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A Study of Performance of Mutual Fund Schemes

1. 1 SR. NO CONTENTS PG. NO.1. CONCEPTUAL OVERVIEW: 52. RESEARCH METHODOLOGY: 2.1
Objectives 8 2.2 Methodology 8 2.3 Significance 8 2.4 Limitations 93. THEORETICAL BACKGROUND:
3.1 Mutual Fund 11 3.2 History of Mutual Fund 13 3.3 Types of Mutual Fund 16 CASE STUDY4 22 DATA
ANALYSIS5. 43 FINDINGS6. 64 REFERENCES. 70Get more projects at MBAeNotes
2. 2 CHAPTER 1 CONCEPTUAL OVERVIEW
3. 3 CONCEPTUAL OVERVIEW 1. BASICS OF MUTUAL FUND A mutual fund is a financial intermediary
that allows a group of investors to pool their money together with a predetermined investment objective.
The mutual fund will have a fund manager who is responsible for investing the gathered money into
specific securities (stocks or bonds). When investors invest in a mutual fund, they are buying units or
portions of the mutual fund and thus on investing becomes a unit holder of the fund.Mutual funds are
considered as one of the best available investments as compare to others they are very cost efficient and
also easy to invest in, thus by pooling money together in a mutual fund, investors can purchase stocks or
bonds with much lower trading costs than if they tried to do it on their own. But the biggest advantage to
mutual funds is diversification, by minimizing risk & maximizing returns.Mutual funds are set up to buy
many stocks. Beyond that, investors can diversify even more by purchasing different kinds of stocks
which helps to spreading out investors money across different types of investments and hence,
reduces risk tremendously up to certain extent.It could take you weeks to buy all these investments, but if
you purchased a few mutual funds you could be done in a few hours because mutual funds automatically
diversify in a predetermined category of investments.
4. 4 CHAPTER 2 RESEARCH METHODOLOGY
5. 52.1) OBJECTIVES:Objective of this study is to analyze the Past Performance of the various Mutual
Funds Schemes on the Basis of there Historical NAVs and application of statisticaltools on the same.
This helps in understanding the performance of mutual fund schemes in terms of both risk as well as
return involved.2.2 METHODOLOGY:A Sample of 5Schemes each from 5different types of Funds is
being taken.Types of Funds taken are follows: Diversified funds Large cap funds Mid cap funds Small cap
funds Sector funds Analysis has been done by using following Statistical tools: Sharpe Ratio: It indicates
the Risk-Return Performance of Portfolio. Beta: It measures the volatility, or systematic risk, of a security
or a portfolio in comparison to the market as a whole. Standard Deviation: It shows the historical volatility.
Annualized Return: It indicate the return on return over the period of times.2.3 SIGNIFICANCE: Able to
learn the various analytical tools of Mutual Fund like Beta, Standard Deviation, Compounded annual
growth rate (CAGR) and Sharp Ratio. Get complete overview of Mutual Fund industries in India. Able to
know the past performance of various Mutual Funds Schemes.
6. 6 Investors are able to know the investment pattern and market trend of investing in various sectors.2.4
LIMITATIONS: Samples sizes is limited factor, only last fives years of Data has been taken. Past
performance may not guarantee the future return. Micro level data have been taken in analysis; Macro
level data may affect the returns.
7. 7 CHAPTER 3 THEORETICAL BACKGROUND
8. 8 3.1 Mutual Fund:A Mutual Fund is kinds of trust that pools the savings of a number of
investors,investors who share a common financial goal. The money thus collected is then invested in
capital market instruments such as shares, debentures and other securities. The income earned through
these investments and the capital appreciation realized is shared by its unit holders in proportion to the
number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common
man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a
relatively low cost.3.1.1 Advantages of Mutual Fund:a) Professional Management - The basic advantage
of funds is that, they are professionally managed by well qualified professional. Investors purchase funds
because they do not have the time or the expertise to manage their own portfolio.b) Diversification -
Purchasing units in a mutual fund instead of buying individual stocks or bonds, the investors risk is spread
out and minimized up to certain extent.The idea behind diversification is to invest in a large number of
assets so that a loss in any particular investment is minimized by gains in others.c) Economies of Scale -
Mutual fund buy and sell large amounts of securities at a time, thus help to reducing transaction costs,
and help to bring down the average cost of the unit for their investors.d)Liquidity - Just like an individual
stock, mutual fund also allows investors to liquidate their holdings as and when they want.
9. 9e) Simplicity - Investments in mutual fund is considered to be easy, compare to other
available instruments in the market, and the minimum investment is small. Most AMC also have automatic
purchase plans whereby as little as Rs. 2000, where SIP start with just Rs.50 per month basis.3.1.2
Disadvantages of Mutual Fund:a) Professional Management- Some funds dont perform according to the
market,as their management is not dynamic enough to explore the available opportunity in the market,
thus investor loose there money.b) Costs The biggest source of AMC income is generally from the entry
& exit load which they charge from investors, at the time of purchase. The mutual fund industries are thus
charging extra cost under layers of jargon.c) Dilution - Because funds have small holdings across
different companies, high returns from a few investments often dont make much difference on the overall
return. Dilution is also the result of a successful fund getting too big. When money pours into funds that
have had strong success, the manager often has trouble findings good investment for all the new
money.d) Taxes - when making decisions about your money, fund managers don't consideryour personal
tax situation. For example, when a fund manager sells a security, capital-gain tax is triggered, which
affects how profitable the individual is from the sale. It might have been more advantageous for the
individual to defer the capital gains liability

10. 10 3.2 History of Mutual Fund in India:The mutual fund industry in India started in 1963 with the
formation of Unit Trust of India, at the initiative of the Government of India and Reserve Bank of
India. The history of mutual funds in India can be broadly divided into four distinct phases:First Phase-
(1964-87):Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was setup by the
Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve
Bank of India. In 1978 UTI was de-linked fromthe RBI and the Industrial Development Bank of India (IDBI)
took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was
Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of asset sunder managementsSecond
Phase 1987-93(Entry of Public sector funds):1987 marked the entry of non- UTI, public sector mutual
funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General
InsuranceCorporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fundestablished in
June 1987 followed by Can bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89),
Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC
established its mutualfund in June 1989 while GIC had set up its mutual fund in December 1990.At the
end of 1993, the mutual fund industry had assets under management of Rs.47,004 crores.

11. 11Third Phase- 1993-2003(Entry of Private sector funds):With the entry of private sector funds in
1993, a new era started in the Indian mutual fund industry, giving the Indian investors a wider choice of
fund families. Also, 1993was the year in which the first Mutual Fund Regulations came into being, under
which all mutual funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer
(now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993.The
1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual
Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund) Regulations
1996.The number of mutual fund houses went on increasing, with many foreign mutual funds setting up
funds in India and also the industry has witnessed several merger sand acquisitions. As at the end of
January 2003, there were 33 mutual funds with total assets of Rs. 1, 21,805 crores. The Unit Trust of
India with Rs.44, 541 crores ofassets under management was way ahead of other mutual funds.Fourth
Phase since February 2003:In February 2003, following the repeal of the Unit Trust of India Act 1963
UTI wasbifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India
with assets under management of Rs.29,835 crores as at the end of January 2003, representing broadly,
the assets of US 64 scheme, assured return and certain other schemes. The Specified Undertaking of
Unit Trust of India, functioning under an administrator and under the rules framed by Government of India
and doesn't come under the purview of the Mutual Fund Regulation The second is the UTI Mutual Fund,
sponsored by SBI, PNB, BOB and LIC. It isregistered with SEBI and functions under the Mutual Fund
Regulations. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000
12. 12crores of assets under management and with the setting up of a UTI Mutual Fund,conforming to the
SEBI Mutual Fund Regulations, and with recent mergers takingplace among different private sector
funds, the mutual fund industry has entered itscurrent phase of consolidation and growth.A graph
indicates the growth of assets over the years.
13. 133.3 Types of Mutual Funds Schemes:3.3.1 ON THE BASIS OF STRUCTURE: a) Open - Ended
Schemes: An open-end fund is one that is available for subscription throughout the year. These do not
have a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value ("NAV") related
prices. The key feature of open-end schemes is liquidity, where you can buy and sell the mutual fund unit
at any time. b) Close - Ended Schemes: These schemes have a pre-specified maturity period. One can
invest directly in the scheme at the time of the initial issue. Depending on the structure of the scheme
there are two exit options available to an investor after the initial offer period closes. First, the Investors
can transact (buy or sell) the units of the scheme on the stock exchanges where they are listed. Second,
some close-ended schemes provide an additional option of selling the units directly to the Mutual Fund
through periodic repurchase at the schemes NAV. SEBI Regulations ensure that at least one of the two
exit routes is provided to the investor. c) Interval Schemes: Interval Schemes are that scheme, which
combines the features of open-ended and close-ended schemes. The units may be traded on the stock
exchange or may be open for sale or redemption during pre-determined intervals at NAV related prices.
14. 14 3.3.2 ON THE BASIS OF NATURE: a) Equity fund: These funds invest a maximum part of their
Principal amount into equities holdings. The structure of the fund may vary different for different schemes
and the fund managers outlook on different stocks. Equity investments are meant for a longer term, thus
Equity funds rank high on the risk-return matrix. b) Debt funds: The objective of these Funds is to invest in
debt papers. Government authorities, private companies, banks and financial institutions are some of the
major issuers of debt papers. By investing in debt instruments, these funds ensure low risk and provide
stable income to the investors. c) Balance fund: They are a mix of both equity and debt funds. They invest
in both equities and fixed income securities, which are in line with pre-defined investment objective of the
scheme. These schemes aim to provide investors with the best of both the Funds. Equity part provides
growth and the debt part provides stability in returns.
15. 15 3.3.3 ON THE BASIS OF INVESTMENT OBJECTIVE: a) Growth Schemes: These Schemes are
also known as equity schemes. The aim of these schemes is to provide capital appreciation over medium
to long term. These schemes normally invest a major part of their fund in equities and are willing to bear
short-term decline in value for possible future appreciation b) Income Schemes: These are also known as
debt schemes. The aim of these schemes is to provide regular and steady income to investors. These
schemes generally invest in fixed income securities such as bonds and corporate debentures. Capital
appreciation in such schemes may be limited c) Money Market Schemes: These Schemes aim to provide
easy liquidity, preservation of capital and moderate income. These schemes generally invest in safer,
short-term instruments, such as treasury bills, certificates of deposit, commercial paper and inter-bank call
money.
16. 16 3.3.4 Types of Funds taken for analysis: a) Large Cap Funds: These are those types of Funds
which invest their money in large Blue chip Companies, having with a market capitalization of more than
Rs 1000 crores. Investing in large cap is a low risk-return preposition because such funds are widely
research and information available. One of the advantage of large cap funds are that they are less volatile
than mid cap and small cap funds because investors are investing in this types of fund for a long term
prospective and help to keep these fund away from the volatility of the markets. Top Performer under this
category: 1) HDFC Top 200: Its Compounded Annualized Returns of last 5 years is 24.5%. 2) Reliance
Large Cap Fund: Its Compounded Annualized Returns of last 5 years is 22.6%. 3) Franklin India Blue
Chip: Its Compounded Annualized Returns of last 5 years is 20.7%. 4) Kotak 30: Its Compounded
Annualized Returns of last 5 years is 19%. 5) DSPML Top 100 Equity: Its Returns of last year is 18.4%.
b) Mid Cap Funds: This types of Funds invest their money in mid sizes companies. Companies having
market Capitalization between the Rs 500crores to Rs 1000 crores are come under the mid cap
companies. Mid Cap Funds are very volatile and tends to fall if the market is fall in bad times. But this
gives good return in
17. 17 short term. Top Performer under this category: 1) IDFC Premier equity fund: Its Compounded
Annualized Returns of last 5 years is 29.2%. 2)Sundaram select mind cap fund (G): Its Compounded
Annualized Returns of last 5 years is 24.8%. 3) Reliance Growth: Its Compounded Annualized Returns of
last 5 years is 23%. 4) Birla Sun life mid cap fund: Its Compounded Annualized Returns of last 5 years is
21.9%. 5) L&T mid cap fund: Its Compounded Annualized Returns of last 5 years is 17%. c) Small Cap
Funds: These types of Funds are investing their money in Small size companies. Companies having
market capitalization up to Rs 500 crores come under the categories of Small Cap companies. Small Cap
Funds are more volatile than Mid Cap & Large Cap Funds. Its Risk-Return Matrix are very high. Top
performer under this category: 1) L&T Small cap fund: 2) JP Morgan India smaller companies fund(G) 3)
HSBC Small cap fund 4) Sundaram select small cap fund (G): d) Sector Funds: These types of Funds are
investing their money in particular sector of the
18. 18 economy. Such as infrastructure, Banking, Retail, FMCG, ect. These Funds are more volatile than
Diversified funds having stocks of many sectors. These Funds are high risk -reward category. These
types of Funds are only for the short term investors, who are able to take high risk ability. Top Performer
funds under this category: 1) Reliance Diversified Power sector fund (G): Its Compounded Annualized
Returns of last 5 years is 27.8%. 2) Reliance Banking fund (G): Its Compounded Annualized Returns of
last 5 years is 25.7%. 3) Reliance Pharma (G): Its Compounded Annualized Returns of last 5 years is
25.4%. 4) ICICI Prudential infrastructure fund (G): Its Compounded Annualized Returns of last 5 years is
20.5%. 5) UTI Banking sector fund (G): Its Compounded Annualized Returns of last 5 years is 20.4%.
19. 19 e) Diversified funds: These are a kind of funds which invest there most of there money in different
sectors like FMCG, Infrastructure, Pharma, ect. This helps to Diversified there Risk into various sectors. If
one sector is going down then other sector may compensate the loss. These types of funds give
consistent return without much volatility in long term. Top Performer Funds under this category: 1) IDFC
Premium Equity fund-planA (G): Its Compounded Annualized Returns of last 5 years is 26.9%. 2)
Reliance regular saving fund-Equity growth: Its Compounded Annualized Returns of last 5 years is 26%
return. 3) HDFC Top 200- Growth: Its Compounded Annualized Returns of last 5 years is 21.5%. 4)
HDFC Equity fund (G): Its Compounded Annualized Returns of last 5 years is 21.3%. 5) Birlasunlife
frontline Equity fund: Its Compounded Annualized Returns of last 5 years is 21.2%.
20. 20 CHAPTER 4 CASE STUDY
21. 214.1 RELIANCE MUTUAL FUND:Reliance Mutual Fund is Indias leading Mutual Fund with Quarter
Average Assetsunder management (AAUM) of Rs 102066Crores.Reliance Mutual Fund, a part of the
Reliance - Anil Dhirubhai Ambani Group, is oneof the fastest growing mutual funds in the country. RMF
offers investors a well-rounded portfolio of products to meet varying investor requirements and
haspresence in 159 cities across the country. Reliance Mutual Fund constantlyendeavors to launch
innovative products and customer service initiatives to increasevalue to investors. "Reliance Mutual Fund
schemes are managed by Reliance CapitalAsset Management Limited., a subsidiary of Reliance Capital
Limited, which holds93.37% of the paid-up capital of RCAM. The schemes that I have taken for analysis
from Reliance Mutual Fund are:4.1.1 RELIANCE BANKING FUND (G) [under Sector Fund]: The
primaryinvestment objective of the Scheme is to seek to generate continuous returns by actively investing
in equity and equity related or fixed income securities ofcompanies in the Banking Sector.Fund overview:
Fund Types- Open Ended Investment Plan- Growth Assets sizes- Rs1466 Crores Launches date- May21,
2003 Benchmark- Bank Nifty Fund Manager- Mr. Sunil Singhania
22. 224.1.2 RELIANCE MEDIA & ENTERTAINMENT FUND(G) [under Sector Fund]: The primary
investment objective of the Scheme is to generate consistent returns by investing in equity / equity related
or fixed income securities of media& entertainment and other associated companies. Fund overview:
Fund Types- Open Ended Investment Plain- Growth Assets sizes- Rs112.05 crores Launch date- Sep 27,
2007 Benchmark- NA Fund Manager- Mr. Sailesh Raj Bhan4.1.3 RELIANCE VISION (G) [under large cap
fund]: Seeks to provide long term capital appreciation by primarily investing in growth oriented
stocks.Fund overview: Fund Types- Open Ended Investment Plan- Growth Assets Sizes- Rs 61crores
Launch date- Aug8, 2007 Bench mark- BSE 100 Fund Manager- Mr. Ashwani Kumar
23. 234.2 UTI MUTUAL FUND:UTI Mutual Fund was started in 14, January 2003 by UTI Trustee Co, Pvt.
Ltd. formanaging the schemes of UTI Mutual Fund. UTIAMC provides professionallymanaged back office
support for all business services of UTI Mutual Fund inaccordance with the provisions of the Investment
Management Agreement, the TrustDeed, the SEBI Regulations and the objectives of the schemes.Since
February 3, 2004, UTIAMC is also a registered portfolio manager under theSEBI for undertaking portfolio
management services. UTIAMC also acts as themanager and marketer to offshore funds through its 100
% subsidiary, UTIInternational Limited, registered in Guernsey, Channel Islands.UTIAMC presently
manages a capital of over Rs. 65, 38,724.42 lakhs as on 31stDecember 2010. UTI Mutual Fund has a
track record of managing a variety ofschemes catering to the needs of every class of citizens. It has a
nationwide networkconsisting 148 UTI Financial Centers (UFCs) and UTI International offices inLondon,
Dubai and Bahrain.UTIAMC has a well-qualified, professional fund management team, which has
beenfully empowered to manage funds with greater efficiency and accountability in thesole interest of the
unit holders.UTIMF has consistently reset and upgraded transparency standards. All thebranches, UFCs
and registrar offices are connected on a robust IT network to ensurecost-effective quick and efficient
service.The schemes that I have taken for analysis from UTI Mutual Fund are:4.2.1 UTI
INFRASTRUCTURE FUND(G) [under Sector Fund] : Investment Objective is capital appreciation by
investing in the companies engaged in thesectors like Metals, Real Estate, Oil ; Gas, Power, Chemicals,
Engineering etc.
24. 24Fund overview: Fund Types- Open Ended Investment Plan- Growth Assets Sizes- Rs 1581crores
Launch date- Apr7, 2004 Bench mark- BSE 100 Fund Manager- Mr. Sanjay Dongre4.2.2 UTI LARGE
EQUITY FUND (G) [under large cap Fund]: The Scheme is designed specifically for large corporate
investors and as well as high net worthy investors who would like to invest large amount in exclusive
Scheme which allow sentry and exit at NAV. Fund overview: Fund Types- Open Ended Investment Plan-
Growth Assets Sizes- Rs 2170crores Launch date- may18, 1992 Bench mark- BSE sensitive index Fund
Manager- Mr. Anoop Bhaskar

25. 254.2.3 UTI MID CAP FUND [ under Mid cap fund]: Its aims to provide to investors growth of capital
over a period of time by investing in mid cap stock ,aswell as to make periodical distribution of income
from investment in stocks ofrespective sectors of the Indian economy.Fund overview: Fund Types- Open
Ended Investment Plan- Growth Assets Sizes- Rs 375crores Launch date- Apr 07, 2004 Bench mark-
CNX mid cap Fund Manager- Mr. Anoop Bhaskar
26. 264.3 SBI MUTUAL FUND:SBI Mutual Fund is Indias largest bank sponsored mutual fund and has a
trackrecord in judicious investments and consistent wealth creation. The fund traces itslineage to SBI -
Indias largest banking enterprise. The institution has grown immensely since its inception and today it is
Indias largest bank, patronized by over80% of the top corporate houses of the country.SBI Mutual Fund is
a joint venture between the State Bank of India and Society General Asset Management, one of the
worlds leading fund managementcompanies that manages over US$ 500 Billion worldwide.In twenty
years of operation, the fund has launched 38 schemes and successfully redeemed fifteen of them. In the
process it has rewarded its investors handsomely with consistent returns.A total of over 5.8 million
investors have reposed their faith in the wealth generationexpertise of the Mutual Fund.Today, the fund
manages over Rs. 42,100 crores of assets and has a diverse profile ofinvestors actively parking their
investments across 38 active schemes.The fund serves this vast family of investors by reaching out to
them through network of over 130 points of acceptance, 29 investor service centers, 59 investorservice
desks and 6 Investor Service Points.SBI Mutual is the first bank-sponsored fund to launch an offshore
fund Resurgent India Opportunities Fund. The schemes that I have taken for analysis from SBI Mutual
Fund are:
27. 274.3.1SBI MAGNUM SECTOR UMBRELLA-PHARMA (G) [under sector Fund]:It provides the
investors maximum growth opportunity through equity investment sin stocks of growth oriented sector
called Pharma in long run.Fund overview: Fund Types- Open Ended Investment Plan- Growth Assets
Sizes- Rs 39.69 crores Launch date- JUL 14, 1999 Bench mark- BSE health care Fund Manager- Mr.
Sohini Andani4.3.2 SBI MAGNAM EQUITY FUND (G)[ under large cap Fund]: To provideinvestors long
term capital appreciation along with the liquidity of an open-endedscheme. The scheme will invest in a
diversified portfolio of equities of high growthcompanies.Fund overview: Fund Types- Open Ended
Investment Plan- Growth Assets Sizes- Rs 469 crores Launch date- jan 1, 1991 Bench mark- BSE 100
Fund Manager- Mr. R Srinivasan
28. 284.3.3 SBI MAGNUM MID CAP FUND [under mid cap Fund]: To provideinvestors with opportunities
for long term growth in capital along with the liquidityof an open ended scheme by investing
predominantly in a well diversified basket ofequity stocks of companies and in debt and money market
instruments.Fund overview: Fund Types- Open Ended Investment Plan- Growth Assets Sizes- Rs
303crores Launch date- Mar 17.2005 Bench mark- CNX MID CAP Fund Manager- Mr. Sohini Andani
29. 294.4 FRANKLIN TEMPLETION MUTUAL FUND:Franklin Templeton Investments is one of the
largest financial services groups in theworld based at San Mateo, California USA. The group has US$
642.3 billion inassets under management globally.Franklin Templeton has offices in 33 locations across
India and manages averageAUM of Rs. 42142.21 crores for over 22 lakhs investors (as on September
30, 2010).The schemes that I have taken for analysis from FRANKLIN TEMPLETION MutualFund
are:4.4.1 FRANKLIN TEMPLETION FMCG FUND [under Sector Fund]: Thescheme aims to achieve long
term capital appreciation through exclusively investingin shares of Fast Moving Consumer Goods
Companies. Fund overview: Fund Types- Open Ended Investment Plan- Growth Assets Sizes- Rs
51crores Launch date- Mar 31.1999 Bench mark- NA Fund Manager- Anil Prabhudas4.5 JM FINANCIAL
MUTUAL FUND:It is one of India s first private sector mutual funds-an integral part of the first wavethat
commenced operations in 1993-94.It is a part of JM Financial Group , which hasa rich heritage, built over
three decade.
30. 30Groups origins can be traced back to the 1950s when the Kampani family began toget involved in
Indias then capital markets. JM Financial & Investment Consultancy Services was founded on September
15, 1973. JM Financial Asset Management Private Limited started operations in December1994 with a
simultaneous launch of three funds-JM Liquid Fund (now JM Income Fund), JM Equity Fund and JM
Balanced Fund. Today, JM Financial Mutual Fundoffers a bouquet of funds that caters to the diverse
needs of both its institutional andindividual investors.Its mission is to manage risk effectively while
generating top quartile returns acrossall product categories. We believe that to cultivate investor loyalty,
we must providea safe haven for their investments. We are focussed on helping our investors realizetheir
investment goals through prudent advice, judicious fund management, accurateresearch, and strong
systems of managing risk scientifically.The schemes that I have taken for analysis from JM FINANCIAL
Mutual Fund are:4.5.1 JM LARGE CAP FUND (G) [under large cap Fund]: The Scheme aims toprovide
long term capital appreciation from a portfolio that is investedpredominantly in equity and equity related
instruments in the Healthcare sector. Fund overview: Fund Types- Open Ended Investment Plan- Growth
Assets Sizes- Rs5.1 crores Launch date- Jun 9.2004 Bench mark- BSE Health care sector Fund
Manager- Mr. Sanjay Chhabaria
31. 314.5.2 JM MID CAP FUND [under mid cap Fund]: The investment objective of theScheme is to
provide capital appreciation by primarily investing in mid cap fund.Fund overview: Fund Types- Open
Ended Investment Plan- Growth Assets Sizes- Rs9.7 crores Launch date- Jun 9.2004 Bench mark- BSE
500 Fund Manager- Mr. Sanjay Chhabaria4.5.3 JM SMALL & MID CAP FUND (G)[under small cap Fund]:
The investmentobjective of the Scheme is to provide capital appreciation by primarily investing insmall
cap and mid-cap stocks. Fund overview: Fund Types- Open Ended Investment Plan- Growth Assets
Sizes- Rs 58 crores Launch date- Mar 9, 2007 Bench mark- CNX MID CAP Fund Manager- Mr. Sanjay
Chhabaria
32. 324.6BIRLA SUNLIFE MUTUAL FUND:Birla Sun Life Asset Management Company Ltd. (BSLAMC) is
a joint venturebetween the Aditya Birla Group and the Sun Life Financial Services Inc. of Canada.The
joint venture brings together the Aditya Birla Groups experience in the Indianmarket and Sun Lifes global
experience.Birla Sunlife Mutual Fund is established in 1994 .It offer a range of investmentoptions,
including diversified and sector specific equity schemes, fund of fundschemes, hybrid and monthly
income funds, a wide range of debt and treasuryproducts and offshore funds. BSLAMC is one of the
largest team of researchanalysts in the industry, dedicated to tracking down the best companies to invest
in.BSLAMC strives to provide transparent, ethical and research-based investments andwealth
management services.The schemes that I have taken for analysis from BIRLA SUNLIFE Mutual
Fundare:4.6.1BIRLASUNLIFE ADVANTAGE FUND [under Large cap Fund]: To achievelong-term growth
of capital through investments mainly in equity and equity relatedinstruments. Fund overview: Fund
Types- Open Ended Investment Plan- Growth Assets Sizes- Rs 414 crores Launch date- Feb 24, 1995
Bench mark- BSE Sensitive index Fund Manager- Mr. Ajay Argal
33. 334.6.2BIRLASUNLIFE SMALL & MID CAP FUND [under small cap Fund]:It objective is to generate
consistent long-term capital appreciation by investingpredominantly in equity and equity related securities
of companies considered to besmall and mid cap. It may also invest a certain portion of its corpus in fixed
incomesecurities including money market instruments, in order to meet liquidityrequirements from time to
time.Fund overview Fund Types- Open Ended Investment Plan- Growth Assets Sizes- Rs 189 crores
Launch date- Apr 9, 2007 Bench mark- CNX MID CAP Fund Manager- Mr. Ankit Sancheti
34. 344.7 KOTAK MAHINDRA MUTUAL FUND:Kotak Mahindra is one of Indias leading financial
institutions, offering completefinancial solutions that encompass every sphere of life. From commercial
banking, tostock broking, to mutual funds, to life insurance, to investment banking, the groupcaters to the
financial needs of individuals and corporate.The group has a net worth of Rs.7,911 crore and employs
around 20,000 employeesacross its various businesses, servicing around 7 million customer accounts
through adistribution network of 1,716 branches, franchisees and satellite offices across morethan 470
cities and towns in India and offices in New York, California, SanFrancisco, London, Dubai, Mauritius and
Singapore.Kotak Mahindra Asset Management Company Limited (KMAMC), a wholly ownedsubsidiary of
KMBL, is the Asset Manager for Kota Mahindra Mutual Fund(KMMF). KMAMC started operations in
December 1998 and has over 10 Lacinvestors in various schemes. KMMF offers schemes catering to
investors withvarying risk - return profiles and was the first fund house in the country to launch adedicated
gilt scheme investing only in government securities.The schemes that I have taken for analysis from
KOTAK MAHINDRA MutualFund are:4.7.1 KOTAK MAHINDRA MID CAP FUND [under mid cap Fund]:
Theinvestment objective of Kotak Midcap is to generate capital appreciation from adiversified portfolio of
equity & equity related securities. The scheme predominantlyinvests in companies in the mid market
capitalization segment across sectors. Thescheme is well positioned to provide the benefit of potential
growth offered by midcap stocks which are likely to become tomorrows large caps.Fund overview:
35. 35 Fund Types- Open Ended Investment Plan- Growth Assets Sizes- Rs 254 crores Launch date- jan
28, 2005 Bench mark- CNX Nifty junior Fund Manager- Mr. Pankaj Tibrewal4.7.2 KOTAK EQUITY FOF
[under Diversified fund]: To generate long-termcapital appreciation from a portfolio created by investing
predominantly in open-ended diversified equity schemes of Mutual Funds registered with SEBI.Fund
overview: Fund Types- Open Ended Investment Plan- Growth Assets Sizes- Rs 49 crores Launch date-
Aug 09, 2004 Bench mark- NA Fund Manager- Mr. Sajit Pisharodi
36. 364.8 SUNDARAM BNB PARIBAS MUTUAL FUND:Sundaram Mutual, identifying an investment
opportunity long before it manifests asone, is the heart of our business belief.Being in the financial sector
for a long time has given us a great understanding of theIndian economy and that guides us while picking
the companies for its Funds. Onceit unearth a potential opportunity, its Financial Experts spend countless
time toresearch the companies, to see what will deliver the best returns for your money. Itsfinancial
experts are fine tuned to the larger global picture and all its complexities aswell as the intricacies of the
Indian market. We track global economic trends andmarket behaviour to better understand the domestic
markets. We are constantly onthe trail of promising opportunities and once identified, a new theme is
thoroughlyresearched and tested on various platforms before being offered to the investingpublic.The
schemes that I have taken for analysis from SUNDARAM BNB PARIBASMutual Fund are:4.8.1
SUNDARAM SELECT MID CAP FUND (G) [under mid cap fund]:Sundaram Select Mid Cap Fund is an
open ended equity scheme that seeks capitalappreciation by investing in diversified stocks that are
generally termed as mid -caps.Fund overview: Fund Types- Open Ended Investment Plan- Growth Assets
Sizes- Rs 2294 crores Launch date- Jul 19, 2002 Bench mark- BSE Mid cap index Fund Manager- Mr.
Satish Ramanathan
37. 374.8.2SUNDARAM BNB PARIBAS SELECT SMALL CAP FUND(G)[small capfund]: The primary
investment objective of the scheme is to generate consistentlong-term returns by investing predominantly
in equity/equity related instruments ofcompanies that can be termed as small cap.Fund objective: Fund
Types- Open Ended Investment Plan- Growth Assets Sizes- Rs 364 crores Launch date- Jan 24, 2006
Bench mark- BSE Small cap index Fund Manager- Mr. Satish Ramanathan4.8.3 SUNDARAM BNB
PARIBAS GROWTH FUND (G)[under Diversifiedfund]:It seeks to achieve capital appreciation by
investing in a well diversified basket ofequities and equity-related instruments. Income generation would
be the secondaryconsideration.Fund Overview: Fund Types- Open Ended Investment Plan- Growth
Assets Sizes- - Launch date- - Bench mark- - Fund Manager- -
38. 384.9 L & T MUTUAL FUND:L&T Mutual Fund is one of the premier mutual funds in India that serves
theinvestment needs of investors through a suite of acclaimed mutual fund schemes.With world class
investment management practices and an equally competent fundmanagement team, L&T Mutual Fund
helps its investors reach their financial goals.Whether you are an individual investor, institution, or finance
professional, you cangain from the products and expertise that we offer.L&T Mutual Fund is backed by
one of the most trusted and valued brands, L&TFinance incorporated as Non Banking Finance
Company in November 1994, hasearned the trust of thousands of investors by adapting well to the
changing marketingdynamics and emerging as a profitable venture despite the turbulences in
theFinancial market over the past few years.The schemes that I have taken for analysis from L & T
Mutual Fund are:4.9.1 L & T SMALL CAP FUND [under small cap fund]: The scheme seeks togenerate
long term capital appreciation by investing predominantly in equity andequity related instruments of
companies with small cap.Fund overview: Fund Types- Open Ended Investment Plan- Growth Assets
Sizes- Rs 20 crores Launch date- Dec 20, 2007 Bench mark- BSE Small cap index Fund Manager- Mr.
Anant Deep Katre
39. 394.10 TATA MUTUAL FUND:Tata Mutual Fund has earned the trust of lakhs of investors with its
consistentperformance and world-class service.It manages around Rs20,854.00 crores (average AUM for
the quarter of October-December 2010) worth of assets across its varied offerings. Tata Mutual Fund
offersan investment option for everyone, whether you are a businessman or salariedprofessional, a
retired person or housewife, an aggressive investor or a conservativecapital builder.The Tata Asset
Management philosophy is centered on seeking consistent, long-termresults. Tata Asset Management
aims at overall excellence, within the framework oftransparent and rigorous risk controls.Tata Mutual
Fund offers investors a broad range of managed investment products invarious asset classes and risk
parameters, with operational flexibility to suit theirvaried investment needs.It offer a wide range of
services to assist investors have a fulfilling and rewardingfinancial planning experience with us. It have
designed our services keeping in mindthe needs of our investors, giving them a smooth and hassle-free
financial planningprocess.The schemes that I have taken for analysis from TATA Mutual Fund are:1.10.1
TATA DIVIDENT YIELD FUND (G) [under Diversified fund]: ToProvide income distribution and / or
medium to long term capital gains by investing predominantly in high dividend yield stocks.Fund
overview: Fund Types- Open Ended Investment Plan- Growth Assets Sizes- Rs 177 crores Launch date-
Oct 27, 2004
40. 40 Bench mark- BSE Sensitive index Fund Manager- Mr. Mahendra Jajoo / Sachin Relekar4.11
HDFC MUTUAL FUND:HDFC Asset Management Company Ltd (AMC) was incorporated under
theCompanies Act, 1956, on December 10, 1999, and was approved to act as an AssetManagement
Company for the HDFC Mutual Fund by SEBI vide its letter dated July3, 2000.In terms of the Investment
Management Agreement, the Trustee has appointed theHDFC Asset Management Company Limited to
manage the Mutual Fund. The paidup capital of the AMC is Rs. 25.161 crore. The AMC is managing 28
open-endedschemes of the Mutual Fund some are HDFC Growth Fund, HDFC Equity Fund,
41. 41HDFC Top 200 Fund, HDFC Capital Builder Fund, HDFC Core & Satellite Fund,HDFC Premier
Multi-Cap Fund, and HDFC Index Fund.The AMC is also managing 7 closed ended Schemes some are
HDFC Long TermEquity Fund, HDFC Infrastructure Fund, and HDFC Fixed Maturity Plans - SeriesXI,
HDFC Fixed Maturity Plans - Series XII.The AMC is also providing portfolio management / advisory
services.The schemes that I have taken for analysis from HDFC MUTUAL FUND are:4.11.1 HDFC
TOP200 FUND [under Diversified fund]: It objective is to generatelong term capital appreciation by
investing in a portfolio of equities and equitylinked instruments drawn from the BSE 200 Index.Fund
Overview: Fund Types- Open Ended Investment Plan- Growth Assets Sizes- Rs. 9425 crores Launch
date- Oct 27, 2004 Bench mark- BSE 200 index Fund Manager- Mr. Prashant Jain4.12 RELIGARE
MUTUAL FUND:Religare Mutual Fund is managed by Religare Asset Management CompanyLimited, a
subsidiary of Religare Securities Limited (RSL). The AMC wasincorporated on May 20, 2005 and the
mutual fund was set up on July 24, 2006.It manages Assets around Rs104 billion dollars. Religare Asset
Management aims toserve investment needs of individual investors, corporate and institutions
throughmutual funds and sub-advised portfolios. Its product portfolio is managed byindividually focused
management teams to create optimum balance and results. Theyare committed to providing financial
care and top class service. They subscribe to
42. 42sustainable business models and process that factor in the dynamism of the businessin fast
changing market scenarios.The schemes that I have taken for analysis from Religare Mutual Fund are:
4.12.1 RELIGARE SMALL &MID CAP FUND [under small cap fund]: The Scheme seeks to provide long
term capital appreciation by investing in a portfolio that is predominantly constituted of equity and equity
related instruments of mid and small cap companies. Fund overview: Fund Types- Open Ended
Investment Plan- Growth Assets Sizes- Rs 22.4 crores Launch date- Jan 7, 2008 Bench mark- NA Fund
Manager- Mr. Vinay Paharia
43. 43 CHAPTER 5 DATA ANALYSIS5.1 Diversified Funds:1) CAGR Kotak Reliance Sundaram Tata
Dividend HDFCYr/Schemes Equity Diversified Balance yield TOP200 FOF Power fund
44. 44Last 1 yrs 103.78 86.03 96 71.52 102.25Last3 yrs 20.3 13.08 32.07 12.61 20.7Last 5yrs 19.14
21.11 40.16 16.47 29.14 CAGR 120 100 Percent(%) 80 60 40 last 1 yrs 20 last3 yrs 0 last 5yrs Tata
Kotak Reliance Sundaram HDFC dividend Equity FOF diversified balance TOP200 yield power fund
SchemesINTERPRETATIONS:a) In last 1yr HDFC, Tata and Reliance gave maximum return of 102.2%,
103.7%and 96% respectively, Followed by Kotak and Sundaram by 86.03% and 71.5%respectively.b) In
last 3 & 5 yrs, Reliance gave maximum return against its competitors.2) Standard DeviationYrs/Schemes
Tata Kotak Reliance Sundaram HDFC Dividend Equity Diversified Balance fund TOP200 yield FOF
powerLast 1 yrs 0.071419205 0.09292427 0.101266115 0.068953248 0.0932788
45. 45Last 3 yrs 0.099664831 0.09966483 0.111054683 0.082246954 0.0968572Last 5yrs 0.087110732
0.11201375 0.09839249 0.085491183 0.0841035 STANDARD DEVIATION 0.12 0.1 0.08 (in Rs) 0.06
0.04 last 1 yrs 0.02 last3 yrs 0 last 5yrs Tata divident Kotak Equity Reliance Sundaram HDFC yield FOF
diversified balance fund TOP200 power SchemesINTERPRETATIONS:a) As far as the Standard
Deviation in last 1 yrs is concern, it is high in Reliance,which is 0.1 and low in Sundaram (0.068).b) In last
3years, again Reliance has high Standard Deviation about 0.011 followedby Kotak and Tata by0.09
both.c) But in last5 yrs, Kotak is highly volatile followed by Reliance and Tata.3) BetaYrs/Schemes Tata
Kotak Reliance Sundaram HDFC Dividend Equity Diversified Balance fund TOP200 yield FOF Power
0.685522556 0.91563 3 0.970784506 0.839178531 0.889744
46. 46 Last 1 yrs Last 3 yrs 0.173402004 0.1508907 0.100171515 0.094652253 0.127550 Last 5yrs -
0.01188823 0.1985720 0.970784506 0.120147547 0.167198 BETA 1.2 1 0.8 0.6 (in Rs) 0.4 last 1 yrs 0.2
last3 yrs 0 last 5yrs -0.2 Tata Kotak Reliance Sundaram HDFC divident Equity FOF diversified balance
TOP200 yield power fund Schemes INTERPRETATIONS: a) In last 1 yr Reliance has high Beta about
0.97 as compare to others. b) In last 3 yrs all the funds are less volatile with Nifty, but in last 5 yrs
Reliance has high Beta of 0.97, so it has high volatility. c) Tata dividend has low Beta in all the year. 4)
Sharpe RatioYrs/Schemes Tata Kotak Reliance Sundaram HDFC TOP200 Dividend Equity Diversified
Balance
47. 47 yield FOF power fundLast 1 yrs 2.82288 1.92184 1.941195962 1.78291329 2.189613153Last3 yrs
0.54053 0.36523 0.75575441 0.34489246 0.551588391Last 5yrs 0.46532 0.68236 0.991355024
0.50778455 0.82590418 SHARPE RATIO 3 2.5 2 (in Rs) 1.5 1 last 1 yrs 0.5 last3 yrs 0 Tata divident
Kotak Equity Reliance Sundaram HDFC last 5yrs yield FOF diversified balance fund TOP200 power
Schemes INTERPRETATIONS: a) As far as last 1 yr is concern, Tata has highest Sharpe ratio (2.8),
followed by HDFC (2.1), Reliance (1.94), Kotak (1.92) and Sundaram (1.7) . b) In last 3 yrs & 5 yrs,
Reliance has highest Sharpe Ratio against its competitors. c) Tata has low Beta in all the years. 5.2
Sector Fund 1) CAGR (in %)
48. 48Yr/Schemes Reliance Franklin UTI SBI Reliance Banking(G) FMCG(G) infrastructure(G) magnum
Media&Ent(G) Pharma(G)Last1 yrs 120.55 68.57 66.77 112.96 18.94Last3 yrs 30.21 17.52 10.89 3.61
2.07Last 5yrs 25.37 21.73 23.23 12.31 88.77 CAGR 140 Percentage(%) 120 100 80 60 40 20 0 last1 yrs
last3 yrs last 5yrs Schemes INTERPRETATIONS: a) In last1 years, Reliance Banking and SBI gave
highest return of 120% and 112.9% respectively against its competitors. b) In last 3 years, Reliance
Banking gave highest return of 30.2%. And In last 5 yr, Reliance Media & Ent give maximum return of
88.7%. 2) Standard Deviation
49. 49Yr/Schemes Reliance Franklin UTI SBI Reliance banking(G) FMCG(G) infrastructure(G) magnum
Media&Ent(G) Pharma(G)Last1 yrs 0.128943375 0.054102785 0.094154994 0.095626797
0.107992407Last3 yrs 0.115829428 0.060318612 0.104597968 0.109212679 0.118757826Last 5yrs
0.102489584 0.060205922 0.09752141 0.09470864 0.104554454 STANDARD DEVIATION 0.14 0.12 0.1
(in Rs) 0.08 0.06 0.04 0.02 0 last1 yrs last3 yrs last 5yrs Schemes INTERPRETATIONS: a) In all the
three years is concern Reliance Banking has highest Standard Deviation, so it is highly volatile as
compare to its competitors. b) Franklin FMCG is less volatile as compare to its competitors, so it is less
Risky to invest in this Fund. 3) Beta
50. 50Yr/Schemes Reliance Franklin UTI SBI magnum Reliance banking(G) FMCG(G) infrastructure(G)
Pharma(G) Media&Ent(G)Last1 yrs 1.230722931 0.162919496 0.914220081 0.85286803
1.031589083Last3 yrs 0.213887277 0.054444645 0.096699523 0.130467228 0.231784503Last 5yrs
0.248025961 0.093340307 0.145949941 0.168794462 0.26664004 BETA 1.4 1.2 1 (in Rs) 0.8 0.6 0.4 0.2
0 last1 yrs last3 yrs last 5yrs Schemes INTERPRETATIONS: a) In last 1 yr, Reliance Banking has high
Beta of 1.2, so it is highly volatile as compare to its competitors. b) Overall, Franklin FMCG is less volatile
as compare to its competitors, so it is less Risky to invest in this Fund. 4) Sharpe ratio
51. 51Yr/Schemes Reliance Franklin UTI SBImagnum Reliance banking(G) FMCG(G) infrastructure(G)
Pharma(G) Media&Ent(G)Last1 yrs 1.867210636 2.60860683 1.550735632 1.919779766
1.738190637Last3 yrs 0.701616713 0.59406659 0.296815592 0.125784902 -0.044702739Last 5yrs
0.642094973 0.76680298 0.611539329 0.339000122 0.40984207 SHARPE RATIO 3 2.5 2 (in Rs) 1.5 1
0.5 0 last1 yrs -0.5 last3 yrs last 5yrs Schemes INTERPRETATIONS: a) In last 1 yr Franklin FMCG has
highest Sharpe Ratio of 2.6 as compare to its competitors, so it is good indicator for it. b) In last 3 yrs
Reliance Banking & Franklin FMCG has high Sharpe Ratio of 0.7 and 0.5respectively and Reliance Media
& Ent. has lowest of -0.4. c) In last 5 yrs, Franklin has highest Sharpe ratio of 0.7 and SBI has lowest of
0.3. 5.3 Large cap Funds 1) CAGR
52. 52Yrs/Schemes Reliance UTI JM large Birlasunlife SBI magnum vision equity(G) cap adv fund eqlast
1 yrs 88.44 82.65 48.28 14.48 94.09last 3 yrs 14.1 16.34 0.8 8.24 37.61last 5 yrs 23.39 18.02 7.94 18.16
21.11 CAGR 100 90 80 Percentage(%) 70 60 50 40 last 1 yrs 30 last 3 yrs 20 10 last 5 yrs 0 Reliance
UTI JM largecap Birlasunlife SBI magnum vision equity(G) adv fund eq SchemesINTERPRETATIONS:a)
In last 1 yr, CAGR of SBI, Reliance vision & UTI has high by94%, 88.4%, and82.6% respectively, as
compare to its competitors.b) In last 3&5 yrs SBI gave highest return of about 37.6% &21.1%
respectively.c) Overall, Birlasunlife adv. Fund gave least return.2) Standard DeviationYrs/Schemes
Reliance UTI JM large Birlasunlife SBI magnum
53. 53 vision equity(G) cap adv fund eqLast 1 yrs 0.09991376 0.0744288 0.0783383 0.115973242
0.097667168Last 3 yrs 0.10018448 0.0833512 0.0888638 0.112693896 0.105668883Last 5 yrs
0.08864059 0.0780083 0.0813522 0.096871642 0.095151301 STANDARD DEVIATION 0.14 0.12
Percentage(%) 0.1 0.08 0.06 last 1 yrs 0.04 0.02 last 3 yrs 0 last 5 yrs Reliance UTI JM Birlasunlife SBI
vision equity(G) largecap adv fund magnum eq SchemesINTERPRETATIONS:a) In last 1, 3&5 years,
Birlasunlife adv. fund has high Standard Deviation, so it ishighly volatile as compare to its competitors.b)
Overall, UTI equity is least volatile fund among its competitors, so it is better toinvest in such a less risky
fund.
54. 543) BetaYrs/Schemes Reliance UTI JM large Birlasunlife SBI magnum vision equity(G) cap adv fund
eqLast 1 yrs 0.17248455 0.7078600 0.7575292 1.128608674 0.93092074Last 3 yrs 0.13229572
0.1190345 0.0703577 0.165711517 0.139890907Last 5 yrs 0.17248455 0.1607937 0.1049985
0.206156923 0.182037128 BETA 1.2 1 0.8 in(Rs) 0.6 last 1 yrs 0.4 last 3 yrs 0.2 last 5 yrs 0 Reliance UTI
JM largecap Birlasunlife SBI magnum vision equity(G) adv fund eq SchemesINTERPRETATIONS:a) In
last 1 yr, Birlasunlife has a high Beta of 1.1 as compare to its competitors,which shows high volatility.b) In
last 1yr, Reliance vision has low Beta (0.17)c) JM large cap in last 3&5 yrs also has low Beta about 0.7
&0.1 respectively, so it isless risky and safer to invest.
55. 554) Sharpe RatioYr/Schemes Reliance UTI JM large cap Birlasunlife SBI magnum eq vision
equity(G) adv fundLast 1 yrs 2.194170308 0.01409560 0.3844196 1.741029813 1.80743058Last 3 yrs
0.377029792 0.46218302 -0.0158758 0.237019813 0.200605215Last 5 yrs 0.646034027 0.5301262
0.2093977 0.485836378 0.53402252 SHARPE RATIO 2.5 2 Percentage(%) 1.5 1 last 1 yrs last 3 yrs 0.5
last 5 yrs 0 Reliance UTI equity(G) JM largecap Birlasunlife SBI magnum -0.5 vision adv fund eq
SchemeINTERPRETATIONS:a) In last 1 yr Reliance vision, SBI eq& Birlasunlife has high Sharpe Ratio
about2.1, 1.8 &1.7respectively, which shows good indicators.UTI has low which is.01.b) In last 3&5 years,
JM large cap has a less Sharpe ratio about -.01 &0.2respectively, which shows its poor Performance.
56. 565.4 Midcap Fund1) CAGRYrs/Schemes JM midcap SBI magnum UTI Kotak Sundaram mid cap
midcap midcap select mid capLast1yrs 110 119.2 129.86 109.6 139.49Last3 yrs 7.9 1.2 13.14 5.2
15.94Last 5yrs 14.54 16.86 16.49 17.19 28.38 CAGR 160 140 120 100 (in Rs) 80 60 last1yrs 40 20 last3
yrs 0 last 5yrs JM midcap SBI magnum UTImidcap Kotak Sundaram mid cap midcap select mid cap
SchemesINTERPRETATIONS:a) In last 1 yr, Sundaram midcap gave highest return about 139.4%,
followed byUTI,SBI and JM by 129.8%, 119%, and 110% respectively, and Kotak gave lowest retunof
109.6%b) In last 3&5 yrs, Sundaram gave highest return about 15.9% & 28.3% respectively.And SBI
gave lowest return.
57. 572) Standard DeviationYrs/Schemes JM SBI magnum UTI midcap Kotak Sundaram midcap mid cap
midcap select mid capLast1yrs 0.1182776 0.156138896 0.1040285 0.1010611 0.150454556Last3 yrs
0.1129622 0.144536727 0.1173093 0.1118037 0.130397639Last 5yrs 0.102009 0.229935443 0.105609
0.09941857 0.109763284 STANDARD DEVIATION 0.25 0.2 0.15 in (Rs) 0.1 last1yrs 0.05 last3 yrs 0 last
5yrs JM midcap SBI magnum UTImidcap Kotak Sundaram mid cap midcap select mid cap
SchemesINTERPRETATIONS:a) In last 1 yr, Standard Deviation of SBI midcap has very high about
0.15whichshows high volatility. Followed by Sundaram about 0.11.b) In last 3& 5yrs, alsoSBI shows high
Standard Deviation about 0.14 & 0.22.
58. 583) BetaYrs/Schemes JM midcap SBI magnum UTI Kotak Sundaram mid cap midcap midcap select
mid capLast1yrs 1.143846 1.512159602 0.998759 0.9419961 1.428028244Last3 yrs 0.154830
0.187077319 0.157491 0.1782199 0.184278143Last 5yrs 0.192531 0.229935443 0.207778 0.21723842
0.21284543 BETA 1.6 1.4 1.2 1 (in Rs) 0.8 0.6 last1yrs 0.4 0.2 last3 yrs 0 last 5yrs JM midcap SBI
magnum UTImidcap Kotak midcap Sundaram mid cap select mid cap SchemesINTERPRETATIONS:a) In
last 1 yr, Beta of SBI and Sundaram has high about 1.5 &1.4 respectively, ascompare to its competitors
.UTI and Kotak shows low Beta about0.99 &0.94respectively.b) In last 3 & 5 years. All the Funds showed
almost equal Beta.
59. 59 4) Sharpe RatioYrs/Schemes JM SBI magnum UTI midcap Kotak Sundaram select midcap mid
cap midcap mid caplast1yrs 1.883957 1.590404948 2.3660246 2.1446380 1.81157006last3 yrs 0.230390
0.143719771 0.3559378 0.1710649 0.115906618last 5yrs 0.388877 0.435169362 0.437773 0.48133648
0.682191305 SHARPE RATIO 2.5 2 1.5 (in Rs) 1 last1yrs 0.5 last3 yrs 0 last 5yrs JM midcap SBI
magnum UTImidcap Kotak midcap Sundaram mid cap select mid cap Schemes INTERPRETATIONS: a)
In last 1year Sharpe Ratio of UTI is highest about 2.3 followed by Kotak(2.1),JM(1.88),Sundaram(1.81)
and SBI(1.5). b) In last 3 years, UTI & JM shows highest Sharpe ratio about 0.35 & 0.23 respectively. SBI
showed lowest about 0.14. c) In last 5 years, Sundaram (0.68) shows highest Sharpe ratio and JM (0.38)
shows lowest.
60. 605.5 Small cap Fund1) CAGRYrs/Schemes Sundaram JM small Birlasunlife L&T small Religare
small cap & mid cap small&mid cap cap small&mid capLast 1yr 9.4 113.48 140.75 119.77 133.77Last 3
yrs 6.51 -17.27 4.26 -14.99 7.36Last 5 yrs CAGR 160 140 120 100 80 in(Rs) 60 last 1yr 40 last 3 yrs 20 0
last 5 yrs -20 Sundaram JM small & Birlasunlife L&T small Religare -40 smallcap mid cap small&mid cap
small&mid cap cap SchemesINTERPRETATIONS:a) In last 1 yr, Birlasunlife small midcap gave highest
return about140.7% followedby Religare small& midcap, L&T & JM about 133.7, 119.7%, and
113.4%respectively.b) In last 3 yr, Religare small cap give highest return about 7.3% against
itscompetitors.JM small cap gave -17%.
61. 612) Standard DeviationYrs/Schemes Sundaram JM small & Birlasunlife L&T Religare small cap mid
cap small&mid small small&mid cap cap capLast1yr 0.052904985 0.14490943 0.119329293 0.102897
0.084923964Last3 yrs 0.098308914 0.160988697 0.122212359 0.138513 0.11489531Last5 yrs - - - - -
STANDARD DEVIATION 0.18 0.16 0.14 0.12 (in Rs) 0.1 0.08 0.06 last 1yr 0.04 0.02 last 3 yrs 0 last 5 yrs
Sundaram JM small & Birlasunlife L&T small Religare smallcap mid cap small&mid cap small&mid cap
cap SchemesINTERPRETATIONS:a) JM small cap Funds have high Standard deviation, which shows
high volatility ascompare to its competitors.b) Sundaram small cap shows least standard deviation, which
shows its strength.
62. 623) BetaYrs/Schemes Sundaram JM small & Birlasunlife L&T Religare small cap mid cap small&mid
small small&mid cap cap capLast 1yr 0.757755664 1.277975835 1.132571413 0.923006
0.791631306Last3 yrs 0.156519161 0.233322213 0.179818858 0.491886 0.442382937Last5 yrs - - - - -
BETA 1.4 1.2 1 in(Rs) 0.8 0.6 last 1yr 0.4 0.2 last 3 yrs 0 last 5 yrs Sundaram JM small & Birlasunlife L&T
small Religare smallcap mid cap small&mid cap small&mid cap cap SchemesINTERPRETATIONS:a) In
last 1 yr, there is high Beta in JM small&mid cap (1.2) and low in Sundaramsmall cap(0.7)b) In last 3
yrs,L&T and Religare shown high Beta about 0.49&0.44. Sundaram haslow Beta about 0.15.
63. 634) Sharpe RatioYrs/Schemes Sundaram JM small & Birlasunlife L&Tsmall Religare small cap mid
cap small&mid cap small&mid cap capLast 1yr 0.740297547 1.624960177 2.216180638 2.258105041
2.902924217Last 3 yrs -0.52788846 -0.16756146 0.165643299 -0.32554 0.323392115Last 5 yrs - - - - -
SHARPE RATIO 3.5 3 2.5 2 (in Rs) 1.5 last 1yr 1 last 3 yrs 0.5 0 last 5 yrs -0.5 Sundaram JM small &
Birlasunlife L&T small Religare -1 smallcap mid cap small&mid cap small&mid cap cap
SchemesINTERPRETATIONS:a) In last 1 yr, Religare small& midcap shows highest Sharpe ratio of 2.9
against itscompetitors, whereas Sundaram shows lowest, which is0.74.b) In last 3 yrs,again Religare
shows high Sharpe ratio of 0.32 and low in Sundaramabout -.052.
64. 64 CHAPTER 6 FINDINGS
65. 65 6. Performance Sheets: Basis on Compounded annual growth rate (CAGR) 6.1.1Performance
Sheet (Diversified Funds) Fig (in %)Schemes CAGR CAGR CAGR Rank1 yr Rank 2yrs Rank 3yrs (1yrs)
(3yrs) (5yrs)1.Tata dev 100 20.3 19.14 2 3 42.Kotak eq 86.03 13.08 21.11 4 4 33.Reliance 100 32.07
40.16 3 1 1diversified4.Sundaram Bal 71.52 12.61 16.47 5 5 55.HDFC 102.25 20.7 29.14 1 2 2TOP50
6.1.2 Performance Sheet (Sector Funds) Fig (in %)Schemes CAGR CAGR CAGR Rank1 yr Rank 2yrs
Rank 3yrs (1yrs) (3yrs) (5yrs)1.Reliance Banking 120.55 251.23 25.37 1 1 22.Franklin FMCG 68.68 17.52
21.73 3 4 43.UTI infrastructure
66.77 10.89 23.23 3 34.SBI Pharma 112.96 3.61 12.31 2 5 55.Reliance 18.94 20.9 88.77 5 2 1Media&Ent
Get more projects at MBAeNotes
66. 66 6.1.3Performance Sheet (Large cap Funds) Fig (in %)Schemes CAGR CAGR CAGR Rank1 yr
Rank 2yrs Rank 3yrs (1yrs) (3yrs) (5yrs)1.Reliance Vision 88.44 14.1 23.39 2 3 12.UTI Eq 82.65 16.34
18.02 3 2 43.JM largecap 48.58 0.8 7.94 4 5 54.Birlasunlife adv 14.48 8.24 18.16 5 4 35.SBI Eq 94.19
37.61 21.11 1 1 2 6.1.4Performance Sheet (Midcap Fund) Fig (in %)Schemes CAGR CAGR CAGR
Rank1 yr Rank 2yrs Ran (1yrs) (3yrs) (5yrs) k 3yrs1JM midcap 110 7.9 14.54 4 3 52.SBI mid cap 119.2
1.2 16.86 3 5 33.UTI midcap 129.86 13.14 16.49 2 2 44.Kotak midcap 109.6 5.2 17.19 5 4 25.Sundaram
midcap 139.49 15.94 28.38 1 1 1
67. 67 6.1.5Performance Sheet (Small cap Fund) Fig (in %)Schemes CAGR( CAGR CAGR Rank1 yr
Rank 2yrs Rank 3yrs 1yrs) (3yrs) (5yrs)1.Sundaram small 9.4 6.51 5 2 -cap2.JM small&mid cap 113.48 -
17.27 4 5 -3.Birlasunlife small 140.75 4.26 1 3 -midcap4.L&T smallcap 119.75 -14.99 3 4 -5.Religare
small 133.77 7.36 2 1 -midcap
68. 686.2Finding &suggestions6.2.1Diversified Fundsa) The Performance of Tata Dividend & HDFC
top200 are better than their competitors because there Sharpe ratio & CAGR are relatively high
against their competitors, there Beta & Standard Deviation both are low.b) The Performance of Reliance
Diversified & Sundaram are poor because of therelow Sharpe ratio & CAGR. Also they are more risky as
compare to there competitorsbecause of there high Beta.c) I would suggest giving first priority to HDFC
TOP200 and second to Tata Dividend.6.2.2 Sector Fundsa) The Performance of Reliance Banking on the
Basis of CAGR is outperforming ascompare to its competitors. Its Sharpe ratio is also good after Franklin
FMCG.b) Those who want to take high return as well as risk Reliance Banking is good forthem because
its Beta is also high among its competitors.c) Those who want to keep them safe and able to take less
risk, for them Franklin isbetter option.6.2.3 Large cap Fundsa) SBI & Reliance vision both have good
CAGR and Sharpe ratio, But Reliance havevery less Beta as compare to SBI, so Reliance should be the
priority for investment.
69. 69b) JM large cap & Birlasunlife adv both is poor performer as far as CAGR andSharpe ratio is
concern, so try to avoid them.6.3.4 Mid cap Fundsa) Sundaram select mid cap is the top performer in
term of CAGR and Sharpe ratio,but have relatively high Beta, It is good for Risk taking investors.b) UTI is
second best performer, also have low Beta as compare to Sundaram selectmid cap, so it is good for safe
investment.c) CAGR & Sharpe ratio of SBI is relatively low and its Beta and Standard Deviationare very
high as compare to its competitors, so try to avoid it.6.3.5 Small cap Fundsa) Sharpe ratio and CAGR of
Religare are relatively high, also its Beta is low, and soit is good to invest in this fund.b) Sundaram small
cap has very low CAGR & Sharpe ratio.
70. 70 CHAPTER 6 REFRENCES
71. 716.1 Books:
1) Donald E Fischer ,Security Analysis & Portfolio Management
6.2) Web sites:
1) http://www.bluechipindia.co.in/
2) http://www.franklintempletonindia.com
3) http://www.utimf.com
4) http://www.hdfcfund.com/
5) http://mutualfund.birlasunlife.com
6) http://reliancemutual.com/
7) http://investopedia.com
8) http://money.rediff.com
9) http://moneycontrol.com