1.

EXECUTIVE SUMMARY

The study deals about the performance of various mutual funds in the market and rank them in a systematic order over a period of 5 years. The study was basic to understand the concept of NAV and Mutual fund, to study the advantages available to the investors through mutual fund The study was restricted to angalore city, only open!ended funds have been considered and not all the information was freely available The report deals with a comparative study of Mutual funds "Ten different e#uity diversified funds were taken into consideration and NAV returns for a period of up to 5 years were compared with market portfolio $market indicators% vi& '( sense) and Nifty. *t was found from the analysis that private Mutual fund out performed the public mutual funds and market indicators

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

2. INTRODUCTION
Mutual funds are among the most popular investments on the market. Many people buy them because of their competitive returns. +thers like them because they are easy to buy and sell. 'till others cite the fact that mutual funds, because they hold several investments, can spread risk A mutual fund raises money from investors to invest in stocks, bonds and other securities. *t is a package made up of several individual investments. 4hen those investments gain or lose value, you gain or lose as well. 4hen they pay dividends, you get a share of them. Mutual funds also offer professional management and diversification. They do much of your investing work for you. Mutual funds may be open!end or closed!end funds. The term 5mutual funds5 is used most often to mean open!end funds. +pen!end funds issue new shares continuously as investors buy them. *nvestors redeem their shares directly to the fund, which in turn must buy them back. 0losed!end funds issue a fi)ed number of shares that the fund may redeem only upon termination of the fund6s trust. 'hareholders in a close!end fund may, however, sell their shares through a broker on the secondary market to other investors but not back to the fund. This tutorial will focus on open!ended funds. 7ou can buy mutual fund shares directly from the mutual fund company or from a stock broker. (ither way buying and redeeming is relatively easy.

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

SUBJECT BACKGROUND OF THE RESEARCH TOPIC

1. Profess o!"# M"!"$e%e!& Mutual -unds provide the services of e)perienced and skilled professionals, backed by a dedicated investment research team that analyses the performance and prospects of companies and selects suitable investments to achieve the ob9ectives of the scheme. 2. D 'ers f ("& o! Mutual -unds 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. 7ou achieve this diversification through a Mutual -und with far less money than you can do on your own. ). Co!'e! e!& A*% ! s&r"& o! *nvesting in a Mutual -und reduces paperwork and helps you avoid many problems such as bad deliveries, delayed payments and follow up with brokers and companies. Mutual -unds save your time and make investing easy and convenient. +. Re&,r! Po&e!& "# +ver a medium to long!term, Mutual -unds have the potential to provide a higher return as they invest in a diversified basket of selected securities. -. .o/ Cos&s Mutual -unds are a relatively less e)pensive 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.

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

0. . 1, * &2 *n open!end schemes, the investor gets the money back promptly at net asset Value related prices from the Mutual -und. *n closed!end schemes, the units can be sold on a stock e)change at the prevailing market price or the investor can avail of the facility of direct repurchase at NAV related prices by the Mutual -und. 3. Tr"!s4"re!(2 7ou 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 manager6s investment strategy and outlook. 5. F#e6 7 # &2 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. 8. Affor*"7 # &2 *nvestors 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. 19. C:o (e of S(:e%es Mutual -unds offer a family of schemes to suit your varying needs over a lifetime. 11. ;e## Re$,#"&e* All Mutual -unds are registered with '( * and they function within the provisions of strict regulations designed to protect the interests of investors. The operations of Mutual -unds are regularly monitored by '( *.

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

T24es of M,&,"# F,!*s<=

M,&,"# f,!* s(:e%es %"2 7e (#"ss f e* o! &:e 7"s s of< B2 &s s&r,(&,re "!* B2 &s !'es&%e!& o7>e(& 'e B2 S&r,(&,re< O4e!=e!*e* F,!*s< An open!end fund is one that is available for subscription all through the year. These do not have a fi)ed maturity. *nvestors can conveniently buy and sell units at Net Asset Value $5NAV5% related prices. The key feature of open!end schemes is li#uidity. C#ose*=e!*e* F,!*s< A closed!end fund has a stipulated maturity period which generally ranging from : to 35 years. The fund is open for subscription only during a specified period. *nvestors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock e)changes where they are listed. *n order to provide an e)it route to the investors, some close!ended funds give an option of selling back the units to the Mutual -und through periodic repurchase at NAV related prices. '( * .egulations stipulate that at least one of the two e)it routes is provided to the investor. I!&er'"# F,!*s *nterval funds combine the features of open!ended and close!ended schemes. They are open for sale or redemption during pre!determined intervals at NAV related prices.

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

B2 I!'es&%e!& O7>e(& 'e<

Gro/&: F,!*s< The aim of growth funds is to provide capital appreciation over the medium to long! term. 'uch schemes normally invest a ma9ority of their corpus in e#uities. *t has been proven that returns from stocks, have outperformed most other kind of investments held over the long term. 2rowth schemes are ideal for investors having a long!term outlook seeking growth over a period of time. I!(o%e F,!*s< The aim of income funds is to provide regular and steady income to investors. 'uch schemes generally invest in fi)ed income securities such as bonds, corporate debentures and 2overnment securities. *ncome -unds are ideal for capital stability and regular income. B"#"!(e* F,!*s< The aim of balanced funds is to provide both growth and regular income. 'uch schemes periodically distribute a part of their earning and invest both in e#uities and fi)ed income securities in the proportion indicated in their offer documents. *n a rising stock market, the NAV of these schemes may not normally keep pace, or fall e#ually when the market falls. These are ideal for investors looking for a combination of income and moderate growth. Mo!e2 M"r?e& F,!*s< The aim of money market funds is to provide easy li#uidity, preservation of capital and moderate income. These schemes generally invest in safer short!term instruments such as treasury bills, certificates of deposit, commercial paper and inter!bank call money. .eturns on these schemes may fluctuate depending upon the interest rates prevailing in the market. These are ideal for corporate and individual investors as a means to park their surplus funds for short periods.

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<

 .o"* F,!*s< A 1oad -und is one that charges a commission for entry or e)it. That is, each time you buy or sell units in the fund, a commission will be payable. Typically entry and e)it loads range from 3= to 8=. *t could be worth paying the load, if the fund has a good performance history. No=.o"* F,!*s< A No!1oad -und is one that does not charge a commission for entry or e)it. That is, no commission is payable on purchase or sale of units in the fund. The advantage of a no load fund is that the entire corpus is put to work. T"6 S"' !$ S(:e%es< These schemes offer ta) rebates to the investors under specific provisions of the *ndian *ncome Ta) laws as the 2overnment offers ta) incentives for investment in specified avenues. *nvestments made in (#uity 1inked 'avings 'chemes $(1''% and >ension 'chemes are allowed as deduction u?s @@ of the *ncome Ta) Act, 3A<3. The Act also provides opportunities to investors to save capital gains u?s 5;(A and 5;( by investing in Mutual -unds.

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

SPECIA. SCHEMES<

I!*,s&r2 S4e( f ( S(:e%es<

*ndustry 'pecific 'chemes invest only in the industries specified in the offer document. The investment of these funds is limited to specific industries like *nfoTech, -M02, and >harmaceuticals etc. I!*e6 S(:e%es< *nde) -unds attempt to replicate the performance of a particular inde) such as the 'ense) or the N'( 5C. Se(&or"# S(:e%es< 'ectoral -unds are those, which invest e)clusively in a specified industry or a group of industries or various segments such as 6A6 2roup shares or initial public offerings. '(

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

Nee* for &:e S&,*2

usiness concerns, corporate investors worldwide are using these new financial instrumentsD "Mutual -undsE effectively to reduce substantial loss, countries have proved that these instruments can effectively reduce risk. There has always been high volatility in *ndia, which leads to very high!risk levels. 'o there is an absolute need to develop. This concept makes all the investors aware of its advantages and makes them use these instruments according to their needs. To study the concept of Mutual funds such as how mutual funds have come into e)istence, the different types of mutual funds schemes such as open ended schemes closed ended schemes, to compare the performance of different mutual funds to understand the concept of NAV and mutual funds, to identify the different players in mutual fund industry, to compare e#uity funds with sense) and nifty.

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

BRIEF INTRODUCTION
Mutual funds are among the most popular investments on the market. Many people buy them because of their competitive returns. +thers like them because they are easy to buy and sell. 'till others cite the fact that mutual funds, because they hold several investments, can spread risk A mutual fund raises money from investors to invest in stocks, bonds and other securities. *t is a package made up of several individual investments. 4hen those investments gain or lose value, you gain or lose as well. 4hen they pay dividends, you get a share of them. Mutual funds also offer professional management and diversification. They do much of your investing work for you.

2.1 S&"&e%e!& of &:e 4ro7#e%F

To study about the performance of various Mutual funds in the market and rank them in a systematic order over a period of time $5 yearGs%

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

3C

Re' e/ of # &er"&,re
The main purpose of literature is to get the information regarding the study taken up and information regarding the mutual funds, terms and condition to do statistical analysis researchers re#uires a lot numerical data and it is not at all easy task to pro)y one to collect such comple) numeric data without any literature. .esearcher has also faced some problem and to over come this, the following methods were used. All the times the researcher re#uired deep conceptual knowledge, to get such knowledge researcher has referred sub9ect related books as well as articles to the topic. *n this process, it should be remembered that one source would lead to another. The earlier studies, if any which are similar to the study, concerning the problem at hand must necessarily be surveyed and e)amined before a definition of the research problem is given. He must devote sufficient time to reviewing of research already undertaken on related problems. This is done to find out what data and other materials, if any are available for optional purpose. This would also help the researcher to know if there are any gaps in the theories applicable to the problem under study are inconsistent with each other, or weather the findings of different studies do not follow a pattern consistent with the theoretical e)pectation go on, All this will enable a researcher to take new strides in the field for furtherance for knowledge, i.e., he can move up starting from the e)isting premise.

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Me&:o*o#o$2
To ease out the research work the researcher has gone through many books and articles related to the research. *n this pro9ect technical and trade 9ournals, books, maga&ines, and, reports and publication of various associations connected with business and industry are referred. *nvestment analysis and portfolio management, second edition by >rasanna 0handra. This book helped to study the nature and scope of the mutual fund, definitions, kinds of mutual fund and also factors affecting risk. usiness 4orld Maga&ine, This maga&ine helped to grasp the facts about overall private players in the mutual fund industry. The broachers of the each company helped to gain a detailed knowledge about the product and its features.

Be!ef &s fro% &:e # &er"&,re s&,*2

The literature has helped the researcher to find what the policies are with the company marketed and its uses. *t also gave the brief idea of the companyGs. *t helped in understanding the problem clearly and making the approach to the problem clear and simple.

Co!(#,s o!
The literature review definitely added something to researcherGs knowledge. *t also helped the researcher to sum up the conceptual problems. *t has fastened the researcherGs work. *t has opened up new ideas for the researcher. Now a days more than the traditional literature electronic literature orientation is used. The internet helps to easy access the information regarding the sub9ect and related topics. >rompt definitions can be gathered it

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38

makes concepts sound and meaning full. *t guides the researcher when a research gets stuck in difficult analysis.

2.2 O7>e(& 'es of &:e s&,*2

To compare the performance of different mutual funds. To understand the concept of Net Asset Value $NAV% and mutual fund To identify different players in mutual fund industry. To study the advantages available to the investors through Mutual funds. To compare (#uity funds with the sense) and Nifty.

2.) S(o4e of &:e s&,*2<

This study will help a layman to take investment decision. This study will help the individual who invest in shareGs I in savings ank deposit and who are looking towards alternative sources of investment to ma)imi&e their returns. This study will help the investors who are risk averters and who e)pect a high rate of return on their investments.

SAMP.E DESIGN
The population consists of 3C five year old fundsD the entire population has been taken in to consideration for the study.

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2.+ Me&:o*o#o$2
Rese"r(: Des $!< ()ploratory researchF The main purpose of e)ploratory studies is that of formulating a problem for precise investigation or of developing the working hypothesis from an operational point of view both primary and secondary data are used for the purpose of the study.

TOO.S OF DATA CO..ECTION

The primary data was collected through records, manuals, -act sheets. The secondary data was collected from websites, maga&ines and 9ournals.

2.- . % &"& o!s<

The study was restricted to angalore 0ity. Not all the information re#uired was freely available. *nteraction with the company professional was limited, due to their busy schedule. +nly 3C (#uity funds were compared and analy&ed. +nly funds, which are more than five years old, have been considered. +nly open!ended funds have been considered.

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

3;

ABOUT THE INDUSTRY

HISTORY AND GRO;TH OF INDIAN MUTUA. FUND INDUSTRY Mutual funds are pools of money that are managed by an investment company, they offer investors a variety of goals, depending on the fund and its investment charter. 'ome funds, for e)ample, seek to generate income on a regular basis. +thers seek to preserve an investor6s money. 'till others seek to invest in companies that are growing at a rapid pace. -unds can impose a sales charge, or load, on investors when they buy or sell shares. Many funds these days are no load and impose no sales charge. Mutual funds are investment companies regulated by the *nvestment 0ompany Act of 3A;C. The mutual fund industry in *ndia started in 3A<: with the formation of Jnit Trust of *ndia, at the initiative of the 2overnment of *ndia and .eserve ank the. The history of mutual funds in *ndia can be broadly divided into four distinct phases F rs& P:"se K 3A<;!@B an Act of >arliament established Jnit Trust of *ndia $JT*% on 3A<:. *t was set up by the .eserve ank of *ndia and functioned under the .egulatory ank of *ndia $*/ *% took over the regulatory and administrative control of the .eserve ank of *ndia. *n 3AB@ JT* was de!linked from the . * and the *ndustrial /evelopment and administrative control in place of . *. The first scheme launched by JT* was Jnit 'cheme 3A<;. At the end of 3A@@ JT* had .s.<, BCC crores of assets under management. Se(o!* P:"se K 3A@B!3AA: $(ntry of >ublic 'ector -unds% 3A@B marked the entry of non! JT*, public sector mutual funds set up by public sector banks and 1ife *nsurance 0orporation of *ndia $1*0% and 2eneral *nsurance 0orporation of *ndia $2*0%. ' * Mutual -und was the first non! JT* Mutual -und established in Lune 3A@B followed by 0anbank Mutual -und $/ec @B%, >un9ab National ank Mutual -und $Aug @A%, *ndian

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35

ank Mutual -und $Nov @A%, ank of *ndia $Lun AC%, ank of aroda Mutual -und $+ct A8%. 1*0 established its mutual fund in Lune 3A@A while 2*0 had set up its mutual fund in /ecember 3AAC. At the end of 3AA:, the mutual fund industry had assets under management of .s.;B, CC; crores. T: r* P:"se K 3AA:!8CC: $(ntry of >rivate 'ector -unds% 4ith the entry of private sector investors a wider choice of fund families. Also, 3AA: was the year in which the first Mutual -und .egulations came into being, under which all mutual funds, e)cept JT* were to be registered and governed. The erstwhile Mothari >ioneer $now merged with -ranklin Templeton% was the first private sector mutual fund registered in Luly 3AA:. The 3AA: '( * $Mutual -und% .egulations were substituted by a more comprehensive and revised Mutual -und .egulations in 3AA<. The industry now functions under the '( * $Mutual -und% .egulations 3AA<. As at the end of Lanuary 8CC:, there were :: mutual funds with total assets of .s. 3, 83,@C5 crores. Fo,r&: P:"se K since -ebruary 8CC: *n -ebruary 8CC:, following the repeal of the Jnit Trust of *ndia Act 3A<: JT* was bifurcated into two separate entities. +ne is the 'pecified Jndertaking of the Jnit Trust of *ndia with assets under management of .s.8A, @:5 crores as at the end of Lanuary 8CC:, representing broadly, the assets of J' <; scheme, assured return and certain other schemes. The 'pecified Jndertaking of Jnit Trust of *ndia, functioning under an administrator and under the rules framed by 2overnment of *ndia and does not come under the purview of the Mutual -und .egulations. The second is the JT* Mutual -und 1td, sponsored by ' *, >N , + and 1*0. *t is registered with '( * and functions under the Mutual -und .egulations. 4ith the bifurcation of the erstwhile JT* which had in March 8CCC more than .s.B<,CCC crores of assets under management and with the setting up of a JT* Mutual -und, conforming to the '( * Mutual -und .egulations, 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 Lune :C, 8CC:, there were :3 funds, which manage assets of .s.3C;B<8 crores under :B< schemes. The graph indicates the growth of assets over the years.

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

3<

M,&,"# F,!*s ! I!* " @180+=2999A The end of millennium marks :< years of e)istence of mutual funds in this country. The ride through these :< years is not been smooth. *nvestor opinion is still divided. 4hile some are for mutual funds others are against it. JT* commenced its operations from Luly 3A<; 5with a view to encouraging savings and investment and participation in the income, profits and gains accruing to the 0orporation from the ac#uisition, holding, management and disposal of securities.5 /ifferent provisions of the JT* Act laid down the structure of management, scope of business, powers and functions of the Trust as well as accounting, disclosures and regulatory re#uirements for the Trust. +ne thing is certain K the fund industry is here to stay. The industry was one!entity show till 3A@< when the JT* monopoly was broken when ' * and 0anbank mutual fund entered the arena. This was followed by the entry of others like +*, 1*0, 2*0, etc. sponsored by public sector banks. 'tarting with an asset base of .sC.85bn in 3A<; the industry has grown at a compounded average growth rate of 8<.:;= to its current si&e of .s33:Cbn.The period 3A@<!3AA: can be termed as the period of public sector mutual funds $>M-s%. -rom one player in 3A@5 the number increased to @ in 3AA:. The opening up of the asset management business to private sector in 3AA: saw international players like Morgan 'tanley, Lardine -leming, L> Morgan, 2eorge 'oros and 0apital *nternational along with the host of domestic players 9oins the party. ut for the e#uity funds, the period of 3AA;!A< was one of the worst in the history of *ndian Mutual -unds.

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3B

INVESTMENT OPPORTUNITIES
S"' !$s 7"!? "((o,!& / &: (o%%er( "# 7"!?s< A safe, li#uid and convenient investment option, it gives an interest rate of an average ;.5= per annum, ideal parking funds for emergencies or une)pected e)penses, the account holder may keep an average balance e#ual to three months of his living e)penses. O7>e(& 'e< To provide high li#uidity and safety to the account holders. R s?< The savings rate is usually very low as compared to the other financial instruments and it cannot offset inflation. B"!? f 6e* *e4os &s eing a safe investment option bank fi)ed deposits give interest rates around 5.85= to @=. A bank fi)ed deposit is recommended for those looking for preservation of capital along with current income in the short term. However, over long term the returns may not keep pace with inflation. O7>e(& 'e< To provide regular and fi)ed income to the account holders who wish to have regular and steady savings and earnings. R s?< Although not rated, fi)ed deposits facilitate 3CC= assurance of principal with interest rates regulated by . *. Bo!*s "!* *e7e!&,res They are long!term debt instruments with interest rate ranging between A!3@= per annum. Many types of debts and bonds have been structured to the investors with different time hori&ons. Though the risk is high they offer better returns when compared to bank fi)ed deposits. ut there is inflation risk involved.

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3@

O7>e(& 'e< *t is the safest investment and loans can be borrowed against bonds or debentures. R s?< The inflation and interest fluctuation affects investment decision. They have no commercial ratings.

Co%4"!2 *e4os &s< -i)ed investment schemes offered by various >ublic limited companies or the private sector may be cumulative or non!cumulative. They can be offered to the public as well as the e)isting shareholders and employees. Non! anking -inancial 0ompanies cannot offer more than 3;= of interest on the fi)ed deposits. O7>e(& 'e< *t confers faster capital appreciation and hence it is suitable for regular income holders and an investor can borrow against the deposits depending on the credit rating. R s?< *t is an unsecured investment and there is no asset backing and provides limited protection against inflation risk. Go#*< *n *ndia gold is more of a sense of security and a fi)ed asset rather than for any use or for the purpose of making profit or income. 'ince a long time it has been used e)tensively for speculation. 2old may be invested either in the form of gold shares which are banned in *ndia, gold coins, gold bars, gold 9ewellary etc. O7>e(& 'e< gold offsets inflation rates to some e)tent and offers good appreciation over a long period of time. R s?< there are no regular earnings and the rates fluctuate. (ven the rates of capital appreciation are not fi)ed or certain. Re"# es&"&e< 1and and house property are the main real estate investments. These investments are taken by and large number of people for hedging the inflation rates. O7>e(& 'e< in *ndia it is found that almost all banks and financial institutions consider land as good collateral. Hence it is considered a safe investment.

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R s?< investment in real estate involves a lot of pressures in terms of ta) payment for capital appreciation, stamp duties etc.

S:"res< *t is the most risky investment with highest returns in the long run. 'ense) indicates the price movements of shares on weighted average basis. /ividends up to .s.3CCC are not ta)ed O7>e(& 'e< to provide high capital appreciation and very high rates of dividend. R s?< being highly volatile the price movements depends on the market and the companyGs performance. The earning may even become negative. T"6 s"' !$ "'e!,es< P,7# ( 4ro' *e!& f,!*< *tGs a fi)ed income instrument having the following advantage 2et investors 8C= ta) e)emption on investment up to an amount of .s.<CCCC per year. 0ompounded interest rate at 38= p.a. interest being totally ta)!free. N"& o!"# s"' !$s (er& f ("&e< Another instrument more popular with the income ta) assesses is the N'0Gs that offerF 8C= ta) e)emption up to a ma)imum of .s.<CCCCp.a 0ompounded at 38= p.a *nterest occurring every year #ualifying for ta) benefit. Pe!s o! 4#"!< 0ertain notified retirement based mutual funds entitle investors to get a rebate of around 8C= up to an amount of .s.<CCCC p.a. There are other ta) benefits provided u?s@@ and sec.@C000

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

8C

).ANA.YSISBDESIGNC INTERPRETATION OF DATA Ne& Asse& V"#,e

DNe& "sse& '"#,eCD @NAVA of an investment company is the companyGs total assets minus its total liabilities. For e6"%4#eF *f an investment company has securities and other assets worth N3CC million and has liabilities of N3C million, the investment companyGs NAV will be NAC million. ecause an investment companyGs assets and liabilities change daily, NAV will also change daily. NAV might be NAC million one day, N3CC million the ne)t, and N@C million the day after. *n the conte)t of mutual funds, !e& "sse& '"#,e @NAVA is the total value of the fund6s portfolio less liabilities. The NAV is usually calculated on a daily basis. *n terms of corporate valuations, !e& "sse& '"#,e @NAVA is the book value of assets less liabilities. The NAV is usually below the market price because the current values of the fundGs assets are higher than the historical financial statements used in the NAV calculation. ut in the case of for e)ample 1iberty Media 0orporation, analysts and management has estimated that it6s actually trading for :C!5C= below its net asset value $or 5core asset value5%. 0hairman Lohn Malone said in a /ecember, 8CC; 0N 0 interview that his company is like a closed end mutual fund that is trading for a discount to its net asset value.

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Different mutual funds NAV

@I! E"$eA No F,!* !"%e 91=92 92=9) 9)=9+ 9+=99-=90 A HDFC E1, &2 83.2) 120.)8 131.55 131.+8 )95.50 B Re# "!(e Gro/&: 19-.+5 190.51)2.32 1-3.38 28).-5 C Fr"!?# ! I!* " B#,e (: 4 199.81+8.-) 105.00 10-.--5 25+.29 D A## "!(e E1, &2 21+.-2 )29.53 )+).2) )1-.21 2)).8) E S,!*"r"% Gro/&: 3-.+3 52.11 81.58 89.92 109.31 F B r#" A*'"!&"$e 102.09 15).88 18-.10 131.89 1)2.-8 G UTI M,&,"# f,!* -9.)0 -2.2+ -5.+0 -+.+3 193.2H GIC Gro/&: P#,s 8).55 53.5 50.)5 52 +2.92 I JM E1, &2 )2.-9 18.3+ 18.9+ 18.-2 2).)8 J ING VYSYA Se#e(& s&o(? 138.5) 228.52 21).39 2)8.)) 2+9

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GRO;TH OF NAV NAVs $ro/&: ("! 7e ("#(,#"&e* "s fo##o/s

Gro/&: F

@C,rre!& 2e"r=4re' o,s 2e"rA Pre' o,s 2e"r

X 199

*n the analysis various mutual funds growth can be calculated and they are compared 4ith other mutual funds. -or this purpose the above formula can be used and they are *nterpreted as follows

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

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Growth of NAVs
(In % age)

No

C Fr"!?# ! I!* " B#,e (: 4 == +5.12 12.38 =1.5+ 31.00

H GIC

F,!* !"%e

HDFC E1, &2 ==

Re# "!(e Gro/&: == 1.28 2+.21 15.55 50.9+

A## "!(e E1, &2 == +8.-3 0.80 =5.10 =2-.35

S,!*"r"% Gro/&: == 5.38 11.81 =2.9) 35.-2

B r#" A*'"!&"$e == 1).10.93 =11.81 =22.50

UTI

Gro/&: P#,s

JM E1, &2 == =)8.20 =).-+ 2.-1 18.52

ING VYSYA Se#e(& s&o(? == 23.5 =3.91 11.88 9.23

== ).3) 11.89 =0.52 80.58

== =0.+3 =1.01 =-.93 =+5.3-

91=92 92=9) 9)=9+ 9+=99-=90 )9 )-.8 9.2 59

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

8;

A!"#2s s of &:e "7o'e &"7#e

The various mutual funds growth can be analy&ed and they are compared with the other funds. H/-0 e#uity and .eliance mutual funds have got totally positive growthD their growth has been constantly increased when compared to previous year. 2*0 mutual fund has not achieved any positive growth, they got negative growth. 4hen compared to total mutual funds JT* has achieved a highest growth of A<.@A= in last year., following that reliance growth has achieved @<.C;= growth in last year in ; th year most of the companyGs has not achieved any positive growth . Among all the positive growths H/-0 has achieved a least growth of C.85 in the year8CC;!C5. L M (#uity has achieved two positive and two negative growth in the study.

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

85

A!"#2s s "!* I!&er4re&"& o!<

*nvestment consists of two attributes, .isk and .eturn. Higher the .isk so is the returns and vice versa. *nvestments can be classified in to short!term and long!term *nvestments. 'hort!term *nvestments are money market *nvestments and long!term *nvestments are capital market investments basically includes (#uity, /ebt, and Mutual funds. An investor may select the capital market investment based on his risk bearing ability, Mutual funds are a moderate risk!return trade off. E1, &2 * 'ers f e* f,!*s< No A B C D E F G H I J SENSEX NIFTY !ND NA"# HDFC E1, &2 Re# "!(e Gro/&: Fr"!?# ! I!* " 7#,e (: 4 A## "!(e E1, &2 S,!*r"% Gro/&: B r#" "*'"!&"$e UTI Pr %"r2 e1, &2 GIC Gro/&: P#,s II J M E1, &2 ING '2s2" se#e(& s&o(?s ============================= ============================= $%&$' 83.2) 19-.+5 199.821+.-2 3-.+3 102.09 -9.)0 8).55 )2.-9 138.5) )+.50 +1.82 $%&$( )9.23 1.)9 +5.1) +8.-5 5.59 1).10 ).3+ =0.+3 =)8.20 23.59 =2.5 0.01 A## f $,res "re ! = $%&$) 30.35 2-.5) 03.95 09.99 21.30 29.9) 10.1 =3.85 =+1.)15.5+ =0.++ +.55 $%&$* 30.)5 +8.09 0+.99 +0.8+ 18.25 -.32 5.13 =12.0=)8.8) )).98 =13.38 =8.13 $%&$+ 213.00 135.)) 151.-) 8.9112.8=15.+112.80 =--.2+ =25.9) )).+0 -9.30+.-2

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

8<

Des(r 4& o! of &:e f,!* Mutual fund family -und class *nception /ate Age of the fund Minimum investment -und asset si&e .o"* (ntry load ()it load 0lass (#uity +thers?Jnlisted Net receivable?>ayable A## "!(e C"4 &"# Asse& M$%& @I!* "A P'& .&*. (#uity /iversified Aug!8B!3AA@ B8 months .s. 5,CCC.CC 8<@.C8 crore 8.CC = C.CC = = 3C;.8; C.C8 !3:.;A

Por&fo# o of &:e f,!*< ,#-T./, Telecommunication harti Tele Ventures 'iemens "anufacturing >antaloon .etail allarpur *ndustries (ssel >ropack Automoti0e

E
1+. 9) B.B8 <.:3 12. 53 B.A8 :.33 3.@; 12. 15

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

8B

Tata Motors Maruti Jdyog 1harmaceuticals /ivis 1aboratories .anba)y 1aboratories 0adila Healthcare 0ipla -hemicals Jnited >hosphorous *ndian >etrochemicals 0orporation "iscellaneous Trent 0ontainer 0orporation of *ndia "etals 2 "ining Hindalco *ndustries Lindal *ron and 'teel 0ompany >'1 1imited Information Technology *nfosys Technologies Hindu9a TMT 3an4ing 2 inancial ,er0ices 'tate ank of *ndia Lammu and Mashmir ank 0anara ank *N2 Vysya ank .il 2 Gas 0hennai >etroleum 0orporation 2u9arat 2as 0ompany +il and Natural 2as 0orporation #ngineering 2 -a5ital Goods harat Heavy (lectricals -ood I everages Jnited reweries Jnited reweries Holdings "edia 2 #ntertainment (T0 Networks Net .eceivable ? >ayable +thers ? Jnlisted

B.C; 5.3; 11. 82 :.<C :.5B 8.5: 8.88 8. 02 @.88 3.;C 5. 03 B.:B 3.:C 5. +3 ;.3A 8.83 8.CB 5. )5.@@ 8.;B 0. 30 :.88 3.;B 3.3C C.AB 0. 08 :.@3 3.B5 3.3: -. -3 :.<A C.A; C.<C 9. 90 C. C< !3:.;A C.C8

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

8@

A## "!(e C"4 &"# Asse& M$%& @I!* "A P'& .&*. 0omparison of Alliance e#uity fund with market indicators $ '( 'ense) and Nifty.% T"7#e !,%7er ).1< C3!C8 83;.58 :;.@< ;3.A8 C3!C: ;A.5@ !8.@ <.<3 C3!C; <C.CC !<.;; ;.@@ C3!C5 ;<.A; !3B.BA !A.3B C3!C< A.C5 5C.B5 <;.58

Alliance e#uity '(N'(, N*-T7

Gr"4: !,%7er ).1<

250 200 150 100 50 0 0102 0103 0104 0105 01Alliance equity SENSEX NIFTY

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

-50

8A

C<

*t is seen from the above table and graph that Alliance e#uity fund outperformed the market portfolios, through out the different holding periods e)cept one year of which 83;.58= was the highest in 5 years holding period.

Des(r 4& o! "7o,& &:e f,!*< B r#" S,! . fe Asse& M"!"$e%e!& Mutual fund family -und class *nception /ate Age of the fund Minimum investment -und asset si&e 1oad (ntry load ()it load 0lass (#uity Money market Co%4"!2 .&*. (#uity /iversified -eb!8;!3AA5 335 Months .s. 5,CCC.CC ;C<.8@ crore 8.85 = C.CC = = @5.@8 C

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

:C

Por&fo# o of &:e f,!*< SECTORS E!$ !eer !$ G C"4 &"# Goo*s harat Heavy (lectricals Therma) harat (lectronics Co!$#o%er"&es 2rasim *ndustries Voltas Mesoram *ndustries I!for%"& o! Te(:!o#o$2 'atyam 0omputer 'ervices *nfosys Technologies >atni 0omputer 'ystems 0M0 Te#e(o%%,! ("& o! harti Tele Ventures 'iemens A,&o%o& 'e Mahindra and Mahindra Maruti Jdyog Ashok 1eyland O # G G"s *ndian +il 0orporation 0hennai >etroleum 0orporation Me&"#s G M ! !$ 'teel Authority of *ndia National Aluminium 0ompany B"!? !$ G F !"!( "# Ser' (es 'tate ank of *ndia 0anara ank Vi9aya ank Ser' (es 2reat (astern 'hipping 0ompany 0hemicals Jnited >hosphorous .eliance *ndustries >harmaceuticals 0adila Healthcare /ebt 0ash ? 0all +thers ? Jnlisted E 1).-2 <.C; :.@; :.<: 3C.:5 5.B8 :.C8 3.<3 19.29 5.C3 8.5: 3.B8 C.A; 8.5+ 5.<3 ;.8: 8.+;.;5 :.3; 3.@< 5.03 ;.;3 ;.8< 5.10 ;.;3 :.B5 0.35 :.8< 3.@5 3.<B ;.;A ;.;A :.58 :.5C C.C: C.@5 C.@5 C.C5 38.<A 3.;8

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

:3

3irla ,un 6ife Asset "anagement -om5any 6td.

0omparison of irla advantage fund with market indicators $ '( 'ense) and Nifty.% T"7#e !,%7er ).2< C3!C8 3<8.< :;.@< ;3.A8 C3!C: 3:.3< !8.@ <.<3 C3!C; 8C.C: !<.;; ;.@@ C3!C5 5.B8 !3B.BA !A.3B C3!C< !3@.;5 5C.B5 <;.58

irla advantage '(N'(, N*-T7

Gr"4: !,%7er ).2<

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

:8

200 *t is 150 seen from the table and graphs that irla advantage fund outperformed the market Birla advanta e indicators, 100 but the return showed negative in 3year of which 3<8.<=was the highest in SENSEX 5years holding period. 50 NIFTY 0 0101010101-50 02 03 04 05 06

Des(r 4& o! "7o,& &:e f,!* < Fr"!?# ! Te%4#e&o! Asse& M$%&. @I!* "A Mutual fund family -und class *nception /ate Age of the fund Minimum investment -und asset si&e 1ast dividend P'&. .&*. (#uity /iversified Nov!:C!3AA: 38A Months .s. 5,CCC.CC 3@:B.@C crore 8.CC per unit

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

::

1oad (ntry load ()it load 0lass (#uity +thers?Jnlisted

8.85 = C.CC = = A;.@3 C.;B

Por&fo# o of &:e f,!*< SECTOR I!for%"& o! Te(:!o#o$2 *nfosys Technologies 'atyam 0omputer services H01 Technologies 0M0 O # G G"s harat >etroleum 0orporation Hindustan >etroleum 0orporation 2A*1 *ndia +il and Natural 2as 0orporation B"!? !$ G F !"!( "# Ser' (es 'tate ank of *ndia 1*0 Housing -inance H/-0 ank *0*0* ank A,&o%o& 'e Hero Honda Motors Tata Motors Ashok 1eyland To7"((o *T0 0hemicals .eliance *ndustries = 15.)0 @.:3 5.5@ ;.:C C.3B 1-.)) <.<@ :.A@ :.CC 3.<B 1+.-1 B.C5 :.:< 8.<5 3.;5 5.1) :.;< 8.@@ 3.BA 0.30 <.B: 5.:<

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

:;

*ndian >etrochemicals 0orporation Asian >aints $*ndia% Metals I Mining Hindalco *ndustries Tata *ron and 'teel 0ompany 0onglomerates 2rasim *ndustries Telecommunication Mahanagar Telephone Nigam 1T/ E!$ !eer !$ G C"4 &"# Goo*s 1arsen and Toubro Ce%e!& G Co!s&r,(& o! Associated 0ement 0ompanies Ser' (es 2reat (astern 'hipping 0ompany M"!,f"(&,r !$ *ndian .ayon and *ndustries P:"r%"(e,& ("#s /r .eddys 1aboratories 'un >harmaceutical *ndustries Me* " G E!&er&" !%e!& TV Today Network 0ash ? 0all +thers ? Jnlisted

C.B: C.<; <.;C ;.BA 3.<3 5.<3 5.<3 :.B5 :.B5 ).90 :.C< 2.00 8.<< 2.9) 8.C: 9.82 C.A8 9.)8 C.:B C.C8 -.)3 C.3B ;.B: C.;B

Fr"!?# ! Te%4#e&o! Asse& M"!"$e%e!& @I!* "A P'&. .&*. 0omparison of -ranklin Mutual -unds with Market *ndicators $ '( 'ense) and N*-T7%

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

:5

T"7#e ).) C3!C8 -ranklin *ndia blue chip '(N'(, N*-T7 Gr"4:< ).) 3CC.A5 :;.@< ;3.A8 ;@.3: !8.@ <.<3 <B.C@ !<.;; ;.@@ <;.CC !3B.BA !A.3B 3@3.5: 5C.B5 <;.58 C3!C: C3!C; C3!C5 C3!C<

200 150 100 50

Des(r 4& o! of &:e f,!*<

Fran!lin"India #lue"c$i% SENSEX NIFTY

HDFC Asse& M"!"$e%e!&

01-02 01-03 01-04 01-05 01-06 Co. .&*. Mutual fund family -50 -und class (#uity /iversified
*nception /ate /ec!C@!3AA;

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

:<

Age of the fund Minimum investment -und asset si&e 1oad (ntry load ()it load 0lass (#uity +thers?Jnlisted /ebt Money market 0ash?call Net receivable?>ayable

33B months .s. 5,CCC.CC 3CA:.5B crore 8.85 = C.CC = = AB.<8 C C 8.8A C.CA C

Por&fo# o of &:e f,!*< SECTORS E!$ !eer !$ G C"4 &"# Goo*s harat Heavy (lectricals harat (lectronics 0rompton 2reaves 1arsen and Toubro I!for%"& o! Te(:!o#o$2 'atyam 0omputer 'ervices Tata 0onsultancy 'ervices /atamatics Technologies 1td 0M0 /!1ink $*ndia% B"!? !$ G F !"!( "# Ser' (es 'tate ank of *ndia *ndian +verseas ank Vi9aya ank -ederal ank Co!$#o%er"&es E 13.23 B.@8 ;.5C ;.:C C.<5 1-.0@.@5 8.:< 8.C: 3.AA C.;8 12.92 @.3C 3.<: 3.3B 3.38 11.))

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

:B

2rasim *ndustries 0entury Te)tiles and *ndustries Voltas C:e% ("#s .eliance *ndustries Jnited >hosphorous A,&o%o& 'e Amtek Auto Mahindra and Mahindra Maruti Jdyog Me* " G E!&er&" !%e!& Oee Telefilms O # G G"s *ndian +il 0orporation M s(e##"!eo,s 0ontainer 0orporation of *ndia Te#e(o%%,! ("& o! Tata Telecom M"!,f"(&,r !$ *ndo .ama 'ynthetics $*ndia% P:"r%"(e,& ("#s /ishman >harmaceuticals I 0hemicals C"s: B C"## Mo!e2 M"r?e& O&:ers B U!# s&e*

<.3: ;.;@ C.B8 11.)2 <.A< ;.:< 19.9:.;; :.:: :.8@ -.13 5.3B +.+0 ;.;< ).95 :.C@ ).9:.C5 2.2+ 8.8; 1.85 3.A@ 9.98 2.28 9.99

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

:@

HDFC Asse& M"!"$e%e!& Co. .&*. 0omparison of H/-0 e#uity fund with market indicators $ '( 'ense) and Nifty.% T"7#e !,%7er ).+H C3!C8 H/-0 '(N'(, N*-T7 Gr"4: !,%7er ).+< AB.8: :;.@< ;3.A8 C3!C: :C.8B !8.@ <.<3 C3!C; B<.B@ !<.;; ;.@@ C3!C5 B<.:@ !3B.BA !A.3B C3!C< 83B.<< 5C.B5 <;.58

250 200

The150 table and graph shows that H/-0 (#uity fund outperformed the market indicators,
&"'"F"( NIFTY

through in the short run 100 out the different holding periodD the fund was well managed bothSENSEX and long run.
50 0 -50 01-02 01-03 01-04 01-05 01-06

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

:A

Des(r 4& o! of &:e f,!* Mutual fund family -und class *nception /ate Age of the fund Minimum investment -und asset si&e 1oad (ntry load ()it load 0lass (#uity +thers?Jnlisted /ebt Money market 0ash?call Net receivable?>ayable Por&fo# o of &:e f,!*< SECTORS I!for%"& o! Te(:!o#o$2 'atyam 0omputer 'ervices *nfosys Technologies H01 Technologies 4ipro He)aware Technologies P:"r%"(e,& ("#s 'un >harmaceutical *ndustries iocon +,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore. E 18. 09 ;.B5 :.AC :.B: :.<8 :.<C 1-.3:.<; 8.A8 ;C ING V2s2" M,&,"# F,!* (#uity /iversified May!CB!3AAA <; months .s. 8,CCC.CC :@.C5 crore 8.CC = C.CC = = A5.@A C C C ;.33 C

0adila Healthcare /ivis 1aboratories 1upin 4ockhardt Te#e(o%%,! ("& o! harti Tele Ventures Mahanagar Telephone Nigam U& # & es .eliance (nergy Tata >ower 0ompany >ower Trading 0orporation B"!? !$ G F !"!( "# Ser' (es 'tate ank of *ndia +riental ank of 0ommerce O # G G"s *ndian +il 0orporation Hindustan >etroleum 0orporation harat >etroleum 0orporation A,&o%o& 'e Mahindra and Mahindra Maruti Jdyog M"!,f"(&,r !$ Arvind Mills .aymond Ce%e!& G Co!s&r,(& o! Associated 0ement 0ompanies Laiprakash *ndustries *ndia 0ements Co!$#o%er"&es 2rasim *ndustries Me&"#s G M ! !$ 'teel Authority of *ndia Foo* G Be'er"$es Tata Tea E!$ !eer !$ G C"4 &"# Goo*s harat Heavy (lectricals Media I (ntertainment Oee Telefilms Co!s,%er No!=*,r"7#es Hindustan 1ever C"s: B C"##

8.@< 8.;A 3.A; 3.AC 5.12 ;.@8 :.:C 5. 9) :.8< 8.<3 8.3< 3. 20 ;.A@ 8.8@ 3. 95 :.3; 8.38 3.@8 -. 80 :.B@ 8.3@ -. 23 8.BA 8.;@ +.30 8.<< 3.:8 C.B@ ).30 :.B< ).+5 :.;@ 2.-1 8.53 2. ++ 8.;; 1. +8 3.;A 9. )5 C.:@ +.11

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

;3

ING V2s2" M,&,"# F,!* 0omparison of *N2 Vysya select stocks fund with market indicators $ '( 'ense) and Nifty.% T"7#e !,%7er ).-< C3!C8 3BA.@: :;.@< ;3.A8 C3!C: 8B.@ !8.@ <.<3 C3!C; 3@.@; !<.;; ;.@@ C3!C5 ::.CA !3B.BA !A.3B C3!C< ::.;< 5C.B5 <;.58

*N2 vysha '(N'(, N*-T7

Gr"4: !,%7er ).-<

200 150 -rom the table and graph it is seen than all the years gave better return than sense) nifty

e)cept one year which gave less return when compared to sense) and IN)"vy*$a nifty.
100 SENSEX NIFTY 50 0

+,-+./ -50 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

01-02

01-03

01-04

01-05

01-06

;8

Des(r 4& o! of &:e f,!*< Mutual fund family -und class *nception /ate Age of the fund Minimum investment -und asset si&e 1oad (ntry load ()it load 0lass (#uity +thers?Jnlisted /ebt Money market 0ash?call Net receivable?>ayable Por&fo# o of &:e f,!*< SECTORS A,&o%o& 'e Maruti Jdyog Tata Motors Mahindra and Mahindra E 1).85 ;.8@ :.;B :.:C J.M. C"4 &"# M"!"$e%e!& P'&. .&*. (#uity /iversified Lun!3;!3AA5 33: months .s. 5,CCC.CC 55.35 crore 8.85 = C.CC = = @C.:8 C.CC 38.<: C B.C; C

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

;:

Amtek Auto Me&"#s G M ! !$ 'teel Authority of *ndia Tata *ron and 'teel 0ompany Hindalco *ndustries I!for%"& o! Te(:!o#o$2 Tata 0onsultancy 'ervices *!-le) 'olutions /!1ink $*ndia% 'atyam 0omputer 'ervices C:e% ("#s *ndian >etrochemicals 0orporation .eliance *ndustries P:"r%"(e,& ("#s 4ockhardt Aventis >harma .anba)y 1aboratories /ivis 1aboratories 1upin O # G G"s +il and Natural 2as 0orporation * > 0ompany Ce%e!& G Co!s&r,(& o! 2u9arat Ambu9a 0ements 'hree 0ements Laiprakash Associates Te#e(o%%,! ("& o! harti Tele Ventures M"!,f"(&,r !$ Asahi *ndia 2lass Ser' (es 'hipping 0orporation of *ndia U& # & es .eliance (nergy B"!? !$ G F !"!( "# Ser' (es 'tate ank of *ndia E!$ !eer !$ G C"4 &"# Goo*s harat Heavy (lectricals Co!s,%er No!=*,r"7#es Hindustan 1ever De7& C"s: B C"##

8.A; 12.53 <.88 ;.3; 8.53 11.)9 ;.@5 ;.38 3.B@ C.55 8.-8 5.CA ;.;A 8.+) 8.<< 8.<; 3.AA 3.5: C.<3 5.19 ;.8C :.AC 3. 0) :.@@ :.CC C.B5 -.-) 5.5: ).39 :.BC ).+0 :.;< ).25 :.8@ 2.89 8.AC 1.90 3.C< 9.03 C.<B 9.93 3.9+

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

;;

J.M. C"4 &"# M"!"$e%e!& P'&. .&*. 0omparison of LM e#uity fund with market indicators $ '( 'ense) and Nifty.% T"7#e !,%7er ).0< L M (#uity '(N'(, N*-T7 Gr"4: !,%7er ).0< C3!C8 :8.5 :;.@< ;3.A8 C3!C: !:A.8< !8.@ <.<3 C3!C; !;3.:5 !<.;; ;.@@ C3!C5 !:A.A: !3B.BA !A.3B C3!C< !8@.C: 5C.B5 <;.58

+0 60 The fund was well correlated with 'ense) and it outperformed 'ense) only in 5 years 40 ,"-"Equity holding 20 period. SENSEX 0 NIFTY -20 -40 +,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore. ;5 -60 01-02 01-03 01-04 01-05 01-06

Des(r 4& o! "7o,& &:e f,!*< Re# "!(e C"4 &"# Asse& M"!"$e%e!& Mutual fund family -und class *nception /ate Age of the fund Minimum investment -und asset si&e 1oad (ntry load ()it load 0lass (#uity +thers?Jnlisted /ebt Money market 0ash?call .&*. (#uity /iversified 'ep!C@!3AA5 3C@ months .s. 5,CCC.CC 5C;.A@ crore 8.CC = C.CC = = B5.8@ @.BC C C 3<.C8 ;<

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

Net receivable?>ayable Por&fo# o of &:e f,!*< SECTORS A,&o%o& 'e Hero Honda Motors Ashok 1eyland 'undram -asteners Mun9al Auto *ndustries Tata Motors 'wara9 Ma&da Amforge *ndustries P:"r%"(e,& ("#s /ivis 1aboratories 2la)o'mithMline >harmaceuticals urroughs 4ellcome $*ndia% 'tride Arcolab /ishman >harmaceuticals I 0hemicals Me&"#s G M ! !$ Lindal 'teel I >ower Maharashtra 'eamless Hindustan Oinc Mirloskar -errous *ndustries Co!$#o%er"&es 2rasim *ndustries 'inte) *ndia 0entury Te)tiles and *ndustries E!$ !eer !$ G C"4 &"# Goo*s 0rompton 2reaves Mirloskar rothers N. earings I!for%"& o! Te(:!o#o$2 He)aware Technologies 2eometric 'oftware 'olutions 0o C:e% ("#s Jnited >hosphorous (*/ >arry $*ndia% Micro *nks Ce%e!& G Co!s&r,(& o! Laiprakash Associates Nagar9una 0onstruction 0o. Foo* G Be'er"$es .adico Mhaitaan alrampur 0hini Mills

E 12.99 8.:5 8.C< 3.@A 3.<B 3.;5 3.;3 3.3B 8.33 8.8: 8.83 8.CB 8.C3 3.8< 8.11 :.;B 8.35 3.@@ 3.<3 3.32 ;.B: 3.<8 3.:B 3.)9 ;.CB 3.@3 3.;8 0.1:.35 :.CC 0.19 :.83 3.B8 3.3B +.0:.53 3.35 ).82 3.A@ 3.A; ;B

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

M"!,f"(&,r !$ >olyple) 0orporation 4elspun *ndia B"!? !$ G F !"!( "# Ser' (es *N2 Vysya ank 0onsumer Non!durables ata *ndia Te#e(o%%,! ("& o! Tata Telecom Me* " G E!&er&" !%e!& TV Today Network C"s: B C"## O&:ers B U!# s&e*

2.20 3.8C 3.C< 1.83.A5 1.83.A5 1.23.85 1.1+ 3.3; 10.92 5.39

Re# "!(e C"4 &"# Asse& M"!"$e%e!& .&*. 0omparison of .eliance 2rowth fund with market indicators $ '( 'ense) and Nifty.% T"7#e !,%7er ).3< C3!C8 3C5.;@ :;.@< ;3.A8 C3!C: 3.: !8.@ <.<3 C3!C; 85.@: !<.;; ;.@@ C3!C5 ;A.< !3B.BA !A.3B C3!C< 3B@.:: 5C.B5 <;.58

.eliance '(N'(, 33N*-T7

Gr"4: !,%7er ).3<

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

;@

200 150from the table and graph that .eliance 2rowth fund outperformed the market *t seen .eliance portfolios, 100 both in the short term as well as long term holding periods. SENSEX 50 NIFTY 0 -50 01-02 01-03 01-04 01-05 01-06

Des(r 4& o! "7o,& &:e f,!*< Mutual fund family -und class *nception /ate Age of the fund Minimum investment -und asset si&e 1oad (ntry load ()it load 0lass S,!*"r"% Asse& M$%& Co. .&*. (#uity /iversified Apr!8;!3AAB @A months .s. 8,CCC.CC 38C.8: crore 8.CC = C.CC = =

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

;A

(#uity +thers?Jnlisted /ebt Money market 0ash?call Net receivable?>ayable

A@.C< C.:5 C C 3.5A C

Por&fo# o of &:e f,!*< SECTORS I!for%"& o! Te(:!o#o$2 *nfosys Technologies 'atyam 0omputer 'ervices 4ipro *!-le) 'olutions M>*T 0ummins *nfosystems Me&"#s G M ! !$ Tata *ron and 'teel 0ompany Hindalco *ndustries National Aluminium 0ompany 'teel Authority of *ndia (ssar 'teel 'esa 2oa Man *ndustries $*ndia% A,&o%o& 'e Maruti Jdyog a9a9 Auto Hero Honda Motors Tata Motors Mahindra and Mahindra Malyani rakes B"!? !$ G F !"!( "# Ser' (es 'tate ank of *ndia *0*0* ank >un9ab National ank *ndian +verseas ank Ce%e!& G Co!s&r,(& o! 2u9arat Ambu9a 0ements +,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore. E 10.9;.;; ;.3: :.<; :.:@ C.;5 1).53 :.BA :.;; 8.AB 3.AA C.A5 C.;A C.8; 8.+0 :.C< 8.@: 3.CB 3.C5 3.C5 C.;C 5.)1 8.<B 3.A< 3.@< 3.@8 3.+) :.B: 5C

Associated 0ement 0ompanies >rism 0ement E!$ !eer !$ G C"4 &"# Goo*s 'hanthi 2ears harat Heavy (lectricals A 0rompton 2reaves Therma) O # G G"s +il and Natural 2as 0orporation *ndian +il 0orporation 0hennai >etroleum 0orporation P:"r%"(e,& ("#s 0ipla Nicholas >iramal 0adila Healthcare C:e% ("#s .eliance *ndustries *ndian >etrochemicals 0orporation Foo* G Be'er"$es Tata Tea Te#e(o%%,! ("& o! 'iemens harti Tele Ventures Co!$#o%er"&es 0entury Te)tiles and *ndustries 2rasim *ndustries Ser' (es 'hipping 0orporation of *ndia To7"((o *T0 Co!s,%er No!=*,r"7#es /abur *ndia U& # & es >ower Trading 0orporation M"!,f"(&,r !$ *ndian .ayon and *ndustries C"s: B C"## O&:ers B U!# s&e*

:.8@ C.;8 3.20 8.8@ 3.B8 3.;: 3.C< C.B< 3.10 8.B@ 8.;: 3.A5 0.09 :.BB 8.3B C.<5 -.15 :.B@ 3.;3 ).39 :.BC ).08.53 3.3; 2.8) 8.:C C.<: 2.1) 8.3: 1.89 3.AC 9.80 C.A< 9.82 C.A8 9.-+ C.5; 1.-8 9.)-

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

53

S,!*"r"% Asse& M$%& Co. .&*. 0omparison of 'undram2rowth fund with market indicators $ '( 'ense) and Nifty.% T"7#e !,%7er ).5< C3!C8 B5.;B :;.@< ;3.A8 C3!C: @.@ !8.@ <.<3 C3!C; 83.B< !<.;; ;.@@ C3!C5 3A.8@ !3B.BA !A.3B C3!C< 338.5 5C.B5 <;.58

'undram '(N'(, N*-T7 Gr"4: !,%7er ).5<

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

58

120 100 +0 *t is seen from the table and graph that 'undram growth fund has given better return 60 Sundra/ through out the holding periods. 40 SENSEX 20 0 -20 -40 01-02 01-03 01-04 01-05 01-06 NIFTY

Des(r 4& o! "7o,& &:e f,!*< Mutual fund family -und class *nception /ate Age of the fund Minimum investment -und asset si&e 1oad (ntry load ()it load UTI Asse& M$%& Co%4"!2 P'&. .&*. (#uity /iversified Apr!8;!3AA5 33: months .s. 5,CCC.CC @8.CB crore 8.CC = C.CC = = 5:

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

0lass (#uity +thers?Jnlisted /ebt Money market 0ash?call Net receivable?>ayable Por&fo# o of &:e f,!*< SECTORS B"!? !$ G F !"!( "# Ser' (es 'tate ank of *ndia '.(* *nternational -inance 0orporation ank *ndustrial /evelopment ank of *ndia *0*0* ank Vi9aya ank Nicco Jco -inancial 'ervices >A1 0redit and 0apital A,&o%o& 'e ()ide *ndustries Maruti Jdyog Mahindra and Mahindra (scorts Hero Honda Motors Ashok 1eyland Tata Motors Automotive A)les 'undram -asteners I!for%"& o! Te(:!o#o$2 'atyam 0omputer 'ervices H01 Technologies *nfosys Technologies 4ipro Hughes 'oftware 'ystems V and M 'oftech C:e% ("#s .eliance *ndustries *ndian >etrochemicals 0orporation *ndo 2ulf -ertili&ers @:.<3 C.C@ ;.8A C 38.C8 C E 11.)8 :.<; 8.<< 3.5< 3.;: 3.:@ C.<B C.C; C.C3 19.)3.@8 3.;5 3.;C 3.3C 3.C5 C.AA C.AB C.@C C.BB 8.)3 :.C5 3.A@ 3.B8 3.B8 C.AC C.CC 5.)8 :.5; 8.53 3.88

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

5;

.ashtriya 0hemicals and -ertilisers .ain 0alcining P:"r%"(e,& ("#s iocon .anba)y 1aboratories Nicholas >iramal 0ipla -/0 >fi&er O # G G"s +il and Natural 2as 0orporation >etronet 1N2 1td 2A*1 *ndia harat >etroleum 0orporation *ndian +il 0orporation horuka 2ases 'hri 'hakti 1>2 E!$ !eer !$ G C"4 &"# Goo*s harat Heavy (lectricals Therma) 0ummins *ndia Modern *nsulators harat (lectronics A .aymond 2ontermann >eipers $*ndia% LM> 0astings Ce%e!& G Co!s&r,(& o! Associated 0ement 0ompanies 'hree 0ements M s(e##"!eo,s /redging 0orporation *ndia 0ontainer 0orporation of *ndia Co!$#o%er"&es 2rasim *ndustries Me&"#s G M ! !$ Lindal *ron and 'teel 0ompany Neyveli 1ignite 0orporation To7"((o *T0 Te#e(o%%,! ("& o! harti Tele Ventures U& # & es .eliance (nergy (nergy /evelopment 0ompany +,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

3.CC C.38 5.90 3.A3 3.@< 3.BB 3.CC C.@: C.<A 0.3+ 3.B5 3.;@ 3.8C C.AB C.A3 C.:B C.C< 0.+3.@: 3.<C 3.C@ 3.C3 C.B3 C.88 3.8C C.3: C.CA ).18.@C C.:5 ).90 3.@5 3.83 2.+8 8.;A 2.)) 3.B8 C.<3 2.)) 8.:: 1.-9 3.5C 1.)8 3.CB C.:8 55

'ervices 2reat (astern 'hipping 0ompany Me* " G E!&er&" !%e!& New /elhi Television 1td De7& C"s: B C"## O&:ers B U!# s&e*

1.91 3.C3 9.)C.:5 +.28 12.92 9.95

UTI Asse& M$%& Co%4"!2 P'&. .&*. 0omparison of JT* >rimary e#uity fund with market indicators $ '( 'ense) and Nifty.% T"7#e !,%7er ).8<

JT* '(N'(, N*-T7 Gr"4: !,%7er ).8<

C3!C8 5C.:< :;.@< ;3.A8

C3!C: :.B; !8.@ <.<3

C3!C; 3<.3 !<.;; ;.@@

C3!C5 @.3B !3B.BA !A.3B

C3!C< 338.A< 5C.B5 <;.58

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

5<

120 -rom the above table and graph it is seen that all the year gave a better return than 'ense)
and 100 Nifty and the return from the J T * -und was low only in 8 years holding periods.

+0 60 40 20 0 -20 -40 01-02 01-03 01-04 0"T"I SENSEX NIFTY

+. FINDINGS

01-05

01-06

3. The analysis of 3C (#uity /iversified Mutual funds based on NAV returns for a period of 5 years ranked, H / - 0 (#uity fund as 3 st with 83B.<<= followed by -rank line *ndia blue chip fund as 8 nd with 3@3.5:= and .eliance growth fund as :rd with 3B@.::=, JT* fund had only average performance 8. Alliance (#uity fund outperformed the 'ense) and Nifty, through out the different holding periods of which 83;.58= was the highest in 5year holding period. :. irla advantage fund out performed the market indicators in which 3<8.<= was highest in 3year holding period.

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

5B

;. -rank line *ndia blue chip fund was managed efficiently showing better performance in different holding periods, compared to market portfolios. 5. 2*0 growth plus fund had higher degree correlation with 'ense) was found to perform same as 'ense). <. H/-0 (#uity fund out performed the market indicators. The fund was well managed both in short term as well as long term of which 83B.<<= was the highest in 5 year holding period. B. *N2 Vysya 'elect stock fund was performed better than market in long term i.e. ; years. *n short time periods the returns were much lower than 'ense) which indicating high degree of risk. @. L M (#uity fund had similarity with 'ense) in different time periods. A. .eliance 2rowth fund out performed the market portfolio through out the different holding periods of which 3B@.::= was the highest in the 5!year holding periods 3C. JT* was found to perform better than 'ense) but lower when compare to Nifty in one year holding period.

-. SUGGESTIONS
3% The Mutual -und companies should utili&e this opportunity of soft interest regime followed by the banks and attract the fi)ed deposit and the savings ank Account *nvestors. 8% The Mutual -und Asset Management companies should (ducate and give Awareness about the concept of Mutual -unds to the investors. As ma9ority of the investors do not know what a Mutual -und is. And it should highlight the benefits of mutual fund over other investment and attract more number of custo

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

5@

:% The Mutual -und Asset Management companies come up with more advertisements and promotional measures and it should also target the - * *Gs and individual investors who invest in the capital markets. ;% Always the fund should state the ob9ective of each fund floated by the Asset Management 0ompany to the investors so that the right investors choose the right fund.

0. CONC.USIONS
The awareness about Mutual -und is being increasing every day and more number of investors are investing in the Mutual -unds in *ndia, today itGs one of the safest investment in the country. The biggest advantage of the Mutual -unds that is attracting the investors is the diversified investment and transparency in the operation of the Asset management 0ompany. The scope of development of the Mutual -und industry is very wide in *ndia

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

5A

ecause it not only caters to the need of the individual investors but also to institutional investors +ne thing is for sure the Mutual -und industry is here to stay for years.

3.BIB.IOGRAPHY
I!&er!e&<= www.google.com www.indiainfoline.com www.amfi.com www.moneycontrol.com www.financeprofessor.com www.e#uitymaster.com

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

<C

Ne/s 4"4ers<= 3. (conomic times 8. usiness line

Boo?s referre*H = "*nvestment managementE! >reeti 'ingh, Himalaya publishing house. "*nvestment managementE! V.A.Avadhani, Himalaya publishing house. "-inancial managementE! *.M.>andey, Vikas >ublishing House.

O&:er so,r(esH = /ifferent companyGs fact sheets *nformation from the company

+,-+./ 0+11(2( +- (N2*N((.*N2 /ept of M A, angalore.

<3