icici mf and uti mf comparison

8/2/2019 Icici Mf and Uti Mf Comparison

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COMPARATIVE ANALYSIS OF ICICI MF AND UTI MF

In partial fulfillment of the requirements forMaster of Management Studies (MMS)

Submitted By

ASOK.K.A

MMS - FINANCE

ROLL NO: 1135

Batch of 2010-12

Project Guide

ORIENTAL INSTITUTE OF MANAGEMENT, PLOT NO -149

Sector 12, Navi Mumbai - 400703


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ACKNOWLEDGEMENT


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CERTIFICATE

This is to certify that Mr. Asok.K.A Roll no 1135 is a full time bonafide student of

Oriental Institute of Management and pursuing Masters Of Management Studies(MMS). The project report Title isCOMPARATIVE ANALYSIS OF ICICI MF

AND UTI MF completed by him/her under the guidance of Mrs. , in the partial

fulfillment of the requirements for the award of the degree of Master in

Management Studies of Mumbai University is an original work done.

________________________ ____________________

(Signature of Director) (Signature of Project

Guide)

Oriental Institute of Management

Vashi , Navi Mumbai 400703


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DECLARATION


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INDEX

Sr. No. Contents Page no.

1 Introduction 6

2 Company Profile 11

3 Objectives Of The Study 21

4 Research Methodology 22

5 Analysis of Data 23

6 Mutual Fund Risk Analysis 54

7 Conclusion & Suggestions 58

8 Limitation Of The Study 60

9 Reference 61


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INTRODUCTION

MUTUAL FUND

A mutual fund is a professionally managed type of collective investment scheme

that pools money from many investors and invests it in stocks, bonds, short-termmoney market instruments and other securities. Mutual funds have a fund managerwho invests the money on behalf of the investors by buying / selling stocks, bondsetc. Currently, the worldwide value of all mutual funds totals more than $US 26trillion.There are various investment avenues available to an investor such as real estate,bank deposits, post office deposits, shares, debentures, bonds etc. A mutual fund isone more type of Investment Avenue available to investors. There are manyreasons why investors prefer mutual funds. Buying shares directly from the market

is one way of investing.

But this requires spending time to find out the performance of the company whoseshare is being purchased, understanding the future business prospects of thecompany, finding out the track record of the promoters and the dividend, bonusissue history of the company etc. An informed investor needs to do research beforeinvesting. However, many investors find it cumbersome and time consuming topore over so much of information, get access to so much of details before investingin the shares. Investors therefore prefer the mutual fund route.They invest in a mutual fund scheme which in turn takes the responsibility of

investing in stocks and shares after due analysis and research. The investor neednot bother with researching hundreds of stocks. It leaves it to the mutual fund andits professional fund management team. Another reasonWhy investors prefer mutual funds is because mutual funds offerdiversification. An investors money is invested by the mutual fund in a variety ofshares, bonds and other securities thus diversifying the investors portfolio across

different companies and sectors.

This diversification helps in reducing the overall risk of the portfolio. It is also less

expensive to invest in a mutual fund since the minimum investment amount inmutual fund units isfairly low (Rs. 500 or so). With Rs. 500 an investor may be able to buy only a fewstocks and not get the desired diversification. These are some of the reasons whymutual funds have gained in popularity over the years. Indians have beentraditionally savers and invested money in traditional savings instruments such asbank deposits. Against this background, if we 6 look at approximately Rs. 7 lakh


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crores1 which Indian Mutual Funds are managing, then it is no mean anachievement. A country traditionally putting money in safe, risk-free investmentslike Bank FDs, Post Office and Life Insurance, has started to invest in stocks,bonds and sharesthanks to the mutual fund industry. However, there is still a lotto be done. The Rs. 7 Lakh crores stated above includes investments by thecorporate sector as well. Going by various reports, not more than 5% of householdsavings are channelized into the markets, either directly or through the mutual fundroute.

Not all parts of the country are contributing equally into the mutual fund corpus. 8cities account for over 60% of the total assets under management in mutual funds.These are issues which need to be addressed jointly by all concerned with themutual fund industry. Market dynamics are making industry players to look atsmaller cities to increase penetration. Competition is ensuring that costs incurred in

managing the funds are kept low and fund houses are trying to give more value formoney by increasing operational efficiencies and cutting expenses.As of today there are around 40 Mutual Funds in the country. Together they offeraround 1051 schemes2 to the investor. Many more mutual funds are expected toenter India in the next few years. All these developments will lead to far moreparticipation by the retail investor and ample of job opportunities for youngIndians in the mutual fund industry. This module is designed to meet therequirements of both the investor as well as the industry professionals, mainlythose proposing to enter the mutual fund industry and therefore require afoundation in the subject.Investors need to understand the nuances of mutual funds, the workings of variousschemes before they invest, since their money is being invested in risky assets likestocks/ bonds (bonds also carry risk). The language of the module is kept simpleand the explanation is peppered with concept clarifiers and examples. Let us nowtry and understand the characteristics of mutual funds in India and the differenttypes of mutual fund schemes available in the market.

In this project analyze the performance of ICICI MF and UTI MF, and I selected

equity fund and balanced fund of above companies.

EQUITY FUND

A mutual fund that invests principally in stocks. It can be actively or passively

(index fund) managed, also known as a "stock fund".


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Stock mutual funds are principally categorized according to company size,

the investment style of the holdings in the portfolio and geography: Size is

determined by a company's market capitalization, while the investment style,

reflected in the fund's stock holdings, is also used to categorize equity mutual

funds. Stock funds are also categorized by whether they are domestic (U.S.) orinternational. These can be broad market, regional or single-country funds.

There are so-called "specialty" stock funds that target business sectors such as

healthcare, commodities and real estate.

Equity mutual funds are also known as stock mutual funds. Equity mutual funds

invest pooled amounts of money in the stocks of public companies. Stocks

represent part ownership, or equity, in companies, and the aim of stock ownership

is to see the value of the companies increase over time. Stocks are often

categorized by their market capitalization (or caps), and can be classified in three

basic sizes: small, medium, and large. Many mutual funds invest primarily in

companies of one of these sizes and are thus classified as large-cap, mid-cap or

small-cap funds.

Equity fund managers employ different styles of stock picking when they make

investment decisions for their portfolios. Some fund managers use a value

approach to stocks, searching for stocks that are undervalued when compared toother similar companies. Another approach to picking is to look primarily at

growth, trying to find stocks that are growing faster than their competitors, or the

market as a whole. Some managers buy both kinds of stocks, building a portfolio

of both growth and value stocks. Since equity funds invest in stocks, they have the

potential to generate more returns. On the other hand they carry greater risks too.

Equity funds can be classified into diversified equity funds and sectoral equity

funds.

How to Select an Equity Fund

Compare a fund with its peers:

One of the basic fundamental of benchmarking is to evaluate funds with in the

same category. For example, if you are evaluating the performance of a thematic


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fund, say IT based fund, then you should compare its performance with another

similar IT based fund. Comparing it with banking sector fund for example will not

give the correct picture. Comparing a fund over stock market cycle (boom and

bust) will give investors a good idea about how the fund has fared.

Compare returns against those of the benchmark index:

Every fund mentions a benchmark index in the Offer Document. It can be BSE

100, BSE 200, Nifty or any other index. The benchmark index serves as a

guidepost for both the fund manager and the investor. Compare how the fund has

fared against the benchmark index over a period of 3-5 years. The funds that have

outperformed their benchmark indices during stock market volatility must be given

a close look.

Compare against the fund's own performance:

Apart from comparing a fund with its peers and benchmark index, investors should

evaluate its historical performance. By evaluating a fund against its own historical

performance, you can get an idea about consistent performers.

BALANCED FUND

Balanced fund is also known as hybrid fund. It is a type of mutual fund that buys acombination of common stock, preferred stock, bonds, and short-term bonds, toprovide both income and capital appreciation while avoiding excessive risk.

Balanced funds provide investor with an option of single mutual fund thatcombines both growth and income objectives, by investing in both stocks (forgrowth) and bonds (for income). Such diversified holdings ensure that these fundswill manage downturns in the stock market without too much of a loss. But on theflip side, balanced funds will usually increase less than an all-stock fund during a

bullmarket.

Advantages of Balanced Fund

Generally, balanced funds maintain a 60:40 equity debt ratio. This meansthat 60% of their total investment is in equity and the balance 40% in debtand cash equivalents. Balance funds combine the power of equities (shares)


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and the stability of debt market instruments (fixed return investments likebonds) and provide both income and capital appreciation while avoidingexcessive risk.

Balanced funds continuously rebalance their portfolios to ensure that thebroad asset allocation is not disturbed. Therefore, the profits earned from thestock markets are encashed and invested in low risk instruments. This helpsthe investor in maintaining the appropriate asset mix, without getting intothe hassles of rebalancing the portfolio on their own.


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COMPANY PROFILE

ICICI AMC

ICICI Prudential Asset Management Company Ltd. is a joint venture between

ICICI Bank, Indias second largest commercial bank & a well-known and trustedname in the financial services in India, & Prudential Plc, one of the United

Kingdoms largest players in the financial services sectors.

In a span of over 18 years since inception and just over 13 years of the Joint

Venture, the company has forged a position of preeminence as one of the largest

Asset Management Companys in the country, contributing significantly towards

the growth of the Indian mutual fund industry.

The company manages significant Mutual Fund Assets under Management

(AUM), in addition to our Portfolio Management Services (PMS) and International

Advisory Mandates for clients across international markets in asset classes like

Debt, Equity and Real Estate with primary focus on risk adjusted returns.

As an Asset Management Company, we have over 18 years of experience and are

currently managing a comprehensive range of schemes of more than 46 Mutual

fund schemes and a wide range of PMS Products for our investors spread acrossthe country. We service this investor base with our own branch network of around

168 branches and a distribution reach of over 42,000 channel partners.

ManagementMr.Nimesh Shah- Managing Director & Chief Executive Officer

Nimesh Shah joined ICICI Prudential AMC as its Managing Director in July 2007.

Nimesh has completed his Chartered Accountancy. Prior to joining ICICIPrudential AMC, Nimesh was Senior General Manager at ICICI Bank and has over18 years experience in banking and financial services. At ICICI Group, he hashandled many responsibilities including project finance, corporate banking andinternational banking.
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He was associated with one of the first batches of senior managers selected to leadthe foray of ICICI Bank into the international arena. He led ICICI Banks forayinto the Middle-Eastern region and Africa.

Mr. B Ramakrishna - Executive Vice President

Mr. Raghav Iyengar - National HeadSales and distributionMr. Kalyan Prasath - Head - Information TechnologyMr. Hemant Agarwal - Head - OperationsMr. Ashish Kakkar - Head - Human ResourcesMr. Aashish Somaiyaa - HeadRetail BusinessFund ManagementMr. S. Naren - Chief Investment Officer - EquityMr. Chaitanya Pande - HeadFixed IncomeBoard of Directors: Asset Management CompanyMs. Chanda Kochhar - Chairperson

Mr. Barry StoweMr. Suresh KumarMr. Vijay ThackerMr. Dileep C. ChoksiMr. N.S. KannanMr. Nimesh ShahMr. C. R. MuralidharanDirectors of the Trustee CompanyMr. M. S. Parthasarthy

Mr. M. N. GopinathMr. Keki Bomi DadisethMr. Vinod DhallMr. Sandeep Batra

Awards and Recognition

ICICI Prudential AMC has constantly been on the forefront of innovation and has

introduced products aligned to meet customer needs leading to a well-diversified

product portfolio. As acknowledgment of our efforts , we have received valuedrecognition from various organizations of international repute.

Some of the prominent awards and recognition are:
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Bloomberg UTV Financial Leadership Awards 2011

ICICI Prudential AMC received the coveted UTV Bloomberg FinancialLeadership Award 2011 for Best Contribution in Investor Education &Category Enhancement of the Year in the mutual fund category.

Mr. Nimesh Shah , Managing Director, ICICI Prudential AMC received thisprestigious accolade from Honorable Finance Minister, Shri PranabMukherjee.

Morning Star Mutual Fund Awards2011 India Debt Fund House Award2011

Business World Mutual Fund Awards 2010

ICICI Prudential Discovery Fund adjudged Emerging Leader (Based on past 3-year SIP performance)

ICICI Prudential Discovery Fund - Insti.1 adjudged Best Equity FundMidand Small Cap for the year 2010

Mr Sankaran Naren adjudged Smartest Fund Manager (ICICI PrudentialDiscovery Fund) for the year 2010

Mr Sankaran Naren adjudged Best Equity Fund Manager (ICICI PrudentialDiscovery Fund ) for the year 2010

NDTV Profit Mutual Fund Awards 2010 ICICI Prudential Discovery Fund - Category Emerging Leader (Based on

past 3-year SIP performance)

Lipper Fund Awards 2010 India

ICICI Prudential Dynamic Plan-Growth - Best Fund over 3 Years (MixedAsset INR flexible)

ICICI Prudential Gilt Fund Investment Pl-PF Opt-Gth - Best Fund over 3 & 5Years (Bond Indian RupeeGovernment)


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UTI AMC

WHO WE ARE

UTI Mutual Funds aims to deliver consistent and stable returns in the medium to

long term. With a fairly lower volatility of fund returns, compared to the broadmarket, we offer a balanced and well -diversified portfolio based on rigorous in-

house research.

OUR PEOPLE

Our product portfolio is managed by dedicated management teams to create

optimum balance and results. Our key people help us serve you better and grow

your money.

VISIONTo be the most preferred Mutual Fund

MISSIONTo make UTI Mutual Fund: The most trusted brand that is admired by all stakeholders The largest and most efficient wealth manager with global presence The best-in-class customer service provider The most preferred employer The most innovative and best wealth creator A socially responsible organisation known for best corporate governance

GENESIS

January 14, 2003 is when UTI Mutual Fund started to pave its path following thevision of UTI Asset Management Co. Ltd. (UTIAMC), which was appointed byUTI Trustee Co, Pvt. Ltd. for managing the schemes of UTI Mutual Fund and theschemes transferred/migrated from the erstwhile Unit Trust of India.

UTIAMC provides professionally managed back office support for all businessservices of UTI Mutual Fund in accordance with the provisions of the InvestmentManagement Agreement, the Trust Deed, the SEBI (Mutual Funds) Regulationsand the objectives of the schemes. State-of-the-art systems and communicationsare in place to ensure a seamless flow across the various activities undertaken byUTIMF.


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Since February 3, 2004, UTIAMC is also a registered portfolio manager under theSEBI (Portfolio Managers) Regulations, 1993 for undertaking portfoliomanagement services. UTIAMC also acts as the manager and marketer to offshorefunds through its 100 % subsidiary, UTI International Limited, registered inGuernsey, Channel Islands.

ASSET UNDER MANAGEMENT

UTIAMC presently manages a corpus of over Rs 5781734.00 lakhs as on

December 31st 2011(source: www.amfiindia.com). UTI Mutual Fund has a track

record of managing a variety of schemes catering to the needs of every class of

citizens. It has a nationwide network consisting 148 UTI Financial Centres (UFCs)

and UTI International offices in London, Dubai and Bahrain.

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

been fully empowered to manage funds with greater efficiency and accountability

in the sole interest of the unit holders. The fund managers are ably supported by a

strong in-house securities research department. To ensure investors interests, a

risk management department is also in operation.

RELIABILITY

UTIMF has consistently reset and upgraded transparency standards. All the

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

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

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

fully compliant with SEBI regulations.

INVESTMENT PHILOSOPHY

UTI Mutual Funds investment philosophy is to deliver consistent and stablereturns in the medium to long term with a fairly lower volatility of fund returns

compared to the broad market. It believes in having a balanced and well-diversified

portfolio for all the funds and a rigorous in-house research based approach to all its

investments. It is committed to adopt and maintain good fund management

practices and a process based investment management.


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UTI Mutual Fund follows an investment approach of giving as equal an

importance to asset allocation and sectoral allocation, as is given to security

selection while managing any fund. It combines top-down and bottom-up

approaches to enable the portfolios/funds to adapt to different market conditions so

as to prevent missing an investment opportunity.

In terms of its funds performance, UTI Mutual fund aims to remain consistently in

the top quartile vis--vis the funds in the peer group.

OUR ACHIEVEMENTS AND GROWTH STORY

UTI MF has been recognized for its achievements, from innovative funds and

exemplary people to its commitment towards dedicated customer service.

28 Feb 2012UTI Mutual Fund Wins 8 ICRA Mutual Fund Awards 2012 - Awarded Star Fund House Of The

YearDEBT

07 Feb 2012UTI Mutual Fund has been declared as a winner for Customer & Brand Loyalty in the

Mutual Fund Sector

28 Nov 2011UTI Mahila Unit Scheme has been ranked as the Best Fund over a

period of five years and has won Lipper Fund Awards 2011- India under the

category of Mixed Asset INR Conservative

27 Nov 2011UTI MF has won the Financial Leadership Awards 2011 for MostInnovative Investor Education Initiative Swatantra

26 Nov 2011Mr Amandeep Chopra and Mr. Manish Joshi have been adjudicated as

the Best Debt Fund Managers of the Year 2010

25 Nov 2011UTI CCP Advantage Fund has won the Business World - Best Mutual

Fund Awards

24 Nov 2011Second time in a row, UTI Mutual Fund has been awarded the Most

Investor-Friendly Fund House of the Year

23 Nov 2011Mr Jaideep Bhattacharya, Chief Marketing Officer, UTI AMCs

CMO has won MYKM Stars of Industry Youth Icon Award


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22 Nov 2011UTI Dividend Yield Fund has been adjudged the Best Large Cap

Fund by Morningstar Fund Awards (India) -2011. Source

21 Nov 2011UTI AMC has won the Golden Peacock Innovation Award 2011 for

its Investor Education initiative Swatantra20 Nov 2011UTI AMC has won the Customer and Brand Loyalty Award 2011 for

its Investor Education initiative Swatantra.

19 Nov 2011UTI MF wins 2 CNBC TV 18- CRISIL Mutual Funds Awards 2010

18 Nov 2011UTI Mutual Fund wins 7 ICRA Mutual Funds Awards 2010

17 Nov 2011UTI Mutual Fund has won three International Best of the Best

Awards-2010 from Asia Asset Management

16 Nov 2011Harsha Upadhyaya has received an Award from Outlook Money

Awards -2010 as the Best Fund Manager (Equity)RunnerUp

15 Nov 2011UTI MF wins CNBC TV18-CRISIL Award

14 Nov 2011UTI MF wins CNBC TV18-CRISIL Award

13 Nov 2011Lipper Fund Awards09-UTI Mahila Unit-5 yrs

12 Nov 2011Lipper Fund Awards09-UTI Mahila Unit-3 yrs

11 Nov 2011UTI MF sweeps ICRA mutual fund Award 2009

10 Nov 2011Loyalty Awards - 2009

09 Nov 2011UTI MF wins the Best Debt Fund House Award

08 Nov 2011UTI AMC gets 3 International Awards

07 Nov 2011infrastructure_fund

06 Nov 2011cnbcaward_2007

04 Sep 2011UTI Nifty Index Fund wins Gold at ICRA Online

03 Sep 2011CNBC India Mutual Fund of the Year Award


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03 Sep 2011UTI Dynamic Equity Fund wins Silver at ICRA Online

02 Sep 2011UTI Growth Value Fund has been ranked by CRISIL

02 Sep 2011CNBC-TV18-BNP Par-ibas Mutual Fund of the year Award

01 Sep 2011CNBC-TV18-BNP Par-ibas Mutual Fund of the year Award 2006

01 Sep 2011Lipper Fund Awards

31 Aug 2011ICRA online Mutual Fund Award: UTI NIFTY INDEX FUND won

the award for the year 2004

TRUSTEES

Shri Janki Ballabh,Chairman, Former Chairman, SBIFlat No. 605, Versova VinayakCo-op. Hsg. Soc., HSG Plot No.8, Near Versova TelephoneExchange, Versova, Andheri (W),Mumbai 400 053

Shri S P OswalChairman & Managing Director-Vardhman Textiles Ltd.Auro Mirra Bhawan, 2722,Gurdev Nagar, Pakhowal Road,Ludhiana.

Shri S RaviSenior Partner,Ravi Rajan & Co. Chartered AccountantsD-218, Saket,New Delhi - 110 017

Dr. P G ApteDirector, Indian Institute of Management,

Bangalore,415, IIMB Campus,Bannerghatta Road,Bangalore - 560 076

Shri Ashok K KiniFlat No. B-202, Mantri Pride


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Apartment, 1st Cross MountainRoad, Jayanagar, 1st Block,Bangalore560011

Prof P V Ramana

Chairman, ITM Business School, KhargharBungalow No 12, Gulab View,Near Chembur,Mumbai - 400 071

BOARD OF DIRECTORS

P. R. KHANNA MR. JAMES SELLERS RIEPE MR.FLEMMING MADSEN MR.SANCHIT JAIN MR.PRADEEP GUPTA MR.P.N. VENKATACHALAM

SPONSORS

We are sponsored by three leading public sector banksthe Bank of Baroda,

Punjab National Bank and the State Bank of Indiaand the Life Insurance

Corporation of India (LIC), the largest public financial investment institution and

life insurer in India.

BANK OF BARODASince inception, Bank of Baroda has always maintained its practice of sound,value-based banking to emerge as one of the premier public sector banks in thecountry today. It has a track record of uninterrupted profits since inception in 1908.The financial strength of the bank and its long tradition of efficient customerservice are drawn substantially from the extensive reach of its 3100-strong branchnetwork covering almost every state and union territory in the country. It is also

one of the few Indian banks with a formidable presence overseas with 48 brancheswith the total branch network tally standing at 3148 as on 31.03.2010.

LIFE INSURANCE CORPORATION OF INDIALife Insurance Corporation of India (LIC) is amongst the largest insurancecompanies in the world, with 2048 branches and with a fund size of Rs.9,99,517.59 crore.


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PUNJAB NATIONAL BANKPunjab National Bank is a commercial bank with the main objective being thefacilitation of acquisition and transfer of the undertaking of certain bankingcompanies, with regard to their size, resources coverage and organization. They doso in order to meet progressively and serve the needs of the development of theeconomy and to promote the welfare of the people of India.

As on 31.03.2010, Punjab National Bank had 4997 domestic offices including 46extension counters, 5 foreign branches and a deposit size of Rs. 2,49,330 crore.

STATE BANK OF INDIAThe State Bank of India is the largest public sector bank in India with 12,496branches in India and 142 overseas offices in 32 countries as on 31.03.2010. Inaddition to this, SBI also has 22 subsidiaries.

The sponsors are neither responsible nor liable for any loss resulting from theoperation of the scheme beyond the contribution of Rs.10,000/- made by themtowards setting up the Mutual Fund.

FUND MANAGERS

MR.ANOOP BHASKAR MR.AMANDEEP CHOPRA MR.SANJAY RAMDAS DONGRE MR.PUNEET PAL MS.SWATI KULKARNI MS.SHILPITA GUHA MR.LALIT NAMBIAR MR.V.SRIVATSA MR.ARUN KHURANA MR.AJAY TYAGI MR.KAUSHIK BASU MR.RANJAN KUMAR BISWAL MR.SACHIN DINESH TRIVEDI MR.ARPIT KAPOOR


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OBJECTIVES OF STUDY

The study the concept of schemes (mutual fund)

To study the procedure for analyzing the volatility of fund

To study the performance of ICICI MF & UTI mutual funds selected schemes

and their NAV rate as well as risk ratio of those schemes

Study explains about the various funds performance of ICICI MF & UTI MF.

Here selected EQUITY FUND AND BALANCED FUND of both companies, and

analyze and compare the performance as well as return of selected funds of above

companies in the current scenario


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RESEARCH METHODOLOGY

Sources of Data:

a)Primary Data:-

This research is solely based on primary research done by means of questionnaires

targeted to respondents who primarily belong to the business and service sector.

We fill up this questioner mostly who are the client of ICICI AMC Ltd. & UTI

AMC Ltd

b)Secondary Data

Visiting site of ICICI mutual fund & UTI mutual fund, NAV rate, leaflets,

broachers of company; this study is highly dependent on the secondary data for

various facts and figures.


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DATA ANALYSIS

Two funds are selected here to compare the performance of UTI Mutual fund and

ICICI Mutual fund, funds are

Equity funds Balanced funds

EQUITY FUNDS

A mutual fund that invests principally in stocks. It can be actively or passively

(index fund) managed, also known as a "stock fund. Stock mutual funds

are principally categorized according to company size, the investment style of the

holdings in the portfolio and geography. Size is determined by a companys market

capitalization, whiles the investment style, reflected in the fund's stock holdings,

and is also used to categorize equity mutual funds. Stock funds are also categorized

by whether they are domestic (U.S.) or international. These can be broad market,

regional or single-country funds. There are so-called "specialty" stock funds that

target business sectors such as healthcare, commodities and real estate.

Here select three equity funds of ICICI mutual funds, they are

a. ICICI Prudential Focused Bluechip Equity Fundb. ICICI Prudential FMCG Fundc. ICICI Prudential Top 200 Fund
http://www.icicipruamc.com/OurFunds/FundDetails.aspx?FundID=22http://www.icicipruamc.com/OurFunds/FundDetails.aspx?FundID=22


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a. ICICIPrudential Focused Bluechip Equity FundDiversification is needed to reduce risk, but too much diversification can result indiminishing returns. Therefore, it makes sense to strike a balance betweenminimum risk and maximum returns, which is what a focused fund does. Byinvesting in the largest companies because of an outlook that they will be the moststable through any situation, it strives to grow your wealth in the long run.

ICICI Prudential Focused Bluechip Equity Fund, an open-ended equity scheme,

aims to maximize long-term total returns, from a focused and optimally diversified

portfolio that is invested in equity and equity related securities of about 20

companies belonging to the large cap domain. This strategy has the potential to

generate positive returns from being overweight on certain high conviction stockpicks.

Investment PhilosophyThis fund invests in about 20 equity and equity related securities, and seeks togenerate long term capital appreciation. The portfolio is mandated to select stocksfrom among the Top 200 stocks in terms of market capitalization on the NSE. Thisfund adopts a bottom-up approach to Stock Selection and the fund manager has theflexibility to choose between stocks across all themes, sectors and investmentstyles.

Investor ProfileThis fund is ideal for -

Investors looking at the comfort of investments in large-cap companies. Investors seeking the benefits of concentrated bets on the stock ideas by way of

potentially higher returns.

Key Benefits

Higher Liquidity due to broader investor participation Relatively lower volatility compared to mid and small cap stocks Large caps generally recover faster than small and mid cap stocks Benefit of optimal diversification strategy targeted at long term capital

appreciation


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Schemes Latest NAV (Rs.)

ICICI prudential focused bluechip

equity fund-Inst. Growth

16.97 (21/march/2012)

ICICI prudential focused bluechipequity fund- Retail Dividend

15.68(21/march/2012)

ICICI prudential focused bluechipequity fund- Retail Growth

16.43 (21/march/2012)

Key Features

Type Open ended equity scheme

Options Growth & dividend & institutional plan(Growth)

Default option GrowthApplication amount Retail: Rs.5,000 (plus in multiples of

Re.1) Institutional I : Rs. 10 Crores(plus in multiples of Re.1)

Min. Additional Investment Retail :Rs.1000/- (plus in multiples ofRe.1/-) Institutional:Rs.10,000/-(plus inmultiples of Rs.1)

Entry load Nil. Upfront commission shall be paiddirectly by the investor to the AMFIregistered Distributors based on theinvestors' assessment of various factors

including the service rendered by thedistributor.

Exit load (w.e.f. 24-08-09): (a) If the amount,sought to be redeemed or switched out,is invested for a period of upto oneyears1%; (b) If the amount, sought tobe redeemed or switched out, is invested


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for a period of more than one year fromthe date of allotment - Nil.

Redemption cheques issued Generally Within 3 business day forSpecified RBI locations and additional 3

Business Days for Non-RBI locations.Minimum redemption amount Rs. 500

Systematic investment plan Retail Option : (Monthly) MinimumRs.1,000 + 5 post - dated cheques for aminimum of Rs.1000 each Quarterly :Minimum Rs. 5000 + 4 post - datedcheques of Rs. 5000 each Exit Load(w.e.f. 24-8-09): (a) If theamount,sought to be redeemed orswitched out, is invested for a period of

upto two years1%; (b) If the amount,sought to be redeemed or switched out,is invested for a period of more than twoyearsNil.

Systematic withdrawal plan Retail Option: Rs.500 and in multiplesof Re. 1/- provided minimum balanceshould not fall below Rs.5000/-.

Net asset value periodicity Calculated & Declared on everyBusiness day

Tax benefits Capital Gains Tax and Indexationbenefits.


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b. ICICI Prudential FMCG FundThe Indian FMCG sector is the 4th largest in the economy and is characterized bya strong presence of MNC's, well established distribution networks, fiercecompetition and low operational costs. All these factors, the country's growthpotential and the increasing disposable income of consumers are contributingtowards making it a lucrative opportunity for investment.Sector funds enable spiking a diversified portfolio with sharper sectoral focus;

thereby enhancing the investor's potential to gain from superior performance in afocused area.ICICI Prudential FMCG Fund is an open-ended equity fund that invests incompanies, which will benefit from increasing consumption in the country. It is adiversified sector fund that holds scrips across sub-sectors like food, retaildistribution, apparel and consumables.

Investment PhilosophyThis fund seeks to optimize the risk-adjusted return by a 'Bottom-up' strategy, toidentify and pick stocks in the FMCG Sector. The portfolio comprises of a smallernumber of scrips to reflect the prospects of the FMCG sector and also holds stocksacross various sub-sectors, within the broad definition of the sector. A smallerallocation to other sectors is permitted purely for defensive considerations.

Key Benefits It allows an investor to allocate his equity assets in accordance to his sectoral

preference and implement his views on the sector. Provides an option to diversify in terms of style, into a sharp, focused, thematic

fund.


ICICI prudential FMCG Fund-dividend

45.10 (21/3/2012)

ICICI prudential FMCG Fund-Growth

83.45 (21/3/2012)


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Key Features

Type Open ended FMCH sectoral fundOptions Growth and dividend optionDividend option Dividend reinvestment

Entry load Nil. Upfront commission shall be paiddirectly by the investor to the AMFIregistered Distributors based on theinvestors' assessment of various factorsincluding the service rendered by thedistributor.

Exit load w.e.f. 24-08-09): (a) If the amount,sought to be redeemed or switched out,is invested for a period of upto one

years1%; (b) If the amount, sought tobe redeemed or switched out, is investedfor a period of more than one year fromthe date of allotmentNil

Redemption cheques issued Generally within 1 Business Day forspecified RBI locations and anadditional 3 Business Days for Non RBIlocations.

Systematic investment plan Monthly: Minimum Rs.1,000 + 5 post -dated cheques for a minimum ofRs.1000 each Quarterly : Minimum Rs.5000 + 4 post - dated cheques of Rs.5000 each Exit Load (w.e.f. 24-8-09):(a) If the amount,sought to be redeemedor switched out, is invested for a periodof upto two years 1%; (b) If theamount, sought to be redeemed orswitched out, is invested for a period ofmore than two yearsNil.

Systematic withdrawal plan Minimum of Rs.500 and multiples ofRe.1/-

Net asset value periodicity Calculated & Declared on everyBusiness day

Tax Benefits Capital Gains Tax and Indexationbenefits.


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C. ICICI Prudential Top 200 Fund

A multitude of choice could make it difficult to settle on anything. What looksexcellent today may not be that fruitful tomorrow, and what seems to be hopelesstoday could be terrific tomorrow.

In this situation, after understanding the fundamentals of various opportunities, thesmartest move would be to focus small amounts across everything that seemspromising. As a cautious investor, you would do well to expose yourself to the ideaof capturing market opportunities and seeking out the optimum sectors to invest in.ICICI Prudential Top 200 Fund, an open-ended diversified equity fund allows youto capture growth opportunities by constantly being on the lookout for out the bestsectors to invest in across multiple regions in the market.

Investment PhilosophyThis fund seeks to optimize the risk-adjusted return by building a portfolio of largeand mid-cap stocks across select sectors. It follows a blend of top-down macroresearch to identify growth sectors and bottom-up fundamental research to identifystocks. It is a multi-sector fund focused on investing in carefully selected stocksoffering best possible risk-adjusted return across select sectors with potentialgrowth opportunities.

Key Benefits

It gives you a core large-cap portfolio with limited exposure to mid-cap stocks It gives you an edge by capturing the best sectoral opportunities in the market


ICICI prudential top 200 fund- Dividend 15.88 (21/03/2012)

ICICI prudential top 200 fund- Growth 106.99 (21/03/2012

ICICI prudential top 200 fund-Institutional plan option- 1

30.28 (21/03/2012)

Key Features
http://www.icicipruamc.com/OurFunds/FundDetails.aspx?FundID=22http://www.icicipruamc.com/OurFunds/FundDetails.aspx?FundID=22http://www.icicipruamc.com/OurFunds/FundDetails.aspx?FundID=22


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Type Open ended growth fundOptions Growth and dividend option

Default option Dividend reinvestmentEntry load Nil. Upfront commission shall be paid

directly by the investor to the AMFIregistered Distributors based on theinvestors' assessment of various factorsincluding the service rendered by thedistributor

Exit load (w.e.f. 24-08-09): (a) If the amount,sought to be redeemed or switched out,is invested for a period of upto oneyears1%; (b) If the amount, sought tobe redeemed or switched out, is invested

for a period of more than one year fromthe date of allotment - Nil.

Redemption Cheques Issued Generally Within 3 business day forSpecified RBI locations and additional 3Business Days for Non-RBI locations.

Systematic Investment Plan Monthly : Minimum Rs.1000 + 5 postdated cheques for a min of Rs.1000/-each. Quarterly : Minimum Rs. 5000 + 4

post - dated cheques of Rs. 5000/-each.Exit Load (w.e.f. 24-8-09): (a) Ifthe amount,sought to be redeemed orswitched out, is invested for a period ofupto two years 1%; (b) If the amount,sought to be redeemed or switched out,is invested for a period of more than twoyearsNil.

Systematic Withdrawal Plan Minimum of Rs.500 and multiples of

Re1/-


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a. ICICI Prudential Balanced FundAsset allocation is the key to investing success as it helps you reduce the volatilityof returns. By investing in equity for capital appreciation and debt for stablereturns, you can reduce instability of returns by increasing / decreasing exposure tovarious markets, based on in-depth research and analysis.

ICICI Prudential Balanced Fund, an open-ended balanced fund, does just that. It

takes care of this asset allocation by constantly investigating market outlook and

performance and accordingly by increasing / decreasing equity exposure based on

the market outlook and using a core debt portfolio to do the rebalancing.

Investment Philosophy

This fund seeks to optimize the risk-adjusted return by distributing assets betweenboth equity and debt markets. In bullish markets equity allocation can go upto80%. In bearish markets equity allocation can go down to 65%. This dynamicallocation along with core debt portfolio reduces the volatility of return

Investor ProfileThis Plan is ideal for -

Investors seeking exposure to both equity and debt markets through one fund Investors considering reasonable returns with and lower risk through

diversification.

Key Benefits Provides the twin benefits of growth from equity markets and steady income

from debt markets. Lower volatility of returns and lower risk through diversification.

Schemes NAV latest (Rs.)ICICI Prudential Balanced Fund -Dividend

16.43 (21/03/2012)

ICICI Prudential Balanced Fund -Growth

48.83 (21/03/2012)


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Key Features

Type Open ended balanced fundOptions Growth and dividend optionDefault option Growth

Entry load NilExit load 1.00% if investment is redeemed within

1year.Nil if investment is redeemedafter 1year but before the BeneficiaryChild attains the age of 18.

Systematic Investment Plan Monthly: Minimum Rs. 1000 + 5 post-dated cheques for a minimum of Rs.1000 each. Quarterly: Minimum

Rs.5000 + 4 post-dated cheques of Rs.5000 each.

Systematic Withdrawal Plan Minimum of Rs.500/- and Multiplesthereof

Net Asset Value Periodicity Calculated & Declared on everyBusiness day


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b. ICICI Prudential Child Care Plan (Study)All our dreams can come true, if we plan for and pursue them. And we need toremember that our dreams are linked to our children's aspirations. A surgeon today,an astronaut tomorrow and may be a fashion designer the day after. We must

always encourage them to dream big.

ICICI Prudential Child Care Plan, an open-ended fund, is an investment instrument

specially designed to help you give your child a head start in life by leveraging the

opportunities and dynamism of equity and debt markets. It offers two options -

Gift Option - (Suitable if your child is in age group of 1-13 years.) Study Option - (Suitable if your child is in age group of 13-17 years.)

Investment PhilosophyThis fund is invests 65-100% of your money in equity and equity related securitiesto leverage growth opportunities and the other 0-35% is normally invested in debtsecurities to seek stability to your investments.

Key Benefits Personal Accident Cover (for resident applicants) - Till your child attains the

age of 18 or till units are redeemed (whichever is earlier), you as his / her

parent / legal guardian will be eligible for a Personal Accident Coverequivalent to 10 times the value of the Units you have purchased (value atpurchase price) subject to a maximum of limit of Rs. 5 lakh.

Schemes NAV latest (Rs.)ICICI Prudential Child Care Plan -Study Plan

31.3722 (21/03/2012)


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Key Features

Type Open ended fund

Options Cumulative optionDefault option Cumulative optionEntry load Nil

Exit load 1.00% if investment is redeemed within3 years. Nil if investment is redeemedafter 3 years but before the BeneficiaryChild attains the age of 18.

Redemption Cheques Issued Generally Within 3 business day forSpecified RBI locations and additional 3Business Days for Non-RBI locations.

Systematic Investment Plan Monthly: Minimum Rs. 1000 + 5 post-dated cheques for a minimum of Rs.1000 each. Quarterly: MinimumRs.5000 + 4 post-dated cheques of Rs.5000 each.

Systematic Withdrawal Plan Minimum of Rs 500 and multiplesthereof.


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ICICI Prudential Monthly Income Plan

Investing has always meant seeking a stable, regular return. Although there arethose who would sway towards leveraging the benefits of equity investing, severalinvestors are focused on conservative growth and regular income.

However, inflation tends to impact conservative returns, so a limited exposure toequity has the potential to add a spark to your returns, while treading alongcautiously.

ICICI Prudential Monthly Income Plan (MIP)(Monthly Income is not assured and is subject to availability of distributablesurplus), an open-ended fund, is designed to be a low risk income-generatingproduct for an investor who likes to earn the short term debt market returnenhanced by a small equity component that does not significantly add to the risk of

the portfolio.

Investment PhilosophyThis conservatively managed fund invests predominantly in debt securities withthe view of generating regular income. To this basic portfolio, it adds on a verylimited equity exposure to a maximum of 15%, such that the risk-adjusted returnshave potential to be enhanced. The intent is to provide the benefit of equity returns,without adding on significant risk. The fund aims to manage interest rate risks andcredit risks by investing in high quality debt instruments & also has the ability to

be dynamically managed to alter asset allocation, depending on the equity / debtmarket scenario.

Investor ProfileThis fund is ideal for -

Investors focused on earning income and seeking limited growth without toomuch risk.

Investors willing to take on limited equity exposure. Investors concerned about the interest rate risks in pure debt funds.

Key Benefits A core portfolio invested in debt provides stability to the investment. Limited exposure to equity has the potential to spike up the returns generated

from the basic debt portfolio & provides an opportunity to earn better risk-adjusted returns
http://www.icicipruamc.com/OurFunds/FundDetails.aspx?FundID=19http://www.icicipruamc.com/OurFunds/FundDetails.aspx?FundID=19http://www.icicipruamc.com/OurFunds/FundDetails.aspx?FundID=19


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The fund has the track record of uninterrupted monthly dividends sinceinception

Scheme NAV latest (Rs.)

ICICI Prudential MIPCumulative 27.3245 (21/03/2012)

ICICI Prudential MIP - Dividend -Half Yearly

12.2773 (21/03/2012)

ICICI Prudential MIP - Dividend Monthly

11.5308 (21/03/2012)

ICICI Prudential MIP - Dividend Quarterly

12.2883 (21/03/2012)

Key Features

Type Open ended fundOptions Growth

AEP* (Appreciation & Regular)Dividend (Monthly, Quarterly, Half-Yearly)

Default Option GrowthEntry load Nil

Exit load (a) If the amount, sought to be redeemedor switched out, is invested for a periodof upto1 year from the date of allotment1%; (b) If the amount, sought to beredeemed or switched out, is investedfor a period more than 1year from thedate of allotment - Nil.

Systematic Investment Plan Dividend & AEP Option - Monthly andCumulative (without AEP) Option -Monthly: Min Rs.1000 + 5 post - dtdcheques for a minimum of Rs.1000 eachQuarterly: Minimum Rs. 5000 + 4 post -dated cheques of Rs. 5000 each. ExitLoad: (w.e.f. 01-10-09): (a) If the


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amount, sought to be redeemed orswitched out, is invested for a period ofupto 1 year from the date of allotment1%; (b) If the amount, sought to beredeemed or switched out, is investedfor a period more than 1year from thedate of allotment - Nil.

Systematic Withdrawal Plan Minimum of Rs.500 and multiples ofRe1/-

Net Asset Value Periodicity Calculated & Declared on everyBusiness day


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UTI MUTUAL FUNDS

Here select three equity funds of UTI mutual funds, they are

a) UTI Top 100 Fundb)UTI MNC Fundc) UTI Equity Fund

UTI TOP 100 FUND

Investment Objective: investment will be made in stock of those companies

engaged in the following areas

An open ended equity fund for investment in equity shares, convertible & non

convertible debentures and other capital and money market instruments with a

provision to invest upto 50%of its corpus in PSUs equities and equity related

products. The fund aims to provide unit holders capital appreciation and income

distribution.

Investment Information

Fund type Open endedDate of inception 20/05/2009Investment plan Income retailFund size (Rs.Cr) 652.96 (as of 29th feb 2012)

Number of investors 257449 (as of 29th feb 2012)Min. investment 5000Last dividend 1.2

Bonus N.A.


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Who should invest?

A diversified large cap oriented fund with moderate-style of fundsmanagement is suitable for all equity investors

PerformanceAbsolute Returns

Period Returns (%)

2008-2009 N.A

2009-2010 12.89

2010-2011 -16.16

Since inception 6.50

-4

-3

-2

-1

0

1

2

3

2008-09 2009-10 2010-11 since inceptionUTI TOP 100 Fund

Spliced Equity


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Portfolio

Sectoral Breakdown (%)

Sectoral Breakdown (benchmark)

Market capitalization

Large Mid Small

84.00 13.00 3.00

INDUSTRIAL MANUFACTURING

IT

CONSUMER GOODS

FINANCIAL SERVICES

CEMENT& CEMENT PRODUCTS

CASH

OTHERS

ENERGY


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b) UTI MNC FUND

Investment objective:

Investment will be made in stocks of those companies engaged in the following

areas:

An open ended equity fund with the objective to invest predominantly in the equity

shares of multinational companies in diverse sectors such as FMCG,

pharmaceutical, engineering etc.

Investment information

Fund type Equity diversified

Date of inception 29/05/1998Investment plan Growth retailFund size (Rs.Cr) 214.78 (as of 29th feb 2011)

Number of investors 51487 (as of 29th feb 2011)Min. investment 5000Last dividend N.A.Bonus N.A.

Who should invest?

1. A diversified mid-cap oriented fund with moderate-style of fundsmanagement is suitable for informed investors

Performance

Absolute returns:

Period Returns

2008-2009 82.03

2009-2010 26.072010-2011 -6.04



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Portfolio:

Market capitalization

Large Mid Small

42.00 43.00 15.00

-2

-1

0

1

2

3

4

5

6

7

2008-2009 2009-2010 2010-2011 since inception

UTI MNC FUND

SPLICED EQUITY INDEX


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0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6

pharma

industrial manufacturing

energy

anutomobile

cash

others

consumer goods

sectoral breakdown2

sectoral


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C.UTI EQUITY FUNDInvestment objective


areas:

UTI Equity Fund is open ended equity scheme with an objective of investing at

least 80% of its funds in equity and equity related instrument with medium to high

risk profile and upto 20% in debt and money market instruments with low to

medium risk profile.


Fund type Open ended equity fund

Date of inception 18.05.1992

Investment plan Income retail

Fund size (Rs.Cr.) 2016.56

Number of investors 800247

Min. investment 5000

Last dividend 1

Bonus N.A.

Who should invest?

A diversified large cap oriented fund with conservative- style of funds

management is suitable for all equity investors

Performance

Absolute returns

Period Returns

2008-09 85.17

2009-10 20.50

2010-11 -19.09



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Portfolio

-2

-1

0

1

2

3

4

5

2008-09 2009-10 2010-11 sice inception

UTI Equity Fund

spliced Equity Index

0 0.5 1 1.5 2 2.5 3 3.5

others

financial services

cement & cement products

energy

IT

cash

automobile

consumer goods

pharma

sectoral breakdown

sectoral


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Market capitalization (%)

large Mid Small83.00 13.00 4.00


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BALANCED FUNDS OF UTI

Here select three balanced funds of UTI mutual funds, they are

1. UTI- childrens Career Balanced Plan2. UTI- Retirement Benefit Pension Fund3. UTI- Balanced Fund

1. UTI- Childrens Career Balanced PlanInvestment objective


areas:

An open ended debt oriented fund with investment in Debt/G- Sec of minimum

60% and a maximum of 40% in Equity. Investment can be made in the name of the

children up to the age of 15 years so as to provide them, after they attain the age of

18 years, a means to receive scholarship to meet the scholarship to meet the cost of

higher education and to help them in setting up a profession, practice or business or

enabling them to set up a home or finance the cost of other social obligation


Fund type Hybrid debt orientedDate of inception 12.07.1993

Investment plan No classFund size (Rs.Cr.) 2728.20Number of investors 1956082


Last dividend N.A.Bonus N.A


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Performance

Absolute returns:

Period Returns (%)

2009-10 10.902010-11 -4.002011-12 N.A



Large Mid Small

54.00 27.00 19.00

-2

-1

0

1

2

3

4

5

2009-10 2010-11 2011-12 since inception

UTI- children's career balanced

plan

spliced equity index


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2. UTI- Retirement Benefit Pension FundInvestment objective


areas:

The objective of the scheme is to provide pension to investors particularly self-

employed persons after they attain the age of 58 years, in the form of periodical

cash flow upto the extent of repurchase value of their holding through a systematic

withdrawal plan.


Fund type Hybrid debt orientedDate of inception 26.12.1994

Investment plan No classFund size (Rs.Cr.) 765.25Number of investors 467754

Min. investment 500/- (subject to attaining a min. invest.of Rs.10,000/-)

Last dividend N.A.

Bonus N.A

Performance

Absolute returns:

Period Returns (%)

2009-10 9.552010-11 -7.212011-12 N.A.Since inception 10.68


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Portfolio

Market capitalization:

Large Mid Small

52.00 27.00 21.00

-4

-3

-2

-1

0

1

2

3

4

5

2009-10 2010-11 2011-12 sice inception

UTI- Retirement Benefit Pension

Fund

Spliced Equity Index


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3. UTI- Balanced FundInvestment objective


areas:

An open ended balanced fund investing between 40% to 75% in equity/ equity

related securities and the balance in debt (fixed income securities) with a view to

generate regular income together with capital appreciation.

Fund type Hybrid equity orien

Date of inception 02.01.1995

Investment plan Growth retail

Fund size (Rs.Cr.) 878.55

Number of investors 927179


Last dividend N.A

Bonus N.A

Performance

Absolute Returns

Period Returns (%)

2009-10 16.36

2010-11 -19.23

2011-12 N.A.



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Large Mid Small64.00 25.00 11.00

-5

-4

-3

-2

-1

0

1

2

3

4

5

2009-10 2010-11 2011-12 since inception

UTI Balanced Fund

Spliced Equity


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MUTUAL FUND RISK ANALYSIS

CALCULATION OF MUTUAL FUND RISKS

Any investment decision has to carry a certain amount of risk. So, it means that

mutual funds also carry a risk profile with them. Some of the tools available to

assess your scrips riskiness can also are used to assess a mutual fund's risk (or its

close cousin, volatility)

Beta

This common measure compares a mutual fund's volatility with that of a

benchmark and is supposed to give some sense of how far you can expect a fund to

fall when the market takes a dive, or how high it might climb if the bull is running

hard. A fund with a beta greater than 1 is considered more volatile than the market;

less than 1 means less volatile. So say your fund gets a beta of 1.15 -- it has a

history of fluctuating 15% more than the benchmark if the market is up, the fund

should outperform by 15%. If the market heads lower, the fund should fall by 15%

more.

But beta, though a useful guide, is far from perfect, especially when used as a

proxy for "risk." The problem here, as with many risk measures, is the benchmark.

The benchmark has to be a correct measure of comparison only then will the betahold any indicative value.


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Beta equation (Mutual Fund)

The beta of a fund is determined as follows:

[(n) (sum of (xy))]-[(sum of x) (sum of y)]

[(n) (sum of (xx))]-[(sum of x) (sum of x)]

where: n = # of observations (36 months)

x = rate of return for the S&P 500 Index

y = rate of return for the fund

Standard Deviation

Meet the most popular of the risk measures -- one with a distinct advantage over

beta. While beta compares a fund's returns with a benchmark, standard deviation

measures how far a fund's recent numbers stray from its long-term average. For

example, if Fund X has a 10% average rate of return and a standard deviation of

5%, most of the time, its return will range from 5% to 15%. A large standard

deviation supposedly shows a more risky fund than a smaller one. But here, again,

what's problematic is your reference point. The number alone doesn't tell you

much. You have to compare one standard deviation with the others among a fund's

peers. But a more glaring problem is that the standard deviation system rewards

consistency above all else. A fund is considered stable based on the uniformity of

its own monthly returns. So if it loses money but does so very consistently it can

have a very low standard deviation -- down 3% each and every month wins a

standard deviation of zero. And likewise, a fund that gains 10% one month and15% the next would be penalized by a high standard deviation -- a reminder that

volatility, although perhaps a cousin to risk, itself isn't necessarily a bad thing.


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Formula of Standard Deviation

Sharpe Ratio

This formula, worked by Nobel Laureate Bill Sharpe, tries to quantify how a fund

performs relative to the risk it takes. Take a fund's returns in excess of a guaranteed

investment (a 90-day T-bill) and divide by the standard deviation of those returns.

The bigger the Sharpe ratio, the better a fund performed considering its riskiness.

Here, again, you have the problem of relativity -- the ratio itself doesn't tell you

anything, you have to compare it with the Sharpe of other funds. But this ratio has

an advantage over alpha because it uses standard deviation instead of beta as the

volatility variable, and therefore you don't have to worry that a fund doesn't relate

well to the chosen index. Overseas, one has mutual fund rating companies - like

Morning Star which provide views of risk. Morningstar says that what we investors

really care about is when our funds lose money, not when they're doing better than

the benchmark or than their long-term averages. It measures how often and by how

much a fund trails the monthly T-bill rate, and then compares that average loss

with that for the investment class. The average for a class is 1.00, so numbers

above that mean a fund is riskier than its peers, and below is considered less risky


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Formula of Sharpe Ratio


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CONCLUSION AND SUGGESTIONS

CONCLUSION

There are various funds provided by ICICI MF & UTI MF. Here I selected equity

fund and balanced fund of above companies to analyze performance of those funds

in the current scenario. All funds carry the different amount of risk as well as

return. Performances of all above funds are dependent up on the stock market

variations. As per the analysis of above funds equity fund of both companies has

given more return compared to other funds. Based on the last year performance ofthe above funds equity funds turnover ratio was higher than the other funds. But at

the same time equity fund carry high rate of risk, because a minute variation in

stock market directly affect the returns from the funds. These are the merit and

demerit of equity fund, due to its aggressive positioning, equity fund is most suited

for youngsters, because higher the equity exposure in a scheme, higher will be the

risk. So age group of the investors is an important factor in mutual fund

investments.

SUGGESTION

To Company

Allocating marketing investment according to customer value. Require to conduct awareness programs about Mutual Fund


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To clients

Invest and monitor portfolio from time to time.

Read term & condition before invest money.


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LIMITATIONS OF THE STUDY

The main limitation of my study is from the investor side, as for providing themthe PMS I need to know their past investments in detail which they hesitate to

disclose as they find it hard to trust anyone regarding their investments, so I have

to first built up the trust & then talk about the investments, as the main limitation is

time so it takes me at least few days for this procedure through regular visits &

follow ups.

Time period undertaken for the project was also one of the limiting factors The sample size taken for drawing a conclusion is too small to get an accurate

result & is only small portion of actual population.

Difficult to overcome investors who wants return in less time & at times itsdifficult to get the documents required for formalities from investors.


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REFERENCES

1. www.utimf.com2. www.icicipruamc.com3. www.amfiindia.com4. www.investmentcompanyinstitute.com5. www.moneycontrol.com

Books:

Indian Mutual Funds Handbook by Sundar Sankaran

Managing a Portfolio of Mutual Funds by Ronald K Rutherford

icici mf and uti mf comparison

Documents