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1 A PROJECT REPORT ON “COMPARATIVE ANALYSIS OF MUTUAL FUND ON THE BASIS OF ALPHA, BETA, AND STANDARD DEVIATION” FOR INDIA INFOLINE, PUNE BY NIKITA BHARAT CHINCHANE MBA Semester III Project Guide Prof. VAISHAMPAYAN In Partial Fulfillment of the Requirements of the Two-Year Full-Time PGPM Programme of the SMVIM (St. Mira Vishwakarma Institute Of Management) Pune AY: 2007-08 www.final-yearproject.com | www.troubleshoot4free.com/fyp/
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Comparative Analysis of Mutual Fund With India Infoline by Nikita Chinchane

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Page 1: Comparative Analysis of Mutual Fund With India Infoline by Nikita Chinchane

1

A PROJECT REPORT

ON

“COMPARATIVE ANALYSIS OF MUTUAL FUND ON THE

BASIS OF ALPHA, BETA, AND STANDARD DEVIATION”

FOR

INDIA INFOLINE, PUNE

BY

NIKITA BHARAT CHINCHANE

MBA Semester III

Project Guide Prof. VAISHAMPAYAN

In Partial Fulfillment of the Requirements of the Two-Year Full-Time PGPM Programme

of the SMVIM

(St. Mira Vishwakarma Institute Of Management) Pune

AY: 2007-08

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ACKNOWLEDGEMENT

I take this opportunity to express my deepest gratitude to all those people, without

those spontaneous support, guidance, encouragement and understanding, this project

would never had reached completion.

It was my privilege to work with India Infoline Ltd. I am indebted to Kamlesh

Tiwari (Branch Manager), Chetan Singh Rajpurohit (Sales Manager) who acted as

philosopher and guide through all the stages of completion of the project.

Mere words of gratitude will never suffice to their valuable guidance, patience

and faith shown in my work.

I would also like to avail this opportunity to express my sincere thanks and

profound gratitude to my project guide Prof (Vaishamparan), whose valuable knowledge

and guidance have me complete this project successfully.

I acknowledge the timely help extended by all my colleagues and all the

unmentioned names from the concerned field.

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INDEX

Sr.No. TOPIC Page no.

1 EXECUTIVE SUMMARY 4

2 RESEARCH OBJECTIVE 4

3 SCOPE OF PROJECT 5

4 RESEARCH METHODOLGY 5

5 FINDINGS AND ANALYSIS 6

6 LIMITATIONS 6

7 ABOUT INDIA INFOLINE 7

8 INTRODUCTION OF MUTUAL FUND 12

9 COMPARISON OF MUTUAL FUND 37

10 CONCLUSION

11 BIBLIOGRAPHY

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Executive Summary

The project has been carried out at “India Infoline Ltd” with the title

“Comparative Analysis of Mutual Fund on the basis of Alpha, Beta and Standard

Deviation”.

The main function of having analysis of Mutual fund is to pinpoint the strong

points and weaknesses of mutual fund schemes.

For this I have taken the following parameters:

Analyzing Mutual Fund using:-

1. Alpha: - I came to know how particulars Mutual Fund schemes performed related

to what it was expected to do.

2. Beta:- By comparing Mutual Fund on the basis of beta we come to know how

volatile a particular Mutual Fund as related to stock market is.

3. Standard Deviation:- The standard deviation of a fund measures this risk by

measuring the degree to which the fund fluctuates in relation to its mean return.

4. Schemes selected for project:-

• Equity Diversified

• Balanced Fund

• Debt fund

• Liquid fund

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RESEARCH OBJECTIVE :

To evaluate investment performance of selected mutual funds in terms of risk and

return. Also to analyze the performance of mutual fund schemes on the basis of various

parameters. Primarily to understand the basic concepts of Mutual fund and its benefits as

an investment avenue.

Secondly, to compare and evaluate the performance of different schemes of mutual

fund companies on the basis of risk, return and volatility

SCOPE OF PROJECT:

The Schemes were categorized and selected on evaluating their performance and

relative risk. The scope of the project is mainly concentrated on the different categories

of the mutual funds such as equity schemes, debt funds, balanced funds and liquid fund.

RESEARCH METHODOLGY :

Research Methodology is a very organized and systematic medium through which

a particular case or problem can be solved. It is analytical, descriptive and quantitative

research where the comparison between the different mutual fund schemes is made on the

basis of risk, volatility and return.

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FINDINGS AND ANALYSIS:

The collection of information is based on the secondary probe. The information

has been collected through various books, and internet.

An attempt has been made to evaluate the performance of the selected mutual

fund schemes. Performance of mutual fund schemes has been evaluated by using the

following performance measures

(a) Risk

(b) Standard Deviation.

(c) Beta

LIMITATIONS:

To get an insight in the process of risk and return and deployment of funds by

fund manager is difficult.

The project is unable to analyse each and every scheme of mutual funds to create

awarness about risk and return. The risk and return of mutual fund schemes can

change according to the market conditions

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ABOUT THE COMPANY

INDIA INFOLINE:

INDIA INFOLINE is a one-stop financial services shop, most respected

for quality of its advice, personalized service and cutting-edge technology.

VISION is “to be the most respected company in the financial services space.”

India Infoline Ltd:

India Infoline Ltd is listed on both the leading stock exchanges in India, viz. the

Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE). The India

Infoline group, comprising the holding company, India Infoline Ltd and its subsidiaries,

straddles the entire financial services space with offerings ranging from Equity research,

Equities and derivatives trading, Commodities trading, Portfolio Management Services,

Mutual Funds, Life Insurance, Fixed deposits, GoI bonds and other small savings

instruments to loan products and Investment banking. India Infoline also owns and

manages the websites, www.indiainfoline.com and www.5paisa.com .

India Info line Ltd, being a listed entity, is regulated by SEBI (Securities and

Exchange Board of India). It undertakes equities research which is acknowledged by

none other than Forbes as 'Best of the Web' and '…a must read for investors in Asia'.

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India Infoline's research is available not just over the internet but also on international

wire services like Bloomberg , Thomson First Call and Internet Securities where it is

amongst the most read Indian brokers.

Its various subsidiaries are in different lines of business and hence are governed

by different regulators.

Geographical presence

IIL has pan-India presence across 94 cities. It started off with major branches in

metros and now it is focusing on Tier II and III cities. In Q1-FY07 the company opened

56 branches, taking the total number of branches to 233 branches. Almost 50%of the

revenue comes from centers in Maharashtra and Delhi.

Followed by other regions.

Investment Highlights

Strong growth in Industry volumes and rising retail participation Average daily

volumes in the equity markets (cash and derivative combined) have increased by

72%from to Rs.167bn in FY 05 to Rs.288bn in FY 06.With the economy growing at 7-

8% a mounting per capita income and growing BPO culture, there is a new class of

young investors, which are moving towards the equity market.

IIL is majorly present in the retail segment. With the rising income levels, risk- taking

ability of people and the confidence in the India Inc, participation from the retail crowd is

increasing y-o-y. IIL is aggressively increasing its presence by opening branches in

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different cities. In FY QI-07, they roll out 56 new branches and acquired 25000 new

customers. And it expects them to have 350 and 430 branches by FY 08 respectively.

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The subsidiaries of India Info line Ltd are:

India Infoline Securities Pvt Ltd:

India Infoline Securities Pvt Ltd is a 100% subsidiary of India Infoline Ltd, which

is engaged in the businesses of Equities broking and Portfolio Management Services. It

holds memberships of both the leading stock exchanges of India viz. the Stock Exchange,

Mumbai (BSE) and the National Stock Exchange (NSE). It offers broking services in the

Cash and Derivatives segments of the NSE as well as the Cash segment of the BSE.

India Infoline Commodities Pvt Ltd:

India Infoline Commodities Pvt Ltd is a 100% subsidiary of India Infoline Ltd,

which is engaged in the business of commodities broking. They have memberships with

the MCX and NCDEX, two leading Indian commodities exchanges, and has recently

acquired membership of DGCX.

India Infoline Distribution Co Ltd (IILD):

India Infoline Distribution Co Ltd is a 100% subsidiary of India Infoline Ltd and

is engaged in the business of distribution of Mutual Funds, IPOs, Fixed Deposits and

other small savings products. It is one of the largest 'vendor-independent' distribution

houses and has a wide pan-India footprint of over 232 branches coupled with a huge

number of 'feet-on-street', which help source and service customers across the length and

breadth of India.

Mortgages & Loans:

IILD has also entered the business of distribution of mortgages and loan products

during the year 2005-2006.

India Infoline Insurance Services Ltd:

India Infoline Insurance Services Ltd is also a 100% subsidiary of India Infoline

Ltd and is a registered Corporate Agent with the Insurance Regulatory and Development

Authority (IRDA). It is the largest Corporate Agent for ICICI Prudential Life Insurance

Co Ltd, which is India's largest private Life Insurance Company.

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India Infoline Investment Services Ltd:

India Infoline Investment Service Ltd is also a 100% subsidiary of India Infoline

Ltd. It has an NBFC licence from the Reserve Bank of India (RBI) and offers margin-

funding facility to the broking customers.

Management of India infoline:

Mr. Nirmal Jain

Nirmal Jain is the founder and Chairman of India Info line Ltd. He holds an MBA

degree from IIM Ahmedabad, and is a Chartered Accountant and a Cost Accountant. He

has had an impeccable professional and academic track record. He then joined hands with

two local brokers to set up their equity research division Inquire, in 1994. His work set

new standards for equity research in India. In 1995, he founded his own independent

financial research company, now known as India Info line Ltd.

Mr. R Venkataraman

Venkataraman is the co-promoter and Executive Director of India Infoline Ltd.

He holds a B.Tech degree in Electronics and Electrical Communications Engineering

from IIT Kharagpur and an MBA degree from IIM Bangalore. He has held senior

managerial positions in various divisions of ICICI Limited, including ICICI Securities

Limited, their investment banking joint venture with J P Morgan of USA and with BZW

and Taib Capital Corporation Limited. He has also held the position of Assistant Vice

President with G E Capital Services India Limited in their private equity division.

The Board of Directors

Apart from Nirmal Jain and R Venkataraman, the Board of Directors of India

Infoline comprises:

Mr Sat Pal Khattar (Non Executive Director)

Mr Sanjiv Ahuja (Independent Director)

Mr Nilesh Vikamsey (Independent Director)

Mr Kranti Sinha (Independent Director)

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INTRODUCTION TO MUTUAL FUND

A Mutual Fund is a trust that pools the savings of a number of investors who

share a common financial goal. The money thus collected is invested by the fund

manager in different types of securities depending upon the objective of the scheme.

These could range from shares to debentures to money market instruments. The income

earned through these investments and the capital appreciation realized by the scheme are

shared by its unit holders in proportion to the number of units owned by them (pro rata).

Thus a Mutual Fund is the most suitable investment for the common man as it

offers an opportunity to invest in a diversified, professionally managed portfolio at a

relatively low cost. Anybody with an investible surplus of as little as a few thousand

rupees can invest in Mutual Funds.

Each Mutual Fund scheme has a defined investment objective and strategy

mutual fund is the ideal investment vehicle for today’s complex and modern financial

scenario. Markets for equity shares, bonds and other fixed income instruments, real

estate, derivatives and other assets have become mature and information driven. Price

changes in these assets are driven by global events occurring in faraway places.

A typical individual is unlikely to have the knowledge, skills, inclination and time to keep

track of events, understand their implications and act speedily. An individual also finds it

difficult to keep track of ownership of his assets, investments, brokerage dues and bank

transactions etc.

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Draft offer document is to be prepared at the time of launching the fund.

Typically, it pre specifies the investment objectives of the fund, the risk associated, the

costs involved in the process and the broad rules for entry into and exit from the fund and

other areas of operation. In India, as in most countries, these sponsors need approval from

a regulator, SEBI (Securities exchange Board of India) in our case. SEBI looks at track

records of the sponsor and its financial strength in granting approval to the fund for

commencing operations.

A sponsor then hires an asset management company to invest the funds according

to the investment objective. It also hires another entity to be the custodian of the assets of

the fund and perhaps a third one to handle registry work for the unit holders (subscribers)

of the fund.

In the Indian context, the sponsors promote the Asset Management Company

also, in which it holds a majority stake. In many cases a sponsor can hold a 100% stake in

the Asset Management Company (AMC). E.g. Birla Global Finance is the sponsor of the

Birla Sun Life Asset Management Company Ltd., which has floated different mutual

funds schemes and also acts as an asset manager for the funds collected under the

schemes.

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ORGANIZATION OF A MUTUAL FUND

There are many entities involved and the diagram below illustrates the

organizational set up of a mutual fund

Organization of a Mutual Fund

A Mutual Fund is set up in the form of trust, which has sponsor, trustees,

asset management company (AMC), and custodian. The trust is established by

sponsor or more than one sponsor who is like a promoter of company. The trustee

of mutual fund holds its property for the benefit of unit holders. Asset Management

Company (AMC) approved by SEBI manages the funds by making investments in

various types of securities. Custodian, who registered with SEBI, holds the

securities of the fund in its custody. The trustees are vested with the general power

of superintendence and direction over AMC. They monitor the performance and

compliance of SEBI regulations by mutual fund.

SEBI regulations required that at least two thirds of the directors of trustee

company or board of trustees must be independent i.e. they should not be

associated with sponsors. Also, 50% of the directors of the AMC must be

independent. All mutual funds are required to be registered with SEBI before they

launch their schemes.

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MAJOR MUTUAL FUND COMPANIES IN INDIA

ABN AMRO MUTUAL FUND

ABN AMRO Mutual Fund was setup on April 15, 2004 with ABN AMRO

Trustee(India) Pvt. Ltd. as the Trustee Company. The AMC, ABN AMRO Asset

Management (India) Ltd. was incorporated on November 4, 2003. Deutsche Bank A G is

the custodian of ABN AMRO Mutual Fund.

BIRLA SUN LIFE MUTUAL FUND

Birla Sun Life Mutual Fund is the joint venture of Aditya Birla Group and Sun

Life Financial. Sun Life Financial is a global organization evolved in 1871 and is being

represented in Canada, the US, the Philippines, Japan, Indonesia and Bermuda apart from

India. Birla Sun life Mutual Fund follows a conservative long-term approach to

investment. Recently it crossed a AUM of

Rs.10, 000 crores.

BANK OF BARODA MUTUAL FUND

Bank of Baroda Mutual Fund or BOB Mutual Fund was setup on October 30,

1992 under the sponsorship of Bank of Baroda. BOB Assets Management Company

Limited is the AUM of BOB Mutual Fund and was incorporated on November 5, 1992.

Deutsche Bank AG is the custodian.

HDFC MUTUAL FUND

HDFC Mutual Fund was setup on June 30, 2000 with two sponsors namely

Housing Development Finance Corporation Limited and Standard Life Investments

Limited.

ING VYSYA MUTUAL FUND

ING Yysya Mutual Fund was setup on February 11, 1999 with the same named Trustee

Company. It is a joint venture of Vysya and ING. The AMC, ING Investment

Management (India) Pvt. Ltd. was on corporaed on April 6, 1998.

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PRUDENTIAL ICICI MUTUAL FUND

The mutual fund of ICICI is a joint venture with Prudential Plc. Of America, one

of the largest life insurance companies in the US of A. Prudential ICICI Mutual Fund was

setup on 13 October, 1993 with two sponsors, Prudential Plc. and the AMC is Prudential

ICICI Asset Management Company Limited incorporated on 22 June, 1993.

SAHARA MUTUAL FUND

Sahara Mutual Fund was setup on July 18, 1996 with Sahara India financial

Corporation Ltd. as the sponsor. Sahara Assets Management Company Private Limited

incorporated on August 31, 1995 works as the AMC of Sahara Mutual Fund. The paid up

capital of the AMC stands at Rs.25.8 crore.

STATE BANK OF INDIA MUTUAL FUND

State Bank of India Mutual Fund is the first Bank sponsored Mutual Fund to

launch offshore fund, the India Magnum Fund with a corpus of Rs.225 crore

approximately. Today it is the largest Bank sponsored Mutual Fund in India. They

already launched 35 schemes out of which 15 have already yield handsome returns to

investors. State Bank of India Mutual Fund has more than Rs.5, 500 crores as AUM.

Now it has an investor base of over 8 lakhs spread over 18 schemes.

TATA MUTUAL FUND

TATA Mutual Fund is a Trust under the Indian Trust Act, 1882. the sponsors for

Tata Mutual Fund are Tata Sons Ltd., and Tata Investment Corporation Ltd. the

investment manger is Tata management Limited is one of the fastest in the country with

more than Rs.7,703 Crore(as on 2005) of AUM.

KOTAK MAHINDRA ASSTE MANAGEMENT COMPANY

Kotak Mahindra Asset Management Company is a subsidiary of KMBL. It is

presently having more than 1, 99,818 investors in its various schemes. KMAMC stared

its operations in December 1998. Kotak Mahindra Mutual Fund offers schemes catering

to investors with varying risk return profiles. It was the first company to launch to

dedicated gilt scheme investing only in government securities.

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UNIT TRUST OF INDIA MUTUAL FUND

UTI Asset Management Company Private Limited, established in Jan 24, 2003

manages the UTI Mutual Fund with the support of UTI Trustee Company Private

Limited. UTI Asset Management Company presently manages a corpus of over Rs.20,

000 crore. The sponsors of UTI Mutual Fund are Bank of Baroda, Punjab National Bank,

State Bank of India, and Life Insurance Corporation of India. The schemes of UTI

Mutual Fund are Liquid Funds, assets Management Funds, Index Funds and Balanced

Funds.

RELIANCE MUTUAL FUND

Reliance Mutual Fund was established as trust under Indian Trusts Act, 1882.The

sponsor of RMF is Reliance Capital Limited and Reliance Capital Trustee Co. Limited is

the Trustee. It was registered on June 30, 1995 as Reliance Mutual Fund which was

changed on March 11, 2004. Reliance Mutual Fund was formed for launching of various

schemes under which, units are issued to the public with a view to contribute to the

capital market and to provide investors the opportunities to make investments in

diversified securities.

STANDARD CHARTERED MUTUAL FUND

Standard Chartered Mutual Fund was setup on March 13, 2000 sponsored by

Standard Chartered Bank. The Trustee is Standard Chartered Trustee Company Pvt. Ltd.

Standard Chartered Asset Management Company Pvt. Ltd is the AMC which was

incorporated with SEBI on December 20, 1999.

FRANKLIN TEMPLETON MUTUAL FUND

The group, Franklin Templeton investment is a California based company with a

global AUM of US $409.2(as on 2005). It is one of the largest financial service group in

the world. Investors can buy or sell the Mutual Fund through their financial advisor or

through mail or through their website. They have open end Diversified Equity schemes,

Open end Sector Equity schemes, Open end Hybrid schemes, Open end tax saving

schemes, Open end income and liquid schemes, Closed end Income schemes and Open

end Fund of Funds schemes to offer.

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MORGAN STANLEY MUTUAL FUND

Morgan Stanley is a world wide financial services company and its leading in the

market in securities, investment management and credit services. Morgan Stanley

investment management was established in the year 1975. it provides customized asset

management services and products to governments, corporations, pension funds and non

profit organizations. Its services are also extending to high net worth individuals and

retail investors. In India it is known as Morgan Stanley investment management Private

Ltd. and its AMC is Morgan Stanley Mutual Fund. This is the first closed end diversified

equity scheme serving the needs of Indian retail investors focusing on the long term

capital appreciation.

ESCORT MUTUAL FUNDS

Escort Mutual Funds was set up on April 15th, 1996 with Escorts Finance Ltd. as its

sponsor. The Trustee Company is Escorts Investments Trust Ltd.. its AMC was

incorporated on Dec1st, 95 with the name Escorts Asset Management Ltd.

ALLAINCE CAPITAL MUTUAL FUND

Allaince Capital Mutual Fund was set up on December 30, 1994 with Alliance

Capital Management Corp. of Delaware (USA) as sponsor. The Trustee is ACAM Trust

Company Pvt. Ltd. and AMC, the Alliance Capital Asset Management India Pvt. Ltd.

with the corporate office in Mumbai.

BENCHMARK MUTUAL FUND

Benchmark Mutual Fund was setup on June 12, 2001 with Niche Financial

Services Pvt. Ltd. as the sponsor and Benchmark Trustee Company Pvt. Ltd. as the

trustee Company. incorporated on October 16, 2000 and headquartered in Mumbai,

Benchmark Assets Management Company Pvt. Ltd. is the AMC.

CAN BANK MUTUAL FUND

Can Bank Mutual Fund was setup on December 19, 1987 with Canara Bank

acting as the sponsor. Canara bank investment Management Service Ltd. incorporated on

March 2, 1993 is the AMC. The Corporate Office of the AMC is in Mumbai.

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CHOLA MUTUAL FUND

Chola Mutual Fund under the sponsorship of Cholamandalam Investment &

Finance Company Ltd. was setup on January 3, 1997. Cholamandalam Trustee Co. Ltd. is

the Trustee Company and AMC is Cholamandalam AMC Limited.

LIC MUTUAL FUND

Life Insurance Corporation on India setup LIC Mutual Fund on 19th June 1989. It

contributed Rs.2 crore towards the corpus of the Fund. LIC Mutual Fund was constituted

as a trust in accordance with the provisions of the Indian trust Act, 1882. The Company

started its bsiness on 29th April 1994. The Trustees of LIC Mutual Fund have appointed

Jeevan Bima Sahayog Asset Management Company Ltd. as the Investment Managers for

mutual fund.

GIC MUTUAL FUND

GIC Mutual Fund, sponsored by General Insurance Corporation of India, a

government of India undertaking and the four Public Sector General Insurance

Companies, viz. National Insurance Co. Ltd, the New India Assurance Co. Ltd. the

Oriental Insurance Co. Ltd and United India Insurance Co. Ltd and is constituted as a

Trust in Accordance with the provisions of the Indian Trusts Act, 1882.

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Types of Mutual Funds

Mutual fund schemes may be classified on the basis of its structure and its

investment objective.

By Structure:

Open-ended Funds

An open-end fund is one that is available for subscription all through the year.

These do not have a fixed maturity. Investors can conveniently buy and sell units at Net

Asset Value ("NAV") related prices. The key feature of open-end schemes is liquidity.

Closed-ended Funds

A closed-end fund has a stipulated maturity period which generally ranging from

3 to 15 years. The fund is open for subscription only during a specified period. Investors

can invest in the scheme at the time of the initial public issue and thereafter they can buy

or sell the units of the scheme on the stock exchanges where they are listed. In order to

provide an exit route to the investors, some close-ended funds give an option of selling

back the units to the Mutual Fund through periodic repurchase at NAV related prices.

SEBI Regulations stipulate that at least one of the two exit routes is provided to the

investor.

Interval Funds

Interval funds combine the features of open-ended and close-ended schemes.

They are open for sale or redemption during pre-determined intervals at NAV related

prices.

By Investment Objective:

Growth Funds:

The aim of growth funds is to provide capital appreciation over the medium to

long- term. Such schemes normally invest a majority of their corpus in equities. It has

been proven that returns from stocks, have outperformed most other kind of investments

held over the long term. Growth schemes are ideal for investors having a long-term

outlook seeking growth over a period of time.

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Income Funds:

The aim of income funds is to provide regular and steady income to investors.

Such schemes generally invest in fixed income securities such as bonds, corporate

debentures and Government securities. Income Funds are ideal for capital stability and

regular income.

Balanced Funds:

The aim of balanced funds is to provide both growth and regular income. Such

schemes periodically distribute a part of their earning and invest both in equities and

fixed income securities in the proportion indicated in their offer documents. In a rising

stock market, the NAV of these schemes may not normally keep pace, or fall equally

when the market falls. These are ideal for investors looking for a combination of income

and moderate growth.

Money Market Funds

The aim of money market funds is to provide easy liquidity, preservation of

capital and moderate income. These schemes generally invest in safer short-term

instruments such as treasury bills, certificates of deposit, commercial paper and inter-

bank call money. Returns on these schemes may fluctuate depending upon the interest

rates prevailing in the market. These are ideal for Corporate and individual investors as a

means to park their surplus funds for short periods.

Load Funds:

A Load Fund is one that charges a commission for entry or exit. That is, each time

you buy or sell units in the fund, a commission will be payable. Typically entry and exit

loads range from 1% to 2%. It could be worth paying the load, if the fund has a good

performance history.

No-Load Funds:

A No-Load Fund is one that does not charge a commission for entry or exit. That

is, no commission is payable on purchase or sale of units in the fund. The advantage of a

no load fund is that the entire corpus is put to work.

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Other Schemes:

Tax Saving Schemes:

These schemes offer tax rebates to the investors under specific provisions of the

Indian Income Tax laws as the Government offers tax incentives for investment in

specified avenues. Investments made in Equity Linked Savings Schemes (ELSS) and

Pension Schemes are allowed as deduction u/s 88 of the Income Tax Act, 1961. The Act

also provides opportunities to investors to save capital gains u/s 54EA and 54EB by

investing in Mutual Funds, provided the capital asset has been sold prior to April 1, 2000

and the amount is invested before September 30, 2000.

Special Schemes:

Industry Specific Schemes:

Industry Specific Schemes invest only in the industries specified in the offer

document. The investment of these funds is limited to specific industries like InfoTech,

FMCG, Pharmaceuticals etc.

Index Schemes:

Index Funds attempt to replicate the performance of a particular index such as the

BSE Sensex or the NSE 50.

Sectoral Schemes:

Sectoral Funds are those, which invest exclusively in a specified industry or a

group of industries or various segments such as 'A' Group shares or initial public

offerings.

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BENEFITS OF MUTUAL FUND INVESTMENT

Professional Management:

Mutual Funds provide the services of experienced and skilled professionals,

backed by a dedicated investment research team that analyses the performance and

prospects of companies and selects suitable investments to achieve the objectives of the

scheme.

Diversification:

Mutual Funds invest in a number of companies across a broad cross-section of

industries and sectors. This diversification reduces the risk because seldom do all stocks

decline at the same time and in the same proportion. You achieve this diversification

through a Mutual Fund with far less money than you can do on your own.

Convenient Administration:

Investing in a Mutual Fund reduces paperwork and helps you avoid many

problems such as bad deliveries, delayed payments and follow up with brokers and

companies. Mutual Funds save your time and make investing easy and convenient.

Return Potential:

Over a medium to long-term, Mutual Funds have the potential to provide a higher

return as they invest in a diversified basket of selected securities.

Low Costs:

Mutual Funds are a relatively less expensive way to invest compared to directly

investing in the capital markets because the benefits of scale in brokerage, custodial and

other fees translate into lower costs for investors.

Liquidity:

In open-end schemes, the investor gets the money back promptly at net asset

value related prices from the Mutual Fund. In closed-end schemes, the units can be sold

on a stock exchange at the prevailing market price or the investor can avail of the facility

of direct repurchase at NAV related prices by the Mutual Fund.

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Transparency:

You get regular information on the value of your investment in addition to

disclosure on the specific investments made by your scheme, the proportion invested in

each class of assets and the fund manager's investment strategy and outlook.

Flexibility:

Through features such as regular investment plans, regular withdrawal plans and

dividend reinvestment plans, you can systematically invest or withdraw funds according

to your needs and convenience.

Affordability

Investors individually may lack sufficient funds to invest in high-grade stocks. A

mutual fund because of its large corpus allows even a small investor to take the benefit of

its investment strategy.

Choice of Schemes

Mutual Funds offer a family of schemes to suit your varying needs over a

lifetime.

Well Regulated

All Mutual Funds are registered with SEBI and they function within the

provisions of strict regulations designed to protect the interests of investors. The

operations of Mutual Funds are regularly monitored by SEBI.

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LIMITATION OF MUTUAL FUND INVESTMENT

1. No Control Over Cost:

An Investor in mutual fund has no control over the overall costs of investing. He

pays an investment management fee (which is a percentage of his investments) as long as

he remains invested in fund, whether the fund value is rising or declining. He also has to

pay fund distribution costs, which he would not incur in direct investing.

However this only means that there is a cost to obtain the benefits of mutual fund

services. This cost is often less than the cost of direct investing.

2. No Tailor-Made Portfolios:

Investing through mutual funds means delegation of the decision of portfolio

composition to the fund managers. The very high net worth individuals or large corporate

investors may find this to be a constraint in achieving their objectives.

However, most mutual funds help investors overcome this constraint by offering

large no. of schemes within the same fund.

3. Managing A Portfolio Of Funds:

Availability of large no. of funds can actually mean too much choice for the

investors. He may again need advice on how to select a fund to achieve his objectives.

AMFI has taken initiative in this regard by starting a training and certification

program for prospective Mutual Fund Advisors. SEBI has made this certification

compulsory for every mutual fund advisor interested in selling mutual fund.

a. Taxes:

During a typical year, most actively managed mutual funds sell anywhere from 20

to 70 percent of the securities in their portfolios. If your fund makes a profit on its sales,

you will pay taxes on the income you receive, even if you reinvest the money you made.

b. Cost of Churn:

The portfolio of fund does not remain constant. The extent to which the portfolio

changes is a function of the style of the individual fund manager i.e. whether he is a buy

and hold type of manager or one who aggressively churns the fund. It is also dependent

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on the volatility of the fund size i.e. whether the fund constantly receives fresh

subscriptions and redemptions. Such portfolio changes have associated costs of

brokerage, custody fees etc. that lowers the portfolio return commensurately.

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Net Asset Value (NAV)

The net asset value of the fund is the cumulative market value of the assets fund

net of its liabilities. In other words, if the fund is dissolved or liquidated, by selling off all

the assets in the fund, this is the amount that the shareholders would collectively own.

This gives rise to the concept of net asset value per unit, which is the value, represented

by the ownership of one unit in the fund. It is calculated simply by dividing the net asset

value of the fund by the number of units. However, most people refer loosely to the NAV

per unit as NAV, ignoring the "per unit". We also abide by the same convention.

Calculation of NAV

The most important part of the calculation is the valuation of the assets owned by

the fund. Once it is calculated, the NAV is simply the net value of assets divided by the

number of units outstanding. The detailed methodology for the calculation of the asset

value is given below.

Asset value is equal to

Sum of market value of shares/debentures

+ Liquid assets/cash held, if any

+ Dividends/interest accrued

Amount due on unpaid assets

Expenses accrued but not paid

HISTORY OF MUTUAL FUND:

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Mutual Funds in India (1964-2000)

The end of millennium marks 36 years of existence of mutual funds in this

country. The ride through these 36 years is not been smooth. Investor opinion is still

divided. While some are for mutual funds others are against it.

UTI commenced its operations from July 1964 .The impetus for establishing a

formal institution came from the desire to increase the propensity of the middle and lower

groups to save and to invest. UTI came into existence during a period marked by great

political and economic uncertainty in India. With war on the borders and economic

turmoil that depressed the financial market, entrepreneurs were hesitant to enter capital

market.

UTI commenced its operations from July 1964 "with a view to encouraging

savings and investment and participation in the income, profits and gains accruing to the

Corporation from the acquisition, holding, management and disposal of securities."

Different provisions of the UTI Act laid down the structure of management, scope of

business, powers and functions of the Trust as well as accounting, disclosures and

regulatory requirements for the Trust.

The opening up of the asset management business to private sector in 1993 saw

international players like Morgan Stanley, Jardine Fleming, JP Morgan, George Soros

and Capital International along with the host of domestic players join the party. But for

the equity funds, the period of 1994-96 was one of the worst in the history of Indian

Mutual Funds.

1999-2000 Year of the funds

Mutual funds have been around for a long period of time to be precise for 36 yrs

but the year 1999 saw immense future potential and developments in this sector. This

year signaled the year of resurgence of mutual funds and the regaining of investor

confidence in these MF’s. This time around all the participants are involved in the revival

of the funds the AMC’s, the unit holders, the other related parties. However the sole

factor that gave lifr to the revival of the funds was the Union Budget. The budget brought

about a large number of changes in one stroke. An insight of the Union Budget on mutual

funds taxation benefits is provided later.

It provided centrestage to the mutual funds, made them more attractive and

provides acceptability among the investors. The Union Budget exempted mutual fund

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dividend given out by equity-oriented schemes from tax, both at the hands of the investor

as well as the mutual fund. No longer were the mutual funds interested in selling the

concept of mutual funds they wanted to talk business which would mean to increase asset

base, and to get asset base and investor base they had to be fully armed with a whole lot

of schemes for every investor .So new schemes for new IPO’s were inevitable. The quest

to attract investors extended beyond just new schemes. The funds started to regulate

themselves and were all out on winning the trust and confidence of the investors under

the aegis of the Association of Mutual Funds of India (AMFI)

One cam say that the industry is moving from infancy to adolescence, the industry

is maturing and the investors and funds are frankly and openly discussing difficulties

opportunities and compulsions.

Future Scenario

The asset base will continue to grow at an annual rate of about 30 to 35 % over

the next few years as investor’s shift their assets from banks and other traditional

avenues. Some of the older public and private sector players will either close shop or be

taken over.

Out of ten public sector players five will sell out, close down or merge with

stronger players in three to four years. In the private sector this trend has already started

with two mergers and one takeover. Here too some of them will down their shutters in the

near future to come.

But this does not mean there is no room for other players. The market will witness

a flurry of new players entering the arena. There will be a large number of offers from

various asset management companies in the time to come. Some big names like Fidelity,

Principal, Old Mutual etc. are looking at Indian market seriously. One important reason

for it is that most major players already have presence here and hence these big names

would hardly like to get left behind.

The mutual fund industry is awaiting the introduction of derivatives in India as

this would enable it to hedge its risk and this in turn would be reflected in it’s Net Asset

Value (NAV).

SEBI is working out the norms for enabling the existing mutual fund schemes to

trade in derivatives. Importantly, many market players have called on the Regulator to

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initiate the process immediately, so that the mutual funds can implement the changes that

are required to trade in Derivatives.

GROWTH IN ASSETS UNDER MANAGEMENT

RECENT TRENDS IN MUTUAL FUND INDUSTRY

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The most important trend in the mutual fund industry is the aggressive expansion

of the foreign owned mutual fund companies and the decline of the companies floated by

nationalized banks and smaller private sector players. Many nationalized banks got into

the mutual fund business in the early nineties and got off to a good start due to the stock

market boom prevailing then. These banks did not really understand the mutual fund

business and they just viewed it as another kind of banking activity.

Few hired specialized staff and generally chose to transfer staff from the parent

organizations. The performance of most of the schemes floated by these funds was not

good. Some schemes had offered guaranteed returns and their parent organizations had to

bail out these AMC’s by paying large amounts of money as the difference between the

guaranteed and actual returns. The service levels were also very bad.

Most of these AMC’s have not been able to retain staff, float new schemes etc. and it is

doubtful whether, barring a few exceptions, they have serious plans of continuing the

activity in a major way. The experience of some of the AMC’s floated by private sector

Indian companies was also very similar. They quickly realized that the AMC business is

a business, which makes money in the long term and requires deep-pocketed support in

the intermediate years.

Some have sold out to foreign owned companies, some have merged with others

and there is general restructuring going on. The foreign owned companies have deep

pockets and have come in here with the expectation of a long haul. They can be credited

with introducing many new practices such as new product innovation, sharp improvement

in service standards and disclosure, usage of technology, broker education and support

etc. In fact, they have forced the industry to upgrade itself and service levels of

organizations like UTI have improved dramatically in the last few years in response to

the competition provided by these.

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WHY SHOULD INVESTORS INVEST IN MUTUAL FUND?

An investor avails of the service of experienced and skilled professionals who are

backed by a dedicated of companies and selects suitable investments to achieve the

objectives of the schemes.

• Mutual funds invest in a number of companies across a broad cross- section of

industries and sectors. This diversification reduces the risk because seldom do all the

stocks decline at the same time and in the same proportion. The investors achieve this

diversification through a mutual fund with far less money than you can do on our own.

• Investing in a mutual fund reduces paperwork and helps an investor avoid many

problems such as bad deliveries, delayed payments and unnecessary follow.

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EMERGING ISSUES IN MUTUAL FUND

• Rating of Mutual Fund Schemes:

Total returns has been the criteria for measuring the performance of mutual fund.

Therefore, CRISIL has development a composite performance ranking which measures

performance for each of the open- ended schemes. According to CRISIL, this measures is

applicable only to those schemes, which are at least two years old and disclose 100% of

their portfolios.

• Changes in Mutual Fund due to the Advent of Net:

As per SEBI regulations, bond funds and equity funds can charge a maximum of

2.25% and 2.5% as administrative fees, respectively. Mutual Funds could bring down

their administrative costs to 0.75%, if trading is done online and consequently improves

the return potential of their schemes. Mutual Funds could provide better advise or servise

to their investors through the Net.

• New Norms on NPA Classification:

The Malegan committee has made important recommendations regarding norms

on classification of NPAs in debt securities and norms for valuation of liquid securities in

a mutual fund schemes. The committee has recommended that debt securities held by

mutual fund in their portfolio can be classified as NPA, if the principal or interest is not

received for six months. The mutual funds will have to disclose the NPAs to unit holders

in a half-yearly basis.

• INFLUENCE OF TECHNOLOGY :

A majority of the mutual fund have their own websites providing basic

information relating to the schemes. Mutual Fund have begun to use electronic fund

transfer method top remit their dividends and redemption proceeds. However, the most

significant influence of technology is seen in servicing investors. So technology can

bridge the gap between investor education and products positioning.

• PRODUCT INNOVATION:

Product innovation is an emerging feature in the mutual fund industry in India.

Most of the products offered by mutual fund can be divided among three classes of cash

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funds, income funds and equity funds. The year 2002 was different in that the products

offered were far more innovative. Templeton India launched a debt fund that would

invest predominantly in floating rate bonds.

• INDICES FOR MUTUAL FUNDS:

The AMFI has recently launched four indices for gilt funds and another set of

indices for balanced funds, bond funds, monthly income plans and liquid funds. The

indices, which have been developed and will be maintained by ICICI securities and

finance companied and CRISIL.com, respectively, will be mandated for use by mutual

funds to enable the comparison of performance.

• FUNDS OF FUNDS:

The SEBI may soon permit mutual funds to float a new category of funds called

“funds of funds”, which will invest in other mutual fund schemes. These scheme will

enable people to invest in different mutual funds schemes through a single find.

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MUTUAL FUND BEST PRCTICES

THE PRACTICE OF “RESTFUL”

Risk- Reward Relationship:

A clear and direct relationship of risk with reward has to be developed and the

concept instilled in the mind of the investor, and this is the basis of all classification of

Mutual Fund.

Ease of Business:

The business of Mutual Fund is not an easy one. It is easy only for the ones who

have either been in the business for a long time, or for the people, institutions which have

been in the investment space for a long time and are willing to experiment and learn from

their mistake, and can be flexible.

Service:

The service provision ought to be flawless, for after all, Mutual Fund is a service,

and the only way the number of customers can be increased and the existing ones

retained is by providing a higher level of service, thereby increasing customer

satisfaction.

Trust / Transparency:

A high level of transparency has to be built into the system of processes and

investments in Mutual Fund. This is of vital importance as the terms “Transparency” and

“Trust”, in the case of Mutual Funds is synonyms. Trust in the firm would come only

with transparency. And with Trust would come more business.

Fairness to Investors:

This, of course, is an offshoot of the previous point that we made. No business

can survive unless it is fair to the customer. However, what is important here is that it has

to be made evidently clear that the firm is actually being fair to its customers. Modesty

doesn’t help, and this has to be told to your customers so that they actually notice.

Utility:

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The objective of the investment have to be always kept in mind while marketing

Mutual Fund, for if there is a deviation, its utility is lost, or the customers remain

unsatisfied.

Liquidity:

This has again and again highlighted, for it the basic premise that most investors

invest in Mutual Fund only because of the high level of liquidity. There has to be a good

market development for your issue, so that there is a ready market available for them.

COMPARATIVE STUDY OF MUTUAL FUNDS ON THE BASES OF A LPHA,

BETA AND STANDARD DEVIATION

ALPHA :-

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Measures how much if any of the extra risk helped the fund outperform its

corresponding benchmark. Using beta, alpha's computation compares the fund's

performance to that of the benchmark's risk-adjusted returns and establishes if the fund's

returns outperformed the market's, given the same amount of risk.

For example, if a fund has an alpha of 1, it means that the fund outperformed the

benchmark by 1%. Negative alphas are bad in that they indicate that the fund under

performed for the amount of extra, fund-specific risk that the fund's investors undertook.

BETA :-

Beta is useful statistical measure, which determines the volatility, or risk, of a

fund in comparison to that of its index or benchmark. A fund with a beta very close to 1

means the fund's performance closely matches the index or benchmark. A beta greater

than 1 indicates greater volatility than the overall market, and a beta less than 1 indicates

less volatility than the benchmark.

STANDARD DEVIATION :-

The standard deviation essentially reports a fund's volatility, which indicates the

tendency of the returns to rise or fall drastically in a short period of time. A security that

is volatile is also considered higher risk because its performance may change quickly in

either direction at any moment. The standard deviation of a fund measures this risk by

measuring the degree to which the fund fluctuates in relation to its mean return.

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SENSEX RETURNS:

MONTH SENSEX RETURNS

March -0.14

April 0.14

May 0.02

June -0.17

July 0.11

CALCULATION OF RETURNS ON MUTUAL FUND SCHEMES:

BALANCE FUND:

TATA BALANCED FUND (GROWTH)

PRU ICICI FUND (GROWTH)

HDFC PRUDENCE FUND (GROWTH)

MAGNUM BALANCE FUND (GROWTH)

JM BALANCED FUND (GROWTH)

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TATA BALANCED FUND

DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV

RETURN RETURN RETURN RETURN RETURN

(%) (%) (%) (%) (%)

1-Mar -1.30% 2-Apr -1.94 3-May 1.16% 1-Jun 0.09% 2-Jul 0.34%

2-Mar -3.23% 3-Apr 0.74% 4-May -0.39% 4-Jun -0.49% 3-Jul 0.74%

5-Mar 1.10% 4-Apr 1.06% 7-May -0.23% 5-Jun 0.62% 4-Jul 0.17%

6-Mar 1.10% 5-Apr 0.55% 8-May -0.44% 6-Jun -1.10% 5-Jul -0.27%

7-Mar -0.91% 9-Apr 1.64% 9-May 0.07% 7-Jun -0.09% 6-Jul 0.52%

8-Mar 2.36% 10-Apr 0.28% 10-May 0.01% 8-Jun -0.59% 9-Jul 0.45%

9-Mar -0.84% 11-Apr 0.50% 11-May 0.26% 11-Jun -0.22% 10-Jul -0.39%

12-Mar 0.80% 12-Apr -0.13% 14-May 0.83% 12-Jun -0.11% 11-Jul 0.14%

13-Mar 0.82% 13-Apr 1.52% 15-May 0.08% 13-Jun -0.45% 12-Jul 1.17%

14-Mar -1.96% 16-Apr 1.74% 16-May 1.19% 14-Jun 1.18% 13-Jul 0.83%

16-Mar -0.60% 17-Apr -0.47% 17-May 0.83% 15-Jun 0.04% 16-Jul 0.17%

19-Mar 1.33% 18-Apr 0.01% 18-May -0.05% 18-Jun -0.25% 17-Jul -0.68%

20-Mar 0.24% 19-Apr 0.06% 21-May 0.59% 19-Jun 1.11% 19-Jul 0.83%

21-Mar 0.93% 20-Apr 1.08% 22-May 0.24% 20-Jun 0.75% 20-Jul 0.07%

22-Mar 1.87% 23-Apr 0.10% 23-May -0.28% 21-Jun 0.70% 23-Jul 0.94%

23-Mar 0.31% 24-Apr 0.81% 24-May -0.62% 22-Jun -0.23% 24-Jul 0.14%

26-Mar -0.41% 25-Apr 0.16% 25-May 0.55% 25-Jun 0.31% 25-Jul -0.75%

28-Mar -1.17% 26-Arp -0.13% 28-May 0.37% 26-Jun 0.48% 26-Jul -0.09%

27-Apr -0.78% 29-May 0.71% 27-Jun -0.31% 27-Jul 2.66%

30-Apr 0.61% 30-May -0.47% 28-Jun 0.29% 30-Jul 0.01%

31-May 0.79% 29-Jun 0.95% 31-Jul 1.67%

TOTAL 0.44% TOTAL -1.85% TOTAL 5.20% TOTAL 2.68% TOTAL 8.67% Avg. RETURNS 0.02%

Avg. RETURNS

-0.092325

Avg. RETURNS 0.25%

Avg. RETURNS 0.13%

Avg. RETURNS 0.41%

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PRU ICICI BALANCED FUND

DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV

RETURN RETURN RETURN RETURN RETURN

(%) (%) (%) (%) (%)

1-Mar 1.05% 2-Apr -1.92% 3-May 1.03% 1-Jun 0.16% 2-Jul 0.02%

2-Mar -1.66 3-Apr 0.80% 4-May -0.74% 4-Jun -0.60% 3-Jul 0.90%

5-Mar -3.23% 4-Apr 0.64% 7-May -0.34% 5-Jun 0.55% 4-Jul -0.22%

6-Mar 1.44% 5-Apr 0.39% 8-May -0.60% 6-Jun -1.62% 5-Jul -0.08%

7-Mar -0.86% 9-Apr 1.57% 9-May 0.09% 7-Jun -0.06% 6-Jul 0.14%

8-Mar 2.54% 10-Apr -0.12% 10-May 0.09% 8-Jun -0.56% 9-Jul 0.57%

9-Mar -0.70% 11-Apr 0.42% 11-May 0.55% 11-Jun 0.03% 10-Jul -0.30%

12-Mar 0.34% 12-Apr -0.47% 14-May 1.15% 12-Jun -0.20% 11-Jul 0.30%

13-Mar 0.76% 13-Apr 1.96% 15-May 0.17% 13-Jun -0.59% 12-Jul 0.97%

14-Mar -2.11% 16-Apr 1.20% 16-May 0.79% 14-Jun 1.27% 13-Jul 0.59%

16-Mar 0.00% 17-Apr -0.66% 17-May 0.79% 15-Jun 0.03% 16-Jul -0.21%

19-Mar 1.11% 18-Apr 0.38% 18-May -0.17% 18-Jun -0.34% 17-Jul -0.16%

20-Mar 0.76% 19-Apr -0.12% 21-May 1.01% 19-Jun 0.92% 19-Jul 0.83%

21-Mar 0.70% 20-Apr 1.24% 22-May 0.06% 20-Jun 0.78% 20-Jul 0%

22-Mar 1.71% 23-Apr 0.03% 23-May -0.39% 21-Jun 0.22% 23-Jul 0.69%

23-Mar -0.15% 24-Apr 0.66% 24-May -0.58% 22-Jun -0.47% 24-Jul 0.21%

26-Mar -0.59% 25-Apr 0.37% 25-May 0.59% 25-Jun -0.06% 25-Jul -0.92%

28-Mar -1.31% 26-Apr -0.23% 28-May 0.83% 26-Jun 0.36% 26-Jul -0.18%

27-Apr -1.33% 29-May 0.55% 27-Jun -0.17% 27-Jul -2.70%

30-Apr 0.03% 30-May -0.79% 28-Jun 0.19% 30-Jul -0.24%

31-May 0.41% 29-Jun 0.85% 31-Jul 1.61%

TOTAL -0.20% TOTAL 4.84% TOTAL 4.50% TOTAL 0.69% TOTAL 1.90% Avg. RETURNS 0.25%

Avg. RETURNS 0.24%

Avg. RETURNS 0.21%

Avg. RETURNS 0.03%

Avg. RETURNS 0.09%

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HDFC PRUDENCE FUND

DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV

RETURN RETURN RETURN RETURN RETURN

(%) (%) (%) (%) (%)

1-Mar 0.15% 2-Apr -1.50% 3-May 0.79% 1-Jun 0.71% 2-Jul 0.72% 2-Mar -1.05% 3-Apr 0.52% 4-May -0.57% 4-Jun -0.57% 3-Jul 0.67% 5-Mar -3.39% 4-Apr 0.75% 7-May -0.12% 5-Jun 0.72% 4-Jul -0.51% 6-Mar 0.09% 5-Apr 0.61% 8-May -0.59% 6-Jun -0.88% 5-Jul -0.34%

7-Mar -1.34% 9-Apr 1.49% 9-May 0.22% 7-Jun -0.11% 6-Jul 0.28% 8-Mar 1.91% 10-Apr 0.55% 10-May -0.01% 8-Jun -0.36% 9-Jul 0.75% 9-Mar -0.19% 11-Apr 0.83% 11-May 0.48% 11-Jun 0.15% 10-Jul -0.24%

12-Mar 0.66% 12-Apr -0.47% 14-May 1.37% 12-Jun -0.66% 11-Jul -0.06%

13-Mar 0.29% 13-Apr 0.97% 15-May 0.30% 13-Jun -0.15% 12-Jul 1.17% 14-Mar -1.42% 16-Apr 1.50% 16-May 0.62% 14-Jun 1.17% 13-Jul 0.28% 16-Mar -0.14% 17-Apr -0.73% 17-May 0.11% 15-Jun 0.16% 16-Jul 0.66% 19-Mar 0.68% 18-Apr 0.09% 18-May -0.30% 18-Jun -0.24% 17-Jul -0.65%

20-Mar 0.72% 19-Apr 0.01% 21-May 0.57% 19-Jun 0.69% 19-Jul 1.02% 21-Mar 0.98% 20-Apr 0.45% 22-May 0.24% 20-Jun 1.12% 20-Jul 0.13% 23-Mar -0.24% 23-Apr 0.13% 23-May 0.01% 21-Jun 0.41% 23-Jul 0.57% 26-Mar -0.31% 24-Apr 0.24% 24-May -0.85% 22-Jun -0.32% 24-Jul -0.07%

28-Mar -1.18% 25-Apr 0.55% 25-May 0.37% 25-Jun 0.21% 25-Jul -0.42% 26-Apr -0.26% 28-May 1.21% 26-Jun 0.37% 26-Jul 0.19% 27-Apr -0.41% 29-May 0.33% 27-Jun 0.11% 27-Jul -1.49% 30-Apr 0.81% 30-May -0.42% 28-Jun -0.09% 30-Jul -0.04% 31-May 0.88% 29-Jun 0.71% 31-Jul 1.73%

TOTAL -3.78% TOTAL 6.13% TOTAL 4.64% TOTAL 3.15% TOTAL 4.35% Avg. RETURNS -0.22%

Avg. RETURNS 0.31%

Avg. RETURNS 0.22%

Avg. RETURNS 0.15%

Avg. RETURNS 0.21%

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MAGNUM BALANCE FUND

DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV

RETURN RETURN RETURN RETURN RETURN

(%) (%) (%) (%) (%)

1-Mar 0.89% 2-Apr -2.00% 3-May 0.45% 1-Jun 0.32% 2-Jul 0.65%

2-Mar -1.38% 3-Apr 0.52% 4-May -0.28% 4-Jun -0.24% 3-Jul 0.86%

5-Mar -2.64% 4-Apr 0.88% 7-May -0.31% 5-Jun 0.05% 4-Jul 0.08%

6-Mar 1.01% 5-Apr 0.39% 8-May -0.78% 6-Jun -1.01% 5-Jul -0.36%

7-Mar -0.60% 9-Apr 1.34% 9-May 0.31% 7-Jun -0.05% 6-Jul 0.13%

8-Mar 2.09% 10-Apr 0.32% 10-May 0.14% 8-Jun -0.94% 9-Jul 0.72%

9-Mar -0.71% 11-Apr 0.35% 11-May 0.48% 11-Jun -0.35% 10-Jul -0.13%

12-Mar 0.21% 12-Apr -0.56% 14-May 0.75% 12-Jun -0.44% 11-Jul 0.23%

13-Mar 0.72% 13-Apr 1.41% 15-May -0.08% 13-Jun -0.33% 12-Jul 0.72%

14-Mar -1.96% 16-Apr 1.65% 16-May 1.36% 14-Jun 0.90% 13-Jul 0.56%

16-Mar -0.70% 17-Apr -0.57% 17-May 0.60% 15-Jun 0.24% 16-Jul 0.53%

19-Mar 1.46% 18-Apr 0.60% 18-May 0.33% 18-Jun 0.00% 17-Jul -0.53%

20-Mar 0.57% 19-Apr 0.03% 21-May 0.62% 19-Jun 1.27% 19-Jul 0.63%

21-Mar 0.63% 20-Apr 1.11% 22-May 0.00% 20-Jun 0.83% 20-Jul -0.08%

23-Mar 1.42% 23-Apr 0.03% 23-May -0.30% 21-Jun 0.37% 23-Jul 0.28%

26-Mar -0.06% 24-Apr 1.16% 24-May -0.11% 22-Jun -0.29% 24-Jul -0.13%

28-Mar -0.50% 25-Apr 0.86% 25-May 0.54% 25-Jun -0.16% 25-Jul -0.35%

-1.12% 26-Apr -0.39% 28-May 0.27% 26-Jun 0.35% 26-Jul 0.08%

27-Apr -1.16% 29-May 0.99% 27-Jun -0.11% 27-Jul -2.54%

30-Apr 0.51% 30-May -0.27% 28-Jun 0.26% 30-Jul 0.31%

31-May 0.19% 29-Jun 0.92% 31-Jul 1.34%

TOTAL -0.67% TOTAL 6.48% TOTAL 4.90% TOTAL 1.59% TOTAL 3.00% Avg. RETURNS -0.04%

Avg. RETURNS 0.32%

Avg. RETURNS 0.23%

Avg. RETURNS 0.08%

Avg. RETURNS 0.14%

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JM BALANCED FUND

DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV

RETURN RETURN RETURN RETURN RETURN

(%) (%) (%) (%) (%)

1-Mar 0.36% 2-Apr -

1.92% 3-May 1.57% 1-Jun 0.04% 2-Jul 1.08%

2-Mar -1.04% 3-Apr 0.70% 4-May -0.88% 4-Jun -0.14% 3-Jul 1.50%

5-Mar -2.75% 4-Apr 0.37% 7-May -0.46% 5-Jun -0.04% 4-Jul 1.04%

6-Mar 0.66% 5-Apr 0.78% 8-May -0.30% 6-Jun -1.23% 5-Jul -0.58%

7-Mar -1.68% 9-Apr 1.28% 9-May 0.00% 7-Jun -0.67% 6-Jul 1.48%

8-Mar 3.28% 10-Apr -

0.05% 10-May 0.30% 8-Jun -0.90% 9-Jul 0.06%

9-Mar -1.06% 11-Apr 0.72% 11-May 0.13% 11-Jun -0.28% 10-Jul 0.57%

12-Mar 1.07% 12-Apr 0.18% 14-May 0.51% 12-Jun -0.75% 11-Jul 0.51%

13-Mar 0.83% 13-Apr 2.37% 15-May -0.13% 13-Jun -0.42% 12-Jul 1.22%

14-Mar -1.37% 16-Apr 2.67% 16-May 1.18% 14-Jun 1.39% 13-Jul 0.57%

16-Mar -0.51% 17-Apr -

0.94% 17-May 0.79% 15-Jun 0.74% 16-Jul 0.57%

19-Mar 1.30% 18-Apr 0.26% 18-May -0.08% 18-Jun -0.75% 17-Jul -0.39%

20-Mar 0.69% 19-Apr -

0.30% 21-May 0.70% 19-Jun 0.88% 19-Jul 0.72%

21-Mar 0.37% 20-Apr 0.90% 22-May 0.70% 20-Jun 0.67% 20-Jul -0.26%

22-Mar 1.55% 23-Apr -

0.51% 23-May -0.61% 21-Jun 0.65% 23-Jul 1.14%

23-Mar 0.04% 24-Apr 0.50% 24-May -0.70% 22-Jun 0.41% 24-Jul -0.24%

26-Mar -0.45% 25-Apr 0.85% 25-May 0.12% 25-Jun -0.34% 25-Jul -1.11%

28-Mar -1.62% 26-Apr -

0.30% 28-May 0.87% 26-Jun 0.35% 26-Jul 0.95%

27-Apr -

1.02% 29-May 0.66% 27-Jun 0.59% 27-Jul -3.04%

30-Apr 0.69% 30-May -0.90% 28-Jun 1.11% 30-Jul 1.35%

31-May 1.69% 29-Jun -0.16% 31-Jul 1.35%

TOTAL -0.33% TOTAL 7.23% TOTAL 5.16% TOTAL 1.15% TOTAL 8.49% Avg. RETURNS -0.02%

Avg. RETURNS 0.36%

Avg. RETURNS 0.25%

Avg. RETURNS 0.05%

Avg. RETURNS 0.40%

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44

CALCULATION OF RETURNS ON MUTUAL FUND SCHEMES:

Month

Sensex

Returns tata bal (Sm-mean) (Mm-mean)

(Sm-Sm)*

(Mm-Mm)

(Sm-mean)*

(Sm-mean)

(Mm-mean)*

(Mm-mean)

March -0.14 0.02 -0.132 -0.1240 0.016368 0.0004 0.015376

April 0.14 -0.09 0.148 -0.2340 -0.034632 0.0081 0.054756

May 0.02 0.25 0.028 0.1060 0.002968 0.0625 0.011236

June -0.17 0.13 -0.162 -0.0140 0.002268 0.0169 0.000196

July 0.11 0.41 0.118 0.2660 0.031388 0.1681 0.070756

TOTAL -0.04 0.72 0.01836 0.256 0.030525

mean -0.008 0.144

BETA 0.01836/ 0.08028 ALPHA 0.1458296

0.2286996 Standard Deviation 0.030525

Month sensex returns

PRU

ICICI (Sm-mean) (Tm-mean) (Sm-Sm)*(Tm-Tm) (Tm-mean)*(tm-mean) (Tm-mean)*(tm-mean)

March -0.14 0.25 -0.132 0.086 -0.011352 0.007396 0.007396

April 0.14 0.24 0.148 0.076 0.011248 0.005776 0.005776

May 0.02 0.21 0.028 0.046 0.001288 0.002116 0.002116

June -0.17 0.03 -0.162 -0.134 0.021708 0.017956 0.017956

July 0.11 0.09 0.118 -0.074 -0.008732 0.005476 0.005476

TOTAL -0.04 0.82 0.01416

MEAN -0.008 0.164

BETA 0.01416/ 0.08028 ALPHA 0.174

0.1654111 Standard Deviation 0.006

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45

Month sensex returns

MAG

BAL (Sm-mean)

(Mm-

mean) (Sm-Sm)*(Tm-Tm) (Tm-mean)*(tm-mean)

March -0.14 -0.04 -0.132 -0.186 -0.186 0.034596

April 0.14 0.32 0.148 0.174 0.174 0.030276

May 0.02 0.23 0.028 0.084 0.084 0.007056

June -0.17 0.08 -0.162 -0.066 -0.066 0.004356

July 0.11 0.14 0.118 -0.006 -0.006 0.013924

TOTAL -0.04 0.73 0.012

MEAN -0.008 0.146

BETA 0.012/ 0.08028 ALPHA 0.1522422

0.149476831 Standard Deviation 0.0137

Month

sensex

returns

HDFC

Pru

(Sm-

mean)

(Mm-

mean)

(Sm-Sm)*(Tm-

Tm)

(Tm-mean)*(tm-

mean)

March -0.14 -0.22 -0.132 -0.354 0.046728 0.125316

April 0.14 0.31 0.148 0.176 0.026048 0.030976

May 0.02 0.22 0.028 0.086 0.002408 0.007396

June -0.17 0.15 -0.162 0.016 -0.002592 0.000256

July 0.11 0.21 0.118 0.076 0.008968 0.005776

TOTAL -0.04 0.67 0.08156

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46

MEAN -0.008 0.134

BETA 0.08156/ 0.08028 ALPHA 0.142127554

1.015944195 Standard Deviation 0.0524

Month sensex returns JM BAL (Sm-mean)

(Mm-

mean) (Sm-Sm)*(Tm-Tm) (Tm-mean)*(tm-mean)

March -0.14 -0.02 -0.132 -0.228 0.030096 0.017424

April 0.14 0.36 0.148 0.152 0.022496 0.021904

May 0.02 0.25 0.028 0.042 0.001176 0.000784

June -0.17 0.05 -0.162 -0.158 0.025596 0.026244

July 0.11 0.4 0.118 0.192 0.022656 0.013924

TOTAL -0.04 1.04 0.10202

MEAN -0.008 0.208

BETA 0.10202/ 0.08028 ALPHA 0.218166418

1.270802192 Standard Deviation 0.0185

SCHEMES BETA ALPHA S.D.

TATA 0.2286996 0.146 0.031

PRU ICICI 0.174 0.165 0.006

HDFC 1.314365517 0.142 0.0524

MAG BAL 0.132383266 0.152 0.0137

JM BAL 1.24 0.218 0.0185

INTERPRETATION :

BETA:

This indicates that HDFC Schemes in balance fund has given return with par with

SENSEX. The highest volatility shown in balance fund is by JM Morgan Balance fund.

And the least volatility is been shown by Magnum Balance Fund.

Alpha:

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47

Alpha of JM Morgan is the higgest, this indicate that with the given risk the fund

has given good return. It indicate that JM Morgan strategy is that, it takes comparatively

more risk but at the same time it gives good return. The less return is given by TATA

Balance Fund.

Standard Deviation:

Standard Deviation indicate volatility in the performance. From the Balance Fund

it indicates that HDFC has high volatility in its portfolio.

Investors who do not want to take much risk normally go for Balanced Funds.in

Balance Fund also investors who are risk averse can go for Pru ICICI as has less beta that

is it is less volatile but at the same time it is giving good returns.

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48

EQUITY FUND:

DSP ML Equity Fund

Reliance Vision Fund

Magnum Multicap Fund

Birla Midcap Fund

Franklin India Opportunities Fund

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49

CALCULATION OF RETURNS ON MUTUAL FUND SCHEMES:

EQUITY DIVERSIFIED

DSP ML Equity Fund

DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV

RETURN RETURN RETURN RETURN RETURN

(%) (%) (%) (%) (%)

1-Mar 1.80% 2-Apr -

1.63% 3-May 1.39% 1-Jun 0.81% 2-Jul 1.53%

2-Mar -1.69% 3-Apr 0.76% 4-May -0.57% 4-Jun -0.45% 3-Jul 0.86%

5-Mar -4.45% 4-Apr 1.23% 7-May -0.09% 5-Jun 0.59% 4-Jul 0.14%

6-Mar 1.26% 5-Apr 0.87% 8-May -0.74% 6-Jun -1.96% 5-Jul -0.41%

7-Mar -1.00% 9-Apr 1.81% 9-May 0.54% 7-Jun -0.20% 6-Jul 0.26%

8-Mar 2.34% 10-Apr 0.24% 10-May 0.57% 8-Jun -0.75% 9-Jul 0.74%

9-Mar -0.52% 11-Apr 0.32% 11-May 0.86% 11-Jun -0.12% 10-Jul -0.05%

12-Mar 0.57% 12-Apr -

0.77% 14-May 2.00% 12-Jun 0.31% 11-Jul 0.49%

13-Mar 0.80% 13-Apr 1.40% 15-May 0.56% 13-Jun -0.58% 12-Jul 1.21%

14-Mar -1.98% 16-Apr 2.10% 16-May 1.53% 14-Jun 0.92% 13-Jul 0.44%

16-Mar -0.38% 17-Apr -

0.10% 17-May 1.01% 15-Jun 0.14% 16-Jul 0.07%

19-Mar 1.27% 18-Apr -

0.23% 18-May 0.10% 18-Jun -0.58% 17-Jul -0.93%

20-Mar 0.72% 19-Apr 0.12% 21-May 1.06% 19-Jun 1.18% 19-Jul 0.69%

21-Mar 0.65% 20-Apr 1.53% 22-May 0.27% 20-Jun 1.12% 20-Jul 0.01%

22-Mar 1.50% 23-Apr 0.13% 23-May -0.73% 21-Jun 1.19% 23-Jul 0.78%

23-Mar -0.19% 24-Apr 1.31% 24-May -0.93% 22-Jun -0.33% 24-Jul -0.23%

26-Mar -0.70% 25-Apr 0.53% 25-May 0.83% 25-Jun -0.08% 25-Jul -0.68%

28-Mar -1.31% 26-Apr -

0.07% 28-May 0.94% 26-Jun 0.55% 26-Jul 0.54%

27-Apr -

1.48% 29-May 0.97% 27-Jun -0.34% 27-Jul -3.88%

30-Apr 0.96% 30-May -0.54% 28-Jun 0.44% 30-Jul 0.79%

31-May 0.72% 29-Jun 1.01% 31-Jul 1.46%

TOTAL -1.31% TOTAL 9.03% TOTAL 9.75% TOTAL 2.87% TOTAL 3.83% Avg. RETURNS -0.07%

Avg. RETURNS 0.45%

Avg. RETURNS 0.46%

Avg. RETURNS 0.14%

Avg. RETURNS 0.18%

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50

Reliance Vision Fund - (G)

DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV

RETURN RETURN RETURN RETURN RETURN

(%) (%) (%) (%) (%)

1-Mar 1.25% 2-Apr -

2.36% 3-May 1.94% 1-Jun 0.54% 2-Jul 0.85%

2-Mar -2.32% 3-Apr 1.09% 4-May -0.21% 4-Jun -0.93% 3-Jul 0.50%

5-Mar -4.74% 4-Apr 0.84% 7-May -0.34% 5-Jun -0.18% 4-Jul 0.62%

6-Mar 1.31% 5-Apr 0.87% 8-May -0.78% 6-Jun -1.18% 5-Jul -0.18%

7-Mar -0.97% 9-Apr 2.30% 9-May 0.42% 7-Jun -0.12% 6-Jul 0.70%

8-Mar 3.96% 10-Apr 0.48% 10-May 0.01% 8-Jun -0.70% 9-Jul 1.19%

9-Mar -1.29% 11-Apr 0.15% 11-May 0.80% 11-Jun 0.22% 10-Jul -0.55%

12-Mar 0.17% 12-Apr -

0.06% 14-May 1.00% 12-Jun -0.27% 11-Jul -0.19%

13-Mar 1.10% 13-Apr 1.98% 15-May 0.21% 13-Jun -0.55% 12-Jul 1.78%

14-Mar -2.52% 16-Apr 1.28% 16-May 1.04% 14-Jun 1.29% 13-Jul 0.39%

16-Mar -0.66% 17-Apr -

0.83% 17-May 1.34% 15-Jun 0.13% 16-Jul 0.39%

19-Mar 1.52% 18-Apr 0.35% 18-May -0.26% 18-Jun 0.24% 17-Jul -0.71%

20-Mar 0.77% 19-Apr 0.11% 21-May 0.63% 19-Jun 1.68% 19-Jul 1.49%

21-Mar 0.67% 20-Apr 1.32% 22-May 0.74% 20-Jun 1.27% 20-Jul 0.02%

22-Mar 2.14% 23-Apr 0.23% 23-May -0.84% 21-Jun 0.45% 23-Jul 0.49%

23-Mar -0.03% 24-Apr 1.02% 24-May 0.31% 22-Jun 0.07% 24-Jul 0.02%

26-Mar -1.11% 25-Apr 0.68% 25-May 0.32% 25-Jun 0.39% 25-Jul -0.79%

28-Mar -1.52% 26-Apr 0.69% 28-May 0.72% 26-Jun 0.18% 26-Jul 0.36%

27-Apr -

1.41% 29-May 0.96% 27-Jun -0.27% 27-Jul -2.42%

30-Apr 1.00% 30-May -0.52% 28-Jun 0.70% 30-Jul 0.19%

31-May 1.02% 29-Jun 0.71% 31-Jul 1.54%

TOTAL -2.27% TOTAL 9.73% TOTAL 8.51% TOTAL 3.67% TOTAL 5.69% Avg. RETURNS -0.13%

Avg. RETURNS 0.49%

Avg. RETURNS 0.41%

Avg. RETURNS 0.17%

Avg. RETURNS 0.27%

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51

Magnum Multicap Fund (G)

DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV

RETURN RETURN

RETURN

RETURN

RETURN

(%) (%) (%) (%) (%)

1-Mar 0.62% 2-Apr -2.65% 3-May 1.04% 1-Jun 0.81% 2-Jul 1.11% 2-Mar -1.65% 3-Apr 0.64% 4-May -0.38% 4-Jun -1.05% 3-Jul 0.86% 5-Mar -4.13% 4-Apr 1.07% 7-May -0.84% 5-Jun 0.44% 4-Jul -0.06%

6-Mar 1.46% 5-Apr 1.20% 8-May -1.30% 6-Jun -1.75% 5-Jul 0.18% 7-Mar -1.15% 9-Apr 1.88% 9-May -0.20% 7-Jun -0.57% 6-Jul 0.91% 8-Mar 3.50% 10-Apr 0.20% 10-May -0.59% 8-Jun -0.83% 9-Jul 0.72% 9-Mar -1.20% 11-Apr 0.20% 11-May 0.26% 11-Jun -0.32% 10-Jul -0.36%

12-Mar 0.57% 12-Apr -0.82% 14-May 1.72% 12-Jun -0.19% 11-Jul -0.12% 13-Mar 0.92% 13-Apr 1.58% 15-May 0.00% 13-Jun -0.58% 12-Jul 1.38% 14-Mar -2.11% 16-Apr 2.56% 16-May 1.23% 14-Jun 1.37% 13-Jul 1.12% 16-Mar -1.15% 17-Apr -0.85% 17-May 0.64% 15-Jun 0.39% 16-Jul -0.41% 19-Mar 1.45% 18-Apr 0.20% 18-May 0.00% 18-Jun -0.32% 17-Jul -0.70% 20-Mar 1.14% 19-Apr -0.73% 21-May 0.89% 19-Jun 1.22% 19-Jul 1.12% 21-Mar 1.13% 20-Apr 1.13% 22-May 0.25% 20-Jun 1.20% 20-Jul 0.64% 22-Mar 2.24% 23-Apr 0.40% 23-May -0.50% 21-Jun 0.63% 23-Jul 0.87%

23-Mar 0.14% 24-Apr 2.04% 24-May -0.89% 22-Jun -0.44% 24-Jul 0.12% 26-Mar -0.68% 25-Apr 0.84% 25-May 0.45% 25-Jun -0.06% 25-Jul -0.86% 28-Mar -1.24% 26-Apr -0.26% 28-May 1.72% 26-Jun 0.44% 26-Jul 0.70%

27-Apr -1.47% 29-May 0.69% 27-Jun -0.75% 27-Jul -3.40%

30-Apr 0.32% 30-May -1.61% 28-Jun 0.19% 30-Jul 0.00% 31-May 1.07% 29-Jun 1.25% 31-Jul 2.09%

TOTAL -0.14% TOTAL 7.48% TOTAL 3.65% TOTAL 1.08% TOTAL 5.91% Avg. RETURNS -0.01%

Avg. RETURNS 0.37%

Avg. RETURNS 0.17%

Avg. RETURNS 0.05%

Avg. RETURNS 0.28%

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Birla Midcap Fund (G)

DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV

RETURN RETURN RETURN RETURN RETURN

(%) (%) (%) (%) (%)

1-Mar 0.21% 2-Apr -1.48% 3-May 0.51% 1-Jun -0.08% 2-Jul 1.24% 2-Mar -0.96% 3-Apr 0.52% 4-May 0.43% 4-Jun -0.70% 3-Jul 0.66% 5-Mar -4.75% 4-Apr 1.05% 7-May -0.29% 5-Jun 0.48% 4-Jul 0.98% 6-Mar 0.29% 5-Apr 0.64% 8-May -0.38% 6-Jun -0.84% 5-Jul -0.01%

7-Mar -1.49% 9-Apr 1.72% 9-May 0.24% 7-Jun -0.18% 6-Jul 0.30% 8-Mar 2.37% 10-Apr 1.14% 10-May 0.59% 8-Jun -0.49% 9-Jul 1.00% 9-Mar -0.61% 11-Apr 0.84% 11-May 1.33% 11-Jun -0.18% 10-Jul -0.63%

12-Mar 0.50% 12-Apr -0.26% 14-May 1.75% 12-Jun -0.61% 11-Jul 0.64% 13-Mar 0.87% 13-Apr 1.29% 15-May 0.37% 13-Jun -0.49% 12-Jul 1.47% 14-Mar -1.67% 16-Apr 1.66% 16-May 1.64% 14-Jun 1.19% 13-Jul 1.40% 16-Mar -0.57% 17-Apr 0.00% 17-May 0.27% 15-Jun 0.44% 16-Jul 1.10% 19-Mar 0.78% 18-Apr 0.36% 18-May 0.11% 18-Jun 0.07% 17-Jul -0.76%

20-Mar 0.82% 19-Apr 0.27% 21-May 1.31% 19-Jun 1.03% 19-Jul 0.91% 21-Mar 0.39% 20-Apr 0.49% 22-May 0.16% 20-Jun 1.69% 20-Jul -0.35% 22-Mar 1.29% 23-Apr -0.16% 23-May -0.48% 21-Jun 0.62% 23-Jul 0.55% 23-Mar 0.32% 24-Apr 1.66% 24-May -0.70% 22-Jun -0.40% 24-Jul -0.25%

26-Mar -0.52% 25-Apr 0.77% 25-May 0.47% 25-Jun 0.21% 25-Jul -0.85% 28-Mar -1.44% 26-Apr -0.32% 28-May 1.24% 26-Jun 0.26% 26-Jul 1.02%

27-Apr -0.68% 29-May 0.35% 27-Jun 0.00% 27-Jul -2.74% 30-Apr 0.88% 30-May -0.41% 28-Jun 0.66% 30-Jul 0.60% 31-May 1.11% 29-Jun 0.95% 31-Jul 1.44%

TOTAL -4.17% TOTAL 10.39% TOTAL 9.62% TOTAL 3.63% TOTAL 7.72% Avg. RETURNS -0.23%

Avg. RETURNS 0.52%

Avg. RETURNS 0.46%

Avg. RETURNS 0.17%

Avg. RETURNS 0.37%

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53

Franklin India Opportunities Fund - (G) DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV

RETURN RETURN RETURN RETURN RETURN

(%) (%) (%) (%) (%)

1-Mar 0.08% 2-Apr -1.31% 3-May 0.58% 1-Jun 0.22% 2-Jul 0.84%

2-Mar -1.25% 3-Apr 0.35% 4-May -0.22% 4-Jun -1.01% 3-Jul 1.25%

5-Mar -4.53% 4-Apr -0.17% 7-May -0.55% 5-Jun 0.27% 4-Jul 0.13%

6-Mar 0.98% 5-Apr 0.86% 8-May -0.78% 6-Jun -2.11% 5-Jul -0.56%

7-Mar -2.63% 9-Apr 2.13% 9-May 0.27% 7-Jun -0.59% 6-Jul 0.57%

8-Mar 4.33% 10-Apr 1.23% 10-May 0.03% 8-Jun -0.29% 9-Jul 0.43%

9-Mar -0.86% 11-Apr 0.20% 11-May 0.69% 11-Jun -0.09% 10-Jul -0.12%

12-Mar 1.74% 12-Apr 0.70% 14-May 1.30% 12-Jun -0.29% 11-Jul 0.33%

13-Mar 1.41% 13-Apr 1.43% 15-May 0.01% 13-Jun -0.25% 12-Jul 1.67%

14-Mar -1.65% 16-Apr 1.56% 16-May 1.72% 14-Jun 2.07% 13-Jul 0.80%

16-Mar -0.52% 17-Apr -1.12% 17-May 1.03% 15-Jun -0.18% 16-Jul 0.63%

19-Mar 0.95% 18-Apr 0.33% 18-May -0.34% 18-Jun -0.01% 17-Jul -1.56%

20-Mar 1.07% 19-Apr -0.16% 21-May 1.08% 19-Jun 1.24% 19-Jul 0.32%

21-Mar 1.02% 20-Apr 1.37% 22-May 0.67% 20-Jun 1.09% 20-Jul -0.34%

22-Mar 1.17% 23-Apr -0.09% 23-May -0.79% 21-Jun 0.34% 23-Jul 1.04%

23-Mar 0.21% 24-Apr 0.65% 24-May 0.05% 22-Jun 0.55% 24-Jul -0.46%

26-Mar -0.74% 25-Apr 1.65% 25-May 0.18% 25-Jun 0.47% 25-Jul -0.64%

28-Mar -1.37% 26-Apr 0.12% 28-May 1.92% 26-Jun 0.88% 26-Jul 1.04%

27-Apr -1.42% 29-May 1.06% 27-Jun -0.53% 27-Jul -4.39%

30-Apr -0.04% 30-May -0.56% 28-Jun 0.74% 30-Jul 0.54%

31-May 0.64% 29-Jun 0.37% 31-Jul 1.68%

TOTAL -0.59% TOTAL 8.27% TOTAL 7.99% TOTAL 2.89% TOTAL 3.20% Avg. RETURNS -0.03%

Avg. RETURNS 0.41%

Avg. RETURNS 0.73%

Avg. RETURNS 0.14%

Avg. RETURNS 0.15%

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54

EQUITY DIVERSIFIED

BETA 0.08728/ 0.08028 ALPHA 0.241

1.087194818 Standard Deviation 0.036

Month

sensex

returns Rel VIS

(Sm-

mean)

(Rm-

mean)

(Sm-Sm)*(Tm-

Tm)

(Tm-mean)*(tm-

mean)

March -0.14 -0.13 -0.132 -0.372 0.049104 0.138384

April 0.14 0.49 0.148 0.248 0.036704 0.061504

May 0.02 0.41 0.028 0.168 0.004704 0.028224

June -0.17 0.17 -0.162 -0.072 0.011664 0.005184

July 0.11 0.27 0.118 0.028 0.003304 0.000784

Month

sensex

returns

DSP

ML

Eq

(Sm-

mean)

(Dm-

mean)

(Sm-

Sm)*(Tm-

Tm)

(Sm-mean)*(Sm-

mean)

(Tm-mean)*(tm-

mean)

March -0.14 -0.07 -0.132 -0.302 0.039864 0.017424 0.091204

April 0.14 0.45 0.148 0.218 0.032264 0.021904 0.047524

May 0.02 0.46 0.028 0.228 0.006384 0.000784 0.051984

June -0.17 0.14 -0.162 -0.092 0.014904 0.026244 0.008464

July 0.11 0.18 0.118 -0.052 -0.006136 0.013924 0.002704

TOTAL -0.04 1.16 0.08728

MEAN -0.008 0.232

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55

TOTAL -0.04 1.21 0.10548

MEAN -0.008 0.242

BETA 0.10548/0.08028 ALPHA 0.2525

1.313901345 Standard Deviation 0.057

Month sensex returns Mag Mul (Sm-mean)

(Mm-

mean) (Sm-Sm)*(Tm-Tm) (Tm-mean)*(tm-mean)

March -0.14 -0.01 -0.132 -0.182 0.024024 0.033124

April 0.14 0.37 0.148 0.198 0.029304 0.039204

May 0.02 0.17 0.028 -0.002 -0.000056 0.00

June -0.17 0.05 -0.162 -0.122 0.019764 0.014884

July 0.11 0.28 0.118 0.108 0.012744 0.011664

0.016095686

TOTAL -0.04 0.86 0.18466

MEAN -0.008 0.172

BETA 0.08578/ 0.08028 ALPHA 0.181

1.068510214 Standard Deviation 0.0161

Month

sensex

returns

Birla

Mid

(Sm-

mean)

(Bm-

mean)

(Sm-Sm)*(Tm-

Tm)

(Tm-mean)*(tm-

mean)

March -0.14 -0.23 -0.132 -0.488 0.064416 0.017424

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56

April 0.14 0.52 0.148 0.262 0.038776 0.021904

May 0.02 0.46 0.028 0.202 0.005656 0.000784

June -0.17 0.17 -0.162 -0.088 0.014256 0.026244

July 0.11 0.37 0.118 0.112 0.013216 0.013924

TOTAL -0.04 1.29 0.13632

MEAN -0.008 0.258

BETA 0.13632/0.08028 ALPHA 0.272

1.698056801 Standard Deviation 0.0952

Month

sensex

returns

Fran Ind

Opp

(Sm-

mean)

(Bm-

mean)

(Sm-Sm)*(Tm-

Tm)

(Tm-mean)*(tm-

mean)

March -0.14 -0.03 -0.132 -0.31 0.04092 0.0961

April 0.14 0.41 0.148 0.13 0.01924 0.0169

May 0.02 0.73 0.028 0.45 0.0126 0.2025

June -0.17 0.14 -0.162 -0.14 0.02268 0.0196

July 0.11 0.15 0.118 -0.13 -0.01534 0.0169

TOTAL -0.04 1.4 0.0801

MEAN -0.008 0.28

BETA 0.0801/0.08028 ALPHA 0.288

0.997757848 Standard Deviation 0.087

SCHEMES BETA ALPHA S.D. DSP ML Eq 1.09 0.241 0.036

Rel VIS 1.31 0.252 0.057 Mag Mul 1.07 0.181 0.016 Birla Mid 1.698 0.272 0.095 Fran Ind

Opp 0.998 0.288 0.087

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57

II NNTTEERRPPRREETTAATTII OONN

BBEETTAA::

BBeettaa ooff BBii rrllaa MMiiddccaapp EEqquuii ttyy SScchheemmee iiss tthhee hhiigghheesstt,, tthhiiss iinnddiiccaattee tthhaatt tthhee rriisskk

pprrooff ii llee ooff BBii rrllaa MMuuttuuaall FFuunndd ffoorr EEqquuii ttyy sscchheemmeess iiss mmoorree.. IInn eeqquuiittyy sscchheemmeess aall ll tthhee aabboovvee

mmeennttiioonn sscchheemmeess hhaavvee sshhoowwnn vvoollaattii ll ii ttyy aass ccoommppaarreedd ttoo SSEENNSSEEXX..

BBuutt FFrraannkkll iinn IInnddiiaa OOppppoorrttuunniieess FFuunndd hhaass sshhoowwnn lleessss vvoollaattii ll ii ttyy aass ccoommppaarreedd ttoo

ootthheerr EEqquuii ttyy MMuuttuuaall FFuunndd..

AALL PPHHAA ::

TThhee hhiigghheesstt rreettuurrnn iiss ggiivveenn bbyy FFrraannkkll iinn IInnddiiaa OOppppoorrttuunniieess FFuunndd.. BBuutt tthhee rriisskk ttaakkeenn

bbyy tthhiiss ffuunndd iiss lleessss.. MMaaggnnuumm MMuull ttiiccaapp ffuunndd hhaass sshhoowwnn vvoollaattii ll ii ttyy aatt ppaarr wwii tthh SSEENNSSEEXX bbuutt

aammoonngg tthhee EEqquuii ttyy SScchheemmeess tthhiiss ffuunndd hhaass ggiivveenn lleessss rreettuurrnnss..

SSTTAANNDDAARRDD DDEEVVII AATTII OONN::

BBii rrllaa aanndd FFrraannkkll iinn EEqquuii ttyy MMuuttuuaall FFuunndd hhaass sshhoowwnn mmoorree ddeevviiaattiioonn iinn ii ttss

MMoovveemmeenntt.. TThheerreeffoorree tthheessee ffuunndd hhaass sshhoowwnn mmoorree vvoollaattii ll ii ttyy iinn ii ttss ppeerrffoorrmmaannccee..

FFoorr iinnvveessttoorrss wwhhoo iinnvveesstt iinn EEqquuii ttyy FFuunndd ffoorr ggeettttiinngg mmoorree rreettuurrnnss aass ccoommppaarreedd ttoo

ootthheerr sscchheemmeess,, tthheerreeooffoorree iinn oorrddeerr ttoo ggeett mmoorree rreettuurrnnss tthheeyy hhaavvee ttoo ttaakkee mmoorree rriisskkss..

IInnvveessttoorrss wwhhoo ddoonnoott wwaanntt ttoo ttaakkee rriisskk bbuutt wwaanntt ttoo ggeett mmoorree rreettuurrnnss ccaann ggoo ffoorr FFrraannkkll iinn

IInnddiiaa OOppppoorrttuunniieess FFuunndd

GGII LL TT FFUUNNDD::

DDSSPP MMLL GG--SSEECC FFUUNNDD

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58

MMAAGGNNUUMM GGIILLTT FFUUNNDD((SSHHOORRTT TTEERRMM))

HHDDFFCC GGIILLTT LLOONNGG TTEERRMM PPLLAANN

PPRRUU IICCIICCII GGIILLTT FFUUNNDD((IINNVVEESSTTMMEENNTT))

BIRLA GILT PLUS REGULAR FUND

CALCULATION OF RETURNS ON MUTUAL FUND SCHEMES:

DSP ML G-Sec Fund – A

DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV

RETURN RETURN RETURN RETURN RETURN

(%) (%) (%) (%) (%)

1-Mar 0.26% 2-Apr -0.95% 3-May 0.13% 1-Jun 0.09% 2-Jul 0.64%

2-Mar -0.05% 3-Apr 0.08% 4-May -0.05% 4-Jun 0.04% 3-Jul 0.42%

5-Mar 0.02% 4-Apr -0.12% 7-May 0.14 5-Jun -0.10% 4-Jul 0.15%

6-Mar -0.01% 5-Apr 0.48% 8-May 0.20% 6-Jun -0.20% 5-Jul -0.03%

7-Mar 0.04% 9-Apr 0.33% 9-May 0.17% 7-Jun 0.16% 6-Jul 0.40%

8-Mar -0.21% 10-Apr -0.01% 10-May -0.23% 8-Jun -0.18% 9-Jul -0.05%

9-Mar 0.05% 11-Apr -0.04% 11-May -0.22% 11-Jun -0.50% 10-Jul 0.03%

12-Mar 0.35% 12-Apr -0.18% 14-May 0.13% 12-Jun 0.01% 11-Jul 0.06%

13-Mar -0.11% 13-Apr -0.05% 15-May 0.18% 13-Jun -0.10% 12-Jul 0.01%

14-Mar -0.06% 16-Apr 0.08% 16-May 0.08% 14-Jun 0.32% 13-Jul 0.19%

16-Mar -0.29% 17-Apr 0.20% 17-May -0.03% 15-Jun 0.29% 16-Jul 0.45%

19-Mar 0.06% 18-Apr 0.01% 18-May -0.16% 18-Jun 0.35% 17-Jul 0.21%

20-Mar -0.25% 19-Apr 0.07% 21-May 0.36% 19-Jun -0.10% 19-Jul 0.12%

21-Mar 0.21% 20-Apr -0.17% 22-May 0.02% 20-Jun -0.10% 20-Jul 0.37%

22-Mar 0.51% 23-Apr 0.60% 23-May -0.14% 21-Jun 0.00% 23-Jul -0.09%

23-Mar 0.04% 24-Apr 0.09% 24-May -0.08% 22-Jun -0.01% 24-Jul -0.19%

26-Mar -0.20% 25-Apr -0.36% 25-May 0.15% 25-Jun 0.30% 25-Jul 0.06%

28-Mar 0.12% 26-Apr -0.37% 28-May 0.40% 26-Jun -0.22% 26-Jul -0.15%

27-Apr -0.05% 29-May -0.09% 27-Jun -0.14% 27-Jul 0.30%

30-Apr 30-May -0.02% 28-Jun 0.25% 30-Jul -0.58%

31-May 0.18% 29-Jun 0.05% 31-Jul

TOTAL 0.48% TOTAL -0.36% TOTAL 14.98% TOTAL 0.21% TOTAL 2.32% Avg. RETURNS 0.03%

Avg. RETURNS -0.02%

Avg. RETURNS 0.71%

Avg. RETURNS 0.01%

Avg. RETURNS 0.12%

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59

Magnum Gilt Fund - Short Term

DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV

RETURN RETURN RETURN RETURN RETURN

(%) (%) (%) (%) (%)

1-Mar 0.00% 2-Apr 0.07% 3-May 0.07% 1-Jun 0.07% 2-Jul 0.07%

2-Mar 0.02% 3-Apr 0.02% 4-May 0.02% 4-Jun 0.09% 3-Jul 0.07%

5-Mar 0.06% 4-Apr 0.02% 7-May 0.07% 5-Jun 0.03% 4-Jul 0.10%

6-Mar 0.02% 5-Apr 0.02% 8-May 0.02% 6-Jun 0.03% 5-Jul 0.18%

7-Mar 0.02% 9-Apr 0.08% 9-May 0.02% 7-Jun 0.03% 6-Jul 0.16%

8-Mar 0.02% 10-Apr 0.02% 10-May 0.02% 8-Jun 0.03% 9-Jul 0.32%

9-Mar 0.02% 11-Apr 0.02% 11-May 0.02% 11-Jun 0.08% 10-Jul 0.02%

12-Mar 0.11% 12-Apr 0.02% 14-May 0.07% 12-Jun 0.03% 11-Jul 0.02%

13-Mar 0.02% 13-Apr 0.02% 15-May 0.02% 13-Jun 0.03% 12-Jul 0.02%

14-Mar 0.02% 16-Apr 0.07% 16-May 0.02% 14-Jun 0.03% 13-Jul 0.02%

16-Mar 0.04% 17-Apr 0.02% 17-May 0.04% 15-Jun 0.03% 16-Jul 0.07%

19-Mar 0.07% 18-Apr 0.02% 18-May 0.04% 18-Jun 0.08% 17-Jul 0.02%

20-Mar 0.02% 19-Apr 0.02% 21-May 0.09% 19-Jun 0.03% 19-Jul 0.05%

21-Mar 0.02% 20-Apr 0.03% 22-May 0.04% 20-Jun 0.03% 20-Jul 0.01%

22-Mar 0.02% 23-Apr 0.08% 23-May 0.04% 21-Jun 0.03% 23-Jul 0.18%

23-Mar 0.02% 24-Apr 0.02% 24-May 0.04% 22-Jun 0.03% 24-Jul 0.02%

26-Mar 0.07% 25-Apr 0.02% 25-May 0.04% 25-Jun 0.08% 25-Jul 0.02%

28-Mar 0.04% 26-Apr 0.02% 28-May 0.20% 26-Jun 0.03% 26-Jul 0.02%

27-Apr 0.02% 29-May 0.02% 27-Jun 0.03% 27-Jul 0.01%

30-Apr 0.07% 30-May 0.02% 28-Jun 0.09% 30-Jul 0.04%

31-May 0.03% 29-Jun 0.03% 31-Jul 0.01%

TOTAL 0.61% TOTAL 0.68% TOTAL 0.95% TOTAL 0.94% TOTAL 1.43% Avg. RETURNS 0.03%

Avg. RETURNS 0.03%

Avg. RETURNS 0.05%

Avg. RETURNS 0.04%

Avg. RETURNS 0.07%

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60

HDFC Gilt Fund Long Term Plan DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV

RETURN RETURN RETURN RETURN RETURN

(%) (%) (%) (%) (%)

1-Mar 0.26% 2-Apr 0.06% 3-May 0.13% 1-Jun 0.06% 2-Jul 0.19%

2-Mar -0.06% 3-Apr -0.90% 4-May -0.03% 4-Jun -0.01% 3-Jul 0.03%

5-Mar -0.02% 4-Apr 0.09% 7-May 0.10% 5-Jun -0.07% 4-Jul 0.16%

6-Mar 0.09% 5-Apr -0.18% 8-May 0.16% 6-Jun -0.21% 5-Jul 0.17%

7-Mar 0.08% 9-Apr 0.37% 9-May 0.12% 7-Jun 0.16% 6-Jul -0.09%

8-Mar -0.33% 10-Apr 0.39% 10-May -0.23% 8-Jun -0.25% 9-Jul 0.29%

9-Mar -0.02% 11-Apr -0.14% 11-May 0.00% 11-Jun -0.92% 10-Jul -0.07%

12-Mar 0.34% 12-Apr -0.11% 14-May 0.15% 12-Jun 0.03% 11-Jul -0.03%

13-Mar -0.12% 13-Apr -0.10% 15-May 0.15% 13-Jun -0.17% 12-Jul 0.04%

14-Mar -0.06% 16-Apr -0.06% 16-May 0.08% 14-Jun 0.58% 13-Jul -0.02%

16-Mar -0.30% 17-Apr 0.13% 17-May -0.03% 15-Jun 0.34% 16-Jul 0.06%

19-Mar 0.06% 18-Apr 0.17% 18-May -0.06% 18-Jun 0.48% 17-Jul 0.12%

20-Mar -0.20% 19-Apr 0.08% 21-May 0.23% 19-Jun -0.10% 19-Jul 0.06%

21-Mar 0.10% 20-Apr 0.04% 22-May -0.05% 20-Jun -0.08% 20-Jul 0.12%

22-Mar 0.53% 23-Apr -0.08% 23-May -0.05% 21-Jun 0.06% 23-Jul 0.59%

23-Mar 0.04% 24-Apr 0.55% 24-May -0.02% 22-Jun 0.04% 24-Jul -0.20%

26-Mar -0.23% 25-Apr 0.03% 25-May 0.18% 25-Jun 0.07% 25-Jul -0.26%

28-Mar 0.13% 26-Apr -0.29% 28-May 0.38% 26-Jun -0.06% 26-Jul 0.12%

27-Apr -0.29% 29-May -0.06% 27-Jun -0.09% 27-Jul -0.26%

30-Apr -0.01% 30-May -0.04% 28-Jun 0.16% 30-Jul 0.30%

31-May 0.16% 29-Jun 0.02% 31-Jul -0.51%

TOTAL 0.29% TOTAL -0.25% TOTAL 1.27% TOTAL 0.04% TOTAL 0.81% Avg. RETURNS 0.02%

Avg. RETURNS -0.01%

Avg. RETURNS 0.06%

Avg. RETURNS 0.00%

Avg. RETURNS 0.04%

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61

Pru ICICI Gilt Fund (Investment) –

DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV

RETURN RETURN RETURN RETURN RETURN

(%) (%) (%) (%) (%)

1-Mar 0.04% 1-Mar 0.04% 3-May 0.09% 1-Jun -0.04% 2-Jul 0.31%

2-Mar -0.04% 2-Mar -0.09% 4-May -0.05% 4-Jun -0.05% 3-Jul 0.34%

5-Mar 0.02% 5-Mar 0.01% 7-May -0.05% 5-Jun -0.02% 4-Jul 0.11%

6-Mar 0.00% 6-Mar 0.22% 8-May 0.09% 6-Jun 0.01% 5-Jul 0.09%

7-Mar 0.02% 7-Mar 0.07% 9-May 0.02% 7-Jun 0.00% 6-Jul 0.47%

8-Mar 0.00% 8-Mar 0.01% 10-May -0.09% 8-Jun -0.09% 9-Jul 0.40%

9-Mar 0.03% 9-Mar 0.02% 11-May 0.01% 11-Jun 0.14% 10-Jul 0.04%

12-Mar 0.03% 12-Mar -0.04% 14-May 0.17% 12-Jun 0.10% 11-Jul 0.07%

13-Mar 0.00% 13-Mar 0.07% 15-May 0.06% 13-Jun -0.05% 12-Jul -0.08%

14-Mar -0.02% 14-Mar 0.06% 16-May 0.05% 14-Jun -0.05% 13-Jul 0.17%

16-Mar 0.05% 16-Mar 0.00% 17-May -0.04% 15-Jun 0.10% 16-Jul 0.34%

19-Mar 0.07% 19-Mar 0.08% 18-May 0.00% 18-Jun 0.24% 17-Jul 0.15%

20-Mar 0.08% 20-Mar 0.04% 21-May 0.08% 19-Jun -0.05% 19-Jul 0.14%

21-Mar 0.17% 21-Mar 0.08% 22-May -0.01% 20-Jun 0.01% 20-Jul 0.46%

22-Mar 0.03% 22-Mar 0.27% 23-May 0.05% 21-Jun 0.02% 23-Jul -0.17%

23-Mar -0.05% 23-Mar 0.07% 24-May -0.05% 22-Jun -0.01% 24-Jul -0.27%

26-Mar 0.07% 26-Mar -0.17% 25-May 0.11% 25-Jun -0.04% 25-Jul 0.14%

28-Mar 28-Mar -0.07% 28-May 0.15% 26-Jun 0.06% 26-Jul -0.28%

30-Apr -0.03% 29-May -0.05% 27-Jun -0.12% 27-Jul 0.53%

30-May -0.06% 28-Jun 0.13% 30-Jul -0.49%

31-May 0.10% 29-Jun -0.02% 31-Jul

TOTAL 0.50% TOTAL 0.64% TOTAL 0.58% TOTAL 0.27% TOTAL 2.47% Avg. RETURNS 0.03%

Avg. RETURNS 0.03%

Avg. RETURNS 0.03%

Avg. RETURNS 0.01%

Avg. RETURNS 0.12%

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62

Birla Gilt Plus - Regular

DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV

RETURN RETURN RETURN RETURN RETURN

(%) (%) (%) (%) (%)

1-Mar 0.04% 2-Apr 0.00% 3-May 0.08% 1-Jun 0.00% 2-Jul 0.29%

2-Mar -0.03% 3-Apr -0.01% 4-May 0.01% 4-Jun -0.04% 3-Jul 0.07%

5-Mar -0.03% 4-Apr 0.02% 7-May 0.06% 5-Jun 0.04% 4-Jul 0.47%

6-Mar 0.10% 5-Apr 0.01% 8-May 0.05% 6-Jun -0.19% 5-Jul 0.39%

7-Mar 0.01% 9-Apr 0.11% 9-May 0.03% 7-Jun 0.12% 6-Jul 0.03%

8-Mar -0.15% 10-Apr 0.03% 10-May -0.03% 8-Jun -0.19% 9-Jul 0.54%

9-Mar -0.01% 11-Apr -0.03% 11-May -0.01% 11-Jun -0.09% 10-Jul -0.03%

12-Mar 0.08% 12-Apr -0.02% 14-May 0.12% 12-Jun -0.01% 11-Jul -0.04%

13-Mar -0.02% 13-Apr 0.02% 15-May 0.15% 13-Jun -0.03% 12-Jul 0.10%

14-Mar 0.02% 16-Apr 0.03% 16-May 0.07% 14-Jun 0.04% 13-Jul -0.08%

16-Mar 0.00% 17-Apr 0.07% 17-May -0.05% 15-Jun 0.05% 16-Jul 0.15%

19-Mar 0.05% 18-Apr 0.02% 18-May -0.10% 18-Jun 0.12% 17-Jul 0.33%

20-Mar -0.05% 19-Apr 0.09% 21-May 0.23% 19-Jun -0.05% 19-Jul 0.05%

21-Mar 0.03% 20-Apr 0.03% 22-May -0.04% 20-Jun -0.02% 20-Jul 0.12%

22-Mar 0.13% 23-Apr 0.04% 23-May 0.00% 21-Jun 0.03% 23-Jul 0.51%

23-Mar 0.02% 24-Apr 0.75% 24-May -0.02% 22-Jun 0.00% 24-Jul -0.13%

26-Mar 0.02% 25-Apr 0.08% 25-May 0.05% 25-Jun 0.12% 25-Jul -0.11%

28-Mar 0.04% 26-Apr -0.26% 28-May 0.07% 26-Jun -0.10% 26-Jul 0.16%

30-Mar 0.03% 27-Apr -0.17% 29-May -0.03% 27-Jun -0.10% 27-Jul -0.13%

30-Apr -0.04% 30-May -0.01% 28-Jun 0.22% 30-Jul 0.17%

31-May 0.04% 29-Jun 0.01% 31-Jul -0.04%

TOTAL 0.28% TOTAL 0.77% TOTAL 0.67% TOTAL -0.07% TOTAL 2.82% Avg. RETURNS 0.01%

Avg. RETURNS 0.04%

Avg. RETURNS 0.03%

Avg. RETURNS 0.00%

Avg. RETURNS 0.13%

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63

CALCULATION OF RETURNS ON MUTUAL FUND SCHEMES:

Month sensex returns DSP ML

(Sm-mean)

(Bm-mean)

(Sm-Sm)*(Tm-Tm)

(Tm-mean)*(tm-mean)

March -0.14 0.03 -0.132 -0.14 0.01848 0.0196 April 0.14 -0.02 0.148 -0.19 -0.02812 0.0361 May 0.02 0.71 0.028 0.54 0.01512 0.2916 June -0.17 0.01 -0.162 -0.16 0.02592 0.0256 July 0.11 0.12 0.118 -0.05 -0.0059 0.0025 TOTAL -0.04 0.85 0.0255 MEAN -0.008 0.17

BETA 0.0255/0.08028 ALPHA 0.1725

0.317638266 Standard Deviation 0.057

Month sensex returns Magnum (Sm-mean) (Bm-mean) (Sm-Sm)*(Tm-Tm) (Tm-mean)*(tm-mean)

March -0.14 0.03 -0.132 -0.014 0.001848 0.000196 April 0.14 0.03 0.148 -0.014 -0.002072 0.000196 May 0.02 0.05 0.028 0.006 0.000168 0.0000360 June -0.17 0.04 -0.162 -0.004 0.000648 0.000016 July 0.11 0.07 0.118 0.026 0.003068 0.000676 TOTAL -0.04 0.22 0.000592 MEAN -0.008 0.044

BETA 0.00059/ 0.08028 ALPHA 0.044

0.007349278 Standard Deviation 0.0027

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64

Month sensex returns HDFC

(Sm-mean)

(Bm-mean)

(Sm-Sm)*(Tm-Tm)

(Tm-mean)*(tm-mean)

March -0.14 0.02 -0.132 -0.002 0.000264 0.000004 April 0.14 -0.01 0.148 -0.032 -0.004736 0.001024 May 0.02 0.06 0.028 0.038 0.001064 0.001444 June -0.17 0 -0.162 -0.022 0.003564 0.000484 July 0.11 0.04 0.118 0.018 0.002124 0.000324 TOTAL -0.04 0.11 0.00228 MEAN -0.008 0.022

BETA 0.00228/ 0.08028 ALPHA 0.022

0.028400598 Standard Deviation 0.00057

Month sensex returns

Pru ICICI

(Sm-mean)

(Bm-mean)

(Sm-Sm)*(Tm-Tm)

(Tm-mean)*(tm-mean)

March -0.14 0.03 -0.132 -0.014 0.001848 0.000196 April 0.14 0.03 0.148 -0.014 -0.002072 0.000196 May 0.02 0.03 0.028 -0.014 -0.000392 0.000196 June -0.17 0.01 -0.162 -0.034 0.005508 0.001156 July 0.11 0.12 0.118 0.076 0.008968 0.005776 TOTAL -0.04 0.22 0.01386 MEAN -0.008 0.044

BETA 0.01386/ 0.08028 ALPHA 0.045

0.17264574 Standard Deviation 0.0024

Month sensex returns Birla (Sm-mean)

(Bm-mean) (Sm-Sm)*(Tm-Tm) (Tm-mean)*(tm-mean)

March -0.14 0.01 -0.132 -0.032 0.004224 0.001024 April 0.14 0.04 0.148 -0.002 -0.000296 0.000004 May 0.02 0.03 0.028 -0.012 -0.000336 0.000144

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65

June -0.17 0 -0.162 -0.042 0.006804 0.001764 July 0.11 0.13 0.118 0.088 0.010384 0.007744 TOTAL -0.04 0.21 0.02078 MEAN -0.008 0.042

BETA 0.02078/ 0.08028 ALPHA 0.044 0.25884405 Standard Deviation 0.0032

SCHEMES BETA ALPHA S.D. DSPML G-SEC FUND 0.318 0.173 0.057 MAGNUM GILT FUND 0.007 0.044 0.0027 HDFC GILT FUND 0.028 0.022 0.00057 PRU ICICI GILT FUND 0.173 0.045 0.0024 BIRLA GILT PLUS 0.259 0.044 0.0032

II NNTTEERRPPRREETTAATTII OONN

BBEETTAA ::

BBeettaa ooff DDSSPP MMLL GG--SSeecc FFuunndd iiss tthhee hhiigghheesstt,, wwhhiicchh iinnddiiccaattee tthhaatt vvoollaattii ll ii ttyy iinn tthhiiss

ssppeeccii ff iicc sscchheemmeess iiss mmoorree aass ccoommppaarreedd ttoo ootthheerr ffuunndd.. BBuutt aatt tthhee ssaammee ttiimmee MMaaggnnuumm GGii ll tt

FFuunndd aanndd HHDDFFCC GGii ll tt FFuunndd hhaass sshhoowwnn lleessss rriisskkyy iinnvveessttmmeennttss..

AALL PPHHAA::

RReettuurrnnss oonn HHDDFFCC GGii ll tt FFuunndd iiss lleessss bbuutt ii tt hhaass sshhoowwnn vvoollaattii ll ii ttyy aallssoo..BBuutt DDSSPP MMLL

GG--SSeecc FFuunndd hhaass ttaakkeenn rriisskk bbuutt aatt tthhee ssaammee ttiimmee ii tt hhaass ggeenneerraatteedd ppoossii ttiivvee rreettuurrnnss..

SSTTAANNDDAARRDD DDEEVVII AATTII OONN::

DDSSPP MMLL GG--SSeecc hhaass sshhoowwnn mmoorree ddeevviiaattiioonn aass ccoommppaarreedd ttoo ootthheerr GG--sseecc ffuunnddss..

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66

CALCULATION OF RETURNS ON MUTUAL FUND SCHEMES:

HDFC LIQUID FUND PRU ICICI LIQUID MAGNUM INSTACASH TEMPLETON INDIA LIQUID PLUS JM BASIC FUND

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HDFC Liquid Fund HDFC Liquid Fund

DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV

RETURN

RETURN

RETURN

RETURN

RETURN

(%) (%) (%) (%) (%)

2-Apr 0.13% 1-Mar 0.00% 2-May 0.07% 1-Jun 0.07% 2-Jul 0.07%

3-Apr 0.03% 2-Mar 0.02% 3-May 0.02% 3-Jun 0.03% 3-Jul 0.02%

4-Apr 0.03% 4-Mar 0.04% 4-May 0.02% 4-Jun 0.01% 4-Jul 0.02%

5-Apr 0.03% 5-Mar 0.02% 6-May 0.05% 5-Jun 0.01% 5-Jul 0.02%

6-Apr 0.02% 6-Mar 0.02% 7-May 0.02% 6-Jun 0.01% 6-Jul 0.02%

8-Apr 0.05% 7-Mar 0.02% 8-May 0.02% 7-Jun 0.01% 8-Jul 0.04%

9-Apr 0.02% 8-Mar 0.02% 9-May 0.02% 8-Jun 0.01% 9-Jul 0.02%

10-Apr 0.02% 9-Mar 0.02% 10-May 0.02% 11-Jun 0.03% 10-Jul 0.02%

11-Apr 0.02% 11-Mar 0.04% 11-May 0.02% 12-Jun 0.01% 11-Jul 0.02%

12-Apr 0.02% 12-Mar 0.02% 13-May 0.05% 13-Jun 0.02% 12-Jul 0.02%

13-Apr 0.02% 13-Mar 0.02% 14-May 0.03% 14-Jun 0.02% 13-Jul 0.02%

15-Apr 0.05% 14-Mar 0.02% 15-May 0.02% 15-Jun 0.02% 15-Jul 0.04%

16-Apr 0.02% 16-Mar 0.05% 16-May 0.02% 17-Apr 0.02% 16-Jul 0.02%

17-Apr 0.02% 19-Mar 0.07% 17-May 0.03% 18-Jun 0.03% 17-Jul 0.02%

18-Apr 0.03% 20-Mar 0.03% 18-May 0.02% 19-Jun 0.02% 19-Jul 0.04%

19-Apr 0.02% 21-Mar 0.03% 20-May 0.05% 20-Jun 0.02% 20-Jul 0.02%

20-Apr 0.02% 22-Mar 0.03% 21-May 0.02% 21-Jun 0.02% 22-Jul 0.03%

22-Apr 0.05% 23-Mar 0.03% 22-May 0.02% 22-Jun 0.01% 23-Jul 0.02%

23-Apr 0.02% 25-Mar 0.05% 23-May 0.02% 24-Apr 0.02% 24-Jul 0.02%

24-Apr 0.02% 26-Mar 0.03% 24-May 0.02% 25-Jun 0.04% 25-Jul 0.02%

25-Apr 0.03% 27-Mar 0.03% 25-May 0.02% 26-Jun 0.02% 26-Jul 0.02%

26-Apr 0.02% 28-Mar 0.03% 27-May 0.05% 27-Jun 0.02% 27-Jul 0.02%

27-Apr 0.02% 28-May 0.02% 28-Jun 0.02% 29-Jul 0.03%

29-Apr 0.05% 29-May 0.02% 29-Jun 0.02% 30-Jul 0.02%

30-Apr 0.03% 30-May 0.02%

31-May 0.02%

TOTAL 0.79% TOTAL 0.64% TOTAL 0.71% TOTAL 0.54% TOTAL 0.61% Avg. RETURNS 0.03%

Avg. RETURNS 0.03%

Avg. RETURNS 0.03%

Avg. RETURNS 0.02%

Avg. RETURNS 0.03%

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68

Pru ICICI Liquid DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV

RETURN RETURN RETURN RETURN RETURN

(%) (%) (%) (%) (%)

1-Mar 0.05% 2-Apr 0.16% 2-May 0.05% 1-Jun 0.05% 2-Jul 0.11%

2-Mar 0.02% 3-Apr 0.03% 3-May 0.02% 3-Jun 0.03% 3-Jul 0.02%

4-Mar 0.04% 4-Apr 0.03% 4-May 0.02% 4-Jun 0.02% 4-Jul 0.02%

5-Mar 0.02% 5-Apr 0.03% 6-May 0.05% 5-Jun 0.02% 5-Jul 0.02%

6-Mar 0.02% 6-Apr 0.03% 7-May 0.02% 6-Jun 0.02% 6-Jul 0.02%

7-Mar 0.02% 8-Apr 0.05% 8-May 0.02% 7-Jun 0.02% 8-Jul 0.04%

8-Mar 0.02% 9-Apr 0.02% 9-May 0.02% 8-Jun 0.01% 9-Jul 0.02%

9-Mar 0.02% 10-Apr 0.02% 10-May 0.02% 10-Jun 0.03% 10-Jul 0.02%

11-Mar 0.04% 11-Apr 0.02% 11-May 0.02% 11-Jun 0.01% 11-Jul 0.02%

12-Mar 0.02% 12-Apr 0.02% 13-May 0.05% 12-Jun 0.01% 12-Jul 0.02%

13-Mar 0.02% 13-Apr 0.02% 14-May 0.02% 13-Jun 0.01% 13-Jul 0.02%

14-Mar 0.02% 15-Apr 0.05% 15-May 0.02% 14-Jun 0.01% 15-Jul 0.03%

16-Mar 0.05% 16-Apr 0.02% 16-May 0.02% 15-Jun 0.01% 16-Jul 0.02%

19-Mar 0.07% 17-Apr 0.03% 17-May 0.02% 17-Apr 0.04% 17-Jul 0.02%

20-Mar 0.03% 18-Apr 0.03% 18-May 0.02% 18-Jun 0.02% 19-Jul 0.04%

21-Mar 0.03% 19-Apr 0.03% 20-May 0.05% 19-Jun 0.02% 20-Jul 0.02%

22-Mar 0.03% 20-Apr 0.03% 21-May 0.02% 20-Jun 0.02% 22-Jul 0.04%

23-Mar 0.03% 22-Apr 0.05% 22-May 0.02% 21-Jun 0.02% 23-Jul 0.02%

25-Mar 0.05% 23-Apr 0.03% 23-May 0.02% 22-Jun 0.02% 24-Jul 0.02%

26-Mar 0.03% 24-Apr 0.03% 24-May 0.02% 24-Apr 4.00% 25-Jul 0.02%

27-Mar 0.03% 25-Apr 0.02% 25-May 0.02% 25-Jun 0.02% 26-Jul 0.02%

28-Mar 0.03% 26-Apr 0.03% 27-May 0.05% 26-Jun 0.02% 27-Jul 0.02%

27-Apr 0.03% 28-May 0.02% 27-Jun 0.02% 29-Jul 0.03%

29-Apr 0.05% 29-May 0.02% 28-Jun 0.03% 30-Jul 0.02%

30-Apr 0.03% 30-May 0.02% 29-Jun 0.03% 0.01%

31-May 0.02%

TOTAL 0.69% TOTAL 0.89% TOTAL 0.67% TOTAL 4.51% TOTAL 0.66% Avg. RETURNS 0.03%

Avg. RETURNS 0.04%

Avg. RETURNS 0.03%

Avg. RETURNS 0.18%

Avg. RETURNS 0.03%

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Magnum InstaCash DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV

RETURN RETURN RETURN RETURN RETURN

(%) (%) (%) (%) (%)

1-Mar 0.0599 2-Apr 0.06% 0.06% 1-May 1-Jun 0.00% 1-Jul 0.06%

2-Mar 0.0002 3-Apr 0.02% 0.02% 2-May 2-Jun 0.02% 2-Jul 0.02%

3-Mar 0.0002 4-Apr 0.03% 0.02% 3-May 3-Jun 0.02% 3-Jul 0.02%

4-Mar 0.0002 5-Apr 0.02% 0.02% 4-May 4-Jun 0.02% 4-Jul 0.02%

5-Mar 0.0002 6-Apr 0.02% 0.02% 5-May 5-Jun 0.02% 5-Jul 0.02%

6-Mar 0.0002 7-Apr 0.02% 0.02% 6-May 6-Jun 0.02% 6-Jul 0.02%

7-Mar 0.0002 8-Apr 0.02% 0.02% 7-May 7-Jun 0.02% 7-Jul 0.02%

8-Mar 0.0002 9-Apr 0.02% 0.02% 8-May 8-Jun 0.02% 8-Jul 0.02%

9-Mar 0.0002 10-Apr 0.02% 0.02% 9-May 9-Jun 0.02% 9-Jul 0.02%

10-Mar 0.0002 11-Apr 0.02% 0.02% 10-May 10-Jun 0.02% 10-Jul 0.01%

11-Mar 0.0002 12-Apr 0.02% 0.02% 11-May 11-Jun 0.02% 11-Jul 0.01%

12-Mar 0.0002 13-Apr 0.02% 0.02% 12-May 12-Jun 0.02% 12-Jul 0.02%

13-Mar 0.0002 14-Apr 0.02% 0.02% 13-May 13-Jun 0.02% 13-Jul 0.01%

14-Mar 0.0002 15-Apr 0.02% 0.02% 14-May 14-Jun 0.01% 14-Jul 0.01%

16-Mar 0.0005 16-Apr 0.02% 0.02% 15-May 15-Jun 0.01% 15-Jul 0.01%

17-Mar 0.0003 17-Apr 0.02% 0.02% 16-May 16-Jun 0.01% 16-Jul 0.02%

18-Mar 0.0002 18-Apr 0.02% 0.02% 17-May 17-Jun 0.01% 17-Jul 0.02%

19-Mar 0.0003 19-Apr 0.02% 0.02% 18-May 18-Jun 0.02% 19-Jul 0.03%

20-Mar 0.0003 20-Apr 0.02% 0.02% 19-May 19-Jun 0.02% 20-Jul 0.01%

21-Mar 0.0003 21-Apr 0.02% 0.02% 20-May 20-Jun 0.02% 22-Jul 0.02%

22-Mar 0.0002 22-Apr 0.03% 0.02% 21-May 21-Jun 0.02% 23-Jul 0.01%

23-Mar 0.0003 23-Apr 0.02% 0.02% 22-May 22-Jun 0.02% 24-Jul 0.01%

24Mar 0.0003 24-Apr 0.02% 0.02% 23-May 23-Jun 0.02% 25-Jul 0.01%

25-Mar 0.0003 25-Apr 0.02% 0.02% 24-May 24-Jun 0.02% 26-Jul 0.01%

26-Mar 0.0003 26-Apr 0.02% 0.02% 25-May 25-Jun 0.02% 27-Jul 0.01%

27-Mar 0.0003 27-Apr 0.02% 0.02% 26-May 26-Jun 0.02% 28-Jul 0.01%

28-Mar 0.0003 28-Apr 0.02% 0.02% 27-May 27-Jun 0.02% 29-Jul 0.01%

31-Mar 0.001 29-Apr 0.02% 0.02% 28-May 28-Jun 0.02% 30-Jul 0.01%

30-Apr 0.02% 0.02% 29-May 29-Jun 0.02% 31-Jul 0.01%

0.02% 30-May

0.02% 31-May

TOTAL 0.0674 TOTAL 0.62% TOTAL 0.66% TOTAL 0.52% TOTAL 0.48% Avg. RETURNS 0.002407

Avg. RETURNS

0.0002211

Avg. RETURNS

0.0002129

Avg. RETURNS

0.0001857

Avg. RETURNS

0.0001648

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70

Templeton India Liquid Plus DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV

RETURN RETURN RETURN RETURN

RETURN

(%) (%) (%) (%) (%)

1-Mar 0.00% 2-Apr 0.073 2-May 0.073 1-Jun 0.073 2-Jul 0.00% 2-Mar 0.02% 3-Apr 0.00% 3-May 0.02% 3-Jun 0.04% 3-Jul 0.02% 4-Mar 0.04% 4-Apr 0.02% 4-May 0.02% 4-Jun 0.02% 4-Jul 0.02% 5-Mar 0.02% 5-Apr 0.02% 6-May 0.04% 5-Jun 0.02% 5-Jul 0.06% 6-Mar 0.02% 6-Apr 0.02% 7-May 0.02% 6-Jun 0.02% 6-Jul 0.01% 7-Mar 0.02% 8-Apr 0.04% 8-May 0.02% 7-Jun 0.02% 8-Jul 0.03% 8-Mar 0.02% 9-Apr 0.02% 9-May 0.02% 8-Jun 0.02% 9-Jul 0.01% 9-Mar 0.02% 10-Apr 0.02% 10-May 0.03% 10-Jun 0.03% 10-Jul 0.01%

11-Mar 0.04% 11-Apr 0.02% 11-May 0.02% 11-Jun 0.01% 11-Jul 0.01% 12-Mar 0.02% 12-Apr 0.02% 13-May 0.04% 12-Jun 0.01% 12-Jul 0.01% 13-Mar 0.02% 13-Apr 0.02% 14-May 0.02% 13-Jun 0.01% 13-Jul 0.01% 14-Mar 0.02% 15-Apr 0.04% 15-May 0.02% 14-Jun 0.02% 15-Jul 0.02% 16-Mar 0.04% 16-Apr 0.02% 16-May 0.02% 15-Jun 0.02% 16-Jul 0.01% 19-Mar 0.06% 17-Apr 0.03% 17-May 0.02% 17-Jun 0.03% 17-Jul 0.01% 20-Mar 0.02% 18-Apr 0.03% 18-May 0.02% 18-Jun 0.02% 19-Jul 0.03% 21-Mar 0.04% 19-Apr 0.02% 20-May 0.04% 19-Jun 0.02% 20-Jul 0.01% 22-Mar 0.03% 20-Apr 0.03% 21-May 0.02% 20-Jun 0.01% 22-Jul 0.03% 23-Mar 0.01% 22-Apr 0.04% 22-May 0.02% 21-Jun 0.07% 23-Jul 0.01% 25-Mar 0.06% 23-Apr 0.02% 23-May 0.02% 22-Jun 0.01% 24-Jul 0.01% 26-Mar 0.02% 24-Apr 0.02% 24-May 0.02% 24-Jun 0.02% 25-Jul 0.01% 27-Mar 0.02% 25-Apr 0.02% 25-May 0.02% 25-Jun 0.01% 26-Jul 0.01% 28-Mar 0.01% 26-Apr 0.02% 27-May 0.04% 26-Jun 0.03% 27-Jul 0.01%

27-Apr 0.02% 28-May 0.02% 27-Jun 0.02% 29-Jul 0.03% 29-Apr 0.04% 29-May 0.03% 28-Jun 0.02% 30-Jul 0.01% 30-Apr 0.02% 30-May 0.02% 29-Jun 0.02% 31-Jul 0.01% 31-May 0.02%

TOTAL 0.49% TOTAL 0.0057 TOTAL 0.079 TOTAL 0.0782 TOTAL 0.40%

Avg. RETURNS 0.03%

Avg. RETURNS

0.00315

Avg. RETURNS

0.00304

Avg. RETURNS

0.00313

Avg. RETURNS 0.0002

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71

DATE NAV DATE NAV DATE NAV DATE NAV DATE NAV

RETURN RETURN RETURN RETURN RETURN

(%) (%) (%) (%) (%)

1-Mar 0.70% 2-Apr -2.34% 2-May 1.21 1-Jun 0.56% 2-Jul 1.15%

2-Mar -1.61% 3-Apr 1.45% 3-May -0.53% 3-Jun -1.57% 3-Jul 2.05%

4-Mar -4.31% 4-Apr 1.43% 4-May 0.10% 4-Jun 0.34% 4-Jul 0.41%

5-Mar 0.06% 5-Apr 1.08% 6-May -1.15% 5-Jun -0.98% 5-Jul -0.21%

6-Mar -0.74% 6-Apr 2.25% 7-May 0.05% 6-Jun 0.23% 6-Jul 1.81%

7-Mar 2.81% 8-Apr 0.26% 8-May 0.44% 7-Jun -0.73% 8-Jul 1.29%

8-Mar -0.11% 9-Apr 1.73% 9-May 1.11% 8-Jun 0.20% 9-Jul -0.40%

9-Mar 0.73% 10-Apr -0.10% 10-May 1.82% 10-Jun -0.26% 10-Jul 1.11%

11-Mar 1.67% 12-Apr 1.18% 11-May -0.89% 11-Jun -0.46% 11-Jul 1.82%

12-Mar -2.46% 13-Apr 1.78% 13-May 1.85% 13-Jun 1.07% 12-Jul 1.06%

13-Mar -0.73% 16-Apr -0.75% 14-May 0.33% 14-Jun 0.40% 13-Jul -0.58%

14-Mar 1.18% 17-Apr 0.70% 15-May 0.65% 17-Jun 0.33% 15-Jul -0.86%

16-Mar -0.11% 18-Apr -0.90% 16-May 0.78% 18-Jun 0.78% 16-Jul 0.97%

19-Mar 0.84% 20-Apr 1.06% 17-May 0.64% 19-Jun 2.07% 17-Jul 0.18%

20-Mar 2.10% 22-Apr 0.15% 18-May -0.68% 20-Jun 1.84% 19-Jul 1.44%

21-Mar 0.70% 23-Apr 1.55% 20-May -0.59% 22-Jun -0.51% 20-Jul 0.29%

22-Mar -0.11% 24-Apr 1.18% 21-May 0.74% 24-Jun 0.10% 22-Jul -1.26%

23-Mar -1.08% 25-Apr -0.24% 22-May 1.87% 25-Jun 0.36% 23-Jul 0.02%

25-Mar 26-Apr -1.07% 23-May 1.03% 26-Jun -0.77% 24-Jul -2.94%

26-Mar 27-Apr 1.67% 24-May 1.64% 27-Jun 1.12% 25-Jul -0.04%

27-Mar 25-May 0.65% 28-Jun 1.57% 26-Jul 2.43%

28-Mar

TOTAL -0.47 TOTAL 12.07% TOTAL 1.31% TOTAL 5.69% TOTAL 9.74% Avg. RETURNS -0.02611

Avg. RETURNS 0.006035

Avg. RETURNS 0.06231

Avg. RETURNS 0.0027095

Avg. RETURNS 0.0046381

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LIQUID FUNDS

Month sensex returns

HDFC Liq

(Sm-mean)

(Bm-mean)

(Sm-Sm)*(Tm-Tm)

(Tm-mean)*(tm-mean)

March -0.14 0.03 -0.132 0.002 -0.000264 0.000004 April 0.14 0.03 0.148 0.002 0.000296 0.000004 May 0.02 0.03 0.028 0.002 0.000056 0.000004 June -0.17 0.02 -0.162 -0.008 0.001296 0.000064 July 0.11 0.03 0.118 0.002 0.000236 0.000004 TOTAL -0.04 0.14 0.00162 MEAN -0.008 0.028

BETA 0.00162/ 0.08028 ALPHA 0.028 0.02018 Standard Deviation 0.000027

Month sensex returns

Pru ICICI Liquid (Sm-mean) (Bm-mean) (Sm-Sm)*(Tm-Tm) (Tm-mean)*(tm-mean)

March -0.14 0.03 -0.132 -0.032 0.004224 0.001024 April 0.14 0.04 0.148 -0.022 -0.003256 0.000484 May 0.02 0.03 0.028 -0.032 -0.000896 0.001024 June -0.17 0.18 -0.162 0.118 -0.019116 0.013924 July 0.11 0.03 0.118 -0.032 -0.003776 0.001024 TOTAL -0.04 0.31 -0.02282 0.005834117 MEAN -0.008 0.062 BETA -0.02282/0.08028 ALPHA 0.059725959 -0.2843 Standard Deviation 0.0058

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Month sensex returns magnum (Sm-mean) (Bm-mean)

(Sm-Sm)* (Tm-Tm) (Tm-mean)*(tm-mean)

March -0.14 0.0024 -0.132 0.002032 -0.000268224 0.00000413 April 0.14 0.0002 0.148 -0.000168 -0.000024864 0.00000003 May 0.02 0.00021 0.028 -0.000158 -0.000004424 0.00000002 June -0.17 0.00018 -0.162 -0.000188 0.000030456 0.00000004 July 0.11 0.0002 0.118 -0.000168 -0.000019824 0.00000003 TOTAL -0.04 0.00319 -0.00028688 0.00000183 MEAN -0.008 0.000638

BETA -0.00029/ 0.08028 ALPHA 0.000609412

-0.00361 Standard Deviation 0.00000183

Month sensex returns

Templeton India Liquid Plus (Sm-mean) (Bm-mean)

(Sm-Sm)*(Tm-Tm) (Tm-mean)*(tm-mean)

March -0.14 0.03 -0.132 0.022168 -0.002926176 0.00049142 April 0.14 0.003 0.148 -0.004832 -0.000715136 0.000023348 May 0.02 0.003 0.028 -0.004832 -0.000135296 0.000023348 June -0.17 0.003 -0.162 -0.004832 0.000782784 0.000023348 July 0.11 0.00016 0.118 -0.007672 -0.000905296 0.000058860 TOTAL -0.04 0.03916 -0.00389912 MEAN -0.008 0.007832

BETA -0.0039/ 0.08028 ALPHA 0.007443448

-0.04858 Standard Deviation 0.00021

Month sensex returns

JM Basic Fund (Sm-mean) (Bm-mean)

(Sm-Sm)*(Tm-Tm) (Tm-mean)*(tm-mean)

March -0.14 -0.00026 -0.132 -0.0153308 0.002023666 0.000235033 April 0.14 0.006 0.148 -0.0090698 -0.00134233 8.22613E-05 May 0.02 0.06231 0.028 0.0472402 0.001322726 0.002231636 June -0.17 0.0027 -0.162 -0.0123698 0.002003908 0.000153012 July 0.11 0.0046 0.118 -0.0104698 -0.001235436 0.000109617 TOTAL -0.04 0.075349 0.002772532 0.000934968 MEAN -0.008 0.01507

BETA 0.00277/ 0.08028 ALPHA 0.015346086

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0.0345 Standard Deviation 0.00093

SCHEMES BETA ALPHA S.D. HDFC Liq 0.02018 0.028 0.000027 Pru ICICI -0.284 0.06 0.01 Magnum -0.0036 0.0006 0

Templeton India -0.049 0.007 0.00021

JM Basic Fund 0.0345 0.015 0.0093

II NNTTEERRPPRREETTAATTII OONN::

BBEETTAA

IInn LLiiqquuiidd mmoosstt ooff tthhee sscchheemmeess hhaass sshhoowwnn mmoorree vvoollaattii ll ii ttyy eexxcceepptt HHDDFFCC LLiiqquuiidd

FFuunndd aanndd JJMM BBaassiicc FFuunndd.. AAll ll ootthheerr ffuunnddss hhaass bbeeeenn vvoollaattii llee aass ccoommppaarreedd ttoo SSEENNSSEEXX..

AALLPPHHAA

AAss tthhee nnaattuurree ooff LLiiqquuiidd FFuunndd iiss ttoo pprroovviiddee eeaassyy ll iiqquuiiddyy ttoo iinnvveessttoorrss,, tthheerreeffoorree tthhee rreettuurrnn aacccceepptteedd ff rroomm tthhiiss ttyyppee ooff ffuunndd iiss aallssoo lleessss.. AAmmoonngg tthheessee ffuunnddss MMaaggnnuumm Instacash has given less returns as compared to other funds. STANDARD DEVIATION Among the above mentioned schemes Pru ICICI has shown more volatility in its portfolio. But Magnum Insta cash has shown no deviation in its portfolio. Therefore for short term investors HDFC Liquid Fund is suitable as it has given returns and at the same time in has not shown much volatility as compared to SENSEX returns. RECOMMENDATIONS

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Remember to pack the following investment gems in your luggage as you set

forth on your financial journey. These guideposts reinforce and expand the key points

covered throughout Building Your Mutual Fund Portfolio.

• Diversify for investment success: Develop a solid plan based on your age, time

horizon, liquidity needs, income and risk tolerance. Stick with it until your circumstances

change.

• Periodically rebalance your holdings to your original asset allocation

benchmark: By doing this, you will wind up selling shares in expensive funds and

reinvesting in cheaper ones.

• Invest as much as you can in stock funds: As a rough rule, try to hold a

percentage at least equal to “100 minus your age” in stocks. Senior citizens might

consider 110 minus their ages to avoid growing too conservative.

• Don’t hop from fund to fund: Traders often lag the long-range returns of the

stock and bonds markets.

• Set your sights on building wealth slowly: Get rich quick schemes often

backfire. People who amass fortunes through speculation frequently also learn how it

feels to get poor quickly.

• Keep it simple: Basic investment plans often work best on the quest for wealth.

• Avoid gimmicks: Don’t invest in anything you don’t understand. Pain vanilla

funds survive the test of time better than faddish peers that make use of derivatives and

other arcane strategies.

• Do your home work before starting out: Never buy or sell Mutual Funds solely

on the basis of tips. If a suggestion seems to have merit, do your own analysis.

• Focus on risk, return and cost when evaluating funds: Keep in mind that a

fund’s risk and expenses are easier to predict than its return.

• Judge past performance with a grain of salt: Historic returns don’t always

predict future results, especially if a fund’s management or investment style has changed

recently.

• Don’t neglect the prospectus: You’ll find the guts of this document in the

“financial - highlights”. Look for past expense rations, portfolio turnovers, total annual

returns and year to year changes in assets.

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• Consider hiring a stockbroker or financial planner if you need help with

your portfolio: Just make sure the individual is competent and will your needs. The

more you understand about investment risks, return and costs, better you can evaluate the

kind of jobs your advisor is doing.

• Don’t overlook estate planning in your investment game plan: A living trust

has important advantage over a will.

• Make sure your Mutual Fund accounts are titled correctly: Individual, joint,

custodial and trust account are four common alternatives. The manners of titling takes

precedence over any instructions in your heirs know about your accounts.

• Take advantage of fund company service: Telephone reps often can furnish

answers to your questions.

• Let time work for you: At 10 percent annually – the long run average return on

stocks your money doubles every 7.3 years, quadruples every 14.6 years and expands

tenfold every 24.2 years.

• Emphasize time over market timing: Buy good stock funds and stay with them

for the long haul. Even professional have trouble predicting the market’s next move.

• Invest regularly: It’s been demonstrated that you can do well over the long haul

even if you invest money each year at or near the market’s annual peak.

• Recognize that the risk of being in stock decreases as your holding period

lengthens: Known as time diversification, it works because the good years far outweigh

the bad over lengthy period. On average, seven out of every ten years are winners in the

stock market.

• Save as much of your paycheck as you can: The older you get and the higher

your income, the larger the percentage you should strive to set aside.

• Consider painless and efficient automatic investment plans, as offered by

many fund companies. Your monthly investment go straight into your chosen fund from

either a bank account or your paycheck.

• Pay attention to what T-bills yield relative to stocks: by dividing the yield on

the former by the yield on the latter, when 91 days T-bills yield more than twice the

sensex 30’s yield, it could signal that stocks have become overpriced.

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• Conversely, recognize the excellent value offered by stocks any time the T-

bills /stock yield ration is considerably below 2. At the extreme, stock market condition

could be highly favorable when both numbers are about equal.

• Don’t expect good or bad times to last forever. Stocks can stay overvalued or

undervalued for surprisingly long stretches, but bull markets always come to an end, and

so do bear markets.

• Use standard deviation instead of beta to evaluate a mutual fund’ risk: The

former is a pure, unbiased measure of volatility, which is not tied to a particular stock-

price index as is beta. Standard deviation measures the extent to which returns bob up and

down around their average.

• Examine your fund’s composite PE ratio: The average price earnings ratio for

all the stocks it holds. If a fund’s PE is well above that of the sensex 30’s, it faces greater

possible losses in a correction or bear market.

• Remember that volatile funds might not be so bad when held in appropriate

proportions within a broad portfolio. Combining funds that rise and fall at different

times could result in an overall smoother ride.

• Combine funds that follow the growth and value stock picking styles: as one

style normally is out of favour when the other is in. your portfolio’s fluctuations will be

less erratic if you include investments from both camps.

• Don’t give up stock funds, even if you’re retired: A 65 year old retiree can

expect to live another 20 years or so. If you need income, take your dividends in cash. If

that’s insufficient, make systematic withdrawals from a diversified portfolio.

• But don’t set up a systematic withdrawal plan without forst calculating how

long your capital will last: given your expected return and withdrawal rate. Considering

the impact of taxes and inflation, you risk depleting your nest egg if your annual

withdrawal rate exceeds about 6 percent.

• Stay away from funds that are not members of reputable families: Unless you

know the manager has an excellent record. In particular, avoid tiny funds those with assts

less than 400 million unless they are promising members of an established group

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• Don’t assume that laggard funds will bounce back: Long term losers have

perennially poor performance records, along with outsized expenses, a small and

declining asset base, high portfolio turnover and, sometimes, legal problems.

• Don’t look to your nest egg for thrills and excitement: Some times, relatively

dull investments, such as index funds, are best.

• Keep in minds that about 70 percent of actively managed funds under

perform the market: because operating expenses, transaction costs and cash holdings

lower returns. This represents the main argument in favor of index funds.

• Favor index funds for a meaningful “core ”portion of your stock allocation:

say 25 to 50 percent or so. With these portfolios you need not worry that a fund manager

might jump ship. With a passive approach, it doesn’t matter so much who’s in control.

• Beware of gimmicks when shopping for an index fund: Avoid “enhanced”

index portfolios that claim they can outperform the sensex or other benchmarks. Plain

vanilla products with rock bottom costs are best.

• Include small cap and international funds in your portfolio for better risk

adjusted performance: Younger investors with long time horizons should take a

significant stake in these categories.

• Look beyond a fund’s name to its actual investment policies and portfolio

holdings.

• Avoid small stock portfolios with assets greater than 20,000 million or so

unless you’re convinced the management is exceptionally talented.

• Keep in mind that small stocks move in cycles of five to seven years, during

which they either outperform or underperform the large blue chips.

• Conversely, do take bigger positions in small stocks when they’re cheap:

Small companies represent excellent value when the PE of any funds approximates that

of the sensex.

• Don’t hesitate to venture abroad: International investing is a great way to round

out a portfolio, since about two-thirds of world stock market values exist outside India.

• Lean to international rather than global funds for your over-seas exposure:

The former invest exclusively in foreign markets, whereas the latter have stakes in

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stateside stocks as well. With international funds, you can fine tune your overseas

exposure more precisely.

• Check the foreign weightings of your domestic stock funds: which could hold

up to 15 percent or more of their assets in non- Indian issues to try to improve

performance. You may already have more international exposure than you think.

• Maintain modest stake in emerging stock markets: as well if you have a

lengthy investment horizon. Developing nations offer exciting long term growth

potential.

• Don’t expect international diversification to reduce your portfolio’s volatility

all the time: Normally, it works reasonably well, but during a global panic, all the

world’s major stock exchanges could tumble together.

CCOONNCCLL UUSSII OONN::

II oorrddeerr ttoo ssttuuddyy tthhee ccoonncceepptt ooff mmuuttuuaall ffuunndd wwee sshhoouulldd nnoottee tthhaatt aa mmuuttuuaall ffuunndd iiss aa

ttrruusstt tthhaatt ppoooollss tthhee mmoonneeyy ooff sseevveerraall iinnvveessttoorrss aanndd mmaannaaggeess iinnvveessttmmeennttss oonn bbeehhaall ff .. TThhee

ffuunndd ccooll lleeccttss tthhiiss mmoonneeyy ff rroomm iinnvveessttoorrss tthhrroouugghh vvaarriioouuss sscchheemmeess.. EEaacchh sscchheemmeess iiss

ddii ff ffeerreennttiiaatteedd bbyy ii ttss oobbjjeeccttiivveess ooff iinnvveessttmmeennttss oorr iinn ootthheerr wwoorrddss aa bbrrooaaddllyy ddeeff iinneedd

ppuurrppoossee ooff hhooww tthhee ccooll lleecctteedd mmoonneeyy iiss ggooiinngg ttoo bbee iinnvvoollvveedd..

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IInnvveessttoorrss iinnvveesstt iinn mmuuttuuaall ffuunndd dduuee ttoo ffooll lloowwiinngg aaddvvaannttaaggeess:: tthheeyy hhaavvee

pprrooffeessssiioonnaall mmaannaaggeemmeenntt,, ddiivveerrssii ff iiccaattiioonn,, ccoonnvveenniieenntt aaddmmiinniissttrraattiioonn,, rreettuurrnn ppootteennttiiaall ,,

llooww ccoosstt,, ll iiqquuiiddii ttyy..

BByy ccoommppaarriinngg tthhee aabboovvee mmeennttooiinneedd sscchheemmeess II ccaammee ttoo kknnooww tthhee rriisskk aanndd rreettuurrnn

rreellaattiioonn bbeettwweeeenn tthhee ssppeeccii ff iieedd sscchheemmeess.. TThheerreeffoorree iinnvveessttoorrss bbeeffoorree iinnvveessttiinngg iinn aannyy

MMuuttuuaall FFuunndd sscchheemmeess tthheeyy sshhoouulldd ssttuuddyy tthhee rriisskk aanndd rreettuurrnn rreellaattiioonn.. AAnndd ii ff tthhee rriisskk aanndd

rreettuurrnnss iiss bbeeeenn mmaattcchheedd wwii tthh tthheeii rr ppllaannnniinngg,, tthheenn oonnllyy tthhee iinnvveessttoorrss sshhoouulldd ggoo ffoorr MMuuttuuaall

FFuunndd sscchheemmeess..

So the future of mutual funds in India is bright, because it meets investor s needs

perfectly. This will give boost to Indian investors and will attract foreign investors also. It

will lead to the growth of strong institutional framework that can support the capital

markets in the long run.

BBII BBLL II OOGGRRAAPPHHYY::

wwwwww..iinnddiiaaiinnffooll iinnee..ccoomm

wwwwww..aammff ii iinnddiiaa..ccoomm

wwwwww..mmuuttuuaall ffuunnddss..ccoomm

wwwwww..iinnvveessttooppiiddiiaa..ccoomm

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MMUUTTUUAALL FFUUNNDDSS IINN IINNDDIIAA BBYY:: NNaall iinnii PPrraavvaa TTrriippaatthhyy

AAMMFFII WWOORRKK BBOOOOKK

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