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A Study of Performance of Mutual Fund Schemes - Document Transcript

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 NAV’s and application of statistical tools 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
don’t 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 don't 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 consider your 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
from the 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 management’sSecond 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
Insurance Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund
established 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 mutual fund 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 of assets 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 was bifurcated 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 is registered 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 taking place
among different private sector funds, the mutual fund industry has entered its current 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 manager’s 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: It’s
Compounded Annualized Returns of last 5 years is 24.5%. 2) Reliance Large Cap Fund: It’s
Compounded Annualized Returns of last 5 years is 22.6%. 3) Franklin India Blue Chip: It’s
Compounded Annualized Returns of last 5 years is 20.7%. 4) Kotak 30: It’s Compounded
Annualized Returns of last 5 years is 19%. 5) DSPML Top 100 Equity: It’s 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: It’s
Compounded Annualized Returns of last 5 years is 29.2%. 2)Sundaram select mind cap fund
(G): It’s Compounded Annualized Returns of last 5 years is 24.8%. 3) Reliance Growth: It’s
Compounded Annualized Returns of last 5 years is 23%. 4) Birla Sun life mid cap fund: It’s
Compounded Annualized Returns of last 5 years is 21.9%. 5) L&T mid cap fund: It’s
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. It’s 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): It’s Compounded Annualized Returns of last 5 years is 27.8%. 2) Reliance Banking fund
(G): It’s Compounded Annualized Returns of last 5 years is 25.7%. 3) Reliance Pharma (G): It’s
Compounded Annualized Returns of last 5 years is 25.4%. 4) ICICI Prudential infrastructure
fund (G): It’s Compounded Annualized Returns of last 5 years is 20.5%. 5) UTI Banking sector
fund (G): It’s 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): It’s Compounded
Annualized Returns of last 5 years is 26.9%. 2) Reliance regular saving fund-Equity growth: It’s
Compounded Annualized Returns of last 5 years is 26% return. 3) HDFC Top 200- Growth: It’s
Compounded Annualized Returns of last 5 years is 21.5%. 4) HDFC Equity fund (G): It’s
Compounded Annualized Returns of last 5 years is 21.3%. 5) Birlasunlife frontline Equity fund:
It’s 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 India’s leading Mutual Fund
with Quarter Average Assets under management (AAUM) of Rs 102066Crores.Reliance Mutual
Fund, a part of the Reliance - Anil Dhirubhai Ambani Group, is one of the fastest growing
mutual funds in the country. RMF offers investors a well-rounded portfolio of products to meet
varying investor requirements and has presence in 159 cities across the country. Reliance Mutual
Fund constantly endeavors to launch innovative products and customer service initiatives to
increase value to investors. "Reliance Mutual Fund schemes are managed by Reliance Capital
Asset 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 primary investment
objective of the Scheme is to seek to generate continuous returns by actively investing in equity
and equity related or fixed income securities of companies 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-
Aug’8, 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. for managing the schemes of UTI Mutual Fund. UTIAMC provides
professionally managed back office support for all business services of UTI Mutual Fund in
accordance 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 the manager and marketer to offshore funds through its 100 % subsidiary,
UTI International 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 of schemes catering to the needs of every class of citizens. It has a
nationwide network consisting 148 UTI Financial Centers (UFCs) and UTI International offices
in London, Dubai and Bahrain.UTIAMC has a well-qualified, professional fund management
team, which has been fully empowered to manage funds with greater efficiency and
accountability in the sole interest of the unit holders.UTIMF has consistently reset and upgraded
transparency standards. All the branches, UFCs and registrar offices are connected on a robust IT
network to ensure cost-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
the sectors 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]: It’s aims to provide to
investors growth of capital over a period of time by investing in mid cap stock ,as well as to
make periodical distribution of income from investment in stocks of respective 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 India’s largest bank sponsored mutual fund
and has a track record in judicious investments and consistent wealth creation. The fund traces its
lineage to SBI - India’s 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 world’s leading fund management companies 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 generation expertise of the Mutual Fund.Today, the fund manages over
Rs. 42,100 crores of assets and has a diverse profile of investors 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
investor service 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 investor’s 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 provide investors long term capital appreciation along with the
liquidity of an open-ended scheme. The scheme will invest in a diversified portfolio of equities
of high growth companies.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 provide investors with
opportunities for long term growth in capital along with the liquidityof an open ended scheme by
investing predominantly in a well diversified basket of equity 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 the world based at San Mateo, California USA.
The group has US$ 642.3 billion in assets under management globally.Franklin Templeton has
offices in 33 locations across India and manages average AUM 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 Mutual Fund are:4.4.1 FRANKLIN TEMPLETION FMCG FUND
[under Sector Fund]: The scheme aims to achieve long term capital appreciation through
exclusively investing in 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 wave that
commenced operations in 1993-94.It is a part of JM Financial Group , which has a rich heritage,
built over three decade.

30. 30Groups origins can be traced back to the 1950s when the Kampani family began to get
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 Fund
offers a bouquet of funds that caters to the diverse needs of both its institutional and individual
investors.It’s mission is to manage risk effectively while generating top quartile returns across all
product categories. We believe that to cultivate investor loyalty, we must provide a safe haven
for their investments. We are focussed on helping our investors realize their investment goals
through prudent advice, judicious fund management, accurate research, 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 to
provide long term capital appreciation from a portfolio that is invested predominantly 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 the Scheme
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 investment objective of the Scheme is to provide
capital appreciation by primarily investing in small 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 venture between 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 Indian market and Sun Lifes global experience.Birla Sunlife Mutual Fund is established in
1994 .It offer a range of investment options, including diversified and sector specific equity
schemes, fund of fund schemes, hybrid and monthly income funds, a wide range of debt and
treasury products and offshore funds. BSLAMC is one of the largest team of research analysts in
the industry, dedicated to tracking down the best companies to invest in.BSLAMC strives to
provide transparent, ethical and research-based investments and wealth 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 achieve long-term
growth of capital through investments mainly in equity and equity related instruments. 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 investing predominantly in equity and
equity related securities of companies considered to be small and mid cap. It may also invest a
certain portion of its corpus in fixed income securities including money market instruments, in
order to meet liquidity requirements 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 complete financial solutions that encompass every sphere of life.
From commercial banking, to stock broking, to mutual funds, to life insurance, to investment
banking, the group caters to the financial needs of individuals and corporate.The group has a net
worth of Rs.7,911 crore and employs around 20,000 employees across its various businesses,
servicing around 7 million customer accounts through a distribution network of 1,716 branches,
franchisees and satellite offices across more than 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 owned subsidiary of KMBL, is the
Asset Manager for Kota Mahindra Mutual Fund(KMMF). KMAMC started operations in
December 1998 and has over 10 Lac investors in various schemes. KMMF offers schemes
catering to investors with varying risk - return profiles and was the first fund house in the
country to launch a dedicated gilt scheme investing only in government securities.The schemes
that I have taken for analysis from KOTAK MAHINDRA Mutual Fund are:4.7.1 KOTAK
MAHINDRA MID CAP FUND [under mid cap Fund]: The investment objective of Kotak
Midcap is to generate capital appreciation from a diversified portfolio of equity & equity related
securities. The scheme predominantly invests in companies in the mid market capitalization
segment across sectors. The scheme is well positioned to provide the benefit of potential growth
offered by mid cap 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-term capital 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 as one, is the heart of our business belief.Being
in the financial sector for a long time has given us a great understanding of the Indian economy
and that guides us while picking the companies for its Funds. Once it unearth a potential
opportunity, it’s Financial Experts spend countless time to research the companies, to see what
will deliver the best returns for your money. Its financial experts are fine tuned to the larger
global picture and all its complexities as well as the intricacies of the Indian market. We track
global economic trends and market behaviour to better understand the domestic markets. We are
constantly on the trail of promising opportunities and once identified, a new theme is thoroughly
researched and tested on various platforms before being offered to the investing public. The
schemes that I have taken for analysis from SUNDARAM BNB PARIBAS Mutual 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 capital appreciation 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. 374.8.2 SUNDARAM BNB PARIBAS SELECT SMALL CAP FUND(G)[small cap fund]:
The primary investment objective of the scheme is to generate consistent long-term returns by
investing predominantly in equity/equity related instruments of companies 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 Ramanathan 4.8.3 SUNDARAM BNB PARIBAS GROWTH FUND (G)[under
Diversified fund]: It seeks to achieve capital appreciation by investing in a well diversified
basket of equities and equity-related instruments. Income generation would be the secondary
consideration. 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 the investment needs of investors through a suite of acclaimed mutual fund
schemes.With world class investment management practices and an equally competent fund
management team, L&T Mutual Fund helps its investors reach their financial goals.Whether you
are an individual investor, institution, or finance professional, you can gain from the products
and expertise that we offer.L&T Mutual Fund is backed by one of the most trusted and valued
brands, L&T Finance – incorporated as Non Banking Finance Company in November 1994, has
earned the trust of thousands of investors by adapting well to the changing marketing dynamics
and emerging as a profitable venture despite the turbulences in the Financial 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 to generate long term capital
appreciation by investing predominantly in equity and equity 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 consistent performance 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 offers an investment option for everyone, whether you are a
businessman or salaried professional, a retired person or housewife, an aggressive investor or a
conservative capital builder.The Tata Asset Management philosophy is centered on seeking
consistent, long-term results. Tata Asset Management aims at overall excellence, within the
framework of transparent and rigorous risk controls. Tata Mutual Fund offers investors a broad
range of managed investment products in various asset classes and risk parameters, with
operational flexibility to suit their varied investment needs.It offer a wide range of services to
assist investors have a fulfilling and rewarding financial planning experience with us. It have
designed our services keeping in mind the needs of our investors, giving them a smooth and
hassle-free financial planning process.The schemes that I have taken for analysis from TATA
Mutual Fund are:1.10.1 TATA DIVIDENT YIELD FUND (G) [under Diversified fund]: To
Provide 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 the Companies Act, 1956, on December 10, 1999, and was approved to act as
an Asset Management 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 the HDFC
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-ended schemes 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 Term Equity 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 generate long term capital appreciation by investing in a portfolio of equities and
equity linked 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 was incorporated 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 through mutual funds and sub-advised portfolios. Its product portfolio is managed by
individually focused management teams to create optimum balance and results. They are
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 business in 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 HDFC Yr/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 Schemes INTERPRETATIONS: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 Deviation Yrs/Schemes Tata Kotak Reliance Sundaram HDFC Dividend
Equity Diversified Balance fund TOP 200 yield FOF power Last 1 yrs 0.071419205 0.09292427
0.101266115 0.068953248 0.0932788
45. 45 Last 3 yrs 0.099664831 0.09966483 0.111054683 0.082246954 0.0968572 Last 5 yrs
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 last 3 yrs 0 last 5 yrs Tata divident Kotak Equity
Reliance Sundaram HDFC yield FOF diversified balance fund TOP 200 power Schemes
INTERPRETATIONS: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 3 years, again Reliance has high
Standard Deviation about 0.011 followed by Kotak and Tata by 0.09 both.c) But in last 5 yrs,
Kotak is highly volatile followed by Reliance and Tata.3) Beta Yrs
Schemes Tata Kotak Reliance Sundaram HDFC Dividend Equity Diversified Balance fund TOP
200 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 last 3 yrs 0 last 5 yrs -0.2 Tata Kotak Reliance Sundaram HDFC divident
Equity FOF diversified balance TOP 200 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 TOP 200 Dividend Equity Diversified Balance
47. 47 yield FOF power fund Last 1 yrs 2.82288 1.92184 1.941195962 1.78291329 2.189613153
yrs 0.54053 0.36523 0.75575441 0.34489246 0.551588391 Last 5 yrs 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 last 3
yrs 0 Tata divident Kotak Equity Reliance Sundaram HDFC last 5 yrs yield FOF diversified
balance fund TOP 200 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. 48 Yr/Schemes Reliance Franklin UTI SBI Reliance Banking(G) FMCG(G)
infrastructure(G) magnum Media&Ent(G) Pharma(G) Last 1 yrs 120.55 68.57 66.77 112.96
18.94 Last 3 yrs 30.21 17.52 10.89 3.61 2.07 Last 5 yrs 25.37 21.73 23.23 12.31 88.77 CAGR
140 Percentage(%) 120 100 80 60 40 20 0 last1 yrs last 3 yrs last 5 yrs Schemes
INTERPRETATIONS: a) In last 1 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
Performance Analysis of Mutual Funds in India

By

Prof. P. Aranganathan
MBA, PhD
H.O.D. of Management Studies
Mr. M. Arun Kumar
MBA
Dept. of Management Studies
MIET Engineering College
Trichy - Tamil Nadu

ABSTRACT

In a growing country like India, capital market plays an important role to stabilize the Economic growth,
strengthen industrial performance, and provide various investment avenues to the investors to help the
various industries and to ensure the profitable return. Among various financial products, mutual fund
ensures the minimum risks and maximum return to the investors, its having own policies, terms
conditions that are different from other products, so the market volatilization will not make more effect in
return. According to the Global Asset Management 2006 Report from Boston Consulting Group, India-
managed assets will exceed more than $1 trillion by 2015. This means an annual growth rate of 21% for
the next nine years. The Indian mutual funds industry has been growing at a healthy pace of 16.68 per
cent for the past eight years and the trend will move further as has been emphasized by the report. With
the entrance of new fund houses and the introduction of new funds into the market, investors are now
being presented with a broad array of Mutual Fund choices. The total asset under management of Mutual
Fund industry rose by 9.45% from Rs.309953.04 crores to 339232.46 crores in November, 2006 as
published by AMFI. In 1987, its size was Rs.1,000 crores, which went up to Rs. 4,100 crores in 1991 and
subsequently touched a figure of Rs.72,000 crores in 1998. Since then this figure has been increasing
tremendously and thus revealing the efficiency of growth in the mutual fund industry. It has generally
been observed that as the GDP. Here the author discussed about performance measures of mutual
funds.

INTRODUCTION

There are a lot of investment avenues available today in the financial market for an investor with an
investable surplus. He can invest in Bank Deposits, Corporate Debentures, and Bonds where there is low
risk but low return. He may invest in Stock of companies where the risk is high and the returns are also
proportionately high. The recent trends in the Stock Market have shown that an average retail investor
always lost with periodic bearish tends. People began opting for portfolio managers with expertise in
stock markets who would invest on their behalf. Thus we had wealth management services provided by
many institutions. However they proved too costly for a small investor. These investors have found a
good shelter with the mutual funds.

The Indian mutual funds industry is witnessing a rapid growth as a result of infrastructural development,
increase in personal financial assets, and rise in foreign participation. With the growing risk appetite,
rising income, and increasing awareness, mutual funds in India are becoming a preferred investment
option compared to other investment vehicles like Fixed Deposits (FDs) and postal savings that are
considered safe but give comparatively low returns, according to "Indian Mutual Fund Industry". Mutual
fund industry has seen a lot of changes in past few years with multinational companies coming into the
country, bringing in their professional expertise in managing funds worldwide. In the past few months
there has been a consolidation phase going on in the mutual fund industry in India. Now investors have a
wide range of Schemes to choose from depending on their individual profiles. In this research paper the
authors have discussed the growth of mutual funds in India, latest trends, global scenarios and also
analyzed top ten prominent mutual funds schemes.

What is mutual fund?

A mutual fund is just the connecting bridge or 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 you invest in a mutual fund, you are buying units or portions of the mutual fund and thus on
investing becomes a shareholder or 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.

GROWTH OF MUTUAL FUNDS IN INDIA

The Indian Mutual Fund has passed through three phases. The first phase was between 1964 and 1987
and the only player was the Unit Trust of India, which had a total asset of Rs. 6,700 crores at the end of
1988. The second phase is between 1987 and 1993 during which period 8 Funds were established (6 by
banks and one each by LIC and GIC). The total assets under management had grown to 61,028 crores at
the end of 1994 and the number of schemes was 167.

The third phase began with the entry of private and foreign sectors in the Mutual Fund industry in 1993.
Kothari Pioneer Mutual Fund was the first Fund to be established by the private sector in association with
a foreign Fund.

As at the end of financial year 2000(31st march) 32 Funds were functioning with Rs. 1, 13,005 crores as
total assets under management. As on august end 2000, there were 33 Funds with 391 schemes and
assets under management with Rs 1, 02,849 crores.

The securities and Exchange Board of India (SEBI) came out with comprehensive regulation in 1993
which defined the structure of Mutual Fund and Asset Management Companies for the first time. Several
private sectors Mutual Funds were launched in 1993 and 1994. The share of the private players has risen
rapidly since then. Currently there are 34 Mutual Fund organizations in India managing 1,02,000 crores.

Major types of mutual funds

Each fund has a predetermined investment objective that tailors the fund's assets, regions of investments
and investment strategies. At the fundamental level,there are three varieties of mutual funds:

1) Equity funds (stocks)


2) Fixed-income funds (bonds)
3) Money market funds

All mutual funds are variations of these three asset classes. For example, while equity funds that invest in
fast-growing companies are known as growth funds, equity funds that invest only in companies of the
same sector or region are known as specialty funds.

Let's go over the many different flavors of funds. We'll start with the safest and then work through to the
more risky.

Money Market Funds

The money market consists of short-term debt instruments, mostly Treasury bills. This is a safe place to
park your money. You won't get great returns, but you won't have to worry about losing your principal. A
typical return is twice the amount you would earn in a regular checking/savings account and a little less
than the average certificate of deposit (CD).

Bond/Income Funds

Income funds are named appropriately: their purpose is to provide current income on a steady basis.
When referring to mutual funds, the terms "fixed-income," "bond," and "income" are synonymous. These
terms denote funds that invest primarily in government and corporate debt. While fund holdings may
appreciate in value, the primary objective of these funds is to provide a steady cash flow to investors. As
such, the audience for these funds consists of conservative investors and retirees.

Bond funds are likely to pay higher returns than certificates of deposit and money market investments,
but bond funds aren't without risk. Because there are many different types of bonds, bond funds can vary
dramatically depending on where they invest. For example, a fund specializing in high-yield junk bonds is
much more risky than a fund that invests in government securities. Furthermore, nearly all bond funds
are subject to interest rate risk, which means that if rates go up the value of the fund goes down.

Balanced Funds

The objective of these funds is to provide a balanced mixture of safety, income and capital appreciation.
The strategy of balanced funds is to invest in a combination of fixed income and equities. A typical
balanced fund might have a weighting of 60% equity and 40% fixed income. The weighting might also be
restricted to a specified maximum or minimum for each asset class.

A similar type of fund is known as an asset allocation fund. Objectives are similar to those of a balanced
fund, but these kinds of funds typically do not have to hold a specified percentage of any asset class. The
portfolio manager is therefore given freedom to switch the ratio of asset classes as the economy moves
through the business cycle.

Equity Funds

Funds that invest in stocks represent the largest category of mutual funds. Generally, the investment
objective of this class of funds is long-term capital growth with some income. There are, however, many
different types of equity funds because there are many different types of equities. A great way to
understand the universe of equity funds is to use a style box, an example of which is below.
Factors to be considered before invest in mutual funds:

1. Market risk
2. Inflation rate
3. Credit risk
4. Interest rate risk
5. Stability of the political environment
6. The diversification in the portfolio
7. Returns in the NAV after risk adjustment
8. Size of the asset
9. Liquidity offered.

RESEARCH DESIGN OF THE STUDY

PERIOD OF STUDY

The growth oriented schemes, which have been floated by the selected funds during the period March
2011 to February2012, have been considered for the purpose of the study. Monthly Net Asset Value
(NAV) as declared by the relevant mutual funds from March 2011 of a particular scheme to February2012
has been used for the purpose. Any missing value for the scheme and for the index series has been
excluded to equalise the two.

SELECTION OF FUNDS FOR PERFORMACE EVALUATION

Following funds have been selected to study the performance of mutual funds:

S.NO Selected mutual funds


1 Reliance Gold Exchange Traded Fund - Dividend
2 SBI Gold Exchange Traded Scheme
3 UTI Gold Exchange Traded Fund
4 Quantum Gold Exchange Traded Fund - Growth
5 Kotak Gold ETF
6 Religare Gold Exchange Traded Fund
7 HDFC Gold Exchange Traded Fund
8 Axis Gold ETF
9 ICICI Prudential Gold Exchange Traded Fund
10 GS Gold BeES

SCHEME SELECTION

For the purpose of this study, only growth schemes of the funds selected for which NAV values are
available have been considered for studying the performance.

ANALYSIS OF MUTUAL FUNDS SCHEMES

Basis for Analysis

Net Asset Value (NAV) is the best parameter on which the performance of a mutual fund can be studied.
We have studied the performance of the NAV based on the compounded annual return of the Scheme in
terms of appreciation of NAV, dividend and bonus issues. WE have compared the Annual returns of
various schemes to get an idea about their relative standings.

VALUATION OF MUTUAL FUND

The net asset value of the Fund is the cumulative market value of the assets Fund net of its liabilities. In
other words, if the Fund is dissolved or liquidated, by selling off all the assets in the Fund, this is the
amount that the shareholders would collectively own. This gives rise to the concept of net asset value per
unit, which is the value, represented by the ownership of one unit in the Fund. It is calculated simply by
dividing the net asset value of the Fund by the number of units. However, most people refer loosely to
the NAV per unit as NAV, ignoring the "per unit". We also abide by the same convention.

Calculation of NAV

The most important part of the calculation is the valuation of the assets owned by the Fund. Once it is
calculated, the NAV is simply the net value of assets divided by the number of units outstanding. The
detailed methodology for the calculation of the net asset value is given below.
The net asset value is the actual value of a unit on any business day. NAV is the barometer of the
performance of the scheme.

The net asset value is the market value of the assets of the scheme minus its liabilities and expenses.
The per unit NAV is the net asset value of the scheme divided by the number of the units outstanding on
the valuation date.

TABLE-1 Showing list of mutual fund schemes studied for the study

Rank Scheme Name Date NAV (Rs.) Last 12


Months
1 Reliance Gold Exchange Traded Fund - Feb 13 , 2012 2620.37 36.18
Dividend
2 SBI Gold Exchange Traded Scheme Feb 13 , 2012 2743.9 36.17
3 UTI Gold Exchange Traded Fund Feb 13 , 2012 2692.31 36.11
4 Quantum Gold Exchange Traded Fund - Feb 13 , 2012 1339.03 36.09
Growth
5 Kotak Gold ETF Feb 13 , 2012 2690.9 36.08
6 Religare Gold Exchange Traded Fund Feb 13 , 2012 2766.17 36.05
7 HDFC Gold Exchange Traded Fund Feb 13 , 2012 2745.87 35.78
8 Axis Gold ETF Feb 13 , 2012 2743.81 35.49
9 ICICI Prudential Gold Exchange Traded Feb 13 , 2012 2762.94 35.48
Fund
10 GS Gold BeES Feb 13 , 2012 2680.38 35.46

Top 10 Funds - Period (Last 12 Months) NAV VALUE


Since the inception rate the NAV has been increased upto78.85rs in ICICI Prudential FMCG -
Growth because, ICICI is having 65% of online trading through icicidirecttrading.com, followed by
Reliance Gold Exchange Traded Fund - Dividend stands in 2nd rank comparing in last 12 months. But
ICICI Prudential Gold Exchange Traded Fund stands in last rank, because it only have increased small
level from inception point.

Calculation of risk and return

Risk and return has to be calculated and measured by company and concerned board to provide proper
instructions, guidelines about mutual funds schemes to investors to help them to avoid unnecessary
risks. Here the risk and return have been analyzed on leading mutual schemes with the help of statistical
tools such as mean, standard deviation, sharpie ratio, beta, and correlation.

RISK AND RETURN

Inception Scheme Name Type Mean SD Sharpie BETA Correlation


Date Ratio
Nov 21, 2011 Reliance Gold Open ended 0.44 2.71 0.12 1.06 1.10
Exchange Traded
Fund - Dividend
May 18,2009 SBI Gold Exchange Open ended 0.49 2.12 0.19 1.02 0.87
Traded Scheme
April 10,2007 UTI Gold Exchange Open ended 0.45 2.72 0.13 1.06 1.11
Traded Fund
Feb 22,2008 Quantum Gold Open ended 0.45 2.70 0.13 1.06 1.10
Exchange Traded
Fund - Growth
July 27,2007 Kotak Gold ETF Open ended 0.47 2.70 0.14 1.06 1.09
March 12, Religare Gold Open ended 0.59 2.21 0.22 1.01 0.91
2010 Exchange Traded
Fund
Aug 13, 2010 HDFC Gold Open ended 0.59 2.29 0.21 1.00 0.93
Exchange Traded
Fund
Nov 10,2010 Axis Gold ETF Open ended 0.58 2.48 0.19 1.10 1.03
Aug 24, 2010 ICICI Prudential Open ended 0.56 2.33 0.20 1.00 0.95
Gold Exchange
Traded Fund
March 8, 2007 GS Gold BeES Open ended 0.45 2.71 0.13 0.00 NA

CALCULATION OF BETA

*here the SBI Magnum Sector Fundsscheme has been ranked as leading scheme because all the
measures shown a positive results, followed by HDFC balanced fund scheme, which plays 2 nd leading
with a mean of 0.39. IDFC nifty fund scheme is in dangerous because all the measures show a negative
result