Funds Analysis With Respect to Hdfc Mutual Fund

8/9/2019 Funds Analysis With Respect to Hdfc Mutual Fund

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CHAPTER-1

INTRODUCTION OF THE STUDY

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Background of the study:

Mutual fund industry in India attaining maturity

Even though the capital market attracts people there are several problems associated with it.

While investing directly in to capital market one to be careful to judge the valuation of the stock

and understand the complexities involved in the stock price fluctuations. So, a person with

moderate knowledge of capital market generally prefers to invest in mutual funds.

In recent times mutual fund industry in India is growing rapidly and is undergoing tremendous

changes. The Indian mutual fund industry has witnessed several structural and regulatory reforms.

Different Investment Avenue are available to investors. Mutual fund also offers good investment

opportunities to the investors. Like all investment, they also carry certain risks. The investors

should compare the risks and expected yields after adjustment of tax on various instruments while

taking investment decisions. The investors may seek advice from experts and consultants including

agents and distributors of mutual funds schemes while investment decisions.

An objective to make the investors aware of functioning of mutual funds, an attempt has been

made to provide information in question-answers format which may help the investors in taking

investment decisions.

Meaning of mutual fund:

Mutual fund is a mechanism for pooling the resources by issuing units to the investors andinvesting funds in securities in accordance with objectives as disclosed in offer document.

Investment in securities are spread across wide cross section of industries and sectors and thus the

risk is reduced .diversification reduces the risk because all stocks may not move in the same

direction in the same proportion at the same time. Mutual fund issues units to the investors in

accordance with quantity of money invested by them. Investors of mutual funds are known as unit

holders.

The profits /loss are shared by the investors in proportion to their investments. The mutual fund

normally comes out with a number of schemes with different investment objectives which are

launched from time to time

Reference: Icfai university press march-2007, mutual funds book Prasanna Chandra (author)

2nd edition Mc graw-hills publications.

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.A mutual fund is required to be registered with securities and exchange board of India (SEBI)

which regulates securities markets before it can collect funds from the pubic.

History of mutual funds:

Unit trust of India was the first mutual fund set up in India in the year 1963. in early 1990s,

government allowed public sector banks and institutions to set up mutual funds.

In the year 1992, securities and exchange board of India (SEBI) act was passed. The objective of

SEBI are to protect the interest of investors in securities and to promote the development of

regulate the securities market.

As far mutual funds are concerned, SEBI formulates policies and regulates the mutual fund s to

protect the interest of the investors. SEBI notified Regulations for the mutual funds in 1993.

Thereafter, mutual funds sponsored by private sector entities were allowed to enter in to capital

market. The regulations were fully revised in 1996 and have been amended thereafter from time to

time. SEBI has also guide lines to the mutual funds time to time to protect the interests of

investors.

All mutual funds whether promoted by public sector or private sector entities including

Those promoted by foreign entities are governed by the same set of regulations. There is no

distinction in regulatory requirements for these mutual funds and all are subject to monitoring and

inspections by the mutual funds sponsored by these entities are of similar type. It may be

mentioned here that unit trust of India (UTI) is not registered with SEBI.

Mutual fund set up:

A mutual fund set up in the form of a trust, which has sponsor, trustees, asset Management

Company (AMC) and custodian. The trust is established by a sponsor or more than one sponsor

who is like promoter of a company. The trustees of the mutual fund hold its property for the

benefit of the unit holders. Asset management company (AMC) approved by SEBI manages the

funds by making investments in various types of securities .custodian, who is registered with

SEBI, holds the securities of various schemes of fund in its custody. The trustees are vested with

the general power of supertendence and direction over AMC they monitor the performance and

compliance of SEBI regulation by the mutual fund.

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SEBI regulations require that at least two third of the directors of trustee company or board of

trustees may be independent i.e. they should not be independent. All mutual funds are required to

be registered with SEBI before they launch any scheme. How ever, unit trust of India (UTI) is not

registered with SEBI

What is net asset value?

A mutual fund's net asset value, or NAV, is the value of its holdings expressed in per share

amounts. NAV is typically calculated daily after markets have closed. For funds

Market value of the funds investments+receivables+accrued income liabilities D.

expenses

NAV=

Number of shares or units out standing

Investing in securities that are not traded in public markets, the fund manager is responsible for

estimating a value for such securities when calculating the fund's NAV.

NET ASSET VALUE (NAV) OF A SCHEME:

The performance of a particular scheme of a mutual fund is denoted by net asset value (NAV).

Mutual fund invests the money collected from the investors in securities markets. In simple words,

net asset value is the market value of the securities held by the scheme. Since market value of

securities changes every day, NAV of a scheme also varies on day to day to day basis. The net

asset value per unit is the market value of securities of a scheme divided by the total number of

units of the scheme on any particular date.

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(Chart-1.1)

The flow chart below describes broadly the working of a mutual fund:

DIFFERENT TYPES OF MUTUAL FUND SCHEMES

A Mutual Fund Schemes Can is classified into open ended and closed ended scheme depending on

its maturity period.

Open ended fund/scheme

An open-ended fund is one that is available for subscription and repurchase on a continuous basis.

These schemes do not have a fixed maturity period. Investors can convenient buy and sell units at

net asset value (NAV) related prices which are declared on a daily basis. The key feature of open

ended scheme is liquidity.

Closed ended fund/ scheme

A closed ended fund has a stipulated maturity period like 5-7 years. The fund is open forsubscription only during a specified period at the time of launch of the scheme. Investors can

invest in the scheme at the time of initial public issue and thereafter they can buy or sell the units

of the scheme on the stock exchanges where the units are listed. In order to provide an exit route to

the investors, some close-ended funds give an option of selling back the units to the mutual fund

through periodic repurchase at NAV related prices. SEBI regulations stipulate that at least one of

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the two exit routes is provided to the investors i.e. either repurchase facility or through listing on

stock exchanges. These mutual fund schemes disclose NAV generally on weekly basis.

Investment objectives from the schemes:

A scheme can also be classified as growth funds, income funds or balanced funds considering its

investment objective. Such schemes may be open-ended or close-ended schemes as described

earlier. Such schemes may be classified mainly as follows:

Growth /equity oriented scheme

The aim of the income funds is to provide capital appreciation over the medium to long-term., such

schemes normally invest a major part of their corpus in equities. This fund has comparatively high

risks. These schemes provide different options to the investors like dividend option, capital

appreciation and the investors may choose an option depending on their preferences. The investors

must indicate the option in the application form. Growth schemes are good for investors having a

long term outlook seeking appreciation over a period of time.

BALANCED FUND

The aim of balanced funds is to provide both growth and regular income as such schemes invest

both in equities and fixed income securities in the proportion indicated in their offer documents.

These are appropriate for investors looking for moderate growth. They

(Chart-1.2)

The Risk-Return Trade-off

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(Chart-1.3)

Generally invest 40- 60% in equity and debt instruments. These funds are also affected because of

fluctuations in share prices in the stock markets. However, NAVs of funds are likely to be less

volatile compared to pure equity funds.

MONEY MARKET /LIQUID FUND

These funds are also income funds and their aim is to provide easy liquidity, preservation of

capital and moderate income. These schemes invest exclusively in safer short-term instruments

such as treasury bills, certificates of deposit, commercial paper and inter- bank call money,

government securities, etc. returns on these schemes fluctuate much less compared to other funds.

These funds are appropriate for corporate and individual investors as a means to park their surplus

funds for short periods.

Gilt fund

These funds invest exclusively in government securities. Government securities have no default

risk. NAVs of these schemes also fluctuate due to change in interest rate and other economic

factors as in the case with income /debt oriented schemes.

INDEX FUNDS

Index funds replicate the portfolio of a particular index such as BSE sensitive index, s&p NSE 50

INDEX (Nifty) ,etc these schemes invest in the securities in the same weight age comprising of an

index. NAV of such schemes would rise or fall in index though not exactly by the same percentage

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due to some factors known as tracking error in technical terms .necessary disclosures in this

regard are made in the offer document of the mutual fund scheme.

There are also exchange traded index funds launched by the mutual funds by the mutual funds

which are traded on the stock exchanges.

These are the funds which invest in the securities of only those sectors or industries as specified in

the offer documents.eg pharmaceuticals, software, fast moving consumer goods

(FMCG),petroleum stocks, etc. the returns in these funds are dependent on the performance of the

respective sectors .while these funds may give higher returns, they are more risky compared to

diversified funds .

TAX SAVING SCHEMES

These schemes offer tax rebates to the investors under the income tax act 1961 as the government

offers tax incentives for investment in specified avenues e.g. equity linked Saving schemes (ELSS)

pension schemes launched by the mutual funds also offer tax benefits. These schemes are growth

oriented and invest pre dominantly in equities .Their growth opportunities and risk associated are

like any equity-oriented scheme.

ORGANISATION OF A MUTUAL FUND:

There are many entities involved and the diagram below illustrates the

organizational set up of a mutual fund:

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SALE / REPURCHASE /REDUMPTION PRICE

The price or NAV a unit holder is charged while investing in an open-ended scheme is called sales

price. It may include sales load, if applicable.

Repurchase or redemption price is the price or NAV an open-ended scheme purchases or redeems

its units from the unit holders. It may be include exit load. if applicable.

ASSURED RETURN SCHEME

Assured return schemes are those schemes that assure a specific return to the unit holders

irrespective of performance of the scheme.

A scheme cannot promise return unless such returns are fully guaranteed by the sponsor or AMC

and this is required to be disclosed in the offer document.

Investors should carefully read the offer document whether return is assured for the entire period

of the scheme or only for a certain period. Some schemes assure returns one year at a time and

they review and change it at beginning of the next year.

Can a mutual fund change the asset allocation while deploying funds of investors?

In the market trends, any prudent fund managers can change the asset allocation i.e. he can invest

higher or lower percentage of the fund in equity or debt instruments compared to what is disclosed

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in the offer document. It can be done on a short term basis on defensive consideration i.e. to

protect the NAV. Hence the fund managers are allowed certain flexibility in altering the asset

allocation considering the interest of the investors. In case the mutual fund wants to change the

asset allocation on a permanent basis, they are required to inform the unit holders and giving them

option to exit the scheme at prevailing NAV without any load.

How to invest in a scheme of mutual funds

Mutual fund normally comes out with an advertisement in newspapers publishing

the date of launch of the new schemes. Investors can also contact the agents and distributors of

mutual funds who are spread all over the country for necessary information and application forms

can be deposited with mutual funds through the agents and distributors who provide such services.

Now a day, the post offices and banks also distribute the units of mutual funds. However, the

investors may please note that the mutual funds schemes being marketed by banks and post offices

should not be taken as their own schemes and no assurance of returns is given by them.

Can non- resident Indians (NRIs) invest in mutual funds?

Yes, non resident Indians can also invest in mutual funds. Necessary details in this respect are

given in the offer document of the schemes.

How much one should can invest in debt or equity oriented schemes

An investor should take into his risk taking capacity, age factor, financial position etc. as already

mentioned, the schemes invest in different types of securities as in the offer documents and offer

different returns and risks. Investors may also consult financial experts before taking decisions.

Agents and distributors may also help in this regard.

How to fill up the application form of a mutual fund scheme

An investor must mention clearly his name, address, number of units applied for and other such

information as required in the application form. He must give his bank account number so as to

void any fraudulent encashment of any cheque /draft

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Issued by the mutual fund at a later for the purpose of dividend or repurchase. Any changes in the

address, bank account number, etc at a later date should be informed to the mutual fund

immediately.

What should an investor look in to officer document?

Which contains for useful information, is required to be the prospective investor by the mutual

fund? The application form for subscription to a scheme is an integral part of the offer document.

SEBI has prescribed minimum disclosures in the offer document. An investor, before investing in

a scheme, should carefully read the offer document. due care must be given to portions relating to

main features of the scheme, risk factors, initial issue expenses and recurring expenses to be

charged to the scheme, entry or exit loads, sponsors track record, educational qualification and

experience of key personnel including fund managers, performance of other schemes launched by

the mutual fund in the past, pending litigation and penalties imposed etc.

When will be the investor can get certificate after investing in a mutual fund?

Mutual funds are required to dispatch certificates or statements of within six weeks from the date

of closure of the initial subscription of the scheme. In case of close ended schemes, the investors

would get either a DEMAT account statement or unit certificates as these are traded in the stock

exchanges. In case of open-ended schemes, a statement of account is issued by the mutual fund

within 30 days from the date of closure of initial public offer of the scheme. The procedure of

repurchase is mentioned in the offer document.

How long will take for transfer of units after purchase from stock markets in case of close-

ended scheme.

According to SEBI regulations, transfer of units is required to be done within thirty days from the

date of lodgment of certificates with the mutual fund.

How much time will take to receive dividend/repurchase proceeds from unit holder

A mutual fund is required to dispatch the unit holder the dividend warrants within 30

Days of the declaration of the dividend and the redemption or repurchase proceeds within 10

working days from the date of redemption or repurchase request made by the unit holder.

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The mutual fund scheme can change the nature from one specified in the offer document

yes, however no change in the nature or terms of the scheme e.g. structure, investment pattern etc

can be carried out unless a written communication is sent to each unit holder and an advertisement

is given in one English daily having nationwide circulation and in a newspaper published in the

language of the region where the head office of the mutual fund is situated. The unit holders have

the right to exit the scheme at the prevailing NAV without any exit load if they do not want to

continue with the scheme. The mutual funds are also required to follow similar procedure while

converting the scheme from close ended to open-ended scheme and in case of change in sponsor.

If mutual fund scheme is wound up, what happens to money invested?

In case of winding up of a scheme, the mutual funds pay a sum based on prevailing NAV after

adjustment of expenses. Unit holders are entitled to receive a report on winding up from the

mutual funds which gives all necessary details.

How can the investors redress their complaints?

Investors would find the name of contact person in the offer document of the mutual fund scheme

that they may approach in case of any query, complaints or grievances. Trustees of a mutual fund

monitor the activities of the mutual fund. The names of the directors of asset Management

Company and trustees are also given in the offer documents. Investors can also approach SEBI for

reprisal of their complaints. On receipt of complaints, SEBI takes up the matter with the concerned

mutual fund and follows up with them till the matter is resolved. Investors may send their

complaints too.

What is the procedure for registering a mutual fund with SEBI?

An applicant proposing to sponsor a mutual fund in India must apply in Form A with a fee of

Rs.25, 000. The application is examined and once the sponsor satisfies certain conditions such as

being in the financial services business and possessing positive net worth for the last five years,

having net profit in three out of the last five years and

Possessing the general reputation of fairness and integrity in all business transactions, it is required

to complete the remaining formalities for setting up a mutual fund. These

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include inter alias, executing the trust deed and investment management agreement, setting up a

trustee company/board of trustees comprising two- thirds independent trustees, incorporating the

asset management company (AMC), contributing to at least 40% of the net worth of the AMC and

appointing a custodian. Upon satisfying these conditions, the registration certificate is issued

subject to the payment of registration fees of Rs.25.00 lacks For details, see the SEBI (Mutual

Funds) Regulations, 1996.

What is the procedure for redressal of investor grievances?

When investors send complaints to SEBI, SEBI takes up the matter with the concerned mutual

funds and follows up with them till they are resolved.

Procedure for Change in the Controlling Interest of the Asset Management Company:

Requirement of Regulations

According to Regulation 22(e) of SEBI (Mutual Funds) Regulations, 1996, no change in the

controlling interest of the asset management company can be made unless,

Prior approval of the trustees and the Board (i.e. SEBI) is obtained;

a written communication about the proposed change is sent to each unit holder and an

advertisement is given in one English daily newspaper having nationwide circulation and in a

newspaper published in the language of the region where the Head Office of the mutual fund is

situated; and

the unit holders are given an option to exit on the prevailing Net Asset Value without any exit

load.

All the conditions prescribed above are required to be complied with. It is advised that the mutual

funds should give at least 30 days time period to the unit holders to exercise the exit option.

New Sponsors

In case the applicant proposing to take the control of the mutual fund is not an existing mutual

fund registered with SEBI, it should apply to SEBI for registration under SEBI (Mutual Funds)

Regulations, 1996.

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The entire procedure for registration under SEBI (Mutual Funds) Regulations, 1996 is given on the

SEBI website under the heading "How to get registered as a mutual fund" in the Mutual Fund

section.

Undertakings by new trustees/Sponsors In case of new sponsors or in case of taking over of the

schemes by an existing mutual fund, the undertakings on the following lines are required to be

given in the interest of unit holders:

Taking full responsibility of the management and the administration of the schemes including the

matters relating to the reconciliation of accounts (as if the schemes had been floated by the new

trustees on the date of taking over).

Assumption of the trusteeship of the assets and liabilities of the schemes including unclaimed

dividends and unclaimed redemptions.

Assuming all responsibilities and obligations relating to the investor grievances, if any, in respect

of the schemes taken over, in accordance with and pursuant to the SEBI (Mutual Funds)

Regulations.

Disclosures to Unit holders

While seeking the approval of SEBI for change in the controlling interest of the asset management

company, the mutual fund handing over the control to another person, should also file the draft

letter to be sent to the unit holders.

The draft letter to the unit holders should include the following information

(a) The activities of the new sponsor and its financial performance as prescribed in the standard

offer document;

(b) In case of taking over of the schemes by an existing mutual fund registered with SEBI, the

draft letter should also include the condensed financial information of all the schemes in the format

prescribed in the standard offer document;

(c) The amount of unclaimed redemption and dividend and also the procedure for claiming such

amount by the unit holders.

Communication by SEBI

While approving the change in controlling interest of the AMC, SEBI may communicate any

further observations, as necessary.

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Revision of Offer Documents

The information given in the offer documents of existing schemes shall be revised and updated

pursuant to the change in controlling interest of the mutual fund. Such addendum shall also be

filed with SEBI, as required under the SEBI (Mutual Funds) Regulations and Guidelines.

Other Situations

In case of any other situation like indirect control of the asset management company or

Change in the promoters of the sponsor, etc, the mutual fund should provide full information to

SEBI for advice on the further course of action.

In case of any difficulty, SEBI will guide the applicant step by step after getting application for

change in the controlling interest of the asset management company. Normally, all replies are sent

within 21 working days from the date of getting each communication from the applicant during the

process of change in the controlling interest of the asset management company.

An investor has various alternative avenues to invest his savings in. hence , savings are risk and

return characteristics. The objective of the investor is to minimize the risk involved in investment

and maximize the return from the investment.

The objective of the investor should be:

Maximization of return

Minimization of risk

Hedge against inflation

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REVIEW OF LITERATURE

In the area of risk and return analysis two well known economist made effort to study the

relation between risk and return and they are the people who quantify the risk and return aspects of

an instrument .they are Harry markowitz and William Sharpe.

Very broadly the investment process consists of two tasks. The first task is security analysis which

focuses on assessing the risk and return characteristics of the available investment alternatives. The

second task is portfolio selection which involves choosing the best possible portfolio from the set

of feasible portfolio.

Portfolio theory, originally proposed by Harry markowitz in the 1950s was the first formal

attempt to quantify the risk of portfolio and develop a methodology for determining the optimal

portfolio .prior to the development of portfolio theory ,investors dealt with the concept of return

and risk somewhat loosely .Harry markowitz was the first person to show quantitatively why and

how diversification reduce risk .in recognition of his seminal contribution in this field he was

awarded the Nobel prize in economics in 1990.

Harry markowitz developed an approach that helps the investors to achieve his optimal

portfolio position .in this contest William Sharpe and others try to find out an answer for a

question ,what is the relationship between risk and return and they developed capital asset pricing

theory .(CAPM)

The CAPM, in essence, predicts the relationship between the risk of an asset and its expected

return .this relationship is very useful in two important ways .first, it produces a bench mark for

evaluating various instrument .second, it helps us to make an informal guess about the return that

can be expected from an assets that has not yet been traded in the market.

De Bondt and Thayler study the price in relation to book value in a universe of all NYSE and

American Stock Exchange equity issue. It has explained the relation between the market price and

book value, with stock being assigned in quintiles from lowest price to book ratios. The earning

yields effect on stock return is significantly positive only in January for the sub period.

Piotroski investigates whether fundamental analysis can be used to provide abnormal returns, and

right shift the returns spectrum earned by a value investor. He focused on high book to market

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securities, and show that the mean return earned by a high book to market investor can be shifted

to the right by at least 7.5% annually.

The authors developed portfolio based on four fundamental conditions namely: Single Value P/E

Market Price


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CHAPTER-2

RESEARCH METHODOLOGY

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STATEMENT OF THE PROBLEM

At present there are many investment avenues available to the investors. The investors consider the

return and risk are involved when choosing the investment. Different investment avenues are

available to investors. Mutual fund also after good investment opportunities to the investors. The

investors should compare the risks and expected yields after adjustment of tax on various

instruments while taking investment decisions.

The investors may seek advice from experts and consultants including agents and distributors of

mutual fund schemes while making investment decisions.

The mutual fund schemes provide to low and middle class investors to enter in to a capital

market.

This type of investors can expect more return from less risky portfolios.

The study of mutual funds, analyzing the performance of hybrid funds is, balanced fun

allocation fund, and capital appreciation on the basis of one year NAV.

OBJECTIVES OF THE STUDY

To Finding the effectiveness of hybrid funds in mutual funds industry.

To assess the saving objective among individual investors.

SCOPE OF THE STUDY:

The net asset values of 4 schemes are taking for one year. The various schemes are taking for this

study is:

HDFC mutual fund

UTI mutual fundKOTAK MAHINDRA mutual fund

ICICI prudential

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LIMITATION OF THE STUDY:

The study takes only 4 schemes though thirty two companies are offering mutual fund

schemes.

The comparative study is undertaking based on equity

Each mutual fund has an investment objective. Many funds have similar objectives and can beplaced in groups called styles.

These include:

Equity funds

Debt funds

International funds

Hybrid funds

Here we will take special reference of hybrid funds

Needs of a healthy investment portfolio with special reference to hybrid funds

HYBRID FUNDS

The option available is a hybrid fund which has many products with asset allocation variation of

equity and debt. Hybrid securities are a classic example of capital management tools, combining

elements of debt, and

Equity in a flexible and cost effective manner. In the capital structure, hybrids sit between senior

debt and ordinary equity .while hybrid funds are not likely to be the hottest

Performers, people who invest in them are not usually worried about whats happening in the

market.

There are two basic types of hybrid funds on the basis of asset allocation

Equity oriented hybrid funds, Debt- oriented hybrid funds

Equity oriented hybrid funds:

Equity oriented hybrid funds are best suited for investors who seek stability and reasonable

returns. The one year average returns till May 7, 2005 was 16.25% which is a decent return

compared to the 25.24% average return of diversified equity fund.

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0

20

40

60

80

100

1month

retun

3month

return

6month

return

1 year

return

Hybrid equity oriented

sensex

jp Morgan

Debt -oriented hybrid funds:

The prices of these schemes tend to be more stable compared to equity schemes and most of

returns for the investors are generated through dividends or steady capital appreciation.

The one year returns of an average debt oriented hybrid funds is 7% and there is no sign of

recovery in bond market.

There are three main categories of hybrid funds based on investment objectives:

Balanced funds

Asset allocation fundsFlexible funds

Operational definitionsMS excel is used in order to calculate standard deviation variance and average return as well as to

draw charts.

The other kinds of formulae used are

Computation of standard deviation

Rate of return = (closing stock-opening stock)/ (opening stock)*100

Standard deviation calculated as per the excel formulae

Variance= square of the standard deviation

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DATA COLLECTION:

The study mainly depends on the secondary data.

Journals

MagazinesNews papers

The net asset values of different schemes are obtained from various companies.

Absolute Returns (as on Apr 20, 07) Performance of HDFC Balanced Fund (G)

Period Returns (%) Ranks #

1mth 6.9 5

3mth -5.5 36

6mth - 34

1year 3.6 22

2year 56.4 19

3year 75.6 19

5year 197.4 18

# Money control Rank within 37 Balanced Schemes (CHART-1.1)

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PERFORMANCE OF HDFC BALANCED FUNDS

-50

0

50

100

150

200

250

1mth 3mth 6mth 1year 2year 3year 5year

PERIOD

RETURNS

Returns (%)

Ranks #


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Absolute Returns (in %)

2006 14.2 -10 13.6 6.8 26.5

2005 -0.2 2.1 16 3.5 26.5

2004 -4.3 -8.8 11.9 11.7 13.32003 -4.8 14.8 19.4 21.4 59.5

2002 11.5 -6.6 -6.6 11.7 14.7

(Chart-1.2)

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ABSOLUTR RETURNS IN %

-20

-10

0

10

20

30

40

50

60

70

Qtr1 Qtr2 Qtr3 Qtr4 Annual

PERIOD

RETURN

Series1

Series2

Series3

Series4

Series5


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Released on 08th April 2005

EXISTING SCHEMES (Rs. in Crore)

Open End Close End Total

No Of

Schemes AmountNo Of

Schemes AmountNo Of

Schemes Amount

Income 131 15751 15 ^ 398 146 16149

Growth 141 1812 2 - 143 1812

Balanced 34 367 1 - 35 367

Liquid /

Money

Market

39 69740 - - 39 69740

Gilt 30 442 - - 30 442

ELSS 20 39 17 - 37 39

Total 395 88151 35 398 430 88549

HDFC balanced funds (G)

As on 20-04-

2007

% % Within fund

class

1 week ** 0.6 22

1 month ** 6.9 5

3 months ** -5.5 36

6 months ** -12.1 34

1 year -9.0 -9.0 22

2 year 10.7 22.4 19

3 year 2.6 8.1 19

5 year 10.9 68.0 18

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HDFC Capital Builder Fund (D)

Annualized

Returns

Absolute

Returns

Performance

Rank (#)

As on 20-042007

% % Within fundclass

1 week ** 1.6 21

1 month ** 10.3 6

3 months ** -11.1 14

6 months ** -2.8 62

1 year -9.5 -9.5 110

2 year 13.5 28.9 76

3 year 22.8 85.3 22

5 year 32.5 309.2 20

REFERENCE: Association of mutual funds industry

POPULATION

In mutual funds industry there are 1000 companies so far out of this 50 companies are very

important, .from this 50 companies, I have selected 5 mutual fund companies.

SAMPLE SIZE

I have been selected 5 companies from the mutual funds industry .These companies are from 5

mutual fund companies.

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CHAPTER-3

COMPANY PROFILE:

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The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised

Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund)

Regulations 1996.

The number of mutual fund houses went on increasing, with many foreign mutual funds setting up

funds in India and also the industry has witnessed several mergers and acquisitions. As at the end

of January 2003, there were 33 mutual funds with total assets of Rs. 1, 21,805 crores. The Unit

Trust of India with Rs.44, 541 crores of assets under management was way ahead of other mutual

funds.

Fourth Phase since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into

two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under

management of Rs.29, 835 crores as at the end of January 2003, representing broadly, the assets of

US 64 scheme, assured return and certain other schemes. The Specified Undertaking of Unit Trust

of India, functioning under an administrator and under the rules framed by Government of India

and does not come under the purview of the Mutual Fund Regulations.

The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered

with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile

UTI which had in March 2000 more than Rs.76, 000 crores of assets under management and with

the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with

recent mergers taking place among different private sector funds, the mutual fund industry has

entered its current phase of consolidation and growth. As at the end of September, 2004, there

were 29 funds, which manage assets of Rs.153108 crores under 421 schemes.

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The graph indicates the growth of assets over the years

GROWTH IN ASSETS UNDER MANAGEMENT

Note:

Erstwhile UTI was bifurcated into UTI Mutual Fund and the Specified Undertaking of the Unit

Trust of India effective from February 2003. The Assets under management of the Specified

Undertaking of the Unit Trust of India has therefore been excluded fromthe total assets of the

industry as a whole from February 2003 onwards

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HDFC GROUP & BUSINESS:

Group companies

HDFC Limited

HDFC was incorporated in 1977 with the primary objective of meeting a social need - that of

promoting home ownership by providing long-term finance to households for their housing needs.

HDFC was promoted with an initial share capital of Rs. 100 million.

HDFC Bank Limited

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive

approval from the Reserve Bank of India to set up a bank in the private sector. The bank was

incorporated in August 1994 in the name of HDFC Bank Limited, with its registered office in

Mumbai.

HDFC Securities Limited

HDFC Securities Ltd was promoted by the HDFC Bank & HDFC with the objective of providing

the diverse customer base of the HDFC Group and other investors, a capability to transact in the

Stock Exchanges & other financial market transactions.

HDFC sec, provides you with the necessary tools to allocate, select and manage your investments

wisely, and also support it with the highest standards of service, convenience and hassle-free

trading

HDFC Asset Management Company Limited

HDFC Fund is a dominant player in the Indian mutual fund space, recognized for its high levels of

ethical and professional conduct and a commitment towards enhancing investor interests.

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HDFC Realty Limited

HDFC Realty is a new, organized electronic marketplace for properties. HDFC realty provides the

entire gamut of real estate services, bringing together the "clicks world"

And the "bricks world" in a revolutionary and user-friendly way. Making available the best

guidance and the most professional, transparent, efficient service to the real estate customer.

HDFC Standard Life Insurance

HDFC and Standard Life first came together for a possible joint venture, to enter the Indian Life

Insurance market, in January 1995.

HDFC Ltd:

Housing Finance Sector

Against the milieu of rapid urbanization and a changing socio-economic scenario, the demand for

housing has grown explosively. The importance of the housing sector in the economy can be

illustrated by a few key statistics. According to the National Building Organization (NBO), the

total demand for housing is estimated at 2 million units per year and the total housing shortfall is

estimated to be 19.4 million units, of which 12.76 million units is from rural areas and 6.64 millionunits from urban areas. The housing industry is the second largest employment generator in the

country. It is estimated that the budgeted 2 million units would lead to the creation of an additional

10 million man-years of direct employment and another 15 million man-years of indirect

employment.

Having identified housing as a priority area in the Ninth Five Year Plan (1997-2002), the National

Housing Policy has envisaged an investment target of Rs. 1,500 billion for this sector. In order to

achieve this investment target, the Government needs to make low cost funds easily available and

enforce legal and regulatory reforms.

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Background

HDFC was incorporated in 1977 with the primary objective of meeting a social need that of

promoting home ownership by providing long-term finance to households for their housing needs.

HDFC was promoted with an initial share capital of Rs. 100 million.

Business Objectives

The primary objective of HDFC is to enhance residential housing stock in the country through the

provision of housing finance in a systematic and professional manner, and to promote home

ownership. Another objective is to increase the flow of resources to the housing sector by

integrating the housing finance sector with the overall domestic financial markets..

Organizational Goals

HDFCs main goals are to a) develop close relationships with individual households, b) maintain

its position as the premier housing finance institution in the country, c) transform ideas into viable

and creative solutions, d) provide consistently high returns to shareholders, and e) to grow through

diversification by leveraging off the existing client base.

HDFC SECURITIES

PROFILE

HDFC Securities, a trusted financial service provider promoted by HDFC Bank and JP Morgan

Partners and their associates, is a leading stock broking company in the country, serving a diverse

customer base of institutional and retail investors.

HDFCsec.com provides investors a robust platform to trade in Equities in NSE and BSE , and

derivatives in NSE. Our website will support you with the highest standards of service,

convenience and hassle-free trading tools.

Our research team tracks the economy, industries and companies to provide you the latest

information and analysis. Our content offers financial information, analysis, investment guidance,

news & views, and is designed to meet the requirements of everyone from a beginner to a savvy

and well-informed trader. With HDFCsec.com, you get:

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Speed:

Our state-of-the art technology enables to instantly trade on the BSE and NSE.

Convenience

You can trade with us online or on the phone from the convenience of your home or office. Use

the 3-in-1 Advantage account to seamlessly move funds and securities across your bank DEMAT

and trading account. This way, you do not have to issue CHEQUE or delivery instructions.

Transparency:

With our trusted pedigree, you can be assured that you get the best services in a transparent

manner. By broking with us, you are in total control of your funds and stocks.

Expertise:

Our Group has decades of experience in providing financial services to customers in a transparent

and trusted manner. We have a dedicated, motivated and experienced team of professionals to

provide you top class service.

Timely and Relevant Information:

We 33realize the importance of making information available to you as it happens. Empowered

with the latest news, developments and research, you will be able to take informed decisions.

Youre Interest:

For us, your interest comes first. We endeavor to provide high quality investment services, in a

simple, direct and cost-effective way to help you achieve your financial goals.

Our Offerings

Cash-on-Carry on both NSE and BSE by taking delivery of shares.

Online trading for Resident & NRIs.

Day trading, on both NSE and BSE, wherein all the positions are compulsorily squared up on the

same trading day.

Trade Futures & Options on the NSE.

Online IPOs.

Telephone - based trading for Equities, Derivatives and IPOs.

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HDFC REALTY.COM

Profile

The property market in India abounds with possibilities and potential ... but for the large part, it is

still highly fragmented and disorganized.

HDFCrealty.com is youre new, organized electronic marketplace for properties. We provide the

entire gamut of real estate services, bringing together the "clicks world" and the "bricks world" in a

revolutionary and user-friendly way. Making available the best guidance and the most

professional, transparent, efficient service to the real estate customer.

HDFCrealty.com brings together India's most exhaustive database of properties. It acts as a one-

stop online hub for information, comparative analyses, transactions, market reach and

comprehensive professional services. For property anywhere in India. For customers anywhere in

the world HDFCrealty.com, the company behind this site, has been formed by Housing

Development Finance Corporation Limited (HDFC).

HDFC has since emerged as the largest residential mortgage finance institution in the country.

HDFC is Indias largest Housing Finance Company and is an expert on the housing sector,

property markets and the real estate business. HDFC has a strong retail orientation with high

quality customer service being the driving force for its activities. This expertise and service

orientation has developed and strengthened over the last 22 years. Today HDFC has an office

network of 63 offices all over the country and an overseas office in Dubai. HDFC has financed

over 1.5 million dwelling units with loan approvals and disbursements amounting to Rs. 225

billion and Rs. 186 billion respectively.

HDFC Chubb

With over one century of experience in the field of non-life insurance from Chubb and

HDFC's expertise from the financial segment, HDFC Chubb General Insurance Company Limited

has the consumer insight to make its product range world class and comprehensive.

Motor Insurance

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We understand and care for your vehicle beyond just the policy issue and speedy claims. HDFC

Chubb's Motor Insurance product mainly focuses on Motor Package Policy for private cars & two

wheelers.

Home Insurance

With Home Insurance, we will offer you cover for your home and belongings against fire and

burglary. Our Home Insurance will bring you the convenience of purchase from HDFC's home

loan counters.

Accident & Health

Accidents can happen anywhere and at anytime, which is why the HDFC Chubb Accident and

Travel policy is designed to protect you from the financial consequences.

Avail of the Group Accident Policy, Hospital cash-Accident policy and Business Travel policy.

HDFC standard life

HDFC Standard Life Insurance Company Ltd. is one of Indias leading private life insurance

companies, which offers a range of individual and group insurance solutions. It is a joint venture

between Housing Development Finance Corporation Limited (HDFC Ltd.), Indias leading

housing finance institution and one of the subsidiaries of Standard Life plc, leading providers of

financial services in the United Kingdom. Both the promoters are well known for their ethical

dealings and financial strength and are thus committed to being a long-term player in the life

insurance industry all important factors to consider when choosing your insurer.

BSE

The Stock Exchange, Mumbai is not in any manner answerable, responsible or liable to any person

or persons for any acts of omission or commission, errors, mistakes, and/or violation, actual or

perceived, by us or our partners, agents, associates, etc., of any of the Rules, Regulations, Bye-

laws of the Stock Exchange, Mumbai, SEBI Act or any other laws in force from time to time. The

Stock Exchange, Mumbai is not answerable, responsible, or liable for any information on this

Website or for any services rendered by us, our employees, and our servants.

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PRODUCT PROFILE:

Equity funds

Debt funds

Balanced funds

Debt Instruments

Equity

Money Market Instruments

NBFC Deposits

Company Deposits

Bonds

Debentures

Bank Deposits ( FDs and savings accounts)

Government Small Savings Schemes (E.g. PPF)

Mutual Funds

Balanced schemes

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Investment Pattern

Defensive or aggressive posture at any point in time. Risk will also be controlled

Income securities including structured obligations etc.) Include, but are not limited to:

Debt obligations of / Securities issued by the Government of India, State and local Governments,

Government Agencies and statutory bodies (which may or may not carry a state / central

government guarantee).

Securities that have been guaranteed by Government of India and State Governments.

Securities issued by Corporate Entities (Public / Private sector undertakings).

Securities issued by Public / Private sector banks and development financial institutions.

Money Market Instruments Include

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Nature of Scheme Open Ended Balanced Scheme

Inception Date September 11, 2000

Option/PlanDividend Plan, Growth Plan. The Dividend Plan offers

Dividend Payout and Reinvestment Facility.

Entry Load

(as a % of the Applicable NAV)

In respect of each purchase / switch-in of Units less

than Rs. 5 crore in value, an Entry Load of 2.25% is

payable.

In respect of each purchase / switch-in of Units equal

to or greater than Rs. 5 crore in value, no Entry Load is

payable.

Exit Load

(as a % of the Applicable NAV)Nil

Minimum Application Amount

For new investors: Rs.5000 and in multiples of Rs.100

thereafter.

For existing investors: Rs. 1000 and in multiples of Rs.

100 thereafter.

Lock-In-Period Nil

Net Asset Value Periodicity Every Business Day.

Redemption Proceeds Normally dispatched within 3 Business days

Tax Benefits

(As per present Laws)


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Commercial papers

Commercial bills

Treasury bills

Government securities having an unexpired maturity up to one year

Call or notice money

Certificate of deposit

Stance bills

Permitted securities under a repo / reverse repo agreement

Any other like instruments as may be permitted by RBI / SEBI from time to time

Investments will be made through secondary market purchases, initial public offers, other public

offers, placements and right offers (including renunciation). The securities could be listed,

unlisted, privately placed, secured / unsecured, rated / unrated of any maturity.

The AMC retains the flexibility to invest across all the securities / instruments in debt and money

market.

Investment in debt securities will usually be in instruments which have been assessed as "high

investment grade" by at least one credit rating agency authorized to carry out such activity under

the applicable regulations. Pursuant to SEBI Circular No. MFD/ CIR/9/120/2000 dated November

24, 2000; the AMC may constitute committee(s) to approve proposals for investments in unrated

debt instruments. The AMC Board and the Trustee shall approve the detailed parameters for such

investments. The details of such investments would be communicated by the AMC to the Trustee

in their periodical reports. It would also be clearly mentioned in the reports, how the parameters

have been complied with. However, in case any unrated debt security does not fall under the

parameters, the prior approval of Board of AMC and Trustee shall be sought. Investment in debt

instruments shall generally have a low risk profile and those in money market instruments shall

have an even lower risk profile. The maturity profile of debt instruments will be selected in

accordance with the Fund Managers view regarding current market conditions, interest rate

outlook and the stability of ratings.

RISK CONTROL

The overall portfolio structure would aim to maintain risk at a moderate level. The Fund Manager

would avoid adopting either a very defensive or aggressive posture at any point in time. Risk will

also be controlled

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Through portfolio diversification and a conscious focus on maintaining adequate levels of liquidity

at all points in time. Macro economic risk will be addressed through a constant review of the

business and economic environment. The AMC may from time to time, review and modify the

Schemes? Investment strategy if such changes are considered to be in the best interest of Unit

holders and appropriate to the existing market situation. Investments in securities and instruments

not specifically mentioned earlier may also be made, provided they are permitted by SEBI

Regulations.

HYBRID FUNDS

- is a mutual fund scheme that invests in schemes of mutual funds

- Does not invest directly in shares or debentures

Structure of Hybrid funds

Balanced funds

Capital appreciation

Asset allocation fund

Flexible funds

Money market fund

How does an HDFC mutual fund work?

Investments primarily in schemes recommended by a designated agency

Recommendations based on research methodology

Investments in top recommended schemes

Periodic review and rebalancing, quarterly

HDFC hybrid funds: Benefits

The whole is greater then the sum of its parts

A unique first time product

Suited for retail investors

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A FIRST, once again from HDFC mutual funds

Advisory

Investments in best of breed balanced schemes

At all times

Convention automatic rebalancing

Less paper work

Efficient investment vehicle

Tax efficiency

Load benefits

The Risk-Return Trade-off

The most important relationship to understand is the risk-return trade-off. Higher the risk greaterthe returns/loss and lower the risk lesser the returns/loss.

Hence it is up to you, the investor to decide how much risk you are willing to take. In order to do

this you must first be aware of the different types of risks involved with your investment decision.

Market Risk

Sometimes prices and yields of all securities rise and fall. Broad outside influences affecting the

market in general lead to this. This is true, may it be big corporations or smaller mid-sized

companies. This is known as Market Risk. A Systematic Investment Plan (SIP) that works on

the concept ofRupee Cost Averaging (RCA) might help mitigate this risk

Credit RiskThe debt servicing ability (may it be interest payments or repayment of principal) of a company

through its cash flows determines the Credit Risk faced by you. This credit risk is measured by

independent rating agencies like CRISIL who rate companies and their paper. A AAA rating is

considered the safest whereas a D rating is considered poor credit quality. A well-diversified

portfolio might help mitigate this risk.

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Inflation Risk

Things you hear people talk about:

Rs. 100 today is worth more than Rs. 100 tomorrow.

Remember the time when a bus ride costed 50 paise?Mehangai Ka Jamana Hai.

The root cause, Inflation. Inflation is the loss of purchasing power over time. A lot of times people

make conservative investment decisions to protect their capital but end up with a sum of money

that can buy less than what the principal could at the time of the investment. This happens when

inflation grows faster than the return on your investment. A well-diversified portfolio with some

investment in equities might help mitigate this risk.

Interest Rate Risk

In a free market economy interest rates are difficult if not impossible to predict. Changes in

interest rates affect the prices of bonds as well as equities. If interest rates rise the prices of bonds

fall and vice versa. Equity might be negatively affected as well in a rising interest rate

environment. A well-diversified portfolio might help mitigate this risk

Liquidity Risk

Liquidity risk arises when it becomes difficult to sell the securities that one has purchased.

Liquidity Risk can be partly mitigated by diversification, staggering of maturities as well as

internal risk controls that lean towards purchase of liquid securities

Financial Planning

The first and most important step in your life as an investor is to define your goals at the onset of

your investing activity. This will map the road ahead for you in terms of time, amount, type of

asset and risk. At this point of time you must also decide how much you are willing to save. When

you look at defining your goals think carefully and try to include all your requirements, here are a

few things that might help you:

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Retirement In how many years?

How much money will you need?

How long will you need it for?

Daughters/Sons wedding When and how much?

Daughters/Sons education When and how much?

Purchase of big ticket items e.g. House, Car etc.

Again, when and how much?

A simple way to get an overall perspective is to draw a time line starting from today with the

amount you have saved up till now labeled at time zero. Going forward you can label your major

outflows as and when they occur till retirement and then the steady outflows for your retirement

income. Please remember your worst enemy Inflation and factor this into your targets.Remember that in an inflationary environment an apple will cost more tomorrow than today. For

example:

There are three major asset classes that you can put your money into, namely equities, fixed

income and money market instruments. In order to decide how much of your money goes into

which investment class you must first consider a few important factors (most of these will be

tackled by you during your goal definition phase):

Return expected on your investment

Amount you will be able to save (present as well as future)

Cash outflows you might have at certain points of time in the future

Risk appetite

Amount you will require for your retirement

Liquidity

Youre Age

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Aggressive Portfolio

MODERATE PORTFOLIO

CONSERVATIVE PORTFOLIO

AGE Main Objectives Portfolio Strategy

20-29 Aggressive Growth Sow the seeds, plan

for housing and create a safety cushion

50% - Growth Funds

30% - Balanced Funds

20% - Money Markets / Cash30-39 Growth Save for housing, childrens

expenses (present and future education

etc.) and safety cushion

45% - Growth Funds


05% - Blue Chip Stocks

20% - Money Markets / Cash

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40-49 Growth Childrens expenses (present and

future education etc.) and safety cushion

40% - Growth Funds




50-59 Retirement Save for retirement and build

on safety cushion

30% - Growth Funds




60-69 Safety Preserve investments/ savings and

opt for minimal growth


15% - Income Funds


20% - Dividend Stocks

30% - Certificates of Deposits (Shorter-

term)


70- Safety Preserve investments/ savings 30% - Income Funds

25% - Dividend Stocks

35% - Certificates of Deposits (Shorter-

term)


The Sharpe Measure

In this model, performance of a fund is evaluated on the basis of Sharpe Ratio, which is a ratio of

returns generated by the fund over and above risk free rate of return and the total risk associated

with it. According to Sharpe, it is the total risk of the fund that the investors are concerned about.

So, the model evaluates funds on the basis of reward per unit of total risk. Symbolically, it can be

written as:

Sharpe Index (Si) = (Ri - Rf)/Si

Where, Si is standard deviation of the fund.

While a high and positive Sharpe Ratio shows a superior risk-adjusted performance of a fund, a

low and negative Sharpe Ratio is an indication of unfavorable performance.

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Comparison of Sharpe and Treynor

Sharpe and Treynor measures are similar in a way, since they both divide the risk premium by a

numerical risk measure. The total risk is appropriate when we are evaluating the risk return

relationship for well-diversified portfolios. On the other hand, the systematic risk is the relevant

measure of risk when we are evaluating less than fully diversified portfolios or individual stocks.

For a well-diversified portfolio the total risk is equal to systematic risk. Rankings based on total

risk (Sharpe measure) and systematic risk neither (Trey nor measure) should be identical for a

well-diversified portfolio, as the total risk is reduced to systematic risk. Therefore, a poorly

diversified fund that ranks higher on neither Trey nor measure, compared with another fund that is

highly diversified, will rank lower on Sharpe Measure.

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CHAPTER-4

ANALYSIS AND INTERPRETATION OF

DATA

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RISK AND RETURN OF THE MUTUAL FUNDS b/w 1-6-05TO 30-5-06

comparison Equity fund

S.D C.V

Balanced fund

S.D C.V

UTI 0.0661 2.934 0.01096 4.873

HDFC 0.000270 12.16 0.38017 16.38

ICICI prudential 0.01419 63.40 0.01093 48.8

KOTK Mahindra 0.0239 14.64 0.00125 55.56

Reference: Annexure

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1

10

100

1,000

10,000

UTI

HDFC

ICICIp

rude

ntial

KOTK

Mahind

ra

equity(c,v)

balance(c.v)


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Interpretation::

1. In the case of UTI the risk is higher in equity fund but the movement of the fund price is in the

same direction (+ve), 0.0661. In HDFC the risk is higher in balanced fund. In the case of icici the

risk is high in equity fund. In Kotak Mahindra the risk is low .Totally HDFC is very low risk in

equity fund compared to all companies (0, 00125).

2. In four companies, the risk is least risky one, in equity. But in the case of ICICI Prudential

displays a high risk in equity. Because UTI is the government mutual fund. They never cannot take

risk. Because economical risk, social risk, and political risk .so we can see in asset under

management is 69.28 Lakhs .The ICICI have been taking number of business. The higher levels

are not concentrating for a particular business. So the customers can get psychological risk. When

the customers get risk then the company will get high risk. Ex: ICICI (asset under management

(AUM) is 20880lakhs.

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CHAPTER-5

FINDINGS SUGGESTIONS ANDCONCLUSION

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Findings:

Suppose A invested in balanced schemes and B invested in equity schemes. In equity schemes

invest every quarter, both are changing the portfolios similarly. In equity is fixed period of time

.The investor cannot change when the less returns. In this analysis equity returns are 63.40%

compared to balanced funds. The investor have high risky. In ICICI is private mutual fund so the

investors can invest government (UTI) mutual fund. The higher level managers cannot take more

risk. Because they have political risk, cultural risk economic risk.

Risk factor is greater than the balanced scheme. In UTI funds asset under management total

69.28lakhs .but in ICICI prudential fund asset under management is 20880.65 Lakhs

In balanced schemes investor can invest in any company .this will be giving more returns

compared to equity schemes.

In a hybrid schemes there is no need to pay capital gain tax and also the entry load in between. But

in equity schemes in changing the portfolios the person is suppose to pay capital gain tax as well as

the entry load if he is selling and going for new scheme.

From the analysis part its very clear that hybrids schemes are giving a better return than equity

schemes.

From the analysis its very clear that if a person is reinvesting the amount as capital gain, it will

earn more returns.

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Suggestions:

The investors invest in mutual funds industry can see the expected returns. The investor will go

through the returns of the funds .so investor must have to see where we get more returns in any

scheme investor can invest.

The investor will choose the balanced schemes in fund schemes.

MAR vis--vis conventional measures

MAR: return expected by investors at the time of investing realistic (divides volatility into positive

and negative)

Capture absolute negative returns as well as returns below the opportunity cost

Minimum access able return=risk-free return + risk premium

*Risk free return assumed = average daily returns from liquid

Schemes (averaged over 1 month)

*investors will be polled each quarter to determine risk premium required

To invest in balanced schemes

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CONCLUSION:

The investors invest in any mutual fund company they are expecting more returns of the funds. If

the investor will get more returns and less risk the balanced scheme will give this return. In

balanced scheme we will get more returns compared to equity schemes.

In portfolio investment is growing rapidly because of this return. The investors are also investing

in mutual fund industry the reason is the les risk and more returns. So the investment can do betterway, means in balanced schemes funds returns more compared to equity schemes when I have

analyzed in returns standard deviations and covariance, funds will get more returns in mutual

funds industry.

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BIBLIOGRAPHY:

www.amfi.com

www.valueresearch.com

www.bseindia.com

www.finditonline.com

Investment analysis and portfolio management 2nd edition Prasanna

Chandra

Tata Mc graw-hill publications.

The Icfai University press journal march -2007

Out look money magazine January-2007

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Funds Analysis With Respect to Hdfc Mutual Fund

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