rajitha final project copy

8/3/2019 Rajitha Final Project Copy

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INTRODUCTION

Mutual Fund is a non-depository, on-banking financial intermediary which acts as

important vehicle for bringing wealth holders and deficit units together indirectly.

Mutual funds are also suitable for those investors who do not have knowledge of

capital market and by investing through a mutual fund it can make use of knowledge of

specialized people which the mutual fund employs.

PIERCE, JAMES.L


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INTRODUCTION TO TITLE

The projects idea to Mutual Fund as the better avenue for investment Mutual Fund is

productive package for a lay-investor with limited finances. Common man in India still

assumes BANK as a safe door for investment. This Shows that Mutual Funds have not

gained a strong foothold in his life.

The project creates an awareness that the Mutual Fund is a worthy Investments

practice.. The various schemes of Mutual Funds provide the investor with a wide Range of

investment options according to his risk bearing capacities and interest, besides they also

give a handy return to the investor. The project analysis various schemes of Mutual Fund by

taking HDFC, ING VYSYA, LIC, TATA, & UTI. And comparative analysis of variousschemes in HDFC, ING VYSYA, LIC, TATA & UTI.

PURPOSE OF STUDY:

The study is basically made to analyses the various schemes to highlight the diversity

of investment that mutual funds offer.

The study is made to have a comparatives analyses of various companies i.e. HDFC,ING VYSYA, LIC, TATA & UTI.

Through the study one would understand how a common man could fruitfully convert

savings in to great penny by wisely investing in to the right scheme according to his risk

taking abilities.

OBJECTIVES:

The main objectives of the present study are as follows:

1. To determine the ground rules of mutual fund investing.

2. To study the growth of mutual funds in India

3. The objective of doing this project is to make a study of various Investment schemes

in the secondary market.

4. To ascertain the various fluctuations in different schemes of Mutual funds.


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5. To know how various schemes effects mutual fund investment and its performance

taking past records.

6. To assist the community at large in deciding which investment Provides best return

considering various points at a time.

7. To study the performance of selected mutual fund schemes (Equity, balanced,

liquidity) and their performance in 3 months.

8. To give a brief idea about the benefits available for mutual funds schemes i.e. Equity

Fund Scheme, Liquidity Fund Scheme, Balanced Fund Scheme from selected Mutual

Funds in the market.

RESEARCH METHODOLOGY

Research can be defined as the search for knowledge or any systematic

investigation to establish facts. The primary purpose forapplied research (as opposed

to basic research) is discovering, interpreting, and the development of methods and

systems for the advancement of human knowledge on a wide variety of scientific

matters of our world and the universe. Research can use the scientific method, but

need not do so.

Scientific research relies on the application of the scientific method, a harnessing of

curiosity. This research provides scientific information and theories for the

explanation of the nature and the properties of the world around us. It makes practical

applications possible. Scientific research is funded by public authorities, by charitable

organizations and by private groups, including many companies. Scientific research

can be subdivided into different classifications according to their academic and

application disciplines.

Artistic research, also seen as 'practice-based research', can take form when creative

works are considered both the research and the object of research itself. It is the

debatable body of thought which offers an alternative to purely scientific methods in

research in its search for knowledge and truth.

Historical research is embodied in the scientific method.
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The term research is also used to describe an entire collection ofinformation about a

particular subject.

Research processes

Scient if ic research

Generally, research is understood to follow a certain structuralprocess. Though step

order may vary depending on the subject matter and researcher, the following steps

are usually part of most formal research, both basic and applied:

Formation of the topic

Hypothesis

Conceptual definitions

Operational definition

Gathering ofdata

Analysis of data

Test, revising of hypothesis

Conclusion, iteration if necessary

A common misunderstanding is that by this method a hypothesis can be proven or

tested. Generally a hypothesis is used to make predictions that can be tested by

observing the outcome of an experiment. If the outcome is inconsistent with the

hypothesis, then the hypothesis is rejected. However, if the outcome is consistent with

the hypothesis, the experiment is said to support the hypothesis. This careful language

is used because researchers recognize that alternative hypotheses may also be

consistent with the observations. In this sense, a hypothesis can never be proven, but

rather only supported by surviving rounds of scientific testing and, eventually,

becoming widely thought of as true (or better, predictive), but this is not the same as it

having been proven.
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Artistic Research

One of the characteristics of Artistic Research is that it must accept subjectivity as

opposed to the classical scientific methods. As such, it is similar to social sciences in

using quantitative research and inter subjectivity as tools to apply measurement and

critical analysis.

Historical method

Main article: Historical method

The historical method comprises the techniques and guidelines by which historiansuse historical sources and other evidence to research and then to write history. There

are various history guidelines commonly used by historians in their work, under the

headings of external criticism, internal criticism, and synthesis. This includes higher

criticism and textual criticism. Though items may vary depending on the subject

matter and researcher, the following concepts are usually part of most formal

historical research:

Identification of origin date

Evidence of localization

Recognition of authorship

Analysis of data

to digout something and to unearth something or unveal something

Identification ofintegrity

Attribution ofcredibility

Research methods

The goal of the research process is to produce new knowledge, which takes three main

forms (although, as previously discussed, the boundaries between them may be

obscure.):
http://en.wikipedia.org/wiki/Quantitative_researchhttp://en.wikipedia.org/wiki/Intersubjectivityhttp://en.wikipedia.org/wiki/Historical_methodhttp://en.wikipedia.org/wiki/Historical_methodhttp://en.wikipedia.org/wiki/Historicalhttp://en.wikipedia.org/wiki/Higher_criticismhttp://en.wikipedia.org/wiki/Higher_criticismhttp://en.wikipedia.org/wiki/Textual_criticismhttp://en.wikipedia.org/wiki/Identification_(information)http://en.wikipedia.org/wiki/Evidencehttp://en.wikipedia.org/wiki/Recognitionhttp://en.wikipedia.org/wiki/Analysishttp://en.wikipedia.org/wiki/Integrityhttp://en.wikipedia.org/wiki/Credibilityhttp://en.wikipedia.org/wiki/Quantitative_researchhttp://en.wikipedia.org/wiki/Intersubjectivityhttp://en.wikipedia.org/wiki/Historical_methodhttp://en.wikipedia.org/wiki/Historical_methodhttp://en.wikipedia.org/wiki/Historicalhttp://en.wikipedia.org/wiki/Higher_criticismhttp://en.wikipedia.org/wiki/Higher_criticismhttp://en.wikipedia.org/wiki/Textual_criticismhttp://en.wikipedia.org/wiki/Identification_(information)http://en.wikipedia.org/wiki/Evidencehttp://en.wikipedia.org/wiki/Recognitionhttp://en.wikipedia.org/wiki/Analysishttp://en.wikipedia.org/wiki/Integrityhttp://en.wikipedia.org/wiki/Credibility


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Exploratory research, which structures and identifies new problems

Constructive research, which develops solutions to a problem

Empirical research, which tests the feasibility of a solution using empiricalevidence

The research room at the New York Public Library, an example of secondary

research in progress.

Research can also fall into two distinct types:

Primary research

Secondary research

In social sciences and later in other disciplines, the following two research methods

can be applied, depending on the properties of the subject matter and on the objective

of the research:

Qualitative research

Quantitative research

Research is often conducted using the hourglass model Structure of Research[1]. The

hourglass model starts with a broad spectrum for research, focusing in on the required

information through the methodology of the project (like the neck of the hourglass),

then expands the research in the form of discussion and results.
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Data collection methods

Data Collection is an important aspect of any type of research study. Inaccurate data

collection can impact the results of a study and ultimately lead to invalid results.

Data collection methods for impact evaluation vary along a continuum. At the one end

of this continuum are quantitative methods and at the other end of the continuum are

Qualitative methods for data collection.

Data collection mainly in two types

1) Primary data

2) Secondary data

Primary data

In primary data collection, you collect the data yourself using methods such as

interviews and questionnaires. The key point here is that the data you collect is unique

to you and your research and, until you publish, no one else has access to it.

There are many methods of collecting primary data and the main methods include:

questionnaires

interviews

focus group interviews

observation

case-studies

diaries

critical incidents

Portfolios.

Secondary data
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Secondary data is data collected by someone other than the user. Common sources of

secondary data for social science include censuses, surveys, organizational records

and data collected through qualitative methodologies orqualitative research. Primary

data, by contrast, are collected by the investigator conducting the research.

Secondary data analysis saves time that would otherwise be spent collecting data and,

particularly in the case of quantitative data, provides larger and higher-quality

databases than would be unfeasible for any individual researcher to collect on their

own. In addition to that, analysts of social and economic change consider secondary

data essential, since it is impossible to conduct a new survey that can adequately

capture past change and/or developments.

Sources of secondary data

As is the case in primary research, secondary data can be obtained from two different

research strands:

Quantitative: Census, housing, social security as well as electoral statistics and other

related databases.

Qualitative:Semi-structuredandstructured interviews,focus groups transcripts,

field notes, observation records and other personal, research-related documents.A clear benefi t of using secondary data is that much of the background

work needed has been a lr eady been car ri ed out , f or example :

l it er at ure r ev iews , c as e s tud ie s migh t have been car ri ed out ,

p ub li sh ed t ex ts a nd s ta ti st ic c ou ld h av e b ee n a lr ea dy u se d

elsewhere , media promot ion and personal contacts have a lso been

uti l ized.

SCOPE OF THE STUDY :
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1. The study is pertained to five Mutual Funds Sponsored by (AMC) namely HDFC,

ING VYSYA, LIC, TATA & UTI.

2. The project report covers the study of Net Asset Value (NAV) of selected mutual fund

schemes.

3. The analysis part includes the Net Asset Value (NAV) charts, which gives the clear

picture of the present value of the mutual fund company.

4. Due to the time factor only three scheme i.e. Income Scheme, Liquidity Scheme,

Balanced Scheme are taken for computation.

5. The study covers only 3 months data starting with 01-12-2009 to 29-02-2010.

PERIOD OF THE STUDY:

The period of the study is taken 13 weekends 01-12-2009 to 29-02-2010.

The data is collect the data from 01-12-2009 to 29-02-2010.

DATA ANALYSIS:

To study the currently available schemes are taken the fact sheets available with the

Macs. The fact sheet provides the historical data about the various schemes offered by the

AMC, investment pattern, dividend history, ratings given, funds manager's credentials, etc.

The following schemes in open -Ended category are analyzed.

1. Balanced Scheme

2. Income Scheme

3. Liquidity Scheme.

The Mutual Fund Schemes of following AMC'S have been taken for study

BASIS FOR ANALYSIS:Net Asset Value (NAV) is the best parameter on which the performance of mutual

fund can be studied. We have studied the performance of the NAV based on the weekends of

the Scheme in terms of appreciation of NAV, issues. We have compared the week end returns

of various schemes to get idea about their relative standings.


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LIMITATION S OF THE STUDY :

The concept of Mutual Funds is like an ocean, so a detailed study of each and every

component of this concept is not studies because of the limited time constraint.

The data colleted for this study are limited to open-ended schemes

Study is contained to selective mutual funds only.

The study is limited to comparative analysis of three types of scheme. I.e. Liquidity

Scheme, Growth Scheme & Balanced Scheme of the selective mutual funds.

The data is collected from internet, from the websites of respective AMC, s so the

accuracy of facts may be limited.

The study is conducted in short period, due to which the study may not be detailed in

all aspects.

Performance of Net Asset is not given in full details.

The observations & conclusions may not applicable in real time industry as the study

confined to specific period and usage of limited statistical tools.

SWOT ANALYSIS OF MUTUAL FUNDS

STRENGTHS

1. Simplify speed and quality of services offer by mutual fund companies.

2. As on investment tool for the investors to boost their savings.

3. Wide range of investment schemes offered by mutual fund companies to meet

various requirements of investors.

WEAKNESS

NAV range doesnt seem to fit in with corporate compensations. There is positioning

and pricing problem.

Delay is in infrastructure development may dampen the growth rate of NAVs of

different schemes. Which in turn affect investors to invest?


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Deregulation of interest rates may affect the

profitability of companies.

Stiff competition from existing mutual fund

companies and new entrants.

OPPORTUNITIES

Perceptive changes in life style.

Addition of level of new class of entrepreneurs to the board base of middle class of

the market.

The range of schemes and services offered by mutual fund companies is large enough

for all investors to have a slice of cake.

The falling interest rates would make to raise capital at less cost. Hence more

opportunities for companies.

Globalization is buying fresh opportunities in terms of foreign tie-ups.

THREATS

Risk of scams

Several increase in the competition among mutual companies result in decreasing

the spread.


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ABOUT THE COMPANY

Zen Securities Limited is one of the leading stock broking companies based in Andhra

Pradesh, India with an extensive network of over 100 trading terminals spread over Andhra

Pradesh and Tamil Nadu.

Zen Securities Limited is one of the leading stock broking companies based in Andhra

Pradesh, India with an extensive network of over 100 trading terminals spread over Andhra

Pradesh and Tamil Nadu.

Zen Securities Limited (ZSL) is led by a highly experienced and respected team,

which offers unique perspectives and excellent customer service to our clients. We offer awide array of products and services including equities, futures & options, mutual funds,

portfolio management services, public issues, commodities and depository services among

others, to help our clients reach their personal financial goals

Zen prides itself on the strength of its people, who offer valuable advice based on

fundamental/technical research and pragmatic investment strategies, which guide our clients

in the right direction.

Memberships

ZSL is members of the top exchanges and professional organizations of India.

Currently, ZSL is a registered member of the Capital Market and Futures & Options

segments of The National Stock Exchange of India Ltd. (NSE) and a member of the Capital

Market segment of The Stock Exchange, Mumbai (BSE.)

ZSL is a Depository Participant (DP) with the National Securities Depository Ltd.

(NSDL) and the Central Depository Services Ltd. (CDSL.)

ZSL is also a SEBI Registered Portfolio Manager and offer Portfolio Management

Services to our clients.


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The company has two Subsidiaries

1. Zen Comtrade Pvt. Limited:

A 100% subsidiary of ZSL and is a member of National Commodities & Derivatives

Exchange Limited (NCDEX), an exchange co-promoted by NSE and ICICI and the Multi

Commodity Exchange (MCX.)

2. Zen Insurance Services Pvt. Limited:

A 100% subsidiary of ZSL, it has applied for a license as an Insurance broker and the

same is under consideration by Insurance Regulatory Development Authority (IRDA).

Zen Securities Limited boasts a rich history of nearly two decades and continues to

innovate in everything it does.

ZSL is promoted by Mr. Ravindra Babu Kantheti, a prominent stockbroker and well-

respected personality in the stock broking and investing communities.

ZSL commenced its membership on The Hyderabad Stock Exchange Ltd., Hyderabad

as a proprietary concern of M/s K. Ravindra Babu in 1986, which was corporatised in

February 1995 to Zen Securities Ltd. Since those days, we also have the distinction of being

the first corporate member from Hyderabad and also the first Andhra Pradesh based broking

firm to start trading on the National Stock Exchange (NSE.)

Although we are proud of our past achievements, we are a forward-looking institution

and are thus geared to continue to thrive in the future, along with our valuable clients

Zen Securities Limited - Team Profile

The people of Zen Securities have considerable experience and talents ranging over

many industries such as financial services, pharmaceuticals, banking and I.T. among others.

They are some of the most highly respected people in their professional circles.


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Mr. Ravindra Babu Kantheti - Managing Director

Mr. Ravindra Babu Kantheti is the main promoter of Zen Securities Ltd. Under his

leadership, Zen has grown to become a leading provider of financial services. He is a

prominent stockbroker and well-respected personality in the stock broking and investing

communities and he serves as the Managing Director of our company. He has a Masters

degree in Applied Physics with a specialization in the field of Instrumentation.

Mr. Sambasiva Rao Patibandla - Executive Director

Mr. Sambasiva Rao has a Masters degree in Pharmacy. From a Premier Instutue

Mr. Gandhi Kantheti - C.E.O

Mr. Gandhi Kantheti is one of the founder directors of the company and is presently

based in U.S. He provides Zen with insights into global investments and technological

practices. He is involved in providing critical overseas support to the company and is in

charge of our Non-Resident Indian (NRI) services. He holds a Masters degree in Electrical

and Communication Engineering from IIT Bombay.

Mr. Narayanan -.Director

Mr. Narayanan is a very experienced Investment Analyst and Tax Consultant

possessing a deep understanding about investments and stock market dynamics.

Mr. Ajay Kumar Mikkilineni.-.Director

Mr. Ajay Kumar Mikkilineni is an M Sc (Agri)

Mr. Pratap Kantheti.-.Executive Director


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Mr. Pratap Kantheti is a Chartered Financial Analyst (CFA) and also has a Masters in

Business Administration (MBA) in Finance.

Mr. Satyanarayana Ch. Ravi.-.Director

Mr. Satyanarayana Ch. Ravi has a Chemical Engineering. Degree from a Premier

Institute

Mr. Satish Kantheti.-.Director

Mr. Satish Kantheti is a Chartered Financial Analyst (CFA) and also has a Masters in

Business Administration (MBA) in Finance.

Mr. Namashivaya Renukuntla.-.Director, Zen Comtrade and Head of Compliance

Mr. Namashivaya Renukuntla is a Mechanical Engineering and a Masters in Business

Administration (MBA.)

SERVICES

1 Services offered by Zen Securities Limited

2 Investment advisory services Portfolio Management Services.

3 Trading on NSE (Capital Market segment ), BSE and HSE

4 Trading on Futures and Options on the NSE

5 Demat Accounts & Guidance to client in Dematerialization of physical shares.

6 Tax saving Bonds and instruments

7 Guidance to NRI clients regarding investing in the Indian Markets

8 IPOs / Fixed income / Mutual Funds


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REVIEW OF LITERATURE

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.

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 theRegulatory 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 Canara bank 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.

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.


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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.

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.


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The graph indicates the growth of assets over the years.

GROWTH IN ASSETS UNDER MANAGEMENT

Note: 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 onwards.

ADVANTAGES OF MUTUAL FUND:

The following are the major advantages offered by mutual funds to all investors:

2 Professional Management


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3 Portfolio diversification

4 Convenient administration

5 Return potential

6 Low cost

7 Liquidity

8 Transparency

9 Flexibility

10 Affordability

11 Choice of schemes

12 Well regulatory

Professional Management:

Mutual Funds provide the services of experienced and skilled professionals, backed

by a dedicated investment research team that analyses the performance and prospects of

companies and selects suitable investments to achieve the objectives of the scheme.

Diversification:

Mutual Funds invest in a number of companies across a broad cross-section of

industries and sectors. This diversification reduces the risk because seldom do all stocks

decline at the same time and in the same proportion. You achieve this diversification through

a Mutual Fund with far less money than you can do on your

own.

Convenient Administration:

Investing in a Mutual Fund reduces paper work and helps you avoid many problems

such as bad deliveries, delay payments and follow up with brokers and companies. Mutual

Funds save your time and make investing easy and convenient.

Return Potential:

Over a medium to long - term, Mutual Funds have the potential to provide a higher

return as they invest in a diversified basket of selected securities.


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Low Costs:

Mutual Funds are a relatively less expensive way to invest compared to directly;

investing in the capital markets because the benefits of scale in brokerage, custodial and otherfees translate into lower costs for investors.

Liquidity:

In open - end schemes, the investors gets the money back promptly at net asset value

related prices from the Mutual Fund. In closed- end schemes, the units can be sold on a stock

exchange at the prevailing market price or the investor can avail of the facility of direct

repurchase at NAV related prices by the Mutual Fund.

Transparency:

You get regular information on the value of your investment in addition to disclosure

in the specific investments made by your scheme, the proportion invested in each class ofassets and the fund managers investment strategy and outlook.

Flexibility:

Through features such as regular investment plans, regular withdrawal plans and

dividend reinvestment plans, you can systematically invest or

withdraw funds according to your needs and convenience.

Affordability:

Investors individually may lack sufficient funds to invest in high grade stocks. A

mutual fund because of its large corpus allows even a small investor to take the benefit of its

investment strategy.

Choice of schemes:

Mutual Funds offer a family of schemes to suit your varying needs over a lifetime.


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1 Money market funds

2 Gilt funds

3 Debt funds

4 Equity funds

5 Hybrid funds

6 Commodity funds

7 Real funds

Money Market Funds:

Money market funds invest in securities of a short term nature, which generally means

securities of less than one-year maturity. The typical, short-term, interest-bearing instruments

these funds invest in include treasure bills issued by governments, certificates of deposit

issued by banks and commercial paper issued by companies. Money market funds also invest

in the inter-bank money market.

The major strengths of money market funds are the liquidity and safety of principal

that the investors can normally expect from short-term investments.

Gilt Funds:

Gilts are government securities with medium to long - term maturities, typically of

over one year. Gilt funds that invest in government paper called dated securities. The issuer is

the governments of India; these funds have little risk of default and hence offer better

protection of principal. Debt securities prices fall when interest

rate levels increase.

Debt funds: (income funds)

Debt funds invest in debt instruments issued not only by governments, but also by

private companies, bank and financial institutions and other entities such as infrastructure

companies. By investing in debt, these funds target low risk and stable income for the

investor as their key objectives. As compared to gilt funds, general debt funds do have a

higher risk of default by their borrowers.

Debt funds are largely considered as income funds as they do not target capital

appreciation, high current income, and therefore distribute a substantial part of their surplusto investors.


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1 Diversified debt funds

2 Focused debt funds

3 High yield debt funds

4 Assured return funds

5 Fixed term plan series

Equity Funds:

There are a large variety of equity funds and all of them are not equally risk - prone.

Investors and their advisors and their advisors need to sort out and select the right equity fund

that suits their risk appetite.

Equity funds invest a major portion of their corpus in equity shares issued by

companies, acquired directly in initial public offerings or through the secondary market.

1 Aggressive growth funds

2 Growth funds

3 Specialty funds

4 Diversified equity funds

5 Equity index funds

6 Value funds

7 Equity income funds

Hybrid Funds:

There are three major mutual fund types money

market, debt and equity. Money mutual funds mix these

different types of securities in their portfolios. There are

funds that seek to hold a relatively balanced holding of debt and equity securities in the

portfolios. Such funds are termed as they have a dual equity/bond focus. Some of the funds in

this category are described below.

1Balanced funds


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2Growth - and - income funds

3Asset allocation funds

Commodity Funds:Commodity funds specialize in investing in different commodities directly or through

shares of commodity companies or through commodity futures contracts.

A most common example of commodity funds is called precious metals funds. Gold

funds invest in gold, gold futures or shares of gold mines. Commodity funds have not yet

developed.

Real estate Funds:Real estate funds would invest in real estate directly, or may fund real estate

developers, or lend to them, or buy shares of housing finance companies or may even buy

their securitized assets. The funds may have a growth orientation or seek to give investors

regular income.

Significance of Mutual Funds:It must be appreciated that no specific class or type is universally accepted as the best

option. Each type of fund comes with its pros and cons and a unique risk-return relationship.

It is up to the investor to decide the type that best suits his requirements and matches his

objectives.

The reader should not have too much difficulty in seeing the relatively minor

differences in classifications or names of fund types. To help Yet a better understanding, we

have developed the enclosed chart that lists the mutual fund types in order risk levels.

STRUCTURE OF MUTUAL FUNDS

Structure of Mutual Funds in India:


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India has a legal frame work with in which mutual funds must be constituted. Unlike

in the UK, where two distinct trust and corporate. A mutual fund in India is allowed to

issue open-end and closed-end schemes under a common legal structure.

The structure which is required to be followed by followed by mutual funds in India is

laid down under SEBI (mutual fund) regulation, 1996.

1The fund sponsor

2Mutual funds as Trusts

3Trustees

4The asset management company

5Independent directors and trustees

The fund sponsor:

Sponsor is defined under SEBI regulations as any person who, acting alone or in

combination with another body corporate, establishes a mutual fund. The sponsor of a fund is

akin to the promoter of a company, the fund registered with SEBI. The sponsor will form a

trust and appoint a board of trustees. The sponsor will also generally appoint an Asset

management company as fund managers. All these appointments are made in accordancewith SEBI regulations.

Mutual Funds as Trusts:

A mutual fund in India is constituted in the form of a public trust created under the

Indian trusts act, 1882. The fund sponsor acts as the settler of the trust, contributing to its

initial capital and appoints a trustee to hold the assets of the trust for the benefit of the unit-holder, who are the beneficiaries of the trust.

Trustees:

Most of the funds in India are managed by board of trustees. The trust is created

through a document called the trust deed that is executed by the fund sponsor in favour of the


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trustees. The trust deed is required to be stamped as registered under the provisions of Indian

registration act and registered with SEBI.

The Asset Management Company:The role of an AMC is to act as the investment manager of the trust. The sponsor, or

the trustees, if so authorized by the trust deed, appoints the AMC. The AMC appointed is

required to be appointed is required to approve by SEBI. The AMC of a mutual fund must

have a net worth of at least Rs.10 crores at all times. The AMC cannot act as a trustee of any

other mutual fund.

Independent Directors and Trustees:In any service contracts with affiliates to ensure higher than market-level fees have

not been charged by the AMC to the fund, any securities transactions with affiliates if

permitted, by the AMC. The independent trustees must also design a code of ethics for the

securities transactions.

SETUP OF A MUTUAL FUND

A Mutual fund is set up in the form of a trust, which has sponsor, trustees, Asset

Management Company (AMC) and custodian. The trust is established by a sponsor or more

that one sponsor who is like promoter of a company. The trustees of the mutual fund hold its

property for the benefit of the unit holders. Asset Management Company (AMC) approved

be SEBI manages the funds by making investments in various types of securities. Custodian,

who is registered with SEBI, holds the securities of various schemes of the fund in its

custody. The trustees are vested with the general power of superintendence and direction

over AMC. They monitor the performance and compliance of

SEBI Regulations by the mutual fund.

NET ASSET VALUE (NAV)


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The performance of a particular scheme of a mutual fund is denoted by Net Asset

Value (NAV). Net asset value of mutual fund scheme represents the market value of a single

unit of the scheme on any given business day.

When you invest your money in any mutual fund, you are allotted units at a certain

price. This price, measured per unit, is called the NAV or the Net Asset value of the unit.

So, just like a share is bought and sold at a price, or a bond is traded at a value, a mutual fund

is bought and sold at its NAV. Simply put, a funds NAV is its assets divided by the number

of outstanding units.

A mutual fund is a proxy route for investors to access the stock and bond markets.

Mutual funds collect money from investors and buy shares/bonds on their behalf. These

investments the fund makes in the market are its assets. There are, however, some short-term

liabilities too in the funds balance sheet. These liabilities and any fund expenses are

deducted from its assets to get the net assets. Net assets are defined as assets minus

liabilities. Mutual funds compute the share of each investor on the basis of the value of net

assets per unit, commonly know as NAV.

Net assets of schemes

SEBIS formula for NAV: -----------------------------------

Number of Units outstanding

For example, if the market value of securities of a mutual fund scheme is Rs 200

lakhs & the mutual fund has issued 10 lakh units of Rs.10 each to the investors, then the

NAV per unit of the fund is Rs. 20. NAV is required to be disclosed on a regular basis daily

or weekly depending on the type of scheme.

Calculation of Net Asset Value (NAV)

The most important part of the calculation is the valuation of the assets owned by the

fund. Once it is calculated, the NAV is simply the net value of assets divided by the number

of units outstanding. The detailed methodology for the

calculation of the asset value is given below.

Asset value is equal to Sum of market value of shares/debentures.


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+ Liquid assets/cash held, if any

+ Dividend/interest accrued

Amount due on unpaid assets

Expenses accrued but not paid

COST INVOLVED IN MUTUAL FUNDS

Ah that all important question what kind of hole will it burn in your pocket! Well,

there are a few charges involved, but if you think of all the bother theyre saving you and the

money that you stand to earn, you wont mind paying up.

In addition to what are called loads (explained below), a mutual fund also

charges asset management fees and certain other expenses. These charges compensate the

fund for the expenses it incurs in managing assets, processing transactions and paying

brokerages. For instance, every redemption request involves not only administrative

processing costs but also others costs associated with raising money to pay off the outgoing

investor.

However, it will please you to know that theres nothing arbitrary about these

charges. For example, regulations stipulate that the difference between the repurchase andthe resale price cannot exceed 7% of same price, and that recurring expenses cannot exceed

2.5% of average weekly net assets. The recurring expenses limit is even lower for schemes

with a size exceeding Rs.100 crores in net assets. So if ever you get the feeling that youre

being fleeced dont, because theres somebody making sure that all is fair and square.

Loads

Dont look at these as a burden; just think of them as

tolls you pay on the highway to big money.

Entry Load/Sale Load

This is the charge imposed at the time you enter a fund as an investor. You pay for

the value of the units plus an additional charge. That additional charged is termed entry/saleload. Funds usually charge an entry load ranging between 1.00 % and 2.00%.


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For e.g. Let us assume an investor invests Rs. 10,000/- and the current NAV is Rs.

13/-. If the entry load levied is 1.00%, the price at which the investor invests is Rs. 13.13 per

unit. The investor receives 10,000/13.13 = 761.6146 units. (Notes that unit are allotted to an

investor based on the mount invested and not on the basis of no of units purchased)

Exit Load/Repurchase Load

The opposite of the above! This is what you cough up at the time of our exit from the

scheme. Operationally, therefore, what you get back from the mutual fund will be the value

of the units minus the exits charge. Exit loads vary between 0.25% and 2.00%.

Recurring ExpensesApart from Loads mutual funds also charge some other expenses, such as:

Trustees Fees

These are fees payable to the trustees for managing the trust.

Custodian Fees

These are paid b the fund to its custodians, the organization which handles the

possessing of the securities invested in by the fund.

UNDERSTANDING AND MANAGING RISK

Having understood the basics of mutual funds the next step is to build a successful

portfolio, one should understand some other elements on mutual fund investing and how they

can affect the potential value of your investments over the years. The first thing that has to

be kept in mind is that when you invest in mutual funds, there

is no guarantee that you started our with. That is, the potential

of loss is always there. The loss of value in your investments is

what is considered risk in investing.

Risk then, refers to the volatility the ups and downs in the market and the individual

issues that occur constantly over time. This volatility can be caused by a number of factors

interest rate changes, inflation or general economic condition.


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Types of Risks

Market Risk:

There are times when the price of securities in a particular market rise or fall due to

certain outside influencing factors. This could affect large as well as small businesses.

Credit Risk:

The ability of a company to repay investors money or to make interest payments

determines the credit risk that investors face

THE GROUND RULES OF MUTUAL FUND INVESTING

Moses gave to his followers 10 commandments that were to be followed till eternity.

The world of investments too has several ground rules meant for investors who are novices in

their own right and wish to enter the myriad world of investments. These come in handy for

there is every possibility of losing what one has if due care is not taken.

Investors Rights and Obligations

Assess yourself

Self-assessment of ones needs; expectations and risk profile is of prime importance

failing which; one will make more mistakes in putting money

in capacity one has and also clearly state the expectations

from the investments. Irrational expectations will only bring

pain.

Try to understand where your money is going

It is important to identify the nature of investment and to know if one is compatible

with the investment. One can lose substantially if one picks the wrong kind or mutual fund.


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In order to avoid any confusion it is better to go through the literature such as offer document

and fact sheets that mutual fund companies provide on their funds.

Dont rush in picking funds, think firstOne first has to decide what he wants the money for and it is this investment goal that

should be the guiding light for all investments done. It is thus important to know the risks

associated with the fund and align it with the quantum of risk one is willing to take. One

should take a look at the portfolio of the funds for the purpose. Excessive exposure to any

specific sector should be avoided, as it will only add to the risk of the portfolio. Mutual funds

invest with a certain ideology such as the Value Principle or Growth Philosophy. Both

have their share of critics but both philosophies work for investors of different kinds.

Identifying the proposed investment philosophy of the fund will give an insight into the kind

of risks that it shall be taking in future.

Dont Put all eggs in one basket

This old age adage is of utmost important. No matter what the risk profile of a person

is, it is always advisable to diversify the risks associated. So putting ones money in different

asset classes is generally the best options as it averages the risks in each category. Thus, even

investors of equity should judicious and invest some portion of the investment in debt.

Diversification even in any particular asset class (such as equity, debt) is good. Not all fund

managers have the same acumen of fund management and with identification of the best man

being a tough task; it is good to place money in the hands of several fund managers. This

might reduce the maximum return possible, but will also reduce the risks.

Do your homework

It is important for all investors to research the avenues available to them irrespective

of the investor category they belong to. This is important

because an informed investor is in a better decision to make

right decisions. Having identified the risks associated with

the investment is important and so one should try to know

all aspects associated with it. Asking the intermediaries is one of the ways to take care of the

problem.


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Find the fight funds

Finding funds that do not charge much fees is of importance, as the fee charged

ultimately goes from the pocked of the investor. This is even more important for debt funds

as the returns from these funds are not much. Funds that charge more will reduce the yield tothe investor. Finding the right funds is important and one should also use these funds for tax

efficiency. Investors of equity should keep in mind that all dividends are currently tax-free in

India and so their tax liabilities can be reduced if the dividend payout option is used.

Investors of debt will be charged a tax on dividend distribution and so can easily avoid the

payout options.

REGULATORY ASPECTS OF MUTUAL FUNDS

Schemes of a Mutual Fund

The asset management company shall launch no scheme unless the trustees approve

such scheme and a copy of the offer document has been filed with the Board.

Every mutual fund shall along with the offer document of each scheme pay filing

fees.

The offer document shall contain disclosures which are adequate in order to enable the

investors to make informed investment decision including the disclosure on maximum

investments proposed to be make by the scheme in listed securities of the group companies of

the sponsors A close-ended scheme shall be fully redeemed at the end of the maturity period.

Rules regarding Advertisement

The offer document and advertisement materials shall not be misleading or contain

any statement or opinion, which are incorrect or false.

Restrictions On Investment

A mutual fund scheme shall not invest more than 15% of its NAV in debt instrument

issued by a single issuer, which are rated not below investment grade by a credit rating

agency authorized to carry out such activity under the Act. Such investment limit may be


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extended to 20% of the NAV of the scheme with prior approval of the Board of Trustees and

the Board of Asset Management Company.

A mutual fund scheme shall not invest more than 10% of its NAV in unrated debt

instruments issued by a single issuer and the total investment in such investments shall not

exceed 25% of the NAV of the scheme. All such investments shall be made with the prior

approval of the Board of Trustees and the Board of asset management company.

No mutual fund scheme shall invest more than 10% of its NAV in the equity shares or

equity related instruments of any company. Provided that, the limit of 10% shall not be

applicable for investments in index fund or sector or industry specific scheme.

A mutual fund scheme shall not invest more than 5% of its NAV in the equity shares

or equity related investments in case of open-ended scheme and 10% of its NAV in case

close-ended.


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.Chapter IV

DATA ANALYSIS

&

INTERPRETATION


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INTRODUCTION TO FUNDS

HDFC MUTUAL FUND:

1.

Scheme : HDFC Balance Fund

Type : Open ended balance fund

Inception date : Set-11-2000

Fund size in Rs. Crorres : 11.42

Minimum investment : 5000

Asset allocation : Normal Allocation (% of Net Assets) 60% in Equities

& 40% debt securities & Money Market instruments.

Entry load : 2.25%

Exit load : 0%

Investment objective : To generate capital appreciation along with current

income from a combined portfolio of equity & equity

related and debt.

Fund manager : Tushar Pradhan

2.

Scheme : HDFC Income Fund

Type : Open ended Income fund

Inception date : Dec-08-1994

Fund size in Rs. Crores : 290.73


Asset collection : Normal Allocation (% of net asset)

Entry load : 2.25%

Exit Load : 0%

Investment objective : To achieve capital appreciation

Fund manager : Prashanth Jain


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3.

Scheme : HDFC Liquid Fund

Type : Open ended Liquid fund

Inception date : Oct-17-2000



Asset allocation :

Entry load : 0%

Exit load : 0%

Investment objective :

Fund manager : Shobit Malhothra


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ING VYSYA MUTUAL FUND:

1.

Scheme : ING Balanced

Type : Open ended Balanced fund

Inception date : Apr-25-2000



Entry load : 0%

Exit load : 0%

Investment objective : The investment objective of this scheme is to generate

long-term capital appreciation and current income from

a portfolio of equity and fixed income securities .This

scheme will , under normal market conditions,

investment approximately 60% of its net assets in

equity and equity related instruments with the balance

40% being invested in fixed income securities , money

market instruments , cash and cash equitants ,through

these % may vary .

Fund manager : Gaurav Narain.

2.

Scheme : ING Income Fund


Inception date : Feb-22-2002



Entry load : 2%

Exit Load : 0%

Investment objective : The objective of the scheme is to provide long-term

capital appreciation from portfolio that is invested


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predominantly in high quality equity and equity related

securities .

Fund manager : Gaurav Narain

3.

Scheme : ING Liquid Fund

Type : Open ended liquid fund

Inception date : Dec-30-1999



Entry load : 0%

Exit load : 0%

Investment objective : To provide reasonable returns while providing a high

level of liquidity and low risk by investing primarily in

money market and debt securities .The aim is to

optimize returns while providing liquidity.

Fund manager : Ramachandram


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LIC MUTUAL FUND:

1.

Scheme : LIC MF Balanced Fund

Type : Open ended

Inception date : Jan-01-1991



Entry load : 1.50%

Exit Load : 0%

Investment objective : To generate capital appreciation along with current

income from a combined portfolio of equity related

funds.

Fund manager : JS Zala

2.

Scheme : LIC MF Income Fund

Type : Open ended




Entry load : 2%

Exit Load : 0%

Investment objective : Capital appreciation through investing in equity and

generate income through debt.

Fund manager : Bichitra Mahapatra.

3.


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Scheme : LIC MF liquid Fund

Type : Open ended

Inception date : Mar-18-2002



Entry load : 0%

Exit Load : 0%

Investment objective : To achieve capital appreciation

Fund manager : Anjali Desai


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TATA MUTUAL FUND:

1.

Scheme : TATA Balanced Fund

Type : Open ended

Inception date : Oct-08-1995



Entry load : 1.75%

Exit Load : 0%

Investment objective : To provide income distribution and/or medium to long

term capital gains while at all times emphasizing the

importance of capital appreciation.

Fund manager : Venugopal

2.

Scheme : TATA Income Fund


Inception date : May-24-1996



Entry load : 2.25%

Exit Load : 0%

Investment objective : To provide income distribution and/or medium to long

term capital gains while at all times emphasizing the

importance of capital appreciation.

Fund manager : S.Sankaranarayanan

3.


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Scheme : TATA liquid fund

Type : Open ended

Inception date : Aug-30-1998



Entry load : 0%

Exit Load : 0%

Investment objective : The objective of the scheme is to generate reasonable

returns along with high liquidity and safety by investing

in a portfolio of money market and other short term

debt instrument.

Fund manager : S.Sankaranarayanan


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UTI MUTUAL FUND:

1.

Scheme : UTI Balanced Fund

Type : Open ended




Entry load : 2.25%

Exit Load : 0%

Investment objective : An open ended balanced fund investing between 40% to

60% in equity related securities and the balance in debt

(fixed income securities ) with a view to generate

regular income together with capital appreciation.

Fund manager : David Pezarkar.

2.

Scheme : UTI Income Fund

Type : Open ended

Inception date : May-18-1992



Entry load : 2.25%

Exit Load : 0%

Investment objective : An open-ended equity fund aiming to provide benefit of

capital appreciation and income distribution through

investment in equity.

Fund manager : Siddarth Dernbi

3.


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Scheme : UTI Liquid Fund

Type : Open ended

Inception date : Jul-23-2002



Entry load : 0%

Exit Load : 0%

Investment objective : The scheme seeks to generate steady & reasonable

income with low risk and high level of liquidity from a

portfolio of money market securities and high quality

debt.

Fund manager : Amardeep S.Chopra/Alok Sahoo


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A COMPARATIVE ANALYSIS OF BALANCE MUTUAL FUND

SCHEMES

NAVS IN RS WEEKEND

Name of

the M.F

Schemes

W1

07-12-

09

W2

14-12-

09

W321-

12-7-09

W4

28-12-

09

W5

4-01-10

W6

11-01-

10

W7

18-01-

10

W8

25-01-

10

W9

1-02-10

W10

8-02-10

W11

15-02-

10

W12

22-02-

10

W13

29-02-

10

HDFC

BMF

22.135 22.784 22.144 20.465 21.135 20.869 20.096 19.308 19.211 18.892 18.946 18.725 18.940

ING VY

BMF

18.170 18.550 17.730 18.520 18.920 18.690 17.680 16.970 16.520 16.150 16.510 16.090 16.300

LIC BMF 14.582 15.436 14.702 15.553 16.196 15.269 14.425 14.360 12.750 12.575 12.250 12.119 12.423

TATA

BMF

52.421 51.986 49.939 52.409 54.597 53.054 50.400 48.045 46.927 45.553 46.151 44.914 45.615

UTI BMF 26.450 25.980 25.660 26.750 27.420 26.810 25.730 24.751 24.230 23.730 24.210 23.640 24.040

-0.1

-0.08

-0.06

-0.04

-0.02

0

0.02

0.04

0.06

0.08

W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13

HDFC BMF

INGVY BMF

LIC BMF

TATA BMF

UTI BMF

A COMPARATIVE ANALYSIS OF BALANCE MUTUAL FUND SCHEMES

RETURNS IN RS


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A COMPARATIVE ANALYSIS OF BALANCE MUTUAL FUND

SCHEMES RETURNS IN RS

Name ofthe M.F

Schemes

W107-12-

09

W214-12-

09

W321-12-

09

W428-12-

09

W54-01-10

W611-01-

10

W718-01-

10

W825-01-

10

W91-02-10

W108-02-10

W1115-02-

10

W1222-02-

10

W1329-02-

10

HDFC

BMF

- 0.0293

2

-

0.0280

9

-

0.0758

2

0.0327

39

-

0.0125

9

-

0.0370

4

-

0.0392

1

-

0.0050

2

-

0.0166

1

-.0088 -

0.00884

0.01148

2

ING VY

BMF

- 0.0209

14

-0.0442 0.0445

57

0.0215

98

-

0.0121

6

-

0.0540

4

-

0.0401

6

-

0.0265

2

-0.0224 -0.06 -

0.00372

0.01305

2

LIC BMF - 0.0585

65

-

0.0475

5

0.0578

83

0.0413

43

-

0.0572

4

-

0.0552

8

-

0.0045

1

-

0.1121

2

-

0.0137

3

-0.456 -

0.03626

0.02508

5

TATA

BMF

-

-

0.0083

-

0.0393

8

0.0494

6

0.0417

49

-

0.0282

6

-

0.0500

2

-

0.0467

3

-

0.0232

7

-

0.0292

8

-0.639 -

0.01403

0.01560

8

UTI BMF -

-

0.0177

7

-

0.0123

2

0.0424

79

0.0250

47

-

0.0222

5

-

0.0402

8

-

0.0380

5

-

0.0210

5

-

0.0206

4

-0.09 -

0.003790.01692

Interpretation:

The tab le shows the comparat ive analys is are Balance Mutual Fund

Scheme based on Net Asset Value o f HDFC, ING VYSYA, LIC, TATA &

UTI Mutual Fund Companies. The s tudy carry on per iod 13 weeks & data

shows weekend NAV compar ison between d i f feren t Mutual Fund sample

Companies .

The tab le values ind icate decreas ing t rend in a l l Mutual Fund Schemes

of different sample Companies .

The table shows the returns of d ifferent Mutual Fund shows fluctuation

with iv performance except f ew weeks of UTI, TATA & LIC.


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A COMPARATIVE ANALYSIS OF INCOME MUTUAL FUND

SCHEMES

NAVS IN RS WEEKEND

Name of

the M.F

Schemes

W1

07-12-

09

W2

14-12-

09

W3

21-12-

09

W4

28-12-

09

W5

4-01-10

W6

11-01-

10

W7

18-01-

10

W8

25-01-

10

W9

1-02-10

W10

8-02-10

W11

15-02-

10

W12

22-02-

10

W13

29-02-

10

HDFC

IMF

10.581 10.581 10.610 10.435 10.516 10.602 10.622 10.706 10.676 10.716 10.693 10.615 10.660

ING VYIMF

10.481 10.491 10.514 10.379 10.475 10.648 10.694 10.813 10.694 10.737 10.726 10.676 10.701

LIC IMF 10.300 10.293 10.303 10.360 10.168 10.170 10.165 10.162 10.167 10.167 10.169 10.161 10.172

TATA

IMF

15.318 15.322 15.442 15.478 15.514 15.611 15.648 15.745 15.749 15.779 15.797 15.726 15.779

UTI IMF 23.146 23.178 23.204 23.281 23.418 23.533 23.564 23.667 23.625 23.692 23.657 23.514 23.586

-0.025

-0.02

-0.015

-0.01

-0.005

0

0.005

0.01

0.015

0.02

W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13

HDFC IMF

ING VY IMF

LIC IMF

TATA IMF

UTI IMF




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SCHEMES RETURNS

Name of

the M.F

Schemes

W1

07-12-

09

W2

14-12-

09

W3

21-12-

09

W4

28-12-

09

W5

4-01-10

W6

11-01-

10

W7

18-01-

10

W8

25-01-

10

W9

1-02-10

W10

8-02-10

W11

15-02-

10

W12

22-02-

10

W13

29-02-

10

HDFC

IMF

- 0.0027

41

-

0.0164

9

0.0077

62

0.0081

78

0.0018

86

0.0079

08

-0.0028 0.0037

47

-

0.0021

5

-

0.0072

9

0.00423

9

0.00274

1

ING VY

IMF

- 0.0021

92

-

0.0128

4

0.0092

49

0.0165

16

0.0043

2

0.0111

28

-

0.0110

1

0.0040

21

-

0.0010

2

-

0.0046

6

0.00234

2

0.00219

2

LIC IMF - 0.0009

72

0.0055

32

-

0.0185

3

0.0001

97

-

0.0004

9

-0.0003 0.0004

92

0 0.0001

97

-

0.0007

9

0.00108

3

0.00097

2

TATA

IMF

- 0.0078

32

0.0023

31

0.0023

26

0.0062

52

0.0023

7

0.0061

99

0.0002

54

0.0019

05

0.0011

41

-

0.0044

9 0.00337

0.00783

2

UTI IMF - 0.0011

22

0.0033

18

0.0058

85

0.0049

11

0.0013

17

0.0043

71

-

0.0017

7

0.0028

36

-

0.0014

8

-

0.0060

4

0.00306

2

0.00112

2

Interpretation:

The tab le shows the comparat ive analys is are Income Mutual Fund




Companies .

The tab le values ind icate increas ing t rend in a l l Mutual Fund Schemes

of different sample Companies .

T he t ab le s ho ws t he r e tu rn s o f d if fe r en t M ut ua l F un d s ho ws a + ve

growth during period s tudy except 9 t h , 10 t h week of the s tudy.


53/64

A COMPARATIVE ANALYSIS OF LIQUID MUTUAL FUND SCHEMES

NAVS IN RSWEEKEND

Name ofthe M.F

Schemes

W107-12-

09

W214-12-

09

W321-12-

09

W428-12-

09

W54-01-10

W611-01-

10

W718-01-

10

W825-01-

10

W91-02-10

W108-02-10

W1115-02-

10

W1222-02-

10

W1329-02-

10

HDFC

LMF

10.319 10.319 10.319 10.319 10.319 10.319 10.318 10.319 10.319 10.318 10.319 10.319 10.319

ING VY

LMF

10.833 10.833 10.833 10.834 10.832 10.833 10.833 10.834 10.834 10.833 10.833 10.833 10.833

LIC LMF 10.980 10.980 10.980 10.980 10.980 10.980 10.980 10.980 10.980 10.980 10.980 10.980 10.980

TATA

LMF

1116.8

14

1116.8

14

1116.8

14

1116.8

14

1116.8

14

1116.8

14

1116.8

14

1116.8

14

1116.8

14

1116.8

14

1116.81

4

1116.8

14

1116.81

4

UTI LMF 1031.8

88

1031.1

28

1031.3

98

1031.6

05

1031.7

12

1031.8

63

1032.1

12

1032.3

71

1032.6

19

1032.8

47

1033.02

6

1033.2

30

1033.51

2

-0.00025

-0.0002

-0.00015

-0.0001

-0.00005

0

0.00005

0.0001

0.00015

0.0002

0.00025

0.0003

W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13

HDFC LMF

ING VY LMF

LIC LMF

TATA LMF

UTI LMF

A COMPARATIVE ANALYSIS OF LIQUID MUTUAL FUND



54/64

A COMPARATIVE ANALYSIS OF LIQUID MUTUAL FUND

SCHEMES IN RS

Interpretation:

Th e t ab le s h o ws th e co mp ara t iv e an a lys i s a re L iq u id Mu tu a l Fu n d




Companies .

The table values indicate s layable trend in al l Mutual Fund Schemes of

d i f feren t sample Companies excep t UTI & some of weeks o f HDFC &

ING VYSYA..

Th e t ab le s h o ws th e r e tu rns o f d i f fe ren t Mu tu a l Fu n d s h o ws 0 & +v e

improvement in al l sample companies .

Name ofthe M.F

Schemes

W107-12-

09

W214-12-

09

W321-12-

09

W428-12-

09

W54-01-10 W611-01-

10

W718-01-

10

W825-01-

10

W91-02-08 W108-02-10 W1115-02-

10

W1222-02-

10

W1329-02-

10

HDFC

LMF

- 0 0 0 0 -9.7E-

05

9.69E-

05

0 -9.7E-

05

9.69E-

05

0 0 0

ING VY

LMF

- 0 9.23E-

05

-

0.0001

8

9.23E-

05

0 9.23E-

05

0 -9.2E-

05

0 0 0 0

LIC LMF - 0 0 0 0 0 0 0 0 0 0 0 0

TATA

LMF

- 0 0 0 0 0 0 0 0 0 0 0 0

UTI LMF -0.0002

62

0.0002

01

0.0001

04

0.0001

46

0.0002

41

0.0002

51

0.0002

4

0.0002

21

0.0001

73

0.0001

97

0.00027

3

0.00026

2


55/64

A COMPARATIVE ANALYSIS OF HDFC MUTUAL FUND SCHEMES

RETURNS IN RS

-0.1

-0.08

-0.06

-0.04

-0.02

0

0.02

0.04

W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13

HDFC BMF

HDFC IMF

HDFC LMF

A COMPARATIVE ANALYSIS OF HDFC MUTUAL FUND SCHEMES RETURNS IN

RS

Interpretation

Above table & graph shows performance of HDFC Mutual Fund returns of

different Schemes. Where HDFC Income fund shows +ve growth other than Balance &

Liquid Mutual Fund.

Name ofthe M.F

Schemes

W107-12-

09

W214-12-

09

W321-12-

09

W428-12-

09

W54-01-10

W611-01-

10

W718-01-

10

W825-01-

10

W91-02-10

W108-02-10

W1115-02-

10

W1222-02-

10

W1329-02-

10

HDFC

BMF

- 0.0293

2

-

0.0280

9

-

0.0758

2

0.0327

39

-

0.0125

9

-

0.0370

4

-

0.0392

1

-

0.0050

2

-

0.0166

1

0 -

0.00884

0.01148

2

HDFC

IMF

- 0.0027

41

-

0.0164

9

0.0077

62

0.0081

78

0.0018

86

0.0079

08

-0.0028 0.0037

47

-

0.0021

5

-

0.0072

9

0.00423

9

0.00274

1

HDFCLMF - 0 0 0 0 -9.7E-05 9.69E-05 0 -9.7E-05 9.69E-05 0 0 0


56/64

A COMPARATIVE ANALYSIS OF ING VY MUTUAL FUND SCHEMES

RETRUNS IN RS

Name of

the M.F

Schemes

W1

07-12-

09

W2

14-12-

09

W3

21-12-

09

W4

28-12-

09

W5

4-01-10

W6

11-01-

10

W7

18-01-

10

W8

25-01-

10

W9

1-02-10

W10

8-02-10

W11

15-02-

10

W12

22-02-

10

W13

29-02-

10

INGVY

BMF

- 0.0209

14

-0.0442 0.0445

57

0.0215

98

-

0.0121

6

-

0.0540

4

-

0.0401

6

-

0.0265

2

-0.0224 0 -

0.00372

0.01305

2

INGVY

IMF

- 0.0021

92

-

0.0128

4

0.0092

49

0.0165

16

0.0043

2

0.0111

28

-

0.0110

1

0.0040

21

-

0.0010

2

-

0.0046

6

0.00234

2

0.00219

2

INGVYLMF

- 0 9.23E-05

-

0.00018

9.23E-05

0 9.23E-05

0 -9.2E-05

0 0 0 0

-0.06

-0.04

-0.02

0

0.02

0.04

0.06

W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13

INGVY BMF

INGVY IMF

INGVY LMF

A COMPARATIVE ANALYSIS OF ING VY MUTUAL FUND SCHEMES RETRUNS IN

RS

Interpretation

Above table & graph shows performance of ING VYSYA Mutual Fund returns

of different Schemes. Where ING VYSYA Income fund shows consistency in

performance among other schemes.


57/64

A COMPARATIVE ANALYSIS OF LIC MUTUAL FUND SCHEMES

RETURNS IN RS

Name of

the M.F

Schemes

W1

07-12-

09

W2

14-12-

09

W3

21-12-

09

W4

28-12-

09

W5

4-01-10

W6

11-01-

10

W7

18-01-

10

W8

25-01-

10

W9

1-02-10

W10

8-02-10

W11

15-02-

10

W12

22-02-

10

W13

29-02-

10

LIC BMF - 0.0585

65

-

0.0475

5

0.0578

83

0.0413

43

-

0.0572

4

-

0.0552

8

-

0.0045

1

-

0.1121

2

-

0.0137

3

0 -

0.03626

0.02508

5

LIC IMF - 0.0009

72

0.0055

32

-

0.0185

3

0.0001

97

-

0.0004

9

-0.0003 0.0004

92

0 0.0001

97

-

0.0007

9

0.00108

3

0.00097

2

LIC LMF- 0 0 0 0 0 0 0 0 0 0 0 0

-0.14

-0.12

-0.1

-0.08

-0.06

-0.04

-0.02

0

0.02

0.04

0.06

0.08

W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13LIC BMF

LIC IMF

LIC LMF

A COMPARATIVE ANALYSIS OF LIC MUTUAL FUND SCHEMES RETURNS IN RS

Interpretation

Above table & graph shows performance of LIC Mutual Fund returns of different

Schemes. Where LIC Income fund shows +ve returns during period of study except one or 2

weeks & in Liquid fund shows 0 returns where as Balance shows ve.


58/64

A COMPARATIVE ANALYSIS OF TATA MUTUAL FUND SCHEMES

RETRUNS IN RS

Name of

the M.F

Schemes

W1

07-12-

09

W2

14-12-

09

W3

21-12-

09

W4

28-12-

09

W5

4-01-10

W6

11-01-

10

W7

18-01-

10

W8

25-01-

10

W9

1-02-10

W10

8-02-10

W11

15-02-

10

W12

22-02-

10

W13

29-02-

10

TATA

BMF

-

-

0.0083

-

0.0393

8

0.0494

6

0.0417

49

-

0.0282

6

-

0.0500

2

-

0.0467

3

-

0.0232

7

-

0.0292

8

0 -

0.01403

0.0156

8

TATA

IMF

- 0.0078

32

0.0023

31

0.0023

26

0.0062

52

0.0023

7

0.0061

99

0.0002

54

0.0019

05

0.0011

41

-

0.0044

9 0.00337

0.00783

2

TATA

LMF

- 0 0 0 0 0 0 0 0 0 0 0 0

-0.06

-0.04

-0.02

0

0.02

0.04

0.06

W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13

TATA BMF

TATA IMF

TATA LMF

A COMPARATIVE ANALYSIS OF TATA MUTUAL FUND SCHEMES RETURNS

IN RS

Interpretation

Above table & graph shows performance of TATA Mutual Fund returns of different

Schemes. Where TATA Income fund shows +ve returns other Balance & Liquid fund shows

0 & -ve returns.


59/64

A COMPARATIVE ANALYSIS OF UTI MUTUAL FUND SCHEMES

RETRUNS IN RS

Name of

the M.FSchemes

W1

07-12-09

W2

14-12-09

W3

21-12-09

W4

28-12-09

W5

4-01-10

W6

11-01-10

W7

18-01-10

W8

25-01-10

W9

1-02-10

W10

8-02-10

W11

15-02-10

W12

22-02-10

W13

29-02-10

UTI BMF -

-

0.0177

7

-

0.0123

2

0.0424

79

0.0250

47

-

0.0222

5

-

0.0402

8

-

0.0380

5

-

0.0210

5

-

0.0206

4

0 -

0.003790.01692

UTI IMF - 0.0011

22

0.0033

18

0.0058

85

0.0049

11

0.0013

17

0.0043

71

-

0.0017

7

0.0028

36

-

0.0014

8

-

0.0060

4

0.00306

2

0.00112

2

UTI LMF- 0.0002

62

0.0002

01

0.0001

04

0.0001

46

0.0002

41

0.0002

51

0.0002

4

0.0002

21

0.0001

73

0.0001

97

0.00027

3

0.00026

2

-0.05

-0.04

-0.03

-0.02

-0.01

0

0.01

0.02

0.03

0.04

0.05

W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13

UTI BMF

UTI IMF

UTI LMF

A COMPARATIVE ANALYSIS OF UTI MUTUAL FUND SCHEMES

RETURNS IN RS

Interpretation

Above table & graph shows performance of UTI Mutual Fund returns of different

Schemes. Where UTI Income fund & liquid fund shows +ve returns & Balance fund shows

ve returns.


60/64


61/64

FINDINGS

The following Findings are made based on Analysis & Interpretation of different

Mutual Fund Companies (HDC, ING VYSYA, LIC, TATA & UTI). During period of studyfrom 07-12-2009 to 29-02-2010.

Comparative analysis of Balance Mutual Fund shows sample companies from last 13

weeks of returns shows ve performance of all Mutual Fund Returns.

Income Mutual Fund schemes of different sample companies shows high fluctuations

& -ve returns during period of study.

The Liquid Mutual Fund Schemes of different sample companies shows 0 & -ve

returns.

Comparative analysis of HDFC different Mutual Fund Schemes shows ve

performance between Balance, Income & Liquid Mutual Funds.

Comparative analysis of ING VYSYA Income Mutual Fund Scheme shows +ve

returns & Balance & Liquid Mutual Fund Schemes shows 0 & -ve returns.

Comparative analysis of LIC different Mutual Fund Schemes shows ve performance

of returns.

Comparative analysis of TATA Income Mutual Fund Scheme shows ve performance

or returns & Balance & Liquid Mutual Fund Schemes shows ve & 0 performance.

Comparative analysis of UTI different Mutual Fund Scheme shows +ve returns in

Liquid & Income Mutual Fund Schemes & Balance Mutual Fund Scheme shows ve returns.


62/64

SUGGESTIONS

The following suggestion are offer to the Organization & Investors based on analysis

& interpretation of difference Mutual Fund sample companies & Mutual Fund Schemes.

Investors can choose LIC Income Mutual Fund for +ve returns.

Investors can invest TATA Income Mutual Fund & UTI Income Mutual Fund.

Liquid Mutual Fund of difference sample companies shows ve & 0 returns in highly

volatility market except UTI Liquid Mutual Fund. UTI Liquid Mutual Fund Scheme shows

efficiency Management of Mutual Fund Securities.

The above sample companies portfolio service were shows enable forecast market

volatility except UTI, LIC & TATA Mutual Fund. Investors can choose any of these

companies to get higher expected returns from their investment & minimize the market or

systematic risk.


63/64

CONCLUSION

It is to be concluded that the performance of mutual funds will depends on effectiveness

and efficiency of the concerned fund manager that the way he allocate the

funds and diversify. The investors should understand the market

movements and invest accordingly. It is concluded that few funds have

given good returns to the investors and few have given low returns.

Finally it is concluded that mutual funds investments are subject to market risk, the

investors are advised to check the issue prospectus before their investments in any area.


64/64

BIBLIOGRAPHY

BOOKS

Investment management Avdhani

Financial services M.Y.Khan

WEBSITES

www.google.com

www.Amfiindia.com

www.bseindia.com

www.nseindia.com

www.zensec.com

www.njindiainvest.com

www.hdfcfund.com

www.ingvysyamf.com

www.licmutual.com

www.tatamutualfund.com

www.utimf.com

NEWSPAPERS & MAGAZINES

BUSINESSSTANDARD

BUSINESS LINE
http://www.google.com/http://www.amfiindia.com/http://www.bseindia.com/http://www.nseindia.com/http://www.zensec.com/http://www.njindiainvest.com/http://www.hdfcfund.com/http://www.ingvysyamf.com/http://www.licmutual.com/http://www.tatamutualfund.com/http://www.utimf.com/http://www.google.com/http://www.amfiindia.com/http://www.bseindia.com/http://www.nseindia.com/http://www.zensec.com/http://www.njindiainvest.com/http://www.hdfcfund.com/http://www.ingvysyamf.com/http://www.licmutual.com/http://www.tatamutualfund.com/http://www.utimf.com/

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