1
COMMON STROKES FOR VARIOUS FOLKS
PROJECT ON MUTUAL FUNDS
Submitted in partial fulfillment of PGDM
PGDM Batch 2011-13
Submitted To:
Submitted By:
Dr. M. MADANA MOHAN
P.PREM KUMAR
P.G.D.M (7071)
Section- B
Batch- 2011-13
2
COMMON STROKES FOR VARIOUS FOLKS
PROJECT ON MUTUAL FUNDS
Submitted in partial fulfillment of PGDM
PGDM BATCH 2011-13
Submitted By
P.PREM KUMAR
Faculty Guide
Director Academics
3
Declaration
I P.PREM KUMAR hereby declare that the project titled COMMON STROKES FOR
VARIOUS FOLKS PROJECT ON MUTUAL FUNDS is an original work carried out
under the guidance of Dr. M.MADANA MOHAN.
The report submitted is a bonafide work of my own efforts and has not been
submitted to any institute or published before.
Signature of the student
P.PREM KUMAR
Date:
Place:
4
CERTIFICATE
TO WHOMESOEVER IT MAY CONCERN
This is to certify that Mr. P.PREM KUMAR of PGDM has successfully completed
Summer Training Program for a period of 45 days with FUTURE CAPITAL
SECURITIES LTD. from 30th APRIL 2012 to 14th JUNE 2012.
As per our assessment he is hard working and his performance has been good
during the training program.
We wish him all the success for his future.
Signature:
NAVEEN KUMAR DHONTHI
MANAGER
Date:
Place:
5
Faculty Guide Certificate
I Prof. M.MADANA MOHAN certify Mr. P.PREM KUMAR that the work
done and the training undertaken by him is genuine to the best of my
knowledge and acceptable.
Signature
Prof. M.MADANA MOHAN
Date:
6
Acknowledgement
I extent my sincere gratitude to Director IRFAN UAL HAQ, VISHWA VISHWANI
SCHOOL OF BUSINESS
I render my whole hearted thanks to Mr. NAVEEN KUMAR DHONTHI, Branch
Manager of FUTURE CAPITAL SECURITIES LTD, for giving me an opportunity to
do my project in their esteem organization. I extent my whole hearted thanks to Mr.
SRINIVAS for valuable inputs given during my project.
I am extremely indebted to MR. BIPIN & MR. MUKESH for enlighten us about the
stock market and off line trading.
I thank my Faculty Guide Dr. M.MADANA MOHAN for continuous support for
pursuing my project.
I render my whole hearted thanks to all the other respected faculties of the
management department, for their assistance and co-operation given to me in regard
to this work.
I thank my parents and other family members for their valuable and motivational
support in completion of this project.
I also take this opportunity to thank all my friends and well wishers for their support in
helping me carrying out my project.
Signature of the student
P.PREM KUMAR
Date:
Place:
7
Annexure VI
INDEX
Chapter no.
Content
Chapter 1
INTRODUCTION
Chapter 2
COMPANY PROFILE
INDUSTRY PROFILE
LITERATURE REVIEW
Chapter 3
RESEARCH METHOLOGY
Chapter 4
DATA COLLECTION
ANALYSIS & INTERPRETATION
Chapter 5
FINDINGS
RECOMMENDATIONS
CONCLUSION
Bibliography
BOOKS/ARTICLES REFERRED
WEBSITES REFERRED
Page no.
8
LIST OF TABLES
SR.NO
TABLE 1.1
TABLE
NAME AND ADDRESSES OF SEBI REGISTERED
MUTUAL FUNDS
TABLE 2.1 PROS AND CONS OF THE INVESTMENTS
TABLE 2.2 FUNDS ALLOCATION
TABLE 2.3
DIFFERENCES BETWEEN OPEN ENDED & CLOSED
ENDED FUNDS
TABLE 2.4 INTERNATIONAL FUNDS:
TABLE 3.1 KEY INFORMATION
TABLE 3.2 SCHEME HIGHLIGHTS
TABLE 3.3 INVESTMENT PATTERN
TABLE 3.4 ABSOLUTE RETURNS
TABLE 3.5 ABSOLUTE ANNUALIZED RETURNS ANALYSIS
TABLE 3.6 TOP HOLDINGS
TABLE 3.7 SECTOR ALLOCATION (31ST MAY 12)
TABLE 3.8 ASSET ALLOCATION (%)
TABLE 3.9 CONCENTRATION
TABLE
3.10
RETURNS (NAV)
TABLE 4.1 KEY INFORMATION
TABLE 4.2 SCHEME HIGHLIGHTS
TABLE 4.3 ABSOLUTE RETURNS
TABLE 4.4 TOP HOLDINGS
TABLE 4.5 SECTOR ALLOCATION (31ST MAY 12)
TABLE 4.6 ASSET ALLOCATION (%)
TABLE 4.7 CONCENTRATION
TABLE 4.8 RETURNS (NAV)
TABLE 5.1 KEY INFORMATION
PAGE
NO.
9
TABLE 5.2 SCHEME HIGHLIGHTS
TABLE 5.3 ABSOLUTE RETURNS(%)
TABLE 5.4 TOP HOLDINGS
TABLE 5.5 SECTOR ALLOCATION (31ST MAY 12)
TABLE 5.6 ASSET ALLOCATION (%)
TABLE 5.7 CONCENTRATION
TABLE 5.8 RETURNS (NAV)
TABLE 6.1 KEY INFORMATION
TABLE 6.2 SCHEME HIGHLIGHTS
TABLE 6.3 ABSOLUTE RETURNS (%)
TABLE 6.4 ABSOLUTE ANNUALIZED RETURNS ANALYSIS
TABLE 6.5 TOP HOLDINGS
TABLE 6.6 SECTOR ALLOCATION (31ST MAY 12)
TABLE 6.7 ASSET ALLOCATION (%)
TABLE 6.8 CONCENTRATION
TABLE 6.9 RETURNS (NAV)
TABLE 7.1 NAVS OF VARIOUS FUND SCHEMES
LIST OF CHARTS
SR.NO
CHART
PAGE NO.
CHART 1.1 EQUITY BROKING TURNOVER – YEAR WISE
29
CHART 1.2 Y-O-Y GROWTH – EQUITY BROKERAGE TURNOVER
29
CHART 1.3 EQUITY BROKERAGE TURNOVER – QUARTER WISE 30
CHART 1.4 TOTAL NUMBER OF TRADES– CASH SEGMENT
31
CHART2.1
43
AGGRESSIVE PLAN
CHART 2.2 CONSERVATIVE PLAN
CHART 3.1 SHOWING ABSOLUTE ANNUALIZED RETURNS
CHART 3.2 SHOWING PORTFOLIO AND ASSEST %
CHART 3.3 SHOWING SECTOR ALLOCATION
44
10
CHART 3.4 SHOWING RETURNS (NAV)
CHART 4.1 SHOWING ABSOLUTE ANNUALIZED RETURNS
CHART 4.2 SHOWING PORTFOLIO AND ASSEST %
CHART 4.3 SHOWING SECTOR ALLOCATION
CHART 4.4 SHOWING RETURNS (NAV)
CHART 5.1 SHOWING ABSOLUTE ANNUALIZED RETURNS
CHART 5.2 SHOWING PORTFOLIO AND ASSEST %
CHART 5.3 SHOWING SECTOR ALLOCATION
CHART 5.4 SHOWING RETURNS (NAV)
CHART 6.1 SHOWING ABSOLUTE ANNUALIZED RETURNS
CHART 6.2 SHOWING PORTFOLIO AND ASSEST %
CHART 6.3 SHOWING SECTOR ALLOCATION
CHART 6.4 SHOWING RETURNS (NAV)
11
CHAPTER 1
MUTUAL FUNDS
INTRODUCTION:-
A mutual fund is a professionally managed type of collective investment scheme that
pools money from many investors and invests it in stocks, bonds, short-term money
market instruments and other securities. Mutual funds have a fund manager who
invests the money on behalf of the investors by buying / selling stocks, bonds etc.
Currently, the worldwide value of all mutual funds totals more than $US 26 trillion.
There are various investment avenues available to an investor such as real estate,
bank deposits, post office deposits, shares, debentures, bonds etc. A mutual fund is
one more type of investment available to investors. There are many reasons why
investors prefer mutual funds. Buying shares directly from the market is one way of
investing. But this requires spending time to find out the performance of the company
whose share is being purchased, understanding the future business prospects of the
company, finding out the track record of the promoters and the dividend, bonus issue
history of the company etc. An informed investor needs to do research before
investing. However, many investors find it cumbersome and time consuming to pore
over so much of information, get access to so much of details before investing in the
shares. Investors therefore prefer the mutual fund route. They invest in a mutual fund
scheme which in turn takes the responsibility of investing in stocks and shares after
due analysis and research. The investor need not bother with researching hundreds
of stocks. It leaves it to the mutual fund and its professional fund management team.
Another reason why investors prefer mutual funds is because mutual funds offer
diversification. An investor’s money is invested by the mutual fund in a variety of
shares, bonds and other securities thus diversifying the investor’s portfolio across
different companies and sectors. This diversification helps in reducing the overall risk
of the portfolio. It is also less expensive to invest in a mutual fund since the minimum
investment amount in mutual fund units is fairly low (Rs. 500 or so). With Rs. 500 an
investor may be able to buy only a few stocks and not get the desired diversification.
12
These are some of the reasons why mutual funds have gained in popularity over the
years. Indians have been traditionally savers and invested money in traditional
savings instruments such as bank deposits. Against this background, if we 6 look at
approximately Rs. 7 lakh crores1 which Indian Mutual Funds are managing, then it is
no mean an achievement. A country traditionally putting money in safe, risk-free
investments like Bank FDs, Post Office and Life Insurance, has started to invest in
stocks, bonds and shares – thanks to the mutual fund industry.
However, there is still a lot to be done. The Rs. 7 Lakh crores stated above includes
investments by the corporate sector as well. Going by various reports, not more than
5% of household savings are channelized into the markets, either directly or through
the mutual fund route. Not all parts of the country are contributing equally into the
mutual fund corpus. 8 cities account for over 60% of the total assets under
management in mutual funds. These are issues which need to be addressed jointly
by all concerned with the mutual fund industry. Market dynamics are making industry
players to look at smaller cities to increase penetration. Competition is ensuring that
costs incurred in managing the funds are kept low and fund houses are trying to give
more value for money by increasing operational efficiencies and cutting expenses.
As of today there are around 40 Mutual Funds in the country. Together they offer
around 1051 schemes2 to the investor. Many more mutual funds are expected to
enter India in the next few years.
All these developments will lead to far more participation by the retail investor and
ample of job opportunities for young Indians in the mutual fund industry. This module
is designed to meet the requirements of both the investor as well as the industry
professionals, mainly those proposing to enter the mutual fund industry and therefore
require a foundation in the subject. Investors need to understand the nuances of
mutual funds, the workings of various schemes before they invest since their money
is being invested in risky assets like stocks/ bonds (bonds also carry risk). The
language of the module is kept simple.
13
Objectives of the study:
1. To examine the benefits available for Mutual Fund investment.
2. To examine the market trends of the Mutual fund schemes and analyze them.
3. To analyze which combination will be better from investor point of view.
4. To evaluate the benefits of investing in Mutual Funds
5. To examine the performance of Equity fund scheme of AXIS BANK, ICICI BANK,
FRANKLIN TEMPLETON and RELIANCE mutual funds.
Scope of the Study:
The study is taken up from 30-04-2012 to 14-06-2012 that is a quarter periods in
which an analysis of NAV and returns of 4 funds are undertaken on DAILY basis on
every Monday of the period of the study.
The study covers NAV, Portfolio’s, Asset Allocation and Returns. Its analysis for the
period of 7 Weeks on the basis of trend movement of NAV and returns. The project
duration is 30-04-2012 TO 14-06-2012.
14
CHAPTER 2
Company profile:
Future Capital Securities Ltd. (FCSL)
FCSL is a Member at the National Stock Exchange of India Ltd. (NSE), Bombay
Stock Exchange (BSE), MCX Stock Exchange Ltd. (MCX-SX) and is a Depository
Participant (DP) of CDSL. It presently offers Retail Broking services in Equities &
Derivatives, Currency Derivatives, Depository services, investments into Mutual
Funds, IPOs, Bonds, and facilitates all kinds of Retail Loans through its network of
Centres spread in 11 States of India.
FCSL commenced operations in August 2010. Future Capital Commodities Ltd.
(FCCL), subsidiary of FCSL has commenced operations in October 2011 with its
Broking & Investment services at the National Spot Exchange Ltd. (NSEL) and
FCSL’s CDSL DP is empanelled with NSEL to open Investors DP Commodity
Accounts. Further, FCCL has recently launched broking operations in the
Commodities segment at MCX and NCDEX. FCSL is also in the process of
launching in the immediate future, an all-product, transaction-cum-service portal
enabling its clients to seamlessly transact across products with DP and multiple
Bank gateways integrated.
We are offering the entire range of financial products & services through FCCL,
FCSL and our parent, FCH Ltd. Retail Broking services across all the premier Stock
exchanges & Commodity exchanges, Loan against Shares, Loan against Gold, Loan
against Property, Auto Loans, Private Wealth Management services, Property
services, Insurance, Mutual Funds & Bonds are available through the FCSL centres.
FCSL is looking keenly at the Business Associates (Sub-brokers/Authorized
persons/IFAs) channel to expand its reach pan-India.
15
Industry Profile
HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY
The mutual fund industry in India started in 1963 with the formation of Unit Trust of
India, at the initiative of the government of India and Reserve Bank .The history of
mutual funds in India can be broadly divided into four distinct phases.
FIRST PHASE-1964-87
An act of parliament establishment unit trust of India (UTI) on 1963.It was set up by
the Reserve bank of India and functioned under the Regulatory and administrative
control of the Reserve bank of India. In 1978
UTI was de-linked from the RBI and
the industrial development Bank of India (IDBI)) took over the regulatory and
administrative control in place of RBI. The first scheme launched by UTI was unit
scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of assets under
management.
SECOND PHASE-1987-1993(ENTRY OF PUBLIC SECTOR FUNDS)
1987 marked the entry of non-UTI, public sector mutual funds set up by public sector
banks and Life Insurance Corporation of India (LIC) and General Insurance
Corporation of India (GIC). SBI Mutual Fund was the first non-UTI Mutual Fund
established in June 1987 followed by Can bank Mutual Fund (Dec 87), Punjab
National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of
India (June 90). LIC established its mutual fund in June 1989 while GIC had set up
its mutual fund in December 1990. At the end of 1993, the mutual fund industry had
assets under management of Rs.47, 004 crores.
16
THIRD PHASE-1993-2003 (ENTRY OF PRIVATE SECTOR FUNDS)
With the entry of private sector funds in 1993, a new era started in the Indian mutual
fund industry, giving the Indian investors a wider choice of fund families. Also, 1993
was the year in which the first Mutual Fund Regulations came into being, under
which all mutual funds, except UTI were to be registered and governed. The
erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private
sector mutual fund registered in July 1993.The 1993 SEBI (Mutual fund) Regulations
were substituted by a more comprehensive and revised Mutual Fund Regulations in
1996.The industry now functions under the SEBI (Mutual Fund) Regulations in
1996.The number of mutual fund houses went on increasing, with many foreign
mutual funds setting up funds in India and also the industry gas witnessed several
mergers and acquisitions. As at the end of January 2003, there were 33 mutual
funds with total assets of Rs.1, 21825 crores. The Unit Trust of India with Rs.44, 541
crores of assets under management was way ahead of other mutual funds.
FOURTH PHASE – SINCE FEBRUARY 2003
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was
bifurcated into two separate entitles. One is the specified undertaking of the unit
Trust of India with assets under management of Rs.29,835 crores as at the end of
January 2003, representing broadly, the assets of Us 64 scheme, assured return and
certain other schemes. The specified undertaking of Unit Trust of India, functioning
under an administrator and under the rules framed by Government of India and does
not come under the purview of the Mutual Fund Regulations. The second is the UTI
Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It s registered with SEBI
and functions under the Mutual Fund Regulations. With the bifurcation of the
erstwhile UTI which had in March 2000 more than Rs.76,000 crores of assets under
Management and with he setting up of a UTI Mutual Fund, conforming to the SEBI
Mutual Fund Regulations, and with recent mergers taking place among different
private sector funds, the mutual fund industry has entered its current phase of
consolidation and growth. As at the end of October 31, 2003, there were 31 funds,
which manage assets of Rs.1, 26,726 crores under 389 schemes.
17
RECENT TRENDS IN THE MUTUAL FUND INDUSTRY
The most important trend in the mutual fund industry is the aggressive explosion of
the foreign owned mutual funds companies and the decline of the companies floated
by nationalized banks and small private sector players.
Many nationalized banks got into the mutual funds business in the early nineties and
got of to a good start due to the stock market boom prevailing then. Few hired
specialized staff and generally chose to transfer staff from parent organizations. The
performance of most of the schemes floated by these organizations was not good.
Some schemes had offered guaranteed returns and there parent organizations had
to bail out these AMC’s by paying large amount 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 the 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 a general restructuring going on.
The foreign owned companies have deep pockets and have come here with the
expectations of a long haul. They can be credited with the introduction of many new
practices such as new product innovation, sharp improvement in the 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 in the last few years in
response to the competition provided by these.
18
Table.1.1 NAME AND ADDRESSES OF SEBI REGISTERED MUTUAL FUNDS
S.No
Name
Registration No
Registration Date
MF/021/95/3
30.12.1994
MF/054/07/02
09.02.2007
MF/061/09/01
04.09.2009
MF/018/94/2
21.11.1994
Alliance Capital Mutual Fund,
Address for correspondence
1.
C/o. AZB & Partners
Advocates & Solicitors,
Express Towers – 23rd Floor,
Nariman Point, Mumbai – 400 021
AIG Global Investment Group Mutual
Fund
FCH House, Ground Floor
Peninsula Corporate Park
2.
Ganpatrao Kadam Marg
Lower Parel
Mumbai – 400 013
TEL :
FAX: 24255100
Axis Mutual Fund,
1st Floor, Axis House,
Bombay Dyeing Mills Compound,
Pandurang Budhkar Marg,
Worli, Mumbai 400025
3.
TEL : 39403300
FAX : 22040130
WEB : www.axismf.com
www.axismutual.com
Email customerservice@axismf.com
Toll Free No : 1800 3000 3300
Baroda Pioneer Mutual Fund
4.
501, Titanium, 5th floor,
Western Express Highway,
19
Goregaon (E), Mumbai 400 063.
TEL : 307410000, 42197999
FAX :30741001
WEB : www.barodapioneer.in
Email : info@barodapioneer.in
Birla Sunlife Mutual Fund
One India Bulls Centre, Tower-1,
17th Floor, Jupiter Mills Compound,
5.
841, Senapati Bapat Marg,
Elphinstone Road, Mumbai- 400001
MF/020/94/8
23.12.1994
MF/056/08/01
31.03.2008
MF/049/04/01
27.05.2004
MF/004/93/4
19.10.1993
TEL : 43568000
FAX : 43568110/8111
WEB : www.birlasunlife.com
Bharti AXA Mutual Fund
51, 5th Floor,
Kalpataru Synergy, East Wing,
Vakola, Santacruz (E),
6.
Mumbai 400 055.
TEL : 40479000
FAX : 40479001
Web : www.bhartiaxa-im.com
Email: info@bhartiaxa-im.com
BNP Paribas Mutual Fund
1 North Avenue
Maker Maxity
Bandra Kurla Complex
7.
Mumbai-400 051
Tel- 91 (22) 3370 4000
Fax- 91 (22) 3370 4294
WEB : www.bnpparibasmf.in
Email: customercare@bnpparibasmf.in
8.
Canara Robeco Mutual Fund
Construction House, 4th Floor,
20
5, Walchand Hirachand Marg,
Ballard Estate, Mumbai 400 001.
Tel : 6658 5000 to 5010
Fax 6658 5011 to 5013
WEB : www.canararobeco.com
Email : crmf@canararobeco.com
CRB Mutual Fund
Daruwala Mansion, 3rd Floor,
9.
90 Chandanwadi Cross Lane,
Mumbai 400 020.
MF/008/93/5
17.12.1993
MF/060/09/01
10.02.2009
MF/047/02/10
28.10.2002
MF/036/97/7
30.1.1997
TEL : 2072719/20
FAX : 2096433
Daiwa Mutual Fund,
5th Floor, Harchandrai House,
81, Maharshi Karve Road,
10.
Marine Lines, Mumbai – 400 002
TEL : 022-66142900
FAX : 022-66100148
WEB : www.daiwa.in
Deutsche Mutual Fund
2nd Floor, 222, Kodak House,
Dr. D. N. Road,
11.
Mumbai 400 001.
TEL : 22072211
FAX : 22074411
WEB : http://www.deutschemutual.com
Email : deutsche.mutual@db.com
DSP BlackRock Mutual Fund,
Mafatlal Centre, 10th Floor,
12.
Nariman Point,
Mumbai 400 021.
TEL : 66578000
FAX: 66578181
21
WEB : www.dspblackrock.com
Email : service@dspblackrock.com
Toll Free No: 1800 345 4499
Edelweiss Mutual Fund
14th Floor, Express Towers,
Nariman Point, Mumbai – 400 021
13.
TEL : 022-22864400
MF/057/08/02
30.04.2008
MF/028/96/4
3.7.1996
MF/026/96/8
19.2.1996
MF/050/05/01
17.02.2005
FAX : 022-4097 9970
Email: investor.amc@edelcap.com
Website: www.edelweissmf.com
Escorts Mutual Fund,
11, Scindia House,
Connaught Circus,
New Delhi 110 001.
TEL : 011-3321654 / 5177 / 3319991 /
14.
3351343
FAX : 011-23761495, 23325177
WEB: www.escortsmutual.com
Email : help@escortsmutual.com
Mumbai Tel. Nos.
TEL : 30947097, 24218162
Franklin Templeton Mutual Fund
Level 4, Wockhardt Towers,
Bandra Kurla Complex,
15.
Bandra (East),
Mumbai – 400 051
TEL : 6751 9100
FAX : 6649 0622
WEB : www.templetonindia.com
Fidelity Mutual Fund
16.
6th floor, Mafatlal Centre,
Nariman Point,
Mumbai 400 021
22
TEL: Toll Free number 1-600- 121262
Gurgaon : +91 (0124) 509 2104
(Investor Relations Officer's number)
Mumbai : + 91 (022) 5655 4000
FAX: Gurgaon : +91 (0124) 509 2100
Mumbai: +91 (022) 5655 4200
Email: investor.line@fidelity.co.in
WEB : www.fidelity.co.in
Goldman Sachs Mutual Fund
Rational House,
Appasaheb Marathe Marg,
Prabhadevi,
17.
Mumbai 400025
MF/058/08/03
26.08.2008
MF/044/00/6
30.6.2000
MF/046/02/5
27.5.2002
MF/043/00/3
28.3.2000
TEL : 66169000
FAX : 66279240
Email: gsamindia@gs.com
WEB: www.gsam.in
HDFC Mutual Fund,
Ramon House, 3rd Floor,
169, Backbay Reclamation,
18.
Churchgate,
Mumbai 400 020.
TEL : 22029111
FAX: 22028862
WEB : www.hdfcfund.com
HSBC Mutual Fund,
314 D N Road, Fort,
19.
Mumbai 400 001.
TEL : 66145000
FAX: 40029600
Email : hsbcmf@hsbc.co.in
20.
ICICI Securities Fund,
ICICI Towers, 7th Floor,
23
North Block,
Bandra-Kurla Complex,
Mumbai 400 051.
TEL : 6531414 / 6538988 (D)
FAX : 6531063 / 6531178
IIFL Mutual Fund
IIFL Centre, 3rd Floor Annex,
Kamala City, Senapati Bapat Marg,
21.
Lower Parel, Mumbai-400013
MF/067/11/2
23.3.2011
MF/068/11/3
24.3.2011
MF/040/99/5
11.2.1999
Tel : 42499000
Fax : 40609049
Web: indiainfoline.com
Indiabulls Mutual Fund
One Indiabulls Centre, Tower 2,
Basement,
Jupiter Mills, Fitwala Road,
22.
Near Sai Mandir, Opposite Deepak
Talkies,
Elphinstone Road, Mumbai – 400013
Tel: 30439414
Fax: 39805325
ING Mutual Fund,
Unit No. 101,
601/606, 6th Floor,
“Windsor”,
Off. C.S.T. Road,
23.
Vidyanagari Marg,
Kalina, Santacruz (East),
Mumbai – 400 098
TEL : 022-39827999
Toll Free : 18004255433
FAX : 022-26500248
Email : information@in.ing.com
24
WEB : www.ingim.co.in
ICICI Prudential Mutual Fund
2nd Floor, 302, Block B-2,
Nirlon Knowledge Park,
Western Express Highway,
Mumbai - 400063.
24.
Tel No. +9122 42090573
MF/003/93/6
13.10.1993
MF/064/10/01
29.3.2010
MF/042/00/3
13.3.2000
MF/015/94/8
15.9.1994
Registered Office :
12th Floor, Narain Manzil,
23, Barakhamba Road,
New Delhi – 110 001
WEB : www.pruicici.com
IDBI Mutual Fund
5th Floor, Mafatlal Centre,
Nariman Point,
Mumbai 400 021.
25.
Tel.: 66442800
Fax: 66442801
E-mail:
Krishnamurthy.vijayan@idbimutual.co.in
www.idbimutual.co.in
IDFC Mutual Fund,
One IndiaBulls Centre,
841, Jupiter Mills Compound,
Senapati Bapat Marg,
26.
Elphinstone Road (West),
Mumbai – 400 013.
TEL : 22621111
FAX : 22693365
Email : investor@idfcmf.com
WEB : www.idfcmf.com
27.
JM Financial Mutual Fund
502, 5th Floor, ‘A’ Wing,
25
Laxmi Towers, Bandra Kurla Complex,
Mumbai - 400051
TEL : 39877777
FAX : 26528377-78
WEB : www.JMFinancialmf.com
Email : mktg@jmmutual.com
JP Morgan Mutual Fund
J.P. Morgan Towers,
Off C.S.T. Road, Kalina,
Santacruz - East
28.
Mumbai 400 098
MF/053/07/01
08.02.2007
MF/038/98/1
23.6.1998
MF/041/99/4
28.4.1999
MF/012/94/5
9.5.1994
TEL : 6157 3000
FAX : 6157 4170
WEB : www.jpmorganmf.com
Email : india.investors@jpmorgan.com
Kotak Mahindra Mutual Fund,
Kotak Towers, 6th Floor,
Bldg. No. 21, Infinity Park,
29.
Gen. A. K. Vaidya Marg,
Malad (E), Mumbai – 400 097
TEL : 66384444
FAX : 66384455
WEB : www.kotakmutual.com
KJMC Mutual Fund,
168, Atlanta,
16th Floor,
30.
Nariman Point
Mumbai 400 021
TEL : 22885201/22832350
FAX : 22852892
Email : kjmcmutual@kjmcmutual.com
31.
LIC Nomura Mutual Fund
Industrial Assurance Bldg.,
26
4th Floor, Opp Churchgate Stn.,
Mumbai 400 020.
TEL : 22851661/22851663
FAX : 22040039
WEB : www.licmutual.com
L&T Mutual Fund
309, Trade Centre, 3rd Floor,
32.
Bandra Kurla Complex,
MF/035/97/9
3.1.1997
MF/005/93/1
5.11.1993
MF/055/07/03
30.11.2007
MF/063/09/04
29.12.2009
MF/062/09/03
04.12.2009
Bandra (East),
Mumbai - 400 051.
Morgan Stanley Mutual Fund
19th Floor, One Indiabulls Centre,
Tower 2, Jupiter Mils Compound,
33.
841, Senapati Bapat Marg,
Elphinstone Road, Mumbai - 400 013.
TEL : 61181000
FAX : 61181027
WEB : www.morganstanley.com/indiamf
Mirae Asset Mutual Fund
Unit 606, 6th Floor, Windsor,
Off CST Road, Kalina, Santacruz (E),
MUMBAI 400 098
34.
TEL : 67800300
FAX : 6725 3942 / 45
Email :
customercare@miraeassetmf.co.in
WEB : www.miraeassetmf.co.in
Motilal Oswal Mutual Fund
81/82, 8th Floor,
35.
Bajaj Bhawan,
Nariman Point, Mumbai 400 021
Tel: 39804200
36.
Peerless Mutual Fund
27
Peerless Mansion,
1 Chowringhee Square,
Kolkata-700069
TEL : 033-22435496
FAX : 033-22435339
Pramerica Mutual Fund
Nirlon House, 2nd Floor,
37.
Dr. Annie Besant Road,
Worli, Mumbai- 400025
MF/065/10/02
13.5.2010
MF/019/94/0
13.12.1994
MF/051/05/02
02.12.2005
MF/022/95/1
30.6.1995
TEL: 022- 61593000
FAX: 022- 61593100
Principal Mutual Fund
Exchange Plaza, 2nd Floor,
B Wing, NSE Building,
38.
Bandra Kurla Complex,
Bandra(East)
Mumbai 400051.
TEL : 67720555
Quantum Mutual Fund,
505, 5th Floor,
Regent Chambers,
39.
Nariman Point,
Mumbai – 400021
TEL : 22830322
FAX : 22854318
WEB : www.quantumamc.com
Reliance Mutual Fund
One India Bulls Centre, Tower 1,
11th 7 12th Floor, Jupiter Mills
40.
Compound,
841 Senapati Bapat Marg,
Elphinstone Road, Mumbai 400 001.
TEL : 30287168
28
FAX : 30414885
WEB: www.reliancemutual.com
Email:customer_care@reliancemutual.c
om
Religare Mutual Fund
3rd Floor, GYS Infinity,
Paranjpe “B” Scheme,
41.
Subhash Road, Vile Parle (East),
MF/052/06/01
24.07.2006
MF/030/96/0
1.10.1996
MF/009/93/3
23.12.1993
MF/017/94/4
21.11.1994
Mumbai – 400 057.
TEL : 67310000
FAX : 28371565
Sahara Mutual Fund,
9th Floor, 97-98
Atlanta Building
Nariman Point
42.
Mumbai – 400 021
Tel : 22-6752 0121 – 27
Fax : 66547855
WEB : www.saharamutual.com
Email:
saharamutual@saharamutual.com
SBI Mutual Fund
191, Maker Towers "E"
Cuffe Parade
43.
Mumbai 400005
TEL : 22180221-25,27
FAX : 22189663
WEB : www.sbimf.com
Shriram Mutual Fund
106, Shiv Chambers, 1stFloor,
44.
‘B’ Wing Sector - 11,
C.B.D.Belapur,
Navi Mumbai 400 614.
29
TEL : 7901447/8
FAX : 7901449
Email: srmf@roltanet.com
Sundaram Mutual Fund,
46, Whites Road,
45.
Royapettah,
Chennai 600 014.
MF/034/97/2
3.1.1997
MF/002/93/
21.9.1993
MF/023/95/9
30.6.1995
MF/066/11/1
23.3.2011
TEL : 044-28543362/28543367
FAX : 044-28543156
Taurus Mutual Fund
Ground Floor, AML Centre-1
8 Mahal Industrial Estate
Mahakali Caves Road
46.
Andheri (E), Mumbai – 400093
Tel: 022- 66242700
Fax: 022- 66242722
Website: www.taurusmutualfund.com
Email: info@taurusmutualfund.com
Tata Mutual Fund,
Mafatlal Center,
9th Floor, Nariman Point,
47.
Mumbai 400 021.
TEL : 66578282
FAX : 22613782
WEB : www.tatamutualfund.com
Email kiran@tataamc.com
Union KBC Mutual Fund
7th Floor, Piramal Tower,
Peninsula Corporate Park,
48.
Ganpatrao Kadam Marg,
Lower Parel (West)
Mumbai – 400013
Tel: 2483 3300
30
Fax: 2483 3401
Web: www.unionkbc.com
UTI Mutual Fund
UTI Towers,
‘Gn’ Block, Bandra-Kurla Complex,
49.
Bandra (East),
Mumbai 400 051
MF/048/03/1
14.01.2003
TEL : 56786666
FAX : 56786578
WEB : www.utimf.com
The turnover in the Indian equity markets (BSE and NSE combined) registered a
strong 46% growth in FY10-11 (36% CAGR over the last 5 year). However, the
markets have witnessed a structural change over the last few quarters with a decline
in the higher yielding cash volume and a sharp rise in the lower yielding options
volume. On the back of sustained high competitive environment and the change in
trading pattern, the blended broking yields declined in FY11 leading to only a
moderate growth in broking revenues. However, expenses increased sharply with
higher employee costs and costs associated with building capacities in existing as
well as new business lines. Consequently the brokerage houses’ profitability
declined in FY10-11.
Some of the larger brokerage houses have reasonably well diversified revenue
streams but still remain largely vulnerable to capital markets environment. Given the
current challenging outlook for the equity markets over the short term, ICRA expects
pressures on the revenue growth over the next few quarters and consequently the
overall profitability indicators.
31
Strong Growth In Options Trading Drive Industry Broking Volumes In FY11
The domestic equity brokerage turnover (BSE and NSE combined) registered an
increase of 46% in FY10-11 to Rs 339 lakh crore led by a sharp 127% growth in the
options segment2. The derivatives segment contributed to 86% of the overall
turnover in FY11 as compared to 76% in FY10 while the options segment accounted
for 58% in FY11 (37% in FY10) and futures segment for 29% during the same period
(39% in FY10). Within the Options segment, the index option based on NIFTY alone
accounted for nearly 95% of the total options volume, providing adequate liquidity
and further fueling investor appetite. The strong growth of the options segment may
be partly attributable to the fact that beginning FY09, the brokerage and Securities
Transaction Tax (STT) in the options segment are charged on the premium portion
and not on the entire open interest. The activity levels were further supported by the
increasing comfort of traders/investors dealing with these products coupled with
higher participation in the Indian equities market by sophisticated investors such as
Foreign Institutional Investors (FIIs). While the FII participation increased to 15% in
FY11 form 12% in FY10 and the proprietary trading segment participation declined to
22% from 26%, the Retail and Domestic Institutional Investor participation remained
stable at around 56% and 7%, respectively in the same period.
Chart 1.1: Equity Broking Turnover – Year wise
32
The year-on-year changes in the brokerage volumes at the exchanges have been
quite volatile indicating the inherent volatile nature of the capital markets. The
average daily turnover3 in the equities segment stood at Rs 1.32 lakh crores
witnessing a growth of 38% in FY11. As the number of trading days was higher in
FY11 than in FY10, the rise in the total volumes at the exchanges is higher than the
rise in the average daily turnover.
Chart 1.2: Y-o-Y growth – Equity Brokerage Turnover
However the more lucrative cash market volumes continue to fall
Equity brokerage volumes in the cash market have seen a continuous decline from
its peak in Q2FY10 with the average daily trading volumes (BSE and NSE
combined) in the cash segment at Rs 16,115 crores in Q4FY11 as compared to Rs
24,085 crores in Q2FY10. Accordingly, the share of the cash segment at the
exchanges declined from 26% in Q2FY10 to ~10% in Q4FY11. In Q4FY11, the
options segment contributed to 65% of the total turnover while the futures segment
contributed the balance 25%. The total volumes declined in Q1FY12 with further fall
in the proportion of cash trades.
33
Chart 1.3: Equity Brokerage Turnover – Quarter wise
In terms of trading activity in the market, it declined in the cash segment with both
decline in the number of trades and the trade size at the NSE and BSE. The average
trade size declined 7.3% y-o-y and stood at Rs 22,365 in FY11 as compared to Rs
24,115 in FY10.
Chart 1.4: Total number of trades– cash segment
34
Literature review
What is a mutual fund?
Mutual fund is a mechanism for pooling the resources by issuing to the investors and
investing funds in securities in accordance with objectives as disclosed in offer
document.
Investments in securities are spread across a wide cross-section of industries and
sectors and thus the risk is reduced, Diversification reduces the risk because all
stocks may not move in the same direction in the same proportion at the same time.
Mutual fund issues units to the investors in accordance with quantum of money
invested by them. Investors of mutual funds are known as unit holders.
The profits or losses are shared by the investors in proportion to their investment.
The mutual funds normally come out with a number of schemes with different
investment objectives which are launched from time to time. A mutual fund is
required to be registered with Securities and Exchange Board of India (SEBI) which
regulates securities markets before it can collect funds from the public.
Mutual fund is a collection of stocks and / bonds. A mutual fund as a company brings
together a group of people and invests their money in stocks, bonds and other
securities. Each investor owns shares, which represent a portion of the holdings of
the fund.
With increased uncertainties or fluctuations in the primary market and decreasing
bank interest rates, mutual funds are gaining popularity day by day Now-a- day’s
mutual funds are performing well will high returns to the investors. There are various
types of schemes and plans available to all type of investors.
Let us assume that you inertia million rupees over night and want to invest the same
to get better returns you can consider the following investment avenues that are
popular in Indian context
35
 Company shares
 Fixed deposits in banks
 Government bonds
 Fixed deposits in NBFC
 Chit fund
 Real estate
 Other local money lending options
Types of Funds:
Mutual funds also come in various sizes and shapes. There are about dozen fund
classes but all of them are derivatives of three basic classes are as follows.
 Growth
 Income
 Liquidity
Growth: Long term growth, since these funds invest in equities, they are also
called as equity funds. Their risk level is high so is the return.
Income: This type of fund provides regular income by investing in debt instruments
like bonds, debentures etc., Because of their nature of investment, they are also
called debt schemes. Their risk and return levels are medium.
Liquidity: These are primarily invested in money market instruments and thus
most volatile, safer and give lower returns. These funds are also known as cash or
money market funds.
36
Table 2.1 Pros and cons of the investments:
Risk
Return
Effort required to
track/maintain
investment
Investment
SNO.
Avenue
1.
Company shares
and stocks
High
High
High
2.
Fixed deposits in
banks
Low
Low
Low
3.
Govt. bonds
Medium
Medium
Medium
4.
Fixed deposits in
NBFC
High
Medium
Medium
5.
Chit funds
High
Medium
Medium
6.
Real estate
Medium
Medium
Medium
7.
Other money
lending options
Medium
Medium
Depends
Table 2.2 Funds allocation
Funds
Invest in Area
Is an investment blend of equity and debt
Balanced fund
Instruments
Invest in the company that Participates in
Index fund
stock market indices in the same weight
age comprising of an index
Invests in companies pertaining to
Sector fund
specific sectors like health care, banking,
FMCG, technology etc
Invest in government bonds and
Ells / Tax funds
generally long term in nature. They
provide tax benefits.
37
These are called mutual fund schemes. It is based on the investment objective.
There is another Classification based on the capitalization of funds. If the fund offers
purchase or selling on a Continuous basis it is called open ended mutual fund. On
the contrary, if the fund is open only for a particular period, it is called closed ended
fund. Open ended funds gained popularity because of their flexibility and variety of
features they offer. For this reason, majority of the mutual funds are ‘open’ in nature.
Table 2.3 Differences between Open ended and Closed ended funds
SNO.
Feature
Open ended
Closed ended
1.
Capitalization
Unlimited
Limited
2.
Any time entry
Yes
No
3.
Any time exit
Yes
No
4.
Tax advantage
Yes
No
No
5.
Available for a fixed period
(with exemption of
FMP schemes)
Yes
6.
Listed on the exchange
Generally No
Yes
Net Asset Value:
A unit is basic measure of investment n a mutual fund.
Each scheme / plan will have a different market value is called the Net asset value or
simply NAV. Since market value of the underlying securities changes every day,
NAV of a scheme also varies on a day to day basis.
NAV = Total assets – Total liabilities/Number of units
38
Table 2.4 International Funds:
These funds are invested in both domestic and overseas operations.
OBJECTIVE
TYPE
Money Market
Open Ended
TIME
PERIOD
RISK
PROFILE
EQUITY
(%)
DEBT
(%)
MONEY
MARKET
INST. /
OTHERS
(%)
Low
0
0-20
80-100
0
80-100
0-20
80-100
0-20
0-20
0-60
0-40
0-20
80-100
80-100
0-20
Short
Term
Medium –
Low to
Income
Open Ended
Long
Medium
Term
Long
Growth
Open Ended
High
Term
Long
Balanced
Medium
Open Ended
Term
to High
Long
Tax Saving
Open Ended
High
Term
39
Reasons for the Advantages:
 Security and reduced risk.
 Availability of expert advice of professional management.
 Diversification of portfolio for best returns.
 Automatic investment of returns.
 Best selection and timing of investment through professional approach.
 Liquidity of investment.
 Such invest promote savings habit.
 Tax shelter from various taxes.
 Safety because for government regulation.
 Economies of scale, which maximize returns and minimizes cost.
 Saving schemes of mutual funds.
Reasons for Rise and Downfall of Price:
1.
Government policies
2.
Natural calamities
3.
Management of performance
4.
Internal and external factor
5.
Political reasons
BENEFITS OF INVESTING IN MUTUAL FUNDS
Its seems strange to compare mutual funds to stocks since mutual funds are
primarily composed of stocks, but it is important to distinguish the two because there
are some notable advantages to using mutual funds.
40
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 companied 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 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 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.
41
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
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 manger’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 variety of schemes that will suit your needs over a life time.
When you enter a new stage in your life, all you need to do is sit down with your
investment advisor who will help you to rearrange your portfolio to suit your altered
lifestyle.
42
Get Focused:
Investing in individual stocks can be fun because each company has a unique story.
However, it is important for people to focus on making money. Investing isn't a game.
Your financial future depends on where you put you hard earned dollars and it
shouldn't be taken lightly.
Even if some of us are better at picking stocks than a professional and their support
staff, most of us would not want to spend the amount of time it takes to watch,
research and trade the market on a daily basis
Efficiency:
By pooling investors' monies together, mutual fund companies can take advantage of
economies of scale. With large sums of money to invest, they often trade
commission-free and have personal contacts at the brokerage firms.
Ease for use:
Can you imagine keeping track of a portfolio consisting of hundreds of stocks. The
bookkeeping duties involved with stocks are much more complicated than owning a
mutual fund. If you are doing your own taxes, or are short on time, this can be a big
deal.
Well Regulated:
All mutual funds are registered with SEBI and they function with in the provision of
strict regulations designed to protect the interests of investors. The operations of
Mutual funds are regularly monitored by SEBI.
43
TYPES OF RISKS
All investment involves some form of risk. Even an insured bank account is subject
to the possibility that inflation will rise faster than your earning, leaving you with less
real purchasing power than when you started (Rs. 1000 gets you less than it got your
father when he was your age). Consider these common types of risk and evaluate
them against potential rewards when you select an investment.
Market Risk:
At times the prices or yields of all the securities in a particular market rise or fall due
to broad outside influence. When this happen, the stock prices of both an
outstanding, highly profitable company and a fledgling corporation may be affected.
This change in price is due to “market risk”.
Inflation Risk:
Sometimes referred to as “loss of purchasing power”. Whenever inflation sprints
forward faster than earnings on your investment, you run the risk that you’ll actual be
able to buy less, not more. Inflation risk also occurs when prices rise faster than your
returns.
Credit Risk:
In short, how stable is the company or entity to which you lend your money when you
invest. How certain are you that it will able to pay the interest you are promised, or
repay your principal when the investment matures?
Interest Risk:
Changing interest rates affect both equities and bonds in many ways. Investors are
reminded that “predicting” which way rates wick go is rarely successful. A diversified
portfolio can help in offsetting these changes.
44
HOW TO INVEST IN MUTUAL FUNDS
Step One - Identify your investment needs. Your financial goals will vary, based on
your age, lifestyle, financial independence, family commitments, level of income and
expenses among many other factors. Therefore, the first step is to assess your
needs.
Begin by asking yourself these questions:
l. What are my investment objectives and needs?
Probable Answers: I need regular income or need to buy a home or finance a
wedding or educate my children or a combination of all these needs.
2. How much risk am I willing to take?
Probable Answers: I can only take a minimum amount of risk or I am willing to accept
the fact that my investment value may fluctuate or that there may be a short-term
loss in order to achieve a long-term potential gain.
3. What are my cash flow requirements?
Probable Answers: I need a regular cash flow or I need a lump sum amount to meet
a specific need after a certain period or I don't require a current cash flow but I want
to build my assets for the future. By going through such an exercise, you will know
what you want out of your investment and can set the foundation for a sound Mutual
Fund investment strategy.
Step Two - Choose the right Mutual Fund.
Once you have a clear strategy in mind, you now have to choose which Mutual Fund
and scheme you want to invest in. The offer document of the scheme tells you its
objectives and provides supplementary details like the track record of other schemes
managed by the same Fund Manager. Some factors to evaluate before choosing a
particular Mutual Fund are:
45
 The track record of performance over the last few years in relation to the
appropriate yardstick and similar funds in the same category.
 How well the Mutual Fund is organised to provide efficient, prompt and
personalized service.
 Degree of transparency as reflected in frequency and quality of their
communications.
Step Three - Select the ideal mix of Schemes. Investing in just one Mutual Fund
scheme may not meet all your investment needs. You may consider investing in a
combination of schemes to achieve your specific goals.
The following charts are useful in selecting a combination of schemes that satisfy
your needs
Aggressive Plan
Growth Scheme
IncomeScheme
5%
Money market Scheme
Balanced Scheme
10%
15%
70%
Chart 2.1 Aggressive Plan
This plan may suit
 Investor seeking Income & moderate growth.
 Investor looking for growth & stability with moderate risk
46
Conservative Plan
Growth Scheme
IncomeScheme
Money market Scheme
10%
Balanced Scheme
10%
30%
50%
Chart 2.2 Conservative plan
This plan may suit Retired & other investor who needs to preserve capital & earn
regular income
Step Four - Invest regularly for most of, the approach that works best is to invest a
fixed amount at specific intervals, say every month. By investing a fixed sum each
month, you buy fewer units when the price is higher and more units when the price is
low, thus bringing down your average cost per unit. This is called rupee cost
averaging and is a disciplined investment strategy followed by investors all over the
world. With many open-ended schemes offering systematic investment plans, this
regular investing habit is made easy for you.
Step Five - Keep your taxes in mind as per the current tax laws, Dividend/Income
Distribution made by mutual funds is exempt from Income Tax in the hands of
investor. Further, there are other benefits available for investment in Mutual Funds
under the provisions of the prevailing tax laws. You may therefore consult your tax
advisor or Chartered Accountant for specific advice to achieve maximum tax
efficiency by investing in Mutual Funds
47
Step Six- Start early It is desirable to start investing early and stick to a regular
investment plan. If you start now, you will make more than if you wait and invest
later. The power of compounding lets you earn income on income and your money
multiplies at a compounded rate of return.
Step Seven -The final step all you need to do now is to get in touch with a Mutual
Fund or your agent/broker and start investing. Reap the rewards in the years to
come. Mutual Funds are suitable for every kind of investor-whether starting a career
or retiring, conservative or risk taking, growth oriented or income seeking.
RIGHTS FOR A MUTUAL FUND HOLDER
As a unit holder in a Mutual Fund scheme coming Under the SEBI (Mutual Funds)
Regulations, you are entitled to:
1. Receive unit certificates or statements of accounts confirming your title within 30
days from the date of closure of the subscription under open-end schemes or within
6 weeks from the date your request for a unit certificate is received by the Mutual
Fund.
2. Receive information about the investment policies, investment objectives, financial
position and general affairs of the scheme.
3. Receive dividend within 30 days of their declaration and receive the redemption or
repurchase proceeds within 10 days from the date of redemption or repurchase.
4. Vote in accordance with the Regulations to change the Asset Management
Company, wind up the schemes.
5. Inspect the documents of the Mutual Funds specified in the scheme's offer
document. In addition to your rights, you can expect the Following from mutual fund.
To publish their NAV, in accordance with the regulations daily in case of open-ended
schemes and once a week, in case of close ended schemes. To disclose your
schemes' entire portfolio twice a year, unaudited financial results half yearly and
audited annual accounts once a year. In addition many mutual funds send out
newsletters periodically. To adhere to a Code of Ethics which require that investment
decisions are taken in the best interests of the unit holders.
48
CHAPTER 3
Research Methodology:
To fulfill the objective of the study both primary and secondary data has been
collected. Primary data is the data collected specifically for the study. Data is
collected directly from people and organizations via questionnaires or surveys before
being analyzed to reach conclusions concerning the issues covered in the
questionnaire or survey.
In this study primary data was collected through interaction with staff of FUTURE
CAPITAL SECURITIES LTD.
Secondary data is the data collected which can be analyzed and interpreted
according to requirements. For example, sources of secondary data are government
publications, newspapers, World Wide Web.
In this study the Secondary data is mainly taken from
 The company’s training material.
 Reconciliation statements
 Other documents generated within the organization
49
CHAPTER 4:-
Data Collection:
The Methodology used for collecting information is through secondary data. Source
Of data: Collecting the data from the Funds Fact sheet, data sheets and World Wide
Web. Various Websites has given information of their Latest NAV (NET ASSEST
VALUE), Portfolio and assets allocation of each Mutual Fund.
Limitations of the study:
1. The main limitation of Mutual Fund is that it takes time to invest money.
Unfortunately most mutual Funds receive money when markets are in boom phase
and investors are willing to try out Mutual Funds.
2. Since it is difficult to invest all Funds in one day there is some money waiting to be
invested. Further, there may be a time lag between investment opportunities are
identified.
3. The other limitation of a Mutual Fund is the trading limitation, where the Funds are
highly liquid in general most Mutual Funds (called open-ended Funds) cannot be
bought or sold in the middle of the trading day. Investors can only buy and sell them
at the end of the day, after they have calculated value of their holdings.
4. The portfolios of the Funds do not remain constant. The extent to which the
portfolios changes is a function of the style of the individual Fund manager.
5. It is also dependent of the volatility of the Fund size, i.e. whether the Fund is
constantly receives fresh subscriptions and redemptions.
50
Analysis & Interpretation
ANALYSIS OF MUTUAL FUND SCHEMES:
Mutual funds of the type equity are analyzed in the study, equity funds are volatile
and subject to market risks, analysis is conducted from 30-04-2012 to 14-06-2012,
where the trend of the equity funds of various AMC’s AXIS BANK, ICICI BANK,
RELIANCE MUTUAL FUND, FRANKLIN TEMPLTON funds are studied.
1. AXIS MUTUAL FUND:
Axis Bank was the first of the new private banks to have begun operations in 1994,
after the Government of India allowed new private banks to be established. The
Bank was promoted jointly by the Administrator of the specified undertaking of the
Unit Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and General
Insurance Corporation of India (GIC) and other four PSU insurance companies, i.e.
National Insurance Company Ltd., The New India Assurance Company Ltd., The
Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The
Bank as on 31st March, 2011 is capitalized to the extent of ` 410.54 crores with the
public holding (other than promoters and GDRs) at 53.60%.
The Bank's Registered Office is at Ahmedabad and its Central Office is located at
Mumbai. The Bank has a very wide network of more than 1281 branches (including
169 Service Branches/CPCs as on 31st March, 2011). The Bank has a network of
over 6270 ATMs (as on 31st March, 2011) providing 24 hrs a day banking
convenience to its customers. This is one of the largest ATM networks in the country.
51
Table 3.1 KEY INFORMATION
Mutual Fund
Axis Mutual Fund
Setup Date
Sep-04-2009
Incorporation Date
Jan-13-2009
Sponsor
Axis Bank Limited
Trustee
Axis Mutual Fund Trustee Limited
Chairman
Dr. T. C. Nair
CEO / MD
Mr. Rajiv Anand
CIO
Mr. Chandresh Nigam
Compliance Officer
Mr. Miten Chawda
Assets Managed
Rs. 8814.94 crore (Mar-31-2012)
Table 3.2 Scheme Highlights
Mutual Fund
Axis Equity Fund
Scheme Name
Axis Equity Fund
Scheme Type
Open Ended
Scheme Category
Growth
Launch Date
11-NOV-09
Indicate Load Separately
2.25%
Minimum Subscription Amount
Rs. 5,000/-
52
Table 3.3 Investment Pattern
The asset allocation under the Scheme will be as follows
S.No
Asset type
Normal allocation %
1.
Equities & equity related instruments
93.35
2.
Debt & Money market instruments
6.65
Scheme Objective:
To achieve long term capital appreciation by investing in a diversified portfolio
predominantly consisting of equity and equity related securities including derivatives.
Investment in derivatives up to 50% of the net assets of the scheme, investments in
securities lending unto 35% of the net assets of the scheme, investment in foreign
debt instruments unto 35% of the net assets of the scheme, includes investment in
ADR and GRAs issued by companies in India/equity of listed overseas companies as
permitted by SEBI regulations unto 50% of net assets of the scheme.
The scheme shall seek to generate long-term capital growth from an actively
managed portfolio of predominantly equity and equity related instruments. The
scheme portfolio would acquire, interalia, small and medium size businesses with
good long term penitential, which are available at cheap valuations. Such securities
would be identified through disciplined fundamental research keeping in view
medium to long-term trend in the business environment. The scheme shall endeavor
to accumulate long-term investor wealth by opening subscriptions to units during
periods when stocks are available at reasonable valuations. By doing so, the fund
managers would endeavors to prevent short-term money from flowing into the fund
which can prove detrimental to the interests of long-term investor. As the scheme
would be sold to investors with a long-term investment horizon, it is also expected
that the portfolio would remain relatively more insulated to day to day redemption
pressures. The fund will close subscription, once it has collected a predetermined
“manageable corpus (approximate amount), which will be decided by the fund
53
manager of the scheme depending on the available investment opportunities in the
stock market / if the fund manager is of the opinion that investment opportunities
have diminished. Thus the fund manager will endeavor to ensure that there are
sufficient assts available to meet the long-term objectives of the fund.
Table 3.4 Absolute returns
Year
Qtr 1
Qtr 2
Qtr 3
Qtr 4
Annual
2012
12.4
-
-
-
-
2011
-7.2
-0.4
-10.5
-5.3
-22.8
2010
3.4
2.5
13.0
-2.7
17.7
Table 3.5 Absolute Annualized Returns of Axis Equity Fund
Absolute
Relative to
Sensex
Relative to
Nifty
1 Month
3 Months
6 Months
1 Year
Inception
3.78
3.33
9.00
-4.69
0.69
0.28
2.57
2.52
2.99
2.63
-0.01
3.04
1.21
2.00
1.96
Table showing Absolute Annualized Returns of Axis Equity Fund
54
Annualized Returns
10
8
6
4
2
0
-2
Inception
1 Year
6 Months
3 Months
-4
-6
Absolute
Relative to Sensex
Relative to Nifty
Chart 3.1 showing Absolute Annualized Returns of Axis Equity Fund
INTERPRETATION:
It is seen that the absolute annualized returns is 3.78 which has grown from 0.69
from its Inception. This reveals that the returns are increased despite going negative
a year ago it has kept the investors satisfied with expected returns. So that I
conclude it’s a growing performer.
55
Table3.6 Top Holdings (31st May 12) Equity
EQUITY
Sector
Asset %
ITC
Tobacco
6.25
RELIANCE
Oil & Gas
6.25
TCS
Technology
6.15
HDFC BANK
Banking/Finance
6.04
ICICI BANK
Banking/Finance
6.00
INFOSYS
Technology
5.38
SBI
Banking/Finance
4.90
LARSEN
Engineering
3.80
TATA MOTORS
Automotive
2.86
HDFC
Banking/Finance
6.24
PORTFOLIO
TATA MOTORS
HDFC
ITC
RELIANCE
LARSEN
SBI
TCS
INFOSYS
HDFC BANK
ICICI BANK
Chart 3.2 Showing Portfolio and assest %
56
Table 3.7 Sector Allocation (31st May 12)
1-Year
SECTOR
%
High
Low
METALS & MINING
7.83
9.23
3.83
BANKING/FINANCE
26.17
26.17
21.83
TECHNOLOGY
14.55
14.76
9.33
OIL & GAS
8.42
9.53
6.34
AUTOMOTIVE
7.34
8.24
1.44
PHARMACEUTICALS
6.67
7.77
5.38
SECTOR ALLOCATION
9%
11%
10%
METALS & MINING
BANKING/FINANCE
12%
37%
TECHNOLOGY
OIL & GAS
21%
AUTOMOTIVE
PHARMACEUTICALS
Chart 3.3 Showing Sector Allocation
57
Table 3.8 Asset Allocation (%)
Equity
92.03
Others
1.33
Debt
0.00
Mutual Funds
N.A
Money Market
0.00
Cash / Call
6.65
Table 3.9 Concentration
Holdings
(%)
Top 5
30.93
Top 10
53.87
Sector
(%)
Top 3
49.14
Table 3.10 Returns (NAV)
PERIOD
Returns (%)
Rank #
1 MONTH
3.7
54
3 MONTH
-2.5
11
6 MONTH
9.7
42
1 YEAR
-1.6
27
2 YEARS
-2.9
51
58
RETURNS
12
10
8
6
4
RETURNS
2
0
2 Years
1 Year
6 Months
3 Months
1 Month
-2
-4
Chart 3.4 Showing Returns (NAV)
INTERPRETATION:
It is seen that the returns 2 Years ago is -2.9% which has to increased drastically
9.7% during past 6 months. This tells us that the fund is increasing considerably
good with returns of 3.7% on March 31, 2012.
59
2. ICICI PRUDENTIAL MUTUAL FUND:
Managed by ICICI Prudential Asset Management Company, ICICI Prudential Mutual
Fund is a joint venture between Prudential Plc and ICICI Bank. While Prudential Plc
is one of the largest players in insurance and fund management sectors in UK, ICICI
Bank, on the other hand, is India’s second largest bank in the private sector.
Prudential Plc is a dominant player in international financial services group, with
operations spread across Asia, the US, and the UK. ICICI Bank provides numerous
banking products and financial services to both corporate and retail customers
through different delivery channels and specialized subsidiaries in the areas of
investment banking, life and non-life insurance, venture capital, and asset
management. ICICI Prudential Mutual Fund offers plenty of retail and corporate
investment solutions ranging in a variety of asset classes, namely, Equity, Fixed
Income, Real Estate, and Gold.
Table 4.1 KEY INFORMATION
Mutual Fund
ICICI Prudential Mutual Fund
Setup Date
Oct-13-1993
Incorporation Date
Jun-22-1993
Sponsor
Prudential Plc and ICICI Bank Ltd.
Trustee
ICICI Prudential Trust Ltd
Chairman
Ms. Chanda Kochhar
CEO / MD
Mr. Nimesh Shah
60
CIO
Mr. S Naren
Compliance Officer
Ms. Supriya Sapre
Investor Service Officer
Ms. Kamaljeet Saini
Assets Managed
Rs. 68718.50 crore (Mar-31-2012)
Table 4.2 Scheme highlight:
Mutual Fund
Scheme Name
ICICI Prudential Mutual Fund
ICICI Prudential Equity & Derivatives
Fund-Wealth Optimiser Plan
Scheme Type
Open Ended
Scheme Category
Growth
Launch Date
8-Nov-06
Minimum Subscription Amount Rs.5000/Fund manager
Mrs.Deven sangoi
Objective of Scheme: The investment objective of Wealth Optimiser Plan under the
scheme is to seek to provide capital appreciation and income distribution to the
investors by using equity derivatives strategies, arbitrage opportunities and pure
equity investments. The investment objective of the scheme is to seek to generate
low volatility returns by using arbitrage and other derivative strategies in equity
markets and investments in short-term debt portfolio.
61
Table 4.3 Absolute returns
Year
Qtr 1
Qtr 2
Qtr 3
Qtr 4
Annual
2012
2.2
-
-
-
-
2011
2.5
2.0
1.5
1.6
7.9
2010
0.9
1.0
2.1
2.6
6.6
2009
1.5
1.2
1.4
-0.5
4.3
2008
2.4
1.8
1.6
2.5
8.4
2007
2.5
4.2
1.8
1.7
10.9
ANNUAL RETURNS
ANNUAL RETURNS
12
10.9
10
8.4
8
7.9
6.6
6
4.3
4
2
0
2007
2008
2009
2010
2011
Chart 4.1 showing absolute returns of ICICI
INTERPRETATION:
It is seen that the absolute annualized returns is 7.9 which has decline from 10.9
from its Inception. This reveals that the returns are increased steadily despite going
negative a year ago it has kept the hopes to investors with expected increase in
returns. So that I conclude it’s a re-gaining performer.
62
Table 4.4 Top Holdings (31st May 12)
EQUITY
Sector
Asset %
ABG SHIPYARD
Services
8.18
BHARAT FORGE
Manufacturing
5.98
PANTALOON RET
Retail & Real Estate
5.90
TATA POWER
Utilities
5.68
STERLITE IND
Metals & Mining
4.86
BALRAMPUR CHINI
Food & Beverage
4.70
BAJAJ AUTO
Automotive
4.59
POWER GRID CORP
Utilities
3.87
TATA GLOBAL BEV
Food & Beverage
2.94
PORTFOLIO
8%
ABG SHIPYARD
6%
18%
BHARAT FORGE
10%
13%
PANTALOON RET
TATA POWER
10%
STERLITE IND
13%
10%
12%
BALRAMPUR CHINI
BAJAJ AUTO
POWER GRID CORP
TATA GLOBAL BEV
Chart 4.2 Showing Portfolio and assest %
63
Table 4.5 Sector Allocation (31st May 12)
1-Year
Sector
%
High
Low
Metals & Mining
9.62
16.26
2.94
Utilities
9.55
11.35
4.25
Services
8.18
11.90
3.85
Automotive
15.12
15.12
5.93
Food & Beverage
7.64
7.64
1.73
Manufacturing
5.98
6.17
2.62
SECTOR ALLOCATION
11%
17%
14%
Metals & Mining
17%
Utilities
Services
Automotive
27%
14%
Food & Beverage
Manufacturing
Chart 4.3 Showing Sector Allocation
64
Table 4.6 Asset Allocation (%)
Table 4.7 Concentration
Equity
64.90
Holdings
(%)
Others
0.00
Top 5
36.27
Debt
4.52
Top 10
57.23
Mutual Funds
N.A
Money Market
0.00
Cash / Call
30.57
Table 4.8 Returns (NAV as on Jun-15-2012)
PERIOD
Returns (%)
Rank #
1 MONTH
0.9
7
3 MONTH
3.3
1
6 MONTH
5.4
5
1 YEAR
8.3
12
2 YEARS
8.9
1
3 YEARS
7.0
1
5 YEARS
7.2
4
65
RETURNS
10
9
8.9
8.3
8
7
7.2
7
6
5.4
5
RETURNS
4
3.3
3
2
1
0.9
0
5 Years
3 Years
2 Years
1 Year
6 Months 3 Months
1 Month
Chart 4.4 Showing Annualized Returns
INTERPRETATION:
It is seen that the returns of past 5 Years is 7.2% which has to increased consistently
for 4 Years by reaching 8.9% a year ago and there after it has not performed as
expected by declining to worst of 0.9% a month ago. This tells us that the fund is
decreasing drastically; this fund is performing very low since its inception. It’s a nonperforming fund.
66
3. RELIANCE EQUITY FUND:
Reliance Mutual Fund (RMF) is the biggest Mutual Fund house in India. It has has
been sponsored by Reliance Capital Ltd (RCL). RCL has been promoted by
Reliance Industries Ltd., one of India's largest private sector enterprise. Reliance
Capital Asset Management Ltd manages the investments of Reliance Mutual Fund.
Table 5.1 KEY INFORMATION
Mutual Fund
Reliance Mutual Fund
Setup Date
Jun-30-1995
Incorporation Date
Feb-24-1995
Sponsor
Reliance Capital Limited
Trustee
Reliance Capital Trustee Co. Ltd.
CEO / MD
Sundeep Sikka
Compliance Officer
Mr. Muneesh Sud
Investor Service Officer
Mr. Bhalchandra Joshi
Assets Managed
Rs. 78111.79 crore (Mar-31-2012)
Table 5.2 Scheme highlights
Mutual Fund
Reliance Mutual Fund
Scheme Type
Open Ended
67
Scheme Category
Growth
Launch Date
6-Feb-06
Minimum Subscription Amount
Rs 5000/-
Fund manager
Mr. SUNIL SINGHANIA
Objective of Scheme:
The primary investment objective of the scheme is to seek to generate capital
appreciation & provide long term growth opportunities by investing in a portfolio
constituted of equity & equity related securities of top 100 companies by market
capitalization & of companies which were available in the derivatives segment from
time to time and the secondary objective is to generate consistent returns by
investing in debt and money market securities
Table 5.3 Absolute returns
Year
Qtr 1
Qtr 2
Qtr 3
Qtr 4
Annual
2012
21.2
-
-
-
-
2011
-7.3
2.7
-8.8
-8.5
-21.8
2010
5.5
-
-
-
5.5
2009
-6.4
47.5
27.4
-0.2
103.8
2008
-31.8
-14.2
-1.3
-21.2
-56.0
2007
-
-
8.5
26.1
37.6
68
ANNUAL RETURNS
150
ANNUAL RETURNS
103.8
100
50
37.6
5.5
0
2007
2008
-50
2009
2010
2011-21.8
-56
-100
Chart 5.1 Showing Annual Returns
INTERPRETATION:
It is seen that the absolute annualized returns is 37.6 which is declined to -5.6 in
2008 but an outstanding regain in the year 2009 with returns of 103.8. This reveals
that the returns are increased despite going negative a year ago but it has not kept
the momentum and dropped drastically to -21.8. So that I conclude it’s a below
average performer fund.
Table 5.4 Top Holdings (31st May 12)
Equity
Sector
Asset %
Divis Labs
Pharmaceuticals
7.11
SBI
Banking/Finance
6.44
Infosys
Technology
4.43
ICICI Bank
Banking/Finance
3.88
Trent
Retail & Real Estate
3.57
69
Maruti Suzuki
Automotive
3.53
Aventis Pharma
Pharmaceuticals
3.30
Hathway Cable
Media
3.22
Larsen
Engineering
2.91
Persistent
Technology
2.84
PORTFOLIO
8%
8%
Divis Labs
18%
SBI
9%
Infosys
17%
9%
ICICI Bank
Trent
9%
12%
10%
Maruti Suzuki
Aventis Pharma
Hathway Cable
Larsen
Chart 5.2 Showing Portfolio and assest %
70
Table 5.5 Sector Allocation (May 31, 12)
1-Year
Sector
%
High
Low
Pharmaceuticals
14.83
15.91
9.91
Technology
13.83
15.25
10.96
Banking/Finance
12.78
12.78
8.13
Automotive
8.77
12.28
7.86
Retail & Real Estate
8.42
8.42
5.47
Engineering
8.24
8.57
6.65
Sector Allocation
12%
22%
Pharmaceuticals
13%
Technology
13%
21%
19%
Banking/ Finance
Automotives
Retail & Real Estate
Engineering
Chart 5.3 Showing Sector Allocations
71
Table 5.6 Asset Allocation (%)
Table 5.7 Concentration
Equity
87.72
Holdings
(%)
Others
8.03
Top 5
25.43
Debt
0.00
Top 10
41.23
Mutual Funds
N.A
Money Market
0.00
Cash / Call
4.24
Table 5.8 Returns (NAV as on Jun-15-2012)
Period
Returns (%)
Rank #
1 month
3.3
52
3 month
-0.3
4
6 month
18.9
1
1 year
0.9
4
2 years
-
45
3 years
-22.8
89
72
Returns (%)
25
20
18.9
15
10
5
0
-5
3.3
0.9
3 Years
1 Year
6 Months
-0.3
3 Months
Returns %
1 Month
-10
-15
-20
-25
-22.8
Chart 5.4 Showing NAV Analysis of RELIANCE Equity Fund
INTERPRETATION:
It is seen that the returns of past 3 Years is -22.8% which has to increased
consistently for 2 Years by reaching 18.9% 6 months ago and there after it has not
performed as expected by declining to -0.3% a month ago. This tells us that the fund
is decreased drastically; this fund is performing very low but expected to grow, It’s a
average performing fund.
73
4. Franklin Templeton Mutual Fund
Franklin Templeton's association with India dates back to more than a decade as an
investor. As part of the group's major thrust on investing in markets around the world,
the India office was set up in 1996 as Templeton Asset Management India Pvt.
Limited. It flagged off the mutual fund business with the launch of Templeton India
Growth Fund in September 1996, and since then the business has grown at a steady
pace.
In July 2002, Franklin Templeton India acquired Pioneer ITI, another leading fund
house in India to create an organization with rich investment experience over market
cycles, one of the most comprehensive product portfolios, footprint across the
country and an in-house shareholder servicing function. The huge synergies that
existed in the two organizations have helped the business grow at a rapid pace,
catapulting the company to among the top two fund houses in India.
Table 6.1 KEY INFORMATION
Mutual Fund
Franklin Templeton Mutual Fund
Setup Date
Feb-19-1996
Incorporation Date
Oct-06-1995
Sponsor
Templeton International Inc.
Trustee
Franklin Templeton Trustee Services
74
CIO
Mr. R. Sukumar / Mr. Santosh
Compliance Officer
Ms. Shilpa Shetty
Investor Service Officer
Ms. Sheela Kartik
Assets Managed
Rs. 34492.68 crore (Mar-31-2012)
Table 6.2 Scheme Highlights
Category:
Equity
Sub-Category:
Equity-Diversified
Type:
Open
Min. Investment(Rs):
5000
Total Assets(Rs./Mn):
17271.09
Registrars:
Launch Date:
Franklin Templeton Asset
Management
09-AUG-94
Scheme Objective:
An open end growth scheme with an objective to provide growth of capital plus
regular dividend through a diversified portfolio of equities, fixed income securities
and money market instruments.
75
Table 6.3 Absolute Returns (in %)
Year
Qtr 1
Qtr 2
Qtr 3
Qtr 4
Annual
2012
14.6
-
-
-
-
2011
-3.6
-0.4
-7.0
-5.7
-17.1
2010
3.4
0.2
16.0
-3.4
18.4
2009
-4.0
40.1
15.3
7.2
69.5
2008
-25.3
-13.1
5.1
-21.1
-47.7
2007
-4.6
21.9
13.4
18.8
53.0
Table 6.4 Returns Analysis
1 month 3 months 6 months
1 year
3 years
Inception
Absolute
3.35
-3.02
8.67
-3.07
9.73
18.76
Relative Sensex
-2.39
-0.06
-0.74
2.69
5.47
18.76
Relative to Nifty
-2.43
0.34
-1.81
1.71
5.34
18.76
76
Annualized Returns
20
15
10
5
0
-5
Absolute
Relative to Sensex
Relative to Nifty
Chart 6.1 showing Absolute Annualized Returns of Franklin Templeton Fund
INTERPRETATION:
It is seen that the absolute annualized returns is 18.76 which is declined to -3.07 in
past year but an outstanding regain within 6 months with returns of 8.67, this reveals
that the returns are increased despite going negative but it is not consistent through
out. So that I conclude it’s a below average performer fund.
Table 6.5 Top Holdings
Equity
Sector
Value (Rs cr)
Asset %
INFOSYS
Technology
127.36
7.37
BHARTI AIRTEL
Telecom
119.64
6.93
ICICI BANK
Banking/Finance
119.21
6.90
HDFC BANK
Banking/Finance
87.28
5.05
77
GRASIM
Conglomerates
67.51
3.91
KOTAK MAHINDRA
Banking/Finance
51.72
2.99
INDUSIND BANK
Banking/Finance
49.12
2.84
RELIANCE
Oil & Gas
49.07
2.84
BOSCH
Automotive
46.89
2.71
Dr.REDDY LABS
Pharmaceuticals
46.63
2.70
PORTFOLIO
7%
6%
INFOSYS
18%
BHARTI AIRTEL
7%
ICICI BANK
7%
17%
9%
HDFC BANK
GRASIM
KOTAK MAHINDRA
12%
17%
INDUSIND BANK
RELIANCE
BOSCH
Chart 6.2 Showing Portfolio and Assests %
78
Table 6.6 Sector Allocation (May 31, 12)
1-Year
Sector
%
High
Low
Banking/Finance
19.57
21.46
14.65
Pharmaceuticals
10.31
10.31
4.95
Automotive
9.45
10.42
8.34
Technology
8.94
13.95
8.63
Telecom
8.55
12.95
8.17
Oil & Gas
8.05
10.11
7.44
SECTOR ALLOCATION
12%
13%
30%
Banking/Finance
Pharmaceuticals
Automotive
14%
16%
15%
Technology
Telecom
Oil & Gas
Chart 6.3 Showing Sector Allocation
79
Table 6.7 Asset Allocation (%)
Equity
94.57
Others
0.08
Table 6.8 Concentration
Holdings
(%)
Top 5
30.17
Top 10
44.26
Debt
0.06
SMutual Funds
N.A
Money Market
0.00
Sector
(%)
Cash / Call
5.30
Top 3
39.33
Table 6.9 Returns (NAV as on Jun-15-2012)
Period
Returns (%)
Rank #
1 month
3.4
50
3 month
-3.0
32
6 month
8.7
62
1 year
-3.1
21
2 year
2.6
12
3 year
9.7
33
5 year
7.3
23
80
Returns (%)
12
10
8
9.7
8.7
7.3
6
4
3.4
2.6
2
0
5 Years
3 Years
2 Years
1 Year
6 Months
3 Months
1 Month
-2
-3.1
-3
-4
Chart 6.4 Showing NAV Analysis of FRANKLIN TEMPLETON Equity Fund
INTERPRETATION:
It is seen that the returns of past 5 Years was 7.3% which has to increased to 9.7%
but dropped a lot in past 1 year to -3.1 but within no time regained its position to
8.7% but unfortunately gone in negative -3% within 3 months again seen a slightly
increase to current position of 3.4%. This tells us that the fund is fluctuating a lot
which is a good sign for aggressive investors for short term gains, this has created a
W shaped graph which is seen as a double dip recession, and this fund is an above
average performing fund.
81
Table 7.1 NAVs of various FUND Schemes
SECTOR
DATE
1st June 2012
2nd June 2012
3rd June 2012
4th June 2012
5th June 2012
6th June 2012
7th June 2012
8th June 2012
9th June 2012
10th June 2012
11th June 2012
12th June 2012
13th June 2012
14th June 2012
15th June 2012
16th June 2012
17th June 2012
18th June 2012
19th June 2012
20th June 2012
21st June 2012
22nd June 2012
23rd June 2012
24th June 2012
25th June 2012
BANKING
AXIS
N.B.F.C
ICICI
FRANKLIN
TEMPLETON
RELIANCE
82
Comparison of NAVs of various FUND Schemes
Chart 7.1 showing NAV’s of various fund schemes
INTERPRETATION:
83
CHAPTER 5:Finding:
Recommendation
CONCLUSIONS:
1. From the findings of Axis equity fund, we can analyze that fund is growing
performer and expected to grow over years; the fund is increasing
considerably good with returns as on March 31, 2012.
2. From the findings of I.C.I.C.I equity fund we can analyze that the returns are
increased steadily despite going negative a year ago it has kept the hopes to
investors with expected increase in returns. So it’s a re-gaining performer.
3. From the findings of Reliance equity fund we can analyze that the returns are
increased despite going negative a year ago but it has not kept the
momentum and dropped drastically to -21.8. So that I conclude it’s a below
average performer fund.
4. From the findings of ICICI equity fund we can analyse that the returns are
increased despite going negative but it is not consistent throughout, so that I
conclude it’s a below average performer fund.
5. Comparing of various schemes on the basis of annualized returns that among
the equity based fund, AXIS equity fund and ICICI equity fund, both funds are
considerably growing this indicates there is a good sign for investors to invest
in banking sector, whereas Franklin Templeton equity fund and Reliance
equity fund, annualized returns show that both the equity fund had less
returns since inception of the fund and can be said has good fund than the
other three funds.
6. Comparative analysis of NAV revels that AXIS equity is performing
good
when compared to ICICI equity fund, Reliance equity fund and Franklin
Templeton equity fund. While Reliance equity is average performer and
Franklin Templeton equity find is above average performer. Therefore we can
conclude that Reliance equity fund is better fund than Franklin Templeton
equity fund, ICICI equity fund and Axis equity fund.
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Bibliography:
Books Referred:
Web Sites referred:
www.nseindia.com
www.moneycontrol.com
www.amfi-india.com
www.livemint.com
www.vfmdirect.com
www.buzzingstock.com
www.fxcmstocktrading.com
www.myiris.com