CHAPTER-V DATA ANALYSIS & INTERPRETATION

RESULTS AND DISCUSSION The main objective of the study is evaluating the performance of RELIANCE company. mutual

fund. The data was obtained from the objective sources by the fact sheets published by the

Initially every fund selected for the study is analyzed thoroughly. The monthly returns are computed for every option that comes under the schemes. Then Arithmetic mean which is the most popularly and widely used measure for representing the entire data by one value is calculated. Following this Standard deviation is calculated. This measures the absolute dispersion between the returns of the fund. The greater the standard deviation the greater the magnitude of deviations.

The study evaluates the performance on mutual fund equity schemes of RELIANCE mutual fund. Ascertain the relationship between the movement of SENSEX & NIFTY Suggest the profitable portfolio RETURNS & fluctuation in NAV of mutual fund equity schemes. Ascertain the volatility and market risk on selected equity schemes in mutual funds. construction to unit holder.

Analysis is made on return and risk (total risk and systematic risk) of the fund. This is also compared with the benchmark portfolios. Then the level of diversification of all selected funds is figured out. The standard ratios to evaluate the risk-adjusted performance measure are calculated. The calculations were done with Microsoft Excel.

TABLE 5.1 AN ANALYSIS FOR THE 3 YEARS UNDER THE BETA MEASURE NIFTY VS NAV

FUND NAME S.NO 1 2 3 4 5 6 RELIANCE GROWTH FUND RELIANCE VISION FUND RELIANCE EQUITY FUND RELIANCE BANKING FUND RELIANCE INFRASTRUCTUREFUND RELIANCE PHARMA FUND

NIFTY VS NAV FOR THE PERIOD OF 3 YEARS (08,09,10) 0.90318 0.88957 0.90891 0.84408 0.88895 0.90999

CHART 5.1 BETA MEASURE NIFTY Vs NAV

INTERPRETATION The table shows that the beta measures funds have been performed well when compared to NIFTY Vs NAV returns of RELIANCE BANKING FUND 0.84408 is better than other funds. The table shows that the beta measures funds have been performed well when compared to NIFTY Vs NAV returns of RELIANCE INFRASTRUCTUREFUND 0.88895 and RELIANCE VISIONFUND is the moderate performance. The table shows that the beta measures funds is not performed well when compared to NIFTY Vs NAV returns of RELIANCE GROWTHFUND 0.9038 and RELIANCE PHARMA fund is the last rank of performance.

TABLE 5.2 AN ANALYSIS FOR THE 3 YEARS UNDER THE BETA MEASURE SENSEX Vs NAVTANDARD deviationE FUND ve been performed well when co TO UNIT HOLDER FOR 3 YEARS UNDER THE STANDARD DEVIATION CHART 5.2 BETA MEASURE SENSEX Vs NAV

SENSEX VS NAV S.NO 1 2 3 4 5 6 FUND NAME RELIANCE GROWTHFUND RELIANCE VISIONFUND RELIANCE EQUITY FUND RELIANCE BANKING FUND RELIANCE INFRASTRUCTUREFUND RELIANCE PHARMA FUND FOR THE PERIOD OF 3 YEARS (08,09,10) 0.92873 0.90693 0.93191 0.86103 0.91046 0.92514

INTERPRETATION The table shows that the beta measures funds have been performed well when compared to SENSEX Vs NAV returns of RELIANCE BANKING FUND 0.86103 is better than other funds. The table shows that the beta measures funds have been performed well when compared to SENSEX Vs NAV returns of RELIANCE VISIONFUND 0.90693 and RELIANCE INFRASTRUCTUREFUND 0.91046 is moderate performance. The table shows that the beta measures funds is not performed well when compared to SENSEX Vs NAV returns of RELIANCE GROWTHFUND 0.91046 is last performance.

TABLE 5.3 AN ANALYSIS FOR THE 3 YEARS UNDER THE CORRELATION MEASURE NIFTY Vs NAV CHART 5.3 CORRELATION MEASURE NIFTY VS NAV

S.NO

FUND NAME

NIFTY Vs NAV FOR THE PERIOD OF 3 YEARS (08,09,10) 0.83369 0.76871 0.78108 0.74613 0.78260 0.80308

1 2 3 4 5 6

RELIANCE GROWTHFUND RELIANCE VISIONFUND RELIANCE EQUITY FUND RELIANCE BANKING FUND RELIANCE INFRASTRUCTUREFUND RELIANCE PHARMA FUND

INTERPRETATION The table shows that the correlation measures funds have been performed well when compared to NIFTY Vs NAV returns of RELIANCE GROWTHFUND is 1st positive returns. The table shows that the correlation measures funds have been performed well when compared to NIFTY Vs NAV returns of RELIANCE PHARMA FUND and RELIANCE INFRASTRUCTUREFUND is modearate positive returns. The table shows that the correlation measures funds is not performed well when compared to NIFTY Vs NAV returns of RELIANCE BANKING FUND is last positive returns.

TABLE 5.4 AN ANALYSIS FOR THE 3 YEARS UNDER THE CORRELATION MEASURE SENSEX Vs NAV

CHART 5.4 CORRELATION MEASURE SENSEX Vs NAV

S.NO

FUND NAME

SENSEX VS NAV FOR THE PERIOD OF 3 YEARS (08,09,10) 0.83589 0.76416 0.78088 0.74213 0.78312 0.79609

1 2 3 4 5 6

RELIANCE GROWTHFUND RELIANCE VISIONFUND RELIANCE EQUITY FUND RELIANCE BANKING FUND RELIANCE INFRASTRUCTUREFUND RELIANCE PHARMA FUND

INTERPRETATION The table shows that the correlation measures funds have been performed well when compared to SENSEX VS NAV returns of RELIANCE GROWTHFUND is the 1st positive returns. The table shows that the correlation measures funds have been performed well when compared to SENSEX VS NAV returns of RELIANCE PHARMA FUND and RELIANCE INFRASTRUCTUREFUND is moderate positive returns. The table shows that the correlation measures funds have been performed well when compared to SENSEX VS NAV returns of RELIANCE BANKING FUND is last positive returns.

STANDARD DEVIATION S.NO 1 2 3 4 5 6 FUND NAME RELIANCE GROWTHFUND RELIANCE VISIONFUND RELIANCE EQUITY FUND RELIANCE BANKING FUND RELIANCE INFRASTRUCTUREFUND RELIANCE PHARMA FUND 2005 0.01600 0.01881 0.01880 0.01958 0.01695 0.01725 2006 0.01714 0.01768 0.01732 0.01700 0.01777 0.01771 2007 0.01504 0.01477 0.01554 0.01317 0.01572 0.01539

TABLE 5.5 ANALYSES FOR THE FUNDS PERFORMANCE RETURNS OF MARKET VOLATILITY FOR 3 YEARS UNDER THE STANDARD DEVIATION

CHART 5.5 STANDARD DEVIATION MEASURE

INTERPRETATION From the table we can ascertain the volatility of RELIANCE GROWTHfund is less market risk compared to other funds in 2005.

From The table we can ascertain the volatility of RELIANCE BANKING fund is less market risk compared to other funds in 2006.

From The table we can ascertain the volatility of RELIANCE BANKING fund is less market risk compared to other funds in 2007.

TABLE 5.6 ANALYSES FOR THE FUNDS PERFORMANCE RETURNS OF MARKET VOLATILITY FOR 3 YEARS (OVERALL) UNDER THE STANDARD DEVIATION

CHART 5.6 STANDARD DEVIATION MEASURE (OVERALL)

S.NO

FUND NAME

STANDARD DEVIATION FOR THE PERIOD OF 3 YEARS (08,09,10) 0.01606 0.01715 0.01725 0.01677 0.01681 0.01680

1 2 3 4 5 6

RELIANCE GROWTHFUND RELIANCE VISIONFUND RELIANCE EQUITY FUND RELIANCE BANKING FUND RELIANCE INFRASTRUCTUREFUND RELIANCE PHARMA FUND

INTERPRETATION The table shows the evaluation of funds as per standard deviation measures. We can able to ascertain that all funds are in positive points. The volatility of market risk of RELIANCE GROWTHFUND shows free risk compared to other funds. The table shows the evaluation of funds as per standard deviation measures. We can able to ascertain that all funds are in positive points. The volatility of market risk of RELIANCE BANKING FUND and RELIANCE PHARMA FUND and shows free risk compared to other funds. It is moderate performance. The table shows the evaluation of funds as per standard deviation measures. We can able to ascertain that all funds are in positive points. The volatility of market risk of RELIANCE EQUITY OPPORTUNITIUS FUND shows free risk compared to other funds. Its ranks in last performance.

STANDARD S.NO 1 2 3 4 5 6 FUND NAME RELIANCE GROWTHFUND RELIANCE VISIONFUND RELIANCE EQUITY FUND RELIANCE BANKING FUND RELIANCE INFRASTRUCTUREFUND RELIANCE PHARMA FUND RETURNS (08,09,10) 32.41 33.10 33.59 24.13 41.88 31.90 BETA (08,09,10) 0.90 0.95 1.00 0.84 1.00 0.95 DEVIATION (08,09,10) 23.49 26.93 27.10 24.93 27.93 25.94

TABLE 5.7 ANALYSES FOR THE FUNDS PROFITABLE PORTFOLIO CONSTRUCTION TO UNIT HOLDER FOR 3 YEARS UNDER THE RETURNS, BETA & SD CHART 5.7 RETURNS MEASURES FOR PROFITABLITY PORTFOLIO

INTERPRETATION The table shows that the returns measures funds have been performed well when compared to NAV returns of RELIANCE INFRASTRUCTUREFUND 41.88 is higher than other funds. The table shows that the returns measures funds have been performed well when compared to NAV returns of RELIANCE EQUITY FUND 33.59 and RELIANCE VISIONFUND 33.10 is higher than other funds. Its ranks in moderate performance. The table shows that the returns measures funds have not performed well when compared to NAV returns of RELIANCE BANKING FUND 24.13 is higher than other funds. Its ranks in last performance. CHART 5.8 BETA MEASURES FOR PROFITABLITY PORTFOLIO

INTERPRETATION The table shows that the beta measures funds have been performed well when compared to NAV returns of RELIANCE BANKING FUND 0.84 is better than other funds. The table shows that the beta measures funds have been performed well when compared to NAV returns of RELIANCE GROWTHFUND 0.90 is better than other funds. Its ranks second performance. The table shows that the beta measures funds have been performed well when compared to NAV returns of RELIANCE PHARMA FUND and RELIANCE VISIONFUND 0.95 is better than other funds. Its ranks moderate performance. CHART 5.9 STANDARD DEVIATION MEASURES FOR PROFITABLITY PORTFOLIO

INTERPRETATION The table shows that the standard deviation measures funds have been performed well when compared to NAV returns of RELIANCE GROWTHFUND 23.49 is better than other funds. The table shows that the standard deviation measures funds have been performed well when compared to NAV returns of RELIANCE BANKING FUND 24.93 and RELIANCE PHARMA FUND 25.94 is better than other funds. Its ranks moderate performance. The table shows that the standard deviation measures funds have been performed well when compared to NAV returns of RELIANCE INFRASTRUCTUREFUND 27.93 is better than other funds. Its ranks last performance.

TABLE 5.8 ANALYSES FOR THE FUNDS PROFITABLE PORTFOLIO CONSTRUCTION TO UNIT HOLDER FOR 3 YEARS UNDER THE RETURNS FOR RANKING METHOD

CHART 5.10 RETURNS RANK MEASURES FOR PROFITABLITY PORTFOLIO

S.NO 1 2 3 4 5 6 RELIANCE

FUND NAME INFRASTRUCTURE FUND

RETURNS (08,09,10) 41.88 33.59 33.10 32.41 31.90 24.13

RANK 1 2 3 4 5 6

RELIANCE EQUITY FUND RELIANCE VISIONFUND RELIANCE GROWTHFUND RELIANCE PHARMA FUND RELIANCE BANKING FUND

INTERPRETATION The table shows RELIANCE INFRASTRUCTUREFUND 41.88 is the highest ratio & it is ranked on the top. The table shows RELIANCE EQUITY FUND 33.59 is the highest ratio & it is ranked on the second. The table shows RELIANCE VISIONFUND 33.10 is the highest ratio & it is ranked on the third. The table shows RELIANCE GROWTHFUND 32.41 is the highest ratio & it is ranked on the fourth. The table shows RELIANCE PHARMA FUND 31.90 is the highest ratio & it is ranked on the fifth.

 The table shows RELIANCE BANKING FUND 24.13 is the highest ratio & it is ranked on the sixth.

TABLE 5.9 ANALYSES FOR THE FUNDS PROFITABLE PORTFOLIO CONSTRUCTION TO UNIT HOLDER FOR 3 YEARS UNDER THE BETA FOR RANKING METHOD

CHART 5.11 BETA RANK MEASURES FOR PROFITABLITY PORTFOLIO

S.NO 1 2 3 4 5 6

FUND NAME RELIANCE BANKING FUND RELIANCE PURE EQUITY FUND RELIANCE PHARMA FUND RELIANCE SELECT EQUITY FUND RELIANCE INFRASTRUCTUREFUND RELIANCE EQUITY FUND

BETA (08,09,10) 0.84 0.90 0.95 0.95 1.00 1.00

RANK 1 2 3 3 5 5

INTERPRETATION The table shows RELIANCE BANKING FUND 0.84 is the highest performance & it is ranked on the top. The table shows RELIANCE GROWTHFUND 0.90 is the second performance & it is ranked on the second. The table shows RELIANCE PHARMA FUND 0.95 is the third performance & it is ranked on the third. The table shows RELIANCE VISIONFUND 0.95 is the third performance & it is ranked on the third. The table shows RELIANCE INFRASTRUCTUREFUND 1.00 is the fifth performance & it is ranked on the fifth. The table shows RELIANCE EQUITY FUND 1.00 is the fifth performance & it is ranked on the fifth.

STANDARD S.NO 1 2 3 4 5 6 FUND NAME RELIANCE GROWTHFUND RELIANCE BANKING FUND RELIANCE PHARMA FUND RELIANCE VISIONFUND RELIANCE EQUITY OPPORTUNITIES FUND RELIANCE INFRASTRUCTUREFUND DEVIATION (08,09,10) 23.49 24.93 25.94 26.93 27.10 27.93 RANK 1 2 3 4 5 6

TABLE 5.10 ANALYSES FOR THE FUNDS PROFITABLE PORTFOLIO CONSTRUCTION TO UNIT HOLDER FOR 3 YEARS UNDER THE STANDARD DEVIATION FOR RANKING METHOD CHART 5.12 STANDARD DEVIATION RANK MEASURES FOR PROFITABLITY PORTFOLIO

INTERPRETATION The table shows RELIANCE GROWTHFUND 23.49 is the highest performance & it is ranked on the top. The table shows RELIANCE BANKING FUND 24.93 is the second performance & it is ranked on the second. The table shows RELIANCE PHARMA FUND 25.94 is the third performance & it is ranked on the third. The table shows RELIANCE VISIONFUND 26.93 is the third performance & it is ranked on the fourth. The table shows RELIANCE EQUITY FUND 27.10is the fifth performance & it is ranked on the fifth. The table shows RELIANCE INFRASTRUCTUREFUND 27.93 is the fifth performance & it is ranked on the sixth.

TABLE 5.11 ANALYSES FOR THE FUNDS PROFITABLE PORTFOLIO CONSTRUCTION TO UNIT HOLDER FOR 3 YEARS UNDER THE RETURNS, BETA & STANDARD DEVIATION FOR FINAL RANKING METHOD

S.NO 1 2 3 4 5 6

FUND NAME RELIANCE GROWTHFUND RELIANCE BANKING FUND RELIANCE VISIONFUND RELIANCE PHARMA FUND RELIANCE INFRASTRUCTUREFUND RELIANCE EQUITY OPPORTUNITIES FUND

RANK TOTAL 4+2+1 6+1+2 3+3+4 5+3+3 2+5+5 1+5+6

TOTAL POINTS 7 9 10 11 12 12

FINAL RANK 1 2 3 4 5 5

CHART 5.13 OVER ALL RANKING MEASURE

INTERPRETATION From analyzing all three tables of Returns, Standard Deviation and Beta we ascertain that the RELIANCE GROWTHFUND has performed well when compared to other funds. So, it is also stands first rank.

 RELIANCE BANKING FUND has performed well & stands second rank. RELIANCE VISIONFUND has performed well & stands third rank. RELIANCE PHARMA FUND has performed well & stands fourth rank. RELIANCE INFRASTRUCTUREFUND has performed well & stands fifth rank. RELIANCE EQUITY FUND has performed well & stands sixth rank.

TABLE 5.12 ANALYSES FOR THE FUNDS PERFORMANCE FOR THE LAST THREE YEARS (06, 07, AND 08) UNDER SHARPE RATIO

CHART 5.14 SHARPE RATIOS

INTERPRETATION S.NO 1 2 3 4 5 6 FUND NAME RELIANCE GROWTHFUND RELIANCE VISIONFUND RELIANCE EQUITY FUND RELIANCE BANKING FUND RELIANCE INFRASTRUCTUREFUND RELIANCE PHARMA FUND SHARPE RATIO YEARS (08,09,10) 1.12 1.07 1.06 0.86 1.25 1.05

The table shows that the RELIANCE INFRASTRUCTUREFUND has been performed well when compared last three years (06, 07, and 08).

The ratio of Sharpe is high for those funds and another one RELIANCE GROWTHFUND has been performed well when compared last three years (06, 07, and 08).

RELIANCE INFRASTRUCTUREFUND has performed well and has been occupied the first position. And also second positions are RELIANCE GROWTHFUND.

S.NO 1 2 3 4 5 6

FUND NAME RELIANCE GROWTHFUND RELIANCE VISIONFUND RELIANCE EQUITY FUND RELIANCE BANKING FUND RELIANCE INFRASTRUCTUREFUND RELIANCE PHARMA FUND

TREYNOR RATIO YEARS (08,09,10) 1.33 1.24 1.24 1.05 1.45 1.20

TABLE 5.13 ANALYSES FOR THE FUNDS PERFORMANCE FOR THE LAST THREE YEARS (06, 07, AND 08) UNDER TREYNOR RATIO

CHART 5.15 TREYNOR RATIOS INTERPRETATION The table shows that the RELIANCE GROWTHFUND has been

performed well when compared last three years (05, 06, and 07).

 The ratio of Sharpe is high for those funds and another one RELIANCE VISIONFUND and RELIANCE EQUITY FUND has been performed well when compared last three years (05, 06, and 07). RELIANCE GROWTHFUND has performed well and has been occupied the first position. And also second positions are RELIANCE VISIONFUND and RELIANCE EQUITY FUND.

CHAPTER-VI 6.1 FINDINGS OF THE STUDY

RELIANCE INFRASTRUCTUREFund performed well in giving expected returns in last three years as per Treynor ratio. RELIANCE Equity fund performed well in giving expected returns in last three years as per Sharpe ratio. RELIANCE three years. Standard Deviation for RELIANCE GROWTHFund which indicates that the fund is not too aggressive and not to volatility only and also market risk stable in the year 2007. Standard Deviation for RELIANCE VISIONFund which indicates that the fund is not too aggressive and not to volatility only and also market risk stable in the year 2007. Standard Deviation for RELIANCE 2007. Standard Deviation for RELIANCE BANKING Fund which indicates that the fund is not too aggressive and not to volatility only and also market risk stable in the year 2007. Standard Deviation for RELIANCE INFRASTRUCTUREFund which indicates that the fund is not too aggressive and not to volatility only and also market risk stable in the year 2007. Standard Deviation for RELIANCE PHARMA Fund which indicates that the fund is not too aggressive and not to volatility only and also market risk stable in the year 2007. RELIANCE GROWTHFund gives stable returns & also volatility is low in last three years rather than other funds. Equity Opportunity Fund which indicates that the Mutual Equity schemes having positive relationship between movements

of NIFTY Vs NAV & another one SENSEX Vs NAV returns and also fluctuations in last

fund is not too aggressive and not to volatility only and also market risk stable in the year

 The funds as per returns, beta & standard deviation measure have been ranked. The Pure Equity Fund has the highest performance & it is ranked on the top. RELIANCE GROWTHFund has the highest Profitable returns and it is giving expected returns to the unit holders. RELIANCE EQUITY fund & RELIANCE INFRASTRUCTUREFund has the lowest performance and it is ranked on the last. Those are all RELIANCE Mutual Equity Schemes have been returns higher than

average returns with low total risk & beta.