COMMON STROKES FOR VARIOUS FOLKS A STUDY ON MUTUAL FUNDS

Submitted in partial fulfillment of PGDM

PGDM Batch 2011-13

Submitted To: Dr. M. MADANA MOHAN

Submitted By: P.PREM KUMAR P.G.D.M (7071) Section- B Batch- 2011-13

COMMON STROKES FOR VARIOUS FOLKS A STUDY ON MUTUAL FUNDS

Submitted in partial fulfillment of PGDM

PGDM BATCH 2011-13

Submitted By P.PREM KUMAR

Faculty Guide

Director Academics

Declaration

I P.PREM KUMAR hereby declare that the project titled COMMON STROKES FOR VARIOUS FOLKS A STUDY ON MUTUAL FUNDS is an original work carried out under the guidance of Dr. M.MADANA MOHAN. The report submitted is a bonafide work of my own efforts and has not been submitted to any institute or published before.

Signature of the student

P.PREM KUMAR

Date: Place:

CERTIFICATE

TO WHOMESOEVER IT MAY CONCERN

This is to certify that Mr. P.PREM KUMAR of PGDM has successfully completed Summer Training Program for a period of 45 days with FUTURE CAPITAL SECURITIES LTD. from 30th APRIL 2012 to 14th JUNE 2012.

As per our assessment he is hard working and his performance has been good during the training program.

We wish him all the success for his future.

Signature:

NAVEEN KUMAR DHONTHI MANAGER Date: Place:

Faculty Guide Certificate

I Prof. M.MADANA MOHAN certify Mr. P.PREM KUMAR that the work done and the training undertaken by him is genuine to the best of my knowledge and acceptable.

Signature

Prof. M.MADANA MOHAN

Date:

Acknowledgement
I extent my sincere gratitude to Director IRFAN UAL HAQ, VISHWA VISHWANI SCHOOL OF BUSINESS I render my whole hearted thanks to Mr. NAVEEN KUMAR DHONTHI, Branch Manager of FUTURE CAPITAL SECURITIES LTD, for giving me an opportunity to do my project in their esteem organization. I extent my whole hearted thanks to Mr. SRINIVAS for valuable inputs given during my project. I am extremely indebted to MR. BIPIN & MR. MUKESH for enlighten us about the stock market and off line trading. I thank my Faculty Guide Dr. M.MADANA MOHAN for continuous support for pursuing my project. I render my whole hearted thanks to all the other respected faculties of the management department, for their assistance and co-operation given to me in regard to this work. I thank my parents and other family members for their valuable and motivational support in completion of this project. I also take this opportunity to thank all my friends and well wishers for their support in helping me carrying out my project. Signature of the student

P.PREM KUMAR

Date: Place:
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Annexure VI

INDEX Content INTRODUCTION COMPANY PROFILE INDUSTRY PROFILE LITERATURE REVIEW

Page no.

Chapter no. Chapter 1 Chapter 2

Chapter 3 Chapter 4

RESEARCH METHOLOGY DATA COLLECTION

ANALYSIS & INTERPRETATION

Chapter 5

FINDINGS RECOMMENDATIONS CONCLUSION

Bibliography

BOOKS/ARTICLES REFERRED

WEBSITES REFERRED

LIST OF TABLES
SR.NO TABLE 1.1 TABLE 2.1 TABLE 2.2 TABLE 2.3 TABLE 2.4 TABLE 3.1 TABLE 3.2 TABLE 3.3 TABLE 3.4 TABLE 3.5 TABLE 3.6 TABLE 3.7 TABLE 3.8 TABLE 3.9 TABLE 3.10 TABLE 4.1 TABLE 4.2 TABLE 4.3 TABLE 4.4 TABLE 4.5 TABLE NAME AND ADDRESSES OF SEBI REGISTERED MUTUAL FUNDS PROS AND CONS OF THE INVESTMENTS FUNDS ALLOCATION DIFFERENCES BETWEEN OPEN ENDED & CLOSED ENDED FUNDS INTERNATIONAL FUNDS: KEY INFORMATION :AXIS BANK SCHEME HIGHLIGHTS INVESTMENT PATTERN ABSOLUTE RETURNS ABSOLUTE ANNUALIZED RETURNS ANALYSIS TOP HOLDINGS SECTOR ALLOCATION (31ST MAY 12) ASSET ALLOCATION (%) CONCENTRATION RETURNS (NAV) KEY INFORMATION : I.C.I.C.I BANK SCHEME HIGHLIGHTS ABSOLUTE RETURNS TOP HOLDINGS SECTOR ALLOCATION (31ST MAY 12) PAGE NO.

TABLE 4.6 TABLE 4.7 TABLE 4.8 TABLE 5.1 TABLE 5.2 TABLE 5.3 TABLE 5.4 TABLE 5.5 TABLE 5.6 TABLE 5.7 TABLE 5.8 TABLE 6.1 TABLE 6.2 TABLE 6.3 TABLE 6.4 TABLE 6.5 TABLE 6.6 TABLE 6.7 TABLE 6.8 TABLE 6.9 TABLE 7.1

ASSET ALLOCATION (%) CONCENTRATION RETURNS (NAV) KEY INFORMATION : RELIANCE CAPITAL SCHEME HIGHLIGHTS ABSOLUTE RETURNS (%) TOP HOLDINGS SECTOR ALLOCATION (31ST MAY 12) ASSET ALLOCATION (%) CONCENTRATION RETURNS (NAV) KEY INFORMATION : FRANKLIN TEMPLETON SCHEME HIGHLIGHTS ABSOLUTE RETURNS (%) ABSOLUTE ANNUALIZED RETURNS ANALYSIS TOP HOLDINGS SECTOR ALLOCATION (31ST MAY 12) ASSET ALLOCATION (%) CONCENTRATION RETURNS (NAV) NAVS OF VARIOUS FUND SCHEMES

LIST OF CHARTS
SR.NO
CHART 1.1 CHART 1.2 CHART 1.3 CHART 1.4 CHART2.1 CHART 2.2 CHART 3.1 CHART 3.2 CHART 3.3 CHART 3.4 CHART 4.1 CHART 4.2 CHART 4.3 CHART 4.4 CHART 5.1 CHART 5.2 CHART 5.3 CHART 5.4 CHART 6.1 CHART 6.2 CHART 6.3 CHART 6.4

CHART
EQUITY BROKING TURNOVER YEAR WISE Y-O-Y GROWTH EQUITY BROKERAGE TURNOVER EQUITY BROKERAGE TURNOVER QUARTER WISE TOTAL NUMBER OF TRADES CASH SEGMENT AGGRESSIVE PLAN CONSERVATIVE PLAN SHOWING ABSOLUTE ANNUALIZED RETURNS SHOWING PORTFOLIO AND ASSEST % SHOWING SECTOR ALLOCATION SHOWING RETURNS (NAV) SHOWING ABSOLUTE ANNUALIZED RETURNS SHOWING PORTFOLIO AND ASSEST % SHOWING SECTOR ALLOCATION SHOWING RETURNS (NAV) SHOWING ABSOLUTE ANNUALIZED RETURNS SHOWING PORTFOLIO AND ASSEST % SHOWING SECTOR ALLOCATION SHOWING RETURNS (NAV) SHOWING ABSOLUTE ANNUALIZED RETURNS SHOWING PORTFOLIO AND ASSEST % SHOWING SECTOR ALLOCATION SHOWING RETURNS (NAV)

PAGE NO.

10

CHAPTER 1 INTRODUCTION

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MUTUAL FUNDS

INTRODUCTION:A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests it in stocks, bonds, short-term money market instruments and other securities. Mutual funds have a fund manager who invests the money on behalf of the investors by buying / selling stocks, bonds etc. Currently, the worldwide value of all mutual funds totals more than $US 26 trillion. There are various investment avenues available to an investor such as real estate, bank deposits, post office deposits, shares, debentures, bonds etc. A mutual fund is one more type of investment available to investors. There are many reasons why investors prefer mutual funds. Buying shares directly from the market is one way of investing. But this requires spending time to find out the performance of the company whose share is being purchased, understanding the future business prospects of the company, finding out the track record of the promoters and the dividend, bonus issue history of the company etc. An informed investor needs to do research before investing. However, many investors find it cumbersome and time consuming to pore over so much of information, get access to so much of details before investing in the shares. Investors therefore prefer the mutual fund route. They invest in a mutual fund scheme which in turn takes the responsibility of investing in stocks and shares after due analysis and research. The investor need not bother with researching hundreds of stocks. It leaves it to the mutual fund and its professional fund management team. Another reason why investors prefer mutual funds is because mutual funds offer diversification. An investors money is invested by the mutual fund in a variety of shares, bonds and other securities thus diversifying the investors portfolio across different companies and sectors. This diversification helps in reducing the overall risk of the portfolio. It is also less expensive to invest in a mutual fund since the minimum investment amount in mutual fund units is fairly low (Rs. 500 or so). With Rs. 500 an investor may be able to buy only a few stocks and not get the desired diversification. These are some of the reasons why mutual funds have gained in popularity over the

12

years. Indians have been traditionally savers and invested money in traditional savings instruments such as bank deposits. Against this background, if we 6 look at approximately Rs. 7 lakh crores1 which Indian Mutual Funds are managing, then it is no mean an achievement. A country traditionally putting money in safe, risk-free investments like Bank FDs, Post Office and Life Insurance, has started to invest in stocks, bonds and shares thanks to the mutual fund industry. However, there is still a lot to be done. The Rs. 7 Lakh crores stated above includes investments by the corporate sector as well. Going by various reports, not more than 5% of household savings are channelized into the markets, either directly or through the mutual fund route. Not all parts of the country are contributing equally into the mutual fund corpus. 8 cities account for over 60% of the total assets under management in mutual funds. These are issues which need to be addressed jointly by all concerned with the mutual fund industry. Market dynamics are making industry players to look at smaller cities to increase penetration. Competition is ensuring that costs incurred in managing the funds are kept low and fund houses are trying to give more value for money by increasing operational efficiencies and cutting expenses. As of today there are around 40 Mutual Funds in the country. Together they offer around 1051 schemes2 to the investor. Many more mutual funds are expected to enter India in the next few years.

All these developments will lead to far more participation by the retail investor and ample of job opportunities for young Indians in the mutual fund industry. This module is designed to meet the requirements of both the investor as well as the industry professionals, mainly those proposing to enter the mutual fund industry and therefore require a foundation in the subject. Investors need to understand the nuances of mutual funds, the workings of various schemes before they invest since their money is being invested in risky assets like stocks/ bonds (bonds also carry risk). The language of the module is kept simple.

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Objectives of the study:

1. To examine the benefits available for Mutual Fund investment. 2. To examine the market trends of the Mutual fund schemes and analyze them. 3. To analyze which combination will be better from investor point of view. 4. To evaluate the benefits of investing in Mutual Funds 5. To examine the performance of Equity fund scheme of AXIS BANK, ICICI BANK, FRANKLIN TEMPLETON and RELIANCE mutual funds.

Scope of the Study:

The study is taken up from 30-04-2012 to 14-06-2012 that is a quarter periods in which an analysis of NAV and returns of 4 funds are undertaken on DAILY basis on every Monday of the period of the study. The study covers NAV, Portfolios, Asset Allocation and Returns. It is analysis for the period of 7 Weeks on the basis of trend movement of NAV and returns. The project duration is 30-04-2012 TO 14-06-2012.

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CHAPTER 2 COMPANY PROFILE INDUSTRY PROFILE LITERATURE REVIEW

15

Company profile:
Future Capital Securities Ltd. (FCSL)
FCSL is a Member at the National Stock Exchange of India Ltd. (NSE), Bombay Stock Exchange (BSE), MCX Stock Exchange Ltd. (MCX-SX) and is a Depository Participant (DP) of CDSL. It presently offers Retail Broking services in Equities & Derivatives, Currency Derivatives, Depository services, investments into Mutual Funds, IPOs, Bonds, and facilitates all kinds of Retail Loans through its network of Centres spread in 11 States of India. FCSL commenced operations in August 2010. Future Capital Commodities Ltd. (FCCL), subsidiary of FCSL has commenced operations in October 2011 with its Broking & Investment services at the National Spot Exchange Ltd. (NSEL) and FCSLs CDSL DP is empanelled with NSEL to open Investors DP Commodity Accounts. Further, FCCL has recently launched broking operations in the Commodities segment at MCX and NCDEX. FCSL is also in the process of launching in the immediate future, an all-product, transaction-cum-service portal enabling its clients to seamlessly transact across products with DP and multiple Bank gateways integrated. We are offering the entire range of financial products & services through FCCL, FCSL and our parent, FCH Ltd. Retail Broking services across all the premier Stock exchanges & Commodity exchanges, Loan against Shares, Loan against Gold, Loan against Property, Auto Loans, Private Wealth Management services, Property services, Insurance, Mutual Funds & Bonds are available through the FCSL centres. FCSL is looking keenly at the Business Associates (Sub-brokers/Authorized persons/IFAs) channel to expand its reach pan-India.

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INDUSTRY PROFILE
HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY
The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the government of India and Reserve Bank .The history of mutual funds in India can be broadly divided into four distinct phases.

FIRST PHASE-1964-87
An act of parliament establishment unit trust of India (UTI) on 1963.It was set up by the Reserve bank of India and functioned under the Regulatory and administrative control of the Reserve bank of India. In 1978 UTI was de-linked from the RBI and the industrial development Bank of India (IDBI)) took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was unit scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of assets under management.

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

1987 marked the entry of non-UTI, public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBI Mutual Fund was the first non-UTI Mutual Fund established in June 1987 followed by Can bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (June 90). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990. At the end of 1993, the mutual fund industry had assets under management of Rs.47, 004 crores.

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

With the entry of private sector funds in 1993, a new era started in the Indian mutual fund industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in which the first Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993.The 1993 SEBI (Mutual fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996.The industry now functions under the SEBI (Mutual Fund) Regulations in 1996.The number of mutual fund houses went on increasing, with many foreign mutual funds setting up funds in India and also the industry gas witnessed several mergers and acquisitions. As at the end of January 2003, there were 33 mutual funds with total assets of Rs.1, 21825 crores. The Unit Trust of India with Rs.44, 541 crores of assets under management was way ahead of other mutual funds.

FOURTH PHASE SINCE FEBRUARY 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entitles. One is the specified undertaking of the unit Trust of India with assets under management of Rs.29,835 crores as at the end of January 2003, representing broadly, the assets of Us 64 scheme, assured return and certain other schemes. The specified undertaking of Unit Trust of India, functioning under an administrator and under the rules framed by Government of India and does not come under the purview of the Mutual Fund Regulations. The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It s registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000 crores of assets under Management and with he setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking place among different private sector funds, the mutual fund industry has entered its current phase of consolidation and growth. As at the end of October 31, 2003, there were 31 funds, which manage assets of Rs.1, 26,726 crores under 389 schemes.

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RECENT TRENDS IN THE MUTUAL FUND INDUSTRY

The most important trend in the mutual fund industry is the aggressive explosion of the foreign owned mutual funds companies and the decline of the companies floated by nationalized banks and small private sector players. Many nationalized banks got into the mutual funds business in the early nineties and got of to a good start due to the stock market boom prevailing then. Few hired specialized staff and generally chose to transfer staff from parent organizations. The performance of most of the schemes floated by these organizations was not good. Some schemes had offered guaranteed returns and there parent organizations had to bail out these AMCs by paying large amount of money as the difference between the guaranteed and actual returns. The service levels were also very bad. Most of these AMCs have not been able to retain staff, float new schemes etc. And it is doubtful whether, barring a few exceptions, they have serious plans of continuing the activity in a major way. The experience of some of the AMCs floated by the private sector Indian companies was also very similar. They quickly realized that the AMC business is a business, which makes money in the long term and requires deep- pocketed support in the intermediate years. Some have sold out to foreign owned companies, some have merged with others and there is a general restructuring going on. The foreign owned companies have deep pockets and have come here with the expectations of a long haul. They can be credited with the introduction of many new practices such as new product innovation, sharp improvement in the service standards and disclosure, usage of technology, broker education and support etc. In fact, they have forced the industry to upgrade itself and service levels of organizations like UTI have improved dramatically in the in the last few years in response to the competition provided by these.

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Table.1.1 NAME AND ADDRESSES OF SEBI REGISTERED MUTUAL FUNDS

S.No

Name Alliance Capital Mutual Fund, Address for correspondence C/o. AZB & Partners Advocates & Solicitors, Express Towers 23rd Floor, Nariman Point, Mumbai 400 021 AIG Global Investment Group Mutual Fund FCH House, Ground Floor Peninsula Corporate Park

Registration No

Registration Date

1.

MF/021/95/3

30.12.1994

2.

Ganpatrao Kadam Marg Lower Parel Mumbai 400 013 TEL : FAX: 24255100 Axis Mutual Fund, 1st Floor, Axis House, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai 400025

MF/054/07/02

09.02.2007

3.

TEL : 39403300 FAX : 22040130 WEB : www.axismf.com www.axismutual.com Email customerservice@axismf.com Toll Free No : 1800 3000 3300 Baroda Pioneer Mutual Fund

MF/061/09/01

04.09.2009

4.

501, Titanium, 5th floor, Western Express Highway,

MF/018/94/2

21.11.1994

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Goregaon (E), Mumbai 400 063. TEL : 307410000, 42197999 FAX :30741001 WEB : www.barodapioneer.in Email : info@barodapioneer.in Birla Sunlife Mutual Fund One India Bulls Centre, Tower-1, 17th Floor, Jupiter Mills Compound, 5. 841, Senapati Bapat Marg, Elphinstone Road, Mumbai- 400001 TEL : 43568000 FAX : 43568110/8111 WEB : www.birlasunlife.com Bharti AXA Mutual Fund 51, 5th Floor, Kalpataru Synergy, East Wing, Vakola, Santacruz (E), 6. Mumbai 400 055. TEL : 40479000 FAX : 40479001 Web : www.bhartiaxa-im.com Email: info@bhartiaxa-im.com BNP Paribas Mutual Fund 1 North Avenue Maker Maxity Bandra Kurla Complex 7. Mumbai-400 051 Tel- 91 (22) 3370 4000 Fax- 91 (22) 3370 4294 WEB : www.bnpparibasmf.in Email: customercare@bnpparibasmf.in 8. Canara Robeco Mutual Fund Construction House, 4th Floor, MF/004/93/4 19.10.1993 MF/049/04/01 27.05.2004 MF/056/08/01 31.03.2008 MF/020/94/8 23.12.1994

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5, Walchand Hirachand Marg, Ballard Estate, Mumbai 400 001. Tel : 6658 5000 to 5010 Fax 6658 5011 to 5013 WEB : www.canararobeco.com Email : crmf@canararobeco.com CRB Mutual Fund Daruwala Mansion, 3rd Floor, 9. 90 Chandanwadi Cross Lane, Mumbai 400 020. TEL : 2072719/20 FAX : 2096433 Daiwa Mutual Fund, 5th Floor, Harchandrai House, 81, Maharshi Karve Road, 10. Marine Lines, Mumbai 400 002 TEL : 022-66142900 FAX : 022-66100148 WEB : www.daiwa.in Deutsche Mutual Fund 2nd Floor, 222, Kodak House, Dr. D. N. Road, 11. Mumbai 400 001. TEL : 22072211 FAX : 22074411 WEB : http://www.deutschemutual.com Email : deutsche.mutual@db.com DSP BlackRock Mutual Fund, Mafatlal Centre, 10th Floor, 12. Nariman Point, Mumbai 400 021. TEL : 66578000 FAX: 66578181 MF/036/97/7 30.1.1997 MF/047/02/10 28.10.2002 MF/060/09/01 10.02.2009 MF/008/93/5 17.12.1993

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WEB : www.dspblackrock.com Email : service@dspblackrock.com Toll Free No: 1800 345 4499 Edelweiss Mutual Fund 14th Floor, Express Towers, Nariman Point, Mumbai 400 021 13. TEL : 022-22864400 FAX : 022-4097 9970 Email: investor.amc@edelcap.com Website: www.edelweissmf.com Escorts Mutual Fund, 11, Scindia House, Connaught Circus, New Delhi 110 001. TEL : 011-3321654 / 5177 / 3319991 / 14. 3351343 FAX : 011-23761495, 23325177 WEB: www.escortsmutual.com Email : help@escortsmutual.com Mumbai Tel. Nos. TEL : 30947097, 24218162 Franklin Templeton Mutual Fund Level 4, Wockhardt Towers, Bandra Kurla Complex, 15. Bandra (East), Mumbai 400 051 TEL : 6751 9100 FAX : 6649 0622 WEB : www.templetonindia.com Fidelity Mutual Fund 16. 6th floor, Mafatlal Centre, Nariman Point, Mumbai 400 021 MF/050/05/01 17.02.2005 MF/026/96/8 19.2.1996 MF/028/96/4 3.7.1996 MF/057/08/02 30.04.2008

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TEL: Toll Free number 1-600- 121262 Gurgaon : +91 (0124) 509 2104 (Investor Relations Officer's number) Mumbai : + 91 (022) 5655 4000 FAX: Gurgaon : +91 (0124) 509 2100 Mumbai: +91 (022) 5655 4200 Email: investor.line@fidelity.co.in WEB : www.fidelity.co.in Goldman Sachs Mutual Fund Rational House, Appasaheb Marathe Marg, Prabhadevi, 17. Mumbai 400025 TEL : 66169000 FAX : 66279240 Email: gsamindia@gs.com WEB: www.gsam.in HDFC Mutual Fund, Ramon House, 3rd Floor, 169, Backbay Reclamation, 18. Churchgate, Mumbai 400 020. TEL : 22029111 FAX: 22028862 WEB : www.hdfcfund.com HSBC Mutual Fund, 314 D N Road, Fort, 19. Mumbai 400 001. TEL : 66145000 FAX: 40029600 Email : hsbcmf@hsbc.co.in 20. ICICI Securities Fund, ICICI Towers, 7th Floor, MF/043/00/3 28.3.2000 MF/046/02/5 27.5.2002 MF/044/00/6 30.6.2000 MF/058/08/03 26.08.2008

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North Block, Bandra-Kurla Complex, Mumbai 400 051. TEL : 6531414 / 6538988 (D) FAX : 6531063 / 6531178 IIFL Mutual Fund IIFL Centre, 3rd Floor Annex, Kamala City, Senapati Bapat Marg, 21. Lower Parel, Mumbai-400013 Tel : 42499000 Fax : 40609049 Web: indiainfoline.com Indiabulls Mutual Fund One Indiabulls Centre, Tower 2, Basement, Jupiter Mills, Fitwala Road, 22. Near Sai Mandir, Opposite Deepak Talkies, Elphinstone Road, Mumbai 400013 Tel: 30439414 Fax: 39805325 ING Mutual Fund, Unit No. 101, 601/606, 6th Floor, Windsor, Off. C.S.T. Road, 23. Vidyanagari Marg, Kalina, Santacruz (East), Mumbai 400 098 TEL : 022-39827999 Toll Free : 18004255433 FAX : 022-26500248 Email : information@in.ing.com MF/040/99/5 11.2.1999 MF/068/11/3 24.3.2011 MF/067/11/2 23.3.2011

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WEB : www.ingim.co.in ICICI Prudential Mutual Fund 2nd Floor, 302, Block B-2, Nirlon Knowledge Park, Western Express Highway, Mumbai - 400063. 24. Tel No. +9122 42090573 Registered Office : 12th Floor, Narain Manzil, 23, Barakhamba Road, New Delhi 110 001 WEB : www.pruicici.com IDBI Mutual Fund 5th Floor, Mafatlal Centre, Nariman Point, Mumbai 400 021. 25. Tel.: 66442800 Fax: 66442801 E-mail: Krishnamurthy.vijayan@idbimutual.co.in www.idbimutual.co.in IDFC Mutual Fund, One IndiaBulls Centre, 841, Jupiter Mills Compound, Senapati Bapat Marg, 26. Elphinstone Road (West), Mumbai 400 013. TEL : 22621111 FAX : 22693365 Email : investor@idfcmf.com WEB : www.idfcmf.com 27. JM Financial Mutual Fund 502, 5th Floor, A Wing, MF/015/94/8 15.9.1994 MF/042/00/3 13.3.2000 MF/064/10/01 29.3.2010 MF/003/93/6 13.10.1993

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Laxmi Towers, Bandra Kurla Complex, Mumbai - 400051 TEL : 39877777 FAX : 26528377-78 WEB : www.JMFinancialmf.com Email : mktg@jmmutual.com JP Morgan Mutual Fund J.P. Morgan Towers, Off C.S.T. Road, Kalina, Santacruz - East 28. Mumbai 400 098 TEL : 6157 3000 FAX : 6157 4170 WEB : www.jpmorganmf.com Email : india.investors@jpmorgan.com Kotak Mahindra Mutual Fund, Kotak Towers, 6th Floor, Bldg. No. 21, Infinity Park, 29. Gen. A. K. Vaidya Marg, Malad (E), Mumbai 400 097 TEL : 66384444 FAX : 66384455 WEB : www.kotakmutual.com KJMC Mutual Fund, 168, Atlanta, 16th Floor, 30. Nariman Point Mumbai 400 021 TEL : 22885201/22832350 FAX : 22852892 Email : kjmcmutual@kjmcmutual.com 31. LIC Nomura Mutual Fund Industrial Assurance Bldg., MF/012/94/5 9.5.1994 MF/041/99/4 28.4.1999 MF/038/98/1 23.6.1998 MF/053/07/01 08.02.2007

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4th Floor, Opp Churchgate Stn., Mumbai 400 020. TEL : 22851661/22851663 FAX : 22040039 WEB : www.licmutual.com L&T Mutual Fund 309, Trade Centre, 3rd Floor, 32. Bandra Kurla Complex, Bandra (East), Mumbai - 400 051. Morgan Stanley Mutual Fund 19th Floor, One Indiabulls Centre, Tower 2, Jupiter Mils Compound, 33. 841, Senapati Bapat Marg, Elphinstone Road, Mumbai - 400 013. TEL : 61181000 FAX : 61181027 WEB : www.morganstanley.com/indiamf Mirae Asset Mutual Fund Unit 606, 6th Floor, Windsor, Off CST Road, Kalina, Santacruz (E), MUMBAI 400 098 34. TEL : 67800300 FAX : 6725 3942 / 45 Email : customercare@miraeassetmf.co.in WEB : www.miraeassetmf.co.in Motilal Oswal Mutual Fund 81/82, 8th Floor, 35. Bajaj Bhawan, Nariman Point, Mumbai 400 021 Tel: 39804200 36. Peerless Mutual Fund MF/062/09/03 04.12.2009 MF/063/09/04 29.12.2009 MF/055/07/03 30.11.2007 MF/005/93/1 5.11.1993 MF/035/97/9 3.1.1997

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Peerless Mansion, 1 Chowringhee Square, Kolkata-700069 TEL : 033-22435496 FAX : 033-22435339 Pramerica Mutual Fund Nirlon House, 2nd Floor, 37. Dr. Annie Besant Road, Worli, Mumbai- 400025 TEL: 022- 61593000 FAX: 022- 61593100 Principal Mutual Fund Exchange Plaza, 2nd Floor, B Wing, NSE Building, 38. Bandra Kurla Complex, Bandra(East) Mumbai 400051. TEL : 67720555 Quantum Mutual Fund, 505, 5th Floor, Regent Chambers, 39. Nariman Point, Mumbai 400021 TEL : 22830322 FAX : 22854318 WEB : www.quantumamc.com Reliance Mutual Fund One India Bulls Centre, Tower 1, 11th 7 12th Floor, Jupiter Mills 40. Compound, 841 Senapati Bapat Marg, Elphinstone Road, Mumbai 400 001. TEL : 30287168 MF/022/95/1 30.6.1995 MF/051/05/02 02.12.2005 MF/019/94/0 13.12.1994 MF/065/10/02 13.5.2010

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FAX : 30414885 WEB: www.reliancemutual.com Email:customer_care@reliancemutual.c om Religare Mutual Fund 3rd Floor, GYS Infinity, Paranjpe B Scheme, 41. Subhash Road, Vile Parle (East), Mumbai 400 057. TEL : 67310000 FAX : 28371565 Sahara Mutual Fund, 9th Floor, 97-98 Atlanta Building Nariman Point 42. Mumbai 400 021 Tel : 22-6752 0121 27 Fax : 66547855 WEB : www.saharamutual.com Email: saharamutual@saharamutual.com SBI Mutual Fund 191, Maker Towers "E" Cuffe Parade 43. Mumbai 400005 TEL : 22180221-25,27 FAX : 22189663 WEB : www.sbimf.com Shriram Mutual Fund 106, Shiv Chambers, 1stFloor, 44. B Wing Sector - 11, C.B.D.Belapur, Navi Mumbai 400 614. MF/017/94/4 21.11.1994 MF/009/93/3 23.12.1993 MF/030/96/0 1.10.1996 MF/052/06/01 24.07.2006

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TEL : 7901447/8 FAX : 7901449 Email: srmf@roltanet.com Sundaram Mutual Fund, 46, Whites Road, 45. Royapettah, Chennai 600 014. TEL : 044-28543362/28543367 FAX : 044-28543156 Taurus Mutual Fund Ground Floor, AML Centre-1 8 Mahal Industrial Estate Mahakali Caves Road 46. Andheri (E), Mumbai 400093 Tel: 022- 66242700 Fax: 022- 66242722 Website: www.taurusmutualfund.com Email: info@taurusmutualfund.com Tata Mutual Fund, Mafatlal Center, 9th Floor, Nariman Point, 47. Mumbai 400 021. TEL : 66578282 FAX : 22613782 WEB : www.tatamutualfund.com Email kiran@tataamc.com Union KBC Mutual Fund 7th Floor, Piramal Tower, Peninsula Corporate Park, 48. Ganpatrao Kadam Marg, Lower Parel (West) Mumbai 400013 Tel: 2483 3300 MF/066/11/1 23.3.2011 MF/023/95/9 30.6.1995 MF/002/93/ 21.9.1993 MF/034/97/2 3.1.1997

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Fax: 2483 3401 Web: www.unionkbc.com UTI Mutual Fund UTI Towers, Gn Block, Bandra-Kurla Complex, 49. Bandra (East), Mumbai 400 051 TEL : 56786666 FAX : 56786578 WEB : www.utimf.com MF/048/03/1 14.01.2003

The turnover in the Indian equity markets (BSE and NSE combined) registered a strong 46% growth in FY10-11 (36% CAGR over the last 5 year). However, the markets have witnessed a structural change over the last few quarters with a decline in the higher yielding cash volume and a sharp rise in the lower yielding options volume. On the back of sustained high competitive environment and the change in trading pattern, the blended broking yields declined in FY11 leading to only a moderate growth in broking revenues. However, expenses increased sharply with higher employee costs and costs associated with building capacities in existing as well as new business lines. Consequently the brokerage houses profitability declined in FY10-11.

Some of the larger brokerage houses have reasonably well diversified revenue streams but still remain largely vulnerable to capital markets environment. Given the current challenging outlook for the equity markets over the short term, ICRA expects pressures on the revenue growth over the next few quarters and consequently the overall profitability indicators.

32

Strong Growth In Options Trading Drive Industry Broking Volumes In FY11 The domestic equity brokerage turnover (BSE and NSE combined) registered an increase of 46% in FY10-11 to Rs 339 lakh crore led by a sharp 127% growth in the options segment2. The derivatives segment contributed to 86% of the overall turnover in FY11 as compared to 76% in FY10 while the options segment accounted for 58% in FY11 (37% in FY10) and futures segment for 29% during the same period (39% in FY10). Within the Options segment, the index option based on NIFTY alone accounted for nearly 95% of the total options volume, providing adequate liquidity and further fueling investor appetite. The strong growth of the options segment may be partly attributable to the fact that beginning FY09, the brokerage and Securities Transaction Tax (STT) in the options segment are charged on the premium portion and not on the entire open interest. The activity levels were further supported by the increasing comfort of traders/investors dealing with these products coupled with higher participation in the Indian equities market by sophisticated investors such as Foreign Institutional Investors (FIIs). While the FII participation increased to 15% in FY11 form 12% in FY10 and the proprietary trading segment participation declined to 22% from 26%, the Retail and Domestic Institutional Investor participation remained stable at around 56% and 7%, respectively in the same period.

Chart 1.1: Equity Broking Turnover Year wise

33

The year-on-year changes in the brokerage volumes at the exchanges have been quite volatile indicating the inherent volatile nature of the capital markets. The average daily turnover3 in the equities segment stood at Rs 1.32 lakh crores witnessing a growth of 38% in FY11. As the number of trading days was higher in FY11 than in FY10, the rise in the total volumes at the exchanges is higher than the rise in the average daily turnover.

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

However the more lucrative cash market volumes continue to fall

Equity brokerage volumes in the cash market have seen a continuous decline from its peak in Q2FY10 with the average daily trading volumes (BSE and NSE combined) in the cash segment at Rs 16,115 crores in Q4FY11 as compared to Rs 24,085 crores in Q2FY10. Accordingly, the share of the cash segment at the exchanges declined from 26% in Q2FY10 to ~10% in Q4FY11. In Q4FY11, the options segment contributed to 65% of the total turnover while the futures segment contributed the balance 25%. The total volumes declined in Q1FY12 with further fall in the proportion of cash trades.

34

Chart 1.3: Equity Brokerage Turnover Quarter wise

In terms of trading activity in the market, it declined in the cash segment with both decline in the number of trades and the trade size at the NSE and BSE. The average trade size declined 7.3% y-o-y and stood at Rs 22,365 in FY11 as compared to Rs 24,115 in FY10.

Chart 1.4: Total number of trades cash segment

35

LITERATURE REVIEW WHAT IS A MUTUAL FUND

Mutual fund is a mechanism for pooling the resources by issuing to the investors and investing funds in securities in accordance with objectives as disclosed in offer document. Investments in securities are spread across a wide cross-section of industries and sectors and thus the risk is reduced, Diversification reduces the risk because all stocks may not move in the same direction in the same proportion at the same time. Mutual fund issues units to the investors in accordance with quantum of money invested by them. Investors of mutual funds are known as unit holders. The profits or losses are shared by the investors in proportion to their investment. The mutual funds normally come out with a number of schemes with different investment objectives which are launched from time to time. A mutual fund is required to be registered with Securities and Exchange Board of India (SEBI) which regulates securities markets before it can collect funds from the public. Mutual fund is a collection of stocks and / bonds. A mutual fund as a company brings together a group of people and invests their money in stocks, bonds and other securities. Each investor owns shares, which represent a portion of the holdings of the fund. With increased uncertainties or fluctuations in the primary market and decreasing bank interest rates, mutual funds are gaining popularity day by day Now-a- days mutual funds are performing well will high returns to the investors. There are various types of schemes and plans available to all type of investors.

Let us assume that you inertia million rupees over night and want to invest the same to get better returns you can consider the following investment avenues that are popular in Indian context

36

 Company shares Fixed deposits in banks Government bonds Fixed deposits in NBFC Chit fund Real estate Other local money lending options

Types of Funds:
Mutual funds also come in various sizes and shapes. There are about dozen fund classes but all of them are derivatives of three basic classes are as follows. Growth Income Liquidity

Growth: Long term growth, since these funds invest in equities, they are also
called as equity funds. Their risk level is high so is the return.

Income: This type of fund provides regular income by investing in debt instruments
like bonds, debentures etc., Because of their nature of investment, they are also called debt schemes. Their risk and return levels are medium.

Liquidity: These are primarily invested in money market instruments and thus
most volatile, safer and give lower returns. These funds are also known as cash or money market funds.

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Table 2.1 Pros and cons of the investments:

SNO. Investment Avenue Company shares and stocks Fixed deposits in banks Govt. bonds Fixed deposits in NBFC Chit funds Real estate Other money lending options Risk Return Effort required to track/maintain investment High Low Medium Medium Medium Medium Depends

1. 2. 3. 4. 5. 6. 7.

High Low Medium High High Medium Medium

High Low Medium Medium Medium Medium Medium

Table 2.2 Funds allocation

Funds Balanced fund Invest in Area Is an investment blend of equity and debt Instruments Invest in the company that Participates in Index fund stock market indices in the same weight age comprising of an index Invests in companies pertaining to Sector fund specific sectors like health care, banking, FMCG, technology etc Invest in government bonds and Ells / Tax funds generally long term in nature. They provide tax benefits.

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These are called mutual fund schemes. It is based on the investment objective. There is another Classification based on the capitalization of funds. If the fund offers purchase or selling on a Continuous basis it is called open ended mutual fund. On the contrary, if the fund is open only for a particular period, it is called closed ended fund. Open ended funds gained popularity because of their flexibility and variety of features they offer. For this reason, majority of the mutual funds are open in nature.

Table 2.3 Differences between Open ended and Closed ended funds

SNO. 1. 2. 3. 4.

Feature Capitalization Any time entry Any time exit Tax advantage

Open ended Unlimited Yes Yes Yes No

Closed ended Limited No No No

5.

Available for a fixed period

(with exemption of FMP schemes) Generally No

Yes

6.

Listed on the exchange

Yes

Net Asset Value:

A unit is basic measure of investment n a mutual fund. Each scheme / plan will have a different market value is called the Net asset value or simply NAV. Since market value of the underlying securities changes every day, NAV of a scheme also varies on a day to day basis. NAV = Total assets Total liabilities/Number of units

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Table 2.4 International Funds:

These funds are invested in both domestic and overseas operations.

OBJECTIVE

TYPE

TIME PERIOD Short Term Medium

RISK PROFILE

EQUITY (%)

DEBT (%)

MONEY MARKET INST. / OTHERS (%) 80-100

Money Market

Open Ended

Low

0-20

Income

Open Ended

Long Term Long Term Long Term Long Term

Low to Medium

80-100

0-20

Growth

Open Ended

High

80-100

0-20

0-20

Balanced

Open Ended

Medium to High

0-60

0-40

0-20

Tax Saving

Open Ended

High

80-100

80-100

0-20

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Reasons for the Advantages:

Security and reduced risk. Availability of expert advice of professional management. Diversification of portfolio for best returns. Automatic investment of returns. Best selection and timing of investment through professional approach. Liquidity of investment. Such invest promote savings habit. Tax shelter from various taxes. Safety because for government regulation. Economies of scale, which maximize returns and minimizes cost. Saving schemes of mutual funds.

Reasons for Rise and Downfall of Price:

1. 2. 3. 4. 5. Government policies Natural calamities Management of performance Internal and external factor Political reasons

BENEFITS OF INVESTING IN MUTUAL FUNDS

Its seems strange to compare mutual funds to stocks since mutual funds are primarily composed of stocks, but it is important to distinguish the two because there are some notable advantages to using mutual funds.

41

Professional Management:
Mutual funds provide the services of experienced and skilled professionals, backed by a dedicated investment research team that analyses the performance and prospects of companied and selects suitable investments to achieve the objectives of the scheme.

Diversification:
Mutual funds invest in a number of companies across a broad cross-section of industries and sectors. This diversification reduces the risk because seldom do all stocks decline at the same time and in the same proportion. You achieve this diversification through a Mutual Fund with far less money than you can do on your own.

Convenient-Administration:
Investing in a Mutual fund reduces paperwork and helps avoid many problems such as bad deliveries, delayed payments and follow up with brokers and companies. Mutual funds save your time and make investing easy and companies. Mutual funds save your time and make investing easy and convenient.

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

Low-Costs:
Mutual Funds are a relatively less expensive way to invest compared to directly investing in the capital markets because the benefits of scale in brokerage, custodial and other fees translate into lower costs for investors.

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Liquidity:
In open-end schemes, the investor gets the money back promptly at net asset value related prices from the Mutual fund. In closed-end schemes, the units can be sold on a stock exchange at the prevailing market price or the investor can avail of the facility of direct repurchase at NAV related prices by the Mutual Fund

Transparency:
You get regular information on the value of your investment in addition to disclosure on the specific investments made by your scheme, the proportion invested in each class of assets and the fund mangers investment strategy and outlook.

Flexibility:
Through features such as regular investment plans, regular withdrawal plans and dividend reinvestment plans, you can systematically invest or withdraw funds according to your needs and convenience.

Affordability:
Investors individually may lack sufficient funds to invest in high grade stocks. A Mutual fund because of its large corpus allows even a small investor to take the benefit of its investment strategy.

Choice of Schemes:
Mutual Funds offer a variety of schemes that will suit your needs over a life time. When you enter a new stage in your life, all you need to do is sit down with your investment advisor who will help you to rearrange your portfolio to suit your altered lifestyle.

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Get Focused:
Investing in individual stocks can be fun because each company has a unique story. However, it is important for people to focus on making money. Investing isn't a game. Your financial future depends on where you put you hard earned dollars and it shouldn't be taken lightly. Even if some of us are better at picking stocks than a professional and their support staff, most of us would not want to spend the amount of time it takes to watch, research and trade the market on a daily basis

Efficiency:
By pooling investors' monies together, mutual fund companies can take advantage of economies of scale. With large sums of money to invest, they often trade commission-free and have personal contacts at the brokerage firms.

Ease for use:

Can you imagine keeping track of a portfolio consisting of hundreds of stocks. The bookkeeping duties involved with stocks are much more complicated than owning a mutual fund. If you are doing your own taxes, or are short on time, this can be a big deal.

Well Regulated:
All mutual funds are registered with SEBI and they function with in the provision of strict regulations designed to protect the interests of investors. The operations of Mutual funds are regularly monitored by SEBI.

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TYPES OF RISKS

All investment involves some form of risk. Even an insured bank account is subject to the possibility that inflation will rise faster than your earning, leaving you with less real purchasing power than when you started (Rs. 1000 gets you less than it got your father when he was your age). Consider these common types of risk and evaluate them against potential rewards when you select an investment.

Market Risk:
At times the prices or yields of all the securities in a particular market rise or fall due to broad outside influence. When this happen, the stock prices of both an outstanding, highly profitable company and a fledgling corporation may be affected. This change in price is due to market risk.

Inflation Risk:
Sometimes referred to as loss of purchasing power. Whenever inflation sprints forward faster than earnings on your investment, you run the risk that youll actual be able to buy less, not more. Inflation risk also occurs when prices rise faster than your returns.

Credit Risk:
In short, how stable is the company or entity to which you lend your money when you invest. How certain are you that it will able to pay the interest you are promised, or repay your principal when the investment matures?

Interest Risk:
Changing interest rates affect both equities and bonds in many ways. Investors are reminded that predicting which way rates wick go is rarely successful. A diversified portfolio can help in offsetting these changes.

45

HOW TO INVEST IN MUTUAL FUNDS

Step One - Identify your investment needs. Your financial goals will vary, based on your age, lifestyle, financial independence, family commitments, level of income and expenses among many other factors. Therefore, the first step is to assess your needs. Begin by asking yourself these questions: l. What are my investment objectives and needs? Probable Answers: I need regular income or need to buy a home or finance a wedding or educate my children or a combination of all these needs. 2. How much risk am I willing to take? Probable Answers: I can only take a minimum amount of risk or I am willing to accept the fact that my investment value may fluctuate or that there may be a short-term loss in order to achieve a long-term potential gain. 3. What are my cash flow requirements? Probable Answers: I need a regular cash flow or I need a lump sum amount to meet a specific need after a certain period or I don't require a current cash flow but I want to build my assets for the future. By going through such an exercise, you will know what you want out of your investment and can set the foundation for a sound Mutual Fund investment strategy. Step Two - Choose the right Mutual Fund. Once you have a clear strategy in mind, you now have to choose which Mutual Fund and scheme you want to invest in. The offer document of the scheme tells you its objectives and provides supplementary details like the track record of other schemes managed by the same Fund Manager. Some factors to evaluate before choosing a particular Mutual Fund are:

46

 The track record of performance over the last few years in relation to the appropriate yardstick and similar funds in the same category. How well the Mutual Fund is organised to provide efficient, prompt and personalized service. Degree of transparency as reflected in frequency and quality of their communications. Step Three - Select the ideal mix of Schemes. Investing in just one Mutual Fund scheme may not meet all your investment needs. You may consider investing in a combination of schemes to achieve your specific goals. The following charts are useful in selecting a combination of schemes that satisfy your needs

Aggressive Plan
Growth Scheme IncomeScheme Money market Scheme Balanced Scheme

5% 15%

10%

70%

Chart 2.1 Aggressive Plan This plan may suit Investor seeking Income & moderate growth. Investor looking for growth & stability with moderate risk

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Conservative Plan
Growth Scheme IncomeScheme Money market Scheme Balanced Scheme

10%

10%

30%

50%

Chart 2.2 Conservative plan This plan may suit Retired & other investor who needs to preserve capital & earn regular income Step Four - Invest regularly for most of, the approach that works best is to invest a fixed amount at specific intervals, say every month. By investing a fixed sum each month, you buy fewer units when the price is higher and more units when the price is low, thus bringing down your average cost per unit. This is called rupee cost averaging and is a disciplined investment strategy followed by investors all over the world. With many open-ended schemes offering systematic investment plans, this regular investing habit is made easy for you. Step Five - Keep your taxes in mind as per the current tax laws, Dividend/Income Distribution made by mutual funds is exempt from Income Tax in the hands of investor. Further, there are other benefits available for investment in Mutual Funds under the provisions of the prevailing tax laws. You may therefore consult your tax advisor or Chartered Accountant for specific advice to achieve maximum tax efficiency by investing in Mutual Funds

48

Step Six- Start early It is desirable to start investing early and stick to a regular investment plan. If you start now, you will make more than if you wait and invest later. The power of compounding lets you earn income on income and your money multiplies at a compounded rate of return. Step Seven -The final step all you need to do now is to get in touch with a Mutual Fund or your agent/broker and start investing. Reap the rewards in the years to come. Mutual Funds are suitable for every kind of investor-whether starting a career or retiring, conservative or risk taking, growth oriented or income seeking.

RIGHTS FOR A MUTUAL FUND HOLDER

As a unit holder in a Mutual Fund scheme coming Under the SEBI (Mutual Funds) Regulations, you are entitled to: 1. Receive unit certificates or statements of accounts confirming your title within 30 days from the date of closure of the subscription under open-end schemes or within 6 weeks from the date your request for a unit certificate is received by the Mutual Fund. 2. Receive information about the investment policies, investment objectives, financial position and general affairs of the scheme. 3. Receive dividend within 30 days of their declaration and receive the redemption or repurchase proceeds within 10 days from the date of redemption or repurchase. 4. Vote in accordance with the Regulations to change the Asset Management Company, wind up the schemes. 5. Inspect the documents of the Mutual Funds specified in the scheme's offer document. In addition to your rights, you can expect the Following from mutual fund. To publish their NAV, in accordance with the regulations daily in case of open-ended schemes and once a week, in case of close ended schemes. To disclose your schemes' entire portfolio twice a year, unaudited financial results half yearly and audited annual accounts once a year. In addition many mutual funds send out newsletters periodically. To adhere to a Code of Ethics which require that investment decisions are taken in the best interests of the unit holders.

49

CHAPTER 3 RESEARCH METHODOLOGY

50

RESEARCH METHODOLOGY:
To fulfill the objective of the study both primary and secondary data has been collected. Primary data is the data collected specifically for the study. Data is collected directly from people and organizations via surveys before being analyzed to reach conclusions concerning the issues covered in the survey.

In this study primary data was collected through interaction with staff of FUTURE CAPITAL SECURITIES LTD.

Secondary data is the data collected which can be analyzed and interpreted according to requirements. For example, sources of secondary data are government publications, newspapers, World Wide Web.

In this study the Secondary data is mainly taken from The companys training material. Reconciliation statements Other documents generated within the organization

51

CHAPTER 4 DATA COLLECTION ANALYSIS INTERPRETATION

52

DATA COLLECTION:
The Methodology used for collecting information is through secondary data. Source Of data: Collecting the data from the Funds Fact sheet, data sheets and World Wide Web. Various Websites has given information of their Latest NAV (NET ASSEST VALUE), Portfolio and assets allocation of each Mutual Fund.

Limitations of the study: 1. The main limitation of Mutual Fund is that it takes time to invest money. Unfortunately most mutual Funds receive money when markets are in boom phase and investors are willing to try out Mutual Funds. 2. Since it is difficult to invest all Funds in one day there is some money waiting to be invested. Further, there may be a time lag between investment opportunities are identified. 3. The other limitation of a Mutual Fund is the trading limitation, where the Funds are highly liquid in general most Mutual Funds (called open-ended Funds) cannot be bought or sold in the middle of the trading day. Investors can only buy and sell them at the end of the day, after they have calculated value of their holdings. 4. The portfolios of the Funds do not remain constant. The extent to which the portfolios changes is a function of the style of the individual Fund manager. 5. It is also dependent of the volatility of the Fund size, i.e. whether the Fund is constantly receives fresh subscriptions and redemptions.

53

ANALYSIS & INTERPRETATION

ANALYSIS OF MUTUAL FUND SCHEMES:
Mutual funds of the type equity are analyzed in the study, equity funds are volatile and subject to market risks, analysis is conducted from 30-04-2012 to 14-06-2012, where the trend of the equity funds of various AMCs AXIS BANK, ICICI BANK, RELIANCE MUTUAL FUND, FRANKLIN TEMPLTON funds are studied.

1. AXIS MUTUAL FUND:

Axis Bank was the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and other four PSU insurance companies, i.e. National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The Bank as on 31st March, 2011 is capitalized to the extent of ` 410.54 crores with the public holding (other than promoters and GDRs) at 53.60%. The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. The Bank has a very wide network of more than 1281 branches (including 169 Service Branches/CPCs as on 31st March, 2011). The Bank has a network of over 6270 ATMs (as on 31st March, 2011) providing 24 hrs a day banking convenience to its customers. This is one of the largest ATM networks in the country.

54

Table 3.1 KEY INFORMATION

Mutual Fund Setup Date Incorporation Date Sponsor Trustee Chairman CEO / MD CIO Compliance Officer Assets Managed Axis Mutual Fund Sep-04-2009 Jan-13-2009 Axis Bank Limited Axis Mutual Fund Trustee Limited Dr. T. C. Nair Mr. Rajiv Anand Mr. Chandresh Nigam Mr. Miten Chawda Rs. 8814.94 crore (Mar-31-2012)

Table 3.2 Scheme Highlights

Mutual Fund Scheme Name Scheme Type Scheme Category Launch Date Indicate Load Separately Minimum Subscription Amount Axis Equity Fund Axis Equity Fund Open Ended Growth 11-NOV-09 2.25% Rs. 5,000/-

55

Table 3.3 Investment Pattern

The asset allocation under the Scheme will be as follows S.No 1. 2. Asset type Equities & equity related instruments Debt & Money market instruments Normal allocation % 93.35 6.65

Scheme Objective:
To achieve long term capital appreciation by investing in a diversified portfolio predominantly consisting of equity and equity related securities including derivatives. Investment in derivatives up to 50% of the net assets of the scheme, investments in securities lending unto 35% of the net assets of the scheme, investment in foreign debt instruments unto 35% of the net assets of the scheme, includes investment in ADR and GRAs issued by companies in India/equity of listed overseas companies as permitted by SEBI regulations unto 50% of net assets of the scheme. The scheme shall seek to generate long-term capital growth from an actively managed portfolio of predominantly equity and equity related instruments. The scheme portfolio would acquire, interalia, small and medium size businesses with good long term penitential, which are available at cheap valuations. Such securities would be identified through disciplined fundamental research keeping in view medium to long-term trend in the business environment. The scheme shall endeavor to accumulate long-term investor wealth by opening subscriptions to units during periods when stocks are available at reasonable valuations. By doing so, the fund managers would endeavors to prevent short-term money from flowing into the fund which can prove detrimental to the interests of long-term investor. As the scheme would be sold to investors with a long-term investment horizon, it is also expected that the portfolio would remain relatively more insulated to day to day redemption pressures. The fund will close subscription, once it has collected a predetermined manageable corpus (approximate amount), which will be decided by the fund

56

manager of the scheme depending on the available investment opportunities in the stock market / if the fund manager is of the opinion that investment opportunities have diminished. Thus the fund manager will endeavor to ensure that there are sufficient assts available to meet the long-term objectives of the fund.

Table 3.4 Absolute returns

Year 2012 2011 2010 Qtr 1 12.4 -7.2 3.4 Qtr 2 -0.4 2.5 Qtr 3 -10.5 13.0 Qtr 4 -5.3 -2.7 Annual -22.8 17.7

Table 3.5 Absolute Annualized Returns of Axis Equity Fund

1 Month Absolute Relative to Sensex Relative to Nifty 3.78 0.28 -0.01 3 Months 3.33 2.57 3.04 6 Months 9.00 2.52 1.21 1 Year -4.69 2.99 2.00 Inception 0.69 2.63 1.96

Table showing Absolute Annualized Returns of Axis Equity Fund

57

Annualized Returns
10 8 6 4 2 0 -2 -4 -6 Absolute Relative to Sensex Relative to Nifty Inception 1 Year 6 Months 3 Months

Chart 3.1 showing Absolute Annualized Returns of Axis Equity Fund INTERPRETATION: It is seen that the absolute annualized returns is 3.78 which has grown from 0.69 from its Inception. This reveals that the returns are increased despite going negative a year ago it has kept the investors satisfied with expected returns. So that I conclude its a growing performer.

58

Table3.6 Top Holdings (31st May 12) Equity

EQUITY ITC RELIANCE TCS HDFC BANK ICICI BANK INFOSYS SBI LARSEN TATA MOTORS HDFC Sector Tobacco Oil & Gas Technology Banking/Finance Banking/Finance Technology Banking/Finance Engineering Automotive Banking/Finance Asset % 6.25 6.25 6.15 6.04 6.00 5.38 4.90 3.80 2.86 6.24

PORTFOLIO
TATA MOTORS LARSEN SBI INFOSYS ICICI BANK HDFC BANK HDFC ITC RELIANCE TCS

Chart 3.2 Showing Portfolio and assest %

59

Table 3.7 Sector Allocation (31st May 12)

SECTOR METALS & MINING BANKING/FINANCE TECHNOLOGY OIL & GAS AUTOMOTIVE PHARMACEUTICALS % High 7.83 26.17 14.55 8.42 7.34 6.67 9.23 26.17 14.76 9.53 8.24 7.77 1-Year Low 3.83 21.83 9.33 6.34 1.44 5.38

SECTOR ALLOCATION
9% 10% 12% 37% 21% 11% METALS & MINING BANKING/FINANCE TECHNOLOGY OIL & GAS AUTOMOTIVE PHARMACEUTICALS

Chart 3.3 Showing Sector Allocation

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Table 3.8 Asset Allocation (%)

Equity Others Debt Mutual Funds Money Market Cash / Call 92.03 1.33 0.00 N.A 0.00 6.65

Table 3.9 Concentration

Holdings Top 5 Top 10 Sector Top 3 (%) 30.93 53.87 (%) 49.14

Table 3.10 Returns (NAV)

PERIOD 1 MONTH 3 MONTH 6 MONTH 1 YEAR 2 YEARS Returns (%) 3.7 -2.5 9.7 -1.6 -2.9 Rank # 54 11 42 27 51

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RETURNS
12 10 8 6 4 2 0 -2 -4 2 Years 1 Year 6 Months 3 Months 1 Month RETURNS

Chart 3.4 Showing Returns (NAV) INTERPRETATION:

It is seen that the returns 2 Years ago is -2.9% which has to increased drastically 9.7% during past 6 months. This tells us that the fund is increasing considerably good with returns of 3.7% on March 31, 2012.

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2. ICICI PRUDENTIAL MUTUAL FUND:

Managed by ICICI Prudential Asset Management Company, ICICI Prudential Mutual Fund is a joint venture between Prudential Plc and ICICI Bank. While Prudential Plc is one of the largest players in insurance and fund management sectors in UK, ICICI Bank, on the other hand, is Indias second largest bank in the private sector. Prudential Plc is a dominant player in international financial services group, with operations spread across Asia, the US, and the UK. ICICI Bank provides numerous banking products and financial services to both corporate and retail customers through different delivery channels and specialized subsidiaries in the areas of investment banking, life and non-life insurance, venture capital, and asset management. ICICI Prudential Mutual Fund offers plenty of retail and corporate investment solutions ranging in a variety of asset classes, namely, Equity, Fixed Income, Real Estate, and Gold.

Table 4.1 KEY INFORMATION

Mutual Fund Setup Date Incorporation Date Sponsor Trustee Chairman CEO / MD ICICI Prudential Mutual Fund Oct-13-1993 Jun-22-1993 Prudential Plc and ICICI Bank Ltd. ICICI Prudential Trust Ltd Ms. Chanda Kochhar Mr. Nimesh Shah

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CIO Compliance Officer Investor Service Officer Assets Managed

Mr. S Naren Ms. Supriya Sapre Ms. Kamaljeet Saini Rs. 68718.50 crore (Mar-31-2012)

Table 4.2 Scheme highlight:

Mutual Fund Scheme Name Scheme Type Scheme Category Launch Date ICICI Prudential Mutual Fund ICICI Prudential Equity & Derivatives Fund-Wealth Optimiser Plan Open Ended Growth 8-Nov-06

Minimum Subscription Amount Rs.5000/Fund manager Mrs.Deven sangoi

Objective of Scheme: The investment objective of Wealth Optimiser Plan under the scheme is to seek to provide capital appreciation and income distribution to the investors by using equity derivatives strategies, arbitrage opportunities and pure equity investments. The investment objective of the scheme is to seek to generate low volatility returns by using arbitrage and other derivative strategies in equity markets and investments in short-term debt portfolio.

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Table 4.3 Absolute returns

Year 2012 2011 2010 2009 2008 2007 Qtr 1 2.2 2.5 0.9 1.5 2.4 2.5 Qtr 2 2.0 1.0 1.2 1.8 4.2 Qtr 3 1.5 2.1 1.4 1.6 1.8 Qtr 4 1.6 2.6 -0.5 2.5 1.7 Annual 7.9 6.6 4.3 8.4 10.9

12 10 8 6 4 2 0 2007 10.9

ANNUAL RETURNS
8.4 6.6 4.3

ANNUAL RETURNS

7.9

2008

2009

2010

2011

Chart 4.1 showing absolute returns of ICICI INTERPRETATION:

It is seen that the absolute annualized returns is 7.9 which has decline from 10.9 from its Inception. This reveals that the returns are increased steadily despite going negative a year ago it has kept the hopes to investors with expected increase in returns. So that I conclude its a re-gaining performer.
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Table 4.4 Top Holdings (31st May 12)

EQUITY ABG SHIPYARD BHARAT FORGE PANTALOON RET TATA POWER STERLITE IND BALRAMPUR CHINI BAJAJ AUTO POWER GRID CORP TATA GLOBAL BEV Sector Services Manufacturing Retail & Real Estate Utilities Metals & Mining Food & Beverage Automotive Utilities Food & Beverage Asset % 8.18 5.98 5.90 5.68 4.86 4.70 4.59 3.87 2.94

PORTFOLIO
8% 10% 10% 10% 12% 13% 6% 18% 13% ABG SHIPYARD BHARAT FORGE PANTALOON RET TATA POWER STERLITE IND BALRAMPUR CHINI BAJAJ AUTO POWER GRID CORP TATA GLOBAL BEV

Chart 4.2 Showing Portfolio and assest %

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Table 4.5 Sector Allocation (31st May 12)

Sector Metals & Mining Utilities Services Automotive Food & Beverage Manufacturing % High 9.62 9.55 8.18 15.12 7.64 5.98 16.26 11.35 11.90 15.12 7.64 6.17 1-Year Low 2.94 4.25 3.85 5.93 1.73 2.62

SECTOR ALLOCATION
11% 14% 17% 17% Metals & Mining Utilities Services 27% Automotive 14% Food & Beverage Manufacturing

Chart 4.3 Showing Sector Allocation

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Table 4.6 Asset Allocation (%)

Equity Others Debt Mutual Funds Money Market Cash / Call 64.90 0.00 4.52 N.A 0.00 30.57

Table 4.7 Concentration

Holdings Top 5 Top 10 (%) 36.27 57.23

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

PERIOD 1 MONTH 3 MONTH 6 MONTH 1 YEAR 2 YEARS 3 YEARS 5 YEARS Returns (%) 0.9 3.3 5.4 8.3 8.9 7.0 7.2 Rank # 7 1 5 12 1 1 4

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RETURNS
10 9 8 7 6 5 4 3 2 1 0 5 Years 3 Years 2 Years 1 Year 6 Months 3 Months 1 Month 0.9 3.3 7.2 7 5.4 RETURNS 8.9 8.3

Chart 4.4 Showing Annualized Returns

INTERPRETATION:
It is seen that the returns of past 5 Years is 7.2% which has to increased consistently for 4 Years by reaching 8.9% a year ago and there after it has not performed as expected by declining to worst of 0.9% a month ago. This tells us that the fund is decreasing drastically; this fund is performing very low since its inception. Its a nonperforming fund.

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3. RELIANCE EQUITY FUND:

Reliance Mutual Fund (RMF) is the biggest Mutual Fund house in India. It has has been sponsored by Reliance Capital Ltd (RCL). RCL has been promoted by Reliance Industries Ltd., one of India's largest private sector enterprise. Reliance Capital Asset Management Ltd manages the investments of Reliance Mutual Fund.

Table 5.1 KEY INFORMATION

Mutual Fund Setup Date Incorporation Date Sponsor Trustee CEO / MD Compliance Officer Investor Service Officer Assets Managed Reliance Mutual Fund Jun-30-1995 Feb-24-1995 Reliance Capital Limited Reliance Capital Trustee Co. Ltd. Sundeep Sikka Mr. Muneesh Sud Mr. Bhalchandra Joshi Rs. 78111.79 crore (Mar-31-2012)

Table 5.2 Scheme highlights

Mutual Fund Scheme Type Reliance Mutual Fund Open Ended

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Scheme Category Launch Date Minimum Subscription Amount Fund manager

Growth 6-Feb-06 Rs 5000/Mr. SUNIL SINGHANIA

Objective of Scheme:
The primary investment objective of the scheme is to seek to generate capital appreciation & provide long term growth opportunities by investing in a portfolio constituted of equity & equity related securities of top 100 companies by market capitalization & of companies which were available in the derivatives segment from time to time and the secondary objective is to generate consistent returns by investing in debt and money market securities

Table 5.3 Absolute returns

Year 2012 2011 2010 2009 2008 2007 Qtr 1 21.2 -7.3 5.5 -6.4 -31.8 Qtr 2 2.7 47.5 -14.2 Qtr 3 -8.8 27.4 -1.3 8.5 Qtr 4 -8.5 -0.2 -21.2 26.1 Annual -21.8 5.5 103.8 -56.0 37.6

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150 100 50 0 -50 -100 2007 37.6

ANNUAL RETURNS
103.8

ANNUAL RETURNS

5.5 2008 -56 2009 2010 2011-21.8

Chart 5.1 Showing Annual Returns INTERPRETATION:

It is seen that the absolute annualized returns is 37.6 which is declined to -5.6 in 2008 but an outstanding regain in the year 2009 with returns of 103.8. This reveals that the returns are increased despite going negative a year ago but it has not kept the momentum and dropped drastically to -21.8. So that I conclude its a below average performer fund.

Table 5.4 Top Holdings (31st May 12)

Equity Divis Labs SBI Infosys ICICI Bank Trent

Sector Pharmaceuticals Banking/Finance Technology Banking/Finance Retail & Real Estate

Asset % 7.11 6.44 4.43 3.88 3.57

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Maruti Suzuki Aventis Pharma Hathway Cable Larsen Persistent

Automotive Pharmaceuticals Media Engineering Technology

3.53 3.30 3.22 2.91 2.84

PORTFOLIO
8% 9% 9% 9% 10% 17% 8% 18% Divis Labs SBI Infosys ICICI Bank Trent 12% Maruti Suzuki Aventis Pharma Hathway Cable Larsen

Chart 5.2 Showing Portfolio and assest %

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Table 5.5 Sector Allocation (May 31, 12)

Sector Pharmaceuticals Technology Banking/Finance Automotive Retail & Real Estate Engineering % High 14.83 13.83 12.78 8.77 8.42 8.24 15.91 15.25 12.78 12.28 8.42 8.57 1-Year Low 9.91 10.96 8.13 7.86 5.47 6.65

Sector Allocation
12% 13% 22% Pharmaceuticals Technology 13% 21% 19% Banking/ Finance Automotives Retail & Real Estate Engineering

Chart 5.3 Showing Sector Allocations

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Table 5.6 Asset Allocation (%)

Equity Others Debt Mutual Funds Money Market Cash / Call 87.72 8.03 0.00 N.A 0.00 4.24

Table 5.7 Concentration

Holdings Top 5 Top 10 (%) 25.43 41.23

Table 5.8 Returns (NAV as on Jun-15-2012)

Period 1 month 3 month 6 month 1 year 2 years 3 years Returns (%) 3.3 -0.3 18.9 0.9 -22.8 Rank # 52 4 1 4 45 89

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Returns (%)
25 20 15 10 5 0 -5 -10 -15 -20 -25 -22.8 3 Years 0.9 1 Year 6 Months -0.3 3 Months 3.3 1 Month 18.9

Returns %

Chart 5.4 Showing NAV Analysis of RELIANCE Equity Fund

INTERPRETATION:
It is seen that the returns of past 3 Years is -22.8% which has to increased consistently for 2 Years by reaching 18.9% 6 months ago and there after it has not performed as expected by declining to -0.3% a month ago. This tells us that the fund is decreased drastically; this fund is performing very low but expected to grow, Its a average performing fund.

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4. Franklin Templeton Mutual Fund

Franklin Templeton's association with India dates back to more than a decade as an investor. As part of the group's major thrust on investing in markets around the world, the India office was set up in 1996 as Templeton Asset Management India Pvt. Limited. It flagged off the mutual fund business with the launch of Templeton India Growth Fund in September 1996, and since then the business has grown at a steady pace.

In July 2002, Franklin Templeton India acquired Pioneer ITI, another leading fund house in India to create an organization with rich investment experience over market cycles, one of the most comprehensive product portfolios, footprint across the country and an in-house shareholder servicing function. The huge synergies that existed in the two organizations have helped the business grow at a rapid pace, catapulting the company to among the top two fund houses in India.

Table 6.1 KEY INFORMATION

Mutual Fund Setup Date Incorporation Date Sponsor Trustee Franklin Templeton Mutual Fund Feb-19-1996 Oct-06-1995 Templeton International Inc. Franklin Templeton Trustee Services

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CIO Compliance Officer Investor Service Officer Assets Managed

Mr. R. Sukumar / Mr. Santosh Ms. Shilpa Shetty Ms. Sheela Kartik Rs. 34492.68 crore (Mar-31-2012)

Table 6.2 Scheme Highlights

Category: Sub-Category: Type: Min. Investment(Rs): Total Assets(Rs./Mn): Registrars: Launch Date: Equity Equity-Diversified Open 5000 17271.09 Franklin Templeton Asset Management 09-AUG-94

Scheme Objective:
An open end growth scheme with an objective to provide growth of capital plus regular dividend through a diversified portfolio of equities, fixed income securities and money market instruments.

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Table 6.3 Absolute Returns (in %)

Year 2012 2011 2010 2009 2008 2007

Qtr 1 14.6 -3.6 3.4 -4.0 -25.3 -4.6

Qtr 2 -0.4 0.2 40.1 -13.1 21.9

Qtr 3 -7.0 16.0 15.3 5.1 13.4

Qtr 4 -5.7 -3.4 7.2 -21.1 18.8

Annual -17.1 18.4 69.5 -47.7 53.0

Table 6.4 Returns Analysis

1 month 3 months 6 months

1 year

3 years

Inception

Absolute

3.35

-3.02

8.67

-3.07

9.73

18.76

Relative Sensex

-2.39

-0.06

-0.74

2.69

5.47

18.76

Relative to Nifty

-2.43

0.34

-1.81

1.71

5.34

18.76

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Annualized Returns
20 15 10 5 0 -5 Absolute Relative to Sensex Relative to Nifty

Chart 6.1 showing Absolute Annualized Returns of Franklin Templeton Fund

INTERPRETATION:
It is seen that the absolute annualized returns is 18.76 which is declined to -3.07 in past year but an outstanding regain within 6 months with returns of 8.67, this reveals that the returns are increased despite going negative but it is not consistent through out. So that I conclude its a below average performer fund.

Table 6.5 Top Holdings

Equity INFOSYS BHARTI AIRTEL ICICI BANK HDFC BANK Sector Technology Telecom Banking/Finance Banking/Finance Value (Rs cr) 127.36 119.64 119.21 87.28 Asset % 7.37 6.93 6.90 5.05

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GRASIM KOTAK MAHINDRA INDUSIND BANK RELIANCE BOSCH Dr.REDDY LABS

Conglomerates Banking/Finance Banking/Finance Oil & Gas Automotive Pharmaceuticals

67.51 51.72 49.12 49.07 46.89 46.63

3.91 2.99 2.84 2.84 2.71 2.70

PORTFOLIO
6% 18% INFOSYS BHARTI AIRTEL 17% ICICI BANK HDFC BANK GRASIM KOTAK MAHINDRA 12% 17% INDUSIND BANK RELIANCE BOSCH

7% 7% 7% 9%

Chart 6.2 Showing Portfolio and Assests %

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Table 6.6 Sector Allocation (May 31, 12)

Sector

% High

1-Year Low 14.65

Banking/Finance

19.57

21.46

Pharmaceuticals

10.31

10.31

4.95

Automotive

9.45

10.42

8.34

Technology

8.94

13.95

8.63

Telecom

8.55

12.95

8.17

Oil & Gas

8.05

10.11

7.44

SECTOR ALLOCATION
12% 13% 14% 16% 15% 30% Banking/Finance Pharmaceuticals Automotive Technology Telecom Oil & Gas

Chart 6.3 Showing Sector Allocation

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Table 6.7 Asset Allocation (%)

Table 6.8 Concentration

Equity Others Debt SMutual Funds Money Market Cash / Call

94.57 0.08 0.06 N.A 0.00 5.30

Holdings Top 5 Top 10 Sector Top 3

(%) 30.17 44.26 (%) 39.33

Table 6.9 Returns (NAV as on Jun-15-2012)

Period 1 month 3 month 6 month 1 year 2 year 3 year 5 year Returns (%) 3.4 -3.0 8.7 -3.1 2.6 9.7 7.3 Rank # 50 32 62 21 12 33 23

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Returns (%)
12 10 8 6 4 2 0 -2 -4 5 Years 3 Years 2 Years 1 Year -3.1 6 Months 3 Months -3 1 Month 2.6 3.4 7.3 9.7

8.7

Chart 6.4 Showing NAV Analysis of FRANKLIN TEMPLETON Equity Fund

INTERPRETATION:
It is seen that the returns of past 5 Years was 7.3% which has to increased to 9.7% but dropped a lot in past 1 year to -3.1 but within no time regained its position to 8.7% but unfortunately gone in negative -3% within 3 months again seen a slightly increase to current position of 3.4%. This tells us that the fund is fluctuating a lot which is a good sign for aggressive investors for short term gains, this has created a W shaped graph which is seen as a double dip recession, and this fund is an above average performing fund.

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Table 7.1 NAVs of various FUND Schemes

SECTOR DATE 1st June 2012 2nd June 2012 3rd June 2012 4th June 2012 5th June 2012 6th June 2012 7th June 2012 8 June 2012 9th June 2012 10th June 2012 11th June 2012 12th June 2012 13th June 2012 14th June 2012 15th June 2012 16th June 2012 17th June 2012 18 June 2012 19th June 2012 20th June 2012 21st June 2012 22nd June 2012 23rd June 2012 24th June 2012 25th June 2012
th th

BANKING AXIS 9.88 9.85 9.85 9.85. 9.72 9.73 9.74 9.97 10.07 10.07 10.07 10.09 10.07 10.08 10.18 10.07 10.07 10.07 10.21 10.06 10.13 10.16 10.23 10.23 10.2 ICICI 14.87 14.84 14.84 14.84 14.87 14.86 14.87 14.87 14.88 14.88 14.88 14.87 14.89 14.90 14.90 14.91 14.91 14.87 14.87 14.93 14.9 14.92 14.92 14.92 14.92

N.B.F.C FRANKLIN TEMPLETON 18.43 18.42 18.42 18.42 18.08 17.89 18.06 18.30 18.38 18.38 18.38 18.41 18.6 18.61 18.62 18.44 18.44 18.44 18.53 18.63 18.63 18.82 18.80 18.80 18.81 RELIANCE 11.92 11.87 11.87 11.87 11.63 11.69 11.74 12.03 12.15 12.15 12.15 12.20 12.11 12.12 12.24 12.06 12.06 12.06 12.24 12.04 12.12 12.24 12.35 12.35 12.33

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Chapter 5

FINDINGS CONCLUSION

86

FINDINGS: AXIS BANK:

It is seen that the returns 2 Years ago is -2.9% which has to increased drastically 9.7% during past 6 months. This tells us that the fund is increasing considerably good with returns of 3.7% on March 31, 2012.

ICICI BANK
It is seen that the returns of past 5 Years is 7.2% which has increased consistently for 4 Years by reaching 8.9% a year ago and there after it has not performed as expected by declining to worst of 0.9% a month ago. This tells us that the fund is decreasing drastically; this fund is performing very low since its inception. Its a nonperforming fund.

RELIANCE:
It is seen that the returns of past 3 Years is -22.8% which has to increased consistently for 2 Years by reaching 18.9% 6 months ago and there after it has not performed as expected by declining to -0.3% a month ago. This tells us that the fund is decreased drastically; this fund is performing very low but expected to grow, Its a average performing fund.

FRANKLIN TEMPLETON:
It is seen that the returns of past 5 Years was 7.3% which has to increased to 9.7% but dropped a lot in past 1 year to -3.1 but within no time regained its position to 8.7% but unfortunately gone in negative -3% within 3 months again seen a slightly increase to current position of 3.4%. This tells us that the fund is fluctuating a lot which is a good sign for aggressive investors for short term gains, this has created a W shaped graph which is seen as a double dip recession, and this fund is an above average performing fund

87

CONCLUSIONS:
1. From the findings of Axis equity fund, we can analyze that fund is growing performer and expected to grow over years; the fund is increasing considerably good with returns as on March 31, 2012. 2. From the findings of I.C.I.C.I equity fund we can analyze that the returns are increased steadily despite going negative a year ago it has kept the hopes to investors with expected increase in returns. So its a re-gaining performer. 3. From the findings of Reliance equity fund we can analyze that the returns are increased despite going negative a year ago but it has not kept the momentum and dropped drastically to -21.8. So that I conclude its a below average performer fund. 4. From the findings of ICICI equity fund we can analyse that the returns are increased despite going negative but it is not consistent throughout, so that I conclude its a below average performer fund. 5. Comparing of various schemes on the basis of annualized returns that among the equity based fund, AXIS equity fund and ICICI equity fund, both funds are considerably growing this indicates there is a good sign for investors to invest in banking sector, whereas Franklin Templeton equity fund and Reliance equity fund, annualized returns show that both the equity fund had less returns since inception of the fund and can be said has good fund than the other funds. 6. Comparative analysis of NAV revels that AXIS equity is performing good when compared to ICICI equity fund, Reliance equity fund and Franklin Templeton equity fund. While Reliance equity is average performer and Franklin Templeton equity find is above average performer. Therefore we can conclude that Reliance equity fund is better fund than Franklin Templeton equity fund and ICICI equity fund.

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BIBLIOGRAPHY:

Books Referred:
M.Y. Khan, Financial Services, 4th Edition, The McGraw Hill co.

Web Sites referred:

www.nseindia.com www.moneycontrol.com www.amfi-india.com www.myiris.com

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