PRESENTATION ON

SUMMER TRAINING
PROJECT REPORT
“INTER FIRM COMPARISON
OF MUTUAL FUND
INDUSTRY”
(2005-2009)

ANKIT CHHABRA
MBA/08/48
 AnandRathi (AR) is a leading full service securities firm
providing the entire gamut of financial services.
 Founded in 1994 by Mr. AnandRathi.
 Today has a pan India presence as well as an international
presence through offices in Dubai and Bangkok.
 AR provides a breadth of financial and advisory services
including wealth management, investment banking,
corporate advisory, brokerage & distribution of equities,
commodities, mutual funds and insurance etc.
 SERVICES
 Call n Trade
 Mutual Fund
 Depository services
 Commodities
 IPOs
 Insurance
 Online Reports
 Bonds
 Trading
 Currency
 Premium securities
 CONCEPT OF MUTUAL FUND
 A mutual fund is a professionally-
managed firm of collective investments
that pools money from many investors
and invest it in stocks, bonds etc.

 Mutual fund have a fund manager who

invests the money on behalf of the
investors by buying/selling stocks, bonds
etc.

 A Mutual Fund is a trust registered with

the Securities and Exchange Board of
India (SEBI).
 The value of each unit of the mutual fund,
known as the net asset value (NAV)

NAV = Net Assets of the scheme………….

Number of units outstanding
Categories of Mutual Fund
RISK Vs. RETURN
METHODS OF MUTUAL FUND

 One time payment

 Systematic Investment Plan (SIP) (or)
Averaging Value
SYSTEMATIC INVESTMENT
PLAN
 Under this a fixed sum is
invested each month on a
fixed date of a month.
 Payment is made through
post dated cheques or
direct debit facilities.
 The investor gets fewer
units when the NAV is
high and more units when
the NAV is low.
 This is called as the
benefit of Rupee Cost
Averaging (RCA).
Load structure

 Entry Load
 Exit load
WORKING OF MUTUAL FUND
ORGANISATION OF MUTUAL
FUND
 OBJECTIVES OF THE STUDY
 To study the Mutual funds industry in detail.
 To study the Investment procedure in Mutual
funds.
 To compare Individual plan with SIP in between
different AMCs .
 To Find out the relationship between MARKET
MOVEMENT and SIP RETURN.
 To find out MARKET RISK of SIP PLAN.
 To suggest better Investment option according
to market behavior.
 RESEARCH
METHODOLOGY
» RESEARCH METHODOLOGY
Research Problem: “INTER FIRM
COMPARISON BETWEEN MUTUAL FUND
INDUSTRY(2005 - 2009)”.
» Research Design: ANALYTICAL
» Sample Size: 8
» Sampling Technique: JUDGEMENTAL
» Data Collection Method: PRIMARY AND
SECONDARY DATA
» Sampling Methods: TABLES , CHARTS,
CORRELATION, BETA, GRAPHS.
 DATA ANALYSIS
&
INTERPRETATION
 EQUITY DIVERSIFIED
PLAN-1 TATA INFRASTRUCTURE FUND(G)
PLAN-2 UTI INFRASTRUCTURE FUND(G)

“PLAN-1” Vs. “PLAN-2”

PLAN-1 PLAN-2
Amt. invested - Rs 48000 Amt. invested - Rs 48000
Amt. Received after 4 years Rs 48629.34 Amt. received- Rs 48477.93
RETURNS Rs 629.34 RETURNS Rs 477.93

CONCLUSION: In SIP, plan-1 exceeds from plan-2 with the amount of Rs 151.41

β(Beta) of PLAN-1=6.01
β(Beta) of PLAN-2=5.06
 EARNING LINKED SAVING
SCHEMES
PLAN-1 Canara Robeco Equity Tax Saver (G)
PLAN-2 Sundaram BNP Paribas Tax Saver (OE) (G)
PLAN-3 HDFC Tax Saver (G)

“PLAN-1” Vs. “PLAN-2” Vs. “PLAN-3”

PLAN-1 PLAN-2 PLAN-3
Amt. Invested -Rs 48000 Amt. Invested- Rs 48000 Amt. Invested -Rs 48000
Amt. received -Rs 52530.08 Amt. received- Rs 51565.17 Amt. received-Rs 44605.77
RETURNS Rs 4530.08 RETURNS Rs 3565.17 RETURNS Rs (3394.23)
CONCLUSION: In SIP, plan-1 exceeds from plan-2 & plan-3 with the amount of Rs
964.9 & Rs.7924.3

CORRELATION BETWEEN NIFTY & PLAN-1 = 0.993673

CORRELATION BETWEEN NIFTY & PLAN-2= 0.986121
CORRELATION BETWEEN NIFTY & PLAN-3 = 0.563035
BETA( MARKET RISK)
β(Beta) of PLAN-1= 3.76
β(Beta) of PLAN-2=4.75
β(Beta) of PLAN-3=1.72
 BALANCED SCHEMES
PLAN-1 Reliance regular savings fund – Balanced option (G)
PLAN-2 HDFC balanced fund (G)
PLAN-3 ICICI pru balanced fund (G)

“PLAN-1” Vs. “PLAN-2” Vs. “PLAN-3”

PLAN-1 PLAN-2 PLAN-3
Amt. Invested -Rs 48000 Amt. Invested- Rs 48000 Amt. Invested -Rs 48000
Amt. received -Rs 53898.83 Amt. received- Rs 49412.37 Amt. received-Rs 45719.15
RETURNS Rs 5898.83 RETURNS Rs 1412.37 RETURNS Rs (2280.85)
CONCLUSION: In SIP, plan-1 exceeds from plan-2 & plan-3 with the amount of Rs
4486.46 & Rs.8179.68

CORRELATION BETWEEN NIFTY & PLAN-1 = 0.660852

CORRELATION BETWEEN NIFTY & PLAN-2= 0.979078
CORRELATION BETWEEN NIFTY & PLAN-3 = 0.807867
BETA( MARKET RISK)
β(Beta) of PLAN-1=2.74
β(Beta) of PLAN-2=4.61
β(Beta) of PLAN-3=0.56
 INTERPRETATION
 Have you ever invested/ interested to invest in mutual
funds?
YES 135

NO 65

Maximum number of persons wants to invest his/her money in

mutual fund.
 Do you know about mutual fund?

Options Percentage

Yes 65

No 35

% OF RESPONDENT

35

Yes
No

65

65%of the people know about the mutual fund, so they want to
invest their money into mutual fund and other 35% don’t know
about mutual fund.
 What option will you choose for investment?
Investment Percentage
Options
Bank 15

Insurance 22

Mutual Fund 55

Stock Market 8

60 55

50

40 Bank
Percentage

Insurance
30
22 Mutual Fund
20 Stock Market
15

10 8

0
Investment Option

The result is that more than 50% people want to invest their money in
mutual fund and other chooses the bank, insurance and stock market.
 Do you think that mutual fund can give more return then
bank deposit?
Respondent Percentage
Answer

Yes 65

No 35

% OF RESPONDENT

35

Yes
No

65

65% of the respondent said that they think that mutual funds
give more return than other investment like bank deposit.
 Influence
60% 56%

50%

40%

30%
23% 21%
20%

10%

0%
BY NAV RETURNS Both

Interpretation:- From the data collected it is clear that most of people look
at the returns that the Mutual funds are providing .They look at the returns
not the current NAV .However, there is some class of people who look at
these parameters and their percentage is 23% and some consider both
factors while investing in funds and their percentage is 21%.
 FINDINGS
 Mutual funds industry is enlarging its size in India. Number of
investors is rising, and number of AMCs is going up. These changes
are likely to happen.

 Private sector is aggressively participating in mutual funds business.

Numbers of schemes are much more than earlier.

 This situation pushes investors back from investment. They wait and
hold cash rather than investing.

 This study found that investors are willing to invest with high rate of
return.
 RECOMMENDATIONS
 Mutual funds offer a lot of benefit which no other single option could offer.
But most of the people are not even aware of what actually a mutual fund is?
They only see it as just another investment option. So the advisors should try
to change their mindsets.

 The advisors should target for more and more young investors. Young
investors as well as persons at the height of their career would like to go for
advisors due to lack of expertise and time.

 Investor can also plan like one mutual fund of diversified equity plan, second
mutual fund of balanced type and third one you can plan of debt type etc. In
this manner the money will get diversified, risk is reduced and the investor
will get excellent profit.

 The advisors may try to highlight some of the value added benefits of MFs
such as tax benefit, rupee cost averaging, and systematic transfer plan,
rebalancing etc. these benefits are not offered by other options
singlehandedly.
Thanks for your co-
orporation