12853150 comparative analysis of mutual funds 110904134713 phpapp02

8/3/2019 12853150 Comparative Analysis of Mutual Funds 110904134713 Phpapp02

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COMPARATIVE ANALYSIS OF MUTUAL FUNDS


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MUTUAL FUND OPERATION FLOW CHART


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TYPES OF MUTUAL FUNDS SCHEMES

According to Maturity PeriodOpen Ended Close Ended

According to Investment Objective Growth/Equity Oriented Scheme Income / Debt Oriented Schemes Balanced Scheme


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INSTRUMENTS OF INVESTMENTEQUITY CONVERTIBLE DEBENTURES FIXED INCOME SECURITIES SHORT TERM SECURITIES


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Facilities Provided by Mutual Funds to the Investors

Systematic Investment Plan (SIP) Systematic Withdrawal Plan (SWP) Systematic Transfer Plan (STP) Dividend Transfer Plan (DTP) Auto debit facility and Electronic

Clearing Service (ECS) Switching


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INTRODUCTION TO THE ORGANIZATION


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SHAREKHAN BACKGROUNDRetail broking arm of the Mumbai based SSKI group. Established in 1922 Share khan's ground network includes over 700+ Share shops in 130+ cities in India. SSKIgroup ventured into institutional broking and corporate finance 18 years ago.


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OBJECTIVES OF THE STUDYThe present study focuses on the comparative analysis of mutual funds schemes performance. To evaluate the schemes on the basis of risk and return by calculating Beta, Alpha, Standard Deviation.


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RESEARCH METHEDOLOGY

TYPE OF RESEARCH -- Descriptive cum Analytical research

has been used because the researcher has no control over the variables. He can only report what has happened or what is happening. . In Analytical Research, the

researcher has to use facts and information already available and make an analysis on the basis of these only.


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DATA COLLECTION

The data has been collected from the secondary sources i.e. -- Fact sheets -- Annual Reports -- Offer Documents NAVs of selected schemes and closing values of S&P CNX 500 have been noted from www.amfindia.com and Mutual Fund Houses PersonalSites.


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SAMPLE & SAMPLING TECHNIQUE

SAMPLE SIZE: 7 Schemes of 4 Mutual Fund Companies namely Franklin Templeton, Reliance, HDFC and ICICI Prudential has been selected. SAMPLING TECHNIQUE: In the p

resent study Convenience Sampling technique has been used.


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DATA ANALYSIS AND FINDINGS

The following parameters have been chosen for comparison: Fund Objective Fund Style Fund Details History Portfolio Characteristics Sectoral Allocation PortfolioConcentration Performance Analysis


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Following Tests have been applied:

BETA ALPHA STANDARD DEVIATION


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BETA

A Beta is a measure of risk. It compares a mutual funds volatility with that of abenchmark. If the beta of the stock is 1, it means that the returns in the stoc

k are highly correlated to the benchmark index. If Beta is greater than 1, it means the stock is more volatile. If Beta is less than 1, than the stock is less volatile.


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COMPARATIVE ANALYSIS (BETA)

LARGE CAP FUND0.96 0.94 0.92 0.9 0.88 0.86 0.84 Franklin HDFC PRU ICICI Reliance India TOP 200Growth Vision Bluechip BETA


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MID CAP FUND1 0.98 0.96 0.94 0.92 0.9 0.88 0.86 0.84

BETA

F ranklin Prim a

HC DF C apital Builder

R eliance Growth


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ALPHA

Alpha is a financial term describing that part of an investors return that is dueto the skills of the investment manager, as distinct from the return of the mar

ket as a whole. i < rf: the m

n

ger or firm h

s destroyed v

lue i = rf: the m

n

ger or firm h

s neither cre

ted nor destroyed v

lue i > rf: the m

n

ger or firm h

scre

ted v

lue


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LARGE CAP FUNDS5 4 .5 4 3 .5 3 2 .5 2 1 .5 1 0 .5 0

AL H PA

F nk r

lin H F D C P U IC I R li

R IC e nce Indi

T OP 2 0 G 0 row th V ion isB chip lue


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MID CAP FUNDS6 5 4 3 2 1 0 -1 -2 -3 F n lin r

k P rim

HF DC Cp l

it

B ild r ue R li

ce ne G row th AP A LH


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STANDARD DEVIATIONThe tot

l risk of

given fund is me

sured in terms of st

nd

rd devi

tion. It tells us how much the v

lues h

ve devi

ted from the me

n of the v

lues.


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STANDARD DEVIATION

LARGE CAP FUNDS26 25.5 25 24.5 24 23.5 23 22.5 22 21.5

S TANDARD DEVIATION

F r

nklin HDF TOP PRU IC I Reli

nce C IC Indi

200 Growth Vis ion Bluechip


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MID CAP FUNDS29 28 27 26 25 24 23 22 F r

nklin HDF Reli

nce C Prim

C

pit

l Growth BuilderS TANDARD DEVIATION


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FINDINGSICICI PRU--This fund h

s

n

ggressive stock-picking style, but with

c

reful eye on risk control. -The fund h

s

gre

t exposure to b

nking

nd softw

re sector stocks. FRANKLIN TEMPLETON - Fr

nklin Indi

Blue-chip fund is one of the biggest diversified equity funds

nd is one of the most preferred l

rge c

p funds. - One of the

stonishing fe

tures of the funds investment style is the buy-

nd hold-str

tegy.


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RELIANCE -High returns c

n be expected from this fund but its

ggressiveness does not m

ke it

pt for conserv

tive investors. HDFC -The fund

s exposure to l

rge-c

p stocks is

cushion in the f

lling m

rkets. It h

s not been

top performer

s some of the other mid-c

p funds, but quite

consistent one -This fund is

good bet for those w

nting to invest in mid-c

ps but not willing to t

ke too much of

risk.


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CONCLUSIONS

Best option consider by the investors when it comes to investing their money inMutu

l Funds. This industry is growing

t

good p

ce. Money Invested in Mutu

l

Funds is s

fe. Investors who

re looking for very high inst

nt returns, mutu

l funds

re not recommended; they

re me

nt for investors committed to p

tient investing.


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RECOMMENDATIONSFollowing suggestions c

n be m

de so th

t the mutu

l fund houses c

n design their schemes in such

m

nner th

t it c

n improve their perform

nce

s comp

red toother AMCs. A thorough

n

lysis should be done while selecting the securities for

p

rticul

r portfolio. Fund

ment

l security

n

lysis should

lso be done i.e.the rel

tionship between

securitys return

nd economy wide events.


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THANK YOU..!!


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