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PRESENTATION ON SIX – WEEKS INDUSTRIAL TRAINING AT STANDARD CHARTERED
Presented By
Pallavi Saggar
(MBA-2A)
CHAPTER-I (INTRODUCTION)
Company Introduction
Founded --1853 Headquarters -- London Key people -- John Peace (Chairman) Industry -- Banking Products – Financial Services Operating Profit -- $15184 m (2009) Profit before taxation -- $5151 m (2009) Employees -- 77326 (2009) Website -- www.standardchartered
.com
WHAT STANDARD CHARTERED STAND FOR?? Strategic Intent Brand Promise Value Approach
- Participation
- Competitive Positioning
- Customers
- People
- Communities
STANDARD CHARTERED BANKING SERVICES
Personal Banking
Consumer Banking
Wholesale Banking
SME Banking
Private Banking
Asia
Jaspal Bindra
Asia
Jaspal Bindra
Risk Mgt
Rudy Markham
Risk Mgt
Rudy Markham
Wholesale Banking Mike Rees
Wholesale Banking Mike Rees
C FO
Richard Medding
C FO
Richard Medding
PeoplProperty,Assurance
Tim Miller
PeoplProperty,Assurance
Tim Miller
Secretary
Anniemarie Durbin)
Secretary
Anniemarie Durbin)
Consumer Banking
Steve Bebertamini
Consumer Banking
Steve Bebertamini
H R
Tracy Clark
H R
Tracy Clark
Chairman of Board( John Peace )
Chairman of Board( John Peace )
ORGANISATION CHART OF STANDARD CHARTERED
ORGANISATION CHART IN CASE OF BRANCH
SWOT ANALYSIS1. Strengths: Good and diverse product One of the profitable MNC in India. Maintain a position as a leading cash management provider.
2. Weakness: Weak Human Resource Management. Have few locations.
CONTD…
3. Opportunities: Scope of opening more Branches Increasing Banking need. System is so transparent
4. Threat: Competition from major players like HSBC,
CITIBANK.
BANKING RATIOS Return on Equity = Net Income
Shareholder’s equity
Table 1.1
Ratio March,
2010
March,
2009
March,
2008
March,
2007
Return on
equity (%)
18.33 18.55 20.35 23.51
CONTD… Return on Assets = Net Operating Income
Total Assets
Table 1.2
Ratio March,
2010
March,
2009
March,
2008
March,
2007
Return on
Assets (%)
4.8 3.8 4.1 3.96
CONTD… Shareholder’s equity to assets =
Shareholder’s equity
Total Assets
Table1.3Ratio March,
2010
March,
2009
March,
2008
March,
2007
Shareholder’s
equity to assets
(%)
12.9 10.5 11.39 9.85
CONTD… Borrowings to total Liability & Equity =
Borrowings
Total Liability +Equity
Table 1.4
Ratio March,
2010
March,
2009
March,
2008
March,
2007
Borrowings
to total
Liability&
Equity (%)
9.73 10.78 9.46 6.79
CONTD… Loans to Assets = Loans
Total assets
Table 1.5
Ratio March,
2010
March,
2009
March,
2008
March,
2007
Loans to
Assets (%)
46.39 38.48 45.41 51.11
TREND ANALYSIS EPS (Earning Per Share) =
Profit after interest and tax
No. of equity shares
Figure 1.6
March,2010 March,2009 March,2008 March,20070
20
40
60
80
100
120
140124
112
100 100
Trend in EPS(%)
Trend in EPS(%)
CONTD… Trend of Net Profit:
Figure 1.7
March,2010 March,2009 March,2008 March,20070
20
40
60
80
100
120
140
160
180
155
139
125
100
Trend in Net Profit(%)
Trend in Net Profit(%)
CONTD… Trend in Interest Earned
Figure 1.8
March,2010 March,2009 March,2008 March,20070
20
40
60
80
100
120
140
160140 139
120
100
Trend in Interest Earned(%)
Trend in Interest Earned(%)
CONTD… Trend in Interest Expended
Figure 1.9
March,2010 March,2009 March,2008 March,20070
20
40
60
80
100
120
140
160
130139
125
100
Trend in Interest Expended (%)
Trend in Interest Expended (%)
INTRODUCTION TO MUTUAL FUNDS
Mutual Fund is a mechanism for pooling the resources by issuing units to the public & investing funds in accordance with objectives as disclosed in the offer document.
TYPES OF MUTUAL FUNDS
1.Fund according to Maturity Period:
Open-ended
Close-ended
CONTD…2.Schemes according to Investment Objective
Growth / Equity Oriented Scheme
Income / Debt Oriented Scheme
Balanced Fund
Money Market or Liquid Fund
CURRENT POSITION OF MUTUAL FUND INDUSTRY The mutual funds industry posted a decline of 2.3 percent
during the fiscal year ended on June 30,2010 .
After touching the highest level of the year at Rs 236 billion in
September 2009, the industry started declining from this level
and managed to close the year at Rs199 billion, thus,
demonstrating 15.8 percent decline . The money market funds category showed growth of 876.5
percent over the year.
Source: www.amfi.com
CONTD… Open-ended fund size decreased by 4.0
percent to reach Rs168 billion, while the closed-end funds showed an increase of 0.7 percent to reach Rs31 billion.
During June, the size of the Growth funds category stood at Rs39.2 billion, showing a surge of 2.8 percent on M-o-M basis.
Source: www.amfi.com
GROWTH IN ASSETS UNDER MANAGEMENT
Source: www.amfi.com
ASSETS UNDER MANAGEMENT AS ON JUNE30, 2010
(AMOUNT IN CR.)
ASSETS UNDER MANAGEMENT AS ON JUNE 30,2010
Source: www.amfi.com
NatureStructure
Open End Close End Total
Balanced 16540 1356 17896
ELSS 21739 3129 24868
FOF Investing Overseas 2638 - 2638
Gilt 3229 - 3229
GOLD ETF 1939 - 1939
Growth 161850 16350 178200
Income 274647 36868 311515
Liquid/Money Market 71871 - 71871
Other ETF 1135 - 1135
Total 555588 57703 613291
Amount in Rs. Crores
FUTURE OF MUTUAL FUND INDUSTRY
The annual composite rate of growth is expected 13.4% during the rest of the decade.
According to the current growth rate, by year 2010, mutual fund assets will be double.
Source: www.amfi.com
CHAPTER –III RESEARCH METHODOLOGY Title of Study
“Comparative Analysis of Growth
Funds of Selected Companies”
CONTD… Objective of study
To calculate Growth Funds of Selected Companies by calculating these ratios like Standard Deviation, Sharpe, Beta, Treynor, Jenson and Alpha.
To compare these selected Growth Funds on the basis of above mentioned ratios.
To study Investor’s perception about Mutual Funds.
CONTD…Research Methodology for 1st two Objective1. Research Design: – For this study design followed
is Descriptive Research Design
2. Sampling Design:
Steps in Sample Design
a) Universe – For the present study universe is all Asset Management Companies (AMCS) which are operating.
.
CONTD…b) Population – For the study population is all Asset
Management Companies operating with the Growth Funds.
c) Sample Unit – For the study sample unit is one single Asset Management Company.
d) Sample Size – For the study sample size is 10 Asset Management Companies operating with the Growth Fund.
e) Sampling Techniques – For this study sampling technique followed is convenience sampling .
CONTD…Research Methodology for 3rd objective
1. Research Design – For this study design followed is Descriptive Research Design
2. Sampling Design
Steps in Sample Design
a) Universe - For the present study universe is almost all the population of the world as they invest something however small it may be, in some avenue.
CONTD…b)Population – For the study population is Ludhiana
city. The city covered under research is Ludhiana
c)Sample Unit – For the study sample unit is one single investor of the sample.
d) Sample Size – For the study sample size is 100 respondents
e) Sampling Techniques – For the study sampling technique followed convenience sampling .
DATA COLLECTION
Collection of Primary Data
The primary data have been collected from100 respondents taken on sample basis through structured Questionnaire
Collection of Secondary Data
The yield on bank deposit during the period under study i.e. 7%. has been taken as a measure of risk free rate. The period under study is 1 year.
TOOLS OF ANALYSIS
Percentage— the percentage has been calculated while measuring consumer perception towards mutual funds in India.
Charts and Diagram are prepared wherever necessary.
Tools for measuring risk and volatility are taken as Standard Deviation, Sharpe, Jenson , Beta, Alpha, Treynor.
LIMITATIONS OF STUDY
Sample size was limited to 100 only. The study is limited to investors of Ludhiana
only. Few respondents were not able to understand
some of the terms of questionnaire. Some of persons were not so responsive. Possibility of error in data collection .
Table 4.1Funds PerformanceRank Growth Funds Holding Period Returns (%)
(For 1 Yr.)
1. DSP BR Growth Fund 93.3
2. UTI Growth Fund 60.10
3. ING Growth Fund 55.14
4. IDFC Growth Fund 54.8
5. Religare Growth Fund 50.93
6. HDFC Growth Fund 36.21
7. Birla Growth Fund 35.28
8. Reliance Growth Fund 35.03
9. ICICI Growth Fund 23.92
10. HSBC Growth Fund 16.94
CHAPTER – IV DATA ANALYSIS ANALYSIS OF SECONDARY DATA
Table 4.2 Sharpe MeasureRank Fund Name Results
1. DSP BR Growth Fund 12.2
2. ING Growth Fund 9.11
3. IDFC Growth Fund 8.17
4. Religare Growth Fund 8.12
5. UTI Growth Fund 7.26
6. Birla Growth Fund 6.98
7. HDFC Growth Fund 5.28
8. Reliance Growth Fund 4.60
9. ICICI Growth Fund 1.98
10. HSBC Growth Fund 1.27
Table 4.3 Beta
Rank Fund Name Results
1. IDFC Growth Fund 2.48
2. Religare Growth Fund 2.88
3. ING Growth Fund 3.05
4. DSP BR Growth Fund 3.31
5. Birla Growth Fund 3.33
6. HDFC Growth Fund 3.72
7. Reliance Growth Fund 3.87
8. HSBC Growth Fund 3.93
9. UTI Growth Fund 4.36
10. ICICI Growth Fund 4.70
Table 4.4 Treynor MeasureRank Fund Name Results
1. DSP BR Growth Fund 20.92
2. IDFC Growth Fund 15.49
3. ING Growth Fund 15.09
4. Religare Growth Fund 14.80
5. Birla Growth Fund 12.13
6. UTI Growth Fund 11.82
7. Reliance Growth Fund 7.88
8. HDFC Growth Fund 6.66
9. ICICI Growth Fund 2.52
10. HSBC Growth Fund 1.51
Table 4.5 Standard DeviationRank Fund Name Results
1. HDFC Growth Fund 4.69
2. IDFC Growth Fund 4.71
3. ING Growth Fund 5.05
4. Religare Growth Fund 5.266
5. HSBC Growth Fund 5.269
6. DSP BR Growth Fund 5.656
7. Birla Growth Fund 5.789
8. ICICI Growth Fund 5.98
9. Reliance Growth Fund 6.64
10. UTI Growth Fund 7.09
Table 4.6 Jenson MeasureSr. Fund Name Results
1. IDFC Growth Fund -5.65
2. Religare Growth Fund -7.69
3. ING Growth Fund -8.53
4. DSP Growth Fund -9.86
5. Birla Growth Fund -9.93
6. HDFC Growth Fund -11.92
7. Reliance Growth Fund -12.72
8. HSBC Growth Fund -12.99
9. UTI Growth Fund -15.17
10. ICICI Growth Fund -16.91
Table 4.7 Alpha (α)Rank Fund Name Results
1. DSP BR Growth Fund 86.22
2. UTI Growth Fund 73.72
3. ING Growth Fund 61.63
4. Religare Growth Fund 57.45
5. Birla Growth Fund 57.34
6. IDFC Growth Fund 51.19
7. Reliance Growth Fund 50.31
8. HDFC Growth Fund 43.75
9. ICICI Growth Fund 35.78
10. HSBC Growth Fund 25.93
ANALYSIS OF PRIMARY DATA Figure 4.8 Class wise Distribution of Respondents
(N=100)
Business class Service class Professionals others0
10
20
30
40
50
60
14
50
14
22
No. of Respondents (%)
No. of Respondents (%)
Bank Deposits Mutual Funds LIC Equity Shares NSCRank 1 2 3 4 5
0
50
100
150
200
250
300
350
400
187
245
310
345 352
Figure 4.9 Preference of Investor towards various Financial Assets (N=100)
.
business(%) servicemen(%) professional (%) others(%)0
10
20
30
40
50
60
70
80
90
43
33
57
77
7
4036
5
29
15
75
21
12
0
13
less than 1 yearbetween 1-3 yearsbetween 3-5 yearsabove 5 years
FIGURE 4.10 EXPERIENCE OF INVESTOR’S IN MUTUAL FUND (N=100)
FIGURE 4.11 PREFERENCE OF INVESTOR REGARDING OPEN & CLOSE ENDED MUTUAL FUND(N=100)
business(%) servicemen(%) professional (%) others(%)0
10
20
30
40
50
60
70
80
90
79
68
57
77
21
32
43
23
open -endedclose-ended
regular income growth liquidity speculation tax-saving0
10
20
30
40
50
60
70
7
36
0
14
43
20
50
0 0
30
14
58
14
0
14
45
23
18
14
0
business(%)servicemen(%)professional (%)others(%)
FIGURE 4.12 OBJECTIVE OF INVESTMENT IN MUTUAL FUND (N=100)
.
business(%) servicemen(%) professional (%) others(%)0
10
20
30
40
50
60
70
80
90
43
50
29
77
29
42
71
1414
40 0
14
40
9
Absolute returns of fundsFund return vis-vis market index systemFund return vis-vis return on similar schemeRisk adjusted return of the schemes
FIGURE 4.13 CRITERIA FOR PERFORMANCE EVALUATION (N=100)
business(%) servicemen(%) professional (%) others(%)0
10
20
30
40
50
60
70
29
23
7
32
21
13
29
23
50
64 64
45
procedural complexitiesservice dissatisfactionawareness lacking
FIGURE 4.14 MAJOR CAUSES OF DEFICIENCES IN WORKING OF MUTUAL FUND (N=100)
.
business(%) servicemen(%) professional (%) others(%)0
10
20
30
40
50
60
70
80
90
100
21
43
7
18
79
57
93
82
yesno
FIGURE 4.15(A) INVESTOR’S VIEW REGARDING USAGE OF TECHNICAL TOOLS (N=100)
Business(%) Service(%) Professional(%) Others(%)0
5
10
15
20
25
0
10
0 00
8
0 0
21
12
7
14
0
12
0
4
Treynor measureSharpe measureBetaAlpha
FIGURE 4.15(B) CHOICE OF INVESTOR REGARDING USAGE OF TECHNICAL TOOLS (N=100)
CHAPTER- V FINDING & SUGGESTIONS
In case of Secondary Study DSP BR Growth Fund is being Ranked no. 1
in case of Treynor measure, Sharpe Measure, Alpha and has maximum holding period return of 93.3%
HSBC Growth Fund has underperformed as comparison to other Funds as it is ranked to be last among 10 AMCS in terms of Treynor measure, Sharpe measure, Alpha and has minimum holding period return of 16.94%.
CONTD…In case of Primary Study
Investors commits following mistake while investing in stock market:
Over enthusiastic for making quick money Ignoring the strategy of diversification Not spending enough time in analyzing industries
growth potential Always insisting for short term investment No attempt for well thought – out investment plan
SUGGESTIONS Try to save as much as . Plan the investment over a longer period of
time Do not invest in highly volatile funds Do collect and analyze enough information
about the funds one’s plan to invest in Diversification of investment is must Periodically keep reviewing objectives of
investment Maintain proper record of the transaction
THANK YOU
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