CHAPTER-1

EXECUTIVE SUMMARY:-

The project work is pursued as a part of MBA (FINANCE) Curriculum at LOVELY PROFESSIONAL UNIVERSITY, JALANDHAR. It is undertaken as a traineeship at Reliance securities Ltd. The project is done under expert supervision and guidance of prof. Miss Razia sehdeva (Lecturer Finance) and Mr SANTOSH JHA (Centre Manager, Reliance Securities under Reliance capital) the project is about the marketing and sales of financial products and also the efforts done to make improvements in the customer acquisition process for better results.

At RELIANCE SECURITIES, initially the trainees were imparted process and product knowledge. They were given sufficient time to know about the products such as demate and trading A/C, Equity, ADB, Life insurance, Mutual fund, Structure product, currency, Terminal portal also about sales and distribution channel, They had to work with the sales representatives of the Distributor and think of ways of improving the sales and distribution channel and implementing them.

The main aim was to increase the marketing actual knowledge, interact to customer and pitch the product, and learn about the customer need and demand about the customer, also gain the financial product knowledge and deeply stock market knowledge. And learn briefly about those parameters and ratio which basis we choose the mutual fund scheme. For the study of selection of mutual fund schemes we are 5 different companies schemes and evaluate those on such parameter, CAGR, Standard deviation, Beta, Sharpe ratio on the basis of historical data. And after interpretation and finding result basis we come this stage where you can select the final fund.

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OBJECTIV OF STUDY:-

Practical-work is very important in any professional-course it I well known that any professional- course give only 20% knowledge throw rest of 80% we got from practical tanning which concluded with the submission of PROJECT REPORT is an important part of professional course. But we cant avoid the importance of theoretical part of the course, because without knowledge of theory not perfect s for practical. Theory provide the base of the knowledge

As a student of management I have also been strongly convened with the above concept of study. I also support that sound theoretical knowledge and good practical work both are the pillar of the profession. Before the tanning we have only theoretical knowledge which we cant say complete knowledge.

The main aim was to increase practical knowledge and face the actual problem of market where how implement our theoretical knowledge. They were provided with database and had to make cold calls from the data. Company activity was also one of the major sources for generating business. Initially they even accompanied sales representatives to the clients place. Main objective was to know the need of the customer and how to fulfil that in the best way.

Objective of the study of key parameters and ratio to select the mutual fund scheme is evaluate the fund on scheme which give the good return to the investor. Investor are interested to know about the different type of return and risk. Being a student of financial management my main aim and basic objective of study key parameters and ratio was following:-

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1) To know about the profit earnings ratio of investment. 2) To know about the risk of the fund. 3) Compare the different mutual fund. 4) Evaluate the ratio of profit earning. 5) To know about the different opportunity of investment in mutual fund.

SCOPE OF THE STUDY:-

The scope of the study refers to the job that to know about the activities of the organization. The study means that the analysis of the products of the company on which basis investor selects the scheme. During the summer training the volunteer need to find out the corporate strategies of the running company and the mile stone which the company has covered during its journey. In the summer training, it is necessary for the student that he involve with the experience guys to get the knowledge about the company.

That is how the company has got the success, Or if it is going in the loss, why. In my training period I have found that the reliance group is the biggest group in Indian companies. I felt that I can learn the more in the

METHDOLOGY USED:- A sample of 5 scheme each from 3 different type of

fund taken are follows: Diversified fund, Large CAP fund, Sector fund analysis has been done by using following statistical tools: Sharpe ratio, Beta, standard deviation and return basis. To make a project work successful following aspect are required:1. A sound theoretical knowledge of the subject of the mutual fund. 2. Select the data from the historical data as a sample for knowledge. 3. And on the basis of the parameters and ratio analyse select the scheme.

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SIGNIFICANCE: Able to learn the various analytical tools of Mutual Fund like Beta, Standard Deviation, Compounded annual growth rate (CAGR) and Sharp Ratio. Get complete overview of Mutual Fund industries in India. Able to know the past performance of various Mutual Funds Schemes.

LIMITATIONS:
Not single work is an exception to the limitation every work has got it limitations. The data collected here in this project is strictly confined to the secondary sources. No primary data was associated with the project. Collecting historical NAV and various details is very difficult. Selection of the schemes for the study is very difficult task because wide variety schemes. The result of the study are subjected to inconsistencies arising out of the assumption to make the portfolio comparable viz sample selection procedure, portfolio proportion assumption etc.

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ON-JOB-TRAINING INTRODUCTION
I have been done my summer internship in Reliance Securities Private Limited to perform various activities undertaken by an E broking firm (Depository Participant).

OBJECTIVE
Reliance Securities Pvt. Ltd. Performs as intermediary between stock exchange and clients. Various task related to e broking has been assigned to me.

The main objectives are as follows: To understand various activities in E-Broking firm. (D P). To get familiar with the working of online trading. To gain practical knowledge in share trading. To get an exposure

TASK ASSIGNED

Market observation Customer acquisition. Technical Issues Administrative tasks Customer follow-up

MARKET OBSERVATION
It was the basic task assign during the SIP. While working with an e broking firm it very essential to be aware about the current market issues like current market news, Current market position, stock watch, global market condition, past trend of the market etc. It was also imperative to target particular stocks & track their daily movements. By targeting & tracking individual stocks & scripts, it helped me understand the various factors that lead to stocks price movements. Also taking with clients during market hours helped me to understand the investment psychology of the client.

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CUSTOMER ACQUISITION
To acquire new customers for the company it was the task given to me. 2 new Demat accounts, 5 MGP account have been opened in this duration.

Strategy in acquiring new customers

Reference by existing customers. Lead by company guide Tele calling (by lead data) Cold callings

TECHNICAL TASKS
Various technical tasks has been performed like, software down loading, to give software demonstration to the clients, solving various problems of the clients regarding software handling etc.

ADMINISTRATIVE TASK
These were the secondary task given bellow, which has been performed during the training period. Completion of account opening form. Collection of requires documents from existing clients. Margin funding form. To transfer shares.

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CUSTOMER FOLLOW-UP
Follow-up has been given to newly acquire as well as existing clients for various issues. Trading for offline clients under the relationship managers guidance. To give markets updates to newly acquire as well as existing clients in market duration, etc.

ACHIEVEMENTS
Stock Market observation has been done during internship period. 2 new clients have been acquired. Companies trading software has been downloaded. Software demonstration has been given to newly acquire as well as existing clients. Various administrative activities have been performed. Follow-up to the customer has been given. Company generated brokerage from the newly acquired customer by me during the internship period. Offline customers orders have been taken in regular market schedule.

LIMITATIONS
It was hard to acquire knowledge about this field in such short span of time Share market is very vast & fast sector, it was very difficult to cope-up with the environment in such short span of time. This field is requiring with very deep fundamental & technical knowledge. Acquiring new clients it was the tough task to perform. High risk involve while trading on behalf of the clients under the guidance of RM.

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CONCLUSION
Learning Experience:

In my summer training, I knew about the stock market and its nitty-gritty. And now I am confident about equity knowledge. Although nobody can claim complete expertise but there is a sea change at least from our point of view. I have learnt what are the various indices and their significance in market. I have learnt about various fundamentals and technical aspects, which affect the stock prices in short run and long run.

Selling Experience:

Apart from this my specific task is to sell the Demat accounts. During this venture I came across many people who came from different walks of life. I learnt how to deal with them, how to persuade them and guide them in trading.

Selling an online trading account requires special focus on targeting the customers. Each and every person does not trade / invest in the stock market. Actually what I had to do was to identify the prospect and then convince them.

As we met more and more people, we came to know more about how to talk to them, how much time be given to each person we met. Even, by solving the customer queries, my own understanding was enhanced.

While selling the product in the market, I also came to know more about competitors product like, icicidirect.com, India bulls and their strategy of marketing and the consumers preference towards the competitors product.

After forms were filled clients after the procedures were given client Id. After that, I was required to show the customer how to make a transaction and how to get access to the

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terminal. Also, other queries, which the customer faced, had to be solved by us. So, it was all a very good learning experience for me.

There were senior trainees always to solve the difficulties I faced in approaching a customer, filling up the form, demonstrating the site, or solving their queries.

I faced some bad and resentful experiences like being sent out of offices and waiting for hours for a customer and went to the customer again in case if a signature is left in the form or in occurrence of any proof problems. This was again a learning to increase my tolerance and be more careful while filling up the form.

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CHEAPTER 2

INTRODUCTION:Mutual fund: An openended fund operated by an investment company

which raises money from shareholders and invests in a group of assets, in accordance with a stated set of objectives. Mutual funds raise money by selling shares of the fund to the public, much like any other type of company can sell stock in itself to the public. Mutual funds then take the money they receive from the sale of their shares (along with any money made from previous investments) and use it to purchase various investment vehicles, such as stocks, bonds and money market instruments.

In another words we can say thats a mutual fund is a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. The mutual fund will have a fund manager who is responsible for investing the gathered money into specific securities (stocks or bonds). When investors invest in a mutual fund, they are buying units or portions of the mutual fund and thus on investing becomes a unit holder of the fund.

Mutual funds are considered as one of the best available investments as compare to others they are very cost efficient and also easy to invest in, thus by pooling money together in a mutual fund, investors can purchase stocks or bonds with much lower trading costs than if they tried to do it on their own. But the biggest advantage to mutual funds is diversification, by minimizing risk & maximizing returns.

Mutual funds are set up to buy many stocks. Beyond that, investors can diversify even more by purchasing different kinds of stocks which helps to spreading out investors money across

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different types of investments and hence, reduces risk tremendously up to certain extent. It could take you weeks to buy all these investments, but if you purchased a few mutual funds you could be done in a few hours because mutual funds automatically diversify in a predetermined category of investments.

CONCEPTUAL FRAME WORK OF MUTAL FUND:-

A mutual fund is constituted as a public trust created under the Indian Trust Act, 1882. SEBI (mutual fund) regulations, 1996 regulate the structure of the mutual funds in India. As per these regulations should have the following three-tier structure:

i) Sponsor ii) Trust/trustee iii) Asset Management Company

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Apart from this mutual fund consists

Sponsors:Sponsor is the person who acting alone or in combination with another body corporate establishes a mutual fund. The sponsor establishes the mutual fund and registers the same with SEBI. Sponsor appoints the Trustees, custodians and the AMC with prior approval of SEBI and in accordance with SEBI Regulations. Sponsor must have a 5-year track record of business interest in the financial markets. Sponsor must have been profit making in at least 3 of the above 5 years. Sponsor must contribute at least 40% of the net worth of the Investment Managed and meet the eligibility criteria prescribed under the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996.The Sponsor is not responsible or liable for any loss or shortfall resulting from the operation of the Schemes beyond the initial contribution made by it towards setting up of the Mutual Fund.

Trust:The Mutual Fund is constituted as a trust in accordance with the provisions of the Indian Trusts Act, 1882 by the Sponsor. The trust deed is registered under the Indian Registration Act, 1908.

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Trustee:Trustee is usually a company (corporate body) or a Board of Trustees (body of individuals). The main responsibility of the Trustee is to safeguard the interest of the unit holders and inter alia ensure that the AMC functions in the interest of investors and in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, the provisions of the Trust Deed and the Offer Documents of the respective Schemes. At least 2/3rd directors of the Trustee are independent directors who are not associated with the Sponsor in any manner.

Asset Management Company (AMC)

The AMC is appointed by the Trustee as the Investment Manager of the Mutual Fund. The AMC is required to be approved by the Securities and Exchange Board of India (SEBI) to act as an asset management company of the Mutual Fund. At least 50% of the directors of the AMC are independent directors who are not associated with the Sponsor in any manner. The AMC must have a net worth of at least 10 crore at all times.

Registrar and Transfer Agent

The AMC if so authorized by the Trust Deed appoints the Registrar and Transfer Agent to the Mutual Fund. The Registrar processes the application form, redemption requests and dispatches account statements to the unit holders. The Registrar and Transfer agent also handles communications with investors and updates investor records.

Custodian: A custodian is an agent, bank, trust company, or other organization which holds and safeguards an individual's, mutual funds, or investment company's assets for them.

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TYPES OF MUTUAL FUND SCHEMES

There are a wide variety of Mutual Fund schemes that cater to your needs, whatever your age, financial position, risk tolerance and return expectations. Whether as the foundation of your investment program me or as a supplement, Mutual Fund schemes can help you meet your financial goals.

TYPES OF MUTUAL FUND SCHEME

(AI) By Structure
Open-Ended Schemes These do not have a fixed maturity. You deal directly with the Mutual Fund for your investments and redemptions. The key feature is liquidity. You can conveniently buy and sell your units at Net Asset Value ("NAV") related prices. Close-Ended Schemes Schemes that have a stipulated maturity period (ranging from 2 to 15 years) are called closeended schemes. You can invest directly in the scheme at the time of the initial issue and thereafter you can buy or sell the units of the scheme on the stock exchanges where they are listed. The market price at the stock exchange could vary from the scheme's NAV on account of demand and supply situation, Unit holders' expectations and other market factors. One of the characteristics of the close-ended schemes is that they are generally traded at a discount to NAV but closer to maturity, the discount narrows. Some close-ended schemes give you an additional option of selling your units directly to the Mutual Fund through periodic repurchase at NAV related prices. SEBI Regulations ensure that at least one of the two exit routes are provided to the investor.

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Interval Schemes These combine the features of open-ended and close-ended schemes. They may be traded on the stock exchange or may be open for sale or redemption during predetermined intervals at NAV related prices.

(B) By Investment Objective Growth Schemes

Aim to provide capital appreciation over the medium to long term. These schemes normally invest a majority of their funds in equities and are willing to bear short-term decline in value for possible future appreciation. These schemes are not for investors seeking regular income or needing their money back in the short term.

Income Schemes
Aim to provide regular and steady income to investors. These schemes generally invest in fixed income securities such as bonds and corporate debentures. Capital appreciation in such schemes may be limited. Ideal for Retired people and others with a need for capital Stability and regular income Investor who need some income to supplement their earnings.

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Balanced Schemes
Aim to provide both growth and income by periodically distributing a part of the income and capital gains they earn. They invest in both shares and fixed income securities in the proportion indicated in their offer documents. In a rising stock market the NAV of these schemes may not normally keep pace, or fall equally when the market falls. Ideal for: Investors looking for a combination of income and moderate growth.

Money Market/Liquid Schemes

Aim to provide easy liquidity, preservation of capital and moderate income. These schemes generally invest in safer, short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money. Returns on these schemes may fluctuate, depending upon the interest rates prevailing in the market. Ideal for: Corporate and individual investors as a means to park their surplus funds for short periods or awaiting a more favorable investment alternative.

Other Schemes
Tax Saving Schemes These schemes offer tax rebates to the investors under tax laws as prescribed from time to time. This is made possible because the Government offers tax incentives for investment in specified avenues. For example, Equity Linked Savings Schemes (ELSS) and Pension Schemes. The details of such tax saving schemes are provided in the relevant offer documents.

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Ideal for: Investors seeking tax rebates.

Special Schemes This category includes index schemes that attempt to replicate the performance of a particular index such as the BSE Sensex or the NSE 50, or industry specific schemes (which invest in specific industries) or sectorial schemes (which invest exclusively in segments such as A Group shares or initial public offerings)

Different Modes of Receiving the Income Earned From Mutual Fund Investments

Mutual funds offer three methods of receiving income:

Growth Plan: In this plan, dividend is neither declared nor paid out to the investors but it is built into the value of the NAV. In the other words, the NAV increases over time due to such incomes and the investor realizes only the capital appreciation on redemption of his investment.

Income plan or Dividend Pay-out Plan: In this plan, dividends are paid-out to the investors. In other words, the NAV only reflects the capital appreciation or depreciation in the market price of the underlying portfolio.

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Dividend Reinvestment Plan: In this plan, dividend is declared but not paid out to the investors. Instead, it is reinvested back in to the scheme at the then prevailing NAV. In other words, the investor is given additional units and not cash as dividend.

Mutual Fund Investment Strategies

Systematic Investment Plan (SIP): SIPs entail an investor to invest a fixed sum of money at regular intervals in MF scheme the investor has chosen. This may help you gain from any appreciation in the event of upside or alternatively, average your cost during downside. Seeing the present volatility in the market SIP is the best option available to the investor due to regular entry into the market which causes rupee cost averaging and hence covers the volatility.

Systematic Withdrawal Plan (SWPs): These plans are best suited for people nearing retirement. In these plans investor invest in a mutual fund scheme and is allowed to withdraw a fixed sum of money at regular intervals to take care of expenses.

Systematic Transfer Plan (STP):

They allow the investor to transfer on a periodic basis a specified amount from one scheme to another with in the same fund family meaning two schemes belonging to the same mutual fund. A transfer will be treated as redemption of units from the scheme from which the transfer is made.

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Advantage of mutual fund:

a) Professional Management- The basic advantage fund is that, they are professionally managed by well qualified professional. Investors purchase funds because they have no time or the expertise to manage their own portfolio.

b) Diversification- purchasing units in a mutual fund instead of buying individual stock or bonds, the inventors risk is spread out and minimized up to certain extent. The idea behind diversification is to invest in a large number of assets so that a loss in a particular investment in minimized by gains in others.

c) Economic of scale Mutual fund buy and sell large amounts of securities at time, thus help to reducing transaction costs, and help to bring down the average cost of the unit for their investors.

d) Liquidity- just like an individual stock, mutual fund also allows investors liquidity their holdings as and when they want.

e) Simplicity- investments in mutual fund is considered to be easy, compare to other available instruments in the market, and the minimum investment is small. Most AMC also have automatic purchase plans whereby as little as Rs. 2000, where SIP start with just Rs 50 per month basis.

Disadvantages of mutual fund:

a) Professional Management- some fund dont perform according to market, as their management is not dynamic enough to explore the available opportunity in the market, thus investor loose their money.

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b) Costs- The biggest source of AMC income is generally from the entry & exit load which they charge from investors, at the time of purchase. The mutual fund industries are thus charging extra cost under layers of jargon.

c) Dilution- because fund have small holdings across different companies, high returns from a few investments often dont make much difference on the overall return. Dilution is also the result of successful fund getting too big. When money pours into funds that have had strong success, the manager often has trouble finding a good investment for all the new money.

d) Taxes when making decisions about your money, fund manager dont consider your personal tax situation, for example, when a fund manager sell a security, a capital-gain tax is triggered, which affects how profitable the individual is from the sale. It might have been more advantageous for the individual to defer the capital gains liability.

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History of mutual fund:

Unit Trust of India is the first Mutual Fund set up under a separate act, UTI Act in 1963, and started its operations in 1964 with the issue of units under the scheme US-641. In 1978 UTI was delinked from the RBI and Industrial Development Bank of India (IDBI) took over the Regulatory and administrative control in place of RBI.

In the year 1987 Public Sector banks like State Bank of India, Punjab National Bank, Indian Bank, Bank of India, and Bank of Baroda have set up mutual funds. Apart from these above mentioned banks Life Insurance Corporation [LIC] and General Insurance Corporation [GIC] too have set up mutual fund. LIC established its mutual fund in June 1989.while GIC had set up its mutual fund in December 1990.

The mutual fund industry had assets under management of Rs. 47,004 crores. With the entry of Private Sector Funds a new era has started in Mutual Fund Industry [e.g.:- Principal Mutual Fund.] Mutual Fund Regulations the second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC.

It is registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76, 000 crores of assets under management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking place among different private sector funds, the mutual fund industry has entered its current phase of consolidation and growth. As at the end of September, 2004, there were 29 funds, which manage assets of Rs.153108 crores under 421 schemes.

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CHAPTER -3

COMPANY PROFILE

About the Company

Reliance Securities Ltd (Reliance Securities), a Reliance Capital company is one of the leading brokerage houses and distribution arms of the Reliance Anil Dhirubhai Ambani Group (RDAG). The firm was established in 2005 and offers comprehensive services such as trading in equity, derivatives, investment banking, portfolio management services (PMS), wealth management services (WMS), research & distribution of financial products such as mutual funds, insurance and IPOs among others. Reliance Securities is present in the currency and debt market segment as well.

Company History: Reliance Capital Limited (RCL) was incorporated in year 1986 at Ahmadabad in Gujarat as Reliance Capital & Finance Trust Limited. The name RCL came into effect from January 5, 1995. In 2002, RCL shifted its registered office to Jamnagar in Gujarat before it finally moved to Mumbai in Maharashtra, in 2006.

In 2006, Reliance Capital Ventures Limited merged with RCL and with this merger the shareholder base of RCL rose from 0.15 million shareholders to 1.3 million.

RCL entered the Capital Market with a maiden public issue in 1990 and in subsequent years further tapped the capital market through rights issue and public issues. The equity shares were initially listed on the Ahmadabad Stock Exchange and The Stock Exchange Mumbai. Presently the shares are listed on The Stock Exchange Mumbai and the National Stock Exchange of India. RCL in the initial years engaged itself in steady annuity yielding businesses such as leasing, bill discounting, and inter-corporate deposits. Later, in 1993 diversified its business in the

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areas of portfolio investment, lending against securities, custodial services, money market operations, project finance advisory services, and investment banking.

RCL was accredited a Category 1 Merchant banker by the Securities Exchange Board of India (SEBI). It had lead managed/co-managed 15 issues of an aggregate value of Rs. 400 crore and had underwritten 33 issues for an aggregate value of Rs. 550 crore. All these companies were listed on various exchanges.

RCL obtained its registration as a Non-banking Finance Company (NBFC) in December 1998. In view of the regulatory requirements RCL surrendered its Merchant Banking License.

Market & Network

Reliance Securities acquired memberships of the premium stock exchanges in India, namely BSE and NSE in 2005 and 2006 respectively. It offers trading facilities in the cash and derivatives market segment of both NSE and BSE. The company provides trading in the debt market segment as well. It also acts as a DP with CDSL.

Reliance Securities website www.rsec.co.in also facilitates trading in commodities for its partner company, Reliance Commodities Ltd which holds memberships in NCDEX, MCX and NMCE

Reliance Securities is headquartered in Mumbai with operations across all major Indian cities. Majority of the companys terminals are located in Mumbai. It has a vast network spread across 3,393 cities, with 116 offices, and 2,822 equity broking terminals allocated to 2,943 registered sub-brokers.

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As on Dec 31, 2009, Reliance Securities had 73 NEAT terminals, 40 BOLT terminals and 2,709 CTCL licenses. During the same period, the company added 1, 84, 550 client accounts of which 1, 82,720 were e-broking accounts.

Products and Services

Trading: Reliance Securities facilitates trading activities in all the major market segments including, cash, derivatives, and debt, currency futures. The company offers online trading facility through its website, www.rsec.co.in. Reliance Securities has recently migrated all its customers to its new trading platform, Insta Plus and Insta Express.

Apart from internet trading, customers are also provided with the option of trading through the Call & Trade facility and through RSec.mobi, a personal mobile phone service. Clients can place and track their orders on BSE and NSE on a real time basis with access to RSec.mobi. This facility is available to Reliance Securities trading account holders across all mobile platforms independent of device, operator and the underlying carrier technology.

Investment Banking: Reliance Securities also offers Investment Banking services.

Distribution of Financial Products: Reliance Securities is involved in the distribution of financial products such as mutual funds, insurance and IPOs.

DEMAT Services:

The company offers DEMAT services through Reliance Capital and is a

registered member with NSDL and CDSL.

PMS: Reliance Securities is a SEBI registered portfolio manager and offers customized services to their client which is designed to meet their investment objectives.

These services cover all administrative aspects while providing periodic reporting to clients.

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WMS: The Company makes available Wealth Management Solutions to its customers

Research: Reliance Securities offers research based services to its clients. Its research wing encompasses 100 companies across 20 sectors. This division offers complete research solutions on IPOs, mutual funds, economic research and other special reports and newsletters.

Insurance: Reliance Securities also provides a range of insurance products including life insurance and general insurance through Reliance Composite Insurance Broking.

NRI Services: NRI clients can place orders using the new their trading platform such as Insta plus and Insta Express. NRIs can execute their securities transactions under the provisions of the RBI guidelines for NRI Portfolio Investment Scheme (PIS).

FUTURE PLAN:-

PLAN FOR CHILDRENS FUTURE: Children future planning is all about arranging a corpus to meet known expenses like there higher education & wedding. Childrens education & marriage is amongst the most important goal in our life.

If cost of higher education e.g. MBA is Rs. 5 lakh today, After 18 years when your child is ready to pursue higher education, the same higher education will cost you Rs. 14.27 lakhs

Our innovative tool will help you to find out Whether your current savings set aside for this goal are sufficient enough to meet these goals or

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 How much additional amount you need to save & invest to achieve these goals.

CALCULATE YOUR SAVINGS:

Systematic Investment Planning (SIP) may get complicated if you have just lost track, with our SIP Calculator, calculate NAV, number of units purchased, SIP Value & Index Value, all in a bifurcated systematic manner.

ASSET PURCHASE GOAL: Owning your own house / car, whether its your first one or the one which you have dreamt of, can create a great sense of pride and accomplishment. Accomplishing of these goals requires planning. You should plan for these goals early. Our innovative tools will help you to plan for these goals.

LIVE COMFORTABLY POST RETIREMENT:

Dying too early is a risk & living too long is another risk. Retirement planning cater to the latter. People generally think of retirement planning as distant future goal however it is important to understand that this goal cannot be deferred for long. It is important to plan for your post retirement due to shift to nuclear families & knowing that longevity is on increasing side.

You need to know What is the corpus required to meet your post retirement expenses? Whether your current savings set aside for retirement is sufficient enough to meet that corpus? How much additional amount you need to save & invest to achieve that corpus?

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COMPARE FUNDS FOR BETTER INVESTMENTS: There are a number of Mutual Funds available, confused which one to buy? With Reliance Securities Fund Compare Tool, you can now compare various available funds and invest in the best one suited for you.

Success sutras of Reliance securities.

The success story of the company is driven by 8 success sutras adopted by it namely trust, integrity, dedication, commitment, enterprise, hard work and team play, learning and Innovation, empathy and humility. These are the values that bind success with Reliance securities.

Vision of Reliance securities

Reliance securities achieve & sustain market leadership, Reliance securities shall aim for complete customer satisfaction, by combining its human and technological resources, to provide world class quality1services. In the process Reliance securities shall strive to meet and exceed customer's satisfaction and set industry standards.

Mission statement
Our mission is to be a leading and preferred service provider to our customers, and we aim to achieve this leadership position by building an innovative, enterprising , and technology driven organization which will set the highest standards of service and business ethics.

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COMPANY STRCTURE:

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CHEAPTER-4

STUDY ABOUT PARAMETERS AND RATIO:

Return:Return on a typical investment consist of two components. The basis is the periodic cash receipts (or income) on the investments, either in the form of interest or dividends. The second component is the change in the price of the assets- commonly called the capital gain or loss. The elements of returns is difference between purchase price and the price which the assets can be or sold: there for it can be gain or loss . The return has been calculated as under

NAV1- NAV2 Portfolio return: Rit=. Where Rit is the difference between net assets values for two consecutive days dividends by the NAV of the preceding day.

M.indt - M-indt-1 Market return: Rmt=.

Risk: Risk neither good nor bad. Risk is holding securities is generally associated with the possibility that realized return will be less than expected returns. The difference between the required rate of returns on the mutual funds investment and the risk free return is the premium. Risk can be measured in terms of Beta & standard deviation.

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Standard deviation:it is use to measure the variation in individual returns from the average expected return over a certain period. Standard deviation is used in the concept of risk of a portfolio of investment. Higher standard deviation means great fluctuation in expected return.

SD=

Beta:Beta measure the systematic risk and how prices of securities respond to the market forces. It is calculated by relating the return on a security with return for the market. By convention, market will have beta 1.0. Mutual fund is said to be riskier than market. If beta is greater than 1. The indication is that stock is less risky in comparison to market. If beta is zero then the risk is the same as that of the market. = cover/(SD)2 Where, covariance (cover) is the average of the product of deviations for each data point pair. And, cover is calculated as: Covar= 1/n (xi -x) (Yi - y) Where, x= scheme returns. Y= market returns. = mean. = nxy-(x) (y) nx2-(x) 2 Where, n=number of years X= rolling return of the BSE index Y= rolling return of the schemes

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Sharpe index:Sharpe index measure risk premium of a portfolio, relative to the total amount of risk in the portfolio. Sharp index summarizes the risk and return of a portfolio in a single measure that categorizes the performance of funds of on the risk adjusted basis. The larger the Sharpes index the portfolio over performs the market vise versa. Formula to calculated Sharpes measure is: St= Rp-Rf Where, St= Sharpes index Rp= portfolio return R= Risk free rate of return SD= standard deviation of the portfolio

Treynors index; Treynors models is on the concept of the characteristics line. The characteristics line has drawn relationship between market return and a specific portfolio without taking into considerations any direct adjustment for risk. It is also known as reward to volatility ratio and is defined as:

The formula for the treynors index is: = Portfolio avg return (Rp)-risk free rate of interest (Rf) Beta coefficient of portfolio (Bp)

Alpha:-

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The size of alpha exhibits the stock unsystematic return and average return independent market return. If the fund produced the excepted return at level of risk assumed, the fund would have an alpha equal to zero. A positive alpha indicates that the manager produced return greater than excepted for the risk taken. Alpha is calculated by comparing the funds actual performance with the riskadjusted excepted return.

Where

Rp= portfolio Rf= risk free return (5%) Rn= Average market return

Type of fund taken for analysis: a) Large cap fund:

These are those type of funds which invest their money in large blue chip companies, having with a market capitalization of more than Rs 1000 crores. Investing in large cap is a low riskreturn proportion because such funds are widely research and information available. One of the advantage of large cap funds are that they are less volatile than mid cap and small cap fund because investors are investing in this type of fund for a long term prospective and help to keep these fund away from the volatile of the markets. Top performer under this category: 1) HDFC Top 200 its compounded annualized returns of last 5 years is 24.5% 2) Reliance large cap fund: its compound annual returns of last 5 years is 22.6% 3) Franklin India blue chip : its compounded annual returns of last 5years 20.7% 4) Kotak 30: its compounded annualized returns of last 5 years 19% 5) DSPML top 100 equity: its returns last 5 years is 18.4%

Sectors funds: LOVELY PROFESSIONAL UNIVERSITY, JALANDHAR

These type of fund are investing their money in particular sector of the economy. Such as infrastructure, Banking, Retail, FMCG, etc. these funds are more volatile than diversified fund having stocks of many sectors. These short term investors, who are able to high risk ability. TOP performer under this category: 1) Reliance diversified power sectors fund (g): its compounded annualized returns of last 5 years 27.8% 2) Reliance Banking fund (G): its compounded annual returns of last 5 years 25.7%. 3) Reliance Pharms (G): its compounded annual reports of last five years 5 years 25.4%. 4) ICICI Prudential infrastructure Fund (G): its compounded annual reports of last five years is 20.5. 5) UTI Banking sectors fund (G): its compounded annual reports of last 5 years is 20.4%.

Diversified funds:
These are a kind of fund which invest their money in different sectors like FMCG, infrastructure, pharms, etc. this help to diversified there Risk into various sectors. If one sectors is going down then other sector may volatile in long term. TOP performer funds under this categories: 1) IDFC Premium equity fund- plan (G): Its compounded annual reports of last 5 years is 26.9%. 2) Reliance regular saving fund- equity growth: its compounded annual reports of last 5 years is 26%. 3) HDFC Top 200 Growth: its compounded annual reports of last five year is 21.5%. 4) HDFC equity fund growth: its compounded annual report of last 5 year is 21.3% 5) Birla sun life frontline equity fund: its compounded annual reports of last 5 years is 21.2%.

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RELIANCE MUTUAL FUND:

Reliance mutual fund is Indias leading mutual fund with the quarter average assets under management (AAUM) of Rs 102066 crores. Reliance mutual funds, a parts of the reliance Anil dherubhai ambani group is one of the fastest growing mutual funds in the country. RMF offers investors a well- rounded portfolio of product to meet varying investor requirements and has presence in 159 cities across the country. Reliance Mutual fund constantly endeavours to launch innovative product and customer service initiatives to increase value to investors. Reliance mutual fund scheme managed by Reliance capital assets management limited. A subsidiary of reliance capital limited, which holds 93.37% of the paid- up capital of RCAM. The scheme that I have taken for analysis from reliance mutual fund are:

RELIANCE BANKING FUND (G): the primary investment objective of the scheme is to seek to generate continuous returns by actively investing in equity and equity related or fixed income securities of companies in the banking sectors.
Fund overview: Fund type Investment plan Assets sizes Launches date open Ended Growth Rs1466Crores May 21, 2003

Benchmark Fund manager

Bank Nifty Mr. Sunil singhania

RELIANCE MEDIA & ENTERAINTMENT FUND (G): The primary investment objective of the scheme is to generate consistent returns by investing in equity/ equity related or fixed income securities of media & entertainment and other associated companies.

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Fund overview: Fund type Investment plan Assets sizes Launch date Benchmark Fund manager open Ended Growth Rs112.05crores Sep 27, 2007 NA Mr. Sailesh Raj Bha

RELIANCE VISION (G):

its objective is seeks to provide long term capital

appreciation by primarily investing in growth oriented stocks.

Fund overview:

Fund type Investment plan Assets sizes Launches date Benchmark Fund manager

open Ended Growth Rs 61 crores Aug8, 2007 BSE 100 Mr. Ashwni Kumar

UTI MUTUAL FUND:

UTI mutual fund was started in14, January 2003 by UTI trustee co, pvt, ltd. For managing the scheme of UTI mutual fund. UTIAMC provides professionally managed back office support for all business service of UTI mutual fund in accordance with the previous of the investment management agreement, the trust Deed, the SEBI Regulators and the objective of the schemes. Since February 3, 2004, UTIAMC is also registered portfolio management services. UTIAMC also acts as the manager and marketer to offshore funds through is 100% subsidiary. UTI international limited, registered in Guemsey, Channel Islands.

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UTIAMC presently manages a capital of over Rs. 65, 38,724.42 lakhs as on 31st December 2010. UTI mutual fund has a track record of managing a verity of scheme catering to the needs of every class of citizens. It has a nationwide network consisting 148 UTI financial centres (UFCs) and UTI international offices in London, Dubai and Bahrain.

UTIAMC has a well-qualified, professional fund management team, which has been fully empowered to manage fund with greater efficiency and accountability in the sole interest of the unit holders.

UTIMF has consistently rest and upgrade transparency standards. All the branches, UFCs and register offices are connected on a robust it network to ensure costefficiency quick and efficient service. The scheme that I have taken for analysis from UTI mutual fund are:

UTI INFRASTRUCTURE FUND (G): Investment objective is capital appreciation by investing in the companies engaged in the sectors like Metals, Real Estate, and oil: Gas, power, chemicals, Engineering etc. Fund overview Fund type Investment plan Assets sizes Launch date Benchmark Fund manager open Ended Growth Rs 1581 crores Aor7, 2004 BSE 100 Mr. Sanjay Dongre

UTI LARGE EQUITY FUND (G): the scheme is designed specially for large corporate investors who would like to invest large corporate investors and as well as high net worth investors who like to invest large amount in executive scheme which allows entry and exit at NAV. Fund overview Fund type open Ended

Investment plan Growth

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Assets sizes Launch date Benchmark Fund manager

Rs2170 crores may18, 1992 BSE sensitive index Mr. Anoop Bhaskar

UTI MID CAP FUND: Its aims to provide to investors growth of capital over the period of time by investing in mid cap stock as well as to make periodical distribution of income from investment in stocks of respective sectors of the Indian economy. Fund overview: Fund types Investment plan Assets sizes Launch date Bench mark Fund manager open Ended Growth Rs375 crores Apr 07, 2004 CNX mid cap Mr. Anoop Bhaskar

SBI MUTUAL FUND:

SBI Mutual fund is Indias largest bank sponsored mutual fund and has a track record in judicious investments and consistent and wealth creation. The fund traces its lineage to SBI India largest banking enterprise. The institution has grown immensely since its inception and today it is India largest bank, patronized by over 80% of the top corporate houses of the country.

SBI mutual fund is a joint venture between the state bank of India and society General assets management, one of the worlds leading fund management companies that manages over USS$500 Billion worldwide. In twenty years of operation, the fund has launched 38 schemes and successfully redeemed fifteen of them. In the process it has rewarded its investors handsomely with consistent returns.

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A total of over 5.8 million investors have respond their faith in the wealth generation expertise of the mutual fund. Today the fund manager over Rs 42100 crores of assets and has diverse profile of investors actively parking their investments across 38 active schemes. The fund serves this vast family of investors by reaching out to them through network of over 130 points of acceptance, 29 investor service centres, 59 investor service desks and 6 investor service points.

SBI mutual is the first bank-sponsored fund to launch an offshore fund resurgent India opportunity fund. The schemes thats I have taken for analysis from SBI mutual fund are:

SBI MAGNUM SECTOR UMBRELLA- PHARMA (G): It provides the investors maximum growth opportunity through equity investments in stocks of growth oriented sectors called pharms in long run. Fund overview: Fund types Investment plan Assets sizes Launch date Benchmark Fund manager open Ended Growth Rs 39.69 crores jul14, 1991 BSE health care Mr. Sohini Andani

SBI MAGNAM EQUITY FUND (G): To provide investors long term capital appreciation along with the liquidity of an open-ended scheme. The scheme will invest in a diversified portfolio of equities of high growth companies. Fund overview: Fund types Investment plan open Ended Growth

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Assets sizes Launches date Bench mark Fund manager

Rs 469 crores jan1, 1991 BSE100 Mr.srinivas

SBI MAGNUM MID CAP: To provide investors with opportunities for long term growth in capital along with the liquidity of an open ended scheme by investing predominantly in a well-diversified basket of equity stocks of companies and in debt and money market instruments. Fund overview: Fund type Investment plan Assets sizes Launch date Benchmark Fund manager open ended Growth Rs 303 crores Mar 17, 2005 CNX MID CAP Mr. Sohini Andani

FRANKLINE TEMPELTION MUTUAL FUND: Franklin

tempeltion

investment is one of the largest financial service group in the world based at san matco, California USA. The group has US$ 642.3 billion in assets under management globally. Franklin tempeltion has offices in 33 location across India and manages average AUM of Rs. 42142.21crores for over 22 lakhs investors (as on September 30, 2010). The schemes that I have taken for analysis from FRANKLINE TEMPLETION mutual fund are:

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FRANKLIN TEMPLETION FMCG FUND:

The scheme aim to long term capital appreciation through exclusively investing in shares of fast moving consumer Goods companies. Fund overview: Fund types Investment plan Assets plan Bench mark Fund manager JM FINANCIAL MUTUAL FUND: It is one of Indias first private sector mutual funds an integral part of the first wave that commenced operations in 1993-1994.it is a part of JM financial Group, which has a rich heritage, built over three decade. open Ended Growth Rs 51crores NA Anil prabhudas

Groups origins can be traced back to the 1950s when the company family began to get involved in Indias the capital markets. JM financial & investment consultancy service was founded on September 15, 1973.

JM financial Assets management private limited started operations in December 1994 with a simultaneous launch of three funds-JM liquid fund (now JM income fund), JM equity fund and JM balanced fund. Today, JM financial mutual fund offers a bouquet of fund that caters to the diverse needs for both its institutional and individual investors.

Its mission is manage risk while generating top quartile returns across all products categories. We believe that cultivate investors loyalty, we must provide a safe haven for their investment. We focused on helping our investors realize that investment goal through the prudent advice,

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judicious fund management, accurate research and strong system of managing risk scientifically. The scheme that I have taken for analysis from JM financial mutual fund are:

JM LARGE CAP FUND (G):

the scheme aim to provide long term capital appreciation

from a portfolio that is invested predominantly in liquid and equity related instruments in the health care sectors. Fund overview: Fund type Investment plan Assets sizes Bench mark Fund manager open ended Growth Rs 51 crores BSE health care sectors. Mr. Sanjay chhabaria

JM MID CAP FUND: the investment objective of the scheme is to provide capital appreciation by primarily investing in small and mid-cap stocks. Fund type Investment plan Assets sizes Launch date Fund manager open ended Growth Rs 9.7 crores Jun 9, 2004 MR. Sanjay chhabaria

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JM SMALL & MID CAP FUND: the investment objective of the scheme is to provide capital appreciation by primarily investing in small and mid-cap stocks Fund overview: Fund type Investment plan Assets sizes Launch date Bench mark Fund manager open ended. Growth Rs 5.8crores Mar9, 2007 CNX MID CAP MR. Sanjay chhabaria

BIRLA SUN LIFE MUTUAL FUND: Birla Sun Life Assets Management Company Ltd (BSLAMC) between the Aditya Birla Group and the sun life financial service Inc. of Canada. The joint venture bring together Aditya Birla Groups experience in the Indian market and sun life global experience.

Birla Sun life mutual fund is established in 1994. It offer a range of investment opportunities, including diversified fund and sector specific equity scheme fund, hybrid scheme fund and monthly income fund, a wide range of debt and treasury products and offshore funds. BSLAMC is one of the largest team of research analysis in the industries, dedicated to taking down the best companies to invest in. BSLAMC strive to provide transparent, ethical and research based investments and wealth management services. The scheme I have taken to analysis from sun life mutual fund are:

BIRLA SUNLIFE ADVANTAGE FUND: To achieve long term growth of capital through investment mainly in equity and equity related instrument.

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Fund overview: Fund type Investment plan Assets sizes Launch date Bench mark Fund manager open ended Growth Rs414 crores Feb 24, 1995 BSE sensitive index Mr. Ajay Agral

BIRLA SUN LIFE SMALL AND MID CAP FUND: its objective is to generate consistent long term capital appreciation by investing predominantly in equity and equity related securities of companies considered to small and mid-cap it may also invest in certain portion of its corpus in fixed income securities including money market instrument in order to meet liquidity requirement of time to time. Fund overview: Fund type Investment plan Assets sizes Launch date Bench mark Fund manager open ended Growth Rs189 crores Apr 9, 2007 CNX MID CAP Mr. Ankit sancheti

KOTAK MAHINDRA MUTUAL FUND: kotak Mahindra is one of the leading financial institutions, offering complete financial solution encompass every sphere of life. From commercial banking, to stock broking, to mutual fund, to life insurance, to invest banking, the group cater to financial need of individual and corporate. The group has net worth of Rs 7,911crore and employs around 20000 employees across its various business, servicing around 7 million customer accounts through a distribution network of 1716 Branches, franchise and satellite offices across more than 470 cities and towns in India and offices in New York, Caledonia, San Francisco, London, Mauritius and Singapore.

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Kotak Mahindra Assets Management Company Limited (KAMAMC), a wholly owned subsidiary of KMBL, is the asset manager for kotak Mahindra mutual fund (KMMF). KMAMC, is started operation in December 1998 and has over 10 lac investors in various scheme. KMMF offers schemes creating to investors with varying risk return profile and was the first fund house in the country to launch a dedicated gilt scheme investing only in government securities. Fund overview: Fund type Investment plan Launch date Bench mark Fund Manager open ended Growth Jan 28, 2005 CNX Nifty junior Mr. Pankaj Tibrewal

KOTAK EQUITY FUND: To generate long term capital appreciation from a portfolio creating by investing predominately in open-ended diversified equity schemes of mutual fund registered with SEBI. Fund overview: Fund type Investment plan Assets sizes Launch date Bench Mark Fund manager open ended Growth Rs 49 crores Aug 09, 2004 NA Mr. Sanjit Pishordi

SUNDRAM BNB PARIBAS MUTUAL FUND:

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Sundram mutual fund identifying an investment opportunity long before as one is the heart of our business belief. Being in the financial sector for a long time has given as a great understanding of the Indian economy and that guides us while picking the companies for its fund. Once unearth a potential opportunity, its financial experts spend countless time to research the companies, to see what will deliver the best return to your money.

Its financial experts are fine tuned to large global picture and all its complexities as well as intricacies of Indian market. We track global economy and market behaviour to better understand the domestic market. We are constantly on the trail of promising opportunities and once identified, a new theme is thoroughly researched and tested on various platform before being offered to the investing public. The fund schemes that have taken for analysis from sundram BNB PARIBAS mutual fund are: SUNDRAM BNB PARIBAS GROWTH FUND: It seek to achieve capital appreciation by investing in a well diversified basket of equities and equities related instruments. Income generation would be the secondary consideration. Fund overview: Fund type Investment plan Assets sizes Launch date Bench mark Fund Manager open ended Growth -

TATA MUTUAL FUND:

Tata mutual fund has earned the trust of lakhs of investors with consistent performance and world class services.

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It manage round Rs20, 85400 crores (average AUM for the quarter of October- December 2010) worth of assets across its varied offering. Tata mutual fund offers an investment option for everyone, whether you are a businessman or salaried capital builder. The Tata assets Management philosophy is centred on seeking consistent, long term result. Tata Assets management aims at overall excellence, within the Frame work of transparent and rigorous risk control. Tata mutual fund offers investors a board range of managed investment products in various assets classes and risk parameters, with operational flexibility to suit their varied investment needs. It offer a wide range of service to assets investors have a fulfilling and rewarding financial planning experience with us. It have designed our services keeping in mind the need of our investors, giving them a smooth and hassle free financial planning process. The schemes that have taken for analysis from Tata mutual fund are:

TATA DIVIDENT YIELD FUND:

To provide income distribution and / medium to long

term capital gains by investing predominantly in high dividend yield stocks. Fund overview: Fund type Investment plan Assets sizes Launch date Bench mark Fund manager open ended Growth Rs 177crores Oct 27 2004 BSE sensitive index Mr. Mahindra Jajoo/ Sachin relekar

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HDFC MUTUAL FUND:

HDFC assets management companies ltd (AMC) was incorporated under companies Act, 1956 on December 10, 1999 and was approved to act as an assets management company for the HDFC mutual fund by SEBI vide its letter at July 3, 2000. In terms of the investment management Agreement, the trustee has appointed the HDFC assets management companies limited to manage the mutual fund. The paid up capital of AMC is Rs 25161crorer .the AMC is managing28 0pen ended schemes of mutual fund some are Growth fund, HDFC EQUITY fund,

HDFC TOP200: Its objective is to generate long term capital appreciation by investing in a portfolio of equities and equities linked instruments drawn from the BSE200 index. Fund overview Fund type Investment plan Launch date Bench mark Fund manager open ended Growth Oct 27 2004 BSE 200 index Mr, parshant Jain

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CHAPTER-4 DATA ANALYSIS: 1) CAGR

Year/ schemes Tata Kotak Reliance Sundram HDFC TOP 200 102.25 20.7 29.14

Dividend Equity Diversified Balance yield Last 1 year Last 3 year Last 5 tear 103.78 20.3 19.14 FOF 86.03 13.08 21.11 Power 96 32.07 40.16 Fund 71.52 12.61 16.47

103.78

86.03

96

32.07

40.16

71.52

102.25

19.14

21.11

20.3

13.08

TATA DIVIDEND KOTAK EQUITY YIELD FOF

RELIANCE DIVERSIFIED POWER

SUNDRAM BALANCE FUND

12.61

16.47

HDFC TOP 200

INTERPRETATIONS:

A) In last 1 year HDFC, TATA and Reliance gave maximum return of 102.2%, 103.7%
and 96% respect, followed by Kotak and sundram by 86.03% and 71.5% respectively.

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20.7

29.14

B) In last 3&5 year, Reliance gave maximum return against its competitors.
Year/ schemes Tata Dividend yield Last 1 year Last 3 years Last 5 years Kotak Equity FOF Reliance Diversified Power Sundram Balance Fund HDFC TOP 200

0.0711419205 0.09292427 0.101266115 0.068953248 0.09332788 0.099664831 0.087110732 0.09966483 0.111054683 0.082246954 0.0968572 0.11201375 0.09839249 0.08549113 0.0841035

Standard Deviation:

STANDARD DEVIATION
0.099664831 0.09966483 0.101266115

last 1 year

0.111054683

0.11201375

last 3 year
0.09839249

last 5 year
0.082246954
0.082246954 0.09332788 0.0968572

0.08549113

0.087110732

0.09292427

TATA DIVIDEND YIELD

KOTAK EQITY FOF

RELIANCE DIVERSIFIED FUND

SUNDRAM BALANCE FUND

0.068953248

HDFC TOP 200

INTERPRETATION:

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0.0841035

A) As for as the standard deviation in last 1 year is concerned, it is high in Reliance Year/ schemes Tata Dividend yield Last 1 year Kotak Equity FOF Reliance Diversified Power 0.97078450 6 Last 3 years 0.173402004 0.1508907 0.10017151 5 Last 5 tear -0.01188823 0.1985720 0.97078450 6 which is .1 and low .o68. B) In the last 3 years, again Reliance has high standard deviation about .0.011 followed by kotak and Tata by 0.09 both. C) But in last 5 year Kotak is highly volatile followed by Reliance and Tata. D) BETA: 0.120147547 0.1671198 0.094652253 0.127550 Sundram Balanced Fund 0.839178531 0.889744 HDFC TOP 200

0.685522556 0.915633

BETA
0.970784506 0.839178531 0.839178531

last 1 years
0.915633 0.685522556

last 3 years

0.970784506

last 5 years
0.889744 0.120147547 HDFC TOP 200 0.12755 0.1671198

0.173402004

TATA DIVIDEND YIELD

-0.01188823

KOTAK EQUITY FOF

RELIANCE DIVERSIFIED POWER

0.100171515

0.1508907

0.198572

SUNDRAM BALANCED FUND

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INTERPRETATIONS: Year/ schemes Tata Kotak Reliance Diversified Power Sundram Balance Fund HDFC TOP 200

Dividend Equity yield Last 1 year Last 3 year Last 5 tear 2.82288 .54053 .46532 FOF

1.92184 1.941195962 1.78291329 2.18963153 .36523 .68236 .75575441 .991355024 .34489246 .50778455 0.551588391 0.82590418

A) In last one year reliance has high beta .97 as compare to others. B) In last three years all the fund are less volatile with Nifty, but in last five years Reliance has high beta. Of .97, so it is high volatile. C) Tata dividend has low beta in all the year.

Sharp Ratio:

SHARP RATIO
2.82288

last 1 years

last 3 years
1.941195962

last 5 years
2.18963153

0.991355024

1.78291329

1.92184

0.75575441

TATA DIVIDEND

KOTAK EQUITY FOF

RELIANCE DIVERSIFIED POWER

SUNDRAM BALANCED FUND

0.34489246

0.46532

0.36523

0.50778455

0.54053

HDFC TOP 200

INTERPRATION:

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0.551588391

0.68236

0.82590418

A) As for as last 1 year is concern, Tata has highest Sharpe ratio (2.8), followed by HDFC (2.1), Reliance (1.94), Kotak (1.92) and sundram (1.7). B) In last 3 years & 5 years, Reliance has highest Sharpe ratio against its competitors, C) Tata has low Beta in all the years.

Sector fund:
1) CAGR (in %) Years/scheme Reliance Banking Franklin FMCG UTI SBI Reliance Media & Ent 18.94 2.07 88.77

Infrastructure magnum pharma

Last 1 years Last 3 years Last 5 years

120.55 30.21 25.37

68.77 17.52 21.73

66.77 10.89 23.23

112.96 3.61 12.31

last 1 year
120.55

last 3 years

last 5 years
112.96

68.77

30.21

25.37

66.77

21.73

23.23

17.52

10.89

3.61

12.31

18.94

BANKING

FMCG

INFRASTRUCTURE

PHARMA

MEDIA & ENT

INTERPRATATION:

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2.07

88.77

A) In last years, banking and SBI gave highest return of 120% and 112.9% respective against competitors. B) In last three years Reliance banking gave highest return of 30.2 %. And in last 5 years reliance media & ENT maximum return of 88.7%.

STANDARD DEVIATION:

Years/sche me

Reliance Banking

Franklin FMCG

UTI Infrastructu re

SBI magnum pharma 0.0956267 97

Reliance Media & Ent 0.1079924 07 0.1187578 26 0.1045544 54

Last 1 years

0.1289433 75

0.05415499 4 0.01158294 28 0.06020592 2

0.094154994

Last 3 years

0.1158294 28

0.104597968

0.1045979 68

Last 5 years

0.1024895 84

0.09752141

0.0947086 4

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STANDARD DEVIATION
0.128943375 0.115829428 0.104597968 0.104597968 0.107992407 0.118757826

last 1 year
0.102489584

last3 years
0.094154994
0.09752141

last 5 years
0.095626797

0.054154994

BANKING

FMCG

0.011582943

0.060205922

INFRACSTRUCTURE

PHARMA

0.09470864

MEDIA& ENT

INTERPRATATION: A) In all the three years is concern Reliance Banking has highest standard Deviation, so it is highly volatile as compare to its competitors. B) Franklin FMCG is less volatile as compare to its competitors, so it is less risky to invest in this fund.

Beta:
Years/sche me Reliance Banking Franklin FMCG UTI Infrastructu re Last 1 years 1.23072293 0.16291949 0.914220081 1 Last 3 years 6 SBI magnum pharma Reliance Media & Ent

0.85286803 1.03158908 3 0.13046722 0.23178450 8 3

0.21388727 0.05444464 0.096699523 7 5

Last 5 years

0.24802596 0.09334030 0.014594994 1 7 1

0.16879446 0.26664004 2

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0.104554454

1.230722931

last 1 years

last 3 years
0.914220081

last 5 years
1.031589083

0.248025961

0.85286803

0.213887277

0.162919496

0.054444645

0.093340307

0.096699523

BANKING

FMCG

INFRASTURACTURE

0.014594994

PHARMA

0.130467228

0.168794462

MEDIA & ENT

INTERPRATATION:
A) In last 1 years, Reliance Banking has high Beta of 1.2, so it is highly volatile as compare to its competitors. B) Overall, Franklin FMCG is less volatile as compare to its competitors, so its less risky to invest in this fund.

Sharpe ratio:

Years/schem Reliance e Banking

Franklin FMCG

UTI

SBI

Reliance Media & Ent 1.73819063 7 0.04470273 9

Infrastructur magnum e pharma 1.91977976 6 0.296815592 0.12578490 2

Last 1 years

1.86721063 6

2.6086068 3 0.5940665 9

1.550735632

Last 3 years

0.70161671 3

Last 5 years

0.64209473

0.7668029 8

0.611539329

0.33900012 2

0.40984207

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0.231784503

0.26664004

2.60860683

last 1 years

last 3 years

last 5 years

1.867210636

1.919779766

0.701616713

0.76680298

1.550735632

0.59406659

0.611539329

0.64209473

1.738190637

0.296815592

0.125784902

0.339000122

BNAKING

FMCG

INFRASTUCTURE

PHARMA

MEDIA & ENT

INTERPRATATION:
A) In last 1 years Franklin FMCG has highest Sharpe ratio of 2.6 as compare to its competition, so it is good indicator for it. B) In last 3 years Reliance Banking & Franklin FMCG has high Sharpe ratio of 0.7 and 0.5 respectively and reliance Media & Ent has lowest of -0.4. C) In last 5 years Franklin has highest Sharpe ratio of 0.7 and SBI has lowest of 0.3.

Large cap fund:

Years/scheme Reliance Vision UTI Equity JM large Cap Birla Sun life adv fund Last 1 years Last 3 years Last 5 years 88.44 14.1 23.39 82.65 16.34 18.02 48.28 0.8 7.94 14.48 8.24 18.16 SBI magnum equity 94.09 37.61 21.11

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-0.044702739

0.40984207

CAGR
88.44 82.65 94.09 37.61 14.48 0.8 7.94 BIRLA SUN LIFE FUND 8.24 18.16 SBI MAGNUM EQUITY

last 1 years

last 3 years

last 5 years

23.39

48.28

RELIANCE VISION

14.1

UTI EQUITY

16.34

18.02

JM LARGE CAP

INTERPRATATION:

A) In last 1 years CAGR of SBI, Reliance Vision & UTI has high by 94%, 88.4%, and 82.6% respectively, as compare to its competitors. B) In last 3 & 5 years SBI gave highest returns of about 37.6% & 21.1 % respectively. C) Overall, Birla sun life adv fund gave least return.

Standard Deviation:

Years/schem e

Reliance Vision

UTI Equity

JM large Cap

Birla Sun life adv fund

SBI magnum equity 0.097667 168 0.105668

Last 1 years

0.0999137 6

0.074428 8 0.083351

0.078338 3 0.088863

0.11597324 2 0.11269396

Last 3 years

0.1001844

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21.11

8 Last 5 years 0.0886405 9

2 0.078008 3

8 0.081352 2 0.09687164 2

883 0.095151 301

STANDARD DEVIATION
0.115973242

0.11269396

last 1 year
0.09991376
0.10018448

last 3 years

last5 years
0.096871642 0.097667168 0.105668883 0.095151301

0.08864059

0.0833512

0.0888638

RELIANCE VISION

UTI EQUITY

0.0744288

0.0780083

JM LARGE CAP

0.0783383

0.0813522

BIRLA SUNLIFE ADV FUND

SBI MAGNUM

INTERPRATATIONS:
A) In last 1, 3&5 years, Birla sun life adv, fund has high standard Deviation, so it is highly volatile as compare to its competitors. B) Overall, UTI Equity is least volatile fund among its competitors, so it is better to invest in such a less risky fund.

Beta:

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Years/scheme Reliance Vision

UTI Equity

JM large Cap

Birla Sun life adv fund

SBI magnum equity

Last 1 years Last 3 years Last 5 years

0.17248455 0.7078600 0.7575292 1.128608674 0.93092074 0.13229572 0.1190345 0.0703577 0.165711517 0.13980907 0.17248455 0.1607937 0.1049985 0.206156923 0.182037128

0.70786

0.7575292

0.206156923

0.93092074 0.165711517 SBI MAGNUM EQUITY 0.13980907 0.182037128

Series 1

Series 2

Series 3

0.17248455

0.13229572

0.17248455

0.1190345

0.1607937

RELIANCE VISION

UTI EQUITY

JM LARGE CAP BIRLA SUNLIFE ADV FUND

INTERPRATATION:
A) In last 1 year Birla sun life has a high beta of 1.1 as compare to its competitors, which shows high volatility. B) In last 1 year, Reliance vision has low Beta(0.17) C) JM large CAP in last 3&5 year also has low Beta about 0.7&0.1respectively, so its is less risky and safer to invest.

LOVELY PROFESSIONAL UNIVERSITY, JALANDHAR

0.0703577

0.1049985

1.128608674

BETA

SHARPE RATIO:

Years/schem e

Reliance Vision

UTI Equity

JM large Cap

Birla Sun life adv fund

SBI magnum equity 1.80743058

Last 1 years

2.19170308

0.0140956 0

0.384419 6 0.015875 8

1.74102981 3 0.23701981 3

Last 3 years

0.37702979 2

0.4621830 2

0.20060521 5

Last 5 years

0.64603402 7

0.5301262

0.209397 7

0.48583637 8

0.53402252

SHARPE RATIO
2.19170308

last 1 year

last 3 years

last 5 years
1.741029813

0.646034027

0.485836378

1.80743058

0.377029792

0.46218302

0.5301262

0.237019813

0.3844196

0.0140956

RELIANCE VISION

UTI EQUITY

JM LARGE CAP

-0.0158758

BIRLA SUN LIFE ADV FUND

SBI MAGNUM EQUITY

INTERPRATATION:
A) In last 1 year Reliance vision, SBI Equity & Birla sun life has high Sharpe Ratio about 2.1, 1.8, & 1.7 respectively, which shows good indicators. UTI has low which is .01. B) In last 3&5 years, JM large CAP has a less Sharpe ratio about -.01 & .2 respectively, which shows its poor performance.

LOVELY PROFESSIONAL UNIVERSITY, JALANDHAR

0.200605215

0.2093977

0.53402252

FINDING & SUGGESTION:

PERFORMANCE SHEET OF DIVERSIFIED FUNDS:

Scheme

CAGR CAGR (1Yr) (3yrs) 20.3 13.08 32.07

CAGR (5Yrs) 19.14 21.11 40.16

Rank (1yr) 2 4 3

Rank (3yrs) 3 4 1

Rank (5yrs) 4 3 1

Tata dev Kotak equity Reliance diversified Sundram balance HDFC TOP200

100 86.03 100

71.52

12.61

16.47

102.25 20.7

29.14

Diversified funds:

a) The performance of Tata Dividends & HDFC top 200 are better than their competitors because there Sharpe ratio & CAGR are relatively high against their competitors, there Beta & standard Deviation both are low. b) The performance of Reliance Diversified & sundram are poor because of their low Sharpe ratio & CAGR. Also they are more risky as compare to their competitors because of their high Beta. c) I would suggest giving first priority to HDFC TOP200 and second to Tata Dividend.

LOVELY PROFESSIONAL UNIVERSITY, JALANDHAR

PERFORMANCE SHEET (SECTOR FUNDS):

Scheme

CAGR CAGR (1Yr) (3yrs)

CAGR( 5Yrs) 25.37 21.73 23.23 12.31 88.77

Rank(1 yr.) 1 3 2 4 5

Rank(3 yrs) 1 4 3 5 2

Rank( 5yrs) 2 4 3 5 1

Reliance Banking Franklin FMCG UTI Infrastructure. SBI Pharma Reliance Media & Ent

120.55 25.37 68.68 66.77 17.52 10.89

112.96 3.61 18.94 20.9

SECTOR FUND:
a) The performance of Reliance banking on the Basis of CAGR is outperforming as compare to its competitors. Its Sharpe ratio is also good after Franklin FMCG. b) Those who wants take high returns as well as risk Reliance banking is good for them because its Beta is also high among its competitors. c) Those who wants keep them safe and able to take less risk, for them Franklin is better option..

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PERFORMACE SHEET (LARGE CAP FUND):

Scheme Reliance Vision UTI Equity JM large CAP Birla sun life SBI equity CAGR (1Yr) 88.44 82.65 48.58 14.48 94.19 CAGR (3yrs) 14.1 16.34 o.8 8.24 37.61 CAGR( 5Yrs) 23.39 18.02 7.94 18.16 21.11 Rank(1 yr.) 2 3 4 5 1 Rank(3 yrs) 3 2 5 4 1 Rank(5 yrs) 1 4 5 3 2

LARGE CAP FUND:

a) SBI & Reliance vision both have good CAGR and Sharpe ratio, but Reliance have very less Beta as compare to SBI, so Reliance should be the priority for investment. b) Large cap & Birla sun life adv both is poor performance as far as CAGR and Sharpe ratio is concerned, so try to avoid them

CONCLUSION
Mutual fund investment is better than other arising fund Reliance and SBI fund have good return under the large cap companies and you can also invest in HDFC TOP 200 and we have also opportunities in Reliance banking (sector fund), Tata Dividend yield . But the return of company and risk is not certain it vary time to time, in simple word we can say that other factor have also impact.
The expectations of the customers are regularly increasing because of the increasing competition and emergence of global market. In such conditions it becomes very necessary for a company to fulfil all the expectations of the customers and give them a delightful experience.

LOVELY PROFESSIONAL UNIVERSITY, JALANDHAR

These financial instruments are risky and it is very essential to make the customer feel that you are taking care of his money. This can be done only in mutual fund scheme compare other financial scheme because mutual fund have professional management.

REFERNCE
BOOKS: 1) Donald E fisher, security analysis & portfolio management. 2) Business research methodology.( Naval Bajpayee) 3) Marketing Management. ( flip Kotler) WEBSITE: 1) http://www.bluechipindia.co.in 2) http://www.Franklintempletionindia .com 3) http://www. Utimf.com 4) http://www. Hdfc.com. 5) http://mutualfund.birlasunlife .com 6) http://www. reliancemutual.com 7) http://www.Investopedia.com 8) http://www.Money .rediff.com 9) http://www.Money control.com

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