to 49999999 then Exit load is 1%. If redeemed bet. 6 Months to 12 Months; and Amount Bet. 0 to 49999999 then Exit load is 0.5%. If redeemed bet. 0 Months to 6 Months; and Amount greater than 50000000 then Exit load is 1%.
Exit Load
7. BIRLA SUN LIFE 95 – GROWTH
Objective:The scheme aims to generate long term growth of capital and current income from a portfolio of equity and fixed income securities. SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month 1.06 3 Months -22.34 6 Months -29.77 1 Year -32.70 3 Years 6.25 5 Years 16.62 Since Inception 21.84
41
Top 10 Holdings:
Percentage of Change with last month NA -20.08 NA -0.32 NA -12.75 -65.11 NA 91.37 -8.83
Stock Power Finance Corporation Ltd Rallis India Ltd Indian Railway Finance Corporation Ltd ITC Ltd GOI Trent Ltd Cash
Sector
Percentage P/E of Net Assets 9.25 7.63 6.84 6.07 4.28 4.16 4.16 4.16 3.79 3.70 3.69
Qty
Value
Finance
NA 208,122 NA 299,920 NA 122,768 NA NA NA 24,962
10.05 9.02 8.00 5.64 5.48 5.48 5.48 5.00 4.88 4.87
Fertilizers, Pesticides & 6.49 Agrochemicals Finance NA
Tobacco & Pan Masala 18.62 Securities Textiles Current Assets NA 21.34 NA 7.79 10.78 13.93
Industrial Development Banks Bank of India Ltd ICICI BANK LTD. Banks Reliance Industries Ltd Oil & Gas, Petroleum & Refinery
Asset Allocation (%):Equity 58.80 Debt 21.92 Cash & Equivalent 19.28
Increase/Decrease in Fund Size since April 30, 2008 (Rs. in crores) Mutual Fund
-20.81 Birla Mutual Fund Ahura Centre , 2nd Floor, A. 96/A-D, Mahakali Caves Road, Andheri (E) Mumbai Tel.-56928000 Birla Sunlife Asset Management Company Ltd. 2nd Floor, Tower B Ahura Centre, 96 A D, Mahakali Caves Road, Andheri(E) Mumbai - 400093 Tel.- 56928000 Computer Age Management Services Private Limited A&B, Lakshmi Bhavan
Asset Management Company
Registrar
42
609, Anna Salai Chennai
Fund Features:Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Open Ended Equity & Debt Growth Feb 11, 1995 10 111.02 as on April 30 , 2008
Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Exit Load
NA 5000 Daily Daily Amount Bet. 0 to 49999999 then Entry load is 2.25%. If redeemed bet. 0 Month to 12 Month; and Amount Bet. 0 to 49999999 then Exit load is 1%.
8. KOTAK BALANCE – GROWTH
Objective: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. SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month 1.76 3 Months -19.33 6 Months -25.72 1 Year -32.84 3 Years 9.26 5 Years 19.40 Since Inception 14.35
Top 10 Holdings:
43
Stock CBLO Kotak Mahindra Primus Indian Railway Finance Corporation Ltd ICICI BANK LTD. Reliance Industries Ltd
Sector Current Assets Finance Finance Banks Oil & Gas, Petroleum & Refinery
Percentage P/E of Net Assets NA NA NA 10.78 13.93 12.94 8.74 7.39 5.67 5.02
Qty NA NA NA NA 17,500
Value 8.80 5.94 5.02 3.86 3.41
Percentage of Change with last month 27.54 -0.36 -0.11 161.13 -6.10
Oil & Gas, Oil & Natural Gas Corpn Petroleum & Ltd Refinery Kotak Mahindra Bank Banks Ltd. Housing Development Finance Finance Corporation Ltd Electricals & Bharat Heavy Electricals Electrical Ltd Equipments Axis Bank Ltd Banks
8.01 42.58 20.61 21.91 14.41
3.01 2.94 2.85 2.81 2.65
19,800 NA 9,050 12,000 25,000
2.05 2.00 1.94 1.91 1.80
0.17 NA -8.02 -2.75 -0.47
Asset Allocation (%):Equity 59.13 Debt 26.04 Cash & Equivalent 14.83
Increase/Decrease in Fund Size since April 30, 2008 (Rs. in crores) Mutual Fund
-11.35 Kotak Mahindra Mutual Fund Sakhar Bhavan 9th Floor, 91-92, Nariman Point Mumbai Tel.-66384444 Kotak Mahindra Asset Management Company Ltd. 5A, 5th Floor, Bakhtawar, 229, Nariman Point Mumbai - 400021 Tel.- 56384444 Computer Age Management Services Private Limited A&B, Lakshmi Bhavan 609, Anna Salai Chennai
Asset Management Company
Registrar
44
Fund Features:Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Open Ended Equity & Debt Growth Nov 23, 1999 10 56.67 as on April 30, 2008
Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Exit Load
40 % as on Mar 26, 2008 5000 Daily Daily Amount Bet. 0 to 49999999 then Entry load is 2.25%. and Amount greater than 50000000 then Entry load is 0%. If redeemed bet. 0 Months to 6 Months; Exit load is 1%.
9. LIC BALANCED - PLAN C (GROWTH)
Objective: The Scheme aims to provide regular flow of dividend and capital appreciation especially when the unit is held for a longer period. SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month -0.49 3 Months -20.18 6 Months -26.29 1 Year -33.72 3 Years 7.17 5 Years 11.59 Since Inception 6.49
Top 10 Holdings:
45
Stock
Sector
Percentage P/E of Net Assets 57.18 NA 14.44 8.32 8.07 7.23 7.23 7.23 6.64
Qty NA NA 129,887 NA NA NA 55,058
Value 4.00 2.30 2.23 2.00 2.00 2.00 1.84
Percentage of Change with last month 0.12 83.68 15.71 -50.00 NA NA -15.45
IL&FS Investsmart Ltd. Finance Cash Current Assets NTPC Limited. Era Constructions (India) Ltd. Alok Industries Ltd Bajaj Hindustan Ltd Reliance Communication Ventures Ltd. Power Grid Corporation of India Ltd Core Projects & Technologies Ltd Bharti Airtel Ltd
Power Generation, 16.44 Transmission & Equip Housing & Construction Textiles Sugar Telecom 10.36 1.86 5.05 25.82
Power Generation, 19.33 Transmission & Equip Computers - Software & Education Telecom NA 17.95
5.16 4.70 4.26
166,488 49,933 15,004
1.43 1.30 1.18
-7.80 -13.28 -6.04
Asset Allocation (%):Equity 45.75 Debt 34.80 Cash & Equivalent 19.45
Increase/Decrease in Fund Size since April 30, 2008 (Rs. in crores) Mutual Fund
-4.68 LIC Mutual Fund Industrial Assurance Bldg. 4th Floor, Opp.Churchgate Stn. Mumbai Tel.-22885971 ,55719750 Jeevan Bima Sahyog Asset Management Company Ltd. Industrial Assurance Building, 4 th Floor Opp. Churchgate Station Mumbai - 400020 Tel.- 22885971 Karvy Computershare Pvt. Ltd. 21, Avenue 4, Street No 1, Banjara Hills Hyderbad
Asset Management Company
Registrar
Fund Features:-
46
Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr.
Open Ended Equity & Debt Growth Jan 1, 1991 10 22.98 as on April 30, 2008
Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Exit Load
NA 1000 Daily Daily Amount Bet. 0 to 10000000 then Entry load is 2.25%. and Amount greater than 10000001 then Entry load is 0%. Exit Load is 0%.
10. PRINCIPAL BALANCED FUND – GROWTH
Objective: Aims to generate long term capital appreciation and current income by investing in a portfolio of equity, equity related securities and fixed income securities. SCHEME PERFORMANCE (%) AS ON APRIL 30 , 2008 1 Month 2.35 3 Months -21.31 6 Months -28.01 1 Year -34.18 3 Years 5.30 5 Years 13.03 Since Inception 7.67
Top 10 Holdings:
47
Stock Corporation Bank Reliance Industries Ltd
Sector
Percentage P/E of Net Assets 11.05 5.00 4.51 4.51 4.18 3.49 3.26 3.22 3.06 2.25
Qty NA 16,747 NA NA NA NA 39,743 91,946 NA 18,717
Value 7.21 3.26 2.94 2.94 2.73 2.28 2.13 2.10 2.00 1.47
Percentage of Change with last month -0.15 -8.87 286.98 NA 0.03 -0.61 -20.23 -5.10 -0.31 -29.0
Banks 5.15 Oil & Gas, Petroleum 13.93 & Refinery 20.61 NA NA NA 10.78 20.24 NA 17.95
Housing Development Finance Finance Corporation Ltd TML Financial Services Finance Ltd State Bank of Patiala Banks Cash ICICI BANK LTD. Cipla Ltd Loan Receivable Trust April 2008 Series T2 18Au Bharti Airtel Ltd Current Assets Banks Pharmaceuticals Finance Telecom
Asset Allocation (%) :Equity 67.94 Debt 22.88 Cash & Equivalent 9.18
Increase/Decrease in Fund Size since April 30, 2008 (Rs. in crores) Mutual Fund
-11.34 PRINCIPAL Mutual Fund 3rd Floor, Exchange Plaza, B-wing A NSE Building, Bandra Kurla Complex, Bandra-E Mumbai Tel.-22021111 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 Karvy Computershare Pvt. Ltd. 21, Avenue 4, Street No 1, Banjara Hills Hyderbad
Asset Management Company
Registrar
48
Funds Features:
Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Open Ended Equity & Debt Growth Jan 14, 2000 10 53.95 as on April 30 , 2008
Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Exit Load
NA 5000 Daily Daily Amount Bet. 0 to 49999999 then Entry load is 2.25%. If redeemed bet. 0 Months to 12 Months; Exit load is 1%.
11. CANARA ROBECO BALANCE – GROWTH
Objective: Aims to provide combination of long term capital appreciation and income from a balanced portfolio of equity and fixed income securities. SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month 1.60 3 Months -18.88 6 Months -24.79 1 Year -34.48 3 Years 10.47 5 Years 18.47 Since Inception 8.11
49
Top 10 Holdings
ercentage of Net Assets 7.49 6.44 4.25 4.03 3.94 3.93 3.77 3.28 2.76 2.66 Percentage of Value Change with last month 8.94 7.69 5.08 4.82 4.71 4.70 4.50 3.92 3.30 3.17 84.83 22.00 -10.22 -0.35 -26.94 -0.15 13.65 NA -17.79 -17.44
Stock ICICI BANK LTD. Reliance Industries Ltd ITC Ltd ICICI BANK LTD. Bharti Airtel Ltd Tata Steel Ltd. HDFC Bank Ltd Corporation Bank Larsen & Toubro Limited Bharat Heavy Electricals Ltd Banks
Sector
P/E 10.78
Qty 900 39,500 270,000 50 60,000 50 450 400 13,500 20,000
Oil & Gas, Petroleum & 13.93 Refinery Tobacco & Pan Masala Banks Telecom Steel Banks Banks 18.62 10.78 17.95 2.77 22.99 5.15
Engineering & Industrial 19.55 Machinery Electricals & Electrical Equipments 21.91
Asset Allocation: Equity 68.45 Debt 18.09 Cash & Equivalent 13.46
Increase/Decrease in Fund Size since April 30, 2008 (Rs. in crores) Mutual Fund
-21.26 Canara Robeco Mutual Fund 4th Floor, Construction House, 5 Walchand Hirachand Road, Ballard Estate Mumbai Tel.-66585000 ,66585086 Canara Robeco Asset Management Company Ltd. Mr. R. Swamination Construction House, 4Th Floor 5, Walchand Hirachand Marg, Ballard Estate Mumbai - 400001 Tel.- 56585042 Karvy Computershare Pvt. Ltd. 21, Avenue 4, Street No 1, Banjara Hills
Asset Management Company
Registrar
50
Hyderbad
Fund Features:
Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Open Ended Equity & Debt Growth Feb 1, 1993 10 98.21 as on April 30, 2008
Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Exit Load
NA 5000 Daily Daily Amount Bet. 0 to 19999999 then Entry load is 2.25%. and Amount greater than 20000000 then Entry load is 0%. If redeemed bet. 0 Year to 1 Year; and Amount Bet. 0 to 49999999 then Exit load is 1%. and Amount greater than 50000000 then Exit load is 0%.
12. ING BALANCED FUND – GROWTH
Objective: The fund seeks to generate long term growth of capital and current income from a portfolio of equity and fixed income securities. SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month 1.09 3 Months -23.37 6 Months -28.51 1 Year -34.55 3 Years 3.31 5 Years 12.18 Since Inception 5.47
Top 10 Holdings:
51
Stock CBLO Reliance Industries Ltd Bharti Airtel Ltd Infosys Technologies Ltd
Sector
Percentage P/E of Net Assets 30.04 6.86 3.81 3.52 3.22 3.19 3.02 2.66 2.59 2.18
Qty NA 2,041 2,813 1,460 1,804 3,458 9,311 1,253 2,258 3,791
Value 1.74 0.40 0.22 0.20 0.19 0.19 0.18 0.15 0.15 0.13
Percentage of Change with last month 5.58 -8.26 -6.62 -21.68 2.93 -18.22 2.45 -6.23 5.05 -13.23
Current Assets NA Oil & Gas, Petroleum 13.93 & Refinery Telecom 17.95
Computers Software & 15.92 Education Oil & Natural Gas Corpn Oil & Gas, Petroleum 8.01 Ltd & Refinery ICICI BANK LTD. Banks 10.78 ITC Ltd HDFC Bank Ltd Tobacco & Pan Masala 18.62 22.99 12.32 25.82
Banks Computers Tata Consultancy Services Software & Ltd. Education Reliance Communication Telecom Ventures Ltd.
Asset Allocation (%):Equity 69.88 Debt 0.00 Cash & Equivalent 30.12
Increase/Decrease in Fund Size since April 30, 2008 (Rs. in crores) Mutual Fund
-1.07 ING Mutual Fund 101 Windsor , 1st Floor,Off C.S.T.Road, Santacruz E Mumbai Tel.-3982 7999 ING Investment Management (India) Pvt Ltd. 17, Lincoln Lodge, Altamount Road, Mumbai - 400036 Tel.- 39827999 Computer Age Management Services Private Limited A&B, Lakshmi Bhavan 609, Anna Salai Chennai
Asset Management Company
Registrar
Fund Features:
52
Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Exit Load NA 5000 Daily Daily Nil
Open Ended Equity & Debt Growth Apr 17, 2000 10 4.73 as on April 30, 2008
If redeemed bet. 0 Days to 180 Days; and Amount Bet. 0 to 9999999 then Exit load is 1%. If redeemed bet. 181 Days to 365 Days; and Amount Bet. 0 to 9999999 then Exit load is 0.5%.
13. HDFC PRUDENCE FUND – GROWTH
Objective: 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/ minimized any capital erosion. SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month -1.74 3 Months -21.36 6 Months -27.51 1 Year -34.86 3 Years 6.90 5 Years 18.30 Since Inception 16.59
Top 10 Holdings:
53
Stock ICICI BANK LTD. Oil & Natural Gas Corpn Ltd NABARD AIA Engineering Limited.
Sector Banks Oil & Gas, Petroleum & Refinery Finance Engineering & Industrial Machinery
Percentage P/E of Net Assets 10.78 8.01 NA 11.67 NA 20.61 4.90 3.98 3.86 3.04 2.95 2.87
Qty 2,178,517 915,000 950 530,000 700 700
Value 116.67 94.63 91.87 72.37 70.20 68.36
Percentage of Change with last month -15.54 1.07 -0.02 -12.83 NA -0.32
Indian Railway Finance Finance Corporation Ltd Housing Development Finance Corporation Ltd Finance
Electricals & Crompton Greaves Ltd Electrical Equipments Punj Lloyd Ltd. Glaxo Smithkline Consumer Ltd Apollo Tyres Ltd Housing & Construction Food & Dairy Products Rubber & Tyres
15.88 16.31 13.54 6.77
2.86 2.77 2.62 2.53
2,937,500 2,300,000 1,000,000 16,050,000
68.06 66.02 62.30 60.19
-14.58 -4.68 -5.10 -6.28
Asset Allocation (%):Equity 74.15
Increase/Decrease in Fund Size since April 30, 2008 (Rs. in crores) Mutual Fund
Debt 25.03
-507.16
Cash & Equivalent 0.82
HDFC Mutual Fund Ramon House, 3rd Floor, H.T. Parekh Marg 169, Backbay Reclamation, Churchgate Mumbai Tel.-22029111 ,56316333 HDFC Asset Management Company Limited Ramon House, 3rd Floor, H.T. Parekh Marg 169, Backbay Reclamation, Churchgate Mumbai - 400020 Tel.- 22029111 Computer Age Management Services Private Limited A&B, Lakshmi Bhavan 609, Anna Salai Chennai
Asset Management Company
Registrar
54
Fund Features:
Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Open Ended Equity & Debt Growth Jan 31, 1994 10 1872.59 as on April 30, 2008 12 % as on Sep 28, 1998 5000 Daily Daily Amount Bet. 0 to 49999999 then Entry load is 2.25%. and Amount greater than 50000000 then Entry load is 0%. If redeemed bet. 0 Months to 12 Months; and Amount Bet. 0 to 49999999 then Exit load is 1%. and Amount greater than 50000000 then Exit load is 0%.
Exit Load
14. SBI MAGNUM BALANCED FUND – GROWTH
Objective: The fund aims to provide to its Investors growth through capital appreciation. It also plans to provide periodic income through declaration of dividends SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month 1.57 3 Months -21.05 6 Months -27.34 1 Year -35.96 3 Years 7.12 5 Years 21.19 Since Inception 14.73
55
Top 10 Holdings:
Percentage of Net Assets 7.64 6.57 6.09 5.24 4.01 3.49 3.06 2.96 2.91 2.65 Percentage of Value Change with last month 28.35 24.40 22.62 19.46 14.91 12.97 11.38 10.99 10.81 9.84 NA -0.01 0.01 1.19 NA 5.84 -13.10 -5.71 5.20 -3.83
Stock IDBI Home Finance Finance Ltd Jammu and Kashmir Banks Bank Ltd Axis Bank Ltd Banks Reliance Industries Ltd Tata Motors Ltd ICICI BANK LTD. Bharat Heavy Electricals Ltd Larsen & Toubro Limited Bharti Airtel Ltd Oil & Natural Gas Corpn Ltd
Sector
P/E NA 4.86 14.41 13.93
Qty NA NA NA 99,838 NA 242,152 71,489 44,937 137,751 95,133
Oil & Gas, Petroleum & Refinery
Auto & Auto ancilliaries 4.43 Banks 10.78 Electricals & Electrical Equipments 21.91
Engineering & Industrial 19.55 Machinery Telecom Oil & Gas, Petroleum & Refinery 17.95 8.01
Asset Allocation (%):Equity 72.50 Debt 1.65 Cash & Equivalent 25.85
Increase/Decrease in Fund Size since April 30, 2008 (Rs. in crores) Mutual Fund
-68.31 SBI Mutual Fund 191, Maker Tower E, Cuffe Parade Mumbai Tel.-22180221 SBI Funds Management Ltd. 191, Maker Tower E Wing, Cuffe Parade Mumbai - 400005 Tel.- 22180221 Computer Age Management Services Private Limited A&B, Lakshmi Bhavan 609, Anna Salai Chennai
Asset Management Company
Registrar
56
Fund Features:
Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load 20 % as on Feb 3, 2004 1000 Daily Daily Amount Bet. 0 to 49999999 then Entry load is 2.25%. and Amount greater than 50000000 then Entry load is 0%. If redeemed bet. 0 Months to 6 Months; and Amount Bet. 0 to 49999999 then Exit load is 1%. If redeemed bet. 6 Months to 12 Months; and Amount Bet. 0 to 49999999 then Exit load is 0.5%. If redeemed after 12 Months; and Amount Bet. 0 to 49999999 then Exit load is 0%. and Amount greater than 50000000 then Exit load is 0%. Open Ended Equity & Debt Growth Oct 31, 1995 10 302.96 as on April 30, 2008
Exit Load
15. SUNDARAM BNP PARIBAS BALANCED FUND – GROWTH
Objective: The scheme seeks to generate capital appreciation and current income through a mix of investments in Equities and Fixed Income Securities. SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month -2.03 3 Months -22.29 6 Months -27.51 1 Year -35.99 3 Years 5.80 5 Years 12.28 Since Inception 12.86
Top 10 Holdings:
57
Stock Cash State Bank of India Power Finance Corporation Ltd Reliance Industries Ltd Union Bank Of India Ltd Hindustan Lever Ltd Tata Steel Ltd. ABB Ltd ICICI BANK LTD. Oil & Natural Gas Corpn Ltd
Sector Current Assets Banks Finance
P/E NA 9.59 9.25
Percentage of Net Assets 20.73 8.57 8.21 8.06 5.48 4.72 4.67 4.43 4.30 3.89
Qty NA 21,672 NA 15,295 NA 69,239 40,475 20,764 29,728 13,927
Percentage of Value Change with last month 7.67 3.17 3.04 2.98 2.03 1.75 1.73 1.64 1.59 1.44 103.93 6.60 2.35 -6.69 2.52 5.37 -27.20 -7.75 -18.56 3.38
Oil & Gas, Petroleum & 13.93 Refinery Banks Diversified Steel Electricals & Electrical Equipments Banks Oil & Gas, Petroleum & Refinery 4.28 25.09 2.77 21.21 10.78 8.01
Asset Allocation (%):Equity 66.61 Debt 16.97 Cash & Equivalent 16.42
Increase/Decrease in Fund Size since April 30, 2008 (Rs. in crores) Mutual Fund
-7 Sundaram BNP Paribas Mutual Fund 46, Whites Road, 2nd Floor, Roy Pettah Chennai Tel.-28583362 ,28583367 Sundaram BNP Paribas Asset Management Co Ltd. 46, Whites Road 2nd Floor, Royapettah Chennai - 600014 Tel.- 28583362 Computer Age Management Services Private Limited A&B, Lakshmi Bhavan 609, Anna Salai Chennai
Asset Management Company
Registrar
58
Fund Features:
NA 5000 Daily Daily Amount Bet. 0 to 19999999 then Entry load is 2.25%. If redeemed bet. 0 Months to 6 Months; Exit load is 1%. If redeemed bet. 6 Months to 12 Months; and Amount Bet. 0 to 19999999 then Exit load is 1%. If redeemed after 12 Months; Exit load is 0%.
Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Exit Load
16. UTI BALANCED FUND – GROWTH
Objective: 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.
S CHE ME PE RFORMANCE (%) AS O N APRI L 30, 2008 1 Month -1.02 3 Months -20.44 6 Months -26.59 1 Year -36.14 3 Years 3.78 5 Years 11.22 Since Inception 12.75
Top 10 Holdings:-
59
Stock CORPORATE LOAN SECURITISATION SERIES 54 TRUST 2008 Reliance Industries Ltd CORPORATE LOAN SECURITISATION SERIES 53 TRUST 2008 State Bank of India Bharat Heavy Electricals Ltd
Sector
P/E
Percentage of Net Assets
Qty
Value
Percentage of Change with last month NA
Finance Oil & Gas, Petroleum & Refinery Finance Banks Electricals & Electrical Equipments Engineering & Industrial Machinery Finance Finance Computers Software & Education Banks
NA
7.62
64
64.42
13.93
5.53
240,000
46.78
-8.76
NA 9.59 21.91
5.36 4.98 4.39
45 287,616 233,144
45.30 42.09 37.10
NA 4.24 -6.82
Larsen & Toubro Limited Housing Development Finance Corporation Ltd Housing Development Finance Corporation Ltd Infosys Technologies Ltd UTI Bank Ltd
19.55 20.61 20.61 15.92 14.41
4.34 2.78 2.72 2.57 2.56
150,000 275 107,374 155,309 300,000
36.70 23.48 23.02 21.71 21.61
-5.67 -6.69 -8.52 -20.08 -0.42
Asset Allocation (%):Equity 58.37 Debt 21.26 Cash & Equivalent 20.37
Increase/Decrease in Fund Size since Sep 30, 2008 (Rs. in crores) Mutual Fund
-139.97 UTI Mutual Fund UTI Tower , Gn Block Bandra Kurla Complex, Bandra (E) Mumbai Tel.-26520850 ,56786666 UTI Asset Management Company Ltd. UTI Towers, GN Bloack Bandra Kurla Complex, Bandra (E) Mumbai - 400051 Tel.- 6678 6666 Karvy Computershare Pvt. Ltd. 21, Avenue 4, Street No 1, Banjara Hills Hyderbad
Asset Management Company
Registrar
Fund Features:
60
Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load
14 % as on Jun 30, 1999 1000 Daily Daily Amount Bet. 0 to 19999999 then Entry load is 2.25%. and Amount greater than 20000000 then Entry load is 0%. If redeemed bet. 0 Days to 180 Days; and Amount Bet. 0 to 19999999 then Exit load is 1%. If redeemed bet. 0 Days to 180 Days; and Amount greater than 20000000 then Exit load is 0.5%.
Exit Load
Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr.
Open Ended Equity & Debt Growth Dec 30, 1995 10 705.5 as on April 30, 2008
17. TATA BALANCED FUND – GROWTH
Objective:Aims to invest in equity and debt oriented securities so as to give investor balanced returns. SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month 0.99 3 Months -22.02 6 Months -28.81 1 Year -38.39 3 Years 9.04 5 Years 16.87 Since Inception 12.84
61
Top 10 Holdingsercentage of Net Assets 7.68 7.30 4.96 3.90 3.83 3.15 2.84 2.84 2.64 2.59 Percentage of Value Change with last month 15.00 14.27 9.70 7.61 7.47 6.14 5.55 5.55 5.16 5.07 NA -0.04 0.71 -15.89 29.80 20.18 0.25 40.40 2.57 1.22
Stock GOI
Sector Securities
P/E NA NA 8.03 NA 9.59 22.99 9.25 13.93 25.09 8.01
Qty NA NA NA NA 51,080 49,972 NA 28,456 204,432 49,014
Export-Import Bank of Finance India Ltd State Bank of Mysore Cash State Bank of India HDFC Bank Ltd Power Finance Corporation Ltd Reliance Industries Ltd Hindustan Lever Ltd Oil & Natural Gas Corpn Ltd Banks Current Assets Banks Banks Finance Oil & Gas, Petroleum & Refinery Diversified Oil & Gas, Petroleum & Refinery
Asset Allocation (%):Equity 72.30 Debt 25.88 Cash & Equivalent 1.82
Increase/Decrease in Fund Size since April 30, 2008 (Rs. in crores) Mutual Fund
-35.24 Tata Mutual Fund Mulla House, 4th Floor 51 M. G. Road. Mumbai Tel.-56315191 ,56315192 ,56315193 Tata Asset Management Private Limited Mulla House, Ground Floor, 51, M. G. Road, Fort Mumbai - 400001 Tel.- 66315191 Computer Age Management Services Private Limited A&B, Lakshmi Bhavan 609, Anna Salai Chennai
Asset Management Company
Registrar
62
Fund Features:Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Open Ended Equity & Debt Growth Oct 7, 1995 10 160.14 as on April 30, 2008
Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load
12.5 % as on Sep 10, 2003 5000 Daily Daily Amount Bet. 0 to 19999999 then Entry load is 2.25%. and Amount greater than 20000000 then Entry load is 0%. If redeemed bet. 0 Months to 6 Months; and Amount Bet. 0 to 19999999 then Exit load is 1%. and Amount greater than 20000000 then Exit load is 0%.
Exit Load
18. BARODA PIONEER BALANCE FUND – GROWTH
Objective:To generate long term capital appreciation along with stability through a well balanced portfolio of equity & debt instruments. SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month 1.09 3 Months -24.47 6 Months -25.45 1 Year -39.52 3 Years 2.58 5 Years 13.28 Since Inception 13.84
Top 10 Holdings:-
63
Stock Cash Siemens Ltd Larsen & Toubro Limited Ranbaxy Laboratories Ltd MIC Electronics Limited ITC Ltd Henkel SPIC India Ltd Reliance Communication Ventures Ltd. India Cements Ltd
Sector Current Assets Electronics Engineering & Industrial Machinery Pharmaceuticals Electricals & Electrical Equipments
Percentage P/E Qty of Net Assets NA 18.06 19.55 28.44 4.89 31.21 17.80 17.75 7.11 5.41 4.13 3.92 3.80 3.79 3.36 NA 2,370 499 1,000 2,987 1,597 NA 702 1,997 2,003
Value 0.23 0.13 0.13 0.05 0.04 0.03 0.03 0.03 0.03 0.02
Percentage of Change with last month 0.69 0.32 -0.10 0.18 20.99 -0.16 14.94 -14.20 3.34 -29.13
Tobacco & Pan Masala 18.62 Personal Care NA Telecom Cement 25.82 4.93 4.10
Hindalco Industries Ltd Metals
Asset Allocation (%):Equity 68.79 Debt 0.00 Cash & Equivalent 31.21
Increase/Decrease in Fund Size since March 31 , 2008 (Rs. in crores) Mutual Fund
0 BOB Mutual Fund 105, 10th Floor, Maker Chamber - III, Nariman Point Mumbai Tel.-22853323 ,22853326 Bank Of Baroda Asset Management Company Ltd 105, 10th Floor, Maker Chamber - III, Nariman Point Mumbai - 400023 Tel.- 22853323 Karvy Computershare Pvt. Ltd. 21, Avenue 4, Street No 1, Banjara Hills Hyderbad
Asset Management Company
Registrar
64
Fund Features:Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Exit Load NA 3000 Daily Daily Amount Bet. 0 to 2500000 then Entry load is 1.5%. and Amount Bet. 2500001 to 10000000 then Entry load is 1%. and Amount greater than 10000001 then Entry load is 0.5%. Exit Load is 0%. Open Ended Equity & Debt Growth Sep 3, 2003 10 0.73 as on April 30, 2008
19. ICICI PRUDENTIAL BALANCED – GROWTH
Objective:Aims to invest in equity and debt oriented securities so as to give investor balanced returns. SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month 3.42 3 Months -26.70 6 Months -33.19 1 Year -40.40 3 Years 1.44 5 Years 12.26 Since Inception 11.02
Top 10 Holdings:-
65
Stock
Sector
Percentage P/E of Net Assets 20.61 -0.94 -8.77 13.93 NA 10.78 19.55 16.53 11.00 10.38 7.30 5.53 3.49 3.06
Qty
Value
Percentage of Change with last month 370.38 NA 18.10 -6.93 -10.15 0.99 -17.75
Housing Development Finance Finance Corporation Ltd Indian Oil Corporation Ltd Spice Communications Ltd Reliance Industries Ltd Nifty ICICI BANK LTD. Larsen & Toubro Limited AIA Engineering Limited. ICICI BANK LTD. Bharti Airtel Ltd Oil & Gas, Petroleum & Refinery Telecom Oil & Gas, Petroleum & Refinery Miscellaneous Banks Engineering & Industrial Machinery Engineering & Industrial Machinery Banks Telecom
NA NA 3,700,000 101,988 NA NA 34,000
45.00 29.94 28.25 19.88 15.06 9.50 8.32
11.67 10.78 17.95
2.97 2.95 2.78
59,148 150,001 96,499
8.08 8.03 7.57
-12.99 -14.63 -14.71
Asset Allocation (%):Equity 62.77 Debt 29.61
-55.9 ICICI Prudential Mutual Fund 8th Floor, Peninsula Tower, Ganpatrao Kadam Marg, Off Senapati Bapat Marg, Lower Parel Mumbai Tel.-24997000 ,24999777 ICICI Prudential Asset Management Company Ltd. 8th Floor, Peninsula Tower Ganpatrao Kadam Marg, Lower Parel Mumbai - 400013 Tel.- 24997000 Computer Age Management Services Private Limited A&B, Lakshmi Bhavan 609, Anna Salai Chennai
Cash & Equivalent 7.62
Increase/Decrease in Fund Size since Sep 30, 2008 (Rs. in crores) Mutual Fund
Asset Management Company
Registrar
66
Fund Features:Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load NA 5000 Daily Daily Amount Bet. 0 to 49999999 then Entry load is 2.25%. and Amount greater than 50000000 then Entry load is 0%. If redeemed bet. 0 Months to 6 Months; and Amount Bet. 0 to 49999999 then Exit load is 1%. If redeemed bet. 6 Months to 12 Months; and Amount Bet. 0 to 49999999 then Exit load is 0.5%. and Amount greater than 50000000 then Exit load is 0%. Open Ended Equity & Debt Growth Oct 7, 1999 10 216.32 as on April 30, 2008
Exit Load
20. ESCORTS BALANCED FUND - GROWTH
Objective:Seeks to generate long term capital appreciation and current income from a well diversified portfolio of equity shares and fixed income securities. SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month 2.96 3 Months -20.69 6 Months -32.58 1 Year -44.75 3 Years 4.64 5 Years 14.30 Since Inception 19.19
Top 10 Holdings:-
67
Stock Current Assets Andhra Bank ICICI Ltd Bharat Heavy Electricals Ltd Larsen & Toubro Limited ICICI BANK LTD. Infrastructure Development Finance company Aban Offshore Ltd
Sector Current Assets Banks Finance Electricals & Electrical Equipments
Percentage P/E of Net Assets NA 4.01 NA 21.91 33.51 9.73 9.11 5.39 4.60 4.13 4.06
Qty NA NA NA 964 535 2,195 16,059
Value 0.95 0.28 0.26 0.15 0.13 0.12 0.12
Percentage of Change with last month 190.66 7.92 6.41 -2.95 -0.34 NA -13.41
Engineering & 19.55 Industrial Machinery Banks Finance Oil & Gas, Petroleum & Refinery Oil & Gas, Petroleum & Refinery Banks 10.78 10.14
12.42
3.86
535
0.11
4.88
Reliance Industries Ltd Punjab National Bank
13.93 5.75
3.67 3.15
535 1,886
0.10 0.09
-6.97 5.73
Asset Allocation:Equity 30.76 Debt 17.91 Cash & Equivalent 51.33
Increase/Decrease in Fund Size since Sep 30, 2008 (Rs. in crores) Mutual Fund
-0.49 Escorts Mutual Fund 11, Scindia House Connaught Circus New Delhi Tel.-23321654 ,51514100 , 32308046 Escorts Asset Management Ltd. 11, Scindia House Connaught Circus New Delhi - 110001 Tel.- 3321654 In-House - Escorts 11, Scindia House Connaught Circus New Delhi Tel.- , ,,
Asset Management Company
Registrar
68
Fund Features:Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Exit Load NA 1000 Daily Daily Entry Load is 2.25%. Exit Load is 0%. Open Ended Equity & Debt Growth Mar 20, 2001 10 2.36 as on April 30, 2008
21. JM BALANCED – GROWTH
Objective: Aims to provide investors with liquidity and current income along with capital appreciation. SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month -2.60 3 Months -33.85 6 Months -42.27 1 Year -52.36 3 Years -0.77 5 Years 6.73 Since Inception 8.52
Top 10 Holdings:
69
Stock Union Bank Of India Ltd Current Assets Banks
Sector
P/E 4.28 NA 22.33 10.78 4.89
Percentage of Net Assets 15.58 10.95 9.65 7.39 7.22
Qty NA NA 313,005 36,327 200,179
Value 4.10 2.88 2.54 1.95 1.90
Percentage of Change with last month 141.18 30.71 -12.13 -20.11 -4.26
Current Assets
Balrampur Chini Mills Sugar Ltd ICICI BANK LTD. MIC Electronics Limited 3 i Infotech Limited. Banks Electricals & Electrical Equipments
Computers Software & Education IVRCL Infrastructure Housing & & Projects Ltd. Construction Electricals & Bharat Heavy Electrical Electricals Ltd Equipments PSL Limited Bharti Airtel Ltd Steel Telecom
3.88 4.75 21.91 4.90 17.95
6.79 6.74 5.86 5.04 4.47
260,000 76,002 9,700 60,000 15,000
1.79 1.78 1.54 1.33 1.18
-38.80 -23.61 -7.04 -29.93 -6.07
Asset Allocation (%):Equity 47.31 Debt 25.14 Cash & Equivalent 27.55
Increase/Decrease in Fund Size since April 30, 2008 (Rs. in crores) Mutual Fund
-6.82 JM Financial Mutual Fund 5th Floor, A Wing , Laxmi Tower Bandra Kurla Complex. Mumbai Tel.-39877777 JM Financial Asset Management Private Ltd. 5th Floor, A Wing , Laxmi Tower Bandra Kurla Complex. Mumbai - 400051 Tel.- 39877777 Karvy Computershare Pvt. Ltd. 21, Avenue 4, Street No 1, Banjara Hills Hyderbad
Asset Management Company
Registrar
Fund Features:-
70
Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load
40 % as on Dec 20, 2003 1000 Daily Daily Amount Bet. 0 to 29999999 then Entry load is 2.25%. and Amount greater than 30000000 then Entry load is 0%. If redeemed bet. 0 Days to 1 Year; Exit load is 0.5%. If redeemed bet. 0 Days to 91 Days; and Amount greater than 30000000 then Exit load is 0.5%.
Exit Load
CHAPTER: 4 – ANALYSIS & OBSERVATIONS
71
In this chapter, performance evaluation of the various equity balanced Mutual Funds is listed. The Mutual Funds Schemes have been chosen on the basis of their returns over the period of one year from 1st May 2007 to 30th April 2008. Two types of techniques are used for evaluation of performance of the Mutual Funds Schemes such as Return Risk Ratio and Single Index Model. The Mutual Funds Schemes chosen are:
1. Birla Sun Life 95 - Growth 2. HDFC Prudence Fund – Growth 3. UTI Balanced Fund – Growth 4. Tata Balanced Fund – Growth 5. Escorts Balanced Fund – Growth 6. LIC Balanced – Plan C (Growth) 7. DSP Merrill Lynch Balanced Fund – Growth 8. Canara Robeco Balanced – Growth 9. SBI Magnum Balanced Fund – Growth 10. Franklin Templeton India Balanced Fund – Growth 11. ICICI Prudential Balanced Fund – Growth 12. Sundaram BNP Paribas Balanced Fund – Growth 13. HDFC Balanced Fund – Growth
72
14. Brila Sun Life Balanced Fund – Growth 15. Escorts Opportunities Fund – Growth 16. Baroda Pioneer Balanced Fund – Growth 17. JM Balanced – Growth 18. Kotak Balance – Growth 19. PRINCIPAL Balanced Fund – Growth 20. ING Balanced Fund - Growth 21. Reliance Regular Savings Fund – Balanced - Growth
Table No: 1 Return Risk Ratio:
No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Growth Kotak Balance - Growth 0.18226 -0.00021 1.99621 1.77355 10.95254 -8445.476 Growth PRINCIPAL Balanced Fund - Growth DSP Merrill Lynch Balanced Fund - Growth Reliance Regular Savings Fund - Balanced 0.10094 0.0891 0.10478 1.53661 1.33089 1.42076 15.223004 14.937037 13.559458 Growth ICICI Prudential Balanced - Growth Baroda Pioneer Balance Fund - Growth Escorts Opportunities Fund - Growth UTI Balanced Fund - Growth Escorts Balanced Fund - Growth HDFC Prudence Fund - Growth Tata Balanced Fund - Growth Canara Robeco Balance - Growth HDFC BalancedFund - Growth SBI Magnum Balanced Fund -Growth ING Balanced Fund - Growth LIC Balanced - Plan C (Growth) Birla Sun Life 95 - Growth Sundaram BNP Paribas Balanced Fund 0.04927 0.05433 0.06444 0.04919 0.06756 0.08676 0.06567 0.08148 0.08785 0.06918 0.07965 0.08176 0.11748 0.07574 1.37617 1.48444 1.58192 1.14429 1.37035 1.75944 1.24916 1.48446 1.58658 1.22517 1.39694 1.40796 1.94447 1.21678 27.931195 27.322658 24.548727 23.262655 20.283452 20.279391 19.021776 18.218704 18.060102 17.709887 17.538481 17.220646 16.551498 16.065223 Scheme Name Birla Sun Life Balanced Fund - Growth JM Balanced - Growth Franklin Templeton India Balanced Fund Return 0.05694 0.04965 Risk 1.77197 1.51488 RRR 31.119951 30.511178
73
Table No: 1.1
Part – A (Higher Return)
No 1 2 3 4 Scheme Name Birla Sun Life Balanced Fund - Growth JM Balanced - Growth Franklin Templeton India Balanced Fund - Growth ICICI Prudential Balanced - Growth Return 0.05694 0.04965 0.04927 0.05433 Risk 1.77197 1.51488 1.37617 1.48444 RRR 31.119951 30.511178 27.931195 27.322658
The above table indicates the Return Risk Ratio of the fund which was chosen for this study. Of the 21 funds, Birla Sun Life Balanced Fund, JM Balanced, Franklin Templeton India Balanced Fund, ICICI Prudential Balanced give higher returns i.e. more than 25% of the RRR. By choosing these type of funds, investor can obtain maximum return with minimum risk. Table No: 1.2 Part – B (Normal Return)
No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Scheme Name Baroda Pioneer Balance Fund - Growth Escorts Opportunities Fund - Growth UTI Balanced Fund - Growth Escorts Balanced Fund - Growth HDFC Prudence Fund - Growth Tata Balanced Fund - Growth Canara Robeco Balance - Growth HDFC BalancedFund - Growth SBI Magnum Balanced Fund -Growth ING Balanced Fund - Growth LIC Balanced - Plan C (Growth) Birla Sun Life 95 - Growth Sundaram BNP Paribas Balanced Fund - Growth PRINCIPAL Balanced Fund - Growth DSP Merrill Lynch Balanced Fund - Growth Reliance Regular Savings Fund - Balanced - Growth Return 0.06444 0.04919 0.06756 0.08676 0.06567 0.08148 0.08785 0.06918 0.07965 0.08176 0.11748 0.07574 0.10094 0.0891 0.10478 0.18226 Risk 1.58192 1.14429 1.37035 1.75944 1.24916 1.48446 1.58658 1.22517 1.39694 1.40796 1.94447 1.21678 1.53661 1.33089 1.42076 1.99621 RRR 24.548727 23.262655 20.283452 20.279391 19.021776 18.218704 18.060102 17.709887 17.538481 17.220646 16.551498 16.065223 15.223004 14.937037 13.559458 10.95254
The above table indicates the performance evaluation of Mutual Funds Schemes under Return Risk Ratio Method. Under this method, schemes which are given in the Part B table, represents Normal return giving Mutual Funds Schemes. These kinds of schemes are suitable for investor those are risk averse. Price fluctuations of these funds are low. Table No: 1.3
74
Part – C (Low Return)
No 1 Scheme Name Kotak Balance - Growth Return -0.00021 Risk 1.77355 RRR -8445.476
The above table indicates Mutual Funds Schemes with negative Return Risk Ratio or less than normal Return Risk Ratio. So, investors are advised not to invest in these types of Mutual Funds Schemes. Return Ratio is one of the important techniques in which investor can analyse the risk and return of individual return. By which investor can choose the best securities and best portfolio. Return Risk helps to investors to analyse and invest in the best portfolio.
Table No: 2
SINGLE INDEX
Security No 1 2 3 4 5 Mean Return 4.14 2.58 2.32 2.05 1.56 Excess Return 3.94 2.38 2.12 1.85 1.36 Unsystematic Excess Beta Risk 1.06 1.03 0.71 0.96 0.76 2.6569 0.0196 0.4225 0.0441 0.0484 Return Beta 3.716981132 2.310679612 2.985915493 1.927083333 1.789473684
75
6 1.83 7 1.8 8 1.8 9 1.77 10 1.63 11 1.56 12 1.53 13 1.48 14 1.47 15 1.33 16 1.3 17 1.25 18 1.22 19 1.16 20 1.11 21 0.24 Assumed Rf = 2%
1.63 1.6 1.6 1.57 1.43 1.36 1.33 1.28 1.27 1.13 1.1 1.05 1.02 0.96 0.91 0.04
0.77 0.65 0.74 0.8 0.72 0.91 0.55 0.71 0.66 0.82 0.56 0.8 0.73 0.56 0.69 0.87
0.000009 0.0729 0.0025 0.0121 0.0049 0.36 0.0484 0.0361 0.0081 0.3721 0.0016 0.3249 0.2704 0.0256 0.2704 3.3489
2.116883117 2.461538462 2.162162162 1.9625 1.986111111 1.494505495 2.418181818 1.802816901 1.924242424 1.37804878 1.964285714 1.3125 1.397260274 1.714285714 1.31884058 0.045977011
Table No: 2.1
Calculation of ‘C’ value
76
Excess Security Return Beta (RiRf)?iM/?²ei ?²iM/?²ei ?i=1(?²iM/?²ei) ?i=1(?²iM/?²ei) 3.71698113 42.28988 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 2 2.31067961 2 2.98591549 3 1.92708333 3 1.78947368 4 2.11688311 7 2.46153846 2 2.16216216 2 1.9625 1.98611111 1 1.49450549 5 2.41818181 8 1.80281690 1 1.92424242 4 1.37804878 1.96428571 4 1.3125 1.39726027 4 1.71428571 4 1.31884058 0.04597701 1 1.57190711 125.0714286 3.56260355 40.27210884 21.3553719 139455.5556 14.26611797 473.6 103.8016529 210.122449 3.437777778 15.11363636 25.17451524 103.4814815 2.490190809 385 2.585410896 2.753698225 21 2.322115385 0.010391472 7 5412.755 1 119.3136 1 2089.795 9 1193.388 4 6587777. 8 579.5610 4 21904 5289.256 2 10579.59 2 230.0277 8 625 1396.398 9 5377.777 8 180.7041 1 19600 196.9836 9 197.0784 1225 176.0724 77 9 22.60145 1 1.57190711 126.6433357 130.2059392 170.4780481 191.83342 139647.389 139661.6551 140135.2551 140239.0567 140449.1792 140452.617 141077.617 141102.7915 141206.273 141208.7632 141593.7632 141596.3486 141599.1023 141620.1023 141622.4244 141622.4348 42.28988671 5455.044989 5574.358598 7664.154517 8857.542946 6596635.321 6597214.882 6619118.882 6624408.138 6634987.73 6635217.758 6635842.758 6637239.156 6642616.934 6642797.638 6662397.638 6662594.622 6662791.7 6664016.7 6664192.773 6664215.374 C 0.0369348 0.023214 0.0233566 0.022242 0.0216563 0.0211695 0.0211698 0.0211713 0.02117 0.021168 0.0211677 0.0212599 0.0212593 0.0212576 0.0212574 0.0212527 0.0212524 0.0212522 0.0212515 0.0212512 0.0212511
Formula a used to determine ‘C’ value is ci=(?²M?i=1(?i-Rf )*?iM/?²ei)/(1+?²M?i=1(?²iM/?²ei))
Table No: 2.2 Calculation ‘Z’ value for determining Single Index Z 1.4681956 7 119.48760 8 4.9556834 6 41.146089 6 27.519204 9 177951.13 21.618550 8 629.06728 6 127.31009 3 286.40957 4 3.6844147 27.059624 7 34.730644 4 153.78061 8 2.9554244 3 674.57280 5 X 0.00081 Reliance Regular Savings Fund - Balanced 5 Growth 0.06632 5 LIC Balanced - Plan C (Growth) 0.00275 1 DSP Merrill Lynch Balanced Fund - Growth 0.02283 9 Escorts Balanced Fund - Growth 0.01527 5 PRINCIPAL Balanced Fund - Growth 0.09872 Tata Balanced Fund - Growth 0.012 Birla Sun Life 95 - Growth 0.34918 4 ING Balanced Fund - Growth 0.07066 7 SBI Magnum Balanced Fund - Growth 0.15898 Sundaram BNP Paribas Balanced Fund 1 Growth 0.00204 5 Baroda Pioneer Balance Fund - Growth 0.01502 HDFC Balanced Fund - Growth 0.01927 8 UTI Balanced Fund - Growth 0.08536 1 HDFC Prudence Fund - Growth 0.00164 1 Canara Robeco Balance - Growth 0.37444 3 Birla Sun Life Balance Fund - Growth 78
0.00174 3.1408191 3.6724762 36.692050 3 3.2711352 0.0023490 4
?Z = 180153.675 Formula used for determining ‘Z’ is Z = ?im/?²ei [ (( ? - T ) / ?im ) - C ]
3 JM Balanced - Growth 0.00203 9 ICICI Prudential Balanced - Growth 0.02036 7 Escorts Opportunities Fund - Growth 0.00181 Franklin Templeton India Balanced Fund 6 Growth 1.3E-06 Kotak Balance - Growth
Table No: 2.2.1 Part – A (Higher Return) No 1 2 3 Scheme Name Birla Sun Life Balance Fund - Growth ING Balanced Fund - Growth Sundaram BNP Paribas Balanced Fund - Growth X 0.374443 0.349184 0.158981
The above table indicates the optimum portfolio of the Mutual Funds Schemes under Single Index Model. The above Mutual Funds Schemes represents higher return giving schemes with minimum risk. Investor can obtain maximum return through this Mutual Funds Schemes.
Table No: 2.2.2 Part – B (Normal Return) No 1 2 3 4 5 Scheme Name Tata Balanced Fund - Growth HDFC Prudence Fund - Growth SBI Magnum Balanced Fund - Growth LIC Balanced - Plan C (Growth) Escorts Balanced Fund - Growth X 0.09872 0.085361 0.070667 0.066325 0.022839
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6 7 8 9 10
Escorts Opportunities Fund - Growth UTI Balanced Fund - Growth PRINCIPAL Balanced Fund - Growth HDFC Balanced Fund - Growth Birla Sun Life 95 - Growth
0.020367 0.019278 0.015275 0.01502 0.012
The above table indicates the normal return giving portfolio under Single Index Model. These types of portfolios give moderate return with normal risk. Before investing these types of fund, investor should analyse the market situation and present position of the market conditions.
Table No: 2.2.3 Part – C (Low Return) No 1 2 3 4 5 6 7 8 Scheme Name DSP Merrill Lynch Balanced Fund - Growth Baroda Pioneer Balance Fund - Growth ICICI Prudential Balanced - Growth Franklin Templeton India Balanced Fund - Growth JM Balanced - Growth Canara Robeco Balance - Growth Reliance Regular Savings Fund - Balanced - Growth Kotak Balance - Growth X 0.002751 0.002045 0.002039 0.001816 0.001743 0.001641 0.000815 -0.00001
The above table shows the low return giving securities. Investor should avoid these types of investment. Past performances of these funds are not giving considerable returns. So investor should be very careful with these funds.
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CONCLUSION
Before investing into the investment, selection of best and optimum portfolio and securities is the essential. Because, return is the greatest reward for selecting the best and optimum portfolio, and securities. So, analysis of the securities and portfolio is essential which helps to the investors to select the best and optimum portfolio and securities. For analysis of the securities and portfolio, investors are using different types of techniques for evaluating the performances of different portfolios and securities. Return Risk Ratio and Single Index Model are the important techniques for determination of Return and Risk of the individual securities and portfolio. Mutual Funds is one of the best method for investment for obtaining maximum return through diversification of the risk into various securities. Return Risk Ratio and Single Index Model helps to the investor to evaluate the performance of the different Mutual Funds Schemes, which classifies the Higher, Normal and Low return-giving portfolio. From which investor can select the best and optimum portfolio so that investors can obtain maximum return with bearable risk.
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BIBLIOGRAPHY:
Websites:
1) Mutualfundsindia.com 2) www.bseindia.com 3) www.moneycontrol.com 4) www.google.co.in 5) www.capitalmarket.com 6) www.indiainfoline.com 7) www.yahoofinance.com 8) www.afiindia.com Books:“Investment Management” by “B.K. Bhalla” “Portfolio and Security Analysis” by “Punithavathy Pandian” “Securities Analysis and Portfolio Management” by “V.A. Avadhani”
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doc_162337363.doc
Mutual Funds is one of the best method for investment for obtaining maximum return through diversification of the risk into various securities. Return Risk Ratio and Single Index Model helps to the investor to evaluate the performance of the different Mutual Funds Schemes, which classifies the Higher, Normal and Low return-giving portfolio. From which investor can select the best and optimum portfolio so that investors can obtain maximum return with bearable risk
A STUDY ON PERFORMANCE OF THE EQUITY BALANCED FUND IN INDIA
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CONTENTS
• EXECUTIVE 7 SUMMARY
• CHAPTER 8 ? Mutual 9 ? Investment 10 ? Investment 13 ? Types 19 ? Advantages 22 ? Disadvantages of MF of MF of MF Alternatives in India Avenues in India Funds –Concepts 1 INTRODUCTION
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24 • CHAPTER 2 – DESIGN OF THE STUDY 26 ? OBJECTIVES 27 ? SCOPE OF THE STUDY 27 ? Period of the Study 27 ? Methodology 27 • CHAPTER 3 – THE STUDY 30 • CHAPTER 4 – ANALYSIS AND OBSERVATIONS 73 • CONCLUSION 83 • BIBLIOGRAPHY
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EXECUTIVE SUMMARY
Each investment alternative has its own strengths and weaknesses. Some options seek to achieve superior returns (like equity), but with corresponding higher risk. Other provide safety and liquidity (like PPF, FD, etc.) but at the cost of return. Mutual funds seek to combine the advantages of investing in arch of these alternatives while dispensing with the shortcomings. Indian stock market is semi-efficient by nature and, is considered as one of the most respected stock markets, where information is quickly and widely disseminated, thereby allowing each security’s price to adjust rapidly in an unbiased manner to new information so that, it reflects the nearest investment value. And mainly after the introduction of electronic trading system, the information flow has become much faster. But sometimes, in developing countries like India, sentiments play major role in price movements, or say, fluctuations, where investors find it difficult to predict the future with certainty. Some of the events affect economy as a whole, while some events are sector specific. Even in one particular sector, some companies or major market player are more sensitive to the event. So, the new investors taking exposure in the market should be well aware about the maximum potential loss, i.e. Value at risk. It would be good to diversify one’s portfolio to include equity mutual funds and stocks. The benefit of diversification are that while risk exposure from a particular asset may not be very high, it would also give the opportunity of participating in the party in the equity markets- which may have just begun- in a relatively safe manner(than investing directly into stock markets). Mutual funds are one of the best options for investors to choose from. It must be realized that the performance of different funds varies time to time. Evaluation of a fund performance is meaningful when a fund has access to an array of investment products in market. An investor can choose from a variety of funds to suit his risk tolerance, investment horizon and objective. Direct investment in equity offers capital growth but at high risk and without the benefit of diversification by professional management offered by mutual funds.
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CHAPTER: 1 - INTRODUCTION
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India presents a vast potential for investment and is actively encouraging the players especially entrance of foreign players into the market. India is also one of the few markets in the world which offers high prospects for growth and earning potential in all areas of business. In the current market scenario where there is more expenditure than one’s salary, inflation touching its high and fixed deposits going down day by day, thus net rate of return on the investments being below the inflation rate. To meet these growing requirements, the investors need to invest his disposable income to reap short as well as long term benefits. Those who do make diverse investments are able to squeeze maximum benefits. The rationale behind undertaking this project is to understand the awareness and acceptance of various investment alternatives and to make a comparative study as which mode of equity investments are preferred by individuals. That is direct equity or the mutual funds. Mutual Funds – Concept: A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciations unrealized are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. The flow chart below describes broadly the working of a mutual fund.
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Mutual Fund Operation Flow Chart
INVESTMENT AVENUES IN INDIA:
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. Banks are considered as the safest of all options, banks have been the roots of the financial systems in India. Promoted as the means to social development, banks in India have indeed played an important role in the rural enlistment. For an ordinary person though, they have acted as the safest investment avenue wherein a person deposits money and earns interest on it. The two main modes of investment in banks, savings accounts and fixed deposits have been effectively used by one and all. However, today the interest rate structure in the country is headed southwards, keeping in line with global trends. With the banks offering little above 9 percent in their fixed deposits for one year, the yields have come down substantially in recent times. Add to this, the inflationary pressures in economy and one has a position where the savings are not earning. The inflation is creeping up, to almost 8 percent at times, and this means that the value of money saved goes down instead of going up. This effectively mars any chance of gaining from the investments in banks. Just like banks, post offices in India have a wide network. Spread across the nation, they offer financial assistance as well as serving the basic requirements of communication. Among all saving options, Post office schemes have been offering the highest rates. Added to it is the fact that the investments are safe with the department being a
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Government of India entity. So, the two basic and most sought after features, such as return safety and quantum of returns was being handsomely taken care of. Though certainly not the most efficient systems in terms of service standards and liquidity, these have still managed to attract the attention of small, retail investors. However, with the government announcing its intention of reducing the interest rates in small savings options, this avenue is expected to lose some of the investors. Public Provident Funds act as options to save for the post retirement period for most people and have been considered good option largely due to the fact that returns were higher than most other options and also helped people gain from tax benefits under various sections. This option too is likely to lose some of its sheen on account of reduction in the rates offered. Another often-used route to invest has been the fixed deposit schemes floated by companies. Companies have used fixed deposit schemes as a means of mobilizing funds for their operations and have paid interest on them. The safer a company is rated, the lesser the return offered has been the thumb rule. However, there are several potential roadblocks in these. First of all, the danger of financial position of the company not being understood by the investor lurks. The investors rely on intermediaries who more often than not, don’t reveal the entire truth. Secondly, liquidity is a major problem with the amount being received months after the due dates. Premature redemption is generally not entertained without cuts in the returns offered and though they present a reasonable option to counter interest rate risk (especially when the economy is headed for a low interest regime), the safety of principal amount has been found lacking. Many cases like the Kuber Group and DCM Group fiascoes have resulted in low confidence in this option. The options discussed above are essentially for the risk-averse, people who think of safety and then quantum of return, in that order. For the brave, it is dabbling in the stock market. Stock markets provide an option to invest in a high risk, high return game. While the potential return is much more than 10-11 percent any of the options discussed above can generally generate, the risk is undoubtedly of the highest order. But then, the general principle of encountering greater risks and uncertainty when one seeks higher returns holds true. However, as enticing as it might appear, people generally are clueless as to how the stock market functions and in the process can endanger the hard-earned money.
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For those who are not adept at understanding the stock market, the task of generating superior returns at similar levels of risk is arduous to say the least. This is where Mutual Funds come into picture. Mutual Funds are essentially investment vehicles where people with similar investment objective come together to pool their money and then invest accordingly. Each unit of any scheme represents the proportion of pool owned by the unit holder (investor). Appreciation or reduction in value of investments is reflected in net asset value (NAV) of the concerned scheme, which is declared by the fund from time to time. Mutual fund schemes are managed by respective Asset Management Companies (AMC). Different business groups/ financial institutions/ banks have sponsored these AMCs, either alone or in collaboration with reputed international firms. Several international funds like Alliance and Templeton are also operating independently in India. Many more international Mutual Fund giants are expected to come into Indian markets in the near future.
GROWTH IN ASSETS UNDER MANAGEMENT
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INVESTMENT ALTERNATIVES IN INDIA:• Non marketable financial assets: These are such financial assets which gives moderately high return but can not be traded in market. Bank Deposits Post Office Schemes Company FDs PPF
? ? ? ? •
Equity shares: These are shares of company and can be traded in secondary market. Investors get benefit by change in price of share and dividend given by companies. Equity shares represent ownership capital. As an equity shareholder, a person has an ownership stake in the company. This essentially means that the person has a residual interest in income and wealth of the company. These can be classified into following broad categories as per stock market: Blue chip shares Growth shares Income shares Cyclic shares Speculative shares
? ? ? ? ? •
Bonds: Bonds are the instruments that are considered as a relatively safer investment avenues. ? ? ? ? ? ? G sec bonds GOI relief funds Govt. agency funds PSU Bonds RBI BOND Debenture of private sector co.
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•
Money market instrument: By convention, the term "money market" refers to the market for short-term requirement and deployment of funds. Money market instruments are those instruments, which have a maturity period of less than one year. ? ? ? T-Bills Certificate of Deposit Commercial Paper
•
Mutual Funds- A mutual fund is a trust that pools together the savings of a number of investors who share a common financial goal. The fund manager invests this pool of money in securities, ranging the scheme. The different types of schemes are ? ? ? ? Balanced Funds Index Funds Sector Fund Equity Oriented Funds
•
Life insurance: Now-a-days life insurance is also being considered as an investment avenue. Insurance premiums represent the sacrifice and the assured sum the benefit. Under it different schemes are: ? ? ? ? Endowment assurance policy Money back policy Whole life policy Term assurance policy
•
Real estate: One of the most important assets in portfolio of investors is a residential house. In addition to a residential house, the more affluent investors are likely to be interested in the following types of real estate: ? ? ? Agricultural land Semi urban land Farm House
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•
Precious objects: Investors can also invest in the objects which have value. These comprises of: ? ? ? ? Gold Silver Precious stones Art objects
•
Financial Derivatives: These are such instruments which derive their value from some other underlying assets. It may be viewed as a side bet on the asset. The most important financial derivatives from the point of view of investors are: ? ? Options Futures
RISK HIERARCHY OF MUTUAL FUNDS
Money Market Funds Gilt Funds
Debt Funds
Equity Funds Hybrid Funds Aggressive Growth
Flexible Asset allocation Funds
Funds
Growth Funds
Risk
High Yield Debt Funds Diversified Equity Funds
Level
Index Funds
Focused Debt Funds
Value Funds Growth and Income funds Balanced Funds Equity Income Funds
Diversified Money Market Funds Gilt Funds Debt Funds
Type of Fund
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Snapshot of Mutual Fund Schemes
Mutual Fund Type
Objective
Risk
Investment Who should Portfolio invest Those who Treasury Bills, park their Certificate of funds in Deposits, current Commercial accounts or Papers, Call short-term Money bank deposits
Investment horizon
Liquidity + Moderate Money Income + Market Reservation of Capital Shortterm Funds (Floating - shortterm)
Negligible
2 days - 3 weeks
Liquidity + Moderate Income
Call Money, Commercial Papers, Little Treasury Bills, Interest Rate CDs, Shortterm Government securities.
Those with surplus short-term funds
3 weeks 3 months
Bond Funds (Floating - Longterm) Gilt Funds Equity Funds Regular Income
Predominantly Debentures, Credit Risk Salaried & Government & Interest conservative securities, Rate Risk investors Corporate Bonds Interest Rate Government Risk securities Salaried & conservative investors Aggressive investors with long term out look.
More than 9 - 12 months
Security & Income Long-term Capital Appreciation
12 months & more
High Risk
Stocks
3 years plus
Index Funds
To generate returns that Portfolio are NAV varies indices like commensurate with index BSE, NIFTY with returns of performance etc respective indices Growth & Regular Income
Aggressive investors.
3 years plus
Balanced Funds
Balanced ratio Capital of equity and Market Risk debt funds to Moderate & and Interest ensure higher Aggressive Rate Risk returns at lower risk
2 years plus
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EQUITY SHARE / DIRECT INVESTMENT:Equity shares: These are shares of company and can be traded in secondary market. Investors get benefit by change in price of share or dividend given by companies. Equity shares represent ownership capital. As an equity shareholder, a person has an ownership stake in the company. This essentially means that the person has a residual interest in income and wealth of the company. These can be classified into following broad categories as per stock market: Blue chip shares- Shares of large, well established, financially strong companies with an impressive record of earnings and dividends. ? Growth shares-Shares of companies that have fairly entrenched positions in a growing market and which enjoy an above average rate of growth as well as profitability. ? Income shares-Share of companies that have fairly stable operations, relative limited growth opportunities, and high dividend payout ratios. ? Cyclic shares – Share of companies that have a pronounced cyclicality in their operations. ? Defensive shares- Shares of companies that are relatively unaffected by the ups and downs in general business conditions. ? Speculative shares- Shares of companies that tend to fluctuate widely because there is a lot of speculative trading in them.
?
MUTUAL FUNDS - AN INTRODUCTION:A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is invested by the fund manager in different types of securities depending upon the objective of the scheme. These could range from shares to debentures to money market instruments. The income earned through these investments and the capital appreciations realized by the schemes are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it
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offers an opportunity to invest in a diversified, professionally managed portfolio at a relatively low cost. The small savings of all the investors are put together to increase the buying power and hire a professional manager to invest and monitor the money. Anybody with an investible surplus of as little as a few thousand rupees can invest in Mutual Funds. Each Mutual Fund scheme has a defined investment objective and strategy. INCEPTION OF MUTUAL FUNDS IN INDIA:The history of mutual funds in India can be divided into 5 important phases: 1963-1987 The Unit Trust of India was the sole player in the industry. Created by an Act of Parliament in 1963, UTI launched its first product, the Unit Scheme 1964, which is even today the single largest mutual fund scheme. UTI created a number of products such as monthly income plans, children plans, equity-oriented schemes and off shore funds during this period. UTI managed assets of Rs.6,700 crores at the end of this phase. 1987-1993 In 1987 public sector banks and financial institutions entered the mutual fund industry. SBI mutual fund was the first non- UTI fund to be set up in 1987. Significant shift of investors from deposits to mutual fund industry happened during this period. Most funds were growth-oriented closed-ended funds. By the end of this period, assets under UTI’s management grew to Rs.38,247 crores and public sector funds managed Rs.8,750 crores. 1993-1996 In 1993, the mutual fund industry was open to private sector players, both Indian and foreign. SEBI’s first set of regulations for the industry were formulated in 1993, and substantially revised in 1996.Signifficant innovations in servicing, product design and information disclosure happened in this phase, mostly initiated by private players. 1996-1999 The implementation of the new SEBI regulations and the restructuring of the mutual fund industry led to rapid asset growth. Bank mutual funds were recast according to
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the SEBI recommended structure, and the UTI came under voluntary SEBI supervision. 1999-2002 This phase was marked by the rapid growth in the industry, and significant increase in market shares of private sector players. Assets crossed Rs.1,00,000 crore .The tax break offered to mutual fund in 1999 created arbitrage opportunities for a number of institutional players. Bond funds and Liquid funds registered the highest growth in this period, accounting for nearly 60% of the assets. UTI’s share of the industry dropped to nearly 50%.
TYPES OF MUTUAL FUNDS:
Open ended schemes An open-end fund is one that is available for subscription all through the year. This type of Mutual funds does not have a predefined maturity period. The key feature is liquidity. Direct dealing is another noticeable feature. One can easily buy and sell units at Net Asset Value related prices. Close ended schemes Here maturity period is predefined usually ranging from 2 to 15 years. Investment can be done directly in the scheme at the time of the initial issue and units can be brought and sold whenever units are listed in the stock exchanges.
TYPES OF SCHEMES:1. Equity/growth oriented Funds: Equity schemes are those that invest predominantly in equity shares of companies. An equity scheme seeks to provide returns by way of capital appreciation. As a class of assets, equities are subject to greater fluctuations. Hence, the NAVs of these schemes will also fluctuate frequently. Equity schemes are more volatile, but offer better returns. 2. Income Funds: The aim of income funds is to provide regular and steady income to invest. Such schemes generally invest in fixed income securities
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such as bonds, corporate debentures and government securities. Income funds are ideal for capital stability and regular income. 3. Balanced Funds: The aim of balanced funds is to provide both growth and regular income. Such schemes periodically distribute a part of their earning and invest both in equities and fixed income securities in the proportion indicated in their offer documents. 4. Money Market Funds: The aim of money market fund is to proved easy liquidity, preservation of capital and moderate income these schemes generally invest in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money. Returns on these schemes may fluctuate depending upon the invest rates prevailing in the market. These are ideal for corporate and individual investors as a means to park their surplus funds for short periods. 5. Loan Fund: A loan fund is one that changes a commission for entry or exit. That is, each time you buy or sell units in the fund, a commission will be payable. Typically entry and exit loads range form 1% to 2%. It could be worth paying the load, if the fund has a good performance history. 6. No- Load Fund: A no-load fund is one that does not change a commission for entry or exit. That is, no commission is payable on purchase or sale of unit in the fund. The advantage of a no loan fund is that the entire corpus is put to work. Other Schemes: Tax-saving funds: Also known as ELSS or equity-linked savings schemes, these funds offer benefits under Section 88 of the Income-Tax Act. So, on an investment of up to Rs 10,000 a year in an ELSS, one can claim a tax exemption of 20 per cent from his taxable income. One can invest more than Rs 10,000, but then he won’t get the Section 88 benefits for the amount in excess of Rs 10,000. The only drawback to ELSS is that one has to lock into the scheme for three years.
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In terms of investment profile, tax-saving funds are like diversified funds. The one difference is that because of the three year lock-in clause, tax-saving funds get more time to reap the benefits from their stock picks, unlike plain diversified funds, whose portfolios sometimes tend to get dictated by redemption compulsions. SPECIAL SCHEMES 1) Industry specific schemes: Industry specific schemes invest only in the industries in the offer document. The investment of these funds is limited to specific industries Info tech, FMCG, and pharmaceuticals etc. 2) Index funds These funds track a key stock market index, like the BSE (Bombay Stock Exchange) Sensex or the NSE (National Stock Exchange) S&P CNX Nifty. Hence, their portfolio mirrors the index they track, both in terms of composition and the individual stock weightings. For instance, an index fund that tracks the Sensex will invest only in the Sensex stocks. The idea is to replicate the performance of the benchmarked index to near accuracy. Index funds don’t need fund managers, as there is no stock selection involved. Investing through index funds is a passive investment strategy, as a fund’s performance will invariably mimic the index concerned, barring a minor "tracking error". Usually, there’s a difference between the total returns given by a stock index and those given by index funds benchmarked to it. Termed as tracking error, it arises because the index fund charges management fees, marketing expenses and transaction costs (impact cost and brokerage) to its unit holders. So, if the Sensex appreciates 10 per cent during a particular period while an index fund mirroring the Sensex rises 9 per cent, the fund is said to have a tracking error of 1 per cent. To illustrate with an example, assume you invested Rs 1,000 in an index fund based on the Sensex on 1 April 1978, when the index was launched (base: 100). In August, when the Sensex was at 3.457, your investment would be worth Rs 34,570, which works out to an annualised return of 17.2 per cent. A tracking error of 1 per
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cent would bring down your annualised return to 16.2 per cent. Obviously, lower the tracking error, the better are the index funds.
3) Diversified funds Such funds have the mandate to invest in the entire universe of stocks. Although by definition, such funds are meant to have a diversified portfolio (spread across industries and companies), the stock selection is entirely the prerogative of the fund manager. This discretionary power in the hands of the fund manager can work both ways for an equity fund. On the one hand, astute stock-picking by a fund manager can enable the fund to deliver market-beating returns; on the other hand, if the fund manager’s picks languish, the returns will be far lower. Returns from a diversified fund depend a lot on the fund manager’s capabilities to make the right investment decisions. A portfolio concentrated in a few sectors or companies is a high risk, high return proposition. 4) Sector funds The riskiest among equity funds, sector funds invest only in stocks of a specific industry, say IT or FMCG. A sector fund’s NAV will zoom if the sector performs well; however, if the sector languishes, the scheme’s NAV too will stay depressed. Barring a few defensive, evergreen sectors like FMCG and pharmacy, most other industries alternate between periods of strong growth and bouts of slowdowns. The way to make money from sector funds is to catch these cycles– get in when the sector is poised for an upswing and exit before it slips back.
ADVANTAGES OF MUTUAL FUNDS:1. Professional Management Qualified professionals manage money, but they are not alone. They have a research team that continuously analyses the performance and prospects of companies. They also select suitable investments to achieve the objectives of the scheme, so you see that it is a continuous process that takes time and
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expertise that will add value to investment. These fund managers are in a better position to manage investments and get higher returns. 2. Diversification The cliché, "don’t put all eggs in one basket" really applies to the concept of intelligent investing. Diversification lowers risk of loss by spreading money across various industries. It is a rare occasion when all stocks decline at the same time and in the same proportion. Sector funds will spread investment across only one industry and it would not be wise for portfolio to be skewed towards these types of funds for obvious reasons. 3. Choice of Schemes Mutual funds offer a variety of schemes that will suit investors needs over a lifetime. When they enter a new stage in life, all needed to do is sit down with investment advisor who will help to rearrange portfolio to suit altered lifestyle. 4. Affordability A small investor may find that it is not possible to buy shares of larger corporations. Mutual funds generally buy and sell securities in large volumes that allow investors to benefit from lower trading costs. The smallest investor can get started on mutual funds because of the minimal investment requirements. One can invest with a minimum of Rs. 500 in a Systematic Investment Plan on a regular basis. 5. Tax Benefits Investments held by investors for a period of 12 months or more qualify for Capital gains and will be taxed accordingly (10% of the amount by which the investment appreciated, or 20% after factoring in the benefit of cost indexation, whichever is lower). These investments also get the benefit of indexation. 6. Liquidity With open-end funds, you can redeem all or part of investment any time you wish and receive the current value of the shares or the NAV related price. Funds are more liquid than most investments in shares, deposits and bonds and
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the process is standardized, making it quick and efficient so that you can get cash in hand as soon as possible. 7. Rupee Cost Averaging Through using this concept of investing the same amount regularly, mutual funds give investor the advantage of getting the average unit price over the long-term. This reduces risk and also allows you to discipline self by actually investing every month or quarterly and not making sporadic investments. 8. The Transparency of Mutual Funds The performance of a mutual fund is reviewed by various publications and rating agencies, making it easy for investors to compare one to the other. Once you are part of a mutual fund scheme, you are provided with regular updates, for example daily NAVs, as well as information on the specific investments made and the fund manager’s strategy and outlook of the scheme. Easy To Administer Mutual funds units in modern times are not issued in the form of certificates, with a minimum denomination rather they are issued as account statement switch a facility to hold units in fraction upto 4 decimal points. Highly Regulated The governing of mutual funds by SEBI ensures that the fund activities are carried out in the best interest of the investors. DISADVANTAGES OF MUTUAL FUNDS:The following are some of the reasons which are deterrent to mutual fund investment: • Costs despite Negative Returns — Investors must pay sales charges, annual fees, and other expenses regardless of how the fund performs. And, depending on the timing of their investment, investors may also have to pay taxes on any capital gains distribution they receive — even if the fund went on to perform poorly after they bought shares.
22
•
Lack of Control — Investors typically cannot ascertain the exact make-up of a fund's portfolio at any given time, nor can they directly influence which securities the fund manager buys and sells or the timing of those trades.
•
Price Uncertainty — with an individual stock, you can obtain real-time (or close to real-time) pricing information with relative ease by checking financial websites or by calling your broker. You can also monitor how a stock's price changes from hour to hour — or even second to second. By contrast, with a mutual fund, the price at which you purchase or redeem shares will typically depend on the fund's NAV, which the fund might not calculate until many hours after you've placed your order. In general, mutual funds must calculate their NAV at least once every business day, typically after the major U.S. exchanges close.
EQUITY SCHEMES:Equity schemes are those that invest predominantly in equity shares of companies. An equity scheme seeks to provide returns by way of capital appreciation. As a class of assets, equities are subject to greater fluctuations. Hence, the NAVs of these schemes will also fluctuate frequently. Equity schemes are more volatile, but offer better returns. These can be further classified into three types: 1. Diversified Equity schemes: The aim of diversified equity funds is to provide the investor with capital appreciation over a medium to long period (generally 2 – 5 years). The fund invests in equity shares of companies from a diverse array of industries and balances (or tries to) the portfolio so as to prevent any adverse impact on returns due to a downturn in one or two sectors. 2. Equity Linked Saving Schemes (ELSS): These schemes generally offer tax rebates to the investor under section 88 of the Income Tax law. These schemes generally diversify the equity risk by investing in a wider array of stocks across sectors. ELSS is usually considered a variant of diversified equity scheme but with a tax friendly offer
23
3. Sectoral Fund/ Industry Specific schemes: Industry Specific Schemes invest only in the industries specified in the offer document. The investment of these funds is limited to specific industries like InfoTech, FMCG, and Pharmaceuticals etc. These are ideal for investors who have already decided to invest in particular sector or segment. Sectoral Funds tend to have a very high risk-reward ratio and investors should be careful of putting all their eggs in one basket.
CHAPTER: 2 – DESIGN OF THE STUDY
24
OBJECTIVES:1. To analyse the risk and return of Mutual Funds schemes to invest on equity balanced fund – growth. 2. To rank the Mutual Funds schemes depends on the performance and to select the best Mutual Funds schemes.
SCOPE OF THE STUDY:This study was conducted to analyse the performance of the balanced Mutual Funds schemes. Selection of equity balance funds- growth are done here on the basis of their Return, Risk , Return Risk Ratio, Single Index method and performance over the years. Selection of Mutual Funds has been done on the basis of one year performance of the balanced fund from the period from 1st May 2007 to 30th April 2008. Risk Free Return is 2%. Also, 1. Only open ended funds are considered while choosing best equity balanced growth related Mutual Funds. 2. Among growth and balance schemes, only 21 balanced scheme has been taken for this study.
PERIOD OF THE STUDY:Selection of the Mutual Funds schemes was made for the period of one year performance of the Mutual Funds from 1st May 2007 to 30th April 2008.
25
METHODOLOGY:
Secondary data was collected from various sources such as internet and financial magazines. The methodology for evaluating portfolio performance balanced fund is based on the Single Index Model, which determines the best portfolio performance based on beta. In this study, the various tools are used for evaluating the performance of the selected schemes. They are. 1. Return 2. Risk 3. Beta
Techniques used: 1. Risk Return Ratio 2. Single Index Model
Return: The return has been computed taking monthly NAV for the period of one year from 1st May 2007 to 30th April 2008. The NAV is adjusted assuming that dividends are reinvested. The Returns are computed as follows: R = (NAV at the end of the Month – NAV at the beginning of the Month)/ NAV at the beginning of the Month X 100 Risk: Two main measures of risk have been used in the study. 1. Standard Deviation (?) 2. Beta (?) Standard Deviation:Standard Deviation of monthly returns is taken as total risk. This measure reflects the degree to which return fluctuate around their average. Standard deviation is calculated as follows.
SD = [1/n*?(R-O)²]½
26
Beta:Market risk is commonly measured by the beta coefficient BETA relates the return on a stock or mutual funds to a market index. Beta reflects the sensitivity of the funds return to fluctuations in the market index. Beta is measured as follows. ? = N(?xy - ?x. ?y) / N(?x2 – (?x)2)
ci=(?²M?i=1(?i-Rf )*?iM/?²ei)/(1+?²M?i=1(?²iM/?²ei))
Return Risk Ratio: Return Risk Ratio is measured by dividing the highest return with lowest risk.
27
CHAPTER: 3 – THE STUDY
28
EQUITY BALANCE FUNDS- GROWTH
21 Mutual Funds schemes performance has been taken for the purpose of analysis of this study. They are
1. BIRLA SUN LIFE BALANCE FUND - GROWTH
Objective: The Scheme aims to balance income requirements with growth of capital through balanced mix of investment in equity and debt. SCHEME PERFORMANCE (%) AS ON APR 30, 2008
1 Month 0.92 3 Months -16.08 6 Months -20.17 1 Year -23.60 3 Years 6.90 5 Years 13.32 Since Inception 10.71
Top 10 Holdings:
29
Stock
Sector
P/E
Percentage of Net Assets
Qty
Value
Percentage of Change with last month 15.14 -0.21 24.69 -0.32 -13.21 NA -10.82 -3.32 NA
Cash Citibank GOI ITC Ltd EID Parry (India) Ltd
Current Assets Banks Securities Tobacco & Pan Masala Sugar
NA NA NA 18.62 127.03 7.79 8.30 17.54 9.25
8.72 7.58 5.88 5.55 5.50 5.36 4.38 3.84 3.24
NA NA NA 274,927 259,474 NA 155,062 63,596 NA
8.13 7.07 5.48 5.17 5.13 5.00 4.08 3.58 3.02
Industrial Development Banks Bank of India Ltd Novartis India Ltd Pfizer Ltd Power Finance Corporation Ltd Pharmaceuticals Pharmaceuticals Finance
Oil & Gas, Reliance Industries Ltd Petroleum & Refinery
Increase/Decrease in Fund Size since April 30, 2008 (Rs. in corers) Mutual Fund
13.93
3.13
14,977
2.92
-8.90
-11.6 Birla Mutual Fund Ahura Centre , 2nd Floor, A. 96/A-D, Mahakali Caves Road, Andheri (E) Mumbai Tel.-56928000 Birla Sunlife Asset Management Company Ltd. 2nd Floor, Tower B Ahura Centre, 96 A D, Mahakali Caves Road, Andheri(E) Mumbai - 400093 Tel.- 56928000 Computer Age Management Services Private Limited A&B, Lakshmi Bhavan 609, Anna Salai Chennai
Asset Management Company
Registrar
Fund Features:
30
Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Exit Load NA 5000 Daily Daily Nil
Open Ended Equity & Debt Growth Oct 4, 1999 10 81.61 as on April, 2008
If redeemed bet. 0 Months to 12 Months; and Amount Bet. 0 to 49999999 then Exit load is 1%. and Amount greater than 50000000 then Exit load is 0%.
Asset Allocation (%):
Equity 55.44 Debt 23.12 Cash & Equivalent 21.44
2. DSP BLACKROCK BALANCED FUND - GROWTH
Objective: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. SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month -2.07 3 Months -20.15 6 Months -24.76 1 Year -27.52 3 Years 12.11 5 Years 18.49 Since Inception 14.84
Top 10 Holdings:-
31
Stock
Sector
P/E
Percentag e of Net Assets
Qty
Value
Percentage of Change with last month
Industrial Development Bank of Banks India Ltd LIC Housing Finance Finance Ltd Hindustan Lever Ltd Oil & Natural Gas Corpn Ltd Diversified Oil & Gas, Petroleum & Refinery
7.79 3.60 25.09 8.01 6.01 17.95 NA 15.92 22.99
11.41 5.17 3.72 3.06 2.74 2.54 2.20 1.83 1.63
600 25 775,204 155,851 150 170,244 NA 69,030 69,687
60.00 27.17 19.55 16.12 14.39 13.36 11.57 9.65 8.57
NA -0.17 0.68 482.79 -25.05 -29.63 122.62 -47.18 118.41
Shriram Transport Finance Finance Company Ltd Bharti Airtel Ltd CBLO Infosys Technologies Ltd HDFC Bank Ltd Telecom Current Assets Computers Software & Education Banks
Asset Allocation (%):Equity 60.19 Debt 37.05
-87.72 DSP Blackrock Mutual Fund Tulsiani Chambers, West Wing, 11th Floor, Nariman Point Mumbai Tel.-56578000 DSP Blackrock Fund Managers Tulsiani Chambers, West Wing, 11th Floor, Nariman Point Mumbai - 400021 Tel.- 66578000 Computer Age Management Services Private Limited A&B, Lakshmi Bhavan 609, Anna Salai Chennai
Cash & Equivalent 2.76
Increase/Decrease in Fund Size since April 30, 2008 (Rs. in crores) Mutual Fund
Asset Management Company
Registrar
Fund Features:
32
Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr.
Open Ended Equity & Debt Growth May 14, 1999 10 438.24 as on April 30 , 2008
Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Exit Load
NA 5000 Daily Daily Entry Load is 1%. If redeemed bet. 0 Months to 12 Months; Exit load is 1.25%.
3. HDFC BALANCED FUND – GROWTH
Objectives: 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. SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month -1.96 3 Months -21.07 6 Months -24.56 1 Year -27.90 3 Years 4.69 5 Years 12.22 Since Inception 12.90
33
Top 10 Holdings:
Percentage of Net Assets 5.99 5.46 4.94 4.91 4.65 4.49 4.41 4.07 3.91 3.83 Percentage of Value Change with last month 6.04 5.51 4.99 4.96 4.70 4.53 4.45 4.11 3.94 3.87 -8.79 -27.23 NA NA 0.11 1.05 0.75 -4.22 -0.11 2,327.85
Stock Reliance Industries Ltd
Sector
P/E
Qty 31,000 380,000 50 50 50 8 30,000 200,000 4 NA
Oil & Gas, Petroleum 13.93 & Refinery Coromandel Fertilisers Fertilizers, Pesticides 5.75 Ltd & Agrochemicals Power Finance Finance 9.25 Corporation Ltd L & T Finance Ltd Finance NA Housing Development Finance Corporation Ltd Grasim Industries Ltd Sun Pharmaceuticals Industries Ltd Federal Bank Ltd Shriram Transport Finance Company Ltd Reverse Repo Finance Cement Pharmaceuticals Banks Finance Current Assets 20.61 4.47 19.75 5.65 6.01 NA
Asset Allocation (%): Equity 69.30 Debt 29.95 Cash & Equivalent 0.75
Increase/Decrease in Fund Size since April 30, 2008 (Rs. in crores) Mutual Fund
-19.05 HDFC Mutual Fund Ramon House, 3rd Floor, H.T. Parekh Marg 169, Backbay Reclamation, Churchgate Mumbai Tel.-22029111 ,56316333 HDFC Asset Management Company Limited Ramon House, 3rd Floor, H.T. Parekh Marg 169, Backbay Reclamation, Churchgate Mumbai - 400020 Tel.- 22029111 Computer Age Management Services
Asset Management Company
Registrar
34
Private Limited A&B, Lakshmi Bhavan 609, Anna Salai Chennai
Fund Features:
Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Open Ended Equity & Debt Growth Aug 10, 2000 10 81.87 as on 30, 2008
Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Exit Load
NA 5000 Daily Daily Nil If redeemed bet. 0 Year to 1 Year; and Amount Bet. 0 to 49999999 then Exit load is 1%. and Amount greater than 50000000 then Exit load is 0%.
4. ESCORTS OPPORTUNITIES FUND – GROWTH
Objective: To generate long term capital appreciation by predominantly moving investments in a portfolio of equity and equity related securities SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month 0.01 3 Months -14.85 6 Months -20.27 1 Year -29.13 3 Years 3.16 5 Years 8.10 Since Inception 11.29
Top 10 Holdings:
35
Stock Current Assets
Sector
Percentage P/E of Net Assets 13.30 4.43 4.42
Qty NA 29,604 45,431
Value 21.75 7.24 7.23
Percentage of Change with last month -13.82 1.23 0.20
Current Assets NA Engineering & Larsen & Toubro Limited 19.55 Industrial Machinery Electricals & Bharat Heavy Electricals Electrical 21.91 Ltd Equipments Infrastructure Development Finance company ICICI BANK LTD. Finance Banks 10.14 10.78 17.95 2.25 10.78 NA NA
4.11 3.81 3.78 3.52 3.29 3.17 3.07
935,096 116,312 78,873 NA NA NA NA
6.72 6.23 6.19 5.76 5.38 5.18 5.03
11.47 94.91 NA 7.06 68.32 7.33 7.39
Bharti Airtel Ltd Telecom First Leasing Company of Finance India Ltd ICICI BANK LTD. Banks NABARD ICICI Home Finance Co Ltd Finance Finance
Asset Allocation (%):Equity 27.16 Debt 31.78 Cash & Equivalent 41.06
Increase/Decrease in Fund Size since April 30, 2008 (Rs. in crores) Mutual Fund
-10.8 Escorts Mutual Fund 11, Scindia House Connaught Circus New Delhi Tel.-23321654 ,51514100 , 32308046 Escorts Asset Management Ltd. 11, Scindia House Connaught Circus New Delhi - 110001 Tel.- 3321654 In-House - Escorts 11, Scindia House Connaught Circus New Delhi.
Asset Management Company
Registrar
Fund Features:
36
Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Exit Load NA 50000 Daily Weekly Entry Load is 0%.
Open Ended Equity & Debt Growth Feb 26, 2001 10 152.77 as on April 30 , 2008
If redeemed bet. 0 Months to 3 Months; Exit load is 0.75%. If redeemed bet. 3 Months to 6 Months; Exit load is 0.5%. If redeemed bet. 6 Months to 9 Months; Exit load is 0.25%.
5. RELIANCE REGULAR SAVINGS FUND - BALANCED – GROWTH
Objective: 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. SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month 6.54 3 Months -18.52 6 Months -21.95 1 Year -30.16 3 Years 3.10 5 Years NA Since Inception 2.9
Top 10 Holdings:
37
Stock Cash Reliance Communication Ventures Ltd. ICICI BANK LTD. Wipro Ltd Divis Laboratories Limited Sterlite Industries (India) Ltd Nagarjuna Construction Company Ltd United Phosphorus Limited (New) Oil & Natural Gas Corpn Ltd
Sector Current Assets Telecom Banks Computers - Software & Education Pharmaceuticals Metals Housing & Construction
P/E NA 25.82 10.78 13.14 17.54 14.07 8.28 26.03 8.01 13.93
Percentage of Net Assets 45.69 6.15 5.93 5.02 4.93 4.75 4.39 4.01 3.97 3.60
Qty NA 50,006 30,003 40,005 10,001 30,003 123,812 35,166 10,401 5,001
Percentage of Value Change with last month 12.38 1.67 1.61 1.36 1.34 1.29 1.19 1.09 1.08 0.97 1.20 -15.47 -20.12 -21.36 -12.20 2.77 -23.21 8.18 -29.63 -43.23
Fertilizers, Pesticides & Agrochemicals Oil & Gas, Petroleum & Refinery Oil & Gas, Petroleum Reliance Industries Ltd & Refinery
Asset Allocation (%):Equity 63.94 Debt 0.00
-3.69 Reliance Mutual Fund Kamala Mills Compound, Trade World, B - Wing 7th Floor, Senapati Bapat Marg, Lower parel (West) Mumbai Tel.-30414800 Reliance Capital Asset Management Ltd. Kamala Mills Compound, Trade World, B - Wing 7th Floor, Senapati bapat marg, Lower parel (West) Mumbai - 400013 Tel.- 30414800 Karvy Computershare Pvt. Ltd. 21, Avenue 4, Street No 1, Banjara Hills Hyderbad
Cash & Equivalent 36.06
Increase/Decrease in Fund Size since April 30, 2008 (Rs. in corers) Mutual Fund
Asset Management Company
Registrar
Fund Features: 38
Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr.
Open Ended Equity & Debt Growth May 10, 2005 10 23.41 as on April 30, 2008
Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load
NA 500 Daily Daily Amount Bet. 0 to 19999999 then Entry load is 2.25%. and Amount Bet. 20000000 to 49999999 then Entry load is 1.25%. and Amount greater than 50000000 then Entry load is 0%. If redeemed bet. 0 Year to 1 Year; and Amount Bet. 0 to 49999999 then Exit load is 1%. and Amount greater than 50000000 then Exit load is 0%.
Exit Load
6. FRANKLIN TEMPLETON INDIA BALANCED FUND – GROWTH
Objective: 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. SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month 0.12 3 Months -18.73 6 Months -23.77 1 Year -31.21 3 Years 9.98 5 Years 16.36 Since Inception 13.09
Top 10 Holdings:
39
Stock Tata Sons Ltd. Power Finance Corporation Ltd Housing Development Finance Corporation Ltd Bharti Airtel Ltd Rural Electrification Corporation HDFC Bank Ltd Reliance Industries Ltd
Sector Finance Finance Finance Telecom Electricals & Electrical Equipments Banks Oil & Gas, Petroleum & Refinery Computers Software & Education
Percentage P/E of Net Assets NA 9.25 20.61 17.95 5.07 22.99 13.93 13.01 8.49 5.48 4.96 4.81 4.77 4.57
Qty NA NA 66,288 163,700 NA 100,593 60,868
Value 33.70 21.99 14.19 12.85 12.45 12.36 11.85
Percentage of Change with last month 27.62 NA -8.66 -6.24 -0.57 -3.80 -8.89
Infosys Technologies Ltd Larsen & Toubro Limited Indian Railway Finance Corporation Ltd
15.92
4.53 4.47 4.43
83,890 47,373 NA
11.72 11.57 11.47
-20.10 -5.70 77.30
Engineering & 19.55 Industrial Machinery Finance NA
Asset Allocation (%):Equity 61.75 Debt 37.60
-40.61 Franklin Templeton Investments 1st Floor, Sakhar Bhavn, 230 Backbay Reclamation, Nariman Point, Mumbai Tel.-56325820 ,56325836 Templeton Asset Management (India) Pvt. Ltd. Wockhardt Towers, 4th Floor, Bandra Kurla Complex, Mumbai - 400051 Tel.- 67519100 Franklin Templetion Asset Managment (India) Pvt. Ltd. Franklin Templetion Centre, no.7, 3rd Cross Street, Adyar Chennai Tel.-24407000,
Cash & Equivalent 0.65
Increase/Decrease in Fund Size since April 30, 2008 (Rs. in crores) Mutual Fund
Asset Management Company
Registrar
Fund Features:-
40
Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load NA 5000 Daily Daily
Open Ended Equity & Debt Growth Dec 10, 1999 10 218.38 as on April 30 , 2008
Amount Bet. 0 to 49999999 then Entry load is 2.25%. and Amount greater than 50000000 then Entry load is 0%. If redeemed bet. 0 Months to 6 Months; and Amount Bet. 0 to 49999999 then Exit load is 1%. If redeemed bet. 6 Months to 12 Months; and Amount Bet. 0 to 49999999 then Exit load is 0.5%. If redeemed bet. 0 Months to 6 Months; and Amount greater than 50000000 then Exit load is 1%.
Exit Load
7. BIRLA SUN LIFE 95 – GROWTH
Objective:The scheme aims to generate long term growth of capital and current income from a portfolio of equity and fixed income securities. SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month 1.06 3 Months -22.34 6 Months -29.77 1 Year -32.70 3 Years 6.25 5 Years 16.62 Since Inception 21.84
41
Top 10 Holdings:
Percentage of Change with last month NA -20.08 NA -0.32 NA -12.75 -65.11 NA 91.37 -8.83
Stock Power Finance Corporation Ltd Rallis India Ltd Indian Railway Finance Corporation Ltd ITC Ltd GOI Trent Ltd Cash
Sector
Percentage P/E of Net Assets 9.25 7.63 6.84 6.07 4.28 4.16 4.16 4.16 3.79 3.70 3.69
Qty
Value
Finance
NA 208,122 NA 299,920 NA 122,768 NA NA NA 24,962
10.05 9.02 8.00 5.64 5.48 5.48 5.48 5.00 4.88 4.87
Fertilizers, Pesticides & 6.49 Agrochemicals Finance NA
Tobacco & Pan Masala 18.62 Securities Textiles Current Assets NA 21.34 NA 7.79 10.78 13.93
Industrial Development Banks Bank of India Ltd ICICI BANK LTD. Banks Reliance Industries Ltd Oil & Gas, Petroleum & Refinery
Asset Allocation (%):Equity 58.80 Debt 21.92 Cash & Equivalent 19.28
Increase/Decrease in Fund Size since April 30, 2008 (Rs. in crores) Mutual Fund
-20.81 Birla Mutual Fund Ahura Centre , 2nd Floor, A. 96/A-D, Mahakali Caves Road, Andheri (E) Mumbai Tel.-56928000 Birla Sunlife Asset Management Company Ltd. 2nd Floor, Tower B Ahura Centre, 96 A D, Mahakali Caves Road, Andheri(E) Mumbai - 400093 Tel.- 56928000 Computer Age Management Services Private Limited A&B, Lakshmi Bhavan
Asset Management Company
Registrar
42
609, Anna Salai Chennai
Fund Features:Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Open Ended Equity & Debt Growth Feb 11, 1995 10 111.02 as on April 30 , 2008
Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Exit Load
NA 5000 Daily Daily Amount Bet. 0 to 49999999 then Entry load is 2.25%. If redeemed bet. 0 Month to 12 Month; and Amount Bet. 0 to 49999999 then Exit load is 1%.
8. KOTAK BALANCE – GROWTH
Objective: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. SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month 1.76 3 Months -19.33 6 Months -25.72 1 Year -32.84 3 Years 9.26 5 Years 19.40 Since Inception 14.35
Top 10 Holdings:
43
Stock CBLO Kotak Mahindra Primus Indian Railway Finance Corporation Ltd ICICI BANK LTD. Reliance Industries Ltd
Sector Current Assets Finance Finance Banks Oil & Gas, Petroleum & Refinery
Percentage P/E of Net Assets NA NA NA 10.78 13.93 12.94 8.74 7.39 5.67 5.02
Qty NA NA NA NA 17,500
Value 8.80 5.94 5.02 3.86 3.41
Percentage of Change with last month 27.54 -0.36 -0.11 161.13 -6.10
Oil & Gas, Oil & Natural Gas Corpn Petroleum & Ltd Refinery Kotak Mahindra Bank Banks Ltd. Housing Development Finance Finance Corporation Ltd Electricals & Bharat Heavy Electricals Electrical Ltd Equipments Axis Bank Ltd Banks
8.01 42.58 20.61 21.91 14.41
3.01 2.94 2.85 2.81 2.65
19,800 NA 9,050 12,000 25,000
2.05 2.00 1.94 1.91 1.80
0.17 NA -8.02 -2.75 -0.47
Asset Allocation (%):Equity 59.13 Debt 26.04 Cash & Equivalent 14.83
Increase/Decrease in Fund Size since April 30, 2008 (Rs. in crores) Mutual Fund
-11.35 Kotak Mahindra Mutual Fund Sakhar Bhavan 9th Floor, 91-92, Nariman Point Mumbai Tel.-66384444 Kotak Mahindra Asset Management Company Ltd. 5A, 5th Floor, Bakhtawar, 229, Nariman Point Mumbai - 400021 Tel.- 56384444 Computer Age Management Services Private Limited A&B, Lakshmi Bhavan 609, Anna Salai Chennai
Asset Management Company
Registrar
44
Fund Features:Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Open Ended Equity & Debt Growth Nov 23, 1999 10 56.67 as on April 30, 2008
Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Exit Load
40 % as on Mar 26, 2008 5000 Daily Daily Amount Bet. 0 to 49999999 then Entry load is 2.25%. and Amount greater than 50000000 then Entry load is 0%. If redeemed bet. 0 Months to 6 Months; Exit load is 1%.
9. LIC BALANCED - PLAN C (GROWTH)
Objective: The Scheme aims to provide regular flow of dividend and capital appreciation especially when the unit is held for a longer period. SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month -0.49 3 Months -20.18 6 Months -26.29 1 Year -33.72 3 Years 7.17 5 Years 11.59 Since Inception 6.49
Top 10 Holdings:
45
Stock
Sector
Percentage P/E of Net Assets 57.18 NA 14.44 8.32 8.07 7.23 7.23 7.23 6.64
Qty NA NA 129,887 NA NA NA 55,058
Value 4.00 2.30 2.23 2.00 2.00 2.00 1.84
Percentage of Change with last month 0.12 83.68 15.71 -50.00 NA NA -15.45
IL&FS Investsmart Ltd. Finance Cash Current Assets NTPC Limited. Era Constructions (India) Ltd. Alok Industries Ltd Bajaj Hindustan Ltd Reliance Communication Ventures Ltd. Power Grid Corporation of India Ltd Core Projects & Technologies Ltd Bharti Airtel Ltd
Power Generation, 16.44 Transmission & Equip Housing & Construction Textiles Sugar Telecom 10.36 1.86 5.05 25.82
Power Generation, 19.33 Transmission & Equip Computers - Software & Education Telecom NA 17.95
5.16 4.70 4.26
166,488 49,933 15,004
1.43 1.30 1.18
-7.80 -13.28 -6.04
Asset Allocation (%):Equity 45.75 Debt 34.80 Cash & Equivalent 19.45
Increase/Decrease in Fund Size since April 30, 2008 (Rs. in crores) Mutual Fund
-4.68 LIC Mutual Fund Industrial Assurance Bldg. 4th Floor, Opp.Churchgate Stn. Mumbai Tel.-22885971 ,55719750 Jeevan Bima Sahyog Asset Management Company Ltd. Industrial Assurance Building, 4 th Floor Opp. Churchgate Station Mumbai - 400020 Tel.- 22885971 Karvy Computershare Pvt. Ltd. 21, Avenue 4, Street No 1, Banjara Hills Hyderbad
Asset Management Company
Registrar
Fund Features:-
46
Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr.
Open Ended Equity & Debt Growth Jan 1, 1991 10 22.98 as on April 30, 2008
Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Exit Load
NA 1000 Daily Daily Amount Bet. 0 to 10000000 then Entry load is 2.25%. and Amount greater than 10000001 then Entry load is 0%. Exit Load is 0%.
10. PRINCIPAL BALANCED FUND – GROWTH
Objective: Aims to generate long term capital appreciation and current income by investing in a portfolio of equity, equity related securities and fixed income securities. SCHEME PERFORMANCE (%) AS ON APRIL 30 , 2008 1 Month 2.35 3 Months -21.31 6 Months -28.01 1 Year -34.18 3 Years 5.30 5 Years 13.03 Since Inception 7.67
Top 10 Holdings:
47
Stock Corporation Bank Reliance Industries Ltd
Sector
Percentage P/E of Net Assets 11.05 5.00 4.51 4.51 4.18 3.49 3.26 3.22 3.06 2.25
Qty NA 16,747 NA NA NA NA 39,743 91,946 NA 18,717
Value 7.21 3.26 2.94 2.94 2.73 2.28 2.13 2.10 2.00 1.47
Percentage of Change with last month -0.15 -8.87 286.98 NA 0.03 -0.61 -20.23 -5.10 -0.31 -29.0
Banks 5.15 Oil & Gas, Petroleum 13.93 & Refinery 20.61 NA NA NA 10.78 20.24 NA 17.95
Housing Development Finance Finance Corporation Ltd TML Financial Services Finance Ltd State Bank of Patiala Banks Cash ICICI BANK LTD. Cipla Ltd Loan Receivable Trust April 2008 Series T2 18Au Bharti Airtel Ltd Current Assets Banks Pharmaceuticals Finance Telecom
Asset Allocation (%) :Equity 67.94 Debt 22.88 Cash & Equivalent 9.18
Increase/Decrease in Fund Size since April 30, 2008 (Rs. in crores) Mutual Fund
-11.34 PRINCIPAL Mutual Fund 3rd Floor, Exchange Plaza, B-wing A NSE Building, Bandra Kurla Complex, Bandra-E Mumbai Tel.-22021111 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 Karvy Computershare Pvt. Ltd. 21, Avenue 4, Street No 1, Banjara Hills Hyderbad
Asset Management Company
Registrar
48
Funds Features:
Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Open Ended Equity & Debt Growth Jan 14, 2000 10 53.95 as on April 30 , 2008
Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Exit Load
NA 5000 Daily Daily Amount Bet. 0 to 49999999 then Entry load is 2.25%. If redeemed bet. 0 Months to 12 Months; Exit load is 1%.
11. CANARA ROBECO BALANCE – GROWTH
Objective: Aims to provide combination of long term capital appreciation and income from a balanced portfolio of equity and fixed income securities. SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month 1.60 3 Months -18.88 6 Months -24.79 1 Year -34.48 3 Years 10.47 5 Years 18.47 Since Inception 8.11
49
Top 10 Holdings
ercentage of Net Assets 7.49 6.44 4.25 4.03 3.94 3.93 3.77 3.28 2.76 2.66 Percentage of Value Change with last month 8.94 7.69 5.08 4.82 4.71 4.70 4.50 3.92 3.30 3.17 84.83 22.00 -10.22 -0.35 -26.94 -0.15 13.65 NA -17.79 -17.44Stock ICICI BANK LTD. Reliance Industries Ltd ITC Ltd ICICI BANK LTD. Bharti Airtel Ltd Tata Steel Ltd. HDFC Bank Ltd Corporation Bank Larsen & Toubro Limited Bharat Heavy Electricals Ltd Banks
Sector
P/E 10.78
Qty 900 39,500 270,000 50 60,000 50 450 400 13,500 20,000
Oil & Gas, Petroleum & 13.93 Refinery Tobacco & Pan Masala Banks Telecom Steel Banks Banks 18.62 10.78 17.95 2.77 22.99 5.15
Engineering & Industrial 19.55 Machinery Electricals & Electrical Equipments 21.91
Asset Allocation: Equity 68.45 Debt 18.09 Cash & Equivalent 13.46
Increase/Decrease in Fund Size since April 30, 2008 (Rs. in crores) Mutual Fund
-21.26 Canara Robeco Mutual Fund 4th Floor, Construction House, 5 Walchand Hirachand Road, Ballard Estate Mumbai Tel.-66585000 ,66585086 Canara Robeco Asset Management Company Ltd. Mr. R. Swamination Construction House, 4Th Floor 5, Walchand Hirachand Marg, Ballard Estate Mumbai - 400001 Tel.- 56585042 Karvy Computershare Pvt. Ltd. 21, Avenue 4, Street No 1, Banjara Hills
Asset Management Company
Registrar
50
Hyderbad
Fund Features:
Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Open Ended Equity & Debt Growth Feb 1, 1993 10 98.21 as on April 30, 2008
Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Exit Load
NA 5000 Daily Daily Amount Bet. 0 to 19999999 then Entry load is 2.25%. and Amount greater than 20000000 then Entry load is 0%. If redeemed bet. 0 Year to 1 Year; and Amount Bet. 0 to 49999999 then Exit load is 1%. and Amount greater than 50000000 then Exit load is 0%.
12. ING BALANCED FUND – GROWTH
Objective: The fund seeks to generate long term growth of capital and current income from a portfolio of equity and fixed income securities. SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month 1.09 3 Months -23.37 6 Months -28.51 1 Year -34.55 3 Years 3.31 5 Years 12.18 Since Inception 5.47
Top 10 Holdings:
51
Stock CBLO Reliance Industries Ltd Bharti Airtel Ltd Infosys Technologies Ltd
Sector
Percentage P/E of Net Assets 30.04 6.86 3.81 3.52 3.22 3.19 3.02 2.66 2.59 2.18
Qty NA 2,041 2,813 1,460 1,804 3,458 9,311 1,253 2,258 3,791
Value 1.74 0.40 0.22 0.20 0.19 0.19 0.18 0.15 0.15 0.13
Percentage of Change with last month 5.58 -8.26 -6.62 -21.68 2.93 -18.22 2.45 -6.23 5.05 -13.23
Current Assets NA Oil & Gas, Petroleum 13.93 & Refinery Telecom 17.95
Computers Software & 15.92 Education Oil & Natural Gas Corpn Oil & Gas, Petroleum 8.01 Ltd & Refinery ICICI BANK LTD. Banks 10.78 ITC Ltd HDFC Bank Ltd Tobacco & Pan Masala 18.62 22.99 12.32 25.82
Banks Computers Tata Consultancy Services Software & Ltd. Education Reliance Communication Telecom Ventures Ltd.
Asset Allocation (%):Equity 69.88 Debt 0.00 Cash & Equivalent 30.12
Increase/Decrease in Fund Size since April 30, 2008 (Rs. in crores) Mutual Fund
-1.07 ING Mutual Fund 101 Windsor , 1st Floor,Off C.S.T.Road, Santacruz E Mumbai Tel.-3982 7999 ING Investment Management (India) Pvt Ltd. 17, Lincoln Lodge, Altamount Road, Mumbai - 400036 Tel.- 39827999 Computer Age Management Services Private Limited A&B, Lakshmi Bhavan 609, Anna Salai Chennai
Asset Management Company
Registrar
Fund Features:
52
Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Exit Load NA 5000 Daily Daily Nil
Open Ended Equity & Debt Growth Apr 17, 2000 10 4.73 as on April 30, 2008
If redeemed bet. 0 Days to 180 Days; and Amount Bet. 0 to 9999999 then Exit load is 1%. If redeemed bet. 181 Days to 365 Days; and Amount Bet. 0 to 9999999 then Exit load is 0.5%.
13. HDFC PRUDENCE FUND – GROWTH
Objective: 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/ minimized any capital erosion. SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month -1.74 3 Months -21.36 6 Months -27.51 1 Year -34.86 3 Years 6.90 5 Years 18.30 Since Inception 16.59
Top 10 Holdings:
53
Stock ICICI BANK LTD. Oil & Natural Gas Corpn Ltd NABARD AIA Engineering Limited.
Sector Banks Oil & Gas, Petroleum & Refinery Finance Engineering & Industrial Machinery
Percentage P/E of Net Assets 10.78 8.01 NA 11.67 NA 20.61 4.90 3.98 3.86 3.04 2.95 2.87
Qty 2,178,517 915,000 950 530,000 700 700
Value 116.67 94.63 91.87 72.37 70.20 68.36
Percentage of Change with last month -15.54 1.07 -0.02 -12.83 NA -0.32
Indian Railway Finance Finance Corporation Ltd Housing Development Finance Corporation Ltd Finance
Electricals & Crompton Greaves Ltd Electrical Equipments Punj Lloyd Ltd. Glaxo Smithkline Consumer Ltd Apollo Tyres Ltd Housing & Construction Food & Dairy Products Rubber & Tyres
15.88 16.31 13.54 6.77
2.86 2.77 2.62 2.53
2,937,500 2,300,000 1,000,000 16,050,000
68.06 66.02 62.30 60.19
-14.58 -4.68 -5.10 -6.28
Asset Allocation (%):Equity 74.15
Increase/Decrease in Fund Size since April 30, 2008 (Rs. in crores) Mutual Fund
Debt 25.03
-507.16
Cash & Equivalent 0.82
HDFC Mutual Fund Ramon House, 3rd Floor, H.T. Parekh Marg 169, Backbay Reclamation, Churchgate Mumbai Tel.-22029111 ,56316333 HDFC Asset Management Company Limited Ramon House, 3rd Floor, H.T. Parekh Marg 169, Backbay Reclamation, Churchgate Mumbai - 400020 Tel.- 22029111 Computer Age Management Services Private Limited A&B, Lakshmi Bhavan 609, Anna Salai Chennai
Asset Management Company
Registrar
54
Fund Features:
Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Open Ended Equity & Debt Growth Jan 31, 1994 10 1872.59 as on April 30, 2008 12 % as on Sep 28, 1998 5000 Daily Daily Amount Bet. 0 to 49999999 then Entry load is 2.25%. and Amount greater than 50000000 then Entry load is 0%. If redeemed bet. 0 Months to 12 Months; and Amount Bet. 0 to 49999999 then Exit load is 1%. and Amount greater than 50000000 then Exit load is 0%.
Exit Load
14. SBI MAGNUM BALANCED FUND – GROWTH
Objective: The fund aims to provide to its Investors growth through capital appreciation. It also plans to provide periodic income through declaration of dividends SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month 1.57 3 Months -21.05 6 Months -27.34 1 Year -35.96 3 Years 7.12 5 Years 21.19 Since Inception 14.73
55
Top 10 Holdings:
Percentage of Net Assets 7.64 6.57 6.09 5.24 4.01 3.49 3.06 2.96 2.91 2.65 Percentage of Value Change with last month 28.35 24.40 22.62 19.46 14.91 12.97 11.38 10.99 10.81 9.84 NA -0.01 0.01 1.19 NA 5.84 -13.10 -5.71 5.20 -3.83
Stock IDBI Home Finance Finance Ltd Jammu and Kashmir Banks Bank Ltd Axis Bank Ltd Banks Reliance Industries Ltd Tata Motors Ltd ICICI BANK LTD. Bharat Heavy Electricals Ltd Larsen & Toubro Limited Bharti Airtel Ltd Oil & Natural Gas Corpn Ltd
Sector
P/E NA 4.86 14.41 13.93
Qty NA NA NA 99,838 NA 242,152 71,489 44,937 137,751 95,133
Oil & Gas, Petroleum & Refinery
Auto & Auto ancilliaries 4.43 Banks 10.78 Electricals & Electrical Equipments 21.91
Engineering & Industrial 19.55 Machinery Telecom Oil & Gas, Petroleum & Refinery 17.95 8.01
Asset Allocation (%):Equity 72.50 Debt 1.65 Cash & Equivalent 25.85
Increase/Decrease in Fund Size since April 30, 2008 (Rs. in crores) Mutual Fund
-68.31 SBI Mutual Fund 191, Maker Tower E, Cuffe Parade Mumbai Tel.-22180221 SBI Funds Management Ltd. 191, Maker Tower E Wing, Cuffe Parade Mumbai - 400005 Tel.- 22180221 Computer Age Management Services Private Limited A&B, Lakshmi Bhavan 609, Anna Salai Chennai
Asset Management Company
Registrar
56
Fund Features:
Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load 20 % as on Feb 3, 2004 1000 Daily Daily Amount Bet. 0 to 49999999 then Entry load is 2.25%. and Amount greater than 50000000 then Entry load is 0%. If redeemed bet. 0 Months to 6 Months; and Amount Bet. 0 to 49999999 then Exit load is 1%. If redeemed bet. 6 Months to 12 Months; and Amount Bet. 0 to 49999999 then Exit load is 0.5%. If redeemed after 12 Months; and Amount Bet. 0 to 49999999 then Exit load is 0%. and Amount greater than 50000000 then Exit load is 0%. Open Ended Equity & Debt Growth Oct 31, 1995 10 302.96 as on April 30, 2008
Exit Load
15. SUNDARAM BNP PARIBAS BALANCED FUND – GROWTH
Objective: The scheme seeks to generate capital appreciation and current income through a mix of investments in Equities and Fixed Income Securities. SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month -2.03 3 Months -22.29 6 Months -27.51 1 Year -35.99 3 Years 5.80 5 Years 12.28 Since Inception 12.86
Top 10 Holdings:
57
Stock Cash State Bank of India Power Finance Corporation Ltd Reliance Industries Ltd Union Bank Of India Ltd Hindustan Lever Ltd Tata Steel Ltd. ABB Ltd ICICI BANK LTD. Oil & Natural Gas Corpn Ltd
Sector Current Assets Banks Finance
P/E NA 9.59 9.25
Percentage of Net Assets 20.73 8.57 8.21 8.06 5.48 4.72 4.67 4.43 4.30 3.89
Qty NA 21,672 NA 15,295 NA 69,239 40,475 20,764 29,728 13,927
Percentage of Value Change with last month 7.67 3.17 3.04 2.98 2.03 1.75 1.73 1.64 1.59 1.44 103.93 6.60 2.35 -6.69 2.52 5.37 -27.20 -7.75 -18.56 3.38
Oil & Gas, Petroleum & 13.93 Refinery Banks Diversified Steel Electricals & Electrical Equipments Banks Oil & Gas, Petroleum & Refinery 4.28 25.09 2.77 21.21 10.78 8.01
Asset Allocation (%):Equity 66.61 Debt 16.97 Cash & Equivalent 16.42
Increase/Decrease in Fund Size since April 30, 2008 (Rs. in crores) Mutual Fund
-7 Sundaram BNP Paribas Mutual Fund 46, Whites Road, 2nd Floor, Roy Pettah Chennai Tel.-28583362 ,28583367 Sundaram BNP Paribas Asset Management Co Ltd. 46, Whites Road 2nd Floor, Royapettah Chennai - 600014 Tel.- 28583362 Computer Age Management Services Private Limited A&B, Lakshmi Bhavan 609, Anna Salai Chennai
Asset Management Company
Registrar
58
Fund Features:
NA 5000 Daily Daily Amount Bet. 0 to 19999999 then Entry load is 2.25%. If redeemed bet. 0 Months to 6 Months; Exit load is 1%. If redeemed bet. 6 Months to 12 Months; and Amount Bet. 0 to 19999999 then Exit load is 1%. If redeemed after 12 Months; Exit load is 0%.
Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Exit Load
16. UTI BALANCED FUND – GROWTH
Objective: 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.
S CHE ME PE RFORMANCE (%) AS O N APRI L 30, 2008 1 Month -1.02 3 Months -20.44 6 Months -26.59 1 Year -36.14 3 Years 3.78 5 Years 11.22 Since Inception 12.75
Top 10 Holdings:-
59
Stock CORPORATE LOAN SECURITISATION SERIES 54 TRUST 2008 Reliance Industries Ltd CORPORATE LOAN SECURITISATION SERIES 53 TRUST 2008 State Bank of India Bharat Heavy Electricals Ltd
Sector
P/E
Percentage of Net Assets
Qty
Value
Percentage of Change with last month NA
Finance Oil & Gas, Petroleum & Refinery Finance Banks Electricals & Electrical Equipments Engineering & Industrial Machinery Finance Finance Computers Software & Education Banks
NA
7.62
64
64.42
13.93
5.53
240,000
46.78
-8.76
NA 9.59 21.91
5.36 4.98 4.39
45 287,616 233,144
45.30 42.09 37.10
NA 4.24 -6.82
Larsen & Toubro Limited Housing Development Finance Corporation Ltd Housing Development Finance Corporation Ltd Infosys Technologies Ltd UTI Bank Ltd
19.55 20.61 20.61 15.92 14.41
4.34 2.78 2.72 2.57 2.56
150,000 275 107,374 155,309 300,000
36.70 23.48 23.02 21.71 21.61
-5.67 -6.69 -8.52 -20.08 -0.42
Asset Allocation (%):Equity 58.37 Debt 21.26 Cash & Equivalent 20.37
Increase/Decrease in Fund Size since Sep 30, 2008 (Rs. in crores) Mutual Fund
-139.97 UTI Mutual Fund UTI Tower , Gn Block Bandra Kurla Complex, Bandra (E) Mumbai Tel.-26520850 ,56786666 UTI Asset Management Company Ltd. UTI Towers, GN Bloack Bandra Kurla Complex, Bandra (E) Mumbai - 400051 Tel.- 6678 6666 Karvy Computershare Pvt. Ltd. 21, Avenue 4, Street No 1, Banjara Hills Hyderbad
Asset Management Company
Registrar
Fund Features:
60
Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load
14 % as on Jun 30, 1999 1000 Daily Daily Amount Bet. 0 to 19999999 then Entry load is 2.25%. and Amount greater than 20000000 then Entry load is 0%. If redeemed bet. 0 Days to 180 Days; and Amount Bet. 0 to 19999999 then Exit load is 1%. If redeemed bet. 0 Days to 180 Days; and Amount greater than 20000000 then Exit load is 0.5%.
Exit Load
Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr.
Open Ended Equity & Debt Growth Dec 30, 1995 10 705.5 as on April 30, 2008
17. TATA BALANCED FUND – GROWTH
Objective:Aims to invest in equity and debt oriented securities so as to give investor balanced returns. SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month 0.99 3 Months -22.02 6 Months -28.81 1 Year -38.39 3 Years 9.04 5 Years 16.87 Since Inception 12.84
61
Top 10 Holdings
ercentage of Net Assets 7.68 7.30 4.96 3.90 3.83 3.15 2.84 2.84 2.64 2.59 Percentage of Value Change with last month 15.00 14.27 9.70 7.61 7.47 6.14 5.55 5.55 5.16 5.07 NA -0.04 0.71 -15.89 29.80 20.18 0.25 40.40 2.57 1.22Stock GOI
Sector Securities
P/E NA NA 8.03 NA 9.59 22.99 9.25 13.93 25.09 8.01
Qty NA NA NA NA 51,080 49,972 NA 28,456 204,432 49,014
Export-Import Bank of Finance India Ltd State Bank of Mysore Cash State Bank of India HDFC Bank Ltd Power Finance Corporation Ltd Reliance Industries Ltd Hindustan Lever Ltd Oil & Natural Gas Corpn Ltd Banks Current Assets Banks Banks Finance Oil & Gas, Petroleum & Refinery Diversified Oil & Gas, Petroleum & Refinery
Asset Allocation (%):Equity 72.30 Debt 25.88 Cash & Equivalent 1.82
Increase/Decrease in Fund Size since April 30, 2008 (Rs. in crores) Mutual Fund
-35.24 Tata Mutual Fund Mulla House, 4th Floor 51 M. G. Road. Mumbai Tel.-56315191 ,56315192 ,56315193 Tata Asset Management Private Limited Mulla House, Ground Floor, 51, M. G. Road, Fort Mumbai - 400001 Tel.- 66315191 Computer Age Management Services Private Limited A&B, Lakshmi Bhavan 609, Anna Salai Chennai
Asset Management Company
Registrar
62
Fund Features:Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Open Ended Equity & Debt Growth Oct 7, 1995 10 160.14 as on April 30, 2008
Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load
12.5 % as on Sep 10, 2003 5000 Daily Daily Amount Bet. 0 to 19999999 then Entry load is 2.25%. and Amount greater than 20000000 then Entry load is 0%. If redeemed bet. 0 Months to 6 Months; and Amount Bet. 0 to 19999999 then Exit load is 1%. and Amount greater than 20000000 then Exit load is 0%.
Exit Load
18. BARODA PIONEER BALANCE FUND – GROWTH
Objective:To generate long term capital appreciation along with stability through a well balanced portfolio of equity & debt instruments. SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month 1.09 3 Months -24.47 6 Months -25.45 1 Year -39.52 3 Years 2.58 5 Years 13.28 Since Inception 13.84
Top 10 Holdings:-
63
Stock Cash Siemens Ltd Larsen & Toubro Limited Ranbaxy Laboratories Ltd MIC Electronics Limited ITC Ltd Henkel SPIC India Ltd Reliance Communication Ventures Ltd. India Cements Ltd
Sector Current Assets Electronics Engineering & Industrial Machinery Pharmaceuticals Electricals & Electrical Equipments
Percentage P/E Qty of Net Assets NA 18.06 19.55 28.44 4.89 31.21 17.80 17.75 7.11 5.41 4.13 3.92 3.80 3.79 3.36 NA 2,370 499 1,000 2,987 1,597 NA 702 1,997 2,003
Value 0.23 0.13 0.13 0.05 0.04 0.03 0.03 0.03 0.03 0.02
Percentage of Change with last month 0.69 0.32 -0.10 0.18 20.99 -0.16 14.94 -14.20 3.34 -29.13
Tobacco & Pan Masala 18.62 Personal Care NA Telecom Cement 25.82 4.93 4.10
Hindalco Industries Ltd Metals
Asset Allocation (%):Equity 68.79 Debt 0.00 Cash & Equivalent 31.21
Increase/Decrease in Fund Size since March 31 , 2008 (Rs. in crores) Mutual Fund
0 BOB Mutual Fund 105, 10th Floor, Maker Chamber - III, Nariman Point Mumbai Tel.-22853323 ,22853326 Bank Of Baroda Asset Management Company Ltd 105, 10th Floor, Maker Chamber - III, Nariman Point Mumbai - 400023 Tel.- 22853323 Karvy Computershare Pvt. Ltd. 21, Avenue 4, Street No 1, Banjara Hills Hyderbad
Asset Management Company
Registrar
64
Fund Features:Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Exit Load NA 3000 Daily Daily Amount Bet. 0 to 2500000 then Entry load is 1.5%. and Amount Bet. 2500001 to 10000000 then Entry load is 1%. and Amount greater than 10000001 then Entry load is 0.5%. Exit Load is 0%. Open Ended Equity & Debt Growth Sep 3, 2003 10 0.73 as on April 30, 2008
19. ICICI PRUDENTIAL BALANCED – GROWTH
Objective:Aims to invest in equity and debt oriented securities so as to give investor balanced returns. SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month 3.42 3 Months -26.70 6 Months -33.19 1 Year -40.40 3 Years 1.44 5 Years 12.26 Since Inception 11.02
Top 10 Holdings:-
65
Stock
Sector
Percentage P/E of Net Assets 20.61 -0.94 -8.77 13.93 NA 10.78 19.55 16.53 11.00 10.38 7.30 5.53 3.49 3.06
Qty
Value
Percentage of Change with last month 370.38 NA 18.10 -6.93 -10.15 0.99 -17.75
Housing Development Finance Finance Corporation Ltd Indian Oil Corporation Ltd Spice Communications Ltd Reliance Industries Ltd Nifty ICICI BANK LTD. Larsen & Toubro Limited AIA Engineering Limited. ICICI BANK LTD. Bharti Airtel Ltd Oil & Gas, Petroleum & Refinery Telecom Oil & Gas, Petroleum & Refinery Miscellaneous Banks Engineering & Industrial Machinery Engineering & Industrial Machinery Banks Telecom
NA NA 3,700,000 101,988 NA NA 34,000
45.00 29.94 28.25 19.88 15.06 9.50 8.32
11.67 10.78 17.95
2.97 2.95 2.78
59,148 150,001 96,499
8.08 8.03 7.57
-12.99 -14.63 -14.71
Asset Allocation (%):Equity 62.77 Debt 29.61
-55.9 ICICI Prudential Mutual Fund 8th Floor, Peninsula Tower, Ganpatrao Kadam Marg, Off Senapati Bapat Marg, Lower Parel Mumbai Tel.-24997000 ,24999777 ICICI Prudential Asset Management Company Ltd. 8th Floor, Peninsula Tower Ganpatrao Kadam Marg, Lower Parel Mumbai - 400013 Tel.- 24997000 Computer Age Management Services Private Limited A&B, Lakshmi Bhavan 609, Anna Salai Chennai
Cash & Equivalent 7.62
Increase/Decrease in Fund Size since Sep 30, 2008 (Rs. in crores) Mutual Fund
Asset Management Company
Registrar
66
Fund Features:Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load NA 5000 Daily Daily Amount Bet. 0 to 49999999 then Entry load is 2.25%. and Amount greater than 50000000 then Entry load is 0%. If redeemed bet. 0 Months to 6 Months; and Amount Bet. 0 to 49999999 then Exit load is 1%. If redeemed bet. 6 Months to 12 Months; and Amount Bet. 0 to 49999999 then Exit load is 0.5%. and Amount greater than 50000000 then Exit load is 0%. Open Ended Equity & Debt Growth Oct 7, 1999 10 216.32 as on April 30, 2008
Exit Load
20. ESCORTS BALANCED FUND - GROWTH
Objective:Seeks to generate long term capital appreciation and current income from a well diversified portfolio of equity shares and fixed income securities. SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month 2.96 3 Months -20.69 6 Months -32.58 1 Year -44.75 3 Years 4.64 5 Years 14.30 Since Inception 19.19
Top 10 Holdings:-
67
Stock Current Assets Andhra Bank ICICI Ltd Bharat Heavy Electricals Ltd Larsen & Toubro Limited ICICI BANK LTD. Infrastructure Development Finance company Aban Offshore Ltd
Sector Current Assets Banks Finance Electricals & Electrical Equipments
Percentage P/E of Net Assets NA 4.01 NA 21.91 33.51 9.73 9.11 5.39 4.60 4.13 4.06
Qty NA NA NA 964 535 2,195 16,059
Value 0.95 0.28 0.26 0.15 0.13 0.12 0.12
Percentage of Change with last month 190.66 7.92 6.41 -2.95 -0.34 NA -13.41
Engineering & 19.55 Industrial Machinery Banks Finance Oil & Gas, Petroleum & Refinery Oil & Gas, Petroleum & Refinery Banks 10.78 10.14
12.42
3.86
535
0.11
4.88
Reliance Industries Ltd Punjab National Bank
13.93 5.75
3.67 3.15
535 1,886
0.10 0.09
-6.97 5.73
Asset Allocation:Equity 30.76 Debt 17.91 Cash & Equivalent 51.33
Increase/Decrease in Fund Size since Sep 30, 2008 (Rs. in crores) Mutual Fund
-0.49 Escorts Mutual Fund 11, Scindia House Connaught Circus New Delhi Tel.-23321654 ,51514100 , 32308046 Escorts Asset Management Ltd. 11, Scindia House Connaught Circus New Delhi - 110001 Tel.- 3321654 In-House - Escorts 11, Scindia House Connaught Circus New Delhi Tel.- , ,,
Asset Management Company
Registrar
68
Fund Features:Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Exit Load NA 1000 Daily Daily Entry Load is 2.25%. Exit Load is 0%. Open Ended Equity & Debt Growth Mar 20, 2001 10 2.36 as on April 30, 2008
21. JM BALANCED – GROWTH
Objective: Aims to provide investors with liquidity and current income along with capital appreciation. SCHEME PERFORMANCE (%) AS ON APRIL 30, 2008 1 Month -2.60 3 Months -33.85 6 Months -42.27 1 Year -52.36 3 Years -0.77 5 Years 6.73 Since Inception 8.52
Top 10 Holdings:
69
Stock Union Bank Of India Ltd Current Assets Banks
Sector
P/E 4.28 NA 22.33 10.78 4.89
Percentage of Net Assets 15.58 10.95 9.65 7.39 7.22
Qty NA NA 313,005 36,327 200,179
Value 4.10 2.88 2.54 1.95 1.90
Percentage of Change with last month 141.18 30.71 -12.13 -20.11 -4.26
Current Assets
Balrampur Chini Mills Sugar Ltd ICICI BANK LTD. MIC Electronics Limited 3 i Infotech Limited. Banks Electricals & Electrical Equipments
Computers Software & Education IVRCL Infrastructure Housing & & Projects Ltd. Construction Electricals & Bharat Heavy Electrical Electricals Ltd Equipments PSL Limited Bharti Airtel Ltd Steel Telecom
3.88 4.75 21.91 4.90 17.95
6.79 6.74 5.86 5.04 4.47
260,000 76,002 9,700 60,000 15,000
1.79 1.78 1.54 1.33 1.18
-38.80 -23.61 -7.04 -29.93 -6.07
Asset Allocation (%):Equity 47.31 Debt 25.14 Cash & Equivalent 27.55
Increase/Decrease in Fund Size since April 30, 2008 (Rs. in crores) Mutual Fund
-6.82 JM Financial Mutual Fund 5th Floor, A Wing , Laxmi Tower Bandra Kurla Complex. Mumbai Tel.-39877777 JM Financial Asset Management Private Ltd. 5th Floor, A Wing , Laxmi Tower Bandra Kurla Complex. Mumbai - 400051 Tel.- 39877777 Karvy Computershare Pvt. Ltd. 21, Avenue 4, Street No 1, Banjara Hills Hyderbad
Asset Management Company
Registrar
Fund Features:-
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Last Divdend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load
40 % as on Dec 20, 2003 1000 Daily Daily Amount Bet. 0 to 29999999 then Entry load is 2.25%. and Amount greater than 30000000 then Entry load is 0%. If redeemed bet. 0 Days to 1 Year; Exit load is 0.5%. If redeemed bet. 0 Days to 91 Days; and Amount greater than 30000000 then Exit load is 0.5%.
Exit Load
CHAPTER: 4 – ANALYSIS & OBSERVATIONS
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In this chapter, performance evaluation of the various equity balanced Mutual Funds is listed. The Mutual Funds Schemes have been chosen on the basis of their returns over the period of one year from 1st May 2007 to 30th April 2008. Two types of techniques are used for evaluation of performance of the Mutual Funds Schemes such as Return Risk Ratio and Single Index Model. The Mutual Funds Schemes chosen are:
1. Birla Sun Life 95 - Growth 2. HDFC Prudence Fund – Growth 3. UTI Balanced Fund – Growth 4. Tata Balanced Fund – Growth 5. Escorts Balanced Fund – Growth 6. LIC Balanced – Plan C (Growth) 7. DSP Merrill Lynch Balanced Fund – Growth 8. Canara Robeco Balanced – Growth 9. SBI Magnum Balanced Fund – Growth 10. Franklin Templeton India Balanced Fund – Growth 11. ICICI Prudential Balanced Fund – Growth 12. Sundaram BNP Paribas Balanced Fund – Growth 13. HDFC Balanced Fund – Growth
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14. Brila Sun Life Balanced Fund – Growth 15. Escorts Opportunities Fund – Growth 16. Baroda Pioneer Balanced Fund – Growth 17. JM Balanced – Growth 18. Kotak Balance – Growth 19. PRINCIPAL Balanced Fund – Growth 20. ING Balanced Fund - Growth 21. Reliance Regular Savings Fund – Balanced - Growth
Table No: 1 Return Risk Ratio:
No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Growth Kotak Balance - Growth 0.18226 -0.00021 1.99621 1.77355 10.95254 -8445.476 Growth PRINCIPAL Balanced Fund - Growth DSP Merrill Lynch Balanced Fund - Growth Reliance Regular Savings Fund - Balanced 0.10094 0.0891 0.10478 1.53661 1.33089 1.42076 15.223004 14.937037 13.559458 Growth ICICI Prudential Balanced - Growth Baroda Pioneer Balance Fund - Growth Escorts Opportunities Fund - Growth UTI Balanced Fund - Growth Escorts Balanced Fund - Growth HDFC Prudence Fund - Growth Tata Balanced Fund - Growth Canara Robeco Balance - Growth HDFC BalancedFund - Growth SBI Magnum Balanced Fund -Growth ING Balanced Fund - Growth LIC Balanced - Plan C (Growth) Birla Sun Life 95 - Growth Sundaram BNP Paribas Balanced Fund 0.04927 0.05433 0.06444 0.04919 0.06756 0.08676 0.06567 0.08148 0.08785 0.06918 0.07965 0.08176 0.11748 0.07574 1.37617 1.48444 1.58192 1.14429 1.37035 1.75944 1.24916 1.48446 1.58658 1.22517 1.39694 1.40796 1.94447 1.21678 27.931195 27.322658 24.548727 23.262655 20.283452 20.279391 19.021776 18.218704 18.060102 17.709887 17.538481 17.220646 16.551498 16.065223 Scheme Name Birla Sun Life Balanced Fund - Growth JM Balanced - Growth Franklin Templeton India Balanced Fund Return 0.05694 0.04965 Risk 1.77197 1.51488 RRR 31.119951 30.511178
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Table No: 1.1
Part – A (Higher Return)
No 1 2 3 4 Scheme Name Birla Sun Life Balanced Fund - Growth JM Balanced - Growth Franklin Templeton India Balanced Fund - Growth ICICI Prudential Balanced - Growth Return 0.05694 0.04965 0.04927 0.05433 Risk 1.77197 1.51488 1.37617 1.48444 RRR 31.119951 30.511178 27.931195 27.322658
The above table indicates the Return Risk Ratio of the fund which was chosen for this study. Of the 21 funds, Birla Sun Life Balanced Fund, JM Balanced, Franklin Templeton India Balanced Fund, ICICI Prudential Balanced give higher returns i.e. more than 25% of the RRR. By choosing these type of funds, investor can obtain maximum return with minimum risk. Table No: 1.2 Part – B (Normal Return)
No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Scheme Name Baroda Pioneer Balance Fund - Growth Escorts Opportunities Fund - Growth UTI Balanced Fund - Growth Escorts Balanced Fund - Growth HDFC Prudence Fund - Growth Tata Balanced Fund - Growth Canara Robeco Balance - Growth HDFC BalancedFund - Growth SBI Magnum Balanced Fund -Growth ING Balanced Fund - Growth LIC Balanced - Plan C (Growth) Birla Sun Life 95 - Growth Sundaram BNP Paribas Balanced Fund - Growth PRINCIPAL Balanced Fund - Growth DSP Merrill Lynch Balanced Fund - Growth Reliance Regular Savings Fund - Balanced - Growth Return 0.06444 0.04919 0.06756 0.08676 0.06567 0.08148 0.08785 0.06918 0.07965 0.08176 0.11748 0.07574 0.10094 0.0891 0.10478 0.18226 Risk 1.58192 1.14429 1.37035 1.75944 1.24916 1.48446 1.58658 1.22517 1.39694 1.40796 1.94447 1.21678 1.53661 1.33089 1.42076 1.99621 RRR 24.548727 23.262655 20.283452 20.279391 19.021776 18.218704 18.060102 17.709887 17.538481 17.220646 16.551498 16.065223 15.223004 14.937037 13.559458 10.95254
The above table indicates the performance evaluation of Mutual Funds Schemes under Return Risk Ratio Method. Under this method, schemes which are given in the Part B table, represents Normal return giving Mutual Funds Schemes. These kinds of schemes are suitable for investor those are risk averse. Price fluctuations of these funds are low. Table No: 1.3
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Part – C (Low Return)
No 1 Scheme Name Kotak Balance - Growth Return -0.00021 Risk 1.77355 RRR -8445.476
The above table indicates Mutual Funds Schemes with negative Return Risk Ratio or less than normal Return Risk Ratio. So, investors are advised not to invest in these types of Mutual Funds Schemes. Return Ratio is one of the important techniques in which investor can analyse the risk and return of individual return. By which investor can choose the best securities and best portfolio. Return Risk helps to investors to analyse and invest in the best portfolio.
Table No: 2
SINGLE INDEX
Security No 1 2 3 4 5 Mean Return 4.14 2.58 2.32 2.05 1.56 Excess Return 3.94 2.38 2.12 1.85 1.36 Unsystematic Excess Beta Risk 1.06 1.03 0.71 0.96 0.76 2.6569 0.0196 0.4225 0.0441 0.0484 Return Beta 3.716981132 2.310679612 2.985915493 1.927083333 1.789473684
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6 1.83 7 1.8 8 1.8 9 1.77 10 1.63 11 1.56 12 1.53 13 1.48 14 1.47 15 1.33 16 1.3 17 1.25 18 1.22 19 1.16 20 1.11 21 0.24 Assumed Rf = 2%
1.63 1.6 1.6 1.57 1.43 1.36 1.33 1.28 1.27 1.13 1.1 1.05 1.02 0.96 0.91 0.04
0.77 0.65 0.74 0.8 0.72 0.91 0.55 0.71 0.66 0.82 0.56 0.8 0.73 0.56 0.69 0.87
0.000009 0.0729 0.0025 0.0121 0.0049 0.36 0.0484 0.0361 0.0081 0.3721 0.0016 0.3249 0.2704 0.0256 0.2704 3.3489
2.116883117 2.461538462 2.162162162 1.9625 1.986111111 1.494505495 2.418181818 1.802816901 1.924242424 1.37804878 1.964285714 1.3125 1.397260274 1.714285714 1.31884058 0.045977011
Table No: 2.1
Calculation of ‘C’ value
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Excess Security Return Beta (RiRf)?iM/?²ei ?²iM/?²ei ?i=1(?²iM/?²ei) ?i=1(?²iM/?²ei) 3.71698113 42.28988 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 2 2.31067961 2 2.98591549 3 1.92708333 3 1.78947368 4 2.11688311 7 2.46153846 2 2.16216216 2 1.9625 1.98611111 1 1.49450549 5 2.41818181 8 1.80281690 1 1.92424242 4 1.37804878 1.96428571 4 1.3125 1.39726027 4 1.71428571 4 1.31884058 0.04597701 1 1.57190711 125.0714286 3.56260355 40.27210884 21.3553719 139455.5556 14.26611797 473.6 103.8016529 210.122449 3.437777778 15.11363636 25.17451524 103.4814815 2.490190809 385 2.585410896 2.753698225 21 2.322115385 0.010391472 7 5412.755 1 119.3136 1 2089.795 9 1193.388 4 6587777. 8 579.5610 4 21904 5289.256 2 10579.59 2 230.0277 8 625 1396.398 9 5377.777 8 180.7041 1 19600 196.9836 9 197.0784 1225 176.0724 77 9 22.60145 1 1.57190711 126.6433357 130.2059392 170.4780481 191.83342 139647.389 139661.6551 140135.2551 140239.0567 140449.1792 140452.617 141077.617 141102.7915 141206.273 141208.7632 141593.7632 141596.3486 141599.1023 141620.1023 141622.4244 141622.4348 42.28988671 5455.044989 5574.358598 7664.154517 8857.542946 6596635.321 6597214.882 6619118.882 6624408.138 6634987.73 6635217.758 6635842.758 6637239.156 6642616.934 6642797.638 6662397.638 6662594.622 6662791.7 6664016.7 6664192.773 6664215.374 C 0.0369348 0.023214 0.0233566 0.022242 0.0216563 0.0211695 0.0211698 0.0211713 0.02117 0.021168 0.0211677 0.0212599 0.0212593 0.0212576 0.0212574 0.0212527 0.0212524 0.0212522 0.0212515 0.0212512 0.0212511
Formula a used to determine ‘C’ value is ci=(?²M?i=1(?i-Rf )*?iM/?²ei)/(1+?²M?i=1(?²iM/?²ei))
Table No: 2.2 Calculation ‘Z’ value for determining Single Index Z 1.4681956 7 119.48760 8 4.9556834 6 41.146089 6 27.519204 9 177951.13 21.618550 8 629.06728 6 127.31009 3 286.40957 4 3.6844147 27.059624 7 34.730644 4 153.78061 8 2.9554244 3 674.57280 5 X 0.00081 Reliance Regular Savings Fund - Balanced 5 Growth 0.06632 5 LIC Balanced - Plan C (Growth) 0.00275 1 DSP Merrill Lynch Balanced Fund - Growth 0.02283 9 Escorts Balanced Fund - Growth 0.01527 5 PRINCIPAL Balanced Fund - Growth 0.09872 Tata Balanced Fund - Growth 0.012 Birla Sun Life 95 - Growth 0.34918 4 ING Balanced Fund - Growth 0.07066 7 SBI Magnum Balanced Fund - Growth 0.15898 Sundaram BNP Paribas Balanced Fund 1 Growth 0.00204 5 Baroda Pioneer Balance Fund - Growth 0.01502 HDFC Balanced Fund - Growth 0.01927 8 UTI Balanced Fund - Growth 0.08536 1 HDFC Prudence Fund - Growth 0.00164 1 Canara Robeco Balance - Growth 0.37444 3 Birla Sun Life Balance Fund - Growth 78
0.00174 3.1408191 3.6724762 36.692050 3 3.2711352 0.0023490 4
?Z = 180153.675 Formula used for determining ‘Z’ is Z = ?im/?²ei [ (( ? - T ) / ?im ) - C ]
3 JM Balanced - Growth 0.00203 9 ICICI Prudential Balanced - Growth 0.02036 7 Escorts Opportunities Fund - Growth 0.00181 Franklin Templeton India Balanced Fund 6 Growth 1.3E-06 Kotak Balance - Growth
Table No: 2.2.1 Part – A (Higher Return) No 1 2 3 Scheme Name Birla Sun Life Balance Fund - Growth ING Balanced Fund - Growth Sundaram BNP Paribas Balanced Fund - Growth X 0.374443 0.349184 0.158981
The above table indicates the optimum portfolio of the Mutual Funds Schemes under Single Index Model. The above Mutual Funds Schemes represents higher return giving schemes with minimum risk. Investor can obtain maximum return through this Mutual Funds Schemes.
Table No: 2.2.2 Part – B (Normal Return) No 1 2 3 4 5 Scheme Name Tata Balanced Fund - Growth HDFC Prudence Fund - Growth SBI Magnum Balanced Fund - Growth LIC Balanced - Plan C (Growth) Escorts Balanced Fund - Growth X 0.09872 0.085361 0.070667 0.066325 0.022839
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6 7 8 9 10
Escorts Opportunities Fund - Growth UTI Balanced Fund - Growth PRINCIPAL Balanced Fund - Growth HDFC Balanced Fund - Growth Birla Sun Life 95 - Growth
0.020367 0.019278 0.015275 0.01502 0.012
The above table indicates the normal return giving portfolio under Single Index Model. These types of portfolios give moderate return with normal risk. Before investing these types of fund, investor should analyse the market situation and present position of the market conditions.
Table No: 2.2.3 Part – C (Low Return) No 1 2 3 4 5 6 7 8 Scheme Name DSP Merrill Lynch Balanced Fund - Growth Baroda Pioneer Balance Fund - Growth ICICI Prudential Balanced - Growth Franklin Templeton India Balanced Fund - Growth JM Balanced - Growth Canara Robeco Balance - Growth Reliance Regular Savings Fund - Balanced - Growth Kotak Balance - Growth X 0.002751 0.002045 0.002039 0.001816 0.001743 0.001641 0.000815 -0.00001
The above table shows the low return giving securities. Investor should avoid these types of investment. Past performances of these funds are not giving considerable returns. So investor should be very careful with these funds.
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CONCLUSION
Before investing into the investment, selection of best and optimum portfolio and securities is the essential. Because, return is the greatest reward for selecting the best and optimum portfolio, and securities. So, analysis of the securities and portfolio is essential which helps to the investors to select the best and optimum portfolio and securities. For analysis of the securities and portfolio, investors are using different types of techniques for evaluating the performances of different portfolios and securities. Return Risk Ratio and Single Index Model are the important techniques for determination of Return and Risk of the individual securities and portfolio. Mutual Funds is one of the best method for investment for obtaining maximum return through diversification of the risk into various securities. Return Risk Ratio and Single Index Model helps to the investor to evaluate the performance of the different Mutual Funds Schemes, which classifies the Higher, Normal and Low return-giving portfolio. From which investor can select the best and optimum portfolio so that investors can obtain maximum return with bearable risk.
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BIBLIOGRAPHY:
Websites:
1) Mutualfundsindia.com 2) www.bseindia.com 3) www.moneycontrol.com 4) www.google.co.in 5) www.capitalmarket.com 6) www.indiainfoline.com 7) www.yahoofinance.com 8) www.afiindia.com Books:“Investment Management” by “B.K. Bhalla” “Portfolio and Security Analysis” by “Punithavathy Pandian” “Securities Analysis and Portfolio Management” by “V.A. Avadhani”
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