3. TYPES OF MUTUAL FUNDSTYPES OF MUTUAL FUNDS
SCHEMESSCHEMES
According to Maturity PeriodAccording to Maturity Period
Open EndedOpen Ended
Close EndedClose Ended
According to Investment ObjectiveAccording to Investment Objective
Growth/Equity Oriented SchemeGrowth/Equity Oriented Scheme
Income / Debt Oriented SchemesIncome / Debt Oriented Schemes
Balanced SchemeBalanced Scheme
4. INSTRUMENTS OFINSTRUMENTS OF
INVESTMENTINVESTMENT
EQUITYEQUITY
CONVERTIBLE DEBENTURESCONVERTIBLE DEBENTURES
FIXED INCOME SECURITIESFIXED INCOME SECURITIES
SHORT TERM SECURITIESSHORT TERM SECURITIES
5. Facilities Provided by MutualFacilities Provided by Mutual
Funds to the InvestorsFunds to the Investors
Systematic Investment Plan (SIP)Systematic Investment Plan (SIP)
Systematic Withdrawal Plan (SWP)Systematic Withdrawal Plan (SWP)
Systematic Transfer Plan (STP)Systematic Transfer Plan (STP)
Dividend Transfer Plan (DTP)Dividend Transfer Plan (DTP)
Auto debit facility and Electronic ClearingAuto debit facility and Electronic Clearing
Service (ECS)Service (ECS)
SwitchingSwitching
7. SHAREKHAN BACKGROUNDSHAREKHAN BACKGROUND
Retail broking arm of the Mumbai basedRetail broking arm of the Mumbai based
SSKI group.SSKI group.
Established in 1922Established in 1922
Share khan's ground network includesShare khan's ground network includes
over 700+ Share shops in 130+ cities inover 700+ Share shops in 130+ cities in
India.India.
SSKI group ventured into institutionalSSKI group ventured into institutional
broking and corporate finance 18 yearsbroking and corporate finance 18 years
ago.ago.
8. OBJECTIVES OF THE STUDYOBJECTIVES OF THE STUDY
The present study focuses on theThe present study focuses on the
comparative analysis of mutual fundscomparative analysis of mutual funds
schemes performance.schemes performance.
To evaluate the schemes on the basisTo evaluate the schemes on the basis
of risk and return by calculating Beta,of risk and return by calculating Beta,
Alpha, Standard Deviation.Alpha, Standard Deviation.
9. RESEARCH METHEDOLOGYRESEARCH METHEDOLOGY
TYPE OF RESEARCHTYPE OF RESEARCH
---- Descriptive cum Analytical researchDescriptive cum Analytical research
has been used because the researcher hashas been used because the researcher has
no control over the variables. He can onlyno control over the variables. He can only
report what has happened or what isreport what has happened or what is
happening. . In Analytical Research, thehappening. . In Analytical Research, the
researcher has to use facts andresearcher has to use facts and
information already available and makeinformation already available and make
an analysis on the basis of these only.an analysis on the basis of these only.
10. DATA COLLECTIONDATA COLLECTION
The data has been collected from theThe data has been collected from the
secondary sources i.e.secondary sources i.e.
-- Fact sheets-- Fact sheets
-- Annual Reports-- Annual Reports
-- Offer Documents-- Offer Documents
NAVs of selected schemes andNAVs of selected schemes and
closing values of S&P CNX 500 haveclosing values of S&P CNX 500 have
been noted from www.amfindia.com andbeen noted from www.amfindia.com and
Mutual Fund House’s Personal Sites.Mutual Fund House’s Personal Sites.
11. SAMPLE & SAMPLINGSAMPLE & SAMPLING
TECHNIQUETECHNIQUE
SAMPLE SIZESAMPLE SIZE: 7 Schemes of 4 Mutual Fund: 7 Schemes of 4 Mutual Fund
Companies namely Franklin Templeton,Companies namely Franklin Templeton,
Reliance, HDFC and ICICI Prudential hasReliance, HDFC and ICICI Prudential has
been selected.been selected.
SAMPLING TECHNIQUE:SAMPLING TECHNIQUE: In the presentIn the present
study Convenience Sampling technique hasstudy Convenience Sampling technique has
been used.been used.
12. DATA ANALYSIS AND FINDINGSDATA ANALYSIS AND FINDINGS
The following parameters have been chosenThe following parameters have been chosen
for comparison:for comparison:
Fund ObjectiveFund Objective
Fund StyleFund Style
Fund DetailsFund Details
HistoryHistory
Portfolio CharacteristicsPortfolio Characteristics
Sectoral AllocationSectoral Allocation
Portfolio ConcentrationPortfolio Concentration
PerformancePerformance
AnalysisAnalysis
13. Following Test’s have been applied:Following Test’s have been applied:
BETABETA
ALPHAALPHA
STANDARD DEVIATIONSTANDARD DEVIATION
14. BETABETA
A Beta is a measure of risk. It compares aA Beta is a measure of risk. It compares a
mutual fund’s volatility with that of amutual fund’s volatility with that of a
benchmark. If the beta of the stock is 1, itbenchmark. If the beta of the stock is 1, it
means that the returns in the stock are highlymeans that the returns in the stock are highly
correlated to the benchmark index.correlated to the benchmark index.
If Beta is greater than 1, it means the stock isIf Beta is greater than 1, it means the stock is
more volatile.more volatile.
If Beta is less than 1, than the stock is lessIf Beta is less than 1, than the stock is less
volatile.volatile.
16. MID CAP FUNDMID CAP FUND
0.84
0.86
0.88
0.9
0.92
0.94
0.96
0.98
1
Franklin
Prima
HDFC
Capital
Builder
Reliance
Growth
BETA
17. ALPHAALPHA
Alpha is a financial term describing that partAlpha is a financial term describing that part
of an investor’s return that is due to the skillsof an investor’s return that is due to the skills
of the investment manager, as distinct from theof the investment manager, as distinct from the
return of the market as a whole.return of the market as a whole.
• ααii << rfrf: the manager or firm has destroyed: the manager or firm has destroyed
valuevalue
• ααii == rfrf: the manager or firm has neither created: the manager or firm has neither created
nor destroyed valuenor destroyed value
• ααii >> rfrf: the manager or firm has created value: the manager or firm has created value
18. LARGE CAP FUNDSLARGE CAP FUNDS
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Franklin
India
Bluechip
HDFC
TOP200
PRUICICI
Growth
Reliance
Vision
ALPHA
19. MID CAP FUNDSMID CAP FUNDS
-3
-2
-1
0
1
2
3
4
5
6
Franklin
Prima
HDFC
Capital
Builder
Reliance
Growth
ALPHA
20. STANDARD DEVIATIONSTANDARD DEVIATION
The total risk of a given fund isThe total risk of a given fund is
measured in terms of standardmeasured in terms of standard
deviation.deviation.
It tells us how much the values haveIt tells us how much the values have
deviated from the mean of the values.deviated from the mean of the values.
21. STANDARD DEVIATIONSTANDARD DEVIATION
LARGE CAP FUNDSLARGE CAP FUNDS
21.5
22
22.5
23
23.5
24
24.5
25
25.5
26
Franklin
India
Bluechip
HDFCTOP
200
PRUICICI
Growth
Reliance
Vision
STANDARD
DEVIATION
22. MID CAP FUNDSMID CAP FUNDS
22
23
24
25
26
27
28
29
Franklin
Prima
HDFC
Capital
Builder
Reliance
Growth
STANDARD
DEVIATION
23. FINDINGSFINDINGS
ICICI PRU--ICICI PRU--
--This fund has an aggressive stock-picking style, butThis fund has an aggressive stock-picking style, but
with a careful eye on risk control.with a careful eye on risk control.
-The fund has a great exposure to banking and-The fund has a great exposure to banking and
software sector stocks.software sector stocks.
FRANKLIN TEMPLETON—FRANKLIN TEMPLETON—
- Franklin India Blue-chip fund is one of the biggest- Franklin India Blue-chip fund is one of the biggest
diversified equity funds and is one of the mostdiversified equity funds and is one of the most
preferred large cap funds.preferred large cap funds.
- One of the astonishing features of the fund’s- One of the astonishing features of the fund’s
investment style is the buy-and hold-strategyinvestment style is the buy-and hold-strategy..
24. RELIANCERELIANCE
--High returns can be expected from this fundHigh returns can be expected from this fund
but its aggressiveness does not make it apt forbut its aggressiveness does not make it apt for
conservative investors.conservative investors.
HDFCHDFC
-The fund's exposure to large-cap stocks is a-The fund's exposure to large-cap stocks is a
cushion in the falling markets. It has not beencushion in the falling markets. It has not been
a top performer as some of the other mid-capa top performer as some of the other mid-cap
funds, but quite a consistent onefunds, but quite a consistent one
-This fund is a good bet for those wanting to-This fund is a good bet for those wanting to
invest in mid-caps but not willing to take tooinvest in mid-caps but not willing to take too
much of a risk.much of a risk.
25. CONCLUSIONSCONCLUSIONS
Best option consider by the investors when itBest option consider by the investors when it
comes to investing their money in Mutualcomes to investing their money in Mutual
Funds.Funds.
This industry is growing at a good pace.This industry is growing at a good pace.
Money Invested in Mutual Funds is safe.Money Invested in Mutual Funds is safe.
Investors who are looking for very high instantInvestors who are looking for very high instant
returns, mutual funds are not recommended;returns, mutual funds are not recommended;
they are meant for investors committed tothey are meant for investors committed to
patient investing.patient investing.
26. RECOMMENDATIONSRECOMMENDATIONS
Following suggestions can be made so that theFollowing suggestions can be made so that the
mutual fund houses can design their schemesmutual fund houses can design their schemes
in such a manner that it can improve theirin such a manner that it can improve their
performance as compared to other AMC’s.performance as compared to other AMC’s.
A thorough analysis should be done whileA thorough analysis should be done while
selecting the securities for a particularselecting the securities for a particular
portfolio.portfolio.
Fundamental security analysis should also beFundamental security analysis should also be
done i.e. the relationship between a security’sdone i.e. the relationship between a security’s
return and economy wide events.return and economy wide events.