ASSOCIATION OF MUTUAL FUNDS IN INDIA (AMFI)

With the increase in mutual fund players in India, a need for mutual fund association in India
was generated to function as a non-profit organization. Association of Mutual Funds in India
(AMFI) was incorporated on 22nd August, 1995.

AMFI is an apex body of all Asset Management Companies (AMC) which has been

registered with SEBI. Till date all the AMCs are that have launched mutual fund schemes are
its members. It functions under the supervision and guidelines of its Board of Directors

Association of Mutual Funds India has brought down the Indian Mutual Fund Industry to a
professional and healthy market with ethical lines enhancing and maintaining standards. It
follows the principle of both protecting and promoting the interests of mutual funds as well as
their unit holders.

THE OBJECTIVES OF ASSOCIATION OF MUTUAL FUNDS

IN INDIA

The Association of Mutual Funds of India works with 30 registered AMCs of the country. It
has certain defined objectives which juxtaposes the guidelines of its Board of Directors. The
objectives are as follows:

This mutual fund association of India maintains a high professional and ethical standards in
all areas of operation of the industry.

It also recommends and promotes the top class business practices and code of conduct which
is followed by members and related people engaged in the activities of mutual fund and asset

33
management. The agencies who are by any means connected or involved in the field of capital
markets and financial services also involved in this code of conduct of the association.

AMFI interacts with SEBI and works according to SEBIs guidelines in the mutual fund
industry.

Association of Mutual Fund of India do represent the Government of India, the Reserve Bank
of India and other related bodies on matters relating to the Mutual Fund Industry.

It develops a team of well qualified and trained Agent distributors. It implements a

programme of training and certification for all intermediaries and other engaged in the mutual
fund industry.

AMFI undertakes all India awarness programme for investors inorder to promote proper
understanding of the concept and working of mutual funds.

At last but not the least association of mutual fund of India also disseminate informations on
Mutual Fund Industry and undertakes studies and research either directly or in association
with other bodies.

THE SPONSORERS OF ASSOCIATION OF MUTUAL FUNDS

IN INDIA

BANK SPONSORED

1.SBI Fund Management Ltd.

2.BOB Asset Management Co. Ltd.

3.Canbank Investment Management Services Ltd.

4.UTI Asset Management Company Pvt. Ltd

5.Institutions

34
6.GIC Asset Management Co. Ltd.

7.Jeevan Bima Sahayog Asset Management Co. Ltd.

PRIVATE SECTOR INDIAN:-

(a) BenchMark Asset Management Co. Pvt. Ltd.

(b) Cholamandalam Asset Management Co. Ltd.

© Credit Capital Asset Management Co. Ltd.

(d) Escorts Asset Management Ltd.

(e) JM Financial Mutual Fund

(f) Kotak Mahindra Asset Management Co. Ltd.

(g) Reliance Capital Asset Management Ltd.

(h) Sahara Asset Management Co. Pvt. Ltd

(i)_Sundaram Asset Management Company Ltd.

(j)Tata Asset Management Private Ltd.

PREDOMINANTLY INDIA JOINT VENTURES:-

1.Birla Sun Life Asset Management Co. Ltd.

2.DSP Merrill Lynch Fund Managers Limited

3.HDFC Asset Management Company Ltd.

35
PREDOMINANTLY FOREIGN JOINT VENTURES:-

1.ABN AMRO Asset Management (I) Ltd.

2.Alliance Capital Asset Management (India) Pvt.

Ltd. 3.Deutsche Asset Management (India) Pvt. Ltd.

4.Fidelity Fund Management Private Limited

5.Franklin Templeton Asset Mgmt. (India) Pvt. Ltd.

6.HSBC Asset Management (India) Private Ltd.

7.ING Investment Management (India) Pvt. Ltd.

8.Morgan Stanley Investment Management Pvt. Ltd.

9.Principal Asset Management Co. Pvt. Ltd.

10.Prudential ICICI Asset Management Co. Ltd.

11.Standard Chartered Asset Mgmt Co. Pvt. Ltd.

ASSOCIATION OF MUTUAL FUNDS IN INDIA

PUBLICATIONS

AMFI publices mainly two types of bulletin. One is on the monthly basis and the other is

36
quarterly. These publications are of great support for the investors to get intimation of the
knowhow of their parked money.

BENEFITS OF MUTUAL FUNDS-

There are numerous benefits of investing in mutual funds and one of the key reasons for its
phenomenal success in the developed markets like US and UK is the range of benefits they
offer, which are unmatched by most other investment avenues. We have explained the key
benefits in this section. The benefits have been broadly split into universal benefits, applicable
to all schemes, and benefits applicable specifically to open-ended schemes.

UNIVERSAL BENEFITS

AFFORDABILITY

37
A mutual fund invests in a portfolio of assets, i.e. bonds, shares, etc. depending upon the
investment objective of the scheme. An investor can buy in to a portfolio of equities, which
would otherwise be extremely expensive. Each unit holder thus gets an exposure to such
portfolios with an investment as modest as Rs.500/-. This amount today would get you less
than quarter of an Infosys share! Thus it would be affordable for an investor to build a
portfolio of investments through a mutual fund rather than investing directly in the stock
market.

DIVERSIFICATION

The nuclear weapon in your arsenal for your fight against Risk. It simply means that you must
spread your investment across different securities (stocks, bonds, money market instruments,
real estate, fixed deposits etc.) and different sectors (auto, textile, information technology
etc.). This kind of a diversification may add to the stability of your returns, for example
during one period of time equities might underperform but bonds and money market
instruments might do well enough to offset the effect of a slump in the equity markets.
Similarly the information technology sector might be faring poorly but the auto and textile
sectors might do well and may protect your principal investment as well as help you meet
your return objectives

VARIETY

Mutual funds offer a tremendous variety of schemes. This variety is beneficial in two ways:
first, it offers different types of schemes to investors with different needs and risk appetites;
secondly, it offers an opportunity to an investor to invest sums across a variety of schemes,
both debt and equity. For example, an investor can invest his money in a Growth Fund (equity
scheme) and Income Fund (debt scheme) depending on his risk appetite and thus create a
balanced portfolio easily or simply just buy a Balanced Scheme.

PROFESSIONAL MANAGEMENT

38
Qualified investment professionals who seek to maximise returns and minimise risk monitor
investor's money. When you buy in to a mutual fund, you are handing your money to an
investment professional who has experience in making investment decisions. It is the Fund
Manager's job to (a) find the best securities for the fund, given the fund's stated investment
objectives; and (b) keep track of investments and changes in market conditions and adjust the
mix of the portfolio, as and when required.

TAX BENEFITS- Any income distributed after March 31,2002 will be subject to tax
in the assessment of all Unit holders. However, as a measure of concession to Unit holders of
open-ended equity-oriented funds, income distributions for the year ending March 31, 2003,
will be taxed at a concessional rate of 10.5%. In case of Individuals and Hindu Undivided
Families a deduction upto Rs. 9,000 from the Total Income will be admissible in respect of
income from investments specified in Section 80L, including income from Units of the
Mutual Fund. Units of the schemes are not subject to Wealth-Tax and Gift-Tax.

REGULATIONS

Securities Exchange Board of India (SEBI), the mutual funds regulator has clearly defined
rules, which govern mutual funds. These rules relate to the formation, administration and
management of mutual funds and also prescribe disclosure and accounting requirements. Such
a high level of regulation seeks to protect the interest of investors.

BENEFITS OF OPEN-ENDED SCHEMES

LIQUIDITY

In open-ended mutual funds, you can redeem all or part of your units any time you wish.
Some schemes do have a lock-in period where an investor cannot return the units until the
completion of such a lock-in period.

CONVENIENCE- An investor can purchase or sell fund units directly from a fund,
through a broker or a financial planner. The investor may opt for a Systematic Investment

39
Plan (“SIP”) or a Systematic Withdrawal Advantage Plan (“SWAP”). In addition to this an
investor receives account statements and portfolios of the schemes.

FLEXIBILITY - Mutual Funds offering multiple schemes allow investors to switch

easily between various schemes. This flexibility gives the investor a convenient way to
change the mix of his portfolio over time

TRANSPARENCY

Open-ended mutual funds disclose their Net Asset Value (“NAV”) daily and the entire
portfolio monthly. This level of transparency, where the investor himself sees the underlying
assets bought with his money, is unmatched by any other financial instrument. Thus the
investor is in the know of the quality of the portfolio and can invest further or redeem
depending on the kind of the portfolio that has been constructed by the investment manager.

DRAWBACKS OF MUTUAL FUNDS

Mutual funds have their drawbacks and may not be for everyone:

NO GUARANTEES:

No investment is risk free. If the entire stock market declines in value, the value of mutual
fund shares will go down as well, no matter how balanced the portfolio. Investors encounter
fewer risks when they invest in mutual funds than when they buy and sell stocks on their own.
However, anyone who invests through a mutual fund runs the risk of losing money.

FEES AND COMMISSIONS:

All funds charge administrative fees to cover their day-to-day expenses. Some funds also
charge sales commissions or "loads" to compensate brokers, financial consultants, or financial
planners. Even if you don't use a broker or other financial adviser, you will pay a sales
commission if you buy shares in a Load Fund.

40
TAXES:

During a typical year, most actively managed mutual funds sell anywhere from 20 to 70
percent of the securities in their portfolios. If your fund makes a profit on its sales, you will
pay taxes on the income you receive, even if you reinvest the money you made.

MANAGEMENT RISK:

When you invest in a mutual fund, you depend on the fund's manager to make the right
decisions regarding the fund's portfolio. If the manager does not perform as well as you had
hoped, you might not make as much money on your investment as you expected. Of course, if
you invest in Index Funds, you forego management risk, because these funds do not employ
managers.

FUTURE OF MUTUAL FUNDS IN INDIA

December 2008, Indian mutual fund industry reached Rs 2,50,537 crore. It is estimated that
by 2010 March-end, the total assets of all scheduled commercial Banks should be Rs
40,90,000 crore.

The annual composite rate of growth is expected 13.4% during the rest of the decade. In the
last 5 Years we have seen annual growth rate of 9%. According to the current growth rate, by
year 2010, mutual fund assets will be double.

Number of foreign AMC's are in the queue to enter the Indian markets like Fidelity
Investments, US based, with over US$1trillion assets under management worldwide. our
saving rate is over 23%, highest in the world. Only channelizing these savings in mutual funds
sector is required.

we have approximately 29 mutual funds which is much less than US having more than 800.
There is a big scope for expansion and 'C' class cities are growing rapidly. Today most of the
mutual funds are concentrating on the 'C’class cities. Soon they will find scope in the growing
cities.

41
Mutual fund can penetrate rural like the Indian insurance industry with simple and limited
product. SEBI allowing the MF's to launch commodity mutual fundse,emphasis on better
corporate governance trying to curb the late trading practices. Introduction of Financial
Planners who can provide need based advice.

CHAPTER-2

OBJECTIVE OF THE STUDY

This project has been made to study about mutual funds, so the purpose of study includes
following objectives-

1. To understand the concept and working of mutual funds.

2. To compare and analyze the performance of selected mutual fund schemes on the basis of
risk and past returns.

3. To study about mutual funds schemes.

4. To know the investment pattern of investor in mutual funds.

The schemes names are-

• Hdfc Equity Fund- Growth

• Fidelity Equity Fund- Growth
• Reliance Vision Fund- Growth
• Franklin India Blue Chip Fund- Growth

The ratios used for comparison on the basis of risk are-

• Beta ratio
• Sharpe ratio
• Treynor ratio

42
 • Alpha ratio

CHAPTER-3

RESEARCH METHODOLOGY

Research- “Research comprises defining and redefining problems ,formulating

hypothesis or suggested solutions, collecting, organizing and evaluating data; making
deductions and reaching conclusions; and at last carefully testing the conclusions to
determine whether they fit the formulating hypothesis”.
-clifford woody

Research methodology has many dimensions. It includes not only research methods but also
consists the logic behind the methods used in the context of the study and explains why only a
particular method of technique had been used so that search lend themselves to proper
evaluation. Thus in a way it is a written game plan for concluding research. Therefore in order
to solve our research problem, it is necessary to design a research methodology for the
problem as the same may differ from problem to problem.

RESEARCH DESIGN- Research design is the conceptual structure within which

the research is conducted. Its function is to provide for the collection of relevant evidence
with minimum expenditure of effort, time and money. But how this can be achieved depends
on the research purpose,
Research design is of mainly three types-

43
1. Exploratory research
2. Descriptive research
3. Experimental research

Exploratory Research- It focuses on the discovery of ideas and is generally based on

primary data. It is preliminary investigation which does not have a rigid design. This is because
a researcher engaged in exploratory study may have to focus as a result of new ideas and
relationship among the variables.
Descriptive Research- This kind of research is concerned with describing the
characteristics of a particular individual or of a group. In this kind of research primary and
secondary both type of data is used. As my project is comparative study of mutual fund of Hdfc
and Sbi mutual fund schemes on the basis of past data about NAV’S and PAST RETURNS.
I have
collected data from secondary sources. So my research study is based on “Descriptive
Research Design”.

Experimental research- This is also called hypothesis-testing research. In it the

researcher tests the hypothesis of causal relationship between variables.

Data collection- The objectives of the project are such that secondary data is required to
achieve them. So secondary data was used for the project. The mode of collecting secondary
data are magazines, books, newspapers, and websites company’s brochures.
So my project contains the “Descriptive Research Design”. So data is taken from secondary
sources.

44
 COMPARATIVE ANALYSIS
The project contains the study of comparative study of performance of selected mutual fund
schemes in India. Project includes the equity diversified schemes of 4 AMC’S. These four
schemes are-

1 .HDFC Equity Fund

2. SBI Equity Fund
3. Reliance Vision Fund
4. Franklin India Blue Chip Fund
For doing comparison we have taken past years returns and reached the result regarding the
performance of the funds.

ON THE BASIS OF PAST YEARS RETURNS OF FUNDS

Details of terms used in the following table-

45
NAV- The performance of a particular scheme of a mutual fund is denoted by Net Asset
Value (NAV). Mutual funds invest the money collected from the investors in securities
markets. In simple words, Net Asset Value is the market value of the securities held by the
scheme. Since market value of securities changes every day, NAV of a scheme also varies on
day to day basis. The NAV per unit is the market value of securities of a scheme divided by
the total number of units of the scheme on any particular date. For example, if the market
value of securities of a mutual fund scheme is Rs 200 lakhs and the mutual fund has issued 10
lakhs units of Rs. 10 each to the investors, then the NAV per unit of the fund is Rs.20. NAV is
required to be disclosed by the mutual funds on a regular basis-daily or weekly - depending
on the type of scheme.

Formula of calculating NAV- Market value of total assets of funds

Total no. of units issued to investors.

Compounded Annual Growth Rate (CAGR)- Refers to the

year over year growth rate of an investment over a specific period of time. Calculated by
taking the nth root of the total percentage growth rate where n is the number of years in the
period being considered.

Formula for CAGR = (1+r/100)n

Here in the table, NAV means “Net Asset Value” and “CAGR” means Compounded Annual
Growth Rate.

Table of compounded annual growth rate

46
Scheme NAV Incepti CAGR CAGR CAGR CAGR CAGR
name on 1 year 3year 5year 10Yea July
date s r 2008
HDFC Equity 168.74 1Jan1995 47.82 51.38 50.98 37.15 25.76

Fund

Reliance 215.51 10Aug1995 56.88 53.04 54.57 32.68 29.7

Vision Fund
Franklin 147.75 12Jan1993 46.24 44.59 47.19 35.85 28.75

IndiaBlue
Chip Fund
Fidelity 24.67 19April 60..39 NA NA NA 50.77

Equity Fund 2005

1. In the past one year, Fidelity Equity Fund has given highest returns.
2. In the past three years, Reliance Vision Fund has given highest returns.
3. In the past five years also, Reliance Vision Fund has given highest returns.
4. In the past 10 years, HDFC Equity Fund has performed well.
5. Since inception, fidelity equity fund has highest Compounded annual growth
returns. So Fidelity Equity Fund and Reliance Vision Fund are performing
well in the market and growing at a rapid pace.

ON THE BASIS OF RISK FACTOR INVOLVED IN THEM-

Risk and Return go hand n hand n investments and finance. One can’t talk about returns
without talking about risk, because investment decisions always involve a trade off between
risk and return. Risk can be defined as the chance that the actual outcome from an investment

47
will differ from the expected income this means that the more variable the possible outcomes
that can occur, the greater the risk.
For determining the risk-return relationship of the funds following four technical ratios have
been used which depict which fund has performed well in the market despite the risk factor
involved in them:
Ratios-
1.Beta ratio
2.Sharpe ratio
3.Treynor ratio
4 Alpha ratio

Formulas used-

1. Beta ratio-

Formula of BETA = COVARIANCE(X,Y)

VARIANCE OF Y
Where X = Annualized Return of Fund
Y = Annualized Return of Market Index

2. Sharpe ratio-

Sharpe ratio- Mean of the fund- Assured return (risk free return)
Standard deviation
(Risk= variability of returns=standard deviation)

3. Treynor ratio-
Treynor ratio- Mean of the fund- Assured return (risk free return)
Beta of portfolio

4. Alpha ratio-

48
Alpha ratio – Mean of fund – (Beta * Mean of benchmark index)

Beta ratio-

A measure of the volatility or systematic risk, of a security or a portfolio in comparison to

the market as a whole. Also known as "beta coefficient".

Beta is calculated using regression analysis, and you can think of beta as the tendency of a
security's returns to respond to swings in the market. A beta of 1 indicates that the security's
price will move with the market. A beta of less than 1 means that the security will be less
volatile than the market. A beta of greater than 1 indicates that the security's price will be
more volatile than the market. For example, if a stock's beta is 1.2, it's theoretically 20% more
volatile than the market. Many utilities stocks have a beta of less than 1. Conversely, most
high-tech Nasdaq-based stocks have a beta of greater than 1, offering the possibility of a
higher rate of return, but also posing more risk.

Sharpe ratio-

The Sharpe Ratio is a measure of the risk-adjusted return of an investment. It was derived by
Prof. William Sharpe, now at of Stanford University who was one of three economists who
received the Nobel Prize in Economics in 1990 for their contributions to what is now called
"Modern Portfolio Theory.” He introduced a measure for the performance of mutual funds
And proposed the term reward-to-variability ratio to describe it

The calculation is pretty straightforward. You invest money in some investment. You then
calculate the value of your investment account (including the initial investment plus the
profit/loss) periodically, say for example, every month. You then calculate the percentage
return in each month. It doesn't matter what kind of investment. It could be simply buying
and holding a single stock, or trading several different commodities with several different
trading systems. All that matters is the account value at the end of each month.

49
Then calculate the average monthly return over some number of months, say for example, 24
months, by averaging the returns for the 24 months. You also calculate the standard deviation
of the monthly returns over the same period.

Then annualize the numbers by:

Multiplying the average monthly return by 12

Multiplying the standard deviation of the monthly returns by the square root of 12.

You also need a number for the "risk-free return" which is the annualized return currently
available on "risk-free" investments. This is usually assumed to be the return on a 90-day T-
Bill which is now about 5% per year.

You now calculate the "Excess return" which is the annualized return achieved by your
investment in excess of the risk-free rate of return available. This is the extra return you
receive by assuming some risk. (Risk is measured by the standard deviation of the returns,
which is actually the "variability" of the returns.)

Excess_return = Annualized_annual_return - Risk_free_return

Then you calculate the Sharpe Ratio as follows:

Sharpe = Excess_return / Annualized_standard_deviation_of_returns

which gives you the Sharpe Ratio of the past returns over the past 24 months.

This is pretty straightforward when you invest in stocks or mutual funds not using margin. If
you use margin or invest in futures contracts, it is a little more complicated. An example
below will illustrate this.

Mutual Funds

50
If the investment was in buying and holding a mutual fund, you will get a number between
about 0.5 and 3. They say that a Sharpe Ratio of over 1.0 is "pretty good". Outstanding funds
achieve something over 2.0.

Trading Systems
If you are "investing" in a system for trading, you still measure the value of your account with
the profit/loss resulting from the trades. You are, in effect sampling the value of the equity
curve (plus the initial investment as defined above). An example will clarify this.
As above, a Sharpe Ratio of a system of over 2.0 is considered very good. Sharpe Ratios
above 3.0 are outstanding. (The Sharpe Ratio reported by services such as Future Truth are
calculated in some other way and get other numbers.)

Treynor ratio-
A ratio developed by Jack Treynor that measures returns earned in excess of that which could
have been earned on a risk less investment per each unit of market risk.

The Treynor ratio is calculated as: (Average Return of the Portfolio - Average Return of the
Risk-Free Rate) / Beta of the Portfolio.
In other words, the Treynor ratio is a risk-adjusted measure of return based on systematic risk.
It is similar to the Sharpe ratio, with the difference being that the Treynor ratio uses beta as
the measurement of volatility.
Also known as the "reward-to-volatility ratio".

Alpha ratio-
1. A measure of performance on a risk-adjusted basis. Alpha takes the volatility (price risk) of
a mutual fund and compares its risk-adjusted performance to a benchmark index. The excess
return of the fund relative to the return of the benchmark index is a fund's alpha.

51
2. The abnormal rate of return on a security or portfolio in excess of what would be predicted
by an equilibrium model like the capital asset pricing model (CAPM).

1. Alpha is one of five technical risk ratios; the others are beta, standard deviation, R-squared,
and the Sharpe ratio. These are all statistical measurements used in modern portfolio theory
(MPT). All of these indicators are intended to help investors determine the risk-reward profile
of a mutual fund. Simply stated, alpha is often considered to represent the value that a
portfolio manager adds to or subtracts from a fund's return.

A positive alpha of 1.0 means the fund has outperformed its benchmark index by 1%.
Correspondingly, a similar negative alpha would indicate an underperformance
of 1%.
2. If a CAPM analysis estimates that a portfolio should earn 10% based on the risk of the
portfolio but the portfolio actually earns 15%, the portfolio's alpha would be 5%. This 5% is
the excess return over what was predicted in the CAPM model.

Schemes are-
1. HDFC Equity Fund- Growth
Fact sheet -
Objective
Aims at providing capital appreciation through investments predominantly in equity oriented
securities

Scheme Performance (%) as on Jul 16 , 2008

14 days 1 month 3 months 1 year 3 yrs * Inception*
3.04 7.36 15.11 49.14 53.37 25.29

52
Top 10 Holdings as on Jun 30, 2008
Portfolio – Top 10 Holdings (as on june 30, 2008)
CompanyIndustry% to NAV
Equity & Equity Related
Reliance Industries Ltd. Petroleum Products 7.93
ITC Ltd. Consumer Non6.54
Durables
State Bank of India Banks 5.23
Divi?s Laboratories Ltd. Pharmaceuticals 4.84
ICICI Bank Ltd. Banks 4.08
Bharti Airtel Ltd. Telecom – Services 4.04
Housing Development Finance Corporation Ltd.$ Finance 3.89

Bharat Heavy Electricals Ltd. Industrial Capital3.66

Goods
Biocon Ltd. Pharmaceuticals 3.12
Sun Pharmaceutical Industries Ltd. Pharmaceuticals 2.97
Total of Top Ten Equity Holdings 46.30
Total Equity Related Holdings 86.18
Other Current Assets (Including Reverse Repos' / CBLO) 13.82
Grand Total 100.00
Net Assets (Rs. In Lakhs) 97580.44

Portfolio Holdings

53
Returns
HDFC Growth (NAV as at evaluation date,62.813
Fund Rs. Per unit)
Date Period NAV Returns(%) $$ ^ Benchmark
Returns(%)#
March 30, 2008 Last 427 days 45.461 31.83** 21.49**
November 30,
2007 Last Six months (18274.895 -16.13* -15.22*
days)
May 30, 2007 Last 1 Year (36652.3840 19.85** 13.87**
days)
May 30, 2005 Last 3 Years (109625.332 35.31** 35.02**
days)
May 30, 2003 Last 5 Years (18279.583 45.59** 38.8**
days)
May 29, 1998 Last 10 Years (3654N.A N.A. 16.09**
days)
September 11, Since Inception (281810.000 26.87** 17.6**
2000 days)

* Absolute Returns ** Compounded Annualised Returns # SENSEX

~ Due to an over all sharp rise in the stock prices
^ Past performance may or may not be sustained in the future

Portfolio As On Jun 30, 2008

54
Fund Size as on Jun 30, 2008 - Fund Size ( Rs. in crores) 4516.6

Asset Allocation as on Jun 30, 2008 -

Equity 98.09%
Debt 0.66%
Other 1.25%

portfolio diversification

equity debt
others

Equity

Company Name Instrument No. of Shares Market Value % of Net

(Rs. in crores) Assets
Crompton
Equity 9500000 240.73 5.33
Greaves Ltd
Larsen & Toubro
Equity 1074811 236.2435 5.23
Limited
Amtek Auto Ltd Equity 5000000 204.175 4.52
Reliance
Equity 1150000 195.5633 4.33
Industries Ltd
Punj Lloyd Ltd Equity 7416975 190.8388 4.23
Bharat Heavy Equity 1199800 184.5112 4.09
Electricals Ltd
Infosys
Equity 843479 162.7113 3.6
Technologies Ltd

55
State Bank of
Equity 1032490 157.5373 3.49
India
CMC Ltd Equity 1244984 148.3336 3.28
Divis Laboratories
Equity 250972 146.8312 3.25
Limited
Bharti Airtel Ltd Equity 1740000 145.4553 3.22
Sun
Pharmaceuticals Equity 1344068 137.8342 3.05
Industries Ltd
Bank of Baroda Equity 5000000 135.125 2.99
Oil & Natural Gas
Equity 1474200 133.4962 2.96
Corpn Ltd
United
Phosphorus Equity 4251092 132.379 2.93
Limited (New)
Siemens Ltd Equity 915000 127.5647 2.82
Zee Entertainment
Equity 4000000 118.92 2.63
Enterprises Ltd
Hindustan
Petroleum Equity 4375741 118.4294 2.62
Corporation Ltd
HT Media
Equity 4594629 108.7089 2.41
Limited.
Nestle India Ltd Equity 927625 107.5999 2.38
Tata Consultancy
Equity 900000 103.4415 2.29
Services Ltd.
Bharat Electronics
Equity 563021 103.0948 2.28
Ltd
AIA Engineering
Equity 582177 102.3962 2.27
Limited.
Wipro Ltd Equity 1600000 82.952 1.84
Glaxo Smithkline
Equity 1287176 74.3666 1.65
Consumer Ltd

56
Dishman
Pharmaceuticals Equity 2331574 71.2529 1.58
& Chemicals
Biocon Ltd. Equity 1595271 70.2557 1.56
ISMT Ltd. Equity 7430000 68.2074 1.51
Himatsingka
Equity 4950245 57.7199 1.28
Seide Ltd
Balkrishna
Equity 945640 57.6651 1.28
Industries Ltd
Reliance
Equity 5000000 55.55 1.23
Petroleum Ltd
Exide Industries
Equity 10140000 48.9762 1.08
Ltd
ICICI BANK
Equity 483895 46.2337 1.02
LTD.
Britannia
Equity 280878 44.2509 0.98
Industries Ltd
Infotech
Enterprises Equity 851531 33.8271 0.75
Limited
Jagran Prakashan
Equity 662436 31.7439 0.7
Ltd
Television
Eighteen India Equity 335000 30.1869 0.67
Ltd
HDFC Mutual
MF Equity 18818452 30.0105 0.66
Fund
Pidilite Industries
Equity 2397672 29.3115 0.65
Ltd
J K Industries Ltd Equity 2195326 29.2747 0.65
TV Today
Equity 2000000 28.77 0.64
Network Ltd
ASC Enterprises
Equity 2500000 26.675 0.59
Ltd
Indo Rama Equity 4638229 22.7273 0.5
Synthetics (India)

57
Ltd
Sun Pharma
Advance Research Equity 1344068 21.8223 0.48
Co Ltd
Savita Chemicals
Equity 812563 21.0738 0.47
Ltd
Shoppers Stop Ltd Equity 342642 20.0206 0.44
Motherson Sumi
Equity 1286511 15.6247 0.35
Systems Ltd

OTHERS

Market Value (Rs.

Name Instrument % of Net Assets
in crores)
Clearing Corporation
Money Market 82.7898 1.83
of India Ltd.
Current Assets Current Assets -26.6088 -0.59

Table for calculating ratios-

HDFC Equity Fund (Growth Option) –

DATE purchase DATE Redemption NAV ANNUALISED

NAV of fund RETURN
1/5/2006 65.484 1/5/2007 134.053 104.7110745
1/6/2006 71.78 1/6/2007 112.327 56.48787963
1/7/2006 74.338 1/7/2007 114.59 54.14727327
1/8/2006 80.94 1/8/2007 115.648 42.88114653
1/9/200 85.992 1/9/2007 128.063 48.92431854
1/10/2006 94.324 1/10/2007 132.634 40.6153259
1/11/2006 89.329 1/11/2007 140.191 56.93783654
1/12/2006 100.945 1/12/2007 147.937 46.55208282

58
1/1/2007 107.188 1/1/2008 147.286 37.40903833
1/2/2007 112.483 1/2/2008 152.415 35.50047563
1/3/2007 119.495 1/3/2008 143.676 20.23599314
1/4/2007 130.819 1/4/2008 136.747 4.531451853
Mean 45.744
SD 23.017
Variance 529.772
Covariance 412.914

BENCHMARK- S&P CNX-500

DATE Index DATE Index Annualised Return

1/5/2006 1695.25 1/5/2007 3100.7 82.91
1/6/2006 1838.45 1/6/2007 2548.35 38.61
1/7/2006 1912.35 1/7/2007 2577.2 34.77
1/8/2006 2039.6 1/8/2007 2559.65 25.50
1/9/2006 2143.6 1/9/2007 2828.3 31.94
1/10/2006 2299.45 1/10/2007 2985 29.81
1/11/2006 2084.65 1/11/2007 3130.45 50.17
1/12/2006 2342.3 1/12/2007 3318.9 41.69
1/1/2007 2464.25 1/1/2008 3323.1 34.85
1/2/2007 2560.55 1/2/2008 3432 34.033
1/3/2007 2698.6 1/3/2008 3147.5 16.63
1/4/2007 2974.1 1/4/2008 3008.75 1.17
Mean 35.174
SD 18.691
Variance 349.341

Ratios calculated

Beta Ratio - 1.182

Sharpe Ratio - 1.748
Treynor Ratio – 34.048
Alpha Ratio - 4.170

2. Fidelity equity fund- Growth Factsheet

59
Objective- To generate long-term capital growth from a diversified portfolio of
predominantly equity and equity-related securities.

Scheme Performance (%) as on Jul 26 , 2008-

14 days 1 month 3 months 1 year 3 yrs * Inception*
2.53 6.78 14.83 67.99 NA 52.98

Top 10 Holdings as on May 31, 2008

Company Nature Value (Cr.) %

Reliance Industries Ltd EQ 152.58 5.28
Bharati Tele - Ventures EQ 127.21 4.4
Bharat Heavy Electricals Ltd EQ 110.73 3.83
State Bank of India EQ 107.23 3.71
Infosys Technologies Ltd EQ 102.22 3.54
ICICI BANK LTD. EQ 94.44 3.27
Tata Consultancy Services Ltd. EQ 85.1 2.94
Larsen & Toubro Limited EQ 80.86 2.8
Cipla Ltd EQ 69.99 2.42
Bank of Baroda EQ 65.31 2.26

Asset Allocation as on May 31, 2008

Equity Debt Money Market

96.16 0 3.84

Fund information-

60
Type of Scheme Open Ended

Nature of Scheme Equity

NAV 25.419 As On Jul 26, 2008

Inception Date Apr 19, 2005

Face Value(Rs/Unit) 10

Fund Size (Rs. in crores) 2989.2549 on Jun 29, 2008

Increase/Decrease (Rs. In crores) 98.181(since May 31, 200)

Minimum Investment (Rs) 5000

Purchase Redemptions Daily

NAV Calculation Daily

Entry Load Amount Bet. 0 to 49999999 then Entry

Load is 2.25% and amount greater than rs.5,00,000 then
entry load is 0%.

Exit Load Exit load is 1%.

Top Industry Allocation as on May 31, 2008

61
Banks 17.202%
Diversified 17.0982%
Computers - Software & Education 14.0135%
Pharmaceuticals 7.4767%
Electricals & Electrical Equipments 5.6582%
Oil & Gas, Petroleum & Refinery 4.8271%
Entertainment 4.6937%
Telecom 4.6794%
Auto & Auto ancilliaries 4.3711%
Engineering & Industrial Machinery 3.5491%

Portfolio As On May 31, 2008

Fund Size as on Jun 29, 2008

Fund Size ( Rs. in crores) 2989.25

Asset Allocation as on May 31, 2008

Equity 96.16%
Debt 0%
Others 3.84%

62
 portfolio diversification

equity debt others

Equity

Market Value % of Net

Company Name Instrument No. of Shares
(Rs. in crores) Assets
Reliance
Equity 867507 152.5771 5.28
Industries Ltd
Bharati Tele –
Equity 1497867 127.2064 4.4
Ventures
Bharat Heavy
Equity 791414 110.7267 3.83
Electricals Ltd
State Bank of
Equity 792129 107.2265 3.71
India
Infosys
Equity 531449 102.2242 3.54
Technologies Ltd
ICICI BANK
Equity 1027518 94.4443 3.27
LTD.
Tata Consultancy
Equity 704296 85.1036 2.94
Services Ltd.
Larsen & Toubro
Equity 402316 80.8615 2.8
Limited
Cipla Ltd Equity 3218860 69.9941 2.42
Bank of Baroda Equity 2368973 65.3126 2.26
Punjab National
Equity 1170390 62.7153 2.17
Bank

63
Grasim Industries
Equity 238921 59.7374 2.07
Ltd
Kotak Mahindra
Equity 993123 56.8364 1.97
Bank Ltd.
Aditya Birla Nuvo
Equity 399249 55.9547 1.94
Limited.
Zee Entertainment Equity 1755403 55.0582 1.9
Deccan Chronicle
Equity 2596088 54.388 1.88
Holdings Ltd
Hindustan Lever
Equity 2622283 53.3372 1.84
Ltd
Satyam Computer
Equity 1077179 50.6166 1.75
Services Ltd
Everest Kanto
Equity 452878 48.7931 1.69
Cylinder Ltd.

Dr Reddys
Equity 739328 47.8456 1.65
Laboratories Ltd
Ess Dee
Equity 1085258 45.2715 1.57
Aluminium Ltd
HDFC Bank Ltd Equity 391061 44.8782 1.55
Gas Authority Of
Equity 1350195 41.2282 1.43
India Ltd
UTI Bank Ltd Equity 708800 40.7525 1.41
Financial
Equity 180560 40.4933 1.4
Technologies
Crompton
Equity 1641095 40.3545 1.4
Greaves Ltd
Jagran Prakashan
Equity 861289 40.0026 1.38
Ltd
Television
Equity 438465 36.9231 1.28
Eighteen India Ltd
Reliance
Equity 3681709 36.9091 1.28
Petroleum Ltd

Tata Motors Ltd Equity 470945 35.5893 1.23

Max India Ltd Equity 1364750 33.9959 1.18

64
Network Eighteen
Equity 657362.4 32.6709 1.13
Fincap Ltd
ONGC Equity 348773 32.1673 1.11
Aurobindo
Equity 465119 31.8351 1.1
Pharma Ltd.
Gujarat
Flourochemicals Equity 467308 29.2511 1.01
Ltd
HCL technologies
Equity 848958 29.2254 1.01
ltd.
Raymond Ltd Equity 829675 27.1096 0.94
NIIT Ltd Equity 293500 25.3892 0.88
ING Vysya Bank
Equity 965130 25.1561 0.87
Ltd
Motherson Sumi
Equity 1972630 24.4606 0.85
Systems Ltd
SKF Bearings
Equity 524946 23.9874 0.83
India Ltd
C M C Ltd Equity 199556 23.7661 0.82
Gujarat Ambuja
Equity 2066127 23.4299 0.81
Cements Ltd
JSW Steel
Equity 386300 23.3731 0.81
Limited.
Lupin Ltd. Equity 328307 23.3525 0.81
NTPC Limited. Equity 1424059 22.5713 0.78
Pantaloo(India) Equity 496607 21.4038 0.74
HT Media
Equity 945915 20.8622 0.72
Limited.
Bharat Earth
Equity 199201 20.7956 0.72
Movers Ltd
Power Finance
Equity 1273246 20.2064 0.7
Corporation Ltd
ITC Ltd Equity 1160555 19.0099 0.66
McNally Bharat Equity 923233 17.9615 0.62
Engineering

Corporation

65
Marico Industries
Equity 2963470 17.0251 0.59
Ltd
Bajaj Auto Ltd Equity 74763 16.6318 0.58
Radico-Khaitan
Equity 1121210 15.9716 0.55
Ltd
Nucleus Software
Equity 156306 15.6517 0.54
Exports Ltd
KEC International
Equity 292646 15.3507 0.53
Ltd.
Dish TV India Ltd Equity 1128934.875 15.1842 0.53
Texmaco Ltd Equity 154297 15.0571 0.52
Eicher Motors Ltd Equity 443543 14.8831 0.51
Hindustan
Construction Equity 1496661 14.3904 0.5
Company Ltd
Infrastructure
Leasing &
Equity 643145 13.7762 0.48
Financial Services
LTD
Sintex Industries
Equity 606529 13.7227 0.47
Ltd
Emco Ltd (Emco
Equity 150852 12.5004 0.43
Transformers Ltd)
MRF Ltd Equity 30000 12.4257 0.43
Aventis Pharma
Equity 85316 11.2715 0.39
India Ltd.
TVS Motor
Equity 1650498 10.819 0.37
Company
Suven Life
Equity 2380544 8.4985 0.29
Science Ltd.
Container
Corporation Of Equity 36075 8.2383 0.28
India Ltd
Idea Cellular
Equity 641830 8.0774 0.28
Limited
Wire and Wireless Equity 1035352.5 7.672 0.27

66
India Ltd.
Shoppers Stop Ltd Equity 119902 7.2391 0.25
V I P Industries
Equity 483156 4.718 0.16
Ltd
McDowell
Equity 90858.4 2.1329 0.07
Holdings
Others
Market Value (Rs.
Name Instrument % of Net Assets
in crores)

Cash Cash 111.1341 3.84

Table for calculating ratios-

Fidelity Equity Fund (Growth Option) –

DATE purchase NAV DATE Redemption NAV ANNUALISED

of fund RETURN
1/5/2006 10.029 1/5/2007 18.74 86.86

1/6/2006 10.311 1/6/2007 15.783 53.07

1/7/2006 11.013 1/7/2007 15.136 37.44
1/8/2006 11.981 1/8/2007 15.523 29.56

1/9/2006 12.659 1/9/2007 17.177 35.69

1/10/2006 13.564 1/10/2007 18.317 35.04

1/11/2006 12.399 1/11/2007 19.335 55.94

1/12/2006 13.857 1/12/2007 20.946 51.16

1/1/2007 14.488 1/1/2008 21.055 45.33

1/2/2007 15.163 1/2/2008 21.804 43.80

67
1/4/2007 18.283 1/4/2008 19.743 7.99
MEAN 42.308

SD 18.501

VARIANCE 342.358

COVARIANCE 340.528

BENCHMARK-BSE200
DATE Index DATE Index ANNUALISED
RETURN
1/5/2006 824.62 1/5/2007 1521.68 84.53
1/6/2006 890.25 1/6/2007 1247.92 40.18
1/7/2006 926.4 1/7/2007 1278.05 37.96
1/8/2006 984.62 1/8/2007 1273.99 29.39
1/9/2006 1020.29 1/9/2007 1411.2 38.31
1/10/2006 1108.83 1/10/2007 1489.46 34.33
1/11/2006 1007.59 1/11/2007 1569.1 55.73
1/12/2006 1132.92 1/12/2007 1665.53 47.01
1/1/2007 1187.26 1/1/2008 1669.59 40.63
1/2/2007 1240.72 1/2/2008 1711.74 37.96
1/3/200 1318.85 1/3/2008 1564.49 18.63
1/4/2007 1446.09 1/4/2008 1487.13 2.84
MEAN 38.96
SD 18.84
VARIANCE 355.06

Ratios calculated-
Beta Ratio – 0.959

Sharpe Ratio – 1.989

Treynor Ratio – 38.379

Alpha Ratio - 4.946

68
3. Reliance Vision fund - Growth
Factsheet –
Objective- Seeks to provide long term capital appreciation primarily investing in growth
oriented stocks.

Scheme Performance (%) as on Jul 26 , 2008

14 days 1 month 3 months 1 year 3 yrs * Inception*
1.66 7.75 19.66 61.84 53.73 29.97

Top 10 Holdings as on Jun 29, 2008-

Company Nature Value (Cr.) %

Divis Laboratories Limited EQ 263.27 8.48
Larsen & Toubro Limited EQ 175.84 5.67
Reliance Industries Ltd EQ 173.89 5.6
Infosys Technologies Ltd EQ 173.61 5.59
Alstom Projects India Ltd. EQ 144.23 4.65
Reliance Communication. EQ 139.71 4.5
Siemens Ltd EQ 139.54 4.5
Other Equities EQ 115.18 3.71
HDFC Bank Ltd EQ 114.68 3.7
JaiPrakash Associates Ltd. EQ 111.15 3.58

Asset Allocation as on Jun 29, 2008–

Equity Debt Money Market
86.4 0 13.6

69
Fund Information-

Type of Scheme Open Ended

Nature of Scheme Equity

Inception Date Oct 7, 1995

Face Value(Rs/Unit) 10
Net Asset Value (Rs/Unit) 220.86 on july2007-2008

Fund Size (Rs. in crores) 3103.37 on Jun 29, 2008

Increase/Decrease since May 31, 2007 (Rs. 133

in crores)
Minimum Investment (Rs) 5000

Purchase Redemptions Daily

NAV Calculation Daily

Fund Manager Kunj Bansal

Entry Load Amount Bet. 0 to 19999999 then Entry load

is 2.25%. and Amount Bet. 20000000 to
49999999 then Entry load is 1.25%. and
Amount greater than 50000000 then Entry
load is 0%. If redeemed bet. 0 Months to 6
Months; and Amount Bet. 0 to 49999999
then Exit load is 1%. If redeemed bet. 6
Exit Load Months to 12 Months; and Amount Bet. 0 to
49999999 then Exit load is 0.5%. and
Amount greater than 50000000 then Exit
load is 0%.

Top Industry Allocation as on Jun 29, 2008-

70
Diversified 14.2423%
Computers - Software & Education 10.3082%
Pharmaceuticals 8.4834%
Auto & Auto ancilliaries 6.4516%
Power Generation, Transmission & Equip 5.889%
Banks 5.4907%
Telecom 4.5019%
Electronics 4.4962%
Miscellaneous 3.7114%
Housing & Construction 3.5816%

Portfolio As On Jun 29, 2008

Fund Size as onJun 29, 2008

Fund Size ( Rs. in crores) 3103.37

Asset Allocation as on Jun 29, 2008

Equity 86.4%
Debt 0%
Others 13.6%

71
 portfolio diversification

equity debt
others

EQUITY
Market Value % of Net
Company Name Instrument No. of Shares
(Rs. in crores) Assets
Divis
Laboratories Equity 450000 263.2726 8.48
Limited
Larsen & Toubro
Equity 800000 175.8401 5.67
Limited
Reliance
Equity 1022559 173.8913 5.6
Industries Ltd
Infosys
Equity 900000 173.6146 5.59
Technologies Ltd
Alstom Projects
Equity 1788623 144.2345 4.65
India Ltd.
Reliance
Communication Equity 2700001 139.7116 4.5
Ventures Ltd.
Siemens Ltd Equity 1000861 139.5351 4.5
HDFC Bank Ltd Equity 1000000 114.675 3.7
JaiPrakash
Equity 1500001 111.15 3.58
Associates Ltd.
Grasim
Equity 350000 92.26 2.97
Industries Ltd
Tata Consultancy Equity 755443 86.8269 2.8

72
Television
Eighteen India Equity 925501 83.3969 2.69
Ltd
Maruti Udyog
Equity 1000000 74.415 2.4
Ltd
Indian Hotels Co
Equity 4825002 72.8093 2.35
Ltd
Cummins India
Equity 2000001 67.99 2.19
Ltd
Tata Motors Ltd Equity 1000000 67.02 2.16
Network
Eighteen Fincap Equity 1154332 59.4597 1.92
Ltd
Automotive
Equity 1200000 58.782 1.89
Axles Ltd
State Bank of
Equity 365187 55.7203 1.8
India
Hindustan
Petroleum Equity 2000001 54.13 1.74
Corporation Ltd
Gujarat State
Fertilizers & Equity 3007425 53.066 1.71
Chemicals Ltd
Tata Tea Ltd Equity 563353 48.2878 1.56
ITC Ltd Equity 3043841 47.0882 1.52
Bharat Forge Ltd Equity 1495965 46.1505 1.49
Apollo Tyres Ltd Equity 1400001 44.695 1.44
Gujarat Ambuja
Equity 3500997 43.5874 1.4
Cements Ltd
Reliance Energy
Equity 627858 38.5222 1.24
Ltd
Deccan Aviation
Equity 2599614 35.7447 1.15
Ltd.

73
Table For Calculating Ratios-
Reliance Vision Fund- (Growth option)

DATE purchase DATE Redemption NAV ANNUALISED

NAV of fund RETURN
1/5/2006 86.09 1/5/2007 171.6 99.33
1/6/2006 92.05 1/6/2007 136.11 47.87
1/7/2006 92.23 1/7/2007 137.64 49.24
1/8/2006 100.41 1/8/2007 138.71 38.14
1/9/2006 105.54 1/9/2007 152.2 44.21
1/10/2006 114.32 1/10/2007 234.47 105.09
1/11/2006 107.47 1/11/2007 172.67 60.67
1/12/2006 120.08 1/12/2007 178.48 48.63
1/1/2007 126.56 1/1/2007 184.85 46.06
1/2/2007 132.87 1/2/2008 186.17 40.11
1/3/2007 141.83 1/3/2008 173.56 22.37
1/4/2007 160.34 1/4/2008 163.04 1.68
Mean 50.284
SD 27.347
Variance 747.835
Covariance 403.060

Benchmark-BSE100
DATE Index DATE Index ANNUALISED
RETURN
1/5/2006 3332.31 1/5/2007 6344.04 90.38
1/6/2006 3611.25 1/6/2007 5210.33 44.28
1/7/2006 3822.89 1/7/2007 5415.86 41.67
1/8/2006 4090.31 1/8/2007 5418.86 32.48
1/9/2006 4218.18 1/9/200 5983.43 41.85
1/10/2006 4610.17 1/10/2007 6295.82 36.56
1/11/2006 4191.1 1/11/2007 6639.14 58.41
1/12/2006 4731.96 1/12/2007 7018.37 48.32
1/1/2007 4951.69 1/1/2008 7059.84 42.57
1/2/2007 5182.28 1/2/2008 7233.71 39.59
1/3/2007 5523.69 1/3/2008 6614.12 19.74

74
1/4/2007 6046.49 1/4/2008 6287.69 3.99
Mean 41.65
SD 19.83
Variance 393.36

Ratios calculated-
Beta Ratio - 1.0247

Sharpe Ratio - 1.638

Treynor Ratio – 43.707

Alpha Ratio – 7.604

4. Franklin India Blue Chip Fund-Factsheet-Objective-

Aims to achieve a high degree of capital appreciation through investments in well-established,

large size blue chip companies.

Scheme Performance (%) as on Jul 16 , 2008

14 days 1 month 3 months 1 year 3 yrs * Inception*
4.52 10.14 16.41 47.56 46.13 28.66

Top 10 Holdings as on Jun 29, 2008

Company Nature Value (Cr.) %
Reliance Industries Ltd EQ 170.03 6.68
Grasim Industries Ltd EQ 155.6 6.12
Bharati Tele - Ventures EQ 147.12 5.78
Infosys Technologies Ltd EQ 141.79 5.57

75
Kotak Mahindra Bank Ltd. EQ 134.5 5.29
Larsen & Toubro Limited EQ 120.78 4.75
Siemens Ltd EQ 116.27 4.57
Aditya Birla Nuvo Limited. EQ 113.87 4.48
BHEL EQ 107.68 4.23
HDFC Ltd EQ 101.51 3.99

Asset Allocation as on Jun 29, 2008 –

Equity Debt Money Market
95.41 0 4.59

Fund Information

Type of Scheme Open Ended

Nature of Scheme Equity

Inception Date Nov 30, 1993

Face Value(Rs/Unit 10

Net Asset Value (Rs/Unit) 149.1463 As On Jul 16, 2008

Fund Size (Rs. in crores) 2544.3445 on Jun 29, 2008

Increase/Decrease since May 31, 2007 (Rs. -28.7

in crores)
Previous Name Pioneer ITI Bluechip - Growth

76
Minimum Investment (Rs) 5000

Purchase Redemptions Daily

NAV Calculation Daily

Fund Manager K. N. Siva Subramanian

Entry Load Entry Load is 2.25%.

Exit Load Exit Load is 0%.

Last Dividend Declared 1:1 Bonus / Rights On Mar 24, 2000

Top Industry Allocation as on Jun 29, 2008

Diversified 24.1323%
Banks 11.5145%
Computers - Software & Education 9.8214%
Telecom 8.926%
Auto & Auto ancilliaries 7.4254%
Finance 6.6915%
Electricals & Electrical Equipments 6.3025%
Entertainment 4.7096%
Electronics 4.5699%
Tobacco & Pan Masala 3.4605%

Portfolio as on Jun 29, 2008

Fund Size as on Jun 29, 2008
Fund Size ( Rs. in crores) 2544.34

77
Asset Allocation as on Jun 29, 2008
Equity 95.41%
Debt 0%
Others 4.59

portfolio diversification

equity debt others

EQUITY

Company Name Instrument No. of Shares Market Value % of Net

(Rs. in crores) Assets
Reliance
Equity 1000000 170.03 6.68
Industries Ltd
Grasim
Equity 589837 155.5961 6.12
Industries Ltd
Bharati Tele –
Equity 1759892 147.1182 5.78
Ventures
Infosys
Equity 734944 141.7854 5.57
Technologies Ltd
Kotak Mahindra
Equity 2000000 134.5 5.29
Bank Ltd.
Larsen & Toubro
Equity 550000 120.7827 4.75
Limited
Siemens Ltd Equity 832729 116.274 4.57
Aditya Birla
Equity 850000 113.8702 4.48
Nuvo Limited.

78
Bharat Heavy
Equity 700000 107.6775 4.23
Electricals Ltd

79
Housing
Development
Equity 500000 101.51 3.99
Finance
Corporation Ltd
Zee
Entertainment Equity 3260416 96.9811 3.81
Enterprises Ltd
ITC Ltd Equity 5691412 88.0461 3.46
ICICI BANK
Equity 800000 76.424 3
LTD.
Maruti Udyog
Equity 1000000 74.31 2.92
Ltd
Infrastructure
Development Equity 5227676 68.7439 2.7
Finance company
Cummins India
Equity 1902806 64.6859 2.54
Ltd
MICO Equity 141376 63.364 2.49
Tata Consultancy
Equity 500000 57.4625 2.26
Services Ltd.
HDFC Bank Ltd Equity 500000 57.205 2.25
Dr Reddys
Equity 820874 53.8452 2.12
Laboratories Ltd
Hindustan Lever
Equity 2845042 53.7286 2.11
Ltd
ABB Ltd Equity 480955 52.679 2.07
Tata Motors Ltd Equity 765281 51.2547 2.01
Satyam
Computer Equity 1083721 50.6423 1.99
Services Ltd
Reliance Equity 800000 41.364 1.63
Communication

Ventures Ltd.
Idea Cellular
Equity 3100000 38.626 1.52
Limited

Indian Hotels Co
Equity 1805591 27.1922 1.07
Ltd

80
Cipla Ltd Equity 1187249 24.7482 0.97
Dish TV India
Equity 2139204 22.8467 0.9
Ltd
Nestle India Ltd Equity 160000 18.5592 0.73
State Bank of
Equity 100000 15.253 0.6
India
Asian Paints
Equity 135000 10.9478 0.43
Limited
Canara Bank Ltd Equity 220000 5.9323 0.23

Table for calculating ratios-

Franklin India Blue Chip Fund- Growth

81
DATE Purchase DATE Redemption NAV ANNUALISED
NAV of fund RETURN

1/5/2006 1/5/2007
60.13 121.08 101.3637
1/6/2006 1/6/2007
63.8 98.22 53.94984
1/7/2006 1/7/2007
67.8 100.88 48.79056
1/8/2006 1/8/2007
73.18 101.39 38.54878
1/9/2006 1/9/2007
77.57 111.75 44.06343
1/10/2006 1/10/2007
83.91 116.9 39.31593
1/11/2006 1/11/2007
77.89 125.01 60.49557
1/12/2006 1/12/2007
87.46 130.49 49.19963
1/1/2007 1/1/2008
90.68 132.85 46.50419
1/2/2007 1/2/2008
96.51 135.42 40.31707
1/3/2007 1/3/2008
104.26 123.16 18.12776
1/4/2007 1/4/2008
114.84 118.0375 2.784309
Mean
45.288
SD
22.604
Variance
510.947
Covariance
458.238

BENCHMARK –BSE SENSEX

DATE Index DATE Index ANNUALISED

RETURN
1/5/2006 6195.15 1/5/2007 12218.78 97.23
1/6/2006 6729.9 1/6/2007 10071.42 49.65
1/7/2006 7210.77 1/7/2007 10695.26 48.32
1/8/2006 7669.45 1/8/2007 10751.66 40.19

82
1/9/2006 7876.15 1/9/2007 11778.02 49.54
1/10/2006 8697.65 1/10/2007 12366.39 42.18
1/11/2006 7944.1 1/11/2007 13033.04 64.06
1/12/2006 8944.78 1/12/2007 13844.78 54.78
1/1/2007 9390.14 1/1/2008 13942.24 48.48
1/2/2007 9859.26 1/2/2008 14267.18 44.71
1/3/2007 10565.47 1/3/2008 13159.55 24.55
1/4/2007 11564.36 1/4/2008 12455.37 7.70
Mean 47.62
SD 20.43
Variance 417.54

Ratios calculated-
Beta ratio- 1.097

Sharpe ratio- 1.760

Treynor ratio- 36.255

Alpha ratio - -6.969

CHAPTER 5

INFERENCES DRAWN
Table Containing Ratios For Drawing Inferences

Fund name Beta ratio Sharpe ratio Treynor ratio Alpha ratio
HDFC Equity 1.182 1.748 34.048 4.170
Fund
Fidelity Equity 0.959 1.989 38.379 4.946
Fund
Reliance Vision 1.025 1.638 43.707 7.604
Fund
Franklin India 1.097 1.760 36.255 -6.969

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Bluechip Fund

INFERENCES
ACCORDING TO BETA RATIO – Beta measures the relative risk
associated with any individual portfolio as measured in relation to market portfolio.
Lower the Beta, lesser the volatility and risk.
A beta of 1 indicates that the security's price will move with the market. A beta of less than 1
means that the security will be less volatile than the market. A beta of greater than 1 indicates
that the security's price will be more volatile than the market.
In the above chart Fidelity Equity Fund has lowest Beta .It means that Fidelity Equity Fund is
less volatile in comparison to other funds .

Beta Ratio

1.4
1.2
1
H0D.8FC Equity Fund Fidelity Equity Fund Reliance Vision
Fund F0r a.6n k l i n India Blue Chip Fund
0.4
percentages

0.2
0
BETA RATIO

According to Sharpe ratio- The Sharpe Ratio is a measure of the risk-adjusted

return of an investment and it is a measure for the performance of mutual funds and it is also
called reward-to-variability ratio .

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Higher the ratio, better the fund performance.
A Sharpe Ratio of a system of over 2.0 is considered very good.
Sharpe Ratios above 3.0 are outstanding.
So from the ratios calculated, Fidelity Equity Fund has higher sharpe ratio with lowest
standard deviation means with less risk.

Sharpe Ratio

2.5

2
HDFC Equity Fund Fidelity Equity Fund Reliance Vision Fund
F1r a.5n k l i n India Blue Chip Fund
percentage

0.5

0
Sharpe Ratio

According to Treynor ratio- The Treynor ratio is a risk-adjusted measure of

return based on systematic risk. It is similar to the Sharpe ratio, with the difference being that
the Treynor ratio uses beta as the measurement of volatility.it measures returns earned in
excess of that which could have been earned on a riskless investment per each unit of market
risk.
Higher the Treynor Ratio,better the fund’performance.
So Reliance Vision fund has the highest treynor ratio in comparison to other funds.

85
 Treynor ratio

50
45
40
H3D5FC Equity Fund Fidelity Equity Fund Reliance Vision Fund
F3ra0nklin India Blue Chip Fund
25
percentage

20
15
10
5
0
Treynor Ratio

According to Alpha ratio- Alpha takes the volatility (price risk) of a mutual fund
and compares its risk-adjusted performance to a benchmark index. The excess return of the
fund relative to the return of the benchmark index is a fund's alpha.
A positive alpha of 1.0 means the fund has outperformed its benchmark index by 1%.
Correspondingly, a similar negative alpha would indicate an underperformance
of 1%.
Higher the alpha ratio,better the fund’s performance
Reliance Vision Fund has highest alpha ratio. So this fund has outperformed it’s benchmark’s
index by 7.6%. but franklin India blue chip fund has a negative alpha so this fund is not
performing well.

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 Alpha Ratio

10
8
6 HDFC Equity Fund Fidelity Equity Fund Reliance Vision Fund
4 Franklin India Blue Chip Fund
2
0
percentage

-2
-4
-6
-8 Alpha Ratio

87
CHAPTER-6
SWOT ANALYSIS OF HDFC AMC VIZ-A-VIZ OTHER FUND
HOUSES
Strengths: Weakness:

⟶Brand image. ⟶Inability to fully cover the

outstation market
⟶Image of an Ethical player.
⟶Lack of manpower.
⟶Brand Reach
⟶ Overshadowing of Home
⟶Prompt service provider.
Loans.
⟶Good relationship with
distributors
⟶Efficient Sales Staff
⟶Fair understanding of market
and competition.

Opportunity: Threats:

⟶Unexplored/ outstation ⟶Substitute products like bank

market. FDs, RDs etc.
⟶Target export segment ⟶New entrants
aggressively

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CHAPTER-7
CONCLUSION
Mutual fund industry is on growth now a days. People are becoming more interested in
purchasing mutual funds because they find it less risky and more beneficial compared to
direct equity investment.

In this project, comparison have been done on the basis of technical ratios which depict risk-
return relationship and by analyzing past years returns of the funds. By analyzing the ratios it
has been found out that Fidelity Equity Fund and reliance vision fund is less risky and also
giving fair returns.

HDFC Equity Fund had performed above average and given consistent returns year over year.
Number of foreign AMC's are in the queue to enter the Indian markets.we have approximately
29 mutual funds which is much less than US. There is a big scope for expansion. Mutual fund
can penetrate rural like the Indian insurance industry with simple and limited products

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CHAPTER-9
BIBLIOGRAPHY

1. Books on mutual fund- AMFI publications, Investment Analysis and Portfolio

Management by Prasanna Chandra.
2. Journals- ICFAI Publications- Overview on Mutual Funds.
3. Newspapers- The Economic Times, Business Standard.
4. Internet sites
a) www.Google.com
b) www.mutualfundsindia.com
c) www.amfi.com
d) www.valueresarchonline.com
e) www.investopedia.com
f) www.wikipedia.com
g) www.answers.com
h) www.hdfcfund.com
i) www.nribanks.com
j) www.mutualfunds.about.com/cs/history/a/fundhistory.htm
5. Mutual fund insight magazine

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