PROJECT REPORT
ON
“PERFORMANCE EVALUATION OF PUBLIC AND
PRIVATE SECTOR MUTUAL FUNDS”
(With reference t Se!ecte" C#$%nie&'
SUBMITTED IN THE PARTIAL FULFILMENT OF THE
REQUIREMENT OF
“MASTER OF BUSINESS ADMINISTRATION” IN
ACKNOWLEDGEMENT
I (r%tef)!!* %c+n,!e"(e #* (r%tit)"e t XXXX- Prfe&&r in
c##erce- fr $r.i"in( #e .%!)%/!e ()i"%nce %n" nece&&%r* &)$$rt
thr)(h)t the $r0ect1 I %!& e2$re&& #* i##en&e (r%tit)"e %n" th%n+& fr
$r.i"in( #e % (" "irectin t,%r"& thi& $r0ect1 At the &%#e ti#e I %#
th%n+f)! t #* !ect)rer&- %n" %!& I %# th%n+f)! t #* frien"& ,h %re
he!$e" #e t #%+e thi& &t)"* &)cce&&f)!!*1
(XXXXX)
DECLARATION
I here /* "ec!%re th%t the $r0ect re$rt n “PERFORMANCE
EVALUATION OF PUBLIC AND PRIVATE SECTOR MUTUAL
FUNDS (with reference to selecte co!"#nies$% h%& /een
&)/#itte" )n"er the ()i"%nce f XXXX, Prfe&&r- De$%rt#ent f
C##erce- 33331
I f)rther "ec!%re th%t it i& %n ri(in%! ,r+ "ne /* #e %& % $%rt f
#* %c%"e#ic c)r&e %n" h%& nt /een &)/#itte" e!&e,here fr %n* "e(ree
r "i$!#%1 The /&er.%tin& %n" cnc!)&in& ,ritten in thi& re$rt %re
/%&e" n the "%t% c!!ecte" /* #e1
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CONTENTS
INTRODUCTION
• INTRODUCTION
• IMPORTANCE OF T4E STUD5
• OBJECTIVES
• MET4ODOLO65
• LIMITATIONS OF T4E STUD5
• C4APTERI7ATION
PROFILE OF SELECTED COMPANIES
MUTUAL FUNDS – AN OVERVIEW
PERFORMAENCE EVALUATION OF SELECTED
MUTUAL FUNDS
CONCLUSIONS AND SUGGESTIONS
BIBLIOGRAPHY
ANNEXURE
LIST OF TABLES
? T%/!e f A((re(%te De$&it& f &che")!e" crn /%n+& in In"i%
? T%/!e f #)t)%! f)n" 6r,th& %n" Di.i"en"1
? T%/!e& f ret)rn& f "ifferent &che#e&
? T%/!e f In"e2 Ret)rn
? T%/!e& f St%n"%r" De.i%tin
? Bet% C%!c)!%tin T%/!e&
? Sh%r$ Perfr#%nce Me%&)re#ent R%ti T%/!e&
? Tre*nr Perfr#%nce Me%&)re#ent R%ti T%/!e&
? Jen&en Perfr#%nce Me%&)re#ent R%ti T%/!e&
INTRODUCTION
INTRODUCTION
The fin%nci%! &*&te# c#$ri&e& f fin%nci%! in&tit)tin&- in&tr)#ent&
%n" #%r+et& th%t $r.i"e %n effecti.e $%*#ent %n" cre"it &*&te# th%t
f%ci!it* the ch%nne!in( f f)n"& fr# &%.er& t the in.e&tr& f the
ecn#*1 In"i%n M)t)%! F)n"& h%.e e#er(e" %& &trn( fin%nci%! &t%/i!it*
t the fin%nci%! &*&te#1 M)t)%! F)n"& h%.e $ene" ne, .i&t%& t in.e&tr&
%n" i#$rte" #)ch nee"e" !i8)i"it* t the &*&te#1
M)t)%! F)n"& %re "*n%#ic fin%nci%! in&tit)tin&- ,hich $!%* %
cr)ci%! r!e in %n ecn#* /* #/i!i9in( &%.in(& %n" in.e&tin( in the
c%$it%! #%r+et& &%.in(& %n" the in.e&tin( in the c%$it%! #%r+et&1 Therefre-
the %cti.itie& f M)t)%! F)n"& h%.e /th &hrt %n" !n( ter# i#$%ct n the
&%.in(& %n" c%$it%! #%r+et %n" n%tin%! ecn#*1
M)t)%! F)n"& $r.i"e h)&eh!"& %n $tin fr $rtf!i
"i.er&ific%tin %n" re!%ti.e ri&+ %.er&in thr)(h c!!ectin f f)n"& fr#
the h)&e h!"& %n" #%+e& in.e&t#ent& in the &tc+ %n" the "e/t #%r+et1
NEED FOR THE STUDY
M)t)%! F)n"& %re fin%nci%! inter#e"i%rie& cncern ,ith the
#/i!i9in( &%.in(& f th&e h%.e &)r$!)& inc#e %n" ch%nne!&
!%.%tin f th&e %.en)e& ,here there i& "e#%n" f F)n"&1
The $)r$&e f thi& &t)"* f $erfr#%nce e.%!)%tin f #)t)%!
f)n"& i& t &ee th%t the&e #)t)%! f)n"& e#$!* the re&)rce& in &)ch %
#%nner %& t %ffr" fr the in.e&tr& c#/ine /enefit& f !, ri&+- &te%"*
ret)rn&- hi(h !i8)i"it* %n" c%$it% %$$reci%tin thr)(h "i.er&ific%tin %n"
e2$ert #%n%(e#ent1
Therefre- %cti.itie& f #)t)%! f)n"& h%.e &hrt %n" !n( ter#
i#$%ct n the &%.in(& %n" c%$it%! #%r+et& %n" n%tin%! ecn#*: #)t)%!
fin"& th)& %&&i&t the $rce&& f fin%nci%! "ee$enin( %n" inter#e"i%tin1
OB1ECTIVES OF STUDY
The &$ecific /0ecti.e& f the &t)"* %re %& f!!,&
? T %n%!*9e the tren"& in ret)rn& f &e!ecte" #)t)%! f)n"&1
? T e.%!)%te the $erfr#%nce f &e!ecte" P)/!ic %n" Pri.%te &ectr
M)t)%! F)n"&1
METHODOLOGY
Source of Data:
The "%t% c%n /e c!!ecte" fr# Secn"%r* S)rce&1 The "%t% ,%&
c!!ecte" fr# P%&t Recr"&- B+&- J)rn%!&- M%(%9ine&- Internet %n" %!!
ther t*$e& f $)/!i&he" "%t%1
STATISTICAL TECHNIQUES
The &i#$!e &t%ti&tic%! techni8)e& !i+e $ercent%(e& %n" (r,th r%te&
%re c%!c)!%te"1 Fr the $)r$&e f e.%!)%tin the $$)!%r #eth"& &)ch %&
Sh%r$e- Tre*nr %n" Jen&en %re %$$!ie"1
PERIOD OF THE STUDY
Fr the &t)"* "%t% c!!ecte" fr fi.e *e%r&- fr# the $eri" ;
&t
J%n)%r* <==> t ?;
&t
Dece#/er <==@1
LIMITATION OF THE STUDY
The &t)"* h%& cert%in !i#it%tin&
The cnce$t f #)t)%! f)n"& i& !i+e ce%n1 S % "et%i!e" &t)"* f
e%ch %n" e.er* c#$nent f thi& cnce$t i& nt $&&i/!e /ec%)&e f the
!i#ite" ti#e cn&tr%int1
The #)t)%! f)n"& %n" &ec)ritie& in.e&t#ent %re &)/0ecte" t #%r+et
ri&+& %n" there c%n /e n %&&)r%nce& r ()%r%ntee th%t the &che#e&
/0ecti.e& ,i!! /e %chie.e"1
The %n%!*&i& %& h%" /een "ne .er* fe, &che#e& f &e!ecte" fr
$)/!ic %n" $ri.%te &ectr #)t)%! f)n"&1
CHAPTERISATION
Aee$in( in .ie, the /0ecti.e& f the &t)"* i& r(%ni9e" int fi.e ch%$ter&1
The fir&t ch%$ter i& intr")ctr* in n%t)re it "e%!& ,ith the
intr")ctin f the &t)"*- nee" fr &t)"*- O/0ecti.e& f the &t)"*- Re&e%rch
#eth"!(*- Peri" the &t)"* %n" Li#it%tin& f the &t)"*1
The &ecn" ch%$ter "e%!& ,ith In")&tri%! Prfi!e in In"i% it t)che&
cnce$t f M)t)%! F)n"&- M)t)%! F)n"& in In"i%- A&&et M%n%(e#ent
C#$%n*B& C#$%n* in")&tri%! %!! $rfi!e1
The thir" ch%$ter i& "e"ic%te" t "e%! ,ith %n .er.ie, f M)t)%!
F)n"&1 It c.er& the %&$ect& &)ch %& intr")ctin- 4i&tric%! M)t)%! F)n"&-
t*$e f M)t)%! F)n"&- in.e&tr $rtectin- Ri&+ %n" Re,%r"- V!%ti!it*-
In.e&t#ent O/0ecti.e&- A".%nt%(e& f in.e&tin( in M)t)%! F)n"& %n" T%2
Benefit&-
Ch%$ter f)r "e%!& ,ith intr")ctin t $r#inence e.!)tin f
M)t)%! F)n"&- $erfr#%nce #e%&)rin( f M)t)%! f)n"&- #e%&)rin( #)t)%!
f)n"& ret)rn- ri&+ %"0)&t#ent ret)rn&- Perfr#%nce #e%&)re#ent f
"ifferent t*$e& f #)t)%! f)n"& )&in( #e%&)re#ent techni8)e& &)ch %&
Sh%r$e- Tre* nr %n" Jen&en in"e2 r%ti& %n" the %n%!*&i& f $erfr#%nce1
Thi& ch%$ter i& %/)t the cnc!)&in f the &t)"* %n" &)((e&tin& fr
the &t)"*1
MUTUAL FUNDS
AN OVERVIEW
MUTUAL FUNDS – AN OVERVIEW
INTRODUCTION
T &t%te in &i#$!e ,r"&- % #)t)%! f)n" c!!ect& the &%.in(& fr#
&#%!! in.e&tr&- in.e&t the# in 6.ern#ent %n" ther cr$r%te &ec)ritie&
%n" e%rn inc#e thr)(h intere&t %n" "i.i"en"&- /e&i"e& c%$it%! (%in1 It
,r+& n the $rinci$!e f” &#%!! "r$ f ,%ter #%+e& % /i( ce%nB1
DEFINITION
The &ec)ritie& %n" E2ch%n(e B%r" f In"i% (M)t)%! F)n"&'
Re()!%tin- ;CC? "efine& % #)t)%! f)n" “% f)n" e&t%/!i&he" in the fr# f %
tr)&t /* % &$n&r- t r%i&e #nie& /* the tr)&tee& thr)(h the &%!e f )nit&
t the- $)/!ic- )n"er ne r #re &che#e&- fr in.e&tin( in &ec)ritie& in
%ccr"%nce ,ith the&e re()!%tin&”
Accr"in( t We&tn J1 Fre" %n" Bri(h%#- E)(ene- F- Unit tr)&t&
%re “cr$r%tin& ,hich %cce$t "!!%r& fr# &%.er& %n" then )&e the&e
"!!%r& t /)* &tc+- !n( ter# /n"&- &hrt ter# "e/t in&tr)#ent& i&&)e"
/* /)&ine&& r (.ern#ent )nit&: the&e cr$r%tin& $! f)n"& %n" th)&
re")ce ri&+ /* "i.er&ific%tin”1
HISTORY OF MUTUAL FUNDS
An $enDen" f)n" i& ne th%t i& %.%i!%/!e fr &)/&cri$tin %!! thr)(h
the *e%r1 The&e " nt h%.e % fi2e" #%t)rit*1 In.e&tr& c%n cn.enient!*
/)* %n" &e!! )nit& %t Net A&&et V%!)e (ENAVE' re!%te" $rice&1 The +e*
fe%t)re f $enDen" &che#e& i& !i8)i"it*
The M)t)%! f)n" in")&tr* in In"i% &t%rte" in CF? ,ith the fr#%tin
f UTI ()nite" tr)&t f In"i%'- %t the initi%ti.e f (.ern#ent f In"i%1 The
hi&tr* f M)t)%! F)n"& in In"i% c%n /e /r%"!* "i.i"e" int F)r Ph%&e&
First Phase- 1964-87
Unit Tr)&t f In"i% ,%& e&t%/!i&he" /* %n %ct f P%r!i%#ent1 It ,%& &et
)$ /* the Re&er.e B%n+ f In"i% %n" f)nctine" )n"er the Re()!%tr* %n"
A"#ini&tr%ti.e cntr! f the Re&er.e B%n+ f In"i%1 In ;C@G UTI ,%& "eD
!in+e" fr# the RBI %n" IDBI t+ .er the re()!%tr* %n" %"#ini&tr%ti.e
cntr! in $!%ce f RBI1 The fir&t &che#e !%)nche" /* UTI ,%& Unit
Sche#e ;CFH1 At the en" f ;CGG UTI h%" R&1 F@== crre& f %&&et& )n"er
#%n%(e#ent1
Second phase-1987-1993(entry of public sector funds)
;CG@ #%r+ete" the entr* f nnDUTI- $)/!ic &ectr #)t)%! f)n"& &et
)$ /* $)/!ic &ectr /%n+& %n" !ife in&)r%nce Cr$r%tin f In"i% (LIC' %n"
(ener%! In&)r%nce Cr$r%tin f In"i% (6IC'1 SBI M)t)%! f)n" ,%& the
fir&t nnDUTI M)t)%! f)n" e&t%/!i&he" in J)ne ;CG@ f!!,e" /* c%n /%n+
M)t)%! f)n" (Dec ;CG@'- P)n0%/ n%tin%! /%n+ #)t)%! f)n" (A)()&t GC'1
In"i% /%n+ #)t)%! f)n" (N. GC'1 B%n+ f In"i% (J)ne C='- /%n+ f B%r"%
#)t)%! f)n" (Oct C<'1 LIC e&t%/!i&he" it& #)t)%! f)n" in N. ;CGC ,hi!e
6IC h%" &et )$ it& #)t)%! f)n" in Dece#/er ;CC= %t the en" f ;CC?- the
#)t)%! f)n" in")&tr* h%" %&&et )n"er #%n%(e#ent f R&1H@- ==H cre&1
Third phase-1993-2003 (entry of private sector funds)
With the entr* f $ri.%te &ectr f)n"& in ;CC?- %n er% &t%rte" in the
In"i%n #)t)%! f)n" in")&tr*- (i.in( the In"i%n in.e&tr& % ,i"er chice f
f)n" f%#i!ie&- A!&1 ;CC? ,%& the *e%r in ,hich the fir&t #)t)%! f)n"
re()!%tin& c%#e int /ein(- )n"er ,hich %!! #)t)%! f)n"&- e2ce$t UTI
,ere t /e re(i&tere" %n" (.erne"- the Ath%ri $ineer (n, #er(e" ,ith
Fr%n+!in Te#$!etn' ,%& the fir&t $ri.%te &ectr #)t)%! f)n" re(i&tere" in
J)!* ;CC?1 The ;CC? SEBI (#)t)%! f)n"& ' re(i&tr%tin& ,ere &)/&tit)te" /*
% #re c#$rehen&i.e %n" re.i&e" #)t)%! f)n"& re()!%tin& in ;CCF the
n)#/er f #)t)%! f)n"& h)&e& ,ent n incre%&in(- ,ith #%n* frei(n
#)t)%! f)n"& &ettin( )$ f)n"& in In"i% %n" %!& the in")&tr* h%& ,itne&&e"
&e.er%! #er(er& %n" %c8)i&itin1 A& %t the f J%n <==?- there ,%re ??
#)t)%! f)n"& ,ith tt%! %&&ent& f R&1 ;-<;-G=> crre&1 The UTI ,ith R&1
HH->H; crre& f %&&et& )n"er #%n%(e#ent ,%& ,%* %he%" f ther #)t)%!
f)n"&1
Fourthphase-2003-2005:
Thi& $h%&e h%" /itter e2$erience fr UTI1 It ,%& /if)rc%te" int t,
&e$%r%te entitie&1 One i& the S$ecifie" Un"ert%+in( f the Unit Tr)&t f
In"i% ,ith AUM f R&1<C-G?> crre& (%& n J%n)%r* <==?'1 The S$ecifie"
Un"ert%+in( f Unit Tr)&t f In"i%- f)nctinin( )n"er %n %"#ini&tr%tr %n"
)n"er the r)!e& fr%#e" /* 6.ern#ent f In"i% %n" "e& nt c#e )n"er
the $)r.ie, f the M)t)%! F)n" Re()!%tin&1
The &ecn" i& the UTI M)t)%! F)n" Lt"- &$n&re" /* SBI- PNB-
BOB %n" LIC1 It i& re(i&tere" ,ith SEBI %n" f)nctin& )n"er the M)t)%!
F)n" Re()!%tin&1 With the /if)rc%tin f the er&t,hi!e UTI ,hich h%" in
M%rch <=== #re th%n R&1@F-=== crre& f AUM %n" ,ith the &ettin( )$ f
% UTI M)t)%! F)n"- cnfr#in( t the SEBI M)t)%! F)n" Re()!%tin&-
%n" ,ith recent #er(er& t%+in( $!%ce %#n( "ifferent $ri.%te &ectr f)n"&-
the #)t)%! f)n" in")&tr* h%& entere"
It& c)rrent $h%&e f cn&!i"%tin %n" (r,th- %& %t the en" f
Se$te#/er <==H- there ,ere <C f)n"&- ,hich #%n%(e %&&et& f R&1;>?;=G
crre& )n"er H<; &che#e&1
TYPES OF MUTUAL FUNDS
Closed-ended Funds
A c!&e"Den" f)n" h%& % &ti$)!%te" #%t)rit* $eri" ,hich (ener%!!*
r%n(in( fr# ? t ;> *e%r&1 The f)n" i& $en fr &)/&cri$tin n!* ")rin( %
&$ecifie" $eri"1 In.e&tr& c%n in.e&t in the &che#e %t the ti#e f the initi%!
$)/!ic i&&)e %n" there%fter the* c%n /)* r &e!! the )nit& f the &che#e n
the &tc+ e2ch%n(e& ,here the* %re !i&te"1 In r"er t $r.i"e %n e2it r)te
t the in.e&tr&- &#e c!&eDen"e" f)n"& (i.e %n $tin f &e!!in( /%c+ the
)nit& t the M)t)%! F)n" thr)(h $eri"ic re$)rch%&e %t NAV re!%te"
$rice&1 SEBI Re()!%tin& &ti$)!%te th%t %t !e%&t ne f the t, e2it r)te& i&
$r.i"e" t the in.e&tr1
Interval Funds
Inter.%! f)n"& c#/ine the fe%t)re& f $enDen"e" %n" c!&eDen"e"
&che#e&1 The* %re $en fr &%!e r re"e#$tin ")rin( $reD"eter#ine"
inter.%!& %t NAV re!%te" $rice&1
INVESTMENT OB1ECTIVE:
Equity Funds Dividend
The %i# f E8)it* F)n"& Di.i"en" i& t $r.i"e c%$it%! %$$reci%tin
.er the #e"i)# t !n(D ter#1 S)ch &che#e& nr#%!!* in.e&t % #%0rit*
f their cr$)& in e8)itie&1 It h%& /een $r.en th%t ret)rn& fr# &tc+&- h%.e
)t$erfr#e" #&t ther +in" f in.e&t#ent& he!" .er the !n( ter#1
Equity Funds Growth
The %i# f E8)it* F)n"& (r,th i& t $r.i"e c%$it%! %$$reci%tin
.er the #e"i)# t !n(D ter#1 S)ch &che#e& nr#%!!* in.e&t % #%0rit*
f their cr$)& in e8)itie&1 It h%& /een $r.en th%t ret)rn& fr# &tc+&- h%.e
)t$erfr#e" #&t ther +in" f in.e&t#ent& he!" .er the !n( ter#1
Balanced Funds Dividend
The %i# f /%!%nce" f)n"& "i.i"en" i& t $r.i"e /th "i.i"en" %n"
re()!%r inc#e1 S)ch &che#e& $eri"ic%!!* "i&tri/)te % $%rt f their e%rnin(
%n" in.e&t /th in e8)itie& %n" fi2e" inc#e &ec)ritie& in the $r$rtin
in"ic%te" in their ffer "c)#ent&1
Balanced Funds Growth
The %i# f /%!%nce" f)n"& i& t $r.i"e /th (r,th %n" re()!%r
inc#e1 S)ch &che#e& $eri"ic%!!* "i&tri/)te % $%rt f their e%rnin( %n"
in.e&t /th in e8)itie& %n" fi2e" inc#e &ec)ritie& in the $r$rtin
in"ic%te" in their ffer "c)#ent&1
OTHER SCHEMES:
Tax Saving Schemes
The&e &che#e& ffer t%2 re/%te& t the in.e&tr& )n"er &$ecific
$r.i&in& f the In"i%n Inc#e T%2 !%,& %& the 6.ern#ent ffer& t%2
incenti.e& fr in.e&t#ent in &$ecifie" %.en)e&1 In.e&t#ent& #%"e in E8)it*
Lin+e" S%.in(& Sche#e& (ELSS' %n" Pen&in Sche#e& %re %!!,e" %&
"e")ctin )I& GG f the Inc#e T%2 Act- ;CF;1
SPECIAL SCHEMES:
Industry Specific Schemes
In")&tr* S$ecific Sche#e& in.e&t n!* in the in")&trie& &$ecifie" in
the ffer "c)#ent1 The in.e&t#ent f the&e f)n"& i& !i#ite" t &$ecific
in")&trie& !i+e InfTech- FMC6- %n" Ph%r#%ce)tic%!& etc1
Index Schemes
In"e2 F)n"& %tte#$t t re$!ic%te the $erfr#%nce f % $%rtic)!%r
in"e2 &)ch %& the BSE Sen&e2 r the NSE >=1
Spectral Scheme
S$ectr%! F)n"& %re th&e- ,hich in.e&t e2c!)&i.e!* in % &$ecifie"
in")&tr* r % (r)$ f in")&trie& r .%ri)& &e(#ent& &)ch %& JAJ 6r)$
&h%re& r initi%! $)/!ic fferin(&1
ADVANTAGES OF INVESTING IN MUTUAL FUNDS
? Prfe&&in%! #%n%(e#ent1
? Di.er&ific%tin1
? Cn.enient %"#ini&tr%tin1
? Ret)rn $tenti%!1
? L, c%&t1
? Li8)i"it*1
? F!e2i/i!it*1
? Chice f &che#e&1
? T%2 /enefit&1
? We!! re()!%te"1
TAX - BENEFITS
? N t%2 n "i.i"en"& in the h%n"& f the in.e&tr (n!* % ;<1F;=I=
"i.i"en" "i&tri/)tin t%2 $%i" /* the f)n" /efre "i&tri/)tin f
"i.i"en"&'
? N "i.i"en" "i&tri/)tin t%2 fr e8)it* #)t)%! f)n"& (c#$!ete!*
t%2 free "i.i"en"&'
? T%2 !i%/i!it* n!* ,hen in.e&t#ent i& re"ee#e"I ,ith"r%,n (nt
e.er* *e%r'
? Ln( ter# c%$it%!E (%in& t%2 /enefit&1
? Benefit f in"e2%tin fr in.e&t#ent& he!" .er % *e%r1
PROFILES OF
SELECTED COMPANIES
PROFILES OF SELECTED COMPANIES
CONCEPT
Thi& ch%$ter i& "e.te" fr $r.i"in( cnce$t)%! fr%#e,r+ f
#)t)%! f)n"& In"i%1 Thi& ch%$ter %!& $re&ent& the t*$e& f .%ri)&
&che#e&- %".%nt%(e& %n" "r%,/%c+& %n" %!& e2$!%in& the re!e.%nt
ter#in!(*1
A M)t)%! f)n" i& % tr)&t th%t $!& the &%.in(& f % n)#/er f
in.e&tr& ,h &h%re % c##n fin%nci%! (%!1 The #ne* th)& c!!ecte" i&
then in.e&te" in c%$it%! #%r+et in&tr)#ent& &)ch %& &h%re&- "e/ent)re& %n"
ther &ec)ritie&1 The inc#e e%rne" thr)(h the&e in.e&t#ent& %n" the
c%$it%! %$$reci%tin& re%!i9e" %re &h%re" /* it& )nit h!"er& in $r$rtin t
the n)#/er f )nit& ,ne" /* the#1 Th)& % #)t)%! f)n" i& the #&t
&)it%/!e in.e&t#ent f the c##n #%n %& it ffer& %n $$rt)nit* t in.e&t
in % "i.er&ifie"- $rfe&&in%!!* #%n%(e" /%&+et f &ec)ritie& %t % re!%ti.e!*
!, c&t1 The f!, ch%rt /e!, "e&cri/e& /r%"!* the ,r+in( f #)t)%!
f)n"&1
MUTUAL FUNDS IN INDIA
ABN AMRO M)t)%! F)n" KBir!% S)n Life M)t)%! F)n"KB%n+ f
B%r"% M)t)%! F)n" (BOB M)t)%! F)n"'K4DFC M)t)%! F)n"K4SBC
M)t)%! F)n"KIN6 V*&*% M)t)%! F)n" KPr)"enti%! ICICI M)t)%!
F)n"KS%h%r% M)t)%! F)n" KSt%te B%n+ f In"i% M)t)%! F)n" (SBI'KT%t%
M)t)%! F)n"1
The cnce$t f #)t)%! f)n"& in In"i% "%te& /%c+ t the *e%r ;CF?1
The er% /et,een ;CF? %n" ;CG@ #%r+e" the e2i&tence f n!* ne #)t)%!
f)n" C#$%n* in In"i% ,ith R&1 F@/n %&&et& )n"er #%n%(e#ent (AUM'1/*
the en" f it& #n$!* er%1 The Unit Tr)&t f In"i% (UTI'- /* the en" f
the G=& "ec%"e- fe, ther #)t)%! f)n" c#$%nie& in In"i% t+ their
$&itin in #)t)%! f)n" #%r+et1
The ne, entrie& f #)t)%! f)n" c#$%nie& in In"i% ,ere SBI M)t)%!
F)n"- C%n/%n+ M)t)%! F)n"- P)n0%/ N%tin%! B%n+ M)t)%! F)n"- In"i%n
B%n+ M)t)%! F)n"- B%n+ f In"i% M)t)%! F)n"1
The &)ccee"in( "ec%"e &h,e" % ne, hri9n in In"i% #)t)%! f)n"
in")&tr*1 B* the en" f ;CC?- the tt%! AUM f the in")&tr* ,%& R&1H@=1=H
/n1 The $ri.%te &ectr f)n"& &t%rte" $enetr%tin( the f)n" f%#i!ie&1 In the
&%#e *e%r the fir&t M)t)%! F)n" Re()!%tin& c%#e int e2i&tence ,ith reD
re(i&terin( %!! #)t)%! f)n"& e2ce$t UTI1 The re()!%tin ,%& f)rther (i.en %
re.i&e" &h%$e in ;CCF1
Ath%ri Pineer ,%& the fir&t $ri.%te &ectr #)t)%! f)n" c#$%n* in
In"i% ,hich h%& n, #er(e" ,ith Fr%n+!in Te#$!etn1 J)&t %fter ten *e%r&
,ith $ri.%te &ectr $!%*er& $enetr%tin- the tt%! %&&et& r&e )$ t R&1
;<;G1=> /n 1 T"%* there %re ?? #)t)%! f)n" c#$%nie& In"i%1
ASSET MANAGEMENT COMPANIES
A&&et #%n%(e#ent c#$%nie& %re the c#$%nie& in.!.e" in the
#)t)%! f)n" /)&ine&&1 The&e c#$%nie& #%n%(e %!! the tr%n&%ctin f
#)t)%! f)n"& fr# the /e(innin( t the en"1
The f!!,in( %re the !i&t f AMCB& $er%tin( c)rrent!* in In"i%1
The* %re
A1 UTI A&&et #%n%(e#ent c#$%n* (P' !t"
B1 B%n+ &$n&re"
BB %&&et #%n%(e#ent c#$%n* !t"
C%n /%n+ in.e&t#ent #%n%(e#ent &er.ice& !t"
PNB %&&et #%n%(e#ent c#$%n* !t"
SBI f)n"& #%n%(e#ent c#$%n* !t"
C1 In&tit)tin&
6IC %&&et #%n%(e#ent c#$%n* !t"
IDBI $rinci$%! %&&et #%n%(e#ent c !t"
ILLFS %&&et #%n%(e#ent c !t"
Jee.%n /i#% &%h%*(e %&&et #%n%(e#ent c !t"
D1 Pri.%te &ectr
;1 In"i%n
Bench#%r+ %&&et #%n%(e#ent c !t"
Ch!%#%n"%!%# %&&et #%n%(e#ent c !t"
E&crt %&&et #%n%(e#ent c !t"
JM c%$it%! #%n%(e#ent !t"
At%+ M%hin"r% %&&et #%n%(e#ent !t"
S)n"%r%# %&&et #%n%(e#ent c !t"
Re!i%nce c%$it%! %&&et #%n%(e#ent !t"
<1 Jint .ent)re& D Pre "#in%nt!* In"i%n
B)r!%$ &)n !ife in&)r%nce #%n%(e#ent c !t"
Cre"it c%$it%! %&&et #%n%(e#ent c !t"
DSP Merri!! L*nch f)n" #%n%(er $.t !t"
Fir&t In"i%n #%n%(e#ent c !t"
T%t% TD ,%ter h)&e %&&et #%n%(e#ent $.t !t"
4DFC %&&et #%n%(e#ent $.t !t"
?1 Jint .ent)re& D Pre "#in%nt!* Frei(n
A!!i%nce c%$it%! %&&et #%n%(e#ent (In"i%' $.t !t"
De)t &he %&&et #%n%(e#ent (In"i%' $.t !t"
D)n"ee in.e&t#ent #%n%(e#ent re&e%rch $.t !t"
4SBC %&&et #%n%(e#ent (In"i%' $.t !t"
IN6 in.e&t#ent #%n%(e#ent (In"i%' $.t !t"
Mr(%n St%n!e* in.e&t#ent #%n%(e#ent $.t !t"
Pr)"enti%! ICICI #%n%(e#ent c !t"
St%n"%r" Ch%rtere" %&&et #%n%(e#ent c $.t !t"
S)n F L C %&&et #%n%(e#ent (In"i%' $.t !t"
Te#$!etn %&&et M%n%(e#ent (In"i%' $.t !t"
7)rich A&&et #%n%(e#ent c#$%n* (In"i%' $.t !t"
SBI (State Bank of India) Mutual Fund:
SBI #)t)%! f)n"& i& the fir&t B%n+ &$n&re" #)t)%! f)n" t !)nch
ff&hre f)n" -the In"i% #%
# f)n" ,ith % cr$)& f R& <<>cr1
A$$r2i#%te!*1 T"%* it i& the !%r(e&t B%n+ &$n&re" #)t)%! f)n"& in
In"i% The* h%.e %!re%"* !%)nche" ?> &che#e& )t f ,hich ;> h%.e
%!re%"* *ie!"e" h%n"&#e ret)rn& t in.e&tr&1 SBI #)t)%! f)n" h%&
#re th%n RS >>== cre& %& AUM1 N, it h%& %n in.e&tr /%&e .er
G!%+h& &$re%" .er ;G &che#e&1
UTI (Unit Trust of India)
UTI A&&et #%n%(e#ent c#$%n* $ri.%te !i#ite"- e&t%/!i&he" in
J%n ;H-<==?- #%n%(e& the UTI #)t)%! f)n" ,ith the &)$$rt f UTI
tr)&tee 1c#$%n* $ri.%te !i#ite" 1UTI %&&et #%n%(e#ent c#$%n*
$re&ent!* #%n%(e& cr$)& f .er r& <====crr&1 The &$n&r f UTI
#)t)%! f)n"& %re B%n+ f B%r" (BOB' P)n0%/ n%tin%! B%n+ (PNB'-
St%te B%n+ f In"i% (SBI' %n" !ife in&)r%nce Cr$r%tin f In"i%
(LOIC'1 The &che#e& f UTI #)@t)%! f)n" %re !i8)i" f)n"&- %&&et
#%n%(e#ent f)n"&- in"e2 f)n"&- e8)it* f)n"& %n" /%!%nce F)n"1
HDFC (Housing Development Finance Corporation)
HDFC #)t)%! f)n"& ,%& &et)$ n J)ne ?=-<===,ith t, &$n&r&
n%#e!* 4DFC !i#ite" %n" &t%n"%r" Life in.e&t#ent& Li#ite"1
HDFC Mutual Fund
M)t)%! F)n" h%& /een ne f the /e&t $erfr#in( #)t)%! f)n"& in the
!%&t fe, *e%r&1 4DFC A&&et M%n%(e#ent C#$%n* Li#ite" (AMC'
f)nctin& %& %n A&&et M%n%(e#ent C#$%n* fr the 4DFC M)t)%! F)n"1
AMC i& % 0int .ent)re /et,een h)&in( fin%nce (i%nt 4DFC %n"
Briti&h in.e&t#ent fir# St%n"%r" Life In.e&t#ent& Li#ite"1 It cn")ct& the
$er%tin& f the M)t)%! F)n" %n" #%n%(e& %&&et& f the &che#e&-
inc!)"in( the &che#e& !%)nche" fr# ti#e t ti#e1 A& f A)( <==F- the
f)n" h%& %&&et& f R&1<>- GC< cre& )n"er #%n%(e#ent1
IN <==?- f!!,in( % "eci&in /* the 7)rich In&)r%nce C#$%n*
(7IC'- the S$n&r f 7)rich In"i% M)t)%! F)n"- t "i.e&t it& %&&et
#%n%(e#ent /)&ine&& in In"i%- AMC h%" entere" int %n %(ree#ent ,ith
7IC t %c8)ire the %&&et #%n%(e#ent /)&ine&&1 Cn&e8)ent!*- %!! the
&che#e& f 7)rich M)t)%! F)n" in In"i% h%" /een tr%n&ferre" t 4DFC
M)t)%! F)n" %n" ren%#e" %& 4DFC &che#e&1
4ere i& % !i&t f #)t)%! f)n"& f 4DFCM
Equity Funds:
4DFC 6r,th F)n"
4DFC Ln( Ter# A".%nt%(e F)n"
4DFC In"e2 F)n"
• 4DFC In"e2 F)n" Nift* P!%n
• 4DFC In"e2 F)n" SENSE3 P!%n
• 4DFC In"e2 F)n" SENSE3 P!)& P!%n
4DFC E8)it* F)n"
4DFC C%$it%! B)i!"er F)n"
4DFC T%2 S%.er
4DFC T$ <== F)n"
4DFC Cre L S%te!!ite F)n"
4DFC Pre#ier M)!tiDC%$ F)n"
4DFC Ln( Ter# E8)it* F)n"
Balanced Funds
4DFC Chi!"renJ& 6ift F)n" In.e&t#ent P!%n
4DFC Chi!"renJ& 6ift F)n" S%.in(& P!%n
4DFC B%!%nce" F)n"
4DFC Pr)"ence F)n"
Debt Funds
4DFC Inc#e F)n"
4DFC Li8)i" F)n"
4DFC 6i!t F)n" Shrt Ter# P!%n
4DFC 6i!t F)n" Ln( Ter# P!%n
4DFC Shrt Ter# P!%n
4DFC F!%tin( R%te Inc#e F)n" Shrt Ter# P!%n
4DFC F!%tin( R%te Inc#e F)n" Ln( Ter# P!%n
4DFC Li8)i" F)n" D PREMIUM PLAN
4DFC Li8)i" F)n" D PREMIUM PLUS PLAN
4DFC Shrt Ter# P!%n D PREMIUM PLAN
4DFC Shrt Ter# P!%n D PREMIUM PLUS PLAN
4DFC Inc#e F)n" Pre#i)# P!%n
4DFC Inc#e F)n" Pre#i)# P!)& P!%n
4DFC 4i(h Intere&t F)n"
4DFC 4i(h Intere&t F)n" D Shrt Ter# P!%n
4DFC C%&h M%n%(e#ent F)n" D S%.in(& P!%n
4DFC C%&h M%n%(e#ent F)n" D C%!! P!%n
4DFCMF Mnth!* Inc#e P!%n D Shrt Ter# P!%n
4DFCMF Mnth!* Inc#e P!%n D Ln( Ter# P!%n
4DFC C%&h M%n%(e#ent F)n" D S%.in(& P!)& P!%n
4DFC M)!ti$!e 5ie!" F)n"
4DFC M)!ti$!e 5ie!" F)n" P!%n <==>
4DFC Fi2e" M%t)rit* P!%n
Awards in 2007
B)&ine&& T"%* 'Best Bank' Award
D)n L Br%"&treet N
A#eric%n E2$re&&
Cr$r%te Be&t
B%n+ A,%r" <==@
'Corporate Best Bank' Award
The B#/%* Stc+
E2ch%n(e %n"
M%&c F)n"%tinJ&
B)&ine&& fr Sci%!
Re&$n&i/i!it*
A,%r"& <==@
'Best Corporate Social Responsibility Practice'
award
O)t!+ Mne* L
NDTV Prfit
Best Bank Award in the Private sector category.
The A&i%n B%n+er
E2ce!!ence in Ret%i!
Fin%nci%! Ser.ice&
A,%r"&
Best Retail Bank in India
A&i%n B%n+er Our Managing Director Aditya Purim wins the
Leadership Achievement Award for India
1M financial Mutual Fund
One f In"i%J& fir&t $ri.%te &ectr #)t)%! f)n"&- JM #)t)%! f)n" ,%&
!%)nche" /* the ne f the /e&tD+n,n "#e&tic /r+er%(e&- JM Fin%nci%!-
,ne" /* the C#$%n* f%#i!*1 The Ni!e& C#$%n*D!e" JM 6r)$ $!%*e"
% $i.t%! r!e in the "e.e!$#ent f In"i%J& n%¢ c%$it%! #%r+et& in the
;C>=&1
JM #)t)%! f)n" i& nt % $%rt f JM Mr(%n St%n!e*- JM Fin%nci%!&
0int .ent)re ,ith Mr(%n St%n!e* fr in.e&t#ent /%n+in( %n" ther
fin%nci%! &er.ice&1 The f)n" i& &$n&re" /* JM Fin%nci%! %n" In.e&t#ent
Cn&)!t%nc* Ser.ice& Pri.%te Li#ite" %n" JM Fin%nci%! Li#ite"1
The AMC f the f)n" i& JM Fin%nci%! A&&et M%n%(e#ent Pri.%te
Li#ite"1 The AMC &t%rte" $er%tin& in Dece#/er ;CCH ,ith %
&i#)!t%ne)& !%)nch f three f)n"&- JM Li8)i" F)n" (n, JM Inc#e
F)n"'- JM E8)it* F)n" %n" JM /%!%nce" F)n"1 The c#$%n* i& he%"e" /*
Vi0%* Ae!+%r- fr#er fin%nce &ecret%r* %n" %".i&r t the (.ern#ent f
In"i%- %& ch%ir#%n f the /%r"1
A& f A)( <==F- the f)n" h%& %&&et& f .er R&1H- <H; crre )n"er
#%n%(e#ent1
Debt Funds
JM Inc#e
JM Inc#e In&tit)tin%!
JM E8)it* L Deri.%ti.e
JM Shrt Ter#
JM Shrt Ter# In&tit)tin%!
JM F!%ter Ln( Ter#
JM F!%ter Shrt Ter#
JM FMP O)%rter!* SA?
JM FMP O)%rter!* SB?
JM 4i(h Li8)i"it*
JM 4i(h Li8)i"it* In&tit)tin%!
JM 4i(h Li8)i"it* S)$er In&tit)tin%!
Gilt Fund
JM 6DSec PF
JM 6DSec PF $!)&
JM 6DSec Re()!%r
Equity Funds
JM E8)it*
JM B%&ic F)n"
JM A)t&ectr F)n"
JM 4e%!thc%re Sectr F)n"
MIP
JM MIP Di.i"en" Mnth!*
JM MIP Di.i"en" O)%rter!*
JM MIP Di.i"en" 5e%r!*
JM MIP 6r,th
Balanced Funds
JM B%!%nce" 6r,th
JM B%!%nce" Di.i"en"
PERFORMANCE
EVALUATION OF
SELECTED
MUTUALFUNDS
PERFORMANCE EVALUATION OF SELECTED MUTUALFUNDS
EVALUTATION OF MUTUAL FUNDS:
In In"i%- %t $re&ent- there %re #%n* #)t)%! f)n"& %& %!& in.e&t#ent
c#$%nie& $er%tin( /th in the $)/!ic &ectr %& ,e!! %& in the $ri.%te
&ectr1 The&e c#$ete ,ith e%ch ther fr #/i!i9in( the in.e&t#ent f)n"&
,ith in"i.i")%! in.e&tr& %n" ther r(%ni9%tin& "e&ir)& f $!%cin( their
f)n"& ,ith the&e #)t)%! f)n"& ,)!" !i+e t +n, the c#$%r%ti.e
$erfr#%nce f e%ch & %& t &e!ect the /e&t #)t)%! f)n" r in.e&t#ent
c#$%n*1 Fr thi&- e.%!)%tin f the $erfr#%nce f #)t)%! f)n"& %n" their
&che#e& i& necc&&%r*1
PERFORMANCE MEASURES OF MUTUAL FUNDS
In r"er t "eter#ine the ri&+ %"0)&te" ret)rn& f in.e&tin( $rtf!i-
&e.er%! e#inent %)thr& h%.e ,r+e" &ince ;CF=B& t "e.e!$ c#$&ite
$erfr#%nce in"ice& t e.%!)%te % $rtf!i /* c#$%rin( %!tern%ti.e
$rtf!i ,ithin % $%rtic)!%r ri&+ c!%&&1 The #&t i#$rt%nt %n" ,i"e!* )&e"
#e%&)re& f $erfr#%nce f M)t)%! F)n"& %reM
1 The Tre*nrB& Me%&)re
2 The Sh%r$eB& Me%&)re
3 The Jen&nB& M"e!
MEASURING MUTUAL FUNDS RETURN
The fir&t &te$ in #)t)%! f)n" e.%!)%tin i& c%!c)!%tin f the r%te f
ret)rn e%rne" .er the h!"in( $eri"1 Ret)rn #%* /e "efine" t inc!)"e
ch%n(e& in the .%!)e f the #)t)%! f)n" .er the h!"in( #)t)%! f)n" $!)&
%n* inc#e e%rne" .er the $eri"1 4,e.er- in the c%&e f #)t)%! f)n"&-
")rin( the h!"in( $eri"- C%&h inf!,& int the f)n" %n" c%&h ,ith"r%,%!&
fr# the f)n" #%* cc)r1 The )nitD.%!)e #eth" #%* /e )&e" t c%!c)!%te
ret)rn in thi& c%&e1
The ne $eri" r%te f ret)rn- r- fr % #)t)%! f)n" #%* then /e
"efine" %& the ch%n(e in the $er )nit net %&&et .%!)e (NAV'- $!)& itB& $er
)nit c%&h "i&/)r&e#ent& (D' %n" $er )nit c%$it%! (%in& "i&/)r&e#ent& (C'
&)ch %& /n)& &h%re&- it #%* /e c%!c)!%te" %&1
R%$P (NAVtDNAVtD;' Q DT Q C
NAV
t
D
;
Were
NAVt P NAV $er )nit %t the en" f the h!"in( $eri"
NAVtD; P NAV $er )nit %t the /e(innin( f the h!"in( $eri"
Dt P C%&h "i&/)r&e#ent& $er )nit ")rin( the h!"in( $eri"
Ct P C%$it%! (%in& "i&/)r&e#ent& $er )nit ")rin( the h!"in(
$eri"
Thi& fr#)!% (i.e& the h!"in( $eri" *ie!" r r%te f ret)rn e%rne"
n % #)t)%! f)n"1 Thi& #%* /e e2$re&&e" %& % $ercent%(e1
RISK AD1USTED RETURNS
Ri&+ free r%te f intere&t i& the ret)rn th%t %n in.e&tr c%n e%rn in %
ri&+ !e&& &ec)rit*- i1e1- ,ith)t /e%rin( %n* ri&+1 The ret)rn e%rne" .er %n"
%/.e the ri&+ free r%te i& the ri&+ $re#i)# th%t i& the re,%r" fr /e%rin(
ri&+1
THE SHARPE`s MEASURE:
In thi& #"e!- $erfr#%nce f f)n" i& e.%!)%te" n the /%&i& f
Sh%r$e r%ti- ,hich i& r%ti f ret)rn& (ener%te" /* the f)n" .er %n" %/.e
ri&+ free ret)rn %n" the tt%! ri&+ %&&ci%te" ,ith it1 Accr"in( t Sh%r$e it
i& the tt%! "i&+ f the f)n" th%t the in.e&tr& %re cncerne" %/)t1 S- thi&
#"e! e.%!)%te& f)n"& n the /%&i& f re,%r" $er )nit f tt%! ri&+
Prtf!i %.er%(e ret)rn N Ri&+ free r%te f ret)rn
Sh%r$e in"e2 P DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD
St%n"%r" "e.i%tin f the $rtf!i ret)rn
S*#/!ic%!!*- it c%n /e ,ritten %&M
(R
p
- Rf )
Sp ÷ ---------------------------
?p
Where
Sp ÷ Sharpe index
Rp ÷ Portfolio average return
Rf ÷ Risk free rate of return
?p ÷ Standard deviation of the portfolio return
Whi!e % hi(h %n" $&iti.e Sh%r$e r%ti &h,& % &)$erir ri&+ %"0)&te"
$erfr#%nce f % f)n"- % !, %n" ne(%ti.e Sh%r$e r%ti i& %n in"ic%tin f
)nf%.r%/!e $erfr#%nce1
THE TREYNOR`s MEASURE:
It ,%& "e.e!$e" /* J%c+ Tre*nr1 Tre*nrB& In"e2 i& % r%ti f
ret)rn (ener%te" /* the f)n" .er %n" %/.e ri&+ free ret)rn (i1e1
6.ern#ent &ec)ritie&- Tre%&)r* /i!!&'- ")rin( the (i.en $eri" f ti#e
%n" &*&te#%tic ri&+ %&&ci%te" ,ith /et%1
(R
ap
- F
ro
)
Tenor`s Index ÷ ----------------------
?p
Where
R
p
= represent the return of fund
R
f =
represents the risk free rate
?p = represent beta of funds
A!! ri&+D%.er&e in.e&tr& ,)!" !i+e t #%2i#i9e thi& .%!)e1
Whi!e % hi(h %n" $&iti.e tre*nrB& in"e2 &h,& % &)$erir ri&+ %"0)&te"
$erfr#%nce f f)n"- % !, %n" ne(%ti.e tre*nrB& in"e2 i& %n in"ic%tin
f )nf%.r%/!e $erfr#%nce&
1ENSENs MODEL:
J%n&enB& #"e! $r$&e& %nther ri&+ %"0)&te" $erfr#%nce
#e%&)re1 Mich%e! Jen&n "e.e!$e" thi& #e%&)re %n" i& &#ethin(
referre" %& the "ifferenti%! ret)rn #eth"1 Thi& #e%&)re in.!.e&
e.%!)%tin f ret)rn& th%t the f)n" h%& (ener%te" V& the ret)rn %ct)%!!*
)t f the f)n" (i.en %t th%t !e.e! f &*&te#%tic ri&+1 The &)r$!)&
/et,een the t, ret)rn& in c%!!e" A!$h%- ,hich #e%&)re& the
$erfr#%nce f % f)n" c#$%re" ,ith the %ct)%! ret)rn& .er the $eri"1
Re8)ire" r%te f ret)rn n f)n" %t % (i.en !e.e! f Bet%
C%n /e c%!c)!%te" %&M
?
p
R
p
÷ ----------
?
p
Where _
?
p
÷ R
p
- R
p
_
R
p
P R
f
Q ?
p
( R
m
- R
f
)
1p ÷ 1ensen`s Ratio
?p ÷ The intercept
?p ÷ A measure of systematic risk
Rp ÷ Average return of portfolio
Rf ÷ Risk free rate of return
Rm ÷ Average market return
R
#
i& %.er%(e #%r+et ret)rn ")rin( the (i.en $eri"1
F
r
i& the ri&+ free r%te f ret)rn
Performance Measurement
In thi& &ectin- %n %tte#$t i& #%"e t #e%&)re the $erfr#%nce f
&e!ecte" #)t)%! f)n"&1 Fr thi& $)r$&e the #"e!& "e.e!$e" /*
Sh%r$e- Tre* nr %n" Jen&een ,ere )&e"1 Befre t%+in( )$ thi&- the
"et%i!& %/)t ret)rn& f &e!ecte" f)n"& %re $re&ente"1 In %""itin- t h%.e
%n i"e% %/)t .!%ti!it* f f)n"& t #%r+et ret)rn- the Bet% .%!)e& %n"
&t%n"%r" "e.i%tin .%!)e& %re c%!c)!%te"1
Table 1.1: Equity Fund Dividends
Year Percentage of return
SBI UTI HDFC 1M
financial
Market
Index
2005 9.70 6.65 13.25 4.18 9.60
2006 9.15 2.35 5.00 0.692 11.41
2007 12.93 10.70 8.70 11.40 10.10
AVG 10.40 6.57 8.98 5.43 10.37
Source: www.mutualfundsindia.com
www.bseindia.com
The %.er%(e ret)rn f SBI i& ;=1H=R %n" hi(he&t i& ;<1C?R %n" !,e&t
i& C1;>R it i& cnc!)"e" th%t the ret)rn i& incre%&e" tren"1
The ret)rn f UTI f)n" &h,& th%t it h%& e%rne" hi(he&t ret)rn f ;=1@=
R n it& in.e&t#ent& in the *e%r <==@1 It h%&- n %n AV6 (ener%te" %
ret)rn f F1>@R fr the $eri" fr# <==>D<==@1
A.er%(e ret)rn f 4DFC i& G1C@GR %n" the hi(he&t in <==> i& ;?1<>R
%n" !,e&t i& in <==F i& "ecre%&e" >1==R1
The ret)rn f JM fin%nci%! f)n" &h,& th%t e%rne" hi(he&t ret)rn f
;;1H=R n it& in.e&t#ent& in the *e%r <==@1 An" !,e&t i& in <==F i&
"ecre%&e" =1FC<R1 It h%& n AV6 (ener%te" ret)rn f >1H?Rfr the $eri"
fr# <==>D<==@1
M%r+et ret)rn i& in <==> C1F=R %n" in <==F ;;1H@R %n" in <==@ i&
;=1;=>R1 S- it cnc!)"e" th%t #%r+et ret)rn %!& hi(h in <==> /)t it
"ecre%&e" in <==F %n" incre%&e" in <==@1
The %.er%(e ret)rn f SBI i& #re th%n ther #)t)%!f)n"&
Table1.2: Equity fund growth
Year
Percentage of return
SBI UTI HDFC 1M
financial
Market
Index
2005 9.70 11.20 13.22 11.25 9.60
2006 10.83 3.33 5.10 10.05 11.41
2007 11.68 7.07 11.65 11.65 10.10
AVG 10.73 7.20 9.99 10.98 10.37
S)rceMwww.mutualfundsindia.com
:www.bseindia.com
The %/.e t%/!e re.e%!& th%t SBI #%"e % hi(he&t ret)rn f ;;1FGR n
it& in.e&t#ent *e%r <==@1%n" !,e&t i& in <==> i& "ecre%&e" C1@=R1
4,e.er it h%& e%rne" n %n %.er%(e ;=1@?R ret)rn n in.e&t#ent fr the
$eri" <==>D =F
The UTI f)n" #%"e hi(he&t ret)rn f ;;1<=R n it& in.e&t#ent in the
*e%r <==> %n" !,e&t i& in <==F i& "ecre%&e" ?1??R1n %n %.er%(e the f)n"
#%"e % ret)rn @1<=R in $eri" <==>D=@1
The ret)rn f 4DFC f)n" %!& f!!,in( thi& &%#e tren"1 It h%& nee"
hi(he&t ret)rn ;?1<<R %n" !,e&t i& in <==F i& "ecre%&e" >1;=R1 The f)n"
h,e.er %.er%(e ret)rn f C1CCR ")rin( $eri"1
The JM fin%nci%! f)n" #%"e % hi(he&t ret)rn f ;;1F>R n it& in.e&t#ent&
in the *e%r <==F it h%& %!& %n" !,e&t ret)rn f ;=1=>R in *e%r <==F n
%.er%(e ret)rn f ;=1CGR fr the $eri" <==>D=@1
M%r+et ret)rn f)n" %!& f!!,in( &%#e tren" it h%& #%"e hi(he&t
ret)rn f ;;1H;R it in.e&t#ent in *e%r <==F %n" !,e&t ret)rn f C1F=R in
*e%r <==>1 The f)n" he,er AV6 ret)rn f ;=1?@R ")rin( the $eri"1
The c#$%r%ti.e %n%!*&i& thi& fre f)n"& &h,& th%t JM fin%nce f)n"
#%"e % hi(he&t %.er%(e ret)rn ;=1CGR %n" n it& in.e&t#ent fr the $eri"
<==>D=@- f!!,e" /* SBI %n" UTI %n" 4DFC f)n" th%t r"er-
Table 1.3: Balanced Fund Dividend
Years Percentage of return
SBI UTI HDFC 1M
financial
Market
Index
2005 6.3 8.93 -1.73 11.43 9.60
2006 8.13 19 3.375 5.65 11.41
2007 9.45 5.58 12.42 10.30 10.10
AVG 7.98 11.17 4.69 9.13 10.37
Source : www.mutualfundsindia.com
Mwww.bseindia.com
Fr the %/.e c%n /e cnc!)"e" th%t SBI f)n" #%"e hi(he&t ret)rn
f C1H>R n it in.e&t#ent fr the *e%r <==@ %n" !,e&t ret)rn f F1?=R-in
<==>1 4,e.er the f)n" #%"e n %n AV6 @1CGR fr $eri" <==>D=@-
The ret)rn f UTI f)n" &h,& th%t it h%& e%rne" % hi(he&t ret)rn f
;C1==R n it& in.e&t#ent in *e%r <==F %n" !,e&t ret)rn f >1>GR in <==@1
it h%& n %n AV6 % ret)rn f ;;1;@R fr $eri" <==>D=@1
In thi& f)n" %!& the ret)rn f 4DFC f)n" %!& f!!,in( the &%#e
tren"1 It h%& #%"e hi(he&t ret)rn ;<1H<R n it& in.e&t#ent in the *e%r
<==@1 it h%& %!& inc)rre" !&e f ;1@?Rn in *e%r <==>1 it h%& n %n %.er%(e
(ener%te" % ret)rn f H1FCR fr the $eri" <==>D=@1
The ret)rn f JM fin%nce f)n" &h, th%t h%& e%rne" % hi(he&t ret)rn
f ;;1H?R n in.e&t#ent in the *e%r <==> %n" !,e&t ret)rn f >1F>R in
*e%r <==F1the f)n" h,e.er AV6 f C1;?R ")rin( $eri"1
The ret)rn f #%r+et ret)rn f)n" %!& f!!,in( the &%#e tren" it h%&
#%"e hi(he&t ret)rn f ;=1H;R %n" !,e&t ret)rn f C1F=R in *e%r <==>1the
f)n" h,e.er AV6 f ;=1?@R ")rin( $eri"- the %.er%(e ret)rn UTI #re
then ther #)t)%! f)n"&1
Table 1.4: Balanced Fund Growth
Years Percentage of return
SBI UTI HDFC 1M
financial
Market
Index
2005 10.60 5.78 6.48 6.59 9.60
2006 7.78 5.85 6.43 9.55 11.41
2007 10.78 8.28 6.70 10.38 10.70
AVG 9.74 6.64 6.53 8.84 10.37
Source : www.mutualfundsindia.com
Mwww.bseindia.com
It& c%n /&er.e" fr# the %/.e t%/!e th%t SBI f)n" #%"e ret)rn f
%/)t ;=1@GR1n itB& in.e&t in the *e%r <==@1 it h%& !,e&t ret)rn f @1@GR
in the *e%r <==F1 The f)n" %!& #%"e %n AV6 ret)rn f %/)t C=@< ")rin(
$eri" fr# <==>t <==@1
The ret)rn f UTI f)n" &h, th%t it e%rne" % hi(he&t ret)rn f G=1<GR
n it& in.e&t#ent& in the *e%r <==@%n" !,e&t ret)rn f >=1@GR in <==>1 It
h%& n %n %.er%(e (ener%te" % ret)rn f F1FHR fr the $eri" fr# <==>D=@1
The 4DEFC f)n" h%& #%"e % hi(he&t ret)rn f F1@=R n it&
in.e&t#ent fr the *e%r <==@%n" !,e&t ret)rn f F1H?Rin <==F1the f)n"
#%"e %.er%(e ret)rn f F1>?R ")rin( the $eri"1
The JM fin%nci%! f)n" h%& #%" % hi(he&t ret)rn f ;=1?GR n it&
in.e&t#ent fr the *e%r <==@ %n" !,e&t ret)rn f F1>CRin <==>1 F)n"
#%"e %n AV6 ret)rn f G1GHR in the $eri" fr# <==>D<==@1
The %.er%(e ret)rn f ;=1?@R #%r+et in"e2 #re then ther #)t)%!
f)n"&1
Table – 2: Index Return
year Absolute returnsº
2005 9.60
2006 11.41
2007 10.10
AVG return 10.37
S)rceM www.bseindia.com
Fr# the %/.e t%/!e it c%n /e nte" th%t the in"e2 #%"e hi(he&t f
;;1H;R fr the *e%r <==F in"e2 ret)rn %!& inc)rre" % !,e&t f C1F=R in
*e%r <==> %n n %.er%(e the in"e2 #%"e % ;=1?@Rfr the $eri" <==>D=@1
QUANTIFICATION OF RISK
E2$ecte" Ri&+ (S' P ? L
n
( R
aj
- E (ra))
2
P
j
1÷1
Where
R
%0
P Ret)rn n &ec)rit* “%” )n"er e.ent f “0”
E (r%' P E2$ecte" %.er%(e ret)rn n &ec)rit* “%”
P
0
P Pr/%/i!it* f e.ent “0”
Thi& fr#)!% i& )&e" t fin" the e2$ecte" ri&+1 B)t in the &t)"* #*
/0ecti.e i& t c%!c)!%te the 4i&tric%! Ri&+1 The fr#)!% i&MD
L
n
( R
aj
– Ra)
2
Historical Risk (ó) ÷
1÷1 ??????
N
Where
R
%0
P Ret)rn n &ec)rit* “%” in $eri" f “0”
R% P A.er%(e ret)rn f &ec)rit* “%”
N P N f /&er.%tin&
The e2$%n"e" fr# f the fr#)!% i&M
Historical Risk (ó) ÷ ?
(R
a1
- R
a
)
2
+(R
a2
- R
a
)
2
+ - - - - - - - - +(R
an
-
R
a
)
2
Tables of Standard Deviations
Table 3.1: Equity fund Dividend
Fund name 3year Average
Return
Standard Deviation
SBI 10.40 9.81
UTI 6.57 11.96
HDFC 8.98 11.32
1M financial 5.43 15.43
Market index 10.37 7.29
Source: www.mutualfundsindia.com
M www.bseindia.com
Fr# the %/.e t%/!e $re&ent the %.er%(e ret)rn %n" “?” "et%i!&1
Fr# the t%/!e it c%n /e &een th%t SBI f)n" #%+in( hi(he&t %.er%(e ret)rn
f ;=1HR ")rin( the $eri"1 4,e.er itB& %!& f%cin( hi(he&t “?” f ;>1H?
f %!! the f)r f)n"&1 The UTI f)n" %n" 4DFC f)n" %n" JM fin%nci%!
f)n"& /th %re #%+in( &i#i!r %#)nt %.er%(e ret)rn f %/)t ;=1?@R /)t
#%r+et in"e2 i& f%cin( hi(he&t” ?” f @1<C1
Table 3.2: Equity fund Growth
Fund name 3year Average
return
Standard Deviation
SBI 10.73 12.09
UTI 7.20 7.60
HDFC 9.99 11.56
1M financial 10.98 11.94
Source: www.mutualfundsindia.com
M www.bseindia.com
Fr# the %/.e .%!)e it cn /e cnc!)"e" th%t c#$%re" ,ith ther
f)n"& JM fin%nci%! f)n" #%+in( #re ret)rn& %n" /e%rin( ri&+ f ;;1CH1
Where%& SBI f)n" #%+in( ;=1@?R %.er%(e ret)rn ,ith the”?” f ;<1=C1 It
h%& .er* !, ri&+ %& c#$%re" t UTI f)n" %n" 4DFC f)n"1
Table3.3: Balanced fund Dividend
Fund name 3year Average
return
Standard Deviation
SBI
7.98
9.39
UTI 11.17 17.98
HDFC 4.69 15.67
1M financial 9.136 7.95
Source: www.mutualfundsindia.com
M www.bseindia.com
Fr# the (i.en .%!)e& it i& f)n" th%t UTI f)n" i& e%rnin( ;;1;@R
AV6 ret)rn ,ith the hi(her ? %& c#$%re" t ther f)n"&
Table 3.4Balanced fund Growth1
Fund name 3years average
return
Standard Deviation
SBI 9.72
8.68
UTI
6.64 6.75
HDFC
6.53 8.37
1M financial
8.84 8.45
Source: www.mutualfundsindia.com
M www.bseindia.com
Fr# the (i.en .%!)e& it i& f)n" th%t SBI f)n" i& e%rnin(
C1@<RAV6ret)rn ,ith hi(he&t “?” %& c#$%re" t ther f)n"&1
Concept of Beta
Bet% i& % #e%&)re f re!%ti.e ri&+ f % &ec)rit* r it& &en&iti.it* t the
#.e#ent& in the #%r+et1 It i& % #e%&)re f .!%ti!it* r the &*&te#%tic ri&+
f%ce" /* %n %&&et r $rtf!i r $r0ect1 It i& c%!c)!%te" /* )&in( the
c.%ri%nce /et,een ret)rn& f %&&et& %n" ret)rn& f the #%r+et $rtf!i-
"i.i"e" /* .%ri%nce f ret)rn n the #%r+et $rtf!i1 It &h,& h, the
$rice f % &ec)rit* re&$n"& t #%r+et f%ctr&1 M%r+et ret)rn i& #e%&)re"
/* the %.er%(e ret)rn f % !%r(e &%#$!e f &tc+&1
The /et% fr the .er%!! #%r+et i& e8)%! t ;1== %n" ther /et%& %re
.ie,e" in re!%tin t thi& .%!)e1 Bet%& c%n /e $&iti.e r ne(%ti.e1 M%n*
!%r(e /r+er%(e fir#&- in.e&t#ent c#$%nie& %n" fin%nci%! cn&)!t%nt&
$r.i"e /et% fr !%r(e n)#/er f &tc+&1
BETA CALCULATION
NLXY - LXLY
þ ÷
NLX
2
– (L X)
2
Where
N P N f /&er.%tin&
LX P S)# f 3 ret)rn& (4ere 3 i& #%r+et ret)rn'
LY P S)# f 5 ret)rn& (4ere 5 i& % $%rtic)!%r f)n" ret)rn'
X
2
P 3 T 3
UXY P S)# f 3 T 5
Calculation of Beta
Table 4.1: Equity fund Dividend
Fund
name
?X ?Y ?XY ?X
2
?
SBI 127.1 124.48 1738.00 2501.63 0.36
UTI 78.8 124.48 1051.18 2234.50 0.14
HDFC 107.80 124.48 1473.95 2508.06 0..23
1M
financial 65.07 124.48 1024.17 3211.26 0.17
Source: www.mutualfundsindia.com
M www.bseindia.com
It i& /&er.e" fr# the %/.e t%/!e th%t SBI f)n" re&$n"in( t the
#%r+et r%te /* =1?F ti#e& ,here%& UTI f)n" i& re&$n"in( n!* =1;H ti#e&
t the #%r+et ret)rn1 The SBI f)n" i& #re .!%ti!e th%n UTI %n" 4DFC
%n" JM fin%nci%! f)n"&1
Table4.2: Equity fund Growth
Fund
name
?x ?y ?xy ?x
2
?
SBI 128.8 124.48 1967.85 3138.60 0.38
UTI 86.38 124.48 884.38 1315.77 -0.016
HDFC 119.90 124.48 1276.2 2691.89 0.112
1M
financial
132.10 124.48 1753.21 3165.69 0.22
Source: www.mutualfundsindia.com
M www.bseindia.com
It i& &een fr# the t%/!e th%t SBI f)n"- 4DFC f)n" %n" JM fin%nci%!
#re th%n ne ti#e& f #%r+et ret)rn ,here%& UTI f)n" re&$n"in( n!*
D=1=;F ti#e&1
Table 4.3: Balanced Fund Dividend
Fund
Name
?x ?y ?xy ?x
2
?
SBI 95.60 124.48 1219.06 1820.56 0.21
UTI 111.20 124.48 1230.01 4912.77 0.019
HDFC 56.30 124.48 1194.68 3211.23 0.21
1M
financial
111.20 124.48 1230.01 4912.77 0.22
Source: www.mutualfundsindia.com
M www.bseindia.com
A/.e t%/!e fr# it c%n /e cnc!)"e" th%t th%t the SBI f)n" %n"
4DFC f)n" %n" JM fin%nci%! f)n" %re re&$n"in( #re th%n ne ti#e f
#%r+et ret)rn1 Where%& UTI f)n" re&$n"in( n!* =1=;C t)ne&1
Table 4.4 Balanced fund Dividend
Fund
Name
?x ?y ?xy ?x
2
?
SBI 116.60 124.48 1634.31 2038.36 0.45
UTI 79.60 124.48 1115.59 1075.92 0.53
HDFC 78.40 124.48 1332.85 1353.71 0.61
1M
financial
106.06 124.48 1412.33 1795.29 0.36
Source: www.mutualfundsindia.com
M www.bseindia.com
Fr# the %/.e t%/!e it c%n /e cnc!)"e" th%t the SBI f)n"- UTI
f)n" %n" 4DFC f)n" %re re&$n"in( #re th%n ti#e& f #%r+et ret)rn1
Where%& JM fin%nci%! f)n" re&$n"in( n!* =1?F ti#e&1
Sharpe Measurement Ratio Tables
Table 5.1: Equity Fund Dividend
Fund
Name
Rp Rf
?p
Sharpe
Ratio
Rank
SBI 10.59 6.50 9.81 0.416 I
UTI 6.59 6.50 11.98 0.007 III
HDFC 8.98 6.50 11.32 0.219 II
1M
financial
5.42 6.50 15.43 -0.0069 IV
Market
Index
10.38 6.50 7.29 0.532 -
Source: www.mutualfundsindia.com
M www.bseindia.com
The t%/!e &h,& th%t SBI f)n" %& $er Sh%r$e #e%&)re#ent i& r%n+e"
ne ,here&e 4DFC f)n" (ettin( IIn" r%n+1 The UTI f)n" (ettin( IIIr"
r%n+1 JM fin%nci%! (ettin( IVth r%n+ in the Sh%r$e e.%!)%tin1
A& c#$%re" % #%r+et in"e2 SBI f)n" i& e%rnin( (" ret)rn %n"
UTI f)n" i& (ettin( /etter ret)rn& ,here %& 4DFC f)n" i& /etter ret)rn
,here JM fin%nci%! f)n" i& (ettin( ,here%& ret)rn&1
Table 5.2: Equity Fund Growth
Fund
Name
Rp Rf
?p
Sharpe
Ratio
Rank
SBI 10.73 6.50 12.09 0.34 I
UTI 7.19 6.50 7.60 0.090 IV
HDFC 9.99 6.50 11.56 0.301 III
1M
financial
11.00 6.50 11.94 0.376 II
Source: www.mutualfundsindia.com
M www.bseindia.com
A& $er &h%r$e #e%&)re#ent- SBI f)n" i& r%n+e" I&t- JM fin%nci%! f)n" i&
r%n+e" IIn" %n" 4DFC f)n" i& III r%n+e"- %n" UTI f)n" i& IVth r%n+e"1 B*
c#$%rin( ,ith #%r+et ret)rn %!! the f)n"& %re (ettin( !, ret)rn
Table 5.3: Balanced Fund Dividend
Fund
Name
Rp Rf
?p
Sharpe
Ratio
Rank
SBI 7.96 6.50 9.39 0.155 II
UTI 9.26 6.50 17.90 0.154 III
HDFC 4.69 6.50 15.67 -0.115 IV
1M
financial
9.12 6.50 7.95 0.329 I
Source: www.mutualfundsindia.com
M www.bseindia.com
Accr"in( &h%r$e #"e!- JM fin%nci%! f)n" i& $!%ce" Fir&t r%n+e"
SBI f)n" %n" UTI f)n" &h%r$e IIIr" %n" IIn" r%n+e"- 4DFC f)n" i& $!%ce"
IVth r%n+& re&$ecti.e!* c#$%n* ,ith #%r+et ret)rn %! the f)n"& ne
$erfr#in( ,e!!1
Table 5.4: Balanced Fund Growth
Fund
Name
Rp Rf
?p
Sharpe
Ratio
Rank
SBI 9.71 6.50 8.68 0.369 I
UTI 6.63 6.50 6.75 0.019 III
HDFC 6.52 6.50 8.37 0.003 IV
1M
financial
8.88 6.50 8.45 0.281 II
Source: www.mutualfundsindia.com
M www.bseindia.com
Accr"in( &h%r$e #"e!- SBI f)n" i& $!%ce" fir&t r%n+ JM fin%nci%!
%n" UTI f)n" &h%re IIIr" %n" IIn" r%n+ 4DFC f)n" i& $!%ce" IVth r%n+e"1
Re&$ecti.e!* c#$%rin( ,ith #%r+et ret)rn %!! f)n" %re $erfr#in( ,e!!1
B* c#$%rin( %!! the f)r &che#e& i1e1 SBI- UTI- %n" 4DFC %n"
f)n" it c%n /e f)n" th%t the /%!%nce" f)n" (r,th i& (ettin( (" ret)rn
th%n the %n* &che#e& the /%!%nce" "i.i"en" &che#e i& /e%rin( #re ri&+
the# the %n* ther &che#e&
Treynor Measurement Ratio Tables
Table 6.1: Equity Fund Dividend
Fund
Name
Rp Rf
?p
Trey nor
Ratio
Rank
SBI 10.59 6.50 0.36 14.13 I
UTI 6.59 6.50 0.14 0.642 III
HDFC 8.99 6.50 0.23 10.78 II
1M
financial
5.42 6.50 0.17 -69.352 IV
Market
Index
10.38 6.50 1 3.88 -
Source: www.mutualfundsindia.com
M www.bseindia.com
A/.e t%/!e re.e%!& th%t SBI f)n" r%n+e" fir&t in ter#& f #%+in(
ret)rn& ,here%& IIn" r%n+ &h%re" /* 4DFC f)n" %n" IIIr" r%n+ /* UTI
f)n" %n" the IVth r%n+ JM fin%nci%! in ter#& f #%+in( ret)rn f in re!%tin(
t #%r+et ret)rn&1
C#$%rin( ,ith the #%r+et ret)rn %(%in SBI f)n" i& (ettin( ("
ret)rn&1 UTI f)n" i& e%rne" /etter ret)rn&- ,here%& 4DFC f)n" i& e%rne"
/etter ret)rn& JM fin%nci%! f)n" i& nt #%+in( &)rricient1
Table 6.2: Equity Fund Growth
Fund
Name
Rp Rf
?p
Trey nor
Ratio
Rank
SBI 10.73 6.50 0.38 11.13 I
UTI 7.19 6.50 0.016 -43.12 IV
HDFC 9.99 6.50 0.42 10.78 II
1M
financial
11.00 6.50 0.22 -6.352 III
Source: www.mutualfundsindia.com
M www.bseindia.com
Fr# the (i.en t%/!e it i& /&er.e" th%t SBI f)n" i& r%n+e" Fir&t-
4DFC f)n" %n" JM fin%nci%! f)n" %re r%n+e" IIIr" %n" IIn" %n" UTI f)n"
i& r%n+e" IVth re&$ecti.e!*1 When c#$%re" ,ith #%r+et ret)rn %!! the
f)n"& %re nt (ettin( &)fficient ret)rn&
Table 6.3 Balanced Fund Dividends
Fund
Name
Rp Rf
?p
Trey nor
Ratio
Rank
SBI 7.96 6.50 0.21 6.952 III
UTI 9.26 6.50 0.019 145.26 I
HDFC 4.69 6.50 0.21 -8.61 IV
1M
financial
9.12 6.50 0.22 11.90 II
Source: www.mutualfundsindia.com
M www.bseindia.com
O/&er.in( (i.en t%/!e it i& +n,n th%t UTI f)n" i& r%n+e" Fir&t JM
fin%nci%! f)n" IIn" SBI f)n" i& IIIr" %n" 4DFC f)n" i& IVth c#$%rin(
,ith #%r+et ret)rn %!! the f)n"& %re nt (ettin( &)fficient ret)rn&1
Table 6.4 Balanced Fund Growth
Fund
Name
Rp Rf
?p
Trey nor
Ratio
Rank
SBI 9.71 6.50 0.415 7.33 I
UTI 6.63 6.50 0.53 0.245 III
HDFC 6.53 6.50 0.37 0.081 IV
1M
financial
8.88 6.50 0.36 6.611 II
Source: www.mutualfundsindia.com
M www.bseindia.com
Fr# the (i.en it i& /&er.e" th%t SBI f)n" i& r%n+e" Fir&t JM
fin%nci%! %n" UTI f)n" %re r%n+e" IIIr" %n" IIn" %n" 4DFC f)n" IVth
re&$ecti.e!* c#$%rin( ,ith #%r+et ret)rn %!! the f)n" %re #%+in( ("
ret)rn1
Accr"in( t ter*nr& #e%&)re#ent %!& /%!%nce" f)n" (r,th
&che#e i& $erfr#in( ,e!! %& c#$%re" t the #%r+et ret)rn %n" /%!%nce"
(r,th f)n" i& nt $erfr#in( f the /ench #%r+et i1e1- M%r+et ret)rn1
1ENSEN PERFORMANCE MEASUREMENT RATIO TABLE
Table 7.1: Equity Fund Dividend
Fund Name
R
m
R
f
þ
p
R
p R
p
o
p
1
p Rank
SBI 10.37 6.50 0.36 10.40 26.54 -16.41- -44.83 I
UTI 10.37 6.50 0.14 6.57 25.70 -19.13 136.64 IV
HDFC 10.37 6.50 0.23 8.98 -25.78 -169.80 -73.14 II
1M financial 10.37 6.50 0.17. 5.43 25.81 -20.38 -119.8 III
Source: www.mutualfundsindia.com
M www.bseindia.com
A& $er Jen&en $erfr#%nce #e%&)re#ent the SBI f)n" r%n+e" Fir&t (ettin(
% ne(%ti.e fi()re f DHH1G? ,hich i& %n in"ic%tin th%t the #%n%(e#ent h%&
)&e" (re%ter &+i!!& in #%n%(in( the in.e&t#ent1
Where%& 4DFC r%n+e" IIn" (ettin( % $&iti.e fi()re f D@?1;H ,hich
i& #"er%te!* $erfr#in(1 4,e.er the UTI f)n" i& $erfr#in( ne(%ti.e!*-
the #%n%(e#ent f UTI f)n" f%i!e" t #%n%(e the in.e&t#ent effecti.e!*1
Table 7.2 Equity Fund Growth
Fund Name
R
m
R
f
þ
p
R
p
R
p
o
p
1
p
Rank
SBI 10.37 6.50 0.38 10.73
26.6
2
-15.89 -41.81 IV
UTI 10.37 6.50 -0.016 7.20
25.0
9
-17.89 111.12 I
HDFC 10.37 6.50 0.42 9.92
26.7
8
-16.86 -40.14 III
1M financial 10.37 6.50 0.22 10.98
26.0
0
-15.02 -6.83 II
Source: www.mutualfundsindia.com
M www.bseindia.com
Accr"in( t Jen&en #"e! %!! the f)n"& %re f%i!e" t e%rn )$ t the #%r+
ret)rn&1 The UTI F)n" r%n+e" fir&t (ettin( % fi()re f =(%$$r2'- ,hich i&
%n in"ic%tin th%t the #%n%(e#ent h%& "i" nt )&e (re%t &+i!!& in #%n%(in(
the $rtf!i1
Fr# the (i.en th%t /&er.e" UTI r%n+e" Fir&t1 Where%& JM
fin%nci%! F)n" i& r%n+e" &ecn" /* (ettin( % ne(%ti.e fi()re f !e&& then ;1
4,e.er the UTI f)n" i& $erfr#in( ne(%ti.e!*- the #%n%(e#ent f UTI
f)n" f%i!e" t #%n%(e the $rtf!i effecti.e!*
Table 7.3: Balanced Fund Dividends
Fund Name R
m
R
f
þ
p
R
p R
p
o
p
1
p Rank
SBI 10.37 6.50 0.21 7.99 25.97 -17.99 -85.66 II
UTI 10.37 6.50 0.019 11.17 25.22 -14.05 -739.47 IV
HDFC 10.37 6.50 0.21 4.69 25.97 -21.28 -101.33 III
1M financial 10.37 6.50 0.22 9.23 26.00 -16.87 -76.68 I
Source: www.mutualfundsindia.com
M www.bseindia.com
Accr"in( t Jen&en #"e! %!! the f)n"& %re f%i!e" t e%rn )$ t the
#%r+ ret)rn&1 A& c#$%re" t ther f)n"& UTI f)n" $erfr#in( ,ith ,r&t
ret)rn f N@?C1H@1 On the /%&i& f the %/.e $re&ent%tin- it c%n /e f)n"
th%t the MNC in")&tr* i& f%cin( % $r/!e#- & %!! the f)n"& %re nt (ettin(
&)fficient ret)rn&1
Table 7.4: Balanced Fund Growth
Fund Name
R
m
R
f
þ
p
R
p R
p
o
p
1
p Rank
SBI 10.37 6.50 0.45 9.72 26.89 -17.17 -38.15 III
UTI 10.37 6.50 0.53 6.64 27.20 -20.56 -38.79 II
HDFC 10.37 6.50 8.37 6.53 57.54 -51.01 -6.09 I
1M financial 10.37 6.50 0.36 8.84 26.54 -17.70 -49.16 IV
Source: www.mutualfundsindia.com
M www.bseindia.com
Accr"in( t Jen&en #"e! %!! the f)n"& %re f%i!e" t e%rn )$ t the
#%r+ ret)rn&1 The 4DFC F)n" r%n+e" fir&t (ettin( % fi()re f =(%$$r2'-
,hich i& %n in"ic%tin th%t the #%n%(e#ent h%& "i" nt )&e (re%t &+i!!& in
#%n%(in( the $rtf!i1
Where%& 4DFC F)n" i& r%n+e" &ecn" /* (ettin( % ne(%ti.e fi()re
f !e&& th%n ;1 4,e.er the 4DFC f)n" i& $erfr#in( ne(%ti.e!*- the
#%n%(e#ent f 4DFC f)n" f%i!e" t #%n%(e the $rtf!i effecti.e!*1
CONCLUSION
CONCLUSION
It i& h$ef)! th%t thi& &t)"* cre%te& %,%rene&& th%t the #)t)%! f)n"&
%re ,rth in.e&t#ent $r%ctice1 The .%ri)& &che#e& f #)t)%! f)n"&
$r.i"e the in.e&tr& ,ith % ,i"e r%n(e f in.e&t#ent& $tin& %ccr"in(
t hi& ri&+ /e%rin( c%$%citie& %n" intere&t1 Be&i"e& the* %!& (i.e % h%n"*
ret)rn t the in.e&tr&1 The $r0ect %n%!*&e& .%ri)& &che#e& f Different
C#$%nie&1
In In"i% M)t)%! f)n"& %re $!%*in( i#$rt%nt r!e1 The #)t)%! f)n"
C#$%nie& $! the &%.in(& f &#%!! in.e&tr& %n" in.e&t th&e c!!ecte"
h)(e %#)nt f f)n"& in "ifferent &ectr& f the ecn#*1 The* %re
$erfr#in( !i+e inter#e"i%r* /et,een &#%!! in.e&tr %n" the In"i%n c%$it%!
#%r+et1 In recent *e%r& #%n* #)t)%! f)n" c#$%nie& %re e&t%/!i&he"1
Thr)(h thi& c#$etitin i& incre%&e" %#n( the c#$%nie&1 T enc)nter
the c#$etitin the "ifferent c#$%nie& %re intr")cin( "ifferent t*$e& f
#)t)%! f)n" &che#e& ,ith %ttr%cti.e ret)rn& %n" !, ri&+1 S it i& %n
%".%nt%(e t the in.e&tr&-1
Fr t%+in( % "eci&in t in.e&t in #)t)%! f)n"&- the e.%!)%tin $!%*&
% (re%ter r!e1 The r%n+in(& (i.en t the #)t)%! f)n"& %ttr%ct the
in.e&t#ent /* the in.e&tr& t the re&$ecti.e f)n"&1 Fr the $)r$&e f
r%n+in( the $erfr#%nce f .%ri)& #)t)%! f)n"& the #eth"& &)ch %&
Sh%r$e1 Tre* nr %n" Jen&en ,ere %$$!ie" t the .%ri)& f)n"& in "ifferent
&che#e&1 It i& h$e" th%t the r%n+& $r.i"e" fr the f)n" in thi& ch%$ter
e2$!%in& re!%ti.e $erfr#%nce f the &che#e&1 The re!%ti.e $erfr#%nce f
"ifferent t*$e& f f)n"& %ccr"in( t "ifferent t*$e& f $erfr#%nce
#e%&)re#ent& %re e2$!%ine" in the ne2t $%(e1
FINDINGS
Accr"in( t Sh%r$e Me%&)re#ent the f!!,in( %re the cnc!)&inM
Equity Fund Dividend Scheme
The SBI F)n"- %& $er Sh%r$e #e%&)re#ent i& r%n+e" ne1 Where %&
4DFC F)n" (t &ecn" r%n+1 The SBI F)n" i& (t thir" r%n+ ,here%& JM
fin%nci%! f)n" (t f)rth r%n+1
Equity Fund Growth Scheme
UTI F)n" i& $!%ce" fir&t r%n+- JM fin%nci%! F)n" %n" 4DFC F)n"
&h%re &ecn" %n" thir" r%n+& re&$ecti.e!* %n" SBI IVth r%n+1 C#$%rin(
,ith #%r+et ret)rn %!! F)n"& i& .er* !, ret)rn&1
Balanced Fund Dividend
A& $er Sh%r$e #e%&)re#ent- JM fin%nci%! f)n" i& r%n+e" One- SBI
f)n" i& r%n+e" t, %n" UTI f)n" i& r%n+e" Three %n" 4DFC f)n" Frth
r%n+1 B* c#$%rin( ,ith #%r+et ret)rn %!! the f)n"& %re (ettin( .er* !,
ret)rn&1
Balanced Fund Growth
Accr"in( t Sh%r$e #"e! SBI f)n" i& $!%ce" Fir&t r%n+e"- JM
fin%nci%! f)n" %n" UTI f)n" &h%re Secn" %n" Thir" r%n+& %n" 4DFC
Frth r%n+ re&$ecti.e!*1 C#$%rin( ,ith #%r+et ret)rn %!! the f)n"& %re
.er* !,1
B* c#$%rin( %! the &che#e& 1i1e1- SBI- UTI %n" 4DFC- JM
fin%nci%! f)n"& th%t the %!! &che#e i& tr)/!in( #re then the %!! &che#e&1
According to Trenor measurement:
Equity Fund Dividend Scheme
The SBI F)n"- %& $er neither tre* nr #e%&)re#ent i& r%n+e" ne1
Where %& 4DFC F)n" (t &ecn" r%n+1 The UTI F)n" i& (ettin( thir" r%n+
%n" JM fin%nci%! f)n" i& Frth r%n+1
A& c#$%re" t #%r+et in"e2 SBI- UTI %n" 4DFC F)n" i& e%rnin(
.er* !, ret)rn& %n" SBI F)n" i& (ettin( /etter ret)rn& ,here%& JM
fin%nci%! F)n" i& (ettin( ,r&t ret)rn&
Equity Fund Growth scheme
SBI F)n" i& $!%ce" fir&t r%n+- JM fin%nci%! F)n" %n" 4DFC F)n"
&h%re thir" %n" &ecn" r%n+& re&$ecti.e!* %n" UTI IVth r%n+1 C#$%rin(
,ith #%r+et ret)rn SBI- 4DFC f)n" %re $erfr#in( ,e!!1 Where%& UTI
%n" JM fin%nci%! f)n"& h%.e .er* !, ret)rn&1
Balanced Fund Dividend scheme
A& $er Ter*nr #e%&)re#ent- UTI f)n" i& r%n+e" One- JM fin%nci%!
f)n" i& r%n+e" T, %n" SBI f)n" i& r%n+e" Three %n" 4DFC f)n" Frth
r%n+1 B* c#$%rin( ,ith #%r+et ret)rn %!! the f)n"& %re (ettin( ("
ret)rn&- e2ce$t 4DFC-
Balanced Fund Growth scehem
Accr"in( t Ter*nr #"e! SBI f)n" i& $!%ce" Fir&t r%n+e"- JM
fin%nci%! f)n" %n" UTI f)n" &h%re Secn" %n" Thir" r%n+& %n" 4DFC
Frth r%n+ re&$ecti.e!*1 C#$%rin( ,ith #%r+et ret)rn %!! the f)n"& %re
$erfr#in( ,e!!1
B* c#$%rin( %! the &che#e& 1i1e1- SBI- UTI %n" 4DFC- JM
fin%nci%! f)n"& th%t the %!! &che#e i& tr)/!in( #re then the %!! &che#e&1
According to 1ensen measurement the following are the
findings:
Equity Fund Dividend Scheme
The SBI F)n"- %& $er neither tre* nr #e%&)re#ent i& r%n+e" One1
Where %& 4DFC F)n" (ettin( &ecn" r%n+1 The JM fin%nci%! F)n" i&
(ettin( thir" r%n+ %n" UTI f)n" i& Frth r%n+1
A& c#$%re" t #%r+et in"e2 SBI-UTI %n" 4DFC F)n" %n" JM
fin%nci%! %!! the f)n"& %re (ettin( !, ret)rn&1
Equity Fund Growth Scheme
UTI F)n" i& $!%ce" fir&t r%n+- JM fin%nci%! F)n" %n" 4DFC F)n"
&h%re thir" %n" &ecn" r%n+& re&$ecti.e!* %n" SBI IVth r%n+1 C#$%rin(
,ith #%r+et ret)rn UTI f)n" %re $erfr#in( ,e!!1 Where%& SBI- 4DFC
%n" JM fin%nci%! f)n" %re .er* !, ret)rn&
Balanced Fund Dividend
A& $er Jen&n #e%&)re#ent- JM fin%nci%! f)n" i& r%n+e" One- SBI
f)n" i& r%n+e" T, %n" 4DFC f)n" i& r%n+e" Three %n" UTI f)n" Frth
r%n+1 B* c#$%rin( ,ith #%r+et ret)rn %!! the f)n"& %re (ettin( .er* !,
ret)
Balanced Fund Growth
Accr"in( t Ter*nr #"e! SBI f)n" i& $!%ce" Fir&t r%n+e"- JM
fin%nci%! f)n" %n" UTI f)n" &h%re Secn" %n" Thir" r%n+& %n" 4DFC
Frth r%n+ re&$ecti.e!*1 C#$%rin( ,ith #%r+et ret)rn %!! the f)n"& %re
$erfr#in( ,e!!1
B* c#$%rin( %! the &che#e& 1i1e1- SBI- UTI %n" 4DFC- JM
fin%nci%! f)n"& th%t the %!! &che#e i& tr)/!in( #re then the %!! &che#e&1
SUGGESTIONS
The &ectin trie& t $re&ent cert%in &)((e&tin&1 The &)((e&tin&
e#er(e fr# the /&er.%tin& #%"e n the $erfr#%nce $&itin& f
.%ri)& f)n"& t%+en fr the &t)"*1
It ,%& /&er.e" th%t %& $er Sh%r$e $erfr#%nce #e%&)re#ent fr the
e8)it* f)n" "i.i"en" &che#e- the e8)it* f)n" (r,th !%((in( /ehin"1
Therefre it i& %".i&e" t reDr(%ni9e the /%!%nce" f)n" "i.i"en" %n"
/%!%nce" f)n" (r,th in.e&t#ent & %& t #%+e #re ret)rn&1
In c%&e f e8)it* f)n" (r,th- /%!%nce" f)n" "i.i"en" #%* cn&i"er
t reDr(%ni9e itB& in.e&t#ent %& it i& !%((in( f%r /ehin" ,hen c#$%re" t
thi& $rtf!i t t%+e the %".%nt%(e f #re ret)rn& fr# the
$h%r#%ce)tic%! &ectr1
In the e8)it* f)n" "i.i"en" %n%!*&i&- the /%!%nce" f)n" $!%ce" in
&ecn" $&itin- therefre thi& f)n" #%* cn&i"er recn&tr)ctin f thi&
in.e&t#ent t%+e the %".%nt%(e f #re ret)rn& fr# the $h%r#%ce)tic%!
&ectr1
A!! the e8)it* f)n" (r,th in c#$%ri&n t the ther f)n"& i& nt
%".i&%/!e fr in.e&t#ent %& $er $re&ent %n%!*&i&1
The in.e&tr& %re %".i&e" t in.e&t their f)n"& in %n* e8)it* "i.i"en"
#)t)%! f)n"1
BIBLIOGRAPHY
Books:-
;1 N%t%r%(%n %n" 6r"%n “Fin%nci%! Ser.ice& %n" M%r+et&”
<1 Pnith%.%tih P%n"i%n “Sec)rit* An%!*&i& %n" Prtf!i
DM%n%(e#ent”
?1 Preeti Sin(h “In.e&t#entM%n%(e#et“Sec)rit*An%!*&i& %n"
DPrtf!i M%n%(e#ent
1
H1 S1 Ae.in “Sec)rit* An%!*&i& %n" Prtf!i M%n%(e#ent”
PrenticeD 4%!! f DIn"i% PVT LTD (E"itin <==?'
>1 Dn%!" E1 Fi&her- Rn%!" J1 Jr"%n “Sec)rit* An%!*&i& %n"
Prtf!iDM%n%(e#ent”
News papers: -
The Ecn#ic Ti#e&
B)&ine&& !ine
Magazines:- B)&ine&& Wr!"
In"i% T"%*
Web sites:
,,,1#)t)%!f)n"in"i%1c#
,,,1in"i%#%rt1c#
,,,1in"i%inf!ine1c#
,,,1/&ein"i%1c#
,,,1&/hin"i%1c#
doc_679925535.doc
ON
“PERFORMANCE EVALUATION OF PUBLIC AND
PRIVATE SECTOR MUTUAL FUNDS”
(With reference t Se!ecte" C#$%nie&'
SUBMITTED IN THE PARTIAL FULFILMENT OF THE
REQUIREMENT OF
“MASTER OF BUSINESS ADMINISTRATION” IN
ACKNOWLEDGEMENT
I (r%tef)!!* %c+n,!e"(e #* (r%tit)"e t XXXX- Prfe&&r in
c##erce- fr $r.i"in( #e .%!)%/!e ()i"%nce %n" nece&&%r* &)$$rt
thr)(h)t the $r0ect1 I %!& e2$re&& #* i##en&e (r%tit)"e %n" th%n+& fr
$r.i"in( #e % (" "irectin t,%r"& thi& $r0ect1 At the &%#e ti#e I %#
th%n+f)! t #* !ect)rer&- %n" %!& I %# th%n+f)! t #* frien"& ,h %re
he!$e" #e t #%+e thi& &t)"* &)cce&&f)!!*1
(XXXXX)
DECLARATION
I here /* "ec!%re th%t the $r0ect re$rt n “PERFORMANCE
EVALUATION OF PUBLIC AND PRIVATE SECTOR MUTUAL
FUNDS (with reference to selecte co!"#nies$% h%& /een
&)/#itte" )n"er the ()i"%nce f XXXX, Prfe&&r- De$%rt#ent f
C##erce- 33331
I f)rther "ec!%re th%t it i& %n ri(in%! ,r+ "ne /* #e %& % $%rt f
#* %c%"e#ic c)r&e %n" h%& nt /een &)/#itte" e!&e,here fr %n* "e(ree
r "i$!#%1 The /&er.%tin& %n" cnc!)&in& ,ritten in thi& re$rt %re
/%&e" n the "%t% c!!ecte" /* #e1
XXXX
CONTENTS
INTRODUCTION
• INTRODUCTION
• IMPORTANCE OF T4E STUD5
• OBJECTIVES
• MET4ODOLO65
• LIMITATIONS OF T4E STUD5
• C4APTERI7ATION
PROFILE OF SELECTED COMPANIES
MUTUAL FUNDS – AN OVERVIEW
PERFORMAENCE EVALUATION OF SELECTED
MUTUAL FUNDS
CONCLUSIONS AND SUGGESTIONS
BIBLIOGRAPHY
ANNEXURE
LIST OF TABLES
? T%/!e f A((re(%te De$&it& f &che")!e" crn /%n+& in In"i%
? T%/!e f #)t)%! f)n" 6r,th& %n" Di.i"en"1
? T%/!e& f ret)rn& f "ifferent &che#e&
? T%/!e f In"e2 Ret)rn
? T%/!e& f St%n"%r" De.i%tin
? Bet% C%!c)!%tin T%/!e&
? Sh%r$ Perfr#%nce Me%&)re#ent R%ti T%/!e&
? Tre*nr Perfr#%nce Me%&)re#ent R%ti T%/!e&
? Jen&en Perfr#%nce Me%&)re#ent R%ti T%/!e&
INTRODUCTION
INTRODUCTION
The fin%nci%! &*&te# c#$ri&e& f fin%nci%! in&tit)tin&- in&tr)#ent&
%n" #%r+et& th%t $r.i"e %n effecti.e $%*#ent %n" cre"it &*&te# th%t
f%ci!it* the ch%nne!in( f f)n"& fr# &%.er& t the in.e&tr& f the
ecn#*1 In"i%n M)t)%! F)n"& h%.e e#er(e" %& &trn( fin%nci%! &t%/i!it*
t the fin%nci%! &*&te#1 M)t)%! F)n"& h%.e $ene" ne, .i&t%& t in.e&tr&
%n" i#$rte" #)ch nee"e" !i8)i"it* t the &*&te#1
M)t)%! F)n"& %re "*n%#ic fin%nci%! in&tit)tin&- ,hich $!%* %
cr)ci%! r!e in %n ecn#* /* #/i!i9in( &%.in(& %n" in.e&tin( in the
c%$it%! #%r+et& &%.in(& %n" the in.e&tin( in the c%$it%! #%r+et&1 Therefre-
the %cti.itie& f M)t)%! F)n"& h%.e /th &hrt %n" !n( ter# i#$%ct n the
&%.in(& %n" c%$it%! #%r+et %n" n%tin%! ecn#*1
M)t)%! F)n"& $r.i"e h)&eh!"& %n $tin fr $rtf!i
"i.er&ific%tin %n" re!%ti.e ri&+ %.er&in thr)(h c!!ectin f f)n"& fr#
the h)&e h!"& %n" #%+e& in.e&t#ent& in the &tc+ %n" the "e/t #%r+et1
NEED FOR THE STUDY
M)t)%! F)n"& %re fin%nci%! inter#e"i%rie& cncern ,ith the
#/i!i9in( &%.in(& f th&e h%.e &)r$!)& inc#e %n" ch%nne!&
!%.%tin f th&e %.en)e& ,here there i& "e#%n" f F)n"&1
The $)r$&e f thi& &t)"* f $erfr#%nce e.%!)%tin f #)t)%!
f)n"& i& t &ee th%t the&e #)t)%! f)n"& e#$!* the re&)rce& in &)ch %
#%nner %& t %ffr" fr the in.e&tr& c#/ine /enefit& f !, ri&+- &te%"*
ret)rn&- hi(h !i8)i"it* %n" c%$it% %$$reci%tin thr)(h "i.er&ific%tin %n"
e2$ert #%n%(e#ent1
Therefre- %cti.itie& f #)t)%! f)n"& h%.e &hrt %n" !n( ter#
i#$%ct n the &%.in(& %n" c%$it%! #%r+et& %n" n%tin%! ecn#*: #)t)%!
fin"& th)& %&&i&t the $rce&& f fin%nci%! "ee$enin( %n" inter#e"i%tin1
OB1ECTIVES OF STUDY
The &$ecific /0ecti.e& f the &t)"* %re %& f!!,&
? T %n%!*9e the tren"& in ret)rn& f &e!ecte" #)t)%! f)n"&1
? T e.%!)%te the $erfr#%nce f &e!ecte" P)/!ic %n" Pri.%te &ectr
M)t)%! F)n"&1
METHODOLOGY
Source of Data:
The "%t% c%n /e c!!ecte" fr# Secn"%r* S)rce&1 The "%t% ,%&
c!!ecte" fr# P%&t Recr"&- B+&- J)rn%!&- M%(%9ine&- Internet %n" %!!
ther t*$e& f $)/!i&he" "%t%1
STATISTICAL TECHNIQUES
The &i#$!e &t%ti&tic%! techni8)e& !i+e $ercent%(e& %n" (r,th r%te&
%re c%!c)!%te"1 Fr the $)r$&e f e.%!)%tin the $$)!%r #eth"& &)ch %&
Sh%r$e- Tre*nr %n" Jen&en %re %$$!ie"1
PERIOD OF THE STUDY
Fr the &t)"* "%t% c!!ecte" fr fi.e *e%r&- fr# the $eri" ;
&t
J%n)%r* <==> t ?;
&t
Dece#/er <==@1
LIMITATION OF THE STUDY
The &t)"* h%& cert%in !i#it%tin&
The cnce$t f #)t)%! f)n"& i& !i+e ce%n1 S % "et%i!e" &t)"* f
e%ch %n" e.er* c#$nent f thi& cnce$t i& nt $&&i/!e /ec%)&e f the
!i#ite" ti#e cn&tr%int1
The #)t)%! f)n"& %n" &ec)ritie& in.e&t#ent %re &)/0ecte" t #%r+et
ri&+& %n" there c%n /e n %&&)r%nce& r ()%r%ntee th%t the &che#e&
/0ecti.e& ,i!! /e %chie.e"1
The %n%!*&i& %& h%" /een "ne .er* fe, &che#e& f &e!ecte" fr
$)/!ic %n" $ri.%te &ectr #)t)%! f)n"&1
CHAPTERISATION
Aee$in( in .ie, the /0ecti.e& f the &t)"* i& r(%ni9e" int fi.e ch%$ter&1
The fir&t ch%$ter i& intr")ctr* in n%t)re it "e%!& ,ith the
intr")ctin f the &t)"*- nee" fr &t)"*- O/0ecti.e& f the &t)"*- Re&e%rch
#eth"!(*- Peri" the &t)"* %n" Li#it%tin& f the &t)"*1
The &ecn" ch%$ter "e%!& ,ith In")&tri%! Prfi!e in In"i% it t)che&
cnce$t f M)t)%! F)n"&- M)t)%! F)n"& in In"i%- A&&et M%n%(e#ent
C#$%n*B& C#$%n* in")&tri%! %!! $rfi!e1
The thir" ch%$ter i& "e"ic%te" t "e%! ,ith %n .er.ie, f M)t)%!
F)n"&1 It c.er& the %&$ect& &)ch %& intr")ctin- 4i&tric%! M)t)%! F)n"&-
t*$e f M)t)%! F)n"&- in.e&tr $rtectin- Ri&+ %n" Re,%r"- V!%ti!it*-
In.e&t#ent O/0ecti.e&- A".%nt%(e& f in.e&tin( in M)t)%! F)n"& %n" T%2
Benefit&-
Ch%$ter f)r "e%!& ,ith intr")ctin t $r#inence e.!)tin f
M)t)%! F)n"&- $erfr#%nce #e%&)rin( f M)t)%! f)n"&- #e%&)rin( #)t)%!
f)n"& ret)rn- ri&+ %"0)&t#ent ret)rn&- Perfr#%nce #e%&)re#ent f
"ifferent t*$e& f #)t)%! f)n"& )&in( #e%&)re#ent techni8)e& &)ch %&
Sh%r$e- Tre* nr %n" Jen&en in"e2 r%ti& %n" the %n%!*&i& f $erfr#%nce1
Thi& ch%$ter i& %/)t the cnc!)&in f the &t)"* %n" &)((e&tin& fr
the &t)"*1
MUTUAL FUNDS
AN OVERVIEW
MUTUAL FUNDS – AN OVERVIEW
INTRODUCTION
T &t%te in &i#$!e ,r"&- % #)t)%! f)n" c!!ect& the &%.in(& fr#
&#%!! in.e&tr&- in.e&t the# in 6.ern#ent %n" ther cr$r%te &ec)ritie&
%n" e%rn inc#e thr)(h intere&t %n" "i.i"en"&- /e&i"e& c%$it%! (%in1 It
,r+& n the $rinci$!e f” &#%!! "r$ f ,%ter #%+e& % /i( ce%nB1
DEFINITION
The &ec)ritie& %n" E2ch%n(e B%r" f In"i% (M)t)%! F)n"&'
Re()!%tin- ;CC? "efine& % #)t)%! f)n" “% f)n" e&t%/!i&he" in the fr# f %
tr)&t /* % &$n&r- t r%i&e #nie& /* the tr)&tee& thr)(h the &%!e f )nit&
t the- $)/!ic- )n"er ne r #re &che#e&- fr in.e&tin( in &ec)ritie& in
%ccr"%nce ,ith the&e re()!%tin&”
Accr"in( t We&tn J1 Fre" %n" Bri(h%#- E)(ene- F- Unit tr)&t&
%re “cr$r%tin& ,hich %cce$t "!!%r& fr# &%.er& %n" then )&e the&e
"!!%r& t /)* &tc+- !n( ter# /n"&- &hrt ter# "e/t in&tr)#ent& i&&)e"
/* /)&ine&& r (.ern#ent )nit&: the&e cr$r%tin& $! f)n"& %n" th)&
re")ce ri&+ /* "i.er&ific%tin”1
HISTORY OF MUTUAL FUNDS
An $enDen" f)n" i& ne th%t i& %.%i!%/!e fr &)/&cri$tin %!! thr)(h
the *e%r1 The&e " nt h%.e % fi2e" #%t)rit*1 In.e&tr& c%n cn.enient!*
/)* %n" &e!! )nit& %t Net A&&et V%!)e (ENAVE' re!%te" $rice&1 The +e*
fe%t)re f $enDen" &che#e& i& !i8)i"it*
The M)t)%! f)n" in")&tr* in In"i% &t%rte" in CF? ,ith the fr#%tin
f UTI ()nite" tr)&t f In"i%'- %t the initi%ti.e f (.ern#ent f In"i%1 The
hi&tr* f M)t)%! F)n"& in In"i% c%n /e /r%"!* "i.i"e" int F)r Ph%&e&
First Phase- 1964-87
Unit Tr)&t f In"i% ,%& e&t%/!i&he" /* %n %ct f P%r!i%#ent1 It ,%& &et
)$ /* the Re&er.e B%n+ f In"i% %n" f)nctine" )n"er the Re()!%tr* %n"
A"#ini&tr%ti.e cntr! f the Re&er.e B%n+ f In"i%1 In ;C@G UTI ,%& "eD
!in+e" fr# the RBI %n" IDBI t+ .er the re()!%tr* %n" %"#ini&tr%ti.e
cntr! in $!%ce f RBI1 The fir&t &che#e !%)nche" /* UTI ,%& Unit
Sche#e ;CFH1 At the en" f ;CGG UTI h%" R&1 F@== crre& f %&&et& )n"er
#%n%(e#ent1
Second phase-1987-1993(entry of public sector funds)
;CG@ #%r+ete" the entr* f nnDUTI- $)/!ic &ectr #)t)%! f)n"& &et
)$ /* $)/!ic &ectr /%n+& %n" !ife in&)r%nce Cr$r%tin f In"i% (LIC' %n"
(ener%! In&)r%nce Cr$r%tin f In"i% (6IC'1 SBI M)t)%! f)n" ,%& the
fir&t nnDUTI M)t)%! f)n" e&t%/!i&he" in J)ne ;CG@ f!!,e" /* c%n /%n+
M)t)%! f)n" (Dec ;CG@'- P)n0%/ n%tin%! /%n+ #)t)%! f)n" (A)()&t GC'1
In"i% /%n+ #)t)%! f)n" (N. GC'1 B%n+ f In"i% (J)ne C='- /%n+ f B%r"%
#)t)%! f)n" (Oct C<'1 LIC e&t%/!i&he" it& #)t)%! f)n" in N. ;CGC ,hi!e
6IC h%" &et )$ it& #)t)%! f)n" in Dece#/er ;CC= %t the en" f ;CC?- the
#)t)%! f)n" in")&tr* h%" %&&et )n"er #%n%(e#ent f R&1H@- ==H cre&1
Third phase-1993-2003 (entry of private sector funds)
With the entr* f $ri.%te &ectr f)n"& in ;CC?- %n er% &t%rte" in the
In"i%n #)t)%! f)n" in")&tr*- (i.in( the In"i%n in.e&tr& % ,i"er chice f
f)n" f%#i!ie&- A!&1 ;CC? ,%& the *e%r in ,hich the fir&t #)t)%! f)n"
re()!%tin& c%#e int /ein(- )n"er ,hich %!! #)t)%! f)n"&- e2ce$t UTI
,ere t /e re(i&tere" %n" (.erne"- the Ath%ri $ineer (n, #er(e" ,ith
Fr%n+!in Te#$!etn' ,%& the fir&t $ri.%te &ectr #)t)%! f)n" re(i&tere" in
J)!* ;CC?1 The ;CC? SEBI (#)t)%! f)n"& ' re(i&tr%tin& ,ere &)/&tit)te" /*
% #re c#$rehen&i.e %n" re.i&e" #)t)%! f)n"& re()!%tin& in ;CCF the
n)#/er f #)t)%! f)n"& h)&e& ,ent n incre%&in(- ,ith #%n* frei(n
#)t)%! f)n"& &ettin( )$ f)n"& in In"i% %n" %!& the in")&tr* h%& ,itne&&e"
&e.er%! #er(er& %n" %c8)i&itin1 A& %t the f J%n <==?- there ,%re ??
#)t)%! f)n"& ,ith tt%! %&&ent& f R&1 ;-<;-G=> crre&1 The UTI ,ith R&1
HH->H; crre& f %&&et& )n"er #%n%(e#ent ,%& ,%* %he%" f ther #)t)%!
f)n"&1
Fourthphase-2003-2005:
Thi& $h%&e h%" /itter e2$erience fr UTI1 It ,%& /if)rc%te" int t,
&e$%r%te entitie&1 One i& the S$ecifie" Un"ert%+in( f the Unit Tr)&t f
In"i% ,ith AUM f R&1<C-G?> crre& (%& n J%n)%r* <==?'1 The S$ecifie"
Un"ert%+in( f Unit Tr)&t f In"i%- f)nctinin( )n"er %n %"#ini&tr%tr %n"
)n"er the r)!e& fr%#e" /* 6.ern#ent f In"i% %n" "e& nt c#e )n"er
the $)r.ie, f the M)t)%! F)n" Re()!%tin&1
The &ecn" i& the UTI M)t)%! F)n" Lt"- &$n&re" /* SBI- PNB-
BOB %n" LIC1 It i& re(i&tere" ,ith SEBI %n" f)nctin& )n"er the M)t)%!
F)n" Re()!%tin&1 With the /if)rc%tin f the er&t,hi!e UTI ,hich h%" in
M%rch <=== #re th%n R&1@F-=== crre& f AUM %n" ,ith the &ettin( )$ f
% UTI M)t)%! F)n"- cnfr#in( t the SEBI M)t)%! F)n" Re()!%tin&-
%n" ,ith recent #er(er& t%+in( $!%ce %#n( "ifferent $ri.%te &ectr f)n"&-
the #)t)%! f)n" in")&tr* h%& entere"
It& c)rrent $h%&e f cn&!i"%tin %n" (r,th- %& %t the en" f
Se$te#/er <==H- there ,ere <C f)n"&- ,hich #%n%(e %&&et& f R&1;>?;=G
crre& )n"er H<; &che#e&1
TYPES OF MUTUAL FUNDS
Closed-ended Funds
A c!&e"Den" f)n" h%& % &ti$)!%te" #%t)rit* $eri" ,hich (ener%!!*
r%n(in( fr# ? t ;> *e%r&1 The f)n" i& $en fr &)/&cri$tin n!* ")rin( %
&$ecifie" $eri"1 In.e&tr& c%n in.e&t in the &che#e %t the ti#e f the initi%!
$)/!ic i&&)e %n" there%fter the* c%n /)* r &e!! the )nit& f the &che#e n
the &tc+ e2ch%n(e& ,here the* %re !i&te"1 In r"er t $r.i"e %n e2it r)te
t the in.e&tr&- &#e c!&eDen"e" f)n"& (i.e %n $tin f &e!!in( /%c+ the
)nit& t the M)t)%! F)n" thr)(h $eri"ic re$)rch%&e %t NAV re!%te"
$rice&1 SEBI Re()!%tin& &ti$)!%te th%t %t !e%&t ne f the t, e2it r)te& i&
$r.i"e" t the in.e&tr1
Interval Funds
Inter.%! f)n"& c#/ine the fe%t)re& f $enDen"e" %n" c!&eDen"e"
&che#e&1 The* %re $en fr &%!e r re"e#$tin ")rin( $reD"eter#ine"
inter.%!& %t NAV re!%te" $rice&1
INVESTMENT OB1ECTIVE:
Equity Funds Dividend
The %i# f E8)it* F)n"& Di.i"en" i& t $r.i"e c%$it%! %$$reci%tin
.er the #e"i)# t !n(D ter#1 S)ch &che#e& nr#%!!* in.e&t % #%0rit*
f their cr$)& in e8)itie&1 It h%& /een $r.en th%t ret)rn& fr# &tc+&- h%.e
)t$erfr#e" #&t ther +in" f in.e&t#ent& he!" .er the !n( ter#1
Equity Funds Growth
The %i# f E8)it* F)n"& (r,th i& t $r.i"e c%$it%! %$$reci%tin
.er the #e"i)# t !n(D ter#1 S)ch &che#e& nr#%!!* in.e&t % #%0rit*
f their cr$)& in e8)itie&1 It h%& /een $r.en th%t ret)rn& fr# &tc+&- h%.e
)t$erfr#e" #&t ther +in" f in.e&t#ent& he!" .er the !n( ter#1
Balanced Funds Dividend
The %i# f /%!%nce" f)n"& "i.i"en" i& t $r.i"e /th "i.i"en" %n"
re()!%r inc#e1 S)ch &che#e& $eri"ic%!!* "i&tri/)te % $%rt f their e%rnin(
%n" in.e&t /th in e8)itie& %n" fi2e" inc#e &ec)ritie& in the $r$rtin
in"ic%te" in their ffer "c)#ent&1
Balanced Funds Growth
The %i# f /%!%nce" f)n"& i& t $r.i"e /th (r,th %n" re()!%r
inc#e1 S)ch &che#e& $eri"ic%!!* "i&tri/)te % $%rt f their e%rnin( %n"
in.e&t /th in e8)itie& %n" fi2e" inc#e &ec)ritie& in the $r$rtin
in"ic%te" in their ffer "c)#ent&1
OTHER SCHEMES:
Tax Saving Schemes
The&e &che#e& ffer t%2 re/%te& t the in.e&tr& )n"er &$ecific
$r.i&in& f the In"i%n Inc#e T%2 !%,& %& the 6.ern#ent ffer& t%2
incenti.e& fr in.e&t#ent in &$ecifie" %.en)e&1 In.e&t#ent& #%"e in E8)it*
Lin+e" S%.in(& Sche#e& (ELSS' %n" Pen&in Sche#e& %re %!!,e" %&
"e")ctin )I& GG f the Inc#e T%2 Act- ;CF;1
SPECIAL SCHEMES:
Industry Specific Schemes
In")&tr* S$ecific Sche#e& in.e&t n!* in the in")&trie& &$ecifie" in
the ffer "c)#ent1 The in.e&t#ent f the&e f)n"& i& !i#ite" t &$ecific
in")&trie& !i+e InfTech- FMC6- %n" Ph%r#%ce)tic%!& etc1
Index Schemes
In"e2 F)n"& %tte#$t t re$!ic%te the $erfr#%nce f % $%rtic)!%r
in"e2 &)ch %& the BSE Sen&e2 r the NSE >=1
Spectral Scheme
S$ectr%! F)n"& %re th&e- ,hich in.e&t e2c!)&i.e!* in % &$ecifie"
in")&tr* r % (r)$ f in")&trie& r .%ri)& &e(#ent& &)ch %& JAJ 6r)$
&h%re& r initi%! $)/!ic fferin(&1
ADVANTAGES OF INVESTING IN MUTUAL FUNDS
? Prfe&&in%! #%n%(e#ent1
? Di.er&ific%tin1
? Cn.enient %"#ini&tr%tin1
? Ret)rn $tenti%!1
? L, c%&t1
? Li8)i"it*1
? F!e2i/i!it*1
? Chice f &che#e&1
? T%2 /enefit&1
? We!! re()!%te"1
TAX - BENEFITS
? N t%2 n "i.i"en"& in the h%n"& f the in.e&tr (n!* % ;<1F;=I=
"i.i"en" "i&tri/)tin t%2 $%i" /* the f)n" /efre "i&tri/)tin f
"i.i"en"&'
? N "i.i"en" "i&tri/)tin t%2 fr e8)it* #)t)%! f)n"& (c#$!ete!*
t%2 free "i.i"en"&'
? T%2 !i%/i!it* n!* ,hen in.e&t#ent i& re"ee#e"I ,ith"r%,n (nt
e.er* *e%r'
? Ln( ter# c%$it%!E (%in& t%2 /enefit&1
? Benefit f in"e2%tin fr in.e&t#ent& he!" .er % *e%r1
PROFILES OF
SELECTED COMPANIES
PROFILES OF SELECTED COMPANIES
CONCEPT
Thi& ch%$ter i& "e.te" fr $r.i"in( cnce$t)%! fr%#e,r+ f
#)t)%! f)n"& In"i%1 Thi& ch%$ter %!& $re&ent& the t*$e& f .%ri)&
&che#e&- %".%nt%(e& %n" "r%,/%c+& %n" %!& e2$!%in& the re!e.%nt
ter#in!(*1
A M)t)%! f)n" i& % tr)&t th%t $!& the &%.in(& f % n)#/er f
in.e&tr& ,h &h%re % c##n fin%nci%! (%!1 The #ne* th)& c!!ecte" i&
then in.e&te" in c%$it%! #%r+et in&tr)#ent& &)ch %& &h%re&- "e/ent)re& %n"
ther &ec)ritie&1 The inc#e e%rne" thr)(h the&e in.e&t#ent& %n" the
c%$it%! %$$reci%tin& re%!i9e" %re &h%re" /* it& )nit h!"er& in $r$rtin t
the n)#/er f )nit& ,ne" /* the#1 Th)& % #)t)%! f)n" i& the #&t
&)it%/!e in.e&t#ent f the c##n #%n %& it ffer& %n $$rt)nit* t in.e&t
in % "i.er&ifie"- $rfe&&in%!!* #%n%(e" /%&+et f &ec)ritie& %t % re!%ti.e!*
!, c&t1 The f!, ch%rt /e!, "e&cri/e& /r%"!* the ,r+in( f #)t)%!
f)n"&1
MUTUAL FUNDS IN INDIA
ABN AMRO M)t)%! F)n" KBir!% S)n Life M)t)%! F)n"KB%n+ f
B%r"% M)t)%! F)n" (BOB M)t)%! F)n"'K4DFC M)t)%! F)n"K4SBC
M)t)%! F)n"KIN6 V*&*% M)t)%! F)n" KPr)"enti%! ICICI M)t)%!
F)n"KS%h%r% M)t)%! F)n" KSt%te B%n+ f In"i% M)t)%! F)n" (SBI'KT%t%
M)t)%! F)n"1
The cnce$t f #)t)%! f)n"& in In"i% "%te& /%c+ t the *e%r ;CF?1
The er% /et,een ;CF? %n" ;CG@ #%r+e" the e2i&tence f n!* ne #)t)%!
f)n" C#$%n* in In"i% ,ith R&1 F@/n %&&et& )n"er #%n%(e#ent (AUM'1/*
the en" f it& #n$!* er%1 The Unit Tr)&t f In"i% (UTI'- /* the en" f
the G=& "ec%"e- fe, ther #)t)%! f)n" c#$%nie& in In"i% t+ their
$&itin in #)t)%! f)n" #%r+et1
The ne, entrie& f #)t)%! f)n" c#$%nie& in In"i% ,ere SBI M)t)%!
F)n"- C%n/%n+ M)t)%! F)n"- P)n0%/ N%tin%! B%n+ M)t)%! F)n"- In"i%n
B%n+ M)t)%! F)n"- B%n+ f In"i% M)t)%! F)n"1
The &)ccee"in( "ec%"e &h,e" % ne, hri9n in In"i% #)t)%! f)n"
in")&tr*1 B* the en" f ;CC?- the tt%! AUM f the in")&tr* ,%& R&1H@=1=H
/n1 The $ri.%te &ectr f)n"& &t%rte" $enetr%tin( the f)n" f%#i!ie&1 In the
&%#e *e%r the fir&t M)t)%! F)n" Re()!%tin& c%#e int e2i&tence ,ith reD
re(i&terin( %!! #)t)%! f)n"& e2ce$t UTI1 The re()!%tin ,%& f)rther (i.en %
re.i&e" &h%$e in ;CCF1
Ath%ri Pineer ,%& the fir&t $ri.%te &ectr #)t)%! f)n" c#$%n* in
In"i% ,hich h%& n, #er(e" ,ith Fr%n+!in Te#$!etn1 J)&t %fter ten *e%r&
,ith $ri.%te &ectr $!%*er& $enetr%tin- the tt%! %&&et& r&e )$ t R&1
;<;G1=> /n 1 T"%* there %re ?? #)t)%! f)n" c#$%nie& In"i%1
ASSET MANAGEMENT COMPANIES
A&&et #%n%(e#ent c#$%nie& %re the c#$%nie& in.!.e" in the
#)t)%! f)n" /)&ine&&1 The&e c#$%nie& #%n%(e %!! the tr%n&%ctin f
#)t)%! f)n"& fr# the /e(innin( t the en"1
The f!!,in( %re the !i&t f AMCB& $er%tin( c)rrent!* in In"i%1
The* %re
A1 UTI A&&et #%n%(e#ent c#$%n* (P' !t"
B1 B%n+ &$n&re"
BB %&&et #%n%(e#ent c#$%n* !t"
C%n /%n+ in.e&t#ent #%n%(e#ent &er.ice& !t"
PNB %&&et #%n%(e#ent c#$%n* !t"
SBI f)n"& #%n%(e#ent c#$%n* !t"
C1 In&tit)tin&
6IC %&&et #%n%(e#ent c#$%n* !t"
IDBI $rinci$%! %&&et #%n%(e#ent c !t"
ILLFS %&&et #%n%(e#ent c !t"
Jee.%n /i#% &%h%*(e %&&et #%n%(e#ent c !t"
D1 Pri.%te &ectr
;1 In"i%n
Bench#%r+ %&&et #%n%(e#ent c !t"
Ch!%#%n"%!%# %&&et #%n%(e#ent c !t"
E&crt %&&et #%n%(e#ent c !t"
JM c%$it%! #%n%(e#ent !t"
At%+ M%hin"r% %&&et #%n%(e#ent !t"
S)n"%r%# %&&et #%n%(e#ent c !t"
Re!i%nce c%$it%! %&&et #%n%(e#ent !t"
<1 Jint .ent)re& D Pre "#in%nt!* In"i%n
B)r!%$ &)n !ife in&)r%nce #%n%(e#ent c !t"
Cre"it c%$it%! %&&et #%n%(e#ent c !t"
DSP Merri!! L*nch f)n" #%n%(er $.t !t"
Fir&t In"i%n #%n%(e#ent c !t"
T%t% TD ,%ter h)&e %&&et #%n%(e#ent $.t !t"
4DFC %&&et #%n%(e#ent $.t !t"
?1 Jint .ent)re& D Pre "#in%nt!* Frei(n
A!!i%nce c%$it%! %&&et #%n%(e#ent (In"i%' $.t !t"
De)t &he %&&et #%n%(e#ent (In"i%' $.t !t"
D)n"ee in.e&t#ent #%n%(e#ent re&e%rch $.t !t"
4SBC %&&et #%n%(e#ent (In"i%' $.t !t"
IN6 in.e&t#ent #%n%(e#ent (In"i%' $.t !t"
Mr(%n St%n!e* in.e&t#ent #%n%(e#ent $.t !t"
Pr)"enti%! ICICI #%n%(e#ent c !t"
St%n"%r" Ch%rtere" %&&et #%n%(e#ent c $.t !t"
S)n F L C %&&et #%n%(e#ent (In"i%' $.t !t"
Te#$!etn %&&et M%n%(e#ent (In"i%' $.t !t"
7)rich A&&et #%n%(e#ent c#$%n* (In"i%' $.t !t"
SBI (State Bank of India) Mutual Fund:
SBI #)t)%! f)n"& i& the fir&t B%n+ &$n&re" #)t)%! f)n" t !)nch
ff&hre f)n" -the In"i% #%
# f)n" ,ith % cr$)& f R& <<>cr1 A$$r2i#%te!*1 T"%* it i& the !%r(e&t B%n+ &$n&re" #)t)%! f)n"& in
In"i% The* h%.e %!re%"* !%)nche" ?> &che#e& )t f ,hich ;> h%.e
%!re%"* *ie!"e" h%n"&#e ret)rn& t in.e&tr&1 SBI #)t)%! f)n" h%&
#re th%n RS >>== cre& %& AUM1 N, it h%& %n in.e&tr /%&e .er
G!%+h& &$re%" .er ;G &che#e&1
UTI (Unit Trust of India)
UTI A&&et #%n%(e#ent c#$%n* $ri.%te !i#ite"- e&t%/!i&he" in
J%n ;H-<==?- #%n%(e& the UTI #)t)%! f)n" ,ith the &)$$rt f UTI
tr)&tee 1c#$%n* $ri.%te !i#ite" 1UTI %&&et #%n%(e#ent c#$%n*
$re&ent!* #%n%(e& cr$)& f .er r& <====crr&1 The &$n&r f UTI
#)t)%! f)n"& %re B%n+ f B%r" (BOB' P)n0%/ n%tin%! B%n+ (PNB'-
St%te B%n+ f In"i% (SBI' %n" !ife in&)r%nce Cr$r%tin f In"i%
(LOIC'1 The &che#e& f UTI #)@t)%! f)n" %re !i8)i" f)n"&- %&&et
#%n%(e#ent f)n"&- in"e2 f)n"&- e8)it* f)n"& %n" /%!%nce F)n"1
HDFC (Housing Development Finance Corporation)
HDFC #)t)%! f)n"& ,%& &et)$ n J)ne ?=-<===,ith t, &$n&r&
n%#e!* 4DFC !i#ite" %n" &t%n"%r" Life in.e&t#ent& Li#ite"1
HDFC Mutual Fund
M)t)%! F)n" h%& /een ne f the /e&t $erfr#in( #)t)%! f)n"& in the
!%&t fe, *e%r&1 4DFC A&&et M%n%(e#ent C#$%n* Li#ite" (AMC'
f)nctin& %& %n A&&et M%n%(e#ent C#$%n* fr the 4DFC M)t)%! F)n"1
AMC i& % 0int .ent)re /et,een h)&in( fin%nce (i%nt 4DFC %n"
Briti&h in.e&t#ent fir# St%n"%r" Life In.e&t#ent& Li#ite"1 It cn")ct& the
$er%tin& f the M)t)%! F)n" %n" #%n%(e& %&&et& f the &che#e&-
inc!)"in( the &che#e& !%)nche" fr# ti#e t ti#e1 A& f A)( <==F- the
f)n" h%& %&&et& f R&1<>- GC< cre& )n"er #%n%(e#ent1
IN <==?- f!!,in( % "eci&in /* the 7)rich In&)r%nce C#$%n*
(7IC'- the S$n&r f 7)rich In"i% M)t)%! F)n"- t "i.e&t it& %&&et
#%n%(e#ent /)&ine&& in In"i%- AMC h%" entere" int %n %(ree#ent ,ith
7IC t %c8)ire the %&&et #%n%(e#ent /)&ine&&1 Cn&e8)ent!*- %!! the
&che#e& f 7)rich M)t)%! F)n" in In"i% h%" /een tr%n&ferre" t 4DFC
M)t)%! F)n" %n" ren%#e" %& 4DFC &che#e&1
4ere i& % !i&t f #)t)%! f)n"& f 4DFCM
Equity Funds:
4DFC 6r,th F)n"
4DFC Ln( Ter# A".%nt%(e F)n"
4DFC In"e2 F)n"
• 4DFC In"e2 F)n" Nift* P!%n
• 4DFC In"e2 F)n" SENSE3 P!%n
• 4DFC In"e2 F)n" SENSE3 P!)& P!%n
4DFC E8)it* F)n"
4DFC C%$it%! B)i!"er F)n"
4DFC T%2 S%.er
4DFC T$ <== F)n"
4DFC Cre L S%te!!ite F)n"
4DFC Pre#ier M)!tiDC%$ F)n"
4DFC Ln( Ter# E8)it* F)n"
Balanced Funds
4DFC Chi!"renJ& 6ift F)n" In.e&t#ent P!%n
4DFC Chi!"renJ& 6ift F)n" S%.in(& P!%n
4DFC B%!%nce" F)n"
4DFC Pr)"ence F)n"
Debt Funds
4DFC Inc#e F)n"
4DFC Li8)i" F)n"
4DFC 6i!t F)n" Shrt Ter# P!%n
4DFC 6i!t F)n" Ln( Ter# P!%n
4DFC Shrt Ter# P!%n
4DFC F!%tin( R%te Inc#e F)n" Shrt Ter# P!%n
4DFC F!%tin( R%te Inc#e F)n" Ln( Ter# P!%n
4DFC Li8)i" F)n" D PREMIUM PLAN
4DFC Li8)i" F)n" D PREMIUM PLUS PLAN
4DFC Shrt Ter# P!%n D PREMIUM PLAN
4DFC Shrt Ter# P!%n D PREMIUM PLUS PLAN
4DFC Inc#e F)n" Pre#i)# P!%n
4DFC Inc#e F)n" Pre#i)# P!)& P!%n
4DFC 4i(h Intere&t F)n"
4DFC 4i(h Intere&t F)n" D Shrt Ter# P!%n
4DFC C%&h M%n%(e#ent F)n" D S%.in(& P!%n
4DFC C%&h M%n%(e#ent F)n" D C%!! P!%n
4DFCMF Mnth!* Inc#e P!%n D Shrt Ter# P!%n
4DFCMF Mnth!* Inc#e P!%n D Ln( Ter# P!%n
4DFC C%&h M%n%(e#ent F)n" D S%.in(& P!)& P!%n
4DFC M)!ti$!e 5ie!" F)n"
4DFC M)!ti$!e 5ie!" F)n" P!%n <==>
4DFC Fi2e" M%t)rit* P!%n
Awards in 2007
B)&ine&& T"%* 'Best Bank' Award
D)n L Br%"&treet N
A#eric%n E2$re&&
Cr$r%te Be&t
B%n+ A,%r" <==@
'Corporate Best Bank' Award
The B#/%* Stc+
E2ch%n(e %n"
M%&c F)n"%tinJ&
B)&ine&& fr Sci%!
Re&$n&i/i!it*
A,%r"& <==@
'Best Corporate Social Responsibility Practice'
award
O)t!+ Mne* L
NDTV Prfit
Best Bank Award in the Private sector category.
The A&i%n B%n+er
E2ce!!ence in Ret%i!
Fin%nci%! Ser.ice&
A,%r"&
Best Retail Bank in India
A&i%n B%n+er Our Managing Director Aditya Purim wins the
Leadership Achievement Award for India
1M financial Mutual Fund
One f In"i%J& fir&t $ri.%te &ectr #)t)%! f)n"&- JM #)t)%! f)n" ,%&
!%)nche" /* the ne f the /e&tD+n,n "#e&tic /r+er%(e&- JM Fin%nci%!-
,ne" /* the C#$%n* f%#i!*1 The Ni!e& C#$%n*D!e" JM 6r)$ $!%*e"
% $i.t%! r!e in the "e.e!$#ent f In"i%J& n%¢ c%$it%! #%r+et& in the
;C>=&1
JM #)t)%! f)n" i& nt % $%rt f JM Mr(%n St%n!e*- JM Fin%nci%!&
0int .ent)re ,ith Mr(%n St%n!e* fr in.e&t#ent /%n+in( %n" ther
fin%nci%! &er.ice&1 The f)n" i& &$n&re" /* JM Fin%nci%! %n" In.e&t#ent
Cn&)!t%nc* Ser.ice& Pri.%te Li#ite" %n" JM Fin%nci%! Li#ite"1
The AMC f the f)n" i& JM Fin%nci%! A&&et M%n%(e#ent Pri.%te
Li#ite"1 The AMC &t%rte" $er%tin& in Dece#/er ;CCH ,ith %
&i#)!t%ne)& !%)nch f three f)n"&- JM Li8)i" F)n" (n, JM Inc#e
F)n"'- JM E8)it* F)n" %n" JM /%!%nce" F)n"1 The c#$%n* i& he%"e" /*
Vi0%* Ae!+%r- fr#er fin%nce &ecret%r* %n" %".i&r t the (.ern#ent f
In"i%- %& ch%ir#%n f the /%r"1
A& f A)( <==F- the f)n" h%& %&&et& f .er R&1H- <H; crre )n"er
#%n%(e#ent1
Debt Funds
JM Inc#e
JM Inc#e In&tit)tin%!
JM E8)it* L Deri.%ti.e
JM Shrt Ter#
JM Shrt Ter# In&tit)tin%!
JM F!%ter Ln( Ter#
JM F!%ter Shrt Ter#
JM FMP O)%rter!* SA?
JM FMP O)%rter!* SB?
JM 4i(h Li8)i"it*
JM 4i(h Li8)i"it* In&tit)tin%!
JM 4i(h Li8)i"it* S)$er In&tit)tin%!
Gilt Fund
JM 6DSec PF
JM 6DSec PF $!)&
JM 6DSec Re()!%r
Equity Funds
JM E8)it*
JM B%&ic F)n"
JM A)t&ectr F)n"
JM 4e%!thc%re Sectr F)n"
MIP
JM MIP Di.i"en" Mnth!*
JM MIP Di.i"en" O)%rter!*
JM MIP Di.i"en" 5e%r!*
JM MIP 6r,th
Balanced Funds
JM B%!%nce" 6r,th
JM B%!%nce" Di.i"en"
PERFORMANCE
EVALUATION OF
SELECTED
MUTUALFUNDS
PERFORMANCE EVALUATION OF SELECTED MUTUALFUNDS
EVALUTATION OF MUTUAL FUNDS:
In In"i%- %t $re&ent- there %re #%n* #)t)%! f)n"& %& %!& in.e&t#ent
c#$%nie& $er%tin( /th in the $)/!ic &ectr %& ,e!! %& in the $ri.%te
&ectr1 The&e c#$ete ,ith e%ch ther fr #/i!i9in( the in.e&t#ent f)n"&
,ith in"i.i")%! in.e&tr& %n" ther r(%ni9%tin& "e&ir)& f $!%cin( their
f)n"& ,ith the&e #)t)%! f)n"& ,)!" !i+e t +n, the c#$%r%ti.e
$erfr#%nce f e%ch & %& t &e!ect the /e&t #)t)%! f)n" r in.e&t#ent
c#$%n*1 Fr thi&- e.%!)%tin f the $erfr#%nce f #)t)%! f)n"& %n" their
&che#e& i& necc&&%r*1
PERFORMANCE MEASURES OF MUTUAL FUNDS
In r"er t "eter#ine the ri&+ %"0)&te" ret)rn& f in.e&tin( $rtf!i-
&e.er%! e#inent %)thr& h%.e ,r+e" &ince ;CF=B& t "e.e!$ c#$&ite
$erfr#%nce in"ice& t e.%!)%te % $rtf!i /* c#$%rin( %!tern%ti.e
$rtf!i ,ithin % $%rtic)!%r ri&+ c!%&&1 The #&t i#$rt%nt %n" ,i"e!* )&e"
#e%&)re& f $erfr#%nce f M)t)%! F)n"& %reM
1 The Tre*nrB& Me%&)re
2 The Sh%r$eB& Me%&)re
3 The Jen&nB& M"e!
MEASURING MUTUAL FUNDS RETURN
The fir&t &te$ in #)t)%! f)n" e.%!)%tin i& c%!c)!%tin f the r%te f
ret)rn e%rne" .er the h!"in( $eri"1 Ret)rn #%* /e "efine" t inc!)"e
ch%n(e& in the .%!)e f the #)t)%! f)n" .er the h!"in( #)t)%! f)n" $!)&
%n* inc#e e%rne" .er the $eri"1 4,e.er- in the c%&e f #)t)%! f)n"&-
")rin( the h!"in( $eri"- C%&h inf!,& int the f)n" %n" c%&h ,ith"r%,%!&
fr# the f)n" #%* cc)r1 The )nitD.%!)e #eth" #%* /e )&e" t c%!c)!%te
ret)rn in thi& c%&e1
The ne $eri" r%te f ret)rn- r- fr % #)t)%! f)n" #%* then /e
"efine" %& the ch%n(e in the $er )nit net %&&et .%!)e (NAV'- $!)& itB& $er
)nit c%&h "i&/)r&e#ent& (D' %n" $er )nit c%$it%! (%in& "i&/)r&e#ent& (C'
&)ch %& /n)& &h%re&- it #%* /e c%!c)!%te" %&1
R%$P (NAVtDNAVtD;' Q DT Q C
NAV
t
D
;
Were
NAVt P NAV $er )nit %t the en" f the h!"in( $eri"
NAVtD; P NAV $er )nit %t the /e(innin( f the h!"in( $eri"
Dt P C%&h "i&/)r&e#ent& $er )nit ")rin( the h!"in( $eri"
Ct P C%$it%! (%in& "i&/)r&e#ent& $er )nit ")rin( the h!"in(
$eri"
Thi& fr#)!% (i.e& the h!"in( $eri" *ie!" r r%te f ret)rn e%rne"
n % #)t)%! f)n"1 Thi& #%* /e e2$re&&e" %& % $ercent%(e1
RISK AD1USTED RETURNS
Ri&+ free r%te f intere&t i& the ret)rn th%t %n in.e&tr c%n e%rn in %
ri&+ !e&& &ec)rit*- i1e1- ,ith)t /e%rin( %n* ri&+1 The ret)rn e%rne" .er %n"
%/.e the ri&+ free r%te i& the ri&+ $re#i)# th%t i& the re,%r" fr /e%rin(
ri&+1
THE SHARPE`s MEASURE:
In thi& #"e!- $erfr#%nce f f)n" i& e.%!)%te" n the /%&i& f
Sh%r$e r%ti- ,hich i& r%ti f ret)rn& (ener%te" /* the f)n" .er %n" %/.e
ri&+ free ret)rn %n" the tt%! ri&+ %&&ci%te" ,ith it1 Accr"in( t Sh%r$e it
i& the tt%! "i&+ f the f)n" th%t the in.e&tr& %re cncerne" %/)t1 S- thi&
#"e! e.%!)%te& f)n"& n the /%&i& f re,%r" $er )nit f tt%! ri&+
Prtf!i %.er%(e ret)rn N Ri&+ free r%te f ret)rn
Sh%r$e in"e2 P DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD
St%n"%r" "e.i%tin f the $rtf!i ret)rn
S*#/!ic%!!*- it c%n /e ,ritten %&M
(R
p
- Rf )
Sp ÷ ---------------------------
?p
Where
Sp ÷ Sharpe index
Rp ÷ Portfolio average return
Rf ÷ Risk free rate of return
?p ÷ Standard deviation of the portfolio return
Whi!e % hi(h %n" $&iti.e Sh%r$e r%ti &h,& % &)$erir ri&+ %"0)&te"
$erfr#%nce f % f)n"- % !, %n" ne(%ti.e Sh%r$e r%ti i& %n in"ic%tin f
)nf%.r%/!e $erfr#%nce1
THE TREYNOR`s MEASURE:
It ,%& "e.e!$e" /* J%c+ Tre*nr1 Tre*nrB& In"e2 i& % r%ti f
ret)rn (ener%te" /* the f)n" .er %n" %/.e ri&+ free ret)rn (i1e1
6.ern#ent &ec)ritie&- Tre%&)r* /i!!&'- ")rin( the (i.en $eri" f ti#e
%n" &*&te#%tic ri&+ %&&ci%te" ,ith /et%1
(R
ap
- F
ro
)
Tenor`s Index ÷ ----------------------
?p
Where
R
p
= represent the return of fund
R
f =
represents the risk free rate
?p = represent beta of funds
A!! ri&+D%.er&e in.e&tr& ,)!" !i+e t #%2i#i9e thi& .%!)e1
Whi!e % hi(h %n" $&iti.e tre*nrB& in"e2 &h,& % &)$erir ri&+ %"0)&te"
$erfr#%nce f f)n"- % !, %n" ne(%ti.e tre*nrB& in"e2 i& %n in"ic%tin
f )nf%.r%/!e $erfr#%nce&
1ENSENs MODEL:
J%n&enB& #"e! $r$&e& %nther ri&+ %"0)&te" $erfr#%nce
#e%&)re1 Mich%e! Jen&n "e.e!$e" thi& #e%&)re %n" i& &#ethin(
referre" %& the "ifferenti%! ret)rn #eth"1 Thi& #e%&)re in.!.e&
e.%!)%tin f ret)rn& th%t the f)n" h%& (ener%te" V& the ret)rn %ct)%!!*
)t f the f)n" (i.en %t th%t !e.e! f &*&te#%tic ri&+1 The &)r$!)&
/et,een the t, ret)rn& in c%!!e" A!$h%- ,hich #e%&)re& the
$erfr#%nce f % f)n" c#$%re" ,ith the %ct)%! ret)rn& .er the $eri"1
Re8)ire" r%te f ret)rn n f)n" %t % (i.en !e.e! f Bet%
C%n /e c%!c)!%te" %&M
?
p
R
p
÷ ----------
?
p
Where _
?
p
÷ R
p
- R
p
_
R
p
P R
f
Q ?
p
( R
m
- R
f
)
1p ÷ 1ensen`s Ratio
?p ÷ The intercept
?p ÷ A measure of systematic risk
Rp ÷ Average return of portfolio
Rf ÷ Risk free rate of return
Rm ÷ Average market return
R
#
i& %.er%(e #%r+et ret)rn ")rin( the (i.en $eri"1
F
r
i& the ri&+ free r%te f ret)rn
Performance Measurement
In thi& &ectin- %n %tte#$t i& #%"e t #e%&)re the $erfr#%nce f
&e!ecte" #)t)%! f)n"&1 Fr thi& $)r$&e the #"e!& "e.e!$e" /*
Sh%r$e- Tre* nr %n" Jen&een ,ere )&e"1 Befre t%+in( )$ thi&- the
"et%i!& %/)t ret)rn& f &e!ecte" f)n"& %re $re&ente"1 In %""itin- t h%.e
%n i"e% %/)t .!%ti!it* f f)n"& t #%r+et ret)rn- the Bet% .%!)e& %n"
&t%n"%r" "e.i%tin .%!)e& %re c%!c)!%te"1
Table 1.1: Equity Fund Dividends
Year Percentage of return
SBI UTI HDFC 1M
financial
Market
Index
2005 9.70 6.65 13.25 4.18 9.60
2006 9.15 2.35 5.00 0.692 11.41
2007 12.93 10.70 8.70 11.40 10.10
AVG 10.40 6.57 8.98 5.43 10.37
Source: www.mutualfundsindia.com
www.bseindia.com
The %.er%(e ret)rn f SBI i& ;=1H=R %n" hi(he&t i& ;<1C?R %n" !,e&t
i& C1;>R it i& cnc!)"e" th%t the ret)rn i& incre%&e" tren"1
The ret)rn f UTI f)n" &h,& th%t it h%& e%rne" hi(he&t ret)rn f ;=1@=
R n it& in.e&t#ent& in the *e%r <==@1 It h%&- n %n AV6 (ener%te" %
ret)rn f F1>@R fr the $eri" fr# <==>D<==@1
A.er%(e ret)rn f 4DFC i& G1C@GR %n" the hi(he&t in <==> i& ;?1<>R
%n" !,e&t i& in <==F i& "ecre%&e" >1==R1
The ret)rn f JM fin%nci%! f)n" &h,& th%t e%rne" hi(he&t ret)rn f
;;1H=R n it& in.e&t#ent& in the *e%r <==@1 An" !,e&t i& in <==F i&
"ecre%&e" =1FC<R1 It h%& n AV6 (ener%te" ret)rn f >1H?Rfr the $eri"
fr# <==>D<==@1
M%r+et ret)rn i& in <==> C1F=R %n" in <==F ;;1H@R %n" in <==@ i&
;=1;=>R1 S- it cnc!)"e" th%t #%r+et ret)rn %!& hi(h in <==> /)t it
"ecre%&e" in <==F %n" incre%&e" in <==@1
The %.er%(e ret)rn f SBI i& #re th%n ther #)t)%!f)n"&
Table1.2: Equity fund growth
Year
Percentage of return
SBI UTI HDFC 1M
financial
Market
Index
2005 9.70 11.20 13.22 11.25 9.60
2006 10.83 3.33 5.10 10.05 11.41
2007 11.68 7.07 11.65 11.65 10.10
AVG 10.73 7.20 9.99 10.98 10.37
S)rceMwww.mutualfundsindia.com
:www.bseindia.com
The %/.e t%/!e re.e%!& th%t SBI #%"e % hi(he&t ret)rn f ;;1FGR n
it& in.e&t#ent *e%r <==@1%n" !,e&t i& in <==> i& "ecre%&e" C1@=R1
4,e.er it h%& e%rne" n %n %.er%(e ;=1@?R ret)rn n in.e&t#ent fr the
$eri" <==>D =F
The UTI f)n" #%"e hi(he&t ret)rn f ;;1<=R n it& in.e&t#ent in the
*e%r <==> %n" !,e&t i& in <==F i& "ecre%&e" ?1??R1n %n %.er%(e the f)n"
#%"e % ret)rn @1<=R in $eri" <==>D=@1
The ret)rn f 4DFC f)n" %!& f!!,in( thi& &%#e tren"1 It h%& nee"
hi(he&t ret)rn ;?1<<R %n" !,e&t i& in <==F i& "ecre%&e" >1;=R1 The f)n"
h,e.er %.er%(e ret)rn f C1CCR ")rin( $eri"1
The JM fin%nci%! f)n" #%"e % hi(he&t ret)rn f ;;1F>R n it& in.e&t#ent&
in the *e%r <==F it h%& %!& %n" !,e&t ret)rn f ;=1=>R in *e%r <==F n
%.er%(e ret)rn f ;=1CGR fr the $eri" <==>D=@1
M%r+et ret)rn f)n" %!& f!!,in( &%#e tren" it h%& #%"e hi(he&t
ret)rn f ;;1H;R it in.e&t#ent in *e%r <==F %n" !,e&t ret)rn f C1F=R in
*e%r <==>1 The f)n" he,er AV6 ret)rn f ;=1?@R ")rin( the $eri"1
The c#$%r%ti.e %n%!*&i& thi& fre f)n"& &h,& th%t JM fin%nce f)n"
#%"e % hi(he&t %.er%(e ret)rn ;=1CGR %n" n it& in.e&t#ent fr the $eri"
<==>D=@- f!!,e" /* SBI %n" UTI %n" 4DFC f)n" th%t r"er-
Table 1.3: Balanced Fund Dividend
Years Percentage of return
SBI UTI HDFC 1M
financial
Market
Index
2005 6.3 8.93 -1.73 11.43 9.60
2006 8.13 19 3.375 5.65 11.41
2007 9.45 5.58 12.42 10.30 10.10
AVG 7.98 11.17 4.69 9.13 10.37
Source : www.mutualfundsindia.com
Mwww.bseindia.com
Fr the %/.e c%n /e cnc!)"e" th%t SBI f)n" #%"e hi(he&t ret)rn
f C1H>R n it in.e&t#ent fr the *e%r <==@ %n" !,e&t ret)rn f F1?=R-in
<==>1 4,e.er the f)n" #%"e n %n AV6 @1CGR fr $eri" <==>D=@-
The ret)rn f UTI f)n" &h,& th%t it h%& e%rne" % hi(he&t ret)rn f
;C1==R n it& in.e&t#ent in *e%r <==F %n" !,e&t ret)rn f >1>GR in <==@1
it h%& n %n AV6 % ret)rn f ;;1;@R fr $eri" <==>D=@1
In thi& f)n" %!& the ret)rn f 4DFC f)n" %!& f!!,in( the &%#e
tren"1 It h%& #%"e hi(he&t ret)rn ;<1H<R n it& in.e&t#ent in the *e%r
<==@1 it h%& %!& inc)rre" !&e f ;1@?Rn in *e%r <==>1 it h%& n %n %.er%(e
(ener%te" % ret)rn f H1FCR fr the $eri" <==>D=@1
The ret)rn f JM fin%nce f)n" &h, th%t h%& e%rne" % hi(he&t ret)rn
f ;;1H?R n in.e&t#ent in the *e%r <==> %n" !,e&t ret)rn f >1F>R in
*e%r <==F1the f)n" h,e.er AV6 f C1;?R ")rin( $eri"1
The ret)rn f #%r+et ret)rn f)n" %!& f!!,in( the &%#e tren" it h%&
#%"e hi(he&t ret)rn f ;=1H;R %n" !,e&t ret)rn f C1F=R in *e%r <==>1the
f)n" h,e.er AV6 f ;=1?@R ")rin( $eri"- the %.er%(e ret)rn UTI #re
then ther #)t)%! f)n"&1
Table 1.4: Balanced Fund Growth
Years Percentage of return
SBI UTI HDFC 1M
financial
Market
Index
2005 10.60 5.78 6.48 6.59 9.60
2006 7.78 5.85 6.43 9.55 11.41
2007 10.78 8.28 6.70 10.38 10.70
AVG 9.74 6.64 6.53 8.84 10.37
Source : www.mutualfundsindia.com
Mwww.bseindia.com
It& c%n /&er.e" fr# the %/.e t%/!e th%t SBI f)n" #%"e ret)rn f
%/)t ;=1@GR1n itB& in.e&t in the *e%r <==@1 it h%& !,e&t ret)rn f @1@GR
in the *e%r <==F1 The f)n" %!& #%"e %n AV6 ret)rn f %/)t C=@< ")rin(
$eri" fr# <==>t <==@1
The ret)rn f UTI f)n" &h, th%t it e%rne" % hi(he&t ret)rn f G=1<GR
n it& in.e&t#ent& in the *e%r <==@%n" !,e&t ret)rn f >=1@GR in <==>1 It
h%& n %n %.er%(e (ener%te" % ret)rn f F1FHR fr the $eri" fr# <==>D=@1
The 4DEFC f)n" h%& #%"e % hi(he&t ret)rn f F1@=R n it&
in.e&t#ent fr the *e%r <==@%n" !,e&t ret)rn f F1H?Rin <==F1the f)n"
#%"e %.er%(e ret)rn f F1>?R ")rin( the $eri"1
The JM fin%nci%! f)n" h%& #%" % hi(he&t ret)rn f ;=1?GR n it&
in.e&t#ent fr the *e%r <==@ %n" !,e&t ret)rn f F1>CRin <==>1 F)n"
#%"e %n AV6 ret)rn f G1GHR in the $eri" fr# <==>D<==@1
The %.er%(e ret)rn f ;=1?@R #%r+et in"e2 #re then ther #)t)%!
f)n"&1
Table – 2: Index Return
year Absolute returnsº
2005 9.60
2006 11.41
2007 10.10
AVG return 10.37
S)rceM www.bseindia.com
Fr# the %/.e t%/!e it c%n /e nte" th%t the in"e2 #%"e hi(he&t f
;;1H;R fr the *e%r <==F in"e2 ret)rn %!& inc)rre" % !,e&t f C1F=R in
*e%r <==> %n n %.er%(e the in"e2 #%"e % ;=1?@Rfr the $eri" <==>D=@1
QUANTIFICATION OF RISK
E2$ecte" Ri&+ (S' P ? L
n
( R
aj
- E (ra))
2
P
j
1÷1
Where
R
%0
P Ret)rn n &ec)rit* “%” )n"er e.ent f “0”
E (r%' P E2$ecte" %.er%(e ret)rn n &ec)rit* “%”
P
0
P Pr/%/i!it* f e.ent “0”
Thi& fr#)!% i& )&e" t fin" the e2$ecte" ri&+1 B)t in the &t)"* #*
/0ecti.e i& t c%!c)!%te the 4i&tric%! Ri&+1 The fr#)!% i&MD
L
n
( R
aj
– Ra)
2
Historical Risk (ó) ÷
1÷1 ??????
N
Where
R
%0
P Ret)rn n &ec)rit* “%” in $eri" f “0”
R% P A.er%(e ret)rn f &ec)rit* “%”
N P N f /&er.%tin&
The e2$%n"e" fr# f the fr#)!% i&M
Historical Risk (ó) ÷ ?
(R
a1
- R
a
)
2
+(R
a2
- R
a
)
2
+ - - - - - - - - +(R
an
-
R
a
)
2
Tables of Standard Deviations
Table 3.1: Equity fund Dividend
Fund name 3year Average
Return
Standard Deviation
SBI 10.40 9.81
UTI 6.57 11.96
HDFC 8.98 11.32
1M financial 5.43 15.43
Market index 10.37 7.29
Source: www.mutualfundsindia.com
M www.bseindia.com
Fr# the %/.e t%/!e $re&ent the %.er%(e ret)rn %n" “?” "et%i!&1
Fr# the t%/!e it c%n /e &een th%t SBI f)n" #%+in( hi(he&t %.er%(e ret)rn
f ;=1HR ")rin( the $eri"1 4,e.er itB& %!& f%cin( hi(he&t “?” f ;>1H?
f %!! the f)r f)n"&1 The UTI f)n" %n" 4DFC f)n" %n" JM fin%nci%!
f)n"& /th %re #%+in( &i#i!r %#)nt %.er%(e ret)rn f %/)t ;=1?@R /)t
#%r+et in"e2 i& f%cin( hi(he&t” ?” f @1<C1
Table 3.2: Equity fund Growth
Fund name 3year Average
return
Standard Deviation
SBI 10.73 12.09
UTI 7.20 7.60
HDFC 9.99 11.56
1M financial 10.98 11.94
Source: www.mutualfundsindia.com
M www.bseindia.com
Fr# the %/.e .%!)e it cn /e cnc!)"e" th%t c#$%re" ,ith ther
f)n"& JM fin%nci%! f)n" #%+in( #re ret)rn& %n" /e%rin( ri&+ f ;;1CH1
Where%& SBI f)n" #%+in( ;=1@?R %.er%(e ret)rn ,ith the”?” f ;<1=C1 It
h%& .er* !, ri&+ %& c#$%re" t UTI f)n" %n" 4DFC f)n"1
Table3.3: Balanced fund Dividend
Fund name 3year Average
return
Standard Deviation
SBI
7.98
9.39
UTI 11.17 17.98
HDFC 4.69 15.67
1M financial 9.136 7.95
Source: www.mutualfundsindia.com
M www.bseindia.com
Fr# the (i.en .%!)e& it i& f)n" th%t UTI f)n" i& e%rnin( ;;1;@R
AV6 ret)rn ,ith the hi(her ? %& c#$%re" t ther f)n"&
Table 3.4Balanced fund Growth1
Fund name 3years average
return
Standard Deviation
SBI 9.72
8.68
UTI
6.64 6.75
HDFC
6.53 8.37
1M financial
8.84 8.45
Source: www.mutualfundsindia.com
M www.bseindia.com
Fr# the (i.en .%!)e& it i& f)n" th%t SBI f)n" i& e%rnin(
C1@<RAV6ret)rn ,ith hi(he&t “?” %& c#$%re" t ther f)n"&1
Concept of Beta
Bet% i& % #e%&)re f re!%ti.e ri&+ f % &ec)rit* r it& &en&iti.it* t the
#.e#ent& in the #%r+et1 It i& % #e%&)re f .!%ti!it* r the &*&te#%tic ri&+
f%ce" /* %n %&&et r $rtf!i r $r0ect1 It i& c%!c)!%te" /* )&in( the
c.%ri%nce /et,een ret)rn& f %&&et& %n" ret)rn& f the #%r+et $rtf!i-
"i.i"e" /* .%ri%nce f ret)rn n the #%r+et $rtf!i1 It &h,& h, the
$rice f % &ec)rit* re&$n"& t #%r+et f%ctr&1 M%r+et ret)rn i& #e%&)re"
/* the %.er%(e ret)rn f % !%r(e &%#$!e f &tc+&1
The /et% fr the .er%!! #%r+et i& e8)%! t ;1== %n" ther /et%& %re
.ie,e" in re!%tin t thi& .%!)e1 Bet%& c%n /e $&iti.e r ne(%ti.e1 M%n*
!%r(e /r+er%(e fir#&- in.e&t#ent c#$%nie& %n" fin%nci%! cn&)!t%nt&
$r.i"e /et% fr !%r(e n)#/er f &tc+&1
BETA CALCULATION
NLXY - LXLY
þ ÷
NLX
2
– (L X)
2
Where
N P N f /&er.%tin&
LX P S)# f 3 ret)rn& (4ere 3 i& #%r+et ret)rn'
LY P S)# f 5 ret)rn& (4ere 5 i& % $%rtic)!%r f)n" ret)rn'
X
2
P 3 T 3
UXY P S)# f 3 T 5
Calculation of Beta
Table 4.1: Equity fund Dividend
Fund
name
?X ?Y ?XY ?X
2
?
SBI 127.1 124.48 1738.00 2501.63 0.36
UTI 78.8 124.48 1051.18 2234.50 0.14
HDFC 107.80 124.48 1473.95 2508.06 0..23
1M
financial 65.07 124.48 1024.17 3211.26 0.17
Source: www.mutualfundsindia.com
M www.bseindia.com
It i& /&er.e" fr# the %/.e t%/!e th%t SBI f)n" re&$n"in( t the
#%r+et r%te /* =1?F ti#e& ,here%& UTI f)n" i& re&$n"in( n!* =1;H ti#e&
t the #%r+et ret)rn1 The SBI f)n" i& #re .!%ti!e th%n UTI %n" 4DFC
%n" JM fin%nci%! f)n"&1
Table4.2: Equity fund Growth
Fund
name
?x ?y ?xy ?x
2
?
SBI 128.8 124.48 1967.85 3138.60 0.38
UTI 86.38 124.48 884.38 1315.77 -0.016
HDFC 119.90 124.48 1276.2 2691.89 0.112
1M
financial
132.10 124.48 1753.21 3165.69 0.22
Source: www.mutualfundsindia.com
M www.bseindia.com
It i& &een fr# the t%/!e th%t SBI f)n"- 4DFC f)n" %n" JM fin%nci%!
#re th%n ne ti#e& f #%r+et ret)rn ,here%& UTI f)n" re&$n"in( n!*
D=1=;F ti#e&1
Table 4.3: Balanced Fund Dividend
Fund
Name
?x ?y ?xy ?x
2
?
SBI 95.60 124.48 1219.06 1820.56 0.21
UTI 111.20 124.48 1230.01 4912.77 0.019
HDFC 56.30 124.48 1194.68 3211.23 0.21
1M
financial
111.20 124.48 1230.01 4912.77 0.22
Source: www.mutualfundsindia.com
M www.bseindia.com
A/.e t%/!e fr# it c%n /e cnc!)"e" th%t th%t the SBI f)n" %n"
4DFC f)n" %n" JM fin%nci%! f)n" %re re&$n"in( #re th%n ne ti#e f
#%r+et ret)rn1 Where%& UTI f)n" re&$n"in( n!* =1=;C t)ne&1
Table 4.4 Balanced fund Dividend
Fund
Name
?x ?y ?xy ?x
2
?
SBI 116.60 124.48 1634.31 2038.36 0.45
UTI 79.60 124.48 1115.59 1075.92 0.53
HDFC 78.40 124.48 1332.85 1353.71 0.61
1M
financial
106.06 124.48 1412.33 1795.29 0.36
Source: www.mutualfundsindia.com
M www.bseindia.com
Fr# the %/.e t%/!e it c%n /e cnc!)"e" th%t the SBI f)n"- UTI
f)n" %n" 4DFC f)n" %re re&$n"in( #re th%n ti#e& f #%r+et ret)rn1
Where%& JM fin%nci%! f)n" re&$n"in( n!* =1?F ti#e&1
Sharpe Measurement Ratio Tables
Table 5.1: Equity Fund Dividend
Fund
Name
Rp Rf
?p
Sharpe
Ratio
Rank
SBI 10.59 6.50 9.81 0.416 I
UTI 6.59 6.50 11.98 0.007 III
HDFC 8.98 6.50 11.32 0.219 II
1M
financial
5.42 6.50 15.43 -0.0069 IV
Market
Index
10.38 6.50 7.29 0.532 -
Source: www.mutualfundsindia.com
M www.bseindia.com
The t%/!e &h,& th%t SBI f)n" %& $er Sh%r$e #e%&)re#ent i& r%n+e"
ne ,here&e 4DFC f)n" (ettin( IIn" r%n+1 The UTI f)n" (ettin( IIIr"
r%n+1 JM fin%nci%! (ettin( IVth r%n+ in the Sh%r$e e.%!)%tin1
A& c#$%re" % #%r+et in"e2 SBI f)n" i& e%rnin( (" ret)rn %n"
UTI f)n" i& (ettin( /etter ret)rn& ,here %& 4DFC f)n" i& /etter ret)rn
,here JM fin%nci%! f)n" i& (ettin( ,here%& ret)rn&1
Table 5.2: Equity Fund Growth
Fund
Name
Rp Rf
?p
Sharpe
Ratio
Rank
SBI 10.73 6.50 12.09 0.34 I
UTI 7.19 6.50 7.60 0.090 IV
HDFC 9.99 6.50 11.56 0.301 III
1M
financial
11.00 6.50 11.94 0.376 II
Source: www.mutualfundsindia.com
M www.bseindia.com
A& $er &h%r$e #e%&)re#ent- SBI f)n" i& r%n+e" I&t- JM fin%nci%! f)n" i&
r%n+e" IIn" %n" 4DFC f)n" i& III r%n+e"- %n" UTI f)n" i& IVth r%n+e"1 B*
c#$%rin( ,ith #%r+et ret)rn %!! the f)n"& %re (ettin( !, ret)rn
Table 5.3: Balanced Fund Dividend
Fund
Name
Rp Rf
?p
Sharpe
Ratio
Rank
SBI 7.96 6.50 9.39 0.155 II
UTI 9.26 6.50 17.90 0.154 III
HDFC 4.69 6.50 15.67 -0.115 IV
1M
financial
9.12 6.50 7.95 0.329 I
Source: www.mutualfundsindia.com
M www.bseindia.com
Accr"in( &h%r$e #"e!- JM fin%nci%! f)n" i& $!%ce" Fir&t r%n+e"
SBI f)n" %n" UTI f)n" &h%r$e IIIr" %n" IIn" r%n+e"- 4DFC f)n" i& $!%ce"
IVth r%n+& re&$ecti.e!* c#$%n* ,ith #%r+et ret)rn %! the f)n"& ne
$erfr#in( ,e!!1
Table 5.4: Balanced Fund Growth
Fund
Name
Rp Rf
?p
Sharpe
Ratio
Rank
SBI 9.71 6.50 8.68 0.369 I
UTI 6.63 6.50 6.75 0.019 III
HDFC 6.52 6.50 8.37 0.003 IV
1M
financial
8.88 6.50 8.45 0.281 II
Source: www.mutualfundsindia.com
M www.bseindia.com
Accr"in( &h%r$e #"e!- SBI f)n" i& $!%ce" fir&t r%n+ JM fin%nci%!
%n" UTI f)n" &h%re IIIr" %n" IIn" r%n+ 4DFC f)n" i& $!%ce" IVth r%n+e"1
Re&$ecti.e!* c#$%rin( ,ith #%r+et ret)rn %!! f)n" %re $erfr#in( ,e!!1
B* c#$%rin( %!! the f)r &che#e& i1e1 SBI- UTI- %n" 4DFC %n"
f)n" it c%n /e f)n" th%t the /%!%nce" f)n" (r,th i& (ettin( (" ret)rn
th%n the %n* &che#e& the /%!%nce" "i.i"en" &che#e i& /e%rin( #re ri&+
the# the %n* ther &che#e&
Treynor Measurement Ratio Tables
Table 6.1: Equity Fund Dividend
Fund
Name
Rp Rf
?p
Trey nor
Ratio
Rank
SBI 10.59 6.50 0.36 14.13 I
UTI 6.59 6.50 0.14 0.642 III
HDFC 8.99 6.50 0.23 10.78 II
1M
financial
5.42 6.50 0.17 -69.352 IV
Market
Index
10.38 6.50 1 3.88 -
Source: www.mutualfundsindia.com
M www.bseindia.com
A/.e t%/!e re.e%!& th%t SBI f)n" r%n+e" fir&t in ter#& f #%+in(
ret)rn& ,here%& IIn" r%n+ &h%re" /* 4DFC f)n" %n" IIIr" r%n+ /* UTI
f)n" %n" the IVth r%n+ JM fin%nci%! in ter#& f #%+in( ret)rn f in re!%tin(
t #%r+et ret)rn&1
C#$%rin( ,ith the #%r+et ret)rn %(%in SBI f)n" i& (ettin( ("
ret)rn&1 UTI f)n" i& e%rne" /etter ret)rn&- ,here%& 4DFC f)n" i& e%rne"
/etter ret)rn& JM fin%nci%! f)n" i& nt #%+in( &)rricient1
Table 6.2: Equity Fund Growth
Fund
Name
Rp Rf
?p
Trey nor
Ratio
Rank
SBI 10.73 6.50 0.38 11.13 I
UTI 7.19 6.50 0.016 -43.12 IV
HDFC 9.99 6.50 0.42 10.78 II
1M
financial
11.00 6.50 0.22 -6.352 III
Source: www.mutualfundsindia.com
M www.bseindia.com
Fr# the (i.en t%/!e it i& /&er.e" th%t SBI f)n" i& r%n+e" Fir&t-
4DFC f)n" %n" JM fin%nci%! f)n" %re r%n+e" IIIr" %n" IIn" %n" UTI f)n"
i& r%n+e" IVth re&$ecti.e!*1 When c#$%re" ,ith #%r+et ret)rn %!! the
f)n"& %re nt (ettin( &)fficient ret)rn&
Table 6.3 Balanced Fund Dividends
Fund
Name
Rp Rf
?p
Trey nor
Ratio
Rank
SBI 7.96 6.50 0.21 6.952 III
UTI 9.26 6.50 0.019 145.26 I
HDFC 4.69 6.50 0.21 -8.61 IV
1M
financial
9.12 6.50 0.22 11.90 II
Source: www.mutualfundsindia.com
M www.bseindia.com
O/&er.in( (i.en t%/!e it i& +n,n th%t UTI f)n" i& r%n+e" Fir&t JM
fin%nci%! f)n" IIn" SBI f)n" i& IIIr" %n" 4DFC f)n" i& IVth c#$%rin(
,ith #%r+et ret)rn %!! the f)n"& %re nt (ettin( &)fficient ret)rn&1
Table 6.4 Balanced Fund Growth
Fund
Name
Rp Rf
?p
Trey nor
Ratio
Rank
SBI 9.71 6.50 0.415 7.33 I
UTI 6.63 6.50 0.53 0.245 III
HDFC 6.53 6.50 0.37 0.081 IV
1M
financial
8.88 6.50 0.36 6.611 II
Source: www.mutualfundsindia.com
M www.bseindia.com
Fr# the (i.en it i& /&er.e" th%t SBI f)n" i& r%n+e" Fir&t JM
fin%nci%! %n" UTI f)n" %re r%n+e" IIIr" %n" IIn" %n" 4DFC f)n" IVth
re&$ecti.e!* c#$%rin( ,ith #%r+et ret)rn %!! the f)n" %re #%+in( ("
ret)rn1
Accr"in( t ter*nr& #e%&)re#ent %!& /%!%nce" f)n" (r,th
&che#e i& $erfr#in( ,e!! %& c#$%re" t the #%r+et ret)rn %n" /%!%nce"
(r,th f)n" i& nt $erfr#in( f the /ench #%r+et i1e1- M%r+et ret)rn1
1ENSEN PERFORMANCE MEASUREMENT RATIO TABLE
Table 7.1: Equity Fund Dividend
Fund Name
R
m
R
f
þ
p
R
p R
p
o
p
1
p Rank
SBI 10.37 6.50 0.36 10.40 26.54 -16.41- -44.83 I
UTI 10.37 6.50 0.14 6.57 25.70 -19.13 136.64 IV
HDFC 10.37 6.50 0.23 8.98 -25.78 -169.80 -73.14 II
1M financial 10.37 6.50 0.17. 5.43 25.81 -20.38 -119.8 III
Source: www.mutualfundsindia.com
M www.bseindia.com
A& $er Jen&en $erfr#%nce #e%&)re#ent the SBI f)n" r%n+e" Fir&t (ettin(
% ne(%ti.e fi()re f DHH1G? ,hich i& %n in"ic%tin th%t the #%n%(e#ent h%&
)&e" (re%ter &+i!!& in #%n%(in( the in.e&t#ent1
Where%& 4DFC r%n+e" IIn" (ettin( % $&iti.e fi()re f D@?1;H ,hich
i& #"er%te!* $erfr#in(1 4,e.er the UTI f)n" i& $erfr#in( ne(%ti.e!*-
the #%n%(e#ent f UTI f)n" f%i!e" t #%n%(e the in.e&t#ent effecti.e!*1
Table 7.2 Equity Fund Growth
Fund Name
R
m
R
f
þ
p
R
p
R
p
o
p
1
p
Rank
SBI 10.37 6.50 0.38 10.73
26.6
2
-15.89 -41.81 IV
UTI 10.37 6.50 -0.016 7.20
25.0
9
-17.89 111.12 I
HDFC 10.37 6.50 0.42 9.92
26.7
8
-16.86 -40.14 III
1M financial 10.37 6.50 0.22 10.98
26.0
0
-15.02 -6.83 II
Source: www.mutualfundsindia.com
M www.bseindia.com
Accr"in( t Jen&en #"e! %!! the f)n"& %re f%i!e" t e%rn )$ t the #%r+
ret)rn&1 The UTI F)n" r%n+e" fir&t (ettin( % fi()re f =(%$$r2'- ,hich i&
%n in"ic%tin th%t the #%n%(e#ent h%& "i" nt )&e (re%t &+i!!& in #%n%(in(
the $rtf!i1
Fr# the (i.en th%t /&er.e" UTI r%n+e" Fir&t1 Where%& JM
fin%nci%! F)n" i& r%n+e" &ecn" /* (ettin( % ne(%ti.e fi()re f !e&& then ;1
4,e.er the UTI f)n" i& $erfr#in( ne(%ti.e!*- the #%n%(e#ent f UTI
f)n" f%i!e" t #%n%(e the $rtf!i effecti.e!*
Table 7.3: Balanced Fund Dividends
Fund Name R
m
R
f
þ
p
R
p R
p
o
p
1
p Rank
SBI 10.37 6.50 0.21 7.99 25.97 -17.99 -85.66 II
UTI 10.37 6.50 0.019 11.17 25.22 -14.05 -739.47 IV
HDFC 10.37 6.50 0.21 4.69 25.97 -21.28 -101.33 III
1M financial 10.37 6.50 0.22 9.23 26.00 -16.87 -76.68 I
Source: www.mutualfundsindia.com
M www.bseindia.com
Accr"in( t Jen&en #"e! %!! the f)n"& %re f%i!e" t e%rn )$ t the
#%r+ ret)rn&1 A& c#$%re" t ther f)n"& UTI f)n" $erfr#in( ,ith ,r&t
ret)rn f N@?C1H@1 On the /%&i& f the %/.e $re&ent%tin- it c%n /e f)n"
th%t the MNC in")&tr* i& f%cin( % $r/!e#- & %!! the f)n"& %re nt (ettin(
&)fficient ret)rn&1
Table 7.4: Balanced Fund Growth
Fund Name
R
m
R
f
þ
p
R
p R
p
o
p
1
p Rank
SBI 10.37 6.50 0.45 9.72 26.89 -17.17 -38.15 III
UTI 10.37 6.50 0.53 6.64 27.20 -20.56 -38.79 II
HDFC 10.37 6.50 8.37 6.53 57.54 -51.01 -6.09 I
1M financial 10.37 6.50 0.36 8.84 26.54 -17.70 -49.16 IV
Source: www.mutualfundsindia.com
M www.bseindia.com
Accr"in( t Jen&en #"e! %!! the f)n"& %re f%i!e" t e%rn )$ t the
#%r+ ret)rn&1 The 4DFC F)n" r%n+e" fir&t (ettin( % fi()re f =(%$$r2'-
,hich i& %n in"ic%tin th%t the #%n%(e#ent h%& "i" nt )&e (re%t &+i!!& in
#%n%(in( the $rtf!i1
Where%& 4DFC F)n" i& r%n+e" &ecn" /* (ettin( % ne(%ti.e fi()re
f !e&& th%n ;1 4,e.er the 4DFC f)n" i& $erfr#in( ne(%ti.e!*- the
#%n%(e#ent f 4DFC f)n" f%i!e" t #%n%(e the $rtf!i effecti.e!*1
CONCLUSION
CONCLUSION
It i& h$ef)! th%t thi& &t)"* cre%te& %,%rene&& th%t the #)t)%! f)n"&
%re ,rth in.e&t#ent $r%ctice1 The .%ri)& &che#e& f #)t)%! f)n"&
$r.i"e the in.e&tr& ,ith % ,i"e r%n(e f in.e&t#ent& $tin& %ccr"in(
t hi& ri&+ /e%rin( c%$%citie& %n" intere&t1 Be&i"e& the* %!& (i.e % h%n"*
ret)rn t the in.e&tr&1 The $r0ect %n%!*&e& .%ri)& &che#e& f Different
C#$%nie&1
In In"i% M)t)%! f)n"& %re $!%*in( i#$rt%nt r!e1 The #)t)%! f)n"
C#$%nie& $! the &%.in(& f &#%!! in.e&tr& %n" in.e&t th&e c!!ecte"
h)(e %#)nt f f)n"& in "ifferent &ectr& f the ecn#*1 The* %re
$erfr#in( !i+e inter#e"i%r* /et,een &#%!! in.e&tr %n" the In"i%n c%$it%!
#%r+et1 In recent *e%r& #%n* #)t)%! f)n" c#$%nie& %re e&t%/!i&he"1
Thr)(h thi& c#$etitin i& incre%&e" %#n( the c#$%nie&1 T enc)nter
the c#$etitin the "ifferent c#$%nie& %re intr")cin( "ifferent t*$e& f
#)t)%! f)n" &che#e& ,ith %ttr%cti.e ret)rn& %n" !, ri&+1 S it i& %n
%".%nt%(e t the in.e&tr&-1
Fr t%+in( % "eci&in t in.e&t in #)t)%! f)n"&- the e.%!)%tin $!%*&
% (re%ter r!e1 The r%n+in(& (i.en t the #)t)%! f)n"& %ttr%ct the
in.e&t#ent /* the in.e&tr& t the re&$ecti.e f)n"&1 Fr the $)r$&e f
r%n+in( the $erfr#%nce f .%ri)& #)t)%! f)n"& the #eth"& &)ch %&
Sh%r$e1 Tre* nr %n" Jen&en ,ere %$$!ie" t the .%ri)& f)n"& in "ifferent
&che#e&1 It i& h$e" th%t the r%n+& $r.i"e" fr the f)n" in thi& ch%$ter
e2$!%in& re!%ti.e $erfr#%nce f the &che#e&1 The re!%ti.e $erfr#%nce f
"ifferent t*$e& f f)n"& %ccr"in( t "ifferent t*$e& f $erfr#%nce
#e%&)re#ent& %re e2$!%ine" in the ne2t $%(e1
FINDINGS
Accr"in( t Sh%r$e Me%&)re#ent the f!!,in( %re the cnc!)&inM
Equity Fund Dividend Scheme
The SBI F)n"- %& $er Sh%r$e #e%&)re#ent i& r%n+e" ne1 Where %&
4DFC F)n" (t &ecn" r%n+1 The SBI F)n" i& (t thir" r%n+ ,here%& JM
fin%nci%! f)n" (t f)rth r%n+1
Equity Fund Growth Scheme
UTI F)n" i& $!%ce" fir&t r%n+- JM fin%nci%! F)n" %n" 4DFC F)n"
&h%re &ecn" %n" thir" r%n+& re&$ecti.e!* %n" SBI IVth r%n+1 C#$%rin(
,ith #%r+et ret)rn %!! F)n"& i& .er* !, ret)rn&1
Balanced Fund Dividend
A& $er Sh%r$e #e%&)re#ent- JM fin%nci%! f)n" i& r%n+e" One- SBI
f)n" i& r%n+e" t, %n" UTI f)n" i& r%n+e" Three %n" 4DFC f)n" Frth
r%n+1 B* c#$%rin( ,ith #%r+et ret)rn %!! the f)n"& %re (ettin( .er* !,
ret)rn&1
Balanced Fund Growth
Accr"in( t Sh%r$e #"e! SBI f)n" i& $!%ce" Fir&t r%n+e"- JM
fin%nci%! f)n" %n" UTI f)n" &h%re Secn" %n" Thir" r%n+& %n" 4DFC
Frth r%n+ re&$ecti.e!*1 C#$%rin( ,ith #%r+et ret)rn %!! the f)n"& %re
.er* !,1
B* c#$%rin( %! the &che#e& 1i1e1- SBI- UTI %n" 4DFC- JM
fin%nci%! f)n"& th%t the %!! &che#e i& tr)/!in( #re then the %!! &che#e&1
According to Trenor measurement:
Equity Fund Dividend Scheme
The SBI F)n"- %& $er neither tre* nr #e%&)re#ent i& r%n+e" ne1
Where %& 4DFC F)n" (t &ecn" r%n+1 The UTI F)n" i& (ettin( thir" r%n+
%n" JM fin%nci%! f)n" i& Frth r%n+1
A& c#$%re" t #%r+et in"e2 SBI- UTI %n" 4DFC F)n" i& e%rnin(
.er* !, ret)rn& %n" SBI F)n" i& (ettin( /etter ret)rn& ,here%& JM
fin%nci%! F)n" i& (ettin( ,r&t ret)rn&
Equity Fund Growth scheme
SBI F)n" i& $!%ce" fir&t r%n+- JM fin%nci%! F)n" %n" 4DFC F)n"
&h%re thir" %n" &ecn" r%n+& re&$ecti.e!* %n" UTI IVth r%n+1 C#$%rin(
,ith #%r+et ret)rn SBI- 4DFC f)n" %re $erfr#in( ,e!!1 Where%& UTI
%n" JM fin%nci%! f)n"& h%.e .er* !, ret)rn&1
Balanced Fund Dividend scheme
A& $er Ter*nr #e%&)re#ent- UTI f)n" i& r%n+e" One- JM fin%nci%!
f)n" i& r%n+e" T, %n" SBI f)n" i& r%n+e" Three %n" 4DFC f)n" Frth
r%n+1 B* c#$%rin( ,ith #%r+et ret)rn %!! the f)n"& %re (ettin( ("
ret)rn&- e2ce$t 4DFC-
Balanced Fund Growth scehem
Accr"in( t Ter*nr #"e! SBI f)n" i& $!%ce" Fir&t r%n+e"- JM
fin%nci%! f)n" %n" UTI f)n" &h%re Secn" %n" Thir" r%n+& %n" 4DFC
Frth r%n+ re&$ecti.e!*1 C#$%rin( ,ith #%r+et ret)rn %!! the f)n"& %re
$erfr#in( ,e!!1
B* c#$%rin( %! the &che#e& 1i1e1- SBI- UTI %n" 4DFC- JM
fin%nci%! f)n"& th%t the %!! &che#e i& tr)/!in( #re then the %!! &che#e&1
According to 1ensen measurement the following are the
findings:
Equity Fund Dividend Scheme
The SBI F)n"- %& $er neither tre* nr #e%&)re#ent i& r%n+e" One1
Where %& 4DFC F)n" (ettin( &ecn" r%n+1 The JM fin%nci%! F)n" i&
(ettin( thir" r%n+ %n" UTI f)n" i& Frth r%n+1
A& c#$%re" t #%r+et in"e2 SBI-UTI %n" 4DFC F)n" %n" JM
fin%nci%! %!! the f)n"& %re (ettin( !, ret)rn&1
Equity Fund Growth Scheme
UTI F)n" i& $!%ce" fir&t r%n+- JM fin%nci%! F)n" %n" 4DFC F)n"
&h%re thir" %n" &ecn" r%n+& re&$ecti.e!* %n" SBI IVth r%n+1 C#$%rin(
,ith #%r+et ret)rn UTI f)n" %re $erfr#in( ,e!!1 Where%& SBI- 4DFC
%n" JM fin%nci%! f)n" %re .er* !, ret)rn&
Balanced Fund Dividend
A& $er Jen&n #e%&)re#ent- JM fin%nci%! f)n" i& r%n+e" One- SBI
f)n" i& r%n+e" T, %n" 4DFC f)n" i& r%n+e" Three %n" UTI f)n" Frth
r%n+1 B* c#$%rin( ,ith #%r+et ret)rn %!! the f)n"& %re (ettin( .er* !,
ret)
Balanced Fund Growth
Accr"in( t Ter*nr #"e! SBI f)n" i& $!%ce" Fir&t r%n+e"- JM
fin%nci%! f)n" %n" UTI f)n" &h%re Secn" %n" Thir" r%n+& %n" 4DFC
Frth r%n+ re&$ecti.e!*1 C#$%rin( ,ith #%r+et ret)rn %!! the f)n"& %re
$erfr#in( ,e!!1
B* c#$%rin( %! the &che#e& 1i1e1- SBI- UTI %n" 4DFC- JM
fin%nci%! f)n"& th%t the %!! &che#e i& tr)/!in( #re then the %!! &che#e&1
SUGGESTIONS
The &ectin trie& t $re&ent cert%in &)((e&tin&1 The &)((e&tin&
e#er(e fr# the /&er.%tin& #%"e n the $erfr#%nce $&itin& f
.%ri)& f)n"& t%+en fr the &t)"*1
It ,%& /&er.e" th%t %& $er Sh%r$e $erfr#%nce #e%&)re#ent fr the
e8)it* f)n" "i.i"en" &che#e- the e8)it* f)n" (r,th !%((in( /ehin"1
Therefre it i& %".i&e" t reDr(%ni9e the /%!%nce" f)n" "i.i"en" %n"
/%!%nce" f)n" (r,th in.e&t#ent & %& t #%+e #re ret)rn&1
In c%&e f e8)it* f)n" (r,th- /%!%nce" f)n" "i.i"en" #%* cn&i"er
t reDr(%ni9e itB& in.e&t#ent %& it i& !%((in( f%r /ehin" ,hen c#$%re" t
thi& $rtf!i t t%+e the %".%nt%(e f #re ret)rn& fr# the
$h%r#%ce)tic%! &ectr1
In the e8)it* f)n" "i.i"en" %n%!*&i&- the /%!%nce" f)n" $!%ce" in
&ecn" $&itin- therefre thi& f)n" #%* cn&i"er recn&tr)ctin f thi&
in.e&t#ent t%+e the %".%nt%(e f #re ret)rn& fr# the $h%r#%ce)tic%!
&ectr1
A!! the e8)it* f)n" (r,th in c#$%ri&n t the ther f)n"& i& nt
%".i&%/!e fr in.e&t#ent %& $er $re&ent %n%!*&i&1
The in.e&tr& %re %".i&e" t in.e&t their f)n"& in %n* e8)it* "i.i"en"
#)t)%! f)n"1
BIBLIOGRAPHY
Books:-
;1 N%t%r%(%n %n" 6r"%n “Fin%nci%! Ser.ice& %n" M%r+et&”
<1 Pnith%.%tih P%n"i%n “Sec)rit* An%!*&i& %n" Prtf!i
DM%n%(e#ent”
?1 Preeti Sin(h “In.e&t#entM%n%(e#et“Sec)rit*An%!*&i& %n"
DPrtf!i M%n%(e#ent
1
H1 S1 Ae.in “Sec)rit* An%!*&i& %n" Prtf!i M%n%(e#ent”
PrenticeD 4%!! f DIn"i% PVT LTD (E"itin <==?'
>1 Dn%!" E1 Fi&her- Rn%!" J1 Jr"%n “Sec)rit* An%!*&i& %n"
Prtf!iDM%n%(e#ent”
News papers: -
The Ecn#ic Ti#e&
B)&ine&& !ine
Magazines:- B)&ine&& Wr!"
In"i% T"%*
Web sites:
,,,1#)t)%!f)n"in"i%1c#
,,,1in"i%#%rt1c#
,,,1in"i%inf!ine1c#
,,,1/&ein"i%1c#
,,,1&/hin"i%1c#
doc_679925535.doc