Mutual-Fund ( NAV ) project

8/7/2019 Mutual-Fund ( NAV ) project

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MUTUAL FUND

A

PROJECT REPORT

ON

MANAGEMENT OF FINANCIAL SERVICES

SUBMITTED TOWARDS PARTIAL FULFILLMENT

OF

POSTGRADUATE PROGRAMME IN MANAGEMENT

SUBMITTED TO SUBMITTED BY

PROF: SAMARJEET SEN D.RAVI H2-23

GUPTA

(3rd SEMESTER)

SPECIALIZATION MARKETING + FINANCE

EASTERN INSTITUTE FOR INTEGRATED LEARNING IN MANAGEMENT

GILANDER HOUSE

NOTICE


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THIS PROJECT IS SOLELY DONE BY ME , AND SHOULD BE TAKEN AS FOR

READING AND UNDERSTANDING PURPOSE ONLY. IT MAY BE WITH

RESULTS WHICH MAY ALTER FULLY OR PARTIALY. TAKE THIS PROJECTONL FOR UNDERSTAND PUPOSE.


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ACKNOWLEDGEMENT

We are thankful to MR. Samarjeet sen gupta who has given this opportunity

for doing a project work on MUTUAL FUND. From this study we have

gathered knowledge of services which are provided by the mutual fund

houses and also find out which of the firm is having good service.


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1)INTRODUCTION

Mutual funds works in the area of stocks and bonds.

Stocks

Stocks represent shares of ownership in a public company. Examples of public

companies include Reliance, ONGC and Infosys. Stocks are considered to be the

most common owned investment traded on the market.

Bonds

Bonds are basically the money which you lend to the government or a company,

and in return you can receive interest on your invested amount, which is back

over predetermined amounts of time. Bonds are considered to be the most

common lending investment traded on the market.

There are many other types of investments other than stocks and bonds

(including annuities, real estate, and precious metals), but the majority of

mutual funds invest in stocks and/or bonds.

Regulatory authorities

To protect the interest of the investors, SEBI formulates policies and regulatesthe mutual funds. It notified regulations in 1993 (fully revised in 1996) andissues guidelines from time to time. MF either promoted by public or by privatesector entities including one promoted by foreign entities is governed by theseRegulations.

SEBI approved Asset Management Company (AMC) manages the funds bymaking investments in various types of securities. Custodian, registered withSEBI, holds the securities of various schemes of the fund in its custody.

According to SEBI Regulations, two thirds of the directors of Trustee Company


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or board of trustees must be independent.The Association of Mutual Funds in India (AMFI) reassures the investors in unitsof mutual funds that the mutual funds function within the strict regulatory

framework. Its objective is to increase public awareness of the mutual fund

industry.

AMFI also is engaged in upgrading professional standards and in promoting

best industry practices in diverse areas such as valuation, disclosure,

transparency etc.

2) Mutual funds

What is mutual fund?

A mutual fund is just the connecting bridge or a financial intermediary that

allows a group of investors to pool their money together with a predetermined

investment objective. The mutual fund will have a fund manager who is

responsible for investing the gathered money into specific securities (stocks orbonds). When anyone invest in a mutual fund, the person is buying units or

portions of the mutual fund and thus on investing becomes a shareholder or unit

holder of the fund. Mutual funds are considered as one of the best available

investments as compare to others they are very cost efficient and also easy to

invest in, thus by pooling money together in a mutual fund, investors can

purchase stocks or bonds with much lower trading costs than if they tried to do

it on their own. But the biggest advantage to mutual funds is diversification, by

minimizing risk & maximizing returns

Types of mutual fund

Wide variety of Mutual Fund Schemes exists to cater to the needs such as

financial position, risk tolerance and return expectations etc. thus mutual funds


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has Variety of flavors, Being a collection of many stocks, an investors can go for

picking a mutual fund might be easy. There are over hundreds of mutual funds

scheme to choose from

Mutual fund category: BY STRUCTURE

i) Open ended scheme

An open-end fund is one that is available for subscription all through the year.

These do not have a fixed maturity. Investors can conveniently buy and sell units

at Net Asset Value ("NAV") related prices. The key feature of open-end schemesis liquidity

ii)Close ended scheme

These schemes have a pre-specified maturity period. One can invest directly in

the scheme at the time of the initial issue. Depending on the structure of the

scheme there are two exit options available to an investor after the initial offer

period closes. Investors can transact (buy or sell) the units of the scheme on the

stock exchanges where they are listed. The market price at the stock exchanges

could vary from the net asset value (NAV) of the scheme on account of demand

and supply situation, expectations of unit holder and other market factors.

Alternatively some close-ended schemes provide an additional option of selling

the units directly to the Mutual Fund through periodic repurchase at the

schemes NAV; however one cannot buy units and can only sell units during the

liquidity window. SEBI Regulations ensure that at least one of the two exit

routes is provided to the investor

iii) INTERVAL SCHEMES

Interval Schemes are that scheme, which combines the features of open-ended

and close-ended schemes. The units may be traded on the stock exchange or may


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be open for sale or redemption during pre-determined intervals at NAV related

prices

Mutual fund category: BY NATURE

i) EQUITY FUND

These funds invest a maximum part of their corpus into equities holdings. Thestructure of the fund may vary different for different schemes and the fundmanagers outlook on different stocks. The Equity Funds are sub-classifieddepending upon their investment objective, as follows:

y Diversified Equity Fundsy Mid-Cap Fundsy Sector Specific Fundsy Tax Savings Funds (ELSS)

Equity investments are meant for a longer time horizon, thus Equity funds rank

high on the risk-return matrix

ii) DEBT FUNDS

The objective of these Funds is to invest in debt papers. Government authorities,

private companies, banks and financial institutions are some of the major

issuers of debt papers. By investing in debt instruments, these funds ensure low

risk and provide stable income to the investors. Debt funds are further classified

as:

Gilt Funds: Invest their corpus in securities issued by Government,

popularly known as Government of India debt papers. These Funds carry

zero Default risk but are associated with Interest Rate risk. These schemes

are safer as they invest in papers backed by Government.

Income Funds: Invest a major portion into various debt instruments such

as bonds, corporate debentures and Government securities.


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MIPs: Invests maximum of their total corpus in debt instruments while

they take minimum exposure in equities. It gets benefit of both equity and

debt market. These scheme ranks slightly high on the risk-return matrix

when compared with other debt schemes.

Short Term Plans (STPs): Meant for investment horizon for three to sixmonths. These funds primarily invest in short term papers like Certificate

of Deposits (CDs) and Commercial Papers (CPs). Some portion of the

corpus is also invested in corporate debentures.

Liquid Funds: Also known as Money Market Schemes, These funds

provides easy liquidity and preservation of capital. These schemes invest

in short-term instruments like Treasury Bills, inter-bank call money

market, CPs and CDs. These funds are meant for short-term cash

management of corporate houses and are meant for an investmenthorizon of 1day to 3 months. These schemes rank low on risk-return

matrix and are considered to be the safest amongst all categories of

mutual funds.

iii) BALANCED FUND

As the name suggest they, are a mix of both equity and debt funds. They invest in

both equities and fixed income securities, which are in line with pre-definedinvestment objective of the scheme. These schemes aim to provide investors with

the best of both the worlds. Equity part provides growth and the debt part

provides stability in returns

Further the mutual funds can be broadly classified on the basis of

investment parameter viz,

Each category of funds is backed by an investment philosophy, which is pre-defined in the objectives of the fund. The investor can align his own investment

needs with the funds objective and invest accordingly.

Mutual fund By investment objective


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Growth Schemes: Growth Schemes are also known as equity schemes. The aim

of these schemes is to provide capital appreciation over medium to long term.

These schemes normally invest a major part of their fund in equities and are

willing to bear short-term decline in value for possible future appreciation.

Income Schemes: Income Schemes are also known as debt schemes. The aim of

these schemes is to provide regular and steady income to investors. These

schemes generally invest in fixed income securities such as bonds and corporate

debentures. Capital appreciation in such schemes may be limited.

Balanced Schemes: Balanced Schemes aim to provide both growth and income

by periodically distributing a part of the income and capital gains they earn.

These schemes invest in both shares and fixed income securities, in the

proportion indicated in their offer documents (normally 50:50).

Money Market Schemes: Money Market Schemes aim to provide easy liquidity,

preservation of capital and moderate income. These schemes generally invest in

safer, short-term instruments, such as treasury bills, certificates of deposit,

commercial paper and inter-bank call money.

Other scheme

Tax schemeTax-saving schemes offer tax rebates to the investors under tax laws prescribed

from time to time. Under Sec.88 of the Income Tax Act, contributions made to

any Equity Linked Savings Scheme (ELSS) are eligible for rebate.

Index scheme

Index schemes attempt to replicate the performance of a particular index such

as the BSE Sensex or the NSE 50. The portfolio of these schemes will consist of

only those stocks that constitute the index. The percentage of each stock to thetotal holding will be identical to the stocks index weightage. And hence, the

returns from such schemes would be more or less equivalent to those of the

Index.

Sector scheme


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These are the funds/schemes which invest in the securities of only those sectors

or industries as specified in the offer documents. E.g. Pharmaceuticals, Software,

Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in

these funds are dependent on the performance of the respective

sectors/industries. While these funds may give higher returns, they are morerisky compared to diversified funds. Investors need to keep a watch on the

performance of those sectors/industries and must exit at an appropriate time.

Types of return

There are three ways, where the total returns provided by mutual funds can be

enjoyed by investors:

Income is earned from dividends on stocks and interest on bonds. A fund pays

out nearly all income it receives over the year to fund owners in the form of a

distribution.

If the fund sells securities that have increased in price, the fund has a capital

gain. Most funds also pass on these gains to investors in a distribution.

If fund holdings increase in price but are not sold by the fund manager, the

fund's shares increase in price. You can then sell your mutual fund shares for aprofit. Funds will also usually give you a choice either to receive a check for

distributions or to reinvest the earnings and get more shares

3)Different plans that Mutual fund offers?

Dividend Plan: Under the Dividend Plan, the fund distributes a substantial partof the surplus to investors in the form of dividend (income distribution).

Growth Plan: Under the Growth Plan, an investor realizes only the capital

appreciation on the investment (by an increase in NAV) and normally does not

get any income in the form of income distribution.


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Re-investment Plan: Here the income distribution accrued on a mutual fund

scheme is automatically re-invested in purchasing additional units under the

scheme. In most cases mutual funds offer the investors an option of collecting

income distribution or re-invest in the same scheme at scheme NAV/NAV based

price.

4)What is a mutual fund's NAV?Net asset value (NAV) represents a fund's per share market value. This is the

price at which investors buy ("bid price") fund shares from a fund company and

sell them ("redemption price") to a fund company. It is derived by dividing the

total value of all the cash and securities in a fund's portfolio, less any liabilities,by the number of shares outstanding. An NAV computation is undertaken once

at the end of each trading day based on the closing market prices of the

portfolio's securities.

For example, if a fund has assets of $50 million and liabilities of $10 million, it

would have a NAV of $40 million.

This number is important to investors, because it is from NAV that the price per

unit of a fund is calculated. By dividing the NAV of a fund by the number of

outstanding units, you are left with the price per unit. In our example, if the fund

had 4 million shares outstanding, the price-per-share value would be $40 million

divided by 4 million, which equals $10.

This pricing system for the trading of shares in a mutual fund differs

significantly from that of common stock issued by a company listed on a stock

exchange. In this instance, a company issues a finite number of shares through

an initial public offering (IPO), and possibly subsequent additional offerings,

which then trade in the secondary market. In this market, stock prices are set by

market forces of supply and demand. The pricing system for stocks is based

solely on market sentiment.


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Because mutual funds distribute virtually all their income and realized capital

gains to fund shareholders, a mutual fund's NAV is relatively unimportant in

gauging a fund's performance, which is best judged by its total return.

5)ADVANTAGE & DISADVANTAGE OF MUTUAL FUND.

Advantage of mutual funds.

1. Professional Management - The basic advantage of funds is that, they are

professional managed, by well qualified professional. Investors purchase funds

because they do not have the time or the expertise to manage their own

portfolio. A mutual fund is considered to be relatively less expensive way to make

and monitor their investments

2. Diversification - Purchasing units in a mutual fund instead of buying

individual stocks or bonds, the investors risk is spread out and minimized up to

certain extent. The idea behind diversification is to invest in a large number of

assets so that a loss in any particular investment is minimized by gains in others.

3. Economies of Scale - Mutual fund buy and sell large amounts of securities at

a time, thus help to reducing transaction costs, and help to bring down the

average cost of the unit for their investors.

4. Liquidity -Just like an individual stock, mutual fund also allows investors to

liquidate their holdings as and when they want.

5. Simplicity - Investments in mutual fund is considered to be easy, compare to

other available instruments in the market, and the minimum investment is

small. Most AMC also have automatic purchase plans whereby as little as Rs.

2000, where SIP start with just Rs.50 per month basis.

Disadvantages of Investing Mutual Funds:


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1.Professional Management- Some funds doesnt perform in neither the

market, as their management is not dynamic enough to explore the available

opportunity in the market, thus many investors debate over whether or not the

so-called professionals are any better than mutual fund or investor himself, for

picking up stocks.

2. Costs The biggest source of AMC income, is generally from the entry & exit

load which they charge from an investors, at the time of purchase. The mutual

fund industries are thus charging extra cost under layers of jargon

3. Dilution - Because funds have small holdings across different companies, high

returns from a few investments often don't make much difference on the overall

return. Dilution is also the result of a successful fund getting too big. When

money pours into funds that have had strong success, the manager often hastrouble finding a good investment for all the new money.

4. Taxes - when making decisions about your money, fund managers don't

consider your personal tax situation. For example, when a fund manager sells a

security, a capital-gain tax is triggered, which affects how profitable the

individual is from the sale. It might have been more advantageous for the

individual to defer the capital gains liability.


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6)MUTUAL FUND CHOOSEN FOR STUDY

BIRLA SUNLIFE MUTUAL FUND

BIRLA SUN LIFE ADVANTAGE FUND GROWTH

Birla Sun Life ADVANTAGE Fund is a diversified equity fund enabling

investors to capitalize on the immense growth opportunities provided by the

stock market while at the same time minimizing the risk.

Launched in Feb 24, 1995, the fund is an open-ended growth scheme with a

LARGE CAP theme.

OBJECTIVE

Aims to achieve long term growth of capital at relatively moderate levels of

risk through a diversified research based investment approach.

Fund features

Type of scheme Open ended

Nature Equity

Option Growth

Inception date Feb24-1995


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Face value( rs/unit) 10

Fund size in (rs crore) 405.44 as on nov 30, 2009

Last dividend declared 80 % as on march 30,2000

Minimum investment(rs) 5000/-

Purchase redemption daily

nav Daily

Entry load 0%

Exit load If redeemed between 0 days to 7

days exit load is 0.5%

Increase or decrease in fund size as

on oct 30,2009(in rs crore)

-4.8

Mutual fund

Birla Sun Life Mutual Fund

Ahura Centre , 2nd Floor, A. 96/A-D,

Mahakali Caves Road, Andheri (E)

Mumbai

Tel.-56928000

Asset Management Company

Birla Sun Life Asset Management Company Ltd.

One India Bulls Centre , Tower 1, 17th Flr

841, Senapati Bapat Marg, Elphinstone Road

Mumbai - 400013 Tel.- 66928000

Registrar

Computer Age Management Services Private Limited


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A&B, Lakshmi Bhavan

609, Anna Salai

Chennai

NAV

Latest nav 146.80 as on dec 2009

Bench mark index-bse sensex 16,719.83 as on dec 18, 2009

52 week high 150.76 as on dec 8, 2009

52 week low 66.01 as on mar 9, 2009

Risk and return

Scheme performance as on dec 18,2009

1 month 3 month 6 month 1 year 3 year 5year Since

inception

-1.18 2.22 22.41 77.10 6.04 18.90 20.40

Risk

mean -0.55


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Standard deviation 5.51

beta 0.93

Portfolio

P/E 26.43 AS ON NOV 2009

P/B 4.36 AS ON NOV 2009

Dividend yielded 0.87 as on Nov - 2009

Market capital(Rs in crore)

Large

Mid

small

71,009.95 as on Nov - 2009

63.25 AS ON NOV 2009

33.28 AS ON NOV 2009

NA AS ON NOV 2009

Top 5 holding percentage 20.29 AS ON NOV 2009

No of stocks 47

Expense ratio 2.32

Whats in?

Housing Development Finance Corporation Ltd.

Mahindra & Mahindra Ltd

Cipla Ltd

Tata Steel Ltd.


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Whats out?

Hindustan Petroleum Corporation Ltd

Housing Development Finance Corporation Ltd

Indian Oil Corporation Ltd

Dharti Dredging

Asset allocation

Equity Debt Cash & equivalent

96.62 0.0 3.38

equty

debt

cash & equivalent


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7)MUTUAL FUNDS CHOOSEN FOR COMPARISION

i)FRANKLIN ASIAN EQUITY FUND GROWTH

OBJECTIVE

An open-end diversified equity fund that seeks to provide medium to longterm appreciation through investments primarily in Asian Companies /

sectors (excluding Japan) with long term potential across market

capitalization

Fund features


Nature Equity

Option Growth

Inception date Jan 16,2008



Last dividend declared NA



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nav Daily

Entry load 0%

Exit load If redeemed between 0 year to 1

year exit load is 1%



1.62

Mutual fund

Franklin Templeton Mutual Fund

Level 4, Wockhardt Towers

Bandra Kurla Complex, Bandra (East).

Mumbai

Tel.-67519100


Franklin Templeton Asset Management (India) Pvt. Ltd.

Wockhardt Towers, 4th Floor,

Bandra Kurla Complex,

Mumbai - 400051 Tel.- 67519100

Registrar

Franklin Templetion Asset Managment (India) Pvt. Ltd.

Franklin Templetion Centre, no.7,

3rd Cross Street, Adyar

Chennai

Tel.-24407000


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NAV

Latest nav 10.06 as on dec 18, 2009

Bench mark index-bse sensex NA



Risk and return

Scheme performance as on dec 18, 2009


inception

-0.61 -0.54 17.28 46.57 NA NA 0.32

Risk

mean -0.28


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beta 7.87

Portfolio

P/E 2.14 AS ON NOV 2009

P/B 0.86 AS ON NOV 2009

Dividend yielded 0.13


Large

Mid

small

2,866.02

4.80 AS ON NOV 2009

4.97 AS ON NOV 2009

NA AS ON NOV 2009

Top 5 holding percentage 26.30

No of stocks 58

Expense ratio 2.30

Whats in?

HDFC Bank Ltd.

Great Eastern Shipping Company Ltd

Hyundai Engineering & Construction (South Korea)


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Whats out?

Hankook Tire America Corp.

HDFC Bank Ltd

Oil & Natural Gas Corpn Ltd

KT&G Corp

Asset allocation


95.52 0.0 4.48

ii) ING CORE EQUITY FUND GROWTH

OBJECTIVE

Seeks to provide long term capital appreciation by investing pre- dominantly

in a portfolio of high quality equity and equity related securities

Fund features


Nature Equity

Option Growth


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Inception date May 6,1999






Nav Daily

Entry load 0%

Exit load If redeemed between 0 days to 365

days exit load is 1%



2.8

Mutual fund

ING Mutual Fund

101 Windsor ,

1st Floor,Off C.S.T.Road, Santacruz E

Mumbai

Tel.-3982 7999


ING Investment Management (India) Pvt Ltd.

601/602,"Windsor", Off CST Road,

Kalina, Santacruz (E),

Mumbai - 400098 Tel.- 40827999


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Registrar

Computer Age Management Services Private Limited

A&B, Lakshmi Bhavan

609, Anna Salai

Chennai

Nav

Latest nav 33.14 as on Dec 21, 2009

Bench mark index-bse sensex 8,809.14 as on Dec 21, 2009

52 week high 33.97 as on Dec 10, 2009

52 week low 16.48 as on Mar 9, 2009

Risk and return



inception

1.09 3.51 21.97 69.34 7.74 21.51 11.99


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Risk

Mean -0.54


Beta 0.92

Portfolio

P/E 30.65 AS ON NOV 2009

P/B 4.73 AS ON NOV 2009



Large

Mid

Small

90,863.16

74.55 AS ON NOV 2009

18.43 AS ON NOV 2009

NA AS ON NOV 2009

Top 5 holding percentage 26.59 AS ON NOV 2009

No of stocks 41

Expense ratio 2.50

Whats in?

Maruti Suzuki India Ltd

Financial Technologies


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Whats out?

Reliance Communication Ventures Ltd.

JaiPrakash Associates Ltd.

Asset allocation


92.98 0.0 7.02

iii) MORGAN STANLEY A.C.E FUND - GROWTH

OBJECTIVE

The investment objective of the scheme is to generate long-term capital

growth from an actively managed portfolio of equity and equity-related

securities including equity derivatives.

Fund features


Nature Equity

Option Growth

Inception date Apr 3,2008


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Purchase redemption Daily

nav Daily

Entry load 0%





13.16

Mutual fund

Morgan Stanley Mutual Fund

Forbes Building, 5th Floor,

Charanjit Rai Marg,

Mumbai

Tel.-2209 7045 ,22096600


Morgan Stanley Asset Management (I) Pvt. Ltd.

Office No. 201, 2nd Floor,

DBS House, Prescott Street, Fort,

Mumbai - 400001 Tel.- 40779226 ,40779227

Registrar

Karvy Computershare Pvt. Ltd.


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21, Avenue 4,

Street No 1, Banjara Hills

Hyderbad

NAV


Bench mark index-bse sensex 2097.18



Risk and return



inception

1.53 11.05 37.49 93.84 NA NA 15.09

Risk


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mean -0.47


beta 0.93

Portfolio

P/E 24.29 AS ON NOV 2009

P/B 4.53 AS ON NOV 2009



Large

Mid

small

53,415.21

54.38 AS ON NOV 2009

34.28 AS ON NOV 2009

5.16 AS ON NOV 2009


No of stocks 49

Expense ratio 2.48

Whats in?


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Power Finance Corporation Ltd

I-Flex Solutions Limited

Cox & Kings Ltd.

Whats out?

Reliance

Infrastructure

Ltd.

Exide

Industries Ltd

Jindal Steel

and Power

Ltd.

Asset allocation


94.94 0.0 5.06

iv) Reliance mutual fund


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OBJECTIVE

The primary investment objective of the scheme is to seek to generate capital

appreciation & provide long-term growth opportunities by investing in a

portfolio constituted of equity & equity related securities of top 100companies by market capitalization & of companies which are available in the

derivatives segment from time to time and the secondary objective is to

generate consistent returns by investing in debt and money market securities.

Fund features


Nature Equity

Option Growth

Inception date Mar 28,2006





Purchase redemption Daily

nav Daily

Entry load 0%




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65.71

Mutual fund

Reliance Mutual Fund

Kamala Mills Compound, Trade World, B - Wing

7th Floor, Senapati Bapat Marg, Lower parel (West)

Mumbai

Tel.-30414800Asset Management Company

Reliance Capital Asset Management Ltd.

11th & 12th Flr One India Bull Centre, Tower 1

841 Senapati Bapat Marg, Elphinstone Rd

Mumbai - 400013 Tel.- 30414800 ,30301111

Registrar

Karvy Computershare Pvt. Ltd.

21, Avenue 4,

Street No 1, Banjara Hills

Hyderbad

NAV


Bench mark index-bse sensex 4987.70




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Risk and return



inception

-0.91 0.35 16.68 49.27 8.64 NA 11.09

Risk

mean -0.40


beta 0.73

Portfolio

P/E 29.56 AS ON NOV 2009

P/B 3.99 AS ON NOV 2009


Market capital(Rs in crore) 76,849.00


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Large

Mid

small

62.50 AS ON NOV 2009

13.27 AS ON NOV 2009

NA AS ON NOV 2009


No of stocks 21

Expense ratio 1.86

Whats in?

BharatHeavy Electricals Ltd

Whats out?

HindustanPetroleum

Corporation

Ltd


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Asset allocation


87.20 0.0 12.80


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Comparative analysis of different mutual funds


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Exit Load If

redeemed

between 0

days to 7

days exitload is

0.5%

If

redeemed

between 0

year to 1

year exitload is 1%

If

redeemed

between 0

days to

365 daysexit load is

1%

If

redeemed

between 0

year to 1

year exitload is 1%

If

redeemed

between 0

year to 1

year exitload is 1%

Increase or

decrease in

funds since

oct

30,2009(rscrore)

-4.8 1.62 2.8 13.16 65.71

Findings

a) All funds are open ended, growth equity funds.

b)Fund size of RELIANCE MUTUAL fund is maximum.c) Minimum requirement of fund for investment in any of the scheme is

5000/- Rs.

d)NAV is calculated on daily basis.

e) Exit load ofBIRLA SUNLIFE ADVANTAGE fund is very low 0.5% for the

first week.


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f) Reliance mutual fund has the highest increase in funds since oct,2009.

g) All funds are showing positive growth but birla sunlife is showing

negative growth.

-10

0

10

20

30

40

50

60

70

Increase or decrease in funds

since oct 30,2009(rs crore)


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2)On the basis of NAVcompany Birla

sunlife

advantage

FRANKLIN

ASIAN

EQUITY

INGCore

Equity

Fund

Morgan

Stanley A

Reliance

Equity

Fund

Latest NAV 146.80 as

on Dec ,

2009

10.06 as on

dec 18,

2009

33.14 as

on Dec

21, 2009

12.72 as on

dec 18,

2009

14.80 as on

dec 18,

2009

Benchmark

Index - S&P

Nifty

16,719.83

as on dec

18, 2009

NA 8,809.14as on Dec

21, 2009

2097.18 4987.70

52 - Week

High

150.76 as

on dec 8,

2009

10.29 as on

dec 7, 2009

33.97 as

on Dec

10, 2009

12.85 as

on dec 7,

2009

15.24 as

on dec 7,

2009

52 - Week

Low

66.01 as on

mar 9,

2009

6.23 as on

mar 9,

2009

16.48 as

on Mar 9,

2009

5.29 as on

mar 9,

2009

8.21 as on

mar 9,

2009


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findings:

1)Nav of birla sunlife fund has much fluctuation

2)RELIANCE mutual fund has less fluctuauion in NAV.

0

50

100

150

200

250

Birla

sunlife

advantage

Franklin

Asian

Equity

ING Core

Equity

Fund

Morgan

Stanley A

Reliance

Equity

Fund

52- Week Low

52- Week High


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3)On the basis of Risk & return

SCHEME PERFORMANCE (%) AS ON DEC 18, 2009

company 1

MONT

H

3

MONTH

S

6

MONTH

S

1

YEA

R

3

YEA

R

5

YEA

R

SINCE

INCEPTIO

N

Birla

sunlife

advantag

-1.18 2.22 22.41 77.10 6.04 18.9 20.40

FRANKLI

N ASIAN

EQUITY

-0.61 -0.54 17.28 46.57 NA NA 0.32

INGCore

Equity

Fund

1.09 3.51 21.97 69.34 7.74 21.51 11.99

Morgan

Stanley A

1.53 11.05 37.49 93.84 NA NA 15.09

Reliance

Equity

Fund

-0.91 0.35 16.68 49.27 8.64 NA 11.09


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f)The second good performer is BIRLA SUNLIFE ADVANTAGE MUTUAL FUND.

g)Franklin Asian equity fund is the lowest performer of all.

4)On the basis of Risk

company Birla

sunlifeadvantage

FRANKLIN

ASIANEQUITY

INGCore

EquityFund

Morgan

Stanley A

Reliance

EquityFund

Mean -0.55 -0.28 -0.54 -0.47 -0.40

Standard

deviation

5.51 4.11 5.44 5.50 4.33

Beta 0.93 7.87 0.92 0.93 0.73

-1

0

1

2

3

4

5

6

7

8

9

mean

Standard deviation

beta


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Dividend

yield

0.87 0.13 1.77 0.75 0.72

Market

capital(inRs crore)

71,009.95 2,866.02 90,863.16 53,415.21 76,849.00

large 63.25 4.80 74.55 54.38 62.50

mid 33.28 4.97 18.43 34.28 13.27

small NA NA NA 5.16 AS ON

NOV 2009

NA

Top 5

holding %

20.29 26.30 26.59 19.10 34.07

No of

stocks

47 58 41 49 21

Expense

ratio (%)

2.32 2.30 2.50 2.48 1.86

( P/E ratio, P/B ratio, market capital all are takenAS ON NOV 2009)

{p/e ratio= market value of share/ earning per share.

p/b ratio= stock price/ (total assets- intangible assets and liabilities.)}


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Graph on p/e & p/b ratio

Graph on no of stocks each fund has.

0

5

10

15

20

25

30

35

Birla sunlife

advantage

Franklin Asian

Equity

ING Core Equity

Fund

Morgan Stanley

A

Reliance Equity

Fund

P/E

P/B

0

10

20

30

40

50

60

Birla sunlife

advantage

Franklin

Asian Equity

ING Core

Equity Fund

Morgan

Stanley A

Reliance

Equity Fund

No of stocks

No of stocks


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Findings:

a) P/E ratio of ING Core Equity Fund is maximum, while the minimum is of

FRANKLIN ASIAN EQUITY.

b) P/B ratio of ING Core Equity Fund is maximum, while the minimum is of

FRANKLIN ASIAN EQUITY.

c) MARKET CAPITAL OF ING Core Equity Fund is much higher 90,863.16

d) Expense ratio of all mutual funds is almost same.

e) Franklin has highest no of stocks.

6)On the basis ofAsset allocation (%)

Company Birla

sunlifeadvantage

FRANKLIN

ASIANEQUITY

ING Core

EquityFund

Morgan

Stanley A

Reliance

EquityFund

Equity 96.62 95.52 92.98 94.94 87.20

Debt 0.0 0.0 0.0 0.0 0.0

Cash &

equivalent

3.37 4.48 7.02 5.06 12.80


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Graph for asset allocation investment.

findings

a)Mutual fund invests most of their investment in EQUITY.

b)There is no investment in DEBT.

c)Investment in cash & equivalent is very low.

0

20

40

60

80

100

120

Birla sunlife

advantage

Franklin Asian

Equity

ING Core

Equity Fund

Morgan

Stanley A

Reliance

Equity Fund

equity

debt

Cash & equivalent


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7)ConclusionA mutual fund brings together a group of people and invests theirmoney in stocks, bonds, and other securities.The advantages of mutuals are professional management,diversification ,economies sale, simplicity and liquidity.The disadvantages of mutuals are high costs, over-diversification,

possible tax consequences, and the inability of management toguarantee a superior return.There are many, many types of mutual funds. You can classify fundsbased on asset class, investing strategy, region, etc.Mutual funds have lots of costs.Costs can be broken down into ongoing fees (represented bytheexpense ratio) and transaction fees (loads)The biggest problems with mutual funds are their costs and fees.Mutual funds are easy to buy and sell. You can either buy them

directly from the fund company or through a third party.

Mutual fund ads can be very deceiving.

8)Bibliography1)Www. Mutualfundindia.com2)www.birlasunlife mutualfund.com3)www.franklin funds.com4)www.reliancemutualfund.com5)www.morganstnleymutualfunds.com6)www.google.com7)www. Ing corefunds.com


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Documents

Mutual-Fund ( NAV ) project