(Approved by AICTE (Govt.

Of India), New Delhi) For partial fulfillment of Post Graduate Diploma in Management A STUDY ON RETURNS ANALYSIS OF AXIS MUTUAL FUNDS WITH OTHER MARKET LEADER FUNDS AND WITH RESPECT TO THEIR BENCHMARK

Research Guide
Dr. (Prof.) A.S. Khalsa Dean and Faculty of Finance IPER PGDM

Submitted By
GAURAV SAWLANI Trimester- III IPER PGDM Roll no.-15

ACKNOWLEDGEMENT

I wish to express my gratitude to those who, helped me in accomplishing this challenging project on A STUDY ON RETURNS ANALYSIS OF AXIS MUTUAL FUND WITH OTHER MARKET LEADER FUNDS AND WITH RESPECT TO THEIR BENCHMARK No amount of written expression can show my deepest sense of gratitude to my Research guide Prof (Dr.) A.S.KHALSA (Dean and faculty of finance), & ABHISHEK JAIN SIR who motivated me to receive enormous amount of input and inspiration at the various stages during my project preparation and assisted me in bringing out my project in the present form. I thankfully acknowledge an active support by my project guide who overwhelmingly shared his knowledge with me and strengthened my conceptual framework. I am also thankful to all the finance faculties of IPER PGDM, Bhopal who supported me in various ways and enlightened me about the valuable information pertaining to my research work

CONTENT CHAPTER-1:
CONCEPTUAL OVERVIEW INTRODUCTION

CHAPTER-2:
RESEARCH METHODOLOGY 2.1) OBJECTVE OF THE STUDY 2.2) METHODOLOGY 2.3) SIGNIFICANCE OF STUDY 2.4) LIMITATIONS

CHAPTER-3:
THEORITICAL BACKGROUND

CHAPTER-4:
CASE STUDY - : INTRODUCTION TO FUND HOUSES 4.1) EQUITY FUNDS (AXIS,HDFC TOP 200,RELIANCE GROWTH,BIRLA SUN LIFE) 4.2) INCOME FUND (AXIS,HDFC MIP,BIRLA MIP,RELIANCE MIP) 4.3) TAX SAVER FUND (AXIS,HDFC,ICICI,FRANKLIN) 4.4) HYPRID FUND ( AXIS TRIPLE ADVANTAGE,CANARA)

CHAPTER -5:
ANALYSIS OF DATA

CHAPTER-6:
FINDINGS

REFERENCES

CHAPTER-1): 1.1) CONCEPTUAL OVERVIEW INTRODUCTION OF MUTUAL FUNDS:

The first mutual fund to be introduced in India was way back in 1963 when the Government of India launched Unit Trust of India (UTI). UTI enjoyed a monopoly in the Indian mutual fund market till 1987 when a host of other government controlled Indian financial companies came up with their own funds. These included State Bank of India, Canara Bank, Punjab National Bank etc. This market was made open to private players in 1993 after the historic constitutional amendments brought forward by the then Congress led government under the existing regime of Liberalization, Privatization and Globalization (LPG). The first private sector fund to operate in India was Kothari Pioneer which was later merged with Franklin Templeton. A mutual fund is a kind of investment that uses money from many investors to invest in stocks, bonds or other types of investment. A fund manager (or "portfolio manager") decides how to invest the money, and for this he is paid a fee, which comes from the money in the fund. Mutual funds are usually "open ended", meaning that new investors can join into the fund at any time. When this happens, new units, which are like shares, are given to the new investors. There are thousands of different kinds of mutual funds, specializing in investing in different countries, different types of businesses, and different investment styles. There are even some funds that only invest in other funds. Here are some characteristics of mutual funds: Investors purchase shares in the mutual fund from the fund itself, or through a broker for the fund, and cannot purchase the shares from other investors on a secondary market, such as the New York Stock Exchange or Nasdaq Stock Market. The price that investors pay for mutual fund shares is the funds approximate net asset value (NAV) per share plus any fees that the fund may charge at purchase, such as sales charges, also known as sales loads. Mutual fund shares are "redeemable." This means that when mutual fund investors want to sell their fund shares, they sell them back to the fund, or to a broker acting for the fund, at their current NAV per share, minus any fees the fund may charge, such as deferred sales loads or redemption fees. Mutual funds generally sell their shares on a continuous basis, although some funds will stop selling when, for example, they reach a certain level of assets under management. The investment portfolios of mutual funds typically are managed by separate entities known as "investment advisers" that are registered with the SEC. In addition, mutual funds themselves are registered with the SEC and subject to SEC regulation. There are many varieties of mutual funds, including index funds, stock funds, bond funds, and money market funds. Each may have a different investment objective and strategy and a different investment portfolio. Different mutual funds may also be subject to different risks, volatility, and fees and expenses. Fees reduce returns on fund investments and are an important factor that investors should consider when buying mutual fund shares.

CHAPTER-2):

RESEARCH METHODOLOGY:

2.1) OBJECTIVES OF THE STUDY:

To Study the ratio of money gained or lost (whether realized or unrealized) on an investment relative to the amount of money invested in Axis Mutual Funds in relation with Market Leader Fund & Benchmark.

2.2) METHODOLOGY:
A Sample of Four Schemes from Axis Mutual Fund & Four Mutual Fund Schemes from Market Leader Fund will be studied. Data is calculated for Past 1 Year and Returns is calculated for the period of 1 Year, 6months, 3months &1month as Axis New Fund Offers are launched in the year 2010.Therfore, it has no past record. Market leader fund is decided on the basis of Asset under Management (AUM). Return Generated will be analysis with the helps of Absolute Return, Beta & Standard deviation S&P NIFTY as a Benchmark.

2.3) SIGNIFICANCE OF THE STUDY:

Able to take better investing Decision in Mutual Fund Investors will be able to make the difference between Axis Mutual Fund and Market Leader Fund house. Investor will be able to understand whether the mutual fund schemes have been able to out perform the returns given by the Market Leader Fund. This analysis will help in identifying the funds which have Outperform the Benchmarks.

2.4) LIMITATIONS:
Sample size is a limited factor in the study; only last one year of Data has been taken. Fluctuation of Market due to the unforeseen future condition may affect the accuracy of the analysis & interpretations. Micro level data have been taken in analysis; Macro level data may affect the returns. The past performance of mutual funds does not guarantees future performance. The study is restricted to secondary data only.

CHAPTER-3) THEORITICAL BACKGROUND

Mutual Fund is an instrument of investing money. Nowadays, bank rates have fallen down and are generally below the inflation rate. Therefore, keeping large amounts of money in bank is not a wise option, as in real terms the value of money decreases over a period of time. One of the options is to invest the money in stock market. But a common investor is not informed and competent enough to understand the intricacies of stock market. This is where mutual funds come to the rescue. A mutual fund is a group of investors operating through a fund manager to purchase a diverse portfolio of stocks or bonds. Mutual funds are highly cost efficient and very easy to invest in. By pooling money together in a mutual fund, investors can purchase stocks or bonds with much lower trading costs than if they tried to do it on their own. Also, one doesn't have to figure out which stocks or bonds to buy. But the biggest advantage of mutual funds is diversification. Diversification means spreading out money across many different types of investments. When one investment is down another might be up. Diversification of investment holdings reduces the risk tremendously

Regulatory Authority:To protect the interest of the investors, SEBI formulates policies and regulates the mutual funds. It notified regulations in 1993 (fully revised in 1996) and issues guidelines from time to time. MF either promoted by public or by private sector entities including one promoted by foreign entities is governed by these Regulations. SEBI approved Asset Management Company (AMC) manages the funds by making investments in various types of securities. Custodian, registered with SEBI, holds the securities of various schemes of the fund in its custody. According to SEBI Regulations, two thirds of the directors of Trustee Company or board of trustees must be independent. The Association of Mutual Funds in India (AMFI) reassures the investors in units of mutual funds that the mutual funds function within the strict regulatory framework. Its objective is to increase public awareness of the mutual fund industry AMFI also is engaged in upgrading professional standards and in promoting best industry practices in diverse areas such as valuation, disclosure, transparency etc.

ADVANTAGES OF MUTUAL FUND

Professional Management The primary advantage of funds is the professional management of your money. Investors purchase funds because they do not have the time or the expertise to manage their own portfolios. A mutual fund is a relatively inexpensive way for a small investor to get a full-time manager to make and monitor investments Diversification By owning shares in a mutual fund instead of owning individual stocks or bonds, your risk is spread out. The idea behind diversification is to invest in a large number of assets so that a loss in any particular investment is minimized by gains in others. In other words, the more stocks and bonds you own, the less any one of them can hurt you (think about Enron). Large mutual funds typically own hundreds of different stocks in many different industries. It wouldn't be possible for an investor to build this kind of a portfolio with a small amount of money. Economies of Scale Because a mutual fund buys and sells large amounts of securities at a time, its transaction costs are lower than what an individual would pay for securities transactions. Liquidity Just like an individual stock, a mutual fund allows you to request that your shares be converted into cash at any time. Simplicity Buying a mutual fund is easy! Pretty well any bank has its own line of mutual funds, and the minimum investment is small. Most companies also have automatic purchase plans whereby as little as $100 can be invested on a monthly basis.

DISADVANTAGES OF MUTUAL FUND

Professional Management Many investors debate whether or not the professionals are any better than you or I at picking stocks. Management is by no means infallible, and, even if the fund loses money, the manager still gets paid. Costs Creating, distributing, and running a mutual fund is an expensive proposition. Everything from the managers salary to the investors statements cost money. Those expenses are passed on to the investors. Since fees vary widely from fund to fund, failing to pay attention to the fees can have negative long-term consequences. Remember, every dollar spend on fees is a dollar that has no opportunity to grow over time Dilution It's possible to have too much diversification. Because funds have small holdings in so many different companies, high returns from a few investments often don't make

much difference on the overall return. Dilution is also the result of a successful fund getting too big. When money pours into funds that have had strong success, the manager often has trouble finding a good investment for all the new money. Taxes When a fund manager sells a security, a capital-gains tax is triggered. Investors who are concerned about the impact of taxes need to keep those concerns in mind when investing in mutual funds. Taxes can be mitigated by investing in tax-sensitive funds or by holding non-tax sensitive mutual fund in a tax-deferred account

TYPES OF MUTUAL FUND

Money Market Funds The money market consists of short-term debt instruments, mostly Treasury bills. This is a safe place to park your money. You won't get great returns, but you won't have to worry about losing your principal. A typical return is twice the amount you would earn in a regular checking/savings account and a little less than the average certificate of deposit (CD).

Bond/Income Funds Income funds are named appropriately: their purpose is to provide current income on a steady basis. When referring to mutual funds, the terms "fixed-income," "bond," and "income" are synonymous. These terms denote funds that invest primarily in government and corporate debt. While fund holdings may appreciate in value, the primary objective of these funds is to provide a steady cash flow to investors. As such, the audience for these funds consists of conservative investors and retirees. Bond funds are likely to pay higher returns than certificates of deposit and money market investments, but bond funds aren't without risk. Because there are many different types of bonds, bond funds can vary dramatically depending on where they invest. For example, a fund specializing in high-yield junk bonds is much more risky than a fund that invests in government securities. Furthermore, nearly all bond funds are subject to interest rate risk, which means that if rates go up the value of the fund goes down. Balanced Funds The objective of these funds is to provide a balanced mixture of safety, income and capital appreciation. The strategy of balanced funds is to invest in a combination of fixed income and equities. A typical balanced fund might have a weighting of 60% equity and 40% fixed income. The weighting might also be restricted to a specified maximum or minimum for each asset class. A similar type of fund is known as an asset allocation fund. Objectives are similar to those of a balanced fund, but these kinds of funds typically do not have to hold a specified percentage of any asset class. The portfolio manager is therefore given freedom to switch the ratio of asset classes as the economy moves through the business cycle.

Equity Funds Funds that invest in stocks represent the largest category of mutual funds. Generally, the investment objective of this class of funds is long-term capital growth with some income. There are, however, many different types of equity funds because there are many different types of equities. A great way to understand the universe of equity funds is to use a style box, an example of which is below.

The idea is to classify funds based on both the size of the companies invested in and the investment style of the manager. The term value refers to a style of investing that looks for high quality companies that are out of favor with the market. These companies are characterized by low P/E and price-to-book ratios and high dividend yields. The opposite of value is growth, which refers to companies that have had (and are expected to continue to have) strong growth in earnings, sales and cash flow. A compromise between value and growth is blend, which simply refers to companies that are neither value nor growth stocks and are classified as being somewhere in the middle. For example, a mutual fund that invests in large-cap companies that are in strong financial shape but have recently seen their share prices fall would be placed in the upper left quadrant of the style box (large and value). The opposite of this would be a fund that invests in startup technology companies with excellent growth prospects. Such a mutual fund would reside in the bottom right quadrant. Global/International Funds An international fund (or foreign fund) invests only outside your home country. Global funds invest anywhere around the world, including your home country. It's tough to classify these funds as either riskier or safer than domestic investments. They do tend to be more volatile and have unique country and/or political risks. But, on the flip side, they can, as part of a well-balanced portfolio, actually reduce risk by increasing diversification. Although the world's economies are becoming more inter-related, it is likely that another. Economy somewhere is outperforming the economy of your home country.

Specialty Funds This classification of mutual funds is more of an all-encompassing category that consists of funds that have proved to be popular but don't necessarily belong to the categories we've described so far. This type of mutual fund forgoes broad diversification to concentrate on a certain segment of the economy. Sector funds are targeted at specific sectors of the economy such as financial, technology, health, etc. Sector funds are extremely volatile. There is a greater possibility of big gains, but you have to accept that your sector may tank. Regional funds make it easier to focus on a specific area of the world. This may mean focusing on a region (say Latin America) or an individual country (for example, only Brazil). An advantage of these funds is that they make it easier to buy stock in foreign countries, which is otherwise difficult and expensive. Just like for sector funds, you have to accept the high risk of loss, which occurs if the region goes into a bad recession. Socially-responsible funds (or ethical funds) invest only in companies that meet the criteria of certain guidelines or beliefs. Most socially responsible funds don't invest in industries such as tobacco, alcoholic beverages, weapons or nuclear power. The idea is to get a competitive performance while still maintaining a healthy conscience. Index Funds The last but certainly not the least important are index funds. This type of mutual fund replicates the performance of a broad market index such as the S&P 500 or Dow Jones Industrial Average (DJIA). An investor in an index fund figures that most managers can't beat the market. An index fund merely replicates the market return and benefits investors in the form of low fees

WORKING OF MUTUAL FUND:

CHAPTER-4) 4.1) CASE STUDY INTRODUCTION TO FUND HOUSES

4.1.) -:

EQUITY FUNDS:

A mutual fund which invests primarily in stocks, usually common stocks. Equity mutual funds are also known as stock mutual funds. Equity mutual funds invest pooled amounts of money in the stocks of public companies. Stocks represent part ownership, or equity, in companies, and the aim of stock ownership is to see the value of the companies increase over time. Stocks are often categorized by their market capitalization (or caps), and can be classified in three basic sizes: small, medium, and large. Many mutual funds invest primarily in companies of one of these sizes and are thus classified as large-cap, mid-cap or small-cap funds. Equity fund managers employ different styles of stock picking when they make investment decisions for their portfolios. Some fund managers use a value approach to stocks, searching for stocks that are undervalued when compared to other similar companies. Another approach to picking is to look primarily at growth, trying to find stocks that are growing faster than their competitors, or the market as a whole. Some managers buy both kinds of stocks, building a portfolio of both growth and value stocks. Since equity funds invest in stocks, they have the potential to generate more returns. On the other hand they carry greater risks too. Equity funds can be classified into diversified equity funds and sectoral equity funds. Criteria of selecting an Equity Fund Compare a fund with its peers: One of the basic fundamental of benchmarking is to evaluate funds with in the same category. For example, if you are evaluating the performance of a thematic fund, say IT based fund, then you should compare its performance with another similar IT based fund. Comparing it with banking sector fund for example will not give the correct picture. Comparing a fund over stock market cycle (boom and bust) will give investors a good idea about how the fund has fared. Compare returns against those of the benchmark index: Every fund mentions a benchmark index in the Offer Document. It can be BSE 100, BSE 200, Nifty or any other index. The benchmark index serves as a guidepost for both the fund manager and the investor. Compare how the fund has fared against the benchmark index over a period of 3-5 years. The funds that have outperformed their benchmark indices during stock market volatility must be given a close look.

Compare against the fund's own performance: Apart from comparing a fund with its peers and benchmark index, investors should evaluate its historical performance. By evaluating a fund against its own historical performance, you can get an idea about consistent performers.

4.1.1) INTRODUCTION TO AXIS EQUITY FUND

Axis Mutual Fund, has announced the launch of its first equity fund called Axis Equity Fund. This is a diversified equity fund benchmarked to the S&P CNX Nifty. The new fund offer (NFOs) open for subscription from November 11, to December 8, 2009. It will re-open for ongoing purchase and redemption on January 7, 2009. The face value of the new issue will be Rs 10 per unit. Commenting on the launch Mr. Rajiv Anand, MD & CEO, Axis AMC said, The uniqueness of the offering will not be the product per se but in the way the product is communicated and distributed. We aim to offer total investment solutions to consumers and not just individual products. Our research has shown that there is a huge demand for simplicity and trust in financial services. We therefore chose to launch a simple but effective product in the category of diversified equity funds. Key Feature of Fund:

A diversified equity fund that invests primarily in the Indian equity markets Provides the opportunity to capitalize on India's high paced growth Supported by a strong investment management team at Axis Mutual Fund Suitable for an investment horizon of 5 years or more With no entry load Easy Call facility available

Launch Date: 2009, January Net Assets: 734.42 Minimum Additional Purchase Amount Institutional Plan Rs.1 lakh and in multiples of Re. 1/- thereafter Retail Plan Rs.100 and in multiples of Re. 1/- thereafter 4Minimum application amount is applicable only at the time of creation of new folio. Loads Entry Load: Not Applicable Exit Load: an Exit Load of 1% is payable if Units are redeemed / switched-out within 1 year from the date of allotment

Options: Growth and Dividend / SIP Risk: Average

Return: Moderate

4.1.2) INTRODUCTION TO HDFC TOP 200 FUNDS:

The HDFC Top 200 Fund is one of the mutual fund schemes from HDFC Asset Management Company Ltd. The fund is an Open ended Equity and Diversified fund scheme. Launched in September 1996, the fund is equity diversified open ended mutual fund with a large cap bias. It is bench marked against BSE 200.HDFC Top 200 objectives state The scheme seeks capital appreciation and would invest up to 90 per cent in equity and the remaining in debt instruments. Also, the stocks would be drawn from the companies in the BSE 200 Index as well as 200 largest capitalized companies in India. The fund manager does retain the ability to invest in companies that are unlisted but which are still in the BSE top 200 by market capitalization. HDFC Top 200 carries a below average risk profile while its returns are high. Launch Date: September 1996 Net Assets: Rs 9,069 cr. Loads Entry Load: Nil Exit Load: 1% id redeemed within a year and nil if redeemed after year. Minimum Additional Purchase Amount Minimum Application Amount: Rs 5,000/- for new investors and Rs 1,000/- for existing ones. Options: Growth and Dividend / SIP Risk: Below Average Return: Very High

4.1.3) INTRODUCTION TO RELIANCE GROWTH FUND:

Launched on 8th October, 1995, Reliance Growth Fund focuses on companies in the mid-cap segment, while having small exposure to large-cap stocks. Reliance Growth Fund is offered by Reliance Mutual Fund and is part of their open-ended Equity Growth Scheme. It is one of Indias leading mutual funds. The main goal or objective of Reliance Growth Fund is to place your investment for a long term growth through investments in equity and equity related securities. And as we always point out, there is no assurance that the objective of investment will be realized as it depends on actual market movements. FEATURE: Aiming at consistent performance Predominant focus is on mid size capitalization stocks. Exposure from small to large size capitalization companies. Both top down and bottom up investing approaches are followed

Net Assets: 6,864.16 Loads Entry Load: Nil Exit Load: 1% id redeemed within a year and nil if redeemed after year. Minimum Additional Purchase Amount Minimum Application Amount: Rs 5,000/- for new investors and Rs 1,000/- for existing ones. Options: Growth and Dividend / SIP Risk: Below Average Return: Very High

4.1.4) INTRODUCTION TO BIRLA SUN LIFE FRONT LINE FUND:

The right opportunity for creating wealth rarely announces itself. Instead, it comes from companies big and small, from new industries and old ones. It doesn't stay put either. Today one company or sector yields spectacular returns; tomorrow, another. It takes immense time, effort and skill to track, spot and utilize the right opportunities. It takes speed and flexibility too . Therefore, Birla Sun Life Equity Fund (BSL Equity Fund) that aggressively looks for opportunities without any sectoral or size biases with the aim to give you superior returns.

Objective: To provide long term capital appreciation through a portfolio with target allocation of 90 percent in equity. Structure: Open Ended Equity Scheme Inception Date: August 27, 1998 Plans and Options under the Plan: Dividend, Growth Face Value (Rs/Unit): Rs. 10 Minimum Investment: Rs.5000. Entry Load: 2.25% for amount < 5 crores. Nil, for amount > 5 crore. Exit Load: Nil. Objective: To provide long term capital appreciation through a portfolio with target allocation of 90 percent in equity.

4.2):-

INCOME FUND/ MONTHLY INCOME PLAN:

A mutual fund which emphasizes current income in the form of dividends or coupon payments from bonds and/or preferred to stocks, and are rather than emphasizing growth. Income funds are considered to be conservative investments, since they avoid volatile growth stocks. Income funds are popular with retirees and other investors who are looking for a steady cash flow without assuming too much risk. Share prices of income funds are not fixed; they tend to fall when interest rates are rising and to increase when interest rates are falling. Generally, the bonds included in the portfolios of these funds are of investment grade. The other securities are of sufficient credit quality to assure a preservation of capital. There are two popular high-risk funds that also focus mainly on income: high-yield bond funds and bank loan funds. The former invests primarily in corporate "junk" bonds and the latter in floating-rate loans issued by banks or other financial institutions. Income funds are designed keeping in mind the investors approach for longer period of time. This fund helps in maximizing the wealth of Investors for a longer period. MIPs are hybrid investment avenues that invest a minor portion of their portfolio (around 15 per cent-30 per cent) in equities and the balance in debt and money market instruments (i.e. bonds, certificates, G Secs etc). The asset allocation pattern is designed in such a way that there is a cap of 10%-30% on the equity exposure in the portfolio which during a bear market phase helps in minimizing risk because of limited downside seen during bad times and also aims to generate above average returns in a good equity market phase. Therefore, the equity

component provides MIPs with just the edge it needs to outperform conventional debt funds. MIPs provide income to investors, but the periodicity depends upon the option chosen (Monthly/Quarterly) and the distributable surplus available in the fund. Growth Option provides income in the form of capital gains/appreciation. Case for Investment in the Fund With the current levels of market volatility, MIPs can be a good option considering their exposure to debt instruments. This helps in maintaining a comparatively low-risk portfolio and generates regular and stable returns. Stability, rather than quick and high returns, is usually the priority for a typical MIP investor. The equity exposure in the portfolio during a bear market phase helps in minimizing risk because of limited downside seen during bad times and also aims to generate above average returns in a good equity market phase. Therefore, the equity component provides MIPs with just the edge it needs to outperform conventional debt funds.

4.2.1) INTRODUCTION TO AXIS INCOME FUND:

Axis Mutual Fund has launched a new open ended income fund - Axis Income Saver Fund. The investment objective of the scheme is to generate regular income through investments in debt & money market instruments, along with capital appreciation through limited exposure to equity and equity related instruments, the company said in a statement. It also aims to manage risk through active asset allocation. The scheme would allocate 65-99% of assets in money market instruments and debt instruments securitized debt. It will invest 1-35% in equity and equity related instruments with high risk profile. The new fund offer (NFO) is open for subscription from May 24 to June 21. The scheme will reopen for continuous sale and repurchase of units on or before July 21. The units will be available at Rs 10 each during the NFO period. Like other mutual fund schemes, the scheme offers growth and dividend option. Dividend option further offers payout and reinvestment facility on a quarterly, half yearly and annual option. Key Feature

A low to medium risk fund suitable for an investment horizon of 2 4 years Brings stability to your portfolio by investing primarily in fixed income instruments Offers the potential for capital growth through limited exposure to equity instruments Adopts a quantitative asset allocation strategy for risk management Open-ended nature allows you to buy or sell units of the scheme at any point of time subject to applicable loads Scheme managed by an experienced team of fund managers

After the NFO period, the regular buying and selling will commence from 16th July 2010. Minimum Investment: Purchases: Rs. 5000/- and in multiple of Re. 1 thereafter. SIP or Systematic Investment Plan is also available. Investment Options for Axis Income Saver Fund: - Growth - Dividend (Payout and Reinvestment) No Tax Benefit is available in the Axis Income Saver Fund The entry load for Axis Income Saver Fund is as follows: Entry Load for Axis Income Saver Fund: Zero Entry Load Exit Load for Axis Income Saver Fund: Exit within 1 years from the date of allotment - 1 %; Exit after 1 years from the date of allotment - Nil Asset Size: 422.66 cores

4.2.2) INTRODUCTION TO HDFC INCOME FUND:

The primary objective of Scheme is to generate regular returns through investment primarily in Debt and Money Market Instruments. The secondary objective of the Scheme is to generate long-term capital appreciation by investing a portion of the Scheme`s assets in equity and equity related instruments. However, there can be no assurance that the investment objective of the Scheme will be achieved. HDFC MF Monthly Income Plan Long Term Plan Growth Option was assigned CRISIL Mutual Fund Rank 1# in the Open End MIP Aggressive Schemes Category (out of 19 schemes) for the 2 year period ending March 31, 2011 by CRISIL INCEPTION DATE: 26 December, 2003 FUND TYPE: An open ended ASSET SIZE: 9778.98 crore ENTRY LOAD: NIL EXIT LOAD: In respect of each purchase / switch in of Units, an Exit Load of 1.00% is payable if Units are redeemed / switched-out within 1 year from the date of allotment. No Exit Load is payable if Units are redeemed / switched-out after 1 year from the date of allotment.

OPTION PLAN: Growth Option, Quarterly Dividend Option, Monthly Dividend Option. Dividend Option offers Dividend Payout and Reinvestment Facility. LOCK IN PERIOD: NIL REDEMPTION PROCEEDS: DISPATCHED WITHIN 3OR4 BUSINESS DAYS.

4.2.3) INTRODUCTION TO BIRLA INCOME FUND:

Birla Sun Life MIP is an open-ended income scheme which seeks to generate regular income through investments in fixed income securities so as to make monthly payment or distribution to Unit-holders with the secondary objective being growth of capital through investments in equity. Birla Sun Life MIP is primarily a debt oriented fund that seeks to ensure an uninterrupted flow to unit holders with an additional objective of capital growth. FUND TYPE: OPEN ENDED FUND ASSET SIZE: 580.66crore MINIMUM INVESTMENT: 5000 LAUNCH DATE: Apr, 30 2004 ENTRY LOAD: NIL EXIT LOAD: In respect of each purchase / switch in of Units, an Exit Load of 1.00% is payable if Units are redeemed / switched-out within 1 year from the date of allotment. No Exit Load is payable if Units are redeemed / switched-out after 1 year from the date of allotment

4.2.4) INTRODUCTION TO RELIANCE INCOME FUND:

Investors may encounter slight hiccups in returns but the funds ability to bounce back has paid off over the long run. It has been a top quartile performer in five out of around seven years of its existence. The fund manager actively manages the debt portfolio as per the interest rate scenario and takes opportunistic bets whenever he sees one. It is an open ended fund OPTION: GROWTH INCEPTION DATE: January, 2004 ENTRY LOAD: NIL EXIT LOAD: 1% if redeemed within 1 year.

FACE VALUE: 10 FUND MANAGER: Amit Tripathy MINIMUM INVESTMENT: 5000

4.3) -:

TAX SAVER FUND OR ELSS:

Tax Saving Funds in India offer to the investors rebates in taxes under the Income Tax Act, Section 88 and they are also known as equity-linked savings schemes. Tax Saving Funds in India usually have a period of lock- which is generally of three years. As a result of this, the manager of the fund is not concerned about factors such as the pressures of redemption, performance of the fund during a short time, and thus does his job by keeping in view the long term goal. The fund manager of the Tax Saving Funds in India invests the money in instruments that are related to equity. Tax Saving Funds in India are suitable for those investors who want to increase their investments and also want to benefit from the rebates in taxes. The advantage of Tax Saving Funds in India is that they grant the investors an opportunity to make investments in an avenue that is market- linked and at the same time claim benefits in taxes. The dividends that are earned in Tax Saving Funds in India are tax free. ELSS is a great instrument for Tax planning while at the same time also a great tool for saving and investment. However you need to know a couple of key points about Tax Saving Funds: 1. The investor doesnt get any return during the tenure of the investment. 2. He or she gets a dividend from the funds house. Then s/he can choose to either cash in the dividends or re-invest the dividends. Key parameters that need evaluation before you select the right tax-saving fund. 1. Performance Among other things, investors must evaluate the tax-saving fund on NAV returns. While performance isn't everything, it is nonetheless a critical parameter on which a fund must redeem itself before you can consider investing in it. The fund must have put in a solid performance vis-vis the benchmark index (Sensex, Nifty, BSE 200, as the case maybe) as also its peer group. And since tax-saving funds have a 3-year lock-in, this performance must stand out over longer time frames 3-year, 5-year. In reality, all equity-linked investments need to be considered with a 3-5 year investment horizon, but ironically it takes a lock-in in a tax-saving fund for investors to evaluate equity funds over that 'extended' a timeframe. While evaluating performance, you need to put a premium on consistency across market phases. Most, if not all, funds do well during a bull run, and most funds do just as poorly during a market slump. Choose tax-saving funds that have put

in a reasonable show during the upturns and the downturns. For this you need to look at calendar year returns, not just compounded annual growth returns (CAGR). 2. Investment approach Equally important, if not more important than NAV returns, is the investment style and approach of the fund manager. Typically, mutual funds are either managed through strong systems and processes or they are managed with a strong individualistic trait, wherein the fund manager has sufficient leeway to make investment decisions. Of the two styles, the first one is preferable as there is greater emphasis on an investment team that follows a well-defined process that is known to the investor before hand and does not come as a shock to him at a later stage. To cite an example, Sundaram Tax Saver has a well-defined investment process that does not allow the fund manager to invest more than 5 per cent of net assets in a single stock. While this may be a defensive investment strategy, it also gives a lot of comfort to the investor who knows well in advance the risk levels associated with the fund. Given that you invest in a tax-saving fund with a minimum 3-year commitment, there is merit in selecting conservatively managed funds that look for undervalued stocks as the fund manager has the luxury of taking longish investment calls. 3. Volatility and risk-return Great NAV (net asset value) returns in isolation do not amount to much. A fund could have done exceedingly well during a bull run by pursuing an aggressive investment strategy and could have slumped as hard during the bear phase after that. What this means to the investor is that his fund's NAV is up sharply one month and down even more sharply the next month. This is the kind of turbulence that most investors can do without. Admittedly, equity funds cannot really eliminate turbulence in their performance given the nature of equities. But it can be kept under control by pursuing a disciplined investment approach. You need to identify funds that have a lower 'standard deviation' -- a measure used to gauge volatility in NAV performance. Likewise, look for tax-saving funds that have rewarded investors more per unit of risk taken by them. This is calculated by the Sharpe Ratio; a higher Sharpe Ratio indicates that the risk-return trade off has worked in the investor's interest. So a lower standard deviation and a higher Sharpe Ratio make for an ideal mutual fund investment. 4. Expenses Managing a fund entails costs like fund manager's salary, marketing/advertising costs and administration costs. The cost of investing in a mutual fund is measured by the expense ratio. The ratio represents the percentage of the fund's assets that go purely towards the cost of running the fund. Typically, tax-saving funds have expense ratios in the region of 2.25-2.50 per cent. A

lower expense ratio has a positive impact on the returns of the fund as the NAV (net asset value) is calculated after deducting the expenses. 5. Other parameters Some other parameters that you must look at are entry load and track record of the asset management company. Most tax-saving funds have an entry load of 2.00-2.25 per cent. Some fund houses waive off the entry load on investments made through SIPs (systematic investment plans). Likewise track record and asset management pedigree also need to be given due weight age. A fund house that has been embroiled in a controversy in the past can be given the miss. Likewise, a fund house that has just been launched can be considered only after you have exhausted other options. Remember, with a tax-saving fund, the fund house needs to have a minimum 3-year track record over which it should have witnessed market upturns and downturns. Investing in tax-saving funds must be given its due research and planning. By only playing the tax benefit angle, you run the risk of settling for a compromise and forfeiting the opportunity of making a great equity investment. Your tax-saving fund shopping list:

1. Less than 40% of net assets in the top 10 stocks of the portfolio. 2. Expense ratio less than 2.25%. 3. Standard deviation of less than 6.00%. 4. Sharpe Ratio higher than 0.60%. 5. Compounded growth of over 25% over 5-year.

4.3.1) INTRODUCTION TO AXIS TAX SAVER FUND:

Axis Mutual Fund has launched Axis Tax Saver Fund, an open ended equity linked savings scheme. The investment objective of the scheme is to generate income and long - term capital appreciation from a diversified portfolio of predominantly equity and equity - related securities The new fund offer (NFO) opens for subscription from December 17 2009 to December 21, 2009. The scheme re-opens for continuous sale and repurchase on January 1, 2010. The face value of the New Fund Offer (NFO) will be Rs 10 per unit. The scheme offers growth and dividend option. Dividend option offers payout and reinvestment facility. Key Features:

A diversified equity fund that invests in the Indian equity markets Provides the opportunity to capitalize on Indias high paced growth Also provides tax benefits under section 80C of the Income Tax Act, 1961

Lock-in period of only 3 years is the lowest amongst all section 80C options available today Suitable for an investment horizon of 5 years or more With no entry load Flexibility to invest across market caps in high growth stocks. Easy Call facility available.

Entry Load for Axis Income Saver Fund: Zero Entry Load Exit Load for Axis Income Saver Fund: No exit Load ASSET SIZE: 107.36 crore MINIMUM INVESTMENT: 500 LOCK IN PERIOD: 3years FUND TYPE: open ended The scheme would invest 80% - 100% of its assets in equity and equity related securities. It would invest 0- 20% of assets in debt and money market instruments. Debts include investment in securitized debt up-to 20% of the net assets of the scheme. The scheme will not invest in foreign securitized debt.

4.3.2) INTRODUCTION TO HDFC TAX SAVER FUND:

This fund is from the house of HDFC Mutual Fund. Just like any other ELSS funds in India, this fund too has the regular 3-year lock-in period. And you can save up to Rs. 1 Lakh under section 80 C. This fund is live online since December 18, 1995 and hence one of the oldest fund in this category. This is also the fund which has received 4 stars from Value Research and hence considered to be a good tax saver fund to invest in, according to them, although just like any other mutual funds, it is not a guarantee that it will perform in the same manner in the future and hence with the returns as well. Investment Objective: For this, HDFC Tax Saver Fund is to achieve long term growth of your capital by investing in equity and equity related markets. Asset Allocation: 80% in equities and 20% in debt. Options: HDFC Tax Saver Fund Growth, HDFC Tax Saver Fund Dividend (Payout and reinvestment).

Lock-in Period: Three years, the same as any other ELSS Fund in India. Entry and Exit Load: Nil even for the dividend reinvestment option. Minimum Investment: Rs. 500 and in multiples of Rs. 500 thereafter. The latest and current NAV of HDFC Tax Saver Growth is Rs. 204.214 as on March 19, 2010 and for the dividend option is Rs. 57.371. It has a risk grade of below average and return grade of above average percentage, according to Value Research. Thus if you are able to take up some risks and able to absorb in such cases you can invest in this HDFC TaxSaver (either in growth or dividend option) in order to save tax as well as to get gain maximum returns (thus maximum risks) then this fund is an ideal choice for you, as HDFC MF always have a history of great performing funds in its kitty and this Tax Saver Fund is one among them.

4.3.3) INTRODUCTION TO ICICI TAX FUND:

ICICI Pru Tax Plan is an open ended equity linked savings scheme (ELSS) that has the objective of long term growth of capital. It seeks to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related securities. It tracks the S&P CNX Nifty as the benchmark and has an average Assets Under management (AUM) of Rs. 1,043 Crore. Allocation of the scheme funds Up to 90% in Equity & Equity related instruments. Up to 10% in Debt, Money Market and Cash. Money market consists of government issued treasury bills, commercial papers, certificate of deposits and other such short term instruments with high liquidity and low risk. Just like other open ended schemes, it has a lock-in period of three years Benefits of the scheme Systematic Investment Plans Monthly: Minimum Rs. 500 or multiples thereof & 5 post-dated cheques for a minimum of Rs. 500 for a block of 5 months in advance. Quarterly: Minimum Rs.5000 + 4 post-dated cheques of Rs. 5000 each. Does not have any entry or exit load. Limitation: Systematic Withdrawal (SWP) is not available ASSET SIZE: 1323.20 CRORE

INCEPTION DATE: 1999, AUGUST.

4.3.4) INTRODUCTION TO FRANKLIN TAX FUND:

FIT, an open end equity linked savings scheme, is an investment which not only helps you save on taxes but also has the potential to give you attractive returns with convenience and flexibility. It was launched on April 1999. Options for maximizing your post-tax returns - Growth & Dividend (payout and reinvestment) Investments up to Rs.1 lakh will qualify for tax benefit under Sec 80C as amended by the Finance Act 2007. NAV: CALCULATED ON DAILY BASIS MINIMUM INVESTMENT: 500 ENTRY OR EXIT LOAD: NIL FUND MANAGER: ANAND RADHAKRISHNAN OPTION: GROWTH AND DIVIDEND FUND TYPE: EQUITY LINKED SAVING SCHEME

4.4) -:

HYBRID FUNDS:

A category of mutual fund that is characterized by portfolio that is made up of a mix of stocks and bonds, which can vary proportionally over time or remain fixed. Morningstar separates hybrid funds into domestic hybrid and international hybrid categories. A mutual fund that invests in a mix of stocks and bonds. These funds--often referred to as balanced funds-- are attractive to investors who want to allocate their assets in one investment vehicle. Many of these funds buy blue-chip stocks and high-quality bonds. Risks and returns typically are moderate, and expenses can be high. Investors can achieve similar results by buying separate stock and bond funds. Morningstar separates hybrid funds into domestic hybrid and international hybrid categories. Funds in the international category must have at least 40% of their portfolio in foreign stocks and bonds. Hybrid funds also are called balanced funds if they split holdings to about 60% stocks and 40% bonds.

4.4.1) AXIS TRIPLE ADVANTAGE FUND:

Axis Mutual Fund has launched a new fund as Axis Triple Advantage Fund, an open ended hybrid fund. The Investment objective of the scheme is to generate long term capital appreciation by investing in a diversified portfolio of equity and equity related instruments, fixed income instruments & gold Exchange Traded Funds. The New Fund Offer (NFO) opens for subscription from June 30, 2010 to July 29, 2010. The scheme re-opens for continuous sale and repurchase on or before August 28, 2010. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit.

The scheme offers growth and dividend option. Dividend option offers payout and reinvestment facility. Axis Triple Advantage Fund helps you take advantage of diversification by investing in a mix of equity, fixed income and gold. This not only helps avoid monetary surprises but also provides opportunity for wealth growth. With Axis Triple Advantage Fund, if you have planned for something, chances are you should be able to go and get it. Key Features:

Suitable for an investment horizon of 3 years or more Provides diversification across three asset classes viz. equity, fixed income and gold thereby leading to reduction in risk Returns potential not compromised even with reduced risk levels Returns more stable than pure equity or gold investments over the long term Offers convenience. Now one single application is sufficient for investment in three asset classes. 20 - 30% of investment in gold. Gold is a good hedge against financial crises.

Investors should note that the investment principles of this fund are to seek long terms capital appreciation and hence, as per the fund information, the investors are expected to stay invested for long. But please note that this does not guarantee any returns. Now the unique thing about this fund is that it is offering you a diversified investment opportunity, where your invested capital money will be split across into 3 and invested into the following in the mentioned proportion: - Shares/Equity and related instruments - 30-40% - Debt Instruments (Fixed Income Securities) - 30-40% - Gold ETF's or Gold Exchange Traded Funds - 20-30% So overall, this Axis Triple Advantage Fund seems to be offering a good mix of 3 variety of products. The proportion of allocation also seems to be good enough. Minimum Investment: Purchases: Rs. 5000/- and in multiple of Re. 1 thereafter. SIP or Systematic Investment Plan is available? - No Info No Tax Benefit is available in the Axis Triple Advantage Fund Investment Options for Axis Triple Advantage Fund: - Growth - Dividend (Payout and Reinvestment) The entry load for Axis Triple Advantage Fund is as follows: Entry Load for Axis Triple Advantage Fund: Zero Entry Load Exit Load for Axis Triple Advantage Fund:

1% if the amount sought to be redeemed or switched out is invested up to 1 year from date of allocation. This fund can be a good investment for investors willing to bet on the skills of the Axis Fund Managers and who believe that diversification can offer good returns as well as risk control

4.4.2) INTRODUCTION TO CANARA ROBECO INDIGO FUND:

Canara Robeco Mutual Fund has launched a new open ended debt fund - Canara Robeco Indigo (income from Debt Instruments & Gold) Fund. The investment objective of the scheme is to generate regular income from a portfolio of debt & money market securities along with investments in Gold ETFs. The New Fund Offer (NFO) is open for subscription from May 19, 2010 till June 10, 2010. The scheme re-opens for continuous sale and repurchase within 30 days from the date of closure of New Fund Offer. The units will be available at Rs 10/- each during the NFO period. The scheme offer growth and quarterly dividend options. Dividend option further offers payout and reinvestment facility. The Canara Robeco Indigo Fund is going to invest in two classes of securities - Gold ETF's and Debt related money market instruments. The word Gold ETF may make the investors think that it is an aggressive style equity fund, but the Canara Fund house is calling it a debt oriented fund. The word Indigo is actually derived from a combination of many terms - Income from Debt instruments and Gold. Minimum Investment: Purchases: Rs. 5000/- and in multiple of Re. 1 thereafter. SIP or Systematic Investment Plan is also available - Minimum installment amount 2,000 and 1,000 respectively for quarterly and monthly frequency respectively and in multiples of Re 1 thereafter. Investment Options for Canara Robeco Indigo Fund: - Growth - Dividend (Payout and Reinvestment) No Tax Benefit is available in the Canara Robeco Indigo Fund The entry load for Canara Robeco Indigo Fund is as follows: Entry Load for Canara Robeco Indigo Fund: Zero Entry Load Exit Load for Canara Robeco Indigo Fund: Exit within 1 year from the date of allotment - 1 %; Exit after 1 year from the date of allotment Nil

CHAPTER 5) DATA ANALYSIS

CHART SHOWING ABSOLUTE RETURN, STANDARD DEVIATION AND BETA RATIOS FOR 1 YEAR 6 MONTHS 3 MONTHS 1 MONTH BAR GRAPHS & SCATTER GRAPHS DEPICTING CURVES FOR ABSOLUTE RETURN, STANDARD DEVIATION AND BETA RATIOS 1 YEAR 6 MONTHS 3 MONTHS 1 MONTH

BAR GRAPH AND SCATTER GRAPH FOR EQUITY FUNDS:ABSOLUTE RETURN FOR 1 YEAR (2010-2011):BIRLA SFL HDFC TOP 200

AXIS

RELIANCE

-0.3659

4.5145

6.4787

-2.4331

ABSOLUTE RETURN
8 6 4 2 0 -2 -4 AXIS BIRLA SFL HDFC TOP RELIANCE 200 ABSOLUTE RETURN

INTERPRETATION: As we look into the above graph it shows that HDFC TOP 200 has performed well in last 1 year followed by Birla and on the other hand Axis was neutral while Reliance has shown negative returns in past 1 year. As Absolute return is the net change in the NAV over a specified period of time which means NAV of Reliance has not increased in last 1 year and there is a little change in the NAV of Axis.

STANDARD DEVIATION FOR 1 YEAR (2010-2011):-

AXIS 0.0097

BIRLA SFL 0.0095

HDFC TOP 200 0.0097

RELIANCE 0.0101

STANDARD DEVIATION
0.0102 0.0101 0.01 0.0099 0.0098 0.0097 0.0096 0.0095 0.0094 0 2 4 6 STANDARD DEVIATION

INTERPRETATION: As we look in the above graph it shows that Reliance Fund is more volatile than any other fund as higher the standard deviation higher the volatility while Axis and HDFC have same standard deviation but Birla has less value so it has got low volatility above all although Mutual funds are not very volatile and that is what this graph is showing.

BETA FOR 1 YEAR (2010-2011):-

AXIS

BIRLA SFL

HDFC TOP 200

RELIANCE

0.9234

0.8689

0.8796

0.4534

BETA
1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 0 1 2 3 4 5 6

BETA

INTERPRETATION: As Beta indicates the relation of fund with respect to the benchmark. If value of Beta is more than 1 that fund is more volatile and responsive towards market and if less than 1 it reflects less volatility. Therefore, in the above graphs Beta of all funds is less than 1. Hence, they are less volatile and less responsive towards their Benchmark Nifty during the period of 1 Year.

ABSOLUTE RETURN FOR 6 MONTHS (JAN2011-JULY2011):HDFC TOP 200

AXIS

BIRLA SFL

RELIANCE

-1.2692

-1.4157

0.1456

-2.5319

ABSOLUTE RETURN
0.5 0 AXIS -0.5 -1 ABSOLUTE RETURN -1.5 -2 -2.5 -3 BIRLA SFL HDFC TOP RELIANCE 200

INTERPRETATION: As we look into the above graph it depicts that only HDFC TOP 200 was able to give positive returns in last 6 months followed by AXIS and on the other side Reliance has shown the negative returns of -2.5319 in past 6 months.

STANDARD DEVIATION FOR 6 MONTHS (JAN2011-JULY2011):-

AXIS

BIRLA SFL

HDFC TOP 200

RELIANCE

0.0108

0.0101

0.0104

0.0107

STANDARD DEVIATION
0.0109 0.0108 0.0107 0.0106 0.0105 0.0104 0.0103 0.0102 0.0101 0.01 0 2 4 6 STANDARD DEVIATION

INTERPRETATION: As we look into the above graph it shows that NAV of AXIS and RELIANCE was more volatile in last 6 months and on the other side BIRLA was less volatile as compared to peers funds. Although risk is low as standard deviation is not too high of above funds.

BETA FOR 6 MONTHS (JAN2011-JULY2011):-

AXIS

BIRLA SFL

HDFC TOP 200

RELIANCE

0.932

0.877

0.892

0.4376

BETA
1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 0 1 2 3 4 5 6

BETA

INTERPRETATION: As we analyze the above graphs it clearly shows that Axis has high Beta than its peers therefore it is more responsive towards the Benchmark and also very low volatile followed by Birla and HDFC and on the other side Reliance has very low Beta which indicates less responsiveness and low volatility.

ABSOLUTE RETURN FOR 3 MONTHS (APRIL2011-JULY2011):BIRLA SFL HDFC TOP 200

AXIS

RELIANCE

-2.5939

-3.593

-3.3981

-3.3719

ABSOLUTE RETURN
0 -0.5 -1 -1.5 -2 -2.5 -3 -3.5 -4 ABSOLUTE RETURN AXIS BIRLA SFL HDFC TOP RELIANCE 200

INTERPRETATION: As the above graph shows a major down fall in all the mutual funds during the period of last 3 months but AXIS was the only fund which fall less as compared to its peers while Birla has given a negative return of -3.59 which is 1% more than AXIS and rest have also given negative returns of -3.38%.

STANDARD DEVIATION FOR 6 MONTHS (APRIL2011-JULY2011):BIRLA SFL HDFC TOP 200

AXIS

RELIANCE

0.009

0.0088

0.0089

0.0085

STANDARD DEVIATION
0.0091 0.009 0.0089 0.0088 0.0087 0.0086 0.0085 0.0084 0 2 4 6 STANDARD DEVIATION

INTERPRETATION: As the above graphs indicates that AXIS fund has higher volatility in its NAV in past 3 months followed by Birla and HDFC while Reliance standard deviation is .0085 which means is the less volatile among all but this graph overall indicates that standard deviation of all funds lies between .0085.0090. Therefore, these funds are not risky from the point of view of investors.

BETA FOR 3 MONTHS (APRIL2011-JULY2011):BIRLA SFL HDFC TOP 200

AXIS

RELIANCE

0.8957

0.8825

0.8658

0.7929

BETA
0.92 0.9 0.88 0.86 0.84 0.82 0.8 0.78 0 1 2 3 4 5 6 BETA

INTERPRETATION: As we look into the above graph it shows that curve is falling suddenly the trend has reversed is because of down fall in the value of Reliance. As Beta of all the funds are also almost similar and less than 1 which means they are less responsive and less risky for investor to invest.

ABSOLUTE RETURNS FOR 1 MONTH (JUNE2011-JULY2011):HDFC TOP 200 4.3731

AXIS 5.8309

BIRLA SFL 5.1912

RELIANCE 6.3474

ABSOLUTE RETURN
7 6 5 4 3 2 1 0 AXIS BIRLA SFL HDFC TOP RELIANCE 200 ABSOLUTE RETURN

INTERPRETATION: As we look into the above graph it reflects the sudden reverse in the trend of Absolute Returns in past 1 month as Benchmark has gone up during this period. Reliance has given the highest returns of 6.35% followed by AXIS who has given the return of 5.83% and than Birla than HDFC.

STANDARD DEVIATION FOR 1 MONTH (JUNE2011-JULY2011):HDFC TOP 200 0.0093

AXIS 0.0098

BIRLA SFL 0.0092

RELIANCE 0.0095

STANDARD DEVIATION
0.0099 0.0098 0.0097 0.0096 0.0095 0.0094 0.0093 0.0092 0.0091 0 2 4 6 STANDARD DEVIATION

INTERPRETATION: As we look into the above the graph it shows that standard deviation of AXIS is high as compared to its peers which indicate more volatility in the fund followed by Reliance whose NAV is also volatile and rest have less volatility in their NAVs.

BETA FOR 1 MONTH (JUNE2011-JULY2011):-

AXIS 0.9026

BIRLA SFL 0.8568

HDFC TOP 200 0.8548

RELIANCE 0.8291

BETA
0.91 0.9 0.89 0.88 0.87 0.86 0.85 0.84 0.83 0.82 0 1 2 3 4 5 6 BETA

INTERPRETATION: In this Beta graph all funds have Beta less than 1 which shows that they all are almost moving in same direction as it indicates less risky and low responsive towards Benchmark.

BAR GRAPH AND SCATTER GRAPH FOR INCOME FUND:ABSOLUTE RETURN FOR 1YEAR (2010-2011):-

AXIS 5.408

HDFC 5.5534

RELIANCE 5.8872

BIRLA SFL 5.927

ABSOLUTE RETURN
6 5.9 5.8 5.7 5.6 5.5 5.4 5.3 5.2 5.1 AXIS HDFC RELIANCE BIRLA SFL ABSOLUTE RETURN

INTERPRETATION: As we look into the above graph it clearly depicts that all the Mutual Funds MIP have given the return of more than 5% and Reliance, Birla has given the returns of 5.88 and 5.92 whereas AXIS and HDFC has given the return of 5.40 and 5.55% as It is a fund of income category it ensures lesser risk to the investors as around 65-70% portfolio of Funds is invested in Money market and debt and remaining in Equity.

STANDARD DEVIATIO FOR 1 YEAR (2010-2011):-

AXIS 0.002

HDFC 0.0014

BIRLA RELIANCE SFL 0.0021 0.0015

STANDARD DEVIATION
0.0025 0.002 0.0015 0.001 0.0005 0 0 1 2 3 4 5 STANDARD DEVIATION

INTERPRETATION: The above scatter graph shows that standard deviation in Income saver funds is very low as compare to the funds of equity category only Axis and Reliance have a little bit volatility in their NAV while HDFC and Birla have low standard deviation.

BETA FOR 1 YEAR (2010-2011):HDFC TOP 200 0.0101 BIRLA RELIANCE SFL 0.1652 0.1226

AXIS 0.1701

BETA
0.18 0.16 0.14 0.12 0.1 0.08 0.06 0.04 0.02 0 0 1 2 3 4 5 BETA

INTERPRETATION: As we look into the above graph it shows that all the funds have Beta less than 1 which indicates that the funds are less risky and no responsive towards the market fundamentals. As if the market moves up or down this funds may or may not move in the direction of Market.

ABSOLUTE RETURN FOR 6 MONTHS (JAN2011-JULY2011):-

AXIS

HDFC TOP 200

BIRLA RELIANCE SFL

2.9495

3.7703

3.5272

3.1274

ABSOLUTE RETURN
4 3.5 3 2.5 2 1.5 1 0.5 0 AXIS HDFC TOP 200 RELIANCE BIRLA SFL ABSOLUTE RETURN

INTERPRETATION: As we look into the above graph it depicts that Income saver fund in last 6 months have performed positive and able to give the returns of around 3%. Axis has given the lower return of 2.95% and HDFC has given the highest of 3.77%.

STANDARD DEVIATION FOR 6 MONTHS (JAN2011-JULY2011):HDFC TOP 200 0.0012

AXIS 0.0017

BIRLA RELIANCE SFL 0.0022 0.0017

STANDARD DEVIATION
0.0025 0.002 0.0015 0.001 0.0005 0 0 1 2 3 4 5 STANDARD DEVIATION

INTERPRETATION: The above scatter graph reflects that these funds are low risky and there is low volatility in their NAVs and are safe for the conservative investors for the period of 6 months.

BETA FOR 6 MONTHS (JAN2011-JULY2011):-

AXIS 0.139

HDFC TOP 200 0.0052

BIRLA RELIANCE SFL 0.171 0.1268

BETA
0.18 0.16 0.14 0.12 0.1 0.08 0.06 0.04 0.02 0 0 1 2 3 4 5 BETA

INTERPRETATION: The above graph present that HDFC has very low risk during the period of past 6 month and as all the funds have Beta lower than 1 the reason being its MIP only 30% proportion is in equity and remaining in Debt so these funds are much better for investors who invest their money in Fixed Deposits.

ABSOLUTE RETURN FOR 3MONTHS (APRIL2011-JULY2011):-

AXIS 1.1932

HDFC TOP 200 1.9631

BIRLA RELIANCE SFL 1.3527 0.9064

ABSOLUTE RETURN
2.5 2 1.5 1 0.5 0 AXIS HDFC TOP 200 RELIANCE BIRLA SFL ABSOLUTE RETURN

INTERPRETATION: Now as we look into the Bar graph of three months it ids giving all positive signs as HDFC has outperformed all the funds and followed by Reliance and Axis the net change in the NAV of all the funds compared to what it was three months before has shown a 1.5% increment in all the funds.

STANDARD DEVIATION FOR 3 MONTHS (APRIL2011-JULY2011):HDFC TOP 200 0.0014

AXIS 0.0017

BIRLA RELIANCE SFL 0.0017 0.0016

STANDARD DEVIATION
0.0018 0.0016 0.0014 0.0012 0.001 0.0008 0.0006 0.0004 0.0002 0 0 1 2 3 4 5 STANDARD DEVIATION

INTERPRETATION: As we look into the above graph it shows that standard deviation of AXIS and RELIANCE is high as compare to HDFC and BIRLA which indicates that funds with higher standard deviation are more volatile than the funds with lower standard deviation.

BETA FOR 3 MONTHS (APRIL2011-JULY2011):HDFC TOP 200 -0.0052 BIRLA RELIANCE SFL 0.1416 0.1243

AXIS 0.1582

BETA
0.18 0.16 0.14 0.12 0.1 0.08 0.06 0.04 0.02 0 -0.02 0 1 2 3 4 5 BETA

INTERPRETATION: The above graph shows that HDFC is very low risky as its Beta is less than 0 and others have positive beta which indicates that they are also less risky but a little bit more responsive towards their Benchmark.

ABSOLUTE FOR 1 MONTH (JUNE2011-JULY2011):HDFC TOP 200 1.0498

AXIS 1.6029

BIRLA RELIANCE SFL 1.9589 1.4326

ABSOLUTE RETURN
2.5 2 1.5 1 0.5 0 AXIS HDFC TOP 200 RELIANCE BIRLA SFL ABSOLUTE RETURN

INTERPRETATION: The above graph shows that Reliance has given higher returns followed by AXIS than Birla and HDFC during the period of 1 month.

STANDARD DEVIATION FOR 1 MONTH (JUNE2011-JULY2011):HDFC TOP 200 0.0008

AXIS 0.0019

BIRLA RELIANCE SFL 0.0018 0.0017

STANDARD DEVIATION
0.002 0.0018 0.0016 0.0014 0.0012 0.001 0.0008 0.0006 0.0004 0.0002 0 0 1 2 3 4 5

STANDARD DEVIATION

INTERPRETATION: This scatter graph portrays that Axis, Reliance and Birla have a little bit volatility in their NAVs but HDFC has very less volatility.

BETA FOR 1 MONTH (JUNE2011-JULY2011):HDFC TOP 200 -0.0205 BIRLA RELIANCE SFL 0.1441 0.1243

AXIS 0.1567

BETA
0.18 0.16 0.14 0.12 0.1 0.08 0.06 0.04 0.02 0 -0.02 0 -0.04

BETA

INTERPRETATION: As we look into the above graph it shows that HDFC has beta less than 0 during the period of 6 months and 3 months also while others have positive Beta which shows they are less risky.

BAR GRAPH AND SCATTER GRAPH FOR TAX SAVER FUND: ABSOLUTE RETURN FOR 1 YEAR (2010-2011)
AXIS ICICI HDFC FRANKLIN 28.787 5.174 4.4931 7.9407

ABSOLUTE RETURN
35 30 25 20 15 10 5 0 AXIS ICICI HDFC FRANKLIN ABSOLUTE RETURN

INTERPRETATION: As we look into the above graph it shows that AXIS TAX SAVER has outperformed and given a return of 28.78% which is more than the sum total of other 3 funds and Axis Tax Saver fund is ranked no.1 in ELSS category during the period of 1 year and rest have given the return of 5-7%.

STANDARD DEVIATION FOR 1 YEAR (2010-2011):AXIS ICICI HDFC FRANKLIN 0.009 0.0084 0.0081 0.0084

STANDARD DEVIATION
0.0091 0.009 0.0089 0.0088 0.0087 0.0086 0.0085 0.0084 0.0083 0.0082 0.0081 0.008 0 2 4 6

STANDARD DEVIATION

INTERPRETATION: As we look into the above graph Axis Standard deviation is very high which reflects the volatility of Axis NAV and ICICI and FRANKLIN have similar standard deviation and HDFC has low standard deviation.

BETA FOR 1 YEAR (2010-2011):-

AXIS ICICI HDFC FRANKLIN 0.8082 0.7247 0.1337 0.7581

BETA
0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 0 1 2 3 4 5 6 BETA

INTERPRETATION: As we look into the above graph it shows that beta of all the ELSS funds is less than 1 which means they have low risk and low responsiveness while beta of HDFC is very low is less than 0.5 which means it is not at all responsive and has very low returns.

ABSOLUTE RETURN FOR 6 MONTHS (JAN2011-JULY2011):AXIS ICICI HDFC FRANKLIN 5.4066 1.0367 0.3529 0.9097

ABSOLUTE RETURN
6 5 4 3 2 1 0 AXIS ICICI HDFC FRANKLIN ABSOLUTE RETURN

INTERPRETATION: As we look into the above graph it again shows that during the period of 6 months as well AXIS has out performed among its peers and given a return of more than 5% which is again more than the sum total of other 3 funds therefore the trend of AXIS ELSS continues for the period of 6 months as well.

STANDARD DEVIATION FOR 6 MONTHS (JAN2011-JULY2011):-

AXIS ICICI HDFC FRANKLIN 0.0097 0.0088 0.0084 0.0089

STANDARD DEVIATION
0.0098 0.0096 0.0094 0.0092 0.009 0.0088 0.0086 0.0084 0.0082 0 2 4 6 STANDARD DEVIATION

INTERPRETATION: As we look into the above graph it depicts that AXIS is more volatile than others and HDFC is less volatile among all.

BETA FOR 6 MONTHS (JAN2011-JULY2011):-

AXIS ICICI HDFC FRANKLIN 0.8269 0.7285 0.1837 0.7534

BETA
0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 0 1 2 3 4 5 6 BETA

INTERPRETATION: As we look into the above graph it shows that BETA of HDFC is less than 0.5 in the past 6 months as well and others have beta more than 0.5 but less than 1which indicates that they are less risky and sometimes responsive.

ABSOLUTE RETURN FOR 3 MONTHS (APRIL2011-JULY2011):-

AXIS ICICI HDFC FRANKLIN 2.1771 -1.1463 -1.6665 -2.33

ABSOLUTE RETURN
2.5 2 1.5 1 0.5 0 -0.5 -1 -1.5 -2 -2.5 -3

AXIS

ICICI

HDFC

FRANKLIN

ABSOLUTE RETURN

INTERPRETATION: As we look into the above graph it clarifies the whole picture that AXIS is the leader in Tax Saver as other funds are negative but AXIS hold its position and still up with positive 2.18% returns whereas HDFC, Franklin are 1.67% down.

STANDARD DEVIATION FOR 3 MONTHS (APRIL2011-JULY2011):-

AXIS ICICI HDFC FRANKLIN 0.008 0.0075 0.0073 0.0073

STANDARD DEVIATION
0.0081 0.008 0.0079 0.0078 0.0077 0.0076 0.0075 0.0074 0.0073 0.0072 0 2 4 6 STANDARD DEVIATION

INTERPRETATION: As we look into the above graph it shows that the standard deviation lies between 0.73-0.80 which indicates the stocks are not much risky and volatile during the period of 3 months.

BETA FOR 3 MONTHS (APRIL2011-JULY2011):-

AXIS ICICI HDFC FRANKLIN 0.783 0.7129 0.3886 0.7089

BETA
0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 0 1 2 3 4 5 6 BETA

INTERPRETATION: As we look into the above graph it depicts that again HDFC beta is less than 0.5 and others have more than 0.5 which indicates that they are low risky and low responsive.

ABSOLUTE RETURN FOR 1 MONTH (JUNE2011-JULY2011):-

AXIS ICICI HDFC FRANKLIN 6.299 5.2207 3.8572 2.907

ABSOLUTE RETURN
7 6 5 4 3 2 1 0 AXIS ICICI HDFC FRANKLIN ABSOLUTE RETURN

INTERPRETATION: As we look into the above graph it depicts that trend has improved here for other funds but AXIS ELSS continues to be at the top during the period of 1 month as well.

STANDARD DEVIATION FOR 1 MONTH (JUNE2011-JULY2011):-

AXIS ICICI HDFC FRANKLIN 0.0088 0.0074 0.0081 0.0079

STANDARD DEVIATION
0.009 0.0088 0.0086 0.0084 0.0082 0.008 0.0078 0.0076 0.0074 0.0072 0 2 4 6 STANDARD DEVIATION

INTERPRETATION: As we look into the above graph it depicts that Axis has high volatility and ICICI has low volatility as compared to its peers and HDFC and FRANKLIN are moderate.

BETA FOR 1 MONTH (JUNE2011-JULY2011):-

AXIS ICICI HDFC FRANKLIN 0.8109 0.669 0.7408 0.7152

BETA
0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 0 1 2 3 4 5 6 BETA

INTERPRETATION: As we look into the above graph it depicts that Beta of all the funds is less than 1 which indicates that it is less volatile and less responsive.

BAR GRAPH AND SCATTER GRAPH FOR HYBRID FUNDS:ABSOLUTE RETURN FOR 6 MONTHS (JAN2011-JULY2011):-

AXIS CANARA 4.2495 6.1762

ABSOLUTE RETURN
7 6 5 4 3 2 1 0 AXIS CANARA ABSOLUTE RETURN

INTERPRETATION: As we look into the above graph it shows that during the period of 6 months Canara has given the return of 6.17% more than AXIS which shows that there is an increment in the NAV of both the funds.

STANDARD DEVIATION FOR 6 MONYHS (JAN2011-JULY2011):-

AXIS CANARA 0.0042 0.0023

STANDARD DEVIATION
0.0045 0.004 0.0035 0.003 0.0025 0.002 0.0015 0.001 0.0005 0 0 0.5 1 1.5 2 2.5 STANDARD DEVIATION

INTERPRETATION: As we look into the above graph it depicts that these funds are low volatile as SD of Axis is higher than Canara which means AXIS is more volatile than Canara during the period of 6 months.

BETA FOR 6 MONTHS (JAN2011-JULY2011):-

AXIS CANARA 0.3159 -0.0282

BETA
0.35 0.3 0.25 0.2 0.15 0.1 0.05 0 -0.05 0 0.5 1 1.5 2 2.5 BETA

INTERPRETATION: As we look into the above graph it shows that beta of Axis is positive and of Canara is negative which means canara is less risky and not provide good returns as compared to AXIS.

ABSOLUTE RETURN FOR 3 MONTHS (APRIL2011-JULY2011):-

AXIS CANARA 1.102 2.7238

ABSOLUTE RETURN
3 2.5 2 1.5 1 0.5 0 AXIS CANARA ABSOLUTE RETURN

INTERPRETATION: As we look into the above graph it shows that canara is giving more returns than AXIS as both are showing positive signs as it is the HYBRID fund in which there is low equity exposure and half part is invested in gold and debt market.

STANDARD DEVIATION FOR 3 MONTHS (APRIL2011-JULY2011):-

AXIS CANARA 0.0039 0.0024

STANDARD DEVIATION
0.0045 0.004 0.0035 0.003 0.0025 0.002 0.0015 0.001 0.0005 0 0 0.5 1 1.5 2 2.5 STANDARD DEVIATION

INTERPRETATION: As we look into the above graph it indicates AXIS is more volatile than Canara and both are not much riskier for the investor to invest during the period of 3 months.

BETA FOR 3 MONTHS (APRIL2011-JULY2011):-

AXIS CANARA 0.3287 -0.0004

BETA
0.35 0.3 0.25 0.2 0.15 0.1 0.05 0 -0.05 0 0.5 1 1.5 2 2.5 BETA

INTERPRETATION: As we look into the above graph it shows that Beta of Canare is less than 0.5 and of Axis is plus 0.5 which highlights that AXIS is low risky with moderate returns and more responsive than Canara.

ABSOLUTE RETURN FOR 1 MONTH (JUNE2011-JULY2011):-

AXIS CANARA 2.7536 0.9752

ABSOLUTE RETURN
3 2.5 2 1.5 1 0.5 0 AXIS CANARA ABSOLUTE RETURN

INTERPRETATION: As we look into the above graph it depicts that trend has reverse here as AXSI portfolio has 35% of Gold and 35% debt and remaining equity so as the fundamentals of gold has become active in past 1 month that is why its NAV has jumped up and beat Canara.

STANDARD DEVIATION FOR 1 MONTH (JUNE2011-JULY2011):-

AXIS CANARA 0.0037 0.0025

STANDARD DEVIATION
0.004 0.0035 0.003 0.0025 0.002 0.0015 0.001 0.0005 0 0 0.5 1 1.5 2 2.5 STANDARD DEVIATION

INTERPRETATION: As we look into the above graph it presents that Axis is more volatile than Canara but both are low risky and better for the point of view of investors to invest.

BETA FOR 1 MONTH (JUNE2011-JULY2011):-

AXIS CANARA 0.2708 -0.0508

BETA
0.3 0.25 0.2 0.15 0.1 0.05 0 -0.05 -0.1 0 0.5 1 1.5 2 2.5 BETA

INTERPRETATION: As we look into the above graph again Canara has negative Beta and AXIS has positive Beta and as per this tool Canara fund is very weak for the period of 1 month and not better for investors to invest.

CHAPTER 6) FINDINGS ANALYSIS OF ABSOLUTE RETURNS:

FOR 1 YEAR In Equity fund HDFC has performed well with a return of 6.18% while Axis and Reliance has given negative Returns. In ELSS Axis Tax Saver fund has given a return of 28.78% and also beat the Benchmark. In Income fund all the funds have given the return between 5-6%. FOR 6 MONTHS In Equity fund HDFC has performed well with a return of .15% while others have given negative Returns. In ELSS Axis Tax Saver fund has given a return plus 5% while others have given a return of just 1 % In Income fund all the funds have given the return between 2-3% In hybrid fund CANARA out performed AXIS FOR 3 MONTHS In equity fund all are negative but AXIS has fallen less While in ELSS also AXIS beats other funds In Income fund HDFC gave higher returns FOR 1 MONTH Again in ELSS AXIS is the leader In Hybrid fund AXIS has given a return of 2 plus % while CANARA has given 1.5%.

ANALYSIS OF STANDARD DEVIATION: FOR 1 YEAR In equity fund Reliance is more volatile while others are less In Income category also Reliance is more volatile than peers While in Tax saver AXIS is more Volatile FOR 6 MONTHS Both reliance and Axis are volatile while others are less Volatility in Income fund is less because of low equity exposure In ELSS Axis was more volatile than its peers

FOR 3 MONTHS All the funds are volatile SD range between .0085-.0090 In ELSS AXIS is more volatile In Hybrid category also AXIS is highly volatile

FOR 1 MONTH In Income fund HDFC is less volatile than others No such volatility reflects during this period.

ANALYSIS OF BETA:

FOR 1 YEAR In equity funds BETA of all the funds is less than hence all are less responsive and low risky with moderate returns Beta of all MIP is less than 0.5 In ELSS beta of HDFC if very low and is very weak as compared to its peers FOR 6 MONTHS In MIP HDFC has lower BETA of .0052 In Hybrid Fund Canara has negative BETA.

FOR 3 MONTHS Again in hybrid funds Beta of canara is negative. BETA of equity funds is Higher than the BETA of MIP and ELSS Almost all funds are less responsive towards their Benchmarks.

FOR 1 MONTH In hybrid fund BETA of AXIS is Higher than Canara AXIS is highly responsive than any other fund in equity fund In ELSS ICICI has lower Beta than its peers.

BIBLIOGRAPHY: