12853150 Comparative Analysis of Mutual Funds 110904134713 Phpapp02
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Transcript of 12853150 Comparative Analysis of Mutual Funds 110904134713 Phpapp02
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COMPARATIVE ANALYSIS OF MUTUAL FUNDS
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MUTUAL FUND OPERATION FLOW CHART
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TYPES OF MUTUAL FUNDS SCHEMES
According to Maturity PeriodOpen Ended Close Ended
According to Investment Objective Growth/Equity Oriented Scheme Income / Debt Oriented Schemes Balanced Scheme
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INSTRUMENTS OF INVESTMENTEQUITY CONVERTIBLE DEBENTURES FIXED INCOME SECURITIES SHORT TERM SECURITIES
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Facilities Provided by Mutual Funds to the Investors
Systematic Investment Plan (SIP) Systematic Withdrawal Plan (SWP) Systematic Transfer Plan (STP) Dividend Transfer Plan (DTP) Auto debit facility and Electronic
Clearing Service (ECS) Switching
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INTRODUCTION TO THE ORGANIZATION
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SHAREKHAN BACKGROUNDRetail broking arm of the Mumbai based SSKI group. Established in 1922 Share khan's ground network includes over 700+ Share shops in 130+ cities in India. SSKIgroup ventured into institutional broking and corporate finance 18 years ago.
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OBJECTIVES OF THE STUDYThe present study focuses on the comparative analysis of mutual funds schemes performance. To evaluate the schemes on the basis of risk and return by calculating Beta, Alpha, Standard Deviation.
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RESEARCH METHEDOLOGY
TYPE OF RESEARCH -- Descriptive cum Analytical research
has been used because the researcher has no control over the variables. He can only report what has happened or what is happening. . In Analytical Research, the
researcher has to use facts and information already available and make an analysis on the basis of these only.
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DATA COLLECTION
The data has been collected from the secondary sources i.e. -- Fact sheets -- Annual Reports -- Offer Documents NAVs of selected schemes and closing values of S&P CNX 500 have been noted from www.amfindia.com and Mutual Fund Houses PersonalSites.
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SAMPLE & SAMPLING TECHNIQUE
SAMPLE SIZE: 7 Schemes of 4 Mutual Fund Companies namely Franklin Templeton, Reliance, HDFC and ICICI Prudential has been selected. SAMPLING TECHNIQUE: In the p
resent study Convenience Sampling technique has been used.
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DATA ANALYSIS AND FINDINGS
The following parameters have been chosen for comparison: Fund Objective Fund Style Fund Details History Portfolio Characteristics Sectoral Allocation PortfolioConcentration Performance Analysis
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Following Tests have been applied:
BETA ALPHA STANDARD DEVIATION
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BETA
A Beta is a measure of risk. It compares a mutual funds volatility with that of abenchmark. If the beta of the stock is 1, it means that the returns in the stoc
k are highly correlated to the benchmark index. If Beta is greater than 1, it means the stock is more volatile. If Beta is less than 1, than the stock is less volatile.
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COMPARATIVE ANALYSIS (BETA)
LARGE CAP FUND0.96 0.94 0.92 0.9 0.88 0.86 0.84 Franklin HDFC PRU ICICI Reliance India TOP 200Growth Vision Bluechip BETA
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MID CAP FUND1 0.98 0.96 0.94 0.92 0.9 0.88 0.86 0.84
BETA
F ranklin Prim a
HC DF C apital Builder
R eliance Growth
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ALPHA
Alpha is a financial term describing that part of an investors return that is dueto the skills of the investment manager, as distinct from the return of the mar
ket as a whole. i < rf: the m
n
ger or firm h
s destroyed v
lue i = rf: the m
n
ger or firm h
s neither cre
ted nor destroyed v
lue i > rf: the m
n
ger or firm h
scre
ted v
lue
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LARGE CAP FUNDS5 4 .5 4 3 .5 3 2 .5 2 1 .5 1 0 .5 0
AL H PA
F nk r
lin H F D C P U IC I R li
R IC e nce Indi
T OP 2 0 G 0 row th V ion isB chip lue
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MID CAP FUNDS6 5 4 3 2 1 0 -1 -2 -3 F n lin r
k P rim
HF DC Cp l
it
B ild r ue R li
ce ne G row th AP A LH
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STANDARD DEVIATIONThe tot
l risk of
given fund is me
sured in terms of st
nd
rd devi
tion. It tells us how much the v
lues h
ve devi
ted from the me
n of the v
lues.
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STANDARD DEVIATION
LARGE CAP FUNDS26 25.5 25 24.5 24 23.5 23 22.5 22 21.5
S TANDARD DEVIATION
F r
nklin HDF TOP PRU IC I Reli
nce C IC Indi
200 Growth Vis ion Bluechip
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MID CAP FUNDS29 28 27 26 25 24 23 22 F r
nklin HDF Reli
nce C Prim
C
pit
l Growth BuilderS TANDARD DEVIATION
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FINDINGSICICI PRU--This fund h
s
n
ggressive stock-picking style, but with
c
reful eye on risk control. -The fund h
s
gre
t exposure to b
nking
nd softw
re sector stocks. FRANKLIN TEMPLETON - Fr
nklin Indi
Blue-chip fund is one of the biggest diversified equity funds
nd is one of the most preferred l
rge c
p funds. - One of the
stonishing fe
tures of the funds investment style is the buy-
nd hold-str
tegy.
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RELIANCE -High returns c
n be expected from this fund but its
ggressiveness does not m
ke it
pt for conserv
tive investors. HDFC -The fund
s exposure to l
rge-c
p stocks is
cushion in the f
lling m
rkets. It h
s not been
top performer
s some of the other mid-c
p funds, but quite
consistent one -This fund is
good bet for those w
nting to invest in mid-c
ps but not willing to t
ke too much of
risk.
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CONCLUSIONS
Best option consider by the investors when it comes to investing their money inMutu
l Funds. This industry is growing
t
good p
ce. Money Invested in Mutu
l
Funds is s
fe. Investors who
re looking for very high inst
nt returns, mutu
l funds
re not recommended; they
re me
nt for investors committed to p
tient investing.
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RECOMMENDATIONSFollowing suggestions c
n be m
de so th
t the mutu
l fund houses c
n design their schemes in such
m
nner th
t it c
n improve their perform
nce
s comp
red toother AMCs. A thorough
n
lysis should be done while selecting the securities for
p
rticul
r portfolio. Fund
ment
l security
n
lysis should
lso be done i.e.the rel
tionship between
securitys return
nd economy wide events.
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THANK YOU..!!
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