Description
A fixed deposit (FD) is a financial instrument provided by Indian banks which provides investors with a higher rate of interest than a regular savings account, until the given maturity date . It may or may not require the creation of a separate account. It is known as a term deposit or time deposit in Canada, Australia, New Zealand, and the US, and as a bond in the United Kingdom.
PROJECT REPORT
AT
HI-FLEX MODULAR AND SEATING SOLUTIONS PVT. LTD.,BANGALORE
A Project Report submitted in partial fulfillment of the For the award of the degree of
MASTER OF BUSINESS ADMINISTRATION (Industry Integrated)
To MADURAI KAMARAJ UNIVERSITY,MADURAI
BY ADITYA KUMAR Reg No.:A7753002 Under the guidance of PROF.SUNIL D’ANTO
BANGALORE SCHOOL OF BUSINESS J.P.NAGAR-7TH PHASE BANGALORE-78
JUNE 2008
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CERTIFICATE
This is to certify that the Project Report at HI-FLEX MODULAR AND SEATING SOLUTIONS PVT. LTD,BANGALORE
Submitted in partial fulfillment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION (Industry Integrated)
To
MADURAI KAMARAJ UNIVERSITY,MADURAI
Is a record of bonafide training carried out by ADITYA KUMAR
Under my supervision and guidance and that no part of this report has been submitted for the award of any other degree/diploma/ fellowship or similar titles or prizes.
FACULTY GUIDE
Signature: Name
ROF. SUNIL D’ANTO
Qualifications:Signature & seal of the learning Center
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STUDENT’S DECLARATION
I hereby declare that the project report conducted at
HI-FLEX MODULAR AND SEATING SOLUTIONS PVT LTD.
Under the guidance of PROF.SUNIL’D ANTO
Submitted in partial fulfillment of requirements for the Degree of
MASTER OF BUSINESS ADMINISTRATION (Industry Integrated) TO MADURAI KAMRAJ UNIVERSITY,MADURAI
Is my original work and the same has not been submitted for the Award of any other Degree/Diploma/Fellowship or other similar Titles or Prizes
Place: Date:
ADITYA KUMAR Reg.No.A7753002
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CONTENTS
CHAPTER 1. INTRODUCTION 1.1 General Introduction 1.2 Objectives of the study 1.3 Industry Profile a.Origin and development of the industry b.Growth and present status of the industry c.Future of the industry
CHAPTER 2. PROFILE OF THE ORGANIZATION 2.1 Origin of the organization 2.2 Growth and development of the Organization 2.3 Present status of the Organization 2.4 Future plans of the Organization 2.5Functional Departments of the Organization 2.6 Organizational structure and Organization chart 2.7 Product and service profile of the Organization 2.8 Market profile of the Organization
CHAPTER 3. DISCUSSIONS ON TRAINING 3.1 Student’s work profile (Role and Responsibilities) 3.2 Description of live experience 3.3 Student’s contribution to Organization
CHAPTER 4 STUDY OF SELECTED RESEARCH PROBLEEM 4.1 Statement of research problem 4.2 Statement of research objectives 4.3 Research design and methodology 4.4 Analysis of data 4.5 Summary of findings
CHAPTER 5. SUMMARY AND CONCLUSIONS 5.1 Summary of Learning Experience
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Hi-Flex Modular & Seating Solutions Private Limited
Retailing Comfort @ Wholesale Prices
CERTIFICATE OF THE ORGANIZATION
To The Training Officer, National Institute of Applied Management. Bangalore/New Delhi
This is to certify thatMr. ADITYA KUMARof MBA(Industry Integrated)course of Madurai Kamaraj University at BANGALORE SCHOOL OF BUSINESS,Learning Centre has undergone management training at our organization from 17-03-08 to 27-06-08.
His performance during the training period was satisfactory/good.
Authorized Signatory
Hi-Flex Modular & Seating Solutions Private Limited
No.44/8, 1 & 2 Floor, First Main – RBI Layout, th J P Nagar 7 Phase, Bangalore – 560078. Tel: 080 – 41602460 Fax: 080 – 41602461 www.hmssquare.com Retailing Comfort @ Wholesale Prices
st nd
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ACKNOWLEDGEMENT
The satisfaction and euphoria that accompany the successful completion of the project would be incomplete without mentioning the people who made it possible,whose constant guidance and encouragement crowned out efforts with success.
I am grateful to MR.S.P.REDDY,DIRECTOR,BSBfor having given me an opportunity to carry out the project work.
I also take this opportunity to express my heartful gratitude PROF.SUNIL D’ANTO,BSBfor his valuable suggestions,guidance and support through out the project.
I am gratefulto MR.SABARIGIRI VARADHA,CHAIRMAN(HI-FLEX MODULAR &SEATING SOLUTIONS PVT. LTD) for his constant guidance during the entire period of the dissertation.
I am grateful to all the faculties of BSB for their constant guidance and support during the stay.
At the end,I want to thank my parents and my friendsfor their support throughout the project.
ADITYA KUMAR Reg. No.A7753002
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1. INTRODUCTION
1.1 GENERAL INTRODUCTION
Hi-Flex Modular&Seating Solutions Private Limited is dedicated in providing its clientele a range of quality modular and seating solutions. HMS2 producesChairs, Sofas, Executive Tables, Beds, Dining Tables, Modular Kitchens, Modular Workstations and other allied products with a competitive edge in terms of price, durability, ergonomics, functionality and aesthetical value. HMS2has its aim to improve the working conditions in the home and office, thereby increasing the productivity and efficiency of human resources round the clock.
1.2 OBJECTIVES OF THE STUDY To invest the surplus of the company ‘s corpus in different financial products like equity,derivatives,mutual funds,bullion and bonds in order to increase the income of the company from sources other than from the core activity of the business.The objective is to create wealth for the company so that it has its own surplus for carrying out expansion and modernization plans,and it does not have to rely on borrowed funds/loans.
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1.3 INDUSTRY PROFILE
a.Origin and development of the industry
Local tradition and culture contributed to the development of ornamental woodwork – for palaces, temples, public houses, works of arts, etc.The main thrust to furniture development was given by foreign influence. When the Portuguese,the first Europeans to come to India, arrived, they Did not find any familiar furniture, it was them, and later, the Dutch, the French and the English, who inspired the composition of domestic furniture to cater to their settlements. The Indian carpenter turned out to be precocious in adapting foreign designs and inducing in them an indigenous flavor of craftsmanship.It was the play of these influences that gave birth to the Mughal style, the Goanese, the Indo-Dutch style, the use of ebony and ivory in the manner of Chippendale and Sheraton. English predominance since the 18th century resulted in English influence In furniture styling, and this became so popular that even Indian rulers became patrons.A tropical country with about eighty varieties of hardwood available for woodwork, India has an old tradition of furniture making. Subsequent to the English influence who cultivated teak as a ‘royal tree’ for shipping industry (teak is tremendously resilient to water and weather), teak assumed tremendous popularity for quality woodwork. Almost all large articles were composed on wood. Royal houses and rich households have always been the traditional patrons of the furniture industry, and even
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today the royal palaces strewn across the four corners of India feature some of the most illustrious examples of indigenous woodwork. Frederick Litchfield’s Illustrated History of Furniture (1893) mentions many such marvels that still mesmerize. Like the two wooden teak doors sent as gift to the Indian Government and now kept in the National Museum (Kolkata). Or the shisham wood (rosewood) carved window at Amritsar with its Overhanging cornice, ornamental arches with pillars and intricate work on the body. Royal gifts sent to the Queen and the King as well as the Princes also showed an obsession with details that is unique to India. Even today, much of British royal furniture is of Indian vintage. In the years since the British left the furniture industry in India has evolved. Utility and simplicity gained primacy over art. Price considerations have driven down ornamentation to the minimum, and cheaper wood varieties have come to be used to cater to the huge low cost demand. Yet, in niche areas the old forms of furniture still continue to be crafted. In many places, like Rajasthan, that still has a royal ethos in a Republican India, with its dozens of Palaces’, the old form of furniture making is still preserved. Here, one can take a time travel and find works of an earlier day being crafted with the same expertise. Exported around the world wherever antique and ornamental furniture is appreciated, the Jodhpur furniture forms the focal point of this industry. Nowadays foreign designs are adapted with local styles that are hugely popular with Western customers.
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b.Growth and present status of the industry
The Indian furniture industry is estimated at around Rs 35,000 crore (Rs 350 billion). Eighty-five per cent of this falls into the unorganised sector. The share of the wooden furniture market is around Rs 60 crore (Rs 600 million). The world home furniture market is worth Rs 20,000 crore (Rs 200 billion). During the past three years, it grew by 20 per cent a year. The range of indigenous furniture available in India includes both residential and contract system furniture, with an increased concentration in office and kitchen furniture. Manufacturers in India generally use a three-tier selling and distribution structure, comprising the distributor, wholesaler and retailer. India was the biggest furniture importer in 2004-05, with a 17 per cent share in furniture imports worldwide. A total of 10,476 importers shipped furniture to India during this period. The current imports are mainly from Italy, Germany, Spain, China, Korea, Malaysia, Indonesia, the Philippines and Japan. The furniture market in India is mainly concentrated in A, B and C cities (the top 589 cities). It has been estimated that the top 784 urban centres contribute 41 per cent to the total consumer furniture market. A and B type cities together
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contribute 33 percent of the total market.
c. Future of the industry
According to a World Bank study, the organised furniture industry is expected to grow by 20 per cent a year and India, Russia and Brazil will witness a boom.
2. PROFILE OF THE ORGANIZATION
2.1 ORIGIN OF THE ORGANIZATION Hi-Flex Modular & Seating Solutions Pvt Ltd. came into existence on 9th February, 2008.Mr.Sabarigiri Varadha is the Chairman and Managing Director of the company. It has its head office at J.P.Nagar 7 Phase , Bangalore.
2.2 GROWTH AND DEVELOPMENT OF THE ORGANIZATION The company has come up with a factory at J.P.Nagar – 9th Phase, Bangalore.With an area of 5000 square feet,the factory is well equipped with all the equipments used for manufacture of furniture (sofas, tables, cupboard).This is the 2ndfactory at Bangalore.One factory is at Mysore Road which is used to manufacture chairs.And the most important development for the company is the sanction of 23.4 acres of
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land at Pondicherry SEZ,the work for which will start in another 3-4 months.
2.3 PRESENT STATUS OF THE ORGANIZATION
The current strength of the workers are around 50 which will increase in the near future.The production is going on in full swing and the company got many orders from clients worth lakhs of rupees.The future is good for the company.
2.4 FUTURE PLANS OF THE ORGANIZATION
The company is coming up with a furniture showroom in Bangalore which is spread over 2000 square feet.It is also planning to expand in the northern part of India in the near future.It plans to have a huge network of dealers and corporates as its customers.
2.5 FUNCTIONAL DEPARTMENTS OF THE ORGANIZATION
i) ii) iii) iv)
Production Department Finance Department Marketing Department Human Resource Department
2.6 ORGANIZATION STRUCTURE AND ORGANIZATION CHART
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SABARIGIRI VARADHA (CHAIRMAN) PARAS RUGHANI (MARKETING HEAD) SATHEESH N. (FINANCE HEAD) SUNDEEP SHABAD (HR HEAD)
MARKETING EXECUTIVES
FINANCE EXECUTIVES
HR EXECUTIVES
2.7PRODUCT AND SERVICE PROFILE OF THE ORGANIZATION
HMS is into manufacture of Chairs, Sofas, Executive Tables, Beds, Dining Tables, Modular Kitchens, Modular Workstations and other allied products with a competitive edge in terms of price, durability, ergonomics, functionality and aesthetical value. Itprovides free Transportation/delivery anywhere in India.Also it provides free after sales for the next 2 years.
2.8 MARKET PROFILE OF THE ORGANIZATION
The company has an infrastructure set up to produce nearly 15000 home & office, seating and modular systems a Month, with a state of the art assembly line. It has 16+ years of Expertise and Domain Knowledge of the products and more than 3000+ fabrics and leatherettes to choose from.
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Rich and high profile client base that gives the companythe capability of handling diverse industry searches. Strong marketing teams are there to market the product across India.
3. DISCUSSIONS ON TRAINING
3.1 STUDENT’S WORK PROFILE(ROLE AND RESPONSIBILITIES)
I am dealing with the investment decision on behalf of the company.My job is to study and analyse the stock market so that investments can be made in stocks,mutual funds,gold and other financial products. Wecollect information relating to the market from the web and make decisions whether to invest in a particular stock or not,whether the stock is overvalued or undervalued.The P/E ratio and EPS of different companies were compared to come to the conclusion that which stock is a hot pick.Also the analysis of financial statements and the future projects of the company were studied to find out the financial strength of the company. My primary job is to earn as much wealth for the company by investing a part of the operating profit in the financial markets.
3.2 DESCRIPTION OF LIVE EXPERIENCE
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The first thing wedid was, weenquired about different mutual fund houses by calling them and taking appointments with them.Then we had meetings with different mutual fund house like SBI mutual fund,DBS Cholamandalam,Kotak Opportunities fund,TATA mutual fund,Principle PNB mutual fund,Sundaram mutual fund,etc.They gave a good insight on which product schemes would suit according to our investing needs(we wanted capital appreciation).So they told us about open ended growth schemes and also gave a suggestion to park our extra funds on liquid assets like short term liquid funds like 90 days or 182 days advances. We also enquired about different broking firms as investing in stock market was also our objectives.Kotak Mahindra Bank was the choice for us for its low brokerages but also for its good customer services.
3.3 STUDENT’S CONTRIBUTION TO ORGANIZATION
I have been working with HMSS Pvt. Ltd. for the last 4 months and I have been carrying out various responsibilities other than the investment part like finance,production,marketing,Human Resource etc. I helped the finance team by maintaing the daily expenses of marketing people and also opened the bank accounts of most of the employees. I also looked after the production unit like stock maintenance,material handling,purchase of raw materials,check wastages,etc.I used to maintain how much of material is coming in like plywood,silverwood,
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fevicol,nails,foams all required for manufacturing of sofas and almirahs and other furnishing items.
Apart from that our MD gave us the assignment to find about the SEZ in Dubai as we were thinking of expansion.We met Mr.Nishant Kumar,the Marketing head of Bangalore in charge of that Dubai SEZ.It was a very satisfying meeting as he told us different formalities required to set up a office there.
4. STUDY OF THE SELECTED RESEARCH PROBLEM
Since our companywanted returns in excess of 30%, we were looking for direct equities and mutual funds(open ended growth funds).I did the research on different fund houses,their past performance,their corpus invested,the fund manager involved with the fund. We did research on different growth funds of different companies,all of them open -ended.The fund was evaluated on the basis of past data and most important with the help of various ratios like fama, beta, sortino, treynor,sharpe,correlation,standard deviation,etc.The meaning of various ratios are given as follows:
Sortino ratio
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A variation of the Sharpe ratio which differentiates harmfulvolatilityfrom volatility in general by replacing standard deviationwith downside deviation in the denominator. Thus, the SortinoRatiois calculated by subtracting the riskfreerate from thereturn of the portfolioand then dividing by the downsidedeviation. The Sortino ratiomeasuresthe return to "bad" volatility. This ratio allowsinvestors to assess risk in a better manner than simply looking atexcess returns to total volatility, since such a measure does not consider how often thepriceof thesecurity rises as opposed to how often it falls. A large Sortino Ratio indicates a lowrisk of large lossesoccurring.
Treynor Index
Ameasureof a portfolio'sexcess returnperunitof risk, equal to the portfolio's rate of returnminus the risk-free rateof return, divided by the portfolio's beta. This is a similar ratioto the Sharpe ratio, except that the portfolio's beta is considered the measure of risk as opposed to the varianceof portfolioreturns. This is useful for assessing the excess return from each unit of systematic risk, enablinginvestors to evaluate how structuring the portfolio to different levels of systematic risk will affect returns.
Sharpe Ratio
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A ratio developed by Nobel laureate William F. Sharpe to measure riskadjusted performance. The Sharpe ratio is calculated by subtracting the risk-free rate - such as that of the 10-year U.S. Treasury bond - from the rate of return for a portfolio and dividing the result by the standard deviation of the portfolio returns. The Sharpe ratio tells us whether a portfolio's returns are due to smart Investment decisions or a result of excess risk. This measurement is very useful because although one portfolio or fund can reap higher returns than its peers, it is only a good investment if those higher returns do not come with too much additional risk. The greater a portfolio's Sharpe ratio, the better its risk-adjusted performance has been.
Beta
A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Also known as "beta coefficient". Beta is calculated using regression analysis, and you can think of beta as the tendency of a security's returns to respond to swings in the market. A beta of 1 indicates that the security's price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicates that the security's price will be more volatile than the market. For example, if a stock's beta is 1.2, it's theoretically 20% more volatile than the market.
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Many utilities stocks have a beta of less than1. Conversely, most high-tech Nasdaq-based stocks have a beta of greater than 1, offering the possibility of a higher rate of return, but also posing more risk.
Standard Deviation
A measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard deviation is calculated as the square root of variance. In finance, standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility. Standard deviation is also known as historical volatility and is used by investors as a gauge for the amount of expected volatility. Standard deviation is a statistical measurement that sheds light on historical volatility. For example, a volatile stock will have a high standard deviation while the deviation of a stable blue chip stock will be lower. A large dispersion tells us how much the return on the fund is deviating from the expected normal returns
Based on these ratios,we evaluated various funds which are as follows:
BIRLA SUNLIFE MF
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(INDEX –GROWTH)
Type of Open Ended Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size( in Rs. Cr.) Equity
Fund Manager SIP STP Growth SWP Sep 17, 2002 Expense 10 ratio(%) 41.31 as on May 30, 2008 Portfolio Turnover Ratio(%)
Ajay Garg .
1.51
484
LastDividendDeclared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Exit Load
NA 5000 Daily Daily Entry Load is 0%. Exit Load is 0%.
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Increase/Decrease in Fund Size since Apr 30, 2008 (Rs. 5.95 in crores)
Latest NAV Benchmark Index - S&P Nifty 52 – Week High 52 - Week Low
44.91 as on Jun 9, 2008 4,500.95 as on Jun 9, 2008 64.10 as on Jan 8, 2008 40.91 as on Jun 13, 2007
SCHEME PERFORMANCE (%) AS ON JUN 9, 2008 1 Month -10.70 3 Months -7.47 6 Months -26.52 1 Year 8.83 3 Years 27.38 5 Years 32.93 Since Inception 29.98
Mean Standard Deviation
0.97 3.77
Treynor Sortino
0.84 0.37 1.02
0.23 Sharpe Beta 1.03 Correlation
0.02 Fama
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Cash & Equity Debt Equivalent 71.77 0.00 28.23
DBS CHOLAMANDALAM (OPPORTUNITIES-CUMULATIVE)
Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size (in Rs. Cr.)
Open Ended Equity Growth Nov 8, 1997 SIP STP 10 SWP 67.8 as on May 30, 2008 Expense ratio(%) Portfolio Turnover Ratio(%) 335 1.89 Fund Manager Bajrang Kumar Bafna .
LastDividendDeclared Minimum Investment (Rs)
NA 3000
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Purchase Redemptions NAV Calculation
Daily Daily Amount Bet. 0 to 29999999 then Entry load
Entry Load
is 2.25%. If redeemed bet. 0 Year to 6 Year; and Amount Bet. 0 to 29999999 then Exit load is 1%. If redeemed bet. 0 Months to 6
Exit Load
Months; and Amount Bet. 30000000 to 49999999 then Exit load is 0.5%. and Amount greater than 50000000 then Exit load is 0%.
Increase/Decrease in Fund Size since Apr 30, 2008 (Rs. in 0.09 crores)
Latest NAV Benchmark Index – S&P Nifty 52 - Week High 52 - Week Low
34.83 as on Jun 9, 2008 4,500.95 as on Jun 9, 2008 53.21 as on Jan 7, 2008 28.91 as on Jun 13, 2007
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SCHEME PERFORMANCE (%) AS ON JUN 9, 2008 Since 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years Inception -15.32 -8.08 -27.80 18.76 29.44 35.83 12.57
Mean Standard Deviation Sharpe Beta
1.33 3.71 0.33 0.96
Treynor Sortino Correlation Fama
1.28 0.55 0.95 0.39
Cash & Equity Debt Equivalent 94.27 0.00 5.73
DEUTSCHE MUTUAL FUND
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(ALPHA-GROWTH)
Type of Open Ended Scheme Nature Option Inception Date Face Value 10 (Rs/Unit) Fund Size (in Rs. Cr.) 137.76 as on May 30, 2008 Equity Growth Jan 21, 2003
Fund Manager SIP STP SWP Expense ratio(%) Portfolio Turnover Ratio(%)
Aniket Inamdar
2.45
145
LastDividendDeclared Minimum Investment (Rs) Purchase Redemptions NAV Calculation
NA 5000 Daily Daily Amount Bet. 0 to 19999999 then Entry load
Entry Load
is 2.25%. and Amount greater than 20000000 then Entry load is 0%.
Exit Load
If redeemed bet. 0 Months to 6 Months; and
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Amount Bet. 0 to 99999999 then Exit load is 0%. If redeemed bet. 0 Months to 6 Months; and Amount greater than 100000000 then Exit load is 2.25%.
Increase/Decrease in Fund Size since Apr 30, 2008 (Rs. in 20.23 crores)
Latest NAV Benchmark Index - S&P Nifty 52 - Week High 52 – Week Low
64.97 as on Jun 13, 2008 4,517.10 as on Jun 13, 2008 87.72 as on Jan 4, 2008 53.43 as on Jun 18, 2007
SCHEME PERFORMANCE (%) AS ON JUN 13, 2008 1 Month 3 Months 0.82 Since 6 Months 1 Year 3 Years 5 Years Inception -21.77 23.45 35.39 44.59 41.44
-6.91
Mean Standard Deviation
1.10 3.56
Treynor
1.04
Sortino
0.46
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Sharpe Beta
0.28 0.96
Correlation Fama
0.95 0.19
Equity Debt 93.88 0.00
Cash & Equivalent 6.12
DEUTSCHE MUTUAL FUND (INVESTMENT OPPORTUNITY)
Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Last Divdend Declared
Open Ended Equity Growth Jan 29, 2004 10 119.21 as on May 30, 2008
Fund Manager SIP STP SWP Expense ratio(%) Portfolio Turnover Ratio(%)
Aniket Inamdar .
2.25 186
NA
Minimum Investment 5000 (Rs)
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Purchase Redemptions NAV Calculation Entry Load
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 99999999 then Exit load is 0%. If redeemed bet. 0 Months to 6 Months; and Amount greater than 100000000 then Exit load is 2.25%.
Exit Load
Increase/Decrease in Fund Size since Apr 30, 2008 (Rs. in crores)
27.75
Latest NAV Benchmark Index BSE200 52 - Week High 52 - Week Low
32.91 as on Jun 13, 2008 1,879.05 as on Jun 13, 2008 46.93 as on Jan 4, 2008 24.87 as on Jun 18, 2007
SCHEME PERFORMANCE (%) AS ON JUN 13, 2008 Since 1 Month -7.22 3 Months 0.24 6 Months -23.91 1 Year 34.27 3 Years 38.49 5 Years Inception NA 31.29
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Mean Standard Deviation Sharpe Beta
1.38 3.70 0.35 0.96
Treynor Sortino Correlation Fama
1.33 0.57 0.95 0.44
Cash& Equity Debt Equivalent 94.88 0.00 5.12
UTI MUTUAL FUND (INFRASTRUCTURE FUND)
Type of Open Ended Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size (in May 31, 2008 10 1558.44 as on Equity Growth Apr 7, 2004
Fund Manager SIP STP SWP Expense
Sanjay Dongre .
1.92 ratio(%) Portfolio Turnover
0.3905
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Rs. Cr.) Ratio(%) LastDividendDeclared Minimum Investment (Rs) Purchase Redemptions NAV Calculation 12 % as on Mar 11, 2005 5000 Daily Daily Amount Bet. 0 to 19999999 then Entry load Entry Load is 2.25%. and Amount greater than
20000000 then Entry load is 0%. If redeemed bet. 0 Days to180 Days; and Amount Bet. 0 to 19999999 then Exit load is Exit Load 1%. If redeemed bet. 0 Days to 180 Days; and Amount greater than 20000000 then Exit load is 0.5%.
Increase/Decrease in Fund Size since Apr 30, 2008 (Rs. in -81.09 crores)
Latest NAV Benchmark Index – BSE100
32.10 as on Jun 13, 2008 8,017.61 as on Jun 13, 2008
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52 - Week High 52 - Week Low
50.70 as on Jan 4, 2008 29.86 as on Jun 18, 2007
SCHEME PERFORMANCE (%) AS ON JUN 13, 2008 1 Month -8.68 3 Months -8.88 6 Months -33.80 1 Year 9.05 3 Years 35.16 5 Years NA Since Inception 32.58
Mean
1.25 1.10 Treynor
Standard Deviation Sharpe Beta
3.84 Sortino 0.30 Correlation 1.04 Fama 0.18 1.02
0.48
Cash & Equity Debt Equivalent
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82.10
0.73
17.17
TATA MUTUAL FUND (PURE EQUITY FUND)
Type of Scheme Nature Option Inception Date Face Value 10 (Rs/Unit) 339.09 as on Open Ended
Fund Manager SIP Equity Growth May 7, 1998 STP SWP Expense ratio(%)
M Venugopal .
2.33
Fund Size in Rs. Cr.
Portfolio May 30, 2008 Turnover Ratio(%) 84
Last Dividend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load
20 % as on Jul 24, 2000 5000 Daily Daily
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Amount Bet. 0 to 9999999 then Entry load is 2.25%.and Amount greater than 10000000 then Entry load is 0%. If redeemed bet. 0 Months to 6 Months; and Exit Load Amount Bet. 0 to 9999999 then Exit load is 1%. and Amount greater than 10000000 then Exit load is 0%.
Increase/Decrease in Fund Size since Apr 30, 2008 (Rs. in crores)
-2.79
Latest NAV Benchmark Index - BSE Sensex 52 - Week High 52 - Week Low
71.99 as on Jun 13, 2008 15,189.62 as on Jun 13, 2008 102.91 as on Jan 4, 2008 65.01 as on Jun 18, 2007
SCHEME PERFORMANCE (%) AS ON JUN 13, 2008 1 Month -7.28 3 Months -1.60 6 Months -26.15 1 Year 12.15 3 Years 29.97 5 Years 46.08 Since Inception 23.66
Mean Standard
1.03
Treynor
0.99
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3.54 Deviation
Sortino Correlation
0.42 0.94 0.13
Sharpe Beta
0.26 Fama 0.94
Equity Debt 87.00 0.00
Cash & Equivalent 13.00
TATA MUTUAL FUND (INFRASTRUCTURE FUND)
Type of Open Ended Scheme Nature Option Inception Date Face Value 10 (Rs/Unit) Fund Size in Rs. 2566.29 as on May 30, 2008 Equity Growth Dec 22, 2004
Fund Manager SIP STP SWP Expense
M Venugopal .
2.25 ratio(%) Portfolio Turnover
68
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Cr. Ratio(%)
LastDividendDeclared Minimum Investment (Rs) Purchase Redemptions NAV Calculation
NA 5000 Daily Daily Amount Bet. 0 to 19999999 then Entry
Entry Load
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
Exit Load
then Exit load is 1%. and Amount greater than 20000000 then Exit load is 0%.
Increase/Decrease in Fund Size since Apr 30, 2008 (Rs. in -80.29 crores)
Latest NAV Benchmark Index - BSE Sensex
30.24 as on Jun 13, 2008 15,189.62 as on Jun 13, 2008
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52 - Week High 52 - Week Low
45.52 as on Jan 4, 2008 25.41 as on Jun 18, 2007
SCHEME PERFORMANCE(%) AS ON JUN 13, 2008 Since 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years Inception -8.04 -3.99 -31.02 21.33 38.84 NA 36.91
Mean Standard
1.31
Treynor Sortino
1.19 0.50 1.01 0.34
3.86 Deviation Sharpe Beta 0.31 1.01 Correlation Fama
Cash & Equity Debt Equivalent 72.82 0.00 27.18
JM FINANCIAL MUTUAL FUND
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(BASIC FUND)
Type of Open Ended Scheme Nature Option Inception Date Equity Growth Jun 2, 1997
Fund Manager SIP STP SWP Expense
Asit Bhandarkar .
2.02 ratio(%) Face Value 10 (Rs/Unit) Fund Size in Rs. Cr. 1105.5 as on May 30, 2008 Portfolio Turnover Ratio(%) Last Dividend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation 10 % as on Dec 28, 2004 5000 Daily Daily Amount Bet. 0 to 29999999 then Entry Entry Load load is 2.25%. and Amount greater than 30000000 then Entry load is 0%. Exit Load 36.04
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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%.
Increase/Decrease in Fund Size since Apr 30, 2008 (Rs. in -93.53 crores)
Latest NAV Benchmark Index 52 - Week High 52 - Week Low
24.50 as on Jun 13, 2008 NA 40.86 as on Jan 2, 2008 22.86 as on Jun 18, 2007
SCHEME PERFORMANCE (%) AS ON JUN 13, 2008 Since 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years Inception -11.14 -7.68 -35.69 9.04 32.34 29.70 17.08
Mean Standard
1.54
Treynor Sortino
1.92 0.68 0.75
3.27 Deviation Correlation
38
Sharpe Beta
0.44 0.75
Fama
0.70
Cash & Equity Debt Equivalent 91.87 0.00 8.13
SUNDARAM MUTUAL FUND (BALANCED FUND)
Type of Open Ended Scheme Nature Option Inception Date Equity & Debt Growth May 25, 2000 SIP STP SWP Face Value (Rs/Unit) ratio(%) Fund Size(in 42.02 as on May 30, 2008 Portfolio 10 Expense Fund Manager
Satish Ramanathan , Rahul Pal .
2.50
17
39
Rs. Cr.) Turnover Ratio(%) Last Dividend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation NA
5000 Daily Daily Amount Bet. 0 to 19999999 then Entry load
Entry Load is 2.25%. If redeemed bet. 0 Months to 6 Months; Exit load is 1%. If redeemed bet. 6 Months to 12 Exit Load Months; and Amount Bet. 0 to 19999999 then Exit load is 1%. If redeemed after 12 Months; Exit load is 0%.
Increase/Decrease in Fund Size since Apr 30, 2008 (Rs. in crores)
-1.98
Latest NAV Benchmark Index - Crisil Balanced Fund Index
36.21 as on Jun 13, 2008
2,767.11 as on Jun 11, 2008
40
52 - Week High 52 - Week Low
46.88 as on Jan 7, 2008 33.91 as on Aug 21, 2007
SCHEME PERFORMANCE (%) AS ON JUN 13, 2008 Since 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years Inception -6.06 -3.93 -21.20 7.01 19.92 26.36 17.28
Mean Standard Deviation Sharpe Beta
0.83 2.58
Treynor Sortino Correlation
0.70 0.46 1.06 0.16
0.28 1.03
Fama
Cash& Equity Debt Equivalent 66.87 19.01 14.12
SUNDARAM MUTUAL FUND
41
(GROWTH FUND)
Type of Open Ended Scheme Nature Option Inception Date Face Value 10 (Rs/Unit) Fund Size (in Rs. Cr.) 177.07 as on May 30, 2008 Equity Growth Feb 15, 1997
Fund Manager SIP STP SWP Expense
J. Venkatesan .
2.39 ratio(%) Portfolio Turnover Ratio(%) 30 % as on May 16, 2000 2000 Daily Daily Amount Bet. 0 to 19999999 then Entry Entry Load load is 2.25%. If redeemed bet. 0 Months to 6 Exit Load Months; Exit load is 1%. If redeemed 111
LastDividendDeclared Minimum Investment (Rs) Purchase Redemptions NAV Calculation
42
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%.
Increase/Decrease in Fund Size since Apr 30, 2008 (Rs. in crores)
1.07
Latest NAV Benchmark Index - BSE200 52 - Week High 52 - Week Low
80.76 as on Jun 13, 2008 1,879.05 as on Jun 13, 2008 120.70 as on Jan 4, 2008 68.45 as on Aug 21, 2007
SCHEME PERFORMANCE (%) AS ON JUN 13, 2008 Since 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years Inception -5.90 0.25 -29.55 19.70 32.20 41.93 21.21
Mean Standard
1.22
Treynor Sortino
1.04 0.45 1.07
4.11 Deviation Correlation
43
Sharpe Beta
0.27 Fama 1.08 0.19
Cash& Equity 89.56 Debt Equivalent 0.00 10.44
SUNDARAM MUTUAL FUND (SELECT FOCUS)
Type of Scheme Nature Option Inception Date Face Value 10 (Rs/Unit) 858.43 as on Open Ended
Fund Manager SIP Equity Growth Jul 19, 2002 STP SWP Expense
Srividhya Rajesh .
2.26 ratio(%) Portfolio Turnover 122
Fund Size ( in Rs. Cr.)
Ratio(%) May 30, 2008
44
Last Dividend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation
NA 5000 Daily Daily Amount Bet. 0 to 19999999 then Entry
Entry Load load is 2.25%. If redeemed bet. 0 Months to 6 Months; Exit load is1%. If redeemed Exit Load bet. 6 Months to12 Months; and Amount Bet. 0 to 19999999 then Exit load is 1%. If redeemed after 12 Months; Exit load is 0%.
Increase/Decrease in Fund Size since Apr 30, 2008 (Rs. in -11.57 crores)
LatestNAV Benchmark Index - S&P Nifty
74.92 as on Jun 13, 2008 4,517.10 as on Jun 13, 2008
45
52 - Week High 52 - Week Low
112.48 as on Jan 4, 2008 61.16 as on Aug 21, 2007
SCHEME PERFORMANCE (%) AS ON JUN 13, 2008 Since 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years Inception
-6.00
-1.23
-30.02
23.98
38.83
43.87
40.87
Mean Standard
1.30
Treynor Sortino
1.05 0.48 1.13 0.24
4.23 Deviation Sharpe Beta 0.28 1.13 Correlation Fama
Cash& Equity Debt Equivalent 82.70 0.00 17.30
SUNDARAM MUTUAL FUND
46
(SELECT MID-CAP)
Type of Open Ended Scheme Nature Option Inception Date Face Value 10 (Rs/Unit) Fund Size (in Rs. Cr.) 1692.79 as on May 30, 2008 ratio(%) Portfolio Turnover Ratio(%) Equity Growth Jul 19, 2002 SIP STP SWP Expense Fund Manager
Satish Ramanathan .
1.89
26
Last DividendDeclared Minimum Investment (Rs) Purchase Redemptions NAV Calculation
NA 5000 Daily Daily Amount Bet. 0 to 49999999 then
Entry Load
Entry load is 2.25%. and Amount
47
Greater than 50000000 then Entry load is 0%. If redeemed bet. 0 Months to 12 Months; and Amount Bet. 0 to Exit Load 49999999 then Exit load is 1%. and Amount greater than 50000000 then Exit load is 0%.
Increase/Decrease in Fund Size since Apr 30, 2008 (Rs. in -112.21 crores)
Latest NAV Benchmark Index - BSE MID CAP 52 - Week High 52 - Week Low
96.39 as on Jun 13, 2008 6,228.17 as on Jun 13, 2008 155.36 as on Jan 2, 2008 91.60 as on Mar 24, 2008
SCHEME PERFORMANCE (%) AS ON JUN 13, 2008 Since 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years Inception -8.38 -4.29 -32.85 4.28 31.96 50.26 47.04
48
Mean Standard
1.10
Treynor Sortino
1.29 0.50 0.78 0.26
3.28 Deviation Sharpe Beta 0.30 0.77 Correlation Fama
Cash & Equity Debt Equivalent 89.43 0.00 10.57
SUNDARAM MUTUAL FUND (SMILE FUND)
Type of Scheme Nature Option Inception Date Open Ended Fund Manager
Mr. S Krishnakumar . SIP STP SWP
Equity Growth Jan 21, 2005
49
Face Value (Rs/Unit) Fund Size (in Rs. Cr.)
10
Expense ratio(%)
2.37
223.17 as on May 30, 2008
Portfolio Turnover Ratio(%) 149
LastDividend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation
NA 5000 Daily Daily Amount Bet. 0 to 19999999 then
Entry Load 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 Exit Load Amount Bet. 0 to 19999999 then Exit load is 1%. If redeemed after 12 Months; Exit load is 0%.
Increase/Decrease in Fund Size since Apr 30, 2008 (Rs. in crores)
-6.83
50
Latest NAV
22.81 as on Jun 13, 2008 5,964.63 as on Jun 13,
Benchmark Index - BSE 500 2008 52 - Week High 52 - Week Low 35.59 as on Jan 4, 2008 19.01 as on Aug 21, 2007
SCHEME PERFORMANCE (%) AS ON JUN 13, 2008 Since 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years Inception -8.12 -1.66 -30.73 20.94 26.31 NA 28.13
Mean Standard
1.34
Treynor Sortino
1.29 0.52 0.96 0.37
3.84 Deviation Sharpe Beta 0.32 0.95 Correlation Fama
Cash& Equity Debt Equivalent 94.79 0.00 5.21
51
SBI MUTUAL FUND (CONTRA FUND)
Type of Scheme Nature Option Inception Date Open Ended
Fund Manager SIP Equity Growth Jul 3, 1999 STP SWP Expense
Pankaj Gupta .
1.87 ratio(%) Face Value (Rs/Unit) Fund Size (in Rs. Cr.) 10 2385.04 as on Ratio(%) May 30, 2008 Portfolio Turnover 10
LastDividendDeclared Minimum Investment (Rs) Purchase Redemptions NAV Calculation
21 % as on Nov 10, 2004 2000 Daily Daily Amount Bet. 0 to 49999999 then Entry
Entry Load
load is2.25%. and Amount greater than
52
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 Exit Load 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%.
Increase/Decrease in Fund Size since Apr 30, 2008 (Rs. in crores)
-93.9
SCHEME PERFORMANCE (%) AS ON JUN 13, 2008 Since 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years Inception -8.27 -3.63 -28.16 9.74 35.60 56.88 21.21
Mean Standard
1.13
Treynor Sortino
1.18 0.48 0.87 0.27
3.36 Deviation Sharpe Beta 0.31 0.87 Correlation Fama
53
Cash & Equity Debt Equivalent 88.16 0.63 11.21
KOTAK MUTUAL FUND (OPPORTUNITIES FUND)
Type of Open Ended Scheme Nature Option Inception Date Face Value 10 (Rs/Unit) ratio(%) Fund Size (in Rs. Cr.) 859.61 as on Portfolio May 31, 2008 Turnover Ratio(%) Last DividendDeclared NA Expense Equity SIP Growth STP Aug 25, 2004 SWP Fund Manager
Krishna Sanghvi , Anurag Jain .
2.23
120.7
54
Minimum Investment (Rs) Purchase Redemptions NAV Calculation
5000 Daily Daily Amount Bet. 0 to 49999999 then Entry
Entry Load
load is 2.25%. and Amount greater than 50000000 then Entry load is 0%. Ifredeemedbet. 0 Months to 6 Months;
Exit Load
Exit load is 1%.
Increase/Decrease in Fund Size since Apr 30, 2008 (Rs. in 36.03 crores)
Latest NAV Benchmark Index - CNX500 52 - Week High 52 - Week Low
36.74 as on Jun 13, 2008 3,634.80 as on Jun 13, 2008 56.28 as on Jan 4, 2008 30.55 as on Aug 21, 2007
55
SCHEME PERFORMANCE (%) AS ON JUN 13, 2008 Since 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years Inception -8.13 -3.38 -30.03 20.84 35.87 NA 41.33
Mean Standard
1.40
Treynor Sortino
1.41 0.60 0.92 0.50
3.53 Deviation Sharpe Beta 0.37 0.92 Correlation Fama
Cash & Equity Debt Equivalent 91.87 5.99 2.14
CONCLUSION A fund scheme is decided by taking into consideration the fund house ‘s performance,amount of corpus,its performance over the past 5 years. Also among the various ratios,sortino ratio,beta,sharpe and standard
56
deviationare important.They show how volatile the fund is;is the returns due to excessive risks or due to logical investments by the fund manager. On the basis of the above criteria,SUNDARAM SELECT FOCUS MUTUAL FUND is the right fund to invest into.
5. SUMMARY AND CONCLUSIONS
5.1 SUMMARY OF THE LEARNING EXPERIENCE
I learnt a lot while working in the organization: ? I learnt how the corporate actually works. ? I learnt how to apply theoretical knowledge in management for decision making. ? I learnt how the employees are motivated to get the work done. ? I learnt how to conduct in the organization which is very important for any employee.
57
doc_541656801.docx
A fixed deposit (FD) is a financial instrument provided by Indian banks which provides investors with a higher rate of interest than a regular savings account, until the given maturity date . It may or may not require the creation of a separate account. It is known as a term deposit or time deposit in Canada, Australia, New Zealand, and the US, and as a bond in the United Kingdom.
PROJECT REPORT
AT
HI-FLEX MODULAR AND SEATING SOLUTIONS PVT. LTD.,BANGALORE
A Project Report submitted in partial fulfillment of the For the award of the degree of
MASTER OF BUSINESS ADMINISTRATION (Industry Integrated)
To MADURAI KAMARAJ UNIVERSITY,MADURAI
BY ADITYA KUMAR Reg No.:A7753002 Under the guidance of PROF.SUNIL D’ANTO
BANGALORE SCHOOL OF BUSINESS J.P.NAGAR-7TH PHASE BANGALORE-78
JUNE 2008
1
CERTIFICATE
This is to certify that the Project Report at HI-FLEX MODULAR AND SEATING SOLUTIONS PVT. LTD,BANGALORE
Submitted in partial fulfillment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION (Industry Integrated)
To
MADURAI KAMARAJ UNIVERSITY,MADURAI
Is a record of bonafide training carried out by ADITYA KUMAR
Under my supervision and guidance and that no part of this report has been submitted for the award of any other degree/diploma/ fellowship or similar titles or prizes.
FACULTY GUIDE
Signature: Name
ROF. SUNIL D’ANTOQualifications:Signature & seal of the learning Center
2
STUDENT’S DECLARATION
I hereby declare that the project report conducted at
HI-FLEX MODULAR AND SEATING SOLUTIONS PVT LTD.
Under the guidance of PROF.SUNIL’D ANTO
Submitted in partial fulfillment of requirements for the Degree of
MASTER OF BUSINESS ADMINISTRATION (Industry Integrated) TO MADURAI KAMRAJ UNIVERSITY,MADURAI
Is my original work and the same has not been submitted for the Award of any other Degree/Diploma/Fellowship or other similar Titles or Prizes
Place: Date:
ADITYA KUMAR Reg.No.A7753002
3
CONTENTS
CHAPTER 1. INTRODUCTION 1.1 General Introduction 1.2 Objectives of the study 1.3 Industry Profile a.Origin and development of the industry b.Growth and present status of the industry c.Future of the industry
CHAPTER 2. PROFILE OF THE ORGANIZATION 2.1 Origin of the organization 2.2 Growth and development of the Organization 2.3 Present status of the Organization 2.4 Future plans of the Organization 2.5Functional Departments of the Organization 2.6 Organizational structure and Organization chart 2.7 Product and service profile of the Organization 2.8 Market profile of the Organization
CHAPTER 3. DISCUSSIONS ON TRAINING 3.1 Student’s work profile (Role and Responsibilities) 3.2 Description of live experience 3.3 Student’s contribution to Organization
CHAPTER 4 STUDY OF SELECTED RESEARCH PROBLEEM 4.1 Statement of research problem 4.2 Statement of research objectives 4.3 Research design and methodology 4.4 Analysis of data 4.5 Summary of findings
CHAPTER 5. SUMMARY AND CONCLUSIONS 5.1 Summary of Learning Experience
4
Hi-Flex Modular & Seating Solutions Private Limited
Retailing Comfort @ Wholesale Prices
CERTIFICATE OF THE ORGANIZATION
To The Training Officer, National Institute of Applied Management. Bangalore/New Delhi
This is to certify thatMr. ADITYA KUMARof MBA(Industry Integrated)course of Madurai Kamaraj University at BANGALORE SCHOOL OF BUSINESS,Learning Centre has undergone management training at our organization from 17-03-08 to 27-06-08.
His performance during the training period was satisfactory/good.
Authorized Signatory
Hi-Flex Modular & Seating Solutions Private Limited
No.44/8, 1 & 2 Floor, First Main – RBI Layout, th J P Nagar 7 Phase, Bangalore – 560078. Tel: 080 – 41602460 Fax: 080 – 41602461 www.hmssquare.com Retailing Comfort @ Wholesale Prices
st nd
5
ACKNOWLEDGEMENT
The satisfaction and euphoria that accompany the successful completion of the project would be incomplete without mentioning the people who made it possible,whose constant guidance and encouragement crowned out efforts with success.
I am grateful to MR.S.P.REDDY,DIRECTOR,BSBfor having given me an opportunity to carry out the project work.
I also take this opportunity to express my heartful gratitude PROF.SUNIL D’ANTO,BSBfor his valuable suggestions,guidance and support through out the project.
I am gratefulto MR.SABARIGIRI VARADHA,CHAIRMAN(HI-FLEX MODULAR &SEATING SOLUTIONS PVT. LTD) for his constant guidance during the entire period of the dissertation.
I am grateful to all the faculties of BSB for their constant guidance and support during the stay.
At the end,I want to thank my parents and my friendsfor their support throughout the project.
ADITYA KUMAR Reg. No.A7753002
6
1. INTRODUCTION
1.1 GENERAL INTRODUCTION
Hi-Flex Modular&Seating Solutions Private Limited is dedicated in providing its clientele a range of quality modular and seating solutions. HMS2 producesChairs, Sofas, Executive Tables, Beds, Dining Tables, Modular Kitchens, Modular Workstations and other allied products with a competitive edge in terms of price, durability, ergonomics, functionality and aesthetical value. HMS2has its aim to improve the working conditions in the home and office, thereby increasing the productivity and efficiency of human resources round the clock.
1.2 OBJECTIVES OF THE STUDY To invest the surplus of the company ‘s corpus in different financial products like equity,derivatives,mutual funds,bullion and bonds in order to increase the income of the company from sources other than from the core activity of the business.The objective is to create wealth for the company so that it has its own surplus for carrying out expansion and modernization plans,and it does not have to rely on borrowed funds/loans.
7
1.3 INDUSTRY PROFILE
a.Origin and development of the industry
Local tradition and culture contributed to the development of ornamental woodwork – for palaces, temples, public houses, works of arts, etc.The main thrust to furniture development was given by foreign influence. When the Portuguese,the first Europeans to come to India, arrived, they Did not find any familiar furniture, it was them, and later, the Dutch, the French and the English, who inspired the composition of domestic furniture to cater to their settlements. The Indian carpenter turned out to be precocious in adapting foreign designs and inducing in them an indigenous flavor of craftsmanship.It was the play of these influences that gave birth to the Mughal style, the Goanese, the Indo-Dutch style, the use of ebony and ivory in the manner of Chippendale and Sheraton. English predominance since the 18th century resulted in English influence In furniture styling, and this became so popular that even Indian rulers became patrons.A tropical country with about eighty varieties of hardwood available for woodwork, India has an old tradition of furniture making. Subsequent to the English influence who cultivated teak as a ‘royal tree’ for shipping industry (teak is tremendously resilient to water and weather), teak assumed tremendous popularity for quality woodwork. Almost all large articles were composed on wood. Royal houses and rich households have always been the traditional patrons of the furniture industry, and even
8
today the royal palaces strewn across the four corners of India feature some of the most illustrious examples of indigenous woodwork. Frederick Litchfield’s Illustrated History of Furniture (1893) mentions many such marvels that still mesmerize. Like the two wooden teak doors sent as gift to the Indian Government and now kept in the National Museum (Kolkata). Or the shisham wood (rosewood) carved window at Amritsar with its Overhanging cornice, ornamental arches with pillars and intricate work on the body. Royal gifts sent to the Queen and the King as well as the Princes also showed an obsession with details that is unique to India. Even today, much of British royal furniture is of Indian vintage. In the years since the British left the furniture industry in India has evolved. Utility and simplicity gained primacy over art. Price considerations have driven down ornamentation to the minimum, and cheaper wood varieties have come to be used to cater to the huge low cost demand. Yet, in niche areas the old forms of furniture still continue to be crafted. In many places, like Rajasthan, that still has a royal ethos in a Republican India, with its dozens of Palaces’, the old form of furniture making is still preserved. Here, one can take a time travel and find works of an earlier day being crafted with the same expertise. Exported around the world wherever antique and ornamental furniture is appreciated, the Jodhpur furniture forms the focal point of this industry. Nowadays foreign designs are adapted with local styles that are hugely popular with Western customers.
9
b.Growth and present status of the industry
The Indian furniture industry is estimated at around Rs 35,000 crore (Rs 350 billion). Eighty-five per cent of this falls into the unorganised sector. The share of the wooden furniture market is around Rs 60 crore (Rs 600 million). The world home furniture market is worth Rs 20,000 crore (Rs 200 billion). During the past three years, it grew by 20 per cent a year. The range of indigenous furniture available in India includes both residential and contract system furniture, with an increased concentration in office and kitchen furniture. Manufacturers in India generally use a three-tier selling and distribution structure, comprising the distributor, wholesaler and retailer. India was the biggest furniture importer in 2004-05, with a 17 per cent share in furniture imports worldwide. A total of 10,476 importers shipped furniture to India during this period. The current imports are mainly from Italy, Germany, Spain, China, Korea, Malaysia, Indonesia, the Philippines and Japan. The furniture market in India is mainly concentrated in A, B and C cities (the top 589 cities). It has been estimated that the top 784 urban centres contribute 41 per cent to the total consumer furniture market. A and B type cities together
10
contribute 33 percent of the total market.
c. Future of the industry
According to a World Bank study, the organised furniture industry is expected to grow by 20 per cent a year and India, Russia and Brazil will witness a boom.
2. PROFILE OF THE ORGANIZATION
2.1 ORIGIN OF THE ORGANIZATION Hi-Flex Modular & Seating Solutions Pvt Ltd. came into existence on 9th February, 2008.Mr.Sabarigiri Varadha is the Chairman and Managing Director of the company. It has its head office at J.P.Nagar 7 Phase , Bangalore.
2.2 GROWTH AND DEVELOPMENT OF THE ORGANIZATION The company has come up with a factory at J.P.Nagar – 9th Phase, Bangalore.With an area of 5000 square feet,the factory is well equipped with all the equipments used for manufacture of furniture (sofas, tables, cupboard).This is the 2ndfactory at Bangalore.One factory is at Mysore Road which is used to manufacture chairs.And the most important development for the company is the sanction of 23.4 acres of
11
land at Pondicherry SEZ,the work for which will start in another 3-4 months.
2.3 PRESENT STATUS OF THE ORGANIZATION
The current strength of the workers are around 50 which will increase in the near future.The production is going on in full swing and the company got many orders from clients worth lakhs of rupees.The future is good for the company.
2.4 FUTURE PLANS OF THE ORGANIZATION
The company is coming up with a furniture showroom in Bangalore which is spread over 2000 square feet.It is also planning to expand in the northern part of India in the near future.It plans to have a huge network of dealers and corporates as its customers.
2.5 FUNCTIONAL DEPARTMENTS OF THE ORGANIZATION
i) ii) iii) iv)
Production Department Finance Department Marketing Department Human Resource Department
2.6 ORGANIZATION STRUCTURE AND ORGANIZATION CHART
12
SABARIGIRI VARADHA (CHAIRMAN) PARAS RUGHANI (MARKETING HEAD) SATHEESH N. (FINANCE HEAD) SUNDEEP SHABAD (HR HEAD)
MARKETING EXECUTIVES
FINANCE EXECUTIVES
HR EXECUTIVES
2.7PRODUCT AND SERVICE PROFILE OF THE ORGANIZATION
HMS is into manufacture of Chairs, Sofas, Executive Tables, Beds, Dining Tables, Modular Kitchens, Modular Workstations and other allied products with a competitive edge in terms of price, durability, ergonomics, functionality and aesthetical value. Itprovides free Transportation/delivery anywhere in India.Also it provides free after sales for the next 2 years.
2.8 MARKET PROFILE OF THE ORGANIZATION
The company has an infrastructure set up to produce nearly 15000 home & office, seating and modular systems a Month, with a state of the art assembly line. It has 16+ years of Expertise and Domain Knowledge of the products and more than 3000+ fabrics and leatherettes to choose from.
13
Rich and high profile client base that gives the companythe capability of handling diverse industry searches. Strong marketing teams are there to market the product across India.
3. DISCUSSIONS ON TRAINING
3.1 STUDENT’S WORK PROFILE(ROLE AND RESPONSIBILITIES)
I am dealing with the investment decision on behalf of the company.My job is to study and analyse the stock market so that investments can be made in stocks,mutual funds,gold and other financial products. Wecollect information relating to the market from the web and make decisions whether to invest in a particular stock or not,whether the stock is overvalued or undervalued.The P/E ratio and EPS of different companies were compared to come to the conclusion that which stock is a hot pick.Also the analysis of financial statements and the future projects of the company were studied to find out the financial strength of the company. My primary job is to earn as much wealth for the company by investing a part of the operating profit in the financial markets.
3.2 DESCRIPTION OF LIVE EXPERIENCE
14
The first thing wedid was, weenquired about different mutual fund houses by calling them and taking appointments with them.Then we had meetings with different mutual fund house like SBI mutual fund,DBS Cholamandalam,Kotak Opportunities fund,TATA mutual fund,Principle PNB mutual fund,Sundaram mutual fund,etc.They gave a good insight on which product schemes would suit according to our investing needs(we wanted capital appreciation).So they told us about open ended growth schemes and also gave a suggestion to park our extra funds on liquid assets like short term liquid funds like 90 days or 182 days advances. We also enquired about different broking firms as investing in stock market was also our objectives.Kotak Mahindra Bank was the choice for us for its low brokerages but also for its good customer services.
3.3 STUDENT’S CONTRIBUTION TO ORGANIZATION
I have been working with HMSS Pvt. Ltd. for the last 4 months and I have been carrying out various responsibilities other than the investment part like finance,production,marketing,Human Resource etc. I helped the finance team by maintaing the daily expenses of marketing people and also opened the bank accounts of most of the employees. I also looked after the production unit like stock maintenance,material handling,purchase of raw materials,check wastages,etc.I used to maintain how much of material is coming in like plywood,silverwood,
15
fevicol,nails,foams all required for manufacturing of sofas and almirahs and other furnishing items.
Apart from that our MD gave us the assignment to find about the SEZ in Dubai as we were thinking of expansion.We met Mr.Nishant Kumar,the Marketing head of Bangalore in charge of that Dubai SEZ.It was a very satisfying meeting as he told us different formalities required to set up a office there.
4. STUDY OF THE SELECTED RESEARCH PROBLEM
Since our companywanted returns in excess of 30%, we were looking for direct equities and mutual funds(open ended growth funds).I did the research on different fund houses,their past performance,their corpus invested,the fund manager involved with the fund. We did research on different growth funds of different companies,all of them open -ended.The fund was evaluated on the basis of past data and most important with the help of various ratios like fama, beta, sortino, treynor,sharpe,correlation,standard deviation,etc.The meaning of various ratios are given as follows:
Sortino ratio
16
A variation of the Sharpe ratio which differentiates harmfulvolatilityfrom volatility in general by replacing standard deviationwith downside deviation in the denominator. Thus, the SortinoRatiois calculated by subtracting the riskfreerate from thereturn of the portfolioand then dividing by the downsidedeviation. The Sortino ratiomeasuresthe return to "bad" volatility. This ratio allowsinvestors to assess risk in a better manner than simply looking atexcess returns to total volatility, since such a measure does not consider how often thepriceof thesecurity rises as opposed to how often it falls. A large Sortino Ratio indicates a lowrisk of large lossesoccurring.
Treynor Index
Ameasureof a portfolio'sexcess returnperunitof risk, equal to the portfolio's rate of returnminus the risk-free rateof return, divided by the portfolio's beta. This is a similar ratioto the Sharpe ratio, except that the portfolio's beta is considered the measure of risk as opposed to the varianceof portfolioreturns. This is useful for assessing the excess return from each unit of systematic risk, enablinginvestors to evaluate how structuring the portfolio to different levels of systematic risk will affect returns.
Sharpe Ratio
17
A ratio developed by Nobel laureate William F. Sharpe to measure riskadjusted performance. The Sharpe ratio is calculated by subtracting the risk-free rate - such as that of the 10-year U.S. Treasury bond - from the rate of return for a portfolio and dividing the result by the standard deviation of the portfolio returns. The Sharpe ratio tells us whether a portfolio's returns are due to smart Investment decisions or a result of excess risk. This measurement is very useful because although one portfolio or fund can reap higher returns than its peers, it is only a good investment if those higher returns do not come with too much additional risk. The greater a portfolio's Sharpe ratio, the better its risk-adjusted performance has been.
Beta
A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Also known as "beta coefficient". Beta is calculated using regression analysis, and you can think of beta as the tendency of a security's returns to respond to swings in the market. A beta of 1 indicates that the security's price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicates that the security's price will be more volatile than the market. For example, if a stock's beta is 1.2, it's theoretically 20% more volatile than the market.
18
Many utilities stocks have a beta of less than1. Conversely, most high-tech Nasdaq-based stocks have a beta of greater than 1, offering the possibility of a higher rate of return, but also posing more risk.
Standard Deviation
A measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard deviation is calculated as the square root of variance. In finance, standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility. Standard deviation is also known as historical volatility and is used by investors as a gauge for the amount of expected volatility. Standard deviation is a statistical measurement that sheds light on historical volatility. For example, a volatile stock will have a high standard deviation while the deviation of a stable blue chip stock will be lower. A large dispersion tells us how much the return on the fund is deviating from the expected normal returns
Based on these ratios,we evaluated various funds which are as follows:
BIRLA SUNLIFE MF
19
(INDEX –GROWTH)
Type of Open Ended Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size( in Rs. Cr.) Equity
Fund Manager SIP STP Growth SWP Sep 17, 2002 Expense 10 ratio(%) 41.31 as on May 30, 2008 Portfolio Turnover Ratio(%)
Ajay Garg .
1.51
484
LastDividendDeclared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load Exit Load
NA 5000 Daily Daily Entry Load is 0%. Exit Load is 0%.
20
Increase/Decrease in Fund Size since Apr 30, 2008 (Rs. 5.95 in crores)
Latest NAV Benchmark Index - S&P Nifty 52 – Week High 52 - Week Low
44.91 as on Jun 9, 2008 4,500.95 as on Jun 9, 2008 64.10 as on Jan 8, 2008 40.91 as on Jun 13, 2007
SCHEME PERFORMANCE (%) AS ON JUN 9, 2008 1 Month -10.70 3 Months -7.47 6 Months -26.52 1 Year 8.83 3 Years 27.38 5 Years 32.93 Since Inception 29.98
Mean Standard Deviation
0.97 3.77
Treynor Sortino
0.84 0.37 1.02
0.23 Sharpe Beta 1.03 Correlation
0.02 Fama
21
Cash & Equity Debt Equivalent 71.77 0.00 28.23
DBS CHOLAMANDALAM (OPPORTUNITIES-CUMULATIVE)
Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size (in Rs. Cr.)
Open Ended Equity Growth Nov 8, 1997 SIP STP 10 SWP 67.8 as on May 30, 2008 Expense ratio(%) Portfolio Turnover Ratio(%) 335 1.89 Fund Manager Bajrang Kumar Bafna .
LastDividendDeclared Minimum Investment (Rs)
NA 3000
22
Purchase Redemptions NAV Calculation
Daily Daily Amount Bet. 0 to 29999999 then Entry load
Entry Load
is 2.25%. If redeemed bet. 0 Year to 6 Year; and Amount Bet. 0 to 29999999 then Exit load is 1%. If redeemed bet. 0 Months to 6
Exit Load
Months; and Amount Bet. 30000000 to 49999999 then Exit load is 0.5%. and Amount greater than 50000000 then Exit load is 0%.
Increase/Decrease in Fund Size since Apr 30, 2008 (Rs. in 0.09 crores)
Latest NAV Benchmark Index – S&P Nifty 52 - Week High 52 - Week Low
34.83 as on Jun 9, 2008 4,500.95 as on Jun 9, 2008 53.21 as on Jan 7, 2008 28.91 as on Jun 13, 2007
23
SCHEME PERFORMANCE (%) AS ON JUN 9, 2008 Since 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years Inception -15.32 -8.08 -27.80 18.76 29.44 35.83 12.57
Mean Standard Deviation Sharpe Beta
1.33 3.71 0.33 0.96
Treynor Sortino Correlation Fama
1.28 0.55 0.95 0.39
Cash & Equity Debt Equivalent 94.27 0.00 5.73
DEUTSCHE MUTUAL FUND
24
(ALPHA-GROWTH)
Type of Open Ended Scheme Nature Option Inception Date Face Value 10 (Rs/Unit) Fund Size (in Rs. Cr.) 137.76 as on May 30, 2008 Equity Growth Jan 21, 2003
Fund Manager SIP STP SWP Expense ratio(%) Portfolio Turnover Ratio(%)
Aniket Inamdar
2.45
145
LastDividendDeclared Minimum Investment (Rs) Purchase Redemptions NAV Calculation
NA 5000 Daily Daily Amount Bet. 0 to 19999999 then Entry load
Entry Load
is 2.25%. and Amount greater than 20000000 then Entry load is 0%.
Exit Load
If redeemed bet. 0 Months to 6 Months; and
25
Amount Bet. 0 to 99999999 then Exit load is 0%. If redeemed bet. 0 Months to 6 Months; and Amount greater than 100000000 then Exit load is 2.25%.
Increase/Decrease in Fund Size since Apr 30, 2008 (Rs. in 20.23 crores)
Latest NAV Benchmark Index - S&P Nifty 52 - Week High 52 – Week Low
64.97 as on Jun 13, 2008 4,517.10 as on Jun 13, 2008 87.72 as on Jan 4, 2008 53.43 as on Jun 18, 2007
SCHEME PERFORMANCE (%) AS ON JUN 13, 2008 1 Month 3 Months 0.82 Since 6 Months 1 Year 3 Years 5 Years Inception -21.77 23.45 35.39 44.59 41.44
-6.91
Mean Standard Deviation
1.10 3.56
Treynor
1.04
Sortino
0.46
26
Sharpe Beta
0.28 0.96
Correlation Fama
0.95 0.19
Equity Debt 93.88 0.00
Cash & Equivalent 6.12
DEUTSCHE MUTUAL FUND (INVESTMENT OPPORTUNITY)
Type of Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size in Rs. Cr. Last Divdend Declared
Open Ended Equity Growth Jan 29, 2004 10 119.21 as on May 30, 2008
Fund Manager SIP STP SWP Expense ratio(%) Portfolio Turnover Ratio(%)
Aniket Inamdar .
2.25 186
NA
Minimum Investment 5000 (Rs)
27
Purchase Redemptions NAV Calculation Entry Load
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 99999999 then Exit load is 0%. If redeemed bet. 0 Months to 6 Months; and Amount greater than 100000000 then Exit load is 2.25%.
Exit Load
Increase/Decrease in Fund Size since Apr 30, 2008 (Rs. in crores)
27.75
Latest NAV Benchmark Index BSE200 52 - Week High 52 - Week Low
32.91 as on Jun 13, 2008 1,879.05 as on Jun 13, 2008 46.93 as on Jan 4, 2008 24.87 as on Jun 18, 2007
SCHEME PERFORMANCE (%) AS ON JUN 13, 2008 Since 1 Month -7.22 3 Months 0.24 6 Months -23.91 1 Year 34.27 3 Years 38.49 5 Years Inception NA 31.29
28
Mean Standard Deviation Sharpe Beta
1.38 3.70 0.35 0.96
Treynor Sortino Correlation Fama
1.33 0.57 0.95 0.44
Cash& Equity Debt Equivalent 94.88 0.00 5.12
UTI MUTUAL FUND (INFRASTRUCTURE FUND)
Type of Open Ended Scheme Nature Option Inception Date Face Value (Rs/Unit) Fund Size (in May 31, 2008 10 1558.44 as on Equity Growth Apr 7, 2004
Fund Manager SIP STP SWP Expense
Sanjay Dongre .
1.92 ratio(%) Portfolio Turnover
0.3905
29
Rs. Cr.) Ratio(%) LastDividendDeclared Minimum Investment (Rs) Purchase Redemptions NAV Calculation 12 % as on Mar 11, 2005 5000 Daily Daily Amount Bet. 0 to 19999999 then Entry load Entry Load is 2.25%. and Amount greater than
20000000 then Entry load is 0%. If redeemed bet. 0 Days to180 Days; and Amount Bet. 0 to 19999999 then Exit load is Exit Load 1%. If redeemed bet. 0 Days to 180 Days; and Amount greater than 20000000 then Exit load is 0.5%.
Increase/Decrease in Fund Size since Apr 30, 2008 (Rs. in -81.09 crores)
Latest NAV Benchmark Index – BSE100
32.10 as on Jun 13, 2008 8,017.61 as on Jun 13, 2008
30
52 - Week High 52 - Week Low
50.70 as on Jan 4, 2008 29.86 as on Jun 18, 2007
SCHEME PERFORMANCE (%) AS ON JUN 13, 2008 1 Month -8.68 3 Months -8.88 6 Months -33.80 1 Year 9.05 3 Years 35.16 5 Years NA Since Inception 32.58
Mean
1.25 1.10 Treynor
Standard Deviation Sharpe Beta
3.84 Sortino 0.30 Correlation 1.04 Fama 0.18 1.02
0.48
Cash & Equity Debt Equivalent
31
82.10
0.73
17.17
TATA MUTUAL FUND (PURE EQUITY FUND)
Type of Scheme Nature Option Inception Date Face Value 10 (Rs/Unit) 339.09 as on Open Ended
Fund Manager SIP Equity Growth May 7, 1998 STP SWP Expense ratio(%)
M Venugopal .
2.33
Fund Size in Rs. Cr.
Portfolio May 30, 2008 Turnover Ratio(%) 84
Last Dividend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation Entry Load
20 % as on Jul 24, 2000 5000 Daily Daily
32
Amount Bet. 0 to 9999999 then Entry load is 2.25%.and Amount greater than 10000000 then Entry load is 0%. If redeemed bet. 0 Months to 6 Months; and Exit Load Amount Bet. 0 to 9999999 then Exit load is 1%. and Amount greater than 10000000 then Exit load is 0%.
Increase/Decrease in Fund Size since Apr 30, 2008 (Rs. in crores)
-2.79
Latest NAV Benchmark Index - BSE Sensex 52 - Week High 52 - Week Low
71.99 as on Jun 13, 2008 15,189.62 as on Jun 13, 2008 102.91 as on Jan 4, 2008 65.01 as on Jun 18, 2007
SCHEME PERFORMANCE (%) AS ON JUN 13, 2008 1 Month -7.28 3 Months -1.60 6 Months -26.15 1 Year 12.15 3 Years 29.97 5 Years 46.08 Since Inception 23.66
Mean Standard
1.03
Treynor
0.99
33
3.54 Deviation
Sortino Correlation
0.42 0.94 0.13
Sharpe Beta
0.26 Fama 0.94
Equity Debt 87.00 0.00
Cash & Equivalent 13.00
TATA MUTUAL FUND (INFRASTRUCTURE FUND)
Type of Open Ended Scheme Nature Option Inception Date Face Value 10 (Rs/Unit) Fund Size in Rs. 2566.29 as on May 30, 2008 Equity Growth Dec 22, 2004
Fund Manager SIP STP SWP Expense
M Venugopal .
2.25 ratio(%) Portfolio Turnover
68
34
Cr. Ratio(%)
LastDividendDeclared Minimum Investment (Rs) Purchase Redemptions NAV Calculation
NA 5000 Daily Daily Amount Bet. 0 to 19999999 then Entry
Entry Load
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
Exit Load
then Exit load is 1%. and Amount greater than 20000000 then Exit load is 0%.
Increase/Decrease in Fund Size since Apr 30, 2008 (Rs. in -80.29 crores)
Latest NAV Benchmark Index - BSE Sensex
30.24 as on Jun 13, 2008 15,189.62 as on Jun 13, 2008
35
52 - Week High 52 - Week Low
45.52 as on Jan 4, 2008 25.41 as on Jun 18, 2007
SCHEME PERFORMANCE(%) AS ON JUN 13, 2008 Since 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years Inception -8.04 -3.99 -31.02 21.33 38.84 NA 36.91
Mean Standard
1.31
Treynor Sortino
1.19 0.50 1.01 0.34
3.86 Deviation Sharpe Beta 0.31 1.01 Correlation Fama
Cash & Equity Debt Equivalent 72.82 0.00 27.18
JM FINANCIAL MUTUAL FUND
36
(BASIC FUND)
Type of Open Ended Scheme Nature Option Inception Date Equity Growth Jun 2, 1997
Fund Manager SIP STP SWP Expense
Asit Bhandarkar .
2.02 ratio(%) Face Value 10 (Rs/Unit) Fund Size in Rs. Cr. 1105.5 as on May 30, 2008 Portfolio Turnover Ratio(%) Last Dividend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation 10 % as on Dec 28, 2004 5000 Daily Daily Amount Bet. 0 to 29999999 then Entry Entry Load load is 2.25%. and Amount greater than 30000000 then Entry load is 0%. Exit Load 36.04
37
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%.
Increase/Decrease in Fund Size since Apr 30, 2008 (Rs. in -93.53 crores)
Latest NAV Benchmark Index 52 - Week High 52 - Week Low
24.50 as on Jun 13, 2008 NA 40.86 as on Jan 2, 2008 22.86 as on Jun 18, 2007
SCHEME PERFORMANCE (%) AS ON JUN 13, 2008 Since 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years Inception -11.14 -7.68 -35.69 9.04 32.34 29.70 17.08
Mean Standard
1.54
Treynor Sortino
1.92 0.68 0.75
3.27 Deviation Correlation
38
Sharpe Beta
0.44 0.75
Fama
0.70
Cash & Equity Debt Equivalent 91.87 0.00 8.13
SUNDARAM MUTUAL FUND (BALANCED FUND)
Type of Open Ended Scheme Nature Option Inception Date Equity & Debt Growth May 25, 2000 SIP STP SWP Face Value (Rs/Unit) ratio(%) Fund Size(in 42.02 as on May 30, 2008 Portfolio 10 Expense Fund Manager
Satish Ramanathan , Rahul Pal .
2.50
17
39
Rs. Cr.) Turnover Ratio(%) Last Dividend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation NA
5000 Daily Daily Amount Bet. 0 to 19999999 then Entry load
Entry Load is 2.25%. If redeemed bet. 0 Months to 6 Months; Exit load is 1%. If redeemed bet. 6 Months to 12 Exit Load Months; and Amount Bet. 0 to 19999999 then Exit load is 1%. If redeemed after 12 Months; Exit load is 0%.
Increase/Decrease in Fund Size since Apr 30, 2008 (Rs. in crores)
-1.98
Latest NAV Benchmark Index - Crisil Balanced Fund Index
36.21 as on Jun 13, 2008
2,767.11 as on Jun 11, 2008
40
52 - Week High 52 - Week Low
46.88 as on Jan 7, 2008 33.91 as on Aug 21, 2007
SCHEME PERFORMANCE (%) AS ON JUN 13, 2008 Since 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years Inception -6.06 -3.93 -21.20 7.01 19.92 26.36 17.28
Mean Standard Deviation Sharpe Beta
0.83 2.58
Treynor Sortino Correlation
0.70 0.46 1.06 0.16
0.28 1.03
Fama
Cash& Equity Debt Equivalent 66.87 19.01 14.12
SUNDARAM MUTUAL FUND
41
(GROWTH FUND)
Type of Open Ended Scheme Nature Option Inception Date Face Value 10 (Rs/Unit) Fund Size (in Rs. Cr.) 177.07 as on May 30, 2008 Equity Growth Feb 15, 1997
Fund Manager SIP STP SWP Expense
J. Venkatesan .
2.39 ratio(%) Portfolio Turnover Ratio(%) 30 % as on May 16, 2000 2000 Daily Daily Amount Bet. 0 to 19999999 then Entry Entry Load load is 2.25%. If redeemed bet. 0 Months to 6 Exit Load Months; Exit load is 1%. If redeemed 111
LastDividendDeclared Minimum Investment (Rs) Purchase Redemptions NAV Calculation
42
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%.
Increase/Decrease in Fund Size since Apr 30, 2008 (Rs. in crores)
1.07
Latest NAV Benchmark Index - BSE200 52 - Week High 52 - Week Low
80.76 as on Jun 13, 2008 1,879.05 as on Jun 13, 2008 120.70 as on Jan 4, 2008 68.45 as on Aug 21, 2007
SCHEME PERFORMANCE (%) AS ON JUN 13, 2008 Since 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years Inception -5.90 0.25 -29.55 19.70 32.20 41.93 21.21
Mean Standard
1.22
Treynor Sortino
1.04 0.45 1.07
4.11 Deviation Correlation
43
Sharpe Beta
0.27 Fama 1.08 0.19
Cash& Equity 89.56 Debt Equivalent 0.00 10.44
SUNDARAM MUTUAL FUND (SELECT FOCUS)
Type of Scheme Nature Option Inception Date Face Value 10 (Rs/Unit) 858.43 as on Open Ended
Fund Manager SIP Equity Growth Jul 19, 2002 STP SWP Expense
Srividhya Rajesh .
2.26 ratio(%) Portfolio Turnover 122
Fund Size ( in Rs. Cr.)
Ratio(%) May 30, 2008
44
Last Dividend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation
NA 5000 Daily Daily Amount Bet. 0 to 19999999 then Entry
Entry Load load is 2.25%. If redeemed bet. 0 Months to 6 Months; Exit load is1%. If redeemed Exit Load bet. 6 Months to12 Months; and Amount Bet. 0 to 19999999 then Exit load is 1%. If redeemed after 12 Months; Exit load is 0%.
Increase/Decrease in Fund Size since Apr 30, 2008 (Rs. in -11.57 crores)
LatestNAV Benchmark Index - S&P Nifty
74.92 as on Jun 13, 2008 4,517.10 as on Jun 13, 2008
45
52 - Week High 52 - Week Low
112.48 as on Jan 4, 2008 61.16 as on Aug 21, 2007
SCHEME PERFORMANCE (%) AS ON JUN 13, 2008 Since 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years Inception
-6.00
-1.23
-30.02
23.98
38.83
43.87
40.87
Mean Standard
1.30
Treynor Sortino
1.05 0.48 1.13 0.24
4.23 Deviation Sharpe Beta 0.28 1.13 Correlation Fama
Cash& Equity Debt Equivalent 82.70 0.00 17.30
SUNDARAM MUTUAL FUND
46
(SELECT MID-CAP)
Type of Open Ended Scheme Nature Option Inception Date Face Value 10 (Rs/Unit) Fund Size (in Rs. Cr.) 1692.79 as on May 30, 2008 ratio(%) Portfolio Turnover Ratio(%) Equity Growth Jul 19, 2002 SIP STP SWP Expense Fund Manager
Satish Ramanathan .
1.89
26
Last DividendDeclared Minimum Investment (Rs) Purchase Redemptions NAV Calculation
NA 5000 Daily Daily Amount Bet. 0 to 49999999 then
Entry Load
Entry load is 2.25%. and Amount
47
Greater than 50000000 then Entry load is 0%. If redeemed bet. 0 Months to 12 Months; and Amount Bet. 0 to Exit Load 49999999 then Exit load is 1%. and Amount greater than 50000000 then Exit load is 0%.
Increase/Decrease in Fund Size since Apr 30, 2008 (Rs. in -112.21 crores)
Latest NAV Benchmark Index - BSE MID CAP 52 - Week High 52 - Week Low
96.39 as on Jun 13, 2008 6,228.17 as on Jun 13, 2008 155.36 as on Jan 2, 2008 91.60 as on Mar 24, 2008
SCHEME PERFORMANCE (%) AS ON JUN 13, 2008 Since 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years Inception -8.38 -4.29 -32.85 4.28 31.96 50.26 47.04
48
Mean Standard
1.10
Treynor Sortino
1.29 0.50 0.78 0.26
3.28 Deviation Sharpe Beta 0.30 0.77 Correlation Fama
Cash & Equity Debt Equivalent 89.43 0.00 10.57
SUNDARAM MUTUAL FUND (SMILE FUND)
Type of Scheme Nature Option Inception Date Open Ended Fund Manager
Mr. S Krishnakumar . SIP STP SWP
Equity Growth Jan 21, 2005
49
Face Value (Rs/Unit) Fund Size (in Rs. Cr.)
10
Expense ratio(%)
2.37
223.17 as on May 30, 2008
Portfolio Turnover Ratio(%) 149
LastDividend Declared Minimum Investment (Rs) Purchase Redemptions NAV Calculation
NA 5000 Daily Daily Amount Bet. 0 to 19999999 then
Entry Load 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 Exit Load Amount Bet. 0 to 19999999 then Exit load is 1%. If redeemed after 12 Months; Exit load is 0%.
Increase/Decrease in Fund Size since Apr 30, 2008 (Rs. in crores)
-6.83
50
Latest NAV
22.81 as on Jun 13, 2008 5,964.63 as on Jun 13,
Benchmark Index - BSE 500 2008 52 - Week High 52 - Week Low 35.59 as on Jan 4, 2008 19.01 as on Aug 21, 2007
SCHEME PERFORMANCE (%) AS ON JUN 13, 2008 Since 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years Inception -8.12 -1.66 -30.73 20.94 26.31 NA 28.13
Mean Standard
1.34
Treynor Sortino
1.29 0.52 0.96 0.37
3.84 Deviation Sharpe Beta 0.32 0.95 Correlation Fama
Cash& Equity Debt Equivalent 94.79 0.00 5.21
51
SBI MUTUAL FUND (CONTRA FUND)
Type of Scheme Nature Option Inception Date Open Ended
Fund Manager SIP Equity Growth Jul 3, 1999 STP SWP Expense
Pankaj Gupta .
1.87 ratio(%) Face Value (Rs/Unit) Fund Size (in Rs. Cr.) 10 2385.04 as on Ratio(%) May 30, 2008 Portfolio Turnover 10
LastDividendDeclared Minimum Investment (Rs) Purchase Redemptions NAV Calculation
21 % as on Nov 10, 2004 2000 Daily Daily Amount Bet. 0 to 49999999 then Entry
Entry Load
load is2.25%. and Amount greater than
52
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 Exit Load 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%.
Increase/Decrease in Fund Size since Apr 30, 2008 (Rs. in crores)
-93.9
SCHEME PERFORMANCE (%) AS ON JUN 13, 2008 Since 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years Inception -8.27 -3.63 -28.16 9.74 35.60 56.88 21.21
Mean Standard
1.13
Treynor Sortino
1.18 0.48 0.87 0.27
3.36 Deviation Sharpe Beta 0.31 0.87 Correlation Fama
53
Cash & Equity Debt Equivalent 88.16 0.63 11.21
KOTAK MUTUAL FUND (OPPORTUNITIES FUND)
Type of Open Ended Scheme Nature Option Inception Date Face Value 10 (Rs/Unit) ratio(%) Fund Size (in Rs. Cr.) 859.61 as on Portfolio May 31, 2008 Turnover Ratio(%) Last DividendDeclared NA Expense Equity SIP Growth STP Aug 25, 2004 SWP Fund Manager
Krishna Sanghvi , Anurag Jain .
2.23
120.7
54
Minimum Investment (Rs) Purchase Redemptions NAV Calculation
5000 Daily Daily Amount Bet. 0 to 49999999 then Entry
Entry Load
load is 2.25%. and Amount greater than 50000000 then Entry load is 0%. Ifredeemedbet. 0 Months to 6 Months;
Exit Load
Exit load is 1%.
Increase/Decrease in Fund Size since Apr 30, 2008 (Rs. in 36.03 crores)
Latest NAV Benchmark Index - CNX500 52 - Week High 52 - Week Low
36.74 as on Jun 13, 2008 3,634.80 as on Jun 13, 2008 56.28 as on Jan 4, 2008 30.55 as on Aug 21, 2007
55
SCHEME PERFORMANCE (%) AS ON JUN 13, 2008 Since 1 Month 3 Months 6 Months 1 Year 3 Years 5 Years Inception -8.13 -3.38 -30.03 20.84 35.87 NA 41.33
Mean Standard
1.40
Treynor Sortino
1.41 0.60 0.92 0.50
3.53 Deviation Sharpe Beta 0.37 0.92 Correlation Fama
Cash & Equity Debt Equivalent 91.87 5.99 2.14
CONCLUSION A fund scheme is decided by taking into consideration the fund house ‘s performance,amount of corpus,its performance over the past 5 years. Also among the various ratios,sortino ratio,beta,sharpe and standard
56
deviationare important.They show how volatile the fund is;is the returns due to excessive risks or due to logical investments by the fund manager. On the basis of the above criteria,SUNDARAM SELECT FOCUS MUTUAL FUND is the right fund to invest into.
5. SUMMARY AND CONCLUSIONS
5.1 SUMMARY OF THE LEARNING EXPERIENCE
I learnt a lot while working in the organization: ? I learnt how the corporate actually works. ? I learnt how to apply theoretical knowledge in management for decision making. ? I learnt how the employees are motivated to get the work done. ? I learnt how to conduct in the organization which is very important for any employee.
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doc_541656801.docx