A

Project Report
On
MUTUAL FUNDS: Comparison of
various schemes under equity
Submitted By:
Yashika Sharma

In partial fulfillment of the award of the degree of

Master of Business Administration

University School of Management

Kuruksheta University Kurukhetra

CERTIFICATE
This is to certify that this project report Mutual Funds: Comparison of various schemes under
equity is the bona fide work of Yashika Sharma who carried out the project under my
supervision

Date:

(Signature)
Anil Kumar Kapoor
Manager- financial Planning
Master Trust Ltd.

ACKNOWLEDGEMENT
It gives me immense pleasure to present the project report entitled MUTUAL FUNDS:
Comparison of various schemes under equity Preservation, inspiration and motivation have
always played a key role in the success of any venture. In the present world of competition and
success, training is like a bridge between theoretical and practical working; willingly I prepared
this particular Project.
I am highly indebited to Mr. Chawla, Ms. Rinkoo Vashisht & Mr. Kapoor for their guidance and
constant supervision as well as for providing necessary information regarding the project and
also for their support in completing the project.
I am also thankful to all the friends and family members.

Yashika Sharma

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TABLE OF CONTENT
PARTICULERS
Executive Summary
Objective
Introduction of the company Master Trust LTD.
Mutual funds : Basics, History, Types & pros and
cons
Equity funds explained
Fund houses:
ICICI prudential
Reliance
SBI
Comparison of Various schemes under equity
Conclusion
Latest Amendments in Mutual Funds
References

PAGE
NUMBER

EXECUTIVE SUMMERY
The Mutual Fund is an untapped area which is bound to be the next growth story. While this area
had been on a downward track since 2008, it has started showing signs of recovery. This project
emphasis on, Mutual Funds: Comparison of various schemes under equity, conducted at
Master Trust Ltd. In this project I have analyzed the Mutual Funds Schemes, particularly the
Equity Diversified open ended (growth) schemes and compared schemes of various fund houses,
namely ICICI PRUDENTIAL, SBI and RELIANCE to evaluated in which scheme to invest &
from which to switch and current performance and position of these schemes as well.
Taking into consideration the various mutual fund schemes under equity I have chosen:

Future Outlook
Quaterly, Half Yearly and Yearly performance
Top holdings and weightage to them
Top sectors and weightage to them
Latest NAV and
Management
Entry & Exit loads

As the various tools for evaluation.

OBJECTIVES OF THE STUDY

Primary Objective:
Comparison of similar schemes of different fund houses, their evaluation and which scheme is
best to invest and from where the money should be taken out. Study of various fund houses, their
management and the future outlook.
Secondary Objective:
Study of the basic Mutual Fund Industry
Fundamental Analysis

MASTER TRUST LTD

OVERVIEW
Master Trust Group is one of the leading financial services company in India. We have a strong
belief in nurturing investment culture, attitude and inculcating a very strong approach towards
value investing forms the central part of any sound investment philosophy. With an impeccable
track record in client servicing of over two decades, we have now grown to 650+ strong
employee organizations with over 1, 50,000+ client relationships. At Master Trust, our endeavor
is to constantly meet every financial need of our esteemed clients.
mastertrust - is a one point shop for all the investment needs of a customer. The one-stop
destination is specifically targeted towards the retail customers who require a very strong
relationship driven approach towards value investing. The philosophy of mastertrust has its
genesis from Master Trust groups belief in nurturing the investment culture towards value
investing.
MISSION
To always earn the right to be our clients first choice through personal & social wealth
maximization
VISION
To be well diversified financial shop for wealth creation and being an ideal service provider in
our domain of business
CORPORATE PHILOSOPHY
Becoming an expert at anything takes a strong will, unyielding determination and pure ability
VALUE SYSTEM

GROUP MILESTONE
YEAR
1985
1986

1987

1993
1994
1995

1997
1999
2001
2002
2004

2006
2007
2008
2009
2010

MILESTONE
The seeds of the group were swon as arora financial consultants(P)Ltd. (later
converted into master trust ltd.)
Acquired membership of Ludhiana stock exchange under the name of M/S H
Arora and co (later converted intoa corporate membership as master share and
stock brokers ltd.)
Became members of DSE (Delhi Stock Exchange) under the name of M/s harjeet
arora and co. (later converted into a corporate membership as MTL share and
stock brokers ltd.)
Acquired the status of SEBI accredited category| Merchant Bankers
Became dealers of OTCEI (Over The Counter Exchange Of India)
Master Capital Services Ltd. Became corporate members of NSE (National Stock
Exchange of India Ltd.)
Master Trust Ltd. Came out with an IPO (Initial Public Offer) of equity share &
fully convertible debentures
Upgraded dealership of OTCEI to membership
Became RBI approved Fully Fledge Money Changers
Launched depository services as a Depository Participant of NSDL
Launched depository services as a Depository Participant of CSDL
Commenced trading in Derivatives Segments in NSE
Entered into insurance business as corporate agents for Life and General
Insurance
Became member of NCDEX (National Commodity Derivatives Exchange Ltd.)
and MCX (Multi Commodity Exchange of India Ltd.)
Introduced Virtual Private Network (VPN)
Became insurance broker under name of M/s Master Insurance Brokers.
Acquired the membership of BSE (Bombay Stock Exchange Ltd.)
Commenced internet trading and margin funding against shares
Set up regional offices in Baroda, Kolkata and Hyderabad
Introduced Currency Derivatives Trading Through MCX-SX & NSE
Established an arbitrage desk implemented Master Swift Established CRM
Trading turnover peaks US$ 1 billion/day of group companies
Became Member of NSEL and ACE Arbitrage desk activated spot commodity
rebranding exercise of retail services

BOARD OF DIRECTORS
Mr. Harjeet Singh Arora (F.C.A., F.C.S.), is the Managing Director of
the Company and has more than 25 years of experience in corporate,
financial and merchant banking matters. He is one of the promoters of the
company and has been involved in the secondary and primary markets
right from the incorporation of the company.
Mr. R.K.Singhania (F.C.A.) is well known personality in the corporate
circles. He is the Director of the Company and was formerly the Director
(Finance) with Indias premier Oswal group for more than 10 years. He is
one of the promoters and has rich experience in the corporate M&A space
with deals worth Rs. 50 billion executed in FY 2005-06 alone. He is
having more than 25 years experience in corporate strategy, tax planning &
financial engineering internationally.
Mr. Pawan Chhabra (F.C.A.) is having a rich experience of more than 20
years in primary and secondary share market and merchant banking
activities. His primary responsibility includes liasioning with SEBI, RBI,
NSE, BSE, MCX, NCDEX and FI/ FII business development.

Mr. G.S. Chawla (B.E., M.B.A., D.B.F.) has worked with a public
financial Institution for more than 12 years. He has 15 years rich
experience of capital market, finance and other related activities. His
primary responsibility involves development of PMS business, advisory &
research, merchant banking, insurance broking and technology initiatives.
Mr. Harinder Singh (B.Com, I.C.W.A.inter) has been monitoring the
secondary market operations of the company for the last 12 years. He
looks after compliances, secondary & commodity market, margin funding,
mutual fund distribution, IPOs, arbitrage and business development.

Mr. Sanjay Sood (F.C.A.) is having more than 15 years of experience in

Merchant Banking, Foreign Exchange Management, Financial and Retail
Services. He is responsible for looking after the FX business and the
depository business.

MUTUAL FUNDS
BASICS OF MUTUAL FUNDS
Before explaining what is mutual fund, its very important to know the area in which mutual
funds works, the basic understanding of stocks and bonds.
STOCKS
Stocks represent shares of ownership in a public company. Examples of public companies
include Reliance, ONGC and Infosys. Stocks are considered to be the most common owned
investment traded on the market.
BONDS
Bonds are basically the money which you lend to the government or a company, and in return
you can receive interest on your invested amount, which is back over predetermined amounts of
time. Bonds are considered to be the most common lending investment traded on the
market. There are many other types of investments other than stocks and bonds (including
annuities, real estate, and precious metals), but the majority of mutual funds invest in stocks
and/or bonds.
MUTUAL FUNDS
A Mutual Fund is a trust that pools the savings of a number of investors who share a common
financial goal. The money thus collected is then invested in capital market instruments such as
shares, debentures and other securities. The income earned through these investments and the
capital appreciation realised are shared by its unit holders in proportion to the number of units
owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it
offers an opportunity to invest in a diversified, professionally managed basket of securities at a
relatively low cost. The flow chart below describes broadly the working of a mutual fund:

Mutual funds are considered as one of the best available investments as compare to others they
are very cost efficient and also easy to invest in, thus by pooling money together in a mutual
fund, investors can purchase stocks or bonds with much lower trading costs than if they tried to
do it on their own. But the biggest advantage to mutual funds is diversification, by minimizing
risk & maximizing returns.
DIVERIFICATION
Diversification is nothing but spreading out your money across available or different types of
investments. By choosing to diversify respective investment holdings reduces risk tremendously
up to certain extent. The most basic level of diversification is to buy multiple stocks rather than
just one stock. Mutual funds are set up to buy many stocks. Beyond that, you can diversify even
more by purchasing different kinds of stocks, then adding bonds, then international, and so on. It
could take you weeks to buy all these investments, but if you purchased a few mutual funds you
could be done in a few hours because mutual funds automatically diversify in a predetermined
category of investments (i.e. - growth companies, emerging or mid size companies, low-grade
corporate bonds, etc).
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 of India. The history of mutual funds in India can be
broadly divided into four distinct phases.
First Phase 1964-87
Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. 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
Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank
Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). 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.

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 1996.
The number of mutual fund houses went on increasing, with many foreign mutual funds setting
up funds in India and also the industry has witnessed several mergers and acquisitions. As at the
end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805 crores. The
Unit Trust of India with Rs.44,541 crores of assets under management was way ahead of other
mutual funds.
Fourth Phase since February 2003
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated
into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets
under management of Rs.29,835 crores as at the end of January 2003, representing broadly, the
assets of US 64 scheme, assured return and certain other schemes. The Specified Undertaking of
Unit Trust of India, functioning under an administrator and under the rules framed by
Government of India and does not come under the purview of the Mutual Fund Regulations.
The second is the UTI Mutual Fund, sponsored by SBI, PNB, BOB and LIC. It is registered with
SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile
UTI which had in March 2000 more than Rs.76,000 crores of assets under management and with
the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and
with recent mergers taking place among different private sector funds, the mutual fund industry
has entered its current phase of consolidation and growth.

The graph indicates the growth of assets over the years:

TYPES OF MUTUAL FUND SCHEMES

Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial position, risk
tolerance and return expectations etc. thus mutual funds has Variety of flavors, Being a
collection of many stocks, an investors can go for picking a mutual fund might be easy. There
are over hundreds of mutual funds scheme to choose from. It is easier to think of mutual funds in
categories, mentioned below
Overview of existing schemes existed in mutual fund category: BY STRUCTURE
1. Open - Ended Schemes:
An open-end fund is one that is available for subscription all through the year. These do not have
a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value ("NAV")
related prices. The key feature of open-end schemes is liquidity.
2. Close - Ended Schemes:
These schemes have a pre-specified maturity period. One can invest directly in the scheme at the
time of the initial issue. Depending on the structure of the scheme there are two exit options
available to an investor after the initial offer period closes. Investors can transact (buy or sell) the
units of the scheme on the stock exchanges where they are listed. The market price at the stock
exchanges could vary from the net asset value (NAV) of the scheme on account of demand and
supply situation, expectations of unitholder and other market factors. Alternatively some closeended schemes provide an additional option of selling the units directly to the Mutual Fund
through periodic repurchase at the schemes NAV; however one cannot buy units and can only
sell units during the liquidity window. SEBI Regulations ensure that at least one of the two exit
routes is provided to the investor.
3. Interval Schemes:
Interval Schemes are that scheme, which combines the features of open-ended and close-ended
schemes. The units may be traded on the stock exchange or may be open for sale or redemption
during pre-determined intervals at NAV related prices.

The risk return trade-off indicates that if investor is willing to take higher risk then
correspondingly he can expect higher returns and vice versa if he pertains to lower risk
instruments, which would be satisfied by lower returns. For example, if an investors opt for
bank FD, which provide moderate return with minimal risk. But as he moves ahead to invest in
capital protected funds and the profit-bonds that give out more return which is slightly higher as
compared to the bank deposits but the risk involved also increases in the same proportion.
Thus investors choose mutual funds as their primary means of investing, as Mutual funds
provide professional management, diversification, convenience and liquidity. That doesnt mean
mutual fund investments risk free. This is because the money that is pooled in are not invested
only in debts funds which are less riskier but are also invested in the stock markets which
involves a higher risk but can expect higher returns. Hedge fund involves a very high risk since it
is mostly traded in the derivatives market which is considered very volatile
Overview of existing schemes existed in mutual fund category: BY NATURE
1. Equity fund:
These funds invest a maximum part of their corpus into equities holdings. The structure of the
fund may vary different for different schemes and the fund managers outlook on different
stocks. The Equity Funds are sub-classified depending upon their investment objective, as
follows:

Diversified Equity Funds

Mid-Cap Funds

Sector Specific Funds

Tax Savings Funds (ELSS)

Equity investments are meant for a longer time horizon, thus Equity funds rank high on the riskreturn matrix.
2. Debt funds:
The objective of these Funds is to invest in debt papers. Government authorities, private
companies, banks and financial institutions are some of the major issuers of debt papers. By
investing in debt instruments, these funds ensure low risk and provide stable income to the
investors. Debt funds are further classified as:

Gilt Funds: Invest their corpus in securities issued by Government, popularly known as
Government of India debt papers. These Funds carry zero Default risk but are associated
with Interest Rate risk. These schemes are safer as they invest in papers backed by
Government.
Income Funds: Invest a major portion into various debt instruments such as bonds,
corporate debentures and Government securities.
MIPs: Invests maximum of their total corpus in debt instruments while they take
minimum exposure in equities. It gets benefit of both equity and debt market. These
scheme ranks slightly high on the risk-return matrix when compared with other debt
schemes.
Short Term Plans (STPs): Meant for investment horizon for three to six months. These
funds primarily invest in short term papers like Certificate of Deposits (CDs) and
Commercial Papers (CPs). Some portion of the corpus is also invested in corporate
debentures.
Liquid Funds: Also known as Money Market Schemes, These funds provides easy
liquidity and preservation of capital. These schemes invest in short-term instruments like
Treasury Bills, inter-bank call money market, CPs and CDs. These funds are meant for
short-term cash management of corporate houses and are meant for an investment
horizon of 1day to 3 months. These schemes rank low on risk-return matrix and are
considered to be the safest amongst all categories of mutual funds.

3. Balanced funds:
As the name suggest they, are a mix of both equity and debt funds. They invest in both equities
and fixed income securities, which are in line with pre-defined investment objective of the

scheme. These schemes aim to provide investors with the best of both the worlds. Equity part
provides growth and the debt part provides stability in returns.
Overview of existing schemes existed in mutual fund category: BY INVESTMENT
OBJECTIVES

Growth Schemes: Growth Schemes are also known as equity schemes. The aim of these
schemes is to provide capital appreciation over medium to long term. These schemes
normally invest a major part of their fund in equities and are willing to bear short-term
decline in value for possible future appreciation.
Income Schemes: Income Schemes are also known as debt schemes. The aim of these
schemes is to provide regular and steady income to investors. These schemes generally
invest in fixed income securities such as bonds and corporate debentures. Capital
appreciation in such schemes may be limited.
Balanced Schemes: Balanced Schemes aim to provide both growth and income by
periodically distributing a part of the income and capital gains they earn. These schemes
invest in both shares and fixed income securities, in the proportion indicated in their offer
documents (normally 50:50).
Money Market Schemes: Money Market Schemes aim to provide easy liquidity,
preservation of capital and moderate income. These schemes generally invest in safer,
short-term instruments, such as treasury bills, certificates of deposit, commercial paper
and inter-bank call money.
Other schemes:
Tax Saving Schemes: Tax-saving schemes offer tax rebates to the investors under tax
laws prescribed from time to time. Under Sec.88 of the Income Tax Act, contributions
made to any Equity Linked Savings Scheme (ELSS) are eligible for rebate.
Index Schemes: Index schemes attempt to replicate the performance of a particular index
such as the BSE Sensex or the NSE 50. The portfolio of these schemes will consist of
only those stocks that constitute the index. The percentage of each stock to the total
holding will be identical to the stocks index weightage. And hence, the returns from such
schemes would be more or less equivalent to those of the Index.
Sector Specific Schemes: These are the funds/schemes which invest in the securities of
only those sectors or industries as specified in the offer documents. e.g. Pharmaceuticals,
Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in
these funds are dependent on the performance of the respective sectors/industries. While
these funds may give higher returns, they are more risky compared to diversified funds.
Investors need to keep a watch on the performance of those sectors/industries and must
exit at an appropriate time.

TYPES OF RETURNS
There are three ways, where the total returns provided by mutual funds can be enjoyed by
investors:

Income is earned from dividends on stocks and interest on bonds. A fund pays out nearly
all income it receives over the year to fund owners in the form of a distribution.
If the fund sells securities that have increased in price, the fund has a capital gain. Most
funds also pass on these gains to investors in a distribution.
If fund holdings increase in price but are not sold by the fund manager, the fund's shares
increase in price. You can then sell your mutual fund shares for a profit. Funds will also
usually give you a choice either to receive a check for distributions or to reinvest the
earnings and get more shares.
PROS AND CONS OF MUTUAL FUNDS

For investments in mutual fund, one must keep in mind about the Pros and cons of investments
in mutual fund.
Advantages of Investing Mutual Funds:
1. Professional Management - The basic advantage of funds is that, they are professional
managed, by well qualified professional. Investors purchase funds because they do not have the
time or the expertise to manage their own portfolio. A mutual fund is considered to be relatively
less expensive way to make and monitor their investments.
2. Diversification - Purchasing units in a mutual fund instead of buying individual stocks or
bonds, the investors risk is spread out and minimized up to certain extent. The idea behind
diversification is to invest in a large number of assets so that a loss in any particular investment
is minimized by gains in others.
3. Economies of Scale - Mutual fund buy and sell large amounts of securities at a time, thus help
to reducing transaction costs, and help to bring down the average cost of the unit for their
investors.
4. Liquidity - Just like an individual stock, mutual fund also allows investors to liquidate their
holdings as and when they want.
5. Simplicity - Investments in mutual fund is considered to be easy, compare to other available
instruments in the market, and the minimum investment is small. Most AMC also have automatic
purchase plans whereby as little as Rs. 2000, where SIP start with just Rs.50 per month basis.

Disadvantages of Investing Mutual Funds:

1. Professional Management- Some funds dont perform in neither the market, as their
management is not dynamic enough to explore the available opportunity in the market, thus
many investors debate over whether or not the so-called professionals are any better than mutual
fund or investor himself, for picking up stocks.
2. Costs The biggest source of AMC income is generally from the entry & exit load which they
charge from investors, at the time of purchase. The mutual fund industries are thus charging
extra cost under layers of jargon.
3. Dilution - Because funds have small holdings across different companies, high returns from a
few investments often don't make much difference on the overall return. Dilution is also the
result of a successful fund getting too big. When money pours into funds that have had strong
success, the manager often has trouble finding a good investment for all the new money.
4. Taxes - when making decisions about your money, fund managers don't consider your
personal tax situation. For example, when a fund manager sells a security, a capital-gain tax is
triggered, which affects how profitable the individual is from the sale. It might have been more
advantageous for the individual to defer the capital gains liability.
REGULATORY AUTHORITIES
To protect the interest of the investors, SEBI formulates policies and regulates the mutual funds.
It notified regulations in 1993 (fully revised in 1996) and issues guidelines from time to time.
MF either promoted by public or by private sector entities including one promoted by foreign
entities is governed by these Regulations.
SEBI approved Asset Management Company (AMC) manages the funds by making investments
in various types of securities. Custodian, registered with SEBI, holds the securities of various
schemes of the fund in its custody.
According to SEBI Regulations, two thirds of the directors of Trustee Company or board of
trustees must be independent. The Association of Mutual Funds in India (AMFI) reassures the
investors in units of mutual funds that the mutual funds function within the strict regulatory
framework. Its objective is to increase public awareness of the mutual fund industry.
AMFI also is engaged in upgrading professional standards and in promoting best industry
practices in diverse areas such as valuation, disclosure, transparency etc.

EQUITY FUNDS EXPLAINED

Most mutual funds invest in stocks, and these are called equity funds. While mutual funds most
often invest in the stock market, fund managers don't just buy any old stock they find attractive.
Some funds specialize in investing in large-cap stocks, others in small-cap stocks, and still others
invest in what's left -- mid-cap stocks.
"Cap" has nothing to do with its dictionary meanings. On Wall Street, cap is shorthand for
capitalization, and is one way of measuring the size of a company -- how well it's capitalized.
Large-cap stocks have market caps of billions of dollars, and are the best-known companies in
the U.S. Small-cap stocks are worth several hundred million dollars, and are newer, up-andcoming firms. Mid-caps are somewhere in between.
Mutual funds are often categorized by the market capitalization of the stocks that they hold in
their portfolios. But how big is a large cap stock? Formulas differ, but here is one guideline:

Small-cap stocks < $500 million

Mid-cap stocks $500 million to $5 billion

Large-cap stocks > $5 billion

Equity fund managers usually employ one of three particular styles of stockpicking when they
make investment decisions for their portfolios. Some fund managers use a value approach to
stocks, searching for stocks that are undervalued when compared to other, similar companies.
Often, the share prices of these stocks have been beaten down by the market as investors have
become pessimistic about the potential of these companies.
Another approach to picking is to look primarily at growth, trying to find stocks that are growing
faster than their competitors, or the market as a whole. These funds buy shares in companies that
are growing rapidly -- often well known, established corporations.
Some managers buy both kinds of stocks, building a portfolio of both growth and value stocks.
This is known as the blend approach

FUND HOUSES
A fund house is a company/firm that owns and operates a mutual fund. They own the fund and
decide on the investment strategies to be followed with the money that was collected from the
investor public for the fund.
Various fund houses taken as samples for the comparison of schemes are:
1. ICICI PRUDENTIAL ASSEST MANAGEMENT COMPANY
2. RELIENCE MUTUAL FUND
3. SBI MUTUAL FUND
The sample of ten comparisons of schemes falling under equity category has been selected for
analysis, these comparisons are:
C.1 ICICI PRUDENTIAL FOCUSED BLUECHIP EQUITY FUND vs. RELIENCE EQUITY
FUND vs. SBI BLUECHIP FUND
C.2 ICICI PRUDENTIAL TAX PLAN vs. RELIENCE TAX SAVER (ELSS) FUND vs. SBI
MAGNUM TAXGAIN SCHEME
C.3 ICICI PRUDENTIAL INFRATRUCTURE FUND vs. RELIENCE INFRASTRUCTURE
FUND vs. SBI INFRASTRUCTURE FUND SERIES I
C.4 RELIENCE NRI EQUITY FUND vs. SBI MAGNUM NRI INVESTMENT FUND
C.5 ICICI PRUDENTIAL BANKING & FINANCIAL SERVICE SECTOR ORIENTED FUND
vs. RELIENCE BANKING FUND
C.6 ICICI PRUDENTIAL TECHNOLOGY FUND vs. SBI MSFU- IT FUND
C.7 ICICI PRUDENTIAL FMCG FUND vs. SBI MSFU- FMCG FUND
C.8 RELIENCE INDEX FUND NIFTY PLAN vs. SBI MAGNUM INDEX FUND
C.9 RELIENCE PHARMA FUND vs. SBI MSFU- PHARMA FUND
C.10 RELIENCE ARBITRAGE ADVANTAGE vs. SBI ARBITRAGE OPPORTUNITY FUND
Further in the project, first the introduction of fund houses and then the comparisons of various
schemes (stated above) are explained.

ICICI PRUDENTIAL ASSET MANAGEMENT COMPANY

ICICI Prudential Asset Management Company Ltd. (IPAMC/ the Company) is the joint venture
between ICICI Bank, a well-known and trusted name in financial services in India and Prudential
Plc, one of UKs largest players in the financial services sectors. IPAMC was incorporated in the
year 1993. The Company in a span of over 18 years since inception and just over 13 years of the
Joint Venture, has forged a position of preeminence in the Indian Mutual Fund industry as the
third largest asset management company in the country, contributing significantly to the growth
of the Indian mutual fund industry.The Company manages significant Mutual Fund Asset Under
Management (AUM), in addition to Portfolio Management Services and International Advisory
Mandates for clients across international markets in asset classes like Debt, Equity and Real
Estate with primary focus on risk adjusted returns.
IPAMC has witnessed substantial growth in scale. From merely 2 locations and 6 employees
during inception to the current strength of over 700 employees with reach across around 150
locations, the growth momentum of the Company has been exponential. The organization today
is an ideal mix of investment expertise, resource bandwidth & process orientation. IPAMCs
Endeavour is to bridge the gap between savings & investments to help create long term wealth
and value for investors through innovation, consistency and sustained risk adjusted performance.
ICICI Bank

ICICI Bank is India's second-largest bank with total assets of Rs. 4,062.34 billion (US$ 91
billion) at March 31, 2011 and profit after tax Rs. 51.51 billion (US$ 1,155 million) for the year
ended March 31, 2011. The Bank has a network of 2,538 branches and about 6,810 ATMs in
India,
and
has
a
presence
in
19
countries,
including
India.
ICICI Bank offers a wide range of banking products and financial services to corporate and retail
customers through a variety of delivery channels and through its specialised subsidiaries in the
areas of investment banking, life and non-life insurance, venture capital and asset management.

The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in
United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International
Finance Center and representative offices in United Arab Emirates, China, South Africa,
Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in
Belgium and Germany.
ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National
Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the
New York Stock Exchange (NYSE).
Prudential Plc (formerly known as Prudential Corporation plc)

Prudential plc is an international financial services group with significant operations in Asia, the
US and the UK. They serve approximately, 25 million customers and have 290 billion in assets
under management. They are among the leading capitalized insurers in the world with an
Insurance Groups Directive (IGD) capital surplus estimated at 3.4 billion (as at 31 December
2009).
The Group is structured around four main business units:
Prudential Corporation Asia (PCA)
PCA is a leading life insurer in Asia with presence in 12 markets and a top three position in
seven key locations: Hong Kong, India, Indonesia, Malaysia, Philippines, Singapore, and
Vietnam. PCA provides a comprehensive range of savings, protection and investment products
that are specifically designed to meet the needs of customers in each of its local markets. PCAs
asset management business in Asia has retail operations in 10 markets and it independently
manages assets on behalf of a wide range of retail and institutional investors across the region.
Jackson National Life Insurance Company
Jackson is one of the largest life insurance companies in the US, providing retirement savings
and income solutions to more than 2.8 million customers. It is also one of the top five providers
of variable and fixed index annuities in the US. Founded nearly 50 years ago, Jackson has a long
and successful record of providing effective retirement solutions for their clients.
Prudential UK & Europe (PUE)
PUE is a leading life and pensions provider to approximately 7 million customers in the UK.It
has a number of major competitive advantages including significant longevity experience, multi

asset investment capabilities, a strong investment track record, a highly respected brand and
financial strength. PUE continues to focus on its core strengths including its annuities, pensions
and investment products where it can maximize the advantage it has in offering with-profits and
other multi-asset investment funds.
M&G
M&G is Prudentials UK and European fund management business with total assets under
management of 174 billion (as at December 31, 2009).M&G has been investing money for
individual and institutional clients for nearly 80 years. Today it is among the largest investors in
the UK stock market, as well as being a powerhouse in fixed-income investments. Prudential plc
of the United Kingdom is not affiliated in any manner with Prudential Financial, Inc., a company
whose principal place of business is in the United States of America.
MANAGEMENT
Mr.Nimesh Shah- Managing Director & Chief Executive Officer: Nimesh Shah joined ICICI
Prudential AMC as its Managing Director in July 2007.Nimesh has completed his Chartered
Accountancy. Prior to joining ICICI Prudential AMC, Nimesh was Senior General Manager at
ICICI Bank and has over 18 years experience in banking and financial services. At ICICI Group,
he has handled many responsibilities including project finance, corporate banking and
international banking. He was associated with one of the first batches of senior managers
selected to lead the foray of ICICI Bank into the international arena. He led ICICI Banks foray
into the Middle-Eastern region and Africa.
Mr. B Ramakrishna - Executive Vice President: Ramakrishna joined ICICI Prudential AMC in
September 2004.Ramakrishna is a Chartered Accountant and has also done his Cost Accountancy.
He has around 23 years of rich experience across industries like FMCG and banking & financial
services. At ICICI Prudential AMC , Ramakrishna is the custodian of the finance , compliance
and technology functions . He plays an integral role in driving the key profitability agenda
through financial & corporate planning, budgetary control and corporate finance.
Mr. Raghav Iyengar - Head - Retail & Institutional Business: Raghav joined ICICI Prudential
AMC in December 2006. Raghav is a Chartered Accountant and also has a degree in Cost
Accountancy. He has an overall work experience of around 16 years across the Banking &
Financial Service Industry. He was also associated with ICICI Prudential AMC from 1998 to
2000.At ICICI Prudential AMC, Raghav is responsible for driving the business objectives
through Retail sales and distribution, channel sales and institutional / corporate investors. His
role is of a key driver in strengthening distribution relationships and facilitating asset growth. He
is also responsible for identifying potential areas of expansion and facilitating business growth.
Raghav loves traveling and visiting new places. He loves reading books and enjoys playing
tennis with his son.

Mr. Kalyan Prasath - Head - Information Technology: Kalyan joined ICICI Prudential AMC in June
2001. Kalyan holds a Diploma in Business Management from ICFAI and Post Graduate Diploma in
Systems Management from NIIT. He has 23 years of experience across industries like IT, manufacturing
and banking & financial services. At ICICI Prudential AMC, his responsibilities include overseeing the
overall technology function i.e. business application, information security and IT infrastructure & projects
thereby contributing to business excellence.
Mr. Hemant Agarwal - Head Operations: Hemant joined ICICI Prudential AMC in February
2007.Hemant has done his Chartered Accountancy. He has an overall work experience of around 14 years
across industries like information technology and banking & financial services.In his role at ICICI
Prudential AMC his responsibilities are building the operation and customer service framework. The
objective of this function is to evolve a service model that is scalable and ensures process excellence.
Mr. Ashish Kakkar - Head - Human Resources & Administration: Ashish joined ICICI Prudential
AMC in June 2003. Ashish is a post graduate in human resources with Masters in Labor Law. He has
over 12 years of experience in human resources across industries like pharmaceuticals, FMCG and the
financial services. Ashish started his career with the Indian Navy, after graduating from the Naval
Academy with top honors. At ICICI Prudential AMC, he heads the human resources and administration
function. The key aspects of his function are to build peoples capabilities to meet business objectives,
and to leverage technology to ensure administrative processes are efficient.
Mr. Aashish Somaiyaa - Head Retail Business: Aashish began his career at ICICI Prudential AMC in
2000 and was a part of the organization till April 2007. After a brief stint away, he rejoined ICICI
Prudential AMC in October 2008. A Chemical Engineer, he holds a Masters in Management Studies with
specialization in Finance from NMIMS Mumbai. He has overall work experience of over 10 years across
the Banking & Financial Services Industry. He is also a certified trainer.In his role at ICICI Prudential
AMC, Aashish is responsible for driving the business objectives in retail business through a mix of
distribution channels that are deployed to reach out to investors. The retail sales and distribution team is
an integrated unit of business delivery (sales and service), primarily addressing distributors and through
them individual investors needs. Additionally, Aashish is also responsible for the Product Development
and Communication function which studies investors requirements and provides the market with right
kind of investment products and service features.
Mr. Rahul Rai - Head Real Estate Business ICICI Prudential Asset Management Company
Limited: Rahul joined ICICI Prudential AMC in Nov 2010. At ICICI Prudential AMC, Rahul is
responsible for anchoring the Real Estate Business and driving team synergies. Rahul has an overall work
experience of around 20 years. His expertise and core competency has been in the in depth understanding
of the real estate segment and evaluating and investing in real estate projects. He has also managed one of
the largest and first FDI transactions that happened in the Indian real estate space in 2004. Rahul, is a
Chartered Accountant, and has also completed the Cost Accountancy and Intermediate level Company
Secretary Course. Prior to ICICI Prudential AMC, he has been associated with companies like Arthur
Anderson Corporate Finance, Ernst and Young Transaction Advisory Services, RSM Advisors Private
Limited and till recently was associated with Sun Apollo Real Estate Advisors.

FUND MANAGEMENT
Mr. S. Naren - Chief Investment Officer Equity: Naren joined ICICI Prudential AMC in
October 2004. At ICICI Prudential AMC, Naren oversees the equity investments across the
Mutual Fund,Portfolio Management Services (PMS) and International Advisory Business . He is
instrumental in overall equity investment strategy development. Naren has an overall outstanding
and rich experience of over 20 years in almost all spectrum of the financial services industry
ranging from investment banking, Fund Management, Equity Research, and stock broking
operations. His core competency lies in being involved in the entire gamut of equity market
space with extensive knowledge of Indian equities and the economy .After obtaining a B. Tech
degree from IIT Chennai, Naren finished MBA in finance from IIM Kolkota and worked with
various financial services companies like Refco Sify Securities India Pvt. Ltd., HDFC Securities
Ltd. and Yoha Securities in various positions prior to joining ICICI Prudential AMC.
Mr. Chaitanya Pande - Head Fixed Income: Chaitanya joined ICICI Prudential AMC in
September 2002. Chaitanya currently manages thirteen funds viz. ICICI Prudential Flexible
Income Plan, ICICI Prudential Equity & Derivatives Fund, ICICI Prudential Blended Plan A,
ICICI Prudential Blended Plan B, ICICI Prudential Fixed Maturity Plans, ICICI Prudential
Interval Fund, ICICI Prudential Liquid Plan, ICICI Prudential Floating Rate Plan, ICICI
Prudential Long Term Floating Rate Plan, ICICI Prudential Short Term Plan, ICICI Prudential
Sweep Plan, ICICI Prudential Real Estate Securities Fund and ICICI Prudential S.M.A.R.T.
(Structure Methodology Aiming at Returns over Tenure) Fund. Chaitanya has an overall work
experience of around over 14 years. His core competency lies in credit analysis and efficient
portfolio management. His efficiency in fund management also won him the title of Indias Most
Astute Bond Investor by Asset Magazine for the year 2007. Chaitanya holds a MBA from IMI
Delhi. Prior to joining ICICI Prudential AMC he was with Jardine Fleming AMC Pvt Ltd.
BOARD OF DIRECTORS: ASSET MANAGEMENT COMPANY
Mrs. Chanda Kochhar, MD & CEO ICICI Bank: Ms. Chanda Kochhar is the Managing
Director and Chief Executive Officer of ICICIBank Limited. She began her career with ICICI as
a Management Trainee in 1984 and has thereon successfully risen through the ranks by handling
multidimensional assignments and heading all the major functions in the Bank at various points
in time. In 1993 when ICICI decided to enter commercial banking, she was deputed to ICICI
Bank as a part of the core team to set up the bank. When ICICI set up the Infrastructure Industry
Group in 1996 to create dedicated industry expertise in the areas of Power, Telecom and
Transportation sector, she was handpicked and made incharge of the Infrastructure Industry
Group. Further in 1998, when ICICI created the Major Client Group to handle the relationships
with the top 200 clients of ICICI, she was promoted as General Manager and was made the head
of the Major Clients Group. In the year 1999 she simultaneously started handling the strategy
and
E-commerce
divisions
of
ICICI.
In July 2000, she was chosen to head the Retail finance division of ICICI and has been

instrumental in scaling up the business. In April 2001, she was promoted as an Executive
Director, heading the retail business in the Bank. Having joined it during its nascent stage, her
strategic thinking and skills to convert challenges into opportunities ensured that within a short
span of around 5 years ICICI Bank emerged as the largest retail financer in India. In the process
of transforming a small bank into the largest private sector bank in the country, within a decade
of its inception, the various steps taken by her also shaped the retail finance industry in India. In
April 2006, she was appointed as the Deputy Managing Director with responsibility for both
Corporate and Retail banking business of ICICI Bank and from October 2006 to October 2007,
she handled the International and Corporate businesses of ICICI. Once again under her
leadership, International banking was the fastest growing businesses within the Bank aiming to
cater to the cross-border needs of clients.
In October 2007, she was appointed as the Joint Managing Director & CFO. She was heading the
Corporate Centre, was the Chief Financial Officer (CFO) and was also the official spokesperson
for ICICI Bank. In addition to finance, planning and communications; her responsibilities
included the global treasury, principal investments & trading, risk management and legal
functions. She was also responsible for day-to-day guidance and administrative matters relating
to the compliance and internal audit functions.
Awards
Under the leadership of Ms. Kochhar ICICI Bank had won The Asian Banker - Best Retail
Bank in Indiaaward for five consecutive years from the year 2001 to 2005. As recognition of
her contribution to establish ICICI Bank as a leading player in the banking industry Ms. Kochhar
has also been:

Ranked 25th in the Fortunes List of Most Powerful Women in Business, 2008

Featured in the list of 25 most powerful women leaders in Business Today, 2008

Selected as Rising Star Award for Global Awards 2006 by Retail Banker International

Awarded Business Woman of the Year 2005 by The Economic Times of India

Selected as Retail Banker of the Year 2004 (Asia-Pacific region) by The Asian Banker
from amongst prominent retail bankers in the Asia Pacific region

Education & Certifications

Born in Jodhpur, Rajasthan, she joined Jaihind College in Mumbai for a Bachelors Degree in
Arts and after graduating in 1982, completed her MBA and Cost Accountancy. She did her
Masters in Management Studies (Finance) from the Jamnalal Bajaj Institute of Management
Studies, Mumbai and topped her batch and received the Wockhardt Gold Medal for Excellence

in Management Studies. In Cost Accountancy, she received the J. N. Bose Gold Medal for
highest marks in that year.
Mr. Barry Stowe: Barry Stowe is Chief Executive of Prudential Corporation Asia. He is
responsible for an extensive network of over 50 life insurance and fund management operations
spanning 13 diverse markets. With 450,000 dedicated staff and agents, Prudentials Asia
business offers a wide range of savings, protection and investment products tailored to meet the
needs of local customers, in addition to consumer finance sector in Vietnam. Prudential is Asias
leading Europe-based life insurer, with over 34.3 billion in assets under management (as of 30
June 2008), and is also a major player in Asias fund management sector.
Prior to joining Prudential in October 2006, Barry was President of Accident & Health
Worldwide for AIG Life Companies, overseeing more than 100 operations across six continents.
Under his leadership, AIG became the global market leader in Accident & Health insurance,
leveraging rapidly-evolving dynamics between consumers, governments and the medical
industry to maintain a vigorous CAGR of 24%. Barry was also pivotal in building the Accident
& Health unit into one of AIGs most profitable businesses, accounting for over 30% of AIG
Life Companies total earnings by 2005.
Barry has considerable experience in Asia, having spent three years as the Regional Head for
AIG Accident & Health in Southeast Asia before his appointment to the Hong Kong-based role
of President, Accident & Health Worldwide.
In addition to his eleven years with AIG, Barrys career in the insurance industry includes his
tenure as President & CEO of Nisus, a subsidiary of the Pan American Life Insurance Company,
and several leadership positions at Willis Corroon, a global risk management and insurance
brokerage based in the U.S.
Mr. Suresh Kumar: Academic Career: Mr. Suresh Kumar graduated from the Sydenham
College of Commerce & Economics of the University of Bombay with a Bachelor of Commerce
(Honours) degree in 1971. He completed a post-graduate investment management programme
conducted jointly by the Stanford University and the London School of Business. He also
completed an Advanced Management Programme at the Columbia Business School.
Achievements/Eminent Positions held:

Senior treasury and general management positions in a Government of Dubai project.

Management positions in the banking sector in India, in the U. K. and in the (West Coast)
U.S.

Member of the senior Management of Emirates Bank Group since 1989.

Member on the Board of a number of offshore private equity firms.

More recently, he has assumed the role of a Chief Mentor and Group Director in Emirates
NBD; with responsibilities for a number of organic and inorganic initiatives.

Recipient of the Rotary International Scholarship (1977) tenable in California (U.S.A.)

Recipient of Lord Aldington Banking Fellowship (1978)

Fellow of the Indian Institute of Bankers

Member of the regional Chief Executive Forum of the Institute of International Finance
(IIF), Washington D.C.

Directorships in other Companies:

Independent Director on the Board of ICICI International Ltd

Chairman of the Board of Fedbank Financial Services Ltd.

Non-executive director on the Board of Federal Bank Ltd.

Chief Executive Officer of Emirates NBD Capital Ltd (DIFC) and Emirates Financial
Services (EFS) PSC.

Mr. Vijay Thacker: Mr. Thacker is the Managing Partner of V. P. Thacker & Co. Mr. Vijay
Thacker is a Chartered Accountant and Cost Accountant and has been in professional practice for
over 22 years. He is a Fellow of the Institute of Chartered Accountants of India.
Mr. Thackers professional skills and experience cover diverse facets including Audit and
assurance, Business consulting, Corporate Law and taxation, Hotel and tourism consulting,
Franchise consulting and Consulting for Family and Owner managed businesses. He is also a
speaker and paper writer at international and domestic conferences.
Mr. Dileep C. Choksi: Mr. Dileep C. Choksi a Chartered Accountant by profession has over 35
years of experience. His areas of specialization include tax planning and structuring for domestic
and international clients, including expatriates, finalizing collaborations and joint ventures,
corporate restructuring and analyzing tax impact of various instruments. He has advised some of
Indias largest business houses on mergers and acquisitions and multinational companies on
cross border structuring and acquisition.
Mr. Choksi has contributed various papers on mergers and acquisitions, valuation of business
enterprises, company law, corporate governance and taxation. He has assisted in the preparation
of the prominent book Kanga and Palkhiwala - The Law and Practice of income Tax Eight
Edition by late Mr. N. A. Palkhiwala and Mr. B.A. Palkhivala.

He has been an ex-visiting faculty member of the Jamnalal Bajaj Institute of Management
Studies, Bankers Training College, and Reserve Bank of India. He was earlier on the Taxation
Committee of the Indian Merchant Chambers.
Mr. Choksi is on the Board of several leading companies including ICICI Lombard General
Insurance Company Limited, ICICI Prudential Asset Management Company Limited, NSE.IT
Limited, and State Bank of India. He was also on the Advisory Board of foreign banks as well as
Ex-Chairman of Banque Nationale De Paris, Mumbai.
Mr. N.S. Kannan: Mr. N.S. Kannan is the Executive Director and Chief Financial Officer of
ICICI Bank. In addition to Finance, Taxation and Communications, his responsibilities include
Compliance, Internal Audit, Corporate Legal and Global Treasury operations. Prior to the current
assignment, Mr. Kannan was the Executive Director of ICICI Prudential Life Insurance
Company. He looked after the Corporate Centre including the Finance and accounts functions,
Investor/analyst relations, Investment Management, Corporate Strategy, Corporate
Communications, Human Resources and Business Intelligence. Prior to shifting to ICICI
Prudential, Mr. Kannan was the Chief Financial Officer and Treasurer of ICICI Bank.
Mr. Kannan has been with the ICICI group for over 18 years. He joined the ICICI group in 1991
as a project officer. During his tenure at ICICI group, he has handled project finance operations,
infrastructure financing, structured finance and treasury operations. Mr. Kannan is a postgraduate
in management from the Indian Institute of Management, Bangalore with a gold medal for best
all-round performance. He is also a Chartered Financial Analyst from the Institute of Chartered
Financial Analysts of India and an Honours graduate in Mechanical Engineering.
Mr. C. R. Muralidharan: Mr. C. R. Muralidharan was a Whole-Time Member of Insurance
Regulatory and Development Authority, Hyderabad (IRDA) and was looking after the
compliance by the insurers of the regulations on investments, analysis of financial statements of
insurance companies, on and off-site supervision of insurance companies as well as other
regulatory issues including the registration of new insurance companies.
Prior to joining IRDA, he worked in RBI for more than three decades in various capacities. He
was heading the Department of Banking Operations and Development (DBOD) of RBI, which is
responsible for laying down a regulatory framework on a wide range of operations for Indian
commercial banks to promote a sound and competitive banking system consistent with the
emerging international best practices. He assisted IMF in two overseas assignments and was
associated with several High Level Working Groups on Banking Regulation. Besides, he was
also actively involved in the role of promotion of rural credit as well as in the development of
HR for the central bank.
Mr. Nimesh Shah: Profile explained earlier in the report.

FUTURE OUTLOOK AND OPERATIONS OF THE SCHEMES (for the year

ended march 31, 2012)
Investment Folios: The total number of live folios as at March 31, 2012 were 28.38 lakh.
Market Review FY12: Stock markets across the globe fell in 2011, and the domestic indices
were no exception. As investors appeared to be putting behind the memories of the 2008
financial crisis with an upturn, 2011 showed what volatility can do to ones portfolio. A series of
global and domestic events together rocked the investor confidence and markets over FY12.The
year was ruled by a number of global factors ranging from the Euro-zone debt crisis and major
sovereign downgrades to signs of economic slowdown in the U.S. and China. A worsening Euro
crisis led to a flight to safety as investors bought gold. Brent crude prices remained high on
account of supply concerns owing to geo-political tensions in Middle East oil producing
countries which added to the increased volatility in equity markets. As the year progressed,
strong household consumption and relatively healthier US banks led to a smart recovery in US
equities. During the financial year, global turmoil and disappointing domestic economic data did
not bode well for the Indian markets. Weak industrial output, slowing economic growth, and
higher inflation were the key concerns for the year. The ongoing global economic turmoil
coupled with rising interest rates back home impacted domestic economic growth. The GDP data
released indicated a continuous slowdown in the overall economic growth for the year. Exports
slowed down as demand weakened from European and US markets, owing to the uncertainty
prevailing in both the markets. As imports grew faster, the trade deficit widened. The rupee
declined against the US dollar owing to weak local equities, weakness in the euro and dollar
demand from banks and importers. The headline inflation surged over 9% raising concerns, even
as the central banks efforts to curb rising prices did not achieve the expected efficacy. The
Reserve Bank of India (RBI) hiked rates seven times in calendar 2011, with key rates rising by
225 bps in total. In January and March 2012 policy announcements, RBI cut Cash Reserve Ratio
(CRR) by 75 and 50 bps respectively, to ease liquidity which had become structurally very high
and took a pause with respect to repo rates indicating a change in its stance. Besides, the 2G
spectrum-sale issue, widespread perception of lack of progress in economic reforms, corporate
governance concerns, and disappointing corporate earnings did not help equities either.
During the year, rising inflation, continual hikes in interests rates (in calendar 2011), liquidity
crunch and huge government borrowing had a negative impact on government bond prices. The
economic slowdown, however, raised hopes of a pause in rate-hikes by the RBI towards the end
of the financial year, which in turn pushed up bond prices. The surge in yields was steeper at the
shorter-end of the yield curve, primarily on account of the liquidity crunch that the markets
witnessed from time to time during the year, thereby putting pressure on shorter duration bonds.

Operations of the Schemes

1. Average Assets under Management (AAUM)
The AAUM of the Mutual Fund for the quarter ended March 31, 2012 stood at Rs. 68,816.49
crore, while for the quarter ended March 31, 2011; the AAUM of the Mutual Fund was Rs.
73,551.95 crore. As of March 31, 2012, the Fund comprised 43 open-ended schemes, 2 exchange
traded funds, 17 interval fund plans, 2 fund of funds schemes (of which one has five sub-plans)
and 93 plans under close ended schemes. During the year under review the Fund launched one
fund of funds scheme; one open ended debt scheme, and 71 plans under close ended debt
schemes.
2. Operations and Consumer Service
With a view to rendering timely and efficient customer service, the Investment Manager of the
Fund, viz., ICICI Prudential Asset Management Company Ltd. (the AMC) has been effectively
leveraging on its 126 branches, including 36 functioning as official points of acceptance of
transactions, effectively servicing the large client base. Additionally a dedicated contact center
has been effective in providing investor support and redressing their grievances. The AMCs
focus has been on technological innovation for facilitating investors convenience.
Scheme-wise commentary*
ICICI Prudential Focused Bluechip Equity Fund
ICICI Prudential Focused Bluechip Equity Fund is an open-ended equity scheme that seeks to
generate long-term capital appreciation to unitholders from a portfolio that is invested
predominantly in equity and equity-related 5 securities of about 25-30 large-cap companies and
the balance in debt securities, money market instruments, and cash.
The scheme posted a return of -3.66% in FY12, better than the -9.23% posted by the benchmark
S&P CNX Nifty Index. The AAUM of the scheme during the last quarter of FY12 was Rs.
3,805.27 crore.
ICICI Prudential Tax Plan
ICICI Prudential Tax Plan is an open-ended Equity Linked Savings Scheme (ELSS). The scheme
posted a return of -3.61% in FY12, better than the -8.75% posted by the benchmark S&P CNX
500. The AAUM of the scheme during the last quarter of FY12 was Rs. 1,278.42 crore.
ICICI Prudential Infrastructure Fund
ICICI Prudential Infrastructure Fund is a thematic fund encompassing infrastructure. It is an
open-ended equity scheme that seeks to generate capital appreciation and income distribution to
unit holders by investing predominantly in equity or equity-related securities of the companies

belonging to the infrastructure development and balance in debt securities and money market
instruments. The scheme posted a return of -15.39% in FY12, better than the -18.45% posted by
the benchmark CNX Infrastructure Index. The AAUM of the scheme during the last quarter of
FY12 was Rs. 2,153.67 crore.
ICICI Prudential Banking & Financial Services Fund
ICICI Prudential Banking & Financial Services Fund is an open-ended sectoral scheme that
seeks to generate long-term capital appreciation to unit holders from a portfolio that is invested
predominantly in equity and equity related securities of companies engaged in banking and
financial services. The scheme posted a return of -10.54% in FY12, better than the -11.64%
posted by the benchmark BSE Bankex. The AAUM of the scheme during the last quarter of
FY12 was Rs. 140.76 crore.
ICICI Prudential Technology Fund
ICICI Prudential Technology Fund is an open-ended Technology sector oriented fund. The
scheme posted a return of -2.52% in FY12, better than the -7.12% posted by the benchmark BSE
IT Index. The AAUM of the scheme during the last quarter of FY12 was Rs. 104.56 crore.
ICICI Prudential FMCG Fund
ICICI Prudential FMCG Fund is an open-ended FMCG sector oriented fund. The scheme posted
a return of 30.98% in FY12, better than the 24.35% posted by the benchmark S&P CNX FMCG
Index. The AAUM of the scheme during the last quarter of FY12 was Rs. 130.06 crore.
*only project sample schemes are discussed here

RELIANCE MUTUAL FUND

Reliance Mutual Fund ('RMF'/ 'Mutual Fund') is one of Indias leading Mutual Funds, with
Average Assets Under Management (AAUM) of Rs. 80,694 Crores and an investor count of over
63.17 and 69.37 Lakh folios. (AAUM and investor count as of Apr - June '12)
Reliance Mutual Fund, a part of the Reliance Group, is one of the fastest growing mutual funds
in India. RMF offers investors a well
well-rounded
rounded portfolio of products to meet varying investor
requirements and has presence in 179 cities across the country. Reliance Mutual Fund constantly
endeavors to launch innovative products and customer service initiatives to increase value to
investors. Reliance Capital Asset Management Limited (RCAM) is the asset manager of
Reliance Mutual Fund. RCAM a subsidiary of Reliance Capital Limited, which holds 92.93% of
the paid-up
up capital of RCAM, the balance paid up capital being held by minor
minority
ity shareholders.
Reliance Capital Ltd. is one of Indias leading and fastest growing private sector financial
fina
services companies, and ranks among the top 3 private sector financial services and banking
companies, in terms of net worth. Reliance Capital Ltd. has interests in asset management, life
and general insurance, private equity and proprietary investme
investments,
nts, stock broking and other
financial services.
Sponsor

: Reliance Capital Limited

Trustee

: Reliance Capital Trustee Co. Limited

Investment Manager / : Reliance Capital Asset Management Limited

AMC
Statutory Details

: The Sponsor, the Trustee and the Investment Manager are

incorporated under the Companies Act 1956.

VISION AND MISSION STATEMENTS

VISION STATEMENT
To be a globally respected wealth creator with an emphasis on customer care and a culture of
good corporate governance.
MISSION STATEMENT
To create and nurture a world-class, high performance environment aimed at delighting our
customers.
CORPORATE GOVERNANCE
Corporate Governance Policy:
Reliance Capital Asset Management Limited has a vision of being a leading player in the mutual
fund business and has achieved significant success and visibility in the market.
However, an imperative part of growth and visibility is adherence to good conduct in the
marketplace. At Reliance Capital Asset Management Limited, the implementation and
observance of ethical processes and policies has helped us in standing up to the scrutiny of our
domestic and international investors.
Management:
The management at Reliance Capital Asset Management Limited is committed to good corporate
governance, which includes transparency and timely dissemination of information to its investors
and unit holders. The Board of Directors of RCAM is a professional body constituting inter-alia
of, well-experienced and knowledgeable independent members. Regular audit committee
meetings are conducted to review the operations and performance of the company.
Employees:
Reliance Capital Asset Management Limited has at present, a code of conduct for all its officers.
It has a clearly defined prohibition on insider trading policy and regulations. The management
believes in the principles of propriety and utmost care is taken while handling public money,
making proper and adequate disclosures. All personnel at RCAM are made aware of their rights,
obligations and duties as part of the Dealing Policy laid down in terms of SEBI guidelines. They
are taken through a well-designed HR program, conducted to impart work ethics, the Code of
Conduct, information security, Internet and e-mail usage and a host of other issues.
One of the core objectives of RCAM is to identify issues considered sensitive by global
corporate standards, and implement policies/guidelines in conformity with the best practices as
an ongoing process. RCAM gives top priority to compliance in true letter and spirit, fully
understanding its fiduciary responsibilities.

MANAGEMENT TEAM
Sundeep Sikka: is CEO of RCAM. He has been instrumental in expanding RCAM's footprints
in both domestic & international territories. Sundeep has been with RCAM since November
2003 and has more than 13 years of leadership experience with NBFCs and Banks. Sundeep
brings a proven track record of success and a broad understanding of the company's business.
Prior to RCAM, Sundeep has held a number of other senior management positions and his last
stint was with ICICI Bank.
Himanshu Vyapak: Is Deputy CEO with Reliance Capital Asset Management (RCAM) from
Oct 2003 onwards and brings in over 14 years of rich experience in sales & distribution of
financial services. He has been instrumental in expanding RCAMs footprints in both domestic
& international territories. Apart from Reliance Mutual Fund, He was also involved with key
businesses across Reliance Capital group like Credit Cards & Unsecured Loans. Prior to
Reliance Capital he was with ICICI bank and Escorts Finance across liability and asset verticals.
Himanshu is a Fellow of Insurance from Indian Institute of Insurance, a Certified Financial
Planner, a gold medalist in MBA and a Graduate in Economics (Hons) from Delhi
University. Under his leadership, RCAM has earned accolades from Customers, Partners and
Independent professional research entities representing domestic and international geographies.
Some of the recent recognition include:

Best Sales Team - Stevie Award 2008

National Sales Team of the year - Stevie Award 2009

Best National Sales Head of the Year - Wealth Forum Award 2010

Best Distributor Training Team from Wealth Forum Platinum Circle 2010

Top 3 in Customer Service from Wealth Forum Platinum Circle 2010

Sunil B. Singhania: is Head of Equity Investments at Reliance Mutual Fund. Sunil graduated in
commerce from the Bombay University and completed his Chartered Accountancy from the
ICAI, Delhi with an all India rank. He has also earned the right to use the Chartered Financial
Analyst
designation,
conferred
by
CFA
Institute,
USA.
Sunil has a total experience of over 20 years. He has additionally completed the Certification
course for Derivatives conducted by the Bombay Stock Exchange securing an incredible 96%
marks. Before his association with Reliance Mutual Fund, Sunil gained considerable experience
on
the
sell
side
in
Indian
equity
markets.
He was the President of Motisons Securities Private Limited, a broking firm that he was
instrumental in setting up. Later he was a Director- Research and Institutional Sales at Advani
Share Brokers Private Limited, a full service broking outfit specializing in Indian equity and
catering to local and global fund houses. Sunil was the Promoter of The Association of NSE

Members of India; a body of stock brokers. He also sits on the Standards & Practice Council of
the CFA Institute, USA, the first and only member so far based in India to do so. Sunil is
presently the Founder President of the Indian Association of Investment Professionals, the CFA
India society. Having traveled extensively across the world, Sunil has attended many global
investment conferences and seminars.
Amitabh Mohanty: Head Fixed Income has been with Reliance Capital Asset Management
Ltd., in his current assignment, for over Six years. He is a Fixed Income Portfolio Manager with
over 16 years of experience. Prior to his current assignment, he had a six year stint with Alliance
Capital Asset Management Ltd. as Vice President, in charge of fixed income assets. He started
his career in SBI Funds Management Ltd. where he was Deputy Manager responsible for
managing fixed income schemes. He is a management graduate from Indian Institute of
Management, Ahmedabad from the 1996 batch and holds an electrical engineering degree from
the IIT, Roorkee.

BOARD OF DIRECTORS
Kanu Doshi: Mr. Kanu H Doshi, 72 years, a B.Com, B A, FCA (Chartered Accountant), is a
fellow member of Institute of Chartered Accountants of India. He is also the Dean Finance, at
Welingkar Institute of Management, Mumbai, where he teaches Corporate Tax Planning and
Financial Management for Masters Degree of Mumbai University in Management. He regularly
contributes articles to leading journals and periodicals, including leading websites like
moneycontrol.com. He is co-author of Tax Holidays, Financial Accounting, and Treatise on
Special Economic Zones. Mr. Doshi is a Director on the Boards of leading companies like
Reliance Capital Asset Management Limited, Motilal Oswal AMC Ltd, Edelweiss Capital Asset
Management Limited.
S.C. Tripathi: Mr. S C Tripathi 63 years, is a M.Sc (Physics Spl. Electronics), LL B,
Postgraduate Diploma in Development Studies (Cantab), AIMA Diploma in Management. He
has varied experience at State, Central Govt. & International level in Public Finances, Industrial
& Communal Finance & Banking. Few of the vital positions held by him, includes:

Managing Director, Industrial & Investment Corporation of U.P. (PICUP)

Minister (Economy & Commerce), Embassy of India, Tokyo

Secretary, Heavy Industries, & Department of Taxation & Institutional Finance,

Government of UP

Commissioner, Agra Division

Principal Secretary to various departments in Government of UP like Industrial

Development, Governor and Finance.

Adviser (Industry & Finance), Government of UP

Additional Secretary, Ministry of Mines, Govt. of India.

Chairman and Managing Director of Bharat Aluminum Co. (BALCO) and National
Aluminum Co. (NALCO)

Secretary Education, Ministry of Human Resource Development, Government of India

Secretary, Ministry of Petroleum and Natural Gas, Government of India.

He is a Fellow Member of Institute of Electronics & Telecom Engineers, India and Energy
Institute, U.K. He is also a Life Member of Indian Institute of Public Administration and
Professional Member of All India Management Association and Member of Computer Society of
India.
Presently, he is Chairman of National Institute of Technology, Calicut and Chairman of Energy
Institute, India and hold directorships in several limited companies.
Manu Chadha: Mr. Manu Chadha 54 years, a B.Com, LL B, FCA (Chartered Accountant) is a
practicing Chartered Accountant and a Senior Partner in M/s T R Chadha & Co., Chartered
Accountants. He has vast experience of more than 30 years in Auditing, Financial and
Management Consultancy with a specialization in corporate advisory services, project financing /
governance, Corporate Laws and Management Consultancy having expertise in the areas of
Consultancy to foreign companies and Joint Ventures including work relating to FEMA matters,
RBI and FIPB. He had also served as Vice Chairman of Northern India Regional Council of
Institute
of
Chartered
Accountants
of
India
for
two
years.
He has served on the Boards of Punjab National Bank, National Insurance Co. Ltd., Dena Bank,
SBI Mutual Fund, Canfin Homes Ltd., PNB Housing Finance Ltd., etc. Earlier he was on the
Censor Board, Mumbai, appointed by the Information and Broadcasting Ministry and on the
Direct Tax Advisory Committee, appointed by the Ministry of Finance, Government of India.
He is currently on the board of GIC Housing Finance Ltd., SBI Pension Funds Pvt. Ltd. and
other companies. He has recently been nominated to Investor Education and Protection Fund by
the Ministry of Corporate Affairs, Government of India.
Soumen Ghosh: Mr. Soumen Ghosh, 50 years, a B.Sc (Hons) Mechanical Engineering from
University of London. ACA Institute of Chartered Accountants England & Wales, is a Group
Chief Executive Officer of Reliance Capital Ltd., the financial services company of the Reliance
Anil Dhirubhai Ambani Group since 1st April 2008. Prior to joining the ADAG

Group, he was Regional CEO of Middle East and India Sub Continent (MENA) for Allianz SE
looking after Life and Non life Insurance business in countries from Egypt, GCC countries to
Bangladesh. He had stints as a CEO & Country Manager of Bajaj Allianz Life Insurance
Company; Bajaj Allianz General Insurance Company; and Allianz Operations in India. Prior to
that he was involved in setting up operations for Allianz in South East Asia. He spent 10 years in
Australia in various capacities with Allianz from CFO to Managing subsidiary companies as well
as operations in the Pacific Rim. Mr. Ghosh carries with him enormous experience in the
financial sector. He has held key positions in some of the most reputed financial organizations.
This includes directorship at Allianz ROSNO Life (Russia), Allianz Takaful Bahrain
Ltd.(Bahrain), Allianz Insurance Co. Egypt Ltd. (Egypt), Bajaj Allianz Life Insurance co. Ltd (
India); to name a few. His professional footprint has taken him to several countries across the
globe.

FUTURE OUTLOOK
The Indian Mutual Fund industry is one of the fastest growing industries in the financial services
sector with 44 AMCs currently operating in the country. The industry AAUM has grown at a
CAGR of 25% since 1965 and at a CAGR of 10% in the last three years, with 6, 64,824 crores of
average assets as on March 31, 2012.
Your Company intends to aggressively pursue growth opportunities in the mutual fund industry
both domestic and international and therefore be the most preferred investment choice for
investors. Your Company expects that an emerging market like India would experience a
sustained higher growth rate. Given the country's high household savings rate along with the
current low levels of investments by retail investors where only less than 3% of the household
savings is channeled into capital markets, your Company believes that the Mutual Fund Industry
is still in a nascent stage and has a huge opportunity for growth and expansion. Being one of the
large players in the Industry, your Company will continue investing in growing the market size,
achieving product innovation, educating the investors, increasing the distribution reach,
enhancing customer service infrastructure with aggressive expansion strategies.

SBI MUTUAL FUND

CORPORATE PROFILE
With 25 years of rich experience in fund management, we at SBI Funds Management Pvt. Ltd.
bring forward our expertise by consistently delivering value to our investors. We have a strong
and proud lineage that traces back to the State Bank of India (SBI) - India's largest bank. We are
a Joint Venture between SBI and AMUNDI (France), one of the world's leading fund
management companies.
With our network of over 222 points of acceptance across India, we deliver value and nurture the
trust of our vast and varied family of investors.
Excellence has no substitute. And to ensure excellence right from the first stage of product
development to the post-investment stage, we are ably guided by our philosophy of growth
through innovation and our stable investment policies. This dedication is what helps our
customers achieve their financial objectives.
Vision
To be the most preferred and the largest fund house for all asset classes, with a consistent track
record of excellent returns and best standards in customer service, product innovation,
technology and HR practices.
Services
Mutual Funds
Investors are our priority. Our mission has been to establish Mutual Funds as a viable investment
option to the masses in the country. Working towards it, we developed innovative, need-specific
products and educated the investors about the added benefits of investing in capital markets via
Mutual Funds.
Today, we have been actively managing our investor's assets not only through our investment
expertise in domestic mutual funds, but also offshore funds and portfolio management advisory
services for institutional investors.
This makes us one of the largest investment management firms in India, managing investment
mandates of over 5.4 million investors.

Portfolio Management and Advisory Services

SBI Funds Management has emerged as one of the largest player in India advising various
financial institutions, pension funds, and local and international asset management companies.
We have excelled by understanding our investor's requirements and terms of risk / return
expectations, based on which we suggest customized asset portfolio recommendations. We also
provide an integrated end-to-end customized asset management solution for institutions in terms
of advisory service, discretionary and non-discretionary portfolio management services.
Offshore Funds
SBI Funds Management has been successfully managing and advising India's dedicated offshore
funds since 1988. SBI Funds Management was the 1st bank sponsored asset management
company fund to launch an offshore fund called 'SBI Resurgent India Opportunities Fund' with
an objective to provide our investors with opportunities for long-term growth in capital, through
well-researched investments in a diversified basket of stocks of Indian Companies.
BOARD OF DIRECTORS- AMC
Mr. Pratip Chaudhuri, (Chairman & Associate Director): Qualifications : B.Sc. (Hons),
MBA. Mr. Pratip Chaudhuri joined State Bank of India as Probationary Officer in 1974. He took
over charge as Chairman of State Bank of India on 7th April, 2011. Immediately prior to taking
over as Chairman, Mr. Chaudhuri was Dy. Managing Director & Group Executive (International
Banking), Mumbai. During his illustrious career spanning 36 years in State Bank of India, he
held several important positions like Chief General Manager (Foreign Offices) at Corporate
Centre, Mumbai, Managing Director, State Bank of Saurashtra, Chief General Manager, Chennai
Circle etc.
Shri Jayesh Gandhi (Independent Director): Qualifications : B.Com, F.C.A. Shri Jayesh
Gandhi is a Chartered Accountant and Senior Partner from N.M.Raiji & Co. Chartered
Accountants, Mumbai. Since last 18 years Shri Gandhi has audit assignments of various
companies like ICICI Group including ICICI Bank Ltd., Wipro Group, Tata Finance Ltd., Tata
Tea Ltd., Tata Chemicals Ltd. and Prism Cement Ltd. He also handles various other assignments
in the audit of mutual funds. He is also a director on the Board of various companies.
Mr. Deepak Kumar Chatterjee (Managing Director): Qualifications: M.Sc., MBA. Mr.
Deepak Kumar Chatterjee brings with him experience of over 32 years in State Bank of India in
various areas such as Credit Administration, Investment Banking, International Banking
Operations and Branch Management. In his previous assignment, Mr. Chatterjee was General
Manger (Financial Institutions Group), International Business Group in SBI where he was
handling fund raising for SBI outside India, Country Risk and Bank exposures.

Dr. H. Sadhak (Independent Director): Qualifications: MA (Eco), Ph.D (Industrial Finance) &
Diploma in Operation Research for Management (DORM). Dr. Sadhak has more than 30 years
of experience in Financial Services Industry including Pension Funds, Mutual Funds, Life
Insurance and Banking. At present, he is an advisor in Price Waterhouse Coopers (PwC)
providing advice for financial services, especially Pension & Insurance practices.
He has also served on various Committees & Working Groups as a Technical Expert. He has
published more about 200 articles/Research Papers. He has also received many National level
awards/prizes. He has also attended several Seminar and Conference in India and abroad mostly
as a speaker. He is also on the Board of the Arch Pharmalabs Ltd. (Independent Director),
Clearing Corporation of India Ltd. (Nominee Director of LIC of India) & Corp Bank Securities
Ltd. (Independent Director).
Mrs. Madhu Dubhashi (Independent Director): Qualifications : B. Com (Delhi University),
PGDBM (IIM, Ahmedabad). Mrs. Dubhashi is a graduate with Economics (Honours) from
Miranda House, Delhi University (1968-71) and a post graduate in Business Administration from
the Indian Institute of Management, Ahmedabad (1971-73). She has been associated with the
capital market for over 37 years with an experience including assessment of viability of projects,
post sanction follow ups for ICICI Bank Limited, managing of IPOs and FOOs during her tenure
with Standard Chartered Bank, Investment banking division. She has also been instrumental in
the set up of a data centre and facilities for financial analysis of companies rated by CRISIL in
her capacity as Head of Global Data Services of India, a subsidiary of CRISIL.
She is presently working with INNOVEN Business Consultancy as Managing Partner. She has
addressed several seminars, written seminal papers on Non-Voting Shares and perils and dangers
of permitting Buy-Back of Shares by the Indian corporate and contributed a number of articles
to various reputed business journals.
Dr. H. K. Pradhan (Independent Director): Qualifications: M.A. M Phil, Ph D Post Doc.
Columbia University. Dr. H.K. Pradhan is a Professor of Finance & Economics at XLRI
Jamshedpur. Dr. Pradhan has experience of over 23 years in teaching & research etc. He has
handled various international assignments including two years as Regional Advisor,
Commonwealth Secretarial Regional Advisor, Pacific Islands & Fiji Islands. He has presented
several research papers in international conferences held in US, Europe, Asia, Africa and Pacific
countries related to Securities and Capital Market. He has also been Member, Board of
Governors, XLRI Jamshedpur (2003 -2005). Dr. Pradhan is associated with National Commodity
Derivative Exchange (NCDEX) since 2008 as Member, Index & Option Committee.
Shri Shyamal Acharya (Associate Director): Qualifications: B. Com, ICWA. Mr. Shyamal
Acharya has an experience of over 34 years in State Bank of India (SBI). Recently, he took over
as Deputy Managing Director & Group Executive (Associates & Subsidiaries) of SBI w.e.f July
01, 2011. Prior to this, Mr. Acharya was heading the Mid Corporate Group of the SBI.

Assignments held during last 10 years in SBI includes Chief General Manager, Mumbai Circle,
Chief General manager, Rural Business, General Manager, Network II, Hyderabad, General
Manager, Mid Corporate SBU, Mumbai.
Mr. Shishir Joshipura (Independent Director): Qualifications : BE Mechanical from BITS,
Pilani and Advance Management Programme (AMP) from Harvard Business School. Mr. Shishir
Joshipura is the Managing Director of SKF India Limited since December 2009 and also the
Country Manager for the region which includes the groups business of SKF Technologies
Private Limited and Lincoln Helios India Limited. He began his illustrious career of 26 years in
Thermax as a trainee engineer and served in different capacities with the organization. He was
appointed as Chief Executive Officer of Thermax Energy Performance Services Limited in 1999.
Mr. Shishir Joshipura has deep knowledge in the field of Energy Efficiency, Renewable Energy
and Carbon Intensity Reduction. Mr. Joshipura is also a Director on the board of Lincoln Helios
India Limited, Thermax Sustainability Energy Solutions Limited, Alliance for an Energy
Efficient Economy (non-profit making organization).
He has also been awarded as UDYOG RATTAN from Institute of Economic Studies - 2011.
Mr. Thierry Raymond Mequillet (Associate Director): Qualifications : EM Lyon Masters in
Management, Member of Hong Kong Securities Institute. Mr. Thierry Mequillet is a Chief
Executive Officer of Amundi Hong Kong Limited, North Asia since January 1999. Prior to that,
Mr. Mequillet was Chief Operating Officer of Indosuez Asset Management Hong Kong Limited.
He has over 30 years of professional experience in Banking and Asset Management
internationally and held various position viz.: Regional General Manager Finance &
Operations, Indosuez Asset Management Asia Limited, Hong Kong; Financial Controller,
Indosuez Paris; Deputy General Manager, Indosuez Singapore.
Mr. Mequillet is also a Director on the board of various companies viz., Amundi HK Limited,
Indosuez Asset Nominees Limited, Amundi India Holding, ABC CA, Alliance Franaise de
Hong Kong.
Mr. Fathi Jerfel (Associate Director): Qualifications : Engineering degree from Ecole Polytechnique, Engineering degree from the Institut Franais du Petrole & Post graduate degree in
Economics (Petroleum Management) from the University of Dijon. Mr. Fathi Jerfel is Deputy
Chief Executive Officer of Amundi SA in charge of investment solutions for Retail Network
Division. After a start at Credit Lyonnais as Head of Financial Engineering and Fixed Income
(1986-2001), he joined Crdit Agricole Asset Management in 2002 as Head of Derivatives
Arbitrage & Cumulative Research. In 2005, Mr. Jerfel was appointed as Chief Executive Officer
of Crdit Agricole Structured Asset Management. Some of the positions he held are: Director,
Amundi; Director, Societe Generale Gestion; Chairman, Amundi Hellas MFMCSA (Exemporiki
Asset Management MFCM); Chairman, Amundi SGR S.P.A.

Mr. Philippe Batchevitch (Alternate Director to Mr. Jerfel): Qualifications : SKEMA

School of Management, Lille, France & Harvard Business School AMP. Mr. Philippe
Batchevitch has been deputed from Amundi Group as Deputy Chief Executive Officer of SBI
Funds Management Private Limited w.e.f July 20, 2011. After his first venture in New York, he
moved subsequently to BFCE (French Exim Bank) in 1988 as a currency option dealer, then
Bank Indosuez in 1991 where he assumed different Capital Market positions in Paris, Riyadh,
Singapore, Tokyo and Istanbul. In 2003, he took the CEO role at NHCA Asset Management,
joint venture set up in partnership with NH, one of the leading banking networks in South Korea.
In 2007, Philippe joined Caam Ai Inc. Chicago as Country Head. Before moving to SBIFMPL,
he has actively participated in the integration of international joint-ventures and partnerships on
behalf of Amundi Asset Management.
MANAGEMENT TEAM
Mr. Deepak Kumar Chatterjee: profile discussed earlier in report
Mr. Philippe Batchevitch: profile discussed earlier in report
Mr. K. T. Ravindran: Chief Operating Officer, Mr. Ravindran, General Manager, State Bank of
India (SBI), has over 30 years of experience in various areas at SBI such as Credit
Administration, Monitoring Asset Quality, International Banking Operations, Retail Banking,
Branch Management, Internal Audit functions, Circle Balance Sheet and Compliance. Prior to
assuming the charge of Chief Operating Officer at SBI Funds Management Pvt. Ltd, Mr.
Ravindran was Deputy General Manager (Credit) of SBI Chennai Circle.
Mr. Navneet Munot: Chief Investment Officer, Navneet joined SBI Funds Management Private
Limited as Chief Investment Officer in December 2008. He brings with him over 15 years of rich
experience in Financial Markets. In his previous assignment, he was the Executive Director &
head - multi - strategy boutique with Morgan Stanley Investment Management. Prior to joining
Morgan Stanley Investment Management, he worked as the Chief Investment Officer - Fixed
Income and Hybrid Funds at Birla Sun Life Asset Management Company Ltd. Several funds
managed by Navneet got recognition for their consistent superior risk-adjusted performance and
won several awards from independent agencies such as CRISIL-CNBC TV 18, ICRA, Reuters
Lipper and got top ranking in Value Research. Navneet had been associated with the financial
services business of the group for over 13 years and worked in various areas such as fixed
income, equities and foreign exchange. His articles on matters related to financial markets have
widely been published.
Navneet is a postgraduate in accountancy and business statistics and a qualified Chartered
Accountant. He is also a charter holder of the CFA Institute USA and CAIA Institute USA. He is
also an FRM charter holder of Global Association of Risk professionals (GARP).

Ms. Aparna Nirgude: Chief Risk Officer, Aparna has rich experience of over 17 years with SBI
Mutual Fund and has been heading the Risk function since 2005. Prior to this, she has handled
various responsibilities within Investment Management and Research. Before taking charge as
Chief Risk Officer, she headed the Research function in SBI Mutual Fund.
Aparna holds a degree in Management from the prestigious Jamnalal Bajaj Institute of
Management Studies.
Mr. R. S. Srinivas Jain: Chief Marketing Officer, Srinivas Jain has an experience of over 18
years in the Financial Services industry, with over 13 Years in Asset management companies
apart from Broking and Investment Advisory companies; he has been associate with SBI Funds
Management since 2001.
He is currently the Chief Marketing Officer at SBI Funds Management Pvt Ltd, a joint venture
between State Bank of India, the largest commercial bank in India and AMUNDI Asset
Management, (Paris). SBI Funds management today is a leading asset management company in
India managing with over 6 Million Investors.
Srinivas Jain took over as Chief Marketing officer in Feb 2005 prior to which he was Regional
head - South for SBI funds Management Pvt. Ltd from 2001. Apart from many recognition the
fund house has received, he was instrumental in SBI Mutual Fund being awarded as the most
preferred Mutual Fund for 2 years in a row from CNBC Awaaz. And the brand has consistently
been rated as the no. 1 brand in the mutual fund space by AC Neilsen in the survey Winning
Brands in terms of consumer preference equity, saliency, ratios and imagery. SBI Mutual fund
was recently voted Gold by Readers Digest as Trusted Brand 2011 in the Investment
Management Category.
He not only represents SBI Funds Management in various forum, but also is actively involved in
various initiatives in mutual fund industry. He guides and leads enthusiastic and passionate team
of 200+ bright professionals across the country and oversees business development , distribution,
product management and marketing & corporate communication functions of the company. He
is a Commerce Graduate from Bangalore University with a Cost Accounting background.
Mr. Rakesh Kaushik: Sr. Vice President (Accounts & Administration), Mr. Kaushik has over
26 years of experience with the State Bank group out of which 17 years is with SBI Funds
Management Private Limited in the areas of Finance, Audit, Taxation, Administration,
Operations, Customer Service and Compliance. Prior to joining SBI Funds Management Private
Limited, he worked with State Bank of India and State Bank of Patiala in the areas of Retail
Banking, Accounts, Foreign Exchange and Credit.
Mr. D.P.Singh: Head of Sales, Mr. D. P. Singh has experience of more than 20 years and is
associated with SBIFMPL since 1998. Mr. Singh was appointed as Head of Sales in 2008 and is
responsible for supervising the sales function of various SBIMF schemes and administering the

Sales Offices across the country. Prior to this, he was designated as Zonal Head North of
SBIFMPL.
Ms. Vinaya Datar: Company Secretary & Compliance Officer, Ms. Vinaya Datar has overall
experience of more than 15 years, including over 8 years in the field of financial services. She
has extensively worked in the areas of Compliance, Secretarial, and Legal. Prior to this
assignment, she was Assistant Vice President - Compliance with Mirae Asset Global
Investments (India) Pvt. Ltd. Ms. Datar has also been previously associated with Reliance
Capital Asset Management Ltd, IL&FS Limited and UTI Infrastructure & Services Limited.
Mr. C. A. Santosh, Head - Customer Service: Mr. C. A. Santosh has joined SBI Funds
Management (P) Ltd as Chief Manager - Customer Service. He has over 12 years of experience
and started his career in the Aviation Industry (Customer Service) and later moved on to
Banking.
His last assignment was in the Kotak Mahindra Bank as Chief Manager - Customer Contact
Center.
PERFORMANCE OVERVIEW
Performance of Equity Schemes:
a) 67% of our equity assets under management are in top 2 quartiles on a one year horizon
b) Most of our equity schemes outperformed their respective benchmarks by more than 200 basis
points
c) SBI Magnum Emerging Business Fund continues its top decile performance.

FUTURE OUTLOOK AND OPERATIONS OF THE SCHEMES (for the year

ended march 31, 2012)
EQUITY OUTLOOK*: As the Murphys law says, anything that can go wrong will go
wrong. India was a classic example of this. Sticky inflation, depreciating currency and rising
interest rates coupled with policy inaction and execution failure led to a poor performance by
Indian capital markets during FY 2012. Corporate profitability took a major hit further impacting
asset creation. Political situation remained worrisome which put the whole policy making in
jeopardy. Headwinds from overseas markets, mostly fuelled by debt crisis in Europe, were also
the key triggers for the poor performance of stock markets in India. Corporate profitability is
likely to remain depressed in the near future given the higher input costs, wages, interest rates,
steep depreciation in currency and higher competitive intensity. With a hazy outlook and
depressed profitability, corporate India seems reluctant to commit new capital locally. Most of
the capex has been stalled, delayed or suspended. The situation will certainly put to test Indian
corporates wherewithal to navigate this challenging business environment.
The economy cannot afford continuance of sticky inflation, rising interest rates and a weaker
currency. While demand is an addressable issue with marginal stretch from the policy side it is
the governance that needs to step-up its response to the glaring supply gap on most of the input
parameters.One can expect a tactical readjustment by polity to get the structural India story back
on track sooner. There exists a possibility of an outlier blue-swan of synchronized occurrence
of favorable events like softened interest rates, global commodities and reversal of the currency
slide (they all have high interlinks).
In Todays pain lies tomorrows gain. We expect this period to offer a good opportunity to
investors to participate in the long term India story. In this scenario we prefer to focus on bottom
up stock picking with core beliefs in terms of quality (business, management, and cash flows),
prudence (on cash utilization) and agility (in terms of timing and allocation). We prefer to look
for businesses with strong franchise value, large consumption compulsion canvass opportunity
and penetration potential. We also remain alert to opportunities that provide tactical returns on
Asset plays at attractive valuations and rate sensitives given impending policy response. We
recommend investors to maintain the discipline of asset allocation and use the downturn in
equity market as an opportunity to gradually build exposure.
*only equity outlook is taken into consideration because we are dealing with equity schemes

Operations of the schemes:

SBI Mutual Fund manages 28 open ended and 11 close ended schemes, out of which 17 are
equity schemes (2 close ended),1 balance scheme, 2 liquid schemes,1 gilt scheme,16 debt
schemes (9 close ended) and 1 Gold ETF scheme & 1 Gold Fund scheme. SBI Mutual Fund
continues to hold certain securities which were sold by it but these have not been got transferred
by the buyers in their names. These securities do not belong to SBIMF, but are held on behalf of
the unknown buyers and not as Owners/Investors. Such securities are transferred to the buyers
against claims after establishing the genuineness of the claim. The market value of such
securities as on 31st March 2012 is ` 14.89 crore
Scheme-wise commentary*:
SBI Blue Chip Fund: has generated a return of (5.34%) (31st March 2011 to 31st March 2012)
as compared to a return of (9.23%) for its benchmark (BSE100). The fund has outperformed the
benchmark due to its underweight on Financials, Materials, Industrials and IT.
Magnum Tax Gain Scheme 1993: has performed very well and has outperformed the
benchmark index (BSE100). Most of our sectoral calls, in terms of being underweight financials
and overweight pharmaceuticals, cement, etc., have worked well for us. Even our bottoms up
stock picks have performed exceedingly well contributing meaningfully to the performance of
the Fund.
SBI Infrastructure Fund Series I: has generated a performance of (16.61%) during the
period 31st March 2011 to 31st March 2012, as compared to a return of (9.23%) for its
benchmark (BSE100). The fund cannot invest in Healthcare and Consumer Staples, which were
the main drivers of performance of the BSE 200 during the fiscal year 2011/2012.
Magnum NRI FAP: has generated a return of (2.92%) during the period 31st March 2011 to
31st March 2012, as compared to a return of (9.23%) for its benchmark (BSE100). The fund
outperformed the benchmark through the execution of active asset allocation between equity and
cash to benefit from increased volatility in the market.
Magnum IT Fund: has generated a return of (3.15%) (31st March 2011 to 31st March 2012) as
compared to a return of (7.12%) for its benchmark (BSE IT Index). The outperformance was
driven by higher allocation to midcaps and prudent stock selection among large-caps.
Magnum FMCG Fund: has generated a return of 26.63% (31st March 2011 to 31st March
2012) as compared to a return of 24.94% for its benchmark. (BSEFMCG Index). The fund has
outperformed the benchmark due to overweight on VST Industries, TTK Prestige, Marico and
underweight on United Spirits and Dabur.
Magnum Index Fund has generated a return of (8.96%) (31st March 2011 to 31st March 2012)
as compared to a return of (9.23%) for its benchmark (S&P CNX Nifty). The Magnum Index

Fund does not take any view on the market, the objective being to replicate the performance of
its benchmark.
Magnum Pharma Fund: has generated a return of 9.66% (31st March 2011 to 31st March
2012) as compared to a return of 10.00% for its benchmark (BSE Healthcare Index). Though, the
fund benefited from positive active exposure in IPCA, Divis, Strides and from holding Lupin, the
fund underperformed the benchmark from being underweight Sun Pharma, GSK Pharma and
Ranbaxy.
SBI Arbitrage Opportunities Fund has generated a performance of 8.62% (31st March 2011 to
31st March 2012) as compared to a return of 8.45% for its benchmark (Crisil Liquid Fund
Index). With the advent of technology on the trading desks, arbitrage opportunities have shrunk
drastically over the last few years. Nevertheless, the fund is still delivering returns better than
Crisil Liquid Fund Index, its benchmark.
*only project sample schemes are discussed here

COMPARISION OF VARIOUS SCHEMES UNDER EQUITY*

*further the ten set of comparisons stated below are taken as sample and explained in detail as part of the study.
Comparisons are named as comparison.1, comparison.2 up to comparison.10 for convenience of presentation and
ease of use.

Scheme
Fund class
Fund Type
Ranking
Scheme assets rs in cr
(as on june 30,2012)
Inception date
Bench mark
Mininmum
investment (in rs.)
AMC Assets (in cr, as
on june 30,2012)
Latest NAV (Rs/unit)
Performance
3 months
6 months
1 year
Portfolio
Top 5 holdings

Weightage to top 5
holdings
Top 3 Sectors

Weightage to top 3
sectors

COMPARISON 1
ICICI Pru Focused
SBI Blue Chip Fund
Bluechip Equity (G)
(G)
Large cap
Large cap
Open ended
Open ended
Rank 1
Rank3
3809.54
686.36

Reliance Equity
Fund-RP(G)
Large cap
Open ended
Rank5
1056.83

May 7, 2008
S&P CNX NIFTY
5000

Jan 20, 2006

BSE 100
5000

Mar 07, 2006

S&P CNX NIFTY
5000

73049.66

47184.11

80694.47

16.50000

14.54000

13.25910

9.1%
-3.5%
10.1%

11.8%
3.3%
12.5%

13.2%
-2.0%
11.0%

HDFC bank, ITC,

Infosys, ICICI Bank,
Bajaj auto
34.94%

HDFC, HDFC Bank,

ICICI Bank, Infosys,
HCL Tech
27.86%

Divis labs, Reliance,

ICICI Bank, Infosys,
HCL Tech
23.88%

Banking/Finance,
Technology, oil and
gas
50.48%

Banking/finance,
technology,
pharmaceuticals
50.54%

Engineering,
automotive,
Pharmaceuticals
35.79%

Management & fees

Manish Gunwani
Sohini Andani
OmPrakash kuckian
Fund manager
0%
0%
0%
Entry load
1.00%
0%
1.00%
Exit load
ANALYSIS: ICICI Pru Focused Bluechip Equity is ranked 1 in large cap category by
Crisil. It is advised as a strong buy with Latest NAV of 16.500 as on Aug 17, 2012 and if
already invested then investment should be continued in this scheme. Whereas SBI
BlueChip fund is ranked 3 in this category and investors are advised to switch to a better
performance scheme at this stage as its NAV as on Aug 17, 2012 is 14.540 on the other hand
reliance equity fund is performing relatively weak and ranked 3 with NAV of 13.359 which
is very less as compared to other two schemes

Scheme

COMPARISON 2
SBI Magnum Tax Gain
ICICI Pru Tax Plan

Fund class

ELSS

ELSS

ELSS

Fund Type

Open Ended

Open Ended

Open Ended

Ranking

Rank 1

Rank 3

Rank 2

Scheme assets rs in
cr (as on june
30,2012)

1295.14

4518.12

1969.84

Inception date

Aug 09, 1999

Mar 31, 1993

Aug 23, 2005

Bench mark

S & P CNX 500

BSE 100

BSE 100

Mininmum
investment (in rs.)

500

500

500

AMC Assets (in cr,

as on june 30,2012)

73,049.66

47,184.11

80,694.47

Latest NAV
(Rs/unit) As on Aug
17, 2012

138.96000

60.80000

21.75220

Reliance Tax Saver

(ELSS)

Performance
3 months

9.5%

9.9%

7.3%

6 months

-0.8%

1.8%

0.8%

1 year

9.9%

12.4%

11.9%

Top 5 holdings

Reliance, Infosys,
Bharti Airtel, ICICI
Bank, Hind Zinc

HDFC Bank, ICICI

Bank, TCS, HDFC,
Grasim

Eicher Motors, Maruti

Suzuki, Madras
Cements, Bajaj
Finance,SBI

Weightage to top 5
holdings

32.1%

25.06%

25%

Top 3 Sectors

Oil and gas,

Banking/Finance,
Technology

Banking/Finance,
Technology,
Pharmaceuticals

Engineering,
Automative,
Banking/Finance

Weightage to top 3
sectors

51.36%

45.11%

51.54%

Fund manager

Chintan Haria

Jayesh Shroff

Ashwani Kumar/Viral
Berawala

Entry load

0%

0%

0%

Exit load

0%

0%

0%

Portfolio

Management & fees

ANALYSIS: In ELSS category, there are various fund houses that offers scheme as it is
very attracting to customers, ICICI Pru tax plan is ranked 1 in this category by CRISIL as
it has a very good performance and recommended as a strong buy, whereas SBI is ranked 3
and is an average performer here and reliance is ranked 2 and recommended to be kept
but also with an alert to keep a check on the performance due to its decreasing NAV

Scheme

COMPARISON 3
SBI Infrastructure Fund
ICICI Pru
Series I
Infrastructure Fund

Reliance Infrastructure
Fund

Fund class

Thematic Infrastructure

Thematic
Infrastructure

Thematic Infrastructure

Fund Type

Open Ended

Open Ended

Open Ended

Ranking

Rank 3

Rank 4

NOT RANKED

Scheme assets rs in
cr (as on june
30,2012)

1864.49

649.80

633.01

Inception date

Aug 16, 2005

May 11, 2007

June 23, 2009

Bench mark

BSE 100

BSE 100

BSE 100

Mininmum
investment (in rs.)

5000

5000

5000

AMC Assets (in cr,

as on june 30,2012)

73,049.66

47,184.11

80,694.47

Latest NAV
(Rs/unit) As On Aug
17, 2012

25.11000

7.65000

6.67810

Performance
3 months

9.9%

11.5%

3.5%

6 months

-9.1%

-8.2%

-18.5%

1 year

-2.3%

-8.2%

-5.2%

Top 5 holdings

Reliance, ONGC,
HDFC Bank, Bharti
airtel, ICICI Bank

HDFC Bank, ICICI

Bank, Power Grid
Corp, Coal India,
ONGC

ICICI Bank, KSB

Pumps, Jaiprakash
Asso, Jindal Saw,
Larsen

Weightage to top 5
holdings

36%

34.73%

24.87%

Top 3 Sectors

Banking/Finance, Oil
& Gas, Utilities

Banking/Finance, Oil
& Gas, Cement

Cements, Metals &

Mining, Engineering

Weightage to top 3
sectors

56.81%

64.12%

58.43%

Fund manager

Yogesh Bhatt

Ajit Dange

Sunil Singhania

Entry load

0%

0%

0%

Exit load

1.00%

1.00%

1.00%

Portfolio

Management & fees

ANALYSIS: In themetic infrastructure category, these fund houses are not doing well,
ICICI Pru, an outperformer, is ranked 3 in this category with an average buy and a better
switch to other scheme recommendation. Whereas SBI is ranked 4 with below average
performance and sell recommendation but Reliance has not yet gained any rank or
recommendation.

Scheme

COMPARISION 4
SBI Magnum NRI fund FAP

Reliance NRI Equity Fund

Fund class

Equity Oriented Hybrid Specialty

Funds

Diversified Equity

Fund Type

Open Ended

Open Ended

Ranking

NOT RANKED

NOT RANKED

Scheme assets rs in cr 7.00

(as on june 30,2012)
Inception date

Jan 13, 2004

Bench mark

BSE 200

Mininmum
investment (in rs.)

50000

91.25

Nov 01, 2004

5000

AMC Assets (in cr, as 47184.11

on june 30,2012)

80,694.47

28.95150

38.73480

3 months

6.2%

11.3%

6 months

1.2%

-0.7%

1 year

3.7%

11.3%

Latest NAV (Rs/unit)

as on Aug 17, 2012
Performance

Portfolio
Top 5 holdings

Coal India, HUL, NTPC ICICI

Bank, ONGC

ICICI Bank, HUL, Maruti Suzuki,

Tata Motors, Reliance

Weightage to top 5
holdings

24.62%

26.09%

Top 3 Sectors

Banking/Finance, Metals &

Mining, Utilities

Banking/Finance, Technology,
Engineering

Weightage to top 3
sectors

29.07%

49.86%

Fund manager

Ajit Dange

Omprakash Kuckian

Entry load

0%

0%

Exit load

0.25%

1.00%

Management & fees

ANALYSIS: SBIs NRI fund fall under equity oriented hybrid specialty category and
Reliances NRI scheme fall under diversified equity category. Both are not ranked and not
showing any good performance still from dec 2011 till now reliance has shown a gradual
incress but its NAV is lower by 0.03%. by analyzing the past performance we can expect
future rise in this fund as the top sector of banking and finance are stronge. Now if we talk
about SBI its performance is quite fluctuating with a low in dec 2011 and a high on juneaug 2012 so the comment for this scheme are reserved at this point of time

Scheme

COMPARISON 5
ICICI Pru Bkg & Fin serv

Reliance Banking Fund

Fund class

Sector- Banking & Finance

Sector- Banking & Finance

Fund Type

Open Ended

Open Ended

Ranking

NOT RANKED

NOT RANKED

Scheme assets rs in cr 143.94

(as on june 30,2012)

1671.49

Inception date

Aug 07, 2008

May 21, 2003

Bench mark

BSE Bankex

Bank Nifty

Mininmum
investment (in rs.)

5000

5000

AMC Assets (in cr, as 73,049.66

on june 30,2012)

80,694.47

18.29000

96.41630

3 months

15.2%

11.9%

6 months

0.6%

-7.4%

1 year

14.7%

16.4%

Latest NAV (Rs/unit)

as on Aug 17, 2012
Performance

Portfolio
Top 5 holdings

HDFC Bank, ICICI Bank, M&M

Financial, Indusland Bank,
Sundaram Fin

ICICI Bank, HDFC Bank, Bajaj

Finance, SBI, Federal Bank

Weightage to top 5
holdings

57.09%

51.14%

Top 3 Sectors

Banking/Finance

Banking/Finance

Weightage to top 3
sectors

97.01%

87.63%

Fund manager

Venkatesh Sanjeevi

Sunil Singhania/ Shrey Loonker/

Sanjay Parekh

Entry load

0%

0%

Exit load

0.50%

1.00%

Management & fees

ANALYSIS: However this category is not ranked by CRISIL but there is no out
performance by any of the funds, fluctuation is very high in case of ICICI Pru whereas
Reliance is not at all showing any better with an all time low but from January to march
2012 it showed a gradual increase and from march onwards, it started showing a decrease.

Scheme

COMPARISON 6
ICICI Pru Tech. Fund

SBI Magnum IT Fund

Fund class

Sector- Technology

Sector- Technology

Fund Type

Open Ended

Open Ended

Ranking

NOT RANKED

NOT RANKED

Scheme assets rs in cr 106.56

(as on june 30,2012)

40.96

Inception date

Jan 28, 2000

Jul 31, 1999

Bench mark

BSE Teck

BSE Info Tech

Mininmum
investment (in rs.)

5000

2000

AMC Assets (in cr, as 73,049.66

on june 30,2012)

47,184.11

18.58000

22.17000

3 months

4.3%

3.4%

6 months

0.5%

-7.3%

1 year

24.6%

16.3%

Latest NAV (Rs/unit)

as on Aug 17, 2012
Performance

Portfolio
Top 5 holdings

Infosys, MindTree, Oracle

Financ, Wipro, Persistent

Infosys, TCS, HCL Tech, Wipro

Weightage to top 5
holdings

81.51%

86.08%

Top 3 Sectors

Technology

Technology

Weightage to top 3
sectors

93.22%

97.01%

Fund manager

Mrinal Singh

Anup Upadhyay

Entry load

0%

0%

Exit load

1.00%

1.00%

Management & fees

ANALYIS: Technology is an interesting sector to keep in portfolio, however it is not

showing a peak of growth but it is not at all an underperforming sector. If we look
at the past performance of SBI it was at an all time low in August 2011 but from
there on it increased with a fluctuation to achieve an all time high in Feb-March
2012 but it is somewhat a fluctuating scheme. ICICI is also a similar performer in
this category but entering into this scheme with SBI is quite easy and its NAV are
better too, so it is recommended over ICICI.

Scheme

COMPARISION 7
ICICI Pru FMCG Fund

SBI MSFU- FMCG Fund

Fund class

Sector- FMCG

Sector- FMCG

Fund Type

Open Ended

Open Ended

Ranking

NOT RANKED

NOT RANKED

Scheme assets rs in cr 156.72

(as on june 30,2012)
Inception date

Mar 30, 1999

Bench mark

BSE FMCG Sector

Mininmum
investment (in rs.)

5000

83.61

Jul 31, 1999

2000

AMC Assets (in cr, as 73,049.66

on june 30,2012)

47,184.11

96.45000

43.11000

3 months

8.2%

9.8%

6 months

21.7%

23.8%

1 year

24.9%

33.5%

Latest NAV (Rs/unit)

as on Aug 17, 2012
Performance

Portfolio
Top 5 holdings

ITC, HUL, Marico, VST,

GlaxoSmith Con

ITC, HUL, GlaxoSmith Con, Emami,

Dabur India

Weightage to top 5
holdings

76.99%

68.53%

Top 3 Sectors

Tabacco, Cons Nondurables,

Food & Beverages

Tabacco, Cons Nondurables, Food &

Beverages

Weightage to top 3
sectors

88.35%

93.05%

Fund manager

Yogesh Bhatt

Saurabh Pant

Entry load

0%

0%

Exit load

1.00%

1.00%

Management & fees

ANALYSIS: These are the only two houses dealing in the FMCG sector at this stage,
ICICI is doing quite well with an all time high in AUG 2012, whoever purchased the
scheme in Dec 2011 must be enjoying the benefits. FMCG is very fast growing sector in
india and is considered as very important from future outlook, SBI is also doing quite good
But a pro investor would prefer ICICI for this sector.

Scheme

COMPARISON 8
SBI Magnum Index Fund

Reliance Index Fund Nifty Plan

Fund class

Index

Index

Fund Type

Open Ended

Open Ended

Ranking

Rank 4

Rank 3

Scheme assets rs in cr 34.69

(as on june 30,2012)

65.74

Inception date

Jan 14, 2002

Sep 23, 2010

Bench mark

S&P CNX Nifty

S&P CNX Nifty

Mininmum
investment (in rs.)

5000

5000

AMC Assets (in cr, as 47.184.11

on june 30,2012)

80,694.47

45.94860

8.88530

3 months

10.6%

10.9%

6 months

-3.8%

-3.4%

1 year

8.8%

9.7%

Latest NAV (Rs/unit)

as on Aug 17, 2012
Performance

Portfolio
Top 5 holdings

ITC, Reliance, ICICI Bank,

Infosys, HDFC Bank

ITC, Reliance, ICICI Bank, Infosys,

HDFC Bank

Weightage to top 5
holdings

35.22%

36.02%

Top 3 Sectors

Banking/Finance, Oil & Gas,

Technology

Banking/Finance, Technology, Oil &

Gas

Weightage to top 3
sectors

52.04%

48.8%

Fund manager

Raviprakash Sharma

Krishan Daga

Entry load

0%

0%

Exit load

1.00%

1.00%

Management & fees

ANALYSIS: In this category, Reliance is ranked 3 by CRISIL as an average buy and

ICICI is ranked 5 as a strong sell because it is showing a week and relatively fluctuating
performance, so here Reliance is a better choice obviously.

Scheme

COMPARISON 9
SBI Magnum Pharma Fund

Reliance Pharma Fund

Fund class

Sector- Pharma & Health Care

Sector- Pharma & Health Care

Fund Type

Open Ended

Open Ended

Ranking

NOT RANKED

NOT RANKED

Scheme assets rs in cr 42.39

(as on june 30,2012)

584.07

Inception date

Jul 31,1999

May 26, 2004

Bench mark

BSE Healthcare Sector

BSE Healthcare Sector

Mininmum

2000

5000

investment (in rs.)

AMC Assets (in cr, as 47184.11
on june 30,2012)

80,694.47

54.06000

62.42700

3 months

11.0%

10.6%

6 months

17.5%

12.7%

1 year

22.6%

15.9%

Top 5 holdings

Dr Reddys Lab, Lupin, Cadila

Health, Cipla, Divis Labs

Divis Labs, Sanofi India, Cipla,

Ranbexy Labs, Sun Pharma

Weightage to top 5
holdings

51.41%

44.63%

Top 3 Sectors

Pharmaceuticals

Pharmaceuticals, Food &

Beverages

Weightage to top 3
sectors

93.81%

98.17%

Fund manager

Tanmaya Desai

Sailesh Raj Bhan

Entry load

0%

0%

Exit load

1.00%

1.00%

Latest NAV (Rs/unit)

as on Aug 17, 2012
Performance

Portfolio

Management & fees

Analysis: However none of these schemes are ranked by crisil but if we analyses the
performance of these two schemes it is evaluated that they are doing well and there Latest
NAV is quite good so for the diversification purpose these schemes can be kept in the
portfolio and when we have a look at the relative performance reliance is doing better than
SBI on the other hand SBI has lesser minimum investment obligation then reliance but the
difference is negligible so Reliance is recommended over SBI

Scheme

COMPARISON 10
SBI Arbitrage Opp. Fund

Reliance Arbitrage Advantage

Fund class

Arbitrage & Arbitrage plus

Arbitrage & Arbitrage plus

Fund Type

Open Ended

Open Ended

Ranking

NOT RANKED

NOT RANKED

Scheme assets rs in cr 66.09

(as on june 30,2012)
Inception date

1.56

Sep 15, 2006

Oct 08,2010

25000

5000

Bench mark
Mininmum
investment (in rs.)

AMC Assets (in cr, as 47184.11

on june 30,2012)

80,694.47

15.25090

11.80680

3 months

2.3%

3.1%

6 months

5.3%

5.9%

1 year

9.0%

9.6%

Latest NAV (Rs/unit)

as on Aug 17, 2012
Performance

Portfolio
Top 5 holdings

N.A.

Sun Pharma, United Spirits, Divis

Labs, Guj Flourochem, Larsen

Weightage to top 5
holdings

34.71%

Top 3 Sectors

Banking/Finance, Technology,
Metal & Mining

Pharmaceuticals, Food & Beverages,

Chemicals

Weightage to top 3
sectors

31.46%

31.1%

Fund manager

Suchita Shah

Krishan Daga

Entry load

0%

0%

Exit load

0.25%

1.00%

Management & fees

ANALYSIS: Arbitrage is quite interesting category to invest and those who invested in Aug
2011 are enjoying the gradual increase and very well performance of this category from
low in Aug 2011 to a high in Aug 2012. Arbitrage schemes of both the fund houses are
performing in a very similar way but the NAV of SBI is slightly higher the Reliance. It
should be noticed that the minimum enter amount of SBI I quite high the Reliance and also
the Exit load is quarter less the Reliance.

CONCLUSION
The construction of the mutual fund schemes portfolio is done by taking various factors so even
after evaluating the mutual funds and ranking them we cannot say which is the best fund house
or scheme in all. Nothing is certain in case of mutual funds as they are subject to market risks,
An estimate can be made considering various past performances and future outlooks and best
money out of these schemes can be generated.

LATEST AMENDMENTS IN MUTUAL FUNDS

In august first week, markets and mutual fund regulator SEBI came out with a package of new
and reformed rules regarding mutual funds, IPOs and investment advisers. In mutual funds, the
thrust of the changes is to set up an incentive system that will allow asset management
companies to charge higher expenses if they succeed in making inroads outside the larger cities
where fund investors are currently concentrated in. The new rules also incorporate a series of
other changes that collectively improve funds economics while imposing a somewhat higher
cost on investors. A back-of-the-envelope calculation shows that the industry, hypothetically,
will pocket close to Rs 583 crore if it charges 30 basis points on the existing equity asset base
(combined AUM of equity, balanced and ELSS Funds) of Rs 1,94,320 crore. The industry had a
total AUM of Rs 7, 30,000 crore on July 30. Out of the total Rs 583 crore, at least 80% of the
additional fee will be pocketed by the top five fund houses including HDFC Mutual,ICICI
Prudetial mutual fund, Reliance mutual fund, UTI mutual fund, and Birla Sunlife Mutual Fund.
A grey area in the new norms is that SEBI has not clarified on aspects such as the least amount
fund houses should raise in a year or the minimum number of investors it should have to avail of
the benefit of the extra fee of 30 basis points.
CHANGING COURSE

June 28: PM says MFs need to be revived

July 2: MFs meet FinMin officials
July 17: MFAC meets to discuss measures
Early August: Minutes of the meeting circulated; these include a 2% charge for
marketing at centres outside the top 15
MFAC members say the measure was not discussed; Sebi amends the minutes
August 16: SEBI board to meet

REFERENCES

www.amfiindia.com

www.valueresearchonline.com

www.mutualfundsindia.com

www.reliancemutual.com

www.sbimf.com

www.icicipruamc.com

www.moneycontrol.com