Comparative Analysis on Mutual Fund Scheme With reference to Sundaram finance Ltd.

Report submitted in partial fulfillment of

POS !RA"#A $ "%PLOMA %& MA&A!$M$&

C$R %F%CA $ This is to certify that ''''' has completed the project titled (Comparative analysis on the mutual fund scheme) from Sundaram finance Ltd under my guidance completed the project successfully, for the partial fulfillment of the course: Dissertation in term= 3rd of the post Graduate Diploma in Management- XXXXX specialization !atch XXXX"#

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This project in itself is an ac,no-ledgement to the inspiration, dri.e and .alua/le guidance contri/uted to it /y many indi.iduals# This project -ould ne.er ha.e /een the light of day -ithout the help and guidance that ha.e /een recei.ed# 0 -ould li,e to e1press my sincere appreciation and than,s to '''' -ho guided me all throughout the summer training# 0t is under her .alua/le guidance, constant interest and encouragement 0 ha.e completed this project# 2e de.oted his e.er-precious time from his /usy schedule and helped in complete understanding of the mutual fund industry in 0ndia#

3inally 0 -ould li,e to than, my professor '''', -hose most .alua/le e1pertise -as training to me to /e success#

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0, !#4anthosh &umar ,declare in full consciousness that this has /een carried out /y me is original and in no -ay has /een copied or is reproduction of any prior e1isting -or,#

"ate* Si+nature Place*

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C-AP $R % 0ntroduction 4cope of study 'eed for study (/jecti.e Methodology Data %ollection 4ampling 4ampling techni5ue Tools used *imitations of the study

C-AP $R %% 0ndustry 6rofile %ompany profile C-AP $R %%% Theory of the study C-AP $R %. Data analysis and interpretation C-AP $R . 3indings, conclusion, suggestions

C-AP $R /

Introduction Scope of the study Need for study Objective Methodology Data collection and processing Sampling technique Sam palling technique Tools used

imitations of the study

Mutual fund: $n 0ntroduction $ mutual fund is a form of collecti.e in.estment# 0t is a pool of money collected from .arious in.estors -hich is in.ested according to the stated in.estment o/jecti.e# The fund manager is the person -ho in.ests the money in different types of securities according to the predetermined o/jecti.es# The portfolio of a mutual fund is decided ta,ing into consideration this in.estment o/jecti.e# Mutual fund in.estors are li,e shareholders and they o-n the fund# The income earned through these in.estments and the capital appreciation realized /y the scheme is shared /y its unit holders in proportion to the num/er of units o-ned /y them# The .alue of the in.estments can go up or do-n, changing the .alue of the in.estors holding# Mutual funds are one of the /est in.estments e.er created /ecause they are .ery cost efficient and .ery easy to in.est in#

The in.estment in securities through mutual funds is spread across -ide range of industries and sectors and thus the ris, is reduced# Di.ersification reduces the ris, /ecause all stoc,s may not mo.e in the same direction at the same time# 7arious fund houses issue units to the in.estors in accordance -ith the 5uantum of money in.ested /y them# 0n.estors of mutual funds are ,no-n as unit holders# 0n 0ndia a mutual fund is re5uired to /e registered -ith 4ecurities +1change !oard of 0ndia 84+!09 -hich regulates the securities mar,et#

$D7$'T$G+4 (3 0'7+4T0'G 0' M:T:$* 3:'D4: There are se.eral that can /e attri/uted to the gro-ing popularities and suita/ility of mutual funds as an in.estment .ehicle especially for retail in.estors#

6rofessional management: Mutual funds pro.ide the ser.ices of e1perienced and s,illed professionals, /ac,ed /y a dedicated in.estment research team that analysis the performance and prospects of companies and selects suita/le in.estments to achie.e the o/jecti.es of the scheme#

Di.ersification: Mutual funds in.est in a num/er of companies across a /road cross- section of industries and sectors# This di.ersification reduces the ris, /ecause seldom do all stoc,s decline at the sane time and in the same proportion# ;ou achie.e this di.ersification through a mutual fund -ith far less money than you can do on your o-n#

%on.enient administration: 0n.esting in a mutual fund reduces paper-or, and helps you a.oid many pro/lems such as /ad deli.eries, delayed payment and follo- up -ith /ro,ers and companies# Mutual funds sa.e your time and ma,e in.esting easy and con.enient#

<eturn potential: (.er a medium to long term, mutual funds ha.e the potential to pro.ide a higher return as they in.est in a di.ersified /as,et of selected securities#

*o- costs: Mutual funds are a relati.ely less e1pensi.e -ay to in.est compared to directly in.esting in the capital mar,ets /ecause the /enefits of scale in /ro,erage, custodial and other fees translate into lo-er costs for in.estors# *i5uidity: 0n open ended schemes, the in.estors get the money /ac, promptly at net asset .alue related prices from the mutual fund# 0n closed end schemes, the units can /e sold on a stoc, e1change at the pre.ailing mar,et price or the in.estor can a.ail of the facility of direct repurchase at '$7 related prices /y mutual fund# Transparency: ;ou get regular information on the .alue of your in.estment in addition to disclosure on the specific in.estments made /y your scheme, the proportion in.ested in each class of assets and the fund manager=s in.estment strategy and outloo,# 3le1i/ility: Through features such as regular in.estment plans, regular -ithdra-al plans and di.idend rein.estment plans, you can systematically in.est or -ithdra- funds according to your needs and con.enience# $fforda/ility: 0n.estors indi.idually may lac, sufficient funds to in.est in high-grade stoc,s# $ mutual fund /ecause of its large corpus allo-s e.en a small in.estor to ta,e the /enefit of its in.estment strategy#

%hoice of schemes: Mutual funds offer a family of schemes to suit your .arying needs o.er a lifetime#

0mportance of Mutual 3und:

4mall in.estors face a lot of pro/lems in the share mar,et, limited resources, lac, of professional ad.ice, lac, of information etc# Mutual funds ha.e come as a much needed help to these in.estors# 0t is a special type of institutional de.ice or an in.estment .ehicle through -hich the in.estors pool their sa.ings -hich are to /e in.ested under the guidance of a team of e1perts in -ide .ariety of portfolios of corporate securities in such a -ay, so as to minimize ris,, -hile ensuring safety and steady return on in.estment# 0t forms an important part of the capital mar,et, pro.iding the /enefits of a di.ersified portfolio and e1pert fund management to a large num/er, particularly small in.estors# 'o- days, mutual fund is gaining its popularity due to the follo-ing reasons#

)ith the emphasis on increase in domestic sa.ings and impro.ement in deployment of in.estment through mar,ets, the need and scope for mutual fund operation has increased tremendously# The /asic purpose of reforms in the financial sector -as to enhance the generation of domestic Tripathy, Mutual 3und in 0ndia: $ 3inancial 4er.ice in %apital # # # >?" resources /y reducing the dependence on outside funds# This calls for a mar,et /ased institution -hich can tap the .ast potential of domestic sa.ings and chanalise them for profita/le in.estments# Mutual funds are not only /est suited for the purpose /ut also capa/le of meeting this challenge# $n ordinary in.estor -ho applies for share in a pu/lic issue of any company is not assured of any firm allotment# !ut mutual funds -ho su/scri/e to the capital issue made /y companies get firm allotment of shares# Mutual fund latter sell these shares in the same mar,et and to the 6romoters of the company at a much higher price# 2ence, mutual fund creates the in.estors confidence#

The phyche of the typical 0ndian in.estor has /een summed up /y Mr# 4# $# Da.e, %hairman of :T0, in three -ords@ ;ield, *i5uidity and 4ecurity# The mutual funds, /eing

set up in the pu/lic sector, ha.e gi.en the impression of /eing as safe a conduit for in.estment as /an, deposits# !esides, the assured returns promised /y them ha.e in.estors had great appeal for the typical 0ndian in.estor# $s mutual funds are managed /y professionals, they are considered to ha.e a /etter ,no-ledge of mar,et /eha.iors# !esides, they /ring a certain competence to their jo/# They also ma1imize gains /y proper selection and timing of in.estment# $nother important thing is that the di.idends and capital gains are rein.ested automatically in mutual funds and hence are not fritted a-ay# The automatic rein.estment feature of a mutual fund is a form of forced sa.ing and can ma,e a /ig difference in the long run# The mutual fund operation pro.ides a reasona/le protection to in.estors# !esides, presently all 4chemes of mutual funds pro.ide ta1 relief under 4ection >A * of the 0ncome Ta1 $ct and in addition, some schemes pro.ide ta1 relief under 4ection >> of the 0ncome Ta1 $ct lead to the gro-th of importance of mutual fund in the minds of the in.estors# $s mutual funds creates a-areness among ur/an and rural middle class people a/out the /enefits of in.estment in capital mar,et, through profita/le and safe a.enues, mutual fund could /e a/le to ma,e up a large amount of the surplus funds a.aila/le -ith these people# The mutual funds attracts foreign capital flo- in the country and secure profita/le in.estment a.enues a/road for domestic sa.ings through the opening of off shore funds in .arious foreign in.estors# *astly another nota/le thing is that mutual funds are controlled and regulated /y 4 + ! 0 and hence are considered safe# Due to all these /enefits the importance of mutual fund has /een increasing#

SCOP$ OF S #"0: The study -as carried out for a period of BA days, in -hich the main focus -as to follothe performance of the different-different mutual fund companies and assent management

companies# 4ince different companies come out -ith similar themes in the same season, it /ecomes crucial for the company to constantly perform -ell so as to sur.i.e the competition and pro.ide ma1imum capital appreciation or return as the case may /e# (ther than the mar,et the performance of the fund depends on the ,ind of stoc, chosen /y the fund managers of the company# The analysis is done on the performance of funds -ith the same theme or sector and reason out -hy a fund performs /etter than the others in the lot#

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The study first tries to understand the composition of the selected funds -hich determines the scope of performance for the funds, follo-ed /y use of ratios that are rele.ant in 5uantifying and understanding the ris, and return relationships for each mutual fund scheme under consideration# Then a comparati.e analysis of the mutual fund schemes is done to see -hich fund has performed the /est# This study is significant to the company as it loo,s into the minute details that differentiate the performances of funds of different companies -ith same theme or sector under similar mar,et conditions# This -ould help the company to de.elop#

(!C+%T07+4 (3 T2+ 4T:D;: To understand the 3unctions of an $sset Management %ompany To understand the performances of .arious schemes using .arious tools to measure the performances# To measure and compare the performance of selected mutual fund schemes of different mutual fund companies and other $sset Management %ompanies#

M$ -O"OLO!0* "ata collection:

The data re5uired for the study may /e collected either from primary sources or from secondary sources# $ major portion of the data in this study has /een collected through secondary sources of data# 4econdary data sources include: 6u/lished material and annual reports of mutual fund companies (ther pu/lished material of mutual funds# <esearch /ased online portals# :npu/lished sources also# 4ample 6rofile: The sample re5uired for the study has /een selected through random sampling method from the a.aila/le list of mutual fund schemes in the mar,et# !roadly the sample of DE mutual fund schemes includes e5uity funds, de/t funds and /alanced funds#

The study has ta,en three /road categories of funds +5uity 3unds De/t funds !alanced fund +5uity 3unds: D#!irla $d.antage 3und F Gro-th E#2D3% +5uity 3und F Gro-th 3# 0%0%0 6rudential Dynamic 6lan F Gro-th G#4undaram !'6 6ari/as gro-th fund- Gro-th

De/t funds:

D# !irla !ond 0nde1 3und F Gro-th E# 2D3% 2igh 0nterest 3und F Gro-th 3# 0%0%0 6rudential !lended 6lan - (ption ! F Gro-th G# 4undaram !'6 6ari/as fund- Gro-th !alanced fund: D# !irla !alance 3und F Gro-th E# 2D3% !alanced 3und F Gro-th 3# 0%0%0 6rudential !alanced F Gro-th G# 4undaram !'6 6ari/as /alanced- Gro-th 3or the purpose of estimating the performance of schemes in terms of returns, '$7 of the schemes are ta,en into consideration# $s data relating to '$7 is a.aila/le more fre5uently than any other data it is ta,en as the /asis for estimation#

6eriod of the 4tudy: The study co.ered a period of 3 years from EAAH to EAA> to assess the performance of the schemes in terms of returns# Tools I Methods: !eta: 0t descri/es the relationship /et-een the stoc,=s return and the inde1 returns# The /eta .alue may /e interpreted in the follo-ing manner, Ja DK change in 'ifty inde1 -ould cause a D#AGEK /eta" change in the particular fund# 0t is the slope of characteristic regression line# 0t signifies that a fund -ith a /eta of more than D -ill rise more than the mar,et and also fall more than mar,et# Thus, if one li,es to /eat the mar,et on the upside, it is /est to in.est in a high-/eta fund# !ut one must ,eep in mind that such a fund -ill also fall more than the mar,et on the -ay do-n# 4o, o.er an entire cycle, returns may not /e much higher than the mar,et# 4imilarly, a lo--/eta fund -ill rise less than the mar,et on the -ay up and lose less on the -ay do-n# )hen safety of in.estment is important, a fund -ith a /eta of less than one

is a /etter option# 4uch a fund may not gain more than the mar,et on the upside, /ut it -ill protect returns /etter -hen mar,et falls#

= nxy (x)( y)
nx2 (x)2

)here, n F 'um/er of days 1 F <eturns of the inde1 y F <eturns of the fund $lpha: 0t indicates that the stoc, return is independent of the mar,et return# 0f the portfolio is -ell di.ersified, the alpha .alue -ould turn out to /e zero# The intercept of characteristic regression line is alpha# $lpha sho-s -hether the particular fund has produced returns justifying the ris,s it is ta,ing /y comparing its actual return to the one LpredictedL /y the /eta# $lpha can /e seen as a measure of a fund managerLs performance# This is -hat the fund has earned o.er and a/o.e or under" -hat it -as e1pected to earn# Thus, this is the .alue added or su/tracted" /y the fund managerLs in.estment decisions# This can /e clearly seen from the fact that 0nde1 funds al-ays ha.eMor should ha.e, if they trac, their inde1 perfectlyMan alpha of zero# Thus, a passi.e fund has an alpha of zero and an acti.e fundLs alpha is a measure of -hat the fund managerLs acti.ity has contri/uted to the fundLs returns# (n the -hole a positi.e alpha implies that a fund has performed /etter than e1pected, gi.en its le.el of ris,# 4o higher the alpha /etter are returns#

= y - x
)here, y F Mean .alue of returns of the fund

1 F Mean .alue of returns of the inde1 N F !eta .alue of the fund %orrelation %o-efficient: 0t measures the nature and the e1tent of relationship /et-een the stoc, mar,et inde1 returns and a fund=s return in a particular period#

r=

nxy (x)( y) . 2 2 2 nx (x) ny (y)

2

%o-efficient of Determination: The s5uare of correlation of co-efficient is the co-efficient of determination# 0t gi.es the percentage .ariation in the stoc,=s return e1plained /y the .ariation in the mar,et return#

rE Treynor=s <atio: The Treynor <atio, named after Cac, *# Treynor, one of the fathers of modern portfolio theory, helps analyze returns in relation to the mar,et ris, of the fund# The <atio, also ,no-n as the re-ard-to-.olatility ratio, pro.ides a measure of performance adjusted for mar,et ris,# 2igher the Treynor <atio, the /etter the performance under analysis# 0t is a ratio that helps the portfolio managers to determine the e1cess return generated as the difference /et-een the fund=s return and the ris, free return# The e1cess return to /eta ratio measures the additional return on a fund per unit of systematic ris,# <an,ing of the funds is done /ased on this ratio#

T = R RFR

)here, < F <eturn on in.estment#

<3< F <is, 3ree <eturn 4harpe=s <atio: 4harpe=s ratio is similar to treynor=s ratio the difference /eing, instead of /eta here -e ta,e standard de.iation# $s standard de.iation represents the total ris, e1perienced /y the fund, it reflects the returns generated /y underta,ing all possi/le ris,s# $ higher 4harpe=s ratio is /etter as it represents a higher return generated per unit of ris,#

S = R RFR

<eturn $ return is a measurement of ho- much an in.estment has increased or decreased in .alue o.er any gi.en time period# 0n particular, an annual return is the percentage /y -hich it increased or decreased o.er any t-el.e-month period#

3ormula: 6D-pA" 6A Mean: The mean a.erage is a 5uic, mathematical measure of a num/er of data points as a unit# 0t -ill tell you important information a/out a group of data in your /usiness# 0t is almost a summary of all the data in your dataset# Mean: Mean = 4um of X .alues O ' 'um/er of .alues"#

4tandard De.iation: The degree that a single .alue in a group of .alues .aries from the mean a.erage" of the distri/ution# 4tandard de.iation is a statistical measure that uses past performance of an

in.estment or portfolio to determine the potential range of future performance and assess the pro/a/ility of that performance# 4tandard de.iations can /e calculated for an indi.idual security or for the entire portfolio

7ariance: 7ariance: 7ariance = sE 1ensen Ratio 21R3* $ ris,-adjusted performance measure that represents the a.erage return on a portfolio o.er and a/o.e that predicted /y the capital asset pricing model %$6M", gi.en the portfolioLs /eta and the a.erage mar,et return# This is the portfolioLs alpha# 0n fact, the concept is sometimes referred to as PCensenLs alpha#P

Q Censen <atio C<" = ----------------N

Data 6rocessing and $nalysis:

Data is processed -ith the help of Microsoft +1cel and 4644 4tatistical 6ac,age for 4ocial 4ciences"# The '$7s for si1 months of all the funds and their /enchmar,s -ere entered into the spreadsheet and the a/o.e mentioned tools -ere used to get the final .alues for the comparati.e analysis and interpretations#

*imitations of the 4tudy: The present study has the follo-ing limitations The study has /een restricted to only a fe- schemes# The data is analyzed for a limited period of 3 years#

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0ndustry 6rofile %ompany 6rofile

%&"#S R0 PROF%L$

3ollo-ing diagram gi.es the structure of 0ndian financial system:

0'D:4T<; 6<(30*+ 3ollo-ing diagram gi.es the structure of 0ndian financial system:

0'D:4T<; 6<(30*+: M:T:$* 3:'D4: Mutual funds go /ac, to the times of the +gyptians and 6hoenicians -hen they sold shares in cara.ans and .essels to spread the ris, of these .entures# The foreign and colonial go.ernment Trust of *ondon of D>B> is considered to /e the fore-runner of the

modern concept of mutual funds# The :4$ is, ho-e.er, considered to /e the Mecca of modern mutual funds# !y the early - DR3As 5uite a large num/er of close - ended mutual funds -ere in operation in the :#4#$# Much latter in DRHG, the committee on finance for the pri.ate sector recommended mo/ilization of sa.ings of the middle class in.estors through unit trusts# 3inally in Culy DRBG, the concept too, root in 0ndia -hen :nit Trust of 0ndia -as set up#

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The end of millennium mar,s 3B years of e1istence of mutual funds in this country# The ride through these 3B years is not /een smooth# 0n.estor opinion is still di.ided# )hile some are for mutual funds others are against it# :T0 commenced its operations from Culy DRBG #The impetus for esta/lishing a formal institution came from the desire to increase the propensity of the middle and lo-er groups to sa.e and to in.est# :T0 came into e1istence during a period mar,ed /y great political and economic uncertainty in 0ndia# )ith -ar on the /orders and economic turmoil that depressed the financial mar,et, entrepreneurs -ere hesitant to enter capital mar,et# The already e1isting companies found it difficult to raise fresh capital, as in.estors did not respond ade5uately to ne- issues# +arnest efforts -ere re5uired to canalize sa.ings of the community into producti.e uses in order to speed up the process of industrial gro-th# The then 3inance Minister, T#T# &rishnamachari set up the idea of a unit trust that -ould /e Popen to any person or institution to purchase the units offered /y the trust# 2o-e.er, this institution as -e see it, is intended to cater to the needs of indi.idual in.estors, and e.en among them as far as possi/le, to those -hose means are small#P 2is ideas too, the form of the :nit Trust of 0ndia, an intermediary that -ould help fulfill the t-in o/jecti.es of mo/ilizing retail sa.ings and in.esting those sa.ings in the capital mar,et and passing on the /enefits so accrued to the small in.estors# :T0 commenced its operations from Culy DRBG P-ith a .ie- to encouraging sa.ings and in.estment and participation in the income, profits and gains accruing to the %orporation from the ac5uisition, holding, management and disposal of securities#P Different pro.isions of the :T0 $ct laid do-n the structure of management, scope of /usiness, po-ers and functions of the Trust as -ell as accounting, disclosures and regulatory re5uirements for the Trust# (ne thing is certain F the fund industry is here to stay# The industry -as one-entity shotill DR>B -hen the :T0 monopoly -as /ro,en -hen 4!0 and %an /an, mutual fund entered the arena# This -as follo-ed /y the entry of others li,e !(0, *0%, G0%, etc#

sponsored /y pu/lic sector /an,s# 4tarting -ith an asset /ase of <s# EH crore in DRBG the industry has gro-n at a compounded a.erage gro-th rate of E?K to its current size of <s#RAAAA crore# The period DR>B-DRR3 can /e termed as the period of pu/lic sector mutual funds 6M3s"# 3rom one player in DR>H the num/er increased to > in DRR3# The party did not last long# )hen the pri.ate sector made its de/ut in DRR3-RG, the stoc, mar,et -as /ooming# The openings up of asset management /usiness to pri.ate sector in DRR3 sa- international players li,e Morgan 4tanley, Cardine 3leming, C6 Morgan, George 4oros and %apital 0nternational along -ith the host of domestic players join the party# !ut for the e5uity funds, the period of DRRG-RB -as one of the -orst in the history of 0ndian Mutual 3unds# DRRRM;+$< (3 T2+ 3:'D4 Mutual funds ha.e /een around for a long period of time to /e precise for 3B yrs /ut the year DRRR sa- immense future potential and de.elopments in this sector# This year signaled the year of resurgence of mutual funds and the regaining of in.estor confidence in these M3=s# This time around all the participants are in.ol.ed in the re.i.al of the funds ----- the $M%=s, the unit holders, the other related parties# 2o-e.er the sole factor that ga.e lifer to the re.i.al of the funds -as the :nion !udget# The /udget /rought a/out a large num/er of changes in one stro,e# $n insight of the :nion !udget on mutual funds ta1ation /enefits is pro.ided later#

0t pro.ided centre stage to the mutual funds, made them more attracti.e and pro.ides accepta/ility among the in.estors# The :nion !udget e1empted mutual fund di.idend gi.en out /y e5uity-oriented schemes from ta1, /oth at the hands of the in.estor as -ell as the mutual fund# 'o longer -ere the mutual funds interested in selling the concept of mutual funds they -anted to tal, /usiness -hich -ould mean to increase asset /ase, and to get asset /ase and in.estor /ase they had to /e fully armed -ith a -hole lot of schemes for e.ery in.estor #4o ne- schemes for ne- 06(=s -ere ine.ita/le# The 5uest to attract in.estors e1tended /eyond just ne- schemes# The funds started to regulate themsel.es and -ere all out on -inning the trust and confidence of the in.estors under the aegis of the $ssociation of Mutual 3unds of 0ndia $M30" (ne cam say that the industry is mo.ing from infancy to adolescence, the industry is maturing and the in.estors and funds are fran,ly and openly discussing difficulties opportunities and compulsions# 3irst 6hase F DRBG->?: :nit Trust of 0ndia :T0" -as esta/lished on DRB3 /y an $ct of 6arliament# 0t -as set up /y the <eser.e !an, of 0ndia and functioned under the <egulatory and administrati.e control of the <eser.e !an, of 0ndia# 0n DR?> :T0 -as de-lin,ed from the <!0 and the 0ndustrial De.elopment !an, of 0ndia 0D!0" too, o.er the regulatory and administrati.e control in place of <!0# The first scheme launched /y :T0 -as :nit 4cheme DRBG# $t the end of DR>> :T0 had <s#B,?AA crores of assets under management#

4econd 6hase F DR>?-DRR3 +ntry of 6u/lic 4ector 3unds": DR>? mar,ed the entry of non- :T0, pu/lic sector mutual funds set up /y pu/lic sector /an,s and *ife 0nsurance %orporation of 0ndia *0%" and General 0nsurance %orporation of 0ndia G0%"# 4!0 Mutual 3und -as the first non- :T0 Mutual 3und esta/lished in Cune DR>? follo-ed /y %an/an, Mutual 3und Dec >?", 6unja/ 'ational !an, Mutual 3und $ug >R", 0ndian !an, Mutual 3und 'o. >R", !an, of 0ndia Cun RA", !an, of !aroda Mutual 3und (ct RE"# *0% esta/lished its mutual fund in Cune DR>R -hile G0% had set up its mutual fund in Decem/er DRRA $t the end of DRR3, the mutual fund industry had assets under management of <s#G?, AAG crores# Third 6hase F DRR3-EAA3 +ntry of 6ri.ate 4ector 3unds": )ith the entry of pri.ate sector funds in DRR3, a ne- era started in the 0ndian mutual fund industry, gi.ing the 0ndian in.estors a -ider choice of fund families# $lso, DRR3 -as the year in -hich the first Mutual 3und <egulations came into /eing, under -hich all mutual funds, e1cept :T0 -ere to /e registered and go.erned# The erst-hile &othari 6ioneer no- merged -ith 3ran,lin Templeton" -as the first pri.ate sector mutual fund registered in Culy DRR3# The DRR3 4+!0 Mutual 3und" <egulations -ere su/stituted /y a more comprehensi.e and re.ised Mutual 3und <egulations in DRRB# The industry nofunctions under the 4+!0 Mutual 3und" <egulations DRRB# The num/er of mutual fund houses -ent on increasing, -ith many foreign mutual funds setting up funds in 0ndia and also the industry has -itnessed se.eral mergers and ac5uisitions# $s at the end of Canuary EAA3, there -ere 33 mutual funds -ith total assets of <s# D,ED,>AH crores# The :nit Trust of 0ndia -ith <s#GG,HGD crores of assets under management -as -ay ahead of other mutual funds#

3ourth 6hase F since 3e/ruary EAA3 0n 3e/ruary EAA3: 3ollo-ing the repeal of the :nit Trust of 0ndia $ct DRB3 :T0 -as /ifurcated into t-o separate entities# (ne is the 4pecified :nderta,ing of the :nit Trust of 0ndia -ith assets under management of <s#ER, >3H crores as at the end of Canuary EAA3, representing /roadly, the assets of :4 BG scheme, assured return and certain other schemes# The 4pecified :nderta,ing of :nit Trust of 0ndia, functioning under an administrator and

under the rules framed /y Go.ernment of 0ndia and does not come under the pur.ie- of the Mutual 3und <egulations# The second is the :T0 Mutual 3und *td, sponsored /y 4!0, 6'!, !(! and *0%# 0t is registered -ith 4+!0 and functions under the Mutual 3und <egulations# )ith the /ifurcation of the erst-hile :T0 -hich had in March EAAA more than <s#?B,AAA crores of assets under management and -ith the setting up of a :T0 Mutual 3und, conforming to the 4+!0 Mutual 3und <egulations, and -ith recent mergers ta,ing place among different pri.ate sector funds, the mutual fund industry has entered its current phase of consolidation and gro-th# $s at the end of 4eptem/er, EAAG, there -ere ER funds, -hich manage assets of <s#DH3DA> crores under GED schemes#

6<+4+'T $44+T :'D+< M$'$G+M+'T (3 M:T:$* 3:'D %(M6$'0+4: $7+<$G+ 4:M (3 M:T:$* 3:'D %(M6$'0+4 3(< T2+ M('T2 +1cluding fund 3und of +1cluding fund fund of (f funds 3unds of funds funds D# $!' $M<( Mutual 3und B>?GG3#A> 3BHGR#?3 BEBHEH#>> 3HRBG#H3

E# $0G Glo/al 0n.estment Group Mutual 3und 3# !enchmar, Mutual 3und G# !irla 4un *ife Mutual 3und H# !(! Mutual 3und B# %an /an, Mutual 3und ?# D!4 %hola Mutual 3und ># Deutsche Mutual 3und R# D46 Merrill *ynch Mutual 3und DA# +scorts Mutual 3und DD# 3idelity Mutual 3und DE# 3ran,lin Templeton Mutual 3und D3# 2D3% Mutual 3und DG# 24!% Mutual 3und DH# 0%0%0 6rudential Mutual 3und DB# 0'G 7ysya Mutual 3und D?# CM 3inancial Mutual 3und D># C6 Morgan Mutual 3und DR# &ota, Mahindra Mutual 3und EA# *0% Mutual 3und ED# *otus 0ndia Mutual 3und EE# Morgan 4tanley Mutual 3und E3# 6<0'%06$* Mutual 3und EG# Suantum Mutual 3und EH# <eliance Mutual 3und EB# 4ahara Mutual 3und E?# 4!0 Mutual 3und E># 4tandard %hartered Mutual 3und ER# 4undaram !'6 6ari/as Mutual 3und 3A# Tata Mutual 3und 3D# Taurus Mutual 3und 3E# :T0 Mutual 3und Grand Total

'O$ BGD?>H#BG E3?DRGB#3? R?HR#DD ERDAAG#GR EG?3A>#RR ?E>3B>#GH DD>H3E>#>G D3EG?#HG >>D3G>#?3 EBE?B3H#?G 3BDGBBB#?G DGH>HBG#A> HA?A3AA#DD H?D?>B#3B 3??EGR#?G 'O$ DB?EEHH#HB RRAGGE#E 3BE3DG#>3 3D>ABB#RG D3DG>HD#A? BDAH#HR HRDG3G?#BD D?BGB#HG DRBBA>E#RD DBD?AED#?B DADGHE>#B3 DGA>D>>#>B 3AHG?#E3 GAA?ADB#>? GDGD?DBA#BD

'O$ A DRAH#D? A A A A A A G3BH#>B 3AB3B#E A A 3RA?#3> >D>G?#3E A 'O$ HGAD>#EE A A A A A A A A DH3G#GH A A A A EDG?BG#33

'O$ HG3EH>#AR ED???AA#H> DAEGR#EE EB?ARD#RE EDD?G?#E> ?D>>3?#G?

'O$ A D>RA#BG A A A A

DD?B3GH#?> A DD?DH#GG >GG3?H#>G A GG?B#H3

EH3BGR?#HR 3DDAD#HD 33>>>EA#>B A D3HAG>D GHRRG>B#DR GGH33H#H? 3HAG>>#D3 'O$ DGHGH33#B3 RBRE>E#HH E>AHRB#D? 3DAAAH#3R DA>RHRA#EB BADH#H H?B33AG#33 D?3DB#>R DRHEA3B#HD A 3>?A#D >3DHB#GD A 'O$ HEBE>#AB A A A A A A A A

DH>3B>E#E? DH?R#?E >RRBRH#AB D3GH3G>#A? 3ADR>#?H 3B???E3#3R 3>B3>E>H#BD A A A A EDGBB?#H

M$<&+T 42$<+ (3 M:T:$* 3:'D %(M6$'0+4 $4 (' EA, C:'+ EAA?

D# $!' $M<( Mutual 3und E# $0G Glo/al 0n.estment Group Mutual 3und 3# !enchmar, Mutual 3und G# !irla 4un *ife Mutual 3und H# !(! Mutual 3und B# %an/an, Mutual 3und ?# D!4 %hola Mutual 3und ># Deutsche Mutual 3und R# D46 Merrill *ynch Mutual 3und DA# +scorts Mutual 3und DD# 3idelity Mutual 3und DE# 3ran,lin Templeton Mutual 3und D3# 2D3% Mutual 3und DG# 24!% Mutual 3und DH# 0%0%0 6rudential Mutual 3und DB# 0'G 7ysya Mutual 3und D?# CM 3inancial Mutual 3und D># C6Morgan Mutual 3und DR# &ota, Mahindra Mutual 3und EA# *0% Mutual 3und ED# *otus 0ndia Mutual 3und EE# Morgan 4tanley Mutual 3und E3# 6<0'%06$* Mutual 3und EG# Suantum Mutual 3und EH# <eliance Mutual 3und EB# 4ahara Mutual 3und E?# 4!0 Mutual 3und E># 4tandard %hartered Mutual 3und ER# 4undaram !'6 6ari/as Mutual 3und 3A# Tata Mutual 3und 3D# Taurus Mutual 3und 3E# :T0 Mutual 3und

D#BEDHDH?33 D#GABAAR>E H#B3BDEDD3D A#AEBHEBA?3 A#BRDEBE3G? A#HG>AEGHEE D#>BAGE?RB3 3#AGGHA>EDB A#A3A3EA>A? E#D>H33GBGD B#HBG?EBAEE >#??ABERGHR 3#GRHD>>?DR DD#RA3RBA33 D#DHEH?HRAH A#RA?DAABEG 3#?BGG>>ADE E#HA>BABHDH A#?EBEDE?>H A#>AE3EBR> E#>DRR?HB>? A#ADHHB>?HH DG#RDBAGHB> A#AGG>D?RHB H#AHEA?>G?G G#AR>?3>GH3 E#3E>HABB?B 3#G>DRAGDH A#A?>DH?H>3 R#HD>33RR>>

COMPA&0 PROF%L$

The %ompany -as incorporated in DRHG, -ith the o/ject of financing the purchase of commercial .ehicles and passenger cars# The company -as started -ith a paid-up capital of <s#E#AA *acs and later -ent pu/lic in DR?E# The %ompanyLs shares -ere listed in the Madras 4toc, +1change in DR?E and in the 'ational 4toc, +1change in Canuary DRR># 4u/se5uently, the e5uity shares of the %ompany ha.e /een delisted from Madras 4toc, +1change *imited M4+" -ith effect from Canuary E?, EAAG, in accordance -ith 4+!0 Delisting of 4ecurities" Guidelines, EAA3, for .oluntary delisting# 4undaram !'6 6ari/as $sset Management %ompany *td#, the in.estment managers of 4undaram !'6 6ari/as Mutual 3und, is a joint .enture /et-een the 4undaram finance Group and the !'6 6ari/as asset management# The joint .enture /rings together the 4undaram 3inance GroupLs e1perience in the 0ndian mar,et and !'6 6ari/as glo/al e1perience# 4ince its inception in DRRB, 4undaram Mutual fund has emerged as one of 0ndiaLs leading Mutual 3unds managing assets of a large in.estor /ase# The fund offers a range of in.estment options, -hich include di.ersified and sector specific e5uity schemes, fund of fund schemes, hy/rid and monthly income funds, a -ide range of de/t and treasury products and offshore funds# 4undaram !'6 6ari/as follo-s a long-term, fundamental research /ased approach to in.estment# The approach is to identify companies, -hich ha.e e1cellent gro-th prospects and strong fundamentals# The fundamentals include the 5uality of the company=s management, sustaina/ility of its /usiness model and its competiti.e position, amongst other factors# 4undaram !'6 6ari/as $sset Management %ompany has one of the largest team of research analysts in the industry, dedicated to trac,ing do-n the /est companies to in.est in#

4:'D$<$M 30'$'%+: 4undaram 3inance *imited is engaged primarily in the /usiness of financing# The acti.ities of the %ompany span sa.ings products li,e deposits and mutual funds, car and commercial .ehicle finance, insurance, home loans, soft-are solutions, /usiness process outsourcing, tyre finance, fleet cards and logistics ser.ices# 4undaram 3inance *imited has a net-or, of o.er DHA /ranches spread across 0ndia# The %ompany -as incorporated in DRHG, -ith the o/ject of financing the purchase of commercial .ehicles and passenger cars# The company -as started -ith a paid-up capital of <s#E#AA *a,es and later -ent pu/lic in DR?E#The %ompanyLs shares -ere listed in the Madras 4toc, +1change in DR?E and in the 'ational 4toc, +1change in Canuary DRR>#

Company -ierarchy

Organizational Hierarchy Managing Director Chief Executive Officer Directors Vice President National Head Zonal Head Regional Head erritory Manager !ssistant Manager rainee Manager

Mana+erial Functions "ales #ranch Re+ional Sales Mana+er Mana+er erritory Mana+er Re+ional Mana+er Assistant Mana+er 4ranch

C-AP $R 000

Theory of the study

Types of Mutual 3unds: Mutual fund schemes may /e classified on the /asis of its structure and its in.estment o/jecti.e# !y 4tructure: Open,end Funds: $n open-end fund is one that is a.aila/le for su/scription all through the year# These do not ha.e a fi1ed maturity# 0n.estors can con.eniently /uy and sell units at 'et $sset 7alue P'$7P" related prices# The ,ey feature of open-end schemes is li5uidity# Closed,end Funds: $ closed-end fund has a stipulated maturity period -hich generally ranging from 3 to DH years# The fund is open for su/scription only during a specified period# 0n.estors can in.est in the scheme at the time of the initial pu/lic issue and thereafter they can /uy or sell the units of the scheme on the stoc, e1changes -here they are listed# 0n order to pro.ide an e1it route to the in.estors, some close-ended funds gi.e an option of selling /ac, the units to the Mutual 3und through periodic repurchase at '$7 related prices# 4+!0 <egulations stipulate that at least one of the t-o e1it routes is pro.ided to the in.estor# 0nter.al 3unds: 0nter.al funds com/ine the features of open-ended and close-ended schemes# They are open for sale or redemption during pre-determined inter.als at '$7 related prices# !y 0n.estment (/jecti.e: Gro-th 3unds: The aim of gro-th funds is to pro.ide capital appreciation o.er the medium to long term# 4uch schemes normally in.est a majority of their corpus in e5uities# 0t has /een pro.ed that returns from stoc,s, ha.e outperformed most other ,ind of in.estments held o.er the long term# Gro-th schemes are ideal for in.estors ha.ing a long-term outloo, see,ing gro-th o.er a period of time# 0ncome 3unds: The aim of income funds is to pro.ide regular and steady income to in.estors# 4uch schemes generally in.est in fi1ed income securities such as /onds, corporate de/entures and Go.ernment securities# 0ncome 3unds are ideal for capital sta/ility and regular income# !alanced 3unds: The aim of /alanced funds is to pro.ide /oth gro-th and regular income# 4uch schemes periodically distri/ute a part of their earning and in.est /oth in e5uities and fi1ed income securities in the proportion indicated in their offer documents# 0n a rising stoc, mar,et, the '$7 of these schemes may not normally ,eep pace, or fall e5ually -hen the mar,et falls# These are ideal for in.estors loo,ing for a com/ination of income and moderate gro-th# Money Mar,et 3unds: The aim of money mar,et funds is to pro.ide easy li5uidity, preser.ation of capital and moderate income# These schemes generally in.est in safer

short-term instruments such as treasury /ills, certificates of deposit, commercial paper and inter-/an, call money# <eturns on these schemes may fluctuate depending upon the interest rates pre.ailing in the mar,et# These are ideal for %orporate and indi.idual in.estors as a means to par, their surplus funds for short periods# (ther 4chemes: Ta1 4a.ing 4chemes: These schemes offer ta1 re/ates to the in.estors under specific pro.isions of the 0ndian 0ncome Ta1 la-s as the Go.ernment offers ta1 incenti.es for in.estment in specified a.enues# 0n.estments made in +5uity *in,ed 4a.ings 4chemes +*44" and 6ension 4chemes are allo-ed as deduction uOs >> of the 0ncome Ta1 $ct, DRBD# The $ct also pro.ides opportunities to in.estors to sa.e capital gains uOs HG+$ and HG+! /y in.esting in Mutual 3unds# 0ndustry 4pecific 4chemes :0ndustry 4pecific 4chemes in.est only in the industries specified in the offer document# The in.estment of these funds is limited to specific industries li,e 0nfotech, 3M%G, and 6harmaceuticals etc# 0nde1 4chemes: 0nde1 3unds attempt to replicate the performance of a particular inde1 such as the !4+ 4ense1 or the '4+ HA 4ectoral 4chemes: 4ectoral 3unds are those, -hich in.est, e1clusi.ely in a specified sector# This could /e an industry or a group of industries or .arious segments such as L$L Group shares or initial pu/lic offerings#

<04&4 $44(%0$T+D )0T2 M:T:$* 3:'D4

0n.esting in mutual funds, as -ith any security, does not come -ithout ris,# (ne of the most /asic economic principles is that ris, and re-ard are directly correlated# 0n other -ords, the greater the potential ris, the greater the potential return# The types of ris, commonly associated -ith mutual funds are: Mar,et ris,: Mar,et ris, relates to the mar,et .alue of a security in the future# Mar,et prices fluctuate and are suscepti/le to economic and financial trends, supply and demand, and many other factors that cannot /e precisely predicted or controlled# 6olitical ris,:

%hanges in the ta1 la-s, trade regulations, administrated prices, etc are some of the many political factors that create mar,et ris,# $lthough collecti.ely, as citizens, -e ha.e indirect control through the po-er of our .ote indi.idually, as in.estors, -e ha.e .irtually no control# 0nflation ris,:

0nterest rate ris, relates to futures changes in interest rates# 3or instance, if an in.estor in.ests in a long F term de/t mutual fund scheme and interest rates increase, the '$7 of the scheme -ill fall /ecause the scheme -ill /e end up holding de/t offering lo-er interest rates#

!usiness ris,: !usiness ris, is the uncertainty concerning the future e1istence, sta/ility, and profita/ility of the issuer of the security# !usiness ris, is inherent in all /usiness .entures# The future financial sta/ility of a company cannot /e predicted or guaranteed, nor can the price of its securities# $d.erse changes in /usiness circumstances -ill reduce the mar,et price of the company=s e5uity resulting in proportionate fall in the '$7 of the mutual fund scheme, -hich has in.ested in the e5uity of such a company#

+conomic ris,: +conomic ris, in.ol.es uncertainty in the economy, -hich, in turn, can ha.e an ad.erse effect on a company=s /usiness# 3or instance, if monsoons fail in a year, e5uity stoc,s of agriculture F /ased companies -ill fall and '$7=s of mutual funds, -hich ha.e in.ested in such stoc,s, -ill fall proportionately#

T$X !+'+30T4:The ta1man has o.er the years, /een more or less ,ind to mutual funds, -ith la-s .arying from time to time@ the o.erall o/jecti.e has /een to encourage the gro-th of the mutual funds industry# %urrently, a .ariety of ta1 la-s apply to mutual funds, -hich are /roadly listed /elo-: %apital gains:

:nits of mutual fund schemes held for a period more than DE months are treated as long term capital assets# 0n such cases, the unit holder has the option to pay capital gains ta1 at either EAK -ith inde1ation" or DAK -ithout inde1ation#

Ta1 deducted at source: 3or any income credited or paid /y a fund, no ta1 is deducted or -ithheld at source# The rele.ant sections in the income ta1 act go.erning this pro.ision are section DRG& and DRB$# )ealth ta1: Mutual fund units are not currently treated as assets under section E of the -ealth ta1 act and are therefore not lia/le to ta1# 0ncome from units: $ny income recei.ed from units of the schemes of the mutual fund specified under section E3 D" is e1empt under section DA 33" of the act# )hile section DA E3D" e1empts income of specified mutual funds from ta1 -hich currently includes all mutual funds operating in 0ndia", section DA 33" e1empts income from funds in the hands of the unit holder# 2o-e.er, this does not mean that there is no ta1 at all on income distri/utions /y mutual fund#

0ncome distri/ution ta1: $s per pre.ailing ta1 la-s, income distri/uted /y schemes other than open-end e5uity schemes is su/ject to ta1 at EAK plus surcharge of DAK"# 3or this purpose, e5uity schemes ha.e /een defined to /e those schemes that ha.e more than HAK of their assets in the form of e5uity# (pen-end e5uity schemes ha.e /een left out of the pur.ie- of this distri/ution ta1 for a period of three years /eginning from $pril DRRR#

"ifferent Modes of Receivin+ the %ncome $arned From Mutual Fund %nvestments Mutual funds offer three methods of recei.ing income: Gro-th plan: 0n this plan, di.idend is neither declared or paid out to the in.estor /ut is /uilt into the .alue of the '$7# 0n other -ords, the '$7 increases o.er time due to such incomes and the in.estor realizes only the capital appreciation on redemption of his in.estment#

0ncome funds: 0n this plan, di.idend are paid out=s to the in.estor# 0n other -ords, the '$7 only reflects the capital appreciation or depreciation in mar,et price of the underlying portfolio# Di.idend re-in.estment plan: 0n this case, di.idend is declared /ut not paid out to the in.estor, instead, it is rein.ested /ac, into the scheme at the then pre.ailing '$7# 0n other -ords, the in.estor is gi.en additional units and not cash as di.idend# 'et asset .alue '$7" The net asset .alue of the fund is the cumulati.e mar,et .alue of the asset fund net of its lia/ilities# 0n other -ords, if the fund is dissol.ed or li5uidated, /y selling off all the assets in the fund, this is the amount that the shareholders -ould collecti.ely o-n# This gi.es ride to the concept of net asset .alue per unit, -hich is the .alue, represented /y the o-nership of one unit in the fund# 0t is calculated simply /y di.iding the net asset .alue of the fund /y the num/er of units# 2o-e.er, most people refer loosely to the '$7 per unit as '$7, ignoring the Tper unitU# )e also a/ide /y the same con.ention#

CALC#LA %O& OF &A.

The most important part of the calculation is the .aluation of the assets o-ned /y the fund# (nce its is calculated, the '$7 is simply the net .alue of assets di.ided /y the num/er of units outstanding# The detailed methodology for the calculation of the asset .alue is gi.en /elo-#

$sset .alue is e5ual to

4um of mar,et .alue of sharesOde/entures Vli5uid assetsOcash held, if any Vdi.idendOinterest accrued $mount due on unpaid assets +1penses accrued /ut not paid

Details on the a/o.e items:

3or li5uid sharesOde/entures, .aluation is done on the /asis of the last or closing mar,et price on the principal e1change -here the security is traded# 3or illi5uid and unlisted andOor thinly traded sharesOde/entures, the .alue has to /e estimated# 3or shares, this could /e the /oo, .alue per share or an estimated mar,et price# 0f suita/le /enchmar,s are a.aila/le# 3ore de/entures and /onds, .alue is estimated on the /asis of yields of compara/le li5uid securities after adjusting for illi5uidity# The .alue of fi1ed interest /earing securities mo.es in a direction opposite to interest rate changes .aluation of de/entures and /onds is a /ig pro/lem since most of them are unlisted and thinly traded# This gi.es considera/le lee-ay to the $M%=s on .aluation and some of the $M%=s are /elie.ed to ta,e ad.antage of this and adopt fle1i/le .aluation policies depending on the situation#

0nterest is paya/le on de/enturesO/onds on periodic /asis say e.ery B months# !ut, -ith e.ery passing day, interest is said to /e accrued, at the daily interest rate, -hich is calculated /y di.iding the periodic interest payment -ith the num/er of days in each period# Thus, accrued interest on a particular day is e5ual to the daily interest rate multiplied /y the num/er of days since the last interest payment date# :sually, di.idends are proposed at the time of annual general meeting and /ecome due on the record date# There is a gap /et-een the dates on -hich it /ecomes due and the actual payment date# 0n the immediate period, it is deemed to /e T$ccruedU# +1penses including management fees, custody charges etc# $re calculated on daily /asis#

M# #AL F#&" %&.$S %&! S RA $!%$S 4ystematic in.estment plan 406=s": These are /est suited for young people -ho ha.e started there careers and needs to /uilt there -ealth# 4ips entail the in.estor to in.est a fi1ed sum of money at regular inter.als in the mutual fund schemes the in.estor as chosen, an in.estor opting for sip in 1yz mutual fund scheme -ill need to in.est certain sum on money e.ery monthO5uarterOhalf yearly in the scheme# !y in.esting through sip, one ends up /uying more units -hen the price is lo- and fe-er units -hen the price is high# 2o-e.er, o.er a period of time these mar,et fluctuations are generally a.eraged# $nd the a.erage cost of the in.estment is often reduced# 0t is far /etter to in.est small amount of money regularly, rather than sa.e up to ma,e a large in.estment# This is /ecause -hile sa.ing is in the lump sum, it may not earn much interest#

4ystematic -ithdra-al plan 4)6=s": These plans are suited for people nearing retirement #0n these plans, an in.estor in.est in a mutual fund scheme and is allo-ed to -ithdra- a fi1ed sum of money at regular inter.als to ta,e care of its e1penses# 4ystematic transfer plan 4T6=s": They allo-s in.estor to transfer on a periodic /asis a specified amount from one scheme to another -ithin the same fund family- meaning t-o schemes /elonging to the same mutual fund# $ transfer -ill /e treated as redemption of units from the scheme from -hich the transfer is made# 4uch redemption or in.estment -ill /e at the applica/le '$7# This ser.ice allo-s the in.estor to manage his in.estments acti.ely to achie.e his o/jecti.es# Many funds do not e.en charge any transaction fees for his ser.ice- an added ad.antage for the acti.e in.estor#

%2$6T+< 07

Data analysis and interpretation

Data $nalysis and 0nterpretation 0ntroduction: $sset allocation strategies of .arious select mutual fund schemes are presented in the follo-ing ta/les# +5uity 3unds: 4undaram !'6 6ari/as Gro-th 3und G": 0n.estment 0nformation 3und type 0n.estment 6lan $sset 4ize <s cr" Min #0n.estment *ast Di.idend !onus $sset $llocation +5uity De/t Mutual 3unds Money Mar,et %ash O %all (pen-+nded Gro-th EB#AH Cul-3D-EAA>" <s H,AAA '#$# '#$# 6ercentage held A#AA ?3#>? '#$ A#AA EB#D3

Asset Allocation(% ) Sundaram BNP Paribas Growth fund

0% 26% Equity Debt 0% Mutual Funds Money Market 74% Cash / Call

4%2+M+ 6+<3(<M$'%+: Dmonth 3month Bmonth

Dyear

-A#AHB3H

A#AB

A#3BEA?H

-A#DBA>R

!irla $d.antage 3und F Gro-th 0n.estment information 3und Type 0n.estment 6lan $sset 4ize <4 cr" Min #0n.estment *ast Di.idend !onus $sset $llocation K" +5uity De/t Money Mar,et %ash O %all (pen- +nded Gro-th G33#BD May-3A-EAA>" <s# H,AAA '#$ '#$ 6ercentage held >G#>R A#AA A#AA DH#DA

Asset Allocation (% ) of Birla Advantage Fund (G)

5% Equity Cash / Call 85%

4%2+M+ 6+<3(<M$'%+ D month 3 months B months -A#AA??R A#3HEA?H -A#AEHR3

D yrsW -A#DHG3R

2D3% +5uity 3und F Gro-th 0n.estment 0nformation 3und Type 0n.estment 6lan $sset 4ize <s cr" Min# 0n.estment *ast Di.idend !onus $sset $llocation K" +5uity De/t Mutual fund Mutual Mar,et %ash O %all (pen- +nded Gro-th G,A3A#RE May-3A-EAA>" <s#H,AAA '#$ '#$ 6ercentage held R>#HD A#AA '#$ D#>H -A#3B

Asset Allocation (% ) of H F! "#uit$ Fund (G)

2%

0% Equity Money Market Cash / Call !8%

4%2+M+ 6+<3(<M$'%+ D month A#A>ARGD 3 months A#DHDEA3 B months A#D3BHH? D yrsW -A#A>GGG

0%0%0 6rudential Dynamic 6lan F Gro-th 0n.estment 0nformation 3und Type 0n.estment Type 0n.estment 6lan $sset 4ize <s cr" *ast Di.idend !onus $sset $llocation K" +5uity De/t Mutual 3und Money Mar,et %ash O %all (pen-+nded Gro-th D,?>3#DE May-3A-EAA>" <s# H,AAA '#$ '#$ 6ercentage held >H#EG 3#?> '#$ A#AA DD#AD

Asset Allocation (% ) of %!%!% Pru

$namic Plan (G)

4%

% Equity Debt Cash / Call 85%

4%2+M+ 6+<3(<M$'%+ D month A#ARDHR? 3 months A#DDRGGR B months A#A>EHGG D yrsW -A#AB>R>

+S:0T; 3:'D ('+ M('T2 %(M6$<04(' (3 <+T:<'" %ompany 'ame and 3und 2D3% +5uity 3und - Gro-th !irla $d.antage 3und - Gro-th 0%0%0 6rudential Dynamic 6lan F Gro-th 4undaram !'6 6ari/as Gro-th $/solute return 5.56578/ ,5.55<<7 5.57/:7< ,5.5:>=: Mean return 5.5596: 25.96;3 ,5.=/6/< 2,=/.6/;3 5.55=9/> 25.=9;3 , 5.5598725.9:; 3 4tandard De.iation 5.5//<=> /./59977 5.5/9767 5.5/6597 7ariance A#AAAD3??33 D#EDHAB3A>H A#AAADB>?DG A#AAA3EH

&N" '&N(H &F ")*%(+ F*N

0# 5 0# 0#05 -A.*" 0 "0#05 "0# "0# 5 "0#2 (%'" P",%& &F NA4 7 0 $ 6 ! 22 25 28 %undara& '() *aribas"+ro,th -C-C- )urdential Dyna&i. *lan"+ro,th 'irla /d0anta+e 1und "+ro,th 2DFC Equity Fund " 3ro,th

F%&"%&!S* 3rom the a/o.e ta/le -e can see that 0%0%0 6rudential Dynamic 6lan - Gro-th fund is gi.ing the highest a/solute return o.er D months A#ARDHR?" -hile it is highest in term of fluctuation of returns .ariance=A#AAADB>?DG"# 2D3% +5uity 3und - Gro-th is ha.ing the minimum fluctuation in return generated .ariance=A# A#AAAD3??33"#

"$%%E" &ON"' a" 3or in.estor -ith high ris, appetite go for: 4undaram !'6 6ari/as - Gro-th /" 3or in.estor -ith moderate ris, appetite: Go for 0%0%0 6rudential Dynamic 6lan Gro-th c" 3or in.estor -ith lo- ris, appetite: 2D3% +5uity 3und - Gro-th +S:0T; 3:'D 40X M('T24 %(M6$<04(' (3 <+T:<'" %ompany 'ame and 3und 2D3% +5uity 3und - Gro-th !irla $d.antage 3und - Gro-th 0%0%0 6rudential Dynamic 6lan Gro-th 0% 4undaram !'6 6ari/as Gro-th $/solute return A#D3BHH? -A#AEHR3 A#A>EHGG A#3BEA?H Mean return A#AAA>R? A#ADBRH A#AAABE> A#AADRAR 4tandard De.iation A#AD>R?> D#AEAD3D A#ADREE? A#AEGED> 7ariance A#AAA3BAD D#AGABB?E A#AAA3BRB A#AAAH>B

S%/ '&N(H &F ")*%(+ F*N

0#6 0#4 0#2 0 -A.*" "0#2 "0#4 "0#6 "0#8 " " #2 (%'" P",%& &F NA2 4 6 8 0 2 4 6 8 %undara& '() *aribas"+ro,th -C-C- )urdential Dyna&i. *lan"+ro,th 'irla /d0anta+e 1und " +ro,th 2DFC Equity Fund " 3ro,th

F%&"%&!S* 3rom the a/o.e ta/le -e can see that 4undaram !'6 6ari/as Gro-th fund is gi.ing the highest a/solute return o.er B months A#3BEA?H" -hile it is highest in term of fluctuation of returns .ariance=A#AAAH>B"# 2D3% +5uity 3und - Gro-th is also ha.ing the less fluctuation in return generated .ariance=A#AAA3BAD"#

"$%%E" &ON"' a" 3or in.estor -ith high ris, appetite go for: !irla $d.antage 3und - Gro-th /" 3or in.estor -ith moderate ris, appetite: Go for 2D3% +5uity 3und F Gro-th c" 3or in.estor -ith lo- ris, appetite: 4undaram !'6 6ari/as Gro-th

Sundaram 4&P Paribas fund 2!ro?th3 "A $ S@P C&' &%F 0 D-jun-AH EA>?#H H 3-(ctAH D-3e/AB D-CunAB 3-(ctAB D-3e/A? D-CunA? D-(ctA? D-3e/A> E-CunA> O AL EB3A#A H ER?D#H H ERBE#E H 3HBR#B GD3?#E GER?#A H HAB>#R H H3D?#E H G?3R#B R$ #R& &A. 2'3 3G#HDE R EH#R>?G DE#R>GHG -A#3DER? G3#B>3 E HD#R>G R H3#EB> R BD#D3B H ?A#BBG H ?H#?EB ? >>#BG? 3 RG#3H3 H >G#3?E B EB#H?ABG DR#AAG33 E#GBRRG> B?H#3GH DB>#HR> G A#AR?RG R GEA#3?E > EHE#>3R R DG#RE>3 ? 3EE#B>B R E3#RRG> E DD>#ADR R /77>.66 ?AH#RRR E 3BD#DBG B B#DAABG 3 ED>#DGA R EGE#>>H R HD#3D>? G ERD#DDB > GD#G3GH > DDD#>R> 3 95=5.5> BRA#HAE EGB#?BE B -A#??3AD DH#BE?R>GE G >#ABDB?A>E H >#G?E?DE3H B 3#>EBR33DH H G#BGED3?HR E 3#??>RHADH E B#DDRG>HG> > -G#HAHBRAG> ED#HEA>H>3 D =.<9>:/$, R$ #R& '9 203 09 '0 20,0/3

20,0

EGG#E

BG#RR

?D#?>

EA#HA3 DH#RAARG 3#>B3?EG

DG#?BRHR DH#H>G> ?#DB3?D

3AE#>EA R EG?#>D3 E?#B?>B

DG#BG

ED#HG

DG#E>

D?#RB3GR G#>R>GH -DA#>B3?

D?#ABEDH B#G3BR? -DA#H?>E

3AB#GRH B 3D#H3DD > DDG#RD> G /7><.<8

3?#GG

EA#3A

GB3#D

75.79866

76.86=78

7:9.=

57

CALC#LA %O& OF A4O.$ A4L$ 4eta 5.7599 Alfa /.69:7: Standard "eviation /5.96>7 Coefficient of Sharpe determination ratio 2SR3 5.7:77 6.>:599 reynor Ratio 2 R 76.>977: 1ensen Ratio 21R3 9.59>/

&ote 2% have taAen RF benchmarA 7.: the fiBed deposit of banA interestC the days duration is = year3

4irla Advanta+e Fund D !ro?th "A $ S@P C&' &%F 0 D-jun-AH EA>?#H H 3-(ctEB3A#A AH H D-3e/AB D-CunAB 3-(ctAB ER?D#H H ERBE#E H 3HBR#B R$ #R& &A. 2'3 BB#>B EH#R>?G >G#3G DE#R>GHG R>#G -A#3DER? RB#A> EA#HA3 DDD#3 B DH#RA3GD -E#3H??E DG#?BRH R DB#B?ABE E#GBRRG > H#HH>>B EHE#RD> B EB#DGGD> DR#AAG3 3 EB#H?AB G B>3#HD> E E??#RAR H B?R#GDR G EDB#GBA G A#?3?>R E 3EB#AB? B DB#AGDGD? ? B#HB?>H>R E DE#GBAG>3 B H#>AABH3> E R$ #R& '9 203 09 '0 20,0/3 20,039

EH?#3E?

G3#D3B?

DHH#EB3

33#BG?H

D-3e/A? D-CunA? D-(ctA? D-3e/A> E-CunA>

GD3?#E GER?#A H HAB>#R H H3D?#E H G?3R#B

DH#RAARG 3#>B3?EG

DER#E D D3E#R ?

DH#H>G> DB#AERAR ?#DB3?D E#RARRRD D?#ABED H DH#??> B#G3BR? 3#33EEHD -DA#H?>E -DE#ADE> 76.86=7 8

EHB#R3D R >#GB>AH EG>#RGH D DD#DA3> R DGG#3A? R /667.>> 9

EHG#>?? ? DD#EG3G E>3#GE? > DB#3EE> B D3A#HA3 ? /7/7.5> /

H#REB33G> 3 ?#DRE?B>H D H#B?HE3HA G B#??AHARE ? EE#DDHH>3 ? 69.=7>777 8

3H#DEDG

HD#?3HR

D?#RB3GR DH3#R H G#>R>GH DHR#A > -DA#>B3? D3R#R ? 75.79866 69.=7<

3E#EA>E

GH#>3R>

G>R#ARR

O AL

//8=.=6

CALC#LA %O& OF A4O.$ A4L$ 4eta /.556 Alfa ,/.59: Standard Coefficient of Sharpe "eviation determination ratio 2SR3 //.9</= 5.7=79 8.<6//> reynor Ratio 2 R :=.8>9= 1ensen Ratio 21R3 ,/.5/>6

&ote 2% have taAen RF benchmarA 7.: the fiBed deposit of banA interestC the days duration is = year3

-"FC $Euity Fund D !ro?th "A $ S@P C&' &%F 0 D-jun-AH EA>?#H H 3-(ctEB3A#A AH H D-3e/AB D-CunAB 3-(ctAB D-3e/A? D-CunA? D-(ctA? D-3e/A> E-CunA> O AL 78.<>899 ER?D#H H ERBE#E H 3HBR#B GD3?#E GER?#A H HAB>#R H H3D?#E H G?3R#B R$ #R& &A. 2'3 ?D#?> EH#R>?G RG#3EG DE#R>GHG DDE#G> 3 -A#3DER? DDE#3E ? EA#HA3 DH#RAARG 3#>B3?EG DBD#RA 3 D?#RB3GR D>G#DB H G#>R>GH DRD#A? H -DA#>B3? DB?#E3 ? 75.79866 76.86=7 8 9=5=.6: 9 9576.76 / 78.<>89/< -DE#G?H? 3#?HEA? -DA#H?>E DHH#BG3 > D3H#H3E B D3#?HAED B#G3BR? DG#A?>A 3 D>#3?R3 3 B#EEHDAR D?#ABED H D3E#B3 G DHE#GD H D>#A?>G? DH#H>G> DG#RD3R? ?#DB3?D 3>#?HDR > D>R#AB> E EG#AHED EG?#AAD ? -A#D3>BR DG#?BRH R 3EB#>3D EEE#GEB B DR#EHD?3 E#GBRRG > 3D#GA?A> DR#AAG3 3 3?A#BER A#ADRE3 G EB#H?AB G R>B#GAG H >DB#D>> 3 EGR#R?G R A#AG3GA H 3?A#BBE ? E3?#DGB E ED#3AG3D3 R#DG>RB>A R DA#EGDGG? B ?#R?H?A?3 3 G#>DDED3? R 3#>??BHAR E 3#BG?GG>G B B#3HAB>R> H EE#H?>G>R G R$ #R& '9 203 09 '0 20,0/3

20,0

GH3#

>3#?

DAG#

B3#B

E3#D

DH#A

D3#3

GA#3

HAR#

/=5<

CALC#LA %O& OF A4O.$ A4L$ 4eta /.5:7 Alfa ,5./> Standard Coefficient of Sharpe "eviation determination ratio 2SR3 /9.55 5.7><55 :.:99 reynor Ratio 2 R >9.:<99 1ensen Ratio 21R3 ,5./:9

&ote 2% have taAen RF benchmarA 7.: the fiBed deposit of banA interestC the days duration is = year3

%C%C% Prudential "ynamic Plan D !ro?th "A $ S@P C&' &%F 0 D-jun-AH EA>?#H H 3-(ctEB3A#A AH H D-3e/AB D-CunAB 3-(ctAB D-3e/A? D-CunA? D-(ctA? D-3e/A> ER?D#H H ERBE#E H 3HBR#B GD3?#E GER?#A H HAB>#R H H3D?#E H R$ #R& &A. 2'3 E>#??B G EH#R>?G 3>#>AA E DE#R>GHG GG#D3G > -A#3DER? G>#?>3 3 EA#HA3 DH#RAARG 3#>B3?EG D?#RB3GR G#>R>GH ??#R3B D >D#B>B D DD#DRHHR B#G3BR? G#>DDB3G HH#BD3 E B>#DGD 3 ?A#A>R E DG#AAAGR DH#H>G> EE#HE?ED ?#DB3?D E#>H>BDR D?#ABED H HA?#G?H >#D?D?A D DEH#3GD 3 E3#DHD> E DA#H3EH DG#?BRH R D3#?G>R E#GBRRG > 3G#>33GD DR#AAG3 3 EB#H?AB G DED3#3B B D>R#A3E E DDA#R33 ? DRB#AD3 ? RAH#EER ? D?>#HE3 E -3#ERB3G E>?#AHD R 3H>#EA3 > DD#AGGR D EAD#DDD > E3#HBRH H EG#?3AB G 3#BGBD3 > A#GER?G H 3#>R??E > DE#GEGG H -?#EGGDG D#ARE>3 D -H#ERDD3 R$ #R& '9 203 09 '0 20,0/3

20,039

BDD#BA

D3#ERG

A#D>GB

DH#DRE

DHG#3B

HE#G??

D#DRGE

E?#RRB

E-CunG?3R#B A> O AL

-DA#>B3? 75.79866

?G#HER D

-DA#H?>E ->#?BDHR /5:.<8>6 76.86=7 8

?B#?BHG 3 98:5.9: /

RH#D>3E B 95:>.>9 9

-D>#>BG3 /8.69/7 /

3HH#>B

/9=9./

CALC#LA %O& OF A4O.$ A4L$ 4eta 5.7/<= Alfa 9.869 Standard Coefficient of Sharpe "eviation determination ratio 2SR3 //.< 5.6<5>: >.>5/< reynor Ratio 2 R 68.95= 1ensen Ratio 21R3 9.<5:

&ote 2% have taAen RF benchmarA 7.: the fiBed deposit of banA interestC the days duration is = year3

Findin+s and Su++estions* CompanyFs &ame %C%C% Prudential dynamic plan,!ro?th 4eta Alfa Standard "eviation //.< Coeffici ent of determi nation 5.6<5>: Sharpe ratio 2SR3 >.>5/< reynor 1ensen Ratio Ratio 2 R 21R3 68.95= 9.<5:

5.7/< =

9.869

-"FC eEuity fund,!ro?th 4irla advanta+e fund,!ro?th Sundaram 4&P Paribas, !ro?th Alpha @ 4eta*

/.5:7 /.556 5.759 9

,5./> ,/.59: /.69:7 :

/9.55 //.9</= /5.96>7

5.7><55 5.7=79 5.7:77

:.:99 8.<6//> 6.>:599

>9.:<9 :=.8>9 76.>977 :

,5./:9 ,/.5/>6 9.59>/

The a/o.e ta/le sho-s that 0%0%0 6rudential dynamic plan-Gro-th fund is comparati.ely more .olatile -ith a /eta of , A#RD?3 though compared to the mar,et all the funds are safer to in.est# $nd also the alpha .alues of fe- funds are positi.e and fe- funds are negati.e# 0%0%0 6rudential dynamic plan-Gro-th is sho-ing an alpha of E#G>E -hich suggests that the fund is -ell di.ersified and 5uite efficient in reducing the impact of mar,et ris,# Co,efficient of "etermination* $ll company is ha.ing positi.e co- efficient of determination SharpeFs Ratio @ reynorFs Ratio* 4harp 0n the a/o.e ta/le, the Treynor=s ratio for !irla $d.antage 3und - Gro-th follo-ed /y 0%0%0 6rudential Dynamic 6lan - Gro-th and then 2D3% +5uity 3und - Gro-th# 0t suggests that !irla $d.antage 3und - Gro-th is gi.ing highest returns o.er the ris, free returns after ta,ing the mar,et ris, in to account# (n the other hand 2D3% e5uity fundGro-th is gi.ing the lo-est returns# The sharpe=s ratio of !irla $d.antage 3und - Gro-th fund highest suggesting that after ta,ing the total ris, in to consideration the fund is gi.ing good return return o.er and a/o.e the ris, free returns# 3rom the a/o.e it can /e suggested that 2D3% e5uity fund-Gro-th can /e ruled out of in.estment decision alternati.e# $mong the other three funds !irla is gi.ing higher returns ta,ing lo-er ris, as compared to 4undaram !'6 6ari/as-Gro-th and 0%0%0, and 2D3% -hich is gi.ing lo-er returns# De/t 3und

Sundaram 4&P Paribas 4ond Saver 2!3*

0n.estment 0nformation 3und Type 0n.estment 6lan $sset 4ize <s cr" Min# 0n.estment *ast Di.idend !onus $sset $llocation K" +5uity De/t Mutual 3unds Money Mar,et %ashO%all

(pen-+nded Gro-th EB#AH jul-3D-EAA>" <s H,AAA '#$# '#$# 6ercentage held A#AA ?3#>? '#$# A#AA EB#D3

Asset Allocation(% ) Sundaram BNP 0aribas Bond Saver(Growth)

0% 26% Equity Debt 0% Mutual Funds Money Market 74% Cash/Call

4%2+M+ 6+<3(<M$'%+ D month -A#AA?D?D 3 months A#AAHHGD B months -A#AEGHD D year -A#ABRBB

%C%C% Prudential 4lended Plan , Option 4 D !ro?th*

0n.estment 0nformation 3und Type 0n.estment 6lan $sset 4ize <s cr" Min #0n.estment *ast Di.idend !onus $sset $llocation K" +5uity De/t Money Mar,et %ash O %all

(pen-+nded Gro-th DB#RA May-3A-EAA>" <s# H,AAA '#$ '#$ 6ercentage held A#AA >E#D3 A#AA D?#>?

Asset Allocation (% ) of %!%!% Pru Blended Plan 1 B (G)

8% Debt Cash / Call 82%

4%2+M+ 6+<3(<M$'%+ D month 3 months B months ,5.5575/ ,5.59=/< ,5.5>5/8

D yrsW ,5.//7=7

-"FC -i+h %nterest Fund D !ro?th*

0n.estment 0nformation 3und Type 0n.estment 6lan $sset 4ize <s cr" Min # 0n.estment *ast Di.idend !onus $sset $llocation K" +5uity De/t Money Mar,et %ash O %all

(pen-+nded Gro-th GE#?G May-3A-EAA>" <s,HAAA '#$ '#$ 6ercentage held A#AA B?#?E E>#?B 3#HE

Asset Allocation (% ) of H F! High %nterest Fund (G)

4% 2!% Debt Money Market 67% Cash / Call

4%2+M+ 6+<3(<M$'%+ D month 5.5589/< 3 months 5.55:::8 B months ,5.58:/> D yrsW ,5.5<>6=

4irla 4ond %ndeB Fund D !ro?th* 0n.estment 0nformation 3und Type 0n.estment 6lan $sset 4ize <s cr" Min # 0n.estment *ast Di.idend !onus $sset $llocation K" +5uity De/t Money Mar,et %ash O %all (pen-+nded Gro-th A#3H May-3A-EAA>" <s#EH,AAA '#$ '#$ 6ercentage held A#AA 33#GA A#AA BB#BA

Asset Allocation (% ) of Birla Bond %nde2 Fund 1 Plan A

$$% Debt Cash / Call 67%

4%2+M+ 6+<3(<M$'%+ D month ,5.558/6 3 months ,5.5/:< B months ,5.5=67: D yrsW ,5.5<>66

D+!T 3:'D ('+ M('T2 %(M6$<04(' (3 <+T:<'" %ompany 'ame and 3und !irla !ond 0nde1 3und F Gro-th 2D3% 2igh 0nterest 3und F Gro-th 0%0%0 6rudential !lended 6lan (ption ! F Gro-th 4undaram !'6 pari/as /ond sa.er-Gro-th $/solute return -A#AAGD> A#AAGED? -A#AARAD Mean return -A#AAADH A#AAADHD -A#AAA3E 4tandard De.iation A#AAAEHB A#AAA>3D A#AAAEAE 7ariance A#AAAAAAABH A#AAAAAABR A#AAAAAAAG

-A#AA?D?D

-A#AAAED

A#AADBDG

A#AAAAAEBA

&N" '&N(H
0#008 0#006 0#004 -A.*" 0#002 0 "0#002 "0#004 "0#006 4 7 0 $ 6

"B( F*N
'irla bond inde4 1und" +ro,th 2DFC hi+h interest 1und "+ro,th

! 22 25 28 $

-C-C- *rudential blended *lan o*tion '"+ro,th %undara& *aribas balan.e 1und"+ro,th

(%'" P%,"& &F NA-

F%&"%&!S* 3rom the a/o.e ta/le -e can see that 2D3% 2igh 0nterest 3und F Gro-th fund is gi.ing the highest a/solute return o.er D months A#AAGED?" -hile it is highest in term of fluctuation of returns .ariance=A#AAAAAABR"# 0%0%0 6rudential !lended 6lan - (ption ! Gro-th is ha.ing the minimum fluctuation in return generated .ariance=A#AAAAAAAG"# "$%%E" &ON"'

a"3or in.estor -ith high ris, appetite go for 4undaram !'6 6ari/as /ond sa.er-Gro-th /"3or in.estor -ith moderate ris, appetite: Go for 2D3% 2igh 0nterest 3und - Gro-th c"3or in.estor -ith lo- ris, appetite: 0%0%0 6rudential !lended 6lan - (ption ! F Gro-th D+!T 3:'D 40X M('T24 %(M6$<04(' (3 <+T:<'" %ompany 'ame and 3und !irla !ond 0nde1 3und F Gro-th 2D3% 2igh 0nterest 3und F Gro-th 0%0%0 6rudential !lended 6lan (ption ! F Gro-th 4undaram !'6 6ari/as /alance fund-Gro-th $/solute return -A#A3>RH -A#AGHDB -A#ABADG Mean -A#AAAEE -A#AAAEB -A#AAA3H 4tandard De.iation A#AAA3BB A#AADEBE A#AAA>3E 7ariance A#AAAAAAD33 A#AAAAADHRE A,AAAAAABRE

-A#AEGHD

-A#AAAD3

A#AADEE3

A#AAAAADH

S%/ '&N(H &F

0#0 0#008 0#006 -A.*" 0#004 0#002 0 "0#002 "0#004 "0#006 "0#008 (%'" P",%& 22 4$ 64 85

"B( F*N
'irla bond inde4 1und

2DFC 2i+h -nterest Fund " 3ro,th 06 27 48 6! -C-C- )rudential 'lended )lan " 5*tion ' " 3ro,th %undara& '() )aribas 'ond %a0er " 3ro,th

&F NA-

F%&"%&!S* 3rom the a/o.e ta/le -e can see that 4undaram !'6 6ari/as /alance fund-Gro-th is gi.ing the highest a/solute return o.er D months -A#AEGHD" -hile it is highest in term of fluctuation of returns .ariance=A#AAAAADH"# !irla !ond 0nde1 3und - Gro-th is ha.ing the minimum fluctuation in return generated .ariance=A#AAAAAAD33"#

"$%%E" &ON"' a"3or in.estor -ith high ris, appetite go for 2D3% 2igh 0nterest 3und F Gro-th /"3or in.estor -ith moderate ris, appetite: Go for 0%0%0 6rudential !lended 6lan (ption ! F Gro-th c"3or in.estor -ith lo- ris, appetite: 4undaram !'6 6ari/as /alance fund-Gro-th Sundaram 4&P Paribas 4ond Saver 2!3* "A $ S@P C&' &%F 0 EA>?# HH EB3A# AH ER?D# HH ERBE# EH R$ # R&S 2'3 &A. R$ #R '9 &S 203 09 '0 20,0/3 20,0/39

D-junAH 3-(ctAH D-3e/AB D-CunAB

3G#HDE R EH#R>? G DE#R>G HG A#3DER ? EA#HA3 DH#RAA RG G3#B>3 EB#H?AB E G HD#R>G R DR#AAG3 3 H3#EB> E#GBRRG R > B?H#3GH D#HAHB EB 3D#>>? H? A#3H3DBE 3A> D#ADD>>G AGB A#R3GGR? ADR A#EHR>H3 3R3 A#EDBBAB D>R A#A>RGR3 HDR A#GHBB?R A?G E#H>H>R? EE A#DEG?E G D#AE3RA R A#>?3E> H

DB>#HR> G A#AR?RG R GEA#3?E > EHE#>3R R

A#3EER >H A#GDBR 3H 3#3>H> AG D#>HR3 R3

?#3?R3 GR A#EAEA > 3?#?EB BH ED#B>E GB

3-(ctAB D-3e/A?

3HBR# B GD3?# E

BD#D3B DG#?BRH H R ?A#BBG H DH#H>G>

A#AB?HE G A#AGBRD >

D-CunA? D-(ctA? D-3e/A>

GER?# AH HAB># RH H3D?# EH

3#>B3? EG D?#RB3 GR G#>R>G H

?H#?EB ?#DB3?D ? >>#BG? D?#ABED 3 H RG#3H3 B#G3BR? H

DG#RE>3 ? 3EE#B>B R E3#RRG> E

E#EEEE DE G#DG>> >G

H#?HRB >B 3B#H>R G> EA#GA? G3

A#AA>AA R A#EA>HH B B#B>B>B G

D?#3HB 3>

E-CunA>

G?3R# B

DA#>B3 ?

>G#3?E B DA#H?>E

DD>#ADR R

A#?>AG E3

R#HR?D B

A#BRB?>B BA>

A#G>HHD E

O A L

75.798 66

76.86=7 8

/77>.66 8

=/.776 >8

/:/.>= =8

,=.<:>=6

7.:9:=5 /

CALC#LA %O& OF A4O.$ A4L$* 4eta ,5.<6957 Alfa /7.:556 Standard Coefficient of Sharpe "eviation determination ratio 2SR3 /.596<< ,5.<78/76 6>.87:: reynor Ratio 2 R ,//=.<<</ 1ensen Ratio 21R3 ,98.7=89

&ote 2% have taAen RF benchmarA 7.: the fiBed deposit of banA interestC the days duration is = year3

4irla 4ond %ndeB Fund D !ro?th: "A $ S@P C&' &%F 0 EA>?#H H EB3A#A H ER?D#H H ERBE#E H R$ #R &S 2'3 &A. R$ #R &S 203 '9 09 '0 20, 0/3 20, 0/39

D-junAH 3-(ctAH D-3e/AB D-CunAB

DA#?EA ? EH#R>?G DA#R3D E DE#R>GHG DD#AE3 R -A#3DER? DD#D>> H D#GR3DDR A#>G>A3D A#AR?RG R D#RB3GRD DB>#HR> G B?H#3GH 3#>HHER > A#?DRDH ? E#EERGA B HD#AEBA3 DD#ADD3 -A#GB?3 >#D3RE ? R#EHG? 3 >#BARB G BB#EG?? B >H#BH ?G#DEHR D

3-(ctAB D-3e/A? D-CunA? D-(ctA? D-3e/A> E-CunA>

3HBR#B GD3?#E GER?#A H HAB>#R H H3D?#E H G?3R#B

EA#HA3 DD#3R3 G DH#RAARG DD#H>? G 3#>B3?EG DD#?B? 3 D?#RB3GR DE#AD? H G#>R>GH DE#ERD E -DA#>B3? DE#G>> G D#BAGG E#E??HDE E#DEBE3D D#HHEHG> D#?AE?G D#>3D3GH

GEA#3?E > EHE#>3R R DG#RE>3 ? 3EE#B>B R E3#RRG> E DD>#ADR R

3#3H3>E 3 E#>RR3E G E#GDAGA ? G#HEA>H R H#D>?AB D E#H?GAR R

3?#HG>AH E?#A?HD? H#RR>BDR 3>#DRGH3 DD#DHBE> -D?#GER?

>#E?DG E >#GAAA E >#HHAE D ?#R?BH 3 ?#>EHE H >#GR>3 B , <:.:9: 8

B>#GDB3 D ?A#HBA3 3 ?3#DABD E B3#BEHA D BD#E3GH D ?E#EEED E

O A L

75.79866 /:.=7789

/77>.66 8

9<.<878 =

/>8.//=

>=:./66 /

CALC#LA %O& OF A4O.$ A4L$ 4eta 5.55<79 Alfa /.>=/ Standard Coefficient of Sharpe "eviation determination ratio 2SR3 6.8557 5.9957<< ,/.::7 reynor Ratio 2 R ,/>:8./ 1ensen Ratio 21R3 /5./5

&ote 2% have taAen RF benchmarA 7.: the fiBed deposit of banA interestC the days duration is = year3

2D3% 2igh 0nterest 3und F Gro-th: "A $ S@P C&' &%F 0 D-jun-AH EA>?#H H 3-(ctEB3A#A AH H D-3e/AB D-CunAB 3-(ctAB D-3e/A? D-CunA? D-(ctA? D-3e/A> E-CunA> O AL ER?D#H H ERBE#E H 3HBR#B GD3?#E GER?#A H HAB>#R H H3D?#E H G?3R#B R$ #R&S &A. 2'3 E3#3 EH#R>?G E3#B>E R DE#R>GHG E3#??? B -A#3DER? E3#RHR G EA#HA3 EG#3HA ? DH#RAARG EG#G>? B 3#>B3?EG EG#HEG 3 D?#RB3GR EH#3?3 H G#>R>GH EB#BHH B -DA#>B3? EB#B?? B 75.79866 /=.<://6 A#A>EH3G /77>.66 8 H#AHERD DD>#ADR R 3#GBEB>> E3#RRG> E A#DGR>?E 3EE#B>B R A#HBEEAD DG#RE>3 ? D#B33D?R EHE#>3R R A#?BGH>H A#3RR>B? A#AR?RG R GEA#3?E > D#BG33G> DB>#HR> G B?H#3GH E#?AAHR D A#DHR>R 3 A#H>GHR E#BB?E? H A#3DBA? D A#AEEGB E DD#RRAE D EH#H3D> R A#AAB>D E 8=.7<76 EG#3GGA H DE#H>GB > -D#A??HH D>#>BR> E DH#33>? G 3#?D3>H E DG#HAA> -A#DHGGB -DA#RGBE <<./<=> 7 >#GHRG E R#?AE> R R#33>D ? >#GBRH > R#HGAH B R#RHE> R B#BGAA ? H#AGR> H DA#AEA E , <<./<= < R$ #R&S '9 203 09 '0 20,0/3

20,0/

?D#HBD

RG#DGB

>?#EAD

?D#?33

RD#AEE

RR#AHR

GG#ARA

EH#HAA

DAA#GA

>68.<9

CALC#LA %O& OF A4O.$ A4L$

4eta ,5.5:/7

Alfa 9.5:/

Standard Coefficient of Sharpe "eviation determination ratio 2SR3 6.<99 ,5.=:<9 ,/.<:<

reynor Ratio 2 R 97:.9

1ensen Ratio 21R3 ,=7.:9

&ote 2% have taAen RF benchmarA 7.: the fiBed deposit of banA interestC the days duration is = year3

%C%C% Prudential 4lended Plan , Option 4 D !ro?th: "A $ S@P C&' &%F 0 D-jun-AH EA>?#H H 3-(ctEB3A#A AH H D-3e/AB D-CunAB 3-(ctAB D-3e/A? D-CunA? D-(ctER?D#H H ERBE#E H 3HBR#B GD3?#E GER?#A H HAB>#R R$ #R&S &A. 2'3 DA#ADR ? EH#R>?G DA#EDE DE#R>GHG DA#3RG E -A#3DER? EA#HA3 DH#RAARG DD#DEB R 3#>B3?EG D?#RB3GR DD#GDG DD#>DH E#H>AE33 3#HEAE3> E#ERBHB> DG#RE>3 ? 3EE#B>B DA#B>> B DA#>?? D E#>3E3GR D#?B3HBD D#?>GD?H A#AR?RG R GEA#3?E > EHE#>3R R D#RDREDR DB>#HR> G B?H#3GH 3#B>3GA E 3#D>3E> E >#AEEE 3#DDADG > H#E?GEE H B#BH?BA H DE#3REA GR#>?HH E E3#DBB? D -A#>>BG3 3B#DH>E R 3B#HD?H R R#RBR3D D B3#E3H? >#D>3H H >#3D>H > ?#E?AG D ->#33RE ?#>ABD R ?#HEEH 3 R$ #R&S '9 203 09 '0 20,0/3

20,0/

BB#R?A

BR#DR>

HE#>H>

BR#HGE

BA#R3B

HB#H>> G3#3ER

A? D-3e/A> E-CunA>

H > H3D?#E H G?3R#B G#>R>GH DE#EHG 3 -DA#>B3? DE#HAB G 75.79866 99.8>8</ E#AH?E3? 3#?DDD33

R > E3#RRG> E D3#??EH DD>#ADR R G#E3EEE G >5.=9<> < D>#D?>> -EE#3GRE 9/=.6>> = H

B#H>EH E B#3RDB 3 >#AGHH E , >6.8>5 /

GA#>HE

BG#?3A

O AL

/77>.66 8

:9:.55

CALC#LA %O& OF A4O.$ A4L$ 4eta ,5.5/97 Alfa 9.>9> Standard Coefficient of Sharpe "eviation determination ratio 2SR3 <.>=<> ,5.95>7> ,5.<75 reynor Ratio 2 R ,8>:.>> 1ensen Ratio 21R3 ,959.>9

&ote 2% have taAen RF benchmarA 7.: the fiBed deposit of banA interestC the days duration is = year3

Findin+s and Su++estions* CompanyFs &ame %C%C% 4eta Alfa Standard "eviation <.>=<> Coeffici ent of determi nation ,5.95>7> Sharp e ratio 2SR3 ,5.<75 reynor 1ensen Ratio Ratio 2 R 21R3 ,8>:.>> ,959.>9

9.>9>

Prudential 4lended plan option,4, !ro?th -"FC hi+h interest fund, !ro?th 4irla 4ond indeB fund, !ro?th Sundaram 4&P Paribas 4ond Saver,!ro?th Alpha @ 4eta*

5.5/97

, 5.5:/7 5.55<7 9 , 5.<695 7

9.5:/

6.<99

,5.=:<9

,/.<:<

97:.9

,=7.:9

/.>=/ /7.:55 6

6.8557 /.596<<

5.9957< < , 5.<78/7 6

,/.::7 6>.87: :

,/>:8./ , //=.<<< /

/5./5 ,98.7=89

The a/o.e ta/le sho-s that !irla !ond inde1 fund-Gro-th is comparati.ely more .olatile -ith a /eta of A#AA?RE, though compared to the mar,et all the funds are safer to in.est# $nd also the alpha .alues of all the funds are positi.e -hich sho-s that the funds are gi.ing returns justifying the ris, ta,en# 4undaram !'6 6ari/as !ond 4a.er-Gro-th is sho-ing an alpha of DR#HAA> -hich suggests that the fund is -ell di.ersified and 5uite efficient in reducing the impact of mar,et ris,# Co,efficient of "etermination* 2ere all .alues are not in positi.e form of the co-efficient of determination of all the fund of the de/t# SharpeFs Ratio @ reynorFs Ratio 4harp 0n the a/o.e ta/le, the Treynor=s ratio for 2D3% 2igh 0nterest 3und F Gro-th fund the highest here almost all funds are in negati.e form and same are in positi.e form# 0t suggests that 2D3% 2igh 0nterest 3und F Gro-th fund fund is gi.ing highest returns o.er the ris, free returns after ta,ing the mar,et ris, in to account# (n the other hand 4undaram !'6 6ari/as !ond 4a.er-Gro-th 3und is gi.ing the lo-est returns# )ith more .olatility the 4harpe=s ratio here all fund are in negati.e or 2D3% 2igh 0nterest 3und F Gro-th fund gi.ing highest, suggesting that after ta,ing the total ris, in to consideration the fund is gi.ing good return o.er and a/o.e the ris, free returns#

!alance 3und

Sundaram 4&P Paribas 4alance Fund,!ro?th* 0n.estment 0nformation 3und Type 0n.estment 6lan $sset 4ize <s cr" Min# 0n.estment *ast Di.idend !onus $sset $llocation K" +5uity De/t Mutual 3unds Money Mar,et %ashO%all (pen-+nded Gro-th 3>#R3 jul-3D-EAA>" <s H,AAA '#$# '#$# 6ercentage held BH#EG A#AA '#$# A#AA 3G#?3

Asset Allocation(% ) Sundaram BNP 0aribas Balance fund1 Growth

$5%

Equity Debt Mutual Funds Money Market Cash/Call

0%

65%

4%2+M+ 6+<3(<M$'%+ : Dmonth -A#ABD?D 3 months A#AGRHGR B months A#EH>D3G Dyear -A#DDEGH

-"FC 4alanced Fund D !ro?th 0n.estment 0nformation 3und Type 0n.estment Type $sset 4ize <s cr" Min #0n.estment *ast Di.idend !onus $sset $llocation K" +5uity De/t Money Mar,et %ash O %all (pen-+nded Gro-th DAG#>H May-3A-EAA>" <s#H,AAA '#$ '#$ 6ercentage held BR#AA E3#RE H#?> D#3A

Asset Allocation (% ) H F! Balanced Fund 1 Growth

8% 2 % Equity Debt Cash / Call 7 %

4%2+M+ 6+<3(<M$'%+ D month A#ABA?D? 3 months A#D3G?3H B months A#A3R3G D yrsW -A#AG33>

%C%C% Prudential 4alanced D !ro?th 0n.estment 0nformation 3und Type 0n.estment 6lan $sset 4ize <s cr" Min# 0n.estment *ast Di.idend !onus $sset $llocation K" +5uity De/t Mutual 3und Money Mar,et %ash O %all (pen-+nded Gro-th 33B#R? May-3A-EAA>" <s#HAAA '#$ '#$ 6ercentage held ?A#?H ED#DB '#$ A#AA >#AR

Asset Allocation (% ) of %!%!% Prudential Balanced 1 Growth

8% 2 % Equity Debt Cash / Call 7 %

4%2+M+ 6+<3(<M$'%+ D month A#A>G3E 3 months A#DRD?BH B months A#D3GHD> D yrsW -A#ADAG3

4irla 4alance Fund D !ro?th 0n.estment 0nformation 3und Type 0n.estment 6lan $sset 4ize <s cr" Min# 0n.estment *ast Di.idend !onus $sset $llocation K" +5uity De/t Money Mar,et %ash O %all

(pen-+nded Gro-th DAB#3> May-3A-EAA>" <s#HAAA '#$ '#$ 6ercentage held B?#3R D?#?3 A#AA DG#>>

Asset Allocation (%) of Birla Balance (G)

Cash / Call 5% Debt 8% Equity 67%

4%2+M+ 6+<3(<M$'%+ D month A#AG?G3 3 months A#AB3AD> B months A#DA?GB3 D yrsW -A#ABGAD

!$*$'%+D 3:'D-('+ M('T2 %(M6$<04(' (3 <+T:<'" %ompany 'ame and fund !irla !alance 3und - Gro-th $/solute return A#AG?G3 Mean return A#AADB>G A#DBK" A#AAEDGG A#EDK" A#AAERG? A#ERK" 4tandard De.iation A#AA?H? A#AA>B>D A#ADA3E 7ariance A#AAAAH?3AG A#AAAA?H3HHR A#AAADABHAE

2D3% !alanced A#ABA?D? 3und - Gro-th 0%0%0 6rudential !alanced Gro-th 4undaram !'6 6ari/as !alance fund-Gro-th A#A>G3E

A#ADBG?H -A#ABD?D -A#AAEDD A#AAAE?D

&N" '&N(H &F BA.AN!" F*N

0# 5 0# 0#05 ,"(*,NS 0 "0#05 "0# "0# 5 "0#2 NA4 7 0 $ 6 ! 22 25 28 2DFC 'alan.ed Fund " 3ro,th 'irla 'alan.e Fund " 3ro,th %undara& '() )aribas 'alan.ed Fund " 3ro,th -C-C- )rudential 'alan.ed " 3ro,th

F%&"%&!S*

3rom the a/o.e ta/le -e can see that 0%0%0 6<:D+'T0$* /alanced gro-th fund is gi.ing the ma1imum a/solute one month return A#A>G3E"/ut is also highest in terms of .olatility 7ariance=A#AAADABHAE" -hile 4undaram !'6 6ari/as !alance fund-Gro-th is ha.ing the lo-est .olatility .ariance=A#AAAE?D" so far as return in concerned# 4:GG+4T0('4: a" 3or in.estor -ith high ris, appetite: Go for the 0%0%0 /alanced gro-th fund# /" 3or in.estor -ith moderate ris, appetite: Go !irla !alance 3und F Gro-th# c" 3or in.estor -ith lo- ris, appetite: Go 4undaram !'6 6ari/as !alance fundGro-th# !$*$'%+D 3:'D-40X M('T24 %(M6$<04(' (3 <+T:<'"

%ompany 'ame and fund !irla !alance 3und - Gro-th

$/solute return A#DA?GB3

Mean return A#AAABB A#AAA3DE>G3 A#AAA>G>3ER

4tandard De.iation A#AD3EB? A#AD3RG? A#ADB?H3

7ariance A#AAAD?B A#AAADRG A#AAAE>A

2D3% !alanced A#A3R3G 3und - Gro-th 0%0%0 6rudential !alanced Gro-th c 4undaram !'6 6ari/as /alance fund-Gro-th A#D3GHD>

A#EH>D3G

A#AADGAG

A#ADHH>G

A#AAAEG3

S%/ '&N(H BA.AN!" F*N

0#25 0#2 0# 5 ,"(*,NS 0# 0#05 0 "0#05 "0# "0# 5 "0#2 NA'irla 'alan.e Fund " 3ro,th 22 4$ 64 85 06 27 48 6! %undara& '() )aribas 'alan.ed Fund " 3ro,th -C-C- )rudential 'alan.ed " 3ro,th 2DFC 'alan.ed Fund " 3ro,th

F%&"%&!S*

3rom the a/o.e ta/le -e can see that 4undaram !'6 6ari/as /alance fund-Gro-th is gi.ing the highest a/solute return o.er B months A#EH>D3G" -hile it is highest in term of fluctuation of returns .ariance=A#AAAEG3"# !0<*$ /alanced fund is ha.ing the minimum fluctuation in return generated .ariance=A#AAAD?B"# "$%%E" &ON"' a"3or in.estor -ith high ris, appetite: Go for 0%0%0 prudential !$*$'%+D 3:'D /"3or in.estor -ith moderate ris, appetite: Go for !0<*$ !$*$'%+D fund c"3or in.estor -ith lo- ris, appetite: Go for !0<*$ !$*$'%+D fund#

Sundaram 4np Paribas 4alance fund* "A $ S@P C&' &%F 0 EA>?#H H EB3A#A H ER?D#H H ERBE#E H 3HBR#B R$ # R& 2'3 &A. R$ #R & 203 '9 09 '0 20,0/3 20,0/39

D-junAH 3-(ctAH D-3e/AB D-CunAB 3-(ctAB D-3e/A? D-CunA? D-(ctA? D-3e/A>

EA#>D ? EH#R>? G DE#R>G HG A#3DER ? EA#HA3 E3#HR DH E?#B? D E>#GB >B ER#BR RR 3E#>3 R 3G#HD >E GA#AH HE GD#RH D> D3#3E>A H D?#EREE H E#>>EGG B?H#3G H DB>#HR >G A#AR?R GR GEA#3? E> EHE#>3 RR DG#RE> 3? 3EE#B> BR E3#RRG >E D??#B3 BR ERR#AE D? >#3A>G BD D>#?AB B3 DDD#?D ED EB#DG? DR EH?#3A ?? EE#GDR R 3GB#3BD G EEG#H3D R B#3HAB EE DA#3DG >E GA#33AG DAB#3RHH DB#?B>RE

-A#RAEDD G#ARGR R >>#B??> G DB>#AB3 3 DR#?HB> R E#BHE3 D 3#HRDR BR D#>B3R R R#AB33 >B E#EGEG

G#3EHDD B DA#HBRG

?#A3G?H3

GD3?#E

DH#RAA RG 3#>B3? EG D?#RB3 GR G#>R>G H

DE#RAEEG

GER?#A H HAB>#R H H3D?#E H

H#DD3G3 E DB#AGA> D G#?3GRB B

3#G?GG?? >E#DGGR?

E>>#DG> R E3#DR3R R

B E-CunA> ss O AL G?3R#B DA#>B3 ? 75.798 66 3?#D3 D? -DD#G>RB DD>#AD RR >9.<7>6 8 /77>.6 68 D3E#AD DE /5:=.9 <9 DEG#>DR ? /969.>: 9 -D>#GB?

H#AE>B3E 3GD#A3DB

5.5555 8<

>/:.///:

CALC#LA %O& OF A4O.$ A4L$ 4eta 5.>5//> Alfa 5.7585 Standard "eviation 6.9><9 Coefficient of Sharpe determination ratio 2SR3 5.<7:7 >.88>6 reynor Ratio 2 R 66.>:>< 1ensen Ratio 21R3 /.:5=>

&ote 2% have taAen RF benchmarA 7.: the fiBed deposit of banA interestC the days duration is = year3

4irla 4alance Fund D !ro?th "A $ D-junAH 3-(ctAH S@P C&' &%F 0 EA>?#HH EB3A#AH R$ #R & 2'3 &A . D># AD EA# RB R$ #R &S 203 DB#3?R? R '9 09 '0 20,0/3 20,0/39

EH#R>?G

B?H#3G H

EB>#ER GEH#BB> ?H E

B#E??AE H

3R#GADA G

D-3e/AB D-CunAB 3-(ctAB D-3e/A? D-CunA? D-(ctA? D-3e/A> E-CunA> O A L

ER?D#HH ERBE#EH 3HBR#B GD3?#E GER?#AH HAB>#RH H3D?#EH G?3R#B

DE#R>GH E3# G A3 -A#3DER? EE# >G EA#HA3 EB# DG DH#RAAR E># G 3? 3#>B3?E ER# G HR D?#RB3G 33# R B3 G#>R>GH 3E# GH -DA#>B3? 3A# RD 75.7986 6

R#>?HRH G

DB>#HR >G A#AR?R -A#>EHAD GR DG#GG>3 GEA#3? G E> >#H3AR> EHE#>3 ? RR G#3AA3D DG#RE> 3? ? D3#BH3E 3EE#B> BR B E3#RRG -3#HA>?? >E DD>#AD -G#?GH?B RR :6./57/ /77>.6 68

R?#H3G DE>#E3G G? > A#B>AB G3 EA>#?H GG ?E#??? ?G A#EH>EA E ERB#E3G E D3H#BHA ?

A#EEB>D DA#RE?> G#3GHH? B D#H?D?? H#>AEGG 3#HHAHA D D3#BDDH DG#>G>H :6./57/

A#AHDGG D DDR#GDB E D>#>>GA 3 E#G?AG? 33#BB>3 G DE#BABA B D>H#E?3 > EEA#G?> B >=9.9:

D>#GRE DB#BDHE ?3 G D>B#GD DH DE#3DD G> EE#HEE EB EGH#EBA E D?#D>?H HD#HHBH 3

66<.<6 96 /969.97

CALC#LA %O& OF A4O.$ A4L$ 4eta 5.>8: Alfa ,5.57 Standard Coefficient of Sharpe "eviation determination ratio 2SR3 6.=6/: 5.7855/9 =.:=9> reynor Ratio 2 R 8:.75: 1ensen Ratio 21R3 5./=7:

&ote 2% have taAen RF benchmarA 7.: the fiBed deposit of banA interestC the days duration is = year3

-"FC 4alanced Fund D !ro?th "A $ S@P C&' &%F 0 D-jun-AH EA>?#H H 3-(ctEB3A#A AH H D-3e/ER?D#H AB H D-CunAB 3-(ctAB D-3e/A? D-CunA? D-(ctA? D-3e/A> E-CunA> O AL ERBE#E H 3HBR#B GD3?#E GER?#A H HAB>#R H H3D?#E H G?3R#B R$ #R& &A. 2'3 EA#H? B EG#GB G EB#AH ? -A#3DER? EA#HA3 DH#RAARG 3#>B3?EG D?#RB3GR G#>R>GH -DA#>B3? 3E#AR 3E#AA E 3G#RH ? 3>#DH > 3G#>G 3 DB#HA?BR -A#B?BRE EE#?3A?? EG#BE3A> -EH#H /57.<8>9 EB#GH > ER#RG G 3#A>GBDH EB#>DH3> R$ #R&S '9 203 09 '0 20,0/3 20,0/39

EH#R>?G DE#R>GHG

ER#RA?BR DE#EH3>H

B?H#3GH DB>#HR> G A#AR?RG R GEA#3?E > EHE#>3R R DG#RE>3 ? 3EE#B>B R E3#RRG> E DD>#ADR R /77>.66 8

>RG#G?A D DHA#DHB ? R#HDG>H E ?DR#ABG R E?E#HA3 R A#GH>EE H HDB#B>? R BAB#ERH R BHA#EH =6/7.85 9

???#EE3 E DHR#DDA B -A#RBH3R HGR#?RH ? EBE#G>? > -E#BDHGG GA>#3E3 R DEA#BDG R E??#AEG 3

DR#>AGR 3 E#DHDA> B -?#AD>DG DB#?DEB E B#GAGR3 E -DA#??R? DE#BE>A D DG#HEA3 E -3H#BAE> /6.69/= /

3RE#E3HE G#BE?D?E GR#EHG3H E?R#3DD> GD#AE3DB DDB#EADB DHR#GBBB EDA#>3RB DEB?#HH?

75.79866

9::/

9:95.:/>

CALC#LA %O& OF A4O.$ A4L$ 4eta /.==6> Alfa ,/.=97 Standard Coefficient of Sharpe "eviation determination ratio 2SR3 />.<=:/ 5.66>= 8.6:86 reynor Ratio 2 R >5.>78 1ensen Ratio 21R3 ,5.779

&ote 2% have taAen RF benchmarA 7.: the fiBed deposit of banA interestC the days duration is = year3

%C%C% Prudential 4alanced D !ro?th "A $ S@P C&' &%F 0 D-jun-AH EA>?#H H 3-(ctEB3A#A AH H D-3e/ER?D#H AB H D-CunERBE#E AB H 3-(ctAB D-3e/A? D-CunA? D-(ctA? D-3e/A> E-CunA> 3HBR#B GD3?#E GER?#A H HAB>#R H H3D?#E H G?3R#B R$ #R& &A. R$ #R&S '9 2'3 203 EA#3 ? EH#D B E>#E B E>#? 3D#G H 3H#> G 3B#G H GA#3 H GE#D H 3B#R H 09 '0 20,0/3 20,0/39

EH#R>?G DE#R>GHG -A#3DER?

B?H#3GH E3#HDGR? DE#3EDDG D#HHBR?D R#H>D>>E D3#RH>BB D#?AEAAR DA#BRRHR G#GBARB? -DE#33BR DB>#HR> G A#AR?RG R GEA#3?E > EHE#>3R R DG#RE>3 ? 3EE#B>B R E3#RRG> E DD>#ADR R HHE#RHG DHD#>DA B E#GEGDH R RD#>DEG H DRG#>GG 3 E#>RB>3 G DDG#G>D E DR#RAAE E DHE#DR> R BDD#AR3 DHR#R>G G -A#G>?E> DRB#GH? 3 EED#RHH R B#H?BAR 3 DRE#EAD R ED#>HD> E D3G#AEG 3

3H#>HD> ? -H3#D3>E D#HHBR? D R#H>D>> E D3#RH>B B D#?AEAA R DA#BRRH R G#GBARB ? -DE#33BR

DE>H#3HB E>E3#BBG E#GEGDHR RD#>DEGH DRG#>GG3 E#>RB>3G DDG#G>DE DR#RAAEE DHE#DR>R

EA#HA3 DH#RAARG 3#>B3?EG D?#RB3GR G#>R>GH -DA#>B3?

O AL

75.79866 >:.8:7=/

/77>.66 8

/96=.=9 =

/:8=.>: <

/9.==>6 7

8>6<.:<7

CALC#LA %O& OF A4O.$ A4L$

4eta 5.6/67

Alfa ,5.775<

Standard Coefficient of Sharpe "eviation determination ratio 2SR3 99.69/7 5.7:5>6 /.>/7

reynor Ratio 2 R 8:./=97

1ensen Ratio 21R3 ,/.957

&ote 2% have taAen Rf benchmarA 7.: the fiBed deposit of banA interestC the days duration is = year3

Findin+s and Su++estions* CompanyFs &ame %C%C% Prudential 4alanced D !ro?th 4eta Alfa Standar d "eviatio n 99.69/7 Coefficient of determinati on 5.7:5>6 Sharp e ratio 2SR3 reyno 1ensen r Ratio Ratio 2 R3 21R3 ,/.957

5.6/67

,5.775<

/.>/7 8:./=9 7

-"FC /.==6> 4alanced Fund D !ro?th 4irla 4alance Fund D !ro?th S#&"ARAM 4&P 5.>8:

,/.=97

/>.<=:/

5.66>=

8.6:86

>5.>78

,5.779

,5.57

6.=6/:

5.7855/9

=.:=9>

8:.75:

5./=7:

5.>5// >

5.7585

6.9><9

5.<7:7

>.88>6

66.>:> <

/.:5=>

PAR%4AS 4ALA&C$" F#&"*

Alpha @ 4eta The a/o.e ta/le sho-s that 2D3% !alanced 3und - Gro-th fund is comparati.ely more .olatile -ith a /eta of D#33>B, though compared to the mar,et all the funds are safer to in.est and they are ha.ing less .olatility also# $nd also the alpha .alues of all the funds are negati.e e1pected 4undaram !'6 6ari/as !alance 3und -hich sho-s that the funds are gi.ing returns not justifying the ris, ta,en# 4undaram !'6 6ari/as !alance 3und is sho-ing an alpha of A#RAGA -hich suggests that the fund is -ell di.ersified and 5uite efficient in reducing the impact of mar,et ris,# Co,efficient of "etermination $ll company is ha.ing positi.e co- efficient of determination# SharpeFs Ratio @ reynorFs Ratio 4harp 0n the a/o.e ta/le, the Treynor=s ratio for 4undaram !'6 6ari/as !alance 3und is the highest follo-ed /y 2D3% and then !0<*$# 0t suggests that 4undaram !'6 6ari/as !alance 3und is gi.ing highest returns o.er the ris, free returns after ta,ing the mar,et ris, in to account# (n the other hand 0%0%0 6rudential !alanced - Gro-th fund is gi.ing the lo-est returns# The 4harpe=s ratio of 4undaram !'6 6ari/as !alance 3und is highest suggesting that after ta,ing the total ris, in to consideration the fund is gi.ing good return o.er and a/o.e the ris, free returns# 3rom the a/o.e it can /e suggested that 4undaram !'6 6ari/as !alance 3und can /e ruled out of in.estment decision alternati.e# $mong the other three funds# %2$6T+< 7

3indings , conclusion , suggestions

Su++estion +iven to the Company

The study has tried pro.e that mere returns of a fund or the past performance is not good enough to ma,e a sound decision on in.estment for the future# There is a need to understand .arious a.aila/le tools of comparati.e analysis and their significance in ma,ing an in.estment decision# There tools help in analyzing the consistency of performance of the funds o.er a period of time# Thus -hile gi.ing a suggestion to a potential in.estor on in.estments# The ad.isor can Ta,e the /eta ratios of .arious funds and suggest -ither the fund is .olatile or not :se correlations and suggest -hether the /enchmar, ta,en /y the company for judging the performance is good enough or not# :se treynor=s ratio and tell -ither the fund of the company is gi.ing returns justifying the mar,et ris, to -hich all the similar funds are su/ject to#

Mutual fund: $n 0ntroduction $ mutual fund is a form of collecti.e in.estment# 0t is a pool of money collected from .arious in.estors -hich is in.ested according to the stated in.estment o/jecti.e# The fund manager is the person -ho in.ests the money in different types of securities according to the predetermined o/jecti.es# The portfolio of a mutual fund is decided ta,ing into consideration this in.estment o/jecti.e# Mutual fund in.estors are li,e shareholders and they o-n the fund# The income earned through these in.estments and the capital appreciation realized /y the scheme is shared /y its unit holders in proportion to the num/er of units o-ned /y them# The .alue of the in.estments can go up or do-n, changing the .alue of the in.estors holding# Mutual funds are one of the /est in.estments e.er created /ecause they are .ery cost efficient and .ery easy to in.est in#

4iblio+raphy and references

4ooAs: T4ecurity $nalysis and portfolio ManagementU /y Donald 3ischer I <onald Cordan, Bth edition pu/lished /y prentice 2all DRRH#

Web sites* ---#amfi #com

 )--# Money control#com ---#historical nifty#yahoofinancial#com ---#sundaram !'6 6ari/as# in ---#share,an#com 1ournal* $uthor /y ,annan, I 'edunchez 0ndian T$ comparati.e study on performance of pri.ate mutual fundsU+conomic panorama issue date, BAODAOEAAH 4isodiya, $mith 4ingh, TMutual funds performance-%omparati.e analysisU 0%3$0, DHO?OEAAG#