Mutual Fund

OVERVIEW OF DIFFERENT MUTUAL FUNDS
SCHEMES IN INDIA
CHAPTER 1
INTRODUCTION
JYOTI NIVAS COLLEGE (AUTONOMOUS) Page 1

SCHEMES IN INDIA
Meaning of Finance
A branch of economics concerned with resource allocation as well

as resource management, acquisition and investment. Simply,
finance deals with matters related to money and the markets.
Definition of Finance
1. The science of raising and expending the public revenue.
2. The commercial activity of providing funds and capital.
3. The management of money and credit and banking and

investments.
4. The branch of economics that studies the management of

money and other assets.
Importance of Finance
Why is finance important?
• Ensure that there are adequate funds available to acquire

the resources needed to help the Organization achieve its
objectives;
• Ensure costs are controlled;
• Ensure adequate cash flow;
• Establish and control profitability levels.
One of the major roles of the finance department is to identify

appropriate financial information prior to communicating this
information to managers and decision-makers, in order that they
may make judgments and decisions.

SCHEMES IN INDIA
Finance also prepares financial documents and final accounts for

managers to use and for reporting purposes (AGM etc).

SCHEMES IN INDIA
Financial Management Objectives
Efficient Financial management requires of some objectives,

which are as follows:
1) Profit Maximization:
Objective of financial management is same as the objective of a

company that is to earn profit. But profit maximization cannot be
the sole objective of a company. It is a limited objective. If profits
are given undue importance then problems may arise as
discussed below
The term profit is vague and it involves much more

contradictions. Profit maximization has to be attempted with a
realization of risks involved. A positive relationship exits between
risk and profits. So both risk and profit objectives should be
balanced.
Profit Maximization does not take into account the time pattern of
returns. Profit maximization fails to take into account the social
considerations.
2) Wealth Maximization:
It is commonly agreed that the objective of a firm is to maximize

value or wealth.
Value of a firm is represented by the market price of the

company’s common stock. The market price of a firm’s stock
represents the focal judgment of all market participants as to
what the value of the particular firm id. It takes into account
present and prospective future earnings per share, the timing and
risk of these earnings, the dividend policy of the firm and many
other factors that bear upon the market price of the stock. Market

SCHEMES IN INDIA
price acts as the performance index or report card of the firm’s

progress.
Prices in the share markets are largely affected by many factors

like general economic outlook, outlook of particular company,
technical factors and even mass psychology. Normally this value
is a function of two factors as given below:-
The anticipated rate of earnings per share of the company.
The Capitalization Rate.
The likely rate of earnings per share (EPS) depends upon the
assessment as to how profitably a company is growing to operate
in the future.
The capitalization rate affects the liking of the investors for the
company.
Methods of Financial Management
In the field of financing there are various methods to procure

funds. Funds maybe obtained from long-term sources as well as
from short-term sources. Long-term funds may be availed by
owners that are shareholders, lenders by issuing debentures,
from financial institutions, banks and public at large. Short-term
funds may availed from commercial banks public deposits, etc.
financial Leverage or trading on equity is an important method by
which a finance manager may increase the return to common
shareholders.
At the time of evaluating capital expenditure projects methods

like average rate of return, pay back, internal rate of returns, net
present value and profitability index are used. A firm can increase
its profitability without affecting its liquidity by an efficient
utilization of the current resources at the disposal of the firm. A

SCHEMES IN INDIA
firm can increase its profitability without affecting by an efficient

management of working capital.
Similarly for the evaluation of a firm’s performance there are

different methods. Ratio analysis is a popular technique to
evaluate different aspects of a firm. An investor takes into
account various ratios to know whether investment in a particular
company will be profitable or not. These ratios enable him to
judge the profitability, solvency, liquidity and growth aspects of
the firm.
UNDERSTANDING MUTUAL FUND
Mutual fund is a trust that pools money from a group of investors

(sharing common financial goals) and invest the money thus
collected into asset classes that match the stated investment
objectives of the scheme. Since the stated investment objectives
of a mutual fund scheme generally form the basis for an
investor’s decision to contribute money to the pool, a mutual fund
can not deviate from its stated objectives at any point of time.

SCHEMES IN INDIA
Every Mutual Fund is managed by a fund manager, who using his

investment management skills and necessary research works
ensures much better return than what an investor can manage on
his own. The capital appreciation and other incomes earned from
these investments are passed on to the investors (also known as
unit holders) in proportion of the number of units they own.
Passed Pool their

back money
Generat
Invest
es
in

SCHEMES IN INDIA
When an investor subscribes for the units of a mutual fund, he

becomes part owner of the assets of the fund in the same
proportion as his contribution amount put up with the corpus (the
total amount of the fund). Mutual Fund investor is also known as a
mutual fund shareholder or a unit holder.
Any change in the investments made into capital market

instruments (such as shares, debentures etc) is reflected in the
Net Asset Value(NAV) of the scheme. NAV is defined as the
market value of the Mutual Fund scheme’s assets net of its
liabilities. NAV of a scheme is calculated by dividing the market
value of scheme’s assets by the total number of units issued to its
investors.
For example:
a. If the market value of the assets of a fund is Rs. 100,000.

SCHEMES IN INDIA
b. The total number of units issued to the investors is equal to

10,000.
c. Then the NAV of this scheme=(A)/(B), i.e. 100,000/10,000

or 10.00.
d. Now if an investor ‘X’ owns 5units of this scheme.
e. Then his total contribution to the fund is Rs. 50 (i.e. Number

of units held multiplied by the NAV of the scheme).
ORGANISATION OF A MUTUAL FUND
There are many entities involved and the diagram below

illustrates the organizational set up of a mutual fund:

SCHEMES IN INDIA
ADVANTAGES OF MUTUAL FUND
1. Portfolio Diversification: - Mutual Funds invest in a well-

diversified portfolio of securities which enables to hold a
diversified investment portfolio (whether the amount of
investment is big or small).
2. Professional Management: - Fund manager undergoes

through various research works and has better investment
management skills which ensure higher returns than what he
can manage on his own.
3. Less Risk: - Investors acquire a diversified portfolio of

securities even with a small investment in a Mutual Fund. The
risk in a diversified portfolio is lesser than investing in merely 2
or 3 securities.
4. Low Transaction: - Costs due to economies of scale (benefits

of larger volumes), mutual funds pay lesser transaction costs.
These benefits are passed on to the investors.
5. Liquidity: - An investor may not be able to sell some of the

shares held by him very easily and quickly, whereas units of a
mutual fund are far more liquid.
6. Choice of Schemes: - Mutual Funds provide investors with

various schemes with different investment objectives.
Investors have the option of investing in a scheme having a
correlation between its investment objectives and their own
financial goals. These schemes further have different
plans/options.
7. Transparency: - Funds provide investors with updated

information pertaining to the markets and the schemes. All

SCHEMES IN INDIA
material facts are disclosed to the investors as required by the

regulator.
8. Flexibility: - Investors also benefit from the convenience and

flexibility offered by Mutual Funds. Investors can switch their
holdings from a debt scheme to an equity scheme and vice-
versa. Option of systematic (at regular intervals) investment
and withdrawal is offered to the investors in most open-end
schemes.
9. Safety: - Mutual Fund industry is a part of a well-regulated

investment environment where the interests of the investors
are protected by the regulator. All funds are registered with
SEBI and complete transparency is forced.
DISADVANTAGES OF MUTUAL FUND
1. Costs Control Not in the Hands of an investor: - Investor

has to pay investment management fees and fund distribution
costs as a percentage of the value of his investments (as long
as he holds the units), irrespective of the performance of the
fund.
2. No Customized Portfolios: - The portfolio of securities in

which a fund invests is a decision taken by the fund manager.
Investors have no right to interfere in the decision making
process of a fund manager, which some investors find as a
constraint in achieving their financial objectives.
3. Difficulty in Selecting Suitable Fund Scheme: - Many

investors find it difficult to select one option from the plethora
of funds/schemes/plans available. For this, they may have to
take advice from financial planners in order to invest on the
right fund to achieve their objectives.
SCHEMES IN INDIA

SCHEMES IN INDIA
TYPES OF MUTUAL FUNDS
General Classification of Mutual funds
Open-end Funds
Funds that can sell and purchase units at a point in time are
classified as Open-end Funds. The fund size (corpus) of an open-
end fund is variable (keeps changing) because of continuous
selling (to investors) and repurchases (from the investors) by the
fund. An open-end fund is not required to keep selling new units
to the investors at all times but is required to always repurchase,
when an investor wants to sell his units. The NAV of an open-end
fund is calculated every day.
Close-end Funds
Funds that can sell a fixed number of units only during the New
Fund offer (NFO) period are known as Closed-end Funds. The
corpus of a Closed-end Fund remains unchanged at all times.
After the closure of the offer, buying redemption of units by the
investors directly from the funds is not allowed. However, to
protect the interests of the investors, SEBI provides investors with
two avenues to liquidate their positions:
• Closed-end Funds are listed on the stock exchanged where

investors can buy/sell units from/to each other. The trading
is generally done at a discount to the NAV of the scheme.
The NAV of a closed-end fund is computed on a weekly
basis (updated every Thursday).
• Closed-end Funds may also offer “buy-back of units” to the

units holders. In this case, the corpus of the Fund and its
outstanding units do get changed.

SCHEMES IN INDIA
Load Funds
Mutual funds incur various expenses on marketing, distribution,

advertising, portfolio churning, fund manager’s salary etc. Many
funds recover these expenses from the investors in the form of
load. These funds are known as Load Funds. A load fund may
impose following types of loads on the investors:
• Entry Load- Also Known as Front-end load, it refers to the

load charged to an investor at the time of his entry into a
scheme. Entry load is deducted from the investor’s
contribution amount to the fund.
• Exit Load- Also known as Back-end load, these charges are

imposed on an investor when he redeems his units (exits
from the scheme). Exit load is deducted from the
redemption proceeds to an outgoing investor.
• Deferred Load- Deferred load is charged to the scheme

over a period of time.
• Contingent Deferred Sales Charge (CDSC) - In some

schemes, the percentage of exit load reduces as the
investor stays longer with the fund. This type of load is
known as Contingent Deferred Sales Charge.
No-load Funds
All those funds that do not change any of the above mentioned
loads are known as No-load Funds.
Tax-exempt Funds
Funds that invest in securities free from tax are known as Tax-
exempt Funds. All open-end equity oriented funds exempt from
distribution tax (tax for distribution income to investors). Long

SCHEMES IN INDIA
term capital gains and dividend income in the hands of investors

are tax-free.

SCHEMES IN INDIA
Non-Tax-exempt Funds
Funds that invest in taxable securities are known as Non-Tax-

Exempt Funds. In India, all funds, except open-end equity
oriented funds are liable to pay tax on distribution income. Profits
arising out of sale of units by an investor within 12months of
purchase are categorized as short-term capital gains, which are
taxable. Sale of units of an equity oriented fund is subject to
Securities Transaction Tax (STT). STT is deducted from the
redemption proceeds to an investor.
BROAD MUTUAL FUND TYPES

SCHEMES IN INDIA
1. Equity Funds
Equity funds are considered to be the more risky funds as

compared to the other types of fund, but they also provide higher
returns than any other funds. It is advisable that an investor
looking to invest in an equity fund should invest for long term i.e.
for 3years or more. There are different types of equity funds each
falling into different risk bracket. In the order if decreasing risk
level, there are following types of equity funds:
a. Aggressive Growth Funds: - in Aggressive Growth Funds,

fund managers aspire for maximum capital appreciation
and invest in less researched shares of speculative nature.
Because of these speculative investments Aggressive
Growth Funds become more volatile and thus, are prone to
higher risk than other equity funds.
b. Growth Funds: - Growth Funds also invest for capital

appreciation(with time horizon of 3 to 5 years) but they are
different from Aggressive Growth Funds in the sense that
they invest I companies that are expected to outperform
the market in the future. Without entirely adopting
speculative strategies, Growth Funds invest in those
companies that are expected to post above average
earnings in the future.
c. Specialty Funds: - Specialty Funds have stated criteria for

investments and their portfolio comprises of only those
companies that meet their criteria. Criteria for some
specialty funds could be to invest/ not to invest in particular
regions/companies. Specialty funds are concentrated and

SCHEMES IN INDIA
thus, are comparatively riskier than diversified funds. There

are following types of specialty funds:
i. Sector Funds: Equity Funds that invest in a particular

sector/industry of the market are known as Sector
Funds. The exposure of these funds is limited to a
particular sector (say Information Technology, Banking,
pharmaceuticals or Fast Moving Consumer Goods)
which is why they are more risky than equity funds that
invest in multiple sectors.
ii. Foreign Securities Funds: Foreign Securities Equity

Funds have the option to invest in one or more foreign
companies. Foreign securities fund achieve
international diversification and hence they are less
risky than sector funds. However, foreign securities
funds are exposed to foreign exchange rate risk and
country risk.
iii. Mid-Cap or Small-Cap Funds: Funds that invest in

companies having lower market capitalization than
larger capitalization companies are called Mid-Cap or
Small-Cap Funds. Market capitalization of Mid-Cap
companies is less than that if big, blue chip companies
(less than Rs. 2500 crores but more than Rs. 500
crores) and Small-Cap companies have market
capitalization of less than Rs. 500 crores. Market
Capitalization of a company can be calculated by
multiplying the market price of the company’s share by

SCHEMES IN INDIA
the total number of its outstanding shares in the

market. The shares of Mid-Cap or Small-Cap Companies
are not as liquid as Large-Cap Companies which gives
rise to volatility in share prices of these prices of these
companies and consequently, investment gets risky.
iv. Option Income Funds: While not yet available in

India, Option Income Funds write options on a large
fraction of their portfolio. Proper use of options can
help to reduce volatility, which is otherwise considered
as a risky instrument. These funds invest in big, high
dividend yielding companies, and then sell options
against their stock positions, which generate stable
income for investors.
d. Diversified Equity Funds- Except for a small portion of

investment in liquid money market, diversified equity funds
invest mainly in equities without any concentration on a
particular sector(s). These funds are well diversified and
reduce sector-specific or company-specific risk. However,
like all other funds diversified equity funds too are exposed
to equity market risk. One prominent type of diversified
equity fund in India is Equity Linked Savings Schemes
(ELSS). As per the mandate, a minimum of 90% of
investments by ELSS should be in equities at all times. ELSS
investors are eligible to claim deduction from taxable
income (up to Rs 1lakh) at the time of filing the income tax
return. ELSS usually has a lock-in period and in case of any
redemption by the investor before the expiry of the lock-in
period makes him liable to pay income tax on such

SCHEMES IN INDIA
income(s) for which he may have received any tax

exemption(s) in the past.
e. Equity Index Funds- Equity Index Funds have the

objective to match the performance of a specific stock
market index. The portfolio of these funds comprises of the
same companies that form the index and is constituted in
the same proportion as the index. Equity index funds that
follow broad indices (like S&P CNX Nifty, Sensex) are less
risky than equity index funds that follow narrow sectoral
indices (like BSEBANKEX or CNX Bank Index etc). narrow
indices are less diversified and therefore, are more risky.
f. Value Funds- Value Funds invest in those companies that

have sound fundamentals and whose share prices are
currently under-valued. The portfolio of the funds comprises
of share that are trading at a Low Price to Earning Ratio
( Market Price per share/ Earning per share) and a low
Market to Book Value ( Fundamental Value) Ratio. Value
Funds may select companies from diversified sectors and
are exposed to lower risk level as compared to growth
funds or specialty funds. Value stocks are generally from
cyclical industries ( such as cement, steel, sugar etc.) which
make them volatile in the short-term. Therefore, it is
advisable to invest in Value Funds with a long-term time
horizon as risk in the long term, to a large extent, is
reduced.

SCHEMES IN INDIA
g. Equity Income or Dividend Yield Funds- The objective

of Equity Income or Dividend Yield Equity Funds is to
generate high recurring income and steady capital
appreciation for investors by investing in those companies
which issue high dividends (such as Power or Utility
companies share prices). Equity Income or Dividend Yield
Equity Funds are generally exposed to the lowest risk level
as compared to other equity funds.
2. Debt/Income Funds
Funds that invest in medium to long-term debt instruments

issued by private companies, banks, financial institutions,
governments and other entities belonging to various
sectors(like infrastructure companies etc.) are known as
Debt/Income Funds. Debt funds are low risk profile funds that
seek to generate fixed current income (and not capital
appreciation) to investors. In order to ensure regular income to
investors, debt (or income) funds distribute large fraction of
their surplus to investors. Although debt securities are
generally less risky than equities, they are subject to credit risk
( risk of default) by the issuer at the time of interest or
principal payment. To minimize the risk of default, debt funds
usually invest in securities from issuers who are rated by credit
rating agencies and are considered to be of “Investment
Grade”. Debt funds that target high returns are more risky.
Based on different investment objectives, there can be
following types of debt funds:
a. Diversified Debt Funds- Debt Funds that invest in all

securities issued by entities belonging to all sectors of the
market are known as diversified debt funds. The best
SCHEMES IN INDIA
feature of diversified debt funds is that investments are

properly diversified into all sectors which results in risk
reduction. Any loss incurred, on account of default by a
debt issuer, is shared by all investors which further reduces
risk for an individual investor.
b. Focused Debt Funds- Unlike diversified debt funds,

focused debt funds are narrow focus that are confined to
investments in selective debt securities, issued by
companies of a specified sector or industry or origin. Some
examples of focused debt funds are sector, specialized and
offshore debt funds, funds that invest only in Tax Free
Infrastructure or Municipal Bonds. Because of their narrow
orientation, focused debt funds are more risky as compared
to diversified debt funds. Although not yet available in India,
these funds are conceivable and may be offered to
investors very soon.
c. High Yield Debt Funds- As we now understand that risk of

default is present in all debt funds and therefore, debt funds
generally try to minimize the risk of default by investing in
securities issued by only those borrowers who are
considered to be of “investment grade”. But, High Yield
Debt Funds adopt a different strategy and prefer securities
issued by those issuers who are considered to be of “below
investment grade”. The motive behind adopting this art of
risky strategy is to earn higher interest returns from these
issuers. These funds are more volatile and bear higher
default risk, although they may earn at times higher returns
for investors.

SCHEMES IN INDIA
d. Assured Return Funds- Although it is not necessary that

a fund will meet its objectives or provide assured to
investors, but there can be funds that come with a lock-in
period and offer assurance of annual returns to investors
during the lock-in period. Any shortfall in returns is suffered
by the sponsors or the Asset Management Companies
(AMC’s). these funds are generally debt funds and provide
investors with a low-risk investment opportunity. However,
the security of investments depends upon the net worth of
the guarantor(whose name is specified in the advance on
the offer document). To safeguard the interests of
investors, SEBI permits only those funds to offer assured
return schemes whose sponsors have adequate net-worth
to guarantee returns in the future. In the past, UTI had
offered assured return schemes(i.e. Monthly Income Plans
of UTI) that assured specified returns to investors in the
future. UTI was not able to fulfill its promises and faced
large shortfalls in the returns. Eventually, government had
to intervene and took over UTI’s payment obligations on
itself. Currently, no AMC in India offers assured returns
schemes to investors, though possible.
e. Fixed Term plan Series- Fixed Term plan Series usually

are closed-end schemes having short term maturity
period( of less than one year) that offer a series of plans
and issue units to investors at regular intervals. Unlike
closed-end funds, fixed term plans are not listed on the
exchanges. Fixed term plan series usually invest in
debt/income schemes and target short-term investors. The
objective of fixed term plan schemes is to gratify investors
by generating some expected returns in a short period.

SCHEMES IN INDIA
1. Gilt Funds-
Also known as Government Securities on India, Gilt Funds

invest in Government papers(named dated securities )
having medium to long term maturity period. Issued by the
Government of India, these investments have little credit
risk(risk of default) and provide safety of principal to the
investors. However, like all debt funds, gilt funds are
exposed to interest rate risk. Interest rates and prices of
debt securities are inversely related and any change in the
interest rates results in a change in the NAV of debt/gilt
funds in an opposite direction.
2. Money Market/Liquid Funds
Money market / liquid funds invest in short-term (maturity

within one year) interest bearing debt instruments. These
securities are highly liquid and provide safety of
investments, thus making money market/ liquid funds the
safest investment option when compared with other mutual
fund types. However, even money market/ liquid funds are
exposed to the interest rate risk. The typical investment
options for liquid funds include Treasury Bills (issued by
Governments), Commercial papers (issued by companies)
and Certificates of Deposit (issued by Banks).
3. Hybrid Funds
As the name suggests, hybrid funds are those funds whose

portfolio includes a blend of equities, debt and money

SCHEMES IN INDIA
market securities. Hybrid funds have an equal proportion of

debt and equity in their portfolio. There are following types
of hybrid funds in India:
a. Balanced Funds- The portfolio of balanced funds

include assets like debt securities, convertible securities
and equity and preference shares held in a relatively
equal proportion. The objectives of balanced funds are to
reward investors with a regular income, moderate capital
appreciation and at the same time minimizing the risk of
capital erosion. Balanced funds are appropriate for
conservative investors having a long term investment
horizon.
b. Growth-and-Income Funds- Funds that combine

features of growth funds and income funds are known as
Growth-and-Income Funds. These funds invest in
companies having potential for capital appreciation and
those known for issuing high dividends. The level of risks
involved in these funds is lower than growth funds and
higher than income funds.
c. Asset Allocation Funds- Mutual Funds may invest

financial assets like equity, debt, money market or non-
financial (physical)assets like real estate, commodities
etc.. Asset allocation funds adopt a variable asset
allocation strategy that allows fund managers to switch
over from one asset class to another at any time
depending upon their outlook for specific markets. In
other words, fund managers may switch over to equity if
they expect equity market to provide good returns and
switch over to debt if they expect debt market to provide
better returns. It should be noted that switching over

SCHEMES IN INDIA
from one asset class to another is a decision taken by

the fund manager on the basis of his own judgment and
understanding of specific markets and therefore, the
success of these funds depends upon the skill of a fund
manager in anticipating market trends.
4. Commodity Funds
Those funds that focus on investing in different

commodities (like metals, food grains, crude oil etc.) or
commodity companies or commodity futures contracts are
termed as Commodity Funds. A commodity fund that
invests in a single commodity or a group of commodities is
a specialized commodity fund and a commodity fund that
invests in all available commodities is a diversified
commodity fund and bears less risk than a specialized
commodity fund. “Precious Metals Fund” and Gold Funds
(that invest in gold, gold futures or shares of gold mines)
are common examples of commodity funds.
5. Real Estate Funds
Funds that invest directly in real estate or lend to real

estate developers or invest in shares/securitized assets of
housing finance companies, are known as Specialized Real
Estate Funds. The objective of these funds may be to
generate regular income for investors or capital
appreciation.
6. Exchange Traded Funds(ETF)

SCHEMES IN INDIA
Exchange Traded Funds provide investors with combined

benefits of a closed-end and an open-end mutual fund.
Exchange Traded Funds follow stock market indices and are
traded on stock exchanges like a single stock at index liked
prices. The biggest advantage offered by these funds is that
they offer diversification, flexibility of holding a single share
(tradable at index linked prices) at the same time. Recently
introduced in India, these funds are quite popular abroad.

SCHEMES IN INDIA
7. Fund of Funds
Mutual Funds that do not invest in financial or physical

assets, but do invest in other mutual fund schemes offered
by different AMC’s, are known as Fund of Funds. Fund of
Funds maintain a portfolio comprising of units of other
mutual fund schemes, just like conventional mutual funds
maintain a portfolio comprising of equity/debt/money
market instruments or non-financial assets. Fund of funds
provide investors with an added advantage of diversifying
into different mutual fund schemes with even an added
advantage of diversifying into different mutual fund
schemes with even a smell amount of investment, which
further helps in diversification of risks. However, the
expenses of Fund of Funds are quite high on account of
compounding expenses of investments into different mutual
fund schemes.

SCHEMES IN INDIA
Risk Hierarchy of Different Mutual Funds
Thus, different mutual fund schemes are exposed to different

levels of risk and investors should know the level of risks
associated with these schemes before investing. The graphical
representation hereunder provides a clearer picture of the
relationship between mutual funds and levels of risk associated
with these funds:
HISTORY OF MUTUAL FUNDS IN INDIA
The Mutual fund industry in India started in 1963 with the

formation of Unit Trust of India, at the initiative of the
Government of India and The Reserve Bank. 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 o

1963 by an Act of Parliament. 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

SCHEMES IN INDIA
from the RBI and the Industrial Development Bank of India (IDBI)
took over the regulatory and administrative control in place of
RBI. The first scheme launched by the UTI was Unit Scheme 1964.
At the end of 1988 UTI had Rs. 6700 crores of assets under
management.
Second Phase-1987-1993(Entry of Public Sector Funds):

1987 marked the entry of non-UTI, public sector mutual funds set
up by public sector banks and life Insurance Corporation of
India(LIC) and General Corporation of India(GIC). SBI Mutual Fund
was the first non-UTI Mutual Fund established in June 1987
followed by Canara bank Mutual Fund (Dec87), Punjab National
Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov89),
Bank of India( Jun90), Bank of Baroda Mutual Fund (Oct92). LIC
established its Mutual fund in June 1989 while GIC had set up its
mutual fund in December 1990. At the end of 1993, the mutual
fund industry had assets under management of Rs. 47,004 crores.
Third Phase-1993-2003(Entry of Private Sector Funds):

With the entry of Private sector funds in 1993, a new era started
in the Indian Mutual Funs industry, giving the Indian investors a
wider choice of fund families. Also, 1993 was the year which the
first Mutual Fund Regulations came into being, under which all
mutual funds, except UTI were to be registered and governed.
The erstwhile Kothari Pioneer (now merged with Franklin
Templeton) was the first private sector mutual fund registered in
July1993. In 1993 SEBI (Mutual fund) Regulations were substituted
by a more comprehensive and revised Mutual Fund Regulations in
1996. The industry now functions under the SEBI (Mutual Fund)
Regulations 1996. The number of Mutual Fund houses went on
increasing, with many foreign mutual funds setting up in India
and also the industry has witnesses several mergers and
acquisitions. As at the end of January 2003, there were 33 mutual

SCHEMES IN INDIA
funds with total asset of Rs. 1, 21,805 crores. The Unit Trust Of
India with Rs.44, 541 crores of assets under management was
way ahead of other mutual funds.
Fourth Phase-since February 2003: In February 2003,

following the repeal of the Unit Trust of India Act 1963, UTI was
bifurcated into two separate entities. One is the Specified
Undertaking of the Unit Trust of India with assets under
management of Rs. 29,835 crores as at the end of January 2003,
representing broadly, the assets of US 64 scheme, assured return
and certain other schemes. The Specified Undertaking of Unit
Trust of India, functioning under an administrator and under the
rules framed by Government of India and does not come under
the purview of the Mutual Fund Regulations.
The second is the UTI Mutual Fund Ltd, sponsored by SBI,

PNB,BOB and LIC. It is registered with SEBI and functions under
the Mutual Fund Regulations. With the bifurcation of the erstwhile
UTI which had in March 2000 more than Rs.76, 000 crores of
assets under management and with the setting up of a UTI Mutual
Fund, conforming to the SEBI Mutual Fund Regulations and with
recent mergers taking place among different private sector funds,
the mutual fund industry has entered its current phase of
consolidation and growth. The Graph indicates the growth of
assets over the years.

SCHEMES IN INDIA

SCHEMES IN INDIA
Mutual Funds Rules and Regulations
Mutual Fund in India is governed by the SEBI (Mutual Fund)

Regulations 1996 as amended from time to time.
Role of SEBI:
Since the year 1992, Securities and Exchange Board of India

(SEBI) Act was passed. The objectives of SEBI are- to protect the
interest of investors in securities and to promote the development
of and to regulate the securities market. As far as mutual funds
are concerned, SEBI formulates policies and regulates the mutual
funds to protect the interest of the investors. SEBI notified
regulations for the mutual funds in 1993. Thereafter, Mutual funds
sponsored by private sector entities were allowed to enter the
capital market. The regulations were fully revised in 1996 and
have been amended thereafter from time to time. SEBI has also
issued guidelines to the mutual funds from time to time to protect
the interests of investors. All mutual funds whether promoted by
public sector or private sector entities including those promoted
by foreign entities are governed by the same set of Regulations.
There is no distinction in regulatory requirements for these
mutual funds and all are subject to monitoring and inspections by
SEBI. The Risks associated with the schemes launched by the
mutual funds sponsored by these entities are similar type. It may
be mentioned here that Unit Trust of India (UTI) is not registered
with SEBI as a mutual fund (as on January 15, 2002).

SCHEMES IN INDIA
CHAPTER 2
RESEARCH DESIGN

SCHEMES IN INDIA
TITLE OF STUDY
“An overview of different mutual funds schemes in

India.”
DESIGN OF THE STUDY
STATEMENT OF THE PROBLEM
The expectations of the investors are influenced by their

“perception”. Usually humans relate perception to action. The
beliefs and actions of many investors are influenced by the
dissonance effect and endowment effect. The tendency to adjust
beliefs to justify past actions is a psychological phenomenon
termed by Festinger (1957) as Cognitive Dissonance. The
research find ample proof for the wide prevalence of such a
psychological state among Mutual Fund investors in India. For
instance, UTI had a glorious past and had always been perceived
as a safe, high yield investment vehicle with the added tax
benefit. Many UTI account holders had justified their beliefs by
staying invested in UTI schemes even after the 1999 bail out and
many have still not lost faith in UTI, even after the crisis faced in
July 2001.
Thus different funds behave differently in different point of time.

It is very difficult to choose the right scheme for the right
investor. Therefore an attempt is taken to do a comparative study
on the performance of different funds at different times.
BACKGROUND AND NEED FOR THE STUDY
It is widely believed that Mutual Fund is a retail product designed

to target small investors, salaried people and others who are

SCHEMES IN INDIA
intimated by the stock market but, nevertheless, like to reap the

benefits of stock market investing. At the retail level, investors
are unique and are a highly heterogeneous group. Hence,
designing a general product and expecting a good response will
be futile, though UTI could do this nearly for three decade(1964-
1987) due to its monopoly in the industry.
In the second phase of oligopolistic competition (1987-1992), the

public sector banks and financial institutions entered the field, but
with the then existing boom condition, it was a smooth sailing for
the industry. Further, the globalization and liberalization
measures announced by the government led to a paradigm shift
in the mind set of investors and the capital market environment
became more unfriendly to retail investors. They had no other
choice but to turn to MUTUAL FUNDs to reap the benefits of stock
market investing. Hence, the need to be innovative in designing
the product was not felt and investors had to choose from
among the limited schemes offered. During the third phase (1992
hence) the industry was thrown open to the private sector and
the stage set for competition.
As on 31/3/2003 there are 386 schemes. Now there are around

500 schemes with varied objectives and AMC’s compete against
one another by launching new products or repositioning old ones.
In the future, MUTUAL FUND industry has to face competition not
only from within the industry but also from other financial
products that not only may provide many of the same economic
functions as mutual funds but are not strictly MUTUAL FUND’s. all
this, on aggregate, heightens the consumer confusion in his
selection of the product. He is confused as to how to sift the grain
from the chaff?

SCHEMES IN INDIA
Unless the MUTUAL FUND schemes are tailored to his changing

needs, and unless the AMC’s understand the fund
selection/switching behavior of the investors, survival of funds will
be difficult in future. With this background an attempt is made in
this study to know the factors influencing the fund/ scheme
selection behavior of Retail Investors.

SCHEMES IN INDIA
SCOPE OF THE STUDY
Evaluation of MUTUAL FUND as an asset class is based on

investors’ perception about MUTUAL FUND and it has a wide
scope. Unless the MUTUAL FUND schemes are tailor-made to the
investor’s changing needs and unless the AMC’s understand the
fund selection/switching behavior of the investors, survival of
funds will be difficult in future. With this background an attempt is
made in this to study the performance of various funds at various
point of time and its volatility.
The report contains nature of the study, methods used in the

study, findings, conclusions and suggestions. This project report
helps JMMSFSPL for their advisory services on MUTUAL FUND’s. It
gives ready-made information to the different AMC’S to plan for
innovative and tailor-made products/schemes. Also this project
report can be used to carryout the research further and to
compare the findings of this report with other research studies
made.
OBJECTIVES OF THE STUDY
In order to examine the issues mentioned above, this study has

the following objectives before it:
• To compare the performance of various funds in relation to

each other.
• To evaluate various funds
• To evaluate fund’s performance at various points of time.
• To analyze the factors leading to volatility.
• To understand the investors perception towards various

funds.

SCHEMES IN INDIA
• To analyze the scope for growth of Mutual Fund.
• To understand the investors opportunity in Mutual Funds.
• To understand the Mutual Fund industry.
OPERATIONAL DEFINITIONS AND CONCEPTS
Net Asset Value (NAV): Net Asset Value is the market value of
the assets of the scheme minus its liabilities. The per unit NAV is
the net asset value of the scheme divided by the number of units
outstanding on the Valuation Date.
Calculation of NAV
The most important part of the calculation is the valuation of the

assets owned by the fund. Once it is calculated, the NAV is the
net value of assets divided by the number of units outstanding.
The detailed methodology for the calculation of the asset value is
given below.
Asset value is equal to
Sum of market value of share / debentures
+ Liquid assets /cash held, if any.
+ Dividends / interest accrued.
- Amount due on unpaid assets.
- Expenses accrued but not paid.
Details on the above items
For liquid shares/debentures, valuation is done on the basis of the

last or closing market price on the principal exchange where the
security is traded.

SCHEMES IN INDIA
For illiquid and unlisted and /or thinly traded shares/debentures,

the value has to be estimated. For shares, this could be the book
value per share or an estimated market price if suitable
benchmarks are available. For debentures and bonds, value is
estimated on the basis of yields of comparable liquid securities
after adjusting for illiquidity.
The value of fixed interest bearing securities moves in a direction

opposite to market interest rate changes. Valuation of debentures
and bonds is a big problem since most of them are unlisted and
thinly traded. This gives considerable leeway to the AMC’s on
valuation and some of the AMC’s are believed to take advantage
of this and adopt flexible valuation policies depending on the
situation.
Interest is payable on debentures/bonds on a periodic basis say

every six months. But, with every passing day, interest is said to
be accrued, at the daily interest rate, which is calculated by
dividing the periodic interest payment with the number of days in
each period. Thus, accrued interest on a particular day is equal to
the daily interest rate multiplied by the number of days since the
last interest payment date.
Usually, dividends are proposed at the time of the Annual General

Meeting and become due on the record date. There is a gap
between the date on which it becomes due and the actual
payment date. In the intermediate period, it is deemed to be
“accrued”. Expenses including management fees, custody
charges etc, are calculated on a daily basis.
Sale Price: It is the price that investor pay when investor in a

scheme, also called Offer Price. It may include a sales load(i.e.
entry load).

SCHEMES IN INDIA
Repurchase Price: It is the price at which a closed-ended

scheme repurchases its units and it may include a back-end load.
This is called Bid Price.
Redemption Price: It is the price at which open-ended schemes

repurchase their units and close-ended schemes redeem their
units on maturity. Such prices are NAV related are called
Redemption Price.
Sales Load: it is charge collected by a scheme when it sells the

units. Also called, “Front-end” load. Schemes that do not change
a load are called “No Load” schemes.
Repurchase or “Back-end” Load: It is a charge collected by a

scheme when it buys back the units from the unit holders.

SCHEMES IN INDIA
SOURCES OF DATA
In this study primary as well as secondary data are being used.

But mainly secondary data from company records, AMFI website
and other websites, financial magazines, reference books,
journals and articles are used in this study.
Data is two types:
• Primary
• Secondary
Primary Data:
Primary Data is that data which is directly obtained from the

survey for the purpose of the study. Under this survey information
is directly obtained in different ways like:
 Personal Interview with Genii Money Analysts.
 Telephone Interview with Market analysts.
 Mail Interview with AMFI Officials.
Secondary Data:
Secondary Data is that data which is obtained from the sources

that are already existing for the purpose of this project. Under this
the sources used to collect secondary data are:
 Genii Money Records
 Websites
 Financial Magazines
 Reference books

SCHEMES IN INDIA
 Journals
 Articles

SCHEMES IN INDIA
TOOLS AND TECHNIQUES OF ANALYSIS:-
How to calculate the growth of your Mutual Fund Investments?
Let’s assume that Mr. Gupta has purchased Mutual Fund units
worth Rs.10,000 at an NAV of Rs. 10 per unit on february1. The
entry load on the Mutual Fund was 2%. On September 15th he sold
all the units at an NAV of Rs. 20. The exit load was 0.5%. his
growth/returns are calculated as under:
1. Calculation of Applicable NAV and No. of units purchased
a) Amount of investment= Rs.10,000
b) Market NAV=Rs.10
c) Entry Load=2%=Rs.0.20
d) Applicable NAV(purchase price)=(b)+(c)=Rs.10.20
e) Actual Units Purchased=(a)/(d)=980.392 units
2. Calculation of NAV at the time of Sale
a) NAV at the time of Sale=Rs.20
b) Exit Load=0.5% or Rs.0.10
c) Applicable NAV=(a)-(b)=Rs.19.90
3. Returns/Growth on Mutual Funds
a) Applicable NAV at the time of Redemption=Rs.19.90
b) Applicable NAV at the time of Purchase=Rs.10.20
c) Growth / Returns on investment={(a)-(b)/

(b)*100}=95.30%

SCHEMES IN INDIA
GUIDELINES FOR INVESTORS:
 Do not speculate: Always evaluate risk-taking capacity.
 Do not chase returns: Because what goes up must come

down.
 Do not pull all eggs in one basket: Diversification reduces

the risk.
 Do not stop working on Mutual funds: Continuous evaluation

of funds is Must.
 Do not time the market: Every time is good for investments.
 Mutual Funds are subject to market risks and there is no

assurance that the fund objective will be achieved.
 NAV’s fluctuate depending on forces affecting the Capital

Market.
 Past performance may or may not be sustained in the

future.
 The investor should not pick a fund on performance no.

alone but on whole decision of investments
PERIOD OF THE STUDY
The period taken for this study is from January 2007 to

December 2009.

SCHEMES IN INDIA
LIMITATIONS
• This study has not been conducted over an extended period

of time having both market ups and downs. The market
state has a significant influence on the buying pattern and
preferences of investors. For example, the July 2001 UTI fall
has sent violent shock waves across the MUTUAL FUND
investor community and is bound to influence the scheme
preference/selection of the investors. The study has not
captured such situations.
• There are certain limitations in interview method.
• This study considers all schemes as same and compares the

NAV’s which results in variation of NAV values.

SCHEMES IN INDIA
CHAPTER -3
COMPANY PROFILE

SCHEMES IN INDIA
GENII MONEY
Genii Money is a leading full service securities firm providing the

entire gamut of financial services. It provides a breadth of
financial and advisory services including wealth management,
investment banking, corporate advisory, brokerage and
distribution of equities, commodities, mutual funds and insurance,
structured product- all of which are supported by powerful
research teams.
The firm’s philosophy is entirely client centric, with a clear focus

on providing long term value addition to clients, while maintaining
the highest standards of excellence, ethics and professionalism.
The entire firm activities are divided across distinct client groups:
Individuals, Private Clients, Corporate and Institutions.
The company provides customers an enriching experience

through a winning combination of high tech touch distribution, an
unprecedented choice of money management solutions in
addition to unbiased and transparent guidance and unbeatable
convenience.
A multi-product, multi-brand proposition- it is Genii Money’s

endeavor to provide customers with the widest choice of financial
products and services available in the country. The company is
constantly forging partnerships and innovating offerings to give
customers a complete and enriching experience.
A hybrid distribution model- Genii Money provides customers a

“high-touch” experience through own branch network coupled
with the internet and a call centre that ensure that they can
access us depending on their specific needs at any particular
time.

SCHEMES IN INDIA
A talented human resource pool- Genii Money treasures a great

talent pool, where all employees share common values of
Integrity, Passion and Commitment.
A Marketing focused organization-Genii Money has a very robust

marketing focus that ensures that the organization never loses
sight of targeting the right customer at the right time.
State-of-the art technological framework- the focus has been on

new age and superior technology that will lend success to t he
business model and ensure that the product are extremely robust
and successful.
MANAGEMENT TEAM
Genii Money recognizes that one of the key sources of sustainable

competitive advantage is the power of its human resource pool.
Therefore, the company fosters a mindset that embraces
meritocracy and competency to reward performance. The
company is managed by a core team of professionals who bring
with them a rich reservoir of industry experience and domain
expertise at each functional level.
PRODUCTS AND SERVICES
• Equity and Derivatives
• Mutual Funds
• Depository Services
• Insurance
• IPO’s

SCHEMES IN INDIA
• Structuring of trusts/ investment companies
• Offshore Mutual Funds
• Structured Products/ Deposits including capital-guaranteed

notes
• Trading in global markets
• Real Estate Investments
• Alternative Investments (including hedge funds and fund-of-

hedge funds).

SCHEMES IN INDIA
INSTITUTIONAL EQUITY
The Institutional sales and trading team provides cutting edge

market information and investment advice to clients, coupled with
excellent execution capabilities. A highly experienced and
reputed team of equity analysts support the sales team. There is
an extensive focus on research on companies, sectors and macro-
economy. The institutional equity team tracks large and mid-sized
companies to give clients an unparalleled breath of ideas. Genii
Money also provide Investment Advisory Services for institutional
clients in India and overseas for investment in the Indian equity
markets.
MANAGED INVESTMENT SERVICES
Portfolio Management Services (PMS)
Genii Money Portfolio Management Services is a discretionary

investment service created to meet the demand for more
targeted investment styles and opportunities. It offers a range of
specialized investment strategies designed to capture
opportunities across the market spectrum. The range of products
varies from the highly defensive, capital-protected to t he most
aggressive strategies in the equities and derivatives markets. The
company’s investment process ensures that your strategy and
portfolio are built on solid foundations. Together clients and the
company’s relationship manager select the strategy in line with
clients individual goals. Genii Money investment specialists then
construct and manage clients portfolio in accordance with the
chosen investment strategy.
Real Estate Opportunities Fund

SCHEMES IN INDIA
Genii Money Real Estate opportunities Fund is a private equity

fund for high net-worth individuals, corporate and institutions, to
invest in equity-linked instruments in the Indian Real Estate and
Infrastructure sectors.
As part of the structural reforms to further boost India’s economic

growth government has recognized the need for institutional
finance in the real estate sector. In early 2005, the government
has relaxed the FDI guidelines in real estate and also allowed the
setting up of real estate investment funds under SEBI guidelines.
These developments are expected to provide much needed
capital to provide for the increasing demand for quality real
estate in major urban centers across the country. To capture this
opportunity, Genii Money has brought together a team of
specialist and advisors to guide the fund’s investments who bring
together expertise in the areas of real estate consulting,
development, legal and financial structuring.
Genii Money recognizes that each customer has unique needs

which need special attention. That is why the company has an
empanelled team of Industry Experts and Certified Financial
Planers who are always there to answer just about any financial
query or concern.
For customers who are comfortable with the internet, the

company has a wide range of tools and calculators that would
help them asses’ solutions that are specific to their needs. This
coupled with a very easy-to-use website ensures that the
customer can quickly act on a decision he has made.
DISTRIBUTION

SCHEMES IN INDIA
The Genii Money service will be offered to the customer through

multiple channels that include physical distribution network,
internet and alternate channels.
While the entire backbone will be created on strong technology

platform riding on the web, the customer access channels will not
be restricted to pure internet channels, thus combining the best
of high tech with a “ high touch” experience, which is so
essential, at least at the beginning of the relationship.
 Branches
Genii Money will have an extensive reach across the country

through its own branch network across key Tier1, Tier 11, Tier
111 cities. In FY 09-10, there will be various Genii Money
branches spread across Bangalore, Belgaum, Ahmadabad,
Hyderabad and Chennai. These full-service branches are
located in strategic locations across the cities so as to allow
easy reach to a large number of people.
 Internet
Genii Money will be offering a full fledged Internet based portal

multiple trading and third party distribution products for its
customers. Insurance products will also be available online.
Services like foreign exchange, bill payments and money
changing services will also be available on the portal. The
internet portal will give the customer the flexibility to the
customer to choose their preferred mode of transacting, either
online or offline.
 Call Centre

SCHEMES IN INDIA
In addition to providing its customers with a service led call

centre, Genii Money will also allow its customers to transact
and trade over the phone.
WORK CULTURE
Genii Money believes in creating a vibrant atmosphere, a young

and enthusiastic team and the desire to achieve and excel.
Unbridled Energy and Invaluable Experience.
Genii Money offers the unbridled energy and excitement

that only a start-up organization can. It gives the
opportunity to gain experience in a wide variety of
functions, from product to technology to marketing,
something that very few organizations can.

SCHEMES IN INDIA
 Flat structure
Genii Money takes pride in building a great business

together. So, there are no designations, no hierarchies and
no red tape. Each employee at Genii Money works shoulder
to shoulder with the single objective if building a great
business.
 Ownership
At Genii Money employees are not just employees, they

own the company too. So, when they work towards making
Genii Money successful, they’re guaranteeing their own
success as well.

SCHEMES IN INDIA
CHAPTER 4
ANALYSIS
AND
INTERPRETATION

SCHEMES IN INDIA
AN OVERVIEW OF TOP 5 ASSET MANAGEMENT

COMPANIES IN INDIA AND THEIR DIFFERENT
SCHEMES
The study based on five of India’s biggest asset management

companies and there different schemes. They are as follows:

SCHEMES IN INDIA
ANALYSIS TABLE
Sl SCHEMES HIGH LOW

1 ICICI PRUDENTIAL
A. DISCOVERY FUND 35.0236 15.1163
B. EQUITY& DERIVATIVES FUND 12.6921 7.8127
C. INFRASTRUCTURE FUND 21.5268 7.27
2 LIC MF
A. EQUITY FUND 33.6506 13.1352
B. GOVT SECURITIES 13.6552 10.2669
C. CHILDREN FUND 21.2172 6.0732
3 RELIANCE M.F
A. BANKING FUND 66.972 30.4357
B. EQUITY ADVANTAGE FUND 12.8358 6.1098
DIVERSIFIED POWER SECTOR
C. 70.572 35.955
FUND
4 TATA M.F
FLOATING RATE FUND
A. 10.4427 9.7344
(DIVIDEND)
B. BALANCED FUND 51.5733 26.90833
FLOATING RATE FUND
C. 14.1121 10.925
(GROWTH)
5 UTI M.F
A. MASTER GROWTH PLAN 93 57.6784 24.854
B. RETIREMENT BENEFIT (P.F) 21.4973 17.6193
C. ENERGY FUND 20.99 6.7581

SCHEMES IN INDIA
TABLE SHOWING NAV’s OF ICICI PRUDENTIAL DISCOVERY

FUND- GROWTH OPTION
TABLE: 1
MONTH 2007 2008 2009
JANUARY 27.7495 34.6691 16.788
FEBRUARY 26.6021 29.9 16.1947
MARCH 24.0657 26.654 15.1163
APRIL 25.3095 27.6215 15.3170
MAY 27.2409 28.5675 16.500
JUNE 28.0052 25.7433 17.9931
JULY 29.0113 23.9173 18.1324
AUGUST 27.2181 25.6705 18.3332
SEPTEMBER 28.633 24.3871 19.4001
OCTOBER 29.944 17.9373 20.4450
NOVEMBER 31.3485 15.935 20.7411
DECEMBER 35.0236 16.295 21.0001

SCHEMES IN INDIA
GRAPH SHOWING NAV’S OF ICICI PRUDENTIAL DISCOVERY

FUND- GROWTH OPTION
GRAPH: 1
40
35
30
25
20 2007
15 2008
10 2009
5
0
NE
N
G
CH
AY
LY
B
C
P
T
FE
SE
OC
RI
DE
AU
JA
NO
JU
AR
JU
M
AP
M
GRAPH:2

SCHEMES IN INDIA
ANALYSIS:-
The NAV value shot up to 35.0236 in the month of Dec 2007,

being the highest in the last three years.
The NAV value went down to 15.1163 in the month of March

2009, being the lowest in the three years .
INTERPRETATION:-
The NAV graph is showing a relatively downward trend with a

moderate volatility. With a peak in the month of December 2007
and then slipping down at 15.1163.

SCHEMES IN INDIA
TABLE SHOWING NAV’S OF ICICI PRUDENTIAL EQUITY

&DERIVATIVES FUND-WEALTH OPTIMISER PLAN-RETAIL
GROWTH OPTION
Table: 2
MONTH 2007 2008 2009
JANUARY 9.6525 12.5653 8.0315
FEBRUARY 10.2473 11.6023 8.041
MARCH 9.9833 10.5733 7.8127
APRIL 10.3425 10.8735 7.8823
MAY 10.6719 11.244 7.9000
JUNE 10.7685 10.3957 8.1933
JULY 11.0709 9.8086 8.7001
AUGUST 10.9695 10.3125 8.9202
SEPTEMBER 11.4415 9.9195 8.9478
OCTOBER 12.1018 8.1468 8.9803
NOVEMBER 12.2647 7.8822 9.0801
DECEMBER 12.6921 8.0461 9.9006

SCHEMES IN INDIA
GRAPH SHOWING NAV’S OF ICICI PRUDENTIAL EQUITY

&DERIVATIVES FUND-WEALTH OPTIMISER PLAN-RETAIL
GROWTH OPTION
GRAPH: 3
GRAPH: 4

SCHEMES IN INDIA
ANALYSIS:-

being the highest in last three years.
The NAV value went down to 7.8127 in the month of March 2009,
being the lowest in the three years.
INTERPRETATION:-
The NAV graph is showing a relatively upward trend, reaching at a

peak and then showing a downward trend with a minimal
volatility.

SCHEMES IN INDIA
TABLE SHOWING NAV’S OF ICICI PRUDENTIAL

INFRASTRUCTURE FUND- DIVIDEND
TABLE: 3
MONTH 2007 2008 2009
JANUARY 16.15 21.0308 7.6655
FEBRUARY 16.2342 21.2409 7.5926
MARCH 14.1847 16.8889 7.7009
APRIL 14.247 14.444 7.8932
MAY 15.538 14.7655 7.9999
JUNE 15.538 13.0104 8.0068
JULY 15.5195 12.1317 8.1518
AUGUST 16.97 13.1645 8.4500
SEPTEMBER 17.7225 12.3195 8.7897
OCTOBER 19.6695 8.2089 8.8802
NOVEMBER 21.0866 7.27 9.0078
DECEMBER 21.5268 7.5936 9.17867

SCHEMES IN INDIA
GRAPH SHOWING NAV’S OF ICICI PRUDENTIAL

INFRASTRUCTURE FUND- DIVIDEND
GRAPH: 5
GRAPH: 6

SCHEMES IN INDIA
ANALYSIS:-

The NAV value went down to 7.27 in the month of Nov 2008,
INTERPRETATION:-
It is found that the NAV graph is showing a relatively upward

trend and then showing a downward trend with a moderate
volatility.

SCHEMES IN INDIA
TABLE SHOWING NAV’s OF LIC MUTUAL FUND EQUITY

FUND- GROWTH
TABLE: 4
MONTH 2007 2008 2009
JANUARY 21.9967 32.0973 14.4425
FEBRUARY 21.5742 27.8639 13.9660
MARCH 18.8979 23.0835 13.1352
APRIL 19.9347 23.7488 13.5587
MAY 20.925 24.7129 13.9980
JUNE 20.984 21.5714 14.5087
JULY 22.5475 20.0988 15.8756
AUGUST 21.8935 21.739 13.3542
SEPTEMBER 23.6681 20.8113 14.9840
OCTOBER 28.0289 15.906 14.9932
NOVEMBER 31.1955 13.949 15.0023
DECEMBER 33.6506 14.2903 15.9065

SCHEMES IN INDIA
GRAPH SHOWING NAV’S OF LIC MF EQUITY FUND-

GROWTH
GRAPH: 7
GRAPH: 8

SCHEMES IN INDIA
ANALYSIS:-


2009, being the lowest in the three years.
INTERPRETATION:-
It is assumed that the NAV graph is showing a relatively upward

trend and then showing a downward trend with a relatively
moderate volatility.

SCHEMES IN INDIA
TABLE SHOWING NAV’s OF LIC MUTUAL FUND

GOVERNMENT SECURITIES FUND
TABLE:5
MONTH 2007 2008 2009
JANUARY 10.3149 11.5572 13.4854
FEBRUARY 10.2669 11.6118 12.7684
MARCH 10.8897 11.6329 12.5019
APRIL 10.9457 11.6231 12.4434
MAY 11.00997 11.6796 12.2009
JUNE 11.0717 11.6383 12.1980
JULY 11.2131 11.5232 11.9542
AUGUST 10.6805 11.6603 11.8976
SEPTEMBER 11.2863 11.8584 11.3987
OCTOBER 11.3506 12.1096 11.5647
NOVEMBER 11.402 12.4424 11.9976
DECEMBER 11.458 13.6552 12.0059

SCHEMES IN INDIA
GRAPH SHOWING NAV’S OF LIC MF GOVERNMENT

SECURITIES FUND-P.F PLAN (D)
GRAPH: 9
GRAPH: 10

SCHEMES IN INDIA
ANALYSIS:-

The NAV value went down to 10.2669 in the month of Feb 2007,
INTERPRETATION:-
The NAV graph is showing a relatively stable trend with a gradual

upward movement with less volatility.

SCHEMES IN INDIA
TABLE SHOWING NAV’s OF LIC MUTUAL FUND CHILDREN

FUND
TABLE: 6
MONTH 2007 2008 2009
JANUARY 15.0469 21.2172 6.7855
FEBRUARY 15.1712 17.2759 6.4809
MARCH 15.0622 13.8481 6.07322
APRIL 15.1579 13.606 6.0987
MAY 15.3749 14.461 6.4783
JUNE 15.3424 12.4932 6.9908
JULY 15.9261 11.2604 7.0022
AUGUST 16.0151 11.8165 7.2087
SEPTEMBER 16.6178 10.9659 7.6653
OCTOBER 18.3989 8.0204 9.0061
NOVEMBER 19.8455 6.738 9.4865
DECEMBER 21.501 6.8026 9.7865

SCHEMES IN INDIA
GRAPH SHOWING NAV’S OF LIC MF CHILDREN FUND
GRAPH: 11
GRAPH: 12

SCHEMES IN INDIA
ANALYSIS:-
The NAV value shot up to 21.2172 in the month of Jan 2008, being
the highest in last three years.

INTERPRETATION:-
The NAV graph is showing a relatively upward trend and then

showing a stiff downward trend with a very minimal volatility.

SCHEMES IN INDIA
TABLE SHOWING NAV’s OF RELIANCE DIVERSIFIED POWER

SECTOR FUND
TABLE: 7
MONTH 2007 2008 2009
JANUARY 38.6746
FEBRUARY 70.572 37.8056
MARCH 63.3467 35.955
APRIL 62.8604 35.9991
MAY 63.939 36.0012
JUNE 56.5618 36.2343
JULY 52.9457 36.3564
AUGUST 57.0195 37.3879
SEPTEMBER 53.8822 37.9987
OCTOBER 38.3956 36.8768
NOVEMBER 36.3462 37.5685
DECEMBER 39.6758 37.7468

SCHEMES IN INDIA
GRAPH SHOWING NAV’S OF RELIANCE DIVERSIFIED POWER

SECTOR FUND INSTITUTIONAL PLAN GROWTH PLAN
GROWTH OPTION
GRAPH: 13
GRAPH: 14

SCHEMES IN INDIA
ANALYSIS:-
The NAV value shot up to 70.572 in the month of Feb 2008, being
INTERPRETATION:-
The NAV graph is showing a relatively downward trend with

moderate volatility.

SCHEMES IN INDIA
TABLE SHOWING NAV’s OF RELIANCE BANKING FUND
TABLE: 8
MONTH 2007 2008 2009
JANUARY 38.468 66.9726 39.2784
FEBRUARY 38.18263 62.6161 33.3958
MARCH 34.77285 53.5439 31.4473
APRIL 36.629 54.0655 30.4357
MAY 41.4305 55.2185 31.2342
JUNE 43.5445 47.678 31.9870
JULY 48.0757 44.8038 31.5463
AUGUST 47.614 50.2073 32.3567
SEPTEMBER 51.6405 49.9211 32.8769
OCTOBER 53.8755 41.8954 32.9090
NOVEMBER 60.431 38.6762 33.0012
DECEMBER 64.4073 39.1418 32.8769

SCHEMES IN INDIA
GRAPH SHOWING NAV’S OF RELIANCE BANKING FUND –

GROWTH PLAN-GROWTH OPTION
GRAPH: 15
GRAPH: 16

SCHEMES IN INDIA
ANALYSIS:-
The NAV value shot up to 66.9726 in the month of Jan 2008, being
The NAV value went down to 30.4357 in the month of April 2009,
INTERPRETATION:-

showing a downward trend with a minimum volatility.

SCHEMES IN INDIA
TABLE SHOWING NAV’s OF RELIANCE EQUITY ADVANTAGE

FUND-RETAIL PLAN GROWTH PLAN GROWTH OPTION.
TABLE: 9
MONTH 2007 2008 2009
JANUARY 12.5474 6.5636
FEBRUARY 11.3362 6.5363
MARCH 10.2382 6.1586
APRIL 10.44316 6.1098
MAY 10.8859 6.1187
JUNE 9.9599 6.1496
JULY 9.0359 6.7905
AUGUST 9.52945 9.6755 6.9987
SEPTEMBER 10.2056 9.2867 7.2786
OCTOBER 11.5999 7.2453 7.2987
NOVEMBER 12.308 6.4873 7.3685
DECEMBER 12.8358 6.5733 7.9957

SCHEMES IN INDIA
GRAPH SHOWING RELIANCE EQUITY ADVANTAGE FUND-

RETAIL PLAN GROWTH PLAN GROWTH OPTION
GRAPH: 17
GRAPH: 18

SCHEMES IN INDIA
ANALYSIS:-

The NAV value went down to 6.1098 in the month of April 2009,
INTERPRETATION:-

showing a downward trend with a relatively high volatility.

SCHEMES IN INDIA
TABLE SHOWING NAV’s OF TATA FLOATING RATE FUND –

LONG TERM GROWTH
TABLE: 10
MONTH 2007 2008 2009
JANUARY 11.4284 12.099 13.2147
FEBRUARY 11.4914 12.0676 13.2786
MARCH 10.925 12.132 13.3101
APRIL 11.6291 12.2311 13.4379
MAY 11.6873 12.3458 13.4647
JUNE 11.7073 12.4487 13.5678
JULY 11.717 12.5415 13.7865
AUGUST 11.7315 12.6319 13.9089
SEPTEMBER 11.7811 12.7321 14.0231
OCTOBER 11.8334 12.8517 14.0897
NOVEMBER 11.8888 12.9844 14.1030
DECEMBER 11.9499 13.0949 14.1121

SCHEMES IN INDIA
GRAPH SHOWING NAV’S OF TATA FLOATING RATE FUND –

LONG TERM GROWTH.
GRAPH: 19
GRAPH: 20

SCHEMES IN INDIA
ANALYSIS:-

INTERPRETATION:-
The NAV graph is showing a stable trend with a gradual upward

movement.

SCHEMES IN INDIA
TABLE SHOWING NAV’s OF TATA BALANCED FUND –

DIVIDEND FUND
TABLE: 11
MONTH 2007 2008 2009
JANUARY 37.2415 50.6654 28.6654
FEBRUARY 37.4742 45.7836 28.34
MARCH 35.1906 41.2147 27.5328
APRIL 37.0619 41.4323 27.4537
MAY 39.2131 42.5571 27.5789
JUNE 40.2253 39.0416 28.5642
JULY 41.2798 36.4604 27.0021
AUGUST 39.2315 38.1806 26.9083
SEPTEMBER 42.164 36.6935 27.1654
OCTOBER 46.8527 30.1897 27.0097
NOVEMBER 50.728 28.1815 27.1020
DECEMBER 51.5733 28.6655 27.1198

SCHEMES IN INDIA
GRAPH SHOWING NAV’S OF TATA BALANCED DIVIDEND

OPTION FUND
GRAPH: 21
GRAPH: 22

SCHEMES IN INDIA
ANALYSIS:-

The NAV value went down to 26.9083 in the month of August

INTERPRETATION:-
The NAV graph is showing a relative upward trend and then

showing a downward trend with a moderate volatility.

SCHEMES IN INDIA
TABLE SHOWING NAV’s OF TATA FLOATING RATE FUND –

LONG TERM OPTION BONUS/DIVIDEND
TABLE: 12
MONTH 2007 2008 2009
JANUARY 10.3254 10.1323 10.44277
FEBRUARY 10.32 10.1201 10.2505
MARCH 9.7344 10.1138 10.2597
APRIL 10.3325 10.1743 10.2599
MAY 10.3257 10.2697 10.2602
JUNE 10.2817 10.243 10.2876
JULY 10.2343 10.1955 10.3231
AUGUST 10.1829 10.269 10.3672
SEPTEMBER 10.1732 10.3505 10.3897
OCTOBER 10.1580 10.4471 10.3222
NOVEMBER 10.1441 10.2607 10.3547
DECEMBER 10.1412 10.348 10.3665

SCHEMES IN INDIA
GRAPH SHOWING NAV’S OF TATA FLOATING RATE FUND-

LONG TERM OTION BONUS-DIVIDEND
GRAPH: 23
GRAPH: 24

SCHEMES IN INDIA
ANALYSIS:-
The NAV value shot up to10.44277 in the month of Jan 2009,

INTERPRETATION:-
The NAV graph is showing relatively moderate returns between

April 07 to February with a sharp fall in March 07, having a high
volatility between March 08 to March 09.

SCHEMES IN INDIA
TABLE SHOWING NAV’s OF UTI MASTER GROWTH 93 –

INCOME OPTION
TABLE: 13
MONTH 2007 2008 2009
JANUARY 41.731 56.1108 26.495
FEBRUARY 41.4147 49.7719 26.0284
MARCH 37.5647 43.7897 24.854
APRIL 37.8515 44.124 24.9909
MAY 38.92 45.417 25.9999
JUNE 39.918 39.9842 25.0012
JULY 42.469 36.8804 27.0198
AUGUST 40.9881 39.609 25.0980
SEPTEMBER 43.965 37.4723 26.1903
OCTOBER 50.5095 29.4447 26.9870
NOVEMBER 55.1856 26.69 25.9986
DECEMBER 57.6784 26.5471 24.9567

SCHEMES IN INDIA
GROWTH SHOWING NAV’S OF UTI MASTER GROWTH 93-

INCOME OPTION
GRAPH: 25
GRAPH: 26

SCHEMES IN INDIA
ANALYSIS:-

being the highest in the three years
being the lowest in three years.
INTERPRETATION:-
The NAV graph is showing low volatility during January 2007 to

July, forming a plateau between September 2007 and March 2008
and then showing a downward trend.

SCHEMES IN INDIA
TABLE SHOWING NAV’s OF UTI RETIERMENT BENEFIT

PENSION FUND
TABLE: 14
MONTH 2007 2008 2009
JANUARY 19.7076 21.4441 18.3393
FEBRUARY 19.6842 20.6461 18.2618
MARCH 19.355 19.7737 18.06515
APRIL 17.751 19.8906 18.1783
MAY 18.2007 20.1267 18.1894
JUNE 18.5408 19.356 18.2452
JULY 19.1673 18.8551 18.4020
AUGUST 18.954 19.4118 18.4442
SEPTEMBER 19.4623 19.307 18.5015
OCTOBER 20.3899 17.9903 18.9876
NOVEMBER 21.0392 17.6193 18.5941
DECEMBER 21.4973 18.0542 18.8880

SCHEMES IN INDIA
GRAPH SHOWING NAV’S OF UTI-RETIREMENT BENEFIT

PENSION FUND
GRAPH: 27
GRAPH: 28

SCHEMES IN INDIA
ANAYLSIS:-
The NAV value shot up to 21.4973 in the month of Dec2007,

being the highest in the last three years.
The NAV value went down to 17.6193 in the month of Nov 2008,
being the lowest in the last three years.
INTERPRETATAION:-
The NAV graph is moderate volatility with a downwards trend.

SCHEMES IN INDIA
TABLE SHOWING NAV’s OF UTI ENERGY FUND – INCOME

OPTION
TABLE: 15
MONTH 2007 2008 2009
JANUARY 18.707 16.0456 7.112
FEBRUARY 18.4421 13.7657 6.9863
MARCH 17.0376 12.11055 6.7581
APRIL 18.162 12.356 6.8878
MAY 20.132 12.4635 6.9089
JUNE 19.8852 10.7542 7.8691
JULY 20.299 10.0026 7.9996
AUGUST 19.519 10.7845 8.0980
SEPTEMBER 20.99 10.169 8.1342
OCTOBER 15.195 7.8073 7.7685
NOVEMBER 15.89 6.9822 7.5876
DECEMBER 16.35733 7.0414 7.9840

SCHEMES IN INDIA
GRAPH SHOWING NAV’S OF UTI ENERGY FUND – INCOME

OPTION
GRAPH: 29
GRAPH: 30

SCHEMES IN INDIA
ANALYSIS:-
The NAV value shot up to 20.99 in the month of September 2007,

INTERPRETATION:-
The NAV graph is showing a high volatility, touching peak in Sep

2007 and then showing a downward trend with a low of 6.7581 in
March 09.

SCHEMES IN INDIA
CHAPTER 5
FINDINGS
SUGGESTIONS AND
CONCLUSION

SCHEMES IN INDIA
SUMMARY OF FINDINGS
1. ICICI PRUDENTIAL DISCOVERY FUND is showing a

relatively downward trend with a moderate volatility.
With a peak in the month of December 2007 and then
slips down at 15.1163 in March 2009.
2. ICICI PRUDENTIAL EQUITY AND DERIVATIVES FUND is

showing a relatively upward trend, reaching at a peak
and then showing a downward trend with a minimal
volatility.
3. ICICI PRUDENTIAL INFRASTRUCTURE FUND is showing a

relatively upward trend showing a downward trend with
a moderate volatility.
4. LIC MUTUAL FUND EQUITY FUND- GROWTH is showing a

relatively upward trend and then showing a downward
trend with a relatively moderate volatility.
5. LIC MUTUAL FUND GOVERNMENT SECURITIES FUND is

showing a relatively stable trend with a gradual upward
movement with less volatility.
6. LIC MUTUAL FUND CHILDREN FUND is showing a

relatively upward trend and then showing a stiff
downward trend with a very minimal volatility.

SCHEMES IN INDIA
7. RELIANCE DIVERSIFIED POWER SECTOR FUND is showing

a relatively downward trend with a moderate volatility.
8. RELIANCE BANKING FUND is showing a relatively upward

trend and then showing a downward trend with a
minimal volatility.
9. RELIANCE DIVERSIFIED POWER SECTOR FUND is showing

a relatively upward trend and then showing a downward
trend with a relatively high volatility.
10. TATA FLOATING RATE FUND – LONG TREM GROWTH is

showing a stable trend with a gradual upward
movement.
11. TATA BALANCED FUND – DIVIDEND FUND is showing a

relatively upward trend and then showing a downward
trend with a moderate volatility.
12. TATA FLOATING RATE FUND – LONG TERM OPTION

BONUS/DIVIDEND is showing relatively moderate return
between April 07 to Feb 07 with a sharp fall in March 07,
having a high volatility between March 08 to March 09.

SCHEMES IN INDIA
13. UTI MASTER GROWTH 93 – INCOME OPTION is

showing low volatility during January 07 to July 07,
forming a plateau between September 07 and March 08
and then showing a downward trend.
14.UTI RETIERMENT BENEFIT PENSION FUND is showing a

moderate volatility with a downward trend.
15. UTI ENERGY FUND – INCOME OPTION is showing a high

volatility, touching peak in Sep 07 and then showing a
downward trend with a low of 6.7581 in March 09.

SCHEMES IN INDIA
So we can see that most of the schemes are showing a downward

trend, especially those schemes which deals with the equity
market, this is because of the global meltdown. If we observe the
NAV’s of most of the schemes, it is evident that the schemes have
gone down to half of its value of they had in the year 2007 and
2008.
But few schemes are showing moderately stable returns and few
are showing an upward trend.
This is because those schemes deal with government bonds and

securities, and these government securities always show reverse
trend to the market. This is because demand foe government
security goes high when markets are performing very bad and
vice versa.
By studying 15 schemes it can be said that return on the

investments completely depends on the market. So an investor
should try an diversify his risk and hence his return.

SCHEMES IN INDIA
RELATIONSHIP BETWEEN RISK & RETURN
Risk is directly proportional to return.
RISK α RETURN.

SCHEMES IN INDIA
SUGGESTIONS
1. This is the best period for new investors to invest in

mutual funds as schemes are available at a very good
price.
2. The investors should not panic due to past meltdown and

current slow movement, as soon their will be a bull run.
3. The investors who have suffered loss because of the

market conditions, they should invest in mutual schemes
now, to earn good capital appreciation in near future.
4. The fund manager should advice the clients to go for

certain sector specified funds like growth, power etc
based on the performance of the fund.
5. The mutual funds are a good investment option for early

investors and they can be guided to go for it.
6. Genii Money financial advisor should look into

government bonds based fund which gives stable returns
irrespective of, market performance.
7. The Genii Money can concentrate on the growth fund by

Reliance and TATA for their long term objective clients.
8. The Genii Money fund manager should advice pensioners

to go for UTI pension plan which have shown stable
returns with very less risk.
9. The government should also encourage long term

investment by giving tax exemptions to investors.
10. Families with lower income must be given exemptions,

to encourage in mutual funds.

SCHEMES IN INDIA
11. Genii Money manager should look into Balanced fund

which should keep inflation in check.
12. The investment of the funds should be adjusted to reach

the bench marks.
13. Mutual fund changes the strategic investor style.
14. As the Mutual Fund is most risk-free investment Genii

Money fund manager should encourage more investors
to invest in Mutual Funds.
15. With less risk the mutual funds give regular returns, so
investors who wish to get regular return with less risk
must go for mutual fund type of investment.
16. Mutual Fund gives the investors the twin benefit of Rate
of financing equity Market, so the investor can consider
Mutual fund investment as very beneficial.
17. The medium investors should look for quality advice and
research report, so that they can take inform decision on
investing their money.
18. As 30% ULIP peddle their product more than Mutual

Fund scheme, so an investor can be secure in investing
in Mutual Fund schemes.
19. The investors must see more evidence of a successful

turn around before buying shares.

SCHEMES IN INDIA
CONCLUSION
A common investor is not familiar with the investment world, and

with limited resources of funds, little bit of analytical abilities will
find it extremely tough to diversify on his own. First of all this
requirement for exposal to analytical abilities and every investor
has his own limitations. Hence a portfolio manager will by all
means recommend a diversified set of investments which is
directly obtained through mutual funds.
A mutual fund is a secondary investment company which collects

primary funds of limited amount through individual investors and
in turn invests them into well diversified portfolio through its
various schemes so as to suit the requirement of every investor.
Further due to multiplicity of schemes an investor can select a
mutual fund scheme so as to suit his or her requirement. These
mutual funds offer several advantages to an investor over an own
diversification such as:
1. Reduce amount of investment.
2. No need to do numerical calculations on his own.
3. Transparency in operation.
4. Bound by laws.
5. Availability of a particular scheme so to suit his or her

investment objective.
However due to large amount of schemes available in the market

now mutual funds are also not assumed to be free from risk and
guaranteed returns. In other words an investor is advised to
select at least few schemes among the several. A mutual fund
adviser can recommend the investors to invest, based on their
requirement. For example, an investor looking for recurring

SCHEMES IN INDIA
returns can be advised to go for a dividend based scheme where

as investor looking for long term capital appreciation can be
advised to go for growth plan. However mutual funds in general
are under performing in the present scenario because of global
meltdown but they are likely to rise in the near future.

SCHEMES IN INDIA
BIBLIOGRAPHY
BOOKS
Securities Analysis and Portfolio V A Avadhani

Management
Himalaya Publication House,
2002
Investments TATA Mc GrawHill, 2006

(Special Indian Edition)
Investment Analysis And Portfolio TATA Mc GrawHill, 2005

Management
(2nd Edition)
Financial Planning Donald Fischer
Income Tax Law T N Manoharan

Snow White Publishing
House, 2008
WEBSITES
www.nseindia.com
www.sebi.com
www.moneycontrol.com
www.icicidirect.com
www.livemint.com
www.ampiindia.com
ANNEXURE
NAV History-Historical NAV for a period

From 1-Jan-2007 to 31-Mar-2007
ICICI Prudential Mutual Fund
ICICI Prudential Discovery Fund

SCHEMES IN INDIA
ICICI Prudential Discovery Fund-GROWTH OPTION

Repurchase
Net Asset Value Sale Price Date
Price
27.31 27.31 27.92 2-Jan-2007
27.54 27.54 28.16 3-Jan-2007
27.60 27.60 28.22 4-Jan-2007
27.73 27.73 28.36 5-Jan-2007
27.72 27.72 28.35 8-Jan-2007
27.49 27.49 28.11 9-Jan-2007
27.34 27.34 27.95 10-Jan-2007
27.61 27.61 28.23 11-Jan-2007
27.87 27.87 28.50 12-Jan-2007
28.02 28.02 28.65 15-Jan-2007
28.08 28.08 28.71 16-Jan-2007
28.14 28.14 28.77 17-Jan-2007
28.19 28.19 28.83 18-Jan-2007
28.12 28.12 28.75 19-Jan-2007
28.19 28.19 28.82 22-Jan-2007
27.71 27.71 28.34 23-Jan-2007
27.69 27.69 28.32 24-Jan-2007
27.69 27.69 28.31 25-Jan-2007
27.62 27.62 28.24 29-Jan-2007
27.33 27.33 27.94 31-Jan-2007
27.53 27.53 28.15 1-Feb-2007
27.64 27.64 28.26 2-Feb-2007
27.53 27.53 28.15 5-Feb-2007
27.55 27.55 28.17 6-Feb-2007
27.51 27.51 28.13 7-Feb-2007
27.45 27.45 28.07 8-Feb-2007
27.13 27.13 27.74 9-Feb-2007
26.41 26.41 27.01 12-Feb-2007

SCHEMES IN INDIA
26.38 26.38 26.98 13-Feb-2007

26.18 26.18 26.77 14-Feb-2007
26.82 26.82 27.43 15-Feb-2007
26.73 26.73 27.33 19-Feb-2007
26.39 26.39 26.98 20-Feb-2007
26.35 26.35 26.95 21-Feb-2007
26.06 26.06 26.65 22-Feb-2007
25.52 25.52 26.10 23-Feb-2007
25.64 25.64 26.22 26-Feb-2007
25.58 25.58 26.15 27-Feb-2007
25.04 25.04 25.60 28-Feb-2007
25.03 25.03 25.60 1-Mar-2007
24.70 24.70 25.26 2-Mar-2007
23.68 23.68 24.21 5-Mar-2007
23.82 23.82 24.36 6-Mar-2007
23.52 23.52 24.05 7-Mar-2007
24.03 24.03 24.57 8-Mar-2007
23.84 23.84 24.38 9-Mar-2007
23.94 23.94 24.48 12-Mar-2007
24.20 24.20 24.75 13-Mar-2007
23.69 23.69 24.23 14-Mar-2007
23.80 23.80 24.34 15-Mar-2007
23.65 23.65 24.18 16-Mar-2007
23.96 23.96 24.50 19-Mar-2007
24.07 24.07 24.61 20-Mar-2007
24.19 24.19 24.73 21-Mar-2007
24.49 24.49 25.04 22-Mar-2007
24.35 24.35 24.90 23-Mar-2007
24.14 24.14 24.68 26-Mar-2007
23.87 23.87 24.40 28-Mar-2007
24.10 24.10 24.64 29-Mar-2007

SCHEMES IN INDIA
24.31 24.31 24.86 30-Mar-2007

LIC Mutual Fund
LIC MF Equity Fund
LIC MF Equity Fund-Growth
Repurchase
Price
21.5973 21.5973 21.5973 2-Jan-2007
21.7230 21.7230 21.7230 3-Jan-2007
21.6345 21.6345 21.6345 4-Jan-2007
21.6494 21.6494 21.6494 5-Jan-2007
21.4302 21.4302 21.4302 8-Jan-2007
21.2074 21.2074 21.2074 9-Jan-2007
20.9558 20.9558 20.9558 10-Jan-2007
21.4239 21.4239 21.4239 11-Jan-2007
21.9493 21.9493 21.9493 12-Jan-2007
22.2881 22.2881 22.2881 15-Jan-2007
22.3547 22.3547 22.3547 16-Jan-2007
22.7018 22.7018 22.7018 17-Jan-2007
22.6757 22.6757 22.6757 18-Jan-2007
22.3719 22.3719 22.3719 19-Jan-2007
22.3424 22.3424 22.3424 22-Jan-2007
22.0968 22.0968 22.0968 23-Jan-2007
22.2319 22.2319 22.2319 24-Jan-2007
22.5486 22.5486 22.5486 25-Jan-2007
22.5636 22.5636 22.5636 29-Jan-2007
22.1879 22.1879 22.1879 31-Jan-2007
22.5309 22.5309 22.5309 2-Feb-2007
22.7567 22.7567 22.7567 5-Feb-2007

SCHEMES IN INDIA
22.7727 22.7727 22.7727 6-Feb-2007

23.0165 23.0165 23.0165 7-Feb-2007
22.7941 22.7941 22.7941 8-Feb-2007
22.3576 22.3576 22.3576 9-Feb-2007
21.2692 21.2692 21.2692 12-Feb-2007
21.1690 21.1690 21.1690 13-Feb-2007
21.1690 21.1690 21.1690 14-Feb-2007
21.7448 21.7448 21.7448 15-Feb-2007
21.7349 21.7349 21.7349 19-Feb-2007
21.4705 21.4705 21.4705 20-Feb-2007
21.4196 21.4196 21.4196 21-Feb-2007
21.2816 21.2816 21.2816 22-Feb-2007
20.5944 20.5944 20.5944 23-Feb-2007
20.4645 20.4645 20.4645 26-Feb-2007
20.2856 20.2856 20.2856 27-Feb-2007
19.5048 19.5048 19.5048 28-Feb-2007
19.6142 19.6142 19.6142 1-Mar-2007
19.3121 19.3121 19.3121 2-Mar-2007
18.3726 18.3726 18.3726 5-Mar-2007
18.4467 18.4467 18.4467 6-Mar-2007
18.1618 18.1618 18.1618 7-Mar-2007
18.8803 18.8803 18.8803 8-Mar-2007
18.7794 18.7794 18.7794 9-Mar-2007
18.9347 18.9347 18.9347 12-Mar-2007
19.1946 19.1946 19.1946 13-Mar-2007
18.7124 18.7124 18.7124 14-Mar-2007
18.8028 18.8028 18.8028 15-Mar-2007
18.5171 18.5171 18.5171 16-Mar-2007
18.7468 18.7468 18.7468 20-Mar-2007
18.9414 18.9414 18.9414 21-Mar-2007
19.3071 19.3071 19.3071 22-Mar-2007

SCHEMES IN INDIA
19.1902 19.1902 19.1902 23-Mar-2007

19.0800 19.0800 19.0800 26-Mar-2007
18.8489 18.8489 18.8489 28-Mar-2007
18.9464 18.9464 18.9464 29-Mar-2007
19.1692 19.1692 19.1692 30-Mar-2007

Reliance Mutual Fund
Reliance Banking Fund
Reliance Banking Fund-Growth Plan-Growth Option
Repurchase
Price
37.76 37.76 38.61 2-Jan-2007
38.13 38.13 38.99 3-Jan-2007
37.83 37.83 38.68 4-Jan-2007
37.84 37.84 38.69 5-Jan-2007
37.54 37.54 38.38 8-Jan-2007
37.09 37.09 37.92 9-Jan-2007
36.58 36.58 37.4 10-Jan-2007
37.11 37.11 37.94 11-Jan-2007
38.83 38.83 39.7 12-Jan-2007
38.82 38.82 39.69 15-Jan-2007
38.81 38.81 39.68 16-Jan-2007
39.33 39.33 40.21 17-Jan-2007
39.56 39.56 40.45 18-Jan-2007
39.32 39.32 40.2 19-Jan-2007
39.56 39.56 40.45 22-Jan-2007
38.89 38.89 39.77 23-Jan-2007
39.06 39.06 39.94 24-Jan-2007
39.44 39.44 40.33 25-Jan-2007

SCHEMES IN INDIA
39.13 39.13 40.01 29-Jan-2007

38.73 38.73 39.6 31-Jan-2007
39.35 39.35 40.24 1-Feb-2007
39.24 39.24 40.12 2-Feb-2007
39.84 39.84 40.74 5-Feb-2007
39.81 39.81 40.71 6-Feb-2007
39.87 39.87 40.77 7-Feb-2007
39.85 39.85 40.75 8-Feb-2007
39.42 39.42 40.31 9-Feb-2007
38.26 38.26 39.12 12-Feb-2007
38.12 38.12 38.98 13-Feb-2007
37.15 37.15 37.99 14-Feb-2007
37.77 37.77 38.62 15-Feb-2007
38.17 38.17 39.03 19-Feb-2007
37.85 37.85 38.7 20-Feb-2007
37.84 37.84 38.69 21-Feb-2007
37.2 37.2 38.04 22-Feb-2007
36.54 36.54 37.36 23-Feb-2007
36.97 36.97 37.8 26-Feb-2007
36.74 36.74 37.57 27-Feb-2007
35.48 35.48 36.28 28-Feb-2007
35.86 35.86 36.67 1-Mar-2007
35.18 35.18 35.97 2-Mar-2007
33.7 33.7 34.46 5-Mar-2007
34.03 34.03 34.8 6-Mar-2007
33.28 33.28 34.03 7-Mar-2007
34.34 34.34 35.11 8-Mar-2007
34.1 34.1 34.87 9-Mar-2007
34.63 34.63 35.41 12-Mar-2007
34.77 34.77 35.55 13-Mar-2007
33.83 33.83 34.59 14-Mar-2007

SCHEMES IN INDIA
33.47 33.47 34.22 15-Mar-2007

33.27 33.27 34.02 16-Mar-2007
33.57 33.57 34.33 19-Mar-2007
34.49 34.49 35.27 20-Mar-2007
35.28 35.28 36.07 21-Mar-2007
36.52 36.52 37.34 22-Mar-2007
36.46 36.46 37.28 23-Mar-2007
36.25 36.25 37.07 26-Mar-2007
35.67 35.67 36.47 28-Mar-2007
35.66 35.66 36.46 29-Mar-2007
35.87 35.87 36.68 30-Mar-2007

Tata Mutual Fund
Tata Floating Rate Fund - Long Term Option Bonus/ Dividend
Tata Floating Rate Fund - Long Term Option Bonus/ Dividend
Repurchase
Price
10.3021 10.3021 10.3021 2-Jan-2007
10.3037 10.3037 10.3037 3-Jan-2007
10.3052 10.3052 10.3052 4-Jan-2007
10.3071 10.3071 10.3071 5-Jan-2007
10.3127 10.3127 10.3127 8-Jan-2007
10.3145 10.3145 10.3145 9-Jan-2007
10.3162 10.3162 10.3162 10-Jan-2007
10.3182 10.3182 10.3182 11-Jan-2007
10.3200 10.3200 10.3200 12-Jan-2007
10.3254 10.3254 10.3254 15-Jan-2007
10.3272 10.3272 10.3272 16-Jan-2007
10.3290 10.3290 10.3290 17-Jan-2007
10.3308 10.3308 10.3308 18-Jan-2007
10.3326 10.3326 10.3326 19-Jan-2007
10.3380 10.3380 10.3380 22-Jan-2007
10.3398 10.3398 10.3398 23-Jan-2007
10.3416 10.3416 10.3416 24-Jan-2007
10.3436 10.3436 10.3436 25-Jan-2007
10.3518 10.3518 10.3518 29-Jan-2007
10.3554 10.3554 10.3554 31-Jan-2007

SCHEMES IN INDIA
10.2958 10.2958 10.2958 2-Feb-2007

10.3013 10.3013 10.3013 5-Feb-2007
10.3032 10.3032 10.3032 6-Feb-2007
10.3050 10.3050 10.3050 7-Feb-2007
10.3065 10.3065 10.3065 8-Feb-2007
10.3081 10.3081 10.3081 9-Feb-2007
10.3135 10.3135 10.3135 12-Feb-2007
10.3158 10.3158 10.3158 13-Feb-2007
10.3176 10.3176 10.3176 14-Feb-2007
10.3197 10.3197 10.3197 15-Feb-2007
10.3273 10.3273 10.3273 19-Feb-2007
10.3292 10.3292 10.3292 20-Feb-2007
10.3310 10.3310 10.3310 21-Feb-2007
10.3326 10.3326 10.3326 22-Feb-2007
10.3340 10.3340 10.3340 23-Feb-2007
10.3384 10.3384 10.3384 26-Feb-2007
10.3399 10.3399 10.3399 27-Feb-2007
10.3413 10.3413 10.3413 28-Feb-2007
10.2893 10.2893 10.2893 1-Mar-2007
10.2908 10.2908 10.2908 2-Mar-2007
10.2948 10.2948 10.2948 5-Mar-2007
10.2960 10.2960 10.2960 6-Mar-2007
10.2972 10.2972 10.2972 7-Mar-2007
10.2985 10.2985 10.2985 8-Mar-2007
10.2997 10.2997 10.2997 9-Mar-2007
10.3033 10.3033 10.3033 12-Mar-2007
10.3045 10.3045 10.3045 13-Mar-2007
10.3056 10.3056 10.3056 14-Mar-2007
10.3069 10.3069 10.3069 15-Mar-2007
10.3090 10.3090 10.3090 16-Mar-2007
0.0000 0.0000 0.0000 19-Mar-2007
10.3185 10.3185 10.3185 20-Mar-2007
10.3225 10.3225 10.3225 21-Mar-2007
10.3245 10.3245 10.3245 22-Mar-2007
10.3265 10.3265 10.3265 23-Mar-2007
10.3327 10.3327 10.3327 26-Mar-2007
10.3376 10.3376 10.3376 28-Mar-2007
10.3393 10.3393 10.3393 29-Mar-2007
10.2904 10.2904 10.2904 30-Mar-2007

UTI Mutual Fund

SCHEMES IN INDIA
UTI - Master Growth 93

UTI - Master Growth 93-Income Option
Net Asset Value Repurchase Price Sale Price Date
41.49 41.49 42.42 2-Jan-2007
41.6 41.6 42.54 3-Jan-2007
41.36 41.36 42.29 4-Jan-2007
41.36 41.36 42.29 5-Jan-2007
40.92 40.92 41.84 8-Jan-2007
40.62 40.62 41.53 9-Jan-2007
40.09 40.09 40.99 10-Jan-2007
40.78 40.78 41.7 11-Jan-2007
41.72 41.72 42.66 12-Jan-2007
42.29 42.29 43.24 15-Jan-2007
42.41 42.41 43.36 16-Jan-2007
42.42 42.42 43.37 17-Jan-2007
42.5 42.5 43.46 18-Jan-2007
42.31 42.31 43.26 19-Jan-2007
42.5 42.5 43.46 22-Jan-2007
42.01 42.01 42.96 23-Jan-2007
42.19 42.19 43.14 24-Jan-2007
42.58 42.58 43.54 25-Jan-2007
42.01 42.01 42.96 29-Jan-2007
41.46 41.46 42.39 31-Jan-2007
42.02 42.02 42.97 1-Feb-2007
42.72 42.72 43.68 2-Feb-2007
42.98 42.98 43.95 5-Feb-2007
42.91 42.91 43.88 6-Feb-2007
43.15 43.15 44.12 7-Feb-2007
43.18 43.18 44.15 8-Feb-2007
42.68 42.68 43.64 9-Feb-2007
41.23 41.23 42.16 12-Feb-2007

SCHEMES IN INDIA
40.78 40.78 41.7 13-Feb-2007

40.62 40.62 41.53 14-Feb-2007
41.82 41.82 42.76 15-Feb-2007
41.94 41.94 42.88 19-Feb-2007
41.38 41.38 42.31 20-Feb-2007
41.4 41.4 42.33 21-Feb-2007
40.87 40.87 41.79 22-Feb-2007
39.77 39.77 40.66 23-Feb-2007
39.92 39.92 40.82 26-Feb-2007
39.56 39.56 40.45 27-Feb-2007
37.95 37.95 38.8 28-Feb-2007
38.6 38.6 39.47 1-Mar-2007
37.63 37.63 38.48 2-Mar-2007
36.04 36.04 36.85 5-Mar-2007
36.8 36.8 37.63 6-Mar-2007
36.42 36.42 37.24 7-Mar-2007
37.51 37.51 38.35 8-Mar-2007
37.24 37.24 38.08 9-Mar-2007
37.41 37.41 38.25 12-Mar-2007
38 38 38.86 13-Mar-2007
36.87 36.87 37.7 14-Mar-2007
36.96 36.96 37.79 15-Mar-2007
36.51 36.51 37.33 16-Mar-2007
37.08 37.08 37.91 19-Mar-2007
37.31 37.31 38.15 20-Mar-2007
37.93 37.93 38.78 21-Mar-2007
38.9 38.9 39.78 22-Mar-2007
38.78 38.78 39.65 23-Mar-2007
38.5 38.5 39.37 26-Mar-2007
37.84 37.84 38.69 28-Mar-2007
38.1 38.1 38.96 29-Mar-2007

SCHEMES IN INDIA
38.43 38.43 39.29 30-Mar-2007

Mutual Fund

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Mutual Fund

Uploaded by

Copyright:

Available Formats

OVERVIEW OF DIFFERENT MUTUAL FUNDS

JYOTI NIVAS COLLEGE (AUTONOMOUS) Page 1

A branch of economics concerned with resource allocation as well

1. The science of raising and expending the public revenue.

2. The commercial activity of providing funds and capital.

3. The management of money and credit and banking and

4. The branch of economics that studies the management of

Why is finance important?

• Ensure that there are adequate funds available to acquire

• Ensure costs are controlled;

• Ensure adequate cash flow;

• Establish and control profitability levels.

One of the major roles of the finance department is to identify

JYOTI NIVAS COLLEGE (AUTONOMOUS) Page 2

Finance also prepares financial documents and final accounts for

JYOTI NIVAS COLLEGE (AUTONOMOUS) Page 3

Financial Management Objectives

Efficient Financial management requires of some objectives,

Objective of financial management is same as the objective of a

The term profit is vague and it involves much more

It is commonly agreed that the objective of a firm is to maximize

Value of a firm is represented by the market price of the

JYOTI NIVAS COLLEGE (AUTONOMOUS) Page 4

price acts as the performance index or report card of the firm’s

Prices in the share markets are largely affected by many factors

The anticipated rate of earnings per share of the company.

The Capitalization Rate.

Methods of Financial Management

In the field of financing there are various methods to procure

At the time of evaluating capital expenditure projects methods

JYOTI NIVAS COLLEGE (AUTONOMOUS) Page 5

firm can increase its profitability without affecting by an efficient

Similarly for the evaluation of a firm’s performance there are

UNDERSTANDING MUTUAL FUND

Mutual fund is a trust that pools money from a group of investors

JYOTI NIVAS COLLEGE (AUTONOMOUS) Page 6

Every Mutual Fund is managed by a fund manager, who using his

Passed Pool their

JYOTI NIVAS COLLEGE (AUTONOMOUS) Page 7

When an investor subscribes for the units of a mutual fund, he

Any change in the investments made into capital market

a. If the market value of the assets of a fund is Rs. 100,000.

JYOTI NIVAS COLLEGE (AUTONOMOUS) Page 8

b. The total number of units issued to the investors is equal to

c. Then the NAV of this scheme=(A)/(B), i.e. 100,000/10,000

d. Now if an investor ‘X’ owns 5units of this scheme.

e. Then his total contribution to the fund is Rs. 50 (i.e. Number

ORGANISATION OF A MUTUAL FUND

There are many entities involved and the diagram below

JYOTI NIVAS COLLEGE (AUTONOMOUS) Page 9

ADVANTAGES OF MUTUAL FUND

1. Portfolio Diversification: - Mutual Funds invest in a well-

2. Professional Management: - Fund manager undergoes

3. Less Risk: - Investors acquire a diversified portfolio of

4. Low Transaction: - Costs due to economies of scale (benefits

5. Liquidity: - An investor may not be able to sell some of the

6. Choice of Schemes: - Mutual Funds provide investors with

7. Transparency: - Funds provide investors with updated

JYOTI NIVAS COLLEGE (AUTONOMOUS) Page 10

material facts are disclosed to the investors as required by the

8. Flexibility: - Investors also benefit from the convenience and

9. Safety: - Mutual Fund industry is a part of a well-regulated