presentation on summer training project

PRESENTATION ON SIX – WEEKS INDUSTRIAL TRAINING AT STANDARD CHARTERED

Presented By

Pallavi Saggar

(MBA-2A)

CHAPTER-I (INTRODUCTION)

Company Introduction

Founded --1853 Headquarters -- London Key people -- John Peace (Chairman) Industry -- Banking Products – Financial Services Operating Profit -- $15184 m (2009) Profit before taxation -- $5151 m (2009) Employees -- 77326 (2009) Website -- www.standardchartered

.com

WHAT STANDARD CHARTERED STAND FOR?? Strategic Intent Brand Promise Value Approach

- Participation

- Competitive Positioning

- Customers

- People

- Communities

STANDARD CHARTERED BANKING SERVICES

Personal Banking

Consumer Banking

Wholesale Banking

SME Banking

Private Banking

Asia

Jaspal Bindra

Asia

Jaspal Bindra

Risk Mgt

Rudy Markham

Risk Mgt

Rudy Markham

Wholesale Banking Mike Rees

Wholesale Banking Mike Rees

C FO

Richard Medding

C FO

Richard Medding

PeoplProperty,Assurance

Tim Miller

PeoplProperty,Assurance

Tim Miller

Secretary

Anniemarie Durbin)

Secretary

Anniemarie Durbin)

Consumer Banking

Steve Bebertamini

Consumer Banking

Steve Bebertamini

H R

Tracy Clark

H R

Tracy Clark

Chairman of Board( John Peace )

Chairman of Board( John Peace )

ORGANISATION CHART OF STANDARD CHARTERED

ORGANISATION CHART IN CASE OF BRANCH

SWOT ANALYSIS1. Strengths: Good and diverse product One of the profitable MNC in India. Maintain a position as a leading cash management provider.

2. Weakness: Weak Human Resource Management. Have few locations.

CONTD…

3. Opportunities: Scope of opening more Branches Increasing Banking need. System is so transparent

4. Threat: Competition from major players like HSBC,

CITIBANK.

BANKING RATIOS Return on Equity = Net Income

Shareholder’s equity

Table 1.1

Ratio March,

2010

March,

2009

March,

2008

March,

2007

Return on

equity (%)

18.33 18.55 20.35 23.51

CONTD… Return on Assets = Net Operating Income

Total Assets

  Table 1.2

Ratio March,

2010

March,

2009

March,

2008

March,

2007

Return on

Assets (%)

4.8 3.8 4.1 3.96

CONTD… Shareholder’s equity to assets =

Shareholder’s equity

Total Assets

Table1.3Ratio March,

2010

March,

2009

March,

2008

March,

2007

Shareholder’s

equity to assets

(%)

12.9 10.5 11.39 9.85

CONTD… Borrowings to total Liability & Equity =

Borrowings

Total Liability +Equity

Table 1.4

Ratio March,

2010

March,

2009

March,

2008

March,

2007

Borrowings

to total

Liability&

Equity (%)

9.73 10.78 9.46 6.79

CONTD… Loans to Assets = Loans

Total assets

Table 1.5

Ratio March,

2010

March,

2009

March,

2008

March,

2007

Loans to

Assets (%)

46.39 38.48 45.41 51.11

TREND ANALYSIS EPS (Earning Per Share) =

Profit after interest and tax

No. of equity shares

Figure 1.6

March,2010 March,2009 March,2008 March,20070

20

40

60

80

100

120

140124

112

100 100

Trend in EPS(%)

Trend in EPS(%)

CONTD… Trend of Net Profit:

Figure 1.7

March,2010 March,2009 March,2008 March,20070

20

40

60

80

100

120

140

160

180

155

139

125

100

Trend in Net Profit(%)

Trend in Net Profit(%)

CONTD… Trend in Interest Earned

Figure 1.8

March,2010 March,2009 March,2008 March,20070

20

40

60

80

100

120

140

160140 139

120

100

Trend in Interest Earned(%)

Trend in Interest Earned(%)

CONTD… Trend in Interest Expended

Figure 1.9

March,2010 March,2009 March,2008 March,20070

20

40

60

80

100

120

140

160

130139

125

100

Trend in Interest Expended (%)

Trend in Interest Expended (%)

INTRODUCTION TO MUTUAL FUNDS

Mutual Fund is a mechanism for pooling the resources by issuing units to the public & investing funds in accordance with objectives as disclosed in the offer document.

TYPES OF MUTUAL FUNDS

1.Fund according to Maturity Period:

Open-ended

Close-ended

CONTD…2.Schemes according to Investment Objective

Growth / Equity Oriented Scheme

Income / Debt Oriented Scheme

Balanced Fund

Money Market or Liquid Fund

CURRENT POSITION OF MUTUAL FUND INDUSTRY The mutual funds industry posted a decline of 2.3 percent

during the fiscal year ended on June 30,2010 .

After touching the highest level of the year at Rs 236 billion in

September 2009, the industry started declining from this level

and managed to close the year at Rs199 billion, thus,

demonstrating 15.8 percent decline . The money market funds category showed growth of 876.5

percent over the year.

Source: www.amfi.com

CONTD… Open-ended fund size decreased by 4.0

percent to reach Rs168 billion, while the closed-end funds showed an increase of 0.7 percent to reach Rs31 billion.

During June, the size of the Growth funds category stood at Rs39.2 billion, showing a surge of 2.8 percent on M-o-M basis.

Source: www.amfi.com

GROWTH IN ASSETS UNDER MANAGEMENT

Source: www.amfi.com

ASSETS UNDER MANAGEMENT AS ON JUNE30, 2010

(AMOUNT IN CR.)

ASSETS UNDER MANAGEMENT AS ON JUNE 30,2010

Source: www.amfi.com

NatureStructure

Open End Close End Total

Balanced 16540 1356 17896

ELSS 21739 3129 24868

FOF Investing Overseas 2638 - 2638

Gilt 3229 - 3229

GOLD ETF 1939 - 1939

Growth 161850 16350 178200

Income 274647 36868 311515

Liquid/Money Market 71871 - 71871

Other ETF 1135 - 1135

Total 555588 57703 613291

Amount in Rs. Crores

FUTURE OF MUTUAL FUND INDUSTRY

The annual composite rate of growth is expected 13.4% during the rest of the decade.

According to the current growth rate, by year 2010, mutual fund assets will be double.

Source: www.amfi.com

CHAPTER –III RESEARCH METHODOLOGY Title of Study

“Comparative Analysis of Growth

Funds of Selected Companies”

CONTD… Objective of study

To calculate Growth Funds of Selected Companies by calculating these ratios like Standard Deviation, Sharpe, Beta, Treynor, Jenson and Alpha.

To compare these selected Growth Funds on the basis of above mentioned ratios.

To study Investor’s perception about Mutual Funds.

CONTD…Research Methodology for 1st two Objective1. Research Design: – For this study design followed

is Descriptive Research Design

2. Sampling Design:

Steps in Sample Design

a) Universe – For the present study universe is all Asset Management Companies (AMCS) which are operating.

.

CONTD…b) Population – For the study population is all Asset

Management Companies operating with the Growth Funds.

c) Sample Unit – For the study sample unit is one single Asset Management Company.

d) Sample Size – For the study sample size is 10 Asset Management Companies operating with the Growth Fund.

e) Sampling Techniques – For this study sampling technique followed is convenience sampling .

CONTD…Research Methodology for 3rd objective

1. Research Design – For this study design followed is Descriptive Research Design

2. Sampling Design

Steps in Sample Design

a) Universe - For the present study universe is almost all the population of the world as they invest something however small it may be, in some avenue.

CONTD…b)Population – For the study population is Ludhiana

city. The city covered under research is Ludhiana

c)Sample Unit – For the study sample unit is one single investor of the sample.

d) Sample Size – For the study sample size is 100 respondents

e) Sampling Techniques – For the study sampling technique followed convenience sampling .

DATA COLLECTION

Collection of Primary Data

The primary data have been collected from100 respondents taken on sample basis through structured Questionnaire

Collection of Secondary Data

The yield on bank deposit during the period under study i.e. 7%. has been taken as a measure of risk free rate. The period under study is 1 year.

TOOLS OF ANALYSIS

Percentage— the percentage has been calculated while measuring consumer perception towards mutual funds in India.

Charts and Diagram are prepared wherever necessary.

Tools for measuring risk and volatility are taken as Standard Deviation, Sharpe, Jenson , Beta, Alpha, Treynor.

  LIMITATIONS OF STUDY

Sample size was limited to 100 only. The study is limited to investors of Ludhiana

only. Few respondents were not able to understand

some of the terms of questionnaire. Some of persons were not so responsive. Possibility of error in data collection .

Table 4.1Funds PerformanceRank Growth Funds Holding Period Returns (%)

(For 1 Yr.)

1. DSP BR Growth Fund 93.3

2. UTI Growth Fund 60.10

3. ING Growth Fund 55.14

4. IDFC Growth Fund 54.8

5. Religare Growth Fund 50.93

6. HDFC Growth Fund 36.21

7. Birla Growth Fund 35.28

8. Reliance Growth Fund 35.03

9. ICICI Growth Fund 23.92

10. HSBC Growth Fund 16.94

CHAPTER – IV DATA ANALYSIS ANALYSIS OF SECONDARY DATA

Table 4.2 Sharpe MeasureRank Fund Name Results

1. DSP BR Growth Fund 12.2

2. ING Growth Fund 9.11

3. IDFC Growth Fund 8.17

4. Religare Growth Fund 8.12

5. UTI Growth Fund 7.26

6. Birla Growth Fund 6.98

7. HDFC Growth Fund 5.28

8. Reliance Growth Fund 4.60

9. ICICI Growth Fund 1.98

10. HSBC Growth Fund 1.27

Table 4.3 Beta

Rank Fund Name Results

1. IDFC Growth Fund 2.48

2. Religare Growth Fund 2.88

3. ING Growth Fund 3.05

4. DSP BR Growth Fund 3.31

5. Birla Growth Fund 3.33

6. HDFC Growth Fund 3.72

7. Reliance Growth Fund 3.87

8. HSBC Growth Fund 3.93

9. UTI Growth Fund 4.36

10. ICICI Growth Fund 4.70

Table 4.4 Treynor MeasureRank Fund Name Results

1. DSP BR Growth Fund 20.92

2. IDFC Growth Fund 15.49

3. ING Growth Fund 15.09

4. Religare Growth Fund 14.80

5. Birla Growth Fund 12.13

6. UTI Growth Fund 11.82

7. Reliance Growth Fund 7.88

8. HDFC Growth Fund 6.66

9. ICICI Growth Fund 2.52

10. HSBC Growth Fund 1.51

Table 4.5 Standard DeviationRank Fund Name Results

1. HDFC Growth Fund 4.69

2. IDFC Growth Fund 4.71

3. ING Growth Fund 5.05

4. Religare Growth Fund 5.266

5. HSBC Growth Fund 5.269

6. DSP BR Growth Fund 5.656

7. Birla Growth Fund 5.789

8. ICICI Growth Fund 5.98

9. Reliance Growth Fund 6.64

10. UTI Growth Fund 7.09

Table 4.6 Jenson MeasureSr. Fund Name Results

1. IDFC Growth Fund -5.65

2. Religare Growth Fund -7.69

3. ING Growth Fund -8.53

4. DSP Growth Fund -9.86

5. Birla Growth Fund -9.93

6. HDFC Growth Fund -11.92

7. Reliance Growth Fund -12.72

8. HSBC Growth Fund -12.99

9. UTI Growth Fund -15.17

10. ICICI Growth Fund -16.91

Table 4.7 Alpha (α)Rank Fund Name Results

1. DSP BR Growth Fund 86.22

2. UTI Growth Fund 73.72

3. ING Growth Fund 61.63

4. Religare Growth Fund 57.45

5. Birla Growth Fund 57.34

6. IDFC Growth Fund 51.19

7. Reliance Growth Fund 50.31

8. HDFC Growth Fund 43.75

9. ICICI Growth Fund 35.78

10. HSBC Growth Fund 25.93

ANALYSIS OF PRIMARY DATA Figure 4.8 Class wise Distribution of Respondents

(N=100)

Business class Service class Professionals others0

10

20

30

40

50

60

14

50

14

22

No. of Respondents (%)

No. of Respondents (%)

Bank Deposits Mutual Funds LIC Equity Shares NSCRank 1 2 3 4 5

0

50

100

150

200

250

300

350

400

187

245

310

345 352

Figure 4.9 Preference of Investor towards various Financial Assets (N=100)

.

business(%) servicemen(%) professional (%) others(%)0

10

20

30

40

50

60

70

80

90

43

33

57

77

7

4036

5

29

15

75

21

12

0

13

less than 1 yearbetween 1-3 yearsbetween 3-5 yearsabove 5 years

FIGURE 4.10 EXPERIENCE OF INVESTOR’S IN MUTUAL FUND (N=100)

FIGURE 4.11 PREFERENCE OF INVESTOR REGARDING OPEN & CLOSE ENDED MUTUAL FUND(N=100)

business(%) servicemen(%) professional (%) others(%)0

10

20

30

40

50

60

70

80

90

79

68

57

77

21

32

43

23

open -endedclose-ended

regular income growth liquidity speculation tax-saving0

10

20

30

40

50

60

70

7

36

0

14

43

20

50

0 0

30

14

58

14

0

14

45

23

18

14

0

business(%)servicemen(%)professional (%)others(%)

FIGURE 4.12 OBJECTIVE OF INVESTMENT IN MUTUAL FUND (N=100)

.

business(%) servicemen(%) professional (%) others(%)0

10

20

30

40

50

60

70

80

90

43

50

29

77

29

42

71

1414

40 0

14

40

9

Absolute returns of fundsFund return vis-vis market index systemFund return vis-vis return on similar schemeRisk adjusted return of the schemes

FIGURE 4.13 CRITERIA FOR PERFORMANCE EVALUATION (N=100)

business(%) servicemen(%) professional (%) others(%)0

10

20

30

40

50

60

70

29

23

7

32

21

13

29

23

50

64 64

45

procedural complexitiesservice dissatisfactionawareness lacking

FIGURE 4.14 MAJOR CAUSES OF DEFICIENCES IN WORKING OF MUTUAL FUND (N=100)

.

business(%) servicemen(%) professional (%) others(%)0

10

20

30

40

50

60

70

80

90

100

21

43

7

18

79

57

93

82

yesno

FIGURE 4.15(A) INVESTOR’S VIEW REGARDING USAGE OF TECHNICAL TOOLS (N=100)

Business(%) Service(%) Professional(%) Others(%)0

5

10

15

20

25

0

10

0 00

8

0 0

21

12

7

14

0

12

0

4

Treynor measureSharpe measureBetaAlpha

FIGURE 4.15(B) CHOICE OF INVESTOR REGARDING USAGE OF TECHNICAL TOOLS (N=100)

CHAPTER- V FINDING & SUGGESTIONS

In case of Secondary Study DSP BR Growth Fund is being Ranked no. 1

in case of Treynor measure, Sharpe Measure, Alpha and has maximum holding period return of 93.3%

HSBC Growth Fund has underperformed as comparison to other Funds as it is ranked to be last among 10 AMCS in terms of Treynor measure, Sharpe measure, Alpha and has minimum holding period return of 16.94%.

CONTD…In case of Primary Study

Investors commits following mistake while investing in stock market:

Over enthusiastic for making quick money Ignoring the strategy of diversification Not spending enough time in analyzing industries

growth potential Always insisting for short term investment No attempt for well thought – out investment plan

SUGGESTIONS Try to save as much as . Plan the investment over a longer period of

time Do not invest in highly volatile funds Do collect and analyze enough information

about the funds one’s plan to invest in Diversification of investment is must Periodically keep reviewing objectives of

investment Maintain proper record of the transaction

THANK YOU