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“PERFORMANCE EVALUATION OF SELECTED MUTUAL FUNDS WITHIN THE FRAMEWORK OF RISK AND RETURNS.”
A Project ReportSubmitted to the
UNIVERSITY OF CALICUTIn Partial Fulfillment of the requirement for the award of the
Degree of MASTER OF BUSINESS ADMINISTRATION
Submitted By
DEEPAK.K.DReg. No: JLAKMBA009Under the Guidance of
Mrs. NIMMI.C.R, MBA,
DEPARTMENT OF MANAGEMENT STUDIESJawaharlal College of Engineering & Technology, Lakkidi
Mangalam (p o), Ottapalam, Palakkad -679 301
DEPARTMENT OF MANAGEMENT STUDIES
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Jawaharlal College of Engineering & Technology, LakkidiMangalam (p o), Ottapalam, Palakkad -679 301
DECLARATION
I, Deepak.K.D ,hereby declare that the project report entitled “Performance evaluation of selected mutual funds within the framework of risk and returns.” submitted to the University of Calicut in partial fulfillment of the requirements for the award of the degree of the Master of Business Administration is a record of original work done by me during 01-04-2012 to 15-05-2012 at Capstock securities Ltd Coimbatore., under the guidance of Mrs. Nimmi. C.R , Department Of Management Studies.
I also hereby declare that this project has not been submitted at any time to any other University or institute for the award of any degree/diploma/fellowship or other titles.
Place: Signature
Date:
FORWARDED(Guide)
ADVISOR PRINCIPAL
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DEPARTMENT OF MANAGEMENT STUDIES Jawaharlal College of Engineering & Technology,
Lakkidi Mangalam (p o), Ottapalam, Palakkad -679 301
Dr.M Rajan, MBA, MA, LLB, PhD Date:
CERTIFICATE
This is to certify that this Project report submitted in partial fulfillment of the requirement of the degree of Master of Business Administration of the University of Calicut is a record of Bonafide project work conducted by Mr. Deepak.K.D at Capstock Securities Ltd Coimbatore, under my supervision and guidance and no part of this project report has been submitted earlier for the award of any degree of any University and this report has not been published in part or full in any other magazine or journal.
Signature of the Project Guide
ACKNOWLEDGEMENT
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I take this opportunity to express my gratitude to all persons who have guided and supported me till the successful completion of my Project work.
First and foremost, I thank God for having bestowed his blessing on me to complete this project Work.
It is my privilege and great pleasure to express my sincere and heart full thanks to Adv.P.KRISHNADAS, B.A., L.L.B., MBA, DEM.., Managing Trustee, Nehru Group of Institutions Kerala and Tamilnadu, for giving me the opportunity to study in this prestigious institution and do the project work.
I express my thanks to prof. LASER JOHN, Director of Jawaharlal collage of engineering and technology for the help and valuable support in the completion if the project.
I express my sincere gratitude to Dr.A.S.DEVARAJA. B.E, M.Tec. PhD., HINDI RATNA the Principal of Jawaharlal College of Engineering and Technology, for all facilities extended to me in accomplishing this project work.
I would like to express my thanks to ADVISOR Prof. K.P.C. NAIR, and Prof.Dr.M.RAJAN. LLB. MA. MBA. PhD. for their guidance and help.
I am extremely thankful to Mrs. Nimmi.C.R , MBA of MBA Department, who gave me guidance and suggestions for the project work.
I would like to express my gratitude to Capstock Securities Limited, especially to Mrs Santha (Manager) and all other staffs for their co-operation and providing me the necessary information.
I would like to express my gratitude to all the faculty member of MBA Department for their help and valuable support in the completion of the work.
I extend my profound gratitude to my loving parents, friends as well as my well-wishers whose limitless love, affection, care, prayer and suggestions helped me throughout my project work.
Deepak.K.D
TABLE OF CONTENTS
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CHAPTER NO TITLE PAGE NOChapter 1 1.1 Introduction 1
1.2 Introduction to capital market 2-5
1.3 Statement of the problem 6
1.4 Objective of the study 7
1.5 Research methodology 8-9
1.6 Scope of the study 10
1.7 Limitations of the study 11
Chapter 2 Review of literature 12-40Chapter 3 Company and Industry Profile 41-50Chapter 4 Data analysis and interpretations 51-80Chapter 5 Findings, Suggestions, Conclusions 81-85Chapter 6 Appendix 85-105Chapter 7 Bibliography 106
1.1 INTRODUCTION
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Investment refers to the process of commitment of funds with the
objective of earning additional income or capital appreciation or both. Savings form an
important part of the economy of any nation. With savings invested in various options
available to the people, the money act as driver for growth of the country. Indian financial
scene too presents the multiple avenues to the investors. Though certainly not the best or
deepest of markets in the world, it has ignited the growth rate in mutual fund industry to
provide reasonable options for an ordinary person to invest his savings. Investment goals vary
from person to person. While somebody wants security, others might give more weightage to
returns alone. Somebody else might want to plan for his Child’s education, while somebody
might be savings for life after retirement. With the objectives defying any range, it is obvious
that the products required will vary as well. Today an investor has a lot of investment
alternatives to choose from the market such as shares, debentures, mutual funds, Government
securities etc.
The investors has to make a wise choice keeping in mind various
factors such as objectives of investment, risk associated with the investment, tax benefits,
liquidity ,marketability etc. But it is not an easy task for the investors to identify the right
avenue for investment due to many investment constraints such as lack of resources’ and time
to conduct research etc. Mutual Fund is a trust that pools the savings of a number of investors
who share a common financial goal. The money thus collected invested in capital market
instruments such as shares, debentures and other securities according to funds objectives. The
income earned through these investments and capital appreciations realize are shared by its
unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the
most suitable investment for the common man as it offers an opportunity to invest in a
diversified professionally managed basket of securities at a relatively low cost.
A mutual fund is the ideal investment vehicle for today’s complex
and modern financial scenario. The concept of mutual funds gained momentum because of
the increasing complexities of the capital market. It is difficult for individual investors to
create his portfolio of investments, due to the lack of knowledge and experience about the
stock market. Mutual fund provides the benefit of diversification to unit holders as a result of
which risk of investment gets minimised.
1.2 INTRODUCTION TO INDIAN CAPITAL MARKET
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Capital is often defined as “wealth used in the production of further
wealth.” In simple words, it comprises the money value invested in a business unit. Market is
that place where buyer and sellers are contact to each other and when these two words are
merging together make capital market. A business enterprise can raise capital from various
sources long-term funds can be raised either through issue of securities or by borrowing from
certain institutions. Short-term funds can also be borrowed from various agencies. Thus
business units can raise capital from issue of securities or by borrowings (long-term and
short-term).The borrowers and lenders are brought together through the financial markets.
The term ‘financial market’ collectively refers to all those organizations and institutions
which lend funds to business enterprises and public authorities.
A capital market is a market for securities (both debt and equity),
where business enterprises (companies) and governments can raise long-term funds. It is
defined as a market in which money is lent for periods longer than a year, as the raising of
short-term funds takes place on other markets (e.g., the money market). The capital market
includes the stock market (equity securities) and the bond market (debt).
GROWTH OF CAPITAL MARKET IN INDIA
Government securities market
Since 1991, the investor base for government securities has expanded rapidly. Besides banks
and insurance corporations, finance companies, corporates and financial institutions have also
begun to invest in government securities. The maturity structure of debt has significantly
shifted in favour of medium-term and short-term borrowings. The amount of market - based
primary issuance of government securities which was about Rs. 12.000 crore in 1991-92 rose
to as high as Rs. 99,630 crore in 1999-2000. The gross market borrowings of the Central and
State governments rose to Rs. 1,81,747 crore during 2005-06.
As far as secondary market is concerned, a deep, wide and vibrant gilt-edged market has
emerged as a result of a series of structural and institutional reforms. The secondary market
turnover of government securities registered spectacular increase since mid-1990s. This is
due to a substantial rally in the government securities market.
Corporate Securities Market
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Consequent upon the policy of liberalization adopted by the government in July 1991 and the
subsequent abolition of Capital Issues Control with effect form May 29, 1992, the corporate
securities market got a tremendous boost in the first three-four years of the post-liberalization
phase.
Primary Market or the New Issues Market.
Capital issues consist of two parts - shares and debentures. Prior to 1992-93, debentures were
a more popular means of raising long-term funds and provided almost 70 per cent or more
resources raised through new capital issues.
The persons who hold shares are known as shareholders or members and are part owners of
the company. So, they enjoy certain rights like voting power, receipt of profits in the form of
dividends etc. A company can issue two types of shares, namely equity shares and preference
shares.
Debt Market. The Indian debt market is composed of government bonds and corporate
bonds. Debt Market is however dominated by government bonds. Bonds issued by the
Central government, i.e., the Government of India are the predominant and most liquid
component of the bond market. Government bonds are usually much less volatile than
equities and far more liquid than equities.
Mutual Funds. The mutual funds (MFs) have proved to be important conduits of mobilizing
resources particularly since 1987-88 when the public sector banks were allowed to set up
subsidiaries to undertake mutual fund business. The impressive growth in the Indian Mutual
fund industry in recent years can largely be attributed to various factors such as rising
household savings, comprehensive regulatory framework, favorable tax policies, introduction
of several new products, investor education campaign and role of distributors.
Secondary Market
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Secondary market refers to stock exchanges where existing securities can be regularly
purchased and sold. These markets are an important element in mobilisation of resources.
They enhance the efficiency of the flow of savings. The existence of these markets fulfils a
basic need of the investors namely the liquidity. In these markets, holders of securities can
easily dispose of their securities and obtain cash. Thus viable secondary markets by providing
marketability to securities encourage savers to take risk and make investments in the existing
securities.
NSE AND SSE. The biggest stock exchange of India is the National Stock Exchange (NSE)
which was set up in November 1992. It started its trading operations effective June 30, 1994.
Only the debt market segment of the NSE was put into operation initially
The second largest stock exchange in India is the Bombay Stock Exchange (BSE). It was the
first organised stock exchange established in India at Mumbai as far back as 1887. Presently
NSE and BSE account for almost the entire trading of scrips on Indian stock markets and
most of the regional stock exchanges have been rendered redundant.
International Comparison. In 2003, 2004 and 2005 NSE and BSE ranked third and fifth
respectively in the world on the basis of the number of transactions. In 2006, BSE slipped by
one position to sixth while NSE retained its third position. Table 47.3 shows 10 biggest stock
exchanges by number of transactions in 2003, 2004, 2005 and 2006.
ROLE OF CAPITAL MARKET IN INDIA’S INDUSTRIAL GROWTH
1. Mobilization of savings and acceleration of capital formation. In developing countries
like India plagued by paucity of resources and increasing demand for investments by
industrial organizations and governments, the importance of the capital market is self evident.
2. Promotion of industrial growth. The capital market is a central market through which
resources are transferred to the industrial sector of the economy. The existence of such an
institution encourages people to invest in productive channels rather than in the unproductive
sectors like real estate, bullion etc. Thus it stimulates industrial growth and economic
development of the country by mobilising funds for investment in the corporate securities.
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3. Raising long-term capital. The existence of a stock exchange enables companies to raise
permanent capital. The investors cannot commit their funds for a permanent period but
companies require funds permanently. The stock exchange resolves this clash of interests by
offering an opportunity to investors to buy or sell their securities while permanent capital
with the company remains unaffected.
4. Ready and continuous market. The stock exchange provides a central convenient place
where buyers and sellers can easily purchase and sell securities. The element of easy
marketability makes investment in securities more liquid as compared to other assets.
5. Proper channelization of funds. An efficient capital market not only creates liquidity
through its pricing mechanism but also functions to allocate resources to the most efficient
industries. The prevailing market price of a security and relative yield are the guiding factors
for the people to channelize their funds in a particular company. This ensures effective
utilization of funds in the public interest.
6. Provision of a variety of services. The financial institutions functioning in the capital
market provide a variety of services, the more important ones being the following: (I) grant of
long-term and medium-term loans to entrepreneurs to enable them to establish, expand or
modernize business units; (II) provision of underwriting facilities; (III) assistance in the
promotion of companies (this function is done by the development banks like the IDBI); (IV)
participation in equity capital; and (v) expert advice on management of investment in
industrial securities.
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1.3STATEMENT OF THE PROBLEM
Every individual investor who invests in the equity market wants to minimize
his risk, reduce his transaction expenses and wants to pick up the right stock so that he makes
good money either through capital appreciation or dividends. There are various investment
avenues available to an in investor today. The stock market is volatile and therefore selecting
the right & profitable investment is a real challenge to an investor. He may see mutual funds
as his best bet because mutual funds are special type of companies which provide all the
above stated services in an unique way i.e. they pool money from many investors under a
scheme and invests it on behalf of the group, in accordance with the stated set of objective
and the investors are given units of that particular scheme or fund. The foremost
consideration in selecting a scheme is its performance. Mutual funds are to be analysed in
terms of assets and liabilities in the portfolio, return of the fund, risk return portfolio and
investment objective.
A hypothetical situation is considered where an investor wants long term growth in his
capital and thus invests in the growth or capital appreciation scheme of the mutual funds. It
seems rational that any ordinary investor would try and invest in the best performing scheme
which would suit his objectives. Therefore this study aims at identifying the right mutual
fund schemes for investment with regard to returns & performance.
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1.4 OBJECTIVES OF THE STUDY
Primary objective
To analyse the risk and return of selected equity diversified funds and Large cap funds.
Secondary objectives
To evaluate the performance of selected equity diversified funds and Large cap funds.
To identify the growth potential of funds
To suggest the best performing funds to the varying investment needs of investors.
1.5 RESEARCH METHODOLOGY
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Research methodology is the way to systematically solve the research problem.
1. Type of research
Type of research is analytical where the available information or data are analysed
and critical evaluations are made to solve any problems Under this study then NAV data of
the Mutual fund schemes over a period of 3 year has been used for evaluating their
performance.
2. Population
Equity Based mutual fund schemes offered by 42 Asset Management Companies in India.
3. Sampling design
Stratified sampling is used for the study. The funds are selected from the equity diversified
scheme based on the best return percentages for the last 3year were selected for the study.
4. Sample size
10 mutual fund schemes in Equity diversified funds
1. CANARA ROBECO EQUITY DIVERSIFIED FUND (G)
2. TATA CONTRA FUND (G)
3. KOTAK CONTRA FUND (G)
4. AIG INDIA EQUITY FUND(G
5. UTI MNC FUND (G)
6. TEMPLTON INDIA EQUITY (G)
7. TATA CAPITAL BUILDER FUND (G)
8. BIRLA SUNLIFE NAXT GENERATION FUND (G)
9. SBI MAGNUM CONTRA (G)
10. ESCORTS OPPORTUNITIES FUND (G)
10 Mutual funds from Large cap Funds.
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1. ICICI PRUDENTIAL FOCUSED BLUE CHIP FUND
2. UTI OPPORTUNITIES FUND G)
3. FIDELITY EQUITY FUND
4. FRANKLIN INDIA BLUE CHIP FUND (G)
5. HDFC Top 200 FUND (G)
6. JP MORGAN INDIA EQUITY FUND
7. RELLIANCE QUANT PLUS FUND RETAIL PLAN [G]
8. ING CORE EQUITY FUND
9. HSBC INDIA OPPORTUNITIES FUND
10. BNP PARIBAS EQUITY FUND
5. Data Source
Secondary data
Secondary data are those which are already available being collected and analyzed by
someone else. The study is based on NAV data of the fund which was readily available on the
website www.amfiindia.com other information collected from records, books, magazines,
and various other websites.
6. Data Analysis Tools
The performance evaluations of the selected equity based mutual funds have been done on
the basis of NAV data by using the following analytical tools.
Risk Analysis
Total risk : Mean, Standard Deviation, Variance, Co Variance
Market Risk : Beta , Alpha
Risk Adjusted Return: Sharpe’s Performance Index, Treynor’s Performance
Growth Rate Analysis: Compounded Annual Growth Rate
4. Ranking of funds : Weighted Average Method
7. Presentation Tools: Tables & charts
1.6 SCOPE OF THE STUDY
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The study is focused on the performance of the selected equity
growth mutual funds available and invested in Indian stock market .performance of the
various types of equity diversified mutual funds for a period one year from 1st May 2009 to
31st March 2011 along with 3year Compounded Annual Growth Rate from 1st April 2012 to
31st March 2011 bring out the best performing fund during the current market situation to the
investors.
1.7 LIMITATIONS OF THE STUDY
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The study is based on the historical data may not project the future performance of the
funds.
Tools used for analysis has its own limitations. E.g. the result may vary significantly
when applied under different market situations.
The study is based on a few of selected equity diversified and sector mutual funds
only. So the result does not reflect the performance of the entire mutual fund industry.
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REVIEW OF LITERATURE
MUTUAL FUNDS:
Mutual funds, as the name indicates is the fund where in numerous investors
come together to invest in various schemes of mutual fund. Mutual funds are dynamic
institution, which plays a crucial role in an economy by mobilizing savings and investing
them in the capital market, thus establishing a link between savings and the capital market. A
mutual fund is an institution that invests the pooled funds of public to create a diversified
portfolio of securities. Pooling is the key to mutual fund investing. Each mutual fund has a
specific investment objective and tries to meet that objective through active portfolio
management.
Mutual fund as an investment company combines or collects money of its
shareholders and invests those funds in variety of stocks, bonds, and money market
instruments. The latter include securities, commercial papers, certificates of deposits, etc.
Mutual funds provide the investor with professional management of funds and diversification
of investment
Investors who invest in mutual funds are provided with units to participate in stock markets.
These units are investment vehicle that provide a means of participation in the stock market
for people who have neither the time, nor the money, nor perhaps the expertise to undertake
the direct investment in equities. On the other hand they also provide a route into specialist
markets where direct investment often demands both more time and more knowledge than an
investor may possess.
The price of units in any mutual fund is governed by the value of underlying
securities. The value of an investor’s holding in a unit can therefore, like an investment in
share, can go down as well as up. Hence it is said that mutual funds are subjected to market
risk. Mutual fund cannot guarantee a fixed rate of return. It depends on the market condition.
If the particular scheme is performing well then more return can be expected.
It also depends on the fund manager expertise knowledge. It is also seen that people invest
in particular funds depending on who the fund manager is.
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When an investor subscribes for the units of a mutual fund, he becomes part owner of
the assets of the fund in the same proportion as his contribution amount put up with the
corpus (the total amount of the fund). Mutual Fund investor is also known as a mutual fund
shareholder or a unit holder.
Mutual Fund Operation Flow Chart
Any change in the value of the investments made into capital market instruments (such
as shares, debentures etc) is reflected in the Net Asset Value (NAV) of the scheme. NAV is
defined as the market value of the Mutual Fund scheme's assets net of its liabilities. NAV of a
scheme is calculated by dividing the market value of scheme's assets by the total number of
units issued to the investors.
For example:
If the market value of the assets of a fund is Rs. 100,000
A. The total number of units issued to the investors is equal to 10,000.
B. Then the NAV of this scheme = (A)/(B), i.e. 100,000/10,000 or 10.00
C. Now if an investor 'X' owns 5 units of this scheme
Then his total contribution to the fund is Rs. 50 (i.e. Number of units held multiplied by the
NAV of the scheme).
Thus a mutual fund is the most suitable investment for the common person as it offers an
opportunity to invest in a diversified, professionally managed basket of securities at a
relatively low cost.
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Since small investors generally do not have adequate time, knowledge, experience &
resources for directly accessing the capital market, they have to rely on an intermediary,
which undertakes informed investment decisions & provides consequential benefits of
professional expertise.
A collected corpus can be used to procure a diversified portfolio indicating greater
returns has also create economies of scale through cost reduction. This principle has been
effective worldwide as more & more investors are going the mutual fund way. This portfolio
diversification ensures risk minimization. The criticality such a measure comes in when you
factor in the fluctuations that characterize stock markets. The interest of the investors is
protected by the SEBI, which acts as a watchdog. Mutual funds are governed by SEBI
(Mutual Funds) regulations, 1996.
TYPES OF MUTUAL FUNDS
BY Structure : On the basis of the structure the funds can be classified as ,
1.Open-end funds
Funds that can sell and purchase units at any point in time are classified as Open-end
Funds. The fund size (corpus) of an open-end fund is variable (keeps changing) because of
continuous selling (to investors) and repurchases (from the investors) by the fund. An open-
end fund is not required to keep selling new units to the investors at all times but is required
to always repurchase, when an investor wants to sell his units. The NAV of an open-end fund
is calculated every day.
2.Closed-end Funds
Funds that can sell a fixed number of units only during the New Fund Offer (NFO)
period are known as Closed-end Funds. The corpus of a Closed-end Fund remains unchanged
at all times. After the closure of the offer, buying and redemption of units by the investors
directly from the Funds is not allowed. However, to protect the interests of the investors,
SEBI provides investors with two avenues to liquidate their positions:
1. Closed-end Funds are listed on the stock exchanges where investors can buy/sell units
from/to each other. The trading is generally done at a discount to the NAV of the scheme.
The NAV of a closed-end fund is computed on a weekly basis (updated every Thursday).
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2. Closed-end Funds may also offer "buy-back of units" to the unit holders. In this case,
the corpus of the Fund and its outstanding units do get changed.
3. Interval Scheme
It is a type of close ended scheme with a peculiar feature that it remains open during a
particular period for the benefit of the investors either to offload their holdings or to
undertake purchase of units at the NAV.
Under the SEBI (MF) Regulations, every mutual fund is free to launch any or both
types of schemes, including interval scheme.
BY INVESTMENT OBJECTIVE :
On the basis of investor’s objective ,the funds can be classified as,
1. Equity Funds /Growth funds
Equity funds are considered to be the more risky funds as compared to other fund
types, but they also provide higher returns than other funds. It is advisable that an investor
looking to invest in an equity fund should invest for long term i.e. for 3 years or more. There
are different types of equity funds each falling into different risk bracket. In the order of
decreasing risk level, there are following types of equity funds:
A. Aggressive Growth Funds –
In Aggressive Growth Funds, fund managers aspire for maximum capital appreciation and
invest in less researched shares of speculative nature. Because of these speculative
investments Aggressive Growth Funds become more volatile and thus, are prone to higher
risk than other equity funds.
B. Growth Funds –
Growth Funds also invest for capital appreciation (with time horizon of 3 to 5 years)
but they are different from Aggressive Growth Funds in the sense that they invest in
companies that are expected to outperform the market in the future. Without entirely adopting
speculative strategies, Growth Funds invest in those companies that are expected to post
above average earnings in the future.
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C. Speciality Funds –
Speciality Funds have stated criteria for investments and their portfolio comprises of
only those companies that meet their criteria. Criteria for some speciality funds could be to
invest/not to invest in particular regions/companies. Speciality funds are concentrated and
thus, are comparatively riskier than diversified funds.. There are following types of speciality
funds:
i. Sector Funds:
Equity funds that invest in a particular sector/industry of the market are known
as Sector Funds. The exposure of these funds is limited to a particular sector (say Information
Technology, Auto, Banking, Pharmaceuticals or Fast Moving Consumer Goods) which is
why they are more risky than equity funds that invest in multiple sectors.
ii. Foreign Securities Funds:
Foreign Securities Equity Funds have the option to invest in one or more foreign
companies. Foreign securities funds achieve international diversification and hence they are
less risky than sector funds. However, foreign securities funds are exposed to foreign
exchange rate risk and country risk.
iii Mid-Cap or Small-Cap Funds:
Funds that invest in companies having lower market capitalization than large
capitalization companies are called Mid-Cap or Small-Cap Funds. Market capitalization of
Mid-Cap companies is less than that of big, blue chip companies (less than Rs. 2500 crores
but more than Rs. 500 crores) and Small-Cap companies have market capitalization of less
than Rs. 500 crores. Market Capitalization of a company can be calculated by multiplying the
market price of the company's share by the total number of its outstanding shares in the
market. The shares of Mid-Cap or Small-Cap Companies are not as liquid as of Large-Cap
Companies which gives rise to volatility in share prices of these companies and consequently,
investment gets risky.
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D. Equity Income or Dividend Yield Funds
The objective of Equity Income or Dividend Yield Equity Funds is to generate high
recurring income and steady capital appreciation for investors by investing in those
companies which issue high dividends (such as Power or Utility companies whose share
prices fluctuate comparatively lesser than other companies' share prices). Equity Income or
Dividend Yield Equity Funds are generally exposed to the lowest risk level as compared to
other equity funds.
D. Diversified Equity Funds
Except for a small portion of investment in liquid money market, diversified
equity funds invest mainly in equities without any concentration on a particular sector(s).
These funds are well diversified and reduce sector-specific or company-specific risk.
However, like all other funds diversified equity funds too are exposed to equity market risk.
E. Equity Linked Savings Schemes (ELSS)
As per the mandate, a minimum of 90% of investments by ELSS should be in equities at all
times. ELSS investors are eligible to claim deduction from taxable income (up to Rs 1 lakh)
at the time of filing the income tax return. ELSS usually has a lock-in period and in case of
any redemption by the investor before the expiry of the lock-in period makes him liable to
pay income tax on such income(s) for which he may have received any tax exemption(s) in
the past.
F. Equity Index Funds
Equity Index Funds have the objective to match the performance of a specific stock market
index. The portfolio of these funds comprises of the same companies that form the index and
is constituted in the same proportion as the index. Equity index funds that follow broad
indices (like S&P CNX Nifty, Sensex) are less risky than equity index funds that follow
narrow sectoral indices (like BSEBANKEX or CNX Bank Index etc). Narrow indices are less
diversified and therefore, are more risky.
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2. Debt / Income Funds
Funds that invest in medium to long-term debt instruments issued by private companies,
banks, financial institutions, governments and other entities belonging to various sectors (like
infrastructure companies etc.) are known as Debt / Income Funds. Debt funds are low risk
profile funds that seek to generate fixed current income (and not capital appreciation) to
investors. In order to ensure regular income to investors, debt (or income) funds distribute
large fraction of their surplus to investors. Although debt securities are generally less risky
than equities, they are subject to credit risk (risk of default) by the issuer at the time of
interest or principal payment.
A. Diversified Debt Funds
Debt funds that invest in all securities issued by entities belonging to all sectors of the
market are known as diversified debt funds. The best feature of diversified debt funds is that
investments are properly diversified into all sectors which results in risk reduction. Any loss
incurred, on account of default by a debt issuer, is shared by all investors which further
reduces risk for an individual investor.
B. Focused Debt Funds
Unlike diversified debt funds, focused debt funds are narrow focus funds that are confined to
investments in selective debt securities, issued by companies of a specific sector or industry
or origin. Some examples of focused debt funds are sector, specialized and offshore debt
funds, funds that invest only in Tax Free Infrastructure or Municipal Bonds. Because of their
narrow orientation, focused debt funds are more risky as compared to diversified debt funds.
Although not yet available in India, these funds are conceivable and may be offered to
investors very soon.
C. High Yield Debt funds
As we now understand that risk of default is present in all debt funds, and therefore, debt
funds generally try to minimize the risk of default by investing in securities issued by only
those borrowers who are considered to be of "investment grade". But, High Yield Debt Funds
adopt a different strategy and prefer securities issued by those issuers who are considered to
be of "below investment grade".
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D. Assured Return Funds
Although it is not necessary that a fund will meet its objectives or provide assured returns to
investors, but there can be funds that come with a lock-in period and offer assurance of
annual returns to investors during the lock-in period. Any shortfall in returns is suffered by
the sponsors or the Asset Management Companies (AMCs). These funds are generally debt
funds and provide investors with a low-risk investment opportunity. However, the security of
investments depends upon the net worth of the guarantor (whose name is specified in advance
on the offer document). To safeguard the interests of investors, SEBI permits only those
funds to offer assured return schemes whose sponsors have adequate net-worth to guarantee
returns in the future. In the past, UTI had offered assured return schemes (i.e. Monthly
Income Plans of UTI) that assured specified returns to investors in the future. UTI was not
able to fulfill its promises and faced large shortfalls in returns. Eventually, government had to
intervene and took over UTI's payment obligations on itself. Currently, no AMC in India
offers assured return schemes to investors, though possible.
E. Fixed Term Plan Series
Fixed Term Plan Series usually are closed-end schemes having short term maturity period
(of less than one year) that offer a series of plans and issue units to investors at regular
intervals. Unlike closed-end funds, fixed term plans are not listed on the exchanges. Fixed
term plan series usually invest in debt / income schemes and target short-term investors. The
objective of fixed term plan schemes is to gratify investors by generating some expected
returns in a short period
1. Money Market / Liquid Funds
Money market / liquid funds invest in short-term (maturing within one year) interest
bearing debt instruments. These securities are highly liquid and provide safety of investment,
thus making money market / liquid funds the safest investment option when compared with
other mutual fund types. However, even money market / liquid funds are exposed to the
interest rate risk. The typical investment options for liquid funds include Treasury Bills
(issued by governments), Commercial papers (issued by companies) and Certificates of
Deposit (issued by banks).
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2 . Hybrid Funds
As the name suggests, hybrid funds are those funds whose portfolio includes a
blend of equities, debts and money market securities. Hybrid funds have an equal proportion
of debt and equity in their portfolio. There are following types of hybrid funds in India:
A. Balanced Funds -
The portfolio of balanced funds include assets like debt securities, convertible securities, and
equity and preference shares held in a relatively equal proportion. The objectives of balanced
funds are to reward investors with a regular income, moderate capital appreciation and at the
same time minimizing the risk of capital erosion. Balanced funds are appropriate for
conservative investors having a long term investment horizon.
B. Growth-and-Income Funds
Funds that combine features of growth funds and income funds are known as Growth-and-
Income Funds. These funds invest in companies having potential for capital appreciation and
those known for issuing high dividends. The level of risks involved in these funds is lower
than growth funds and higher than income funds.
OTHER SCHEMES
1. Gilt Funds
Also known as Government Securities in India, Gilt Funds invest in government papers
(named dated securities) having medium to long term maturity period. Issued by the
Government of India, these investments have little credit risk (risk of default) and provide
safety of principal to the investors. However, like all debt funds, gilt funds too are exposed to
interest rate risk. Interest rates and prices of debt securities are inversely related and any
change in the interest rates results in a change in the NAV of debt/gilt funds in an opposite
direction.
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2.Asset Allocation Funds
Mutual funds may invest in financial assets like equity, debt, money market or non-financial
(physical) assets like real estate, commodities etc.. Asset allocation funds adopt a variable
asset allocation strategy that allows fund managers to switch over from one asset class to
another at any time depending upon their outlook for specific markets. It should be noted that
switching over from one asset class to another is a decision taken by the fund manager on the
basis of his own judgment and understanding of specific markets, and therefore, the success
of these funds depends upon the skill of a fund manager in anticipating market trends.
3.Commodity Funds
Those funds that focus on investing in different commodities (like metals, food grains, crude
oil etc.) or commodity companies or commodity futures contracts are termed as Commodity
Funds. A commodity fund that invests in a single commodity or a group of commodities is a
specialized commodity fund and a commodity fund that invests in all available commodities
is a diversified commodity fund and bears less risk than a specialized commodity fund.
"Precious Metals Fund" and Gold Funds (that invest in gold, gold futures or shares of gold
mines) are common examples of commodity funds.
4. Real Estate Funds
Funds that invest directly in real estate or lend to real estate developers or invest in
shares/securitized assets of housing finance companies, are known as Specialized Real Estate
Funds. The objective of these funds may be to generate regular income for investors or
capital appreciation.
5 Exchange Traded Fund
Exchange Traded Funds provide investors with combined benefits of a closed-end and an
open-end mutual fund. Exchange Traded Funds follow stock market indices and are traded on
stock exchanges like a single stock at index linked prices. The biggest advantage offered by
these funds is that they offer diversification, flexibility of holding a single share (tradable at
index linked prices) at the same time. Recently introduced in India, these funds are quite
popular abroad.
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6.Fund of funds
Mutual funds that do not invest in financial or physical assets, but do invest in other mutual
fund schemes offered by different AMCs, are known as Fund of Funds. Fund of Funds
maintain a portfolio comprising of units of other mutual fund schemes, just like conventional
mutual funds maintain a portfolio comprising of equity/debt/money market instruments or
non financial assets. Fund of Funds provide investors with an added advantage of
diversifying into different mutual fund schemes with even a small amount of investment,
which further helps in diversification of risks. However, the expenses of Fund of Funds are
quite high on account of compounding expenses of investments into different mutual fund
schemes
The Advantages of investing in a Mutual Fund are:
Professional Management –
The primary advantage of funds (at least theoretically) is the professional management of
your money. Investors purchase funds because they do not have the time or the expertise to
manage their own portfolio. A mutual fund is a relatively inexpensive way for a small
investor to get a full-time manager to make and monitor investments.
Diversification –
By owning shares in a mutual fund instead of owning individual stocks or bonds, your risk is
spread out. 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. In other words, the more
stocks and bonds you own, the less any one of them can hurt you (think about Enron). Large
mutual funds typically own hundreds of different stocks in many different industries. It
wouldn't be possible for an investor to build this kind of a portfolio with a small amount of
money.
Economies of Scale –
Because a mutual fund buys and sells large amounts of securities at a time, its transaction
costs are lower than you as an individual would pay.
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Convenient Administration–
Investing in a Mutual Fund reduces paperwork and helps you avoid many problems such as
bad deliveries, delayed payments and follow up with brokers and companies. Mutual Funds
save your time and make investing easy and convenient.
Return Potential–
Over a medium to long-term, Mutual Funds have the potential to provide a higher return as
they invest in a diversified basket of selected securities.
Low Costs–
Mutual Funds are a relatively less expensive way to invest compared to directly investing in
the capital markets because the benefits of scale in brokerage, custodial, Demat costs,
depository costs etc and other fees translate into lower costs for investors.
Liquidity–
In open-end schemes, the investor gets the money back promptly at net asset value related
prices from the Mutual Fund. In closed-end schemes, the units can be sold on a stock
exchange at the prevailing market price or the investor can avail of the facility of direct
repurchase at NAV related prices by the Mutual Fund.
Transparency–
You get regular information on the value of your investment in addition to disclosure on the
specific investments made by your scheme, the proportion invested in each class of assets and
the fund manager's investment strategy and outlook
Flexibility–
Through features such as regular investment plans, regular withdrawal plans and dividend
reinvestment plans, you can systematically invest or withdraw funds according to your needs
and convenience.
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Affordability–
Investors individually may lack sufficient funds to invest in high-grade stocks. A mutual fund
because of its large corpus allows even a small investor to take the benefit of its investment
strategy.
Choice of Schemes–
Mutual Funds offer a family of schemes to suit your varying needs over a lifetime.
Well-Regulated–
All Mutual Funds are registered with SEBI and they function within the provisions of strict
regulations designed to protect the interests of investors. The operations of Mutual Funds are
regularly monitored by SEBI. AMFI is the supervisory body of Mutual Fund Industry.
Simplicity –
Buying a mutual fund is easy! Pretty well any bank has its own line of mutual funds, and the
minimum investment is small. Most companies also have automatic purchase plans whereby
as little as $100 can be invested on a monthly basis.
The Disadvantages of Mutual Funds are:
The Disadvantages of investing in a Mutual Fund are:
• Professional Management-
Many investors debate over whether or not the so-called professionals are any better than you
or I at picking stocks. Management is by no means infallible, and, even if the fund loses
money, the manager still takes his/her cut. We'll talk about this in detail in a later section.
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• Costs –
Mutual funds don't exist solely to make your life easier--all funds are in it for a profit. The
mutual fund industry is masterful at burying costs under layers of jargon. These costs are so
complicated that in this tutorial have devoted an entire section to the subject.
• Dilution –
It's possible to have too much diversification (this is explained in our article entitled "Are
You Over-Diversified?". Because funds have small holdings in so many 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.
• Taxes –
When making decisions about your money, fund managers don't consider your 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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PERFORMANCE EVALUATION OF MUTUAL FUNDS
Performance evaluation is a critical and often poorly handled part of
the portfolio management process. The principal problem with the performance evaluation is
the human tendency to focus on the return a portfolio earned over a period of time with little
regard to the risk taken in achieving that return. Proper performance evaluation should
involve a recognition of both return and riskiness of the investment.
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. 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-à-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 can not. By using the risk return relationship, we try
to assess the competitive strength of the mutual funds vis-à-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 such as to
evaluate a portfolio by comparing alternative portfolios within a particular risk class.
Sharpe’s index ands Treynor’s index are important among them.
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Measurement of return on mutual funds
A mutual fund's return is the rate of increase or decrease in its value over a specific
period of time usually expressed in the following increments: one, three, five, and ten year,
year to date, and since the inception of the fund. Since return is a common measure of
performance, you can use it to evaluate and compare mutual funds within the same fund
category. Generally expressed as an annualized percentage rate, return is calculated
assuming that all distributions from the fund are reinvested.
Performance evaluation of mutual funds starts with measurement of return on mutual
funds . Return on mutual funds can be primarily measured in terms of NAV (Net Asset
Value) of the funds.
NAV is the current market value of a fund’s holdings, less the fund’s liabilities, usually
expressed as a per unit amount. For most funds, the NAV is determined daily, after the close
of the trading on some specified stock exchange. But some funds update their NAV multiple
times during the trading day.
Market value of assets- Liabilities
NAV=
No of units outstanding
Change in NAV method
Here the return on mutual fund is calculated by change in NAV method. According to this
method ,
[ Value of holding at the _ [Value of holding at the
end of the period] beginning of the period]
Return(%) = _________________________________________________ * 100
[ Value of holding at the beginning of the period]
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Risk Measurement of Mutual Funds
Every type of investment, including mutual funds, involves risk. Risk refers
to the possibility that you will lose money (both principal and any earnings) or fail to make
money on an investment. A fund's investment objective and its holdings are influential
factors in determining how risky a fund is.
Risk is the possibility of loss or variation of the actual return from the
expected one. Risk arises when actual returns are different from expected returns . Risk is
caused by numerous factors such as social, political, economic and managerial factors. Risk
is actually a qualitative concept that is impossible to measure completely. Research has
discovered , however, that a quantitative measure of dispersion is a very good proxy. So the
accuracy of measurements cannot be assured cent per cent. Measurements provides an
approximate quantification of risk. Expressing the risk of a fund in quantitative terms makes
it comparable with other funds.
1. Standard deviation(SD)
It is a statistical tool used to measure the risk. Formulated by Galton in the late 1860s, the
standard deviation remains the most common measure of statistical dispersion, measuring
how widely spread the values in a data sets are.
If many data points are close to the mean the standard deviation is very small.
If many data points are far from the mean the standard deviation is very large.
If all values are equal then Standard deviation is zero.
Standard deviation(SD) = N∑x2- (∑x)2
N2
Investors prefer Standard Deviation because it provides a precise measure of how varied a
funds return have been over a particular period of time-both on the upside and down side.
With this information, an investor can judge the range of returns his or her fund is likely to
generate in future.
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2.Beta coefficient (β)
Beta of a fund indicates it’s systematic risk or market risk which is non-diversifiable in
nature. Beta shows how the price of a fund responds to market forces. ie. it describes the
relationship between the stock/fund’s return and index return.
( n∑XY) – (∑X)(∑Y)
Beta =
(n∑X2)-(∑X)2
Where,
X represents stock market index return
Y represents stock or fund return
By definition, the market itself has an underlying beta of 1.0, and individual fund are
ranked according to how much they deviate from the macro market.
A fund that swings more than the market (i.e. more volatile) over time has a beta whose
absolute value is greater than 1.0.
If a fund moves less than the market, the absolute value of the stock's beta is less than 1.0.
Betas can also be negative, meaning the fund moves in the opposite direction of the
market: fund with a beta of -3 would decline 9% when the market goes up 3% and conversely
would climb 9% if the market fell by 3%.
Higher-beta fund mean greater volatility and are therefore considered to be riskier, but are
in turn supposed to provide a potential for higher returns low-beta fund pose less risk but also
lower returns
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3. Alpha(α)
Alpha is a measure of performance on a risk adjusted basis. Alpha takes the volatility or price
risk of a mutual fund and compares its risk adjusted performance to its benchmark index. The
excess return of the fund relative to the benchmark index is the fund’s index. It is the distance
between intersection of market return and fund return.
Alpha (α) = Ȳ - βX ,
Where
Ȳ = ∑Y/n ie Mean return of the fund
X = ∑X/n ie. Mean return of the market
β= Beta of the fund
A positive value would yield profitable return. It is a healthy sign. In a well diversified
portfolio, the average value of alpha of funds turns out to be zero.
Measurement of Risk Adjusted Returns
Two methods of measuring the return per unit of risk have been proposed by Jack Treynor
and William Sharpe. The methods are discussed below.
1.Treynor’s Index
The Treynor’s Index owes its origin to Jack Treynor. This index is the ratio of return
generated by the fund over and above risk free rate of return, during a given period and
systematic risk(Beta) associated with it. The risk free rate of return is generally taken as the
return on government securities as there is no credit risk associated with them. The Treynor’s
index can be represented as: -
Treynor’s Index (Ti) = (Ri – Rf) / β i
Where’ Ri represents average return on fund ,
Rf is the risk free rate of return and
β i is the Beta of the fund
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1. Sharpe’s Index
The Sharpe ratio is a risk-adjusted measure of return that is often used to evaluate
the performance of a portfolio or fund .Sharpe index measures the risk premium of the
portfolio relative to the total amount of risk in the portfolio. The risk premium is the
difference between the portfolio’s average rate of return and risk free rate of return. The
standard deviation of the portfolio indicates the risk. According to Sharpe, it is the total risk
of the fund that the investors are concerned about. So, the model evaluates funds on the basis
of reward per unit of total risk.
The sharpe index is given by the formula:
Sharpe Ratio (Si) = (Ri - Rf) / SD
Where, Ri represents average return on fund .
Rf is the risk free rate of return.
SD is the Standard Deviation of the Fund .
Sharpe’s ratio gives a single value to be used for ranking the performance of various funds or
portfolios. The highest values to the assets that have best risk adjusted rate of return. 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 Measures
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 on total 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.
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Growth Rate Analysis
Compound Annual Growth Rate (CAGR):
Compound Annual Growth Rate (CAGR) is a business and investing specific term for
the smoothed annualized gain of an investment over a given time period.
CAGR is the rate at which the investment has grown from its beginning to the end
point , on an annual compounding basis. It is the year over year growth rate applied to an
investment over a multiple-year period. One of the benefits of CAGR over other calculations
is that it decrease the effects of volatility. CAGR is not an accounting term, but remains
widely used, particularly in growth industries or to compare the growth rates of two
investments because CAGR dampens the effect of volatility of periodic returns that can
render arithmetic means irrelevant. CAGR is often used to describe the growth over a period
of time of some element of the business, for example revenue, units delivered, registered
users, etc.
Formula is,
CAGR (t0,tn) =( [V(tn)/V(t0) ] 1/n)-1 * 100
Where ,V(t0) =start value,
V(tn) = finish value,
n = tn − t0 = number of years
Ranking the Schemes
In order to arrive at the best fund in each category of funds under study , it is essential to
rank them on an appropriate basis. Here the funds are ranked using the Weighted Average
Method by assigning weights to CAGR, SHARPE Ratio and Treynor Ratio as 3,2,1
respectively.
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Weighted Average Method
The weighted mean is similar to an arithmetic mean (the most common type of average),
where instead of each of the data points contributing equally to the final average, some data
points contribute more than others. The notion of weighted mean plays a role in descriptive
statistics and also occurs in a more general form in several other areas of mathematics.
An average in which each quantity to be averaged is assigned a weight. These weightings
determine the relative importance of each quantity on the average. Therefore data elements
with a high weight contribute more to the weighted mean than do elements with a low
weight. The weights cannot be negative. Some may be zero, but not all of them (since
division by zero is not allowed).
∑Wi *Xi
Formula is = ____________
∑Wi
Where, Wi=Weight of value ‘ Xi’ and Xi = Value
Steps :
1. Assign weight to each value on the basis of its importance.
2. Multiply each value by its weight.
3. Add up the products of value times weight to get the total value.
4 Add the weight themselves to get the total weight.
5. Divide the total value by the total weight.
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Factors to be considered while comparing mutual funds
Picking and choosing a mutual fund is appear to have turned out to be a multi-sided
matter. As there are plenty of funds available in the market, the most crucial factor in
determining which one is better than the rest is to look at the returns.
1. Absolute returns- measure how much the fund has gained over a certain period
The return that an asset achieves over a period of time. This measure simply looks at the
appreciation or depreciation (expressed as a percentage) that an asset - usually a stock or a
mutual fund - faces over a period of time.
2. Funds Benchmark- This will provide the standard by which we can make the assessment.
It indicates what the fund has earned against what it should have earned. The benchmark
index selected for this study is S&P CNX Nifty
The S&P CNX Nifty is the headline index on the National Stock Exchange of India Ltd.
(NSE). It is a diversified 50 stock index comprising large and highly liquid securities,
covering 25 sectors of the economy. The index was created for those interested in trading and
investing in Indian equities. In addition to ensuring that Nifty is a true reflection of the stock
market, it was also designed for applications such as index funds and index derivatives.
3.Time period-The period over which the return should be compared and assessed has to be
the same over which that type of fund is meant to be invested in.
4. Market Conditions -It is important to see whether the funds return history is long enough
to have seen all kinds of market conditions
5..When returns are compared ,make sure that the time period is equal.
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Sharpe (1966) in order to evaluate the risk-adjusted performance of mutual funds introduced the
measure known as reward-to-variability ratio (Currently Sharpe Ratio). With the help of this ratio he
evaluated the return of 34 open-end mutual funds in the period 1945-1963. The results showed that
to a major extent the capital market was highly efficient due to which majority of the sample had
lower performance as compared to the Dow Jones Index. Sharpe (1966) found that from 1954 to
1963 only 11 funds outperformed the Dow-Jones Industrial Average (DJIA) while 23 funds were
outperformed by the DJIA. Study concluded that the mutual funds were inferior investments during
the period. Results also showed that good managers concentrate on evaluating risk and providing
diversification.
Jensen (1968) developed own measure known as Jensen’s Alpha to examine the risk- portfolios’
risk-adjusted performance and estimate the predictive ability of mutual fund managers. The measure
was based on the theory of the pricing of capital assets. For this purpose a sample of 115 open end
mutual funds (for which net asset and dividend information was available) was taken for the period
1955-1964. After applying the Jensen measure he concluded that stock prices could not be forecasted
accurately with the help of mutual funds therefore buy and hold strategy could not be used to take
any advantage. Similarly there is slight evidence that an individual mutual fund can achieve returns
higher than a portfolio comprised of randomly selected shares.
Carlson (1970) conducted a research to analyze the predictive value of past results in forecasting
future performance of mutual funds for the period 1948-1667. The author also examined the
efficiency of market and identified the factors related to the fund performance. First of all he
constructed indices for three types of mutual funds (Diversified common stock, Balanced, Income)
and compared these indices with the market indices. In order to analyze the performance regression
was used. The results provide empirical support to the return-risk postulate of the capital asset
pricing model and concluded that whether mutual funds outperform the market depends on the
selection of both the time period and market proxy. The author also concluded that past performance
showed little predictive value and that the performance was positively related to the availability of
new cash resources for investment purposes.
Arditti (1971) criticized the reward-to-variability criterion proposed by Sharpe (1966) on the
grounds that it utilized only the first two moments of the probability distribution of returns. Author
proposed that the third moment, a measure of the direction and size of the distribution’s tail, be
included in the analysis. Arditti (1971) further argued that investors preferred positive skewness
40
because positive skewness implied greater probability of higher return. Therefore assets with
relatively low reward-to-variability ratios would not be inferior investments if ratios also have
relatively high third moments (high positive skewness). Furthermore author reexamined the Sharpe
(1966) data with this additional requirement and found that average fund performance was not
inferior to Dow Jones Industrial Average (DJIA) performance because the skewness of the Dow
Jones Industrial Average (DJIA) return distribution was significantly less than fund skewness.
Deepak Agrawal (2010) “Measuring Performance of Indian Mutual funds”. This paper is a process
to analyze the Indian Mutual Fund Industry pricing mechanism with empirical studies on its
valuation. It also analyzes data at both the fund-manager and fund-investor levels. The study reveled
that the performance is affected saving and investment habits of the people at the second side the
confidence and loyalty of the fund Manager and rewards affects the performance of the MF industry
in India.
Mcdonald (1973) developed a model to evaluate the investment performance of funds holding
securities in two countries. For this purpose a sample of eight of the oldest French mutual funds was
taken. The monthly returns of these funds were calculated and analyzed for the period 1964-1969.
The results showed that the funds generally produced superior risk-adjusted returns and that the
French market was inefficient with respect to the completeness and speed of dissemination of
information. The author concluded that those funds which invested in the French market in 1964-69
generally achieved lower return at a given level of variance than that reflected in the U.S. market
returns. Mcdonald (1973) also found that the funds were generally able to attain superior returns
relative to naive portfolio strategy.
McDonald (1974) conducted a research to examine the objectives and performance (risk and return)
of American mutual funds in the period 1960-1669. Sample of 123 American mutual funds was
analyzed by using Treynor (1965) and Sharpe (1966) indexes. The results indicated that stated
objectives were significantly related to subsequent measures of systematic risk and total variability.
Therefore the funds with aggressive objectives generally produced better performance. The results
also showed that 67 funds perform better than the stock market average in case of Treynor’s (1965)
index while in case of Sharpe’s (1966) index only 39 mutual funds showed higher performance than
the stock market average. The author concluded that Average fund return increases with increase in
risk.
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Miller and Nicholas (1980) conducted a research to examine the risk-return relationships in the
presence of nonstationarity in order to obtain more precise estimates of alpha and beta. For this
purpose this study applied partition regression and a partition selection rule for estimating the
traditional CAPM in case of nonstationarity. Study applied these procedures to price appreciation
data for the market and 28 mutual funds for the period of 1973-1974. The results indicated a good
deal of noncosistency in the risk-return relationships. The results showed some weak positive
relationships and some weak negative relationships between betas and the rate of return for the
market. On the other hand results showed some weak positive relationships and some weak negative
relationships between betas and alphas. However, no general, statistically significant relationships of
either type were found.
Jonathan B. Berk &Richard C. Green(December 9, 2002 ); ‘Mutual Fund Flows and Performance
in Rational Markets’. From the study they derived that a number of empirical predictions of a
rational model for active portfolio management when managerial talent is a scarce resource and is
dissipated as the scale of operations increases. Many of these predictions reproduce empirical
regularities that often have been taken as evidence of investor irrationality or agency costs between
managers and investors. Not only is the rational model consistent with much of the empirical
evidence, but it is also consistent with a surprisingly high level of skill amongst active managers.
In order to analyze the market-timing performance of mutual funds a study was conducted by
Henriksson (1984). For this purpose a sample of 116 open-end mutual funds from February 1968 to
June1980 was taken. By using parametric and nonparametric techniques author examined the
performance of these open-end mutual funds using monthly data. The returns data included all
dividends paid by the fund and were net of all management costs and fees. Both the parametric and
nonparametric tests showed that mutual fund managers were unable to follow a successful
investment strategy. The results also showed that no evidence was found that forecasters were more
successful in the market-timing activity with respect to predicting large changes in the value of the
market portfolio relative to smaller changes.
Ippolito (1989) conducted a research to analyze the efficiency in capital markets when information
is costly to obtain. Sample of 143 mutual funds were reported in the 1965 edition of Wiesenberger.
The analysis was done for the period of 1965-1984. Ippolito (1989) employed CAPM model and
made a comparison of results to those reported in Jenson (1968). The results showed that Risk-
42
adjusted returns in the mutual fund industry, net of fees and expenses, were comparable to returns
available in index funds. Results also indicated that portfolio turnover and management fees were
unrelated to fund performance. The researcher concluded that mutual funds with higher turnover fees
and expenses, earn rates of return sufficiently high to offset the higher charges. Research also
concluded that the mutual funds were efficient in the trading and information-gathering activities.
A research was conducted by Cumby and Jack (1990) to compare the performance of
internationally diversified mutual funds with international equity index and Morgan Stanley Index
for the United States. In this study a sample of fifteen U.S.-based internationally diversified mutual
funds between 1982 and 1988 was used. The performance was then compared with the help of
Jensen (1968) measure and Positive Period Weighting Measure. The results concluded that the
performance of funds individually or as a whole was not higher than the performance of international
equity index. The authors also examined the performance of the funds relative to the Morgan Stanley
index for the United States and found some evidence that the funds outperform the U.S. index.
Doron Avramov and Russ Wermers (2004); ‘Investing in Mutual Funds when Returns are
Predictable’ From the study it found that predictability in mutual fund returns and the overall value
of active Management in an investment based framework. They form optimal portfolios of no-load,
open-end U.S. domestic-equity mutual funds in the presence of predictability (based on business
cycle variables) in (i) manager selectivity and benchmark-timing skills, (ii) mutual fund risk-
loadings, and (iii) benchmark returns. The proposed framework is quite general and applicable to real
investment strategies. Overall, our findings indicate that industries are important in locating
outperforming mutual funds, and that active management adds much more value than documented by
prior studies.
Grinblatt and Sheridan (1992) conducted a research to analyze whether mutual fund performance
relates to past performance. For this purpose a sample of 279 funds was taken. Study divided the
sample into two five year sub periods and calculated the abnormal returns of each fund for each five
year sub period. Similarly the slope coefficient of abnormal returns was computed in a cross-
sectional regression. The results indicated a positive persistence in mutual fund performance and
fund managers were able to earn abnormal returns. Therefore study concluded that the past
performance of a fund provides useful information for investors who were considering an investment
in mutual funds.
43
A research was conducted by Martin et al. (1993) to examine the performance of bond mutual
funds. Samples of bond fund: first sample was designed to eliminate survivorship bias and was
comprised of the 46 non-municipal bond funds for the 10-year period from the beginning of 1979 to
the end of 1988. The second sample consisted of all bond funds that existed at the end of 1991.
Researcher used linear and nonlinear models in order to examine the two samples. The results
showed that bond funds underperform relevant indexes post expenses.
Malkiel (1995) conducted a research to analyze the performance of equity mutual funds for the
period 1971 to 1991. For this purpose study involved a data set that included the returns from all
mutual funds in existence in each year of the period. After analyzing the returns from all funds he
found that mutual funds underperformed the market. Survivorship bias was considered to be the
important part of the analysis. Study also examined the fund returns in the context of the capital asset
pricing framework and neither found any evidence of excess return nor observed any risk return
relationship stated by the capital asset pricing model. Study concluded that it was better for the
investors to purchase a low expense index fund than to select an active fund manager.
Cai et al. (1996) evaluated the performance of Japanese open-type equity funds from 1981 to 1992.
For this purpose a sample of 800 open-type mutual funds run by 9 management companies was
taken. Two benchmarks (value-weighted single-index benchmark and three-factor benchmark) were
used in the analysis. This research used Jensen Measure, Positive Period Weighting (PPW) Measure
and Conditional Jensen Measure in order to evaluate the performance of these funds. The results
showed that value-weighted and equal-weighted portfolios of 800 mutual funds underperform the
single-index benchmark by approximately 7.0% and 6.0%. The results also showed that most of the
funds were inclined to invest more in large stocks.
Otten and Dennis (1999) analyzed the performance of European mutual funds from 1991 through
December 1998. Study also investigated the performance of fund managers along with the influence
of fund characteristics on risk-adjusted performance. For this purpose a sample of 506 funds was
taken and 4-factor model was used. The results indicated that the European mutual funds especially
small cap funds were able to add value and 4 out of 5 countries exhibit significant outperformance at
an aggregate level. The results also revealed positive relation between risk-adjusted return and fund
size and negative relation between risk-adjusted and funds’ expense ratio.
44
Redman (2000) analyzed the risk adjusted returns for five portfolios of international mutual funds.
The study was conducted for three periods: 1985-1994, 1985-1989, and 1990-1994. The performance
was measured by using Treynor (1965) Index Sharpe (1966)’s Index and Jensen’s Alpha and
comparison was made with the U. S. market. Results showed that under Sharpe (1966)’s and Treynor
(1965) indices the performance of portfolios of international mutual funds was higher than the U. S.
market from 1985-1994 and 1985-1989. On the other hand performance of U.S equity portfolio and
the market index was higher than global portfolios from 1990-1994.
Stehle and Olaf (2001) conducted a research to evaluate the open-ended mutual funds risk-adjusted
performance. Study used a data set that included all German funds sold to the public in 1972. The
research analyzed covers the time period of 1973 to 1998. DAX, which included the 30 largest
German stocks and DAX100, which included the 100 largest German stocks were used as
benchmarks for comparison. First of all researchers examined the rates of return of individual funds
with the help of Sharpe (1966) and Jensen measures and then applied the same measures to evaluate
the unweighted average rates of return of all funds. In case of the rates of return of individual funds,
results showed that the funds underperform the appropriate benchmarks by approximately 1.5 % per
year. On the other hand underperformance was reduced by 40 % in case of unweighted average rates
of return. Study also concluded that the large German stock mutual funds, on the average, performed
better than the small ones.
A study was conducted by Otten, and Mark (2002) to compare the performance of European
mutual fund industry with performance of United States fund industry. Sample of 506 European
open-ended mutual funds and 2096 American open-ended mutual funds was taken from January
1991 to December 19979. Study was restricted the sample to purely domestic equity funds with at
least 24 months of data. Results also indicated that European mutual funds had on average a better
performance than the American counterparts and that the small cap mutual funds in both Europe and
the United States outperformed the benchmark and all other mutual funds.
Noulas, John and John (2005) evaluated the risk adjusted performance of Greek equity funds
during the period 1997-2000. This study is based on weekly data for equity mutual funds and
includes 23 equity funds that existed for the whole period under consideration. Mutual funds were
ranked on the techniques used by Treynor (1965), Sharpe (1966) and Jensen. Results showed
positive returns of the stock market for the first three years and negative returns for the fourth year.
The results also indicated that the beta of all funds is smaller than 1 for four-year period.
45
Company profile
Capstocks is a professionally managed stock broking company having an unblemished and
unparalleled service history of more than 23 years and a vibrant tradition of trust, loyalty and
reliability. Capstocks was started by Rajendran.V, the present Managing Director of the company, in
the year 1989. Capstocks is having both online and offline trading facilities. It is the first ISO
9001:2008 certified stock broking firm in India for all services in stock broking and allied activities.
Capstocks has about 180 outlets in various states of India and an international office in
Sharjah,UAE . Capstocks is a member of the National Stock Exchange of India (NSE), Bombay
Stock Exchange (BSE), MCX Stock Exchange (MCX-SX), Depository Participant with the Central
Depository Services (CDSL) and a SEBI-registered Portfolio Manager. Capstocks also offers
commodity services through its subsidiary company Capstocks Finanacial Services Ltd which is a
member of the Multi-Commodity Exchange of India (MCX) and National Commodity Derivative
Exchange (NCDEX).
Management
The Company's Management rests on:
Rajendran. V. (Chairman & Managing Director) Engineer by profession, with in-depth knowledge
and experience in market analysis.
Leela Jeyakumar (Director) Post Graduate with over 18 years experience in stock broking and the in
charge of company's Tamil Nadu operation since 1992.
Meera Sahib. B (Director) Post Graduate with LLB & CAIIB and 28 years of experience in officer /
executive cadre in a major Public Sector Bank
Amjad Hydari (Assistant Vice President) Post Graduate with more than 12 years experience in
various functions of the equity market brokerage.
46
Other Directors
Srinivasan S.IAS. (Director) Former Labor Commissioner and District Collector. Presently,
Chairman and Managing Director, ODEPEC. Prema Rajendran (Director) Graduate in Commerce
with more than 12 years experience. Rajeev Pillai (Executive Director) Engineer By Profession with
wide exposure to International business organisations and consulting firms. Currently heading the
North & West India Operations of Capstocks with head quarter at Mumbai.
ISO Certification
Capstocks has become the first ISO 9001:2008 brokerage in India to get certification for all stock
broking and related financial service activities including Cash Markets, Derivatives, Internet
Trading, Depository Services, Portfolio Management Services, Equity Research and Analysis, NRI
Client Cell and Mutual Funds. The certification was obtained from the renowned United Kingdom
Accreditation Services (UKAS), based on the Assessment by Moody International Certification
Group through ICL Certifications Ltd.
The certificate was handed over at a function held in Trivandrum. Mr. Ashok Kumar Rout, Chief
Operating Officer of the Bombay Stock Exchange Ltd., was the Guest of Honour on the occasion.
Mr. Rajendran V, our Managing Director, received the certificate from Mr. Uwe Saelzle, Director of
Moody International Certification Group, Germany, in the presence of Mr. Sanjeev Chadha, CEO,
ICL Certifications Ltd., handling the Indian operations of the Moody International Certification
Group.
Mr. Dilip Jacob Mathew, our Vice President, handled ISO 9001:2008 implementation as the
Management Representative with assistance from Ms. Sangeetha, Sr. Executuve (QMS), and Mr. M.
Pradeep Kumar, Management Systems Consultant and Trainer. A dedicated team of Managers and
Executives, trained as Internal Quality Auditors in Capstocks, was involved in the Internal
Assessments and improvement processes.
47
Commenting on the certification, Rajendran V, our Managing Director said “We spent nearly 15
months to complete the ISO 9001:2008 certification process. There is a sea change in the
organizational efficiency and day-to-day operations in our Company. The process flow and our
organizational structure from top to bottom have been totally streamlined and the benefits will
definitely be reflected in offering better services with the utmost satisfaction to our clients. As a
result of ISO 9001:2008 implementation programme, Capstocks - having 75 branches covering India
and else where - has been able to improve continually its systems, processes and procedures at the
Head Office and its Branches with better review mechanisms.
With the ISO 9001:2008 recognition under our belt, Quality of Documentation and Communication
has improved. Capstocks will maintain the Quality Management System and also continually
improve the quality of service through regular Management Reviews and Internal Quality Audits. As
part of this project, emphasis is being given to imparting effective training and retraining for
Capstocks Team Members and systematic analysis of activities.
Quality policy
CAPSTOCKS is committed to render the best knowledge-based personalized services in stock
broking and related financial services, complying with all relevant requirements, by continually
improving the competence of manpower and effectiveness of quality management systems,
optimizing technology and infrastructure, thereby enhancing customer satisfaction.
48
Services
1. Online trading
Capstocks has a network of branches with online terminals of NSE and BSE in the Capital market
and Derivative segments. Our clients are assured of prompt order execution through dedicated
phones and expert dealers at our offices.
2. Internet trading
Capstocks offers Internet trading through this site. You can trade through the Internet from the
comforts of your office or home, anywhere in the world. Our dedicated IT systems ensure service up
time and speed, making Internet broking through Capstocks hassle-free. Using the 'easiest' facility
provided by CDSL, our clients can transfer the shares sold by them online without delivery
instruction slips. Additionally, digitally signed contract notes can be sent to clients through E-mail.
3. Depository Services
Capstocks is a member of the Central Depository Services Limited (CDSL), offer depository services
with minimum Annual Maintenance Charges and transaction charges. Account holders can view
their holding position through the Internet. We also offer the " e asi est " facility provided by CDSL
(electronic access to securities information and execution of secured transaction ) through which
clients can give delivery instructions via the Internet.
4. Derivative Trading
We offer trading in the futures and options segment of the National Stock Exchange(NSE). Through
the present derivative trading an investor can take a short-term view on the market for upto a three
months’ perspective by paying a small margin on the futures segment and a small premium in the
options segment. In the case of options, if the trade goes in the opposite direction the maximum loss
will be limited to the premium paid.
49
5. Knowledge Centre
Knowledge Centre activities are intended to provide systematic and structured services mainly to
new investors and also to young aspirant aiming for a career in financial markets. The centre has
three functional areas: the publication Division, the Training centre, and wealth management
advisory service which provide complete investment solutions to investors through knowledge based
personalized service.
6. Equity Research Department
We have a full-fledged Investment Research & Analysis Department to help our clients to make
investment decisions. Our clients can get information on any share they hold or plan to purchase. We
publish a monthly newsletter' CAPSTOCKS INFOLINE ' , which contains our views on the latest
trends in the markets, scrip recommendation, tutorials, news items etc. We also issue a daily
newsletter, ' CAPS TREND ' , which is available in our site . Besides we give intraday calls by SMS,
chat, etc. You can avail yourself of this service by calling :+91-471-2468160, 4013887
7. Portfolio Management services
Capstocks is a SEBI-approved portfolio manager offering discretionary and non-discretionary
schemes to its clients. Capstocks’ portfolio management team keeps track of the markets on a daily
basis and is exposed to a lot of information and analytic tools which an investor would not normally
have access to. Other technicalities pertaining to shares like dividends, rights, bonus, buy-back,
Mergers and Acquisitions are also taken care of by us. Maximize your returns by opting for our PMS
scheme. Please Call +91-471- 4013887,4013882
8. Commodity Trading *
You can trade in commodity futures like gold , silver, crude oil , rubber etc. and take advantage of
the extended trading hours (10 am to 11 pm ) in commodities trading. Do, please Call +91-471-
4013891,9847917187.
9. Mutual Funds, Bonds etc.
We also offer Mutual Funds and Bonds. You can select from a wide range of Mutual Funds and
Bonds available in the markets today. You can get the service by Calling : +91-471-
4013885,4013886,98473 19187.
50
10. NRI CELL
We have a well-organized NRI Cell functioning exclusively to meet the requirements of our clients
residing outside India. We are committed to provide them timely assistance by placing their orders,
giving them valuable suggestions concerning their investments etc. Also we help those NRI’s who
desire to open accounts on repatriation basis. Facilities are offered to those clients who are interested
in Internet trading by activating it, in co-ordination with the e-trading department.
11. Currency Trading
Capstocks is a member of currency derivatives segment of National Stock Exchange (NSE) and
MCX Stock Exchange (MCX-SX). Currency Derivatives are a new asset class which was earlier not
permitted for trading to all Indian residents. Currently the trading is based on four underlying
currencies viz., US Dollar, Euro, Pound sterling, Japanese Yen. Please Call +91-471-4093343,
09961886876.
12. Pan Service Agent of UTI
Capstocks & Securities (India) Pvt. Ltd. has become authorized PAN card service agent (PSA) of
UTI. Now pan applications can be submitted to any of the following offices, in addition to Head
office.( Sasthamangalam, Sreekaryam, Technopark, and Pattom, in Trivandrum) Kollam, Alappuzha,
Thiruvalla, Ernakulam, Thrissur, Irinjalakkuda, Thodupuzha, Calicut, Chennai RO, Mangalore, Navi
Mumbai, and Nagercoil RO. Capstocks offers this value added service to our privileged customers,
existing as well as new customers at nominal processing charges.
51
INDUSTRY PROFILE
The trading on stock exchanges in India used to take place through open outcry without use of
information technology for immediate matching or recording of trades. This was time consuming and
inefficient. This imposed limits on trading volumes and efficiency. In order to provide efficiency,
liquidity and transparency, NSE introduced a nation-wide on-line fully-automated screen based
trading system (SBTS) where a member can punch into the computer quantities of securities and the
prices at which he likes to transact and the transaction is executed as soon as it finds a matching sale
or buy order from a counter party. SBTS electronically matches orders on a strict price/time priority
and hence cuts down on time, cost and risk of error, as well as on fraud resulting in improved
operational efficiency. It allows faster incorporation of price sensitive information into prevailing
prices, thus increasing the informational efficiency of markets. It enables market participants,
irrespective of their geographical locations, to trade with one another simultaneously, improving the
depth and liquidity of the market. It provides full anonymity by accepting orders, big or small, from
members without revealing their identity, thus providing equal access to everybody. It also provides
a perfect audit trail, which helps to resolve disputes by logging in the trade execution process in
entirety. This sucked liquidity from other exchanges and in the very first year of its operation, NSE
became the leading stock exchange in the country, impacting the fortunes of other exchanges and
forcing them to adopt SBTS also.
Today India can boast that almost 100% trading take place through electronic order
matching. Technology was used to carry the trading platform from the trading hall of stock
exchanges to the premises of brokers. NSE carried the trading platform further to the PCs at the
residence of investors through the Internet and to handheld devices through WAP for convenience of
mobile investors. This made a huge difference in terms of equal access to investors in a
geographically vast country like India. NSE has main computer which is connected through Very
Small Aperture Terminal (VSAT) installed at its office. The main computer runs on a fault tolerant
STRATUS mainframe computer at the Exchange. Brokers have terminals (identified as the PCs in
the Figure 1) installed at their premises which are connected through VSATs/leased lines/modems.
An investor informs a broker to place an order on his behalf. The broker enters the order through his
PC, which runs under Windows NT and sends signal to the Satellite via VSAT/leased line/modem.
52
Indian stock market marks to be one of the oldest stock market in Asia. It dates back to the
close of 18th century when the East India Company used to transact loan securities. In the 1830s,
trading on corporate stocks and shares in Bank and Cotton presses took place in Bombay. Though the
trading was broad but the brokers were hardly half dozen during 1840and 1850.In 1860, the exchange
flourished with 60 brokers. In fact the 'Share Mania' in India began with the American Civil War
broke and the cotton supply from the US to Europe stopped.
Further, the brokers increased to 250. At the end of the war in 1874, the market found a place
in a street (now called Dalal Street). In 1887, "Native Share and Stock Brokers' Association" was
established. In 1895, the exchange acquired a premise in the street, which was inaugurated in 1899.
National Stock Exchange (NSE)
The National Stock Exchange of India (NSE) was incorporated in November 1992 as a tax-paying
company. It is recognized under Securities Contracts (Regulation) Act, 1956 in 1993 as a stock
exchange. In June 1994, it commenced operations in the Wholesale Debt Market (WDM). In
November, the same year, the Capital Market (Equities) segment commenced operations and the
Derivatives segment in June 2000.
Bombay Stock Exchange (BSE)
A very common name for all traders in the stock market, BSE, stands for Bombay Stock
Exchange. The oldest market not only in the country, but also in Asia. The early days of BSE was
known as "The Native Share & Stock Brokers Association." It was established in the year 1875 and
became the first stock exchange in the country to be recognized by the government. In 1956, BSE
obtained a permanent recognition from the Government of India under the Securities Contracts
(Regulation) Act, 1956.
53
THE MAIN PLAYERS IN THE INDUSTRY
The financials and investment industry is a highly competitive in nature with almost well
established firms diversifying and entering into this industry. As of today there are Over 2000
brokers, 10000 sub brokers and 1 crore investors. It is highly competitive with entry of new
aggressive players. Retail broking is highly fragmented industry with falling brokerages Value added
services and Online trading, the new fad.
INDIABULLS FINANCIAL SERVICES LTD.
Indiabulls is India’s leading Financial Services and Real Estate Company having presence
over 414 locations in more than 124 cities. Indiabulls serves the financial needs of more than
3,00,000 customers with its wide range of financial services and products from securities, derivatives
trading, depositary services, research & advisory services, insurance, consumer secured & unsecured
credit, loan against shares and mortgage & housing finance. The market capitalization of Indiabulls
is around USD 800 million, and the consolidated net worth of the company is around USD 500
million.
KARVY SECURITIES LTD
KARVY, is a premier integrated financial services provider, and ranked among the top five
in the country in all its business segments, services over 16 million individual investors in various
capacities, and provides investor services to over 300 corporates, comprising the who is who of
Corporate India. The birth of Karvy was on a modest scale in 1981. Karvy Consultants Limited.
Thus over the last 20 years Karvy has traveled the success route, towards building a reputation as an
integrated financial services provider, offering a wide spectrum of services.
INDIAINFOLINE
IndiaInfoline was founded by a group of professionals in 1995, a seemingly distant past in
the Internet age. Their meticulous research was published and distributed in printed form to a client
base comprising the who's who of Indian business including leading MNCs, investment banks and
consulting firms. The quality of research was highly acclaimed and soon became the industry
benchmark. Over the last few years, their research coverage has grown to cover practically all
companies, sectors, economy and financial markets. The breadth and depth of their content is
unmatched - stock markets, mutual funds, personal finance, taxation and economy.
54
SHARE KHAN
Share khan is a pioneer in equity market. Share khan is among the top 3 branded retail service
providers. Largest network of branded broking outlets in the country servicing 100,000 clients.
Sharekhan not only has a strong offline presence but also provides automated online trading
services. To sum up, Sharekhan brings to you a user- friendly online trading facility, coupled with a
wealth of content that will help you stalk the right shares. In fact Sharekhan runs India's largest chain
of share shops with around 250 outlets in 113 cities!
GEOJIT FINANCIAL SERVICES LTD
Today Geojit Financial Services Ltd is one of the largest and most respected retail brokerage
companies from India where Kerala state Industrial Development Corporation (KSIDC) has taken
equity participation making it the only brokerage company in India where a state financial
corporation has taken equity participation. Geojit serves more than 250,000 clients who are serviced
through 350 branch offices and handles trading turnover of more than US$ 3000 million per year. It
is also the first company to offer Internet based broking service in India.
SHAREWEALTH SECURITIES LTD
Share wealth Securities Ltd is the first corporate member of National Stock Exchange of India
Ltd, Bombay Stock Exchange Ltd and MCX Stock Exchange Ltd (MCX-SX) from THRISSUR, the
Cultural Capital of Kerala. Share wealth is also a Depository Participant with CDSL (Central
Depository Services (India) Ltd). Share wealth Securities Ltd has two group companies, Share
wealth Commodities Pvt Ltd (Member: MCX, NCDEX, NMCE, ICEX & NSEL) and Share wealth
Financial Services Ltd (AMFI Registered Mutual Fund Distributor). Share wealth has a group
(Overseas Joint Venture) company at Abu Dhabi, Share wealth Financial Consultancy LLC.
Registered & Corporate offices of Share wealth Group of companies are at Thrissur.
55
NET ASSET VALUE OF EQUITY DIVERSIFIED FUND
Graph No : 1
May
-09
Jul-0
9
Sep-0
9
Nov-09
Jan-1
0
Mar
-10
May
-10
Jul-1
0
Sep-1
0
Nov-10
Jan-1
1
Mar
-11
May
-11
Jul-1
1
Sep-1
1
Nov-11
Jan-1
2
Mar
-12
0
10
20
30
40
50
60
70
NAV of Canara Robeco equity diversified (G)
NAV
Interpretation
From the chart it shows the NAV of the Canara Robeco equity diversified (G) based on the past performance of the last three years. The lowest NAV is 30.27 and the largest value is 58.10.
Graph No : 2
May
-09
Jul-0
9
Sep-0
9
Nov-09
Jan-1
0
Mar
-10
May
-10
Jul-1
0
Sep-1
0
Nov-10
Jan-1
1
Mar
-11
May
-11
Jul-1
1
Sep-1
1
Nov-11
Jan-1
2
Mar
-12
0
5
10
15
20
25
30
kotak contra fund(G)
NAV
Interpretation
From the chart it shows the NAV of the kotak contra fund(G) based on the past performance of the last three years. The lowest NAV is 12.668 and the largest value is 24.82.
Graph No : 3
56
May
-09
Jul-0
9
Sep-0
9
Nov-09
Jan-1
0
Mar
-10
May
-10
Jul-1
0
Sep-1
0
Nov-10
Jan-1
1
Mar
-11
May
-11
Jul-1
1
Sep-1
1
Nov-11
Jan-1
2
Mar
-12
0
2
4
6
8
10
12
14
NAV of AIG India equity fund(G)
NAV
Interpretation
From the chart it shows the NAV of AIG India equity fund(G) based on the past performance of the last three years. The lowest NAV is 6.953 and the largest value is 13.27.
Graph No : 4
May
-09
Jul-0
9
Sep-0
9
Nov-09
Jan-1
0
Mar
-10
May
-10
Jul-1
0
Sep-1
0
Nov-10
Jan-1
1
Mar
-11
May
-11
Jul-1
1
Sep-1
1
Nov-11
Jan-1
2
Mar
-12
0
5
10
15
20
25
NAV of Templeton india equity (G)
NAV
Interpretation
From the chart it shows the NAV of Templeton india equity (G) based on the past performance of the last three years. The lowest NAV is 13.52 and the largest value is 22.09.
Graph No : 5
57
May
-09
Jul-0
9
Sep-0
9
Nov-09
Jan-1
0
Mar
-10
May
-10
Jul-1
0
Sep-1
0
Nov-10
Jan-1
1
Mar
-11
May
-11
Jul-1
1
Sep-1
1
Nov-11
Jan-1
2
Mar
-12
0
2
4
6
8
10
12
14
16
18
NAV of Tata capital builder fund (G)
NAV
Interpretation
From the chart it shows the NAV of Tata capital builder fund (G) based on the past performance of the last three years. The lowest NAV is 7.961and the largest value is 16.46.
Graph No : 6
May
-09
Jul-0
9
Sep-0
9
Nov-09
Jan-1
0
Mar
-10
May
-10
Jul-1
0
Sep-1
0
Nov-10
Jan-1
1
Mar
-11
May
-11
Jul-1
1
Sep-1
1
Nov-11
Jan-1
2
Mar
-12
0
5
10
15
20
25
30
NAV of birla sunlife next generation fund(G)
NAV
Interpretation
From the chart it shows the NAV of Birla Sunlife next generation fund (G) based on the past performance of the last three years. The lowest NAV is 13.31 and the largest value is 26.88.
Graph No : 7
58
May
-09
Jul-0
9
Sep-0
9
Nov-09
Jan-1
0
Mar
-10
May
-10
Jul-1
0
Sep-1
0
Nov-10
Jan-1
1
Mar
-11
May
-11
Jul-1
1
Sep-1
1
Nov-11
Jan-1
2
Mar
-12
0
10
20
30
40
50
60
70
NAV of sbi magnum contra fund(G)
NAV
Interpretation
From the chart it shows the NAV of SBI magnum contra fund(G) based on the past performance of the last three years. The lowest NAV is 36.66 and the largest value is 65.58.
Graph No : 8
May
-09
Jul-0
9
Sep-0
9
Nov-09
Jan-1
0
Mar
-10
May
-10
Jul-1
0
Sep-1
0
Nov-10
Jan-1
1
Mar
-11
May
-11
Jul-1
1
Sep-1
1
Nov-11
Jan-1
2
Mar
-12
0
10
20
30
40
50
60
70
80
NAV of UTI MNC fund (G)
NAV
Interpretation
From the chart it shows the NAV of UTI MNC fund (G) based on the past performance of the last three years. The lowest NAV is 32.98 and the largest value is 70.06.
Graph No : 9
59
May
-09
Jul-0
9
Sep-0
9
Nov-09
Jan-1
0
Mar
-10
May
-10
Jul-1
0
Sep-1
0
Nov-10
Jan-1
1
Mar
-11
May
-11
Jul-1
1
Sep-1
1
Nov-11
Jan-1
2
Mar
-12
23
24
25
26
27
28
29
30
NAV of escorts oppertunities fund(G)
NAV
Interpretation
From the chart it shows the NAV of Escorts opportunities fund(G) based on the past
performance of the last three years. The lowest NAV is 25.114 and the largest value is 29.26.
Graph No : 10
May
-09
Jul-0
9
Sep-0
9
Nov-09
Jan-1
0
Mar
-10
May
-10
Jul-1
0
Sep-1
0
Nov-10
Jan-1
1
Mar
-11
May
-11
Jul-1
1
Sep-1
1
Nov-11
Jan-1
2
Mar
-12
0
5
10
15
20
25
NAV of Tata contra fund (G)
NAV
Interpretation
From the chart it shows the NAV of Tata contra fund (G) based on the past performance of
the last three years. The lowest NAV is 9.49 and the largest value is 19.56.
60
NET ASSE VALUE OF LARGE CAP FUNDS
Graph no:1
May
-09
Jul-0
9
Sep-0
9
Nov-09
Jan-1
0
Mar
-10
May
-10
Jul-1
0
Sep-1
0
Nov-10
Jan-1
1
Mar
-11
May
-11
Jul-1
1
Sep-1
1
Nov-11
Jan-1
2
Mar
-12
0
2
4
6
8
10
12
14
16
18
NAV of ICICI Prudential focused blue chip Equity fund
NAV
Interpretation
The graph shows the NAV of ICICI Prudential focused blue chip Equity fund . the lowest NAV is 9.16 and largest NAV is 17.09.
Graph No: 2
May
-09
Jul-0
9
Sep-0
9
Nov-09
Jan-1
0
Mar
-10
May
-10
Jul-1
0
Sep-1
0
Nov-10
Jan-1
1
Mar
-11
May
-11
Jul-1
1
Sep-1
1
Nov-11
Jan-1
2
Mar
-12
0
5
10
15
20
25
30
35
NAV of UTI Oppertunities fund(G)
NAV
Interpretation
The graph shows the NAV of UTI Opportunities fund(G). the lowest NAV is 15.43 and largest NAV is 29.78.
61
Graph No:3
May
-09
Jul-0
9
Sep-0
9
Nov-09
Jan-1
0
Mar
-10
May
-10
Jul-1
0
Sep-1
0
Nov-10
Jan-1
1
Mar
-11
May
-11
Jul-1
1
Sep-1
1
Nov-11
Jan-1
2
Mar
-12
0
5
10
15
20
25
30
35
40
45
NAV of Fidelity Equity fund
NAV
Interpretation
The graph shows the NAV of Fidelity Equity fund. the lowest NAV is 19.07 and largest NAV is 39.31.
Graph No:4
May
-09
Jul-0
9
Sep-0
9
Nov-09
Jan-1
0
Mar
-10
May
-10
Jul-1
0
Sep-1
0
Nov-10
Jan-1
1
Mar
-11
May
-11
Jul-1
1
Sep-1
1
Nov-11
Jan-1
2
Mar
-12
0
50
100
150
200
250
NAV of Franklin Indian blue chip fund (G)
NAV
Interpretation
The graph shows the NAV of Franklin Indian blue chip fund (G). the lowest NAV is 127.15 and largest NAV is 232.39.
62
Graph No:5
May
-09
Jul-0
9
Sep-0
9
Nov-09
Jan-1
0
Mar
-10
May
-10
Jul-1
0
Sep-1
0
Nov-10
Jan-1
1
Mar
-11
May
-11
Jul-1
1
Sep-1
1
Nov-11
Jan-1
2
Mar
-12
0
50
100
150
200
250
NAV of HDFC Top 200 fund (G)
NAV
Interpretation
The graph shows the NAV of HDFC Top 200 fund (G). the lowest NAV is 115.48 and largest NAV is 236.07.
Graph No:6
May
-09
Jul-0
9
Sep-0
9
Nov-09
Jan-1
0
Mar
-10
May
-10
Jul-1
0
Sep-1
0
Nov-10
Jan-1
1
Mar
-11
May
-11
Jul-1
1
Sep-1
1
Nov-11
Jan-1
2
Mar
-12
0
2
4
6
8
10
12
14
16
NAV of JP MORGAN INDIA EQUITY FUND
NAV
Interpretation
The graph shows the NAV of JP MORGAN INDIA EQUITY FUND, the lowest NAV is 7.75 and largest NAV is 15.02.
Graph No:3
63
May
-09
Jul-0
9
Sep-0
9
Nov-09
Jan-1
0
Mar
-10
May
-10
Jul-1
0
Sep-1
0
Nov-10
Jan-1
1
Mar
-11
May
-11
Jul-1
1
Sep-1
1
Nov-11
Jan-1
2
Mar
-12
0
2
4
6
8
10
12
14
16
18
NAV of RELLIANCE QUANT PLUS FUND RETAIL PLAN [G]
NAV
Interpretation
The graph shows the NAV of RELLIANCE QUANT PLUS FUND RETAIL PLAN [G], the lowest NAV is 7.79 and largest NAV is 15.60.
Graph No:3
May
-09
Jul-0
9
Sep-0
9
Nov-09
Jan-1
0
Mar
-10
May
-10
Jul-1
0
Sep-1
0
Nov-10
Jan-1
1
Mar
-11
May
-11
Jul-1
1
Sep-1
1
Nov-11
Jan-1
2
Mar
-12
0
5
10
15
20
25
30
35
40
45
50
NAV of ING Core EQUITY FUND
NAV
Interpretation
The graph shows the NAV of ING Core Equity fund , the lowest NAV is 23.18 and largest NAV is 43.18.
Graph No:3
64
May
-09
Jul-0
9
Sep-0
9
Nov-09
Jan-1
0
Mar
-10
May
-10
Jul-1
0
Sep-1
0
Nov-10
Jan-1
1
Mar
-11
May
-11
Jul-1
1
Sep-1
1
Nov-11
Jan-1
2
Mar
-12
0
5
10
15
20
25
30
35
40
45
NAV of HSBC INDIA OPPORTUNITIES FUND
NAV
Interpretation
The graph shows the NAV of HSBC INDIA OPPORTUNITIES FUND , the lowest NAV is 22.84 and largest NAV is 39.12.
Graph No:3
May
-09
Jul-0
9
Sep-0
9
Nov-09
Jan-1
0
Mar
-10
May
-10
Jul-1
0
Sep-1
0
Nov-10
Jan-1
1
Mar
-11
May
-11
Jul-1
1
Sep-1
1
Nov-11
Jan-1
2
Mar
-12
0
5
10
15
20
25
30
35
40
45
NAV of BNP PARIBAS EQUITY FUND
NAV
Interpretation
The graph shows the NAV of BNP PARIBAS EQUITY FUND , the lowest NAV is 22.64 and largest NAV is 38.74.
65
1.Risk Analysis- Mean return of Equity Diversified Funds
Table no : 1
Graph No : 1
canara
robeco
equity
diversi
fied (G
)
Tata
contra
fund (G
)
kotak
contra
fund(G
)
AIG India
equity
fund(G
)
UTI MNC fu
nd (G)
Templet
on india
equity
(G)
tata c
apita
l build
er fund (G
)
birla su
nlife nex
t gen
eration fu
nd(G)
sbi m
agnum co
ntra fu
nd(G)
escorts
oppertunities
fund(G)
0
0.5
1
1.5
2
2.5
Risk Analysis- Mean return of Equity Diversified Funds
Mean
Interpretation of data
From the above table it is understood that , UTI MNC fund (G) having the high return(2.271), and
Templeton India equity (G) (.3782) considered to be the poorest according to their return.
2. Variance of equity diversified funds
Table No : 2
66
Schemes MeanCanara Robeco equity diversified (G) 1.9091Tata contra fund (G) 1.9954Kotak contra fund(G) 1.6222AIG India equity fund(G) 1.832UTI MNC fund (G) 2.271Templeton India equity (G) 0.3782Tata capital builder fund (G) 1.8488Birla sunlife next generation fund(G) 2.0243SBI magnum contra fund(G) 1.2234Escorts oppertunities fund(G) 0.41807
Graph No : 2
canar
a robec
o equity
dive
rsifi
ed (G
)
Tata
contra
fund (G
)
kota
k contra
fund(G
)
AIG In
dia eq
uity fu
nd(G)
UTI M
NC fund (G
)
Tem
pleton in
dia eq
uity (G
)
tata
capita
l build
er fu
nd (G)
birla s
unlife n
ext g
ener
ation fu
nd(G)
sbi m
agnum
contra
fund(G
)
esco
rts o
ppertu
nities
fund(G
)0
10
20
30
40
50
60
Variance of equity diversified funds
Variance
Interpretation
From the table it shows that the Tata capital builder fund having the highest variance (52.697) and Escorts opportunities fund shows the lowest variance (5.2) during the period of the study.
3.Covariance of equity diversified funds
67
schemes VarianceCanara Robeco equity diversified (G) 29.309Tata contra fund (G) 36.969Kotak contra fund(G) 46.511AIG India equity fund(G) 34.8278UTI MNC fund (G) 19.33Templeton India equity (G) 47.57Tata capital builder fund (G) 52.697Birla sunlife next generation fund(G) 32.682SBI magnum contra fund(G) 44.73Escorts oppertunities fund(G) 5.2
Table No : 3
Graph No: 3
canara
robeco
equity
diversi
fied (G
)
Tata
contra
fund (G
)
kotak
contra
fund(G
)
AIG India
equity
fund(G
)
UTI MNC fu
nd (G)
Templet
on india
equity
(G)
tata c
apita
l build
er fund (G
)
birla su
nlife nex
t gen
eration fu
nd(G)
sbi m
agnum co
ntra fu
nd(G)
escorts
oppertunities
fund(G)
-1
-0.5
0
0.5
1
1.5
2
Covariance
Covariance
Interpretation
Co-variance helps in finding out the interactive risk. From the graph it shows that the co-variance
except Templeton India equity funds are positive. It reveals that the interactive risk of Templeton is
negative and all others are positive.
4.Standard Deviation of equity diversified funds
68
schemes CovarianceCanara Robeco equity diversified (G) 1.217Tata contra fund (G) 0.4759Kotak contra fund(G) 1.339AIG India equity fund(G) 1.231UTI MNC fund (G) 0.7063Templeton India equity (G) -0.631Tata capital builder fund (G) 1.498Birla sunlife next generation fund(G) 1.242SBI magnum contra fund(G) 1.376Escorts oppertunities fund(G) 0.244
Table No : 4
Graph No: 4
canara
robeco
equity
diversi
fied (G
)
Tata
contra
fund (G
)
kotak
contra
fund(G
)
AIG India
equity
fund(G
)
UTI MNC fu
nd (G)
Templet
on india
equity
(G)
tata c
apita
l build
er fund (G
)
birla su
nlife nex
t gen
eration fu
nd(G)
sbi m
agnum co
ntra fu
nd(G)
escorts
oppertunities
fund(G)
012345678
Standard Deviation
standard Deviation
Interpretation of data
Escorts Oppertunities fund is having the least SD (2.281) in this category, so the return tends to
stable.Tata Capital buider fund is having the highest SD (7.225). So it is the most risky fund in this
category.
5.Beta of equity diversified funds
69
schemes Standard DeviatioCanara Robeco equity diversified (G) 5.413Tata contra fund (G) 6.08Kotak contra fund(G) 6.8198AIG India equity fund(G) 5.901UTI MNC fund (G) 4.397Templeton India equity (G) 6.897Tata capital builder fund (G) 7.225Birla sunlife next generation fund(G) 5.71SBI magnum contra fund(G) 6.668Escorts oppertunities fund(G) 2.281
Table No : 5
Graph No: 4
canara
robeco
equity
diversi
fied (G
)
Tata
contra
fund (G
)
kotak
contra
fund(G
)
AIG India
equity
fund(G
)
UTI MNC fu
nd (G)
Templet
on india
equity
(G)
tata c
apita
l build
er fund (G
)
birla su
nlife nex
t gen
eration fu
nd(G)
sbi m
agnum co
ntra fu
nd(G)
escorts
oppertunities
fund(G)
-0.02-0.01
00.010.020.030.040.050.06
Beta
Beta
Interpretation of data
Beta of a fund indicates the market risk ie., volatility of return in relation to market return. Tata
contra fund is having the a lower beta value (-0.0132) shows opposite movement with the
market..Hence the market risk is low. Sbi magnum having highest beta value (.0468). So market
movements are more reflected in this fund’s return.
CAGR of equity diversified funds
70
schemes BetaCanara Robeco equity diversified (G) 0.0415Tata contra fund (G) 0.0128Kotak contra fund(G) 0.0288AIG India equity fund(G) 0.0354UTI MNC fund (G) 0.0365Templeton India equity (G) -0.0132Tata capital builder fund (G) 0.0273Birla sunlife next generation fund(G) 0.038SBI magnum contra fund(G) 0.0308Escorts oppertunities fund(G) 0.0468
Table No : 6
Graph No: 6
canara
robeco
equity
diversi
fied (G
)
Tata
contra
fund (G
)
kotak
contra
fund(G
)
AIG India e
quity fu
nd(G)
UTI MNC fu
nd (G)
Templet
on india e
quity (G
)
tata c
apita
l build
er fund (G
)
birla su
nlife nex
t gen
eration fu
nd(G)
sbi m
agnum co
ntra fu
nd(G)
escorts
oppertunities
fund(G)
0.00%5.00%
10.00%15.00%20.00%25.00%30.00%
CAGR
CAGR
Interpretation of data
From the table it is understood that UTI MNC fund is having the high growth rate of 28.55%,
and Escorts opportunities fund having the lower growth rate of 4.68% during the period of study.
Alpha of equity diversified funds
Table No : 7
71
schemes CAGRCanara Robeco equity diversified (G) 22.75%Tata contra fund (G) 23.44%Kotak contra fund(G) 17.64%AIG India equity fund(G) 21.35%UTI MNC fund (G) 28.55%Templeton India equity (G) 1.39%Tata capital builder fund (G) 20.48%Birla sunlife next generation fund(G) 24.09%SBI magnum contra fund(G) 12.51%Escorts oppertunities fund(G) 4.68%
schemes alphacanara robeco equity diversified (G) 0.009722Tata contra fund (G) 0.063409kotak contra fund(G) 0.042231AIG India equity fund(G) 0.024097UTI MNC fund (G) 0.006059Templeton india equity (G) 0.093942tata capital builder fund (G) 0.038478birla sunlife next generation fund(G) 0.012027sbi magnum contra fund(G) 0.051269escorts oppertunities fund(G) 0.069384
Graph No : 7
canara
robeco
equity
diversi
fied (G
)
Tata
contra
fund (G
)
kotak
contra
fund(G
)
AIG India
equity
fund(G
)
UTI MNC fu
nd (G)
Templet
on india
equity
(G)
tata c
apita
l build
er fund (G
)
birla su
nlife nex
t gen
eration fu
nd(G)
sbi m
agnum co
ntra fu
nd(G)
escorts
oppertunities
fund(G)
0
0.02
0.04
0.06
0.08
0.1
Alpha of equity diversified funds
alpha
Interpretation of data
Among the funds Templeton India Equity fund is having high positive alpha (.0939), shows it
earned more than the rate of market risk. Templeton shows the lowest Alpha, it reveals that the fund
earned good return to the market risk involved in it .
Sharp Ratio of Equity diversified fund
Table No : 8
72
schemes Mean Risk free rate
standard Deviation
Sp
canara robeco equity diversified (G) 1.9091 0.26 5.413 0.304655Tata contra fund (G) 1.9954 0.26 6.08 0.285428kotak contra fund(G) 1.6222 0.26 6.8198 0.199742AIG India equity fund(G) 1.832 0.26 5.901 0.266396UTI MNC fund (G) 2.271 0.26 4.397 0.457357Templeton india equity (G) 0.3782 0.26 6.897 0.017138tata capital builder fund (G) 1.8488 0.26 7.225 0.219903birla sunlife next generation fund(G) 2.0243 0.26 5.71 0.308984sbi magnum contra fund(G) 1.2234 0.26 6.668 0.144481escorts oppertunities fund(G) 0.41807 0.26 2.281 0.069299
Graph No : 8
canara
robeco
equity
diversi
fied (G
)
Tata c
ontra fu
nd (G)
kotak
contra
fund(G)
AIG India e
quity fu
nd(G)
UTI MNC fu
nd (G)
Templet
on india e
quity (G
)
tata c
apita
l build
er fund (G
)
birla su
nlife next
genera
tion fund(G)
sbi magn
um contra
fund(G)
escorts
oppertunities
fund(G)
0
0.1
0.2
0.3
0.4
0.5
Sharp Ratio
Sp
Interpretation of data
Sharpe Ratio indicates the excess return per unit of total risk (Standard Deviation) assumed by the
investor over some risk free rate of return.
UTI MNC fund (0.45) is having the highest Sharpe ratio. Hence it is the best fund. Templeton India Equity
fund is considered to be worst performers with this ratio.
Treynor Ratio of Equity Diversified fund
Table No : 9
schemes Mean Rf Beta Treynor
73
RatioCanara robeco equity diversified (G) 1.9091 0.26 0.0415 39.73735Tata contra fund (G) 1.9954 0.26 0.0128 135.5781Kotak contra fund(G) 1.6222 0.26 0.0288 47.29861AIG India equity fund(G) 1.832 0.26 0.0354 44.40678UTI MNC fund (G) 2.271 0.26 0.0365 55.09589Templeton india equity (G) 0.3782 0.26 -0.0132 -8.95455Tata capital builder fund (G) 1.8488 0.26 0.0273 58.1978Birla sunlife next generation fund(G) 2.0243 0.26 0.038 46.42895SBI magnum contra fund(G) 1.2234 0.26 0.0308 31.27922Escorts opportunities fund(G) 0.41807 0.26 0.0468 3.377564
Graph No : 9
canar
a robec
o equity
diversi
fied (G
)
Tata
contra
fund (G
)
kotak
contra
fund(G
)
AIG In
dia eq
uity fu
nd(G)
UTI M
NC fund (G
)
Templet
on india
equity
(G)
tata c
apita
l build
er fu
nd (G)
birla s
unlife nex
t gen
erati
on fund(G
)
sbi m
agnum co
ntra fu
nd(G)
esco
rts opper
tunities
fund(G
)-20
020406080
100120140160
Treynor Ratio
Treynor Ratio
Interpretation
Treynor Ratio indicates the excess return per unit of market risk (beta) assumed by the investor over some risk
free rate of return. Here risk free rate of return is 9.5%.
Tata contra fund has the highest Treynor ratio (135.57) & Templeton India Equity fund is having negative
ratio of 8.95.
Analysis of Large cap fund
Table No :1
74
Schemes MeanICICI Prudential focused blue chip Equity fund 1.735UTI Oppertunities fund(G) 1.96Fedelity Equity fund 1.836Franklin Indian blue chip fund (G) 1.593HDFC Top 200 fund (G) 1.832JP MORGAN INDIA EQUITY FUND 1.545RELLIANCE QUANT PLUS FUND RETAIL PLAN [G] 1.676ING Core Equity Fund 1.474HSBC INDIA OPPORTUNITIES FUND 1.316BNP PARIBAS EQUITY FUND 1.431
Graph No : 1
ICIC
I Pru
dential
focu
sed b
lue
chip
Equity
fund
UTI Opper
tuniti
es fu
nd(G)
Fedeli
ty Eq
uity fu
nd
Fran
klin In
dian b
lue c
hip fu
nd (G)
HDFC To
p 200 fu
nd (G)
JP M
ORGAN INDIA
EQUITY
FUND
RELLIA
NCE QUANT P
LUS F
UND RET
AIL PLA
N [G]
ING C
ore Eq
uity Fu
nd
HSBC IN
DIA O
PPORTUNITI
ES FU
ND
BNP PARIB
AS EQUIT
Y FUND0
0.51
1.52
2.5
Mean
Mean
Interpretation of data
From the above table it is understood that , UTI Opportunities fund(G)having the high return(1.96), and
HSBC INDIA OPPORTUNITIES FUND (1.431) considered to be the poorest according to their return.
Variance Of Large cap fund
Table No : 2
75
Schemes Variance
ICICI Prudential focused blue chip Equity fund 25.573UTI Oppertunities fund(G) 36.434Fedelity Equity fund 31.474Franklin Indian blue chip fund (G) 34.779HDFC Top 200 fund (G) 44.097JP MORGAN INDIA EQUITY FUND 30.399RELLIANCE QUANT PLUS FUND RETAIL PLAN [G] 73.315ING Core Equity Fund 35.342HSBC INDIA OPPORTUNITIES FUND 22.44BNP PARIBAS EQUITY FUND 54.7
Graph No : 2
ICIC
I Pru
dential
focu
sed b
lue c
hip Eq
uity fu
nd
UTI Opper
tuniti
es fu
nd(G)
Fedeli
ty Eq
uity fu
nd
Fran
klin In
dian b
lue c
hip fu
nd (G)
HDFC To
p 200 fu
nd (G)
JP M
ORGAN INDIA
EQUITY
FUND
RELLIA
NCE QUANT P
LUS F
UND RET
AIL PLA
N [G]
ING C
ore Eq
uity Fu
nd
HSBC IN
DIA O
PPORTUNITI
ES FU
ND
BNP PARIB
AS EQUITY
FUND0
20
40
60
80
Variance
Variance
Interpretation
From the table it shows that the RELLIANCE QUANT PLUS FUND RETAIL PLAN [G] having the
highest variance (73.315) and HSBC INDIA OPPORTUNITIES FUND shows the lowest variance
(5.2) during the period of the study.
Table No: 3
Standard Deviation of Large cap fund
Schemes SDICICI Prudential focused blue chip Equity fund 5.056
76
UTI Oppertunities fund(G) 6.036Fedelity Equity fund 5.61Franklin Indian blue chip fund (G) 5.897HDFC Top 200 fund (G) 6.641JP MORGAN INDIA EQUITY FUND 5.514RELLIANCE QUANT PLUS FUND RETAIL PLAN [G] 8.56ING Core Equity Fund 5.95HSBC INDIA OPPORTUNITIES FUND 4.738BNP PARIBAS EQUITY FUND 7.396
Graph No : 3
ICIC
I Pru
dential
focu
sed b
lue c
hip Eq
uity fu
nd
UTI Opper
tuniti
es fu
nd(G)
Fedeli
ty Eq
uity fu
nd
Fran
klin In
dian b
lue c
hip fu
nd (G)
HDFC To
p 200 fu
nd (G)
JP M
ORGAN INDIA
EQUITY
FUND
RELLIA
NCE QUANT P
LUS F
UND RET
AIL PLA
N [G]
ING C
ore Eq
uity Fu
nd
HSBC IN
DIA O
PPORTUNITI
ES FU
ND
BNP PARIB
AS EQUITY
FUND0
2
4
6
8
Standard Deviation
SD
Interpretation of data
HSBC INDIA OPPORTUNITIES FUND fund is having the least SD (4.738) in this category, so the
return tends to stable. RELLIANCE QUANT PLUS FUND RETAIL PLAN [G] is having the highest SD (8.56).
So it is the most risky fund in this category.
Covariance of Large cap fund
Table No:4
77
schemes CovarianceICICI Prudential focused blue chip Equity fund 1.0669UTI Oppertunities fund(G) 1.293Fedelity Equity fund 0.9903Franklin Indian blue chip fund (G) 0.888HDFC Top 200 fund (G) 1.268JP MORGAN INDIA EQUITY FUND 1.138RELLIANCE QUANT PLUS FUND RETAIL PLAN [G] 1.206ING Core Equity Fund 1.27HSBC INDIA OPPORTUNITIES FUND 0.998BNP PARIBAS EQUITY FUND 1.286
Graph No : 4
ICIC
I Pru
dential
focu
sed b
lue c
hip Eq
uity fu
nd
UTI Opper
tuniti
es fu
nd(G)
Fedeli
ty Eq
uity fu
nd
Fran
klin In
dian b
lue c
hip fu
nd (G)
HDFC To
p 200 fu
nd (G)
JP M
ORGAN INDIA
EQUITY
FUND
RELLIA
NCE QUANT P
LUS F
UND RET
AIL PLA
N [G]
ING C
ore Eq
uity Fu
nd
HSBC IN
DIA O
PPORTUNITI
ES FU
ND
BNP PARIB
AS EQUITY
FUND0
0.20.40.60.8
11.21.4
Covariance
Covariance
Interpretation
Co-variance helps in finding out the interactive risk. From the graph it shows that the co-variance of
all funds are positive. It reveals that the interactive risk of all funds are positive.
Beta of Large cap fund
Table No:5
78
Graph No : 5
ICIC
I Pru
dential
focu
sed b
lue c
hip Eq
uity fu
nd
UTI Opper
tuniti
es fu
nd(G)
Fedeli
ty Eq
uity fu
nd
Fran
klin In
dian b
lue c
hip fu
nd (G)
HDFC To
p 200 fu
nd (G)
JP M
ORGAN INDIA
EQUITY
FUND
RELLIA
NCE QUANT P
LUS F
UND RET
AIL PLA
N [G]
ING C
ore Eq
uity Fu
nd
HSBC IN
DIA O
PPORTUNITI
ES FU
ND
BNP PARIB
AS EQUITY
FUND0
0.010.020.030.040.05
Beta
Beta
Interpretation of data
Beta of a fund indicates the market risk ie., volatility of return in relation to market return.
RELLIANCE QUANT PLUS FUND RETAIL PLAN [G] is having the a lower beta value (.0165) shows opposite
movement with the market..Hence the market risk is low. HSBC INDIA OPPORTUNITIES FUND having
highest beta value (.0435). So market movements are more reflected in this fund’s return.
79
Schemes BetaICICI Prudential focused blue chip Equity fund 0.041
7UTI Oppertunities fund(G) 0.035
4Fedelity Equity fund 0.031
5Franklin Indian blue chip fund (G) 0.025
5HDFC Top 200 fund (G) 0.028
9JP MORGAN INDIA EQUITY FUND 0.037
1RELLIANCE QUANT PLUS FUND RETAIL PLAN [G]
0.0165
ING Core Equity Fund 0.0359
HSBC INDIA OPPORTUNITIES FUND 0.0435
BNP PARIBAS EQUITY FUND 0.0235
Table No :6
Alpha of Large Cap fund
Table no : 6
schemes alphaICICI Prudential focused blue chip Equity fund 0.016601UTI Oppertunities fund(G) 0.019566Fedelity Equity fund 0.031116Franklin Indian blue chip fund (G) 0.048329HDFC Top 200 fund (G) 0.036005JP MORGAN INDIA EQUITY FUND 0.031631RELLIANCE QUANT PLUS FUND RETAIL PLAN [G] 0.061296ING Core Equity Fund 0.036033HSBC INDIA OPPORTUNITIES FUND 0.031704BNP PARIBAS EQUITY FUND 0.055322
Graph No :6
ICIC
I Pru
dential
focu
sed b
lue c
hip Eq
uity fu
nd
UTI Opper
tuniti
es fu
nd(G)
Fedeli
ty Eq
uity fu
nd
Fran
klin In
dian b
lue c
hip fu
nd (G)
HDFC To
p 200 fu
nd (G)
JP M
ORGAN INDIA
EQUITY
FUND
RELLIA
NCE QUANT P
LUS F
UND RET
AIL PLA
N [G]
ING C
ore Eq
uity Fu
nd
HSBC IN
DIA O
PPORTUNITI
ES FU
ND
BNP PARIB
AS EQUITY
FUND0
0.010.020.030.040.050.060.07
alpha
alpha
Interpretation of data
80
Among the funds RELLIANCE QUANT PLUS FUND RETAIL PLAN [G] is having high positive alpha (.0612),
shows it earned more than the rate of market risk. ICICI Prudential focused blue chip Equity fund shows
the lowest Alpha (.0166) it reveals that the fund earned good return to the market risk involved in it .
Compounded Annual Growth Rate of Large Cap Fund
Table No :7
schemes CAGRICICI Prudential focused blue chip Equity fund 20.51
%UTI Oppertunities fund(G) 23.04
%Fedelity Equity fund 21.55
%Franklin Indian blue chip fund (G) 17.98
%HDFC Top 200 fund (G) 20.52
%JP MORGAN INDIA EQUITY FUND 17.59
%RELLIANCE QUANT PLUS FUND RETAIL PLAN [G] 17.90
%ING Core Equity Fund 16.35
%HSBC INDIA OPPORTUNITIES FUND 15.00
%BNP PARIBAS EQUITY FUND 14.47
%
Graph No : 7
81
ICIC
I Pru
dential
focu
sed b
lue c
hip Eq
uity fu
nd
UTI Opper
tuniti
es fu
nd(G)
Fedeli
ty Eq
uity fu
nd
Fran
klin In
dian b
lue c
hip fu
nd (G)
HDFC To
p 200 fu
nd (G)
JP M
ORGAN INDIA
EQUITY
FUND
RELLIA
NCE QUANT P
LUS F
UND RET
AIL PLA
N [G]
ING C
ore Eq
uity Fu
nd
HSBC IN
DIA O
PPORTUNITI
ES FU
ND
BNP PARIB
AS EQUITY
FUND0.00%
5.00%10.00%15.00%20.00%25.00%
CAGR
CAGR
Interpretation of data
From the table it is understood that UTI Opportunities fund is having the high growth rate of
23.04% and BNP Paribas having the lower growth rate of 14.47% during the period of the study.
Sharp ratio of Largecap funds
schemes Mean Rf SD SpICICI Prudential focused blue chip Equity fund 1.735 0.26 5.056 0.2917326UTI Oppertunities fund(G) 1.96 0.26 6.036 0.2816435Fedelity Equity fund 1.836 0.26 5.61 0.2809269Franklin Indian blue chip fund (G) 1.593 0.26 5.897 0.2260471HDFC Top 200 fund (G) 1.832 0.26 6.641 0.2367113JP MORGAN INDIA EQUITY FUND 1.545 0.26 5.514 0.2330432RELLIANCE QUANT PLUS FUND RETAIL PLAN [G] 1.676 0.26 8.56 0.1654206ING Core Equity Fund 1.474 0.26 5.95 0.2040336HSBC INDIA OPPORTUNITIES FUND 1.316 0.26 4.738 0.2228789BNP PARIBAS EQUITY FUND 1.431 0.26 7.396 0.1583288
Graph No:
82
ICICI Pru
dential
focu
sed blue c
hip Equity
fund
UTI Opper
tunities
fund(G
)
Fedeli
ty Eq
uity fu
nd
Fran
klin In
dian blue c
hip fund (G
)
HDFC To
p 200 fund (G
)
JP M
ORGAN INDIA
EQUITY
FUND
RELLIA
NCE QUANT P
LUS F
UND RETAIL
PLAN [G
]
ING Core
Equity
Fund
HSBC IN
DIA O
PPORTUNITI
ES FU
ND
BNP PARIBAS EQUITY
FUND
00.05
0.10.15
0.20.25
0.30.35
Sharp Ratio
Sharp Ratio
Interpretation of data
Sharpe Ratio indicates the excess return per unit of total risk (Standard Deviation) assumed by the
investor over some risk free rate of return. ICICI (0.291) is having the highest Sharpe ratio. Hence it is the
best fund. BNP Paribas fund is considered to be worst performers with this ratio.
Treynor Ratio of Large Cap funds.
schemes Mean Rf Beta TpICICI Prudential focused blue chip Equity fund 1.735 0.26 0.0417 35.3717UTI Oppertunities fund(G) 1.96 0.26 0.0354 48.0226Fedelity Equity fund 1.836 0.26 0.0315 50.03175Franklin Indian blue chip fund (G) 1.593 0.26 0.0255 52.27451HDFC Top 200 fund (G) 1.832 0.26 0.0289 54.39446JP MORGAN INDIA EQUITY FUND 1.545 0.26 0.0371 34.63612RELLIANCE QUANT PLUS FUND RETAIL PLAN [G] 1.676 0.26 0.0165 85.81818ING Core Equity Fund 1.474 0.26 0.0359 33.81616HSBC INDIA OPPORTUNITIES FUND 1.316 0.26 0.0435 24.27586BNP PARIBAS EQUITY FUND 1.431 0.26 0.0235 49.82979
83
ICICI Pruden
tial focused
blue chip Eq
uity fu
nd
UTI Oppert
unities fund(G)
Fedelit
y Equity
fund
Franklin
Indian
blue chip fu
nd (G)
HDFC To
p 200 fund (G
)
JP MORGAN IN
DIA EQUITY
FUND
RELLIANCE Q
UANT PLU
S FUND RETA
IL PLA
N [G]
ING Core Eq
uity Fu
nd
HSBC IN
DIA OPPORTUNITIE
S FUND
BNP PARIBAS EQUITY
FUND
020406080
100
Treynor Ratio
Tp
Interpretation
Treynor Ratio indicates the excess return per unit of market risk (beta) assumed by the investor over some risk
free rate of return. Here risk free rate of return is 9.5%.
Reliance Quant fund has the highest Treynor ratio (85.81) & HSBC India Equity fund is having lowest ratio
of 24.27.
RANKING OF EQUITY DIVERSIFIED FUND
schemes
CAGR Mean Variance SD Covariance
Beta alpha Sharp ratio
Treynor ratio
Rank
canara robeco equity diversified (G)
22.75% 1.909 29.309 5.41 1.217 0.0415 0.0097 0.304 39.737 4
Tata contra fund (G)
23.44% 1.995 36.969 6.08 0.475 0.0128 0.0634 0.285 135.57 3
84
kotak contra fund(G)
17.64% 1.622 46.511 6.81 1.339 0.0288 0.0422 0.199 47.298 7
AIG India equity fund(G)
21.35% 1.832 34.827 5.9 1.231 0.0354 0.024 0.266 44.406 5
UTI MNC fund (G)
28.55% 2.271 19.33 4.39 0.706 0.0365 0.006 0.457 55.095 1
Templeton india equity (G)
1.39% 0.3782 47.57 6.89 -0.631 -0.013 0.0939 0.017 -8.954 10
tata capital builder fund (G)
20.48% 1.848 52.697 7.22 1.498 0.0273 0.0384 0.219 58.197 6
birla sunlife next generation fund(G)
24.09% 2.024 32.682 5.71 1.242 0.038 0.012 0.308 46.428 2
sbi magnum contra fund(G)
12.51% 1.223 44.73 6.66 1.376 0.0308 0.0512 0.144 31.279 8
escorts oppertunities fund(G)
4.68% 0.418 5.2 2.28 0.244 0.0468 0.0693 0.069 3.377 9
RANKING OF LARGE CAP FUNDS
schemes CAGR MEAN
VARI-ANCE
SD COVAR-IANCE
BETA ALPHA
SHARP RATIO
TEYNOR RATIO
RANK
ICICI Prudential focused blue chip Equity fund
20.51% 1.735 25.573 5.056 1.0669 0.0417 0.0166 0.291 35.371 4
UTI Oppertunities fund(G) 23.04% 1.96 36.434 6.036 1.293 0.0354 0.0195 0.281 48.022 1
85
Fedelity Equity fund 21.55% 1.836 31.474 5.61 0.9903 0.0315 0.0311 0.280
50.031 2
Franklin Indian blue chip fund (G) 17.98% 1.593 34.779 5.897 0.888 0.025 0.0483 0.226 52.274 5
HDFC Top 200 fund (G) 20.52% 1.832 44.097 6.641 1.268 0.028 0.0360 0.236 54.394
3
JP MORGAN INDIA EQUITY FUND
17.59% 1.545 30.399 5.514 1.138 0.0371 0.0316 0.23334.636 7
RELLIANCE QUANT PLUS FUND RETAIL PLAN [G]
17.90% 1.676 73.315 8.56 1.206 0.0165 0.0612 0.16585.818
6
ING Core Equity Fund
16.35% 1.474 35.342 5.95 1.27 0.035 0.0360 0.204 33.816 8
HSBC INDIA OPPORT-UNITIES FUND
15.00% 1.316 22.44 4.738 0.998 0.043 0.0317 0.222 24.275 9
BNP PARIBAS EQUITY FUND
14.47% 1.431 54.7 7.396 1.286 0.023 0.0553 0.15849.829 10
FINDINGS
From the analysis of the data regarding the selected equity funds over a period of one year from 1-
May-2009 to 30-April-2011, the following things were found.
Risk Analysis
1.Total Risk (Standard Deviation):
Equity Diversified funds –
86
Escorts oppertunities fund(G) (2.281) , is having the least standard deviaton . Birla sun life fund(5.47)
shows highest volatility of returns.HDFC Equity Fund, Tata Contra fund, Templeton fund also have
SD higher than their mean returns.
Large cap funds
HSBC INDIA OPPORTUNITIES FUND is having the least SD(4.738) in this category, so the return
tends to stable. RELLIANCE QUANT PLUS FUND RETAIL PLAN [G] is having the highest SD (8.56). So it is
the most risky fund in this category. No mutual fund investment is risk free. The degree of risk varies
from fund to fund irrespective of the category of fund.
2.Market Risk (Beta):
Equity Diversified funds-
Tata contra fund (G) is having the a lower beta value (0.0128).Hence the market risk is low.
Escorts opportunities fund(G) having highest beta value (0.0468). So market movements are more
reflected in this fund’s return.
Large cap fund
HSBC INDIA OPPORTUNITIES FUND shows high beta So the fund is more responsive to market
fluctuation and therefore market risk is high to this fund compared to other funds in the category
RELLIANCE QUANT PLUS FUND RETAIL PLAN [G is the most defensive fund in this category as it is less
sensitive to market (0.0165).
3. Alpha:
Equity Diversified funds
A high value of alpha implies that the fund has performed better than the expectation given by its
beta. UTI MNC fund (G) having the least alpha and Templeton having the highest alpha under this category.
Large cap fund
87
RELLIANCE QUANT PLUS FUND RETAIL PLAN [G] (0.06129) having the highest alpha
and ICICI Prudential focused blue chip Equity fund (0.016601) having the lowest alpha indicates
these fund earned less than expectations.
Risk Adjusted Return of the Funds
4.Sharpe Ratio
Equity Diversified funds-
UTI MNC fund (G) (0.457) is having the highest sharpe ratio .hence it is the best fund. Templeton india
equity (G) having the lowest ratio (0.0171)and it is considered to be worst performers with this ratio.
Large cap fund
ICICI Prudential focused blue chip Equity fund (0.29) is the best performer ,and RELLIANCE
QUANT PLUS FUND RETAIL PLAN [G] (0.165) fund is the worst performer under this category
5.Treynor Ratio:
Equity Diversified funds-
Tata contra fund (G) has the highest Treynor ratio and Templeton india equity (G) fund
considered to be the worst performers in this category.
Large cap fund
RELLIANCE QUANT PLUS FUND RETAIL PLAN [G] is the best performer and HSBC INDIA
OPPORTUNITIES FUND is the worst performer under this category.
6. Growth Rate Analysis (CAGR):
Equity Diversified funds-
UTI MNC fund is having the high growth rate of 28.55% . It is clear that all the fund
Templeton Equity fund having the lowest market growth rate of 1.39% during that period.
88
Large cap funds.
UTI Oppertunities fund(G) ( 23.04 ) is having the high growth rate , BNP PARIBAS
EQUITY FUND having the lowest growth rate of 14.47 %.
SUGGESTIONS
1. Investors who would like to invest in equity diversified mutual fund ,the best choice is UTI
MNC fund(G) which is ranked first in this category. Birla sunlife next generation fund(G)comes
second in ranking.
Investors who would like to invest in Largecap fund UTI Oppertunities fund(G) and Fidelity
Equity fund , as both funds ranked 1st & 2nd respectively.
89
2. If the investor is risk averse it is better to invest in diversified funds as they show less
volatility compared Large cap funds.
And if the investor is looking for high return sector specific fund is the avenue.
4 From the analysis it is found that no fund is risk free . Each fund has its own risk return
characteristics. So the choice of any scheme would depend on the investment objective, risk
affordability, financial capacity etc. of the investor. The reputation and management skill of the
Asset Management Company are also to be taken in to account.
5 Growth rate is more important than the size of NAV. A lower NAV scheme growing at faster
rate bring more benefit to an investor than a scheme with higher NAV growing at a lower rate.
CONCLUSION
The study entitled “Performance evaluation of selected mutual funds within the framework
of risk and return- – A study held at Capstock securities Ltd ,Coimbatore ” was done with an
objective of analysing the performance of the selected equity growth mutual funds for a period from
90
1st May 2009 to 30th March 2012. The objective of the study was to evaluate and compare the
performance of the selected schemes under 2 Category of Equity funds; Equity Diversified, Large
cap funds and suggest the best funds in each category by analyzing the return, risk and growth
aspects.
While evaluating the performance, Under Equity diversified funds UTI
Opportunities fund gives the highest mean returns (2.27) and having the higher growth rate (28.55%)
under this category. The riskiest fund under this category is Escorts opportunities fund which gives
lowest mean returns (.418) and having only 4.68% growth rate over the period of three years
performance.
Canara Robeco equity diversified (G)month NAV return
(X) dx dx^2Return (Y) dy dx*dy
May-09 30.27 Jun-09 37.44
123.6901
2 21.78099 474.41141.127349
1.034662322.5359663
5Jul-09 37.66
30.59293
3 -1.3162 1.732388-0.14652
-0.23920460.31484160
1Aug-09 39.82 5.72710
6 3.817971 14.57690.360529
0.267841721.02261196
7
91
Sep-09 43 7.98593 6.07680 36.9275 0.04141 -0.051275 -0.31159Oct-09 44.62 3.76744
2 1.858307 3.4533040.4381
0.3454130.64188334
8Nov-09 45.02 0.89645
9 -1.01268 1.0255130.3739
0.281213 -0.28477766Dec-09 46.72
3.7761 1.866965 3.4855560.3089
0.2162130.40366199
8Jan-10 48.92 4.70890
4 2.799769 7.8387070.01627
-0.076417 -0.21394996Feb-10 45.72
-6.54129 -8.45043 71.40971-0.1654
-0.2580872.18094532
9Mar-10 48.11 5.22747
2 3.318337 11.011360.0476
-0.045087 -0.14961384Apr-10 50.8 5.59135
3 3.682218 13.558730.3089
0.2162130.79614343
3May-10 50.52
-0.55118 -2.46032 6.0531550.01627
-0.0764170.18800997
6Jun-10 51.14 1.22723
7 -0.6819 0.464985-0.01644
-0.1091270.07441351
2Jul-10 53.34 4.30191
6 2.392781 5.7254020.20462
0.111933 0.26783119Aug-10 54.39 1.96850
4 0.059369 0.0035250.04885
-0.043837 -0.00260256Sep-10 58.1 6.82110
7 4.911972 24.127470.0316
-0.061087 -0.30005762Oct-10 57.77 -0.56799 -2.47712 6.13613 0.5275 0.434813 -1.07708451Nov-10 57.91
0.24234 -1.66679 2.778205-0.004
-0.0966870.16115737
8Dec-10 56.09
-3.14281 -5.05194 25.52213-0.1163
-0.2089871.05579037
1Jan-11 54.71 -2.46033 -4.36947 19.09224 0.21031 0.117623 -0.51394977Feb-11 52.33
-4.35021 -6.25935 39.1794-0.5325
-0.6251873.91326124
7Mar-11 52.58 0.47773
7 -1.4314 2.048899-0.075
-0.1676870.24002676
3Apr-11 55.72 5.97185
2 4.062717 16.505670.41605
0.3233631.31373249
2May-11 54.43
-2.31515 -4.22428 17.84456-0.0756
-0.1682870.71089177
3Jun-11 54.48 0.09186
1 -1.81727 3.302484-0.0146
-0.1072870.19496986
4Jul-11 56.03 2.84508
1 0.935946 0.8759940.07534
-0.017347 -0.01623585Aug-11 52.7
-5.94324 -7.85238 61.65987-0.1369
-0.2295871.80280429
6Sep-11 52.65
-0.09488 -2.00401 4.016063-0.4249
-0.5175871.03725038
3Oct-11 52.23
-0.79772 -2.70686 7.327068-0.0429
-0.1355870.36701445
7Nov-11 51.82 -0.78499 -2.69412 7.258307 0.46348 0.370793 -0.99896249
92
Dec-11 49.32-4.82439 -6.73353 45.34039
-0.4782-0.570887
3.844083101
Jan-12 50.63 2.656123 0.746988 0.557991
-0.198-0.290687 -0.21713978
Feb-12 56.04 10.68536 8.776229 77.0222
0.540180.447493
3.927301227
Mar-12 55.05 -1.7666 -3.67573 13.51099 0.18203 0.089343 -0.32840077Apr-12 55.99 1.70753
9 -0.2016 0.040641-0.0679
-0.1605870.03237376
1Mean=
1.909135
∑dx^21025.825 Average= 0.092687
∑ dx*dy=42.61260068
SD=5.4137
Variance= 29.30928
Covariance=1.217502876
Beta= 0.04154
Tata contra fund (G)month NAV dx dx^2 Return (Y) dy dx*dyMay-09 9.49 Jun-09 11.855 24.9209
722.9255
1 525.5791.127349
1.034662 23.72016Jul-09 12.66 6.79038
44.79492
4 22.99129-0.14652
-0.2392 -1.14697Aug-09 13.97 10.3475
58.35209
1 69.757430.360529
0.267842 2.237039Sep-09 15.023 7.53758
15.54212
1 30.71510.041412
-0.05128 -0.28417Oct-09 15.127 0.69227
2 -1.30319 1.6982990.4381
0.345413 -0.45014Nov-09 16.184 6.98750
64.99204
6 24.920520.3739
0.281213 1.403828Dec-09 15.27 -5.64755 -7.64301 58.41565 0.3089 0.216213 -1.65252Jan-10 15.78 3.33988
21.34442
2 1.8074710.01627
-0.07642 -0.10274Feb-10 16.216 2.76299
10.76753
1 0.589104-0.1654
-0.25809 -0.19809Mar-10 15.832 -2.36803 -4.36349 19.04006 0.0476 -0.04509 0.196737Apr-10 15.82 -0.0758 -2.07126 4.290101 0.3089 0.216213 -0.44783
May-10 16.79 6.131479
4.136019 17.10665
0.01627-0.07642 -0.31606
Jun-10 17.308 3.08517 1.08971 1.187467 -0.01644 -0.10913 -0.11892Jul-10 18.428 6.47099
64.47553
6 20.030420.20462
0.111933 0.50096Aug-10 19.03 3.26676
81.27130
8 1.6162240.04885
-0.04384 -0.05573Sep-10 19.56 2.78507
60.78961
6 0.6234940.0316
-0.06109 -0.04824
93
Oct-10 18.288 -6.50307 -8.49853 72.22497 0.5275 0.434813 -3.69527Nov-10 17.72 -3.10586 -5.10132 26.02348 -0.004 -0.09669 0.493231Dec-10 17.18 -3.0474 -5.04286 25.43048 -0.1163 -0.20899 1.053893Jan-11 16.81 -2.15367 -4.14913 17.21526 0.21031 0.117623 -0.48803Feb-11 17.9 6.48423
64.48877
6 20.14911-0.5325
-0.62519 -2.80632Mar-11 17.73 -0.94972 -2.94518 8.674089 -0.075 -0.16769 0.493869Apr-11 17.87 0.78962
2 -1.20584 1.4540450.41605
0.323363 -0.38992May-11 18.27 2.23838
80.24292
8 0.059014-0.0756
-0.16829 -0.04088Jun-11 16.63 -8.97646 -10.9719 120.3831 -0.0146 -0.10729 1.177145Jul-11 16.79 0.96211
7 -1.03334 1.0677980.07534
-0.01735 0.017925Aug-11 16.86 0.41691
5 -1.57855 2.491805-0.1369
-0.22959 0.362413Sep-11 16.63 -1.36418 -3.35964 11.28715 -0.4249 -0.51759 1.738904Oct-11 15.789 -5.05713 -7.05259 49.73896 -0.0429 -0.13559 0.956239Nov-11 16.82 6.52986
34.53440
3 20.560810.46348
0.370793 1.681325Dec-11 18.13 7.78834
75.79288
7 33.55754-0.4782
-0.57089 -3.30708Jan-12 18.18 0.27578
6 -1.71967 2.957279-0.198
-0.29069 0.499887Feb-12 17.005 -6.46315 -8.45861 71.54802 0.54018 0.447493 -3.78517Mar-12 17.08 0.44104
7 -1.55441 2.4162010.18203
0.089343 -0.13888Apr-12 17.85 4.50819
72.51273
7 6.313846-0.0679
-0.16059 -0.40351
Mean 1.99546
1
Variance=36.96918
SD=6.0802
Beta=0.01287 16.65708
Cov=0.475917
kotak contra fund(G)month NAV return X dx dx^2 Return (Y) dy dx*dyMay-09 12.668 Jun-09 15.84 25.03947 23.41737 548.3732 1.127349 1.034662 24.22907Jul-09 14.69 -7.2601 -8.8822 78.89349 -0.14652 -0.2392 2.124663
Aug-09 16.676 13.5194 11.8973 141.5458 0.360529 0.267842 3.186594Sep-09 17.827 6.902135 5.280035 27.87877 0.041412 -0.05128 -0.27074Oct-09 18.94 6.243339 4.621239 21.35585 0.4381 0.345413 1.596236Nov-09 19.08 0.739176 -0.88292 0.779554 0.3739 0.281213 -0.24829Dec-09 19.41 1.72956 0.10746 0.011548 0.3089 0.216213 0.023234Jan-10 20.367 4.930448 3.308348 10.94517 0.01627 -0.07642 -0.25281
94
Feb-10 18.852 -7.4385 -9.0606 82.09454 -0.1654 -0.25809 2.338424Mar-10 19.827 5.171865 3.549765 12.60083 0.0476 -0.04509 -0.16005Apr-10 20.605 3.923942 2.301842 5.298477 0.3089 0.216213 0.497688
May-10 19.968 -3.09148 -4.71358 22.21786 0.01627 -0.07642 0.360198Jun-10 20.682 3.575721 1.953621 3.816636 -0.01644 -0.10913 -0.21319Jul-10 21.537 4.13403 2.51193 6.30979 0.20462 0.111933 0.281168
Aug-10 22.123 2.720899 1.098799 1.207359 0.04885 -0.04384 -0.04817Sep-10 23.94 8.213172 6.591072 43.44223 0.0316 -0.06109 -0.40263Oct-10 23.729 -0.88137 -2.50347 6.267363 0.5275 0.434813 -1.08854Nov-10 24.82 4.59775 2.97565 8.85449 -0.004 -0.09669 -0.28771Dec-10 22.42 -9.66962 -11.2917 127.503 -0.1163 -0.20899 2.359823Jan-11 21.457 -4.29527 -5.91737 35.01529 0.21031 0.117623 -0.69602Feb-11 20.054 -6.53866 -8.16076 66.59798 -0.5325 -0.62519 5.102Mar-11 19.79 -1.31645 -2.93855 8.63505 -0.075 -0.16769 0.492756Apr-11 21.067 6.452754 4.830654 23.33522 0.41605 0.323363 1.562055
May-11 19.928 -5.40656 -7.02866 49.40206 -0.0756 -0.16829 1.182832Jun-11 20.28 1.766359 0.144259 0.020811 -0.0146 -0.10729 -0.01548Jul-11 20.438 0.779093 -0.84301 0.710661 0.07534 -0.01735 0.014624
Aug-11 18.596 -9.01262 -10.6347 113.0973 -0.1369 -0.22959 2.441594Sep-11 18.934 1.817595 0.195495 0.038218 -0.4249 -0.51759 -0.10119Oct-11 18.916 -0.09507 -1.71717 2.948663 -0.0429 -0.13559 0.232826Nov-11 18.402 -2.71728 -4.33938 18.83019 0.46348 0.370793 -1.60901Dec-11 17.666 -3.99957 -5.62167 31.60312 -0.4782 -0.57089 3.209336Jan-12 19.295 9.221103 7.599003 57.74484 -0.198 -0.29069 -2.20893Feb-12 21.035 9.01788 7.39578 54.69757 0.54018 0.447493 3.30956Mar-12 20.61 -2.02044 -3.64254 13.26811 0.18203 0.089343 -0.32544Apr-12 20.615 0.02426 -1.59784 2.553092 -0.0679 -0.16059 0.256592
∑dx^2=1627.894
∑ dx*dy=46.87309
Variance= 46.51126 SD=6.8198
Beta=0.028794
covariance 1.339231
95
96
AIG India equity fund(G)
month NAV Return (X) dx dx^2
Return (Y) dy dx*dy
May-09 6.953 Jun-09 8.753 25.88811 24.0560
2578.691
91.12734
91.03466
224.8898
5Jul-09 9.136 4.375643 2.54355
3 6.46966-0.14652
-0.2392 -0.60843Aug-09 9.647 5.593257 3.76116
714.1463
80.36052
90.26784
21.00739
8Sep-09 10.327 7.048823 5.21673
327.2143
10.04141
2 -0.05128 -0.26749Oct-09 11.04 6.904232 5.07214
225.7266
20.4381 0.34541
31.75198
4Nov-09 11.154 1.032609
-0.79948 0.639170.3739 0.28121
3 -0.22482Dec-09 11.181 0.242066
-1.590022.52817
80.3089 0.21621
3 -0.34378Jan-10 11.833 5.831321 3.99923
115.9938
50.01627
-0.07642 -0.30561Feb-10 11.27 -4.75788
-6.5899743.4277
1-0.1654
-0.258091.70078
6Mar-10 11.869 5.314996 3.48290
612.1306
30.0476
-0.04509 -0.15703Apr-10 12.288 3.530205 1.69811
52.88359
40.3089 0.21621
30.36715
4May-10 11.765 -4.25618
-6.0882737.0670
90.01627
-0.076420.46524
8Jun-10 12.126 3.068423 1.23633
3 1.52852-0.01644
-0.10913 -0.13492Jul-10 12.31 1.517401
-0.314690.09902
90.20462 0.11193
3 -0.03522Aug-10 12.226 -0.68237
-2.514466.32251
90.04885
-0.043840.11022
6Sep-10 12.73 4.122362 2.29027
25.24534
70.0316
-0.06109 -0.13991Oct-10 12.95 1.728201
-0.103890.01079
30.5275 0.43481
3 -0.04517Nov-10 13.272 2.486486 0.65439
60.42823
5-0.004
-0.09669 -0.06327Dec-10 12.718 -4.1742
-6.0062936.0755
4-0.1163
-0.208991.25523
7Jan-11 12.21 -3.99434
-5.8264333.9472
70.21031 0.11762
3 -0.68532Feb-11 11.58 -5.15971
-6.9918 48.8852-0.5325
-0.625194.37117
9Mar-11 11.414 -1.43351
-3.265610.6641
2-0.075
-0.167690.54759
8Apr-11 12.191 6.807429 4.97533
9 24.7540.41605 0.32336
31.60884
1May-11 12.151 -0.32811
-2.16024.66646
8-0.0756
-0.168290.36353
4Jun-11 12.314 1.341453
-0.490640.24072
4-0.0146
-0.107290.05263
9Jul-11 12.512 1.607926
-0.22416 0.050250.07534
-0.017350.00388
9Aug-11 12.074 -3.50064
-5.33273 28.438-0.1369
-0.229591.22432
5Sep-11 12.472 3.296339 1.46424
92.14402
6-0.4249
-0.51759 -0.75788Oct-11 12.08 -3.14304
-4.9751324.7519
2-0.0429
-0.135590.67456
3Nov-11 11.61 -3.89073 32.7506 0.46348 0.37079
escorts opportunities fund(G)
month NAV dx2 dx Return (Y)Dy dx*dy
May-09 25.114 Jun-09 25.339 0.895915 0.228335 0.47784463 1.127349 1.034662 0.494408Jul-09 25.174 -0.65117 1.143274 -1.0692401 -0.14652 -0.2392 0.255767
Aug-09 25.217 0.170811 0.061137 -0.2472588 0.360529 0.267842 -0.06623Sep-09 25.34 0.487766 0.004858 0.06969619 0.041412 -0.05128 -0.00357Oct-09 25.763 1.669298 1.56557 1.25122755 0.4381 0.345413 0.43219Nov-09 25.85 0.337694 0.00646 -0.0803764 0.3739 0.281213 -0.0226Dec-09 26.047 0.762089 0.118349 0.34401897 0.3089 0.216213 0.074381Jan-10 26.117 0.268745 0.022298 -0.149325 0.01627 -0.07642 0.011411Feb-10 25.994 -0.47096 0.79037 -0.8890276 -0.1654 -0.25809 0.229446Mar-10 26.036 0.161576 0.065789 -0.2564943 0.0476 -0.04509 0.011565Apr-10 27.03 3.817791 11.5581 3.39972075 0.3089 0.216213 0.735064
May-10 27.05 0.073992 0.11839 -0.3440781 0.01627 -0.07642 0.026293Jun-10 27.202 0.561922 0.020694 0.14385237 -0.01644 -0.10913 -0.0157Jul-10 27.46 0.94846 0.281313 0.53038967 0.20462 0.111933 0.059368
Aug-10 27.86 1.456664 1.078678 1.03859424 0.04885 -0.04384 -0.04553Sep-10 28.86 3.589375 10.05718 3.17130545 0.0316 -0.06109 -0.19373Oct-10 28.27 -2.04435 6.063522 -2.462422 0.5275 0.434813 -1.07069Nov-10 29.26 3.501946 9.510288 3.08387553 -0.004 -0.09669 -0.29817Dec-10 28.084 -4.01914 19.68882 -4.4372088 -0.1163 -0.20899 0.927319Jan-11 28.072 -0.04273 0.212336 -0.460799 0.21031 0.117623 -0.0542Feb-11 27.021 -3.74394 17.32236 -4.1620141 -0.5325 -0.62519 2.602037Mar-11 27.2 0.662448 0.05972 0.24437773 -0.075 -0.16769 -0.04098Apr-11 28.08 3.235294 7.936752 2.81722412 0.41605 0.323363 0.910986
May-11 27.93 -0.53419 0.906795 -0.952258 -0.0756 -0.16829 0.160253Jun-11 28.35 1.503759 1.178721 1.0856894 -0.0146 -0.10729 -0.11648Jul-11 28.67 1.128748 0.505063 0.7106778 0.07534 -0.01735 -0.01233
Aug-11 27.533 -3.96582 19.21847 -4.3838879 -0.1369 -0.22959 1.006484Sep-11 27.57 0.134384 0.080478 -0.2836858 -0.4249 -0.51759 0.146832Oct-11 27.135 -1.5778 3.983505 -1.995872 -0.0429 -0.13559 0.270614Nov-11 26.565 -2.10061 6.343739 -2.5186781 0.46348 0.370793 -0.93391Dec-11 25.675 -3.35027 14.20041 -3.7683429 -0.4782 -0.57089 2.151298Jan-12 27.005 5.180136 22.67728 4.76206632 -0.198 -0.29069 -1.38427Feb-12 28.47 5.424921 25.06856 5.00685131 0.54018 0.447493 2.240531Mar-12 28.7 0.807868 0.151942 0.38979793 0.18203 0.089343 0.034826Apr-12 28.801 0.351916 0.004376 -0.0661536 -0.0679 -0.16059 0.010623
Mean0.418072
182.2339 Variance=5.2 SD=5.206684 Sum = 8.533311
Covarience =0.243809
97
Birlasunlife next generation fund
month NAV dx dx^2 Return (Y) dy dx*dyMay-09 13.31 Jun-09 15.88 19.30879 17.28459 298.7571 1.127349 1.034662 17.88371Jul-09 15.57 -1.95214 -3.97634 15.81129 -0.14652 -0.2392 0.951159
Aug-09 17.39 11.68915 9.664946 93.41118 0.360529 0.267842 2.588676Sep-09 18.29 5.175388 3.151188 9.929987 0.041412 -0.05128 -0.16158Oct-09 19.18 4.866047 2.841847 8.076094 0.4381 0.345413 0.981611Nov-09 19.44 1.355579 -0.66862 0.447054 0.3739 0.281213 -0.18802Dec-09 19.23 -1.08025 -3.10445 9.637591 0.3089 0.216213 -0.67122Jan-10 20.39 6.032241 4.008041 16.06439 0.01627 -0.07642 -0.30628Feb-10 19.24 -5.64002 -7.66422 58.74026 -0.1654 -0.25809 1.978035Mar-10 19.96 3.742204 1.718004 2.951537 0.0476 -0.04509 -0.07746Apr-10 21.32 6.813627 4.789427 22.93861 0.3089 0.216213 1.035536
May-10 21.4 0.375235 -1.64897 2.719087 0.01627 -0.07642 0.126009Jun-10 21.53 0.607477 -1.41672 2.007105 -0.01644 -0.10913 0.154603Jul-10 22.89 6.316767 4.292567 18.42613 0.20462 0.111933 0.48048
Aug-10 24.43 6.727829 4.703629 22.12412 0.04885 -0.04384 -0.20619Sep-10 26.259 7.486697 5.462497 29.83887 0.0316 -0.06109 -0.33369Oct-10 26.11 -0.56742 -2.59162 6.716518 0.5275 0.434813 -1.12687Nov-10 26.88 2.949062 0.924862 0.855369 -0.004 -0.09669 -0.08942Dec-10 24.88 -7.44048 -9.46468 89.5801 -0.1163 -0.20899 1.977994Jan-11 23.59 -5.18489 -7.20909 51.97094 0.21031 0.117623 -0.84795Feb-11 22.2 -5.89233 -7.91653 62.6714 -0.5325 -0.62519 4.94931Mar-11 22.33 0.585586 -1.43861 2.069611 -0.075 -0.16769 0.241237Apr-11 24.58 10.07613 8.051931 64.83359 0.41605 0.323363 2.603696
May-11 24.01 -2.31896 -4.34316 18.86303 -0.0756 -0.16829 0.730897Jun-11 25.16 4.789671 2.765471 7.64783 -0.0146 -0.10729 -0.2967Jul-11 26.36 4.769475 2.745275 7.536537 0.07534 -0.01735 -0.04762
Aug-11 24.79 -5.95599 -7.98019 63.6835 -0.1369 -0.22959 1.832149Sep-11 24.24 -2.21864 -4.24284 18.00166 -0.4249 -0.51759 2.196037Oct-11 23.92 -1.32013 -3.34433 11.18456 -0.0429 -0.13559 0.453448Nov-11 23.94 0.083612 -1.94059 3.765882 0.46348 0.370793 -0.71956Dec-11 22.42 -6.34921 -8.37341 70.11393 -0.4782 -0.57089 4.780269Jan-12 22.84 1.873327 -0.15087 0.022763 -0.198 -0.29069 0.043857Feb-12 24.82 8.669002 6.644802 44.15339 0.54018 0.447493 2.973502Mar-12 24.66 -0.64464 -2.66884 7.122715 0.18203 0.089343 -0.23844Apr-12 25.43 3.122466 1.098266 1.206187 -0.0679 -0.16059 -0.17637
1143.882.024293 SD=5.71 Cov=1.242138 43.47484
Variance32.68228 Beta=0.038006
98
sbi magnum contra fund(G)
month NAV dx dx^2 Return (Y) dy dx*dyMay-09 36.66 Jun-09 46.31 26.32297 25.09862 629.9406 1.127349 1.034662 25.96859Jul-09 44 -4.98812 -6.21247 38.59483 -0.14652 -0.2392 1.486052
Aug-09 46.23 5.068182 3.843832 14.77504 0.360529 0.267842 1.029539Sep-09 51.142 10.62514 9.400785 88.37476 0.041412 -0.05128 -0.48203Oct-09 53.891 5.37523 4.15088 17.2298 0.4381 0.345413 1.433768Nov-09 53 -1.65334 -2.87769 8.281084 0.3739 0.281213 -0.80924Dec-09 53.58 1.09434 -0.13001 0.016903 0.3089 0.216213 -0.02811Jan-10 57.12 6.606943 5.382593 28.97231 0.01627 -0.07642 -0.41132Feb-10 53.25 -6.77521 -7.99956 63.99296 -0.1654 -0.25809 2.064582Mar-10 55.12 3.511737 2.287387 5.23214 0.0476 -0.04509 -0.10313Apr-10 56.16 1.886792 0.662442 0.43883 0.3089 0.216213 0.143229
May-10 54.04 -3.77493 -4.99928 24.99279 0.01627 -0.07642 0.38203Jun-10 55.4 2.516654 1.292304 1.67005 -0.01644 -0.10913 -0.14103Jul-10 57.42 3.646209 2.421859 5.865403 0.20462 0.111933 0.271086
Aug-10 58.092 1.170324 -0.05403 0.002919 0.04885 -0.04384 0.002368Sep-10 62.27 7.19204 5.96769 35.61333 0.0316 -0.06109 -0.36455Oct-10 63.17 1.445319 0.220969 0.048827 0.5275 0.434813 0.09608Nov-10 65.58 3.815102 2.590752 6.711996 -0.004 -0.09669 -0.25049Dec-10 59.58 -9.14913 -10.3735 107.6091 -0.1163 -0.20899 2.167923Jan-11 56.16 -5.74018 -6.96453 48.5047 0.21031 0.117623 -0.81919Feb-11 53.34 -5.02137 -6.24572 39.00899 -0.5325 -0.62519 3.904741Mar-11 52.48 -1.6123 -2.83665 8.046575 -0.075 -0.16769 0.475669Apr-11 56.76 8.155488 6.931138 48.04067 0.41605 0.323363 2.241274
May-11 54.34 -4.26357 -5.48792 30.11722 -0.0756 -0.16829 0.923545Jun-11 54 -0.62569 -1.85004 3.422648 -0.0146 -0.10729 0.198485Jul-11 55.01 1.87037 0.64602 0.417342 0.07534 -0.01735 -0.01121
Aug-11 50.6 -8.01672 -9.24107 85.39745 -0.1369 -0.22959 2.121631Sep-11 49.82 -1.5415 -2.76585 7.649937 -0.4249 -0.51759 1.431569Oct-11 49.88 0.120434 -1.10392 1.218632 -0.0429 -0.13559 0.149677Nov-11 47.42 -4.93184 -6.15619 37.89863 0.46348 0.370793 -2.28267Dec-11 47.38 -0.08435 -1.3087 1.712702 -0.4782 -0.57089 0.747121Jan-12 46.35 -2.17391 -3.39826 11.54819 -0.198 -0.29069 0.987831Feb-12 52.74 13.78641 12.56206 157.8053 0.54018 0.447493 5.621433Mar-12 52.23 -0.96701 -2.19136 4.80205 0.18203 0.089343 -0.19578Apr-12 52.21 -0.03829 -1.26264 1.594265 -0.0679 -0.16059 0.202764
1.2243491565.549
V=44.72997 48.15224
SD=6.688Βeta=
0.030757
Covariance
1.375778
99
tata capital builder fund (G)month NAV
dx dx^2Return (Y) dy dx*dy
May-09 7.961 Jun-09 10.567 32.73458 30.88583 953.9346 1.127349 1.034662 31.95641Jul-09 11.18 5.801079 3.952329 15.6209 -0.14652 -0.2392 -0.94542
Aug-09 11.468 2.576029 0.727279 0.528934 0.360529 0.267842 0.194796Sep-09 12.736 11.05685 9.208104 84.78918 0.041412 -0.05128 -0.47215Oct-09 13.462 5.700377 3.851627 14.83503 0.4381 0.345413 1.330402Nov-09 13.689 1.686228 -0.16252 0.026413 0.3739 0.281213 -0.0457Dec-09 13.595 -0.68668 -2.53543 6.428419 0.3089 0.216213 -0.54819Jan-10 14.383 5.796249 3.947499 15.58275 0.01627 -0.07642 -0.30166Feb-10 13.745 -4.43579 -6.28454 39.49547 -0.1654 -0.25809 1.621959Mar-10 14.324 4.212441 2.363691 5.587035 0.0476 -0.04509 -0.10657Apr-10 14.57 1.717397 -0.13135 0.017254 0.3089 0.216213 -0.0284
May-10 14.48 -0.61771 -2.46646 6.083413 0.01627 -0.07642 0.188479Jun-10 14.085 -2.7279 -4.57665 20.94573 -0.01644 -0.10913 0.499436Jul-10 14.809 5.14022 3.29147 10.83378 0.20462 0.111933 0.368424
Aug-10 15.304 3.342562 1.493812 2.231474 0.04885 -0.04384 -0.06548Sep-10 15.34 0.235233 -1.61352 2.603438 0.0316 -0.06109 0.098565Oct-10 15.354 0.091265 -1.75749 3.088755 0.5275 0.434813 -0.76418Nov-10 16.46 7.203335 5.354585 28.67158 -0.004 -0.09669 -0.51772Dec-10 16.05 -2.49089 -4.33964 18.83245 -0.1163 -0.20899 0.906928Jan-11 15.47 -3.61371 -5.46246 29.83844 0.21031 0.117623 -0.64251Feb-11 14.41 -6.85197 -8.70072 75.70256 -0.5325 -0.62519 5.439578Mar-11 14.18 -1.59611 -3.44486 11.86709 -0.075 -0.16769 0.577659Apr-11 15.122 6.643159 4.794409 22.98636 0.41605 0.323363 1.550335
May-11 14.464 -4.35128 -6.20003 38.44033 -0.0756 -0.16829 1.043384Jun-11 14.715 1.735343 -0.11341 0.012861 -0.0146 -0.10729 0.012167Jul-11 14.82 0.713558 -1.13519 1.288662 0.07534 -0.01735 0.019692
Aug-11 13.599 -8.23887 -10.0876 101.76 -0.1369 -0.22959 2.315986Sep-11 13.48 -0.87506 -2.72381 7.419165 -0.4249 -0.51759 1.409811Oct-11 13.55 0.519288 -1.32946 1.76747 -0.0429 -0.13559 0.180258Nov-11 13.41 -1.03321 -2.88196 8.305695 0.46348 0.370793 -1.06861Dec-11 12.047 -10.1641 -12.0128 144.3075 -0.4782 -0.57089 6.857955Jan-12 12.667 5.14651 3.29776 10.87522 -0.198 -0.29069 -0.95862Feb-12 13.97 10.28657 8.437821 71.19683 0.54018 0.447493 3.775866Mar-12 13.08 -6.37079 -8.21954 67.56091 0.18203 0.089343 -0.73436Apr-12 13.92 6.422018 4.573268 20.91478 -0.0679 -0.16059 -0.73441
1.84875 t 1844.38 52.41411var 52.69658 1.497546SD 7.2551 0.0273
100
UTI MNC fund (G)month NAV dx dx^2 Return(Y) dy dx*dy
May-09 32.98 Jun-09 36.18 9.70285 7.43185 55.2324 1.127349 1.034662 7.689455Jul-09 36.21 0.08291
9 -2.18808 4.7877-0.14652
-0.2392 0.523399Aug-09 38.13 5.30240
3 3.031403 9.1894020.360529
0.267842 0.811936Sep-09 41.88 9.83477
6 7.563776 57.21070.041412
-0.05128 -0.38784Oct-09 45.18 7.87965
6 5.608656 31.457020.4381
0.345413 1.937303Nov-09 45.69 1.12881
8 -1.14218 1.304580.3739
0.281213 -0.3212Dec-09 47.03 2.93280
8 0.661808 0.437990.3089
0.216213 0.143092Jan-10 49.27 4.76291
7 2.491917 6.2096520.01627
-0.07642 -0.19042Feb-10 46.33 -5.96712 -8.23812 67.86662 -0.1654 -0.25809 2.126152Mar-10 49.15 6.08676
9 3.815769 14.560090.0476
-0.04509 -0.17204Apr-10 50.85 3.4588 1.1878 1.410868 0.3089 0.216213 0.256818
May-10 50.78 -0.13766 -2.40866 5.801642 0.01627 -0.07642 0.184063Jun-10 53.6 5.55336
7 3.282367 10.77394-0.01644
-0.10913 -0.35819Jul-10 55.2 2.98507
5 0.714075 0.5099030.20462
0.111933 0.079929Aug-10 56.35 2.08333
3 -0.18767 0.0352190.04885
-0.04384 0.008227Sep-10 58.15 3.19432
1 0.923321 0.8525220.0316
-0.06109 -0.0564Oct-10 61.07 5.02149
6 2.750496 7.5652290.5275
0.434813 1.195951Nov-10 61.38 0.50761
4 -1.76339 3.109529-0.004
-0.09669 0.170496Dec-10 58.38 -4.88759 -7.15859 51.24535 -0.1163 -0.20899 1.496051Jan-11 58.08 -0.51387 -2.78487 7.755527 0.21031 0.117623 -0.32757Feb-11 55.65 -4.18388 -6.45488 41.66553 -0.5325 -0.62519 4.03551Mar-11 54.91 -1.32974 -3.60074 12.96532 -0.075 -0.16769 0.603797Apr-11 58.94 7.33928
2 5.068282 25.687490.41605
0.323363 1.638895May-11 59.76 1.39124
5 -0.87975 0.773968-0.0756
-0.16829 0.148051Jun-11 62.12 3.94913 1.67813 2.81612 -0.0146 -0.10729 -0.18004Jul-11 63.91 2.88152 0.61052 0.372734 0.07534 -0.01735 -0.01059
Aug-11 61.07 -4.44375 -6.71475 45.08785 -0.1369 -0.22959 1.541619Sep-11 60.96 -0.18012 -2.45112 6.007995 -0.4249 -0.51759 1.268668Oct-11 60.85 -0.18045 -2.45145 6.009588 -0.0429 -0.13559 0.332384
101
Nov-11 56.58 -7.01726 -9.28826 86.27169 0.46348 0.370793 -3.44402Dec-11 57.84 2.22693
5 -0.04406 0.001942-0.4782
-0.57089 0.025156Jan-12 57.66 -0.3112 -2.5822 6.667774 -0.198 -0.29069 0.750613Feb-12 64.15 11.2556
4 8.984636 80.723690.54018
0.447493 4.020562Mar-12 65.37 1.90179
3 -0.36921 0.1363140.18203
0.089343 -0.03299Apr-12 70.06 7.17454
5 4.903545 24.04475-0.0679
-0.16059 -0.78745
2.271011 676.5487 24.71938
19.32996 SD=4.397 Beta=0.03654 0.706268Templeton india equity (G)month NAV Return
dx dx^2Return (Y) dy dx*dy
May-09 18.661
Jun-09 13.51 -27.603-27.9812
782.9482
1.127349 1.034662 -28.9511
Jul-09 13.6 0.666173 0.287983
0.082934
-0.14652-0.2392 -0.06889
Aug-09 15.23 11.9852911.6071
134.7249
0.360529 0.267842 3.108867
Sep-09 16.28 6.894288 6.516098
42.45953
0.041412 -0.05128 -0.33412
Oct-09 16.88 3.685504 3.307314
10.93832
0.43810.345413 1.142389
Nov-09 16.76 -0.7109-1.08909
1.186118
0.37390.281213 -0.30627
Dec-09 17.45 4.116945 3.738755
13.97829
0.30890.216213 0.808367
Jan-10 18.59 6.532951 6.154761
37.88109
0.01627-0.07642 -0.47033
Feb-10 17.36 -6.61646-6.99465
48.92514
-0.1654-0.25809 1.805228
Mar-10 17.95 3.398618 3.020428
9.122982
0.0476-0.04509 -0.13618
Apr-10 18.58 3.509749 3.131559
9.806664
0.30890.216213 0.677084
May-10 17.59 -5.32831-5.7065
32.56414
0.01627-0.07642 0.436074
Jun-10 17.85 1.478113 1.099923 1.20983
-0.01644-0.10913 -0.12003
Jul-10 18.53 3.809524 3.431334
11.77405
0.204620.111933 0.384079
Aug-10 19.33 4.317323 3.939133
15.51677
0.04885-0.04384 -0.17268
Sep-10 21.31 10.24315 9.86495 97.3173 0.0316 -0.06109 -0.60262
102
5 4Oct-10 22.09 3.660253 3.28206
310.7719
40.5275
0.434813 1.427084Nov-10 21.76 -1.49389
-1.872083.50467
8-0.004
-0.09669 0.181006Dec-10 21.91 0.689338 0.31114
80.09681
3-0.1163
-0.20899 -0.06503Jan-11 21.5 -1.87129
-2.249485.06016
80.21031
0.117623 -0.26459Feb-11 20.55
8-4.3814
-4.7595922.6536
5-0.5325
-0.62519 2.975631Mar-11 19.88
6-3.2688
-3.6469913.3005
4-0.075
-0.16769 0.611553Apr-11 21.12 6.205371 5.82718
133.9560
30.41605
0.323363 1.884295May-11 20.21 -4.30871
-4.686921.9670
5-0.0756
-0.16829 0.788745Jun-11 20.44 1.13805
0.759860.57738
8-0.0146
-0.10729 -0.08152Jul-11 18.56 -9.19765
-9.5758491.6967
40.07534
-0.01735 0.166112Aug-11 18.14
9-2.21444
-2.592636.72172
9-0.1369
-0.22959 0.595234Sep-11 18.04
4-0.57854
-0.95673 0.91534-0.4249
-0.51759 0.495193Oct-11 17.60
8-2.41632
-2.794517.80926
2-0.0429
-0.13559 0.378899Nov-11 17.21
8-2.2149
-2.593096.72412
80.46348
0.370793 -0.9615Dec-11 17.86 3.728656 3.35046
611.2256
2-0.4782
-0.57089 -1.91274Jan-12 20.2 13.1019 12.7237
1161.892
9-0.198
-0.29069 -3.69862Feb-12 19.6 -2.9703
-3.3484911.2123
70.54018
0.447493 -1.49842Mar-12 19.27
1-1.67857
-2.056764.23026
80.18203
0.089343 -0.18376Apr-12 19.45 0.928857 0.55066
70.30323
4-0.0679
-0.16059 -0.08843
0.378187to
1665.056 tot -22.051
var47.5730
3 cov -0.63003SD 6.897 beta -0.01324
ICICI Prudential focused blue chip Equity fundmonth NAV Return dx dx^2 Return (Y) dy dx*dyMay-09 9.16 Jun-09 10.59 15.61135 13.87635 192.5532 1.127349 1.034662 14.3573
103
4Jul-09 10.73 1.322002
-0.413 0.170567-0.14652
-0.23920.09879
1Aug-09 11.25 4.846226
3.111226 9.6797240.360529
0.2678420.83331
6Sep-09 12.64 12.35556 10.62056 112.7962 0.041412 -0.05128 -0.54457Oct-09 13.18 4.272152
2.537152 6.437140.4381
0.3454130.87636
5Nov-09 13.25 0.531108 -1.20389 1.449357 0.3739 0.281213 -0.33855Dec-09 13.48 1.735849
0.000849 7.21E-070.3089
0.2162130.00018
4Jan-10 13.92 3.264095 1.529095 2.338131 0.01627 -0.07642 -0.11685Feb-10 13.14 -5.60345
-7.33845 53.85282-0.1654
-0.258091.89395
8Mar-10 14.02 6.697108 4.962108 24.62252 0.0476 -0.04509 -0.22373Apr-10 14.23 1.49786 -0.23714 0.056235 0.3089 0.216213 -0.05127
May-10 14.1 -0.91356-2.64856 7.014885
0.01627-0.07642
0.202395
Jun-10 14.44 2.411348 0.676348 0.457446 -0.01644 -0.10913 -0.07381Jul-10 15.03 4.085873 2.350873 5.526602 0.20462 0.111933 0.26314
Aug-10 15.39 2.39521 0.66021 0.435877 0.04885 -0.04384 -0.02894Sep-10 16.44 6.822612 5.087612 25.8838 0.0316 -0.06109 -0.31079Oct-10 17.09 3.953771
2.218771 4.9229460.5275
0.4348130.96475
1Nov-10 17.07 -0.11703
-1.85203 3.430006-0.004
-0.096690.17906
7Dec-10 16.84 -1.34739 -3.08239 9.501147 -0.1163 -0.20899 0.64418Jan-11 16.45 -2.31591 -4.05091 16.40991 0.21031 0.117623 -0.47648Feb-11 15.73 -4.3769 -6.1119 37.35532 -0.5325 -0.62519 3.82108Mar-11 15.76 0.190718
-1.54428 2.384806-0.075
-0.167690.25895
6Apr-11 16.78 6.472081
4.737081 22.439940.41605
0.3233631.53179
7May-11 15.99 -4.70799
-6.44299 41.51206-0.0756
-0.168291.08427
1Jun-11 15.96 -0.18762
-1.92262 3.696457-0.0146
-0.107290.20627
2Jul-11 16.56 3.759398 2.024398 4.098189 0.07534 -0.01735 -0.03512
Aug-11 15.34 -7.36715-9.10215 82.84913
-0.1369-0.22959
2.089735
Sep-11 15.4 0.391134-1.34387 1.805975
-0.4249-0.51759
0.695567
Oct-11 15.41 0.064935-1.67006 2.789117
-0.0429-0.13559
0.226439
Nov-11 15.65 1.55743 -0.17757 0.031531 0.46348 0.370793 -0.06584Dec-11 14.65 -6.38978
-8.12478 66.01199-0.4782
-0.570894.63832
9Jan-12 14.99 2.320819 0.585819 0.343184 -0.198 -0.29069 -0.17029
104
Feb-12 16.86 12.4749810.73998 115.3472
0.540180.447493
4.806067
Mar-12 16.31 -3.26216 -4.99716 24.9716 0.18203 0.089343 -0.44646Apr-12 16.03 -1.71674
-3.45174 11.9145-0.0679
-0.160590.55430
4
mean
1.735084 ∑dx^2 895.0895 ∑dx*dy
37.34361
variance 25.57399 covariance 1.06696
SD 5.0569 beta0.04172
4UTI Oppertunities fund(G)month NAV Dx dx^2 Return (Y) dy dx*dyMay-09 15.43 Jun-09 19.54 26.63642
24.67612255 608.9111.127349
1.03466225.5314
5Jul-09 19.1 -2.25179
-4.212091198 17.74171-0.14652
-0.23921.00755
2Aug-09 19.77 3.507853
1.547553403 2.3949220.360529
0.2678420.41449
9Sep-09 22.48 13.70764 11.74733784 137.9999 0.041412 -0.05128 -0.60235Oct-09 23.41 4.137011
2.176710676 4.7380690.4381
0.3454130.75186
4Nov-09 23.11 -1.2815 -3.241803631 10.50929 0.3739 0.281213 -0.91164Dec-09 23.39 1.211597 -0.748703289 0.560557 0.3089 0.216213 -0.16188Jan-10 22.67 -3.07824 -5.038538563 25.38687 0.01627 -0.07642 0.38503Feb-10 23.64 4.278783 2.318482532 5.375361 -0.1654 -0.25809 -0.59837Mar-10 23.36 -1.18443
-3.144733164 9.8893470.0476
-0.045090.14178
7Apr-10 24.111 3.214897 1.25459726 1.574014 0.3089 0.216213 0.27126
May-10 23.86 -1.04102-3.001318622 9.007913
0.01627-0.07642
0.229352
Jun-10 23.91 0.209556-1.750744258 3.065105
-0.01644-0.10913
0.191053
Jul-10 24.72 3.3877041.42740389 2.037482
0.204620.111933
0.159774
Aug-10 25.72 4.045307 2.085007443 4.347256 0.04885 -0.04384 -0.0914Sep-10 27.36 6.376361 4.416060809 19.50159 0.0316 -0.06109 -0.26976Oct-10 28.14 2.850877
0.890577193 0.7931280.5275
0.4348130.38723
5Nov-10 29.78 5.828003 3.867702843 14.95913 -0.004 -0.09669 -0.37396Dec-10 28.04 -5.84285
-7.803147549 60.88911-0.1163
-0.208991.63075
6Jan-11 27.28 -2.71041 -4.670713695 21.81557 0.21031 0.117623 -0.54938Feb-11 25.94 -4.91202
-6.87232346 47.22883-0.5325
-0.625194.29648
7Mar-11 26.08 0.539707
-1.420592984 2.018084-0.075
-0.167690.23821
5
105
Apr-11 27.75 6.4033744.443074233 19.74091
0.416050.323363
1.436726
May-11 26.94 -2.91892-4.879218919 23.80678
-0.0756-0.16829
0.821109
Jun-11 27.26 1.187825-0.772475204 0.596718
-0.0146-0.10729
0.082877
Jul-11 27.55 1.06383-0.896470213 0.803659
0.07534-0.01735
0.015551
Aug-11 27.67 0.435572-1.524728312 2.324796
-0.1369-0.22959
0.350058
Sep-11 26.37 -4.69823-6.658529129 44.33601
-0.4249-0.51759
3.446368
Oct-11 26.3 -0.26545-2.225753166 4.953977
-0.0429-0.13559
0.301783
Nov-11 26.71 1.558935 -0.401364639 0.161094 0.46348 0.370793 -0.14882Dec-11 26.64 -0.26207
-2.22237413 4.938947-0.4782
-0.570891.26872
4Jan-12 24.56 -7.80781
-9.768107808 95.41593-0.198
-0.290692.83946
2Feb-12 26.15 6.473941
4.513641368 20.372960.54018
0.4474932.01982
3Mar-12 28.44 8.75717
6.796870172 46.197440.18203
0.0893430.60725
3Apr-12 28.74 1.054852
-0.905447679 0.819835-0.0679
-0.160590.14540
3
1.960356∑dx^2 1275.213 ∑dx*dy
45.26389
variance 36.43467 covarian1.29325
4
SD 6.036 Beta0.03549
7
Fedelity Equity fundmonth NAV dx dx^2 Return (Y) dy dx*dyMay-09 19.07 Jun-09 22.78 19.45464 17.61774 310.3848 1.127349 1.034662 18.22841Jul-09 22.68 -0.43898 -2.27588 5.179637 -0.14652 -0.2392 0.544401
Aug-09 24.24 6.878307 5.041407 25.41578 0.360529 0.267842 1.350299Sep-09 26.78 10.47855 8.641648 74.67808 0.041412 -0.05128 -0.4431Oct-09 28.7 7.169529 5.332629 28.43694 0.4381 0.345413 1.84196Nov-09 29.21 1.777003 -0.0599 0.003588 0.3739 0.281213 -0.01684Dec-09 29.03 -0.61623 -2.45313 6.017834 0.3089 0.216213 -0.5304Jan-10 30.43 4.822597 2.985697 8.914388 0.01627 -0.07642 -0.22816Feb-10 29.06 -4.50214 -6.33904 40.18338 -0.1654 -0.25809 1.636023Mar-10 30.11 3.613214 1.776314 3.155292 0.0476 -0.04509 -0.08009Apr-10 31.68 5.214215 3.377315 11.40625 0.3089 0.216213 0.730219
May-10 31.29 -1.23106 -3.06796 9.412382 0.01627 -0.07642 0.234444
106
Jun-10 34.4 9.939278 8.102378 65.64852 -0.01644 -0.10913 -0.88419Jul-10 34.69 0.843023 -0.99388 0.987791 0.20462 0.111933 -0.11125
Aug-10 36.9 6.370712 4.533812 20.55545 0.04885 -0.04384 -0.19875Sep-10 37.84 2.547425 0.710525 0.504846 0.0316 -0.06109 -0.0434Oct-10 39.31 3.884778 2.047878 4.193804 0.5275 0.434813 0.890444Nov-10 36.84 -6.28339 -8.12029 65.93908 -0.004 -0.09669 0.785126Dec-10 35.36 -4.01737 -5.85427 34.27251 -0.1163 -0.20899 1.223467Jan-11 34.23 -3.1957 -5.0326 25.32708 0.21031 0.117623 -0.59195Feb-11 34.57 0.993281 -0.84362 0.711693 -0.5325 -0.62519 0.52742Mar-11 36.07 4.339022 2.502122 6.260616 -0.075 -0.16769 -0.41957Apr-11 34.97 -3.04963 -4.88653 23.87813 0.41605 0.323363 -1.58012
May-11 35.07 0.285959 -1.55094 2.405417 -0.0756 -0.16829 0.261003Jun-11 35.55 1.368691 -0.46821 0.219219 -0.0146 -0.10729 0.050233Jul-11 34.01 -4.33193 -6.16883 38.05442 0.07534 -0.01735 0.107011
Aug-11 33.19 -2.41106 -4.24796 18.04513 -0.1369 -0.22959 0.975275Sep-11 32.9 -0.87376 -2.71066 7.347662 -0.4249 -0.51759 1.403001Oct-11 33.14 0.729483 -1.10742 1.226372 -0.0429 -0.13559 0.150151Nov-11 32.89 -0.75438 -2.59128 6.714708 0.46348 0.370793 -0.96083Dec-11 30.4 -7.57069 -9.40759 88.50275 -0.4782 -0.57089 5.370671Jan-12 31.39 3.256579 1.419679 2.015488 -0.198 -0.29069 -0.41268Feb-12 35.55 13.25263 11.41573 130.3189 0.54018 0.447493 5.108458Mar-12 34.17 -3.88186 -5.71876 32.70418 0.18203 0.089343 -0.51093Apr-12 34.25 0.234124 -1.60278 2.568893 -0.0679 -0.16059 0.257385
mean 1.836997 ∑dx^2 1101.591 ∑dx*dy 34.66314
Variance 31.47403covariance 0.990375
SD 5.61 beta 0.031466
Franklin Indian blue chip fund (G)month NAV dx dx^2 Return (Y) dy dx*dyMay-09 127.1
5
Jun-09 149.36
17.4675615.87556 252.0333
1.1273491.034662 16.42584
Jul-09 149.32
-0.02678-1.61878 2.620452
-0.14652-0.2392 0.38722
Aug-09 155.29
3.9981252.406125 5.789437
0.3605290.267842 0.644461
Sep-09 168.26
8.3521156.760115 45.69916
0.041412-0.05128 -0.34663
Oct-09 177.52
5.5033883.911388 15.29895
0.43810.345413 1.351044
Nov-09 178.21
0.388689-1.20331 1.447958
0.37390.281213 -0.33839
107
Dec-09 160.96
-9.67959-11.2716 127.0488
0.30890.216213 -2.43706
Jan-10 189.8 17.9175 16.3255 266.5218 0.01627 -0.07642 -1.24755Feb-10 180.1
2-5.10011
-6.69211 44.78427-0.1654
-0.25809 1.727145Mar-10 190.4
85.751721
4.159721 17.303280.0476
-0.04509 -0.18755Apr-10 194.7
72.252205
0.660205 0.4358710.3089
0.216213 0.142745May-10 191.8
3-1.50947
-3.10147 9.6191330.01627
-0.07642 0.237005Jun-10 194.1
41.204191
-0.38781 0.150396-0.01644
-0.10913 0.04232Jul-10 199.3 2.657876 1.065876 1.136091 0.20462 0.111933 0.119307
Aug-10 204.58
2.6492721.057272 1.117825
0.04885-0.04384 -0.04635
Sep-10 222.08
8.5541116.962111 48.47099
0.0316-0.06109 -0.42529
Oct-10 224.22
0.963617-0.62838 0.394866
0.52750.434813 -0.27323
Nov-10 232.39
3.6437432.051743 4.209648
-0.004-0.09669 -0.19838
Dec-10 222.74
-4.1525-5.7445 32.99931
-0.1163-0.20899 1.200526
Jan-11 214.38
-3.75325-5.34525 28.57175
0.210310.117623 -0.62872
Feb-11 208.87
-2.5702-4.1622 17.32393
-0.5325-0.62519 2.602155
Mar-11 208.4 -0.22502 -1.81702 3.301563 -0.075 -0.16769 0.304691Apr-11 217.7 4.462572 2.870572 8.240183 0.41605 0.323363 0.928237
May-11 210.46
-3.32568-4.91768 24.18355
-0.0756-0.16829 0.827581
Jun-11 211.94
0.703222-0.88878 0.789927
-0.0146-0.10729 0.095354
Jul-11 215.86
1.849580.25758 0.066347
0.07534-0.01735 -0.00447
Aug-11 202.33
-6.26795-7.85995 61.77884
-0.1369-0.22959 1.804543
Sep-11 201.94
-0.19275-1.78475 3.185348
-0.4249-0.51759 0.923766
Oct-11 204 1.020105 -0.5719 0.327064 -0.0429 -0.13559 0.077542Nov-11 200.7
5-1.59314
-3.18514 10.14510.46348
0.370793 -1.18103Dec-11 191.2
2-4.7472
-6.3392 40.18543-0.4782
-0.57089 3.618966Jan-12 195.5
42.259178
0.667178 0.445126-0.198
-0.29069 -0.19394Feb-12 219.0
812.03846
10.44646 109.12850.54018
0.447493 4.674717Mar-12 215.4 -1.63867 -3.23067 10.43723 0.18203 0.089343 -0.28864
108
9Apr-12 208.7
9-3.10919
-4.70119 22.10122-0.0679
-0.16059 0.75495
1.592734 ∑dx^2 1217.293 ∑dx*dy 31.0929variance 34.77979 cov 0.888368SD 5.897 beta 0.025543
HDFC Top 200 fund (G)month NAV dx dx^2 Return (Y) dy dx*dyMay-09 115.4
8
Jun-09 142.33
23.2507821.42858 459.184
1.1273491.034662 22.17134
Jul-09 135.88
-4.53172-6.35392 40.37233
-0.14652-0.2392 1.519887
Aug-09 154.28
13.5413611.71916 137.3387
0.3605290.267842 3.13888
Sep-09 167.18
8.3614216.539221 42.76141
0.041412-0.05128 -0.3353
Oct-09 177.36
6.0892454.267045 18.20767
0.43810.345413 1.473893
Nov-09 178.11
0.422869-1.39933 1.958128
0.37390.281213 -0.39351
Dec-09 176.4 -0.96008 -2.78228 7.741087 0.3089 0.216213 -0.60157Jan-10 185.2
55.017007
3.194807 10.206790.01627
-0.07642 -0.24414Feb-10 171.2
6-7.55196
-9.37416 87.87482-0.1654
-0.25809 2.419348Mar-10 181.5
86.025925
4.203725 17.671310.0476
-0.04509 -0.18953Apr-10 184.3
11.50347
-0.31873 0.1015890.3089
0.216213 -0.06891May-10 185.8
60.840974
-0.98123 0.9628040.01627
-0.07642 0.074982Jun-10 196.3 5.617131 3.794931 14.4015 -0.01644 -0.10913 -0.41413Jul-10 197.3
40.529801
-1.2924 1.6702940.20462
0.111933 -0.14466Aug-10 203.9
33.339414
1.517214 2.3019390.04885
-0.04384 -0.06651Sep-10 218.4
97.139705
5.317505 28.275860.0316
-0.06109 -0.32483Oct-10 225.1
73.057348
1.235148 1.5255910.5275
0.434813 0.537058Nov-10 236.0
74.840787
3.018587 9.111867-0.004
-0.09669 -0.29186Dec-10 221.6
3-6.11683
-7.93903 63.02819-0.1163
-0.20899 1.659154Jan-11 216.1
1-2.49064
-4.31284 18.600570.21031
0.117623 -0.50729
109
Feb-11 204.32
-5.45556-7.27776 52.96572
-0.5325-0.62519 4.549958
Mar-11 202.41
-0.93481-2.75701 7.601094
-0.075-0.16769 0.462314
Apr-11 213.41
5.4345143.612314 13.04881
0.416050.323363 1.168089
May-11 206.21
-3.37379-5.19599 26.99829
-0.0756-0.16829 0.874417
Jun-11 205.49
-0.34916-2.17136 4.714798
-0.0146-0.10729 0.232959
Jul-11 209.29
1.8492380.027038 0.000731
0.07534-0.01735 -0.00047
Aug-11 185.63
-11.3049-13.1271 172.3204
-0.1369-0.22959 3.013809
Sep-11 191.49
3.1568171.334617 1.781203
-0.4249-0.51759 -0.69078
Oct-11 192.03
0.281999-1.5402 2.372219
-0.0429-0.13559 0.208831
Nov-11 181.63
-5.41582-7.23802 52.38894
0.463480.370793 -2.68381
Dec-11 170.98
-5.86357-7.68577 59.07104
-0.4782-0.57089 4.387705
Jan-12 184.54
7.9307526.108552 37.31441
-0.198-0.29069 -1.77568
Feb-12 208.64
13.059511.2373 126.2769
0.540180.447493 5.028613
Mar-12 205.01
-1.73984-3.56204 12.68812
0.182030.089343 -0.31824
Apr-12 202.09
-1.42432-3.24652 10.5399
-0.0679-0.16059 0.521349
1.822202 ∑dx^2 1543.379 ∑dx*dy 44.39137Variance 44.09654 cov 1.268325SD 6.641 Beta 0.028762
JP MORGAN INDIA EQUITY FUNDmonth NAV dx dx^2 Return (Y) dy dx*dy
May-09 7.75 Jun-09 9.25 19.35484 17.80984 317.1904 1.127349 1.034662 18.42717Jul-09 9.32 0.756757 -0.78824 0.621327 -0.14652 -0.2392 0.188551
Aug-09 9.6 3.004292 1.459292 2.129533 0.360529 0.267842 0.390859Sep-09 10.77 12.1875 10.6425 113.2628 0.041412 -0.05128 -0.5457Oct-09 11.34 5.292479 3.747479 14.0436 0.4381 0.345413 1.294428Nov-09 11.29 -0.44092 -1.98592 3.943867 0.3739 0.281213 -0.55847Dec-09 11.18 -0.97431 -2.51931 6.346941 0.3089 0.216213 -0.54471Jan-10 11.27 0.805009 -0.73999 0.547587 0.01627 -0.07642 0.056548Feb-10 11.09 -1.59716 -3.14216 9.873173 -0.1654 -0.25809 0.810951Mar-10 11.74 5.861136 4.316136 18.62903 0.0476 -0.04509 -0.1946
110
Apr-10 11.8 0.511073 -1.03393 1.069005 0.3089 0.216213 -0.22355May-10 12.14 2.881356 1.336356 1.785847 0.01627 -0.07642 -0.10212Jun-10 12.67 4.365733 2.820733 7.956535 -0.01644 -0.10913 -0.30782Jul-10 13.36 5.445935 3.900935 15.2173 0.20462 0.111933 0.436643
Aug-10 13.86 3.742515 2.197515 4.829072 0.04885 -0.04384 -0.09633Sep-10 14.49 4.545455 3.000455 9.002727 0.0316 -0.06109 -0.18329Oct-10 15.02 3.657695 2.112695 4.46348 0.5275 0.434813 0.918627Nov-10 14.1 -6.12517 -7.67017 58.83145 -0.004 -0.09669 0.741605Dec-10 14.12 0.141844 -1.40316 1.968847 -0.1163 -0.20899 0.293241Jan-11 13.37 -5.31161 -6.85661 47.01317 0.21031 0.117623 -0.8065Feb-11 12.84 -3.9641 -5.5091 30.35017 -0.5325 -0.62519 3.444217Mar-11 12.71 -1.01246 -2.55746 6.540607 -0.075 -0.16769 0.428853Apr-11 13.37 5.192762 3.647762 13.30616 0.41605 0.323363 1.179551
May-11 12.96 -3.06657 -4.61157 21.26655 -0.0756 -0.16829 0.776067Jun-11 13.16 1.54321 -0.00179 3.2E-06 -0.0146 -0.10729 0.000192Jul-11 13.49 2.507599 0.962599 0.926596 0.07534 -0.01735 -0.0167
Aug-11 12.41 -8.00593 -9.55093 91.22027 -0.1369 -0.22959 2.192769Sep-11 12.21 -1.6116 -3.1566 9.964146 -0.4249 -0.51759 1.633817Oct-11 12.44 1.883702 0.338702 0.114719 -0.0429 -0.13559 -0.04592Nov-11 12.46 0.160772 -1.38423 1.916088 0.46348 0.370793 -0.51326Dec-11 11.15 -10.5136 -12.0586 145.4109 -0.4782 -0.57089 6.884123Jan-12 11.6 4.035874 2.490874 6.204455 -0.198 -0.29069 -0.72406Feb-12 12.83 10.60345 9.058448 82.05549 0.54018 0.447493 4.053592Mar-12 12.9 0.545596 -0.9994 0.998808 0.18203 0.089343 -0.08929Apr-12 12.6 -2.32558 -3.87058 14.9814 -0.0679 -0.16059 0.621565
mean 1.545072 ∑dx^2 1063.982 ∑dx*dy 39.82105Var 30.39949 Cov 1.137744SD 5.514 Beta 0.037426
RELLIANCE QUANT PLUS FUND RETAIL PLAN [G]month NAV dx dx^2 Return (Y)
May-09 7.97 dy dx*dyJun-09 10.09 26.59975 24.92375 621.1933 1.127349Jul-09 9.73 -3.56789 -5.24389 27.49837 -0.14652 1.034662 25.78766
Aug-09 10.27 5.549846 3.873846 15.00668 0.360529 -0.2392 1.254362Sep-09 13.32 29.69815 28.02215 785.2409 0.041412 0.267842 1.037578Oct-09 11.71 -12.0871 -13.7631 189.4226 0.4381 -0.05128 -1.43685Nov-09 11.48 -1.96413 -3.64013 13.25057 0.3739 0.345413 -4.75395Dec-09 11.31 -1.48084 -3.15684 9.965615 0.3089 0.281213 -1.02365Jan-10 11.77 4.067197 2.391197 5.717824 0.01627 0.216213 -0.68255Feb-10 11.16 -5.18267 -6.85867 47.04132 -0.1654 -0.07642 -0.18273Mar-10 11.69 4.749104 3.073104 9.443968 0.0476 -0.25809 1.770133Apr-10 11.85 1.368691 -0.30731 0.094439 0.3089 -0.04509 -0.13856
111
May-10 11.5 -2.95359 -4.62959 21.43307 0.01627 0.216213 -0.06644Jun-10 12.03 4.608696 2.932696 8.600704 -0.01644 -0.07642 0.353779Jul-10 12.36 2.743142 1.067142 1.138792 0.20462 -0.10913 -0.32004
Aug-10 12.66 2.427184 0.751184 0.564278 0.04885 0.111933 0.119448Sep-10 13.72 8.372828 6.696828 44.8475 0.0316 -0.04384 -0.03293Oct-10 14.43 5.174927 3.498927 12.24249 0.5275 -0.06109 -0.40909Nov-10 15.6 8.108108 6.432108 41.37201 -0.004 0.434813 1.521379Dec-10 14.43 -7.5 -9.176 84.19898 -0.1163 -0.09669 -0.6219Jan-11 13.63 -5.54401 -7.22001 52.12848 0.21031 -0.20899 1.917665Feb-11 13.21 -3.08144 -4.75744 22.63322 -0.5325 0.117623 -0.84924Mar-11 13.23 0.1514 -1.5246 2.324404 -0.075 -0.62519 2.974288Apr-11 13.82 4.459562 2.783562 7.748215 0.41605 -0.16769 0.255656
May-11 13.03 -5.71635 -7.39235 54.64688 -0.0756 0.323363 0.900101Jun-11 12.97 -0.46048 -2.13648 4.564529 -0.0146 -0.16829 1.244037Jul-11 13.58 4.703161 3.027161 9.163705 0.07534 -0.10729 0.229216
Aug-11 12.2 -10.162 -11.838 140.1383 -0.1369 -0.01735 -0.05251Sep-11 11.69 -4.18033 -5.85633 34.29658 -0.4249 -0.22959 2.717852Oct-11 12.32 5.389222 3.713222 13.78801 -0.0429 -0.51759 3.031159Nov-11 12.05 -2.19156 -3.86756 14.95801 0.46348 -0.13559 -0.50346Dec-11 11.28 -6.39004 -8.06604 65.06103 -0.4782 0.370793 -1.43406Jan-12 11.75 4.166667 2.490667 6.20342 -0.198 -0.57089 4.604798Feb-12 13.43 14.29787 12.62187 159.3117 0.54018 -0.29069 -0.724Mar-12 12.94 -3.64855 -5.32455 28.35081 0.18203 0.447493 5.6482Apr-12 12.7 -1.85471 -3.53071 12.46594 -0.0679 0.089343 -0.47571
-0.16059 0.5669871.676281 ∑dx^2 2566.057
Variance 73.3159 ∑dx*dy 42.22662SD 8.56 Cov 1.206475
Beta 0.016456
ING Core Equity Fundmonth NAV dx dx^2 Return (Y) dy dx*dy
May-09 23.18 Jun-09 28.22 21.74288 20.26888 410.8276 1.127349 1.034662 20.97145Jul-09 28.28 0.212615 -1.26138 1.591092 -0.14652 -0.2392 0.301729
Aug-09 29.09 2.864215 1.390215 1.932698 0.360529 0.267842 0.372358Sep-09 32.35 11.2066 9.7326 94.72351 0.041412 -0.05128 -0.49904Oct-09 33.41 3.276662 1.802662 3.249589 0.4381 0.345413 0.622663Nov-09 32.99 -1.25711 -2.73111 7.458954 0.3739 0.281213 -0.76802Dec-09 33.78 2.394665 0.920665 0.847624 0.3089 0.216213 0.19906Jan-10 34.69 2.693902 1.219902 1.48816 0.01627 -0.07642 -0.09322Feb-10 32.5 -6.31306 -7.78706 60.63828 -0.1654 -0.25809 2.009739Mar-10 34.37 5.753846 4.279846 18.31708 0.0476 -0.04509 -0.19297Apr-10 35.35 2.851324 1.377324 1.897021 0.3089 0.216213 0.297795
May-10 34.39 -2.7157 -4.1897 17.55359 0.01627 -0.07642 0.320164
112
Jun-10 35.11 2.093632 0.619632 0.383944 -0.01644 -0.10913 -0.06762Jul-10 36.81 4.841925 3.367925 11.34292 0.20462 0.111933 0.376982
Aug-10 37.15 0.923662 -0.55034 0.302872 0.04885 -0.04384 0.024125Sep-10 39.5 6.325707 4.851707 23.53906 0.0316 -0.06109 -0.29638Oct-10 41.87 6 4.526 20.48468 0.5275 0.434813 1.967964Nov-10 43.18 3.128732 1.654732 2.738137 -0.004 -0.09669 -0.15999Dec-10 40.29 -6.69291 -8.16691 66.69847 -0.1163 -0.20899 1.706779Jan-11 38.5 -4.44279 -5.91679 35.0084 0.21031 0.117623 -0.69595Feb-11 37.58 -2.38961 -3.86361 14.92749 -0.5325 -0.62519 2.415479Mar-11 36.75 -2.20862 -3.68262 13.5617 -0.075 -0.16769 0.617528Apr-11 39.2 6.666667 5.192667 26.96379 0.41605 0.323363 1.679116
May-11 38.4 -2.04082 -3.51482 12.35393 -0.0756 -0.16829 0.591498Jun-11 37.75 -1.69271 -3.16671 10.02804 -0.0146 -0.10729 0.339747Jul-11 39.13 3.655629 2.181629 4.759506 0.07534 -0.01735 -0.03784
Aug-11 38.76 -0.94557 -2.41957 5.8543 -0.1369 -0.22959 0.555501Sep-11 35.39 -8.69453 -10.1685 103.399 -0.4249 -0.51759 5.263099Oct-11 35.36 -0.08477 -1.55877 2.429763 -0.0429 -0.13559 0.211349Nov-11 33.95 -3.98756 -5.46156 29.8286 0.46348 0.370793 -2.02511Dec-11 31.93 -5.94993 -7.42393 55.11468 -0.4782 -0.57089 4.238223Jan-12 33.71 5.574695 4.100695 16.8157 -0.198 -0.29069 -1.19202Feb-12 38.11 13.05251 11.57851 134.0618 0.54018 0.447493 5.181301Mar-12 37.3 -2.12543 -3.59943 12.95587 0.18203 0.089343 -0.32158Apr-12 36.51 -2.11796 -3.59196 12.90219 -0.0679 -0.16059 0.576822
1.474309 ∑dx^2 1236.98 ∑dx*dy 44.49072Variance 35.34229 Cov 1.271164SD 5.95 beta 0.035967
HSBC INDIA OPPORTUNITIES month NAV dx dx^2 Return (Y) dy dx*dyMay-09 22.84 Jun-09 26.37 15.45534 14.13864 199.9012 1.127349 1.034662 14.62872Jul-09 27.22 3.22336 1.90666 3.635352 -0.14652 -0.2392 -0.45608
Aug-09 28.51 4.739162 3.422462 11.71325 0.360529 0.267842 0.916678Sep-09 30.2 5.927745 4.611045 21.26173 0.041412 -0.05128 -0.23643Oct-09 31.28 3.576159 2.259459 5.105155 0.4381 0.345413 0.780446Nov-09 31.6 1.023018 -0.29368 0.086249 0.3739 0.281213 -0.08259Dec-09 31.84 0.759494 -0.55721 0.310479 0.3089 0.216213 -0.12048Jan-10 32.49 2.041457 0.724757 0.525273 0.01627 -0.07642 -0.05538Feb-10 30.62 -5.75562 -7.07232 50.01767 -0.1654 -0.25809 1.825273Mar-10 31.68 3.46179 2.14509 4.60141 0.0476 -0.04509 -0.09672Apr-10 31.64 -0.12626 -1.44296 2.082141 0.3089 0.216213 -0.31199
May-10 31.39 -0.79014 -2.10684 4.438771 0.01627 -0.07642 0.160998Jun-10 32.14 2.389296 1.072596 1.150462 -0.01644 -0.10913 -0.11705Jul-10 33.43 4.01369 2.69699 7.273756 0.20462 0.111933 0.301882
113
Aug-10 33.92 1.465749 0.149049 0.022216 0.04885 -0.04384 -0.00653Sep-10 37.09 9.345519 8.028819 64.46193 0.0316 -0.06109 -0.49046Oct-10 37.87 2.102993 0.786293 0.618256 0.5275 0.434813 0.34189Nov-10 39.12 3.300766 1.984066 3.936517 -0.004 -0.09669 -0.19183Dec-10 36.47 -6.77403 -8.09073 65.45989 -0.1163 -0.20899 1.690857Jan-11 34.76 -4.68879 -6.00549 36.06585 0.21031 0.117623 -0.70638Feb-11 33.71 -3.02071 -4.33741 18.81316 -0.5325 -0.62519 2.711695Mar-11 33.41 -0.88994 -2.20664 4.869276 -0.075 -0.16769 0.370025Apr-11 36.04 7.871895 6.555195 42.97058 0.41605 0.323363 2.119707
May-11 34.26 -4.93896 -6.25566 39.13324 -0.0756 -0.16829 1.052746Jun-11 34.31 0.145943 -1.17076 1.370672 -0.0146 -0.10729 0.125607Jul-11 35.18 2.535704 1.219004 1.48597 0.07534 -0.01735 -0.02115
Aug-11 32.85 -6.62308 -7.93978 63.04013 -0.1369 -0.22959 1.822871Sep-11 32.65 -0.60883 -1.92553 3.707658 -0.4249 -0.51759 0.996628Oct-11 32.49 -0.49005 -1.80675 3.264331 -0.0429 -0.13559 0.244971Nov-11 32.68 0.584795 -0.7319 0.535684 0.46348 0.370793 -0.27139Dec-11 31.02 -5.07956 -6.39626 40.91213 -0.4782 -0.57089 3.651541Jan-12 31.5 1.547389 0.230689 0.053217 -0.198 -0.29069 -0.06706Feb-12 34.98 11.04762 9.730919 94.69079 0.54018 0.447493 4.354518Mar-12 34.8 -0.51458 -1.83128 3.353586 0.18203 0.089343 -0.16361Apr-12 34.74 -0.17241 -1.48911 2.21746 -0.0679 -0.16059 0.239132
Mean 1.316741 ∑dx^2 803.0854 ∑dx*dy 34.94107variance 22.9453 Covariance 0.998316SD 4.738 Beta 0.043509
BNP Paribas Equity Fund month NAV dx dx^2 Return (Y) dy dx*dyMay-09 22.64 Jun-09 27.42 21.11307 19.68207 387.384 1.127349 1.034662 20.3643Jul-09 24.63 -10.1751 -11.6061 134.7005 -0.14652 -0.2392 2.776222
Aug-09 27.21 10.47503 9.04403 81.79449 0.360529 0.267842 2.422369Sep-09 30.36 11.57663 10.14563 102.9337 0.041412 -0.05128 -0.52022Oct-09 31.26 2.964427 1.533427 2.351398 0.4381 0.345413 0.529666Nov-09 30.46 -2.55918 -3.99018 15.92154 0.3739 0.281213 -1.12209Dec-09 30.85 1.280368 -0.15063 0.02269 0.3089 0.216213 -0.03257Jan-10 31.62 2.495948 1.064948 1.134115 0.01627 -0.07642 -0.08138Feb-10 27.63 -12.6186 -14.0496 197.3911 -0.1654 -0.25809 3.626018Mar-10 30.82 11.54542 10.11442 102.3015 0.0476 -0.04509 -0.45603Apr-10 31.24 1.362751 -0.06825 0.004658 0.3089 0.216213 -0.01476
May-10 30.41 -2.65685 -4.08785 16.71052 0.01627 -0.07642 0.312381Jun-10 31.6 3.913186 2.482186 6.16125 -0.01644 -0.10913 -0.27087Jul-10 32.15 1.740506 0.309506 0.095794 0.20462 0.111933 0.034644
Aug-10 32.5 1.088647 -0.34235 0.117206 0.04885 -0.04384 0.015008
114
Sep-10 35.16 8.184615 6.753615 45.61132 0.0316 -0.06109 -0.41256Oct-10 36.84 4.778157 3.347157 11.20346 0.5275 0.434813 1.455387Nov-10 37.61 2.090119 0.659119 0.434438 -0.004 -0.09669 -0.06373Dec-10 35.55 -5.47727 -6.90827 47.72415 -0.1163 -0.20899 1.443738Jan-11 34.03 -4.27567 -5.70667 32.56606 0.21031 0.117623 -0.67124Feb-11 33.3 -2.14517 -3.57617 12.78896 -0.5325 -0.62519 2.235773Mar-11 32.77 -1.59159 -3.02259 9.13606 -0.075 -0.16769 0.506849Apr-11 38.74 18.21788 16.78688 281.7994 0.41605 0.323363 5.428257
May-11 33.17 -14.3779 -15.8089 249.9214 -0.0756 -0.16829 2.660433Jun-11 33.61 1.3265 -0.1045 0.01092 -0.0146 -0.10729 0.011212Jul-11 34.03 1.249628 -0.18137 0.032896 0.07534 -0.01735 0.003146
Aug-11 32.91 -3.29121 -4.72221 22.2993 -0.1369 -0.22959 1.084159Sep-11 32.52 -1.18505 -2.61605 6.843718 -0.4249 -0.51759 1.354034Oct-11 32.81 0.891759 -0.53924 0.290781 -0.0429 -0.13559 0.073114Nov-11 30.72 -6.37001 -7.80101 60.85574 0.46348 0.370793 -2.89256Dec-11 30.49 -0.7487 -2.1797 4.751083 -0.4782 -0.57089 1.244361Jan-12 31.15 2.164644 0.733644 0.538234 -0.198 -0.29069 -0.21326Feb-12 34.16 9.662921 8.231921 67.76453 0.54018 0.447493 3.683727Mar-12 34.61 1.31733 -0.11367 0.012921 0.18203 0.089343 -0.01016Apr-12 33.96 -1.87807 -3.30907 10.94994 -0.0679 -0.16059 0.531394
1.431121 ∑dx^2 1914.56 ∑dx*dy 45.03477Variance 54.70171 Cov 1.286708SD 7.396 Beta 0.023522
Bibliography
Books
Punithavathy Pandian -“Security Analysis and Portfolio Management”-
Vikas Publishing House Pvt Ltd, New Delhi (Reprint 2005)
S. Kevin-“Portfolio Management”-Prentice – Hall of India Pvt Ltd, New Delhi (Reprint 2006)
Preethi singh-“Investment Management-Security Analysis and Portfolio Management”-Himalaya Publishing House, Mumbai(Reprint 2001)
Kothari. C.R – Research Methodology Methods and Techniques Investment management and security analysis : Dhanesh Kumar Khathri Mutual funds in India : Nalini Prava Tripathi
115
Websites
www.nseindia.com
www.bseindia.com
www.investopedia.com
www.amfinindia.com
www.mutualfundsindia.com
www.moneycontrol.com
www.hedgeequities.com
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