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HISTORICAL RETURNS OF MUTUAL FUNDS IN INDIA AND U.S.A.

BY SUPRIYA SALGAONKAR (B43) SOUMYA RAMANAN(B41)

What is Mutual Funds?


Mutual funds are investment companies that pool money from investors at large and offer to sell and buy back its shares on a continuous basis and use the capital thus raised to invest in securities of different companies

Started in 1963 History of mutual funds can be broadly divided into four phases : First phase : 1964-1987 Second phase : 1987-1993 Third phase : 1993-2003 Fourth phase : 2003

Brief of how Mutual fund works


Open ended Close ended MFs get their earnings in two ways : Dividend : Redemption of shares Valuation of Mutual Fund

PERFORMANCE MEASURES OF MUTUAL FUNDS:


The most important and widely used measures of performance are: The Treynors Measure The Sharpe Measure Jenson Model Fama Model

What is NET ASSET VALUE ?


The Term Net Asset Value (NAV) is used by investment companies to measure net assets. It is calculated by subtracting liabilities from the value of a fund's securities and other items of value and dividing this by the number of outstanding shares. Investments trusts can trade at net asset value or their price can be at a premium or discount to NAV.

Calculating NAVs
Take the current market value of the fund's net assets (securities held by the fund minus any liabilities) and divide by the number of shares outstanding. So if a fund had net assets of Rs.50 lakh and there are one lakh shares of the fund, then the price per share (or NAV) is Rs. 50.00

Top 10 Funds of India Period (Last & NBSP 6 Months)


Rank Scheme Name Date NAV (Rs.) Last 6 Months %

1 2 3 4

Kotak PSU Bank ETF PSU Bank Benchmark Exchange Traded Scheme Reliance Banking Fund - Growth ING Global Real Estate Fund - Institutional - Growth

Sep 1 , 2010 Sep 1 , 2010 Sep 1 , 2010 Aug 31 , 2010

449.4312 435.3944 100.8503 10

37.584 37.4631 33.7486 29.7017

5 6 7

ICICI Prudential FMCG - Growth Franklin FMCG Fund - Growth Sundaram BNP Paribas Financial Services Opportunities Fund - Retails Growth

Sep 1 , 2010 Sep 1 , 2010 Sep 1 , 2010

65.03 66.0294 20.2351

29.5418 29.2547 28.7351

8 9

Religare Mid N Small Cap Fund - Growth Canara Robeco FORCE Fund - Institutional - Growth

Sep 1 , 2010 Sep 1 , 2010

14.96 13.76

28.6328 28.5981

10

Canara Robeco FORCE Fund - Retail - Growth

Sep 1 , 2010

13.74

28.5313

Indias top Fund Performance(%) as on Sep 1, 2010


Fund Name 1 mo Return 9.91 9.87 3 mo Return 25.96 25.92 6 mo Return 1 yr Return 65.90 64.52

Kotak PSU Bank ETF

37.58 37.46

PSU Bank Benchmark Exchange Traded Scheme

Reliance Banking Fund - Growth

6.44 0.00

21.05 0.00

33.75 29.70

59.57 28.21

ING Global Real Estate Fund Institutional - Growth

ICICI Prudential FMCG - Growth

4.60

22.05

29.54

41.96

Franklin FMCG Fund - Growth

4.01

19.75

29.25

51.47

1 month NAV Chart of Kotak PSU Bank ETF fund

Latest NAV 52 - Week High 52 - Week Low

449.43 as on Sep 1, 2010 459.70 as on Aug 26, 2010 271.40 as on Sep 3, 2009

1 month NAV Chart of PSU BANK BEES

Latest NAV 52 - Week High 52 - Week Low

435.39 as on Sep 1, 2010 445.32 as on Aug 26, 2010 269.74 as on Sep 3, 2009

1 month NAV Chart of Reliance Banking Fund Growth

Latest NAV 52 - Week High 52 - Week Low

100.85 as on Sep 1, 2010 103.07 as on Aug 23, 2010 63.11 as on Sep 3, 2009

1 month NAV Chart of ING Global Real Estate Fund - IP - Growth

Latest NAV 52 - Week High 52 - Week Low

10.00 as on Aug 31, 2010 10.00 as on Apr 15, 2010 7.41 as on Feb 9, 2010

1 month NAV Chart of ICICI Prudential FMCG - Growth

Latest NAV 52 - Week High 52 - Week Low

65.03 as on Sep 1, 2010 65.15 as on Aug 19, 2010 45.65 as on Sep 3, 2009

Scheme Name

Date

NAV

Thursday, July 29, 2010

62.3500

Friday, July 30, 2010

62.1700

Monday, August 02, 2010 ICICI Prudential FMCG - Growth Tuesday, August 03, 2010

63.0500

62.9200

Wednesday, August 04, 2010

63.0900

Thursday, August 05, 2010

63.2400

USAs Top Performers of Mutual funds - 6 Months Fund Name Rydex 2x Russell 2000 Rydex 2x S&P MidCap 400 Direxion Daily 30 Yr Trsy Bull 3X Shares iPath DJ-UBS Coffee TR SubIdx ETN Rydex 2x S&P Select Sector Financial Barclays Short D Lvgd Inv S&P 500 TR ETN iPath DJ-UBS Sugar TR SubIdx ETN Rydex 2x S&P Select Sector Technology PowerShares DB Crude Oil Dble Short ETN ProFunds UltraShort Japan Inv Symbol RRY RMM TMF JO RFL BXDD SGG RTG DTO UKPIX Return 41.22% 36.89% 30.43% 29.16% 28.70% 28.09% 27.88% 24.61% 24.18% 23.92%

Market Return of Top Mutual funds of USA


Fund Name Ticker 3 mo Return (Mkt)
YTD Return (Mkt)

1 yr Return (Mkt)

Rydex 2x Russell2000 Rydex 2x S&P MidCap 400

RRY RMM

6.00% 7.97%

40.42%

40.42% 66.29%

66.29%

Direxion Daily 30 Yr Trsy Bull 3X Shares

TMF

49.53%

47.02%

24.19%

iPath DJ-UBS Coffee TR Sub-Idx ETN Rydex 2x S&P Select Sector Financial

JO

18.50%

16.79%

26.56%

RFL

7.85%

11.76%

11.76%

iPath DJ-UBS Sugar TR Sub-Idx ETN

SGG

6.95%

40.77%

17.24%

Rydex 2x S&P Select Sector Technology

RTG

21.63%

121.36%

121.36%

PowerShares DB Crude Oil Dble Short ETN

DTO

27.56%

14.22%

2.58%

NAV return of Top Mutual funds of USA

Fund Name

Ticker

3 mo Return (NAV)

YTD Return (NAV)

1 yr Return (NAV)

Rydex 2x Russell2000 Rydex 2x S&P MidCap 400

RRY RMM

6.20% 9.83%

42.40% 68.35%

42.40% 68.35%

Direxion Daily 30 Yr Trsy Bull 3X Shares iPath DJ-UBS Coffee TR Sub-Idx ETN

TMF

49.66%

46.02%

24.29%

JO

19.07%

17.46%

26.96%

Rydex 2x S&P Select Sector Financial

RFL

(8.43%)

(13.06%)

(13.06%)

iPath DJ-UBS Sugar TR Sub-Idx ETN

SGG

(6.33%)

(41.06%)

(17.25%)

Rydex 2x S&P Select Sector Technology PowerShares DB Crude Oil Dble Short ETN

RTG

20.53%

110.62%

110.62%

DTO

28.21%

12.86%

1.15%

Historical NAV of Rydex 2x Russell 2000 (RRY)


Date Aug 10 Jul 10 Jun 10 May 10 Apr 10 Mar 10 Feb 10 Jan 10 Dec 18, 2009 Dec 09 Nov 09 Oct 09 Sep 18, 2009 Sep 09 Aug 09 Jul 09 28.19 27.47 26.84 33.83 30.10 27.43 29.50 27.44 31.20 34.53 31.33 33.61 Open 35.28 35.28 35.28 44.12 39.89 34.31 31.15 34.46 High 35.28 35.28 35.28 45.57 47.37 40.93 34.26 35.98 Low 35.28 35.28 35.28 25.00 39.22 34.28 28.70 30.71 Close 35.28 35.28 35.28 35.28 43.55 39.19 33.54 30.97 Avg Vol 0 0 0 93,300 52,400 62,000 36,200 46,800 Adj Close* 35.28 35.28 35.28 35.28 43.55 39.19 33.54 30.97

$ 0.033 Dividend 29.17 26.30 26.85 33.39 28.75 27.11 27,900 43,300 67,600 33.39 28.72 27.08

$ 0.023 Dividend 26.39 25.88 26.79 31.53 28.39 27.05 60,800 56,100 77,600 31.50 28.34 27.00

Comparison of Rydex 2x Russell 2000 (RRY) with NASDAQ & S&P500

Historical NAV of Direxion Daily 30 Yr Trsy Bull 3X Shares (TMF)

Date Aug 10 Jul 10 Jun 22, 2010 Jun 10 May 10 Apr 10 Mar 10 Feb 10 Jan 10 Dec 22, 2009 Dec 09 Nov 09 Oct 09 Sep 22, 2009 Sep 09 Aug 09 Jul 09

Open 42.35 45.65

High 56.65 47.03

Low 41.37 40.29 $ 0.22 Dividend

Close 53.19 43.64

Avg Vol 100,000 56,800

Adj Close* 53.19 43.64

40.24 33.11 30.10 32.53 33.08 31.06

45.48 43.28 33.60 33.10 33.80 33.72

37.20 29.00 28.57 29.26 29.56 29.90

45.41 39.11 33.56 30.52 32.88 33.49

39,500 61,800 49,000 33,000 34,300 32,000

45.41 38.89 33.37 30.35 32.70 33.31

$ 0.282 Dividend 38.54 42.50 47.75 38.64 42.74 49.97 30.23 36.41 39.56 31.20 39.40 42.55 43,500 24,900 36,100 31.03 38.84 41.95

$ 0.317 Dividend 43.34 41.46 40.20 47.53 44.27 41.70 39.51 35.50 39.57 46.99 44.07 41.64 42,400 38,300 121,000 46.33 43.13 40.75

Comparison of Direxion Daily 30 Yr Trsy Bull 3X Shares (TMF) with NASDAQ & S&P500

Comparison of ProFunds UltraShort Japan (UKPIX) with S&P500