CHAPTER-1 EXECUTIVE SUMMARY:- The project work is pursued as a part of MBA (FINANCE) Curriculum at LOVELY PROFESSIONAL UNIVERSITY, JALANDHAR. It is undertaken as a traineeship at Reliance securities Ltd. The project is done under expert supervision and guidance of prof. Miss Razia sehdeva (Lecturer Finance) and Mr SANTOSH JHA (Centre Manager, Reliance Securities under Reliance capital) the project is about the marketing and sales of financial products and also the efforts done to make improvements in the customer acquisition process for better results. At RELIANCE SECURITIES , initially the trainees were imparted process and product knowledge. They were given sufficient time to know about the products such as demate and trading A/C, Equity, ADB, Life insurance, Mutual fund, Structure product, currency, Terminal portal also about sales and distribution channel, They had to work with the sales representatives of the Distributor and think of ways of improving the sales and distribution channel and implementing them. 1 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
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CHAPTER-1
EXECUTIVE SUMMARY:-
The project work is pursued as a part of MBA (FINANCE) Curriculum at LOVELY
PROFESSIONAL UNIVERSITY, JALANDHAR. It is undertaken as a traineeship at
Reliance securities Ltd. The project is done under expert supervision and guidance of prof.
Miss Razia sehdeva (Lecturer Finance) and Mr SANTOSH JHA (Centre Manager, Reliance
Securities under Reliance capital) the project is about the marketing and sales of financial
products and also the efforts done to make improvements in the customer acquisition process
for better results.
At RELIANCE SECURITIES, initially the trainees were imparted process and product
knowledge. They were given sufficient time to know about the products such as demate and
complete customer satisfaction, by combining its human and technological resources, to
provide world class quality1services. In the process Reliance securities shall strive to meet
and exceed customer's satisfaction and set industry standards.
Mission statement
“Our mission is to be a leading and preferred service provider to our customers, and we aim to
achieve this leadership position by building an innovative, enterprising , and technology
driven organization which will set the highest standards of service and business ethics.”
27 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
COMPANY STRCTURE:
28 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
CHEAPTER-4
STUDY ABOUT PARAMETERS AND RATIO:
Return:-
Return on a typical investment consist of two components. The basis is the periodic cash
receipts (or income) on the investments, either in the form of interest or dividends. The
second component is the change in the price of the assets- commonly called the capital gain or
loss. The elements of returns is difference between purchase price and the price which the
assets can be or sold: there for it can be gain or loss .
The return has been calculated as under
NAV1- NAV2
Portfolio return: Rit=………….
Where Rit is the difference between net assets values for two consecutive days dividends by
the NAV of the preceding day.
M.indt - M-indt-1
Market return: Rmt=……………………………….
Risk: -
Risk neither good nor bad. Risk is holding securities is generally associated with the
possibility that realized return will be less than expected returns. The difference between the
required rate of returns on the mutual funds investment and the risk free return is the
premium. Risk can be measured in terms of Beta & standard deviation.
29 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
Standard deviation:-
it is use to measure the variation in individual returns from the average expected return over a
certain period. Standard deviation is used in the concept of risk of a portfolio of investment.
Higher standard deviation means great fluctuation in expected return.
SD=
Beta:-
Beta measure the systematic risk and how prices of securities respond to the market forces. It
is calculated by relating the return on a security with return for the market. By convention,
market will have beta 1.0. Mutual fund is said to be riskier than market. If beta is greater than
1. The indication is that stock is less risky in comparison to market. If beta is zero then the
risk is the same as that of the market.
Β = cover/(SD)2
Where, covariance (cover) is the average of the product of deviations for each data point pair.
And, cover is calculated as:
Covar= 1/n∑ (xi -µx) (Yi - µy)
Where, x= scheme returns.
Y= market returns.
µ= mean.
β= n∑xy-(∑x) (∑y)
n∑x2-(∑x) 2
Where, n=number of years
X= rolling return of the BSE index
Y= rolling return of the schemes
30 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
Sharpe index:-
Sharpe index measure risk premium of a portfolio, relative to the total amount of risk in the
portfolio. Sharp index summarizes the risk and return of a portfolio in a single measure that
categorizes the performance of funds of on the risk adjusted basis. The larger the Sharpe’s
index the portfolio over performs the market vise versa.
Formula to calculated Sharpe’s measure is:
St= Rp-Rf
Where,
St= Sharpe’s index
Rp= portfolio return
R= Risk free rate of return
SD= standard deviation of the portfolio
Treynor’s index; -
Treynor’s models is on the concept of the characteristics line. The characteristics line has
drawn relationship between market return and a specific portfolio without taking into
considerations any direct adjustment for risk. It is also known as reward to volatility ratio and
is defined as:
The formula for the treynor’s index is: =
Portfolio avg return (Rp)-risk free rate of interest (Rf)
Beta coefficient of portfolio (Bp)
Alpha:-
31 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
The size of alpha exhibits the stock unsystematic return and average return independent
market return. If the fund produced the excepted return at level of risk assumed, the fund
would have an alpha equal to zero. A positive alpha indicates that the manager produced
return greater than excepted for the risk taken.
Alpha is calculated by comparing the fund’s actual performance with the risk-
adjusted excepted return.
Where Rp= portfolio
Rf= risk free return (5%)
Rn= Average market return
Type of fund taken for analysis:
a) Large cap fund:
These are those type of funds which invest their money in large blue chip companies, having
with a market capitalization of more than Rs 1000 crores. Investing in large cap is a low risk-
return proportion because such funds are widely research and information available.
One of the advantage of large cap funds are that they are less volatile than mid cap and small
cap fund because investors are investing in this type of fund for a long term prospective and
help to keep these fund away from the volatile of the markets.
Top performer under this category:
1) HDFC Top 200 its compounded annualized returns of last 5 years is 24.5%
2) Reliance large cap fund: its compound annual returns of last 5 years is 22.6%
3) Franklin India blue chip : its compounded annual returns of last 5years 20.7%
4) Kotak 30: it’s compounded annualized returns of last 5 years 19%
5) DSPML top 100 equity: it’s returns last 5 years is 18.4%
Sectors funds:
32 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
These type of fund are investing their money in particular sector of the economy. Such as
infrastructure, Banking, Retail, FMCG, etc. these funds are more volatile than diversified
fund having stocks of many sectors. These short term investors, who are able to high risk
ability.
TOP performer under this category:
1) Reliance diversified power sectors fund (g): it’s compounded annualized returns of
last 5 years 27.8%
2) Reliance Banking fund (G): it’s compounded annual returns of last 5 years 25.7%.
3) Reliance Pharms (G): it’s compounded annual reports of last five years 5 years 25.4%.
4) ICICI Prudential infrastructure Fund (G): it’s compounded annual reports of last five
years is 20.5.
5) UTI Banking sectors fund (G): it’s compounded annual reports of last 5 years is
20.4%.
Diversified funds:
These are a kind of fund which invest their money in different sectors like FMCG,
infrastructure, pharms, etc. this help to diversified there Risk into various sectors. If one
sectors is going down then other sector may volatile in long term.
TOP performer funds under this categories:
1) IDFC Premium equity fund- plan (G): It’s compounded annual reports of last 5 years
is 26.9%.
2) Reliance regular saving fund- equity growth: it’s compounded annual reports of last 5
years is 26%.
3) HDFC Top 200 Growth: it’s compounded annual reports of last five year is 21.5%.
4) HDFC equity fund growth: it’s compounded annual report of last 5 year is 21.3%
5) Birla sun life frontline equity fund: it’s compounded annual reports of last 5 years is
21.2%.
33 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
RELIANCE MUTUAL FUND:
Reliance mutual fund is India’s leading mutual fund with the quarter average assets
under management (AAUM) of Rs 102066 crores.
Reliance mutual funds, a parts of the reliance – Anil dherubhai ambani group is one of
the fastest growing mutual funds in the country. RMF offers investors a well- rounded
portfolio of product to meet varying investor requirements and has presence in 159
cities across the country. Reliance Mutual fund constantly endeavours to launch
innovative product and customer service initiatives to increase value to investors.
Reliance mutual fund scheme managed by Reliance capital assets management
limited. A subsidiary of reliance capital limited, which holds 93.37% of the paid- up
capital of RCAM.
The scheme that I have taken for analysis from reliance mutual fund are:
RELIANCE BANKING FUND (G): the primary investment objective of the scheme
is to seek to generate continuous returns by actively investing in equity and equity
related or fixed income securities of companies in the banking sectors.
Fund overview:
Fund type open Ended
Investment plan Growth
Assets sizes Rs1466Crores
Launches date May 21, 2003
Benchmark Bank Nifty
Fund manager Mr. Sunil singhania
RELIANCE MEDIA & ENTERAINTMENT FUND (G):
The primary investment objective of the scheme is to generate consistent returns by
investing in equity/ equity related or fixed income securities of media & entertainment
and other associated companies.
34 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
Fund overview:
Fund type open Ended
Investment plan Growth
Assets sizes Rs112.05crores
Launch date Sep 27, 2007
Benchmark NA
Fund manager Mr. Sailesh Raj Bha
RELIANCE VISION (G): its objective is seeks to provide long term capital
appreciation by primarily investing in growth oriented stocks.
Fund overview:
Fund type open Ended
Investment plan Growth
Assets sizes Rs 61 crores
Launches date Aug’8, 2007
Benchmark BSE 100
Fund manager Mr. Ashwni Kumar
UTI MUTUAL FUND:
UTI mutual fund was started in14, January 2003 by UTI trustee co, pvt, ltd. For
managing the scheme of UTI mutual fund. UTIAMC provides professionally managed
back office support for all business service of UTI mutual fund in accordance with the
previous of the investment management agreement, the trust Deed, the SEBI
Regulators and the objective of the schemes.
Since February 3, 2004, UTIAMC is also registered portfolio management services.
UTIAMC also acts as the manager and marketer to offshore funds through is 100%
subsidiary. UTI international limited, registered in Guemsey, Channel Islands.
35 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
UTIAMC presently manages a capital of over Rs. 65, 38,724.42 lakhs as on 31st
December 2010. UTI mutual fund has a track record of managing a verity of scheme
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 fund with greater efficiency and accountability in the sole
interest of the unit holders.
UTIMF has consistently rest and upgrade transparency standards. All the branches,
UFCs and register offices are connected on a robust it network to ensure cost-
efficiency quick and efficient service.
The scheme that I have taken for analysis from UTI mutual fund are:
UTI INFRASTRUCTURE FUND (G): Investment objective is capital appreciation by
investing in the companies engaged in the sectors like Metals, Real Estate, and oil: Gas,
power, chemicals, Engineering etc.
Fund overview
Fund type open Ended
Investment plan Growth
Assets sizes Rs 1581 crores
Launch date Aor7, 2004
Benchmark BSE 100
Fund manager Mr. Sanjay Dongre
UTI LARGE EQUITY FUND (G): the scheme is designed specially for large
corporate investors who would like to invest large corporate investors and as well as
high net worth investors who like to invest large amount in executive scheme which
allows entry and exit at NAV.
Fund overview
Fund type open Ended
Investment plan Growth
36 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
Assets sizes Rs2170 crores
Launch date may18, 1992
Benchmark BSE sensitive index
Fund manager Mr. Anoop Bhaskar
UTI MID CAP FUND: It’s aims to provide to investors growth of capital over the
period of time by investing in mid cap stock as well as to make periodical distribution
of income from investment in stocks of respective sectors of the Indian economy.
Fund overview:
Fund types open Ended
Investment plan Growth
Assets sizes Rs375 crores
Launch date Apr 07, 2004
Bench mark CNX mid cap
Fund manager Mr. Anoop Bhaskar
SBI MUTUAL FUND:
SBI Mutual fund is India’s largest bank sponsored mutual fund and has a track record in
judicious investments and consistent and wealth creation. The fund traces its lineage to SBI
India largest banking enterprise. The institution has grown immensely since its inception and
today it is India largest bank, patronized by over 80% of the top corporate houses of the
country.
SBI mutual fund is a joint venture between the state bank of India and society General assets
management, one of the world’s leading fund management companies that manages over
USS$500 Billion worldwide. In twenty years of operation, the fund has launched 38 schemes
and successfully redeemed fifteen of them. In the process it has rewarded it’s investors
handsomely with consistent returns.
37 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
A total of over 5.8 million investors have respond their faith in the wealth generation
expertise of the mutual fund. Today the fund manager over Rs 42100 crores of assets and has
diverse profile of investors actively parking their investments across 38 active schemes. The
fund serves this vast family of investors by reaching out to them through network of over 130
points of acceptance, 29 investor service centres, 59 investor service desks and 6 investor
service points.
SBI mutual is the first bank-sponsored fund to launch an offshore fund – resurgent India
opportunity fund. The schemes that’s I have taken for analysis from SBI mutual fund are:
SBI MAGNUM SECTOR UMBRELLA- PHARMA (G):
It provides the investor’s maximum growth opportunity through equity investments in stocks
of growth oriented sectors called pharms in long run.
Fund overview:
Fund types open Ended
Investment plan Growth
Assets sizes Rs 39.69 crores
Launch date jul14, 1991
Benchmark BSE health care
Fund manager Mr. Sohini Andani
SBI MAGNAM EQUITY FUND (G): To provide investors long term capital appreciation
along with the liquidity of an open-ended scheme. The scheme will invest in a diversified
portfolio of equities of high growth companies.
Fund overview:
Fund types open Ended
Investment plan Growth
38 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
Assets sizes Rs 469 crores
Launches date jan1, 1991
Bench mark BSE100
Fund manager Mr.srinivas
SBI MAGNUM MID CAP: To provide investors with opportunities for long term growth in
capital along with the liquidity of an open ended scheme by investing predominantly in a
well-diversified basket of equity stocks of companies and in debt and money market
instruments.
Fund overview:
Fund type open ended
Investment plan Growth
Assets sizes Rs 303 crores
Launch date Mar 17, 2005
Benchmark CNX MID CAP
Fund manager Mr. Sohini Andani
FRANKLINE TEMPELTION MUTUAL FUND: Franklin tempeltion
investment is one of the largest financial service group in the world based at san matco,
California USA. The group has US$ 642.3 billion in assets under management globally.
Franklin tempeltion has offices in 33 location across India and manages average AUM of Rs.
42142.21crores for over 22 lakhs investors (as on September 30, 2010).
The schemes that I have taken for analysis from FRANKLINE TEMPLETION mutual fund
are:
39 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
FRANKLIN TEMPLETION FMCG FUND:
The scheme aim to long term capital appreciation through exclusively investing in shares of
fast moving consumer Goods companies.
Fund overview:
Fund types open Ended
Investment plan Growth
Assets plan Rs 51crores
Bench mark NA
Fund manager Anil prabhudas
JM FINANCIAL MUTUAL FUND:
It is one of India’s first private sector mutual funds an integral part of the first wave that
commenced operations in 1993-1994.it is a part of JM financial Group, which has a rich
heritage, built over three decade.
Groups origins can be traced back to the 1950s when the company family began to get
involved in India’s the capital markets. JM financial & investment consultancy service was
founded on September 15, 1973.
JM financial Assets management private limited started operations in December 1994 with a
simultaneous launch of three funds-JM liquid fund (now JM income fund), JM equity fund
and JM balanced fund. Today, JM financial mutual fund offers a bouquet of fund that caters
to the diverse needs for both its institutional and individual investors.
Its mission is manage risk while generating top quartile returns across all products categories.
We believe that cultivate investors loyalty, we must provide a safe haven for their investment.
We focused on helping our investors realize that investment goal through the prudent advice,
40 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
judicious fund management, accurate research and strong system of managing risk
scientifically.
The scheme that I have taken for analysis from JM financial mutual fund are:
JM LARGE CAP FUND (G): the scheme aim to provide long term capital appreciation
from a portfolio that is invested predominantly in liquid and equity related instruments in the
health care sectors.
Fund overview:
Fund type open ended
Investment plan Growth
Assets sizes Rs 51 crores
Bench mark BSE health care sectors.
Fund manager Mr. Sanjay chhabaria
JM MID CAP FUND: the investment objective of the scheme is to provide capital
appreciation by primarily investing in small and mid-cap stocks.
Fund type open ended
Investment plan Growth
Assets sizes Rs 9.7 crores
Launch date Jun 9, 2004
Fund manager MR. Sanjay chhabaria
41 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
JM SMALL & MID CAP FUND: the investment objective of the scheme is to provide
capital appreciation by primarily investing in small and mid-cap stocks
Fund overview:
Fund type open ended.
Investment plan Growth
Assets sizes Rs 5.8crores
Launch date Mar9, 2007
Bench mark CNX MID CAP
Fund manager MR. Sanjay chhabaria
BIRLA SUN LIFE MUTUAL FUND: Birla Sun Life Assets Management Company Ltd
(BSLAMC) between the Aditya Birla Group and the sun life financial service Inc. of Canada.
The joint venture bring together Aditya Birla Group’s experience in the Indian market and sun
life global experience.
Birla Sun life mutual fund is established in 1994. It offer a range of investment opportunities,
including diversified fund and sector specific equity scheme fund, hybrid scheme fund and
monthly income fund, a wide range of debt and treasury products and offshore funds.
BSLAMC is one of the largest team of research analysis in the industries, dedicated to taking
down the best companies to invest in. BSLAMC strive to provide transparent, ethical and
research based investments and wealth management services.
The scheme I have taken to analysis from sun life mutual fund are:
BIRLA SUNLIFE ADVANTAGE FUND: To achieve long term growth of capital through
investment mainly in equity and equity related instrument.
42 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
Fund overview:
Fund type open ended
Investment plan Growth
Assets sizes Rs414 crores
Launch date Feb 24, 1995
Bench mark BSE sensitive index
Fund manager Mr. Ajay Agral
BIRLA SUN LIFE SMALL AND MID CAP FUND: its objective is to generate consistent
long term capital appreciation by investing predominantly in equity and equity related
securities of companies considered to small and mid-cap it may also invest in certain portion
of its corpus in fixed income securities including money market instrument in order to meet
liquidity requirement of time to time.
Fund overview:
Fund type open ended
Investment plan Growth
Assets sizes Rs189 crores
Launch date Apr 9, 2007
Bench mark CNX MID CAP
Fund manager Mr. Ankit sancheti
KOTAK MAHINDRA MUTUAL FUND: kotak Mahindra is one of the leading financial
institutions, offering complete financial solution encompass every sphere of life. From
commercial banking, to stock broking, to mutual fund, to life insurance, to invest banking,
the group cater to financial need of individual and corporate.
The group has net worth of Rs 7,911crore and employs around 20000 employees across its
various business, servicing around 7 million customer accounts through a distribution network
of 1716 Branches, franchise and satellite offices across more than 470 cities and towns in
India and offices in New York, Caledonia, San Francisco, London, Mauritius and Singapore.
43 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
Kotak Mahindra Assets Management Company Limited (KAMAMC), a wholly owned
subsidiary of KMBL, is the asset manager for kotak Mahindra mutual fund (KMMF).
KMAMC, is started operation in December 1998 and has over 10 lac investors in various
scheme. KMMF offers schemes creating to investors with varying risk – return profile and
was the first fund house in the country to launch a dedicated gilt scheme investing only in
government securities.
Fund overview:
Fund type open ended
Investment plan Growth
Launch date Jan 28, 2005
Bench mark CNX Nifty junior
Fund Manager Mr. Pankaj Tibrewal
KOTAK EQUITY FUND: To generate long term capital appreciation from a portfolio
creating by investing predominately in open-ended diversified equity schemes of mutual fund
registered with SEBI.
Fund overview:
Fund type open ended
Investment plan Growth
Assets sizes Rs 49 crores
Launch date Aug 09, 2004
Bench Mark NA
Fund manager Mr. Sanjit Pishordi
SUNDRAM BNB PARIBAS MUTUAL FUND:
44 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
Sundram mutual fund identifying an investment opportunity long before as one is the heart of
our business belief. Being in the financial sector for a long time has given as a great
understanding of the Indian economy and that guides us while picking the companies for its
fund. Once unearth a potential opportunity, its financial experts spend countless time to
research the companies, to see what will deliver the best return to your money.
Its financial experts are fine tuned to large global picture and all its complexities as well as
intricacies of Indian market. We track global economy and market behaviour to better
understand the domestic market. We are constantly on the trail of promising opportunities
and once identified, a new theme is thoroughly researched and tested on various platform
before being offered to the investing public.
The fund schemes that have taken for analysis from sundram BNB PARIBAS mutual fund
are:
SUNDRAM BNB PARIBAS GROWTH FUND:
It seek to achieve capital appreciation by investing in a well diversified basket of equities and
equities related instruments. Income generation would be the secondary consideration.
Fund overview:
Fund type open ended
Investment plan Growth
Assets sizes -
Launch date -
Bench mark -
Fund Manager -
TATA MUTUAL FUND:
Tata mutual fund has earned the trust of lakhs of investors with consistent performance
and world class services.
45 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
It manage round Rs20, 85400 crores (average AUM for the quarter of October- December
2010) worth of assets across its varied offering. Tata mutual fund offers an investment option
for everyone, whether you are a businessman or salaried capital builder.
The Tata assets Management philosophy is centred on seeking consistent, long term result.
Tata Assets management aims at overall excellence, within the Frame work of transparent and
rigorous risk control.
Tata mutual fund offers investors a board range of managed investment products in various
assets classes and risk parameters, with operational flexibility to suit their varied investment
needs. It offer a wide range of service to assets investors have a fulfilling and rewarding
financial planning experience with us. It have designed our services keeping in mind the need
of our investors, giving them a smooth and hassle free financial planning process.
The schemes that have taken for analysis from Tata mutual fund are:
TATA DIVIDENT YIELD FUND: To provide income distribution and / medium to long
term capital gains by investing predominantly in high dividend yield stocks.
Fund overview:
Fund type open ended
Investment plan Growth
Assets sizes Rs 177crores
Launch date Oct 27 2004
Bench mark BSE sensitive index
Fund manager Mr. Mahindra Jajoo/ Sachin relekar
46 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
HDFC MUTUAL FUND:
HDFC assets management companies’ ltd (AMC) was incorporated under
companies Act, 1956 on December 10, 1999 and was approved to act as an assets
management company for the HDFC mutual fund by SEBI vide its letter at July 3, 2000.
In terms of the investment management Agreement, the trustee has appointed the HDFC
assets management companies limited to manage the mutual fund. The paid up capital of
AMC is Rs 25161crorer .the AMC is managing28 0pen –ended schemes of mutual fund some
are Growth fund, HDFC EQUITY fund,
HDFC TOP200:
Its objective is to generate long term capital appreciation by investing in a portfolio of
equities and equities linked instruments drawn from the BSE200 index.
Fund overview
Fund type open ended
Investment plan Growth
Launch date Oct 27 2004
Bench mark BSE 200 index
Fund manager Mr, parshant Jain
47 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
CHAPTER-4
DATA ANALYSIS:
1) CAGR
Year/ schemes Tata
Dividend
yield
Kotak
Equit
y FOF
Reliance
Diversified
Power
Sundra
m
Balance
Fund
HDFC
TOP
200
Last 1 year 103.78 86.03 96 71.52 102.25
Last 3 year 20.3 13.08 32.07 12.61 20.7
Last 5 tear 19.14 21.11 40.16 16.47 29.14
T a t a D i v i d e n d
Y i e l dK o t a k E q u i t y
F O FR e l i a n c e
D i v e r s i fi e d P o w e r
s u n d r a m B a l a n c e
F u n d
H D F C T o p 2 0 0
103.
78
86.0
3 96
71.5
2
102.
25
20.3
13.0
8
32.0
7
12.6
1
20.7
19.1
4
21.1
1
40.1
6
16.4
7 29.1
4
INTERPRETATIONS:
A)In last 1 year HDFC, TATA and Reliance gave maximum return of 102.2%, 103.7%
and 96% respect, followed by Kotak and sundram by 86.03% and 71.5% respectively.
48 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
sudhirkumar, 14/07/13,
sudhirkumar, 14/07/13,
sudhirkumar, 14/07/13,
B) In last 3&5 year, Reliance gave maximum return against its competitors.
Standard Deviation:
Year/ schemes Tata
Dividend
yield
Kotak
Equity
FOF
Reliance
Diversified
Power
Sundram
Balance
Fund
HDFC
TOP 200
Last 1 year 0.071141920
5
0.09292427 0.101266115 0.068953248 0.09332788
Last 3 years 0.099664831 0.09966483 0.111054683 0.082246954 0.0968572
Last 5 years 0.087110732 0.11201375 0.09839249 0.08549113 0.0841035
0.08
5491
13
0.09
2924
27
0.10
1266
115
0.06
8953
248
0.09
3327
8800
0000
01
0.09
9664
8310
0000
02
0.09
9664
8300
0000
02
0.11
1054
683
0.08
2246
954
0.09
6857
2
0.08
7110
732
0.11
2013
75
0.09
8392
4900
0000
01
0.08
2246
954
0.08
4103
5
STANDARD DEVIATIONlast 1 year last 3 year last 5 year
INTERPRETATION:
49 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
A) As for as the standard deviation in last 1 year is concerned, it is high in Reliance
which is .1 and low .o68.
B) In the last 3 years, again Reliance has high standard deviation about .0.011 followed
by kotak and Tata by 0.09 both.
C) But in last 5 year Kotak is highly volatile followed by Reliance and Tata.
D) BETA:
Year/ schemes Tata
Dividend
yield
Kotak
Equity
FOF
Reliance
Diversified
Power
Sundram
Balanced
Fund
HDFC
TOP 200
Last 1 year 0.685522556 0.915633 0.97078450
6
0.839178531 0.889744
Last 3 years 0.173402004 0.1508907 0.10017151
5
0.094652253 0.127550
Last 5 tear -0.01188823 0.1985720 0.97078450
6
0.120147547 0.1671198
T a t a D i v i d e n d y i e l d
K o t a k E q u i t y F O F
R e l i a n c e D i v e r s i fi e d
P o w e r
S u n d r a m B a l a n c e d
F u n d
H D F C T O P 2 0 0
0.6
85
52
255
64
0.9
15
63
3
0.9
70
78
450
6
0.8
39
17
853
1
0.8
89
74
4
0.1
73
40
200
4
0.1
50
89
07
0.1
00
17
151
5
0.8
39
17
853
1
0.1
27
55
-0.0
11
88
82
3
0.1
98
57
2
0.9
70
78
450
6
0.1
20
14
754
7
0.1
67
11
98
Betalast 1 years last 3 years last 5 years
50 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
INTERPRETATIONS:
A) In last one year reliance has high beta .97 as compare to others.
B) In last three years all the fund are less volatile with Nifty, but in last five years
Reliance has high beta. Of .97, so it is high volatile.
C) Tata dividend has low beta in all the year.
Sharp Ratio:
Year/ schemes Tata
Dividend
yield
Kotak
Equity
FOF
Reliance
Diversified
Power
Sundram
Balance
Fund
HDFC TOP
200
Last 1 year 2.82288 1.9218
4
1.941195962 1.78291329 2.18963153
Last 3 year .54053 .36523 .75575441 .34489246 0.551588391
Last 5 tear .46532 .68236 .991355024 .50778455 0.82590418
Ta t a Di v
i den d
k O t a k Eq u i t
y FOF
R e l i an c e D
i ve r s i fi
ed Po w
er
S u n d r am B
a l an c ed F
u n d
H D F C To p 2
0 0
2.82
288
1.92
184
1.94
1195
962
1.78
2913
29
2.18
9631
53
0.54
053
0.36
523
0.75
5754
4100
0000
1
0.34
4892
46
0.55
1588
391
0.46
532
0.68
236
0.99
1355
024
0.50
7784
55
0.82
5904
18
SHARP RATIOlast 1 years last 3 years last 5 years
INTERPRATION:
51 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
A) As for as last 1 year is concern, Tata has highest Sharpe ratio (2.8), followed by
HDFC (2.1), Reliance (1.94), Kotak (1.92) and sundram (1.7).
B) In last 3 years & 5 years, Reliance has highest Sharpe ratio against its competitors,
C) Tata has low Beta in all the years.
Sector fund:
1) CAGR (in %)
Years/scheme Reliance
Banking
Franklin
FMCG
UTI
Infrastructure
SBI
magnum
pharma
Reliance
Media &
Ent
Last 1 years 120.55 68.77 66.77 112.96 18.94
Last 3 years 30.21 17.52 10.89 3.61 2.07
Last 5 years 25.37 21.73 23.23 12.31 88.77
B A N K I N G F M C G I n f r a s t r u c t u r e P h a r m a M e d i a & e n t
120.
55
68.7
7
66.7
7
112.
96
18.9
430.2
1
17.5
2
10.8
9
3.61
2.07
25.3
7
21.7
3
23.2
3
12.3
1
88.7
7
last 1 year last 3 years last 5 years
52 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
INTERPRATATION:
A) In last years, banking and SBI gave highest return of 120% and 112.9% respective
against competitors.
B) In last three years Reliance banking gave highest return of 30.2 %. And in last 5 years
reliance media & ENT maximum return of 88.7%.
STANDARD DEVIATION:
Years/
scheme
Reliance
Banking
Franklin
FMCG
UTI
Infrastructu
re
SBI
magnum
pharma
Reliance
Media &
Ent
Last 1 years 0.1289433
75
0.05415499
4
0.094154994 0.0956267
97
0.1079924
07
Last 3 years 0.1158294
28
0.01158294
28
0.104597968 0.1045979
68
0.1187578
26
Last 5 years 0.1024895
84
0.06020592
2
0.09752141 0.0947086
4
0.1045544
54
53 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
B a n k i n g F M C G I n f r a c s t r u c t u r e p h a r m a M e d i a & E n t
0.12
8943
375
0.05
4154
9940
0000
01
0.09
4154
9940
0000
01
0.09
5626
7970
0000
01
0.10
7992
407
0.11
5829
428
0.01
1582
9428
0.10
4597
968
0.10
4597
968
0.11
8757
826
0.10
2489
584
0.06
0205
922 0.
0975
2141
0.09
4708
6400
0000
01
0.10
4554
454
STANDARD DEVIATIONlast 1 year last3 years last 5 years
INTERPRATATION:
A) In all the three years is concern Reliance Banking has highest standard Deviation, so it is
highly volatile as compare to its competitors.
B) Franklin FMCG is less volatile as compare to its competitors, so it is less risky to invest in this
fund.
Beta:
Years/
scheme
Reliance
Banking
Franklin
FMCG
UTI
Infrastructu
re
SBI
magnum
pharma
Reliance
Media &
Ent
Last 1 years 1.23072293
1
0.16291949
6
0.914220081 0.85286803 1.03158908
3
Last 3 years 0.21388727
7
0.05444464
5
0.096699523 0.13046722
8
0.23178450
3
Last 5 years 0.24802596
1
0.09334030
7
0.014594994
1
0.16879446
2
0.26664004
54 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
B A N K I N G F M C G I n f r a s t u r a c t u r e p h a r m a M e d i a & E n t
1.23
0722
931
0.16
2919
496
0.91
4220
081
0.85
2868
0300
0000
1
1.03
1589
083
0.21
3887
277
0.05
4444
645
0.09
6699
5230
0000
01
0.13
0467
228
0.23
1784
503
0.24
8025
961
0.09
3340
307
0.01
4594
9941
0.16
8794
462
0.26
6640
04
last 1 years last 3 years last 5 years
INTERPRATATION:
A) In last 1 years, Reliance Banking has high Beta of 1.2, so it is highly volatile as compare to its
competitors.
B) Overall, Franklin FMCG is less volatile as compare to its competitors, so it’s less risky to
invest in this fund.
Sharpe ratio:
Years/
scheme
Reliance
Banking
Franklin
FMCG
UTI
Infrastructur
e
SBI
magnum
pharma
Reliance
Media &
Ent
Last 1 years 1.86721063
6
2.6086068
3
1.550735632 1.91977976
6
1.73819063
7
Last 3 years 0.70161671
3
0.5940665
9
0.296815592 0.12578490
2
-
0.04470273
9
Last 5 years 0.64209473 0.7668029 0.611539329 0.33900012 0.40984207
55 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
8 2
B n a k i n g F M C G I n f r a s t u c t u r e P h a r m a M e d i a & e n t
1.8
67
21
06
36 2.6
08
60
68
3
1.5
50
73
56
32
1.9
19
77
97
66
1.7
38
19
06
37
0.7
01
61
67
13
0.5
94
06
65
89
99
99
99
0.2
96
81
55
92
0.1
25
78
49
02
-0.0
44
70
27
39
00
00
00
1
0.6
42
09
47
3
0.7
66
80
29
8
0.6
11
53
93
29
0.3
39
00
01
22
0.4
09
84
20
7
last 1 years last 3 years last 5 years
INTERPRATATION:
A) In last 1 years Franklin FMCG has highest Sharpe ratio of 2.6 as compare to its competition, so it
is good indicator for it.
B) In last 3 years Reliance Banking & Franklin FMCG has high Sharpe ratio of 0.7 and 0.5
respectively and reliance Media & Ent has lowest of -0.4.
C) In last 5 years Franklin has highest Sharpe ratio of 0.7 and SBI has lowest of 0.3.
Large cap fund:
Years/scheme Reliance
Vision
UTI
Equity
JM large
Cap
Birla Sun
life adv
fund
SBI
magnum
equity
Last 1 years 88.44 82.65 48.28 14.48 94.09
Last 3 years 14.1 16.34 0.8 8.24 37.61
Last 5 years 23.39 18.02 7.94 18.16 21.11
56 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
R e l i a n c e V i s i o n U T I e q u i t y J M l a r g e c a p B i r l a s u n l i f e f u n d
S B I m a g n u m E q u i t y
88.4
4
82.6
5
48.2
8
14.4
8
94.0
9
14.1
16.3
4
0.8 8.
24
37.6
1
23.3
9
18.0
2
7.94
18.1
6
21.1
1
CAGRlast 1 years last 3 years last 5 years
INTERPRATATION:
A) In last 1 years CAGR of SBI, Reliance Vision & UTI has high by 94%, 88.4%, and
82.6% respectively, as compare to its competitors.
B) In last 3 & 5 years SBI gave highest returns of about 37.6% & 21.1 % respectively.
C) Overall, Birla sun life adv fund gave least return.
Standard Deviation:
Years/
scheme
Reliance
Vision
UTI
Equity
JM large
Cap
Birla Sun
life adv
fund
SBI
magnum
equity
Last 1 years 0.0999137
6
0.074428
8
0.078338
3
0.11597324
2
0.097667
168
Last 3 years 0.1001844 0.083351 0.088863 0.11269396 0.105668
57 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
8 2 8 883
Last 5 years 0.0886405
9
0.078008
3
0.081352
2
0.09687164
2
0.095151
301
R e l i a n c e v i s i o n U T I E q u i t y J M L a r g e C a p B i r l a s u n l i f e a d v f u n d
S B I m a g n u m
0.09
9913
76
0.07
4428
8
0.07
8338
3
0.11
5973
242
0.09
7667
1680
0000
02
0.10
0184
48
0.08
3351
2
0.08
8863
8000
0000
01
0.11
2693
96
0.10
5668
883
0.08
8640
5900
0000
01
0.07
8008
3
0.08
1352
2
0.09
6871
642
0.09
5151
3010
0000
01
STANDARD DEVIATIONlast 1 year last 3 years last5 years
INTERPRATATIONS:
A) In last 1, 3&5 years, Birla sun life adv, fund has high standard Deviation, so it is
highly volatile as compare to its competitors.
B) Overall, UTI Equity is least volatile fund among its competitors, so it is better to
invest in such a less risky fund.
Beta:
58 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
Years/
scheme
Reliance
Vision
UTI
Equity
JM large
Cap
Birla Sun
life adv
fund
SBI
magnum
equity
Last 1 years 0.17248455 0.7078600 0.757529
2
1.128608674 0.93092074
Last 3 years 0.13229572 0.1190345 0.070357
7
0.165711517 0.13980907
Last 5 years 0.17248455 0.1607937 0.104998
5
0.206156923 0.182037128
R e l i a n c e
v i s i o nU T I E q u i t y J M l a r g e C A P B i r l a s u n l i f e
a d v F u n dS B I m a g n u m
e q u i t y
0.17
2484
55
0.70
786
0.75
7529
2000
0000
1
1.12
8608
674
0.93
0920
74
0.13
2295
72
0.11
9034
5
0.07
0357
7
0.16
5711
517
0.13
9809
07
0.17
2484
55
0.16
0793
7
0.10
4998
5
0.20
6156
923
0.18
2037
128
BETASeries 1 Series 2 Series 3
INTERPRATATION:
A) In last 1 year Birla sun life has a high beta of 1.1 as compare to its competitors, which
shows high volatility.
B) In last 1 year, Reliance vision has low Beta(0.17)
C) JM large CAP in last 3&5 year also has low Beta about 0.7&0.1respectively, so its is
less risky and safer to invest.
SHARPE RATIO:
Years/
scheme
Reliance
Vision
UTI
Equity
JM large
Cap
Birla Sun
life adv
fund
SBI
magnum
equity
Last 1 years 2.19170308 0.0140956
0
0.384419
6
1.74102981
3
1.80743058
59 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
Last 3 years 0.37702979
2
0.4621830
2
-
0.015875
8
0.23701981
3
0.20060521
5
Last 5 years 0.64603402
7
0.5301262 0.209397
7
0.48583637
8
0.53402252
R e l i a n c e V i s i o n U T I E q u i t y J M l a r g e C a p B i r l a S u n l i f e a d v f u n d
S B I m a g n u m e q u i t y
2.19
1703
08
0.01
4095
6
0.38
4419
6
1.74
1029
813
1.80
7430
58
0.37
7029
792
0.46
2183
02
-0.0
1587
58
0.23
7019
813
0.20
0605
215
0.64
6034
0270
0000
1
0.53
0126
1999
9999
9
0.20
9397
7
0.48
5836
378
0.53
4022
52
SHARPE RATIOlast 1 year last 3 years last 5 years
INTERPRATATION:
A) In last 1 year Reliance vision, SBI Equity & Birla sun life has high Sharpe Ratio about
2.1, 1.8, & 1.7 respectively, which shows good indicators. UTI has low which is .01.
B) In last 3&5 years, JM large CAP has a less Sharpe ratio about -.01 & .2 respectively,
which shows its poor performance.
FINDING & SUGGESTION:
PERFORMANCE SHEET OF DIVERSIFIED FUNDS:
60 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
Scheme CAGR
(1Yr)
CAGR
(3yrs)
CAGR
(5Yrs)
Rank
(1yr)
Rank
(3yrs)
Rank
(5yrs)
Tata dev 100 20.3 19.14 2 3 4
Kotak equity 86.03 13.08 21.11 4 4 3
Reliance
diversified
100 32.07 40.16 3 1 1
Sundram
balance
71.52 12.61 16.47 5 5 5
HDFC
TOP200
102.25 20.7 29.14 1 2 2
Diversified funds:
a) The performance of Tata Dividends & HDFC top 200 are better than their
competitors because there Sharpe ratio & CAGR are relatively high against
their competitors, there Beta & standard Deviation both are low.
b) The performance of Reliance Diversified & sundram are poor because of their
low Sharpe ratio & CAGR. Also they are more risky as compare to their
competitors because of their high Beta.
c) I would suggest giving first priority to HDFC TOP200 and second to Tata
Dividend.
PERFORMANCE SHEET (SECTOR FUNDS):
61 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
Scheme CAGR
(1Yr)
CAGR
(3yrs)
CAGR(
5Yrs)
Rank(1
yr.)
Rank(3
yrs)
Rank(
5yrs)
Reliance Banking 120.55 25.37 25.37 1 1 2
Franklin FMCG 68.68 17.52 21.73 3 4 4
UTI Infrastructure. 66.77 10.89 23.23 2 3 3
SBI Pharma 112.96 3.61 12.31 4 5 5
Reliance Media &
Ent
18.94 20.9 88.77 5 2 1
SECTOR FUND:
a) The performance of Reliance banking on the Basis of CAGR is
outperforming as compare to its competitors. Its Sharpe ratio is also good
after Franklin FMCG.
b) Those who wants take high returns as well as risk Reliance banking is good
for them because its Beta is also high among its competitors.
c) Those who wants keep them safe and able to take less risk, for them
Franklin is better option..
62 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
PERFORMACE SHEET (LARGE CAP FUND):
LARGE CAP FUND:
a) SBI & Reliance vision both have good CAGR and Sharpe ratio, but Reliance have very less Beta as compare to SBI, so Reliance should be the priority for investment.
b) Large cap & Birla sun life adv both is poor performance as far as CAGR and Sharpe ratio is concerned, so try to avoid them
CONCLUSION
Mutual fund investment is better than other arising fund Reliance and SBI fund have good
return under the large cap companies and you can also invest in HDFC TOP 200 and we have
also opportunities in Reliance banking (sector fund), Tata Dividend yield . But the return of
company and risk is not certain it vary time to time, in simple word we can say that other
factor have also impact.
63 LOVELY PROFESSIONAL UNIVERSITY,JALANDHAR
Scheme CAGR (1Yr)
CAGR(3yrs)
CAGR(5Yrs)
Rank(1yr.)
Rank(3yrs)
Rank(5yrs)
Reliance Vision 88.44 14.1 23.39 2 3 1
UTI Equity 82.65 16.34 18.02 3 2 4
JM large CAP 48.58 o.8 7.94 4 5 5
Birla sun life 14.48 8.24 18.16 5 4 3
SBI equity 94.19 37.61 21.11 1 1 2
The expectations of the customers are regularly increasing because of the increasing competition
and emergence of global market. In such conditions it becomes very necessary for a company to
fulfil all the expectations of the customers and give them a delightful experience.
These financial instruments are risky and it is very essential to make the customer feel that you
are taking care of his money. This can be done only in mutual fund scheme compare other
financial scheme because mutual fund have professional management.
REFERNCE
BOOKS:
1) Donald E fisher, security analysis & portfolio management.
2) Business research methodology.( Naval Bajpayee)