A

PROJECT REPORT
ON
MUTUAL FUNDS
WITH REFERENCE TO
CRESTER GLOBAL FINANCE
Submitted for the partial Fulfillment of the requirement for the award
of the degree of
BACHELOR OF COMMERCE
Submitted by:

SYED MOHEET UDDIN 1062-20-405-441

JABER HUSSAIN 1062-20-405-150

MOHD AZAM KHAN 1062-20-405-848
MOHD JUNAID UDDIN 1062-20-405-451

Under the guidance of

MISS. ASIYA SULTANA

Assistant Professor

ANWAR UL ULOOM DEGREE COLLEGE

(Affiliated to Osmania University)

HYDERABAD

2023

1
 STUDENT DECLARATION

We SYED MOHEET UDDIN, JABER HUSSAIN, MOHD AZAM KHAN, MOHD

JUNAID UDDIN student of B.com at ANWAR UL ULOOM DEGREE COLLEGE

Hyderabad hereby declare that the project A STUDY ON MUTUAL FUNDS WITH

REFERENCE TO CRESTER GLOBAL FINANCE Submitted for the award of

degree of Bachelor OF Commerce is a reward of bonafide work done by me under the

guidance of ASIYA SULTANA Assistant professor ANWAR UL ULOOM

DEGREE COLLEGE To Osmania University. It is original and genuine work done by

me.

Place :

Date : Signature of the student

2
 CERTIFICATION

This is to certify that the project Report titled“A STUDY ON MUTUAL FUNDS

WITH REFERENCE TO CRESTER GLOBAL FINANCE submitted in partial

fulfillment for the award of B.com (General) program me of Department of

Commerce, O.U. Hyderabad, was carried out by

SYED MOHEET UDDIN 1062-20-405-441

ABER HUSSAIN 1062-20-405-150

MOHD AZAM KHAN 1062-20-405-848
MOHD JUNAID UDDIN 1062-20-405-451

under my guidance. This has not been submitted to any other University or Institution

for the award of any degree/diploma/certificate.

Signature of the Guide Signature of the Principal

3
 ACKNOWLEDGEMENT

I deem it a privilege to owe a special acknowledge to ANWAR UL ULOOM

DEGREE COLLEGE for giving me an opportunity to do the project .I convey my

thanks to MOHAMMED RAZAK KHAN Principal of ANWAR UL ULOOM

DEGREE COLLEGE for giving the permission for the project I am greatly thankful to

our project Guide ASIYA SULTANA for her valuable support advice and guidance

throughout the project and given away to complete my project .

SYED MOHEET UDDIN 1062-20-405-441

ABER HUSSAIN 1062-20-405-150

MOHD AZAM KHAN 1062-20-405-848
MOHD JUNAID UDDIN 1062-20-405-451

4
 ABSTRACT

Mutual Funds are professionally managed pool of money from a group of

investors. A Mutual fund manager invests your funds in securities including

stocks and bonds, Money Market instruments or some combination and

decides the best time to buy and sell. By pooling your resources with other

investors in Mutual Funds, you can diversify even a small investment over a

wide spectrum.

With the emergence of the capital market at the center stage of the Indian

financial system from its marginal role a decade earlier, the Indian capital market also

witnessed during the same period a significant institutional development in the form of

diversified structure of Mutual Funds. A Mutual fund is a special type of investment

institution which acts as an investment conduit.

5
 TABLE OF CONTENTS

CHAPTERS PARTICULARS PAGE

NO

CHAPTER – I INTRODUCTION 1-21

RESEARCH METHODOLOGY

SCOPE OF THE STUDY

OBJECTIVES OF THE STUDY
RESEARCH METHODOLOGY
LIMITATIONS OF THE STUDY

CHAPTER – II COMPANY PROFILE & 22-26

INDUSTRY PROFILE
CHAPTER – DATA ANALYSIS AND 27-43
III INTERPRETATION

CHAPTER - IV FINDINGS,SUGGESTION 44-65

& CONCLUSION

66-68

6
BIBLIOGRAPHY 69-70

CHAPTER -1
INTRODUCTION

7
 INTRODUCTION

Mutual Funds are professionally managed pool of money from a group of

investors. A Mutual fund manager invests your funds in securities including

stocks and bonds, Money Market instruments or some combination and

decides the best time to buy and sell. By pooling your resources with other

investors in Mutual Funds, you can diversify even a small investment over a

wide spectrum.

With the emergence of the capital market at the center stage of the Indian

financial system from its marginal role a decade earlier, the Indian capital market also

witnessed during the same period a significant institutional development in the form of

diversified structure of Mutual Funds. A Mutual fund is a special type of investment

institution which acts as an investment conduit.

It pools the savings, particularly of the relatively small investors, and invests

them in a well-diversified portfolio of sound investment. As an investment intermediary,

it offers a variety of services/advantages to the relatively small investors who on their

own cannot successfully construct and manage investment portfolio mainly due to the

small size of their funds, lack of expertise and experience, and so on. These services

include the diversification of portfolio, expertise of the professional management,

liquidity of investment, tax shelter, reduced risk and reduced cost.

Mutual fund is the most suitable investment mode for the common man as it

offers an opportunity to invest in a diversified, professionally managed portfolio at a

relatively low cost. Anybody with an investible surplus of as little as a few thousand

8
rupees can invest in mutual funds. Each Mutual fund scheme has a defined investment

objective and strategy.

The most important trend in the Mutual Fund industry is the aggressive

expansion of the foreign owned Mutual Fund companies and the decline of the

companies floated by nationalized banks and smaller private sector players.

Funds issue and redeem shares on demand at the fund's net asset value (NAV).

Mutual fund management fees typically range between 0.5% and 2% of assets per year,

exchange fees and other administrative charges also apply.

According to SEBI - Mutual Fund is defined as - “A fund established in the

form of a trust to raise money’s through the sale of units to the public or a section of the

public under one or more schemes for investing in securities, including money market

instruments.”

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

the offer document.

9
NEED OF THE STUDY

The basic purpose of the study is to give broad idea on Mutual Funds and

analyze various schemes to highlight the diversified investment that Mutual Fund offers

to its investors. Through this study one can understand how to invest in Mutual Funds

and turn the raw investment into ripen fruits by taking wise decisions, taking the risk

factors into account.

SIGNIFICANCE OF THE STUDY

 The Study presents basic concept and trends in the Mutual fund Industry.

 The Study enables a fresh investor to understand easily the various benefits
offered by Mutual Funds and their working in the Market.

 The Study provides a clear idea on growth of Mutual Funds from past to the
present scenario and its scope in the future.

 The Study gives a brief idea on the Open- Ended Balanced Growth Schemes of
five major organizations.

 At the end of the study, one can conclude what type of investments would be
ideal with reference to the risk taking abilities of the investors and which type of
investments would suit their financial needs and goals.

10
OBJECTIVES OF THE STUDY

 To study and analyze Open-Ended Balanced growth schemes of five Mutual

Funds and to compare and Rank each of them.

 To give a broad idea on basics, structure, constituents, characteristics, advantages,

disadvantages, types, and risk associated with Mutual Funds.

 To give investor an idea on Mutual Funds and its working in the market with

illustrations.

 To understand the recent trends in the world of Mutual Funds.

 The project gives a detailed idea which enables even a common man or fresh

investor to understand the functioning of Mutual Funds and to take wise

investment decisions.

METHODOLOGY OF THE STUDY

All information related to the topic needs to be carefully scrutinized to avoid the

risk of biased analysis. Having once identified which information is relevant and need to

be collected, we will have to define how this will be done. The Method employed in the

investigation depends on the purpose and scope of the study.

 Research Design:

Research design is some statement or specification of procedures for collecting

and analyzing the information required for the solution of some specific problem. Here,

the exploratory research is used as investigation and is mainly concerned with

determining the trends and returns in Mutual Funds and Bank returns.

11
 Data Collection Methods:

The key for creating useful system is selectivity in collection of data and linking

that selectivity to the analysis and decision issue of the action to be taken. The accuracy

of collected data is of great significance for drawing correct and valid conclusions from

the research.

 Sources of Information:

Data available in marketing research are either primary or secondary. Primary

Data is not included in this study, only secondary data is taken in to account since, it is a

comparative analysis.

Secondary Data:

Secondary data can be defined as - “data collected by someone else for

purpose other than solving the problem being investigated”. Secondary data is

collected from external sources which include information from published material of

SEBI and some of the information is collected online. The data sources also include

various books, magazines, newspapers, websites etc. The organization profile is

collected from the Hyderabad Stock Exchange.

12
SCOPE OF THE STUDY

The Study covers the basic meaning, concept, structure and the organization of

the Mutual Funds. The Study is restricted to explain only the returns provided by the

Mutual Funds from various schemes. Under this study investments relating to Open-

Ended Balanced Growth Fund of Mutual Funds are taken into account. The reasons for

such performance are immediately analyzed in the commentary. Pie charts are used to

reflect the portfolio risk and return. The project basically carried out to give good

guidelines for investor.

The project idea is to project mutual funds as the better avenue for investment.

Mutual fund is productive package for a lay-investor with limited finances. Mutual fund

is a very old practice in U.S., and it has made a recent entry into India. Common man in

India still finds ‘Bank’ as a safe door for investment. This shows that mutual funds have

not gained a strong foot-hold in his life.

The project creates an awareness that the mutual fund is worthy investment

practice. 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 a handy return to the investor. The project analyses various schemes of mutual

fund by taking different mutual fund schemes from different AMC’S. The future

challenges for mutual funds in India are also considered.

13
TOOLS USED FOR ANALYSIS

TABULATION:

A Table is a systematic arrangement of statistical data in rows and columns.

Rows are horizontal arrangements whereas columns are vertical arrangements.

Tabulation is a systematic presentation of data in a form suitable for analysis and

interpretation.

PRESENTATION OF DATA:

The impression created by a picture has much greater impact than detailed

explanation. Statistical data can be effectively presented in the form of diagrams and

graphs. Graphs and Diagrams make complex data simple and easily understandable.

They help to compare related data and bring out subtle data with amazing clarity. The

diagrams used are as follows –

 PIE CHARTS: The Pie charts are used to represent a component on a

percentage basis. Each part of a component is shown as the percentage of whole

component. Pie Charts are used to represent the percentage share of Equity, Debt

& Money Market components of Balanced Growth Fund.

 BAR DIAGRAMS: The Bar Diagrams are used specifically for categorical

data series. They consist of the group of equidistant rectangles, one for each group

or category of data in which the values of magnitudes are represented by length or

height of rectangles.

14
LIMITATIONS OF THE STUDY

 The data that is considered for the Comparative analysis of various Mutual

Funds returns of Open-Ended Balanced Growth Fund are only for a short period of

one year and performance during this period DEC not be same in future. Project

period is only 45 days , so I have taken two months portfolios into consideration

 As the project period is limited, the long-term data of Mutual Funds are not

taken into consideration in analysis section.

 Mutual Funds of only five organizations are taken into account for analyzing

their performance, because the time duration of the project is short and limited.

The performance of these funds since inception is not considered.

 This study on Mutual Funds is restricted to Open-Ended Balanced Schemes

only. The core details are untouched.

 The data taken into account for analysis is very general. Confidential data is

ignored as it is highly sensitive. As a result the information presented in the

research report is limited.

15
 CHAPTER -2
REVIEW OF LITERATURE

16
 LITERATURE REVIEW

A Mutual Fund is a financial intermediary which acts as an instrument of

investment. It collects the funds from different investors to a common pool of investible
funds and then invests these funds in a wide variety of investment opportunities in
diversified portfolios of securities such as Money Markets instrument, corporate and
government bonds and equity shares of joint stock companies.

The investment DEC be diversified to spread risk and to ensure good return to
the investors. The Mutual Funds employ professional, experts and investment
consultants to conduct investment analysis and then to select the portfolio of securities
where the funds are to be invested.

Each investor owns units, which represent a portion of the holdings of the fund. You can
make money from a MF in three ways:-

1. Income is earned from dividends on stocks and interest on bonds. A Fund pays out
nearly all income it receives over the year to fund owners in the form of a
distribution.

2. If the fund sells securities that have increased in price, the fund has a capital gain.
Most funds also pass on these gains to investors in the form of dividends.

3. If fund holdings increase in price but are not sold by the fund manager, the fund’s
shares increase in price. You can then sell your Mutual Fund units for a profit.
Funds will also usually give you a choice either to receive a cheque for dividends or
to re-invest the same and get more units.

17
 FIGURE 2.1 THE WORKING OF MUTUAL FUND

MUTUAL
FUND

Sponsor Trustee AMC Custodian

FIGURE 2.2 STRUCTURE AND CONSTITUENTS OF FUND

SPONSOR:
 Establishes the MUTUAL FUND
→ Need to have sound financial track record.
→ Appoints TRUSTEES.
→ Appoints Asset Management Company.
→ Must contribute 40% of the net worth of the AMC.

 Sometimes this power is given by the sponsor to the trustees through the trust deed.

 At least 50% of directors on the board of Asset Management Company should be

independent of the sponsor.

 Asset Management Company shall not deal with any broker or firm associated with

sponsor beyond 5% of daily gross business of the Mutual Fund.

18
 All securities transactions of the Asset Management Company with its associates

should be disclosed.

TRUSTEE:
 Manages the Mutual Fund and look after the operation of the appointed AMC.

 The investments are held by the Trustees, in a fiduciary responsibility.

 Trustees approve each Mutual Fund Scheme floated by AMC.

 Furnish report to SEBI on half yearly basis on AMC and Fund Functioning.

ASSET MANAGEMENT COMPANY:

 AMC acts as investment manager of the trust under the board supervision and

direction of the trustees.

 AMC floats the different Mutual Fund schemes.

 Submits report to the Trustees on quarterly basis, mentioning activity and

compliance factor.

 AMC is responsible to the trustees.

 AMC fees have a ceiling, decided by SEBI.

 Should have a net worth of at least Rs.10 crores at all the times.

CUSTODIAN:

 Appointed by board of trustees for safekeeping of securities.

 It’s an entity independent of sponsors.

SEBI regulates the securities market in India. According to SEBI every Mutual

Fund require that at least two thirds of the directors of trustee company or board of

trustees must be independent i.e. they should not be associated with the sponsors. Also,

50% of the directors of AMC must be independent. All Mutual Funds are required to be

registered with SEBI before they launch any Scheme.

19
 FIGURE 2.3 ORGANISATION OF MUTUAL FUND

CHARACTERISTICS OF MUTUAL FUNDS:

 A Mutual Fund actually belongs to the investors who have pooled their funds. The

ownership of the Mutual Fund is in the hands of the investors.

 Mutual funds are trusts or registered associations managed by investment

professionals and other service providers, who earn a fee for their services from the

fund.

 The pools of the funds are invested in a portfolio of marketable investments (Shares

and Securities). The value of the portfolio is updated every day.

 Mutual funds collect money from small investors and in return, they will issue a

certificate in units.

 The investor’s share in the fund is denoted by “UNITS". The value of the units

changes with the change in the portfolio’s value every day.

 The profits of investments will be distributed to the unit holders. The unit holders

can sell their units in the open market at ‘Net Asset Value’ (NAV).

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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 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. The

performance of a particular scheme of a Mutual Fund is denoted by “Net Asset Value”.

For example; if the market value of securities of a MF 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 MF on a regular basis

– daily or weekly – depending on the type of scheme.

Market value of the fund’s investments + Receivables + Accrued Income –

Liabilities – Accrued Expenses  
NAV =
    Number of Outstanding units

OBJECTIVES OF MUTUAL FUNDS:

The objectives sought to be achieved by Mutual funds are as follows:-

 To provide an opportunity for lower income groups to acquire without much

difficulty property in the form of shares.

 To cater mainly to the need of individual investors whose means are small?

 To manage investor’s portfolio’s in a manner that provides regular income, growth,

safety, liquidity and diversification.

21
SCHEMES OF MUTUAL FUNDS:

Mutual fund schemes are usually open-ended (Perpetually open for investors and

redemption) or close-ended (with a fixed term). A Mutual Fund scheme issues units that

are normally priced at Rs.10/- during the initial offer. The number of units you own

against the total number of units issued by a Mutual Fund scheme determines your share

in the profits or losses in the scheme.

TYPES OF MUTUAL FUND SCHEMES

The Mutual Funds can be classified under the following types:

ACCORDING TO STRUCTURE:

FIGURE 2.4 STRUCTURE OF MUTUAL FUNDS

OPEN - ENDED SCHEME

An open-ended scheme is a scheme in which an investor can buy and sell units

on a daily basis. The scheme has a perpetual existence and flexible, ever changing

corpus. Open-Ended schemes do not have a fixed maturity period. The investors are

free to buy and sell any number of units, at any point of time, at prices that are linked to

the NAV of the units.

22
 In these schemes the investor can invest and disinvest any amount, any time after

a short initial lock – in period. This scheme gives investors with instant liquidity and

fund announces sale and repurchase price from time to time. The units can be bought

from and sold to any Mutual Fund.

Advantages of Open-ended funds over Close-ended funds:

 Any time Entry Option.

 This provides ready liquidity to the investors and avoids reliance on transfer deeds,

signature verifications and bad deliveries.

 Allows to enter the fund at any time and even to invest at regular intervals.

 Any time Exit Option.

CLOSE – ENDED SCHEME:

A Close-ended scheme has a stipulated maturity period. E.g. 5-7 years. A Close-

ended scheme is one in which the subscription period for the Mutual Fund remains open

only for a specific period, called the ‘redemption period’. At the end of this period, the

entire corpus is disinvested and the proceeds distributed to unit holders. After final

distribution the scheme ceases to exist. Such schemes can be rolled over by approval of

unit holders.

Reason’s for fluctuations in NAV

 Investor’s doubts about the abilities of the fund’s management.

 Lack of sales effort (Brokers earn less commission on closed end schemes than on

open ended schemes).

 Riskiness of the fund.

 Lack of marketability of the fund’s units.

23
INTERVAL SCHEMES

Interval schemes are those that combine both the features of both open-ended and

close-ended schemes. The units DEC be traded on the stock exchange or DEC be open

for sale redemption during pre–determined intervals at NAV related prices.

ACCORDING TO INVESTMENT OBJECTIVE:

EQUITY SCHEME

DEBT OR BOND SCHEME

BALANCED SCHEME

INVESTMENT
OBJECTIVE
MONEY MARKET SCHEME

GROWTH & INCOME FUND

OTHER SCHEMES

FIGURE 2.5 INVESTMENT OBJECTIVES

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ADVANTAGES OF MUTUAL FUNDS:

The key advantages of both open and close-end Mutual Funds is that they put

professional managers with experience and access to sophisticated financial research to

work for you this, and other wide range of key benefits are as follows :-

1) Professional Management:

Experienced portfolio managers carefully select a fund’s holdings according to the

fund’s seated investment objective. The portfolio management team continuously

monitors and evaluates the fund’s holdings to help make sure it keeps pace with

changing market conditions. The team decides when to buy and sell securities. There

is a fee associated with this professional management.

2) Diversification:

A Single diversified Mutual Fund DEC invest in dozens – even hundreds – of

different holdings. This approach DEC reduce the impact on your return if any one

investment held by the fund declines. Diversification spreads your assets among

different types of holdings and DEC be one of the best ways to protect yourself amid

the complexity and uncertainty of the financial markets.

3) Compounding:

In a Mutual Fund, you DEC choose to reinvest your earnings automatically to buy

more shares. When you reinvest, not only do you have the potential to earn money

on your initial investment, you DEC also have the opportunity to earn money on the

dividends and capital gains you accumulate. Compounding DEC increase the impact

of what you contribute and can help your money grow faster. And the longer you

invest, the greater the potential growth.

25
4) Systematic Investing:

You can invest in most mutual funds automatically through regular payments

directly from your bank account; you can start building a long-term investment

program. With systematic investing you invest a fixed amount of money at regular

intervals regardless of market conditions, helping out market fluctuations.

5) Hassle-free operations:

With most Mutual Funds, buying and selling shares, changing distribution options,

and obtaining information can be accomplished conveniently by telephone, by mail,

or online. Although a fund’s shareholder is relieved of the day-to-day tasks involved

in researching, buying and selling securities, an investor will still need to evaluate a

Mutual Fund based on investment goals and risk tolerance before making a purchase

decision. Investors should always read the prospectus carefully before investing in

any Mutual Fund.

6) Buying Power:

When you invest in a mutual fund, you join the other investors in a pool of

investment money. The result is that you have a “partial stake” in each company the

fund holds for a relatively small amount of principal invested, while potentially

offsetting some of the risk associated with holding individual securities.

7) Choice:

There is an incredible array of mutual funds – more than 10,000 – available to meet

your specific Investment objective. Funds have different investment objectives and

degrees of investment risk – often indicated through asset classes and sub-classes,

such as money market funds, fixed income funds, balanced funds, growth and

income funds, growth funds and aggressive growth funds.

26
8) Liquidity:

Mutual fund shares are liquid and orders to buy or sell are placed during market

hours. However, orders are not executed until the close of business when the NAV

(Net Asset Value) of the fund can be determined. Fees or commissions DEC or DEC

not be applicable. Fees and commissions are determined by the specific fund and the

Institution that executes the order.

9) Transparency:

You get regular information on the value of your investments in addition to

disclosure on the specific investments made by your scheme, the proportion invested

in each class of assets and the fund manager’s investment strategy and outlook.

DISADVANTAGE OF MUTUAL FUNDS:

1) Over Diversification:

Diversification is usually a good thing because it reduces risk, but Mutual Funds

sometimes make small investments in so many securities that they become over

diversified. In other words, the Mutual Fund’s holdings in each security DEC be so

small that it is difficult to realize substantial return from any of those holdings,

which in turn means that the overall return for each investor is small.

2) Unused Cash:

Your cash DEC occasionally serve as liquidity insurance rather than work for you as

an investment. The constant availability of shares is certainly convenient for

investors in a mutual fund, but it can also operate as a disadvantage. A Mutual Fund

manager must always prepare for the possibility than an investor will cash in his or

her shares. As a result Mutual Funds must maintain a ready cash supply at all times.

27
3) Fluctuating Returns:

Mutual funds are like many other investments without a guaranteed return. There is

always the possibility that the value of your mutual fund will depreciate. Unlike

fixed-income products, such as Bonds and Treasury Bills, mutual funds experience

price fluctuations along with stocks that make up the fund.

4) Costs Despite Negative Returns:

Investors must pay sales charges, annual fees, service charges and other expenses

regardless of how the fund performs. In addition, depending on the timing of their

investment, investors DEC also have to pay taxes on any capital gains distribution

they receive – even if the fund went on to perform poorly after they bought shares.

5) Misleading Advertisements:

The misleading advertisements of different funds can guide investors down the

wrong path. Some funds DEC be incorrectly labeled as growth funds, while others

are classified as small-cap or income.

6) Evaluating Funds:

Not offer investors the opportunity to compare the P/E ratio, sales growth, earnings

share, etc. A Mutual Fund’s Net Asset Value gives the investors the total value of

the Another limitation of mutual fund is the difficulty they pose for investors

interested in researching and evaluating the different funds. Unlike stocks, mutual

funds do fund’s portfolio less liabilities.

7) Poor Transparency:

Technology used for servicing of investors and for portfolio management and

investment decision making is poor and general efficiency and timeliness are

lacking as a result of antiquated methods of operation. Telex, telephone and

communication systems are poor and antiquated.

28
 RISK ASSOCIATED WITH MUTUAL FUND INVESTMENT

The Principal that the greater risk you take, the greater the potential reward.

Typically, risk is defined as short – term price variability. But on a long – term basis,

risk is the possibility that your accumulated real capital will be insufficient to meet your

financial goals. And if you want to reach your financial goals, you must start with an

honest.

At the cornerstone or investing is the basic appraisal of your own personal

comfort zone with regard to risk. Individual tolerance for risk varies, creating a distinct

‘investment personality’ for each investor. Some investors can accept short-term

volatility with ease, others with near panic. So whether you consider you investment

temperament to be conservative, moderate or aggressive, you need to focus on how

comfortable or uncomfortable you will be as the value of your investment moves up or

down

TYPES OF RISK:

All investments involve some form of risk. Even an insured band account is

subject to the possibility that inflation will rise faster than your earnings, leaving you

with less real purchasing power than when you started (Rs.1000 gets you less than it got

your father when he was your age). Consider these common types of risks and evaluate

them against potential rewards when you select an investment.

29
 Market

Inflation

Credit

Interest Rate

TYPE OF
RISKS
Employees

Exchange Rate

Investment

Government Policies

FIGURE 2.6 TYPES OF RISKS

1) Market Risk: At times the prices or yields of the all the securities in a particular

market rise or fall due to broad outside influences. When this happens, the stock

prices of both an outstanding, highly profitable company and a fledging corporation

DEC be affected. This change in price is due to “Market Risk”.

2) Inflation Risk: Sometimes referred to as “loss of purchasing power”. Whenever

inflation sprints forward faster than the earnings on your investment, you run the

risk that you’ll actually be able to buy less, not more. Inflation risk also occurs when

prices rise faster than your return.

30
3) Credit Risk: In short, how stable is the company or entity to which you lend your

money when you invest. How certain are you that it will be able to pay the interest

you are promised, or repay your principal when the investment matures.

4) Interest Risk: Changing interest rates affect both equities and bonds in many ways.

Investors are minded that “predicting” which way rates Effect of loss rev

professionals and inability to adapt:

An industries key asset is often the personnel who run the business i.e.

intellectual properties or the key employees of the respective companies. Given the

ever-changing complexion of few industries and the high obsolescence levels,

availability of qualified, trained and motivated personnel is very critical for the

success of industries in few sectors. It is, therefore, necessary to attract key

personnel and also to retain them to meet the changing environment and challenges

the sector offers. Failure or inability to attract/retain such qualified key personnel

DEC impact the prospect of the companies in the particular sector in which fund

invests.

5) Exchange risk: A number of companies generate revenues in foreign currencies and

DEC has investments or expenses also denominated in foreign currencies. Changes

in exchange rates DEC, therefore, have a positive negative impact on companies

which in turn would have an effect on the investment of the fund.

6). Changes in government policy: Changes in government policy especially in regard

to the tax benefits DEC impact business prospects of the companies leading to an

impact on the investments made by the fund.

31
 TABLE 2.1 RISK RETURN GRID

RISK
TOLERANCE/ SUITABLE BENEFITS
FOCUS
RETURN PRODUCTS OFFERED BY
EXPECTED MF’S
Bank/company FD, Liquidity, Better
Low Debt
Debt based Funds Post-Tax return
Balanced Funds, some Liquidity, Better
Partially Debt, Diversified Equity Post-Tax returns,
Medium Partially Funds are some debt Better Management,
Equity Funds, Mix of share Diversification
and Fixed Deposits
Capital Market, Equity Diversification,
Funds (Diversified as Expertise in stock
High Equity well as Sector) picking, Liquidity,
Tax free dividends

32
COST INVOLVED IN MUTUAL FUNDS

An investor must know that there are certain costs can be classified into 2 broad

categories:

Operating expenses - Which are paid out of the fund’s earnings

Sales charges - That are directly deducted from your investment. It is not

compulsory that every mutual fund levy sales charges but

they certainly have operating expenses. No doubt they

influence returns on investment in a fund.

 Operating expenses:

These referred to cost incurred to operate a mutual fund. Advisory fees paid to

investment managers, Audit fees to chartered accountant, custodial fees, register and

transfer agent fees, trustee fee, agent commission. Operating expenses also known as

expenses ratio which is annual expenses expressed as a percentage of the funds average

daily net assets mutual funds. The breakup of these expenses is required to be reported

in the schemes offer document (or) prospectus

Operating expenses
Expenses Ratio = -----------------------------
Average Net Assets

For instant, if funds Rs. 100 Crores and expenses 20 lakhs. Then expenses ratio

is 2% expenses ratio is available in the offer document and from historical per unit

statistics included in the financial results of the fund which are published by annually.

33
UN audited for the half year ending Sep’30 and audited for the physically year end in

March 30.

Depending upon schemes and net asset, operating expenses are determined by

limits mandated by SEBI Mutual fund regulation Act. Any excess over specified limits

as to be borne by Asset Management Company, the trustees or sponsors.

 Sales charges:

These are known commonly sales loads; these are charged directly to investor.

Sales loads are used by mutual fund for the payment of agent’s commission, distribution

and marketing expensed. These charges have no effect on the performance of the

scheme. Sales loads are usually express in percentage and or of two type’s front-end and

back end.

 Front-end load: It is a onetime fixed fee paid by an investor when buying a

mutual fund scheme. It determines public offer price which intern decides how much of

your initial investment actually get invested the standard practice of arriving a public

offer price is as follows:

Net Asset Value

Public offer price = ---------------------------

(1- front end load)

Let us assume, an investor invests Rs.10, 000 in a scheme that charges a 2%front

end load at a NAV per unit RS. 10 using the formula public offer price =10/ (1-0.02) is

Rs. 10.20, so only 980 units are allotted to the investor.

Amount invested
Number of units allotted = --------------------------
Public offer price

34
 10,000/10..20= 980 units at a NAV of Rs. 10
This means units worth 9800 are allotted to him on an initial investment of Rs. 10,000.

Front end loads tent to decrease as initial investment amount increase.

 Back end load:

DEC be a fixed fee redemption (or) a contingent deferred sales charges-a

redemption load continues so long as the redeeming or selling of the units of the units of

a fund does not take place in the event of back end load is applied. The redemption price

is arriving at using following formula.

Net Asset Value

Redemption price = ------------------------------
(1+ back end load)

Let us assume an investor redeems units valued at Rs. 10,000 in a scheme that charges a

2% back end load at a NAV per unit of Rs. 10. Using the formula redemption price 10/

(1+0.02) = Rs. 9.8

So, what the investor gets in hand is 9800(908*1000)

 Contingent Deferred Sales Charges (CDSC):

Contingent deferred sales charges are a structured back end load. It is paid when

the units are redeemed during the initial years of ownership. It is for a pre determined

period only and reduced over the time you’re invested for a fund. The longer the

investor remains in fund the lower the CDSC.

The SEBI (mutual fund Regulation 1996) stipulate that a CDSC DEC be

charge only for first 4 years after purchase of units and also stipulate the maximum

CDSC that can we charge every year. The SEBI Mutual funds Regulation 1996 do not

allow either the front end load or back end load to any combination is higher that 7%.

35
 Transaction cost:

Some funds DEC also impose a switch over fee which is a charge on transfer of

investment from one scheme to another within a same mutual fund family and also to

switch from on plan (short term) to another (long term) within same scheme.

SYSTEMATIC INVESTING PLANS (SIPs)

It is an investment vehicle, where you need to deposit a fixed amount at regular

intervals (monthly, quarterly, etc.) in a MF scheme; just like you do in a recurring

deposit account with a bank or the post office.

Regular Investing is not easy. Owing to lack of time, most people invest

sporadically. The result? The returns are rarely optimal. However, there is a foolproof

way of investing a fixed amount of money at regular intervals: Chola Mutual Fund’s

“Systematic Investment Plan” (SIP). SIP uses the concept of rupee cost averaging,

ensuring investors buy more when prices are low; and fewer units when prices are high.

Benefits of Systematic Investment Plans

Discipline Saving:

Inculcating discipline in your investment has been easier. Your investment is

done on a regular basis by the mutual fund without any intervention required by you.

The best part is that you will not feel the pain of having to save since the money will

move from your bank account automatically.

Rupee Cost Averaging:

The SIP helps you take advantage of the fluctuation in the stocks market by

rupee cost averaging. The investor buys more units when the prices are low and

fewer units cost. Assume you are investing Rs.1000/- each for next four months.

36
 TABLE 2.2 EXAMPLE OF RUPEE COST AVERAGING

Month Amount Invested Purchase Price No of Units Purchased

1 1000 10 100

2 1000 09 111.11

3 1000 10 100

4 1000 11 90.9

Total Investment = Rs. 4000; No of units purchased is 402.21. The average cost per

units work out to be Rs9.95.

As illustrated, over time you have a lower average cost per unit. By investing a fixed

amount of money at regular intervals, you as an investor stand to gain reasonable returns

and create significantly wealth-over time.

Lower Cost of Investing:

Getting into SIP program does not required large investment amounts at regular

intervals. Even as small as Rs. 1000 can be invested at regular intervals.

Builds Investment Kitty:

You have to give Post-Dated cheque (PDCs) to the mutual fund for deposit on

specific dates, for the amount you want to invest. These cheques are presented to your

bank account on these dates and the funds are withdrawn from your account for

investment in the mutual fund scheme at the prevailing NAV. Other than making the

37
initial investment and issuing the cheques at the beginning, no further efforts are

required from you.

Overcoming market volatility:

SIPs help you avoid missing market falls because of lack of time to track the

market. You don’t have the responsibility of actively monitoring market movement to

be able to enter during falls.

Redemption of Units:

The units can be redeemed (i.e. sold back to the mutual fund) or switched-out

subject to completion of lock in period, on every business day at the redemption price.

The redemption/switch out request can be made by way of a written request, on a pre

printed form or by using the relevant tear off section of the transaction slip enclosed

with the account statement, which should be submitted at/DEC be sent by mail to any of

the ISC’s.

Redemption price:

Redemption price will be calculated on the basis of the loads of different plans/options.

The redemption price per unit will be calculated using the following formula:

Redemption Price = Application NAV * (1 – exit Load, if any)

Example for calculation of redemption Price

If the application NAV is Rs.10.00; Exit/redemption load is 2%, then the redemption

price will be calculated as follows:

= Rs.10.00 *(1-0.02)

= Rs.10.00 * (0.98)

= Rs.9.80

38
 CHAPTER -3

COMPANY PROFILE AND INDUSTRY PROFILE

39
 COMPANY PROFILE

Talent Logic, Inc. (formerly Sai People Solutions, Inc.) was founded by Siva Tayi in
1984 and incorporated in Texas in 1986. The company is certified as a minority-owned
business by the Houston Minority Supplier Development Council (HMSDC) which is
affiliated to the National Minority Supplier Development Council (NMSDC).Today,
Talent Logic has employees nationwide in the United States and India. In the US, Talent
Logic is headquartered in Kingwood, TX (suburb of Houston). The company also has
consultant locations in Atlanta, GA; Houston, TX; New England, Philadelphia, PA;
Raleigh, NC; San Francisco, CA. Talent Logic’s overseas office is located in
Hyderabad, India.
Talentlogic Info Services Private Limited is a Private incorporated on 17 December
2003. It is classified as Non-govt company and is registered at Registrar of Companies,
Hyderabad. Its authorized share capital is Rs. 500,000 and its paid up capital is Rs.
100,010.It is inolved in Other computer related activities [for example maintenance of
websites of other firms/ creation of multimedia presentations for other firms etc.]

Talentlogic Info Services Private Limited's Annual General Meeting (AGM) was last
held on 29 September 2015 and as per records from Ministry of Corporate Affairs
(MCA), its balance sheet was last filed on 31 March 2015.

Directors of Talentlogic Info Services Private Limited are Ravindra Nandyala, Rajanala
Ramnath Rao, Tayi Sudha and Tayi Siva Prasad.

40
1984 Founded as Sai Software Consultants, Inc. by Siva P. Tayi in Houston, TX
1991-1992, 1994-1996 As one of the fastest growing companies in Houston, Sai
became the recipient of the Houston100 award recognizing the company’s progress and
growth over the years.
1993 Ranked in Inc.500 as one of the fastest growing 500 companies in US as
acknowledged by Inc. magazine
1997 Our CEO was honored with Regional Entrepreneur of the Year in High
Technology and Telecommunications award by Ernst & Young. The company received
ISO 9000 certification the same year.
2002 With an expanded vision and enhanced portfolio of services, the company was
revamped as Sai People Solutions, Inc. in 2002.
2003 Success continued and Sai won the E-10 award conferred by HMSDC at their
6th Annual ceremony.
2004 Overseas support operations began with state-of-the-art infrastructure at
Hyderabad, India.
2005 In line with changing trends and technological innovations, Sai made leaps and
bounds with the web based vendor management tool and online internal
resource/information management system.
2006 Talent Gurus, Sai’s Business Process Outsourcing (BPO) services division was
launched.
2007 Within a year, Talent Gurus grew into a Global Outsourcing services provider.
2008-2010 Successfully expanded US operations by venturing into newer regions
and ramping up existing service lines.
2011 Responding to the market environment, Sai has embraced a name change to
Talent Logic, Inc. with an expanded vision and mission to rebrand itself as a company
of the future…

Talent logic staffing agency provides immediate Job placement opportunities where
Jobseekers can land on their dream job. With the assistance of our staffing team Job
seekers find it highly advantageous to hone up their skills and also in getting suitable
opportunities to explore the field finding a new niche for their abilities.

41
How are we able to do all of this? At Talent Logic, we’re not just a staffing company,
we’re a well-oiled machine. We should be – we’ve been in the business for over 30
years! We have staffing down to a science and have won countless awards for quality
and service. At Talent Logic, we don’t just focus on one piece of the puzzle. We look at
the bigger picture and that includes you. Let us show you how it all comes together.
At Talent Logic, we do the following to set our candidates up for success:

Provide pre-training prior to the contract period

Domain based specific training will be imparted before induction
Polish and hone existing skills and strengths to keep them competitive
Offer feedback from clients to help them build on their experience
Prepare for future trends to keep them ahead of the curve
The companies who take advantage of contract-to-hire staffing reap the following
benefits:

Tension and stress-free recruitment process

Removal of financial risks for their administration
Extra time for their departments to utilize in other areas
Confidence that they’re being presented with the best possible candidate for their
position
Guarantee that if they’re not satisfied with their candidate, we’ll find them a suitable
replacement and do it in record time.
Contract-to-hire staffing is a fast and flexible solution to get your job filled, without the
headache of overextending your own resources to review resumes, interview candidates
and extend offers. And what would you do if you lost the best candidate to a competitor
during the process? Would you be forced to start the process all over? At Talent Logic,
we’ve already done the hard work for you; we’ve already secured the best candidates.
Our experienced recruiters source, select and screen these exceptional candidates then
match them to the skills, attitude and aptitude that you request from us at the beginning
of the process. The reality is that by the time you pick up the phone to call us, we’re
already preparing your employee ready to go to work.

42
Putting quality into our work and having confidence in our candidates is very important
to us at Talent Logic, so we’re certain that you’ll be happy in our hands. The beauty of
Contract-To-Hire staffing is that if you try out an employee on a temporary basis then
later decide to introduce them to your payroll, we can make this a smooth transition. It’s
also common that as you decide to hire this candidate, other strong employees within
your organization will grow and be promoted, as well, leaving other vacant spots to fill.
We can help with this, too. Not only do we want to help you with your current staffing
needs, we want to build a long lasting relationship with you. We’ve only done our job if
you’re happy, the candidate is happy and we’re the first person you think to call the next
time you have an urgent – or even planned – staffing need.

Contract-To-Hire Staffing is a no risk solution to small firms and Fortune 500

companies alike and there’s no request too big or too small. From sourcing to recruiting,
all procedures are followed with an eye to meet your precise job requisites. If Contract-
To-Hire Staffing is the solution for your business, contact Talent Logic today to get
started.

43
Talent Logic is a one stop source for all requirements of contract staffing. Our clients
can get single source management for all their staffing requirements. With our help,
staffing is made easier, without sacrificing quality and competency. Demand for
efficient staff members is ever increasing and companies always aim to fill their core
positions strategically by choosing a candidate meeting stringent parameters. This is
where Talent Logic comes in. Our expert team members provide efficient solutions,
matching the right skills and talents to meet job challenges.

The companies who take advantage of contract staffing reap the following benefits:

An immediate solution to any staffing problem

Increased productivity for their entire team
Extra time for their departments to utilize in other areas
Confidence that they’re being presented with the best possible candidate for their
position
Guarantee that if they’re not satisfied with their candidate, we’ll find them a suitable
replacement and do it in record time.
Client companies save cost on inventory when they hire Talent Logic for the contract
staffing process. For those companies seeking to access talent and tweak their workforce
as needs arise, Talent Logic offers flexible, effective and short/long term staffing
solutions. If your projects need immediate resources, count on us for quality and a quick
timeline, with no employee-related costs. Talent Logic offers flexible solutions for
seasonal and cyclic hiring and responds to these requests within 24 hours. We pride
ourselves in being a one-stop solution for all your staffing requirements and we can do
so with little notice.

Job Seekers see the advantages of working with contract staffing.

According to the American Staffing Association, about one in five contract employees
cited scheduling flexibility as a key reason for choosing temporary work. Furthermore,
nine out of ten of them said staffing work made them more employable. The reality is
that if you need contract workers due to employee absenteeism – or simply because of a
seasonal spike or special project – through Talent Logic, you’re not only going to be
bringing in skilled workers, you’re going to be bringing enthusiastic people to your team
44
as well. Whether it’s a day, a week or even a year, contract workers want to come to
work.

Our employees get ample benefits from the contract staffing process as they develop the
skill sets required for the specific industry. They develop real time know-how of the
industry, which will further extend their chances of getting hired permanently. This also
gives them a better chance of getting hired in premium organizations. They understand
the real-time working environment and will learn the necessary skills to become
indispensable in that specific industry.

At Talent Logic, we do the following to set our candidates up for success:

Provide pre-training prior to the contract period

Domain based specific training will be imparted before induction
Polish and hone existing skills and strengths to keep them competitive
Offer feedback from clients to help them build on their experience
Prepare for future trends to keep them ahead of the curve
Reduction of HRD involvement in the recruitment process
HRD involvement will be reduced to a greater extent, allowing them to spend time in
resourceful work. Management saves administration time since the overwhelming
paperwork is eliminated in contract staffing. Organizations save the cost of all the
benefits extended to the permanent staff. Talent Logic provides a wide array of domain
specific services within short notice. The entire process is well monitored and result-
oriented solutions will be provided with efficacy and speed. We guarantee you’ll be
provided with trained and tested employees for a seamless working environment.

“I was impressed by the quality of the candidates that were provided when we opened
the requisition.
Your Candidate is doing a great job. She has very quickly integrated herself into the
team and made a substantial contribution. Our plan is to review her contract near the six
month mark to determine next steps.” – Major Financial Client of Talent Logic

You may not need another employee today, but tomorrow could be a different story.
Contact Talent Logic and we’ll handle whatever comes your way.
45
Direct Hire Staffing is a service we can provide to you here at Talent Logic. Sure, you
may think of a staffing company as placing temporary workers and though we do that,
too, we are also experienced finding loyal candidates that are out there in the talent pool
looking for their forever company. At Talent Logic, we’ve done the hard work for you;
we’ve already met these candidates. Our experienced recruiters have sourced, selected
and screened these exceptional candidates then started them on the process of preparing
for a role with a solid company like yours.

How are we able to do all of this? At Talent Logic, we’re not just a staffing company,
we’re a well-oiled machine. We should be – we’ve been in the business for over 30
years! Not only do we have staffing down to a science, we have a CEO who’s literally
written the book on interviewing candidates and he’s won countless awards for quality
and service. At Talent Logic, speed, efficacy, trust and reliability are the wheels that
drive us. Let us show you how we can drive the right candidate into your permanent
position.

Reasons why you should choose Talent Logic for your Direct Hire needs:

We have access to a wide network and database of candidates

We conduct thorough research and probe into the abilities of prospective employees
We use stringent methods to assess the qualities and attitude sought out by companies
like you
We monitor the entire process of recruitment carefully and diligently to exceed your
expectations
We maintain a bird’s-eye view of prospective candidates and current clients, which
allows us to fill positions quickly, yet accurately
The companies who take advantage of Direct Hire staffing reap the following benefits:

Tension and stress-free recruitment process

Removal of financial risks for their administration
Extra time for their departments to utilize in other areas
Confidence that they’re being presented with the best possible candidate for their
position
46
Guarantee that if they’re not satisfied with their candidate, we’ll find them a suitable
replacement and do it in record time.
Putting quality into our work and having confidence in our candidates is very important
to us at Talent Logic, so we’re certain that you’ll be happy in our hands. The beauty of
direct hiring, through Talent Logic, is that we offer you the luxury of finding the best
candidate for your position without burdening your existing staff. With this approach,
we’ll not only create a positive environment for your candidate to enter, we’ll also
create a surge in productivity within your current staff by taking the pressure of
recruitment off of them. All you have to do is tell us your direct hiring needs and Talent
Logic will customize an effective solution for you.

Direct Hire Staffing, through Talent Logic, is a no-risk solution to small firms and
Fortune 500 companies alike and there’s no request too big or too small. If this scenario
sounds like the staffing solution for you, contact us now to get started

47
Tayi Sudha is a Director as per Ministry of Corporate Affairs (MCA), India. Tayi
Sudha's individual registration number with MCA for Directors is , the Director
Identification Number. To find the list of companies Tayi Sudha is serving or has served
visit Tayi Sudha's Affiliations More details if any in our database relating to Tayi Sudha
.

Vice President
Hilda Roper

Talent Logic, Inc . January 1997 – Present (19 years 9 months)

Spreading the word about who I am - and what my Company can do for you and your
Company- is what I am all about. Finding new accounts is only a part of what I do.
Learning about my Clients requirements is another part. However, the biggest (and best)
part is learning about my Client, their needs, their environment, their goals and
objectives, and how I can update my team (and keep them updated) to ensure that my
Client meets those goals and objectives- consistently. When you have a need for
Staffing- think logic- think Talent Logic!

48
Ave Maria Mutual Funds is a U.S. mutual fund family that targets clients interested in
financially sound investments in companies that do not violate certain religious
principles of the Roman Catholic Church. Often described as socially responsible
investing (SRI), but more accuratedly in the case of Ave Maria Mutual Funds, morally
responsible investing (MRI) or faith-based investing.[citation needed]

Contents [hide]
1 Description
2 Catholic Advisory Board
3 References
4 External links
Description[edit]
According to the fund family prospectus and website, the company screens its
investments first on financial criteria, then eliminates companies involved in the practice
of abortion or whose policies are judged to be anti-family. What constitutes anti-family
practices is based on moral judgments made by the company's Catholic Advisory Board.
Examples cited by the fund family include companies distributing pornography, and
companies with policies that they view undermine the sacrament of marriage.
Involvement with contraception and abortion are some issues that disqualify a company
from the fund, as is embryonic stem cell research. Unlike other ethical funds, however,
it does not reject defense companies, alcohol or tobacco (other common SRI-screened
areas).[1]

The first of its funds was established in 2001. At the end of 2015, the Ave Maria Mutual
Funds had over $1.5 billion in assets under management. Most of that money is invested
in the Ave Maria Rising Dividend Fund (Ticker: AVEDX), the firm's flagship fund, Ave
Maria Catholic Values Fund (AVEMX) and Ave Maria Growth Fund (AVEGX). Other
funds include Ave Maria Bond Fund (AVEFX), and Ave Maria World Equity Fund
(AVEWX). The five Ave Maria Mutual Funds are managed by Plymouth, Michigan
based Schwartz Investment Counsel, Inc. The firm was established in 1980 by George
P. Schwartz, CFA.

Old Mutual plc is an international investment, savings, insurance, and banking group.
Established in 1845 in South Africa, it had more than 16 million customers and £303.8
49
billion assets under management as at 31 December 2015.[1] It is listed on the London
Stock Exchange and is a constituent of the FTSE 100 Index.

Amana Mutual Funds Trust (Ticker symbols: AMANX, AMAGX, and AMDWX),
headquartered in Bellingham, Washington, is a mutual fund
The Amana Income Fund, founded by Unified Management Corporation, Indianapolis,
IN, in 1986, was the Trust’s first fund. The Amana Growth Fund was created in 1994.
The Amana Developing World Fund was created in 2009. All three funds are managed
according to Islamic principles.

Traditional mutual funds are off-limits to Muslims, because they typically contain
securities that are forbidden by sharia law. Accordingly, the Amana Funds are managed
under strict guidelines to comply with Islamic principles. Examples of forbidden
(haram) investments are companies that:

Produce or sell alcohol, tobacco or pornography

Process or sell pork products
Generate revenue from gambling or interest (riba)
Maintain a debt ratio of greater than one-third of assets[1]
The funds were created and are still managed under the value investment style. Nicholas
Kaiser has been portfolio manager of the funds since 1990. Scott Klimo is the deputy
portfolio manager of the funds.[2]

The Amana Funds are unique in that they were specifically conceived to meet the needs
of Muslim investors. One of the reasons Muslims are motivated to save and invest is to
make financial preparations necessary to make the Hajj, a sacred form of a self-
presentation before God (Allah in Arabic) that is considered within Islam to be one of
life's primary duties. In order to make the Hajj, a Muslim must first get his financial
house in order, which presents special challenges if the money is to be invested in
compliance Shari'ah-oriented financial principles. According to Amana's founding
chairman Dr. M. Yaqub Mirza

50
 CHAPTER -4
DATA ANALYSIS AND INTER PRETATION

51
 DATA ANALYSIS & PRESENTION

FUND : TALENLOGIC OPEN-ENDED BALANCED GROWTH

FUND
OBJECTIVE : Aims to invest in equity and debt oriented securities so as to give
investor balanced returns.

TABLE 4.1 PORTFOLIO OF THE FUND (TALENLOGIC)

Sector AUG SEP

2020 2020
A Energy 13.08 12.65
B Finance 14.92 13.92
C Technology 5.12 5.47
D Automobile 4.85 5.31
E Health care 7.08 6.87
F Engineering 5.04 6.86
G Diversified 4.91 4.26
H FMCG 9.06 8.96
I Metals 0.68 1.12
J Services 2.08 0.81
K Constructions 1.08 0.71
L Textiles 0.88 0.60
M Chemicals 1.77 0.77

Note: Reasons for taking two months portfolio details in above mentioned fund are

1. If you observe two months portfolio AUG and SEP, you can see some
differences in values. Reason is Fund Manager will churn portfolio every
month. So asset allocation changes every month. But investor’s units will
be same.

2. Portfolio of equity is 73.58%, but the above portfolio shows less than
73.58% reason, is here I have taken only 13 sectors for every fund. This
will not get any affect for the analysis.

52
Portfolio allocation chart:

FIGURE 4.1 SECTOR WISE CHART (TALENLOGIC )

 The TALENLOGIC Balanced Fund Portfolio consists of 73.58% Equity holdings,
12.16% Debt, 16.68% Money Market. It is evident from the data that though the
investors have risk taking ability, they balanced their investments by investing in
Debt also. The advantage of balanced fund based on market conditions, portfolio
allocations can decrease to 50% also. It is evident that fund manager is bullish side
on market.
FUND : BIRLA OPEN-ENDED BALANCED GROWTH FUND

53
OBJECTIVE : The Scheme aims to balance income requirements with growth of
capital through balanced mix of investment in equity and debt. 

TABLE 4.2 PORTFOLIO OF THE FUND (BIRLA)

Sector AUG 2020 SEP

2020
A Finance 13.08 14.55

B ENERGY 8.07 10.07

C HEALTH CARE 7.85 6.70

D TECHNOLOGY 10.08 8.98

E ENGINEERING 4.82 5.45

F DIVERSIFIED 8.20 5.20

G METALS 1.08 2.19

H AUTOMOBILES 3.81 2.79

1.73
0.73

KC
OM
MU
NIC
ATI
ON
1.08
1.77
I
CHEMICALS

54
 FIGURE 4.2 PORTFOLIO ALLOCATION CHART (BIRLA)

 The BIRLA Balanced Fund Portfolio consists of 63.64% Equity holdings, 25.44%

Debt, 10.92% Money Market. It is evident from the data that though the Investors

have risk taking ability, they balanced their investments by investing in Debt also.

Here fund manager, behaving portfolio very conservatively, so equity proportion

selected less when compare to remaining four funds.

55
FUND : PRU ICICI OPEN-ENDED BALANCED GROWTH FUND
OBJECTIVE : Aims to invest in equity and debt oriented securities so as to give
investor balanced returns.  

TABLE 4.3 PORTFOLIO OF THE FUND(ICICI)

Sector AUG SEP
2020 2020
A FINANCIAL 14.81 15.39

B TECHNOLOGY 8.81 6.79

C Automobile 10.08 8.78

D Energy 9.21 8.85

E Health care 5.82 6.73

F Engineering 5.61 4.72

G Fmcg 8.72 6.13

H Diversified 1.08 1.34

I Services 4.08 5.19

J Communication 3.02 2.67

K Metals 2.08 3.82

56
 FIGURE 4.3 PORTFOLIO ALLOCATION CHART(ICICI)

 The Pru ICICI Balanced Fund Portfolio consists of 70.4% Equity holdings, 17.83%

Debt and 11.77% others. It is evident from the data that though the fund manager is

taking high risk even in balanced fund for this particular period. And at the same

time have given priority to debt and other safety investment products.

57
FUND: DSP BLACK ROCK OPEN-ENDED BALANCED GROWTH FUND

OBJECTIVE : Seeks to generate long term capital appreciation and current income

from a portfolio constituted of equity and equity related securities as well as fixed

income securities.  

TABLE 4.4 PORTFOLIO OF THE FUND(DSP BLACK ROCK)

Sector AUG SEP

2020 2020
A Financial 14.08 13.20
B Energy 8.21 9.69
C Technology 7.08 6.80
D Engineering 6.81 6.09
E Health care 6.08 5.16

F Fmcg 6.01 5.83

G Services 4.86 5.01
H Automobile 2.85 3.70
I Chemicals 3.85 3.10
J Construction 2.08 3.29
K Diversified 4.08 5.81

58
FIGURE 4.4 PORTFOLIO ALLOCATION CHART ( DSP BLACK ROCK)

 The DSP Black Rock Balanced Fund Portfolio consists of 73.69% Equity holdings,

24.29% Debt, 2.02% Money Market. It is evident from the data that though the

Investors have risk taking ability more here also, their investment is not getting

balanced properly, so risk element is there.

59
FUND : JM FINANCIAL OPEN-ENDED BALANCED GROWTH FUND

OBJECTIVE : Aims to provide investors with liquidity and current income along with

capital appreciation. 

TABLE 4.5 PORTFOLIO OF THE FUND (JM FINANCIAL)

Sector AUG SEP

2020 2020
A Energy 8.03 7.67

B Automobile 14.01 14.79

C Diversified 8.01 7.47

D Metals 12.86 11.86

E Engineering 8.44 6.44

F Technology 9.63 8.50

G FMCG 9.61 7.64

H Construction 6.01 4.16

Aug-16 Sep -16

60
 FIGURE 4.5 PORTFOLIO ALLOCATION CHART (JM FINANCIAL)

 The JM Balanced Fund Portfolio consists of 70.58% Equity holdings, 22.49% Debt,

6.93% Money Market. It is evident from the data that though the Investors have risk

taking ability, they balanced their investments by investing in Debt also. When

compare to last year portfolio, fund manager has taken less exposure towards

equity , so it’s clearly understanding that fund manager is aggressive on equity

markets.

TABLE 4.6 TALENLOGIC OPEN-ENDED BALANCED GROWTH FUND

DATE 1st AUG 1st 1ST 1ST 1ST 1ST 1ST 1ST 1ST
2018 JULY OCT JAN AUG JULY OCT JAN AUG
2019 2019 2019 2019 2019 2019 2020 2020

NAV 44.0946 60.79 68.87 75.35 76.67 78.60 86.70 86.17 82.67

 Fund performance and NAV values over a period of 1 year.

61
FIGURE 4.6 FUND PERFORMANCE (TALENLOGIC)

62
 TABLE 4.7 BIRLA OPEN-ENDED BALANCED GROWTH FUND

DATE 1st 1st 1ST 1ST 1ST 1ST 1ST 1ST 1ST
AUG JULY OCT JAN AUG JULY OCT JAN AUG
2018 2019 2019 2019 2019 2019 2019 2020 2020

NAV 120.92 201.90 232.51 253.81 255.14 256.39 296.86 289.47 260.69

 Fund performance and NAV values over a period of 1 year

FIGURE 4.7 FUND PERFORMANCE (BIRLA)

63
TABLE 4.8 Prudential ICICI OPEN-ENDED BALANCED GROWTH FUND

 Fund performance and NAV values over a period of 1 year.

DATE 1st 1st 1ST 1ST 1ST 1ST 1ST 1ST 1ST
AUG JULY OCT JAN AUG JULY OCT JAN AUG
2018 2019 2019 2019 2019 2019 2019 2020 2020

NAV 36.13 48.06 55.79 60.05 60.25 62.35 70.11 69.16 66.39

FIGURE 4.8 FUND PERFORMANCE (ICICI)

64
TABLE 4.9 DSP MERRILL LYNCH OPEN-ENDED BALANCED GROWTH
FUND

 Fund performance and NAV values over a period of 1 year.

DATE 1st AUG 1st 1ST 1ST 1ST 1ST 1ST 1ST 1ST
2018 JULY OCT JAN AUG JULY OCT JAN AUG
2019 2019 2019 2019 2019 2019 2020 2020

NAV 27.10 34.38 38.21 40.28 41.6 42.21 46.97 47.57 46.43

FIGURE 4.9 FUND PERFORMANCE (DSP BLACK ROCK)

65
TABLE 4.10 JM FINANCIAL OPEN-ENDED BALANCED GROWTH FUND

 Fund performance and NAV values over a period of 1 year.

DATE 1st 1st 1ST 1ST 1ST 1ST 1ST 1ST 1ST
AUG JULY OCT JAN AUG JULY OCT JAN AUG
2018 2019 2019 2019 2019 2019 2019 2020 2020

NAV 14.03 20.32 21.89 21.80 21.50 23 25.04 24.30 23

FIGURE 4.10 FUND PERFORMANCE (JM FINANCIAL)

66
 PERFORMANCE EVALUATION

We are interested in discovering if the management of a mutual fund is

performing well; that is, has management done better through its selective buying and
selling of securities than would have been achieved through merely “buying the market”
picking a large number of securities randomly and holding them throughout the period?

One of the most popular ways of measuring management’s performance is by

comparing the yields for the managed portfolio with the market or with a random
portfolio.

The following formula can be used to evaluate Mutual fund performance:-

NAVt + Dt
1
NAVt – 1

Where:

NAV t = per-share net asset value at the end of year t

Dt = Capital appreciation during two years.
NAV t-1 = per-share net asset value at the end of the previous year.

67
 PERFORMANCE EVALUATION OF SELECTED FUNDS

NAV t-1 = 1st October 2011

NAVt= 30th September 2014

1) TATA Open-Ended Balanced growth Fund

NAV t-1 NAV t D t (NAV t NAV t-1)

44.09 82.67 38.58

Applying the formula we get

= 38.58
44.09
= 0.875 x 100
= 87.5 %

2) BIRLA Open-Ended Balanced growth Fund

NAV t-1 NAV t D t (NAV t NAV t-1)

120.92 260.69 139.77

Applying the formula we get

= 139.77
120.92
= 1.155 x 100
= 115%

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 3) Pru ICICI Open-Ended Balanced growth Fund

NAV t-1 NAV t D t (NAV t NAV t-1)

27.10 46.43 19.33

Applying the formula we get-

= 19.33__
27.10
= 0.71x 100
= 71%
4) DSP MERRILL LYNCH Open-Ended Balanced growth Fund

NAV t-1 NAV t D t (NAV t NAV t-1)

36.13 66.39 30.26

Applying the formula we get-

= 30.26__
36.13
= 0.837x 100
= 83.7%

5) JM FINANCIAL Open-Ended Balanced growth Fund

NAV t-1 NAV t D t (NAV t NAV t-1)

14.03 23 8.97

Applying the formula we get-

= 8.97__
14.03
= 0.639x 100
= 63.9%

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 TABLE 4.11 FUND PERFORMANCE RANKING

Name of the Fund Returns Rank

BIRLA open-ended Balanced Growth Fund

115% 1

TATA open-ended Balanced Growth Fund

2
87.5%

DSP Black Rock Balanced Growth Fund 3

83.5%

Prudential ICICI open-ended Balanced Growth Fund

71% 4

JM financial open-ended Balanced Growth Fund 63.9% 5

70
 CHAPTER -5
SUMMARY,CONCLUSION AND FINDINGS

71
 SUMMARY AND CONCLUSIONS

FINDINGS

 According to the study the customers give their first priority to safety of
investment.

 Most of the people are not aware of mutual funds.

 People are still feeling that in mutual fund there is no safety.

 Most of the people depending on other sources like chit funds, banks, and post
offices etc. investors in mutual funs are very less.

 Mutual funds simplifies investors investment experience and allows him to

depend on the expertise and experience of professional money managers freeing
up his time to be used for more enjoyable pursuits.

 Mutual funds generally invest in stocks, bonds and money markets.

 Most people are busy with work and family, and don’t have the time to properly
make everyday decisions with their portfolio.

 The equity schemes perform very well compared from inception to last one year.
Debt schemes is also perform well but not good because the interest rates are
falling in market. This is the main reason

72
 SUGGESTIONS

These suggestions are based on the findings and observations

 They need to create more awareness about mutual funds through indoor and
outdoor media like television, newspaper, journals and magazines

 More aggressive marketing strategies need to be adopted too make customers

aware of the various products.

 All the investor need to be explained about the risk and return that exists with
the investment plan.

 A lot of focus should be on the promotional activates

 The minimum investment size should be reduced so as to attract customers to

invest in large numbers.

 They should attract the people by explaining about the benefits of investing in
mutual funds.

73
 CONCLUSION

The information in this project report will provide the investors the basic knowledge

about Mutual Funds and enable them to choose the best investments suiting their

risk/return profile. Basing on the information in this project, recommendations made to

investors are as follows:-

Mutual funds provide regular and steady income to investors. Systematic investment

plan in Mutual Funds is the best tool for sound investment to small investors who prefer

investments in installments. Liquidity, transparency, well regulated and flexibility are

some of the features of Mutual funds which is very advantageous to investors. The entry

load and exit load in Mutual Funds is very low which does not affect the ultimate yields.

Safety of funds & positive rate of return over inflation are the basic two needs of

traditional investor. Mutual Fund is well equipped to cater to these basic desires of

investors.

74
 BIBLIOGRAPHY

BOOKS

S.NO TITLE OF NAME OF THE PUBLISHERS EDITION YEAR

BOOK AUTHOR

Security Donald E. Fisher Himalaya 3rd

1 analysis and & Publishing edition 2014
Portfolio Ronald J. Jordan House(New
Management Delhi)
Himalaya 1st
2 Financial Publishing edition 2011
Gardon.
Markets and House(New
Natarajan
Services Delhi)
Publishing House 4th
3 Financial I M Pandy, pvt.ltd.New Delhi edition 2014
Management
Tata Mc Graw- 5th
4 Financial Hill edition 5th
Prasanna
Management Publishing Co. edition
Chandra
Ltd
New Delhi
Essentials of Institute of 2rd
5 Investment & Chartered edition 2011
N.J. Yasaswy
Tax Planning Financial Analysts
of India

WEBSITES

S.NO WEBSITES

1 http://www.zensec.com

2 http://www.pruicici.com

3 http://www.vaiucrcsearchonlinc.com

4 http://www.mutuaifandindia.com

75