Table no
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Growth in assets Reliance equity products Kotak equity products Tata equity products Reliance equity fund analysis Kotak equity fund analysis Tata equity fund analysis

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8 9 10 11 12 13

NAV of Reliance NAV of Kotak NAV of Tata Grades of risks and returns Company’s position Returns with BSE

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Chart no 1 2 3 4 Particulars Growth in assets NAV graph Returns of companies Risks of companies Page no 9 63 63 63

Chapter -1

Chapter-1 INTRODUCTION Mutual Funds . The money thus collected is then invested in capital market instruments such as shares. The income earned through these investments and the capital appreciations realized are shared by its .The Concept A mutual fund is a trust that pools the savings of number of investors who share a common financial goal. debentures and other securities.

professionally managed basket of securities at a relatively low cost. Thus a mutual fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified.unit holders on proportion to the number of units owned by them. The flow chart below describes broadly the working of a mutual fund: The following simple diagram shows the working of mutual fund: .

Advantages of Mutual Funds:  Professional Management  Diversification  Convenient Administration  Return Potential  Low Costs  Liquidity  Transparency  Flexibility  Choice of schemes  Tax benefits  Well regulated Disadvantages of Mutual Funds:  No control over the costs  No tailor made portfolios .


Both open-end and closed-end mutual funds were popular in these countries. Far East and Latin American countries. they were selling their shares in vessels and caravans. There was no insurance concept at that time.Chapter-2 INDUSTRY PROFILE The emergence of the concept of mutual funds dates back to the very emergence commercial activity in this world. The history of mutual funds in India can be broadly divided into four distinct phases. Mutual fund with respect to India: The mutual fund industry in India started in 1963 with the formation of Unit Trust of India. But actual mutual fund was started by Foreign and colonial government trust of London in 1868. it spread to Europe. at the initiative of the government of India and Reserve Bank. This was followed by the promotion of number of closed-end mutual funds in the USA. . In 1930s. they were exposed to greater risk. When Egyptians and Phoenicians started carrying the cargo on sea. In order to minimize the risk of carrying the cargo during rough weather and to minimize pirates on sea.

the mutual fund industry had assets under management of Rs. 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. At the end of 1988 UTI had Rs. 47.First Phase – 1964-1987: Unit Trust of India (UTI) was established on 1963 by an act of Parliament. SBI mutual fund was the first non-UTI mutual fund established in 1987 followed by Canbank mutual fund (Dec. 6700 crores of assets under management (AUM). The first scheme launched by UTI was Unit scheme 1964. Second Phase – 1987-1993 (Entry of public sector funds): 1987 marked the entry of non-UTI. At the end of 1993. 87). 89). LIC established its mutual fund in June 1989 while GIC had set up its mutual funds in December 1990. public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). Punjab national bank mutual fund (Aug.004 crores. Third phase – 1993-2003 (Entry Of Private Sector Funds): .

commercial bills accepted/co-accepted by banks. certificates or deposit and dated government securities having unexpired maturity upto one year. . The industry now functions under the SEBI (mutual fund) regulation 1996. The 1993 SEBI (mutual fund) regulations were substituted by a more comprehensive and revised mutual fund regulations in 1996. Also 1993 was the year in which the first mutual fund regulations came into being. 1. commercial paper. call and notice money. a new era started in the Indian mutual fund industry. 21. They can invest in treasury bills. The unit trust of India with Rs. 44 . there were 33 mutual funds with total assets of Rs.With the entry of private sector funds in 1993. giving the Indian investors a wider choice of fund families.805 crores. 541 crores of assets under management was way ahead of other mutual funds. As at the end of January 2003. In 1995. the RBI permitted private sector institutions to set up money market mutual funds (MMMFs).

29. 31. following the repeal of the Unit Trust of India act 1963. the assets of US 64 scheme. sponsored by SBI. assured return and certain other schemes. The second is the UTI mutual fund ltd. 2. One is the specified undertaking of the Unit trust of India with assets under management of Rs. PNB. BOB and LIC.The diagram below shows the three segments and some players in each segment: Fourth Phase – since February 2003: In February 2003. On 31st march 2006. there were 29 funds. . It is registered with the SEBI and functions under the mutual fund regulations. 2004. which manage assets of Rs. 835 crores as at the end of January 2003..UTI is India’s first mutual fund. The following are the major events in Indian mutual fund industry:1963 . India’s MF assets stood at Rs.862 crores. UTI was bifurcated into two separate entities. 1. representing broadly. 53. As at the end of September. 108 crores under 421 schemes.

The industry’s assets under management crosses Rs.1964 . 1996 . The following graph shows the amount invested in Mutual Fund Industry And The graph indicates the growth of assets over the years.US-64 scam lends to UTI overhaul. 1999 . 2003.PSU banks and insurers allowed to float mutual fund.Master index fund is the country’s first index fund. State Bank of India [SBI] first of the blocks. India’s first true mutual fund scheme launched. 2002 . 1986 . 2001 . 1992 .The take over of 20th century AMC by the Zurich mutual fund is the first acquisition in the mutual fund industry. Kothari Pioneer first private fund house to start operations SEBI set up to regulate industry.Private sector and foreign players allowed.The Harshad Mehta fuelled bull market arouses middle class interest in shares and mutual funds. 1998 . 1971 .UTI master share.UTI bifurcated comes under SEBI’s purview. 1.A GROWTH IN ASSETS UNDER MANAGEMENT .Morgan Stanley is the first foreign layer. fund of funds launched. 2000 . 1993 . 000 crores. 00. 1. 1987 . 1994 .SEBI’s mutual fund rules and regulations which form the basis of most current laws came in to force.UTI launches US-64.AMFI certification made compulsory fro new agents.ULIP (unit linked insurance plan) is second scheme was launched.

a need for Mutual Fund Association in India was generated to function as a non-profit organization. AMFI is an apex body of all Asset Management Companies (AMC) which has been registered with Securities Exchange Board of India (SEBI). 1995.Association of Mutual Funds in India (AMFI) With the increase in Mutual Fund players in India. Association of Mutual Funds in India (AMFI) was incorporated on 22nd August. Till date all the AMCs .

 It implements a programme of training and certification for all intermediaries and other engaged in the mutual fund industry.  AMFI undertakes all India awareness programme for investors in order to promote proper understanding of the concept and working of Mutual Funds. the Reserve Bank of India and other related bodies on matters relating to the Mutual Fund Industry.  This Mutual Fund Association of India maintains high professional and ethical standards in all areas of operation of the industry. The objectives of Association of Mutual Funds in India The Association of Mutual Funds of India works with 30 registered AMCs of the country.  Represent the Government of India. It functions under the supervision and Guidelines. Association of Mutual Funds India has brought down the Indian Mutual Fund Industry to a professional and healthy market with ethical lines enhancing and maintaining standards. It follows the principle of both protecting and promoting the interests of mutual funds as well as their unit holders.  AMFI interacts with SEBI and works according to SEBIs guidelines in the Mutual Fund industry.  It develops a team of well qualified and trained Agent distributors.are that have launched mutual fund schemes are its members. .  It also recommends and promotes the top class business practices and code of conduct.

 Canbank Investment Management Services Ltd.  Escorts Asset Management Ltd. Ltd. Ltd.  Cholamandalam Asset Management Co. Ltd.  Credit Capital Asset Management Co. Ltd.  UTI Asset Management Company Pvt. Ltd.  BOB Asset Management Co.  Jeevan Bima Sahayog Asset Management Co. Private Sector Indian: Benchmark Asset Management Co. Pvt. Ltd . Pvt.  Sahara Asset Management Co. Ltd.At last but not the least Association of Mutual Fund of India also disseminate information on Mutual Fund Industry and undertakes studies and research either directly or in association with other bodies The sponsors of Association of Mutual Funds in India Bank Sponsored  SBI Fund Management Ltd.  Reliance Capital Asset Management Ltd. Ltd.  JM Financial Mutual Fund  Kotak Mahindra Asset Management Co. Institutions  GIC Asset Management Co. Ltd.

 Alliance Capital Asset Management (India) Pvt. (India) Pvt. Predominantly Foreign Joint Ventures: ABN AMRO Asset Management (I) Ltd. Sundaram Asset Management Company Ltd.  ING Investment Management (India) Pvt.  Tata Asset Management Private Ltd.  Deutsche Asset Management (India) Pvt. Ltd. Ltd. Pvt.  Prudential ICICI Asset Management Co.  Morgan Stanley Investment Management Pvt. Ltd. Ltd. Pvt.  Standard Chartered Asset Mgmt Co.  DSP Merrill Lynch Fund Managers Limited  HDFC Asset Management Company Ltd.  Principal Asset Management Co. Ltd. Predominantly India Joint Ventures: Birla Sun Life Asset Management Co. . Ltd. Ltd.  HSBC Asset Management (India) Private Ltd. Ltd. Ltd.  Fidelity Fund Management Private Limited  Franklin Templeton Asset Mgmt.

The performance of the investments.4% during the rest of the decade. According to the current growth rate. 75. for the last one-year. equity in particular. 000 crores. And so equity and debt funds have attracted investments alike. Going by the above facts and generally. One is on the monthly basis and the other is quarterly.Association of Mutual Funds in India Publications: AMFI publishes mainly two types of bulletin. Future of Mutual Funds in India At the end of 2005 July. These publications are of great support for the investors to get intimation of the know how of their parked money. by year 2010. SEBI REGULATIONS ON MUTUAL FUNDS The Government brought Mutual Funds in the Securities market under the regulatory framework of the Securities and Exchange board of India (SEBI) in the year 1993. the total assets of all scheduled commercial banks should be Rs. In the last 5 years we have seen annual growth rate of 9%. 40. 1. . Small and big investors have both invested in instruments that have suited their needs. has however been disappointing for the investors. Indian mutual fund industry reached Rs. mutual fund assets will be double. The annual composite rate of growth is expected 13. 90. It is estimated that by 2010 March-end. 918 crores. mutual funds have often been considered a good route to invest and earn returns with reasonable safety.

With SEBI passing on the guidelines. The factor contributing to this the lack of understanding caused by improper guidance by the intermediaries. and it is really steep in some. Till now. Mutual funds are not just guilty of mismanaging their risks as the recent survey by Pricewaterhouse Coopers indicates but also not educating their investors enough on the risks facing them. even to the extent of 60-70 percent. Debt funds are safe investments and generate returns far in excess of what other socalled safe avenues such as banks generate. The guidelines state that funds will utilize the income earned on unclaimed money lying . the things are beginning to change now. It is for the Mutual benefit of the investors as well as mutual funds that investor is educated enough or else an agitated investor might route his investments to other avenues that are considered safe. Owing to volatility in market and profit warnings by some IT majors. Such backlash was only to be expected when funds. though good under conducive market conditions. This hurts the investor but then investments in equity are never safe. in a hurry to post good returns invested in volatile tech stocks. the funds will engage in investor education. tech stocks have been on the downhill journey and the result is fall in NAVs of most equity funds. less cared for. the inflow of funds in debt funds and banks is by no means comparable.The fall in NAVs of equity funds. Investor education has been one of the issues. is the point of rebuttal now. by the industry. Despite this. The move. has left investors disgusted. The industry focused upon the amounts and not why a person wanted to invest or whether a particular product suited him or not. While educating the customer might not have been on the cards earlier.

on their part. mutual funds form an important avenue for an investor. AMFI has started a certification program for intermediaries. Teaching an investor how to select a fund is thus an important aspect. It would thus be of critical importance to educate people for an informed investor is in the best position to pick up Schemes as per his need. It would not be improper to say that investor education is still the key to managing the funds handed over by investors. The investors are important to the industry and likewise.with them for a period exceeding three years to educate the investors. Educated investors can. investor education will remain a key issue for mutual funds in the longer run and educating the intermediaries will be the first step towards it. As it is. . An educated and informed intermediary stands the best chance of understanding the needs of the client and also of winning his confidence through proper guidance. This will be made mandatory for the intermediaries and is aimed at educating the investors about the risks attached to the schemes Till now. ask pertinent questions to find funds that qualify to be in their portfolio as per their risk bearing capacity. investors have been ignorant about the kind of fund to be picked or how to select a fund. This would also infuse some confidence in the minds of the investors who under the current scenario seem to be losing faith on account of the falls suffered in recent times.


3 Chapter.3 .CHAPTER .

structured products-all of which are supported by powerful research teams. . investment banking.COMPANY PROFILE ANANDRATHI: AnandRathi (AR) is a leading full service securities firm providing the entire gamut of financial services. corporate advisory. ethics and professionalism. Corporates and Institutions and was recently Ranked by Asia Money 2006 poll amongst South Asia's top 5 wealth managers for the ultra-rich. today has a pan India presence as well as an international presence through offices in Dubai and Bangkok. The firm’s philosophy is entirely client centric. In year 2007 Citigroup Venture Capital International joined the group as financial partner. The firm was founded in 1994 by Mr. with a clear focus on providing long term value additions to clients. The entire firm activities are divided across distinct client groups: Individuals. commodities. AnandRathi. Private Clients. mutual funds and insurance. while maintaining the highest standards of excellence. brokerage and distribution of equities. AR provides a breadth of financial and advisory services including wealth management.


• 1999: Lead managed first IPO and executed first M & A deal. • 2004: Commodities brokerage and real estate services introduced. Rs3000crores Management cross Retail Branch network expands across 100 locations within India. • 2003: Wealth Management assets cross Rs1500 crores • 2004: Commodities Wealth brokerage and real assets estate services introduced. • 1995: Set up a research desk and empanelled with major institutional investors. • 2002: Retail business expansion recommences with ownership model. • 2001: Initiated Wealth Management Services. • 1997: Retail brokerage services launched.• 1994: Started activities in consulting and Institutional equity sales with staff of 15. .

independent and unbiased advice to its . Establishes presence in over 350 locations. Its success lies in its philosophy of providing consistently superior. WOS acquires membership of Dubai Gold & Commodityexchange. Ranked amongst South Asia's top 5 wealth managers for the ultra-rich.9% equity stake . Ranked 9th in the Retail Category having more than 5% market locations within India.Wealth Management assets cross Rs3000crores Retail Branch network expands across 100 locations within India. Ranked 6th in FY2006 for All India Broker Performance in equity distribution in the High Net worth Individuals (HNI). share. Completes its presence in all States across the country with offices at 300+ • 2007: Citigroup Venture Capital International picks up 19. AnandRathi Mutual Funds: AnandRathi is one of India's top mutual fund distribution houses. • 2006: AR Middle East. Retail Branch network expands across 200 locations within India. • 2005: Real Estate Private Equity Fund Launched.

-Value-added services. They firmly believe in the importance of selecting appropriate asset allocations based on the client's risk profile. -Life and non-life insurance.  Mr. They have a dedicated mutual fund research cell for mutual funds that consistently churns out superior investment ideas. 2008. Delhi-Feb 07. Ratnesh Kumar as CEO. Manoj Shenoy as Executive DirectorSep 16. -Bonds. Institutional Equities-Feb 07. -Derivatives. -Banks and insurance companies. Latest news and events:  Anand Rathi financial services appoint Mr. picking best performing funds across asset classes and providing insights into performances of selected funds. families and corporate across India.clients backed by in-depth research. IPO’s -Mutual funds. . Products: -Equities. 2007.  Anand Rathi Securities Ltd promotes Mr. -Depository services. 2008. wealth management. -Individuals. -Non resident Indians. Clients: -Institutional clients including most leading mutual fund co’s. Nayan Sooda joins Anand Rathi Securities as director. -Commodities.

the firm offers to its clients the entire spectrum of financial services. distribution of mutual funds. 2007. 2006. Bangalore joins Anand rathi. Srikanth joins Anand Rathi securities as director. • Ranging from brokerage services in equities and commodities. IPO’s and • Insurance products.  Rakesh rawal head private wealth management. 2007. corporate finance and corporate advisory. merger and acquisitions. 2006 Anand Rathi cores and strengths: • In line with its client-centric philosophy.Deutsche bank. real estate.V. • Clients deal with a relationship manager who leverages and brings together the product specialists from across the firm to create an optimum solution to the client needs. wealth management.Apr 03. Mumbai-sep 16. investment banking.  Citigroup venture capital international is picking up 19.  Anand rathi launches Chandigarh office. . 2007  Anand Rathi launches Chandigarh Office-Oct 09. – Mar 23.Oct 09. A.9% stake in Anand Rathi Securities Ltd. Mr.

PRADEEP GUPTA – Vice Chairman Plus 17 years of experience in financial Services Mr. AMIT RATHI – Managing Director . The aim is however common . In-DepthResearch: Our research expertise is at the core of the value proposition that we offer to our go far deeper than others. Mr. to deliver incisive insights and ideas and be accountable for results. Research teams Across the firm continuously track various markets and products. Mr. Management team: Its senior management comprises a diverse talent pool that brings together rich experience from across industry as well as financial services. ANAND RATHI – Group chairman Chartered Accountant Past President.ManagementTeam: AR brings together a highly professional core management team that comprises of individuals with extensive business as well as industry experience. BSE Held several Senior Management positions with one of India’s largest industrial groups.

• TATA Mutual Fund. They are.Chartered Accountant & MBA Plus 11 years of experience in Financial Services. 93. • Kotak Mutual Fund. • Reliance Mutual Fund. COMPETITORS OF EQUITY MUTUAL FUNDS: I have taken just three among the competitors in the field of equity mutual funds. . Reliance Mutual Fund (RMF) is one of India’s leading Mutual Funds.532 crore (AUM as on 29th Feb 08) and an investor base of over 65.73 lakhs. with Assets Under Management (AUM) of Rs.

private equity and proprietary investments. Reliance Mutual Fund constantly endeavors to launch innovative products and customer service initiatives to increase value to investors. Reliance Capital Ltd. Vision Statement: “To be a globally respected wealth creator with an emphasis on customer care and a culture of good corporate governance. in terms of net worth. is one of India’s leading and fastest growing private sector financial services companies.” Reliance Capital Ltd.37% of the paid-up capital of RCAM.Anil Dhirubhai Ambani Group. life and general insurance. the balance paid up capital being held By minority shareholders. is one of the fastest growing mutual funds in the country.Reliance Mutual Fund. RMF offers investors a well-rounded portfolio of products to meet varying investor requirements and has presence in 115 cities across the country.” Mission Statement: “To create and nurture a world-class. “Reliance Mutual Fund schemes are managed by Reliance Capital Asset Management Limited. and ranks among the top 3 private sector financial services and banking companies. high performance environment aimed at delighting our customers. a part of the Reliance . has interests in asset management. which holds 93.” . stock broking and other financial services. a subsidiary of Reliance Capital Limited.

1996. Pursuant to this IMA. a subsidiary of Reliance Capital Limited.” Reliance Capital Asset Management Limited (RCAM) was approved as the Asset Management Company for the Mutual Fund by SEBI vides their letter no IIMARP/1264/95 dated June 30. The net worth of the Asset Management Company including preference shares as on March 31. Reliance Mutual Fund has launched thirty-two Schemes till Date. 1996.Reliance Capital Asset Management Limited (RCAM). a company registered under the Companies Act. RCAM is authorized to act as Investment Manager of Reliance Mutual Fund. 1995 and was amended on August 12.152. 1997 in line with SEBI (Mutual Funds) Regulations. namely: . which hold 93. The net worth of the Asset Management Company including preference shares as on September 30.113. "Reliance Mutual Fund schemes are managed by Reliance Capital Asset Management Limited. The Mutual Fund has entered into an Investment Management Agreement (IMA) with RCAM dated May 12. RCAM is authorized to act as Investment Manager of Reliance Mutual Fund. Pursuant to this IMA. 1995. Reliance Mutual Fund has launched thirty-five Schemes till Date namely. 1956 was appointed to act as the investment manager of Reliance Mutual Fund. The Mutual Fund has entered into an Investment Management Agreement (IMA) with RCAM dated May 12.37% of the paid-up capital of RCAM. 1995. 2005 is Rs. Reliance Capital Asset Management Limited (RCAM) was approved as the Asset Management Company for the Mutual Fund by SEBI vides their letter no IIMARP/1264/95 Dated June 30.59 crores. the balance paid up capital being held By minority shareholders.. 1997 in line with SEBI (Mutual Funds) Regulations. 1995 and was amended on August 12.02 crores. 2007 is Rs.

Reliance Mutual Fund was formed to launch various schemes under which units are issued to the Public with a view to contribute to the capital market and to provide investors the opportunities to make investments in diversified securities. 1995. IMD/PSP/4958/2004 date 11th. March 2004 vide SEBI's letter no. as the Settler/Sponsor and Reliance Capital Trustee Co. . The name of Reliance Capital Mutual Fund has been changed to Reliance Mutual Fund effective 11th. 1882 with Reliance Capital Limited (RCL). Limited RMF has been registered with the Securities & Exchange Board of India (SEBI) vide registration number MF/022/95/1 dated June 30.B Reliance Growth Fund (September 1995) Reliance Vision Fund (September 1995) Reliance Liquid Fund (March 1998) Reliance Short Term Fund (December 2002) Reliance Banking Fund (May 2003) Reliance Diversified Power Sector Fund (March 2004) Reliance Floating Rate Fund (August 2004) Reliance NRI Equity Fund (October 2004) Reliance Index Fund (February 2005) Reliance Regular Savings Fund (May 2005) Reliance Tax Saver (ELSS) Fund (July 2005) Reliance Equity Fund (February 2006) Reliance Fixed Horizon Fund (April 2006) Reliance Fixed Horizon Fund II (November 2006) Reliance Long Term Equity Fund (November 2006) Reliance Interval Fund (March 2007) Reliance Income Fund (December 1997) Reliance Medium Term Fund (August 2000) Reliance Gilt Securities Fund (July 2003) Reliance Monthly Income Plan (December 2003) Reliance Pharma Fund ( May 2004) Reliance Media & Entertainment Fund (September 2004) Reliance NRI Income Fund (October 2004) Reliance Equity Opportunities Fund (February 2005) Reliance Liquidity Fund (June 2005) Reliance Fixed Tenor Fund (November 2005) Reliance Fixed Horizon Fund I (August 2006) Reliance Fixed Horizon Fund III (March 2007) Reliance Liquid Plus Fund (March 2007) Reliance Long Term Equity Fund (Nov 2006) The Mutual Fund: Reliance Mutual Fund (RMF) has been established as a trust under the Indian Trusts Act. March 2004.1.

Equity Growth Schemes: The aim of growth funds is to provide capital appreciation over the medium to longterm. ♣ To deploy Funds thus raised so as to help the Unit holders earn reasonable returns on their savings and ♣ To take such steps as may be necessary from time to time to realize the effects without any limitation. Such funds have comparatively high risks. The mutual funds also allow the investors to change the options at a later date. Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time. capital appreciation. and the investors may choose an option depending on their preferences.The main objectives of the Trust are: ♣ To carry on the activity of a Mutual Fund as may be permitted at law. . These schemes provide different options to the investors like dividend option. Such schemes normally invest a major part of their corpus in equities. etc. The investors must indicate the option in the application form.

VISION STATEMENT:  The global Indian financial service brand: – Kotak customer will enjoy the benefits of dealing with a global Indian brand that best understands their needs and delivers.  customized pragmatic solutions across multiple platforms. Kotak will be a world class Indian financial services group. Their technology and best practices will be benchmarked along international lines while their understandings of customers.  The most preferred employer in financial services: - a culture of empowerment and a spirit of enterprise attract bright minds like with an entrepreneurial streak to join the Kotak and stay with Kotak. Working with a home – grown, professionally-managed company, which has partnerships with internationally does, gives their people a perspective that is universal as well as unique.  The most trusted financial services company: - Kotak will create an ethos of trust across all their constituents. Adhering to high standards of compliance and corporate governance will be an integral part of building trust.  Value creation: - value creation rather than size alone will be their business driver.

Key employees:

Ajay Bagga, CEO, Kotak Mahindra Mutual Fund, held the position of National Head, Sales, Distribution and Business Development at the erstwhile Pioneer ITI Asset Management Company Ltd. Prior to joining Kotak Mahindra Asset Management Company on 27th February 2004, Mr. Bagga headed Marketing for the credit card Joint Venture between GE Capital and SBI Cards, a role he held for a year and a half. Mr. Sandesh Kirkire is the Chief Executive Officer of Kotak Mahindra Asset Management Company. He moved into this role in May 2005. Mr. Kirkire joined the Kotak Group in 1994, and has 15 years of in-depth knowledge and hands-on experience related to fund management, corporate finance, proprietary trading, investment banking and treasury. Prior to joining Kotak, Mr. Kirkire worked with SBI Capital Markets Limited and ITC Bhadrachalam Finance & Investments Limited. Mr. Kirkire, 41, is a Mechanical Engineer and holds a Masters Degree in Management from Jamnalal Bajaj Institute of Management.

Backed by one of the most trusted and valued brands in India, Tata Mutual Fund has earned the trust of lakhs of investors with its consistent performance and world-class service. Tata Mutual Fund manages around Rs. 23,252.02 crores (as on February 29, 2008) worth of assets across its varied offerings. Tata Mutual Fund offers an investment option for everyone, whether you are a businessman or salaried professional, a retired person or housewife, an aggressive investor or a conservative capital builder. The Tata Asset Management philosophy is centered on seeking consistent, long-term results. Tata Asset Management aims at overall excellence, within the framework of transparent and rigorous risk controls. We constantly benchmark our efforts against these tenets of performance: Consistency: We strive to deliver consistent results through our value-based investing methodology, keeping alive the credo of the late doyen of the Tata Group, Mr. J.R.D. Tata, that money received from the people should go back to them several times over. Flexibility: Tata Mutual Fund offers investors a broad range of managed investment products in various asset classes and risk parameters. Stability: Our commitment to the highest quality of service and integrity is the foundation upon which we build trust with our clients.

Service: We offer a wide range of services to assist investors have a fulfilling and rewarding financial planning experience with us. We have designed our services keeping in mind the needs of our investors, giving them a smooth and hassle-free financial planning process. A Proud Pedigree: Tata Asset Management Ltd is a part of the Tata group, one of India's largest and most respected industrial groups, renowned for its adherence to business ethics.

This way. Leveraging this asset to enhance Group synergy and becoming globally competitive is the route to sustained growth and long-term success.The Group has always believed in returning wealth to the society that it serves. globalization with national interests and core businesses with emerging ones. which have created a host of national institutions in the natural sciences. Thus. The trusts also give substantial annual grants and endowments to deserving individuals and institutions in the areas of education. energy and the arts. it fulfils its long-standing commitment to improving the quality of life of its stakeholders. representing leadership with trust.4 . the Tata Group aims to be the largest and most respected global brand from India. is held by philanthropic trusts. nearly two-thirds of the equity of Tata Sons. healthcare and social uplift. medical care. The Tata name is a unique asset. By combining ethical values with business acumen. the Group's promoter company. Chapter.

 Government sponsored loan bonds for carrying out specific infrastructural and other projects. viz.MUTUAL FUND PRODUCTS Mutual fund product includes mainly corporate. ♣ Open – end mutual funds.  Securities. However elements of marketing are helpful in developing a good marketing plan. Equity shares and Debentures.  Other approved securities such as money market instruments like Treasury Bills. The products cited above are sold to the investors with different schemes. . ♣ Closed – end mutual funds. Commercial Papers etc… Each mutual fund will design its own marketing plan for its products..

♣ Sector mutual funds.end mutual funds: A closed end mutual fund has a set number of shares issued to the public through an initial public offering. These funds have a stipulated maturity period generally ranging from 3 to 15 years. ♣ Balanced fund. ♣ Growth funds. ♣ Exchange traded funds.♣ Large cap funds. ♣ Mid cap funds. ♣ Equity mutual funds. ♣ Fund of funds. ♣ Value funds. ♣ International mutual funds. ♣ Regional mutual fund. . ♣ Index funds. Closed. ♣ No load mutual funds. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where they are listed. ♣ Money market mutual funds. 1. The fund is open for subscription only during a specified period.

Open end funds keep some portion of their assets in short term and money market securities to provide available funds for redemptions. each mutual fund has its own classification for small and medium sized companies. Those companies that have a market capitalization between Rs. 500 crore are classified as small.2. or . Open.end funds: An open end mutual fund is a fund that does not have a set number of shares. As there is no standard definition classifying companies as small or medium. Different mutual funds have different criteria for classifying companies as large cap. companies with a market capitalization in excess of Rs. 500 crore and Rs. 5. Stocks represent part ownership. A large portion of most mutual funds is invested in highly liquid securities. Large cap funds: Large cap funds are those mutual funds. Generally.1000 crore are known large cap companies.1000 crore are classified as medium sized. It invests pooled amounts of money in the stocks of public companies. 3. which invest in small/medium sized companies. Equity mutual funds: Equity mutual funds are also known as stock mutual funds. It continues to sell shares to investors and will buy back shares when investors wish to sell units are bought and sold at their current asset value. Mid cap funds: Mid cap funds are those mutual funds. which seek capital appreciation by investing primarily in stocks of large blue chip companies with above-average prospects for earning growth. 4. which enables the fund to raise money by selling securities at prices very close to those used for valuations. Generally companies with a market capitalization of up to Rs.

load mutual funds and no load mutual funds. They focus on those companies. rather than companies that pay out dividends. in companies. Load mutual funds are those funds that charge commission at the time of purchase or redemption. No load mutual funds: Mutual funds can be classified in to two types. to provide both income and capital appreciation while avoiding excessive risk. . preferred stock. bonds and short term bonds. which are experiencing significant earnings or revenue growth. 7. Exchange traded funds: Exchange traded funds represent a basket of securities that are traded in an exchange. 6. Front end load funds charge commission at the time of purchase and back end load funds at the time of redemption. 8. Growth funds look for the fastest growing companies in the market. It is a type of mutual fund that buys combination of common stock. Stocks are often categorized by their market capitalization and can be classified in to 3 basic sizes as small medium and large. Growth funds: Growth funds are those mutual funds that aim to achieve capital appreciation by investing in growth stocks. (b) Back end load funds. and the aim of stock ownership is to see the value of the companies increase over time.equity. They can be further classified in to. Balanced fund: Balanced fund is also known as hybrid fund. 9. (a) Front end load funds. An ETF will invest in either all of the securities or a representative sample of the .

13. If investments are chosen carefully. and often choose investments providing dividends as well as capital appreciation. International mutual funds: International mutual funds are those mutual funds that invest in non-domestic securities markets through out the world. The investment objective of an ETF is to achieve the same return as a particular market index. and stocks that have fallen out of favour with mainstream investors. international mutual fund may be profitable when some markets are rising and others are declining.securities included in the index. Money market mutual funds: A money market mutual fund is a mutual fund that invests solely in money market instruments. Investing in international markets provides greater portfolio diversification and let you capitalize on some of the world’s best opportunities. Value funds: Value funds are those mutual funds that tend to focus on safety rather that growth. Treasury bills make up the bulk of money market instruments. 10. They invest in companies that the market has overlooked. 11. either due to changing investor preferences. Regional mutual fund: Regional mutual fund is a mutual fund that confines itself to investments in securities from a specified geographical area. usually. Money market instruments are forms of debt that mature in less than one year and are very liquid. . The objective is to take advantage of regional Growth potential before the national investment community does. Securities in the money market are relatively risk free. the fund’s local region. 12. A regional mutual fund generally looks to own a diversified portfolio of companies based in and operating out of its specified geographical area.

These funds tend to be more potential. which have strong growth potential. utilities. But on the flipside. These funds volatile than funds holding a diversified portfolio of securities in many industries. health care. expense fees on fund of funds are typically higher than those on regular funds because they include part of the expense fees charged by the underlying funds. Such concentrated portfolios can produce tremendous gains or losses. depending on whether the chosen sector is in or out of favour. pharmaceuticals etc. 15. FOF are designed to achieve greater diversification than traditional mutual funds. An S & P stock index fund owns 500 stocks. Just as mutual fund invests in a number of different securities. 16. The most popular index of stock index funds is the standard & Poor’s 500. Fund of funds: A fund of fund is a type of mutual fund that invests in other mutual funds. Index funds: An index fund is a type of mutual fund that builds its portfolio by buying stock in all the companies of a particular index and thereby reproducing the performance of an entire section of the market. Equity products of taken three companies: Reliance mutual fund products: . Sector mutual funds: Sector mutual funds that restrict their investments to a particular segment or sector of the economy.all the companies that are included in the index. the idea is to allow investors to place bets on specific industries or sectors. a fund of funds holds shares of many different mutual funds.14. These funds concentrate on one industry such as infrastructure.

Reliance Growth Fund (September 1995) Reliance Income Fund (December 1997) Reliance Medium Term Fund (August 2000) Reliance Gilt Securities Fund (July 2003) Reliance Monthly Income Plan (December 2003) Reliance Pharma Fund ( May 2004) Reliance Media & Entertainment Fund (September 2004) Reliance NRI Income Fund (October 2004) Reliance Equity Opportunities Fund (February 2005) Reliance Liquidity Fund (June 2005) Reliance Fixed Tenor Fund (November 2005) Reliance Fixed Horizon Fund I (August 2006) Reliance Fixed Horizon Fund III (March 2007) Reliance Liquid Plus Fund (March 2007) Reliance Long Term Equity Fund (Nov 2006) Reliance Vision Fund (September 1995) Reliance Liquid Fund (March 1998) Reliance Short Term Fund (December 2002) Reliance Banking Fund (May 2003) Reliance Diversified Power Sector Fund (March 2004) Reliance Floating Rate Fund (August 2004) Reliance NRI Equity Fund (October 2004) Reliance Index Fund (February 2005) Reliance Regular Savings Fund (May 2005) Reliance Tax Saver (ELSS) Fund (July 2005) Reliance Equity Fund (February 2006) Reliance Fixed Horizon Fund (April 2006) Reliance Fixed Horizon Fund II (November 2006) Reliance Long Term Equity Fund (November 2006) Reliance Interval Fund (March 2007) Kotak Mutual Fund products: Kotak 30 (D) Kotak 30 (G) Kotak Balance Kotak Bond .Regular Plan (Bonus) .Deposit Plan (G) Kotak Bond .Deposit Plan (D) Kotak Bond .

Regular Plan (Div-Q) Kotak Bond .Regular Plan (Div-A) Kotak Bond .Regular Plan (G) Kotak Bond .Kotak Bond .Short Term Plan (G) Kotak Cash Plus (Div-M) Kotak Cash Plus (G) Kotak Contra (D) Kotak Contra (G) Kotak Dynamic FOF (G) Kotak ELSS (D) Kotak ELSS (G) Kotak equity FOF(D) Kotak Equity FOF(G) TATA Mutual Fund products: ♣ ♣ ♣ ♣ ♣ ♣ ♣ ♣ ♣ ♣ ♣ ♣ ♣ Tata Pure Equity Fund Tata Tax Saving Fund Tata Select Equity Fund Tata Life Sciences & Technology Fund Tata Equity Opportunities Fund Tata Index Fund Tata Growth Fund Tata Equity P/E Fund Tata Dividend Yield Fund Tata Infrastructure Fund Tata Service Industries Fund Tata Mid Cap Fund Tata Contra Fund .Short Term Plan (D) Kotak Bond .

♣ ♣ ♣ ♣ ♣ Tata Tax Advantage Fund 1 Tata Equity Management Fund Tata Capital Builder Fund Tata Indo-Global Infrastructure Fund Tata Growing Economies Infrastructure Fund Chapter-5 .

5 RESEARCH DESIGN Design of the study: A detail study is done on various Investment Schemes of Mutual Fund.Chapter. Title of the study: . Where it is useful to the investors to mobilize the savings in the respective schemes provided by the Company. Analysis is done on the Risk and Returns of Equity Scheme provided by the organization.

 The study was limited to just finding the risk and returns associated with the one scheme.  The study covers only the open-ended fund.“RISKS AND RETURNS OF MUTUAL FUNDS” STATEMENT OF THE PROBLEM: “An Overview of Mutual Fund Industry in India & Evaluation study on Risk and Returns of Mutual Fund scheme in comparison with its respective Benchmark Indices” NEED FOR THE STUDY: The evaluation study of risk and returns of Equity and Growth Schemes of Kotak Mutual Fund is useful to know the performance of scheme and it helps the investors to invest in Mutual Fund schemes either. SCOPE OF STUDY: Scope of study means what are the areas of the study. 2008. The performance of different schemes however helps the prospective investors to choose the best schemes that suit his objective. Debt or Balanced.  The study conducted in AnandRathi based on the information furnished by the organization.  The study covers the period of past three months from January 1. In other words it means the risks and returns that will be faced by the various mutual funds in the market.Equity. .  The study does not cover the other schemes of mutual funds.  The study covers the one scheme for Quarterly bases. 2008 to April 1.

The Project is a “finance project” which tries to explain about the history. To know the growth of mutual funds. In the study only three mutual fund companies have been considered. A Research design is a method and procedure for acquiring information needed to solve the problem. A research design is the basic plan that helps in the data collection or analysis. It specifies the type of information to be collected the sources and data collection procedure. To understand the pros and cons of mutual funds. To analyze the risks and ret urns of mutual funds in general. growth & pros and cons of investing in Mutual Funds and the second part of it deals with the analysis of risk & returns. To suggest some measures to maximize return in minimum risk. To know the way of investing in mutual funds. . OBJECTIVES OF THE STUDY: The study relating to mutual funds has the following objectives: • • • • • • To know the history of Anand Rathi.

RESEARCH METHODOLOGY: . In this research an attempt has been made to analyze the past performance of the Mutual schemes and to know the benefits to the investors. The study is done on different schemes provided by the company to know the company’s performance for the past few months and to know the risk and returns of the funds. They are: 1. 2. TOOLS & TECHNIQUES USED FOR THE STUDY To analyze the data in the project various statistical tools are used. X = Quarterly return of Index. N = Number of Observations. β = Beta of the fund. rf = risk free rate.METHOD OF RESEARCH DESIGN USED UNDER STUDY IS: DESCRIPTIVE RESEARCH: Descriptive research is study of existing facts to come to a conclusion. Y = Quarterly return of the NAV. β= portfolio beta. Treynor Ratio: Τ= rp-rf/β T= Treynor ratio’s rp = portfolio return. Beta: β= NΣxy-(Σx) (Σy) /NΣx2-(Σx) 2.

Secondary Data: Besides the primary data.N.  Etc… Limitations of the study:  The study was limited only to ANANDRATHI MUTUAL FUND products. 2. Mr. Company advertisements. The information about the risks and returns has been gathered from branch manager of Anand Rathi in Tumkur. the detail of introduction of the risks and returns of mutual funds is given in the forthcoming chapters of the project. Primary Data: The basic or preliminary information is collected through face to face interaction with the manager. secondary data is required for Analysis and the same was collected through the following sources  Internet  Brochures  Bulletins. Tumkur district. .It is the scientific way of collection of data or information needed to carry out the project work.  Net asset values issued by companies to the chief representative. The data is collected in the two ways are also known as methods or sources of data. The information is mainly needed for analysis and comparison of data with reference to mutual funds schemes. 1. Anand Rathi.Rajashekar. Public leaflets.

So no any great research was done. Out of many schemes only one has been taken for analysis.  The study of returns has been calculated by one method.  The study has been done on equity diversified scheme out of many schemes.  The study was limited to the extent of just finding the risks and returns of one scheme of the fund on quarterly bases. Chapter-6 .  The study has been done on only three mutual fund companies of India.

1003 as “a fund established in the form of a trust by a sponsor. analyzes the risk associated with a particular security.” OPERATIONAL DEFINITIONS OF THE CONCEPT RISK: The dictionary meaning of risk is the possibility of loss or injury. under one or more schemes. The money thus collected is then invested in capital market instruments such as shares. . The down side of risk may be caused by several factors. to raise monies by the trustees through the sale of units to the public. Mutual fund is defined by securities and exchange board of India (mutual funds) regulations. Investor in general would like to analyze the risk factors and a through knowledge of a risk helps him to plan his portfolio in such a manner so as to minimize risk associated with the investment. before investing his/her investible wealth in the security.Chapter-6 THEORETICAL BACKGROUND Mutual funds: Meaning: A mutual fund is trust that pools the savings of a number of savings of a number of investors who share a common financial goal. debentures and other securities. either common to all securities or specific to a particular security. Any rational investor. The actual return he receives from a security may vary from his expected return and the risk is expressed in term of variability of return. for investing in securities in accordance with these regulations.

Market Risk 2. changes in the customer preference. availability of raw material. The unsystematic risk. Financial Risk . Unsystematic Risk: The unsystematic risk is unique and peculiar to a firm or an industry. Broadly. The nature and magnitude of the above-mentioned factors differ from industry to industry. and company to company. Systematic Risk: The systematic risk affects the entire market. Business Risk 2. The investor cannot avoid them.Risk consists of two components:   The systematic risk. and labour problems. technological change in the production process. unsystematic risk can be classified into: 1. Unsystematic Risk stems from managerial inefficiency. The economic conditions. This is subdivided into: 1. Purchasing Power Risk. They have to be analyzed separately for each industry and firm. These factors are beyond the control of the corporate and the investor. Interest Rate Risk 3. political situations and the sociological changes affect the security market.

5 percent change in the security return. The statistical tools used to quantify risk are: I. Measurements cannot be assured of cent percent accuracy because risk is caused by numerous factors such as social.  Beta = + 0. Beta: Beta describes the relationship between the securities return and the index returns  Beta = + 1. standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility (risk). When there is a decline of 10% in the market . Standard Deviation: ♣ A measure of the dispersion of a set of data from its mean. the higher the deviation. economic and managerial efficiency. The security is less volatile compared to the market. political. Standard deviation can also be calculated as the square root of the variance.Risk Measurement: Understanding the nature of risk is not adequate unless the investor or analyst is capable of expressing it in some quantitative terms. A volatile stock would have a high standard deviation.0 One percent change in the market index return causes 2 percent change in the security return. It indicates that the security moves in tandem with the market.  Beta = + 2. ♣ In finance.5 One percent changes in the market index return causes 0. In mutual funds. the standard deviation tells us how much the return on the fund is deviating from the expected normal returns. The more spread apart the data is. The security return is more volatile.0 One percent change in market index returns causes exactly one percent change in the security return.

represented by the ownership of one unit in the fund. the security with beta of 2 would give a negative return of 20%. if the market return declines by 10% and vice-versa. This gives rise to the concept of net asset value per unit. if the fund is dissolved or liquidated. RATE OF RETURN: The compounded annual return on a mutual fund scheme represents the return to investors from a scheme since the date of issue. On price basis it reflects the return to investors by way of market or repurchase price. It is calculated simply by dividing the net asset value of the fund by the number of units. ignoring the “per unit”. The security with more than 1 beta value is considered to be risky. by selling off all the assets in the fund. A security with a negative beta of -1 would provide a return of 10%. which is the value. In other words. most people refer loosely to the NAV per unit as NAV. Net Asset Value (NAV): The net asset value of the fund is the cumulative market value of the assets fund of its liabilities. We also abide by the same convention.  Negative Beta Negative beta value indicates that the security return moves in the opposite direction to the market return. On NAV basis it reflects the return generated by the fund manager on NAV. However. Computation of Net Asset Value . this is the amount that the shareholders would collectively own.return. It is calculated on NAV basis or price basis.

or such other formula as may be prescribed by SEBI from time to time. A unit is the currency of a fund what share is to a company. Fund houses levy nominal shares. Market /Fair value of scheme’s investments + Receivables + Accrued Income + Other Assets – Accrued Expenses – Payables-Other liabilities NAV= _____________________________________________________ Number of Units Outstanding Some important terms with respect to mutual funds: • Corpus: The total money available with a scheme at any point of time is referred to as the ‘corpus’ or assets under management. This charge is referred to as load and it is the prices you pay over and above the funds NAV when you buy or sell units. It is not the exact prices are which investors enter or exit the scheme. invests this corpus in various securities in line with its stated objectives. on most of their schemes to meet their processing costs and to discourage investors from leaving. The NAV shall be calculated in accordance with the following formula. on your and other investor’s behalf. • Unit: Your mutual fund issues you units against your investment. You pay and ‘entry load’ at time of buying units. • Expenses: . a unit is to a fund. • Load: Although the NAV represents the schemes current value.The Net Asset Value (NAV) of the units will be determined as of every working day and for such other days as may be required for the purpose of transaction of units. You pay and ‘exit load’ at the time of selling. The mutual fund.

Annual reports disclosing the complete portfolio of all their schemes performance over various time periods and how it stands up in given market condition. Fund managers have to be paid a fee. as do the other constituents involved in managing your money. and mail you cheque within there to five days. • Disclosure: From time to time your fund will share with you information relating to your scheme. fund houses have to send to all unit holders. it is sale from your point of view in mutual fund parlance it is called ‘repurchase’ or ‘redemption’ you will have to fill another form and mutual funds will pay you the schemes NAV on the prevailing minus the exit load. Most fund houses update their schemes portfolio on the websites even quicker the norm being on monthly basis. partly fully to your fund. • Redemption: When you sell your units. .This is the fund charges you for managing your money. Under SEBI rules.


. Secondary Data : Besides the primary data. 2006. secondary data is required for Analysis and the same was collected through the following sources  Internet  Brochures  Bulletins  Company advertisements  Public leaflets.  Etc… Type of Scheme Launch Date Fund Objective An open-ended equity fund(diversified) February 07.  Net asset values issued by companies to the chief representative. Objective of the scheme is to seek to generate capital appreciation and provide long-term growth opportunities by investing in a portfolio constituted of equity & equity related securities of top 100 companies by market capitalization and of companies which are available in the derivatives segment from time to time.The analysis and interpretation is done on the secondary data that is NAV of the equity mutual fund scheme of the different mutual fund companies.

1/. 2004. August 25. it will invest a minimum of 75% of net assets in equities.thereafter. Liquidity Options Available Load Structure NAV calculation on all business days. Investments under this scheme will be made only in equities of growth value stocks. * Investment by the scheme in Securitised debt will not normally exceed 50% of the debt components. Proportion ** % of funds available Risk Profile Likely Around (%) . 000/.5. Growth & Dividend Entry Load: Nil * Exit Load : For Retail Plan for subscriptions of less than Rs 5 Crs per purchase transaction :1% if redeemed/switched on or before completion of 1 year from the date of allotment :nil if redeemed/switched after completion of 1 year from the date of allotment For subscriptions of more than Rs 5 Crs per purchase transaction: Nil For Institutional Plan . The objective of the scheme will be to provide income distribution and/or medium to long term capital gains while at all times emphasizing the importance of capital appreciation. Asset Allocation Instrument Proportion ** % of funds available Risk Profile Likely Around (%) Equity & Equity Related Debt *(Including Money Market) 75-100 High 0-20 Low to Medium ** At the time of investment.Fund Investment Strategy REF is mandated to invest in the top 100 companies by market capitalisation or stocks traded in the futures and the options segment. At any time. Kotak Opportunities (Open Ended Equity Scheme) Type of Scheme Launch Date Fund Objective Fund Investment Strategy Asset Allocation Instrument An open-ended equity fund. It has a flexible investment strategy that can respond to changes in the stock market valuations by short-selling.Nil Minimum Application Amount Rs.& in multiples of Re.

Minimum Application Amount Initial : Rs. Investments under this scheme will be made only in equities of growth value stocks.1000/- Type of Scheme Launch Date Fund Objective Fund Investment Strategy Asset Allocation An open-ended equity fund. Exit Load 1% for investment less than 5 crores if exit within 6 months from the date of allotment and 0. 5000/Additional : Rs.25% Exit Load : 1.Equity & Equity Related Debt *(Including Money Market) 70-100 High 0-20 Low to Medium ** At the time of investment.25% for investments upto Rs. Growth. 1993. * Investment by the scheme in Securitised debt will not normally exceed 50% of the debt components. Liquidity Options Available Load Structure NAV calculation on all business days.00% Entry load of 2. Dividend Payout. The objective of the scheme will be to provide income distribution and/or medium to long term capital gains while at all times emphasizing the importance of capital appreciation.50% if the units are redeemed after 6 months but within 1 year. 5 Crores.1000/Systematic : Rs. Proportion ** % of funds available Risk Profile Likely Around (%) Equity & Equity Related 80-100 High Instrument . February 25. Dividend Re-Investment Entry Load: 2.

8593 -0. * Investment by the scheme in Securitised debt will not normally exceed 50% of the debt components.8593 21.4609 21.Debt *(Including Money Market) 0-20 Low to Medium ** At the time of investment. Liquidity Options Available Load Structure NAV calculation on all business days.1/.2 crores: Nil.5.53 -0.41 -2.53 -2. For each investment amount greater than or equal to Rs.Dividend Plan .8593 21.42 31 Mar 2008 31 Mar 2008 31 Mar 2008 31 Mar 2008 31 Mar 2008 Growth Plan Bonus Option Growth Plan Growth Option Institutional Plan . 2crores: 1% if redeemed on or before expiry of 6 months from the date of allotment.53 -0.thereafter.& in multiples of Re.42 -2.42 -2. Growth & Dividend Entry Load: For investment amount greater than or equal to Rs.8593 21.25% Exit Load For each investment amount of less than Rs.42 -2.Bonus Plan Institutional Plan .53 -0. For investment amount less than Rs. 000/. Minimum Application Amount Latest NAV of Reliance Equity fund: Scheme Plan Dividend Plan NAV Change %Change NAV Date Reliance Equity Opportunities Fund 17.2 crores: 2.42 -0.2 crores: Nil Rs.

Kotak Opportunities (Open Ended Equity Scheme) Latest NAV of Kotak opportunities equity fund: Scheme Name NAV Date NAV Kotak Opportunities Growth Kotak Opportunities Dividend 31-03-08 31-03-08 37.715 14.592 .

0666 32.0998 71.2839 11.B Growth Tata Equity P/E Fund (Dividend) Tata Equity P/E Fund (Growth Option) NAV Price 10.0880 23.A Dividend Tata Equity Opportunities Fund .2481 31.9947 Date 31 Mar 2008 31 Mar 2008 31 Mar 2008 31 Mar 2008 31 Mar 2008 31 Mar 2008 Graph showing NAV of the three companies: 40 35 30 25 20 15 10 5 0 Reliance Kotak TATA Graph showing 60 50 40 30 20 returns 10 0 -10 1/2/2008 1/3/2008 1/4/2008 of the three companies: 1/2/2008 1/3/2008 1/4/2008 Reliance Kotak TATA .Latest NAV TATA Equity fund: Scheme Name Tata Equity Management Fund .Div Tata Equity Management Fund .Growth Tata Equity Opportunities Fund .

Avg 1.61 1.80 246.03 33.97 -23.63 45.48 647.Avg .0 3.28 43.78 -39.44 3-Yr Return (%) Worst 3month Return (%) Risk Grade Sharpe Ratio Fund size (Rs.27 4286.Graph showing Risk of the three companies: Reliance Kotak TATA Table of grades of risks and returns: MUTUAL FUND Reliance Kotak TATA RISK Average Above Average Average RETURN High Above Average Average The companies position among India’s top 100 mutual funds: Rank Fund Name Score 1-Yr Return (%) 1 15 24 Kotak opportunities Reliance equity fund TATA 10.83 53. Crore) NAV (Rs) .2 56.59 .

05 1.54 -1.3316 3.003002 1169.648 19.296 68.02 17578.90 + Avg 1.2461 183.83 10.169 BSE INDEX 15761.23 BSE Index Returns 31.7218 212.538330 0.859 20.2839 10.087616 Y DATE 1/4/2008 1/3/2008 1/2/2008 TOTAL Avg Σx2 beta TR NAV(MF) 10.306 X*X 2926.612 57.223 233.056 18.21 13.21 BSE Index Returns 41.837 45.09 BSE INDEX 15761.37 584.100376 1968.9241 0.004735 X*Y 1070.72 0.546 41.72 18233.112 0.64 9.47064 3265.54 84.58 45.81 201.798 52.0678 BSE INDEX 15761.287 32.33 -26.59 70.02 17578.72 18233.6 42.42 X RELIANCE Returns (%) 33.67 4625.298116 Y DATE 1/4/2008 1/3/2008 1/2/2008 TOTAL Avg Σx2 beta TR NAV(MF) 21.3072 1.952 17.686 1.42 X KOTAK Returns (%) 56.715 34.08 23.906 13.10 14.006814 X*Y 3031.65 2803.96 1756.91 0.508651 0.36 BSE Index Returns 54.72 18233.004381 X*Y 1754.03 16.4784 0.232804 .0896 94.42 X TATA Returns (%) 42.91 Returns of the companies with the BSE: Y DATE 1/4/2008 1/3/2008 1/2/2008 TOTAL Avg Σx2 beta TR NAV(MF) 37.21 0.58 15.1054 9.02 17578.717 15.070 X*X 1001.44 1.68 -0.3812 97.6124 0.014 22.equity opportunities 1.45317 0.12 X*X 1698.904 0.


FINDINGS: The project was done at AnandRathi Mutual Fund in Tumkur for a period of from Feb 1 to Apr1 and the data collected for the project was for a period of three years and in brief of three months i. And on the collected data.508651.538330 • Reliance stands next in its positive returns compared to Kotak and it’s also of average risk and but high return and its β is 0.004735. • The equity fund of Reliance has given 0. • Though Kotak has given positive returns it is of bit risk due to which β of this mutual fund of equity scheme is 0. • TATA has got both positive and negative returns and it’s of average risk and average return and its β is 0.e.004381 excess returns than the risk free returns (Treasury bills) for per unit of risk. study was done and the following were the findings: • The above equity mutual funds have given good returns in the recent 3 months and also in the period of three years.e. Kotak of 0. 2/1/2008 to 1/4/2008) • TATA Opportunities have given good return in last two months than Reliance.006814 and TATA of 0. . (i. however all the three have given average returns and it is impressive. from 1st Jan 2008 to 2nd Apr 2008. • Though there was the great downfall in the market in January. • Reliance and Kotak have given in the last three months all positive returns. • The Kotak Opportunities has given good returns when compared to other two mutual fund companies in the equity diversified scheme in the period of quarter.45317. and Reliance has suffered a great loss in the first month of this year.

. radio and internet to promote its products.• And among India’s top 100 mutual funds in equity diversified scheme Kotak opportunities stands 1st rank.  Though some funds are meant long term investments the company has When compared to overall market it’s still less return so it is advisable to take efforts to improve returns so that they will get more at end of long terms.  their best. needs some recommendations or suggestions for further development and to attract more number of investors.  returns.  to encourage investments. reliance stands 15th rank and TATA opportunities stands 24th rank.  Steps may be taken to reduce the volatility of equity funds as it is more They have to regularly pay dividends to their unit holders out of profits And its also advisable to invest in basic industries as it gives more volatile when compared to other funds. SUGGESTIONS The findings of the study relating to mutual funds. for all the companies to divest the investment of the fund so that they can yield to For AnandRathi:  It is suggested promote its products through mass communication media like television. As it is effective media to attract prospective investors  There is need to set up offices in every city and provide internet facility to speed up the servicing activity to makeup transactions effectively and to maintain goodwill.

foreign investments & government control. The real growth & change occurred from mid eighties in the wake of liberalization initiative of the government. capital market. . There are many improvements pending in the field and it has to happen as soon as possible so as to call the MF industry as an Organized and well-developed sector. duplication & mutilation of shares. CONCLUSIONS: Indian stock market. Also generate leads of the prospective investors in Mutual Funds for the Asset Management Company (AMC) to sell Mutual Fund products and to make people aware of the Mutual Funds and its products. the trading volumes was small due to small investing population. or Government securities in order to provide high relative safety and returns. The reforms in the financial sector were envisaged in the banking sector. Mutual Funds (MF) have become one of the most attractive ways for the average person to invest HIS money. fake signatures & signature mismatches. mutual funds. It also overtook Dow Jones of USA & gave superb returns when it touched all time high. bonds. It is advisable to appoint more agents to explain regarding the products and services that the AnandRathi has.fake & stolen shares. transfer problems etc. one of the emerging markets in the world showed impressive performance in last couple of years. It is said that Bank investment is the first priority of people to invest their savings and the second place is for investment in Mutual Funds and other avenues. securities market regulation. A Mutual Fund pools resources from thousands of investors and then diversifies its investment into many different holdings such as stocks. There were problems galore with handling documents. . But in early eighties Indian markets were literally weighed down by the need to deal with shares in paper form.

However in spite of volatility in the market.If we see the performance of the Reliance. We can say that at last taken these three Equity Growth mutual funds have performed well than their benchmark due to the diversified allocation of fund into different sectors which have been performing well in the market. No doubt there is fluctuation in the NAV (Rs) of equity diversified Fund. The track record of the NAV (Rs) has shown sound increase even though there was some what consistency but it has not decrease to a great extent. But we can see that there has not been complete downfall in NAV (Rs). And due to the systematic analysis of the fund managers. . they stand at good position compared to their benchmark. Kotak and TATA Equity Fund has shown the impressive returns to the investors.

 Business World.  Value Research Mutual Fund Insight  Business Today. WEBSITES: . MAGAZINES:  Outlook Money by fortnightly magazines.BIBLIOGRAPHY BOOKS REFERRED:  Security Analysis and Portfolio Management by Punithavathy Pandian  Invest India Economic Foundation.

com        www.kotakmutual.anandrathi.sebi.amfi.valueresearch.tatamutual.

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