comparative performance evaluation of selected mutual funds in india

8/2/2019 Comparative Performance Evaluation of Selected Mutual Funds in India

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COMPARATIVE PERFORMANCE EVALUATION OF SELECTED

MUTUAL FUNDS IN INDIA


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CONTENT

Chapter -1 Introduction

Introduction to mutual fund

Organization

types

valuation of securities

Chapter-2 Company profile

Chapter-3 Research Methodology

Significance of the study

Review of existing literature

Focus of the study

Research Design

Methods of Data Collection

Tool & Techniques

Chapter-4 Data Analysis and Interpretation

Chapter-5 Findings and Suggestions

Chapter-6 Bibliography

PERFORMANCE EVALUATION OF SELECTED MUTUAL FUNDS IN

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EXECUTIVE SUMMARY

Mutual Fund industry today, with about 34 players and more than five

hundred schemes, is one of the most preferred investment avenues in India.

However, with a plethora of schemes to choose from, the retail investor faces

problems in selecting funds. Factors such as investment strategy and

management style are qualitative, but the funds record is an important indicator

too. Though past performance alone cannot be indicative of future performance,

it is, frankly, the only quantitative way to judge how good a fund is at present.

Therefore, there is a need to correctly assess the past performance of different

mutual funds.

Worldwide, good mutual fund companies over are known by their AMCs

and this fame is directly linked to their superior stock selection skills. For

mutual funds to grow, AMCs must be held accountable for their selection of

stocks. In other words, there must be some performance indicator that will

reveal the quality of stock selection of various AMCs.

Return alone should not be considered as the basis of measurement of the

performance of a mutual fund scheme, it should also include the risk taken by

the fund manager because different funds will have different levels of risk

attached to them. Risk associated with a fund, in a general, can be defined as

variability or fluctuations in the returns generated by it. The higher the

fluctuations in the returns of a fund during a given period, higher will be the risk

associated with it. These fluctuations in the returns generated by a fund are

resultant of two guiding forces. First, general market fluctuations, which affect

all the securities present in the market, called market risk or systematic risk and

second, fluctuations due to specific securities present in the portfolio of the

fund, called unsystematic risk.


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The Total Risk of a given fund is sum of these two and is measured in

terms of standard deviation of returns of the fund. Systematic risk, on the other

hand, is measured in terms of Beta, which represents fluctuations in the NAV of

the fund vis--vis market. The more responsive the NAV of a mutual fund is to

the changes in the market; higher will be its beta. Beta is calculated by relating

the returns on a mutual fund with the returns in the market. While unsystematic

risk can be diversified through investments in a number of instruments,

systematic risk cannot. By using the risk return relationship, we try to assess the

competitive strength of the mutual funds vis--vis one another in a better way.

In order to determine the risk-adjusted returns of investment portfolios,

several eminent authors have worked since 1960s to develop composite

performance indices to evaluate a portfolio by comparing alternative portfolios

within a particular risk class


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CONCEPT OF MUTUAL FUND

A Mutual Fund is a trust that pools the savings of a number of investors whoshare 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 appreciation realized 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 basket

of securities at a relatively low cost. The flow chart below describes broadly the

working of a mutual fund:

Showing working of Mutual Fund


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ORGANIZATION OF MUTUAL FUND

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 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.

SEBI Regulations require that at least two thirds of the directors of trustee

company or board of trustees must be independent i.e. they should not be

associated with the sponsors. Also, 50% of the directors of AMC must beindependent. All mutual funds are required to be registered with SEBI before

they launch any scheme. The entities involved in mutual fund are also explained

following diagram


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1. Net Asset Value (NAV)

Net Asset Value (NAV) denotes the performance of a particular scheme of a

mutual fund.

Mutual funds invest the money collected from the investors in securities

markets. 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.


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2. Loads or No Load Fund

A load fund is one that charges a percentage of NAV of entry or exit. That is,

each time one buys or sells units in the fund, a charge will be payable. That is,

each time one buys or sells units in the fund, 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 their units for repurchase to the mutual fund will get only Rs.9.90 per

unit. The investors should take the loads into consideration while making

investment as these their yields/ returns. However, the investors should also

consider the performance track record and service standard of the mutual fund

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 the

investors can enter the fund/scheme at NAV and no additional charges are

payable on purchase on purchase or sale of units.

3. Sale or Repurchase/ Redemption Price

The price or NAV a unit holder is charged while investing in an open-ended

scheme is called sales price. It may include sales load, if applicable.

Repurchase or redemption price is the price or NAV at which an open-ended

scheme purchases or redeems its units from the unit holders. It may include exit

load, if applicable

Types of Mutual Funds Schemes in India:-

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


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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.

Overview of existing schemes existed in mutual fund category: -BY

STRUTYRE

1. Open - Ended Schemes:-

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.

2. Close - Ended Schemes:-

These schemes have a pre-specified maturity period. One can invest directly in

the scheme at the time of the initial issue. Depending on the structure of the

scheme there are two exit options available to an investor after the initial offerperiod closes. Investors can transact (buy or sell) the units of the scheme on the

stock exchanges where they are listed. The market price at the stock exchanges

could vary from the net asset value (NAV) of the scheme on account of demand

and supply situation, expectations of unitholder and other market factors.

Alternatively some close-ended schemes provide an additional option of selling

the units directly to the Mutual Fund through periodic repurchase at the schemes

NAV; however one cannot buy units and can only sell units during the liquidity

window. SEBI Regulations ensure that at least one of the two exit routes is

provided to the investor.

3. Interval Schemes:-

Interval Schemes are that scheme, which combines the features of open-ended

and close-ended schemes. The units may be traded on the stock exchange or


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may be open for sale or redemption during pre-determined intervals at NAV

related prices.

Overview of existing schemes existed in mutual fund category:- BY

NATURE

1. Equity fund:-

These funds invest a maximum part of their corpus into equities holdings. The

structure of the fund may vary different for different schemes and the fund

managers outlook on different stocks. The Equity Funds are sub-classified

depending upon their investment objective, as follows:

Diversified Equity Funds

Mid-Cap Funds

Sector Specific Funds

Tax Savings Funds (ELSS)

Equity investments are meant for a longer time horizon, thus Equity funds rank

high on the risk-return matrix.

2. Debt funds:-

The objective of these Funds is to invest in debt papers. Government

authorities, private companies, banks and financial institutions are some of the

major issuers of debt papers. By investing in debt instruments, these funds

ensure low risk and provide stable income to the investors. Debt funds are

further classified as:

Gilt Funds:-


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Invest their corpus in securities issued by Government, popularly known as

Government of India debt papers. These Funds carry zero Default risk but are

associated with Interest Rate risk. These schemes are safer as they invest in

papers backed by Government.

Income Funds:-

Invest a major portion into various debt instruments such as bonds, corporate

debentures and Government securities.

MIPs:-

Invests maximum of their total corpus in debt instruments while they take

minimum exposure in equities. It gets benefit of both equity and debt market.

These scheme ranks slightly high on the risk-return matrix when compared with

other debt schemes.

Short Term Plans (STPs):-

Meant for investment horizon for three to six months. These funds primarily

invest in short term papers like Certificate of Deposits (CDs) and Commercial

Papers (CPs). Some portion of the corpus is also invested in corporate

debentures.

Liquid Funds:-

Also known as Money Market Schemes, These funds provides easy liquidity

and preservation of capital. These schemes invest in short-term instruments like

Treasury Bills, inter-bank call money market, CPs and CDs. These funds are

meant for short-term cash management of corporate houses and are meant for an

investment horizon of 1day to 3 months. These schemes rank low on risk-return


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matrix and are considered to be the safest amongst all categories of mutual

funds.

3. Balanced funds:-

As the name suggest they, are a mix of both equity and debt funds. They invest

in both equities and fixed income securities, which are in line with pre-defined

investment objective of the scheme. These schemes aim to provide investors

with the best of both the worlds. Equity part provides growth and the debt part

provides stability in returns.

Further the mutual funds can be broadly classified on the basis of

investment parameter:-

Each category of funds is backed by an investment philosophy, which is pre-

defined in the objectives of the fund. The investor can align his own investment

needs with the funds objective and invest accordingly.

By investment objective:-

Growth Schemes:-

Growth Schemes are also known as equity schemes. The aim of these schemes

is to provide capital appreciation over medium to long term. These schemes

normally invest a major part of their fund in equities and are willing to bear

short-term decline in value for possible future appreciation.

Income Schemes:-

Income Schemes are also known as debt schemes. The aim of these schemes is

to provide regular and steady income to investors. These schemes generally

invest in fixed income securities such as bonds and corporate debentures.

Capital appreciation in such schemes may be limited.


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Balanced Schemes:-

Balanced Schemes aim to provide both growth and income by periodically

distributing a part of the income and capital gains they earn. These schemes

invest in both shares and fixed income securities, in the proportion indicated in

their offer documents (normally 50:50).

Money Market Schemes:-

Money Market Schemes aim 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.

Other schemes :-

Tax Saving Schemes:-

Tax-saving schemes offer tax rebates to the investors under tax laws prescribed

from time to time. Under Sec.88 of the Income Tax Act, contributions made to

any Equity Linked Savings Scheme (ELSS) are eligible for rebate.

Index Schemes:-

Index schemes attempt to replicate the performance of a particular index such as

the BSE Sensex or the NSE 50. The portfolio of these schemes will consist of

only those stocks that constitute the index. The percentage of each stock to the

total holding will be identical to the stocks index weightage. And hence, the

returns from such schemes would be more or less equivalent to those of the

Index.

Sector Specific Schemes:-


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These are the funds/schemes which invest in the securities of only those sectors

or industries as specified in the offer documents. e.g. 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.

Types of Returns:-

There are three ways, where the total returns provided by mutual funds can be

enjoyed by investors:

Income is earned from dividends on stocks and interest on bonds. A fund

pays out nearly all income it receives over the year to fund owners in the formof a distribution.

If the fund sells securities that have increased in price, the fund has a

capital gain. Most funds also pass on these gains to investors in a distribution.

If fund holdings increase in price but are not sold by the fund manager,

the fund's shares increase in price. You can then sell your mutual fund shares

for a profit. Funds will also usually give you a choice either to receive a check

for distributions or to reinvest the earnings and get more shares.

Pros & cons of investing in mutual funds:-

For investments in mutual fund, one must keep in mind about the Pros and cons

of investments in mutual fund.


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Advantages of Investing Mutual Funds:

1. Professional Management:-

The basic advantage of funds is that, they are professional managed, by well

qualified professional. Investors purchase funds because they do not have the

time or the expertise to manage their own portfolio. A mutual fund is considered

to be relatively less expensive way to make and monitor their investments.

2. Diversification: -

Purchasing units in a mutual fund instead of buying individual stocks or bonds,

the investors risk is spread out and minimized up to certain extent. The idea

behind diversification is to invest in a large number of assets so that a loss in

any particular investment is minimized by gains in others.

3. Economies of Scale :-

Mutual fund buy and sell large amounts of securities at a time, thus help to

reducing transaction costs, and help to bring down the average cost of the unit

for their investors.

4.Liquidity:-

Just like an individual stock, mutual fund also allows investors to liquidate their

holdings as and when they want.

5. Simplicity:-

Investments in mutual fund is considered to be easy, compare to other available

instruments in the market, and the minimum investment is small. Most AMC


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also have automatic purchase plans whereby as little as Rs. 2000, where SIP

start with just Rs.50 per month basis.

Disadvantages of Investing Mutual Funds:-

1. Professional Management:-

Some funds doesnt perform in neither the market, as their management

is not dynamic enough to explore the available opportunity in the market,

thus many investors debate over whether or not the so-called

professionals are any better than mutual fund or investor him self, for

picking up stocks.2. Costs:

The biggest source of AMC income, is generally from the entry & exit

load which they charge from an investors, at the time of purchase. The

mutual fund industries are thus charging extra cost under layers of jargon.

3. Dilution:-

Because funds have small holdings across different companies, high

returns from a few investments often don't make much difference on the

overall return. Dilution is also the result of a successful fund getting too

big. When money pours into funds that have had strong success, the

manager often has trouble finding a good investment for all the new

money.

4. Taxes:-

when making decisions about your money, fund managers don't consideryour personal tax situation. For example, when a fund manager sells a

security, a capital-gain tax is triggered, which affects how profitable the

individual is from the sale. It might have been more advantageous for the

individual to defer the capital gains liability.


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VALUATION OF SCHEME PORTFOLIOS

The Need to Know Valuation Methods

The value of investors holdings of units in a mutual fund is calculated on the

basis of Net Asset Value of investments by the fund. Distributors and investors

need to understand how mutual funds value the securities held by them in their

portfolios, so they can understand how value of the investors holdings in fund

schemes is arrived at.

This knowledge will help them anticipate the fluctuations in the portfolio values

under different market scenarios and recommend or take their decisions

accordingly. This will also help them in comparing the performance of different

fund schemes by reviewing the valuation methods followed by them.

The Regulation of Valuation Practices

As the industry regulator, SEBI aims at protecting the investors by ensuring that

the valuation practices adopted by the AMCs (Asset Management Company)

are

a. Based on the principles of fair valuation of portfolios securities.

b. Are uniform across the fund types and AMCs to the extent possible.

The fair valuation ensures that realistic prices are used to compute the value of

portfolio securities and that there is no manipulation of the values of portfolios.

Uniform valuation practices ensure that everyone can compare the performance

of different schemes and AMCs without worrying about whether the fund

valuation practices may be different from one scheme to another.


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AMCs therefore adopt uniform portfolio valuation practices to the extent

possible.

SEBI in turn regulates and

a. Prescribes detailed valuation methodologies in its Fund regulations

b. Mandates disclosure of valuation methods used for information of

investor

Basic Valuation Principles:

Fair value

It means value of security that is realistic and not based on any arbitrary

methodology. Fair value may be determined based either on purchase cost,

market price or on some accepted principles.

Fair value of Traded Securities

Mutual funds invest essentially in marketable securities traded either on the

stock exchange or on to the money markets. The preference for traded securities

is given to ensure liquidity of the investments- ease with which the securities

can be sold. The second reason for the preference for traded securities is to

ensure that these securities receive fair valuation at market prices that are

publicly available. This valuation process is known as mark to market-

bringing the value of the securities in the portfolio to reflect their market value.

Fair value of Illiquid Securities

While fund managers always strive to include only traded or liquid securities in

their portfolios market conditions often result in some securities not being

traded in the market. Valuation of such non-traded securities poses a problem of

how to determine their fair value. Regulators prescribe methods wherever


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possible or require the Trustees to determine the right methodology and disclose

to the extent possible.

Valuation date

The date on which the fund calculates the value of its portfolio and the NAV is

known as the valuation date. Where funds value their investments on a mark to

market basis, the valuation date is the date on which the traded price of a

security is available. For non-traded security it means the date that is selected

and used for the valuation in accordance with some principles and regulations.

Valuation of Equity Securities

The valuation principle to be used depends also upon whether a security is

traded in the market or not.

Traded Securities

For traded securities the basis of valuation is mark to market. For this purpose,

on the valuation date, once the market price is obtained the fund will multiply

its current holdings in number of shares by the applicable market price to get the

mark to market value. The market price to be used for valuation is determined

as follows:

a. An equity security is valued at the last quoted closing price on the stock

exchange where it is principally traded.

b. If no trade is reported on principal stock exchange, the last quoted price

on any other recognized stock exchange may be used

c. If an equity security is not traded on the stock exchange on a particular

valuation day, the value at which it was traded on the selected/other stock

exchange on the earliest previous day, may be used, provided such date is

not more than 30 days prior to the valuation date.


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Thinly Traded Security

For some securities market prices is not available easily. It becomes difficult in

such cases to apply the principle of mark to market. The reason for non-

availability of market price is the infrequency or small volume of trading in a

security. Such securities are then considered thinly traded and SEBI give some

freedom to AMCs to use their own methods of valuation in such cases.

SEBI defines thinly traded security as:

An equity/convertible debenture/warrant is considered as a thinly traded

security if trading value in a month is less than Rs.5 lakhs and the total volume

is less than 50000 shares.

Then market price or free valuation principle is used as follows:

a. In case trading I the security is suspended up to 30 days, then the last

traded price is used.

b. If trading in the scrip is suspended for more than 30 days, then the AMC

can decide the valuation norms to be followed and such norms would be

documented and recorded.

Non-Traded Securities

When a security is not traded on any stock exchange for 30 days prior to the

valuation date, it becomes a non-traded security.

Valuation of Non-traded/Thinly traded securities

Both non-traded and thinly traded securities are to be valued in good faith by

the AMC on the basis of the valuation principles lay down below:-


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a. Based on the latest available Balance sheet, Net worth per share is

calculated. [Net worth per share= (Share capital+ Reserves- Miscellaneous

expenditure and Debit balance of P&L A/c)/ No. of paid up shares.]

b. Then value per share is calculated using the Capitalized Earnings Method.

The formula used is (Earnings per share *applicable P/E multiple). For this

purpose, average P/E ratio for the industry is to be based upon BSE or NSE

data. PER should be followed consistently. The identified PER has to be

discounted by 75% and only 25% of the industry average P/E shall be taken

as the applicable P/E multiple. Earnings per share of the latest audited annual

accounts are considered for this purpose.

c. The value per share based on the net worth method and capitalized earnings

method, calculated as above, is averaged and further discounted by 10% for

illiquidity, to arrive at the value per share.

d. In case the EPS is negative, EPS value for that year is taken a zero for

arriving at capitalized earnings.

e. Where the latest balance sheet of the company is not available within nine

months from the close of the year, unless the accounting year is changed, the

shares of such companies shall be valued at zero.

f. In case an individual security accounts for more than 5% of the total assets

of the scheme, an independent valuer has to be appointed for the valuation.

Example:

1. Assume that we hold an engineering companys share that is not quoted on

the market, but we know that the company makes Rs.2 EPS and has a net

worth of Rs.8 per paid up share.


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2. We can use other traded engineering companies industry average for basing

the applicable P/E multiple say Rs.12.

3. With a 75% discount, the P/E multiple applicable to our untraded share is 3

(12*25%).

4. We can use the multiple of 3 to obtain our untraded shares price by

multiplying our companys Rs.2 EPS with the applicable PER and get the

valuation price of Rs.6.

5. This is further averaged with the companys net worth of 8 to give a value of

Rs. 7 per share [(6+8)/2].

6. Since our share is not liquid we must discount 7 by 10% to give a valuation

of Rs. 6.30 per share.

Valuation of Debt Securities:

Traded Securities-

A debt security may be traded on a stock exchange (corporate securities) or in

the interbank market (government security). If a security is traded on the stock

exchange then again publicly available and quoted market prices are used for its

valuation. If a debt security (other than govt. security) is not traded on any stock

exchange on a particular valuation day, the value at which it was traded on the

principal stock exchange on the earliest previous day, may be used, provided

such date is not more than 15 days prior to the valuation date. If a debt security

(other than govt. security) is purchased by way of private placement, the price at

which it was bought may be used for a period of 15 days beginning from the

date of purchase.

Thinly Traded Securities-


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These needs to be identified and then valued especially. A debt security (other

than govt. security) is considered as a thinly traded security if on the valuation

date there is no individual trade on that security in marketable lots on the

principal stock exchange or any other stock exchange.

Valuation of Non-traded/Thinly traded security

Valuation norms of such securities depend upon their maturity. Thus,

1. Money Market Securities and Debt Securities up to 182 days to maturity-

Non-traded debt securities with residual maturity of up to 182 days should bevalued on the same basis as money market securities. These securities are

valued on the basis of amortization of purchase cost plus accrued interest till

the beginning of the purchase plus the difference between the redemption

value and the purchase cost that is spread uniformly over the remaining

maturity period of the investments.

2. Non- traded, Non-Government, debt instruments over 182 days to maturity-All non-traded debt securities including asset backed paper with maturity of

over 182 days are valued in good faith by the AMC I accordance with the

detailed valuation principles laid by SEBI.

a. All Non-traded Debt Securities are classified into Investment grade and

Non-Investment grade securities based on their credit rating. The non-

investment grade securities are further classified as Performing and

Non Performing assets.

b. All Non-Government, investment grade debt securities, classified as non-

traded, are valued on yield to maturity (YTM) basis as described later.

c. All Non-Government, non-investment grade, performing debt securities

are valued at a discount of 25% to the face value.


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d. All Non-Government, non-investment grade, non- performing debt

securities would be valued based on the provisioning norms.

Computation Methodology for Yields used for valuations of Debt

Securities:

The approach to valuation of non-traded debt security is based on the concept of

spreads over the benchmark rate to arrive at the yields for pricing of non-

traded security. The process is as follows-

Step A:

A Risk Free Benchmark Yield is calculated, using the government securities as

the base as they are traded regularly, free from credit risk and traded across

different maturity spectrums every week. All securities with minimum traded

value of Rs. 1 crore are grouped by maturities called duration buckets 0.5 to

1 year, 1 to2 year, 2/3 years, 3/4,4/5,5/4,5/6 and over 6 years. Then, volume

weighted yields are calculated for each bucket. This is done weekly or whenever

the interest rates change.

Step B:

Expected yield on non-govt. securities is generally higher than the

corresponding maturity govt. security to reflect the higher credit risk on non-

govt. securities.

The differences between the two yields are the spread over the benchmark

yield. Spreads are determined using the market prices of non-govt. securities

and comparing them with the yields on govt. securities. The spreads are built

only for investment grade corporate paper which is grouped credit rating within

each of the 7 duration buckets.

Step C:


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Yields to be used for valuation are further adjusted to reflect the illiquidity risk

of a security. The yields have to be marked up/marked down to account for the

illiquidity risk, promoter background, finance company risk and the issuer class

risk. As illiquidity risk would be higher for non-rated securities, higher expected

yield would be used to value non-rated securities as compared to rated

securities. For securities rated by external agencies, SEBI permits a

discretionary discount up to 2 years and 0.75% for those of higher duration. The

AMC has to assign an internal credit rating to non rated securities but with

mandatory lower discounts or premiums.

Step D:

The yields so arrived for all categories of securities are used to price the

portfolio. If yields for any category of securities cannot be obtained using any or

all of the above steps, then a fund may use the credit spreads from trades on

appropriate stock exchange for the relevant rating category over the AAA

securities trades.

Valuation of securities with Call/Put Option:

a. Securities with Call option-

An issuer may call a debt security and repay before maturity. Such securities

with call option have to be valued at the lower of two values- value obtained

by valuing the security to final maturity and that obtained valuing the

security to call option date.

b. Securities with Put option-


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Where investors have the option to redeem earlier than maturity. Such

securities with put option shall be valued at the higher of the values obtained

the security to final maturity and valuing the security to the put option date.

Valuation and Disclosure of Illiquid Securities:SEBI stipulates that-

a. Aggregate value of illiquid securities of a scheme, defined as non-traded,

thinly traded and unlisted equity shares shall not exceed 15% of the total

assets of an open-end scheme and 20% of a closed-end fund. Illiquid assets

held in excess of the limits have to be assigned zero value.

b. All mutual funds have to disclose s on March 31 and September 30 the

scheme-wise total illiquid securities in value and percentage of the net assets

while making disclosures of half yearly portfolios to the unit holders.

c. Mutual funds are no allowed to transfer illiquid securities internally among

their schemes from October 1, 2000.

Risk, Return and Performance:

Rate of return is computed as: (Income earned/Amount invested)*100.

This number can be annualized by multiplying the result by the factor 12/n,

where n is the number of months in the holding period. If the holding period is

in days, the above factor will be 365/n, where n is the number of days in the

holding period.

Change in NAV method of calculating return is applicable to growth funds

and funds with no income distribution.

Change in NAV method computes return as follows:


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(NAV at the end of the holding period NAV at the beginning of the holding

period)/NAV at the beginning of the period. Return is then multiplied by 100

and annualized)

E.g.) Annualizing the Rate of Return

If NAV on Jan 1, 2001 was Rs. 12.75 & June 30, 2001 was Rs. 14.35

% age change in NAV = (14.35 12.75)/12.75 x 100 = 12.55%

Annualized return = 12.55 x 12/6 = 25.10%

Percentage Change in NAV:

Assume that change in NAV is the only source of return.

Example:

NAV of a fund was Rs. 23.45 at the beginning of a year

Rs. 27.65 at the end of the year.

%age change in NAV = (27.65 23.45)/23.45 *100 = 17.91%

The total return with re-investment method or the ROI method is superior to

all these methods. It considers dividend and assumes that dividend is re-

invested at the ex-dividend NAV.

Total Return or ROI Method computes return as follows:

[(Value of holdings at the end of the period - value of holdings at the

beginning of the period)/ value of holdings at the beginning of the period] x

100.

Value of holdings at the beginning of the period = number of units at the

beginning x begin NAV.


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Value of holdings end of the period = (number of units held at the beginning

+ number of units re-invested) x end NAV.

Number of units re-invested = dividends/ex dividend NAV.

Expense ratio is an indicator of efficiency and very crucial in a bond fund.

Income ratio is the ratio of net investment income by net assets. This ratio is

important for fund earning regular income, such as bond funds, and not for

funds with growth objective, investing for capital appreciation.

Portfolio turnover rate refers to the ratio of amount of sales or purchases(whichever is less) to the net assets of the fund.

Higher the turnover ratio, greater is the amount of churning of assets done by

the fund manager.

High turnover ratio can also mean higher transaction cost. This ratio is

relevant for actively managed equity portfolios.

If the turnover of a fund is 200%, on average every investment is held for a

period of 6 months.

Risk arises when actual returns are different from expected returns.

Standard deviation is an important measure of total risk.

Beta co-efficient is a measure of market risk. The quality of beta depends on

ex-marks.

If ex-marks are high beta is more reliable.

Ex-marks are an indication of extent of correlation with market index. Index

funds have ex-marks of 100%.

Comparable passive portfolio is used as benchmark.


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Usually a market index is used as a benchmark.

Compare both risk and return, over the same period for the fund and the

benchmark.

Risk-adjusted return is the return per unit of risk.

Comparisons are usually done

With a market index

With funds from the same peer group

With other similar products in which investors invest their funds

When comparing fund performance with peer group funds, size and

composition of the portfolios should be comparable.

Treynor and Sharpe ratios are used for evaluating performance of

funds.

The quality of beta depends on ex-marks.

While fund managers are under pressure to increase their asset base, they are

confident of giving reasonable returns in the long term.

While that is a comforting thought for retail investors, fund managers agree that

it may be difficult to achieve the same levels of outperformance as in the past.

While fund managers are under pressure to increase their asset base, they are

confident of giving reasonable returns in the long term. However, they warn

against high expectations. "Investors should not expect equity funds to give 90-

100 per cent returns every year. Broad markets should give a CAGR return in

the range of 12-15 per cent over the next two-three years".


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The mutual fund industry shrugged off the recession blues and added over Rs2.5

lakh crore to its assets under management in fiscal 2009-10 to take its AUM to

Rs7.4 lakh crore. The average AUM of the fund houses rose Rs 2.5 lakh crore

or 51% in the last fiscal year, from Rs 4.9 lakh crore at the end of 2009-10

fiscal, according ti the data available with the AMFI.

Reliance MF maintained its position as the top fund house with a hefty 36%

increase in AMU to Rs 110413 crore at the end of march. The other leading

fund houses HDFC MF, ICICI MF and UTI MF-also saw an increase in their

average AUM .During the fiscal,HDFC MF rose by 54% to 88779 crore a and

UTI MF AUMs stood at Rs 80217 crore at the end of march higher by 65%

year on year.

Analysts believe the growth in the corpus in 2009-10 fiscal was driven mainly

by a huge increase in debt inflows as banks parked money with MFs in the

time of slow credit off take. Till February 2010 , the total investment in income

or debt schemes of MFs was at Rs 2.61 lakh crore, while equity schemes saw

net inflow of Rs 2611 crore.


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Reliance mutual fund:-

Reliance Mutual Fund, a part of the Reliance - Anil Dhirubhai Ambani Group,

is one of the fastest growing mutual funds in the country. RMF offers investors

a well-rounded portfolio of products to meet varying investor requirements and

has presence in 159 cities across the country. Reliance Mutual Fund constantly

endeavors to launch innovative products and customer service initiatives to

increase value to investors. "Reliance Mutual Fund schemes are managed by

Reliance Capital Asset Management Limited., a subsidiary of Reliance Capital

Limited, which holds 93.37% of the paid-up capital of RCAM, the balance paid

up capital being held by minority shareholders.

Sponsor: Reliance Capital Limited

Trustee: Reliance Capital Trustee Co. Limited

Investment Manager: Reliance Capital Asset Management Limited

Statutory Details:-

The Sponsor, the Trustee and the Investment Manager are incorporated under

the 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. Companies Act 1956.


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Tata mutual fund

Backed by one of the most trusted and valued brands in India, Tata Mutual

Fund has earned the trust of lakhs of investors with its consistent performance

and world-class service.

Tata Mutual Fund manages around Rs. 21,935.00 crores (average AUM for the

month) as on March 31, 2010 worth of assets across its varied offerings. Tata

Mutual Fund offers an investment option for everyone, whether you are a

businessman or salaried professional, a retired person or housewife, an

aggressive investor or a conservative capital builder.

The Tata Asset Management philosophy is centered on seeking consistent, long-

term results. Tata Asset Management aims at overall excellence, within the

framework of transparent and rigorous risk controls.

We constantly benchmark our efforts against these tenets of performance:

Consistency :-

We strive to deliver consistent results through our value-based investing

methodology, keeping alive the credo of the late doyen of the Tata Group, Mr.

J.R.D. Tata, that money received from the people should go back to them

several times over.

Flexibility :-

Tata Mutual Fund offers investors a broad range of managed investment

products in various asset classes and risk parameters, with operational flexibility

to suit their varied investment needs.


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Stability:-

Our commitment to the highest quality of service and integrity is thefoundation upon which we build trust with our clients.

Service:-

We offer a wide range of services to assist investors have a fulfilling and

rewarding financial planning experience with us. We have designed our services

keeping in mind the needs of our investors, giving them a smooth and hassle-

free financial planning process.

A Proud Pedigree:-

Tata Asset Management Ltd is a part of the Tata group, one of India's largest

and most respected industrial groups, renowned for its adherence to business

ethics.

The Group has always believed in returning wealth to the society that it serves.

Thus, nearly two-thirds of the equity of Tata Sons, the Group's promoter

company, is held by philanthropic trusts, which have created a host of national

institutions in the natural sciences, medical care, energy and the arts. The trusts

also give substantial annual grants and endowments to deserving individuals

and institutions in the areas of education, healthcare and social uplift.

By combining ethical values with business acumen, globalization with national

interests and core businesses with emerging ones, the Tata Group aims to be the

largest and most respected global brand from India. This way, it fulfils its long-

standing commitment to improving the quality of life of its stakeholders.


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Leadership With Trust:-

Our purpose at the Tata Group is to improve the quality of life of the

communities we serve. We do this by attaining leadership positions in sectors of

national economic significance, to which the Group brings a unique set of

capabilities. This requires us to grow aggressively in focused areas of business.

Our heritage of returning to society what we earn evokes trust among

consumers, employees, shareholders and the community. It is an ongoing

process, continuously enriched by the formalisation of the high standards of

behaviour that we expect from employees and companies.

The Tata name is a unique asset, representing leadership with trust. Leveraging

this asset to enhance Group synergy and becoming globally competitive is the

route to sustained growth and long-term success.


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UTI TRUSTE OF UNIT:-

Vision

To be the most Preferred Mutual Fund.

Our mission is to make UTI Mutual Fund:

The most trusted brand, admired by all stakeholders

The largest and most efficient money manager with global presence

The best in class customer service provider

The most preferred employer

The most innovative and best wealth creator

A socially responsible organization known for best corporate governance

Genesis

January 14, 2003 is when UTI Mutual Fund started to pave its path following

the vision of UTI Asset Management Co. Ltd. (UTIAMC), which was appointed

by UTI Trustee Co, Pvt. Ltd. for managing the schemes of UTI Mutual Fund

and the schemes transferred/migrated from the erstwhile Unit Trust of India.

UTI AMC provides professionally managed back office support for all business

services of UTI Mutual Fund in accordance with the provisions of the

Investment Management Agreement, the Trust Deed, the SEBI (Mutual Funds)

Regulations and the objectives of the schemes. State-of-the-art systems and

communications are in place to ensure a seamless flow across the various

activities undertaken by UTI MF.


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Since February 3, 2004, UTI AMC is also a registered portfolio manager under

the SEBI (Portfolio Managers) Regulations, 1993 for undertaking portfolio

management services. UTI AMC also acts as the manager and marketer to

offshore funds through its 100 % subsidiary, UTI International Limited,

registered in Guernsey, Channel Islands.

Assets Under Management

UTIAMC presently manages a corpus of over Rs. 80,218 Crores* as on 31st

March 2010 (source: www.amfiindia.com). UTI Mutual Fund has a track record

of managing a variety of schemes catering to the needs of every class ofcitizens. It has a nationwide network consisting 141 UTI Financial Centres

(UFCs) and UTI International offices in London, Dubai and Bahrain.

UTIAMC has a well-qualified, professional fund management team, which has

been fully empowered to manage funds with greater efficiency and

accountability in the sole interest of the unit holders. The fund managers are

ably supported by a strong in-house securities research department. To ensureinvestors interests, a risk management department is also in operation.

Reliability

UTIMF has consistently reset and upgraded transparency standards. All the

branches, UFCs and registrar offices are connected on a robust IT network to

ensure cost-effective quick and efficient service. All these have evolved UTIMF

to position as a dynamic, responsive, restructured, efficient and transparent

entity, fully compliant with SEBI regulations


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Significance of the study:-

The significance of the study for performance evaluation is logicallyinterpretation of the evaluation of the different fund in the market. Both the

private and public sector fund are available with their scheme like equity based

scheme, debt fund, tax, saving, gilt and other scheme as per sector wise. But the

study mainly concentrate on the fair evaluation of fund so that investor can

know the changes in the net assets value and the avenue where are consider to

invest for return. It increases the confidence of the investor in the fund as well

as the knowledge of the investment activities in the market.

Review of existing literature:-

Mainly number of survey conduct by number of fund holder, number of

magazine also comes with the new data and the previous journals of different

people are considered to review the data. Number of internet site also provide

the old study and about the performance of the value of the fund. To know the

present performance of the scheme of the company their facts sheet was gone

through. Various newspapers also read to get the secondary data and

information.

Focus of the study

The main focus of the study is on the performance measurement and evaluationof the fund so that a investor can calculate is future oriented return from the

market and can know the relation between risk and return of the fund. The main

attention on the weekly, monthly, and yearly performance of the fund and their

evaluation


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Limitation of the study

1 The main limitation in the study that the data is taken as secondary

2 The data are uses on the weekly, monthly and annually not daily

3 There is time constraint so that the study was no go deeply as expected

4 Only limited source of information is available like newspaper, internet,

magazine, and research paper on the net and only little information about AMC

through internet and books

5 Expected return not always based on past performance, so study is not the end

of conclusion

6 Limited knowledge to evaluate the value of different company may be reliable

for other study and benefits.

7 Some scheme are not comparable because are different then other companies

scheme

8 Some scheme are new and not past record for study.

Method of Data Collection:-

1. Data collection is secondary in nature

2. For the evaluation of fund performance and use of different newspaper,

magazine,

3. Use of internet mostly, and help of friend to collect the data is the essence of

the collection.

TOOL AND TECHNIQUE USED FOR STUDY


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The most important and widely used measures of performance are:

1. The Treynor Measure

2. The Sharpe Measure

3. Jenson Model

4. Fama Model

The Treynor Measure

Developed by Jack Treynor, this performance measure evaluates funds on the

basis of Treynor's Index. This Index is a ratio of return generated by the fund

over and above risk free rate of return (generally taken to be the return on

securities backed by the government, as there is no credit risk associated),

during a given period and systematic risk associated with it (beta).

Symbolically, it can be represented as

Treynor's Index (Ti) = (Ri - Rf)/Bi.

Where, Ri represents return on fund, Rf is risk free rate of return and Bi is beta

of the fund.

All risk-averse investors would like to maximize this value. While a high and

positive Treynor's Index shows a superior risk-adjusted performance of a fund, a

low and negative Treynor's Index is an indication of unfavorable performance.

The Sharpe Measure

In this model, performance of a fund is evaluated on the basis of Sharpe Ratio,

which is a ratio of returns generated by the fund over and above risk free rate of

return and the total risk associated with it. According to Sharpe, it is the total

risk of the fund that the investors are concerned about. So, the model evaluates


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funds on the basis of reward per unit of total risk. Symbolically, it can be

written as:

Sharpe Index (Si) = (Ri - Rf)/Si

Where, Si is standard deviation of the fund.

While a high and positive Sharpe Ratio shows a superior risk-adjusted

performance of a fund, a low and negative Sharpe Ratio is an indication of

unfavorable performance.

Comparison of Sharpe and Treynor

Sharpe and Treynor measures are similar in a way, since they both divide the

risk premium by a numerical risk measure. The total risk is appropriate when

we are evaluating the risk return relationship for well-diversified portfolios. On

the other hand, the systematic risk is the relevant measure of risk when we are

evaluating less than fully diversified portfolios or individual stocks. For a well-

diversified portfolio the total risk is equal to systematic risk. Rankings based ontotal risk (Sharpe measure) and systematic risk (Treynor measure) should be

identical for a well-diversified portfolio, as the total risk is reduced to

systematic risk. Therefore, a poorly diversified fund that ranks higher on

Treynor measure, compared with another fund that is highly diversified, will

rank lower on Sharpe Measure.

Jenson Model

Jenson's model proposes another risk adjusted performance measure. This

measure was developed by Michael Jenson and is sometimes referred to as the

Differential Return Method. This measure involves evaluation of the returns that

the fund has generated vs. the returns actually expected out of the fund given the

level of its systematic risk. The surplus between the two returns is called Alpha,

which measures the performance of a fund compared with the actual returns


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over the period. Required return of a fund at a given level of risk (Bi) can be

calculated as:

Ri = Rf + Bi (Rm - Rf)

Where, Rm is average market return during the given period. After calculating

it, alpha can be obtained by subtracting required return from the actual return of

the fund.

Higher alpha represents superior performance of the fund and vice versa.

Limitation of this model is that it considers only systematic risk not the entire

risk associated with the fund and an ordinary investor can not mitigate

unsystematic risk, as his knowledge of market is primitive.

Fama Model

The Eugene Fama model is an extension of Jenson model. This model compares

the performance, measured in terms of returns, of a fund with the required

return commensurate with the total risk associated with it. The differencebetween these two is taken as a measure of the performance of the fund and is

called net selectivity.

The net selectivity represents the stock selection skill of the fund manager, as it

is the excess return over and above the return required to compensate for the

total risk taken by the fund manager. Higher value of which indicates that fund

manager has earned returns well above the return commensurate with the level

of risk taken by him.

Required return can be calculated as: Ri = Rf + Si/Sm*(Rm - Rf)

Where, Sm is standard deviation of market returns. The net selectivity is then

calculated by subtracting this required return from the actual return of the fund.


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Among the above performance measures, two models namely, Treynor measure

and Jenson model use systematic risk based on the premise that the

unsystematic risk is diversifiable. These models are suitable for large investors

like institutional investors with high risk taking capacities as they do not face

paucity of funds and can invest in a number of options to dilute some risks. For

them, a portfolio can be spread across a number of stocks and sectors. However,

Sharpe measure and Fama model that consider the entire risk associated with

fund are suitable for small investors, as the ordinary investor lacks the necessary

skill and resources to diversified. Moreover, the selection of the fund on the

basis of superior stock selection ability of the fund manager will also help in

safeguarding the money invested to a great extent. The investment in funds that

have generated big returns at higher levels of risks leaves the money all the

more prone to risks of all kinds that may exceed the individual investors' risk

appetite.

Evaluation of the mutual fund scheme on the bases of fund return and standard

deviation and variance & co-variance of the fund.


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NAME OF THE SCHME FUND

RETURN

STANDARD

DEVIATIOO

N

VARIANC

E

CO-

VARIANC

E

CANBANK INDEX-GROWTH -0.000484 0.003922 0.000015 8.098889

GIC BALANCE FUND 0.001069 0.002376 0.000006 2.22204

LIC G SEC FUND-DIVIDENT 0.000056 0.001152 0.000001 20.64

UTI BALANCE FUND-GROWTH 0.000328 0.002871 0.000008 8.753963

SBI MAGNUM BALANCE

FUND-DIVIDENT

0.003343 0.003343 0.000011 3.051424

ESCORTS BALANCED FUND-

DIVIDENT

0.001927 0.075353 0.005678 39.11232

PRUDENTIAL ICICI BALANCE-

GROWTH

0.001004 0.0029 0.000008 2.88808

BIRLA BOND INDEX FUND-

GROWTH

0.000125 0.000376 0 3.006045

CHOLA GROWTH FUND-

GROWTH

0.000908 0.005401 0.000029 5.951515

ING VYSYA LIQUID FUND-

GROWTH

0.000263 0.000338 0 1.284391

RELIANCE GROWTH-GROWTH 0.01095 0.042239 0.001784 3.857559

SAHARA TAXGAIN-GROWTH 0.00588 0.015326 0.000235 2.60629

SUNDARAM MONEY FUND-

GROWTH

0.000642 0.002047 0.000004 3.19022

JM MIP FUND-MONTHLY

DIVIDENT

0.000035 0.000009 0 0.257009

FRANKLIN FMCG FUND-

DIVIDENT

0.001107 0.002448 0.000006 2.212039

GRINDLAYS CASH FUND- 0.000203 0.000115 0 0.568048


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The square of standard deviation of returns gives the Variance. Coefficient of

variation (COV) is found by dividing standard deviation by mean returns.

return (NAVt- NAVt-1)/ NAVt-1

Where NAVt is Net asset value of a mutual fund or Index for a day t ,NAVt-1,

is Net asset value of annual fund or Index for day (t-1). Returns on each of these

seventeen mutual funds and also for each of the two indices is given in the

following table.

For the S & P Index, the returns are

Return= Indext- Indext-1/ Indext-1All return are calculated on the

bases of S &p index bases, it consist both private & public sector scheme. there

is 5000 scheme but only 17 scheme to consider for study because of time

constraints.

Detailed study of this fund comes under data interpretation and analysis of thefund further in this project


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RETURNS OF ONE YEAR FROM 15 MARCH TO 15 APRIL OF THE

SELECT MUTUAL FUND


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TOP 15 OPEN ENDED -EQUITY FUNDS - PERIOD (LAST 3 YEARS)


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Rank Scheme Name Date NAV

(Rs.)

Last

3

Years

Since Inception

1 Reliance Pharma

Fund - Growth

Apr 12 , 2010 49.23 34.5 31.33

2 Reliance Diversified

Power Sector Fund -

Growth

Apr 12 , 2010 80.86 32.36 42.43

3 Reliance Banking

Fund - Growth

Apr 12 , 2010 81.35 31.88 35.75

4 IDFC Premier Equity

Fund - Plan A -

Growth

Apr 12 , 2010 28.92 28.96 26.39

5 Reliance Regular

Savings Fund -

Equity - Growth

Apr 12 , 2010 29.44 26.82 24.97

6 Taurus Taxshield -

Growth

Apr 12 , 2010 32.44 26.28 14.18

7 Sundaram BNPParibas SMILE Fund

- Growth

Apr 12 , 2010 32.02 24.04 25.41

8 ICICI Prudential

Discovery Fund - IP-

Growth

Apr 12 , 2010 19.68 23.53 18.04


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9 Franklin Pharma

Fund - Growth

Apr 12 , 2010 54.76 23.48 16.67

10 Birla Sun Life

Dividend Yield Plus

- Growth

Apr 12 , 2010 74.44 23.08 32.67

11 UTI Thematic

Banking Sector Fund

- Growth

Apr 12 , 2010 36.2 22.84 23.72

12 ING Dividend Yield

Fund - Growth

Apr 12 , 2010 20.57 22.74 17.6

13 UTI Dividend Yield

Fund - Growth

Apr 12 , 2010 28.69 22.73 24.32

14 UTI Opportunities

Fund - Growth

Apr 12 , 2010 24.42 22.63 20.93

15 Templeton India

Growth Fund -

Growth

Apr 12 , 2010 115.7

1

22.61 19.88

ICRA 7-STAR GOLD AWARD WINNERS 2009 - ONE YEAR

PERFORMANCE


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56/80

Scheme Name Ranking Category Award

DSP Black Rock Balanced

Fund

Open Ended Balanced

Fortis Flexi Debt Fund Open Ended Debt - Long

Term

Birla Sun Life Dynamic

Bond Fund

Open Ended Debt - Short

Term

UTI MNC Fund Open Ended Diversified

Equity - Aggressive

UTI Contra Fund Open Ended Diversified

Equity Defensive

UTI Nifty Fund Open Ended Equity Index

Fidelity Tax Advantage

Fund

Open Ended Equity Linked

Savings Scheme (ELSS)

UTI Floating Rate Fund -

Short Term

Open Ended Floating Rate

Fund

ICICI Prudential Gilt Fund

Investment Plan

Open Ended Gilt

Kotak Liquid - Regular Plan Open Ended Liquid

LIC MF Liquid Plus Fund Open Ended Liquid Plus

Reliance Liquid Plus -

Institutional Plan

Open Ended Liquid Plus -

Institutional Plan


INDIA

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57/80

DWS Money Plus

Advantage Fund

Open Ended Marginal Equity

The ranks assigned by ICRA/ICRA Online are based on an objective analysis of

information obtained from the entities concerned as also other sources

considered reliable by ICRA/ICRA Online. However, the ranks must be

construed solely as statements of opinion and ICRA/ICRA Online shall not be

liable for any losses incurred by any user from any use of the ranks. Also, the

ranks are neither a certificate of any statutory compliance nor any guarantee on

the future performance of the ranked entities/schemes.

An entity wishing to use the ICRA Online Mutual Funds Rankings for any

publicity or in its prospectus / offer document / promotional literature /

advertisement or wishing to re-disseminate these rankings may do so only after

obtaining the written permission of ICRA / ICRA Online.


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58/80

PERFORMANCE OF TATA MUTUAL FUND

Scheme Name7

days

14

days

1

month

3

month

6

month

1

year

3

year

Tata Equity

Opportunities Fund

- Growth

0.02 0.15 2.51 2.42 12.88 93.31 11.23

Tata Growth Fund -

Growth1.02 1.11 5.05 4.66 10.28 91.82 8.10

Tata Liquid Fund -

Super High

Investment Plan -

Growth

0.09 0.18 0.41 1.05 2.08 4.35 7.04

Tata Gilt High

Investment Fund -

Growth

0.48 0.42 0.66 0.37 2.29 -2.01 5.22

Tata Monthly

Income Fund -

Growth

0.19 0.36 0.76 0.41 2.69 5.44 7.19

Tata Balanced Fund

- Growth0.52 0.91 2.31 4.13 11.67 69.02 14.62

Tata Pure Equity

Fund - Growth0.11 0.09 2.35 3.21 11.41 76.32 14.12


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59/80

Tata Income Fund -

Growth1.02 0.81 1.01 0.61 2.17 -1.26 4.83

TATA mutual fund growth plan which is considered for capital

appreciation in the value of the unit of the fund showing a good growth in

opportunities fund-growth scheme like 3 yearly growth is 11.23 and one yearly

growth is 93.31 and other scheme like tata growth fund showing 91.82 growth

in the fund and scheme tata pure equity fund-growth is giving 76.32% yearly

return and 14.12% 3 yearly growth in the return. So tata growth fund paying a

good return to investors.

Tata Select Equity Fund -

Appreciation-0.38 -0.29

2.0

2

3.8

5

16.2

493.64 8.53

Tata Tax Saving Fund -0.03 -0.142.0

4

2.4

89.47 72.33 8.14

Tata Life Sciences and Technology

Fund - Appreciation-0.66 0.66

2.5

1

5.8

6

11.0

7

107.1

8

10.3

5

Tata Liquid Fund - Regular

Investment Plan - Growth0.08 0.17

0.3

8

0.9

51.88 3.96 6.69

Tata Gilt Securities Fund - Growth 0.48 0.420.6

6

0.3

72.27 -2.04 5.21

Tata Short Term Bond Fund -

Growth0.17 0.25

0.4

7

1.1

42.24 3.91 8.73


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60/80

Tata Income Plus Fund - Plan A -

Growth0.06 0.11

0.2

8

0.7

41.48 2.13 4.78

Tata Income Plus Fund - Plan B -

Growth0.06 0.11

0.2

8

0.7

41.48 2.11 4.79

Tata Index Fund nn- Nifty Plan -

Option A-0.01 -0.59

1.2

3

4.3