CHAPTER I INTRODUCTION, DESIGN AND EXECUTION OF THE STUDY

1.1 INTRODUCTION Investment is putting money into something with the hope of profit. More specifically, investment is the commitment of money or capital to the purchase of financial instruments or other assets so as to gain profitable returns in the form of interest, income as dividends, or appreciation means capital gains of the value of the instrument. It is related to saving or deferring consumption. Investment is involved in many areas of the economy, such as business management and finance no matter for households, firms, or governments. An investment involves the choice by an individual or an organization, such as a pension fund, after some analysis or thought, to place or lend money in a vehicle, instrument or asset, such as property, commodity, stock, bond, financial derivatives or the foreign asset denominated in foreign currency, that has certain level of risk and provides the possibility of generating returns over a period of time.
A mutual fund is one among the investment avenues a professionally managed type of collective investment scheme that pools money from many investors and invests typically in investment securities (stocks, bonds, short-term money market instruments, other mutual funds, other securities, and/or commodities such as precious metals). The mutual fund will have a fund manager that trades the fund's investments in accordance with the fund's investment objective.

But the selection of schemes vests in the hands of the investors himself and this process requires adequate awareness about market, or here comes the role of financial service firms. Financial service firm provide information on various aspects of investment and they guide the customers to take important investment decisions. Investors usually take investment decision on the basis of their past experience, safety, convenience, etc. if the financial service firms identify the factors that affect the customers investment decision, they can guide the investors in choosing the right scheme at the right moment for the right requirement
1

This study identifies of the performance

of mutual fund scheme, flatted in the

category of equity diversified, based on past performance. It will help to evaluating the performance of the scheme and to identify the top scheme in the past five years and will help the Geojit financial service Ltd. Calicut as well as other regulatory authorities to forward with promotional and other awareness programs to educate the investors at their best. 1.2 OBJECTIVES OF THE STUDY

Main objective The main objective of the study is the identification of the performance of mutual fund scheme, flatted in the category of equity diversified, based on past performance Sub objective 1 2 Evaluating the performance of the scheme using risk adjusted return measure of sharp To compare the annual returns of the schemes with the S&P CNX NIFTY (benchmark) 3 returns for the past five years

Identify the schemes in the past five years based on the performance, using annualized returns of the scheme.

4

identify the top schemes in the past five years based on risk adjusted retun method

1.3 RESEARCH METHODOLOGY The study is based on the secondary data collected from the credit rating agencies of the mutual fund scheme. From there selected 5 star 4 star 3 star 2 star and 1 star categories of schemes. All the schemes have been studied in detail to assess the performance of the scheme TOOLS y y y Average return method Sharpe ( Risk adjusted return) ratio Standard Deviation of the scheme
2

1.4 FORMULA SHARPE RATIO S = (RM ± RF) / SD Where, S ± Sharpe index RM ± Average return on portfolio RF ± Risk free rate SD ± Standard Deviation of the returns (Risk free rate is defined as state banks 81 ± 180 days term deposits rate 4.75 %)

EQUITY DIVERSIFIED Mutual fund schemes are floated in different categories. Value research had identified 30 categories of mutual fund schemes. However the categories are broadly of three types. They are Debt, Equity and Balanced. These three are further divided and dub divided by the mutual fund agencies Equity based schemes are those schemes, where 80% or more of the funds investment in the equity sector

RATING OF SCHEMES IN THE EQUITY DIVERSIFIED CATEGORY The schemes in the category of equity diversified are rated in to five grades or rates by the credit rating agency (value research) 5 star rated schemes 4 star rated schemes 3 star rated schemes 2 star rated schemes 1 star rated schemes
3

 It will help to identification of best mutual fund scheme.1. The study conducted for 45 days 1. The annualized returns provided by the AMC are taken to be real and authentic  The performance of the mutual fund schemes is evaluated on many measures but here only the return and benchmark methods are used to study the schemes. Calicut covers a period of 5 years from 2005 to 2009. clients . as well as other regulatory authorities to forward with promotional and other awareness programs to educate the investors at their best..  The data collected from the AMC regarding the annual returns for the five years may be biased as the company actual discloses are not accessible 4 .6 SCOPE OF THE STUDY  The study will help to evaluating the performance of the scheme and to identify the top scheme in the past five years  This will help the investors should choose to allow their investment to compound over long run  It will help the Geojit BNP Pariba Financial Service Ltd.  The study helps the investors.  Though the credit rating agency (Value research) claims not to be biased on its rating status is given. floated in the category of equity diversified based on past performance.7 LIMITATIONS OF THE STUDY  Since the study is of financial nature the data provided by the AMC¶s (Asset Management Companies) and the credit rating agencies may be having some biases.5 PERIOD OF STUDY A study on Financial performance of Mutual Funds scheme at Geojit BNP Pariba financial service Ltd. brokers and other regulators in the process of investment decision 1.

and other securities. The trustees are vested who general power of superintendence and direction over AMC. The income earned through these investments and the capital appreciation realized are shared and by its unit holders in proportion to the number of units owned by them. 5 . debentures. trustees.CHAPTER II HISTORICAL PERSPECTIVE OF MUTUAL FUND INDUSTRY AND PROFILE OF GEOJIT BNP PARIBAS 2. who is registered with SEBI. The money thus collected is then invested in capital market such as shares. which as a sponsor. They monitor the performance and compliance of SEBI regulation by the mutual funds 2.2 WORKING OF MUTUAL FUND Mutual fund is a trust that pools the savings of number of investors who shares a common financial goal. holds the securities of various schemes of the fund in its custody.1 INTRODUCTION Mutual is a mechanism for pooling the resources by issuing units to the investors and investing funds in securities in accordance with certain investment objectives. The trustees of the mutual funds hold its property for the benefit of units holders. The trust is established by a sponsor or more than one sponsor who is like promoters of a company. Investment in securities are spread across the wide cross section of the industries and sectors and thus the risk is reduced diversification reduce the risk because all stocks may not move in the same direction in the same proportion at the same time A mutual fund is set up the term of trust. Asset Management Company and custodian. Custodian. Asset management company (AMC) approved by SEBI managers the funds by making investment in various types of securities.

The key feature of open-end schemes is liquidity. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where the units are listed. 2. Schemes according to Maturity Period: A mutual fund scheme can be classified into open-ended scheme or close-ended scheme depending on its maturity period. Fund according to Investment Objective: 6 . 5-7 years. Investors can conveniently buy and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis.e. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor i. These Funds do not have a fixed maturity period. Open-ended Fund An open-ended Mutual fund is one that is available for subscription and repurchase on a continuous basis. These mutual funds schemes disclose NAV generally on weekly basis. a. some close-ended funds give an option of selling back the units to the mutual fund through periodic repurchase at NAV related prices. In order to provide an exit route to the investors.g. either repurchase facility or through listing on stock exchanges. Close-ended Fund A close-ended Mutual fund has a stipulated maturity period e. The fund is open for subscription only during a specified period at the time of launch of the scheme. professionally managed basket of securities at a relatively low cost.Thus a mutual fund is the most suitable investment for common man as it an opportunity to invest in a diversified. b. The flow chart below describes broadly the working of mutual fund. II.3 TYPES OF MUTUAL FUND I.

7 . and the investors may choose an option depending on their preferences. If the interest rates fall. Growth / Equity Oriented Scheme The aim of growth funds is to provide capital appreciation over the medium to long. Such funds have comparatively high risks. Such schemes generally invest in fixed income securities such as bonds. However. long term investors may not bother about these fluctuations. etc. or balanced fund considering its investment objective. Such schemes may be classified mainly as follows: a. These funds are not affected because of fluctuations in equity markets. The investors must indicate the option in the application form. Such schemes may be open-ended or close-ended schemes as described earlier. b. income fund. These schemes provide different options to the investors like dividend option. opportunities of capital appreciation are also limited in such funds. The NAVs of such funds are affected because of change in interest rates in the country. Such funds are less risky compared to equity schemes. Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time. Income / Debt Oriented Scheme The aim of income funds is to provide regular and steady income to investors. corporate debentures. Such schemes normally invest a major part of their corpus in equities. However.term.A scheme can also be classified as growth fund. capital appreciation. Government securities and money market instruments. NAVs of such funds are likely to increase in the short run and vice versa. The mutual funds also allow the investors to change the options at a later date.

f. though not exactly by the same percentage due to some factors known as "tracking error" in technical terms. Money Market or Liquid Fund These funds are also income funds and their aim is to provide easy liquidity. government securities.c. Gilt Fund These funds invest exclusively in government securities. NAVs of such funds are likely to be less volatile compared to pure equity funds. These schemes invest exclusively in safer short-term instruments such as treasury bills. e. certificates of deposit. Balanced Fund The aim of balanced funds is to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. They generally invest 40-60% in equity and debt instruments. Government securities have no default risk. etc These schemes invest in the securities in the same weightage comprising of an index. commercial paper and inter-bank call money. d. Necessary disclosures in this regard are made in the offer document of the mutual fund scheme. etc. NAVs of such schemes would rise or fall in accordance with the rise or fall in the index. These are appropriate for investors looking for moderate growth. NAVs of these schemes also fluctuate due to change in interest rates and other economic factors as is the case with income or debt oriented schemes. Index Funds Index Funds replicate the portfolio of a particular index such as the BSE Sensitive index. There are also 8 . preservation of capital and moderate income. These funds are appropriate for corporate and individual investors as a means to park their surplus funds for short periods. Returns on these schemes fluctuate much less compared to other funds. S&P NSE 50 index (Nifty). These funds are also affected because of fluctuations in share prices in the stock markets. However.

47. LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990. At the end of 1988 UTI had Rs. Third Phase ± 1993-2003 (Entry of Private Sector Funds) With the entry of private sector funds in 1993. Bank of Baroda Mutual Fund (Oct 92). The history of mutual funds in India can be broadly divided into four distinct phases First Phase ± 1964-87 Unit Trust of India (UTI) was established on 1963 by an Act of Parliament.004 crores. At the end of 1993. 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.700 crores of assets under management.6. SBI Mutual Fund was the first non. Punjab National Bank Mutual Fund (Aug 89). 9 . Indian Bank Mutual Fund (Nov 89). at the initiative of the Government of India and Reserve Bank of India. The first scheme launched by UTI was Unit Scheme 1964. public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC).4 HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY The mutual fund industry in India started in 1963 with the formation of Unit Trust of India. Also.UTI. a new era started in the Indian mutual fund industry.UTI Mutual Fund established in June 1987 followed by Canbank Mutual Fund (Dec 87).exchange traded index funds launched by the mutual funds which are traded on the stock exchanges. Bank of India (Jun 90). 2. 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. Second Phase ± 1987-1993 (Entry of Public Sector Funds) 1987 marked the entry of non. giving the Indian investors a wider choice of fund families.

sponsored by SBI. It is registered with SEBI and functions under the Mutual Fund Regulations. The number of mutual fund houses went on increasing. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. there were 33 mutual funds with total assets of Rs. PNB. The industry now functions under the SEBI (Mutual Fund) Regulations 1996. As at the end of January 2003. representing broadly. The Unit Trust of India with Rs.805 crores.29.44.000 crores of assets under management and with the setting up of a UTI Mutual Fund.835 crores as at the end of January 2003. conforming to the SEBI Mutual Fund Regulations. the mutual fund industry has entered its current phase of consolidation and growth 10 . 1. BOB and LIC. assured return and certain other schemes.1993 was the year in which the first Mutual Fund Regulations came into being. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993. under which all mutual funds. 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. The Specified Undertaking of Unit Trust of India. the assets of US 64 scheme. Fourth Phase ± since February 2003 In February 2003.76.541 crores of assets under management was way ahead of other mutual funds. following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs. except UTI were to be registered and governed. and with recent mergers taking place among different private sector funds.21. with many foreign mutual funds setting up funds in India and also the industry has witnessed several mergers and acquisitions. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.

The gamut of value. phone service. the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). BNP Paribas Securities India Private Limited.Aloula Geojith Brokerage Company headquartered in Riyad is the other joint venture with the Al Johar group in Soudi Arabia. and is listed on. dedicated Customer Care centre and the Internet.Geojith BNP Paribas is well positioned to further expand its reach to NRIs in 85 countries . The company rides on its rich experience in the capital market to offer its clients a wide portfolio of savings and investments solutions.Rakesh Jhunjhunwala-when it took a stake to become the single largest shareholder. This JV was created exclusively for domestic and foreign institutional clients. one of the largest retail banks in Bahrain and Kuwait. Strategic joint ventures and business partnerships in the Middle East have provided the company access to the large Non-resident Indian (NRI) population in the region.J. Geojith BNP Paribas has membership in. At the forefront of the many fruitful associations between Geojith BNP Paribas and BNP Paribas is their joint venture. 11 .Sharjah and Muscat. Ras AI Khaimash .In 2007. global banking major BNP Paribas joined the company¶s other major share holders Mr.George.Barjeel Geojith Securities is the joint venture with the Al Saud group in the United Arab Emirates that is headquartered in Dubai with branches in Abu Dhabi .5 GEOJITH BNP PARIBAS FINANCIAL SERVICES LTD Geojith BNP Paribas today is a leading retail financial services company in India with a growing presence in the Middle East. Now as a part of the BNP Paribas global network . The needs of over 495. KSIDC (Kerala State Industrial Development Corporation) and Mr. Life & General Insurance and third party Fixed Deposits.000 clients are met via multichannel services .a countrywide network of over 500 offices.2. The company also has a business partnership with the Bank of Bahrain and Kuwait.added products and services offered ranges from equities and derivatives to Mutual Funds. namely.C.

mutual funds and IPOs. Chattisgarh.the company was the first stock broker in the country to offer Internet Trading. A strong brand identity and extensive industry knowledge coupled with BNP Paribas¶ international expertise gives Geojith BNP Paribas a competitive advantage. Presently. Wide range of product and services Certified financial advisors help clients to arrive at the right financial solution to meet their individual needs. Expanding range of online products and services Geojith BNP Paribas has proven expertise in providing online services. is helping the company to rapidly expand its business in this segment. In the year 2000.An industry first was achieved when Geojith BNP Paribas became the first broker in India to offer full Direct Market Access (DMA) on NSE to the JV¶s institutional clients. 12 .the network of over 500 offices across 300 cities and towns presently covers Andhra Pradesh. currency futures. clients can trade online in equities. Strategic B2B agreements with Axis Bank and Federal Bank enable the respective bank¶s clients to open integrated 3-in-1accounts to seamlessly trade via a sophisticated Online Trading platform. Riding on this experience. derivatives. Bihar. and select from multiple bank payment gateways for online transfer of funds. This was followed by integrating the First Bank Payment Gateway in the country for internet trading. and many other industry firsts. The wide range of products and services on offer includes ± Equities / Derivatives / Currency Futures / Custody accounts / Mutual Funds /Life Insurance & General Insurance / IPOs / Portfolio Management Services / Property Services / Margin Funding / Loan against Shares A growing footprint With a presence in almost all the major states of India . Further. and harnessing BNP Paribas Personal investors¶ expertise as the leading online broker in Europe. deployment of BNP Paribas state-of-the-art globally accepted systems and processes is already scaling up the sales of Mutual Funds and Insurance.

Rajasthan. Utter Pradesh. George. became a co-promoter of Geojit by acquiring a 24 percent stake in the company. Geojit Financial Services Limited has been renamed as Geojit BNP Paribas Financial Services Ltd.(GFSL) The board consist of professional directors including a Kerala Government nominee.Ranajit Kanjilal founded Geojith as a partnership firm.(KSIDC). The year 1995 also saw Geojit being listed on the leading regional stock exchanges .in 1995.Ranajit Kanjilal retired from the firm and Geojith became the proprietary concern of Mr.Goa. Punjab. C. On 31st December 2007. The Kerala State Industrial Development corporation Ltd.J.This was also the year when the company was renamed as Geojit Financial Services Ltd.J. In 1994. With effect from July 2005. New Delhi. the company is also listed at the National Stock Exchange (NSE). Madhya Pradesh. Jammu & Kashmir. launched Online Futures Trading in agri-commodities. Geojit Commodities Limited.Geojit listed at The Stock Exchange. Global banking major BNP Paribas took a stake in the year 2007 to become the single largest share holder. the company closed its commodities business and surrendered its membership in the various commodity exchanges held by Geojit Commodities Ltd. the only instance in India of a government entity participating in the equity of a stock broking company. Consequently. Gujarat. Karnataka. Maharashtra.precious metals and energy futures on multiple commodity exchanges in 2003. Mumbai (BSE) in the year 2000. George and Mr.C. Haryana. Mr. 13 . Uttaranchal and West Bengal. EVOLUTION OF THE COMPANY It all started in the year 1987 when Mr. Tamil Nadu & Pondicherry. In 1993. Company is a charter member of the Financial planning Standards Board of India and is one of the largest Depository Participant (DP) brokers in the country. Orissa.Company¶s wholly owned subsidiary. Kerala. it became a Public Limited Company named Geojit Securities Ltd.

(KSIDC) acquires 24 percent equity stake. BSE Listing. Commences Derivative Trading with NSE. Membership in Cochin Stock Exchange(CSE) 14 . Becomes India¶s first DP to launch depository transactions through internet.1986 y 1994 Becomes a public Limited company named Geojit Securities Ltd. 1995 y y y 1996 y 1997 y 1999 y 2000 y y y y 2001 y y 2002 y First in India to launch an integrated internet trading system for Cash & Derivatives segments. Public Issue. Integrate the first Bank Payment Gateway in the country for Internet Trading. Established Joint Venture in the UAE to server NRI customers. Launch of Portfolio Management Services with SEBI registration. Kerala State Industrial Development Corporation Ltd. Membership in Bombay Stock Exchange(BSE) Depository Participant (DP) under National Securities Depository Limited. Membership in National Stock Exchange (NSE). First broking firm in India to offer online trading facility.

BNP Paribas takes a stake in the company¶s equity¶making it the single largest shareholder. Establishes Joint Ventures in Saudi Arabia to serve the Saudi national and the NRI. Pepper. precious metals and in energy futures on multiple commodity exchanges. wholly owned subsdiary. National launch of online futures trading in Rubber. Geojit Credits.. First brokerage to offer full Direct Market Access execution in India for institutional clients. Charter member of the Financial Planning Standards Board of India.A for Institutional Brokerage. registers with RBI as a Non-Banking Financial Company (NBFC). Gold. National launch of online futures trading in coffee. launched Online Futures Trading in agri-commodities.a Joint Venture with BNP Paribas S. 15 . y y 2004 y 2005 y y y NSE Listing. a subsidiary.2003 y Geojit Commodities Limited. Wheat and Rice. National launch of online futures trading in Cardamom 2006 y 2007 y y 2008 y y BNP Paribas Securities India (P) Ltd. Company renamed as Geojit Financial Services Ltd.

2009 y y y Launch of Property Service division. 16 . Consequent to BNP Paribas becoming the largest stakeholder in Geojit Financial Service. company is renamed as Geojit BNP Paribas Financial Services Ltd. Launch of online trading in Currency Derivatives.

CHAPTER ± III FINANCIAL PERFORMANCE ASSESSMENT OF SECLET MUTUAL FUND SCHEMES
3.1 INTRODUCTION TO DATA ANALYSIS AND INTERPRETATION Comparison of 5 star rated schemes in the category of equity diversified with the S&P CNX NIFTY of the respective year. Here selected 6 schemes from 5 star rated mutual fund in the category of equity diversified. The returns of the scheme are compared to the S&P CNX NIFTY and then their differences are calculated in the following table TABLE-1 S&P CNX NIFTY AND RETURNS OF THE SCHEMES FOR THE YEAR 2005 FUND NAME BIRLA SUN LIFE DIVIDENT YIELD PLUS DSPBR EQUITY HDFC EQUITY HDFC TOP 200 ICICI PRUDENTIAL DISCOVERY SUNDARAM BNP PARIBAS SELECT MIDCAP REG Source: Secondary data. INTERPRETATION S&P CNX NIFTY 36.34 36.34 36.34 36.34 36.34 FUND RETURN 30.53 52.93 62.70 55.25 63.74 16.59 26.36 18.91 27.4 INCRESE DECREASE 5.81

36.34

61.36

25.02

From the above table it is found out that ICICI PRUDENTIAL DISCOVERY and HDFC Equity are the two schemes which performed well during the year 2005

17

TABLE 2 S&P CNX NIFTY AND FUND RETURNS OF THE SCHEMES FOR THE YEAR 2006 FUND NAME S&P CNX NIFTY FUND RETURN 10.46 INCREASE DECREASE

BIRLA SUN LIFE 39.83 DIVIDENT YIELD PLUS DSPBR 39.83 EQUITY HDFC 39.83 EQUITY HDFC TOP 39.83 200 ICICI PRUDENTIAL 39.83 DISCOVERY SUNDARAM BNP PARIBAS 39.83 SELECT MIDCAP REG Source: Secondary data. INTERPRETATION

29.37

47.09 35.86 37.44 28.69

7.26 3.97 2.39 11.14

60.77

20.94

From the above table it is found out that SUNDARAM BNP PARIBAS SELECT MIDCAP REG and DSPBR EQUITY are the two schemes which performed well during the year 2006

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TABLE 3 S&P CNX NIFTY AND FUND RETURNS OF THE SCHEMES FOR THE YEAR 2007 FUND NAME S&P CNX NIFTY FUND RETURN 56.87 INCRESE DECREASE

BIRLA SUN LIFE 54.77 DIVIDENT YIELD PLUS DSPBR 54.77 EQUITY HDFC 54.77 EQUITY HDFC TOP 54.77 200 ICICI PRUDENTIAL 54.77 DISCOVERY SUNDARAM BNP PARIBAS 54.77 SELECT MIDCAP REG Source: Secondary data. INTERPRETATION

2.1

70.29 53.61 54.46 63.14

15.22 1.16 .31 8.37

60.77

6

From the above table it is found that DSPBR EQUITY and ICICI PRUDENTIAL DISCOVERY are the two schemes which performed well during the year 2007

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68 -45.44 2.70 -49.79 EQUITY HDFC -51.TABLE 4 S&P CNX NIFTY AND RETURNS OF THE SCHEMES FOR THE YEAR 2008 FUND NAME S&P CNX NIFTY FUND RETURN -44.09 2.79 DIVIDENT YIELD PLUS DSPBR -51.79 EQUITY HDFC TOP -51.35 -49.44 INCREASE DECREASE BIRLA SUN LIFE -51.79 200 ICICI PRUDENTIAL -51.79 DISCOVERY SUNDARAM BNP PARIBAS -51. In this stage the investor will suffer the loss 20 .34 6.79 SELECT MIDCAP REG Source: Secondary data INTERPRETATION 7.55 From the above table it is found out that not even single scheme did not perform well.35 -54.11 6.56 2.77 -58.

76 HDFC EQUITY 75.63 38.76 PRUDENTIAL DISCOVERY SUNDARAM BNP 75.76 PLUS DSPBR EQUITY 75.57 94.32 INCREASE 13.98 14.81 18.TABLE 5 S&P CNX NIFTY AND FUND RETURNS OF THE SCHEMES FOR THE YEAR 2009 FUND NAME S&P CNX NIFTY BIRLA SUN LIFE DIVIDENT YIELD 75.89 29.76 ICICI 75.76 PARIBAS SELECT MIDCAP REG Source: Secondary data.56 114.7 58.87 INTERPRETATION From the above table it is found that ICICI Prudential Discovery and Sundaram BNP Paribas Select MIDCAP REG are the two schemes which performed well during the year 2009.76 HDFC TOP 200 75. 21 .74 90. FUND RETURN 89.65 105.46 134.

25 41. Then the average returns of each scheme were calculated on the basis of yearly data collected.74 6 42.98 DIVIDENT YIELD PLUS DSPBR 30.63 8.61 39.98 EQUITY HDFC EQUITY 30.27 11.98 ICICI 30.98) was calculated. firstly the average S&P CNX NIFTY for the past five years (30. 28. OF S&P CNX NIFTY AVG.37 11.25 42.98 PRUDENTIAL DISCOVERY SUNDARAM BNP PARIBAS 30.27 10.33 1 22 .98 SELECT MIDCAP REG Source: Secondary data. Finally the average S&P CNX NIFTY and average returns were compared on the basis of the increase in points TABLE 6 RANKING OF SCHEMES IN THE 5 STAR RATING USING 5 YEAR RETURN PERFORMANCE (2005-2009) AVG.RANKING OF SCHEMES IN THE 5 STAR RATING USING 5 YEAR RETURN PERFORMANCE OF THE SCHEMES (2005-2009) To identify the top schemes in the 5 star rated class for the past five years.64 1.31 17.98 HDFC TOP 200 30.39 3 4 5 2 48. OF FUND RETURN FUND NAME INCREASE DECREASE RANK BIRLA SUN LIFE 30.

CHART 1 CHART SHOWING TOP SCHEMES ON RETURN BASIS 60 50 40 30 20 10 0 BIRLA SUN LIFE DSPBR EQUITY DIVIDENT YIELD PLUS HDFC EQUITY HDFC TOP 200 ICICI PRUDENTIAL DISCOVERY SUNDARAM BNP PARIBAS SELECT MIDCAP REG INTERPRETATION The above table and chart gives the detail of how the return of schemes performed in all the 5 years in relation with the S&P CNX NIFTY. has first rank 23 . By the 5 years average comparison could find that BNP Paribas Select Midcap Reg.

38 0. Finally the average S&P CNX NIFTY and average return were compared and the schemes were ranked on the basis of increase in points Table 7 PERFORMANCE EVALUATION OF SCHEMES BY USING SHAREP MODEL FUND NAME S&P CNX NIFTY RATIO 0. firstly the average S&P CNX NIFTY index for 5 year was calculated on the basis of the past five years annual S&P CNX NIFTY rates.99 0.38 0.5 0. Then the average return index of 5 years of each scheme was calculated on the basis of yearly data retrieved.49 0.99 0. 0.54 DECREASE RANK BIRLA SUN LIFE DIVIDENT YIELD PLUS DSPBR EQUITY HDFC EQUITY HDFC TOP 200 ICICI PRUDENTIAL DISCOVERY SUNDARAM BNP PARIBAS SELECT MIDCAP REG Source: Secondary data.99 0.61 0.61 1 24 .99 points. The average S&P CNX NIFTY stood at 0.99 0.45 5 2 3 3 4 0.99 SHAREP RATIO RETURN 0.99 0.RANKING OF SCHEMES IN 5 STAR USING SHAREP MODEL OF PERFORMANCE EVALUATION (2005-2009) To identify the top schemes in the 5star rated class for past five years according to Sharpe model.58 0.5 0.49 0.41 0.

got first rank 25 . The difference has noted and ranked in the past 5 years according to Sharpe theory.CHART 2 TOP SCHEMES ON RANK BASIS BY SHAREP RATIO 6 5 4 3 2 1 0 BIRLA SUN LIFE DIVIDENT YIELD PLUS DSPBR EQUITY HDFC EQUITY HDFC TOP ICICI SUNDARAM 200 PRUDENTIAL BNP PARIBAS DISCOVERY SELECT MIDCAP REG INTERPRETATION The above table and chart are the comparison of Sharpe and S&P CNX NIFTY return with the Sharpe scheme return to rank the top players according to Sharpe theory. In the past 5 years according to Sharpe theory Sundaram BNP Paribas Selected Midcap Reg.

73 36.34 FUND RETURN 31.39 0.64 From the above table it is found out that Reliance Growth and DSPBR Opportunities are the two schemes which performed well during the year 2005 26 .60 68.24 36.26 32.34 36.88 47.34 37.69 13.34 36.54 11.COMPARISON OF 4 STAR RATED SCHEMES IN THE CATEGORY OF EQUITY DIVERSIFIED WITH THE S&P CNX NIFTY OF THE RESPECTIVE YEAR Here selected 6 schemes from 4 star rated mutual fund in the category of equity diversified. INTERPRETATION 5.98 0.34 36. The returns of the scheme are compared to the S&P CNX NIFTY and then their differences are calculated in the following table TABLE 8 S&P CNX NIFTY AND RETURNS OF THE SCHEMES FOR THE YEAR 2005 FUND NAME S&P CNX NIFTY 36.34 36.10 INCREASE DECREASE BIRLA SUN LIFE ASSET ALLOCATION AGGRESSIVE CANARA ROBCO EQUITY DIVERSIFIED DSPBR OPPORTUNITIES HDFC CAPITAL BUILDER RELIANCE GROWTH TATA DIVDENT YIELD Source: Secondary data.03 49.

35 43.83 39.48 18.83 39.83 31.83 39.96 21.09 INCREASE DECREASE BIRLA SUN LIFE ASSET ALLOCATION AGGRESSIVE CANARA ROBCO EQUITY DIVERSIFIED DSPBR OPPORTUNITIES HDFC CAPITAL BUILDER RELIANCE GROWTH TATA DIVDENT YIELD Source: Secondary data.25 24.TABLE 9 S&P CNX NIFTY AND RETURNS OF THE SCHEMES FOR THE YEAR 2006 FUND NAME S&P CNX NIFTY 39.13 8.07 1.58 41 15.81 39.83 FUND RETURN 31.67 From the above table it is found out that DSPBR Opportunities and Reliance Growth are the two schemes which performed well during the year 2008 27 .83 39. INTERPRETATION 8.17 4.

98 From the above table it is found out that Reliance Growth and TATA Dividend Yield are the two schemes which performed well during the year 2007 28 .77 54.77 63.TABLE 10 S&P CNX NIFTY AND RETURNS OF THE SCHEMES FOR THE YEAR 2007 FUND NAME S&P CNX NIFTY 54.08 13.77 54.65 76.85 75.77 FUND RETURN 41.77 54.33 54. INTERPRETATION 13.08 20.65 5.88 22.85 68.44 INCREASE DECREASE BIRLA SUN LIFE ASSET ALLOCATION AGGRESSIVE CANARA ROBCO EQUITY DIVERSFIED DSPBR OPPORTUNITIES HDFC CAPITAL BUILDER RELIANCE GROWTH TATA DIVDENT YIELD Source: Secondary data.77 54.42 59.75 8.

11 -53.49 29 .79 -51.38 -51.79 -50.79 -51.28 0.84 -55.32 1.31 3.89 -54.95 3. In this stage the investor will suffer the loss S&P CNX NIFTY -51.10 -54.79 FUND RETURN -37.1 2.79 -51.79 -51.TABLE 11 S&P CNX NIFTY AND RETURNS OF THE SCHEMES FOR THE YEAR 2008 FUND NAME BIRLA SUN LIFE ASSET ALLOCATION AGGRESSIVE CANARA ROBCO EQUITY DIVERSIFIED DSPBR OPPORTUNITIES HDFC CAPITAL BUILDER RELIANCE GROWTH TATA DIVDENT YIELD Source: Secondary data. INTERPRETATION From the above table it is found out that not even single scheme did not perform well.41 INCREASE DECREASE 14.

76 75.40 88.69 17.45 92.22 10.76 92.76 75.64 12.91 97. INTERPRETATION From the above table it is found out that Reliance Growth and Canara Robco Equity Diversified are the two schemes which performed well during the year 2009 S&P CNX NIFTY 75.69 30 .15 21.76 75.76 75.99 75.76 FUND RETURN 71.TABLE 12 S&P CNX NIFTY AND RETURNS OF THE SCHEMES FOR THE YEAR 2009 FUND NAME BIRLA SUN LIFE ASSET ALLOCATION AGGRESSIVE CANARA ROBCO EQUITY DIVERSIFIED DSPBR OPPORTUNITIES HDFC CAPITAL BUILDER RELIANCE GROWTH TATA DIVDENT YIELD Source: Secondary data.77 INCREASE DECREASE 3.98 86.45 17.

8 3.98 ROBCO EQUITY DIVERSIFIED DSPBR 30.RANKING OF SCHEMES IN THE 4 STAR RATING USING 5 YEAR RETURN PERFORMANCE OF THE SCHEMES (2005-2009) To identify the top schemes in the 4 star rated class for the past five years.6 DECREASE RANK 5.98) was calculated.98 OPPORTUNITIES HDFC CAPITAL 30. Then the average returns of each scheme were calculated on the basis of yearly data collected.6 6. firstly the average S&P CNX NIFTY for the past five years (30.19 15.98 BUILDER RELIANCE 30. FUND NAME AVG OF INCREASE FUND RETURN 25. Finally the average S&P CNX NIFTY and average returns were compared on the basis of the increase in points TABLE 13 RANKING OF SCHEMES IN THE 4 STAR RATING USING 5 YEAR RETURN PERFORMANCE (2005-2009) AVG. OF S&P CNX NIFTY BIRLA SUN LIFE 30.62 2 3 1 5 31 .98 YIELD Source: Secondary data.02 4.98 ASSET ALLOCATION AGGRESSIVE CANARA 30.17 46 32.38 6 34.98 GROWTH TATA DIVDENT 30.02 1.82 4 37 35.

CHART 3 CHARTS SHOWING TOP SHEMES ON RETURN BASIS 50 45 40 35 30 25 20 15 10 5 0 BIRLA SUN LIFE CANARA ROBCO DSPBR HDFC CAPITAL ASSET EQUITY OPPORTUNITIES BUILDER ALLOCATION DIVERSIFIED AGGRESSIVE RELIANCE GROWTH TATA DIVDENT YIELD INTERPRETATION The above table and chart gives the detail of how the return of schemes performed in all the 5 years in relation with the S&P CNX NIFTY. When the five years average return was compared with average return S&P CNX NIFTY returns and the difference ranked for each scheme Sundaram Reliance Growth was ranked as 1 32 .

54 3 5 4 3 2 33 . The average S&P CNX NIFTY stood at 0.99 points. Finally the average &P CNX NIFTY and average return were compared and the schemes were ranked on the basis of increase in points Table 14 PERFORMANCE EVALUATION OF SCHEMES BY USING SHAREP MODEL FUND NAME BIRLA SUN LIFE ASSET ALLOCATION AGGRESSIVE CANARA ROBCO EQUITY DIVERSIFIED DSPBR OPPORTUNITIES HDFC CAPITAL BUILDER RELIANCE GROWTH TATA DIVDENT YIELD Source: Secondary data.61 0. Then the average return index of 5 years of each scheme was calculated on the basis of yearly data retrieved.59 0.99 0.45 0.RANKING OF SCHEMES IN 4 STAR USING SHAREPE MODEL OF PERFORMANCE EVALUATION (2005-2009) To identify the top schemes in the 4star rated class for past five years according to Sharpe model.59 0.48 DECREASE RANK 0.99 0. S&P CNX NIFTY RATIO 0.99 0.40 0.99 SHAREP RATIO RETURN 0.99 0.38 0. firstly the average S&P CNX NIFTY index for 5 year was calculated on the basis of the past five years annual S&P CNX NIFTY rates.67 0.32 .40 0.99 0.51 1 0.

CHART 4 TOP SCHEMES ON RANK BASIS BY SHAREP RATIO 6 5 4 3 2 1 0 BIRLA SUN LIFE CANARA ROBCO DSPBR HDFC CAPITAL ASSET EQUITY OPPORTUNITIES BUILDER ALLOCATION DIVERSIFIED AGGRESSIVE RELIANCE GROWTH TATA DIVDENT YIELD INTERPRETATION The above table and chart are the comparison of Sharpe and S&P CNX NIFTY return with the Sharpe scheme return to rank the top players according to Sharpe theory. In the past 5 years according to Sharpe theory Birla Sun Life Allocation Aggressive is got first rank 34 . The difference has noted and ranked in the past 5 years according to Sharpe theory.

34 REG.G. INTERPRETATION From the above table it is found out that Franklin India Prime and Escorts Growth are the two schemes which performed well during the year 2005 RETURN 54.95 17.73 35 .07 INCREASE 17. ESCORTS 36.COMPARISON OF 3 STAR RATED SCHEMES IN THE CATEGORY OF EQUITY DIVERSIFIED WITH THE S&P CNX NIFTY OF THE RESPECTIVE YEAR Here selected 6 schemes from 3 star rated mutual fund in the category of equity diversified.97 5.34 PRUDENTIAL POWER FRANKLIN INDIA 36.34 PARIBA GROWTH Source: Secondary data.34 EQUITY DSPBR T.98 21.66 11.23 18.32 58.34 PRIMA SUNDARAM BNP 36.29 53.34 GROWTH ICICI 36.I. The returns of the scheme are compared to the S&P CNX NIFTY and then their differences are calculated in the following table TABLE 15 S&P CNX NIFTY AND RETURNS OF THE SCHEMES FOR THE YEAR 2005 FUND NAME S&P CNX NIFTY BIRLA SUN LIFE 36.E.57 55 48.R 36.31 42.

32 58.29 53.83 39.74 8.G. ESCORTS GROWTH ICICI PRUDENTIAL POWER FRANKLIN INDIA PRIMA SUNDARAM BNP PARIBA GROWTH Source: Secondary data.48 2.83 39.R REG.57 55 48.E.83 39.24 36 .83 RETURN 54. INTERPRETATION From the above table it is found out that Franklin India Prime are the two schemes which performed well during the year 2006 S&P CNX NIFTY 39.46 13.49 8.31 42.83 39.07 INCREASE 14.I.83 39.49 18.TABLE 16 S&P CNX NIFTY AND RETURNS OF THE SCHEMES FOR THE YEAR 2006 FUND NAME BIRLA SUN LIFE EQUITY DSPBR T.

I.R REG.77 BNP PARIBA GROWTH Source: Secondary data.E.TABLE 17 S&P CNX NIFTY AND RETURNS OF THE SCHEMES FOR THE YEAR 2007 FUND NAME S&P CNX NIFTY RETURN 69.77 INDIA PRIMA SUNDARAM 54.G. ESCORTS 54.R Reg.75 49.77 LIFE EQUITY DSPBR 54.E.I. and Escorts Growth are the two schemes which performed well during the year 2007 37 .G.91 82.77 17 INCREASE 15.77 PRUDENTIAL POWER FRANKLIN 54.14 28.85 78.98 4.77 T.88 47.12 DECREASE BIRLA SUN 54.89 7.77 GROWTH ICICI 54. INTERPRETATION From the above table it is found out that DSPBR T.08 23.65 71.

37 3.46 -57. which will adversely.79 FUND RETURN -56.R REG. All funds have negative values. S&P CNX NIFTY -51.32 -62.7 INTERPRETATION From the above table.TABLE 18 S&P CNX NIFTY AND RETURNS OF THE SCHEMES FOR THE YEAR 2008 FUND NAME BIRLA SUN LIFE EQUITY DSPBR T.19 -59.16 -55.I. ESCORTS GROWTH ICICI PRUDENTIAL POWER FRANKLIN INDIA PRIMA SUNDARAM BNP PARIBA GROWTH Source: Secondary data.79 -51. affects the performance of the funds.49 DECREASE 4.79 -51.53 10.E.G.79 -51. which shows the loss to the investor 38 . it shows that. there was a drastic change in the marketing conditions.67 5.62 -58.83 6.79 -51.79 -51.4 7.

53 DECREASE BIRLA SUN LIFE EQUITY DSPBR T.I.R REG.76 75.TABLE 19 S&P CNX NIFTY AND RETURNS OF THE SCHEMES FOR THE YEAR 2009 FUND NAME S&P CNX NIFTY 75.76 75. INTERPRETATION From the above table it is found out that Franklin India Prime are the two schemes which performed well during the year 2009 39 . ESCORTS GROWTH ICICI PRUDENTIAL POWER FRANKLIN INDIA PRIMA SUNDARAM BNP PARIBA GROWTH Source: Secondary data.76 75.33 3.46 73.25 75.49 0.73 31.33 8.7 2.76 75.E.23 84.G.76 FUND RETURN 89.76 75.29 107.43 INCREASE 13.99 72.

40 . Finally the average S&P CNX NIFTY and average returns were compared on the basis of the increase in points TABLE 20 RANKING OF SCHEMES IN THE 3 STAR RATING USING 5 YEAR RETURN PERFORMANCE (2005-2009) FUND NAME AVG.98 AVG.RANKING OF SCHEMES IN THE 3 STAR RATING USING 5 YEAR RETURN PERFORMANCE OF THE SCHEMES (2005-2009) To identify the top schemes in the 3 star rated class for the past five years.3 4.2 3.98) was calculated.2 34. firstly the average S&P CNX NIFTY for the past five years (30.9 41.E.G. Then the average returns of each scheme were calculated on the basis of yearly data collected.98 30.98 30.98 30.85 3.33 35.27 35.5 INCREASE 8.I. OF S&P CNX NIFTY 30.R REG.52 RANK 2 1 3 4 5 6 BIRLA SUN LIFE EQUITY DSPBR T. ESCORTS GROWTH ICICI PRUDENTIAL POWER FRANKLIN INDIA PRIMA SUNDARAM BNP PARIBA GROWTH Source: Secondary data. OF RETURN 39.83 34.9 10.98 30.35 4.98 30.

G.R Reg. ranked as 1 41 .G.I.R REG. In this DSPBR T. ESCORTS GROWTH ICICI FRANKLIN SUNDARAM PRUDENTIAL INDIA PRIMA BNP PARIBA POWER GROWTH INTERPRETATION The above table and chart gives the detail of how the return of schemes performed in all the 5 years in relation with the S&P CNX NIFTY.E.CHART 5 SCHARTS SHOWING TOP SHEMES ON RETURN BASIS 42 40 38 36 34 32 30 BIRLA SUN DSPBR LIFE EQUITY T.I. By the 5 years average comparison could find which scheme is performing well.E.

24 0. 42 .G.E.81 0.99 0. ESCORTS GROWTH ICICI PRUDENTIAL POWER FRANKLIN INDIA PRIMA SUNDARAM BNP PARIBA GROWTH Source: Secondary data.99 0.20 DECREASE 0. firstly the average S&P CNX NIFTY index for 5 year was calculated on the basis of the past five years annual S&P CNX NIFTY rates.99 SHAREP RATIO OF RETURN 0.RANKING OF SCHEMES IN 3 STAR USING SHARPE MODEL OF PERFORMANCE EVALUATION (2005-2009) To identify the top schemes in the 5star rated class for past five years according to Sharpe model.79 RANK 3 5 6 2 1 4 BIRLA SUN LIFE EQUITY DSPBR T.I.75 0.18 0.23 0.75 points. The average S&P CNX NIFTY stood at 0.99 0.74 0.83 0. Then the average return index of 5 years of each scheme was calculated on the basis of yearly data retrieved.99 0.16 0.R REG.76 0.25 0.99 0. Finally the average &P CNX NIFTY and average return were compared and the schemes were ranked on the basis of increase in points Table 21 PERFORMANCE EVALUATION OF SCHEMES BY USING SHARPE MODEL FUND NAME S&P CNX NIFTY RATIO 0.

E.I. The difference has noted and ranked in the past 5 years according to Sharpe theory.CHART 6 TOP SCHEMES ON RANK BASIS BY SHARPE RATIO 7 6 5 4 3 2 1 0 BIRLA SUN DSPBR ESCORTS LIFE EQUITY T.G.R REG. In the past 5 years according to Sharpe theory Franklin India Prima got first rank 43 . GROWTH ICICI FRANKLIN SUNDARAM PRUDENTIAL INDIA PRIMA BNP PARIBA POWER GROWTH INTERPRETATION The above table and chart are the comparison of Sharpe and S&P CNX NIFTY return with the Sharpe scheme return to rank the top players according to Sharpe theory.

66 44 .91 18.38 48.34 36.34 36.34 RETURN 43.33 57 INCRESE 6.34 36.34 36.03 41.04 11.99 20. The returns of the scheme are compared to the S&P CNX NIFTY and then their differences are calculated in the following table TABLE 22 S&P CNX NIFTY AND RETURNS OF THE SCHEMES FOR THE YEAR 2005 FUND NAME BIRLA SUNLIFE ADVANTAGE FORTIS EQUITY FRANKLIN INDIA OPPORTUNITIES L&T GROWTH TATA GROWTH UTI INFRASTRUCTURE Source: Secondary data.69 5.5 5.34 36.84 42.25 54.COMPARISON OF 2 STAR RATED SCHEMES IN THE CATEGORY OF EQUITY DIVERSIFIED WITH THE S&P CNX NIFTY OF THE RESPECTIVE YEAR Here selected 6 schemes from 2 star rated mutual fund in the category of equity diversified. INTERPRETATION From the above table it is found out that UTI and Fortis Equity are the two schemes which performed well during the year 2005 S&P CNX NIFTY 36.

48 INFRASTRUCTURE Source: Secondary data.25 17.77 54. INTERPRETATION From the above table it is found out that UTI and Fortis Equity are the two schemes which performed well during the year 2007 S&P CNX NIFTY 54.83 56.44 2.83 21.77 54.53 0.77 54.79 51.77 13.83 37.83 27 UTI 39.83 38.89 TATA GROWTH 39.77 54.06 12.TABLE 23 S&P CNX NIFTY AND RETURNS OF THE SCHEMES FOR THE YEAR 2006 FUND NAME S&P CNX RETURN NIFTY BIRLA SUNLIFE 39.02 16.26 0.54 68.83 61.65 45 .83 34.24 INCRESE 1.98 3.7 DECREASE INCRESE DECREASE 5.30 53.02 72. INTERPRETATION From the above table it is found out that UTI and Franklin India Opportunities are the two schemes which performed well during the year 2006 TABLE 24 S&P CNX NIFTY AND RETURNS OF THE SCHEMES FOR THE YEAR 2007 FUND NAME BIRLA SUNLIFE ADVANTAGE FORTIS EQUITY FRANKLIN INDIA OPPORTUNITIES L&T GROWTH TATA GROWTH UTI I NFRASTRUCTURE Source: Secondary data.01 10.09 OPPORTUNITIES L&T GROWTH 39.39 ADVANTAGE FORTIS EQUITY 39.81 FRANKLIN INDIA 39.77 54.07 65.77 FUND RETURN 56.

38 -56.23 -56.88 91.32 DECREASE 6.12 15.74 6. there was a drastic change in the marketing conditions.84 INCRESE 11.76 75.44 4.53 TABLE 26 S&P CNX NIFTY AND RETURNS OF THE SCHEMES FOR THE YEAR 2009 FUND NAME BIRLA SUNLIFE ADVANTAGE FORTIS EQUITY FRANKLIN INDIA OPPORTUNITIES L&T GROWTH TATA GROWTH UTI INFRASTRUCTURE Source: Secondary data. INTERPRETATION From the above table.TABLE 25 S&P CNX NIFTY AND RETURNS OF THE SCHEMES FOR THE YEAR 2008 FUND NAME BIRLA SUNLIFE ADVANTAGE FORTIS EQUITY FRANKLIN INDIA OPPORTUNITIES L&T GROWTH TATA GROWTH UTI I NFRASTRUCTURE Source: Secondary data. which shows the loss to the investor S&P CNX NIFTY -51.08 DECREASE 46 .79 -51.68 75.76 RETURN 87.79 -51.53 -58. it shows that.79 -51.92 0.76 75. INTERPRETATION From the above table it is found out that TATA growth and Birla Sun Life Advantage are the two schemes which performed well during the year 2009 S&P CNX NIFTY 75.79 -51.59 4.04 -58.79 -51.76 75.52 19 2. which will adversely. affects the performance of the funds.72 -60.89 9.79 RETURN -58.25 6.65 65.39 8.28 56.76 73.76 75.76 75. All funds have negative values.

64 1.98 30.98 30. OF S&P CNX NIFTY 30.8 33 33.62 32.98) was calculated.73 1.3 1. Finally the average S&P CNX NIFTY and average returns were compared on the basis of the increase in points TABLE 27 RANKING OF SCHEMES IN THE 2 STAR RATING USING 5 YEAR RETURN PERFORMANCE (2005-2009) AVG. firstly the average S&P CNX NIFTY for the past five years (30.98 30.RANKING OF SCHEMES IN THE 3 STAR RATING USING 5 YEAR RETURN PERFORMANCE OF THE SCHEMES (2005-2009) To identify the top schemes in the 3 star rated class for the past five years.3 34.02 2.32 3.98 FUND NAME AVG.98 30.98 30.71 29. OF RETURN INCRESE DECREASE RANK BIRLA SUNLIFE ADVANTAGE FORTIS EQUITY FRANKLIN INDIA OPPORTUNITIES L&T GROWTH TATA GROWTH UTI INFRASTRUCTURE Source: Secondary data.18 2. Then the average returns of each scheme were calculated on the basis of yearly data collected. 32.35 4 5 1 6 3 2 47 .

48 .CHART 7 CHART SHOWING TOP SCHEMES ON RETURN BASIS 36 35 34 33 32 31 30 29 28 27 BIRLA SUNLIFE ADVANTAGE FORTIS EQUITY FRANKLIN INDIA OPPORTUNITIES L&T GROWTH TATA GROWTH UTI INFRASTRUCTURE INTERPRETATION The above table and chart gives the detail of how the return of schemes performed in all the 5 years in relation with the S&P CNX NIFTY. By the 5 years average comparison could find which scheme is performing well. In this Franklin India Opportunities got first rank.

81 0. firstly the average S&P CNX NIFTY index for 2 year was calculated on the basis of the past five years annual S&P CNX NIFTY rates.78 0.99 0.RANKING OF SCHEMES IN 2 STAR USING SHAREP MODEL OF PERFORMANCE EVALUATION (2005-2009) To identify the top schemes in the 2star rated class for past five years according to Sharpe model.99 0.04 FUND NAME BIRLA SUNLIFE ADVANTAGE FORTIS EQUITY FRANKLIN INDIA OPPORTUNITIES L&T GROWTH TATA GROWTH UTI INFRASTRUCTURE Source: Secondary data. Finally the average S&P CNX NIFTY and average return were compared and the schemes were ranked on the basis of increase in points Table 28 PERFORMANCE EVALUATION OF SCHEMES BY USING SHAREP MODEL S&P CNX NIFTY RATIO 0.11 0.94 0. DECREASE RANK 0.99 0.21 0.05 0.18 0.83 0.16 0.75 points.99 0.88 0.99 0.99 SHAREP RATIO OF FUND RETURN 0. The average S&P CNX NIFTY stood at 0.95 2 5 4 3 1 6 49 . Then the average return index of 5 years of each scheme was calculated on the basis of yearly data retrieved.

CHART 9 TOP SCHEMES ON RANK BASIS BY SHARPE RATIO 7 6 5 4 3 2 1 0 BIRLA SUNLIFE ADVANTAGE FORTIS EQUITY FRANKLIN INDIA OPPORTUNITIES L&T GROWTH TATA GROWTH UTI INFRASTRUCTURE INTERPRETATION The above table and chart are the comparison of Sharpe and S&P CNX NIFTY return with the Sharpe scheme return to rank the top players according to Sharpe theory. The difference has noted and ranked in the past 5 years according to Sharpe theory. In the past 5 years according to Sharpe theory TATA Growth got first rank 50 .

83 DISCOVERY Source: Secondary data.41 DECREASE JM EQUITY TAURUS 39.34 DISCOVERY Source: Secondary data.COMPARISON OF 1 STAR RATED SCHEMES IN THE CATEGORY OF EQUITY DIVERSIFIED WITH THE S&P CNX NIFTY OF THE RESPECTIVE YEAR Here selected 6 schemes from 1 star rated mutual fund in the category of equity diversified.21 TABLE 30 S&P CNX NIFTY AND RETURNS OF THE SCHEMES FOR THE YEAR 2006 FUND NAME S&P CNX NIFTY 39.55 INCREASE 15.18 46.26 29.84 10. The returns of the scheme are compared to the S&P CNX NIFTY and then their differences are calculated in the following table TABLE 29 S&P CNX NIFTY AND RETURNS OF THE SCHEMES FOR THE YEAR 2005 FUND NAME S&P CNX NIFTY JM EQUITY 36. INTERPRETATION From the above table it is found out that JM Equity is the schemes which performed well during the year 2006 51 .34 TAURUS 36.83 RETURN 44. INTERPRETATION From the above table it is found out that the scheme JM Equity which performed well during the year 2005 RETURN 52.42 INCREASE 4.09 10.

All funds have negative values.75 100.79 DISCOVERY Source: Secondary data. it shows that. there was a drastic change in the marketing conditions.77 DISCOVERY Source: Secondary data INTERPRETATION From the above table it is found out that Taurus Discovery is the scheme which performed well during the year 2007 TABLE 32 S&P CNX NIFTY AND RETURNS OF THE SCHEMES FOR THE YEAR 2008 FUND NAME S&P CNX NIFTY JM EQUITY -51.17 DECREASE 9.54 -75. which shows the loss to the investor RETURN -61.75 23.79 TAURUS -51.77 RETURN 46.71 45.38 52 . INTERPRETATION From the above table. affects the performance of the funds.TABLE 31 S&P CNX NIFTY AND RETURNS OF THE SCHEMES FOR THE YEAR 2007 FUND NAME S&P CNX NIFTY 54. which will adversely.02 JM EQUITY TAURUS 54.94 INCREASE DECREASE 8.

OF RETURN 28.OF S&P CNX NIFTY 30. INTERPRETATION From the above table it is found out that JM Equity is the scheme which performed well during the year 2009 RANKING OF SCHEMES IN THE 3 STAR RATING USING 5 YEAR RETURN PERFORMANCE OF THE SCHEMES (2005-2009) To identify the top schemes in the 3 star rated class for the past five years. 53 .98) was calculated.61 RANK 2 1 JM EQUITY TAURUS 30.16 INCREASE DECREASE 15.39 90.76 DISCOVERY Source: Secondary data. firstly the average S&P CNX NIFTY for the past five years (30.TABLE 33 S&P CNX NIFTY AND RETURNS OF THE SCHEMES FOR THE YEAR 2009 FUND NAME S&P CNX NIFTY 75.98 DISCOVERY Source: Secondary data.69 3.71 INCREASE DECREASE 2.37 JM EQUITY TAURUS 75. Then the average returns of each scheme were calculated on the basis of yearly data collected.92 15.37 34.76 RETURN 60.98 AVG. Finally the average S&P CNX NIFTY and average returns were compared on the basis of the increase in points RANKING OF SCHEMES IN THE 3 STAR RATING USING 5 YEAR RETURN PERFORMANCE (2005-2009) TABLE 34 FUND NAME AVG.

In this Taurus Discovery got first rank.CHART 9 CHART SHOWING TOP SCHEMES ON RETURN BASIS 40 35 30 25 20 15 10 5 0 JM EQUITY TAURUS DISCOVERY INTERPRETATION The above table and chart gives the detail of how the return of schemes performed in all the 5 years in relation with the S&P CNX NIFTY. By the 5 years average comparison could find which scheme is performing well. 54 .

99 SHARPE RATIO RETURN -0.99 DISCOVERY Source: Secondary data.RANKING OF SCHEMES IN 2 STAR USING SHAREP MODEL OF PERFORMANCE EVALUATION (2005-2009) To identify the top schemes in the 2star rated class for past five years according to Sharpe model. firstly the average S&P CNX NIFTY index for 2 year was calculated on the basis of the past five years annual S&P CNX NIFTY rates.O6 0.75 points. Then the average return index of 5 years of each scheme was calculated on the basis of yearly data retrieved. 55 .07 000 DECREASE 1.99 RANK 2 1 JM EQUITY TAURUS 0. Finally the average S&P CNX NIFTY and average return were compared and the schemes were ranked on the basis of increase in points Table 35 PERFORMANCE EVALUATION OF SCHEMES BY USING SHAREP MODEL FUND NAME RATIO OF S&P CNX NIFTY 0. The average S&P CNX NIFTY stood at 0.

5 1 0.5 2 1. In the past 5 years according to Sharpe theory Taurus Discovery is ranked with 1st 56 .CHART 10 TOP SCHEMES ON RANK BASIS BY SHARPE RATIO 2.5 0 JM EQUITY TAURUS DISCOVERY INTERPRETATION The above table and chart are the comparison of Sharpe and S&P CNX NIFTY return with the Sharpe scheme return to rank the top players according to Sharpe theory. The difference has noted and ranked in the past 5 years according to Sharpe theory.

is ranked as First.35 points.02points.1 FINDINGS  In five star rating schemes when the five year average return was compared with average S&P CNX NIFTY return Sundaram BNP Pariba selected midcap Reg.R Reg.I.  In the ranking of schemes in four star using Sharpe model of performance evaluation (2005-2009) Birla Sun Life Asset Allocation Aggressive is ranked as First  In three star rating scheme when the five year average return was compared with average S&P CNX NFTY return DSPBR T.33 points. was ranked as First with an increase of 17. SUGGESTIONS AND CONCLUSION 4.E. was ranked as First with an increase of 10.  In the ranking of schemes in five star using Sharpe model of performance evaluation (2005-2009) Sundaram BNP Pariba selected midcap Reg.71 points  In the ranking of schemes in one star using Sharpe model of performance evaluation (2005-2009) Taurus Discovery is ranked as First 57 .73 points  In the ranking of scheme in two star using Sharpe model of performance evaluation (2005-2009)TATA Growth is ranked as first  In one star rating scheme when the five year average return was compared with average S&P CNX NIFTY return Taurus Discovery was ranked as First with an increase of 3.G.CHAPTER ± IV SUMMARY OF FINDINGS.  In the ranking of schemes in three star using Sharpe model of performance evaluation (2005-2009) Franklin India Prima is ranked as First  In two star rating scheme when the five year average return was compared with average S&P CNX NIFTY return Franklin India Opportunities was ranked as First with an increase of 3.  In four star rating scheme when the five year average return was compared with average S&P CNX NIFTY return Reliance Growth was ranked as First with an increase of 15.

This would affect long term prospective of the investor of consistent good returns.2 SUGGESTIONS On the basis of the study the following suggestions are given in respect of the mutual fund schemes  Investing in equity diversified mutual fund is different from the usual categories of mutual fund schemes. Each scheme has performed well on annual basis in one year or other but when the average returns are taken all schemes is not the same. it¶s better to choose the scheme which has good return according to Sharpe model as the schemes are better on return basis as well as the risk factor involved in it  When the selection is purely on the basis of the return there are more chances of fluctuations in the returns. The analysis of the schemes in the past 5 years help in finding out the right scheme and also the right fund manager to trust. which gives good return and the same time as a consistency in the return. In mutual fund is as safe or unsafe as the asset that it invests in. While choosing the schemes. It is as risky as investing in the equity market directly. The default in any single investment will not affect the overall performance of the fund in a significant manner. 4. Hence investor has limited exposure to the competencies of each of the fund manager.4.  In the finding of the study schemes with good return and risk adjusted returns are obtained.  In the category of schemes according to the rating of credit rating agencies. In the diversified category since the amount is invested mainly in the equity the fluctuations in the market affect the returns of the schemes  While choosing the mutual fund scheme in the equity sector emphasis must be made on the scheme. 58 . There are schemes with different returns.3 CONCLUSION Mutual funds are not free from risk and no one guarantee assured income from mutual funds. The only the difference is that the investing is done by the fund managers not the investors. However investing in equity sector of the mutual funds is completely in the hands of the fund managers.

This study will help the Geojit BNP Paribas Financial service Ltd. as well as other regulatory authorities to forward with promotional and other awareness programs to educate the investors at their best 59 .

com www.com www. Mutualfundindia.nseindia.BIBLIOGRAPHY BOOKS: SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT Donald E Fisher and Jordan.com www. The Bombay Stock Exchange Publication. GUIDE TO MUTUAL FUND INVESTING. Mc Graw Hill Publication. Valueresearchonline. INTERNET SITES: www.indiainfoline.com www.com 60 .com www. Geojit.amfi.

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