Description
A mutual fund is a form of collective investment. It is a pool of money collected from various investors which is invested according to the stated investment objective
Comparative Analysis on Mutual Fund Scheme
With reference to Sundaram finance Ltd.
Report submitted in partial fulfillment of
POS !RA"#A$ "%PLOMA %& MA&A!$M$&
C$R%F%CA$
This is to certify that ''''' has completed the project titled (Comparative analysis
on the mutual fund scheme) from Sundaram finance Ltd under my guidance
completed the project successfully, for the partial fulfillment of the course: Dissertation in
term= 3
rd
of the post Graduate Diploma in Management- XXXXX specialization !atch
XXXX"#
$%&'()*+G+M+'T
This project in itself is an ac,no-ledgement to the inspiration, dri.e and .alua/le guidance
contri/uted to it /y many indi.iduals# This project -ould ne.er ha.e /een the light of day
-ithout the help and guidance that ha.e /een recei.ed#
0 -ould li,e to e1press my sincere appreciation and than,s to '''' -ho guided me all
throughout the summer training# 0t is under her .alua/le guidance, constant interest and
encouragement 0 ha.e completed this project# 2e de.oted his e.er-precious time from his
/usy schedule and helped in complete understanding of the mutual fund industry in 0ndia#
3inally 0 -ould li,e to than, my professor '''', -hose most .alua/le e1pertise -as
training to me to /e success#
"$CLARA%O&
0, !#4anthosh &umar ,declare in full consciousness that this has /een carried out /y me is
original and in no -ay has /een copied or is reproduction of any prior e1isting -or,#
"ate*
Si+nature
Place*
CO&$&S*,
C-AP$R %
Introduction
Scope of study
Need for study
Objective
Methodology
Data Collection
Sampling
Sampling technique
Tools used
imitations of the study
C-AP$R %%
Industry !ro"le
Company pro"le
C-AP$R %%%
Theory of the study
C-AP$R %.
Data analysis and interpretation
C-AP$R .
#indings$ conclusion$ suggestions
C-AP$R
/
Introduction
Scope of the study
Need for study
Objective
Methodology -
• Data collection and processing
• Sampling technique
• Sam palling technique
• Tools used
imitations of the study
Mutual fund: $n 0ntroduction
$ mutual fund is a form of collecti.e in.estment# 0t is a pool of money collected from .arious
in.estors -hich is in.ested according to the stated in.estment o/jecti.e# The fund manager is the
person -ho in.ests the money in different types of securities according to the predetermined
o/jecti.es# The portfolio of a mutual fund is decided ta,ing into consideration this in.estment
o/jecti.e# Mutual fund in.estors are li,e shareholders and they o-n the fund# The income earned
through these in.estments and the capital appreciation realized /y the scheme is shared /y its unit
holders in proportion to the num/er of units o-ned /y them# The .alue of the in.estments can go
up or do-n, changing the .alue of the in.estors holding# Mutual funds are one of the /est
in.estments e.er created /ecause they are .ery cost efficient and .ery easy to in.est in#
The in.estment in securities through mutual funds is spread across -ide range of
industries and sectors and thus the ris, is reduced# Di.ersification reduces the ris,
/ecause all stoc,s may not mo.e in the same direction at the same time# 5arious fund
houses issue units to the in.estors in accordance -ith the 6uantum of money in.ested /y
them# 0n.estors of mutual funds are ,no-n as unit holders#
0n 0ndia a mutual fund is re6uired to /e registered -ith 4ecurities +1change !oard of
0ndia 74+!08 -hich regulates the securities mar,et#
$D5$'T$G+4 (3 0'5+4T0'G 0' M9T9$* 39'D4:
There are se.eral that can /e attri/uted to the gro-ing popularities and suita/ility of
mutual funds as an in.estment .ehicle especially for retail in.estors#
:rofessional management:
Mutual funds pro.ide the ser.ices of e1perienced and s,illed professionals, /ac,ed /y a
dedicated in.estment research team that analysis the performance and prospects of
companies and selects suita/le in.estments to achie.e the o/jecti.es of the scheme#
Di.ersification:
Mutual funds in.est in a num/er of companies across a /road cross- section of industries
and sectors# This di.ersification reduces the ris, /ecause seldom do all stoc,s decline at
the sane time and in the same proportion# ;ou achie.e this di.ersification through a
mutual fund -ith far less money than you can do on your o-n#
%on.enient administration:
0n.esting in a mutual fund reduces paper-or, and helps you a.oid many pro/lems such
as /ad deli.eries, delayed payment and follo- up -ith /ro,ers and companies# Mutual
funds sa.e your time and ma,e in.esting easy and con.enient#
?"
resources /y reducing the dependence on outside funds# This calls for a mar,et /ased
institution -hich can tap the .ast potential of domestic sa.ings and chanalise them for
profita/le in.estments# Mutual funds are not only /est suited for the purpose /ut also
capa/le of meeting this challenge#
$n ordinary in.estor -ho applies for share in a pu/lic issue of any company is not
assured of any firm allotment# !ut mutual funds -ho su/scri/e to the capital issue made
/y companies get firm allotment of shares# Mutual fund latter sell these shares in the same
mar,et and to the :romoters of the company at a much higher price# 2ence, mutual fund
creates the in.estors confidence#
The phyche of the typical 0ndian in.estor has /een summed up /y Mr# 4# $# Da.e,
%hairman of 9T0, in three -ords@ ;ield, *i6uidity and 4ecurity# The mutual funds, /eing
set up in the pu/lic sector, ha.e gi.en the impression of /eing as safe a conduit for
in.estment as /an, deposits# !esides, the assured returns promised /y them ha.e
in.estors had great appeal for the typical 0ndian in.estor#
$s mutual funds are managed /y professionals, they are considered to ha.e a /etter
,no-ledge of mar,et /eha.iors# !esides, they /ring a certain competence to their jo/#
They also ma1imize gains /y proper selection and timing of in.estment#
$nother important thing is that the di.idends and capital gains are rein.ested
automatically in mutual funds and hence are not fritted a-ay# The automatic rein.estment
feature of a mutual fund is a form of forced sa.ing and can ma,e a /ig difference in the
long run#
The mutual fund operation pro.ides a reasona/le protection to in.estors# !esides,
presently all 4chemes of mutual funds pro.ide ta1 relief under 4ection >A * of the 0ncome
Ta1 $ct and in addition, some schemes pro.ide ta1 relief under 4ection >> of the 0ncome
Ta1 $ct lead to the gro-th of importance of mutual fund in the minds of the in.estors#
$s mutual funds creates a-areness among ur/an and rural middle class people a/out the
/enefits of in.estment in capital mar,et, through profita/le and safe a.enues, mutual fund
could /e a/le to ma,e up a large amount of the surplus funds a.aila/le -ith these people#
The mutual funds attracts foreign capital flo- in the country and secure profita/le
in.estment a.enues a/road for domestic sa.ings through the opening of off shore funds in
.arious foreign in.estors# *astly another nota/le thing is that mutual funds are controlled
and regulated /y 4 + ! 0 and hence are considered safe# Due to all these /enefits the
importance of mutual fund has /een increasing#
SCOP$ OF S#"0:
The study -as carried out for a period of BA days, in -hich the main focus -as to follo-
the performance of the different-different mutual fund companies and assent management
companies# 4ince different companies come out -ith similar themes in the same season, it
/ecomes crucial for the company to constantly perform -ell so as to sur.i.e the
competition and pro.ide ma1imum capital appreciation or return as the case may /e#
(ther than the mar,et the performance of the fund depends on the ,ind of stoc, chosen
/y the fund managers of the company#
The analysis is done on the performance of funds -ith the same theme or sector and
reason out -hy a fund performs /etter than the others in the lot#
'++D 3(< T2+ 4T9D;:
The study first tries to understand the composition of the selected funds -hich determines
the scope of performance for the funds, follo-ed /y use of ratios that are rele.ant in
6uantifying and understanding the ris, and return relationships for each mutual fund
scheme under consideration# Then a comparati.e analysis of the mutual fund schemes is
done to see -hich fund has performed the /est#
This study is significant to the company as it loo,s into the minute details that
differentiate the performances of funds of different companies -ith same theme or sector
under similar mar,et conditions# This -ould help the company to de.elop#
(!C+%T05+4 (3 T2+ 4T9D;:
To understand the 3unctions of an $sset Management %ompany
To understand the performances of .arious schemes using .arious tools to measure the
performances#
To measure and compare the performance of selected mutual fund schemes of different
mutual fund companies and other $sset Management %ompanies#
M$-O"OLO!0*
"ata collection:
The data re6uired for the study may /e collected either from primary sources or from
secondary sources# $ major portion of the data in this study has /een collected through
secondary sources of data#
4econdary data sources include:
? :u/lished material and annual reports of mutual fund companies
? (ther pu/lished material of mutual funds#
? R", 0ndian !an, Mutual 3und 'o. >R", !an, of 0ndia Cun RA", !an, of !aroda
Mutual 3und (ct RE"# *0% esta/lished its mutual fund in Cune DR>R -hile G0% had set up
its mutual fund in Decem/er DRRA
$t the end of DRR3, the mutual fund industry had assets under management of B#3B >D>G?#3E GGH33H#H? >3DHB#GD
D?# CM 3inancial Mutual 3und 3??EGR#?G A 3HAG>>#D3 A
D># C: Morgan Mutual 3und 'O$ 'O$ 'O$ 'O$
DR# &ota, Mahindra Mutual 3und DB?EEHH#HB HGAD>#EE DGHGH33#B3 HEBE>#AB
EA# *0% Mutual 3und RRAGGE#E A RBRE>E#HH A
ED# *otus 0ndia Mutual 3und 3BE3DG#>3 A E>AHRB#D? A
EE# Morgan 4tanley Mutual 3und 3D>ABB#RG A 3DAAAH#3R A
E3# :#B3 A >RRBRH#AB A
3A# Tata Mutual 3und DGA>D>>#>B A D3GH3G>#A? A
3D# Taurus Mutual 3und 3AHG?#E3 A 3ADR>#?H A
3E# 9T0 Mutual 3und GAA?ADB#>? A 3B???E3#3R A
Grand Total GDGD?DBA#BD EDG?BG#33 3>B3>E>H#BD EDGBB?#H
M$# C:Morgan Mutual 3und
DR# &ota, Mahindra Mutual 3und 3#?BGG>>ADE
EA# *0% Mutual 3und E#HA>BABHDH
ED# *otus 0ndia Mutual 3und A#?EBEDE?>H
EE# Morgan 4tanley Mutual 3und A#>AE3EBR>
E3# :HABB?B
3A# Tata Mutual 3und 3#G>DRAGDH
3D# Taurus Mutual 3und A#A?>DH?H>3
3E# 9T0 Mutual 3und R#HD>33RR>>
COMPA&0 PROF%L$
The %ompany -as incorporated in DRHG, -ith the o/ject of financing the purchase of
commercial .ehicles and passenger cars#
The company -as started -ith a paid-up capital of
Mutual 3und '#$
Money Mar,et A#AA
%ash O %all DD#AD
4%2+M+ :+?#HH 3G#HDER
3-(ct-AH EB3A#AH EH#R>?G G3#B>3E EB#H?ABG B?H#3GH ?AH#RRRE BRA#HAE DH#BE?R>GEG EGG#E33R
D-3e/-AB ER?D#HH DE#R>GHG HD#R>GR DR#AAG33 DB>#HR>G 3BD#DBGB EGB#?BEB >#ABDB?A>EH BG#RRAHG
D-Cun-AB ERBE#EH -A#3DER? H3#EB>R E#GBRRG> -A#AR?RGR B#DAABG3 -A#??3AD -
>#G?E?DE3HB
?D#?>B>H
3-(ct-AB 3HBR#B EA#HA3 BD#D3BH DG#?BRHR GEA#3?E> ED>#DGAR 3AE#>EAR 3#>EBR33DHH DG#BGHGE
D-3e/-A? GD3?#E DH#RAARG ?A#BBGH DH#H>G> EHE#>3RR EGE#>>HR EG?#>D3 G#BGED3?HRE ED#HGRGG
D-Cun-A? GER?#AH 3#>B3?EG ?H#?EB? ?#DB3?D DG#RE>3? HD#3D>?G E?#B?>B -
3#??>RHADHE
DG#E>AGB
D-(ct-A? HAB>#RH D?#RB3GR >>#BG?3 D?#ABEDH 3EE#B>BR ERD#DDB> 3AB#GRHB B#DDRG>HG>> 3?#GG>D
D-3e/-A> H3D?#EH G#>R>GH RG#3H3H B#G3BR? E3#RRG>E GD#G3GH> 3D#H3DD>
-G#HAHBRAG>
EA#3ADEH
E-Cun-A> G?3R#B -DA#>B3? >G#3?EB -DA#H?>E DD>#ADRR DDD#>R>3 DDG#RD>G -
ED#HEA>H>3D GB3#DG?3
OAL 75.79866 76.86=78 /77>.668 95=5.5> /7>?#HH
BB#>B
3-(ct-AH EB3A#AH EH#R>?G
>G#3G EB#DGGD>
EB#H?ABG
B>3#HD>E B?R#GDRG DB#AGDGD?? EH?#3E?D
D-3e/-AB ER?D#HH DE#R>GHG
R>#G DB#B?ABE
DR#AAG33
E??#RARH EDB#GBAG B#HB?>H>RE G3#D3B??
D-Cun-AB ERBE#EH -A#3DER?
RB#A> -E#3H??E
E#GBRRG>
H#HH>>B A#?3?>RE -DE#GBAG>3B DHH#EB3?
3-(ct-AB 3HBR#B EA#HA3
DDD#3B DH#RA3GD
DG#?BRHR
EHE#RD>B 3EB#AB?B H#>AABH3>E 33#BG?H>
D-3e/-A? GD3?#E DH#RAARG
DER#ED DB#AERAR
DH#H>G>
EHB#R3DR EHG#>??? H#REB33G>3 3H#DEDGG
D-Cun-A? GER?#AH 3#>B3?EG
D3E#R? E#RARRRD
?#DB3?D
>#GB>AH DD#EG3G -?#DRE?B>HD HD#?3HRE
D-(ct-A? HAB>#RH D?#RB3GR
DH3#RH DH#??>
D?#ABEDH
EG>#RGHD E>3#GE?> H#B?HE3HAG 3E#EA>ER
D-3e/-A> H3D?#EH G#>R>GH
DHR#A> 3#33EEHD
B#G3BR?
DD#DA3>R DB#3EE>B -B#??AHARE? GH#>3R>
E-Cun-A> G?3R#B -DA#>B3?
D3R#R? -DE#ADE>
-DA#H?>E
DGG#3A?R D3A#HA3? -EE#DDHH>3? G>R#ARR
OAL
75.79866
69.=7<
76.86=78
/667.>>9 /7/7.5>/ 69.=7>7778 //8=.=6
CALC#LA%O& OF A4O.$ A4L$
4eta Alfa Standard
"eviation
Coefficient of
determination
Sharpe
ratio 2SR3
reynor
Ratio 2R
1ensen
Ratio 21R3
/.556 ,/.59: //.99= ,/.5/>6
&ote 2% have taAen RF benchmarA 7.: the fiBed deposit of banA interestC the days
duration is = year3
-"FC $Euity Fund D !ro?th
"A$ S@P
C&'
&%F0
R$#R&
2'3
&A. R$#R&
203
'
9
0
9
'0 20,0/3 20,03
9
D-jun-AH EA>?#HH
?D#?>
3-(ct-AH EB3A#AH EH#R>?G
RG#3EG 3D#GA?A>
EB#H?ABG
R>B#GAGH >DB#D>>3 ED#3AG3D3 GH3#>?3>
D-3e/-AB ER?D#HH DE#R>GHG
DDE#G>3 DR#EHD?3
DR#AAG33
3?A#BER EGR#R?GR R#DG>RB>AR >3#?A3BE
D-Cun-AB ERBE#EH -A#3DER?
DDE#3E? -A#D3>BR
E#GBRRG>
A#ADRE3G A#AG3GAH
-
DA#EGDGG?B DAG#>>?E
3-(ct-AB 3HBR#B EA#HA3
D3E#B3G D>#A?>G?
DG#?BRHR
3EB#>3D 3?A#BBE? ?#R?H?A?33 B3#BDDRD
D-3e/-A? GD3?#E DH#RAARG
DHE#GDH DG#RD3R?
DH#H>G>
EEE#GEBB E3?#DGBE G#>DDED3?R E3#DG??>
D-Cun-A? GER?#AH 3#>B3?EG
DBD#RA3 B#EEHDAR
?#DB3?D
3>#?HDR> EG#AHED
-
3#>??BHARE DH#A3BD>
D-(ct-A? HAB>#RH D?#RB3GR
D>G#DBH D3#?HAED
D?#ABEDH
D>R#AB>E EG?#AAD? 3#BG?GG>GB D3#3A3>>
D-3e/-A> H3D?#EH G#>R>GH
DRD#A?H 3#?HEA?
B#G3BR?
DG#A?>A3 D>#3?R33
-
B#3HAB>R>H GA#33DEB
E-Cun-A> G?3R#B -DA#>B3?
DB?#E3? -DE#G?H?
-DA#H?>E
DHH#BG3> D3H#H3EB
-
EE#H?>G>RG HAR#?>>E
OAL
75.79866
78.899
76.86=78 9=5=.6:9 9576.76/ 78.89/< /=568
CALC#LA%O& OF A4O.$ A4L$
4eta Alfa Standard
"eviation
Coefficient of
determination
Sharpe
ratio 2SR3
reynor
Ratio 2R
1ensen
Ratio 21R3
/.5:7 ,5./> /9.55 5.7>9.:?#HH
E>#??BG
3-(ct-AH EB3A#AH EH#R>?G
3>#>AAE 3G#>33GD
EB#H?ABG
DED3#3BB RAH#EER? EG#?3ABG BDD#BAGB
D-3e/-AB ER?D#HH DE#R>GHG
GG#D3G> D3#?G>R
DR#AAG33
D>R#A3EE D?>#HE3E 3#BGBD3> D3#ERG3E
D-Cun-AB ERBE#EH -A#3DER?
G>#?>33 DA#H3EH
E#GBRRG>
DDA#R33? -3#ERB3G A#GER?GH A#D>GB>D
3-(ct-AB 3HBR#B EA#HA3
HH#BD3E DG#AAAGR
DG#?BRHR
DRB#AD3? E>?#AHDR 3#>R??E> DH#DREE>
D-3e/-A? GD3?#E DH#RAARG
B>#DGD3 EE#HE?ED
DH#H>G>
HA?#G?H 3H>#EA3> DE#GEGGH DHG#3BBR
D-Cun-A? GER?#AH 3#>B3?EG
?A#A>RE E#>H>BDR
?#DB3?D
>#D?D?AD DD#AGGRD -?#EGGDG HE#G??H>
D-(ct-A? HAB>#RH D?#RB3GR
??#R3BD DD#DRHHR
D?#ABEDH
DEH#3GD3 EAD#DDD> D#ARE>3D D#DRGE?R
D-3e/-A> H3D?#EH G#>R>GH
>D#B>BD G#>DDB3G
B#G3BR?
E3#DHD>E E3#HBRHH -H#ERDD3 E?#RRBAD
E-Cun-A> G?3R#B -DA#>B3?
?G#HERD ->#?BDHR
-DA#H?>E
?B#?BHG3 RH#D>3EB -D>#>BG3 3HH#>B3B
OAL 75.79866 /5:.6 76.86=78 98:5.9:/ 95:>.>99 /8.69/7/ /9=9./5/< 68.95= 9."
Min # 0n.estment "
Min # 0n.estment 9> = ,5.95>7> ,5.:.>> ,959.>9
&ote 2% have taAen RF benchmarA 7.: the fiBed deposit of banA interestC the days
duration is = year3
Findin+s and Su++estions*
CompanyFs
&ame
4eta Alfa Standard
"eviation
Coefficient
of
determinat
ion
Sharpe
ratio
2SR3
reynor
Ratio 2R
1ensen Ratio
21R3
%C%C% Prudential
4lended plan option,
4,!ro?th
,5.5/97 9.>9> = ,5.95>7> ,5.:.>> ,959.>9
-"FC hi+h interest
fund,!ro?th
,5.5:/7 9.5:/ 6. -A#ADAG3
4irla 4alance Fund D !ro?th
0n.estment 0nformation
3und Type (pen-+nded
0n.estment :lan Gro-th
$sset 4izeG>3ER A#ADB?H3 A#AAAE>A
4undaram !':
:ari/as /alance
fund-Gro-th
A#EH>D3G A#AADGAG A#ADHH>G A#AAAEG3
F%&"%&!S*
3rom the a/o.e ta/le -e can see that 4undaram !': :ari/as /alance fund-Gro-th is
gi.ing the highest a/solute return o.er B months A#EH>D3G" -hile it is highest in term of
fluctuation of returns .ariance=A#AAAEG3"# !0?#HH EA#>D?
3-(ct-AH EB3A#AH EH#R>?G E3#HRDH D3#3E>AH B?H#3GH D??#B3BR 3GB#3BDG B#3HABEE GA#33AG
D-3e/-AB ER?D#HH DE#R>GHG E?#B?D D?#EREEH DB>#HR>G ERR#AED? EEG#H3DR DA#3DG>E DAB#3RHH
D-Cun-AB ERBE#EH -A#3DER? E>#GB>B E#>>EGG -
A#AR?RGR
>#3A>GBD -A#RAEDD -G#ARGRR DB#?B>RE
3-(ct-AB 3HBR#B EA#HA3 ER#BRRR G#3EHDDB GEA#3?E> D>#?ABB3 >>#B??>G -E#BHE3D ?#A3G?H3
D-3e/-A? GD3?#E DH#RAARG 3E#>3R DA#HBRG EHE#>3RR DDD#?DED DB>#AB33 3#HRDRBR DE#RAEEG
D-Cun-A? GER?#AH 3#>B3?EG 3G#HD>E H#DD3G3E DG#RE>3? EB#DG?DR DR#?HB>R -D#>B3RR
3#G?GG??
D-(ct-A? HAB>#RH D?#RB3GR GA#AHHE DB#AGA>D 3EE#B>BR EH?#3A??
E>>#DG>R
R#AB33>B >E#DGGR?
D-3e/-A> H3D?#EH G#>R>GH GD#RHD> G#?3GRBB E3#RRG>E EE#GDRR E3#DR3RR -E#EGEGB
H#AE>B3E
E-Cun-A> G?3R#B -DA#>B3? 3?#D3D? -DD#G>RB DD>#ADRR D3E#ADDE DEG#>DR? -D>#GB?
3GD#A3DB
ssOA
L
75.79866
>9.68
/77>.668
/5:=.9:9
5.55558<
>/:.///:
CALC#LA%O& OF A4O.$ A4L$
4eta Alfa Standard
"eviation
Coefficient of
determination
Sharpe ratio
2SR3
reynor
Ratio 2R
1ensen
Ratio 21R3
5.>5//> 5.7585 6.9>6 66.>:>< /.:5=>
&ote 2% have taAen RF benchmarA 7.: the fiBed deposit of banA interestC the days
duration is = year3
4irla 4alance Fund D !ro?th
"A$ S@P C&'
&%F0
R$#R&
2'3
&A. R$#R&S
203
'9 09 '0 20,0/3 20,0/39
D-jun-AH EA>?#HH
D>#AD
3-(ct-AH EB3A#AH EH#R>?G
EA#RB DB#3?R?R
B?H#3GH
EB>#ER?H GEH#BB>E B#E??AEH 3R#GADAG
D-3e/-AB ER?D#HH DE#R>GHG
E3#A3 R#>?HRHG
DB>#HR>G
R?#H3GG? DE>#E3G> -A#EEB>D A#AHDGGD
D-Cun-AB ERBE#EH -A#3DER?
EE#>G -A#>EHAD
-A#AR?RGR
A#B>ABG3 A#EH>EAE -DA#RE?> DDR#GDBE
3-(ct-AB 3HBR#B EA#HA3
EB#DG DG#GG>3G
GEA#3?E>
EA>#?HGG ERB#E3GE G#3GHH?B D>#>>GA3
D-3e/-A? GD3?#E DH#RAARG
E>#3? >#H3AR>?
EHE#>3RR
?E#????G D3H#BHA? -D#H?D?? E#G?AG?
D-Cun-A? GER?#AH 3#>B3?EG
ER#HR G#3AA3D?
DG#RE>3?
D>#GRE?3 DB#BDHEG -H#>AEGG 33#BB>3G
D-(ct-A? HAB>#RH D?#RB3GR
33#B3 D3#BH3EB
3EE#B>BR
D>B#GDDH EGH#EBAE 3#HHAHAD DE#BABAB
D-3e/-A> H3D?#EH G#>R>GH
3E#GH -3#HA>??
E3#RRG>E
DE#3DDG> -D?#D>?H -D3#BDDH D>H#E?3>
E-Cun-A> G?3R#B -DA#>B3?
3A#RD -G#?GH?B
DD>#ADRR
EE#HEEEB HD#HHBH3 -DG#>G>H EEA#G?>B
O
AL
75.
79866 :6./57/
/77
>.668 66 ,/.=97 />.= 8.6:86 >5.>78 ,5.779
&ote 2% have taAen RF benchmarA 7.: the fiBed deposit of banA interestC the days
duration is = year3
%C%C% Prudential 4alanced D !ro?th
"A$ S@P
C&'
&%F0
R$#R&
2'3
&A. R$#R&S
203
'9 09 '0 20,0/3 20,0/39
D-jun-AH EA>?#HH
EA#3?
3-(ct-AH EB3A#AH EH#R>?G
EH#DB E3#HDGR?
B?H#3GH
HHE#RHG BDD#AR3 3H#>HD>? DE>H#3HB
D-3e/-AB ER?D#HH DE#R>GHG
E>#EB DE#3EDDG
DB>#HR>G
DHD#>DAB DHR#R>GG -H3#D3>E E>E3#BBG
D-Cun-AB ERBE#EH -A#3DER?
E>#? D#HHBR?D
-
A#AR?RGR E#GEGDHR -A#G>?E> D#HHBR?D E#GEGDHR
3-(ct-AB 3HBR#B EA#HA3
3D#GH R#H>D>>E
GEA#3?E>
RD#>DEGH DRB#GH?3 R#H>D>>E RD#>DEGH
D-3e/-A? GD3?#E DH#RAARG
3H#>G D3#RH>BB
EHE#>3RR
DRG#>GG3 EED#RHHR D3#RH>BB DRG#>GG3
D-Cun-A? GER?#AH 3#>B3?EG
3B#GH D#?AEAAR
DG#RE>3?
E#>RB>3G B#H?BAR3 D#?AEAAR E#>RB>3G
D-(ct-A? HAB>#RH D?#RB3GR
GA#3H DA#BRRHR
3EE#B>BR
DDG#G>DE DRE#EADR DA#BRRHR DDG#G>DE
D-3e/-A> H3D?#EH G#>R>GH
GE#DH G#GBARB?
E3#RRG>E
DR#RAAEE ED#>HD>E G#GBARB? DR#RAAEE
E-Cun-A> G?3R#B -DA#>B3?
3B#RH -DE#33BR
DD>#ADRR
DHE#DR>R D3G#AEG3 -DE#33BR DHE#DR>R
OAL 75.79866 >:.8:7=/
/77>.66
8 /96=.=9= /:8=.>:< /9.==>67 8>66 /.>/7 8:./=97 ,/.957
-"FC 4alanced
Fund D !ro?th
/.==6> ,/.=97 />.= 8.6:86 >5.>78 ,5.779
4irla 4alance
Fund D !ro?th
5.>8: ,5.57 6.=6/: 5.7855/9 =.:=9> 8:.75: 5./=7:
S#&"ARAM 4&P
PAR%4AS
4ALA&C$"
F#&"*
5.>5//> 5.7585 6.9>6 66.>:>< /.:5=>
Alpha @ 4eta
The a/o.e ta/le sho-s that 2D3% !alanced 3und - Gro-th fund is comparati.ely more
.olatile -ith a /eta of D#33>B, though compared to the mar,et all the funds are safer to
in.est and they are ha.ing less .olatility also# $nd also the alpha .alues of all the funds
are negati.e e1pected 4undaram !': :ari/as !alance 3und -hich sho-s that the funds
are gi.ing returns not justifying the ris, ta,en# 4undaram !': :ari/as !alance 3und is
sho-ing an alpha of A#RAGA -hich suggests that the fund is -ell di.ersified and 6uite
efficient in reducing the impact of mar,et ris,#
Co,efficient of "etermination
$ll company is ha.ing positi.e co- efficient of determination#
SharpeFs Ratio @ reynorFs Ratio
4harp 0n the a/o.e ta/le, the Treynor=s ratio for 4undaram !': :ari/as !alance 3und is
the highest follo-ed /y 2D3% and then !0
A mutual fund is a form of collective investment. It is a pool of money collected from various investors which is invested according to the stated investment objective
Comparative Analysis on Mutual Fund Scheme
With reference to Sundaram finance Ltd.
Report submitted in partial fulfillment of
POS !RA"#A$ "%PLOMA %& MA&A!$M$&
C$R%F%CA$
This is to certify that ''''' has completed the project titled (Comparative analysis
on the mutual fund scheme) from Sundaram finance Ltd under my guidance
completed the project successfully, for the partial fulfillment of the course: Dissertation in
term= 3
rd
of the post Graduate Diploma in Management- XXXXX specialization !atch
XXXX"#
$%&'()*+G+M+'T
This project in itself is an ac,no-ledgement to the inspiration, dri.e and .alua/le guidance
contri/uted to it /y many indi.iduals# This project -ould ne.er ha.e /een the light of day
-ithout the help and guidance that ha.e /een recei.ed#
0 -ould li,e to e1press my sincere appreciation and than,s to '''' -ho guided me all
throughout the summer training# 0t is under her .alua/le guidance, constant interest and
encouragement 0 ha.e completed this project# 2e de.oted his e.er-precious time from his
/usy schedule and helped in complete understanding of the mutual fund industry in 0ndia#
3inally 0 -ould li,e to than, my professor '''', -hose most .alua/le e1pertise -as
training to me to /e success#
"$CLARA%O&
0, !#4anthosh &umar ,declare in full consciousness that this has /een carried out /y me is
original and in no -ay has /een copied or is reproduction of any prior e1isting -or,#
"ate*
Si+nature
Place*
CO&$&S*,
C-AP$R %
Introduction
Scope of study
Need for study
Objective
Methodology
Data Collection
Sampling
Sampling technique
Tools used
imitations of the study
C-AP$R %%
Industry !ro"le
Company pro"le
C-AP$R %%%
Theory of the study
C-AP$R %.
Data analysis and interpretation
C-AP$R .
#indings$ conclusion$ suggestions
C-AP$R
/
Introduction
Scope of the study
Need for study
Objective
Methodology -
• Data collection and processing
• Sampling technique
• Sam palling technique
• Tools used
imitations of the study
Mutual fund: $n 0ntroduction
$ mutual fund is a form of collecti.e in.estment# 0t is a pool of money collected from .arious
in.estors -hich is in.ested according to the stated in.estment o/jecti.e# The fund manager is the
person -ho in.ests the money in different types of securities according to the predetermined
o/jecti.es# The portfolio of a mutual fund is decided ta,ing into consideration this in.estment
o/jecti.e# Mutual fund in.estors are li,e shareholders and they o-n the fund# The income earned
through these in.estments and the capital appreciation realized /y the scheme is shared /y its unit
holders in proportion to the num/er of units o-ned /y them# The .alue of the in.estments can go
up or do-n, changing the .alue of the in.estors holding# Mutual funds are one of the /est
in.estments e.er created /ecause they are .ery cost efficient and .ery easy to in.est in#
The in.estment in securities through mutual funds is spread across -ide range of
industries and sectors and thus the ris, is reduced# Di.ersification reduces the ris,
/ecause all stoc,s may not mo.e in the same direction at the same time# 5arious fund
houses issue units to the in.estors in accordance -ith the 6uantum of money in.ested /y
them# 0n.estors of mutual funds are ,no-n as unit holders#
0n 0ndia a mutual fund is re6uired to /e registered -ith 4ecurities +1change !oard of
0ndia 74+!08 -hich regulates the securities mar,et#
$D5$'T$G+4 (3 0'5+4T0'G 0' M9T9$* 39'D4:
There are se.eral that can /e attri/uted to the gro-ing popularities and suita/ility of
mutual funds as an in.estment .ehicle especially for retail in.estors#
:rofessional management:
Mutual funds pro.ide the ser.ices of e1perienced and s,illed professionals, /ac,ed /y a
dedicated in.estment research team that analysis the performance and prospects of
companies and selects suita/le in.estments to achie.e the o/jecti.es of the scheme#
Di.ersification:
Mutual funds in.est in a num/er of companies across a /road cross- section of industries
and sectors# This di.ersification reduces the ris, /ecause seldom do all stoc,s decline at
the sane time and in the same proportion# ;ou achie.e this di.ersification through a
mutual fund -ith far less money than you can do on your o-n#
%on.enient administration:
0n.esting in a mutual fund reduces paper-or, and helps you a.oid many pro/lems such
as /ad deli.eries, delayed payment and follo- up -ith /ro,ers and companies# Mutual
funds sa.e your time and ma,e in.esting easy and con.enient#
?"
resources /y reducing the dependence on outside funds# This calls for a mar,et /ased
institution -hich can tap the .ast potential of domestic sa.ings and chanalise them for
profita/le in.estments# Mutual funds are not only /est suited for the purpose /ut also
capa/le of meeting this challenge#
$n ordinary in.estor -ho applies for share in a pu/lic issue of any company is not
assured of any firm allotment# !ut mutual funds -ho su/scri/e to the capital issue made
/y companies get firm allotment of shares# Mutual fund latter sell these shares in the same
mar,et and to the :romoters of the company at a much higher price# 2ence, mutual fund
creates the in.estors confidence#
The phyche of the typical 0ndian in.estor has /een summed up /y Mr# 4# $# Da.e,
%hairman of 9T0, in three -ords@ ;ield, *i6uidity and 4ecurity# The mutual funds, /eing
set up in the pu/lic sector, ha.e gi.en the impression of /eing as safe a conduit for
in.estment as /an, deposits# !esides, the assured returns promised /y them ha.e
in.estors had great appeal for the typical 0ndian in.estor#
$s mutual funds are managed /y professionals, they are considered to ha.e a /etter
,no-ledge of mar,et /eha.iors# !esides, they /ring a certain competence to their jo/#
They also ma1imize gains /y proper selection and timing of in.estment#
$nother important thing is that the di.idends and capital gains are rein.ested
automatically in mutual funds and hence are not fritted a-ay# The automatic rein.estment
feature of a mutual fund is a form of forced sa.ing and can ma,e a /ig difference in the
long run#
The mutual fund operation pro.ides a reasona/le protection to in.estors# !esides,
presently all 4chemes of mutual funds pro.ide ta1 relief under 4ection >A * of the 0ncome
Ta1 $ct and in addition, some schemes pro.ide ta1 relief under 4ection >> of the 0ncome
Ta1 $ct lead to the gro-th of importance of mutual fund in the minds of the in.estors#
$s mutual funds creates a-areness among ur/an and rural middle class people a/out the
/enefits of in.estment in capital mar,et, through profita/le and safe a.enues, mutual fund
could /e a/le to ma,e up a large amount of the surplus funds a.aila/le -ith these people#
The mutual funds attracts foreign capital flo- in the country and secure profita/le
in.estment a.enues a/road for domestic sa.ings through the opening of off shore funds in
.arious foreign in.estors# *astly another nota/le thing is that mutual funds are controlled
and regulated /y 4 + ! 0 and hence are considered safe# Due to all these /enefits the
importance of mutual fund has /een increasing#
SCOP$ OF S#"0:
The study -as carried out for a period of BA days, in -hich the main focus -as to follo-
the performance of the different-different mutual fund companies and assent management
companies# 4ince different companies come out -ith similar themes in the same season, it
/ecomes crucial for the company to constantly perform -ell so as to sur.i.e the
competition and pro.ide ma1imum capital appreciation or return as the case may /e#
(ther than the mar,et the performance of the fund depends on the ,ind of stoc, chosen
/y the fund managers of the company#
The analysis is done on the performance of funds -ith the same theme or sector and
reason out -hy a fund performs /etter than the others in the lot#
'++D 3(< T2+ 4T9D;:
The study first tries to understand the composition of the selected funds -hich determines
the scope of performance for the funds, follo-ed /y use of ratios that are rele.ant in
6uantifying and understanding the ris, and return relationships for each mutual fund
scheme under consideration# Then a comparati.e analysis of the mutual fund schemes is
done to see -hich fund has performed the /est#
This study is significant to the company as it loo,s into the minute details that
differentiate the performances of funds of different companies -ith same theme or sector
under similar mar,et conditions# This -ould help the company to de.elop#
(!C+%T05+4 (3 T2+ 4T9D;:
To understand the 3unctions of an $sset Management %ompany
To understand the performances of .arious schemes using .arious tools to measure the
performances#
To measure and compare the performance of selected mutual fund schemes of different
mutual fund companies and other $sset Management %ompanies#
M$-O"OLO!0*
"ata collection:
The data re6uired for the study may /e collected either from primary sources or from
secondary sources# $ major portion of the data in this study has /een collected through
secondary sources of data#
4econdary data sources include:
? :u/lished material and annual reports of mutual fund companies
? (ther pu/lished material of mutual funds#
? R", 0ndian !an, Mutual 3und 'o. >R", !an, of 0ndia Cun RA", !an, of !aroda
Mutual 3und (ct RE"# *0% esta/lished its mutual fund in Cune DR>R -hile G0% had set up
its mutual fund in Decem/er DRRA
$t the end of DRR3, the mutual fund industry had assets under management of B#3B >D>G?#3E GGH33H#H? >3DHB#GD
D?# CM 3inancial Mutual 3und 3??EGR#?G A 3HAG>>#D3 A
D># C: Morgan Mutual 3und 'O$ 'O$ 'O$ 'O$
DR# &ota, Mahindra Mutual 3und DB?EEHH#HB HGAD>#EE DGHGH33#B3 HEBE>#AB
EA# *0% Mutual 3und RRAGGE#E A RBRE>E#HH A
ED# *otus 0ndia Mutual 3und 3BE3DG#>3 A E>AHRB#D? A
EE# Morgan 4tanley Mutual 3und 3D>ABB#RG A 3DAAAH#3R A
E3# :#B3 A >RRBRH#AB A
3A# Tata Mutual 3und DGA>D>>#>B A D3GH3G>#A? A
3D# Taurus Mutual 3und 3AHG?#E3 A 3ADR>#?H A
3E# 9T0 Mutual 3und GAA?ADB#>? A 3B???E3#3R A
Grand Total GDGD?DBA#BD EDG?BG#33 3>B3>E>H#BD EDGBB?#H
M$# C:Morgan Mutual 3und
DR# &ota, Mahindra Mutual 3und 3#?BGG>>ADE
EA# *0% Mutual 3und E#HA>BABHDH
ED# *otus 0ndia Mutual 3und A#?EBEDE?>H
EE# Morgan 4tanley Mutual 3und A#>AE3EBR>
E3# :HABB?B
3A# Tata Mutual 3und 3#G>DRAGDH
3D# Taurus Mutual 3und A#A?>DH?H>3
3E# 9T0 Mutual 3und R#HD>33RR>>
COMPA&0 PROF%L$
The %ompany -as incorporated in DRHG, -ith the o/ject of financing the purchase of
commercial .ehicles and passenger cars#
The company -as started -ith a paid-up capital of
Mutual 3und '#$
Money Mar,et A#AA
%ash O %all DD#AD
4%2+M+ :+?#HH 3G#HDER
3-(ct-AH EB3A#AH EH#R>?G G3#B>3E EB#H?ABG B?H#3GH ?AH#RRRE BRA#HAE DH#BE?R>GEG EGG#E33R
D-3e/-AB ER?D#HH DE#R>GHG HD#R>GR DR#AAG33 DB>#HR>G 3BD#DBGB EGB#?BEB >#ABDB?A>EH BG#RRAHG
D-Cun-AB ERBE#EH -A#3DER? H3#EB>R E#GBRRG> -A#AR?RGR B#DAABG3 -A#??3AD -
>#G?E?DE3HB
?D#?>B>H
3-(ct-AB 3HBR#B EA#HA3 BD#D3BH DG#?BRHR GEA#3?E> ED>#DGAR 3AE#>EAR 3#>EBR33DHH DG#BGHGE
D-3e/-A? GD3?#E DH#RAARG ?A#BBGH DH#H>G> EHE#>3RR EGE#>>HR EG?#>D3 G#BGED3?HRE ED#HGRGG
D-Cun-A? GER?#AH 3#>B3?EG ?H#?EB? ?#DB3?D DG#RE>3? HD#3D>?G E?#B?>B -
3#??>RHADHE
DG#E>AGB
D-(ct-A? HAB>#RH D?#RB3GR >>#BG?3 D?#ABEDH 3EE#B>BR ERD#DDB> 3AB#GRHB B#DDRG>HG>> 3?#GG>D
D-3e/-A> H3D?#EH G#>R>GH RG#3H3H B#G3BR? E3#RRG>E GD#G3GH> 3D#H3DD>
-G#HAHBRAG>
EA#3ADEH
E-Cun-A> G?3R#B -DA#>B3? >G#3?EB -DA#H?>E DD>#ADRR DDD#>R>3 DDG#RD>G -
ED#HEA>H>3D GB3#DG?3
OAL 75.79866 76.86=78 /77>.668 95=5.5> /7>?#HH
BB#>B
3-(ct-AH EB3A#AH EH#R>?G
>G#3G EB#DGGD>
EB#H?ABG
B>3#HD>E B?R#GDRG DB#AGDGD?? EH?#3E?D
D-3e/-AB ER?D#HH DE#R>GHG
R>#G DB#B?ABE
DR#AAG33
E??#RARH EDB#GBAG B#HB?>H>RE G3#D3B??
D-Cun-AB ERBE#EH -A#3DER?
RB#A> -E#3H??E
E#GBRRG>
H#HH>>B A#?3?>RE -DE#GBAG>3B DHH#EB3?
3-(ct-AB 3HBR#B EA#HA3
DDD#3B DH#RA3GD
DG#?BRHR
EHE#RD>B 3EB#AB?B H#>AABH3>E 33#BG?H>
D-3e/-A? GD3?#E DH#RAARG
DER#ED DB#AERAR
DH#H>G>
EHB#R3DR EHG#>??? H#REB33G>3 3H#DEDGG
D-Cun-A? GER?#AH 3#>B3?EG
D3E#R? E#RARRRD
?#DB3?D
>#GB>AH DD#EG3G -?#DRE?B>HD HD#?3HRE
D-(ct-A? HAB>#RH D?#RB3GR
DH3#RH DH#??>
D?#ABEDH
EG>#RGHD E>3#GE?> H#B?HE3HAG 3E#EA>ER
D-3e/-A> H3D?#EH G#>R>GH
DHR#A> 3#33EEHD
B#G3BR?
DD#DA3>R DB#3EE>B -B#??AHARE? GH#>3R>
E-Cun-A> G?3R#B -DA#>B3?
D3R#R? -DE#ADE>
-DA#H?>E
DGG#3A?R D3A#HA3? -EE#DDHH>3? G>R#ARR
OAL
75.79866
69.=7<
76.86=78
/667.>>9 /7/7.5>/ 69.=7>7778 //8=.=6
CALC#LA%O& OF A4O.$ A4L$
4eta Alfa Standard
"eviation
Coefficient of
determination
Sharpe
ratio 2SR3
reynor
Ratio 2R
1ensen
Ratio 21R3
/.556 ,/.59: //.99= ,/.5/>6
&ote 2% have taAen RF benchmarA 7.: the fiBed deposit of banA interestC the days
duration is = year3
-"FC $Euity Fund D !ro?th
"A$ S@P
C&'
&%F0
R$#R&
2'3
&A. R$#R&
203
'
9
0
9
'0 20,0/3 20,03
9
D-jun-AH EA>?#HH
?D#?>
3-(ct-AH EB3A#AH EH#R>?G
RG#3EG 3D#GA?A>
EB#H?ABG
R>B#GAGH >DB#D>>3 ED#3AG3D3 GH3#>?3>
D-3e/-AB ER?D#HH DE#R>GHG
DDE#G>3 DR#EHD?3
DR#AAG33
3?A#BER EGR#R?GR R#DG>RB>AR >3#?A3BE
D-Cun-AB ERBE#EH -A#3DER?
DDE#3E? -A#D3>BR
E#GBRRG>
A#ADRE3G A#AG3GAH
-
DA#EGDGG?B DAG#>>?E
3-(ct-AB 3HBR#B EA#HA3
D3E#B3G D>#A?>G?
DG#?BRHR
3EB#>3D 3?A#BBE? ?#R?H?A?33 B3#BDDRD
D-3e/-A? GD3?#E DH#RAARG
DHE#GDH DG#RD3R?
DH#H>G>
EEE#GEBB E3?#DGBE G#>DDED3?R E3#DG??>
D-Cun-A? GER?#AH 3#>B3?EG
DBD#RA3 B#EEHDAR
?#DB3?D
3>#?HDR> EG#AHED
-
3#>??BHARE DH#A3BD>
D-(ct-A? HAB>#RH D?#RB3GR
D>G#DBH D3#?HAED
D?#ABEDH
D>R#AB>E EG?#AAD? 3#BG?GG>GB D3#3A3>>
D-3e/-A> H3D?#EH G#>R>GH
DRD#A?H 3#?HEA?
B#G3BR?
DG#A?>A3 D>#3?R33
-
B#3HAB>R>H GA#33DEB
E-Cun-A> G?3R#B -DA#>B3?
DB?#E3? -DE#G?H?
-DA#H?>E
DHH#BG3> D3H#H3EB
-
EE#H?>G>RG HAR#?>>E
OAL
75.79866
78.899
76.86=78 9=5=.6:9 9576.76/ 78.89/< /=568
CALC#LA%O& OF A4O.$ A4L$
4eta Alfa Standard
"eviation
Coefficient of
determination
Sharpe
ratio 2SR3
reynor
Ratio 2R
1ensen
Ratio 21R3
/.5:7 ,5./> /9.55 5.7>9.:?#HH
E>#??BG
3-(ct-AH EB3A#AH EH#R>?G
3>#>AAE 3G#>33GD
EB#H?ABG
DED3#3BB RAH#EER? EG#?3ABG BDD#BAGB
D-3e/-AB ER?D#HH DE#R>GHG
GG#D3G> D3#?G>R
DR#AAG33
D>R#A3EE D?>#HE3E 3#BGBD3> D3#ERG3E
D-Cun-AB ERBE#EH -A#3DER?
G>#?>33 DA#H3EH
E#GBRRG>
DDA#R33? -3#ERB3G A#GER?GH A#D>GB>D
3-(ct-AB 3HBR#B EA#HA3
HH#BD3E DG#AAAGR
DG#?BRHR
DRB#AD3? E>?#AHDR 3#>R??E> DH#DREE>
D-3e/-A? GD3?#E DH#RAARG
B>#DGD3 EE#HE?ED
DH#H>G>
HA?#G?H 3H>#EA3> DE#GEGGH DHG#3BBR
D-Cun-A? GER?#AH 3#>B3?EG
?A#A>RE E#>H>BDR
?#DB3?D
>#D?D?AD DD#AGGRD -?#EGGDG HE#G??H>
D-(ct-A? HAB>#RH D?#RB3GR
??#R3BD DD#DRHHR
D?#ABEDH
DEH#3GD3 EAD#DDD> D#ARE>3D D#DRGE?R
D-3e/-A> H3D?#EH G#>R>GH
>D#B>BD G#>DDB3G
B#G3BR?
E3#DHD>E E3#HBRHH -H#ERDD3 E?#RRBAD
E-Cun-A> G?3R#B -DA#>B3?
?G#HERD ->#?BDHR
-DA#H?>E
?B#?BHG3 RH#D>3EB -D>#>BG3 3HH#>B3B
OAL 75.79866 /5:.6 76.86=78 98:5.9:/ 95:>.>99 /8.69/7/ /9=9./5/< 68.95= 9."
Min # 0n.estment "
Min # 0n.estment 9> = ,5.95>7> ,5.:.>> ,959.>9
&ote 2% have taAen RF benchmarA 7.: the fiBed deposit of banA interestC the days
duration is = year3
Findin+s and Su++estions*
CompanyFs
&ame
4eta Alfa Standard
"eviation
Coefficient
of
determinat
ion
Sharpe
ratio
2SR3
reynor
Ratio 2R
1ensen Ratio
21R3
%C%C% Prudential
4lended plan option,
4,!ro?th
,5.5/97 9.>9> = ,5.95>7> ,5.:.>> ,959.>9
-"FC hi+h interest
fund,!ro?th
,5.5:/7 9.5:/ 6. -A#ADAG3
4irla 4alance Fund D !ro?th
0n.estment 0nformation
3und Type (pen-+nded
0n.estment :lan Gro-th
$sset 4izeG>3ER A#ADB?H3 A#AAAE>A
4undaram !':
:ari/as /alance
fund-Gro-th
A#EH>D3G A#AADGAG A#ADHH>G A#AAAEG3
F%&"%&!S*
3rom the a/o.e ta/le -e can see that 4undaram !': :ari/as /alance fund-Gro-th is
gi.ing the highest a/solute return o.er B months A#EH>D3G" -hile it is highest in term of
fluctuation of returns .ariance=A#AAAEG3"# !0?#HH EA#>D?
3-(ct-AH EB3A#AH EH#R>?G E3#HRDH D3#3E>AH B?H#3GH D??#B3BR 3GB#3BDG B#3HABEE GA#33AG
D-3e/-AB ER?D#HH DE#R>GHG E?#B?D D?#EREEH DB>#HR>G ERR#AED? EEG#H3DR DA#3DG>E DAB#3RHH
D-Cun-AB ERBE#EH -A#3DER? E>#GB>B E#>>EGG -
A#AR?RGR
>#3A>GBD -A#RAEDD -G#ARGRR DB#?B>RE
3-(ct-AB 3HBR#B EA#HA3 ER#BRRR G#3EHDDB GEA#3?E> D>#?ABB3 >>#B??>G -E#BHE3D ?#A3G?H3
D-3e/-A? GD3?#E DH#RAARG 3E#>3R DA#HBRG EHE#>3RR DDD#?DED DB>#AB33 3#HRDRBR DE#RAEEG
D-Cun-A? GER?#AH 3#>B3?EG 3G#HD>E H#DD3G3E DG#RE>3? EB#DG?DR DR#?HB>R -D#>B3RR
3#G?GG??
D-(ct-A? HAB>#RH D?#RB3GR GA#AHHE DB#AGA>D 3EE#B>BR EH?#3A??
E>>#DG>R
R#AB33>B >E#DGGR?
D-3e/-A> H3D?#EH G#>R>GH GD#RHD> G#?3GRBB E3#RRG>E EE#GDRR E3#DR3RR -E#EGEGB
H#AE>B3E
E-Cun-A> G?3R#B -DA#>B3? 3?#D3D? -DD#G>RB DD>#ADRR D3E#ADDE DEG#>DR? -D>#GB?
3GD#A3DB
ssOA
L
75.79866
>9.68
/77>.668
/5:=.9:9
5.55558<
>/:.///:
CALC#LA%O& OF A4O.$ A4L$
4eta Alfa Standard
"eviation
Coefficient of
determination
Sharpe ratio
2SR3
reynor
Ratio 2R
1ensen
Ratio 21R3
5.>5//> 5.7585 6.9>6 66.>:>< /.:5=>
&ote 2% have taAen RF benchmarA 7.: the fiBed deposit of banA interestC the days
duration is = year3
4irla 4alance Fund D !ro?th
"A$ S@P C&'
&%F0
R$#R&
2'3
&A. R$#R&S
203
'9 09 '0 20,0/3 20,0/39
D-jun-AH EA>?#HH
D>#AD
3-(ct-AH EB3A#AH EH#R>?G
EA#RB DB#3?R?R
B?H#3GH
EB>#ER?H GEH#BB>E B#E??AEH 3R#GADAG
D-3e/-AB ER?D#HH DE#R>GHG
E3#A3 R#>?HRHG
DB>#HR>G
R?#H3GG? DE>#E3G> -A#EEB>D A#AHDGGD
D-Cun-AB ERBE#EH -A#3DER?
EE#>G -A#>EHAD
-A#AR?RGR
A#B>ABG3 A#EH>EAE -DA#RE?> DDR#GDBE
3-(ct-AB 3HBR#B EA#HA3
EB#DG DG#GG>3G
GEA#3?E>
EA>#?HGG ERB#E3GE G#3GHH?B D>#>>GA3
D-3e/-A? GD3?#E DH#RAARG
E>#3? >#H3AR>?
EHE#>3RR
?E#????G D3H#BHA? -D#H?D?? E#G?AG?
D-Cun-A? GER?#AH 3#>B3?EG
ER#HR G#3AA3D?
DG#RE>3?
D>#GRE?3 DB#BDHEG -H#>AEGG 33#BB>3G
D-(ct-A? HAB>#RH D?#RB3GR
33#B3 D3#BH3EB
3EE#B>BR
D>B#GDDH EGH#EBAE 3#HHAHAD DE#BABAB
D-3e/-A> H3D?#EH G#>R>GH
3E#GH -3#HA>??
E3#RRG>E
DE#3DDG> -D?#D>?H -D3#BDDH D>H#E?3>
E-Cun-A> G?3R#B -DA#>B3?
3A#RD -G#?GH?B
DD>#ADRR
EE#HEEEB HD#HHBH3 -DG#>G>H EEA#G?>B
O
AL
75.
79866 :6./57/
/77
>.668 66 ,/.=97 />.= 8.6:86 >5.>78 ,5.779
&ote 2% have taAen RF benchmarA 7.: the fiBed deposit of banA interestC the days
duration is = year3
%C%C% Prudential 4alanced D !ro?th
"A$ S@P
C&'
&%F0
R$#R&
2'3
&A. R$#R&S
203
'9 09 '0 20,0/3 20,0/39
D-jun-AH EA>?#HH
EA#3?
3-(ct-AH EB3A#AH EH#R>?G
EH#DB E3#HDGR?
B?H#3GH
HHE#RHG BDD#AR3 3H#>HD>? DE>H#3HB
D-3e/-AB ER?D#HH DE#R>GHG
E>#EB DE#3EDDG
DB>#HR>G
DHD#>DAB DHR#R>GG -H3#D3>E E>E3#BBG
D-Cun-AB ERBE#EH -A#3DER?
E>#? D#HHBR?D
-
A#AR?RGR E#GEGDHR -A#G>?E> D#HHBR?D E#GEGDHR
3-(ct-AB 3HBR#B EA#HA3
3D#GH R#H>D>>E
GEA#3?E>
RD#>DEGH DRB#GH?3 R#H>D>>E RD#>DEGH
D-3e/-A? GD3?#E DH#RAARG
3H#>G D3#RH>BB
EHE#>3RR
DRG#>GG3 EED#RHHR D3#RH>BB DRG#>GG3
D-Cun-A? GER?#AH 3#>B3?EG
3B#GH D#?AEAAR
DG#RE>3?
E#>RB>3G B#H?BAR3 D#?AEAAR E#>RB>3G
D-(ct-A? HAB>#RH D?#RB3GR
GA#3H DA#BRRHR
3EE#B>BR
DDG#G>DE DRE#EADR DA#BRRHR DDG#G>DE
D-3e/-A> H3D?#EH G#>R>GH
GE#DH G#GBARB?
E3#RRG>E
DR#RAAEE ED#>HD>E G#GBARB? DR#RAAEE
E-Cun-A> G?3R#B -DA#>B3?
3B#RH -DE#33BR
DD>#ADRR
DHE#DR>R D3G#AEG3 -DE#33BR DHE#DR>R
OAL 75.79866 >:.8:7=/
/77>.66
8 /96=.=9= /:8=.>:< /9.==>67 8>66 /.>/7 8:./=97 ,/.957
-"FC 4alanced
Fund D !ro?th
/.==6> ,/.=97 />.= 8.6:86 >5.>78 ,5.779
4irla 4alance
Fund D !ro?th
5.>8: ,5.57 6.=6/: 5.7855/9 =.:=9> 8:.75: 5./=7:
S#&"ARAM 4&P
PAR%4AS
4ALA&C$"
F#&"*
5.>5//> 5.7585 6.9>6 66.>:>< /.:5=>
Alpha @ 4eta
The a/o.e ta/le sho-s that 2D3% !alanced 3und - Gro-th fund is comparati.ely more
.olatile -ith a /eta of D#33>B, though compared to the mar,et all the funds are safer to
in.est and they are ha.ing less .olatility also# $nd also the alpha .alues of all the funds
are negati.e e1pected 4undaram !': :ari/as !alance 3und -hich sho-s that the funds
are gi.ing returns not justifying the ris, ta,en# 4undaram !': :ari/as !alance 3und is
sho-ing an alpha of A#RAGA -hich suggests that the fund is -ell di.ersified and 6uite
efficient in reducing the impact of mar,et ris,#
Co,efficient of "etermination
$ll company is ha.ing positi.e co- efficient of determination#
SharpeFs Ratio @ reynorFs Ratio
4harp 0n the a/o.e ta/le, the Treynor=s ratio for 4undaram !': :ari/as !alance 3und is
the highest follo-ed /y 2D3% and then !0