FIM Group Assignment

(Mutual Funds)
 Equity Fund An equity fund is a type of mutual fund basically in the form of publicly
traded common stock. Equity fund or equity oriented fund major part of the fund is invested
in equities. Typically 70%-80% of the fund is invested in Equity and maximum 35% of the
fund is invested in debt. As major part of the fund is invested in equity it is called equity
oriented fund. And also depending the clients requirements we decide where to invest in
equity fund or debt fund. If client is aggressive investor we invest in equity oriented funds. If
he is a moderate investor we invest in equity and debt and if he is a conservative investor we
invest entire amount in debt.

There are also some equity funds which focuses on indices like large cap Equity fund,
Midcap Equity fund and Small cap Equity fund.

Large Cap Equity Funds are those that invest in companies with a large market capitalization.
Mid Cap Equity Funds are those that invest in companies with a medium market capitalization.
Small Cap Equity Funds are those that invest in companies with a small market capitalization.

Some Highly rated Large cap Equity Funds

Fund Name Crisil Rank Asset Size NAV 1 Month 3 Month 6 Months 1 Year 2 Year 3 Year

Rank 1
CICI Pru Top 100 Fund (G) 1,546.32 302.93 1.0 2.0 13.7 21.0 14.5 12.8

Kotak Select Focus Fund - Rank 1

6,335.80 31.04 0.7 5.6 19.8 24.1 15.9 21.0
Regular (G)

Rank 1
SBI Blue Chip Fund (G) 8,582.51 35.68 0.7 5.1 15.9 15.9 11.4 17.1

CICI Pru Top 100 Fund (G) Portfolio Equity 95.33

Asset allocation Others 0.00

Sector %
Debt 0.00
Banking/Finance 20.59
Mutual Funds N.A
Technology 8.92
Money Market 2.21
Metals & Mining 7.90
Cash / Call 2.46
Utilities 7.85
Telecom 7.03
Automotive 6.82
 Debt Fund - Debt Mutual Funds mainly invest in a mix of debt or fixed income securities
such as Treasury Bills, Government Securities, Corporate Bonds, Money Market instruments
and other debt securities of different time horizons. Generally, debt securities have a fixed
maturity date and pay a fixed rate of interest. Typically Debt mutual fund comprises of
Interest income and Capital appreciation. When choosing debt securities we usually see credit
rating SEBI has mandated to get credit rating for any company that issuing debt.

Credit rating tells the ability of the issuer of the

securities or bonds to pay back their debt, over a certain Asset Allocation
period of time. These ratings are issued by independent
Equity 0.00
rating organisations such as CARE, CRISIL, FITCH,
Brickwork and ICRA. Others 0.00

Debts funds are known for Income oriented since it Debt 77.18

give fixed rate of coupon or interest over a period of Mutual Funds N.A
time these funds are often called as income oriented
Money Market 17.71
funds those who are risk averse choose debt fund as in
debt funds risk is very low. (As if company were to be Cash / Call 5.11

liquidated debt holder will stand first to be paid). Debt

funds are safer investments and gives less returns comparatively Equity funds. If an investor
is conservative debt funds are good for him.

Some highly rated Debt Funds

Fund Name Crisil Rank Asset Size NAV 1 Month 3 Month 6 Months 1 Year 2 Year 3 Year

Can Robeco Dynamic Bond-RP Rank 1

270.42 19.50 0.1 3.3 3.2 13.5 10.9 11.2
(G)

Rank 1
UTI Bond Fund (G) 1,115.08 51.51 0.3 3.5 3.3 13.3 10.8 11.1

Rank 1
DFC SSIF - MTP - Regular (G) 2,086.34 28.32 0.5 2.1 3.3 9.0 8.7 9.2

Rank 1
LIC Income Plus Fund (G) 131.95 20.92 0.5 1.8 3.3 7.6 7.3 7.1
 Index Funds Investing in an index fund is a form of passive investing. The primary
advantage to this strategy is the lower management expense ratio on an index fund. Index
funds are a popular way to participate in the stock market and diversify a portfolio. When an
investor purchases a share of an index fund, he or she is purchasing a share of a portfolio that
contains the securities in an underlying index. The index fund holds the securities in the same
proportion as they occur in the actual index, and when the index decreases in value,
the fund's shares decrease as well, and vice versa

Usually, normal funds can be bought and sold only at the net asset value (NAV) declared at
the end of the day. But in case of index funds that are traded on exchanges, one can buy and
sell anytime of the day at real time NAV. This way, one can take the price advantage not
available in no exchange traded funds.

In index Funds with limited role of fund managers, the fund management charges are also
lower in index funds as a result of which the expense ratio is lower than that of actively
managed funds.

Some highly rated ETFs

Crisil 5 Year
Fund Name Asset Size NAV 1M 3M 6 M 1 Year 2 Year 3 Year
Rank

Kotak Nifty ETF Rank 1 608.04 985.75 1.5 6.4 16.3 15.5 9.5 10.9 15.0

UTI Nifty Index Fund - Direct 63.05

Rank 2 290.83 1.5 6.4 17.3 16.5 9.2 10.4 --
(G)

UTI Nifty Index Fund (G) Rank 2 144.87 62.62 1.5 6.4 17.3 16.4 9.1 10.3 13.6

Reliance ETF Nifty BeES Rank 2 935.56 1,004.67 1.5 6.4 17.5 16.5 9.1 10.1 13.7
Real Estate Mutual Funds invest in real estate either in the form of physical property or in
the form of securities of companies engaged in the real estate business. SEBIs regulations
require that at least 35% of the portfolio should be held in physical assets. Securities that these
funds can invest in include mortgage-backed securities and debt issuances of companies
engaged in real estate projects. Not less than 75% of the net assets of the scheme shall be in
physical assets and such securities. Assets held by the fund will be valued every 90 days by
two valuers accredited by a credit rating agency. The lower of the two values will be taken to
calculate the NAV. These funds are closed-end funds and have to be listed on a stock exchange.

Principal Global Opportunities Fund - Direct Plan (G)

Absolute Returns (in %)

Year Qtr 1 Qtr 2 Qtr 3 Qtr 4 Annual
jj
2017 5.9 5.9 - - -
2016 5.3 2.6 7.4 -3.1 12.6
2015 1.7 1.6 -13.9 -0.2 -9.5
2014 -5.1 5.2 -1.2 -1.8 -1.6
2013 -4.6 -2.3 9.8 1.2 2.7