piyush kumar-pg09073

8/8/2019 PIYUSH KUMAR-PG09073

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OBJECTIVE OF STUDYOBJECTIVE OF STUDY::

y The main purpose of doing this project was toknow about mutual fund and its functioning. This

helps to know in details about mutual fund

industry right from its inception stage, growth

and future prospects.

y It also helps in understanding different schemes

of mutual funds. Because my study depends

upon prominent funds in India and their

schemes like equity, income, balance as well as

the returns associated with those schemes.


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ABOUT COMPANY:ABOUT COMPANY:y VISIONTo be a dominant player in the Indian mutual fund space, recognizedfor its high levels of ethical and professional conduct and acommitment towards enhancing investor interests.

y ORGANIZATION AND MANAGEMENT

HDFCAsset Management Company Ltd (AMC) was incorporated

under the CompaniesAct, 1956, on December 10, 1999, and wasapproved to act as anAsset Management Company for the HDFCMutual Fund by SEBI vide its letter dated June 30, 2000.

The registered office of theAMC is situated at Ramon House, 3rdFloor,H.T. Parekh Marg, 169, Backbay Reclamation, Churchgate,Mumbai - 400 020.

The present equity shareholding pattern of theAMC is as follows :

Housing Development Finance Corporation Limited 60

Standard Life Investments Limited 40


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PRODUCTSPRODUCTS

y Equity Funds

y HDFC Growth Fund

y HDFC Long TermAdvantage Fund

y HDFC Index Fund

y HDFC Equity Fund

y HDFC Capital Builder Fund

y HDFC Tax saver

y HDFC Top 200 Fund

y HDFC Core & Satellite Fund

y HDFC Premier Multi-Cap Fund

y HDFC Long Term Equity Fund

y HDFC Mid-Cap Opportunity Fund

y Balanced Funds

y HDFC Children's Gift Fund Investment

Plan

y HDFC Children's Gift Fund Savings Plan

y HDFC Balanced Fund

y HDFC Prudence Fund

y Debt Funds

y HDFC Income Fund

y HDFC Liquid Fund

y HDFC Gilt Fund Short Term Plan

y HDFC Gilt Fund Long Term Plan

y HDFC Short Term Plan

y HDFC Floating Rate Income Fund ShortTerm Plan

y HDFC Floating Rate Income Fund LongTerm Plan

y HDFC Liquid Fund - PREMIUM PLAN

y HDFC Liquid Fund - PREMIUM PLUSPLAN

y HDFC Short Term Plan - PREMIUMPLAN

y HDFC Short Term Plan - PREMIUM PLUSPLAN

y HDFC Income Fund Premium Plan

y HDFC Income Fund Premium plus Plan


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Working of Mutual Fund.Working of Mutual Fund.


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STRUCTURE OF A MUTUAL

FUND:


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MutualMutual Fund InvestmentFund Investment

StrategiesStrategiesy Systematic Investment Plan (SIPs):

These are best suited for young people who have started their careersand need to build their wealth.

y SystematicWithdrawal Plan (SWPs):

These plans are best suited for people nearing retirement. In theseplans an investor invests in a mutual fund scheme and is allowed towithdraw a fixed sum of money at regular intervals to take care of expenses.

y SystematicTransfer Plan (STPs):

They allow the investors to transfer on a periodic basis a specifiedamount from one scheme to another within the same fund familymeaning two schemes belonging to the same mutual fund.

y One Time Investment:


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Mutual Funds relative to other comparable

financial products:Schemes Return Convenience Safety Volatility Liquidity

Equity HighModerate

Low High High

FI Bonds Moderate

HighHigh Moderate Moderate

Corporate

Debentures

ModerateLow

Moderate Moderate Low

Company fixed ixDeposits

ModerateModerate

Low Low Low

Bank Deposits Low

HighHigh Low High

PPF Moderate

HighHigh Low Moderate

Life Insurance LowModerate

High Low Low

Gold ModerateLow

High Moderate Moderate

Real Estate HighLow

Moderate High Low

Mutual Funds HighHigh

High Moderate High


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INTRA HDFC MUTUAL FUND SCHEMES PERFORMANCE

COMPARISION:

My Anal

ysis on HDFC schemes:-For the calculation of statistical variables, which are linked

to the market, we are calculating a common index. They

are:-HDFC GROWTH FUND BSE SENSEX

HDFC EQUITY FUND S&P CNX 500

HDFC TOP 200 BSE 200

HDFC CAPITAL BUILDER FUND S&P CNX 500

HDFC CORE AND SATELLITE FUND BSE 200

HDFC PREMIER MULTI CAP FUND S&P CNX 500

HDFC LONG TERM ADV. FUND BSE SENSEX

HDFC TAX SAVER S&P CNX 500


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CALCULATIONS:CALCULATIONS:I took Eight schemes ofHDFC of same market (Equity Diversified),

because we have to analyze all this with respect to market risk, hence

it is mandatory to choose same risk profiles scheme.

SCHEME SD BETA RP SR RANK-SR TR RANK-TR

HDFCGROWTH

FUND

10.90 0.9820 8.67 0.80 2 8.83 2

HDFC EQUITY

FUND

11.60 0.9390 7.54 0.65 3 8.03 3

HDFC TOP 200 10.90 0.9030 10.49 0.96 1 11.62 1

HDFC CAPITAL

BUILDER FUND

11.00 0.8690 -0.06 0.01 8 0.07 8

HDFC CORE AND

SATELLITE FUND

12.20 1.002 -1.53 0.13 5 1.53 6

HDFC PREMIER

MULTI CAP FUND

12.10 0.9740 1.53 0.13 6 1.57 5

HDFC LONG

TERM ADV. FUND

10.50 0.9350 -2.20 0.21 4 2.35 4

HDFC TAX SAVER 11.10 0.8890 -0.17 0.02 7 0.19 7


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ANALYSIS:ANALYSIS:

y Here all funds are of the equity-diversified

category.HDFC Top 200 has highest Sharpe

ratio among all these funds. More the value

of Sharpe Ratio we ranked them higherSimilarly, we can analyze all schemes.

y On the basis of Treynor Ratio also HT200

is ranked first.Higher the value of Treynor

ratio, higher the rank .We can relatively

analyze all the schemes among each other.


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FUND HOUSE SCHEME R-SR R-TR R ALPHA 0VER RANK

SBI MUTUAL

FUNDMAGNUM EQUITY 8 8 1 5

SBI MUTUAL

FUND

MAGNUM

GLOBA

L

15 15 15 15

SBI MUTUAL

FUND

MAGNUM

CONTRA7 5 9 8

RELIANCE

MUTUAL FUNDEQUITY 11 9 13 11

RELIANCE

MUTUAL FUND

EQUITY

OPPORTUNITY13 13 10 13

RELIANCE

MUTUAL FUNDGROWTH 2 6 2 3

HDFC MUTUALFUND

EQUITY 6 4 8 6

HDFC MUTUAL

FUNDGROWTH 4 3 6 4

HDFC MUTUAL

FUNDTOP 200 3 1 5 2

UTI MUTUAL

FUNDMASTERSHARE 10 7 12 10

UTI MUTUAL

FUND MA

STER VA

LUE 14 14 14 14

UTI MUTUAL

FUNDEQUITY 12 12 11 12

BIRLA MUTUAL

FUND

FRONTLINE

EQUITY1 2 3 1

BIRLA MUTUAL

FUNDINDIA GENNEXT 9 11 7 9

BIRLA MUTUAL

FUNDMID CAP 5 10 4 7


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ANALYSIS:ANALYSIS:

I have taken three-year return, standard deviation and beta of all the

schemes from web site and magazine.

We ranked all schemes according to Sharpe Ratio, Treynor Ratio,

Alpha, .Here we already suppose that there are only three products,

hence the sum of the all five ranking will tell something.

Frontline equity of birla sunlife Mutual Fund ranked 1 in all measure

hence this scheme will get total sum of rank 6. Similarly, we calculate

the sum of the respective scheme.

Lowest value of the sum has ranked first. The rest schemes ranked

accordingly. 6 is the lowest value among these, hence it ranked first.

Similarly, we ranked all schemes.


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OVERALL RANKOVERALL RANKFund House TotalTally Over Rank

SBI Mutual Fund 5+15+18 38

Reliance Mutual

Fund

11+13+3 27

HDFC Mutual

fund

6+4+2 12

UTI Mutual Fund 10+14+12 36

Birla Sunlife

Mutual

Fund

9+7+1 17


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There are only three product of each fund house,then the weighted ranking of scheme will giveweight to the fund house ranking.Suppose HDFC mutual fund get weightage by theirschemes (4 by Growth, 2 by Top 200 and by 6

Equity), and its weighted rank will be decided by thesum of these ranking.Similarly, we get the sum of all fund house schemesand evaluate the weighted ranking of the fundhouse.HDFC Mutual Fund has got least value of the

sum, hence it ranked first among these five-fundhouses. Rest fund house ranked accordingly.


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Findings:Findings:

y Study found that more young people are likely to involved in

financial activities. They more frequently visit banks and meet

financial advisors.

y Study shows professional advisors are considered to be more

reliable source of mutual funds information, not because they

provide human touch to investor but others are not aggressively

proposed, advertised, availed and used .

y An another observation made by study was , many a time advisors

themselves do not get timely updates fromAMCs. This leads them

not to offer some of schemes those may give good returns


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RECOMMENDATIONS:RECOMMENDATIONS:y

There are numbers of traditional ways of saving. They giveguaranteed return with low risk.High risk associated investment

options was not considered a right decision. India is a young

country having a considerably big part of young people. They need a

right direction for investment options.

y We need proper management of advisory services, more schemes,

financial advisors and institutions to cater untouched markets.

y Industry need to revise its business strategy. Investors perception

is not prioritized yet. Instead of completing targets, advisorsworking under institutions should consider the requirement of

investors. We need to change pattern of selling mutual funds

schemes.


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CONCLUSION:y Investors need a financial intermediary who provides the required

knowledge and professional expertise on successful investing.

y As the investor always try to maximize the returns and minimize

the risk. Mutual fund satisfies these requirements by providing

attractive returns with affordable risks.

y The fund industry has already overtaken the banking industry, more

funds being under mutual fund management than deposited with

banks.

y The rising stock market has also instilled greater confidence among

fund investors who are investing more into the market through the

MF route than ever before.


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THANK YOUTHANK YOU

piyush kumar-pg09073

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