COMPARATIVE ANALYSIS OF MUTUAL FUNDS

MUTUAL FUND OPERATION FLOW CHART

TYPES OF MUTUAL FUNDS SCHEMES According to Maturity Period Open Ended Close Ended According to Investment Objective iented Schemes Balanced Scheme Growth/Equity Oriented Scheme Income / Debt Or

INSTRUMENTS OF INVESTMENT EQUITY CONVERTIBLE DEBENTURES

FIXED INCOME SECURITIES

SHORT TERM SECURITIES

Facilities Provided by Mutual Funds to the Investors

Systematic Investment Plan (SIP) Systematic Withdrawal Plan (SWP) Systematic Tra nsfer Plan (STP) Dividend Transfer Plan (DTP) Auto debit facility and Electronic Clearing Service (ECS) Switching

INTRODUCTION TO THE ORGANIZATION

SHAREKHAN BACKGROUND Retail broking arm of the Mumbai based SSKI group. Established in 1922 Share kha n's ground network includes over 700+ Share shops in 130+ cities in India. SSKI group ventured into institutional broking and corporate finance 18 years ago.

OBJECTIVES OF THE STUDY The present study focuses on the comparative analysis of mutual funds schemes pe rformance. To evaluate the schemes on the basis of risk and return by calculatin g Beta, Alpha, Standard Deviation.

RESEARCH METHEDOLOGY TYPE OF RESEARCH -- Descriptive cum Analytical research has been used because the researcher has no control over the variables. He can o nly report what has happened or what is happening. . In Analytical Research, the researcher has to use facts and information already available and make an analy sis on the basis of these only.

DATA COLLECTION The data has been collected from the secondary sources i.e. -- Fact sheets -- An nual Reports -- Offer Documents NAVs of selected schemes and closing values of S &P CNX 500 have been noted from www.amfindia.com and Mutual Fund Houses Personal Sites.

SAMPLE & SAMPLING TECHNIQUE

SAMPLE SIZE: 7 Schemes of 4 Mutual Fund Companies namely Franklin Templeton, Rel iance, HDFC and ICICI Prudential has been selected. SAMPLING TECHNIQUE: In the p resent study Convenience Sampling technique has been used.

DATA ANALYSIS AND FINDINGS The following parameters have been chosen for comparison: Fund Objective Fund St yle Fund Details History Portfolio Characteristics Sectoral Allocation Portfolio Concentration Performance Analysis

Following Tests have been applied: BETA ALPHA STANDARD DEVIATION

BETA

A Beta is a measure of risk. It compares a mutual funds volatility with that of a benchmark. If the beta of the stock is 1, it means that the returns in the stoc k are highly correlated to the benchmark index. If Beta is greater than 1, it me ans the stock is more volatile. If Beta is less than 1, than the stock is less v olatile.

COMPARATIVE ANALYSIS (BETA) LARGE CAP FUND 0.96 0.94 0.92 0.9 0.88 0.86 0.84 Franklin HDFC PRU ICICI Reliance India TOP 200 Growth Vision Bluechip BETA

MID CAP FUND 1 0.98 0.96 0.94 0.92 0.9 0.88 0.86 0.84 BETA F ranklin Prim a HC DF C apital Builder R eliance Growth

ALPHA Alpha is a financial term describing that part of an investors return that is due to the skills of the investment manager, as distinct from the return of the mar ket as a whole. i < rf: the m n ger or firm h s destroyed v lue i = rf: the m n ge r or firm h s neither cre ted nor destroyed v lue i > rf: the m n ger or firm h s cre ted v lue

LARGE CAP FUNDS 5 4 .5 4 3 .5 3 2 .5 2 1 .5 1 0 .5 0 AL H PA F nk r lin H F D C P U IC I R li R IC e nce Indi T OP 2 0 G 0 row th V ion is B chip lue

HF DC Cp l

it B ild r ue R li

MID CAP FUNDS 6 5 4 3 2 1 0 -1 -2 -3 F n lin r k P rim e ne G row th AP A LH

STANDARD DEVIATION The tot l risk of given fund is me sured in terms of st nd rd devi tion. lls us how much the v lues h ve devi ted from the me n of the v lues.

It te

STANDARD DEVIATION LARGE CAP FUNDS 26 25.5 25 24.5 24 23.5 23 22.5 22 21.5 S TANDARD DEVIATION F r nklin HDF TOP PRU IC I Reli nce C IC Indi

200 Growth Vis ion Bluechip

MID CAP FUNDS 29 28 27 26 25 24 23 22 F r nklin HDF Reli nce C Prim C pit l Growth Builder S TANDARD DEVIATION

FINDINGS ICICI PRU--This fund h s n ggressive stock-picking style, but with c reful e ye on risk control. -The fund h s gre t exposure to b nking nd softw re secto r stocks. FRANKLIN TEMPLETON - Fr nklin Indi Blue-chip fund is one of the bigges t diversified equity funds nd is one of the most preferred l rge c p funds. - O ne of the stonishing fe tures of the funds investment style is the buy- nd holdstr tegy.

RELIANCE -High returns c n be expected from this fund but its ggressiveness doe s not m ke it pt for conserv tive investors. HDFC -The fund s exposure to l rge -c p stocks is cushion in the f lling m rkets. It h s not been top performer s some of the other mid-c p funds, but quite consistent one -This fund is good bet for those w nting to invest in mid-c ps but not willing to t ke too muc h of risk.

CONCLUSIONS

Best option consider by the investors when it comes to Mutu l Funds. This industry is growing t good p ce. Funds is s fe. Investors who re looking for very high unds re not recommended; they re me nt for investors sting.

investing their money in Money Invested in Mutu l inst nt returns, mutu l f committed to p tient inve

RECOMMENDATIONS Following suggestions c n be m de so th t the mutu l fund houses c n design thei r schemes in such m nner th t it c n improve their perform nce s comp red to other AMCs. A thorough n lysis should be done while selecting the securities for p rticul r portfolio. Fund ment l security n lysis should lso be done i.e. the rel tionship between securitys return nd economy wide events.

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