INTRODUCTION

1
 CHAPTER 1
INTRODUCTION

Exchange trading funds are just what their name implies- basket of
securities that are traded, like individual stock on the exchange. Unlike regular
open-ended mutual funds ETF can be bought and sold throughout the trading
day like stock.
Most ETF charge lower annual expense than index mutual funds.
However, as with stocks, one must pay a brokerage to buy and sell ETF units
which can be significant drawback for that trade frequently or invest regular,
some of money.
Their passive nature is a necessity; the funds rely on arbitrage
mechanism to keep the prices at which they trade roughly in line with the net
asset values of their underlying portfolios.
Global assets under management held by exchange traded funds
(ETFs), one of the growing areas of world equity markets, soared by over 46%
in 2004 compared with 2003. The funds asset increased by 51% in USA, 66%
in Europe and nearly 10% in Japan. ETFs which are listed and traded like
equities, track indexes of stocks, bonds or other assets without requiring the
investors to buy all the index components.
An exchange-traded funds, or ETF, are a type of Investment Company
whose investment objective is to achieve the same return as a particular
market index. An ETF is similar to an index fund in that it will primarily invest in
the securities of companies that are included in a selected market index. An
ETF will incest in either all of the securities or a representative sample of the
securities included in the index. For example one type of ETF, know as Spiders
or SPDRs, invest in all of the stock contained in the S&P 500 composite Stock
Price Index.

2
1.1 STATEMENT OF THE PROBLEM

The study was performed mainly to assess the performance of

Exchange Traded Funds in India.

1.2 OBJECTIVES

1.2.1. PRIMARY OBJECTIVE

The primary objective of the study is to assess the performance of

Exchange Traded Funds in India

1.2.2 SECONDARY OBJECTIVES

To analyze the performance of ETFs and its benchmark with respect to

NAV of the fund and the index value.
To find out the weekly returns of the fund and then analyzing it with the
returns of the underlying index
To find out the tracking error of Exchange Traded Funds, so as verify the
funds performance to its underlying index.

1.3 SCOPE OF THE STUDY

This study focused on the performance evaluation of Exchange Traded

Funds. In this present Scenario, this will definitely help the investors to find out
where his funds stand in its performance. Also it will help the investor to
understand the various factors he should consider for the performance
evaluation of his fund
.

3
1.4 RESEARCH METHODOLOGY

Researchers in common refer to a search for knowledge .One can also

define research as a scientific and systematic search for pertinent information
on a specific topic. In fact, research is an art of scientific investigation.' Rodman
and Moray' define research as a "Systematized effort to gain new
knowledge" .Here we using the fundamental analysis as research methodology.

1.4.1 RESEARCH DESIGN

A Research Design is the arrangement conditions for collection and

analysis of data in a manner that aims to combine relevance to the research
purpose with economy in procedure. The Research Design used for the study
is analytical in nature.

1.4.2 METHOD OF DATA COLLECTION

In this study, the method used is secondary data. Secondary data

means data already available i.e. they referred to data which have already
been collected and analyzed. The data is collected from various websites and
published books.

The analysis was done on the basis of NAVs and Benchmark Index. The
NAVs of the selected ETFs are collected from AMFI India. The Benchmark
Index is collected from sites of different stock exchanges. The ETFs selected
with their corresponding benchmark index are:
1. Nifty Bees
2. Junior Nifty Bees
3. Bank Bees
4. UTI Sunder
5. ICICI Spice

4
 1.4.3PERIOD OF THE STUDY

Dec 17 2007 to March 17, 2008

1.5 TOOLS USED FOR THE STUDY

The study was conducted to analyze the performance, return and

tracking error of ETFs.

1.5.1 RETURN ANALYSIS

Percentage change in NAV = NAV (t)-NAV (t-1)/ NAV (t-1) * 100

Where
NAV (t) = NAV as on Date,
NAV (t-1) = Entry Value

1.5.2 TRACKING ERROR ANALYSIS

Tracking error is the difference between returns from the Index to that of
the Index.
Annualized Tracking Error = S.D of the differences between weekly
returns of the funds
And the index * square root of no. of weeks

1.6 LIMITATIONS OF THE STUDY

1. The data for the study were mostly collected from the websites. There
were no many books for references.

2. Since ETF being new concept non- availability of expert guidance and
literature was one of the serious difficulties faced during the conduct of
the study. This may likely to affect the quality of the project.

5
3. The performance of ETFs is affected by several factors like economic,
social, political, financial etc. but in this study only the financial factors
have been considered.

4. The data analyzed was for only five months so the performance was not
analyzed annually.

5. The time duration of the study was too short.

6
INDUSTRY
PROFILE

7
 CHAPTER 2

INDUSTRY PROFILE

2.1 EVOLUTION OF STOCK EXCHANGE IN INDIA:

The origin of the stock market relates back to the year 1494,
when the Amsterdam Stock Exchange was set up. In India it dates back to the
18th century and era when the East India Company was a dominant Institution
in India.

The Bombay Stock Exchange (BSE) was founded in the year

1875. About 150 brokers formed the Ahemedabad Shares and Stock
Association on 15 June 1908. In the year 1920, one stock exchange was
established in Northern India and one in Madras called The Madras Stock
Exchange. The Madras Stock Exchange Association Pvt Ltd. was established
in the year 1941. On 29th April 1959, it was reorganized as a company limited
by guarantee under the name and style of madras Stock Exchange (MSE). The
Lahore Stock Exchange was formed in the year 1934. However in the year
after the Punjab Stock Exchange Ltd came into existence, the Lahore Stock
Exchange merged with it. In Calcutta, a second Stock Exchange by the name
The Bengal Share& Stock Exchange Ltd. Was established in the year 1937 and
likewise once again in the year 1938, Bombay also witnessed a rival Stock
Exchange formed in the name of Indian Stock Exchange ltd, the U.P. The
Hyderabad Stock Exchange Ltd. Was incorporated in the year 1944.
Subsequently the Bangalore stock exchange was registered in the year 1957
and recognized in the year 1963. The third Stock exchange in the state of
Gujarat the Vadodara Stock Exchange Ltd was incorporated in 1990.

8
2.1.1 STOCK EXCHANGES IN INDIA

1. Ahmedabad stock exchange

2. Bangalore stock exchanges
3. Bhubaneswar stock exchange
4. Bombay stock exchange
5. Calcutta stock exchange
6. Cochin stock exchange
7. Coimbatore stock exchange
8. Delhi stock exchange
9. Guwahati stock exchange
10. Hyderabad stock exchange
11. Indore stock exchange
12. Jaipur stock exchange
13. Kanpur stock exchange
14. Ludhiana stock exchange
15. Madras stock exchange
16. Magadh stock exchange
17. Mangalore stock exchange
18. Pune stock exchange
19. Saurashtra stock exchange
20. Vadodhara stock exchange
21. NSE
22. OTCEI
23.Inter connected stock exchange
2.1.2 OVER THE COUNTER EXCHAGE OF INDIA
Promoted by a consortium of leading Financial Institutions of India
including Unit Trust of India (UTI), Industrial Credit & Investment Corporation of
India (ICICI), Industrial Development Bank of India (IDBI), Industrial Financial
Corporation of India (IFCI), Life Insurance Corporation of India (LIC) and
others, OTCEI is a recognized stock Exchange under the Securities Contracts
(Regulation) Act, 1956. It is set up to provide small and medium sized

9
companies access to the capital markets and to investors a convenient mode
of investments. It is ring less electronic national exchange listing an entirely
new set of companies which companies will not be listed on other stock
exchanges. The companies listed on any other exchanges cannot be listed on
OTCEI. The OTCEI Exchange can list companies with issued capital from Rs.
30lakhs to Rs.25 cores.

2.1.3 THE BOMBAY STOCK EXCHANGE (BSE)

Nine Elected Directors ( one-third of which retire every year by
rotation), and Executive Director, three Government Nominees, a Reserve
Bank of India Nominee and five public representatives constitute the Governing
Board of this Exchange which regulates the Exchange and decides its policies.
A president, a Vice president and Hon. Treasurer are annually elected from
among the elected Directors by the governing Board following the election of
Directors. The Executive Director as the Chief Executive Officer is responsible
for the day-to-day administration of the Exchange.

2.1.4 THE NATIONAL STOCK EXCHANGE (NSE)

The National Stock Exchange considered as arrival exchange to
the Bombay Stock Exchange is Indias leading Stock Exchange covering more
than 160cities and towns across the country. It provides a modern fully
computerized trading system designed to offer investors across the length and
breadth of the country a safe and easy way to invest or liquidate investment in
securities. It was incorporated in November 1992, recognized as a Stock
Exchange in April 1993, went live for debt markets in June 1994 and
commenced capital Market Operations in November 1994. Today it is the
largest exchange in India with a net work that trades 1400 equity stocks and
500 debt securities.

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2.2 COMPANY PROFILE

2.2.1 COCHIN STOCK EXCHANGE AN OVERVIEW

Cochin Stock Exchange (CSE) is one of the premier stock exchanges in

India. Established in the year 1978 the exchange has undergone tremendous
transformation over the gears. The exchange had a humble beginning with just
5 companies listed in 1978-79 and had only 14 members. Today the exchange
has 508 members and 240 listed companies. In 1989 the company went for
computerized of its offices. In ore o keep pace with the changing scenario in
the capital but CSE took various initiative including trading in dematerialized
trading called cochin online trading (COLT) on March 17, 1997. CSE was one
of the promoters of the interconnected stock exchange of India. The objective
was to consolidate the small, fragmented and less liquid muts in to a national
level integrated liquid mut.

CSBL is the first subsidiary of a stock exchange to get membership in

both NSE and BSE, and became participant in the Central Depositary Services
Ltd. The main activity in CSE is the work associated with its subsidiary Cochin
Stock Brokers ltd. So it was decided to allow CSBL to Utilize the whole system
and other assets of CSE for functioning of its subsidiary a total consideration of
Rs.2075 corers since the main activity of trading is taking place in CSBL staff of
the exchange is now on a depulation to its subsidiary CSBL.

Providing investors with high level of liquidity whereby the cost and time
involved in the entry and exit from the mut becomes the least.

Built infrastructure for capital mut by turning CSE into a financial super
market.

Spread equity call and to serve investors of the region.

Professional stock broking and investment management function.

11
 Impart capital mut knowledge to all intermediaries on a continuous
basis.Develop a winning team of professionals as employees of CSE
and its associates.

MEMBERSHIP PROFILE

Cochin stock exchange currently has 508membes. All the membes of

CSE has one share each of value Rs 1250 thus making the issued, subscribed
and paid up capital of RS. 580850. The authorized capital of CSE is Rs. 10,
00,000 with the total membership limited to 1000.

As per SEBI norms CSE charges an initial deposit of Rs. 2 lacks from
each of its members. Based on the volume of trade each member is to
contribute additional deposits. Along with this a monthly subscription fee of Rs.
200 for individual members will be charged by CSE. They are allowed to
appoint their assistants or sub-brokers based on the guidelines given by SEBI.
During the five years of membership each member has to pay Rs. 5000
annually to SEBI as advance payment on or before 1st October of each
financial year from 6th to the 10th year of membership the total amount payable
is Rs. 5000 which is payable at the beginning of the 6 th year (counted as
payment of Rs. 1000 per year). In addition to this, if the previous year turnover
is more than 1 crore then 0.01 the existing amount should also be paid to SEBI.

MANAGEMENT OF COCHIN STOCK EXCHANGE

The policy level Management of Cochin Stock Exchange is vested with

the council of management. The council of management is constituted with 13
members of whom 6 are elected from among the members of Cochin Stock
Exchange 2 persons nominated by EBI, one government and three public
representatives. The council of management appoints Executive Director and is
an ex-office member of the council.

The operations of any Stock Exchange can commerce only with the
recognition of the central government under the securities contract regulation

12
act, (SCR) 1956. The various regulations concerning the listing of companies
and the trading related activities are provided under SCR rules, 1957, the bye-
laws of the exchange give guidelines on opening / closing of Cochin Stock
Exchange, timing of trading, regulation of badla or carryover business, fixation,
of margins, making of prices, arbitration settlement of dispute

2.2.2 ORGANZATION STUCTURE OF COCHIN STOCK EXCHANGE

Finance dept

Administration dept

Marketing dept

Surveillance dept

Legal dept

System dept

13
MAJOR GLOBAL
ETFs AND ETFs
IN INDIA

14
 CHAPTER- 3

MAJOR GLOBAL ETFs AND ETFs IN INDIA

3.1 EXCHANGE TRADED FUNDS

ETFs are just what their name implies: baskets of securities that are
traded, like individual stocks, on an exchange. Unlike regular open-end mutual
funds, ETFs can be bought and sold throughout the trading day like any stock.

Most ETFs charge lower annual expenses than index mutual funds.
However, as with stocks, one must pay a brokerage to buy and sell ETF units,
which can be a significant drawback for those who trade frequently or invest
regular sums of money.

Their passive nature is a necessity: the funds rely on an arbitrage

mechanism to keep the prices at which they trade roughly in line with the net
asset values of their underlying portfolios. For the mechanism to work, potential
arbitragers need to have full, timely knowledge of a fund's holdings.

3.1.1 HISTORY OF ETFS

This section presents the ETFs operating at global level as well as ETFs
operating in India.

15
 (A) ETFS OPERATING AT GLOBAL LEVEL

The first ETF was launched in 1989 on Toronto Stock Exchange known as TIPS
35 (Toronto Index Participation Fund), since it follows the largest 35 stocks on
the Toronto Stock Exchange. In USA, ETFs came into existence in 1993 when
State Street Global Advisor together with American Stock Exchange developed
and launched the ETF market. The name of the ETF was SPDR (Standard and
Poors Depository Receipts) based on the S & P 500 Index. Presently, 200
ETFs are listed on various stock exchanges globally. Since its inception, ETFs
assets have grown by 350 times i.e. just from 465 US$ million to US$ 167
billion in July 2003 (NASDAQ web site).

(B) ETFS IN INDIA

In India, BMAM (Bench Mark Asset Management) company launched the first
ETF in December 2001 known as Nifty BeES followed by Junior BeES, UTI
Sunder, Liquid BeES and SPICE.

3.1.2 FEATURES OF ETFS

(I) BUYING AND SELLING FLEXIBILITY

ETFs are traded throughout the day because the prices of ETFs are readily
available throughout the day and in real time basis. Further, ETFs can be
purchased on margin, sold short and can be traded using stop orders and limit
orders. By this, the investors are allowed to specify the price point at which they
are willing to trade
(II) DIVERSIFICATION
As we know that ETFs are created on the indices, resulting investors are
protected from the risk arising from the price volatility in one particular security.

16
(III) LOW COST
Just like an index fund and ETF does not have to incur any cost on account of
active fund management because the fund is passively managed. Further
more, exchange trade mechanism reduces minimal collection, disbursement
and other processing charges.
(IV) TAX EFFICIENCY
Unlike mutual funds, ETFs are considered more tax efficient instruments
because:
ETFs generally generate lower capital gains due to lower turnover of
securities.
Most of trading in ETFs takes place between the large investors resulting
ETFs are not required to sell securities to meet investors cash redemption.
This generates potential capital gains tax liability for remaining investors.
(V) LOW TRACKING ERROR
The tracking error on an ETF is usually lower than index funds. The reason for
this is that funds allot unit for consideration in kind and this money has to be
invested in index stocks at a later date.
(VI) TRANSPARENCY
There is complete transparency while dealing with ETF because all the
participants are aware regarding the stocks. Therefore, there is no need to
worry about change in the stock being traded in.
3.1.3 TYPES OF ETFS

Broadly ETFs are classified into three types. These are as follows:

A) SECTOR BASED: Sector based ETFs are generally based on the

companies of one particular industry.Sector ETFs may track sector-based
indexes or simply correspond to a basket of companies thought to be
representative of a specific market sector.

17
Country Specific ETFs

Market Vectors Russia ETF - AMEX: RSX

SPDR Sector ETFs

Consumer Discretionary
Consumer Staples
Energy
Financials Health Care
Industrials
Materials
Technology
Utilities Van Eck Sector ETFs
Agribusiness

Environmental Services
Global Alternative Energy
Gold Miners
Nuclear Energy

Power Shares Sector ETFs (not exhaustive)

Aerospace & Defense

Cleantech
Financial Preferred
Listed Private Equity
Lux Nanotech
Water Resources
WilderHill Clean Energy
Wilder Hill Progressive Energy
Dynamic Banking
Dynamic Basic Materials Sector

18
 Dynamic Biotechnology & Genome

B) BROAD BASED: Broad based ETFs are generally based on a broad group
of stock from different industries.
GLOBAL ETF: There are ETFs tracking indices beyond the domestic
markets.Ex specific regional funds that track fast growing markets in China and
Korea.
FIXED INCOME ETF: ETF tracking fixed income products. ETF in this case
may declare and pay dividends.
COMMODITY ETF: ETF that track commodity or commodity indices take
advantage from the gains in the commodity market. Trading in ETF takes place
on the stock exchanges during trading hours. The Mutual fund units are
however purchased from the Mutual Fund at NAV at the end of the day. The
expenses are low in an ETF since there is no active fund management involved
as in case of mutual funds. The costs in mutual funds are higher in short term
since they are subject to load fees, annual management fees, exit fees etc.
These are intended to discourage frequent trading. Commodity ETFs, also
known as exchange-traded commodities (ETCs), track a specific commodity or
a general commodity index, such as:
Gold exchange-traded funds (GETFs), such as street TRACKS Gold
Shares (NYSE: GLD) and iShares Comex Gold Trust (AMEX: IAU)
Silver by iShares (NYSE: SLV)
Petroleum by ETF Securities (LSE: OILB and LSE: OILW) & United States
Oil Fund LP ETF Template:USO
Steel ETFs, such as Van Eck's Market Vectors Steel (AMEX: SLX) which
tracks the Amex Steel Index.

CURRENCY ETF: ETF tracking currency or currencies. Ex ETF- Euro

Currency Trust
(FXE) was introduced in Dec 2005 which trades on the NYSE. Hence investors
can take exposure in Euro through this fund. It is also important to understand
the difference between a Mutual Fund and ETF.

19
3.1.4 POPULAR ETFS

Globally, there are 279 ETFs listed and traded across the world with assets
under management of US$ 120 billion. More than 60% of trading volume on
American Stock Exchange (AMEX) is in ETFs.

STANDARD & POOR'S 500 INDEX DEPOSITORY RECEIPTS (SPY: AMEX)

The first and still the biggest ETF, this inexpensive fund (pronounced Spiders)
tracks the S & P 500 index, which is widely regarded as the standard for
measuring large-capitalization U.S. stock market performance. Some selectivity
by Standard & Poor's surrounds an otherwise methodical list of the 500 largest
traded firms.

NASDAQ-100 INDEXES TRACKING STOCK (QQQ: AMEX)

Tracks the Nasdaq-100 index, which includes 100 of the largest companies
listed on The NASDAQ Stock Market based on market capitalization. It is
widely perceived as a technology benchmark and includes computer hardware
and software, telecommunications, retail/wholesale trade and biotechnology. It
does not contain financial companies or investment companies.

DIAMONDS TRUST (DIA: AMEX)

This popular ETF Tracks the Dow Jones Industrial Average, a benchmark of 30
blue chip stocks selected by The Wall Street Journal. The index is highly
subjective and rather antiquated in its formula but serves as a good barometer
for very large old-line US companies.

ISHARES S & P 500 (IVV: AMEX)

Barclays' slightly less expensive version of the SPDR tracks the S&P 500
index, which is widely regarded as the standard for measuring large-

20
capitalization U.S. stock market performance. Some selectivity by Standard &
Poor's surrounds an otherwise methodical list of the 500 largest traded firms.

STANDARD & POOR'S MIDCAP 400 SPDRS (MDY: AMEX)

Tracks the S & P Madcap 400 index, which measures the performance of the
mid-size company segment of the U.S. market and complements the S&P 500
seamlessly.

ISHARES RUSSELL 2000 (IWM: AMEX)

Tracks the Russell 2000 index, a popular benchmark for mid- and small-cap
companies. The Russell 2000 Index represents the second tier of U.S. equities,
or companies with market values between $20 million and $300 million, which
account for approximately 8 to 9 percent of the total market. Russell's
methodology leads to relatively high turnover.

ISHARES MSCI EAFE (EFA: AMEX)

The iShares MSCI EAFE Index Fund tracks the MSCI EAFE Index, the top
non-US large capitalization index that includes all major economies (except
US) and no emerging markets. A popular way to gain foreign exposure.

TOTAL STOCK MARKET VIPERS (VTI: AMEX)

The Vanguard Group's core portfolio ETF tracks the Wilshire 5000 broad
market index, which is one of the broadest indexes for the U.S. equity market,
measuring the performance of the vast majority of all U.S. headquartered public
companies. Considered an excellent proxy to the US economy as a whole.

ISHARES SMALLCAP 600 (IJR: AMEX)

Tracks the S & P Small Cap 600 index, which measures the performance of the
small-capitalization US companies.

21
CONSUMER SERVICES SELECT SECTOR SPDR (XLV: AMEX)

One of the many sector ETFs from S & P, which tracks consumer services
companies selected from the S&P 500 index.

3.1.5 TRADING MECHANISM OF ETFS

An ETF is created through an Initial Public Offering (IPO) by the Asset

Management Company (AMC) in which only Authorized Participants (Aps) i.e.
institutional investors, mutual funds, insurance companies, etc are allowed to
participate. These APs exchange their portfolio of stock and cash components
for ETFs, also known as creation units. Thus, these creation units are made up
of two components, namely, Portfolio Deposits (PDs) and cash components.
Portfolio Deposits consist of basket of shares that make an index where as the
cash component is the difference between the applicable NAV and the market
value of the portfolio deposits.
The ETF units that the APs buy from the sponsor or AMC
are then traced on the stock exchange. As far as price mechanism is
concerned, ETFs do not necessarily trade on the NAV of their underlying
holdings. Instead, the forces of the demand and supply in the market determine
the market price of an ETF unit. If the demand for the ETF in the market
increases, then ETF would start trading at premium from its intrinsic value,
which should be equal in proportion to the index that it is charting. In such a
case, an AP will deliver the shares and buy ETF units from the sponsor. On the
other hand, if an ETF is traded at discount to NAV, an AP will immediately
deliver the units to the sponsor and get back the shares.

3.1.6 ETFS VS. OPEN ENDED FUNDS VS. CLOSE-ENDED FUNDS

In essence, ETFs trade like stocks and therefore offer a degree of flexibility
unavailable with traditional mutual funds. Specifically, investors can trade ETFs
throughout the trading day as in stocks.

22
In comparison, in a traditional mutual fund, investors can purchase units only at
the funds NAV, which is published at the end of each trading day. In fact,
investors cannot purchase ETFs at the closing NAV. This difference gives rise
to an important advantage of ETFs over traditional funds:

ETFs are immediately tradable and consequently, the risk of price differential
between the time of investment and time of trade is substantially less in the
case of ETFs.

ETFs can be bought / sold through trading terminals anywhere across the
country.

Table presents a comparative view ETFs vis--vis other funds.

Open Ended Exchange Traded

Parameter Closed Ended Fund
Fund Fund
Fund Size Flexible Fixed Flexible
NAV Daily Daily Real Time
Liquidity Stock Market / Fund
Fund itself Stock Market
Provider itself
At NAV plus Significant Premium / Very close to actual
Sale Price
load, if any Discount to NAV NAV of Scheme
Through Exchange
Through Exchange
Availability Fund itself where listed / Fund
where listed
itself.
Portfolio
Monthly Monthly Daily/Real-time
Disclosure
Equalizing Equalizing Cash,
Uses -
cash Hedging, Arbitrage
Intra-Day
Not possible Expensive Possible at low cost
Trading

3.1.7 TRACKING ERROR

23
 Tracking error is defined as the annualized standard deviation of the
difference in returns between the Index fund and its target index. In simple
terms, it is the difference between returns from the Index fund to that of the
Index. An Index fund manager needs to calculate his tracking error on a daily
basis especially if it is open-ended fund. Lower the tracking error, closer are the
returns of the fund to that of the target Index. Tracking error is always
calculated against the Total Returns Index which shows the returns on the
Index portfolio, inclusive of dividend.
Tracking error indicates:
How closely the fund is tracking the Index. It refers to how close the
weightages of the stocks in the Index. The more closely the weightage of
the stocks are tracked in the Index, lower will be the tracking error. The
factors that affect tracking error are inflows/outflows in the fund,
corporate actions, change of Index constituents and the level of cash
maintained in the fund for liquidity purpose.
The cost that routinely subtracts from the fund returns: Expenses like
transaction costs including brokers commission bid and ask spread, etc.
gets subtracted from the returns of the fund. Higher the expenses
incurred, greater will be the tracking error.

REASONS OF TRACKING ERROR

EXPENDITURE INCURRED BY THE FUND: Ideally, all the corpus of

the fund has to be invested in the securities of the benchmarked Index,
as the objective of the scheme is to mimic the returns of the underlying
index. But it is not possible, as the fund has to incur expenses towards
its day to day management, transaction fees, payable at the time of
purchase or sale of securities, etc. The expenditure of the fund has to be
met out of the corpus of the fund, which means that the fund will invest
fewer funds than what it has collected. This in turns affects the returns
as the fund will receive returns only on the amount which is invested.

24
 Hence, the lower the expenditure incurred by the fund, the lower will be
the tracking error.
CASH BALANCE: The investment pattern of the fund provides for the
asst allocation pattern. Ideally, the full corpus of the fund has to be
invested in the underlying index. But this may not be possible due to the
funds obligation to meet requests for redemption, receipt of dividend,
etc. The fund has to set aside some amount of its corpus to meet the
redemption request. As the redemption has to be made within a few
days, the fund has to hold cash or other short term assets which enable
it to convert such instrument in cash.
GIVING EFFECT TO THE CORPORATE ACTIONS: Whenever there is
a corporate action such as debenture or warrant conversion, rights,
merger, change in constituents, bonus, preferential issue, etc. the fund
has to realign its portfolio to the benchmarked index. This leads to
buying and selling which add up to the expenditure which again affect
the returns of the fund. In addition, the realignment has to be proper;
otherwise, there would be a mismatch in the investment in each security
of the benchmarked Index vis--vis the actual weightage of each
security in the benchmarked Index.
UNDERLYING SECURITIES BREACHING THE UPPER OR LOWER
CIRCUIT: The fund has to re-balance its investment for which it has to
buy or sell securities. Sometimes, it may happen that the fund is not able
to buy or sell the underlying securities due to circuit filters imposed on
them. Hence, the fund is not able to buy or sell securities at the desired
price or at the same time when the rest of the underlying securities are
purchase or sold.
ROUNDING OFF QUANTITY OF SHARES UNDERLYING THE INDEX:
As mentioned earlier an Index Fund has to invest in the securities of the
benchmarked Index in the same proportion or weightage of the security
as it has in the Index. However, while determining the number of shares
that need to be purchased for each security, one would need to round off

25
 this number as the minimum number of shares that can be purchased on
the exchange.

3.2 ETFS IN INDIA

India's top lender, State Bank of India, is planning to launch a gold-focused

ETF (available in India only) while hoping a booming economy will boost
demand for the precious metal. A few gold ETFs are available in India but are
less than a year old. The big news is the three providers already have more
than 3 tones of gold. Gold prices have jumped 30% in 3 months. Likewise,
wider media coverage of high prices also attracted money into ETFs allowing
people to buy the metal on an exchange without physical delivery. Street
Tracks Gold Shares (GLD), the world's largest gold ETF, rose to a record
599.50 tones earlier this month.

3.2.1 ETFS LAUNCHED ON NSE

BeES (Benchmark Exchange Traded Scheme) are a family of Exchange

Traded Funds (ETFs) launched by Benchmark Mutual Fund. ETFs are mutual
fund schemes, which combine the best features of open ended and close-
ended funds. They are like stocks - listed on NSE, liquid, tradable throughout
the day, priced continually and in demat form.
BeES represent a unique tool for investing in a mutual fund at the price and
time you choose. For the convenience sake, these ETFs are divided into
different categories are as follows:

S&P CNX Nifty UTI Notional Depository Receipts Scheme (SUNDER)

Liquid Benchmark Exchange Traded Scheme (Liquid BeES)

Junior Nifty BeES

Nifty BeES

26
 Bank BeES

PSUBNKBEES

KOTAKGOLD

GOLDSHARE

GOLDBEES

KOTAKPSUBK

RELGOLD

S&P CNX NIFTY UTI NOTIONAL DEPOSITORY RECIEPTS SCHEME

(SUNDER)

S&P CNX NIFTY UTI NOTIONAL DEPOSITORY RECIEPTS SCHEME

(SUNDER) is a passively managed open-ended exchange traded fund, with the
objective to provide investment returns that, before expenses, closely
correspond to the performance and yield of the basket of securities underlying
the S&P CNX NIFTY Index. SUNDER will have all benefits of index funds such
as diversification, low cost and a transparent portfolio and the flexibility of
trading like a share. Thus it provides the best features of both open-ended fund
and a listed stock.

ISIN code INF789F01042

NSE symbol UTISUNDER
Inception Date July 11, 2003
Related Index S&P CNX Nifty
Face value Rs. 100

HIGHLIGHTS

27
 Face value of each units of SUNDER is Rs.100/-.

Valuation of each unit of SUNDER will be approximately 1/10th the value

of S&P CNX NIFTY.
SUNDER shares will traded on NSE in compulsory dematerialized form
Minimum trading lot for SUNDER share in the markets will be 1 unit.
Creation unit size (10,000 units plus multiples of 2,000 units in case of
"Authorized Participants" and 500,000 units plus multiples of 20,000
units for other investors)
NAV of SUNDER declared on a daily basis.
Initial expenses of the present scheme will be borne by UTI AMC.

NIFTY JUNIOR BEES

Junior BeES trades on the Capital Market segment of NSE. Each Junior BeES
unit is 1/100th of the CNX Nifty Junior Index value. Junior BeES units are
traded and settled in dematerialized form like any other share in the rolling
settlement.

OBJECTIVES

the investment objective of Junior BeES is to provide returns that, before

expenses, closely correspond to the returns of securities as represented by the
CNX NIFTY JUNIOR.

Inception Date February 21, 2003

Related Index CNX Nifty Junior
Exchange Listed NSE
Entry/ Exit Load Nil
Face Value (Per unit) Rs. 1.25
Pricing (Per unit) 1/100th of Index
Minimum Lot - NSE One unit/share

28
Minimum Lot Direct 16,000 Units
Expense Ratio 1.00%(actual)
NSE Symbol JUNIORBEES

FIRST MID-CAP INDEX FUND IN INDIA

Junior BeES is the first mid-cap index fund in India. Till now, investors had
access to index funds based on Nifty or Sensex indices only.

Junior BeES outperformed all diversified equity schemes as on 31st March

2004 with over 180% returns more

NIFTY BEES

OBJECTIVES

The Investment objective of Nifty BeES is to provide investment returns that,

before expenses, closely correspond to the total returns of securities as
represented by the S&P CNX Nifty Index.

Inception Date December 28, 2001

Related Index S&P CNX Nifty
Exchange Listed NSE
Entry/ Exit Load Nil
Face Value Rs. 10
Pricing (Per unit) 1/10th of Index
Minimum Lot - NSE One unit/share
Net Assets Rs. 29.41 Crores
Expense Ratio 0.80%
NSE Symbol JUNIORBEES

GOLDEN PEACOCK AWARD

29
Nifty BeES won the Golden Peacock Award in the Most Innovative Financial
Product in 2002-03 Categories given by the Institute Of Directors (IOD), Delhi

ADVANTAGES OF NIFTY BEES

Nifty BeES is Simple: Nifty BeES can be bought / sold like a share
through any NSE terminal at prices available on the screen. The
underlying portfolio of Nifty BeES very closely replicates that of the S&P
CNX Nifty. Hence, Nifty BeES tracks the movement of S&P CNX Nifty.

Nifty BeES is Economical: Nifty BeES is a no load scheme. The annual

expense ratio including management fees is a maximum of 0.80% of the
Daily Average Net Assets, which is one of the lowest for any mutual fund
scheme in India. The costs reduce further to 0.65%, for assets over
Rs.500 crore.
Nifty BeES is Convenient: As it is listed and traded on the NSE, Nifty
BeES can be bought / sold throughout the trading day just by a call to
your broker. This gives you the power to react swiftly to changes in the
market. You can even place limit orders. Nifty BeES can be held in your
DP account with other portfolio holdings.
Nifty BeES is Liquid: The structure of Nifty BeES attracts liquidity from
various sources such as buying / selling by investors, arbitrage with
index futures, and arbitrage by authorized participants with the
underlying shares.
Nifty BeES is Neutral: The performance of Nifty BeES is simply the
result of performance of shares in the S&P CNX Nifty Index and demand
& supply in the market. There is no Fund manager bias.
Nifty BeES is Transparent: As Nifty BeES replicates the S&P CNX Nifty;
investors can know at any given point of time where and how much is
invested in each stock.

30
 Nifty BeES gives Instant Diversification: Investing in just one unit gives
exposure to fifty shares of the S&P CNX Nifty. This allows investors to
spread risk with one single decision.
Nifty BeES is an Equitable Structure: The unique in-kind mechanism
of creating / redeeming Nifty BeES by exchanging a pre-defined portfolio
ensures that long-term investors do not bear the cost of short term
trading as observed in traditional Open-ended structure. This insulates
long-term investors from short-term trading activity.

BANK BEES

Banking Index Benchmark Exchange Traded Scheme (Bank BeES) is an Open

Ended Index Fund listed on the National Stock Exchange in the form of an
Exchange Traded Fund (ETF) tracking the CNX Bank Index.

Bank BeES is designed to provide returns that closely correspond to the total
returns of stocks as represented by the CNX Bank Index.

Bank BeES have benefits of index funds such as low cost and a transparent
portfolio.

Inception Date May 27, 2004

Related Index CNX Bank
Exchange Listed NSE
Entry/ Exit Load Nil
Face Value Rs. 10
Pricing (Per unit) 1/10th of Index
Minimum Lot - NSE One unit/share
Minimum Lot Direct 10,000 Units
Expense Ratio 0.55%
NSE Symbol BANKBEES

Bank BeES can be bought / sold like any other stock on the National Stock

31
Exchange of India Ltd. (NSE) or the Authorized Participants and Large
Investors can directly buy/sell units with the Fund in Creation Units Size.

The structure of Bank BeES is such that it does not hurt long-term investors
from the inflow and outflow of short-term investors.

Due to the various advantages, ETFs is one of the fastest growing fund
structures in the world. Bank BeES will be available in Dematerialized form.
This will help in consolidating with other portfolio holdings.

3.2.2 ETF LAUNCED ON BSE SENSEX

The only ETF, which reflects the Sensex, is SPICE. Prudential ICICI introduced
it on January 9, 2003 with the objective to provide returns corresponding with
that of Sensex. The scheme is managed by Prudential ICICI Asset
Management Company (AMC) Ltd. and listed on both The Stock Exchange,
Mumbai (BSE) and The Delhi Stock Exchange (DSE).

Inception Date January 9, 2003

Prudential ICICI Mutual
Company Name
Fund ('SPIcE')
Exchange Listed BSE
Entry/ Exit Load Nil
Face Value Rs. 100
Pricing (Per unit) 1/10th of Index
Scrip ID SPICE-ETF
Scrip Code 555 555

One unique feature of SPIcE is that it can be bought and sold like any other
equity share on the BSE trading terminal (BOLT) through a stockbroker. The
minimum lot size will be one unit of SPIcE. Effectively, a retail investor can buy
one SPIcE unit for Rs. 33 and hold it in his Demat account just like any other
security.
.

32
ADVANTAGES OF SPICE

Instant exposure to a well-diversified portfolio of 30 quality stocks forming part

of SENSEX.

Real-time buying and selling of SPIcE units throughout the trading hours just
like any other equity share.

Since once SPIcE unit is traded at 1/100th of SENSEX, the minimum

investment for a retail investor will be low.

The price of each unit of SPIcE would move in tandem with the SENSEX,
making the whole process extremely transparent.

No sales load for investor.

Low expense ratio.

33
DATA ANALYSIS

34
 CHAPTER 4
DATA ANALYSIS

TABLE NO: 1
SHOWING WEEKLY PERFORMANCE OF NET ASSET VALUE OF
NIFTY BeES
DATE NAV
01-Aug-07 439.408
08-Aug-07 451.471
14-Aug-07 442.169
22-Aug-07 420.383
29-Aug-07 441.154
05-Sep-07 452.992
12-Sep-07 455.603
19-Sep-07 479.366
26-Sep-07 500.062
03-Oct-07 527.243
10-Oct-07 550.371
17-Oct-07 562.198
24-Oct-07 555.912
31-Oct-07 596.541
07-Nov-07 584.697
14-Nov-07 600.313
21-Nov-07 562.288
28-Nov-07 567.926
05-Dec-07 600.379
12-Dec-07 622.271
19-Dec-07 581.146
26-Dec-07 613.961

35
GRAPH NO:1

SHOWING PERFORMANCE OF NIFTY BeES

INTERPRETATION

From the above chart it is clear that the fund performance symmetric with
respect to the benchmark. Both of them had a bearish trend in the months
August and had a bullish trend in the month of December.

36
TABLE NO:2

SHOWING PERFORMANCE OF S&P CNX NIFTY INDEX

DATE S&P CNX Nifty

Index
01-Aug-07 4345.85
08-Aug-07 4462.1
14-Aug-07 4370.2
22-Aug-07 4153.15
29-Aug-07 4359.3
05-Sep-07 4475.85
12-Sep-07 4496.85
19-Sep-07 4732.35
26-Sep-07 4940.5
03-Oct-07 5210.8
10-Oct-07 5441.45
17-Oct-07 5559.3
24-Oct-07 5496.15
31-Oct-07 5900.65
07-Nov-07 5782.35
14-Nov-07 5937.9
21-Nov-07 5561.05
28-Nov-07 5617.55
05-Dec-07 5940
12-Dec-07 6159.3
19-Dec-07 5751.15
26-Dec-07 6070.75

37
 GRAPH NO:2

SHOWING PERFORMANCE OF S&P CNX NIFTY

INTERPRETATION

From the above chart it is clear that the fund performance symmetric with
respect to the benchmark. Both of them had a bearish trend in the months
August and had a bullish trend in the month of December.

38
TABLE NO:3

SHOWING WEEKLY PERFORMANCE OF NET ASSET VALUE OF JUNIOR

NIFTY BeES

DATE NAV
01-Aug-07 85.9491
08-Aug-07 90.1769
14-Aug-07 87.2401
22-Aug-07 80.9007
29-Aug-07 86.2353
05-Sep-07 89.8583
12-Sep-07 91.0083
19-Sep-07 94.5806
26-Sep-07 98.3031
03-Oct-07 102.914
10-Oct-07 102.234
17-Oct-07 101.054
24-Oct-07 100.683
31-Oct-07 108.357
07-Nov-07 106.188
14-Nov-07 110.419
21-Nov-07 109.907
28-Nov-07 113.289
05-Dec-07 122.167
12-Dec-07 123.842
19-Dec-07 118.548
26-Dec-07 124.291

39
GRAPH NO:3

SHOWING PERFORMANCE OF JUNIOR NIFTY BeES

INTERPRETATION

From the above chart it is clear that the fund performance symmetric with
respect to the benchmark. Both of them had a bearish trend in the months
August and had a bullish trend in the month of December.

40
TABLE NO:4

SHOWING PERFORMANCE OF CNX NIFTY JUNIOR

DATE CNX Nifty Junior

Index

01-Aug-07 8427.05
08-Aug-07 8844
14-Aug-07 8556.3
22-Aug-07 7932.05
29-Aug-07 8454.85
05-Sep-07 8813.4
12-Sep-07 8924.45
19-Sep-07 9277.45
26-Sep-07 9645.6
03-Oct-07 10102.7
10-Oct-07 10032.8
17-Oct-07 9923
24-Oct-07 9888.4
31-Oct-07 10643.3
07-Nov-07 10431.3
14-Nov-07 10850.4
21-Nov-07 10802.3
28-Nov-07 11138.1
05-Dec-07 12015.8
12-Dec-07 12190
19-Dec-07 11669.7
26-Dec-07 12239.4

41
GRAPH NO:4

SHOWING PERFORMANCE OF CNX NIFTY JUNIOR INDEX

INTERPRETATION

From the above chart it is clear that the fund performance symmetric with
respect to the benchmark. Both of them had a bearish trend in the months
August and had a bullish trend in the month of December.

42
TABLE NO:5

SHOWING WEEKLY PERFORMANCE OF NET ASSET

VALUE OF ICICI PRUDENTIAL SPICE

DATE NAV
01-Aug-07 143.359
08-Aug-07 139.092
14-Aug-07 144.59
22-Aug-07 143.845
29-Aug-07 145.565
05-Sep-07 148.258
12-Sep-07 144.323
19-Sep-07 147.445
26-Sep-07 138.162
03-Oct-07 130.307
10-Oct-07 133.171
17-Oct-07 130.472
24-Oct-07 134.81
31-Oct-07 129.821
07-Nov-07 135.692
14-Nov-07 139.692
21-Nov-07 145.043
28-Nov-07 142.387
05-Dec-07 141.309
12-Dec-07 142.937
19-Dec-07 148.197
26-Dec-07 148.081

43
GRAPH NO:5

SHOWING PERFORMANCE OF ICICI PRUDENTIAL SPICE

INTERPRETATION

From the above chart it is clear that the fund performance symmetric with
respect to the benchmark. Both of them had a bearish trend in the months
November and had a bullish trend in the month of September.

44
TABLE NO: 6

SHOWING PERFORMANCE OF SENSEX

DATE Sensex
01-Aug-07 13942.2
08-Aug-07 13566.3
14-Aug-07 14114.7
22-Aug-07 14041.2
29-Aug-07 14212
05-Sep-07 14478.2
12-Sep-07 14091
19-Sep-07 14402.9
26-Sep-07 13478.8
03-Oct-07 12697.1
10-Oct-07 12983
17-Oct-07 12705.9
24-Oct-07 13124.3
31-Oct-07 12624.6
07-Nov-07 13189.5
14-Nov-07 13607
21-Nov-07 14136.7
28-Nov-07 13872.4
05-Dec-07 13765.5
12-Dec-07 13929.3
19-Dec-07 14453.7
26-Dec-07 14544.5

45
GRAPH NO:6

SHOWING PERFORMANCE OF SENSEX

INTERPRETATION

From the above chart it is clear that the fund performance symmetric with
respect to the benchmark. Both of them had a bearish trend in the months
November and had a bullish trend in the month of September.

46
TABLE NO: 7

SHOWING WEEKLY PERFORMANCE OF NET ASSET

VALUE OF UTI SUNDER

DATE NAV
01-Aug-07 446.24
08-Aug-07 458.481
14-Aug-07 449.083
22-Aug-07 426.972
29-Aug-07 448.076
05-Sep-07 460.048
12-Sep-07 462.695
19-Sep-07 486.684
26-Sep-07 507.695
03-Oct-07 535.128
10-Oct-07 558.278
17-Oct-07 570.088
24-Oct-07 563.745
31-Oct-07 605.731
07-Nov-07 593.635
14-Nov-07 609.487
21-Nov-07 570.754
28-Nov-07 576.45
05-Dec-07 609.291
12-Dec-07 631.713
19-Dec-07 590.029
26-Dec-07 623.331

47
GRAPH NO :7

SHOWING PERFORMANCE OF UTI SUNDER

INTERPRETATION

From the above chart it is clear that the fund performance symmetric with
respect to the benchmark. Both of them had a bearish trend in the months
August and had a bullish trend in the month of December.

48
TABLE NO: 8

SHOWING PERFORMANCE OF S&P CNX NIFTY INDEX

DATE S&P CNX Nifty

Index

01-Aug-07 4345.85
08-Aug-07 4462.1
14-Aug-07 4370.2
22-Aug-07 4153.15
29-Aug-07 4359.3
05-Sep-07 4475.85
12-Sep-07 4496.85
19-Sep-07 4732.35
26-Sep-07 4940.5
03-Oct-07 5210.8
10-Oct-07 5441.45
17-Oct-07 5559.3
24-Oct-07 5496.15
31-Oct-07 5900.65
07-Nov-07 5782.35
14-Nov-07 5937.9
21-Nov-07 5561.05
28-Nov-07 5617.55
05-Dec-07 5940
12-Dec-07 6159.3
19-Dec-07 5751.15
26-Dec-07 6070.75

49
GRAPH NO:8

SHOWING PERFORMANCE OF S&P CNX NIFTY INDEX

INTERPRETATION

From the above chart it is clear that the fund performance symmetric with
respect to the benchmark. Both of them had a bearish trend in the months
August and had a bullish trend in the month of December.

50
TABLE NO: 9

SHOWING WEEKLY PERFORMANCE OF NAV OF BANK BeES

DATE NAV
01-Aug-07 671.675
08-Aug-07 704.558
14-Aug-07 678.041
22-Aug-07 628.729
29-Aug-07 656.168
05-Sep-07 685.312
12-Sep-07 680.92
19-Sep-07 742.599
26-Sep-07 777.932
03-Oct-07 812.057
10-Oct-07 805.266
17-Oct-07 812.101
24-Oct-07 824.909
31-Oct-07 903.284
07-Nov-07 910.911
14-Nov-07 963.117
21-Nov-07 884.709
28-Nov-07 898.785
05-Dec-07 959.744
12-Dec-07 1007.19
19-Dec-07 925.459
26-Dec-07 976.855

51
GRAPH NO:9

SHOWING PERFORMANCE OF BANK BeES

INTERPRETATION

From the above chart it is clear that the fund performance symmetric with
respect to the benchmark. Both of them had a bearish trend in the months
August and had a bullish trend in the month of December.

52
TABLE NO:10

SHOWING THE PERFORMANCE OF CNX BANKING INDEX

DATE CNX Banking

Index

01-Aug-07 6637.35
08-Aug-07 6966.8
14-Aug-07 6702.35
22-Aug-07 6210.45
29-Aug-07 6485.71
05-Sep-07 6777.65
12-Sep-07 6784.4
19-Sep-07 7401.85
26-Sep-07 7755.9
03-Oct-07 8097.9
10-Oct-07 8030.65
17-Oct-07 8099.9
24-Oct-07 8228.65
31-Oct-07 9013.15
07-Nov-07 9090.2
14-Nov-07 9613.05
21-Nov-07 8829.8
28-Nov-07 8970.85
05-Dec-07 9581.3
12-Dec-07 10056.7
19-Dec-07 9240.35
26-Dec-07 9755.2

53
 GRAPH NO:10

SHOWING PERFORMANCE OF CNX BANKING INDEX

INTERPRETATION

From the above chart it is clear that the fund performance symmetric with
respect to the benchmark. Both of them had a bearish trend in the months
August and had a bullish trend in the month of December.

54
TABLE NO:11 SHOWING WEEKLY RETURNS OF NIFTY BEES AND
S&P CNX NIFTY INDEX
Date NAV Nifty Bees S&P CNX S&P CNX Nifty
Return % Nifty Index Index Return %
01-Aug-07 439.4082 4345.85
08-Aug-07 451.4713 2.7453 4462.10 2.6750
14-Aug-07 442.1688 -2.0605 4370.20 -2.0596
22-Aug-07 420.3832 -4.9270 4153.15 -4.9666
29-Aug-07 441.1540 4.9409 4359.30 4.9637
05-Sep-07 452.9916 2.6833 4475.85 2.6736
12-Sep-07 455.6028 0.5764 4496.85 0.4692
19-Sep-07 479.3658 5.2157 4732.35 5.2370
26-Sep-07 500.0623 4.3175 4940.50 4.3984
03-Oct-07 527.2433 5.4355 5210.80 5.4711
10-Oct-07 550.3712 4.3866 5441.45 4.4264
17-Oct-07 562.1980 2.1489 5559.30 2.1658
24-Oct-07 555.9121 -1.1181 5496.15 -1.1359
31-Oct-07 596.5407 7.3085 5900.65 7.3597
07-Nov-07 584.6974 -1.9853 5782.35 -2.0049
14-Nov-07 600.3131 2.6707 5937.90 2.6901
21-Nov-07 562.2877 -6.3343 5561.05 -6.3465
28-Nov-07 567.9264 1.0028 5617.55 1.0160
05-Dec-07 600.3792 5.7143 5940.00 5.7400
12-Dec-07 622.2714 3.6464 6159.30 3.6919
19-Dec-07 581.1463 -6.6089 5751.15 -6.6266
26-Dec-07 613.9607 5.6465 6070.75 5.5571

GRAPH NO:11
WEEKLY RETURNS OF NIFTY BEES AND S&P CNX NIFTY INDEX

55
INFERENCE:

From the above chart we can understand that the returns Nifty Bees are similar
to its benchmark S&P CNX Nifty. It is also found that there is high volatility in
returns and the returns are not consistent. There is sleep decline in returns 19 th
December and high returns in 26th December.

TABLE NO :12
WEEKLY RETURNS OF NIFTY JUNIOR BEES AND CNX NIFTY JUNIOR
INDEX
Date NAV Nifty Junior CNX Nifty CNX Nifty

56
 Bees Return % Junior Index Junior Index
Return %
01-Aug-07 85.9491 8427.05
08-Aug-07 90.1769 4.9190 8844.00 4.9478
14-Aug-07 87.2401 -3.2567 8556.30 -3.2531
22-Aug-07 80.9007 -7.2666 7932.05 -7.2958
29-Aug-07 86.2353 6.5940 8454.85 6.5910
05-Sep-07 89.8583 4.2013 8813.40 4.2408
12-Sep-07 91.0083 1.2798 8924.45 1.2600
19-Sep-07 94.5806 3.9252 9277.45 3.9554
26-Sep-07 98.3031 3.9358 9645.60 3.9682
03-Oct-07 102.9136 4.6901 10102.65 4.7384
10-Oct-07 102.2342 -0.6602 10032.75 -0.6919
17-Oct-07 101.0542 -1.1542 9923.00 -1.0939
24-Oct-07 100.6831 -0.3672 9888.40 -0.3487
31-Oct-07 108.3568 7.6216 10643.30 7.6342
07-Nov-07 106.1882 -2.0014 10431.25 -1.9923
14-Nov-07 110.4189 3.9842 10850.40 4.0182
21-Nov-07 109.9072 -0.4634 10802.25 -0.4438
28-Nov-07 113.2891 3.0771 11138.05 3.1086
05-Dec-07 122.1668 7.8363 12015.80 7.8806
12-Dec-07 123.8418 1.3711 12189.95 1.4493
19-Dec-07 118.5475 -4.2751 11669.70 -4.2679
26-Dec-07 124.2906 4.8446 12239.35 4.8814

GRAPH NO :12

WEEKLY RETURNS OF NIFTY JUNIOR BEES AND CNX NIFTY JUNIOR

INDEX

57
INFERENCE:

Weekly returns of Nifty Junior Bees are similar to its benchmark index CNX
Nifty Junior. There are huge differences in the returns weekly. It is also found
that there are huge decline returns in 22 August and high returns in 5
December.

TABLE NO : 13
WEEKLY RETURNS OF BANK BEES AND CNX BANKING INDEX
Date NAV Bank Bees CNX CNX Banking
Return % Banking Index Return
Index %
01-Aug-07 671.6745 6637.35
08-Aug-07 704.558 4.8957 6966.8 4.9636
14-Aug-07 678.0411 -3.7636 6702.35 -3.7959
22-Aug-07 628.729 -7.2727 6210.45 -7.3392
29-Aug-07 656.1677 4.3642 6485.71 4.4322

58
 05-Sep-07 685.3118 4.4416 6777.65 5.4264
12-Sep-07 680.9203 -0.6408 6784.4 0.0996
19-Sep-07 742.5991 9.0582 7401.85 9.1010
26-Sep-07 777.9321 4.7580 7755.9 4.7833
03-Oct-07 812.0565 4.3866 8097.9 4.4095
10-Oct-07 805.2657 -0.8362 8030.65 -0.8305
17-Oct-07 812.1013 0.8489 8099.9 0.8623
24-Oct-07 824.9093 1.5771 8228.65 1.5895
31-Oct-07 903.2836 9.5010 9013.15 9.5338
07-Nov-07 910.9111 0.8444 9090.2 0.8549
14-Nov-07 963.1174 5.7312 9613.05 5.7518
21-Nov-07 884.7085 -8.1412 8829.8 -8.1478
28-Nov-07 898.7847 1.5911 8970.85 1.5974
05-Dec-07 959.744 6.7824 9581.3 6.8018
12-Dec-07 1007.1888 4.9435 10056.7 4.9647
19-Dec-07 925.4591 -8.1146 9240.35 -8.1175
26-Dec-07 976.8553 5.5536 9755.2 5.5718

GRAPH NO :13

WEEKLY RETURNS OF BANK BEES AND CNX BANKING INDEX

INFERENCE:

59
The above chart shows that the returns of Bank Bees and its benchmark index
are moving with correlation. But there is slight difference in the month of
September. It is also inferred that a sleep decline in November returns.

TABLE NO:14
WEEKLY RETURNS OF ICICI PRU SPICE AND SENSEX
Date NAV Spice Sensex Sensex
Return Return %
%
01-Aug-07 153.561 14,935.77
08-Aug-07 157.384 2.4896 15,307.98 2.4921
14-Aug-07 154.318 -1.9481 15,000.91 -2.0059
22-Aug-07 146.814 -4.8627 14,248.66 -5.0147
29-Aug-07 154.272 5.0799 14,993.04 5.2242
05-Sep-07 158.803 2.9370 15,446.15 3.0221
12-Sep-07 159.464 0.4162 15,505.36 0.3833
19-Sep-07 167.596 5.0996 16,322.75 5.2717
26-Sep-07 173.551 3.5532 16,921.39 3.6675
03-Oct-07 182.769 5.3114 17,847.04 5.4703
10-Oct-07 190.840 4.4160 18,658.25 4.5453
17-Oct-07 191.397 0.2919 18,715.82 0.3085
24-Oct-07 189.410 -1.0382 18,512.91 -1.0842
31-Oct-07 202.597 6.9621 19,837.99 7.1576
07-Nov-07 197.175 -2.6762 19,289.83 -2.7630
14-Nov-07 203.525 3.2205 19,929.06 3.3167
21-Nov-07 190.231 -6.5319 18,602.62 -6.6558
28-Nov-07 193.723 1.8357 18,938.87 1.8129

60
 05-Dec-07 201.539 4.0346 19,738.07 4.2199
12-Dec-07 207.809 3.1110 20,375.87 3.2313
19-Dec-07 195.116 -6.1080 19,091.96 -6.3011
26-Dec-07 206.063 5.6105 20,192.52 5.7645

GRAPH NO : 14

WEEKLY RETURNS OF ICICI PRU SPICE AND SENSEX

INFERENCE:

From the chart we can understand that the weekly returns of ICICI Prudential
Spice are similar to its benchmark index Sensex. It is also found that there is
high volatility in returns and the returns in the month of October are always
maintained positive.

61
TABLE NO :15
WEEKLY RETURNS OF UTI SUNDER AND S&P CNX NIFTY INDEX
Date NAV UTI S&P CNX S&P CNX
SUNDER Nifty Index Nifty Index
Return % Return %
01-Aug-07 446.240 4345.85
08-Aug-07 458.481 2.7429 4462.10 2.6750
14-Aug-07 449.083 -2.0498 4370.20 -2.0596
22-Aug-07 426.972 -4.9236 4153.15 -4.9666
29-Aug-07 448.076 4.9427 4359.30 4.9637
05-Sep-07 460.048 2.6719 4475.85 2.6736
12-Sep-07 462.695 0.5754 4496.85 0.4692
19-Sep-07 486.684 5.1846 4732.35 5.2370
26-Sep-07 507.695 4.3172 4940.50 4.3984
03-Oct-07 535.128 5.4034 5210.80 5.4711
10-Oct-07 558.278 4.3261 5441.45 4.4264
17-Oct-07 570.088 2.1154 5559.30 2.1658
24-Oct-07 563.745 -1.1128 5496.15 -1.1359
31-Oct-07 605.731 7.4477 5900.65 7.3597
07-Nov-07 593.635 -1.9969 5782.35 -2.0049
14-Nov-07 609.487 2.6703 5937.90 2.6901
21-Nov-07 570.754 -6.3550 5561.05 -6.3465
28-Nov-07 576.450 0.9980 5617.55 1.0160
05-Dec-07 609.291 5.6971 5940.00 5.7400
12-Dec-07 631.713 3.6800 6159.30 3.6919
19-Dec-07 590.029 -6.5986 5751.15 -6.6266
26-Dec-07 623.331 5.6441 6070.75 5.5571

62
GRAPH NO :15

WEEKLY RETURNS OF UTI SUNDER AND S&P CNX NIFTY INDEX

INFERENCE:

The above chart shows that the returns of UTI SUNDER and its benchmark
index S&P CNX Nifty Index are moving with perfect correlation. But there is
marginal decrease in December and the September returns are positive
throughout the month up to 24th October.

63
 TABLE NO : 16
COMPARATIVE WEEKLY RETURN ANALYSIS OF ETFS
Date Nifty Bees Nifty Junior Bank Bees Spice UTI
Return % Bees Return % Return % SUNDER
Return % Return %
01-Aug-07
08-Aug-07 2.7453 4.9190 4.8957 2.4896 2.7429
14-Aug-07 -2.0605 -3.2567 -3.7636 -1.9481 -2.0498
22-Aug-07 -4.9270 -7.2666 -7.2727 -4.8627 -4.9236
29-Aug-07 4.9409 6.5940 4.3642 5.0799 4.9427
05-Sep-07 2.6833 4.2013 4.4416 2.9370 2.6719
12-Sep-07 0.5764 1.2798 -0.6408 0.4162 0.5754
19-Sep-07 5.2157 3.9252 9.0582 5.0996 5.1846
26-Sep-07 4.3175 3.9358 4.7580 3.5532 4.3172
03-Oct-07 5.4355 4.6901 4.3866 5.3114 5.4034
10-Oct-07 4.3866 -0.6602 -0.8362 4.4160 4.3261
17-Oct-07 2.1489 -1.1542 0.8489 0.2919 2.1154
24-Oct-07 -1.1181 -0.3672 1.5771 -1.0382 -1.1128
31-Oct-07 7.3085 7.6216 9.5010 6.9621 7.4477
07-Nov-07 -1.9853 -2.0014 0.8444 -2.6762 -1.9969
14-Nov-07 2.6707 3.9842 5.7312 3.2205 2.6703
21-Nov-07 -6.3343 -0.4634 -8.1412 -6.5319 -6.3550
28-Nov-07 1.0028 3.0771 1.5911 1.8357 0.9980
05-Dec-07 5.7143 7.8363 6.7824 4.0346 5.6971
12-Dec-07 3.6464 1.3711 4.9435 3.1110 3.6800
19-Dec-07 -6.6089 -4.2751 -8.1146 -6.1080 -6.5986
26-Dec-07 5.6465 4.8446 5.5536 5.6105 5.6441

GRAPH NO : 16

COMPARATIVE WEEKLY RETURN ANALYSIS OF ETFS

64
INFERENCE:

The above chart shows that Bank Bees have high returns. But Bank Bees
returns is always fluctuating compared to other funds. Hence, it is inferred that
Bank Bees providing the opportunity of high risk and return to the investors.

TRACKING ERROR

65
Tracking Error is calculated to describe the volatility of the returns of the ETFs
relative to the returns of its benchmark index. Tracking Error is expressed in
terms of the Standard Deviation between the weekly returns of the fund and the
index.

Annualized tracking error =(Standard Deviation of the differences

between weekly returns of the Fund and the index * square root of the no.
of weeks)

TABLE NO : 17
TRACKING ERROR OF NIFTY BEES
Date Nifty Bees S&P CNX Nifty Difference in X-Xm (X-
Return % Index Return % Return X Xm)^2

66
 01-Aug-07
08-Aug-07 2.7453 2.6750 0.0703 0.0600 0.0036
14-Aug-07 -2.0605 -2.0596 -0.0009 -0.0112 0.0001
22-Aug-07 -4.9270 -4.9666 0.0396 0.0293 0.0009
29-Aug-07 4.9409 4.9637 0.0228 -0.0331 0.0011
05-Sep-07 2.6833 2.6736 0.0097 -0.0006 0.0000
12-Sep-07 0.5764 0.4692 0.1072 0.0969 0.0094
19-Sep-07 5.2157 5.2370 -0.0213 -0.0316 0.0010
26-Sep-07 4.3175 4.3984 -0.0809 -0.0912 0.0083
03-Oct-07 5.4355 5.4711 -0.0356 -0.0459 0.0021
10-Oct-07 4.3866 4.4264 -0.0398 -0.0501 0.0025
17-Oct-07 2.1489 2.1658 -0.0169 -0.0272 0.0007
24-Oct-07 -1.1181 -1.1359 0.0178 0.0075 0.0001
31-Oct-07 7.3085 7.3597 -0.0512 -0.0615 0.0038
07-Nov-07 -1.9853 -2.0049 0.0196 0.0093 0.0001
14-Nov-07 2.6707 2.6901 -0.0194 -0.0297 0.0009
21-Nov-07 -6.3343 -6.3465 0.0122 0.0019 0.0000
28-Nov-07 1.0028 1.0160 -0.0132 -0.0235 0.0006
05-Dec-07 5.7143 5.7400 -0.0257 -0.0360 0.0013
12-Dec-07 3.6464 3.6919 -0.0455 -0.0558 0.0031
19-Dec-07 -6.6089 -6.6266 0.0177 0.0074 0.0001
26-Dec-07 5.6465 5.5571 0.0894 0.0791 0.0063
Total 0.0103 -0.2060 0.0458

n = 21
Xm = 0.000490476
21^ = 4.5826

TRACKING ERROR = 0.2099

TABLE NO : 18
TRACKING ERROR OF NIFTY JUNIOR BEES
Date Nifty Junior Bees CNX Nifty Junior Difference in X-Xm (X-
Return % Index Return % Return X Xm)^2
01-Aug-07
08-Aug-07 4.9190 4.9478 -0.0288 -0.0073 0.0001
14-Aug-07 -3.2567 -3.2531 -0.0036 0.0179 0.0003
22-Aug-07 -7.2666 -7.2958 0.0292 0.0507 0.0026
29-Aug-07 6.5940 6.5910 0.003 0.0245 0.0006
05-Sep-07 4.2013 4.2408 -0.0395 -0.0180 0.0003
12-Sep-07 1.2798 1.2600 0.0198 0.0413 0.0017
19-Sep-07 3.9252 3.9554 -0.0302 -0.0087 0.0001
26-Sep-07 3.9358 3.9682 -0.0324 -0.0109 0.0001
03-Oct-07 4.6901 4.7384 -0.0483 -0.0268 0.0007
10-Oct-07 -0.6602 -0.6919 0.0317 0.0532 0.0028
17-Oct-07 -1.1542 -1.0939 -0.0603 -0.0388 0.0015

67
 24-Oct-07 -0.3672 -0.3487 -0.0185 0.0030 0.0000
31-Oct-07 7.6216 7.6342 -0.0126 0.0089 0.0001
07-Nov-07 -2.0014 -1.9923 -0.0091 0.0124 0.0002
14-Nov-07 3.9842 4.0182 -0.034 -0.0125 0.0002
21-Nov-07 -0.4634 -0.4438 -0.0196 0.0019 0.0000
28-Nov-07 3.0771 3.1086 -0.0315 -0.0100 0.0001
05-Dec-07 7.8363 7.8806 -0.0443 -0.0228 0.0005
12-Dec-07 1.3711 1.4493 -0.0782 -0.0567 0.0032
19-Dec-07 -4.2751 -4.2679 -0.0072 0.0143 0.0002
26-Dec-07 4.8446 4.8814 -0.0368 -0.0153 0.0002
Total -0.4512 0.0155

n = 21
Xm = -0.021485714
21^ = 4.5826

TRACKING ERROR = 0.0710

TABLE NO : 19
TRACKING ERROR OF BANK BEES
Date Bank Bees Return CNX Banking Difference in X-Xm (X-
% Index Return % Return X Xm)^2
01-Aug-07
08-Aug-07 4.8957 4.9636 -0.0679 0.0275 0.0008
14-Aug-07 -3.7636 -3.7959 0.0323 0.1277 0.0163
22-Aug-07 -7.2727 -7.3392 0.0665 0.1619 0.0262
29-Aug-07 4.3642 4.4322 -0.0680 0.0274 0.0008
05-Sep-07 4.4416 5.4264 -0.9848 -0.8894 0.7910
12-Sep-07 -0.6408 0.0996 -0.7404 -0.6450 0.4160
19-Sep-07 9.0582 9.1010 -0.0428 0.0526 0.0028
26-Sep-07 4.7580 4.7833 -0.0253 0.0701 0.0049
03-Oct-07 4.3866 4.4095 -0.0229 0.0725 0.0053
10-Oct-07 -0.8362 -0.8305 -0.0057 0.0897 0.0081
17-Oct-07 0.8489 0.8623 -0.0134 0.0820 0.0067
24-Oct-07 1.5771 1.5895 -0.0124 0.0830 0.0069
31-Oct-07 9.5010 9.5338 -0.0328 0.0626 0.0039
07-Nov-07 0.8444 0.8549 -0.0105 0.0849 0.0072
14-Nov-07 5.7312 5.7518 -0.0206 0.0748 0.0056
21-Nov-07 -8.1412 -8.1478 0.0066 0.1020 0.0104
28-Nov-07 1.5911 1.5974 -0.0063 0.0891 0.0079
05-Dec-07 6.7824 6.8018 -0.0194 0.0760 0.0058
12-Dec-07 4.9435 4.9647 -0.0212 0.0742 0.0055
19-Dec-07 -8.1146 -8.1175 0.0029 0.0983 0.0097
26-Dec-07 5.5536 5.5718 -0.0182 0.0772 0.0060
Total -2.0043 -1.9089 1.3476

68
n = 21
Xm =-0.095442857
21^ = 4.5826

TRACKING ERROR = 6.1755

TABLE NO : 20
TRACKING ERROR OF UTI SUNDER
Date UTI SUNDER S&P CNX Nifty Difference in X-Xm (X-
Return % Index Return % Return X Xm)^2
01-Aug-07
08-Aug-07 2.7429 2.6750 0.0679 0.0686 0.0047
14-Aug-07 -2.0498 -2.0596 0.0098 0.0105 0.0001
22-Aug-07 -4.9236 -4.9666 0.0430 0.0437 0.0019
29-Aug-07 4.9427 4.9637 -0.0210 -0.0203 0.0004
05-Sep-07 2.6719 2.6736 -0.0017 -0.0010 0.0000
12-Sep-07 0.5754 0.4692 0.1062 0.1069 0.0114
19-Sep-07 5.1846 5.2370 -0.0524 -0.0517 0.0027
26-Sep-07 4.3172 4.3984 -0.0812 -0.0805 0.0065
03-Oct-07 5.4034 5.4711 -0.0677 -0.0670 0.0045
10-Oct-07 4.3261 4.4264 -0.1003 -0.0996 0.0099
17-Oct-07 2.1154 2.1658 -0.0504 -0.0497 0.0025
24-Oct-07 -1.1128 -1.1359 0.0231 0.0238 0.0006
31-Oct-07 7.4477 7.3597 0.0880 0.0887 0.0079
07-Nov-07 -1.9969 -2.0049 0.0080 0.0087 0.0001
14-Nov-07 2.6703 2.6901 -0.0198 -0.0191 0.0004
21-Nov-07 -6.3550 -6.3465 -0.0085 -0.0078 0.0001
28-Nov-07 0.9980 1.0160 -0.0180 -0.0173 0.0003
05-Dec-07 5.6971 5.7400 -0.0429 -0.0422 0.001
12-Dec-07 3.6800 3.6919 -0.0119 -0.0112 0.0001
19-Dec-07 -6.5986 -6.6266 0.0280 0.0287 0.0008
26-Dec-07 5.6441 5.5571 0.0870 0.0877 0.0077
Total -0.0155 0.0643

n = 21
Xm = -0.0007
21^ = 4.5826

TRACKING ERROR = 0.2947

69
TABLE NO : 21
TRACKING ERROR OF ICICI PRUDENTIAL SPICE
Date Spice Return % Sensex Return % Difference in X-Xm (X-Xm)^2
Return X
01-Aug-07
08-Aug-07 2.4896 2.4921 -0.0025 0.0756 0.0057
14-Aug-07 -1.9481 -2.0059 0.0578 0.1359 0.0185
22-Aug-07 -4.8627 -5.0147 0.1520 0.2301 0.0529
29-Aug-07 5.0799 5.2242 -0.1443 -0.0662 0.0044
05-Sep-07 2.9370 3.0221 -0.0851 -0.0070 0.0000
12-Sep-07 0.4162 0.3833 0.0329 0.1110 0.0123
19-Sep-07 5.0996 .0.0534 -0.1721 -0.0940 0.0088
26-Sep-07 3.5532 3.6675 -0.1143 -0.0362 0.0013
03-Oct-07 5.3114 5.4703 -0.1589 -0.0808 0.0065
10-Oct-07 4.4160 4.5453 -0.1293 -0.0512 0.0026
17-Oct-07 0.2919 0.3085 -0.0166 0.0615 0.0038
24-Oct-07 -1.0382 -1.0842 0.0460 0.1241 0.0154
31-Oct-07 6.9621 7.1576 -0.1955 -0.1174 0.0138
07-Nov-07 -2.6762 -2.7630 0.0868 0.1649 0.0272
14-Nov-07 3.2205 3.3167 -0.0962 -0.0181 0.0003
21-Nov-07 -6.5319 -6.6558 0.1239 0.2020 0.0408
28-Nov-07 1.8357 1.8129 0.0228 0.1009 0.0102
05-Dec-07 4.0346 4.2199 -0.1853 -0.1072 0.0115
12-Dec-07 3.1110 3.2313 -0.1203 -0.0422 0.0018
19-Dec-07 19,091.96 -6.3011 0.1931 0.2712 0.0735
26-Dec-07 20,192.52 5.7645 -0.1540 -0.0759 0.0058
Total -0.8591 0.3172

n = 21
Xm = -0.0781
21^ = 4.5826

TRACKING ERROR = 1.4536

TABLE NO : 22
TRACKING ERROR OF ETFs
Funds Tracking Error

NIFTY BEES 0.2099

70
NIFTY JUNIOR BEES 0.0710
BANK BEES 6.1755
UTI SUNDER 0.2947
ICICI PRUDENTIAL SPICE 1.4536

GRAPH NO :17
TRACKING ERROR OF ETFs

INFERENCE:

From the above chart we can found that Nifty Junior Bees has less tracking
error compared to other ETFs.The Bank Bees has high tracking error of
6.1755. Hence it is inferred that Nifty Junior Bees has tracking its underlying
benchmark perfectly.

71
 FINDINGS,
SUGGESTION &
CONCLUSION

CHAPTER 5

FINDINGS,SUGGESTION& CONCLUSION

5.1 FINDINGS OF THE STUDY

72
 1. The study shows that weekly returns are symmetric with its benchmark
returns. The returns are highly volatile for all.

2. Comparative return analysis shows that Nifty Junior Bees have more
consistent returns than other funds.

3. Tracking error of ETFs has declined. All funds have very low tracking
error.

4. Nifty Bees has tracking its benchmark perfectly. So it has less tracking
error compared to other funds.

5. The Bank Bees shows high tracking error compared to other funds.

5.2 SUGGESTIONS OF THE STUDY

1. ETF is a new financial instrument, so investors do not opt for them

because lack of awareness. It is very essential to bring awareness
programs to investors in a potential market like India.

73
 2. The stock Exchanges should consider ETF is a new financial product
and undertake promotional and advertising campaigns to popularize the
instrument present in the market.
3. An ETF is created through an Initial Public Offering (IPO) by the Asset
Management Company (AMC) in which only Authorized Participants
(Aps) i.e. institutional investors, mutual funds, insurance companies, etc
are allowed to participate.
4. The investors who would like to take less risk, ETFs are recommended.
5. To reduce the size of creation unit for example in case of UTI SUNDER
the creation unit size is so heavy that only institutional investors can
buy/sell the ETF units.
Creation unit size of UTI SUNDER (10,000 units plus multiples of
2,000 units in case of "Authorized Participants" and 500,000 units
plus multiples of 20,000 units for other investors).

With the above solution, the ETF industry can market itself aggressively as a
very attractive investment scheme.

5.3 CONCLUSION OF THE STUDY

In India, ETFs are being a new instrument possessing the attributes of

both index mutual fund and an individual stock. They are traded subject to the
same market rules of demand and supply and investors can buy/sell ETFs units
at intra day prices, not just as days closing values.
The strategies that were used for the analysis are Performance analysis,
Return analysis & Tracking error analysis. As far as their weekly return analysis
Nifty Junior Bees have more consistent returns compared to other ETFs. The
ETFs are performing very well with its benchmark index
The ETF market provides so many advantages like
liquidity, less risk good return and flexibility in operation etc. ETFs offer the
ability to be traded real-time like a stock, accessibility to investors with
brokerage accounts and the transparency of the investment instrument. ETFs

74
can also be more tax efficient and cost efficient compared to a traditional
mutual fund.
The main drawbacks of the ETFs are lack of popularity. Thus, there is
need to popularize this excellent cash management tool among the individual
investors and retail investors. The creation unit size of ETFs is so heavy that
only institutional investors can buy/sell the ETF units. Therefore, it is very
essential to reduce the size of creation unit.

5.4 APPENDIX

WEEKLY RETURNS OF NIFTY BEES AND S&P CNX NIFTY INDEX

Date NAV S&P CNX
Nifty Index
01-Aug-07 439.4082 4345.85
08-Aug-07 451.4713 4462.10

75
 14-Aug-07 442.1688 4370.20
22-Aug-07 420.3832 4153.15
29-Aug-07 441.1540 4359.30
05-Sep-07 452.9916 4475.85
12-Sep-07 455.6028 4496.85
19-Sep-07 479.3658 4732.35
26-Sep-07 500.0623 4940.50
03-Oct-07 527.2433 5210.80
10-Oct-07 550.3712 5441.45
17-Oct-07 562.1980 5559.30
24-Oct-07 555.9121 5496.15
31-Oct-07 596.5407 5900.65
07-Nov-07 584.6974 5782.35
14-Nov-07 600.3131 5937.90
21-Nov-07 562.2877 5561.05
28-Nov-07 567.9264 5617.55
05-Dec-07 600.3792 5940.00
12-Dec-07 622.2714 6159.30
19-Dec-07 581.1463 5751.15
26-Dec-07 613.9607 6070.75

WEEKLY RETURNS OF NIFTY JUNIOR BEES AND CNX NIFTY JUNIOR

INDEX
Date NAV CNX Nifty
Junior
Index
01-Aug-07 85.9491 8427.05
08-Aug-07 90.1769 8844.00
14-Aug-07 87.2401 8556.30
22-Aug-07 80.9007 7932.05
29-Aug-07 86.2353 8454.85
05-Sep-07 89.8583 8813.40
12-Sep-07 91.0083 8924.45
19-Sep-07 94.5806 9277.45
26-Sep-07 98.3031 9645.60
03-Oct-07 102.9136 10102.65
10-Oct-07 102.2342 10032.75
17-Oct-07 101.0542 9923.00
24-Oct-07 100.6831 9888.40
31-Oct-07 108.3568 10643.30

76
 07-Nov-07 106.1882 10431.25
14-Nov-07 110.4189 10850.40
21-Nov-07 109.9072 10802.25
28-Nov-07 113.2891 11138.05
05-Dec-07 122.1668 12015.80
12-Dec-07 123.8418 12189.95
19-Dec-07 118.5475 11669.70
26-Dec-07 124.2906 12239.35

WEEKLY RETURNS OF BANK BEES AND CNX BANKING INDEX

Date NAV CNX
Banking
Index
01-Aug-07 671.6745 6637.35
08-Aug-07 704.558 6966.8
14-Aug-07 678.0411 6702.35
22-Aug-07 628.729 6210.45
29-Aug-07 656.1677 6485.71
05-Sep-07 685.3118 6777.65
12-Sep-07 680.9203 6784.4
19-Sep-07 742.5991 7401.85
26-Sep-07 777.9321 7755.9
03-Oct-07 812.0565 8097.9
10-Oct-07 805.2657 8030.65
17-Oct-07 812.1013 8099.9
24-Oct-07 824.9093 8228.65
31-Oct-07 903.2836 9013.15
07-Nov-07 910.9111 9090.2
14-Nov-07 963.1174 9613.05
21-Nov-07 884.7085 8829.8
28-Nov-07 898.7847 8970.85
05-Dec-07 959.744 9581.3
12-Dec-07 1007.1888 10056.7
19-Dec-07 925.4591 9240.35
26-Dec-07 976.8553 9755.2

77
WEEKLY RETURNS OF ICICI PRU SPICE AND SENSEX
Date NAV Sensex
01-Aug-07 153.561 14,935.77
08-Aug-07 157.384 15,307.98
14-Aug-07 154.318 15,000.91
22-Aug-07 146.814 14,248.66
29-Aug-07 154.272 14,993.04
05-Sep-07 158.803 15,446.15
12-Sep-07 159.464 15,505.36
19-Sep-07 167.596 16,322.75
26-Sep-07 173.551 16,921.39
03-Oct-07 182.769 17,847.04
10-Oct-07 190.840 18,658.25
17-Oct-07 191.397 18,715.82
24-Oct-07 189.410 18,512.91
31-Oct-07 202.597 19,837.99
07-Nov-07 197.175 19,289.83
14-Nov-07 203.525 19,929.06
21-Nov-07 190.231 18,602.62
28-Nov-07 193.723 18,938.87
05-Dec-07 201.539 19,738.07
12-Dec-07 207.809 20,375.87
19-Dec-07 195.116 19,091.96
26-Dec-07 206.063 20,192.52

WEEKLY RETURNS OF UTI SUNDER AND S&P CNX NIFTY INDEX

Date NAV S&P CNX
Nifty Index
01-Aug-07 446.240 4345.85
08-Aug-07 458.481 4462.10

78
 14-Aug-07 449.083 4370.20
22-Aug-07 426.972 4153.15
29-Aug-07 448.076 4359.30
05-Sep-07 460.048 4475.85
12-Sep-07 462.695 4496.85
19-Sep-07 486.684 4732.35
26-Sep-07 507.695 4940.50
03-Oct-07 535.128 5210.80
10-Oct-07 558.278 5441.45
17-Oct-07 570.088 5559.30
24-Oct-07 563.745 5496.15
31-Oct-07 605.731 5900.65
07-Nov-07 593.635 5782.35
14-Nov-07 609.487 5937.90
21-Nov-07 570.754 5561.05
28-Nov-07 576.450 5617.55
05-Dec-07 609.291 5940.00
12-Dec-07 631.713 6159.30
19-Dec-07 590.029 5751.15
26-Dec-07 623.331 6070.75

BIBLIOGRAPHY

BOOKS:
Pandian, Punithavathy:
Security Analysis and portfolio Management, Vikas
Publishing House Pvt Ltd., New Delhi

Kothari C.R :
Research Methodology, 2nd Edition, Wishwa
Prakashan, New Delhi
JOURNALS:

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1. The Economic Times
2. Business Line, The Hindu
3. Robert V Roosa, Coping With Short-Term Money Flows, The Banker
London,September 1971.P.995.

WEBSITES:
www.etfdigest,.com
www.valuesnote.com
www.bseindia.com
www.nseindia.com
www.amex.com
www.nasdaq.com
www.benchmarkfunds.com
www.pruicici.com
www.utimf.com
www.mutualfundsindia.com
www.streetauthority.com

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