A Project Report On

Comparative analysis of close ended mutual fund on the basis of return, risk & NAV for portfolio of Sundram bsp, Dsp black rock & Religare mutual fund with movement in Nifty Index on NSE for last eight Quarters ending on june,2009 (A Case Study of Stock Holding Corporation Of India LTD., Karnal)
STOCK HOLDING CORPORATION OF INDIA LTD. KARNAL
Kurukshetra University, Kurukshetra In the partial fulfillment of the Requirement for the course of
Conducted at:

Submitted to:

Masters in Business Administration

Under Supervision of: MS. Shaili gupta
(Faculty) TIMT, Ynr

Submitted By:
VISHAL LUTHRA ROLL NO: 1116/08 MBA-Final

________________________________________

Tilak Raj Chadha Institute Of Management & Technology,(TIMT) DECLARATION M.L.N. Educational Complex, Yamuna Nagar-135001 (Haryana) India, Phone Numbers: 01732-220103, 234010, 234110, Fax: -91-1732-234110 Hostel: 01732-254848(Girls), 01732-221170(Boys) E-mail: info@timt.ac.in Website: www.timt.ac.in

DECLARATION

This is to certify that I, vishal luthra the student of Tilak Raj Chadha Institute Of Management & Tecnology (Timt) Institute of Management studying in M.B.A. (IInd Sem.) Class Roll no.1116/08 & Univ. Roll No. has undergone summer training in STOCK HOLDING CORPORATION OF INDIA LIMITED (SHCIL), for six weeks and have submitted a project on the title Comparative analysis of close ended mutual fund on the basis of return, risk & NAV for portfolio of Sundram bsp, Dsp black rock & Religare mutual fund with movement in Nifty Index on NSE for last eight Quarters ending on june,2009 as assigned by the Company, for partial fulfillment of Degree of Master of Business Administration (M.B.A.) to Kurukshetra University, Kurukshetra. I solemnly declared that the work done by me is original and no copy of it has been submit to any other Universities for award of any other degree or on similar title and topic.

PREFACE

Project work is a part of our curriculum that gives us the knowledge about the practical work in any organization and makes are stand in an organization. This also helps to understand & correlate the theoretical concepts better which remains uncovered in the classrooms. I have prepared this report in the process of my postgraduate diploma in business management.

ACKNOWLEDGEMENT
Today after completing my training I feel a lot more relieved. But when I look back I still remember the first day of my training. I was very much excited and a bit nervous. I would never have had completed it if the staff members of the personnel department had not helped me. I wish to express my humble thanks towards all of them. First of all I would like to thank the supreme power, the almighty God who is obviously the one who has always guided me to work on the right path of life. Without his grace this would never come to be today's reality. Next to him I would like to convey my sincere thanks to the management of Stock holding Company of India Ltd, karnal for providing me ample opportunity to work in this esteemed organization. I am deeply indebted to Dr. Vikas Daryal (Director) for their valuable contribution during the academic session. I also want to pay my sincere regards to Mr.vikas Gupta branch manager and vikram jeet senior executive, karnal who guided me for the entire training and help me to get acquaintance with various practical aspects of finance prevailing in the industry.

Vishal luthra

EXECUTIVE SUMMARY
Mutual fund is a mechanism for pooling the resources 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. Mutual funds provide the vehicle for small investors to invest in financial market. So it is very necessary for an investor to evaluate the performance of a mutual fund before investing into it. The present study is based on the past performance of various open ended equity mutual funds scheme. The analytical tools such as Standard Deviation, Alpha, Beta has been show the risk and return of the portfolio & correlation between the fund return & market return has been used to show the investment pattern in mutual fund industry. At last, the study is helpful for an investor to evaluate his existing portfolio as well as to take the decision regarding further investment.

CONTENTS

Introduction Profile of the study

Concept of mutual fund History of Indian mutual fund industry

Why invest through a mutual fund Association of mutual funds of India (AMFI) SEBI code of conduct for intermediaries of mutual funds Types of fund life cycle of different investor Names of AMC

Justification of study

Objectives of study Literature Review Research Methodology and Analytical Tools Sampling &Sampling Design Analytical Tools
Statistical Tools

Data Collection Hypothesis Testing (T- test) Limitations of Study

Results & Discussions/Findings Recommendations Bibliography Annexure

COMPANY BACKGROUND

Introduction to the Company

Stock Holding Corporation of India Ltd. (SHCIL) was incorporated at the special initiative of the Government of India as a Public Limited Company in 1986. It has been jointly promoted and owned by the All India Banks and Financial Institutions, viz., LIC, GIC and its subsidiaries, ICICI Bank, UTI, IDBI, IFCI and IIBI, all leaders in their fields of business. SHCIL began by offering custodial and post trading services, adding depository services and other services to its portfolio over a period of time. SHCIL has established itself in India as a one-stop solution provider in the Financial Services domain. SHCIL maintains dedicated communication channels, well connected to Client institutions, Stock Exchanges, Clearing houses and Depositories, thus maintaining process & quality leadership. As a custodian entrusted with sizeable assets, SHCIL is continuously leveraging its scale and capabilities to help its clients mitigate risk and optimise efficiencies with greater control.

VISION

To be a global major in providing complete investment solutions, with relentless focus on investor care, through superior efficiency and complete transparency.

APPROACH VALUE FOR INVESTORS TRUST: SHCIL values the trust reposed in by the
clients and is committed to uphold it at all cost.

INTEGRITY AND HONESTY: Integrity, honesty and transparency are the

underlying principles in all our dealings.

PERSONALISZED ATTENTION: The most valued asset is our relationship

with the clients, which has been built over years by giving personalized attention.

NETWORK WHICH WORKS: SHCIL has a vast network extending to 200+

cities/towns ensuring easy accessibility, convenience and hassle free trading experience

RESEARCH BASED ADVISORY SERVICES: SHCIL offers proactive and

timely world class research based advice and guidance to its clients to enable them to take informed decisions.

Core Values of SHCIL

1. Safety & Efficiency of Operations is a hallmark of SHCIL 2. Professionalism & Integrity 3. Customer First 4. Relationship building 5. Commitment to Quality irrespective of asset size

CORE VALUES

SERVICES PROVIDED BY THE COMPANY

Financial Institutions Mutual Funds Banks (Nationalised, Scheduled, Public Sector, Private Sector,Co-operative, Foreign) Insurance Companies foreign Institutional Investors Corporates Venture Capital Companies Foreign Venture Capital Companies PF Trusts Clearing and Settlement services

Post trading services

SHCIL has specially trained personnel handling thousands of trade instructions involving large values on sophisticated systems using digital signature on STP (Straight Through Processing) systems, ensuring smooth trade confirmations to Stock Exchanges. Physical Custody (Vault) Services SHCIL has extensive Vault capacity with state-of-the-art technology . This includes tracking with bar-coding techniques. Certificates are held in customised, fire resistant Modular Sliding Storage Units, with automated location tracking, and Logs with tight security

Institutional dp services
Depositories, viz. NSDL (National Securities Depository Ltd.) and CDSL (Central SHCIL has installed dedicated DPMs (Depository Participant Modules) on both the Depository Services (India) Ltd).

Client Relationship Management

Every Institutional client is assigned to an experienced Client Relationship Manager who assists in resolving special issues relating to the client. Over and above the services offered we have a premium offering called ADVAIT, an integrated, web-based, online reporting system which provides a single window access to institutional reports with enhanced security features

Derivatives Processing (Custodian & Clearing)

Mutual Fund Distribution utilizing our Pan-India presence with more than 150 centers in A, B, C class cities and towns of India.

SHCIL PRODUCTS

ADD SHARES
Use the dematerialized shares in your account as a collateral to get you a loan.

EQUIBUY
Purchase shares now without coordinating with brokers or worrying about your settlement obligation at the exchange.

FUND INVEST
Invest in a wide range of Mutual Funds schemes.

GOI BONDS
Subscribe to Relief Bonds issued by the GOI and hold them in the electronic mode with SHCIL, RBI authorized intermediary.

INSURANCE
Corporate Agent of Life Insurance Corporation for Life Insurance products and New India Assurance for Non-Life Insurance products.

STOCK DIRECT
Helps you combine your buy and sell of shares, your settlement and fund transfer all at one go.

Our Financials

We are a zero-debt financially sound company with healthy reserves. We have a consistent dividend-paying track record.

Highly Authenticated Research Team

SHCIL is having a high tech in-house research wing equipped with highly experienced personnel & latest technical tools to give right advice at the right time to its clients. The research based advisory support is forwarded to the clients in the following ways: Weekly research magazine Wise Money distributed to clients Research Based SMS support to clients for equities. Live interactive chat rooms with the market experts during trading hours. Fundamental Research reports sent to clients. Daily market update reports sent through E-mails twice daily (morning mantra and evening buzzer). Investor awareness seminars conducted across the country on a regular basis. SHCIL as one Stop Solution for financial Services. SHCILs core competence in Custodial business spans 18 years, with a dedicated pool of trained and experienced professionals working literally round the clock using state-of-art computer systems and world class technology. SHCIL maintains dedicated communication channels, well connected to Client institutions, Stock Exchanges, Clearing houses and Depositories, thus maintaining process & quality leadership. As a custodian entrusted with sizeable assets, SHCIL is continuously leveraging its scale and capabilities to help its clients mitigate risk and optimize efficiencies with greater control. It is also Providers of one of the best trading platforms in terms of speed, convenience and risk management to trade in NSE, BSE, F&O, NCDEX, and MCX & DGCX.

Accolades and Certifications

Citation and Medal from Smithsonian Institute, Washington D.C, U.S.A. for " Visionary and Innovative use of Technology in Finance, Banking and Insurance Industry". First South Asian Corporate to receive this. Computer Society of India Award for best IT usage in the Country Our software processes have been assessed at SEI CMM Level 3. Accepted industry leader and pioneer in Custodial Systems.

Our Technology
Comprehensive business solutions adept in handling high volume time critical transactions within a secured environment. Zero error approach towards delivery of products and services Single window view of business and up-to date information Oracle database currently of 1.6 Terabytes size (and growing) managed by competent IT personnel with domain expertise. Data mirroring using cluster technology and fibre optic connection as part of Disaster Management Plan Network Security using Firewall, Proxy, Intrusion Detection System(IDS) and Intrusion Prevention System (IPS) Internet products with built in PKI features. Dedicated communication channels with built-in redundancies in connectivity to Client Institutions, Stock Exchanges, Clearing houses and Depositories

Why SHCIL?

Why you would choose SHCIL as a preferred Service Provider Well integrated front and back office, paper and electronic systems. A focused Client Relation Team to manage your needs & queries. A single point contact for your comfort. In-house capability to address all IT needs in terms of software development, maintenance, back office processing, database administration, network maintenance, backups and disaster recovery. Multilevel security is maintained in software, applications and guards to access to various data, client and internal reports. Expertise in running processes utilizing digital signatures. Regular Audits internal and external, by SEBI, Depositories, Clients and compliance to rules and regulations. Constant review and benchmarking of processes to ensure adherence to global best practices. Insurance cover with international re-insurance. Full Confidentiality of business operations.

Achievements
SHCIL began by offering custodial and post trading services, adding depository services and other services to its portfolio over a period of time.SHCIL has established itself in India as a one-stop solution provider in the Financial Services domain. ISO 9001:2000 certified DP for both shares and commodities SHCILs core competence in Custodial business spans 18 years, with a dedicated pool of trained and experienced professionals working literally round the clock using state-of-art computer systems and world class technologySHCIL maintains dedicated communication channels, well connected to Client institutions, Stock Exchanges, Clearing houses and Depositories, thus maintaining process & quality leadership.

As a custodian entrusted with sizeable assets, SHCIL is continuously leveraging its scale and capabilities to help its clients mitigate risk and optimize efficiencies with greater control. Our Depository Participant services address your individual investment needs. With a parentage of leading financial institutions and insurance majors and a proven track record in the Custodian business, we have reiterated our past success by establishing ourselves as the first ever and largest Depository Participant in India. SHCIL's long-standing association with Clearing Members has enabled it to develop services based on an understanding of their working and their requirement for timely and accurate information. We currently offer Depository services to more than 680 clearing members of various exchanges connected with NSDL and CDSL. Our Customer Care lines answer all your DP queries while the Interactive Voice Response (IVR) system gives you information on your account and other valuable data like CC calendar details, tariff, ISIN information, etc. via telephone, fax and e-mail. Everyone wants to be rich and wealthy. But to amass wealth and make it grow, it is necessary for one to invest wisely. Then SMC Global became long and exciting journey. Where service of a knowledgeable and trustworthy guide is invaluable and imperative to make journey easier and more enjoyable. Mutual Funds became a part of the company three years before i.e. from July 2005. The company has grown radically in the mutual fund industry and has able to get a noticeable position.

Founders and Promoters

Stock Holding Corporation of India Ltd. (SHCIL) was incorporated at the special initiative of the Government of India as a Public Limited Company in 1986. It has been jointly promoted and owned by the All India Banks and Financial Institutions, viz., LIC, GIC and its subsidiaries, ICICI Bank, UTI, IDBI, IFCI and IIBI, all leaders in their fields of business. SHCIL began by offering custodial and post trading services, adding depository services and other services to its portfolio over a period of time.SHCIL has established itself in India as a one-stop solution provider in the Financial Services domain.SHCIL has a network of 190 branches spread across the country providing services at your doorstep. Please select your state to locate the nearest branch address and contact details. Call up any of our nearest branch for information on Products and Services.

Theory

without practice is sterile,

Practice without theory is blind

MUTUAL FUND
A mutual fund is a trust that pools the savings of a number of investors with common financial goals. The collected money is invested in various instruments like debentures, shares, etc. The income generated from these instruments and the capital appreciation is shared by the investors in proportion to the number of units owned by them. Mutual fund is a mechanism for pooling the resources 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 (UTI) was the first mutual fund set up in India in the year 1963. In early 1990s, 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 Regulation

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 securities.

Mutual fund operation flow chart:--

Investors Passed back to Pool their money with

Returns

Fund Manager

Securities

Custodian, who is registered with SEBI, holds the securities of various schemes 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 lakhs and the mutual fund has issued 10 lakhs 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.

CONCEPT
A 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 then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciations realized are 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 basket of securities at a relatively low cost. The flow chart below describes broadly the working of a mutual fund:

HISTORY OF INDIAN MUTUAL FUND INDUSTRY

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 the. 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 Can 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.

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 Ltd, 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. As at the end of September, 2004, there were 29 funds, which manage assets of Rs.153108 crores under 421 schemes.

Structure of the Indian mutual fund industry

The Indian mutual fund industry is dominated by the Unit Trust of India, which has a total corpus of Rs700bn collected from more than 20 million investors. The UTI has many funds/schemes in all categories i.e. equity, balanced, income etc with some being open-ended and some being closed-ended. The Unit Scheme 1964 commonly referred to as US 64, which is a balanced fund, is the biggest scheme with a corpus of about

Rs200bn. Most of its investors believe that the UTI is government owned and controlled, which, while legally incorrect, is true for all practical purposes. The second largest category of mutual funds is the ones floated by nationalized banks. Can bank Asset Management floated by Canara Bank and SBI Funds Management floated by the State Bank of India are the largest of these. GIC AMC floated by General Insurance Corporation and Jeevan Bima Sahayog AMC floated by the LIC are some of the other prominent ones.

The structure indicated by the new regulations is indicated as under:

A Mutual Fund Company of four separate entities, namely Sponsor, Trustee, AMC (Asset Management Company) and Custodian.

Sponsor
The sponsor is the promoter of the Mutual Fund and gets it registered with SEBI.Sponsor appoints the trustees, custodians and the AMC with prior approval of SEBI, and in accordance with SEBI regulations. The sponsor is required to contribute at least 40% of the minimum net worth (Rs. 10 crore) of the Asset Management Company.

Trustee
In India, Mutual Funds are organized as trusts. The trust is created by sponsor, who is ctually the entity interested in creating the Mutual Fund Business. The Mutual und, which is a trust, is managed by a by a trust company or a Board of trustees.

The Provisions of the Indian trust Act govern board of trustees and trust companies. If the Trustee is a Company; it is also subject to the provisions of the Indian Companies Act. The sponsor executes and registers a trust deed in favor of the trustees. SEBI Regulations stipulate that the trustees are fully responsible for the compliance of the Mutual Funds with SEBI regulations, and for the protection of the interest of the Mutual Fund investors.

Asset Management Company

The trustees, on the advice of the sponsors, usually appoint the AMC. The trust deed authorizes the trustees to appoint the AMC. The AMC is usually a private limited company, in which the sponsors and their associates or joint venture partners are shareholders. The AMC has to be a SEBI registered entity, and should have a minimum net worth of Rs.10 crore. The trustees sign an investment agreement with the AMC, which spells out the functions of the AMC. Though the trust is the Mutual Fund, the AMC is its operational face. The AMC structures the Mutual Fund products, markets them and mobilizes the funds of the investors, according to the mandate they receive from the trustees. The fee is defined as a percentage of the funds managed by the AMC. Against this fee, the AMC will bear all its operational expenses. Resultant profits would be available for distribution to the sponsors.

AMCs can be of following types:

AMCs owned by Banks. AMCs owned by Financial Institutions. AMC s owned by Indian Private Sector Companies. AMCs owned by Foreign Institutional Investors. AMCs owned by Indian & Foreign Sponsors.

Custodians
Custodians are responsible for the securities held in the Mutual Funds portfolio. They ensure that securities that are bought are delivered and transferred to the books of the Mutual Funds, and that Funds are paid out when a Mutual Fund buys securities. Custodians also track corporate actions like bonus issues, right offers, offer for sale, buy back & open offers for acquisitions.

Why invest through a Mutual Fund

Affordability: Mutual funds allow you to start with small investments. For example,
if you want to buy a portfolio of blue chips of modest size, you should at least have a few

lakhs of rupees. A mutual fund gives you the same portfolio for meager investment of Rs 1,000-5,000. A mutual fund can do that because it collects money from many people and it has a large corpus.

Professional management: The major advantage of investing in a mutual fund is

that you get a professional money manager for a small fee. You can leave the investment decisions to him and only have to monitor the performance of the fund at regular intervals.

Diversification: Considered the essential tool in risk management, Mutual Funds makes
it possible for even small investors to diversify their portfolio. A mutual fund can effectively diversify its portfolio because of the large corpus. However, a small investor cannot have a well-diversified portfolio because it calls for large investment. For example, a modest portfolio of 10 blue-chip stocks calls for a few a few thousands.

Convenience: Mutual funds offer tailor-made solutions like systematic investment

plans and systematic withdrawal plans to investors, which is very convenient to investors. Investors also do not have to worry about the investment decisions or they do not have to deal with their brokerage or depository, etc. for buying or selling of securities. Mutual funds also offer specialized schemes like retirement plan, childrens plan, industry specific schemes, etc. to suit personal preference of investors. These schemes also help small investors with asset allocation of their corpus. It also saves a lot of paper work.

Cost effectiveness: A small investor will find that a mutual fund route is a cost
effective method. AMC fee is normally 2.5% and they also save a lot of Transaction costs as they get concession from brokerages. Also, they get the service of a financial professional for a very small fee. If they were to seek a financial advisor's help directly, they may end up pay more. Also, the size of the corpus should be large to get the service of investment experts, who offer portfolio management.

Liquidity: You can liquidate your investments anytime you want. Most mutual funds
dispatch checks for redemption proceeds within two or three working days. You also do

not have to pay any penal interest in most cases. However, some schemes charge an exit load.

Tax breaks: You do not have to pay any taxes on dividends issued by mutual funds.
You also have the advantage of capital gains taxation. Tax-saving schemes and pension schemes give you the added advantage of benefits under Section 88. Investments up to Rs 10,000 in them qualify for tax rebate.

Transparency: Mutual funds offer daily NAVs of schemes, which help you to
monitor your investments on a regular basis. They also send quarterly newsletters, which give details of the portfolio, performance of schemes against various benchmarks, etc. They are also well regulated and SEBI monitors their actions closely.

DISADVANTAGES

Costs Despite Negative Returns

Investors must pay sales charges, annual fees, and other expenses (which we'll discuss below) regardless of how the fund performs. And, depending on the timing of their investment, investors may also have to pay taxes on any capital gains distribution they receive even if the fund went on to perform poorly after they bought shares.

Lack of Control
Investors typically cannot ascertain the exact make-up of a fund's portfolio at any given time, nor can they directly influence which securities the fund manager buys and sells or the timing of those trades.

 Price Uncertainty
With an individual stock, you can obtain real-time (or close to real-time) pricing information with relative ease by checking financial websites or by calling your broker. You can also monitor how a stock's price changes from hour to hour or even second to second. By contrast, with a mutual fund, the price at which you purchase or redeem shares will typically depend on the fund's NAV, which the fund might not calculate until many hours after you've placed your order. In general, mutual funds must calculate their NAV at least once every business day, typically after the major U.S. exchanges close.

Association of Mutual Funds of India (AMFI)

With the Increase in Mutual und players in India, a need for Mutual fund association was generated to function as a non-profit organization. Association of Mutual Fund of India (AMFI) was incorporated on 22nd August 1995.

AMFI is governed by a board of directors elected from Mutual Funds and its headed by a full time chairman. AMFI is not a registered SRO (Self Regulatory Organization), and therefore can only issue guidelines to members. It cannot enforce regulation. However, in order to enable orderly growth of the industry, and bring about uniformity and standards in practice, most members tend to abide by the guidelines.

Objectives of AMFI
To define and maintain high professional and ethical standards in all areas of operation of Mutual fund industry. To recommend and promote best business practices and code of conduct to be followed by members and others engaged in the activities of mutual fund and asset management including agencies connected or involved in the field of capital markets and financial services. To interact with the Securities and Exchange Board of India (SEBI) and to represent to SEBI on all matters concerning the mutual fund industry. To represent to the Government, Reserve Bank of India and other bodies on all matters relating to the Mutual Fund Industry. To develop a cadre of well-trained Agent distributors and to implement a programme of training and certification for all intermediaries and other engaged in the industry. To undertake nation wide investor awareness programme so as to promote proper understanding of the concept and working of mutual funds. To disseminate information on Mutual Fund Industry and to undertake studies and research directly and/or in association with other bodies.

SEBI Code of Conduct for Intermediaries of Mutual Funds

Take necessary steps to ensure that the clients' interest is protected

 Adhere to SEBI Mutual Fund Regulations and guidelines related to selling, distribution and advertising practices. Be fully conversant with the key provisions of the offer document as well as the operational requirements of various schemes. Provide full and latest information of schemes to investors in the form of offer documents, performance reports, fact sheets, portfolio disclosures and brochures, and recommend schemes appropriate for the client's situation and needs. Highlight risk factors of each scheme, avoid misrepresentation and exaggeration, and urge investors to go through offer documents/key information memorandum before deciding to make investments. Disclose all material information related to the schemes/plans while canvassing for business. Abstain from indicating or assuring returns in any type of scheme, unless the offer document is explicit in this regard. Maintain necessary infrastructure to support the AMCs in maintaining high service standards to investors, and ensure that critical operations such as forwarding forms and cheques to AMCs/Registrars and dispatch of statement of account and redemption cheques to investors are done within the time frame prescribed in the offer document and SEBI Mutual Fund Regulations. Avoid colluding with clients in faulty business practices such as bouncing cheques, wrong claiming of dividend/redemption cheques, etc. Avoid commission driven malpractices such as: (a) recommending inappropriate products solely because the intermediary is getting higher commissions there from. (b) Encouraging over transacting and churning of mutual fund investments to earn higher commissions, even if they mean higher transaction costs and tax for investors. Avoid making negative statements about any AMC or scheme and ensure that comparisons if any are made with similar and comparable products.

 Ensure that all investor related statutory communications (such as changes in fundamental attributes, exit/entry load, exit options, and other material aspects) are sent to investors reliably and on time. Maintain confidentiality of all investor deals and transactions. When marketing various schemes, remember that a client's interest and suitability to their financial needs is paramount, and that extra commission or incentive earned should never form the basis for recommending a scheme to the client. Intermediaries will not rebate commission back to investors and avoid attracting clients through temptation of rebate/gifts etc. A focus on financial planning and advisory services ensures correct selling, and also reduces the trend towards investors asking for pass back of commission. All employees engaged in sales and marketing should obtain AMFI certification. Employees in other functional areas should also be encouraged to obtain the same certification

Choice offered by a Mutual Fund to the Investor

Mutual Funds are investment portfolios that invest in financial market instruments. These portfolios are created by pooling investor contributions, usually denominated in units. There are a variety of ways in which Mutual Funds are created, to cater to the varied risk and return requirements of investors. Depending on the investment portfolios that are created, and the segments of the various markets in which funds are invested, there is choices of funds to investor.

Mutual Funds can offer further Generic choices to the Investors in terms of:
Nature of participation: Open or Closed ended Nature of Income distribution: Dividend, Growth, and Re-investment of dividends.

Open-ended Funds/Schemes
These funds are sold at the NAV based prices, generally calculated on every business day. These schemes have unlimited capitalization, Open-ended schemes do not have a fixed maturity, i.e. there is no cap on the amount you can buy from the fund and the unit capital can keep growing. These funds are not generally listed on any exchange. Open-ended funds are bringing in a revival of the Mutual Fund industry, owing to increased liquidity, transparency and performance in the new Open-ended funds prompted by the private sector and foreign players.

Close-ended Funds/Schemes
Schemes that have stipulated maturity period, limited capitalization and the units are listed on the stock exchange are called Closed-ended schemes. These schemes have historically scene a lot of subscription. This popularity is estimated to be on account of firstly, public sector Mutual Funds having floated a lot of Closed-ended income schemes

with guaranteed returns and secondly easy liquidity on account of listed on the stock exchanges.

Dividend Option
Investors, who choose a dividend option on their investments, will receive dividend from the Mutual Fund, as and when dividends are declared. Dividends are paid in the form of warrants, or are directly credited to the investors bank account. In a normal dividend plan, periodicity of dividend is left to the Fund Managers, who may pay annual or an interim dividend. Fund Managers decide the time of the payouts. Mutual Funds provide investors the option of receiving dividends at pre-determined frequencies, which can vary from daily, weekly, monthly, quarterly, half yearly and annually. The NAV of these investors holding will vary with changes in the value of the portfolio.

Growth Option
Investors who do not require periodic income distributions can choose the Growth Option, where the incomes earned are retained in the investment portfolio, and allowed to grow, rather than being distributed to the investors. Investors with longer-term investment horizons, and limited requirements for income, choose this option The returned to the investor who chooses a Growth option is the rate at which his initial investment has grown over the period for which he has invested in the Fund.

Re-investment Option
Mutual Funds also provide option to investors in the form of Re-investment. Investors Re-invest the dividends that are declared by the Mutual fund, back into the Fund itself, at NAV that is prevalent at the time of Re-investment. In this option, the number of units held by the investor will change with every Re-investment. The value of the units will be similar to that under the dividend option.

Types of Fund

Classification on the Basis of Structure

Open-ended Funds
An open-end fund is one that is available for subscription all through the year. These do not have a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value ("NAV") related prices. The key feature of open-end schemes is liquidity.

Closed-ended Funds
A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15 years. The fund is open for subscription only during a specified period. 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 they 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.

Interval Funds
Interval funds combine the features of open-ended and close-ended schemes. They are open for sale or redemption during pre-determined intervals at NAV related prices

By Investment Objective
Growth Funds
The aim of growth funds is to provide capital appreciation over the medium to longterm. Such schemes normally invest a majority of their corpus/amount in equities. It has been proven that returns from stocks, have out performed most other kind of investments held over the long term. Growth schemes are ideal for investors having a long-term outlook seeking growth over a period of time.

Income Funds
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 and Government securities. Income Funds are ideal for capital stability and regular income.

Balanced Funds
The aim of balanced funds is to provide both growth and regular income. Such schemes periodically distribute a part of their earning and invest both in equities and fixed income securities in the proportion indicated in their offer documents. In a rising stock market, the NAV of these schemes may not normally keep pace, or fall equally when the market falls. These are ideal for investors looking for a combination of income and moderate growth.

Money Market Funds

The aim of money market funds is to provide easy liquidity, preservation of capital and moderate income. These schemes generally invest in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money. Returns on these schemes may fluctuate depending upon the interest rates prevailing in the market. These are ideal for Corporate and individual investors as a means to park their surplus funds for short periods.

Speciality / Sectoral funds

These funds invest in securities of a specific industry or sector of the economy such as health care, technology, leisure, utilities or precious metals. The fund enables investors to diversify holdings among many companies with in an industry, a more conservative approach then investing directly in one particular company.

Sector fund offers the opportunity for sharp capital gains in cases where the funds industry is in Favor but also in entailed the risk of capital losses when the industries out of favor. While Sector funds restrict holdings tom a particular industry, other specialty funds such as Index funds gives investors a broadly diversify portfolio and attempt to mirror the performance of various market averages, Index Funds generally buy share in all the companies composing the BSE Sensex or NSE Nifty or other stock market indices.

Load or No-Load Funds

A Load Fund is one that charges a percentage of NAV for entry or exit. That is, each time one buys or sells units in the Funds, a charge will be payable. This charge is used by the Mutual fund for marketing and distribution expenses. Suppose the NAV per unit is Rs.10. if the entry as well as exit load charged is 1 %, then the investors who buy would be required to pay Rs.10.10 and those who offer the units for repurchase to the Mutual Fund will get only Rs.9.90 per unit. The investor should take the loads into consideration while making investment as these affect their yields/returns. However, the investor should also consider the performance track record and service standards of the Mutual Funds, which are more important. Efficient funds may give higher returns in spite of Loads. A No-Load Fund is one that does not charge for entry or exit. It means investors can enter the fund/scheme at NAV and no additional charges are payable on purchase or sale of units.

Other Schemes
Tax Saving Schemes
These schemes offer tax rebates to the investors under specific provisions of the Indian Income Tax laws as the Government offers tax incentives for investment in specified avenues. Investments made in Equity Linked Savings Schemes (ELSS) and Pension Schemes are allowed as deduction u/s 88 of the Income Tax Act, 1961. The Act also provides opportunities to investors to save capital gains u/s 54EA and 54EB by investing in Mutual Funds, provided the capital asset has been sold prior to April 1, 2000 and the amount is invested before September 30, 2000.

Special Schemes
Industry Specific Schemes Industry Specific Schemes invest only in the industries specified in the offer document. The investment of these funds is limited to specific industries like InfoTech, FMCG, and Pharmaceuticals etc. Index Schemes Index Funds attempt to replicate the performance of a particular index such as the BSE Sensex or the NSE 50. Sectoral Schemes Sectoral Funds are those, which invest exclusively in a specified industry or a group of industries or various segments such as 'A' Group shares or initial public offerings.

Life cycle of mutual fund

Life Cycle Stage Childhood Stage

Financial Needs Taken care of by parents

Ability to Invest Investment of Gifts Limited due to higher Spending

Choice of Investment Products Long Term Liquid plans & Short term Investment. Some exposure to Equity and Pension products. Medium to Long term Investments. Ability to take risks fixed Income, insurance & Equity products. Medium to Long term Investments. Ability to take risks. Portfolio of Products, for growth & long term

Young Unmarried

Immediate & Short Term

Young Married

Short& Immediate term Housing & Insurance Needs. Consumer financial need.

Young Married with Children

Medium To Long term Needs. Childrens Education. Housing & Consumer finance Housing.

Limited due to Higher spending. Cash flow requirement s are also limited Limited, Financial Planning needs are highest as this stage is ideal for disciplining Spending & Saving regularly

Married with older Children

Medium term needs for Childrens education and marriage. Need for pension, Insurance & Medical cover. Ensuring adequate Income to pressure the standard of living, Post retirement Short to Medium term

Post Family / Preretirement stage

Higher Medium term saving Investment with high ratios Liquidity needs. recommende Portfolio of products d. including equity, Requirement debt & Pension plans for intermittent cash flows higher. Adequate Maximum Income Investment & Savings. in Pension products.

Retirement Stage

Lower Saving, Ratios, Higher Cash Flow

Medium term Investments.Prefere nce for liquid &Income Pro

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

Nature of ownership Private foreign Private Indian Banks

Bank of India Asset Management Company Limited Banks Can bank Investment Management Services Limited Banks Cholamandalam Cazenove Asset Management Company Limited Private foreign 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 Jeevan Bima Sahayog Asset Management Company Limited Morgan Stanley Asset Management Company Private Limited Punjab National Bank Asset Management Company Limited 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 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 Private Indian Banks Private Indian Private foreign Private foreign

Justification of Study

Every one wants to invest in the Stock Market. In order to directly investing in the Stock market there is a need of high amount of money for the purpose of construct a portfolio and also good knowledge about the stock market otherwise there can be chances of losses. Generally very few people have big amount of capital and good knowledge of Stock market to overcome this problem Mutual fund was introduced. People prefer to invest through Mutual funds because in this they get the facility of Low investment is possible Professionally managed portfolio Facility of portfolio even with the small amount of investment Diversification I have undertaken Close ended Equity Dividend Mutual fund topic. So as to analysis the reasons for buying and selling of those stocks even when these fund are not listed on stock exchange & to know the various income generated by the fund after the investment.

OBJCTIVES OF THE STUDY

Main objectives:
To analyses the performance of SUNDRAM BSP, DSB BLACK ROCK, RELIGARE mutual fund with different analytical tools.

Sub objectives:
1. To know about the various types of close ended equity fund Schemes and Different players working in Indian Market. 2. To analyze the various advantage and disadvantage related with the investment in the stock market. 3. To analyze the guideline given to the fund houses regarding to the investment 4. To analyze the various rights available with the investor 5. To analyses the performance of DSP Black Rock, Sundaram BSP, Religare mutual fund with different analytical tools in comparison with nifty return 6. To analyze what could be the different steps in investing the money in the mutual fund. .

Literature Review
The literature review includes the academic books, journals, internet access, etc.

magazines

ICFAI reader1- Mutual fund distribution channel- In this I gathered the

information about the various parties involved in mutual fund transaction. It guided me to know about the growth of the various schemes of Mutual Fund over the last few years.

Economic & political weekly2 April-2006 It helped me to know about the Gupta S.P.3. The information regarding the statistical tools and their

trends of mutual fund industry. Some data regarding this has been taken from it.

limitations in different fields the research is given in this section. This section explains why to use correlation and what are the situations in which correlation can be used, and what does correlation means.

Schaums: Statistical Methods4- Sultan Chand Publication The information

regarding the statistical tools and their limitations in different fields the research is given in this section. This section explains why to use trend analysis and what are the situations in which correlation can be used, and what does correlation means.

Fisher & Jordan5: Security Analysis & Portfolio management-this book has Pandian Punitawathy6: Security Analysis & portfolio management: This

been used to calculate the indices on which basis the ranking has been given.

book helped in understanding the concept of different indices for portfolio evaluation.

Beri G.C.7- Marketing Research 3rd edition: This book helped in Kothari C.R.8 The information regarding the basics of research and research

understanding the different research designs and analytical tools used here.

methodology , what are the different types of research designs, what is problem

statement, what are the sources of data collection and what are the methods of data collection is given in this section

Pandey I.M.9-Financial Management by Vikas Publishing House the concept Srivastva10: Management of Indian Financial Institutions-Himalaya

of mutual funds & various schemes have been studied from this book.

Publishing House 6th edition. Introduction of mutual funds, their advantages, disadvantages and various types have been taken from it.

Indian journal of commerce11-jun, 2006: In this article they shows the Southern Economist12 Sep.2006: In this the performance of the mutual fund Journal of finance13-feb, 2006: In this the various schemes offered by the Facts for you14-jan, 2006: In the information about the risk and return was The Management Accountant15 - April 2005: In this article related to the

growth of the mutual fund in India is given

was given.

mutual fund houses were given.

given.

benefit related to the mutual fund as comparison to the fixed deposits in he Banks was given.

Southern Economist16 - December 15, 2005: In this the portfolio of the SEBI Bulletin
17

different Mutual fund houses was given.

July, 2005: In the Asset Management of the different

mutual fund houses was given.

Charter financial analysis18-jan, 2007: In this information about the various Journal of finance19-dec, 2005: In this the fund size of the different Mutual ICFAI reader20-july2006, Feb 2006: In this information about the Entry and

Analytical tools was given

fund was given.

Exit load was given.

Websites visited:
http://www.amfiindia.com/showhtml.asp?page=aboutusa-This site explained the information regarding various mutual funds and its growth in past years. www.mutualfundsindia/navreports.jspb It provided me the data regarding various parties involved in mutual funds and investment pattern of public and private sector mutual funds http://www.amfiindia.com/navtypereport.asp#Type10c Data regarding NAVs on different dates has been taken from this site. www.financeindiamart.comd- Different expert comments have been extracted & the mechanism of mutual funds has been taken from this site .http://www.hdfcfund.com/navcorner/index.jspe provided information regarding investors and investment criteria in different funds http://www.tatamutualfund.com/aboutus/index.jspf--of Tata mutual fund, portfolio etc http://www.utimutualfund.com/aboutus/index.jspg-portfolio, board of director etc http://www.valuereserachonline.com/history/ index.jsp-- This site provided information regarding nifty index. This site provided past year of return nift. This site provided information regarding UTI Mutual fund such as history, This site provided information regarding Tata mutual fund such as history This site managing of funds by the

Sundaram BNP Paribas Asset Management Co Ltd.

Sundaram Asset Management Company Limited is a public limited company incorporated under the Companies Act, 1956 with a paid up capital of Rs. 15 crores. It is a wholly owned subsidiary of Sundaram Finance Limited. It has been appointed Investment Manager vide Investment Management Agreement (IMA) dated August 24, 1996 executed between the trustees and the AMC. Sundaram Finance Limited is the Sponsor for the Mutual Fund and Sundaram Finance Trustee Company Ltd. is the trustee.

No. of schemes No. of schemes including options Equity Schemes Debt Schemes Short term debt Schemes Equity & Debt Money Market Gilt Fund

43 160 31 106 14 5 0 2

Corpus under management

Rs.14794.08 Crs. as on Aug 31, 2009

Key Personnel
D.N. Ghosh (Chairman) T.P. Raman (CEO) T S Sritharan (Hd of Operation), P.Sundararajan(Compliance Officer)
.

S.Balasubramanian (IRO) Dr. Ashoke Bijapurkar (Director), Mr. T.N. AnantharamaIyer (Director)

Fund Managers
Satish Ramanathan Dheeraj Singh K Ramkumar J. Venkatesan Mr. S Krishnakumar N Prasad, Rahul Pal Srividhya Rajesh

DSP Black Rock Investment Managers Pvt. Ltd.

DSP BlackRock Investment Managers Ltd. is the investment manager to DSP BlackRock Mutual Fund. The philosophy of DSP BlackRock Investment Managers Ltd. has been grounded in the belief that experienced investment professionals, using a disciplined process and sophisticated analytical tools, can consistently add value to client portfolios. DSP BlackRock Investment Managers Ltd. takes a three dimensional approach to the management of the organization, incorporating functional, product and regional elements in support of clients goals. The functional dimension looks at the company s operations by specific task, such as portfolio management, account management or operations. The product dimension brings together the cross-disciplinary expertise critical to managing client assets in each class. Finally, the regional aspect of the company s model recognizes the unique, geography-specific needs of clients as well as the importance of local regulatory issues.

No. of schemes No. of schemes including options Equity Schemes Debt Schemes Short term debt Schemes Equity & Debt Money Market Gilt Fund

25 96 25 44 12 2 0 6

Corpus under management Rs.15902.556 Crs. as on Sep 30, 2009 Key Personnel
S. Naganath (President & CIO), Anup Maheshwari (head equities and corporate strategy), Dhawal Dalal (Senior VP and HeadFixed income), Apoorva Shah (Senior VP and fund manager), Ramamoorthy Rajagopal (CAO)

Fund Managers
Aniruddha Naha Anup Maheshwari Aseem Gupta Dhawal Dalal Mayana Sobti Rajani

Religare Asset Management Company Limited

Religare Asset Management is promoted by the Religare Group, one of the leading integrated financial services groups in India. The businesses of the Religare Group extend across three key verticals; the Retail, Institutional and Wealth spectrums, catering to a diverse and wide base of clients. Religare, with its pan India and global footprint, offers a diverse bouquet of investment offerings and financial services.
No. of schemes 23 No. of schemes including options Equity Schemes Debt Schemes Short term debt Schemes Equity & Debt Money Market Gilt Fund 86 26 38 11 0 0 11

Corpus under management

Rs.8618.52 Crs. as on Apr 30, 2009

Key Personnel
Mr Saurabh Nanavati (CEO), Mr Ketan Ugrankar (COO) Mr Suresh Jakhotiya (Comp) Mr. Surinder Singh Negi (ISO), Ashish Nigam (Hd FI), Vetri Subramanium( Hd Eq).

Fund Managers
Mr. Pradeep Kumar Ashish Nigam Mr. Vetri Subramaniam Mr. Vinay Paharia Nitish Sikand Umesh Sharma

RESEARCH METHODOLOGY
Research is commonly refers to the search for knowledge. It is the scientific and systematic search for pertinent information on a specific topic. In fact research is an art of scientific investigation. As by Clifford Woody: -Research comprises of defining and redefining the problems, formulating hypothesis or suggesting solutions, collecting, organizing and evaluating the data, making deductions and reading the conclusion and at last carefully testing the conclusion to determine whether they fit formulated hypothesis.

FORMULATION OF RESEARCH PROBLEM

EXTENSIVE LITERATURE SURVEY

COLLECTION OF DATA

ANALYSIS OF DATA

INTERPRETATION

RECOMMENDATION

RESEARCH DESIGN
A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. The research design with help to answer the following questions: Why the study is being made? From where the data needed could be collected? What time is required for the study to be competed & how much material is needed? What will be the technique for data collections? How the data can be analyzed?

Research Design can be categorized as:

TYPES OF RESEARCH DESIGN

EXPLORATORY RESEARCH DESIGN

DESCRIPTIVE & DIAGNOSTIC RESEARCH DESIGN

EXPERIMENTAL RESEARCH DESIGN

Research design in study: In the study I will apply descriptive research design. As descriptive research design is the description of state of affairs, as it exists at present. In this type of research the researcher has no control over the variables, he can only report what ahs happened or what is happening.

DATA COLLECTION
After the research problem has been identified and selected the next step is to gather the requisite data. While deciding about the method of data collection to be used for the researcher should keep in mind two types of data VIZ. primary and secondary

TYPES OF DATA

PRIMARY DATA .

SECONDRY DATA

Data has been collected from secondary source.

The secondary data as it has always been important for the completion of any report provides a reliable, suitable, adequate and specific knowledge. The standard cost reports, working sheets provide the knowledge and information regarding the relevant subjects.

ANALYTICAL TOOLS
MEASURE FOR SHARPE'S PORTFOLIOS PERFORMANCE The Sharpe's index measures the risk premium of the portfolio relative to the total amount of risk in portfolio. The Sharpe's index is measured as:

S = rP rf / p
Where, S = Sharpe's Index rp = Average monthly return of fund. rf= risk free return *. * Risk free return (rf) is taken as 7.73% per annum TREYNOR'S PERFORMANCE MEASURES FOR PORTFOLIOS Jack Trey nor, as measures by portfolio beta coefficients put an index of portfolio performance that is based on systematic risk, forward. It is used to rank the interest performance of different assets. It is a risk - adjusted rate of return measure than is calculated by dividing the assets risk premium by their beta coefficient.

Tn =rP rf /
Where

Tn = Treynor's index rp = average return on portfolio rf = risk free return p = beta coefficient of portfolio.

JENSEN MEASURE
The Sharpe and Treynor index models provide measures for ranking the relative performance of various portfolios on a risk-adjusted basis according to Jensen equilibrium average return on a portfolio would be a benchmark. Equilibrium average return of the portfolio by the market with respect to systematic risk to portfolio should earn with the systematic return.

Rp = + (rm - rf )
Where,

Rp= average return of the portfolio. rf = risk free return rm= average market return = A measure of systematic = Y-X If the alpha is positive, the portfolio has performed better and if alpha is negative it has not shown performance up to the benchmark, i.e. the market Index. Standard Deviation: It is used to measure the variation in the individual return from the average expected return over a certain period. Standard deviation is used in the concept of risk of a portfolio of investment. Higher the Standard Deviation means a greater fluctuation in expected return. = (Y- Y) N Where, Y = fund return Beta: Beta measures the systematic risk and show how price of security respond to the market foresees. It is calculated by relating the return on security with return for market. = n XY ( x y) / n x (x) Where, X =index return Y = fund return

Alpha: It measures the stock unsystematic return and it is average return independent of market return. It is calculated by comparing the funds actual performance with the risk adjusted expected return. = Y-X Where, X =index return Y = fund return PERFORMANCE EVALUATION OF DSB BLACK ROCK[ Equity Fund (D) X(nifty) -13.44 30.47 14.48 3.47 -8.47 22.71 19.76 14.74 X=86.9 3 (X) 180.63 928.42 209.6 12.04 71.74 515.74 390.45 217.26 (X) = 2526.37 Y(return) -26.25 22.65 17.01 8.24 -4.25 14.24 25.44 7.45 Y =65.09 (Y) 689.06 513.02 292.41 67.89 18.06 202.77 647.19 55.50 (Y) =2486.69 XY 352.8 690.14 247.60 28.51 35.99 323.39 502.69 109.81 XY =2305.44 y -34.38 14.52 8.88 .11 -12.38 6.11 17.37 -.68 y=0 y 1181.98 210.8 78.85 .012 153.2 37.33 301.71 .46 y=1964.34

Table : analysis of sundram mutual fund y=Y-Y X =index return Y = fund return n= no. of years 1 Beta

= n XY ( x y) / n x (x) = 8*2305.44-86.93*65.09/8*2526.37-(86.93) =1.01 2 Standard Deviation = y n Where Y =65.09/8 = 8-13

 = 1964.34/8 = 15.66 3 Alpha = Y-X

Y =28.01/8 = 3.5 X =35.05/8 = 4.38 = 3.5-1.08*4.38 = -1-23 4 Sharpe's index S = RP Rf / p rf= 6.75% p = 22.61 RP= 3.5 Sp= 3.50-6.75/22.61 = -.14 5 TREYNOR Tn = rP rf / = 1.08 rf= 6.75% RP= 3.5 Tn= 3.50-6.75/1.08 = -3 6 JENSEN
p p

Rp = + (rm - rf ) = 1.08 rf= 6.75% = -1.23 rm = 4.38

Rp= -1.23+(4.38-6.75)*1/08=-3.78

PERFORMANCE EVALUATION OF SUNDRAM BSP Equity Fund X(nifty) -13.44 30.47 14.48 3.47 -8.47 22.71 19.76 14.74 X=86.9 3 (X) 180.63 928.42 209.6 12.04 71.74 515.74 390.45 217.26 (X) = 2526.37 (Y) XY 416.16 268.26 308.70 156.37 96.43 141.89 70.22 45.41 3.24 4.86 67.73 119.33 101 52.56 40.32 14.60 (Y)= XY 1103.08 =803.27 Table : analysis of DSB equity fund y=Y-Y X =index return Y = fund return n= no. of years 1. Beta = n XY ( x y) / n x (x) = 8*803.27-25.5*86.93/8*30.17-(30.17) = 1.11 . 2 Standard Deviation = y N Where Y =25.5/8 = 3.18 = 1022.51/8 = 3.99 3 Alpha = Y-X Y(return) -20.40 17.57 9.82 8.38 -1.8 8.23 10.05 -6.35 Y =25.5 y -23.58 14.39 6.64 5.2 -4.98 5.05 6.87 -9.53 0 y 556.01 207.07 44.08 27.04 24.04 25.50 47.19 90.82 y =1022.51

Y =65.09/8 = 8.13 X =86.96/8 = 10.86 = 8.13-1.01*10.86

= -2.83 4 Sharpe's index S = RP Rf / p rf= 6.75% p = 15.66 RP= 8.13 Sp= 8.13-6.75/15.66 = .08 5 TREYNOR Tn = rP rf / = 1.01 rf= 6.75% RP= 8.13 Tn= 8.13-6.75/1.01 = 1.36 6 JENSEN
p p

Rp = + (rm - rf ) = 1.01 rf= 6.75% = -2.83 rm = 10.86

Rp= -2.83+(10.86-6.75)1.01 = 1.32

PERFORMANCE EVALUATION OF RELIGARE Fund X(nifty) -13.44 30.47 14.48 3.47 -8.47 22.71 19.76 14.74 X=86.9 3 (X) 180.63 928.42 209.6 12.04 71.74 515.74 390.45 217.26 (X) = 2526.37 Y(return) -26.36 25.12 18.24 18.46 -6.76 12.60 13.16 -18.85 Y =35.61 (Y) 694.84 631.01 332.69 340.77 45.69 158.76 173.18 355.32 (Y) =2732.26 XY 520.34 815.64 172.36 507.09 32.04 245.32 71.98 424.87 XY= 2789.64 y -30.81 20.67 13.79 14.01 -11.21 7.61 8.71 -23.3 0 y 949.25 429.24 190.16 196.28 125.66 57.91 75.86 542.89 y= 2567.25

Table : analysis of RELIGARE mutual fund y=Y-Y X =index return Y = fund return n= no. of years 1 Beta = n XY ( x y) / n x (x) = 2789.64*8-(87.93*35.61)/8*86.93-(86.93) = .87 2 Standard Deviation = y n Where Y =35.61/8 = 4.45 = 2567.25/8 = 17.91 3 Alpha = Y-X

Y =35.61/8 = 4.45 X =86.93/8 = 10.08 = 4.45-(-.87*5.91) = -.69

Sharpe's index S = RP Rf / p rf= 6.75% p = 17.91 RP= 4.45 Sp= 4.45-6.75/17.91 = -12.8 5 TREYNOR Tn = rP rf / = .87 rf= 6.75% RP= 4.45 Tn= 4.45-6.75/.87 = -2.64 6 JENSEN Rp = + (rm - rf ) = .87 rf= 6.75% = -.69 rm = 5.91 Rp= -.69+(5.91-6.75).87 = -1.42
p p

Comparison of SUNDRAM,DSB,RELIGARE Equity Mutual fund schemes

1. Analysis of Fund On The Bases Of Sharpe's Index MUTUAL FUND DSB BLACK ROCK SUNDRAM BSP RELIGARE SHARPE'S INDEX -1.4 0.8 -12.8 Table 13: SHARPES index table

NAV

SHARPE'S INDEX 0.8 -1.4 -12.8 SHARPE'S INDEX 0 DSB S.BSP RELIGARE Equity Equity Equity Fund (D) Fund (D) PE Fund

Chart 3: Sharpe's Index analysis INTERPRETATION: Sharpe shows the risk adjusted return. Higher the Sharpe Index better the fund. In this case SUNDRAM Equity Fund has the maximum value i.e...8 in comparison to other fund i.e.DSB Equity Fund and RELIGARE Fund. So we can say that the SUNDRAM Equity Fund is the best fund amongst the three funds.

2. Analysis Of Mutual Fund On The Bases Of Treynor's Index MUTUAL FUND DSB BLACK ROCK SUNDRAM BSP RELIGARE TREYNOR'S INDEX -.3 1.36 -2.64

Table 14: TREYNORS Index table

NAV

-.3

TREYNOR INDEX 1.36 -2.64 TREYNOR INDEX

0 DSB S.BSP RELIGARE Equity Equity Equity Fund (D) Fund (D) PE Fund

Chart 4: Treynor's Index analysis INTERPRETATION This shows the risk adjusted return. In this case SUNDRAM Equity Fund (D) have the maximum i.e. 1.36 index value in comparison to the other two i.e. DSB Equity Fund and RELIGARE Equity Fund. So we can say that the UTI Equity Fund is the best fund as it provides the maximum risk premium in comparison to the other two funds 3. Analysis Of Fund On The Bases Of Jensen's Index MUTUAL FUND UTI Equity Fund (D) HDFC Equity Fund (D) Tata Equity PE Fund JENSEN'S INDEX 21.1 28.26 38.84
JENSEN INDEX 1.32 -1.42

NAV

-3.78

JENSEN INDEX

DSB Equity Fund

RELIGARESundram Equity Equity Fund Fund

Chart : Jensen's Index analysis

INTERPRETATION This shows the risk adjusted return. In this case sundran Equity Fund have the maximum i.e. 1.36index value in comparison to the other two i.e. DSB Equity Fund and RELIGARE Equity Fund Fund. So we can say that the SUNDRAM Equity is the best fund as it provides the maximum risk premium in comparison to the other two funds