A STUDY ON PERFORMANCE OF DIFFERENT SCHEMES IN MUTUAL FUNDS FROM HDFC MUTUAL FUNDS PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT

FOR The Award of MASTERS IN BUSINESS ADMINISTRATION Submitted by M. SATYA NARAYANA H.T.NO:083060106 Under the guidance of M. KARUNAKAR

DEPATRMENT OF BUSINESS ADMINISTRATION STANFORD PG COLLEGE

(AFFILIATED TO OSMANIA UNIVERSITY) HYDERABAD (2006-2008)

DECLARATION

I hereby declare that this Project Report titled PERFORMANCE

OF MUTUAL FUNDS

submitted by me to the

Department of Business Management, Osmania University, Hyderabad is a bonafide work undertaken by me and it is not submitted to any other University or Institution for the award of any degree diploma/certificate or published any time before.

PLACE: DATE: (M. SATYA NARAYANA)

CERTIFICATE
This is to certify that the Project Report titled PERFORMANCE OF MUTUAL FUNDS submitted in partial fulfillment for the award of Master of Business Administration was carried out by M. SATYA NARAYANA under my guidance. This has not been submitted to any other University or Institution for the award of any degree / diploma / certificate.

PLACE: DATE:

Signature of the Supervisor

ACKNOWLEDGEMENT
I take this opportunity to thank Mr. M. KARUNAKAR Principal of M.B.A Dept . STAN FORD PG COLLEGE, for his encouragement in doing the project work.

I would like to thank Mr M. KARUNAKAR Head of The Department of M.B.A Dept. for his

I would like to thank Mrs. M. KARUNAKAR Faculty of Finance for his guidance and suggestion and his kind help and motivation in completing the project.

I take the opportunity to express my deep and sincere gratitude to the management of HDFC Mutual Fund for their gesture of allowing me to undertake this project and its various employees who lent their hand towards the completion this study.

(M. SATYA NARAYANA)

CONTENTS

CHAPTER- 1 INTRODUCTION CHAPTER-2 INDUSTRY PROFILE COMPANY PROFILE CHAPTER-3 OBJECTIVES AND METHODOLOGY a. Objectives b. Methodology c. Significance of the study d. Presentation of the study e. Limitations CHAPTER-4 DATA ANALYSIS & INTREPRETATION

CHAPTER-5 FINDINGS AND SUGGESTIONS

BIBLIOGRAPHY

LIST OF TABLES

TABLE NO. 1

TABLE TITLE Returns, mean, variance, standard deviation of HDFC TAX SAVER DIVIDEND PLAN for the period of July 07 Returns, mean, variance, standard deviation of HDFC TAX SAVER DIVIDEND PLAN for the period of August 07 Returns, mean, variance, standard deviation of HDFC TAX SAVER DIVIDEND PLAN for the period of September 07 Returns, mean, variance, standard deviation of HDFC TAX SAVER DIVIDEND PLAN for the period of -October 07 Returns, mean, variance, standard deviation of HDFC TAX SAVER DIVIDEND PLAN for the period of -November 07 Returns, mean, variance, standard deviation of HDFC TAX SAVER DIVIDEND PLAN for the period of -December 07 Returns, mean, variance, standard deviation of HDFC Monthly income plan Long term plan Growth option for the period July-07 Returns, mean, variance, standard deviation of HDFC Monthly income plan Long term plan Growth option for the period August-07

PAGE NO. 36

38

40

42

44

46

48

50

TABLE NO. 9

TABLE TITLE Returns, mean, variance, standard deviation of

PAGE NO. 52

HDFC Monthly income plan Long term plan 10 Growth option for the period September-07 Returns, mean, variance, standard deviation of HDFC Monthly income plan Long term plan 11 Growth option for the period October-07 Returns, mean, variance, standard deviation of HDFC Monthly income plan Long term plan 12 Growth option for the period November-07 Returns, mean, variance, standard deviation of HDFC Monthly income plan Long term plan 13 Growth option for the period December-07 Returns, mean, variance, standard deviation of HDFC Floating Rate income fund long term plan14 Dividend for the period July-07 Returns, mean, variance, standard deviation of HDFC Floating Rate income fund long term plan15 Dividend for the period August-07 Returns, mean, variance, standard deviation of HDFC Floating Rate income fund long term plan16 Dividend for the period September-07 Returns, mean, variance, standard deviation of HDFC Floating Rate income fund long term planDividend for the period October-07 66 64 62 60 58 56 54

TABLE NO. 17

TABLE TITLE Returns, mean, variance, standard deviation of HDFC Floating Rate income fund long term plan-Dividend for the period November-07 Returns, mean, variance, standard deviation of HDFC Floating Rate income fund long term plan-Dividend for the period December-07

PAGE NO. 68

18

70

19

Comparisons of various HDFC Mutual Funds For the month of july-07

72

20 21 22

Comparisons of various HDFC Mutual Funds For the month of August-07 Comparisons of various HDFC Mutual Funds For the month of September-07

73 74 75

Comparisons of various HDFC Mutual Funds For the month of October-07 23 Comparisons of various HDFC Mutual Funds For the month 24 of November-07 Comparisons of various HDFC Mutual Funds For the month of December-07 77 76

LIST OF GRAPHS
GRAPH 1 2 3 4 5 GRAPH TITLE Graphical presentation for HDFC Tax Saver fund For the month of July-07 Graphical presentation for HDFC Tax Saver fund For the month of August-07 Graphical presentation for HDFC Tax Saver fund For the month of September-07 Graphical presentation for HDFC Tax Saver fund For the month of October-07 Graphical presentation for HDFC Tax Saver fund For the

PAGE NO
37 39 41 43 45

6 7

month of November-07 Graphical presentation for HDFC Tax Saver fund For the month of December-07 Graphical presentation for HDFC Monthly Income plan Long Term Plan Growth option For the Month Of July-07

47 49

Graphical presentation for HDFC Monthly Income plan Long Term Plan Growth option For the Month Of August-07 Graphical presentation for HDFC Monthly Income plan Long Term Plan Growth option For the Month Of September-07

51

53

10

Graphical presentation for HDFC Monthly Income plan Long Term Plan Growth option For the Month Of October-07

55

GRAPH 11

GRAPH TITLE Graphical presentation for HDFC Monthly Income plan Long Term Plan Growth option For the Month Of November-07 Graphical presentation for HDFC Monthly Income plan Long Term Plan Growth option For the Month Of December-07 Graphical presentation for HDFC Floating Rate Income Fund Long term Plan Dividend For the month Of July-07 Graphical presentation for HDFC Floating Rate Income Fund Long term Plan Dividend For the month Of August-07 Graphical presentation for HDFC Floating Rate Income

PAGE NO
57

12

59

13

61

14

63

15

65

Fund Long term Plan Dividend For the month Of September-07 16 17 Graphical presentation for HDFC Floating Rate Income Fund Long term Plan Dividend For the month Of October-07 Graphical presentation for HDFC Floating Rate Income Fund Long term Plan Dividend For the month Of November-07 67 69

GRAPH 18

GRAPH TITLE Graphical Representation for HDFC Floating Rate Income Fund Long term Plan Dividend For the month Of December-07

PAGE NO
71

19

Graphical Representation of various schemes for the month of July-07

72

20 Graphical Representation of various Schemes for the month of August-07 21 Graphical Representation of various schemes for the month of September-07 22 Graphical Representation of various schemes for the month of October-07 23 Graphical Representation of various schemes for the

73

74

75

76

month of November-07 24 Graphical Representation of various schemes for the month of December-07 77

INTRODUCTION

INTRODUCTION TO MUTUAL FUND

Mutual fund is a trust that pools money from a group of investors (sharing common financial goals) and invest the money thus collected into asset classes that match the stated investment objectives of the scheme. Since the stated investment objective of a mutual fund scheme generally forms the basis for an investor's decision to contribute money to the pool, a mutual fund can not deviate from its stated objectives at any point of time. Every Mutual Fund is managed by a fund manager, who using his investment management skills and necessary research works ensures much better return than what an investor can manage on his own. The capital appreciation and other incomes earned from these investments are passed on to the investors (also known as unit holders) in proportion of the number of units they own.

1 When an investor subscribes for the units of a mutual fund, he becomes part owner of the assets of the fund in the same proportion as his contribution amount put up with the corpus (the total amount of the fund). Mutual Fund investor is also known as a mutual fund shareholder or a unit holder. Any change in the value of the investments made into capital market instruments (such as shares, debentures etc) is reflected in the Net Asset Value (NAV) of the scheme. NAV is defined as the market value of the Mutual Fund scheme's assets net of its liabilities. NAV of a scheme is calculated by dividing the market value of scheme's assets by the total number of units issued to the investors. ADVANTAGES OF MUTUAL FUND 1. Portfolio Diversification: Mutual Funds invest in a well-diversified portfolio of securities which enables investor to hold a diversified investment portfolio (whether the amount of investment is big or small).

2. Professional Management: Fund manager undergoes through various research works and has better investment management skills which ensure higher returns to the investor than what he can manage on his own. 3. Less Risk: Investors acquire a diversified portfolio of securities even with a small investment in a Mutual Fund. The risk in a diversified portfolio is lesser than investing in merely 2 or 3 securities. 4. Low Transaction Costs: Due to the economies of scale (benefits of larger volumes), mutual funds pay lesser transaction costs. These benefits are passed on to the investors. 5. Liquidity: An investor may not be able to sell some of the shares held by him very easily and quickly, whereas units of a mutual fund are far more liquid. 2

6. Choice of Schemes: Mutual funds provide investors with various schemes with different investment objectives. Investors have the option of investing in a scheme having a correlation between its investment objectives and their own financial goals. These schemes further have different plans/options 7. Transparency: Funds provide investors with updated information pertaining to the markets and the schemes. All material facts are disclosed to investors as required by the regulator. 8. Flexibility: Investors also benefit from the convenience and flexibility offered by Mutual Funds. Investors can switch their holdings from a debt scheme to an equity scheme and vice-versa. Option of systematic (at regular intervals) investment and withdrawal is also offered to the investors in most open-end schemes.

9. Safety: Mutual Fund industry is part of a well-regulated investment environment where the interests of the investors are protected by the regulator. All funds are registered with SEBI and complete transparency is forced.

DISADVANTAGES OF MUTUAL FUND 1.Costs Control Not in the Hands of an Investor: Investor has to pay investment management fees and fund distribution costs as a percentage of the value of his investments (as long as he holds the units), irrespective of the performance of the fund.

3 2. No Customized Portfolios: The portfolio of securities in which a fund invests is a decision taken by the fund manager. Investors have no right to interfere in the decision making process of a fund manager, which some investors find as a constraint in achieving their financial objectives. 3. Difficulty in Selecting a Suitable Fund Scheme: Many investors find it difficult to select one option from the plethora of funds/schemes/plans available. For this, they may have to take advice from financial planners in order to invest in the right fund to achieve their objectives. TYPES OF MUTUAL FUNDS General Classification of Mutual Funds Open-end Funds / Closed-end Funds Open-end Funds:

Funds that can sell and purchase units at any point in time are classified as Open-end Funds. The fund size (corpus) of an open-end fund is variable (keeps changing) because of continuous selling (to investors) and repurchases (from the investors) by the fund. An open-end fund is not required to keep selling new units to the investors at all times but is required to always repurchase, when an investor wants to sell his units. The NAV of an open-end fund is calculated every day. Closed-end Funds: Funds that can sell a fixed number of units only during the New Fund Offer (NFO) period are known as Closed-end Funds. The corpus of a Closed-end Fund remains unchanged at

all times. After the closure of the offer, buying and redemption of units by the investors directly from the Funds is not allowed. However, to protect the interests of the investors, SEBI provides investors with two avenues to liquidate their positions: 1. Closed-end Funds are listed on the stock exchanges where investors can buy/sell units from/to each other. The trading is generally done at a discount to the NAV of the scheme. The NAV of a closed-end fund is computed on a weekly basis (updated every Thursday). 2. Closed-end Funds may also offer "buy-back of units" to the unit holders. In this case, the corpus of the Fund and its outstanding units do get changed. Load Funds/no-load funds

Load Funds: Mutual Funds incur various expenses on marketing, distribution, advertising, portfolio churning, fund managers salary etc. Many funds recover these expenses from the investors in the form of load. These funds are known as Load Funds. A load fund may impose following types of loads on the investors:

Entry Load Also known as Front-end load, it refers to the load charged to an investor at the time of his entry into a scheme. Entry load is deducted from the investors contribution amount to the fund. 5

Exit Load Also known as Back-end load, these charges are imposed on an investor when he redeems his units (exits from the scheme). Exit load is deducted from the redemption proceeds to an outgoing investor.

Deferred Load Deferred load is charged to the scheme over a period of time. Contingent Deferred Sales Charge (CDSS) In some schemes, the percentage of exit load reduces as the investor stays longer with the fund. This type of load is known as Contingent Deferred Sales Charge.

No-Load Fund: All those funds that do not charge any of the above mentioned loads are known as No-load Funds. Tax-exempt Funds/ Non-Tax-exempt Funds Tax-exempt Funds:

Funds that invest in securities free from tax are known as Tax-exempt Funds. All open-end equity oriented funds are exempt from distribution tax (tax for distributing income to investors). Long term capital gains and dividend income in the hands of investors are taxfree. Non-Tax-exempt Funds: Funds that invest in taxable securities are known as Non-Tax-exempt Funds. In India, all funds, except open-end equity oriented funds are liable to pay tax on distribution income. Profits arising out of sale of units by an investor within 12 months of purchase are 6 categorized as short-term capital gains, which are taxable. Sale of units of an equity oriented fund is subject to Securities Transaction Tax (STT). STT is deducted from the redemption proceeds to an investor 1. Equity Funds: Equity funds are considered to be the more risky funds as compared to other fund types, but they also provide higher returns than other funds. It is advisable that an investor looking to invest in an equity fund should invest for long term i.e. for 3 years or more. There are different types of equity funds each falling into different risk bracket. In the order of decreasing risk level, there are following types of equity funds: (1)Aggressive Growth Funds: In Aggressive Growth Funds, fund managers aspire for maximum capital appreciation and invest in less researched shares of speculative nature. Because of these speculative investments Aggressive Growth Funds become more volatile and thus, are prone to higher risk than other equity funds.

a. Growth Funds: Growth Funds also invest for capital appreciation (with time horizon of 3 to 5 years) but they are different from Aggressive Growth Funds in the sense that they invest in companies that are expected to outperform the market in the future. Without entirely adopting speculative strategies, Growth Funds invest in those companies that are expected to post above average earnings in the future. b. Speciality Funds: Speciality Funds have stated criteria for investments and their portfolio comprises of only those companies that meet their criteria. Criteria for some 7 speciality funds could be to invest/not to invest in particular regions/companies. Speciality funds are concentrated and thus, are comparatively riskier than diversified funds. There are following types of speciality funds: 1. Sector Funds: Equity funds that invest in a particular sector/industry of the market are known as Sector Funds. The exposure of these funds is limited to a particular sector (say Information Technology, Auto, Banking, Pharmaceuticals or Fast Moving Consumer Goods) which is why they are more risky than equity funds that invest in multiple sectors. 2. Foreign Securities Funds: Foreign Securities Equity Funds have the option to invest in one or more foreign companies. Foreign securities funds achieve international diversification and hence they are less risky than sector funds. However, foreign securities funds are exposed to foreign exchange rate risk and country risk.

3. Mid-Cap or Small-Cap Funds: Funds that invest in companies having lower market capitalization than large capitalization companies are called Mid-Cap or Small-Cap Funds. Market capitalization of Mid-Cap companies is less than that of big, blue chip companies (less than Rs. 2500 crores but more than Rs. 500 crores) and Small-Cap companies have market capitalization of less than Rs. 500 crores. Market Capitalization of a company can be calculated by multiplying the market price of the company's share by the total number of its outstanding shares in the market. The shares of Mid-Cap or Small-Cap Companies are not as liquid as of Large-Cap Companies which gives rise to volatility in share prices of these companies and consequently, investment gets risky. 8 4. Diversified Equity Funds: Except for a small portion of investment in liquid money market, diversified equity funds invest mainly in equities without any concentration on a particular sector(s). These funds are well diversified and reduce sector-specific or company-specific risk. However, like all other funds diversified equity funds too are exposed to equity market risk. One prominent type of diversified equity fund in India is Equity Linked Savings Schemes (ELSS). As per the mandate, a minimum of 90% of investments by ELSS should be in equities at all times. ELSS investors are eligible to claim deduction from taxable income (up to Rs 1 lakh) at the time of filing the income tax return. ELSS usually has a lock-in period and in case of any redemption by the investor before the expiry of the lock-in period makes him liable to pay income tax on such income(s) for which he may have received any tax exemption(s) in the past.

c. Equity Index Funds: Equity Index Funds have the objective to match the performance of a specific stock market index. The portfolio of these funds comprises of the same companies that form the index and is constituted in the same proportion as the index. Equity index funds that follow broad indices (like S&P CNX Nifty, Sensex) are d. Less risky than equity index funds that follow narrow sectoral indices (like BSEBANKEX or CNX Bank Index etc). Narrow indices are less diversified and therefore, are more risky. 2.Debt/IncomeFunds: Funds that invest in medium to long-term debt instruments issued by private companies, banks, financial institutions, governments and other entities belonging to various sectors 9 (like infrastructure companies etc.) are known as Debt / Income Funds. Debt funds are low risk profile funds that seek to generate fixed current income (and not capital appreciation) to investors. In order to ensure regular income to investors, debt (or income) funds distribute large fraction of their surplus to investors. Although debt securities are generally less risky than equities, they are subject to credit risk (risk of default) by the issuer at the time of interest or principal payment. To minimize the risk of default, debt funds usually invest in securities from issuers who are rated by credit rating agencies and are considered to be of "Investment Grade". Debt funds that target high returns are more risky. Based on different investment objectives, there can be following types of debt funds: a. Diversified Debt Funds: Debt funds that invest in all securities issued by entities belonging to all sectors of the market are known as diversified debt funds. The best

feature of diversified debt funds is that investments are properly diversified into all sectors which results in risk reduction. Any loss incurred, on account of default by a debt issuer, is shared by all investors which further reduces risk for an individual investor. b. Focused Debt Funds: Unlike diversified debt funds, focused debt funds are narrow focus funds that are confined to investments in selective debt securities, issued by companies of a specific sector or industry or origin. Some examples of focused debt funds are sector, specialized and offshore debt funds, funds that invest only in Tax Free Infrastructure or Municipal Bonds. Because of their narrow orientation, focused debt

10 c. funds are more risky as compared to diversified debt funds. Although not yet available in India, these funds are conceivable and may be offered to investors very soon. d. Assured Return Funds: Although it is not necessary that a fund will meet its objectives or provide assured returns to investors, but there can be funds that come with a lock-in period and offer assurance of annual returns to investors during the lock-in period. Any shortfall in returns is suffered by the sponsors or the Asset Management Companies (AMCs). These funds are generally debt funds and provide investors with a low-risk investment opportunity. However, the security of investments depends upon the net worth of the guarantor (whose name is specified in

advance on the offer document). To safeguard the interests of investors, SEBI permits only those funds to offer assured return schemes whose sponsors have adequate networth to guarantee returns in the future. In the past, UTI had offered assured return schemes (i.e. Monthly Income Plans of UTI) that assured specified returns to investors in the future. UTI was not able to fulfill its promises and faced large shortfalls in returns. Eventually, government had to intervene and took over UTI's payment obligations on itself. Currently, no AMC in India offers assured return schemes to investors, though possible. e. Fixed Term Plan Series: Fixed Term Plan Series usually are closed-end schemes having short term maturity period (of less than one year) that offer a series of plans and issue units to investors at regular intervals. Unlike closed-end funds, fixed term plans are not listed on the exchanges. Fixed term plan series usually invest in debt / income schemes and target short-term investors. The objective of fixed term plan schemes is to 11

f. Gratify investors by generating some expected returns in a short period. g. 1.Open-end | 2.Closed-end 3.GiltFunds Also known as Government Securities in India, Gilt Funds invest in government papers (named dated securities) having medium to long term maturity period. Issued by the Government of India, these investments have little credit risk (risk of default) and provide safety of principal to the investors. However, like all debt funds, gilt

funds too are exposed to interest rate risk. Interest rates and prices of debt securities are inversely related and any change in the interest rates results in a change in the NAV of debt/gilt funds in an opposite direction. 4. Money Market/Liquid Funds: Money market / liquid funds invest in short-term (maturing within one year) interest bearing debt instruments. These securities are highly liquid and provide safety of investment, thus making money market / liquid funds the safest investment option when compared with other mutual fund types. However, even money market / liquid funds are exposed to the interest rate risk. The typical investment options for liquid funds include Treasury Bills (issued by governments), Commercial papers (issued by companies) and Certificates of Deposit (issued by banks). 5. Hybrid Funds: As the name suggests, hybrid funds are those funds whose portfolio includes a blend of equities, debts and money market securities. Hybrid funds have an equal proportion of 12 debt and equity in their portfolio. There are following types of hybrid funds in India: a. Balanced Funds The portfolio of balanced funds include assets like debt securities, convertible securities, and equity and preference shares held in a relatively equal proportion. The objectives of balanced funds are to reward investors with a regular income, moderate capital appreciation and at the same time minimizing the risk of capital erosion. Balanced funds are appropriate for conservative investors having a long term investment horizon.

b. Growth-and-Income Funds Funds that combine features of growth funds and income funds are known as Growth-and-Income Funds. These funds invest in companies having potential for capital appreciation and those known for issuing high dividends. The level of risks involved in these funds is lower than growth funds and higher than income funds. 6. Commodity Funds: Those funds that focus on investing in different commodities (like metals, food grains, crude oil etc.) or commodity companies or commodity futures contracts are termed as Commodity Funds. A commodity fund that invests in a single commodity or a group of commodities is a specialized commodity fund and a commodity fund that invests in all available commodities is a diversified commodity fund and bears less risk than a specialized commodity fund. Precious Metals Fund and Gold Funds (that invest in gold, gold futures or shares of gold mines) are common examples of commodity funds.

13 7. Real Estate Funds: Funds that invest directly in real estate or lend to real estate developers or invest in shares/securitized assets of housing finance companies, are known as Specialized Real Estate Funds. The objective of these funds may be to generate regular income for investors or capital appreciation.

8. Exchange Traded Funds (ETF): Exchange Traded Funds provide investors with combined benefits of a closed-end and an open-end mutual fund. Exchange Traded Funds follow stock market indices and are traded on stock exchanges like a single stock at index linked prices. The biggest advantage offered by these funds is that they offer diversification, flexibility of holding a single share (tradable at index linked prices) at the same time. Recently introduced in India, these funds are quite popular abroad. 9. Fund of Funds: Mutual funds that do not invest in financial or physical assets, but do invest in other mutual fund schemes offered by different AMCs, are known as Fund of Funds. Fund of Funds maintain a portfolio comprising of units of other mutual fund schemes, just like conventional mutual funds maintain a portfolio comprising of equity/debt/money market instruments or non financial assets. Fund of Funds provide investors with an added advantage of diversifying into different mutual fund schemes with even a small amount of investment, which further helps in diversification of risks. However, the expenses of Fund of Funds are quite high on account of compounding expenses of investments into different mutual fund schemes.

14

Literature Review

HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Government of India and Reserve Bank the. The history of mutual funds in India can be broadly divided into four distinct phases

First Phase 1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of assets under management.

Second Phase 1987-1993 (Entry of Public Sector Funds)

1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987 followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990. At the end of 1993, the mutual fund industry had assets under management of Rs.47,004 crores.

15

Third Phase 1993-2003 (Entry of Private Sector Funds)

With the entry of private sector funds in 1993, a new era started in the Indian mutual fund industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in which the first Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund) Regulations 1996. The number of mutual fund houses went on increasing, with many foreign mutual funds setting up funds in India and also the industry has witnessed several mergers and acquisitions. As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805 crores. The Unit Trust of India with Rs.44,541 crores of assets under management was way ahead of other mutual funds.

Fourth Phase since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs.29,835 crores as at the end of January 2003, representing broadly, the assets of US 64 scheme, assured return and certain other schemes. The Specified Undertaking of Unit Trust of India, functioning under an administrator and under the rules framed by Government of India and does not come under the purview of the Mutual Fund Regulations. 16 The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile

UTI which had in March 2000 more than Rs.76,000 crores of assets under management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking place among different private sector funds, the mutual fund industry has entered its current phase of consolidation and growth. As at the end of September, 2004, there were 29 funds, which manage assets of Rs.153108 crores under 421 schemes. The graph indicates the growth of assets over the years.

GROWTH IN ASSETS UNDER MANAGEMENT

Erstwhile UTI was bifurcated into UTI Mutual Fund and the Specified Undertaking of the Unit Trust of India effective from February 2003. The Assets under management of the Specified Undertaking of the Unit Trust of India has therefore been excluded from the total assets of the industry as a whole from February 2003 onward 17

INDUSTRY PROFILE

A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. The flow chart below describes broadly the working of a mutual fund:

Mutual Fund Operation Flow Chart Fig-1

18

Organizations Of Mutual Funds:

There are many entities involved and the diagram below illustrates the organiza tional set up of a mutual fund

Organization of a Mutual Fund Fig-2

ADVANTAGES OF MUTUAL FUNDS: The advantages of investing in a Mutual Fund are:

Professional Management Diversification Convenient and Flexibility Low Costs and Transparency Liquidity Choice of schemes Tax benefits Well regulated 19

Disadvantage Of Mutual Funds:

No Tailor Made Portfolio Restrictive Gains Risk

Types of Mutual Funds: Wide varieties of Mutual Fund Schemes exist to cater to the needs such as financial position, risk tolerance and return expectations etc. The table below gives an overview into the existing types of schemes in the Industry Mutual Fund Schemes: By Structure Open-ended Schemes Closed-ended Schemes Interval Schemes

By Investment
Growth Schemes Income Schemes Balanced Schemes Money Market Schemes

Other Schemes
Tax saving schemes Special Schemes 1. Index Schemes 2. Sector Special Schemes 20

COMPANY PROFILE

VISION To be a dominant player in the Indian mutual fund space, recognized for its high levels of ethical and professional conduct and a commitment towards enhancing investor interests. SPONSORS Housing Development Finance Corporation Limited (HDFC) HDFC was incorporated in 1977 as the first specialised mortgage company in India. HDFC provides financial assistance to individuals, corporates and developers for the purchase or construction of residential housing. It also provides property related services (e.g. property identification, sales services and valuation), training and consultancy. Of these activities, housing finance remains the dominant activity. HDFC has a client base of around 9.5 lac borrowers, around 1 million depositors, over 91,000 shareholders and 50,000 deposit agents, as at June 30, 2007. HDFC has raised funds from international agencies such as the World Bank, IFC (Washington), USAID, DEG, ADB and KfW, international syndicated loans, domestic term loans from banks and insurance companies, bonds and deposits. HDFC has received the highest rating for its bonds and deposits program for the twelfth year in succession. HDFC Standard Life Insurance Company Limited, promoted by HDFC was the first life insurance 21

company in the private sector to be granted a Certificate of Registration (on October 23, 2000) by the Insurance Regulatory and Development Authority to transact life insurance business in India. Standard Life Investments Limited The Standard Life Assurance Company was established in 1825 and has considerable experience in global financial markets. The company was present in the Indian life insurance market from 1847 to 1938 when agencies were set up in Kolkata and Mumbai. The company re-entered the Indian market in 1995, when an agreement was signed with HDFC to launch an insurance joint venture. On April 2006, the Board of The Standard Life Assurance Company recommended that it should demutualise and Standard Life plc float on the London Stock Exchange. At a Special General Meeting held in May voting members overwhelmingly voted in favour of this. The Court of Session in Scotland approved this in June and Standard Life plc floated on the London Stock Exchange on 10th July 2006. Standard Life Investments was launched as an investment management company in 1998. It is a wholly owned subsidiary of Standard Life Investments (Holdings) Limited, which in turn is a wholly owned subsidiary of Standard Life plc. Standard Life Investments is a leading asset management company, with approximately US$ 282 billion as at June 30, 2007, of assets under management. The company operates in the UK, Canada, Hong Kong, China, Korea, Ireland and the USA to ensure it is able to form a truly global investment view. In order to meet the different needs and risk profiles of its clients, Standard Life Investments Limited manages a diverse portfolio covering all of the major markets world-wide, which includes a range of private and public equities, 22 government and company bonds, property investments and various derivative instruments. The

company's current holdings in UK equities account for approximately 1.8% of the market capitalisation of the London Stock Exchange. MANAGEMENT : HDFC Trustee Company Limited: a company incorporated under the Companies Act, 1956 is the Trustee to the Mutual Fund vide the Trust deed dated June 8, 2000, as amended from time to time. HDFC Trustee Company Limited is a wholly owned subsidiary of HDFC Limited. HDFC Asset Management Company Limited (AMC): was incorporated under the Companies Act, 1956, on December 10, 1999, and was approved to act as an Asset Management Company for the Mutual Fund by SEBI on July 3, 2000. The registered office of the AMC is situated at Ramon House, 3rd Floor, H.T. Parekh Marg, 169, Backbay Reclamation, Churchgate, Mumbai - 400 020. In terms of the Investment Management Agreement, the Trustee has appointed HDFC Asset Management Company Limited to manage the Mutual Fund. The paid up capital of the AMC is Rs. 45.161 crore. The present equity shareholding pattern of the AMC is as follows: Particulars % of the paid up equity capital HDFC 60 Standard Life Investments Limited 40 Zurich Insurance Company (ZIC), the Sponsor of Zurich India Mutual Fund, following a review of its overall strategy, had decided to divest its Asset Management business in India.

23 The AMC had entered into an agreement with ZIC to acquire the said business, subject to

necessary regulatory approvals. On obtaining the regulatory approvals, the Schemes of Zurich India Mutual Fund has now migrated to HDFC Mutual Fund on June 19, 2003.

The AMC is managing 24 open-ended schemes of the Mutual Fund viz. HDFC Growth Fund (HGF), HDFC Balanced Fund (HBF), HDFC Income Fund (HIF), HDFC Liquid Fund (HLF), HDFC Long Term Advantage Fund (HLTAF), HDFC Children's Gift Fund (HDFC CGF), HDFC Gilt Fund (HGILT), HDFC Short Term Plan (HSTP), HDFC Index Fund, HDFC Floating Rate Income Fund (HFRIF), HDFC Equity Fund (HEF), HDFC Top 200 Fund (HT200), HDFC Capital Builder Fund (HCBF), HDFC TaxSaver (HTS), HDFC Prudence Fund (HPF), HDFC High Interest Fund (HHIF), HDFC Cash Management Fund (HCMF), HDFC MF Monthly Income Plan (HMIP), HDFC Core & Satellite Fund (HCSF), HDFC Multiple Yield Fund (HMYF), HDFC Premier Multi-Cap Fund (HPMCF), HDFC Multiple Yield Fund . Plan 2005 (HMYF-Plan 2005), HDFC Quarterly Interval Fund (HQIF) and HDFC Arbitrage Fund (HAF). The AMC is also managing 8 closed ended Schemes of the HDFC Mutual Fund viz. HDFC Long Term Equity Fund, HDFC Mid-Cap Opportunities Fund, HDFC Fixed Maturity Plans, HDFC Fixed Maturity Plans - Series II, HDFC Fixed Maturity Plans - Series III, HDFC Fixed Maturity Plans Series IV, HDFC Fixed Maturity Plans - Series V and HDFC Fixed Maturity Plans - Series VI. The AMC is also providing portfolio management / advisory services and such activities are not in conflict with the activities of the Mutual Fund. The AMC has renewed its registration 24 from SEBI vide Registration No. - PM / INP000000506 dated December 8, 2006 to act as a Portfolio Manager under the SEBI (Portfolio Managers) Regulations, 1993. The Certificate of Registration is valid from January 1, 2007 to December 31, 2009. THE TRUSTEE

HDFC Trustee Company Limited, a company incorporated under the Companies Act, 1956 is the Trustee to HDFC Mutual Fund vide the Trust deed dated June 8, 2000, as amended from time to time. HDFC Trustee Company Ltd is wholly owned subsidiary of HDFC The Board of Directors of HDFC Trustee company Limited consists of the following eminent persons. o Mr. James Aird o Mr. Anil Kumar Hirjee o Mr. Shishir K. Diwanji o Mr. Ranjan Sanghi o Mr. V. Srinivasa Rangan HDFC Asset Management Company Limited (AMC) HDFC Asset Management Company Ltd (AMC) was incorporated under the Companies Act, 1956, on December 10, 1999, and was approved to act as an Asset Management Company for the HDFC Mutual Fund by SEBI vide its letter dated June 30, 2000. The registered office of the AMC is situated at Ramon House, 3rd Floor, H.T. Parekh Marg, 169, Backbay Reclamation, Churchgate, Mumbai - 400 020. In terms of the Investment Management Agreement, the Trustee has appointed the AMC to manage the Mutual Fund. 25 As per the terms of the Investment Management Agreement, the AMC will conduct the operations of the Mutual Fund and manage assets of the schemes, including the schemes launched from time to time. The present equity shareholding pattern of the AMC is as follows:

Particulars % of the paid up equity capital Housing Development Finance Corporation Limited 60 Standard Life Investments Limited 40 Zurich Insurance Company (ZIC), the Sponsor of Zurich India Mutual Fund, following a review of its overall strategy, had decided to divest its Asset Management business in India. The AMC had entered into an agreement with ZIC to acquire the said business, subject to necessary regulatory approvals. On obtaining the regulatory approvals, the following Schemes of Zurich India Mutual Fund have migrated to HDFC Mutual Fund on June 19, 2003. These Schemes have been renamed as follows: The AMC is also managing 8 closed ended Schemes of the HDFC Mutual Fund viz. HDFC Long Term Equity Fund, HDFC Mid-Cap Opportunities Fund, HDFC Fixed Maturity Plans, HDFC Fixed Maturity Plans - Series II, HDFC Fixed Maturity Plans - Series III, HDFC Fixed Maturity Plans Series IV, HDFC Fixed Maturity Plans - Series V and HDFC Fixed Maturity Plans - Series VI. The AMC is also providing portfolio management / advisory services and such activities are not in conflict with the activities of the Mutual Fund. The AMC has renewed its registration 26 from SEBI vide Registration No. - PM / INP000000506 dated December 8, 2006 to act as a Portfolio Manager under the SEBI (Portfolio Managers) Regulations, 1993. The Certificate of Registration is valid from January 1, 2007 to December 31, 2009.

The Board of Directors of the HDFC Asset Management Company Limited (AMC) consists of the following eminent persons. o Mr. Deepak S Parekh

o Mr. N. Keith Skeoch o Mr. Keki M. Mistry o Mr Mark Connolly o Mr. Hoshang S. Billimoria o Mr. Humayun Dhanrajgir o Mr. P. M. Thampi o Dr. Deepak B Phatak o Mr Rajeshwar Raj Bajaaj o Mr. Vijay Merchant o Ms. Renu S. Karnad o Mr. Milind Barve HDFC Mutual Fund Products Schemes Equity Funds HDFC Infrastructure Fund HDFC Arbitrage Fund 27 HDFC Capital Builder Fund HDFC Core & Satellite Fund HDFC Equity Fund HDFC Growth Fund HDFC Long Term Equity Fund HDFC Premier Multi-Cap Fund HDFC Top 200 Fund

HDFC Mid-Cap Opportunities Fund HDFC Index Fund HDFC Index Fund Nifty Plan HDFC Index Fund SENSEX Plan HDFC Index Fund SENSEX Plus Plan Equity Linked Savings Scheme HDFC Long Term Advantage Fund HDFC TaxSaver Balanced Funds HDFC Balanced Fund HDFC Children's Gift Fund Investment Plan HDFC Children's Gift Fund Savings Plan HDFC Prudence Fund Debt Funds HDFC Cash Management Fund - Savings Plus Plan 28 HDFC Floating Rate Income Fund Long Term Plan HDFC Floating Rate Income Fund Short Term Plan - Retail Option HDFC Gilt Fund Short Term Plan HDFC Gilt Fund Long Term Plan HDFC High Interest Fund HDFC High Interest Fund - Short Term Plan HDFC Income Fund

HDFC MF Monthly Income Plan - Short Term Plan HDFC MF Monthly Income Plan - Long Term Plan HDFC Multiple Yield Fund HDFC Multiple Yield Fund Plan 2005 HDFC Short Term Plan HDFC Quarterly Interval Fund - Plan A HDFC Quarterly Interval Fund - Plan B HDFC Quarterly Interval Fund - Plan C Liquid Funds HDFC Cash Management Fund - Call Plan HDFC Cash Management Fund - Savings Plan HDFC Liquid Fund HDFC Liquid Fund - PREMIUM PLAN HDFC Liquid Fund - PREMIUM PLUS PLAN 29

Bombay Stock Exchange (BSE)

About the Bombay Stock Exchange

Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich heritage. Popularly known as "BSE", it was established as "The Native Share Stock Brokers Association" in 1875. It is the first stock exchange in the country to obtain permanent recognition in 1956 from the Government of India under the Securities Contracts (Regulation) Act, 1956.The Exchange's pivotal and pre-eminent role in the development of the Indian capital market is widely recognized and its index, SENSEX, is tracked worldwide. Earlier an Association of Persons (AOP), the Exchange is now a demutualised and corporative entity incorporated under the provisions of the Companies Act, 1956,

30

BSE(Corporatisation and Demutualization) Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI). With demutualization, the trading rights and ownership rights have been delinked effectively addressing concerns regarding perceived and real conflicts of interest. The Exchange is professionally managed under the overall direction of the Board of Directors. The Board comprises eminent professionals, representatives of Trading Members and the Managing Director of the

Exchange. The Board is inclusive and is designed to benefit from the participation of market intermediaries. In terms of organisation structure, the Board formulates larger policy issues and exercises over-all control. The committees constituted by the Board are broadbased. The day-to-day operations of the Exchange are managed by the Managing Director and a management team of professionals.

31

The Exchange has a nation-wide reach with a presence in 417 cities and towns of India. The systems and processes of the Exchange are designed to safeguard market integrity and enhance transparency in operations. During the year 2004-2005, the trading volumes on the Exchange showed robust growth.

The Exchange provides an efficient and transparent market for trading in equity, debt instruments and derivatives. The BSE's On Line Trading System (BOLT) is a proprietory system of the Exchange and is BS 7799-2-2002

certified. The surveillance and clearing & settlement functions of the Exchange are ISO 9001:2000 certified.

32

History of the Bombay Stock Exchange :

The Bombay Stock Exchange is known as the oldest exchange in Asia. It traces its history to the 1850s, when stockbrokers would gather under banyan trees in front of Mumbai's Town Hall. The location of these meetings changed many times, as the number of brokers constantly increased. The group eventually moved to Dalal Street in 1874 and in 1875 became an official organization known as 'The Native Share & Stock Brokers Association'. In 1956, the BSE became the first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act. The Bombay Stock Exchange developed the BSE Sensex in 1986,

giving the BSE a means to measure overall performance of the

exchange. In 2000 the BSE used this index to open its derivatives market, trading Sensex futures contracts. The development of Sensex options along with equity derivatives followed in 2001 and 2002,
expanding the BSE's trading platform. Historically an open-cry floor trading exchange, the Bombay Stock Exchange switched to an electronic trading system in 1995. It took the exchange only fifty days to make this transition. 33

OBJECTIVES AND METHODOLOGY

OBJECTIVES
Statement of the problem: The study totally attempts to know the performance of diversified funds with reference to HDFC Mutual Fund. Objectives of the Project: The various objectives of the study are Primary Objective: To evaluate the performance of diversified equity funds for the last 1 year. To find out the perception of investors towards various mutual funds options.

Secondary Objectives: To know concept of mutual fund industry in India. To get exposure about mutual fund industry To find out which funds is performing well. Study the volatility in Fidelity mutual fund for the period July-2007 to dec-2007 To measure return and risk of investing in HDFC mutual fund To measure the performance of HDFC mutual fund using Sharpes Model, Treynors Model. To find out the correlation of HDFC mutual fund To measure the fund performance for (July 2007-Dec-2007)

34

RESEARCH METHODOLOGY
Research design or research methodology is the procedure of collecting, analyzing and interpreting the data to diagnose the problem and react to the opportunity in such a way where the costs can be minimized and the desired level of accuracy can be achieved to arrive at a particular conclusion. The methodology used in the study for the completion of the project and the fulfillment of the project objectives, is as follows: Collection of Data: Data can be collected on two types 1. Primary data 2. Secondary data. Primary Data: In this method I follow a structured questionnaire and this can be taken to Investors perception towards various mutual funds schemes. Secondary data: In this method I collected the performance reports of the funds, company profile, Industry profile, fund fact sheets, journals, and some information through internet.

LIMITATIONS
ways. The study is made with in the geographical boundaries of Hyderabad only. People may not be willing to spend their time in answering the Questions. This study is restricted to Diversified funds only. Different people may interpret the same analysis in different

35

DATA ANALYSIS AND INTERPRETATION

Table:1Calculation of Risk of HDFC Tax saver Fund for the month of July-07
Date Net Asset Value Closing price S. No. Returns (y) Returns (x) ReturnsMean (ReturnsMean)^2 x^2 x*y

2-Jul-07 3-Jul-07 4-Jul-07 5-Jul-07 6-Jul-07 9-Jul-07 10-Jul-07 11-Jul-07 12-Jul-07 13-Jul-07 16-Jul-07 17-Jul-07 18-Jul-07 19-Jul-07 20-Jul-07 23-Jul-07 24-Jul-07 25-Jul-07 26-Jul-07 27-Jul-07 30-Jul-07 31-Jul-07

66.13 66.77 66.61 66.27 67.03 67.42 67.16 66.86 67.61 67.97 67.37 67.25 67.07 67.91 68.34 68.96 69.09 68.71 69.15 67.63 67.43 68.82

14664.2 6 14806.51 14880.2 4 14861.89 14964.12 15045.73 15009.88 14910.62 15092.04 15272.72 15311.22 15289.82 15301.17 15550.13 15565.5 5 15732.2 15794.92 15699.33 15776.31 15234.57 15260.91 15550.99 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Average Sum 0.98 -0.25 -0.50 1.14 0.59 -0.39 -0.44 1.11 0.54 -0.89 -0.18 -0.26 1.25 0.64 0.91 0.18 -0.55 0.65 -2.20 -0.30 2.05 0.19 4.08 6.00 0.97 0.50 -0.12 0.69 0.55 -0.24 -0.66 1.22 1.20 0.25 -0.14 0.07 1.63 0.10 1.07 0.40 -0.61 0.49 -3.43 0.17 1.90 0.78 -0.45 -0.70 0.95 0.39 -0.58 -0.63 0.92 0.34 -1.08 -0.37 -0.46 1.05 0.45 0.71 -0.02 -0.74 0.46 -2.39 -0.49 1.86 Variance Risk 0.61 0.20 0.49 0.90 0.16 0.34 0.40 0.84 0.12 1.17 0.14 0.21 1.11 0.20 0.51 0.00 0.55 0.21 5.73 0.24 3.45 0.84 0.91 0.94 0.25 0.02 0.47 0.30 0.06 0.44 1.48 1.43 0.06 0.02 0.01 2.65 0.01 1.15 0.16 0.37 0.24 11.79 0.03 3.61 Sum 25.47 19.34 0.95 -0.13 0.06 0.78 0.32 0.09 0.29 1.35 0.64 -0.22 0.03 -0.02 2.03 0.06 0.97 0.07 0.33 0.32 7.55 -0.05 3.90

36

Returns of HDFC Tax Saver Fund for the month of

Risk free Rate n*sum x y Sum x 406.09 6.00

july-07
0.06

Sum y n*sumx^2 sumx^2 Beta Returns Risk Shrpes Treynor

4.08 534.97 648.96 -3.35 0.19 0.91 0.15 -0.04

Graph:1
Graphical Representation of HDFC Tax Saver Dividend Plan and Bse Returns for the Month of JUly-07
G ha ers t t n rhH Ca a r rpc R e n i f t e D T s e a i l p ea oo F xv Di ed l n B Ru s i d P &S e r v n a E t n
30 . 0 Returns 20 . 0 10 . 0 00 . 0 1 -. 0 1 0 -. 0 2 0 -. 0 3 0 -. 0 4 0 Te i m 3 5 7 9 1 1 1 3 1 5 1 7 1 9 2 1 R rs ) e ny t u ( R rs ) e nx t u (

for the Month of July are not much affected by change in market environment, as the Beta is -3.35 which is less than the market value of Beta; the fund is not an antagonistic fund. It generated returns 0.15. It has the Sharpe ratio giving a risk Premium of 0.91 for every unit of Standard Deviation Risk. It has the Trynors ratio generating -0.04 returns above the risk free rate of return for every unit of Systematic risk. 37

Table:2Calculation of Risk of HDFC Tax saver Fund for the month of August07
Net Asset Value Closing price Returns(y ) ReturnsMean (ReturnsMean)^2

Date

S. No.

Returns(x)

x^2

x*y

1-Aug-07 2-Aug-07 3-Aug-07 6-Aug-07 7-Aug-07 8-Aug-07 9-Aug-07 10-Aug-07 13-Aug-07 14-Aug-07 16-Aug-07 17-Aug-07 20-Aug-07 21-Aug-07 22-Aug-07 23-Aug-07 24-Aug-07 27-Aug-07 28-Aug-07 29-Aug-07 30-Aug-07 31-Aug-07

66.54 67.07 67.82 66.97 67.22 68.45 67.45 66.94 67.37 67.37 64.97 64.14 65.04 63.11 63.70 63.36 64.24 65.87 66.33 66.38 66.97 67.92

14935.77 14985.7 15138.4 14903.03 14932.77 15307.98 15100.15 14868.25 15017.21 15000.91 14358.21 14141.52 14427.55 13989.11 14248.66 14163.98 14424.87 14842.38 14919.19 14993.04 15121.74 15318.6

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Average Sum

-3.30 0.79 1.11 -1.25 0.38 1.83 -1.46 -0.76 0.65 0.00 -3.57 -1.28 1.41 -2.96 0.94 -0.54 1.39 2.54 0.69 0.08 0.89 1.42 0.11 2.29

-3.96 0.33 1.02 -1.55 0.20 2.51 -1.36 -1.54 1.00 -0.11 -4.28 -1.51 2.02 -3.04 1.86 -0.59 1.84 2.89 0.52 0.50 0.86 1.30

-3.41 0.68 1.00 -1.36 0.27 1.72 -1.57 -0.87 0.54 -0.11 -3.67 -1.39 1.30 -3.07 0.83 -0.65 1.28 2.43 0.58 -0.03 0.78 1.31 Variance

11.62 0.47 1.01 1.85 0.07 2.96 2.46 0.76 0.29 0.01 13.50 1.94 1.68 9.43 0.69 0.42 1.65 5.90 0.33 0.00 0.61 1.72 2.27 1.51

15.65 0.11 1.04 2.42 0.04 6.31 1.84 2.36 1.00 0.01 18.36 2.28 4.09 9.23 3.44 0.35 3.39 8.38 0.27 0.25 0.74 1.69 Sum 67.61

13.06 0.27 1.13 1.95 0.08 4.59 1.98 1.17 0.65 0.00 15.28 1.94 2.84 9.00 1.74 0.32 2.57 7.35 0.36 0.04 0.76 1.85

2.87

Risk

55.86

38

Returns of HDFC Tax Saver Fund for the month of August07

Risk free Rate n*sum x y Sum x 1229.01 2.87 0.06

Sum y n*sumx^2 Sumx^2 Beta Returns Risk Shrpes Treynor

2.29 1487.37 4570.82 -0.40 0.11 1.51 0.03 -0.12

Graph:2 Graphical Representation of HDFC Tax Saver Dividend Plan and Bse Returns for the Month of August-07
Gpi a er sn to f r h HF Txae r h lR eet i n t e D asvr a c p a o C Di ed l n B Ru s i d P &S e r v n a E t n
40 . 0 30 . 0 Returns 20 . 0 10 . 0 00 . 0 -. 0 1 0 -. 0 2 0 -. 0 3 0 -. 0 4 0 -. 0 5 0 T e i m 1 3 5 7 9 1 1 1 3 1 5 1 7 1 9 2 1 Ru s ) er ( t ny Ru s ) er ( t nx

It has the Sharpe ratio giving a risk Premium of 1.51 for every unit of Standard Deviation Risk.It has the Trynors ratio generating -0.12 returns above the risk free rate of return for every unit of Systematic risk. The Returns generated by HDFC Tax Saver Dividend Fund for the Month of August are not much affected by change in market surroundings, as the Beta is -0.40 which is less than the market value of Beta; the fund is not a destructive fund. It generated returns 0.03. 39

Table:3Calculation of Risk of HDFC Tax saver Fund for the month of September07
Date Net Asset Value Closing price S. No. Return s(y) Returns (x) Returns -Mean (ReturnsMean)^2 x^2 x*y

3-Sep-07 4-Sep-07 5-Sep-07 6-Sep-07 7-Sep-07 10-Sep-07 11-Sep-07 12-Sep-07 13-Sep-07 14-Sep-07 17-Sep-07 18-Sep-07 19-Sep-07 20-Sep-07 21-Sep-07 24-Sep-07 25-Sep-07 26-Sep-07 27-Sep-07 28-Sep-07

68.30 68.38 68.22 68.77 68.91 69.02 68.79 68.66 69.13 68.74 68.62 69.28 70.96 71.35 71.95 72.67 72.50 72.80 73.16 73.72

15422.05 15465.4 15446.15 15616.31 15590.42 15596.83 15542.77 15505.36 15614.44 15603.8 15504.43 15669.12 16322.75 16347.95 16564.23 16845.83 16899.54 16921.39 17150.56 17291.1

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Averag e Sum

0.56 0.12 -0.24 0.81 0.20 0.17 -0.34 -0.18 0.69 -0.57 -0.18 0.97 2.43 0.55 0.84 1.00 -0.23 0.40 0.50 0.76 0.41 8.25

0.68 0.28 -0.12 1.10 -0.17 0.04 -0.35 -0.24 0.70 -0.07 -0.64 1.06 4.17 0.15 1.32 1.70 0.32 0.13 1.35 0.82

0.15 -0.29 -0.65 0.40 -0.21 -0.24 -0.76 -0.60 0.28 -0.98 -0.59 0.55 2.01 0.14 0.43 0.59 -0.65 -0.01 0.09 0.35 Variance

0.02 0.09 0.43 0.16 0.04 0.06 0.57 0.36 0.08 0.96 0.35 0.31 4.06 0.02 0.19 0.35 0.42 0.00 0.01 0.12 0.43 0.66

0.46 0.08 0.02 1.21 0.03 0.00 0.12 0.06 0.49 0.00 0.41 1.13 17.40 0.02 1.75 2.89 0.10 0.02 1.83 0.67 Sum 28.69

0.38 0.03 0.03 0.89 -0.03 0.01 0.12 0.04 0.48 0.04 0.12 1.03 10.12 0.08 1.12 1.71 -0.07 0.05 0.68 0.63

12.25

Risk

17.44

40

Returns of HDFC Tax Saver Fund for the month of September-07

Risk free Rate n*sum x y Sum x 348.89 12.25 0.06

Sum y n*sumx^2 Sumx^2 Beta Returns Risk Shrpes Treynor

8.25 573.88 823.35 -0.99 0.41 0.66 0.54 -0.35

Graph:3 Graphical Representation of HDFC Tax Saver Dividend Plan and Bse Returns for the Month of September-07
Gp c R rs t t n rhH Ca a r r ha e e n i f t e D T s e a i l p ea oo F xv Di ed l n B Ru s i d P &S e r v n a E t n
50 . 0 40 . 0 30 . 0 20 . 0 10 . 0 00 . 0 1 -. 0 1 0 Te i m 3 5 7 9 1 1 1 3 1 5 1 7 1 9 R rs ) e ny t u ( R rs ) e nx t u (

Returns

It has the Trynors ratio generating -0.35 returns above the risk free rate of return for every unit of Systematic risk. It has the Sharpe ratio giving a risk Premium of 0.66 for every unit of Standard Deviation Risk.The Returns generated by HDFC Tax Saver Dividend Fund for the Month of September are not much affected by change in market environment, as the Beta is -0.99 which is less than the market value of Beta; the fund is not an aggressive fund. It generated returns 0.54. 41

Table:4 Calculation of Risk of HDFC Tax saver Fund for the month of October-07
Net Asset Value 73.82 Closing price Returns(y ) ReturnsMean (ReturnsMean)^2

Date 1-Oct-07

S. No. 1

Returns(x)

x^2

x*y

17328.62

0.14

0.22

-0.48

0.23

0.05

0.03

3-Oct-07 4-Oct-07 5-Oct-07 8-Oct-07 9-Oct-07 10-Oct-07 11-Oct-07 12-Oct-07 15-Oct-07 16-Oct-07 17-Oct-07 18-Oct-07 19-Oct-07 22-Oct-07 23-Oct-07 24-Oct-07 25-Oct-07 26-Oct-07 29-Oct-07 30-Oct-07 31-Oct-07

74.66 74.71 74.87 73.64 75.74 76.83 77.40 76.44 79.08 79.07 78.16 75.91 73.92 73.98 77.67 78.50 79.71 81.97 84.63 83.89 83.59

17847.04 17777.14 17773.36 17491.39 18280.24 18658.25 18814.07 18419.04 19058.67 19051.86 18715.82 17998.39 17559.98 17613.99 18492.84 18512.91 18770.89 19243.17 19977.67 19783.51 19837.99

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Average Sum

1.14 0.07 0.22 -1.65 2.85 1.44 0.75 -1.25 3.46 -0.02 -1.14 -2.88 -2.62 0.07 4.99 1.07 1.55 2.83 3.25 -0.87 -0.36 0.61 12.89

2.99 -0.39 -0.02 -1.59 4.51 2.07 0.84 -2.10 3.47 -0.04 -1.76 -3.83 -2.44 0.31 4.99 0.11 1.39 2.52 3.82 -0.97 0.28

0.52 -0.55 -0.39 -2.26 2.24 0.83 0.13 -1.86 2.85 -0.63 -1.76 -3.49 -3.23 -0.54 4.38 0.45 0.94 2.21 2.64 -1.49 -0.98 Variance

0.27 0.30 0.15 5.10 5.00 0.68 0.02 3.47 8.10 0.40 3.09 12.21 10.44 0.30 19.18 0.20 0.88 4.90 6.94 2.21 0.95 4.04 2.01

8.95 0.15 0.00 2.52 20.34 4.28 0.70 4.41 12.06 0.00 3.11 14.69 5.93 0.09 24.90 0.01 1.94 6.33 14.57 0.94 0.08 Sum 126.00

3.40 -0.03 0.00 2.61 12.85 2.98 0.62 2.62 12.02 0.00 2.02 11.04 6.38 0.02 24.92 0.12 2.16 7.11 12.40 0.85 -0.10

14.15

Risk

103.97

42

Returns of HDFC Tax Saver Fund for the month of October-07

Risk free Rate n*sum x y Sum x Sum y 2287.37 14.15 12.89 0.06

n*sumx^2 Sumx^2 Beta Returns Risk Shrpes Treynor

2772.10 15877.18 -0.16 0.61 2.01 0.28 -3.45

Graph-4 Graphical Representation of HDFC Tax Saver Dividend Plan and Bse Returns for the Month of October-07
G h l ee n i n rh D T s e rp a ps tt f te F a a r a i Rr ea o H C x v c o D e P & Eers ii n ln B R n v da d S t u
6 .0 0 Returns 5 .0 0 4 .0 0 3 .0 0 2 .0 0 1 .0 0 0 .0 0 -. 0 1 0 -. 0 2 0 -. 0 3 0 -. 0 4 0 -. 0 5 0 Te i m 1 3 5 7 9 1 1 1 3 1 5 1 7 1 9 2 1 R rs) e ny t ( u R rs) e nx t ( u

The Returns generated by HDFC Tax Saver Dividend Fund for the Month of October are not much affected by change in market conditions, as the Beta is -0.16 which is less than the market value of Beta; the fund is not a forceful fund. It generated returns 0.28.It has the Sharpe ratio giving a risk Premium of 2.01 for every unit of Standard Deviation Risk. It has the Trynors ratio generating -3.45 returns above the risk free rate of return for every unit of Systematic risk. 43

Table-5 Calculation of Risk of HDFC Tax saver Fund for the month of November-07
Date 1-Nov-07 2-Nov-07 5-Nov-07 Net Asset Value 83.21 83.93 83.10 Closing price S. No. 1 2 3 Returns(y ) Returns(x) ReturnsMean (ReturnsMean)^2 x^2 x*y

19724.35 19976.23 19590.78

-0.45 0.87 -1.00

-0.57 1.28 -1.93

-0.42 0.90 -0.96

0.17 0.81 0.92

0.33 1.63 3.72

0.26 1.11 1.92

6-Nov-07 7-Nov-07 8-Nov-07 12-Nov-07 13-Nov-07 14-Nov-07 15-Nov-07 16-Nov-07 19-Nov-07 20-Nov-07 21-Nov-07 22-Nov-07 23-Nov-07 26-Nov-07 27-Nov-07 28-Nov-07 29-Nov-07 30-Nov-07

82.28 81.99 80.75 80.12 81.30 84.20 84.61 84.64 85.70 83.75 80.43 79.69 80.45 81.99 81.78 80.92 80.97 82.75

19400.67 19289.83 19058.93 18737.27 19035.48 19929.06 19784.89 19698.36 19633.36 19280.8 18602.62 18526.32 18852.87 19247.54 19127.73 18938.87 19003.26 19363.19

4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Average Sum

-0.98 -0.36 -1.51 -0.77 1.47 3.58 0.49 0.03 1.25 -2.27 -3.96 -0.93 0.96 1.91 -0.25 -1.06 0.07 2.19 -0.04 -0.74

-0.97 -0.57 -1.20 -1.69 1.59 4.69 -0.72 -0.44 -0.33 -1.80 -3.52 -0.41 1.76 2.09 -0.62 -0.99 0.34 1.89

-0.95 -0.32 -1.48 -0.74 1.50 3.61 0.52 0.07 1.28 -2.24 -3.93 -0.89 0.99 1.94 -0.21 -1.03 0.11 2.23 Variance

0.90 0.10 2.19 0.55 2.26 13.05 0.27 0.00 1.64 5.01 15.41 0.79 0.99 3.78 0.05 1.05 0.01 4.96 2.62 1.62

0.94 0.33 1.43 2.85 2.53 22.04 0.52 0.19 0.11 3.22 12.37 0.17 3.11 4.38 0.39 0.97 0.12 3.59 Sum 64.94

0.95 0.20 1.81 1.31 2.34 16.79 -0.35 -0.01 -0.41 4.08 13.93 0.38 1.69 4.00 0.15 1.05 0.02 4.15

-2.10

Risk

55.37

44

Returns of HDFC Tax Saver Fund for the month of November-07

Risk free Rate n*sum x y Sum x Sum y n*sumx^2 1162.78 -2.10 -0.74 1363.81 0.06

sumx^2 Beta Returns Risk Shrpes Treynor

4217.66 -0.41 -0.04 1.62 -0.06 0.23

Graph-5
Graphical Representation of HDFC Tax Saver Dividend Plan and Bse Returns for the Month of November-07
G h l e e nt n rh D T s e rpc Rrs t i f t e F a a r a i a p ea o H C x v o Dd dl n B R rs i i e P & Ee n v n a S t u
60 . 0 Returns 50 . 0 40 . 0 30 . 0 20 . 0 10 . 0 00 . 0 -. 0 1 0 -. 0 2 0 -. 0 3 0 -. 0 4 0 -. 0 5 0 Te i m 1 3 5 7 9 1 1 1 3 1 5 1 7 1 9 2 1 R rs ) e ny t ( u R rs ) e nx t ( u

It has the Sharpe ratio giving a risk Premium of 1.62 for every unit of Standard Deviation Risk. It has the Trynors ratio generating 0.23 returns above the risk free rate of return for every unit of Systematic risk. The Returns generated by HDFC Tax Saver Dividend Fund for the Month of November are not much affected by change in market state of affairs, as the Beta is -0.41 which is less than the market value of Beta; the fund is not a destructive fund. It generated returns -0.06. 45

Table-6 Calculation of Risk of HDFC Tax saver Fund for the month of December-07
Date 3-Dec-07 4-Dec-07 Net Asset Value 83.62 83.52 Closing price S. No. 1 2 Returns(y ) Returns(x) ReturnsMean (ReturnsMean)^2 x^2 x*y

19603.41 19529.5

1.06 -0.13

1.24 -0.38

0.85 -0.34

0.73 0.11

1.54 0.14

1.31 0.05

5-Dec-07 6-Dec-07 7-Dec-07 10-Dec-07 11-Dec-07 12-Dec-07 13-Dec-07 14-Dec-07 17-Dec-07 18-Dec-07 19-Dec-07 20-Dec-07 24-Dec-07 26-Dec-07 27-Dec-07 28-Dec-07 31-Dec-07

84.57 84.96 84.88 84.94 86.04 86.22 85.66 85.48 82.47 82.20 82.12 82.14 83.97 85.27 85.21 85.40 85.92

19738.07 19795.87 19966 19930.68 20290.89 20375.87 20104.39 20030.83 19261.35 19079.64 19091.96 19162.57 19854.12 20192.52 20216.72 20206.95 20286.99

3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Average Sum

1.26 0.46 -0.10 0.08 1.29 0.21 -0.65 -0.21 -3.53 -0.32 -0.10 0.03 2.23 1.55 -0.08 0.23 0.62 0.20 3.89

1.07 0.29 0.86 -0.18 1.81 0.42 -1.33 -0.37 -3.84 -0.94 0.06 0.37 3.61 1.70 0.12 -0.05 0.40

1.06 0.26 -0.30 -0.13 1.09 0.01 -0.85 -0.42 -3.73 -0.52 -0.31 -0.18 2.03 1.34 -0.28 0.02 0.41 Variance

1.12 0.07 0.09 0.02 1.18 0.00 0.73 0.17 13.92 0.27 0.10 0.03 4.11 1.81 0.08 0.00 0.17 1.30 1.14

1.14 0.09 0.74 0.03 3.27 0.18 1.78 0.13 14.76 0.89 0.00 0.14 13.02 2.91 0.01 0.00 0.16 Sum 40.92

1.35 0.14 -0.08 -0.01 2.33 0.09 0.87 0.08 13.54 0.30 -0.01 0.01 8.05 2.64 -0.01 -0.01 0.24

5.10

Risk

30.88

46

Returns of HDFC Tax Saver Fund for the month of December-07

Risk free Rate n*sum x y Sum x Sum y n*sumx^2 sumx^2 586.74 5.10 3.89 777.46 1674.34 0.06

Beta Returns Risk Shrpes Treynor

-0.63 0.20 1.14 0.13 -0.23

Graph-6
Graphical Representation of HDFC Tax Saver Dividend Plan and Bse Returns for the Month of December-07
G ha e e nt n rhH C x v rpc R rs t i f t e D T s e a i l p ea oo F aar Dd dl n B R rs i i e P &S e n v n a E t u
40 . 0 30 . 0 Returns 20 . 0 10 . 0 00 . 0 -. 0 1 0 -. 0 2 0 -. 0 3 0 -. 0 4 0 -. 0 5 0 Te i m 1 3 5 7 9 1 1 1 3 1 5 1 7 1 9 R rs ) e ny t u ( R rs ) e nx t u (

It has the Trynors ratio generating -0.23 returns above the risk free rate of return for every unit of Systematic risk. It has the Sharpe ratio giving a risk Premium of 1.14 for every unit of Standard Deviation Risk. The Returns generated by HDFC Tax Saver Dividend Fund for the Month of December are not much affected by change in market conditions, as the Beta is -0.63 which is less than the market value of Beta; the fund is not a belligerent fund. It generated returns 0.13. 47

Table:7 Calculation of Risk of HDFC Monthly Income Plan Long term Plan-Growth option
for the month of July-07.
Date 2-Jul-07 3-Jul-07 4-Jul-07 Net Asset Value 15.48 15.55 15.54 Closing price S. No. Returns(y ) Returns(x) ReturnsMean (ReturnsMean)^2 x^2 x*y

14664.3 14806.5 14880.2

1 2

0.43 -0.03

0.97 0.50

0.34 -0.11

0.12 0.01

0.94 0.25

0.41 0.01

5-Jul-07 6-Jul-07 9-Jul-07 10-Jul-07 11-Jul-07 12-Jul-07 13-Jul-07 16-Jul-07 17-Jul-07 18-Jul-07 19-Jul-07 20-Jul-07 23-Jul-07 24-Jul-07 25-Jul-07 26-Jul-07 27-Jul-07 30-Jul-07 31-Jul-07

15.51 15.53 15.59 15.58 15.61 15.67 15.67 15.7 15.67 15.68 15.71 15.72 15.77 15.78 15.74 15.74 15.68 15.69 15.76

14861.9 14964.1 15045.7 15009.9 14910.6 15092 15272.7 15311.2 15289.8 15301.2 15550.1 15565.6 15732.2 15794.9 15699.3 15776.3 15234.6 15260.9 15551

3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Average Sum

-0.25 0.13 0.42 -0.06 0.16 0.40 -0.01 0.20 -0.16 0.06 0.19 0.07 0.33 0.01 -0.25 0.05 -0.37 0.03 0.45 0.08 1.78

-0.12 0.69 0.55 -0.24 -0.66 1.22 1.20 0.25 -0.14 0.07 1.63 0.10 1.07 0.40 -0.61 0.49 -3.43 0.17 1.90

-0.33 0.05 0.33 -0.15 0.08 0.32 -0.10 0.12 -0.25 -0.03 0.10 -0.02 0.25 -0.08 -0.34 -0.04 -0.46 -0.05 0.37 Variance

0.11 0.00 0.11 0.02 0.01 0.10 0.01 0.01 0.06 0.00 0.01 0.00 0.06 0.01 0.11 0.00 0.21 0.00 0.13 0.05 0.23

0.02 0.47 0.30 0.06 0.44 1.48 1.43 0.06 0.02 0.01 2.65 0.01 1.15 0.16 0.37 0.24 11.79 0.03 3.61

0.03 0.09 0.23 0.01 0.11 0.49 0.02 0.05 0.02 0.00 0.30 0.01 0.36 0.00 0.15 0.02 1.28 0.01 0.86

Sum 25.47 4.20

6.00

Risk

48

Returns of HDFC Monthly Income Plan long term plan growth option for the month of july-07
Risk free Rate n*sum x y Sum x Sum y n*sumx^2 Sumx^2 88.12 6.00 1.78 534.97 648.96 0.06

Beta Returns Risk Shrpes Treynor

-0.68 0.08 0.23 0.11 -0.04

Graph:7
Graphical Representation of HDFC Monthly Income Plan Long Term Plan Growth option and Bse Returns for the Month of July-07
G ha e e nt n rh H Coh rpc R rs t i f t e D Mt l a i l p ea oo F ny I c e l no T maG t Oo& n m aL ge Pn r w p n o P n r l oh t i B R rs S e n E t u
30 . 0 0 Returns 20 . 0 0 10 . 0 0 00 . 0 0 -. 0 1 0 0 -. 0 2 0 0 -. 0 3 0 0 -. 0 4 0 0 Te i m 1 3 5 7 9 1 1 1 3 1 5 1 7 1 9 2 1 R rs ) e ny t u ( R rs ) e nx t u (

The Returns generated by HDFC Monthly Income Plan-Long Term Plan-Growth option for the Month of July are not much affected by change in market situation, as the Beta is -0.68 which is less than the market value of Beta; the fund is not an aggressive fund. It generated returns 0.11.It has the Sharpe ratio giving a risk Premium of 0.23 for every unit of Standard Deviation Risk. It has the Trynors ratio generating -0.04 returns above the risk free rate of return for every unit of Systematic risk.

49 Table:8 Calculation of Risk of HDFC Monthly Income Plan Long term Plan-Growth option for the month of August-07

Date 1-Aug-07 2-Aug-07 3-Aug-07 6-Aug-07 7-Aug-07 8-Aug-07 9-Aug-07 10-Aug-07 13-Aug-07 14-Aug-07 16-Aug-07 17-Aug-07 20-Aug-07 21-Aug-07 22-Aug-07 23-Aug-07 24-Aug-07 27-Aug-07 28-Aug-07 29-Aug-07 30-Aug-07 31-Aug-07

Net Asset Value 15.64 15.7 15.75 15.73 15.74 15.78 15.68 15.64 15.68 15.68 15.56 15.5 15.59 15.45 15.5 15.46 15.51 15.62 15.65 15.65 15.69 15.78

Closing price

S. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Average Sum

Returns(y )

Returns(x)

ReturnsMean

(ReturnsMean)^2

x^2

x*y

14935.8 14985.7 15138.4 14903 14932.8 15308 15100.2 14868.3 15017.2 15000.9 14358.2 14141.5 14427.6 13989.1 14248.7 14164 14424.9 14842.4 14919.2 14993 15121.7 15318.6

-0.76 0.41 0.30 -0.15 0.10 0.27 -0.64 -0.28 0.23 0.05 -0.81 -0.36 0.54 -0.84 0.27 -0.25 0.34 0.74 0.19 -0.04 0.29 0.59 0.01 0.17

-3.96 0.33 1.02 -1.55 0.20 2.51 -1.36 -1.54 1.00 -0.11 -4.28 -1.51 2.02 -3.04 1.86 -0.59 1.84 2.89 0.52 0.50 0.86 1.30

-0.77 0.40 0.29 -0.16 0.09 0.27 -0.65 -0.29 0.22 0.04 -0.81 -0.37 0.53 -0.85 0.26 -0.26 0.33 0.73 0.18 -0.05 0.28 0.58 Variance

0.59 0.16 0.08 0.03 0.01 0.07 0.42 0.08 0.05 0.00 0.66 0.13 0.29 0.72 0.07 0.07 0.11 0.54 0.03 0.00 0.08 0.34 0.21 0.45

15.65 0.11 1.04 2.42 0.04 6.31 1.84 2.36 1.00 0.01 18.36 2.28 4.09 9.23 3.44 0.35 3.39 8.38 0.27 0.25 0.74 1.69 Sum 83.26

3.01 0.14 0.30 0.24 0.02 0.69 0.87 0.44 0.23 -0.01 3.45 0.54 1.10 2.56 0.50 0.15 0.62 2.14 0.10 -0.02 0.25 0.77

-1.09

Risk

18.07

50

Returns of HDFC Monthly Income Plan long term plan growth option for the month of August-07
Risk free Rate n*sum x y 397.52 0.06

Sum x Sum y n*sumx^2 sumx^2 Beta Returns Risk Shrpes Treynor

-1.09 0.17 1831.70 6932.05 -0.08 0.01 0.45 -0.12 0.67

Graph:8 Graphical Representation of HDFC Monthly Income Plan Long Term Plan Growth option and Bse Returns for the Month of August-07
G ha ers t t n rh H C o h rpc R e n i f t e D Mt l a i l p ea oo F ny I cm l no T ma Gw O o& n e a L ge Pn r t p n o P n r l oh t i B Ru s S er E t n
40 . 0 Returns 30 . 0 20 . 0 10 . 0 00 . 0 -. 0 1 0 -. 0 2 0 -. 0 3 0 -. 0 4 0 -. 0 5 0 Te i m 1 3 5 7 9 1 1 1 3 1 5 1 7 1 9 2 1 R rs ) e ny t u ( R rs ) e nx t u (

It has the Sharpe ratio giving a risk Premium of 0.45 for every unit of Standard Deviation Risk.It has the Trynors ratio generating 0.67 returns above the risk free rate of return for every unit of Systematic risk. The Returns generated by HDFC Monthly Income Plan-Long Term Plan-Growth option for the Month of August are not much affected by change in market surroundings, as the Beta is -0.08 which is less than the market value of Beta; the fund is not an aggressive fund. It generated returns -0.12. 51

Table-9 Calculation of Risk of HDFC Monthly Income Plan Long term Plan-Growth
option for the month of Sepetember-07

Date 3-Sep-07 4-Sep-07 5-Sep-07 6-Sep-07 7-Sep-07 10-Sep-07 11-Sep-07 12-Sep-07 13-Sep-07 14-Sep-07 17-Sep-07 18-Sep-07 19-Sep-07 20-Sep-07 21-Sep-07 24-Sep-07 25-Sep-07 26-Sep-07 27-Sep-07 28-Sep-07

Net Asset Value 15.82 15.82 15.82 15.86 15.86 15.87 15.85 15.84 15.86 15.82 15.81 15.86 15.94 15.94 15.96 15.98 15.99 16.02 16.05 16.11

Closing price

S. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Average Sum

Returns(y )

Returns(x)

ReturnsMean

(ReturnsMean)^2

x^2

x*y

15422.1 15465.4 15446.2 15616.3 15590.4 15596.8 15542.8 15505.4 15614.4 15603.8 15504.4 15669.1 16322.8 16348 16564.2 16845.8 16899.5 16921.4 17150.6 17291.1

0.22 0.02 -0.02 0.24 0.02 0.06 -0.10 -0.05 0.08 -0.21 -0.06 0.31 0.48 -0.02 0.13 0.17 0.05 0.17 0.19 0.41 0.10 2.08

0.68 0.28 -0.12 1.10 -0.17 0.04 -0.35 -0.24 0.70 -0.07 -0.64 1.06 4.17 0.15 1.32 1.70 0.32 0.13 1.35 0.82

0.11 -0.09 -0.12 0.14 -0.09 -0.05 -0.20 -0.16 -0.03 -0.32 -0.16 0.21 0.38 -0.12 0.03 0.06 -0.06 0.06 0.09 0.31 Variance

0.01 0.01 0.01 0.02 0.01 0.00 0.04 0.02 0.00 0.10 0.03 0.04 0.14 0.02 0.00 0.00 0.00 0.00 0.01 0.10 0.03 0.17

0.46 0.08 0.02 1.21 0.03 0.00 0.12 0.06 0.49 0.00 0.41 1.13 17.40 0.02 1.75 2.89 0.10 0.02 1.83 0.67

0.15 0.01 0.00 0.26 0.00 0.00 0.03 0.01 0.06 0.01 0.04 0.33 2.02 0.00 0.17 0.29 0.01 0.02 0.26 0.34

Sum 28.69 4.01

12.93

Risk

52

Returns of HDFC Monthly Income Plan long term plan growth option for the month of Sepetember-07
Risk free Rate n*sum x y 80.18 0.06

Sum x Sum y n*sumx^2 sumx^2 Beta Returns Risk Shrpes Treynor

12.93 2.08 573.88 823.35 -0.21 0.10 0.17 0.26 -0.21

Graph-9
Graphical Representation of HDFC Monthly Income Plan Long Term Plan Growth option and Bse Returns for the Month of September-07
G h l e e nt n rh H Coh rpc Rrs t i f t e D Mt l a i a p ea o o F ny I c el no Tm nrwOo& n m aL ge P G t p n o P n r l a oh t i B R rs S en E t u
50 . 0 Returns 40 . 0 30 . 0 20 . 0 10 . 0 00 . 0 1 -. 0 1 0 Te i m 3 5 7 9 1 1 1 3 1 5 1 7 1 9 R rs ) e ny t ( u R rs ) e nx t ( u

It has the Trynors ratio generating -0.21 returns above the risk free rate of return for every unit of Systematic risk. It has the Sharpe ratio giving a risk Premium of 0.17 for every unit of Standard Deviation Risk. The Returns generated by HDFC Monthly Income Plan-Long Term Plan-Growth option for the Month of September are not much affected by change in market conditions, as the Beta is -0.21 which is less than the market value of Beta; the fund is not an antagonistic fund. It generated returns 0.26. 53

Table-10 Calculation of Risk of HDFC Monthly Income Plan Long term Plan-Growth
option for the month of October-07

Date 1-Oct-07 3-Oct-07 4-Oct-07 5-Oct-07 8-Oct-07 9-Oct-07 10-Oct-07 11-Oct-07 12-Oct-07 15-Oct-07 16-Oct-07 17-Oct-07 18-Oct-07 19-Oct-07 22-Oct-07 23-Oct-07 24-Oct-07 25-Oct-07 26-Oct-07 29-Oct-07 30-Oct-07 31-Oct-07

Net Asset Value 16.15 16.19 16.14 16.16 16.07 16.14 16.17 16.22 16.17 16.28 16.32 16.26 16.18 16.1 16.14 16.3 16.43 16.49 16.57 16.66 16.66 16.74

Closing price

S. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Average Sum

Returns(y )

Returns(x)

ReturnsMean

(ReturnsMean)^2

x^2

x*y

17328.6 17847 17777.1 17773.4 17491.4 18280.2 18658.3 18814.1 18419 19058.7 19051.9 18715.8 17998.4 17560 17614 18492.8 18512.9 18770.9 19243.2 19977.7 19783.5 19838

0.21 0.23 -0.28 0.15 -0.55 0.38 0.18 0.34 -0.30 0.69 0.21 -0.36 -0.47 -0.54 0.29 0.98 0.78 0.41 0.49 0.52 0.01 0.50 0.18 3.86

0.22 2.99 -0.39 -0.02 -1.59 4.51 2.07 0.84 -2.10 3.47 -0.04 -1.76 -3.83 -2.44 0.31 4.99 0.11 1.39 2.52 3.82 -0.97 0.28

0.04 0.06 -0.46 -0.03 -0.73 0.21 0.01 0.16 -0.47 0.52 0.04 -0.53 -0.65 -0.71 0.11 0.80 0.61 0.23 0.32 0.34 -0.17 0.33 Variance

0.00 0.00 0.21 0.00 0.53 0.04 0.00 0.03 0.23 0.27 0.00 0.28 0.42 0.51 0.01 0.64 0.37 0.05 0.10 0.12 0.03 0.11 0.18 0.42

0.05 8.95 0.15 0.00 2.52 20.34 4.28 0.70 4.41 12.06 0.00 3.11 14.69 5.93 0.09 24.90 0.01 1.94 6.33 14.57 0.94 0.08 Sum 126.05

0.05 0.70 0.11 0.00 0.88 1.72 0.37 0.28 0.63 2.41 -0.01 0.63 1.82 1.31 0.09 4.87 0.08 0.57 1.24 1.99 -0.01 0.14

14.36

Risk

19.86

54

Returns of HDFC Monthly Income Plan long term plan growth option for the month of October-07
Risk free Rate n*sum x y 436.91 0.06

Sum x Sum y n*sumx^2 sumx^2 Beta Returns Risk Shrpes Treynor

14.36 3.86 2773.14 15889.05 -0.03 0.18 0.42 0.27 -3.97

Graph-10 Graphical Representation of HDFC Monthly Income Plan Long Term Plan Growth option and Bse Returns for the Month of October-07
G h l ee n i n rhH C nl rp a ps tt f te D Mh a i Rr ea o c o F o y t I c eln n e P G t O n n m aL g r lnrw p & o P o Tm a oh t i o B R rs S en Et u
6 .0 0 Returns 5 .0 0 4 .0 0 3 .0 0 2 .0 0 1 .0 0 0 .0 0 -. 0 1 0 -. 0 2 0 -. 0 3 0 -. 0 4 0 -. 0 5 0 Te i m 1 3 5 7 9 1 1 1 3 1 5 1 7 1 9 2 1 Rrs) en t ( u y Rrs) en t ( u x

The Returns generated by HDFC Monthly Income Plan-Long Term Plan-Growth option for the Month of October are not much affected by change in market surroundings, as the Beta is -0.03 which is less than the market value of Beta; the fund is not an insistent fund. It generated returns 0.27. It has the Sharpe ratio giving a risk Premium of 0.42 for every unit of Standard Deviation Risk.It has the Trynors ratio generating -3.97 returns above the risk free rate of return for every unit of Systematic risk. 55

Table-11 Calculation of Risk of HDFC Monthly Income Plan Long term PlanGrowth option for the month of November-07

Date 1-Nov-07 2-Nov-07 5-Nov-07 6-Nov-07 7-Nov-07 8-Nov-07 12-Nov-07 13-Nov-07 14-Nov-07 15-Nov-07 16-Nov-07 19-Nov-07 20-Nov-07 21-Nov-07 22-Nov-07 23-Nov-07 26-Nov-07 27-Nov-07 28-Nov-07 29-Nov-07 30-Nov-07

Net Closing S. No. Asset price Value 16.68 19724.4 1 16.69 16.66 16.6 16.59 16.57 16.55 16.63 16.71 16.74 16.8 16.91 16.83 16.66 16.65 16.68 16.73 16.72 16.7 16.7 16.81

Returns Returns Returns- (Returns (y) (x) Mean Mean)^2

x^2

x*y

-0.36 0.04 -0.17 -0.34 -0.10 -0.13 -0.12 0.49 0.51 0.19 0.32 0.66 -0.49 -1.00 -0.06 0.19 0.32 -0.05 -0.17 0.05 0.61 0.02 0.38

-0.57 1.28 -1.93 -0.97 -0.57 -1.20 -1.69 1.59 4.69 -0.72 -0.44 -0.33 -1.80 -3.52 -0.41 1.76 2.09 -0.62 -0.99 0.34 1.89

-0.38 0.02 -0.19 -0.36 -0.12 -0.15 -0.13 0.47 0.49 0.17 0.30 0.64 -0.50 -1.02 -0.07 0.17 0.30 -0.07 -0.19 0.03 0.59 Variance

0.15 0.00 0.04 0.13 0.01 0.02 0.02 0.22 0.24 0.03 0.09 0.41 0.25 1.04 0.01 0.03 0.09 0.00 0.04 0.00 0.35

0.33 1.63 3.72 0.94 0.33 1.43 2.85 2.53 22.04 0.52 0.19 0.11 3.22 12.37 0.17 3.11 4.38 0.39 0.97 0.12 3.59

0.21 0.05 0.34 0.33 0.06 0.16 0.19 0.78 2.40 -0.14 -0.14 -0.22 0.87 3.52 0.02 0.33 0.66 0.03 0.17 0.02 1.16

19976.2 19590.8 19400.7 19289.8 19058.9 18737.3 19035.5 19929.1 19784.9 19698.4 19633.4 19280.8 18602.6 18526.3 18852.9 19247.5 19127.7 18938.9 19003.3 19363.2

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 average sum

0.15 sum 0.39 64.94 10.81

-2.10 Risk

56

Returns of HDFC Monthly Income Plan long term plan growth option for the month of November-07
Risk free Rate n*sum x y Sum x 227.05 -2.10 0.06

Sum y n*sumx^2 sumx^2 Beta Returns Risk Shrpes Treynor

0.38 1363.81 4217.66 -0.08 0.02 0.39 -0.11 0.52

Graph -12
Graphical Representation of HDFC Monthly Income Plan Long Term Plan Growth option and Bse Returns for the Month of November-07
G h l ee nt n rhH Coh rp a ps t i f te D M l a i Rr ea o c o F ny t I c elno Tm nrwO n n m aL ge P G t p & o P n r l a oh t i o B R rs S en E t u
6 .0 0 Returns 5 .0 0 4 .0 0 3 .0 0 2 .0 0 1 .0 0 0 .0 0 -. 0 1 0 -. 0 2 0 -. 0 3 0 -. 0 4 0 Te i m 1 3 5 7 9 1 1 1 3 1 5 1 7 1 9 2 1 R rs) e ny t ( u R rs) e nx t ( u

It has the Sharpe ratio giving a risk Premium of 0.39 for every unit of Standard Deviation Risk. It has the Trynors ratio generating 0.52 returns above the risk free rate of return for every unit of Systematic risk. The Returns generated by HDFC Monthly Income Plan-Long Term Plan-Growth option for the Month of November are not much affected by change in market circumstances, as the Beta is -0.08 which is less than the market value of Beta; the fund is not a hostile fund. It generated returns -0.11. 57

Table-12 Calculation of Risk of HDFC Monthly Income Plan Long term PlanGrowth option for the month of December-o7
Date Net Asset Value Closing price S. No. Returns (y) Returns Returns- (Return(x) Mean Mean)^2 x^2 x*y

3-Dec-07 4-Dec-07 5-Dec-07 6-Dec-07 7-Dec-07 10-Dec-07 11-Dec-07 12-Dec-07 13-Dec-07 14-Dec-07 17-Dec-07 18-Dec-07 19-Dec-07 20-Dec-07 24-Dec-07 26-Dec-07 27-Dec-07 28-Dec-07 31-Dec-07

16.86 16.9 16.98 17 17.01 17.03 17.08 17.14 17.15 17.15 17.03 17.02 16.99 17.01 17.08 17.15 17.17 17.21 17.29

19603.4 19529.5 19738.1 19795.9 19966 19930.7 20290.9 20375.9 20104.4 20030.8 19261.4 19079.6 19092 19162.6 19854.1 20192.5 20216.7 20207 20287

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Average Sum

0.32 0.23 0.46 0.16 0.05 0.11 0.28 0.36 0.04 0.02 -0.72 -0.03 -0.20 0.09 0.47 0.37 0.16 0.21 0.48 0.15 2.87

1.24 -0.38 1.07 0.29 0.86 -0.18 1.81 0.42 -1.33 -0.37 -3.84 -0.94 0.06 0.37 3.61 1.70 0.12 -0.05 0.40

0.17 0.08 0.31 0.01 -0.10 -0.04 0.13 0.21 -0.11 -0.13 -0.87 -0.19 -0.35 -0.06 0.31 0.22 0.01 0.06 0.33 Variance

0.03 0.01 0.10 0.00 0.01 0.00 0.02 0.04 0.01 0.02 0.75 0.03 0.12 0.00 0.10 0.05 0.00 0.00 0.11

1.54 0.14 1.14 0.09 0.74 0.03 3.27 0.18 1.78 0.13 14.76 0.89 0.00 0.14 13.02 2.91 0.01 0.00 0.16

0.39 -0.09 0.49 0.05 0.05 -0.02 0.51 0.15 -0.06 -0.01 2.75 0.03 -0.01 0.03 1.68 0.63 0.02 -0.01 0.19

0.07 Sum 0.27 40.92 6.79

5.28 Risk

58

Returns of HDFC Monthly Income Plan long term plan growth option for the month of December-07
Risk free Rate n*sum x y Sum x Sum y 128.95 5.28 2.87 0.06

n*sumx^2 sumx^2 Beta Returns Risk Shrpes Treynor

777.46 1674.34 -0.13 0.15 0.27 0.33 -0.72

Graph-12 Graphical Representation of HDFC Monthly Income Plan Long Term Plan Growth option and Bse Returns for the Month of December-07
Gpi a er sn t n r h HF M t l r h lR eet i f t e D a c p ao o Coh n y I cm l n og e Pn r w Oi n n e a Ln T ma G t p & o P r l oh t o B Ru s S er E t n
40 . 0 30 . 0 Returns 20 . 0 10 . 0 00 . 0 -. 0 1 0 -. 0 2 0 -. 0 3 0 -. 0 4 0 -. 0 5 0 T e i m 1 3 5 7 9 1 1 1 3 1 5 1 7 1 9 Ru s ) er ( t ny Ru s ) er ( t nx

It has the Trynors ratio generating -0.72 returns above the risk free rate of return for every unit of Systematic risk.It has the Sharpe ratio giving a risk Premium of 0.27 for every unit of Standard Deviation Risk. The Returns generated by HDFC Monthly Income Plan-Long Term Plan-Growth option for the Month of December are not much affected by change in market conditions, as the Beta is -0.13 which is less than the market value of Beta; the fund is not an aggressive fund. It generated returns -0.72. 59

Table-13 Calculations of the Risk of HDFC Floating Rate Income Fund long term plan Dividen
for the month of july-07
Net Asset Value 10.2 10.17 Closing price Returns(y ) ReturnsMean (ReturnsMean)^2

Date 2-Jul-07 3-Jul-07

S. No.

Returns(x)

x^2

x*y

14664.3 14806.5
1

-0.27

0.97

-0.27

0.0722

0.94

0.26

4-Jul-07 5-Jul-07 6-Jul-07 9-Jul-07 10-Jul-07 11-Jul-07 12-Jul-07 13-Jul-07 16-Jul-07 17-Jul-07 18-Jul-07 19-Jul-07 20-Jul-07 23-Jul-07 24-Jul-07 25-Jul-07 26-Jul-07 27-Jul-07 30-Jul-07 31-Jul-07

10.18 10.18 10.18 10.19 10.19 10.19 10.19 10.19 10.2 10.17 10.18 10.18 10.18 10.19 10.19 10.19 10.19 10.19 10.2 10.2

14880.2 14861.9 14964.1 15045.7 15009.9 14910.6 15092 15272.7 15311.2 15289.8 15301.2 15550.1 15565.6 15732.2 15794.9 15699.3 15776.3 15234.6 15260.9 15551

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Average Sum

0.02 0.02 0.02 0.06 0.02 0.02 0.02 0.02 0.06 -0.27 0.02 0.02 0.02 0.06 0.02 0.02 0.02 0.02 0.06 0.02 0.00 0.02

0.50 -0.12 0.69 0.55 -0.24 -0.66 1.22 1.20 0.25 -0.14 0.07 1.63 0.10 1.07 0.40 -0.61 0.49 -3.43 0.17 1.90

0.02 0.02 0.02 0.06 0.02 0.02 0.02 0.02 0.06 -0.27 0.02 0.02 0.02 0.06 0.02 0.02 0.02 0.02 0.06 0.02 Variance

0.0004 0.0004 0.0004 0.0038 0.0004 0.0004 0.0004 0.0004 0.0038 0.0743 0.0004 0.0004 0.0004 0.0038 0.0004 0.0004 0.0004 0.0004 0.0036 0.0003 0.0080 0.0893

0.25 0.02 0.47 0.30 0.06 0.44 1.48 1.43 0.06 0.02 0.01 2.65 0.01 1.15 0.16 0.37 0.24 11.79 0.03 3.61 sum 25.47

0.01 0.00 0.01 0.03 0.01 0.01 0.03 0.02 0.02 0.04 0.00 0.03 0.00 0.07 0.01 0.01 0.01 0.07 0.01 0.04 0.03

6.00

Risk

60

Returns of HDFC Floating Rate Income Fund long term plan Dividend for the month of july-07
Risk free Rate n*sum x y Sum x Sum y n*sumx^2 -0.65 6.00 0.02 534.97 0.06

sumx^2 Beta Returns Risk Shrpes Treynor

648.96 0.01 0.00 0.09 -0.66 -8.66

Graph-14 Graphical Representation of HDFC floating rate Income Fund Long term Plan dividend for the month of july-07
G h l e e nt n rh D Fa g rpc Rrs t i f t e F l t a i a p ea o H Coi o n R I c eu L ge P Dd d a n m n o Tm ni i e t e o Fd n r l a v n
30 . 0 Returns 20 . 0 10 . 0 00 . 0 1 -. 0 1 0 -. 0 2 0 -. 0 3 0 -. 0 4 0 Te i m 3 5 7 9 1 1 1 3 1 5 1 7 1 9 2 1

R rs ) e ny t u ( R rs ) e nx t u (

The Returns generated by HDFC Floating Rate Income Fund Long Term Plan Dividend for the Month of July are affected by change in market situation, as the Beta is 0.01 which is more than the market value of Beta; the fund is a forceful fund. It generated returns -0.66. It has the Sharpe ratio giving a risk Premium of 0.09 for every unit of Standard Deviation Risk. It has the Trynors ratio generating -8.66 returns above the risk free rate of return for every unit of Systematic risk. 61

Table-14 Calculations of the Risk of HDFC Floating Rate Income Fund long term plan
Dividend for the month of August-07
Net Asset Value 10.2 10.17 10.18

Date 1-Aug-07 2-Aug-07 3-Aug-07

Closing price

S. No. 1 2 3

Returns(y )

Returns(x)

ReturnsMean

(ReturnsMean)^2

x^2

x*y

14935.8 14985.7 15138.4

0.02 -0.31 0.02

-3.96 0.33 1.02

0.02 -0.31 0.02

0.0005 0.0973 0.0004

15.65 0.11 1.04

-0.09 -0.10 0.02

6-Aug-07 7-Aug-07 8-Aug-07 9-Aug-07 10-Aug-07 13-Aug-07 14-Aug-07 16-Aug-07 17-Aug-07 20-Aug-07 21-Aug-07 22-Aug-07 23-Aug-07 24-Aug-07 27-Aug-07 28-Aug-07 29-Aug-07 30-Aug-07 31-Aug-07

10.18 10.18 10.19 10.19 10.19 10.2 10.2 10.2 10.17 10.18 10.18 10.18 10.19 10.19 10.19 10.2 10.2 10.2 10.2

14903 14932.8 15308 15100.2 14868.3 15017.2 15000.9 14358.2 14141.5 14427.6 13989.1 14248.7 14164 14424.9 14842.4 14919.2 14993 15121.7 15318.6

4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Average sum

0.06 0.02 0.02 0.02 0.02 0.06 0.02 0.04 -0.29 0.06 0.02 0.02 0.02 0.02 0.06 0.02 0.02 0.02 0.02 0.00 0.01

-1.55 0.20 2.51 -1.36 -1.54 1.00 -0.11 -4.28 -1.51 2.02 -3.04 1.86 -0.59 1.84 2.89 0.52 0.50 0.86 1.30

0.06 0.02 0.02 0.02 0.02 0.06 0.02 0.04 -0.29 0.06 0.02 0.02 0.02 0.02 0.06 0.02 0.02 0.02 0.02 variance

0.0038 0.0005 0.0004 0.0004 0.0005 0.0039 0.0004 0.0017 0.0844 0.0039 0.0004 0.0005 0.0005 0.0004 0.0039 0.0005 0.0005 0.0005 0.0005 0.0093 0.10

2.42 0.04 6.31 1.84 2.36 1.00 0.01 18.36 2.28 4.09 9.23 3.44 0.35 3.39 8.38 0.27 0.25 0.74 1.69

-0.10 0.00 0.05 -0.03 -0.03 0.06 0.00 -0.18 0.44 0.13 -0.06 0.04 -0.01 0.04 0.18 0.01 0.01 0.02 0.03

sum 83.26 0.43

-1.09

risk

62

Returns of HDFC Floating Rate Income Fund long term plan Dividend for the month of August-07
Risk free Rate n*sum x y Sum x Sum y n*sumx^2 sumx^2 Beta Returns 9.47 -1.09 0.01 1831.70 6932.05 0.00 0.00 0.06

Risk Shrpes Treynor

0.10 -0.62 32.12

Graph-14 Graphical Representation of HDFC floating rate Income Fund Long term Plan dividend for the month of August-07
G h l ee nt n rh D Fa g rp a ps t i f te F l t a i Rr ea o H Con c o i R I c eu L ge P Dd d a n m n o Tm ni i e t e o Fd n r l a v n
4 .0 0 Returns 3 .0 0 2 .0 0 1 .0 0 0 .0 0 -. 0 1 0 -. 0 2 0 -. 0 3 0 -. 0 4 0 -. 0 5 0 Te i m 1 3 5 7 9 1 1 1 3 1 5 1 7 1 9 2 1 R rs) e ny t ( u R rs) e nx t ( u

It has the Sharpe ratio giving a risk Premium of 0.10 for every unit of Standard Deviation Risk. It has the Trynors ratio generating 32.12 returns above the risk free rate of return for every unit of Systematic risk. The Returns generated by HDFC Floating Rate Income Fund Long Term Plan Dividend for the Month of August are not much affected by change in market setting, as the Beta is 0.001 which is less than the market value of Beta; the fund is not a belligerent fund. It generated returns -0.62. 63

Table-15 Calculations of the Risk of HDFC Floating Rate Income Fund long term plan
Dividend for the month of September-07
Net Asset Value 10.21 10.17 10.18 10.18 10.18 10.19 Closing price Returns(y ) ReturnsMean (ReturnsMean)^2

Date 3-Sep-07 4-Sep-07 5-Sep-07 6-Sep-07 7-Sep-07 10-Sep-07

S. No. 1 2 3 4 5 6

Returns(x)

x^2

x*y

15422.1 15465.4 15446.2 15616.3 15590.4 15596.8

0.06 -0.36 0.02 0.02 0.02 0.06

0.68 0.28 -0.12 1.10 -0.17 0.04

0.07 -0.36 0.02 0.02 0.02 0.07

0.0046 0.1263 0.0006 0.0006 0.0006 0.0045

0.46 0.08 0.02 1.21 0.03 0.00

0.04 -0.10 0.00 0.02 0.00 0.00

11-Sep-07 12-Sep-07 13-Sep-07 14-Sep-07 17-Sep-07 18-Sep-07 19-Sep-07 20-Sep-07 21-Sep-07 24-Sep-07 25-Sep-07 26-Sep-07 27-Sep-07 28-Sep-07

10.19 10.19 10.19 10.19 10.2 10.17 10.18 10.18 10.18 10.19 10.19 10.19 10.19 10.2

15542.8 15505.4 15614.4 15603.8 15504.4 15669.1 16322.8 16348 16564.2 16845.8 16899.5 16921.4 17150.6 17291.1

7 8 9 10 11 12 13 14 15 16 17 18 19 20 Average sum

0.02 0.02 0.02 0.02 0.06 -0.28 0.04 0.02 0.02 0.06 0.02 0.02 0.02 0.02 0.00 -0.06

-0.35 -0.24 0.70 -0.07 -0.64 1.06 4.17 0.15 1.32 1.70 0.32 0.13 1.35 0.82

0.02 0.02 0.02 0.02 0.07 -0.28 0.04 0.02 0.02 0.07 0.02 0.02 0.02 0.02 Variance

0.0006 0.0006 0.0006 0.0006 0.0046 0.0763 0.0020 0.0006 0.0006 0.0045 0.0006 0.0006 0.0006 0.0006 0.0115 0.1074

0.12 0.06 0.49 0.00 0.41 1.13 17.40 0.02 1.75 2.89 0.10 0.02 1.83 0.67

-0.01 -0.01 0.02 0.00 -0.04 -0.30 0.17 0.00 0.03 0.11 0.01 0.00 0.03 0.02

sum 28.69 0.01

12.25

Risk

64

Returns of HDFC Floating Rate Income Fund long term plan Dividend for the month of September-07
Risk free Rate n*sum x y Sum x Sum y n*sumx^2 sumx^2 Beta Returns Risk Shrpes -0.13 12.25 -0.06 573.88 823.35 0.00 0.00 0.11 -0.59 0.06

Treynor

24.91

Graph-15 Graphical Representation of HDFC floating rate Income Fund Long term Plan dividend for the month of September-07
G ha ers t t n rhH Cl a g rpc R e n i f t e D F t a i l p ea oo F oi n Re cm u L ge Pn i i ed a I oe n o T ma D d t n Fd n r l v n
50 . 0 40 . 0 30 . 0 20 . 0 10 . 0 R rs ) e ny t u ( R rs ) e nx t u (

Returns

00 . 0 1 -. 0 1 0 Te i m 3 5 7 9 1 1 1 3 1 5 1 7 1 9

It has the Trynors ratio generating 24.91 returns above the risk free rate of return for every unit of Systematic risk. It has the Sharpe ratio giving a risk Premium of 1.11 for every unit of Standard Deviation Risk. The Returns generated by HDFC Floating Rate Income Fund Long Term Plan Dividend for the Month of September are not much affected by change in market situation, as the Beta is 0.001 which is less than the market value of Beta; the fund is not an antagonistic fund. It generated returns -0.59. 65

Table-16 Calculations of the Risk of HDFC Floating Rate Income Fund long term plan
Dividend for the month of October-07
Date 1-Oct-07 3-Oct-07 4-Oct-07 5-Oct-07 8-Oct-07 9-Oct-07 10-Oct-07 Net Asset Value 10.2 10.18 10.18 10.18 10.19 10.19 10.19 Closing price S. No. 1 2 3 4 5 6 7 Returns(y ) Returns(x) ReturnsMean (ReturnsMean)^2 x^2 x*y

17328.6 17847 17777.1 17773.4 17491.4 18280.2 18658.3

0.06 -0.27 0.02 0.02 0.10 0.02 0.02

0.22 2.99 -0.39 -0.02 -1.59 4.51 2.07

0.06 -0.28 0.02 0.02 0.10 0.02 0.02

0.0034 0.0761 0.0003 0.0003 0.0102 0.0003 0.0004

0.05 8.95 0.15 0.00 2.52 20.34 4.28

0.01 0.82 0.01 0.00 0.17 0.09 0.05

11-Oct-07 12-Oct-07 15-Oct-07 16-Oct-07 17-Oct-07 18-Oct-07 19-Oct-07 22-Oct-07 23-Oct-07 24-Oct-07 25-Oct-07 26-Oct-07 29-Oct-07 30-Oct-07 31-Oct-07

10.2 10.2 10.21 10.21 10.17 10.18 10.18 10.18 10.19 10.19 10.19 10.19 10.2 10.2 10.2

18814.1 18419 19058.7 19051.9 18715.8 17998.4 17560 17614 18492.8 18512.9 18770.9 19243.2 19977.7 19783.5 19838

8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Average Sum

0.02 0.02 0.06 0.02 -0.34 0.02 0.02 0.06 0.02 0.02 0.02 0.02 0.06 0.02 0.02 0.00 0.07

0.84 -2.10 3.47 -0.04 -1.76 -3.83 -2.44 0.31 4.99 0.11 1.39 2.52 3.82 -0.97 0.28

0.02 0.02 0.06 0.02 -0.34 0.02 0.02 0.06 0.02 0.02 0.02 0.02 0.06 0.02 0.01 Variance

0.0003 0.0003 0.0037 0.0003 0.1145 0.0003 0.0004 0.0038 0.0004 0.0004 0.0004 0.0003 0.0038 0.0003 0.0002 0.0100 0.1001

0.70 4.41 12.06 0.00 3.11 14.69 5.93 0.09 24.90 0.01 1.94 6.33 14.57 0.94 0.08 Sum 126.05

0.02 0.04 0.22 0.00 0.59 0.08 0.06 0.02 0.11 0.00 0.03 0.05 0.25 0.02 0.00

14.36

Risk

0.27

66

Returns of HDFC Floating Rate Income Fund long term plan Dividend for the month of October-07
Risk free Rate n*sum x y Sum x Sum y n*sumx^2 sumx^2 Beta Returns Risk Shrpes 5.88 14.36 0.07 2773.14 15889.05 0.00 0.00 0.10 -0.57 0.06

Treynor

153.61

Graph-16 Graphical Representation of HDFC floating rate Income Fund Long term Plan dividend for the month of October-07
Gh l ee ni nrh D F t g r ia p ea f te F l a a cRr p s tt o HC i o on R Ic e n o T P D e a nm d n e lnii n t e o F Lg r a v d u m d
6 .0 0 Returns 5 .0 0 4 .0 0 3 .0 0 2 .0 0 1 .0 0 0 .0 0 -.0 1 0 -.0 2 0 -.0 3 0 -.0 4 0 -.0 5 0 Te i m 1 3 5 7 9 1 1 1 3 1 5 1 7 1 9 2 1 Rrs) en t ( u y Rrs) en t ( u x

The Returns generated by HDFC Floating Rate Income Fund Long Term Plan Dividend for the Month of October are equal affected by change in market conditions, as the Beta is 0.001 which is Equal to the market value of Beta; the fund is not an aggressive fund. It generated returns -0.57. It has the Sharpe ratio giving a risk Premium of 0.10 for every unit of Standard Deviation Risk. It has the Trynors ratio generating 153.61 returns above the risk free rate of return for every unit of Systematic risk. 67

Table-17 Calculations of the Risk of HDFC Floating Rate Income Fund long term plan
Dividend for the month of November-07
Net Asset Value 10.21 10.17 10.18 10.18 10.18 10.19 10.2 Closing price Returns(y ) ReturnsMean (ReturnsMean)^2

Date 1-Nov-07 2-Nov-07 5-Nov-07 6-Nov-07 7-Nov-07 8-Nov-07 12-Nov-07

S. No. 1 2 3 4 5 6 7

Returns(x)

x^2

x*y

19724.4 19976.2 19590.8 19400.7 19289.8 19058.9 18737.3

0.02 -0.32 0.06 0.02 0.02 0.02 0.09

-0.57 1.28 -1.93 -0.97 -0.57 -1.20 -1.69

0.02 -0.32 0.07 0.02 0.02 0.02 0.09

0.0005 0.1037 0.0042 0.0004 0.0003 0.0005 0.0086

0.33 1.63 3.72 0.94 0.33 1.43 2.85

-0.01 -0.41 -0.13 -0.02 -0.01 -0.03 -0.16

13-Nov-07 14-Nov-07 15-Nov-07 16-Nov-07 19-Nov-07 20-Nov-07 21-Nov-07 22-Nov-07 23-Nov-07 26-Nov-07 27-Nov-07 28-Nov-07 29-Nov-07 30-Nov-07

10.2 10.2 10.2 10.21 10.18 10.18 10.18 10.19 10.19 10.19 10.2 10.2 10.2 10.2

19035.5 19929.1 19784.9 19698.4 19633.4 19280.8 18602.6 18526.3 18852.9 19247.5 19127.7 18938.9 19003.3 19363.2

8 9 10 11 12 13 14 15 16 17 18 19 20 21 Average sum

0.02 0.02 0.02 0.04 -0.28 0.02 0.03 0.02 0.03 0.06 0.02 0.02 0.02 0.02 0.00 -0.01

1.59 4.69 -0.72 -0.44 -0.33 -1.80 -3.52 -0.41 1.76 2.09 -0.62 -0.99 0.34 1.89

0.02 0.02 0.02 0.04 -0.28 0.02 0.03 0.02 0.03 0.07 0.02 0.02 0.02 0.02 Variance

0.0005 0.0005 0.0005 0.0013 0.0757 0.0006 0.0007 0.0005 0.0007 0.0042 0.0005 0.0004 0.0004 0.0006 0.0098 0.0989

2.53 22.04 0.52 0.19 0.11 3.22 12.37 0.17 3.11 4.38 0.39 0.97 0.12 3.59 Sum 64.94

0.04 0.11 -0.02 -0.02 0.09 -0.04 -0.09 -0.01 0.04 0.14 -0.01 -0.02 0.01 0.05

-2.10

Risk

- 0.50

68

Returns of HDFC Floating Rate Income Fund long term plan Dividend for the month of November-07
Risk free Rate n*sum x y Sum x Sum y n*sumx^2 sumx^2 Beta Returns Risk Shrpes -10.58 -2.10 -0.01 1363.81 4217.66 0.00 0.00 0.10 -0.61 0.06

Treynor

-16.24

Graph-17 Graphical Representation of HDFC floating rate Income Fund Long term Plan dividend for the month of November-07
G h l ee nt n rh D Fa g rpc Rrs t i f te F l t a ia p ea o H Co n o i R I c eu L ge P D e a n m n o Tm ni i n t e o Fd n r l a v d d
6 .0 0 Returns 5 .0 0 4 .0 0 3 .0 0 2 .0 0 1 .0 0 0 .0 0 -. 0 1 0 -. 0 2 0 -. 0 3 0 -. 0 4 0 Te i m 1 3 5 7 9 1 1 1 3 1 5 1 7 1 9 2 1 R rs) e ny t ( u R rs) e nx t ( u

It has the Sharpe ratio giving a risk Premium of 0.10 for every unit of Standard Deviation Risk. It has the Trynors ratio generating -16.24 returns above the risk free rate of return for every unit of Systematic risk. The Returns generated by HDFC Floating Rate Income Fund Long Term Plan Dividend for the Month of November are not much affected by change in market conditions, as the Beta is 0.001 which is less than to the market value of Beta; the fund is not an insistent fund. It generated returns -0.61. 69

Table-18 Calculations of the Risk of HDFC Floating Rate Income Fund long term plan
Dividend for the month of December-07
Date 3-Dec-07 4-Dec-07 5-Dec-07 6-Dec-07 7-Dec-07 10-Dec-07 11-Dec-07 12-Dec-07 Net Asset Value 10.21 10.17 10.18 10.18 10.18 10.19 10.19 10.19 Closing price S. No. 1 2 3 4 5 6 7 8 Returns(y ) Returns(x) ReturnsMean (ReturnsMean)^2 x^2 x*y

19603.4 19529.5 19738.1 19795.9 19966 19930.7 20290.9 20375.9

0.07 -0.36 0.02 0.03 0.02 0.07 0.02 0.02

1.24 -0.38 1.07 0.29 0.86 -0.18 1.81 0.42

0.06 -0.36 0.02 0.02 0.02 0.07 0.02 0.02

0.0041 0.1316 0.0004 0.0006 0.0004 0.0049 0.0004 0.0004

1.54 0.14 1.14 0.09 0.74 0.03 3.27 0.18

0.08 0.14 0.02 0.01 0.02 -0.01 0.04 0.01

13-Dec-07 14-Dec-07 17-Dec-07 18-Dec-07 19-Dec-07 20-Dec-07 24-Dec-07 26-Dec-07 27-Dec-07 28-Dec-07 31-Dec-07

10.19 10.2 10.2 10.17 10.18 10.18 10.19 10.19 10.19 10.2 10.21

20104.4 20030.8 19261.4 19079.6 19092 19162.6 19854.1 20192.5 20216.7 20207 20287

9 10 11 12 13 14 15 16 17 18 19

0.02 0.02 0.07 -0.29 0.02 0.02 0.09 0.05 0.02 0.03 0.08 0.00 0.03

-1.33 -0.37 -3.84 -0.94 0.06 0.37 3.61 1.70 0.12 -0.05 0.40

0.02 0.02 0.07 -0.29 0.02 0.02 0.09 0.05 0.02 0.03 0.08 Variance

0.0003 0.0004 0.0044 0.0844 0.0004 0.0004 0.0086 0.0022 0.0005 0.0009 0.0058 0.0132 0.1150

1.78 0.13 14.76 0.89 0.00 0.14 13.02 2.91 0.01 0.00 0.16

-0.02 -0.01 -0.26 0.27 0.00 0.01 0.34 0.08 0.00 0.00 0.03

Average Sum

Sum 40.92 0.75

4.87

Risk

70

Returns of HDFC Floating Rate Income Fund long term plan Dividend for the month of December-07
Risk free Rate n*sum x y Sum x Sum y n*sumx^2 sumx^2 Beta Returns Risk Shrpes Treynor 14.24 4.87 0.03 777.46 1674.34 -0.02 0.00 0.12 -0.51 3.72 0.06

Graph-18 Graphical Representation of HDFC floating rate Income Fund Long term Plan dividend
Unsystematic Names Of the Funds HDFC TaxSaver-Dividend Plan HDFC MF Monthly Income PlanLong Term Plan-Growth Option HDFC Floating Rate Income Fund-Long Term Plan-DIVIDEND Sharpe's 0.1466 0.1081 -0.6607 Treynor 0.1466 -0.0365 -8.6615 Systematic Risk -3.3480 -0.6793 0.0068 Risk 0.9147 0.2295 0.0893

for the month of December-07

Gh l eeninr eD F t g r ia p ea f t HC a a cR s tt o p r o h F l i on R Ic e n o T P D e a nm d n e lnii n t e o F Lg r a v d u m d
4 .0 0 Returns 3 .0 0 2 .0 0 1 .0 0 0 .0 0 -.0 1 0 -.0 2 0 -.0 3 0 -.0 4 0 -.0 5 0 Te i m 1 3 5 7 9 1 1 1 3 1 5 1 7 1 9 Rrs) en t ( u y Rrs) en t ( u x

It has the Trynors ratio generating 3.72 returns above the risk free rate of return for every unit of Systematic risk. It has the Sharpe ratio giving a risk Premium of 0.12 for every unit of Standard Deviation Risk. The Returns generated by HDFC Floating Rate Income Fund Long Term Plan Dividend for the Month of December are not much affected by change in market conditions, as the Beta is -0.02 which is less than to the market value of Beta; the fund is not a forceful fund. It generated returns 0.51. 71 Table-19 Comparisons of various schemes in HDFC Mutual fund for the month of

july-07

Graph-19

Graphical Representation of various schemes for the month of July-07

R e tu rn s o f th e V ari o u s S ch e m es f o r t h e m o n th o f Ju l y

5 .0 0 0 0 0 .0 0 0 0 Returns H D F C T a x Sa v e r - D iv id e n d P la n - 5 .0 0 0 0 - 1 0 .0 0 0 0

S h a r p e 's H D F C M F M o n th ly In c o m e Pla n - L o n g T e Hm Pla nF- lo a tin g R a te In c o m e F u n d - L o n g T e r m Pla n r D FC Tre y no r G r o w th O p tio n D IV ID EN D

During the period of the July 2007 the HDFC Tax Saver Fund was only exposed the harmful Returns Remaining two schemes were shown the optimistic Returns. No One scheme was shown larger value of systematic risk when compared with the market systematic risk. All schemes are shown the systematic risk is below the 1% that is below the market risk. This means schemes in the study are not responsive to market. If market expand / decline by 1%, then these schemes will enlarge / minimize by less than 1%. 72

Table-20 Comparisons of various schemes in HDFC Mutual fund for the

month of August-07
Systematic Names Of the Funds HDFC TaxSaver-Dividend Plan HDFC MF Monthly Income Plan-Long Term Sharpe's 0.0325 -0.1155 Treynor -0.1235 0.6723 Risk -0.3965 -0.0780 Unsystematic Risk 1.5081 0.4537

Plan-Growth Option HDFC Floating Rate Income Fund-Long Term Plan-DIVIDEND -0.6178 32.1169 -0.0019 0.0966

Graph-20

Graphical Representation of various schemes for the month of August-07

R e tu rn s o f th e V a rio u s S c h e m e s fo r th e m o n th o f A u g u s t

4 0 .0 0 0 0 3 0 .0 0 0 0 2 0 .0 0 0 0 Returns 1 0 .0 0 0 0 0 .0 0 0 0 - 1 0 .0 0 0 0 H D F C T a x S a v e r - D i v id He D dF C laM n F M o n th ly In c o m e HP D Fn C L Fo lo ga tine g r m aP te nIn- c o m e F u n d - L o n g T e r m P l a n n P la - n T R la G r o w th O p tio n D IV ID E N D S h a r p e 's T re y n o r

In the month of August the schemes of the HDFC mutual Fund was specified downbeat Returns. In this month the HDFC Mutual Fund Schemes is shown the very high harmful returns. All schemes were shows the below 1% systematic risk it is the under the market Risk of 1%. This means schemes in the study are not responsive to market. If market expand / decline by 1%, then these schemes will swell / shrink by less than 1%. 73 Table-21

Comparisons of various schemes in HDFC Mutual fund for the month of September07

Systematic Names Of the Funds HDFC TaxSaver-Dividend Plan HDFC MF Monthly Income Plan-Long Term Plan-Growth Option HDFC Floating Rate Income Fund-Long Term Plan-DIVIDEND Sharpe's 0.5382 0.2595 -0.5880 Treynor -0.3549 -0.2058 24.9072 Risk -0.9933 -0.2136 -0.0025

Unsystematic Risk 0.6551 0.1694 0.1074

Graph-21

Graphical Representation of various schemes for the month of September-07

R e t u r n s o f t h e V a r io u s S c h e m e s f o r t h e m o n t h o f S e p t e m b e r

3 0 .0 0 0 0 2 0 .0 0 0 0 Returns 1 0 .0 0 0 0 0 .0 0 0 0 - 1 0 .0 0 0 0 S h a r p e 's Trey no r H D F C T a x S a v e r - D iv id e n d H la nF C M F M o n th ly In c o m e P la n -H D nF gC TFe lo m tin la nR- a te In c o m e F u n d - L o n g T e r m P la n PD Lo ra Pg G r o w th O p tio n D IV ID E N D

For the month of September the Two schemes of HDFC Mutual fund given the positive Returns. HDFC Floating Rate Income fund Long Term Plan -Dividend is given very high Positive Returns outstanding two schemes are performed well and gives normal positive returns but systematic is below the 1%. This means schemes in the study are not sensitive to

Market. If market enlarge / decline by 1%, then these schemes will swell / shrink by less than 1% 74
Systematic Names Of the Funds HDFC TaxSaver-Dividend Plan HDFC MF Monthly Income Plan-Long Term Plan-Growth Option HDFC Floating Rate Income Fund-Long Term Plan-DIVIDEND Sharpe's 0.2756 0.2727 -0.5666 Treynor -3.4471 -3.9748 153.6125 Risk -0.1606 -0.0291 -0.0004 Unsystematic Risk 2.0095 0.4239 0.1001

Table-22 Comparisons of various schemes in HDFC Mutual fund for the month of October-07

Graph-22

Graphical Representation of various schemes for the month of October-07

R e t u r n s o f t h e V a r io u s S c h e m e s f o r t h e m o n t h o f O c t o b e r

2 0 0 .0 0 0 0 1 5 0 .0 0 0 0 1 0 0 .0 0 0 0 Returns 5 0 .0 0 0 0 0 .0 0 0 0 -5 0 . 0 0 0 0 H D F C T a x S a v e r-D i v i d e n d P l a Hn D F C M F M o n t h l y In c o m e P l a n -L o n g H eDrm CP F al on a-Gt i nrog w Rt ha tO pI nt i co on m e F u n d -L o n g T e rm P l a n -D I V I D E N D T F l e c S h a rp e ' s T re y n o r

During the period of the October 2007.HDFC Mutual Funds schemes are shown positive returns HDFC Floating Rate Income fund Long Term Plan -Dividend is given very high Positive Returns outstanding two schemes are performed well and gives normal positive returns but systematic is below the 1%. This means schemes in the study are not sensitive to market. If market enlarge / decline by 1%, then these schemes will swell / shrink by less than 1%. 75

Table-23 Comparisons of various schemes in HDFC Mutual fund for the month of
November-07
Systematic Names Of the Funds HDFC TaxSaver-Dividend Plan HDFC MF Monthly Income Plan-Long Term Plan-Growth Option HDFC Floating Rate Income Fund-Long Term Plan-DIVIDEND Sharpe's -0.0588 -0.1078 -0.6094 Treynor 0.2336 0.5248 16.2418 Risk -0.4069 -0.0798 0.0037 Unsystematic Risk 1.6172 0.3887 0.0989

Graph-23

Graphical Representation of various schemes for the month of November-07

Systematic Names Of the Funds HDFC TaxSaver-Dividend Plan HDFC MF Monthly Income Plan-Long Term Plan-Growth Option HDFC Floating Rate Income Fund-Long Term Plan-DIVIDEND Sharpe's 0.1271 0.3350 -0.5094 Treynor -0.2294 -0.7168 3.7232 Risk -0.6321 -0.1269 -0.0157

Unsystematic Risk 1.1403 0.2715 0.1150

R e t u rn s o f t h e V a ri o u s S c h e m e s f o r t h e m o n t h o f N o v e m b e r

5 .0 0 0 0 0 .0 0 0 0 Returns - 5 .0 0 0 0 - 1 0 .0 0 0 0 - 1 5 .0 0 0 0 - 2 0 .0 0 0 0 ha p H D F C T a x S a v e r - D iv id e n d P laHn D F C M F M o n th ly In c o m e P la n - L o H g T e r m lo a tin -g R a te In c o m e F u n d - L o n gS T e r m eP'sla n n D F C F P la n G r o w th O p tio n D IV ID E N D T re y n o r

In the month of November 2007 the three schemes are shows the negative Returns. During the period of the November 2007 the three schemes Systematic Risk is below 1%. This means schemes in the study are not sensitive to market. If market increase / decrease by 1%, then these schemes will swell / shrink by less than 1%. In the month of November HDFC Mutual Fund Schemes are not performed very well, its given the downbeat returns. Its performed very poor.

76 Table-24 Comparisons of various schemes in HDFC Mutual fund for the month of

December-07
Graph-24

Graphical Representation of various schemes for the month of December-07

R tu n o th V r u S h m sfo t em n o e r s f e a io s c e e r h o th f D c me ee br
4 00 .0 0 Returns 3 00 .0 0 2 00 .0 0 1 00 .0 0 0 00 .0 0 - .0 0 1 00 H F T x a eD C a S vr D id n P n iv e d la HF M DC F M n ly I c m o th n o e P n o gT r la -L n em P nGo th la - r w O tio p n HF F a g D C lo tin R teIn o e a cm F n - o gT r u dL n em P nD I E D la - IVD N S ap 's hr e Te n r ryo

During the month of December 2007 the three schemes systematic Risk is less than the 1%.This means schemes in the study are not sensitive to market. If market increase / decrease by 1%, then these schemes will increase / decrease by less than 1%. In these three schemes the HDFC Floating Rate Income fund Long Term Plan -Dividend performed better than the Remaining schemes. 77

METHODOLOGY
Formulae used for Date Analysis: 1. Return = Ve - Vb _____ Vb Ve = Value at the end Vb = Value at the beginning 2. Variance (2) = (x-)2

N 3. Standard Deviation () = 2 4. Beta() = (NXY - XY) NX^2 (X) ^2 5. Sharpes = Rt - Rf 6. Treynors = Rt Rf

78 SUGGESTIONS

Select your investments on economic grounds. Public knowledge is no advantage. Buy stock with a disparity and discrepancy between the situation of the firm - and the expectations and appraisal of the public (Contrarian approach vs. Consensus approach). Buy stocks in companies with potential for surprises. Take advantage of volatility before reaching a new equilibrium. Listen to rumors and tips, check for yourself. Dont put your trust in only one investment. It is like putting all the eggs in one basket . This will help lesson the risk in the long term.

 The investor must select the right advisory body which is has sound knowledge about the product which they are offering. Professionalized advisory is the most important feature to the investors. Professionalized research, analysis which will be helpful for reducing any kind of risk to overcome.

79

FINDINGS
1. Most people do not know what Mutual Funds are in the society. (Poor awareness). 2. It cannot meet low-level income people. This category people (tailors, fruit sellers and small merchants) go to invest or save their money in unauthorized chit funds which are locally existed. 3. Mutual funds agents do not approaching all category investors. Some investors cannot meet MFs managers personally to invest. 4. Once who accustom to MFs they would like to invest in MFs again and again. They become as if permanent investors of MFs.

5.

Many investors invest money simultaneously more than one company and more schemes.

6. 7. 8. 9.

Investors do not bother much more about risk in MFs. Retired people migrate from NSC to MFs. MFs industry is being developed more than the existing private sector. Some people are aware to invest. These people have illusions about MFs industry.

80

CONCLUSIONS
Buying and selling decision of mutual fund units is influenced by various factors. Before taking any investment decision, popularly we consider the Average Return, Variance, Risk (standard deviation), and Market Risk. Along with these while making an investment decision about mutual funds we also consider the performance of the mutual fund scheme. For this purpose we use, beta (systematic risk) to measure portfolio performance. In this study I calculated the Return, Individual Fund Risk, and Market Risk of select UTI mutual Fund Schemes. Portfolio performance has been measured using systematic risk (beta).

Systematic Risk for the three schemes is below 1 (Beta = 1). This means schemes in the study are not sensitive to market. If market increase / decrease by 1%, then these schemes will increase / decrease by less than 1% (0.47, or 0.48). Beta values for Balanced Income Fund are low when compared to other two schemes.

81

BIBLIOGRAPHY Books
Security Analysis & Portfolio Management - Fishers & Jordon Financial Management M.Y. Khan Financial Management Prasanna Chandra

News Papers
Business Line Times of India India Today

Magazines
Week Business Daily

Websites
www.amfiindia.com www.sebi.com www.google.com www.HDFCmutualfund.com

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