Beruflich Dokumente
Kultur Dokumente
Mr. S
ACKNOWLEDGEMENT
I express my gratitude to Mr. S, Chief Manager, SBI Mutual Fund, Industrial Service Centre, New Delhi, who helped as my guide and provide his valuable support in the completion of my project.
It has been a great and valuable experience for me and I was able to get a clear idea of the budgeting system of the company. This experience will be of great help in my future.
I would like to pay my gratitude to SBI MUTUAL FUNDS, which gave me a chance to undergo the summer training in Analysing the Mutual Fund Market scenario in India.
Finally, I would like to thank Christ University Institute of Management, Bangalore for providing me an opportunity to do the summer internship project in a company of my interest.
Thanking you,
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TABLE OF CONTENTS
Chapter 1 INTRODUCTION
1.1 DEFINTION & CONCEPT 1.2 ADVANTAGES OF MUTUAL FUND 1.3 DISADVANTAGES OF MUTUAL FUND 1.4 FREQUENTLY USED TERMS 1.5 HISTORY 1.6 TYPESOF MUTUAL FUND
4.3 METHODOLOGY 4.4 SOURCES OF DATA 4.5 LIMITATIONS OF STUDY 4.6 PERIOD OF THE STUDY 4.7 CORPORATE OFFICE
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CHAPTER 1
INTRODUCTION
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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, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000 crores of assets under management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund 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. The graph indicates the growth of assets over the years.
Note : Erstwhile UTI was bifurcated into UTI Mutual Fund and the Specified Undertaking of the Unit Trust of India effective from February 2003. The Assets under management of the Specified Undertaking of the Unit Trust of India has therefore been excluded from the total assets of the industry as a whole from February 2003 onwards.
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Schemes according to investment objective : A scheme can also be classified a growth scheme, income scheme, or balanced scheme considering its investment objective. Such schemes may be open-ended or close-ended schemes as described earlier. Such schemes may be classified mainly as follows. [11]
Growth / Equity Oriented Scheme : The aim of growth funds is to provide capital appreciation over the medium to long-term. Such schemes normally invest a major part of their corpus in equities. Such funds have comparatively high risks. These schemes provide different options to the investors like dividend option, capital appreciation, etc. and the investors may choose an option depending on their preferences. The investors must indicate the option in the application form. The mutual funds also allow the investors to change the options at a later date Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time. Income / Debt Oriented Scheme : The aim of income funds is to provide regular and steady income to investors, Such schemes generally invest in fixed income securities such as bond, corporate debentures. Government securities and money market instruments. Such funds are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets, hOwever, opportunities of capital appreciation are also limited in such funds. The NAVs of such funds are affected because of change in interest rates in the country. If the interest rates fall, NAVs of such funds are likely to increase in the short run and vice versa. However, long term investors may not bother about these fluctuations. Balanced Fund : The aim of balanced funds is to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. These are appropriate for investors looking for moderate growth. They generally invest 40-60% in equity and debt instruments. These funds are also affected because of fluctuations in share prices in the stock markets. However, NAVs of such funds are likely to be less volatile compared to pure equity funds.
Money Market or Liquid Fund : These funds are also income funds and their aim is to provide easy liquidity, preservation of capital and moderate income. These schemes invest exclusively in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money, government securities, etc. Returns on these schemes fluctuate much less [12]
compared to other funds. These funds are appropriate for corporate and individual investors as a means to park their surplus funds for short periods. Gilt Fund : These funds invest exclusively in government securities. Government securities have no default risk. NAVs of these schemes also fluctuate due to change in interest rates and other economic factors as is the case with income ordebt oriented schemes. Index Funds : Index Funds replicate the portfolio of a particular index such as the BSE Sensitive index, S&P NSI. 50 index (Nifty), etc. These schemes invest in the securities in the same weightage comprising of an index. NAVs of such schemes would rise or fall in accordance with the rise or fall in the index, though not exactly by the same percentage due to some factors known as tracking error in technical terms. Necessary disclosures in this regard are made in the offer document of the mutual fund scheme
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CHAPTER 2
ORGANIZATIONAL STRUCTURE
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2.1 ROLE OF SPONSOR : Sponsor is a person who sets up a Mutual Fund. Sponsor settles the trust and executes the trust deed. Sponsor contributes to the initial capital of the Trust. Sponsor appoints the Board of Trustees. Sponsor appoints the Board of Trustees. Sponsor also appoints the Asset Management Company. Sponsor contributes minimum 40% of net worth of AMC. 2.2 ROLE OF BOARD OF TRUSTEES : Trustees are appointed by the Sponsor with approval from SEBI. Atleast two third Trustees must be Independent. The Trustees have FUDUCIARY responsibility towards unit holders. Trustees not liable for acts done in good faith and if they have exercised adequate due diligence. Trustees oversee the functioning of AMC. Trustees approve each MF scheme floated by AMC. The investments in MFs are held by the Trustees. Trustees receive fees for their services. Trustees have the obligation to undertake General & specific due diligence. 2.3 ASSET MANAGEMENT CO. AND ITS ROLE : AMC is constituted as a company under the Indian Companies Act with minimum net worth of Rs. 10 crore. Minimum Contribution of a sponsor should be 40% of share capital of AMC. [15]
Atleast 50% of Directors of AMC to be independent. AMC can be terminated/changed with the consent of Majority of Trustees or At least 75% majority of Unit Holders
Following are the basic activities of an AMC : Asset Management Services Portfolio Management Services Portfolio Advisory Services
ROLE OF AMC AMC is the fund Manager for Managing Mutual Fund Assets. AMC floats different MF schemes. AMC are accountable to the Trustees.AMC works on fee based system which are subjected to ceiling prescribed by SEBI. 2.4 ROLE OF A CUSTODIAN Custodian is appointed by Board of Trustees. Custodian keeps the record of Securities and Investments. It collects benefits under Securities. A sponsor and a Custodian cannot be same identity needs to be different. A custodian needs to be registered with SEBI. 2.5 ROLE OF REGISTRAR & TRANSFER AGENT Registrar Issues, redeems, transfers units of MF scheme. They keep unit Holders A/Cs upto date. Registrar and transfer agent both needs to be registered with SEBI.
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CHAPTER 3
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o LIPPER AWARD THE LIPPER INDIA FUNDS AWARDS 2008 o OUTLOOK MONEY NDTV PROFITS AWARDS o ICRA MUTUAL FUND AWARDS o LIPPER AWARD THE LIPPER INDIA FUNDS AWARDS 2007 o CNBC AWAAZ CONSUMER AWARDS o CNBC TV18 CRISIL MUTUAL FUND OF THE YEAR AWARD o OUTLOOK MONEY NDTV PROFITS AWARDS o ICRA MUTUAL FUND AWARDS o LIPPER AWARD THE LIPPER INDIA FUNDS AWARDS 2006 o CNBC AWAAZ CONSUMER AWARDS o CNBC TV18 CRISIL MUTUAL FUND OF THE YEAR AWARD [20]
o OUTLOOK MONEY NDTV PROFITS AWARDS o ICRA MUTUAL FUND AWARDS o LIPPER AWARD THE LIPPER INDIA FUNDS AWARDS
3.4 CORPORATE OFFICE 191, Maker Tower 'E', Cuffe Parade, Mumbai - 400 005 Tel Fax : +91 22 22180221 : +91 22 22189663
Email : partnerforlife@sbimf.com
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CHAPTER 4
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4.3 METHODOLOGY
The methodology used is basically explorative type, where the study has been based under available financial data and discussion with the Fund managers & Market Watch officials.
Primary data has been obtained from the discussion with the Fund and Portfolio managers. Secondary Data
Mostly the secondary data were used in conducting the study. They were a) b) c) d) Records and Research Files of SBI Official documents Website of SBI Mutual Funds Press release of SBI Mutual Funds
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The only Limitation of my study which I observed was that the performance of each Fund was dependent on condition of Stock market. A thorough knowledge about the share market & its whereabouts is also very necessary.
The period of study which I have selected under my project is not fixed for each Fund. It may vary depending upon the date of establishment for that product. I have analysed the performance of each fund from date of its start or past 5 years, whichever is earlier & compared them with each other.
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CHAPTER 5
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5.2.1.2 Trailing Returns As on 20 Apr 2010 Year to Date 1-Month 3-Month 1-Year 3-Year 5-Year Return Since Launch Fund -0.02 0.02 1.08 65.55 9.16 25.72 19.44 Category 3.07 1.85 1.22 72.24 10.18 20.64 --
Returns upto 1 year are absolute and over 1 year are annualised.
5.2.1.3 Best and Worst Performance Best (Period) Month 60.94 (03/12/1999 - 04/01/2000) Worst (Period) -52.41 (31/03/2000 - 02/05/2000) -61.55 (25/02/2000 - 26/05/2000) -74.61 (13/03/2000 - 13/03/2001)
5.2.1.5 QUATERLY RETURNS Q1 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 Q2 0.05 --0.26 -25.6 -4.07 20 15.51 -6.67 -15.3 10.48 -37.7 28.4 57.46 11.29 Q3 -47.69 -17.06 13.48 -11.85 22.48 -6.59 33.55 4.63 -3.88 -43.87 2.16 -12.02 18.58 -4.58 15.68 16.38 27.6 30.81 33.19 -13.6 -24.2 -13 53.72 16.21 Q4 -6.72 -23.33 23.29 17.75 8.6 34.98 54.7 5.62 20.02 -14.84 73.95 -1.01
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5.2.1.6 ANALYSIS
Magnum Taxgain has generated a bit of an up-and-down performance In the seven years spanning 1996 to 2002, the fund underperformed the category average every single year, barring 1999 when it delivered a mesmerizing 330 per cent (category average: 219%). However, from 2003 onwards, it has been on steroids. After an excellent performance that year, it was the best performing fund in its category till 2006. But the year 2007 proved to be a dent in its performance when the fund was not even in the top two quartiles. However in the meltdown of 2008, it managed to get away with an average fall. The fund manager tends to tilt towards growth stocks, but sticks largely to a buy-and-hold strategy without overlooking opportunistic bets. But recently, the fund has undergone a transformation into a more conservative offering. The fund has increased allocation to cash and debt from 2006 onwards. While the mid- and small-cap allocation began to decrease that year, the fund took on a large-cap orientation towards the middle of 2007. Simultaneously, the fund also broadened its portfolio. It was from 2006 onwards that it really changed when it rose from a holding of 51 stocks to 77 by 2007. The top five holdings too are not as concentrated. These changes hindered the fund's performance in 2007. In the bear hug of 2008 and first quarter of 2009, it once again took refuge in debt and cash. While it witnessed an average fall last year, it succeeded in falling less than the category in the first quarter this year.
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In the recent rally from March 9 - June 30, 2009, the fund has managed to beat its category, although by a small margin. Its timely shift to equity and presence in metals, financial and engineering sectors helped it gain 68 per cent (category: 67%). Its conservative tilt may appeal to investors looking for a tax saving avenue in turbulent market conditions.
5.2.1.7 Returns and Risk Aggregates Rating & Risk Fund Rating Fund Risk Grade Fund Return Grade Modern Portfolio Stat R-Squared Alpha Beta Volatility Measures Mean Standard Deviation Sharpe Ratio 16.13 34.92% 0.39 0.98 0.13 0.88 *** Below Average Average
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52-Week High : 52-Week Low : Fund Category : Type Launch Date Risk Grade : : :
5.2.2.2 Trailing Returns As on 21 Apr 2010 Year to Date 1-Month 3-Month 1-Year 3-Year 5-Year Return Since Launch Fund 2.32 4.10 4.32 75.98 18.49 25.72 29.21 Category 3.72 2.49 4.08 74.33 10.39 20.48 --
Returns upto 1 year are absolute and over 1 year are annualised.
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Top Holdings Name of Holding Bajaj Auto ICICI Bank Aurobindo Pharma Reliance Industries ITC
% Net Asset
Best (Period) Month Quarter Year 49.95 (13/03/1998 - 17/04/1998) 103.71 (19/11/1999 - 18/02/2000) 294.09 (24/12/1998 - 24/12/1999)
Worst (Period) -32.18 (09/02/2001 - 13/03/2001) -43.56 (25/02/2000 - 26/05/2000) -69.29 (12/04/2000 - 12/04/2001)
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5.2.2.4 ANNUAL RETURNS 2009 Fund Return Rank In Category Category Average S&P CNX Nifty Sensex 90.57 7/32 81.79 75.76 81.03 2008 -49.56 5/29 -55.56 -51.79 -52.45 2007 64.65 10/26 59.25 54.77 47.15 2006 25.64 18/23 30.18 39.83 46.7 2005 50.3 8/20 50.08 36.34 42.33
5.2.2.5 QUATERLY RESULTS Q1 2010 2009 2008 2007 2006 2005 2004 2003 2002 -1.13 -3.45 -27.88 -7.84 20.45 -2.9 -8.68 -8.38 9.34 Q2 -51.31 -15.7 18 -16.54 9.41 -8.51 14.48 -3.22 Q3 -25.17 -0.7 14.04 14.52 32.82 18.25 34.49 -8.77 Q4 -4.23 -16.45 32.77 9.14 6.52 21.95 39.84 11.1
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5.2.2.6 ANALYSIS Sahara Tax Gain has an asset size of Rs. 8.77 crore spread over a portfolio of 32 stocks. The fund was launched in April, 97 and thus it has withered many market phases. The fund has limited its investment to less than 5% in any individual stock. The fund is mainly largecap based given its high exposure of 71.74% in large-cap stocks (Market capitalisation > Rs. 5000 crores) followed by 25.22% in Mid-caps and 3.04% in Smallcaps and the top-ten holdings constitutes 32.06% of the total assets. The assets are allocated between equity and cash with no investment in debt. The proportion of asset invested in equity & cash equivalents being 83.57% & 16.43% respectively. The sector allocation is also very conservative and its top investments are in FMCG, Financial, Energy, Technology, Healthcare aggregating to 62.23%. Sahara Tax Gain FundGrowth has been ranked among the Top 10 best performing equity schemes in the world over, as per Lipper global fund data. The scheme also has the facility of SIP (Systematic Investment Plan) offered to its investors to counter volatility and invest regularly to benefit from the growth. The fund is a defensive fund considering its Beta of less than market. The expense ratio of the fund is moderate considering that the portfolio was churned in the last one year.
5.2.2.7 Returns and Risk Aggregates Rating & Risk Fund Rating Fund Risk Grade Fund Return Grade Modern Portfolio Stat R-Squared Alpha Beta Volatility Measures Mean 22.73 [35] 0.94 8.27 0.97 **** Average Above Average
35.53 0.51
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5.2.3.2 Trailing Return As on 23 Apr 2010 Year to Date 1-Month 3-Month 1-Year 3-Year 5-Year Return Since Launch Fund 6.37 2.62 6.74 90.51 14.00 25.00 35.08 Category 4.40 3.56 5.77 73.99 10.65 20.44 --
Returns upto 1 year are absolute and over 1 year are annualised.
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Top Holdings As on 31 Mar Name of Holding ICICI Bank Dr. Reddy's Lab Crompton Greaves Sun Pharmaceutical Inds. State Bank of India 4.45 4.43 4.18 4.11 % Net Assets 5.48
31/03/2010
Fund Return Rank In Category Category Average S&P CNX Nifty Sensex
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Q2 4.39 --1.93 -25.58 -8.62 20.13 8.13 -4.07 51.17 -16.82 16.92 -12.22 15.63 -5.9
Best (Period) Month Quarter Year 34.19 (15/12/1999 - 14/01/2000) 78.93 (09/03/2009 - 10/06/2009) 272.59 (24/02/1999 - 24/02/2000)
Worst (Period) -32.30 (26/09/2008 - 27/10/2008) -39.75 (02/09/2008 - 02/12/2008) -55.57 (03/12/2007 - 02/12/2008)
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5.2.3.7 Returns and Risk Aggregates Rating & Risk Fund Rating Fund Risk Grade Fund Return Grade **** (4 star) Below Average Above Average
5.2.3.8 ANALYSIS
The best fund in good and bad times. HDFC Taxsaver continues to be the first choice in the category of tax-planning funds. In its history spanning over 10 years, the fund has displayed tremendous ability to race ahead during the good times, while protecting the downside well when the markets fell. The fund has been doing this consistently year after year. Its glorious performance also gets reflected in its star ratingsit has never been rated below four-star in the 82 months of its rated life. In the nine completed calendar years of its existence, the fund marginally under-performed its category only in 2002, while beating an average peer by more than 10 per cent in each of the remaining years. This year, the fund is up 26.68 per cent as on April 7, ahead of an average peers 22.72 per cent. Some smart stock picks and some quality sector moves enabled this fund to steer clear of the technology collapse with ease. The fund booked profits and
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reduced exposure to the technology sector at the right time before the market turned bearish in March 2000. With the exposure to tech sector down from 35.19 per cent in previous month to 12.2 per cent, the fund was sitting comfortably with 41.9 per cent of its assets in cash when the meltdown began. Though it erred in re-entering the sector a bit too early, the key contributor to the positive returns generated by the fund in 2000 was Raymond Ltd, its top holding (accounting for more than 10 per cent) from August 2000 till February 2001. While the markets were bleeding, the stock price doubled from Rs 70 in May 2000 to Rs 140 by February 2001. A high exposure to fast moving consumer goods (FMCG) stocks would have also helped. Then in 2001, the funds dependence on pharma stocks and some select companies, like Ashok Leyland and Associated Cement Companies, saved the day for this fund. An average 10 per cent investment in bonds from the second quarter of 2000 till mid 2001 also provided a good cushion to this star fund. The fund has been quite selective in its picks in which it invests with conviction. The number of stocks in the portfolio is generally restricted to 20-25 (though of late, that has gone up to 30), with the top five accounting for more than 30 per cent. Hindustan Zinc is the funds top holding. After making the full use of the mid-cap rally in the last two-and-a-half years or so, the fund has started to get back to large-caps. In short, HDFC Taxsaver is an apt core holding for an equity portfolio.
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Latest NAV 52-Week High 52-Week Low Fund Category Type Launch Date Risk Grade Return Grade Net Assets (Cr) Benchmark
42.5166 (30/04/10) 43.9725 (06/01/10) 26.9263 (11/05/09) Equity: Tax Planning Open End November 1999 Average Above Average 1,283.66 (31/03/10) BSE 200
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As on 30 Apr 2010 Year to Date 1-Month 3-Month 1-Year 3-Year 5-Year Return Since Launch
Returns upto 1 year are absolute and over 1 year are annualised.
Top Holdings Name of Holding Reliance Industries Adani Power State Bank of India ONGC Aban Offshore
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% Net Asset
Best (Period) Month Quarter Year 34.04 (28/04/2009 - 28/05/2009) 74.93 (09/03/2009 - 10/06/2009) 112.20 (02/01/2003 - 02/01/2004)
Worst (Period) -34.05 (15/05/2006 - 14/06/2006) -32.65 (24/02/2000 - 25/05/2000) -49.92 (14/01/2008 - 13/01/2009)
5.2.4.5 ANNUAL RETURNS 2009 Fund Return Rank In Category Category Average S&P CNX Nifty Sensex 72.02 25/32 81.79 75.76 81.03 2008 -47.58 2/29 -55.56 -51.79 -52.45 2007 68.38 7/26 59.25 54.77 47.15 2006 31.97 11/23 30.18 39.83 46.7 2005 59.61 5/20 50.08 36.34 42.33
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5.2.4.6 QUATERLY RETURNS Q1 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 --2.72 -7.87 -28.95 -6.05 18.92 0.04 -11.83 -4.52 13 -13.64 14.17 -Q2 -45.53 -10.12 11.7 -16.5 7.98 -5 23.93 1.96 -1.28 -14.88 -Q3 -24.69 -3.3 20.22 13.92 27.54 31.45 27.2 -8.01 -17.17 -13.64 -Q4 -2.9 -15.1 33.46 16.66 15.85 30.58 37.66 8.59 20.72 -2.38
5.2.4.7 Returns and Risk Aggregates Rating & Risk Fund Rating Fund Risk Grade Fund Return Grade Modern Portfolio Stat R-Squared Alpha Beta -6.86 .91 **** Average Above Average
Volatility Measures Mean Standard Deviation Sharpe Ratio 24.83 29.59 0.58
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5.2.4.8 ANALYSIS
Sundaram BNP Paribas Taxsavers adaptability has given it an edge This fund's adaptability is appealing. Its approach has translated into a competitive long-term record. It has also often displayed the ability to protect the downside. Typical of this fund's style is flexibility in every aspect. Its 48 per cent large-cap allocation (March 2007) shot up to almost 70 per cent by June 2007 before sliding down to 54.75 per cent by the end of that year. It's also nimble in its asset allocation. More so in 2008, when the cash and debt allocation total went up to 36 per cent. Also, when markets took a U-turn for an upward journey in March 2009, the fund was quick to cut down its cash exposure from March (26.81 per cent) to June (2.70 per cent). The fund did benefit from this move as it turned in 71.20 per cent compared to the categorys 67.71 per cent over the rally (09/03/2009 to 31/05/2009). But in the next month the fund had the highest fall (5.52 per cent) in the category. If the fund manager sees an opportunity, he is quick to capitalise on it, be it in stocks or sectors. In 2007, for instance, the metals allocation jumped from 8.86 per cent (August) to 20.87 per cent in just two months. Five months down the road it was down to 4 per cent. Similarly, financial services went from 21 per cent in December 2007 to 5.49 per cent in June 2008 and up to 28.09 per cent in December 2008. One can also, see a similar treatment meted out to stocks, with a number of them making short opportunistic appearances in the portfolio. But rarely does the fund manager take an exposure of more than 5 per cent to a single stock. In fact, this actively-managed fund has the third-highest Sharpe Ratio amongst the tax planning funds, meaning it generates higher returns for every unit of risk taken.
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5.2.5 ICICI PRU TAX PLAN-G 5.2.5.1 Current Stats & Profile Latest NAV 52-Week High 52-Week Low Fund Category Type Launch Date Risk Grade Return Grade Net Assets (Cr) Benchmark 130.84 (30/04/10) 130.84 (30/04/10) 67.13 (11/05/09) Equity: Tax Planning Open End August 1999 Average Above Average 1,123.08 (31/03/10) S&P CNX Nifty
5.2.5.2 Trailing Returns As on 30 Apr 2010 Fund Year to Date 1-Month 3-Month 1-Year 3-Year 5-Year Return Since Launch 7.52 2.75 10.06 101.35 14.24 22.56 27.08 Category 4.60 2.88 9.28 72.44 10.38 20.96 --
Returns upto 1 year are absolute and over 1 year are annualised.
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Top Holdings Name of Holding Reliance Industries Infosys Technologies Sterlite Industries Bharti Airtel Cadila Healthcare
% Net Asset
Best (Period) Month Quarter Year 41.05 (03/12/1999 - 04/01/2000) 85.19 (22/11/1999 - 22/02/2000) 158.38 (05/03/2009 - 05/03/2010)
Worst (Period) -38.84 (11/04/2000 - 12/05/2000) -55.59 (22/02/2000 - 23/05/2000) -57.93 (13/03/2000 - 13/03/2001)
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2009 Fund Return Rank In Category Category Average S&P CNX Nifty Sensex 112 1/32 81.79 75.76 81.03
Q1 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 -4.64 -0.91 -28.95 -10.92 18.23 8.92 -18.36 -10.13 15.86 -13.41 6.97
Q2 -51.11 -9.83 13.19 -15.75 13.24 -3.23 43.79 1.69 0.68 -34.73 -[49]
Q3 -25.62 -7.51 7.89 23.35 28.84 32.76 40.24 -13.24 -13.46 -7.42 --
Q4 -12.71 -25.78 29.56 2.68 6.22 30.09 38.14 10.99 24.67 -8.09 55.78
5.2.5.7 Returns and Risk Aggregates Rating & Risk Fund Rating Fund Risk Grade Fund Return Grade *** Average Above Average
Modern Portfolio Statistics R-Squared Alpha Beta Volatility Measures Mean Standard Deviation Sharpe Ratio 20.09 36.95 0.42 0.87 5.60 0.97
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Fund Launch Date Value Research Rating (Nov 2009) OM Morningstar Rating (May 09) ET Quartely MF Tracker (Sept' 09) Risk Grade Return Grade
HDFC Taxsaver Mar-96 4 Star 4 Star Silver Below Avg. Above Avg. large-cap
Rank
--1 YR --3YR --5YR --7YR --10YR 20 / 30 4 / 26 2 / 20 3 / 19 3 / 15 12 / 30 3 / 26 5 / 20 8 / 19 11 / 15 10 / 30 10 / 26 1 / 20 1 / 19 7 / 15 4 / 30 8 / 26 4 / 20 2 /19 1 / 15
Rank
--2009 --2008 --2007 --2006 --2005 25/32 2 / 29 7 / 26 11 / 23 5 / 20 7 / 32 5 / 29 10 / 26 18 / 23 8 / 20 12 / 32 14 / 29 16 / 26 1 / 23 1 / 20 3 / 32 8 / 29 24 / 26 10 / 23 2 / 20
21.79% 1213.02
17.22% 8.59
21.44% 4961.62
24.08% 1946.94
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No. of Stocks Equity holdings (%) Expense Ratio P/E Ratio Turnover Ratio Sharpe Ratio Beta R-Squared Alpha
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CHAPTER 6
LEARNING EXPERIENCE
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LEARNING EXPERIENCE
Studying this project was very useful as it helped me learn several aspects of a stock market and its effects on several industries.
The selection of fund is the most important factor in Mutual Fund Industry. Every Fund cater different needs. Selection must be purely based on individuals requirements. Working in Mutual Fund industry is very much complimented by constant watch on stock market. Every move in stock market could affect your money invested in fund Mutual funds are for those people who think of future and can make investment which may lock their money for longer period in order to get better returns. E.g. In case of growth funds money may be locked for upto 10 years. Various aggregate factors and returns rates are very important indicators for the growth of the fund. Besides looking to the past years returns factors such as Mean, Standard Deviation, Beta value are also very important in studying the growth of a particular fund. SBI Mutual Fund itself is a well established company with very experienced Fund managers handling several products of SBI which includes several Equity funds, Debt Funds, Balanced Funds, Exchange trade funds.
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CHAPTER 7
CONCLUSIONS
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CONCLUSION
Since my project study was restricted to 60 days only so I considered taking up just the Analysis of Top ten tax saving ELSS mutual fund in the market. ELSS funds are basically an option where an individual can get Tax exemption over its income by investing in such funds. Under ELSS funds an individual get an exemption of over Rs. 1 Lakh on its income. To review and handle every Mutual fund, there is a Fund Manager appointed. Every Fund manager keeps a thorough watch on the market in order to regulate the money invested in different stocks. This reduces the risk of an investor who has invested in different portfolios. Though investing in mutual funds provides fewer returns as compared to investing in Shares but here risk is reduced as compared to direct investment in stock market. Since the money is blocked for the period of 3 years, its positive aspect as it takes at 3years mutual fund to grow. Above mentioned Funds are all Defensive in nature since there BETA is less than 1, i.e. they maintain a secured and low risk factor assuring low but guaranteed returns. Also basic motive is to get the Tax exemption. Hence low risk profile is maintained. The 2009 downturn took every fund beneath the ground but Indian market having a strong debt base helped these fund to recover even faster with the economy. Mutual Funds are good option for individual having high income and who are looking forward to save their taxes. It is a good option to safeguard your money and helps it grow more. In the end, I would like to say that my experience at SBI Mutual Fund was extraordinary. I experienced and learned certain extra knowledge within my field and fields related to them. Mutual funds are also subject to market. The offer document must be read very carefully by an investor before investing the money.
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CHAPTER 8
BIBLIOGRAPHY
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BIBLIOGRAPHY
REPORTS & MANUALS
SBI MUTUAL FUND HAND BOOK SBI MUTUAL FUND INVESTMENT UPDATE APRIL 2010 HDFC MUTUAL FUND INVESTEMENT PLANNER SUNDARAM PNB PARIBUS INVESTEMENT MAP ICICI PRUDENTIAL MUTUAL FUND KEY INFORMATION MEMORANDUM
NEWSPAPERS
The Economic Times Business Standard
WEBSITES
www.sbimf.com www.indiainfoline.com www.valueresearchonline.com
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