Mutual Fund PREM

7/31/2019 Mutual Fund PREM

1/89

1


2/89

2

COMMON STROKES FOR VARIOUS FOLKS

A STUDY ON MUTUAL FUNDS

Submitted in partial fulfillment of PGDM

PGDM BATCH 2011-13

Submitted By

P.PREM KUMAR

Faculty Guide Director Academics


3/89

3

Declaration

I P.PREM KUMAR hereby declare that the project titled COMMON STROKES FOR

VARIOUS FOLKS A STUDY ON MUTUAL FUNDS is an original work carried out

under the guidance ofDr. M.MADANA MOHAN.

The report submitted is a bonafide work of my own efforts and has not been

submitted to any institute or published before.

Signature of the student

P.PREM KUMAR

Date:

Place:


4/89

4

CERTIFICATE

TO WHOMESOEVER IT MAY CONCERN

This is to certify that Mr. P.PREM KUMAR of PGDM has successfully completed

Summer Training Program for a period of 45 days with FUTURE CAPITAL

SECURITIES LTD. from 30th APRIL 2012 to 14th JUNE 2012.

As per our assessment he is hard working and his performance has been good

during the training program.

We wish him all the success for his future.

Signature:

NAVEEN KUMAR DHONTHI

MANAGER

Date:

Place:


5/89


6/89

6

Acknowledgement

I extent my sincere gratitude to Director IRFAN UAL HAQ, VISHWA VISHWANI

SCHOOL OF BUSINESS

I render my whole hearted thanks to Mr. NAVEEN KUMAR DHONTHI, Branch

Manager of FUTURE CAPITAL SECURITIES LTD, for giving me an opportunity to

do my project in their esteem organization. I extent my whole hearted thanks to Mr.

SRINIVAS for valuable inputs given during my project.

I am extremely indebted to MR. BIPIN & MR. MUKESH for enlighten us about the

stock market and off line trading.

I thank my Faculty Guide Dr. M.MADANA MOHAN for continuous support for

pursuing my project.

I render my whole hearted thanks to all the other respected faculties of the

management department, for their assistance and co-operation given to me in regard

to this work.

I thank my parents and other family members for their valuable and motivational

support in completion of this project.

I also take this opportunity to thank all my friends and well wishers for their support in

helping me carrying out my project.

Signature of the student

P.PREM KUMAR

Date:

Place:


7/89

7

Annexure VI

INDEX

Chapter no. Content Page no.

Chapter 1 INTRODUCTION

Chapter 2 COMPANY PROFILE

INDUSTRY PROFILE

LITERATURE REVIEW

Chapter 3 RESEARCH METHOLOGY

Chapter 4 DATA COLLECTION

ANALYSIS & INTERPRETATION

Chapter 5 FINDINGS

RECOMMENDATIONS

CONCLUSION

Bibliography BOOKS/ARTICLES REFERRED

WEBSITES REFERRED


8/89

8

LIST OF TABLES

SR.NO TABLEPAGE

NO.

TABLE 1.1NAME AND ADDRESSES OF SEBI REGISTERED

MUTUAL FUNDS

TABLE 2.1 PROS AND CONS OF THE INVESTMENTS

TABLE 2.2 FUNDS ALLOCATION

TABLE 2.3DIFFERENCES BETWEEN OPEN ENDED & CLOSED

ENDED FUNDS

TABLE 2.4 INTERNATIONAL FUNDS:

TABLE 3.1 KEY INFORMATION :AXIS BANK

TABLE 3.2 SCHEME HIGHLIGHTS

TABLE 3.3 INVESTMENT PATTERN

TABLE 3.4 ABSOLUTE RETURNS

TABLE 3.5 ABSOLUTE ANNUALIZED RETURNS ANALYSIS

TABLE 3.6 TOP HOLDINGS

TABLE 3.7 SECTOR ALLOCATION (31ST MAY 12)

TABLE 3.8 ASSET ALLOCATION (%)

TABLE 3.9 CONCENTRATION

TABLE 3.10 RETURNS (NAV)

TABLE 4.1 KEY INFORMATION : I.C.I.C.I BANK


TABLE 4.3 ABSOLUTE RETURNS




9/89

9




TABLE 5.1 KEY INFORMATION : RELIANCE CAPITAL


TABLE 5.3 ABSOLUTE RETURNS (%)


TABLE 5.5 SECTOR ALLOCATION (31

ST

MAY 12)




TABLE 6.1 KEY INFORMATION : FRANKLIN TEMPLETON


TABLE 6.3 ABSOLUTE RETURNS (%)

TABLE 6.4 ABSOLUTE ANNUALIZED RETURNS ANALYSIS






TABLE 7.1 NAVS OF VARIOUS FUND SCHEMES


10/89

10

LIST OF CHARTS

SR.NO CHART PAGE NO.

CHART 1.1 EQUITY BROKING TURNOVER YEAR WISE

CHART 1.2 Y-O-Y GROWTH EQUITY BROKERAGE TURNOVER

CHART 1.3 EQUITY BROKERAGE TURNOVER QUARTER WISE

CHART 1.4 TOTAL NUMBER OF TRADES CASH SEGMENT

CHART2.1 AGGRESSIVE PLAN

CHART 2.2 CONSERVATIVE PLAN

CHART 3.1 SHOWING ABSOLUTE ANNUALIZED RETURNS

CHART 3.2 SHOWING PORTFOLIO AND ASSEST %

CHART 3.3 SHOWING SECTOR ALLOCATION

CHART 3.4 SHOWING RETURNS (NAV)














11/89

11

CHAPTER 1

INTRODUCTION


12/89

12

MUTUAL FUNDS

INTRODUCTION:-

A mutual fund is a professionally managed type of collective investment scheme that

pools money from many investors and invests it in stocks, bonds, short-term money

market instruments and other securities. Mutual funds have a fund manager who

invests the money on behalf of the investors by buying / selling stocks, bonds etc.

Currently, the worldwide value of all mutual funds totals more than $US 26 trillion.

There are various investment avenues available to an investor such as real estate,

bank deposits, post office deposits, shares, debentures, bonds etc. A mutual fund is

one more type of investment available to investors. There are many reasons why

investors prefer mutual funds. Buying shares directly from the market is one way of

investing. But this requires spending time to find out the performance of the company

whose share is being purchased, understanding the future business prospects of the

company, finding out the track record of the promoters and the dividend, bonus issue

history of the company etc. An informed investor needs to do research before

investing. However, many investors find it cumbersome and time consuming to pore

over so much of information, get access to so much of details before investing in the

shares. Investors therefore prefer the mutual fund route. They invest in a mutual fund

scheme which in turn takes the responsibility of investing in stocks and shares after

due analysis and research. The investor need not bother with researching hundreds

of stocks. It leaves it to the mutual fund and its professional fund management team.

Another reason why investors prefer mutual funds is because mutual funds offer

diversification. An investors money is invested by the mutual fund in a variety of

shares, bonds and other securities thus diversifying the investors portfolio across

different companies and sectors. This diversification helps in reducing the overall risk

of the portfolio. It is also less expensive to invest in a mutual fund since the minimum

investment amount in mutual fund units is fairly low (Rs. 500 or so). With Rs. 500 an

investor may be able to buy only a few stocks and not get the desired diversification.

These are some of the reasons why mutual funds have gained in popularity over the


13/89

13

years. Indians have been traditionally savers and invested money in traditional

savings instruments such as bank deposits. Against this background, if we 6 look at

approximately Rs. 7 lakh crores1 which Indian Mutual Funds are managing, then it is

no mean an achievement. A country traditionally putting money in safe, risk-free

investments like Bank FDs, Post Office and Life Insurance, has started to invest in

stocks, bonds and shares thanks to the mutual fund industry.

However, there is still a lot to be done. The Rs. 7 Lakh crores stated above includes

investments by the corporate sector as well. Going by various reports, not more than

5% of household savings are channelized into the markets, either directly or through

the mutual fund route. Not all parts of the country are contributing equally into the

mutual fund corpus. 8 cities account for over 60% of the total assets under

management in mutual funds. These are issues which need to be addressed jointly

by all concerned with the mutual fund industry. Market dynamics are making industry

players to look at smaller cities to increase penetration. Competition is ensuring that

costs incurred in managing the funds are kept low and fund houses are trying to give

more value for money by increasing operational efficiencies and cutting expenses.

As of today there are around 40 Mutual Funds in the country. Together they offer

around 1051 schemes2 to the investor. Many more mutual funds are expected to

enter India in the next few years.

All these developments will lead to far more participation by the retail investor and

ample of job opportunities for young Indians in the mutual fund industry. This module

is designed to meet the requirements of both the investor as well as the industry

professionals, mainly those proposing to enter the mutual fund industry and therefore

require a foundation in the subject. Investors need to understand the nuances of

mutual funds, the workings of various schemes before they invest since their money

is being invested in risky assets like stocks/ bonds (bonds also carry risk). The

language of the module is kept simple.


14/89


15/89

15

CHAPTER 2

COMPANY PROFILE

INDUSTRY PROFILE

LITERATURE REVIEW


16/89

16

Company profile:

Future Capital Securities Ltd. (FCSL)

FCSL is a Member at the National Stock Exchange of India Ltd. (NSE), Bombay

Stock Exchange (BSE), MCX Stock Exchange Ltd. (MCX-SX) and is a Depository

Participant (DP) of CDSL. It presently offers Retail Broking services in Equities &

Derivatives, Currency Derivatives, Depository services, investments into Mutual

Funds, IPOs, Bonds, and facilitates all kinds of Retail Loans through its network of

Centres spread in 11 States of India.

FCSL commenced operations in August 2010. Future Capital Commodities Ltd.

(FCCL), subsidiary of FCSL has commenced operations in October 2011 with its

Broking & Investment services at the National Spot Exchange Ltd. (NSEL) and

FCSLs CDSL DP is empanelled with NSEL to open Investors DP Commodity

Accounts. Further, FCCL has recently launched broking operations in the

Commodities segment at MCX and NCDEX. FCSL is also in the process of

launching in the immediate future, an all-product, transaction-cum-service portalenabling its clients to seamlessly transact across products with DP and multiple

Bank gateways integrated.

We are offering the entire range of financial products & services through FCCL,

FCSL and our parent, FCH Ltd. Retail Broking services across all the premier Stock

exchanges & Commodity exchanges, Loan against Shares, Loan against Gold, Loan

against Property, Auto Loans, Private Wealth Management services, Property

services, Insurance, Mutual Funds & Bonds are available through the FCSL centres.

FCSL is looking keenly at the Business Associates (Sub-brokers/Authorized

persons/IFAs) channel to expand its reach pan-India.


17/89

17

INDUSTRY PROFILE

HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY

The mutual fund industry in India started in 1963 with the formation of Unit Trust of

India, at the initiative of the government of India and Reserve Bank .The history of

mutual funds in India can be broadly divided into four distinct phases.

FIRST PHASE-1964-87

An act of parliament establishment unit trust of India (UTI) on 1963.It was set up by

the Reserve bank of India and functioned under the Regulatory and administrative

control of the Reserve bank of India. In 1978 UTI was de-linked from the RBI and

the industrial development Bank of India (IDBI)) took over the regulatory and

administrative control in place of RBI. The first scheme launched by UTI was unit

scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of assets under

management.

SECOND PHASE-1987-1993(ENTRY OF PUBLIC SECTOR FUNDS)

1987 marked the entry of non-UTI, public sector mutual funds set up by public sector

banks and Life Insurance Corporation of India (LIC) and General Insurance

Corporation of India (GIC). SBI Mutual Fund was the first non-UTI Mutual Fund

established in June 1987 followed by Can bank Mutual Fund (Dec 87), Punjab

National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of

India (June 90). LIC established its mutual fund in June 1989 while GIC had set up

its mutual fund in December 1990. At the end of 1993, the mutual fund industry had

assets under management of Rs.47, 004 crores.


18/89

18

THIRD PHASE-1993-2003 (ENTRY OF PRIVATE SECTOR FUNDS)

With the entry of private sector funds in 1993, a new era started in the Indian mutual

fund industry, giving the Indian investors a wider choice of fund families. Also, 1993

was the year in which the first Mutual Fund Regulations came into being, under

which all mutual funds, except UTI were to be registered and governed. The

erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private

sector mutual fund registered in July 1993.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 in

1996.The number of mutual fund houses went on increasing, with many foreign

mutual funds setting up funds in India and also the industry gas witnessed several

mergers and acquisitions. As at the end of January 2003, there were 33 mutual

funds with total assets of Rs.1, 21825 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 entitles. 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 s 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 he 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 October 31, 2003, there were 31 funds,

which manage assets of Rs.1, 26,726 crores under 389 schemes.


19/89

19

RECENT TRENDS IN THE MUTUAL FUND INDUSTRY

The most important trend in the mutual fund industry is the aggressive explosion ofthe foreign owned mutual funds companies and the decline of the companies floated

by nationalized banks and small private sector players.

Many nationalized banks got into the mutual funds business in the early nineties and

got of to a good start due to the stock market boom prevailing then. Few hired

specialized staff and generally chose to transfer staff from parent organizations. The

performance of most of the schemes floated by these organizations was not good.

Some schemes had offered guaranteed returns and there parent organizations had

to bail out these AMCs by paying large amount of money as the difference between

the guaranteed and actual returns. The service levels were also very bad. Most of

these AMCs have not been able to retain staff, float new schemes etc. And it is

doubtful whether, barring a few exceptions, they have serious plans of continuing the

activity in a major way.

The experience of some of the AMCs floated by the private sector Indian companies

was also very similar. They quickly realized that the AMC business is a business,

which makes money in the long term and requires deep- pocketed support in the

intermediate years. Some have sold out to foreign owned companies, some have

merged with others and there is a general restructuring going on.

The foreign owned companies have deep pockets and have come here with the

expectations of a long haul. They can be credited with the introduction of many new

practices such as new product innovation, sharp improvement in the service

standards and disclosure, usage of technology, broker education and support etc. In

fact, they have forced the industry to upgrade itself and service levels of

organizations like UTI have improved dramatically in the in the last few years in

response to the competition provided by these.


20/89

20

Table.1.1 NAME AND ADDRESSES OF SEBI REGISTERED MUTUAL FUNDS

S.No Name Registration No Registration Date

1.

Alliance Capital Mutual Fund,

Address for correspondence

C/o. AZB & Partners

Advocates & Solicitors,

Express Towers 23rd Floor,

Nariman Point, Mumbai 400 021

MF/021/95/3 30.12.1994

2.

AIG Global Investment Group Mutual

Fund

FCH House, Ground Floor

Peninsula Corporate Park

Ganpatrao Kadam Marg

Lower Parel

Mumbai 400 013

TEL :

FAX: 24255100

MF/054/07/02 09.02.2007

3.

Axis Mutual Fund,

1st Floor, Axis House,

Bombay Dyeing Mills Compound,

Pandurang Budhkar Marg,

Worli, Mumbai 400025

TEL : 39403300

FAX : 22040130

WEB : www.axismf.com

www.axismutual.com

Email [email protected]

Toll Free No : 1800 3000 3300

MF/061/09/01 04.09.2009

4.

Baroda Pioneer Mutual Fund

501, Titanium, 5th floor,

Western Express Highway,

MF/018/94/2 21.11.1994


21/89

21

Goregaon (E), Mumbai 400 063.

TEL : 307410000, 42197999

FAX :30741001

WEB : www.barodapioneer.in

Email : [email protected]

5.

Birla Sunlife Mutual Fund

One India Bulls Centre, Tower-1,

17th Floor, Jupiter Mills Compound,

841, Senapati Bapat Marg,

Elphinstone Road, Mumbai- 400001

TEL : 43568000

FAX : 43568110/8111

WEB : www.birlasunlife.com

MF/020/94/8 23.12.1994

6.

Bharti AXA Mutual Fund

51, 5th Floor,

Kalpataru Synergy, East Wing,

Vakola, Santacruz (E),

Mumbai 400 055.

TEL : 40479000

FAX : 40479001

Web : www.bhartiaxa-im.com

Email: [email protected]

MF/056/08/01 31.03.2008

7.

BNP Paribas Mutual Fund

1 North Avenue

Maker Maxity

Bandra Kurla Complex

Mumbai-400 051

Tel- 91 (22) 3370 4000

Fax- 91 (22) 3370 4294

WEB : www.bnpparibasmf.in


MF/049/04/01 27.05.2004

8.Canara Robeco Mutual Fund

Construction House, 4th Floor,MF/004/93/4 19.10.1993


22/89

22

5, Walchand Hirachand Marg,

Ballard Estate, Mumbai 400 001.

Tel : 6658 5000 to 5010

Fax 6658 5011 to 5013

WEB : www.canararobeco.com


9.

CRB Mutual Fund

Daruwala Mansion, 3rd Floor,

90 Chandanwadi Cross Lane,

Mumbai 400 020.

TEL : 2072719/20

FAX : 2096433

MF/008/93/5 17.12.1993

10.

Daiwa Mutual Fund,

5th Floor, Harchandrai House,

81, Maharshi Karve Road,

Marine Lines, Mumbai 400 002

TEL : 022-66142900

FAX : 022-66100148

WEB : www.daiwa.in

MF/060/09/01 10.02.2009

11.

Deutsche Mutual Fund

2nd Floor, 222, Kodak House,

Dr. D. N. Road,

Mumbai 400 001.

TEL : 22072211

FAX : 22074411

WEB : http://www.deutschemutual.com


MF/047/02/10 28.10.2002

12.

DSP BlackRock Mutual Fund,

Mafatlal Centre, 10th Floor,

Nariman Point,

Mumbai 400 021.

TEL : 66578000

FAX: 66578181

MF/036/97/7 30.1.1997


23/89

23

WEB : www.dspblackrock.com


Toll Free No: 1800 345 4499

13.

Edelweiss Mutual Fund14th Floor, Express Towers,


TEL : 022-22864400

FAX : 022-4097 9970


Website: www.edelweissmf.com

MF/057/08/02 30.04.2008

14.

Escorts Mutual Fund,

11, Scindia House,

Connaught Circus,

New Delhi 110 001.

TEL : 011-3321654 / 5177 / 3319991 /

3351343

FAX : 011-23761495, 23325177

WEB: www.escortsmutual.com


Mumbai Tel. Nos.

TEL : 30947097, 24218162

MF/028/96/4 3.7.1996

15.

Franklin Templeton Mutual Fund

Level 4, Wockhardt Towers,

Bandra Kurla Complex,

Bandra (East),

Mumbai 400 051

TEL : 6751 9100

FAX : 6649 0622

WEB : www.templetonindia.com

MF/026/96/8 19.2.1996

16.

Fidelity Mutual Fund

6th floor, Mafatlal Centre,

Nariman Point,

Mumbai 400 021

MF/050/05/01 17.02.2005


24/89

24

TEL: Toll Free number 1-600- 121262

Gurgaon : +91 (0124) 509 2104

(Investor Relations Officer's number)

Mumbai : + 91 (022) 5655 4000

FAX: Gurgaon : +91 (0124) 509 2100

Mumbai: +91 (022) 5655 4200


WEB : www.fidelity.co.in

17.

Goldman Sachs Mutual Fund

Rational House,

Appasaheb Marathe Marg,

Prabhadevi,

Mumbai 400025

TEL : 66169000

FAX : 66279240


WEB: www.gsam.in

MF/058/08/03 26.08.2008

18.

HDFC Mutual Fund,

Ramon House, 3rd Floor,

169, Backbay Reclamation,

Churchgate,

Mumbai 400 020.

TEL : 22029111

FAX: 22028862

WEB : www.hdfcfund.com

MF/044/00/6 30.6.2000

19.

HSBC Mutual Fund,

314 D N Road, Fort,

Mumbai 400 001.

TEL : 66145000

FAX: 40029600


MF/046/02/5 27.5.2002

20.ICICI Securities Fund,

ICICI Towers, 7th Floor,MF/043/00/3 28.3.2000


25/89

25

North Block,

Bandra-Kurla Complex,

Mumbai 400 051.

TEL : 6531414 / 6538988 (D)

FAX : 6531063 / 6531178

21.

IIFL Mutual Fund

IIFL Centre, 3rd Floor Annex,

Kamala City, Senapati Bapat Marg,

Lower Parel, Mumbai-400013

Tel : 42499000

Fax : 40609049

Web: indiainfoline.com

MF/067/11/2 23.3.2011

22.

Indiabulls Mutual Fund

One Indiabulls Centre, Tower 2,

Basement,

Jupiter Mills, Fitwala Road,

Near Sai Mandir, Opposite Deepak

Talkies,

Elphinstone Road, Mumbai 400013

Tel: 30439414

Fax: 39805325

MF/068/11/3 24.3.2011

23.

ING Mutual Fund,

Unit No. 101,

601/606, 6th Floor,

Windsor,

Off. C.S.T. Road,

Vidyanagari Marg,

Kalina, Santacruz (East),

Mumbai 400 098

TEL : 022-39827999

Toll Free : 18004255433

FAX : 022-26500248


MF/040/99/5 11.2.1999


26/89

26

WEB : www.ingim.co.in

24.

ICICI Prudential Mutual Fund

2nd Floor, 302, Block B-2,

Nirlon Knowledge Park,Western Express Highway,

Mumbai - 400063.

Tel No. +9122 42090573

Registered Office :

12th Floor, Narain Manzil,

23, Barakhamba Road,

New Delhi 110 001

WEB : www.pruicici.com

MF/003/93/6 13.10.1993

25.

IDBI Mutual Fund

5th Floor, Mafatlal Centre,

Nariman Point,

Mumbai 400 021.

Tel.: 66442800

Fax: 66442801

E-mail:

[email protected]

www.idbimutual.co.in

MF/064/10/01 29.3.2010

26.

IDFC Mutual Fund,

One IndiaBulls Centre,

841, Jupiter Mills Compound,

Senapati Bapat Marg,

Elphinstone Road (West),

Mumbai 400 013.

TEL : 22621111

FAX : 22693365


WEB : www.idfcmf.com

MF/042/00/3 13.3.2000

27.JM Financial Mutual Fund

502, 5th Floor, A Wing,MF/015/94/8 15.9.1994


27/89

27

Laxmi Towers, Bandra Kurla Complex,

Mumbai - 400051

TEL : 39877777

FAX : 26528377-78

WEB : www.JMFinancialmf.com


28.

JP Morgan Mutual Fund

J.P. Morgan Towers,

Off C.S.T. Road, Kalina,

Santacruz - East

Mumbai 400 098

TEL : 6157 3000

FAX : 6157 4170

WEB : www.jpmorganmf.com


MF/053/07/01 08.02.2007

29.

Kotak Mahindra Mutual Fund,

Kotak Towers, 6th Floor,

Bldg. No. 21, Infinity Park,

Gen. A. K. Vaidya Marg,

Malad (E), Mumbai 400 097

TEL : 66384444

FAX : 66384455

WEB : www.kotakmutual.com

MF/038/98/1 23.6.1998

30.

KJMC Mutual Fund,

168, Atlanta,

16th Floor,

Nariman Point

Mumbai 400 021

TEL : 22885201/22832350

FAX : 22852892


MF/041/99/4 28.4.1999

31.LIC Nomura Mutual Fund

Industrial Assurance Bldg.,MF/012/94/5 9.5.1994


28/89

28

4th Floor, Opp Churchgate Stn.,

Mumbai 400 020.

TEL : 22851661/22851663

FAX : 22040039

WEB : www.licmutual.com

32.

L&T Mutual Fund

309, Trade Centre, 3rd Floor,


Bandra (East),

Mumbai - 400 051.

MF/035/97/9 3.1.1997

33.

Morgan Stanley Mutual Fund

19th Floor, One Indiabulls Centre,

Tower 2, Jupiter Mils Compound,

841, Senapati Bapat Marg,

Elphinstone Road, Mumbai - 400 013.

TEL : 61181000

FAX : 61181027

WEB : www.morganstanley.com/indiamf

MF/005/93/1 5.11.1993

34.

Mirae Asset Mutual Fund

Unit 606, 6th Floor, Windsor,

Off CST Road, Kalina, Santacruz (E),

MUMBAI 400 098

TEL : 67800300

FAX : 6725 3942 / 45

Email :

[email protected]

WEB : www.miraeassetmf.co.in

MF/055/07/03 30.11.2007

35.

Motilal Oswal Mutual Fund

81/82, 8th Floor,

Bajaj Bhawan,


Tel: 39804200

MF/063/09/04 29.12.2009

36. Peerless Mutual Fund MF/062/09/03 04.12.2009


29/89

29

Peerless Mansion,

1 Chowringhee Square,

Kolkata-700069

TEL : 033-22435496

FAX : 033-22435339

37.

Pramerica Mutual Fund

Nirlon House, 2nd Floor,

Dr. Annie Besant Road,

Worli, Mumbai- 400025

TEL: 022- 61593000

FAX: 022- 61593100

MF/065/10/02 13.5.2010

38.

Principal Mutual Fund

Exchange Plaza, 2nd Floor,

B Wing, NSE Building,


Bandra(East)

Mumbai 400051.

TEL : 67720555

MF/019/94/0 13.12.1994

39.

Quantum Mutual Fund,

505, 5th Floor,

Regent Chambers,

Nariman Point,

Mumbai 400021

TEL : 22830322

FAX : 22854318

WEB : www.quantumamc.com

MF/051/05/02 02.12.2005

40.

Reliance Mutual Fund

One India Bulls Centre, Tower 1,

11th 7 12th Floor, Jupiter Mills

Compound,

841 Senapati Bapat Marg,

Elphinstone Road, Mumbai 400 001.

TEL : 30287168

MF/022/95/1 30.6.1995


30/89

30

FAX : 30414885

WEB: www.reliancemutual.com

Email:[email protected]

om

41.

Religare Mutual Fund

3rd Floor, GYS Infinity,

Paranjpe B Scheme,

Subhash Road, Vile Parle (East),

Mumbai 400 057.

TEL : 67310000

FAX : 28371565

MF/052/06/01 24.07.2006

42.

Sahara Mutual Fund,

9th Floor, 97-98

Atlanta Building

Nariman Point

Mumbai 400 021

Tel : 22-6752 0121 27

Fax : 66547855

WEB : www.saharamutual.com

Email:

[email protected]

MF/030/96/0 1.10.1996

43.

SBI Mutual Fund

191, Maker Towers "E"

Cuffe Parade

Mumbai 400005

TEL : 22180221-25,27

FAX : 22189663

WEB : www.sbimf.com

MF/009/93/3 23.12.1993

44.

Shriram Mutual Fund

106, Shiv Chambers, 1stFloor,

B Wing Sector - 11,

C.B.D.Belapur,

Navi Mumbai 400 614.

MF/017/94/4 21.11.1994


31/89


32/89

32

Fax: 2483 3401

Web: www.unionkbc.com

49.

UTI Mutual Fund

UTI Towers,Gn Block, Bandra-Kurla Complex,

Bandra (East),

Mumbai 400 051

TEL : 56786666

FAX : 56786578

WEB : www.utimf.com

MF/048/03/1 14.01.2003

The turnover in the Indian equity markets (BSE and NSE combined) registered a

strong 46% growth in FY10-11 (36% CAGR over the last 5 year). However, the

markets have witnessed a structural change over the last few quarters with a decline

in the higher yielding cash volume and a sharp rise in the lower yielding options

volume. On the back of sustained high competitive environment and the change in

trading pattern, the blended broking yields declined in FY11 leading to only a

moderate growth in broking revenues. However, expenses increased sharply with

higher employee costs and costs associated with building capacities in existing as

well as new business lines. Consequently the brokerage houses profitability

declined in FY10-11.

Some of the larger brokerage houses have reasonably well diversified revenue

streams but still remain largely vulnerable to capital markets environment. Given the

current challenging outlook for the equity markets over the short term, ICRA expects

pressures on the revenue growth over the next few quarters and consequently the

overall profitability indicators.


33/89

33

Strong Growth In Options Trading Drive Industry Broking Volumes In FY11

The domestic equity brokerage turnover (BSE and NSE combined) registered an

increase of 46% in FY10-11 to Rs 339 lakh crore led by a sharp 127% growth in the

options segment2. The derivatives segment contributed to 86% of the overall

turnover in FY11 as compared to 76% in FY10 while the options segment accounted

for 58% in FY11 (37% in FY10) and futures segment for 29% during the same period

(39% in FY10). Within the Options segment, the index option based on NIFTY alone

accounted for nearly 95% of the total options volume, providing adequate liquidity

and further fueling investor appetite. The strong growth of the options segment may

be partly attributable to the fact that beginning FY09, the brokerage and Securities

Transaction Tax (STT) in the options segment are charged on the premium portion

and not on the entire open interest. The activity levels were further supported by the

increasing comfort of traders/investors dealing with these products coupled with

higher participation in the Indian equities market by sophisticated investors such as

Foreign Institutional Investors (FIIs). While the FII participation increased to 15% in

FY11 form 12% in FY10 and the proprietary trading segment participation declined to

22% from 26%, the Retail and Domestic Institutional Investor participation remained

stable at around 56% and 7%, respectively in the same period.

Chart 1.1: Equity Broking Turnover Year wise


34/89

34

The year-on-year changes in the brokerage volumes at the exchanges have been

quite volatile indicating the inherent volatile nature of the capital markets. The

average daily turnover3 in the equities segment stood at Rs 1.32 lakh crores

witnessing a growth of 38% in FY11. As the number of trading days was higher in

FY11 than in FY10, the rise in the total volumes at the exchanges is higher than the

rise in the average daily turnover.

Chart 1.2: Y-o-Y growth Equity Brokerage Turnover

However the more lucrative cash market volumes continue to fall

Equity brokerage volumes in the cash market have seen a continuous decline from

its peak in Q2FY10 with the average daily trading volumes (BSE and NSE

combined) in the cash segment at Rs 16,115 crores in Q4FY11 as compared to Rs

24,085 crores in Q2FY10. Accordingly, the share of the cash segment at the

exchanges declined from 26% in Q2FY10 to ~10% in Q4FY11. In Q4FY11, the

options segment contributed to 65% of the total turnover while the futures segment

contributed the balance 25%. The total volumes declined in Q1FY12 with further fall

in the proportion of cash trades.


35/89

35

Chart 1.3: Equity Brokerage Turnover Quarter wise

In terms of trading activity in the market, it declined in the cash segment with both

decline in the number of trades and the trade size at the NSE and BSE. The average

trade size declined 7.3% y-o-y and stood at Rs 22,365 in FY11 as compared to Rs

24,115 in FY10.

Chart 1.4: Total number of trades cash segment


36/89

36

LITERATURE REVIEW

WHAT IS A MUTUAL FUND

Mutual fund is a mechanism for pooling the resources by issuing to the investors and

investing funds in securities in accordance with objectives as disclosed in offer

document.

Investments in securities are spread across a 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 quantum of money

invested by them. Investors of mutual funds are known as unit holders.

The profits or losses are shared by the investors in proportion to their investment.

The mutual funds normally come out with a number of schemes with different

investment objectives which are launched from time to time. 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 public.

Mutual fund is a collection of stocks and / bonds. A mutual fund as a company brings

together a group of people and invests their money in stocks, bonds and other

securities. Each investor owns shares, which represent a portion of the holdings of

the fund.

With increased uncertainties or fluctuations in the primary market and decreasing

bank interest rates, mutual funds are gaining popularity day by day Now-a- days

mutual funds are performing well will high returns to the investors. There are various

types of schemes and plans available to all type of investors.

Let us assume that you inertia million rupees over night and want to invest the same

to get better returns you can consider the following investment avenues that are

popular in Indian context


37/89

37

Company shares

Fixed deposits in banks

Government bonds

Fixed deposits in NBFC

Chit fund

Real estate

Other local money lending options

Types of Funds:

Mutual funds also come in various sizes and shapes. There are about dozen fund

classes but all of them are derivatives of three basic classes are as follows.

Growth

Income

Liquidity

Growth: Long term growth, since these funds invest in equities, they are also

called as equity funds. Their risk level is high so is the return.

Income: This type of fund provides regular income by investing in debt instruments

like bonds, debentures etc., Because of their nature of investment, they are also

called debt schemes. Their risk and return levels are medium.

Liquidity: These are primarily invested in money market instruments and thus

most volatile, safer and give lower returns. These funds are also known as cash or

money market funds.


38/89

38

Table 2.1 Pros and cons of the investments:

SNO.Investment

Avenue

Risk Return

Effort required to

track/maintain

investment

1.Company shares

and stocksHigh High High

2.Fixed deposits in

banksLow Low Low

3. Govt. bonds Medium Medium Medium

4.Fixed deposits in

NBFCHigh Medium Medium

5. Chit funds High Medium Medium

6. Real estate Medium Medium Medium

7.Other money

lending optionsMedium Medium Depends

Table 2.2 Funds allocation

Funds Invest in Area

Balanced fundIs an investment blend of equity and debt

Instruments

Index fund

Invest in the company that Participates in

stock market indices in the same weight

age comprising of an index

Sector fund

Invests in companies pertaining to

specific sectors like health care, banking,

FMCG, technology etc

Ells / Tax funds

Invest in government bonds and

generally long term in nature. They

provide tax benefits.


39/89


40/89

40

Table 2.4 International Funds:

These funds are invested in both domestic and overseas operations.

OBJECTIVE TYPETIME

PERIODRISK

PROFILEEQUITY

(%)DEBT(%)

MONEYMARKETINST. /

OTHERS(%)

Money Market Open Ended

Short

Term Low 0 0-20 80-100

Income Open Ended

Medium

Long

Term

Low to

Medium0 80-100 0-20

Growth Open Ended Long

TermHigh 80-100 0-20 0-20

Balanced Open EndedLong

Term

Medium

to High0-60 0-40 0-20

Tax Saving Open EndedLong

TermHigh 80-100 80-100 0-20


41/89

41

Reasons for the Advantages:

Security and reduced risk.

Availability of expert advice of professional management.

Diversification of portfolio for best returns.

Automatic investment of returns.

Best selection and timing of investment through professional approach.

Liquidity of investment.

Such invest promote savings habit.

Tax shelter from various taxes.

Safety because for government regulation.

Economies of scale, which maximize returns and minimizes cost.

Saving schemes of mutual funds.

Reasons for Rise and Downfall of Price:

1. Government policies

2. Natural calamities

3. Management of performance

4. Internal and external factor

5. Political reasons

BENEFITS OF INVESTING IN MUTUAL FUNDS

Its seems strange to compare mutual funds to stocks since mutual funds are

primarily composed of stocks, but it is important to distinguish the two because there

are some notable advantages to using mutual funds.


42/89

42

Professional Management:

Mutual funds provide the services of experienced and skilled professionals, backed

by a dedicated investment research team that analyses the performance andprospects of companied and selects suitable investments to achieve the objectives

of the scheme.

Diversification:

Mutual funds invest in a number of companies across a broad cross-section of

industries and sectors. This diversification reduces the risk because seldom do allstocks decline at the same time and in the same proportion. You achieve this

diversification through a Mutual Fund with far less money than you can do on your

own.

Convenient-Administration:

Investing in a Mutual fund reduces paperwork and helps avoid many problems suchas bad deliveries, delayed payments and follow up with brokers and companies.

Mutual funds save your time and make investing easy and companies. Mutual funds

save your time and make investing easy and convenient.

Return Potential:

Over a medium to long-term, Mutual funds have the potential to provide a higherreturn as they invest in a diversified basket of selected securities.

Low-Costs:

Mutual Funds are a relatively less expensive way to invest compared to directly

investing in the capital markets because the benefits of scale in brokerage, custodial

and other fees translate into lower costs for investors.


43/89

43

Liquidity:

In open-end schemes, the investor gets the money back promptly at net asset value

related prices from the Mutual fund. In closed-end schemes, the units can be sold ona stock exchange at the prevailing market price or the investor can avail of the facility

of direct repurchase at NAV related prices by the Mutual Fund

Transparency:

You get regular information on the value of your investment in addition to disclosure

on the specific investments made by your scheme, the proportion invested in eachclass of assets and the fund mangers investment strategy and outlook.

Flexibility:

Through features such as regular investment plans, regular withdrawal plans and

dividend reinvestment plans, you can systematically invest or withdraw fundsaccording to your needs and convenience.

Affordability:

Investors individually may lack sufficient funds to invest in high grade stocks. A

Mutual fund because of its large corpus allows even a small investor to take the

benefit of its investment strategy.

Choice of Schemes:

Mutual Funds offer a variety of schemes that will suit your needs over a life time.

When you enter a new stage in your life, all you need to do is sit down with your

investment advisor who will help you to rearrange your portfolio to suit your altered

lifestyle.


44/89


45/89

45

TYPES OF RISKS

All investment involves some form of risk. Even an insured bank account is subject

to the possibility that inflation will rise faster than your earning, leaving you with less

real purchasing power than when you started (Rs. 1000 gets you less than it got your

father when he was your age). Consider these common types of risk and evaluate

them against potential rewards when you select an investment.

Market Risk:

At times the prices or yields of all the securities in a particular market rise or fall due

to broad outside influence. When this happen, the stock prices of both an

outstanding, highly profitable company and a fledgling corporation may be affected.

This change in price is due to market risk.

Inflation Risk:

Sometimes referred to as loss of purchasing power. Whenever inflation sprints

forward faster than earnings on your investment, you run the risk that youll actual be

able to buy less, not more. Inflation risk also occurs when prices rise faster than your

returns.

Credit Risk:

In short, how stable is the company or entity to which you lend your money when you

invest. How certain are you that it will able to pay the interest you are promised, or

repay your principal when the investment matures?

Interest Risk:

Changing interest rates affect both equities and bonds in many ways. Investors are

reminded that predicting which way rates wick go is rarely successful. A diversified

portfolio can help in offsetting these changes.


46/89


47/89


48/89

This plan may suit Retire

regular income

Step Four - Invest regular

fixed amount at specific in

month, you buy fewer units

low, thus bringing down

averaging and is a discipli

world. With many open-en

regular investing habit is m

Step Five - Keep your ta

Distribution made by mut

investor. Further, there ar

under the provisions of th

advisor or Chartered Ac

efficiency by investing in M

30%

Growth Scheme In

48

Chart 2.2 Conservative plan

& other investor who needs to preser

ly for most of, the approach that works

tervals, say every month. By investing

when the price is higher and more units

your average cost per unit. This is c

ed investment strategy followed by inv

ded schemes offering systematic inve

ade easy for you.

es in mind as per the current tax laws,

ual funds is exempt from Income Tax

other benefits available for investment

prevailing tax laws. You may therefor

ountant for specific advice to achie

utual Funds

10%

50%

10%

Conservative Plan

comeScheme Money market Scheme Balan

e capital & earn

est is to invest a

fixed sum each

when the price is

alled rupee cost

stors all over the

tment plans, this

Dividend/Income

in the hands of

in Mutual Funds

consult your tax

e maximum tax

ed Scheme


49/89

49

Step Six- Start early It is desirable to start investing early and stick to a regular

investment plan. If you start now, you will make more than if you wait and invest

later. The power of compounding lets you earn income on income and your money

multiplies at a compounded rate of return.

Step Seven -The final step all you need to do now is to get in touch with a Mutual

Fund or your agent/broker and start investing. Reap the rewards in the years to

come. Mutual Funds are suitable for every kind of investor-whether starting a career

or retiring, conservative or risk taking, growth oriented or income seeking.

RIGHTS FOR A MUTUAL FUND HOLDER

As a unit holder in a Mutual Fund scheme coming Under the SEBI (Mutual Funds)

Regulations, you are entitled to:

1. Receive unit certificates or statements of accounts confirming your title within 30

days from the date of closure of the subscription under open-end schemes or within

6 weeks from the date your request for a unit certificate is received by the Mutual

Fund.

2. Receive information about the investment policies, investment objectives, financial

position and general affairs of the scheme.

3. Receive dividend within 30 days of their declaration and receive the redemption or

repurchase proceeds within 10 days from the date of redemption or repurchase.

4. Vote in accordance with the Regulations to change the Asset Management

Company, wind up the schemes.

5. Inspect the documents of the Mutual Funds specified in the scheme's offer

document. In addition to your rights, you can expect the Following from mutual fund.

To publish their NAV, in accordance with the regulations daily in case of open-ended

schemes and once a week, in case of close ended schemes. To disclose your

schemes' entire portfolio twice a year, unaudited financial results half yearly and

audited annual accounts once a year. In addition many mutual funds send out

newsletters periodically. To adhere to a Code of Ethics which require that investment

decisions are taken in the best interests of the unit holders.


50/89


51/89

51

RESEARCH METHODOLOGY:

To fulfill the objective of the study both primary and secondary data has been

collected. Primary data is the data collected specifically for the study. Data is

collected directly from people and organizations via surveys before being analyzed

to reach conclusions concerning the issues covered in the survey.

In this study primary data was collected through interaction with staff of FUTURE

CAPITAL SECURITIES LTD.

Secondary data is the data collected which can be analyzed and interpreted

according to requirements. For example, sources of secondary data are government

publications, newspapers, World Wide Web.

In this study the Secondary data is mainly taken from

The companys training material.

Reconciliation statements

Other documents generated within the organization


52/89

52

CHAPTER 4

DATA COLLECTION

ANALYSIS

INTERPRETATION


53/89

53

DATA COLLECTION:

The Methodology used for collecting information is through secondary data. Source

Of data: Collecting the data from the Funds Fact sheet, data sheets and World Wide

Web. Various Websites has given information of their Latest NAV (NET ASSEST

VALUE), Portfolio and assets allocation of each Mutual Fund.

Limitations of the study:

1. The main limitation of Mutual Fund is that it takes time to invest money.

Unfortunately most mutual Funds receive money when markets are in boom phase

and investors are willing to try out Mutual Funds.

2. Since it is difficult to invest all Funds in one day there is some money waiting to be

invested. Further, there may be a time lag between investment opportunities are

identified.

3. The other limitation of a Mutual Fund is the trading limitation, where the Funds are

highly liquid in general most Mutual Funds (called open-ended Funds) cannot be

bought or sold in the middle of the trading day. Investors can only buy and sell them

at the end of the day, after they have calculated value of their holdings.

4. The portfolios of the Funds do not remain constant. The extent to which the

portfolios changes is a function of the style of the individual Fund manager.

5. It is also dependent of the volatility of the Fund size, i.e. whether the Fund is

constantly receives fresh subscriptions and redemptions.


54/89

ANA

ANALYSIS OF MUTU

Mutual funds of the type

and subject to market risk

where the trend of the e

RELIANCE MUTUAL FUN

Axis Bank was the first of

after the Government of I

Bank was promoted jointly

Unit Trust of India (UTI - I

Insurance Corporation of I

National Insurance Comp

Oriental Insurance Comp

Bank as on 31st March, 2

public holding (other than p

The Bank's Registered Of

Mumbai. The Bank has a

169 Service Branches/CP

over 6270 ATMs (as on

convenience to its custom

54

YSIS & INTERPRETATION

L FUND SCHEMES:

quity are analyzed in the study, equity

s, analysis is conducted from 30-04-201

uity funds of various AMCs AXIS BA

, FRANKLIN TEMPLTON funds are stu

1. AXIS MUTUAL FUND:

the new private banks to have begun o

ndia allowed new private banks to be

by the Administrator of the specified u

I), Life Insurance Corporation of India (

ndia (GIC) and other four PSU insuranc

ny Ltd., The New India Assurance Co

ny Ltd. and United India Insurance C

11 is capitalized to the extent of ` 410.

romoters and GDRs) at 53.60%.

ice is at Ahmedabad and its Central O

ery wide network of more than 1281 br

s as on 31st March, 2011). The Bank

31st March, 2011) providing 24 hrs

rs. This is one of the largest ATM netwo

funds are volatile

2 to 14-06-2012,

K, ICICI BANK,

ied.

erations in 1994,

established. The

ndertaking of the

IC) and General

e companies, i.e.

mpany Ltd., The

mpany Ltd. The

4 crores with the

fice is located at

nches (including

has a network of

a day banking

ks in the country.


55/89

55

Table 3.1 KEY INFORMATION

Mutual Fund Axis Mutual Fund

Setup Date Sep-04-2009

Incorporation Date Jan-13-2009

Sponsor Axis Bank Limited

Trustee Axis Mutual Fund Trustee Limited

Chairman Dr. T. C. Nair

CEO / MD Mr. Rajiv Anand

CIO Mr. Chandresh Nigam

Compliance Officer Mr. Miten Chawda

Assets Managed Rs. 8814.94 crore (Mar-31-2012)

Table 3.2 Scheme Highlights

Mutual Fund Axis Equity Fund

Scheme Name Axis Equity Fund

Scheme Type Open Ended

Scheme Category Growth

Launch Date 11-NOV-09

Indicate Load Separately 2.25%

Minimum Subscription Amount Rs. 5,000/-


56/89

56

Table 3.3 Investment Pattern

The asset allocation under the Scheme will be as follows

S.No Asset type Normal allocation %

1. Equities & equity related instruments 93.35

2. Debt & Money market instruments 6.65

Scheme Objective:

To achieve long term capital appreciation by investing in a diversified portfolio

predominantly consisting of equity and equity related securities including derivatives.

Investment in derivatives up to 50% of the net assets of the scheme, investments in

securities lending unto 35% of the net assets of the scheme, investment in foreign

debt instruments unto 35% of the net assets of the scheme, includes investment in

ADR and GRAs issued by companies in India/equity of listed overseas companies as

permitted by SEBI regulations unto 50% of net assets of the scheme.

The scheme shall seek to generate long-term capital growth from an actively

managed portfolio of predominantly equity and equity related instruments. The

scheme portfolio would acquire, interalia, small and medium size businesses with

good long term penitential, which are available at cheap valuations. Such securities

would be identified through disciplined fundamental research keeping in view

medium to long-term trend in the business environment. The scheme shall endeavor

to accumulate long-term investor wealth by opening subscriptions to units during

periods when stocks are available at reasonable valuations. By doing so, the fund

managers would endeavors to prevent short-term money from flowing into the fund

which can prove detrimental to the interests of long-term investor. As the scheme

would be sold to investors with a long-term investment horizon, it is also expected

that the portfolio would remain relatively more insulated to day to day redemption

pressures. The fund will close subscription, once it has collected a predetermined

manageable corpus (approximate amount), which will be decided by the fund


57/89

57

manager of the scheme depending on the available investment opportunities in the

stock market / if the fund manager is of the opinion that investment opportunities

have diminished. Thus the fund manager will endeavor to ensure that there are

sufficient assts available to meet the long-term objectives of the fund.

Table 3.4 Absolute returns

Year Qtr 1 Qtr 2 Qtr 3 Qtr 4 Annual

2012 12.4 - - - -

2011 -7.2 -0.4 -10.5 -5.3 -22.8

2010 3.4 2.5 13.0 -2.7 17.7

Table 3.5 Absolute Annualized Returns of Axis Equity Fund

1 Month 3 Months 6 Months 1 Year Inception

Absolute 3.78 3.33 9.00 -4.69 0.69

Relative to

Sensex0.28 2.57 2.52 2.99 2.63

Relative to

Nifty-0.01 3.04 1.21 2.00 1.96

Table showing Absolute Annualized Returns of Axis Equity Fund


58/89

58

Chart 3.1 showing Absolute Annualized Returns of Axis Equity Fund

INTERPRETATION:

It is seen that the absolute annualized returns is 3.78 which has grown from 0.69

from its Inception. This reveals that the returns are increased despite going negative

a year ago it has kept the investors satisfied with expected returns. So that I

conclude its a growing performer.

-6

-4

-2

0

2

4

6

8

10

Inception 1 Year 6 Months 3 Months

Annualized Returns

Absolute Relative to Sensex Relative to Nifty


59/89

Table3.6

EQUITY

ITC

RELIANCE

TCS

HDFC BANK

ICICI BANK

INFOSYS

SBI

LARSEN

TATA MOTORS

HDFC

Chart 3.

I

SBI

LARSEN

TATA MOTORS

59

Top Holdings (31st

May 12) Equit

Sector

Tobacco

Oil & Gas

Technology

Banking/Finance

Banking/Finance

Technology

Banking/Finance

Engineering

Automotive

Banking/Finance

Showing Portfolio and assest

ITC

RELIANCE

TCS

HDFC

BANKICICI BANK

NFOSYS

HDFC

PORTFOLIO

y

Asset %

6.25

6.25

6.15

6.04

6.00

5.38

4.90

3.80

2.86

6.24


60/89

Table 3.

SECTOR

METALS & MINING

BANKING/FINANCE

TECHNOLOGY

OIL & GAS

AUTOMOTIVE

PHARMACEUTICAL

Chart

21%

12%

10%

60

7 Sector Allocation (31st

May 12)

%1-

High

7.83 9.23

26.17 26.17

14.55 14.76

8.42 9.53

7.34 8.24

6.67 7.77

3.3 Showing Sector Allocation

11%

37%

9%

SECTOR ALLOCATION

ear

Low

3.83

21.83

9.33

6.34

1.44

5.38

METALS & MINING

BANKING/FINANCE

TECHNOLOGY

OIL & GAS

AUTOMOTIVE

PHARMACEUTICALS


61/89

61

Table 3.8 Asset Allocation (%) Table 3.9 Concentration

Equity 92.03

Others 1.33

Debt 0.00

Mutual Funds N.A

Money Market 0.00

Cash / Call 6.65

Table 3.10 Returns (NAV)

PERIOD Returns (%) Rank #

1 MONTH 3.7 54

3 MONTH -2.5 11

6 MONTH 9.7 42

1 YEAR -1.6 27

2 YEARS -2.9 51

Holdings (%)

Top 5 30.93

Top 10 53.87

Sector (%)

Top 3 49.14


62/89

62

Chart 3.4 Showing Returns (NAV)

INTERPRETATION:

It is seen that the returns 2 Years ago is -2.9% which has to increased drastically9.7% during past 6 months. This tells us that the fund is increasing considerably

good with returns of 3.7% on March 31, 2012.

-4

-2

0

2

4

6

8

10

12

2 Years 1 Year 6 Months 3 Months 1 Month

RETURNS

RETURNS


63/89

2. ICICI

Managed by ICICI Prudent

Fund is a joint venture bet

is one of the largest player

Bank, on the other hand

Prudential Plc is a domin

operations spread across

banking products and fin

through different delivery

investment banking, life

management. ICICI Prud

investment solutions rangi

Income, Real Estate, and

Ta

Mutual Fund

Setup Date

Incorporation Date

Sponsor

Trustee

Chairman

CEO / MD

63

PRUDENTIAL MUTUAL FU

ial Asset Management Company, ICICI

een Prudential Plc and ICICI Bank. W

s in insurance and fund management se

, is Indias second largest bank in th

ant player in international financial ser

sia, the US, and the UK. ICICI Bank pr

ncial services to both corporate and

channels and specialized subsidiaries

and non-life insurance, venture ca

ntial Mutual Fund offers plenty of ret

ng in a variety of asset classes, nam

old.

ble 4.1 KEY INFORMATION

ICICI Prudential Mutual Fun

Oct-13-1993

Jun-22-1993

Prudential Plc and ICICI Ban

ICICI Prudential Trust Ltd

Ms. Chanda Kochhar

Mr. Nimesh Shah

D:

Prudential Mutual

ile Prudential Plc

ctors in UK, ICICI

e private sector.

ices group, with

ovides numerous

retail customers

in the areas of

pital, and asset

il and corporate

ly, Equity, Fixed

k Ltd.


64/89

64

CIO Mr. S Naren

Compliance Officer Ms. Supriya Sapre

Investor Service Officer Ms. Kamaljeet Saini


Table 4.2 Scheme highlight:

Mutual Fund ICICI Prudential Mutual Fund

Scheme NameICICI Prudential Equity & Derivatives

Fund-Wealth Optimiser Plan

Scheme Type Open Ended


Launch Date 8-Nov-06

Minimum Subscription Amount Rs.5000/-

Fund manager Mrs.Deven sangoi

Objective of Scheme: The investment objective of Wealth Optimiser Plan under the

scheme is to seek to provide capital appreciation and income distribution to the

investors by using equity derivatives strategies, arbitrage opportunities and pure

equity investments. The investment objective of the scheme is to seek to generate

low volatility returns by using arbitrage and other derivative strategies in equity

markets and investments in short-term debt portfolio.


65/89

65



2012 2.2 - - - -

2011 2.5 2.0 1.5 1.6 7.9

2010 0.9 1.0 2.1 2.6 6.6

2009 1.5 1.2 1.4 -0.5 4.3

2008 2.4 1.8 1.6 2.5 8.4

2007 2.5 4.2 1.8 1.7 10.9

Chart 4.1 showing absolute returns of ICICI

INTERPRETATION:

It is seen that the absolute annualized returns is 7.9 which has decline from 10.9

from its Inception. This reveals that the returns are increased steadily despite going

negative a year ago it has kept the hopes to investors with expected increase inreturns. So that I conclude its a re-gaining performer.

10.9

8.4

4.3

6.6

7.9

0

2

4

6

8

10

12

2007 2008 2009 2010 2011

ANNUAL RETURNS ANNUAL RETURNS


66/89

Table

EQUITY

ABG SHIPYARD

BHARAT FORGE

PANTALOON RET

TATA POWER

STERLITE IND

BALRAMPUR CHINI

BAJAJ AUTO

POWER GRID CORP

TATA GLOBAL BEV

Chart 4.

10%

10%

10%

8%

66

4.4 Top Holdings (31st

May 12)

Sector

Services

Manufacturing

Retail & Real Estate

Utilities

Metals & Mining

Food & Beverage

Automotive

Utilities

Food & Beverage


18%

13%

13%

12%

6%

PORTFOLIO

Asset %

8.18

5.98

5.90

5.68

4.86

4.70

4.59

3.87

2.94

ABG SHIPYARD

BHARAT FORGE

PANTALOON RET

TATA POWER

STERLITE IND

BALRAMPUR CHINI

BAJAJ AUTO

POWER GRID CORP

TATA GLOBAL BEV


67/89

Table 4.

Sector

Metals & Mining

Utilities

Services

Automotive

Food & Beverage

Manufacturing

Chart

27%

14%

67

5 Sector Allocation (31st

May 12)

%1-

High

9.62 16.26

9.55 11.35

8.18 11.90

15.12 15.12

7.64 7.64

5.98 6.17


17%

17%

14%

11%

SECTOR ALLOCATION

ear

Low

2.94

4.25

3.85

5.93

1.73

2.62

Metals & Mining

Utilities

Services

Automotive

Food & Beverage

Manufacturing


68/89

68


Equity 64.90

Others 0.00

Debt 4.52

Mutual Funds N.A

Money Market 0.00

Cash / Call 30.57

Table 4.8 Returns (NAV as on Jun-15-2012)

PERIOD Returns (%) Rank #

1 MONTH 0.9 7

3 MONTH 3.3 1

6 MONTH 5.4 5

1 YEAR 8.3 12

2 YEARS 8.9 1

3 YEARS 7.0 1

5 YEARS 7.2 4

Holdings (%)

Top 5 36.27

Top 10 57.23


69/89


70/89


71/89

71


Launch Date 6-Feb-06

Minimum Subscription Amount Rs 5000/-

Fund manager Mr. SUNIL SINGHANIA

Objective of Scheme:

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

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

constituted of equity & equity related securities of top 100 companies by market

capitalization & of companies which were available in the derivatives segment from

time to time and the secondary objective is to generate consistent returns by

investing in debt and money market securities



2012 21.2 - - - -

2011 -7.3 2.7 -8.8 -8.5 -21.8

2010 5.5 - - - 5.5

2009 -6.4 47.5 27.4 -0.2 103.8

2008 -31.8 -14.2 -1.3 -21.2 -56.0

2007 - - 8.5 26.1 37.6


72/89

72

Chart 5.1 Showing Annual Returns

INTERPRETATION:

It is seen that the absolute annualized returns is 37.6 which is declined to -5.6 in

2008 but an outstanding regain in the year 2009 with returns of 103.8. This reveals

that the returns are increased despite going negative a year ago but it has not kept

the momentum and dropped drastically to -21.8. So that I conclude its a below

average performer fund.

Table 5.4 Top Holdings (31st May 12)

Equity Sector Asset %

Divis Labs Pharmaceuticals 7.11

SBI Banking/Finance 6.44

Infosys Technology 4.43

ICICI Bank Banking/Finance 3.88

Trent Retail & Real Estate 3.57

37.6

-56

103.8

5.5

-21.8

-100

-50

0

50

100

150

2007 2008 2009 2010 2011

ANNUAL RETURNS ANNUAL RETURNS


73/89

Maruti Suzuki

Aventis Pharma

Hathway Cable

Larsen

Persistent

Chart 5.

9%

9%

9%

8%

73

Automotive

Pharmaceuticals

Media

Engineering

Technology


18%

17%

12%10%

8%

PORTFOLIO

3.53

3.30

3.22

2.91

2.84

Divis Labs

SBI

Infosys

ICICI Bank

Trent

Maruti Suzuki

Aventis Pharma

Hathway Cable

Larsen


74/89


75/89

75


Equity 87.72

Others 8.03

Debt 0.00

Mutual Funds N.A

Money Market 0.00

Cash / Call 4.24


Period Returns (%) Rank #

1 month 3.3 52

3 month -0.3 4

6 month 18.9 1

1 year 0.9 4

2 years - 45

3 years -22.8 89

Holdings (%)

Top 5 25.43

Top 10 41.23


76/89

76

Chart 5.4 Showing NAV Analysis of RELIANCE Equity Fund

INTERPRETATION:

It is seen that the returns of past 3 Years is -22.8% which has to increased

consistently for 2 Years by reaching 18.9% 6 months ago and there after it has not

performed as expected by declining to -0.3% a month ago. This tells us that the fund

is decreased drastically; this fund is performing very low but expected to grow, Its a

average performing fund.

-22.8

0.9

18.9

-0.3

3.3

-25

-20

-15

-10

-5

0

5

10

15

20

25

3 Years 1 Year 6 Months 3 Months 1 Month

Returns (%)

Returns %


77/89

4. Fr

Franklin Templeton's asso

investor. As part of the gro

the India office was set u

Limited. It flagged off the

Growth Fund in September

pace.

In July 2002, Franklin Te

house in India to create an

cycles, one of the most

country and an in-house

existed in the two organiz

catapulting the company to

Ta

Mutual Fund

Setup Date

Incorporation D

Sponsor

Trustee

77

nklin Templeton Mutual Fun

iation with India dates back to more tha

p's major thrust on investing in markets

p in 1996 as Templeton Asset Manag

utual fund business with the launch of

1996, and since then the business has

pleton India acquired Pioneer ITI, ano

organization with rich investment experi

comprehensive product portfolios, foo

shareholder servicing function. The hu

ations have helped the business grow

among the top two fund houses in India.

ble 6.1 KEY INFORMATION

Franklin Templeton Mutual Fu

Feb-19-1996

te Oct-06-1995

Templeton International Inc.

Franklin Templeton Trustee S

d

n a decade as an

around the world,

ement India Pvt.

Templeton India

rown at a steady

ther leading fund

ence over market

tprint across the

e synergies that

at a rapid pace,

nd

rvices


78/89

78

CIO Mr. R. Sukumar / Mr. Santosh

Compliance Officer Ms. Shilpa Shetty

Investor Service Officer Ms. Sheela Kartik


Table 6.2 Scheme Highlights

Category: Equity

Sub-Category: Equity-Diversified

Type: Open

Min. Investment(Rs): 5000

Total Assets(Rs./Mn): 17271.09

Registrars:Franklin Templeton Asset

Management

Launch Date: 09-AUG-94

Scheme Objective:

An open end growth scheme with an objective to provide growth of capital plus

regular dividend through a diversified portfolio of equities, fixed income securities

and money market instruments.


79/89

79

Table 6.3 Absolute Returns (in %)


2012 14.6 - - - -

2011 -3.6 -0.4 -7.0 -5.7 -17.1

2010 3.4 0.2 16.0 -3.4 18.4

2009 -4.0 40.1 15.3 7.2 69.5

2008 -25.3 -13.1 5.1 -21.1 -47.7

2007 -4.6 21.9 13.4 18.8 53.0

Table 6.4 Returns Analysis

1 month 3 months 6 months 1 year 3 years Inception

Absolute 3.35 -3.02 8.67 -3.07 9.73 18.76

Relative Sensex -2.39 -0.06 -0.74 2.69 5.47 18.76

Relative to Nifty -2.43 0.34 -1.81 1.71 5.34 18.76


80/89

80

Chart 6.1 showing Absolute Annualized Returns of Franklin Templeton Fund

INTERPRETATION:

It is seen that the absolute annualized returns is 18.76 which is declined to -3.07 in

past year but an outstanding regain within 6 months with returns of 8.67, this reveals

that the returns are increased despite going negative but it is not consistent through

out. So that I conclude its a below average performer fund.

Table 6.5 Top Holdings

Equity Sector Value (Rs cr) Asset %

INFOSYS Technology 127.36 7.37

BHARTI AIRTEL Telecom 119.64 6.93

ICICI BANK Banking/Finance 119.21 6.90

HDFC BANK Banking/Finance 87.28 5.05

-5

0

5

10

15

20

Annualized Returns

Absolute Relative to Sensex Relative to Nifty


81/89

GRASIM

KOTAK MAHINDRA

INDUSIND BANK

RELIANCE

BOSCH

Dr.REDDY LABS

Chart 6.2

12%

9%

7%

7%

7%

81

Conglomerates 67.51

Banking/Finance 51.72

Banking/Finance 49.12

Oil & Gas 49.07

Automotive 46.89

Pharmaceuticals 46.63

Showing Portfolio and Assests

18%

17%

17%

6%

PORTFOLIO

3.91

2.99

2.84

2.84

2.71

2.70

INFOSYS

BHARTI AIRTEL

ICICI BANK

HDFC BANK

GRASIM

KOTAK MAHINDRA

INDUSIND BANK

RELIANCE

BOSCH


82/89

Table 6

Sector

Banking/Finance

Pharmaceuticals

Automotive

Technology

Telecom

Oil & Gas

Chart

14%

13%

82

.6 Sector Allocation (May 31, 12)

% 1-

High

19.57 21.46

10.31 10.31

9.45 10.42

8.94 13.95

8.55 12.95

8.05 10.11


30%

16%

15%

12%

SECTOR ALLOCATION

ear

Low

14.65

4.95

8.34

8.63

8.17

7.44

Banking/Finance

Pharmaceuticals

Automotive

Technology

Telecom

Oil & Gas


83/89

83


Equity 94.57

Others 0.08

Debt 0.06

SMutual Funds N.A

Money Market 0.00

Cash / Call 5.30


Period Returns (%) Rank #

1 month 3.4 50

3 month -3.0 32

6 month 8.7 62

1 year -3.1 21

2 year 2.6 12

3 year 9.7 33

5 year 7.3 23

Holdings (%)

Top 5 30.17

Top 10 44.26

Sector (%)

Top 3 39.33


84/89

84

Chart 6.4 Showing NAV Analysis of FRANKLIN TEMPLETON Equity Fund

INTERPRETATION:

It is seen that the returns of past 5 Years was 7.3% which has to increased to 9.7%

but dropped a lot in past 1 year to -3.1 but within no time regained its position to8.7% but unfortunately gone in negative -3% within 3 months again seen a slightly

increase to current position of 3.4%. This tells us that the fund is fluctuating a lot

which is a good sign for aggressive investors for short term gains, this has created a

W shaped graph which is seen as a double dip recession, and this fund is an above


7.3

9.7

2.6

-3.1

8.7

-3

3.4

-4

-2

0

2

4

6

8

10

12

5 Years 3 Years 2 Years 1 Year 6 Months 3 Months 1 Month

Returns (%)


85/89

85

Table 7.1 NAVs of various FUND Schemes

SECTOR BANKING N.B.F.C

DATE AXIS ICICI FRANKLINTEMPLETON

RELIANCE

1st June 2012 9.88 14.87 18.43 11.92

2n June 2012 9.85 14.84 18.42 11.87

3rd June 2012 9.85 14.84 18.42 11.87

4th June 2012 9.85. 14.84 18.42 11.87

5th June 2012 9.72 14.87 18.08 11.63

6

th

June 2012 9.73 14.86 17.89 11.697t June 2012 9.74 14.87 18.06 11.74

8t June 2012 9.97 14.87 18.30 12.03

9t June 2012 10.07 14.88 18.38 12.15

10t June 2012 10.07 14.88 18.38 12.15

11th June 2012 10.07 14.88 18.38 12.15

12th June 2012 10.09 14.87 18.41 12.20

13th June 2012 10.07 14.89 18.6 12.11

14th June 2012 10.08 14.90 18.61 12.12

15t June 2012 10.18 14.90 18.62 12.24

16t June 2012 10.07 14.91 18.44 12.06

17t June 2012 10.07 14.91 18.44 12.06

18t June 2012 10.07 14.87 18.44 12.06

19t June 2012 10.21 14.87 18.53 12.24

20th June 2012 10.06 14.93 18.63 12.04

21st June 2012 10.13 14.9 18.63 12.12

22nd June 2012 10.16 14.92 18.82 12.24

23rd June 2012 10.23 14.92 18.80 12.35

24t June 2012 10.23 14.92 18.80 12.35

25t June 2012 10.2 14.92 18.81 12.33


86/89

86

Chapter 5

FINDINGS

CONCLUSION


87/89

87

FINDINGS:

AXIS BANK:

It is seen that the returns 2 Years ago is -2.9% which has to increased drastically9.7% during past 6 months. This tells us that the fund is increasing considerably

good with returns of 3.7% on March 31, 2012.

ICICI BANK

It is seen that the returns of past 5 Years is 7.2% which has increased consistently

for 4 Years by reaching 8.9% a year ago and there after it has not performed as

expected by declining to worst of 0.9% a month ago. This tells us that the fund isdecreasing drastically; this fund is performing very low since its inception. Its a non-

performing fund.

RELIANCE:

It is seen that the returns of past 3 Years is -22.8% which has to increased

consistently for 2 Years by reaching 18.9% 6 months ago and there after it has not

performed as expected by declining to -0.3% a month ago. This tells us that the fund

is decreased drastically; this fund is performing very low but expected to grow, Its a


FRANKLIN TEMPLETON:

It is seen that the returns of past 5 Years was 7.3% which has to increased to 9.7%

but dropped a lot in past 1 year to -3.1 but within no time regained its position to

8.7% but unfortunately gone in negative -3% within 3 months again seen a slightly

increase to current position of 3.4%. This tells us that the fund is fluctuating a lot

which is a good sign for aggressive investors for short term gains, this has created a

W shaped graph which is seen as a double dip recession, and this fund is an above

average performing fund


88/89

88

CONCLUSIONS:

1. From the findings of Axis equity fund, we can analyze that fund is growing

performer and expected to grow over years; the fund is increasing

considerably good with returns as on March 31, 2012.

2. From the findings of I.C.I.C.I equity fund we can analyze that the returns are

increased steadily despite going negative a year ago it has kept the hopes to

investors with expected increase in returns. So its a re-gaining performer.

3. From the findings of Reliance equity fund we can analyze that the returns are

increased despite going negative a year ago but it has not kept the

momentum and dropped drastically to -21.8. So that I conclude its a below

average performer fund.

4. From the findings of ICICI equity fund we can analyse that the returns are

increased despite going negative but it is not consistent throughout, so that I

conclude its a below average performer fund.

5. Comparing of various schemes on the basis of annualized returns that among

the equity based fund, AXIS equity fund and ICICI equity fund, both funds are

considerably growing this indicates there is a good sign for investors to invest

in banking sector, whereas Franklin Templeton equity fund and Reliance

equity fund, annualized returns show that both the equity fund had less

returns since inception of the fund and can be said has good fund than the

other funds.

6. Comparative analysis of NAV revels that AXIS equity is performing good

when compared to ICICI equity fund, Reliance equity fund and Franklin

Templeton equity fund. While Reliance equity is average performer and

Franklin Templeton equity find is above average performer. Therefore we can

conclude that Reliance equity fund is better fund than Franklin Templeton

equity fund and ICICI equity fund.


89/89

www.nseindia.com

www.moneycontrol.com

www.amfi-india.com

www.myiris.com

Mutual Fund PREM

Documents

Transcript of Mutual Fund PREM