TASK- 19

Submitted By:
Anjali Kanwar
Junior Research Analyst
22WM60 B2
1) Calculate and analyse Sortino ratio of 5 assigned mutual funds for 2 years (monthly basis).

Mutual Fund Rate of Return Standard Deviation Riskfree r Sortino Ratio

Aditya Birla Sunlife 20.24 21.87 5.91 0.61
Axis Blue Chip 20.62 19.45 5.91 1.24
Invesco India 32.52 20.11 5.91 0.74
Franklin India 30.14 21.67 5.91 1.77
HDFC Mid cap 38.83 20.12 5.91 2.45

2) Calculate and analyse Treynor’s ratios of 5 assigned mutual funds for 2 years (monthly basis).

Mutual Fund Rate of Return Riskfree rate Beta Treynor ratio

Aditya Birla Sunlife 20.24 5.91 0.99 0.1
Axis Blue Chip 20.62 5.91 0.84 0.1
Invesco India 32.52 5.91 0.83 0.18
Franklin India 30.14 5.91 0.92 3.56
HDFC Mid cap 38.83 5.91 0.84 1.16

3) Calculate and analyse Sharpe’s ratio of 5 assigned mutual funds for 2 years (monthly basis).

Mutual Fund Sharp Ratio

Aditya Birla Sunlife 0.45
Axis Blue Chip 0.44
Invesco India 0.72
Franklin India 0.56
HDFC Mid cap 0.65

4) A bond pays 12% interest per annum. The inflation rate for that year is 4%. Calculate the real
return?
Nominal interest rate 12%
Inflation rate for that year 4%
Real Rate of Return = (1 + Nominal Rate) / (1+ Inflation Rate) -1
= (1+ 0.12) / (1 + 0.04) -1
= (1.12 / 1.04) -1
= 7.69%

Real return 7.69%

5) An investment earns a return of 16% p.a., but the income is taxable in the hands of the investor.
The investor’s marginal tax rate is 20%. Calculate his after tax rate of return?
 Rate of return 16%
Marginal tax rate 20%

After Tax Rate of Return - Nominal Rate of Return

x (1-tax rate)

=16 (1-.20)
= 16 x 0.80
= 12.80%

After tax rate of return 12.80%