Professional Documents
Culture Documents
1. Acknowledgement
2. Preface
3. Student’s Declaration
4. Objective
5. Proposed Methodology
6. Background of
a. Standard Chartered
b. Standard Chartered AMC
7. Mutual Fund
a. Introduction
b. Characteristics of MF
c. About MF Industry
d. Regulatory Structure of MF in India
e. Concept & Role of MF
f. Types of MF Schemes
g. Major Mutual Funds in India
h. 5 Easy steps to Invest in Mutual Fund
i. 5 Pointers to Measure the Performance MF
j. Tax rules for Mutual Fund Investors
k. Advantages & Disadvantages of MF
8. Who can invest in MF in India
9. Comparison of Investment Products
10.5 Common Mistakes of MF Investors
11.Data Interpretation of Investors
12. Products or Schemes offered by Standard Chartered AMC
13.comparison of top 10 open ended MF’s on 5 parameters
14.Beta calculation of S C Premier & S C Classic Funds
15.Snap-shot comparison sheet
16. Suggestion on the basis of life stages
17.Risk factors in MF
18.Bibliography
1
ACKNOWLEDGEMENT
I would also like to thank all the Faculty members of Badruka Institute
of Foreign Trade, Hyderabad for their continuous support and motivation.
2
PREFACE
Mutual Funds are going to be amongst the most exciting players in the years to
come. Fund managers of well oiled operations and their clients are in for a terrific
experience.
The question in everybody’s mind however is, “When?” When will investor’s
interest in Mutual Funds will really pick up? When the infatuations of the small investors
with primary will markets end? And when will the mutual fund gain the type of clout in
the stock market that their counterparts in the United States of America enjoy.
The Indian investor, believes in playing the market on his own, and will continue
to do so till the time his perception changes- which they undoubtedly will. Financial
institutions and mutual funds, leaving the small investor with no other option except the
mutual fund to put his savings in., will ultimately dominate the markets but for this to
happen, industry will have to be patient and prove that it can prove investors with better
returns than the markets. Plus they will have to make their operations much more
transparent and investor friendly. Well if we look at the trend and the figure of last one
year number it seems the shift has started to happen towards mutual fund shifting the
trend.
3
STUDENT’S DECLARATION
Rohit Dwivedi
4
OBJECTIVE
The objective of this project is to suggest the customers to invest in mutual fund on the
basis of their ages by comparing the top 10 open ended funds which are the market
leaders in the mutual fund industry.
The project would also reveal that which AMC is the market leader and
will facilitate in getting the better understanding from the investor side. This would help
Standard Chartered AMC in making marketing strategies which would help eliminate the
shortcomings and become the market leader in all the perspectives.
5
Proposed Methodology
STEP 1: UNDERSTANDING the product and detail study of the concept mutual funds.
STEP 2: This step is comprises of meeting with investors along with the Standard
Chartered employees.
STEP 3: Finally analyzing and interpreting the collected data and preparing the final
report.
6
BACKGROUND OF STANDARD CHARTERED
The Standard Chartered Group was formed in 1969 through a merger of two banks: The
Standard Bank of British South Africa founded in 1863, and the Chartered Bank of India,
Australia and China, founded in 1853.
Both companies were keen to capitalise on the huge expansion of trade and to earn the
handsome profits to be made from financing the movement of goods from Europe to the
East and to Africa.
Standard Chartered has a history of over 150 years in banking and operates in many of
the world's fastest-growing markets with an extensive global network of over 1,400
branches (including subsidiaries, associates and joint ventures) in over 50 countries in the
Asia Pacific Region, South Asia, the Middle East, Africa, the United Kingdom and the
Americas.
As one of the world's most international banks, Standard Chartered employs almost
60,000 people, representing over 100 nationalities, worldwide. This diversity lies at the
heart of the Bank's values and supports the Bank's growth as the world increasingly
becomes one market.
With strong organic growth supported by strategic alliances and acquisitions and driven
by its strengths in the balance and diversity of its business, products, geography and
people, Standard Chartered is well positioned in the emerging trade corridors of Asia,
Africa and the Middle East.
Standard Chartered derives over 90 per cent of profits from Asia, Africa and the Middle
East. Serving both Consumer and Wholesale Banking customers worldwide, the Bank
combines deep local knowledge with global capability to offer a wide range of innovative
products and services as well as award-winning solutions.
Trusted across its network for its standard of governance and corporate responsibility,
Standard Chartered takes a long term view of the consequences of its actions to ensure
that the Bank builds a sustainable business through social inclusion, environmental
protection and good governance.
Standard Chartered is also committed to all its stakeholders by living its values in its
approach towards managing its people, exceeding expectations of its customers, making a
difference in communities and working with regulators.
7
Establishment of Standard Chartered Bank around the world
Country Year Established Country Year Established
United Kingdom 1853 Australia 1964
China, India, Sri Lanka 1858 Mexico, Oman 1968
Hong Kong, Singapore 1859 Peru 1973
Indonesia, Pakistan 1863 Jersey 1978
Philippines 1872 Brazil 1979
Malaysia 1875 Venezuela 1980
Falkland Islands,
Japan 1880 1983
Macau
Zimbabwe 1892 Taiwan 1985
The Gambia, Sierra
1894 Cameroon 1986
Leone, Thailand
Ghana 1896 Nepal 1987
Botswana 1897 Vietnam 1990
Cambodia, South
USA 1902 1992
Africa
Bangladesh 1905 Iran 1993
Zambia 1906 Colombia 1995
Kenya 1911 Laos, Argentina 1996
Uganda 1912 Nigeria 1999
Tanzania 1917 Lebanon 2000
Bahrain 1920 Cote d’Ivoire 2001
Jordan 1925 Mauritius 2002
Korea 1929 Turkey 2003
Qatar 1950 Afghanistan 2004
Brunei, UAE 1958
SCMF manage our schemes through well-researched and thoroughly tested processes like
the 3 D Factor (For debt funds and helps us in predicting interest rate movements) and the
Equity Circle process.
SCMF also pioneered several service initiatives that helped increase transactional ease. It
was the first mutual fund to initiate:
1) Across the counter redemptions for all classes of investors in liquid funds,
8
2) One Call Free number 1800226622 accessible across 153 cities
3) Phone transact service wherein investors can redeem without having any
Personal Identification Number
Standard Chartered Mutual Fund currently manages assets in excess of Rs. 13400
crores ( USD 2.9 Billion ) and has touched the lives of more than lakhs of investors
residing in more than 1000 Indian towns.
b) The money is invested across sectors of the economy and various markets caps to
take advantage of the opportunities that exist in time.
B) Fund Strategies:
b)Theme Selection: To take advantage of various macroeconomic themes that play out
in ways that enhances corporate profitability eg. Infrastructure, consumption etc.
9
2) Standard Chartered Imperial Equity Fund(Launched at 16 Mar 2006):
b) The money is invested in companies that are well recognized, have a proven track
record, strong brands, low financial risk etc.
c)These companies show the promise of exhibiting high growth outside the Indian
shores and establish themselves as global players.
B) Fund Strategies :
b) Domestic demand: Take advantage of the high growth opportunities that domestic
demand offers in the backdrop of high GDP growth rates for India.
a) The fund has a bias towards a portfolio of companies which are going to undergo
transformatonal changes in their business prospectus.
b) The money is invested in companies that are at an early stage in their life-cycle and
are at the start of a period of high growth and profitability.
10
c)The investments will attempt to capture shifts in the business environment with
regard to new business opportunities, new technologies, new trends etc.
B) Fund strategies:
b)The independent mindset to pick-up specific stocks on the basis of large amounts of
homework makes this fund unique and reflects AMC’s belief and expertise.
Where there is the prospect of great wealth to be made there is also the reality of risk.
For investors who have a 3-5 year horizon a long term plan and the discipline to stay
by it.
INTRODUCTION
A mutual fund is created when investor put their money together. It is therefore a pool of
the investor’s funds.
The term mutual means that investors contribute to the pool and also benefit from the
pool. There are no other claimants to funds. The pool of funds help mutually by investors
is the mutual fund.
11
A mutual fund business is to invest the funds thus collected according to the wishes of the
investors who created the pool the invested appoints professional investment mangers, to
mange their funds.
1. A mutual fund actually belongs to the investors who have pooled their funds.
The ownership of the mutual fund is in the hand of the investor
4. The investor’s share in the fund is denominated by “UNIT”. The value of the
unit changes with changes in the portfolio value every day the value of the unit
of investment is called as the Net Assets Value or NAV.
Mutual Funds are financial intermediaries which pool the savings of numerous
individuals and invest the money, thus related in a diversified portfolio of securities,
including equity, bonds debentures and other money market instruments, thus spreading
and reducing risk. The objective of mutual fund is to maximize the return to the investor
who participates in equity indirectly through mutual funds.
Even though the mutual fund industry grown in asset value from Rs.7000 Crores to
2,00,000/- Crores today, this is just the tip of the iceberg. According to most Fund
Managers, the real boom is yet to come.
12
This is not expected, because mutual fund history in India, which dates back to
1964, when the first open-ended mutual fund scheme Unit-64 was launched by Unit Trust
of India, is still dominated by it. The focus initially was income earning securities, with
only 20 % of the Corpus going into equity. The early 80’s saw other schemes like the
growing income, fixed income, and monthly income being introduced by the UTI. But it
was only in 1986 that the first pure Growth equity scheme Master share was launched.
1989-90 was another landmark year in the history of mutual funds. For the fist
time, the monopoly of UTI over the industry was broken. The government allowed public
sector banks and insurance companies to enter this sector to bring in some competition.
But it was only in 1993, when the private sector was given the green signal to float
mutual funds, that excitement and competition came. Not only did the Government
allowed Indian companies to float mutual funds, it even allowed foreign funds to set in
shop in India and float funds. Thus, in one stroke, this sector was truly privatized.
Today there are about 12-14 private players in the market including foreign funds
such as Morgan Stanley, besides the nine public sector players and UTI. Together, these
funds have mobilized around Rs.6500 Crore from the market. The collections could have
been better, had not the public sector funds been busy complying with the SEBI
guidelines pertaining to the formation of asset management companies etc.
But the best is yet to come. A number of companies have plans to float mutual
funds at various stages of implementation. Some of the major names which are likely to
come to the market are Tata Sons in collaboration with Kleinwort Benson, ITC Classic
with Thread needle UR, Oppenheimer of US, plus a host of others. And according to
conservative guesstimates, mutual funds are set to collect over Rs.10000 Crore from the
market this year.
The reason for such confidence is that with SEBI firm about the small investor
taking the mutual fund route to investments in the stock market, and the regulatory
changes making it much more difficult to get allotments in primary markets, small
investors will not be left with many opportunities.
13
Regulatory Structure of Mutual Fund in India
14
Concept and role of Mutual Fund
A Mutual Fund is common pool of money into which Investor place their
contributions that are to be invested in accordance with a stated objective. The ownership
of the Fund is thus joint or “mutual”; the fund belongings to all investors.
A single investor’s ownership of the fund is in the same proportion as the amount
of the contribution made by him or her bears to the total amount of the fund.
A Mutual fund uses the money collected from investors to buy those assets, which
are specifically permitted by its stated investment objective. Thus, an Equity Fund would
buy mainly Equity assets-ordinary shares, preference shares, warrants etc. A bond fund
would mainly buy debt instruments such as debentures, bonds or government securities.
It is these assets, which are owned by the investors in the same proportions as there
contribution bears to the total contribution of all investors put together.
When an investor subscribes to a mutual fund, he or she buys a part of these assets or
the pool of funds that are outstanding at that time. It’s no different from buying
“shares” of a joint stock company, in which case the purchase makes the investor a
part owner of the company and its assets. In fact, in the USA, a Mutual fund is
constituted as an investment company and an investor “buys into the fund”, meaning
he buys the shares of the fund. In India, a mutual fund is constituted as a Trust and the
investor subscribes to the “units “ issued by the fund, which is where the term unit
Trust comes from.
15
Types of Mutual Funds Schemes
Schemes floated by the various mutual funds are essentially of two types, namely open-
ended and close-ended. The basic characteristics of these two types of mutual fund
schemes are given below:
Open-ended schemes are available for subscription all the year round excluding the
period of book-closing. They may or may not have a specified redemption period. The
sale and repurchase prices are fixed by the mutual fund concerned from time to time.
Repurchases are generally allowed al specified rated.
Each open-ended scheme must have a minimum corpus of Rs.50 crore. In case the fund
manager is not able to raise this amount at the time of issue, or 60 % of the targeted
amount whichever is higher, the entire subscription must be returned to the investor.
16
CLOSE-ENDED SCHEMES
These are open for subscription only during a specified period. Generally the redemption
dates are also specified when the investor can redeem their units. The duration of this
scheme varies: normally it is 5-7 years. Repurchase during the intervening period may or
may not be allowed. Some of the schemes though have a repurchase facility after a
certain period. Many of these schemes are listed in stock exchanges, except for some of
the close-ended income schemes .
Equity schemes are hence not suitable for investors seeking regular income or needing
to use their investments in the short-term. They are ideal for investors who have a
long-term investment horizon. The NAV prices of equity fund fluctuates with market
value of the underlying stock which are influenced by external factors such as social,
political as well as economic. HDFC Growth Fund, HDFC Tax saver and HDFC
Index Fund are examples of equity schemes.
Debt Based Schemes: These schemes, also commonly called Income Schemes, invest in
debt securities such as corporate bonds, debentures and government securities. The prices
of these schemes tend to be more stable compared with equity schemes and most of the
returns to the investors are generated through dividends or steady capital appreciation.
These schemes are ideal for conservative investors or those not in a position to take
higher equity risks, such as retired individuals. However, as compared to the money
market schemes they do have a higher price fluctuation risk and compared to a Gilt fund
they have a higher credit risk.
17
Liquid Income Schemes: Similar to the Income scheme but with a
shorter maturity than Income schemes. An example of this scheme is the
HDFC Liquid Fund.
Gilt Funds: This scheme primarily invests in Government Debt. Hence the investor
usually does not have to worry about credit risk since Government Debt is generally
credit risk free. HDFC Gilt Fund is an example of such a scheme.
HYBRID SCHEMES :
These schemes are commonly known as balanced schemes. These schemes invest
in both equities as well as debt. By investing in a mix of this nature, balanced schemes
seek to attain the objective of income and moderate capital appreciation and are ideal for
investors with a conservative, long-term orientation. HDFC Balanced Fund and HDFC
Children’s Gift Fund are examples of hybrid schemes.
Interval Schemes: These schemes combine the features of open-ended and closed-ended
schemes. They may be traded on the stock exchange or may be open for sale or
redemption during pre-determined intervals at NAV based prices.
From the investments point of view the existing schemes can be further divided into 4
major categories :
1. GROWTH SCHEMES : These are usually close-ended schemes. The aim of such
schemes is to provide capital appreciation to their investors and accordingly a
substantial part of the Corpus is invested in equities an convertible debentures.
Such schemes are usually listed in the major stock exchanges and the capital
18
2. appreciation is reflected in their market value i.e. NAV. They may or may not
declare dividends even though the declaration of annual dividends represents the
health of a scheme.
3. EQUITY-LINKED SCHEMES (ELSS) : These are popularly known as tax-
planning schemes . They are essentially close-ended growth schemes in nature.
They are floated by almost all the public sector mutual funds in the last quarter of
each financial year, some of the essential characteristics are :
a. Investment up to a ceiling of Rs.1,00,000/ come under Section 80C of the
Income Tax Act.
b. Repurchase is allowed after a specified period- usually 3 years.
c. During the lock-in period of 3 years their units cannot be traded, pledged or
transferred.
19
11) Kotak Mahindra Mutual Fund
c) Mutual funds are much like any other product, in that there are manufacturers who
provide the product and there are dealers who sell them.
20
a) for the short term or long term want to invest
3) Purchase:
a) Systematic Investment Plan (SIP): Allows you to save a part of your income
regularly. Also used to reduce risk when investing in schemes targeting aggressive
growth.
c) Automatic debit: Saves the hassle of writing a cheque when making an investment.
Your account is debited automatically for the amount invested.
d) Dividend Plan :
A) Dividend Payout: Under this plan investor can redeem his/her dividend at specific
times.
B) Dividend Reinvestment: Under this plan investor’s dividend is reinvested back to it’s
principal amount which therefore increase the number of units investor is holding.
e) Growth: Under this plan income generated from investment will put back to it’s
invested amount which therefore increases the value of each unit customer is holding.
Your account statement indicates your current holding in the scheme that you have
invested.
21
b) The transaction slip: The transaction slip at the end of the account statement can be
used for additional purchases, redemptions or to intimate the mutual fund on any change
in bank mandates/address.
c) NAV: The NAVs of all the open-ended schemes are published at the fund's website,
financial newspapers and AMFI (Association of Mutual Funds) web-site
www.amfiindia.com.
5) EXIT:
Every AMC advice that every investor should monitor the his/her units NAV periodically
but AMC also recommend their unit holders to not get swayed by short term
considerations in deciding their exit.
Redemption: In case of open ended funds investor can redeem his/her invested amount.
Most funds take 1-3 days to credit your account with your redemption proceeds.
22
5 Pointers to Measure Mutual Fund Performance
23
As per the Finance Bill 2007
Equity schemes Other schemes Dividend income Dividend distribution tax
Short Long Short Long TDS All Schemes Equity Liquid Other
Term Term Term Term Schem Schemes Schemes
Capita Capital Capital Capita es
l Gains Gain Gains l Gain
Resident 10% NIL AS PER 10% NIL TAX FREE NIL 28.32% 14.16%
Individual SLAB (20% (25% (12.5%
/ HUF with +10%surc +10%surc
indexa harge+edu harge+3%
tion) cation education
cess) cess)
Partnership 10% NIL 30% 10% NIL TAX FREE NIL 28.32% 22.66%
Firms (20% (25% (20%
with +10%surc +10%
indexa harge+edu surcharge
tion) cation +3%
cess) education
cess)
AOP/BOI 10% NIL AS PER 10% NIL TAX FREE NIL 28.32% 22.66%
SLAB (20% (25% (20%
with +10%surc +10%
indexa harge+edu surcharge
tion) cation +3%
cess) education
cess)
Domestic 10% NIL 30% 10% NIL TAX FREE NIL 28.32% 22.66%
Companies (20% (25% (20%
with +10%surc +10%
indexa harge+edu surcharge
tion) cation +3%
cess) education
cess)
NRIs 10% NIL AS PER 10% STCG- TAX FREE NIL 28.32% 14.16%
SLAB (20% 30%L (25% (12.5%
with TCG- +10%surc +10%surc
indexa 20%Af harge+edu harge+3%
tion) ter cation education
providi cess) cess)
ng for
indexa
t
24
ADVANTAGES OF MUTUAL FUNDS:
POINTS:
Professional Management – The investors does not have the skills and the
resources of their own to succeed in today’s fast moving, global and sophisticated
markets. Thereby they benefits from the professional management skills brought in
by the fund in the management of investor’s portfolio.
of the most important benefits of a collective investment vehicle like the mutual
fund.
25
Reduction of Transaction Costs –When going through a fund the investor has the
benefit of economies of scale, funds pay lesser cost because of larger volumes, and
this benefit is passed onto its investors.
No Control over cost – An investor in Mutual Funds has no control over the
overall cost investing as he pays investment management fees as long as he
remains with the fund. He also pays fund distribution costs, which he would not
incur in direct investing.
No Tailor-made Portfolios –Investors who invest on their own can build their
own portfolios whereas investing through funds involves delegating this decision
to the fund managers.
a) Residents including
1) Resident Indian Individuals
2) Indian Companies
26
3) Indian Trusts/Charitable Institutions
4) Banks
5) Non-Banking Finance Companies
6) Insurance Companies
7) Provident Funds
27
Comparison of Investment products:
Investor tends to constantly compare one form of investment with another
Investors certainly look for the best returns for different option. However, to determine
which option is better, the comparison should be made in terms of other benefits that the
investor ought to look for in any investment.
28
THE FIVE MOST COMMON MISTAKES MUTUAL FUND
INVESTORS MAKE
Being affected by new in the market when you’re supposed to be investing for the
long term
29
Data Interpretation of Investors:
From the given analysis we see that 75% of the investors do not deal in Mutual
funds but they still believe in the traditional mode of investment, which means
there still exists a high degree of Mutual Fund un-awareness among the people.
Therefore focus should be on Investors education.
There is a great diversity in the pattern of investment , majority of people who are
mostly the business class people invest for long term as they look for the high
returns and long term capital appreciation. These people have great capacity to take
risk they are called as Risk Takers , while rest invest for short term which mostly
comprise of service class people who go for regular/Monthly income plans i.e.
short term benefits.
Customers who are aware of the market situations perfectly find it futile to invest
through bank and generally had brokers who refund part of the commission to
them.
30
STANDARD CHARTERD EQUITY FUNDS LOAD
STRUCTURE
31
PRODUCTS/SCHEMS OFFERED BY STAN-C (AMC):
32
SWOT ANALYSIS OF STANDARD CHARTERED VIZ-A-VIZ
OTHER FUND HOUSES
Strengths: Weakness:
Opportunity: Threats:
RISK FACTORS
• Mutual Funds and Securities investment are subject to market risks and there can
be assurance or guarantee that the scheme objectives will be achieved.
• As with any investment in securities, the Net Asset Value of Unit issued under the
Scheme may go up or down depending on the various factors and farces affecting
the capital markets.
33
• Past performance of the Sponsors and their affiliates / AMC / Mutual Fund and its
scheme do not indicate the future performance of the schemes of the Mutual Fund.
• The Sponsors are not responsible or liable for any loss or shortfall resulting from
the operations of the scheme beyond the contribution of Rs 1 lakh each made by
them towards the corpus of the Mutual Fund.
As per SEBI circular ref. SEBI/IMD/CIR No. 10/22701/03 dated December 12, 2003
read with circular ref SEBI/IMD/CIR NO. 1/42529/05 dared June 14, 2005, it is specified
inter alias that each portfolio under a scheme should have a minimum of 20 investors and
no single investor should account for more than 25% of the corpus of such portfolio.
34
INVESTMENT COMPARISON SHEET
FUND NAME EXP. FRONT BCK END MIN INITIAL PORTFOLIO TENURE(YRS)
RATIO % END LOAD% INVESTMENT MANAGER
LOAD% (Rs)
35
INVESTMENT GRAPH
INVESTMENT COMPARISON
EXPENSE RATIO & LOAD
3
2.5
2 Expense Ratio %
1.5
1 Front End Load %
0.5
0
ICICI Pru
HDFC Top
Reliance
Prudence
Franklin India
S C Premier
Service
S C Classic
opportunities
BNP Paribas
TATA Equity
Opportunities
ABN AMRO
Growth
HDFC
Sundaram
Equity
Equity
200
Prima
TOP 10 FUNDS
DESCRIPTON:
STATEMENT:
36
PORTFOLIO COMPARISON SHEET
37
MARKET CAP & ASSETS P/E RATIO
0
10
20
30
40
50
ABN AMRO
0
5000
10000
15000
20000
25000
30000
opportunities
ABN AMRO
Franklin India
Franklin India Prima
HDFC
HDFC Prudence
TOP 10 FUNDS
S C Classic
TOP 10 FUNDS
S C Classic
S C Premier Equity
S C Premier
PORTFLIOCOMPARISON
Sundaram Equity
P OR TFOLIO C OMPAR ISON
TATA Equity Sundaram
BNP Paribas
PORTFOLIO (P/E RATIO) COMPARISON GRAPH
TATA Equity
Opportunities
38
DESCRIPTON:
STATEMENT:
On the basis of above mentioned description we can state that STATNDARD
CHARTERED PREMIER EQUITY FUND has highest P/E ratio but small Market Cap
and Assets.While HDFC PRUDENCE has high P/E ratio, moderate Market Cap and
largest Assets whereas ABN AMRO OPPORTUNITIES has high P/E ratio, largest
Market Cap and low Assets.
39
PERFORMANCE COMPARISON SHEET
40
PERFORMANCE (RETURNS) COMPARISON GRAPH
A B N A M R O opportunities
P E R F O R M AN C E C O M P AR IS O N
F rank lin India P rim a
90
80
70 H D F C P rudenc e
60
RETURNS
50 H D F C Top 200
40
30
20 ICIC I P ru S ervic e Indus try
10
0 R elianc e G row th
1-M onth 6-M onth 1-Y ear Return(% )
R eturn(% ) Return(% ) S C Clas s ic E quity
T IM E P ER IO D(IN M O N T H S /YEA R )
S C P rem ier E quity
41
STATEMENT:
RETURNS ORGANIZATION
STANDARD CHARTERED PREMIER EQUITY has both 6 months and 1-year high
returns. While ABN AMRO OPPORTUNITIES has a 1-month high returns.
42
RISK & VOLATILITY COMPARISON SHEET
43
STATEMENT:
Because of Non-Availability of figures for some Funds we cannot give any comment
under this parameter. However on the basis of available data we can conclude that
FRANKLIN INDIA PRIMA & TATA EQUITY OPPORTUNITIES are little risky funds.
44
NAV COMPARISON SHEET
ABN AMRO 26. 51 JULY 13, 07 26. 51 JULY 13, 07 14. 06 19-jul-06
OPPORTUNITIES
FRANKLIN INDIA 236. 04 JULY 13, 07 236. 04 JULY 13, 07 149. 47 24-jul-06
PRIMA
HDFC PRUDENCE 128. 14 JULY 13, 07 128. 14 JULY 13, 07 85. 88 19-jul-06
HDFC TOP 200 124. 89 JULY 13, 07 124. 89 JULY 13, 07 81. 59 19-jul-06
SUNDARAM BNP 103. 32 JULY 13, 07 103. 32 JULY 13, 07 68. 98 24-jul-06
PARIBAS SELECT
MIDCAP
TATA EQUITY 69. 55 JULY 13, 07 69. 55 JULY 13, 07 41. 86 24-jul-06
OPPORTUNITIES
45
NAV ( 52 WEEKS H/L) COMPARISON GRAPH
NAV COMPARISON
NAV(52 WEEKS H/L)
350
300
250
200 52 Weeks High
150 52 Weeks Low
100
50
0 ICICI Pru
Franklin India
HDFC Top
S C Premier
Prudence
Reliance
opportunities
S C Classic
BNP Paribas
TATA Equity
Opportunities
Service
ABN AMRO
Growth
Sundaram
HDFC
Equity
Equity
200
Prima
TOP 10 FUNDS
DESCRIPTION:
NAV: Net Asset Value shows the per unit value of a mutual fund unit that an investor is
holding. High/Low NAV shows that by how much amount the invested amount is
appreciated or depreciated.
STATEMENT:
On the basis of above description we can state that RELIANCE GROWTH has the
highest all time high (52 weeks high) NAV 324.04
While STANDARDCHARTERED PREMIER EQUITY has the all time low (52 weeks
low) NAV 9.06
46
A) CO-VARIANCE =
B) VARIANCE (σ2 ) =
(Rj-Rj (bar)2 )
Σ= = 4.703
n-1
VARIANCE
D) ALPHA (α) =
47
FUND NAME VARIANCE CO-VARIANCE STANDARD BETA ALPHA
DEVIATION
STATEMENT:
On the basis of above table we can state that S C Premier Equity & S C Classic Equity
fund are less risky in comparison to their benchmark index BSE-200 as their Beta values
are less then 1 as well as they also have better returns then benchmark index as their
Alpha values are positive.
48
SNAP-SHOT(ALL 5 PARAMETERS) COMPARISON SHEET
1) HT-highest on parameter,
2) H-high on parameter,
3) A-avg on parameter
4) L-low on parameter ,
6) NR-not rated
49
PARAMETERS ABN FR.IND HDFC HDFC ICICI REL. S C SC SND. TATA. REMARKS
AMRO PRIMA PRU. TOP SERV. GRW. CLASS. PRE. MID EQU.
OPP. 200 EQU. EQU. CAP. OPP.
INVESTMENT H L L L A LT H HT A H *(FR,HDFC,
(EXP.RATIO) REL)
#(S C PRE)
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GENERAL CATEGORY COMPARISON SHEET
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SUGGESTION ON THE BASIS OF LIFE STAGES.
In a general perspective there are 3 basic motives behind holding the cash :
1) Speculative
2) Precautionary
3) Transactional
After the intense market survey on mutual fund investment is done we have bifurcated
people in 2 segments. We have done bifurcation mainly on the basis of life stages. After
survey we found that people at the age range of 25 years to 40 years who come under the
income bracket of Rs. 15000 to Rs. 30000 per month have more risk appetite and they
can easily take huge risk because of their speculative behavior then to the people who are
at the age range of 55 years and above and come under the same income bracket
(however people on this edge of their life cycle are mostly depend either on their family
members or on pension or on their lifetime savings or investments for e.g Life Insurance,
Post Office savings, Bank savings account, house rent, FD’s etc.) have less risk
appetite . They don’t want to take high risk on their hard earned money and are happy
with investments if it is giving conservative returns but secure their principal amount.
Also people at the age of 55 and above are in great need of cash in hand because at this
age most of them are done with their investments. Therefore they are more interested in
investments which can get them sufficient cash at regular intervals.
In general people at the age range of 25 years to 35 years are very speculative, and
because they are earning regular income so they don’t need to hold much cash in need,
they can also afford their daily expenses very easily. Therefore they are more interested
in investments which are little more risky but can get them handsome returns. As people
at this age have huge future needs for e.g having their own home and so they also more
interested in long term investments.
Hence on the basis of this survey and analysis we have done above we recommend
following funds to these 2 segments of investors.
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SUGGESTED FUNDS FOR BOTH SEGMENTS OF INVESTORS
55y &
ABOVE
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RISK FACTORS
• Mutual Funds and Securities investment are subject to market risks and there can
be assurance or guarantee that the scheme objectives will be achieved.
• As with any investment in securities, the Net Asset Value of Unit issued under the
Scheme may go up or down depending on the various factors and farces affecting
the capital markets.
• Past performance of the Sponsors and their affiliates / AMC / Mutual Fund and its
scheme do not indicate the future performance of the schemes of the Mutual Fund.
• The Sponsors are not responsible or liable for any loss or shortfall resulting from
the operations of the scheme beyond the contribution of Rs 1 lakh each made by
them towards the corpus of the Mutual Fund.
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BIBLIOGRAPHY
3. WWW.VALUERESEARCHONLINE.COM
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