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A Comparative Performance Evaluation of BSL MF Schemes

With Its Peer Group Mutual Fund Scheme


Adept Institute of Management Studies and Research Dharwad. Page 1

EXECUTIVE SUMMARY
Mutual fund are financial intermediaries, which collect the savings of investors and
invest in a large and well-diversified portfolio of securities such as money market
instruments(Treasury bills, commercial papers, certificate deposits), corporate and
government bonds and equity shares of joint stock companies depending upon its objectives.
Origin of Mutual Fund Investing: When three Boston securities executives pooled
their money together in 1924 to create the first mutual fund. The mutual fund industry in
India started in 1963 with the formation of Unit Trust of India. Mutual fund industry is todays
Asset Under Management, or AUM, of the Indian mutual fund industry increased 9.6 % or by Rs.77, 500
crore in March 2014 to a record high of Rs.9.50 trillion.
The Birla Sun Life Asset Management Company Ltd. (BSLAMC) established in the
year 1994, BSL AMC is the investment manager of Birla Sun Life Mutual Fund, is a joint
venture between the Aditya Birla Group and the Sun Life Financial Inc. of Canada. With this
aim it has successfully catered its products to customers from past 20 years which has been
highly appreciated in the market and its 4
th
largest AMC in India.
During my research period, I found that performance of Birlas funds along with other
major peer group mutual fund schemes research on A Comparative Performance
Evaluation of Birla Sun Life Mutual Fund Schemes with Its Peer Group Mutual Fund
Scheme and tried find out current performance position with other 7 other funds schemes.
For study I have been used last 5 year (1
st
April 2009 to 31
st
March 2014) secondary NAV
data.
And based on research information, findings were analysed and suitable suggestions were
made to the Investors in order to invest in Birlas short term and medium term funds, but long
term and ELSS schemes other funds are performing well.
I conclude that the company should be improving the performance as per market standards
and its competitor fund schemes. An investor should know about all risk and return from each
fund schemes then invest in that helps to avoid risks and get good returns.


A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 2

Introduction of Study
World domination largely depends upon economy and technological development of a
country which requires huge all kind resources. To mobilize these resources in order to meet
out the diversified fund requirement for overall growth and global economic competition
central banks as the apex body and wide spectrum of financial intermediaries have come into
existence across the world. Efforts to achieve these internal and external objectives,
government has drastically and dramatically adopted and implemented policies and
procedures of liberalization, privatization, and globalization which resulted high degree of
competition in Indian economy and created unexplored opportunities to all players with new
high breed diversified product range and operational efficiency. In order to strengthening the
efforts GOI & regulator of mutual fund industry requires effective and efficient execution of
adopted strategy for financial liberalization. It is noted that the mutual funds industry in India
has also attained maturity and has grown dramatically over the last twenty years which can be
assessed by the quantum of secondary trading and variety of funds offered by the issuers. Due
to its stupendous growth mutual fund industry is socially bound to be transparent in quality of
financial reporting; and is subject to a large amount of research which ethically contributes to
our knowledge and provides appropriate answers to the everlasting issues like performance
measurement, style, managers compensation.

Some issues however remain obscure and need attention to learn their peculiarity and
develop ultimate solution as well. It is found that in India the concept of a socially
responsible fund and schemes especially focusing upon the clientele in select age group are
not common and investors are largely unknown to such type of financial instruments which
are also known as ethical funds and aims to cater the need of a population segment with
personal ethical codes under certain predetermined amount of risk. It is been observed that
under the ages of globalization demand for finance has grown many fold and fueled the
capital market. With flood of new and high breed financial instrument in market it became
necessary to understand the meaning, use, importance and benefit of mutual fund which are
also known as Investment Trust, Investment Company, Money Fund etc. In general, the term
mutual denote that all gains or losses resulting from the investment accrue to all the
investment in proportion to their subscription. It is an American concept which played a
supportive role in bridging the gap between supply and demand in contrast to other financial
instruments in the capital market and now it is widely acknowledged across the world. It
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 3

worked as a connecting bridge or plays a role of a financial intermediary which is jointly
managed by professional money managers and allows common investors to pool their money
together with a predetermined investment objective with certain risk. According to Securities
and Exchange Board of India (Mutual Fund) Regulations, 1996 defines mutual funds as a
fund established in the form of a trust to raise monies through the sale of units to the public or
a section of the public under one or more schemes for investing in securities including money
market instruments.

In present volatile financial market mutual funds have became essentially investment
vehicle especially for bingers. Common investors with common objective club together and
pool their money in hope of future appreciation. Investing in mutual fund means, buying
some units or portions of mutual fund and becoming shareholder or unit holder of the fund
with the advantage of diversification (Diversification means, spreading out your invested
amount across available or different types of investments) which balance the investment,
minimizes risk to certain extent& rationalize returns. The beauty of mutual fund is, invested
money in it diversify automatically in a set category of investments and investment which are
made in mutual fund are managed by fund manager who are qualified professional and are
been authorized by the board / Trust with specific guidelines issued by SEBI and other
regulatory bodies and are responsible for investing the pooled money of investors in
classified schemes which are launched on regular intervals, like open ended scheme (which
do not have any fixed maturity period), close ended scheme (which have fixed maturity
period).

In process the fund manager on investors behalf buy units of funds in securities
ranging from equity, preference share to debentures of emerging or mid size companies,
growth companies, low-grade corporate bonds to money market instruments which are spread
across a wide cross-section of industries and sectors that best suits investor risk apatite,
preferences and needs depending on the objective of the scheme. Later, on the maturity of
scheme the realized income through market investment and the capital appreciation are
distributed amongst the investors by way of dividend or net asset value (NAV) appreciation
in proportion to the number of unit investor posses. By Investing in mutual fund investors
enjoy triple benefits that are minimum risk, steady return and capital appreciation to tighten
governance and disclosure rules and establishing foolproof monitoring system to eliminate
unethical practices which are in practice for long due to orthodox financial market system.
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 4

Due to these significant distinctions mutual fund has established itself as a dark horse in the
area of financial services worldwide and grown rapidly in comparison to others financial
instrument.
It is widely accepted that mutual funds are highly regulated and provide excellent
investor protection; Government of India (GOI) through Reserve Bank of India (RBI) has
made Securities and Exchange Board of India (SEBI) as a key body to formulate policies,
procedures and regulates the mutual funds and issues guidelines from time to time. It notified
regulations issued in 1993 were fully revised in 1996 in public interest which authoritatively
regulates MF either promoted by public or by private sector entities including promoted by
foreign entities.
The commencement of MF require registration certificate which is obtained from
SEBI. According to SEBI Regulations, two thirds of the directors of Trustee Company or
board of trustees must be independent. Further, SEBI approved Asset Management Company
(AMC) who with following the guidelines manages the funds by making investments in
various types of securities and registered the Custodian who holds the securities of various
schemes of the fund in its custody.
In addition these Rules regulations and procedures for better growth and return
Association of Mutual Funds in India (AMFI) is also formed to provide helping hand with the
core objective to promote awareness of the MF industry, and is very much engaged in
consolidating professional standards and ethics in order to promote best industry practices in
diverse areas such as valuation, disclosure, transparency etc. It has also made mandatory for
all the companies to have credit rating (which indicates the credit worthiness of the borrower)
if they are raising or have raised funds from open market in the form of long term debt,
debentures, bonds, fixed deposits, commercial paper.
Mutual Funds are essentially investment vehicles where people with similar investment
objective come together to pool their money and then invest accordingly. Each unit of any
scheme represents the proportion of pool owned by the unit holder (investor). Appreciation or
reduction in value of investments is reflected in net asset value (NAV) of the concerned
scheme, which is declared by the fund from time to time. Mutual fund schemes are managed
by respective Asset Management Companies (AMC). Different business groups/ financial
institutions/ banks have sponsored these AMCs, either alone or in collaboration with reputed
international firms.
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 5

The main aim of the investor is to minimize the risk involved in investment &
maximize return. Today there are number of options available to investor like Post office
investment, bank deposit, Real estate, debentures, Government securities, stock market,
insurance & gold etc. Among these, Mutual Fund companies are the best investment options
which require less capital & suitable for all especially to the persons who do not have time to
watch the market regularly
TITLE OF THE PROJECT:
A Comparative Performance Evaluation of Birla Sun Life Mutual Fund Schemes With
Its Peer Group Mutual Fund Scheme

OBJECTIVES OF THE STUDY
The specific objectives of the study are as follows

To analyse the trends in returns of selected mutual funds.
To understand the Functions of an Asset Management Company.
To understand the performances of various schemes using various tools to measure
the performances.
To measure and compare the performance of selected mutual fund schemes of
different mutual fund companies and other Asset Management Companies.

Primary objectives
With changing business environment investment avenues also changed to match the pace
according to prevailing circumstances. Mutual Fund Industry has emerged as a dark horse in
financial market and adjusted itself according to its strength. It is growing with balance pace
and will continue to grow in correlation with economic growth and thus invites researches to
explore the market potential, its growth and draw backs. The core objectives to carry out this
study are as
To gain practical insight into application of Sharpes, Treynors & Jensons ratios.
To understand the interdependence of funds & Index (BSE 200),S&P BSE SENSEX,
CRISIL, CCNX MID CAP,BLENDED INDEX. CRISIL AA SHORT TERM.
To evaluate the Performance& rank/rate the funds on the basis of aforesaid ratios.
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 6

Research Methodology for This Study
The study makes a comprehensive evaluation of schemes of 7 BSL MF and its peer
group mutual fund scheme over a period of 5 year (2009-2014) excepted Ultra Short term
mutual fund. The required data has been collected from the www.amfiindia.com,
www.moneycontrol.com, www.valueresearchonline.com, www.nseindia.com,
www.besindia.com and the risk is calculated on the basis of monthly end NAV of each
concerned fund. Further, Index (BSE 200), S&P BSE SENSEX, CRISIL, CCNX MID CAP,
BLENDED INDEX. CRISIL AA SHORT TERM. Has been taken as the benchmark index
and its historical data is used for computation market return. Yield on 10 yr. govt. bond has
been taken as the surrogate for the risk free rate of return viz.8% p.a.
The various constituents of this research are as laid below;
Research design- The research was empirical in nature.
Data collection- Secondary data about NAV collected from
www.amfiindia.comwww.moneycontrol.com , www.valueresearch.com , www.nseindia.com
, www.besindia.com& Economic times also some articles. Birla Sun Life Mutual fund
schemes fact sheets, Key information Memorandum (KIM).

Data type-The data used was secondary in nature
Sampling universe - All Mutual fund schemes of India
Sampling technique - Judgment sampling
Sample size - 7 Birla MF schemes and its peer group of MF
schemes
The risk free rate is assumed to be 8.00% p.a.
Data Analysis & Interpretation
The core of the research started with the collection of raw data w.r.t NAV & historical
data for the BSE 200 index, Crisil Index, CNX Mid Cap, Blended Index etc. For the period of
1
st
April 2009 to 31
st
March 2014.
The funds selected for the purpose of the research are as laid below;
Large Cap : Birla, HDFC, ICICI, UTI and Reliance.
Small and Mid Cap : Birla, Franklin, IDFC, HDFC, ICICI, Sundaram and DSP
BlackRock
ELSS : Birla, SBI Magnum, HDFC Tax, ICICI Prudential, Reliance
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 7

Ultra Short term Debt : Birla, ICICI, HDFC, UTI Treasury and Templeton.
Short Term opportunity : Templeton India, Reliance, ICICI and DSP BlackRock

MIP Hybrid Aggressive : Birla, UTI MIS, Reliance, ICICI and DFC Monthly
Duration Dynamic fund : Birla Duration Income Plus, Reliance, SBI, HDFC, and L&T

Limitations:
The date cannot be representative for long period as the researcher uses the data of 5
years at monthly interval basis.
Findings of the study will be applicable for the conditions, which prevailed during
period for which data have been taken.
Finding cannot be taken for generalization.

















A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 8

INDUSTRY PROFILE
Meaning of Mutual Fund:
Mutual fund is non-depositing, non-banking financial intermediary. Mutual Fund is a
trust which accepts money from savers and uses the same to buy stocks, long term bonds, and
short term debt instruments issued by business or Government unit. The income earned
through these investments and the capital appreciation realized is shared by its unit holders
in proportion to the number of units owned by them. Thus a mutual fund is the most suitable
investment for the common man as it offers an opportunity to invest in a diversified,
professionally managed basket of securities at a relatively low cost. The flow chart below
describes broadly the working of a mutual fund.



A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 9

MUTUAL FUND OPERATION FLOW CHART
Structure of a Mutual Fund
There are many entities involved and the diagram below illustrates the organizational set up
of a mutual fund:

















Unit holders
Trustees
Sponsors
AMC
Mutual fund Transfer agent
Custodian
SEBI
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 10

Unit Holder: Unit holder means a person holding units in a scheme of mutual fund. Unit
means the interest of the unit holder in a scheme, which consists of each unit representing one
undivided shares in assets of a scheme.
Sponsor: A Sponsor establishes the Mutual Fund, along with any individual/body
corporate. The Sponsors liability is restricted to his contribution. Sponsor must contribute a
minimum 40% to the net worth of AMC.
Trustee: An individual or organization which holds or manages and invests assets for the
benefit of another. The trustee is legally obliged to make all trust-related decisions with the
beneficiary's interests in mind, and may be liable for damages in the event of not doing so.
Trustees may be entitled to a payment for their services, if specified in the trust deed.
Asset Management Company: It is a company formed and registered under the
companies Act, 1956(1 of 1956) and approved as such by the board under sub regulation (2)
regulation 21.AMC is a company that is engaged primarily in the business of investing in,
and managing, a portfolio of securities.
Transfer Agent: An agent appointed by the trustee of the mutual fund in consultation
with Asset Management Company or by the companies for the purpose of handling the
records of the unit holders or shareholders.
Custodian: An entity, usually a bank or trust company, which holds and safeguards
securities owned by a mutual fund. Custodian is granted a certificate of registration to carry
on the business of custodian of securities under the Securities and Exchange Board of India
(custodian of securities) regulations 1996.







A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 11

History of the Indian Mutual Fund Industry
The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at
the initiative of the Government of India and Reserve Bank of India. The history of mutual
funds in India can be broadly divided into four distinct phases:
First Phase 1964-87
Unit Trust of India (UTI) was established on 1963 by an act of parliament. It was set up by
Reserve Bank of India and functioned under the Regulatory and administrative control of
Reserve Bank of India. In 1970 UTI was de-linked from the RBI and the Industrial
Development Bank of India (IDBI) took over the Regulatory and administrative control in
place of RBI.
The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had
Rs.6700 crores of assets under management.
Second Phase 1987-1993(Entry of Public Sector Funds)
1987 marked the entry of non-UTI, public sector mutual funds set up by public sector banks
and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India
(GIC). SBI mutual fund was the first non-UTI mutual fund established in June 1987 followed
by Can bank Mutual Fund (December 1987), Punjab National Bank Mutual Fund (August
1989), Indian Bank Mutual Fund(November 1989), Bank of India(June 1990), Bank of
Baroda Mutual Fund(October 1992). LIC established its mutual fund in (June 1989) while
GIC had set up its mutual fund in (December 1990).
At the end of 1993, the mutual fund industry had assets under management of Rs.47, 004
crores.
Third Phase 1993-2003(Entry of Private Sector Funds)
With the entry of private sector funds in 1993, a new era started in the Indian mutual fund
industry, giving the Indian investors a wider choice of fund families. Also, in 1993 was the
year in which the first mutual fund regulations came into being, under which all mutual
funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now
merged with Franklin Templeton) was the first private sector mutual fund registered in July
1993.
The 1993 SEBI (Mutual Fund) regulations were substituted by a more comprehensive and
revised mutual fund regulations in 1996. The industry now functions under the SEBI (Mutual
Fund) Regulations 1996.
The number of mutual fund houses went on increasing, with many foreign mutual funds
setting up funds in India and also the industry has witnessed several mergers and acquisitions.

A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 12

As at the end of January 2003, there were 33 mutual funds with the total assets of Rs.1,
21,807 crores. The Unit Trust of India with Rs.44, 541 crores of assets under management
was way ahead of other mutual funds.
Fourth Phase since February 2003
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was
bifurcated into two separate entities. One is the specified undertaking of Unit Trust of India
with assets under management of Rs.29835 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
formed by Government of India and does not come under the purview of 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
erstwhile UTI which had in March 2000 more than Rs.76000 crores of assets under
management and with the setting up of UTI mutual fund, conforming to the SEBI Mutual
Fund Regulations, and with recent mergers taking place among different private sectors
funds, the mutual fund industry has entered its current phase of consolidation and growth
Types of Mutual Fund Companies
Birla Sun Life Asset Management Company
UTI Asset Management Company
SBI Funds Management
Kotak Mahindra AMC
HDFC AMC
Reliance capital AMC
Tata Asset Management
ICICI Prudential AMC
DSP Black Rock AMC
Edelweiss Mutual Fund
Fidelity Mutual Funds
Franklin Templeton Mutual Funds
IDFC AMC
L&T Investment Management
Quantum Mutual Fund
Religare AMC
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 13


Mutual Fund Characteristics
Potential Depletion of Principal
Mutual funds always involve a certain amount of risk; neither the principal value nor the rate
of return is guaranteed in any way. Both the FINRA (previously known as NASD) and SEC
rules require that clients receive a disclosure that investment in a mutual fund may fluctuate
in value, and that there is a risk of potential depletion of the principal sum invested.
Dividends and Capital Gains Distributions
When opening a mutual fund account, the investor must elect how to receive dividends and
capital gains generated by the fund. The options are:
To receive distributions as cash
To reinvest distributions into the fund
To reinvest distributions into a different fund in the same fund family
Micro SIP/ Chota SIP
Investors should have pan card to invest in mutual fund. Even in case of not having pan card
investors can invest, but only up to total of Rs 50000 in a financial year. S
Timely Payments through ECS
Investors in Mutual Funds need not worry about making timely payments each month
through opting for Electronic Clearing Service payment method. This ensures regular, hassle
free, timely and correct monthly payments by debiting investors bank account and crediting
the account of companies through electronic mode of payment.
Flexibility of Dates
Ease of investing on convenient dates Investor can invest in mutual fund scheme on their
choice of dates. Salaried people who receive money at the end of the month like to invest in
mutual funds.
Investing Through POA (Power of Attorney)
Investing without physical presence. Investments in Mutual Funds can be done through
Assignment of a Power of Attorney for effective financial planning. Army Personnel,
Officers posted on-duty at far off places, owners/directors of limited companies, Non-
Resident Indians, Resident Indian posted onsite/outside India can invest through the
convenience of POA.

A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 14


Top-up Facility for Mutual Funds
An investor can invest more amounts apart from his fixed timely investment. When a person
receives amount apart from his salary at the middle of the year, this amount can be parked in
the existing mutual fund account
Direct Credit of Redemption Payments
When a mutual fund is sold the money is directly credited to investors bank account to
facilitate quick withdrawal of funds. Investor need not go to bank for depositing redemption
Cheque.
Register Multiple Bank Accounts
A mutual fund investor can register up to 5 different bank accounts in his folio. So in case if
he has to close or transfer any one of the accounts the other can be utilized. People who need
to change their work location or move into new city but the old bank does not have Cheque
clearing facility OR old bank does not have Core Banking enabled so cannot accept cheques
drawn on different branch.
Investment alternatives in India
Non marketable financial assets: These are such financial assets which gives moderately
high return but cannot be traded in market.
Bank Deposits
Post office Schemes
Company FDS
PPF
Equity shares: These are shares of company and can be traded in secondary market.
Investors get benefit by change in price of share and dividend given by companies. Equity
shares represent ownership capital. As an equity shareholder, a person has an ownership stake
in the company. This essentially means that the person has a residual interest in income and
wealth of the company. These can be classified into following broad categories as per stock
market:
Blue chip shares
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 15

Growth share
Income Shares
Speculative Share
Bonds: Bonds are the instruments that are considered as a relatively safer investment
avenues.
Government Security Bonds
Government of India Relief Funds
Government agency funds
PSU Bonds
RBI Bonds
Debenture of Private Sector Company
Money market instrument: By convention, the term "money market" refers to the market
for short-term requirement and deployment of funds. Money market instruments are those
instruments, which have a maturity period of less than one year.
Treasury-Bills
Certificate of Deposit
Commercial Paper
Mutual Funds- A mutual fund is a trust that pools together the savings of a number of
investors who share a common financial goal. The fund manager invests this pool of money
in securities, ranging from shares, debentures to money market instruments or in a mixture of
equity and debt, depending upon the objective of the scheme. The different types of schemes
are
Balanced Funds
Index Funds
Sector Fund
Equity Oriented Funds
Life insurance: Now-a-days life insurance is also being considered as an investment avenue.
Insurance premiums represent the sacrifice and the assured sum the benefit. Under it different
schemes are:
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 16

Endowment assurance policy
Money back policy
Whole life policy
Term assurance policy
Real estate: One of the most important assets in portfolio of investors is a residential house.
In addition to a residential house, the more affluent investors are likely to be interested in the
following types of real estate:
Agricultural land
Semi urban land
Farm House
Precious objects: Investors can also invest in the objects which have value. These comprises
of:
Gold Silver
Precious stones
Art objects
Financial Derivatives: These are such instruments which derive their value from some other
underlying assets. It may be viewed as a side bet on the asset. The most important financial
derivatives from the point of view of investors are:
Options
Futures





A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 17

Company Profile
Birla Sun Life Asset Management Company Ltd. (BSLAMC), the investment
manager of Birla Sun Life Mutual Fund, is a joint venture between the Adyta Birla Group
and the Sun Life Financial Inc. of Canada. The joint venture brings together the Adyta Birla
Group's experience in the Indian market and Sun Life's global experience.
Established in 1994, Birla Sun Life Mutual fund has emerged as one of India's leading
flagships of Mutual Funds business managing assets of a large investor base. Our solutions
offer a range of investment options, including diversified and sector specific equity
schemes, fund of fund schemes, hybrid and monthly income funds, a wide range of debt and
treasury products and offshore funds.
Birla Sun Life Asset Management Company has one of the largest team of research
analysts in the industry, dedicated to tracking down the best companies to invest in.
BSLAMC strives to provide transparent, ethical and research-based investments and wealth
management services.

Sun Life Financial:
Sun life financial Inc is a leading international financial services organization providing a
diverse range of wealth accumulation and protection products and services to individuals and
corporate customers. Chartered in 1865, sun life financial INC and its partners today have
operations in key markets worldwide, including Canada, the United States, the United
Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda.
Brief History
When Mathew Hamilton Gaul received a charter for The Sun Insurance Company of
Montreal in 1865, few could have forcing that the fledging company could grow to become a
leading international financial services organization.
Today we are a home-grown success story. Through our operations, subsidiaries and joint
ventures, we are proud to serve millions of people in Canada, the United States, the United
Kingdom, Hong Kong, the Philippines, China, Indonesia, India, Japan and Bermuda.


A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 18

VISION AND MISSION
Vision
To be a premium global conglomerate, with a clear focus on each of the businesses.
Mission
To deliver superior value to our customers, shareholders, employees and society at large.
Values
Integrity: Acting and taking decisions in a manner that is fair and honest. Following
the highest standards of professionalism and being recognized for doing so. Integrity
for us means not only financial and intellectual integrity, but encompasses all other
forms as are generally understood.
Commitment: On the foundation of Integrity, doing all that is needed to deliver value
to all stakeholders. In the process, being accountable for our own actions and
decisions, those of our team and those in the part of the organization for which we are
responsible.
Passion: An energetic, intuitive zeal that arises from emotional engagement with the
organization that makes work joyful and inspires each one to give his or her best. A
voluntary, spontaneous and relentless pursuit of goals and objectives with the highest
level of energy and enthusiasm.
Seamlessness: Thinking and working together across functional groups, hierarchies,
businesses and geographies. Leveraging diverse competencies and perspectives to
garner the benefits of synergy while promoting organizational unity through sharing
and collaborative efforts.
Speed: Responding to internal and external customers with a sense of urgency.
Continuously striving to finish before deadlines and choosing the best rhythm to
optimize organizational efficiencies.




A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 19

Functions of Birla sun Life Mutual Fund
Professional Management:

Mutual funds are backed by experienced and skilled professionals, a dedicated
investment research team that analyses the performance and prospects of companies
and selects investments.

Diversification:

Mutual funds always have an investment mix. The diversity in this mix
spreads out the probability of profit and losses, reducing the risk of a substantial fall
in the money you have invested.

Return Potential:

Over a medium to long term, mutual funds have the potential to provide a
higher net return as they invest in a diversified basket of selected securities.

Economies:

Mutual funds are relatively less expensive way to invest compared to directly
investing in the capital markets because the benefits of scale, Investment brokerage,
custodian and other fees translate into lower costs for investors.

Liquidity:

In open ended schemes, the investor gets the money back promptly at
net NAV pegged prices. In close ended schemes, the units can be sold on a stock
exchange at the prevailing market price. The fund also repurchases from the investors
at NAV pegged prices

Flexibility:
Through features such as regular investment plans, regular withdrawal
plans and dividend investment plans, you can systematically invest or
withdraw funds according to your needs and convenience.



A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 20

Objectives of Birla Sun Life Mutual Fund
To define and maintain high professional and ethical standards in all areas of
operations of mutual fund industry.
To recommend and promote best business practices and code of conduct to be
followed by members and others engaged in activities of mutual fund and asset
management including agencies connected or involved in the field of capital markets
and financial services.
To interact with Securities and Exchange Board of India (SEBI) and to represent to
SEBI on all matters concerning the mutual fund industry.
To represent to the Government, Reserve Bank of India and other bodies on all
matters relating to Mutual Fund Industry.
To develop cadre of well-trained Agent distributors and to implement a programme of
training and certification for all intermediaries and other engaged in the industry.
To undertake nationwide investor awareness programs so as to promote proper
understanding of the concept and working of mutual funds.
To disseminate information on Mutual Fund Industry and to undertake studies and
research directly and/or in association with other bodies.
Mutual Fund Solutions
1. Savings Solutions:
Our Savings Solutions are aimed at preserving your money, providing you with liquidity and
giving you superior tax efficient returns compared to bank accounts and Fixed Deposits.
Who can benefit from Savings Solution?
This is an ideal solution for investors who have low-medium propensity for risk and high
liquidity. These can be ideal for first time investors in mutual funds.
Benefits of Savings Solutions:
Make inflation work in your favour
Aim to preserve your money

Aim to provide liquidity
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 21

Tax efficient returns

2. Regular Income Solutions:
Our Regular Income Solutions aim to preserve your money and provide regular income.
Who can benefit from Regular Income Solutions?
This is an ideal solution for investors who are interested in alternative modes of regular
income, either in present of after retirement stage, and have low propensity for risk.
Benefits of Regular Income Solutions:
Aim to preserve your money and provide regular income
Aim to figure out inflation
Tax efficient returns
1. Wealth Creation Solutions:
Our wealth creation solutions aim to grow your money through equity/gold investments and
are available in a range of conservative to aggressive options.
Who can benefit from Wealth Creation Solutions?
Equity may be considered as an ideal option to give attractive long term returns and hence
may be used for funding long term needs (ex, childs education, buying a home etc.).
Benefits of Wealth Creation Solutions:
1. Tax Free Returns
2. Risk is Lower

2. Tax Savings Solutions:
Birla Sun Life Tax Savings Solutions help to reduce your tax burden and at the same time,
aim to grow your money through equity investments.


A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 22

Who can benefit from Tax Savings Solutions?
Tax Saving is important, especially when investors can save up to Rs.30900 in taxes! Section
80C of the Income Tax, 1961 provides options to save tax by reducing the taxable income by
up to Rs.1lakh.
Benefits of Tax Savings Solutions:
Low lock-in period
Potential to earn dividends
Earn market linked returns
Tax-free returns
Team of Hubli Branch
The Branch was started in the year October 2008 with the two employees under the
leadership of Mr.Prakash.C.Yalavatti
Branch Head:Mr.Prakash.C.Yalavatti
Operations and Customer Service Head: Msr.Preeta. Saldanha
Relationship Manager-Retail Sales: Mr.Chetan Bewoor












A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 23

Various Funds and Schemes Offered By Birla Sun Life Mutual Fund:
SL
.
N
O
SCHEME INVESTMENT
OBJECTIVE
ENTRY
LOAD
(%)
EXIT
LOAD
(%)
LEVEL
OF
RISK
1 Birla Sun Life
Cash Plus
An open-ended liquid scheme
with the objective to provide
reasonable returns at a high
level of safety and liquidity
through judicious investments
in high quality debt and money
market instruments.
Nil Nil Low risk
2 Birla Sun Life
Cash
Manager
An open-ended income scheme
with the objective to provide
income which is consistent
with a portfolio to investments
in a basket of debt and money
market instruments of very
short maturities with view to
provide reasonable returns.


Nil Nil Low risk
3 Birla Sun Life
Savings Fund
The primary objective of the
scheme
is to generate regular income
through
Investments in debt and money
market instruments. Income
may be generated through
receipt of coupon payments or
the purchases and sale of
securities in the underlying
portfolio.
Nil Nil Low risk
4 Birla Sun Life
Ultra Short-
Term Fund
An open-ended short term
income scheme with the
objective to generate income
and capital appreciation by
investing 100% of the corpus
in diversified portfolio of debt
and money market securities
with relatively low level of
interest rate risk.
Nil For
redemptio
n/switch
out of
units
within 15
days from
the date of
allotment:
0.25% of
applicable
NAV.
Low-
medium
Risk
5 Birla Sun Life
Dynamic
Bond Fund
An open-ended income scheme
with the objective to generate
optimal returns with high
liquidity through active
Nil For
redemptio
n/switch
out of
Low-
medium
Risk
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 24

management of the portfolio by
investing in a high quality debt
and money market instruments.
units
within 180
days from
the date of
allotment:
0.50% of
applicable
NAV.
6 Birla Sun Life
Medium-
Term Plan
The primary investment
objective of the scheme is to
generate regular income
through investments in debt
and money market instruments
in order to make regular
dividend payments to unit
holders and secondary
objective is growth of capital.
Nil For
redemptio
n/switch
out of
units
within
180days
from the
date of
allotment:
2.50% of
applicable
NAV,
after 180
days but
before 365
days from
the date of
allotment.
Low-
medium
Risk
7 Birla Sun Life
Floating Rate
Fund
The primary objective of the
scheme is to generate regular
income through investment in
portfolio comprising
substantially of floating rate
debt or money market
instruments


Nil Nil Low-
medium
Risk
8 Birla Sun Life
Income Plus
An open-ended income scheme
to generate constant income
through superior yields on its
investments at moderate levels
of risk through diversified
investment approach.
Nil 1% if
redeemed/
switched
out within
365 days
from the
date of
allotment.
Medium
risk
9 Birla Sun Life
Short-Term
Fund
An open-ended income scheme
with the objective to generate
income and capital
appreciation by investing
100% of the corpus in a
diversified portfolio of debt
Nil For
redemptio
n or
switch of
units
within 20
Medium
risk
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 25

and money market securities.

days from
the date of
allotment:
0.50% of
applicable
NAV.
10 Birla Sun Life
Gilt Plus
An open-ended government
securities schemes with the
objective to generate income
and capital appreciation
through investments
exclusively in government
securities.
Nil Nil Medium
risk
11 Birla Sun Life
Govt
Securities
Funds
An open-ended gilt scheme
with the objective to provide
investors current income
constant with a portfolio
invested 100% in securities
issued by the Government of
India or the State Government.
Nil

1% if
redeemed/
switched
out within
365 days
from the
date of
allotment.
Medium
risk
12 Birla Sun Life
Enhanced
Arbitrage
Fund
An open-ended equity scheme
with an investment objective to
generate income by investing
predominantly in equity and
equity related instruments.
Nil For
redemptio
n/switch
out of
units
before 90
days from
the date of
allotment:
0.75%.
Low-
medium
Risk
13 Birla Sun Life
Short-Term
Opportunities
Fund
An open-ended income scheme
with the objective to generate
regular income by investing
primarily in investment grade
fixed income securities or
money market instruments
with short to medium term
maturities and across the credit
spectrum within the universe of
investment grade rating.


Nil For
redemptio
n/switch
out of
units
within 180
days from
the date of
allotment:
0.50% of
applicable
NAV
Low-
medium
Risk
14 Birla Sun Life
Monthly
Income
An open-ended income scheme
with primary investment
objective to generate regular
income so as to make monthly
and quarterly distributions to
shareholders.
Nil 1.00% if
redeemed/
switched
out within
365 days
from the
date of
Medium
risk
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 26

allotment.
15 Birla Sun Life
MIP
The primary objective of the
scheme is to generate regular
income so as to make monthly
distributions to the unit
holders. Secondary objective
being growth capital.
Nil 1.00% if
redeemed/
switched
out within
365 days
from the
date of
allotment.
Medium
risk
16 Birla Sun Life
MIP II-
Wealth 25
Plan
An open-ended income scheme
with the objective to generate
regular income so as to make
monthly payment or
distribution to the unit holders.
Nil 1% if
redeemed/
switch out
within 365
days from
the date of
allotment.
Medium
risk
17 Birla Sun Life
MIP II-
Savings 5
Plan
An open-ended income scheme
with the objective to generate
regular income so as to make
monthly payment or
distribution to unit holders.
Nil 1% if
redeemed/
switch out
within 365
days from
the date of
allotment.
Medium
risk
18 Birla Sun Life
Tax Relief 96
An open-ended equity linked
savings scheme(ELSS) with
the objective of long-term
growth of capital through a
portfolio with a target
allocation of 80% equity, 20%
debt and money market
securities
Nil Nil High risk
19 Birla Sun Life
Tax Plan
An open-ended equity linked
savings scheme with the
objective to achieve long-term
growth of capital along with
income tax relief for
investment.


Nil Nil High risk
20 Birla Sun Life
Equity Fund
An open-ended growth scheme
with the objective of long-term
growth of capital through a
portfolio with a target
allocation of 90% equity and
10% debt and money market
instruments.


Nil 1% if
redeemed/
switch out
within 365
days from
the date of
allotment.
High risk
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 27

21 Birla Sun Life
Advantage
Fund
An open-ended growth scheme
with the objective to achieve
long-term growth of capital at
relatively moderate levels of
risk through diversified
research based investment
approach.
Nil 0.50% if
redeemed/
switched
out within
7 days
from the
date of
allotment.
High risk
22 Birla Sun Life
Midcap Fund
An open-ended growth scheme
with the objective to achieve
long-term growth of capital at
controlled level of risk by
investing primarily in Mid-
cap stocks.
Nil 1% if
redeemed/
switch out
within 365
days from
the date of
allotment.
High risk
23 Birla Sun Life
Frontline
Equity Fund
An open-ended scheme with
the objective of long-term
growth of capital, through a
portfolio with a target
allocation of 100% equity by
aiming at being as diversified
across various industries and or
sectors as its chosen
benchmark index, BSE 200.
Nil 1% if
redeemed/
switch out
within 365
days from
the date of
allotment.
High risk
24 Birla Sun Life
Infrastructure
fund
An open-ended growth scheme
with the objective to providing
for medium to long-term
capital appreciation by
investing predominantly in a
diversified portfolio of equity
and equity related securities of
companies that are
participating in the growth and
development of infrastructure
in India.
Nil 1% if
redeemed/
switch out
within 365
days from
the date of
allotment.
High risk
25 Birla Sun Life
India
GenNext
Fund
An open-ended growth scheme
with the objective to target
growth of capital by investing
in equity and equity related
securities of companies that are
expected to benefit from the
rising consumption patterns in
India, which in turn is getting
fuelled by high disposable
income of young generation.
Nil 1% if
redeemed/
switch out
within 365
days from
the date of
allotment
High risk
26 Birla Sun Life
New
Millennium
Fund
A multi sector open-ended
growth scheme with the
objective of long-term growth
of capital, through a portfolio
with a target allocation of
Nil 1% if
redeemed/
switch out
within 365
days from
High risk
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 28

100% equity, focusing on
investing in technology and
technology dependent
companies, and other
technology enabled companies.
the date of
allotment.
27 Birla Sun Life
Top 100 Fund
An open-ended growth scheme
with the objective to provide
medium to long-term capital
appreciation, by investing
predominantly in a diversified
portfolio of equity and equity
related securities of top 100
companies as measured by
market capitalization.
Nil 0.50% if
redeemed/
switched
out within
7 days
from the
date of
allotment.
High risk
28 Birla Sun Life
Buy India
Fund
A multi sector open-ended
growth scheme with the
objective of long-term growth
of capital, through a portfolio
with a target allocation of
100% equity, focusing on
investing in businesses that are
drawn by Indias large
population and inherent
consumption patterns.
Nil 0.50% if
redeemed/
switched
out within
7 days
from the
date of
allotment.
High risk
29 Birla Sun Life
MNC Funds
An open-ended growth scheme
with the objective to achieve
long-term growth of capital at
relatively moderate levels of
risk by making investments in
securities of multi-national
companies through a research
based investment approach.
Nil 1% if
redeemed/
switch out
within 365
days from
the date of
allotment
High risk
30 Birla Sun Life
Index Fund
An open-ended index linked
growth scheme with the
objective to generate returns
commensurate with the
performance of Nifty subject to
tracking errors.

Nil 0.50% if
redeemed/
switched
out within
7 days
from the
date of
allotment.
High risk
31 Birla Sun Life
India
Opportunities
Fund
An open-ended growth scheme
with the objective to achieve
superior long-term growth of
capital by investing in shares
of companies.
Nil 0.50% if
redeemed/
switched
out within
7 days
from the
date of
allotment.
High risk
32 Birla Sun Life
Small and
An open-ended small and
midcap equity scheme with an
Nil 1% if
redeemed/
High risk
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 29

Midcap Fund objective to generate constant
long-term capital appreciation
by investing predominantly in
equity and equity related
securities of companies
considered to be small and
midcap.
switch out
within 365
days from
the date of
allotment
33 Birla Sun Life
India
Reforms
Fund
An open-ended equity scheme
with an investment objective is
to generate growth and capital
appreciation by building a
portfolio of companies that are
expected to benefit from the
economic reforms.
Nil 1% if
redeemed/
switch out
within 365
days from
the date of
allotment
High risk
34 Birla Sun Life
Dividend
Yield Plus
An open-ended growth scheme
with the objective to provide
capital growth and income by
investing primarily in a well
diversified portfolio of
dividend paying companies
that have relatively high
dividend yield.
Nil 1% if
redeemed/
switch out
within 365
days from
the date of
allotment
High risk
35 Birla Sun Life
95 Fund
An open-ended balanced
scheme with the objective to
generate long-term growth of
capital and current income,
through a portfolio with a
target allocation of 60% equity
and 40% debt and money
market securities.
Nil 1% if
redeemed/
switch out
within 365
days from
the date of
allotment
High risk
36 Birla Sun Life
Asset
Allocation
Fund
An open-ended fund of funds
scheme with the objective to
provide income and capital
appreciation along with
diversification by investing in a
basket of debt and equity
mutual fund schemes in line
with the risk profile of the
investors.

Nil Nil Medium-
high
Risk
37 Birla Sun Life
Special
Situations
Fund
An open-ended diversified
equity scheme with an
objective of the scheme is to
generate long-term growth of
capital by investing in a
portfolio of equity and equity
related securities.
Nil 1% if
redeemed/
switch out
within 365
days from
the date of
allotment
High risk
38 Birla Sun Life
Commodity
Equities Fund
An open-ended growth scheme
with the objective to offer
long-term growth of capital.
Nil 3% if
redeemed
/switched
High risk
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 30

out within
30 days
from the
date of
allotment
39 Birla Sun Life
International
Equity
Fund(Plan A)
An open-ended diversified
equity scheme with an
objective to generate long-term
growth of capital, by investing
predominantly in a diversified
portfolio of equity and equity
related securities in the
international markets.
Nil Nil High risk
40 Birla Sun Life
International
Equity
Fund(Plan B)
An open-ended diversified
equity scheme with an
objective to generate long-term
growth of capital, by investing
predominantly in diversified
portfolio of equity and equity
related securities in domestic
and international markets.
Nil 1% if
redeemed/
switched
out within
365 days
from the
date of
allotment
High risk
41 Birla Sun Life
Pure Value
Fund
An open-ended diversified
equity scheme with an
objective to generate consistent
long-term capital appreciation
by investing predominantly in
equity and equity related
securities by following value
investing strategy.
Nil 1% if
redeemed/
switched
out within
365 days
from the
date of
allotment
High risk
42 Birla Sun Life
Long-Term
Advantage
Fund
An open-ended diversified
equity scheme with an
objective to provide long-term
capital appreciation by
investing predominantly in
diversified portfolio of equity
and equity related securities.
Nil 1% if
redeemed/
switched
out within
365 days
from the
date of
allotment
High risk





A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 31

Mutual Fund Taxation
1
.
Income Tax Rates
For Individual, Hindu Undivided Family, Association of Persons,
Body of Individuals and Artificial juridical persons.

Total Income Tax Rates (%)
Up to Rs.2,00,000 (a)(b) NIL
Rs. 2,00,001 to Rs. 5,00,000 (c)(d) 10%
Rs. 5,00,001 to Rs.10,00,000(c) 20%
Rs. 10,00,000 and above(c) (e) 30%




1. Applicable Income Tax Rates - Investments in Mutual Fund Schemes.
Tax Implication on Dividend received by Unit holders.
Resident
Individual/HUF
Domestic
Corporate

NRI
Dividend
Equity Oriented Schemes Tax Free Tax Free Tax Free
Other than Equity Oriented
Schemes
Tax Free Tax Free Tax Free

Resident
Individual/HUF
Domestic
Corporate
NRI
Dividend Distribution Tax (Payable by the Scheme)
Equity Oriented Schemes* NIL NIL NIL
Other than Equity Oriented
Schemes (Applicable Up
to 31st May, 2013)
12.5% + 10%
Surcharge + 3%
Cess
= 14.1625%
30% + 10%
Surcharge + 3%
Cess
= 33.99%
12.5% + 10%
Surcharge + 3% Cess
= 14.1625%
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 32

Other than Equity Oriented
Schemes (Applicable from
1st June, 2013)
25%+
10%Surcharge +
3%Cess
= 28.325%
30% + 10%
Surcharge
+ 3% Cess
= 33.99%
25%+ 10%Surcharge
+
3%Cess
= 28.325%
Money Market & Liquid
Schemes
25% + 10%
Surcharge + 3%
Cess
= 28.325%
30% + 10%
Surcharge + 3%
Cess
= 33.99%
25% + 10%
Surcharge + 3% Cess
= 28.325%

Capital
Gains
Taxation
Resident
Individual/HUF
Domestic Corporate NRI**
Long Term Capital Gains (Units held for more than 12 months)
Equity
oriented
schemes *
Nil Nil Nil
Other than
Equity
Oriented
Schemes
(listed)
10% without
indexation or 20% with
indexation whichever
is lower + 10%
Surcharge $ + 3%
Cess
10% without
indexation or 20% with
indexation whichever
is lower + Surcharge
as applicable $$ +
3% Cess
10% without indexation
or 20% with indexation
whichever is lower +
10% Surcharge $ + 3%
Cess ***
Without
indexation
= 11.33% = 10.815% or 11.33% = 11.33%
With
indexation
= 22.66% = 21.63% or 22.66% = 22.66%
Schemes
other than
Equity
oriented
schemes
(unlisted)
10% without
indexation or 20% with
indexation whichever
is lower + 10%
Surcharge $+ 3% Cess
10% without
indexation or 20% with
indexation whichever
is lower + Surcharge
as applicable $$ + 3%
Cess.
10% without indexation
^^ + 10% Surcharge $ +
3% Cess
Without
indexation
= 11.33% = 10.815% or 11.33% = 11.33%
With
indexation
= 22.66% = 21.63% or 22.66% = Not Applicable


Short Term Capital Gains (Units held for 12 months or less)
Equity oriented
schemes *
15%+ 10%
Surcharge $ + 3%
Cess
15% + Surcharge as
applicable $$ + 3% Cess
15% + 10%
Surcharge $ + 3%
Cess
= 16.995% = 16.223% or 16.995% = 16.995%
Other than equity
oriented schemes
30%^ + 10%
Surcharge $ + 3%
30% + Surcharge as
applicable $$ + 3% Cess
30%^+ 10%
Surcharge $ + 3%
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 33

Cess Cess
= 33.99% = 32.445% or 33.99% = 33.99%



Tax deducted at source pertaining to NRI Investors#
Short term capital
gains $
Long term capital
gains $
Equity oriented schemes * 16.995% ## NIL
Other than Equity Oriented schemes (Listed) 33.99% 22.66%@
Other than Equity Oriented schemes (Unlisted)


STT will be deducted on equity oriented schemes at the time of redemption and
switch to the other schemes. Mutual Fund would also pay securities transaction tax
wherever applicable on the securities sold.
In the case of a resident individual of the age of sixty years or above but below
eighty years, the basic exemption limit is Rs.2, 50, 000.
In the case of a resident individual of the age of eighty years or above, the
basic exemption limit is Rs.5,00,000/-
Education cess is applicable @ 3 percent of income-tax. No Surcharge is
applicable.
The Finance Act 2013 provides a rebate of Rs.2, 000 for individual having
Total Income up to Rs. 5 lakhs.
As per the Finance Act, 2013, surcharge at the rate of 10% is applicable on
income exceeding Rs. 1 crore; Marginal relief for such person is available.
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 34

Surcharge at the rate of 10% shall be levied in case of individual / HUF unit holders
where their income exceeds Rs 1 crore.
Surcharge at the rate of 5% shall be levied for domestic corporate unit holders where
the income exceeds Rs 1 crore but less than 10 crores and at the rate of 10%, where
income exceeds 10 crores.
The tax rates are subject to DTAA benefits available to NRI's. As per the Finance Act
2013, submission of tax residency certificate ("TRC") will be necessary for granting
Double Taxation Avoidance Agreement ("DTAA") benefits to non-residents. A
taxpayer claiming DTAA benefit shall furnish a TRC of his residence obtained by
him from the Government of that country or specified territory. Further, in addition to
the TRC, the non-resident shall also provide such other documents and information
subsequently, as may be prescribed by the Indian Tax Authorities.
These are the tax rates applicable to capital gains, in case the rate of tax is lower than
20% and if the NRI does not have a Permanent Account Number, then for the purpose
of TDS, the withholding tax rate would be 20%
As per the Finance Act 2012, with effect from July 1, 2012, a list of transactions is
proposed to be specified, wherein the rate for tax deduction at source needs to be
determined by the assessing officer.
In case the transaction of sale of mutual fund units by an NRI gets covered within
such list, then an application would be required to be made to the assessing officer to
determine the tax deduction at source rate
Subject to NRI's having Permanent Account Number in India
In case of transfer of unlisted securities by non-resident, the tax rates in case of long
term capital gains shall be 10% (plus surcharge and cess) without indexation
Assuming the investor falls into the highest tax bracket after providing for indexation








A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 35

Theoretical Study
Important Terms Used In Mutual Funds
Net Asset Value (NAV):-It is the market value of the assets of scheme minus its
liabilities. The per unit of NAV is the net asset value of the scheme divided by the
number of units outstanding on the valuation date.
Sale Price: - It is the price you pay when you invest in a scheme. Also called offer
price. It may include a sales load.
Repurchase Price: - It is the price at which units under open-ended schemes are
repurchased by the mutual fund. Such prices are NAV related.
Redemption Price: -It is the prices at which close-ended schemes redeem their
units on maturity such prices are NAV related.
Sales Load: - It is a charge collected by a scheme when it sells the units. Also called
front-end load. Schemes that do not charge a load are called NO LOAD schemes.
Repurchase or Back-End Load: - It is a charge collected by a scheme when it
buys back the units from the unit holders.
Operation of Mutual Fund: - A mutual fund company collects money from many
investors, and invest it in various options like shares, debentures, bonds, etc. This fund
is managed by professionals who understand market well, and try to achieve growth by
making strategic investments. Investors get units of the mutual fund according to the
amount they have invested.
Index Funds: - Index Funds are Mutual Funds that invest in shares of companies
comprising a particular index. These Funds intends to replicate the performance of a
particular index.



A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 36

Rupee Cash Averaging: - Rupee cash averaging is one method to save regularly
and minimize the effects of market volatilities on investments. By investing through
methods like SIP, you invest a fixed amount in mutual funds at regular intervals. So you
get the more units when the NAV is low and fever units when it is high. Eventually your
average cash per units is brought down.
Net Asset Value (NAV):- It is the market price of the units of the mutual funds.
The sales and purchase of the mutual funds are NAV related. It is calculated as follows-
NAV = Assets of the Fund Liabilities of the Fund
Number outstanding units for that Fund
Gilt Funds: - It is a kind of mutual fund that invest your money only in Government
securities. These funds are considered to be safe as they bear no default risk.
Sartorial Mutual Funds: -The main objective of these funds is to provide high
returns from one particular sector that has potential to grow. Investing money in one
particular sector.
Liquid Funds: - These are the funds that offer high liquidity. This means the units of
these funds can be sold immediately and the invested amount can be redeemed quickly.
Capital Protection Funds: - These are the mutual funds designed to protect
capital. These funds put a major portion of the investment in bonds; and a small portion
in shares over a time and the portion invested in bonds grows to the size of original
investment. So even if the portion invested in shares does not do well to your capital is
still protected.
New Fund Offer (NFO):- When a new fund is launched for investors it is known as
NFO. A NFO could also be the launch of additional units of close-ended funds.
Fund of Funds: - A fund of funds is a kind of mutual fund that invest in variety of
mutual funds.
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 37

Equity Mutual Funds: - Equity mutual funds collect money from several investors,
and invest this amount in shares of various companies. The primary objective of equity
mutual funds is to invest in shares of different companies and generate good returns.
Debt Mutual Funds: - Debt mutual funds collect money from several investors and
invest this amount in bonds of reputed companies and Government bonds
Hybrid Mutual Funds: - These funds invest in both shares and bonds. The portion
invested in shares helps to grow wealth, while the portion invested in bonds offers
stability to your portfolio.
Systematic Investment Plan (SIP):- It is a convenient method of investing in
mutual funds. Under this plan an investor contributes a fixed amount towards mutual
fund scheme at regular intervals, and gets units at prevailing Net Asset Value.
What is a Debt?
Debt means borrowing. It is the amount of money borrowed and owed by one party to
another.
The debt market in India comprises basically three segments, viz.
1. Government Securities Market
2. PSU Bonds Market
3. Corporate Securities Market
Government Securities Market is the most important
A. The principal segment of our debt market
B. It has a role in setting benchmarks in the financial markets as a whole.
C. Critical in bringing about an effective and reliable transmission channel for the
use of indirect instruments of monetary control






A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 38

Debt Market Instruments
1. Money Markets
Inter-bank call money / repo transactions within banks and also banks with RBI
Treasury Bills issued by GOI at a discount to the face value. In India T- Bills are
issued for a maturity period of 91 days 182 days and 364 days.
Commercial Paper & MIBOR linked debentures issued by Corporate.
Certificate of Deposits by Banks.

2. Government Bond Markets
Dated instruments forming part of the borrowing program approved by Parliament
each year (Union Budget).
They have a maturity ranging from 1 year to 30 years.
3. Corporate Bond Markets
Corporate Debentures/ Bonds
PSU Bonds / FI Bonds
4. Other Securities
State government / state guaranteed bonds
Bond Fund or Debt Fund
A bond fund or debt fund is a fund that invests in bonds, or other debt securities. Bond funds
can be contrasted with stock funds and money funds. Bond funds typically pay
periodic dividends that include interest payments on the fund's underlying securities plus
periodic realized capital appreciation. Bond funds typically pay higher dividends than CD
sand money market accounts. Most bond funds pay out dividends more frequently than
individual bonds.
Bond Fundamentals
Debt Instruments - Yields
Yield: Is the return on the debt instrument

A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 39

YTM: The annualized return an investor would get by holding a fixed income instrument
until maturity. Assumes that the instrument is held to maturity & all the interim cash flows
are reinvested at YTM
Money market yield: For instruments maturing within a year and not having an interim
cash flow; CPs/CDs/T Bills
Relationship between price and yield
When price goes up, the yield comes down. And when price comes down yield increases. So,
the bond's prices and its yield are inversely related.

Yield Curve
This is generally an upward sloping curve wherein investors expect higher yields for fixed
income instruments with long-term maturities that occur further into the future.


Yi
el
d
Maturity
Yield
Pr
ic
e
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 40

Duration: It is the present value weighted, time to maturity of the portfolio. Duration is a
measure of the interest rate sensitivity of a bond.
Higher the duration of a bond, higher is its price sensitivity
The duration of a bond will be lower than its tenor
The duration of a bond will change with a change in the tenor of the bond
Higher the yield, lower the duration

To maximize returns fund managers constantly adjust the duration of the bond portfolio
If our outlook on interest rates is bullish (we expect interest rates to fall) duration is
extended i.e. buy long bonds
If the outlook is bearish (we expect the interest rates to rise) the duration is reduced i.e. sell
long bonds and buy short bonds or come into cash.
Credit Spreads: It refers to the difference in yield between any two securities. Normally
the base security is a benchmark government security and is compared to any other
government security or an AAA rated security.
Type of Risks
Interest Rate Risk: If the investor does not hold bond till maturity, an increase in
future interest rates could lead to a capital loss when the bond is sold in the secondary
market.
Reinvestment Risk: The assumption of the intermediate cash flows being
reinvested at the yield-to-maturity exposes the investor to the risk that the future
reinvestment rates would be less than the yield-to-maturity.
Call & Prepayment Risk: The bond may have a call option for the issuer.
Creates uncertainty of cash flows. Yield to call instead of yield to maturity may be
relevant yield.
Yield Curve Risk: Yield curve is the relationship between yield and term to
maturity. Yield curve risk arises for a portfolio of bonds. In a portfolio, many bonds
with different maturities exit. Yield curve shift may not be parallel and hence each
bonds price will change differently. This is yield curve risk.

A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 41

METHODOLOGICAL APPROACHES IN MEASURING MUTUAL
FUND PERFORMANCE
A. TREYNORS PERFORMANCE MODEL
Treynor (1965) emphasised that in a perfect capital market no securities would be
incorrectly priced. In such conditions all well diversified portfolios will move with market
and portfolio yields high return when market provides high returns vice-versa. The very
prominent existence of business risk and financial risk had not been addressed in the
research. His measure cannot capture the portion of variability caused by lack of
diversification hence this would not be appropriate to measure the past performance.
= (Rp RF)/ ij
RP = Return on the fund being evaluated in period, RF = Return on the risk less asset
ij = Sensitivity to benchmark [Reward-to-Volatility]
B. SHARPES PERFORMANCE MODEL
Sharpe (1966) had shown that performance can be evaluated with a simple yet
theoretically meaningful measure that considers both average return and risk. He enumerated
that the differences could be detailed by expenses ratio, lending support to the view that the
capital market is highly efficient and that good managers concentrate on evaluating risk and
providing diversification, spending little effort (and money) on the search for incorrectly
priced securities. Sharpes measure evaluates the performance of the portfolio manager not
only on the basis of the returns but also on the extent and degree of diversification of the
portfolio attained. If the portfolio is fully diversified, implying that it does not contain any
non-systematic risk.
= (Rp RF)/ ij

RP = Return on the fund being evaluated in period Rf = Return on the risk less asset
ij = Total Risk [Reward-to-Variability]
C. JENSENS PERFORMANCE MODEL
Past studies indicate that the sensitivity of fund performance to the benchmark used to
proxy the market return. Assume that using a large capitalisation Index as benchmark say
BSE 200 results in a positive bias for a sample of small capitalisation funds. Elton (1993)
enumerated that the positive performance reported in Ippolito (1989) resulted from an
incorrect benchmark rather than from superior security selection of fund managers and this is
commonly known as Benchmark error. In order to avoid benchmark error Jensens modified
alpha can be used to understand excess return generated by the fund.
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 42


Step I
a) Calculation of the mean & standard deviation of the returns of the funds & index (on
Monthly basis);
Returns=(NAVt-NAVt-1)*100

NAVt-1
The mean monthly return for the year viz.60 months is calculated as below;
Mean return=Ri/n
n=60 Months & Ri Monthly returns
b) Calculation of standard deviation of each fund & index;
()= ( (Dx) 2/n)
Dx=(Ri - R.avg.)& it means deviation of the return from its mean
I nterpretation- denotes the degree to which the individual return is scattered away of
The mean returns
Step-I I
a) Beta() is calculated as below;
() = [Cov. (Ri, Rm)/ Var. (Rm)]
Cov. (Ri , Rm)= (Di*Dm)/n
& Rm = Mean Market Return
I nterpretation- Beta denotes the sensitivity of the fund w.r.t market fluctuation.

DATA ANALYSI S AND I NTERPRETATI ON-I I
This part of the data analysis comprises of the next 4 steps as laid below;
Step I I I
Calculation of the Sharpe Measurement;
Sp =(Rp - Rf)/
Sp- Sharpes index
Rp- Return of the portfolio
Rf- Risk-free rate of return
- Standard deviation of returns
Step I V
Calculation of Treynors reward to-variability measure:
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 43


Tp=(Rp - Rf)/p
Rp- Return of the portfolio
Rf- Risk-free rate of return
p- Beta of portfolio
Tp- Treynors index

Step V
Calculation of Jensons Index:
ERp =Rf +p (ERm - Rf)
Rf- Risk-free rate of return
ERp- Expected portfolio return
p- Beta of portfolio
ERm- Expected market return













A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 44

Table No. 1: LARGE CAP Fund Schemes
BIRLA HDFC ICICI UTI Reliance
BSE 200
S&P

19.53 15.14 19.47 19.12 13.74 32.36
27.30 26.16 19.16 25.15 23.43 -0.32
-1.17 -1.07 0.74 -0.93 -0.68 8.07
9.06 9.48 10.09 9.01 8.23 1.09
-0.29 1.58 -0.75 -1.54 -1.52 8.52
8.99 7.88 9.57 10.94 7.30 -6.30
-6.24 -3.28 -6.74 -7.79 -8.60 7.27
11.69 9.02 10.76 12.32 9.26 3.55
2.86 3.10 1.85 3.61 2.23 -5.28
-4.73 -4.10 -3.35 -6.15 -4.43 0.32
1.22 -0.96 2.34 1.66 0.02 6.17
4.86 5.53 5.23 3.57 1.86 1.39
0.56 1.31 -0.21 0.95 -0.38 -3.50
-4.62 -1.82 -3.37 -4.73 -4.67 4.45
5.05 7.02 5.73 4.79 5.64 1.49
4.30 3.01 5.56 3.54 1.81 0.93
1.69 5.11 1.50 5.09 0.22 9.88
9.21 6.64 9.99 8.29 4.11 0.45
0.35 1.28 1.86 0.42 0.62 -3.56
-1.98 -2.07 -2.69 -0.94 -5.56 3.36
1.71 -0.08 2.12 1.51 1.41 -10.41
-10.53 -9.40 -9.61 -10.38 -10.52 -3.72
0.32 -0.79 1.27 0.46 -1.49 8.82
5.19 7.00 5.91 5.46 4.86 -0.63
-1.25 0.09 -0.95 0.26 -1.07 -2.62
-1.26 -0.37 -1.92 -0.58 -2.42 0.56
0.73 -0.26 1.89 0.62 0.60 -2.51
-1.35 -1.20 -0.36 1.13 -2.10 -8.66
-8.02 -8.19 -8.54 -4.71 -9.57 -1.59
-3.36 -2.91 -2.17 -2.83 -3.78 6.28
6.14 4.45 7.53 5.63 5.18 -9.40
-5.36 -6.48 -4.69 -3.49 -6.03 -5.23
-6.16 -6.36 -5.12 -3.92 -7.49 13.35
11.46 14.74 10.65 9.04 18.08 4.43
2.15 3.31 3.00 3.31 3.69 -1.51
0.49 -0.03 -0.79 1.48 -2.35 -0.98
-0.96 -2.89 -1.47 -2.36 -0.75 -6.26
-6.67 -6.25 -6.58 -5.82 -8.21 6.74
8.84 7.93 8.17 7.35 10.11 -1.11
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 45

0.63 -1.66 -0.55 -0.46 -0.18 0.45
0.28 -2.15 0.68 0.28 0.77 8.64
9.69 10.72 8.16 8.62 12.19 -1.36
-0.57 -2.13 -0.85 -0.16 -1.68 4.98
5.56 3.02 4.75 4.28 5.33 1.46
2.75 2.43 1.31 0.65 1.46 1.52
0.92 2.14 1.02 -1.21 0.86 -6.22
-5.35 -7.31 -4.16 -4.62 -6.31 -0.87
-0.61 -0.63 -1.50 -0.99 -2.64 4.42
5.48 4.61 4.75 5.09 6.48 0.85
-1.39 -2.73 -0.54 0.20 -1.37 -3.54
-0.69 -2.25 -1.68 -1.60 -0.98 -2.28
-4.20 -6.27 -1.49 -0.87 -4.86 -4.53
-1.14 -2.07 -0.84 -3.56 -0.77 5.26
4.66 4.53 4.24 4.20 4.75 9.14
9.28 10.71 9.11 8.18 9.61 -1.07
-0.44 -1.59 -0.70 -1.77 0.96 2.71
2.49 1.95 1.65 2.67 3.38 -4.15
-5.28 -6.42 -4.63 -4.26 -3.46 2.86
3.86 2.90 3.87 3.72 3.39 7.48

Table No. 2: Summary of Calculation for Large Cap Fund Schemes

BIRLA HDFC ICICI UTI Reliance
BSE 200
S&P
Mean 1.79 1.51 1.83 1.81 1.15 1.38
SD 6.44 6.31 5.80 5.98 6.35 6.51
Variance 41.49 39.81 33.61 35.79 40.31 42.36
Covariance 6.44 5.66 6.30 5.77 3.14
Beta 0.16 0.14 0.19 0.16 0.08
Sharpe's index 0.17 0.12 0.19 0.18 0.06
Treynor's index 6.71 5.34 5.73 6.59 5.10
Rank as per Sharpe III IV I II V
Rank as per
Treynor's
I IV II III V

Erp 0.85 0.84 0.87 0.85 0.80
Jenson's Decision
Under-
priced
Under-
priced
Under-
priced
Under-
priced
Under-
priced

Risk free return 0.75 0.75 0.75 0.75 0.75

The above table shows expected returns (Erp)of Birla, HDFC, ICICI, UTI and
Reliance are 0.85, 0.84, 0.87, 0.85 and 0.80 respectively on monthly basis whereas these
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 46

mutual funds are generating 1.79, 1.51, 1.83, 1.81, and 1.51 per cent return ; hence these all
are good under priced.
Graph No.1: Large Cap Funds Schemes

Interpretation:
Monthly return of all the schemes on the above graph and the return of BSE 200 S&P
clearly indicate that Majority of the funds are showing a movement along with the movement
in BSE 200 S&P. The value of Beta is also indicates the same. The Beta value of Birla,
HDFC, ICICI, UTI and Reliance is 0.16, 0.14, 0.19, 0.16, and 0.08 respectively, indicates that
returns are likely to move along with the market, but Birla is not movement with Index
performance.




-15.00
-10.00
-5.00
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
0 10 20 30 40 50 60 70
R
e
t
u
r
n

(
%
)

Large cap
BIRLA HDFC ICICI
UTI Reliance BSE 200 S&P
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 47

Table No. 3: Equity Linked Saving Schemes
Birla Sun
Life
SBI
Magnum
HDFC Tax
I CI CI
Prudential
Reliance
Tax
S&P BSE
SENSEX
17.72 18.12 19.46 17.10 16.25 28.26
27.19 26.90 24.59 27.67 24.62 -0.90
-5.23 -1.34 1.94 -0.03 0.70 8.12
8.71 8.09 10.53 11.19 9.12 -0.02
0.45 -1.14 1.15 3.68 -1.60 9.32
7.71 9.47 10.67 8.55 7.76 -7.18
-8.97 -7.27 -4.91 -4.13 -6.50 6.48
12.03 12.23 10.80 11.72 11.61 3.18
4.36 3.38 2.49 5.94 6.23 -6.34
-5.10 -5.07 -1.61 -2.28 -2.50 0.44
-0.08 0.85 0.97 2.16 0.02 6.68
5.55 5.39 5.79 4.72 5.58 0.18
0.23 -1.38 0.11 1.34 2.33 -3.50
-5.86 -4.03 -1.55 -3.70 -3.99 4.46
5.16 5.58 5.59 5.06 6.25 0.95
3.89 2.87 4.13 4.40 4.72 0.58
2.77 0.99 3.80 1.07 4.88 11.67
7.73 8.56 8.61 9.16 8.89 -0.18
0.47 0.11 0.48 0.35 -0.57 -2.55
-2.70 -2.42 -2.32 -2.79 -4.22 5.06
1.87 1.16 -0.06 2.79 -0.15 -10.64
-10.81 -11.93 -9.88 -10.64 -11.85 -2.75
1.52 -0.85 -0.43 0.25 0.35 9.10
4.95 7.07 3.97 3.98 6.68 -1.59
-0.93 -1.75 0.27 1.29 0.91 -3.31
-1.44 -1.91 -0.07 -1.35 -1.96 1.85
0.95 1.17 1.13 0.38 0.51 -3.44
0.36 -1.00 -1.04 -0.18 0.96 -8.36
-5.64 -7.39 -8.23 -8.80 -9.08 -1.34
-4.98 -2.12 -4.20 -3.55 -0.91 7.60
3.87 4.68 4.48 6.93 2.35 -8.93
-5.82 -5.24 -4.82 -6.70 -7.95 -4.15
-7.17 -6.22 -5.61 -7.09 -6.36 11.25
11.99 11.44 10.82 14.47 16.72 3.25
3.01 3.96 4.63 3.27 5.69 -1.96
1.08 2.44 0.17 0.02 3.26 -0.49
-1.07 -1.67 -2.05 -1.86 0.22 -6.35
-7.08 -6.17 -6.96 -5.07 -7.28 7.47
7.87 7.78 6.60 7.38 5.90 -1.11
0.31 0.78 -1.64 0.26 0.37 1.12
1.07 0.83 -0.32 -0.04 -0.91 7.65
9.24 7.94 8.67 8.79 11.78 -1.37
-0.83 -1.44 -0.95 0.30 -1.16 4.51
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 48

5.03 4.38 3.57 3.71 3.55 0.45
3.06 1.67 3.74 2.83 2.95 2.41
-1.87 -1.33 -0.40 -0.08 -2.70 -5.19
-5.66 -5.30 -6.46 -5.97 -7.08 -0.14
-0.63 -0.48 -1.36 -2.13 -3.76 3.55
4.63 4.79 2.76 3.35 7.23 1.31
-0.13 -0.31 -0.93 -1.55 -0.82 -1.84
-1.34 -1.69 -2.97 -1.79 -2.81 -0.26
-4.29 -3.62 -4.94 -4.50 -10.65 -3.75
-1.49 -3.44 -1.77 3.42 -1.06 4.08
4.12 5.66 5.20 3.60 5.46 9.21
8.88 9.05 12.39 10.16 10.08 -1.76
1.91 0.27 0.91 2.49 4.00 1.82
4.00 3.44 3.11 3.34 7.44 -3.10
-5.65 -3.41 -5.62 -4.64 -7.12 2.96
4.21 4.94 3.85 2.31 4.40 5.99

Table No. 4: Summary of Calculation for ELS schemes

Birla Sun
Life
SBI
Magnum
HDFC Tax
I CI CI
Prudential
Reliance
Tax
S & P
BSE
SENSEX
Mean return 1.58 1.63 1.80 2.04 1.81 1.33
SD 6.41 6.34 7.39 8.51 10.76 6.50
Variance 41.06 40.18 54.66 72.39 115.77 42.25
Co-variance -3.27 2.73 4.78 3.98 5.57

Beta -0.08 0.07 0.09 0.06 0.05

Sharpe's index 0.13 0.14 0.14 0.15 0.10

Treynor's index -10.41 12.94 12.02 23.49 22.01

Rank as per sharpe IV III II I V

Rank as per treynor V III IV I II

Erp 0.64 0.79 0.80 0.78 0.78

Jenson's decision
Under-
priced
Under-
priced
Under-
priced
Under-
priced
Under-
priced

Risk free 0.75 0.75 0.75 0.75 0.75

The above table shows expected returns (Erp) of Birla, SBI, HDFC, ICICI, and
Reliance are 0.64, 0.79, 0.80, 0.78 and 0.78 respectively on monthly basis whereas these
mutual funds are generating 1.58, 1.63, 1.80, 2.04, and 1.81 per cent return ; hence these all
are good under priced. Also it compares with market / index return all funds have been beat
its bench mark.

A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 49

Graph No.2: Equity Linked Saving Schemes

Interpretation:
Monthly return of all the schemes on the above graph and the return of BSE 200 S&P
clearly indicate that Majority of the funds are showing a movement along with the movement
in BSE 200 S&P. The value of Beta is also indicates the same. The Beta value of Birla, SBI
HDFC, ICICI, and Reliance is - 0.08, 0.07, 0.09, 0.06, and 0.05 respectively, indicates that
returns are likely to move along with the market, but Birla is more volatile movement with
Index performance. Also Reliance have high risk, the investor have to invest in ICICI and
Reliance.






-15.00
-10.00
-5.00
0.00
5.00
10.00
15.00
20.00
25.00
30.00
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58
Birla Sunlife
SBI Magnum
HDFC Tax
ICICI Prudential
Reliance Tax
ELSS
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 50

Table No. 5: Duration Dynamic Fund Schemes
BSL
Dynamic
Bond Fund
RP (G)
Reliance
Dynamic
Bond Fund
(G)
SBI Dynamic
Bond Fund
(G)
HDFC
I ncome
Fund (G)
L&T Triple
Ace Bond
Fund (G)
BSE 200
S&P

1.437 -0.245 0.057 3.423 1.557 32.361
0.048 -0.076 0.057 -1.253 0.278 -0.323
1.019 0.814 0.095 1.879 1.727 8.066
0.596 -0.042 0.123 -0.609 0.388 1.090
0.222 -0.067 0.085 -0.885 -0.189 8.521
0.773 -0.051 0.113 0.898 0.565 -6.304
0.533 -0.084 0.122 0.359 0.902 7.266
0.643 0.084 0.301 1.177 1.454 3.550
0.296 0.177 0.713 0.193 0.637 -5.276
0.565 0.160 0.456 0.437 0.505 0.315
0.340 0.143 0.306 -0.754 -0.578 6.168
1.048 1.442 1.784 1.344 0.490 1.394
0.618 0.149 0.145 0.735 0.400 -3.496
0.282 0.231 0.190 0.850 0.047 4.454
0.517 1.210 0.398 0.357 0.229 1.493
-0.038 -0.024 0.974 -0.338 -0.488 0.931
0.496 0.578 0.598 0.646 0.834 9.883
0.645 0.550 0.488 0.933 0.298 0.450
0.176 0.048 0.318 -0.225 0.720 -3.556
0.257 0.362 0.379 0.371 0.606 3.363
0.563 0.897 1.132 0.954 0.444 -10.406
0.261 -0.238 0.243 -0.250 -0.154 -3.716
0.465 0.621 0.614 0.814 0.708 8.822
1.223 1.179 1.032 1.268 0.909 -0.631
0.531 0.477 0.741 -0.368 -0.004 -2.624
0.261 0.366 0.820 -0.229 0.405 0.565
1.392 0.892 1.048 1.225 0.796 -2.513
0.895 0.822 0.912 0.601 0.625 -8.660
0.917 1.296 1.069 1.069 0.985 -1.592
0.346 -0.150 0.252 -0.372 0.412 6.277
0.654 -0.595 0.763 -0.924 0.257 -9.397
0.818 1.637 1.723 1.617 0.666 -5.230
1.238 2.551 2.366 2.462 1.006 13.348
1.046 2.087 0.982 1.653 1.000 4.432
0.563 0.235 0.360 0.180 0.239 -1.508
0.644 0.078 0.755 -1.076 0.050 -0.976
0.979 0.973 0.712 1.153 1.122 -6.258
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 51

0.738 1.097 0.940 1.614 0.920 6.740
0.776 0.856 0.708 0.684 1.162 -1.105
1.004 0.883 0.799 0.787 0.846 0.454
0.849 0.855 0.792 0.737 0.832 8.640
1.230 1.525 1.500 1.416 1.218 -1.362
0.563 0.394 0.416 0.477 0.358 4.980
0.706 0.665 0.657 0.687 0.593 1.459
0.945 1.698 1.937 1.515 1.546 1.515
0.767 1.157 1.149 1.031 0.887 -6.222
0.429 0.462 0.606 0.445 0.343 -0.867
1.037 0.339 0.930 0.406 0.361 4.415
1.666 2.638 1.965 2.317 2.217 0.847
1.802 2.725 2.858 2.631 2.571 -3.544
-0.078 -1.136 -1.034 -1.342 -0.832 -2.276
-2.599 -3.338 -2.658 -4.076 -2.691 -4.534
-0.205 -0.696 -1.026 -1.406 -0.263 5.257
1.182 0.650 -0.434 -0.159 -0.162 9.140
1.400 1.563 1.171 1.762 1.140 -1.069
0.576 -0.006 -0.410 0.115 -0.271 2.708
0.524 -0.037 0.101 0.108 0.148 -4.154
0.801 0.960 0.567 0.821 0.706 2.856
0.263 0.043 0.141 -0.221 -0.031 7.480
0.638 0.539 0.592 0.503 0.533 1.384
Table No.6: Summary of Calculation for all schemes

BSL
Dynamic
Bond
Fund RP
(G)
Reliance
Dynamic
Bond
Fund (G)
SBI
Dynamic
Bond Fund
(G)
HDFC
Income
Fund (G)
L&T
Triple
Ace Bond
Fund (G)
BSE
200
S&P
Mean 0.638 0.539 0.610 0.503 0.533 1.384
SD 0.590 0.924 0.807 1.151 0.749 6.508
Var 0.348 0.853 0.651 1.326 0.561 42.358
Co-Var 0.592 0.129 -0.519 2.071 0.717

Beta== 1.699 0.151 -0.797 1.563 1.277

Sp=(Rp-T)/SD -0.190 -0.229 -0.174 -0.215 -0.290

Tp=(Rp-T)/ -0.066 -1.402 0.176 -0.158 -0.170

Rank as per Sp II IV I III V

Rank as per Tp II IV I III V
Erp=T+*(Erm-
T) 1.827 0.846 0.245 1.740 1.559
Jenson's
Decision
Over-
priced
Over-
priced
Under-
priced
Over-
priced
Over-
priced
Risk free
return 0.750 0.750 0.750 0.750 0.750

A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 52


The above table shows expected returns (Erp) of Birla, Reliance, SBI, HDFC, and
L&T are 1.83, 0.85, 0.24, 1.74 and 1.56 respectively on monthly basis whereas these mutual
funds are generating 0.64, 0.54, 0.61, 0.50, and 0.53 per cent return ; hence these all are over
priced. Index return is more than mutual funds returns, so the investor have to think more on
invest in these funds except SBI. The SBI is performing very good compare with other funds;
the investor has got more return.
Graph No.3: Duration Dynamic Fund Schemes

Interpretation:
Monthly return of all the schemes on the above graph and the return of BSE 200 S&P
clearly indicate that Majority of the funds are showing a movement along with the movement
in BSE 200 S&P. The value of Beta is also indicates the same. The Beta value of Birla,
HDFC, ICICI, UTI and Reliance is 1.699, 0.151, -0.797, 1.563, and 1.277respectively,
indicates that returns are likely to move along with the market, but Birla is doing good
movement with Index performance.


1 3 5 7 9 1113151719212325272931333537394143454749515355575961
-20.000
-15.000
-10.000
-5.000
0.000
5.000
10.000
15.000
R
e
t
u
r
n

o
f

f
u
n
d
/
s
c
h
e
m
e

(
%
)

Duration dynamic fund
L&T Triple
Ace Bond
Fund (G)
HDFC
Income
Fund (G)
SBI Dynamic
Bond Fund
(G)
Reliance
Dynamic
Bond Fund
(G)
BSL Dynamic
Bond Fund
RP (G)
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 53

Table No.7: DURATION INCOME PLUS Schemes
B L S Income
Plus
Templeton (I)
Short Term
Income - Inst.
Plan (G)
ICICI
Prudential Short
Term Plan (G)
UTI Short
Term Income
Fund
BSE 200
S&P

-1.16 0.69 -0.19 0.08 32.36
1.93 1.77 1.08 1.07 -0.32
-1.01 1.20 0.05 0.18 8.07
-0.44 0.38 -0.16 0.12 1.09
1.21 0.90 0.85 0.54 8.52
0.61 0.64 0.53 0.79 -6.30
0.85 1.22 0.85 1.29 7.27
-0.18 0.51 0.19 0.26 3.55
0.21 0.62 0.38 0.33 -5.28
-0.19 0.16 0.00 0.43 0.32
0.65 1.05 0.91 0.53 6.17
1.06 0.82 0.78 0.44 1.39
0.07 0.23 0.22 0.46 -3.50
0.19 0.77 0.51 0.49 4.45
-0.31 -0.06 -0.14 0.12 1.49
0.04 0.46 0.32 0.74 0.93
0.54 0.61 0.49 0.67 9.88
-0.08 0.24 0.21 0.51 0.45
0.22 0.36 0.27 0.40 -3.56
0.76 0.40 0.31 0.57 3.36
0.54 0.34 0.26 0.55 -10.41
0.68 0.49 0.44 0.40 -3.72
1.21 1.12 1.14 0.87 8.82
0.21 0.72 0.58 1.50 -0.63
-0.12 0.55 0.36 0.31 -2.62
1.27 1.14 0.99 1.36 0.56
1.05 0.71 0.86 1.04 -2.51
0.83 0.81 0.86 1.01 -8.66
-0.19 0.74 0.62 0.60 -1.59
-0.48 0.71 0.64 0.60 6.28
1.35 0.74 0.79 0.98 -9.40
2.08 0.80 0.89 1.13 -5.23
1.40 0.71 0.74 0.99 13.35
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 54

0.18 0.49 0.59 0.54 4.43
0.67 0.92 0.58 0.85 -1.51
0.75 0.97 0.87 0.88 -0.98
1.18 0.69 0.55 0.75 -6.26
0.35 0.94 0.83 1.07 6.74
0.69 0.87 0.94 0.95 -1.11
0.73 0.90 0.84 1.03 0.45
1.60 1.18 1.11 1.19 8.64
0.32 0.67 0.69 0.65 -1.36
0.60 0.75 0.61 0.81 4.98
1.91 0.79 0.83 1.07 1.46
1.45 0.78 0.82 1.02 1.52
0.46 0.44 0.41 0.61 -6.22
0.61 1.28 1.07 1.07 -0.87
2.87 1.54 1.43 1.40 4.42
3.02 1.09 1.13 1.03 0.85
-1.32 0.35 -0.01 -0.02 -3.54
-3.76 -1.47 -1.78 -1.21 -2.28
-1.87 0.09 -0.28 0.53 -4.53
-0.26 1.81 1.66 1.82 5.26
1.65 1.53 1.61 1.23 9.14
-0.73 0.74 0.30 0.49 -1.07
0.07 0.74 0.57 0.54 2.71
0.95 0.73 0.67 0.65 -4.15
-0.42 0.59 0.29 0.54 2.86
0.46 0.72 0.57 0.70 1.28

Table No.8 : Summary of Calculation for Duration Income Plus schemes

B L S
Income
Plus
Templeton
(I) Short
Term
Income -
Inst. Plan
(G)
ICICI
Prudential
Short Term
Plan (G)
UTI Short
Term
Income
Fund
BSE 200
S&P
Mean 0.46 0.71 0.57 0.71 1.28
SD 1.07 0.47 0.52 0.45 6.51
Variance 1.14 0.22 0.27 0.20 42.43
Covariance -0.22 0.81 0.31 0.06

Beta -0.19 3.65 1.17 0.30

Sharpe's index -0.27 -0.09 -0.34 -0.09

Rank as per sharpe III II IV I

A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 55

Treynor's index 1.54 -0.01 -0.15 -0.14
Rank as per
Treynors I II IV III

Erp 0.65 2.68 1.37 0.91

Jenson's Decision Over-priced Over-priced Over-priced Over-priced

Risk free return 0.75 0.75 0.75 0.75

The above table shows expected returns (Erp) of Birla, Templeton, ICICI, and UTI
are 0.65, 2.68, 1.37, and 0.91 respectively on monthly basis whereas these mutual funds are
generating 0.46, 0.71, 0.57, and 0.71 per cent return hence these all are good over priced.
Graph No.4: Duration Income Plus Schemes

Interpretation:
Monthly return of all the schemes on the above graph and the return of BSE 200 S&P
clearly indicate that Majority of the funds are showing a movement along with the movement
in BSE 200 S&P. The value of Beta is also indicates the same. The Beta value of Birla,
Templeton, ICICI, and UTI is -0.19, 3.65, 1.17, and 0.30 respectively, indicates that returns
are likely to move along with the market, but Birla is not movement with Index performance
and it is not good for investment.

-10.00
-8.00
-6.00
-4.00
-2.00
0.00
2.00
4.00
6.00
8.00
10.00
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58
A
x
i
s

T
i
t
l
e

DURATION INCOME PLUS
UTI Short
Term Income
Fund
ICICI
Prudential
Short Term
Plan (G)
Templeton (I)
Short Term
Income - Inst.
Plan (G)
B L S Income
Plus
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 56

Table No.9: MIP Hybrid-Aggressive Fund Schemes
BIRLA UTI RELIANCE ICICI DFC CRISIL

6.66 4.99 6.61 7.45 7.54 -0.10
4.00 6.02 1.54 4.87 6.92 16.04
1.63 0.92 2.18 1.45 2.83 15.89
2.54 2.19 2.75 2.35 2.39 -6.45
-0.24 -0.64 0.58 -0.83 0.09 8.21
1.99 3.01 2.88 2.83 3.22 2.41
-0.97 -1.69 0.55 -1.77 -0.35 3.24
3.12 3.12 2.80 3.08 3.08 2.65
0.74 1.20 0.92 -0.11 0.58 10.92
-0.85 -0.03 -0.17 -0.39 -0.16 0.45
0.44 -0.27 -0.10 0.43 0.19 5.51
2.20 1.17 1.79 2.46 2.30 5.67
0.18 0.81 0.93 0.33 0.93 -3.00
-1.08 -0.81 -0.27 -0.57 -0.23 8.92
1.65 1.57 1.48 1.45 1.68 -2.26
1.15 0.70 0.92 0.92 1.21 -2.46
1.20 0.84 1.15 0.45 1.51 9.18
1.84 2.21 2.36 2.74 2.24 1.61
0.30 0.85 0.05 0.07 0.52 -6.11
-0.22 -0.58 -0.22 0.17 -0.05 3.54
0.76 0.39 0.60 0.71 0.26 -2.01
-2.64 -2.34 -2.43 -2.60 -2.19 -1.05
-0.16 0.27 0.37 0.48 0.31 8.40
2.77 2.89 2.09 2.31 2.60 3.91
-0.26 -0.13 0.42 -0.34 -0.13 3.75
0.15 0.05 -0.16 0.21 0.02 2.08
1.59 1.30 0.70 1.33 1.36 19.18
0.40 0.55 0.46 0.70 0.15 -3.86
-0.55 -1.52 -0.98 -1.69 -1.31 -89.42
-0.77 -0.82 -0.25 -0.52 -0.72 4.88
1.43 1.32 0.56 2.08 1.27 0.58
-1.13 -1.20 -0.95 -0.65 -1.08 -0.24
-1.50 -0.84 0.26 -1.69 -0.88 2.02
3.98 3.56 4.85 4.98 3.91 3.03
1.12 1.21 1.14 1.24 1.50 5.58
1.22 0.73 0.63 0.07 0.96 5.85
-0.04 0.30 0.95 0.88 0.07 2.15
-1.49 -1.33 -0.58 -0.91 -1.12 0.96
2.13 2.54 1.44 2.25 2.35 -16.18
0.04 0.62 0.56 0.33 0.34 2.26
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 57

0.84 0.83 0.64 0.65 -0.25 4.41
3.89 2.93 2.82 3.06 3.87 -1.09
-0.30 0.40 0.30 0.05 -0.03 1.08
3.19 1.57 1.50 2.12 1.08 12.77
1.65 0.80 1.42 1.93 2.27 -7.12
0.01 0.40 0.21 0.00 0.46 -3.95
-2.11 -0.99 -1.10 -1.27 -1.46 -8.47
0.39 0.79 0.33 0.61 0.55 1.03
1.61 2.05 2.69 2.05 1.63 5.38
1.86 1.04 1.80 1.32 1.47 17.87
-0.80 -0.85 -1.47 -1.05 -1.55 6.59
-1.99 -2.55 -3.67 -3.13 -4.47 -5.96
-0.95 -1.22 -0.87 -0.89 -1.61 5.91
2.39 2.33 1.08 2.17 1.77 -4.99
3.62 3.45 3.14 3.66 4.38 -5.33
0.97 0.60 0.32 0.68 0.93 13.32
1.21 1.33 0.95 1.21 1.30 -7.95
-0.71 -0.84 -0.14 -1.55 -1.11 1.57
0.96 1.44 0.59 1.17 1.14 9.55
0.83 0.79 0.83 0.84 0.92 1.02

Table No.9: Summary of Calculation for MIP Hybrid-Aggressive Fund

BI RLA UTI RELI ANCE I CI CI DFC CRI SI L
Mean 0.83 0.79 0.83 0.84 0.92 1.02
SD 3.42 3.20 2.94 3.91 4.50 184.99
Variance 11.67 10.26 8.62 15.27 20.22

Covariance 3.82 4.83 4.13 5.12 5.60

Beta 0.33 0.47 0.48 0.34 0.28

Sharpe's index 0.02 0.01 0.03 0.02 0.04

Treynor's index 0.25 0.09 0.17 0.26 0.63
Rank as per
Sharpe III V II IV I
Rank as per
Treynor's III V IV II I

Erp 0.84 0.88 0.88 0.84 0.83

J enson's Decision
Over-
priced
Over-
priced Over-priced
Over-
priced
Under-
priced

Risk free return 0.75 0.75 0.75 0.75 0.75

The above table shows expected returns (Erp) of Birla, UTI, HDFC, Reliance, ICICI,
and DFC are 0.84, 0.88, 0.88, 0.84 and 0.83 respectively on monthly basis whereas these
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 58

mutual funds are generating 0.83, 0.79, 0.83, 0.84, and 0.92 per cent return ; hence these all
are good priced. These all funds are performing well with constant movement each one fund
when market is more volatile, and also these fund generating more approximate return.
Graph No.5: MIP Hybrid Aggressive Fund Schemes

Interpretation:
Monthly return of all the schemes on the above graph and the return of BSE 200 S&P
clearly indicate that Majority of the funds are showing a movement along with the movement
in BSE 200 S&P. The value of Beta is also indicates the same. The Beta value of Birla, UTI,
HDFC, Reliance, ICICI, and DFC is 0.33, 0.47, 0.48, 0.34, and 0.28 respectively, indicates
that returns are likely to move along approximately with each mutual funds, but DFC fund is
first preference to do investments of investors.




0 10 20 30 40 50 60 70
-100.00
-80.00
-60.00
-40.00
-20.00
0.00
20.00
40.00
-6.00
-4.00
-2.00
0.00
2.00
4.00
6.00
8.00
10.00
0 10 20 30 40 50 60 70
A
x
i
s

T
i
t
l
e

MIP Hydrid Aggressive
BIRLA UTI RELIANCE ICICI DFC CRISIL
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 59

Table No.9: SMALL AND MAD CAP Fund Schemes
BSLMF Franklin I DFC HDFC I CI CI SUNDARAM
DSP
BlackRock
CNX
MI DCAP

14.861 19.825 16.903 17.563 23.846 21.950 15.414 20.072
31.791 38.887 26.347 25.978 28.858 49.126 39.196 20.414
-1.250 -2.525 1.973 1.912 1.854 -4.981 -1.068 0.559
8.280 11.682 10.559 10.944 15.690 11.009 9.767 7.134
1.808 1.723 2.318 2.365 7.017 3.452 5.530 7.728
9.075 6.123 6.089 8.771 7.880 8.186 8.818 7.463
-4.937 -3.937 -4.790 -3.571 -4.661 -6.658 -5.032 2.731
11.266 13.035 11.488 10.434 10.177 14.270 12.774 3.966
4.103 4.700 6.234 5.586 5.994 6.068 7.905 3.604
-3.500 -2.437 0.498 -0.619 0.783 -3.929 -1.957 -4.641
1.455 -1.154 -0.674 0.817 0.583 -0.618 0.756 4.828
5.750 7.518 3.929 6.219 4.757 3.428 4.462 4.936
3.944 1.852 5.368 2.886 3.458 2.083 4.886 -1.972
-0.788 -5.982 -5.282 -2.173 -3.097 -4.481 -3.369 -1.573
5.495 6.207 7.218 6.965 4.415 6.784 6.187 8.572
4.667 5.186 9.244 3.838 4.823 5.267 4.919 4.809
1.565 4.110 4.441 3.223 2.080 5.182 6.264 4.459
6.135 6.819 4.515 7.718 6.915 6.379 5.231 3.441
1.735 1.176 -0.051 2.151 -0.173 3.400 3.254 -0.578
-4.318 -3.498 -1.290 -1.053 -1.832 -5.473 -5.693 -6.580
-0.916 -2.030 0.117 -1.293 1.532 1.100 1.447 -4.804
-12.152 -11.936
-
13.849
-
11.446 -9.228 -13.517 -13.707 -8.564
-0.825 -0.171 -0.010 -2.373 -1.236 -3.560 -2.669 1.157
5.335 6.729 5.176 6.800 4.489 7.367 7.863 7.562
1.640 -0.355 1.990 2.712 1.817 1.896 1.420 -4.552
-1.103 0.489 0.040 2.280 0.325 0.832 -0.813 0.324
1.206 -0.216 1.077 1.740 -1.658 1.912 0.973 2.260
0.871 -0.460 1.868 1.549 0.637 2.426 2.644 -7.831
-6.340 -7.306 -2.330 -6.115
-
10.092 -6.793 -7.399 -2.325
-1.882 -3.952 -2.334 -3.425 -4.817 -5.254 -3.286 -3.517
3.306 3.548 3.575 3.131 5.944 3.024 3.594 -2.439
-8.071 -7.173 -7.770 -5.766 -3.943 -5.910 -8.673 -7.080
-8.093 -8.128 -6.223 -8.154 -7.436 -8.152 -9.951 3.556
11.158 12.259 11.327 13.910 15.560 12.518 14.801 14.425
5.358 6.310 3.091 5.842 4.890 4.162 6.189 0.961
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 60

1.639 2.807 1.840 2.448 1.652 1.526 1.435 -0.595
-2.837 -0.922 0.551 0.036 1.399 -2.732 -0.262 -7.715
-5.441 -5.644 -4.300 -7.495 -5.375 -6.110 -6.917 0.381
7.121 5.779 4.665 6.578 5.338 6.160 3.637 4.412
-0.738 2.460 -0.924 1.609 1.587 2.435 0.653 -1.703
-0.365 2.193 1.647 -0.394 -0.160 3.285 0.794 2.582
8.606 11.032 8.899 8.882 8.708 9.480 10.789 6.370
-0.530 -1.263 -1.338 -1.891 -1.255 -1.005 0.856 0.054
4.718 6.116 8.843 3.815 4.243 3.764 6.005 6.317
3.057 3.695 3.741 3.269 4.070 1.540 2.734 2.083
-0.727 0.134 -3.968 -1.372 -1.275 -3.972 -4.470 -6.374
-5.185 -6.479 -4.792 -5.685 -5.096 -6.064 -9.435 -5.160
-1.861 -0.757 -1.493 -0.675 -0.662 0.104 -0.708 -0.452
1.198 0.945 3.192 2.487 2.407 1.896 2.562 5.424
0.667 4.220 1.501 1.219 -1.681 0.663 -1.686 -5.864
-1.562 -2.753 -2.619 -3.363 -4.486 -1.583 -4.176 -2.399
-7.804 -5.375 -5.726 -5.956 -5.717 -7.873 -7.600 -9.036
-1.740 -3.444 -2.430 -2.528 1.695 -1.930 -3.176 3.935
6.553 7.495 4.465 5.319 6.103 7.498 8.554 5.698
7.012 10.378 8.365 10.637 9.593 6.321 11.844 3.453
3.588 4.681 3.750 4.081 2.417 3.449 4.713 3.036
6.708 4.704 4.452 5.941 5.496 6.989 6.962 -0.415
-5.117 -4.163 -2.830 -2.970 -5.928 -6.362 -7.344 -2.331
4.069 5.412 4.605 5.935 5.368 3.543 5.212 7.574










A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 61


Table No.12: Summary of Calculation for SMALL AND MAD CAP Fund
Schemes

BSLM
F
Frankl
in
IDF
C
HDF
C
ICIC
I
SUNDARA
M
DSP
BlackRo
ck
CNX
MIDC
AP
Mean 1.825 2.342 2.218 2.361 2.451 2.263 2.231 1.488
SD 6.572 7.617 6.181 6.301 6.918 8.738 7.963 6.157
Variance 43.188 58.016
38.20
0
39.70
7
47.86
2 76.348 63.416 37.913
Covarian
ce 29.764 34.699
26.61
8
27.16
4
30.14
1 40.124 35.311

Beta 0.689 0.598 0.697 0.684 0.630 0.526 0.557
Sharpe's
index 0.164 0.209 0.238 0.256 0.246 0.173 0.186
Rank as
per
sharpe VII IV III I II VI V
Treynor's
index 1.559 2.662 2.107 2.354 2.701 2.879 2.661
Rank as
per
Treynors
VII III VI V II I IV

Erp 1.258 1.191 1.264 1.255 1.215 1.138 1.161
Jenson's
Decision Under Under
Unde
r
Unde
r
Unde
r Under Under

risk free 0.750 0.750 0.750 0.750 0.750 0.750 0.750

The above table shows expected returns (Erp) of Birla, Franklin, IDFC, HDFC,
ICICI, Sundaram and DSP are 1.26, 1.19,1.26, 1.25, 1.21, 1.14, and 1.16 respectively on
monthly basis whereas these mutual funds are generating 1.82, 2.34, 2.23,,2.36, 2.45, 2.26,
and 2.23 per cent return ; hence these all are good under priced. Especially Sundarm has
generating more return so investor first preference to invest in it.





A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 62

Graph No.6: Summary of Calculation for SMALL AND MAD CAP Fund
Schemes


Interpretation:
Monthly return of all the schemes on the above graph and the return of BSE 200 S&P
clearly indicate that Majority of the funds are showing a movement along with the movement
in BSE 200 S&P. The value of Beta is also indicates the same. The Beta value of Birla,
Franklin, IDFC, HDFC, ICICI, Sundaram and DSP is 0.69, 0.59, 0.69, 0.68, 0.63,0.53
and0.56 respectively, indicates that returns are likely to move along with the market, but
Birla is have good risk movement with Index performance.






-20.000
-10.000
0.000
10.000
20.000
30.000
40.000
50.000
60.000
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59
R
e
t
u
r
n

(
%
)

Months
Small and Mid cap
BSLMF Franklin IDFC HDFC
ICICI SUNDARAM DSP BlackRock CNX MIDCAP
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 63

Table No.13: ULTRA SHORT TERM FUND Schemes
BIRLA ICICI HDFC UTI Treasury Templeton INDEX



0.913 0.747 0.763
0.858
0.816 5.383
0.713 0.741 0.651
0.719
0.790 17.874
0.625 0.692 0.588
0.697
0.726 6.586
0.122 0.203 -0.230
0.243
0.255 -5.955
0.882 0.856 0.578
0.939
0.897 5.905
1.147 1.179 1.317
1.094
1.160 -4.995
1.059 0.967 0.901
0.875
0.954 -5.333
0.808 0.763 0.661
0.740
0.772 13.320
0.748 0.803 0.717
0.768
0.845 -7.949
0.741 0.731 0.656
0.732
0.814 1.570
0.659 0.653 0.570
0.630
0.693 9.548
0.765 0.758 0.652 0.754 0.793 3.269

Table No.14: Summary of Calculation for ULTRA SHORT TERM FUND
Schemes

BIRLA ICICI HDFC UTI Treasury Templeton INDEX
Mean return 0.765 0.758 0.652 0.754 0.793 3.269
SD 0.255 0.805 0.346 0.204 0.209 8.159
Variance 0.065 0.648 0.120 0.042 0.044 66.569
Co-variance -0.032 -0.133 -0.077 -0.016 -0.079

Beta -0.491 -0.205 -0.644 -0.391 -1.803

Sharpe's index 0.059 0.010 -0.284 0.020 0.206
Rank as per
sharpe II IV V III I

Treynors index -0.031 -0.038 0.152 -0.011 -0.024
Rank as per
treynor IV V I II III

Erp 1.393 0.146 0.491 0.597 0.593
Jenson's
decision
Over-
priced
Under-
priced
Under-
priced Under-priced
Under-
priced

Risk free 0.750 0.750 0.750 0.750 0.750

The above table shows expected returns (Erp) of Birla, ICICI,HDFC,UTI and
Templeton are 1.393, 0.146, 0.491, 0.597 and 0.593 respectively on monthly basis whereas
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 64

these mutual funds are generating 0.765, 0.758, 0.652, 0.754, and 0.793 per cent return ;
hence these all are good under priced.
Graph No.7: ULTRA SHORT TERM FUND Schemes


Interpretation:
Monthly return of all the schemes on the above graph and the return of BSE 200 S&P
clearly indicate that Majority of the funds are showing a movement along with the movement
in BSE 200 S&P. The value of Beta is also indicates the same. The Beta value of Birla,
HDFC, ICICI, UTI and Reliance is -0059, -0.205, -0.644, -0.391, and -1.803 respectively,
indicates that returns are likely to move along with the market, but Birlas movement is not
very good with Index performance. And Birla is not generating return as much Erp (expected
return) also not performing well with other peer group fund schemes. Investor is to most
prefer to invest in ICICI, it is generating high return.
An Empirical Study on Performance Evaluation of Birla Sun Life Mutual Fund Schemes with
Its Peer Mutual Fund Scheme

0.000
1.000
2.000
3.000
4.000
5.000
6.000
7.000
1 2 3 4 5 6 7 8 9 10 11 12 13
A
x
i
s

T
i
t
l
e

Axis Title
Ultra Short Term Fund
Templeton
UTI Treasury
HDFC
ICICI
BIRLA
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 65


Findings:
1. Large cap scheme: The Beta value of Birla, HDFC, ICICI, UTI and Reliance is 0.16,
0.14, 0.19, 0.16, and 0.08 respectively, indicates that returns are likely to move along
with the market. Its showing risk of funds, scheme of ICICI, Birla, and UTI have
high risk also returns are 1.83, 1.79, and 1.81 per cent respectively.
2. ELSS scheme: The Beta value of Birla, SBI HDFC, ICICI, and Reliance is - 0.08,
0.07, 0.09, 0.06, and 0.05 respectively. It indicates that Birla having more risk among
the all funds. ICICI, Reliance and HDFC having high return are 2.04, 1.81, and 1.81
per cent respectively.
3. Duration dynamic scheme: The value of Beta is also indicates the same. The Beta
value of Birla, HDFC, ICICI, UTI and Reliance is 1.699, 0.151, -0.797, 1.563, and
1.277respectively, indicates that returns are 0.64, 0.54, 0.61, 0.50, and 0.53 per cent
respectively only SBI fund have been under price with expected return but, Birla is
giving high return compare with all funds.
4. Duration Income Plus scheme: The Beta value of Birla, Templeton, ICICI, and UTI
is -0.19, 3.65, 1.17, and 0.30 respectively, indicates that returns are 0.46, 0.71, 0.57,
and 0.71 per cent respectively. All funds were not beat the expected returns of each,
the fund of Birla earning high returns compare with other funds.
5. MIP Hybrid-Aggressive scheme: The Beta value of Birla, UTI, HDFC, Reliance,
ICICI, and DFC is 0.33, 0.47, 0.48, 0.34, and 0.28 respectively, indicates that returns
are likely to move along approximately with market. But DFC is generating more
return 0.92 per cent it is very near approximately near to CRISIL index 1.02 per cent.
6. Small and Mid Cap scheme: The mean return of Birla, Franklin, IDFC, HDFC,
ICICI, Sundaram, and DSP BlackRock are 1.83, 2.34, 2.22, 2.36, 2.45, 2.26, and 2.23
per cent respectively .These funds have been Beat CNX MIDCAP Index return is1.45
per cent also, crossed the expected returns of all funds by Mean return.
7. Ultra Short Term Fund scheme: The Beta value of Birla, ICICI,HDFC, UTI and
Templeton is -0059, -0.205, -0.644, -0.391, and -1.803 respectively, indicates that the
risk of Templeton have very high, secondly HDFC and Birla have more risky. All
funds have comes into Under- priced category but Birla comes under Over priced
category.
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 66

8. The overall 7 Birla Sun Life mutual funds are have High and Medium risk and also
Return of all BSL MF schemes have generating well returns; volatility is based on
market/ index movement.
Suggestions:
1. Large cap scheme: I suggest to investor who want to invest in large cap linked
mutual funds invest in ICICI s large cap fund, this fund is generating return 1.83
per cent and its risk (Beta) is 0.19 per cent. Overall performance is extremely
good among all 5 different mutual funds.
2. ELSS scheme: From the findings I got knew about an investor who want invest in
ELSS funds he should be give first preference to do investment in ICICI
Prudential and second is to be in Reliance and HDFC tax, because these three
funds are generating 2.04, 1.81 and 1.80 per cent respectively. The risk of these
funds is 0.06, 0.05, and 0.09 per cent respectively.
3. Duration dynamic scheme: This is short term fund main objective only face low
risk. An investor should know about risk and return of funds, here I came to know
about all fund performance are not good but only SBI Dynamic Bond is
generating return 0.61 per and risk 0.245 per cent. Its very good fund for short
term investment.
4. Duration Income Plus scheme: This short term income generating fund type, it
is help to get income with low risk. The BLS income plus is very good performer
among all its peer group fund schemes. Birla is generating 0.46 per cent of mean
return and risk is 0.27 per cent.
5. MIP Hybrid-Aggressive scheme: This is balanced fund type, it have 60:40 or
50:50 equity and debt related portfolio investment option and it is suitable for
medium risk taking investor. All 5 funds are performing approximately well but
still DFC fund very well earning and risk is 0.92 and 0.28 per cent. So investor go
For DFC fund to do investment for both debt and equity related instruments
portfolio.
6. Small and Midcap scheme: This type of fund scheme is suitable for an investor
who wants to have ability to face the high and medium risk and more return, the
fund ICICI and Sundaram are very well performing among all 7 funds and these
A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 67

both funds beat CNX MIDCAP Index return 1.49 per cent also risk are 0.53, and
0.63 respectively.
7. Ultra Short Term Fund scheme: This very short term duration fund like 3 or 6
or 9 months durations income generating options, The Templeton and Birla are
performing well among all 5 funds scheme, these both generating return are 0.793,
and 0.765 per cent mean return respectively.



















A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 68

Conclusion:

From the study, we can derive the following conclusion about the products of
Birla Sun Life funds and its peer group mutual fund scheme.
The project study on A Comparative Performance Evaluation of Birla
Sun Life Mutual Fund Schemes with Its Peer Group Mutual Fund Scheme on
that bases of my research study I conclude that the investors should be invest in
Birlas short term and medium term funds. These funds are generating very good
returns with low and medium risk. Also the other funds have performing
approximately good to meet customer requirements.
Birla Sun Life mutual funds are known for its funds quality
performance and innovations in the field asset management of mutual funds. The
companys funds have been growing day by day, and became more professional in
fund management. Also other mutual funds like ICICI, SBI, HDFC, Sundaram, IDFC,
Templeton and UTIs funds are performing exceptional well in all other Large Cap,
Multi Cap, Dynamic duration and Income plus fund schemes except some small
things.
The industry is growing and it will still grow and with that competition will
also increase. So, in order to beat the competition the company and Investors should
implement good analysing of asset management with market completions and other
mutual fund schemes.







A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 69


Bibliography
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Security Analysis and Portfolio Management- By Dhanesh Khatri, Edition 2011
(Revised). Publication: MACMILLAN Publishers India Limited New Delhi

Articles
Determinants of Mutual Fund Performance With Specific Reference To Equity Linked
Savings Scheme (ELSS Tax Saver Fund) A Bibliographic Review: By N. Venkatesh
Kumar*; Dr. Ashwini Kumar Bj** *Assistant Professor& Head of the Department,
Acharya Institute of Technology, Bangalore - 560090. **Professor & Head of the
Department, Department of MBA, Nitte Meenakshi Institute of Technology,
Bangalore-560064.-ZENITHInternational Journal of Business Economics &
Management Research Vol.2 Issue 4, April 2012, ISSN 2249 8826 Online available at
http://zenithresearch.org.in/
An Empirical Study on Indian Mutual Funds Equity Diversified Growth Schemes
And Their Performance Evaluation by Dr. S.M.Tariq Zafar*, Dr. D.S.Chaubey**,
Syed Imran Nawab Ali***.-IJRIME Volume2, Issue2 ISSN: 2249-1619
Performance Evaluation Of Select Equity Funds In India: By Dr. Kuberudu
Burlakanti*; Ravi Varma Chiruvoori**,*Professor & Head - Department Of
Management Studies Andhra University Campus, Kakinada 533005 Andhra
Pradesh. **Assistant Professor & Head - Department Of Management Studies
Chaityanya Institute Of Science & Technology Kakinada 533005 Andhra Pradesh.:
International Journal Of Social Science & Interdisciplinary Research_ISSN 2277
3630, IJSSIR, Vol. 2 (5), MAY (2013) Online Available At
Indianresearchjournals.Com



A Comparative Performance Evaluation of BSL MF Schemes
With Its Peer Group Mutual Fund Scheme
Adept Institute of Management Studies and Research Dharwad. Page 70


Websites
www.amfiindia.com
www.moneycontrol.com
www.nseindia.com
www.bseindia.com
www.valueresearchonline.com
www.birlasunlife.com
www.utiicm.com
www.sebi.com
And 6 peer group of mutual funds schemes AMC websites.