A Study on Different Schemes With Comparison &

8/7/2019 A Study on Different Schemes With Comparison &

http://slidepdf.com/reader/full/a-study-on-different-schemes-with-comparison- 1/17

PRESENTED BY:

HARSH JAINPGDM, FINANCE

ROLL- 5130



�

Mutual fund is a trust that pools the savings of anumber of investors who share a common financial

goal.

� Mutual fund is the most suitable investment for the

common man as it offers an opportunity to invest in adiversified, professionally managed basket of

securities at a relatively low cost.

� A mutual fund is a body corporate registered with the

SEBI that pools up the money fromindividual/corporate investors and invest the same on

behalf of the unit holders, in equity shares, government

securities, bonds, call money market etc. and distribute

the profits.



� To show the wide range of investment options availablein mutual funds by explaining its various schemes.

� To compare the schemes based on Sharpe¶s ratio,

Treynor¶s ratio, b Coefficient, Returns and show which

scheme is best for the investor based on his risk profile.

� To help an investor make a right choice of investment,

while considering the inherent risk factors.

� To understand the performance of different schemes

in different companies like LIC, SBI, RELIANCE

AND KOTAK.



� The study is basically made to analyze the various openended equity schemes of different asset managementcompanies to highlight the diversity of investment thatmutual fund offer.

� The study one would understand how a common mancould fruitfully convert an inadequate payment into great

penny by wisely investing into the right scheme accordingto his risk taking abilities.

� The study here has been limited to analyze open-ended

equity Growth schemes of different Asset ManagementCompanies namely Kotak Mahindra Mutual Fund,Reliance Mutual Fund, LIC and SBI Mutual Funds eachscheme is analyzed according to its performance againstthe other .



� The data collected for this project is basically from

one source, that is:-

Secondary sources: Collection of data from Internet

and Books.

� And some formulas or factors which help to find out

the performance of different schemes of mutual

funds and compare with the different companymutual funds.





� Kotak Mahindra Mutual Fund (KMMF) is managed by Kotak Mahindra Asset Management Company

Ltd., a wholly owned subsidiary of Kotak Mahindra

Bank Ltd.

� The Kotak Mahindra Group was born in 1985 as

Kotak Capital Management Finance Limited.

� Industrialists Harish Mahindra and Anand

Mahindra took a stake in 1986, and that's whenthe company changed its name to Kotak

Mahindra Finance Limited.



Company

nameReliance Kotak Lic Sbi

Month (R) (R) (R) (R)

January 0.804158 0.616715 -0.01166 1.911105

February 0.713947 0.496376 -0.07525 1.782526

March 0.798619 0.501922 -0.02994 1.9413

April 0.86495 0.443314 -0.00688 2.046632

Total 3.181674 2.058327 -0.12373 7.681563

Averagereturn 0.79

5419

0.

51458

2 -0.

0309

3 1.9

2039

1

EQUITY LINKED SAVING SCHEME- DIVIDEND OPTION:

Interpretation:

From this analysis, SBI Magnum Equity Scheme Performance is best out of the three Schemes

of Mutual Fund companies in case of Dividend Option, ranks first with the highest in all four

months and with the highest average return of 1.920391. . In sharpe¶s and treynor¶s ratio, SBI

magnum performance is best out of three schemes.



Company



January 2.409789 2.593483 1.508264 2.859263

February 2.239 2.326003 1.346893 2.687947

March 2.39919 2.464809 1.461882 2.89835

April 2.5244 2.545314 1.520405 3.038158

Total 9.572379 9.929609 5.837444 11.48372

Averagereturn 2.

39

309

5 2.

48

2402 1.

459

36

1 2.87

09

3

EQUITY LINKED SAVING SCHEME- GROWTH OPTION:

Interpretation:

From this analysis, SBI Magnum Equity Scheme Performance is best out of the three Schemes

of Mutual Fund companies in case of Growth Option, ranks first with the highest in all four

months and with the highest average return of 2.87093.



Company



January 0.639053 0.635735 0.159723 1.574211

February 0.583579 0.554723 0.088146 1.471

March 0.636524 0.569265 0.123576 1.5613

April 0.6622 0.58095 0.143127 1.640684

Total 2.521356 2.340673 0.514572 6.247195

Averagereturn

0.630339 0.585168 0.128643 1.561799

BALANCED SCHEME- DIVIDEND OPTION:

Interpretation:

From this analysis, SBI Magnum Balanced Scheme Performance is best out of the threeSchemes of Mutual Fund companies in case of Dividend Option, ranks first with thehighest in all four months and with the highest average return of 1.561799.



Company



January 1.343632 1.151691 4.486895 3.797474

February 1.264263 1.045121 4.148242 3.604895

March 1.339905 1.114453 4.315871 3.77335

April 1.3768 1.216672 4.408368 3.921

Total 5.3246 4.527937 17.35938 15.09672

Averagereturn

1.33115 1.131984 4.339844 3.77418

BALANCED SCHEME- GROWTH OPTION:

Interpretation:

From this analysis, LICMF Balanced Scheme Performance is best out of the three Schemes of

Mutual Fund companies in case of Growth Option, ranks first with the highest in all four

months and with the highest average return of 4.339844.



� FROM EQUITY LINKED SAVING SCHEME

(DIVIDEND OPTION)

1. Average Returns: SBI Equity Scheme performance is ranked

as first with the highest average Return of 1.9203912. Sharpe Ratio: SBI Equity Scheme performance is ranked as

first with the highest Sharpe Index Ratio of 0.651913 and

with the highest Standard Deviation of 2.880586 followed by

RELIANCE, KOTAK and LIC. This shows that higher the

risk higher the return.

3. Treynor Ratio: SBI Equity Scheme performance is again

ranked as first with the highest Treynor Ratio of 1.93597,

followed by RELIANCE, KOTAK and LIC.



� FROM EQUITY LINKED SAVING SCHEME(GROWTH OPTION)

1. Average Returns: SBI Equity Scheme performance is rankedas first with the highest Average Return of 2.87093

2. Sharpe Ratio: SBI Equity Scheme performance is ranked asfirst with the highest Sharpe Index Ratio of 0.656798 andwith the highest Standard Deviation of 4.306394, followed

by KOTAK, RELIANCE and LIC. This shows that higher the risk higher the return.

3. Treynor Ratio: SBI Equity Scheme performance is againranked as first in case of Treynor ratio with the highestTreynor Ratio of 2.915907, followed by RELIANCE,KOTAK and LIC.



� FROM BALANCED SCHEME (DIVIDEND OPTION)

1. Average Returns: SBI Balanced Scheme performance is

ranked as first with the highest Average Return of 1.561799

2. Sharpe Ratio: SBI Balanced Scheme performance is rankedas first with the highest Sharpe Index Ratio of 0.648525 and

with the highest Standard Deviation of 2.342698, followed

by RELIANCE, KOTAK and LIC.

3. Treynor Ratio: SBI Balanced Scheme performance is ranked

as first with the highest Treynor Ratio of 1.332718, followed

by RELIANCE, KOTAK and JM. Higher the Treynor Ratio

is an indicator of favorable performance.



� FROM BALANCED SCHEME (GROWTH OPTION)

1. Average Returns: SBI Balanced Scheme performance is

ranked as first with the highestAverage Return of 3.77418

2. Sharpe Ratio: SBI Balanced Scheme performance is rankedas first with the highest Sharpe Index Ratio of 0.65916, and

with the highest Standard Deviation of 5.66127, followed by

LIC, Prudential RELIANCE and KOTAK. This shows that

higher the risk, higher the return.

3. Treynor Ratio: LIC Balanced scheme performance is ranked

as first with the highest Treynor Ratio of 4.964935, followed

by SBI, RELIANCE and KOTAK.



� The Company should come forward to introduce moreschemes at the right time for the benefit of the fundhouse, investors, brokers, and the distributors.

� In general the private sector mutual fund companiesoutperforms the public sector mutual fund companies, if the Kotak Mahindra AMC Company understands their Competitors and the market they will have a hedge over their competitors in the future.

� A typical individual is not likely to have the knowledge,skills, inclination and time to keep track of andunderstand the causes and implication of the pricechanges and trends. So, the Asset managementcompany¶s should come forward to educate individualsabout the benefits of mutual funds.



� Mutual Funds are the ideal investment vehicle for today¶s complex and modern financial scenario.

� The public sector mutual fund company¶s performanceis better than the private sector mutual fund companiesin case of Equity Linked Savings Scheme.

� The public sector mutual fund Companies outperformsthe private sector mutual fund companies of two ratiosviz., Sharpe Ratio and Treynor Ratio in case BalancedScheme.

� We can arrive at the conclusion that indeed existingfunds have surpassed newer ones by a mile and wewould be much better off sticking to existing funds withexcellent track records than running after fancy terms,

names & themes.

Documents

A Study on Different Schemes With Comparison &