PROJECT REPORT ON TO STUDY AND ANALYSIS OF PERFORMANCE OF EQUITY SCHEMES OF MUTUAL FUND

Submitted in Partial Fulfillment of the requirement for the Award of degree in Master of Business Administration (MBA) Bharati Vidyapeeth Deemed University, Pune

UNDER THE SUPERVISION OF

MS.RANPREET KAUR

SUBMITTED BY
MEHUL AGGARWAL ROLL NO. 33 MBA (HR)

SESSION: 2010-2012

ACCREDIATED BY NAAC WITH A GRADE

BHARATI VIDYAPEETH DEEMED UNIVERSITY

INSTITUTE OF MANAGEMENT AND ENTREPRENEURSHIP DEVELOPMENT, PUNE
PAUD ROAD, ERANDVANE, PUNE - 411038

CERTIFICATE OF COMPLETION

This is to certify that Mr. Mehul Aggarwal is a bonafide student of MBA program of the university in this institute for the year 2010-12 . As a part of the University curriculum, the student has

completed the project report titled To Study And Analysis of Performance of Equity Scheme of Mutual Fund. The project report is prepared by the student under the guidance of Ms.Ranpreet Kaur.

Ms.Ranpreet Kaur (Project Guide)

Prof. Pravin Mane (Program Coordinator)

Dr. Sachin Vernekar (Director)

Date- / / Place- Pune

STUDENT DECLARATION

I hereby certify that the project report entitled on To Study and Analysis of performance of equity schemes of mutual fund Submitted in partial fulfillment of the requirement for the award degree of Master of Business Administration to BHARATI VIDYAPEETH DEEMED UNIVERSITY, PUNE (India) is my original work and not submitted or the award of any other degree, diploma, fellowship, or any other similar title or prizes anywhere else.

MEHUL AGGARWAL ROLL NO. 33 MBA (HR)

ACKNOWLEDGEMENT

It is my proud privilege to express my deepest gratitude to a number of helping hands for their indefatigable cooperation that enabled me to shape my study. Indeed this page of acknowledgement shall never be able to touch the horizon of generosity of those, who rendered help to me. I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organizations. I would like to extend my sincere thanks to all of them. I am highly indebted to Ms.Ranpreet kaur for her guidance and constant supervision as well as for providing necessary information regarding the project & also for support in completing the project. My thanks and appreciations also go to my colleague in developing the project and people who have willingly helped me out with their abilities.

MEHUL AGGARWAL MBA (HR) 4

PREFACE

MBA is a stepping-stone to the management carrier and to develop good manager it is necessary that the theoretical must be supplemented with exposure to the real environment. Theoretical knowledge just provides the base and its not sufficient to produce a good manager thats why practical knowledge is needed. Therefore, the research product is an essential requirement for the student of MBA. This research project not only helps the student to utilize his skills properly learn field realities but also provides a chance to the organization to find out talent among the budding managers in the very beginning.

In accordance with the requirement of MBA course I have summer training project on the topic TO STUDY AND ANALYSIS OF PERFORMANCEOF EQUITY SCHEMES OF MUTUAL FUND. The main objective of the research project was to study the two instruments and make a detailed comparison of the two. For conducting the research project sample size of 6 mutual fund companies was selected so as to analysis the performance of equity schemes of 6 mutual fund companies. The information regarding the project research was collected through secondary data.

TABLE OF CONTENTS

Chapter No.

TITLE TITLE PAGE CERTIFICATE BY THE INSTITUTE STUDENT DECLARATION ACKNOWLEDGEMENT PREFACE

Page No.

Chapter 1 Chapter 2

LITERATURE REVIEW OBJECTIVE AND RESEARCH METHODOLOGY 2.1 Objective of training 2.2 Scope of training 2.3 Limitation of training 2.4Research methodology

1-23 24-26

Chapter 3

DATA ANALYSIS AND INTERPRETATION FINDINGS AND CONCLUSION BIBLIOGRAPHY

27-51

Chapter 4

52 53

Chapter 1

REVIEW

OF

LITERATURE

AND

THEORITICAL

BACKGROUND:MUTUAL FUND:
A mutual fund is a form of investment that pools money from many investors and invests the money in stocks, bonds, short-term money market instruments, and/or other securities. Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is invested by the fund manager indifferent types of securities depending upon the objective of the scheme.Thesecouldrange from shares to debentures to money market instruments. The income earnedthro ugh 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. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed portfolio at a relatively low cost. The small savings of all the investors are put together to increase the buying power and hire a professional manager to invest and monitor the money. Anybody with an investible surplus of as little as a few thousand rupees can invest in Mutual Funds. Each Mutual Fund scheme has a defined investment objective and strategy a mutual fund is a managed group of owned securities of several corporations. These corporations receive dividends on the shares that they hold and realize capital gains or losses on their securities traded. Investors purchase shares in the mutual fund as if it was an individual security. After paying operating costs, the earnings (dividends, capital gains or loses) of the mutual fund are distributed to the investors, in proportion to the amount of money invested. A mutual fund may be either an open-end or a closed-end fund. An open-end mutual fund does not have a set number of shares; it may be considered as a fluid capital stock. The number of shares changes as investors buys or sell their shares. Investors are able to buy and sell their shares of the company at any time for a market price. However the open-end market price is influenced greatly by the fund managers. On the other hand, closed-end mutual fund has a fixed number of shares and the value of the shares fluctuates with the market. But with close-end funds, the fund manager has less influence because the price of the underlining owned securities has greater influence Mutual fund is a mechanism for pooling the resources 7

by issuing units to the investors and investing funds in securities in accordance with objectives as disclosed in offer document. Investments in securities are spread across a wide cross-section of industries and sectors and thus the risk is reduced. Diversification reduces the risk because all stocks may not move in the same direction in the same proportion at the same time. Mutual fund issues units to the investors in accordance with quantum of money invested by them. Investors of mutual funds are known as unit holders. The profits or losses are shared by the investors in proportion to their investments. The mutual funds normally come out with a number of schemes with different investment objectives, which are launched from time to time .Unit Trust of India was the first mutual fund set up in India in the year 1963. In early1990s, Government allowed public sector banks and institutions to set up mutual funds. SEBI formulates policies and regulates the mutual funds to protect the interest of the investors. All mutual funds whether promoted by public sector or private sector entities including those promoted by foreign entities are governed by the same set of Regulations. A mutual fund is set up in the form of a trust, which has sponsor, trustees, Asset Management Company (AMC) and custodian. The trust is established by a sponsor or more than one sponsor who is like promoter of a company. The trustees of the mutual fund hold its property for the benefit of the unit holders. Asset Management Company (AMC) approved by SEBI manages the funds by making investments in various types of securities. Custodian, who is registered with SEBI, holds the securities of variousschemes of the fund in its custody. The trustees are vested with the general power of Superintendence and direction over AMC. They monitor the performance and compliance of SEBI Regulations by the mutual fund. The performance of a particular scheme of a mutual fund is denoted by Net Asset Value (NAV). In simple words, Net Asset Value is the market value of the securities held by the scheme. Since market value of securities changes every day, NAV of a scheme also varies on day-to-day basis. The NAV per unit is the market value of securities of a scheme divided by the total number of units of the scheme on any particular date. For example, if the market value of securities of a mutual fund scheme is Rs 200 lakh and the mutual fund has issued 10 lakh units of Rs. 10 each to the investors, then the NAV per unit of the fund is Rs.20. NAV is required to be disclosed by the mutual funds on a regular basis - daily or weekly depending on the type of scheme. The flow chart below describes broadly the working of a mutual fund:

MUTUAL FUND OPERATION FLOW CHART:

ORGANIZATION OF A MUTUAL FUND:

There are many entities involved and the diagram below illustrates the organizational set up of a mutual fund:

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Some of the AMCs operating currently are:

Name of the AMC Alliance Capital Asset Management (I) Private Limited Birla Sun Life Asset Management Company Limited Bank of Baroda Asset Management Company Limited Bank of India Asset Management Company Limited Can bank Investment Management Services Limited CholamandalamCazenove Asset Management Company Limited Dundee Asset Management Company Limited DSP Merrill Lynch Asset Management Company Limited Escorts Asset Management Limited First India Asset Management Limited GIC Asset Management Company Limited IDBI Investment Management Company Limited Indfund Management Limited ING Investment Asset Management Company Private Limited J M Capital Management Limited Jardine Fleming (I) Asset Management Limited Kotak Mahindra Asset Management Company Limited Kothari Pioneer Asset Management Company Limited JeevanBimaSahayog Asset Management Company Limited Morgan Stanley Asset Management Company Private Limited Punjab National Bank Asset Management Company Limited Nature of ownership Private foreign Private Indian Banks Banks Banks Private foreign Private foreign Private foreign Private Indian Private Indian Institutions Institutions Banks Private foreign Private Indian Private foreign Private Indian Private Indian Institutions Private foreign Banks

11

Reliance Capital Asset Management Company Limited State Bank of India Funds Management Limited Shriram Asset Management Company Limited Sun F and C Asset Management (I) Private Limited Sundaram Newton Asset Management Company Limited Tata Asset Management Company Limited Credit Capital Asset Management Company Limited Templeton Asset Management (India) Private Limited Unit Trust of India Zurich Asset Management Company (I) Limited

Private Indian Banks Private Indian Private foreign Private foreign Private Indian Private Indian Private foreign Institutions Private foreign

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HISTORY OF THE INDIAN MUTUAL FUNDS:

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Government of India and Reserve Bank of India. The history of mutual funds in India can be broadly divided into four distinct phases

First Phase 1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6, 700 crores of assets under management.

Second Phase 1987-1993 (Entry of Public Sector Funds)

1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987 followed by Cana bank Mutual Fund (Dec 87), 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 established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990. At the end of 1993, the mutual fund industry had assets under management of Rs.47, 004 crores.

Third Phase 1993-2003 (Entry of Private Sector Funds)

With the entry of private sector funds in 1993, a new era started in the Indian mutual fund industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in which the first Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund) Regulations 1996. The number of mutual fund houses went on increasing, with many foreign mutual funds setting up funds in India and also the industry has witnessed several mergers and acquisitions. As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805 crores. The Unit Trust of India with Rs.44, 541 crores of assets under management was way ahead of other mutual funds.

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Fourth Phase since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs.29, 835 crores as at the end of January 2003, representing broadly, the assets of US 64 scheme, assured return and certain other schemes. The Specified Undertaking of Unit Trust of India, functioning under an administrator and under the rules framed by Government of India and does not come under the purview of the Mutual Fund Regulations. The second is the UTI Mutual Fund, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76, 000 crores of assets under management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking place among different private sector funds, the mutual fund industry has entered its current phase of consolidation and growth.

IMPORTANCE OF MUTUAL FUNDS:

Mutual funds provide benefits of a diversified portfolio and expert fund management to a large number of investors. Hence, they form a very important part of the capital market. The following points explain the increasing importance of mutual funds:-

1.) MOBILIZATION OF DOMESTIC RESOURCES:

Mutual funds mobilize domestic resources and hence reduce dependence on outside funds. They help to tap vast potential of domestic savings and channelize them for profitable investments.

2.) PROFESSIONAL MANAGEMENT:

An average investor requires the help of an expert to reap the benefits of investments in stock market The services of the expert are also expensive. On the other hand, mutual funds are managed by professional managers who have the skill and expertise to make an organized investment strategy for the benefit of small investors.

3.) PORTFOLIO DIVERSIFICATION:

Lack of resources may limit the ability of an individual investor to invest in a diversified portfolio of securities. Mutual funds invest in a number of companies and this diversification reduces the risk of investment.

4.) REDUCE RISKS:

Portfolio management and diversification help mutual funds to reduce risk. The experience and expertise of mutual funds helps in building a diversified portfolio that minimizes risks and maximizes returns.

5.) MAXIMISE GAINS:

Mutual funds are managed by professionals who are highly skilled and competent in their jobs. They 14

maximize gains for investors by proper selection and timing of investment. It is to be noted that mutual funds are not a channel for getting rich quickly, but investment in them are long-term growth avenues.

ROLE OF MUTUAL FUNDS:

1. CHANNELISING SAVINGS:
Mutual funds channelize the saving of millions of individuals for investment in equity and debt instruments. These savings are mobilized, invested and returns are distributed in the same proportion to unit holders.

2. INSTRUMENT OF INVESTING MONEY:

Taking into account very low bank rate, keeping money in the bank deposits does not give high return. Also, investing money in the stock market is not quite feasible with a common investor who is not well-versed with the complexities in the stock market. So, mutual fund is a better option for investment for the common man who gets higher returns on his investment. Thus, mutual fund is an important instrument of investing money.

3. MOBILISATION OF SAVING:
Mutual funds mobilize the savings of millions of investors for profitable investments. It facilitates flow of savings from common man to industries.

4. BRIDGES GAP BETWEEN RETAIL INVESTORS AND CAPITAL MARKETS:

Mutual funds are important intermediaries in the capital market. Thus, they bridge the gap between investors and capital markets. The growth of mutual funds indicates that retail investors are tapping the stock market through mutual funds.

5. HIGHER RETURNS:
Mutual funds provide investors to earn high returns on their savings. There is high return-low risk combination as mutual funds have direct holding of equities and other assets.

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ADVANTAGES OF MUTUAL FUNDS:

The benefits on offer are many with good post-tax returns and reasonable safety being the hallmark that we normally associate with them. Some of the other major benefits of investing in them are: 1. Number of available options Mutual funds invest according to the underlying investment objective as specified at the time of launching a scheme. So, we have equity funds, debt funds, gilt funds and many others that cater to the different needs of the investor. The availability of these options makes them a good option. While equity funds can be as risky as the stock markets themselves, debt funds offer the kind of security that aimed at the time of making investments. Money market funds offer the liquidity that desired by big investors who wish to park surplus funds for very short-term periods. The only pertinent factor here is that the fund has to selected keeping the risk profile of the investor in mind because the products listed above have different risks associated with them. So, while equity funds are a good bet for a long term, they may not find favor with corporate or High Net worth Individuals (HNIs) who have short-term needs. 2. Diversification Investments spread across a wide cross-section of industries and sectors and so the risk is reduced. Diversification reduces the risk because not all stocks move in the same direction at the same time. One can achieve this diversification through a Mutual Fund with far less money than one can on his own. 3. Professional Management Mutual Funds employ the services of skilled professionals who have years of experience to back them up. They use intensive research techniques to analyze each investment option for the potential of returns along with their risk levels to come up with the figures for performance that determine the suitability of any potential investment. 4. Potential of Returns Returns in the mutual funds are generally better than any other option in any other avenue over a reasonable period. People can pick their investment horizon and stay put in the chosen fund for the duration. Equity funds can outperform most other investments over long periods by placing long-term calls on fundamentally good stocks. The debt funds too will outperform other options such as banks. Though they are affected by the interest rate risk in general, the returns generated are more as they pick securities with different duration that have different yields and so are able to increase the overall returns from the 6. Efficiency By pooling investors' monies together, mutual fund companies can take advantage of economies of scale. With large sums of money to invest, they often trade commission-free and have personal contacts at the brokerage firms.

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LIMITATION OF MUTUAL FUNDS:

Mutual funds have their drawbacks and may not be for everyone:

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 commissions or "loads" to compensate brokers, financial consultants, or financial planners. Even if you don't use a broker or other financial adviser, 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 70 percent 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 you reinvest the money you made.

4. Management risk: When you invest in a mutual fund, you depend on the fund's manager to make the right decisions regarding the fund's portfolio. If the manager does not perform as well as you 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.

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TYPES OF MUTUAL FUNDS:

Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial position, risk tolerance and return expectations etc. thus mutual funds has Variety of flavors, Being a collection of many stocks, an investors can go for picking a mutual fund might be easy. There are over hundreds of mutual funds scheme to choose from. It is easier to think of mutual funds in categories, mentioned below.

(A) Categorization by maturity period:

A mutual fund scheme can be classified into open-ended scheme or close-ended scheme depending on its maturity period.

Open-ended fund/scheme:
An open-ended fund or scheme is one that is available for subscription and repurchase on a continuous basis. These schemes do not have a fixed maturity period. Investors can conveniently buy and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis. The key feature of open-end schemes is liquidity.

Close-ended fund/scheme:
A close-ended fund or scheme has a stipulated maturity period eg five and seven years. The fund is open for subscription only during a specified period at the time of launch of the scheme. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where the units are listed. In order to provide an exit route to the investors, some close-ended funds give an option of selling back the units to the mutual fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor ie either repurchase facility or through listing on stock exchanges. These mutual funds schemes disclose NAV generally on weekly basis.

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(B.)Categorization by investment objective:

A scheme can also be classified as growth scheme, income scheme, or balanced scheme considering its investment objective. Such schemes may be open-ended or close-ended schemes as described earlier. Such schemes may be classified mainly as follows:

Growth/Equity oriented schemes

The aim of growth funds is to provide capital appreciation over the medium to long- term. Such schemes normally invest a major part of their corpus in equities. Such funds have comparatively high risks. These schemes provide different options to the investors like dividend option, capital appreciation, etc and the investors may choose an option depending on their preferences. The investors must indicate the option in the application form. The mutual funds also allow the investors to change the options at a later date. Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time.

Income/Debt oriented scheme

The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures, Government securities and money market instruments. Such funds are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets. However, opportunities of capital appreciation are also limited in such funds. The NAVs of such funds are affected because of change in interest rates in the country. If the interest rates fall, NAVs of such funds are likely to increase in the short run and vice versa. However, long term investors may not bother about these fluctuations.

Balanced fund
The aim of balanced funds is to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. These are appropriate for investors looking for moderate growth. They generally invest 40-60 per cent in equity and debt instruments. These funds are also affected because of fluctuations in share prices in the stock markets. However, NAVs of such funds are likely to be less volatile compared to pure equity funds.

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Hybrid Fund
Hybrid Fund refers to a mutual fund that invests in different types of assets. Its portfolio includes a mix of stocks and bonds and even money market investments. This provides a bigger diversification opportunity for investors than a typical equity fund does.

Money Market or Liquid fund

These funds are also income funds and their aim is to provide easy liquidity, preservation of capital and moderate income. These schemes invest exclusively in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money, government securities; etc Returns on these schemes fluctuate much less compared to other funds. These funds are appropriate for corporate and individual investors as a means to park their surplus funds for short periods.

Index funds
Index funds replicate the portfolio of a particular index such as the BSE Sensitive index, S&P NSE 50 index (Nifty), etc These schemes invest in the securities in the same weight age comprising of an index. NAVs of such schemes would rise or fall in accordance with the rise or fall in the index, though not exactly by the same percentage due to some factors known as "tracking error" in technical terms. Necessary disclosures in this regard are made in the offer document of the mutual fund scheme. There are also exchange traded index funds launched by the mutual funds which are traded on the stock exchanges.

Sector specific funds/schemes

These are the funds/schemes which invest in the securities of only those sectors or industries as specified in the offer documents. Eg Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc .The returns in these funds are dependent on the performance of the respective sectors/industries. While these funds may give higher returns, they are more risky compared to diversified funds. Investors need to keep a watch on the performance of those sectors/industries and must exit at an appropriate time. They may also seek advice of an expert.

Tax saving schemes

These schemes offer tax rebates to the investors under specific provisions of the Income Tax Act, 1961 as the Government offers tax incentives for investment in specified avenues. Eg Equity Linked Savings Schemes (ELSS). Pension schemes launched by the mutual funds also offer tax benefits. These schemes are growth oriented and invest pre-dominantly in equities. Their growth opportunities and risks associated are like any equity-oriented scheme.

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EQUITY SCHEME OF 6 MUTUAL FUNDS

PRIVATE BANK
HDFC BANK ICICI BANK UTI BANK

PUBLIC BANK
SBI BANK PRINCIPAL MF BANK OF BARODA

1.) STATE BANK OF INDIA MUTUAL FUND EQUITY SCHEME

SBI MAGNUM MULTICAP FUND:
Magnum Multi cap Fund would invest the monies in a diversified basket of equity & equity related instruments, debt and money market instruments. Investments in equity instruments would span the entire market capitalization spectrum covering large cap, mid cap and small cap stocks. Objectives: To provide investors with opportunities for long-term growth in capital along with the liquidity of an open-ended scheme through an active management of investments in a diversified basket of equity stocks spanning the entire market capitalization spectrum and in debt and money market instruments.

SBI BLUE CHIP FUND:

SBI Blue Chip Fund invests in stocks of blue-chip companies i.e. in stocks of companies with market capitalization equal to or more than the least market capitalized stock of BSE 100 Index. These companies have large business presence, good reputation and are possibly market leaders in their industries. The fund comprises of a well diversified portfolio of predominantly large cap companies, with steady growth potential opportunity. The investments are limited to stocks with market capitalization equal to or more than the least market capitalized stock of BSE 100 Index. Objectives: The objective of the scheme would be to provide investors with opportunities for long-term growth in capital through an active management of investments in a diversified basket of equity stocks of companies whose market capitalization is at least equal to or more than the least market capitalized stock of BSE 100 Index. 21

SBI MAGNUM MIDCAP FUND:

The fund invests in a basket of equity stocks of midcap companies. Midcap companies are those companies whose market capitalization at the time of investment is lower than the last stock in the S&P CNX Nifty Index less 20% (upper range) and above Rs. 200 crores. Objectives: To provide investors with opportunities for long-term growth in capital along with the liquidity of an open-ended scheme by investing predominantly in a well diversified basket of equity stocks of Midcap companies. Midcap companies are those companies whose market capitalization at the time of investment is lower than the last stock in the S&P CNX Nifty Index less 20% (upper range) and above Rs. 200 crores.

SBI MAGNUM EQUITY FUND:

The scheme seeks capital appreciation through investment in diversified portfolio of equities of high growth companies, along with liquidity of an open ended scheme. Objectives: To provide the investor Long-term capital appreciation by investing in high growth companies along with the liquidity of an open-ended scheme through investments primarily in equities and the balance in debt and money market instruments.

SBI INFRASTRUCTURE FUND - SERIES I

The fund invests in stocks of companies which are involved in infrastructural growth in Indian economy. The scheme will be managed as a thematic "multi-sector" fund and not as a diversified equity fund. The scheme will invest in companies broadly within the following areas/sectors of the economy namely Airport Banks, Financial Institutions & Term lending Institutions Cement & Cement Products Coal Construction Road & Railway initiatives Telecommunication Transportation The scheme has no sect oral or market capitalization bias and investments will be considered only in companies that are directly or indirectly involved in the infrastructure growth. Objectives: To provide investors with opportunities for long-term growth in capital through an active management of investments in a diversified basket of equity stocks of companies directly or indirectly involved in the infrastructure growth in the Indian economy and in debt & money market instruments.

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2.) BANK OF BARODA MUTUAL FUND EQUITY SCHEME

Baroda Pioneer PSU Equity Fund:
Baroda Pioneer PSU Equity Fund (BPSUQ) gives investors the option to invest in a PSU portfolio comprising of some of the biggest and best names in India. The scheme offer investors the opportunity to benefit from future growth in PSUs by creating a diversified portfolio to these companies without any sectors or market capitalization bias. The portfolio to also consist of IPOs / FPOs of PSU. The scheme aims to generate excess returns through stock selection rather than holding cash and timing the market.

Baroda Pioneer Infrastructure Fund:

Baroda Pioneer Infrastructure Fund is classical thematic fund that would predominantly invest in Equities & Equity Related Securities including derivatives issued by companies linked to Infrastructure sector in India. For the purpose of the scheme, "Infrastructure" is defined as sectors that are directly linked to the development and execution of Infrastructure in India. The scheme will endeavor to build a portfolio that consists only of "core" infrastructure companies.

Baroda Pioneer ELSS 96:

Baroda Pioneer ELSS is a typical Equity Linked Savings Schemes that helps you Save Taxes while providing the opportunity for the Long Term Growth of your investments. This scheme is an open-ended Equity Linked Savings Scheme, which offered tax benefit under Section 88 of the Income Tax Act, 1961 along with possibility for income and long-term capital growth. The scheme also provides Personal Accidental Death insurance cover.

Baroda Pioneer Balance Fund:

The scheme is targeted for long-term capital appreciation along with stability through a well balance portfolio comprising of equity and debt.

Baroda Pioneer Growth Fund:

Baroda Pioneer Growth Fund a well-diversified growth oriented fund investing in some of the top performing companies without sector or market-cap preference. The scheme is ideal for investors with a

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medium to long-term investment horizon thereby enabling investors to benefit from growth through capital appreciation.

3.) PRINCIPAL MUTUAL FUND EQUITY SCHEME:

1.) Principal Emerging Blue-chip Fund (An open ended Equity Scheme):
Investment objectives: The primary objective of the scheme is to achieve long-term capital appreciation by investing in equity and equity related instruments of Mid Cap and Small Cap companies.

2.) Principal Growth Fund (An open ended Equity Scheme):

Investment objectives: To achieve long term capital appreciation.

3.) Principal Index Fund (An open ended Index Scheme):

Investment objectives: To invest principally in securities that comprise S&P CNX Nifty (NSE) and subject to tracking errors endeavor to attain results commensurate with the Nifty.

4.) Principal Large Cap Fund (An open ended Equity Scheme):
Investment objectives: The Investment Objective of the scheme would be to provide capital appreciation and / or dividend distribution by predominantly investing in companies having a large market capitalization. For the purpose of this Fund, Large Cap Companies are defined as those having market capitalization greater than Rs. 750 crores as on the date of investment (or any such amount as may be specified by India Index Services Ltd.(IISL) from time to time) being the upper limit of market capitalization as a criteria for inclusion of a company in CNX Midcap 200 Index. However, should IISL come out with a definition of 'Large Cap companies', the same will be utilized.

5.) Principal Smart Equity Fund (An open-ended Equity Scheme):

Investment objectives: The primary objective of the scheme is to seek to generate long term capital appreciation with relatively lower volatility through systematic allocation of funds into equity; and in debt /money market instruments for defensive purposes. The Scheme will decide on allocation of funds into equity assets based on equity market Price Earnings Ratio (PE Ratio) levels. When the markets become expensive in terms of 'Price to Earnings' Ratio; the Scheme will reduce its allocation to equities and move assets into debt and/or money market instruments and vice versa.

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4.) HDFC BANK MUTUAL FUND EQUITY SCHEME:

1.) HDFC Equity Fund:
Investment objectives: The investment objective of the Scheme is to achieve capital appreciation.

2.) HDFC Growth Fund:

Investment objectives: The primary investment objective of the Scheme is to generate long term capital appreciation from a portfolio that is invested predominantly in equity and equity related instruments.

3.) HDFCInfrastructureFund:
Investment objectives: To seek long-term capital appreciation by investing predominantly in equity and equity related securities of companies engaged in or expected to benefit from the growth and development of infrastructure.

4.) HDFC Mid-Cap Opportunities Fund:

Investment objectives: To generate long-term capital appreciation from a portfolio that is substantially constituted of equity and equity related securities of Small and Mid-Cap companies.

5.) HDFC Premier Multi-Cap Fund:

Investment objectives: The primary objective of the Scheme is to generate capital appreciation in the long term through equity investments by investing in a diversified portfolio of Mid Cap and Large Cap `blue chip` companies.

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5.) ICICI BANK MUTUAL FUND EQUITY SCHEME:

1.) ICICI Prudential Focused Blue-chip Equity Fund:
ICICI Prudential Focused Blue-chip Equity Fund, an open-ended equity scheme, aims to maximize longterm total returns, from a focused and optimally diversified portfolio that is invested in equity and equity related securities of about 20 companies belonging to the large cap domain. This strategy has the potential to generate positive returns from being overweight on certain high conviction stock picks.

2.) ICICI Prudential Infrastructure Fund:

ICICI Prudential Infrastructure Fund is an open-ended equity fund, focused on capturing the opportunity presented by the long-term growth and development potential of the Indian Infrastructure Sector. The Fund focuses its investments on the core infrastructure sector and allied sectors that directly feed off its growth.

3.) ICICI Prudential Technology Fund:

ICICI Prudential Technology Fund is an open-ended equity fund that invests in knowledge sectors like IT and IT Enabled Services, Media, Telecommunications and others. Technology has slowly but surely started taking control of our daily lives. From keeping in touch with our friends and family, to paying our bills, to providing us with an infinite array of information at our fingertips, the future lies within it.

4.) ICICI Prudential Index Fund:

ICICI Prudential Index fund , an open-ended index linked growth scheme offers a passive choice to investors, who prefer that their portfolio closely maps the market index, the CNX S&P Nifty index of 50 stocks.

5.) ICICI Prudential FMCG Fund:

ICICI Prudential FMCG Fund is an open-ended equity fund that invests in companies, which will benefit from increasing consumption in the country. It is a diversified sector fund that holds scrips across subsectors like food, retail distribution, apparel and consumables.

26

6.) UTI BANK MUTUAL FUND EQUITY SCHEME:

1.) UTI - Equity Fund:
UTI Equity Fund is open-ended equity scheme with an objective of investing at least 80% of its funds in equity and equity related instrument with medium to high risk profile and up to 20% in debt and money market instruments with low to medium risk profile.

2.) UTI - Mid Cap Fund:

UTI Mid Cap Fund is an open-ended equity fund with the objective to provide 'Capital appreciation' by investing primarily in mid cap stocks.

3.) UTI - Infrastructure Fund:

To provide investment returns that, before expenses, closely correspond to the performance and yield of the basket of securities underlying the S & P CNX Nifty Index.

4.) UTI - Master Index Fund:

UTI MIF is an open-ended passive fund with the primary investment objective to invest in securities of companies comprising the BSE sensex in the same weight age as these companies have in BSE sensex. The fund strives to minimize performance difference with the sensex by keeping the tracking error to the minimum.

5.) UTI - Contra Fund:

An open ended equity scheme with the objective to provide long term capital appreciation/dividend distribution through investments in listed equities & equity related instrument. The fund offers an opportunity to benefit from the impact of non- rational investors' behavior by focusing on stocks that are currently undervalued because of emotional & behavioral patterns present in the stock market.

27

FINANCIAL AND MEASUREMENT:

STATISTICAL

TOOLS

FOR

Here the researcher has used following techniques to study the performance of Mutual Funds which are as under:

Standard Deviation:
A measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard deviation is calculated as the square root of variance. In finance, standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility. Standard deviation is also known as historical volatility and is used by investors as a gauge for the amount of expected volatility. Standard deviation is a statistical measurement that sheds light on historical volatility. For example, a volatile stock will have a high standard deviation while the deviation of a stable blue chip stock will be lower. A large dispersion tells us how much the return on the fund is deviating from the expected normal returns.

Beta:
A relative measure of the sensitivity return on security is to change in the broad market index return. Beta measure the systematic risk, it shows how prices of securities respond to the market forces. Beta is calculated by relating the return on a security with return for the market. Market will have 1.0, if the beta is greater than 1 than the stock is said to be very riskier than market risk, beta less than 1 than the stock is said to be not that much riskier as compare to the market risk. Beta involved market risk, and market risk involved political risk, inflation risk, and interest rate risk.

R Square:
R Square measures the funds correlations to the market R Square are between the 0 and 1. A statistical measure that represents the percentage of a fund or security's movements that can be explained by movements in a benchmark index. For fixed-income securities, the benchmark is the T-bill. For equities, the benchmark is the S&P 500. R-squared values range from 0 to 100. An R-squared of 100 means that all movements of a security are completely explained by movements in the index. A high R-squared (between 85 and 100) indicates the fund's performance patterns have been in line with the index. A fund with a low R-squared (70 or less) doesn't act much like the index. A higher R-squared value will indicate a more useful beta figure. For example, if a fund has an R-squared value of close to 100 but has a beta below 1, it is most likely offering higher risk-adjusted returns. A low R-squared means you should ignore the beta.

28

Sharpe Ratio:
A Sharpe ratio indicates the risk premium of portfolio relative to the total amount of risk in the portfolio. Sharpe ratio summarizes. The risk and return of a portfolio in a single measure that categories the performance of funds on the risk adjusted basis. The larger the Sharpe ratio, the portfolio is over performing the market and vice versa. A ratio developed by Nobel laureate William F. Sharpe to measure risk-adjusted performance. The Sharpe ratio is calculated by subtracting the risk-free rate - such as that of the 10-year U.S. Treasury bond - from the rate of return for a portfolio and dividing the result by the standard deviation of the portfolio returns. The Sharpe ratio tells us whether a portfolio's returns are due to smart investment decisions or a result of excess risk. This measurement is very useful because although one portfolio or fund can reap higher returns than its peers, it is only a good investment if those higher returns do not come with too much additional risk. The greater a portfolio's Sharpe ratio, the better its risk-adjusted performance has been. A negative Sharpe ratio indicates that a risk-less asset would perform better than the security being analyzed.

NAV:
NAV means the market value of the assets minus the liabilities on the day of valuation. In the other words, it is the amount which the shareholder will collectively get if the fund is dissolved or liquidated. NAV: Assets + Accrued Income Liabilities Accrued Liabilities _____________________________________________ Number of Share or Units Outstanding

Advantage of NAV:
1. It offers capital guarantee from day one. In the volatile conditions of the market that we saw in the past, the worry of the Investors was not the Return ON Investments but Return OF Investments. So, with such products, you are assured that you will get your principal back. 2. You are in advance, assured of whatever growth happens in your portfolio, in terms of NAV. For risk adverse investors, it is a major source of comfort as they know that their principal is safe and any growth in NAV is locked in. 3. One is taking advantage of equity exposure in the beginning and over the time it is shifting to debt which is in line with the requirements, to an extent. But here the change will be much faster to debt. 4. It can be treated as a debt oriented product which will give some returns with an equity kicker in the earlier years. It is like a hybrid product like MIP, with the difference that the equity portion comes down over time. 29

Chapter 2

OBJECTIVE AND RESEARCH METHODOLOGY OF THE STUDY

OBJECTIVES OF THE STUDY:

To Study and understand the concept, Functioning and operations of mutual fund. To study and understand the regulations of Equity schemes of mutual fund. To study the various schemes offered in Mutual fund and in depth of Equity schemes of mutual fund. To Study and analyze the performance of Equity schemes. To compare and explore the recent developments in Equity schemes offered by banks in India.

SCOPE OF THE STUDY:

After the study and analysis of equity schemes of mutual funds, the investment decisions (risk and return) related to equity schemes can be done. It will also help to understand the behavior of equity schemes of mutual funds regarding different companies. Performance analysis of equity schemes helps to form Trend so it can be said that it leads to trend analysis.

LIMITATION OF THE STUDY:

The major limitation of the project is duration of the project as time constraint is there due to short span of time. All the data is not available so due to that data constraint it is difficult to analyze all the schemes. Data considered mainly consist of secondary data as mainly data is collected from fact sheets of particular mutual fund companies.

30

Research Methodology:
Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. Researcher pursues various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. It is necessary to know not only the research methods and techniques but also the methodology. Researcher not only needs to know how to develop certain indices or tests, how to calculate mean, standard deviation and beta. Research method part of research methodology, research methodology start with title of the research problem and researcher set the objectives of the research, which helpful for society, and other researcher for further research. After objectives need to review of literatures means idea generation and inspired to do the research. Research methodology included sample design. Sample design shows types of sampling method, sample size, sampling period.

TWO TYPES OF DATA:

1. Primary Data:
Primary sources of data collection or primary data are those datas which are collected directly from the respondents. They are collected for the first time from the sources concerned and are popularly said as the first-hand data collection. They are collected directly from the sources through observation, questionnaires, and schedules or through personal interview. And these are the tools which are used particularly in surveys and descriptive type of research. Data Collection: Data was collected through questionnaires, research, files and documents of organization, interview & observation.

31

Questionnaires: The data collected through questionnaire becomes primary data, which is used to test hypothesis. The structured questionnaire consisted of close-ended objective question.

2. Secondary Data:
Secondary data on the organization was collected from various secondary sources like records, files,

journal & documents of the organization. In research, secondary data is data collected and possibly processed by people other than the researcher in question. Common sources of secondary data for social science include census, large surveys and organizational records. But according to research project, the data has been collected only through secondary basis i.e. factsheets, statistical tables relating to mutual fund companies, reports etc through internet.

Sample and sampling design:

Bank is considered for data collection and interpretation. Sample of 6 banks is taken .The sample of study comprises of 6 banks, 3 public sector bank and 3 private sector banks. Public sector banks include state bank of India, Punjab national bank, bank of Baroda. Private sector banks include ICICI bank, HDFC bank, UTI bank (AXIS Bank).For study and analysis purpose 5 different scheme of equity fund of each bank are taken.

32

Chapter 3

DATA ANALYSIS AND INTERPRETATION:

HDFC MUTUAL FUNDS EQUITY SCHEME: DATA ANALYSIS:
SCHEMES NATU RE OF OBJECTIVE SCHE ME Standard deviation Beta Sharpe ratio NAV(R s.) per unit as on 1/3/201 1 268.955 0 NAV(Rs.) per unit as on 1/3/2012

HDFC equity fundGrowth Option HDFC growth fundGrowth Option

Openended Growth Schem e Openended Growth Schem e

To achieve capital Appreciation

8.10%

0.960 0

0.27

262.2080

HDFC premier multi-cap fund

Openended Growth Schem e

HDFC MidCap opportunitie s fund

Openended Equity Schem e

To generate long term capital appreciation from a portfolio that is invested predominantly in equity and equity related instruments To generate capital appreciation in the long term through equity investments by investing in a diversified portfolio of Mid Cap & Large Cap blue chip Companies. To generate long-term capital appreciation from a portfolio that is substantially constituted of equity

7.10%

0.888 0

0.25

84.0670

85.6080

7.90%

0.933 0

0.25

27.5850

27.4190

7.10%

0.794 0

0.34

14.1920

16.0520

33

and equity related securities of Small and Mid-Cap companies

HDFC Infrastructur e Fund

Openended Equity Schem e

To seek long-term capital 9.50% appreciation by investing predominantly in equity and equity related securities of companies engaged in or expected to benefit from growth and development of infrastructure

1.104 0

0.18

11.2530

10.3690

1.) HDFC Equity Fund ( growth option)

SIP Investment Since inception 15 year SIP SIP SIP Investments Since5 year 10 year 5 Year 3 Year 1 Year 10 year SIP 5 year SIP 3 year SIP 1year SIP

Total Amount Invested (` 000) Mkt Value as on Mar 30, 2012 (` 000) Returns (Annualized)* (%) Benchmark Returns (Annualized) (%) # Addl. Benchmark Ret. (Annualized) (%) ##

207.00 2,794.36 26.07 13.48 12.58

180.00 1,814.86 27.23 14.49 13.47

120.00 60.00 36.00 434.39 82.99 41.04 24.31 12.95 8.73 14.77 4.95 2.15 14.63 5.43 3.06

12.00 12.16 2.46 0.98 0.83

2.) HDFC growth Fund (growth option)

SIP Investment Since inception SIP 10 year SIP 5 year SIP 3 year SIP 1year SIP

Total Amount Invested (` 000) 139.00 Mkt Value as on Mar 30, 2012 (` 000) 599.65 Returns (Annualised)* (%) 23.40 Benchmark Returns (Annualised) (%) # 15.27 Addl. Benchmark Ret. (Annualised) (%) ## 14.82

120.00 394.84 22.54 15.02 14.63

60.00 79.49 11.21 4.81 5.43

36.00 41.54 9.54 2.16 3.06

12.00 12.37 5.86 -1.45 0.83

3.) HDFC premier multi-cap fund(growth option) 4.)

SIP Investment since inception SIP 5 year SIP 3 year SIP 1 year SIP

Total Amount Invested (` 000) Mkt Value as on Mar 30, 2012 (` 000) Returns (Annualized)* (%) Benchmark Returns (Annualized) (%) # Addl. Benchmark Ret. (Annualized) (%) ##

84.00 125.25 11.23 7.34 8.33

60.00 77.99 10.45 4.95 5.43

36.00 40.54 7.89 2.15 3.06

12.000 12.12 1.91 0.98 0.83

4.) HDFC Mid-Cap opportunities fund (growth option)

34

SIP Investment

since inception SIP

3 year SIP

1 year SIP

Total Amount Invested (` 000) Mkt Value as on Mar 30, 2012 (` 000) Returns (Annualized)* (%) Benchmark Returns (Annualized) (%) # Addl. Benchmark Ret. (Annualized) (%) ##

58.00 87.91 17.30 8.62 5.35

36.00 46.51 17.40 6.34 3.06

12.00 12.85 13.50 7.81 0.83

5.) HDFC infrastructure fund (growth option)

SIP Investment since inception SIP 3 year SIP 1 year SIP

Total Amount Invested (` 000) Mkt Value as on Mar 30, 2012 (` 000) Returns (Annualized)* (%) Benchmark Returns (Annualized) (%) # Addl. Benchmark Ret. (Annualized)(%) ##

49.00 55.78 6.31 6.76 6.97

36.00 36.32 0.58 2.15 3.06

12.00 12.08 1.21 0.98 0.83

INTERPRETATION:
HDFC Equity Fund (growth option):
As NAV is calculated on the basis of closing prices of portfolio securities since NAV has declined by -6.74 so it shows bearish behavior and there is no demand of that mutual fund scheme with respect to market. Standard Deviation shows the volatility of portfolios return. It has upside as well as downside. The returns in this scheme are more as compared to target benchmark return and standard deviation is 8.10% so this scheme is performing well up to standard. As the beta of this scheme is 0.96 which is very close to one, it shows the equal volatility of scrip with respect to market. The Sharpe ratio tells us whether a portfolio's returns are due to smart investment decisions or a result of excess risk. As the Sharpe ratio of this scheme is 0.27 the positive Sharpe ratio, the better its risk-adjusted performance has been evaluated.

HDFC growth Fund (growth option):

As NAV is calculated on the basis of closing prices of portfolio securities since NAV has increased by 1.541 so it shows bullish behavior and there is a demand of that mutual fund scheme with respect to market.

35

Standard Deviation shows the volatility of portfolios return. It has upside as well as downside. The returns in this scheme are more as compared to target benchmark return and standard deviation is 7.10% so this scheme is performing well up to standard. As the beta of this scheme is 0.88 which is lower than one, it shows the low volatility of scrip with respect to market. Sharpe ratio gives a single value to be used for the performance ranking of various funds or portfolios. As the Sharpe ratio of this scheme is 0.25 the positive Sharpe ratio, the better its riskadjustedperformancehasbeenevaluated.

HDFC premier multi-cap fund (growth option):

As NAV is calculated on the basis of closing prices of portfolio securities since NAV has declined by -0.166 so it shows bearish behavior and there is no demand of that mutual fund scheme with respect to market.

Standard Deviation shows the volatility of portfolios return. It has upside as well as downside. The returns in this scheme are more as compared to target benchmark return and standard deviation is 7.90% so this scheme is performing well up to standard. As the beta of this scheme is 0.93 which is very close to one, it shows the equal volatility of scrip with respect to market. Sharpe ratio gives a single value to be used for the performance ranking of various funds or portfolios. As the Sharpe ratio of this scheme is 0.25 the positive Sharpe ratio, the better its riskadjusted performance has been evaluated.

HDFC Mid-Cap opportunities fund (growth option):

As NAV is calculated on the basis of closing prices of portfolio securities since NAV has increased by 1.86 so it shows bullish behavior and there is a demand of that mutual fund scheme with respect to market.

As the NAV on 1/3/2011 is 14.19 and NAV on 1/3/2012 is 16.05 so the NAV is increasing so this scheme is performing well, the investor will invest in this scheme and will get benefits.

Standard Deviation shows the volatility of portfolios return. It has upside as well as downside. The returns in this scheme are more as compared to target benchmark return and standard deviation is 7.10% so this scheme is performing well up to standard. As the beta of this scheme is 0.7940 which is lower than one, it shows the low volatility of scrip with respect to market.

36

Sharpe ratio gives a single value to be used for the performance ranking of various funds or portfolios. As the Sharpe ratio of this scheme is 0.34 the positive Sharpe ratio, the better its riskadjusted performance has been evaluated.

HDFC infrastructure fund (growth option):

As NAV is calculated on the basis of closing prices of portfolio securities since NAV has declined by -0.884 so it shows bearish behavior and there is no demand of that mutual fund scheme with respect to market . As the NAV on 1/3/2011 is 11.25 and NAV on 1/3/2012 is 10.36 so the NAV is decreasing so this scheme is not performing well, the investor will not invest in this scheme and will not get benefits.

Standard Deviation shows the volatility of portfolios return. It has upside as well as downside. The returns in this scheme are less as compared to target benchmark return and standard deviation is 9.50% so this scheme is not performing well up to standard. As the beta of this scheme is 1.104 which is higher than one, it shows the high volatility of scrip with respect to market. Sharpe ratio gives a single value to be used for the performance ranking of various funds or portfolios. As the Sharpe ratio of this scheme is 0.18 the positive Sharpe ratio, the better its riskadjusted performance has been evaluated.

ICICI MUTUAL FUNDS EQUITY SCHEME

SCHE MES NATURE OBJECTIVE OF SCHEME Standar d deviatio n Bet a Shar pe ratio R - Portfoli squar o ed Turnov er ratio 0.97 0.61 NAV( Rs.) per unit as on 1/3/201 1 16.32 NAV( Rs.) per unit as on 1/3/201 2 17.01

ICICI Prudentia l Focused Blue-chip Equity FundGrowth Option

Openended equity Scheme

Aims to maximize long-term total returns, from a focused and optimally diversified portfolio that is invested in equity and equity related securities of about 20 companies belonging to the large cap domain. This strategy has the potential to generate positive returns from being overweight on

22.90%

0.84

0.85

37

certain conviction picks. ICICI Prudentia l Infrastruc ture Fund: Growth Option Openended Equity Scheme

high stock

Focused on capturing the opportunity presented by the longterm growth and development potential of the Indian Infrastructure Sector. The Fund focuses its investments on the core infrastructure sector and allied sectors that directly feed off its growth.

24.19%

0.72

0.25

0.93

0.44

28.59

26.2

ICICI Prudentia l Technolo gy Fund

Openended Equity Scheme

To invests in knowledge sectors like IT and IT Enabled Services, Media, Telecommunications and others. Technology has slowly but surely started taking control of our daily lives. From keeping in touch with our friends and family, to paying our bills, to providing us with an infinite array of information at our fingertips, the future lies within it. To offers a passive choice to investors, who prefer that their portfolio closely maps the market index, the CNX S&P Nifty index of 50 stocks. To invests in companies, which will benefit from increasing

24.56%

0.95

1.30

0.93

0.48

18.48

18.48

ICICI Prudentia l Index Fund

open-ended index linked growth scheme

26.47%

0.99

0.50

1.00

0.19

51.261

49.945 1

ICICI Prudentia l FMCG Fund

open-ended equity scheme

18.82%

0.92

1.27

0.77

0.27

62.27

78.95

38

consumption in the country. It is a diversified sector fund that holds scrips across sub-sectors like food, retail,distribution,appa rel and consumables.

ICICI Prudential Focused Blue-chip Equity Fund- Growth Option: Particulars 31/3/2011 to 31/3/2012 Absolute return (%) Scheme -3.66 S&P CNX Nifty -9.23

Since inception CAGR (%) 13.51 1.78

ICICI Prudential Infrastructure Fund-Growth Option Particulars 31/3/2011 to 31/3/2012 Absolute return (%) Scheme -15.39 Benchmark -18.45

Since inception CAGR (%) 15.06 5.71

ICICI Prudential Technology Fund Particulars Scheme Benchmark 31/3/2011 to 31/3/2012 Absolute return (%) -2.52 -7.12 Since inception CAGR (%) 5.25 -1.55

ICICI Prudential FMCG Fund Particulars Scheme Benchmark 31/3/2011 to 31/3/2012 Absolute return (%) 30.98 24.35 Since inception CAGR (%) 17.91 10.30

INTERPRETATION:
ICICI Prudential Focused Blue-chip Equity Fund- Growth Option: 39

As NAV is calculated on the basis of closing prices of portfolio securities since NAV has increased by 0.69 so it shows bullish behavior and there is a demand of that mutual fund scheme with respect to market. Standard Deviation shows the volatility of portfolios return. It has upside as well as downside. Returns As the beta of this scheme is 0.84 which is lower than one, it shows the low volatility of scrip with respect to market. The Sharpe ratio tells us whether a portfolio's returns are due to smart investment decisions or a result of excess risk. As the Sharpe ratio of this scheme is 0.85 the positive Sharpe ratio, the better its risk-adjusted performance has been.

As the R squared of this scheme is 0.97 and has a beta of 0.84, it is most likely offering higher risk-adjusted returns?

ICICI Prudential Infrastructure Fund-Growth Option As NAV is calculated on the basis of closing prices of portfolio securities since NAV has declined by -2.39 so it shows bearish behavior and there is no demand of that mutual fund scheme with respect to market. Standard Deviation shows the volatility of portfolios return. It has upside as well as downside. Returns in this scheme is more as compared to target benchmark return and standard deviation is 24.19% so this scheme is performing well up to standard. As the beta of this scheme is 0.72 which is lower than one, it shows the low volatility of scrip with respect to market. As the R squared of this scheme is 0.93 and has a beta of 0.72, it is most likely offering higher risk-adjusted returns.

ICICI Prudential Technology Fund As NAV is calculated on the basis of closing prices of portfolio securities since NAV is neither declined nor increased so it shows constant behavior with respect to market.

Standard Deviation shows the volatility of portfolios return. It has upside as well as downside. Returns in this scheme is more as compared to target benchmark return and standard deviation is 24.56% so this scheme is performing well up to standard. 40

As the beta of this scheme is 0.95 which is very close to one, it shows the equal volatility of scrip with respect to market. As the R squared of this scheme is 0.93 and has a beta of 0.95, it is most likely offering higher risk-adjusted returns.

ICICI Prudential Index Fund As NAV is calculated on the basis of closing prices of portfolio securities since NAV has declined by -1.32 so it shows bearish behavior and there is no demand of that mutual fund scheme with respect to market. As the beta of this scheme is 0.99 which is very close to one, it shows the equal volatility of scrip with respect to market. As the R squared of this scheme is 1.00 and has a beta of 0.99, it is most likely offering higher risk-adjusted returns.

ICICI Prudential FMCG Fund As NAV is calculated on the basis of closing prices of portfolio securities since NAV has increased by 16.7 so it shows bullish behavior and there is a demand of that mutual fund scheme with respect to market. Standard Deviation shows the volatility of portfolios return. It has upside as well as downside. Returns in this scheme is more as compared to target benchmark return and standard deviation is 18.82% so this scheme is performing well up to standard. As the beta of this scheme is 0.92 which is very close to one, it shows the equal volatility of scrip with respect to market. As the R squared of this scheme is 0.77 and has a beta of 0.92, it is most likely offering lower risk-adjusted returns. A low R-squared means you should ignore the beta.

41

UTI MUTUAL FUNDS EQUITY SCHEME:

DATA ANALYSIS:

SCHEMES

NATURE OF SCHEME
Open-ended equity Scheme

OBJECTIVE

Standard deviation

Beta

NAV(Rs. ) per unit as on 1/3/2011

52.73

NAV(R s.) per unit as on 1/3/2012

54.36

UTI - Equity Fund -Growth retail

This Scheme primarily aims at securing for the unit holders capital appreciation by investing the funds of the scheme in equity shares and convertible and non-convertible bonds/ Debentures of companies with good growth prospects and money market instruments. Investment objective is "capital appreciation" by investing primarily in mid cap stocks. The investment objective of the Scheme is to provide income distribution and / or medium to long term capital appreciation by investing predominantly in equity / equity related instruments in the companies engaged either directly or indirectly in the infrastructure growth of the Indian economy. However, there is no assurance that the investment objective of the scheme will be achieved. The principle investment objective of the scheme is to invest in securities of companies comprising the SENSEX and endeavor to achieve return equivalent to SENSEX by passive investment. The scheme will be managed by replicating the index in the weight age of the SENSEX with the intention of minimizing the performance differences between the scheme and the SENSEX in capital terms, subject to market liquidity, costs of trading, management expenses and other factors which may cause tracking error..

15.9%

0.79

UTI - Mid Cap Fund Growth retail

Open-ended Equity Scheme Open-ended Equity Scheme

16.1%

0.81

29.3

29.58

20.1%

0.97

31.49

28.19

UTI Infrastructure Fund Growth retail

UTI - Master Index Fundgrowth retail

open-ended index scheme

20.4%

0.99

57.1047

54.718

42

UTI- Contra Fund-growth retail

open-ended equity scheme

The fund aims to provide long-term capital appreciation/dividend distribution through investments in listed Indian equities and equity related instruments. The Fund's investment policies are based on insights from behavioral finance. The fund offers an opportunity to benefit from the impact of nonrational investors' behavior by focusing on stocks that are currently undervalued because of emotional and behavioral patterns present in the stock market.

18.9%

0.94

12.88

12.08

UTI - Equity Fund -Growth retail

Fund Performance Vs Benchmark Fund Performance Vs Benchmark as on 31/12/2011 Returns NAV BSE 100 (%) (%) 31/12/2008 31/12/2009 31/12/2009 31/12/2010 31/12/2010 31/12/2011 Since inception as on 31/12/2011 (CAGR) 85.17 20.50 -19.09 85.04 15.66 -25.73 Growth of `10000 NAV BSE 100 (Rs) (Rs) 18,517 12,050 8,091 18,504 11,566 7,427

S&P Nifty (%) 75.76 17.95 -24.62

S&P Nifty (Rs) 17,576 11,795 7,538

10.61

8.80

8.39

72,420

52,410

48,634

UTI Mid-cap Fund -Growth retail

Fund Performance Vs Benchmark Fund Performance Vs Benchmark as on 31/12/2011 Returns NAV CNX Midcap (%) (%) 31/12/2008 31/12/2009 31/12/2009 31/12/2010 31/12/2010 31/12/2011 Since inception as on 31/12/2011 (CAGR) 110.69 18.94 - 23.92 98.97 19.16 -31.00 Growth of `10000 S&P Nifty NAV CNX Midcap (%) (Rs) (Rs) 75.76 17.95 -24.62 21,069 11,894 7,608 19,897 11,916 6,900

S&P Nifty (Rs) 17,57 6 11,795 7,538

14.22

13.74

12.58

27,975

27,072

25,012

UTI Infrastructure Fund -Growth retail

Fund Performance Vs Benchmark Fund Performance Vs Benchmark as on 31/12/2011 Returns NAV BSE 100 (%) (%) Growth of `10000 NAV BSE 100 (Rs) (Rs)

S&P Nifty (%)

S&P Nifty (Rs)

43

31/12/2008 31/12/2009 31/12/2009 31/12/2010 31/12/2010 31/12/2011 Since inception as on 31/12/2011 (CAGR)

65.92 0.87 -36.49

85.04 15.66 -25.73

75.76 17.95 -24.62

16,592 10,087 6,351

18,504 11,566 7,427

17,576 11,795 7,538

12.55

12.94

12.58

24,965

25,643

25,012

UTI - Master Index Fund- growth retail

Fund Performance Vs Benchmark Fund Performance Vs Benchmark as on 31/12/2011 Returns NAV BSE Sensex Nifty (%) (%) (%) 31/12/2008 31/12/2009 80.00 81.03 17.43 -24.64 12.28 75.76 17.95 -24.62 12.50 Growth of `10000 NAV BSE Sensex (Rs) (Rs) 18,000 11,795 7,578 48155 18,103 11,743 7,536 47839

Nifty (Rs) 17,576 11,795 7,538 49096

31/12/2009 31/12/2010 1 7.95 31/12/2010 31/12/2011 -24.22 Since inception as on 31/12/2011 (CAGR) 12.34

UTI- Contra Fund-growth retail

Fund Performance Vs Benchmark Fund Performance Vs Benchmark as on 31/12/2011 Returns NAV BSE 200 (%) (%)

S&P Nifty (%)

Growth of `10000 NAV BSE 200 (Rs) (Rs)

S&P Nifty (Rs)

31/12/2008 31/12/2009 31/12/2009 31/12/2010 31/12/2010 31/12/2011 Since inception as on 31/12/2011 (CAGR)

74.33 9.11 -32.26

88.51 16.22 -26.95

75.76 17.95 -24.62

17,433 10,911 6,774

18,851 11,622 7,305

17,576 11,795 7,538

0.24

5.50

6.35

10,140

13,63 1

14,275

INTERPRETATION:
UTI - Equity Fund -Growth retail As NAV is calculated on the basis of closing prices of portfolio securities since NAV has increased by 1.63 so it shows bullish behavior and there is a demand of that mutual fund scheme with respect to market.

44

Standard Deviation shows the volatility of portfolios return. It has upside as well as downside. The returns in this scheme are more as compared to target benchmark return and standard deviation is 15.9% so this scheme is performing well up to standard. As the beta of this scheme is 0.79 which is lower than one, it shows the low volatility of scrip with respect to market.

UTI Mid-cap Fund -Growth retail As NAV is calculated on the basis of closing prices of portfolio securities since NAV has increased by 0.28 so it shows bullish behavior and there is a demand of that mutual fund scheme with respect to market. Standard Deviation shows the volatility of portfolios return. It has upside as well as downside. The returns in this scheme are more as compared to target benchmark return and standard deviation is 16.1% so this scheme is performing well up to standard. As the beta of this scheme is 0.81 which is lower than one, it shows the low volatility of scrip with respect to market.

UTI Infrastructure Fund -Growth retail As NAV is calculated on the basis of closing prices of portfolio securities since NAV has declined by -3.3 so it shows bearish behavior and there is no demand of that mutual fund scheme with respect to market. Standard Deviation shows the volatility of portfolios return. It has upside as well as downside. The returns in this scheme are more as compared to target benchmark return and standard deviation is 20.1% so this scheme is performing well up to standard. As the beta of this scheme is 0.97 which is very close to one, it shows the equal volatility of scrip with respect to market.

UTI - Master Index Fund- growth retail As NAV is calculated on the basis of closing prices of portfolio securities since NAV has declined by -2.4 so it shows bearish behavior and there is no demand of that mutual fund scheme with respect to market. Standard Deviation shows the volatility of portfolios return. It has upside as well as downside. The returns in this scheme are more as compared to target benchmark return and standard deviation is 20.4% so this scheme is performing well up to standard. As the beta of this scheme is 0.99 which is very close to one, it shows the equal volatility of scrip with respect to market. UTI- Contra Fund-growth retail

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As NAV is calculated on the basis of closing prices of portfolio securities since NAV has declined by -0.8 so it shows bearish behavior and there is no demand of that mutual fund scheme with respect to market. Standard Deviation shows the volatility of portfolios return. It has upside as well as downside. The returns in this scheme are more as compared to target benchmark return and standard deviation is 18.9% so this scheme is performing well up to standard. As the beta of this scheme is 0.94 which is very close to one, it shows the equal volatility of scrip with respect to market.

STATE BANK OF INDIA MUTUAL FUND EQUITY SCHEME

DATA ANALYSIS:
SCHEME S NATU RE OF OBJECTIVE SCHE MES Stand ard Devia tion Bet a RSqu ared Shar pe Ratio Total Expe nse Ratio NAV (Rs.) per unit as on 1/3/2 011 4 2 NAV( Rs.) per unit as on 1/3/2 012 42.43

Magnum Equity FundGrowth option

An Open ended Equity Scheme

To provide the investor long- 25.64 term capital % appreciation by investing in high growth companies along with the liquidity of an open-ended scheme through investments primarily in equities and the balance in debt and money market instruments To provide investors with 27.61 opportunities for % long-term growth in capital through an active management of investments in a diversified basket of equity stocks of companies whose market capitalization is 46

0.90 0.96

0.83

2.24 %

SBI blue chip fund -Growth option

An Openended Growth Scheme

0.95 0.98

0.63

2.16 %

13.83

13.72

SBI magnum multi-cap fund

An Openended Growth Scheme

at least equal to or more than the least market capitalized stock of BSE 100 Index. To provide investors with 25.86 opportunities for % long-term growth in capital along with the liquidity of an open-ended scheme through an active management of investments in a diversified basket of equity stocks spanning the entire market capitalization spectrum and in debt and money market instruments. 36.74 To provide investors with % opportunities for long-term growth in capital along with the liquidity of an open-ended scheme by investing predominantly in a well diversified basket of equity stocks of Midcap companies. Midcap companies are those companies whose market capitalization at the time of investment is lower than the last stock in the S&P CNX Nifty Index less 20% (upper range) and above ` 200 crores. To provide investors with 29.17 opportunities for % long-term growth in capital through an active management of investments in a diversified basket of equity stocks of companies directly or indirectly involved in the infrastructure growth in 47

0.88 0.98

0.54

2.30 %

16.91

16.07

1.09 0.89

0.72

SBI magnum mid-cap fundGrowth option

An Openended Growth Scheme

2.36 %

21.07

21.63

SBI infrastruct ure fundGrowth option

An Openended Equity Fund

0.98 0.93

0.33

2.15 %

9.01

the Indian economy and in debt & money market instruments.

Magnum Equity Fund- Growth option PERFORMANCE REPORT & PORTFOLIO ANALYSIS : 1 year Fund Benchmark 9.70% 5.69% 3 years 2.86% -0.89% 5 years 14.75% 11.29% Since Inception 15.28% 15.49%

SBI blue chip fund- Growth option PERFORMANCE REPORT & PORTFOLIO ANALYSIS : 1 year 0.15% 5.69% 3 years -1.36% -0.89% 5 years 5.72% 11.29% Since Inception 5.93% 11.90%

Fund Benchmark

SBI magnum multi-cap fund- Growth option PERFORMANCE REPORT & PORTFOLIO ANALYSIS : 1 year 3 years 5 years Since Inception Fund -1.90% -5.34% 5.82% 9.64% Benchmark 5.69% -0.89% 11.29% 15.07%

SBI magnum mid-cap fund- Growth option PERFORMANCE REPORT & PORTFOLIO ANALYSIS : 1 year 3 years 5 years Since Inception Fund -1.49% -11.31% 3.68% 12.84% Benchmark 2.81% 0.69% 10.88% 17.04%

SBI infrastructure fund- Growth option PERFORMANCE REPORT & PORTFOLIO ANALYSIS : 1 year 3 years 5 years Since Inception Fund -10.65% -11.38% N.A. -3.56% Benchmark 5.69% -0.89% N.A. 5.01%
48

INTERPRETATION:
Magnum Equity Fund- Growth option
As NAV is calculated on the basis of closing prices of portfolio securities since NAV has increased by 0.43 so it shows bullish behavior and there is a demand of that mutual fund scheme with respect to market. Standard Deviation shows the volatility of portfolios return. It has upside as well as downside. The returns in this scheme are more as compared to target benchmark return and standard deviation is 25.64% so this scheme is performing well up to standard. As the beta of this scheme is 0.90 which is lower than one, it shows the low volatility of scrip with respect to market. As the R squared of this scheme is 0.96 and has a beta of 0.90, it is most likely offering higher risk-adjusted returns. Sharpe ratio gives a single value to be used for the performance ranking of various funds or portfolios. As the Sharpe ratio of this scheme is 0.83 the positive Sharpe ratio, the better its riskadjusted performance has been evaluated.

SBI blue chip fund- Growth option

As NAV is calculated on the basis of closing prices of portfolio securities since NAV has declined by -0.11 so it shows bearish behavior and there is no demand of that mutual fund scheme with respect to market. Standard Deviation shows the volatility of portfolios return. It has upside as well as downside. The returns in this scheme are less as compared to target benchmark return and standard deviation is 27.61% so this scheme is not performing well up to standard. As the beta of this scheme is 0.95 which is very close to one, it shows the equal volatility of scrip with respect to market. As the R squared of this scheme is 0.98 and has a beta of 0.95, it is most likely offering higher risk-adjusted returns. Sharpe ratio gives a single value to be used for the performance ranking of various funds or portfolios. As the Sharpe ratio of this scheme is 0.63 the positive Sharpe ratio, the better its riskadjusted performance has been evaluated.

SBI magnum multi-cap fund- Growth option

49

As NAV is calculated on the basis of closing prices of portfolio securities since NAV has declined by -0.84 so it shows bearish behavior and there is no demand of that mutual fund scheme with respect to market. Standard Deviation shows the volatility of portfolios return. It has upside as well as downside. The returns in this scheme are less as compared to target benchmark return and standard deviation is 25.86% so this scheme is not performing well up to standard. As the beta of this scheme is 0.88 which is lower than one, it shows the low volatility of scrip with respect to market. As the R squared of this scheme is 0.98 and has a beta of 0.88, it is most likely offering higher risk-adjusted returns. Sharpe ratio gives a single value to be used for the performance ranking of various funds or portfolios. As the Sharpe ratio of this scheme is 0.54 the positive Sharpe ratio, the better its riskadjusted performance has been evaluated.

SBI magnum mid-cap fund- Growth option

As NAV is calculated on the basis of closing prices of portfolio securities since NAV has increased by 0.56 so it shows bullish behavior and there is a demand of that mutual fund scheme with respect to market. Standard Deviation shows the volatility of portfolios return. It has upside as well as downside. The returns in this scheme are less as compared to target benchmark return and standard deviation is 36.74% so this scheme is not performing well up to standard. As the beta of this scheme is 1.09 which is higher than one, it shows the high volatility of scrip with respect to market. As the R squared of this scheme is 0.89 and has a beta of 1.09, it is most likely offering higher risk-adjusted returns. Sharpe ratio gives a single value to be used for the performance ranking of various funds or portfolios. As the Sharpe ratio of this scheme is 0.72 the positive Sharpe ratio, the better its riskadjusted performance has been evaluated

SBI infrastructure fund- Growth option

As NAV is calculated on the basis of closing prices of portfolio securities since NAV has declined by -1.01 so it shows bearish behavior and there is no demand of that mutual fund scheme with respect to market. As the beta of this scheme is 0.98 which is very close to one, it shows the equal volatility of scrip with respect to market. As the R squared of this scheme is 0.93 and has a beta of 0.98, it is most likely offering higher risk-adjusted returns

50

Sharpe ratio gives a single value to be used for the performance ranking of various funds or portfolios. As the Sharpe ratio of this scheme is 0.33 the positive Sharpe ratio, the better its riskadjusted performance has been evaluated

PRINCIPAL MUTUAL FUNDS EQUITY SCHEME

DATA ANALYSIS:
SCHEMES Principal Emerging Blue-chip Fund NATURE OF SCHEME OBJECTIVE Open-ended equity Scheme NAV(Rs.) unit as 1/3/2011 To achieve long-term capital 27.73 appreciation by investing in equity and equity related instruments of Mid Cap and Small Cap companies. per NAV(Rs.) per on unit as on 1/3/2012 26.22

Principal Open-ended Growth Equity Fund - Scheme Growth plan

To achieve appreciation.

long

term

capital 49.15

47.64

Principal open ended To invest principally in securities 37.6298 Index Fund- Index Scheme that comprise S&P CNX Nifty growth plan (NSE) and subject to tracking errors endeavor to attain results commensurate with the Nifty. Principal open ended To provide capital appreciation and / 27.68 Large Cap Equity or dividend distribution by FundScheme predominantly investing in growth plan companies having a large market capitalization.

36.5431

26.5

Principal Smart Equity Fundgrowth plan

open-ended equity scheme

To seek to generate long term capital 9.7 appreciation with relatively lower volatility through systematic allocation of funds into equity; and in debt /money market instruments for defensive purposes. 51

9.98

HOW HAVE THE SCHEME(S) PERFORMED?

Principal Emerging Blue-chip Fund

Returns (%) of Growth Option as at October 31, 2011 Period Returns CNX Midcap Index (%) (%) Last 1 Year (26.00) (22.26) Since Inception* 37.31 25.99

Principal Growth Fund

Returns (%) of Growth Option as at October 31, 2011. Period Returns BSE 200 (%) (%) Last 1 Year (20.41) (15.12) Last 3 Years 16.31 23.45 Last 5 Years (0.82) 6.67 Since Inception* 14.80 16.30

Principal Index Fund

Returns (%) of Growth Option as at October 31, 2011 Period Returns S&P CNX (%) Nifty(%) Last 1 Year (11.10) (11.43) Last 3 Years 21.88 22.67 Last 5 Years 6.12 7.30 Since Inception* 11.13 12.11

Principal Large Cap Fund

Returns (%) of Growth Option as at October 31, 2011 Period Returns BSE100 (%) (%) Last 1 Year (15.13) (13.49) 52

Last 3 Years 28.98 Last 5 Years 10.05 Since Inception* 17.42

22.90 6.85 12.84

Principal Smart Equity Fund

Returns (%) of Growth Option as at October 31, 2011 Period Appreciation NAV^ Crisil Balanced Fund Index Since Inception* (2.30) (4.85)

INTERPRETATION:
Principal Emerging Blue-chip Fund
As NAV is calculated on the basis of closing prices of portfolio securities since NAV has declined by -1.51 so it shows bearish behavior and there is no demand of that mutual fund scheme with respect to market.

Principal Growth Fund

As NAV is calculated on the basis of closing prices of portfolio securities since NAV has declined by -1.51 so it shows bearish behavior and there is no demand of that mutual fund scheme with respect to market.

Principal Index Fund

As NAV is calculated on the basis of closing prices of portfolio securities since NAV has declined by -1.09 so it shows bearish behavior and there is no demand of that mutual fund scheme with respect to market.

Principal Large Cap Fund

As NAV is calculated on the basis of closing prices of portfolio securities since NAV has declined by -1.18 so it shows bearish behavior and there is no demand of that mutual fund scheme with respect to market.

53

Principal Smart Equity Fund

As NAV is calculated on the basis of closing prices of portfolio securities since NAV has increased by 0.28 so it shows bullish behavior and there is a demand of that mutual fund scheme with respect to market.

NOTE: Data related to ratios are not available for this mutual fund scheme

BANK OF BARODA MUTUAL FUNDS EQUITY SCHEME

DATA ANALYSIS:
NATURE SCHEME OF S SCHEME OBJECTIVE Standard deviation Beta Sharpe ratio Portfolio Turnover Ratio NAV(Rs.) per unit as on 1/3/2011 8.61 NAV(Rs. ) per unit as on 1/3/2012 7.68

Baroda Pioneer PSU Equity Fundgrowth plan

Open-ended equity Scheme

Baroda Pioneer Infrastructu re Fund-growth plan

Open-ended Equity Scheme

To provide investors with opportunities for long term growth in capital along with the liquidity of an open ended scheme through an active management of investments in a diversified basket of equity stocks of domestic Public Sector Undertakings. to generate long-term capital appreciation by investing predominantly in equity and equity related securities of companies engaged in infrastructure and infrastructure related sectors to provide the investor long term capital growth as also tax benefit under section 80C of the Income Tax Act, 1961. The scheme is targeted for long-term capital appreciation along with stability through a well balanced portfolio comprising of equity and debt securities..

0.17

0.17

0.17

0.17

0.32

0.32

0.32

0.32

9.08

8.05

Baroda Pioneer ELSS 96dividend plan Baroda Pioneer Balance Fundgrowth plan

Open Ended Tax BenefitCum-Growth Scheme

27.55%

1.00

0.68

0.39

23.56

22.1

Open Ended Balance Scheme

18.77%

0.77

0.68

0.80

28.51

27.66

54

Baroda Pioneer Growth Fundgrowth plan

Open Ended Growth Scheme

To generate long term Capital appreciation from an actively managed portfolio of equity & equity related instruments.

27.18%

0.97

0.67

0.37

50.66

46.58

Baroda Pioneer PSU Equity Fund

Date Of Inception: 04/10/2010 Dec 10 -Dec 11& Scheme Name & Benchmark Nav Per Unit 9.35 Baroda Pioneer PSU Equity Fund(in %) -31.23 BSE PSU (Scheme Benchmark) (in %) -32.72 S&P Nifty (Standard Benchmark) (in %) -24.62

Since Inception 10.00 -30.00 -33.38 -20.66

Baroda Pioneer Infrastructure Fund Date Of Inception: 22/06/2010 Scheme Name & Benchmark Nav Per Unit Baroda Pioneer Infrastructure Fund(in %) CNX 100(Scheme Benchmark) (in %) S&P Nifty (Standard Benchmark) (in %) Baroda Pioneer ELSS 96 Fund Date Of Inception: 31/03/1996 Scheme Name & Benchmark Nav Per Unit Baroda Pioneer ELSS 96 Fund(in %) BSE Sensex(Scheme Benchmark) (in %) S&P Nifty (Standard Benchmark) (in %) Dec 10 -Dec 11& 28.25 -28.65 -24.64 -24.62 Since Inception 10.00 11.34 10.15 10.31 Dec 10 -Dec 11& 10.48 -35.69 -25.81 -24.62 Since Inception 10.00 -22.82 -10.17 -8.75

Baroda Pioneer Balance Fund Date Of Inception: 12/09/2003 Dec 10 -Dec 11& Scheme Name & Benchmark Nav Per Unit 30.41 Baroda Pioneer Balance Fund(in %) -19.76 CRISIL Balanced Fund Index (Scheme Benchmark) (in %) - 14.39 S&P Nifty (Standard Benchmark) (in %) -24.62 55 Since Inception 10.00 11.34 -12.75 15.76

Baroda Pioneer Growth Fund Date Of Inception: 12/09/2003 Scheme Name & Benchmark Nav Per Unit Baroda Pioneer Growth Fund(in %) CNX 100(Scheme Benchmark) (in %) S&P Nifty (Standard Benchmark) (in %) Dec 10 -Dec 11& 56.98 -30.03 -25.81 -24.62 Since Inception 10.00 18.12 15.95 15.76

INTERPRETATION:
Baroda Pioneer PSU Equity Fund
As NAV is calculated on the basis of closing prices of portfolio securities since NAV has declined by -0.93 so it shows bearish behavior and there is no demand of that mutual fund scheme with respect to market. Standard Deviation shows the volatility of portfolios return. It has upside as well as downside. The returns in this scheme are more as compared to target benchmark return and standard deviation is 17% so this scheme is performing well up to standard. As the beta of this scheme is 0.17 which is lower than one, it shows the low volatility of scrip with respect to market. The Sharpe ratio tells us whether a portfolio's returns are due to smart investment decisions or a result of excess risk. As the Sharpe ratio of this scheme is 0.17 the positive Sharpe ratio, the better its risk-adjusted performance has been.

Baroda Pioneer Infrastructure Fund

As NAV is calculated on the basis of closing prices of portfolio securities since NAV has declined by -1.03 so it shows bearish behavior and there is no demand of that mutual fund scheme with respect to market. Standard Deviation shows the volatility of portfolios return. It has upside as well as downside. The returns in this scheme are more as compared to target benchmark return and standard deviation is 32% so this scheme is performing well up to standard. As the beta of this scheme is 0.32 which is lower than one, it shows the low volatility of scrip with respect to market. The Sharpe ratio tells us whether a portfolio's returns are due to smart investment decisions or a result of excess risk. As the Sharpe ratio of this scheme is 0.32 the positive Sharpe ratio, the better its risk-adjusted performance has been.

Baroda Pioneer ELSS 96 Fund

56

As NAV is calculated on the basis of closing prices of portfolio securities since NAV has declined by -1.46 so it shows bearish behavior and there is no demand of that mutual fund scheme with respect to market. Standard Deviation shows the volatility of portfolios return. It has upside as well as downside. The returns in this scheme are less as compared to target benchmark return and standard deviation is 27.55% so this scheme is not performing well up to standard. As the beta of this scheme is 1.00 which is very close to one, it shows the equal volatility of scrip with respect to market. The Sharpe ratio tells us whether a portfolio's returns are due to smart investment decisions or a result of excess risk. As the Sharpe ratio of this scheme is 0.68 the positive Sharpe ratio, the better its risk-adjusted performance has been evaluated.

Baroda Pioneer Balance Fund

As NAV is calculated on the basis of closing prices of portfolio securities since NAV has declined by -0.85 so it shows bearish behavior and there is no demand of that mutual fund scheme with respect to market. Standard Deviation shows the volatility of portfolios return. It has upside as well as downside. The returns in this scheme are less as compared to target benchmark return and standard deviation is 18.77% so this scheme is not performing well up to standard. As the beta of this scheme is 0. 77which is lower than one, it shows the low volatility of scrip with respect to market. The Sharpe ratio tells us whether a portfolio's returns are due to smart investment decisions or a result of excess risk. As the Sharpe ratio of this scheme is 0.68 the positive Sharpe ratio, the better its risk-adjusted performance has been evaluated.

Baroda Pioneer Growth Fund

As NAV is calculated on the basis of closing prices of portfolio securities since NAV has declined by -4.08 so it shows bearish behavior and there is no demand of that mutual fund scheme with respect to market. Standard Deviation shows the volatility of portfolios return. It has upside as well as downside. The returns in this scheme are more as compared to target benchmark return and standard deviation is 27.18% so this scheme is performing well up to standard. As the beta of this scheme is 0.97 which is very close to one, it shows the equal volatility of scrip with respect to market. The Sharpe ratio tells us whether a portfolio's returns are due to smart investment decisions or a result of excess risk. As the Sharpe ratio of this scheme is 0.67 the positive Sharpe ratio, the better its risk-adjusted performance has been evaluated.

57

Chapter 4

FINDINGS AND CONCLUSION:

MAJOR FINDINGS AND OBSERVATION:

It shows that private sector has performed better than the public sector mutual fund companies ICICI Prudential FMCG Fund has performed best with increase in NAV with 26.78% NAV of private sector banks are better than private sector banks In the duration Bank of Baroda mutual fund seems to be not performing upto standards as may be due to fluctuation in the market conditions. Standard deviation of private bank is much better than public bank. For the private sector banks beta is more as compared to public sector mutual fund schemes which shows returns and risk are more volatile and fluctuating in private sector mutual fund schemes.

CONCLUSION:
According to study and analysis of equity mutual fund schemes it can be concluded that there is a wide scope for equity schemes in India and people are preferring and investing in these schemes as due to better return and less risk and also equity schemes are giving better returns as compared to past years .Private sector banks are better than public sector banks in form of return, risk, diversification, income and in giving capital appreciation. Mutual Fund Investments are considered to be the most cost-effective investment and are highly popular due to its diversification. A Mutual Fund is a channelized financial hub, usually governed by a third party that permits a group of investors to invest their money together with an objective. The mutual fund basically has a fund manager who undertakes the responsibility of investing the gathered amount into specific securities such as bonds and stocks.

58

BIBLIOGRAPHY:

WEBSITES:
http://www.moneycontrol.com/ http://www.mutualfundsindia.com/ http://www.sbimf.com/ http://www.hdfcfund.com/ http://www.icicipruamc.com/Homepage.aspx http://www.utimf.com/Pages/default.aspx http://www.bankofbaroda.com/ http://www.principalindia.com/ http://www.billdesk.com/obc/OBC_merchantList.html http://www.investopedia.com/terms/n/

FACTSHEETS:
Factsheet March 2012 SBI BarodaFactbookFeb12
59

SID_EquitySchemeFormPNB UTI_Infrastructure_Fund_Mar12 Factsheet-Mar12 ICICI

60