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A PROJECT REPORT ON ANALYSIS OF TOP 5 MUTUAL FUNDS
SUBMITTED TO:Prof. Vandana Balyan
SUBMITTED BY:Deepti Singh Prerna Shukla Neetam Kirti Ahuja Jiney Sachan Section-A
The successful completion of this Project may not have been possible, if not the kind assistance of our team members and many people who through their goodheart and knowledge supported a long way. We wish to pay our gratitude to Prof. vandana balyan, our faculty of Financial Management for giving us the opportunity of undertaking this Project where we got a chance to apply our classroom‘s learning, which lead to a successful completion of the Project and it will also help us to achieve our goals in long way.
The Indian mutual fund industry in recent years has exponential growth and yet it is still at a very nascent stage. We believe that the mutual fund industry has grown in terms of size or choices available, but is a long distance from being regarded as a mature one. To understand this one has to look at the global scenario. If one look at the global mutual fund industry, one has see that assets have grown by 185% between 2000 and 2009. In comparison, Indian assets outgrew at a staggering 446%, where as the US only grew by 158% and Europe by 242%. As our economy continues to grow at a spectacular rate there is a huge amount of wealth creating opportunities surfacing everywhere. Financial Planners have an immensely responsible role to play by identifying these opportunities and channeling them into wealth creating initiatives that would enable people to address their financial needs. To give an overview of a recent study conducted by Invest India, there are about 321.8 millions paid workers in India. Of this only 5.3 millions have an exposure to mutual funds. This is less than 2% of total work force. Even more interesting fact is that 77% of them reside in super metros and Tier I cities. Again, about 4 millions come in the Rs. 90,000-5 lakh income bracket. The penetration among the less than Rs. 90,000 and more than Rs 5 lack income bracket is very low. The need for the hour is to expand the market boundaries and expand scope in Tier II and Tier III cities. India is also one of the fastest growing markets for mutual funds, attracting a host of global players. Hence, investors will have an even wider range of products to choose from. The combination of the increase in number of fund houses along with new schemes and the increase in the number of people parking their saving in mutual funds has resulted in per cent during April-December 2009.
compared to 15000 in the US and 36000 in Europe. The gap is significant and has to be filled up with unique and better priced products. We have also . during which the likes of SBI. The total HNI (High Net Worth Individual) assets stood at about Rs 12 trillion and their assets are distributed over various assets classes.BOB and Canara Bank comes into existence The emergence phase (1993 – 2003).Pacific region in terms of percentage growth. Passing through the growth phase We have always read that fund industry has seen three phases – the UTI phase. commodity based funds. - - And now we are entering Phase V of the industry. 13476 billions for the corresponding period last year. when international players come in to India. In fact.This now stands at Rs 30314 billions as against Rs. . art funds and the like. real estate funds. Some have wound up their operations and a few of them are looking for re-entry. the public sector phase and the post – UTI phase. the Mutual fund proportion in this has increased. this is a win-win situation for Indian investors. when domestic players along with some global players have consolidated the MF industry. Yet we have less than 1000 schemes in India. India stands only second-best to Korea in the Asia. There has also been a rapid rise in the HNI segment. Statistics reveal that a higher portion of investors’ savings is now invested in market-linked avenues like mutual funds as compared to earlier times. Post UTI phase (2003 – 2009). Indian house holds have also increased their exposure to the capital market. We already have many experts expressing their concentration at the frequency of NFO launches. To top them MFs will have to come up with structured products. there have been four clear stages. Very interestingly. when not only are newer players readying to enter the market but are also looking at penetration and market expansion. there has been more than 2000% growth in the assets coming to MFs in the last 3 years. But if we study a bit more closely.UTI Phase (1964 – 1987) - Public sector phase (1987 – 1993). All in all.
These are all drivers for the fund industry. Their presence across India is expanding. The retail participation in equity schemes has also increased tremendously. He follows a contrarian’s approach. MUTUAL FUND MUTUAL FUND is a mechanism for pooling the resources by issuing units to the investors and investing funds in securities in accordance with objectives as disclosed document. which is likely to remain at this level for years to come. In this way. resulting in a change in asset management styles. Changing investor profile Today’s investor is quite young and very unlike the older generation. Our economy is booming. As our economy continuous to grow at a spectacular rate there is a huge amount of wealth creating opportunities surfacing everywhere. Distributors too are expanding their networks. The number of AMCs is increasing. The need of the investor populace has changed. Together. this is leading to the design of new and competitively-priced products. the trends clearly suggest that investors prefer NFOs to enter equities. from balanced funds to arbitrage funds.come up a long way from plain vanilla equity funds to hybrid funds. This in itself is both an opportunity and a challenge. He buys when the market flips and books profit when it rallies. Besides. implying greater emphasis on higher quality of intermediation. in offer . from sectoral funds to quant strategies. the regulator has taken up measures to safeguard investor interests. these greet investor warmly. we have now a sustained GDP growth of 8%. Financial Planners have an immensely responsible role to play by identifying these opportunities and channeling them into wealth creating initiatives that would enable people to adequately address their financial needs. Although many complain that the industry is still brokerage driven.
Investments in securities are spread across a wide cross-section of industries and sectors and thus the risk is reduced. . A mutual fund is required to be registered with Securities and Exchange Board of India (SEBI) which regulates securities markets before it can collect funds from the public. Diversification reduces the risk because all stocks may not move in the same direction in the same proportion at the same time. The mutual funds normally come out with a number of schemes with different investment objectives which are launched from time to time. Mutual fund issues units to the investors in accordance with quantum of money invested by them. The profits or losses are shared by the investors in proportion to their investments. Investors of mutual funds are known as unit holders.
All mutual funds whether promoted by public sector or private sector entities including those promoted by foreign entities are governed by the same set of Regulations. There is no distinction in regulatory requirements for these mutual funds and all are subject to monitoring and inspections by SEBI. In early 1990s. The primary objective at that time was to attract the small investors and it was made possible through the collective efforts of the Government of India and the Reserve Bank of India. SEBI notified regulations for the mutual funds in 1993. The history of mutual fund industry in India can be better understood divided into following phases: . The Evolution The formation of Unit Trust of India marked the evolution of the Indian mutual fund industry in the year 1963. The regulations were fully revised in 1996 and have been amended thereafter from time to time. mutual funds sponsored by private sector entities were allowed to enter the capital market. SEBI formulates policies and regulates the mutual funds to protect the interest of the investors. In the year 1992. Thereafter. SEBI has also issued guidelines to the mutual funds from time to time to protect the interests of investors. Government allowed public sector banks and institutions to set up mutual funds. The objectives of SEBI are – to protect the interest of investors in securities and to promote the development of and to regulate the securities market. Securities and exchange Board of India (SEBI) Act was passed.HISTORY OF MUTUAL FUNDS AND ROLE OF SEBI IN INDIA:Unit Trust of India was the first mutual fund set up in India in the year 1963.
Entry of Public Sector Funds .1987-1993 The Indian mutual fund industry witnessed a number of public sector players entering the market in the year 1987. 47. UTI launched more innovative schemes in 1970s and 80s to suit the needs of different investors. the assets under management of the industry increased seven times to Rs. By the end of 1987. which attracted the largest number of investors in any single investment scheme over the years. Establishment and Growth of Unit Trust of India .247 8. SBI Mutual Fund from the State Bank of India became the first non-UTI mutual fund in India. Children's Gift Growth Fund and India Fund (India's first offshore fund) in 1986.1964-87 Unit Trust of India enjoyed complete monopoly when it was established in the year 1963 by an act of Parliament. SBI Mutual Fund was later followed by Canbank Mutual Fund. Master share (India’s first equity diversified scheme) in 1987 and Monthly Income Schemes (offering assured returns) during 1990s.2% 0. six more schemes between 1981-84. In November 1987.004 1992-93 UTI Public Sector Total Amount Mobilised 11. Phase II. UTI launched its first scheme in 1964. However.1% crores.004 Mobilisation as % of gross Domestic Savings 5. It launched ULIP in 1971. Indian Bank Mutual Fund. LIC Mutual Fund. UTI remained to be the leader with about 80% market share.9% 6. named as Unit Scheme 1964 (US-64). . UTI's assets under management grew ten times to Rs 6700 crores.964 13.021 Assets Under Management 38. Bank of India Mutual Fund. By 1993.057 1. GIC Mutual Fund and PNB Mutual Fund.757 47. UTI was set up by the Reserve Bank of India and it continued to operate under the regulatory control of the RBI until the two were delinked in 1978 and the entire control was transferred in the hands of Industrial Development Bank of India (IDBI).Phase 1.
Growth and Consolidation . By 1994-95. Franklin Templeton Mutual Fund etc. Inventors’ interests were safeguarded by SEBI and the Government offered tax benefits to the investors in order to encourage them.Phase III. 2. Simultaneously. ex: of which are acquisition of schemes of Alliance Mutual Fund by Birla Sun Life. Phase V. Phase IV. The mobilization of funds and the number of players operating in the industry reached new heights as investors started showing more interest in mutual funds.1993-96 The permission given to private sector funds including foreign fund management companies (most of them entering through joint ventures with Indian promoters) to enter the mutal fund industry in 1993. Private funds introduced innovative products. The Specified Undertaking. UTI was reorganized into two parts: 1. . Various Investor Awareness Programmes were launched during this phase.1996-2004 The mutual fund industry witnessed robust growth and stricter regulation from the SEBI after the year 1996. The primary objective behind this was to bring all mutual fund players on the same level. Emergence of Private Sector Funds . SEBI (Mutual Funds) Regulations. about 11 private sector funds had launched their schemes. both by SEBI and AMFI. In February 2003. Growth and SEBI Regulation . The Union Budget in 1999 exempted all dividend incomes in the hands of investors from income tax. Sun F&C Mutual Fund and PNB Mutual Fund by Principal Mutual Fund. The UTI Mutual Fund.2004 Onwards The industry has also witnessed several mergers and acquisitions recently. provided a wide range of choice to investors and more competition in the industry. investment techniques and investor-servicing technology. with an objective to educate investors and make them informed about the mutual fund industry. more international mutual fund players have entered India like Fidelity. the UTI Act was repealed and UTI was stripped of its Special legal status as a trust formed by an Act of Parliament. 1996 was introduced by SEBI that set uniform standards for all mutual funds in India. This is a continuing phase of growth of the industry through consolidation and entry of new international and private sector players.
They monitor the performance and compliance of SEBI Regulations by the mutual fund. which has sponsor.e. who is registered with SEBI. . The trustees of the mutual fund hold its property for the benefit of the unit holders. The trustees are vested with the general power of superintendence and direction over AMC. Asset Management Company (AMC) approved by SEBI manages the funds by making investments in various types of securities. Also.HOW IS A MUTUAL FUND SET UP? A mutual fund is set up in the form of a trust. All mutual funds are required to be registered with SEBI before they launch any scheme. holds the securities of various schemes of the fund in its custody. asset management company (AMC) and custodian. The trust is established by a sponsor or more than one sponsor who is like promoter of a company. they should not be associated with the sponsors. Custodian. SEBI Regulations require that at least two thirds of the directors of trustee company or board of trustees must be independent i. 50% of the directors of AMC must be independent. trustees.
TYPES OF MUTUAL FUNDS SCHEMES IN INDIA:- .
and the investors may choose an option depending on their preferences. Such schemes normally invest a major part of their corpus in equities. capital appreciation.e.Open-ended Fund/ Scheme An open-ended fund or scheme is one that is available for subscription and repurchase on a continuous basis. In order to provide an exit route to the investors. 5-7 years. The key feature of open-end schemes is liquidity. Such funds have comparatively high risks. either repurchase facility or through listing on stock exchanges. Close-ended Fund/ Scheme A close-ended fund or scheme has a stipulated maturity period e. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor i. etc. The fund is open for subscription only during a specified period at the time of launch of the scheme.g. Investors can conveniently buy and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis. Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time.term. some close-ended funds give an option of selling back the units to the mutual fund through periodic repurchase at NAV related prices. These schemes do not have a fixed maturity period. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where the units are listed. These schemes provide different options to the investors like dividend option. The investors must indicate the option in the application form. The mutual funds also allow the investors to change the options at a later date. . These mutual funds schemes disclose NAV generally on weekly basis. Growth / Equity Oriented Scheme The aim of growth funds is to provide capital appreciation over the medium to long.
opportunities of capital appreciation are also limited in such funds. Such schemes generally invest in fixed income securities such as bonds. These are appropriate for investors looking for moderate growth.Income / Debt Oriented Scheme The aim of income funds is to provide regular and steady income to investors. NAVs of such funds are likely to increase in the short run and vice versa. preservation of capital and moderate income. Balanced Fund The aim of balanced funds is to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. However. etc. Returns on these schemes fluctuate much less compared to other funds. government securities. These funds are not affected because of fluctuations in equity markets. NAVs of such funds are likely to be less volatile compared to pure equity funds. These schemes invest exclusively in safer short-term instruments such as treasury bills. Government securities and money market instruments. However. commercial paper and inter-bank call money. These funds are appropriate for corporate and individual investors as a means to park their surplus funds for short periods. They generally invest 40-60% in equity and debt instruments. long term investors may not bother about these fluctuations. Such funds are less risky compared to equity schemes. corporate debentures. certificates of deposit. However. If the interest rates fall. . The NAVs of such funds are affected because of change in interest rates in the country. Money Market or Liquid Fund These funds are also income funds and their aim is to provide easy liquidity. These funds are also affected because of fluctuations in share prices in the stock markets.
Government securities have no default risk. NAVs of these schemes also fluctuate due to change in interest rates and other economic factors as is the case with income or debt oriented schemes. Funds will also give you a choice either to receive a check for distributions or to reinvest the earnings and get more shares. Index Funds Index Funds replicate the portfolio of a particular index such as the BSE Sensitive index. Necessary disclosures in this regard are made in the offer document of the mutual fund scheme. These schemes invest in the securities in the same weightage comprising of an index. though not exactly by the same percentage due to some factors known as "tracking error" in technical terms. TYPES OF RETURN: There are three ways. 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.Gilt Fund These funds invest exclusively in government securities. . • If fund holdings increase in price but are not sold by the fund manager. NAVs of such schemes would rise or fall in accordance with the rise or fall in the index.You can then sell your mutual fund shares for a profit. the fund has a capital gain. Most funds also pass on these gains to investors in a distribution. S&P NSE 50 index (Nifty). etc. where the total returns provided by mutual funds can be enjoyed by investors: • Income is earned from dividend on stocks and interest on bonds. the fund’s share increase in price.
the post offices and banks also distribute the units of mutual funds.HOW TO INVEST IN A MUTUAL FUND:Mutual funds normally come out with an advertisement in newspapers publishing the date of launch of the new schemes. On the other hand they must consider the track record of the mutual fund and should take objective decisions. the investors may please note that the mutual funds schemes being marketed by banks and post offices should not be taken as their own schemes and no assurance of returns is given by them. . Forms can be deposited with mutual funds through the agents and distributors who provide such services. Investors can also contact the agents and distributors of mutual funds who are spread all over the country for necessary information and application forms. Investors should not be carried away by commission/gifts given by agents/distributors for investing in a particular scheme. Now a days. The only role of banks and post offices is to help in distribution of mutual funds schemes to the investors. However.
the registration certificate is issued subject to the payment of registration fees of Rs. setting up a trustee company/board of trustees comprising two. having net profit in three out of the last five years and possessing the general reputation of fairness and integrity in all business transactions. it is required to complete the remaining formalities for setting up a mutual fund. The application is examined and once the sponsor satisfies certain conditions such as being in the financial services business and possessing positive net worth for the last five years. These include inter alia.thirds independent trustees. Upon satisfying these conditions. incorporating the asset management company (AMC).PROCEDURE FOR REGISTERING A MUTUAL FUND WITH SEBI:An applicant proposing to sponsor a mutual fund in India must submit an application in Form A along with a fee of Rs. . contributing to at least 40% of the net worth of the AMC and appointing a custodian.25.25. executing the trust deed and investment management agreement.00 lacs.000.
also called front end load. . 4. 3. 2.MUTUAL FUNDS. NAV: Net Asset Value is the market value of the asset of the scheme minus its liabilities. SALE PRICE: is the price you pay when you invet in a scheme. BACK END LOAD: is a charge collected by a scheme when it buys back the units from the unit holders.[terms] 1. 5. The per unit NAV is the net asset value of the scheme divided by the no. of the units outstanding on the valuation date. SALES LOAD: is a charge collected by a scheme when it sells the units. REPURCHASE PRICE: is the price at which a close ended schemes repurchase their units and close ended schemes redeem their units on maturity. It may include a sales load. also called offer price.
RESEARCH METHODOLOGY NEED FOR THE STUDY: The main purpose of doing this project was to know about mutual fund and its functioning. investment METHODOLOGY: To achieve the objective of studying the mutual funds data has been collected. etc. We analyzed the top 5 mutual funds in India. growth and future prospects. • To study some of the mutual fund schemes and analyse them. SCOPE OF THE STUDY: The scope is limited to some prominent mutual funds in the mutual fund industry. books. • To discuss about the market trends of Mutual Fund investment. OBJECTIVE: • To give a brief idea about the benefits available from Mutual Fund • To give an idea of the types of schemes available. journals. • The lack of information sources for the analysis part. Research methodology carried for this study is: 1. Limitations • The time constraint was one of the major problems. • The study is limited to the different schemes available under the mutual funds selected. This helps to know in details about mutual fund industry right from its inception stage. . Secondary The secondary information is mostly taken from websites. It also helps in understanding different schemes of mutual funds.
OBJECTIVE: Aims to achieve long term growth of capital at relatively moderate levels of risk through a diversified research based investment approach.1995. BIRLA SUNLIFE MUTUAL FUND BIRLA SUNLIFE ADVANTAGE FUND-GROWTH BIRLA SUNLIFE ADVANTAGE FUND is a diversified equity fund enabling investors to capitalize on the immense growth opportunities provided by the stock market while at the same time minimizing the risk.TOP FIVE MUTUAL FUNDS: 1.44 as on dec 30. Launched in feb 24. FUND FEATURES: Type of scheme OPEN ENDED Nature EQUITY Option GROWTH Inception date FEB 24-1995 Face Value(rs/unit) 10 Fund size in (rs crore) 405.5% .09 Minimum investment(rs) 5000/Purchase redemption Daily Nav Daily Entry load 0% Exit load If redeemed between 0 days to 7 days exit load is 0. the fund is an open ended growth scheme with a LARGE CAP theme.
40 .2010 150.tower 1.senapati bapatmarg.96/A-D. Lakshmi Bhavan 609.41 77.Mutual fund Birla sun life mutual fund Ahura centre.18 2.76 as on dec.22 22.90 Since inception 20.55 as on feb.01 as on mar.2009 66. One India bulls centre .04 5 year 18. 17thflr 841. Elphinstone road Mumbai-400013 Registrar: Computer Age Management Services Private Limited A&B.2nd floor.andheri(E) Mumbai Tel:-56928000 Asset management company Birla Sun Life Asset Management Company Ltd.A.10 3 year 6. Mahakali caves road.2009 RISK AND RETURN Scheme performance as on dec.2009 1 month 3 month 6 month 1 year -1. Anna salai Chennai NAV Latest NAV 52 week high 52 week low 140.
62 DEBT 0.0 CASH & EQUIVALENT 3.ASSET ALLOCATION: EQUITY 96.38 EQUITY DEBT CASH & EQUIVALENT 2. FRANKLIN ASIAN EQUITY FUND – GROWTH .
FUND FEATURES: Type of scheme Nature Option Inception date Face value(rs.Ltd Wockhardt Towers.-67519100 Asset Management Company Franklin Templeton Asset Management(India)Pvt.) Purchase redemption NAV Entry load Exit load Open-ended Equity Growth Jan 16’2008 10 416.OBJECTIVE: An open-end diversified equity fund that seeks to provide medium to long term appreciation through investments primarily in Asian companies/Sectors (excluding Japan) with long term potential across market capitalization. Bandra Kurla Complex Mumbai Tel./unit) Fund size(rs.45 as on dec’2009 5000/Daily Daily 0% If redeemed between 0 Yr to 1 yr exit load is 1% MUTUAL FUNDS Franklin Templeton Mutual Fund Level 4. Bandra(East) Mumbai Tel. Wockhardt Towers Bandra Kurla Complex.-67519100 . 4 floor./crore) Minimum investment(rs.
7 3rd cross street.Registrar Franklin Templeton Asset Management(India)Pvt.32 ASSET ALLOCATION EQUITY DEBT 95.57 9.6 as per feb’2010 10. no.23 as on mar 9’2009 3 year NA 5 year NA Since inception 0. Adyar Chennai Tel.48 EQUITY DEBT CASH & EQUIVALENT .52 0.61 -0.0 CASH & EQUIVALENT 4.54 17.29 as per dec’2009 6.28 46.-24407000 NAV Latest NAV 52 week high 52 week low RISK AND RETURN Scheme performances as on dec’ 2009 1month 3month 6month 1 year -0.Ltd Franklin Templeton centre.
1st floor.-39827999 Asset management company ING investment management(India) Pvt Ltd 601/602. FUND FEATURES: Type of scheme Nature Option Inception date Face value(rs/unit) Fund size in (rs/crore) Minimum investment(rs) Purchase redemption NAV Entry load Exit load Open. Road .S.2. C. ING CORE EQUITY FUND – GROWTH OBJECTIVE: Seeks to provide long term capital appreciation by investing predominantly in a portfolio of high quality equity and equity related securities. CST road. “Windsor”.2009 5000/Daily Daily 0% If redeemed between 0 Days to 365 days exit Load is 1% MUTUAL FUND ING Mutual Fund 101 Winsor.1999 10 58. Santacruz E Mumbai Tel. Santacruz E Mumbai-400098 REGISTRAR .ended Equity Growth May 6. Kalina.44 as on dec.T.
51 21.34 33.09 3.48 as on mar 9’2009 3 year 7.74 5 year 21.14 as per feb’2010 33.51 Since inception 11. Lakhsmi Bhavan 609.02 EQUITY DEBT CASH & EQUIVALENT .98 0.99 ASSET ALLOCATION EQUITY DEBT 92.Anna Salai Chennai NAV Latest NAV 52 week high 52 week low RISK AND RETURN Scheme performances as on dec’ 2009 1month 3month 6month 1 year 1.Computer Age Management Services Private Limited A&B.97 69.0 CASH & EQUIVALENT 7.97 as per dec’2009 16.
Fort.E FUND.GROWTH OBJECTIVE: The investment objective of the scheme is to generate long term capital growth from an actively managed portfolio of equity and equity related securities including equity derivatives. 5th floor Charnjit Rai Marg.2009 5000/Daily Daily 0% If redeemed between 0 Days to 365 days exit Load is 1% MUTUAL FUND Morgan Stanley Mutual Fund Forbes Building . 2nd floor. Mumbai-400001 Tel.C.67 as on dec.201..ended Equity Growth Apr3. Prescott street. FUND FEATURES: Type of scheme Nature Option Inception date Face value(rs/unit) Fund size in (rs/crore) Minimum investment(rs) Purchase redemption NAV Entry load Exit load Open. Mumbai Tel.40779226 .Ltd Office No.-22097045 Asset Management Company Morgan Stanley Asset Management(1) Pvt.2008 10 131. MORGAN STANLEY A.4. DBS House.
49 93.53 11.05 37.Registrar Karvy Computershare Pvt.85 as per dec’2009 5.09 ASSET ALLOCATION EQUITY DEBT 94. 21. Banjara hills Hydrabad NAV Latest NAV 52 week high 52 week low RISK AND RETURN Scheme performances as on dec’ 2009 1month 3month 6month 1 year 1.Ltd.94 0.84 12.Avenue 4.1.0 CASH & EQUIVALENT 5.29 as on mar 9’2009 3 year NA 5 year NA Since inception 15.06 EQUITY DEBT CASH & EQUIVALENT .72 as per feb’2010 12. Street no.
FUND FEATURES: Type of scheme Nature Option Inception date Face value(rs/unit) Fund size in (rs/crore) Minimum investment(rs) Purchase redemption NAV Entry load Exit load Open. Trade World. RELIANCE MUTUAL FUND OBJECTIVE: The primary investment objective of the scheme is to seek to generate capital appreciation & provide long-term growth opportunities by investing in a portfolio constituted or equity & equity related securities of top 100 companies by market capitalization and of companies which are available in the derivatives segment from time to time and the secondary objective is to generate consistent returns by investing in debt and money market securities. Tower 1 841.-30414800 . 11th & 12th floor.5.B. Senapati bapat marg.ended Equity Growth Mar.28.wing 7th floor. One India bull centre.11 as on dec.2006 10 2254. Lower parel(west) Mumbai Tel.-30414800 ASSET MANAGEMENT COMPANY Reliance Capital Asset Management Ltd.2009 5000/Daily Daily 0% If redeemed between 0 Days to 365 days exit Load is 1% MUTUAL FUND Reliance mutual fund Kamla mills compound. Senapati bapat marg Mumbai Tel.
27 14.64 5 year NA Since inception 11.1.Avenue 4.91 0.0 CASH & EQUIVALENT 12.20 0.80 as per feb.2010 15.68 49.24 as per dec.Ltd.80 EQUITY DEBT CASH & EQUIVALENT .09 ASSET ALLOCATION EQUITY DEBT 87. 21.2009 3 year 8.21 as on mar 9.2009 8. Street no. Banjara hills Hydrabad NAV Latest NAV 52 week high 52 week low RISK AND RETURN Scheme performances as on dec’ 2009 1month 3month 6month 1 year -0.Registrar Karvy Computershare Pvt.35 16.
All funds are showing positive growth but BIRLA SUNLIFE is showing negative growth. Reliance mutual fund has less fluctuation in NAV. c. Minimum requirement of fund for investment in any of the scheme is Rs. Exit load of BIRLA SUNLIFE ADVANTAGE fund is very low 0.28 21.34 93.32 11.99 15.9 NA 21. NAV of Birla Sunlife fund has much fluctuation.5% .05 0.27 3year 6.41 17.04 NA 7.35 22.51 11.09 11.61 1. NAV is calculated on daily basis.53 -0.09 1. b.84 49.68 1year 77. h. f.64 5year 18. growth equity funds.FINDINGS a.74 NA 8.40 0.10 46.54 3.22 -0. Fund size of RELIANCE MUTUAL FUND is maximum.18 -0.5000/d. All funds are open ended. e.97 37.91 2.49 16. On the basis of NAV: g.57 69. On the basis of risk and return: Company 1 month 3month 6month Birla sunlife advantage Franklin Asian Equity ING core equity fund Morgan Stanley A Reliance Equity Fund -1.09 .51 NA NA Since inception 20.
The 2nd good performer is BIRLA SUNLIFE ADVANTAGE MUTUAL FUND.84% performance. e. f. For the initial time period of 3 months the lowest performer is Franklin asian equity -0.18. d. The period of 1st year is of Morgan Stanley with 93.05%.54. Franklin asian equity fund is the lowest performer of all. si nc e in ce pt io n on th 3 1 ye ar . g.53. c. For the 1st month performance of Birla sunlife advantage fund is much lower -1.100 80 60 40 20 0 m on th 6 m on th Birla sunlife advantag Franklin asian equity ING core equity fund Morgan stanley Reliance equity fund -20 1m 3 a. Since inception the best performer of the above mutual funds is Birla sunlife mutual advantage. Morgan Stanley is still performing well as 11. From the graph it is clear that the best performer of mutual fund MORGAN STANLEY. the best performance is of Morgan Stanley 1. b.
0 12.94 0.62 95.02 Morgan Stanley 94.0 0. Mutual fund invests most of their investments in EQUITY.On the basis of Asset allocation: Company Birla Franklin sunlife asian advantage equity Equity 96.0 7. b. ADVANTAGES OF MUTUAL FUND : . There is no investment in DEBT.0 Cash & 3. c. Investment in cash & equivalent is very low.80 Equity Debt Cash & Equivalent Birla Franklin ING core Morgan Reliance sunlife asian equity fund stanley equity fund advantage equity a.48 Equivalent 100 80 60 40 20 0 ING core equity fund 92.37 4.52 Debt 0.06 Reliance equity fund 87.98 0.20 0.0 5.
Mutual Funds invest in a well-diversified portfolio of securities which enables investor to hold a diversified investment portfolio (whether the amount of investment is big or small). These benefits are passed on to the investors. 7. Choice of schemes. Disadvantage of Investing Through Mutual Funds: .Mutual Fund industry is part of a well-regulated investment environment where all funds are registered with SEBI and complete transparency is forced. Option of systematic (at regular intervals) investment and withdrawal is also offered to the investors in most open-end schemes.Due to the economies of scale (benefits of larger volumes). Professional management.Investors acquire a diversified portfolio of securities even with a small investment in a Mutual Fund. Investors can switch their holdings from a debt scheme to an equity scheme and vice-versa.1. Less risk. 8. The risk in a diversified portfolio is lesser than investing in merely 2 or 3 securities. 2. Flexibility. Low transaction costs. mutual funds pay lesser transaction costs.Fund manager undergoes through various research works and has better investment management skills which ensure higher returns to the investor than what he can manage on his own. These schemes further have different plans/options. Liquidity-An investor may not be able to sell some of the shares held by him very easily and quickly. 6. All material facts are disclosed to investors as required by the regulator. 9. 5. 4. whereas units of a mutual fund are far more liquid. Transparency.Funds provide investors with updated information pertaining to the markets and the schemes. Safety.Mutual funds provide investors with various schemes with different investment objectives. Portfolio diversification.Investors also benefit from the convenience and flexibility offered by Mutual Funds. Investors have the option of investing in a scheme having a correlation between its investment objectives and their own financial goals. 3.
Many investors find it difficult to select one option from the plethora of funds/schemes/plans available.1. For this. 2. CONCLUSION: .Investor has to pay investment management fees and fund distribution costs as a percentage of the value of his investments (as long as he holds the units). they may have to take advice from financial planners in order to invest in the right fund to achieve their objectives. Investors have no right to interfere in the decision making process of a fund manager. Costs Control Not in the Hands of an Investor. No Customized Portfolios. 3.The portfolio of securities in which a fund invests is a decision taken by the fund manager. irrespective of the performance of the fund. Difficulty in Selecting a Suitable Fund Scheme. which some investors find as a constraint in achieving their financial objectives.
1. Mutual fund ads can be very deceiving. etc. and the inability of management to guarantee a superior return. investing strategy. The disadvantages of mutuals are high costs . 9. 6. The advantages of mutuals are professional management. region. A mutual fund brings together a group of people and invests their money in stocks. You can classify funds based on asset class. possible tax consequences. Costs can be broken down into ongoing fees and transaction fees. bonds. Mutual funds are easy to buy and sell. many types of mutual funds. economies sale. 7. and other securities. The biggest problems with mutual funds are their costs and fees. 2. There are many. simplicity and liquidity. 3. LIMITATIONS OF THE STUDY: .over-diversification. Mutual funds have lots of costs. You can either buy them directly from the fund company or through a third party. 8. 5. 4. diversification.
Not possible to get whole information because of their business secret. 2. The study is restricted to secondary data only.1. The time is the main constraints so limited period of time is spend on this study. BIBLIOGRAPHY: . 3.
1.com . www.birlasunlifemutualfund. www.morganstanleymutualfunds.Ingcorefunds.com 2.com 6. www.com 4. www.Mutualfundindia. www.com 3.com 5.franklinfunds. www.reliancemutualfund.
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