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COMPARATIVE PERFORMANCE EVALUATION OF SELECTED
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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
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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
PERFORMANCE EVALUATION OF SELECTED MUTUAL FUNDS IN
INDIA
54
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8/2/2019 Comparative Performance Evaluation of Selected Mutual Funds in India
55/80
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
PERFORMANCE EVALUATION OF SELECTED MUTUAL FUNDS IN
INDIA
55
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8/2/2019 Comparative Performance Evaluation of Selected Mutual Funds in India
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
PERFORMANCE EVALUATION OF SELECTED MUTUAL FUNDS IN
INDIA
56
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8/2/2019 Comparative Performance Evaluation of Selected Mutual Funds in India
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.
PERFORMANCE EVALUATION OF SELECTED MUTUAL FUNDS IN
INDIA
57
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8/2/2019 Comparative Performance Evaluation of Selected Mutual Funds in India
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
PERFORMANCE EVALUATION OF SELECTED MUTUAL FUNDS IN
INDIA
58
http://c/MutualFund/MFInner.aspx?id=31&scheme=IB005http://c/MutualFund/MFInner.aspx?id=31&scheme=IB005http://c/MutualFund/MFInner.aspx?id=31&scheme=IB005http://c/MutualFund/MFInner.aspx?id=31&scheme=IB008http://c/MutualFund/MFInner.aspx?id=31&scheme=IB008http://c/MutualFund/MFInner.aspx?id=31&scheme=TA047http://c/MutualFund/MFInner.aspx?id=31&scheme=TA047http://c/MutualFund/MFInner.aspx?id=31&scheme=TA047http://c/MutualFund/MFInner.aspx?id=31&scheme=TA047http://c/MutualFund/MFInner.aspx?id=31&scheme=TA052http://c/MutualFund/MFInner.aspx?id=31&scheme=TA052http://c/MutualFund/MFInner.aspx?id=31&scheme=TA052http://c/MutualFund/MFInner.aspx?id=31&scheme=TA054http://c/MutualFund/MFInner.aspx?id=31&scheme=TA054http://c/MutualFund/MFInner.aspx?id=31&scheme=TA054http://c/MutualFund/MFInner.aspx?id=31&scheme=TA001http://c/MutualFund/MFInner.aspx?id=31&scheme=TA001http://c/MutualFund/MFInner.aspx?id=31&scheme=TA002http://c/MutualFund/MFInner.aspx?id=31&scheme=TA002http://c/MutualFund/MFInner.aspx?id=31&scheme=IB005http://c/MutualFund/MFInner.aspx?id=31&scheme=IB005http://c/MutualFund/MFInner.aspx?id=31&scheme=IB005http://c/MutualFund/MFInner.aspx?id=31&scheme=IB008http://c/MutualFund/MFInner.aspx?id=31&scheme=IB008http://c/MutualFund/MFInner.aspx?id=31&scheme=TA047http://c/MutualFund/MFInner.aspx?id=31&scheme=TA047http://c/MutualFund/MFInner.aspx?id=31&scheme=TA047http://c/MutualFund/MFInner.aspx?id=31&scheme=TA052http://c/MutualFund/MFInner.aspx?id=31&scheme=TA052http://c/MutualFund/MFInner.aspx?id=31&scheme=TA052http://c/MutualFund/MFInner.aspx?id=31&scheme=TA054http://c/MutualFund/MFInner.aspx?id=31&scheme=TA054http://c/MutualFund/MFInner.aspx?id=31&scheme=TA054http://c/MutualFund/MFInner.aspx?id=31&scheme=TA001http://c/MutualFund/MFInner.aspx?id=31&scheme=TA001http://c/MutualFund/MFInner.aspx?id=31&scheme=TA002http://c/MutualFund/MFInner.aspx?id=31&scheme=TA002 -
8/2/2019 Comparative Performance Evaluation of Selected Mutual Funds in India
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
PERFORMANCE EVALUATION OF SELECTED MUTUAL FUNDS IN
INDIA
59
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8/2/2019 Comparative Performance Evaluation of Selected Mutual Funds in India
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