Professional Documents
Culture Documents
The project has been carried out at KOTAK MAHINDRA ASSET MANAGEMENT
with the title Comparative Analysis Of Various Mutual Fund Schemes with respect
to Kotak Mahindra on the basis of Alpha, Beta, Mean, Standard Deviation, Sharpes
Ratio.
KOTAK MAHINDRA ASSET MANAGEMENT is known for an stimulating
environment with high levels of motivation, empowerment and recognition. The
company encourages an open and informal culture that values integrity, commitment,
teamwork and excellence in customer service. The company adopts a policy of strong
learning and development initiatives, which promotes day-to-day learning as well as
decision making.
They believes strength in their people, so it endeavor to surpass their expectation and
give them the best possible work environment and benefits that match the best in the
industry .The company attributes the success of the company to its people are key facts of
the company and it is their contribution that has enabled the company to achieve its
current statue. Since they deserve best, their best efforts have been to provide them with
the best environment culture and development opportunities possible.
Now a days every Mutual Fund Company is trying to survive in the present competitive
market. There are private, public and many foreign Mutual Fund companies and KOTAK
MAHINDRA ASSET MANAGEMENT is one of the best among the private and foreign
mutual fund companies.
CHAPTER - 2
Introduction
INTRODUCTION
2
A mutual fund is a trust which pools the savings of a number of investor who
share a common financial goal. The money thus collected is invested by the fund
manager in different types of securities depending upon the objectives of scheme. These
could range from shares to debentures to money market instrument. The income earned in
these investments and the capital appreciation realized by the scheme is shared by its unit
holders in proportion to the number of units owned by them.
There are a lot of avenues available today in the financial market for an investor
with an investable surplus. He can invest in bank deposits, corporate debentures, and
bonds where there is low risk but low return. He may invest in stock of companies where
the risk is high and the returns are proportionately high. The recent trend in stock market
has shown that an average retail investor always lost with periodic bearish trends. People
began opting for portfolio managers with expertise in stock markets who would invest on
your behalf. Thus we had wealth management services provided by many institutions.
However they proved too costly for small investor. These investors have found a good
shelter with mutual funds.
Like most developed and developing countries the mutual fund cult has been
catching on in India. The reason for this interesting occurrence is:
1. Mutual fund makes it easy and less costly for investors to satisfy their needs for
capital growth, income and/or income preservation.
2. Mutual fund brings the benefits of diversification and money management to the
individual investor, providing an opportunity for financial success that was once
available only to a select few select few.
Research Objective:
1. To understand the performance of Various Mutual Funds using various tools.
2. To measure and compare the performance of selected mutual funds scheme of
different mutual fund companies and other asset management companies.
3. To give a brief idea about the benefits available from the Mutual Fund investment.
4. To give an idea of types of schemes available.
5. Explore the recent developments in the mutual fund of India.
6. To give an ideas about the regulations of Mutual Funds
Scope of Project:
3
The schemes were categorized and selected on evaluating their performance and
relative risk. The scope of the project was mainly concentrated on the different category
of mutual fund such as equity schemes
Research Methodology
The data required for the study is mainly collected from the secondary data
source.
Secondary data source include:
Sample profile:
The sample required for the study has been selected through random sampling method
from the available list of mutual fund schemes in the company. Broadly the sample of
nine mutual fund schemes related to equity funds.
The study has taken broad categories of:Equity Shares
Findings and Analysis
The collection of this information is based on the secondary probe. The information has
been collected through various books and internet. An attempt has been made to evaluate
the performance of the selected mutual fund schemes. Performance of mutual fund
schemes has been evaluated by using the following performance measures
1. Alpha:I came to know how particulars Mutual Fund schemes performed related to what
it was expected to do.
2. Beta:By comparing mutual funds on the basis of beta we come to know how volatile a
particular mutual fund is related to stock market is.
3. Mean:The simple mathematical average of a set of two or more numbers. The mean for
a given set of numbers can be computed in more than one way, including the arithmetic
mean method, which uses the sum of the numbers in the series, and the geometric mean
method.
4. Standard Deviation:The standard deviation of fund measures the risk by measuring the degree to
which the fund fluctuates in relation to its mean return.
5. Sharpes Ratio:A higher Sharpes ratio is better as it represents a higher return generated per unit
of risk.
6. N.A.V:NAV shows how much return an investor will get after liquidation of his mutual
fund.
7. CAPM:A model that describes the relationship between risk and expected return and that
is used in the pricing of risky securities.
1. The need of study arises for learning the variables available that distinguishing the
mutual fund of a company.
2. To know the risk and return associated with mutual fund.
3. To choose the best company for mutual investment for large cap, mid & small
cap, diversified equity funds and others.
Limitations:
1. To get an insight in the process of risk and return and deployment of funds by
fund manager is difficult.
2. The project is difficult to analyze each and every scheme of mutual funds to
create the awareness about risk and return.
3. The risk and return of mutual fund schemes can change according to the market
conditions.
CHAPTER - 3
Industry profile
It has been a little over 20 years since the asset management industry was opened up to
the entry of new players. The objective was to expand the business by widening and
depending the market for asset management products. The inclusion of asset management
products in the basket of traditional investment avenues such as cash-in-hand, corporate
and fixed deposits (FDs) saving accounts, stocks and gold was accepted to occur over
time.
Financial intermediaries become fund sponsors when they create and operate mutual
funds. Such funds are a type of Investment Company that pools money from the investing
public and collectively invests this money in stocks, bonds and money market
instruments. A mutual fund provides individual investors with a convenient form of
investing, professional management, broad diversification and liquidity.
The purpose of this tutorial is to show the investing public how to use a simple eightpoint, fund evaluation technique to select and monitor a mutual fund. But first we are
going to step back and put the mutual fund business into historical perspective, review
the operational workings of a fund and look at some of the broad issues related to today's
mutual fund industry.
The Indian mutual fund industry has come a long way since the inception of UTI
in 1963.
According to AMFI the evolution of industry can be broadly divided into four phases,
which mark its transaction from the period when UTI ruled the roost to a period of
competition and increased awareness among investors.
First Phase (1964-87)
UTI remained the only Mutual Fund player in the country till 1987. UTI started
its operation in July 1964 with a view to encouraging saving and investments and
participation in the income, profits and gains accruing to the corporation from the
acquisition, holdings, management and disposal of securities. UTI witnessed a slow and
steady growth over the 1970s and 1980s and by the end of 1988 it had a AUM of
Rs.67bn. It still constitutes to be the largest player in the domestic mutual fund industry
with AMU of RS.23500 cr. as on March 31st, 2005.
Second phase (1987-93)
Public sector mutual fund set up by public sector banks, Life Insurance
Corporation of India entered the market in 1987. The first known UTI fund was the SBI
mutual fund established in June 1987, followed by Canara Bank Mutual Fund in India in
December 1987, Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund
(Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC set up its
mutual fund in June 1989 while GIC had set up its mutual fund in December 1990.
During this period the total asset of the industry grew to about Rs.610bn with the total
No. of schemes increasing to about 167 by the end of 1994.
Third Phase (1993-2003)
This phase marked the entry of private sector funds. The phase also signaled the
intensification of the competition. Both domestic and foreign players entered the market,
offering a wide variety of schemes to investors. Kothari Pioneer Mutual fund was the first
private sector fund. To be established to be established in association with the foreign
funds. The opening up of the market to private players saw the international players like
Morgan Stanley, Jar Dine Fleming, JP Morgan, George Soros and Capital International
entering the market.
Fourth Phase (Since Feb 2003)
In February 2003 the Unit Trust of India Act 1963 was repealed and UTI was
bifurcated into two segments entities: Specified undertaking of the Unit Trust of India,
which is still under the government of India, and the UTI Mutual Fund Limited. This was
done in the wake of the severe payment crisis that the UTI suffered on an account of its
assured returns schemes of US 64 was the first scheme launched by UTI with the
significant equity exposure and the returns of which are not linked to the market.
Current Scenario
9
The Indian Mutual fund industry has witnessed considerable growth since its
inception in 1963. The assets under management (AUM) have surged to Rs.4,173 billion
in Mar-09 from just Rs.250 million in Mar-65. In a span of 10 years (from 1999 to 2009),
the industry has registered a CAGR of 22.3%, albeit encompassing some shortfalls in
AUM due to business cycles.
The impressive growth in the Indian Mutual fund industry in recent years can
largely be attributed to various factors such as rising household savings, comprehensive
regulatory framework, favorable tax policies and introduction of several new products,
investor education campaign and role of distributors.
In the last few years, households income levels have grown significantly, leading
to commensurate increase in households savings. Household financial savings (at current
prices) registered growth rate of around 17.4% on an average during the period FY04FY08 as against 11.8% on an average during the period FY99-FY03. The considerable
rise in households financial savings, point towards the huge market potential of the
Mutual fund industry in India.
Besides, SEBI has introduced various regulatory measures in order to protect the
interest of small investors that augurs well for the long term growth of the industry. The
tax benefits allowed on mutual fund schemes (for example investment made in Equity
Linked Saving Scheme (ELSS) is qualified for tax deductions under section 80C of the
Income Tax Act) also have helped mutual funds to evolve as the preferred form of
investment among the salaried income earners.
Besides, the Indian Mutual fund industry that started with traditional products like
equity fund, debt fund and balanced fund has significantly expanded its product portfolio.
Today, the industry has introduced an array of products such as liquid/money market
funds, sector-specific funds, index funds, gilt funds, capital protection oriented schemes,
special category funds, insurance linked funds, exchange traded funds, etc.
SWOT Analysis:10
STRENGTHS:-
WEAKNESS:-
Large numbers of potential customers are base. Poor participation of retail investors.
Government support by way of tax
concession for MF investors.
Lack of focus.
Under performance
THREATS:-
11
CHAPTER - 4
Company profile
Company Profile:12
Our Mission
13
Environmental Sustainability
Management Team:
Director
Director
Mr. Sukant S. Kelkar
Director
Mr. Chengalath Jayaram
Director
Mr. Bipin R. Shah,
Director
Mr. Gaurang Shah
Director
Mr. Pranab Kumar Datta
Director
Mr. Nalin Shah
Managing Directors
Mr. R. Krishnan
Compliance Officer
Vice President
Harish Krishnan
Vice President
Associate
CHAPTER - 5
Theoretical
background
15
16
Organization of Mutual Fund:There are many entities involved and the diagram below illustrates the
organizational set up of a mutual fund.
17
return expectations. The mutual fund schemes can be classified according to both their
investment objective (like income, growth, tax saving) as well as the number of units (if
these are unlimited then the fund is an open ended one while if there are limited units
then the fund is close-ended).
Types of funds
LIQUIDITY
OPEN-ENDED SCHEMES
CLOSE-ENDED SCHEMES
INVESTMENT
GROWTH SCHEMES
INCOME SCHEMES
BALANCED SCHEMES
MONEY-MARKET SCHEMES
OTHERS
TAX-SAVING SCHEME
SPECIAL SCHEMES
GROWTH FUNDS
It is MF schemes that offer the advantage of capital appreciation f the underling
investment such fund invest in growth oriented securities that are capable of appreciating
in he long run. The risk attached with such funds is relatively higher.
INCOME FUNDS
This scheme is customized to suit the needs of investors who are particular about
regular returns. The scheme offers maximum current income where by the income earned
by the units is distributed periodically there are two types of schemes, one that earns the
target constant income at relatively low risk while the other offers maximum possible
income.
BALANCED FUNDS
Such schemes have a mix of debt and equity in their portfolio of investments. The
portfolio is often shifted between debt and equity depending upon the prevailing market
conditions.
20
SECTOR FUNDS
Such fund invests in specific sectors of the economy. The specialized sectors may
include real state, infrastructure, oil and gas etc., offshore investments, commodities like
gold and silver.
INDEX FUNDS
Index funds generally bus shares in all the companies composing the BSESENSEX or NSE-NIFTY or other broad stock market indices. They are not suitable for
investors who must conserve their principal or maximize current income.
GILT FUNDS
These funds seek to generate returns through investments in govt. securities. Such
funds invest only in central and state govt. securities and REPO/ reverse REPO securities.
A portion of the corpus may be invested in call money markets to meet liquidity
requirements. Such funds carry very less risk. There prices are influenced only by
moment in interest rates.
Diversification:
Mutual funds invest in a broad range of securities. This limits investment risk by
reducing the effect of a possible decline in the value of any one security. Mutual fund
units holders can benefit from diversification techniques usually available only to
investors wealthy enough to buy significant positions in a wide variety of securities.
Professional Management:
Most mutual fund pay top light professionals to manage their investments. These
managers decide what securities the fund will buy and sell.
Regulatory Oversight:
Mutual funds are subject to many government regulations that protect investor
from fraud.
Liquidity:
It is easy to get your money out of a mutual fund. Write a cheque, make a call and
youve got the cash.
Convenience:
You can usually buy mutual fund shares by mail, phone or over the Internet.
Low Cost:
Mutual fund expenses are often no more than 1.5% of your investment. Expenses
for index funds are less than that, because index funds are not actively managed. Instead
they automatically buy stock in companies that are listed on a specific index.
Transparency:
Mutual fund schemes are said to be transparent because they show the clear
allocation of funds to Investors.
Flexibility:
Mutual funds are flexible because they change time to time and also if investor
wants his money back for the maturity of fund he/she can easily redeem it.
Drawbacks of Mutual Funds:Mutual funds have their drawbacks and may not be for everyone:
22
1. No Guarantees:
No investment is risk free. If the entire stock market declines in value, the value
of mutual fund shares will go down as well, no matter how balanced the portfolio.
Investors encounter fewer risks when they invest in mutual funds than when they buy and
sell stocks on their own.
However, anyone who invests through a mutual fund runs the risk of losing money.
2. Fees and commissions:
All funds charge administrative fees to cover their day-to-day expenses. Some
funds also charge sales commission or loads to compensate brokers, financials
consultants, or financial planners. Even if you dont use a broker or other financial
advisor, you will pay a sales commission if you buy shares in a load fund.
3. Taxes:
During a typical year, most actively managed mutual funds sell anywhere from 20
to 70percent of the securities in their portfolios. If your fund makes a profit on its sales,
you will pay taxes on the income you receive, even if u reinvests the money you made.
4. Management Risk:
When you invest in a mutual fund, you depend on the funds manager to make the
right decisions regarding the funds portfolio. If the manager does not perform as well as
u had hoped, you might not make as much money on your investment as you expected.
Of course if you invest in Index Funds, you forego management risk, because these funds
do not employ managers.
This gives rise to the concept of net asset value per unit, which is the value,
represented by the ownership of one unit in the fund. It is calculated simply by dividing
the net asset value of the fund by the number of units. However, most people refer
loosely to the NAV per unit as NAV, ignoring the per unit. We also abide by the same
convention.
Calculation of NAV
The most important part of the calculation is the valuation of the asset owned by
the fund. Once it is calculated, the NAV is simply the net value of the assets divided by
the number of units outstanding. The detailed methodology for the calculation of the asset
value is given below.
Asset value is equal to Sum of market value of shares/debentures
+Liquid assets/cash held, if any
+Dividends/interest accrued
Amount due to unpaid assets expenses accrued but not paid
How Long To Keep Investment To Get Maximum Returns:Get desired returns technically open ended funds you can withdraw your investments
even within a week, but to positive time frame is required are:
Funds
Time Period
Equity Funds
Balanced Funds
MIPs
Income Funds
Liquid Funds
3 Years (plus)
18 Months to 3 Years
1 Year (plus)
6 Months to 1 Year
Few days to 6 Months
What returns can I expect if I keep my money for suggested time frames:Funds
Sector funds
Balanced Funds
MIPs
Income Funds
Liquid Funds
Returns
22% to 25% p.a
15% to 18% p.a
12% to 15%p.a
10% to 12%p.a
7% to 9%p.a
The previous mentioned returns in the table are indicative and not assured. All
investments in MUTUAL FUNDS are securities and are subject to market risk and the
NAVs of the schemes may go up and down depending upon the factors and forces
affecting the securities market including the fluctuations in the internal rates. The past
performance of the mutual funds is not indicative of future performance.
24
R
E
Sector Funds
T
U
R
N
Equity funds
Balanced funds
Income funds
Liquid funds
RISKS
The above graph shows the Risk and Returns generated by different funds. Liquid
funds are less risky and also generate less Return whereas sector funds are more risky but
generate more Returns by the example of above two funds is clear that Risk and Return
are directly proportional to each other. Other funds like equity funds, balanced funds and
equity funds are also fives the same percentage of Returns as the Risk involved.
Mutual Fund Investing Strategies:
1) Systematic Investment Plan (SIPs) :
These are best suited for young Peoples who have started their careers and needs to build
their wealth. Sips entail the investors to invest a fixed sum of money at regular intervals
in a mutual fund scheme the investor as chosen, an investor opting for a sip in xyz mutual
fund scheme will need to invest certain sum of money every month/quarter/half yearly in
the scheme. By investing through sip, one ends up buying more units when the price is
low and fewer units when the price is high. However, over a period of time these market
fluctuations are generally averaged. And the average cost of the investment is often
reduced. It is far better to invest small amount of money regularly, rather than save up to
make a large investment this is because while saving is in the lump sum, it may not earn
much interest.
2) Systematic withdrawal plan (SWPs):
25
These plans are suited for people nearing retirement, In these plans, an investor invest in
a mutual fund scheme and is allowed to withdraw a fixed sum of money it regular
intervals to take care of its expenses.
3) Systematic Transfer Plan (STPs):
They allow investor to transfer on a periodic basis 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. Such redemption or investment will be at the applicable NAV.
This service allows the investor to manage is investments actively to achieve his objects.
Many funds do not even charge any transaction fees for his service-an added advantage
for the active investor.
Association of mutual funds in India:
With the increase in mutual fund players in India, a need for mutual fund
association in India was generated to function as a non-profit organization. Association of
mutual fund in India (AMFI) was incorporated on 22nd august 1995.
AMFI is an apex body of all asset management companies (AMC), which has
been registered with SEBI. Till date all the AMCs are that have launched mutual fund
schemes are its members. It functions under the supervision and guidelines of its Board
of Directors.
Association of mutual funds India has brought down the Indian Mutual Fund
Industry to a professional and healthy market with ethical lines enhancing and
maintaining standards. It follows the principle of both protecting and promoting the
interests of mutual funds as well as their unit holder.
The Association of Mutual funds of India works with 30 registered AMCs of the country.
It has certain defined objectives, which juxtaposes the guideline of its Board of Directors.
The objectives are as follows:
This mutual fund association of India maintaining high professional and ethical
standards gins all area of operation of the industry.
It also recommends and promotes the top class business practices and code of
conduct which is followed by members and related people engaged in the
activities of mutual fund and asset management. The agencies that are by any
means connected or involved In the field of capital markets and financial services
also involved in this code of conduct of the association.
AMFI interacts with SEBI and works according to SEBIs guideline in the mutual
fund industry.
Association of Mutual Fund of India do represent the Government of India, the
Reserve Bank of India and other related bodies on matters relating to the mutual
fund Industry.
It develops a team of well qualified and trained agent distributors .It implement
the programmer of training and certification for all intermediaries and other
engaged in the mutual fund industry.
AMFI undertakes all India awareness programmed for investors in order to
promote proper understanding of the concepts and working of mutual funds.
At last but not the least association of mutual fund of India also disseminate
Informations on Mutual Fund Industry and undertakes studies and research either
directly or in association with other bodies.
Indian companies was also very similar. They quickly realized that the AMC business is a
business, which makes money in the long term and requires deep-pocketed support in the
intermediate years.
Some have sold out to foreign owned companies, same have merged with other
and there is general restructuring going on. The foreign owned companies have deep
pockets and come in here with the expectation of a long haul. They can be credited with
introducing many new practices such as new product innovation, sharp improvement in
services standards and disclosure, usage of technology, broker education and support etc.
In fact they forced the Industry to upgrade itself and service level of organizations like
UTI have improved dramatically in the last few years in response to the competition
provided by these.
Emerging Issues in Mutual Funds
Rating of Mutual Funds Schemes
Changes in Mutual Funds due to the Advent of Net
New norms of NPA Classification
Influence of Technology
Product Innovation
Indices for Mutual Funds
SEBI Mutual Fund Regulations
The regulation governing the functioning of mutual funds in India were
introduced by SEBI in Dec 1996. The objective of these regulations was to bring in
existence the regulatory norms for the formation, operation and management of mutual
funds in India. The regulation also laid down the broad guidelines or investment
valuation, investment restriction, advertising code and code of conduct for mutual funds
and AMCs.
28
1. Mutual fund shall be constituted in the form of a trust under the provision of
Indian Registrations Act and provisions laid down by SEBI.
2. A trustee should be person of integrity, ability, and should not have been found
guilty or being convicted of any economic offence or violation of securities law.
At least 50%of the trustees shall be Independent trustees.
3. The trustees and the AMC with SEBIs prior approval shall enter into an
investment management agreement.
4. The trustees shall ensure the AMC has the necessary infrastructure and personnel.
5. The trustees shall ensure that AMC is monitoring security transaction with
brokers.
6. The trustees shall ensure that the EMC has been managing the scheme
independently.
7. The trustees should fulfill all its duties in order to protect the interest of the
investors.
1. It should have a sound track record, reputation and fairness in transaction. The
sponsor or trustee should appoint an AMC with SEBIs approval.
2. The appointment of the AMC can be terminated by majority of trustees or by 75%
of unit holders.
3. The Director of AMCs should have adequate professional experience.
4. At least 50% of the director of AMC should not be associated with the sponsor or
its subsidiaries of the trustees.
5. The chairman of the AMC should not be trustee of any other mutual fund.
6. The AMC shall have a minimum net worth of Rs.10cr.
7. The AMC shall not act as an AMC for any other mutual funds.
1. The mutual fund shall appoint a custodian to carry out the custodian service for
the scheme of the fund.
2. The agreement with custodian shall be entered into with prior approval of
trustees.
29
1. All the scheme to be launched by the AMC should be approved by the trustees
and are to be filled with SEBI.
2. The offer Document should contain adequate disclosures to enable the investors to
make informed decisions.
3. Advertisement of scheme should be in conformance with SEBIs code.
4. The listing of close ended schemes is mandatory and it should be listed on a
recognized stock exchange within 6 months of its subscriptions.
5. Unit of close ended schemes can be opened for redemption at a fixed interval.
6. The AMC shall specify in the offer document the minimum subscription to be
raised under the scheme. The AMC may repurchase, reissue the unit of close
ended schemes.
7. The unit of close ended schemes can be converted into open ended schemes. Any
scheme on mutual fund shall not be opened for subscription after 45 days.
8. The mutual fund and AMC shall be liable to refund the application money to the
applicants if minimum subscription is not received.
HOW TO INVEST IN MUTUAL FUND:
The best Approach is to invest a fixed amount at specific intervals, say every
month. By investing a fixed sum each month, you buy fewer units when the price is
higher and more units when the price is low, bringing down your average cost per unit.
This is called rupee cost averaging and is a disciplined investment strategy followed by
investors all over the world. You can also avail the systematic investment plan facility
offered by many open end funds.
31
32
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
CHAPTER - 6
Data analysis
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
73.
74.
75.
76.
77.
78.
79.
80.
81.
82.
83.
84.
85.
It describes the relationship between the stocks returns and the index
returns. The beta value may be interpreted in the following manner, a 1% change in
Nifty index would cause a 1.024% (beta) change in the particular fund. It is the slope of
characteristics regression line.
86.
87.
It signifies that a fund with a beta of more than 1 willrise more than the
market and also fall more than the market. Thus, if one likes to beat the market on the
upside, it is best to invest in a high-beta fund. But one must keep in mind that such a fund
will also fall more than the market on the way down. So, over an entire cycle, returns
may not be much higher than the market.
88.
89.
Similarly, a low beta fund will rise less than the market on the way up and
lose less on the way up and lose less on the way down. When safety of investment is
important, a fund with beta of less than one is a better option. Such a fund may not gain
more than the market on the upside but it will protect returns better when market falls.
90.
91.
92. x
93.
xy ()( y)
n 94.
2
95.
n x 2 ( x )
96. =
97. Where,
98.
99. n= Number of days
100.
101.
x= Returns of the index
102.
103.
y= Returns of the fund
104.
105.
106.
107.
108.
109.
110.
111.
112.
113.
114.
115. Alpha:
116.
117. It indicates that the stock return is independent of the market return. If the
portfolio is well diversified, the alpha value would turn out to be zero. The intercept of
characteristic regression line is alpha.
118.
119. Alpha shows whether the particular fund has produced returns justifying
the risks it is taking by comparing its actual return to the one predicted by beta.
120.
121. Alpha can be seen a measure of a fund managers performance. This is
what the fund has earned over and above (or under) what it was expected to earn. Thus
this is the value added (or subtracted) by the fund managers investment decisions. This
can be clearly seen from the fact that index fund always have or should have, if they track
their index perfectly, an alpha of zero.
122.
123. Thus, a passive fund has an alpha of zero and an active funds alpha is a
measure of what the fund managers activity has contributed to the funds returns. On the
whole the positive alpha implies that a fund has performed better than expected, given its
level of risk. So, higher the alpha better the returns.
124.
125.
126.
= yx
127.
128.
129.
130. Where,
131.
132. y = Mean value of returns of the fund
133.
134. x = Mean value of returns of the index
135.
136. = Beta value of the fund
137.
138.
139.
140.
141.
142.
143.
144.
145.
146.
147.
148.
149. Correlation Co-efficient:
150.
151. It measures the nature and the extent of relationship between the stock market
index returns and a funds return in a particular period.
152.
153.
y
154.
155.
156.
x
157.
158.
159.
160. Co-Efficient
y Of Determination:
161.
of correlation of co-efficient is the co-efficient of determination. It
162. The square
2
gives the percentage
variation in the stocks return explained by the variation in the
2
x
market return.
n
163.
164. n xy( x)
r2
165.
r =
166.
167. Sharpes Ratio:
168.
169. Sharp ratio is similar to tenors ration the difference being, instead of beta we take
standard deviation. As standard deviation represents the total risk experienced by the
fund, it reflects the returns generated by undertaking all possible risks. A higher Sharpes
ratio is better as it represents a higher return generated per unit of risk.
170.
171.
172. S= RpRf
?p
173.
174.
175.
176.
177.
178. Where,
179. Rp = the expected return on the investors portfolio
180. Rf = the risk free rate of return
181. ?p = the portfolios standard deviation
182.
183.
184.
185.
186.
187.
188. Mean:
189.
190. The simple mathematical average of a set of two or more numbers. The
mean for a given set of numbers can be computed in more than one way, including the
arithmetic mean method, which uses the sum of the numbers in the series, and the
geometric mean method. However, all of the primary methods for computing a simple
average of a normal number series produce the same approximate result most of the time.
191.
192.
193. Mean = Sum Of X Values / N (Number Of Values)
194.
195. Standard Deviation:
196.
197. The degree that a single value in a group of values varies from the mean (average)
of the distribution. Standard deviation is a statistical measure that uses past performance
of an investment or portfolio to determine the potential range of future performance and
excess the probability of that performance. Standard deviation can be calculated for an
individual security or for the entire portfolio.
198.
199.
200.
( XM )
201.
S=
202.
n1
203.
204.
205.
206.
207.
208.
209.
210.
211.
212.
213.
214.
215.
216.
217.
218.
219.
220.
221.
222. The mutual fund schemes that are analyzed are divided into categories. The
schemes on the basis of these categories are:223.
Large Cap Funds
224.
a) Kotak 50Kotak 50 is the regular equity scheme launched by Kotak Mahindra. It
is the large cap fund category scheme in its equity sector.
225.
b) Kotak Classic Equity-Kotak Classic Equity Scheme is the regular equity scheme
launched by Kotak Mahindra. It is the large cap fund category scheme in its
equity sector.
226.
Mid Cap &Small Cap Funds
227.
a) Kotak Mid-Cap- Kotak Mid-Cap Scheme is the regular equity scheme launched
by Kotak Mahindra. It is the mid & small cap fund category scheme in its equity
sector.
228.
b) Kotak Equity Arbitrage- Kotak Equity Arbitrage is the regular equity scheme
launched by Kotak Mahindra. It is the mid & small cap fund category scheme in
its equity sector.
229.
c) Kotak Emerging Equity Scheme- Kotak Emerging Equity Scheme is the regular
equity scheme launched by Kotak Mahindra. It is the mid & small cap fund
category scheme in its equity sector.
230.
Diversified Funds
231.
a) Kotak Opportunities Fund- Kotak Opportunities Equity Scheme is the regular
equity scheme launched by Kotak Mahindra. It is the Diversified Fund category
scheme in its equity sector.
232.
b) Kotak Select Focus Fund- Kotak Select Focus Equity Scheme is the regular
equity scheme launched by Kotak Mahindra. It is the Diversified Fund category
scheme in its equity sector.
233.
234.
Others235.
a) Kotak Tax Saver-Kotak Tax Saver Equity Scheme is the regular equity scheme
launched by Kotak Mahindra. It is the Equity Linked Saving Scheme (ELSS)
category in its equity sector.
236.
b) Kotak Balance-Kotak Balance Equity Scheme is the regular equity scheme
launched by Kotak Mahindra. It is the Balanced Scheme category in its equity
sector.
237.
1. LARGE CAP FUNDS
238.
239. KOTAK 50
240.
241. As on August 31, 2015
242.
243. INVESTMENT INFOMATION
244.
245. Fund Type
246. Open-Ended
247. Investment Plan
248. Growth
249. Risk Grade
250. Average
251. Return Grade
252. Above Average
253. NAV
254. Rs.33.582 as on Sept 30, 2015
255. Net Assets*
256. Rs.709.52cr as on Jun 30, 2015
257.
258. *Quarterly Average
259.
260. ASSET ALLOCATION (%)
261. PERCENTAGE HELD
262. Equity
263. 98.31
264. Debt
265. 2.23
266. Others
267. -0.53
268.
269.
270.
ASSET ALLOCATION
equity
debt
others
271.
272.
273.
274. SCHEME PERFORMANCE
275.
276. 1 month 277. 3
278. 6
months
Months
282. 3.9
283. -0.1
284. -3.5
279.
year
285.
1
14.2
280. 3
years
286. 18.2
*
281. 5
years
287. 9.0*
288.
289. *returns over 1 year are annualized
290.
291.
292.
293.
KOTAK CLASSIC EQUITY SCHEME
294.
295. As on August 31, 2015
296.
297. INVESTMENT INFOMATION
298.
299. Fund Type
300. Open-Ended
301. Investment Plan
302. Equity Scheme
303. Risk Grade
304. Low
305. Return Grade
306. Average
307. NAV
308. Rs.34.339as on Sept 30, 2015
310.
315.
317.
319.
321.
PERCENTAGE HELD
98.03%
2.27%
-0.30%
ASSET ALLOCATION
Equity
Debt
Cash
323.
324.
325.
326. SCHEME PERFORMANCE
327.
328. 1 month 329. 3
330. 6
months
Months
334. 3.4
335. -2.2
336. -6.7
340.
341. *returns over 1 year are annualized
342.
343.
344.
345.
346.
347.
348.
331.
year
337.
1
8.3
332. 3
years
338. 8.3*
333. 5
years
339. 7.5*
349.
350.
351.
352.
353.
354.
355.
356.
357.
358.
359.
360.
361.
362.
363.
364.
Fund
379.
KOTAK 50
390.
KOTAK
391.
CLASSIC
392.
EQUITY
403.
404.
405.
406.
407.
408.
Fund
Comparisons:Snapshot
365. 367.
Rat Category
366.
Ing
368.
Launch
380. 381.
*** EQ-LC
382.
Dec 22,
383.
1998
393. 394.
EQ-LC
395.
Jan 01,
396.
2013
369.
Expense
370.
Ratio
371.
(%)
384.
2.61%
385.
(Mar 31,
386.
2015)
397.
3.10%
398.
(Mar 31,
399.
2015)
372.
1-Year
373.
Return
374.
(%)
387.
16.5%
375.
1-Year
376.
Rank
377.
Net
Asset
378.
(Cr)
388.
12
389.
Rs.1203
400.
12.4%
401.
55
402.
Rs.106
410.
Minimum
411.
Investment
412.
(Rs)
413.
Exit Load
414.
(Period)
415.
Expense
416.
Ratio
417.
Portfolio
418.
Manager
419.
(Tenure)
420.
KOTAK 50
421.
***
422.
Rs.5000
428.
KOTAK
429.
CLASSIC
430.
EQUITY
437.
438.
439.
440.
441.
442.
443.
444.
445.
446.
447.
448.
449.
450.
451.
452.
453.
454.
455.
456.
Scheme
431.
-
432.
Rs.5000
465.
KOTAK
466.
50
475.
KOTAK
476.
CLASSIC
477.
EQUITY
487.
423.
1%within
424.
365days
433.
-
425.
2.61%
434.
3.10%
426.
Harish
427.
Krishnan
435.
Harish
436.
Krishnan
NAV Details
457.
NAV
467.
Rs.
33.582
478.
Rs.
479.
34.339
458.
As On
459.
52-Week
460.
High
468.
469.
Sept 30, Rs.182.55
2015
480.
481.
Sept 30, Rs.21.45
2015
461.
As On
470.
Mar 02,
471.
2015
482.
Mar 02,
483.
2015
462.
52-Week
463.
Low
472.
Rs.147.98
484.
Rs.17.76
464.
As On
473.
Oct 16,
474.
2014
485.
Oct 16,
486.
2014
488.
489.
490.
491.
492.
Fund
Portfolio
493.
Rati
494.
ng
495.
Capitali
496.
zation
497.
Turn
498.
Over
499.
Credit
500.
Quality
501.
Interest
502.
Rate
503.
sensitivity
518.
KOTAK 50
519.
***
522.
37%
523.
-
524.
528.
KOTAK
529.
CLASSIC
530.
EQUITY
540.
541.
542.
543.
544.
545.
Fund
531.
-
520.
Large
521.
Cap
532.
Large
533.
Cap
534.
76%
535.
-
536.
557.
KOTAK 5O
558.
566.
KOTAK
567.
CLASSIC
504.
Aver
505.
age
506.
Cred
507.
it
508.
Qua
509.
lity
525.
-
510.
Aver
511.
age
512.
Matu
513.
rity
514.
(Yrs)
515.
Net
516.
Assets
517.
(Cr)
526.
-
527.
Rs.1203
537.
-
538.
-
539.
Rs.106
Risk Status
546.
Ratings
550.
Mean
551.
Standard
552.
Deviation
553.
Sharpe
554.
Ratio
555.
Beta
556.
Alpha
559.
***
547.
Fund
548.
Risk
549.
Grade
560.
Average
561.
17.43%
562.
15.25%
563.
0.70%
564.
1.08%
565.
4.99%
569.
-
570.
Low
571.
14.78%
572.
12.16%
573.
0.66%
574.
0.83%
575.
3.66%
568.
EQUITY
576. (As on Sep 30, 2015)
577.
578.
579. INTERPRETATION
580.
581. Beta:582.
Beta of Kotak 50 is the highest, this indicates that the risk profile of Kotak
50 equity fund is more. In above equity schemes have shown volatility as compared to
SENSEX. But Kotak classic equity has shown less volatility as compared to Kotak 50
equity scheme
583.
584. Alpha:585.
The highest return is given by Kotak 50 equity fund. As the alpha is
positive in both the schemes that means the schemes has performed better than expected
but among the equity schemes Kotak classic equity has given less returns.
586.
587. Mean:588.
The highest mean is given by Kotak 50 equity fund. Kotak classic equity
has also performed better but less compared to Kotak 50
589.
590. Standard deviation:591.
Kotak 50 equity fund has shown more deviation in this movement.
Therefore this fund has shown more volatility in its performance.
592.
593. Sharpes ratio:594.
The Sharpes ratio of Kotak 50 equity fund is highest suggesting that after
taking total risk into consideration the fund is giving good returns over and above the risk
free returns.
595.
596. NAV:597.
In this table as on Sept 30, 2015 Kotak Classic Equity Fund is having
highest NAV as compared to Kotak 50 Equity Fund. So in case of liquidation this fund
will give maximum returns.
598.
599.
600.
601.
602.
603.
604.
605.
606.
607. MID & SMALL CAP FUNDS
608.
609.
KOTAK MID-CAP
610.
611. As on August 31, 2015
612.
613. INVESTMENT INFOMATION
615. Fund Type
617. Investment Plan
619. Risk Grade
621. Return Grade
623. NAV
625. Net Assets*
627.
628. *Quarterly Average
629.
630. ASSET ALLOCATION (%)
632. Equity
634. Debt
636. Other
638.
639.
614.
616.
618.
620.
622.
624.
626.
Open-Ended
Equity
Above Average
Average
Rs.52.345as on Sept 30, 2015
Rs.338.11cr as on June 30, 2015
631.
633.
635.
637.
PERCENTAGE HELD
97.00%
2.03%
0.97%
640.
PERCENTAGE HELD
Equity
Debt
Other
641.
642. SCHEME PERFORMANCE
643.
644. 1
645. 3
646. 6
month
months
Months
650. 3.3
651. 652. -0.8
656.
657.
658.
659.
660.
661.
662.
663.
665.
667.
669.
671.
673.
675.
677.
678.
679.
647.
year
653.
1
20.6
648. 3
years
654. 24.4
*
649. 5
years
655. 12.
5*
664.
666.
668.
670.
672.
674.
676.
Open-Ended
Equity Scheme
Below Average
Above Average
Rs.21.3526as on Sept 30, 2015
Rs.2,229.35cr as on Jun-30-2015
680.
681.
683.
685.
687.
689.
682.
684.
686.
688.
PERCENTAGE HELD
68.01%
29.00%
3.00%
PERCENTAGE HELD
Equity
Debt
Others
690.
691.
692.
693. SCHEME PERFORMANCE
694.
695. 1
696. 3
697. 6
698. 1
699. 3
month
months
Months
year
years
701. 0.4
702. 1.6
703. 3.5
704. 7.9 705. 8.8*
707.
708. *returns over 1 year are annualized
709.
710.
711.
KOTAK EMERGING EQUITY SCHEME
712.
713. As on August 31, 2015
714.
715. INVESTMENT INFOMATION
716.
717. Fund Type
718. Open-Ended
719. Investment Plan
720. Equity Scheme
721. Risk Grade
722. Above Average
700. 5
years
706. 8.7*
724.
726.
728.
Below Average
Rs.26.028as on Sept 30, 2015
Rs.646.87cr as on Jun 30, 2015
733.
735.
737.
739.
PERCENTAGE HELD
92.92%
7.57%
-0.48%
PERCENTAGE HELD
Equity
Debt
Others
741.
742.
743. SCHEME PERFORMANCE
744.
745. 1
746. 3
747. 6
month
months
months
751. 3.9
752. 1.0
753. 1.6
757.
758.
759.
760.
761.
762.
763.
748.
year
754.
1
24.7
749. 3
years
755. 28.2
*
750. 5
years
756. 14.
0*
764.
765.
766.
767.
768.
769.
770.
771.
772.
773.
774.
775.
776.
777.
778.
779.
780.
781.
782.
Fund
Comparisons:Snapshot
783. 785.
Ra Category
t
784.
Ing
786.
Launc
h
797.
KOTAK
798.
MID-CAP
799. 800.
*** SC&MC
801.
Jan 28,
802.
2005
809.
KOTAK
810.
EQUITY
811.
ARBITRAGE
812.
FUND
823.
KOTAK
824.
EMERGING
825.
EQUITY
813. 814.
*** SC&MC
815.
Sep 29,
816.
2005
826. 827.
*** SC&MC
828.
Mar 12,
829.
2007
787.
Expense
788.
Ratio
789.
(%)
803.
2.88%
804.
(Mar 31,
805.
2015)
817.
0.93%
818.
(Mar 31,
819.
2015)
790.
1-Year
791.
Return
792.
(%)
806.
22.95%
793.
1-Year
794.
Rank
795.
Net
Asset
796.
(Cr)
807.
51
808.
Rs.350
820.
7.9%
821.
25
822.
Rs.4693
830.
2.5%
831.
(Mar 31,
832.
2015)
833.
26.8%
834.
31
835.
Rs.755
SCHEME
836.
837.
838.
839.
840.
841.
Fund
853.
KOTAK
854.
MID-CAP
862.
KOTAK
863.
EQUITY
864.
ARBITRAGE
865.
FUND
873.
KOTAK
874.
EMERGING
875.
EQUITY
SCHEME
883.
884.
885.
886.
887.
888.
889.
890.
891.
Scheme
855.
***
843.
Minimum
844.
Investment
845.
(Rs)
856.
Rs.5000
866.
***
867.
Rs.5000
876.
***
877.
Rs.5000
846.
Exit Load
847.
(Period)
848.
Expense
849.
Ratio
857.
1%within
858.
365days
868.
0.5%within
869.
90 days
859.
2.88%
878.
1%within
879.
365 days
880.
2.5%
870.
0.93%
850.
Portfolio
851.
Manager
852.
(Tenure)
860.
Pankaj
861.
Tibrewal
871.
Deepak
872.
Gupta
881.
Pankaj
882.
Tibrewal
NAV Details
892.
NAV
893.
As On
894.
52-Week
895.
896.
As On
897.
52-Week
898.
899.
As On
High
900.
KOTAK
901.
MID-CAP
910.
KOTAK
911.
EQUITY
912.
ARBITRAGE
921.
KOTAK
922.
EMERGING
923.
EQUITY SCHEME
932.
933.
934.
935.
936.
937.
938.
Fund
Rat
i
939.
ng
964.
KOTAK
965.
MID-CAP
902.
Rs.
52.345
Low
903.
Sept
30,
2015
913.
914.
Rs.
Sept
21.3526 30,
2015
904.
Rs.32.15
924.
Rs.
26.028
926.
Rs.27.87
925.
Sept
30,
2015
915.
Rs.21.45
905.
Aug 05,
906.
2015
916.
Mar 02,
917.
2015
907.
Rs.25.38
927.
Aug 05,
928.
2015
929.
Rs.20.65
918.
Rs.17.76
908.
Oct 16,
909.
2014
919.
Oct 16,
920.
2014
930.
Oct 16,
931.
2014
Portfolio
940.
Capital
i
941.
zation
966. 967.
*** Mid &
968.
Small
969.
Cap
942.
Turn
943.
Over
944.
Credit
945.
Qualit
y
946.
Interes
t
947.
Rate
948.
Sensiti
949.
vity
970.
40%
971.
-
972.
-
950.
Aver
951.
age
952.
Cred
953.
it
954.
Qua
955.
lity
973.
-
956.
Aver
957.
age
958.
Mat
u
959.
rity
960.
(Yrs
)
974.
-
961.
Net
962.
Assets
963.
(Cr)
975.
Rs.350
976.
KOTAK
977.
EQUITY
978.
ARBITRAG
E
989.
KOTAK
990.
EMERGING
991.
EQUITY
992.
SCHEME
1003.
1004.
1005.
1006.
1007.
1008.
1009.
1010.
1011.
1012.
1013.
1014.
Fund
979. 980.
*** Mid &
981.
Small
982.
Cap
983.
190
%
984.
-
985.
-
986.
-
987.
-
988.
Rs.469
3
993. 994.
*** Mid &
995.
Small
996.
Cap
997.
83%
998.
-
999.
-
1000.
-
1001. 1002.
Rs.755
1015.
Rating
s
1016.
Fund
1017.
Risk
1018.
Grade
1031.
KOTAK
1032.
MID-CAP
1040.
KOTAK
1041.
EQUITY
1042.
ARBITRAG
E
1033.
***
1034. A 1035.
bove
23.46
Average %
1043.
***
1044.
1046.
Below
8.41%
1045.
Average
Risk Status
1019.
Mean
1020.
(%)
1021.
Standard
1022.
Deviatio
n
1023.
(%)
1036.
18.55%
1024.
Sharp
e
1025.
Ratio
1026.
(%)
1037.
0.90%
1027.
Beta
1028.
(%)
1029.
Alpha
1030.
(%)
1038.
1.12
%
1039.
10.79
%
1047.
0.55%
1048.
3.07%
1049.
0.43
%
1050.
2.24%
1051.
1054.
1055.
1057.
KOTAK
***
Below
26.65
1052.
1056.
%
EMERGING
Average
1053.
EQUITY
SCHEME
1062. (As on Sep 30, 2015)
1058.
18.67%
1059.
1.07%
1060.
1.06
%
1061.
14.29
%
1063.
1064.
1065.
1066.
1067.
1068. INTERPRETATION
1069.
1070. Beta:1071.
1072.
Beta of Kotak Mid-Cap Equity Fund is highest among the different
schemes, which indicates the volatility in this specific scheme is more as compared to
other funds. But at the same time Kotak Emerging Equity Scheme has shown less risky
investment then Kotak Mid-Cap and Kotak Equity Arbitrage is the least risky fund
among others.
1073.
1074. Alpha:1075.
1076.
Alpha of Kotak Equity Arbitrage Fund is highest so highest return is given
by this fund. But the risk taken by this fund is less. Kotak Mid-Cap Fund has shown
volatility at par with SENSEX but among the equity this fund has given good return.
1077.
1078. Mean:1079.
1080.
The highest mean is given by Kotak Emerging Equity Fund. Kotak-Mid
Cap Equity has also performed better but less compared to by Kotak Emerging Equity
Fund
1081.
1082. Standard deviation:1083.
1084.
Kotak Emerging Equity Fund has shown more deviation as compared to
other schemes. Similarly Kotak Mid-Cap Equity Fund has also shown better deviation.
1085.
1086. Sharpes ratio:-
1087.
1088.
The Sharpes ratio of Kotak Equity Arbitrage Mid Cap Fund is highest
suggesting that after taking total risk into consideration the fund is giving good returns
over and above the risk free returns.
1089.
1090. NAV:1091.
1092.
In this table as on June 30, 2015 Kotak Mid-Cap Equity Fund is having
highest NAV as compared to other funds. So in case of liquidation this fund will give
maximum returns.
1093.
1094.
1095.
1096.
1097.
1098.
1099.
1100.
1101.
1102.
1103.
1104.
1105.
1106.
1107.
1108.
1109.
1110.
1111.
1112.
1113.
1114.
1115.
1116.
1117.
1118.
1119. DIVERSIFIED EQUITY FUNDS
1120.
1121. KOTAK OPPORTUNITIES
1122.
1123. As on August 31, 2015
1124.
1125.
1127.
1129.
1131.
1133.
1135.
1137.
INVESTMENT INFOMATION
Fund Type
Investment Plan
Risk Grade
Return Grade
NAV
Net Assets*
1139.
1140. *Quarterly Average
1141.
1142. ASSET ALLOCATION (%)
1144. Equity
1146. Debt
1148. Others
1150.
1126.
1128. Open-Ended
1130. Equity
1132. Average
1134. Average
1136. Rs.81.432as on Sept 30, 2015
1138.
Rs. 638.93cr as on
Jun 30, 2015
1143.
1145.
1147.
1149.
PERCENTAGE HELD
98.40%
0.00
1.60%
PERCENTAGE HELD
Equity
Debt
Others
1151.
1152.
1153.
1154.
1155.
1156. SCHEME PERFORMANCE
1157.
1158. 1
1159. 3
1160. 6
month
months
Months
1164. 2.7
1165. -1.0
1166. -3.5
1161. 1
year
1167. 15.7
1162. 3
1163. 5
years
years
1168. 20.0* 1169. 9.7*
1170.
1171. *returns over 1 year are annualized
1172.
1173.
1174.
1175. KOTAK SELECT FOCUS FUND
1176.
1177. As on August 31, 2015
1178.
1179. INVESTMENT INFOMATION
1181. Fund Type
1183. Investment Plan
1185. Risk Grade
1187. Return Grade
1189. NAV
1191. Net Assets*
1193.
1194. *Quarterly Average
1195.
1196. ASSET ALLOCATION (%)
1198. Equity
1200. Debt
1202. Cash
1204.
1180.
1182.
1184.
1186.
1188.
1190.
1192.
Open-Ended
Equity Scheme
Average
High
Rs.22.907as on Sept 30, 2015
3285cr as on Mar 31, 2015
1197.
1199.
1201.
1203.
PERCENTAGE HELD
93.24%
10.84%
-4.08%
PERCENTAGE HELD
Equity
Debt
Cash
1205.
1206.
1207.
1208. SCHEME PERFORMANCE
1209.
1210. 1
1211. 3
1212. 6
1213. 1
1214.
month
months
months
year
years
1216. 3.7
1217. 0.9
1218. -1.9 1219. 17.3
1220.
1222.
1223. *returns over 1 year are annualized
1224.
1225.
1226.
1227.
1228.
1229.
1230.
1231.
1232.
1233.
1234.
1235.
1236.
1237.
1238.
1239.
1240.
1241.
Comparisons:1242.
1243.
Snapshot
1244.
1245.
1246.
1247. 1249.
1250.
1251.
1254.
Fund
Ra Category Launc Expens 1-Year
t
h
e
1255.
1248.
1252.
Retur
Ing
Ratio
n
1253.
1256.
(%)
(%)
1261.
1264. 1265.
1267.
1269.
1272.
KOTAK
*** Diversifie Aug
2.5%
17.8%
1262.
d
25,
1270.
OPPORTUNITIE
1266.
1268.
(Mar
S
Equity
2004
31,
1263.
1271.
FUND
2015)
3
23.5
1215. 5
years
1221. 12.2
1257.
1Year
1258.
Rank
1259.
Net
Asset
1260.
(Cr)
1273.
50
1274.
Rs.126
5
1275.
KOTAK
1276.
SELECT
1277.
FOCUS FUND
1291.
1292.
1293.
1294.
1295.
1296.
Fund
1278. 1280.
*** Diversifie
1279. d
* 1281.
Equity
1282.
1285.
2.24%
1286.
(Mar
31,
1287.
2015)
1288.
19.1%
1289.
42
1290.
Rs.328
5
1308.
KOTAK
1309.
OPPORTUNITIES
1310.
FUND
1318.
1321.
1323.
KOTAK
***
5000
1319.
1322.
SELECT
*
1320.
FOCUS FUND
1329.
1330.
1331.
1332.
1333.
1334.
1335.
1336.
Scheme
NAV
As On
1343.
KOTAK
1344.
OPPORTUNITIES
1345.
1283.
Aug
20,
1284.
2009
1346.
Rs.
81.432
1347.
Sept
30,
2015
1301.
Exit Load
1302.
(Period)
1303.
Expense
1304.
Ratio
1313.
2% within
1314.
365days
1315.
2.5%
1324.
1%within
1325.
365 days
1326.
2.24%
1305.
Portfolio
1306.
Manager
1307.
(Tenure)
1316.
Harsha
1317.
Upadhaya
1327.
Harsha
1328.
Upadhaya
NAV Details
1337.
52-Week
1338.
High
1348.
Rs.87.76
1339.
As On
1349.
Aug06,
1350.
2015
1340.
52-Week
1341.
Low
1351.
Rs. 69.54
1342.
As On
1352.
Oct 16,
1353.
2014
FUND
1354.
1356.
1357.
KOTAKSELECT
Rs.
Sept
1355.
22.907 30,
FOCUS FUND
2015
1364.
1365.
1366.
Portfolio
1367.
1368.
1369.
1370. 1372.
1374.
Fund
Rat Capital Tur
i
i
n
1371. 1373.
1375.
Ng zation Ove
r
1395.
KOTAK
1396.
OPPORTUNITIE
S
1397.
FUND
1408.
KOTAK
SELECT
1409.
FOCUS FUND
1420.
1421.
1422.
1423.
1376.
Credit
1377.
Qualit
y
1359.
Aug 06,
1360.
2015
1378.
Interest
1379.
Rate
1380.
sensitivit
y
1398. 1399.
*** Divers1400.
ified
1401.
Equity
1402. 1403.
35% -
1404.
-
1410.
***
1411.
*
1414. 1415.
80% -
1416.
-
1412.
Diversi
1413.
fied
Equity
Risk Status
1424.
1358.
Rs.20.83
1361.
Rs.16.51
1381.
Ave
r
1382.
age
1383.
Cre
d
1384.
it
1385.
Qua
1386.
lity
1405.
-
1387.
Aver
1388.
age
1389.
Mat
u
1390.
rity
1391.
(Yrs
)
1362.
Oct 16,
1363.
2014
1392.
Net
1393.
Assets
1394.
(Cr)
1406. 1407.
Rs.126
5
1425.
Fund
1426.
Rating
s
1437.
KOTAK
1438.
OPPORTUNITIE
S
1439.
FUND
1447.
KOTAK
1448.
SELECT
1449.
FOCUS FUND
1440.
***
1458.
1459.
1450.
***
1451.
*
1427.
Fund
1428.
Risk
1429.
Grade
1441.
Average
1430.
Mean
1431.
Standard
1432.
Deviatio
n
1433.
Sharp
e
1434.
Ratio
1435.
Beta
1436.
Alph
a
1442.
19.09
%
1443.
14.09%
1444.
0.88%
1445.
0.97
%
1446.
7.22%
1452.
1453.
Average 21.88
%
1454.
14.86%
1455.
1.02%
1456.
1.02
%
1457.
9.77%
1460.
1461.
1462.
1463.
1464.
1465.
1466.
1467. INTERPRETATION
1468.
1469. Beta:1470.
Beta of Kotak Select Focus Equity Fund is highest among the different
schemes, which indicates the volatility in this specific scheme is more as compared to
other funds.
1471.
1472. Alpha:1473.
Alpha of Kotak Select Focus Equity Fund is highest so highest return is
given by this fund. But the risk taken by this fund is less.
1474.
1475. Mean:-
1476.
The highest mean is given by Kotak Select Focus Equity Fund. Kotak
opportunity equity fund has also performed better but less compared to by Kotak Select
Focus Equity Fund.
1477.
1478. Standard deviation:1479.
Kotak Select Focus Equity Fund has shown more deviation as compared
to other schemes. Similarly Kotak opportunity equity fund has also shown better
deviation.
1480.
1481. Sharpes ratio:1482.
The Sharpes ratio of Kotak Select Focus Equity Fund is highest
suggesting that after taking total risk into consideration the fund is giving good returns
over and above the risk free returns.
1483.
1484. NAV:1485.
In this table as on Sept 30, 2015, Kotak opportunity equity fund is having
highest NAV as compared to other funds. So in case of liquidation this fund will give
maximum returns.
1486.
1487.
1488.
1489.
1490.
1491.
1492.
1493.
1494.
1495.
1496.
1497.
OTHERS
1498.
1499. KOTAK TAX SAVER
1500.
1501. As on August 31, 2015
1502.
1503. INVESTMENT INFORMATION
1504.
1505. Fund Type
1506. Open-Ended
1507. Investment Plan
1508. Equity Scheme
1509. Risk Grade
1510. High
1511. Return Grade
1512. Average
1513. NAV
1514. Rs.30.599as on Sept 30, 2015
1521.
1523.
1525.
1527.
PERCENTAGE HELD
97.35%
2.83%
-0.18%
PERCENTAGE HELD
Equity
Debt
Cash
1529.
1530.
1531.
1532.
1533.
1534. SCHEME PERFORMANCE
1535.
1536. 1
1537. 3
1538. 6
month
months
Months
1542. 3.5
1543. -1.2 1544. -4.6
1548.
1549. *returns over 1 year are annualized
1550.
1551.
1552. KOTAK BALANCE
1553.
1539. 1
year
1545. 18.2
1540. 3
years
1546. 17.6
*
1541. 5
years
1547. 8.3*
1557.
1559.
1561.
1563.
1565.
1567.
1569.
Open-Ended
Equity Scheme
Average
Below Average
Rs.18.407as on Sept 30, 2015
Rs.44.61cr as on Jun 30, 2015
1574.
1576.
1578.
1580.
PERCENTAGE HELD
68.60%
31.30%
0.10%
PERCENTAGE HELD
Equity
Debt
Others
1582.
1583.
1584.
1585. SCHEME PERFORMANCE
1586.
1587. 1
1588. 3
1589. 6
month
months
Months
1593. 3.0
1594. -0.6
1595. -3.4
1599.
1590. 1
year
1596. -
1591. 3
years
1597. -
1592. 5
years
1598. -
1641. 1642.
*** ELSS
1653. 1654.
Balanced
1628.
Expense
1629.
Ratio
1630.
(%)
1643.
1645.
Nov 23, 2.66%
1644.
1646.
2005
(Mar 31,
1647.
2015)
1655.
1657.
Oct 01, 2.51%
1656.
1658.
2014
(Mar 31,
1659.
2015)
1631.
1-Year
1632.
Return
1633.
(%)
1648.
20.1%
1634.
1-Year
1635.
Rank
1636.
Net
Asset
1637.
(Cr)
1649.
15
1650.
Rs.492
1660.
-
1661.
-
1662.
Rs.257
1666.
1667.
1668.
Fund
1680.
KOTAK
1681.
TAX
1682.
SAVER
1689.
KOTAK
1690.
BALANCE
1669.
Ratin
g
1683.
***
1691.
-
1670.
Minimum
1671.
Investment
1672.
(Rs)
1684.
Rs.500
1673.
Exit Load
1674.
(Period)
1675.
Expense
1676.
Ratio
1685.
0%
1686.
2.66%
1692.
Rs.1000
s
1693.
1%within
1694.
365days
1695.
2.51%
1698.
1699.
1700.
1701.
1702.
1703.
1704.
1705.
1706.
1707.
1708.
1709.
1710.
1711.
1712.
1713.
1714.
1715.
Scheme
1716.
NAV
1717.
As On
1724.
KOTAK
1725.
1727.
Rs.
30.599
1728.
Sept
30,
1677.
Portfolio
1678.
Manager
1679.
(Tenure)
1687.
Harsha
1688.
Upadhaya
1696.
Pankaj
1697.
Tibrewal &
Abhishek
Bisen
NAV Details
1718.
52-Week
1719.
High
1729.
Rs.32.84
1720.
As On
1730.
Aug 07,
1731.
1721.
52-Week
1722.
Low
1732.
Rs.25.68
1723.
As On
1733.
Oct 16,
1734.
TAX
1726.
SAVER
1735.
KOTAK
1736.
BALANCE
1747.
1748.
1749.
1750.
1751.
1752.
Fund
1778.
KOTAK
1779.
TAX
1780.
SAVER
1789.
KOTAK
1790.
BALANCE
1800.
1801.
1802.
1803.
1804.
2015
1737.
Rs.
1738.
18.407
1739.
Sept
30,
1740.
2015
2015
1741.
Rs.19.19
1742.
Mar 03,
1743.
2015
2014
1744.
Rs.17.46
1745.
Sep 29,
1746.
2015
Portfolio
1753.
Rat
i
1754.
ng
1755.
Capital
i
1756.
zation
1757.
Turn
1758.
Over
1759.
Credit
1760.
Qualit
y
1761.
Interest
1762.
Rate
1763.
sensitivit
y
1781. 1782.
*** ELSS
1783. 1784.
37% -
1785.
-
1791. 1792.
Diversi1793.
fied
1794. 1795.
121
%
1796.
-
Risk Status
1764.
Aver
1765.
age
1766.
Cre
d
1767.
it
1768.
Qua
1769.
lity
1786.
-
1770.
Aver
1771.
age
1772.
Mat
u
1773.
rity
1774.
(Yrs)
1775.
Net
1776.
Assets
1777.
(Cr)
1787. 1788.
Rs.49
2
1805.
Fund
1806.
Rating
s
1817.
KOTAK
1818.
TAX
1819.
SAVER
1827.
KOTAK
1828.
BALANCE
1820.
***
1807.
Fund
1808.
Risk
1809.
Grade
1821.
Average
1829.
-
1836.
1810.
Mean
1811.
Standard
1812.
Deviatio
n
1813.
Sharpe
1814.
Ratio
1815.
Beta
1816.
Alpha
1822.
17.18
1823.
16.29
1824.
0.64
1825.
1.10
1826.
4.60
1830.
1831.
Average 12.25
1832.
9.31
1833.
0.59
1834.
0.81
1835.
2.19
1837.
INTERPRETATION
1839.
1840. Beta:1841.
Beta of Kotak Tax Saver Equity Fund is highest among the different
schemes, which indicates the volatility in this specific scheme is more as compared to
other funds.
1842.
1843. Alpha:1844.
Alpha of Kotak Tax Saver Equity Fund is highest so highest return is
given by this fund. But the risk taken by this fund is less.
1845.
1846. Mean:1847.
The highest mean is given by Kotak Tax Saver Equity Fund. Kotak
Balance equity fund has also performed better but less compared to by Kotak Tax Saver
Equity Fund.
1848.
1849. Standard deviation:1850.
Kotak Tax Saver Equity Fund has shown more deviation as compared to
other schemes.
1851.
1852. Sharpes ratio:1838.
1853.
The Sharpes ratio of Kotak Tax Saver Equity Fund is highest suggesting
that after taking total risk into consideration the fund is giving good returns over and
above the risk free returns.
1854.
1855.
1856. NAV:1857.
In this table as on Sept 30, 2015 Kotak Tax Saver fund is having highest
NAV as compared to other funds. So in case of liquidation this fund will give maximum
returns.
1858.
1859.
1860.
1861.
1862.
1863.
1864.
1865.
1866.
1867.
1868.
1869.
1870.
1871.
1872.
1873.
1874.
1875.
1876.
1877.
1878.
1879.
1880.
1881.
1882.
1883.
1884.
1885.
1886.
1887.
1888.
1889.
1890.
CHAPTER - 7
Findings, suggestions
and conclusion
1891.
1892.
1893.
1894.
1895.
1896.
1897.
1898.
1899.
1900.
1901.
1902.
1903.
1904.
1905.
1906.
1907.
1908.
1909.
1910.
1911.
1912.
FINDINGS
1913.
1914. The following are the major findings of this study:
1915.
The NAV proves that the Kotak Opportunity Equity Scheme has the better
performance when compare to all.
1916.
Kotak Emerging Equity Scheme has the stable growth in market.
1917.
Kotak Select Focus showed a fluctuating trend in the market.
1918.
The Standard deviation proves that the Kotak Emerging Equity Scheme has the
high risk when compared to all.
1919.
Kotak Balance has medium risk when compared to all.
1920.
Kotak Equity Arbitrage has low risk when compared to all.
1921.
The BETA proves that the Kotak Mid-Cap has the more volatile compared in the
market.
1922.
1923.
The Sharpe's index ratio proves that the Kotak Equity Arbitrage Equity Fund has
the better performance when compared to all.
Kotak 50 and Kotak Classic Equity Schemes has performed best in the market
among other schemes.
Kotak Equity Arbitrage Scheme has least performing fund among all the funds.
1924.
1925.
1926.
1927.
1928.
1929.
1930.
1931.
1932.
1933.
1934.
1935.
1936.
1937.
1938.
1939.
SUGGESTIONS:1940.
1941.
After analyzing mutual funds on the basis of Alpha, Beta, Mean, Standard
Deviation, Sharpes Ratio, NAV i suggest:1942.
To investors:1943.
A. Large cap equity fund:1944.
a) For the investors who wants higher returns with high risk appetites go for: Kotak
50.
1945.
b) For investors who want moderate or good return with low risk appetite go for:
Kotak Classic Equity Fund.
1946.
B. Mid and small cap equity fund:1947.
a) For investor who wants higher return with high risk appetites go for: Kotak
Emerging Equity Scheme
1948.
b) For investors who want moderate return with low risk appetite go for: Kotak MidCap
1949.
c) For investors who want good return with low risk appetite go for: Kotak Equity
Arbitrage
1950.
C. Diversified equity fund:1951.
a. For investor who wants higher return with high risk appetites go for:
Kotak Select Focus
1952.
b. For investors who want moderate return with low risk appetite go for:
Kotak Opportunity
1953.
D. Other Funds:a. For investor who wants higher return with high risk appetites go
for: Kotak Tax Saver
1954.
b. For investors who want moderate return with low risk appetite go
for: Kotak Balance
1955.
1956.
To the company
1957.
1. Kotak Mahindra Asset Management should initiate financial knowledge drive to
attract more investors.
1958.
2. Kotak Mahindra Asset Management should launch financial inclusion program for
untapped market such as small towns, villages etc.
1959.
1960.
1961.
1962.
1963.
1964.
1965.
1966.
1967.
1968.
1969.
1970.
1971.
1972.
1973.
1974.
1975.
1976.
1977.
1978.
1979.
1980.
1981.
1982.
1983.
1984.
1985.
1986.
1987.
1988.
1989.
CONCLUSION
1990.
1991.
In order to study the concept of mutual fund we should note that a mutual
fund is trust that pools the money of several investors and manages investment on behalf.
The fund collects this money from investors through various schemes. Each scheme is
differentiated by its objectives of investments or in other words a broadly defined purpose
of how the collected money is going to be involved.
1992.
1993. Investor invests in mutual fund due to following advantages: they have
professional management, diversification, convenient administration, return potential,
low cost, liquidity.
1994.
1995. By comparing the above mentioned schemes I came to know the risk and
return relation between the specified schemes. Therefore investors before investing in any
Mutual Fund scheme they should study the risk and return relation. And if the risk and
return is been matched with their planning, then only the investors should go for Mutual
Fund schemes.
1996.
1997. So the future of mutual funds in India is bright, because it meets investors
needs perfectly. This will give boost to Indian investors and will attract foreign investors
also. It will lead to the growth of strong institutional framework that can support the
capital markets in the long run.
1998.
1999.
2000.
2001.
2002.
2003.
2004.
2005.
2006.
2007.
2008.
2009.
2010.
2011.
2012.
2013.
2014.
2015.
2016.
2017.
2018.
2019.
2020.
2021.
2022.
2023.
2024.
2025.
2026.
2027.
2028.
2029.
2030.
2031.
2032.
2033.
2034.
CHAPTER - 8
bibliography
2035.
2036.
2037.
2038.
2039.
2040.
2041.
2042.
2043.
2044.
2045.
2046.
2047.
2048.
2049.
2050.
2051.
2052.
2053.
2054.
2055.
2056.
2057.
2058.
2059.
2060.
2061.
2062.
2063.
2064.
2065. BIBLIOGRAPHY:
2066.
2067.
Websites:2068.
www.valuesearchonline.com
www.moneycontrol.com
www.investopidia.com
www.amfiindia.com
2069.
2070.
2071.
2072.
www.assetmanagement.kotak.com
2073.
www.mutualfund.com
2074.
2075.
2076.
Newspapers:2077.
Business Standards
2078.
Economic Times
2079.
2080.
Books:2081.
2082.
Authors
Books
2083.
V K Bhalla
Investment Management
2084.
I M Pandey
Financial Management 7thEdition
2085.
Preeti Singh
Portfolio Management
2086.
2087.
2088.
2089.
2090.
2091.
2092.
2093.
2094.
ABBREVIATION
2095.
2096.
2097.
1.
2098.
2. AMC- Asset Management Company
2099.
3. SEBI- Securities Exchange Board Of India
2100.
4. DP- Depository Participants
2101.
5. PPF- Public Provident Fund
2102.
6. NAV- Net Asset Value
2103.
7. HNIs- High Net Worth Individuals
2104.
8. CRM- Customer Relationship Management
2105.
9. AUM- Asset Under Management
2106.
10.
SIP- Systematic Investment Plan
2107.
11.
STP- Systematic Transfer Plan
2108.
12. SWP- Systematic Withdrawal Plan
2109.