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Declaration
I hereby declare that the project report entitled Performance of
Mutual Funds submitted
to Local Head Office, SBI Mutual Fund, Udaipur after the
successful completion of project.
Internship is a bonafide record of research work carried out by
me under the guidance of Mr.
Vishnu Kantiwal, ISD Head of SBI Mutual Fund, Udaipur. This
project is entirely an
evidence of work avoiding any duplication whatsoever of previous
researches except
references made and cited in the project for the successful
understanding of the topic.
Date: - Abhishek Singh Rathore
Place: - (MBA-FSM III Sem.)
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Acknowledgment
I am grateful to Mr. Vishnu Kantiwal ISD Head of SBI Mutual
funds, Udaipur, and Prof.
Anil Kothari, coordinator MBA-(FSM) under whose guidance this
project was completed.
Their guidance and constant encouragement helped me to complete
the study.
I am thankful to Mr. Naveen Khandelwal, Operations Head of
Mutual Fund, Udaipur and
other staff for their constant support and help in providing
data.
My sincere and deepest thanks to Prof. Karunesh Saxena, Director
and all other faculty
members of Faculty of Management Studies, for giving me such an
opportunity and valuable
time for all the guidance given in executing the project as per
requirements.
I am also thankful to all my friends for their valuable
suggestions given to me in the
preparation of this project report for which I will be always
indebted to them.
Abhishek Singh Rathore
(MBA-FSM III Sem.)
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Executive Summary
The topic of this project is Performance of mutual funds in
India which are issued in
between year of 2007-2008. The mutual fund industry in India has
seen dramatic
improvements in quantity as well as quality of product and
service offerings in recent years
and hence here focus is on comparing funds of different mutual
fund companies on different
performance parameters. Along with this project also touches on
the trends of mutual fund
industry and returns given by selected mutual funds.
In my 45 days training duration I studied about various types of
funds issued by
AMCs and customer perception with regard to mutual funds that is
the schemes they prefer,
the plans they are opting and the reasons behind such
selections.
In project duration I also found that most of the people are
hesitant in going for new
age investments like mutual funds and prefer to avert risks by
investing in less riskier
investment options like recurring deposits and so. Also people
going for investment in mutual
funds are not going for high-risk portfolios and schemes but
want to go for medium risk
elements. And another finding is that most of the working women
do not prefer this type of
investments.
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Table of Contents CHAPTER-1:-
INTRODUCTION
1.1 Introduction of SBI Mutual Fund.... 7
1.2 History of Mutual Fund10
1.3 Regulatory Framework.12
CHAPTER-2:-
THEORY OF MUTUAL FUNDS
2.1 Concept of Mutual Fund.... 15
2.2 Organization Structure of a Mutual Fund... 17
2.3 Types of Mutual fund schemes in India 19
2.4 Advantages of Mutual Fund... 22
2.5 Mutual Fund Industry Trend..... 23
2.6 Process to invest in Mutual fund.... 26
CHAPTER-3:-
RESEARCH METHODOLOGY
3.1 Research Methodology... 33
3.2 Research Design.. 34
3.3 Tools for Data analysis... 35
3.4 Scope of the study... 35
3.5 Limitations of the Study. 35
CHAPTER-4:-
DATA ANALYSIS & INTERPRETATION
4.1 Birla sun life Special Situation Fund.37
4.2 Birla sun life Commodities Equities Fund Global gain plan..
38
4.3 BNP Paribas Bond Fund39
4.4 Edelweiss ELSS Fund.40
4.5 Edelweiss short term Income Fund...41
4.6 Franklin India Ultra Short Bond Fund42
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4.7 Franklin Asian Equity Fund..43
4.8 HDFC Infrastructure Fund...44
4.9 UTI India Lifestyle Fund...45
4.10 UTI Transportation and Logistics Fund46
4.11 UTI CCP Advantage Fund..47
4.12 Kotak Emerging Equity Fund.....48
4.13 Kotak global Emerging Market
Fund................................................49
4.14 Kotak Gold ETF Fund.....50
4.15 Kotak PSU Bank ETF......51
4.16 SBI Infrastructure Fund.52
4.17 DSP Black Rock Tax Saver Fund..53
4.18 BOI AXA Equity Fund....54
4.19 BOI AXA Short Term Income Fund..55
CHAPTER-5:-
5.1 Conclusion..... 57
BIBLIOGRAPHY.. 58
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Chapter-1
Introduction: 1.1 - Introduction of SBI Mutual Fund
1.2 - History of Mutual Funds in India
1.3 - Regulatory Framework in India
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1.1 - Introduction of SBI Mutual Fund
SBI Mutual Funds are an Indian-based mutual fund. In operation
since 1987, the SBI
fund is one of Indias premier investment products. With a
network of over 222 points of
acceptance throughout India, this fund has very good national
coverage, and is well worth
considering as a potential investment vehicle.
1.1.1 - Corporate Profile
SBI Mutual funds Identity
With 25 years of rich experience in fund management, SBI Funds
Management Pvt.
Ltd. bring forward its expertise by consistently delivering
value to its investors .It has a
strong and proud lineage that traces back to the State Bank of
India (SBI) - India's largest
bank. It is having a Joint Venture between SBI and AMUNDI
(France), one of the world's
leading fund management companies.
With its network of over 222 points of acceptance across India,
it delivers value and
nurture the trust of its vast and varied family of investors.
Excellence has no substitute. And
to ensure excellence right from the first stage of product
development to the post-investment
stage, they are ably guided by their philosophy of growth
through innovation and their
stable investment policies. This dedication is what helps their
customers achieve their
financial objectives.
SBI Mutual funds Vision
To be the most preferred and the largest fund house for all
asset classes, with a
consistent track record of excellent returns and best standards
in customer service, product
innovation, technology and HR practices.
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SBI Mutual Funds Services
Mutual Funds
Investors are their priority. Their mission has been to
establish Mutual Funds as a
viable investment option to the masses in the country. Working
towards it, they developed
innovative, need-specific products and educated the investors
about the added benefits of
investing in capital markets via Mutual Funds.
Today, it has been actively managing its investor's assets not
only through its
investment expertise in domestic mutual funds, but also offshore
funds and portfolio
management advisory services for institutional investors. This
makes them one of the largest
investment management firms in India, managing investment
mandates of over 5.4 million
investors.
Portfolio Management and Advisory Services
SBI Funds Management has emerged as one of the largest player in
India advising
various financial institutions, pension funds, and local and
international asset management
companies.
They have excelled by understanding their investor's
requirements and terms of risk /
return expectations, based on which they suggest customized
asset portfolio
recommendations. They also provide an integrated end-to-end
customized asset management
solution for institutions in terms of advisory service,
discretionary and non-discretionary
portfolio management services.
Offshore Funds
SBI Funds Management has been successfully managing and advising
India's
dedicated offshore funds since 1988. SBI Funds Management was
the 1st bank sponsored
asset management company fund to launch an offshore fund called
'SBI Resurgent India
Opportunities Fund' with an objective to provide its investors
with opportunities for long-
term growth in capital, through well-researched investments in a
diversified basket of stocks
of Indian Companies.
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1.1.2 - Company Key Information
Setup date Jun-29-1987
Incorporation date Feb-07-1992
Sponsor State Bank of India
Trustee SBI Mutual Fund Trustee Company Private Limited
Chairman Mr. Pratip Chaudhri
CEO / MD Mr. Deepak Kumar Chatterjee
CIO Mr. Navneet Munot
Compliance Officer Ms. Vinaya Datar
Investor Service Officer Mr. C A Santosh
Assets Managed Rs.47184.11 crore (Jun-30-2012)
Auditors Haribhakti & Co /M/S. Chandabhoy
&Jassoobhoy
Custodians Computer Age management Services Pvt. Ltd,
Computeronics Financial Services Ltd,
Datamatics Financial Software Services Ltd.
Corporate Office SBI Funds Management Pvt Ltd. A joint venture
between SBI and
AMUNDI 191, maker Tower E, Cuffe Parade,Mumbai - 400 005.
Toll Free No. 1800 425 5425
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1.2- History of Mutual Funds 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 set up 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 assets under management.
Second Phase 1987-1993 (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 Canbank 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.
Third 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, 1993 was 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.
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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 mergers and 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 does not come
under the purview of the
Mutual Fund Regulations.
The second is the UTI Mutual Fund Ltd, 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
Crores of assets under
management and with the setting up of a UTI Mutual Fund,
conforming to the SEBI Mutual
Fund.
The graph indicates the growth of assets over the years:
Source: - AMFI (Association of Mutual Funds in India)
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
ASS
ETS
UN
DER
MA
NA
GEM
ENT
IN '0
00
M
ILLI
ON
IN
R
Mar/65
Mar/87
Mar/93
Mar/00
Mar/02
Mar/04
Mar/06
Mar/08
Mar/10
Mar/12
Mar/13
Mar/14
AUM 0 46 470 1130 1006 1396 2319 5052 6140 5872 7014 8252
AUM GROWTH
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1.3 - Regulatory Framework in India
A- Securities and Exchange Board of India (SEBI)
The Government of India constituted Securities and Exchange
Board of India, by an
Act of Parliament in 1992, the apex regulator of all entities
that either raise funds in the
capital markets or invest in capital market securities such as
shares and debentures listed on
stock exchanges.
Mutual funds have emerged as an important institutional investor
in capital market
securities. Hence they come under the purview of SEBI. SEBI
requires all mutual funds to be
registered with them. It issues guidelines for all mutual fund
operations including where they
can invest, what investment limits and restrictions must be
complied with, how they should
account for income and expenses, how they should make
disclosures of information to the
investors and generally act in the interest of investor
protection. To protect the interest of the
investors, SEBI formulates policies and regulates the mutual
funds.
MF either promoted by public or by private sector entities
including one promoted by
foreign entities are governed by these Regulations. SEBI
approved Asset Management
Company (AMC) manages the funds by making investments in various
types of securities.
Custodian, registered with SEBI, holds the securities of various
schemes of the fund in its
custody. According to SEBI Regulations, two thirds of the
directors of Trustee Company or
board of trustees must be independent.
B- Association of Mutual Funds in India (AMFI)
With the increase in mutual fund players in India, a need for
mutual fund association
in India was generated to function as a non-profit organization.
Association of Mutual Funds
in India (AMFI) was incorporated on 22nd August, 1995.
AMFI is an apex body of all Asset Management Companies (AMC)
which has been
registered with SEBI. Till date all the AMCs are that have
launched mutual fund schemes are
its member. It functions under the supervision and guidelines of
its Board of Directors.
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Association of mutual fund industry has brought down the mutual
fund industry to a
professional and healthy market with ethical line enhancing and
maintaining standards. It
follows the principle of both protecting and promoting the
interests of mutual funds as well
as their unit holders.
The objectives of Association of Mutual Funds in India
The Association of Mutual Funds of India works with 30
registered AMCs of the
country. It has certain defined objectives which juxtaposes the
guidelines of its Board of
Directors. The objectives are as follows:
This mutual fund association of India maintains high
professional and ethical
standards in all areas of operation of the industry.
It also recommends and promotes the top class business practices
and code of conduct
which is followed by members and related people engaged in the
activities of mutual
fund and asset management. The agencies who are by any means
connected or
involved in the field of capital markets and financial services
also involved in this
code of conduct of the association.
AMFI interacts with SEBI and works according to SEBIs guidelines
in the mutual
fund industry.
Associations of Mutual Fund of India do represent the Government
of India, the
Reserve Bank of India and other related bodies on matters
relating to the Mutual Fund
Industry.
It develops a team of well qualified and trained Agent
distributors. It implements a
program of training and certification for all intermediaries and
other engaged in the
mutual fund industry.
AMFI undertakes all India awareness program for investors in
order to promote
proper understanding of the concept and working of mutual
funds.
At last but not the least association of mutual fund of India
also disseminate
information on Mutual Fund Industry and undertakes studies and
research either
directly or in association with other bodies.
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Chapter-2 Theoretical Framework: 2.1 - Concept of Mutual
Funds
2.2 - Organization Structure of a Mutual Fund
2.3 - Types of Mutual Fund Schemes in India
2.4 - Advantage of Mutual Fund
2.5 - Mutual Fund Industry Trend
2.6 - Invest in Mutual Funds
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2.1 - Concept of Mutual Funds
Mutual funds are institutions that collect money from several
sources - individuals or
institutions by issuing 'units', invest them on their behalf
with predetermined investment
objectives and manage the same all for a fee. They invest the
money across a range of
financial instruments falling into two broad categories equity
and debt. Individual people
and institutions no doubt, can and do invest in equity and debt
instruments by themselves but
this requires time and skill on both of which there are
constraints.
Mutual funds emerged as professional financial intermediaries
bridging the time and
skill constraint. They have a team of skilled people who
identify the right stocks and debt
instruments and construct a portfolio that promises to deliver
the best possible 'constrained'
returns at the minimum possible cost. In effect, it involves
outsourcing the management of
money. More explicitly, the benefits of investing in equities
and debt instruments are
supposedly much better if done through mutual funds.
This is because of the following reasons: Firstly, fund managers
are more skilled.
They are trained to identify the best investment options and to
assess the portfolio on a
continual basis. Secondly, they are able to invest in a
diversified portfolio consisting of 15-20
different stocks or bonds or a combination of them. For an
individual such diversification
reduces the risk but can demand a lot of effort and cost. Each
purchase or sale invites a cost
in terms of brokerage or transactional charges such as demat
account fees in India. The need
to possibly sell 'poor' stocks/bonds and buy 'good' stocks/bonds
demands constant tracking of
news and performance of each company they have invested in.
Mutual funds are able to maintain and track a diversified
portfolio on a constant basis
with lesser costs. This is because of the pecuniary economies
that they enjoy when it comes
to trading and other transaction costs. Thirdly, funds also
provide good liquidity. An investor
can sell her/his mutual fund investments and receive payment on
the same day with minimal
transaction costs as compared to dealing with individual
securities, this totals to superior
portfolio returns with minimal cost and better liquidity.
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In India one can gain additional benefit by investing through
mutual funds tax
savings. Investment in certain types of funds such as Equity
Linked Tax Savings Schemes
(ELSS) allows for certain amount of income tax benefits.
This can be represented with the following flow chart:
Source: - AMFI (Association of Mutual Funds in India)
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2.2 -Organization Structure of a Mutual Fund
There are many entities involved and the diagram below
illustrates the
organizational set up of a mutual fund :-
The important terms of the figure are explained as follows:
Fund Sponsor:
A sponsor is any person who, acting alone or in combination with
another body
corporate, establishes a MF. The sponsor of a fund is similar to
the promoter of a company.
In accordance with SEBI Regulations, the sponsor forms a trust
and appoints a Board of
Trustees, and also generally appoints an AMC as fund manager. In
addition, the sponsor also
appoints a custodian to hold the fund assets. The sponsor must
contribute at least 40% of the
net worth of the AMC and possess a sound financial track record
over five years prior to
registration.
Trustees:
The MF or trust can either be managed by the Board of Trustees,
which is a body of
individuals, or by a Trust Company, which is a corporate body.
Most of the funds in India are
managed by Board of Trustees. The trustee being the primary
guardian of the unit holders
funds and assets has to be a person of high repute and
integrity. The trustees, however, do not
directly manage the portfolio securities. The portfolio is
managed by the AMC as per the
defined objectives, accordance with Trust Deed and SEBI (Mutual
Funds) Regulations.
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Asset Management Company (AMC):
The AMC, which is appointed by the sponsor or the trustees and
approved by SEBI,
acts like the investment manager of the trust. The AMC functions
under the supervision of its
own Board of Directors, and also under the direction of the
trustees and SEBI. AMC, in the
name of the trust, floats and manages the different investment
schemes as per the SEBI
Regulations and as per the Investment Management Agreement
signed with the Trustees.
Others:
Apart from these, the Mutual Fund has some other fund
constituents, such as
custodians and depositories, banks, transfer agents and
distributors.
The custodian is appointed for safe keeping of securities and
participating in the
clearing system through approved depository. The bankers handle
the financial dealings of
the fund. Transfer agents are responsible for issue and
redemption of units of Mutual Fund.
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2.3 Types of Mutual Fund Schemes in India
A mutual fund, say, SBI Mutual Fund, can have several 'funds'
[called 'schemes' in
India) under its management. These different funds can be
categorized by structure,
investment objective and others. It would be well illustrated by
the following flow chart:
Source: - Association of Mutual Funds in India (AMFI)
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20
An 'Open ended' fund is available for purchase or redemption on
continuous basis at the
day's closing Net Asset Value (NAV). This gives liquidity to
investments.
A 'Close ended' fund is open for investment only during the
Initial Public Offer (IPO) after
which the investment is locked in until the maturity date which
could be between 3-7yrs. The
investor can, however, sell or buy the shares of the funds on
the stock exchange where the
shares are listed.
Interval funds combine the characteristics of both 'open end'
and close end funds. They
can be bought or redeemed by the investor at predetermined
times, say once in six or twelve
months.
'Growth' oriented funds aim at providing capital appreciation.
They tend to invest primarily
in equities.
'Income' funds aim at providing regular income to investors.
They generally invest a major
portion of their assets in fixed income earning instruments such
as government securities,
corporate bonds and money market instruments. Their returns are
determined by fluctuations
in interest rates.
'Balanced fund' tries to provide both capital appreciation and
regular income. They invest in
both equities and fixed income securities. They specify the
maximum equity exposure in the
prospectus and is normally 60 percent; of late other types of
balanced funds such as "Asset
Allocation funds and 'Arbitrage funds' have also emerged. Asset
allocation funds, such as the
Franklin Templeton (FT) PIE ratio funds, allocate funds to
equity or debt depending on the
dynamic situation. They tend to increase exposure to equity
during a market downturn and
move out during market peaks. The FT PIE ratio fund uses the
market PIE ratio to determine
the degree of equity exposure.
Arbitrage funds are funds that try to capitalize on the
arbitrage opportunities that arise out
of pricing mismatch of stocks in the equity and derivative
(futures and options) segments of
the stock market (Value Research Inc.). They invest
predominantly in equities 'Money
Marker. Funds invest only in short term debt such as call money,
treasury bills and
commercial paper. In the case of these funds the Net Asset Value
is simply the interest
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21
accrued on these investments on a daily basis. Their NAV does
not fall below the initial
investment value, unlike bond funds which are marked to
market.
Tax saving funds give an investor tax benefits under section 80
C of the Income Tax Act.
Such funds also termed as Equity Linked Saving Schemes (ELSS),
have a lock in period of
three years. By investing in such funds a person can avail of a
maximum of rupees one
hundred thousand in tax deductions. ELSSs are normally
diversified equity funds.
Index funds invest in securities of a particular index such as
the Bombay Stock Exchange
(BSE) sensex in the same proposition. They provide returns which
are close to that of the
benchmark index with similar risks as well. It is a passive
investment approach with lower
costs.
Sector specific funds focus their investments on specific
sectors which the fund manager
feels would do well. For instance, Franklin FMCG fund invests
only in shares of companies
that produce fast moving consumer goods.
Exchange Traded Fund's (ETF) are relatively a new concept in
India. Such funds are
essentially index funds that are listed and traded on the stock
markets. There are also
commodities ETFs such as Reliance hold ETF.
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2.4 - Advantage of Mutual Fund
Diversification - It can help an investor diversify their
portfolio with a minimum investment.
Spreading investments across a range of securities can help to
reduce risk. A stock mutual
fund, for example, invests in many stocks. This minimizes the
risk attributed to a
concentrated position. If a few securities in the mutual fund
lose value or become worthless,
the loss may be offset by other securities that appreciate in
value. Further diversification can
be achieved by investing in multiple funds which invest in
different sectors.
Professional Management - Mutual funds are managed and
supervised by investment
professional. These managers decide what securities the fund
will buy and sell. This
eliminates the investor of the difficult task of trying to time
the market.
Well regulated - Mutual funds are subject to many government
regulations that protect
investors from fraud.
Liquidity - It's easy to get money out of a mutual fund.
Convenience - We can buy mutual fund shares by mail, phone, or
over the Internet.
Low cost - Mutual fund expenses are often no more than 1.5
percent of our investment.
Expenses for Index Funds are less than that, because index funds
are not actively managed.
Instead, they automatically buy stock in companies that are
listed on a specific index
Transparency - Mutual fund offer document provides all the
information about the fund and
the scheme. This document is also called as the prospectus or
the fund offer document, and is
very detailed and contains most of the relevant information that
an investor would need.
Choice of schemes - There are different schemes which an
investor can choose from
according to his investment goals and risk appetite.
Tax benefits - An investor can get a tax benefit in schemes like
ELSS (equity linked saving
scheme)
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2.5 - Mutual Fund Industry Trend
Growth of Mutual Fund Industry
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. Unit Trust of India
(UTI) was established on 1963 by an Act of Parliament. It was
set up 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 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 assets under management.
The year 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 Canbank 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. 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, 1993 was 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 mergers and 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.
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24
Indian mutual fund industry has grown at a Compounded Annual
Growth Rate
(CAGR) of 15 per cent from FY07 to FY13, the growth performance
in the recent years
have been rather subdued. However, Assets under Management (AUM)
as a per cent of
GDP for India is about 5 to 6 per cent, significantly lower than
some other emerging
economies, for example, 40 percent for Brazil and around 33 per
cent for South Africa.
This indicates significant headroom for growth. However, the
industry growth will
continue to be characterized by external factors such as
volatility and performance of the
capital markets, and macro-economic drivers such as GDP growth,
inflation and interest
rates.
The Indian mutual fund industry has shown relatively slow growth
in the period FY
10-13 growing at a CAGR of approximately 3.2 per cent. Average
(AUM) stood at INR
8,140 billion as of September 2013. However, AUM increased to
INR 8,800 billion as of
December 2013. Lackluster stock market performance, rising
inflation and anticipation of a
rise in interest rates has led to a tapering of growth in the
Indian mutual fund industry in the
recent years.
In comparison to global markets, Indias AUM penetration as a per
cent of GDP is
between 5-6 per cent while it is around 77 per cent for the
U.S., 40 per cent for Brazil and
31 per cent for South Africa. Despite the relatively low
penetration of mutual funds in
India, the market is highly concentrated. Though, there are44
AMCs operating in the sector,
approximately 80 per cent of the AUM is concentrated with 8 of
the leading players in the
market. There have been recent instances of consolidation in the
market and market
concentration is expected to remain in the near-term.
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25
Trends in Mutual Fund Industry
A. Number of Schemes under Mutual Funds
Year Debt Income Balanced ETFs Overseas Total
2010-11 679 376 32 28 16 1131
2011-12 872 352 30 35 20 1309
2012-13 857 347 32 37 21 1294
2013-14 1178 363 30 40 27 1638
No. of Scheme of MFs
1800
1600 1638
1400 1309
1200 1294
1000 1131
800
600
400
200
0
2010-11 2011-12 2012-13 2013-14
Source: SEBI
The total number of schemes under MFs has increased during the
period 2010-14 and it
increased very steeply between 2012-13 to 2013-14. The growth
rate of number of schemes
in debt is greater than income, balanced, ETFs and overseas.
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26
B. Allocation of assets in India by company wise.
ICICI 118,056 JPMorgan 14,544 Indiabulls 1,424
Reliance 112,914 LIC NOMURA 9,489 Mirae Asset 937
Birla Sun 98,556 HSBC 8,275 Motilal Oswal 758
UTI 79,441 Baroda 8,176 Pinebridge 636
SBI 69,213 JM Financial 6,957 ING 557
Franklin 50,987 IDBI 6,742 PPFAS 443
IDFC 43,694 Canara 6,482 Quantum 414
Kotak 35,521 Goldman Sachs 6,179 Escorts 264
DSP block 33,113 PRINCIPAL 4,848 Edelweiss 212
TATA 23,022 Taurus 4,083 IIFL 210
Dautsche 20,878 BNP Paribas 3,661 Shriram 26
AXIS 20,268 Union KBC 3,531 Sahara 2
L&T 19,894 Peerless 3,509
Total - 986,054 Sundram 17,673 BOI AXA 2,378 Religare 16,142
Pramerica 1,909
HDFC 13%
ICICI 12%
Reliance 11%
Birla Sun 10%
UTI 8%
SBI 7%
Franklin 5%
IDFC 4%
Kotak 4%
DSP block 3%
TATA 2%
Dautsche 2%
AXIS 2%
L&T 2%
Sundram 2%
Religare 2%
JPMorgan 1%
LIC NOMURA 1%
HSBC 1%
Baroda 1%
JM Financial
1%
IDBI 1%
Canara 1%
Goldman Sachs
1%
PRINCIPAL 0%
Taurus 0%
BNP Paribas
0%
Union KBC 0%
Peerless 0%
BOI AXA 0% Pramerica
0% Indiabulls
0%
Mirae Asset 0%
Motilal Oswal 0%
Pinebridge 0%
ING 0%
PPFAS 0%
Quantum 0%
Escorts 0%
Edelweiss 0% IIFL
0% Shriram
0% Sahara
0%
AuM in india by company wise allocation of may, 2014
-
27
C. Assets under Management Diversification for 2013-2014 by
Investment
Options.
56%
0%
20%
2%
16%
1%
3%
1%
1%
0%
Assets under management diversification for 2013-2014 year
Income infra debt equity balanced liquid gilt equity-elss
gold-etf other etf FoF
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28
2.6 - Invest in Mutual Funds
How to Invest in Mutual Funds?
An investor is investing his money in mutual fund by follow the
following steps:
Step One - Identify Investors investment needs
Your financial goals will vary, based on your age, lifestyle,
financial independence,
family commitments, level of income and expenses among many
other factors. Therefore, the
first step is to assess your needs. Begin by asking yourself
these questions:
1. Investment objectives and needs
Probable Answers: I need regular income or need to buy a home or
finance a wedding or
educate my children or a combination of all these needs.
2. Calculation of risk
Probable Answers: I can only take a minimum amount of risk or I
am willing to accept the
fact that my investment value may fluctuate or that there may be
a short term loss in order to
achieve a long term potential gain.
3. Cash flow for Mutual Fund
Probable Answers: I need a regular cash flow or I need a lump
sum amount to meet a specific
need after a certain period or I dont require a current cash
flow but I want to build my assets
for the future. By going through such an exercise, you will know
what you want out of your
investment and can set the foundation for a sound Mutual Fund
Investment strategy.
Step Two - Choose the right Mutual Fund
Once you have a clear strategy in mind, you now have to choose
which Mutual Fund
and scheme you want to invest in. The offer document of the
scheme tells you its objectives
and provides supplementary details like the track record of
other schemes managed by the
same Fund Manager. Some factors to evaluate before choosing a
particular Mutual Fund are:
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29
The track record of performance over the last few years in
relation to the appropriate
yardstick and similar funds in the same category.
How well the Mutual Fund is organized to provide efficient,
prompt and personalized
service.
Degree of transparency as reflected in frequency and quality of
their communications.
Step Three - Select the ideal mix of Schemes
Investing in just one Mutual Fund scheme may not meet all your
investment needs. You may
consider investing in a combination of schemes to achieve your
specific goals.
The following charts could prove useful in selecting a
combination of schemes that satisfy
your needs.
-
30
Step Four - Invest regularly
For most of us, the approach that works best is to invest a
fixed amount at specific intervals,
say every month. By investing a fixed sum each month, you get
fewer units when the price is
high and more units when the price is low, thus bringing down
your average cost per unit.
This is called rupee cost averaging and is a disciplined
investment strategy followed by
investors all over the world. With many open-ended schemes
offering systematic investment
plans, this regular investing habit is made easy for you.
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31
Step Five - Keep investors taxes in mind
As per the current tax laws, Dividend/Income Distribution made
by mutual funds is exempt
from Income Tax in the hands of investor. However, in case of
debt schemes
Dividend/Income Distribution is subject to Dividend Distribution
Tax. Further, there are
other benefits available for investment in Mutual Funds under
the provisions of the prevailing
tax laws. You may therefore consult your tax advisor or
Chartered Accountant for specific
advice to achieve maximum tax efficiency by investing in mutual
funds.
Step Six - Start early
It is desirable to start investing early and stick to a regular
investment plan. If you start now,
you will make more than if you wait and invest later. The power
of compounding lets you
earn income on income and your money multiplies at a compounded
rate of return.
Step Seven - The final step
All you need to do now is to get in touch with a Mutual Fund or
your advisor and start
investing. Reap the rewards in the years to come. Mutual Funds
are suitable for every kind of
investor whether starting a career or retiring, conservative or
risk taking, growth oriented or
income seeking.
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32
Chapter- 3
Methodology
3.1 Research Methodology
3.2 Research Design
3.3 Tools for Data analysis
3.4 Scope of the study
3.5 Limitations of the Study
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33
3.1 Research Methodology
Research is the process of systematic and in-depth study or
search for any particular
topic, subject or area of investigation, backed by data
collection. Complication, presentation
and interpretation of relevant details or data. It is a careful
search or inquiry into any subject
matter, which is an endeavour to discover or find out valuable
facts that would be useful for
further application or utilization.
Research methodology is the systematic problem analysis, model
building and fact
finding for the purpose of improved decision making. It is the
collection summary and
analysis of data regarding goods and services it helps in
deciding the nature and tend demand.
Research may involve a scientific study or experimentation and
result in discovery or
invention, which would aid either scientific development or
decision making.
Title of Research
PERFORMANCE OF MUTUAL FUNDS
Objectives of Research
a) To know the value of mutual funds in India and their major
aspects.
b) To know the various fund offered by the mutual funds in
India.
c) To identify the level of risk involved in investing in
various equity diversified
mutual fund schemes.
d) To know various regulatory firm of mutual funds in India.
e) To know the organizational structure of a mutual funds.
f) To know the best mutual funds investment plan like Systematic
investment plan.
g) To know the steps of how to invest in mutual fund by
investor
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34
3.2 Research Design
The research design refers to the overall strategy that you
choose to integrate the
different components of the study in a coherent and logical way,
thereby, ensuring you will
effectively address the research problem; it constitutes the
blueprint for the collection,
measurement, and analysis of data.
A method and system a statical analysis based on past history to
facilitate the
investment process. Respective fund using a principal factor
such as cumulative growth and
stability. For tracking investment, upper and lower control
limits are defined according to
standard deviation of average total return over predetermine
period of time to improve
chances of the investors achieving a profit as well as a near
optimum performance. This
research methodology helps us to give information about the
opportunities of mutual funds
investment. It will help to study the market of mutual funds
better. All mutual fund
companies and their return on investment.
Sample Size
19 Mutual Funds of different companies.
Sampling Method
Random Sampling
Method of data collection
There are many methods of data collection which can be used
according to nature and
type of research. I will use following data for the research
purpose. My research only based
on secondary data.
Secondary data
Articles
Factsheet
Management generals
Annual report
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35
Research papers
Internet
Companies product voucher
News papers
3.3 Tools and techniques for data Analysis
1. Return on investment
a. Point-to-point or absolute return:
b. Total return:
c. Compound Annual Growth Rate (CAGR):
2. Graph
3. Chart
3.4 Scope of the Study
a. Scope of the study is to understand the various mutual fund
product and services
offered by AMCs to the individual customers and to find out the
returns given by
funds and the customer expectations
b. The study was done by taking 10 to 15 mutual fund companies
and their products.
c. In this project data has been taken from 2007 to 2008.
3.5 Limitations of the study
a. Time constraints: - Due to shortage or less availability of
time it may be possible
that all the related and concerned aspect may not be covered in
the project.
b. Analysis done is limited to the availability of data.
-
36
Chapter- 4
Data Analysis and Interpretation
4.1 Birla sun life Special Situation Fund
4.2 Birla sun life Commodities Equities Fund Global gain
plan
4.3 BNP Paribas Bond Fund
4.4 Edelweiss ELSS Fund
4.5 Edelweiss short term Income Fund
4.6 Franklin India Ultra Short Bond Fund
4.7 Franklin Asian Equity Fund
4.8 HDFC Infrastructure Fund
4.9 UTI India Lifestyle Fund
4.10 UTI Transportation and Logistics Fund
4.11 UTI CCP Advantage Fund
4.12 Kotak Emerging Equity Fund
4.13 Kotak global Emerging Market Fund
4.14 Kotak Gold ETF Fund
4.15 Kotak PSU Bank ETF
4.16 SBI Infrastructure Fund
4.17 DSP Black Rock Tax Saver Fund
4.18 BOI AXA Equity Fund
4.19 BOI AXA Short Term Income Fund
-
37
Data Analysis & Interpretation
4.1 Birla Sun Life Special Situation Fund
Scheme Details
Fund Type Open-Ended
Investment Plan Growth
Launch date Jan 01, 2008
Benchmark S&P BSE 200
Asset Size (Rs cr) 133.85 (Jun-30-2014)
Minimum Investment Rs.5000
Last Dividend N.A
Bonus N.A.
Fund Manager Anil Shah
Notes N.A
Load Details
Entry Load N.A
Exit Load 1.00%
Load Comments Exit Load of 1% if redeemed within 365 Days from
the date of
allotment.
Quarterly Average AUM: 146.30 Crores (as on 30st June 2014)
Interpretation: -
1. From inception this fund has given 52.2% return 2. From the
last one year this fund has given 65% return.
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38
4.2 Birla Sun Life Commodities Equities Fund Global Gain
Plan
Scheme Details
Fund Type Open-Ended
Investment Plan Growth
Launch date Sep 9, 2008
Benchmark N.A
Asset Size (Rs cr) 13.57 (Jun-30-2014)
Minimum Investment Rs.5000
Last Dividend N.A.
Bonus N.A.
Fund Manager Vineet Maloo
Notes Birla Sun Life Commodity Equities Fund - Global Precious
Metals
Plan and irla Sun Life Commodity Equities Fund-Global Multi
Commodity Plan has been merged with Birla Sun Life Commodity
Equities Fund-Global Agri Plan w.e.f. July 19, 2013
Load Details
Entry Load N.A
Exit Load 1.00%
Load Comments Exit Load of 1% if redeemed within 365 Days from
the date of
allotment.
Quarterly Average AUM: 13.77 Crores (as on 30th June 2014)
Interpretation: -
1. From inception this fund has given 50% return 2. From the
last one year this fund has given 10.6% return.
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39
4.3 BNP Paribas Bond Fund
Scheme Details
Fund Type Open-Ended
Investment Plan Growth
Launch date Sept 29, 2008
Benchmark CRISIL Composite Bond Fund
Asset Size (Rs cr) 195 Crores (Jun-30-2014)
Minimum Investment Rs.5000
Last Dividend N.A.
Bonus N.A.
Fund Manager Puneet Pal
Notes Fortis Mutual Fund have been acquired by BNP Paribas
Asset
Management, Accordingly, all existing schemes of Fortis
Mutual
Fund has been renamed with BNP Paribas with effect from
October
19, 2010.
Load Details
Entry Load N.A
Exit Load 1.00%
Load Comments Exit load 1% if redeemed / switched out upto 1
year from the date of
subscription.
Quarterly Average AUM: 24.70 Crores (as on 30th June 2014)
Interpretation: -
1. From inception this fund has given 7.89% return 2. From the
last one year this fund has given 8.4% return.
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40
4.4 Edelweiss ELSS Fund Scheme Details
Fund Type Open-Ended
Investment Plan Growth
Launch date Dec 26, 2008
Benchmark CNX 500
Asset Size (Rs cr) 32.96 (Jun-30-2014)
Minimum Investment Rs.500
Last Dividend N.A.
Bonus N.A.
Fund Manager Paul Parampreet / Dhilip Krishna
Notes N.A
Load Details
Entry Load N.A
Exit Load 0.00%
Load Comments N.A.
Quarterly Average AUM: 13.25 Crores (as on 30th June 2014)
Interpretation: -
1. From inception this fund has given 213% return 2. From the
last one year this fund has given 42% return.
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41
4.5 Edelweiss Short Term Income Fund
Scheme Details
Fund Type Open-Ended
Investment Plan Growth
Launch date Sep 23, 2008
Benchmark CRISIL Short Term Bond Fund
Asset Size (Rs cr) 8.71 (Jun-30-2014)
Minimum Investment Rs.10000
Last Dividend N.A.
Bonus N.A.
Fund Manager Bhavesh D. Jain
Notes Open for Fresh Investments.
Load Details
Entry Load N.A
Exit Load 0.50%
Load Comments Exit load of 0.50% if the units are redeemed /
switched-out within 2
months from the date of allotment.
Quarterly Average AUM: 4.90 Crores (as on 30th June 2014)
Interpretation: -
1. From inception this fund has given 6.90% return
2. From the last one year this fund has given 8.49% return.
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42
4.6 Franklin India Ultra Short Bond Fund
Scheme Details
Fund Type Open-Ended
Investment Plan Growth
Launch date Dec 18, 2007
Benchmark CRISIL Liquid Fund
Asset Size (Rs cr) 3,213.26 (Jun-30-2014)
Minimum Investment Rs.10000
Last Dividend N.A.
Bonus N.A.
Fund Manager Sachin Desai / Pallab Roy
Notes Open for Subscription
Load Details
Entry Load N.A
Exit Load 0.00%
Load Comments N.A.
Quarterly Average AUM: 4.90 Crores (as on 30th June 2014)
Interpretation: -
1. From inception this fund has given 7.91% return
2. From the last one year this fund has given 9.31% return.
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43
4.7 Franklin Asian Equity Fund
Scheme Details
Fund Type Open-Ended
Investment Plan Growth
Launch date Nov 19, 2007
Benchmark N.A
Asset Size (Rs cr) 150.7 (Jun-30-2014)
Minimum Investment Rs.5000
Last Dividend N.A.
Bonus N.A.
Fund Manager Roshi Jain / Murali Yerram
Notes N.A
Load Details
Entry Load N.A
Exit Load 1.00%
Load Comments Exit Load 1% if units are redeemed / switched-out
within 1 year from
the date of allotment.
Quarterly Average AUM: 93.85 Crores (as on 30th June 2014)
Interpretation: -
1. From inception this fund has given 9.35% return 2. From the
last one year this fund has given 5.18% return.
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44
4.8 HDFC Infrastructure Fund
Scheme Details
Fund Type Open-Ended
Investment Plan Growth
Launch date Jan 08, 2008
Benchmark CNX 500
Asset Size (Rs cr) 918.01 (Jun-30-2014)
Minimum Investment Rs.5000
Last Dividend N.A.
Fund Manager Prashant Jain / Srinivas Rao Ravuri
Load Details
Entry Load N.A
Exit Load 1.00%
Load Comments Exit Load 1% if units are redeemed / switched-out
within 1 year from
the date of allotment.
Quarterly Average AUM: 698.65 Crores (as on 30th June 2014)
Interpretation: -
1. From inception this fund has given 9.10% return
2. From the last one year this fund has given 99.86% return.
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45
4.9 UTI India Lifestyle Fund
Scheme Details
Fund Type Open-Ended
Investment Plan Growth
Launch date Jul 30, 2007
Benchmark CNX 500
Asset Size (Rs cr) 303.56 (Jun-30-2014)
Minimum Investment Rs.5000
Last Dividend N.A.
Bonus N.A.
Fund Manager Lalit Nambiar
Notes UTI India Lifestyle Fund a close ended equity scheme has
been
converted into open ended equity oriented scheme with effect
from
July 16, 2010.
Load Details
Entry Load N.A
Exit Load 1.00%
Quarterly Average AUM: 232.54 Crores (as on 30th June 2014)
Interpretation: -
1. From inception this fund has given 15.81% return 2. From the
last one year this fund has given 38.55% return.
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46
4.10 UTI Transportation and Logistics Fund
Scheme Details
Fund Type Open-Ended
Investment Plan Growth
Launch date Apr 11, 2008
Benchmark N.A
Asset Size (Rs cr) 89.66 (Jun-30-2014)
Minimum Investment Rs.5000
Last Dividend N.A.
Bonus N.A.
Fund Manager Anoop Bhaskar / Daylynn Pinto
Load Details
Entry Load N.A
Exit Load 1.00%
Load Comments Exit Load 1% if redeemed within 1 Year from the
date of allotment.
Quarterly Average AUM: 50.29 Crores (as on 30th June 2014)
Interpretation: -
1. From inception this fund has given 29.73 % return 2. From the
last one year this fund has given 144.85 % return
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47
4.11 UTI CCP Advantage Fund
Scheme Details
Fund Type Open-Ended
Investment Plan Growth
Launch date Jan 30, 2008
Benchmark CRISIL Balance Fund
Asset Size (Rs cr) 96.63 (Jun-30-2014)
Minimum Investment Rs.1000
Last Dividend N.A.
Bonus N.A.
Fund Manager Kaushik Basu.
Notes Earlier call UTI Childrens Career Bond Plan
Load Details
Entry Load N.A
Exit Load 4.00%
Load Comments Exit Load of 4% if exited < 1 years, 3% if
exited >=1 years & < 3
years, 1% if exited >=3 years & < 5 years.
Quarterly Average AUM: 90 Crores (as on 30th June 2014)
Interpretation: -
1. From inception this fund has given 12.06% return 2. From the
last one year this fund has given 44.27% return.
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48
4.12 Kotak Emerging Equity Scheme
Scheme Details
Fund Type Open-Ended
Investment Plan Growth
Launch date Feb 12, 2007
Benchmark S&P BSE MIDCAP
Asset Size (Rs cr) 69.33 (Jun-30-2014)
Minimum Investment Rs.5000
Last Dividend N.A.
Bonus N.A.
Fund Manager Pankaj Tibrewal
Load Details
Entry Load N.A
Exit Load 1.00%
Load Comments Exit Load of 1% if redeemed within 2 year from the
date of allotment.
Quarterly Average AUM: 37.19 Crores (as on 30th June 2014)
Interpretation: -
1. From inception this fund has given 17.98% return 2. From the
last one year this fund has given 97.24% return.
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49
4.13 Kotak Global Emerging Market Fund
Scheme Details
Fund Type Close-Ended
Investment Plan Growth
Launch date Sept 26, 2007
Benchmark N.A
Asset Size (Rs cr) 59.33 (Jun-30-2014)
Minimum Investment Rs.5000
Last Dividend N.A.
Bonus N.A.
Fund Manager Deepak Gupta / Abhishek Bisen
Load Details
Entry Load N.A
Exit Load 1.00%
Load Comments Exit Load of 1% if redeemed within 1 year from the
date of allotment.
Quarterly Average AUM: 50 Crores (as on 30th June 2014)
Interpretation: -
1. From inception this fund has given 10.76 % return 2. From the
last one year this fund has given 6.49 % return.
-
50
4.14 Kotak Gold ETF Fund
Scheme Details
Fund Type Open-Ended
Investment Plan Dividend
Launch date Jun 20, 2007
Benchmark Price of Gold
Asset Size (Rs cr) 857.53 (Jun-30-2014)
Minimum Investment Rs.10000
Last Dividend N.A.
Bonus N.A.
Fund Manager Abhishek Bisen
Load Details
Entry Load N.A
Exit Load 0.00%
Quarterly Average AUM: 696.16 Crores (as on 30th June 2014)
Interpretation: -
1. From inception this fund has given 9.52% return 2. From the
last one year this fund has given -12.61% returns.
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51
4.15 Kotak PSU Bank ETF
Scheme Details
Fund Type Open-Ended
Investment Plan Dividend
Launch date Nov 08, 2007
Benchmark CNX PSU Bank
Asset Size (Rs cr) 14.90 (Jun-30-2014)
Minimum Investment Rs.10000
Last Dividend Rs.20.00 (Feb-25-2013)
Bonus N.A.
Fund Manager Deepak Gupta
Load Details
Entry Load N.A
Exit Load 0.00%
Quarterly Average AUM: 6.98 Crores (as on 30th June 2014)
Interpretation: -
1. From inception this fund has given 4.81% return 2. From the
last one year this fund has given 51.69% return.
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52
4.16 SBI Infrastructure Fund
Scheme Details
Fund Type Open-Ended
Investment Plan Growth
Launch date May 11, 2007
Benchmark CNX Infra
Asset Size (Rs cr) 531.61 (Jun-30-2014)
Minimum Investment Rs.5000
Last Dividend N.A.
Bonus N.A.
Fund Manager Ajit Dange
Load Details
Entry Load N.A
Exit Load 1.00%
Load Comments Exit Load 1% if units are redeemed / switched-out
within 1 year from
the date of allotment.
Quarterly Average AUM: 2.35 Crores (as on 30th June 2014)
Interpretation: -
1. From inception this fund has given 5.3 % return 2. From the
last one year this fund has given 61.4 % return.
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53
4.17 DSP Black Rock Tax Saver Fund
Scheme Details
Fund Type Open-Ended
Investment Plan Growth
Launch date Jan 18, 2007
Benchmark CNX 500
Asset Size (Rs cr) 808.27 (Jun-30-2014)
Minimum Investment Rs.500
Last Dividend N.A.
Bonus N.A.
Fund Manager Apoorva Shah
Notes N.A
Load Details
Entry Load N.A
Exit Load 0.00%
Load Comments N.A.
Quarterly Average AUM: 563.14 Crores (as on 30th June 2014)
Interpretation: -
1. From inception this fund has given 16.25 % return
2. From the last one year this fund has given 58.28 %
return.
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54
4.18 BOI AXA Equity Fund
Scheme Details
Fund Type Open-Ended
Investment Plan Growth
Launch date Sept 04, 2008
Benchmark CNX NIFTY
Asset Size (Rs cr) 50.12 (Jun-30-2014)
Minimum Investment Rs.5000
Last Dividend N.A.
Bonus N.A.
Fund Manager Saurabh Kataria
Notes Bank of India have acquired 51% stake in the joint venture
from
Bharti Ventures and AXA Investment Managers Asia Holdings
w.e.f. May 23, 2012. Hence the name of the schemes will be
pre
fixed with BOI AXA in place of Bhati AXA.
Load Details
Entry Load N.A
Exit Load 1.00%
Quarterly Average AUM: 36.4 Crores (as on 30th June 2014)
Interpretation: -
1. From inception this fund has given 12.66% return 2. From the
last one year this fund has given 44.53% return
-
55
4.19 BOI AXA Short Term Income Fund
Scheme Details
Fund Type Open-Ended
Investment Plan Growth
Launch date Dec 03, 2008
Benchmark CRISIL Short Term Bond Fund
Asset Size (Rs cr) 23.21 (Jun-30-2014)
Minimum Investment Rs.5000
Last Dividend N.A.
Bonus N.A.
Fund Manager Alok Singh
Load Details
Entry Load N.A
Exit Load 0.50%
Load Comments Exit load 0.5% if redeemed within 45 days from the
date of allotment.
Quarterly Average AUM: 17 Crores (as on 30th June 2014)
Interpretation: -
1. From inception this fund has given 6.34% return
2. From the last one year this fund has given 10.3% return.
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56
Chapter- 4 Conclusion
-
57
4.1 Conclusion
During the six years of study period, the Indian Mutual Fund
Industry (IMFI) had
shown a good progress in terms of number of private sector
Indian mutual funds, number of
schemes launched, funds mobilized and assets under management.
There had been a good
number of schemes been launched particularly in close-end type
with income objective. And
also I found so many facts and figures as follows:-
1. Investors agreed that, investing in mutual funds were less
risky compared to shares.
2. At present, the Indian Mutual Fund Industry is one among the
top 15 nations in terms of
AUM and is expected to grow to $500-600 billion by 2015
3. The industry continues to be dominated by the top players as
54% of the total AUM is
held by the top 5 fund houses.
4. Even though the mutual funds are growing steadily, only 5% of
the households are
investing in mutual funds, hence there is a long way to go.
5. Top 5 best performing funds which are issued in between year
of 2007-2008 on last
year performance.
Funds name Last year returns in %
UTI Transportation and Logistics Fund 144.85
HDFC Infrastructure Fund 99.86
Kotak Emerging Equity Scheme 97.24
BIRLA SUN LIFE special situation Fund 65
SBI Infrastructure Fund 61.4
6. Top 5 best performing funds which are issued in between year
of 2007-2008 on performance from since inception.
Funds name Returns since inception in
%
Edelweiss ELSS fund 213
Birla Sun Life Special Situation Fund 52.2
Birla sun life commodities equities fund global gain plan 50
UTI Transportation and Logistics Fund 29.73
Kotak Emerging Equity Scheme 17.98
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58
Bibliography
Research papers
A. Prof Gauri Prabhu, Dr N.M. Vechalekar Perception of Indian
Investor towards
investment in mutual funds with special reference to MIP Funds,
IOSR Journal of
Economics and Finance (IOSR-JEF) e-ISSN: 2321-5933, p-ISSN:
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B. Dr. Binod Kumar Singh, A study on investors attitude towards
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(March-2012)
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Websites
1. www.moneycontrol.com
2. www.economictimes.indiatimes.com
3. www.profit.ndtv.com
4. www.valueresearchonline.com
5. www.amfiindia.com
6. www.sebi.gov.in
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