Dissertation Project On Mutual Funds

“A STUDY ON DIFFERENT SCHEMES WITH COMPARISON &
EVALUATION AMONG THE MUTUAL FUNDS WITH

REFERENCE TO THE KOTAK AMC COMPANY”
PROJECT SUBMITTED
BY
HARSH JAIN
PGDM, FINANCE
ROLL-5130
SESSION: 2010-11
UNDER THE GUIDENCE OF

PROF. MADANA MOHAN
(ASSOCIATE PROFESSOR)
A DISSERTATION SUBMITTED AS A PARTIAL FULFILLMENT FOR

THE AWARD OF POST GRADUATE DIPLOMA IN MANAGEMNT IN
FINANCE
VISHWA VISHWANI INSTITUTE OF SYSTEMS & MANAGEMENT

CERTIFICATION FROM INTERNAL GUIDE
This is to certify that the dissertation titled “a study on different schemes with comparison &
evaluation among the mutual funds with reference to the KOTAK AMC COMPANY.”
By Mr. HARSH JAIN
Is a record of research work done during the year 2010-11, under my directions and that the
dissertation has not previously formed the basis for the award of any degree or Diploma or
Associate ship , with the similar title, by any other university/Institute.
Hyderabad Signature of Internal Guide
Date : (Name of the internal Guide)

DECLARATION
I Harsh Jain, hereby declare that this project titled “a study on different schemes with comparison
& evaluation among the mutual funds with reference to the KOTAK AMC COMPANY,
Hyderabad – An Analytical Study” is an original work carried out by me, under the guidance of
Prof. MADANA MOHAN, Associate Professor, Finance Department, VVISM.
The report submitted by me is a bonafide work carried by me of my own efforts and it has not
been submitted to any other University or published any time before.
Signature of the student

(HARSH JAIN)
Date:
Place: Hyderabad
CERTIFICATION
This is to certify that Mr. Harsh Jain, PGDM, IV Semester, at Vishwa Vishwani Institute of
Systems & Management, Hyderabad, has prepared the dissertation titled “ a study on different
schemes with comparison & evaluation among the mutual funds with reference to KOTAK AMC
COMPANY” during the year 2010-11 under the guidance of Prof. MADANA MOHAN as a
partial fulfillment , for the award of Post Graduate Diploma in Management, by our Institute.
Hyderabad (Signature)
Date: Director, Academics
ACKNOWLEDGEMENT
I would like to express my appreciation and thanks to all those with whom I have had the
opportunity to work and whose inputs & insights have helped me in furthering in my knowledge
and understanding of my subject.
I would like to offer my sincere gratitude to Mr. Praveen Reddy, sales manager- internet trading,
KOTAK AMC COMPANY, Hyderabad. His help was invaluable to me in understanding and
structuring my project.
My heartfelt thanks go out to my project guide Prof. Madana Mohan, Vishwa Vishwani Institute
of System and Management, Hyderabad, who was instrumental in designing the project deserve
more than just a few lines in acknowledgement and I am deeply indebted to him with regard to
the successful completion of the project. Without him guidance and encouragement it would not
have been possible for me to complete my project successfully.
I would like to thank academic director and director operations and faculty members of my
institute for providing me the opportunity to work in a professional environment.
(HARSH JAIN)
EXECUTIVE SUMMARY
KOTAK AMC COMPANY is one of the profitable leading stock broking companies and
succeeds over the competition in the market.
TABLENO. TITLE PAGE NO.
Equity Linked Saving Scheme (Dividend Option) 30-33
The study covers two major schemes, equity linked saving scheme and balanced schemes with
4.1.1 Calculation of Average Return for the month January 2010 30
both dividend and growth option. The period of the study is January 2010 to April 2010. The
4.1.2 Calculation of Average Return for the month February 2010 31
comparative study extends to two public sector companies LIC and SBI and two private sector
4.1.3 Calculation of Average Return for the month March 2010 32
companies RELIANCE and KOTAK.
4.1.4 Calculation of Average Return for the month April 2010 33
The main objective Equity
is to study the performance
Linked of equity
Saving Scheme linked
(Growth saving scheme of mutual
Option) fund
34-37
companies for the period
4.1.5 of January
Calculation 2010 toReturn
of Average April 2010.
for theAnd study
month the performance
January 2010 of balanced
34
schemes 4.1.6
of mutual fund companies for the period of January 2010 to April 2010.
Calculation of Average Return for the month February 2010 35
4.1.7
The study is mainlyCalculation
carried outofinAverage
order toReturn for the
appraise themonth March 2010
performance 36
of equity linked saving
4.1.8balanced
scheme and Calculation
schemes ofofAverage Return
LIC, SBI, for the month
RELIANCE ANDApril 2010 As there is a 37
KOTAK. lot of
competition biddingBalanced Schemeand
in this industry (Dividend Option)
many foreign 38-41 in
companies are launching their funds
4.1.9becomeCalculation
India, it has of Average
important that Return
companies for the month
differentiate January 2010
their products 38 the
in order to capture
domestic4.1.10 Calculation
market, hence a study of equity
Average Return
linked for the
saving monthand
scheme February 2010
balanced 39 the
schemes enable
4.1.11to choose
organization Calculation ofgive
the sectors Average Returnreturns.
maximum for the month March 2010 40
Methodology is a systematic and objective process of identifying and formulating the problem by
Balanced Scheme (Growth Option) 42-45
setting objectives and methods for collecting, editing, calculating, evaluating and analyzing and
4.1.13 Calculation of Average Return for the month January 2010 42
interpreting and presenting data in order to find justified solutions. The current position is
4.1.14 Calculation of Average Return for the month February 2010 43
analyzed and new ideas are suggested to improve the current condition.
4.1.15 Calculation of Average Return for the month March 2010 44
LIST OF TABLES
TABLE NO. TITLE PAGE NO.
Equity Linked Savings Scheme (Dividend Option)
For The Period January 2010 – April 2010
4.2.1 Calculation of Average Return 45
4.2.2 Calculation of Sharpe Index Ratio 46
4.2.3 Calculation of Treynor Ratio 47
Equity Linked Savings Scheme (Growth Option)
LIST OF TABLE WITH TOOLS

Balanced Scheme (Dividend Option)
Balanced Scheme (Growth Option)
INTRODUCTION
A Mutual Fund is a trust that pools the savings of a number of investors who share a common
financial goal. The money thus collected is then invested in capital market instruments such as
shares, debentures and other securities. The income earned through these investments and the
capital appreciations realized are shared by its unit holders in proportion to the number of units
owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it
offers an opportunity to invest in a diversified, professionally managed basket of securities at a
relatively low cost. The flow chart below describes broadly the working of a Mutual Fund.
A Mutual Fund is a body corporate registered with the Securities and Exchange Board of India
(SEBI) that pools up the money from individual/corporate investors and invests the same on
behalf of the investors/unit holders, in Equity shares, Government securities, Bonds, Call Money
Markets etc, and distributes the profits. In the other words, a Mutual Fund allows investors to
indirectly take a position in a basket of assets. Mutual Fund is a mechanism for pooling the
resources by issuing units to the investors and investing funds in securities in accordance with
objectives as disclosed in offer document. Investments in securities are spread among a wide
cross-section of industries and sectors thus the risk is reduced. Diversification reduces the risk
because all stocks may not move in the same direction in the same proportion at same time.
Investors of mutual funds are known as unit holders.
The investors in proportion to their investments share the profits or losses. The mutual funds
normally come out with a number of schemes with different investment objectives which are
launched from time to time. A Mutual Fund is required to be registered with Securities Exchange
Board of India (SEBI) which regulates securities markets before it can collect funds from the
public.
NEED FOR THE STUDY
The project’s idea is to project Mutual Fund as a better avenue for investment on a long-term or
short-term basis. Mutual Fund is a productive package for a lay-investor with limited finances,
this project creates an awareness that the Mutual Fund is a worthy investment practice. Mutual
Fund is a globally proven instrument. Mutual Funds are ”Unit Trust” as it is called in some parts
of the world has a long and successful history, of late Mutual Funds have become a hot favorite
of millions of people all over the world.
The driving force of Mutual Funds is the ‘safety of the principal’ guaranteed, plus the added
advantage of capital appreciation together with the income earned in the form of interest or
dividend. The various schemes of Mutual Funds provide the investor with a wide range of
investment options according to his risk bearing capacities and interest besides; they also give
handy return to the investor. Mutual Funds offers an investor to invest even a small amount of
money, each Mutual Fund has a defined investment objective and strategy. Mutual Funds
schemes are managed by respective asset managed companies sponsored by financial institutions,
banks, private companies or international firms. A Mutual Fund is the ideal investment vehicle
for today’s complex and modern financial scenario.
The study is basically made to analyze the various open-ended equity schemes of different Asset
Management Companies to highlight the diversity of investment that Mutual Fund offer. Thus,
through the study one would understand how a common man could fruitfully convert a pittance
into great penny by wisely investing into the right scheme according to his risk taking abilities.
OBJECTIVE OF THE STUDY
1. To project Mutual Fund as the ‘productive avenue’ for investing activities.

2. To show the wide range of investment options available in Mutual Funds by explaining its
various schemes.
3. To compare the schemes based on Sharpe’s ratio, Treynor’s ratio, b Coefficient, Returns and
show which scheme is best for the investor based on his risk profile.
4. To help an investor make a right choice of investment, while considering the inherent risk
factors.
5. To understand the performance of different schemes in different companies like LIC, SBI,
RELIANCE AND KOTAK.
To understand the recent trends in Mutual Funds world. The comparison between these schemes
is made based on the following factors
A) Sharpe’s Ratio
B) Treynor’s Ratio
C) B (Beta) co-efficient.
D) Returns
SCOPE OF THE STUDY
The study here has been limited to analyze open-ended equity Growth schemes of different Asset
Management Companies namely Kotak Mahindra Mutual Fund, Reliance Mutual Fund, LIC and
SBI Mutual Funds each scheme is analyzed according to its performance against the other, based
on factors like Sharpe’s Ratio, Treynor’s Ratio, b (Beta) Co-efficient, Returns.
RESEARCH METHODOLOGY
The Methodology involves randomly selecting Open-Ended equity schemes of different fund
houses of the country. The data collected for this project is basically from one source, that is:-
Secondary sources: Collection of data from Internet and Books.
And some formulas or factors which help to find out the performance of different schemes of
mutual funds and compare with the different company mutual funds.
LIMITATIONS OF THE STUDY
1. The study is limited only to the analysis of different schemes and its suitability to different
investors according to their risk-taking ability.
2. The study is based on secondary data available from monthly fact sheets, websites and other
books, as primary data was not accessible.
3. The study is limited by the detailed study of various schemes of Four Asset Management
company.
COMPANY PROFILE
Kotak Mahindra Mutual Fund (KMMF) is managed by Kotak Mahindra Asset Management
Company Ltd., a wholly owned subsidiary of Kotak Mahindra Bank Ltd. Kotak Mahindra Mutual
Fund launched its Schemes in December 1998 and today manages assets over and above Rs.
7353.82 cr. contributed by more than 1,99,818 investors in various schemes. KMMF has to its
credit the launching of innovative schemes and plans like Kotak Gilt and Free Life Insurance
with Kotak Bond Deposit Plan.
Kotak Mahindra is one of India's leading financial institutions, offering complete financial
solutions that encompass every sphere of life. From commercial banking, to stock broking, to
mutual funds, to life insurance, to investment banking, the group caters to the financial needs of
individuals and corporate.
The group has a net worth of around Rs.1,700 crore and employs over 4,000 employees in its
various businesses. With a presence in 74 cities in India and offices in New York, London, Dubai
and Mauritius, it services a customer base of over 5,00,000
Kotak Mahindra has international partnerships with Goldman Sachs (one of the world's largest
investment banks and brokerage firms), Ford Credit (one of the world's largest dedicated
automobile financiers) and Old Mutual (a large insurance, banking and asset management
conglomerate).
Kotak Mahindra Asset Management Company Limited (KMAMC), a wholly owned subsidiary
of KMBL, is the asset manager for Kotak Mahindra Mutual Fund (KMMF).
KMAMC started operations in December 1998 and has over 1,99,818 investors in various
schemes. KMMF offers schemes catering to investors with varying risk - return profiles and was
the first fund house in the country to launch a dedicated gilt scheme investing only in government
securities.
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited.
This company was promoted by Uday Kotak, Sidney A. A. Pinto and Kotak & Company.
Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986, and that's when the
company changed its name to Kotak Mahindra Finance Limited.
Since then it's been a steady and confident journey to growth and success. Kotak Mahindra
Finance Limited starts the activity of Bill Discounting Kotak Mahindra Finance Limited enters
the Lease and Hire Purchase market.
The Auto Finance division is started the Investment Banking Division is started.
Enters the Funds Syndication sector
1995 Brokerage and Distribution businesses incorporated into a separate company - Kotak
Securities. Investment Banking division incorporated into a separate company - Kotak Mahindra
Capital Company.
1996 The Auto Finance Business is hived off into a separate company - Kotak Mahindra Primus
Limited. Kotak Mahindra takes a significant stake in Ford Credit Kotak Mahindra Limited, for
financing Ford vehicles. The launch of Matrix Information Services Limited marks the Group’s
entry into information distribution.
1998 Enters the mutual fund market with the launch of Kotak Mahindra Asset Management
Company.
Kotak Mahindra ties up with Old Mutual plc. For the Life Insurance business. Kotak Securities
launches kotakstreet.com - its on-line broking site. Formal commencement of private equity
activity through setting up of Kotak Mahindra Venture Capital Fund.
2001 Matrix sold to Friday Corporation Launches Insurance Services

2003 Kotak Mahindra Finance Ltd. converts to bank Kotak Mahindra is one of India's leading
financial institutions, offering complete financial solutions cities in India and offices in New
York, London, Dubai and Mauritius, it services a customer base of over 5,00,000 has
international partnerships with Goldman Sachs (one of the world's largest investment banks and
brokerage firms), Ford Credit (one of the world's largest dedicated automobile financiers) and
Old Mutual (a large insurance, banking and asset management conglomerate that encompass
every sphere of life. From commercial banking, to stock broking, to mutual funds, to life
insurance, to investment banking, the group caters to the financial needs of individuals and
corporates.
The group has a net worth of around Rs.1,700 crore and employs over 4,000 employees in its
and Mauritius, it services a customer base of over 5,00,000.
Kotak Mahindra has international partnerships with Goldman Sachs (one of the world's largest
investment banks and brokerage firms), Ford Credit (one of the world's largest dedicated
automobile financiers) and Old Mutual (a large insurance, banking and asset management
conglomerate).
Kotak Mahindra Asset Management Company Limited (KMAMC), a wholly owned subsidiary
of KMBL, is the asset manager for Kotak Mahindra Mutual Fund (KMMF). KMAMC started
operations in December 1998 and has over 1,99,818 investors in various schemes. KMMF offers
schemes catering to investors with varying risk - return profiles and was the first fund house in
the country to launch a dedicated gilt scheme investing only in government securities.
Kotak Investment Banking* (KIB), India's premier Investment Bank is a strategic joint venture
between Kotak Mahindra Bank Limited (KMBL) and the Goldman Sachs Group, LLP.
KMBL has come into existence in March 2003 through the conversion of Kotak Mahindra Bank
Ltd. into a Commercial Bank. Kotak Mahindra is one of India's leading financial institutions,
offering complete financial solutions that encompass every sphere of life. From commercial
banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group
caters to the v needs of individuals and corporates.
The group has a net worth of over Rs.1,550 crore and employs over 3,000 employees in its
and Mauritius, it services a customer base of over 5,00,000. Kotak Mahindra has international
partnerships with Goldman Sachs (one of the world's largest investment banks and brokerage
firms), Ford Credit (one of the world's largest dedicated automobile financiers) and Old Mutual
(a large insurance, banking and asset management conglomerate).
Kotak Investment Banking (KIB) and Kotak Institutional Equities represent the securities
business of the Kotak Mahindra Group (KI), both, joint ventures with Goldman Sachs involved in
brokerage, distribution and research.
We are a full service Investment Bank bringing to our clients the global reach and expertise of
Goldman Sachs and the local knowledge and skills of Kotak Mahindra. As a full service
Investment Bank, Kotak Investment Banking core business areas include Equity Issuances,
Mergers & Acquisitions, Advisory Services and Fixed Income Securities and Principal Business.
Our strength lies in understanding our clients' businesses backed by a strong research team and an
extensive distribution network, which spans a wide variety of investors across the country. We
are also the first Indian Investment Bank to be registered with the Securities & Futures Authority
in the UK (through our wholly owned subsidiary) and the National Association of Securities and
Dealers in the USA.
We are also the first Indian Investment Bank to be appointed by the Government of India as a
Co-lead Manager in their international divestment of Gas Authority of India Ltd through a GDR
offering. We are today well positioned in an increasing globalised environment to provide full
service to its clients based either in India or overseas.
INDUSTRY PROFILE
The Indian Brokerage Industry consists of companies that primarily act as agents for the buying
and selling of securities (e.g. stocks, shares, and similar financial instruments) on a commission
or transaction fee basis. Hence, to understand this industry we have to study
Security Market:
Security market has two main interdependent segments: Primary market and the Secondary
market.
PRIMARY MARKET:
The primary is that part of the capital markets that deals with the issuance of new securities.
Companies, governments or public sector institutions can obtain funding through the sale of a
new stock or bond issue. This is typically done through a syndicate of securities dealers. The
process of selling new issues to investors is called underwriting. In the case of a new stock issue,
this sale is an initial public offering (IPO). Dealers earn a commission that is built into the price
of the security offering, though it can be found in the prospectus. In primary market certain
companies issue their shares directly to the public, collect applications and after sorting out the
good issues, they put in their applications. The share brokers get their brokerage on the
transactions made.
SECONDARY MARKET:
The secondary market is that market in which trading is done of securities that have already been
issued in an initial private or public offering. The secondary market comprises of brokerage that a
broker earns in the buying and selling of companies that are listed in the stock exchange. These
stock broker are in charge of the conformation and carrying out of transactions. Orders are taken
and executed on behalf of the clients. The fluctuation of rates in the share market makes the
activity in a trade market a dynamic process. It is necessary for a broker to have adequate
knowledge about the economic and political factors as they affect the share market.
DEVELOPMENT IN BROKERAGE INDUSTRY
In actuality the brokerage industry continues to develop rapidly. Many of the traditional
restrictions against banking activities within the brokerage industry are being eliminated and the
barriers are disappearing. Due to this, some commercial banks have as subsidiaries, brokerage
houses that offer discounts and some of them have available accounts that offer all of the services
that are offered by a checking account. The basic function of a brokerage firm is to execute buy
and sell orders for clients. Traditionally these firms have offered the investigation of the quality
and the possibilities of investing in a variety of investment products. It is still accustomed for
brokerage firms to offer information about possible investments free of charge. This activity of
bringing free of charge stock investment reports is one of the main tools that are utilized by
brokerage houses to compete against other firms and to investors it continues to be an important
service. Despite the previously, not all investors consider that investment reports is an important
service. Some investors prefer other types of services since many investors don‟t believe that
these investment reports are useful. In order to capture this vast diverse clientele, the brokerage
industry has segmented itself.
After the restrictions in commissions were eliminated, several brokerages began to open up their
doors as discount brokerage firms. In actuality, brokerage firms may be classified into full service
brokers and discount brokers. Full service brokerage firms continue to offer informative stock
reports and a level of service much higher than other brokerage houses. Discount brokerage
houses only dedicate themselves to execute orders for clients. Full service brokers are sellers
looking for purchasing and selling for clients and offering more customer service than is
available from discount brokers. It is many times possible that a client will not even know who is
taking care of the buy or sell order that they placed. These differences in services and
philosophies may lead to great differences in commission costs. It is evident that these
differences may be an important factor in the return of an investment. This is particularly true
when we see that these commissions are added to the purchase as well as to the sale of a stock or
other investments.
MAJOR STOCK EXCHANGES IN INDIA:
BOMBAY STOCK EXCHANGE
Background:
The BSE Sensitive Index (1978-79=100) has, to a considerable extent, been serving the purpose
of quantifying the price movements as also reflecting the sensitivity of the market in an effective
manner. The number of companies listed on the Bombay Stock Exchange has registered a
phenomenal increase from 992 in the year 1980 to about 4800 companies by the end of July 2005
and their combined market capitalization rose from Rs. 5,421 crores to around Rs. 18,
00,000crores at end of July 2005. These factors necessitated compilation of a new broad-based
index series reflecting the present market trends in a more effective manner and providing a
better representation of the increased equity stocks, market capitalization as also the newly
emerged industry groups.
Towards this end, the Exchange constructed and launched on 27th May 1994, two index series
viz. the BSE-200 and the DOLLEX.
Coverage: The equity shares of 200 selected companies from the specified and non-specified
lists of this Exchange have been considered for inclusion in the sample for `BSE-200'. The
selection of companies has primarily been done on the basis of current market capitalization of
the listed scripts on the exchange. Besides market capitalization, the market activity of the
companies as reflected by the volumes of turnover and certain fundamental factors were
considered for the final selection of the 200 companies.
NATIONAL STOCK EXCHANGE

The 13-year-old National Stock Exchange (NSE) has outshined the 130 years old Bombay Stock
Exchange (BSE) in terms of turnover and volumes. The BSE has lost its market share in these
segments from 36 per cent to 31 percent in last three years. The turnover in BSE stood at around
Rs 2,950 crore as on August 17, 2005 while the turnover in NSE was Rs 3,926 crore. The
volumes (numbers of shares traded) of NSE at 2.94 crore was also much higher than the volumes
of BSE. The NSE has rewritten a number of rules and upset many traditions. As the derivatives
segment has immense effect on the cash market, the movement in this segment mostly determines
the trend in the market. Against nearly 1,400 companies listed on the NSE, the BSE has nearly
4,800 listed companies. Despite such a huge number of listed companies, the total market
capitalization of BSE is around Rs 20 lakh crore while on the other hand NSE has a total market
capitalization of Rs 19.7 lakh crore. The most tracked index on NSE, CNX Nifty also has more
number of stocks than the BSE Sensex. Nifty represents 50 stocks while the Sensex represents
only 30 stocks. The presence of more stocks on Nifty gives a better valuation than Sensex.
LITERATURE REVIEW
The Indian mutual fund industry is dominated by the Unit Trust of India (UTI) which has a total
corpus fund of Rs 700 billion collected from more than 20 million investors. The UTI has many
fund schemes in all categories like equity, balanced income etc with some being open ended and
some being closed ended. The unit scheme with 1964 commonly referred to as US 64, which is
balance fund, is the biggest scheme with a corpus of about Rs 200 billion. UTI was floated by
financial institutions and is governed by a special Act of parliament. Most of the investors believe
that the UTI is government owned and controlled which while legally incorrect and true for all
practical purposes. The second largest category of mutual fund is the one floated by nationalized
banks. Canbank asset management floated by Canara bank and SBI funds management floated by
State Bank of India is the largest of these. GIC AMC, the LIC are some of the prominent of
AMCs is about Rs 150 billion. The third largest category of mutual funds are the ones floated by
the private sector and by foreign asset management companies, the largest of these are prudential.
As we know that mutual fund is an instrument of investing money. Nowadays bank rates fallen
down and are generally below inflation rate. Therefore, keeping large amounts of money in bank
is not a wise option, as in real terms the value money decreases over a period of time. One of the
options is to invest the money in stock market. But a common investor is not informed and
competent enough to understand the intricacies of the stock market. This is where mutual funds
come to the rescue of an investor.
MAJOR MUTUAL FUND COMPANIES IN INDIA
ABN AMRO Mutual Fund
ABN AMRO Mutual Fund was set up on 15 April, 2004 with ABN AMRO Trustee (India)
Private Limited as the Trustee Company. The AMC, ABN AMRO Asset Management (India)
Limited was incorporated on 4 November, 2003. Deutsche Bank AG is the custodian of ABN
AMRO mutual fund.
Birla Sun Life Mutual Fund
Birla Sun Life Mutual Fund is a joint venture of Aditya Birla group and Sun Life Financial. Sun
Life Financial is a global organization evolved in 1871 and is being represented in Canada, the
United States, the Philippines, Japan, Indonesia and Bermuda apart from India. Birla Sun Life
Mutual Fund follows a conservative long term approach to investment. Recently it crossed AUM
of Rs 10,000 crores.
Bank of Baroda Mutual Fund (BOB Mutual Fund)
Bank of Baroda Mutual Fund or BOB Mutual Fund was set up on 30 October, 1992 under the
sponsorship of Bank of Baroda. BOB Asset Management Company is the AMC of BOB Mutual
Fund and was incorporated on 5 November, 1992. Deutsche Bank AG is the custodian.
HDFC Mutual Fund

HDFC Mutual Fund was set up on 30 June, 2000 with two sponsorers namely Housing
Development Finance Corporation and Standard Life Investments Limited.
HSBC Mutual Fund
HSBC Mutual Fund was set up on 27 May, 2002 with HSBC Securities and Capital Markets
(India) Private Limited as the sponsored. Board of Trustees, HSBC Mutual Fund acts as the
Trustee Company of HSBC Mutual Fund.
ING Vysya Mutual Fund
ING Vysya Mutual Fund was set up on 11 February, 1999 with the same named Trustee
Company. It is a joint venture of Vysya and ING. The AMC, ING Investment Management
(India) Private Limited was incorporated on 6April, 1998.
Sahara Mutual Fund
Sahara Mutual Fund was set up on 18 July, 1996 with Sahara India Financial Corporation
Limited as the sponsor. Sahara Asset Management Company Private Limited incorporated on
31August, 1995 works as the AMC of Sahara Mutual Fund. The Paid up capital of the AMC
stands at Rs 25.8 crore.
State Bank of India Mutual Fund
State Bank of India Mutual Fund is the first bank sponsored mutual fund to launch offshore fund,
the India Magnum Fund with a corpus of Rs 225 crore approximately is the largest bank
sponsored mutual fund in India. They have already launched 35 schemes out of which 15 have
already yielded handsome returns to investors. State Bank of India Mutual Fund has more than
Rs 5,500 crore as AUM. Now it has an investor base of over eight hundred thousand spread over
18 schemes.
Tata Mutual Fund
Tata Mutual Fund (TMF) is a trust under the Indian Trust Act 1882. The sponsors for Tata
Mutual Fund are the Tata Sons Limited., and Tata Investment Corporation Limited. The
investment manager is Tata Asset Management Limited and its Tata Trustee Company Private
Limited. Tata Asset Management Limited is one of the fastest growing companies in the country
with more than Rs 7,703 crore as of 30April, 2005.
Standard Chartered Mutual Fund
Standard Charted Mutual Fund was set up on 13 March 2000 sponsored by Standard Charted
Bank. The trustee is Standard Chartered Trustee Company Private Limited. Standard Chartered
Asset Management Company Private Limited is the AMC which was incorporated with SEBI on
20 December, 1999.
Franklin Templeton India Mutual Fund
Franklin Templeton India Mutual Fund is a California (USA) based company with a global AUM
of over USD 409.2 billion. It is one of the largest financial services groups in the world. Investors
can buy or sell the mutual fund through their financial advisor or through mail or through their
website. They have open end diversified equity schemes, open end sector equity schemes, open
end hybrid schemes, open end tax saving schemes, open end income and liquid schemes, closed
end income schemes and open end fund of fund schemes to offer.
Morgan Stanley Mutual Fund India
Morgan Stanley Mutual Fund India is a worldwide financial service and is the leading in the
market in securities, investment management and credit services. Morgan Stanley Investment
Management (MSIM) was established in the year 1975. It provides customized asset management
services and products to governments, corporations, pension funds and non profits organizations.
Its services are also extended to high net worth individuals and retail investors. In India it is
known as Morgan Stanley Investment Management Private Limited (MSIM India) and its AMC
is Morgan Stanley Mutual Fund (MSMF). This is the first close end diversified equity scheme
serving the needs of Indian retail investors focusing on a long term capital appreciation.
Escorts Mutual Fund
Escorts Mutual Fund was set on 15 April, 1996 with Escorts Finance Limited as its sponsor. The
trustee company is Escorts Investment Trust Limited. Its AMC was incorporated on 1 December,
1995 with the name Escorts Asset Management Limited.
Benchmark Mutual Fund
Benchmark Mutual Fund was set up on 12 June, 2001 with Niche Financial services Private
Limited as the sponsorer and Benchmark Trustee Company Private Limited as the Trustee
Company, incorporated on 16 October, 2000 and Headquarters at Mumbai. Benchmark Asset
Management Company Private Limited is the AMC.
Canbank Mutual Fund
Canbank Mutual Fund was set up on 19 December, 1987 with Canara Bank acting as the
sponsorer.Canbank Investment Management Services Limited incorporated on 2 March, 1993 is
its AMC. The corporate office of the AMC is in Mumbai.
Chola Mutual Fund
Chola Mutual Fund came into existence under the sponsorship of Cholamandalam Investment
&Finance Company Limited, was set up on 3 January 1997. Cholamandalam AMC Limited is the
Trustee Company and AMC is Cholamandalam AMC Limited
GIC Mutual Fund
GIC Mutual Fund GIC Mutual Fund, sponsored by General Insurance Corporation of India
(GIC), a government of India undertaking and the four public sector insurance companies, viz,
National Insurance Company Limited(NIC), The New India Assurance Company(NIA), Oriental
Insurance Company(OIC) and United India Insurance Company Limited(UII). These are
constituted as a Trust in accordance with the provisions of the Indian Trusts Act, 1882. On the
basis of their structure and objective mutual funds can be classified into following major types:
viz based on the structure, and based on the investment objective
BASED ON THE STRUCTURE:
Open ended funds:
An open end fund is one that is available for subscription all through the year these do not have a
fixed maturity period. Investor can conveniently buy and sell units at net asset value (NAV)
related prices. The key feature of open end schemes is their liquidity.
Closed ended funds:
A close ended fund has a stipulated maturity period which generally ranging from 3-15 years.
The fund is open for subscription only during a specified period. Investors can invest in the
scheme at the time of the initial public issue and there are listed in order to provide an exit route
to the investors; some close ended funds give an option of selling back the units to the mutual
fund through periodic repurchase at NAV related prices. SEBI regulations stipulate that at least
one of the exit routes is provided to the investors.
Interval funds:
Interval funds combine the features of open ended and close ended schemes. They are open for
sale or redemption during the pre determined intervals at NAV related prices.
Real Estate funds:

These are close ended funds with investments in real estates properties. It is a long term yielding
fund.
BASED ON INVESTMENT OBJECTIVE
Growth funds:
The aim of growth funds is to provide capital appreciation over the medium to long term. Such
schemes normally invested mainly in their corpus equities. It has been proven that return from
stocks, have outperformed most other kind of investments held over the long term. Growth
schemes are ideal for investors having a long term outlook seeking growth over a period of time.
Income funds:
The aim of income fund is to provide regular and steady income on securities such as bonds,
corporate and government securities. Income funds are ideal for capital stability and regular
income.
Growth market funds:
The aim of money market funds is to provide liquidity preservation of capital and moderate
income. These schemes generally invest in safer short term instruments such as treasury bills,
certificates of deposit, commercial paper and inter bank call money. Returns on these schemes
may fluctuate depending upon the interest rates prevailing in the market. These are ideal for
corporate and individual investors as a means to park their surplus for short period.
Load funds:
The load fund is one that charges commission for entry of exit. That is, each time you buy or sell
units is in the fund, a commission will be payable. Typically entry and exit loads range from 1
percent to 2 percent. It could be worth paying the load, if the fund has a good performing history.
No- load funds:

A No –load fund is one that does not charge a commission for entry or exit. That is, commission
is payable on purchases or sale of units in the fund. The advantage of a Non-load fund is that the
entire corpus is put to work.
Equity fund:
Mutual fund invested only in equity shares of a company and undertakes risk associated with
equity shares.
Hedge funds:
Mutual fund which employ their funds by speculative trading, that are buying shares whose
prices are likely to rise and selling shares whose prices are likely to dip or fall.
OTHER SCHEMES
Tax saving schemes:
The schemes offer tax rebates to the investors under specific provisions of the Indian income tax
laws as the government offers tax incentives for investment in specified avenues. Investments
made in equity liked savings schemes (ELSS) and pension schemes are allowed as deduction
under section 88 of the Income Tax Act, 1961. The Act also provides opportunities to investors to
save capital gains under section 54EA and 54EB by investing in mutual funds provided the
capital asset has been sold prior to April 1, 2000 and the amount is invested before September 30,
2000.
SPECIAL SCHEMES
Industry Specific Schemes:

Industry specific schemes invest only in the industries specified the offer document. The
investment of these funds is linked to specific industries like info Tech, FMCG, and
Pharmaceuticals, etc.
Index schemes :
Index funds attempt to replicate the performance of a particular index such as BSE, Sensex to the
NSE50.
Sectoral schemes:
Sectoral funds are those, which invest exclusively in a specified of group of industries of various
segments such as “A” group shares of initial public offerings
SELECTED MUTUAL FUNDS & SCHEMES
LIC Mutual Fund
Life Insurance Corporation of India set up LIC Mutual Fund on 19th June 1989 and contributed
Rs. 2 Crores towards the corpus of the Fund. LIC Mutual Fund was constituted as a Trust in
accordance with the provisions of the Indian Trust Act, 1882. The Trustees of the LIC Mutual
Fund have exclusive ownership of Trust Fund and are invested with general power of
superintendence, discretion and management of the affairs of the Trust. LIC Mutual Fund Asset
Management Company Ltd. was formed on 20th April 1994 in compliance with the Securities
and Exchange Board of India (Mutual Funds) Regulations, 1993. The Company commenced
business on 29th April 1994. The Trustees of LIC Mutual Fund have appointed LIC Mutual Fund
Asset Management Company Ltd. as the Investment Managers for LIC Mutual Fund. The
Trustees are responsible for appointing a Custodian. The Trustees should also ensure that the
activities of the Trust and the Asset Management Company are in accordance with the Trust
Deed and the SEBI Mutual Fund Regulations as amended from time to time. The Trustees have
also to report periodically to SEBI on the functioning of the Fund.
SBI Mutual Fund
SBI Mutual Fund is India’s largest bank sponsored mutual fund and has an enviable track record
in judicious investments and consistent wealth creation. The fund traces its lineage to SBI –
India’s largest banking enterprise. The institution has grown immensely since its inception and
today it is India's largest bank, patronized by over 80% of the top corporate houses of the
country.
SBI Mutual Fund is a joint venture between the State Bank of India and Society General Asset
Management, one of the world’s leading fund management companies that manages over US$
500 Billion worldwide.
In twenty years of operation, the fund has launched 38 schemes and successfully redeemed
fifteen of them. In the process it has rewarded its investors handsomely with consistent returns.
A total of over 5.8 million investors have reposed their faith in the wealth generation expertise of
the Mutual Fund. Schemes of the Mutual fund have consistently outperformed benchmark indices
and have emerged as the preferred investment for millions of investors and HNI‟s.
Today, the fund manages over Rs. 38,782 crore of assets and has a diverse profile of investors
actively parking their investments across 38 active schemes.
The fund serves this vast family of investors by reaching out to them through network of over
130 points of acceptance, 28 investor service centers, 46 investor service desks and 56 district
organizers. SBI Mutual is the first bank-sponsored fund to launch an offshore fund – Resurgent
India Opportunities Fund. Growth through innovation and stable investment policies is the SBI
MF credo.
DATA ANALYSIS AND INTERPRETATIONS
Data are the facts and numerical figures of certain information expressed in the tabular form. On
the other hand interpretations explanations about the facts and figures expressed in terms of
words and sentences.
TOOLS AND TECHNIQUES
THE SHARPE MEASURE
In this model, performance of a fund is evaluated on the basis of Sharpe ratio, which is a measure
developed to calculate risk adjusted returns. The Sharpe ratio is the difference between the
annualized return ( Rp ) and the risk free return ( Rf ) divided by the Standard Deviation ( SD ),
during the specified period.
SHARPE RATIO = (Rp – Rf )

σ
While a high and positive Sharpe ratio shows a superior risk adjusted performance of a fund, a
low and negative Sharpe ratio is an indicator of unfavorable performance.
TREYNOR MEASURE
Developed by Jack Treynor, this performance measure evaluates funds on the basis of Treynors
index. This index is a ratio of returns generated by the fund over and above risk free rate of return
government, as there is no credit risk, during a given period and systematic risk associated with it
, symbolically, it can be represented by as
Treynor‟s index = Rp – Rf
β
Where Rp represents return on fund, Rf is risk free rate of return and B is beta of the fund. All
risk – adverse investors would like to maximize the value. While a high and positive Treynors
index shows a superior risk adjusted performance of a fund, a low and negative Treynor‟s index
is an indication of unfavorable performance.
TABLE: NO: 1
CALCULATION OF AVERAGE RETURN FOR THE MONTH JANUARY, 2010
EQUITY LINKED SAVING SCHEME (DIVIDEND OPTION)

RETURN = (NAV – 10 / 10) * 100
Fund RELIANCE KOTAK LIC SBI

No. of Days NAV Returns NAV Returns NAV Returns NAV Returns
1 18.27 82.7 16.2107 62.107 9.9777 -0.223 29.45 194.5
2 18.4 84 16.454 64.54 10.0871 0.871 29.61 196.1
3 18.47 84.7 16.5525 65.525 10.1069 1.069 29.7 197
4 18.37 83.7 16.6086 66.086 10.0869 0.869 29.55 195.5
5 18.32 83.2 16.6157 66.157 10.0893 0.893 29.61 196.1
6 18.38 83.8 16.7562 67.562 10.1265 1.265 29.62 196.2
7 18.24 82.4 16.5614 65.614 9.9948 -0.052 29.52 195.2
8 18.28 82.8 16.5816 65.816 10.0463 0.463 29.54 195.4
9 18.35 83.5 16.6924 66.924 10.0983 0.983 29.66 196.6
10 18.35 83.5 16.6353 66.353 10.0757 0.757 29.59 195.9
11 18.45 84.5 16.6543 66.543 10.109 1.09 29.72 197.2
12 18.28 82.8 16.4146 64.146 10.0192 0.192 29.46 194.6
13 18.23 82.3 16.3077 63.077 9.9751 -0.249 29.41 194.1
14 17.87 78.7 15.8232 58.232 9.7222 -2.778 28.81 188.1
15 17.66 76.6 15.6277 56.277 9.6406 -3.594 28.54 185.4
16 17.5 75 15.4756 54.756 9.581 -4.19 28.42 184.2
17 17 70 15.0677 50.677 9.3056 -6.944 27.58 175.8
18 17.13 71.3 15.0658 NO:
TABLE: 50.658
4.1.1 9.332 -6.68 27.63 176.3
19 17.24 72.4 15.0709 50.709 9.4099 -5.901 27.69 176.9
Total 342.79 AVERAGE RETURN1171.759
1527.9 307.1759 – JANUARY, 2010 -22.159
187.7841 553.11 3631.1
AVERAGE RETURN = TOTAL RETURN / NUMBER OF DAYS
Fund Average Fund Average Fund Average Fund Average

Returns Returns Returns Returns
TABLE: NO: 2
RELI 0.804158
KOT 0.616715 LIC SBI -0.01166 1.911105
ANC AK
CALCULATION OF AVERAGE RETURN FOR THE MONTH OF FEBRUARY, 2010
E
RETURN = (NAV – 10 / 10) * 100

1 17.3 73 15.2598 52.598 9.4526 -5.474 27.99 179.9
2 17.13 71.3 15.0131 50.131 9.3175 -6.825 27.72 177.2
3 17.47 74.7 15.3622 53.622 9.4835 -5.165 28.13 181.3
4 17.21 72.1 15.0416 50.416 9.3124 -6.876 27.83 178.3
5 16.79 67.9 14.6898 46.898 9.0741 -9.259 27.36 173.6
6 16.87 68.7 14.8433 48.433 9.1653 -8.347 27.63 176.3
7 17.02 70.2 14.9561 49.561 9.1955 -8.045 27.83 178.3
8 16.98 69.8 14.8806 48.806 9.13 -8.7 27.7 177
9 17.18 71.8 15.0743 50.743 9.2475 -7.525 27.9 179
10 17.11 71.1 14.8907 48.907 9.1689 -8.311 27.75 177.5
11 17.2 72 15.0061 50.061 9.2708 -7.292 27.89 178.9
12 17.36 73.6 15.1537 51.537 9.3617 -6.383 28.14 181.4
13 17.27 72.7 15.0524 50.524 9.3012 -6.988 27.99 179.9
14 17.14 71.4 14.8434 48.434 9.1974 -8.026 27.76 177.6
15 17.14 71.4 14.8376 48.376 9.1846 -8.154 27.77 177.7
16 17.14 71.4 14.83 48.3 9.1918 -8.082 27.78 177.8
17 17.09 70.9 14.8487 48.487 9.178 -8.22 27.71 177.1
TABLE: NO: 4.1.2
18 17.04 70.4 14.7895 47.895 9.1695 -8.305 27.73 177.3
19 17.21 AVERAGE
72.1 14.9385
RETURN49.385 9.30062010 -6.994
– FEBRUARY, 28.07 180.7
Total 325.65 1356.5 284.3114 943.114 175.7029 -142.971 528.68 3386.8

Returns Returns
TABLE: NO: 3 Returns Returns
RELIA 0.713947KOT 0.496376 LIC SBI -0.07525 1.782526
NCE CALCULATION OFAK
AVERAGE RETURN FOR THE MONTH OF MARCH, 2010

RETURN = (NAV – 10 / 10) * 100

1 17.49 74.9 15.2117 52.117 9.4473 -5.527 28.5 185
2 17.69 76.9 15.4427 54.427 9.5859 -4.141 28.87 188.7
3 17.71 77.1 15.4713 54.713 9.5957 -4.043 28.78 187.8
4 17.79 77.9 15.4983 54.983 9.6614 -3.386 28.93 189.3
5 17.9 79 15.653 56.53 9.6964 -3.036 29.18 191.8
6 17.79 77.9 15.5416 55.416 9.6251 -3.749 29.12 191.2
7 17.8 78 15.4933 54.933 9.642 -3.58 29.1 191
8 17.83 78.3 15.5351 55.351 9.6543 -3.457 29.2 192
9 17.84 78.4 15.5092 55.092 9.6341 -3.659 29.26 192.6
10 17.77 77.7 15.4589 54.589 9.5999 -4.001 29.14 191.4
11 17.99 79.9 15.6374 56.374 9.76 -2.4 29.52 195.2
12 18.07 80.7 15.65 56.5 9.7809 -2.191 29.58 195.8
13 18.19 81.9 15.6738 56.738 9.8166 -1.834 29.75 197.5
14 18.2 82 14.229 42.29 9.7119 -2.881 29.55 195.5
15 18.04 80.4 14.0415 40.415 9.7211 -2.789 29.67 196.7
16 18.12 81.2 14.1354 41.354 9.7628 -2.372 29.89 198.9
17 18.2 82 14.1477 41.477 9.8174 -1.826 30.01 200.1
18 18.29 82.9 14.2233 42.233 9.8553 -1.447 30.13 201.3
19 18.36 83.6 14.3425
TABLE: 43.425
NO: 4.1.3 9.831 -1.69 30.08 200.8
20 18.32 83.2 14.2475 42.475 9.813 -1.87 30 200
21 18.32 AVERAGE
83.2 RETURN
14.2604 – MARCH,- 2010
42.604 - - -
Total 377.71 1677.1 315.4036 1054.036 194.0121 -59.879 588.26 3882.6
Fund Average Fund TABLE: NO:

Average 4
Fund Average Fund Average
CALCULATION
RELIA 0.798619 OF AVERAGE
KOT RETURN
0.501922 FOR
LIC THE MONTH
-0.02994 OF APRIL,
SBI 2010
1.9413
NCE AK
RETURN = (NAV – 10 / 10) * 100

1 18.49 84.9 14.3346 43.346 9.8922 -1.078 30.65 206.5
2 18.78 87.8 14.5451 45.451 10.0312 0.312 30.69 206.9
3 18.79 87.9 14.4981 44.981 10.0588 0.588 30.79 207.9
4 18.9 89 14.5677 45.677 10.0998 0.998 30.47 204.7
5 18.64 86.4 14.4273 44.273 9.9773 -0.227 30.79 207.9
6 18.85 88.5 14.5756 45.756 10.0886 0.886 30.67 206.7
7 18.79 87.9 14.584 45.84 10.0298 0.298 30.59 205.9
8 18.71 87.1 14.5505 45.505 9.9901 -0.099 30.41 204.1
9 18.58 85.8 14.4541 44.541 9.8892 -1.108 30.25 202.5
10 18.52 85.2 14.3557 43.557 9.8313 -1.687 29.98 199.8
11 18.32 83.2 14.1801 41.801 9.7373 -2.627 30.21 202.1
12 18.44 84.4 14.2945 42.945 9.8032 -1.968 30.3 203
13 18.51 85.1 14.3146 43.146 9.841 -1.59 30.37 203.7
14 18.53 85.3 14.3479 43.479 9.8895 -1.105 30.52 205.2
15 18.62 86.2 14.441 44.41 9.9611 -0.389 30.68 206.8
16 18.83 88.3 14.5052 45.052 9.9905 -0.095 30.58 205.8
17 18.78 87.8 14.5092 45.092 9.9662 -0.338 30.19 201.9
18 18.52 85.2 14.2654 42.654 9.7841 -2.159 30.23 202.3
19 18.66 86.6 TABLE: NO:
14.4043 44.0434.1.4 9.8461 -1.539 30.49 204.9
20 18.73 87.3
AVERAGE14.5078 45.078
RETURN 9.9168
– APRIL, 2010 -0.832
Total 372.99 1729.9 288.6627 886.627 198.6241 -13.759 578.86 3888.6

Returns Returns
TABLE: NO: 5 Returns Returns
RELI 0.86495 KOT 0.443314 LIC -0.00688 SBI 2.046632
CALCULATION OF AVERAGE
ANC AK RETURN FOR THE MONTH OF JANUARY, 2010
E
EQUITY LINKED SAVING SCHEME (GROWTH OPTION)
RETURN = (NAV – 10 / 10) * 100

1 34.53 245.3 36.0317 260.317 25.322 153.22 39.04 290.4
2 34.78 247.8 36.5724 265.724 25.5998 155.998 39.25 292.5
3 34.9 249 36.7913 267.913 25.6499 156.499 39.38 293.8
4 34.71 247.1 36.916 269.16 25.5991 155.991 39.18 291.8
5 34.61 246.1 36.9318 269.318 25.6052 156.052 39.26 292.6
6 34.74 247.4 37.2442 272.442 25.6997 156.997 39.27 292.7
7 34.48 244.8 36.811 268.11 25.3654 153.654 39.13 291.3
8 34.54 245.4 36.856 268.56 25.496 154.96 39.16 291.6
9 34.69 246.9 37.1024 271.024 25.628 156.28 39.32 293.2
10 34.69 246.9 36.9753 269.753 25.5708 155.708 39.23 292.3
11 34.87 248.7 37.0175 270.175 25.6552 156.552 39.4 294
12 34.54 245.4 36.4847 264.847 25.4274 154.274 39.06 290.6
13 34.46 244.6 36.2472 262.472 25.3155 153.155 38.99 289.9
14 33.77 237.7 35.1704 251.704 24.6737 146.737 38.19 281.9
15 33.38 233.8 34.7359 247.359 24.4666 144.666 37.84 278.4
16 33.08 230.8 34.3977 243.977 24.3153 143.153 37.67 276.7
17 32.13 221.3 33.4912 234.912 23.6163 136.163 36.56 265.6
18 32.38 223.8 33.4868 234.868 23.6833 136.833 36.63 266.3
TABLE: NO: 4.1.5
19 32.58 225.8 33.4983 234.983 23.881 138.81 36.7 267
Total 647.86 4578.6
AVERAGE 682.7618
RETURN4927.618 476.5702
– JANUARY, 2010 2865.702 733.26 5432.6

RELIA 2.409789 KOT 2.593483 LIC 1.508264 SBI 2.859263
NCE AK TABLE: NO: 6
CALCULATION OF AVERAGE RETURN FOR THE MONTH OF FEBRUARY, 2010

RETURN = (NAV – 10 / 10) * 100

1 32.69 226.9 33.9181 239.181 23.9893 139.893 37.11 271.1
2 32.38 223.8 33.3697 233.697 23.6466 136.466 36.74 267.4
3 33.01 230.1 34.1456 241.456 24.0678 140.678 37.28 272.8
4 32.52 225.2 33.433 234.33 23.6336 136.336 36.88 268.8
5 31.73 217.3 32.6511 226.511 23.0289 130.289 36.26 262.6
6 31.88 218.8 32.9922 229.922 23.2604 132.604 36.62 266.2
7 32.17 221.7 33.2429 232.429 23.3369 133.369 36.89 268.9
8 32.09 220.9 33.0751 230.751 23.1706 131.706 36.71 267.1
9 32.48 224.8 33.5057 235.057 23.4689 134.689 36.98 269.8
10 32.33 223.3 33.0978 230.978 23.2693 132.693 36.78 267.8
11 32.5 225 33.3541 233.541 23.528 135.28 36.96 269.6
12 32.8 228 33.6823 236.823 23.7588 137.588 37.3 273
13 32.63 226.3 33.4571 234.571 23.6051 136.051 37.1 271
14 32.39 223.9 32.9925 229.925 23.3419 133.419 36.79 267.9
15 32.4 224 32.9797 229.797 23.3092 133.092 36.81 268.1
16 32.4 224 32.9628 229.628 23.3275 133.275 36.82 268.2
17 32.29 222.9 33.0043 230.043 23.2924 132.924 36.73 267.3
18 32.2 222 32.8727 228.727 23.2709 132.709 36.75 267.5
19 32.52 225.2 33.2039
TABLE:232.039
NO: 4.1.6 23.6036 136.036 37.2 272
Total 615.41 4254.1 631.9406 4419.406 445.9097 2559.097 700.71 5107.1
AVERAGE RETURN – FEBRUARY, 2010

Returns TABLE:
Returns NO: 7 Returns Returns
RELIA 2.239 KOTA 2.326003 LIC 1.346893 SBI 2.687947
NCECALCULATION OFKAVERAGE RETURN FOR THE MONTH MARCH, 2010
RETURN = (NAV – 10 / 10) * 100

1 33.05 230.5 33.8112 238.112 23.976 139.76 37.78 277.8
2 33.44 234.4 34.3245 243.245 24.3277 143.277 38.26 282.6
3 33.47 234.7 34.3881 243.881 24.3526 143.526 38.15 281.5
4 33.61 236.1 34.4481 244.481 24.5194 145.194 38.35 283.5
5 33.83 238.3 34.7921 247.921 24.6081 146.081 38.67 286.7
6 33.62 236.2 34.5445 245.445 24.4271 144.271 38.6 286
7 33.63 236.3 34.4372 244.372 24.4702 144.702 38.56 285.6
8 33.7 237 34.53 245.3 24.5012 145.012 38.7 287
9 33.71 237.1 34.4725 244.725 24.4501 144.501 38.78 287.8
10 33.58 235.8 34.3607 243.607 24.3632 143.632 38.62 286.2
11 33.99 239.9 34.7574 247.574 24.7696 147.696 39.12 291.2
12 34.15 241.5 34.7855 247.855 24.8227 148.227 39.2 292
13 34.37 243.7 34.8385 248.385 24.9132 149.132 39.43 294.3
14 34.4 244 34.961 249.61 24.6474 146.474 39.17 291.7
15 34.1 241 34.4911 244.911 24.6709 146.709 39.32 293.2
16 34.25 242.5 34.7219 247.219 24.7766 147.766 39.61 296.1
17 34.41 244.1 34.7518 247.518 24.9151 149.151 39.77 297.7
18 34.56 245.6 34.9376 249.376 25.0114 150.114 39.94 299.4
19 34.71 247.1 35.2304 252.304 24.9497 149.497 39.87 298.7
20 34.63 246.3 34.997 249.97 24.9041 149.041 39.77 297.7
21 34.62 246.2 TABLE: 250.288
35.0288 NO: 4.1.7 - - - -
Total 713.83 5038.3 727.6099 5176.099 492.3763 2923.763 779.67 5796.7
AVERAGE RETURN – MARCH, 2010
Fund Average Fund Average Fund

TABLE: NO: 8 Average Fund Average
2.39919
RELIA CALCULATIONKOTA 2.464809
OF AVERAGE LIC
RETURN 1.461882
FOR THE 2.89835
SBI 2010
MONTH APRIL,
NCE K
RETURN = (NAV – 10 / 10) * 100

1 34.94 249.4 35.2109 252.109 25.1051 151.051 40.63 306.3
2 35.49 254.9 35.7284 257.284 25.4577 154.577 40.67 306.7
3 35.52 255.2 35.6128 256.128 25.5278 155.278 40.82 308.2
4 35.72 257.2 35.7837 257.837 25.6319 156.319 40.38 303.8
5 35.23 252.3 35.4388 254.388 25.321 153.21 40.81 308.1
6 35.62 256.2 35.8032 258.032 25.6036 156.036 40.65 306.5
7 35.51 255.1 35.8238 258.238 25.4543 154.543 40.55 305.5
8 35.35 253.5 35.7415 257.415 25.3535 153.535 40.31 303.1
9 35.11 251.1 35.5047 255.047 25.0976 150.976 40.1 301
10 35 250 35.2629 252.629 24.9504 149.504 39.74 297.4
11 34.62 246.2 34.8318 248.318 24.7119 147.119 40.04 300.4
12 34.85 248.5 35.1127 251.127 24.8792 148.792 40.16 301.6
13 34.97 249.7 35.1618 251.618 24.9752 149.752 40.25 302.5
14 35.02 250.2 35.2437 252.437 25.0983 150.983 40.45 304.5
15 35.2 252 35.4724 254.724 25.2798 152.798 40.66 306.6
16 35.58 255.8 35.63 256.3 25.3544 153.544 40.53 305.3
17 35.49 254.9 35.6398 256.398 25.2928 152.928 40.02 300.2
18 35 250 35.0411 250.411 24.8308 148.308 40.07 300.7
19 35.26 252.6 35.3822 253.822 24.9881 149.881 40.41 304.1
TABLE: NO: 4.1.8
20 35.4 254 35.6365 256.365 25.1675 151.675 - -
Total 704.88 5048.8 709.0627
AVERAGE 5090.627
RETURN 504.0809
– APRIL, 2010 3040.809 767.25 5772.5

TABLE: NO: 9
NCE K
BALANCED SCHEME (DIVIDEND OPTION)
RETURN = (NAV – 10 / 10) * 100

1 16.52 65.2 16.5731 65.731 11.5999 15.999 25.73 157.3
2 16.61 66.1 16.7515 67.515 11.7291 17.291 25.88 158.8
3 16.64 66.4 16.7648 67.648 11.7512 17.512 26.01 160.1
4 16.57 65.7 16.7381 67.381 11.755 17.55 25.98 159.8
5 16.53 65.3 16.6448 66.448 11.7537 17.537 25.92 159.2
6 16.58 65.8 16.6531 66.531 11.8353 18.353 26.07 160.7
7 16.51 65.1 16.4732 64.732 11.6565 16.565 25.91 159.1
8 16.53 65.3 16.4774 64.774 11.7742 17.742 26 160
9 16.58 65.8 16.4492 64.492 11.7784 17.784 26.11 161.1
10 16.58 65.8 16.4346 64.346 11.8843 18.843 26.12 161.2
11 16.63 66.3 16.5528 65.528 11.851 18.51 26.21 162.1
12 16.55 65.5 16.5108 65.108 11.7545 17.545 26.05 160.5
13 16.54 65.4 16.5371 65.371 11.7316 17.316 26.07 160.7
14 16.29 62.9 16.2374 62.374 11.5496 15.496 25.62 156.2
15 16.19 61.9 16.0736 60.736 11.41 14.1 25.46 154.6
16 16.11 61.1 15.9083 59.083 11.371 13.71 25.33 153.3
17 15.77 57.7 15.6151 56.151 11.0675 10.675 24.79 147.9
18 15.82 58.2 15.711 57.11 11.0459 10.459 24.87 148.7
TABLE: NO: 4.1.9
19 15.87 58.7 15.6837 56.837 11.0486 10.486 24.97 149.7
Total 311.42 1214.2
AVERAGE310.7896
RETURN 1207.896 220.3473
– JANUARY, 2010 303.473 489.1 2991

NCE K TABLE: NO: 10
CALCULATION OF AVERAGE RETURN FOR THE MONTH FEBRUARY, 2010

RETURN = (NAV – 10 / 10) * 100

1 15.92 59.2 15.7342 57.342 11.0969 10.969 25.12 151.2
2 15.82 58.2 15.5626 55.626 10.9829 9.829 24.89 148.9
3 16.01 60.1 15.81 58.1 11.0791 10.791 25.16 151.6
4 15.86 58.6 15.6117 56.117 10.867 8.67 24.83 148.3
5 15.63 56.3 15.4208 54.208 10.6915 6.915 24.37 143.7
6 15.68 56.8 15.5126 55.126 10.8162 8.162 24.58 145.8
7 15.75 57.5 15.5953 55.953 10.8658 8.658 24.69 146.9
8 15.72 57.2 15.6262 56.262 10.8491 8.491 24.59 145.9
9 15.84 58.4 15.6984 56.984 10.897 8.97 24.7 147
10 15.79 57.9 15.5108 55.108 10.7582 7.582 24.54 145.4
11 15.87 58.7 15.5674 55.674 10.8769 8.769 24.68 146.8
12 15.98 59.8 15.736 57.36 10.9596 9.596 24.86 148.6
13 15.92 59.2 15.638 56.38 10.9488 9.488 24.8 148
14 15.85 58.5 15.489 54.89 10.8499 8.499 24.63 146.3
15 15.85 58.5 15.4453 54.453 10.8582 8.582 24.66 146.6
16 15.85 58.5 15.4007 54.007 10.8261 8.261 24.62 146.2
17 15.82 58.2 15.3394 53.394 10.8115 8.115 24.53 145.3
18 15.81 58.1 15.2364 52.364 10.7957 7.957 24.54 145.4
TABLE: NO: 4.1.10
19 15.91 59.1 15.4625 54.625 10.9173 9.173 24.7 147
Total 300.88 AVERAGE
1108.8 295.3973
RETURN1053.973 206.7477
– FEBRUARY, 2010167.477 469.49 2794.9

NCE K
TABLE: NO: 11
CALCULATION OF AVERAGE RETURN FOR THE MONTH MARCH, 2010
RETURN = (NAV – 10 / 10) * 100

1 16.09 60.9 15.6719 56.719 11.0813 10.813 25.02 150.2
2 16.22 62.2 15.8356 58.356 11.1428 11.428 25.27 152.7
3 16.21 62.1 15.9876 59.876 11.1695 11.695 25.29 152.9
4 16.25 62.5 16.0822 60.822 11.2001 12.001 25.35 153.5
5 16.32 63.2 16.1149 61.149 11.2119 12.119 25.52 155.2
6 16.28 62.8 15.9972 59.972 11.119 11.19 25.42 154.2
7 16.27 62.7 16.0021 60.021 11.1494 11.494 25.42 154.2
8 16.29 62.9 16.0538 60.538 11.1662 11.662 25.48 154.8
9 16.3 63 16.04 60.4 11.1494 11.494 25.45 154.5
10 16.27 62.7 15.9152 59.152 11.1345 11.345 25.41 154.1
11 16.38 63.8 16.0027 60.027 11.1998 11.998 25.72 157.2
12 16.42 64.2 16.0702 60.702 11.2384 12.384 25.77 157.7
13 16.46 64.6 16.1569 61.569 11.3231 13.231 25.86 158.6
14 16.48 64.8 15.1733 51.733 11.285 12.85 25.72 157.2
15 16.4 64 15.0892 50.892 11.2473 12.473 25.77 157.7
16 16.45 64.5 15.0648 50.648 11.318 13.18 25.86 158.6
17 16.47 64.7 15.1282 51.282 11.3502 13.502 25.93 159.3
18 16.51 65.1 15.2854 52.854 11.4098 14.098 25.98 159.8
19 16.56 65.6 15.2708 52.708 11.3986 13.986 26.02 160.2
20 16.51 65.1 15.2763 52.763 11.4209 14.209 26 160
21 16.53 65.3 15.3273 53.273 - - - -
Total 343.67 1336.7 329.5456 1195.456
TABLE: NO: 4.1.11 224.7152 247.152 512.26 3122.6

TABLE: NO: 12
NCE K
CALCULATION OF AVERAGE RETURN FOR THE MONTH APRIL, 2010
RETURN = (NAV – 10 / 10) * 100

1 16.6 66 15.336 53.36 11.4002 14.002 26.42 164.2
2 16.76 67.6 15.7216 57.216 11.4928 14.928 26.44 164.4
3 16.79 67.9 15.778 57.78 11.494 14.94 26.51 165.1
4 16.83 68.3 15.9585 59.585 11.5578 15.578 26.33 163.3
5 16.7 67 15.837 58.37 11.4577 14.577 26.52 165.2
6 16.75 67.5 15.9183 59.183 11.4745 14.745 26.46 164.6
7 16.69 66.9 15.8582 58.582 11.4306 14.306 26.43 164.3
8 16.64 66.4 15.8347 58.347 11.3742 13.742 26.33 163.3
9 16.57 65.7 15.7734 57.734 11.3323 13.323 26.28 162.8
10 16.53 65.3 15.664 56.64 11.2924 12.924 26.04 160.4
11 16.41 64.1 15.5367 55.367 11.2601 12.601 26.24 162.4
12 16.47 64.7 15.6971 56.971 11.3251 13.251 26.37 163.7
13 16.48 64.8 15.8343 58.343 11.423 14.23 26.45 164.5
14 16.52 65.2 15.8398 58.398 11.4437 14.437 26.57 165.7
15 16.6 66 15.8359 58.359 11.484 14.84 26.63 166.3
16 16.67 66.7 15.9505 59.505 11.5311 15.311 26.57 165.7
17 16.65 66.5 15.9319 59.319 11.5282 15.282 26.27 162.7
18 16.53 65.3 15.826 58.26 11.408 14.08 26.39 163.9
19 16.61 66.1 15.9395 59.395 11.4495 14.495 26.48 164.8
20 16.64 66.4 16.1185 61.185 11.4662 14.662 - -
Total 332.44 1324.4 316.1899 1161.899 228.6254 286.254 501.73 3117.3
TABLE: NO: 4.1.12
AVERAGE RETURN – APRIL, 2010

NCE K
TABLE: NO: 13
BALANCED SCHEME (GROWTH OPTION)
RETURN = (NAV – 10 / 10) * 100

1 23.62 136.2 21.8008 118.008 54.8816 448.816 47.95 379.5
2 23.75 137.5 22.0354 120.354 55.493 454.93 48.23 382.3
3 23.79 137.9 22.0529 120.529 55.5975 455.975 48.48 384.8
4 23.69 136.9 22.0178 120.178 55.6154 456.154 48.42 384.2
5 23.64 136.4 21.895 118.95 55.6092 456.092 48.31 383.1
6 23.71 137.1 21.906 119.06 55.9954 459.954 48.59 385.9
7 23.6 136 21.6693 116.693 55.1494 451.494 48.29 382.9
8 23.63 136.3 21.6748 116.748 55.7063 457.063 48.45 384.5
9 23.71 137.1 21.6378 116.378 55.7259 457.259 48.66 386.6
10 23.71 137.1 21.6185 116.185 56.2273 462.273 48.68 386.8
11 23.78 137.8 21.7739 117.739 56.0696 460.696 48.85 388.5
12 23.66 136.6 21.7188 117.188 55.6131 456.131 48.54 385.4
13 23.66 136.6 21.7533 117.533 55.5047 455.047 48.59 385.9
14 23.29 132.9 21.3591 113.591 54.6434 446.434 47.75 377.5
15 23.15 131.5 21.1437 111.437 53.983 439.83 47.45 374.5
16 23.03 130.3 20.9262 109.262 53.7986 437.986 47.2 372
17 22.55 125.5 20.5405 105.405 52.3627 423.627 46.2 362
18 22.62 126.2 20.6667 106.667 52.2605 422.605 46.35 363.5
19 22.7 127 20.6307 106.307 52.2734 422.734 46.53 365.3
Total 445.29 2552.9 408.8212 2188.212 1042.51 8525.1 911.52 7215.2
TABLE: NO: 4.1.13
AVERAGE RETURN – JANUARY, 2010

NCE K
TABLE: NO: 14
CALCULATION OF AVERAGE RETURN FOR THE MONTH FEBRUARY, 2010
RETURN = (NAV – 10 / 10) * 100

1 22.76 127.6 20.6972 106.972 52.5015 425.015 46.82 368.2
2 22.62 126.2 20.4715 104.715 51.9625 419.625 46.38 363.8
3 22.89 128.9 20.7969 107.969 52.4174 424.174 46.89 368.9
4 22.68 126.8 20.5361 105.361 51.4138 414.138 46.27 362.7
5 22.35 123.5 20.2849 102.849 50.5838 405.838 45.42 354.2
6 22.43 124.3 20.4057 104.057 51.1739 411.739 45.81 358.1
7 22.52 125.2 20.5144 105.144 51.4081 414.081 46.02 360.2
8 22.48 124.8 20.555 105.55 51.3295 413.295 45.82 358.2
9 22.65 126.5 20.6501 106.501 51.5557 415.557 46.03 360.3
10 22.57 125.7 20.4033 104.033 50.8994 408.994 45.74 357.4
11 22.69 126.9 20.4777 104.777 51.461 414.61 45.99 359.9
12 22.85 128.5 20.6995 106.995 51.852 418.52 46.33 363.3
13 22.76 127.6 20.5706 105.706 51.801 418.01 46.21 362.1
14 22.66 126.6 20.3746 103.746 51.3333 413.333 45.9 359
15 22.66 126.6 20.3171 103.171 51.3724 413.724 45.95 359.5
16 22.66 126.6 20.2585 102.585 51.2206 412.206 45.87 358.7
17 22.62 126.2 20.1778 101.778 51.1515 411.515 45.72 357.2
18 22.61 126.1 20.0423 100.423 51.0768 410.768 45.73 357.3
19 22.75 127.5 20.3397 103.397 51.6518 416.518 46.03 360.3
Total 430.21 2402.1 388.5729 1985.729 978.166 7881.66 874.93 6849.3
TABLE: NO: 4.1.14
AVERAGE RETURN – FEBRUARY, 2010

RELI 1.264263 KOT 1.045121 LIC 4.148242 SBI 3.604895
TABLE: NO: 15
CALCULATION OF AVERAGE RETURN FOR THE MONTH MARCH, 2010
RETURN = (NAV – 10 / 10) * 100

1 23.01 130.1 20.6152 106.152 52.4281 424.281 46.63 366.3
2 23.2 132 20.8305 108.305 52.719 427.19 47.09 370.9
3 23.18 131.8 21.0305 110.305 52.8452 428.452 47.13 371.3
4 23.23 132.3 21.1549 111.549 52.9898 429.898 47.24 372.4
5 23.33 133.3 21.1979 111.979 53.0459 430.459 47.56 375.6
6 23.27 132.7 21.0431 110.431 52.6065 426.065 47.37 373.7
7 23.27 132.7 21.0496 110.496 52.7501 427.501 47.38 373.8
8 23.3 133 21.1176 111.176 52.8297 428.297 47.48 374.8
9 23.31 133.1 21.0994 110.994 52.7499 427.499 47.42 374.2
10 23.26 132.6 20.9353 109.353 52.6797 426.797 47.35 373.5
11 23.41 134.1 21.0504 110.504 52.9886 429.886 47.93 379.3
12 23.48 134.8 21.1391 111.391 53.1712 431.712 48.03 380.3
13 23.53 135.3 21.2532 112.532 53.572 435.72 48.2 382
14 23.56 135.6 21.2747 112.747 53.3915 433.915 47.93 379.3
15 23.44 134.4 21.1567 111.567 53.2131 432.131 48.03 380.3
16 23.52 135.2 21.1225 111.225 53.5477 435.477 48.19 381.9
17 23.55 135.5 21.2115 112.115 53.7001 437.001 48.33 383.3
18 23.61 136.1 21.4319 114.319 53.9823 439.823 48.42 384.2
19 23.68 136.8 21.4114 114.114 53.9292 439.292 48.5 385
20 23.61 136.1 21.4192 114.192 54.0346 440.346 48.46 384.6
21 23.63 136.3 21.4906 114.906 - - - -
Total 491.38 2813.8 444.0352 2340.352 1063.174 8631.742 954.67 7546.7
TABLE: NO: 4.1.15

NCE K
TABLE: NO: 16
CALCULATION OF AVERAGE RETURN FOR THE MONTH APRIL, 2010
RETURN = (NAV – 10 / 10) * 100

1 23.73 137.3 21.5028 115.028 53.9368 439.368 49.23 392.3
2 23.97 139.7 22.0435 120.435 54.3749 443.749 49.28 392.8
3 24.01 140.1 22.1225 121.225 54.3806 443.806 49.41 394.1
4 24.07 140.7 22.3757 123.757 54.6823 446.823 49.07 390.7
5 23.87 138.7 22.2052 122.052 54.2088 442.088 49.42 394.2
6 23.94 139.4 22.3193 123.193 54.2882 442.882 49.32 393.2
7 23.87 138.7 22.235 122.35 54.0803 440.803 49.25 392.5
8 23.79 137.9 22.2021 122.021 53.8137 438.137 49.06 390.6
9 23.7 137 22.1161 121.161 53.6152 436.152 48.98 389.8
10 23.64 136.4 21.9628 119.628 53.4269 434.269 48.52 385.2
11 23.47 134.7 21.7842 117.842 53.274 432.74 48.9 389
12 23.55 135.5 22.0091 120.091 53.5816 435.816 49.14 391.4
13 23.56 135.6 22.2015 122.015 54.0444 440.444 49.3 393
14 23.63 136.3 22.2092 122.092 54.1424 441.424 49.51 395.1
15 23.73 137.3 22.2038 122.038 54.333 443.33 49.62 396.2
16 23.83 138.3 22.3645 123.645 54.556 445.56 49.51 395.1
17 23.81 138.1 22.3383 123.383 54.5421 445.421 48.95 389.5
18 23.64 136.4 22.1898 121.898 53.9736 439.736 49.18 391.8
19 23.75 137.5 22.349 123.49 54.1699 441.699 49.34 393.4
20 23.8 138 22.5999 125.999 54.2489 442.489 - -
Total 475.36 2753.6 443.3343 2433.343 1081.674 8816.736 934.99 7449.9
TABLE: NO: 4.1.16
AVERAGE RETURN- APRIL, 2010

RELIA 1.3768 KOT 1.216672 LIC 4.408368 SBI 3.921
NCE AK
TABLE NO: 17
EQUITY LINKED SAVING SCHEME – DIVIDEND OPTION
JANUARY 2010 – APRIL 2010
CALCULATION OF AVERAGE RETURN
Average Return = Total Return / Number of Months
TABLE: NO: 4.2.1
Company Name RELIANC KOTAK LIC SBI

Month E (R) (R) (R) (R)
January 0.804158 0.616715 -0.01166 1.911105
February 0.713947 0.496376 -0.07525 1.782526
March 0.798619 0.501922 -0.02994 1.9413
April 0.86495 0.443314 -0.00688 2.046632
Total 3.181674 2.058327 -0.12373 7.681563
Average Return 0.795419 0.514582 -0.03093 1.920391
BAR CHART FOR RETURNS
FIGURE NO. 4.2.1.1

INTERPRETATION
From this analysis, SBI Magnum Equity Scheme Performance is best out of the three Schemes of
Mutual Fund companies in case of Dividend Option, ranks first with the highest in all four
months and with the highest average return of 1.920391.
CALCULATION OF SHARPE INDEX RATIO
Sharpe Index Ratio = Rp – Rf / σ

Standard Deviation =√ (R – Average Return) ^2
TABLE: NO: 4.2.2
Particulars RELIANC KOTAK LIC SBI

Average Return E 0.795419 0.514582 -0.03093 1.920391
Standard Deviation 1.193128 0.771873 0.046399 2.880586
Risk Free Rate 0.06 0.06 0.07 0.0425
Sharpe Index Ratio 0.616379 0.588934 -2.17527 0.651913
Rank 2 3 4 1
INTERPRETATION
From this analysis, SBI Magnum Equity Scheme Performance is better than the other Mutual
Fund companies in case of dividend option. SBI Magnum Equity Fund ranks first with the
highest Sharpe Index ratio of 0.651913, with the highest average return of 1.920391 and with the
highest Standard Deviation of 2.880586 followed by RELIANCE, with the Sharpe Index Ratio of
0.616379, KOTAK with the Sharpe Index Ratio of 0.588934 and LIC with the Sharpe Index
Ratio -2.17527. This shows that Higher the risk higher the return.
CALCULATION OF TREYNOR RATIO
Treynor ratio= Rp-Rf

B
Average Return on portfolio=Rp

The Systematic Risk measured by Beta (β).
If β = 1 Indicates securities is having average Rate of Systematic Risk
β > 1 Securities Return fluctuate more than the Market Return.
β < 1 Securities Returns are less sensitive to the changes in the Market Returns.
TABLE: NO: 4.2.3

Average Return E 0.795419 0.514582 -0.03093 1.920391
Risk Free Rate 0.06 0.06 0.07 0.0425
Sharpe Index Ratio 0.616379 0.588934 -2.17527 0.651913
Rank 2 3 4 1
INTERPRETATION:
From the above analysis, SBI Magnum Equity Scheme Performance is better than other Mutual
Fund Companies in case Dividend option. SBI ranks first with highest Treynor ratio of 1.93597
followed by RELIANCE, with the Treynor Ratio of 0.826313, KOTAK with the Treynor Ratio of
0.488798 and LIC with the Treynor Ratio of -0.10299. This highest Treynor Ratio indicates the
superior risk – adjusted performance of the fund.
TABLE NO: 18
EQUITY LINKED SAVING SCHEME – GROWTH OPTION

TABLE NO: 4.2.4

January 2.409789 2.593483 1.508264 2.859263
February 2.239 2.326003 1.346893 2.687947
March
INTERPRETATION 2.39919 2.464809 1.461882 2.89835
April 2.5244 2.545314 1.520405 3.038158
Total 9.572379 9.929609 5.837444 11.48372
Average Return 2.393095 2.482402 1.459361 2.87093
From this analysis, SBI Magnum Equity Scheme Performance is best out of the three Schemes
of Mutual Fund companies in case of Growth Option, ranks first with the highest in all four
SHARPE INDEX RATIO
Sharpe Index Ratio = Rp – Rf

σ
Standard deviation =√ ( R – Average Return)^2/n
TABLE: NO: 4.2.5

Average Return E 2.393095 2.482402 1.459361 2.87093
Risk Free Rate 0.06 0.06 0.07 0.0425
Sharpe Index Ratio 0.649952 0.650553 0.634689 0.656798
Rank 3 2 4 1
INTERPRETATION
From this analysis, SBI Magnum Equity Scheme Performance is better than the other Mutual
Fund companies in case of growth option. SBI Magnum Equity Fund ranks first with the highest
Sharpe Index ratio of 0.656798, with the average return of 2.87093 and with the highest Standard
Deviation of 4.306394, followed by KOTAK, with the Sharpe Index Ratio of 0.650553,
RELIANCE with the Sharpe Index Ratio of 0.649952 and LIC with the Sharpe Index Ratio of
0.634689. Higher the magnitude of the Sharpe ratio, higher is the performance rating of the
scheme and higher the Standard deviation, higher the element of risk in a scheme. This shows
that Higher the risk higher the return.

B
TABLE: NO: 4.2.6

Rp XE
2.393095 2.482402 1.459361 2.87093
Risk Free Rate 0.06 0.06 0.07 0.0425
Beta 0.89 0.93 0.98 0.97
Treynor Ratio 2.621455 2.604733 1.417715 2.915907
Rank 2 3 4 1
INTERPRETATION
From the above analysis SBI Magnum Equity Scheme performance is better than other Mutual
Fund Companies in case of Growth Option. SBI ranks first with the highest Treynor ratio of
2.915907 and with the highest beta of 0.97 followed by, RELIANCE with the Treynor Ratio of
2.621455, KOTAK with the treynor ratio 2.604733 and LIC with the treynor ratio of 1.417715.
This highest treynor ratio is an indicator of favorable performance.
TABLE NO: 19
BALANCED SCHEME – DIVIDEND OPTION
TABLE: NO: 4.2.7

INTERPRETATIONJanuary 0.639053 0.635735 0.159723 1.574211
February 0.583579 0.554723 0.088146 1.471
March
From this analysis, 0.636524Scheme
SBI Magnum Balanced 0.569265 0.123576
Performance is best1.5613
out of the three Schemes
April 0.6622 0.58095 0.143127 1.640684
Total 2.521356 2.340673 0.514572 6.247195
Average Return 0.630339 0.585168 0.128643 1.561799
of Mutual Fund companies in case of Dividend Option, ranks first with the highest in all four
SHARPE INDEX RATIO

Standard Deviation = √ ( R – Average Return)^2
TABLE: NO: 4.2.8

Average Return E 0.630339 0.585168 0.128643 1.561799
Risk Free Rate 0.06 0.06 0.07 0.0425
INTERPRETATION
Sharpe Index Ratio 0.603209 0.59831 0.303906 0.648525
Rank 2 3 4 1
From the above analysis, SBI Magnum Balanced Scheme, Performance is better than the other
Mutual Fund companies in case of dividend option. SBI Magnum Balanced Fund ranks first with
the highest Sharpe Index ratio of 0.648525, with the average return of 1.561799 and with the
Standard Deviation of 2.342698 followed by RELIANCE, with the Sharpe Index Ratio of
0.603209, KOTAK with the Sharpe Index Ratio of 0.59831 and LIC with the Sharpe Index Ratio
of 0.303906. Though the Standard Deviation for SBI Magnum Balanced Fund is less compared to
RELIANCE, the Sharpe Index ratio is higher; this shows the higher performance rating of the
scheme.

B
TABLE: NO: 4.2.9

Rp E0.630339 0.585168 0.128643 1.561799
Risk Free Rate 0.06 0.06 0.07 0.0425
Beta 1.09 0 0.86 1.14
Treynor Ratio 0.523247 0 0.06819 1.332718
Rank 2 4 3 1
INTERPRETATION
From the above analysis, SBI Magnum Balanced Scheme performance is better than other
Mutual Fund Companies in case of Dividend Option. SBI ranks first with the highest Treynor
ratio of 1.332718 followed by, RELIANCE with the Treynor Ratio of 0.523247, LIC with the
Treynor Ratio of 0.06819 and KOTAK with the Treynor Ratio of 0. This highest Treynor ratio is
an indicator of highest performance of the fund.
TABLE NO: 20
BALANCED SCHEME – GROWTH OPTION
TABLE: NO: 4.2.10

January 1.343632 1.151691 4.486895 3.797474
February 1.264263 1.045121 4.148242 3.604895
INTERPRETATION March 1.339905 1.114453 4.315871 3.77335
April 1.3768 1.216672 4.408368 3.921
Total
From this analysis, 5.3246 Performance
LICMF Balanced Scheme 4.527937 is 17.35938 15.09672
best out of the three Schemes of
Average Return 1.33115 1.131984 4.339844 3.77418
Mutual Fund companies in case of Growth Option, ranks first with the highest in all four months
and with the highest average return of 4.339844.
SHARPE INDEX RATIO

Standard Deviation = √ ( R – Average Return)^2/n
TABLE NO. 4.2.11

Average Return E 1.33115 1.131984 4.339844 3.77418
Risk Free Return 0.06 0.06 0.07 0.0425
Sharpe Index Ratio
INTERPRETATION: 0.636617 0.63133 0.655914 0.65916
Rank 3 4 2 1
From the above analysis, SBI Magnum Balanced Scheme, performance is better than the other
Mutual Fund companies in case of growth option. SBI Magnum Balanced Fund ranks first with
the highest Sharpe Index ratio of 0.65916, with the average return of 3.77418, and with the
highest Standard Deviation of 5.66127 followed by LIC, with the Sharpe Index Ratio of
0.655914, RELIANCE with the Sharpe Index Ratio of 0.636617 and KOTAK with the Sharpe
Index Ratio of 0.63133. Higher the magnitude of the Sharpe ratio, higher is the performance
rating of the scheme and higher the Standard deviation, higher the element of risk in a scheme.
This shows that Higher the risk higher the return.

B
TABLE: NO: 4.2.12
Particulars RELIANCE KOTAK LIC SBI

Rp CE
1.33115 1.131984 4.33984 3.77418
Risk Free Rate 0.06 0.06 4
0.07 0.0425
Beta 1.09 0 0.86 1.14
Treynor Ratio 1.166193 0 4.96493 3.273404
Rank 3 4 51 2
INTERPRETATION
From the above analysis, LIC Balanced scheme performance is better than other Mutual Fund
Companies in case of Growth option. LIC ranks first with the highest Treynor ratio of 4.964935
followed by, SBI with the Treynor Ratio of 3.273404, RELIANCE with the Treynor Ratio of
1.166193 and KOTAK with the Treynor Ratio of 0. This highest Treynor Ratio is an indicator of
superior risk adjusted performance of the fund.
SUMMARY OF FINDINGS
In this project Tax Plans and Balanced Schemes are evaluated to know the state of affairs as it
existed during January, 2010 to April, 2010. This helps to know the performance of the schemes.
FROM EQUITY LINKED SAVING SCHEME (DIVIDEND OPTION)
1. Average Returns: SBI Equity Scheme performance is ranked as first with the highest average
Return of 1.920391
2. Sharpe Ratio: SBI Equity Scheme performance is ranked as first with the highest Sharpe
Index Ratio of 0.651913 and with the highest Standard Deviation of 2.880586 followed by
RELIANCE, KOTAK and LIC. This shows that higher the risk higher the return.
3. Treynor Ratio: SBI Equity Scheme performance is again ranked as first with the highest
Treynor Ratio of 1.93597, followed by RELIANCE, KOTAK and LIC.
PUBLIC SECTOR VS PRIVATE SECTOR
The public sector mutual fund company’s performance is better than the private sector mutual
fund companies in case of Average Returns and also in case of both Sharpe Ratio and Treynor
Ratio
FROM EQUITY LINKED SAVING SCHEME (GROWTH OPTION)
1. Average Returns: SBI Equity Scheme performance is ranked as first with the highest
Average Return of 2.87093
2. Sharpe Ratio: SBI Equity Scheme performance is ranked as first with the highest Sharpe
Index Ratio of 0.656798 and with the highest Standard Deviation of 4.306394, followed by
KOTAK, RELIANCE and LIC. This shows that higher the risk higher the return.
3. Treynor Ratio: SBI Equity Scheme performance is again ranked as first in case of Treynor
ratio with the highest Treynor Ratio of 2.915907, followed by RELIANCE, KOTAK and LIC.
PUBLIC SECTOR VS. PRIVATE SECTOR
The public sector mutual fund companies‟ performance is better than the private sector mutual
Ratio.
FROM BALANCED SCHEME (DIVIDEND OPTION)
1. Average Returns: SBI Balanced Scheme performance is ranked as first with the highest
Average Return of 1.561799
2. Sharpe Ratio: SBI Balanced Scheme performance is ranked as first with the highest Sharpe
Index Ratio of 0.648525 and with the highest Standard Deviation of 2.342698, followed by
RELIANCE, KOTAK and LIC.
3. Treynor Ratio: SBI Balanced Scheme performance is ranked as first with the highest Treynor
Ratio of 1.332718, followed by RELIANCE, KOTAK and JM. Higher the Treynor Ratio is an
indicator of favorable performance.
PUBLIC SECTOR VS. PRIVATE SECTOR
The public sector mutual fund companies‟ performance is better than the private sector mutual
Ratio.
FROM BALANCED SCHEME (GROWTH OPTION)
1. Average Returns: SBI Balanced Scheme performance is ranked as first with the
highestAverage Return of 3.77418
2. Sharpe Ratio: SBI Balanced Scheme performance is ranked as first with the highest Sharpe
Index Ratio of 0.65916, and with the highest Standard Deviation of 5.66127, followed by LIC,
Prudential RELIANCE and KOTAK. This shows that higher the risk, higher the return.
3. Treynor Ratio: LIC Balanced scheme performance is ranked as first with the highest Treynor
Ratio of 4.964935, followed by SBI, RELIANCE and KOTAK.
PUBLIC SECTOR VS. PRIVATE SECTOR:
The public sector mutual fund Companies outperforms the private sector mutual fund companies
in case of Average Returns and also in case of both Sharpe Ratio and Treynor Ratio.
SUGGESTIONS AND RECOMMENDATIONS
 As the investment on financial assets is comparatively low in India when compared to the
foreign investors, it is suggested that the Kotak Mahindra AMC Company, has to bring
innovative new products keeping in view of the investor’s expectations as the recession and the
doubled deep recession is expected all over the globe, with a view to encourage the new invetors.
 The Company should come forward to introduce more schemes at the right time for the benefit
of the fund house, investors, brokers, and the distributors.
 In general the private sector mutual fund companies outperforms the public sector mutual fund
companies, if the Kotak Mahindra AMC Company understands their Competitors and the market
they will have a hedge over their competitors in the future.
 A typical individual is not likely to have the knowledge, skills, inclination and time to keep
track of and understand the causes and implication of the price changes and trends. So, the Asset
management company’s should come forward to educate individuals about the benefits of mutual
funds.
CONCLUSION
Mutual Funds are the ideal investment vehicle for today’s complex and modern financial
scenario. The last few years have been very exciting for the mutual funds Industry in India. New
players have come in, while others have decided to close shop by either selling off or merging
with others. Product innovation is now passé with the game shifting to performance delivery in
fund management as well as service.
The public sector mutual fund company’s performance is better than the private sector mutual
fund companies in case of Equity Linked Savings Scheme. The public sector mutual fund
Companies outperforms the private sector mutual fund companies of two ratios viz., Sharpe Ratio
and Treynor Ratio in case Balanced Scheme. We can arrive at the conclusion that indeed existing
funds have surpassed newer ones by a mile and we would be much better off sticking to existing
funds with excellent track records than running after fancy terms, names & themes.
GLOSSARY
ADVISOR: The organization employed by a mutual fund to give professional advice on the
fund’s investments and to supervise the management of its assets.
ASKED OR OFFERING PRICE: The price at which a mutual fund shares can be purchased.
The asked or offering price means the current net asset value per share plus sales charge, if any.
For a no load fund, the asked price is the same as NAV.
ASSET ALLOCATION FUND: A fund that spreads its portfolio among a wide variety of
investments including domestic and foreign stocks and bonds, government securities gold bullion
and real estate stocks. This gives small investors far more diversification than they could get
allocating money on their own. Some of these funds keep the proportions allocated between
different sectors relatively constant, while others alter the mix as market conditions change.
AUTOMATIC REINVESTMENT : A service offered by most mutual funds where by income

dividence and capital gained distributions or automatically invested into the fund additional
shares and thus building up holdings through the effects of compounding.
BALANCED FUND: A mutual fund that maintains a balanced portfolio generally 60% bonds or
preferred stocks and 40% common stocks.
BID OR SELL PRICE: The price at which a mutual fund’s shares are redeemed (bought back)
by the fund. The bid or redemption price means the current net asset value per share, less any
redemption fee or back-end load.
BOND FUND: A mutual fund whose portfolio consists primarily of corporate or government
bonds. These funds generally emphasize income rather than growth.
BOND RATING: System of evaluating the probability of weather a bond issuer will default.
Various firms analyze the financial stability of both corporate and government issuers. Ratings
range from AAA to D (currently default). Bonds rated BBB or below are not considered to be of
investment grade. Mutual funds generally restrict their bond purchases to certain ratings.
CAPITAL APPRECIATION FUND : A mutual fund that seeks maximum appreciation through
the use of investment technique involving greater than ordinary risk, such as borrowing money in
order to provide leverage, short selling and high portfolio turnover.
CAPITAL GAINS DISTRIBUTIONS: Payments to mutual fund share holders of gains realized
on the sale of portfolio securities.
CAPITAL GROWTH: A rise in market value of mutual funds securities, reflected in its NAV
per share. This is a specific long term objective of many mutual funds.
CLOSED END INVESTMENT COMPANY: An investment company that offers a limited

number of shares. They are traded in the securities market through brokers. Price is determined
by supply and demand. Unlike open end Investments Company closed end funds do not redeem
their shares.
COMMERCIAL PAPER: Short term unsecured promissory notes with maturities no longer
than 270 days. They are issued by corporations to fund short term credit needs.
COMMON STOCK FUND: An open and investment company whose holdings consists mainly
of common stocks and usually emphasizes growth.
CONFIRM DATE: The date the fund processed your transaction, typically the same day or the
day after you trade.
CONTINGENT DEFERRED SALES CHARGE (CDSC): A fee imposed by certain funds on

shares redeem with in a specific period following their purchase. These charges are usually
assessed on a sliding scale, such as 4% to 1% of the amounts redeemed.
CUSTODIAN: The bank or trust company that maintains mutual funds assets including its
portfolio of securities or some record of them provide safe keeping of securities but has no role in
portfolio management
DAILY DIVIDEND FUND: This term applies to funds that declare their income dividends on
a daily basis and reinvest or distribute monthly.
DEFERRED COMPENSATION PLAN: A tax-sheltered investment plan to which employees

of state and local governments can defer a percentage of their salary.
DISTRIBUTOR: An individual or a corporation serving as principal underwriter of a mutual

fund’s shares, buying shares directly from the fund, and reselling them to other investors.
DIVERSIFICATION: The policy of spreading investments among a range of different

securities to reduce the risks inherent in investing.
RUPEE-COST AVERAGING: The technique of investing a fixed sum at regular intervals

regardless of stock market movements. This reduces average share costs to the investor, who
acquires more shares on periods of lower securities prices and fewer shares in periods of high
prices. In this way, investing risk is spread over time.
EXCHANGE PRIVILEGE (OR SWITCHING PRIVILEGE): The right to transfer

investments from one fund into another, generally within the same fund group, at nominal cost.
EX-DIVIDEND DATE: The date on which a fund’s Net Asset value (NAV) will fall by an
amount equal to the dividend and/or capital gains distribution. Most publications which list
closing NAV’s place an “X” after a fund name on its ex-dividend date.
EXPENSE RATIO: The ratio of total expenses to net assets of the fund. Expenses include
management’s fees, the cost of shareholder mailings and other administrative expenses. The ratio
is listed in a fund’s prospectus. Expense ratios may be a function of a fund’s size rather than of its
success in controlling expenses.
FISCAL YEAR: In accounting period consisting of 12 consecutive months

GLOBAL FUND: A fund that invests in both India and foreign securities.
GROWTH FUND: A mutual fund whose primary investment objective is long term growth of
capital. It invests principally in common stocks with significant growth potential.
INCOME DIVIDEND: Payment of interest and dividends earned on funds portfolio securities
after operating expenses are deducted.
INCOME FUND: A mutual fund that primarily seek current income rather than growth of
capitals. It will tend to incest in stocks and bonds that normally pay high dividends and interest.
INDEX FUND: A mutual fund that seeks to mirror general sock market performance by
matching its portfolio to a broad based index, most often S&P CNX nifty index.
INTERNATIONAL FUND: A fund that invests in securities traded in markets outside India.
INVESTMENT COMPANY: A corporation, partnership, or trust that invest with pooled money
of many investments. It provides greater professional management and diversification of
investment than most investors can obtain independently.
INVESTMENT OBJECTIVE: The financial goal that a investor or a mutual fund pursues.
JUNK BOND: A speculative bond rated BB or below, “Junk Bonds” are generally issued by
corporations of questionable financial strength or with out proven track records.
LOAD: A sales charge or commission assessed by various Mutual Funds to cover their selling
costs.
LOAD FUND: A Mutual fund that levies a sales charge up to 6% which is included in the
offering price of its shares, and is sold by broker or salesmen.
LOW LOAD FUND: A Mutual fund that charges a small sales commission, usually 3.5% or
less, for the purchase of its shares.
MANAGEMENT FEE: The amount the Mutual Fund pays to its investment advisor for services
rendered, including management of the fund’s portfolio. In general it ranges from 5% to 1% of
the funds asset value.
MONEY MARKET FUND: A mutual Fund that aims to pay money market interest rates.
This is accomplished by investing in safe, high liquid securities, including bank certificates of
deposit, commercial papers, govt. securities and repurchase agreements.
MUTUAL FUND: An open end investment company that buys back or redeems its shares at
current NAV.
NAV PER SHARE: The current market worth of a mutual Fund share. Calculated daily by
taking the funds total assets securities, cash, and any accrued earnings deducting liabilities and
diving the No. the shares holding.
NO-LOAD FUND: A commission free mutual Fund that sells its shares at net asset value, either
directly to the public or through affiliated distributor without addition of sales charge.
PAYABLE DATE: The date on which distributions are paid to share holders who do not want to
reinvestment. The date can be anywhere from one week to one month after the record date.
PORTFOLIO TURNOVER RATE: The rate at which the funds portfolio securities are charged
each year. If a funds assets total Rs.100MN and the fund brought and sold Rs.100Mn worth of
securities that year, its portfolio turnover rate would be 100%.
PROSPECTUS: An official document that each investment company must publish, describing
the mutual fund and offering to it shares for sale.
UNDERWRITER: The org. that acts as the distributor of a mutual funds shares to dealers and
public.
SYSTEMATIC INVESTMENT PLANS: In SIP, instead of large amount, investor invest a pre
specified amount in a scheme at pre specified intervals at the then prevailing NAV.
BIBLOGRAPHY
REFERENCES: BOOKS
1. Dr. Bhalla “Portfolio analysis and Management” V. K. Published by S. Chand Company ltd.,
in the year 2002 and edited in the year 2004
2. Levy, Heim and Sarnat Marshall “Portfolio and Investment Selection” Published by Prentice
Hall, in the year 1984 and edited in the year 1995
3. Mittal R. K “Portfolio and Risk Management” Published by Rajath Publications, Delhi in the
year 1999 and edited in the year 2002
4. Dr. Rajeshwar “UTI: A Saga of crisis and bail outs” by Published by ICFAI Press, in the year
2001 and Edited in the year 2003.
5. Mr. Sahadevan. K. G. and Thiripal raju “Mutual Funds : Data Interpretation and analysis”
Published by Prentice Hall of India in the year 1997 and Edited in the year 2002
6. James Van C. Horne, Financial Management and Policy, Tenth Edition, Prentice Hall of India
Private Limited.
7. Dr. S. N. Maheshwari, Financial Management - Principles and Practice, Ninth Edition, Sultan
Chand & Sons Educational Publishers.
8. Investment Management Security Analysis and Portfolio Management-Preeti Singh,14th
revised Edition- Himalaya Publishing House.
9. Hindu Newspaper (daily), Economic Times of India (daily), Financial Express(daily)
10. Business world(weekly)
11. Published Articles on “Mutual Funds”
12. Websites
www.google.com
www.amfiindia.com
www.cams.com
www.mutualfundsindia.com
www.kotakmutuals.com
www.sbimf.com
www.licmutual.com
www.reliancemutual.co.in

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“A STUDY ON DIFFERENT SCHEMES WITH COMPARISON &

EVALUATION AMONG THE MUTUAL FUNDS WITH

UNDER THE GUIDENCE OF

A DISSERTATION SUBMITTED AS A PARTIAL FULFILLMENT FOR

VISHWA VISHWANI INSTITUTE OF SYSTEMS & MANAGEMENT

By Mr. HARSH JAIN

Hyderabad Signature of Internal Guide

Date : (Name of the internal Guide)

Signature of the student

Date: Director, Academics

LIST OF TABLE WITH TOOLS

1. To project Mutual Fund as the ‘productive avenue’ for investing activities.

SCOPE OF THE STUDY

LIMITATIONS OF THE STUDY

2001 Matrix sold to Friday Corporation Launches Insurance Services

DEVELOPMENT IN BROKERAGE INDUSTRY

BOMBAY STOCK EXCHANGE

NATIONAL STOCK EXCHANGE

MAJOR MUTUAL FUND COMPANIES IN INDIA

ABN AMRO Mutual Fund

Birla Sun Life Mutual Fund

Bank of Baroda Mutual Fund (BOB Mutual Fund)

HDFC Mutual Fund

HSBC Mutual Fund

ING Vysya Mutual Fund

Sahara Mutual Fund

State Bank of India Mutual Fund

Standard Chartered Mutual Fund

Franklin Templeton India Mutual Fund

Morgan Stanley Mutual Fund India

Escorts Mutual Fund

Benchmark Mutual Fund

Canbank Mutual Fund

Chola Mutual Fund

GIC Mutual Fund

BASED ON THE STRUCTURE:

Open ended funds:

Closed ended funds:

Real Estate funds:

BASED ON INVESTMENT OBJECTIVE

Growth market funds:

No- load funds:

Tax saving schemes:

Industry Specific Schemes:

SELECTED MUTUAL FUNDS & SCHEMES

LIC Mutual Fund

SBI Mutual Fund

DATA ANALYSIS AND INTERPRETATIONS

TOOLS AND TECHNIQUES

THE SHARPE MEASURE

SHARPE RATIO = (Rp – Rf )

CALCULATION OF AVERAGE RETURN FOR THE MONTH JANUARY, 2010

EQUITY LINKED SAVING SCHEME (DIVIDEND OPTION)

Fund RELIANCE KOTAK LIC SBI

AVERAGE RETURN = TOTAL RETURN / NUMBER OF DAYS

Fund Average Fund Average Fund Average Fund Average

Fund RELIANCE KOTAK LIC SBI

Fund Average Fund Average Fund Average Fund Average

EQUITY LINKED SAVING SCHEME (DIVIDEND OPTION)

Fund RELIANCE KOTAK LIC SBI

Fund Average Fund TABLE: NO:

Fund RELIANCE KOTAK LIC SBI