PRESENTATION ON SUMMER INTERNSHIP PROJECT REPORT

Topic: - “Study of selected Mutual Fund schemes Rating in relation with AUM (Asset under Management)”Submitted ByParshav Doshi Enrollment No: - 148320592080 Dhaval Patel Enrollment No: - 148320592031Submitted toOAKBROOK BUSINESS SCHOOLUnder the Guidance ofFaculty Mentor Pro Jignesh DarjiCorporate Mentor Mr. Siddharth Shah

OAKBROOK BUSINESS SCHOOLMBA PROGRAMMEAffiliated to Gujarat Technological University, Ahmedabad

PRESENTATION OUTFLOW

Structure of Mutual Fund Types of Mutual Funds Industry Overview Company overview Literature Review Introduction of Topic Research Methodology Data Analysis Findings Conclusions

STRUCTURE OF MUTUAL FUNDS

TYPES OF MUTUAL FUNDS

Liquid Funds Short term debt funds Gilt funds Debt funds Balanced funds Index funds Diversified Equity funds Sectorial funds

INDUSTRY OVERVIEW

Mutual fund is the pool of the money, based on the trust who invests the savings of a number of investors who shares a common financial goal, like the capital appreciation and dividend earning. The money thus collect is then invested in capital market instruments such as shares, debenture, and foreign market. Investors invest money and get the units as per the unit value which we called as NAV (net assets value). Mutual fund is the most suitable investment for the common man as it offers an opportunity to invest in diversified portfolio management, good research team, professionally managed Indian stock as well as the foreign market, the main aim of the fund manager is to taking the scrip that have under value and future will rising, then fund manager sell out the stock. Fund manager concentration on risk – return trade off, where minimize the risk and maximize the return through diversification of the portfolio. The most common features of the mutual fund unit are low cost. The below I mention the how the transactions will done or working with mutual fund.

CHALLENGES FOR MUTUAL FUND INDUSTRY

Lack of Financial Education and Awareness

Limited Distribution Network Distribution cost Cultural Bias

Introduction Company started in1982 and now backed by 33 Years of experience and competence of providing Investment Services. Now it is one of the leading Individual Financial Distributor with the help of investors’ continuous support and “Six Sigma of Investing”. Vision “Our Vision is to become market leader in retail segment and create an environment of open interaction with smallest of the investors. We visualize creating a dream within them, educating & introducing a long term financial freedom with discipline investment approach.” Mission“Our mission is to be in heart of the investors as genuine, understanding and skilled investment services provider by adopting best ethical business practices to see investors reaching their financial goals and achieve financial freedom.”

INTRODUCTION

LITERATURE REVIEW

Article 1: - RATING EVALUATION OF SELECT EQUITYFUNDS IN INDIAThere are around 58 Asset Management Companies (AMC) offering mutual funds in India. AllThese fund houses have several mutual fund schemes in each segment like equity, debt, gilt andLiquid funds. Out of which equity segment is flourished and most of the investors are attractedTowards equity mutual fund schemes. Because of availability of wide range of equity MFSchemes in each AMC, it would be difficult for the investor to choose the best scheme.It is appropriate to consider risk and return of each fund to yield better returns before takingInvestment decision. Hence Present study is an attempt of identifying risk and returns of equityFunds and comparing the same with bench mark returns and peers to help mutual fund investorsin choosing better funds as investment avenues Article 2:- A COMPARATIVE ANALYSIS OF RETURNS OF MUTUALFUND SCHEMES RANKED 1 BY CRISILMutual fund industry has experienced a drastic growth in the past two decades. Increase in the number of schemes with increased mobilization of funds in the past few years notes the importance of Indian mutual funds industry. To fulfill the expectations of millions of retail investors, the mutual funds are required to function as successful institutional investors. Proper assessment of various fund performance and their comparison with other funds helps retail investors for making investment decisions. The main aim of this paper is to evaluate the performance of mutual fundSchemes ranked 1 by CRISIL and compare these returns with SBI domestic term deposit rates. Considering the interest of retail investors simple statistical techniques like averages and rate of returns are used.The results obtained from the study clearly depicts that, in most of the cases the mutual fund schemes have failed even to provide the return of SBI domestic term deposits.

INTRODUCTION OF THE TOPIC The target is to identify the Rating of various schemes in comparison

of different parameters.

1. Research period – 2003-20152. Source of data3. Scheme Covered4. Performance During the period we have targeted to collect the data from authentic

source so that the outcome of data is reliable and can be compared with any other pear group data base.

For the collection of data we have covered 76 different Mutual Fund Insight book to extract the data.

We have collected data of1. Rank2. AUM3. Return4. Rating

RESEARCH METHODOLOGY

Research ObjectiveThe primary objective of doing this research is to “Identify the Rating of different Scheme in comparison of Assets of the Fund”

RESEARCH METHODOLOGY

Research DesignResearch Design is the roadmap for carrying out the research activity in the project. In our project of “Study of Selected Mutual fund scheme Rating in Related With AUM” we have carried out the research of which mutual fund is providing higher return by comparing the returns of different mutual funds and we have also compared whether the mutual fund can beat the market return or not.

For this research activity   We have selected 10 mutual funds from Indian market. All funds

are in equity diversified category.   Data has been collected from Mutual Fund Insight book, value

research online, and mutual fund India web sites. Funds selected are mostly preferable by investors. Collected Rating and Assets of funds of each July Month for the

year 2003 to 2015.

Source of DataHere in this research project we have used Secondary source of data. Data Collection MethodHere in this research project we have used data which were published in the Value Research Book in this book we collect data of Rating and Assets.

LIMITATIONS

The biggest limitation of this research is, it is not valid for all the scheme of mutual funds. It is valid only for the selected fund on which we have conducted research.

As we have collected Secondary data from the monthly Magazine Mutual Insight, in this there were many data missing due to that we have to opt for the scheme website.

As we have taken 10 scheme so our research valid only for that 10 scheme. No investor can take decision for remaining scheme of mutual funds.

DATA ANALYSIS & DATA INTERPRETATION

BIRLA SUN LIFE EQUITY FUND

Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15

(Rs.Cr) 370.72 808.67 1021.18 950.9 1142 951 750 713 653 2020

Rating NaN NaN NaN 4 3 2 2 1 4 3

250

750

1250

1750

2250

0.25

0.75

1.25

1.75

2.25

2.75

3.25

3.75

4.25

370.72

808.67

1021.18950.9

1142

951

750 713653

2020

4

3

2 2

1

4

3

Birla Sun Life Equity Fund Rating V/S AUM

BIRLA SUN LIFE FORTLINE EQUITY

Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15

AuM 81.96 283.92 397.76 624.2 2164 2742 2901 3044 3921 8733

Rating 4 5 4 5 4 4 4 4 4 4

500

1500

2500

3500

4500

5500

6500

7500

8500

9500

0.5

1.5

2.5

3.5

4.5

5.5

81.96 283.92 397.76624.2

2164

2742 2901 3044

3921

8733

4

5

4

5

4 4 4 4 4 4

Birla Sun Life Fortline Equity Rating V/S AUM

AuM Rating

FRANKLIN INDIA BLUECHIP

Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15

(Rs.Cr)

663.95 1707.80 1609.67 2104.03 2615.88 2021.18 1942.50 2916.00 3397.00 4516.00 5150.00 4788.00 6138.00

Rating

4 5 4 NaN NaN NaN 3 4 4 4 5 4 4

500.00

1500.00

2500.00

3500.00

4500.00

5500.00

6500.00

0.5

1.5

2.5

3.5

4.5

5.5

663.95

1707.80 1609.67

2104.03

2615.88

2021.18 1942.50

2916.00

3397.00

4516.00

5150.004788.00

6138.00

4

5

4

3

4 4 4

5

4 4

Franklin India Bluechip Rating V/S AUM

(Rs.Cr) Rating

FRANKLIN INDIA PRIMA PLUS

Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15

(Rs.Cr)

212.94 633.78 471.17 620.12 1365.78 1378.53 1351.70 1730.10 1704.00 1829.00 1953.00 2014.00 4023.00

Rat-ing

NaN 4 4 NaN NaN NaN 4 3 4 4 4 4 5

250.00

750.00

1250.00

1750.00

2250.00

2750.00

3250.00

3750.00

4250.00

0.5

1.5

2.5

3.5

4.5

5.5

212.94

633.78471.17

620.12

1365.78 1378.53 1351.70

1730.10 1704.001829.00

1953.00 2014.00

4023.00

4 4 4

3

4 4 4 4

5

Franklin India Prima Plus Rating V/S AUM

(Rs.Cr) Rating

HDFC EQUITY FUND

Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15

(Rs.Cr) 407.16 988.98 1148.51 2914.56 4620.96 3597.09 3308.3 6172 8405 9916 11501 10445 17808

Rating 5 5 4 5 5 4 4 5 5 5 4 4 2

1000.00

3000.00

5000.00

7000.00

9000.00

11000.00

13000.00

15000.00

17000.00

19000.00

0.5

1.5

2.5

3.5

4.5

5.5

407.16988.98 1148.51

2914.56

4620.963597.09 3308.3

6172

8405

9916

1150110445

17808

5 5

4

5 5

4 4

5 5 5

4 4

2

HDFC Equity Rating V/S AUM

(Rs.Cr) Rating

HDFC TOP 200

Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15

(Rs.Cr)

136.14 612.08 595.59 1134.00 2048.81 2264.00 2872.70 7221.00 9591.00 11381.00

12017.00

10320.00

13247.00

Rat-ing

4 4 5 NaN NaN NaN 4 5 5 4 4 4 3

1000.00

3000.00

5000.00

7000.00

9000.00

11000.00

13000.00

0.5

1.5

2.5

3.5

4.5

5.5

136.14612.08 595.59

1134.00

2048.81 2264.002872.70

7221.00

9591.00

11381.0012017.00

10320.00

13247.00

4 4

5

4

5 5

4 4 4

3

HDFC Top 200 Rating V/S AUM

(Rs.Cr) Rating

ICICI PRU DYNAMIC FUND

Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15

AuM 1008.2 2415.83 1509.97 1319.4 2160 2986 4119 3885 3670 5726

Rating NaN NaN NaN 3 4 4 4 4 5 3

500

1500

2500

3500

4500

5500

6500

0.5

1.5

2.5

3.5

4.5

5.5

1008.2

2415.83

1509.971319.4

2160

2986

41193885

3670

5726

3

4 4 4 4

5

3

ICICI Pru Dynamic Fund Rating V/S AUM

AuM Rating

ICICI PRU DISCOVERY FUND

Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15

(Rs.Cr) 386..69 991.97 738.82 300.74 261 1084 1612 1779 2597 3040 9115

Rating 0 NaN NaN NaN 2 5 4 5 4 5 4

500

1500

2500

3500

4500

5500

6500

7500

8500

9500

0.5

1.5

2.5

3.5

4.5

5.5

991.97738.82

300.74 261

10841612 1779

25973040

9115

2

5

4

5

4

5

4

ICICI Pru Discovery Fund Rating V/S AUM

(Rs.Cr) 386..69 Rating 0

RELIANCE EQUITY OPPORTUNITIES

Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13

(Rs.Cr) NaN NaN 1616.64 1777.22 2616.63 1586.43 1347.1 2034 2801 3340 4995

Rating NaN NaN 0 NaN NaN NaN 2 4 4 4 5

500

1500

2500

3500

4500

5500

0.5

1.5

2.5

3.5

4.5

5.5

1616.641777.22

2616.63

1586.431347.1

2034

2801

3340

4995

0

2

4 4 4

5

Reliance Equity Opportunities Rating V/S AUM

(Rs.Cr) Rating

RELIANCE GROWTH FUND

Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15

(Rs.Cr)

38.71 460.62 1322.03

1962.87

4082.03

4792.09

4376.00

7272.00

7060.00

5844.00

5206.00

4106.00

5405.00

Rating

5 5 5 NaN NaN NaN 4 4 4 3 2 3 3

500.00

1500.00

2500.00

3500.00

4500.00

5500.00

6500.00

7500.00

0.5

1.5

2.5

3.5

4.5

5.5

38.71460.62

1322.03

1962.87

4082.03

4792.094376.00

7272.007060.00

5844.00

5206.00

4106.00

5405.00

5 5 5

4 4 4

3

2

3 3

Reliance Growth Rating V/S AUM

(Rs.Cr) Rating

CONCLUSION

Looking at the research we have done above we can conclude that Assets of the scheme depends on the 3 factors

1. Market up/down2. Rating of the scheme The assets of the scheme some time depends on the market ups and

downs. Its all because if the market is good then the performance of the scheme will increase due to which there were will more investment by the investor and vice versa.

If the fund manager of the scheme invests the fund wisely in different equity then the performance of the scheme will improve due to that the investment increase and assets of the scheme will increase.

With the help of rating many of the investor are attracted due to good rating due to which they invest looking at the rating and ignore too look at the performance of the scheme due to which there will be increase in the assets of the fund.