You are on page 1of 61

COMPARATIVE ANALYSIS OF ICICI MF AND UTI MF

In partial fulfillment of the requirements for Master of Management Studies (MMS)

Submitted By ASOK.K.A MMS - FINANCE ROLL NO: 1135 Batch of 2010-12 Project Guide

ORIENTAL INSTITUTE OF MANAGEMENT, PLOT NO -149 Sector 12, Navi Mumbai - 400703

ACKNOWLEDGEMENT

CERTIFICATE

This is to certify that Mr. Asok.K.A Roll no 1135 is a full time bonafide student of Oriental Institute of Management and pursuing Masters Of Management Studies (MMS). The project report Title is COMPARATIVE ANALYSIS OF ICICI MF AND UTI MF completed by him/her under the guidance of Mrs. , in the partial fulfillment of the requirements for the award of the degree of Master in Management Studies of Mumbai University is an original work done.

________________________ (Signature of Director) Guide) Oriental Institute of Management Vashi , Navi Mumbai 400703

____________________ (Signature of Project

DECLARATION

INDEX

Sr. No.

Contents

Page no.

Introduction

Company Profile

11

Objectives Of The Study

21

Research Methodology

22

Analysis of Data

23

Mutual Fund Risk Analysis

54

Conclusion & Suggestions

58

Limitation Of The Study

60

Reference

61

INTRODUCTION MUTUAL FUND A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests it in stocks, bonds, short-term money market instruments and other securities. Mutual funds have a fund manager who invests the money on behalf of the investors by buying / selling stocks, bonds etc. Currently, the worldwide value of all mutual funds totals more than $US 26 trillion. There are various investment avenues available to an investor such as real estate, bank deposits, post office deposits, shares, debentures, bonds etc. A mutual fund is one more type of Investment Avenue available to investors. There are many reasons why investors prefer mutual funds. Buying shares directly from the market is one way of investing. But this requires spending time to find out the performance of the company whose share is being purchased, understanding the future business prospects of the company, finding out the track record of the promoters and the dividend, bonus issue history of the company etc. An informed investor needs to do research before investing. However, many investors find it cumbersome and time consuming to pore over so much of information, get access to so much of details before investing in the shares. Investors therefore prefer the mutual fund route. They invest in a mutual fund scheme which in turn takes the responsibility of investing in stocks and shares after due analysis and research. The investor need not bother with researching hundreds of stocks. It leaves it to the mutual fund and its professional fund management team. Another reason Why investors prefer mutual funds is because mutual funds offer diversification. An investors money is invested by the mutual fund in a variety of shares, bonds and other securities thus diversifying the investors portfolio across different companies and sectors. This diversification helps in reducing the overall risk of the portfolio. It is also less expensive to invest in a mutual fund since the minimum investment amount in mutual fund units is fairly low (Rs. 500 or so). With Rs. 500 an investor may be able to buy only a few stocks and not get the desired diversification. These are some of the reasons why mutual funds have gained in popularity over the years. Indians have been traditionally savers and invested money in traditional savings instruments such as bank deposits. Against this background, if we 6 look at approximately Rs. 7 lakh

crores1 which Indian Mutual Funds are managing, then it is no mean an achievement. A country traditionally putting money in safe, risk-free investments like Bank FDs, Post Office and Life Insurance, has started to invest in stocks, bonds and shares thanks to the mutual fund industry. However, there is still a lot to be done. The Rs. 7 Lakh crores stated above includes investments by the corporate sector as well. Going by various reports, not more than 5% of household savings are channelized into the markets, either directly or through the mutual fund route. Not all parts of the country are contributing equally into the mutual fund corpus. 8 cities account for over 60% of the total assets under management in mutual funds. These are issues which need to be addressed jointly by all concerned with the mutual fund industry. Market dynamics are making industry players to look at smaller cities to increase penetration. Competition is ensuring that costs incurred in managing the funds are kept low and fund houses are trying to give more value for money by increasing operational efficiencies and cutting expenses. As of today there are around 40 Mutual Funds in the country. Together they offer around 1051 schemes2 to the investor. Many more mutual funds are expected to enter India in the next few years. All these developments will lead to far more participation by the retail investor and ample of job opportunities for young Indians in the mutual fund industry. This module is designed to meet the requirements of both the investor as well as the industry professionals, mainly those proposing to enter the mutual fund industry and therefore require a foundation in the subject. Investors need to understand the nuances of mutual funds, the workings of various schemes before they invest, since their money is being invested in risky assets like stocks/ bonds (bonds also carry risk). The language of the module is kept simple and the explanation is peppered with concept clarifiers and examples. Let us now try and understand the characteristics of mutual funds in India and the different types of mutual fund schemes available in the market.

In this project analyze the performance of ICICI MF and UTI MF, and I selected equity fund and balanced fund of above companies. EQUITY FUND A mutual fund that invests principally in stocks. It can be actively or passively (index fund) managed, also known as a "stock fund".

Stock mutual funds are principally categorized according to company size, the investment style of the holdings in the portfolio and geography: Size is determined by a company's market capitalization, while the investment style, reflected in the fund's stock holdings, is also used to categorize equity mutual funds. Stock funds are also categorized by whether they are domestic (U.S.) or international. These can be broad market, regional or single-country funds. There are so-called "specialty" stock funds that target business sectors such as healthcare, commodities and real estate. Equity mutual funds are also known as stock mutual funds. Equity mutual funds invest pooled amounts of money in the stocks of public companies. Stocks represent part ownership, or equity, in companies, and the aim of stock ownership is to see the value of the companies increase over time. Stocks are often categorized by their market capitalization (or caps), and can be classified in three basic sizes: small, medium, and large. Many mutual funds invest primarily in companies of one of these sizes and are thus classified as large-cap, mid-cap or small-cap funds. Equity fund managers employ different styles of stock picking when they make investment decisions for their portfolios. Some fund managers use a value approach to stocks, searching for stocks that are undervalued when compared to other similar companies. Another approach to picking is to look primarily at growth, trying to find stocks that are growing faster than their competitors, or the market as a whole. Some managers buy both kinds of stocks, building a portfolio of both growth and value stocks. Since equity funds invest in stocks, they have the potential to generate more returns. On the other hand they carry greater risks too. Equity funds can be classified into diversified equity funds and sectoral equity funds. How to Select an Equity Fund Compare a fund with its peers: One of the basic fundamental of benchmarking is to evaluate funds with in the same category. For example, if you are evaluating the performance of a thematic

fund, say IT based fund, then you should compare its performance with another similar IT based fund. Comparing it with banking sector fund for example will not give the correct picture. Comparing a fund over stock market cycle (boom and bust) will give investors a good idea about how the fund has fared. Compare returns against those of the benchmark index: Every fund mentions a benchmark index in the Offer Document. It can be BSE 100, BSE 200, Nifty or any other index. The benchmark index serves as a guidepost for both the fund manager and the investor. Compare how the fund has fared against the benchmark index over a period of 3-5 years. The funds that have outperformed their benchmark indices during stock market volatility must be given a close look. Compare against the fund's own performance: Apart from comparing a fund with its peers and benchmark index, investors should evaluate its historical performance. By evaluating a fund against its own historical performance, you can get an idea about consistent performers.

BALANCED FUND Balanced fund is also known as hybrid fund. It is a type of mutual fund that buys a combination of common stock, preferred stock, bonds, and short-term bonds, to provide both income and capital appreciation while avoiding excessive risk. Balanced funds provide investor with an option of single mutual fund that combines both growth and income objectives, by investing in both stocks (for growth) and bonds (for income). Such diversified holdings ensure that these funds will manage downturns in the stock market without too much of a loss. But on the flip side, balanced funds will usually increase less than an all-stock fund during a bullmarket. Advantages of Balanced Fund

Generally, balanced funds maintain a 60:40 equity debt ratio. This means that 60% of their total investment is in equity and the balance 40% in debt and cash equivalents. Balance funds combine the power of equities (shares)

and the stability of debt market instruments (fixed return investments like bonds) and provide both income and capital appreciation while avoiding excessive risk. Balanced funds continuously rebalance their portfolios to ensure that the broad asset allocation is not disturbed. Therefore, the profits earned from the stock markets are encashed and invested in low risk instruments. This helps the investor in maintaining the appropriate asset mix, without getting into the hassles of rebalancing the portfolio on their own.

COMPANY PROFILE ICICI AMC ICICI Prudential Asset Management Company Ltd. is a joint venture between ICICI Bank, Indias second largest commercial bank & a well-known and trusted name in the financial services in India, & Prudential Plc, one of the United Kingdoms largest players in the financial services sectors. In a span of over 18 years since inception and just over 13 years of the Joint Venture, the company has forged a position of preeminence as one of the largest Asset Management Companys in the country, contributing significantly towards the growth of the Indian mutual fund industry. The company manages significant Mutual Fund Assets under Management (AUM), in addition to our Portfolio Management Services (PMS) and International Advisory Mandates for clients across international markets in asset classes like Debt, Equity and Real Estate with primary focus on risk adjusted returns. As an Asset Management Company, we have over 18 years of experience and are currently managing a comprehensive range of schemes of more than 46 Mutual fund schemes and a wide range of PMS Products for our investors spread across the country. We service this investor base with our own branch network of around 168 branches and a distribution reach of over 42,000 channel partners. Management Mr.Nimesh Shah- Managing Director & Chief Executive Officer Nimesh Shah joined ICICI Prudential AMC as its Managing Director in July 2007. Nimesh has completed his Chartered Accountancy. Prior to joining ICICI Prudential AMC, Nimesh was Senior General Manager at ICICI Bank and has over 18 years experience in banking and financial services. At ICICI Group, he has handled many responsibilities including project finance, corporate banking and international banking.

He was associated with one of the first batches of senior managers selected to lead the foray of ICICI Bank into the international arena. He led ICICI Banks foray into the Middle-Eastern region and Africa. Mr. B Ramakrishna - Executive Vice President Mr. Raghav Iyengar - National Head Sales and distribution Mr. Kalyan Prasath - Head - Information Technology Mr. Hemant Agarwal - Head - Operations Mr. Ashish Kakkar - Head - Human Resources Mr. Aashish Somaiyaa - Head Retail Business Fund Management Mr. S. Naren - Chief Investment Officer - Equity Mr. Chaitanya Pande - Head Fixed Income Board of Directors: Asset Management Company Ms. Chanda Kochhar - Chairperson Mr. Barry Stowe Mr. Suresh Kumar Mr. Vijay Thacker Mr. Dileep C. Choksi Mr. N.S. Kannan Mr. Nimesh Shah Mr. C. R. Muralidharan Directors of the Trustee Company Mr. M. S. Parthasarthy Mr. M. N. Gopinath Mr. Keki Bomi Dadiseth Mr. Vinod Dhall Mr. Sandeep Batra Awards and Recognition ICICI Prudential AMC has constantly been on the forefront of innovation and has introduced products aligned to meet customer needs leading to a well-diversified product portfolio. As acknowledgment of our efforts , we have received valued recognition from various organizations of international repute. Some of the prominent awards and recognition are:

Bloomberg UTV Financial Leadership Awards 2011

ICICI Prudential AMC received the coveted UTV Bloomberg Financial Leadership Award 2011 for Best Contribution in Investor Education & Category Enhancement of the Year in the mutual fund category. Mr. Nimesh Shah , Managing Director, ICICI Prudential AMC received this prestigious accolade from Honorable Finance Minister, Shri Pranab Mukherjee.

Morning Star Mutual Fund Awards 2011 India Debt Fund House Award 2011 Business World Mutual Fund Awards 2010 ICICI Prudential Discovery Fund adjudged Emerging Leader (Based on past 3year SIP performance) ICICI Prudential Discovery Fund - Insti.1 adjudged Best Equity Fund Mid and Small Cap for the year 2010 Mr Sankaran Naren adjudged Smartest Fund Manager (ICICI Prudential Discovery Fund) for the year 2010 Mr Sankaran Naren adjudged Best Equity Fund Manager (ICICI Prudential Discovery Fund ) for the year 2010

NDTV Profit Mutual Fund Awards 2010 ICICI Prudential Discovery Fund - Category Emerging Leader (Based on past 3-year SIP performance)

Lipper Fund Awards 2010 India ICICI Prudential Dynamic Plan-Growth - Best Fund over 3 Years (Mixed Asset INR flexible) ICICI Prudential Gilt Fund Investment Pl-PF Opt-Gth - Best Fund over 3 & 5 Years (Bond Indian Rupee Government)

UTI AMC WHO WE ARE UTI Mutual Funds aims to deliver consistent and stable returns in the medium to long term. With a fairly lower volatility of fund returns, compared to the broad market, we offer a balanced and well -diversified portfolio based on rigorous inhouse research. OUR PEOPLE Our product portfolio is managed by dedicated management teams to create optimum balance and results. Our key people help us serve you better and grow your money. VISION To be the most preferred Mutual Fund MISSION To make UTI Mutual Fund: The most trusted brand that is admired by all stakeholders The largest and most efficient wealth manager with global presence The best-in-class customer service provider The most preferred employer The most innovative and best wealth creator A socially responsible organisation known for best corporate governance GENESIS January 14, 2003 is when UTI Mutual Fund started to pave its path following the vision of UTI Asset Management Co. Ltd. (UTIAMC), which was appointed by UTI Trustee Co, Pvt. Ltd. for managing the schemes of UTI Mutual Fund and the schemes transferred/migrated from the erstwhile Unit Trust of India. 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 Trust Deed, the SEBI (Mutual Funds) Regulations and the objectives of the schemes. State-of-the-art systems and communications are in place to ensure a seamless flow across the various activities undertaken by UTIMF.

Since February 3, 2004, UTIAMC is also a registered portfolio manager under the SEBI (Portfolio Managers) Regulations, 1993 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. ASSET UNDER MANAGEMENT UTIAMC presently manages a corpus of over Rs 5781734.00 lakhs as on December 31st 2011(source: www.amfiindia.com). 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 Centres (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. The fund managers are ably supported by a strong in-house securities research department. To ensure investors interests, a risk management department is also in operation. RELIABILITY 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. All these have evolved UTIMF to position as a dynamic, responsive, restructured, efficient and transparent entity, fully compliant with SEBI regulations. INVESTMENT PHILOSOPHY UTI Mutual Funds investment philosophy is to deliver consistent and stable returns in the medium to long term with a fairly lower volatility of fund returns compared to the broad market. It believes in having a balanced and well-diversified portfolio for all the funds and a rigorous in-house research based approach to all its investments. It is committed to adopt and maintain good fund management practices and a process based investment management.

UTI Mutual Fund follows an investment approach of giving as equal an importance to asset allocation and sectoral allocation, as is given to security selection while managing any fund. It combines top-down and bottom-up approaches to enable the portfolios/funds to adapt to different market conditions so as to prevent missing an investment opportunity. In terms of its funds performance, UTI Mutual fund aims to remain consistently in the top quartile vis--vis the funds in the peer group. OUR ACHIEVEMENTS AND GROWTH STORY UTI MF has been recognized for its achievements, from innovative funds and exemplary people to its commitment towards dedicated customer service.
28 Feb 2012UTI Mutual Fund Wins 8 ICRA Mutual Fund Awards 2012 - Awarded Star Fund House Of The Year DEBT 07 Feb 2012UTI Mutual Fund has been declared as a winner for Customer & Brand Loyalty in the Mutual Fund Sector

28 Nov 2011UTI Mahila Unit Scheme has been ranked as the Best Fund over a period of five years and has won Lipper Fund Awards 2011- India under the category of Mixed Asset INR Conservative 27 Nov 2011UTI MF has won the Financial Leadership Awards 2011 for Most Innovative Investor Education Initiative Swatantra 26 Nov 2011Mr Amandeep Chopra and Mr. Manish Joshi have been adjudicated as the Best Debt Fund Managers of the Year 2010 25 Nov 2011UTI CCP Advantage Fund has won the Business World - Best Mutual Fund Awards 24 Nov 2011Second time in a row, UTI Mutual Fund has been awarded the Most Investor-Friendly Fund House of the Year 23 Nov 2011Mr Jaideep Bhattacharya, Chief Marketing Officer, UTI AMCs CMO has won MYKM Stars of Industry Youth Icon Award

22 Nov 2011UTI Dividend Yield Fund has been adjudged the Best Large Cap Fund by Morningstar Fund Awards (India) -2011. Source 21 Nov 2011UTI AMC has won the Golden Peacock Innovation Award 2011 for its Investor Education initiative Swatantra 20 Nov 2011UTI AMC has won the Customer and Brand Loyalty Award 2011 for its Investor Education initiative Swatantra. 19 Nov 2011UTI MF wins 2 CNBC TV 18- CRISIL Mutual Funds Awards 2010 18 Nov 2011UTI Mutual Fund wins 7 ICRA Mutual Funds Awards 2010 17 Nov 2011UTI Mutual Fund has won three International Best of the Best Awards-2010 from Asia Asset Management 16 Nov 2011Harsha Upadhyaya has received an Award from Outlook Money Awards -2010 as the Best Fund Manager (Equity) Runner Up 15 Nov 2011UTI MF wins CNBC TV18-CRISIL Award 14 Nov 2011UTI MF wins CNBC TV18-CRISIL Award 13 Nov 2011Lipper Fund Awards09-UTI Mahila Unit-5 yrs 12 Nov 2011Lipper Fund Awards09-UTI Mahila Unit-3 yrs 11 Nov 2011UTI MF sweeps ICRA mutual fund Award 2009 10 Nov 2011Loyalty Awards - 2009 09 Nov 2011UTI MF wins the Best Debt Fund House Award 08 Nov 2011UTI AMC gets 3 International Awards 07 Nov 2011infrastructure_fund 06 Nov 2011cnbcaward_2007 04 Sep 2011UTI Nifty Index Fund wins Gold at ICRA Online 03 Sep 2011CNBC India Mutual Fund of the Year Award

03 Sep 2011UTI Dynamic Equity Fund wins Silver at ICRA Online 02 Sep 2011UTI Growth Value Fund has been ranked by CRISIL 02 Sep 2011CNBC-TV18-BNP Par-ibas Mutual Fund of the year Award 01 Sep 2011CNBC-TV18-BNP Par-ibas Mutual Fund of the year Award 2006 01 Sep 2011Lipper Fund Awards 31 Aug 2011ICRA online Mutual Fund Award: UTI NIFTY INDEX FUND won the award for the year 2004 TRUSTEES Shri Janki Ballabh, Chairman, Former Chairman, SBI Flat No. 605, Versova Vinayak Co-op. Hsg. Soc., HSG Plot No. 8, Near Versova Telephone Exchange, Versova, Andheri (W), Mumbai 400 053 Shri S P Oswal Chairman & Managing Director-Vardhman Textiles Ltd. Auro Mirra Bhawan, 2722, Gurdev Nagar, Pakhowal Road, Ludhiana. Shri S Ravi Senior Partner,Ravi Rajan & Co. Chartered Accountants D-218, Saket, New Delhi - 110 017 Dr. P G Apte Director, Indian Institute of Management, Bangalore, 415, IIMB Campus, Bannerghatta Road, Bangalore - 560 076 Shri Ashok K Kini Flat No. B-202, Mantri Pride

Apartment, 1st Cross Mountain Road, Jayanagar, 1st Block, Bangalore 560011 Prof P V Ramana Chairman, ITM Business School, Kharghar Bungalow No 12, Gulab View, Near Chembur, Mumbai - 400 071 BOARD OF DIRECTORS P. R. KHANNA MR. JAMES SELLERS RIEPE MR.FLEMMING MADSEN MR.SANCHIT JAIN MR.PRADEEP GUPTA MR.P.N. VENKATACHALAM

SPONSORS We are sponsored by three leading public sector banks the Bank of Baroda, Punjab National Bank and the State Bank of India and the Life Insurance Corporation of India (LIC), the largest public financial investment institution and life insurer in India. BANK OF BARODA Since inception, Bank of Baroda has always maintained its practice of sound, value-based banking to emerge as one of the premier public sector banks in the country today. It has a track record of uninterrupted profits since inception in 1908. The financial strength of the bank and its long tradition of efficient customer service are drawn substantially from the extensive reach of its 3100-strong branch network covering almost every state and union territory in the country. It is also one of the few Indian banks with a formidable presence overseas with 48 branches with the total branch network tally standing at 3148 as on 31.03.2010. LIFE INSURANCE CORPORATION OF INDIA Life Insurance Corporation of India (LIC) is amongst the largest insurance companies in the world, with 2048 branches and with a fund size of Rs. 9,99,517.59 crore.

PUNJAB NATIONAL BANK Punjab National Bank is a commercial bank with the main objective being the facilitation of acquisition and transfer of the undertaking of certain banking companies, with regard to their size, resources coverage and organization. They do so in order to meet progressively and serve the needs of the development of the economy and to promote the welfare of the people of India. As on 31.03.2010, Punjab National Bank had 4997 domestic offices including 46 extension counters, 5 foreign branches and a deposit size of Rs. 2,49,330 crore. STATE BANK OF INDIA The State Bank of India is the largest public sector bank in India with 12,496 branches in India and 142 overseas offices in 32 countries as on 31.03.2010. In addition to this, SBI also has 22 subsidiaries. The sponsors are neither responsible nor liable for any loss resulting from the operation of the scheme beyond the contribution of Rs.10,000/- made by them towards setting up the Mutual Fund. FUND MANAGERS MR.ANOOP BHASKAR MR.AMANDEEP CHOPRA MR.SANJAY RAMDAS DONGRE MR.PUNEET PAL MS.SWATI KULKARNI MS.SHILPITA GUHA MR.LALIT NAMBIAR MR.V.SRIVATSA MR.ARUN KHURANA MR.AJAY TYAGI MR.KAUSHIK BASU MR.RANJAN KUMAR BISWAL MR.SACHIN DINESH TRIVEDI MR.ARPIT KAPOOR

OBJECTIVES OF STUDY

The study the concept of schemes (mutual fund)

To study the procedure for analyzing the volatility of fund

To study the performance of ICICI MF & UTI mutual funds selected schemes and their NAV rate as well as risk ratio of those schemes Study explains about the various funds performance of ICICI MF & UTI MF. Here selected EQUITY FUND AND BALANCED FUND of both companies, and analyze and compare the performance as well as return of selected funds of above companies in the current scenario

RESEARCH METHODOLOGY

Sources of Data: a) Primary Data:This research is solely based on primary research done by means of questionnaires targeted to respondents who primarily belong to the business and service sector. We fill up this questioner mostly who are the client of ICICI AMC Ltd. & UTI AMC Ltd b) Secondary Data Visiting site of ICICI mutual fund & UTI mutual fund, NAV rate, leaflets, broachers of company; this study is highly dependent on the secondary data for various facts and figures.

DATA ANALYSIS Two funds are selected here to compare the performance of UTI Mutual fund and ICICI Mutual fund, funds are Equity funds Balanced funds

EQUITY FUNDS A mutual fund that invests principally in stocks. It can be actively or passively (index fund) managed, also known as a "stock fund. Stock mutual funds are principally categorized according to company size, the investment style of the holdings in the portfolio and geography. Size is determined by a companys market capitalization, whiles the investment style, reflected in the fund's stock holdings, and is also used to categorize equity mutual funds. Stock funds are also categorized by whether they are domestic (U.S.) or international. These can be broad market, regional or single-country funds. There are so-called "specialty" stock funds that target business sectors such as healthcare, commodities and real estate. Here select three equity funds of ICICI mutual funds, they are a. ICICI Prudential Focused Bluechip Equity Fund b. ICICI Prudential FMCG Fund c. ICICI Prudential Top 200 Fund

a. ICICI Prudential Focused Bluechip Equity Fund Diversification is needed to reduce risk, but too much diversification can result in diminishing returns. Therefore, it makes sense to strike a balance between minimum risk and maximum returns, which is what a focused fund does. By investing in the largest companies because of an outlook that they will be the most stable through any situation, it strives to grow your wealth in the long run. ICICI Prudential Focused Bluechip Equity Fund, an open-ended equity scheme, aims to maximize long-term total returns, from a focused and optimally diversified portfolio that is invested in equity and equity related securities of about 20 companies belonging to the large cap domain. This strategy has the potential to generate positive returns from being overweight on certain high conviction stock picks. Investment Philosophy This fund invests in about 20 equity and equity related securities, and seeks to generate long term capital appreciation. The portfolio is mandated to select stocks from among the Top 200 stocks in terms of market capitalization on the NSE. This fund adopts a bottom-up approach to Stock Selection and the fund manager has the flexibility to choose between stocks across all themes, sectors and investment styles. Investor Profile This fund is ideal for Investors looking at the comfort of investments in large-cap companies. Investors seeking the benefits of concentrated bets on the stock ideas by way of potentially higher returns. Key Benefits Higher Liquidity due to broader investor participation Relatively lower volatility compared to mid and small cap stocks Large caps generally recover faster than small and mid cap stocks Benefit of optimal diversification strategy targeted at long term capital appreciation

Schemes ICICI prudential focused bluechip equity fund-Inst. Growth ICICI prudential focused bluechip equity fund- Retail Dividend ICICI prudential focused bluechip equity fund- Retail Growth

Latest NAV (Rs.) 16.97 (21/march/2012) 15.68(21/march/2012) 16.43 (21/march/2012)

Key Features Type Options Default option Application amount Open ended equity scheme Growth & dividend & institutional plan (Growth) Growth Retail: Rs.5,000 (plus in multiples of Re.1) Institutional I : Rs. 10 Crores (plus in multiples of Re.1) Retail :Rs.1000/- (plus in multiples of Re.1/-) Institutional:Rs.10,000/-(plus in multiples of Rs.1) Nil. Upfront commission shall be paid directly by the investor to the AMFI registered Distributors based on the investors' assessment of various factors including the service rendered by the distributor. (w.e.f. 24-08-09): (a) If the amount, sought to be redeemed or switched out, is invested for a period of upto one years 1%; (b) If the amount, sought to be redeemed or switched out, is invested

Min. Additional Investment

Entry load

Exit load

Redemption cheques issued

Minimum redemption amount Systematic investment plan

Systematic withdrawal plan

Net asset value periodicity Tax benefits

for a period of more than one year from the date of allotment - Nil. Generally Within 3 business day for Specified RBI locations and additional 3 Business Days for Non-RBI locations. Rs. 500 Retail Option : (Monthly) Minimum Rs.1,000 + 5 post - dated cheques for a minimum of Rs.1000 each Quarterly : Minimum Rs. 5000 + 4 post - dated cheques of Rs. 5000 each Exit Load (w.e.f. 24-8-09): (a) If the amount,sought to be redeemed or switched out, is invested for a period of upto two years 1%; (b) If the amount, sought to be redeemed or switched out, is invested for a period of more than two years Nil. Retail Option: Rs.500 and in multiples of Re. 1/- provided minimum balance should not fall below Rs.5000/-. Calculated & Declared on every Business day Capital Gains Tax and Indexation benefits.

b. ICICI Prudential FMCG Fund The Indian FMCG sector is the 4th largest in the economy and is characterized by a strong presence of MNC's, well established distribution networks, fierce competition and low operational costs. All these factors, the country's growth potential and the increasing disposable income of consumers are contributing towards making it a lucrative opportunity for investment. Sector funds enable spiking a diversified portfolio with sharper sectoral focus; thereby enhancing the investor's potential to gain from superior performance in a focused area. ICICI Prudential FMCG Fund is an open-ended equity fund that invests in companies, which will benefit from increasing consumption in the country. It is a diversified sector fund that holds scrips across sub-sectors like food, retail distribution, apparel and consumables. Investment Philosophy This fund seeks to optimize the risk-adjusted return by a 'Bottom-up' strategy, to identify and pick stocks in the FMCG Sector. The portfolio comprises of a smaller number of scrips to reflect the prospects of the FMCG sector and also holds stocks across various sub-sectors, within the broad definition of the sector. A smaller allocation to other sectors is permitted purely for defensive considerations. Key Benefits It allows an investor to allocate his equity assets in accordance to his sectoral preference and implement his views on the sector. Provides an option to diversify in terms of style, into a sharp, focused, thematic fund. Schemes ICICI prudential FMCG Funddividend ICICI prudential FMCG FundGrowth Latest NAV (Rs.) 45.10 (21/3/2012) 83.45 (21/3/2012)

Key Features Type Options Dividend option Entry load Open ended FMCH sectoral fund Growth and dividend option Dividend reinvestment Nil. Upfront commission shall be paid directly by the investor to the AMFI registered Distributors based on the investors' assessment of various factors including the service rendered by the distributor. w.e.f. 24-08-09): (a) If the amount, sought to be redeemed or switched out, is invested for a period of upto one years 1%; (b) If the amount, sought to be redeemed or switched out, is invested for a period of more than one year from the date of allotment Nil Generally within 1 Business Day for specified RBI locations and an additional 3 Business Days for Non RBI locations. Monthly: Minimum Rs.1,000 + 5 post dated cheques for a minimum of Rs.1000 each Quarterly : Minimum Rs. 5000 + 4 post - dated cheques of Rs. 5000 each Exit Load (w.e.f. 24-8-09): (a) If the amount,sought to be redeemed or switched out, is invested for a period of upto two years 1%; (b) If the amount, sought to be redeemed or switched out, is invested for a period of more than two years Nil. Minimum of Rs.500 and multiples of Re.1/Calculated & Declared on every Business day Capital Gains Tax and Indexation benefits.

Exit load

Redemption cheques issued

Systematic investment plan

Systematic withdrawal plan Net asset value periodicity Tax Benefits

C. ICICI Prudential Top 200 Fund A multitude of choice could make it difficult to settle on anything. What looks excellent today may not be that fruitful tomorrow, and what seems to be hopeless today could be terrific tomorrow. In this situation, after understanding the fundamentals of various opportunities, the smartest move would be to focus small amounts across everything that seems promising. As a cautious investor, you would do well to expose yourself to the idea of capturing market opportunities and seeking out the optimum sectors to invest in. ICICI Prudential Top 200 Fund, an open-ended diversified equity fund allows you to capture growth opportunities by constantly being on the lookout for out the best sectors to invest in across multiple regions in the market. Investment Philosophy This fund seeks to optimize the risk-adjusted return by building a portfolio of large and mid-cap stocks across select sectors. It follows a blend of top-down macro research to identify growth sectors and bottom-up fundamental research to identify stocks. It is a multi-sector fund focused on investing in carefully selected stocks offering best possible risk-adjusted return across select sectors with potential growth opportunities. Key Benefits It gives you a core large-cap portfolio with limited exposure to mid-cap stocks It gives you an edge by capturing the best sectoral opportunities in the market Schemes Latest NAV (Rs.)

ICICI prudential top 200 fund- Dividend 15.88 (21/03/2012) ICICI prudential top 200 fund- Growth ICICI prudential top 200 fundInstitutional plan option- 1 106.99 (21/03/2012 30.28 (21/03/2012)

Key Features

Type Options Default option Entry load

Exit load

Redemption Cheques Issued

Open ended growth fund Growth and dividend option Dividend reinvestment Nil. Upfront commission shall be paid directly by the investor to the AMFI registered Distributors based on the investors' assessment of various factors including the service rendered by the distributor (w.e.f. 24-08-09): (a) If the amount, sought to be redeemed or switched out, is invested for a period of upto one years 1%; (b) If the amount, sought to be redeemed or switched out, is invested for a period of more than one year from the date of allotment - Nil. Generally Within 3 business day for Specified RBI locations and additional 3 Business Days for Non-RBI locations. Monthly : Minimum Rs.1000 + 5 post dated cheques for a min of Rs.1000/each. Quarterly : Minimum Rs. 5000 + 4 post - dated cheques of Rs. 5000/each.Exit Load (w.e.f. 24-8-09): (a) If the amount,sought to be redeemed or switched out, is invested for a period of upto two years 1%; (b) If the amount, sought to be redeemed or switched out, is invested for a period of more than two years Nil. Minimum of Rs.500 and multiples of Re1/-

Systematic Investment Plan

Systematic Withdrawal Plan

BALANCED FUNDS OF ICICI MF A fund that combines a stock component, a bond component and, sometimes, a money market component, in a single portfolio. Generally, these hybrid funds stick to a relatively fixed mix of stocks and bonds that reflects either a moderate (higher equity component) or conservative (higher fixed-income component) orientation. A balanced fund is geared toward investors who are looking for a mixture of safety, income and modest capital appreciation. The amounts that such a mutual fund invests into each asset class usually must remain within a set minimum and maximum. Although they are in the "asset allocation" family, balanced fund portfolios do not materially change their asset mix. This is unlike life-cycle, targetdate and actively managed asset-allocation funds, which make changes in response to an investor's changing risk-return appetite and age, or overall investment market conditions Here select three balanced funds of ICICI Mutual fund they are, a. ICICI Prudential Balanced Fund b. ICICI Prudential Child Care Plan (Study) c. ICICI Prudential Monthly Income Plan

a. ICICI Prudential Balanced Fund Asset allocation is the key to investing success as it helps you reduce the volatility of returns. By investing in equity for capital appreciation and debt for stable returns, you can reduce instability of returns by increasing / decreasing exposure to various markets, based on in-depth research and analysis. ICICI Prudential Balanced Fund, an open-ended balanced fund, does just that. It takes care of this asset allocation by constantly investigating market outlook and performance and accordingly by increasing / decreasing equity exposure based on the market outlook and using a core debt portfolio to do the rebalancing. Investment Philosophy This fund seeks to optimize the risk-adjusted return by distributing assets between both equity and debt markets. In bullish markets equity allocation can go upto 80%. In bearish markets equity allocation can go down to 65%. This dynamic allocation along with core debt portfolio reduces the volatility of return Investor Profile This Plan is ideal for Investors seeking exposure to both equity and debt markets through one fund Investors considering reasonable returns with and lower risk through diversification. Key Benefits Provides the twin benefits of growth from equity markets and steady income from debt markets. Lower volatility of returns and lower risk through diversification. Schemes ICICI Prudential Balanced Fund Dividend ICICI Prudential Balanced Fund Growth NAV latest (Rs.) 16.43 (21/03/2012)

48.83 (21/03/2012)

Key Features Type Options Default option Entry load Exit load Open ended balanced fund Growth and dividend option Growth Nil 1.00% if investment is redeemed within 1year.Nil if investment is redeemed after 1year but before the Beneficiary Child attains the age of 18. Monthly: Minimum Rs. 1000 + 5 postdated cheques for a minimum of Rs. 1000 each. Quarterly: Minimum Rs.5000 + 4 post-dated cheques of Rs. 5000 each. Minimum of Rs.500/- and Multiples thereof Calculated & Declared on every Business day

Systematic Investment Plan

Systematic Withdrawal Plan Net Asset Value Periodicity

b. ICICI Prudential Child Care Plan (Study) All our dreams can come true, if we plan for and pursue them. And we need to remember that our dreams are linked to our children's aspirations. A surgeon today, an astronaut tomorrow and may be a fashion designer the day after. We must always encourage them to dream big. ICICI Prudential Child Care Plan, an open-ended fund, is an investment instrument specially designed to help you give your child a head start in life by leveraging the opportunities and dynamism of equity and debt markets. It offers two options

Gift Option - (Suitable if your child is in age group of 1-13 years.) Study Option - (Suitable if your child is in age group of 13-17 years.) Investment Philosophy This fund is invests 65-100% of your money in equity and equity related securities to leverage growth opportunities and the other 0-35% is normally invested in debt securities to seek stability to your investments.

Key Benefits Personal Accident Cover (for resident applicants) - Till your child attains the age of 18 or till units are redeemed (whichever is earlier), you as his / her parent / legal guardian will be eligible for a Personal Accident Cover equivalent to 10 times the value of the Units you have purchased (value at purchase price) subject to a maximum of limit of Rs. 5 lakh.

Schemes ICICI Prudential Child Care Plan Study Plan

NAV latest (Rs.) 31.3722 (21/03/2012)

Key Features Type Options Default option Entry load Exit load Open ended fund Cumulative option Cumulative option Nil 1.00% if investment is redeemed within 3 years. Nil if investment is redeemed after 3 years but before the Beneficiary Child attains the age of 18. Generally Within 3 business day for Specified RBI locations and additional 3 Business Days for Non-RBI locations. Monthly: Minimum Rs. 1000 + 5 postdated cheques for a minimum of Rs. 1000 each. Quarterly: Minimum Rs.5000 + 4 post-dated cheques of Rs. 5000 each. Minimum of Rs 500 and multiples thereof.

Redemption Cheques Issued

Systematic Investment Plan

Systematic Withdrawal Plan

ICICI Prudential Monthly Income Plan Investing has always meant seeking a stable, regular return. Although there are those who would sway towards leveraging the benefits of equity investing, several investors are focused on conservative growth and regular income. However, inflation tends to impact conservative returns, so a limited exposure to equity has the potential to add a spark to your returns, while treading along cautiously. ICICI Prudential Monthly Income Plan (MIP) (Monthly Income is not assured and is subject to availability of distributable surplus), an open-ended fund, is designed to be a low risk income-generating product for an investor who likes to earn the short term debt market return enhanced by a small equity component that does not significantly add to the risk of the portfolio. Investment Philosophy This conservatively managed fund invests predominantly in debt securities with the view of generating regular income. To this basic portfolio, it adds on a very limited equity exposure to a maximum of 15%, such that the risk-adjusted returns have potential to be enhanced. The intent is to provide the benefit of equity returns, without adding on significant risk. The fund aims to manage interest rate risks and credit risks by investing in high quality debt instruments & also has the ability to be dynamically managed to alter asset allocation, depending on the equity / debt market scenario. Investor Profile This fund is ideal for Investors focused on earning income and seeking limited growth without too much risk. Investors willing to take on limited equity exposure. Investors concerned about the interest rate risks in pure debt funds. Key Benefits A core portfolio invested in debt provides stability to the investment. Limited exposure to equity has the potential to spike up the returns generated from the basic debt portfolio & provides an opportunity to earn better riskadjusted returns

The fund has the track record of uninterrupted monthly dividends since inception

Scheme ICICI Prudential MIP Cumulative

NAV latest (Rs.) 27.3245 (21/03/2012)

ICICI Prudential MIP - Dividend - 12.2773 (21/03/2012) Half Yearly ICICI Prudential MIP - Dividend 11.5308 (21/03/2012) Monthly ICICI Prudential MIP - Dividend 12.2883 (21/03/2012) Quarterly

Key Features Type Options

Default Option Entry load Exit load

Systematic Investment Plan

Open ended fund Growth AEP* (Appreciation & Regular) Dividend (Monthly, Quarterly, HalfYearly) Growth Nil (a) If the amount, sought to be redeemed or switched out, is invested for a period of upto1 year from the date of allotment 1%; (b) If the amount, sought to be redeemed or switched out, is invested for a period more than 1year from the date of allotment - Nil. Dividend & AEP Option - Monthly and Cumulative (without AEP) Option Monthly: Min Rs.1000 + 5 post - dtd cheques for a minimum of Rs.1000 each Quarterly: Minimum Rs. 5000 + 4 post dated cheques of Rs. 5000 each. Exit Load: (w.e.f. 01-10-09): (a) If the

Systematic Withdrawal Plan

amount, sought to be redeemed or switched out, is invested for a period of upto 1 year from the date of allotment 1%; (b) If the amount, sought to be redeemed or switched out, is invested for a period more than 1year from the date of allotment - Nil. Minimum of Rs.500 and multiples of Re1/Calculated & Business day Declared on every

Net Asset Value Periodicity

UTI MUTUAL FUNDS Here select three equity funds of UTI mutual funds, they are

a) UTI Top 100 Fund b) UTI MNC Fund c) UTI Equity Fund UTI TOP 100 FUND Investment Objective: investment will be made in stock of those companies engaged in the following areas An open ended equity fund for investment in equity shares, convertible & non convertible debentures and other capital and money market instruments with a provision to invest upto 50%of its corpus in PSUs equities and equity related products. The fund aims to provide unit holders capital appreciation and income distribution. Investment Information Fund type Date of inception Investment plan Fund size (Rs.Cr) Number of investors Min. investment Last dividend Bonus Open ended 20/05/2009 Income retail 652.96 (as of 29th feb 2012) 257449 (as of 29th feb 2012) 5000 1.2 N.A.

Who should invest?


A diversified large cap oriented fund with moderate-style of funds management is suitable for all equity investors

Performance Absolute Returns Period 2008-2009 2009-2010 2010-2011 Since inception Returns (%) N.A 12.89 -16.16 6.50

3 2 1 0 2008-09 -1 -2 -3 -4 2009-10 2010-11 since inception

UTI TOP 100 Fund Spliced Equity

Portfolio
ENERGY OTHERS CASH CEMENT& CEMENT PRODUCTS FINANCIAL SERVICES CONSUMER GOODS IT INDUSTRIAL MANUFACTURING

Sectoral Breakdown (%) Sectoral Breakdown (benchmark)

Market capitalization Large 84.00 Mid 13.00 Small 3.00

b) UTI MNC FUND Investment objective: Investment will be made in stocks of those companies engaged in the following areas: An open ended equity fund with the objective to invest predominantly in the equity shares of multinational companies in diverse sectors such as FMCG, pharmaceutical, engineering etc. Investment information Fund type Date of inception Investment plan Fund size (Rs.Cr) Number of investors Min. investment Last dividend Bonus Who should invest? 1. A diversified mid-cap oriented fund with moderate-style of funds management is suitable for informed investors Performance Absolute returns: Period 2008-2009 2009-2010 2010-2011 Since inception Returns 82.03 26.07 -6.04 15.84 Equity diversified 29/05/1998 Growth retail 214.78 (as of 29th feb 2011) 51487 (as of 29th feb 2011) 5000 N.A. N.A.

7 6 5 4 3 2 1 0 2008-2009 -1 -2 2009-2010 2010-2011 since inception UTI MNC FUND SPLICED EQUITY INDEX

Portfolio: Market capitalization Large 42.00 Mid 43.00 Small 15.00

consumer goods

others

cash

anutomobile

sectoral breakdown2 sectoral

energy

industrial manufacturing

pharma

0.2

0.4

0.6

0.8

1.2

1.4

1.6

C. UTI EQUITY FUND Investment objective Investment will be made in stocks of those companies engaged in the following areas: UTI Equity Fund is open ended equity scheme with an objective of investing at least 80% of its funds in equity and equity related instrument with medium to high risk profile and upto 20% in debt and money market instruments with low to medium risk profile. Investment information Fund type Date of inception Investment plan Fund size (Rs.Cr.) Number of investors Min. investment Last dividend Bonus Who should invest? A diversified large cap oriented fund with conservative- style of funds management is suitable for all equity investors Performance Absolute returns Period 2008-09 2009-10 2010-11 Since inception Returns 85.17 20.50 -19.09 10.61 Open ended equity fund 18.05.1992 Income retail 2016.56 800247 5000 1 N.A.

5 4 3 2 1 0 2008-09 -1 -2 2009-10 2010-11 sice inception

UTI Equity Fund spliced Equity Index

Portfolio

pharma

consumer goods

automobile

cash sectoral breakdown sectoral energy

IT

cement & cement products

financial services

others 0 0.5 1 1.5 2 2.5 3 3.5

Market capitalization (%) large 83.00 Mid 13.00 Small 4.00

BALANCED FUNDS OF UTI Here select three balanced funds of UTI mutual funds, they are 1. UTI- childrens Career Balanced Plan 2. UTI- Retirement Benefit Pension Fund 3. UTI- Balanced Fund

1. UTI- Childrens Career Balanced Plan Investment objective Investment will be made in stocks of those companies engaged in the following areas: An open ended debt oriented fund with investment in Debt/G- Sec of minimum 60% and a maximum of 40% in Equity. Investment can be made in the name of the children up to the age of 15 years so as to provide them, after they attain the age of 18 years, a means to receive scholarship to meet the scholarship to meet the cost of higher education and to help them in setting up a profession, practice or business or enabling them to set up a home or finance the cost of other social obligation Investment information Fund type Date of inception Investment plan Fund size (Rs.Cr.) Number of investors Min. investment Last dividend Bonus Hybrid debt oriented 12.07.1993 No class 2728.20 1956082 1000 N.A. N.A

Performance Absolute returns: Period 2009-10 2010-11 2011-12 Since inception Returns (%) 10.90 -4.00 N.A 10.96

5 4 3 2 1 0 2009-10 -1 -2 2010-11 2011-12 since inception UTI- children's career balanced plan spliced equity index

Market capitalization (%) Large 54.00 Mid 27.00 Small 19.00

2. UTI- Retirement Benefit Pension Fund Investment objective Investment will be made in stocks of those companies engaged in the following areas: The objective of the scheme is to provide pension to investors particularly selfemployed persons after they attain the age of 58 years, in the form of periodical cash flow upto the extent of repurchase value of their holding through a systematic withdrawal plan.

Investment information Fund type Date of inception Investment plan Fund size (Rs.Cr.) Number of investors Min. investment Last dividend Bonus Hybrid debt oriented 26.12.1994 No class 765.25 467754 500/- (subject to attaining a min. invest. of Rs.10,000/-) N.A. N.A

Performance Absolute returns: Period 2009-10 2010-11 2011-12 Since inception Returns (%) 9.55 -7.21 N.A. 10.68

5 4 3 2 1 0 2009-10 -1 -2 -3 -4 2010-11 2011-12 sice inception UTI- Retirement Benefit Pension Fund Spliced Equity Index

Portfolio Market capitalization: Large 52.00 Mid 27.00 Small 21.00

3. UTI- Balanced Fund Investment objective Investment will be made in stocks of those companies engaged in the following areas: An open ended balanced fund investing between 40% to 75% in equity/ equity related securities and the balance in debt (fixed income securities) with a view to generate regular income together with capital appreciation. Fund type Date of inception Investment plan Fund size (Rs.Cr.) Number of investors Min. investment Last dividend Bonus Hybrid equity orien 02.01.1995 Growth retail 878.55 927179 1000 N.A N.A

Performance Absolute Returns Period 2009-10 2010-11 2011-12 Since inception Returns (%) 16.36 -19.23 N.A. 15.44

5 4 3 2 1 0 2009-10 -1 -2 -3 -4 -5 2010-11 2011-12 since inception UTI Balanced Fund Spliced Equity

Market capitalization (%) Large 64.00 Mid 25.00 Small 11.00

MUTUAL FUND RISK ANALYSIS

CALCULATION OF MUTUAL FUND RISKS Any investment decision has to carry a certain amount of risk. So, it means that mutual funds also carry a risk profile with them. Some of the tools available to assess your scrips riskiness can also are used to assess a mutual fund's risk (or its close cousin, volatility) Beta This common measure compares a mutual fund's volatility with that of a benchmark and is supposed to give some sense of how far you can expect a fund to fall when the market takes a dive, or how high it might climb if the bull is running hard. A fund with a beta greater than 1 is considered more volatile than the market; less than 1 means less volatile. So say your fund gets a beta of 1.15 -- it has a history of fluctuating 15% more than the benchmark if the market is up, the fund should outperform by 15%. If the market heads lower, the fund should fall by 15% more.

But beta, though a useful guide, is far from perfect, especially when used as a proxy for "risk." The problem here, as with many risk measures, is the benchmark. The benchmark has to be a correct measure of comparison only then will the beta hold any indicative value.

Beta equation (Mutual Fund) The beta of a fund is determined as follows: [(n) (sum of (xy))]-[(sum of x) (sum of y)] [(n) (sum of (xx))]-[(sum of x) (sum of x)] where: n = # of observations (36 months) x = rate of return for the S&P 500 Index y = rate of return for the fund Standard Deviation Meet the most popular of the risk measures -- one with a distinct advantage over beta. While beta compares a fund's returns with a benchmark, standard deviation measures how far a fund's recent numbers stray from its long-term average. For example, if Fund X has a 10% average rate of return and a standard deviation of 5%, most of the time, its return will range from 5% to 15%. A large standard deviation supposedly shows a more risky fund than a smaller one. But here, again, what's problematic is your reference point. The number alone doesn't tell you much. You have to compare one standard deviation with the others among a fund's peers. But a more glaring problem is that the standard deviation system rewards consistency above all else. A fund is considered stable based on the uniformity of its own monthly returns. So if it loses money but does so very consistently it can have a very low standard deviation -- down 3% each and every month wins a standard deviation of zero. And likewise, a fund that gains 10% one month and 15% the next would be penalized by a high standard deviation -- a reminder that volatility, although perhaps a cousin to risk, itself isn't necessarily a bad thing.

Formula of Standard Deviation

Sharpe Ratio This formula, worked by Nobel Laureate Bill Sharpe, tries to quantify how a fund performs relative to the risk it takes. Take a fund's returns in excess of a guaranteed investment (a 90-day T-bill) and divide by the standard deviation of those returns. The bigger the Sharpe ratio, the better a fund performed considering its riskiness. Here, again, you have the problem of relativity -- the ratio itself doesn't tell you anything, you have to compare it with the Sharpe of other funds. But this ratio has an advantage over alpha because it uses standard deviation instead of beta as the volatility variable, and therefore you don't have to worry that a fund doesn't relate well to the chosen index. Overseas, one has mutual fund rating companies - like Morning Star which provide views of risk. Morningstar says that what we investors really care about is when our funds lose money, not when they're doing better than the benchmark or than their long-term averages. It measures how often and by how much a fund trails the monthly T-bill rate, and then compares that average loss with that for the investment class. The average for a class is 1.00, so numbers above that mean a fund is riskier than its peers, and below is considered less risky

Formula of Sharpe Ratio

CONCLUSION AND SUGGESTIONS

CONCLUSION There are various funds provided by ICICI MF & UTI MF. Here I selected equity fund and balanced fund of above companies to analyze performance of those funds in the current scenario. All funds carry the different amount of risk as well as return. Performances of all above funds are dependent up on the stock market variations. As per the analysis of above funds equity fund of both companies has given more return compared to other funds. Based on the last year performance of the above funds equity funds turnover ratio was higher than the other funds. But at the same time equity fund carry high rate of risk, because a minute variation in stock market directly affect the returns from the funds. These are the merit and demerit of equity fund, due to its aggressive positioning, equity fund is most suited for youngsters, because higher the equity exposure in a scheme, higher will be the risk. So age group of the investors is an important factor in mutual fund investments.

SUGGESTION To Company

Allocating marketing investment according to customer value. Require to conduct awareness programs about Mutual Fund

To clients Invest and monitor portfolio from time to time. Read term & condition before invest money.

LIMITATIONS OF THE STUDY

The main limitation of my study is from the investor side, as for providing them the PMS I need to know their past investments in detail which they hesitate to disclose as they find it hard to trust anyone regarding their investments, so I have to first built up the trust & then talk about the investments, as the main limitation is time so it takes me at least few days for this procedure through regular visits & follow ups. Time period undertaken for the project was also one of the limiting factors The sample size taken for drawing a conclusion is too small to get an accurate result & is only small portion of actual population. Difficult to overcome investors who wants return in less time & at times its difficult to get the documents required for formalities from investors.

REFERENCES

1. 2. 3.

www.utimf.com www.icicipruamc.com www.amfiindia.com

4. www.investmentcompanyinstitute.com 5. www.moneycontrol.com

Books: Indian Mutual Funds Handbook by Sundar Sankaran Managing a Portfolio of Mutual Funds by Ronald K Rutherford

You might also like