Asiignment on Sapm

8/10/2019 Asiignment on Sapm

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ASSIGNMENT ON

SECURITY ANALYSIS & PORTFOLIOMANAGEMENT

A SYSTEMATIC STUDY ONINVESTMENT IN MUTUAL FUND

WITH PARTICULAR REFRENCE TO

NEW FUND OFFER (NFO)

Submitted by:

Smi! S"" # A$%&" S"

R' N' *

1


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TA+LE OF CONTENTS

CHAPTER ,

Objectives and Scope o St!d"###########$$$%

Intod!ction####################$'

M!t!a( F!nds ) An Ovevie*#############+

Undestandin, M!t!a( !nd#############$$-

Invest.ent in M!t!a( F!nd#############$/0

Go*t1 in Assets Unde Mana,e.ent########$$//

CHAPTER -

T"pes o M!t!a( F!nds##############$$$/2

Ris3 4ieac1" o dieent M!t!a( F!nds#######$/'

T"pes o et!ns t1at MFs oe to Investos######/+

M!t!a( F!nds 5s Ot1e Invest.ents#########$/-

CHAPTER .

61" invest in M!t!a( F!nds############$$$2%

Ris3s invo(ved in M!t!a( F!nds###########$2-

Eva(!ation o M!t!a( F!nds#############70

CHAPTER / (Lite!tu!e Re0ie1)

Ne* F!nd Oes 8NFOs9 in MF ind!st"#######$$7:

2


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Ana("sis o so.e NFOs (a!nc1ed in ecent past####;0

O(d 8e


4/85

Anne

Anne

O+7ECTIVES AND SCOPE OF THE STUDY

The objectives of the study is to analyses, in detail the growth pattern of

mutual fund industry in India and to evaluate performance of different

schemes floated by most preferred mutual funds in public fund in public and

private sector.

The main objectives of this project are:-

To study about the Mutual unds in India

To study the various Mutual unds schemes in India.

To study about the ris! factors involved in the Mutual unds and "ow

to analy#e it$

To study the performance indices that can be used for mutual fund

comparison.

To compare mutual funds of selected five companies on the basis of

their return and %harpe Inde&.

To study the people in which age and income group prefer mutual

funds over other investment options.

'


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Mutu Fu%d O8e!ti'% F'1 C"!t

HISTORY OF MUTUAL FUND INDUSTRY

The mutual fund industry started in 143 with the formation of the 5nit Trust of India

which was the initiative of the 6overnment of India and the eserve 0an! of India.

The history of mutual funds in India can be broadly classified into four distinct phases 7 -

First Phase : 19! " 19#$

*n *ct of 8arliament established 5nit Trust of India+5TI on 143. It was set up by the

eserve 0an! of India and functioned under the egulatory and administrative control of

the 0I. In 149:, 5TI was delin!ed from 0I and the I;0I too! over the regulatory and

administrative control in place of 0I. The first scheme launched by 5TI was 5nit

%cheme, 14'. *t the end of 14:: 5TI had s. 9)) crores of *5M.

%econ& Phase : 19#$ " 199' ()ntr* of P+b,ic %ector F+n&s

In 14:9, it was the entry of non-5TI, public sector mutual funds setup by public sector

ban!s and the


8/85

?ith the entry of the private sector funds in 1443, a new era started in the Indian Mutual

und Industry, giving the investors a wider choice of fund families. *lso, 1443 was the

year in which first Mutual und egulations came into being, under which all mutual

funds, e&cept 5TI were to be registered and governed. The erstwhile @othari 8ioneer

+ now merged with ran!lin Templeton was the first private sector mutual fund

registered in >uly 1443. The industry now functions under %0I egulations, 144. *t

the end of >anuary 2))3, there were 33 mutual funds with total assets of s. 1,21,:)(

crores. The 5TI with s. '',('1 crores of *5M was way ahead of other mutual funds.

Fo+rth Phase " %ince Febr+ar* .//'

In ebruary 2))3, following the repeal of the 5nit Trust of India *ct 143 5TI was

bifurcated into two separate entities. /ne is the %pecified 5nderta!ing of the 5nit Trust

of India with assets under management of s.24, :3( crores as at the end of >anuary

2))3, representing broadly, the assets of 5% ' scheme, assured return and certain other

schemes.

UNDERSTANDIN9 MUTUAL FUND

Eve" M!t!a( F!nd is .ana,ed b" a !nd .ana,eD *1o !sin, 1is

invest.ent .ana,e.ent s3i((s and necessa" eseac1 *o3s ens!es

.!c1 bette et!n t1an *1at an investo can .ana,e on 1is o*n$ T1e

capita( appeciation and ot1e inco.es eaned o. t1ese invest.ents ae

passed on to t1e investos 8a(so 3no*n as !nit 1o(des9 in popotion o t1e

n!.be o !nits t1e" o*n$

:


9/85

61en an investo s!bscibes o t1e !nits o a .!t!a( !ndD 1e beco.es

pat o*ne o t1e assets o t1e !nd in t1e sa.e popotion as 1is

contib!tion a.o!nt p!t !p *it1 t1e cop!s 8t1e tota( a.o!nt o t1e !nd9$

M!t!a( F!nd investo is a(so 3no*n as a .!t!a( !nd s1ae1o(de o a !nit

1o(de$ An" c1an,e in t1e va(!e o t1e invest.ents .ade into capita(

.a3et inst!.ents 8s!c1 as s1aesD debent!es etc9 is e(ected in t1e Net

Asset 5a(!e 8NA59 o t1e sc1e.e$

4


10/85

NA5 is deined as t1e .a3et va(!e o t1e M!t!a( F!nd sc1e.es assets

net o its (iabi(ities$ NA5 o a sc1e.e is ca(c!(ated b" dividin, t1e .a3et

va(!e o sc1e.es assets b" t1e tota( n!.be o !nits iss!ed to t1e

investos$

F'! Em8e:

A$ I t1e .a3et va(!e o t1e assets o a !nd is Rs$ /00D000@$ T1e tota( n!.be o !nits iss!ed to t1e investos is e!a( to /0D000$C$ T1en t1e NA5 o t1is sc1e.e H 8A9=8@9D i$e$ /00D000=/0D000 o /0$00>$ No* i an investo o*ns % !nits o t1is sc1e.e

E$ T1en 1is tota( contib!tion to t1e !nd is Rs$ %0 8i$e$ N!.be o !nits1e(d .!(tip(ied b" t1e NA5 o t1e sc1e.e9

INVESTMENT IN MUTUAL FUNDS

M!t!a( F!nds ove t1e "eas 1ave ,ained i..ense(" in t1ei pop!(ait"$

Apat o. t1e .an" advanta,es t1at investin, in .!t!a( !nds povide (i3e

divesiicationD poessiona( .ana,e.entD t1e ease o invest.ent pocess

1as poved to be a .ajo enab(in, acto$ 4o*eveD *it1 t1e intod!ction o

innovative pod!ctsD t1e *o(d o .!t!a( !nds no*ada"s 1as a (ot to oe

to its investos$ 6it1 t1e intod!ction o divese optionsD investos needs to

1)


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c1oose a .!t!a( !nd t1at .eets 1is is3 acceptance and 1is is3 capacit"

(eve(s and 1as si.i(a invest.ent objectives as t1e investo$

6it1 t1e p(et1oa o sc1e.es avai(ab(e in t1e Indian .a3etsD an investos

needs to eva(!ate and conside vaio!s actos beoe .a3in, an

invest.ent decision$ Since not eve"one 1as t1e ti.e o inc(ination to

invest and do t1e ana("sis 1i.se(D t1e job is best (et to a poessiona($

Since Indian econo." is no .oe a c(osed .a3etD and 1as stated

inte,atin, *it1 t1e *o(d .a3etsD e


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MUTUAL FUN>S can be c(assiied on t1e basis o its st!ct!e and

invest.ent objectives)

+y &t!u4tu!e:

, O8e% e%ded ;u%d&) An open ended !nd is one t1at 1as !nitsavai(ab(e o sa(e and ep!c1ase at a(( t1e ti.es$ an investo can b!"

o edee. !nits o. t1e !nd itse( at a pice based on t1e net asset

va(!e8NA59pe !nit$NA5 pe !nit is obtained b" dividin, t1e a.o!nt o

t1e .a3et va(!e o t1e !ndJs assets b" t1e n!.be o !nits

o!tstandin,$ T1e n!.be o !nits o!tstandin, ,oes !p o do*n eve"

ti.e t1e !nd iss!es ne* !nits o ep!c1ases e


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15/85

- I%4'me = Debt O!ie%ted S4"eme&:

T1e ai. o Inco.e F!nds is to povide a e,!(a and stead" inco.e to

Investos$ S!c1 sc1e.es ,enea((" invest in iebt inst!.ents$ T1ese F!nds ae a(so aected b" t1e

(!ct!ations in s1ae pices in t1e Stoc3 Ma3ets$ 4o*eveD NA5s o s!c1

F!nds ae (i3e(" to be (ess vo(ati(e co.paed to p!e E!it" F!nds$

/ M'%ey M!$et& '! Li>uid Fu%d&:

T1ese F!nds ae a(so Inco.e F!nds and t1e" ai. at povidin, eas"

(i!idit"D pesevation o capita( and .odeate inco.e$ T1ese sc1e.es

1(


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17/85

T1ese ae t1e F!nds = Sc1e.es *1ic1 invest in t1e Sec!ities o on("

t1ose sectos o ind!sties as speciied in t1e Oe >oc!.ents$ e$,$

P1a.ace!tica(sD Sot*aeD Fast Movin, Cons!.e Goods 8FMCG9D

Peto(e!. Stoc3sD etc$ T1e et!ns in t1ese F!nds ae dependent on t1epeo.ance o t1e espective sectos = ind!sties$ 61i(e t1ese F!nds .a"

,ive 1i,1e et!nsD t1e" ae .oe is3" co.paed to divesiied !nds$

Investos .!st 3eep a *atc1 on t1e peo.ance o t1ose sectos$

RIS? HIERARCHY OF DIFFERENT MUTUAL FUNDS

>ieent .!t!a( !nd sc1e.es ae e


18/85

TYPES OF RETURNS THAT MF& OFFER TO INVESTORS

T1ee ae t1ee *a"sD *1ee t1e tota( et!ns povided b" .!t!a( !nds

can be enjo"ed b" investos)

Inco.e is eaned o. dividends on stoc3s and inteest on bonds$ A

!nd pa"s o!t nea(" a(( inco.e it eceives ove t1e "ea to !nd

o*nes in t1e o. o a distib!tion$

1:


19/85

I t1e !nd se((s sec!ities t1at 1ave inceased in piceD t1e !nd 1as

a capita( ,ain$ Most !nds a(so pass on t1ese ,ains to investos in a

distib!tion$

I !nd 1o(din,s incease in pice b!t ae not so(d b" t1e !nd

.ana,eD t1e !nds s1aes incease in pice$ Yo! can t1en se(( "o!

.!t!a( !nd s1aes o a poit$ F!nds *i(( a(so !s!a((" ,ive "o! a

c1oice eit1e to eceive a c1ec3 o distib!tions o to einvest t1e

eanin,s and ,et .oe s1aes$

MUTUAL FUNDS VS OTHER INVESTMENTS

It is co..on o investos to st!,,(e *it1 vaio!s invest.ent options$ So

its not s!pisin, t1at at an" point o ti.eD t1ei to do (ist !s!a((" 1as at

(east 1a(ado?en invest.ent options spannin, vaio!s assets$

As i investin, isnt eno!,1D t1e" a(so 1ave to .a3e e(aboate

aan,e.ents to tac3 t1ei invest.entsD ta3e evised decisions 8in case

invest.ents aent *o3in, o!t as e


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21/85

A44e&& t' !e&e!4" * Most investos *1o *is1 to ta3e !p

investin, as a !((ti.e activit" ae (i3e(" to 1it a oadb(oc3 in ,ettin,

!nesticted access to !a(it" eseac1$ Fo .oe ino.ation "o!

1ave to ead !p e


22/85

.!t!a( !nd is !s!a((" s!bject to t1e sa.e !ps and do*ns and is3s as t1e

stoc3 .a3et$

+%$& V=S Mutu Fu%d&

PARTICULARS +AN?S MUTUAL FUNDS

Ret!ns Lo*@ette

Ad.inistative e


23/85

F'! em8e: It is ass!.ed t1at bot1D t1e @an3 F> as *e(( as t1e FMP

8Fi appea a(on,side$

FMP @ , dy& 0=& Fied De8'&it&

>ividend

Option

8Individ!a(s9

>ividend

Option

8Copoates9

Fieposits

I%0e&tme%t Am'u%t Rs /00D000 Rs /00D000 Rs /00D000

P'&t E8e%&e I%di4ti0e Yied /0$2% /0$2% /0$2%

Mtu!ity Vue /02D%%% /02D%%% Rs /02D%%%

9i%BMtu!ity Vue * I%0e&tme%t

Am'u%t

2D%%% 2D%%% 2D%%%

T Rte /;$/' 22$'' 77$::

T Rs 7/+ Rs ;+2 Rs -':

P'&t T 9i%& Rs 2D27: Rs 2D0-7 Rs /D'-+

P'&t T %%ui&ed !etu!%& :$2: -$'2 '$:;

Inteest on @an3 F>s is !((" taividend >istib!tion Ta< 8o t1e dividend option9 o

t1e capita( ,ains ta< ate 8o t1e ,o*t1 option9$ T1e >istib!tion Ta< ate

/;$/' pe cent o t1e capita( ,ains ta< ate /0 pe cent ae (o*e t1an

t1e inco.e ta< ateD especia((" in t1e case o investos in t1e 1i,1e tas$

Ri&$ Retu!% T!de O;;:

23


24/85

T1e is3 et!n tadeo indicates t1at i investo is *i((in, to ta3e 1i,1e

is3 t1en coespondin,(" 1e can e


25/85

convenience and (i!idit"$ T1at doesnJt .ean .!t!a( !nd invest.ents is3

ee$ T1is is beca!se t1e .one" t1at is poo(ed in ae not invested on(" in

debts !nds *1ic1 ae (ess is3ie b!t ae a(so invested in t1e stoc3

.a3ets *1ic1 invo(ves a 1i,1e is3 b!t can e


26/85

t1an "o! canD !n(ess "o! 1ave ti.e to spend on eseac1in, t1e

co.panies "o! se(ect o "o! poto(io$ T1at is beca!se M!t!a( !nds 1ie

!((ti.eD 1i,1(eve( invest.ent poessiona(s$ F!nds can aod to do so as

t1e" .ana,e (a,e poo(s o .one"$ T1e .ana,es 1ave ea(ti.e accessto c!cia( .a3et ino.ation and ae ab(e to e


27/85

.ove "o! !nds easi(" o. one !nd to anot1e *it1in a .!t!a( !nd

a.i("$ T1is a((o*s "o! to easi(" eba(ance "o! poto(io to espond to

si,niicant !nd .ana,e.ent o econo.ic c1an,es$

2 Li>uidity: In openended sc1e.esD "o! can ,et "o! .one" bac3

po.pt(" at net asset va(!e e(ated pices o. t1e .!t!a( !nd itse($

3 T!%&8!e%4y:Re,!(ations o .!t!a( !nds 1ave .ade t1e ind!st"

ve" tanspaent$ Yo! can tac3 t1e invest.ents t1at 1ave been .ade on

"o! be1a( and t1e speciic invest.ents .ade b" t1e .!t!a( !nd sc1e.e

to see *1ee "o! .one" is ,oin,$ In addition to t1isD "o! ,et e,!(a

ino.ation on t1e va(!e o "o! invest.ent$

6 V!iety: T1ee is no s1ota,e o vaiet" *1en investin, in .!t!a(

!nds$ Yo! can ind a .!t!a( !nd t1at .atc1es j!st abo!t an" investin,

state," "o! se(ect$ T1ee ae !nds t1at oc!s on b(!ec1ip stoc3sD

tec1no(o," stoc3sD bonds o a .i< o stoc3s and bonds$ T1e ,eatest

c1a((en,e can be sotin, t1o!,1 t1e vaiet" and pic3in, t1e best o "o!$

RIS?S INVOLVED IN MUTUAL FUNDS:

, NO INSURANCE: * M!t!a( !ndsD a(t1o!,1 e,!(ated b" t1e

,oven.entD ae not ins!ed a,ainst (osses$ M!t!a( !nd et!ns ae

s!bject to .a3et is3s$ >espite t1e is3 ed!cin, divesiication beneits

povided b" t1e .!t!a( !ndsD (osses can occ!D and it is possib(e t1at one

.a" even (ose t1e entie invest.ent$

29


28/85

- DILUTION: M!t!a( !nds ,enea((" 1ave s!c1 s.a(( 1o(din,s o so

.an" dieent stoc3s t1at insane(" ,eat peo.ance b" a !nds top

1o(din,s sti(( doesnt .a3e .!c1 o a dieence in a .!t!a( !nds tota(

peo.ance$ I a sin,(e sec!it" 1e(d b" a .!t!a( !nd do!b(es in va(!eDt1e .!t!a( !nd itse( *i(( not do!b(e in va(!e beca!se t1at sec!it" is on("

one s.a(( pat o t1e !ndJs 1o(din,s$

. INEFFICIENCY OF CASH RESERVES: M!t!a( !nds !s!a(("

.aintain (a,e cas1 eseves as potection a,ainst a (a,e n!.be o

si.!(taneo!s *it1da*a(s$ A(t1o!,1 t1is povides investos *it1 (i!idit"D it

.eans t1at so.e o t1e !ndJs .one" is invested in cas1 instead o assetsD*1ic1 tends to (o*e t1e investoJs potentia( et!n$

/ LOSS OF CONTROL: T1e .ana,es o .!t!a( !nds .a3e a((

t1e decisions abo!t *1ic1 sec!ities to b!" and se(( and *1en to do so$

T1is .a3es diic!(t on t1e pat o t1e investo in .ana,in, 1is poto(io$

Fo e


29/85


30/85

!nds t1at see3 a co.bination o inco.e and ,o*t1$ And investos *it1

(on,te. 1oi?ons s1o!(d conside ,o*t1oiented !ndsD since t1ese

invest pi.ai(" in stoc3sD an asset c(ass *1ic1D *1en co.paed to inco.e

invest.entsD 1as ac1ieved t1e best 1istoica( et!ns ove ti.e$

Define your risk tolerance: 4o* .!c1 is3 can "o! to(eate I "o!

1ave a (o* to(eance o is3D "o! s1o!(d stic3 to t1e .ost consevative

c1oicesD s!c1 as .one" .a3et !nds$ I "o! 1ave a .odeate to(eance

o is3D "o! s1o!(d see3 to b(end consevative and a,,essive !nds o

(oo3 o one !nd *it1 a b(ended appoac1D s!c1 as a ,o*t1 and inco.e

!nd o a ba(anced !nd$ I "o! ae co.otab(e *it1 a ai a.o!nt o is3D

"o! can c1oose o. a.on, t1e .oe a,,essive .!t!a( !nds (i3e

a,,essive ,o*t1 !nds and secto !nds$

Define how mutual funds will complement your other

investments: Ma3e an assess.ent o "o! tota( inancia( pict!e$ T1e

,oa( is to avoid d!p(ication o oveconcentation o assets$ >o "o! 1ave

savin,s acco!ntsD etie.ent p(ans o individ!a( stoc3s and bonds

Ins!ance o inco.epod!cin, popet" As "o! can easi(" seeD .!t!a(

!nds .a" 1ave a o(e to p(a" in "o! ovea(( invest.ent poto(ioD b!t t1e"

s1o!(d not be vie*ed as standa(one assets$

Evaluate the fund's portfolio: Sevice (eve(s o !nd 1o!ses va"$

So.e !nd 1o!ses e,!(a(" !pdate investos on detai(s (i3e stoc3

a((ocationD sectoa( a((ocationD asset a((ocationD Poto(io T!nove Ratio

and E


31/85


32/85

4o* do "o! .eas!e is3 o vo(ati(it" Meas!in, a !nds vo(ati(it" can be

dete.ined b" e


33/85


34/85

+t+a, F+n& 8IB=I8*< Mutual und

3rd loor, &change 8la#a, 0-wing

* B% 0uilding, 0andra @urla =omple&,

0andra-

Mumbai

Tel.-22)21111

2sset anaement Compan* 8IB=I8*< 8B0 *sset Management

=ompany 8vt.


35/85

-1(.43 -'.(1 -(3.91 -).:( -).2 11.: 2(.'2

PORTFOLIO

3(

ean 1.2'

%tan&ar&

Deviation

2.43

%harpe ).34


36/85

%tate 0an! of India

";= 0an!


37/85

Se4t'! A'4ti'% ()

Aut' # Aut' %4ii!ie&

+%$& /0$;%

Ceme%t 7$%%

C'm8ute!& * S';t1!e #Edu4ti'% %$+:

C'%&ume! Du!be& 7$7-

Cu!!e%t A&&et& :$/7

Ee4t!i4& # Ee4t!i4E>ui8me%t& 7$-2

E%5i%ee!i%5 # I%du&t!iM4"i%e!y %$%/

Fi%%4e /0$0-

H'u&i%5 # C'%&t!u4ti'% /$+:

Met& 7$+Mi%i%5 # Mi%e!& /$'2

Mi&4e%e'u& -$'2

Oi # 9& Pet!'eum #Re;i%e!y -$07

P8e! 0$-;

Pe!&'% C!e /$:2

P"!m4euti4& 0$0/

P&ti4 2$0-

P'1e! 9e%e!ti'%T!%&mi&&i'% # E>ui8 2$'2

S"i88i%5 /$;;

Stee -$:7Tee4'm 2$'2

Tetie& 2$;'

A&&et A'4ti'% ()

E>uity Debt C&" # E>ui0e%t

39

Nift* Miscellaneous B* '.:) B* 12.99 -3.''

Re,iance In&+stries

0t&

/il D 6as,

8etroleum D

efinery

13.43 '.1' :),13' 11.)2 -3:.2'

in&a, %tee, an&

Po@er 0t&8%teel 9.:9 3.'2 11',92: 4.)4 -'.1'

3o,tas 0t&=onsumer

;urables11.93 3.3: 1,221,9:3 :.44 -'.:3

ICICI


38/85


39/85


40/85

poto(io in (ine*it1 .a3et (eve(s$

At 1i,1e .a3et(eve(sD a (a,epotion o itspoto(io is1ed,ed$ Adeensiveinvest.entstate," t1at doesnot a((o* t1einvesto to,eneate et!nsbe"ond a point$

A(so in te.s o

stoc3 pic3sD t1is!nd is si.i(a toRe(iance8RELI$@OD ne*s95isionD apedo.inant("(a,e cap e!it"!nd$

S@I @(!ec1ip E!it")>ivesiied

20an0' 2-$' A (a,e cap !nd!ite si.i(a toMa,n!. E!it" inte.s o stoc3pic3s$ No dieento. t1e scoes oot1e (a,e cap!nds$

+$'

Ma,n!.M!(ticap

E!it")>ivesiied

/'Sep0% 2/$0 As t1e na.es!,,estsD t1e !ndcan invest in bot1

(a,e caps and.id caps$ Si.i(ato Ma,n!.M!(tip(ie P(!s inte.s o stoc3pic3s$

+$-

4S@C E!it") 2+an0' /'$0 A t1e.atic !nd +$2

')
http://in.finance.yahoo.com/quote?s=RELI.BOhttp://in.biz.yahoo.com/n/bo/r/reli.htmlhttp://in.finance.yahoo.com/quote?s=RELI.BOhttp://in.biz.yahoo.com/n/bo/r/reli.html


41/85

Advanta,eIndia

>ivesiied t1at *i(( ta,et ae* t1e.es andinvest in t1e.a,,essive("$Event!a(("D .ostt1e.atic !ndsend !p investin,in .oe t1an onet1e.e beca!set1e" 1ave s!c1boad .andatesDso t1e NFO didnot ea((" oean"t1in, !ni!e$

P!ICICIInast!ct!e E!it")Inast!ct!e /'A!,0% /;$2 6as (a!nc1ed totap t1einast!ct!et1e.ea,,essive("$4o*eveD one (oo3at its boadDinc(!siveDinvest.ent.andate and one*o!(d t1in3 it is adivesiied e!it"!nd$

2-$-

4>FC Lon,Te. E!it"

E!it")>ivesiied

2+an0' /7$0 A %Y c(oseended !nd t1atcan invest acoss.a3et caps$ It*as c(oseendedsince t1e !nd*anted to ta3e

(on,te. bets*1ic1 is diic!(t inan openendedst!ct!e$ Givent1e ee(o*in,invest.ent st"(eand pocess

-$-

'1


42/85

diven invest.entappoac1D *eeco..ended t1is!nd to Pesona(nc(ients$

Fan3(inS.a((eCo.panies

E!it") MidCaps

/;>ec0% /2$0 T1e !nd *as(a!nc1ed to ta,ets.a(( capsD a istin t1e ind!st"$One o t1e e*innovative !ndso its 3ind and oneo t1e e* NFOseco..ended b"

Pesona(nse(ective(" to itsc(ients$

/$/

Stanc1atC(assicE!it"

E!it")>ivesiied

/;!(0% //$+ T1e ist e!it"!nd (a!nc1ed b"Stanc1at M!t!a(F!nd an"*1ee int1e *o(d$ @!tinvestos co!(dnot cae (essD t1e"

too3 to t1e !nd(i3e it *as avetean in t1estoc3 .a3ets$

Ate (a!nc1in, astin, o e!it"NFOsD t1e !nd1o!se ea(i?edt1at .!t!a( !nd isnot coe b!siness

o it ,(oba(("$

/2$;

Ma,n!.Co..a

E!it")>ivesiied

2%!(0% :$% 6as initia((" p!((ed!p b" SE@Ibeca!se it ,avet1e i.pessiont1at it *o!(d beinvestin, in

-$;

'2


43/85

co..oditiesK t1e!nd *as on("ta,etin,co..odit" stoc3s$EFC Lon, Te. E!it" 8a

%Y c(oseended e!it" !nd investin, in co.panies acoss .a3et

capita(i?ations9$ @ein, (a!nc1ed b" *e((.ana,ed !nd 1o!sesD *it1 a (oc3

in a((o*in, t1e !nd .ana,e to invest o t1e (on,te. in oppot!nities

'3


44/85

t1at *ee bein, i,noed b" .ost !nd 1o!ses 8(i3e s.a(( caps o instance9

*ee so.e o t1e co.pe((in, easons o eco..endin, s!c1 NFOs$

In addition to t1e NFOs se(ective(" .entioned in t1e tab(eD t1ee ae scoes

o NFOs t1at 1ave added (itt(e va(!e to t1e investo$ I an"t1in,D t1e" 1ave

added to t1e con!sionD beca!se t1e t1o!,1t !ppe.ost on t1e investos

.ind is NFO A is so si.i(a to F!nd @ o. t1e sa.e !nd 1o!seD *1at

va(!e *i(( NFO A oe t1at is not a(ead" bein, oeed b" F!nd @ And it is

appaent o. (oo3in, at t1e NFOs t1at .ost 1avent ac1ieved t1e (eve( o

peo.ance t1at *as eSP ML Mico Cap F!nd9D t1en a,ain t1ee is a case o eva(!atin, it

as a pobab(e invest.ent$ @ain, t1ese e


45/85

"eas o an e!it"oiented !nd9 beoe .eitin, inc(!sion in t1e investos

poto(io$

OLD (EGISTIN9) FUNDS V& NEW FUND OFFERS

6it1 t1e e!it" .a3ets on ie it *as boo. ti.e o a(( e!it" !nds$ T1is

*as evident as t1e .!t!a( !nds stated to co.e !p *it1 .an" ne*

sc1e.es and *oo t1e investos to invest in t1e .a3ets t1o!,1 t1e MF

o!te$ Since t1e be,innin, o 200%D 2+ >ivesiied E!it" sc1e.es 1ave

conc(!ded t1ei NFOs$ To,et1e t1e" 1ave co((ected ove Rs$/0D000

coes$ T1e co..on investo see.s e


46/85

dep(o" a(( t1e !nds in t1e .a3et and t1e cas1 co.ponent does not "ie(d

et!ns as 1i,1 *1en co.paed to t1e stoc3 .a3ets$ 4o*eveD sc1e.es

*1ic1 1ave co.p(eted sa" ove ' .ont1s ae bette o as t1e !nd

.ana,e 1as a(ead" invested !((" in t1e .a3et and t1e investo eapst1e beneit o t1e boo. conditions$ T1e avea,e et!n ,eneated b"

sc1e.es *1ic1 1ave co.p(eted si< .ont1s b!t (ess t1an one "ea is

7/$;D *1ic1 is !ite si.i(a to t1e o(dies 8!nds 1avin, co.p(eted 7

"eas9 *1ic1 de(iveed an avea,e 7/$+ et!n$

T1e investo needs to act j!dicio!s(" to ta3e .a


47/85


48/85

Can E.e,in, E!ities Go*t1

2$;77:S@I Ma,n!. SectoU.be((a Conta Go*t1

/7$/72'

PRINCIPAL Foc!ssedAdvanta,e F!nd

Go*t1

2$7:%-S!ndaa. Se(ectMidcap Go*t1

/0$2/+-

WAYS TO INVEST IN MUTUAL FUNDS

4ave "o! eve ead t1e stat!to" *anin, on eve" ci,aette pac3)

Ci,aette S.o3in, Is Inj!io!s To 4ea(t1 In t1e sa.e veinD eve" sin,(e

.!t!a( !nd oe doc!.ent *i(( ca" t1e caveat) M!t!a( F!nds Ae S!bject

To Ma3et Ris3s$ !st (i3e adent ci,aette s.o3es *1o c1ose to i,noe

t1is *anin,D investos too *i(( (oo3 t1e ot1e *a"$

':


49/85

EVER WONDERED WHAT IT MEANT

Ma3et is3 ees to t1e possibi(it" t1at "o! invest.ent in a .!t!a( !nd

can ,o do*n in va(!e ove a peiod o ti.e$ T1ats i,1t$ Undestand t1at

"o! can ean a ne,ative et!n b" investin, in a .!t!a( !nd$ It is not

a(*a"s ,eat 8positive9 et!ns$ Investos tend to oc!s on(" on et!ns

*1en investin, in .!t!a( !nds$ I *i(( eain o. !otin, et!ns 1ee as I

ston,(" be(ieve t1e" s3e* t1e investos peception *it1o!t ,ivin, d!e

espect to is3$ And I a. conident .ost o !s ae e


50/85

o is3 adj!sted et!ns 8*1en "o! ta3e is3 into acco!nt to eva(!ate

et!ns9$

T"e!e !e t1' b!'d 1y& y'u 4% i%0e&t i% mutu ;u%d:

An o!ti,1t pa".ent o

A S"ste.atic Invest.ent P(an$

A SIP is not1in, b!t a peiodic invest.ent t1at 1as to be done$ T1e a.o!nt

sta"s i


51/85

Se(assess.ent o oneJs needsK e


52/85

A co..on investo is (i.ited in t1e de,ee o is3 t1at 1e is *i((in, to ta3e$ It is

t1!s o 3e" i.potance t1at t1ee is t1o!,1t ,iven to t1e pocess o

invest.ent and to t1e ti.e 1oi?on o t1e intended invest.ent$ One s1o!(d

abstain o. spec!(atin, *1ic1 in ot1e *ods *o!(d .ean ,ettin, o!t o one!nd and investin, in anot1e *it1 t1e intention o .a3in, !ic3 .one"$ One

*o!(d do *e(( to e.e.be t1at nobod" can peect(" ti.e t1e .a3et so

sta"in, invested is t1e best option !n(ess t1ee ae co.pe((in, easons to eivesiication

even in an" patic!(a asset c(ass 8s!c1 as e!it"D debt9 is ,ood$ Not a(( !nd

.ana,es 1ave t1e sa.e ac!.en o !nd .ana,e.ent and *it1 identiication

o t1e best .an bein, a to!,1 tas3D it is ,ood to p(ace .one" in t1e 1ands o

sevea( !nd .ana,es$ T1is .i,1t ed!ce t1e .a


53/85

oeed b" a(( !nds 1e(ps in bein, s"ste.atic$ A(( t1at one needs to do is to

,ive postdated c1e!es to t1e !nd and t1eeate one *i(( not be 1aied

(ate$ T1e A!to.atic invest.ent P(ans oeed b" so.e !nds ,oes a step

!t1eD as t1e a.o!nt can be diect("=e(ectonica((" tanseed o. t1eacco!nt o t1e investo$

6 D' y'u! "'me1'!$:

It is i.potant o a(( investos to eseac1 t1e aven!es avai(ab(e to t1e.

iespective o t1e investo cate,o" t1e" be(on, to$ T1is is i.potant

beca!se an ino.ed investo is in a bette decision to .a3e i,1t

decisions$ 4avin, identiied t1e is3s associated *it1 t1e invest.ent is

i.potant and so one s1o!(d t" to 3no* a(( aspects associated *it1 it$

As3in, t1e inte.ediaies is one o t1e *a"s to ta3e cae o t1e

pob(e.$

K Fi%d t"e !i5"t ;u%d&:

Findin, !nds t1at do not c1a,e .!c1 ees is o i.potanceD as t1e ee

c1a,ed !(ti.ate(" ,oes o. t1e poc3et o t1e investo$ T1is is even .oe

i.potant o debt !nds as t1e et!ns o. t1ese !nds ae not .!c1$

F!nds t1at c1a,e .oe *i(( ed!ce t1e "ie(d to t1e investo$ Findin, t1e

i,1t !nds is i.potant and one s1o!(d a(so !se t1ese !nds o taRs and G>Rs and oei,nsec!ities

02%

>ebt and .one" .a3et inst!.ents 0/0

>SP ML SMC 1as a e(ative(" stai,1to*ad invest.ent state,"$ Un(i3eot1e AMCs t1at 1ave da*n !p e(aboate asset a((ocation pattes b"deinin, t1e .a3et capita(i?ation in te.s o !peesD >SP ML SMCpoesses to si.p(" ta,et co.panies t1at ae not pat o t1e top /00co.panies b" .a3et capita(i?ation$

It 1as a(so .ade povision o investin, a potion o its net assets8.aSP ML SLC *i(( be s!bject to t1e is3s t1at 1ave co.e to bec(ose(" associated *it1 .id cap stoc3s above avea,e vo(ati(it"D actos(eadin, to *1ic1 *e 1ave o!t(ined ea(ie$ 4o*eveD ove t1e (on, te.D at(east % "easD t1e vo(ati(it" co!(d ,et ioned o!t b" a poto(io o cae!(("se(ected .id cap co.panies$ 6e 1ave ta3en % "eas 8.ini.!.9 as anidea( ti.e a.e o investin, in >SP ML SLCD beca!se .id caps t"pica(("ta3e (on,e t1an (a,e caps to !n(oc3 t1ei potentia($

RESEARCH METHODOLO9Y

T1e eseac1 is bot1 !a(itative and !antitative in its s!ppot$ T1e

!a(itative appoac1 inc(!des bot1D desciptive and ind!ctive o.s o

eseac1D *1i(e as in case o !antitative appoac1D an e


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t1e espondents in a .!t!a( !nd pod!ct$ Facto ana("sis identiies

co..on di.ensions o actos o. t1e obseved vaiab(es t1at 1ave a

1i,1 coe(ation *it1 t1e obseved and see.in,(" !ne(ated vaiab(es b!t

no coe(ation a.on, t1e actos$ Pincipa( Co.ponent Ana("sis is t1eco..on(" !sed .et1od o ,o!pin, t1e vaiab(es !nde e* !ne(ated

actos$ 5aiab(es *it1 a acto (oadin, o 1i,1e t1an $% ae ,o!ped !nde

a acto$ A acto (oadin, is t1e coe(ation bet*een t1e oi,ina( vaiab(e

*it1 t1e speciied acto and t1e 3e" to !ndestandin, t1e nat!e o t1at

patic!(a acto$ 61en deve(opin, ne* pod!cts .a3etes *o!(d (i3e to

be ab(e to j!d,e t1e cons!.eJs esponse to t1ei oe beoe it is

intod!ced$ One *a" to dea( *it1 t1e sit!ation is to peo. concept tests$

4ee t1e c!sto.e is pesented *it1 a desciption o a ne* pod!ct and is

as3ed abo!t t1e (i3e(i1ood o p!c1ase$ T1e vaio!s attib!tes o a .!t!a(

!nd pod!ct ae bo3en do*n into (eve(s$

Once t1e !ti(ities o t1e attib!te (eve(s ae 3no*nD it is possib(e to speci" a

ne* pod!ct t1at s1o!(d 1ave a .a


71/85

PRIMARY DATA) T1e pi.a" so!ce o data invo(ves oa( intevie*s

and !estionnaies$ T1ese so!ces ae inadvetent(" e


72/85

ue&ti'% -) What is your occupation?

ue&ti'% .) Do you invest in Mutual Funds?

Intepetation) T1e .ajo pat o t1e sa.p(e ta3en 1as invested in t1e

M!t!a( F!nds$ T1e de.and o t1e .!t!a( !nds 1ave inceased in t1e

past e* "eas *it1 .an" Foei,n p(a"es entein, in t1e Indian .a3etD

Fide(it"D Fan3(in Te.p(etonD >SP Me"(( L"nc1 to na.e a e*$ Sti(( t1ee

ae e* *1o ae not investin, in MF$

92


73/85


74/85


75/85


76/85

ue&ti'% 6) 4o* do "o! t1in3 MidCap invest.ent so(ve t1e pob(e. oLa,ecap oientation in t1e .!t!a( !nd .a3et

Intepetation) T1e .ajoit" vie* is t1at a c(ea dieentiation bet*een t1e

divesiied e!it" !nds s1o!(d be .aintained$ T1e Pincipa( E!it" F!ndas a (a,e cap !nd s1o!(d be etained to cate to s!c1 investos *it1

Pincipa( Go*t1 F!nd investin, in a b(end o .id and (a,e caps$ T1e

b(end state,"D e(t t1e investosD *i(( *o3 *e(( o Pincipa( Go*t1 F!nd

and its peo.ance *i(( be on pa *it1 t1at o .an" .id cap oc!sed

!nds$

ue&ti'% K) 61ic1 Sectos O An" Patic!(a Secto Yo! Loo3 As Ma3etPeo.e

Intepetation) Moe t1an+- pecent o t1e investos *ee o t1e opinion

t1at it is t1e Ino.ation Tec1no(o," *1ic1 is t1e .ain divin, oce be1ind

t1e pesent .a3et boo.$ T1e" e(t t1at IT co.bined b" En,ineein, and

Te(eco. can ta3e t1e Indian invest.ent scenaio to a ne* 1i,1$

9


77/85


78/85

ue&ti'% ,:4o* >o Yo! Peceive T1e Pesent Ma3et Condition FoInvest.ent

Intepetation) 6it1 e,ad to t1is !estionD it can be stated t1at t1e

pesent ise in Sense< 1as .ade eve"bod" a*ae abo!t t1e pesent

invest.ent scenaio$ A(.ost +- o t1e espondents ae o t1e opinion

t1at t1e pesent econo.ic .a3et condition is eit1e cond!cive o ve"

cond!cive o invest.ent$ A(.ost :0 o t1e espondents be(on,in, to t1e

!ppe .idd(e c(ass ee( t1at t1e pesent .a3et condition is ve" cond!cive

o invest.ent$ /+ o t1e espondents s1ae t1e opinion t1at t1e pesent

.a3et condition is not cond!cive o invest.entD *1eeas t1e est % said

in te.s o can not sa"= do not 3no*$

9:


79/85

ue&ti'% ,,:I "o! ,et a c1ance to invest in a NFOD t1en *1at 3ind oM!t!a( F!nd *o!(d "o! pee

Intepetation) T1ee ae dieent t"pes o .!t!a( !nds avai(ab(e in t1e

.a3et accodin, to t1e needs o t1e investos$ T1ee ae E!it" !ndsD

Inco.e !ndsD @a(anced F!ndsD etc$ T1e 1i,1est so!,1t ate !nd is t1e

Inco.e !nd *1ic1 oes a e,!(a inco.e t1o!,1 invest.ents in t1e

Govt$ @onds$ T1e is3 is a(so (o* in t1is$ It is o((o*ed b" t1e E!it" F!nd*1ic1 oes 1i,1e et!ns b!t it is is3ie a(so$ So.e peop(e *o!(d (i3e to

Ta< Save Sc1e.es$ T1is povides so.e e


80/85


81/85


82/85

REFERENCES

, ***$.!t!a(!ndsindia$co.

- ***$a.iindia$co.

. 1ttp)==***$.one"conto($co.=

/ 1ttp)==ibn(ive$in$co.=ne*s

2 1ttp)==***$,oo,(e$co$in=

3 1ttp)==***$pesona(n$co.=

A%%eu!e I ue&ti'%%i!e

, W"t 5e 5!'u8 d' y'u be'%5 t'

a$ 20 70 "s

b$ 70 ;0 "s

c$ ;0 '0 "s

d$ '0 "s o above

- W"t i& y'u! '44u8ti'%

a$ O*n b!siness=Se( E.p(o"ed

b$ Sevice=Sa(aied

c$ Retied

d$ An" ot1eD p(ease speci"$$$$$$$

. D' y'u i%0e&t i% mutu ;u%d&

a$ Yes

b$ No

:2
http://www.mutualfundsindia.com/http://www.amfiindia.com/http://www.moneycontrol.com/http://ibnlive.in.com/news/why-mutual-funds-are-better-than-fixed-deposits/45407-16.htmlhttp://www.google.co.in/http://www.personalfn.com/http://www.mutualfundsindia.com/http://www.amfiindia.com/http://www.moneycontrol.com/http://ibnlive.in.com/news/why-mutual-funds-are-better-than-fixed-deposits/45407-16.htmlhttp://www.google.co.in/http://www.personalfn.com/


83/85

I "esD t1en contin!e ans*ein,D ot1e*ise ,o to !estion no$-$

/ NFO& !e >uite tt!4ti0e t"% t"e 'd mutu ;u%d& W"t i& y'u!

'8i%i'%

a$ A,eeb$ >isa,ee

c$ >o not 3no*= Cannot sa"

2 W"t !e t"e m


84/85

a$ IT

b$ @an3in,

c$ En,ineein, and Inast!ct!e

d$ Te(eco.e$ Po*e

$ An" ot1eD p(ease speci"$$$$$$$$$$

A& Y'u T"i%$ Ab'ut I%0e&tme%t& W"t O8ti'% C'me& Fi!&t I% Y'u!

Mi%d

a$ E!itiesD >ebent!es and @onds

b$ M!t!a( !nds

c$ Co..odities

d$ @an3 Fieposits

e$ An" ot1eD p(ease speci" $$$$$$$$$$$$$$$$$$$$

, H'1 D' Y'u Pe!4ei0e T"e P!e&e%t M!$et C'%diti'% F'!

I%0e&tme%t

a$ 5e" Cond!cive

b$ Cond!cive

c$ Not cond!cive at a((

d$ Can not sa"= do not 3no*

,, I; y'u 5et 4"%4e t' i%0e&t i% NFO t"e% 1"t $i%d '; Mutu

Fu%d 1'ud y'u 8!e;e! (Ti4$ Ree0%t)

a$ E!it" oiented !nd

b$ Inco.e !nd

c$ >ivesiied !nd

d$ Ta< save !nd

:'


85/85

e$ @a(anced !nd

$ Go*t1 !nd

,$ Secto speciic !nd

1$ An" ot1eD p(ease speci"$$$$$$$$$$

Asiignment on Sapm

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