Beruflich Dokumente
Kultur Dokumente
CONTENTS 1.OVERVIEW OF ORGANIZATION KARVY 2.MISSION & VISION OF KARVY 3.KARVY GROUP OF COMPANIES 4.INTRODUCTION TO MUTUAL FUNDS 5.TYPES OF MUTUAL FUNDS 6.ADVANTAGES & DISADVANTAGES OF MUTUAL FUNDS 7.MAJOR MUTUAL FUNDS COMPANIES IN INDIA 8.QUANTITATIVE ANALYSIS OF MUTUAL FUNDS
VISION OF KARVY
To be pioneering financial services company. And continue to grow at a healthy pace, year after year, decade after decade.
MUTUAL FUNDS
A MUTUAL FUND scheme collects money from various investors and this pool of money is then invested in different asset classes _ equity and debt primarily. The income earned through these investments and the capital appreciation realized are shared by unit holders in proportions to the numbers of units hold by them.
MARKET SHARE
DSP BLACK ROCK MORGAN&STANLEY 8% 7% FRANKLIN 10% ICICI 15% UTI 20%
QUANTITATIVE
STANDARD DEVIATION BETA BETA = COV/S.D SHARPEs RATIO SHARPE RATIO = Rf-Rr/ S.D
Fund Class Fund Type Ranking Benchmark Performance Returns as on Jun 08, 12 3 Months 6 Months 1 Year 2 Years 3 Years
5 Years
8.6%
10.6%
2.7%
PERFORMANCE 3D CHART
15.00%
10.00%
5.00% SBI HDFC 3 Months -5.00% FRANKLIN 6 Months 1 Year 2 Years ICICI 3 Years 5 Years
ICICI
FRANKLIN
HDFC SBI
0.00%
-10.00%
RETURN OF FUND
RETURN OF BENCHMARK/MARKET
1.2 -5 2.5 -8.3
2 3 4 5 6 7
5.8
12.2 13.2
0.8
4.6 4.1
-5
-10
Rf
Rm
Rfmeanf(X)
1.2 -5 2.5 -8.3 0.8 4.6 -2.11429 -8.71429 -0.61429 -8.01429 1.885714 8.285714
RmX.Y meanm(Y)
1.21429 -4.98571 2.51429 -8.28571 0.81429 4.61429 -2.56736 43.4469 -1.54449 66.40405 1.535518 38.23269
Y^2
2
-4.8
3
3.3
4
-4.1
5
5.8
6
12.2
7
13.2
4.1
9.285714
4.11429
38.20412
16.92738
N=7
MEANf= 3.914286
MEANm=0.01429
183.7114
140.1886
Cov
= = =
BETA
SHARPES RATIO = Rf-Rr/ S.D (Rr= Risk free returns of Government securities) (Given Rr= -11.426) = 3.914286-(-11.426)/23.36 = 0.65 TREYNOR MEASURE= Rf-Rr/ BETA = =
3.914286-(-11.426)/1.31 11.71
-15
Rf
Rm
RfRmMEANf(X) MEANm(Y)
1 -4.5 1.4 -0.95714 -7.75714 1.342857 1.41429 -4.08571 1.81429
X.Y
Y^2
2
-5.4
3
3.7
4
-5.4
-9.1 0.3
4.5 3.5 -2.9 MEANm= 0.41429
-7.75714 1.342857
7.542857 6.242857
-8.68571 0.71429
4.91429 3.91429
67.37629 0.959189
37.06779 24.43635 162.6157
75.44156 0.51021
24.15025 15.32167 137.4086
5
3.7
6
9.9
7
8.6
TOTAL 16.5
N=7
MEANf= 2.357143
Y^2/ n-1
= =
COV = =
137.4086/6 22.9
X.Y/n-1 162.6157/6 =
27.1
BETA
SHARPE RATIO = Rf-Rr/ S.D (Given Rr= -11.426) = 2.357143-(-11.426)/22.9 = 0.60 TREYNOR MEASURE= Rf-Rr/ BETA = 2.357143-(-11.426)/1.18 = 11.68
RETURN OF FUND
2.7 -5.1 5.7 -8 2.1 10 10.6
RETURN OF BENCHMARK
0.6
-5.4
3 -10.3 -1.5 4.9 3.7
Rf
2.7 -5.1 5.7 -8 2.1 10 10.6
Rm
0.6 -5.4 3 -10.3 -1.5 4.9 3.7 -5 MEANm = 0.71429
Rf-meanf(X) Rmmeanm(Y)
0.128571 -7.67143 3.128571 -10.5714 -0.47143 7.428571 8.028571 1.31429 -4.68571 3.71429 -9.58571 -0.78571 5.61429 4.41429
X.Y
0.16898 35.94609 11.62042 101.3347 0.370406 41.70615 35.44044 226.5871
Y^2
1.727358 21.95588 13.79595 91.88584 0.61734 31.52025 19.48596 180.9886
18 MEANf= 2.571429
Y^2/ n-1 = =
180.9886/6 30.164
COV
BETA
TREYNOR MEASURE=
RETURNS OF FUND
2.3 -2.5 7.3 -5.1 -0.4 3.7 2.7
RETURNS OF BENCHMARK
0.9 -5.3 2.7 -9.5 -0.7 4.6 3.9
2
3 4
5
6 7
Rf
Rm
0.9 -5.3 2.7 -9.5 -1.54286 4.6 3.9 -3.4 MEANm= 0.48571
Rf-meanf(X) Rm-meanm(Y)
1.157143 -3.64286 6.157143 -6.24286 -0.21429 2.557143 1.557143 1.38571 -4.81429 3.18571 -9.01429 0.330619 5.08571 4.38571
X.Y
Y^2
1.603465 1.920192 17.53777 19.61487 56.27492 0.04592 13.00489 6.829178 115.1957 23.17739 10.14875 81.25742 -.070848
2
-2.5
3
7.3
4
-5.1
5 -0.7 6
3.7
7
2.7
Cov
BETA
SHARPE RATIO = Rf-Rr/ S.D (Given Rr= -11.426) =1.142857-(-11.426)/26.94 =0.46 TREYNOR MEASURE= Rf-Rr/ BETA = 1.142857-(-11.426)/0.712 = 17.2
COMPARISION TABLE
FUNDS
S.D BETA SHARPE RATIO TREYNOR MEASURE
INTERPRETATION
1.AS FAR AS STANDARD DEVIATION IS CONCERNED HDFC TOP 200 HAS HIGHEST SD AND SBI BLUE CHIP HAS LOWEST SD ALSO FRANKLIN BLUE CHIP SD IS ALSO LOWEST, ICICI BLUE CHIP S.D IS LYING BETWEEN THESE THREE FUNDS.
2..THEREFORE AS FAR AS RISK CONCERNED HDFC TOP 200 HAS HIGHEST RISK , SBI BLUE CHIP AND FRANKLIN BLUE CHIP HAS LOWEST RISK , ICICI BLUE CHIP HAS RISK SLYGHTLY MORE THAN SBI, AND FRANKLIN BUT MUCH LESS THAN HDFC TOP 200. 3.NOW LOOKING TOWARDS THE BETA OF EVERY FUND WE CAN SAY THAT, ICICI, FRANKLIN, HDFC TOP 200 HAVE BETA MORE THAN 1 WHICH MEANS THESE FUNDS ARE GIVING MUCH MORE AND BETER RETURNS AS COMPARED TO THEIR BENCHMARKS. 4.WHEREAS SBI BLUE CHIPs BETA IS LESS THAN 1 WHICH MEANS THAT IT IS GIVING LESS RETURNS AS COMPARED TO ITS BENCHMARK BSE 100, SO IT IS A UNDERPERFORMING FUND. 5.ICICI BLUE CHIP HAS HIGHEST BETA OF 1.31 WHICH SHOWS THAT IT IS GIVING 31% MORE RETURNS THAN ITS BENCHMARK S&P CNX NIFTY. 6.NOW LOOKING TOWARDS SHARPE MEASURE ICICI AND FRANKLIN BLUE CHIP HAVE GOT HIGHEST VALUE OF SHARPE RATIO , SHARPE RATIO CLEARLY SHOWS THE EXESS RETURNS GIVEN BY A FUND AS AREWRD FOR INVESTING IN RISKY FUNDS , WHILE SHARPE RATIO OF HDFC TOP 200 & SBI BLUE CHIP IS VERY LESS AS SUCH 7.WE CAN SAY THAT LOOKING TOWARDS THE RISK IN INVESTMENT HDFC TOP 200 AND ICICI BLUE CHIP HAS GOT HIGHEST S.D SO HIGHEST RISK BUT ICICI IS GIVING MUCH EXESS RETURNS AS COMPARED TO HDFC TOP 200 WHILE FRANKLIN BEING A LESS RISKY FUND IS ALSO GIVING EXESS RETURNS WHILE SBI IS PERFORMING POORLY. 8.SO FROM INVESTORS POINT OF VIEW IF AN INVESTER IS RISK TAKER HE SHOULD INVEST IN ICICI BLUE WHICH HAS GOT A BIT RISK BUT GIVING BEST AND HIGHEST RETURNS AS COMPARED TO THESE TOP 4 FUNDS OF PURE LARGE CAP EQUITY 9.IF THE INVESTER IS RISK AVERTOR HE SHOULD INVEST IN FRANKLIN BLUE CHIP AS IT HAS LOW RISK BUT GOOD RETURNS.
92.597
Jun-08-2012
2 Years
3 Years 5 Years
2.4%
8.3% 7.7%
1.6%
8.3% 7.5%
PERFORMANCE CHART
10.00%
8.00%
6.00%
4.00%
2.00%
-4.00%
RETURNS OF FUND
RETURNS OF BENCHMARK
1.4 -5 2.5 -8.3 0.8 4.6 4.1
2
-2.8
3
6.5
4
-3.4
5
2.4
6
8.3
7
7.7
0
-2 -4 -6 -8 -10 1 2 3 4 5 6 7
Rf
Rm
1.4 -5 2.5 -8.3 0.8 4.6 4.1 0.1 MEANm= 0.014286
Rf-MEANf(X)
-1.04286 -5.74286 3.557143 -6.34286 -5.9 5.357143 4.757143
Rm-MEANm(Y)
1.385714 -5.01429 10.8 -8.31429 0.785714 4.585714 4.085714
X.Y
-1.4451 28.79633 38.41714 52.73633 -4.63571 24.56633 19.43633 157.8716
Y^2
1.920204 25.14306 116.64 69.12735 0.617347 21.02878 16.69306 149.287
2
-2.8
3
6.5
4
-3.4
5
2.4
6
8.3
7
7.7
COV
BETA
SHARPE RATIO = Rf-Rr/ S.D (Given Rr= -11.426) = 2.942857-(-11.426)/41.86 =0.34 TREYNOR MEASURE= Rf-Rr/ BETA = 2.942857-(-11.426)/0.62 = 23.17
RETURNS OF FUND
RETURN OF BENCHMARK
1 -4.5 1.4 -9.1 0.3 4.5 3.5
2
-2.9
3
6.5
4
-3.1
5
1.6
6
8.3
7
7.5
-10
Rf
Rm
1 -4.5 1.4 -9.1 0.3 4.5 3.5 -2.9
Rf-MEANf(X)
-0.92857 -5.72857 3.671429 -5.92857 -1.22857 5.471429 4.671429
Rm-MEANm(Y)
1.41429 -4.08571 1.81429 -8.68571 0.71429 4.91429 3.91429
X.Y
-1.31327 23.40528 6.661036 51.49385 -0.87756 56.88819 18.28533 154.5429
Y^2
2.000216 16.69303 3.291648 75.44156 0.51021 24.15025 15.32167 137.4086
2
-2.9
3
6.5
4
-3.1
5
1.6
6
8.3
7
7.5
TOTAL N=7
MEANm= -0.41429
Cov
BETA
SHARPE RATIO = Rf-Rr/ S.D (Given Rr= -11.426) = 2.828571-(-11.426)/22.9 = 0.62 TREYNOR MEASURE= Rf-Rr/ BETA = 2.828571-(-11.426)/0.906 = 15.73
COMPARISION TABLE
FUNDS S.D BETA SHARPEs RATIO TREYNOR MEASURE SBI EQUITY
41.6 1.057 0.34 23.17
INTERPRETATION
BY THE ABOVE ANALYSIS WE CAN INTERPRET THAT BOTH THE FUNDS HAVE GOT A VERY LOW STANDARD DEVIATION , BUT STANDARD DEVIATION OF TATA EQUITY IS VERY LOW AS COMPARED TO SBI EQUITY FUND , SO TATA EQUITY IS LESS RISKY FOR INVESTORS AS COMPARED TO SBI EQUITY. NOW SEEING THE BETA OF BOTH THE FUNDS AS BETA OF BOTH THE FUND S IS MORE THAN 1 , SO IT MEANS THE BOTH THE FUNDS ARE GIVING MORE RETURNS AS COMPARED TO THERE BENCHMARKS .
BUT THEN ALSO BETA OF TATA EQUITY IS FAR MORE BETER THAN SBI EQUITY FUND. ITS BETA IS 1.12 ie GIVING 12% MORE RETURNS THAN ITS BENCHMARK . SO TATA EQUITY CAN GIVE MUCH BETER RETURNS AS COMPARED TO SBI EQUITY FUND
TATA EQUITY FUND IS ALSO MORE VOLATILE AS COMPARED TO SBI EQUITY FUND AS BETA OF TATA EQUITY IS MORE THAN SBI EQUITY BETA. THE SHARPE RATIO OF TATA PURE EQUITY IS ALSO MORE THAN SBI EQUITY THEREFORE TATA EQUITY PROVIDES MUCH BETER REWARDS IN TERMS OF RETURNS AS COMPARED TO SBI EQUITY FUND.
AS AN INVESTOR SHOULD INVEST IN TATA EQUITY TO GET BETER GROWTH AND CAPITAL APPRECIATION.
SECTOR FUNDS
ICICI BANKING FUND vs. UTI BANKING FUND
SCHEMES
Fund Class Fund Type Ranking
Benchmark
NAV Details
BSE SENSEX
16.900 Jun-08-2012
Bank Nifty
38.750 Jun-08-2012
PERFORMANCE CHART
35.00% 30.00% 25.00% 20.00%
15.00%
10.00% 5.00% 0.00% 3 Months -5.00% -10.00% -15.00% -20.00% 6 Months 1 Year 2 Years 3 Years 5 Years UTI ICICI
RETURNS OF FUND
7.3 -5.6
RETURNS OF BENCHMARK
4.3 -4.8 12.1 -7.3 4.3 12.8 10.1
12.2
4
-7.8
5
3.8
6
14
7
11.8
Rf
Rm
4.3 -4.8 12.1 -7.3 4.3 12.8 10.1 31.5
Rf-MEANf(X)
2.2 -10.7 7.1 -12.9 -1.3 8.9 6.7
Rm-MEANm(Y)
-0.2 -9.3 7.6 -11.8 -0.2 8.3 5.6
X.Y
-0.44 99.51 53.96 152.22 0.26 73.87 37.52 416.9
Y^2
0.04 86.49 57.76 139.24 0.04 68.89 31.36 383.82
2
-5.6
3
12.2
4
-7.8
5
3.8
6
14
7
11.8
TOTAL
35.7
COV
416.9/6 69.4
BETA
TREYNOR MEASURE=
RETURNS OF FUND
4.8 -1.8
RETURNS OF BENCHMARK
4.2 -4.7 12.1 -6.6 4.9 13.7 9.1
14.3
4
-6.1
5
4.6
6
14.3
7
11.5
1
-5 -10
Rf
Rm
4.2 -4.7 12.1 -6.6 4.9 13.7 9.1 32.7
Rf-MEANf(X)
-1.14286 -7.74286 8.357143 -12.0429 -1.34286 8.357143 5.557143
Rm-MEANm(Y)
-0.47143 -9.37143 7.428571 -11.2714 0.228571 9.028571 4.428571
X.Y
0.538776 72.56163 62.08163 135.7402 -0.30694 75.45306 24.6102
Y^2
0.222245 87.82368 55.18367 127.0451 0.052245 81.51509 19.61224
2
-1.8
3
14.3
4
-6.1
5
4.6
6
14.3
370.6786
371.4543
MEANm = 4.671429
BETA
0.996
SHARPE RATIO = Rf-Rr/ S.D (Given Rr= -11.426) = 5.942857- (-11.426)/61.9 = 0.28 TREYNOR MEASURE= Rf-Rr/ BETA = 5.942857-(-11.426)/0.996 = 17.44
COMPARISION TABLE
FUNDS STANDARD DEVIATIO BETA SHARPES RATIO TREYNORS MEASURE ICICI BANKING FUND
63.97 1.084 0.26 15.24
INTERPRETATION
BY THE ABOVE ANALYSIS WE CAN SAY THAT BOTH THE FUNDS ARE RISKY AS STANDARD DEVIATION OF BOTH FUNDS IS QUITE HIGH BUT ICICI FUND IS MORE RISKY THAN UTI BANKING FUND LOOKING TOWARDS THE BETA OF BOTH THE FUNDS ICICI BANKING FUND HAS BETA MORE THAN 1 , SO IT IS PERFORMING MORE AND GIVING BETER RETURNS AS COMPARED TO ITS BENCHMARK
BETA OF UTI BANKING IS ALMOST CLOSE TO ONE SO WE CAN SAY THAT THIS FUND IS GIVING THE SAME RETURNS OR PERFORMING ALMOST EQUAL TO ITS BENCHMARK. LOOKING TOWARDS THE SHARPE RATIO THE SHARPE RATIO OF UTI BANKING IS SLIGHTLY MORE THAN ICICI BANKING, SO IT IS GIVING BETER RETURNS TO INVESTORS AS COMPARED TO ICICI BANKING. WHEREAS ICICI BANKING FUND BEING MORE RISKY THAN UTI BANKING COULD NOT ABLE TO BETER RISK ADJUSTED RETURNS AS ITS SHARPE RATIO IS LESS THAN UTI BANKING. TREYNORS MEASURE OF UTI BANKING IS ALSO MORE THAN ICICI BANKING. THEREFORE UTI BANKING SECTOR FUND IS A LESS RISKY BETER RETURNS ROVIDING FUND AS COMPARED TO ICICI WHICH IS MORE RISKY