mutual fund analysis

1. COMPARATIVE ANALYSIS OF MUTUAL FUNDS

2. MUTUAL FUND OPERATION FLOW CHART

3. TYPES OF MUTUAL FUNDS SCHEMES
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According to Maturity Period
Open Ended ï ® Close Ended
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According to Investment Objective ï· ® Growth/Equity Oriented Scheme ï` ® Income /
Debt Oriented Schemes ï ® Balanced Scheme
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4. INSTRUMENTS OF INVESTMENT
EQUITY ïN® CONVERTIBLE DEBENTURES ïš ® FIXED INCOME SECURITIES ï ® SHORT TERM
SECURITIES
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5. Facilities Provided by Mutual Funds to the Investors
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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

6. INTRODUCTION TO THE ORGANIZATION

7. SHAREKHAN BACKGROUND
Retail broking arm of the Mumbai based SSKI group. ïH® Established in 1922 ïÌ ®
Share khan's ground network includes over 700+ Share shops in 130+ cities in India.
ïh® SSKI group ventured into institutional broking and corporate finance 18 years
ago.
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8. OBJECTIVES OF THE STUDY
The present study focuses on the comparative analysis of mutual funds schemes
performance. ïu® To evaluate the schemes on the basis of risk and return by
calculating Beta, Alpha, Standard Deviation.
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9. RESEARCH METHEDOLOGY
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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.

10. DATA COLLECTION
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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 House’s
Personal Sites.

11. SAMPLE & SAMPLING TECHNIQUE
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SAMPLE SIZE: 7 Schemes of 4 Mutual Fund Companies namely Franklin Templeton,
Reliance, HDFC and ICICI Prudential has been selected. SAMPLING TECHNIQUE: In the
present study Convenience Sampling technique has been used.

12. DATA ANALYSIS AND FINDINGS
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The following parameters have been chosen for comparison: Fund Objective Fund Style
Fund Details History Portfolio Characteristics Sectoral Allocation Portfolio
Concentration Performance Analysis

13. Following Test’s have been applied:
BETA ïi® ALPHA ï™® STANDARD DEVIATION
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14. BETA
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A Beta is a measure of risk. It compares a mutual fund’s volatility with that of
a benchmark. If the beta of the stock is 1, it means that the returns in the stock
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.

15. COMPARATIVE ANALYSIS (BETA)
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LARGE CAP FUND
0.96 0.94 0.92 0.9 0.88 0.86 0.84 Franklin HDFC PRU ICICI Reliance India TOP 200
Growth Vision Bluechip BETA

16. ï ®
MID CAP FUND
1 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

17. ALPHA
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•
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Alpha is a financial term describing that part of an investor’s return that is
due to the skills of the investment manager, as distinct from the return of the
market as a whole. αi < rf: the manager or firm has destroyed value αi = rf: the
manager or firm has neither created nor destroyed value αi > rf: the manager or
firm has created value

18. ï ®
LARGE CAP FUNDS
5 4 .5 4 3 .5 3 2 .5 2 1 .5 1 0 .5 0
AL H PA
F nk ra lin H F D C P U IC I R lia R IC e nce India T OP 2 0 G 0 row th V ion is B
chip lue

19. ïà ®
MID CAP FUNDS
6 5 4 3 2 1 0 -1 -2 -3 F n lin ra k P rim a HF DC Cp l a ita B ild r ue R lia c e
ne G row th AP A LH

20. STANDARD DEVIATION
The total risk of a given fund is measured in terms of standard deviation. ïÌ ® It
tells us how much the values have deviated from the mean of the values.
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21. STANDARD DEVIATION
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LARGE CAP FUNDS
26 25.5 25 24.5 24 23.5 23 22.5 22 21.5
S TANDARD DEVIATION
F ranklin HDF TOP PRU IC I Reliance C IC India 200 Growth Vis ion Bluechip

22. ï ®
MID CAP FUNDS
29 28 27 26 25 24 23 22 F ranklin HDF Reliance C Prim aC apital Growth Builder
S TANDARD DEVIATION

23. FINDINGS
ICICI PRU--This fund has an aggressive stock-picking style, but with a careful eye
on risk control. -The fund has a great exposure to banking and software sector
stocks. ïo® FRANKLIN TEMPLETON— - Franklin India Blue-chip fund is one of the
biggest diversified equity funds and is one of the most preferred large cap funds.
- One of the astonishing features of the fund’s investment style is the buy-and
hold-strategy.
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24. RELIANCE -High returns can be expected from this fund but its aggressiveness does
not make it apt for conservative investors. ïh ® HDFC -The fund's exposure to large-
cap stocks is a cushion in the falling markets. It has not been a top performer as
some of the other mid-cap funds, but quite a consistent one -This fund is a good
bet for those wanting to invest in mid-caps but not willing to take too much of a
risk.
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25. CONCLUSIONS
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Best option consider by the investors when it comes to investing their money in
Mutual Funds. This industry is growing at a good pace. Money Invested in Mutual
Funds is safe. Investors who are looking for very high instant returns, mutual
funds are not recommended; they are meant for investors committed to patient
investing.

26. RECOMMENDATIONS
Following suggestions can be made so that the mutual fund houses can design their
schemes in such a manner that it can improve their performance as compared to other
AMC’s. ï ® A thorough analysis should be done while selecting the securities for
a particular portfolio. ïn® Fundamental security analysis should also be done i.e.
the relationship between a security’s return and economy wide events.

27. THANK YOU..!!