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REPORT SUBMITTED IN PARTIAL FULFILLMENT OF MASTER DEGREE
Sruti Suar(0906286019) Srusti Academy Of Management Page 1
Finance & its functions are the part of economic activity. Finance is very essentially needed for all types of organizations viz; small, medium, large-scale industries & service sector. Hence the role of finance manager & the subject finance accounting gained maximum importance. Liberalization, globalization & privatization created new challengers to entrepreneur & corporate in carrying they’re day to day activities. So,“finance is regarded as the life blood of a business organization.” Master of Business Administrator is professional course which develop a new body of knowledge & skill set & make as available for those seeking challenging carriers. The goal of the Summer Training is to give a corporate exposure to the students as well as to give them an opportunity to apply theory into the practice. The real business problems are drastically different from class-room case solving. Summer Project aims to providing little insight into working of an organization to a management trainee. Among every stage of knowledge being inculcated in students, practical training in the corporate world plays a significant role in exhibiting and pruning their capabilities. The purpose behind writing a report is to put in to works the practical training that is imparted into me that gives a better and a clear understanding of the experience I got. “PERFORMANCE ANALYSIS OF DIFFERENT MUTUAL FUND COMPANYS BY USING PORTFOLIO EVALUATION TECHNICS”
Sruti Suar(0906286019) Srusti Academy Of Management Page 2
I would like to pay my regards and sincere thanks to my in charge Prof. reflecting my learning in the past six weeks. Sruti Suar hereby declare that this project report is the record of authentic work th th carried out by me during the period from 26 april 2010 to 13 aug 2010 and has not been submitted to any other University or Institute for the award of any degree. SRUTI SUAR DECLARATION I. Sibajee Meher(Regional Manager. N. ‘INDIA INFOLINE’ has given me the opportunity to gain invaluable experience under the guidance of Mr. MBA) for Stimulating suggestions and encouragement helped me in all the time of my internship. Their continuous support and valuable in hand experience provided me with the conceptual understanding and practical approach needed to work efficiently for this project. Sruti Suar(0906286019) Srusti Academy Of Management Page 3 .BBSR).In pursuit of an MBA degree. I sincerely thank all of them.S Nanda(H. Mr. Again. I hope this report.O. summer internship is a critical component of the entire process. is as beneficial to the organization as it had been to me. Ms.Acharaya Vihar. Last but not the least. I also would like to thank the entire staff of IIFL and all my friends and colleagues who helped whenever I faced any difficult situation.D .
Rourkela. She has worked under my guidance.Orissa. bearing Regd no: 0906286019 has successfully completed the project work titled “Performance Analysis Of Different Mutual Fund Companies By using Portfolio Evaluation Technics” in partial fulfilment of requirement for the completion of MBA course as prescribed by Biju Pattnaik University Of Technology.Signature Name of the Student Date GUIDE CERTIFICATE This is to certify that Ms. This project report is the record of authentic work carried out by her th th during the period from 26 april 2010 to 13 aug 2010. Sruti Suar of Srusti Academy Of Management. Signature Name Project Guide (Internal) Date: Counter signed by Signature Name Vice-Principal Date: Sruti Suar(0906286019) Srusti Academy Of Management Page 4 .
Chapter 3 deals with review of literature.CHAPTER OUTLINE While preparing this project report I got the knowledge about various aspects regarding financial decisions made in organisation like “INDIA INFOLINE” the business world. objective & scope. My project is divided into 5 chapters & they are given as under. methodology used and the limitations of the study. 3. conclusion. Chapter 2 states the mutual fund industry profile and company profile. CONTENTS: Sruti Suar(0906286019) Srusti Academy Of Management Page 5 . 1. Chapter 4 basically states the Analysis and interpretation of the Mutual Funds. 4. need. 5. Chapter 5 deals with the use of findings. Chapter 1 deals with introduction of the mutual fund. 2. Suggestions.
CHAPTER : I Sruti Suar(0906286019) Srusti Academy Of Management Page 6 .
An average investor has found refuge with the mutual funds.5. India can now boast of having dominance in this industry. There are many institutions in India which provide wealth management services. These benefits mainly include diversification. On the contrary. potential of returns. Mutual fund investments carry low risk because of their diversified nature. Second most important reason for this growth is a favorable regulatory regime which has been enforced by SEBI. stocks. This industry has indeed come a very long way with only 40 players in the market and more than 500 schemes. The size of Indian mutual fund industry has grown in recent few years. 565 crores in January 2000 to Rs. One of the major factors contributing to the growth of this industry has been the booming stock market with an optimistic domestic economy.BACKGROUND OF THE STUDY Today there are plenty of investment avenues open. the growth of mutual fund industry has been exceptional. 601. In the past few months there has been consolidation going on in the mutual fund industry.1. Some of them include banks deposits. People have now started opting for portfolio managers who have the expertise in stock markets. stocks of companies have high risk but the returns are also proportionately high. Investors may invest money in banks. Sruti Suar(0906286019) Srusti Academy Of Management Page 7 . There have been a lot of changes in the mutual fund industry in past few years. It's all about long term financial planning. The total Asset Under Management popularly known as AUM has increased from Rs. bonds. Mutual funds are turned to be the most preferred choice worldwide for both small and big investors due to their numerous advantages. This regulatory board has improved the market surveillance to protect the investor's interest. mutual fund investments and corporate debentures. In India now offer a wide range of schemes to choose.98 crores in April 2008. 01. The recent trends since last year clearly suggest that the average investors have lost money in equities. efficiency and easy to use. 67. bonds and corporate debentures where the risk is low and so are the returns. professional management. Lots of multinational companies have bought their professional expertise to manage funds worldwide. According to the Association of Mutual Funds in India. It is important to understand the benefits of mutual funds before investing the money you really care about.
To see the interest of people in investing in mutual fund. Some of the top mutual funds in India are: Reliance Mutual Fund UTI Mutual Fund HDFC Mutual Fund Prudential ICICI Mutual Fund SBI Mutual fund DSP BlackRock Mutual Fund Franklin Templeton Mutual fund OBJECTIVES OF THE STUDY 1. Top mutual funds also suffer because of the fluctuations in the market. every problem has several researches involved in it. To know the investment behaviour of investors in mutual fund according to the different age group. each backed by study. 2. To measure the performance of various mutual fund companies by using portfolio evaluation techniques such as Sharpe ratio. To know the awareness among the potential investors about the various products and services offered by IIFL. It is important to study about the returns given by AMC Mutual Funds and perform a comparative analysis. The pooled money is invested in shares. 4. Sruti Suar(0906286019) Srusti Academy Of Management Page 8 . To know the awareness of mutual fund among the people. debentures and treasury bills and thus has high risk involved.dimensional avenue and all the intricacies in a highly fashionable manner. Indian mutual funds however reveal this multi. Remember. it is important to perform a comparative study. It provides a lot of scope to understand the scenario and make some thoughtful investments for decent returns. 5. In order to invest in the best mutual funds. 3.NAV is directly proportionately to the bearish trends of the market.
I have selected top 10 fund houses. Application of various tools and techniques to obtain relevant information related to a case. Step3: Analyses ratios and their relevance for evaluating these funds. Step4: Generation of a project report. 2. from that I have chosen 5 mutual fund houses as mentioned under: SBI Mutual Fund Reliance HDFC mutual fund Franklin Templeton DSP Blackrock mutual fund The following methodology is adopted for evaluation of performance of these selected companies. The various steps includes: 1. The primary data collection was the most important part of the project. which depicts the characteristics of the complete population. 5. Step3: Calculation of different ratios. 3.e.METHODOLOGY OF THE STUDY Methodology basically means the selection of the various methods and techniques in the research-conducted. 4. This includes collecting the information through field research. For the purpose of the research. RESEARCH DESIGN There are 40 mutual fund houses currently operating in India. Generation of a final report. Collection of relevant data. Step2: Collection of data i. Step1: Selection of few well-performing schemes of Big Fund Houses of India. For collecting information. Selection of a representative sample from the general population. a personal interview was conducted with the help of Sruti Suar(0906286019) Srusti Academy Of Management Page 9 . NAVs of 1yr for each scheme of mutual Funds dated st st from 1 sept 2009 to 1 sept 2010. Analysis and interpretation of the data. DATA COLLECTION Data can be collected through the primary sources as well as through the secondary souses.
Unawareness among investors is next in the line. Extreme variability in MARKET. data is to be analyzed. The secondary data collection includes collection of data through secondary sources like from magazines. The investor does not want to invest in Mutual Funds because of the myth that investment in these funds lead to insensitive returns. Sample size is limited to 100 only thus sample size does not adequately represent the national market. Sruti Suar(0906286019) Srusti Academy Of Management Page 10 . he wants to invest in a fixed instrument from where he may be able to get secured returns instead of having unasserted returns. news papers. Market is very demography. The NAVs of each scheme was collected from internet. Limited time was another constraint. LIMITATIONS OF THE STUDY Limited information through secondary research report is basic hindrance in finding out the true results related to investments in mutual fund schemes by an investor. They think that market is highly volatile and will not be able to give him the secured returns. internet etc. The findings and the analysis have been mentioned further in the report. Rather. The investor also does not want to invest because of the greater risk attached with equity. DATA ANALYSIS After collecting the data.questionnaire and the required information was collected for the respondents.
CHAPTER : II Sruti Suar(0906286019) Srusti Academy Of Management Page 11 .
economy and business and also www. India Infoline Ltd (NSE: INDIAINFO. IIFL’s research is acknowledged by none other than Forbes as ‘Best of the Web’ and ‘…a must read for investors in Asia’. www.com. IIFL also received membership of the Colombo Stock Exchange becoming the first foreign broker to enter Sri Lanka. Wealth management. IIFL owns and manages the website. The group caters to a customer base of about a million customers. IIFL offers advice and execution platform for the entire range of financial services covering products ranging from Equities and derivatives. Insurance. Commodities. online. is one of the leading players in the Indian financial services space. India Infoline was also adjudged as ‘Fastest Growing Equity Broking House . comprising the holding company.500 business locations spread over more than 500 cities and towns across India facilitates the smooth acquisition and servicing of a large customer base.Large firms’ by Dun & Bradstreet.COMPANY PROFILE: The IIFL (India Infoline) group. over a variety of mediums viz. Fixed deposits. BSE: 532636) and its subsidiaries.com. stock markets. Loans. Asset management. Our research is available not just over the Internet but also on international wire services like Bloomberg. A forerunner in the field of equity research. GoI bonds and other small savings instruments. Thomson First Call and Internet Securities where it is amongst one of the most read Indian brokers. which is one of India’s leading online destinations for personal finance. Investment Banking. over the phone and at each branches. IIFL has been awarded the ‘Best Broker. All offices are connected with the corporate office in Mumbai with cutting edge networking technology. IIFL recently received an in-principle approval for Securities Trading and Clearing memberships from Singapore Exchange (SGX) paving the way for IIFL to become the first Indian brokerage to get a membership of the SGX.5paisa. India’ in the AsiaMoney polls.indiainfoline. India’ by FinanceAsia and the ‘Most improved brokerage. A network of over 2. Vision Sruti Suar(0906286019) Srusti Academy Of Management Page 12 .
Executive Nilesh Vikamsey Independent . BSE: 532636 Bloomberg: IIFL IN) India Infoline (Asia) Pte India Infoline wealth Management India Infoline Realty Commodities Mr Independent Director. Moneyline credit Investment India Infoline Marketing & Services India Infoline Mr. INDIA INFOLINE LTD.” Management Team R Venkataraman Nirmal Jain Chairman. India Infoline Sat Pal Khattar Non Executive . personalized services and cutting edge technology. India Infoline Media & Research India Infoline Housing Finance India Infoline Distribution nian Corporation chartered Accountant Services India Infoline Insurance services India Infoline Insurance Brokers CORPORATE STRUCTURE India Infoline Capital Sruti Suar(0906286019) Srusti Academy Of Management India Infoline Venture . (NSE: INDIAINFO.“Our vision is to be the most respected company in the financial services space. Service Managing DirectorDirector.Kranti Sinha Independen Director.” Mission “To become a full-fledged financial services company known for its quality of advice.
Money Tree Consultancy Services Sruti Suar(0906286019) Srusti Academy Of Management Page 14 . India Infoline Media and Research Services Limited India Infoline Commodities Limited India Infoline Marketing & Services India Infoline Investment Services Limited IIFL (Asia) Pte Limited India Infoline.com Distribution Services Ltd.(Corporate Overview – India Infoline Ltd.) The above chart does not cover all group companies India Infoline refers to India Infoline Ltd and its group companies.
two leading Indian commodities exchanges. India Infoline Investment Services Limited: Consolidated shareholdings of all the subsidiary companies engaged in loans and financing activities under one subsidiary. Indian as well as global. Their experience in securities broking empowered them with the requisite skills and technologies to allow them to offer commodities broking as a contra-cyclical alternative to equities broking. India Infoline Commodities Pvt Limited is engaged in the business of commodities broking. They enjoy memberships with the MCX and NCDEX. b) India Infoline Insurance Brokers Limited is a newly formed subsidiary which will carry out the business of Insurance broking. India Infoline Marketing & Services: India Infoline Marketing and Services Limited is the holding company of India Infoline Insurance Services Limited and India Infoline Insurance Brokers Limited. It is the largest Corporate Agent for ICICI Prudential Life Insurance Co Limited. commodities. and recently acquired membership of DGCX. a Singapore-based investment institution invested USD 76.7 million for a Sruti Suar(0906286019) Srusti Academy Of Management Page 15 . Revenue generation is through the sale of content to financial and media houses. we propose to also commence the general insurance distribution business. mutual fund and portfolio management services businesses. a) India Infoline Insurance Services Limited is a registered Corporate Agent with the Insurance Regulatory and Development Authority (IRDA). which is India's largest private Life Insurance Company. Recently. Post the grant of license. Orient Global. We have applied to IRDA for the insurance broking licence and the clearance for the same is awaited. India Infoline Commodities Limited.India Infoline Media and Research Services Limited: The content services represent a strong support that drives the broking. India Infoline was the first corporate agent to get licensed by IRDA in early 2001.
a) India Infoline Distribution Company Limited (distribution of retail loan products) b) Moneyline Credit Limited (consumer finance) c) India Infoline Housing Finance Limited (housing finance) IIFL (Asia) Pte Limited: IIFL (Asia) Pte Limited is wholly owned subsidiary which has been incorporated in Singapore to pursue financial sector activities in other Asian markets. sales force and events. Further to obtaining the necessary regulatory approvals.. This network. Money Tree Consultancy Services (MTCS) Is a group company of India Infoline Ltd. spread over 60 locations.com Distribution Services Ltd. India Infoline Investment Services Private Limited consists of the following step-down subsidiaries. Credit Cards and Non – Life Insurance. History & Milestones Sruti Suar(0906286019) Srusti Academy Of Management Page 16 . consumer finance business and housing finance business. distribution of retail loan products. is engaged in the distribution of financial products including fixed deposits. SME financing. insurance. focusing distribution on Home Loans. the company has been initially capitalized at 1 million Singapore dollars. Personal Loans. They have developed a retail distribution infrastructure (Investor Points) to support online presence. GoI Relief bonds.5% stake in India Infoline Investment Services. India Infoline.22. telephone. mutual funds and IPO's. This will help focused expansion and capital raising in the said subsidiaries for various lending businesses like loans against securities. MTCS extends the distribution reach of financial services providers by using alternate channels like the Internet. wireless.
indiainfoline. 2003 Launched proprietary trading platform Trader Terminal for retail customers. banks and companies. 2005 th Maiden IPO and listed on NSE. Launched Portfolio Management Service(august). 2004 Acquired commodities broking license (march).com.com on july.1995 Commenced operations as an Equity Research firm on 18 October 1995 as Probity Research and Services. Started distribution of life insurance on december and mutual fund on april. 2000 Launched online trading through www.5paisa. 1997 Launched research products of leading Indian companies. 2001 Became a depository participant of NSDL in September 2001. 1999 Launched www. key sectors and the economy Client included leading FIIs. BSE on may 17 Sruti Suar(0906286019) Srusti Academy Of Management Page 17 .
IIFL (Asia) Pte Ltd 2008 Launched IIFL Wealth Transitioned to insurance broking model.2006 Acquired membership of DGCX Launches exclusive SMS Value Added Services. Large firms’ in India by Dun & Bradstreet. Sruti Suar(0906286019) Srusti Academy Of Management Page 18 . Received membership of the Colombo Stock Exchange. Enters into strategic agreement with Saraswat Bank Launches stock trading on cell phones 2007 Commenced institutional equities business under IIFL Formed Singapore subsidiary. SEBI in-principle approval for Mutual Fund. Obtained Venture Capital license. 2009 Acquired registration for Housing Finance. 2010 Received in-principle approval for membership of the Singapore Stock Exchange.
Daily trading calls based on Technical Analysis. SERVICES OFFERINGS: Online BSE and NSE executions. Bullion Trading Bullion buying and selling IPO Funding Advising and facilitating financing on select IPOs based on our in-house research Loan Against Securities (Margin Funding ) Provide Overdraft facility against collateral of Shares/ MF units LAS Series (Term Loans) Provide Term Loan facility against collateral of Shares/ MF units Promoter Funding Provide Term Loan facility against collateral of Shares ESOP Funding Provide Term Loan/ Overdraft facility against collateral of Shares to be allotted to Employees. Sruti Suar(0906286019) Srusti Academy Of Management Page 19 . Portfolio Management Services Products that offer our clients unique risk-reward equations that are customised to their investment objectives Mutual Funds Advisory Research based recommendations on Top Picks in Mutual Funds Insurance Advisory Life & General Insurance Advisory Advise on Investment in Real Estate through Fund structure Real Estate Funds Advise on Investment in Real Estate through Fund structure Art Funds Advise on Investment in Art through Fund structure.PRODUCT OFFERINGS:Direct Equity and F & O Trading Providing in-house research based advice on selected stocks Structured Products Advise on Portfolio management Services. Personalized Advice Live Market Information. Daily Research Reports and Market Review (Market Mantra). Pre Market Report (Market Mantra by inserting proper dates). Free access to invest advice from IndiaInfoline’s Research team.
COMPETITORS:Sharekhan. IPO’S & Mutual Funds Distribution. Weaknesses Lack of a banking arm to complete the bank-broker-depository chain. Sruti Suar(0906286019) Srusti Academy Of Management Page 20 . Internet. Integrated technology platform.com” have developed into brands. SWOT ANALYSIS Strengths Original research. Pan .India distribution network. Motilal Oswal. Commodities Trading. “One Stop” shop.based Online Trading(TT-Manager). Karvy share broking. Insignificant presence in institutional segment. ICICI Direct.com” and “5paisa.Depository Services: De-mat and Re-mat Transactions. Derivatives Trading. “India Infoline. Angel broking.
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