TABLE OF CONTENTS

CONTENTS
Chapter -I :Introduction Organization Of A Mutual Fund Types Of Mutual Fund Schemes Advantages isadvantages

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Chapter II: Industry 'rofile Company 'rofile State (an) of India ICICI 'rudential

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Chapter III: Tools For Calculations Chapter I-: Calculations. Analysis. Interpretation Chapter -: Findings Chapter -I: Conclusion /imitations 0 (i1liography

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Chapter-I: Introduction MUTUAL FUN S: Mutual funds. as the name indicates is the fund 3here in numerous investors come together to invest in various schemes of mutual fund4 Mutual funds are dynamic institution. 3hich plays a crucial role in an economy 1y mo1ilizing savings and investing them in the capital mar)et. thus esta1lishing a lin) 1et3een savings and the capital mar)et4 A mutual fund is an institution that invests the pooled funds of pu1lic to create a diversified portfolio of securities4 'ooling is the )ey to mutual fund investing4 5ach mutual fund has a specific investment o16ective and tries to meet that o16ective through active portfolio management4 Mutual fund as an investment company com1ines or collects money of its shareholders and invests those funds in variety of stoc)s. 1onds. and money mar)et instruments4 The latter include securities. commercial papers. certificates of deposits. etc4 Mutual funds provide the investor 3ith professional management of funds and diversification of investment4 Investors 3ho invest in mutual funds are provided 3ith units to participate in stoc) mar)ets4 These units are investment vehicle that provide a means of participation in the stoc) mar)et for people 3ho have neither the time. nor the money. nor perhaps the e7pertise to underta)e the direct investment in e8uities4 On the other hand they also provide a route into specialist mar)ets 3here direct investment often demands 1oth more time and more )no3ledge than an investor may possess4 The price of units in any mutual fund is governed 1y the value of underlying securities4 The value of an investor9s holding in a unit can therefore. li)e an investment in share. can go do3n as 3ell as up4 :ence it is said that mutual funds are su16ected to mar)et ris)4 Mutual fund cannot guarantee a fi7ed rate of return4 It depends on the mar)et condition4 If the particular scheme is performing 3ell then more return can 1e e7pected4 It also depends on the fund manager e7pertise )no3ledge4 It is also seen that people invest in particular funds depending on 3ho the fund manager is4

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A Mutual Fund is a trust that pools the savings of a num1er of investors 3ho share a common financial goal4 The money thus collected is invested 1y the fund manager in different types of securities depending upon the o16ective of the scheme4 These could range from shares to de1entures to money mar)et instruments4 The income earned through these investments and the capital appreciations realized 1y the schemes are shared 1y its unit holders in proportion to the num1er of units o3ned 1y them4
Mutual Fund Operation Flow Chart

Thus a mutual fund is the most suita1le investment for the common person as it offers an opportunity to invest in a diversified. professionally managed 1as)et of securities at a relatively lo3 cost4 Since small investors generally do not have ade8uate time. )no3ledge. e7perience 0 resources for directly accessing the capital mar)et. they have to rely on an intermediary. 3hich underta)es informed investment decisions 0 provides conse8uential 1enefits of professional e7pertise4 A collected corpus can 1e used to procure a diversified portfolio indicating greater returns has also create economies of scale through cost reduction4 This principle has 1een effective 3orld3ide as more 0 more investors are going the mutual fund 3ay4 This portfolio diversification ensures ris) minimization4 The criticality such a measure comes in 3hen you factor in the fluctuations that characterize stoc) mar)ets4 The interest of the investors is protected 1y the S5(I. 3hich acts as a 3atchdog4 Mutual funds are governed 1y S5(I ;Mutual Funds< regulations. &%%*4 ORGANISATION OF A MUTUAL FUN There are many entities involved and the diagram 1elo3 illustrates the organizational set up of a mutual fund:

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Mutual funds have a uni8ue structure not shared 3ith other entities such as companies of firms4 It is important for employees 0 agents to 1e a3are of the special nature of this structure. 1ecause it determines the rights 0 responsi1ilities of the fund9s constituents viz4. sponsors. trustees. custodians. transfer agents 0 of course. the fund 0 the Asset Management Company;AMC< the legal structure also drives the interrelationships 1et3een these constituents4 The structure of the mutual fund India is governed 1y the S5(I ;Mutual Funds< regulations. &%%*4 These regulations ma)e it mandatory for mutual funds to have a structure of sponsor. trustee. AMC. custodian4 The sponsor is the promoter of the mutual fund. 0 appoints the trustees4 The trustees are responsi1le to the investors in the mutual fund. 0 appoint the AMC for managing the investment portfolio4 The AMC is the 1usiness face of the mutual fund. as it manages all affairs of the mutual fund4 The mutual fund 0 the AMC have to 1e registered 3ith S5(I4 Custodian. 3ho is also registered 3ith S5(I. holds the securities of various schemes of the fund in its custody4 Spon!or: esta1lishes the Mutual fund 0 registers the

The sponsor is the promoter of the mutual fund4 The sponsor

same 3ith S5(I4 :e appoints the trustees. Custodians 0 the AMC 3ith prior approval of S5(I. 0 in accordance 3ith S5(I regulations4 :e must have at least five year trac) record of 1usiness interest in the financial mar)ets4 Sponsor must have 1een profit ma)ing in at least three of the a1ove five years4 :e must contri1ute at least #!= of the capital of the AMC4 Tru!tee!:

A (oard of Trustees > a 1ody of individuals. or a trust company > a corporate 1ody. may manage the Trust4 (oard of Trustees manages most of the funds in India4 The Trust is created through a document called the Trust eed that is e7ecuted 1y the Fund Sponsor in favors of the trustees4 They are the primary guardian of the unit holder9s funds and assets4 They ensure that AMC9s operations are along professional lines4 Ri"ht o# Tru!tee! -ignan Institute of Technology 0 Science. eshmu)hi-2!$,$# #

a< Appoint the AMC 3ith the prior approval of S5(I 1< Approve each of the schemes floated 1y the AMC c< :ave the right to re8uest any necessary information from the AMC concerning the operations of various schemes managed 1y the AMC

O$%i"ation! o# the AMC and it! irector! They must ensure that: a< Investment of funds is in accordance 3ith S5(I ?egulations and the Trust eed 1< Ta)e responsi1ility for the act of its employees and others 3hose services it has procured c< o not underta)e any other activity conflicting 3ith managing the fund A!!et Mana"e&ent Co&pan'(AMC):

The role of an Asset management companies is to act as the investment manager of the trust4 They are the ones 3ho manage money of investors4 An AMC ta)es decisions. compensates investors through dividends. maintains proper accounting 0 information for pricing of units. calculates the @A-. 0 provides information on listed schemes4 It also e7ercises due diligence on investments 0 su1mits 8uarterly reports to the trustees4 AMCs have 1een set up in various countries internationally as an ans3er to the glo1al pro1lem of 1ad loans4 Cu!todian: The custodian is appointed 1y the (oard of Trustees for safe)eeping of securities in terms of physical delivery and eventual safe )eeping or participating in the clearing system through approved depository companies4 Re"i!trar! * Tran!#er A"ent(R * T A"ent):

The ?egistrars 0 Transfer Agents;? 0 T Agents< are responsi1le for the investor servicing function. as they maintain the records of investors in mutual funds4 They process investor applicationsA record details provide 1y the investors on application formsA send out to investors details regarding their investment in the mutual fundA send out periodical information on the performance of the mutual fundA process dividend payout to investorA incorporate changes in information as communicated 1y investorsA 0 )eep the investor record upto-date. 1y recording ne3 investors 0 removing investors 3ho have 3ithdra3n their funds4 -ignan Institute of Technology 0 Science. eshmu)hi-2!$,$# 2

SEBI + Securitie! and E,chan"e Board o# India: In &%$$ the Securities and 57change (oard of India ;S5(I< 3as esta1lished 1y the Bovernment of India through an e7ecutive resolution. and 3as su1se8uently upgraded as a fully autonomous 1ody ;a statutory (oard< in the year &%%, 3ith the passing of the Securities and 57change (oard of India Act ;S5(I Act< on "!th Canuary &%%,4 In place of Bovernment Control. a statutory and autonomous regulatory 1oard 3ith defined responsi1ilities. to cover 1oth development 0 regulation of the mar)et. and independent po3ers have 1een set up4 'arado7ically this is a positive outcome of the Securities Scam of &%%!-%&4 The $a!ic o$-ecti.e! o# the Board /ere identi#ied a!:

to protect the interests of investors in securitiesA to promote the development of Securities Mar)etA to regulate the securities mar)et and for matters connected there3ith or incidental thereto4

Since its inception S5(I has 1een 3or)ing targeting the securities and is attending to the fulfillment of its o16ectives 3ith commenda1le zeal and de7terity4 The improvements in the securities mar)ets li)e capitalization re8uirements. margining. esta1lishment of clearing corporations etc4 reduced the ris) of credit and also reduced the mar)et4 S5(I has introduced the comprehensive regulatory measures. prescri1ed registration norms. the eligi1ility criteria. the code of o1ligations and the code of conduct for different intermediaries li)e. 1an)ers to issue. merchant 1an)ers. 1ro)ers and su1-1ro)ers. registrars. portfolio managers. credit rating agencies. under3riters and others4 It has framed 1ye-la3s. ris) identification and ris) management systems for Clearing houses of stoc) e7changes. surveillance system etc4 3hich has made dealing in securities 1oth safe and transparent to the end investor4 Another significant event is the approval of trading in stoc) indices ;li)e S0' C@D @ifty 0 Sense7< in ,!!!4 A mar)et Inde7 is a convenient and effective product 1ecause of the follo3ing reasons:

It acts as a 1arometer for mar)et 1ehaviorA It is used to 1enchmar) portfolio performanceA It is used in derivative instruments li)e inde7 futures and inde7 optionsA It can 1e used for passive fund management as in case of Inde7 Funds4 -ignan Institute of Technology 0 Science. eshmu)hi-2!$,$# *

T3o 1road approaches of S5(I is to integrate the securities mar)et at the national level. and also to diversify the trading products. so that there is an increase in num1er of traders including 1an)s. financial institutions. insurance companies. mutual funds . primary dealers etc4 to transact through the 57changes4 In this conte7t the introduction of derivatives trading through Indian Stoc) 57changes permitted 1y S5(I in ,!!! A is a real landmar)4

T0PES OF MUTUAL FUN SC1EMES: B' Structure o Open-ended schemes o Close-ended schemes o Interval schemes B' In.e!t&ent O$-ecti.e o Bro3th schemes o Income schemes o (alance schemes o Money Mar)et schemes Other t'pe! o# !che&e! o Ta7 Saving schemes o Special schemes o Inde7 schemes o Sector specific schemes C%o!ed-end #und!: A closed-end mutual fund 1ears a num1er of shares 3hich are issued to the pu1lic 1y an initial pu1lic offering ;I'O<4 Open-end #und!: Open end funds are managed 1y mutual fund houses for raising money from shareholders and they invest in a group of assets4 Lar"e cap #und!: /arge cap funds are those mutual funds. 3hich loo) for capital appreciation 1y 3ay of investing in 1lue chip stoc)s4 Mid-cap #und!: Mid cap funds invest in smallEmedium sized companies. 1ut 3ith no proper definition of classifying a company4 E2uit' #und!: 58uity mutual funds. also )no3n as stoc) mutual funds invest pooled amounts of money in pu1lic company stoc)s4 Ba%anced #und!: (alanced funds are also )no3n as hy1rid fund. 1uying a com1ination of common stoc). preferred stoc). 1onds. and short-term 1onds4 -ignan Institute of Technology 0 Science. eshmu)hi-2!$,$# +

Gro/th #und!: Bro3th funds are mutual funds that target at capital appreciation 1y investing in gro3th stoc)s4 E,chan"e traded #und!: 57change Traded Funds ;5TFs< are a 1as)et of securities 1eing traded on an e7change. 6ust similar to that of a stoc)4 They are not li)e the conventional mutual funds4 Sector #und!: These funds are funds that restrict the investments to a specific segment or sector4 Inde, #und!: An inde7 fund aims to replicate the actions of an inde7 of a specific financial mar)et4

The Ad.anta"e! o# in.e!tin" in a Mutua% Fund are: 'rofessional Management >

The primary advantage of funds ;at least theoretically< is the professional management of your money4 Investors purchase funds 1ecause they do not have the time or the e7pertise to manage their o3n portfolio4 A mutual fund is a relatively ine7pensive 3ay for a small investor to get a full-time manager to ma)e and monitor investments4 iversification >

(y o3ning shares in a mutual fund instead of o3ning individual stoc)s or 1onds. your ris) is spread out4 The idea 1ehind diversification is to invest in a large num1er of assets so that a loss in any particular investment is minimized 1y gains in others4 In other 3ords. the more stoc)s and 1onds you o3n. the less any one of them can hurt you ;thin) a1out 5nron<4 /arge mutual funds typically o3n hundreds of different stoc)s in many different industries4 It 3ouldnFt 1e possi1le for an investor to 1uild this )ind of a portfolio 3ith a small amount of money4 5conomies of Scale >

(ecause a mutual fund 1uys and sells large amounts of securities at a time. its transaction costs are lo3er than you as an individual 3ould pay4 Convenient Administration>

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Investing in a Mutual Fund reduces paper3or) and helps you avoid many pro1lems such as 1ad deliveries. delayed payments and follo3 up 3ith 1ro)ers and companies4 Mutual Funds save your time and ma)e investing easy and convenient4 ?eturn 'otential>

Over a medium to long-term. Mutual Funds have the potential to provide a higher return as they invest in a diversified 1as)et of selected securities4 /o3 Costs>

Mutual Funds are a relatively less e7pensive 3ay to invest compared to directly investing in the capital mar)ets 1ecause the 1enefits of scale in 1ro)erage. custodial. emat costs. depository costs etc and other fees translate into lo3er costs for investors4

/i8uidity>

In open-end schemes. the investor gets the money 1ac) promptly at net asset value related prices from the Mutual Fund4 In closed-end schemes. the units can 1e sold on a stoc) e7change at the prevailing mar)et price or the investor can avail of the facility of direct repurchase at @A- related prices 1y the Mutual Fund4 Transparency>

Gou get regular information on the value of your investment in addition to disclosure on the specific investments made 1y your scheme. the proportion invested in each class of assets and the fund managerFs investment strategy and outloo)4 Fle7i1ilit'>

Through features such as regular investment plans. regular 3ithdra3al plans and dividend reinvestment plans. you can systematically invest or 3ithdra3 funds according to your needs and convenience4 Afforda1ility>

Investors individually may lac) sufficient funds to invest in high-grade stoc)s4 A mutual fund 1ecause of its large corpus allo3s even a small investor to ta)e the 1enefit of its investment strategy4 Choice of Schemes> -ignan Institute of Technology 0 Science. eshmu)hi-2!$,$# %

Mutual Funds offer a family of schemes to suit your varying needs over a lifetime4 Hell-?egulated>

All Mutual Funds are registered 3ith S5(I and they function 3ithin the provisions of strict regulations designed to protect the interests of investors4 The operations of Mutual Funds are regularly monitored 1y S5(I4 AMFI is the supervisory 1ody of Mutual Fund Industry4 Simplicity >

(uying a mutual fund is easyI 'retty 3ell any 1an) has its o3n line of mutual funds. and the minimum investment is small4 Most companies also have automatic purchase plans 3here1y as little as J&!! can 1e invested on a monthly 1asis4

The i!ad.anta"e! o# Mutua% Fund! are: The isadvantages of investing in a Mutual Fund are: K 'rofessional ManagementMany investors de1ate over 3hether or not the so-called professionals are any 1etter than you or I at pic)ing stoc)s4 Management is 1y no means infalli1le. and. even if the fund loses money. the manager still ta)es hisEher cut4 HeFll tal) a1out this in detail in a later section4 K Costs > Mutual funds donFt e7ist solely to ma)e your life easier--all funds are in it for a profit4 The mutual fund industry is masterful at 1urying costs under layers of 6argon4 These costs are so complicated that in this tutorial have devoted an entire section to the su16ect4 K ilution > ItFs possi1le to have too much diversification ;this is e7plained in our article entitled LAre Gou OveriversifiedML4 (ecause funds have small holdings in so many different companies. high returns from a fe3 investments often donFt ma)e much difference on the overall return4 ilution is also the result of a -ignan Institute of Technology 0 Science. eshmu)hi-2!$,$# &!

successful fund getting too 1ig4 Hhen money pours into funds that have had strong success. the manager often has trou1le finding a good investment for all the ne3 money4 K Ta7es > Hhen ma)ing decisions a1out your money. fund managers donFt consider your personal ta7 situation4 For e7ample. 3hen a fund manager sells a security. a capital-gain ta7 is triggered. 3hich affects ho3 profita1le the individual is from the sale4 It might have 1een more advantageous for the individual to defer the capital gains lia1ility4 FRE3UENTL0 USE TERMS Net A!!et 4a%ue (NA4): @et Asset -alue is the mar)et value of the assets of the scheme minus its lia1ilities4 The per unit @A- is the net asset value of the scheme divided 1y the num1er of units outstanding on the -aluation ate4 The net asset value ;@A-< is the mar)et value of the fundFs underlying securities4 It is calculated at the end of the trading day4 Any open-end funds 1uy or sell order received on that day is traded 1ased on the net asset value calculated at the end of the day4 The @A- per units is such @et Asset -alue divided 1y the num1er of outstanding units4

Sa%e Price: Is the price you pay 3hen you invest in a scheme or @A- a unit holder is charged 3hile investing in an open-ended scheme is sale priceM Also called Offer 'rice4 It may include a sales load if applica1le4 Repurcha!e Price: Is the price at 3hich a close-ended scheme repurchases its units and it may include a 1ac)-end loadM This is also called (id 'rice4 Rede&ption Price: Is the price at 3hich open-ended schemes repurchase their units and close-ended schemes redeem their units on maturityM Such prices are @A- related4

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Sa%e! Load: Is a charge collected 1y a scheme 3hen it sells the units4 Also called. NFront-end9 load4 No Load: Schemes that do not charge a load are called N@o /oad9 schemes4 A no-load fund is one that does not charge for entry or e7it4 It means the investors can enter the fundEscheme at @A- and no additional charges are paya1le on purchase or sale of units4 510 TO IN4EST IN MUTUAL FUN S: A proven principle of sound investment is > Odo not put all eggs in one 1as)etP4 Investment in mutual funds is 1eneficial due to follo3ing reasons4 They help in pooling of funds and investing in large 1as)et of shares of different companies4 Thus 1y investing in diverse companies. mutual funds can protect against une7pected fall in value of investment4 An average investor does not have enough time and resources to develop professional attitude to3ards their investment4 :ere professional fund managers engaged 1y mutual funds ta)e desira1le investment decision on 1ehalf of investors so as to ma)e 1etter utilization of resources4 Investment in mutual funds is comparatively more li8uid 1ecause investor can sell the units in open mar)et or can approach mutual fund to repurchase the units at net asset value depending upon the type of scheme4 Investors can avail ta7 re1ates 1y investing in different ta7 saving schemes floated 1y these funds. approved 1y the government4 Operating cost is minimized per head 1ecause of large size of investi1le funds. there 1y realizing more net income of investors4

Mutua% Fund Indu!tr' in India

The E.o%ution The formation of Qnit Trust of India mar)ed the evolution of the Indian mutual fund industry in the year &%*"4 The primary o16ective at that time 3as to attract the small investors and it 3as made possi1le through -ignan Institute of Technology 0 Science. eshmu)hi-2!$,$# &,

the collective efforts of the Bovernment of India and the ?eserve (an) of India4 The history of mutual fund industry in India can 1e 1etter understood divided into follo3ing phases: Pha!e 67 E!ta$%i!h&ent and Gro/th o# Unit Tru!t o# India - 689:-;< Qnit Trust of India en6oyed complete monopoly 3hen it 3as esta1lished in the year &%*" 1y an act of 'arliament4 QTI 3as set up 1y the ?eserve (an) of India and it continued to operate under the regulatory control of the ?(I until the t3o 3ere de-lin)ed in &%+$ and the entire control 3as transferred in the hands of Industrial evelopment (an) of India ;I (I<4 QTI launched its first scheme in &%*#. named as Qnit Scheme &%*# ;QS-*#<. 3hich attracted the largest num1er of investors in any single investment scheme over the years4 QTI launched more innovative schemes in &%+!s and $!s to suit the needs of different investors4 It launched Q/I' in &%+&. si7 more schemes 1et3een &%$&-$#. ChildrenFs Bift Bro3th Fund and India Fund ;IndiaFs first offshore fund< in &%$*. Mastershare ;India9s first e8uity diversified scheme< in &%$+ and Monthly Income Schemes ;offering assured returns< during &%%!s4 (y the end of &%$+. QTIFs assets under management gre3 ten times to ?s *+!! Crores4 Pha!e II7 Entr' o# Pu$%ic Sector Fund! - 68;<-688= The Indian mutual fund industry 3itnessed a num1er of pu1lic sector players entering the mar)et in the year &%$+4 In @ovem1er &%$+. S(I Mutual Fund from the State (an) of India 1ecame the first non-QTI mutual fund in India4 S(I Mutual Fund 3as later follo3ed 1y Can1an) Mutual Fund. /IC Mutual Fund. Indian (an) Mutual Fund. (an) of India Mutual Fund. BIC Mutual Fund and '@( Mutual Fund4 (y &%%". the assets under management of the industry increased seven times to ?s4 #+.!!# Crores4 :o3ever. QTI remained to 1e the leader 3ith a1out $!= mar)et share4 Pha!e III7 E&er"ence o# Pri.ate Sector Fund! - 688=-89 The permission given to private sector funds including foreign fund management companies ;most of them entering through 6oint ventures 3ith Indian promoters< to enter the mutual fund industry in &%%". provided a 3ide range of choice to investors and more competition in the industry4 'rivate funds introduced innovative products. investment techni8ues and investor-servicing technology4 (y &%%#-%2. a1out && private sector funds had launched their schemes4 Pha!e I47 Gro/th and SEBI Re"u%ation - 6889->??: The mutual fund industry 3itnessed ro1ust gro3th and stricter regulation from the S5(I after the year &%%*4 The mo1ilization of funds and the num1er of players operating in the industry reached ne3 heights as investors started sho3ing more interest in mutual funds4 -ignan Institute of Technology 0 Science. eshmu)hi-2!$,$# &"

InvestorsF interests 3ere safeguarded 1y S5(I and the Bovernment offered ta7 1enefits to the investors in order to encourage them4 S5(I ;Mutual Funds< ?egulations. &%%* 3as introduced 1y S5(I that set uniform standards for all mutual funds in India4 The Qnion (udget in &%%% e7empted all dividend incomes in the hands of investors from income ta74 -arious Investor A3areness 'rogrammes 3ere launched during this phase. 1oth 1y S5(I and AMFI. 3ith an o16ective to educate investors and ma)e them informed a1out the mutual fund industry4 In Fe1ruary ,!!". the QTI Act 3as repealed and QTI 3as stripped of its Special legal status as a trust formed 1y an Act of 'arliament4 The primary o16ective 1ehind this 3as to 1ring all mutual fund players on the same level4 QTI 3as re-organized into t3o parts: &4 The Specified Qnderta)ing. ,4 The QTI Mutual Fund 'resently Qnit Trust of India operates under the name of QTI Mutual Fund and its past schemes ;li)e QS*#. Assured ?eturn Schemes< are 1eing gradually 3ound up4 :o3ever. QTI Mutual Fund is still the largest player in the industry4 In &%%%. there 3as a significant gro3th in mo1ilization of funds from investors and assets under management 3hich is supported 1y the follo3ing data: Pha!e 47 Gro/th and Con!o%idation - >??: On/ard! The industry has also 3itnessed several mergers and simultaneously. more international mutual fund players have entered India li)e Fidelity. Fran)lin Templeton Mutual Fund etc4 At present there are ## Mutual Fund :ouses in India 3ith Average Assets under Management ;AAQM< ?s4 +&",$&,"4"" /a)hs44 Ri!@ #actor! a!!ociated /ith in.e!tin" in &utua% #und!: Mutual funds and securities investments are su16ect to mar)et ris)s and there is no assurance or guarantee that the o16ectives of the schemes 3ill 1e achieved4 As 3ith any investment in securities. the @A- of the units issued under the schemes can rise or fall depending on the factors and forces affecting capital mar)ets4 @either the past performance of the mutual funds managed 1y the sponsors and their affiliates E associates nor the past performance of the sponsors. asset management companies ;AMC< nor fund is necessarily indicative of the future performance of the schemes 58uity Funds are open to mar)et ris) i4e4 there is a possi1ility that the price of the stoc)s in 3hich the Fund has invested may decrease4 Of course. the prices may also go up. ma)ing it possi1le for the Fund to earn profits -ignan Institute of Technology 0 Science. eshmu)hi-2!$,$# &#

e1ts Funds are open to t3o main ris)s - Credit ?is) and Interest ?ate ?is)4 Credit ?is) refers to the possi1ility that the company that has issued the 1ond or de1enture in 3hich the Fund has invested may default on interest or on principal payments4 e1t Fund managers ta)e care of this 1y investing in 1onds 3hich have good credit rating Interest ?ate ?is) refers to the possi1ility that the price of the 1ond in 3hich the Fund has invested may go do3n 1ecause of an increase in the interest rates in the economy4 In general. it is useful to remem1er that this is a Lsee-sa3L relationship - a 1ond price ;and therefore. @A-< goes up 3hen interest rates drop and drops 3hen interest rates rise4

Chapter-II: Co&pan' Pro#i%e SBI MUTUAL FUN ;S(I MF< is one of the largest mutual funds in the country 3ith an investor 1ase of over 24$ million4 Hith over ,! years of rich e7perience in fund management. S(I MF 1rings for3ard its e7pertise in consistently delivering value to its investors4 S(I MF dra3s its strength from IndiaFs /argest (an). State (an) of India and SociRtR BRnRrale Asset Management. France4 T:5 STAT5 (A@S OF I@ IA The country9s oldest (an) and a premier in terms of 1alance sheet size. num1er of 1ranches. mar)et capitalization and profits is today going through a momentous phase of Change and Transformation > the t3o hundred year old 'u1lic sector 1ehemoth is today stirring out of its 'u1lic Sector legacy and moving 3ith an agility to give the 'rivate and Foreign (an)s a run for their money4 The 1an) is entering into many ne3 1usinesses 3ith strategic tie ups > 'ension Funds. Beneral Insurance. Custodial Services. 'rivate 58uity. Mo1ile (an)ing. 'oint of Sale Merchant Ac8uisition. Advisory Services. structured products etc > each one of these initiatives having a huge potential for gro3th4 -ignan Institute of Technology 0 Science. eshmu)hi-2!$,$# &2

The (an) is forging ahead 3ith cutting edge technology and innovative ne3 1an)ing models. to e7pand its ?ural (an)ing 1ase. loo)ing at the vast untapped potential in the hinterland and proposes to cover &!!.!!! villages in the ne7t t3o years4 It is also focusing at the top end of the mar)et. on 3hole sale 1an)ing capa1ilities to provide India9s gro3ing mid E large Corporate 3ith a complete array of products and services4 It is consolidating its glo1al treasury operations and entering into structured products and derivative instruments4 Today. the (an) is the largest provider of infrastructure de1t and the largest arranger of e7ternal commercial 1orro3ings in the country4 It is the only Indian 1an) to feature in the Fortune 2!! list4 The (an) is changing outdated front and 1ac) end processes to modern customer friendly processes to help improve the total customer e7perience4 Hith a1out $2!! of its o3n &!!!! 1ranches and another 2&!! 1ranches of its Associate (an)s already net3or)ed. today it offers the largest 1an)ing net3or) to the Indian customer4 The (an) is also in the process of providing complete payment solution to its clientele 3ith its over $2!! ATMs. and other electronic channels such as Internet 1an)ing. de1it cards. mo1ile 1an)ing. etc4

ICICI PRU ENTIAL Asset Management Company en6oys the strong parentage of prudential plc. one of QSFs largest players in the insurance 0 fund management sectors and ICICI (an). a 3ell-)no3n and trusted name in financial services in India. ICICI 'rudential Asset Management Company, in a span of 6ust over eight years. has forged a position of pre-eminence in the Indian Mutual Fund industry as one of the largest asset management companies in the country 3ith assets under management of ?s *%.+2#4+$ Crore ;as of Septem1er "!. ,!&!<4 The Company manages a comprehensive range of schemes to meet the varying investment needs of its investors spread across *$ cities in the country4 ICICI (A@S: ICICI (an) is IndiaFs second-largest 1an) 3ith total assets of a1out ?s4 ".*"# (illion as at March "&. ,!&! and profit after ta7 of ?s4 #!4,2 (illion for the year ended March "&. ,!&!4 ICICI (an) has a net3or) of a1out ,.2!* 1ranches and #2 e7tension counters and over 2.$!$ ATMs4 ICICI (an) offers a 3ide range of 1an)ing products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized su1sidiaries and affiliates in the areas of investment 1an)ing. life and non-life insurance. venture capital and asset management4

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ICICI (an) set up its international 1an)ing group in fiscal ,!!, to cater to the cross 1order needs of clients and leverage on its domestic 1an)ing strengths to offer products internationally4 ICICI (an) currently has su1sidiaries in the Qnited Singdom. ?ussia and Canada. 1ranches in Singapore. (ahrain. :ong Song. Sri /an)a and u1ai International Finance Centre and representative offices in the Qnited States. Qnited Ara1 5mirates. China. South Africa and (angladesh4 QS su1sidiary of ICICI (an) has esta1lished a 1ranch in (elgium4 ICICI (an) is the most valua1le 1an) in India in terms of mar)et capitalization4 ;Source: Overvie3 at 3334icici1an)4com<4 '?Q 5@TIA/ 'lc4 :ead8uartered in /ondon. 'rudential Plc is a leading international financial services group. offering a significant portfolio of life insurance and fund management products in the Qnited Singdom. the Qnited States. Asia and continental 5urope4 'rudential Plc is a leading international financial services group providing retail financial products and services and fund management to many millions of customers 3orld3ide4 As a group 'rudential 'lc has. as of "& ec ,!!+. T"!% (illion in assets under management and more than ,2 Million employees 3orld3ide as of Cune "& ,!&!4 He are one of the 1est capitalized insurers in the 3orld 3ith an Insurance Broups irective ;IB < capital surplus estimated at T"4# 1illion4 In the Qnited Singdom 'rudential is a leading life and pension9s provider offering a range of retail financial products4 M0B is 'rudential9s QS and 5uropean fund management 1usiness 3ith total assets under management of T&+$ 1illion ;at "! Cune ,!&!<4 Cac)son @ational /ife. ac8uired 1y 'rudential in &%$*. is a leading provider of long-term savings and retirement products to retail and institutional customers throughout the Qnited States4 Prudentia% Corporation A!ia is part of 'rudential 'lc ;Qnited Singdom<. the &*! year old international retail financial services group head8uartered in /ondon4 Hith mar)et-leading life insurance. fund management and consumer finance operations across Asia. 'rudential serves ,2 million customers and manage T"!% 1illion in assets ;as of "! Cune ,!&!<4 Hithin a decade. 'rudential Corporation Asia has 1ecome the regionFs leading 5urope-1ased life insurer in terms of mar)et coverage and num1er of top three mar)et positions. 3ith over #&!.!!! agents and employees4 Our insurance operations span &, mar)ets - Mainland China. :ong Song. India. Indonesia. Capan. Sorea. Malaysia. the 'hilippines. Singapore. Tai3an. Thailand and -ietnam4

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'rudential Corporation AsiaFs fund management 1usiness manages assets on 1ehalf of a 3ide range of retail and institutional investors. in addition to managing assets for 'rudential plc and 'rudential Corporation Asia4 'rudentialFs fund management 1usiness in Asia is one of the regionFs largest 1y measure of Asia-sourced assets under management. 3ith T#*4& 1illion in assets under management ;as of "! Cune ,!&!<4 Our fund management operations span &! mar)ets - Mainland China. :ong Song. India. Capan. Sorea. Malaysia. Singapore. Tai3an. -ietnam and the Qnited Ara1 5mirates4

RISA RETURN ANAL0SIS OF T1E SC1EMES A rational investor 1efore investing his or her money in any stoc) analyses the ris) associated 3ith the particular stoc)4 The actual return he receives from a stoc) may vary from the e7pected one and thus an investor is al3ays cautious a1out the rate of ris) associated 3ith the particular stoc)4 :ence it 1ecomes very essential on the part of investors to )no3 the ris) as the hard earned money is 1eing invested 3ith the vie3 to earn good return on the investment4 ?is) mainly consists of t3o components Systematic ris) Qnsystematic ris)

S'!te&atic ri!@

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The systematic ris) affects the entire mar)et4 The economic conditional. political situations. sociological changes affect the entire mar)et in turn affecting the company and even the stoc) mar)et4 These situations are uncontrolla1le 1y the corporate and investor4 Un!'!te&atic ri!@ The unsystematic ris) is uni8ue to industries4 It differs from industry to industry4 Qnsystematic ris) stems from managerial inefficiency. technological change in the production process. availa1ility of ra3 materials. changes in the consumer preference. and la1or pro1lems4 The nature and magnitude of a1ove mentioned factors differ from industry to industry and company to company4 In a general vie3. the ris) for any investor 3ould 1e the pro1a1le loss for investing money in any mutual fund4 (ut 3hen 3e loo) at the technical side of it. 3e can9t 6ust say that this schemesEfund carry ris) 3ithout any proof4 They are certain set of formulas to say the percentage of ris) associated 3ith it4 There are certain tools or formulas used to calculate the ris) associated 3ith the schemes4 These tools help us to understand the ris) associated 3ith the schemes4 These schemes are compared 3ith the 1enchmar) (S5 &!!4

Chapter-III: T1E TOOLS USE The tools for calculation are: Arithmetic Mean Standard (eta Alpha Sharpe ratio Treynor ratio eviation

FOR CALCULATION

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Arith&etic Mean U GE@ Hhere G- ?eturn of @A- values @- @um1er of O1servation

Average return that can 1e e7pected from investment4 The arithmetic average return is appropriate as a measure of the central tendency of a num1er of returns calculated for a particular time i4e4 for five years4 It sho3s the Standard e.iation

S4 V W;y-G<X @ The standard deviation is a measure of the varia1les around its mean or it is the s8uare root of the sum of the s8uared deviations from the mean divided 1y the num1er of o1servations4 S4 is used to measure the varia1ility of return i4e4 the variation 1et3een the actual and e7pected

return4 BETA (eta descri1es the relationship 1et3een the stoc)9s return and inde7 returns4 There can 1e direct or indirect relation 1et3een stoc)9s return and inde7 return4 Indirect relations are very rare4 &< (eta V Y &4! It indicates that one percent change in mar)et inde7 return causes e7actly one percent change in the stoc) return4 It indicates that stoc) moves along 3ith the mar)et4 ,< (etaV Y !42 One percent changes in the mar)et inde7 return causes !42 percent change in the stoc) return4 It indicates that it is less volatile compared to mar)et4 "< (etaV Y ,4!

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One percent change in the mar)et inde7 return causes , percent change in the stoc) return4 The stoc) return is more volatile4 The stoc)s 3ith more than & 1eta value are considered to 1e very ris)y4 #< @egative 1eta value indicates that the stoc)s return move in opposite direction to the mar)et return4 2< (etaV @ZUDG- ;UD< ;UG< E @;UD< Z ;U7< , Hhere @- @o of o1servation D- Total of mar)et inde7 value ALP1A Alpha V G- 1eta;D< Hhere G- Average return to nav return D- Average return to mar)et inde74 G- Total of return to @av

Alpha indicates that the stoc) return is independent of the mar)et return4 A positive value of alpha is a healthy sign4 'ositive alpha values 3ould yield profita1le return4 S1ARPE RATIO StV ?p [ ?f S4 H:5?5 ? p > Avereage ?eturn on 'ortfolio ? f [?is) Free ?ate of Interest S4 - Standard eviation

Sharpe9s performce inde7 gives a single value to 1e used for the performance ran)ing of various funds or portfolios4 Sharpe inde7 measures the ris) premium of the portfolio relative to the total amount of ris) in the portfolio4 The ris) premium is the difference 1et3een the portfolio9s average rate of return and the ris) less rate of return4 The standard deviation of the portfolio indicates the ris)4

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:igher the value of sharpe ratio 1etter the fund has performed4 Sharpe ratio can 1e used to ran) the desira1ility of funds or portfolios4 The fund that has performed 3ell comapred to other 3ill 1e ran)ed first then the others4 TRE0NOR RATIO Ty V ? p[ ? f ( H:5?5 ? p- Average ?eturn to 'ortfolio ? f - ?is) /ess ?ate of Interest4 (- (eta Coeffecient

Treynor ratio is 1ased on the concept of characteristic line4 Characteristic line gives the relation 1et3een a given mar)et return and fund9s return4 The fund9s performance is measured in relation to mar)et performance4 The ideal fund9s return rises at a faster rate than the mar)et performance 3hen the mar)et is moving up3ards and its rate of return declines slo3ly than the mar)et return. in the decline4 Treynor9s ris) premium of the portfolio is the difference 1et3een the aveage return and the ris) less rate of return4 The ris) premium depends on the systematic ris) assumed in a portfoilo4

Chapter-I4: The Ca%cu%ation!B Ana%'!i! and Interpretation MAGNUM MULTIPLIER PLUS SC1EME-8= (SBI)

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ate ,$-@ov-!$ ,$- ec-!$ "!-Can-!% ,+-Fe1-!% "&-Mar-!% ,%-Apr-!% ,%-May-!% "!-Cun-!% "&-Cul-!% "&-Aug-!% "!-Sep-!% "!-Oct-!% "!-@ov-!% "&- ec-!% ,%-Can-&! ,*-Fe1-&! "&-Mar-&! "!-Apr-&! "&-May-&! "!-Cun-&! "!-Cul-&! "&-Aug-&! "!-Sep-&! ,%-Oct-&!

Ma"nu& Mu%tip%ier P%u! Sche&e - 8= BSE-6?? i.idend > C%o!e C C NA4 0 #*!!4#2 ,%4+% #%$$4!# $4#, +!4$%* ",4"$ $4*% #+%!4", -"4%* &24*$& "!4%& -#42" #2&*4"$ -24+& ",4*! "!4#% -&4"2 #%#,42& %4#" $$4%, ",4*# +4!2 2$!"4%+ +*,!4&" +2+&4#% $&+*42# $,,242! $%"!4"& $"""4&$ $%&#4++ %,,%4+& $+!+4$, $+2$42& %"!!4,! %"+%4!# %!#&4," %##,42$ %22*4*+ %*,+4+, &!*,+4"2 &!*"%4%* &+4#, "&4," %4#"& -!4*# !4* $42* -*4+ *4%+ "42" -24*2 !42$ *4&$ !4$# -"4*! #4## &4,& !4+#" &!4# !4&, %"4$# "!"4#2 %+24"& $$4%# !4#!%* !4"* +"4,+ ##4% #$4&* &,4#* "&4%, !4""* "$4&%, !4+!2 &,4%* &%4+& &4#* !422, &!$4&* !4!&## "*4$, #+4#% #+4"+ 2&4"& 2,4++ 224#& #+4,! 2!4$% 2"4&2 2&4&! 2!42, 2"4#! 2242# 2#4$# 2+4&* 2$4*" 2%4"# *"4,* 2+4+# &&*!4& &%*%4"+ 2 +#4", &,4$! ,$4%+ -!4,2 $4"& ,4$# 24!! -&#4$& +4$& #4## -"4$2 -&4&" 24+!! #4!! -&4,* #4," ,42+ &4,& *4*! -$4+,

CD0 +"4&*% &+4%" +4+! **4#$ ,,,4%+ %!#4+" -,4"2+ -24"& &4+! #,4$ %%4,,+ 2#4#" &24*+ ,&4+2 -!4*2 "24,, "4"* #42" &$4+$ "4&! !4% *$4*# -&4!#

Gro/th NA4 0 "*4+# "%4%, $4*22 "$4&& -#42"# "+4*! -&4""$ #!4,2 +4!#+ &,4+% #24#! 2$42+ 2$4#, *"4,$ *24!$ *$4"# **4#% +&4*$ +#4$* +&4%+ +&4&2 +24,& +$4,, ++4,# $!42! $,42+ $"42$ $%4&! %&4,$ 2 ,%4!! -!4,2* $4"&% ,4$## 24!!% -,4+! +4$!2 #4#"* -"4$* -&4&" 24+! #4!! -&4,2 #4,, ,42+ &4,," *4*! ,4##

CD0 +,4$+ &+4%2 +4*" **4#2 ,,,4$$ %!24*+ -,4#& -24", &4+! #,4$+ &$4!% 2#4#! &24** ,&4$& -!4*2 "24,, "4"* #42 &$4+" "4&& !4%& *$4*# !4,%

TOTAL

&%&+,#4#

&*2"4++

&2*242* %+4*!

&2+#4#!

TOOLS FOR CALCULATION A?IT:M5TIC M5A@: A?IT:M5TIC M5A@ DV U G @ I-I 5@ +#4", ,# CALCULATION FOR STAN AR E4IATION: O'TIO@ V "4!% B?OHT: O'TIO@ %+4*! V #4!* ,#

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NA4 ,$-@ov-!$ ,%4+% ,$- ec-!$ ",4"$ "!-Can-!% "!4%& ,+-Fe1-!% "!4#% "&-Mar-!% ",4*# ,%-Apr-!% "*4$, ,%-May-!% #+4#% "!-Cun-!% #+4"+ "&-Cul-!% 2&4"& "&-Aug-!% 2,4++ "!-Sep-!% 224#& "!-Oct-!% #+4,! "!-@ov-!% 2!4$% "&- ec-!% 2"4&2 ,%-Can-&! 2&4&! ,*-Fe1-&! 2!42, "&-Mar-&! 2"4#! "!-Apr-&! 2242# "&-May-&! 2#4$# "!-Cun-&! 2+4&* "!-Cul-&! 2$4*" "&-Aug-&! 2%4"# "!-Sep-&! *"4,* ,%-Oct-&! 2+4+# &&*!4& TOTAL STA@ A? S4 2

ate

i.idend 0 ! $4*% -#42" -&4"2 +4!2 &,4$! ,$4%+ -!4,2 $4"& ,4$# 24!! -&#4$& +4$& #4## -"4$2 -&4&" 24+!! #4!! -&4,* #4," ,42+ &4,& *4*! -$4+,

E ! 24* -+4*, #4## "4%* %4+& ,24$$ -"4"# 24,, -!4,2 &4%& -&+4% #4+, &4"2 -*4%# -#4,, ,4*& !4%& -#4"2 &4&# -!42, -&4$$ "42& -&&4$&

(E)> ! "&4"* 2$4!* &%4+& &24*$ %#4,$ **%4++ &&4&22 ,+4,# !4!*,2 "4*2 ",!4#& ,,4,+ &4$,, #$4&* &+4$!$ *4$& !4$% &$4%2 &4" !4,+! "42" &,4", &"%4#+

NA4 "*4+# "%4%, "$4&& "+4*! #!4,2 #24#! 2$42+ 2$4#, *"4,$ *24!$ *$4"# **4#% +&4*$ +#4$* +&4%+ +&4&2 +24,& +$4,, ++4,# $!42! $,42+ $"42$ $%4&! %&4,$

Gro/th 0 ! $4*22 -#42"# -&4""$ +4!#+ &,4+%2 ,%4!! -!4,2* $4"&% ,4$## 24!!% -,4+! +4$!2 #4#"* -"4$* -&4&" 24+! #4!! -&4,2 #4,, ,42+ &4,," *4*! ,4##

E ! #42%2 -$42%# -24"%$ ,4%$+ $4+"2 ,#4%# -#4"&* #4,2% -&4,&* !4%#% -*4+* "4+#2 !4"+* -+4%, -24&% &4*# -!4!* -24"& !4&* -&4#% -,4$"+ ,42# -&4*,

(E)> ! ,&4&& +"4$2 ,%4&" $4%, +*4"! *,,4!! &$4*, &$4&" &4#$ !4%! #24+ &#4!, !4&# *,4+, ,*4%" ,4*% !4!!"* ,$4&% !4!,2 ,4,, $4!#$ *4#2 ,4*,

+#4",

&,4&"

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&2*242*

%+4*!

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&!+!4,*

5-IATIO@: I-I 5@ B?OHT: V +4%$ W;&!+!4,*$< W,# V*4*$

S4 V W;\<X W;@< (5TA: (5TA V @ZUDG- ;UD< ;UG< @Z U;D<X -;UD<X

W;&2,#4%$< W,#

I-I 5@ V ,#;&*2"4++#<-;%"4$##<;+#4",< ,#;&%*%4"+,< - ;%"4$##< , V !4$2!*

B?OHT: ,#;&2+#4#!#<-;%"4$##<;%+4*< ,#;&%*%4"+,< - ;%"4$##< , V !4+##

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A/':A V G-(;D<

I-I 5@ V "4!%-!4$2!;"4%&!< V - !4,""2

B?OHT: V #4!*-!4+##;"4%&!< V &4&2

S:A?'5 ?ATIO: ;?f is assumed to 1e $ =< Sharpe ratio ?p-?f S4 ividend V "4!% > !4!$ V !4"++ +4%$ Bro3th V #4!* > !4!$ V !42%2 *4*$

T?5G@O? ?ATIO: ;?f is assumed to 1e $ =< T?5G@O? ?ATIO ?p-?f ( I-I 5@ V "4!% > !4!$ V "42" !4$2!* B?OHT: #4!* > !4!$ !4+##

V 24"#

PO5ER PLAN (ICICI PRU ENTIAL):

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PO5ER PLAN S*P CNC NIFT0 ate ,$-@ov-!$ ,$- ec-!$ "!-Can-!% ,+-Fe1-!% "&-Mar-!% ,%-Apr-!% ,%-May-!% "!-Cun-!% "&-Cul-!% "&-Aug-!% "!-Sep-!% "!-Oct-!% "!-@ov-!% "&- ec-!% ,%-Can-&! ,*-Fe1-&! "&-Mar-&! "!-Apr-&! "&-May-&! "!-Cun-&! "!-Cul-&! "&-Aug-&! "!-Sep-&! ,%-Oct-&! TOTAL C%o!e ,+224&! ,%2%4&2 ,$+#4$! ,+*"4*2 "!,!4%2 "#+"4%2 ###$4%2 #,%&4&! #*"*4#2 #+",4"2 2!$"4%2 #+&&4+! 2!",4+! 2,!&4!2 #$$,4!2 #%,,4"! 2,#%4&! 2,+$4!! 2!$*4"! 2"&,42! 2"*+4*! 2#!,4#! *!,%4%2 *!&+4+! &!%2""4$ C +4#! -,4$2 -"4$* %4"& &#4%% ,$4!* -"42# $4!# ,4!* +4#, -+4", *4$& "4"# -*4&" !4$, *4*" !422 -"4*" #4## &4!" !4*# &&4*& -!4,! $24*% C
>

2#4$2 $4&, &#4%2 $*4*$ ,,#4$2 +$+4+! &,42$ *#4++ #4,+ 224,! 2"4*& #*4#& &&4&$ "+4*& !4*+ ##4!+$ !4"!" &"4&% &%4++ &4!+2 !4#, &"#4%" !4!#& &*++4"#

NA4 %4,! %4$ %42# %4&2 %4%, &&4"" &#4!# &"4,2 &#4,+ &#42$ &24$& &24!$ &*4,+ &24+% &24!" &24&, &*4&, &*42* &24% &*4*# &+4!% &+4,* &%4!* &%4&# "#24%2

i.idend 0 *42, -,4*2 -#4!$ $4#&2 &#4,& ,"4%, -24*, +4*% ,4&+ $4#" -#4*& +4$% -,4%2 -#4$& !4*! *4*& ,4+" -"4%% #4*2 ,4+! !4%% &!4#, !4#& +%4*+

CD0 #$4,# +422 &24+# +$4"# ,&"4!! *+&4&% &%4$% *&4$, #4#+ *,422 ""4+# 2"4+" -%4$2 ,%4#$ !4#%, #"4$, &42! &#4#$ ,!4*# ,4+$& !4*"" &,!4%+ -!4!$, &#%24,!

NA4 2!42& 2#4*% 2"4,* 2&4!$ 224"* *"4," +$4"# +%4#$ $24*# $+4#+ %#4$" %!4#2 %+4*, &!!4+% %24%* %*42" &!,4%# &!24+2 &!&42 &!*4,2 &!%4&& &&!4&$ &,&4*% &,,4&$ ,&&#4$#

Gro/th 0 $4,+ -,4*& -#4!%" $4"$ &#4,& ,"4$% &4#2 +4+2 ,4&" $4#& -#4*& +4%, "4,# -#4+% !42% *4*# ,4+2 -#4!& #4*$ ,4*% !4%$ &!4## !4#! %#4+,

CD0 *&4,! +4#" &24$! +$4!& ,&"4!! *+!4"2 -24&" *,4"& #4"$ *,4#! ""4+# 2"4%" &!4$, ,%4"* !4#$ ##4!, &42& &#422 ,!4+$ ,4++ !4*, &,&4,! -!4!$ &2!"42,

TOOLS FOR CALCULATION:

A?IT:M5TIC M5A@ DV UG @

I-I 5@ O'TIO@ +%4*+ V "4", ,#

B?OHT: O'TIO@ %#4+, V "4%# ,# ,*

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CALCULATION FOR STAN AR

E4IATION: Gro/th 0 !4!! $4,+ -,4*& -#4!%" $4"$ &#4,& ,"4$% &4#2 +4+2 ,4&" $4#& -#4*& +4%, "4,# -#4+% !42% *4*# ,4+2 -#4!& #4*$ ,4*% !4%$ &!4## !4#! %#4+,

ate ,$-@ov-!$ ,$- ec-!$ "!-Can-!% ,+-Fe1-!% "&-Mar-!% ,%-Apr-!% ,%-May-!% "!-Cun-!% "&-Cul-!% "&-Aug-!% "!-Sep-!% "!-Oct-!% "!-@ov-!% "&- ec-!% ,%-Can-&! ,*-Fe1-&! "&-Mar-&! "!-Apr-&! "&-May-&! "!-Cun-&! "!-Cul-&! "&-Aug-&! "!-Sep-&! ,%-Oct-&! TOTAL STA@ A? S4

NA4 %4,! %4$ %42# %4&2 %4%, &&4"" &#4!# &"4,2 &#4,+ &#42$ &24$& &24!$ &*4,+ &24+% &24!" &24&, &*4&, &*42* &24% &*4*# &+4!% &+4,* &%4!* &%4&# "#24%2

PO5ER PLAN i.idend 0 E (E)> !4!! *42, "4, &!4,# -,4*2 -24%+ "24*#!% -#4!$ -+4# 2#4+* $4#&2 24!%2 ,24%2%!" &#4,& &!4$% &&$42%,& ,"4%, ,!4* #,#4"* -24*, -$4%# +%4%,"* +4*% #4"+ &%4!%*% ,4&+ -&4&2 &4",,2 $4#" 24&& ,*4&&,& -#4*& -+4%" *,4$$#% +4$% #42+ ,!4$$#% -,4%2 -*4,+ "%4"&,% -#4$& -$4&" **4!%*% !4*! -,4+, +4"%$# *4*& "4,% &!4$,#& ,4+" -!42% !4"#$& -"4%% -+4"& 2"4#"*& #4*2 &4"" &4+*$% ,4+! -!4*, !4"$## !4%% -,4"" 24#,$% &!4#, +4& 2!4#& !4#& -,4%& $4#*$& +%4*+ "4,$2 &&,"4*2"

NA4 2!42& 2#4*% 2"4,* 2&4!$ 224"* *"4," +$4"# +%4#$ $24*# $+4#+ %#4$" %!4#2 %+4*, &!!4+% %24%* %*42" &!,4%# &!24+2 &!&42 &!*4,2 &!%4&& &&!4&$ &,&4*% &,,4&$ ,&&#4$#

E #4"" -*422 -$4!"" #4## &!4,+ &%4%2 -,4#% "4$& -&4$& #4#+ -$422 "4%$ -!4+ -$4+" -"4"2 ,4+ -&4&% -+4%2 !4+# -&4,2 -,4%* *42 -"42# #4!$+

(E)> &$4+# #,4%! *#42" &%4+& &!24#+ "%$4!! *4,! &#42& "4,+ &%4%$ +"4&! &24$# !4#% +*4,& &&4,, +4,% &4#& *"4,! !42# &42* $4+* #,4,2 &,42" &!!+4++"

5-IATIO@: I-I 5@ V W;&&,"4*2"< W,# B?OHT: W;&!!+4++"< V*4#% W,#

S4 V W;\<X W;@<

V *4$2

(5TA: (5TA V @ZUDG- ;UD< ;UG< I-I 5@ V ,#;&#%24,!<-;$24*%<;+%4*+< V!4$$, B?OHT: ,#;&2!"42,$<-;$24*%<;+%4*+< ,+ V !4$$$

, -ignan Institute of Technology-0 Science. eshmu)hi-2!$,$# @Z U;D<X -;UD<X ,#;&*++4"#< ;$24*%< ,#;&*++4"#< - ;$24*%< ,

A/':A:

A/':A V G-(;D<

I-I 5@ V "4",-!4$$,;"42+< V !4&+&

B?OHT: V "4%#-!4$$$;"42+< V !4++

S:A?'5 ?ATIO :;?f is assumed to 1e $=<

Sharpe ratio ?p-?f S4

ividend V "4",> !4!$ V !4#+, *4$2

Bro3th V "4%# > !4!$ V !42%# *4#%

T?5G@O? ?ATIO :;?f is assumed to 1e $=< T?5G@O? ?ATIO ?p-?f ( I-I 5@ V "4",> !4!$ !4$$, V "4*+ B?OHT: "4%# > !4!$ !4$$$ V #4"#

The Co&pari!on: MAGNUM MULTIPLIER 688= PLUS (SBI) i.idend +4%$ !4$2!* +4%$ -!4,""2 Gro/th #4!* !4+## *4*$ &4&2 PO5ER PLAN (ICICI PRU ENTIAL) i.idend "4", !4$$, *4$2 !4&+& Gro/th "4%# !4$$$ *4#% !4++ ,$

A.era"e Return Beta S A%pha

-ignan Institute of Technology 0 Science. eshmu)hi-2!$,$#

Sharpe ratio Tre'nor ratio

!4"++ "42"

!42%2 24"#

!4#+, "4*+

!42%2 #4"#

ANAL0SIS * INTERPRETATION: The S(I Ma"nu& Mu%tip%ier p%u!688= compared to ICICI 'rudential Po/er P%an7 The larger the Sharpe ratio. 1etter the fund is performing4 So. the S(I Ma"nu& Mu%tip%ier p%u! 688= fund has a %e!!er Sharpe ratio compared to ICICI '?Q 5@TIA/ Po/er P%an. all options sho3 the positive value. this means funds are performing 3ell4 Since the mar)et has risen up. this has resulted in funds positive return4 Since the funds o16ective is to invest in iversified portfolios the 1enchmar)s inde7 has performed ividend option 0 Bro3th option has given high returns

very good. 3hich has resulted in good performance of the fund4 As per the Tre'nor inde,. the S(I Ma"nu& Mu%tip%ier 688= has given higher returns in Bro3th option compared to ICICI '?Q 5@TIA/ Po/er P%an due to 3hich the ris) is also high4 (ut in case of S(I Ma"nu& Mu%tip%ier 688= the returns are lo3 and the ris) is high in compared to ICICI '?Q 5@TIA/ Po/er P%an7 As per (eta for dividend option and gro3th option of ICICI '?Q 5@TIA/ PO5ER PLAN has got the highest ris)4 Hhen mar)et is & it moves at !4$$, in dividends 0 !4$$$ in Bro3th compared to S(I Ma"nu& Mu%tip%ier 688=4 Overall. all the options are performing 3ell4 ividend option

-ignan Institute of Technology 0 Science. eshmu)hi-2!$,$#

,%

EMERGING BUSINESS FUN SBI:

ate ,$-@ov-!$ ,$- ec-!$ "!-Can-!% ,+-Fe1-!% "&-Mar-!% ,%-Apr-!% ,%-May-!% "!-Cun-!% "&-Cul-!% "&-Aug-!% "!-Sep-!% "!-Oct-!% "!-@ov-!% "&- ec-!% ,%-Can-&! ,*-Fe1-&! "&-Mar-&! "!-Apr-&! "&-May-&! "!-Cun-&! "!-Cul-&! "&-Aug-&! "!-Sep-&! ,%-Oct-&! TOTAL

C%o!e ",%24*! "2%*4$2 "#,*4+* ",",4&& "2,"42" #&#!4#, 22,!4,2 2#%,4!" 2%#!4"$ *!##4*& *22,4+2 *&#,4#" *2$#4%$ *$#,4,2 *2!%4%! *2&$4"$ *%&%422 +!#,4*$ *+$,4"+ +!%,4,! +,!24,, +,$%4+# +%$#4#2 $!"*4$$ &#&+&*4"

EMERGING BUSINESS FUN SBI BSE-F?? i.idend > C C NA4 0 CD0 NA4 !4!!! !4!!! ,%4+% ! ! "*4+# %4&# $"422 ",4"$ $4*% +%4#, "%4%, -#4+, ,,4"* "!4%& -#42" ,&4"$ "$4&& -24*$ ",4,* "!4#% -&4"2 +4** "+4*! %4!& $&4,% ",4*# +4!2 *"42, "%4## &+42! "!*42, "*4$, &,4$! ,,# #24#! ""4", &&&!4* #+4#% ,$4%+ %*24,$ 2$42+ -!42& !4,* #+4"+ -!4,2 !4&, 2$4#, $4&* **4*# 2!4+2 +4&" 2$4&$ *"4,$ &4+2 "4!+ 2,4++ "4%$ *4%* *24!$ $4#! +!4** 224#& 24!! #, *$4"# -*4,* "%4,& #+4,! -&#4$& %,4+& **4#% +4,! 2&4%! 2!4$% +4$& 2*4," +&4*$ "4%! &24,* 2"4&2 #4## &+4"& +#4"2 -#4$2 ,"42% 2&4&! -"4$2 &$4*+ +&4%+ !4&" !4!& 2!42, -&4&" -!4&# +&4&2 *4&2 "+4$+ 2"4#! 24+!! "24!2 +24,& &4++ "4&* 2242# #4!!+ +4!% +$4,, -"4*% &"4** 2#4$# -&4,* #4*2 ++4,# #42* ,!4$* 2+4&* #4," &%4" $!42! &4* ,42" 2$4*" ,42+ #4&& $,42+ &4&+ &4"+ 2%4*+ &4++ ,4!+ $"42$ %42, %!4$, *"4,* *4!&* 2+4,+ $%4& !4*2 !4#" 2+4+# -$4+, !4,* %&4,$ %$4,+ ,!+$4!! &&2%4% +#4,*

Gro/th 0 ! $4*2 -#42" -&4"" #4%! &24&& ,%4!! -!4,2 $4"& ,4$# 24!! -,4+! +4$! "4+, -"4,! -&4&# 24+! #4!! -&4,2 #4,, ,42+ &4,, *4*! ,4##

CD0 ! +%4!* ,&4"$ +422 ##4&2 ,*#4#, %**4,$ !4&, *+4$! #4%+ #, &*4%! 2*4&* &#42! &242, -!4&# "24!2 +4!$ #4*& &%4,# #4&& &4#, *,4$" &42$* &+"*4*2

&+$"4&" &2*#4,# %+4+&

TOOLS FOR CALCULATION

A?IT:M5TIC M5A@ DV UG @

I-I 5@ O'TIO@ V +#4,* V "4&! ,#

B?OHT: O'TIO@ V %+4+& V #4!+ ,#

CALCULATION FOR STAN AR

E4IATION: "!

-ignan Institute of Technology 0 Science. eshmu)hi-2!$,$#

ate ,$-@ov-!$ ,$- ec-!$ "!-Can-!% ,+-Fe1-!% "&-Mar-!% ,%-Apr-!% ,%-May-!% "!-Cun-!% "&-Cul-!% "&-Aug-!% "!-Sep-!% "!-Oct-!% "!-@ov-!% "&- ec-!% ,%-Can-&! ,*-Fe1-&! "&-Mar-&! "!-Apr-&! "&-May-&! "!-Cun-&! "!-Cul-&! "&-Aug-&! "!-Sep-&! ,%-Oct-&! TOTAL STA@ A?

NA4 ,%4+% ",4"$ "!4%& "!4#% ",4*# "*4$, #+4#% #+4"+ 2!4+2 2,4++ 224#& #+4,! 2!4$% 2"4&2 2&4&! 2!42, 2"4#! 2242# 2#4$# 2+4&* 2$4*" 2%4*+ *"4,* 2+4+# &&2%4%

EMERGING BUSINESS PLAN SBI i.idend 0 E (E)> NA4 !4!! !4!!! !4!!! "*4+# $4*% 242% "&4,# "%4%, -#42" -+4*" 2$4,& "$4&& -&4"2 -#4#2 &%4$! "+4*! +4!2 "4%2 &24*! "%4## &,4$! %4+ %#4!% #24#! ,$4%+ ,24$+ **%4,2 2$42+ -!4,2 -"4"2 &&4,, 2$4#, +4&" #4!" &*4,# *"4,$ "4%$ !4$$ !4++ *24!$ 24!! &4% "4*& *$4"# -&#4$& -&+4%& ",!4+* **4#% +4$& #4+& ,,4&$ +&4*$ #4## &4"# &4+% +#4"2 -"4$2 -*4%2 #$4"! +&4%+ -&4&" -#4," &+4$% +&4&2 24+!! ,4* *4+* +24,& #4!!+ !4%!+ !4$,, +$4,, -&4,* -#4"* &%4!! ++4,# #4," &4&" &4,+ $!42! ,42+ -!42" !4,$ $,42+ &4++ -&4"" &4+* $"42$ *4!&* ,4%&* $42! $%4& -$4+, -&&4$, &"%4+& %&4,$ +#4,* ,4%*" &2!%4&#, &2*#4,#

Gro/th 0 ! $4*2 -#42" -&4"" #4%! &24&& ,%4!! -!4,2 $4"& ,4$# 24!! -,4+! +4$! "4+, -"4,! -&4&# 24+! #4!! -&4,2 #4,, ,42+ &4,, *4*! ,4## %+4+&

E ! #42$ -$4* -24# !4$" &&4!# ,#4%" -#4", #4,# -&4," !4%" -*4++ "4+" -!4"2 -+4,+ -24,& &4*" -!4!+ -24", !4&2 -&42 -,4$2 ,42" -&4*" #4!+

(E)> ! ,!4%+ +"4%* ,%4&* !4+! &,&4$$ *,&42! &$4** &+4%+ &42& !4$* #24$" &"4%& !4&, 2,4$2 ,+4&# ,4*2 !4!!#% ,$4"! !4!,, ,4,2 $4&, *4#! ,4*2 &!%+4#+,

5-IATIO@: S4 S4 V W;\<X W;@< I-I 5@ V W;&2!%4&#,< V +4%# W,# B?OHT: W;&!%+4#+,< V*4++# W,#

(5TA: (5TA @ZUDG- ;UD< ;UG< @ZU;D<X -;UD<X I-I 5@ ,#;&+$"4&"<-;%$4,+<;+#4,*< ,#;,!+$< - ;%$4,+< , V !4$$, A/':A: A/':A I-I 5@ B?OHT: "& B?OHT: ,#;&+$"4&"<-;%$4,+<;%+4+&< ,#;,!+$< - ;%$4,+< , V !4$,2

-ignan Institute of Technology 0 Science. eshmu)hi-2!$,$#

V G-(;D<

V "4&!-!4$$,;#4!%< V -!42!+

V #4!+-!4$*+;#4!%< V !42,"

S:A?'5 ?ATIO :;?f is assumed to 1e $=< Sharpe ratio ? p -? f S4 V +4%# ividend Bro3th

"4&! > !4!$ V !4"$! V #4!+ > !4!$ V !42$% *4++#

T?5G@O? ?ATIO :;?f is assumed to 1e $=< T?5G@O? ?ATIO ? p-?f ( I-I 5@ V "4&! > !4!$ V "4#, !4$$, B?OHT: #4!+ > !4!$ V #4$"* !4$,2

EMERGING STAR FUN ICICI PRU ENTIAL:

EMERGING STAR FUN ICICI PRU ENTIAL BSE -F?? ate ,$-@ov-!$ ,$- ec-!$ "!-Can-!% ,+-Fe1-!% "&-Mar-!% ,%-Apr-!% ,%-May-!% "!-Cun-!% "&-Cul-!% "&-Aug-!% "!-Sep-!% "!-Oct-!% "!-@ov-!% "&- ec-!% ,%-Can-&! ,*-Fe1-&! C%o!e ",%24*! "2%*4$2 "#,*4+* ",",4&& "2,"42" #&#!4#, 22,!4,2 2#%,4!" 2%#!4"$ *!##4*& *22,4+2 *&#,4#" *2$#4%$ *$#,4,2 *2!%4%! *2&$4"$ C !4!!! %4&# -#4+, -24*$ %4!& &+42! ""4", -!42& $4&* &4+2 $4#! -*4,* +4,! "4%! -#4$2 !4&" C> !4!!! $"422 ,,4"* ",4,* $&4,% "!*42, &&&!4* !4,* **4*# "4!+ +!4** "%4,& 2&4%! &24,* ,"42% !4!& NA4 +4"! $4&& +4"* *4%# +4#" $4#2 &&4+! &&4+* &,4+% &"4+, &#4#* &#4"$ &24#& &*4,% &#4+$ &#4%# i.idend 0 ! &&4!% -%4,# -24+! +4!* &"4+, "$4#* !42& $4+2 +4,+ 24#! -!422 +4&* 24+& -%4,+ &4!$ CD0 ! &!&4#& #"4*2 ",4#& *"4*& ,#!4,# &,$&42# -!4,* +&4#+ &,4+, #24"! "4#* 2&42+ ,,4,+ ##4%2 !4&# NA4 &"4"* &#4$2 &"4"# &,4+, &"4"# &24#$ ,&4#, ,&42" ,"4#& ,24&& ,*4&% ,*4"& ,$4&% ,%4$& ,%4*% "!4!! Gro/th 0 ! &&4&2 -&!4&* -#4*# #4$+ &*4!# "$4"+ !42& $4+" +4,* #4"! !4#2 +4&# 24+# -!4#! &4!# CD0 ! &!&4%" #$4!! ,*4# #"4%& ,$!4+" &,+$42 -!4,* +&4,2 &,4+! "*4&" -,4$* 2&4## ,,4#& &4%2, !4&"2 ",

-ignan Institute of Technology 0 Science. eshmu)hi-2!$,$#

"&-Mar-&! "!-Apr-&! "&-May-&! "!-Cun-&! "!-Cul-&! "&-Aug-&! "!-Sep-&! ,%-Oct-&! TOTAL

*%&%422 +!#,4*$ *+$,4"+ +!%,4,! +,!24,, +,$%4+# +%$#4#2 $!"*4$$ &#&+&*4"

*4&2 &4++ -"4*% #42* &4* &4&+ %42, !4*2 %$4,+

"+4$+ "4&* &"4** ,!4$* ,42" &4"+ %!4$, !4#" ,!+$4!!

&*4!! &*4$+ &*4!% &*4+" &+4&+ &+42& &$4*& &$4"% ","4&%

+4!% 24#" -#4*, "4%+ ,4*" &4%$ *4,$ -&4&$ &!"4!*

#"4*" %4*,# &+4!* &$4&" #4,!$ ,4"& 2%4$! -!4+* ,&*$42#

",4&# ""4$$ ",4"& ""4*& "#42+ "24", "+4"+ "*4%# *,!4$%

+4&" 24#& -#4*" #4!, ,4$2 ,4&* 24$! -&4&2 &&,4!#

#"4$+ %42$ &+4!%% &$4"# #42+! ,42"$ 224,2 -!4+# ,&,,4%*

TOOLS FOR CALCULATION

A?IT:M5TIC M5A@ DV UG @

I-I 5@ O'TIO@ &!"4!* V #4"& ,#

B?OHT: O'TIO@ &&,4!# V #4** ,#

-ignan Institute of Technology 0 Science. eshmu)hi-2!$,$#

""

CALCULATION FOR STAN AR

E4IATION:

EMERGING STAR FUN (ICICI) I4I EN GRO5T1 ATE ,$-@ov-!$ ,$- ec-!$ "!-Can-!% ,+-Fe1-!% "&-Mar-!% ,%-Apr-!% ,%-May-!% "!-Cun-!% "&-Cul-!% "&-Aug-!% "!-Sep-!% "!-Oct-!% "!-@ov-!% "&- ec-!% ,%-Can-&! ,*-Fe1-&! "&-Mar-&! "!-Apr-&! "&-May-&! "!-Cun-&! "!-Cul-&! "&-Aug-&! "!-Sep-&! ,%-Oct-&! NA4 +4"! $4&& +4"* *4%# +4#" $4#2 &&4+! &&4+* &,4+% &"4+, &#4#* &#4"$ &24#& &*4,% &#4+$ &#4%# &*4!! &*4$+ &*4!% &*4+" &+4&+ &+42& &$4*& &$4"% ","4& TOTAL % &!"4!* "4% &%%24$+# *,!4$% &&,4!# #4$& &$2*42# 0 ! &&4!% -%4,# -24+! +4!* &"4+, "$4#* !42& $4+2 +4,+ 24#! -!422 +4&* 24+& -%4,+ &4!$ +4!% 24#" -#4*, "4%+ ,4*" &4%$ *4,$ -&4&$ E !4!!! *4+$ -&"422 -&!4!& ,4+2 %4#& "#4&2 -"4$ #4## ,4%* &4!% -#4$* ,4$2 &4# -&"42$ -"4," ,4+$ &4&, -$4%" -!4"# -&4*$ -,4"" &4%+ -24#% (E)> !4!!! #24%* &$"4*! &!!4,! +42* $$42# &&**4,, &#4## &%4+& $4+* &4&$ ,"4*& $4&, &4%* &$#4#& &!4#" +4+, &4,2 +%4+# !4&& ,4$, 24#, "4$$ "!4&# NA4 &"4"* &#4$2 &"4"# &,4+, &"4"# &24#$ ,&4#, ,&42" ,"4#& ,24&& ,*4&% ,*4"& ,$4&% ,%4$& ,%4*% "!4!! ",4&# ""4$$ ",4"& ""4*& "#42+ "24", "+4"+ "*4%# 0 ! &&4&2 -&!4&* -#4*# #4$+ &*4!# "$4"+ !42& $4+" +4,* #4"! !4#2 +4&# 24+# -!4#! &4!# +4&" 24#& -#4*" #4!, ,4$2 ,4&* 24$! -&4&2 E ! *4#% -&#4$, -%4" !4,& &&4"$ ""4+& -#4&2 #4!+ ,4* -!4"* -#4,& ,4#$ &4!$ -24!* -"4*, ,4#+ !4+2 -%4,% -!4*# -&4$& -,42 &4&# -24$& (E)> ! #,4&, ,&%4*" $*4#% !4!## &,%42! &&"*4"* &+4,, &*42* *4+* !4&, &+4+, *4&2 &4&* ,24*! &"4&! *4&! !42* $*4"! !4#! "4,+ *4,2 &4"! ""4+2

-ignan Institute of Technology 0 Science. eshmu)hi-2!$,$#

"#

STA@ A?

5-IATIO@:

S4 S4 V W;\<X W;@<

I-I 5@ V W;&%%24$+#< V %4&" W,#

B?OHT: W;&$2*42#< V$4$& W,#

(5TA: (5TA V @ZUDG- ;UD<;UG< @Z U;D<X -;UD<X I-I 5@ ,#;,&*$42"$<-;%$4,+<;&!"4!*< ,# ;,!+$< - ;%$4,+< , V &4!#, B?OHT: ,#;,&*$42"$<-;%$4,+<;&&,4!#< ,# ;,!+$< - ;%$4,+< , V &4!,!

A/':A: A/':A V G-(;D< I-I 5@ V #4,%-&4!#,;#4"&< -!4&% S:A?'5 ?ATIO :;?f is assumed to 1e $=4< B?OHT: V #4**-&4!,!;#4"&< !4,*

Sharpe ratio V ?p-?f S4

ividend V #4"& > !4!$ %4&"

V !4#*"

Bro3th V #4** > !4!$ $4$&

V !4#2*

T?5G@O? ?ATIO :;?f is assumed to 1e $=4<

-ignan Institute of Technology 0 Science. eshmu)hi-2!$,$#

"2

T?5G@O? ?ATIO ?p-?f (

I-I 5@ V #4"& > !4!$ V #4!* &4!#,

B?OHT: #4** > !4!$ &4!,! V #42

The Co&pari!on: EMERGING BUSINESS FUN (SBI) i.idend "4&! !4$$, +4%# -!42!+ !4"$! "4#, Gro/th #4!+ !4$,2 *4++# !42," !42$% #4$"* EMERGING STAR FUN (ICICI PRU ENTIAL) i.idend #4"& &4!#, %4&" -!4,! !4#*" #4!* Gro/th #4** &4!,! $4$& !4,* !4#2* #42

A.era"e return Beta S A%pha Sharpe Ratio Tre'nor Ratio

ANAL0SIS * INTERPRETATION: The ICICI EMERGING STAR FUN ividend option has given high returns compared to S(I

EMERGING BUSINESS FUN 4 Also in gro3th option ICICI 'rudential EMERGING STAR FUN has given high returns compared to S(I EMERGING BUSINESS FUN 7 The larger the Sharpe ratio. 1etter the fund is performing4 So. the S(I EMERGING BUSINESS FUN FUN has a greater Sharpe ratio compared to ICICI '?Q 5@TIA/ EMERGING STAR FUN i.idend option ICICI '?Q 5@TIA/ EMERGING STAR is 1etter performing fund compared to S(I EMERGING BUSINESS FUN . all options in Gro/th option4 (ut in case of

sho3 the positive value. and this means funds are performing 3ell4 -ignan Institute of Technology 0 Science. eshmu)hi-2!$,$# "*

Since the mar)et has risen up. this has resulted in funds positive return4 Since the funds o16ective is to generate capital appreciation 1y actively investing in diversified mid cap stoc)s4 The 1enchmar)s inde7 has performed very 3ell. 3hich has resulted in good performance of the fund4

The negative value of Alpha incase of S(I EMERGING BUSINESS FUN B 3hich has resulted in lo3 returns compared to ICICI '?Q 5@TIA/ EMERGING STAR FUN in ividend Option7 As per the Treynor inde7. the ICICI '?Q 5@TIA/ EMERGING STAR FUN returns compared to S(I EMERGING BUSINESS FUN B in option the returns are lo3 and the ris) is high4 has given higher ividend option due to 3hich the

ris) is also high4 (ut in case of ICICI '?Q 5@TIA/ EMERGING STAR FUN B in Bro3th The (eta for dividend option and gro3th option of S(I EMERGING BUSINESS FUN is !4$$,

3hich indicates that one percent change in mar)et inde7 return has caused !4$$, percent change in the stoc) return4 This sho3s that the stoc) is less volatile compared to the mar)et4 Incase of ICICI '?Q 5@TIA/ EMERGING STAR FUN 1eta for dividend option is &4!#, 3hich indicates that one percent change in mar)et inde7 return has caused &4!#, per cent change in the stoc) return4 This sho3s that the stoc) moves in tandem 3ith the mar)et4 Chapter 4: The Findin"! and Reco&&endation! The Findin"!: o It is very difficult for an investor to 6ust select schemes for investments in any fund4 (efore investing. the investor should go for a detailed study of the fund. 3hich includes portfolio analysis. type of fund and its return for last one year. three year. and since inception4 0 the ris) involved in each fund. 3hich is mentioned in the Fact Sheet4 o The (eta of S(I MAGNUM MULTIPLIER 688= PLUS is !4$2!* for dividend option 3hich indicates that one percent change in mar)et inde7 return has caused !4$2!* percent change in the stoc) return4. for gro3th option it is !4+## 3hich indicates that one percent change in mar)et inde7 return has caused !4+## percent change in the stoc) return4 This sho3s that the stoc) is volatile compared to the mar)et4 In case of ICICI '?Q 5@TIA/ PO5ER PLAN 1eta for dividend option is !4$$, 3hich indicates that one percent change in mar)et inde7 return has caused !4$$, per cent change in the stoc) return. for gro3th option it is !4$$$ 3hich indicates that one percent change in mar)et inde7 return has caused !4$$$ per cent change in the stoc) return4 This sho3s that the stoc) is less volatile compared to the mar)et4

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o The (eta for dividend option of S(I EMERGING BUSINESS FUN

is !4$$, 3hich indicates that

one percent change in mar)et inde7 return has caused !4$$, percent change in the stoc) return4 This sho3s that the stoc) is less volatile compared to the mar)et4 In case of ICICI '?Q 5@TIA/ EMERGING STAR FUN 1eta for dividend option is &4!#, 3hich indicates that one percent change in mar)et inde7 return has caused &4!#, per cent change in the stoc) return4 This sho3s that the stoc) moves in tandem 3ith the mar)et4 o The negative value of Alpha incase of ICICI '?Q 5@TIA/ EMERGING STAR FUN dividend

option 3hich has resulted in 1etter returns compared to S(I EMERGING BUSINESS FUN 7 o The larger the Sharpe ratio. 1etter the fund is performing4 So. the ICICI '?Q 5@TIA/ PO5ER PLAN fund has a greater Sharpe ratio compared to S(I MAGNUM MULTIPLIER 688= PLUS in ividend Option. all options sho3 the positive value. this means funds are performing 3ell4 o Treynor ratio is similar to Sharpe ratio4 It also spea)s a1out the ris) premium associated 3ith the fund4 :igher the ratio 1etter the fund has performed4 The only difference 1et3een these t3o schemes is that the Sharpe ratio ta)es in to account 1oth systematic and unsystematic ris) 3here as Treynor ratio ta)es in to consideration only systematic ris)4 The Reco&&endation!: o The financial advisory is recommended that they should first analyze the needs of the investors and recommend that fund 3hich fulfills the re8uirements of the investor4 The ris) ta)ing a1ility of the investor should also 1e analyzed 1y loo)ing into his income. nature of 3or). age of the investor. and time period of the investment4 o As Treynor ratio spea)s a1out the ris) premium associated 3ith the fund4 :igher the ratio 1etter the fund has performed4 Compared to the t3o funds of SBI * ICICI PRU ENTIAL the EMERGING BUSINESS FUN of SBI has a higher Treynor ratio in Bro3th Fund and dividend fund of ICICI PRU ENTIAL 3hich relates to e7cess return over ris) free rate so I 3ould recommend that the advisor should concentrate on these fund 0 recommend the investors the same4 o If the investor is recommended any of the S(I fund then he should 1e recommended to invest in SBI EMERGING BUSINESS FUN 3ith a gro3th option. 3hich 3ould give a very good return. and redeem it in 1et3een if there is do3n fall in the mar)et since it is a Sectorial fund4

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o For a long term investment in diversified e8uity fund. Gro/th option in MAGNUM MULTIPLIER 688= PLUS o# SBI and i.idend Option in PO5ER PLAN o# ICICI PRU ENTIAL is goodA ta)ing ris) into consideration and its past performance has 1een good4 o Complete information should 1e provided regularly to the advisors as 3ell as to the investors to )eep them updated a1out developments4 As the customers are not a3are. the company should see ho3 1est it advises the investors and also provide the entire information a1out the Mutual Fund4

Chapter 4I: The Conc%u!ion CONCLUSION: The Blo1al mar)et is fast gro3ing in investment 1usiness4 Countries li)e QS. 3hole of 5urope spread their investment in different investment alternatives 3ith the help of advisory services to recommend investor4 In Indian scenario the investments are spread over (an) eposits. Savings Certificate. 'ost Office. 58uity

Mar)ets and the latest Mutual Fund4 Since Mutual Funds are su16ect to mar)et ris) the investor ta)e help of advisory services for financial planning 3hich helps the investor to ta)e calculated ris)4 It 3as in &%%2. the scenario got changed 3hen depository act 3as passed and 'A@ card details and emat account 3as made compulsory for all those investor 3ho are investing a heavy amount4 So as to protect the interest of the investors4 From Culy , of ,!!+ it has 1een made mandatory to have 'A@ card details. this 3ill enhance the faith of investors in stoc) mar)et and many investor 3ould come for3ard to invest in mutual fund 4 @o dou1t. 3atching the value of investments go do3n day after day can 1e pretty tough4 :o3ever. the pain 1ecomes more 1eara1le if one follo3s a proper investment plan and invests for the long term4 :aving a 3ell diversified portfolio as 3ell as a plan to re1alance it from time to time also helps a great deal4 @o 3onder. Mutual fund is considered to 1e the 1est 3ay to invest in the stoc) mar)et4 The mutual fund industry has gained a higher gro3th in the recent years4 There are around "# Asset Management Companies 3hich are currently operating and the num1ers of Mutual funds are over *"! -ignan Institute of Technology 0 Science. eshmu)hi-2!$,$# "%

funds. so it is difficult to analyze each and every fund in order to )no3n their ris)iness and return4 Some tools are used to find ris) and return of the fund. 3hich helps an investor to find out their ris)4 The schemes ta)en for study proved to 1e a good investment avenue for all the investors as the ris) associated 3ith these schemes are lo3 and they are yielding a very good return4 The volatility in the mar)et might have affected the ratios 1ut definitely not the performance of the schemes4 The schemes have 1een the one of the 1est schemes of SBI MF * ICICI PRU ENTIAL 4

LIMITATIONS: The analysis is done on the 1asis of past performance of the funds4 (ut the past performance may not 1e an indicator of future performance4 'erformance of mutual funds is largely affected 1y environmental factors. 3hich are 1eyond the control of investors4 I have done the performance evaluation only for T3o years ;@ov !$-Oct &!<A from this data 3e cannot get the results accurately4 I have compared t3o funds of S(I 0 ICICI. 3hich may not represent the entire Mutual Fund industry4 I have chosen only t3o mutual fund schemes. 3hereas there are numerous mutual funds availa1le4 I 3as given a time period of Thirty the MF industry4 BIBLIOGRAP10: 3334s1imf4com 3334amfiindia4com -ignan Institute of Technology 0 Science. eshmu)hi-2!$,$# #! ays Only. 3hich may not suffice the re8uired tenure to study

33341seindia4com 3334nseindia4com 3334investopedia4com 3334valueresearchonline4com 3334moneycontrol4com 3334mutualfundsindia4com

Re#erence $oo@!: Security Analysis 0 'ortfolio Management - 'rasanna Chandra - Fran) S4?eilly and Seith C4(ro3n (usiness Statistics B4C4 (eri4 S ' Bupta4

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